☑ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||||||||||
For the fiscal year ended | |||||||||||||||||
or | |||||||||||||||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Indiana | 45-2080495 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||
Common Stock, par value $0.01 per share | XYL | New York Stock Exchange | ||||||||
Securities registered pursuant to Section 12(g) of the Act: None |
ITEM | PAGE | |||||||
PART I | ||||||||
1 | ||||||||
1A. | ||||||||
1B. | ||||||||
2 | ||||||||
3 | ||||||||
4 | ||||||||
* | ||||||||
PART II | ||||||||
5 | ||||||||
6 | ||||||||
7 | ||||||||
7A. | ||||||||
8 | ||||||||
9 | ||||||||
9A. | ||||||||
9B. | ||||||||
9C. | ||||||||
PART III | ||||||||
10 | ||||||||
11 | ||||||||
12 | ||||||||
13 | ||||||||
14 | ||||||||
PART IV | ||||||||
15 | ||||||||
16 | ||||||||
ITEM | PAGE | |
PART I | ||
1 | ||
1A. | ||
1B. | ||
2 | ||
3 | ||
4 | ||
* | ||
PART II | ||
5 | ||
6 | ||
7 | ||
7A. | ||
8 | ||
9 | ||
9A. | ||
9B. | ||
PART III | ||
10 | ||
11 | ||
12 | ||
13 | ||
14 | ||
PART IV | ||
15 | ||
16 | ||
* | Included pursuant to the Instruction |
7 |
Market Applications | 2022 Revenue (in millions) | % Revenue | Major Products | Primary Brands | |||||||||||||||||||||||||||||||||||||||||
Market Applications | 2019 Revenue (in millions) | % Revenue | Major Products | Primary Brands | |||||||||||||||||||||||||||||||||||||||||
Water Infrastructure | Transport | $ | 1,780 | 82 | % | • Water and wastewater pumps • Filtration, disinfection and biological treatment equipment • Mobile dewatering equipment | • Flygt • Godwin • Leopold • Sanitaire • Wedeco | Water Infrastructure | Transport | $ | 1,943 | 82 | % | • Water and wastewater pumps • Filtration, disinfection and biological treatment equipment • Mobile dewatering equipment and rental services | • Flygt • Godwin • Leopold • Sanitaire • Wedeco • Xylem Vue | ||||||||||||||||||||||||||||||
Treatment | 397 | 18 | % | Treatment | 421 | 18 | % | ||||||||||||||||||||||||||||||||||||||
$ | 2,364 | 100 | % | ||||||||||||||||||||||||||||||||||||||||||
$ | 2,177 | 100 | % | ||||||||||||||||||||||||||||||||||||||||||
Applied Water | Building Services | $ | 848 | 55 | % | • Pumps • Valves • Heat exchangers • Controls • Dispensing equipment systems | • A-C Fire Pump • Bell & Gossett • Flojet • Goulds Water Technology • Jabsco • Lowara • Standard Xchange | Applied Water | Commercial Building Services | $ | 659 | 37 | % | • Pumps • Valves • Heat exchangers • Controls • Dispensing equipment systems | • A-C Fire Pump • Bell & Gossett • Flojet • Goulds Water Technology • Jabsco • Lowara • Standard Xchange • Xylem Vue | ||||||||||||||||||||||||||||||
Industrial Water | 693 | 45 | % | Residential Building Services | 306 | 17 | % | ||||||||||||||||||||||||||||||||||||||
$ | 1,541 | 100 | % | ||||||||||||||||||||||||||||||||||||||||||
Applied Water | Applied Water | Industrial Water | 802 | 46 | % | ||||||||||||||||||||||||||||||||||||||||
$ | 1,767 | 100 | % | • Pumps • Valves • Heat exchangers • Controls • Dispensing equipment systems | |||||||||||||||||||||||||||||||||||||||||
• Pumps • Valves • Heat exchangers • Controls • Dispensing equipment systems | • A-C Fire Pump • Bell & Gossett • Flojet • Goulds Water Technology • Jabsco • Lowara • Standard Xchange • Xylem Vue | ||||||||||||||||||||||||||||||||||||||||||||
• A-C Fire Pump • Bell & Gossett • Flojet • Goulds Water Technology • Jabsco • Lowara • Standard Xchange | |||||||||||||||||||||||||||||||||||||||||||||
Measurement & Control Solutions | Water | $ | 768 | 50 | % | Measurement & Control Solutions | Water | $ | 1,126 | 81 | % | ||||||||||||||||||||||||||||||||||
Energy | 337 | 22 | % | Energy | 265 | 19 | % | • Smart meters • Networked communication devices • Data analytics • Test equipment • Controls • Sensor devices • Software & managed services • Critical infrastructure services | |||||||||||||||||||||||||||||||||||||
Test | 327 | 21 | % | $ | 1,391 | 100 | % | ||||||||||||||||||||||||||||||||||||||
Measurement & Control Solutions | • Pure Technologies • Sensus • Smith Blair • WTW • YSI • Xylem Vue | ||||||||||||||||||||||||||||||||||||||||||||
Software as a Service/Other | 99 | 7 | % | • Smart meters • Networked communication devices • Data analytics • Test equipment • Controls • Sensor devices • Software & managed services • Critical infrastructure services | |||||||||||||||||||||||||||||||||||||||||
$ | 1,531 | 100 | % | • EmNet • Pure • Sensus • Smith Blair • Visenti • WTW • YSI | |||||||||||||||||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||||
$ Amount | % of Total | $ Amount | % of Total | $ Amount | % of Total | ||||||||||||||||||||||||||||||
United States | $ | 2,573 | 47 | % | $ | 2,280 | 44 | % | $ | 2,297 | 47 | % | |||||||||||||||||||||||
Western Europe | 1,411 | 26 | % | 1,414 | 27 | % | 1,259 | 26 | % | ||||||||||||||||||||||||||
Emerging Markets (a) | 1,074 | 19 | % | 1,066 | 21 | % | 919 | 19 | % | ||||||||||||||||||||||||||
Other | 464 | 8 | % | 435 | 8 | % | 401 | 8 | % | ||||||||||||||||||||||||||
Total | $ | 5,522 | $ | 5,195 | $ | 4,876 |
Revenue | ||||||||||||||||||||
(in millions) | 2019 | 2018 | 2017 | |||||||||||||||||
$ Amount | % of Total | $ Amount | % of Total | $ Amount | % of Total | |||||||||||||||
United States | $ | 2,554 | 49 | % | $ | 2,424 | 47 | % | $ | 2,161 | 46 | % | ||||||||
Europe | 1,380 | 26 | % | 1,449 | 28 | % | 1,335 | 28 | % | |||||||||||
Asia Pacific | 659 | 13 | % | 660 | 13 | % | 611 | 13 | % | |||||||||||
Other | 656 | 12 | % | 674 | 12 | % | 600 | 13 | % | |||||||||||
Total | $ | 5,249 | $ | 5,207 | $ | 4,707 |
Location | State or Country | Principal Business Activity | Approx. Square Feet | Owned or Leased | ||||||||||||||||||||||
Water Infrastructure | ||||||||||||||||||||||||||
Emmaboda | Sweden | Administration and Manufacturing | 1,197,000 | Owned | ||||||||||||||||||||||
Manufacturing and Research & Development | 366,000 | Leased | ||||||||||||||||||||||||
Stockholm | Sweden | Administration and Research & Development | 182,000 | Leased | ||||||||||||||||||||||
Bridgeport | NJ | Administration and Manufacturing | 136,000 | Leased | ||||||||||||||||||||||
Shenyang | China | Manufacturing | 125,000 | Owned | ||||||||||||||||||||||
Applied Water | ||||||||||||||||||||||||||
Morton Grove | IL | Administration and Manufacturing | Owned | |||||||||||||||||||||||
Administration and Manufacturing | Owned | |||||||||||||||||||||||||
Owned | ||||||||||||||||||||||||||
Manufacturing | Owned | |||||||||||||||||||||||||
Manufacturing | ||||||||||||||||||||||||||
Stockerau | Austria | 234,000 | Owned | |||||||||||||||||||||||
Strzelin | Poland | Manufacturing | 185,000 | Owned | ||||||||||||||||||||||
Cheektowaga | NY | Manufacturing | 147,000 | Owned | ||||||||||||||||||||||
Measurement & Control Solutions | ||||||||||||||||||||||||||
Ludwigshafen | Germany | Manufacturing | 318,000 | Owned | ||||||||||||||||||||||
Texarkana | AR | Manufacturing | 254,000 | Owned | ||||||||||||||||||||||
Uniontown | PA | Manufacturing | 240,000 | Leased | ||||||||||||||||||||||
DuBois | PA | Manufacturing | 197,000 | Owned | ||||||||||||||||||||||
Durham | NC | Administration and Research & Development | Leased | |||||||||||||||||||||||
Manufacturing | Leased | |||||||||||||||||||||||||
Dubois | PA | 137,000 | Leased | |||||||||||||||||||||||
Regional Locations | ||||||||||||||||||||||||||
Dubai | United Arab Emirates | Manufacturing | 144,000 | Owned | ||||||||||||||||||||||
Nottinghamshire | United Kingdom | 139,000 | Leased | |||||||||||||||||||||||
Nanterre | France | Sales & Service Office | 139,000 | Leased | ||||||||||||||||||||||
Langenhagen | Germany | Sales & Service Office | 134,000 | |||||||||||||||||||||||
Schaffhausen | Switzerland | 26,000 | Leased | |||||||||||||||||||||||
Washington | DC | Administration | 18,000 | Leased |
NAME | AGE | CURRENT TITLE | OTHER BUSINESS EXPERIENCE DURING PAST 5 YEARS | |||||||||||||||||
Patrick K. Decker | 58 | President and Chief Executive Officer (2014) | ||||||||||||||||||
Senior VP and Chief Financial Officer | • | |||||||||||||||||||
Senior VP, General Counsel (2022) | • Executive Vice President,Global General Counsel and Corporate Secretary, National Express Group (2015) | |||||||||||||||||||
Franz Cerwinka | 53 | Senior VP and President, Emerging Markets | • Senior VP •Chief Executive Officer, Johnson Controls-Hitachi Air Conditioning (2015) | |||||||||||||||||
Michael McGann | 52 | Senior VP and President, Americas and Measurement & Control Solutions (2023) | • VP, North America Utilities Commercial Team (2022) - • VP, Sensus Americas, Global Engineering and Assessment Services (2017) - • VP, Quality, Sensus USA Inc. (2013) | |||||||||||||||||
Geri McShane | VP, Controller and Chief Accounting Officer (2019) | • Controller, Accounting and Reporting (2016) | ||||||||||||||||||
• Senior VP and President, • Senior VP and President, • President, Carrier Residential, United Technologies Corporations (2018) • VP and General Manager, Carrier Residential, United Technologies Corporations (2017) | ||||||||||||||||||||
Claudia S. Toussaint | Senior VP, | • Senior VP, General Counsel and Corporate Secretary | ||||||||||||||||||
Hayati Yarkadas | 54 | Senior VP and | • Senior Vice President and President, Performance Materials, Trinseo S.A. (2015) | |||||||||||||||||
NAME | TITLE | |||||||
Robert F. Friel | Board Chair, Xylem Inc., Former Chairman, President and CEO, PerkinElmer, Inc. | |||||||
Patrick K. Decker | President and Chief Executive Officer, Xylem Inc. | |||||||
Victoria D. Harker | Executive Vice President and Chief Financial Officer, TEGNA, Inc. | |||||||
Steven R. Loranger | Former Chairman, President and Chief Executive Officer, ITT Corporation | |||||||
Mark D. Morelli | President and Chief Executive Officer, Vontier Corporation | |||||||
Jerome A. Peribere | Former President and Chief Executive Officer, Sealed Air Corporation | |||||||
Markos I. Tambakeras | ||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share (a) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b) | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (b) | ||||||||||||||||||||||
10/1/ | — | — | — | $ | ||||||||||||||||||||||
11/1/ | — | — | — | $ | ||||||||||||||||||||||
12/1/ | — | — | — | $ |
(a)Average price paid per share is calculated on a settlement basis. (b)On August 24, 2015, our Board of Directors authorized the repurchase of up to $500 million in shares with no expiration date. The program's objective is to deploy our capital in a manner that benefits our shareholders and maintains our focus on growth. There were no shares repurchased under this program during the three months ended December 31, 2022. There are up to $182 million in shares that may still be purchased under this plan as of December 31, 2022. 35 |
XYL | S&P 500 | S&P 500 Industrials Index | |||||||||||||||||||||||
XYL | S&P 500 | S&P 500 Industrials Index | |||||||||||||||||||||||
December 31, 2014 | 100 | 100 | 100 | ||||||||||||||||||||||
December 31, 2015 | 97 | 101 | 97 | ||||||||||||||||||||||
December 31, 2016 | 134 | 113 | 116 | ||||||||||||||||||||||
December 31, 2017 | 187 | 138 | 139 | December 31, 2017 | 100 | 100 | 100 | ||||||||||||||||||
December 31, 2018 | 185 | 132 | 120 | December 31, 2018 | 99 | 96 | 87 | ||||||||||||||||||
December 31, 2019 | 221 | 174 | 156 | December 31, 2019 | 118 | 126 | 112 | ||||||||||||||||||
December 31, 2020 | December 31, 2020 | 155 | 149 | 124 | |||||||||||||||||||||
December 31, 2021 | December 31, 2021 | 184 | 191 | 151 | |||||||||||||||||||||
December 31, 2022 | December 31, 2022 | 172 | 157 | 142 |
Year Ended December 31, | |||||||||||||||||||
(in millions, except per share data) | 2019 (a) (b) | 2018 (b) | 2017 (c) | 2016 (c) | 2015 | ||||||||||||||
Results of Operations Data: | |||||||||||||||||||
Revenue | $ | 5,249 | $ | 5,207 | $ | 4,707 | $ | 3,771 | $ | 3,653 | |||||||||
Gross profit | 2,046 | 2,026 | 1,847 | 1,462 | 1,407 | ||||||||||||||
Gross margin | 39.0 | % | 38.9 | % | 39.2 | % | 38.8 | % | 38.5 | % | |||||||||
Operating income | 486 | 654 | 552 | 408 | 454 | ||||||||||||||
Operating margin | 9.3 | % | 12.6 | % | 11.7 | % | 10.8 | % | 12.4 | % | |||||||||
Net income attributable to Xylem | 401 | 549 | 331 | 260 | 340 | ||||||||||||||
Per Share Data: | |||||||||||||||||||
Earnings per share: | |||||||||||||||||||
Basic | $ | 2.23 | $ | 3.05 | $ | 1.84 | $ | 1.45 | $ | 1.88 | |||||||||
Diluted | 2.21 | 3.03 | 1.83 | 1.45 | 1.87 | ||||||||||||||
Basic shares outstanding | 180.0 | 179.8 | 179.6 | 179.1 | 180.9 | ||||||||||||||
Diluted shares outstanding | 181.2 | 181.1 | 180.9 | 180.0 | 181.7 | ||||||||||||||
Cash dividends per share | $ | 0.96 | $ | 0.84 | $ | 0.72 | $ | 0.62 | $ | 0.56 | |||||||||
Balance Sheet Data (at period end): | |||||||||||||||||||
Cash and cash equivalents | $ | 724 | $ | 296 | $ | 414 | $ | 308 | $ | 680 | |||||||||
Working capital* | 919 | 988 | 873 | 878 | 810 | ||||||||||||||
Total assets | 7,710 | 7,222 | 6,860 | 6,474 | 4,657 | ||||||||||||||
Total debt | 2,316 | 2,308 | 2,200 | 2,368 | 1,274 |
•Water Infrastructure serves the water infrastructure sector with pump systems that transport water from aquifers, lakes, rivers and seas; with filtration, ultraviolet and ozone systems that provide treatment, making the water fit to use; and pumping solutions that move the wastewater and storm water to treatment facilities where our mixers, biological treatment, monitoring and control systems provide the primary functions in the treatment process. We also provide sales and rental of specialty dewatering pumps and related equipment and services. Additionally, our offerings use monitoring and control, smart and connected technologies to allow for remote monitoring of performance and enable products to self-optimize pump operations maximizing energy efficiency and minimizing unplanned downtime and maintenance for our customers. In the Water Infrastructure segment, we provide the majority of our sales directly to customers along with strong applications expertise, while the remaining amount is through distribution partners. |
(in millions, except per share data) | 2022 | 2021 | |||||||||||||||||||||
Net income & Earnings per share | $ | 355 | $ | 1.96 | $ | 427 | $ | 2.35 | |||||||||||||||
Restructuring and realignment | 34 | 0.19 | 22 | 0.12 | |||||||||||||||||||
Special charges | 160 | (a) | 0.89 | 12 | 0.07 | ||||||||||||||||||
(Gain) loss from sale of business | (1) | (0.01) | (2) | (0.01) | |||||||||||||||||||
Tax effects of adjustments (b) | (32) | (c) | $ | (0.18) | $ | (7) | $ | (0.04) | |||||||||||||||
Adjusted net income & Adjusted earnings per share | $ | 516 | $ | 2.85 | $ | 452 | $ | 2.49 |
(in millions, except per share data) | 2019 | 2018 | ||||||||||||
Net income & Earnings per share | $ | 401 | $ | 2.21 | $ | 549 | $ | 3.03 | ||||||
Restructuring and realignment, net of tax of $19 and $12 | 63 | 0.35 | 36 | 0.20 | ||||||||||
Special charges, net of tax of $6 and $1 | 172 | 0.95 | 12 | 0.07 | ||||||||||
Tax-related special items | (88 | ) | (0.48 | ) | (75 | ) | (0.42 | ) | ||||||
(Gain) loss from sale of business, net of tax benefit of $0 | (1 | ) | (0.01 | ) | — | — | ||||||||
Adjusted net income & Adjusted earnings per share | $ | 547 | $ | 3.02 | $ | 522 | $ | 2.88 |
asset impairment charges of $14 million recorded in the period. | |||
the relevant taxing jurisdiction. | |||
(in millions) | 2019 | 2018 | ||||||
Net cash provided by operating activities | $ | 839 | $ | 586 | ||||
Capital expenditures | (226 | ) | (237 | ) | ||||
Free cash flow | $ | 613 | $ | 349 | ||||
Cash paid for Sensus acquisition related costs | — | 1 | ||||||
Free cash flow, excluding Sensus acquisition related costs | $ | 613 | $ | 350 | ||||
Net cash used in investing activities | $ | (231 | ) | $ | (643 | ) | ||
Net cash used by financing activities | $ | (177 | ) | $ | (40 | ) |
(in millions) | 2019 | 2018 | ||||||
Net Income | $ | 401 | $ | 549 | ||||
Income tax expense | 15 | 36 | ||||||
Interest expense (Income), net | 62 | 78 | ||||||
Depreciation | 117 | 117 | ||||||
Amortization | 140 | 144 | ||||||
EBITDA | $ | 735 | $ | 924 | ||||
Share-based compensation | 29 | 30 | ||||||
Restructuring and realignment | 82 | 47 | ||||||
Special charges | 178 | 12 | ||||||
(Gain) loss from sale of business | (1 | ) | — | |||||
Adjusted EBITDA | $ | 1,023 | $ | 1,013 |
(in millions) | 2022 | 2021 | ||||||||||||||||||
Net cash provided by operating activities | $ | 596 | $ | 538 | ||||||||||||||||
Capital expenditures | (208) | (208) | ||||||||||||||||||
Free cash flow | $ | 388 | $ | 330 | ||||||||||||||||
Net cash used in investing activities | $ | (191) | $ | (183) | ||||||||||||||||
Net cash provided (used) by financing activities | $ | (790) | $ | (855) |
(in millions) | 2019 | 2018 | 2019 v. 2018 | (in millions) | 2022 | 2021 | 2022 v. 2021 | ||||||||||||||||||||||||||||||||||||
Revenue | $ | 5,249 | $ | 5,207 | 0.8 | % | Revenue | $ | 5,522 | $ | 5,195 | 6.3 | % | ||||||||||||||||||||||||||||||
Gross profit | 2,046 | 2,026 | 1.0 | % | Gross profit | 2,084 | 1,975 | 5.5 | % | ||||||||||||||||||||||||||||||||||
Gross margin | 39.0 | % | 38.9 | % | 10 | bp | Gross margin | 37.7 | % | 38.0 | % | (30) | bp | ||||||||||||||||||||||||||||||
Restructuring and realignment costs | 5 | 5 | — | % | |||||||||||||||||||||||||||||||||||||||
Realignment costs | Realignment costs | 4 | 4 | — | % | ||||||||||||||||||||||||||||||||||||||
Adjusted gross profit | 2,051 | 2,031 | 1.0 | % | Adjusted gross profit | 2,088 | 1,979 | 5.5 | % | ||||||||||||||||||||||||||||||||||
Adjusted gross margin | 39.1 | % | 39.0 | % | 10 | bp | Adjusted gross margin | 37.8 | % | 38.1 | % | (30) | bp | ||||||||||||||||||||||||||||||
