Xylem (XYL) 10-Q 30 Jul 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 24, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Xylem Inc.
Entity Central Index Key	1,524,472
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		181,499,151

Condensed Consolidated Income S

Condensed Consolidated Income Statements (Unaudited) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Revenue	$ 920	$ 1,005	$ 1,757	$ 1,911
Cost of revenue	572	617	1,094	1,181
Gross profit	348	388	663	730
Selling, general and administrative expenses	218	242	424	466
Research and development expenses	25	27	48	54
Restructuring charges	1	3	4	18
Operating income	104	116	187	192
Interest expense	14	13	28	27
Other non-operating income, net	1	1	0	0
Gain from sale of businesses	0	0	9	0
Income before taxes	91	104	168	165
Income tax expense	17	18	30	30
Net income	$ 74	$ 86	$ 138	$ 135
Earnings per share:
Basic (usd per share)	$ 0.41	$ 0.47	$ 0.76	$ 0.74
Diluted (usd per share)	$ 0.41	$ 0.47	$ 0.76	$ 0.73
Weighted average number of shares:
Basic (in shares)	181,474	183,377	181,784	183,962
Diluted (in shares)	182,313	184,519	182,688	185,144
Dividends declared per share (usd per share)	$ 0.1408	$ 0.1280	$ 0.2816	$ 0.256

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 74	$ 86	$ 138	$ 135
Other comprehensive income (loss), before tax:
Foreign currency translation adjustment	26	3	(103)	1
Foreign currency gain reclassified into net income	0	0	(8)	0
Net change in cash flow hedges:
Unrealized losses	0	(7)	(5)	(8)
Amount of loss (gain) reclassified into net income	7	(1)	12	(1)
Net change in postretirement benefit plans:
Net loss	0	(7)	0	(7)
Amortization of net actuarial loss into net income	4	3	8	6
Other comprehensive income (loss), before tax	37	(9)	(96)	(9)
Income tax impact related to items of other comprehensive income (loss)	2	(1)	3	0
Other comprehensive income (loss), net of tax	35	(8)	(99)	(9)
Comprehensive income	$ 109	$ 78	$ 39	$ 126

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 600	$ 663
Receivables, less allowances for discounts and doubtful accounts of $31 and $34 in 2015 and 2014, respectively	772	771
Inventories	498	486
Prepaid and other current assets	149	144
Deferred income tax assets	37	38
Total current assets	2,056	2,102
Property, plant and equipment, net	431	461
Goodwill	1,592	1,635
Other intangible assets, net	442	470
Other non-current assets	198	192
Total assets	4,719	4,860
Current liabilities:
Accounts payable	315	338
Accrued and other current liabilities	441	481
Short-term borrowings and current maturities of long-term debt	81	89
Total current liabilities	837	908
Long-term debt	1,196	1,195
Accrued postretirement benefits	377	388
Deferred income tax liabilities	152	158
Other non-current accrued liabilities	77	84
Total liabilities	$ 2,639	$ 2,733
Commitments and contingencies (Note 17)
Stockholders’ equity:
Authorized 750.0 shares, issued 189.6 shares and 188.9 shares in 2015 and 2014, respectively	$ 2	$ 2
Capital in excess of par value	1,815	1,796
Retained earnings	734	648
Treasury stock – at cost 8.1 shares and 6.6 shares in 2015 and 2014, respectively	(273)	(220)
Accumulated other comprehensive loss	(198)	(99)
Total stockholders’ equity	2,080	2,127
Total liabilities and stockholders’ equity	$ 4,719	$ 4,860

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowances for discounts and doubtful accounts on receivables	$ 0	$ 34
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	750,000,000	750,000,000
Common Stock, shares issued	0	189,600,000
Treasury Stock, shares	0	8,100,000

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating Activities
Net income	$ 138	$ 135
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	47	47
Amortization	22	25
Share-based compensation	8	9
Restructuring charges	4	18
Gain from sale of businesses	(9)	0
Other, net	3	(1)
Payments for restructuring	(9)	(17)
Changes in assets and liabilities (net of acquisitions):
Changes in receivables	(28)	(32)
Changes in inventories	(27)	(53)
Changes in accounts payable	3	2
Other, net	(29)	(35)
Net Cash – Operating activities	123	98
Investing Activities
Capital expenditures	(57)	(48)
Proceeds from sale of businesses	1	0
Proceeds from the sale of property, plant and equipment	0	1
Other, net	(3)	0
Net Cash – Investing activities	(53)	(47)
Financing Activities
(Repayment) issuance of short-term debt	(2)	1
Repurchase of common stock	(53)	(102)
Proceeds from exercise of employee stock options	9	17
Dividends paid	(51)	(47)
Other, net	1	1
Net Cash – Financing activities	(96)	(130)
Effect of exchange rate changes on cash	(37)	(4)
Net change in cash and cash equivalents	(63)	(83)
Cash and cash equivalents at beginning of year	663	533
Cash and cash equivalents at end of period	600	450
Cash paid during the period for:
Interest	26	26
Income taxes (net of refunds received)	$ 42	$ 50

Background and Basis of Present

Background and Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Background and Basis of Presentation	Background and Basis of Presentation Background Xylem Inc. ("Xylem" or the "Company") is a leading equipment and service provider for water and wastewater applications with a broad portfolio of products and services addressing the full cycle of water, from collection, distribution and use to the return of water to the environment. Xylem was incorporated in Indiana on May 4, 2011. Xylem has two reportable segments, Water Infrastructure and Applied Water. The Water Infrastructure segment focuses on the transportation, treatment and testing of water, offering a range of products including water and wastewater pumps, treatment and testing equipment, and controls and systems. The Applied Water segment serves many of the primary uses of water and focuses on the residential, commercial, industrial and agricultural markets. The Applied Water segment’s major products include pumps, valves, heat exchangers, controls and dispensing equipment. Hereinafter, except as otherwise indicated or unless the context otherwise requires, "Xylem," "we," "us," "our" and the "Company" refer to Xylem Inc. and its subsidiaries. Basis of Presentation The interim condensed consolidated financial statements reflect our financial position and results of operations in conformity with accounting principles generally accepted in the United States of America ("GAAP"). All transactions between our businesses have been eliminated. The unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and, in the opinion of management, reflect all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation of the financial position and results of operations for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such SEC rules. We believe that the disclosures made are adequate to make the information presented not misleading. We consistently applied the accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2014 ("2014 Annual Report") in preparing these unaudited condensed consolidated financial statements, with the exception of accounting standard updates described in Note 2. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our 2014 Annual Report. Certain prior year amounts have been reclassified to conform to the current year presentation. In 2014, we began implementing an organizational redesign to integrate our commercial teams within geographical regions. While this organizational redesign did not change our reportable segments, it had implications on how we manage our business. These changes and the related measurement system were effective in the fourth quarter 2014 and as a result, we commenced reporting our financial performance at such time based on the new organizational design. The 2014 segment information presented herein has been recast from amounts previously reported to reflect these changes. The recast financial information does not represent a restatement of previously issued financial statements and the changes had no impact on our historical consolidated financial position or results of operations. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, postretirement obligations and assets, revenue recognition, income tax contingency accruals and valuation allowances, goodwill impairment testing and contingent liabilities. Actual results could differ from these estimates. Additionally, our interim condensed consolidated financial statements may not be indicative of our future performance. Our quarterly financial periods end on the Saturday closest to the last day of the calendar quarter, except for the fourth quarter which ends on December 31. For ease of presentation, the condensed consolidated financial statements included herein are described as ending on the last day of the calendar quarter.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	6 Months Ended
	Jun. 30, 2015
Accounting Changes and Error Corrections [Abstract]
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Pronouncements Not Yet Adopted In July 2015, the Financial Accounting Standards Board (“FASB”) issued guidance regarding simplifying the measurement of inventory. Under prior guidance, inventory is measured at the lower of cost or market, where market is defined as replacement cost, with a ceiling of net realizable value and a floor or net realizable value less a normal profit margin. The amended guidance requires the measurement of inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance is effective prospectively for interim and annual periods beginning after December 15, 2016 and early application is permitted. We are evaluating the impact of the guidance on our financial condition, results of operations and financial statement disclosures. In May 2015, the FASB issued guidance regarding the disclosure of investments which are valued at fair value using the net asset value per share practical expedient. The amended guidance removes the requirement to categorize such investments within the fair value hierarchy. The amendments also remove the requirement to make certain disclosures for all investment that are eligible to be measured at fair value using the net asset value per share practical expedient, instead limiting such disclosures to those investments measured at fair value using the practical expedient. This guidance is effective for interim and annual periods beginning after December 15, 2015. The guidance must be applied retrospectively and early adoption is permitted. We are evaluating the impact of the guidance on our financial condition, results of operations and financial statement disclosures. In May 2014, the FASB issued guidance on recognizing revenue from contracts with customers. The guidance outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the model is that an entity recognizes revenue to portray the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also expands disclosure requirements regarding revenue recognition. This guidance is effective for interim and annual reporting periods beginning after December 15, 2017 and may be applied retrospectively to each prior period presented or with the cumulative effect recognized as of the date of initial application. Early adoption is permitted for interim and annual reporting periods beginning after December 15, 2016. We are evaluating the impact of the guidance on our financial condition and results of operations. Recently Adopted Pronouncements In April 2015, the FASB issued guidance which changes the presentation of debt issuance costs in the balance sheet. Under prior guidance, debt issuance costs are reflected on the balance sheet as an asset. This amendment requires such costs to be reflected as a direct deduction to the related debt liability, with retrospective application upon adoption. We elected to early adopt this standard effective in the first quarter of 2015. Accordingly, $4 million of debt issuance costs are now reflected within long-term debt as of June 30, 2015 and December 31, 2014. These costs were previously recorded within other non-current assets. In April 2015, the FASB issued guidance regarding whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license then the software license element of the arrangement should be accounted for in a manner that is consistent with accounting for the acquisition of other software licenses. If a cloud computing arrangement does not include a software license then the arrangement should be accounted for as a service contract. This guidance is effective for interim and annual periods beginning after December 15, 2015. The guidance may be applied (1) retrospectively or (2) prospectively to arrangements entered into, or materially modified after the effective date. Early adoption is permitted. We elected to early adopt this standard effective in the second quarter of 2015 with retrospective application. Our adoption of this guidance did not have any impact on our financial condition or results of operations. In February 2015, FASB issued guidance which amends the requirements to determine whether a company needs to consolidate certain legal entities into its reported financial statements. Specifically, the amendment: (1) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities, (2) eliminates the presumption that a general partner should consolidate a limited partnership and (3) affects the consolidation analysis of reporting entities that are involved with VIEs. This guidance is effective for interim and annual reporting periods beginning after December 15, 2015 and may be applied retrospectively to each prior period presented or with the cumulative effect recognized as of the date of initial application. We elected to early adopt this standard effective in the second quarter of 2015 with retrospective application. Our adoption of this guidance did not have any impact on our financial condition or results of operations. In January 2015, the FASB issued guidance which eliminates from GAAP the concept of an extraordinary item. Under prior guidance, an event or transaction must be unusual in nature and must occur infrequently to be considered an extraordinary item. Additionally, under prior guidance extraordinary items are separately presented in a company’s income statement and disclosed in the footnotes to the company’s financial statements. As a result of the new guidance regarding extraordinary items, a company will no longer (1) segregate an extraordinary item from the results of ordinary operations, (2) separately present an extraordinary item on its income statement, and (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. We elected to early adopt this standard effective in the first quarter of 2015 with retrospective application. Our adoption of this guidance did not have any impact on our financial condition or results of operations. In June 2014, as a result of inconsistency in practice, the FASB issued guidance related to the recognition of compensation on employee share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The standard states that the performance target should not be reflected in estimating the grant date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. We elected to early adopt this standard effective in the first quarter of 2015 with retrospective application. Our adoption of this guidance did not have any impact on our financial condition or results of operations as we were using the accounting prescribed in the new guidance. In April 2014, the FASB issued guidance related to the reporting of discontinued operations. The guidance states that the disposal of a business or operation is required to be reported as discontinued operations if the disposal represents a strategic shift that will have a major effect on an entity’s operations and financial results. The guidance also expands disclosures about discontinued operations and the disposal of significant businesses that did not qualify for discontinued operations presentation. This standard is effective prospectively, for disposals (or businesses that qualify as “held for sale”) that occur within annual periods beginning on or after December 15, 2014 and interim periods within those years. Our adoption of this guidance effective in the first quarter of 2015 did not have any impact on our financial condition or results of operations. In January 2014, the FASB issued guidance related to service concession arrangements. A service concession arrangement is an arrangement between a public-sector entity grantor and an operating entity under which the operating entity operates the grantor's infrastructure (for example, airports, roads and bridges). The guidance states that service concession arrangements should not be accounted for under the guidance of Accounting Standards Codification Topic 840, Leases, but rather other guidance as deemed appropriate. This guidance is effective for interim and reporting periods beginning on or after December 15, 2014. The guidance requires opening retained earnings in the year of adoption to reflect the cumulative historical impact of any arrangements existing at the date of adoption, and the new guidance to be applied to the financial statements on a prospective basis. Our adoption of this guidance effective in the first quarter of 2015 did not have any impact on our financial condition or results of operations.

