Xylem (XYL) 10-Q 1 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 28, 2016
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	Sep. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		179,394,836

Condensed Consolidated Income S

Condensed Consolidated Income Statements (Unaudited) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenue	$ 897	$ 902	$ 2,676	$ 2,659
Cost of revenue	540	551	1,621	1,645
Gross profit	357	351	1,055	1,014
Selling, general and administrative expenses	219	207	665	631
Research and development expenses	23	23	75	71
Restructuring charges	6	1	18	5
Operating income	109	120	297	307
Interest expense	16	13	50	41
Other non-operating income, net	2	0	3	0
Gain from sale of businesses	0	0	0	9
Income before taxes	95	107	250	275
Income tax expense	22	19	40	49
Net income	$ 73	$ 88	$ 210	$ 226
Earnings per share:
Basic (usd per share)	$ 0.41	$ 0.48	$ 1.17	$ 1.25
Diluted (usd per share)	$ 0.41	$ 0.48	$ 1.17	$ 1.24
Weighted average number of shares:
Basic (in shares)	179,308	180,845	178,988	181,471
Diluted (in shares)	180,310	181,632	179,838	182,336
Dividends declared per share (usd per share)	$ 0.1549	$ 0.1408	$ 0.4647	$ 0.4224

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 73	$ 88	$ 210	$ 226
Other comprehensive (loss) income, before tax:
Foreign currency translation adjustment	(8)	(39)	(25)	(142)
Foreign currency gain reclassified into net income	0	0	0	(8)
Net change in derivative hedge agreements:
Unrealized losses	0	0	0	(5)
Amount of (gain) loss reclassified into net income	(1)	5	(2)	17
Net change in postretirement benefit plans:
Amortization of net actuarial loss into net income	3	4	8	12
Other comprehensive loss, before tax	(6)	(30)	(19)	(126)
Income tax impact related to items of other comprehensive income	(3)	1	(2)	4
Other comprehensive loss, net of tax	(3)	(31)	(17)	(130)
Comprehensive income	$ 70	$ 57	$ 193	$ 96

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 659	$ 680
Receivables, less allowances for discounts and doubtful accounts of $29 and $33 in 2016 and 2015, respectively	792	749
Inventories	488	433
Prepaid and other current assets	153	143
Total current assets	2,092	2,005
Property, plant and equipment, net	440	439
Goodwill	1,621	1,584
Other intangible assets, net	444	435
Other non-current assets	181	194
Total assets	4,778	4,657
Current liabilities:
Accounts payable	341	338
Accrued and other current liabilities	438	407
Short-term borrowings and current maturities of long-term debt	62	78
Total current liabilities	841	823
Long-term debt	1,148	1,196
Accrued postretirement benefits	335	335
Deferred income tax liabilities	114	118
Other non-current accrued liabilities	113	101
Total liabilities	2,551	2,573
Commitments and contingencies (Note 17)
Stockholders’ equity:
Common Stock - par value $0.01 per share: Authorized 750.0 shares, issued 190.8 shares and 190.2 shares in 2016 and 2015, respectively	2	2
Capital in excess of par value	1,871	1,834
Retained earnings	1,011	885
Treasury stock – at cost 11.9 shares and 11.8 shares in 2016 and 2015, respectively	(402)	(399)
Accumulated other comprehensive loss	(255)	(238)
Total stockholders’ equity	2,227	2,084
Total liabilities and stockholders’ equity	$ 4,778	$ 4,657

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowances for discounts and doubtful accounts on receivables	$ 29	$ 33
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	750,000,000	750,000,000
Common Stock, shares issued	191,300,000	190,200,000
Treasury Stock, shares	11,900,000	11,800,000

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating Activities
Net income	$ 210	$ 226
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	61	69
Amortization	36	33
Share-based compensation	15	11
Restructuring charges	18	5
Gain from sale of businesses	0	(9)
Other, net	8	10
Payments for restructuring	(11)	(11)
Changes in assets and liabilities (net of acquisitions):
Changes in receivables	(27)	(32)
Changes in inventories	(42)	(15)
Changes in accounts payable	14	6
Other, net	(8)	(33)
Net Cash – Operating activities	274	260
Investing Activities
Capital expenditures	(90)	(78)
Acquisition of business, net of cash acquired	(70)	0
Proceeds from sale of businesses	0	1
Proceeds from Sale of Property, Plant, and Equipment	0	1
Other, net	5	2
Net Cash – Investing activities	(155)	(74)
Financing Activities
Short-term debt issued	62	0
Short-term debt repaid	(80)	(3)
Long-term debt issued	540	0
Long-term debt repaid	(608)	0
Repurchase of common stock	(3)	(128)
Proceeds from exercise of employee stock options	22	14
Dividends paid	(84)	(77)
Other, net	1	0
Net Cash – Financing activities	(150)	(194)
Effect of exchange rate changes on cash	10	(44)
Net change in cash and cash equivalents	(21)	(52)
Cash and cash equivalents at beginning of year	680	663
Cash and cash equivalents at end of period	659	611
Cash paid during the period for:
Interest	34	37
Income taxes (net of refunds received)	$ 60	$ 57

Background and Basis of Present

Background and Basis of Presentation	9 Months Ended
	Sep. 30, 2016
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 operates in two 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 agriculture markets. The Applied Water segment’s major products include pumps, valves, heat exchangers, controls and dispensing equipment. 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 intercompany 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, 2015 (" 2015 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 2015 Annual Report. 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 and indefinite lived intangible impairment testing and contingent liabilities. Actual results could differ from these estimates.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Pronouncements Not Yet Adopted In October 2016, the Financial Accounting Standards Board (“FASB”) issued guidance amending the accounting for income taxes. Under current guidance the recognition of current and deferred income taxes for an intra-entity asset transfer is prohibited until the asset has been sold to an outside party. The amended guidance eliminates the prohibition against immediate recognition of current and deferred income tax amounts associated with intra-entity transfers of assets other than inventory. This guidance is effective for interim and annual periods beginning after December 15, 2017 with early adoption permitted as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued or made available for issuance. The requirements of the amended guidance should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are evaluating the impact of the guidance on our financial condition and results of operations. In June 2016, the FASB issued guidance amending the accounting for the impairment of financial instruments, including trade receivables. Under current guidance, credit losses are recognized when the applicable losses are probable of occurring and this assessment is based on past events and current conditions. The amended guidance eliminates the “probable” threshold and requires an entity to use a broader range of information, including forecast information when estimating expected credit losses. Generally, this should result in a more timely recognition of credit losses. This guidance is effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted for interim and annual periods beginning after December 15, 2018. The requirements of the amended guidance should be applied using a modified retrospective approach except for debt securities, which require a prospective transition approach. We are evaluating the impact of the guidance on our financial condition and results of operations. In February 2016, the FASB issued guidance amending the accounting for leases. Specifically, the amended guidance requires all lessees to record a lease liability at lease inception, with a corresponding right of use asset, except for short-term leases. Lessor accounting is not fundamentally changed. This amended guidance is effective for interim and annual periods beginning after December 15, 2018 using a modified retrospective approach. Early adoption is permitted. We are evaluating the impact of the guidance on our financial condition and results of operations. In July 2015, the 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 of 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 and results of operations. 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 March 2016, the FASB issued an update on accounting for share-based payments. The guidance simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification of excess tax benefits in the Condensed Consolidated Statements of Cash Flows. This standard is effective for annual reporting periods beginning after December 15, 2016. The Company elected to early adopt this standard in the quarter ended June 30, 2016 retroactively to January 1, 2016. The impact of the early adoption resulted in the following: • The Company recorded tax benefits of $1 million and $3 million within income tax expense for the three and nine months ended September 30, 2016, respectively, related to the excess tax benefit on share-based awards. Prior to adoption this amount would have been recorded as an increase of capital in excess of par value. This change could create volatility in the Company's effective tax rate. • The Company no longer reflects the cash received from the excess tax benefit within cash flows from financing activities but instead now reflects this benefit within cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. The Company elected to apply this change in presentation prospectively and thus prior periods have not been adjusted. • The Company elected not to change its policy on accounting for forfeitures and continues to estimate the total number of awards for which the requisite service period will not be rendered. • At this time, the Company has not changed its policy on statutory withholding requirements and will continue to allow the employee to withhold up to the Company's minimum statutory withholding requirements. • The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the three and nine months ended September 30, 2016. This increased diluted weighted average common shares outstanding by less than 50,000 shares for each of the aforementioned periods. In March 2016, the FASB amended the guidance regarding the use of the equity method to record certain investments. Under current guidance, if an investor increases its level of ownership interest in a company and consequently qualifies for the equity method, the investor must retroactively adjust its investment, results of operations and retained earnings to reflect balances that would have arisen if the equity method had been in effect during all previous periods that the investment was held. The amended guidance eliminates the need to retroactively adjust balances and instead allows for the prospective application of the equity method. This guidance is effective prospectively for interim and annual reporting periods beginning after December 15, 2016. We elected to early adopt this guidance effective the first quarter of 2016. The adoption of this guidance did not impact our financial condition or results of operations. In March 2016, in response to inconsistency in practice, the FASB issued guidance regarding the ability to maintain hedge accounting for a derivative instruments when one party to the instrument has been replaced by a new party (“a novation”). The new guidance states that a novation does not preclude the continued application of hedge accounting to a derivative assuming all other hedge accounting criteria continue to be met. This guidance is effective using either a prospective or a modified retrospective approach, for interim and annual reporting periods beginning after December 15, 2016. We elected to early adopt this guidance on a prospective basis effective the first quarter of 2016. The adoption of this guidance did not impact our financial condition or results of operations.