Total operating expenses | 1,560 | 1,372 | 13.7 | % | Total operating expenses | 1,462 | 1,390 | 5.2 | % | ||||||||||||||||||||||||||||||||||
Expense to revenue ratio | 29.7 | % | 26.3 | % | 340 | bp | Expense to revenue ratio | 26.5 | % | 26.8 | % | (30) | bp | ||||||||||||||||||||||||||||||
Restructuring and realignment costs | (77 | ) | (43 | ) | 79.1 | % | Restructuring and realignment costs | (30) | (18) | 66.7 | % | ||||||||||||||||||||||||||||||||
Special charges | (159 | ) | (12 | ) | NM | Special charges | (16) | (4) | 300.0 | % | |||||||||||||||||||||||||||||||||
Adjusted operating expenses | 1,324 | 1,317 | 0.5 | % | Adjusted operating expenses | 1,416 | 1,368 | 3.5 | % | ||||||||||||||||||||||||||||||||||
Adjusted operating expenses to revenue ratio | 25.2 | % | 25.3 | % | (10 | )bp | Adjusted operating expenses to revenue ratio | 25.6 | % | 26.3 | % | (70) | bp | ||||||||||||||||||||||||||||||
Operating income | 486 | 654 | (25.7 | )% | Operating income | 622 | 585 | 6.3 | % | ||||||||||||||||||||||||||||||||||
Operating margin | 9.3 | % | 12.6 | % | (330 | )bp | Operating margin | 11.3 | % | 11.3 | % | — | bp | ||||||||||||||||||||||||||||||
Interest and other non-operating expense (income), net | 71 | 69 | 2.9 | % | |||||||||||||||||||||||||||||||||||||||
Gain (loss) from sale of business | 1 | — | NM | ||||||||||||||||||||||||||||||||||||||||
U.K. pension settlement expense | U.K. pension settlement expense | 140 | — | NM | |||||||||||||||||||||||||||||||||||||||
Interest and other non-operating expense, net | Interest and other non-operating expense, net | 43 | 76 | (43.4) | % | ||||||||||||||||||||||||||||||||||||||
Gain from sale of business | Gain from sale of business | 1 | 2 | (50.0) | % | ||||||||||||||||||||||||||||||||||||||
Income tax expense | 15 | 36 | (58.3 | )% | Income tax expense | 85 | 84 | 1.2 | % | ||||||||||||||||||||||||||||||||||
Tax rate | 3.7 | % | 6.1 | % | (240 | )bp | Tax rate | 19.2 | % | 16.3 | % | 290 | bp | ||||||||||||||||||||||||||||||
Net income | $ | 401 | $ | 549 | (27.0 | )% | Net income | $ | 355 | $ | 427 | (16.9) | % |
Water Infrastructure | Applied Water | Measurement & Control Solutions | Total Xylem | ||||||||||||||||||||||||||||||||
(in millions) | $ Change | % Change | $ Change | % Change | $ Change | % Change | $ Change | % Change | |||||||||||||||||||||||||||
2021 Revenue | $ | 2,247 | $ | 1,613 | $ | 1,335 | $ | 5,195 | |||||||||||||||||||||||||||
Organic Impact | 266 | 11.8 | % | 220 | 13.6 | % | 109 | 8.2 | % | 595 | 11.5 | % | |||||||||||||||||||||||
Acquisitions/(Divestitures) | — | — | % | — | — | % | (9) | (0.7) | % | (9) | (0.2) | % | |||||||||||||||||||||||
Constant Currency | 266 | 11.8 | % | 220 | 13.6 | % | 100 | 7.5 | % | 586 | 11.3 | % | |||||||||||||||||||||||
Foreign currency translation (a) | (149) | (6.6) | % | (66) | (4.1) | % | (44) | (3.3) | % | (259) | (5.0) | % | |||||||||||||||||||||||
Total change in revenue | 117 | 5.2 | % | 154 | 9.5 | % | 56 | 4.2 | % | 327 | 6.3 | % | |||||||||||||||||||||||
2022 Revenue | $ | 2,364 | $ | 1,767 | $ | 1,391 | $ | 5,522 |
Water Infrastructure | Applied Water | Measurement & Control Solutions | Total Xylem | ||||||||||||||||||||
(in millions) | $ Change | % Change | $ Change | % Change | $ Change | % Change | $ Change | % Change | |||||||||||||||
2018 Revenue | $ | 2,176 | $ | 1,534 | $ | 1,497 | $ | 5,207 | |||||||||||||||
Organic Growth | 71 | 3.3 | % | 36 | 2.3 | % | 81 | 5.4 | % | 188 | 3.6 | % | |||||||||||
Acquisitions/(Divestitures) | — | — | % | — | — | % | (22 | ) | (1.5 | )% | (22 | ) | (0.4 | )% | |||||||||
Constant Currency | 71 | 3.3 | % | 36 | 2.3 | % | 59 | 3.9 | % | 166 | 3.2 | % | |||||||||||
Foreign currency translation (a) | (70 | ) | (3.2 | )% | (29 | ) | (1.9 | )% | (25 | ) | (1.7 | )% | (124 | ) | (2.4 | )% | |||||||
Total change in revenue | 1 | — | % | 7 | 0.5 | % | 34 | 2.3 | % | 42 | 0.8 | % | |||||||||||
2019 Revenue | $ | 2,177 | $ | 1,541 | $ | 1,531 | $ | 5,249 |
Water Infrastructure | Applied Water | Measurement & Control Solutions | Total Xylem | ||||||||||||||||||||||||||||||||
(in millions) | $ Change | % Change | $ Change | % Change | $ Change | % Change | $ Change | % Change | |||||||||||||||||||||||||||
2021 Orders | $ | 2,471 | $ | 1,860 | $ | 1,969 | $ | 6,300 | |||||||||||||||||||||||||||
Organic Impact | 302 | 12.2 | % | 2 | 0.1 | % | (50) | (2.5) | % | 254 | 4.0 | % | |||||||||||||||||||||||
Acquisitions/(Divestitures) | — | — | % | — | — | % | (18) | (0.9) | % | (18) | (0.3) | % | |||||||||||||||||||||||
Constant Currency | 302 | 12.2 | % | 2 | 0.1 | % | (68) | (3.5) | % | 236 | 3.7 | % | |||||||||||||||||||||||
Foreign currency translation (a) | (166) | (6.7) | % | (68) | (3.7) | % | (45) | (2.3) | % | (279) | (4.4) | % | |||||||||||||||||||||||
Total change in orders | 136 | 5.5 | % | (66) | (3.5) | % | (113) | (5.7) | % | (43) | (0.7) | % | |||||||||||||||||||||||
2022 Orders | $ | 2,607 | $ | 1,794 | $ | 1,856 | $ | 6,257 |
Water Infrastructure | Applied Water | Measurement & Control Solutions | Total Xylem | ||||||||||||||||||||
(in millions) | $ Change | % Change | $ Change | % Change | $ Change | % Change | $ Change | % Change | |||||||||||||||
2018 Orders | $ | 2,255 | $ | 1,557 | $ | 1,625 | $ | 5,437 | |||||||||||||||
Organic Growth | 53 | 2.4 | % | 28 | 1.8 | % | (33 | ) | (2.0 | )% | 48 | 0.9 | % | ||||||||||
Acquisitions/(Divestitures) | — | — | % | — | — | % | (17 | ) | (1.0 | )% | (17 | ) | (0.3 | )% | |||||||||
Constant Currency | 53 | 2.4 | % | 28 | 1.8 | % | (50 | ) | (3.1 | )% | 31 | 0.6 | % | ||||||||||
Foreign currency translation (a) | (74 | ) | (3.3 | )% | (29 | ) | (1.9 | )% | (26 | ) | (1.6 | )% | (129 | ) | (2.4 | )% | |||||||
Total change in orders | (21 | ) | (0.9 | )% | (1 | ) | (0.1 | )% | (76 | ) | (4.7 | )% | (98 | ) | (1.8 | )% | |||||||
2019 Orders | $ | 2,234 | $ | 1,556 | $ | 1,549 | $ | 5,339 |
(in millions) | 2019 | 2018 | Change | (in millions) | 2022 | 2021 | Change | ||||||||||||||||||||
Selling, general and administrative expenses ("SG&A") | $ | 1,158 | $ | 1,161 | (0.3 | )% | |||||||||||||||||||||
Selling, general and administrative expenses | Selling, general and administrative expenses | $ | 1,227 | $ | 1,179 | 4.1 | % | ||||||||||||||||||||
SG&A as a % of revenue | 22.1 | % | 22.3 | % | (20 | )bp | SG&A as a % of revenue | 22.2 | % | 22.7 | % | (50) | bp | ||||||||||||||
Research and development expenses ("R&D") | 191 | 189 | 1.1 | % | |||||||||||||||||||||||
Research and development expenses | Research and development expenses | 206 | 204 | 1.0 | % | ||||||||||||||||||||||
R&D as a % of revenue | 3.6 | % | 3.6 | % | — | R&D as a % of revenue | 3.7 | % | 3.9 | % | (20) | bp | |||||||||||||||
Restructuring and asset impairment charges | 63 | 22 | 186.4 | % | Restructuring and asset impairment charges | 29 | 7 | 314.3 | % | ||||||||||||||||||
Operating expenses | $ | 1,412 | $ | 1,372 | 2.9 | % | Operating expenses | $ | 1,462 | $ | 1,390 | 5.2 | % | ||||||||||||||
Expense to revenue ratio | 26.9 | % | 26.3 | % | 60 | bp | Expense to revenue ratio | 26.5 | % | 26.8 | % | (30) | bp |
2019 | 2018 | 2022 | 2021 | |||||||||||||||||
Planned reductions - January 1 | 69 | 47 | Planned reductions - January 1 | 60 | 319 | |||||||||||||||
Additional planned reductions | 674 | 206 | Additional planned reductions | 203 | 83 | |||||||||||||||
Actual reductions and reversals | (547 | ) | (184 | ) | Actual reductions and reversals | (161) | (342) | |||||||||||||
Planned reductions - December 31 | 196 | 69 | Planned reductions - December 31 | 102 | 60 |
(in millions) | Water Infrastructure | Applied Water | Measurement & Control Solutions | Corporate | Total | |||||||||||||||||||||||||||
Actions Commenced in 2022: | ||||||||||||||||||||||||||||||||
Total expected costs | $ | 6 | $ | 4 | $ | 4 | $ | — | $ | 14 | ||||||||||||||||||||||
Costs incurred during 2022 | 6 | 4 | 4 | — | 14 | |||||||||||||||||||||||||||
Total expected costs remaining | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Actions Commenced in 2021: | ||||||||||||||||||||||||||||||||
Total expected costs | $ | 3 | $ | — | $ | — | $ | — | $ | 3 | ||||||||||||||||||||||
Costs incurred during 2021 | 3 | — | — | — | 3 | |||||||||||||||||||||||||||
Costs incurred during 2022 | — | — | — | — | — | |||||||||||||||||||||||||||
Total expected costs remaining | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Actions Commenced in 2020: | ||||||||||||||||||||||||||||||||
Total expected costs | $ | 23 | $ | 6 | $ | 30 | $ | — | $ | 59 | ||||||||||||||||||||||
Costs incurred during 2020 | 19 | 4 | 30 | — | 53 | |||||||||||||||||||||||||||
Costs incurred during 2021 | 4 | 2 | — | — | 6 | |||||||||||||||||||||||||||
Costs incurred during 2022 | — | — | — | — | — | |||||||||||||||||||||||||||
Total expected costs remaining | $ | — | $ | — | $ | — | $ | — | $ | — |
(in millions) | Water Infrastructure | Applied Water | Measurement & Control Solutions | Corporate | Total | |||||||||||||||
Actions Commenced in 2019: | ||||||||||||||||||||
Total expected costs | $ | 19 | $ | 5 | $ | 28 | $ | — | $ | 52 | ||||||||||
Costs incurred during 2019 | 18 | 5 | 27 | — | 50 | |||||||||||||||
Total expected costs remaining | $ | 1 | $ | — | $ | 1 | $ | — | $ | 2 | ||||||||||
Actions Commenced in 2018: | ||||||||||||||||||||
Total expected costs | $ | 8 | $ | 1 | $ | 7 | $ | — | $ | 16 | ||||||||||
Costs incurred during 2018 | 7 | 1 | 7 | — | 15 | |||||||||||||||
Costs incurred during 2019 | 1 | — | — | — | 1 | |||||||||||||||
Total expected costs remaining | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Actions Commenced in 2017: | ||||||||||||||||||||
Total expected costs | $ | 12 | $ | 7 | $ | 4 | $ | — | $ | 23 | ||||||||||
Costs incurred during 2017 | 5 | 4 | 2 | — | 11 | |||||||||||||||
Costs incurred during 2018 | 2 | 1 | 1 | — | 4 | |||||||||||||||
Costs incurred during 2019 | 1 | — | 1 | — | 2 | |||||||||||||||
Total expected costs remaining | $ | 4 | $ | 2 | $ | — | $ | — | $ | 6 |
(In millions) | 2019 | 2018 | Change | (In millions) | 2022 | 2021 | Change | ||||||||||||||||||||||||
Water Infrastructure | Water Infrastructure | ||||||||||||||||||||||||||||||
Operating income | $ | 365 | $ | 359 | 1.7 | % | Operating income | $ | 418 | $ | 387 | 8.0 | % | ||||||||||||||||||
Operating margin | 16.8 | % | 16.5 | % | 30 | bp | Operating margin | 17.7 | % | 17.2 | % | 50 | bp | ||||||||||||||||||
Restructuring and realignment costs | 31 | 20 | 55.0 | % | Restructuring and realignment costs | 11 | 12 | (8.3) | % | ||||||||||||||||||||||
Special charges | — | 2 | NM | ||||||||||||||||||||||||||||
Adjusted operating income | $ | 396 | $ | 381 | 3.9 | % | Adjusted operating income | $ | 429 | $ | 399 | 7.5 | % | ||||||||||||||||||
Adjusted operating margin | 18.2 | % | 17.5 | % | 70 | bp | Adjusted operating margin | 18.1 | % | 17.8 | % | 30 | bp | ||||||||||||||||||
Applied Water | Applied Water | ||||||||||||||||||||||||||||||
Operating income | $ | 241 | $ | 236 | 2.1 | % | Operating income | $ | 258 | $ | 240 | 7.5 | % | ||||||||||||||||||
Operating margin | 15.6 | % | 15.4 | % | 20 | bp | Operating margin | 14.6 | % | 14.9 | % | (30) | bp | ||||||||||||||||||
Restructuring and realignment costs | 13 | 10 | 30.0 | % | Restructuring and realignment costs | 13 | 7 | 85.7 | % | ||||||||||||||||||||||
Special charges | Special charges | — | 1 | (100.0) | % | ||||||||||||||||||||||||||
Adjusted operating income | $ | 254 | $ | 246 | 3.3 | % | Adjusted operating income | $ | 271 | $ | 248 | 9.3 | % | ||||||||||||||||||
Adjusted operating margin | 16.5 | % | 16.0 | % | 50 | bp | Adjusted operating margin | 15.3 | % | 15.4 | % | (10) | bp | ||||||||||||||||||
Measurement & Control Solutions | Measurement & Control Solutions | ||||||||||||||||||||||||||||||
Operating (loss) income | $ | (67 | ) | $ | 118 | (156.8 | ) | % | |||||||||||||||||||||||
Operating income | Operating income | $ | 2 | $ | 12 | (83.3) | % | ||||||||||||||||||||||||
Operating margin | (4.4 | )% | 7.9 | % | (1,230 | ) | bp | Operating margin | 0.1 | % | 0.9 | % | (80) | bp | |||||||||||||||||
Restructuring and realignment costs | 38 | 18 | 111.1 | % | Restructuring and realignment costs | 10 | 3 | 233.3 | % | ||||||||||||||||||||||
Special charges | 159 | 5 | NM | Special charges | 14 | — | NM | % | |||||||||||||||||||||||
Adjusted operating income | $ | 130 | $ | 141 | (7.8 | ) | % | Adjusted operating income | $ | 26 | $ | 15 | 73.3 | % | |||||||||||||||||
Adjusted operating margin | 8.5 | % | 9.4 | % | (90 | ) | bp | Adjusted operating margin | 1.9 | % | 1.1 | % | 80 | bp | |||||||||||||||||
Corporate and other | Corporate and other | ||||||||||||||||||||||||||||||
Operating loss | $ | (53 | ) | $ | (59 | ) | (10.2 | ) | % | Operating loss | $ | (56) | $ | (54) | 3.7 | % | |||||||||||||||
Special charges | — | 5 | NM | % | Special charges | 2 | 3 | (33.3) | |||||||||||||||||||||||
Adjusted operating loss | $ | (53 | ) | $ | (54 | ) | (1.9 | ) | % | Adjusted operating loss | $ | (54) | $ | (51) | 5.9 | % | |||||||||||||||
Total Xylem | Total Xylem | ||||||||||||||||||||||||||||||
Operating income | $ | 486 | $ | 654 | (25.7 | ) | % | Operating income | $ | 622 | $ | 585 | 6.3 | % | |||||||||||||||||
Operating margin | 9.3 | % | 12.6 | % | (330 | ) | bp | Operating margin | 11.3 | % | 11.3 | % | — | bp | |||||||||||||||||
Restructuring and realignment costs | 82 | 48 | 70.8 | % | Restructuring and realignment costs | 34 | 22 | 54.5 | % | ||||||||||||||||||||||
Special charges | 159 | 12 | 1,225.0 | % | Special charges | 16 | 4 | 300.0 | % | ||||||||||||||||||||||
Adjusted operating income | $ | 727 | $ | 714 | 1.8 | % | Adjusted operating income | $ | 672 | $ | 611 | 10.0 | % | ||||||||||||||||||
Adjusted operating margin | 13.9 | % | 13.7 | % | 20 | bp | Adjusted operating margin | 12.2 | % | 11.8 | % | 40 | bp |
(in millions) | Year Ended December 31, | |||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||
Net Income | $ | 355 | $ | 427 | (17) | % | ||||||||||||||
Net Income margin | 6.4 | % | 8.2 | % | (180) | bp | ||||||||||||||
Depreciation | 111 | 118 | (6) | % | ||||||||||||||||
Amortization | 125 | 127 | (2) | % | ||||||||||||||||
Interest expense, net | 34 | 69 | (51) | % | ||||||||||||||||
Income tax expense | 85 | 84 | 1 | % | ||||||||||||||||
EBITDA | $ | 710 | $ | 825 | (14) | % | ||||||||||||||
Share-based compensation | 37 | 33 | 12 | % | ||||||||||||||||
Restructuring & realignment | 34 | 22 | 55 | % | ||||||||||||||||
U.K. pension settlement expense | 140 | — | 100 | % | ||||||||||||||||
Special charges | 20 | 12 | 67 | % | ||||||||||||||||
Gain from sale of business | (1) | (2) | (50) | % | ||||||||||||||||
Adjusted EBITDA | $ | 940 | $ | 890 | 6 | % | ||||||||||||||
Adjusted EBITDA margin | 17.0 | % | 17.1 | % | (10) | bp |
Year Ended December 31, 2022 | ||||||||||||||||||||
(in millions) | Water Infrastructure | Applied Water Systems | Measurement & Control Solutions | |||||||||||||||||
Operating Income | $ | 418 | $ | 258 | $ | 2 | ||||||||||||||
Gain from sale of business | — | — | 1 | |||||||||||||||||
Depreciation | 44 | 17 | 33 | |||||||||||||||||
Amortization | 9 | 2 | 104 | |||||||||||||||||
Other non-operating expense | (4) | (2) | (2) | |||||||||||||||||
EBITDA | $ | 467 | $ | 275 | $ | 138 | ||||||||||||||
Share-based compensation | 2 | 4 | 6 | |||||||||||||||||
Restructuring & realignment | 11 | 13 | 10 | |||||||||||||||||
Special charges | — | — | 14 | |||||||||||||||||
Gain from sale of business | — | — | (1) | |||||||||||||||||
Adjusted EBITDA | $ | 480 | $ | 292 | $ | 167 | ||||||||||||||
Adjusted EBITDA margin | 20.3 | % | 16.5 | % | 12.0 | % |
Year Ended December 31, 2021 | ||||||||||||||||||||
(in millions) | Water Infrastructure | Applied Water Systems | Measurement & Control Solutions | |||||||||||||||||
Operating Income | $ | 387 | $ | 240 | $ | 12 | ||||||||||||||
Gain from sale of business | — | 2 | — | |||||||||||||||||
Depreciation | 43 | 20 | 38 | |||||||||||||||||
Amortization | 8 | 2 | 107 | |||||||||||||||||
Other non-operating expense | (5) | (3) | (2) | |||||||||||||||||
EBITDA | $ | 433 | $ | 261 | $ | 155 | ||||||||||||||
Share-based compensation | 2 | 4 | 6 | |||||||||||||||||
Restructuring & realignment | 12 | 7 | 3 | |||||||||||||||||
Special charges | — | 1 | — | |||||||||||||||||
Gain from sale of business | — | (2) | — | |||||||||||||||||
Adjusted EBITDA | $ | 447 | $ | 271 | $ | 164 | ||||||||||||||
Adjusted EBITDA margin | 19.9 | % | 16.8 | % | 12.3 | % |
2022 versus 2021 | ||||||||||||||||||||
(in millions) | Water Infrastructure | Applied Water Systems | Measurement & Control Solutions | |||||||||||||||||
Operating Income (Loss) | $ | 31 | $ | 18 | $ | (10) | ||||||||||||||
Gain from sale of business | — | (2) | 1 | |||||||||||||||||
Depreciation | 1 | (3) | (5) | |||||||||||||||||
Amortization | 1 | — | (3) | |||||||||||||||||
Other non-operating expense | 1 | 1 | — | |||||||||||||||||
EBITDA | $ | 34 | $ | 14 | $ | (17) | ||||||||||||||
Share-based compensation | — | — | — | |||||||||||||||||
Restructuring & realignment | (1) | 6 | 7 | |||||||||||||||||
Special charges | — | (1) | 14 | |||||||||||||||||
Gain from sale of business | — | 2 | (1) | |||||||||||||||||
Adjusted EBITDA | $ | 33 | $ | 21 | $ | 3 | ||||||||||||||
Adjusted EBITDA margin | 0.4 | % | (0.3) | % | (0.3) | % |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | Change | (in millions) | 2022 | 2021 | Change | |||||||||||||||||||||
Operating activities | $ | 839 | $ | 586 | $ | 253 | Operating activities | $ | 596 | $ | 538 | $ | 58 | |||||||||||||||
Investing activities | (231 | ) | (643 | ) | 412 | Investing activities | (191) | (183) | (8) | |||||||||||||||||||