Divestitures

Divestitures	6 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
Divestitures	Divestitures There were no divestitures during the three months ended June 30, 2015 . For the six months ended June 30, 2015, we divested two businesses for $1 million of cash, which were not material, individually or in the aggregate, to our results of operations or financial position. The sales resulted in a gain of $9 million , reflected in gain from sale of businesses in our Condensed Consolidated Income Statement.

Restructuring Charges

Restructuring Charges	6 Months Ended
	Jun. 30, 2015
Restructuring and Related Activities [Abstract]
Restructuring Charges	Restructuring Charges During the three and six months ended June 30, 2015 , we recognized restructuring charges of $1 million and $4 million , respectively. We incurred these charges primarily in an effort to reposition our European and North American businesses to optimize our cost structure and improve our operational efficiency and effectiveness. The charges include the elimination of headcount and consolidation of facilities within our Water Infrastructure segment. During the three and six months ended June 30, 2014 , we recognized restructuring charges of $3 million and $18 million , respectively, within both our Water Infrastructure and Applied Water segments for the same aforementioned purposes for which we incurred the 2015 charges. The following table presents the components of restructuring expense for the three and six months ended June 30, 2015 and 2014 . Three Months Ended Six Months Ended June 30, June 30, (in millions) 2015 2014 2015 2014 By component: Severance and other charges $ 1 $ 3 $ 5 $ 18 Reversal of restructuring accruals — — (1 ) — Total restructuring charges $ 1 $ 3 $ 4 $ 18 By segment: Water Infrastructure $ 1 $ 2 $ 4 $ 12 Applied Water — 1 — 6 The following table displays a rollforward of the restructuring accruals, presented on our Condensed Consolidated Balance Sheets within accrued and other current liabilities, for the six months ended June 30, 2015 and 2014 . (in millions) 2015 2014 Restructuring accruals - January 1 $ 12 $ 13 Restructuring charges 4 18 Cash payments (9 ) (17 ) Foreign currency and other (1 ) — Restructuring accruals - June 30 $ 6 $ 14 By segment: Water Infrastructure $ 3 $ 7 Applied Water — 4 Regional selling locations (a) 3 3 (a) Regional selling locations consist primarily of selling and marketing organizations that incurred restructuring expense which was allocated to the segments. The liabilities associated with restructuring expense were not allocated to the segments. The following is a rollforward for the six months ended June 30, 2015 and 2014 of employee position eliminations associated with restructuring activities. 2015 2014 Planned reductions - January 1 133 51 Additional planned reductions 80 233 Actual reductions (106 ) (172 ) Planned reductions - June 30 107 112 Total expected costs associated with actions that commenced during the six months ended June 30, 2015 are approximately $6 million and are all within Water Infrastructure. These costs primarily consist of severance charges. Related to these actions, we incurred $1 million and $3 million for Water Infrastructure during the three and six months ended June 30, 2015 , respectively. We currently expect activity related to these actions to continue through the second quarter of 2016. Total expected costs associated with actions that commenced during 2014 are approximately $19 million for Water Infrastructure. Approximately $18 million of the expected cost was incurred in 2014, no additional costs were incurred during the 3 months ended June 30, 2015, and $1 million was incurred during the six months ended June 30, 2015 . The Water Infrastructure actions commenced in 2014 are substantially complete. Total expected costs associated with actions that commenced during 2014 are approximately $6 million for Applied Water. Approximately $6 million of the expected cost was incurred in 2014, substantially all of the costs associated with these actions have been incurred.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our quarterly provision for income taxes is measured using an estimated annual effective tax rate, adjusted for discrete items within periods presented. The comparison of our effective tax rate between periods is significantly impacted by the level and mix of earnings and losses by tax jurisdiction, foreign income tax rate differentials and amount of permanent book-to-tax differences. The income tax provision for the three months ended June 30, 2015 was $17 million resulting in an effective tax rate of 18.1% , compared to $18 million resulting in an effective tax rate of 17.2% for the same period in 2014 . The income tax provision for both the six months ended June 30, 2015 and 2014 was $30 million . The effective tax rate for the six months ended June 30, 2015 was 17.8% , compared to 17.9% for the same period in 2014 . The effective tax rate was lower than the United States federal statutory rate in each period primarily due to geographic mix of earnings. Unrecognized Tax Benefits We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The amount of unrecognized tax benefits at June 30, 2015 was $41 million which, if ultimately recognized, will reduce our annual effective tax rate. We do not believe that the unrecognized tax benefits will significantly change within the next twelve months . We classify interest expense relating to unrecognized tax benefits as a component of other non-operating expense, net and tax penalties as a component of income tax expense in our Condensed Consolidated Income Statements. As of June 30, 2015 , we had less than $1 million of interest accrued for unrecognized tax benefits.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The following is a reconciliation of the shares used in calculating basic and diluted net earnings per share. Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net income (in millions) $ 74 $ 86 $ 138 $ 135 Shares (in thousands): Weighted average common shares outstanding 181,422 183,328 181,735 183,917 Add: Participating securities (a) 52 49 49 45 Weighted average common shares outstanding — Basic 181,474 183,377 181,784 183,962 Plus incremental shares from assumed conversions: (b) Dilutive effect of stock options 513 659 522 659 Dilutive effect of restricted stock 326 483 382 523 Weighted average common shares outstanding — Diluted 182,313 184,519 182,688 185,144 Basic earnings per share $ 0.41 $ 0.47 $ 0.76 $ 0.74 Diluted earnings per share $ 0.41 $ 0.47 $ 0.76 $ 0.73 (a) Restricted stock awards containing rights to non-forfeitable dividends that participate in undistributed earnings with common shareholders are considered participating securities for purposes of computing earnings per share. (b) Incremental shares from stock options, restricted stock and performance share units are computed by the treasury stock method. The weighted average shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or were otherwise excluded under the treasury stock method. The treasury stock method calculates dilution assuming the exercise of all in-the-money options and vesting of restricted stock and performance share awards, reduced by the repurchase of shares with the proceeds from the assumed exercises, unrecognized compensation expense for outstanding awards and the estimated tax benefit of the assumed exercises. Performance share units will be included in the treasury stock calculation of diluted earnings per share upon achievement of underlying performance conditions. See Note 14 , "Share-Based Compensation Plans" for further detail on the performance share units. Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2015 2014 2015 2014 Stock options 2,800 2,851 2,717 2,798 Restricted stock 633 614 612 531 Performance shares 213 136 186 102

Inventories

Inventories	6 Months Ended
	Jun. 30, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories The components of total inventories are summarized as follows: (in millions) June 30, December 31, Finished goods $ 213 $ 194 Work in process 45 42 Raw materials 240 250 Total inventories $ 498 $ 486

Property, Plant and Equipment

Property, Plant and Equipment	6 Months Ended
	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, Plant and Equipment The components of total property, plant and equipment, net are as follows: (in millions) June 30, December 31, Land, buildings and improvements $ 247 $ 252 Machinery and equipment 646 655 Equipment held for lease or rental 211 207 Furniture and fixtures 85 87 Construction work in progress 36 41 Other 22 23 Total property, plant and equipment, gross 1,247 1,265 Less accumulated depreciation 816 804 Total property, plant and equipment, net $ 431 $ 461 Depreciation expense of $23 million and $47 million was recognized in the three and six months ended June 30, 2015 , respectively, and $24 million and $47 million for the three and six months ended June 30, 2014 , respectively.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Changes in the carrying value of goodwill by reportable segment for the six months ended June 30, 2015 are as follows: (in millions) Water Infrastructure Applied Water Total Balance as of January 1, 2015 $ 1,098 $ 537 $ 1,635 Activity in 2015 Foreign currency and other (29 ) (14 ) (43 ) Balance as of June 30, 2015 $ 1,069 $ 523 $ 1,592 Based on the results of our latest annual impairment tests, we determined that no impairment of goodwill existed as of the measurement date in 2014 . However, future goodwill impairment tests could result in a charge to earnings. We will continue to evaluate goodwill on an annual basis as of the beginning of our fourth quarter and whenever events and changes in circumstances indicate there may be a potential impairment. Other Intangible Assets Information regarding our other intangible assets is as follows: June 30, 2015 December 31, 2014 (in millions) Carrying Amount Accumulated Amortization Net Intangibles Carrying Amount Accumulated Amortization Net Intangibles Customer and distributor relationships $ 321 $ (130 ) $ 191 $ 331 $ (122 ) $ 209 Proprietary technology and patents 113 (51 ) 62 116 (49 ) 67 Trademarks 34 (18 ) 16 36 (17 ) 19 Software (a) 131 (91 ) 40 131 (92 ) 39 Other 8 (8 ) — 9 (9 ) — Indefinite-lived intangibles 133 — 133 136 — 136 $ 740 $ (298 ) $ 442 $ 759 $ (289 ) $ 470 (a) The December 31, 2014 carrying amount of software was previously included within Other non-current assets on the Condensed Consolidated Balance Sheets and is now being reflected within Other intangible assets to conform to a current period change in balance sheet presentation. Amortization expense related to finite-lived intangible assets was $11 million and $22 million for the three and six months ended June 30, 2015 , respectively, and $12 million and $25 million for the three and six months ended June 30, 2014 , respectively.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments Risk Management Objective of Using Derivatives We are exposed to certain risks arising from both our business operations and economic conditions and principally manage our exposures to these risks through management of our core business activities. Certain of our foreign operations expose us to fluctuations of foreign interest rates and exchange rates that may impact revenues, expenses, cash receipts and payments. We enter into derivative financial instruments to protect the value or fix the amount of certain cash flows in terms of the functional currency of the business unit with that exposure. Cash Flow Hedges of Foreign Exchange Risk We are exposed to fluctuations in various foreign currencies against our functional currencies. We use foreign currency derivatives including currency forward agreements to manage our exposure to fluctuations in the various exchange rates. Currency forward agreements involve fixing the foreign currency exchange rate for delivery of a specified amount of foreign currency on a specified date. Certain business units with exposure to foreign currency exchange risks have designated certain currency forward agreements as cash flow hedges of forecasted intercompany inventory purchases and sales. Our principal currency exposures relate to the Euro, Swedish Krona, British Pound, Canadian Dollar, Polish Zloty, Australian Dollar and Hungarian Forint. We held forward foreign exchange contracts with purchase notional amounts totaling $216 million and $355 million as of June 30, 2015 and December 31, 2014 , respectively. As of June 30, 2015 , our most significant foreign currency derivatives include contracts to purchase Swedish Krona and sell Euro, sell US Dollar and purchase Euro, and sell British Pound and purchase Euro. The purchased notional amounts associated with these currency derivatives are $82 million , $64 million and $28 million , respectively. As of December 31, 2014 , our most significant foreign currency derivatives include contracts to purchase Swedish Krona and sell Euro, sell US Dollar and purchase Euro, and sell British Pound and purchase Euro. The purchased notional amounts associated with these currency derivatives are $140 million , $85 million and $51 million , respectively. The table below presents the effect of our derivative financial instruments on the Condensed Consolidated Income Statements and Statements of Comprehensive Income. Three Months Ended Six Months Ended June 30, June 30, (in millions) 2015 2014 2015 2014 Derivatives in Cash Flow Hedges Foreign Exchange Contracts Amount of loss recognized in Other Comprehensive Income (a) $ — $ (7 ) $ (5 ) $ (8 ) Amount of loss (gain) reclassified from Other Comprehensive Income into revenue (a) 7 — 11 (1 ) Amount of (gain) loss reclassified from Other Comprehensive Income into cost of revenue (a) — (1 ) 1 — (a) Effective portion As of June 30, 2015 , $7 million of the net unrealized losses on cash flow hedges is expected to be reclassified into earnings in the next 12 months. The ineffective portion of the change in fair value of a cash flow hedge is excluded from effectiveness testing and is recognized immediately in selling, general and administrative expenses in the Condensed Consolidated Income Statements. For the three and six months ended June 30, 2015 and 2014 , the amounts were not material. The fair values of our foreign exchange contracts currently included in our hedging program were as follows: (in millions) June 30, December 31, Derivatives designated as hedging instruments Assets Other current assets $ 1 $ 1 Liabilities Other current liabilities (6 ) (13 ) Total fair value $ (5 ) $ (12 )