Acquisitions and Divestitures

Acquisitions and Divestitures	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Acquisitions and Divestitures	Acquisitions and Divestitures On August 15, 2016, we entered into a Share Purchase Agreement to acquire all of the direct and indirect subsidiaries of Sensus Worldwide Limited (other than Sensus Industries) (“Sensus”), a global leader in smart meters, network technologies and advanced data analytics services for the water, gas and electric industries. The purchase price was agreed at $1.7 billion , net of cash acquired. We completed the acquisition of Sensus on October 31, 2016 pursuant to the terms of the Share Purchase Agreement and an Amendment to the Share Purchase Agreement dated as of October 31, 2016. Sensus, headquartered in Raleigh, North Carolina, has approximately 3,300 employees across 28 locations on six continents. On February 1, 2016, we acquired Tideland Signal Corporation (“Tideland”), a leading producer of analytics solutions in the coastal and ocean management sectors, for $70 million . Tideland, a privately-owned company headquartered in Texas, has approximately 160 employees. Our condensed consolidated financial statements include Tideland’s results of operations from February 1, 2016 within the Water Infrastructure segment. There were no divestitures for the three months ended September 30, 2015 . For the nine months ended September 30, 2015 , we divested two businesses for $1 million , 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

Restructuring Charges

Restructuring Charges	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Restructuring Charges	Restructuring Charges From time to time, the Company will incur costs related to restructuring actions in order to optimize our cost base and more strategically position ourselves based on the economic environment and customer demand. During the three and nine months ended September 30, 2016 , we recognized restructuring charges of $6 million and $18 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 included the reduction of headcount and consolidation of facilities within our Applied Water and Water Infrastructure segments, as well as Corporate headcount reductions. During the three and nine months ended September 30, 2015 , we recognized restructuring charges of $1 million and $5 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 included the reduction of headcount and consolidation of facilities within our Water Infrastructure segment. The following table presents the components of restructuring expense. Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2016 2015 2016 2015 By component: Severance and other charges $ 6 $ 1 $ 18 $ 6 Lease related charges 1 — 1 — Reversal of restructuring accruals (1 ) — (1 ) (1 ) Total restructuring charges $ 6 $ 1 $ 18 $ 5 By segment: Water Infrastructure $ 5 $ 1 $ 12 $ 5 Applied Water 1 — 4 — Corporate and other — — 2 — 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 nine months ended September 30, 2016 and 2015 . (in millions) 2016 2015 Restructuring accruals - January 1 $ 3 $ 12 Restructuring charges 18 5 Cash payments (11 ) (11 ) Foreign currency and other (1 ) (1 ) Restructuring accruals - September 30 $ 9 $ 5 By segment: Water Infrastructure $ 4 $ 2 Applied Water — — Regional selling locations (a) 3 3 Corporate and other 2 — (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 nine months ended September 30, 2016 and 2015 of employee position eliminations associated with restructuring activities. 2016 2015 Planned reductions - January 1 82 133 Additional planned reductions 364 87 Actual reductions (296 ) (120 ) Planned reductions - September 30 150 100 Total expected costs associated with actions that commenced during 2016 are approximately $20 million for Water Infrastructure, including $11 million incurred during the nine months ended September 30, 2016 . These costs primarily consist of severance charges. We currently expect activity related to these actions to continue through the end of 2017. Total expected costs associated with actions that commenced during 2016 are approximately $6 million for Applied Water, including $4 million incurred during the nine months ended September 30, 2016 . These costs primarily consist of severance charges. We currently expect activity related to these actions to continue through the end of 2017. Total expected costs associated with actions that commenced during 2016 are approximately $2 million for Corporate, which we incurred during the nine months ended September 30, 2016 . These costs primarily consist of severance charges. Total expected costs associated with actions that commenced during 2015 are approximately $5 million for Water Infrastructure. Approximately $4 million of the expected cost was incurred in 2015 and $1 million was incurred during the nine months ended September 30, 2016 . These costs primarily consist of severance charges and substantially all of the costs associated with these actions have been incurred. Total expected costs associated with actions that commenced during 2015 are approximately $1 million

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
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 discrete items. The income tax provision for the three months ended September 30, 2016 was $22 million resulting in an effective tax rate of 22.9% , compared to $19 million resulting in an effective tax rate of 17.4% for the same period in 2015 . The income tax provision for the nine months ended September 30, 2016 was $40 million resulting in an effective tax rate of 16% , compared to $49 million resulting in an effective tax rate of 17.6% for the same period in 2015 . The effective tax rate was lower than the United States federal statutory rate primarily due to geographic mix of earnings in both periods as well as the release of an unrecognized tax benefit in 2016 as a result of the effective settlement of a tax examination offset in part by the establishment of a valuation allowance in 2016. 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 in the condensed consolidated financial statements 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 September 30, 2016 was $27 million , which is a reduction of $20 million from the balance as of December 31, 2015, resulting primarily from the effective settlement of a tax examination in 2016. The unrecognized tax benefits, if ultimately recognized will reduce our 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 September 30, 2016 , we had $2 million

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2016
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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net income (in millions) $ 73 $ 88 $ 210 $ 226 Shares (in thousands): Weighted average common shares outstanding 179,272 180,815 178,951 181,428 Add: Participating securities (a) 36 30 37 43 Weighted average common shares outstanding — Basic 179,308 180,845 178,988 181,471 Plus incremental shares from assumed conversions: (b) Dilutive effect of stock options 593 424 462 489 Dilutive effect of restricted stock units and performance share units 409 363 388 376 Weighted average common shares outstanding — Diluted 180,310 181,632 179,838 182,336 Basic earnings per share $ 0.41 $ 0.48 $ 1.17 $ 1.25 Diluted earnings per share $ 0.41 $ 0.48 $ 1.17 $ 1.24 (a) Restricted stock unit 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 units 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 units and performance share units, reduced by the repurchase of shares with the proceeds from the assumed exercises and unrecognized compensation expense for outstanding awards. Performance share units will be included in the treasury stock calculation of diluted earnings per share upon achievement of underlying performance or market conditions at the end of the reporting period. See Note 14 , "Share-Based Compensation Plans" to the condensed consolidated financial statements for further detail on the performance share units. Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2016 2015 2016 2015 Stock options 1,701 2,703 2,008 2,712 Restricted stock units 529 747 570 754 Performance share units 414 191 360 187

Inventories

Inventories	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories The components of total inventories are summarized as follows: (in millions) September 30, December 31, Finished goods $ 220 $ 188 Work in process 46 32 Raw materials 222 213 Total inventories $ 488 $ 433 The amounts in the above table of inventory composition as of December 31, 2015 have been revised to appropriately classify as Raw Materials $25 million

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
	Sep. 30, 2016
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) September 30, December 31, Land, buildings and improvements $ 247 $ 240 Machinery and equipment 649 650 Equipment held for lease or rental 225 205 Furniture and fixtures 81 79 Construction work in progress 61 46 Other 19 19 Total property, plant and equipment, gross 1,282 1,239 Less accumulated depreciation 842 800 Total property, plant and equipment, net $ 440 $ 439 Depreciation expense of $20 million and $61 million was recognized in the three and nine months ended September 30, 2016 , respectively, and $22 million and $69 million for the three and nine months ended September 30, 2015

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill Changes in the carrying value of goodwill by reportable segment for the nine months ended September 30, 2016 are as follows: (in millions) Water Infrastructure Applied Water Total Balance as of January 1, 2016 $ 1,066 $ 518 $ 1,584 Activity in 2016 Acquired (a) 39 — 39 Foreign currency and other (2 ) (2 ) Balance as of September 30, 2016 $ 1,103 $ 518 $ 1,621 (a) On February 1, 2016, we acquired Tideland and recorded $39 million of goodwill. Refer to Note 3, "Acquisitions and Divestitures" for additional information. Other Intangible Assets Information regarding our other intangible assets is as follows: September 30, 2016 December 31, 2015 (in millions) Carrying Amount Accumulated Amortization Net Intangibles Carrying Amount Accumulated Amortization Net Intangibles Customer and distributor relationships $ 342 $ (159 ) $ 183 $ 320 $ (140 ) $ 180 Proprietary technology and patents 119 (60 ) 59 116 (54 ) 62 Trademarks 43 (22 ) 21 35 (19 ) 16 Software 168 (119 ) 49 155 (110 ) 45 Other 7 (7 ) — 8 (8 ) — Indefinite-lived intangibles 132 — 132 132 — 132 $ 811 $ (367 ) $ 444 $ 766 $ (331 ) $ 435 Amortization expense related to finite-lived intangible assets was $12 million and $36 million for the three and nine months ended September 30, 2016 , respectively, and $11 million and $33 million for the three and nine months ended September 30, 2015

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2016
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 revenue, expenses, cash receipts, cash payments, and the value of our stockholders' equity. 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 and reduce the volatility in stockholders' equity. 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 and Australian Dollar. We held forward foreign exchange contracts with purchase notional amounts totaling $21 million and $94 million as of September 30, 2016 and December 31, 2015 , respectively. As of September 30, 2016 , our most significant foreign currency derivatives include contracts to purchase Swedish Krona and sell Euro, sell Canadian Dollar and purchase US Dollar, sell Canadian Dollar and purchase Euro, and purchase Polish Zloty and sell Euro. The purchased notional amounts associated with these currency derivatives are $14 million , $2 million , $2 million , and $2 million , respectively. As of December 31, 2015 , our most significant foreign currency derivatives included contracts to purchase Swedish Krona and sell Euro, sell U.S. Dollar and purchase Euro, and to sell British Pound and purchase Euro. The purchased notional amounts associated with these currency derivatives are $51 million , $24 million and $12 million , respectively. Hedges of Net Investments in Foreign Operations We are exposed to changes in foreign currencies impacting our net investments held in foreign subsidiaries. Cross Currency Swaps Beginning in 2015, we entered into cross currency swaps to manage our exposure to fluctuations in the Euro-U.S. Dollar exchange rate. The total notional amount of derivative instruments designated as net investment hedges was $419 million and $411 million as of September 30, 2016 and December 31, 2015 , respectively. Foreign Currency Denominated Debt On March 11, 2016, we issued 2.250% Senior Notes of € 500 million aggregate principal amount due March 2023. We designated the entirety of the outstanding balance, or $555 million , net of unamortized discount, as a hedge of a net investment in certain foreign subsidiaries. Forward Contracts On September 23, 2016, we entered into forward contacts to manage our exposure to fluctuations in the Euro-U.S. Dollar exchange rate. The total notional amount of derivative instruments designated as net investment hedges was $336 million as of September 30, 2016. 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 Nine Months Ended September 30, September 30, (in millions) 2016 2015 2016 2015 Cash Flow Hedges Foreign Exchange Contracts Amount of (loss) recognized in OCI (a) $ — $ — $ — $ (5 ) Amount of (gain) loss reclassified from OCI into revenue (a) (1 ) 5 (1 ) 16 Amount of (gain) loss reclassified from OCI into cost of revenue (a) — — (1 ) 1 Net Investment Hedges Cross Currency Swaps Amount of (loss) recognized in OCI (a) $ (7 ) $ — $ (7 ) $ — Foreign Currency Denominated Debt Amount of (loss) recognized in OCI (a) $ (5 ) $ — $ (10 ) $ — (a) Effective portion As of September 30, 2016 , $1 million of net unrealized losses on cash flow hedges are expected to be reclassified into earnings in the next 12 months. The ineffective portion of a cash flow hedge is recognized immediately in selling, general and administrative expenses in the Condensed Consolidated Income Statements and was not material for the three and nine months ended September 30, 2016 and 2015 . As of September 30, 2016 , no gains or losses on the net investment hedges are expected to be reclassified into earnings over their duration. The net investment hedges did not experience any ineffectiveness for the three and nine months ended September 30, 2016 . The fair values of our derivative assets and liabilities are measured on a recurring basis using Level 2 inputs and are determined through the use of models that consider various assumptions including yield curves, time value and other measurements. The fair values of our foreign exchange contracts currently included in our hedging program designated as hedging instruments were as follows: (in millions) September 30, December 31, Derivatives designated as hedging instruments Assets Cash Flow Hedges Other current assets $ — $ 2 Liabilities Cash Flow Hedges Other current liabilities $ (1 ) $ — Net Investment Hedges Other non-current liabilities $ (30 ) $ (18 ) The fair value of our long-term debt, due in 2023, designated as a net investment hedge was $608 million as of September 30, 2016