Financing activities | (177 | ) | (40 | ) | (137 | ) | Financing activities | (790) | (855) | 65 | ||||||||||||||||||
Foreign exchange (a) | (3 | ) | (21 | ) | 18 | Foreign exchange (a) | (20) | (26) | 6 | |||||||||||||||||||
Total | $ | 428 | $ | (118 | ) | $ | 546 | Total | $ | (405) | $ | (526) | $ | 121 |
(in millions) | 2020 | 2021 - 2022 | 2023 - 2024 | Thereafter | Total | ||||||||||||||
Debt obligations (1) | $ | 276 | $ | 600 | $ | 557 | $ | 900 | $ | 2,333 | |||||||||
Interest payments (1) (2) | 76 | 122 | 80 | 418 | 696 | ||||||||||||||
Lease obligations (3) | 65 | 87 | 50 | 62 | 264 | ||||||||||||||
Purchase obligations (4) | 95 | 7 | — | — | 102 | ||||||||||||||
Other long-term obligations reflected on the balance sheet | 1 | 23 | 23 | 8 | 55 | ||||||||||||||
Total commitments | $ | 513 | $ | 839 | $ | 710 | $ | 1,388 | $ | 3,450 |
2022 | 2021 | ||||||||||||||||||||||
U.S. | Int’l | U.S. | Int’l | ||||||||||||||||||||
Benefit Obligation Assumptions | |||||||||||||||||||||||
Discount rate | 5.25 | % | 4.13 | % | 3.00 | % | 1.55 | % | |||||||||||||||
Rate of future compensation increase | NM | 2.79 | % | NM | 2.84 | % | |||||||||||||||||
Net Periodic Benefit Cost Assumptions | |||||||||||||||||||||||
Discount rate | 3.00 | % | 1.55 | % | 2.50 | % | 1.06 | % | |||||||||||||||
Expected long-term return on plan assets | 5.50 | % | 2.79 | % | 6.50 | % | 2.60 | % | |||||||||||||||
Rate of future compensation increase | NM | 2.84 | % | NM | 2.79 | % |
2019 | 2018 | ||||||||||
U.S. | Int’l | U.S. | Int’l | ||||||||
Benefit Obligation Assumptions | |||||||||||
Discount rate | 3.25 | % | 1.80 | % | 4.50 | % | 2.60 | % | |||
Rate of future compensation increase | NM | 2.94 | % | NM | 2.92 | % | |||||
Net Periodic Benefit Cost Assumptions | |||||||||||
Discount rate | 4.50 | % | 2.60 | % | 3.75 | % | 2.43 | % | |||
Expected long-term return on plan assets | 7.75 | % | 6.96 | % | 8.00 | % | 7.23 | % | |||
Rate of future compensation increase | NM | 2.92 | % | NM | 2.93 | % |
2019 | 2018 | ||||
Expected long-term rate of return on plan assets | 7.09 | % | 7.34 | % | |
Actual rate of return on plan assets | 12.59 | % | (3.85 | )% |
Page No. | |||||
Audited Consolidated Financial Statements: | |||||
Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34) | |||||
Notes to Consolidated Financial Statements: | |||||
–Historical revenues –Internal communications to management and |
Year Ended December 31, | 2022 | 2021 | 2020 | ||||||||||||||
Revenue | $ | 5,522 | $ | 5,195 | $ | 4,876 | |||||||||||
Cost of revenue | 3,438 | 3,220 | 3,046 | ||||||||||||||
Gross profit | 2,084 | 1,975 | 1,830 | ||||||||||||||
Selling, general and administrative expenses | 1,227 | 1,179 | 1,143 | ||||||||||||||
Research and development expenses | 206 | 204 | 187 | ||||||||||||||
Restructuring and asset impairment charges | 29 | 7 | 75 | ||||||||||||||
Goodwill impairment charge | — | — | 58 | ||||||||||||||
Operating income | 622 | 585 | 367 | ||||||||||||||
Interest expense | 50 | 76 | 77 | ||||||||||||||
U.K. pension settlement expense | 140 | — | — | ||||||||||||||
Other non-operating income (expense), net | 7 | — | (5) | ||||||||||||||
Gain on sale of businesses | 1 | 2 | — | ||||||||||||||
Income before taxes | 440 | 511 | 285 | ||||||||||||||
Income tax expense | 85 | 84 | 31 | ||||||||||||||
Net income | $ | 355 | $ | 427 | $ | 254 | |||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 1.97 | $ | 2.37 | $ | 1.41 | |||||||||||
Diluted | $ | 1.96 | $ | 2.35 | $ | 1.40 | |||||||||||
Weighted average number of shares: | |||||||||||||||||
Basic | 180.2 | 180.2 | 180.1 | ||||||||||||||
Diluted | 181.0 | 181.5 | 181.1 | ||||||||||||||
Year Ended December 31, | 2019 | 2018 | 2017 | ||||||||
Revenue | $ | 5,249 | $ | 5,207 | $ | 4,707 | |||||
Cost of revenue | 3,203 | 3,181 | 2,860 | ||||||||
Gross profit | 2,046 | 2,026 | 1,847 | ||||||||
Selling, general and administrative expenses | 1,158 | 1,161 | 1,089 | ||||||||
Research and development expenses | 191 | 189 | 181 | ||||||||
Restructuring and asset impairment charges | 63 | 22 | 25 | ||||||||
Goodwill impairment charge | 148 | — | — | ||||||||
Operating income | 486 | 654 | 552 | ||||||||
Interest expense | 67 | 82 | 82 | ||||||||
Other non-operating (expense) income, net | (4 | ) | 13 | 6 | |||||||
Gain (loss) on sale of businesses | 1 | — | (10 | ) | |||||||
Income before taxes | 416 | 585 | 466 | ||||||||
Income tax expense | 15 | 36 | 136 | ||||||||
Net income | 401 | 549 | 330 | ||||||||
Less: Net loss attributable to non-controlling interests | — | — | (1 | ) | |||||||
Net income attributable to Xylem | $ | 401 | $ | 549 | $ | 331 | |||||
Earnings per share: | |||||||||||
Basic | $ | 2.23 | $ | 3.05 | $ | 1.84 | |||||
Diluted | $ | 2.21 | $ | 3.03 | $ | 1.83 | |||||
Weighted average number of shares: | |||||||||||
Basic | 180.0 | 179.8 | 179.6 | ||||||||
Diluted | 181.2 | 181.1 | 180.9 |
Year Ended December 31, | 2022 | 2021 | 2020 | ||||||||||||||
Net income | $ | 355 | $ | 427 | $ | 254 | |||||||||||
Other comprehensive income (loss), before tax: | |||||||||||||||||
Foreign currency translation adjustment | (53) | 20 | (23) | ||||||||||||||
Net change in derivative hedge agreements: | |||||||||||||||||
Unrealized gain (loss) | (24) | (10) | 9 | ||||||||||||||
Amount of (gain) loss reclassified into net income | 21 | 4 | (3) | ||||||||||||||
Net change in post-retirement benefit plans: | |||||||||||||||||
Net gain (loss) | 101 | 51 | (78) | ||||||||||||||
Prior service credit | — | — | 5 | ||||||||||||||
Amortization of prior service credit cost | (2) | (3) | (3) | ||||||||||||||
Amortization of net actuarial loss into net income | 12 | 23 | 19 | ||||||||||||||
U.K. pension settlement | 137 | — | — | ||||||||||||||
Foreign currency translation adjustment | 39 | 11 | (19) | ||||||||||||||
Other comprehensive income (loss), before tax | 231 | 96 | (93) | ||||||||||||||
Income tax (benefit) expense related to other comprehensive loss | 86 | 54 | (54) | ||||||||||||||
Other comprehensive income (loss), net of tax | 145 | 42 | (39) | ||||||||||||||
Comprehensive income | $ | 500 | $ | 469 | $ | 215 | |||||||||||
Less: comprehensive (loss) gain attributable to noncontrolling interests | — | — | (1) | ||||||||||||||
Comprehensive income attributable to Xylem | $ | 500 | $ | 469 | $ | 216 |
Year Ended December 31, | 2019 | 2018 | 2017 | ||||||||
Net income | $ | 401 | $ | 549 | $ | 330 | |||||
Other comprehensive (loss) income, before tax: | |||||||||||
Foreign currency translation adjustment | 28 | (85 | ) | 79 | |||||||
Net change in derivative hedge agreements: | |||||||||||
Unrealized (loss) gain | (14 | ) | (8 | ) | 9 | ||||||
Amount of loss (gain) reclassified into net income | 12 | 4 | (5 | ) | |||||||
Net change in postretirement benefit plans: | |||||||||||
Net loss | (83 | ) | (37 | ) | (19 | ) | |||||
Prior service credit | — | — | 1 | ||||||||
Amortization of prior service credit cost | (4 | ) | (4 | ) | (3 | ) | |||||
Amortization of net actuarial loss into net income | 12 | 13 | 13 | ||||||||
Settlement | 9 | 1 | 1 | ||||||||
Foreign currency translation adjustment | (3 | ) | 15 | (18 | ) | ||||||
Other comprehensive (loss) income, before tax | (43 | ) | (101 | ) | 58 | ||||||
Income tax (benefit) expense related to other comprehensive loss | (5 | ) | 10 | (50 | ) | ||||||
Other comprehensive (loss) income, net of tax | (38 | ) | (111 | ) | 108 | ||||||
Comprehensive income | $ | 363 | $ | 438 | $ | 438 | |||||
Less: comprehensive gain (loss) attributable to noncontrolling interests | 1 | (2 | ) | — | |||||||
Comprehensive income attributable to Xylem | $ | 362 | $ | 440 | $ | 438 |
December 31, | 2022 | 2021 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 944 | $ | 1,349 | |||||||
Receivables, less allowances for discounts, returns and credit losses of $50 and $44 in 2022 and 2021, respectively | 1,096 | 953 | |||||||||
Inventories | 799 | 700 | |||||||||
Prepaid and other current assets | 173 | 158 | |||||||||
Total current assets | 3,012 | 3,160 | |||||||||
Property, plant and equipment, net | 630 | 644 | |||||||||
Goodwill | 2,719 | 2,792 | |||||||||
Other intangible assets, net | 930 | 1,016 | |||||||||
Other non-current assets | 661 | 664 | |||||||||
Total assets | $ | 7,952 | $ | 8,276 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 723 | $ | 639 | |||||||
Accrued and other current liabilities | 867 | 752 | |||||||||
Total current liabilities | 1,590 | 1,391 | |||||||||
Long-term debt, net | 1,880 | 2,440 | |||||||||
Accrued post-retirement benefit obligations | 286 | 438 | |||||||||
Deferred income tax liabilities | 222 | 287 | |||||||||
Other non-current accrued liabilities | 471 | 494 | |||||||||
Total liabilities | 4,449 | 5,050 | |||||||||
Commitment and Contingencies (Note 19) | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock — par value $0.01 per share: | |||||||||||
Authorized 750.0 shares, issued 196.0 and 195.6 shares in 2022 and 2021, respectively | 2 | 2 | |||||||||
Capital in excess of par value | 2,134 | 2,089 | |||||||||
Retained earnings | 2,292 | 2,154 | |||||||||
Treasury stock – at cost 15.8 shares and 15.2 shares in 2022 and 2021, respectively | (708) | (656) | |||||||||
Accumulated other comprehensive loss | (226) | (371) | |||||||||
Total stockholders’ equity | 3,494 | 3,218 | |||||||||
Non-controlling interest | 9 | 8 | |||||||||
Total equity | 3,503 | 3,226 | |||||||||
Total liabilities and stockholders’ equity | $ | 7,952 | $ | 8,276 |
December 31, | 2019 | 2018 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 724 | $ | 296 | |||
Receivables, less allowances for discounts, returns and doubtful accounts of $35 and $35 in 2019 and 2018, respectively | 1,036 | 1,031 | |||||
Inventories | 539 | 595 | |||||
Prepaid and other current assets | 151 | 172 | |||||
Total current assets | 2,450 | 2,094 | |||||
Property, plant and equipment, net | 658 | 656 | |||||
Goodwill | 2,839 | 2,976 | |||||
Other intangible assets, net | 1,174 | 1,232 | |||||
Other non-current assets | 589 | 264 | |||||
Total assets | $ | 7,710 | $ | 7,222 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 597 | $ | 586 | |||
Accrued and other current liabilities | 628 | 546 | |||||
Short-term borrowings and current maturities of long-term debt | 276 | 257 | |||||
Total current liabilities | 1,501 | 1,389 | |||||
Long-term debt, net | 2,040 | 2,051 | |||||
Accrued postretirement benefits | 445 | 400 | |||||
Deferred income tax liabilities | 310 | 303 | |||||
Other non-current accrued liabilities | 447 | 297 | |||||
Total liabilities | 4,743 | 4,440 | |||||
Commitment and Contingencies (Note 20) | |||||||
Stockholders’ equity: | |||||||
Common stock — par value $0.01 per share: | |||||||
Authorized 750.0 shares, issued 193.9 and 192.9 shares in 2019 and 2018, respectively | 2 | 2 | |||||
Capital in excess of par value | 1,991 | 1,950 | |||||
Retained earnings | 1,866 | 1,639 | |||||
Treasury stock – at cost 13.7 shares and 13.2 shares in 2019 and 2018, respectively | (527 | ) | (487 | ) | |||
Accumulated other comprehensive loss | (375 | ) | (336 | ) | |||
Total stockholders’ equity | 2,957 | 2,768 | |||||
Non-controlling interest | 10 | 14 | |||||
Total equity | 2,967 | 2,782 | |||||
Total liabilities and stockholders’ equity | $ | 7,710 | $ | 7,222 |
Year Ended December 31, | 2019 | 2018 | 2017 | Year Ended December 31, | 2022 | 2021 | 2020 | |||||||||||||||||||||
Operating Activities | Operating Activities | |||||||||||||||||||||||||||
Net income | $ | 401 | $ | 549 | $ | 330 | Net income | $ | 355 | $ | 427 | $ | 254 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||||||
Depreciation | 117 | 117 | 109 | Depreciation | 111 | 118 | 117 | |||||||||||||||||||||
Amortization | 140 | 144 | 125 | Amortization | 125 | 127 | 134 | |||||||||||||||||||||
Deferred income taxes | (77 | ) | (47 | ) | (33 | ) | Deferred income taxes | (64) | 10 | (31) | ||||||||||||||||||
Share-based compensation | 29 | 30 | 21 | Share-based compensation | 37 | 33 | 26 | |||||||||||||||||||||
Restructuring and asset impairment charges | 63 | 22 | 25 | Restructuring and asset impairment charges | 29 | 7 | 75 | |||||||||||||||||||||
Goodwill impairment charge | 148 | — | — | Goodwill impairment charge | — | — | 58 | |||||||||||||||||||||
(Gain)/loss from sale of businesses | (1 | ) | — | 10 | ||||||||||||||||||||||||
U.K. pension settlement expense | U.K. pension settlement expense | 140 | — | — | ||||||||||||||||||||||||
Gain from sale of businesses | Gain from sale of businesses | (1) | (2) | — | ||||||||||||||||||||||||
Other, net | 9 | 9 | 19 | Other, net | (4) | 8 | 46 | |||||||||||||||||||||
Payments for restructuring | (30 | ) | (21 | ) | (28 | ) | Payments for restructuring | (11) | (25) | (36) | ||||||||||||||||||
Contributions to postretirement benefit plans | (19 | ) | (41 | ) | (33 | ) | ||||||||||||||||||||||
Contributions to post-retirement benefit plans | Contributions to post-retirement benefit plans | (19) | (29) | (27) | ||||||||||||||||||||||||
Changes in assets and liabilities (net of acquisitions): | Changes in assets and liabilities (net of acquisitions): | |||||||||||||||||||||||||||
Changes in receivables | (23 | ) | (103 | ) | (79 | ) | Changes in receivables | (192) | (70) | 109 | ||||||||||||||||||
Changes in inventories | 47 | (97 | ) | 27 | Changes in inventories | (147) | (167) | (5) | ||||||||||||||||||||
Changes in accounts payable | 29 | 51 | 50 | Changes in accounts payable | 117 | 81 | (39) | |||||||||||||||||||||
Changes in accrued liabilities | 15 | (6 | ) | 28 | Changes in accrued liabilities | 57 | 7 | 101 | ||||||||||||||||||||
Changes in accrued taxes | (13 | ) | — | 104 | Changes in accrued taxes | 57 | (9) | 20 | ||||||||||||||||||||
Net changes in other assets and liabilities | 4 | (21 | ) | 11 | Net changes in other assets and liabilities | 6 | 22 | 22 | ||||||||||||||||||||
Net Cash — Operating activities | 839 | 586 | 686 | Net Cash — Operating activities | 596 | 538 | 824 | |||||||||||||||||||||
Investing Activities | Investing Activities | |||||||||||||||||||||||||||
Capital expenditures | (226 | ) | (237 | ) | (170 | ) | Capital expenditures | (208) | (208) | (183) | ||||||||||||||||||
Proceeds from the sale of property, plant and equipment | — | — | 1 | |||||||||||||||||||||||||
Acquisitions of businesses and assets, net of cash acquired | (18 | ) | (433 | ) | (33 | ) | ||||||||||||||||||||||
Proceeds from sale of businesses | — | 22 | 16 | Proceeds from sale of businesses | 1 | 10 | — | |||||||||||||||||||||
Cash received from investments | 11 | 11 | 10 | Cash received from investments | 8 | 3 | 200 | |||||||||||||||||||||
Cash paid for investments | (7 | ) | (11 | ) | (11 | ) | Cash paid for investments | (11) | — | (200) | ||||||||||||||||||
Cash received from cross currency swaps | 9 | — | — | |||||||||||||||||||||||||
Cash received from cross-currency swaps | Cash received from cross-currency swaps | 28 | 14 | 12 | ||||||||||||||||||||||||
Settlement of currency forward agreement | Settlement of currency forward agreement | (10) | — | — | ||||||||||||||||||||||||
Other, net | — | 5 | 6 | Other, net | 1 | (2) | 2 | |||||||||||||||||||||
Net Cash — Investing activities | (231 | ) | (643 | ) | (181 | ) | Net Cash — Investing activities | (191) | (183) | (169) | ||||||||||||||||||
Financing Activities | Financing Activities | |||||||||||||||||||||||||||
Short-term debt issued, net | 281 | 335 | — | Short-term debt issued, net | — | — | 359 | |||||||||||||||||||||
Short-term debt repaid, net | (254 | ) | (52 | ) | (282 | ) | Short-term debt repaid, net | — | — | (640) | ||||||||||||||||||
Long-term debt issued, net | — | 1 | — | Long-term debt issued, net | — | — | 985 | |||||||||||||||||||||
Long-term debt repaid, net | — | (120 | ) | — | Long-term debt repaid, net | (527) | (600) | — | ||||||||||||||||||||
Repurchase of common stock | (40 | ) | (59 | ) | (25 | ) | Repurchase of common stock | (52) | (68) | (61) | ||||||||||||||||||
Proceeds from exercise of employee stock options | 13 | 7 | 16 | Proceeds from exercise of employee stock options | 8 | 19 | 20 | |||||||||||||||||||||
Dividends paid | (174 | ) | (152 | ) | (130 | ) | Dividends paid | (217) | (203) | (188) | ||||||||||||||||||
Other, net | (3 | ) | — | — | Other, net | (2) | (3) | (2) | ||||||||||||||||||||
Net Cash — Financing activities | (177 | ) | (40 | ) | (421 | ) | Net Cash — Financing activities | (790) | (855) | 473 | ||||||||||||||||||
Effect of exchange rate changes on cash | (3 | ) | (21 | ) | 22 | Effect of exchange rate changes on cash | (20) | (26) | 23 | |||||||||||||||||||
Net change in cash and cash equivalents | 428 | (118 | ) | 106 | Net change in cash and cash equivalents | (405) | (526) | 1,151 | ||||||||||||||||||||
Cash and cash equivalents at beginning of year | 296 | 414 | 308 | Cash and cash equivalents at beginning of year | 1,349 | 1,875 | 724 | |||||||||||||||||||||
Cash and cash equivalents at end of year | $ | 724 | $ | 296 | $ | 414 | Cash and cash equivalents at end of year | $ | 944 | $ | 1,349 | $ | 1,875 | |||||||||||||||
Supplemental disclosure of cash flow information: | Supplemental disclosure of cash flow information: | |||||||||||||||||||||||||||
Cash paid during the year for: | Cash paid during the year for: | |||||||||||||||||||||||||||
Interest | $ | 77 | $ | 78 | $ | 78 | Interest | $ | 76 | $ | 99 | $ | 77 | |||||||||||||||
Income taxes (net of refunds received) | $ | 107 | $ | 75 | $ | 57 | Income taxes (net of refunds received) | $ | 91 | $ | 83 | $ | 41 |
Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non-Controlling Interest | Total | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | 2 | $ | 1,991 | $ | 1,866 | $ | (375) | $ | (527) | $ | 10 | $ | 2,967 | |||||||||||||||||||||||||||