Accrued and Other Current Liabi

Accrued and Other Current Liabilities	6 Months Ended
	Jun. 30, 2015
Payables and Accruals [Abstract]
Accrued and Other Current Liabilities	Accrued and Other Current Liabilities The components of total accrued and other current liabilities are as follows: (in millions) June 30, December 31, Compensation and other employee benefits $ 159 $ 186 Customer-related liabilities 66 66 Accrued warranty costs 30 31 Accrued taxes 70 77 Other accrued liabilities 116 121 Total accrued and other current liabilities $ 441 $ 481

Credit Facilities and Long-Term

Credit Facilities and Long-Term Debt	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Credit Facilities and Long-Term Debt	Credit Facilities and Long-Term Debt Total debt outstanding is summarized as follows: (in millions) June 30, December 31, Short-term borrowings and current maturities of long-term debt $ 81 $ 89 Long-term debt 3.550% Senior Notes due 2016 (a) $ 600 $ 600 4.875% Senior Notes due 2021 (a) 600 600 Debt issuance costs (4 ) (4 ) Unamortized discount (b) — (1 ) Long-term debt $ 1,196 $ 1,195 Total debt $ 1,277 $ 1,284 (a) The fair value of our Senior Notes (as defined below) was determined using quoted prices in active markets for identical securities, which are considered Level 1 inputs. The fair value of our Senior Notes due 2016 (as defined below) was $616 million and $621 million as of June 30, 2015 and December 31, 2014 , respectively. The fair value of our Senior Notes due 2021 (as defined below) was $646 million and $653 million as of June 30, 2015 and December 31, 2014 , respectively. (b) The unamortized discount is recognized as a reduction in the carrying value of the Senior Notes in the Condensed Consolidated Balance Sheets and is being amortized to interest expense in our Condensed Consolidated Income Statements over the expected remaining terms of the Senior Notes. Senior Notes On September 20, 2011, we issued 3.550% Senior Notes of $600 million aggregate principal amount due September 2016 (the "Senior Notes due 2016") and 4.875% Senior Notes of $600 million aggregate principal amount due October 2021 (the "Senior Notes due 2021" and together with the Senior Notes due 2016 the "Senior Notes"). The Senior Notes include covenants which restrict our ability, subject to exceptions, to incur debt secured by liens and engage in sale and leaseback transactions, as well as provide for customary events of default (subject, in certain cases, to receipt of notice of default and/or customary grace and cure periods). We may redeem the Senior Notes, as applicable, in whole or in part, at any time at a redemption price equal to the principal amount of the Senior Notes to be redeemed, plus a make-whole premium. If a change of control triggering event (as defined in the Senior Notes indenture) occurs, we will be required to make an offer to purchase the Senior Notes at a price equal to 101% of their principal amount plus accrued and unpaid interest to the date of repurchase. As of June 30, 2015 , we were in compliance with all covenants. Interest on the Senior Notes due 2016 is payable on March 20 and September 20 of each year. Interest on the Senior Notes due 2021 is payable on April 1 and October 1 of each year. Five-Year Revolving Credit Facility Effective March 27, 2015, Xylem entered into a Five-Year Revolving Credit Facility (the "Credit Facility") with Citibank, N.A., as administrative agent, and a syndicate of lenders. The Credit Facility provides for an aggregate principal amount of up to $600 million of: (i) revolving extensions of credit (the "revolving loans") outstanding at any time and (ii) the issuance of letters of credit in a face amount not in excess of $100 million outstanding at any time. The Credit Facility provides for increases of up to $200 million for a possible maximum total of $800 million in aggregate principal amount at our request and with the consent of the institutions providing such increased commitments. At our election, the interest rate per annum applicable to the revolving loans will be based on either (i) a Eurodollar rate determined by reference to LIBOR, adjusted for statutory reserve requirements, plus an applicable margin or (ii) a fluctuating rate of interest determined by reference to the greatest of: (a) the prime rate of Citibank, N.A., (b) the U.S. Federal funds effective rate plus half of 1% or (c) the Eurodollar rate determined by reference to LIBOR, adjusted for statutory reserve requirements, in each case, plus an applicable margin. In accordance with the terms, we may not exceed a maximum leverage ratio of 3.50 to 1.00 (based on a ratio of total debt to earnings before interest, taxes, depreciation and amortization) throughout the term. The Credit Facility also contains limitations on, among other things, incurring secured debt, granting liens, entering into sale and leaseback transactions, mergers, consolidations, liquidations, dissolutions and sales of assets. In addition, the Credit Facility contains other terms and conditions such as customary representations and warranties, additional covenants and customary events of default. As of June 30, 2015 , we were in compliance with all covenants . As of June 30, 2015 , the Credit Facility was undrawn. Research and Development Facility Agreement On December 4, 2013, the Company amended and restated its Risk Sharing Finance Facility Agreement (the "R&D Facility Agreement") with The European Investment Bank (the "EIB") to add an additional borrower under the facility. The facility provides an aggregate principal amount of up to €120 million (approximately $134 million ) to finance research projects and infrastructure development in the European Union. The Company's wholly owned subsidiaries in Luxembourg, Xylem Holdings S.á r.l. and Xylem International S.á r.l., are the borrowers under the R&D Facility Agreement. The obligations of the borrowers under the R&D Facility Agreement are guaranteed by the Company under an Amended and Restated Deed of Guarantee, dated as of December 4, 2013, in favor of the EIB. The funds are available to finance research and development projects during the period from 2013 through 2016 at the Company's R&D facilities in Sweden, Germany, Italy, the United Kingdom, Austria, Norway and Hungary. Under the R&D Facility Agreement, the borrower can draw loans on or before December 14, 2015 with a maturity of no longer than 12 years. The R&D Facility Agreement provides for Fixed Rate loans and Floating Rate loans. The interest rate per annum applicable to Fixed Rate loans is at a fixed percentage rate per annum specified by the EIB which includes the applicable margin. The interest rate per annum applicable to Floating Rate loans is at the rate determined by reference to EURIBOR for loans drawn in Euros and LIBOR for loans drawn in Pounds Sterling or U.S. Dollars, plus an applicable spread specified by the EIB which includes the applicable margin. The applicable margin for both Fixed Rate loans and Floating Rate loans is determined by reference to the credit rating of the Company. In accordance with the terms of the R&D Facility Agreement, we may not exceed a maximum leverage ratio of 3.50 to 1.00 (based on a ratio of total debt to earnings before interest, taxes, depreciation and amortization) throughout the term. The R&D Facility Agreement also contains limitations on, among other things, incurring debt, granting liens, and entering into sale and leaseback transactions. In addition, the R&D Facility Agreement contains other terms and conditions, such as customary representations and warranties, additional covenants and customary events of default. As of June 30, 2015 , we were in compliance with all covenants. As of June 30, 2015 , $77 million was outstanding under the R&D Facility Agreement. Although the borrowing term for this arrangement is for five years, we have classified it as short-term debt on our Condensed Consolidated Balance Sheet since we intend to repay this obligation in less than one year.

Postretirement Benefit Plans

Postretirement Benefit Plans	6 Months Ended
	Jun. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Postretirement Benefit Plans	Postretirement Benefit Plans The following table provides the components of net periodic benefit cost for our defined benefit pension plans, disaggregated by domestic and international plans. Three Months Ended Six Months Ended June 30, June 30, (in millions) 2015 2014 2015 2014 Domestic defined benefit pension plans: Service cost $ 1 $ 1 $ 1 $ 1 Interest cost 1 1 2 2 Expected return on plan assets (1 ) (1 ) (2 ) (2 ) Amortization of net actuarial loss — — 1 1 Net periodic benefit cost $ 1 $ 1 $ 2 $ 2 International defined benefit pension plans: Service cost $ 3 $ 4 $ 6 $ 8 Interest cost 6 7 12 14 Expected return on plan assets (9 ) (9 ) (17 ) (17 ) Amortization of net actuarial loss 4 2 7 4 Net periodic benefit cost $ 4 $ 4 $ 8 $ 9 Total net periodic benefit cost $ 5 $ 5 $ 10 $ 11 The total net periodic benefit cost for other postretirement employee benefit plans was $1 million and $2 million including amounts recognized in other comprehensive income of less than $1 million for both the three and six months ended June 30, 2015 , respectively. The total net periodic benefit cost for other postretirement employee benefit plans was $2 million and $3 million including amounts recognized in other comprehensive income of $1 million for both the three and six months ended June 30, 2014 . We contributed $13 million and $22 million to our defined benefit plans during the six months ended June 30, 2015 and 2014 , respectively. Additional contributions ranging between approximately $11 million and $21 million are expected during the remainder of 2015 .

