Xylem (XYL) 10-Q 1 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 28, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Xylem Inc.
Entity Central Index Key	1,524,472
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		179,568,474

Condensed Consolidated Income S

Condensed Consolidated Income Statements (Unaudited) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Revenue	$ 1,164	$ 932	$ 2,235	$ 1,779
Cost of revenue	705	563	1,364	1,081
Gross profit	459	369	871	698
Selling, general and administrative expenses	270	227	542	446
Research and development expenses	44	27	86	52
Restructuring and asset impairment charges, net	6	6	18	12
Operating income	139	109	225	188
Interest expense	21	20	41	34
Other non-operating income, net	3	1	2	1
Gain from sale of business	0	0	5	0
Income before taxes	121	90	191	155
Income tax expense	21	19	35	18
Net income	100	71	156	137
Less: Net income attributable to non-controlling interests	1	0	1	0
Net income	$ 99	$ 71	$ 155	$ 137
Earnings per share:
Basic (usd per share)	$ 0.55	$ 0.39	$ 0.87	$ 0.77
Diluted (usd per share)	$ 0.55	$ 0.39	$ 0.86	$ 0.76
Weighted average number of shares:
Basic (in shares)	179,599	179,066	179,588	178,828
Diluted (in shares)	180,601	179,890	180,626	179,601
Dividends declared per share (usd per share)	$ 0.18	$ 0.1549	$ 0.36	$ 0.3098

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 100	$ 71	$ 156	$ 137
Other comprehensive income (loss), before tax:
Foreign currency translation adjustment	30	(29)	59	(17)
Net change in derivative hedge agreements:
Unrealized gains (loss)	3	(4)	5	0
Amount of gain reclassified into net income	(1)	(1)	0	(1)
Net change in postretirement benefit plans:
Amortization of net actuarial loss into net income	2	2	5	5
Other comprehensive income (loss), before tax	34	(32)	69	(13)
Income tax (benefit) expense related to items of other comprehensive income	(22)	8	(29)	1
Other comprehensive income (loss), net of tax	56	(40)	98	(14)
Comprehensive income	$ 156	$ 31	$ 254	$ 123

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 288	$ 308
Receivables, less allowances for discounts and doubtful accounts of $28 and $30 in 2017 and 2016, respectively	944	843
Inventories	554	522
Prepaid and other current assets	175	166
Total current assets	1,961	1,839
Property, plant and equipment, net	627	616
Goodwill	2,717	2,632
Other intangible assets, net	1,184	1,201
Other non-current assets	218	186
Total assets	6,707	6,474
Current liabilities:
Accounts payable	442	457
Accrued and other current liabilities	515	521
Short-term borrowings and current maturities of long-term debt	243	260
Total current liabilities	1,200	1,238
Long-term debt	2,168	2,108
Accrued postretirement benefits	427	408
Deferred income tax liabilities	329	352
Other non-current accrued liabilities	201	161
Total liabilities	4,325	4,267
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	1,894	1,876
Retained earnings	1,117	1,033
Treasury stock – at cost 12.4 shares and 11.9 shares in 2017 and 2016, respectively	(428)	(403)
Accumulated other comprehensive loss	(220)	(318)
Total stockholders’ equity	2,365	2,190
Non-controlling interests	17	17
Total stockholders’ equity	2,382	2,207
Total liabilities and stockholders’ equity	$ 6,707	$ 6,474

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowances for discounts and doubtful accounts on receivables	$ 28	$ 30
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	750,000,000	750,000,000
Common Stock, shares issued	191,900,000	191,400,000
Treasury Stock, shares	12,400,000	11,900,000

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating Activities
Net income	$ 156	$ 137
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	55	41
Amortization	61	24
Share-based compensation	11	10
Restructuring and asset impairment charges	18	12
Gain from sale of business	(5)	0
Other, net	4	8
Payments for restructuring	(17)	(6)
Changes in assets and liabilities (net of acquisitions):
Changes in receivables	(70)	(19)
Changes in inventories	(13)	(39)
Changes in accounts payable	(19)	9
Other, net	(30)	(52)
Net Cash – Operating activities	151	125
Investing Activities
Capital expenditures	(77)	(62)
Acquisition of business, net of cash acquired	(6)	(70)
Proceeds from sale of business	11	0
Other, net	3	5
Net Cash – Investing activities	(69)	(127)
Financing Activities
Short-term debt issued	33	89
Short-term debt repaid	(65)	(77)
Long-term debt issued	0	540
Long-term debt repaid	0	(608)
Repurchase of common stock	(25)	(3)
Proceeds from exercise of employee stock options	7	16
Dividends paid	(65)	(56)
Other, net	0	1
Net Cash – Financing activities	(115)	(98)
Effect of exchange rate changes on cash	13	6
Net change in cash and cash equivalents	(20)	(94)
Cash and cash equivalents at beginning of year	308	680
Cash and cash equivalents at end of period	288	586
Cash paid during the period for:
Interest	46	34
Income taxes (net of refunds received)	$ 47	$ 49