Cumulative effect of change in accounting principle | (2) | (2) | |||||||||||||||||||||||||||||||||||||||
Net income | 254 | 254 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net | (38) | (1) | (39) | ||||||||||||||||||||||||||||||||||||||
Distribution to minority shareholders | (1) | (1) | |||||||||||||||||||||||||||||||||||||||
Dividends declared ($1.04 per share) | (188) | (188) | |||||||||||||||||||||||||||||||||||||||
Stock incentive plan activity | 46 | (11) | 35�� | ||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (50) | (50) | |||||||||||||||||||||||||||||||||||||||
Acquisition activity | — | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 2 | $ | 2,037 | $ | 1,930 | $ | (413) | $ | (588) | $ | 8 | $ | 2,976 | |||||||||||||||||||||||||||
Net Income | 427 | 427 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net | 42 | 42 | |||||||||||||||||||||||||||||||||||||||
Dividends declared ($1.12 per share) | (203) | (203) | |||||||||||||||||||||||||||||||||||||||
Stock incentive plan activity | 52 | (8) | 44 | ||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (60) | (60) | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 2 | $ | 2,089 | $ | 2,154 | $ | (371) | $ | (656) | $ | 8 | $ | 3,226 | |||||||||||||||||||||||||||
Net income | 355 | 355 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net | 145 | — | 145 | ||||||||||||||||||||||||||||||||||||||
Other activity | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
Dividends declared ($1.20 per share) | (217) | (217) | |||||||||||||||||||||||||||||||||||||||
Stock incentive plan activity | 45 | (6) | 39 | ||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (46) | (46) | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | 2 | $ | 2,134 | $ | 2,292 | $ | (226) | $ | (708) | $ | 9 | $ | 3,503 |
Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non-Controlling Interest | Total | |||||||||||||||||||||
Balance at December 31, 2016 | $ | 2 | $ | 1,876 | $ | 1,033 | $ | (318 | ) | $ | (403 | ) | $ | 17 | $ | 2,207 | |||||||||||
Cumulative effect of change in accounting principle | (7 | ) | (7 | ) | |||||||||||||||||||||||
Net income | 331 | (1 | ) | 330 | |||||||||||||||||||||||
Other comprehensive income, net | 108 | 108 | |||||||||||||||||||||||||
Dividends declared ($.72 per share) | (130 | ) | (130 | ) | |||||||||||||||||||||||
Stock incentive plan activity | 36 | (5 | ) | 31 | |||||||||||||||||||||||
Repurchase of common stock | (20 | ) | (20 | ) | |||||||||||||||||||||||
Balance at December 31, 2017 | $ | 2 | $ | 1,912 | $ | 1,227 | $ | (210 | ) | $ | (428 | ) | $ | 16 | $ | 2,519 | |||||||||||
Cumulative effect of change in accounting principle | 14 | (17 | ) | (3 | ) | ||||||||||||||||||||||
Net income | 549 | 549 | |||||||||||||||||||||||||
Other comprehensive loss, net | (109 | ) | (2 | ) | (111 | ) | |||||||||||||||||||||
Dividends declared ($.84 per share) | (151 | ) | (151 | ) | |||||||||||||||||||||||
Stock incentive plan activity | 38 | (9 | ) | 29 | |||||||||||||||||||||||
Repurchase of common stock | (50 | ) | (50 | ) | |||||||||||||||||||||||
Balance at December 31, 2018 | $ | 2 | $ | 1,950 | $ | 1,639 | $ | (336 | ) | $ | (487 | ) | $ | 14 | $ | 2,782 | |||||||||||
Sale of business | (2 | ) | (2 | ) | |||||||||||||||||||||||
Net income | 401 | 401 | |||||||||||||||||||||||||
Other comprehensive loss, net | (39 | ) | 1 | (38 | ) | ||||||||||||||||||||||
Distribution to minority shareholders | (3 | ) | (3 | ) | |||||||||||||||||||||||
Dividends declared ($.96 per share) | (174 | ) | (174 | ) | |||||||||||||||||||||||
Stock incentive plan activity | 41 | (15 | ) | 26 | |||||||||||||||||||||||
Repurchase of common stock | (25 | ) | (25 | ) | |||||||||||||||||||||||
Balance at December 31, 2019 | $ | 2 | $ | 1,991 | $ | 1,866 | $ | (375 | ) | $ | (527 | ) | $ | 10 | $ | 2,967 |
Estimated Life | |||||
Buildings and improvements | 5 to 40 years | ||||
Machinery and equipment | 2 to 10 years | ||||
Furniture and fixtures | 3 to 7 years | ||||
Equipment held for lease or rental | 2 to 10 years |
(in millions) | Amount | ||
Cash | $ | 14 | |
Receivables | 23 | ||
Inventories | 4 | ||
Prepaid and other current assets | 2 | ||
Property, plant and equipment | 22 | ||
Intangible assets | 149 | ||
Other long-term assets | 1 | ||
Accounts payable | (3 | ) | |
Accrued and other current liabilities | (12 | ) | |
Deferred income tax liabilities | (25 | ) | |
Other non-current accrued liabilities | (2 | ) | |
Total identifiable net assets | 173 | ||
Goodwill | 261 | ||
Total consideration | $ | 434 |
Category | Life | Amount (in millions) | ||||
Customer Relationships | 17 - 18 years | $ | 84 | |||
Technology | 3 - 10 years | 38 | ||||
Tradenames | 20 years | 21 | ||||
Internally Developed Software | 3 years | 6 | ||||
Total | $ | 149 |
(in millions) | Year Ended December 31, | |
2018 | 2017 | |
Revenue | $5,212 | $4,809 |
Net income | $546 | $323 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Revenue from contracts with customers | $ | 5,294 | $ | 4,998 | $ | 4,681 | |||||||||||
Lease Revenue | 228 | 197 | 195 | ||||||||||||||
Total | $ | 5,522 | $ | 5,195 | $ | 4,876 |
Year Ended December 31, | |||||||
(in millions) | 2019 | 2018 | |||||
Revenue from contracts with customers | $ | 5,002 | $ | 4,963 | |||
Lease Revenue | 247 | 244 | |||||
Total | $ | 5,249 | $ | 5,207 |
Year Ended December 31, | |||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||||||||
Water Infrastructure | |||||||||||||||||||||||
Transport | $ | 1,715 | $ | 1,619 | $ | 1,484 | |||||||||||||||||
Treatment | 421 | 431 | 400 | ||||||||||||||||||||
Applied Water | |||||||||||||||||||||||
Commercial Building Services | 659 | 609 | 558 | ||||||||||||||||||||
Residential Building Services | 306 | 268 | 238 | ||||||||||||||||||||
Industrial Water | 802 | 736 | 638 | ||||||||||||||||||||
Measurement and Control Solutions | |||||||||||||||||||||||
Water | 1,126 | 1,055 | 1,039 | ||||||||||||||||||||
Energy | 265 | 280 | 324 | ||||||||||||||||||||
Total | $ | 5,294 | $ | 4,998 | $ | 4,681 |
Year Ended December 31, | |||||||
(in millions) | 2019 | 2018 | |||||
Water Infrastructure | |||||||
Transport | $ | 1,533 | $ | 1,535 | |||
Treatment | 397 | 397 | |||||
Applied Water | |||||||
Building Services | 848 | 828 | |||||
Industrial Water | 693 | 706 | |||||
Measurement and Control Solutions | |||||||
Water | 768 | 692 | |||||
Energy | 337 | 338 | |||||
Software as a Service/Other | 99 | 123 | |||||
Test | 327 | 344 | |||||
Total | $ | 5,002 | $ | 4,963 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Water Infrastructure | |||||||||||||||||
United States | $ | 664 | $ | 556 | $ | 558 | |||||||||||
Western Europe | 757 | 753 | 675 | ||||||||||||||
Emerging Markets (a) | 495 | 537 | 468 | ||||||||||||||
Other | 220 | 204 | 183 | ||||||||||||||
Applied Water | |||||||||||||||||
United States | 914 | 804 | 754 | ||||||||||||||
Western Europe | 380 | 370 | 316 | ||||||||||||||
Emerging Markets (a) | 349 | 324 | 260 | ||||||||||||||
Other | 124 | 115 | 104 | ||||||||||||||
Measurement and Control Solutions | |||||||||||||||||
United States | 857 | 796 | 856 | ||||||||||||||
Western Europe | 240 | 256 | 234 | ||||||||||||||
Emerging Markets (a) | 198 | 189 | 177 | ||||||||||||||
Other | 96 | 94 | 96 | ||||||||||||||
Total | $ | 5,294 | $ | 4,998 | $ | 4,681 |
Year Ended December 31, | |||||||
(in millions) | 2019 | 2018 | |||||
Water Infrastructure | |||||||
United States | $ | 593 | $ | 539 | |||
Europe | 729 | 758 | |||||
Asia Pacific | 358 | 344 | |||||
Other | 250 | 291 | |||||
Applied Water | |||||||
United States | 816 | 797 | |||||
Europe | 362 | 386 | |||||
Asia Pacific | 164 | 153 | |||||
Other | 199 | 198 | |||||
Measurement and Control Solutions | |||||||
United States | 972 | 913 | |||||
Europe | 257 | 273 | |||||
Asia Pacific | 118 | 144 | |||||
Other | 184 | 167 | |||||
Total | $ | 5,002 | $ | 4,963 |
(in millions) | Contract Assets (a) | Contract Liabilities | ||||||||||||||||||
Balance at 1/1/2021 | $ | 117 | $ | 166 | ||||||||||||||||
Additions, net | 112 | 117 | ||||||||||||||||||
Revenue recognized from opening balance | — | (117) | ||||||||||||||||||
Billings transferred to accounts receivable | (103) | — | ||||||||||||||||||
Other | (1) | (2) | ||||||||||||||||||
Balance at 1/1/2022 | $ | 125 | $ | 164 | ||||||||||||||||
Additions, net | 115 | 137 | ||||||||||||||||||
Revenue recognized from opening balance | — | (109) | ||||||||||||||||||
Billings transferred to accounts receivable | (82) | — | ||||||||||||||||||
Other | (7) | (9) | ||||||||||||||||||
Balance at 12/31/2022 | $ | 151 | $ | 183 |
(in millions) | Contract Assets (a) | Contract Liabilities | ||||
Balance at 1/1/2018 | $ | 89 | $ | 107 | ||
Additions, net | 87 | 101 | ||||
Revenue recognized from opening balance | — | (89 | ) | |||
Billings | (76 | ) | — | |||
Other | (4 | ) | (6 | ) | ||
Balance at 1/1/2019 | $ | 96 | $ | 113 | ||
Additions, net | 81 | 114 | ||||
Revenue recognized from opening balance | — | (91 | ) | |||
Billings | (80 | ) | — | |||
Other | 9 | (1 | ) | |||
Balance at 12/31/2019 | $ | 106 | $ | 135 |
Year Ended December 31, | ||||||||||||
(in millions) | 2019 | 2018 | 2017 | |||||||||
By component: | ||||||||||||
Severance and other charges | $ | 51 | $ | 19 | $ | 20 | ||||||
Lease related charges | 1 | 1 | — | |||||||||
Other restructuring charges | 2 | 1 | 2 | |||||||||
Reversal of restructuring accruals | (1 | ) | (1 | ) | (2 | ) | ||||||
Total restructuring charges | 53 | 20 | 20 | |||||||||
Asset impairment charges | 10 | 2 | 5 | |||||||||
Total restructuring and asset impairment charges | $ | 63 | $ | 22 | $ | 25 | ||||||
By segment: | ||||||||||||
Water Infrastructure | $ | 20 | $ | 11 | $ | 7 | ||||||
Applied Water | 5 | 2 | 13 | |||||||||
Measurement & Control Solutions | 38 | 9 | 5 | |||||||||
Corporate and other | — | — | — |
Year Ended December 31, | ||||||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | |||||||||||||||||
By component: | ||||||||||||||||||||
Severance and other charges | $ | 15 | $ | 10 | $ | 36 | ||||||||||||||
Asset impairment | — | 1 | 18 | |||||||||||||||||
Other restructuring charges | — | 1 | 1 | |||||||||||||||||
Reversal of restructuring accruals | — | (6) | (1) | |||||||||||||||||
Total restructuring costs | 15 | 6 | 54 | |||||||||||||||||
Asset impairment charges | 14 | 1 | 21 | |||||||||||||||||
Total restructuring and asset impairment charges | $ | 29 | $ | 7 | $ | 75 | ||||||||||||||
By segment: | ||||||||||||||||||||
Water Infrastructure | $ | 6 | $ | 8 | $ | 20 | ||||||||||||||
Applied Water | 4 | 2 | 4 | |||||||||||||||||
Measurement & Control Solutions | 19 | (3) | 51 | |||||||||||||||||
(in millions) | 2019 | 2018 | (in millions) | 2022 | 2021 | |||||||||||||||||
Restructuring accruals - January 1 | $ | 5 | $ | 7 | Restructuring accruals - January 1 | $ | 7 | $ | 29 | |||||||||||||
Restructuring charges | 53 | 20 | ||||||||||||||||||||
Restructuring costs | Restructuring costs | 15 | 6 | |||||||||||||||||||
Cash payments | (30 | ) | (21 | ) | Cash payments | (11) | (25) | |||||||||||||||
Asset impairment | Asset impairment | — | (1) | |||||||||||||||||||
Foreign currency and other | (1 | ) | (1 | ) | Foreign currency and other | (1) | (2) | |||||||||||||||
Restructuring accruals - December 31 | $ | 27 | $ | 5 | Restructuring accruals - December 31 | $ | 10 | $ | 7 | |||||||||||||
By segment: | By segment: | |||||||||||||||||||||
Water Infrastructure | $ | 1 | $ | 1 | Water Infrastructure | $ | 1 | $ | 1 | |||||||||||||
Applied Water | — | 1 | Applied Water | — | 1 | |||||||||||||||||
Measurement & Control Solutions | 19 | 2 | Measurement & Control Solutions | 3 | 4 | |||||||||||||||||
Regional selling locations (a) | 7 | 1 | Regional selling locations (a) | 4 | 1 | |||||||||||||||||
Corporate and other | Corporate and other | 2 | — |
(in millions) | Water Infrastructure | Applied Water | Measurement & Control Solutions | Corporate | Total | |||||||||||||||||||||||||||
Actions Commenced in 2022: | ||||||||||||||||||||||||||||||||
Total expected costs | $ | 6 | $ | 4 | $ | 4 | $ | — | $ | 14 | ||||||||||||||||||||||
Costs incurred during 2022 | 6 | 4 | 4 | — | 14 | |||||||||||||||||||||||||||
Total expected costs remaining | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Actions Commenced in 2021: | ||||||||||||||||||||||||||||||||
Total expected costs | $ | 3 | $ | — | $ | — | $ | — | $ | 3 | ||||||||||||||||||||||
Costs incurred during 2021 | 3 | — | — | — | 3 | |||||||||||||||||||||||||||
Costs incurred during 2022 | — | — | — | — | — | |||||||||||||||||||||||||||
Total expected costs remaining | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Actions Commenced in 2020: | ||||||||||||||||||||||||||||||||
Total expected costs | $ | 23 | $ | 6 | $ | 30 | $ | — | $ | 59 | ||||||||||||||||||||||
Costs incurred during 2020 | 19 | 4 | 30 | — | 53 | |||||||||||||||||||||||||||
Costs incurred during 2021 | 4 | 2 | — | — | 6 | |||||||||||||||||||||||||||
Costs incurred during 2022 | — | — | — | — | — | |||||||||||||||||||||||||||
Total expected costs remaining | $ | — | $ | — | $ | — | $ | — | $ | — |
(in millions) | Water Infrastructure | Applied Water | Measurement & Control Solutions | Corporate | Total | |||||||||||||||
Actions Commenced in 2019: | ||||||||||||||||||||
Total expected costs | $ | 19 | $ | 5 | $ | 28 | $ | — | $ | 52 | ||||||||||
Costs incurred during 2019 | 18 | 5 | 27 | — | 50 | |||||||||||||||
Total expected costs remaining | $ | 1 | $ | — | $ | 1 | $ | — | $ | 2 | ||||||||||
Actions Commenced in 2018: | ||||||||||||||||||||
Total expected costs | $ | 8 | $ | 1 | $ | 7 | $ | — | $ | 16 | ||||||||||
Costs incurred during 2018 | 7 | 1 | 7 | — | 15 | |||||||||||||||
Costs incurred during 2019 | 1 | — | — | — | 1 | |||||||||||||||
Total expected costs remaining | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Actions Commenced in 2017: | ||||||||||||||||||||
Total expected costs | $ | 12 | $ | 7 | $ | 4 | $ | — | $ | 23 | ||||||||||
Costs incurred during 2017 | 5 | 4 | 2 | — | 11 | |||||||||||||||
Costs incurred during 2018 | 2 | 1 | 1 | — | 4 | |||||||||||||||
Costs incurred during 2019 | 1 | — | 1 | — | 2 | |||||||||||||||
Total expected costs remaining | $ | 4 | $ | 2 | $ | — | $ | — | $ | 6 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2017 | (in millions) | 2022 | 2021 | 2020 | |||||||||||||||||||||
Interest income | $ | 5 | $ | 4 | $ | 3 | Interest income | $ | 16 | $ | 7 | $ | 7 | |||||||||||||||
Income from joint ventures | 3 | 5 | 3 | |||||||||||||||||||||||||
Other (expense) income – net | (12 | ) | 4 | — | ||||||||||||||||||||||||
Income from equity method investments | Income from equity method investments | — | 9 | 2 | ||||||||||||||||||||||||
Other (expense) – net | Other (expense) – net | (9) | (16) | (14) | ||||||||||||||||||||||||
Total other non-operating (expense) income, net | $ | (4 | ) | $ | 13 | $ | 6 | Total other non-operating (expense) income, net | $ | 7 | $ | — | $ | (5) |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2017 | (in millions) | 2022 | 2021 | 2020 | |||||||||||||||||||||
Income components: | ||||||||||||||||||||||||||||
Income (loss) components: | Income (loss) components: | |||||||||||||||||||||||||||
Domestic | $ | 203 | $ | 208 | $ | 162 | Domestic | $ | 90 | $ | 45 | $ | (33) | |||||||||||||||
Foreign | 213 | 377 | 304 | Foreign | 350 | 466 | 318 | |||||||||||||||||||||
Total pre-tax income | $ | 416 | $ | 585 | $ | 466 | Total pre-tax income | $ | 440 | $ | 511 | $ | 285 | |||||||||||||||
Income tax expense components: | Income tax expense components: | |||||||||||||||||||||||||||
Current: | Current: | |||||||||||||||||||||||||||
Domestic – federal | $ | 39 | $ | 9 | $ | 109 | Domestic – federal | $ | 77 | $ | 16 | $ | 24 | |||||||||||||||
Domestic – state and local | 13 | 13 | 9 | Domestic – state and local | 16 | 5 | 5 | |||||||||||||||||||||
Foreign | 40 | 61 | 51 | Foreign | 56 | 53 | 33 | |||||||||||||||||||||
Total Current | 92 | 83 | 169 | Total Current | 149 | 74 | 62 | |||||||||||||||||||||
Deferred: | Deferred: | |||||||||||||||||||||||||||
Domestic – federal | $ | 7 | $ | 17 | $ | (29 | ) | Domestic – federal | $ | (43) | $ | (2) | $ | (21) | ||||||||||||||
Domestic – state and local | (1 | ) | 5 | 10 | Domestic – state and local | (12) | — | (8) | ||||||||||||||||||||
Foreign | (83 | ) | (69 | ) | (14 | ) | Foreign | (9) | 12 | (2) | ||||||||||||||||||
Total Deferred | (77 | ) | (47 | ) | (33 | ) | Total Deferred | (64) | 10 | (31) | ||||||||||||||||||
Total income tax provision | $ | 15 | $ | 36 | $ | 136 | Total income tax provision | $ | 85 | $ | 84 | $ | 31 | |||||||||||||||
Effective income tax rate | 3.7 | % | 6.1 | % | 29.2 | % | Effective income tax rate | 19.2 | % | 16.3 | % | 10.9 | % |
Year Ended December 31, | ||||||||
2019 | 2018 | 2017 | ||||||
Tax provision at U.S. statutory rate | 21.0 | % | 21.0 | % | 35.0 | % | ||
Increase (decrease) in tax rate resulting from: | ||||||||
State income taxes | 2.7 | 2.3 | 1.6 | |||||
Uncertain tax positions | 0.4 | 2.6 | 1.6 | |||||
Valuation allowance | 1.2 | (47.1 | ) | 3.3 | ||||
Tax exempt interest | (3.0 | ) | (1.4 | ) | (10.6 | ) | ||
Foreign tax rate differential | 0.7 | 2.9 | (6.7 | ) | ||||
Impact of foreign earnings, net | 1.6 | (1.7 | ) | 37.0 | ||||
Tax incentives | (9.6 | ) | (6.2 | ) | (6.6 | ) | ||
Intercompany sale of assets | — | 35.5 | — | |||||
Other – net | 1.7 | (0.3 | ) | (0.5 | ) | |||
Rate change | (18.1 | ) | — | (22.9 | ) | |||
Goodwill impairment | 7.8 | — | — | |||||
Federal R&D tax credit | (1.2 | ) | (0.8 | ) | (1.0 | ) | ||
Stock compensation | (1.5 | ) | (0.7 | ) | (1.0 | ) | ||