Share-Based Compensation Plans

Share-Based Compensation Plans	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation Plans	Share-Based Compensation Plans Share-based compensation expense was $4 million and $8 million during the three and six months ended June 30, 2015 , respectively, and $5 million and $9 million during the three and six months ended June 30, 2014 . The unrecognized compensation expense related to our stock options, restricted stock and performance based shares was $8 million , $26 million and $5 million , respectively, at June 30, 2015 and is expected to be recognized over a weighted average period of 2.2 , 2.2 and 2.2 years, respectively. The amount of cash received from the exercise of stock options was $9 million and $17 million for the six months ended June 30, 2015 and 2014 , respectively. Stock Option Grants The following is a summary of the changes in outstanding stock options for the six months ended June 30, 2015 : (shares in thousands) Shares Weighted Average Exercise Price / Share Weighted Average Remaining Contractual Term (Years) Outstanding at January 1, 2015 2,989 $ 28.60 6.5 Granted 677 36.00 10.0 Exercised (348 ) 27.26 5.2 Forfeited (49 ) 33.14 8.5 Outstanding at June 30, 2015 3,269 $ 30.22 6.9 Options exercisable at June 30, 2015 2,121 $ 27.38 5.8 Vested and expected to vest as of June 30, 2015 3,107 $ 29.96 6.8 The aggregate intrinsic value of the outstanding, exercisable, and vested and expected to vest stock options as of June 30, 2015 was $22 million , $20 million and $22 million , respectively. The total intrinsic value of options exercised (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) during the six months ended June 30, 2015 was $3 million . Stock Option Fair Value The fair value of each option grant was estimated on the date of grant using the binomial lattice pricing model which incorporates multiple and variable assumptions over time, including assumptions such as employee exercise patterns, stock price volatility and changes in dividends. The following are weighted-average assumptions for 2015 grants: Dividend yield 1.57 % Volatility 27.77 % Risk-free interest rate 1.64 % Expected term (in years) 5.59 Weighted-average fair value / share $ 8.53 Expected volatility is calculated based on a weighted analysis of historic and implied volatility measures for a set of peer companies and Xylem. We use historical data to estimate option exercise and employee termination behavior within the valuation model. Employee groups and option characteristics are considered separately for valuation purposes. The expected term represents an estimate of the period of time options are expected to remain outstanding. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of option grant. Restricted Stock Grants The following is a summary of restricted stock activity for the six months ended June 30, 2015 : (shares in thousands) Shares Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2015 1,171 $ 31.80 Granted 388 36.04 Vested (338 ) 27.75 Forfeited (51 ) 32.04 Outstanding at June 30, 2015 1,170 $ 34.40 Performance-Based Share Grants The following is a summary of performance-based share grants for the six months ended June 30, 2015 : (shares in thousands) Shares Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2015 124 $ 33.95 Granted 98 36.02 Vested — — Forfeited (10 ) 32.17 Outstanding at June 30, 2015 212 $ 34.86

Capital Stock Capital Stock

Capital Stock Capital Stock	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Capital Stock	Capital Stock On August 20, 2013, the Board of Directors authorized the repurchase of up to $250 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 June 30, 2015 . For the six months ended June 30, 2015 , we repurchased 1.4 million shares for $50 million . There are up to $20 million in shares that may still be purchased under this plan as of June 30, 2015 . For the three and six months ended June 30, 2014 , we repurchased 1.3 million and 2.6 million shares for $50 million and $100 million , respectively, under this program. On August 18, 2012, the Board of Directors authorized the repurchase of up to 2.0 million shares of common stock with no expiration date. The program's objective is to offset dilution associated with various Xylem employee stock plans by acquiring shares in the open market from time to time. There were no shares repurchased under this program during the three and six months ended June 30, 2015 and 2014 . There are up to 1.0 million shares that may still be purchased under this plan as of June 30, 2015 . Aside from the aforementioned repurchase programs, we repurchased less than 0.1 million and 0.1 million shares for less than $1 million and $3 million during the three and six months ended June 30, 2015 , respectively, in relation to settlement of employee tax withholding obligations due as a result of the vesting of restricted stock. Likewise, during the three and six months ended June 30, 2014 , we repurchased less than 0.1 million shares in both periods for less than $1 million and $1 million , respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) The following table provides the components of accumulated other comprehensive income (loss) for the three months ended June 30, 2015 : (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at April 1, 2015 $ 8 $ (228 ) $ (13 ) $ (233 ) Foreign currency translation adjustment 26 — — 26 Amortization of net actuarial loss on postretirement benefit plans into: Cost of revenue — 1 — 1 Selling, general and administrative expenses — 2 — 2 Other non-operating expense, net — 1 — 1 Income tax impact on amortization of postretirement benefit plan items — (1 ) — (1 ) Reclassification of unrealized loss on foreign exchange agreements into revenue — — 7 7 Income tax benefit on reclassification of unrealized loss on foreign exchange agreements into revenue — — (1 ) (1 ) Balance at June 30, 2015 $ 34 $ (225 ) $ (7 ) $ (198 ) The following table provides the components of accumulated other comprehensive income (loss) for the six months ended June 30, 2015 : (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at January 1, 2015 $ 145 $ (231 ) $ (13 ) $ (99 ) Foreign currency translation adjustment (103 ) — — (103 ) Foreign currency gain reclassified into gain on sale of businesses (8 ) — — (8 ) Amortization of net actuarial loss on postretirement benefit plans into: Cost of revenue — 2 — 2 Selling, general and administrative expenses — 5 — 5 Other non-operating expense, net — 1 — 1 Income tax impact on amortization of postretirement benefit plan items — (2 ) — (2 ) Unrealized loss on foreign exchange agreements — — (5 ) (5 ) Reclassification of unrealized loss on foreign exchange agreements into revenue — — 11 11 Reclassification of unrealized loss on foreign exchange agreements into cost of revenue — — 1 1 Income tax benefit on reclassification of unrealized loss on foreign exchange agreements into revenue — — (1 ) (1 ) Balance at June 30, 2015 $ 34 $ (225 ) $ (7 ) $ (198 )

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies General From time to time, we are involved in legal proceedings that are incidental to the operation of our businesses, including acquisitions and divestitures, intellectual property matters, product liability and personal injury claims, employment and pension matters, government and commercial contract disputes. On December 17, 2014, the Korea Fair Trade Commission (“KFTC”) issued a written decision regarding an investigation into bid-rigging allegations against Xylem Water Solutions South Korea Co., Ltd. (“Xylem South Korea”), a subsidiary of Xylem Inc. The KFTC found that certain employees of Xylem South Korea had participated in activities that violated Korea’s antitrust laws. Xylem South Korea was assessed a fine of approximately $1.6 million , and following criminal prosecution a minimal criminal penalty was imposed. In January 2015, Xylem South Korea paid the fine and filed an appeal of the KFTC’s decision with the Seoul High Court. In connection with the KFTC matter, the Company commenced an internal investigation relating to the allegations against Xylem South Korea. In late 2014, the Company broadened this internal investigation to assess related allegations made by certain employees of Xylem South Korea during the investigation into the KFTC matter. The broadened investigation includes a review of compliance by Xylem South Korea and its employees with the requirements of the Foreign Corrupt Practices Act. The Company engaged independent outside counsel to assist with its investigation and an independent professional services firm to provide forensic accounting assistance. In late January 2015, the Company voluntarily contacted the SEC and the Department of Justice ("DOJ") to advise both agencies of this internal investigation. The Company is fully cooperating with any government investigation. Xylem South Korea’s revenue is less than one percent of the Company’s total revenue. Although the Company currently cannot reasonably estimate the potential liability, if any, related to the investigation, we currently believe that these matters will not have a material adverse effect on the Company’s business, financial condition or results of operations. From time to time, claims may be asserted against Xylem alleging injury caused by any of our products resulting from asbestos exposure. We believe there are numerous legal defenses available for such claims and would defend ourselves vigorously. Pursuant to the Distribution Agreement ("Distribution Agreement") dated October 25, 2011 among ITT Corporation ("ITT" or "former parent"), Exelis Inc. and Xylem, the former parent has an obligation to indemnify, defend and hold Xylem harmless for asbestos product liability matters, including settlements, judgments, and legal defense costs associated with all pending and future claims that may arise from past sales of the former parent’s legacy products. We believe the former parent remains a substantial entity with sufficient financial resources to honor its obligations to us. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information, including our assessment of the merits of the particular claims, we do not expect that any asserted or unasserted legal claims or proceedings, individually or in aggregate, will have a material adverse effect on our results of operations or financial condition. We have estimated and accrued $6 million and $9 million for these general legal matters as of June 30, 2015 and December 31, 2014 , respectively. Indemnifications As part of our 2011 spin-off from our former parent, ITT, Exelis Inc. and Xylem will indemnify, defend and hold harmless each of the other parties with respect to such parties’ assumed or retained liabilities under the Distribution Agreement and breaches of the Distribution Agreement or related spin agreements. The former parent’s indemnification obligations include asserted and unasserted asbestos and silica liability claims that relate to the presence or alleged presence of asbestos or silica in products manufactured, repaired or sold prior to October 31, 2011, the Distribution Date, subject to limited exceptions with respect to certain employee claims, or in the structure or material of any building or facility, subject to exceptions with respect to employee claims relating to Xylem buildings or facilities. The indemnification associated with pending and future asbestos claims does not expire. Xylem has not recorded a liability for material matters for which we expect to be indemnified by the former parent or Exelis Inc. through the Distribution Agreement and we are not aware of any claims or other circumstances that would give rise to material payments from us under such indemnifications. On May 29, 2015, Harris Inc. acquired Exelis. As the parent of Exelis, Harris Inc. is responsible for Exelis’s indemnification obligations under the Distribution Agreement. Environmental In the ordinary course of business, we are subject to federal, state, local, and foreign environmental laws and regulations. We are responsible, or are alleged to be responsible, for ongoing environmental investigation and remediation of sites in various countries. These sites are in various stages of investigation and/or remediation and in many of these proceedings our liability is considered de minimis. We have received notification from the U.S. Environmental Protection Agency, and from similar state and foreign environmental agencies, that a number of sites formerly or currently owned and/or operated by Xylem or for which we are responsible under the Distribution Agreement, and other properties or water supplies that may be or have been impacted from those operations, contain disposed or recycled materials or wastes and require environmental investigation and/or remediation. These sites include instances where we have been identified as a potentially responsible party under federal and state environmental laws and regulations. Accruals for environmental matters are recorded on a site-by-site basis when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. Our accrued liabilities for these environmental matters represent the best estimates related to the investigation and remediation of environmental media such as water, soil, soil vapor, air and structures, as well as related legal fees. These estimates, and related accruals, are reviewed quarterly and updated for progress of investigation and remediation efforts and changes in facts and legal circumstances. Liabilities for these environmental expenditures are recorded on an undiscounted basis. We have estimated and accrued $5 million as of both June 30, 2015 and December 31, 2014 for environmental matters. It is difficult to estimate the final costs of investigation and remediation due to various factors, including incomplete information regarding particular sites and other potentially responsible parties, uncertainty regarding the extent of investigation or remediation and our share, if any, of liability for such conditions, the selection of alternative remedial approaches, and changes in environmental standards and regulatory requirements. We believe the total amount accrued is reasonable based on existing facts and circumstances. Warranties We warrant numerous products, the terms of which vary widely. In general, we warrant products against defect and specific non-performance. The table below provides the changes in our product warranty accrual. (in millions) 2015 2014 Warranty accrual – January 1 $ 31 $ 37 Net changes for product warranties in the period 14 12 Settlement of warranty claims (13 ) (15 ) Foreign currency and other (1 ) — Warranty accrual - June 30 $ 31 $ 34