Background and Basis of Present

Background and Basis of Presentation	6 Months Ended
	Jun. 30, 2017
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. As previously announced, in the second quarter of 2017 we implemented an organizational redesign by moving Xylem’s Analytics business from our Water Infrastructure business to our Sensus business, which was acquired in the fourth quarter of 2016. We believe that the combination of these businesses will enhance our focus on advanced sensing technologies and will lead to operating efficiencies by integrating the supply chain process, and moving to a leaner, shared operations and functional structure. Accordingly, our reportable segments have changed. Beginning with the second quarter of 2017, the Company now reports the financial position and results of operations of its Analytics and Sensus businesses as one new reportable segment, which is currently called Sensus & Analytics. Our Water Infrastructure reportable segment no longer includes the results of our Analytics business. The Company has recast certain historical amounts between the Company's Water Infrastructure and Sensus & Analytics reportable segments, however this change had no impact on the Company's historical consolidated financial position or results of operations. The recast financial information does not represent a restatement of previously issued financial statements. Our Applied Water reportable segment remains unchanged. Refer to Note 18 "Segment Information" for additional segment information. Xylem operates in three segments, Water Infrastructure, Applied Water and Sensus & Analytics. The Water Infrastructure segment focuses on the transportation and treatment of water, offering a range of products including water and wastewater pumps, treatment equipment, and controls and systems. The Applied Water segment serves many of the primary uses of water and focuses on the residential, commercial and industrial markets. The Applied Water segment’s major products include pumps, valves, heat exchangers, controls and dispensing equipment. The Sensus & Analytics segment focuses on developing advanced technology solutions that enable intelligent use and conservation of critical water and energy resources as well as analytical instrumentation used in the testing of water. The Sensus & Analytics segment's major products include smart metering, networked communications, measurement and control technologies, software and services including cloud-based analytics, remote monitoring and data management, and testing 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, 2016 (" 2016 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 included in our 2016 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. Our quarterly financial periods end on the Saturday closest to the last day of the calendar quarter, except for the fourth quarter which ends on December 31. For ease of presentation, the condensed consolidated financial statements included herein are described as ending on the last day of the calendar quarter.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Pronouncements Not Yet Adopted In March 2017, the Financial Accounting Standards Board (“FASB”) issued amended guidance on presentation of net periodic benefit costs. The amendment requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components are required to be presented in the income statement separately and outside a subtotal of income from operations, if one is presented. The amendment also requires entities to disclose the income statement lines that contain the other components if they are not appropriately described. This guidance is effective retrospectively for periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. 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 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 May 2017, the FASB issued guidance, which amends the scope of modification accounting guidance for share-based payment arrangements. The guidance outlines the types of changes to the terms or conditions of share-based payment arrangements that would require the use of modification accounting. Specifically, modification accounting would not apply if the fair value, vesting conditions, and classification of the award as equity or liability are the same immediately before and after the modification. This guidance is effective prospectively for interim and annual reporting periods beginning December 15, 2017 and early adoption is permitted. We elected to early adopt this guidance effective the second quarter of 2017. The adoption of this guidance did not impact our financial condition or results from operations. In January 2017, the FASB issued guidance amending the impairment testing of goodwill. Under current guidance, the testing of goodwill for impairment is performed at least annually using a two-step test. Step one involves comparing the fair value of a “reporting unit” to its carrying amount. If the applicable book value exceeds the reporting unit’s fair value then step two must be performed. Step two involves comparing the fair value of the reporting unit’s goodwill to the applicable carrying amount of the asset and recognizing an impairment charge equal to the amount by which the carrying amount of the goodwill exceeds its implied fair value. The amended guidance eliminates step two of the impairment test and allows an entity to record an impairment charge equal to the amount that the carrying amount of the applicable reporting unit exceeds its fair value, up to the value of the recorded goodwill. This guidance is effective prospectively for interim and annual goodwill impairment tests beginning after December 15, 2019 with early adoption permitted for interim or annual tests after January 1, 2017. We elected to early adopt this guidance effective the first quarter of 2017. The adoption of this guidance did not impact our financial condition or results of operations. In October 2016, the 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 elected to early adopt this guidance effective the first quarter of 2017. As a result of adopting the amended guidance, prepaid tax assets were reduced by $14 million , long-term deferred tax assets increased $3 million , and accrued taxes were reduced by $4 million . The net impact of these adjustments on retained earnings was a decrease of $7 million . 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 adopted this guidance effective the first quarter of 2017. The adoption of this guidance did not impact our financial condition or results of operations.

Acquisitions and Divestitures

Acquisitions and Divestitures	6 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
Acquisitions and Divestitures	Acquisitions and Divestitures 2017 Acquisitions and Divestitures On February 17, 2017, we divested our United Kingdom and Poland based membranes business for approximately $11 million . The sale resulted in a gain of $5 million , which is reflected in gain from sale of business in our Condensed Consolidated Income Statement. The business, which was part of our Applied Water segment, provided membrane filtration products primarily to customers in the municipal water and industrial sectors. The business reported 2016 annual revenue of approximately $8 million . 2016 Acquisitions and Divestitures Sensus Worldwide Limited On October 31, 2016, the Company acquired all of the outstanding equity interests of Sensus Worldwide Limited (other than Sensus Industries Limited) (“Sensus”) effective October 31, 2016 for $1,766 million ( $1,710 million net of cash acquired), including a $6 million payment in 2017 for a working capital adjustment. Sensus develops advanced technology solutions that enable intelligent use and conservation of critical water and energy resources. Sensus' major products include smart metering, networked communications, measurement and control technologies, software and services including cloud-based analytics, remote monitoring and data management . Sensus results of operations were consolidated with the Company effective November 1, 2016 and along with our Analytics business it constitutes a separate reportable segment. Refer to Note 18 "Segment Information" for Sensus segment information. The preliminary Sensus purchase price allocation as of October 31, 2016 is shown in the following table. (in millions) Amount Cash $ 56 Receivables 104 Inventories 79 Prepaid and other current assets 20 Property, plant and equipment 181 Intangible assets 795 Other long-term assets 6 Accounts payable (69 ) Accrued and other current liabilities (91 ) Deferred income tax liabilities (212 ) Accrued post retirement benefits (84 ) Other non-current accrued liabilities (60 ) Total identifiable net assets 725 Goodwill 1,058 Non-controlling interest (17 ) Total consideration $ 1,766 The fair values of Sensus assets and liabilities were determined based on preliminary estimates and assumptions which management believes are reasonable. The preliminary purchase price allocation is subject to further refinement and may require significant adjustments to arrive at the final purchase price allocation. These adjustments will primarily relate to property, plant and equipment, intangible assets, certain liabilities, and income tax related items. The final determination of the fair value of certain assets and liabilities will be completed as soon as the necessary information is available but no later than one year from the acquisition date. Goodwill arising from the acquisition consists largely of synergies and economies of scale expected from combining the operations of Sensus and Xylem. All of the goodwill was assigned to the Sensus & Analytics segment and is not deductible for tax purposes. The preliminary estimate of the fair value of Sensus identifiable intangible assets was determined primarily using the “income approach,” which requires a forecast of all of the expected future cash flows either through the use of the multi-period excess earnings method or the relief-from-royalty method. Some of the more significant assumptions inherent in the development of intangible asset values include: the amount and timing of projected future cash flows, the discount rate selected to measure the risks inherent in the future cash flows, the assessment of the intangible asset’s life cycle, as well as other factors. The following table summarizes key information underlying identifiable intangible assets related to the Sensus acquisition: Category Life Amount (in millions) Customer and Distributor Relationships 2 - 18 years $ 556 Tradenames 10 - 25 years 98 Internally Developed Network Software 7 years 60 FCC Licenses Indefinite lived 24 Technology 5 - 15 years 39 Other 1 - 16 years 18 Total $ 795 The following table summarizes, on an unaudited pro forma basis, the condensed combined results of operations of the Company for the three and six months ended June 30, 2016 assuming the acquisition of Sensus was made on January 1, 2015. (in millions) Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Revenue $ 1,167 $ 2,242 Net income $ 85 $ 183 The foregoing unaudited pro forma results are for informational purposes only and are not necessarily indicative of the actual results of operations that might have occurred had the acquisition occurred on January 1, 2015, nor are they necessarily indicative of future results. The pro forma financial information includes the impact of purchase accounting and other nonrecurring items directly attributable to the acquisition, which include: • Amortization expense of acquired intangibles • Adjustments to the depreciation of property, plant and equipment reflecting the impact of the calculated fair value of those assets in accordance with purchase accounting • Amortization of the fair value adjustment for warranty liabilities • Adjustments to interest expense to remove historical Sensus interest costs and reflect Xylem's current debt profile • The related tax impact of the above referenced adjustments The pro forma results do not include any cost savings or operational synergies that may be generated or realized due to the acquisition of Sensus. The pro forma six-month period reflects the inclusion of a $16 million tax valuation release and a $27 million reduction to warranty expense in the first calendar quarter of 2016. Tideland Signal Corporation 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, had approximately 160 employees. Our condensed consolidated financial statements include Tideland’s results of operations from February 1, 2016 within the Sensus & Analytics segment.