Effective income tax rate | 3.7 | % | 6.1 | % | 29.2 | % |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Tax provision at U.S. statutory rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
Increase (decrease) in tax rate resulting from: | |||||||||||||||||
State income taxes | 1.2 | 0.8 | 0.7 | ||||||||||||||
Uncertain tax positions | (1.2) | (0.1) | (3.9) | ||||||||||||||
U.S. foreign derived intangible income tax benefit | (1.3) | (0.6) | (1.0) | ||||||||||||||
Net interest deductions | (1.8) | (2.4) | (4.5) | ||||||||||||||
Tax on Distribution of Foreign Earnings | 1.4 | (0.2) | (0.2) | ||||||||||||||
U.S. tax on foreign earnings | 2.7 | 2.2 | 5.3 | ||||||||||||||
Tax incentives | (4.4) | (5.5) | (7.4) | ||||||||||||||
Rate change | (0.6) | 0.9 | (1.3) | ||||||||||||||
Goodwill impairment | — | — | 2.9 | ||||||||||||||
Federal R&D tax credit | (0.7) | (0.7) | (1.3) | ||||||||||||||
Stock compensation | 0.1 | (0.6) | (2.4) | ||||||||||||||
Other—net | 2.8 | 1.5 | 3.0 | ||||||||||||||
Effective income tax rate | 19.2 | % | 16.3 | % | 10.9 | % |
December 31, | |||||||
(in millions) | 2019 | 2018 | |||||
Deferred tax assets: | |||||||
Employee benefits | $ | 106 | $ | 97 | |||
Accrued expenses | 26 | 30 | |||||
Loss and other tax credit carryforwards | 240 | 279 | |||||
Inventory | 6 | 7 | |||||
Lease Liabilities | 57 | — | |||||
Other | 3 | 11 | |||||
438 | 424 | ||||||
Valuation allowance | (191 | ) | (234 | ) | |||
Net deferred tax asset | $ | 247 | $ | 190 | |||
Deferred tax liabilities: | |||||||
Intangibles | $ | 160 | $ | 247 | |||
Investment in foreign subsidiaries | 7 | 8 | |||||
Property, plant, and equipment | 78 | 69 | |||||
Lease right-of-use assets | 57 | — | |||||
Other | 29 | 29 | |||||
Total deferred tax liabilities | $ | 331 | $ | 353 |
December 31, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Deferred tax assets: | |||||||||||
Employee benefits | $ | 58 | $ | 111 | |||||||
Accrued expenses | 36 | 35 | |||||||||
Loss and other tax credit carryforwards | 245 | 250 | |||||||||
R&D capitalization | 32 | — | |||||||||
Inventory | 5 | 6 | |||||||||
Lease Liabilities | 68 | 70 | |||||||||
Other | 7 | 8 | |||||||||
451 | 480 | ||||||||||
Valuation allowance | (204) | (201) | |||||||||
Net deferred tax asset | $ | 247 | $ | 279 | |||||||
Deferred tax liabilities: | |||||||||||
Intangibles | $ | 155 | $ | 155 | |||||||
Investment in foreign subsidiaries | 5 | 4 | |||||||||
Property, plant and equipment | 65 | 77 | |||||||||
Lease right-of-use assets | 67 | 69 | |||||||||
Hedging Instruments | 20 | — | |||||||||
Other | 11 | 35 | |||||||||
Total deferred tax liabilities | $ | 323 | $ | 340 |
(in millions) | 2019 | 2018 | 2017 | (in millions) | 2022 | 2021 | 2020 | |||||||||||||||||||||
Valuation allowance — January 1 | $ | 234 | $ | 350 | $ | 311 | Valuation allowance — January 1 | $ | 201 | $ | 217 | $ | 191 | |||||||||||||||
Change in assessment (a) | (2 | ) | 1 | (28 | ) | Change in assessment (a) | 1 | — | 1 | |||||||||||||||||||
Current year operations | 2 | (271 | ) | 48 | Current year operations | 3 | 4 | 4 | ||||||||||||||||||||
Other comprehensive income | Other comprehensive income | — | (4) | 3 | ||||||||||||||||||||||||
Foreign currency and other (b) | (43 | ) | 154 | 19 | Foreign currency and other (b) | (1) | (16) | 18 | ||||||||||||||||||||
Valuation allowance — December 31 | $ | 191 | $ | 234 | $ | 350 | Valuation allowance — December 31 | $ | 204 | $ | 201 | $ | 217 |
December 31, | December 31, | |||||||||||||||||
(in millions) | 2019 | 2018 | (in millions) | 2022 | 2021 | |||||||||||||
Non-current assets | $ | 226 | $ | 140 | Non-current assets | $ | 146 | $ | 226 | |||||||||
Non-current liabilities | (310 | ) | (303 | ) | Non-current liabilities | (222) | (287) | |||||||||||
Total net deferred tax liabilities | $ | (84 | ) | $ | (163 | ) | Total net deferred tax liabilities | $ | (76) | $ | (61) |
(in millions) | December 31, 2019 | First Year of Expiration | |||
U.S. net operating loss | $ | 8 | December 31, 2024 | ||
State net operating loss | 98 | December 31, 2020 | |||
State excess interest expense | 9 | Indefinitely | |||
State tax credits | 2 | Indefinitely | |||
Foreign net operating loss | 1,018 | December 31, 2020 | |||
Foreign tax credits | 3 | December 31, 2030 |
(in millions) | December 31, 2022 | First Year of Expiration | |||||||||
U.S. net operating loss | $ | 5 | December 31, 2025 | ||||||||
State net operating loss | 97 | December 31, 2024 | |||||||||
State excess interest expense | 19 | Indefinite | |||||||||
State tax credits | 1 | Indefinite | |||||||||
Foreign net operating loss | 992 | December 31, 2023 | |||||||||
Foreign tax credits | 4 | December 31, 2030 |
(in millions) | 2019 | 2018 | 2017 | ||||||||
Unrecognized tax benefits — January 1 | $ | 136 | $ | 130 | $ | 67 | |||||
Current year tax positions | 3 | — | 56 | ||||||||
Prior year tax positions | (5 | ) | 7 | 7 | |||||||
Acquisitions | — | — | — | ||||||||
Settlements | (5 | ) | (1 | ) | — | ||||||
Unrecognized tax benefits — December 31 | $ | 129 | $ | 136 | $ | 130 |
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Unrecognized tax benefits — January 1 | $ | 111 | $ | 114 | $ | 129 | |||||||||||
Gross Increases - Current year tax positions | — | — | — | ||||||||||||||
Gross Increases - Prior year tax positions | 3 | — | — | ||||||||||||||
Gross Decreases - Prior year tax positions | (8) | (1) | (3) | ||||||||||||||
Settlements | (1) | — | (12) | ||||||||||||||
Lapse of Statute of Limitations | (2) | (1) | — | ||||||||||||||
Currency Translation Adjustment | (1) | (1) | — | ||||||||||||||
Unrecognized tax benefits — December 31 | $ | 102 | $ | 111 | $ | 114 |
Jurisdiction | Earliest Open Year | |||||||
Italy | ||||||||
Luxembourg | ||||||||
Sweden | 2013 | |||||||
Germany | ||||||||
United Kingdom | ||||||||
United States | ||||||||
Switzerland |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Net income (in millions) | $ | 355 | $ | 427 | $ | 254 | |||||||||||
Shares (in thousands): | |||||||||||||||||
Weighted average common shares outstanding | 180,189 | 180,225 | 180,094 | ||||||||||||||
Add: Participating securities (a) | 28 | 22 | 22 | ||||||||||||||
Weighted average common shares outstanding — Basic | 180,217 | 180,247 | 180,116 | ||||||||||||||
Plus incremental shares from assumed conversions: (b) | |||||||||||||||||
Dilutive effect of stock options | 549 | 871 | 671 | ||||||||||||||
Dilutive effect of restricted stock units and performance share units | 213 | 408 | 312 | ||||||||||||||
Weighted average common shares outstanding — Diluted | 180,979 | 181,526 | 181,099 | ||||||||||||||
Basic earnings per share | $ | 1.97 | $ | 2.37 | $ | 1.41 | |||||||||||
Diluted earnings per share | $ | 1.96 | $ | 2.35 | $ | 1.40 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net income attributable to Xylem (in millions) | $ | 401 | $ | 549 | $ | 331 | |||||
Shares (in thousands): | |||||||||||
Weighted average common shares outstanding | 179,958 | 179,750 | 179,602 | ||||||||
Add: Participating securities (a) | 29 | 27 | 27 | ||||||||
Weighted average common shares outstanding — Basic | 179,987 | 179,777 | 179,629 | ||||||||
Plus incremental shares from assumed conversions: (b) | |||||||||||
Dilutive effect of stock options | 803 | 876 | 712 | ||||||||
Dilutive effect of restricted stock units and performance share units | 406 | 479 | 516 | ||||||||
Weighted average common shares outstanding — Diluted | 181,196 | 181,132 | 180,857 | ||||||||
Basic earnings per share | $ | 2.23 | $ | 3.05 | $ | 1.84 | |||||
Diluted earnings per share | $ | 2.21 | $ | 3.03 | $ | 1.83 |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2022 | 2021 | 2020 | ||||||||||||||
Stock options | 1,453 | 1,132 | 1,545 | ||||||||||||||
Restricted stock units | 353 | 271 | 362 | ||||||||||||||
Performance share units | 284 | 330 | 305 |
Year Ended December 31, | ||||||||
(in thousands) | 2019 | 2018 | 2017 | |||||
Stock options | 1,383 | 1,300 | 1,626 | |||||
Restricted stock units | 348 | 333 | 379 | |||||
Performance share units | 394 | 465 | 504 |
December 31, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Finished goods | $ | 286 | $ | 236 | |||||||
Work in process | 58 | 58 | |||||||||
Raw materials | 455 | 406 | |||||||||
Total inventories | $ | 799 | $ | 700 |
December 31, | |||||||
(in millions) | 2019 | 2018 | |||||
Finished goods | $ | 212 | $ | 248 | |||
Work in process | 47 | 45 | |||||
Raw materials | 280 | 302 | |||||
Total inventories | $ | 539 | $ | 595 |
December 31, | |||||||
(in millions) | 2019 | 2018 | |||||
Land, buildings and improvements | $ | 339 | $ | 326 | |||
Machinery and equipment | 861 | 819 | |||||
Equipment held for lease or rental | 256 | 249 | |||||
Furniture and fixtures | 118 | 109 | |||||
Construction work in progress | 104 | 107 | |||||
Other | 24 | 22 | |||||
Total property, plant and equipment, gross | 1,702 | 1,632 | |||||
Less accumulated depreciation | 1,044 | 976 | |||||
Total property, plant and equipment, net | $ | 658 | $ | 656 |
December 31, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Land, buildings and improvements | $ | 360 | $ | 370 | |||||||
Machinery and equipment | 896 | 933 | |||||||||
Equipment held for lease or rental | 263 | 250 | |||||||||
Furniture and fixtures | 124 | 127 | |||||||||
Construction work in progress | 106 | 115 | |||||||||
Other | 38 | 31 | |||||||||
Total property, plant and equipment, gross | 1,787 | 1,826 | |||||||||
Less accumulated depreciation | 1,157 | 1,182 | |||||||||
Total property, plant and equipment, net | $ | 630 | $ | 644 |
Year Ended December 31, | ||||||||||||||
(in millions) | 2022 | 2021 | 2020 | |||||||||||
Lease cost | ||||||||||||||
Operating lease cost | $ | 83 | $ | 84 | $ | 77 | ||||||||
Short-term lease cost | 2 | 2 | 2 | |||||||||||
Variable lease cost | 21 | 23 | 22 | |||||||||||
Total lease cost | $ | 106 | $ | 109 | $ | 101 |
Year Ended | |||
(in millions) | December 31, 2019 | ||
Lease cost | |||
Operating lease cost | $ | 76 | |
Short-term lease cost | 9 | ||
Variable lease cost | 19 | ||
Total lease cost | $ | 104 |
Year Ended | Year Ended December 31, | |||||||||||||
(in millions) | December 31, 2019 | (in millions) | 2022 | 2021 | 2020 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities: | Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||
Operating cash flows from operating leases | $ | 73 | Operating cash flows from operating leases | $ | 82 | $ | 83 | $ | 75 | |||||
Right-of-use assets obtained in exchange for lease obligations: | Right-of-use assets obtained in exchange for lease obligations: | |||||||||||||
Operating leases | $ | 33 | Operating leases | $ | 94 | $ | 109 | $ | 64 |
Year Ended December 31, | ||||||||
2022 | 2021 | |||||||
Weighted-average remaining lease term (years) | ||||||||
Operating leases | 7 Years | 7 Years | ||||||
Weighted-average discount rate | ||||||||
Operating leases | 2.3% | 2.2% | ||||||
(in millions) | |||
2020 | $ | 65 | |
2021 | 50 | ||
2022 | 37 | ||
2023 | 29 | ||
2024 | 21 | ||
Thereafter | 62 | ||
Total lease payments | 264 | ||
Less: Imputed interest | (21 | ) | |
Total | $ | 243 |
(in millions) | Total | |
2018 | 81 | |
2017 | 70 |
(in millions) | |||
2019 | $ | 76 | |
2020 | 61 | ||
2021 | 43 | ||
2022 | 33 | ||
2023 | 22 | ||
Thereafter | 64 | ||
Total lease payments | 299 |
(in millions) | ||||||||
2023 | $ | 71 | ||||||
2024 | 58 | |||||||
2025 | 45 | |||||||
2026 | 35 | |||||||
2027 | 28 | |||||||
Thereafter | 78 | |||||||
Total lease payments | 315 | |||||||
Less: Imputed interest | (22) | |||||||
Total | $ | 293 |
(in millions) | Water Infrastructure | Applied Water | Measurement & Control Solutions | Total | |||||||||||
Balance as of December 31, 2017 | $ | 667 | $ | 526 | $ | 1,575 | $ | 2,768 | |||||||
Activity in 2018 | |||||||||||||||
Divested/acquired | — | — | 279 | 279 | |||||||||||
Foreign currency and other | (14 | ) | (10 | ) | (47 | ) | (71 | ) | |||||||
Balance as of December 31, 2018 | $ | 653 | $ | 516 | $ | 1,807 | $ | 2,976 | |||||||
Activity in 2019 | |||||||||||||||
Acquired | — | — | 19 | 19 | |||||||||||
Impairment | — | — | (148 | ) | (148 | ) | |||||||||
Foreign currency and other | (2 | ) | (3 | ) | (3 | ) | (8 | ) | |||||||
Balance as of December 31, 2019 | $ | 651 | $ | 513 | $ | 1,675 | $ | 2,839 |
(in millions) | Water Infrastructure | Applied Water | Measurement & Control Solutions | Total | |||||||||||||||||||
Balance as of December 31, 2020 | $ | 668 | $ | 529 | $ | 1,657 | $ | 2,854 | |||||||||||||||
Activity in 2021 | |||||||||||||||||||||||
Foreign currency and other | (12) | (14) | (36) | (62) | |||||||||||||||||||
Balance as of December 31, 2021 | $ | 656 | $ | 515 | $ | 1,621 | $ | 2,792 | |||||||||||||||
Activity in 2022 | |||||||||||||||||||||||
Foreign currency and other | (18) | (13) | (42) | (73) | |||||||||||||||||||
Balance as of December 31, 2022 | $ | 638 | $ | 502 | $ | 1,579 | $ | 2,719 |
(in millions) | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||
Carrying Amount | Accumulated Amortization | Net Intangibles | Carrying Amount | Accumulated Amortization | Net Intangibles | ||||||||||||||||||
Customer and distributor relationships | $ | 945 | $ | (352 | ) | $ | 593 | $ | 951 | $ | (286 | ) | $ | 665 | |||||||||
Proprietary technology and patents | 204 | (111 | ) | 93 | 198 | (93 | ) | 105 | |||||||||||||||
Trademarks | 148 | (52 | ) | 96 | 148 | (41 | ) | 107 | |||||||||||||||
Software | 428 | (206 | ) | 222 | 355 | (164 | ) | 191 | |||||||||||||||
Other | 20 | (16 | ) | 4 | 24 | (19 | ) | 5 | |||||||||||||||
Indefinite-lived intangibles | 166 | — | 166 | 159 | — | 159 | |||||||||||||||||
Other intangibles | $ | 1,911 | $ | (737 | ) | $ | 1,174 | $ | 1,835 | $ | (603 | ) | $ | 1,232 |
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
(in millions) | Carrying Amount | Accumulated Amortization | Net Intangibles | Carrying Amount | Accumulated Amortization | Net Intangibles | |||||||||||||||||||||||||||||
Customer and distributor relationships | $ | 784 | $ | (371) | $ | 413 | $ | 929 | $ | (456) | $ | 473 | |||||||||||||||||||||||
Proprietary technology and patents | 165 | (118) | 47 | 201 | (142) | 59 | |||||||||||||||||||||||||||||
Trademarks | 137 | (80) | 57 | 141 | (72) | 69 | |||||||||||||||||||||||||||||
Software | 514 | (268) | 246 | 548 | (303) | 245 | |||||||||||||||||||||||||||||
Other | 5 | (3) | 2 | 21 | (18) | 3 | |||||||||||||||||||||||||||||
Indefinite-lived intangibles | 165 | — | 165 | 167 | — | 167 | |||||||||||||||||||||||||||||
Other intangibles | $ | 1,770 | $ | (840) | $ | 930 | $ | 2,007 | $ | (991) | $ | 1,016 |
(in millions) | |||
2020 | $ | 136 | |
2021 | 124 | ||
2022 | 115 | ||
2023 | 108 | ||
2024 | 99 |
(in millions) | |||||
2023 | $ | 127 | |||
2024 | 121 | ||||
2025 | 116 | ||||
2026 | 102 | ||||
2027 | 90 |
Year Ended December 31, | ||||||||||||
(in millions) | 2019 | 2018 | 2017 | |||||||||
Derivatives in Cash Flow Hedges | ||||||||||||
Foreign Exchange Contracts | ||||||||||||
Amount of (loss) gain recognized in OCI (a) | $ | (14 | ) | $ | (8 | ) | $ | 9 | ||||
Amount of loss (gain) reclassified from OCI into revenue (a) | 7 | — | (6 | ) | ||||||||
Amount of loss reclassified from OCI into cost of revenue (a) | 5 | 4 | 1 | |||||||||
Derivatives in Net Investment Hedges | ||||||||||||
Cross Currency Swaps | ||||||||||||
Amount of gain (loss) recognized in OCI (a) | $ | 22 | $ | 22 | $ | (53 | ) | |||||
Amount income recognized in Interest Expense | 16 | 2 | — | |||||||||
Foreign Currency Denominated Debt | ||||||||||||
Amount of gain (loss) recognized in OCI (a) | $ | 13 | $ | 27 | $ | (74 | ) |
Year Ended December 31, | ||||||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | |||||||||||||||||
Derivatives in Cash Flow Hedges | ||||||||||||||||||||
Foreign Exchange Contracts | ||||||||||||||||||||
Amount of gain (loss) recognized in OCI/L | $ | (24) | $ | (10) | $ | 9 | ||||||||||||||
Amount of (gain) loss reclassified from OCI/L into revenue | 19 | 4 | (4) | |||||||||||||||||
Amount of loss reclassified from OCI/L into cost of revenue | 2 | — | 1 | |||||||||||||||||
Derivatives in Net Investment Hedges | ||||||||||||||||||||
Cross-Currency Swaps | ||||||||||||||||||||
Amount of (loss) gain recognized in OCI/L | $ | 94 | $ | 94 | $ | (103) | ||||||||||||||
Amount of income recognized in Interest Expense | 29 | 21 | 19 | |||||||||||||||||
Foreign Currency Denominated Debt | ||||||||||||||||||||
Amount of (loss) gain recognized in OCI/L | $ | 31 | $ | 48 | $ | (55) | ||||||||||||||
Fair Value Hedges | ||||||||||||||||||||
Foreign Exchange Contracts | ||||||||||||||||||||
Amount of (loss) recognized in Selling, general and administrative expenses | $ | (7) | $ | — | $ | — | ||||||||||||||
Amount recognized in Interest expense | (3) | — | — | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
(in millions) | 2019 | 2018 | (in millions) | 2022 | 2021 | |||||||||||||
Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | |||||||||||||||||
Assets | Assets | |||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||
Other current assets | $ | — | $ | 3 | ||||||||||||||
Net Investment Hedges | Net Investment Hedges | |||||||||||||||||
Other non-current assets | 4 | — | Other non-current assets | 79 | 8 | |||||||||||||
Liabilities | Liabilities | |||||||||||||||||
Cash Flow Hedges | Cash Flow Hedges | |||||||||||||||||
Other current liabilities | — | (1 | ) | Other current liabilities | — | (1) | ||||||||||||
Net Investment Hedges | Net Investment Hedges | |||||||||||||||||
Other non-current liabilities | (24 | ) | (46 | ) | Other non-current liabilities | (6) | (26) |
December 31, | December 31, | |||||||||||||||||
(in millions) | 2019 | 2018 | (in millions) | 2022 | 2021 | |||||||||||||