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Segment Information	Segment Information Our business has two reportable segments: Water Infrastructure and Applied Water. The Water Infrastructure segment, focuses on the transportation, treatment and testing of water, offering a range of products including water and wastewater pumps, treatment and testing equipment, and controls and systems. The Applied Water segment encompasses the uses of water and focuses on the residential, commercial, industrial and agricultural markets offering a wide range of products, including pumps, valves and heat exchangers. Additionally, we have Regional selling locations which consist primarily of selling and marketing organizations and related support that offer products and services across both of our reportable segments. Corporate and other consists of corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs, as well as charges related to certain matters, such as environmental matters that are managed at a corporate level and are not included in the business segments in evaluating performance or allocating resources. The accounting policies of each segment are the same as those described in the summary of significant accounting policies (see Note 1 in the 2014 Annual Report). The following tables contain financial information for each reportable segment. Three Months Ended Six Months Ended June 30, June 30, (in millions) 2015 2014 2015 2014 Revenue: Water Infrastructure $ 551 $ 616 $ 1,051 $ 1,168 Applied Water 369 389 706 743 Total $ 920 $ 1,005 $ 1,757 $ 1,911 Operating Income: Water Infrastructure $ 65 $ 76 $ 112 $ 122 Applied Water 51 53 97 94 Corporate and other (12 ) (13 ) (22 ) (24 ) Total $ 104 $ 116 $ 187 $ 192 Depreciation and Amortization: Water Infrastructure $ 23 $ 25 $ 48 $ 50 Applied Water 6 7 12 13 Regional selling locations (a) 3 3 5 6 Corporate and other 2 1 4 3 Total $ 34 $ 36 $ 69 $ 72 Capital Expenditures: Water Infrastructure $ 12 $ 14 $ 37 $ 27 Applied Water 3 5 10 10 Regional selling locations (b) 4 2 6 4 Corporate and other 1 2 4 7 Total $ 20 $ 23 $ 57 $ 48 (a) Depreciation and amortization expense incurred by the Regional selling locations was included in an overall allocation of Regional selling location costs to the segments; however, a certain portion of that expense was not specifically identified to a segment. That expense is captured in this Regional selling location line. (b) Represents capital expenditures incurred by the Regional selling locations not allocated to the segments. The following table contains the total assets for each reportable segment. Total Assets (in millions) June 30, December 31, Water Infrastructure $ 2,073 $ 2,128 Applied Water 1,113 1,114 Regional selling location (a) 929 961 Corporate and other (b) 604 657 Total $ 4,719 $ 4,860 (a) The Regional selling locations have assets that consist primarily of cash, accounts receivable and inventory which are not allocated to the segments. (b) Corporate and other consists of items pertaining to our corporate headquarters function, which principally consist of cash, deferred tax assets, pension assets and certain property, plant and equipment.

Background and Basis of Prese25

Background and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The interim condensed consolidated financial statements reflect our financial position and results of operations in conformity with accounting principles generally accepted in the United States of America ("GAAP"). All transactions between our businesses have been eliminated. The unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and, in the opinion of management, reflect all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation of the financial position and results of operations for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such SEC rules. We believe that the disclosures made are adequate to make the information presented not misleading. We consistently applied the accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2014 ("2014 Annual Report") in preparing these unaudited condensed consolidated financial statements, with the exception of accounting standard updates described in Note 2. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our 2014 Annual Report. Certain prior year amounts have been reclassified to conform to the current year presentation. In 2014, we began implementing an organizational redesign to integrate our commercial teams within geographical regions. While this organizational redesign did not change our reportable segments, it had implications on how we manage our business. These changes and the related measurement system were effective in the fourth quarter 2014 and as a result, we commenced reporting our financial performance at such time based on the new organizational design. The 2014 segment information presented herein has been recast from amounts previously reported to reflect these changes. The recast financial information does not represent a restatement of previously issued financial statements and the changes had no impact on our historical consolidated financial position or results of operations. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, postretirement obligations and assets, revenue recognition, income tax contingency accruals and valuation allowances, goodwill impairment testing and contingent liabilities. Actual results could differ from these estimates. Additionally, our interim condensed consolidated financial statements may not be indicative of our future performance. Our quarterly financial periods end on the Saturday closest to the last day of the calendar quarter, except for the fourth quarter which ends on December 31. For ease of presentation, the condensed consolidated financial statements included herein are described as ending on the last day of the calendar quarter.

Restructuring Charges (Tables)

Restructuring Charges (Tables)	6 Months Ended
	Jun. 30, 2015
Restructuring and Related Activities [Abstract]
Components of restructuring and asset impairment charges	The following table presents the components of restructuring expense for the three and six months ended June 30, 2015 and 2014 . Three Months Ended Six Months Ended June 30, June 30, (in millions) 2015 2014 2015 2014 By component: Severance and other charges $ 1 $ 3 $ 5 $ 18 Reversal of restructuring accruals — — (1 ) — Total restructuring charges $ 1 $ 3 $ 4 $ 18 By segment: Water Infrastructure $ 1 $ 2 $ 4 $ 12 Applied Water — 1 — 6
Restructuring Accruals	The following table displays a rollforward of the restructuring accruals, presented on our Condensed Consolidated Balance Sheets within accrued and other current liabilities, for the six months ended June 30, 2015 and 2014 . (in millions) 2015 2014 Restructuring accruals - January 1 $ 12 $ 13 Restructuring charges 4 18 Cash payments (9 ) (17 ) Foreign currency and other (1 ) — Restructuring accruals - June 30 $ 6 $ 14 By segment: Water Infrastructure $ 3 $ 7 Applied Water — 4 Regional selling locations (a) 3 3 (a) Regional selling locations consist primarily of selling and marketing organizations that incurred restructuring expense which was allocated to the segments. The liabilities associated with restructuring expense were not allocated to the segments.
Planned Employee Reductions Associated with Restructuring	The following is a rollforward for the six months ended June 30, 2015 and 2014 of employee position eliminations associated with restructuring activities. 2015 2014 Planned reductions - January 1 133 51 Additional planned reductions 80 233 Actual reductions (106 ) (172 ) Planned reductions - June 30 107 112

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Basic and diluted net earnings per share	The following is a reconciliation of the shares used in calculating basic and diluted net earnings per share. Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net income (in millions) $ 74 $ 86 $ 138 $ 135 Shares (in thousands): Weighted average common shares outstanding 181,422 183,328 181,735 183,917 Add: Participating securities (a) 52 49 49 45 Weighted average common shares outstanding — Basic 181,474 183,377 181,784 183,962 Plus incremental shares from assumed conversions: (b) Dilutive effect of stock options 513 659 522 659 Dilutive effect of restricted stock 326 483 382 523 Weighted average common shares outstanding — Diluted 182,313 184,519 182,688 185,144 Basic earnings per share $ 0.41 $ 0.47 $ 0.76 $ 0.74 Diluted earnings per share $ 0.41 $ 0.47 $ 0.76 $ 0.73 (a) Restricted stock awards containing rights to non-forfeitable dividends that participate in undistributed earnings with common shareholders are considered participating securities for purposes of computing earnings per share. (b) Incremental shares from stock options, restricted stock and performance share units are computed by the treasury stock method. The weighted average shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or were otherwise excluded under the treasury stock method. The treasury stock method calculates dilution assuming the exercise of all in-the-money options and vesting of restricted stock and performance share awards, reduced by the repurchase of shares with the proceeds from the assumed exercises, unrecognized compensation expense for outstanding awards and the estimated tax benefit of the assumed exercises. Performance share units will be included in the treasury stock calculation of diluted earnings per share upon achievement of underlying performance conditions. See Note 14 , "Share-Based Compensation Plans" for further detail on the performance share units. Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2015 2014 2015 2014 Stock options 2,800 2,851 2,717 2,798 Restricted stock 633 614 612 531 Performance shares 213 136 186 102

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2015
Inventory Disclosure [Abstract]
Inventories	(in millions) June 30, December 31, Finished goods $ 213 $ 194 Work in process 45 42 Raw materials 240 250 Total inventories $ 498 $ 486

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	6 Months Ended
	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	(in millions) June 30, December 31, Land, buildings and improvements $ 247 $ 252 Machinery and equipment 646 655 Equipment held for lease or rental 211 207 Furniture and fixtures 85 87 Construction work in progress 36 41 Other 22 23 Total property, plant and equipment, gross 1,247 1,265 Less accumulated depreciation 816 804 Total property, plant and equipment, net $ 431 $ 461

Goodwill and Other Intangible30

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the carrying value of goodwill by operating segment	Changes in the carrying value of goodwill by reportable segment for the six months ended June 30, 2015 are as follows: (in millions) Water Infrastructure Applied Water Total Balance as of January 1, 2015 $ 1,098 $ 537 $ 1,635 Activity in 2015 Foreign currency and other (29 ) (14 ) (43 ) Balance as of June 30, 2015 $ 1,069 $ 523 $ 1,592
Other Intangible Assets	Information regarding our other intangible assets is as follows: June 30, 2015 December 31, 2014 (in millions) Carrying Amount Accumulated Amortization Net Intangibles Carrying Amount Accumulated Amortization Net Intangibles Customer and distributor relationships $ 321 $ (130 ) $ 191 $ 331 $ (122 ) $ 209 Proprietary technology and patents 113 (51 ) 62 116 (49 ) 67 Trademarks 34 (18 ) 16 36 (17 ) 19 Software (a) 131 (91 ) 40 131 (92 ) 39 Other 8 (8 ) — 9 (9 ) — Indefinite-lived intangibles 133 — 133 136 — 136 $ 740 $ (298 ) $ 442 $ 759 $ (289 ) $ 470

Derivative Financial Instrume31

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Effect of derivative financial instruments	The table below presents the effect of our derivative financial instruments on the Condensed Consolidated Income Statements and Statements of Comprehensive Income. Three Months Ended Six Months Ended June 30, June 30, (in millions) 2015 2014 2015 2014 Derivatives in Cash Flow Hedges Foreign Exchange Contracts Amount of loss recognized in Other Comprehensive Income (a) $ — $ (7 ) $ (5 ) $ (8 ) Amount of loss (gain) reclassified from Other Comprehensive Income into revenue (a) 7 — 11 (1 ) Amount of (gain) loss reclassified from Other Comprehensive Income into cost of revenue (a) — (1 ) 1 — (a) Effective portion
Fair values of foreign exchange contracts	The fair values of our foreign exchange contracts currently included in our hedging program were as follows: (in millions) June 30, December 31, Derivatives designated as hedging instruments Assets Other current assets $ 1 $ 1 Liabilities Other current liabilities (6 ) (13 ) Total fair value $ (5 ) $ (12 )

Accrued and Other Current Lia32

Accrued and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2015
Payables and Accruals [Abstract]
Accrued and Other Current Liabilities	The components of total accrued and other current liabilities are as follows: (in millions) June 30, December 31, Compensation and other employee benefits $ 159 $ 186 Customer-related liabilities 66 66 Accrued warranty costs 30 31 Accrued taxes 70 77 Other accrued liabilities 116 121 Total accrued and other current liabilities $ 441 $ 481

Credit Facilities and Long-Te33

Credit Facilities and Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Schedule of Credit Facilities and Long-Term Debt	(in millions) June 30, December 31, Short-term borrowings and current maturities of long-term debt $ 81 $ 89 Long-term debt 3.550% Senior Notes due 2016 (a) $ 600 $ 600 4.875% Senior Notes due 2021 (a) 600 600 Debt issuance costs (4 ) (4 ) Unamortized discount (b) — (1 ) Long-term debt $ 1,196 $ 1,195 Total debt $ 1,277 $ 1,284 (a) The fair value of our Senior Notes (as defined below) was determined using quoted prices in active markets for identical securities, which are considered Level 1 inputs. The fair value of our Senior Notes due 2016 (as defined below) was $616 million and $621 million as of June 30, 2015 and December 31, 2014 , respectively. The fair value of our Senior Notes due 2021 (as defined below) was $646 million and $653 million as of June 30, 2015 and December 31, 2014 , respectively. (b) The unamortized discount is recognized as a reduction in the carrying value of the Senior Notes in the Condensed Consolidated Balance Sheets and is being amortized to interest expense in our Condensed Consolidated Income Statements over the expected remaining terms of the Senior Notes.