Restructuring Charges

Restructuring Charges	6 Months Ended
	Jun. 30, 2017
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 six months ended June 30, 2017 , we recognized restructuring charges of $6 million and $ 13 million million, respectively. We incurred these charges primarily as a continuation of our efforts 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 headcount reductions within our Sensus & Analytics segment. During the three and six months ended June 30, 2016 , we recognized restructuring charges of $6 million and $12 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. The following table presents the components of restructuring expense and asset impairment charges. Three Months Ended Six Months Ended June 30, June 30, (in millions) 2017 2016 2017 2016 By component: Severance and other charges $ 6 $ 6 $ 14 $ 12 Reversal of restructuring accruals — — (1 ) — Total restructuring charges $ 6 $ 6 $ 13 $ 12 Asset impairment — — 5 — Total restructuring and asset impairment charges $ 6 $ 6 $ 18 $ 12 By segment: Water Infrastructure $ 3 $ 5 $ 5 $ 7 Applied Water 2 1 10 3 Sensus & Analytics 1 — 3 — 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 six months ended June 30, 2017 and 2016 . (in millions) 2017 2016 Restructuring accruals - January 1 $ 15 $ 3 Restructuring charges 13 12 Cash payments (17 ) (6 ) Foreign currency and other — — Restructuring accruals - June 30 $ 11 $ 9 By segment: Water Infrastructure $ 1 $ 5 Applied Water 4 1 Sensus & Analytics 3 — Regional selling locations (a) 3 1 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 six months ended June 30, 2017 and 2016 of employee position eliminations associated with restructuring activities. 2017 2016 Planned reductions - January 1 188 82 Additional planned reductions 105 223 Actual reductions and reversals (185 ) (203 ) Planned reductions - June 30 108 102 The following table presents expected restructuring spend: (in millions) Water Infrastructure Applied Water Sensus & Analytics Corporate Total Actions Commenced in 2017: Total expected costs $ 14 $ 6 $ 1 $ — $ 21 Costs incurred during Q1 2017 — 1 1 — 2 Costs incurred during Q2 2017 3 1 — — 4 Total expected costs remaining $ 11 $ 4 $ — $ — $ 15 Actions Commenced in 2016: Total expected costs $ 13 $ 13 $ 10 $ 2 $ 38 Costs incurred during 2016 11 10 6 2 29 Costs incurred during Q1 2017 2 2 1 — 5 Costs incurred during Q2 2017 — 1 1 — 2 Total expected costs remaining $ — $ — $ 2 $ — $ 2 The Water Infrastructure, Applied Water, and Sensus & Analytics actions commenced in 2017 consist primarily of severance charges and are expected to continue through the end of 2018. The Water Infrastructure, Applied Water, Sensus & Analytics and Corporate actions commenced in 2016 consist primarily of severance charges and are expected to continue through the end of 2018. Asset Impairment Charges During the first quarter of 2017 we determined that certain assets within our Applied Water segment, including a tradename, were impaired. Accordingly we recognized an impairment charge of $5 million . Refer to Note 9, "Goodwill and Other Intangible Assets," for additional information.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
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 June 30, 2017 was $21 million resulting in an effective tax rate of 16.8% , compared to $19 million resulting in an effective tax rate of 21.6% for the same period in 2016 . The income tax provision for the six months ended June 30, 2017 was $35 million resulting in an effective tax rate of 18.1% , compared to $18 million resulting in an effective tax rate of 11.8% for the same period in 2016. The effective tax rate was lower than the United States federal statutory rate primarily due to the mix of earnings in jurisdictions in both periods. The decrease in the effective tax rate for the three months ended June 30, 2017 as compared to the same period in the prior year was primarily due to the mix of earnings in jurisdictions and repatriation of foreign earnings in 2016 that did not recur. Additionally, the effective tax rate for the period ending June 30, 2016 included the release of an unrecognized tax benefit in 2016 due to the effective settlement of a tax examination, offset in part by the establishment of a valuation allowance. 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 June 30, 2017 was $68 million , which 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 June 30, 2017 , we had $3 million of interest accrued for unrecognized tax benefits.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The following is a reconciliation of the shares used in calculating basic and diluted net earnings per share. Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Net income attributable to Xylem (in millions) $ 99 $ 71 $ 155 $ 137 Shares (in thousands): Weighted average common shares outstanding 179,571 179,020 179,557 178,790 Add: Participating securities (a) 28 46 31 38 Weighted average common shares outstanding — Basic 179,599 179,066 179,588 178,828 Plus incremental shares from assumed conversions: (b) Dilutive effect of stock options 640 459 600 396 Dilutive effect of restricted stock units and performance share units 362 365 438 377 Weighted average common shares outstanding — Diluted 180,601 179,890 180,626 179,601 Basic earnings per share $ 0.55 $ 0.39 $ 0.87 $ 0.77 Diluted earnings per share $ 0.55 $ 0.39 $ 0.86 $ 0.76 (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 Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Stock options 1,854 2,068 1,813 2,161 Restricted stock units 464 582 427 591 Performance share units 530 409 467 334

Inventories

Inventories	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories The components of total inventories are summarized as follows: (in millions) June 30, December 31, Finished goods $ 233 $ 220 Work in process 52 42 Raw materials 269 260 Total inventories $ 554 $ 522

Property, Plant and Equipment

Property, Plant and Equipment	6 Months Ended
	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, Plant and Equipment The components of total property, plant and equipment, net are as follows: (in millions) June 30, December 31, Land, buildings and improvements $ 317 $ 299 Machinery and equipment 774 731 Equipment held for lease or rental 233 218 Furniture and fixtures 104 95 Construction work in progress 77 76 Other 20 19 Total property, plant and equipment, gross 1,525 1,438 Less accumulated depreciation 898 822 Total property, plant and equipment, net $ 627 $ 616 Depreciation expense of $27 million and $55 million million was recognized in the three and six months ended June 30, 2017, respectively, and $21 million and $41 million for the three and six months ended June 30, 2016 .