Compensation and other employee-benefits | $ | 199 | $ | 194 | Compensation and other employee-benefits | $ | 285 | $ | 273 | |||||||||
Customer-related liabilities | 153 | 129 | Customer-related liabilities | 210 | 186 | |||||||||||||
Accrued taxes | Accrued taxes | 186 | 86 | |||||||||||||||
Lease liabilities | Lease liabilities | 69 | 69 | |||||||||||||||
Accrued warranty costs | 36 | 44 | Accrued warranty costs | 37 | 40 | |||||||||||||
Lease liabilities | 61 | — | ||||||||||||||||
Accrued taxes | 79 | 85 | ||||||||||||||||
Other accrued liabilities | 100 | 94 | Other accrued liabilities | 80 | 98 | |||||||||||||
Total accrued and other current liabilities | $ | 628 | $ | 546 | Total accrued and other current liabilities | $ | 867 | $ | 752 |
December 31, | ||||||||||||||||||
(in millions) | (in millions) | 2022 | 2021 | |||||||||||||||
2.250% Senior Notes due 2023 (a) | 2.250% Senior Notes due 2023 (a) | — | 564 | |||||||||||||||
3.250% Senior Notes due 2026 (a) | 3.250% Senior Notes due 2026 (a) | 500 | 500 | |||||||||||||||
1.950% Senior Notes due 2028 (a) | 1.950% Senior Notes due 2028 (a) | 500 | 500 | |||||||||||||||
2.250% Senior Notes due 2031 (a) | 2.250% Senior Notes due 2031 (a) | 500 | 500 | |||||||||||||||
4.375% Senior Notes due 2046 (a) | 4.375% Senior Notes due 2046 (a) | 400 | 400 | |||||||||||||||
December 31, | ||||||||||||||||||
(in millions) | 2019 | 2018 | ||||||||||||||||
4.875% Senior Notes due 2021 (a) | $ | 600 | $ | 600 | ||||||||||||||
2.250% Senior Notes due 2023 (a) | 557 | 570 | ||||||||||||||||
3.250% Senior Notes due 2026 (a) | 500 | 500 | ||||||||||||||||
4.375% Senior Notes due 2046 (a) | 400 | 400 | ||||||||||||||||
Commercial paper | 276 | — | ||||||||||||||||
Term loan | — | 257 | ||||||||||||||||
Debt issuance costs and unamortized discount (b) | (17 | ) | (19 | ) | Debt issuance costs and unamortized discount (b) | (20) | (24) | |||||||||||
Total debt | 2,316 | 2,308 | Total debt | $ | 1,880 | $ | 2,440 | |||||||||||
Less: short-term borrowings and current maturities of long-term debt | 276 | 257 | Less: short-term borrowings and current maturities of long-term debt | — | — | |||||||||||||
Total long-term debt | $ | 2,040 | $ | 2,051 | Total long-term debt | $ | 1,880 | $ | 2,440 |
(in millions) | Defined Contribution | ||
2019 | $ | 49 | |
2018 | 39 | ||
2017 | 38 |
(in millions) | Defined Contribution | ||||
2022 | $ | 53 | |||
2021 | 60 | ||||
2020 | 56 |
(in millions) | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||
Pension | Other | Total | Pension | Other | Total | ||||||||||||||||||
Fair value of plan assets | $ | 605 | $ | — | $ | 605 | $ | 567 | $ | — | $ | 567 | |||||||||||
Projected benefit obligation | (959 | ) | (49 | ) | (1,008 | ) | (862 | ) | (52 | ) | (914 | ) | |||||||||||
Funded status | $ | (354 | ) | $ | (49 | ) | $ | (403 | ) | $ | (295 | ) | $ | (52 | ) | $ | (347 | ) | |||||
Amounts recognized in the balance sheet | |||||||||||||||||||||||
Other non-current assets | $ | 58 | $ | — | $ | 58 | $ | 68 | $ | — | $ | 68 | |||||||||||
Accrued and other current liabilities | (13 | ) | (3 | ) | (16 | ) | (12 | ) | (3 | ) | (15 | ) | |||||||||||
Accrued postretirement benefits | (399 | ) | (46 | ) | (445 | ) | (351 | ) | (49 | ) | (400 | ) | |||||||||||
Net amount recognized | $ | (354 | ) | $ | (49 | ) | $ | (403 | ) | $ | (295 | ) | $ | (52 | ) | $ | (347 | ) | |||||
Accumulated other comprehensive income (loss): | |||||||||||||||||||||||
Net actuarial losses | $ | (330 | ) | $ | (19 | ) | $ | (349 | ) | $ | (260 | ) | $ | (24 | ) | $ | (284 | ) | |||||
Prior service credit | (3 | ) | 7 | 4 | (4 | ) | 12 | 8 | |||||||||||||||
Total | $ | (333 | ) | $ | (12 | ) | $ | (345 | ) | $ | (264 | ) | $ | (12 | ) | $ | (276 | ) |
(in millions) | December 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||
Pension | Other | Total | Pension | Other | Total | ||||||||||||||||||||||||||||||
Fair value of plan assets | $ | 246 | $ | — | $ | 246 | $ | 679 | $ | — | $ | 679 | |||||||||||||||||||||||
Projected benefit obligation | (482) | (31) | (513) | (1,043) | (42) | (1,085) | |||||||||||||||||||||||||||||
Funded status | $ | (236) | $ | (31) | $ | (267) | $ | (364) | $ | (42) | $ | (406) | |||||||||||||||||||||||
Amounts recognized in the balance sheet | |||||||||||||||||||||||||||||||||||
Other non-current assets | $ | 34 | $ | — | $ | 34 | $ | 48 | $ | — | $ | 48 | |||||||||||||||||||||||
Accrued and other current liabilities | (12) | (3) | (15) | (13) | (3) | (16) | |||||||||||||||||||||||||||||
Accrued post-retirement benefit obligations | (258) | (28) | (286) | (399) | (39) | (438) | |||||||||||||||||||||||||||||
Net amount recognized | $ | (236) | $ | (31) | $ | (267) | $ | (364) | $ | (42) | $ | (406) | |||||||||||||||||||||||
Accumulated other comprehensive loss: | |||||||||||||||||||||||||||||||||||
Net actuarial losses | $ | (50) | $ | (6) | $ | (56) | $ | (326) | $ | (17) | $ | (343) | |||||||||||||||||||||||
Prior service credit | (1) | 4 | 3 | (4) | 7 | 3 | |||||||||||||||||||||||||||||
Total | $ | (51) | $ | (2) | $ | (53) | $ | (330) | $ | (10) | $ | (340) |
Domestic Plans | International Plans | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 117 | $ | 123 | $ | 926 | $ | 1,032 | |||||||||||||||
Service cost | 3 | 3 | 12 | 14 | |||||||||||||||||||
Interest cost | 3 | 3 | 13 | 11 | |||||||||||||||||||
Benefits paid | (7) | (7) | (29) | (34) | |||||||||||||||||||
Actuarial loss (gain) (a) | (24) | (5) | (241) | (56) | |||||||||||||||||||
Plan amendments, settlements and curtailments (b) | — | — | (202) | (3) | |||||||||||||||||||
Foreign currency translation and other | — | — | (89) | (38) | |||||||||||||||||||
Benefit obligation at end of year | $ | 92 | $ | 117 | $ | 390 | $ | 926 | |||||||||||||||
Change in plan assets: | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 108 | 113 | $ | 571 | $ | 578 | ||||||||||||||||
Employer contributions | — | 16 | 26 | ||||||||||||||||||||
Actual return on plan assets | (21) | 2 | (133) | 9 | |||||||||||||||||||
Benefits paid | (7) | (7) | (29) | (34) | |||||||||||||||||||
Plan amendments, settlements and curtailments (b) | — | — | (202) | (3) | |||||||||||||||||||
Foreign currency translation and other | — | — | (57) | (5) | |||||||||||||||||||
Fair value of plan assets at end of year | $ | 80 | $ | 108 | $ | 166 | $ | 571 | |||||||||||||||
Unfunded status of the plans | $ | (12) | $ | (9) | $ | (224) | $ | (355) |
Domestic Plans | International Plans | ||||||||||||||
December 31, | December 31, | ||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Change in benefit obligation: | |||||||||||||||
Benefit obligation at beginning of year | $ | 99 | $ | 107 | $ | 763 | $ | 843 | |||||||
Service cost | 3 | 3 | 9 | 9 | |||||||||||
Interest cost | 4 | 4 | 19 | 19 | |||||||||||
Benefits paid | (7 | ) | (5 | ) | (28 | ) | (36 | ) | |||||||
Actuarial loss (gain) | 15 | (10 | ) | 104 | (20 | ) | |||||||||
Plan amendments, settlements and curtailments | — | — | (23 | ) | 3 | ||||||||||
Foreign currency translation/other | (1 | ) | — | 2 | (55 | ) | |||||||||
Benefit obligation at end of year | $ | 113 | $ | 99 | $ | 846 | $ | 763 | |||||||
Change in plan assets: | |||||||||||||||
Fair value of plan assets at beginning of year | $ | 97 | 84 | $ | 470 | $ | 544 | ||||||||
Employer contributions | — | 22 | 16 | 16 | |||||||||||
Actual return on plan assets | 17 | (4 | ) | 52 | (20 | ) | |||||||||
Benefits paid | (7 | ) | (5 | ) | (28 | ) | (36 | ) | |||||||
Plan amendments, settlements and curtailments | — | — | (23 | ) | — | ||||||||||
Foreign currency translation/other | (2 | ) | — | 13 | (34 | ) | |||||||||
Fair value of plan assets at end of year | $ | 105 | $ | 97 | $ | 500 | $ | 470 | |||||||
Unfunded status of the plans | $ | (8 | ) | $ | (2 | ) | $ | (346 | ) | $ | (293 | ) |
(in millions) | 2019 | 2018 | |||||
Change in benefit obligation: | |||||||
Benefit obligation at beginning of year | $ | 52 | $ | 55 | |||
Service cost | — | — | |||||
Interest cost | 2 | 2 | |||||
Benefits paid | (3 | ) | (3 | ) | |||
Actuarial gain/(loss) | (2 | ) | 1 | ||||
Plan Amendment and other | — | (3 | ) | ||||
Benefit obligation at the end of year | $ | 49 | $ | 52 |
(in millions) | 2022 | 2021 | |||||||||
Change in benefit obligation: | |||||||||||
Benefit obligation at beginning of year | $ | 42 | $ | 44 | |||||||
Interest cost | 1 | 1 | |||||||||
Benefits paid | (3) | (3) | |||||||||
Actuarial gain | (9) | — | |||||||||
Benefit obligation at the end of year | $ | 31 | $ | 42 |
December 31, | December 31, | |||||||||||||||||
(in millions) | 2019 | 2018 | (in millions) | 2022 | 2021 | |||||||||||||
Projected benefit obligation | $ | 562 | $ | 500 | Projected benefit obligation | $ | 391 | $ | 574 | |||||||||
Accumulated benefit obligation | 526 | 470 | Accumulated benefit obligation | 372 | 541 | |||||||||||||
Fair value of plan assets | 150 | 137 | Fair value of plan assets | 121 | 164 |
Year Ended December 31, | |||||||||||
(in millions) | 2019 | 2018 | 2017 | ||||||||
Domestic defined benefit pension plans: | |||||||||||
Service cost | $ | 3 | $ | 3 | $ | 3 | |||||
Interest cost | 4 | 4 | 4 | ||||||||
Expected return on plan assets | (8 | ) | (7 | ) | (6 | ) | |||||
Amortization of net actuarial loss | 1 | 2 | 2 | ||||||||
Net periodic benefit cost | $ | — | $ | 2 | $ | 3 | |||||
International defined benefit pension plans: | |||||||||||
Service cost | $ | 9 | $ | 9 | $ | 12 | |||||
Interest cost | 19 | 19 | 21 | ||||||||
Expected return on plan assets | (27 | ) | (35 | ) | (34 | ) | |||||
Amortization of net actuarial loss | 9 | 9 | 9 | ||||||||
Settlement | 9 | 1 | 1 | ||||||||
Net periodic benefit cost | $ | 19 | $ | 3 | $ | 9 | |||||
Total net periodic benefit cost | $ | 19 | $ | 5 | $ | 12 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Domestic defined benefit pension plans: | |||||||||||||||||
Service cost | $ | 3 | $ | 3 | $ | 3 | |||||||||||
Interest cost | 3 | 3 | 3 | ||||||||||||||
Expected return on plan assets | (6) | (7) | (7) | ||||||||||||||
Amortization of net actuarial loss | 3 | 4 | 3 | ||||||||||||||
Net periodic benefit cost | $ | 3 | $ | 3 | $ | 2 | |||||||||||
International defined benefit pension plans: | |||||||||||||||||
Service cost | $ | 12 | $ | 14 | $ | 13 | |||||||||||
Interest cost | 13 | 11 | 16 | ||||||||||||||
Expected return on plan assets | (13) | (14) | (14) | ||||||||||||||
Amortization of net actuarial loss | 10 | 17 | 14 | ||||||||||||||
U.K. pension settlement expense | 140 | — | — | ||||||||||||||
Net periodic benefit cost | $ | 162 | $ | 28 | $ | 29 | |||||||||||
Total net periodic benefit cost | $ | 165 | $ | 31 | $ | 31 |
Year Ended December 31, | |||||||||||
(in millions) | 2019 | 2018 | 2017 | ||||||||
Domestic defined benefit pension plans: | |||||||||||
Net (gain) loss | $ | 6 | $ | 1 | $ | 1 | |||||
Prior service cost | — | — | 1 | ||||||||
Amortization of net actuarial loss | (1 | ) | (2 | ) | (2 | ) | |||||
(Gains) losses recognized in other comprehensive loss | $ | 5 | $ | (1 | ) | $ | — | ||||
International defined benefit pension plans: | |||||||||||
Net (gain) loss | $ | 79 | $ | 35 | $ | 23 | |||||
Prior service credit | — | 3 | 1 | ||||||||
Amortization of net actuarial loss | (9 | ) | (9 | ) | (9 | ) | |||||
Settlement | (9 | ) | (1 | ) | (1 | ) | |||||
Foreign Exchange | 3 | (15 | ) | 19 | |||||||
(Gains) losses recognized in other comprehensive loss | $ | 64 | $ | 13 | $ | 33 | |||||
Total (gains) losses recognized in other comprehensive loss | $ | 69 | $ | 12 | $ | 33 | |||||
Total (gains) losses recognized in comprehensive income | $ | 88 | $ | 17 | $ | 45 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Domestic defined benefit pension plans: | |||||||||||||||||
Net (gain) loss | $ | 3 | $ | — | $ | 3 | |||||||||||
Amortization of net actuarial loss | (3) | (4) | (3) | ||||||||||||||
(Gains) losses recognized in other comprehensive income (loss) | $ | — | $ | (4) | $ | — | |||||||||||
International defined benefit pension plans: | |||||||||||||||||
Net (gain) loss | $ | (95) | $ | (51) | $ | 74 | |||||||||||
Amortization of net actuarial loss | (8) | (17) | (14) | ||||||||||||||
U.K. pension settlement expense | (137) | — | — | ||||||||||||||
Foreign Exchange | (39) | (11) | 19 | ||||||||||||||
(Gains) losses recognized in other comprehensive income (loss) | $ | (279) | $ | (79) | $ | 79 | |||||||||||
Total (gains) losses recognized in other comprehensive income (loss) | $ | (279) | $ | (83) | $ | 79 | |||||||||||
Total (gains) losses recognized in comprehensive income | $ | (114) | $ | (52) | $ | 110 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2017 | (in millions) | 2022 | 2021 | 2020 | |||||||||||||||||||||
Service cost | $ | — | $ | — | $ | 1 | ||||||||||||||||||||||
Interest cost | 2 | 2 | 2 | Interest cost | 1 | 1 | 2 | |||||||||||||||||||||
Amortization of prior service credit | (4 | ) | (4 | ) | (3 | ) | Amortization of prior service credit | (2) | (2) | (3) | ||||||||||||||||||
Amortization of net actuarial loss | 2 | 2 | 2 | Amortization of net actuarial loss | 1 | 2 | 2 | |||||||||||||||||||||
Net periodic benefit cost | $ | — | $ | — | $ | 2 | Net periodic benefit cost | $ | — | $ | 1 | $ | 1 |
Year Ended December 31, | |||||||||||
(in millions) | 2019 | 2018 | 2017 | ||||||||
Net loss (gain) | $ | (2 | ) | $ | 1 | $ | (5 | ) | |||
Prior service credit | — | (3 | ) | (3 | ) | ||||||
Amortization of prior service credit | 4 | 4 | 3 | ||||||||
Amortization of net actuarial loss | (2 | ) | (2 | ) | (2 | ) | |||||
Foreign Exchange/Other | — | — | (1 | ) | |||||||
Losses (gains) recognized in other comprehensive loss | $ | — | $ | — | $ | (8 | ) | ||||
Total losses (gains) recognized in comprehensive income | $ | — | $ | — | $ | (6 | ) |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Net loss (gain) | $ | (9) | $ | — | $ | 1 | |||||||||||
Prior service credit | — | — | (5) | ||||||||||||||
Amortization of prior service credit | 2 | 3 | 3 | ||||||||||||||
Amortization of net actuarial loss | (1) | (2) | (2) | ||||||||||||||
Losses (gains) recognized in other comprehensive income (loss) | $ | (8) | $ | 1 | $ | (3) | |||||||||||
Total losses (gains) recognized in comprehensive income | $ | (8) | $ | 2 | $ | (2) |
2019 | 2018 | 2017 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Int’l | U.S. | Int’l | U.S. | Int’l | U.S. | Int’l | U.S. | Int’l | U.S. | Int’l | |||||||||||||||||||||||||||||||||||||||||
Benefit Obligation Assumptions | Benefit Obligation Assumptions | |||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 3.25 | % | 1.80 | % | 4.50 | % | 2.60 | % | 3.75 | % | 2.43 | % | Discount rate | 5.25 | % | 4.13 | % | 3.00 | % | 1.55 | % | 2.50 | % | 1.06 | % | |||||||||||||||||||||||||||
Rate of future compensation increase | NM | 2.94 | % | NM | 2.92 | % | NM | 2.93 | % | Rate of future compensation increase | NM | 2.79 | % | NM | 2.84 | % | NM | 2.79 | % | |||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost Assumptions | Net Periodic Benefit Cost Assumptions | |||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.50 | % | 2.60 | % | 3.75 | % | 2.43 | % | 4.25 | % | 2.63 | % | Discount rate | 3.00 | % | 1.55 | % | 2.50 | % | 1.06 | % | 3.25 | % | 1.80 | % | |||||||||||||||||||||||||||
Expected long-term return on plan assets | 7.75 | % | 6.96 | % | 8.00 | % | 7.23 | % | 8.00 | % | 7.20 | % | Expected long-term return on plan assets | 5.50 | % | 2.79 | % | 6.50 | % | 2.60 | % | 6.50 | % | 2.82 | % | |||||||||||||||||||||||||||
Rate of future compensation increase | NM | 2.92 | % | NM | 2.93 | % | NM | 2.76 | % | Rate of future compensation increase | NM | 2.84 | % | NM | 2.79 | % | NM | 2.94 | % |
2019 | 2018 | 2017 | ||||||
Expected long-term rate of return on plan assets | 7.09 | % | 7.34 | % | 7.30 | % | ||
Actual rate of return (loss) on plan assets | 12.59 | % | (3.85 | )% | 5.70 | % |
2019 | 2018 | Target Allocation Ranges | |||||
Equity securities | 18.6 | % | 29.7 | % | 15-60% | ||
Fixed income | 31.7 | % | 24.5 | % | 10-50% | ||
Hedge funds | 2.0 | % | 11.8 | % | 0-40% | ||
Private equity | — | % | 1.1 | % | 0-30% | ||
Cash, insurance contracts and other | 47.7 | % | 32.9 | % | 0-60% |
2022 | 2021 | Target Allocation Ranges | |||||||||||||||
Equity securities | 47.1 | % | 23.0 | % | 35-75% | ||||||||||||
Fixed income | 43.9 | % | 21.9 | % | 45-70% | ||||||||||||
Cash, insurance contracts and other | 9.0 | % | 55.1 | % | 0-15% |
2019 | 2018 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | NAV Practical Expedient | Total | Level 1 | Level 2 | Level 3 | NAV Practical Expedient | Total | (in millions) | Level 1 | Level 2 | Level 3 | NAV Practical Expedient | Total | Level 1 | Level 2 | Level 3 | NAV Practical Expedient | Total | |||||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global stock funds/securities | $ | 90 | $ | — | $ | — | $ | 13 | $ | 103 | $ | 88 | $ | — | $ | — | $ | 29 | $ | 117 | Global stock funds/securities | $ | 37 | $ | 51 | $ | — | $ | 9 | $ | 97 | $ | 43 | $ | 71 | $ | — | $ | 14 | $ | 128 | |||||||||||||||||||||||||
Index funds | — | — | — | — | — | — | — | — | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diversified Growth and Income Funds | — | — | — | 9 | 9 | — | — | — | 51 | 51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diversified growth and income funds | Diversified growth and income funds | — | — | — | 19 | 19 | — | — | — | 28 | 28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income | Fixed income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 86 | — | — | 5 | 91 | 34 | — | — | 25 | 59 | Corporate bonds | 1 | 67 | — | 5 | 73 | 1 | 92 | — | 7 | 100 | |||||||||||||||||||||||||||||||||||||||||||||