Accrued and Other Current Liabi

Accrued and Other Current Liabilities	9 Months Ended
	Sep. 30, 2016
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) September 30, December 31, Compensation and other employee benefits $ 163 $ 156 Customer-related liabilities 70 64 Accrued warranty costs 35 33 Accrued taxes 67 64 Other accrued liabilities 103 90 Total accrued and other current liabilities $ 438 $ 407

Credit Facilities and Debt

Credit Facilities and Debt	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Credit Facilities and Debt	Credit Facilities and Debt Total debt outstanding is summarized as follows: (in millions) September 30, December 31, 3.550% Senior Notes due 2016 $ — $ 600 4.875% Senior Notes due 2021 (a) 600 600 2.250% Senior Notes due 2023 (a) 560 — Commercial paper 20 — Research and development facility agreement 42 76 Other — 2 Debt issuance costs and unamortized discount (b) (12 ) (4 ) Total debt 1,210 1,274 Less: short-term borrowings and current maturities of long-term debt 62 78 Total long-term debt $ 1,148 $ 1,196 (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 2021 was $654 million and $640 million as of September 30, 2016 and December 31, 2015 , respectively. The fair value of our Senior Notes due 2023 was $608 million as of September 30, 2016 . (b) The debt issuance costs and unamortized discount are recognized as a reduction in the carrying value of the Senior Notes in the Condensed Consolidated Balance Sheets and are 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"). On March 11, 2016, we issued 2.250% Senior Notes of € 500 million aggregate principal amount due March 2023 (the "Senior Notes due 2023" and together with the Senior Notes due 2016 and 2021, 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. We may redeem all or a portion of the Senior Notes due 2023 at our option at any time on or after December 11, 2022 (three months prior to their maturity), at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest to the redemption date. We may also redeem all, but not part, of the Senior Notes due 2023 in the event of specified tax events as described in the applicable Senior Notes indenture. If a change of control triggering event (as defined in the applicable 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 September 30, 2016 , we were in compliance with all covenants for the Senior Notes. Interest on the Senior Notes due 2016 was payable on March 20 and September 20 of each year. Interest on the Senior Not es due 2021 is payable on April 1 and October 1 of each year. Interest on the Senior Notes due 2023 is payable on March 11 of each year. On April 11, 2016, our Senior Notes due 2016 were settled for a total of $607 million which included make-whole interest expense of $7 million . The Company recorded this loss on extinguishment of the debt in the second quarter of 2016 as interest expense. Bridge Facility On August 15, 2016, we entered into a $1.3 billion senior unsecured bridge facility (the “Bridge Facility”). The Bridge Facility was put in place to finance the Sensus acquisition and to pay the related fees and expenses to the extent we were unable to finance the Sensus acquisition through available cash on hand, a new term loan and the issuance of the Notes (refer to Note 15 for further information on the issuance of the Notes). The Bridge Facility was terminated on October 31, 2016 in connection with the Sensus acquisition. 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 of an amendment to the Credit Facility dated August 30, 2016, we may not exceed a maximum leverage ratio of 4.00 to 1.00 (based on a ratio of total debt to earnings before interest, taxes, depreciation and amortization) for a period of 12-months following the Sensus acquisition and a maximum leverage ratio of 3.50 to 1.00 through the rest of 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 September 30, 2016 , we were in compliance with all covenants . As of September 30, 2016 , the Credit Facility was undrawn. Commercial Paper Our commercial paper program generally serves as a means of short-term funding and has a combined outstanding limit of $600 million inclusive of the Five-Year Revolving Credit Facility. As of September 30, 2016 , $20 million of the Company’s $600 million commercial paper program was outstanding at a weighted average interest rate of 0.75% . We will periodically borrow under this program and may borrow under it in future periods. Research and Development Facility Agreement On December 3, 2015, the Company amended and restated its Risk Sharing Finance Facility Agreement (the "R&D Facility Agreement") with The European Investment Bank (the "EIB") to amend the maturity date. The facility provides an aggregate principal amount of up to €120 million (approximately $135 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 during the period from 2013 through 2016 at the Company's facilities in Sweden, Germany, Italy, the United Kingdom, Austria, Norway and Hungary. Under the R&D Facility Agreement, the borrower was able to draw loans on or before March 31, 2016 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 September 30, 2016 , we were in compliance with all covenants. As of September 30, 2016 and December 31, 2015, $42 million and $76 million was outstanding, respectively, under the R&D Facility Agreement. Although the borrowing term for this arrangement is up to five years, we have classified it as short-term debt on our Condensed Consolidated Balance Sheets since we intend to repay this obligation in less than a year.

Postretirement Benefit Plans

Postretirement Benefit Plans	9 Months Ended
	Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Postretirement Benefit Plans	Postretirement Benefit Plans The components of net periodic benefit cost for our defined benefit pension plans are as follows: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2016 2015 2016 2015 Domestic defined benefit pension plans: Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 1 1 3 3 Expected return on plan assets (2 ) (2 ) (4 ) (4 ) Amortization of net actuarial loss 1 1 2 2 Net periodic benefit cost $ 1 $ 1 $ 3 $ 3 International defined benefit pension plans: Service cost $ 3 $ 3 $ 8 $ 9 Interest cost 6 6 18 18 Expected return on plan assets (8 ) (8 ) (25 ) (25 ) Amortization of net actuarial loss 2 3 6 10 Net periodic benefit cost $ 3 $ 4 $ 7 $ 12 Total net periodic benefit cost $ 4 $ 5 $ 10 $ 15 The total net periodic benefit cost for other postretirement employee benefit plans was less than $1 million and $2 million including amounts recognized in other comprehensive income ("OCI") of less than $1 million for both the three and nine months ended September 30, 2016 , respectively. The total net periodic benefit cost for other postretirement employee benefit plans was $1 million and $3 million including amounts recognized in OCI of less than $1 million for both the three and nine months ended September 30, 2015 , respectively. We contributed $22 million and $21 million to our defined benefit plans during the nine months ended September 30, 2016 and 2015 , respectively. Additional contributions ranging between approximately $6 million and $10 million are expected during the remainder of 2016

Share-Based Compensation Plans

Share-Based Compensation Plans	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation Plans	Share-Based Compensation Plans Share-based compensation expense was $5 million and $15 million during the three and nine months ended September 30, 2016 , respectively, and $3 million and $11 million during the three and nine months ended September 30, 2015 , respectively. The unrecognized compensation expense related to our stock options, restricted stock units and performance share units was $6 million , $19 million and $10 million , respectively, at September 30, 2016 and is expected to be recognized over a weighted average period of 1.9 , 1.8 and 2.2 years, respectively. The amount of cash received from the exercise of stock options was $22 million and $14 million for the nine months ended September 30, 2016 and 2015 , respectively. Stock Option Grants The following is a summary of the changes in outstanding stock options for the nine months ended September 30, 2016 . Shares (in thousands) Weighted Average Exercise Price / Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding at January 1, 2016 2,561 $ 31.16 6.8 Granted 463 37.90 Exercised (797 ) 27.91 Forfeited and expired (44 ) 35.55 Outstanding at September 30, 2016 2,183 $ 33.68 7.2 $ 41 Options exercisable at September 30, 2016 1,222 $ 29.40 5.9 $ 26 Vested and expected to vest as of September 30, 2016 2,098 $ 33.53 7.1 $ 40 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 nine months ended September 30, 2016 was $12 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 2016 grants. Volatility 28.87 % Risk-free interest rate 1.41 % Dividend yield 1.63 % Expected term (in years) 5.6 Weighted-average fair value / share $ 9.05 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 Unit Grants The following is a summary of restricted stock units activity for the nine months ended September 30, 2016 . The fair value of the restricted stock units is equal to the closing share price on the date of the grant. Shares (in thousands) Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2016 1,013 $ 34.52 Granted 300 38.99 Vested (291 ) 29.61 Forfeited (75 ) 36.75 Outstanding at September 30, 2016 947 $ 37.27 ROIC Performance Share Unit Grants The following is a summary of Return on Invested Capital ("ROIC") performance share unit grants for the nine months ended September 30, 2016 . The fair value of the ROIC performance share units is equal to the closing share price on the date of the grant. Shares (in thousands) Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2016 160 $ 35.48 Granted 111 37.87 Vested — — Forfeited (20 ) 28.31 Outstanding at September 30, 2016 251 $ 37.09 TSR Performance Share Units Grants The following is a summary of our Total Shareholder Return ("TSR") performance share unit grants for the nine months ended September 30, 2016 . Shares (in thousands) Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2016 — $ — Granted 111 46.13 Vested — — Forfeited (2 ) 45.34 Outstanding at September 30, 2016 109 $ 46.14 The fair value of TSR performance share units was calculated on the date of grant using a Monte Carlo simulation model utilizing several key assumptions, including expected Company and peer company share price volatility, correlation coefficients between peers, the risk-free rate of return, the expected dividend yield and other award design features. The following are weighted-average assumptions for 2016 grants. Volatility 31.7 % Risk-free interest rate 0.88 % Dividend yield 1.64 %

Capital Stock

Capital Stock	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Capital Stock	Capital Stock On August 24, 2015, our Board of Directors authorized the repurchase of up to $500 million in shares with no expiration date. The program's objective is to deploy our capital in a manner that benefits our shareholders and maintains our focus on growth. There were no shares repurchased under this program during the three and nine months ended September 30, 2016 . There are up to $420 million in shares that may still be purchased under this plan as of September 30, 2016 . 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 was to deploy our capital in a manner that benefited our shareholders and maintained our focus on growth. For the three and nine months ended September 30, 2015, we repurchased 0.6 million and 2.0 million shares for $20 million and $70 million , respectively. As of December 31, 2015 , we have exhausted the authorized amount to repurchase shares under this plan. On August 18, 2012, our 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 nine months ended September 30, 2016 . During the three and nine months ended September 30, 2015 we repurchased 0.8 million shares for $25 million in both periods. There are up to 0.3 million shares (approximately $13 million in value) that may still be purchased under this plan as of September 30, 2016 . 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 for the three and nine months ended September 30, 2016

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 30, 2016
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 September 30, 2016 : (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at July 1, 2016 $ (69 ) $ (183 ) $ — $ (252 ) Foreign currency translation adjustment (8 ) — — (8 ) Tax on foreign currency translation adjustment 4 — — 4 Amortization of net actuarial loss on postretirement benefit plans into: 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 gain on derivative hedge agreements into revenue — — (1 ) (1 ) Balance at September 30, 2016 $ (73 ) $ (181 ) $ (1 ) $ (255 ) The following table provides the components of accumulated other comprehensive income (loss) for the nine months ended September 30, 2016 : (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at January 1, 2016 $ (43 ) $ (185 ) $ (10 ) $ (238 ) Foreign currency translation adjustment (25 ) — — (25 ) Tax on foreign currency translation adjustment 6 — — 6 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 — (4 ) — (4 ) Reclassification of unrealized gain on derivative hedge agreements into cost of revenue — — (1 ) (1 ) Reclassification of unrealized gain on derivative hedge agreements into revenue — — (1 ) (1 ) Reclassification of unrealized loss on net investment hedge (11 ) — 11 — Balance at September 30, 2016 $ (73 ) $ (181 ) $ (1 ) $ (255 )