Postretirement Benefit Plans (T

Postretirement Benefit Plans (Tables)	6 Months Ended
	Jun. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Components of net periodic benefit cost and other amounts recognized in other comprehensive income	The following table provides the components of net periodic benefit cost for our defined benefit pension plans, disaggregated by domestic and international plans. Three Months Ended Six Months Ended June 30, June 30, (in millions) 2015 2014 2015 2014 Domestic defined benefit pension plans: Service cost $ 1 $ 1 $ 1 $ 1 Interest cost 1 1 2 2 Expected return on plan assets (1 ) (1 ) (2 ) (2 ) Amortization of net actuarial loss — — 1 1 Net periodic benefit cost $ 1 $ 1 $ 2 $ 2 International defined benefit pension plans: Service cost $ 3 $ 4 $ 6 $ 8 Interest cost 6 7 12 14 Expected return on plan assets (9 ) (9 ) (17 ) (17 ) Amortization of net actuarial loss 4 2 7 4 Net periodic benefit cost $ 4 $ 4 $ 8 $ 9 Total net periodic benefit cost $ 5 $ 5 $ 10 $ 11

Share-Based Compensation Plans

Share-Based Compensation Plans (Tables)	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of restricted stock activity	The following is a summary of restricted stock activity for the six months ended June 30, 2015 : (shares in thousands) Shares Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2015 1,171 $ 31.80 Granted 388 36.04 Vested (338 ) 27.75 Forfeited (51 ) 32.04 Outstanding at June 30, 2015 1,170 $ 34.40
Summary of performance based share grants	The following is a summary of performance-based share grants for the six months ended June 30, 2015 : (shares in thousands) Shares Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2015 124 $ 33.95 Granted 98 36.02 Vested — — Forfeited (10 ) 32.17 Outstanding at June 30, 2015 212 $ 34.86
Summary of the changes in outstanding stock options	The following is a summary of the changes in outstanding stock options for the six months ended June 30, 2015 : (shares in thousands) Shares Weighted Average Exercise Price / Share Weighted Average Remaining Contractual Term (Years) Outstanding at January 1, 2015 2,989 $ 28.60 6.5 Granted 677 36.00 10.0 Exercised (348 ) 27.26 5.2 Forfeited (49 ) 33.14 8.5 Outstanding at June 30, 2015 3,269 $ 30.22 6.9 Options exercisable at June 30, 2015 2,121 $ 27.38 5.8 Vested and expected to vest as of June 30, 2015 3,107 $ 29.96 6.8
Weighted-average assumptions for 2015 grants	The following are weighted-average assumptions for 2015 grants: Dividend yield 1.57 % Volatility 27.77 % Risk-free interest rate 1.64 % Expected term (in years) 5.59 Weighted-average fair value / share $ 8.53

Accumulated Other Comprehensi36

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table provides the components of accumulated other comprehensive income (loss) for the six months ended June 30, 2015 : (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at January 1, 2015 $ 145 $ (231 ) $ (13 ) $ (99 ) Foreign currency translation adjustment (103 ) — — (103 ) Foreign currency gain reclassified into gain on sale of businesses (8 ) — — (8 ) Amortization of net actuarial loss on postretirement benefit plans into: Cost of revenue — 2 — 2 Selling, general and administrative expenses — 5 — 5 Other non-operating expense, net — 1 — 1 Income tax impact on amortization of postretirement benefit plan items — (2 ) — (2 ) Unrealized loss on foreign exchange agreements — — (5 ) (5 ) Reclassification of unrealized loss on foreign exchange agreements into revenue — — 11 11 Reclassification of unrealized loss on foreign exchange agreements into cost of revenue — — 1 1 Income tax benefit on reclassification of unrealized loss on foreign exchange agreements into revenue — — (1 ) (1 ) Balance at June 30, 2015 $ 34 $ (225 ) $ (7 ) $ (198 ) The following table provides the components of accumulated other comprehensive income (loss) for the three months ended June 30, 2015 : (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at April 1, 2015 $ 8 $ (228 ) $ (13 ) $ (233 ) Foreign currency translation adjustment 26 — — 26 Amortization of net actuarial loss on postretirement benefit plans into: Cost of revenue — 1 — 1 Selling, general and administrative expenses — 2 — 2 Other non-operating expense, net — 1 — 1 Income tax impact on amortization of postretirement benefit plan items — (1 ) — (1 ) Reclassification of unrealized loss on foreign exchange agreements into revenue — — 7 7 Income tax benefit on reclassification of unrealized loss on foreign exchange agreements into revenue — — (1 ) (1 ) Balance at June 30, 2015 $ 34 $ (225 ) $ (7 ) $ (198 )

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Changes in product warranty accrual	We warrant numerous products, the terms of which vary widely. In general, we warrant products against defect and specific non-performance. The table below provides the changes in our product warranty accrual. (in millions) 2015 2014 Warranty accrual – January 1 $ 31 $ 37 Net changes for product warranties in the period 14 12 Settlement of warranty claims (13 ) (15 ) Foreign currency and other (1 ) — Warranty accrual - June 30 $ 31 $ 34

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Financial information for each reportable segment	The accounting policies of each segment are the same as those described in the summary of significant accounting policies (see Note 1 in the 2014 Annual Report). The following tables contain financial information for each reportable segment. Three Months Ended Six Months Ended June 30, June 30, (in millions) 2015 2014 2015 2014 Revenue: Water Infrastructure $ 551 $ 616 $ 1,051 $ 1,168 Applied Water 369 389 706 743 Total $ 920 $ 1,005 $ 1,757 $ 1,911 Operating Income: Water Infrastructure $ 65 $ 76 $ 112 $ 122 Applied Water 51 53 97 94 Corporate and other (12 ) (13 ) (22 ) (24 ) Total $ 104 $ 116 $ 187 $ 192 Depreciation and Amortization: Water Infrastructure $ 23 $ 25 $ 48 $ 50 Applied Water 6 7 12 13 Regional selling locations (a) 3 3 5 6 Corporate and other 2 1 4 3 Total $ 34 $ 36 $ 69 $ 72 Capital Expenditures: Water Infrastructure $ 12 $ 14 $ 37 $ 27 Applied Water 3 5 10 10 Regional selling locations (b) 4 2 6 4 Corporate and other 1 2 4 7 Total $ 20 $ 23 $ 57 $ 48 (a) Depreciation and amortization expense incurred by the Regional selling locations was included in an overall allocation of Regional selling location costs to the segments; however, a certain portion of that expense was not specifically identified to a segment. That expense is captured in this Regional selling location line. (b) Represents capital expenditures incurred by the Regional selling locations not allocated to the segments.
Total assets for each reportable segment	The following table contains the total assets for each reportable segment. Total Assets (in millions) June 30, December 31, Water Infrastructure $ 2,073 $ 2,128 Applied Water 1,113 1,114 Regional selling location (a) 929 961 Corporate and other (b) 604 657 Total $ 4,719 $ 4,860 (a) The Regional selling locations have assets that consist primarily of cash, accounts receivable and inventory which are not allocated to the segments. (b) Corporate and other consists of items pertaining to our corporate headquarters function, which principally consist of cash, deferred tax assets, pension assets and certain property, plant and equipment.

Background and Basis of Prese39

Background and Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2015Segment
Background and Basis of Presentation (Textual) [Abstract]
Number of operating segment	2

Recently Issued Accounting Pr40

Recently Issued Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Debt issuance cost	$ (4)	$ (4)

Divestitures (Details)

Divestitures (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Business Combinations [Abstract]
Proceeds from sale of businesses			$ 1	$ 0
Gain from sale of businesses	$ 0	$ 0	$ 9	$ 0

Restructuring Charges (Restruct

Restructuring Charges (Restructuring Charges) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Restructuring Cost and Impairment Charge
Severance and other charges	$ 1	$ 3	$ 5	$ 18
Reversal of restructuring accruals	0	0	(1)	0
Restructuring charges	1	3	4	18
Water Infrastructure
Restructuring Cost and Impairment Charge
Restructuring charges	1	2	4	12
Applied Water
Restructuring Cost and Impairment Charge
Restructuring charges	$ 0	$ 1	$ 0	$ 6

Restructuring Charges (Accrual

Restructuring Charges (Accrual Rollfoward) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Restructuring Reserve [Roll Forward]
Restructuring accruals - January 1			$ 12	$ 13
Restructuring charges	$ 1	$ 3	4	18
Cash payments			(9)	(17)
Foreign currency and other			(1)	0
Restructuring accruals - June 30	6	14	6	14
Water Infrastructure
Restructuring Reserve [Roll Forward]
Restructuring charges	1	2	4	12
Restructuring accruals - June 30	3	7	3	7
Applied Water
Restructuring Reserve [Roll Forward]
Restructuring charges	0	1	0	6
Restructuring accruals - June 30	0	4	0	4
Regional Selling Location
Restructuring Reserve [Roll Forward]
Restructuring accruals - June 30	$ 3	$ 3	$ 3	$ 3

Restructuring Charges (Number o

Restructuring Charges (Number of Positions Eliminated Rollfoward) (Details) - Employees	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Restructuring and Related Cost, Number of Positions Eliminated [Roll Forward]
Planned reductions - January 1	133	51
Additional planned reductions	80	233
Actual reductions	(106)	(172)
Planned reductions - June 30	107	112

Restructuring Charges (Textuals

Restructuring Charges (Textuals) (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 1,000,000	$ 3,000,000	$ 4,000,000	$ 18,000,000
Water Infrastructure
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,000,000	2,000,000	4,000,000	12,000,000
Applied Water
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	$ 1,000,000	0	$ 6,000,000
2015 Restructuring Plan | Water Infrastructure
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost	6,000,000		6,000,000
Restructuring and Related Cost, Incurred Cost	1,000,000		3,000,000
2014 Restructuring Plan | Water Infrastructure
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost					$ 19,000,000
Restructuring and Related Cost, Incurred Cost	$ 0		$ 1,000,000		18,000,000
2014 Restructuring Plan | Applied Water
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost					6,000,000
Restructuring and Related Cost, Incurred Cost					$ 6,000,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Taxes (Textual) [Abstract]
Income tax provision	$ 17	$ 18	$ 30	$ 30
Effective tax rate	18.10%	17.20%	17.80%	17.90%
Likelihood of uncertain tax positions			greater than 50%
Tax benefit			50.00%
Unrecognized tax benefits	$ 41		$ 41
Interest accrued for unrecognized tax benefits (less than $1 million)	$ 1		$ 1