Government bonds | 35 | — | — | 27 | 62 | 31 | — | — | 20 | 51 | Government bonds | — | 13 | — | 18 | 31 | — | 17 | — | 27 | 44 | |||||||||||||||||||||||||||||||||||||||||||||
Hedging Instruments | 4 | 35 | — | — | 39 | 5 | 22 | — | — | 27 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diversified Growth and Income Funds | — | — | — | — | — | — | — | — | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedge funds | — | — | — | 12 | 12 | — | — | — | 67 | 67 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private equity | — | — | — | — | — | — | — | — | 6 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedging instruments | Hedging instruments | — | 4 | — | — | 4 | — | 5 | — | — | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance contracts and other | — | 13 | 3 | 16 | 104 | — | 12 | 70 | 186 | Insurance contracts and other | — | — | 20 | 20 | — | — | 368 | — | 368 | |||||||||||||||||||||||||||||||||||||||||||||||
Cash & Cash Equivalents | 273 | — | — | — | 273 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash & cash equivalents | Cash & cash equivalents | 2 | — | — | — | 2 | 6 | — | — | — | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total plan assets subject to leveling | $ | 488 | $ | 35 | $ | 13 | $ | 69 | $ | 605 | $ | 262 | $ | 22 | $ | 12 | $ | 271 | $ | 567 | Total plan assets subject to leveling | $ | 40 | $ | 135 | $ | 20 | $ | 51 | $ | 246 | $ | 50 | $ | 185 | $ | 368 | $ | 76 | $ | 679 |
(in millions) | Insurance Contracts and Other | |||
Balance, December 31, 2017 | $ | 17 | ||
Purchases, sales, settlements | (5 | ) | ||
Currency impact | — | |||
Balance, December 31, 2018 | �� | $ | 12 | |
Purchases, sales, settlements | 1 | |||
Currency impact | — | |||
Balance, December 31, 2019 | $ | 13 |
(in millions) | Insurance Contracts and Other | |||||||
Balance, December 31, 2020 | $ | 384 | ||||||
Purchases, sales, settlements, net | (8) | |||||||
Actual return on plan assets | (6) | |||||||
Currency impact | (2) | |||||||
Balance, December 31, 2021 | 368 | |||||||
Purchases, sales, settlements, net | (210) | |||||||
Actual return on plan assets | (99) | |||||||
Currency impact | (39) | |||||||
Balance, December 31, 2022 | $ | 20 |
(in millions) | Pension | Other Benefits | |||||
2020 | $ | 37 | $ | 3 | |||
2021 | 36 | 3 | |||||
2022 | 37 | 3 | |||||
2023 | 38 | 3 | |||||
2024 | 39 | 3 | |||||
Years 2025 - 2029 | 208 | 16 |
(in millions) | Pension | Other Benefits | |||||||||
2023 | $ | 27 | $ | 3 | |||||||
2024 | 27 | 3 | |||||||||
2025 | 27 | 3 | |||||||||
2026 | 28 | 3 | |||||||||
2027 | 28 | 3 | |||||||||
Years 2026 - 2030 | 147 | 11 |
Share units (in thousands) | Weighted Average Exercise Price / Share | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in millions) | |||||||||
Outstanding at January 1, 2019 | 2,125 | $ | 43.08 | 6.5 | ||||||||
Granted | 334 | $ | 74.08 | |||||||||
Exercised | (348 | ) | $ | 35.56 | ||||||||
Forfeited and expired | (71 | ) | $ | 67.97 | ||||||||
Outstanding at December 31, 2019 | 2,040 | $ | 48.56 | 6.3 | $ | 62 | ||||||
Options exercisable at December 31, 2019 | 1,432 | $ | 39.83 | 5.3 | $ | 56 | ||||||
Vested and non-vested expected to vest as of December 31, 2019 | 1,996 | $ | 48.00 | 6.2 | $ | 61 |
Share units (in thousands) | Weighted Average Exercise Price / Share | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in millions) | ||||||||||||||||||||
Outstanding at January 1, 2022 | 1,827 | $ | 64.12 | 6.1 | |||||||||||||||||||
Granted | 323 | 87.72 | |||||||||||||||||||||
Exercised | (131) | 60.07 | |||||||||||||||||||||
Forfeited and expired | (84) | 82.35 | |||||||||||||||||||||
Outstanding at December 31, 2022 | 1,935 | $ | 67.55 | 5.9 | $ | 83 | |||||||||||||||||
Options exercisable at December 31, 2022 | 1,342 | $ | 58.69 | 4.7 | $ | 70 | |||||||||||||||||
Vested and non-vested expected to vest as of December 31, 2022 | 1,889 | $ | 67.03 | 5.6 | $ | 82 |
2019 | 2018 | 2017 | |||||||||
Dividend yield | 1.30 | % | 1.12 | % | 1.49 | % | |||||
Volatility | 24.10 | % | 23.41 | % | 25.39 | % | |||||
Risk-free interest rate | 2.55 | % | 2.76 | % | 2.07 | % | |||||
Expected term (in years) | 5.4 | 5.1 | 5.1 | ||||||||
Weighted-average fair value per option | $ | 17.04 | $ | 17.80 | $ | 10.66 |
2022 | 2021 | 2020 | |||||||||||||||
Dividend yield | 1.37 | % | 1.10 | % | 1.42 | % | |||||||||||
Volatility | 26.25 | % | 26.29 | % | 24.16 | % | |||||||||||
Risk-free interest rate | 1.74 | % | 0.86 | % | 0.83 | % | |||||||||||
Expected term (in years) | 5.6 | 5.7 | 5.8 | ||||||||||||||
Weighted-average fair value per option | $ | 20.38 | $ | 23.26 | $ | 14.84 |
Share Units (in thousands) | Weighted Average Grant Date Fair Value / Share | |||||
Outstanding at January 1, 2019 | 537 | $ | 59.41 | |||
Granted | 287 | 74.36 | ||||
Vested | (257 | ) | 55.09 | |||
Forfeited | (55 | ) | 67.80 | |||
Outstanding at December 31, 2019 | 512 | 68.95 |
Share Units (in thousands) | Weighted Average Grant Date Fair Value / Share | ||||||||||
Outstanding at January 1, 2022 | 484 | $ | 88.47 | ||||||||
Granted | 349 | 87.01 | |||||||||
Vested | (231) | 84.75 | |||||||||
Forfeited | (49) | 90.99 | |||||||||
Outstanding at December 31, 2022 | 553 | $ | 88.88 |
Share units (in thousands) | Weighted Average Grant Date Fair Value / Share | |||||
Outstanding at January 1, 2019 | 274 | $ | 52.11 | |||
Granted | 77 | 74.07 | ||||
Adjustment for Performance Condition Achieved (a) | 74 | 37.86 | ||||
Vested | (174 | ) | 37.86 | |||
Forfeited | (26 | ) | 63.89 | |||
Outstanding at December 31, 2019 | 225 | 64.51 |
Share units (in thousands) | Weighted Average Grant Date Fair Value / Share | ||||||||||
Outstanding at January 1, 2022 | 177 | $ | 84.84 | ||||||||
Granted | 35 | 86.77 | |||||||||
Forfeited | (66) | 77.15 | |||||||||
Outstanding at December 31, 2022 | 146 | $ | 88.78 |
Share units (in thousands) | Weighted Average Grant Date Fair Value / Share | |||||
Outstanding at January 1, 2019 | 274 | $ | 61.04 | |||
Granted | 77 | 89.62 | ||||
Adjustment for Performance Condition Achieved (a) | 74 | 37.86 | ||||
Vested | (174 | ) | 37.86 | |||
Forfeited | (26 | ) | 63.89 | |||
Outstanding at December 31, 2019 | 225 | 75.80 |
Share units (in thousands) | Weighted Average Grant Date Fair Value / Share | ||||||||||||||||||||||
Outstanding at January 1, 2022 | — | $ | — | ||||||||||||||||||||
Granted | 35 | 86.77 | |||||||||||||||||||||
Forfeited | (3) | 86.76 | |||||||||||||||||||||
Outstanding at December 31, 2022 | 32 | $ | 86.77 |
Share units (in thousands) | Weighted Average Grant Date Fair Value / Share | ||||||||||
Outstanding at January 1, 2022 | 177 | $ | 102.96 | ||||||||
Granted | 70 | 71.18 | |||||||||
Adjustment for Market Condition Achieved (a) | 22 | 89.62 | |||||||||
Vested | (75) | 89.62 | |||||||||
Forfeited | (16) | 89.04 | |||||||||
Outstanding at December 31, 2022 | 178 | $ | 100.67 |
2022 | 2021 | 2020 | |||||||||||||||
Volatility | 33.3 | % | 33.5 | % | 22.6 | % | |||||||||||
Risk-free interest rate | 1.44 | % | 0.24 | % | 1.08 | % | |||||||||||
(share units in thousands) | 2022 | 2021 | 2020 | ||||||||||||||
Beginning Balance, January 1 | 180,392 | 180,354 | 180,140 | ||||||||||||||
Stock incentive plan net activity | 437 | 716 | 986 | ||||||||||||||
Repurchase of common stock | (576) | (678) | (772) | ||||||||||||||
Ending Balance, December 31 | 180,253 | 180,392 | 180,354 |
(share units in thousands) | 2019 | 2018 | 2017 | |||||
Beginning Balance, January 1 | 179,724 | 179,862 | 179,367 | |||||
Stock incentive plan net activity | 952 | 672 | 985 | |||||
Repurchase of common stock | (536 | ) | (810 | ) | (490 | ) | ||
Ending Balance, December 31 | 180,140 | 179,724 | 179,862 |
(in millions) | Foreign Currency Translation | Post-retirement Benefit Plans | Derivative Instruments | Total | |||||||||||||||||||
Balance at January 1, 2020 | (103) | (269) | (3) | (375) | |||||||||||||||||||
Foreign currency translation adjustment | (22) | (22) | |||||||||||||||||||||
Income tax impact on foreign currency translation adjustment | 39 | 39 | |||||||||||||||||||||
Changes in post-retirement benefit plans | (73) | (73) | |||||||||||||||||||||
Foreign currency translation adjustment for post-retirement benefit plans | (19) | (19) | |||||||||||||||||||||
Income tax expense on changes in post-retirement benefit plans, including settlement | 18 | 18 | |||||||||||||||||||||
Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net | 16 | 16 | |||||||||||||||||||||
Income tax impact on amortization of post-retirement benefit plan items | (3) | (3) | |||||||||||||||||||||
Unrealized loss on derivative hedge agreements | 9 | 9 | |||||||||||||||||||||
Reclassification of unrealized gain on foreign exchange agreements into revenue | (4) | (4) | |||||||||||||||||||||
Reclassification of unrealized (gain) loss on foreign exchange agreements into cost of revenue | 1 | 1 | |||||||||||||||||||||
Balance at December 31, 2020 | (86) | (330) | 3 | (413) | |||||||||||||||||||
Foreign currency translation adjustment | 20 | 20 | |||||||||||||||||||||
Income tax impact on foreign currency translation adjustment | (35) | (35) | |||||||||||||||||||||
Changes in post-retirement benefit plans | 51 | 51 | |||||||||||||||||||||
Foreign currency translation adjustment for post-retirement benefit plans | 11 | 11 | |||||||||||||||||||||
Income tax expense on changes in post-retirement benefit plans | (15) | (15) | |||||||||||||||||||||
Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net | 20 | 20 | |||||||||||||||||||||
Income tax impact on amortization of post-retirement benefit plan items | (5) | (5) | |||||||||||||||||||||
Unrealized gain on derivative hedge agreements | (10) | (10) | |||||||||||||||||||||
Tax on unrealized gain on derivative hedge agreements | 1 | 1 | |||||||||||||||||||||
Reclassification of unrealized gain on foreign exchange agreements into revenue | 4 | 4 | |||||||||||||||||||||
Balance at December 31, 2021 | $ | (101) | $ | (268) | $ | (2) | $ | (371) | |||||||||||||||
Foreign currency translation adjustment | (53) | (53) | |||||||||||||||||||||
Income tax impact on foreign currency translation adjustment | (26) | (26) | |||||||||||||||||||||
Changes in post-retirement benefit plans | 101 | 101 |
(in millions) | Foreign Currency Translation | Postretirement Benefit Plans | Derivative Instruments | Total | |||||||||||
Balance at January 1, 2017 | $ | (140 | ) | $ | (177 | ) | $ | (1 | ) | $ | (318 | ) | |||
Foreign currency translation adjustment | 79 | 79 | |||||||||||||
Income tax impact on foreign currency translation adjustment | 46 | 46 | |||||||||||||
Changes in postretirement benefit plans | (18 | ) | (18 | ) | |||||||||||
Income tax expense on changes in postretirement benefit plans | 7 | 7 | |||||||||||||
Foreign currency translation adjustment for postretirement benefit plans | (18 | ) | (18 | ) | |||||||||||
Amortization of prior service cost and net actuarial loss on postretirement benefit plans into other non-operating income (expense), net | 11 | 11 | |||||||||||||
Income tax impact on amortization of postretirement benefit plan items | (3 | ) | (3 | ) | |||||||||||
Unrealized loss on derivative hedge agreements | 9 | 9 | |||||||||||||
Reclassification of unrealized (gain) loss on foreign exchange agreements into revenue | (6 | ) | (6 | ) | |||||||||||
Reclassification of unrealized (gain) loss on foreign exchange agreements into cost of revenue | — | 1 | 1 | ||||||||||||
Balance at December 31, 2017 | $ | (15 | ) | $ | (198 | ) | $ | 3 | $ | (210 | ) |
(in millions) | Foreign Currency Translation | Post-retirement Benefit Plans | Derivative Instruments | Total | |||||||||||||||||||
U.K. pension settlement | 137 | 137 | |||||||||||||||||||||
Foreign currency translation adjustment for post-retirement benefit plans | 39 | 39 | |||||||||||||||||||||
Income tax expense on changes in post-retirement benefit plans, including settlement | (58) | (58) | |||||||||||||||||||||
Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net | 10 | 10 | |||||||||||||||||||||
Income tax impact on amortization of post-retirement benefit plan items | (2) | (2) | |||||||||||||||||||||
Unrealized gain on derivative hedge agreements | (24) | (24) | |||||||||||||||||||||
Tax on unrealized gain on derivative hedge agreements | — | — | |||||||||||||||||||||
Reclassification of unrealized gain on foreign exchange agreements into revenue | 19 | 19 | |||||||||||||||||||||
Reclassification of unrealized gain on foreign exchange agreements into cost of revenue | 2 | 2 | |||||||||||||||||||||
Balance at December 31, 2022 | (180) | (41) | (5) | (226) |
(in millions) | Foreign Currency Translation | Postretirement Benefit Plans | Derivative Instruments | Total | |||||||||||
Cumulative effect of change in accounting principle | (11 | ) | (6 | ) | (17 | ) | |||||||||
Foreign currency translation adjustment | (83 | ) | (83 | ) | |||||||||||
Income tax impact on foreign currency translation adjustment | (12 | ) | (12 | ) | |||||||||||
Changes in postretirement benefit plans | (36 | ) | (36 | ) | |||||||||||
Foreign currency translation adjustment for postretirement benefit plans | 15 | 15 | |||||||||||||
Income tax expense on changes in postretirement benefit plans | 5 | 5 | |||||||||||||
Amortization of prior service cost and net actuarial loss on postretirement benefit plans into other non-operating income (expense), net | 9 | 9 | |||||||||||||
Income tax impact on amortization of postretirement benefit plan items | (3 | ) | (3 | ) | |||||||||||
Unrealized loss on derivative hedge agreements | (8 | ) | (8 | ) | |||||||||||
Reclassification of unrealized (gain) loss on foreign exchange agreements into cost of revenue | 4 | 4 | |||||||||||||
Balance at December 31, 2018 | $ | (121 | ) | $ | (214 | ) | $ | (1 | ) | $ | (336 | ) | |||
Foreign currency translation adjustment | 27 | 27 | |||||||||||||
Income tax impact on foreign currency translation adjustment | (9 | ) | — | (9 | ) | ||||||||||
Changes in postretirement benefit plans | (83 | ) | (83 | ) | |||||||||||
Settlement charge released into other non-operating income (expense), net | 9 | 9 | |||||||||||||
Foreign currency translation adjustment for postretirement benefit plans | (3 | ) | (3 | ) | |||||||||||
Income tax expense on changes in postretirement benefit plans, including settlement | 16 | 16 | |||||||||||||
Amortization of prior service cost and net actuarial loss on postretirement benefit plans into other non-operating income (expense), net | 8 | 8 | |||||||||||||
Income tax impact on amortization of postretirement benefit plan items | (2 | ) | (2 | ) | |||||||||||
Unrealized loss on derivative hedge agreements | (14 | ) | (14 | ) | |||||||||||
Reclassification of unrealized loss on foreign exchange agreements into revenue | 7 | 7 | |||||||||||||
Reclassification of unrealized loss on foreign exchange agreements into cost of revenue | 5 | 5 | |||||||||||||
Balance at December 31, 2019 | $ | (103 | ) | $ | (269 | ) | $ | (3 | ) | $ | (375 | ) |
(in millions) | 2019 | 2018 | 2017 | (in millions) | 2022 | 2021 | 2020 | |||||||||||||||||||||
Warranty accrual – January 1 | $ | 60 | $ | 82 | $ | 99 | Warranty accrual – January 1 | $ | 57 | $ | 65 | $ | 41 | |||||||||||||||
Net charges for product warranties in the period | 25 | 20 | 28 | Net charges for product warranties in the period | 24 | 27 | 57 | |||||||||||||||||||||
Settlement of warranty claims | (42 | ) | (42 | ) | (48 | ) | Settlement of warranty claims | (25) | (32) | (34) | ||||||||||||||||||
Foreign currency and other | (2 | ) | — | 3 | Foreign currency and other | (2) | (3) | 1 | ||||||||||||||||||||
Warranty accrual – December 31 | $ | 41 | $ | 60 | $ | 82 | Warranty accrual – December 31 | $ | 54 | $ | 57 | $ | 65 |
(in millions) | 2019 | 2018 | 2017 | (in millions) | 2022 | 2021 | 2020 | |||||||||||||||||||||||||
Sales to unconsolidated affiliates | $ | 10 | $ | 10 | $ | 12 | Sales to unconsolidated affiliates | $ | 1 | $ | 1 | $ | 10 | |||||||||||||||||||
Purchases from unconsolidated affiliates | 22 | 22 | 17 | Purchases from unconsolidated affiliates | 16 | 18 | 16 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2017 | (in millions) | 2022 | 2021 | 2020 | |||||||||||||||||||||
Revenue: | Revenue: | |||||||||||||||||||||||||||
Water Infrastructure | $ | 2,177 | $ | 2,176 | $ | 2,004 | Water Infrastructure | $ | 2,364 | $ | 2,247 | $ | 2,079 | |||||||||||||||
Applied Water | 1,541 | 1,534 | 1,421 | Applied Water | 1,767 | 1,613 | 1,434 | |||||||||||||||||||||
Measurement & Control Solutions | 1,531 | 1,497 | 1,282 | Measurement & Control Solutions | 1,391 | 1,335 | 1,363 | |||||||||||||||||||||
Total | $ | 5,249 | $ | 5,207 | $ | 4,707 | Total | $ | 5,522 | $ | 5,195 | $ | 4,876 | |||||||||||||||
Operating income: | Operating income: | |||||||||||||||||||||||||||
Water Infrastructure | $ | 365 | $ | 359 | $ | 312 | Water Infrastructure | $ | 418 | $ | 387 | $ | 318 | |||||||||||||||
Applied Water | 241 | 236 | 194 | Applied Water | 258 | 240 | 205 | |||||||||||||||||||||
Measurement & Control Solutions | (67 | ) | 118 | 110 | Measurement & Control Solutions | 2 | 12 | (106) | ||||||||||||||||||||
Corporate and other | (53 | ) | (59 | ) | (64 | ) | Corporate and other | (56) | (54) | (50) | ||||||||||||||||||
Total operating income | 486 | 654 | 552 | Total operating income | 622 | 585 | 367 | |||||||||||||||||||||
Interest expense | 67 | 82 | 82 | Interest expense | 50 | 76 | 77 | |||||||||||||||||||||
U.K. pension settlement expense | U.K. pension settlement expense | 140 | — | — | ||||||||||||||||||||||||
Other non-operating (expense) income, net | (4 | ) | 13 | 6 | Other non-operating (expense) income, net | 7 | — | (5) | ||||||||||||||||||||
Gain (loss) on sale of businesses | 1 | — | (10 | ) | ||||||||||||||||||||||||