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Jun. 30, 2017
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 six months ended June 30, 2017 are as follows: (in millions) Water Infrastructure Applied Water Sensus & Analytics Total Balance as of January 1, 2017 $ 1,074 $ 505 $ 1,053 $ 2,632 Activity in 2017 Divested/Acquired — (2 ) (5 ) (7 ) Foreign currency and other 34 15 43 92 Balance as of June 30, 2017 $ 1,108 $ 518 $ 1,091 $ 2,717 Other Intangible Assets Information regarding our other intangible assets is as follows: June 30, 2017 December 31, 2016 (in millions) Carrying Amount Accumulated Amortization Net Intangibles Carrying Amount Accumulated Amortization Net Intangibles Customer and distributor relationships $ 906 $ (205 ) $ 701 $ 891 $ (168 ) $ 723 Proprietary technology and patents 158 (69 ) 89 156 (61 ) 95 Trademarks 142 (34 ) 108 139 (23 ) 116 Software 258 (136 ) 122 218 (118 ) 100 Other 25 (18 ) 7 26 (13 ) 13 Indefinite-lived intangibles 157 — 157 154 — 154 Other Intangibles $ 1,646 $ (462 ) $ 1,184 $ 1,584 $ (383 ) $ 1,201 Amortization expense related to finite-lived intangible assets was $30 million and $61 million for the three and six months ended June 30, 2017, respectively, and $12 million and $24 million for the three and six months ended June 30, 2016, respectively. During the first quarter of 2017 we determined that the intended use of a finite lived trade name within our Applied Water segment had changed. Accordingly we recorded a $4 million impairment charge. The charge was calculated using income approach, which is considered a Level 3 input for fair value measurement, and is reflected in “Restructuring and asset impairment charges” in our Condensed Consolidated Income Statements.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2017
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 Australian Dollar and Hungarian Forint. We had foreign exchange contracts with purchase notional amounts totaling $124 million as of June 30, 2017 . As of June 30, 2017 , our most significant foreign currency derivatives included contracts to purchase Swedish Krona and sell Euro, sell U.S. Dollar and purchase Euro, sell British Pound and purchase Euro, and to purchase Polish Zloty and sell Euro. The purchased notional amounts associated with these currency derivatives are $51 million , $29 million , $16 million , and $13 million , respectively. As of December 31, 2016 we did not hold any foreign exchange contracts. 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 $427 million and $391 million as of June 30, 2017 and December 31, 2016 , 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 $566 million , net of unamortized discount, as a hedge of a net investment in certain foreign subsidiaries. The table below presents the effect of our derivative financial instruments on the Condensed Consolidated Income Statements and Statements of Comprehensive Income. Three Months Ended Six Months Ended June 30, June 30, (in millions) 2017 2016 2017 2016 Cash Flow Hedges Foreign Exchange Contracts Amount of gain (loss) recognized in OCI (a) $ 3 $ (4 ) $ 5 $ — Amount of gain reclassified from OCI into revenue (a) (1 ) (1 ) (1 ) — Amount of (gain) loss reclassified from OCI into cost of revenue (a) — — 1 (1 ) Net Investment Hedges Cross Currency Swaps Amount of gain (loss) recognized in OCI (a) $ (23 ) $ 11 $ (31 ) $ — Foreign Currency Denominated Debt Amount of gain (loss) recognized in OCI (a) $ (34 ) $ 10 $ (48 ) $ (5 ) (a) Effective portion As of June 30, 2017 , $4 million of net gains 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 six months ended June 30, 2017 and 2016 . As of June 30, 2017 , 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 six months ended June 30, 2017 . 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) June 30, December 31, Derivatives designated as hedging instruments Assets Cash Flow Hedges Other current assets $ 3 $ — Liabilities Cash Flow Hedges Other current liabilities $ (1 ) $ — Net Investment Hedges Other non-current liabilities $ (40 ) $ (6 ) The fair value of our long-term debt, due in 2023, designated as a net investment hedge was $609 million and $555 million as of June 30, 2017 and December 31, 2016, respectively.

Accrued and Other Current Liabi

Accrued and Other Current Liabilities	6 Months Ended
	Jun. 30, 2017
Payables and Accruals [Abstract]
Accrued and Other Current Liabilities	Accrued and Other Current Liabilities The components of total accrued and other current liabilities are as follows: (in millions) June 30, December 31, Compensation and other employee benefits $ 182 $ 182 Customer-related liabilities 99 80 Accrued taxes 66 63 Accrued warranty costs 58 64 Other accrued liabilities 110 132 Total accrued and other current liabilities $ 515 $ 521

Credit Facilities and Debt

Credit Facilities and Debt	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Credit Facilities and Debt	Credit Facilities and Debt Total debt outstanding is summarized as follows: (in millions) June 30, December 31, 4.875% Senior Notes due 2021 (a) $ 600 $ 600 2.250% Senior Notes due 2023 (a) 571 522 3.250% Senior Notes due 2026 (a) 500 500 4.375% Senior Notes due 2046 (a) 400 400 Commercial paper 99 65 Research and development facility agreement 42 38 Research and development finance contract 120 110 Term loan 103 157 Debt issuance costs and unamortized discount (b) (24 ) (24 ) Total debt 2,411 2,368 Less: short-term borrowings and current maturities of long-term debt 243 260 Total long-term debt $ 2,168 $ 2,108 (a) The fair value of our Senior Notes 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 $650 million and $651 million as of June 30, 2017 and December 31, 2016 , respectively. The fair value of our Senior Notes due 2023 was $609 million and $555 million as of June 30, 2017 and December 31, 2016, respectively. The fair value of our Senior Notes due 2026 was $500 million and $487 million as of June 30, 2017 and December 31, 2016, respectively.The fair value of our Senior Notes due 2046 was $416 million and $397 million as of June 30, 2017 and December 31, 2016, respectively. (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"). 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 2021, the Senior Notes due 2023 and the Senior Notes due 2026, the “Senior Notes”). The Senior Notes include covenants that 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 also redeem the Senior Notes in certain other circumstances, as set forth 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. Interest on the Senior Notes 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. Interest on the Senior Notes due 2026 and the Senior Notes due 2046 is payable on May 1 and November 1 of each year beginning on May 1, 2017. As of June 30, 2017 , we were in compliance with all covenants for the Senior Notes. We used the net proceeds of the Senior Notes due 2026 and the Senior Notes due 2046, together with cash on hand, proceeds from issuances under our existing commercial paper program and borrowings under the Term Facility (as described below), to fund the acquisition of Sensus (refer to Note 3 for further information on the Sensus acquisition). Credit Facilities 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 four full fiscal quarters 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 June 30, 2017 the Credit Facility was undrawn and we are in compliance with all covenants. European Investment Bank - R&D Finance Contract 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 $120 million ) 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. Both the Finance Contract and the R&D Facility Agreement (described below) are subject to the same leverage ratio as the Credit Facility. Both agreements also contain limitations on, among other things, incurring debt, granting liens, and entering into sale and leaseback transactions, as well as other terms and conditions, such as customary representations and warranties, additional covenants and customary events of default. Both the Finance Contract and the R&D Facility Agreement provide for fixed rate loans and floating rate loans. Under the Finance Contract, 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% ). As of June 30, 2017 and December 31, 2016, $120 million and $110 million were outstanding under the Finance Contract, respectively. European Investment Bank - R&D Facility Agreement On December 3, 2015, the Company amended and restated its Risk Sharing Finance Facility Agreement (the "R&D Facility Agreement") with the EIB to amend the maturity date. The Facility provides an aggregate principal amount of up to €120 million (approximately $137 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. 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. As of June 30, 2017 and December 31, 2016 $42 million and $38 million were 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 Consolidated Balance Sheets since we intend to repay this obligation in less than a year. Term Loan Facility On October 24, 2016, the Company’s subsidiary, Xylem Europe GmbH (the “borrower”) entered into a 12-month €150 million (approximately $171 million ) 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 acquisition of Sensus. The Term Facility will mature on October 26, 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. As of June 30, 2017 and December 31, 2016, $103 million and $157 million were outstanding under the Term Loan Facility, respectively. 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 June 30, 2017 and December 31, 2016 $99 million and $65 million of the Company’s $600 million commercial paper program was outstanding at a weighted average interest rate of 1.44% and 1.12% , respectively. We will periodically borrow under this program and may borrow under it in future periods.