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Basic and diluted net earnings per share:
Net income		$ 74	$ 86	$ 138	$ 135
Shares
Weighted average common shares outstanding		181,422,000	183,328,000	181,735,000	183,917,000
Add: Participating securities	[1]	52,000	49,000	49,000	45,000
Weighted average common shares outstanding - Basic (in shares)		181,474,000	183,377,000	181,784,000	183,962,000
Plus incremental shares from assumed conversions:
Weighted average common shares outstanding - Diluted (in shares)		182,313,000	184,519,000	182,688,000	185,144,000
Basic earnings per share (usd per share)		$ 0.41	$ 0.47	$ 0.76	$ 0.74
Diluted earnings per share (usd per share)		$ 0.41	$ 0.47	$ 0.76	$ 0.73
Stock Options
Plus incremental shares from assumed conversions:
Dilutive effect of common shares	[2]	513,000	659,000	522,000	659,000
Restricted Stock
Plus incremental shares from assumed conversions:
Dilutive effect of common shares	[2]	326,000	483,000	382,000	523,000
[1]	Restricted stock awards containing rights to non-forfeitable dividends that participate in undistributed earnings with common shareholders are considered participating securities for purposes of computing earnings per share.
[2]	Incremental shares from stock options, restricted stock and performance share units are computed by the treasury stock method. The weighted average shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or were otherwise excluded under the treasury stock method. The treasury stock method calculates dilution assuming the exercise of all in-the-money options and vesting of restricted stock and performance share awards, reduced by the repurchase of shares with the proceeds from the assumed exercises, unrecognized compensation expense for outstanding awards and the estimated tax benefit of the assumed exercises. Performance share units will be included in the treasury stock calculation of diluted earnings per share upon achievement of underlying performance conditions. See Note 14, "Share-Based Compensation Plans" for further detail on the performance share units.

Earnings Per Share (Details 1)

Earnings Per Share (Details 1) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock Options
Incremental shares from stock options and restricted stock:
Stock Options/ Restricted Shares	2,800,000	2,851,000	2,717,000	2,798,000
Restricted Stock
Incremental shares from stock options and restricted stock:
Stock Options/ Restricted Shares	633,000	614,000	612,000	531,000
Performance Based Shares
Incremental shares from stock options and restricted stock:
Stock Options/ Restricted Shares	213,000	136,000	186,000	102,000

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Inventories
Finished goods	$ 213	$ 194
Work in process	45	42
Raw materials	240	250
Total inventories, net	$ 498	$ 486

Property, Plant and Equipment50

Property, Plant and Equipment (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment
Property, plant and equipment, gross	$ 1,247	$ 1,265
Less accumulated depreciation	816	804
Total property, plant and equipment, net	431	461
Land, buildings and improvements
Property, Plant and Equipment
Property, plant and equipment, gross	247	252
Machinery and equipment
Property, Plant and Equipment
Property, plant and equipment, gross	646	655
Equipment held for lease or rental
Property, Plant and Equipment
Property, plant and equipment, gross	211	207
Furniture and fixtures
Property, Plant and Equipment
Property, plant and equipment, gross	85	87
Construction work in progress
Property, Plant and Equipment
Property, plant and equipment, gross	36	41
Other
Property, Plant and Equipment
Property, plant and equipment, gross	$ 22	$ 23

Property, Plant and Equipment51

Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Property Plant And Equipment (Textual) [Abstract]
Depreciation expense	$ 23	$ 24	$ 47	$ 47

Goodwill and Other Intangible52

Goodwill and Other Intangible Assets (Details) $ in Millions	6 Months Ended
	Jun. 30, 2015USD ($)
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2015	$ 1,635
Foreign currency and other	(43)
Balance as of June 30, 2015	1,592
Water Infrastructure
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2015	1,098
Foreign currency and other	(29)
Balance as of June 30, 2015	1,069
Applied Water
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2015	537
Foreign currency and other	(14)
Balance as of June 30, 2015	$ 523

Goodwill and Other Intangible53

Goodwill and Other Intangible Assets (Details 1) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Finite-Lived Intangible Assets
Amortization	$ 11	$ 12	$ 22	$ 25
Goodwill and Other Intangible Assets
Accumulated Amortization	(298)		(298)		$ (289)
Intangible Assets Gross, Carrying Amount	740		740		759
Intangible Assets, Net Intangibles	442		442		470
Customer and distributor relationships
Goodwill and Other Intangible Assets
Carrying Amount	321		321		331
Accumulated Amortization	(130)		(130)		(122)
Net Intangibles	191		191		209
Proprietary technology and patents
Goodwill and Other Intangible Assets
Carrying Amount	113		113		116
Accumulated Amortization	(51)		(51)		(49)
Net Intangibles	62		62		67
Trademarks
Goodwill and Other Intangible Assets
Carrying Amount	34		34		36
Accumulated Amortization	(18)		(18)		(17)
Net Intangibles	16		16		19
Software (a)
Goodwill and Other Intangible Assets
Carrying Amount	131		131		131
Accumulated Amortization	(91)		(91)		(92)
Net Intangibles	40		40		39
Other
Goodwill and Other Intangible Assets
Carrying Amount	8		8		9
Accumulated Amortization	(8)		(8)		(9)
Net Intangibles	0		0		0
Indefinite-lived intangibles
Goodwill and Other Intangible Assets
Accumulated Amortization	0		0		0
Indefinite-lived intangibles	$ 133		$ 133		$ 136

Goodwill and Other Intangible54

Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense related to finite-lived intangible assets	$ 11	$ 12	$ 22	$ 25

Derivative Financial Instrume55

Derivative Financial Instruments (Details 1) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative Financial Instruments
Amount of loss recognized in Other Comprehensive Income (a)		$ 0	$ 7	$ 5	$ 8
Reclassification out of Accumulated Other Comprehensive Income | Foreign Exchange Contract
Derivative Financial Instruments
Amount of loss (gain) reclassified from Other Comprehensive Income into revenue (a)	[1]	7	0	11	(1)
Amount of (gain) loss reclassified from Other Comprehensive Income into cost of revenue (a)	[1]	0	(1)	1	0
Cash Flow Hedging [Member] | Foreign Exchange Contract
Derivative Financial Instruments
Amount of loss recognized in Other Comprehensive Income (a)	[1]	$ 0	$ (7)	$ (5)	$ (8)
[1]	Effective portion

Derivative Financial Instrume56

Derivative Financial Instruments (Details 2) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Derivatives, Fair Value
Total fair value	$ (5)	$ (12)
Other current assets | Derivatives designated as hedging instruments
Derivatives, Fair Value
Assets	1	1
Other current liabilities | Derivatives designated as hedging instruments
Derivatives, Fair Value
Other current liabilities	$ (6)	$ (13)

Derivative Financial Instrume57

Derivative Financial Instruments (Details Textual) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Derivative Financial Instruments (Textual) [Abstract]
Notional amount	$ 216	$ 355
Net unrealized losses on cash flow hedges	7
Foreign Exchange Contract | Sell EUR Buy SEK Forward
Derivative Financial Instruments (Textual) [Abstract]
Notional amount	82	140
Foreign Exchange Contract | Sell USD Buy EUR
Derivative Financial Instruments (Textual) [Abstract]
Notional amount	64	85
Foreign Exchange Contract | Sell GBP Buy EUR
Derivative Financial Instruments (Textual) [Abstract]
Notional amount	$ 28	$ 51

Accrued and Other Current Lia58

Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Accrued and Other Current Liabilities
Compensation and other employee benefits	$ 159	$ 186
Customer-related liabilities	66	66
Accrued warranty costs	30	31
Accrued taxes	70	77
Other accrued liabilities	116	121
Total accrued and other current liabilities	$ 441	$ 481

Credit Facilities and Long-Te59

Credit Facilities and Long-Term Debt (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014	Sep. 20, 2011
Debt Instrument
Short-term borrowings and current maturities of long-term debt	$ 81	$ 89
Credit Facilities and Long-Term Debt :
Debt Issuance Cost	(4)	(4)
Unamortized discount	0	(1)
Long-term debt	1,196	1,195
Total debt	1,277	1,284
Senior Notes Due 2016, 3.550%
Credit Facilities and Long-Term Debt :
Senior Notes Due	600	600	$ 600
Senior Notes Due 2021, 4.875%
Credit Facilities and Long-Term Debt :
Senior Notes Due	$ 600	$ 600	$ 600

Credit Facilities and Long-Te60

Credit Facilities and Long-Term Debt (Details Textual) € in Millions	Sep. 20, 2011USD ($)	Jun. 30, 2015USD ($)	Mar. 27, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 04, 2013EUR (€)
Letter of Credit
Credit Facilities and Long-Term Debt [Abstract]
Debt instrument aggregate principal amount			$ 100,000,000
Revolving Credit Facility
Credit Facilities and Long-Term Debt [Abstract]
Debt instrument aggregate principal amount			600,000,000
Permitted increases in Credit Facility borrowing base			200,000,000
Maximum permitted increases in Credit Facility borrowing base			$ 800,000,000
Interest rate per annum, effective rate		1.00%
Maximum leverage ratio		3.50
Risk Sharing Finance Facility Agreement
Credit Facilities and Long-Term Debt [Abstract]
Debt instrument aggregate principal amount		$ 134,000,000			€ 120
Maximum leverage ratio		3.50
Line of Credit Facility, Amount Outstanding		$ 77,000,000
Senior Notes
Credit Facilities and Long-Term Debt [Abstract]
Redemption price percentage	101.00%
Senior Notes Due 2016, 3.550%
Credit Facilities and Long-Term Debt [Abstract]
Fair value of senior notes due		616,000,000		$ 621,000,000
Interest on notes due	3.55%
Long-term Debt, Gross	$ 600,000,000	600,000,000		600,000,000
Senior Notes Due 2021, 4.875%
Credit Facilities and Long-Term Debt [Abstract]
Fair value of senior notes due		646,000,000		653,000,000
Interest on notes due	4.875%
Long-term Debt, Gross	$ 600,000,000	$ 600,000,000		$ 600,000,000

Postretirement Benefit Plans (D

Postretirement Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net periodic benefit cost:
Amortization of net actuarial loss	$ (1)	$ (1)	$ (1)	$ (1)
Net periodic benefit cost	5	5	10	11
Domestic defined benefit pension plans
Net periodic benefit cost:
Service cost	1	1	1	1
Interest cost	1	1	2	2
Expected return on plan assets	(1)	(1)	(2)	(2)
Amortization of net actuarial loss	0		1	1
Net periodic benefit cost	1	1	2	2
International defined benefit pension plans
Net periodic benefit cost:
Service cost	3	4	6	8
Interest cost	6	7	12	14
Expected return on plan assets	(9)	(9)	(17)	(17)
Amortization of net actuarial loss	4	2	7	4
Net periodic benefit cost	$ 4	$ 4	$ 8	$ 9