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings 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 or about February 17, 2009, following a statement submitted to the Spanish Competition Authority (Comision Nacional de la Competencia, "CNC") by Grupo Industrial Ercole Marelli, S.A. regarding an anti-competitive agreement in which it said it had been participating, the CNC conducted an investigation at ITT Water & Wastewater España S.A. (now named Xylem Water Solutions España S.A.), at the Spanish Association of Fluid Pump Manufacturers (the "Association"), and at the offices of other members of the Association. On September 16, 2009, the Directorate of Investigation of the CNC commenced formal proceedings for alleged restrictive practices allegedly prohibited under applicable law. Following the conclusion of the formal proceedings, the CNC Council imposed fines on the Association and nineteen Spanish manufacturers and distributors of fluid pumps, including a fine of Euro 2.4 million applied to ITT Water & Wastewater España S.A. and ITT Corporation (now ITT LLC). The Company's appeals of the decision were rejected and the fine was paid in March 2016. This matter is now closed. 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 among ITT Corporation (now ITT LLC), Exelis and Xylem, ITT Corporation (now ITT LLC) 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 ITT’s legacy products. We believe ITT Corporation (now ITT LLC) 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. Indemnifications As part of our 2011 spin-off from our former parent, ITT Corporation (now ITT LLC), 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. Guarantees We obtain certain stand-by letters of credit, bank guarantees and surety bonds from third-party financial institutions in the ordinary course of business when required under contracts or to satisfy insurance related requirements. As of September 30, 2016 and December 31, 2015 , the amount of stand-by letters of credit, bank guarantees and surety bonds was $177 million and $161 million , respectively. 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 $4 million as of both September 30, 2016 and December 31, 2015 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) 2016 2015 Warranty accrual – January 1 $ 33 $ 31 Net charges for product warranties in the period 20 21 Settlement of warranty claims (21 ) (21 ) Foreign currency and other 3 — Warranty accrual - September 30 $ 35 $ 31

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2016
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 agriculture 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 2015 Annual Report). The following tables contain financial information for each reportable segment: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2016 2015 2016 2015 Revenue: Water Infrastructure $ 554 $ 551 $ 1,634 $ 1,602 Applied Water 343 351 1,042 1,057 Total $ 897 $ 902 $ 2,676 $ 2,659 Operating Income: Water Infrastructure $ 79 $ 83 $ 203 $ 195 Applied Water 50 46 140 143 Corporate and other (20 ) (9 ) (46 ) (31 ) Total $ 109 $ 120 $ 297 $ 307 Depreciation and Amortization: Water Infrastructure $ 22 $ 22 $ 65 $ 70 Applied Water 6 7 18 19 Regional selling locations (a) 2 3 8 8 Corporate and other 2 1 6 5 Total $ 32 $ 33 $ 97 $ 102 Capital Expenditures: Water Infrastructure $ 19 $ 12 $ 53 $ 49 Applied Water 4 5 15 15 Regional selling locations (b) 4 3 19 9 Corporate and other 1 1 3 5 Total $ 28 $ 21 $ 90 $ 78 (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: (in millions) September 30, December 31, Water Infrastructure $ 2,107 $ 2,024 Applied Water 1,042 1,054 Regional selling location (a) 1,021 905 Corporate and other (b) 608 674 Total $ 4,778 $ 4,657 (a) The Regional selling locations have assets that consist primarily of cash, accounts receivable and inventory which are not allocated to the segments. (b)

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Senior Notes On October 11, 2016, we issued 3.250% Senior Notes of $500 million aggregate principal amount due October 2026 (the “Senior Notes due 2026”) and 4.375% Senior Notes of $400 million aggregate principal amount due October 2046 (the “Senior Notes due 2046” and, together with the Senior Notes due 2026, the “Notes”). Interest on the Notes is payable semiannually on May 1 and November 1 of each year beginning on May 1, 2017. We used the net proceeds of the Notes, together with cash on hand, proceeds from issuances under our existing commercial paper program and borrowings under the Term Loan (as described below), to partially fund the acquisition of the direct and indirect subsidiaries of Sensus (other than Sensus Industries Limited) (refer to Note 3 for further information on the Sensus acquisition). Term Loan On October 24, 2016, the Company’s subsidiary, Xylem Europe GmbH (the “borrower”) entered into a 12-month €150 million (approximately $164 million as of October 28, 2016) term loan facility (the “Term Facility”) the terms of which are set forth in a term loan agreement, among the borrower, the Company, as parent guarantor and ING Bank. The Company has entered into a parent guarantee in favor of ING Bank also dated October 24, 2016 to secure all present and future obligations of the borrower under the Term Loan Agreement. The Term Facility was used to partially fund the Sensus Acquisition. The Term Facility will mature on October 27, 2017. The Term Facility bears interest at EURIBOR plus 0.35% . The Agreement contains certain representations and warranties, certain affirmative covenants, certain negative covenants, a financial covenant, certain conditions and events of default that are customarily required for similar financings. Finance Contract with the European Investment Bank On October 28, 2016, the Company entered into a Finance Contract (the “Finance Contract”) with the European Investment Bank (the “EIB”). 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 Finance Contract and Xylem Inc. is the Guarantor. The Finance Contract provides for up to €105 million (approximately $115 million as of October 28, 2016) to finance research, development and innovation projects in the field of sustainable water and wastewater solutions during the period from 2017 through 2019 in Sweden, Germany, Italy, UK, Hungary and Austria. The Company has unconditionally guaranteed the performance of the borrowers under the Finance Contract. Under the Finance Contract, the borrowers are able to draw loans on or before April 28, 2018, with a maturity of no longer than 11 years. The Finance Contract contains the same leverage ratio as the Credit Facility. The Finance Contract also contains limitations on, among other things, incurring debt, granting liens, and entering into sale and leaseback transactions. In addition, the Finance Contract contains other terms and conditions, such as customary representations and warranties, additional covenants and customary events of default. The Finance Contract 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 is 59 basis points (0.59%). We have not drawn any funds under the Finance Contract. Acquisitions On October 18, 2016, we acquired Visenti Pte. Ltd. (“Visenti”), a smart water analytics company focused on leak detection and pressure monitoring solutions to help water utilities manage their water networks for $8 million with additional contingent consideration of up to $4 million . Visenti, a privately-owned company headquartered in Singapore, has approximately 25

Background and Basis of Prese26

Background and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2016
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 intercompany 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, 2015 (" 2015 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 2015 Annual Report. 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 and indefinite lived intangible impairment testing and contingent liabilities. Actual results could differ from these estimates.

Recently Issued Accounting Pr27

Recently Issued Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Pronouncements Not Yet Adopted and Recently Adopted Pronouncements	Pronouncements Not Yet Adopted In October 2016, the Financial Accounting Standards Board (“FASB”) issued guidance amending the accounting for income taxes. Under current guidance the recognition of current and deferred income taxes for an intra-entity asset transfer is prohibited until the asset has been sold to an outside party. The amended guidance eliminates the prohibition against immediate recognition of current and deferred income tax amounts associated with intra-entity transfers of assets other than inventory. This guidance is effective for interim and annual periods beginning after December 15, 2017 with early adoption permitted as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued or made available for issuance. The requirements of the amended guidance should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are evaluating the impact of the guidance on our financial condition and results of operations. In June 2016, the FASB issued guidance amending the accounting for the impairment of financial instruments, including trade receivables. Under current guidance, credit losses are recognized when the applicable losses are probable of occurring and this assessment is based on past events and current conditions. The amended guidance eliminates the “probable” threshold and requires an entity to use a broader range of information, including forecast information when estimating expected credit losses. Generally, this should result in a more timely recognition of credit losses. This guidance is effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted for interim and annual periods beginning after December 15, 2018. The requirements of the amended guidance should be applied using a modified retrospective approach except for debt securities, which require a prospective transition approach. We are evaluating the impact of the guidance on our financial condition and results of operations. In February 2016, the FASB issued guidance amending the accounting for leases. Specifically, the amended guidance requires all lessees to record a lease liability at lease inception, with a corresponding right of use asset, except for short-term leases. Lessor accounting is not fundamentally changed. This amended guidance is effective for interim and annual periods beginning after December 15, 2018 using a modified retrospective approach. Early adoption is permitted. We are evaluating the impact of the guidance on our financial condition and results of operations. In July 2015, the 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 of 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 and results of operations. 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 March 2016, the FASB issued an update on accounting for share-based payments. The guidance simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification of excess tax benefits in the Condensed Consolidated Statements of Cash Flows. This standard is effective for annual reporting periods beginning after December 15, 2016. The Company elected to early adopt this standard in the quarter ended June 30, 2016 retroactively to January 1, 2016. The impact of the early adoption resulted in the following: • The Company recorded tax benefits of $1 million and $3 million within income tax expense for the three and nine months ended September 30, 2016, respectively, related to the excess tax benefit on share-based awards. Prior to adoption this amount would have been recorded as an increase of capital in excess of par value. This change could create volatility in the Company's effective tax rate. • The Company no longer reflects the cash received from the excess tax benefit within cash flows from financing activities but instead now reflects this benefit within cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. The Company elected to apply this change in presentation prospectively and thus prior periods have not been adjusted. • The Company elected not to change its policy on accounting for forfeitures and continues to estimate the total number of awards for which the requisite service period will not be rendered. • At this time, the Company has not changed its policy on statutory withholding requirements and will continue to allow the employee to withhold up to the Company's minimum statutory withholding requirements. • The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the three and nine months ended September 30, 2016. This increased diluted weighted average common shares outstanding by less than 50,000 shares for each of the aforementioned periods. In March 2016, the FASB amended the guidance regarding the use of the equity method to record certain investments. Under current guidance, if an investor increases its level of ownership interest in a company and consequently qualifies for the equity method, the investor must retroactively adjust its investment, results of operations and retained earnings to reflect balances that would have arisen if the equity method had been in effect during all previous periods that the investment was held. The amended guidance eliminates the need to retroactively adjust balances and instead allows for the prospective application of the equity method. This guidance is effective prospectively for interim and annual reporting periods beginning after December 15, 2016. We elected to early adopt this guidance effective the first quarter of 2016. The adoption of this guidance did not impact our financial condition or results of operations. In March 2016, in response to inconsistency in practice, the FASB issued guidance regarding the ability to maintain hedge accounting for a derivative instruments when one party to the instrument has been replaced by a new party (“a novation”). The new guidance states that a novation does not preclude the continued application of hedge accounting to a derivative assuming all other hedge accounting criteria continue to be met. This guidance is effective using either a prospective or a modified retrospective approach, for interim and annual reporting periods beginning after December 15, 2016. We elected to early adopt this guidance on a prospective basis effective the first quarter of 2016. The adoption of this guidance did not impact our financial condition or results of operations.