Postretirement Benefit Plans

Postretirement Benefit Plans	6 Months Ended
	Jun. 30, 2017
Retirement Benefits [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 Six Months Ended June 30, June 30, (in millions) 2017 2016 2017 2016 Domestic defined benefit pension plans: Service cost $ 1 $ 1 $ 2 $ 1 Interest cost 1 1 2 2 Expected return on plan assets (1 ) (1 ) (3 ) (2 ) Amortization of net actuarial loss — — 1 1 Net periodic benefit cost $ 1 $ 1 $ 2 $ 2 International defined benefit pension plans: Service cost $ 3 $ 2 $ 6 $ 5 Interest cost 5 6 10 12 Expected return on plan assets (8 ) (8 ) (16 ) (17 ) Amortization of net actuarial loss 2 2 4 4 Net periodic benefit cost $ 2 $ 2 $ 4 $ 4 Total net periodic benefit cost $ 3 $ 3 $ 6 $ 6 The total net periodic benefit cost for other postretirement employee benefit plans was less than $1 million and $1 million including amounts recognized in other comprehensive income ("OCI") of less than $1 million , for both the three and six months ended June 30, 2017 . The total net periodic benefit cost for other postretirement employee benefit plans was $1 million and $2 million , including amounts recognized in OCI of less than $1 million , for both the three and six months ended June 30, 2016 . We contributed $13 million and $14 million to our defined benefit plans during the six months ended June 30, 2017 and 2016 , respectively. Additional contributions ranging between approximately $9 million and $15 million are expected during the remainder of 2017 .

Share-Based Compensation Plans

Share-Based Compensation Plans	6 Months Ended
	Jun. 30, 2017
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 $11 million during the three and six months ended June 30, 2017, respectively, and $5 million and $10 million during the three and six months ended June 30, 2016, respectively. The unrecognized compensation expense related to our stock options, restricted stock units and performance share units was $8 million , $25 million and $15 million , respectively, at June 30, 2017 and is expected to be recognized over a weighted average period of 2.1 , 2.1 and 2.2 years, respectively. The amount of cash received from the exercise of stock options was $7 million and $16 million for the six months ended June 30, 2017 and 2016 , respectively. Stock Option Grants The following is a summary of the changes in outstanding stock options for the six months ended June 30, 2017 . Share units (in thousands) Weighted Average Exercise Price / Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding at January 1, 2017 2,126 $ 33.71 6.9 Granted 498 48.33 Exercised (217 ) 31.70 Forfeited and expired (47 ) 42.00 Outstanding at June 30, 2017 2,360 $ 36.81 7.2 $ 44 Options exercisable at June 30, 2017 1,423 $ 32.89 6.0 $ 32 Vested and expected to vest as of June 30, 2017 2,239 $ 36.32 7.1 $ 43 The total intrinsic value of options exercised (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) during the six months ended June 30, 2017 was $4.5 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 2017 grants. Volatility 25.40 % Risk-free interest rate 2.07 % Dividend yield 1.49 % Expected term (in years) 5.1 Weighted-average fair value / share $ 10.65 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 unit activity for the six months ended June 30, 2017 . The fair value of the restricted stock units is equal to the closing share price on the date of the grant. Share units (in thousands) Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2017 899 $ 37.67 Granted 332 49.26 Vested (353 ) 38.27 Forfeited (42 ) 40.74 Outstanding at June 30, 2017 836 $ 36.05 ROIC Performance Share Unit Grants The following is a summary of Return on Invested Capital ("ROIC") performance share unit grants for the six months ended June 30, 2017 . The fair value of the ROIC performance share units is equal to the closing share price on the date of the grant. Share units (in thousands) Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2017 250 $ 37.11 Granted 110 48.33 Vested — — Forfeited (67 ) 38.40 Outstanding at June 30, 2017 293 $ 41.01 TSR Performance Share Units Grants The following is a summary of our Total Shareholder Return ("TSR") performance share unit grants for the six months ended June 30, 2017 . Share units (in thousands) Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2017 108 $ 46.15 Granted 110 45.43 Vested — — Forfeited (9 ) 44.14 Outstanding at June 30, 2017 209 $ 47.20 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 2017 grants. Volatility 30.5 % Risk-free interest rate 1.51 % Dividend yield 1.49 %

Capital Stock

Capital Stock	6 Months Ended
	Jun. 30, 2017
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. For the three and six months ended June 30, 2017 we repurchased 0.1 million shares for $7 million . There were no shares repurchased under this program during the three and six months ended June 30, 2016 . There are up to $413 million in shares that may still be purchased under this plan as of June 30, 2017 . 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. For the three and six months ended June 30, 2017 we repurchased 0.25 million shares for $13 million . There were no shares repurchased under this program during the three and six months ended June 30, 2016 . As of June 30, 2017 , we have exhausted the authorized amount to repurchase shares under this plan. Aside from the aforementioned repurchase programs, we repurchased less than 0.1 million shares and 0.1 million shares for less than $1 million and $5 million for the three and six months ended June 30, 2017 , respectively, in relation to settlement of employee tax withholding obligations due as a result of the vesting of restricted stock units. Likewise, we repurchased less than 0.1 million shares and 0.1 million shares for less than $1 million and $3 million for the three and six months ended June 30, 2016 , respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) The following table provides the components of accumulated other comprehensive income (loss) for the three months ended June 30, 2017: (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at April 1, 2017 $ (103 ) $ (175 ) $ 2 $ (276 ) Foreign currency translation adjustment 30 — — 30 Tax on foreign currency translation adjustment 22 — — 22 Amortization of net actuarial loss on postretirement benefit plans into: Selling, general and administrative expenses — 1 — 1 Other non-operating income — 1 — 1 Income tax impact on amortization of postretirement benefit plan items — — — — Unrealized gain on derivative hedge agreements — — 3 3 Reclassification of unrealized gain on derivative hedge agreements into revenue — — (1 ) (1 ) Balance at June 30, 2017 $ (51 ) $ (173 ) $ 4 $ (220 ) The following table provides the components of accumulated other comprehensive income (loss) for the six months ended June 30, 2017 : (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at January 1, 2017 $ (140 ) $ (177 ) $ (1 ) $ (318 ) Foreign currency translation adjustment 59 — — 59 Tax on foreign currency translation adjustment 30 — — 30 Amortization of net actuarial loss on postretirement benefit plans into: Cost of revenue — 1 — 1 Selling, general and administrative expenses — 3 — 3 Other non-operating income — 1 — 1 Income tax impact on amortization of postretirement benefit plan items — (1 ) — (1 ) Unrealized gain on derivative hedge agreements — — 5 5 Reclassification of unrealized loss on derivative hedge agreements into cost of revenue — — 1 1 Reclassification of unrealized gain on derivative hedge agreements into revenue — — (1 ) (1 ) Balance at June 30, 2017 $ (51 ) $ (173 ) $ 4 $ (220 )