Gain on sale of businesses | Gain on sale of businesses | 1 | 2 | — | ||||||||||||||||||||||||
Income before taxes | $ | 416 | $ | 585 | $ | 466 | Income before taxes | $ | 440 | $ | 511 | $ | 285 | |||||||||||||||
Depreciation and amortization: | Depreciation and amortization: | |||||||||||||||||||||||||||
Water Infrastructure | $ | 61 | $ | 66 | $ | 64 | Water Infrastructure | $ | 53 | $ | 51 | $ | 57 | |||||||||||||||
Applied Water | 24 | 22 | 23 | Applied Water | 19 | 22 | 24 | |||||||||||||||||||||
Measurement & Control Solutions | 144 | 144 | 122 | Measurement & Control Solutions | 137 | 145 | 142 | |||||||||||||||||||||
Regional selling locations (a) | 18 | 20 | 17 | Regional selling locations (a) | 19 | 20 | 20 | |||||||||||||||||||||
Corporate and other | 10 | 9 | 8 | Corporate and other | 8 | 7 | 8 | |||||||||||||||||||||
Total | $ | 257 | $ | 261 | $ | 234 | Total | $ | 236 | $ | 245 | $ | 251 | |||||||||||||||
Capital expenditures: | Capital expenditures: | |||||||||||||||||||||||||||
Water Infrastructure | $ | 79 | $ | 84 | $ | 58 | Water Infrastructure | $ | 71 | $ | 74 | $ | 48 | |||||||||||||||
Applied Water | 19 | 28 | 20 | Applied Water | 21 | 22 | 18 | |||||||||||||||||||||
Measurement & Control Solutions | 100 | 101 | 69 | Measurement & Control Solutions | 77 | 79 | 90 | |||||||||||||||||||||
Regional selling locations (b) | 19 | 16 | 18 | Regional selling locations (b) | 23 | 25 | 22 | |||||||||||||||||||||
Corporate and other | 9 | 8 | 5 | Corporate and other | 16 | 8 | 5 | |||||||||||||||||||||
Total | $ | 226 | $ | 237 | $ | 170 | Total | $ | 208 | $ | 208 | $ | 183 |
Year Ended December 31, | |||||||||||
(in millions) | 2019 | 2018 | 2017 | ||||||||
Pumps, accessories, parts and service | $ | 3,324 | $ | 3,322 | $ | 2,998 | |||||
Other (a) | 1,925 | 1,885 | 1,709 | ||||||||
Total | $ | 5,249 | $ | 5,207 | $ | 4,707 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Pumps, accessories, parts and service | $ | 3,728 | $ | 3,442 | $ | 3,120 | |||||||||||
Other (a) | 1,794 | 1,753 | 1,756 | ||||||||||||||
Total | $ | 5,522 | $ | 5,195 | $ | 4,876 |
Total Assets | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Water Infrastructure | $ | 1,302 | $ | 1,289 | $ | 1,255 | |||||||||||
Applied Water | 1,132 | 1,093 | 1,005 | ||||||||||||||
Measurement & Control Solutions | 3,126 | 3,198 | 3,345 | ||||||||||||||
Regional selling locations (a) | 844 | 1,503 | 1,413 | ||||||||||||||
Corporate and other (b) | 1,548 | 1,193 | 1,732 | ||||||||||||||
Total | $ | 7,952 | $ | 8,276 | $ | 8,750 |
Total Assets | |||||||||||
(in millions) | 2019 | 2018 | 2017 | ||||||||
Water Infrastructure | $ | 1,268 | $ | 1,233 | $ | 1,232 | |||||
Applied Water | 1,016 | 1,051 | 1,002 | ||||||||
Measurement & Control Solutions | 3,497 | 3,576 | 3,198 | ||||||||
Regional selling locations (a) | 1,375 | 1,181 | 1,119 | ||||||||
Corporate and other (b) | 554 | 181 | 309 | ||||||||
Total | $ | 7,710 | $ | 7,222 | $ | 6,860 |
Revenue | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
United States | $ | 2,573 | $ | 2,280 | $ | 2,297 | |||||||||||
Western Europe | 1,411 | 1,414 | 1,259 | ||||||||||||||
Emerging Markets | 1,074 | 1,066 | 919 | ||||||||||||||
Other | 464 | 435 | 401 | ||||||||||||||
Total | $ | 5,522 | $ | 5,195 | $ | 4,876 |
Property, Plant & Equipment | |||||||||||||||||
December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
United States | $ | 239 | $ | 251 | $ | 253 | |||||||||||
Western Europe | 227 | 231 | 235 | ||||||||||||||
Emerging Markets | 133 | 132 | 139 | ||||||||||||||
Other | 31 | 30 | 30 | ||||||||||||||
Total | $ | 630 | $ | 644 | $ | 657 |
Revenue | |||||||||||
Year Ended December 31, | |||||||||||
(in millions) | 2019 | 2018 | 2017 | ||||||||
United States | $ | 2,554 | $ | 2,424 | $ | 2,161 | |||||
Europe | 1,380 | 1,449 | 1,335 | ||||||||
Asia Pacific | 659 | 660 | 611 | ||||||||
Other | 656 | 674 | 600 | ||||||||
Total | $ | 5,249 | $ | 5,207 | $ | 4,707 |
Property, Plant & Equipment | |||||||||||
December 31, | |||||||||||
(in millions) | 2019 | 2018 | 2017 | ||||||||
United States | $ | 274 | $ | 281 | $ | 258 | |||||
Europe | 249 | 250 | 259 | ||||||||
Asia Pacific | 67 | 66 | 85 | ||||||||
Other | 68 | 59 | 41 | ||||||||
Total | $ | 658 | $ | 656 | $ | 643 |
(in millions) | 2019 | 2018 | 2017 | (in millions) | 2022 | 2021 | 2020 | |||||||||||||||||||||
Balance at beginning of year | $ | 25 | $ | 25 | $ | 21 | Balance at beginning of year | $ | 35 | $ | 38 | $ | 25 | |||||||||||||||
Additions charged to expense | 3 | 5 | 5 | Additions charged to expense | 5 | 2 | 25 | |||||||||||||||||||||
Deductions/other | (3 | ) | (5 | ) | (1 | ) | Deductions/other | (6) | (5) | (12) | ||||||||||||||||||
Balance at end of year | $ | 25 | $ | 25 | $ | 25 | Balance at end of year | $ | 34 | $ | 35 | $ | 38 |
2019 Quarter Ended | ||||||||||||||||
(in millions, except per share amounts) | Dec. 31 | Sept. 30 | June 30 | Mar. 31 | ||||||||||||
Revenue | $ | 1,371 | $ | 1,296 | $ | 1,345 | $ | 1,237 | ||||||||
Gross profit | 537 | 509 | 526 | 474 | ||||||||||||
Operating income | 195 | 11 | 171 | 109 | ||||||||||||
Net income attributable to Xylem | $ | 118 | $ | 65 | $ | 139 | $ | 79 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.66 | $ | 0.36 | $ | 0.77 | $ | 0.44 | ||||||||
Diluted | $ | 0.65 | $ | 0.36 | $ | 0.77 | $ | 0.43 |
2018 Quarter Ended | ||||||||||||||||
(in millions, except per share amounts) | Dec. 31 | Sept. 30 | June 30 | Mar. 31 | ||||||||||||
Revenue | $ | 1,386 | $ | 1,287 | $ | 1,317 | $ | 1,217 | ||||||||
Gross profit | 542 | 505 | 519 | 460 | ||||||||||||
Operating income | 194 | 176 | 171 | 113 | ||||||||||||
Net income attributable to Xylem | $ | 225 | $ | 130 | $ | 115 | $ | 79 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 1.25 | $ | 0.73 | $ | 0.64 | $ | 0.44 | ||||||||
Diluted | $ | 1.24 | $ | 0.72 | $ | 0.64 | $ | 0.43 |
(a) | (1) | The Index to Consolidated Financial Statements of the Registrant under Item 8 of this Report is incorporated herein by reference as the list of Financial Statements required as part of this Report. | ||||||
(2) | Financial Statement Schedules — All financial statement schedules have been omitted because they are not applicable or the required information is shown in the financial statements or notes thereto. | |||||||
(3) | Exhibits — See exhibits listed under Part (b) below. |
Exhibit Number | Description | Location | ||||||||||||
Distribution Agreement, dated as of October 25, 2011, among ITT Corporation, Exelis Inc. and Xylem Inc. | Incorporated by reference to Exhibit 10.1 of ITT Corporation’s Form 10-Q Quarterly Report filed on October 28, 2011 (CIK No. 216228, File No. 1-5672). | |||||||||||||
Agreement and Plan of Merger, dated as of January 22, 2023, among Xylem Inc., Fore Merger Sub, Inc. and Evoqua Water Technologies Corp. | Incorporated by reference to Exhibit 2.1 of Xylem Inc.’s Form 8-K filed on January 23, 2023 (CIK No. 1524472), File No. 1-35229) | |||||||||||||
Fourth Amended and Restated Articles of Incorporation of Xylem Inc. | Incorporated by reference to Exhibit 3.1 of Xylem Inc.’s Form 8-K filed on May 15, 2017 (CIK No. 1524472, File No. 1-35229). | |||||||||||||
Incorporated by reference to Exhibit 3.1 of Xylem Inc.’s Form 8-K filed on | ||||||||||||||
Description of securities registered under Section 12 of the Exchange Act | Filed herewith. | |||||||||||||
Indenture, dated as of September 20, 2011, between Xylem Inc., ITT Corporation, as initial guarantor, and Union Bank, N.A., as trustee. | Incorporated by reference to Exhibit 4.2 of ITT Corporation’s Form 8-K | |||||||||||||
Senior Indenture, dated March 11, 2016, by and between the Company and Deutsche Bank Trust Company Americas, as trustee. | Incorporated by reference to Exhibit 4.1 of Xylem Inc.’s Form 8-K filed on March 11, 2016 (CIK No. 1524472, File No. 1-35229). | |||||||||||||
First Supplemental Indenture, dated March 11, 2016, by and between the Company and Deutsche Bank Trust Company Americas, as trustee. | Incorporated by reference to Exhibit 4.2 of Xylem Inc.’s Form 8-K filed on March 11, 2016 (CIK No. 1524472, File No. 1-35229) | |||||||||||||
Third Supplemental Indenture, dated October 11, 2016, by and between the Company and Deutsche Bank Trust Company Americas, as trustee. | Incorporated by reference to Exhibit 4.1 of Xylem Inc.’s Form 8-K filed on October 11, 2016 (CIK No. 1524472, File No. 1-35229). | |||||||||||||
Incorporated by reference to Exhibit | ||||||||||||||
Form of Xylem Inc. 3.250% Senior Notes due 2026. | Incorporated by reference to Exhibit 4.1 of Xylem Inc.’s Form 8-K filed on October 11, 2016 (CIK No. 1524472, File No. 1-35229). | |||||||||||||
Form of 1.950% Senior Notes due 2028. | Incorporated by reference to Exhibit 4.1 of Xylem Inc.’s Form 8-K filed on June 26, 2020 (CIK 1524472, File No. 1-35229) | |||||||||||||
Exhibit Number | Description | Location | ||||||||||||
Form of 2.250% Senior Notes due 2031. | Incorporated by reference to Exhibit 4.1 of Xylem Inc.’s Form 8-K filed on June 26, 2020 (CIK 1524472, File No. 1-35229) | |||||||||||||
Form of Xylem Inc. 4.375% Senior Notes due 2046. | Incorporated by reference to Exhibit 4.1 of Xylem Inc.’s Form 8-K filed on October 11, 2016 (CIK No. 1524472, File No. 1-35229). | |||||||||||||
# | Incorporated by reference to Exhibit 10.6 of | |||||||||||||
# | Xylem Retirement Savings Plan. | Incorporated by reference to Exhibit 10.1 of Xylem Inc.’s Form 10-Q Quarterly Report filed on July 30, 2013 (CIK No. 1524472, File No. 1-35229). | ||||||||||||
# | Xylem Supplemental Retirement Savings Plan. | Incorporated by reference to Exhibit 10.11 of Xylem Inc.’s Form 10-Q Quarterly Report filed on November 21, 2011 (CIK No. 1524472, File No. 1-35229). | ||||||||||||
# | Xylem Deferred Compensation Plan. | Incorporated by reference to Exhibit 10.12 of Xylem Inc.'s Form 10-K Annual Report filed on February 23, 2017 (CIK No. 1524472, File No. 1-35229). | ||||||||||||
# | Xylem Annual Incentive Plan for the Senior Leadership Team (formerly "Annual Incentive Plan for Executive Officers") restated, with administrative changes only, on July 11, 2022 | Incorporated by reference to Exhibit 10.1 of Xylem Inc.'s Form 10-Q Quarterly Report filed on August 2, 2022 (CIK No. 1524472, File No. 1-35229). | ||||||||||||
# | Xylem Special Senior Executive Severance Pay Plan, restated, with administrative changes only, on July 11, 2022 | Incorporated by reference to Exhibit 10.15 of Xylem Inc.'s Form 10-Q Quarterly Report filed on August 2, 2022 (CIK No. 1524472, File No. 1-35229). | ||||||||||||
# | Xylem Senior Executive Severance Pay Plan (Amended as of May 10, 2017). | Incorporated by reference to Exhibit 10.1 of Xylem Inc.'s Form 10-Q Quarterly Report filed on August 1, 2017 (CIK No. 1524472, File No. 1-35229). | ||||||||||||
# | Form of Xylem 2011 Omnibus Incentive Plan Non-Qualified Stock Option Award Agreement (2015). | Incorporated by reference to Exhibit 10.1 of Xylem Inc.’s Form 10-K Annual Report filed on February 26, 2015 (CIK No. 1524472, File No. 1-35229). | ||||||||||||
# | Incorporated by reference to Exhibit | |||||||||||||
# | Form of Xylem Non-Qualified Stock Option Award Agreement (Amended as of February 24, 2016). | Incorporated by reference to Exhibit 10.7 of Xylem Inc.'s Form 10-K Annual Report filed on February 26, 2016 (CIK No. 1524472, File No. 1-35229). | ||||||||||||
# | Form of Xylem Restricted Stock Unit Agreement (Amended as of February | Incorporated by reference to Exhibit | ||||||||||||
# | Form of Xylem Performance Share Unit Agreement (Amended as of February | Incorporated by reference to Exhibit 10.32 of Xylem Inc.'s Form 10-K Annual Report filed on February 23, 2018 (CIK No. 1524472, File No. 1-35229). | ||||||||||||
# | Form of Xylem 2011 Omnibus Incentive Plan Non-Qualified Stock Option Award Agreement (2021). | Incorporated by reference to Exhibit | ||||||||||||
# | Form of 2011 Omnibus Incentive Plan Performance Share Unit Agreement (2021). | Incorporated by reference to Exhibit 10.4 of Xylem | ||||||||||||
# | Form of 2011 Omnibus Incentive Plan Restricted Stock Unit Agreement (2021). | Incorporated by reference to Exhibit 10.5 of Xylem Inc.’s Form 10-Q Quarterly Report filed on May 4, 2021 (CIK No. 1524472, File No. 1-35229). | ||||||||||||
Exhibit Number | Description | Location | ||||||||||||
# | Form of 2011 Omnibus Incentive Plan ESG Performance Share Unit Agreement (2021). | Incorporated by reference to Exhibit 10.6 of Xylem Inc.’s Form 10-Q Quarterly Report filed on May 4, 2021 (CIK No. 1524472, File No. 1-35229). | ||||||||||||
# | Form of Xylem 2011 Omnibus Incentive Plan Non-Qualified Stock Option Award Agreement for Certain Executives and Executive Officers as Approved by the Leadership Development & Compensation Committee | Incorporated by reference to Exhibit 10.1 of Xylem Inc.’s Form 10-Q Quarterly Report filed on | ||||||||||||
# | Incorporated by reference to Exhibit | |||||||||||||
# | Incorporated by reference to Exhibit | |||||||||||||
# | Xylem Deferred Compensation Plan for Non-Employee Directors. | Incorporated by reference to Exhibit 10.13 of Xylem Inc.’s Form 10-Q Quarterly Report filed on November 21, 2011 (CIK No. 1524472, File No. 1-35229). | ||||||||||||
# | Form of Non-Employee Director Restricted Stock Unit Award Agreement. | Incorporated by reference to Exhibit 10.1 of Xylem Inc.’s Form 10-Q Quarterly Report filed on July 30, 2015 (CIK No. 1524472, File No. 1-35229). | ||||||||||||
# | Incorporated by reference to Exhibit | |||||||||||||
# | ||||||||||||||
Letter Agreement between Xylem Inc. and Patrick K. Decker. | Incorporated by reference to Exhibit 10.1 of Xylem Inc.'s Form 10-Q Quarterly Report filed on April 29, 2014 (CIK No. 1524472, File No. 1-35229). | |||||||||||||
# | Incorporated by reference to Exhibit | |||||||||||||
# | Incorporated by reference to Exhibit | |||||||||||||
# | Letter Agreement between Xylem Inc. and Matthew Pine. | Incorporated by reference to Exhibit 10.1 of Xylem Inc.’s Form 10-Q Quarterly Report filed on May 4, 2021 (CIK No. 1524472, File No. 1-35229). | ||||||||||||
# | Individual Employment Contract between Xylem Europe GmbH and Hayati Yarkadas. | Incorporated by reference to Exhibit 10.2 of Xylem Inc.’s Form 10-Q Quarterly Report filed on May 4, 2021 (CIK No. 1524472, File No. 1-35229). | ||||||||||||
# | Separation Agreement between Xylem Inc. and Colin R. Sabol | Incorporated by reference to Exhibit 10.3 of Xylem Inc.’s Form 10-Q Quarterly Report filed on August 2, 2022 (CIK No. 1524472, File No. 1-35229) | ||||||||||||
Five-Year Revolving Credit Facility Agreement, dated as of March 5, 2019 among Xylem Inc. and the Lenders party thereto. | Incorporated by reference to Exhibit 10.34 of Xylem Inc.’s Form 8-K filed on March 5, 2019 (CIK No. 1524472, File No. 1-35229). | |||||||||||||
Amendment No. 1, dated June 22, 2020, to the Five-Year Revolving Credit Facility Agreement, dated as of March 5, 2019, each among Xylem Inc. and Citibank, N.A., as administrative agent | Incorporated by reference to Exhibit 10.34.1 of Xylem Inc.’s Form 8-K filed on June 23, 2020 (CIK No. 1524472, File No. 1-35229). | |||||||||||||
Subsidiaries of the Registrant. | Filed herewith. | |||||||||||||
Consent of Independent Registered Public Accounting Firm. | Filed herewith. | |||||||||||||
Exhibit Number | Description | Location | ||||||||||||
Certification pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | Filed herewith. | |||||||||||||
Certification pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | Filed herewith. | |||||||||||||
Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | This Exhibit is intended to be furnished in accordance with Regulation S-K Item 601(b) (32) (ii) and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference. | |||||||||||||
Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | This Exhibit is intended to be furnished in accordance with Regulation S-K Item 601(b) (32) (ii) and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference. | |||||||||||||
101.0 | The following materials from Xylem Inc.’s Annual Report on Form 10-K for the year ended December 31, and (vi) Notes to Consolidated Financial Statements. | The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document. |
The cover page from Xylem Inc.'s Annual Report on Form 10-K for the year ended December 31, |
XYLEM INC. | |||||
(Registrant) | |||||
/s/ Geri McShane | |||||
Geri McShane | |||||
Vice President, Controller and Chief Accounting Officer |
February 24, 2023 | /s/ Patrick K. Decker | |||||||
Patrick K. Decker | ||||||||
President and Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
February 24, 2023 | /s/ Sandra E. Rowland | |||||||
Sandra E. Rowland | ||||||||
Senior Vice President and Chief Financial Officer | ||||||||
February 24, 2023 | /s/ Geri McShane | |||||||
Geri McShane | ||||||||
Vice President, Controller and Chief Accounting Officer | ||||||||
February 24, 2023 | /s/ Robert F. Friel | |||||||
Robert F. Friel, Board Chair | ||||||||
February 24, 2023 | /s/ Jeanne Beliveau-Dunn | |||||||
Jeanne Beliveau-Dunn, Director | ||||||||
February 24, 2023 | /s/ Victoria D. Harker | |||||||
Victoria D. Harker, Director | ||||||||
February 24, 2023 | /s/ Steven R. Loranger | |||||||
Steven R. Loranger, Director | ||||||||
February 24, 2023 | /s/ Mark D. Morelli | |||||||
Mark D. Morelli, Director | ||||||||
February 24, 2023 | /s/ Jerome A. Peribere | |||||||
Jerome A. Peribere, Director | ||||||||
February 24, 2023 | /s/ Markos I. Tambakeras | |||||||
Markos I. Tambakeras, Director | ||||||||
February 24, 2023 | /s/ Lila Tretikov | |||||||
Lila Tretikov, Director | ||||||||
February 24, 2023 | ||||||||
Uday Yadav, Director | ||||||||