Restructuring Charges (Tables)

Restructuring Charges (Tables)	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Components of restructuring and asset impairment charges	The following table presents the components of restructuring expense. Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2016 2015 2016 2015 By component: Severance and other charges $ 6 $ 1 $ 18 $ 6 Lease related charges 1 — 1 — Reversal of restructuring accruals (1 ) — (1 ) (1 ) Total restructuring charges $ 6 $ 1 $ 18 $ 5 By segment: Water Infrastructure $ 5 $ 1 $ 12 $ 5 Applied Water 1 — 4 — Corporate and other — — 2 —
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 nine months ended September 30, 2016 and 2015 . (in millions) 2016 2015 Restructuring accruals - January 1 $ 3 $ 12 Restructuring charges 18 5 Cash payments (11 ) (11 ) Foreign currency and other (1 ) (1 ) Restructuring accruals - September 30 $ 9 $ 5 By segment: Water Infrastructure $ 4 $ 2 Applied Water — — Regional selling locations (a) 3 3 Corporate and other 2 — (a)
Planned Employee Reductions Associated with Restructuring	The following is a rollforward for the nine months ended September 30, 2016 and 2015 of employee position eliminations associated with restructuring activities. 2016 2015 Planned reductions - January 1 82 133 Additional planned reductions 364 87 Actual reductions (296 ) (120 ) Planned reductions - September 30 150 100

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net income (in millions) $ 73 $ 88 $ 210 $ 226 Shares (in thousands): Weighted average common shares outstanding 179,272 180,815 178,951 181,428 Add: Participating securities (a) 36 30 37 43 Weighted average common shares outstanding — Basic 179,308 180,845 178,988 181,471 Plus incremental shares from assumed conversions: (b) Dilutive effect of stock options 593 424 462 489 Dilutive effect of restricted stock units and performance share units 409 363 388 376 Weighted average common shares outstanding — Diluted 180,310 181,632 179,838 182,336 Basic earnings per share $ 0.41 $ 0.48 $ 1.17 $ 1.25 Diluted earnings per share $ 0.41 $ 0.48 $ 1.17 $ 1.24 (a) Restricted stock unit 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 units 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 units and performance share units, reduced by the repurchase of shares with the proceeds from the assumed exercises and unrecognized compensation expense for outstanding awards. Performance share units will be included in the treasury stock calculation of diluted earnings per share upon achievement of underlying performance or market conditions at the end of the reporting period. See Note 14 , "Share-Based Compensation Plans" to the condensed consolidated financial statements for further detail on the performance share units. Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2016 2015 2016 2015 Stock options 1,701 2,703 2,008 2,712 Restricted stock units 529 747 570 754 Performance share units 414 191 360 187

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventories	The components of total inventories are summarized as follows: (in millions) September 30, December 31, Finished goods $ 220 $ 188 Work in process 46 32 Raw materials 222 213 Total inventories $ 488 $ 433 The amounts in the above table of inventory composition as of December 31, 2015 have been revised to appropriately classify as Raw Materials $25 million

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	The components of total property, plant and equipment, net are as follows: (in millions) September 30, December 31, Land, buildings and improvements $ 247 $ 240 Machinery and equipment 649 650 Equipment held for lease or rental 225 205 Furniture and fixtures 81 79 Construction work in progress 61 46 Other 19 19 Total property, plant and equipment, gross 1,282 1,239 Less accumulated depreciation 842 800 Total property, plant and equipment, net $ 440 $ 439

Goodwill and Other Intangible32

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2016
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 nine months ended September 30, 2016 are as follows: (in millions) Water Infrastructure Applied Water Total Balance as of January 1, 2016 $ 1,066 $ 518 $ 1,584 Activity in 2016 Acquired (a) 39 — 39 Foreign currency and other (2 ) (2 ) Balance as of September 30, 2016 $ 1,103 $ 518 $ 1,621 (a) On February 1, 2016, we acquired Tideland and recorded $39 million
Other Intangible Assets	Information regarding our other intangible assets is as follows: September 30, 2016 December 31, 2015 (in millions) Carrying Amount Accumulated Amortization Net Intangibles Carrying Amount Accumulated Amortization Net Intangibles Customer and distributor relationships $ 342 $ (159 ) $ 183 $ 320 $ (140 ) $ 180 Proprietary technology and patents 119 (60 ) 59 116 (54 ) 62 Trademarks 43 (22 ) 21 35 (19 ) 16 Software 168 (119 ) 49 155 (110 ) 45 Other 7 (7 ) — 8 (8 ) — Indefinite-lived intangibles 132 — 132 132 — 132 $ 811 $ (367 ) $ 444 $ 766 $ (331 ) $ 435

Derivative Financial Instrume33

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2016
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 Nine Months Ended September 30, September 30, (in millions) 2016 2015 2016 2015 Cash Flow Hedges Foreign Exchange Contracts Amount of (loss) recognized in OCI (a) $ — $ — $ — $ (5 ) Amount of (gain) loss reclassified from OCI into revenue (a) (1 ) 5 (1 ) 16 Amount of (gain) loss reclassified from OCI into cost of revenue (a) — — (1 ) 1 Net Investment Hedges Cross Currency Swaps Amount of (loss) recognized in OCI (a) $ (7 ) $ — $ (7 ) $ — Foreign Currency Denominated Debt Amount of (loss) recognized in OCI (a) $ (5 ) $ — $ (10 ) $ — (a)
Fair values of foreign exchange contracts	The fair values of our foreign exchange contracts currently included in our hedging program designated as hedging instruments were as follows: (in millions) September 30, December 31, Derivatives designated as hedging instruments Assets Cash Flow Hedges Other current assets $ — $ 2 Liabilities Cash Flow Hedges Other current liabilities $ (1 ) $ — Net Investment Hedges Other non-current liabilities $ (30 ) $ (18 )

Accrued and Other Current Lia34

Accrued and Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
Accrued and Other Current Liabilities	The components of total accrued and other current liabilities are as follows: (in millions) September 30, December 31, Compensation and other employee benefits $ 163 $ 156 Customer-related liabilities 70 64 Accrued warranty costs 35 33 Accrued taxes 67 64 Other accrued liabilities 103 90 Total accrued and other current liabilities $ 438 $ 407

Credit Facilities and Debt (Tab

Credit Facilities and Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of Credit Facilities and Long-Term Debt	Total debt outstanding is summarized as follows: (in millions) September 30, December 31, 3.550% Senior Notes due 2016 $ — $ 600 4.875% Senior Notes due 2021 (a) 600 600 2.250% Senior Notes due 2023 (a) 560 — Commercial paper 20 — Research and development facility agreement 42 76 Other — 2 Debt issuance costs and unamortized discount (b) (12 ) (4 ) Total debt 1,210 1,274 Less: short-term borrowings and current maturities of long-term debt 62 78 Total long-term debt $ 1,148 $ 1,196 (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 2021 was $654 million and $640 million as of September 30, 2016 and December 31, 2015 , respectively. The fair value of our Senior Notes due 2023 was $608 million as of September 30, 2016 . (b)

Postretirement Benefit Plans (T

Postretirement Benefit Plans (Tables)	9 Months Ended
	Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Components of net periodic benefit cost and other amounts recognized in other comprehensive income	Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2016 2015 2016 2015 Domestic defined benefit pension plans: Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 1 1 3 3 Expected return on plan assets (2 ) (2 ) (4 ) (4 ) Amortization of net actuarial loss 1 1 2 2 Net periodic benefit cost $ 1 $ 1 $ 3 $ 3 International defined benefit pension plans: Service cost $ 3 $ 3 $ 8 $ 9 Interest cost 6 6 18 18 Expected return on plan assets (8 ) (8 ) (25 ) (25 ) Amortization of net actuarial loss 2 3 6 10 Net periodic benefit cost $ 3 $ 4 $ 7 $ 12 Total net periodic benefit cost $ 4 $ 5 $ 10 $ 15

Share-Based Compensation Plans

Share-Based Compensation Plans (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of restricted stock activity	The following is a summary of restricted stock units activity for the nine months ended September 30, 2016 . The fair value of the restricted stock units is equal to the closing share price on the date of the grant. Shares (in thousands) Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2016 1,013 $ 34.52 Granted 300 38.99 Vested (291 ) 29.61 Forfeited (75 ) 36.75 Outstanding at September 30, 2016 947 $ 37.27
Summary of performance based share grants	The following is a summary of Return on Invested Capital ("ROIC") performance share unit grants for the nine months ended September 30, 2016 . The fair value of the ROIC performance share units is equal to the closing share price on the date of the grant. Shares (in thousands) Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2016 160 $ 35.48 Granted 111 37.87 Vested — — Forfeited (20 ) 28.31 Outstanding at September 30, 2016 251 $ 37.09 TSR Performance Share Units Grants The following is a summary of our Total Shareholder Return ("TSR") performance share unit grants for the nine months ended September 30, 2016 . Shares (in thousands) Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2016 — $ — Granted 111 46.13 Vested — — Forfeited (2 ) 45.34 Outstanding at September 30, 2016 109 $ 46.14
Summary of the changes in outstanding stock options	The following is a summary of the changes in outstanding stock options for the nine months ended September 30, 2016 . Shares (in thousands) Weighted Average Exercise Price / Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding at January 1, 2016 2,561 $ 31.16 6.8 Granted 463 37.90 Exercised (797 ) 27.91 Forfeited and expired (44 ) 35.55 Outstanding at September 30, 2016 2,183 $ 33.68 7.2 $ 41 Options exercisable at September 30, 2016 1,222 $ 29.40 5.9 $ 26 Vested and expected to vest as of September 30, 2016 2,098 $ 33.53 7.1 $ 40
Stock option valuation assumptions	The following are weighted-average assumptions for 2016 grants. Volatility 28.87 % Risk-free interest rate 1.41 % Dividend yield 1.63 % Expected term (in years) 5.6 Weighted-average fair value / share $ 9.05
Performance-based shares valuation assumptions	The fair value of TSR performance share units was calculated on the date of grant using a Monte Carlo simulation model utilizing several key assumptions, including expected Company and peer company share price volatility, correlation coefficients between peers, the risk-free rate of return, the expected dividend yield and other award design features. The following are weighted-average assumptions for 2016 grants. Volatility 31.7 % Risk-free interest rate 0.88 % Dividend yield 1.64 %

Accumulated Other Comprehensi38

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table provides the components of accumulated other comprehensive income (loss) for the nine months ended September 30, 2016 : (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at January 1, 2016 $ (43 ) $ (185 ) $ (10 ) $ (238 ) Foreign currency translation adjustment (25 ) — — (25 ) Tax on foreign currency translation adjustment 6 — — 6 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 — (4 ) — (4 ) Reclassification of unrealized gain on derivative hedge agreements into cost of revenue — — (1 ) (1 ) Reclassification of unrealized gain on derivative hedge agreements into revenue — — (1 ) (1 ) Reclassification of unrealized loss on net investment hedge (11 ) — 11 — Balance at September 30, 2016 $ (73 ) $ (181 ) $ (1 ) $ (255 )