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
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. 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. We have estimated and accrued $11 million and $11 million as of June 30, 2017 and December 31, 2016, respectively, for these general litigation matters. 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 June 30, 2017 and December 31, 2016 , the amount of stand-by letters of credit, bank guarantees and surety bonds was $248 million and $218 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 and $4 million as of June 30, 2017 and December 31, 2016 , respectively, 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) 2017 2016 Warranty accrual – January 1 $ 99 $ 33 Net charges for product warranties in the period 17 13 Settlement of warranty claims (24 ) (15 ) Foreign currency and other 2 1 Warranty accrual - June 30 $ 94 $ 32

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Segment Information	Segment Information Our business has three reportable segments: Water Infrastructure, Applied Water and Sensus & Analytics. When determining the reportable segments, the Company aggregated operating segments based on their similar economic and operating characteristics. The Water Infrastructure segment focuses on the transportation and treatment of water, offering a range of products including water and wastewater pumps, treatment equipment, and controls and systems. The Applied Water segment serves many of the primary uses of water and focuses on the residential, commercial and industrial markets. The Applied Water segment’s major products include pumps, valves, heat exchangers, controls and dispensing equipment. The Sensus & Analytics segment focuses on developing advanced technology solutions that enable intelligent use and conservation of critical water and energy resources as well as analytical instrumentation used in the testing of water. The Sensus & Analytics segment's major products include smart metering, networked communications, measurement and control technologies, software and services including cloud-based analytics, remote monitoring and data management, and testing equipment . Additionally, we have Regional selling locations, which consist primarily of selling and marketing organizations and related support services, that offer products and services across 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 2016 Annual Report). The following tables contain financial information for each reportable segment: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2017 2016 2017 2016 Revenue: Water Infrastructure $ 482 $ 484 $ 901 $ 924 Applied Water 361 366 694 699 Sensus & Analytics 321 82 640 156 Total $ 1,164 $ 932 $ 2,235 $ 1,779 Operating Income: Water Infrastructure $ 74 $ 66 $ 114 $ 117 Applied Water 49 51 85 90 Sensus & Analytics 29 4 54 7 Corporate and other (13 ) (12 ) (28 ) (26 ) Total operating income $ 139 $ 109 $ 225 $ 188 Interest expense $ 21 $ 20 $ 41 $ 34 Other non-operating income 3 1 2 1 Gain from sale of business — — 5 — Income before taxes $ 121 $ 90 $ 191 $ 155 Depreciation and Amortization: Water Infrastructure $ 15 $ 16 $ 31 $ 33 Applied Water 6 6 12 12 Sensus & Analytics 30 5 61 10 Regional selling locations (a) 4 4 8 6 Corporate and other 2 2 4 4 Total $ 57 $ 33 $ 116 $ 65 Capital Expenditures: Water Infrastructure $ 13 $ 13 $ 27 $ 32 Applied Water 3 3 10 11 Sensus & Analytics 15 2 32 2 Regional selling locations (b) 3 5 8 15 Corporate and other — 1 — 2 Total $ 34 $ 24 $ 77 $ 62 (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) June 30, December 31, Water Infrastructure $ 1,218 $ 1,179 Applied Water 1,010 990 Sensus & Analytics 3,200 3,102 Regional selling locations (a) 1,057 965 Corporate and other (b) 222 238 Total $ 6,707 $ 6,474 (a) The Regional selling locations have assets that consist primarily of cash, accounts receivable and inventory which are not allocated to the segments. (b) Corporate and other consists of items pertaining to our corporate headquarters function, which principally consist of cash, deferred tax assets, pension assets and certain property, plant and equipment.

Background and Basis of Prese25

Background and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2017
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, 2016 (" 2016 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 included in our 2016 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. Our quarterly financial periods end on the Saturday closest to the last day of the calendar quarter, except for the fourth quarter which ends on December 31. For ease of presentation, the condensed consolidated financial statements included herein are described as ending on the last day of the calendar quarter.

Recently Issued Accounting Pr26

Recently Issued Accounting Pronouncements (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Pronouncements Not Yet Adopted and Recently Adopted Pronouncements	Pronouncements Not Yet Adopted In March 2017, the Financial Accounting Standards Board (“FASB”) issued amended guidance on presentation of net periodic benefit costs. The amendment requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components are required to be presented in the income statement separately and outside a subtotal of income from operations, if one is presented. The amendment also requires entities to disclose the income statement lines that contain the other components if they are not appropriately described. This guidance is effective retrospectively for periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. 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 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 May 2017, the FASB issued guidance, which amends the scope of modification accounting guidance for share-based payment arrangements. The guidance outlines the types of changes to the terms or conditions of share-based payment arrangements that would require the use of modification accounting. Specifically, modification accounting would not apply if the fair value, vesting conditions, and classification of the award as equity or liability are the same immediately before and after the modification. This guidance is effective prospectively for interim and annual reporting periods beginning December 15, 2017 and early adoption is permitted. We elected to early adopt this guidance effective the second quarter of 2017. The adoption of this guidance did not impact our financial condition or results from operations. In January 2017, the FASB issued guidance amending the impairment testing of goodwill. Under current guidance, the testing of goodwill for impairment is performed at least annually using a two-step test. Step one involves comparing the fair value of a “reporting unit” to its carrying amount. If the applicable book value exceeds the reporting unit’s fair value then step two must be performed. Step two involves comparing the fair value of the reporting unit’s goodwill to the applicable carrying amount of the asset and recognizing an impairment charge equal to the amount by which the carrying amount of the goodwill exceeds its implied fair value. The amended guidance eliminates step two of the impairment test and allows an entity to record an impairment charge equal to the amount that the carrying amount of the applicable reporting unit exceeds its fair value, up to the value of the recorded goodwill. This guidance is effective prospectively for interim and annual goodwill impairment tests beginning after December 15, 2019 with early adoption permitted for interim or annual tests after January 1, 2017. We elected to early adopt this guidance effective the first quarter of 2017. The adoption of this guidance did not impact our financial condition or results of operations. In October 2016, the 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 elected to early adopt this guidance effective the first quarter of 2017. As a result of adopting the amended guidance, prepaid tax assets were reduced by $14 million , long-term deferred tax assets increased $3 million , and accrued taxes were reduced by $4 million . The net impact of these adjustments on retained earnings was a decrease of $7 million . 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 adopted this guidance effective the first quarter of 2017. The adoption of this guidance did not impact our financial condition or results of operations.