Postretirement Benefit Plans 62

Postretirement Benefit Plans (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Other Postretirement Benefit Expense	$ 1	$ 2	$ 2	$ 3
Amortization of net actuarial loss (less than $1 million for the three and six months ended June 30, 2015)	$ (1)	$ (1)	(1)	(1)
Employer contribution to defined benefit plan			13	$ 22
Minimum
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Additional contributions			11
Maximum
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Additional contributions			$ 21

Share-Based Compensation Plan63

Share-Based Compensation Plans (Details Textual) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation	$ 4,000,000	$ 5,000,000	$ 8,000,000	$ 9,000,000
Shares Awarded (in shares)			677
Stock-Based Compensation Plans (Textual) [Abstract]
Amount of cash received from the exercise of stock options			$ 9,000,000	$ 17,000,000
Aggregate intrinsic value of outstanding stock options	22,000,000		22,000,000
Aggregate intrinsic value of exercisable stock options	20,000,000		20,000,000
Aggregate intrinsic value of vested and expected to vest stock options	22,000,000		22,000,000
Total intrinsic value of options exercised			3,000,000
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Unamortized compensation expense	8,000,000		$ 8,000,000
Weighted average period			2 years 2 months
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Unamortized compensation expense	26,000,000		$ 26,000,000
Weighted average period			2 years 2 months
Shares Awarded (in shares)			388
Performance Based Shares
Share-based Compensation Arrangement by Share-based Payment Award
Unamortized compensation expense	$ 5,000,000		$ 5,000,000
Weighted average period			2 years 2 months
Shares Awarded (in shares)			98

Share-Based Compensation Plan64

Share-Based Compensation Plans (Details 1) - $ / shares shares in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Summary of the changes in outstanding stock options
Outstanding, beginning of period (in shares)	2,989
Granted (in shares)	677
Exercised (in shares)	(348)
Forfeited (in shares)	(49)
Outstanding, end of period (in shares)	3,269	2,989
Options exercisable, ending of period (in shares)	2,121
Vested and expected, end of period (in shares)	3,107
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding, beginning of period (in usd per share)	$ 28.60
Granted (in usd per share)	36
Exercised (in usd per share)	27.26
Forfeited (in usd per share)	33.14
Outstanding, end of period (in usd per share)	30.22	$ 28.60
Options exercisable, end of period (in usd per share)	27.38
Vested and expected, end of period (in usd per share)	$ 29.96
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted Average Remaining Contractual Term [Roll Forward]
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	6 years 11 months	6 years 6 months
Granted	10 years
Exercised	5 years 2 months
Forfeited	8 years 6 months
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	6 years 11 months	6 years 6 months
Options exercisable, end of period	5 years 10 months
Vested and expected to vest, end of period	6 years 10 months

Share-Based Compensation Plan65

Share-Based Compensation Plans (Details 2) - Jun. 30, 2015 - Stock Options - $ / shares	Total
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	1.57%
Volatility	27.77%
Risk-free interest rate	1.64%
Expected term (in years)	5 years 7 months 3 days
Weighted-average fair value / share (in usd per share)	$ 8.53

Share-Based Compensation Plan66

Share-Based Compensation Plans (Details 3) - 6 months ended Jun. 30, 2015 - Restricted Stock [Member] - $ / shares shares in Thousands	Total
Summary of restricted stock activity
Outstanding, beginning of period (in shares)	1,171
Granted (in shares)	388
Vested (in shares)	(338)
Forfeited (in shares)	(51)
Outstanding, end of period (in shares)	1,170
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Outstanding, beginning of period (in usd per share)	$ 31.80
Granted (in usd per share)	36.04
Vested (in usd per share)	27.75
Forfeited (in usd per share)	32.04
Outstanding, end of period (in usd per share)	$ 34.40

Share-Based Compensation Plan67

Share-Based Compensation Plans (Details 4) - 6 months ended Jun. 30, 2015 - Performance Based Shares - $ / shares shares in Thousands	Total
Summary of performance share activity
Outstanding, beginning of period (in shares)	124
Granted (in shares)	98
Vested (in shares)	0
Forfeited (in shares)	(10)
Outstanding, end of period (in shares)	212
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Outstanding, beginning of period (in usd per share)	$ 33.95
Granted (in usd per share)	36.02
Vested (in usd per share)	0
Forfeited (in usd per share)	32.17
Outstanding, end of period (in usd per share)	$ 34.86

Capital Stock (Details)

Capital Stock (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Aug. 20, 2013	Aug. 18, 2012
Equity, Class of Treasury Stock [Line Items]
Shares repurchased (in shares) (less than 0.1 million shares in the three months ended June 30, 2015 and three and six months ended June 30, 2014, repurchased outside of repurchase programs)	100,000	100,000	100,000	100,000
Shares repurchased (in dollars) (less than $1 million in the three months ended June 30, 2015 and 2014, repurchased outside of repurchase programs)	$ 1	$ 1	$ 3	$ 1
2013 Stock Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount					$ 250
Shares repurchased (in shares) (less than 0.1 million shares in the three months ended June 30, 2015 and three and six months ended June 30, 2014, repurchased outside of repurchase programs)	0	1,300,000	1,400,000	2,600,000
Shares repurchased (in dollars) (less than $1 million in the three months ended June 30, 2015 and 2014, repurchased outside of repurchase programs)		$ 50	$ 50	$ 100
Stock repurchase program, remaining authorized repurchase amount	$ 20		$ 20
2012 Stock Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount						$ 2
Shares repurchased (in shares) (less than 0.1 million shares in the three months ended June 30, 2015 and three and six months ended June 30, 2014, repurchased outside of repurchase programs)	0	0	0	0
Stock repurchase program, remaining number of shares authorized to be repurchased	1,000,000		1,000,000

Accumulated Other Comprehensi69

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ (233)		$ (99)
Foreign currency translation adjustment	26	$ 3	(103)	$ 1
Foreign currency gain reclassified into gain on sale of businesses	0	$ 0	(8)	$ 0
Income tax expense on amortization of postretirement benefit plan items	(1)		(2)
Unrealized loss on foreign exchange agreements			(5)
Ending balance	(198)		(198)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	8		145
Foreign currency translation adjustment	26		(103)
Income tax expense on amortization of postretirement benefit plan items	0		0
Unrealized loss on foreign exchange agreements			0
Ending balance	34		34
Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(228)		(231)
Foreign currency translation adjustment	0		0
Income tax expense on amortization of postretirement benefit plan items	(1)		(2)
Unrealized loss on foreign exchange agreements			0
Ending balance	(225)		(225)
Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(13)		(13)
Foreign currency translation adjustment	0		0
Income tax expense on amortization of postretirement benefit plan items	0		0
Unrealized loss on foreign exchange agreements			(5)
Ending balance	(7)		(7)
Gain on sale of businesses
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Foreign currency gain reclassified into gain on sale of businesses			8
Gain on sale of businesses | Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Foreign currency gain reclassified into gain on sale of businesses			8
Gain on sale of businesses | Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Foreign currency gain reclassified into gain on sale of businesses			0
Gain on sale of businesses | Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Foreign currency gain reclassified into gain on sale of businesses			0
Cost of revenue
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	1		2
Reclassification of unrealized gain (loss) on foreign exchange agreements			(1)
Cost of revenue | Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	0		0
Reclassification of unrealized gain (loss) on foreign exchange agreements			0
Cost of revenue | Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	1		2
Reclassification of unrealized gain (loss) on foreign exchange agreements			0
Cost of revenue | Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	0		0
Reclassification of unrealized gain (loss) on foreign exchange agreements			(1)
Selling, general and administrative expenses
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	2		5
Selling, general and administrative expenses | Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	0		0
Selling, general and administrative expenses | Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	2		5
Selling, general and administrative expenses | Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	0		0
Other non-operating expense, net
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	1		1
Other non-operating expense, net | Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	0		0
Other non-operating expense, net | Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	1		1
Other non-operating expense, net | Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	0		0
Revenue
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements	(7)		(11)
Income tax benefit on reclassification of unrealized loss on foreign exchange agreements into revenue	(1)		(1)
Revenue | Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements	0		0
Income tax benefit on reclassification of unrealized loss on foreign exchange agreements into revenue	0		0
Revenue | Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements	0		0
Income tax benefit on reclassification of unrealized loss on foreign exchange agreements into revenue	0		0
Revenue | Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements	(7)		(11)
Income tax benefit on reclassification of unrealized loss on foreign exchange agreements into revenue	$ (1)		$ (1)

Commitments and Contingencies70

Commitments and Contingencies (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Accrual for Environmental Loss Contingencies, Gross	$ 5		$ 5
Loss Contingency Accrual	6		$ 9
Warranties
Warranty accrual – January 1	31	$ 37
Net changes for product warranties in the period	14	12
Settlement of warranty claims	(13)	(15)
Foreign currency and other	(1)	0
Warranty accrual - June 30	$ 31	$ 34

Commitments and Contingencies71

Commitments and Contingencies (Details Textual) - USD ($) $ in Millions	Dec. 17, 2014	Jun. 30, 2015	Dec. 31, 2014
Loss Contingencies [Line Items]
Accrual for legal matters		$ 6	$ 9
Estimated environmental matters		$ 5	$ 5
Judicial Ruling
Loss Contingencies [Line Items]
Fines assessed	$ 1.6

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Financial information for each reportable segment
Revenue		$ 920	$ 1,005	$ 1,757	$ 1,911
Operating income		104	116	187	192
Depreciation and amortization		34	36	69	72
Capital expenditures		20	23	57	48
Water Infrastructure
Financial information for each reportable segment
Revenue		551	616	1,051	1,168
Operating income		65	76	112	122
Depreciation and amortization		23	25	48	50
Capital expenditures		12	14	37	27
Applied Water
Financial information for each reportable segment
Revenue		369	389	706	743
Operating income		51	53	97	94
Depreciation and amortization		6	7	12	13
Capital expenditures		3	5	10	10
Regional Selling Location
Financial information for each reportable segment
Depreciation and amortization	[1]	3	3	5	6
Capital expenditures	[2]	4	2	6	4
Corporate and other
Financial information for each reportable segment
Operating income		(12)	(13)	(22)	(24)
Depreciation and amortization		2	1	4	3
Capital expenditures		$ 1	$ 2	$ 4	$ 7
[1]	Depreciation and amortization expense incurred by the Regional selling locations was included in an overall allocation of Regional selling location costs to the segments; however, a certain portion of that expense was not specifically identified to a segment. That expense is captured in this Regional selling location line.
[2]	Represents capital expenditures incurred by the Regional selling locations not allocated to the segments.

Segment Information (Details 1)

Segment Information (Details 1) - USD ($) $ in Millions		Jun. 30, 2015	Dec. 31, 2014
Total assets for each reportable segment
Total assets		$ 4,719	$ 4,860
Water Infrastructure
Total assets for each reportable segment
Total assets		2,073	2,128
Applied Water
Total assets for each reportable segment
Total assets		1,113	1,114
Regional Selling Location
Total assets for each reportable segment
Total assets	[1]	929	961
Corporate and other
Total assets for each reportable segment
Total assets	[2]	$ 604	$ 657
[1]	The Regional selling locations have assets that consist primarily of cash, accounts receivable and inventory which are not allocated to the segments.
[2]	Corporate and other consists of items pertaining to our corporate headquarters function, which principally consist of cash, deferred tax assets, pension assets and certain property, plant and equipment.

Segment Information (Details Te

Segment Information (Details Textual)	6 Months Ended
	Jun. 30, 2015Segment
Segment Information (Textual) [Abstract]
Number of reportable segments	2