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2016
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) 2016 2015 Warranty accrual – January 1 $ 33 $ 31 Net charges for product warranties in the period 20 21 Settlement of warranty claims (21 ) (21 ) Foreign currency and other 3 — Warranty accrual - September 30 $ 35 $ 31

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2016
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 2015 Annual Report). The following tables contain financial information for each reportable segment: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2016 2015 2016 2015 Revenue: Water Infrastructure $ 554 $ 551 $ 1,634 $ 1,602 Applied Water 343 351 1,042 1,057 Total $ 897 $ 902 $ 2,676 $ 2,659 Operating Income: Water Infrastructure $ 79 $ 83 $ 203 $ 195 Applied Water 50 46 140 143 Corporate and other (20 ) (9 ) (46 ) (31 ) Total $ 109 $ 120 $ 297 $ 307 Depreciation and Amortization: Water Infrastructure $ 22 $ 22 $ 65 $ 70 Applied Water 6 7 18 19 Regional selling locations (a) 2 3 8 8 Corporate and other 2 1 6 5 Total $ 32 $ 33 $ 97 $ 102 Capital Expenditures: Water Infrastructure $ 19 $ 12 $ 53 $ 49 Applied Water 4 5 15 15 Regional selling locations (b) 4 3 19 9 Corporate and other 1 1 3 5 Total $ 28 $ 21 $ 90 $ 78 (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)
Total assets for each reportable segment	The following table contains the total assets for each reportable segment: (in millions) September 30, December 31, Water Infrastructure $ 2,107 $ 2,024 Applied Water 1,042 1,054 Regional selling location (a) 1,021 905 Corporate and other (b) 608 674 Total $ 4,778 $ 4,657 (a) The Regional selling locations have assets that consist primarily of cash, accounts receivable and inventory which are not allocated to the segments. (b)

Background and Basis of Prese41

Background and Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2016
Background and Basis of Presentation (Textual) [Abstract]
Number of operating segment	2

Recently Issued Accounting Pr42

Recently Issued Accounting Pronouncements (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Accounting Policies [Abstract]
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options	$ 1	$ 3
Weighted Average Number of Shares, Treasury Stock (less than)		50,000

Acquisitions and Divestitures (

Acquisitions and Divestitures (Textuals) (Details) $ in Millions	Oct. 31, 2016USD ($)locationemployeecontinent	Oct. 18, 2016USD ($)employee	Feb. 01, 2016USD ($)employee	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)business	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)business
Business Acquisition [Line Items]
Number of businesses divested | business					0		2
Proceeds from sale of businesses						$ 0	$ 1
Gain from sale of businesses				$ 0	$ 0	$ 0	$ 9
Tideland
Business Acquisition [Line Items]
Acquisition price			$ 70
Number of employees | employee			160
Subsequent Event
Business Acquisition [Line Items]
Acquisition price		$ 8
Number of employees | employee		25
Subsequent Event | Sensus
Business Acquisition [Line Items]
Acquisition price	$ 1,700
Number of employees | employee	3,300
Number of locations | location	28
Number of continents | continent	6

Restructuring Charges (Restruct

Restructuring Charges (Restructuring Charges) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Restructuring Cost and Impairment Charge
Severance and other charges	$ 6	$ 1	$ 18	$ 6
Lease related charges	1	0	1	0
Reversal of restructuring accruals	(1)	0	(1)	(1)
Restructuring charges	6	1	18	5
Water Infrastructure
Restructuring Cost and Impairment Charge
Restructuring charges	5	1	12	5
Applied Water
Restructuring Cost and Impairment Charge
Restructuring charges	1	0	4	0
Corporate Segment
Restructuring Cost and Impairment Charge
Restructuring charges	$ 0	$ 0	$ 2	$ 0

Restructuring Charges (Accrual

Restructuring Charges (Accrual Rollfoward) (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Restructuring Reserve [Roll Forward]
Restructuring accruals - January 1				$ 3	$ 12
Restructuring charges		$ 6	$ 1	18	5
Cash payments				(11)	(11)
Foreign currency and other				(1)	(1)
Restructuring accruals - September 30		9	5	9	5
Water Infrastructure
Restructuring Reserve [Roll Forward]
Restructuring charges		5	1	12	5
Restructuring accruals - September 30		4	2	4	2
Applied Water
Restructuring Reserve [Roll Forward]
Restructuring charges		1	0	4	0
Restructuring accruals - September 30		0	0	0	0
Regional Selling Locations
Restructuring Reserve [Roll Forward]
Restructuring accruals - September 30	[1]	3	3	3	3
Corporate Segment
Restructuring Reserve [Roll Forward]
Restructuring charges		0	0	2	0
Restructuring accruals - September 30		$ 2	$ 0	$ 2	$ 0
[1]	(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.

Restructuring Charges (Number o

Restructuring Charges (Number of Positions Eliminated Rollfoward) (Details) - employee	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Restructuring and Related Cost, Number of Positions Eliminated [Roll Forward]
Planned reductions - January 1	82	133
Additional planned reductions	364	87
Actual reductions	(296)	(120)
Planned reductions - September 30	150	100

Restructuring Charges (Textuals

Restructuring Charges (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 6	$ 1	$ 18	$ 5
Water Infrastructure
Restructuring Cost and Reserve [Line Items]
Restructuring charges	5	1	12	5
Applied Water
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1	0	4	0
Corporate
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	$ 0	2	$ 0
2016 Plan | Water Infrastructure
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost	20		20
Restructuring and related cost, incurred cost			11
2016 Plan | Applied Water
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost	6		6
Restructuring and related cost, incurred cost			4
2016 Plan | Corporate
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost	$ 2		2
2015 Plan | Water Infrastructure
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost					$ 5
Restructuring and related cost, incurred cost			$ 1		4
2015 Plan | Applied Water
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost					$ 1

Income Taxes (Textuals) (Detail

Income Taxes (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Taxes (Textual) [Abstract]
Income tax provision	$ 22	$ 19	$ 40	$ 49
Effective tax rate	22.90%	17.40%	16.00%	17.60%
Unrecognized tax benefits	$ 27		$ 27
Reduction in unrecognized tax benefits			20
Interest accrued for unrecognized tax benefits	$ 2		$ 2

Earnings Per Share (Calculation

Earnings Per Share (Calculations for EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Basic and diluted net earnings per share:
Net income (in usd)		$ 73	$ 88	$ 210	$ 226
Shares
Weighted average common shares outstanding		179,272	180,815	178,951	181,428
Add: Participating securities	[1]	36	30	37	43
Weighted average common shares outstanding — Basic		179,308	180,845	178,988	181,471
Plus incremental shares from assumed conversions:
Weighted average common shares outstanding — Diluted		180,310	181,632	179,838	182,336
Basic earnings per share (usd per share)		$ 0.41	$ 0.48	$ 1.17	$ 1.25
Diluted earnings per share (usd per share)		$ 0.41	$ 0.48	$ 1.17	$ 1.24
Stock Options
Plus incremental shares from assumed conversions:
Dilutive effect of common shares	[2]	593	424	462	489
Restricted Stock
Plus incremental shares from assumed conversions:
Dilutive effect of common shares	[2]	409	363	388	376
[1]	Restricted stock unit 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 units 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 units and performance share units, reduced by the repurchase of shares with the proceeds from the assumed exercises and unrecognized compensation expense for outstanding awards. Performance share units will be included in the treasury stock calculation of diluted earnings per share upon achievement of underlying performance or market conditions at the end of the reporting period. See Note 14, "Share-Based Compensation Plans" to the condensed consolidated financial statements for further detail on the performance share units.

Earnings Per Share (Summary of

Earnings Per Share (Summary of Antidilutive Securities) (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Stock Options
Incremental shares from stock options and restricted stock:
Antidilutive securities (in shares)	1,701	2,703	2,008	2,712
Restricted Stock
Incremental shares from stock options and restricted stock:
Antidilutive securities (in shares)	529	747	570	754
Performance Based Shares
Incremental shares from stock options and restricted stock:
Antidilutive securities (in shares)	414	191	360	187

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Inventories
Finished goods	$ 220	$ 188
Work in process	46	32
Raw materials	222	213
Total inventories	$ 488	$ 433

Property, Plant and Equipment52

Property, Plant and Equipment (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment
Property, plant and equipment, gross	$ 1,282	$ 1,239
Less accumulated depreciation	842	800
Total property, plant and equipment, net	440	439
Land, buildings and improvements
Property, Plant and Equipment
Property, plant and equipment, gross	247	240
Machinery and equipment
Property, Plant and Equipment
Property, plant and equipment, gross	649	650
Equipment held for lease or rental
Property, Plant and Equipment
Property, plant and equipment, gross	225	205
Furniture and fixtures
Property, Plant and Equipment
Property, plant and equipment, gross	81	79
Construction work in progress
Property, Plant and Equipment
Property, plant and equipment, gross	61	46
Other
Property, Plant and Equipment
Property, plant and equipment, gross	$ 19	$ 19

Property, Plant and Equipment53

Property, Plant and Equipment (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Property Plant And Equipment (Textual) [Abstract]
Depreciation expense	$ 20	$ 22	$ 61	$ 69

Goodwill and Other Intangible54

Goodwill and Other Intangible Assets (Goodwill Rollforward) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2016	$ 1,584
Acquired	39	[1]
Foreign currency and other	(2)
Balance as of September 30, 2016	1,621
Water Infrastructure
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2016	1,066
Acquired	39	[1]
Foreign currency and other	(2)
Balance as of September 30, 2016	1,103
Applied Water
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2016	518
Acquired	0	[1]
Foreign currency and other
Balance as of September 30, 2016	$ 518
[1]	On February 1, 2016, we acquired Tideland and recorded $39 million of goodwill. Refer to Note 3, "Acquisitions and Divestitures" for additional information.