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	6 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
Purchase Price Allocation	The preliminary Sensus purchase price allocation as of October 31, 2016 is shown in the following table. (in millions) Amount Cash $ 56 Receivables 104 Inventories 79 Prepaid and other current assets 20 Property, plant and equipment 181 Intangible assets 795 Other long-term assets 6 Accounts payable (69 ) Accrued and other current liabilities (91 ) Deferred income tax liabilities (212 ) Accrued post retirement benefits (84 ) Other non-current accrued liabilities (60 ) Total identifiable net assets 725 Goodwill 1,058 Non-controlling interest (17 ) Total consideration $ 1,766
Summary of Intangible Assets Acquired	The following table summarizes key information underlying identifiable intangible assets related to the Sensus acquisition: Category Life Amount (in millions) Customer and Distributor Relationships 2 - 18 years $ 556 Tradenames 10 - 25 years 98 Internally Developed Network Software 7 years 60 FCC Licenses Indefinite lived 24 Technology 5 - 15 years 39 Other 1 - 16 years 18 Total $ 795
Pro Forma Information	The following table summarizes, on an unaudited pro forma basis, the condensed combined results of operations of the Company for the three and six months ended June 30, 2016 assuming the acquisition of Sensus was made on January 1, 2015. (in millions) Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Revenue $ 1,167 $ 2,242 Net income $ 85 $ 183

Restructuring Charges (Tables)

Restructuring Charges (Tables)	6 Months Ended
	Jun. 30, 2017
Restructuring and Related Activities [Abstract]
Components of restructuring and asset impairment charges	The following table presents the components of restructuring expense and asset impairment charges. Three Months Ended Six Months Ended June 30, June 30, (in millions) 2017 2016 2017 2016 By component: Severance and other charges $ 6 $ 6 $ 14 $ 12 Reversal of restructuring accruals — — (1 ) — Total restructuring charges $ 6 $ 6 $ 13 $ 12 Asset impairment — — 5 — Total restructuring and asset impairment charges $ 6 $ 6 $ 18 $ 12 By segment: Water Infrastructure $ 3 $ 5 $ 5 $ 7 Applied Water 2 1 10 3 Sensus & Analytics 1 — 3 — 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 six months ended June 30, 2017 and 2016 . (in millions) 2017 2016 Restructuring accruals - January 1 $ 15 $ 3 Restructuring charges 13 12 Cash payments (17 ) (6 ) Foreign currency and other — — Restructuring accruals - June 30 $ 11 $ 9 By segment: Water Infrastructure $ 1 $ 5 Applied Water 4 1 Sensus & Analytics 3 — Regional selling locations (a) 3 1 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.
Planned Employee Reductions Associated with Restructuring	The following is a rollforward for the six months ended June 30, 2017 and 2016 of employee position eliminations associated with restructuring activities. 2017 2016 Planned reductions - January 1 188 82 Additional planned reductions 105 223 Actual reductions and reversals (185 ) (203 ) Planned reductions - June 30 108 102
Expected Restructuring Costs	The following table presents expected restructuring spend: (in millions) Water Infrastructure Applied Water Sensus & Analytics Corporate Total Actions Commenced in 2017: Total expected costs $ 14 $ 6 $ 1 $ — $ 21 Costs incurred during Q1 2017 — 1 1 — 2 Costs incurred during Q2 2017 3 1 — — 4 Total expected costs remaining $ 11 $ 4 $ — $ — $ 15 Actions Commenced in 2016: Total expected costs $ 13 $ 13 $ 10 $ 2 $ 38 Costs incurred during 2016 11 10 6 2 29 Costs incurred during Q1 2017 2 2 1 — 5 Costs incurred during Q2 2017 — 1 1 — 2 Total expected costs remaining $ — $ — $ 2 $ — $ 2

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Basic and diluted net earnings per share	The following is a reconciliation of the shares used in calculating basic and diluted net earnings per share. Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Net income attributable to Xylem (in millions) $ 99 $ 71 $ 155 $ 137 Shares (in thousands): Weighted average common shares outstanding 179,571 179,020 179,557 178,790 Add: Participating securities (a) 28 46 31 38 Weighted average common shares outstanding — Basic 179,599 179,066 179,588 178,828 Plus incremental shares from assumed conversions: (b) Dilutive effect of stock options 640 459 600 396 Dilutive effect of restricted stock units and performance share units 362 365 438 377 Weighted average common shares outstanding — Diluted 180,601 179,890 180,626 179,601 Basic earnings per share $ 0.55 $ 0.39 $ 0.87 $ 0.77 Diluted earnings per share $ 0.55 $ 0.39 $ 0.86 $ 0.76 (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 Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Stock options 1,854 2,068 1,813 2,161 Restricted stock units 464 582 427 591 Performance share units 530 409 467 334

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventories	The components of total inventories are summarized as follows: (in millions) June 30, December 31, Finished goods $ 233 $ 220 Work in process 52 42 Raw materials 269 260 Total inventories $ 554 $ 522

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	6 Months Ended
	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	The components of total property, plant and equipment, net are as follows: (in millions) June 30, December 31, Land, buildings and improvements $ 317 $ 299 Machinery and equipment 774 731 Equipment held for lease or rental 233 218 Furniture and fixtures 104 95 Construction work in progress 77 76 Other 20 19 Total property, plant and equipment, gross 1,525 1,438 Less accumulated depreciation 898 822 Total property, plant and equipment, net $ 627 $ 616

Goodwill and Other Intangible32

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the carrying value of goodwill by operating segment	Changes in the carrying value of goodwill by reportable segment for the six months ended June 30, 2017 are as follows: (in millions) Water Infrastructure Applied Water Sensus & Analytics Total Balance as of January 1, 2017 $ 1,074 $ 505 $ 1,053 $ 2,632 Activity in 2017 Divested/Acquired — (2 ) (5 ) (7 ) Foreign currency and other 34 15 43 92 Balance as of June 30, 2017 $ 1,108 $ 518 $ 1,091 $ 2,717
Other Intangible Assets	Information regarding our other intangible assets is as follows: June 30, 2017 December 31, 2016 (in millions) Carrying Amount Accumulated Amortization Net Intangibles Carrying Amount Accumulated Amortization Net Intangibles Customer and distributor relationships $ 906 $ (205 ) $ 701 $ 891 $ (168 ) $ 723 Proprietary technology and patents 158 (69 ) 89 156 (61 ) 95 Trademarks 142 (34 ) 108 139 (23 ) 116 Software 258 (136 ) 122 218 (118 ) 100 Other 25 (18 ) 7 26 (13 ) 13 Indefinite-lived intangibles 157 — 157 154 — 154 Other Intangibles $ 1,646 $ (462 ) $ 1,184 $ 1,584 $ (383 ) $ 1,201