Goodwill and Other Intangible55

Goodwill and Other Intangible Assets (Summary of Intangible Assets) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Goodwill and Other Intangible Assets
Accumulated Amortization	$ (367)		$ (367)		$ (331)
Intangible Assets Gross, Carrying Amount	811		811		766
Intangible Assets, Net Intangibles	444		444		435
Amortization	12	$ 11	36	$ 33
Customer and distributor relationships
Goodwill and Other Intangible Assets
Carrying Amount	342		342		320
Accumulated Amortization	(159)		(159)		(140)
Net Intangibles	183		183		180
Proprietary technology and patents
Goodwill and Other Intangible Assets
Carrying Amount	119		119		116
Accumulated Amortization	(60)		(60)		(54)
Net Intangibles	59		59		62
Trademarks
Goodwill and Other Intangible Assets
Carrying Amount	43		43		35
Accumulated Amortization	(22)		(22)		(19)
Net Intangibles	21		21		16
Software
Goodwill and Other Intangible Assets
Carrying Amount	168		168		155
Accumulated Amortization	(119)		(119)		(110)
Net Intangibles	49		49		45
Other
Goodwill and Other Intangible Assets
Carrying Amount	7		7		8
Accumulated Amortization	(7)		(7)		(8)
Net Intangibles	0		0		0
Indefinite-lived intangibles
Goodwill and Other Intangible Assets
Accumulated Amortization	0		0		0
Indefinite-lived intangibles	$ 132		$ 132		$ 132

Goodwill and Other Intangible56

Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense related to finite-lived intangible assets	$ 12	$ 11	$ 36	$ 33

Derivative Financial Instrume57

Derivative Financial Instruments (Effect of Deriative Instruments on Income Statement and Statement of Comprehensive Income) (Details) - USD ($) $ in Millions		3 Months Ended				9 Months Ended
		Sep. 30, 2016		Sep. 30, 2015		Sep. 30, 2016	Sep. 30, 2015
Derivative Financial Instruments
Amount of (loss) recognized in OCI (a)		$ 0		$ 0		$ 0	$ 5
Reclassification out of Accumulated Other Comprehensive Income | Foreign Exchange Contract
Derivative Financial Instruments
Amount of (gain) loss reclassified from OCI into revenue (a)	[1]	(1)		5		(1)	16
Amount of (gain) loss reclassified from OCI into cost of revenue (a)	[1]	0		0		(1)	1
Cash Flow Hedging [Member] | Foreign Exchange Contract
Derivative Financial Instruments
Amount of (loss) recognized in OCI (a)	[1]	0		0		0	(5)
Cash Flow Hedging [Member] | Cross Currency Swaps
Derivative Financial Instruments
Amount of (loss) recognized in OCI (a)		(7)	[1]	0	[1]	7	0	[1]
Cash Flow Hedging [Member] | Foreign Currency Denominated Debt
Derivative Financial Instruments
Amount of (loss) recognized in OCI (a)	[1]	$ (5)		$ 0		$ (10)	$ 0
[1]	Effective portion

Derivative Financial Instrume58

Derivative Financial Instruments (Balance Sheet Location of Derivative Instruments) (Details) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2016		Sep. 30, 2015		Sep. 30, 2016	Sep. 30, 2015		Dec. 31, 2015
Derivatives, Fair Value
Unrealized losses	$ 0		$ 0		$ 0	$ (5)
Other current assets | Derivatives designated as hedging instruments
Derivatives, Fair Value
Assets	0				0			$ 2
Other current liabilities | Derivatives designated as hedging instruments
Derivatives, Fair Value
Other current liabilities	(1)				(1)			0
Other non-current liabilities | Derivatives designated as hedging instruments
Derivatives, Fair Value
Net Investment Hedges	(30)				(30)			$ (18)
Long-term debt | Derivatives designated as hedging instruments
Derivatives, Fair Value
Net Investment Hedges	555				555
Cross Currency Swaps | Cash Flow Hedging [Member]
Derivatives, Fair Value
Unrealized losses	$ 7	[1]	$ 0	[1]	$ (7)	$ 0	[1]
[1]	Effective portion

Derivative Financial Instrume59

Derivative Financial Instruments (Details Textual) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Mar. 11, 2016EUR (€)	Dec. 31, 2015USD ($)
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		$ 21		$ 21			$ 94
Sell EUR Buy SEK
Derivative Financial Instruments (Textual) [Abstract]
Notional amount							51
Sell USD Buy EUR
Derivative Financial Instruments (Textual) [Abstract]
Notional amount							24
Sell GBP Buy EUR
Derivative Financial Instruments (Textual) [Abstract]
Notional amount							12
Derivatives designated as hedging instruments | Sell EUR Buy SEK
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		14		14
Derivatives designated as hedging instruments | Sell USD Buy EUR
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		336		336
Derivatives designated as hedging instruments | Sell CAD Buy USD
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		2		2
Derivatives designated as hedging instruments | Sell CAD Buy EUR
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		2		2
Derivatives designated as hedging instruments | Sell EUR Buy PLN
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		2		2
Derivatives designated as hedging instruments | Cross Currency Swaps
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		419		419			$ 411
Long-term debt | Derivatives designated as hedging instruments
Derivative Financial Instruments (Textual) [Abstract]
Net Investment Hedges		555		555
Senior Notes Due 2023, 2.250%
Derivative [Line Items]
Long-term Debt, Fair Value		608		608
Senior Notes Due 2023, 2.250% | Senior Notes
Derivative Financial Instruments (Textual) [Abstract]
Interest on notes due						2.25%
Face amount | €						€ 500,000,000
Reclassification out of Accumulated Other Comprehensive Income | Foreign Exchange Contract
Derivative [Line Items]
Revenues	[1]	$ 1	$ (5)	$ 1	$ (16)
[1]	Effective portion

Accrued and Other Current Lia60

Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Accrued and Other Current Liabilities
Compensation and other employee benefits	$ 163	$ 156
Customer-related liabilities	70	64
Accrued warranty costs	35	33
Accrued taxes	67	64
Other accrued liabilities	103	90
Total accrued and other current liabilities	$ 438	$ 407

Credit Facilities and Debt (Sum

Credit Facilities and Debt (Summary of Debt Outstanding) (Details) - USD ($) $ in Millions		Sep. 30, 2016		Dec. 31, 2015		Sep. 20, 2011
Credit Facilities and Long-Term Debt :
Debt issuance costs and unamortized discount		$ (12)		$ (4)
Long-term debt		1,148		1,196
Total debt		1,210		1,274
Commercial Paper, at Carrying Value		20		0
Commercial Paper		600
Other		0		2
Short-term borrowings and current maturities of long-term debt		62		78
Senior Notes Due 2016, 3.550%
Credit Facilities and Long-Term Debt :
Senior Notes Due		0	[1]	600	[1]	$ 600
Senior Notes Due 2021, 4.875%
Credit Facilities and Long-Term Debt :
Senior Notes Due		600	[1]	600	[1]	$ 600
Senior Notes Due 2023, 2.250%
Credit Facilities and Long-Term Debt :
Senior Notes Due	[1]	560		0
Risk Sharing Finance Facility Agreement
Credit Facilities and Long-Term Debt :
Research and development facility agreement		$ 42		$ 76
[1]	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 2021 was $654 million and $640 million as of September 30, 2016 and December 31, 2015, respectively. The fair value of our Senior Notes due 2023 was $608 million as of September 30, 2016.

Credit Facilities and Debt (Tex

Credit Facilities and Debt (Textuals) (Details)

Apr. 11, 2016USD ($)

Mar. 27, 2015USD ($)

Sep. 20, 2011USD ($)

Sep. 30, 2016USD ($)

Aug. 15, 2016USD ($)

Mar. 11, 2016EUR (€)

Dec. 31, 2015USD ($)

Dec. 03, 2015USD ($)

Dec. 03, 2015EUR (€)

Debt Instrument

Bridge Loan

$ 1,300,000,000

Commercial paper outstanding

$ 20,000,000

$ 0

Commercial paper face amount

$ 600,000,000

Weighted average interest rate

0.75%

Letter of Credit

Debt Instrument

Debt instrument aggregate principal amount

$ 100,000,000

Revolving Credit Facility

Debt Instrument

Term of debt

5 years

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

4

Maximum leverage ratio subsequent

3.5

Risk Sharing Finance Facility Agreement

Debt Instrument

Research and development facility agreement

$ 42,000,000

76,000,000

Senior Notes

Debt Instrument

Redemption price percentage

101.00%

Senior Notes Due 2016, 3.550%

Debt Instrument

Interest on notes due

3.55%

Senior Notes Due

$ 600,000,000

0

[1]

600,000,000

[1]

Settlement of debt

$ 607,000,000

Settlement of debt, interest amount

7,000,000

Senior Notes Due 2021, 4.875%

Debt Instrument

Fair value of senior notes due

654,000,000

640,000,000

Interest on notes due

4.875%

Senior Notes Due

$ 600,000,000

600,000,000

[1]

600,000,000

[1]

Senior Notes Due 2023, 2.250%

Debt Instrument

Fair value of senior notes due

608,000,000

Senior Notes Due

[1]

$ 560,000,000

$ 0

Senior Notes Due 2023, 2.250% | Senior Notes

Debt Instrument

Interest on notes due

2.25%

Face amount | €

€ 500,000,000

Risk Sharing Finance Facility Agreement

Debt Instrument

Face amount

$ 135,000,000

€ 120,000,000

Maximum leverage ratio

3.50

Risk Sharing Finance Facility Agreement | Loans payable

Debt Instrument

Term of debt

12 years

[1]

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 2021 was $654 million and $640 million as of September 30, 2016 and December 31, 2015, respectively. The fair value of our Senior Notes due 2023 was $608 million as of September 30, 2016.

Postretirement Benefit Plans (S

Postretirement Benefit Plans (Summary of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net periodic benefit cost:
Amortization of net actuarial loss	$ 1	$ 1	$ 1	$ 1
Net periodic benefit cost	4	5	10	15
Domestic defined benefit pension plans
Net periodic benefit cost:
Service cost	1	1	2	2
Interest cost	1	1	3	3
Expected return on plan assets	(2)	(2)	(4)	(4)
Amortization of net actuarial loss	1	1	2	2
Net periodic benefit cost	1	1	3	3
International defined benefit pension plans
Net periodic benefit cost:
Service cost	3	3	8	9
Interest cost	6	6	18	18
Expected return on plan assets	(8)	(8)	(25)	(25)
Amortization of net actuarial loss	2	3	6	10
Net periodic benefit cost	$ 3	$ 4	$ 7	$ 12

Postretirement Benefit Plans 64

Postretirement Benefit Plans (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Other postretirement benefit expense	$ 1	$ 1	$ 2	$ 3
Amortization of net actuarial loss (less than $1 million)	$ 1	$ 1	1	1
Employer contribution to defined benefit plan			22	$ 21
Minimum
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Additional contributions			6
Maximum
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Additional contributions			$ 10

Share-Based Compensation Plan65

Share-Based Compensation Plans (Textuals) (Details) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation	$ 5	$ 3	$ 15	$ 11
Shares Awarded (in shares)			463
Stock-Based Compensation Plans (Textual) [Abstract]
Amount of cash received from the exercise of stock options			$ 22	$ 14
Aggregate intrinsic value of outstanding stock options	41		41
Aggregate intrinsic value of exercisable stock options	26		26
Total intrinsic value of options exercised			12
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Unamortized compensation expense	6		$ 6
Weighted average period			1 year 10 months 24 days
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Unamortized compensation expense	19		$ 19
Weighted average period			1 year 9 months 18 days
Shares Awarded (in shares)			300
Performance Based Shares
Share-based Compensation Arrangement by Share-based Payment Award
Unamortized compensation expense	$ 10		$ 10
Weighted average period			2 years 2 months 12 days

Share-Based Compensation Plan66

Share-Based Compensation Plans (Summary of Stock Options Grant) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Summary of the changes in outstanding stock options
Outstanding, beginning of period (in shares)	2,561
Granted (in shares)	463
Exercised (in shares)	(797)
Forfeited (in shares)	(44)
Outstanding, end of period (in shares)	2,183	2,561
Options exercisable, ending of period (in shares)	1,222
Vested and expected, end of period (in shares)	2,098
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)	$ 31.16
Granted (in usd per share)	37.90
Exercised (in usd per share)	27.91
Forfeited (in usd per share)	35.55
Outstanding, end of period (in usd per share)	33.68	$ 31.16
Options exercisable, end of period (in usd per share)	29.40
Vested and expected, end of period (in usd per share)	$ 33.53
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted Average Remaining Contractual Term [Roll Forward]
Outstanding, weighted average remaining contractual term	7 years 2 months 12 days	6 years 9 months 18 days
Aggregate intrinsic value of outstanding stock options	$ 41
Options exercisable, end of period	5 years 10 months 24 days
Aggregate intrinsic value of exercisable stock options	$ 26
Vested and expected to vest, end of period	7 years 1 month 6 days
Aggregate intrinsic value, vested and expected to vest	$ 40

Share-Based Compensation Plan67

Share-Based Compensation Plans (Stock Option Fair Value Assumptions) (Details) - Stock Options	9 Months Ended
	Sep. 30, 2016$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility	28.87%
Risk-free interest rate	1.41%
Dividend yield	1.63%
Expected term (in years)	5 years 7 months 6 days
Weighted-average fair value / share (in usd per share)	$ 9.05

Share-Based Compensation Plan68

Share-Based Compensation Plans (Summary of Restricted Stock Unit Grants) (Details) - Restricted Stock [Member] shares in Thousands	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Summary of restricted stock activity
Outstanding, beginning of period (in shares) | shares	1,013
Granted (in shares) | shares	300
Vested (in shares) | shares	(291)
Forfeited (in shares) | shares	(75)
Outstanding, end of period (in shares) | shares	947
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding, beginning of period (in usd per share) | $ / shares	$ 34.52
Granted (in usd per share) | $ / shares	38.99
Vested (in usd per share) | $ / shares	29.61
Forfeited (in usd per share) | $ / shares	36.75
Outstanding, end of period (in usd per share) | $ / shares	$ 37.27

Share-Based Compensation Plan69

Share-Based Compensation Plans Share-Based Compensation Plans (Summary of ROIC Performance Share Unit Grants) (Details) - Return on Invested Capital Performance-Based Shares [Member] - Performance Based Shares shares in Thousands	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Summary of performance share activity
Outstanding, beginning of period (in shares) | shares	160
Granted (in shares) | shares	111
Vested (in shares) | shares	0
Forfeited (in shares) | shares	(20)
Outstanding, end of period (in shares) | shares	251
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding, beginning of period (in usd per share) | $ / shares	$ 35.48
Granted (in usd per share) | $ / shares	37.87
Vested (in usd per share) | $ / shares	0
Forfeited (in usd per share) | $ / shares	28.31
Outstanding, end of period (in usd per share) | $ / shares	$ 37.09

Share-Based Compensation Plan70

Share-Based Compensation Plans (Summary of Performance-Based Share Grants) (Details) - Total Shareholder Return Performance-Based Shares - Performance Based Shares shares in Thousands	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Summary of performance share activity
Outstanding, beginning of period (in shares) | shares	0
Granted (in shares) | shares	111
Vested (in shares) | shares	0
Forfeited (in shares) | shares	(2)
Outstanding, end of period (in shares) | shares	109
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding, beginning of period (in usd per share) | $ / shares	$ 0
Granted (in usd per share) | $ / shares	46.13
Vested (in usd per share) | $ / shares	0
Forfeited (in usd per share) | $ / shares	45.34
Outstanding, end of period (in usd per share) | $ / shares	$ 46.14

Share-Based Compensation Plan71

Share-Based Compensation Plans (TSR Performance-Based Shares Fair Value Assumptions) (Details) - Total Shareholder Return Performance-Based Shares - Performance Based Shares shares in Thousands	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | shares	(2)
Volatility	31.70%
Risk-free interest rate	0.88%
Dividend yield	1.64%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares	$ 45.34

Capital Stock (Textuals) (Detai

Capital Stock (Textuals) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Aug. 24, 2015	Aug. 20, 2013	Aug. 18, 2012
Equity, Class of Treasury Stock [Line Items]
Shares repurchased (in shares - less than 0.1 million)	100,000	100,000	100,000	100,000
Shares repurchased (less than $1 million)	$ 1,000,000	$ 1,000,000	$ 3,000,000
2015 Stock Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount					$ 500,000,000
Remaining authorized amount of repurchase	$ 420,000,000		$ 420,000,000
2013 Stock Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount						$ 250,000,000
Shares repurchased (in shares - less than 0.1 million)	600,000			2,000,000
Shares repurchased (less than $1 million)	$ 20,000,000			$ 70,000,000
2012 Stock Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount							$ 2,000,000
Shares repurchased (in shares - less than 0.1 million)	0	800,000	0	800,000
Shares repurchased (less than $1 million)	$ 0	$ 25,000,000	$ 0	$ 25,000,000
Remaining authorized number of shares to be repurchased (in shares)	300,000		300,000
Remaining authorized amount of repurchase	$ 13,000,000		$ 13,000,000

Accumulated Other Comprehensi73

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			$ (238)
Foreign currency translation adjustment	$ (8)	$ (39)	(25)	$ (142)
Foreign currency gain reclassified into gain on sale of businesses	0	$ 0	0	$ (8)
Ending balance	(255)		(255)
Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(252)		(238)
Foreign currency translation adjustment	(8)		(25)
Foreign currency gain reclassified into gain on sale of businesses	4		6
Income tax expense on amortization of postretirement benefit plan items	(1)		(4)
Ending balance	(255)		(255)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(69)		(43)
Foreign currency translation adjustment	(8)		(25)
Foreign currency gain reclassified into gain on sale of businesses	4		6
Income tax expense on amortization of postretirement benefit plan items	0		0
Ending balance	(73)		(73)
Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(183)		(185)
Foreign currency translation adjustment	0		0
Foreign currency gain reclassified into gain on sale of businesses	0		0
Income tax expense on amortization of postretirement benefit plan items	(1)		(4)
Ending balance	(181)		(181)
Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	0		(10)
Foreign currency translation adjustment	0		0
Foreign currency gain reclassified into gain on sale of businesses	0		0
Income tax expense on amortization of postretirement benefit plan items	0		0
Ending balance	(1)		(1)
Other Expense [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	1		1
Other Expense [Member] | Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	0		0
Other Expense [Member] | Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	1		1
Other Expense [Member] | Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	0		0
Cost of revenue | Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:			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
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:			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
Reclassification of unrealized gain (loss) on foreign exchange agreements			(1)
Selling, general and administrative expenses | Total
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
Revenue | Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements	(1)
Revenue | Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements	0
Revenue | Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements	0
Revenue | Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements	$ (1)		(1)
Cross Currency Swaps | Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements			0
Cross Currency Swaps | Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements			(11)
Cross Currency Swaps | Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements			0
Cross Currency Swaps | Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements			$ 11

Commitments and Contingencies74

Commitments and Contingencies (Summary of Warranties) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Warranties
Warranty accrual – January 1	$ 33	$ 31
Net charges for product warranties in the period	20	21
Settlement of warranty claims	(21)	(21)
Foreign currency and other	3	0
Warranty accrual - September 30	$ 35	$ 31

Commitments and Contingencies75

Commitments and Contingencies (Details Textual) € in Millions, $ in Millions	Feb. 17, 2009EUR (€)	Sep. 30, 2016USD ($)	Dec. 31, 2015USD ($)
Loss Contingencies [Line Items]
Guarantee amounts		$ 177	$ 161
Estimated environmental matters		$ 4	$ 4
Judicial Ruling
Loss Contingencies [Line Items]
Fines assessed | €	€ 2.4

Segment Information (Summary of

Segment Information (Summary of Operations by Segment) (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Financial information for each reportable segment
Revenue		$ 897	$ 902	$ 2,676	$ 2,659
Operating income		109	120	297	307
Depreciation and amortization		32	33	97	102
Capital expenditures		28	21	90	78
Water Infrastructure
Financial information for each reportable segment
Revenue		554	551	1,634	1,602
Operating income		79	83	203	195
Depreciation and amortization		22	22	65	70
Capital expenditures		19	12	53	49
Applied Water
Financial information for each reportable segment
Revenue		343	351	1,042	1,057
Operating income		50	46	140	143
Depreciation and amortization		6	7	18	19
Capital expenditures		4	5	15	15
Regional Selling Locations
Financial information for each reportable segment
Depreciation and amortization	[1]	2	3	8	8
Capital expenditures	[2]	4	3	19	9
Corporate and other
Financial information for each reportable segment
Operating income		(20)	(9)	(46)	(31)
Depreciation and amortization		2	1	6	5
Capital expenditures		$ 1	$ 1	$ 3	$ 5
[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 (Summary 77

Segment Information (Summary of Assets by Segment) (Details) - USD ($) $ in Millions		Sep. 30, 2016	Dec. 31, 2015
Total assets for each reportable segment
Total assets		$ 4,778	$ 4,657
Water Infrastructure
Total assets for each reportable segment
Total assets		2,107	2,024
Applied Water
Total assets for each reportable segment
Total assets		1,042	1,054
Regional Selling Locations
Total assets for each reportable segment
Total assets	[1]	1,021	905
Corporate and other
Total assets for each reportable segment
Total assets	[2]	$ 608	$ 674
[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 (Textuals)

Segment Information (Textuals) (Details)	9 Months Ended
	Sep. 30, 2016Segment
Segment Information (Textual) [Abstract]
Number of reportable segments	2

Subsequent Events (Textuals) (D

Subsequent Events (Textuals) (Details) - Subsequent Event	Oct. 28, 2016USD ($)	Oct. 24, 2016USD ($)	Oct. 18, 2016USD ($)employee	Oct. 28, 2016EUR (€)	Oct. 24, 2016EUR (€)	Oct. 11, 2016USD ($)
Subsequent Event [Line Items]
Acquisition price			$ 8,000,000
Contingent consideration			$ 4,000,000
Number of employees | employee			25
Term Facility
Subsequent Event [Line Items]
Face amount		$ 164,000,000			€ 150,000,000
Senior Notes due 2026 | Senior Notes
Subsequent Event [Line Items]
Interest on notes due						3.25%
Face amount						$ 500,000,000
Senior Notes due 2046 | Senior Notes
Subsequent Event [Line Items]
Interest on notes due						4.375%
Face amount						$ 400,000,000
Finance Contract
Subsequent Event [Line Items]
Face amount	$ 115,000,000			€ 105,000,000
Term of debt	11 years
LIBOR | Term Facility
Subsequent Event [Line Items]
Basis spread on rate		0.35%