Derivative Financial Instrume33

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Effect of derivative financial instruments	The table below presents the effect of our derivative financial instruments on the Condensed Consolidated Income Statements and Statements of Comprehensive Income. Three Months Ended Six Months Ended June 30, June 30, (in millions) 2017 2016 2017 2016 Cash Flow Hedges Foreign Exchange Contracts Amount of gain (loss) recognized in OCI (a) $ 3 $ (4 ) $ 5 $ — Amount of gain reclassified from OCI into revenue (a) (1 ) (1 ) (1 ) — Amount of (gain) loss reclassified from OCI into cost of revenue (a) — — 1 (1 ) Net Investment Hedges Cross Currency Swaps Amount of gain (loss) recognized in OCI (a) $ (23 ) $ 11 $ (31 ) $ — Foreign Currency Denominated Debt Amount of gain (loss) recognized in OCI (a) $ (34 ) $ 10 $ (48 ) $ (5 ) (a) Effective portion
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) June 30, December 31, Derivatives designated as hedging instruments Assets Cash Flow Hedges Other current assets $ 3 $ — Liabilities Cash Flow Hedges Other current liabilities $ (1 ) $ — Net Investment Hedges Other non-current liabilities $ (40 ) $ (6 )

Accrued and Other Current Lia34

Accrued and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2017
Payables and Accruals [Abstract]
Accrued and Other Current Liabilities	The components of total accrued and other current liabilities are as follows: (in millions) June 30, December 31, Compensation and other employee benefits $ 182 $ 182 Customer-related liabilities 99 80 Accrued taxes 66 63 Accrued warranty costs 58 64 Other accrued liabilities 110 132 Total accrued and other current liabilities $ 515 $ 521

Credit Facilities and Debt (Tab

Credit Facilities and Debt (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Schedule of Credit Facilities and Long-Term Debt	Total debt outstanding is summarized as follows: (in millions) June 30, December 31, 4.875% Senior Notes due 2021 (a) $ 600 $ 600 2.250% Senior Notes due 2023 (a) 571 522 3.250% Senior Notes due 2026 (a) 500 500 4.375% Senior Notes due 2046 (a) 400 400 Commercial paper 99 65 Research and development facility agreement 42 38 Research and development finance contract 120 110 Term loan 103 157 Debt issuance costs and unamortized discount (b) (24 ) (24 ) Total debt 2,411 2,368 Less: short-term borrowings and current maturities of long-term debt 243 260 Total long-term debt $ 2,168 $ 2,108 (a) The fair value of our Senior Notes 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 $650 million and $651 million as of June 30, 2017 and December 31, 2016 , respectively. The fair value of our Senior Notes due 2023 was $609 million and $555 million as of June 30, 2017 and December 31, 2016, respectively. The fair value of our Senior Notes due 2026 was $500 million and $487 million as of June 30, 2017 and December 31, 2016, respectively.The fair value of our Senior Notes due 2046 was $416 million and $397 million as of June 30, 2017 and December 31, 2016, respectively. (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.

Postretirement Benefit Plans (T

Postretirement Benefit Plans (Tables)	6 Months Ended
	Jun. 30, 2017
Retirement Benefits [Abstract]
Components of net periodic benefit cost and other amounts recognized in other comprehensive income	The components of net periodic benefit cost for our defined benefit pension plans are as follows: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2017 2016 2017 2016 Domestic defined benefit pension plans: Service cost $ 1 $ 1 $ 2 $ 1 Interest cost 1 1 2 2 Expected return on plan assets (1 ) (1 ) (3 ) (2 ) Amortization of net actuarial loss — — 1 1 Net periodic benefit cost $ 1 $ 1 $ 2 $ 2 International defined benefit pension plans: Service cost $ 3 $ 2 $ 6 $ 5 Interest cost 5 6 10 12 Expected return on plan assets (8 ) (8 ) (16 ) (17 ) Amortization of net actuarial loss 2 2 4 4 Net periodic benefit cost $ 2 $ 2 $ 4 $ 4 Total net periodic benefit cost $ 3 $ 3 $ 6 $ 6

Share-Based Compensation Plans

Share-Based Compensation Plans (Tables)	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of restricted stock activity	The following is a summary of restricted stock unit activity for the six months ended June 30, 2017 . The fair value of the restricted stock units is equal to the closing share price on the date of the grant. Share units (in thousands) Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2017 899 $ 37.67 Granted 332 49.26 Vested (353 ) 38.27 Forfeited (42 ) 40.74 Outstanding at June 30, 2017 836 $ 36.05
Summary of performance based share grants	The following is a summary of Return on Invested Capital ("ROIC") performance share unit grants for the six months ended June 30, 2017 . The fair value of the ROIC performance share units is equal to the closing share price on the date of the grant. Share units (in thousands) Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2017 250 $ 37.11 Granted 110 48.33 Vested — — Forfeited (67 ) 38.40 Outstanding at June 30, 2017 293 $ 41.01 TSR Performance Share Units Grants The following is a summary of our Total Shareholder Return ("TSR") performance share unit grants for the six months ended June 30, 2017 . Share units (in thousands) Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2017 108 $ 46.15 Granted 110 45.43 Vested — — Forfeited (9 ) 44.14 Outstanding at June 30, 2017 209 $ 47.20
Summary of the changes in outstanding stock options	The following is a summary of the changes in outstanding stock options for the six months ended June 30, 2017 . Share units (in thousands) Weighted Average Exercise Price / Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding at January 1, 2017 2,126 $ 33.71 6.9 Granted 498 48.33 Exercised (217 ) 31.70 Forfeited and expired (47 ) 42.00 Outstanding at June 30, 2017 2,360 $ 36.81 7.2 $ 44 Options exercisable at June 30, 2017 1,423 $ 32.89 6.0 $ 32 Vested and expected to vest as of June 30, 2017 2,239 $ 36.32 7.1 $ 43
Stock option valuation assumptions	The following are weighted-average assumptions for 2017 grants. Volatility 25.40 % Risk-free interest rate 2.07 % Dividend yield 1.49 % Expected term (in years) 5.1 Weighted-average fair value / share $ 10.65
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 2017 grants. Volatility 30.5 % Risk-free interest rate 1.51 % Dividend yield 1.49 %

Accumulated Other Comprehensi38

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table provides the components of accumulated other comprehensive income (loss) for the three months ended June 30, 2017: (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at April 1, 2017 $ (103 ) $ (175 ) $ 2 $ (276 ) Foreign currency translation adjustment 30 — — 30 Tax on foreign currency translation adjustment 22 — — 22 Amortization of net actuarial loss on postretirement benefit plans into: Selling, general and administrative expenses — 1 — 1 Other non-operating income — 1 — 1 Income tax impact on amortization of postretirement benefit plan items — — — — Unrealized gain on derivative hedge agreements — — 3 3 Reclassification of unrealized gain on derivative hedge agreements into revenue — — (1 ) (1 ) Balance at June 30, 2017 $ (51 ) $ (173 ) $ 4 $ (220 ) The following table provides the components of accumulated other comprehensive income (loss) for the six months ended June 30, 2017 : (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at January 1, 2017 $ (140 ) $ (177 ) $ (1 ) $ (318 ) Foreign currency translation adjustment 59 — — 59 Tax on foreign currency translation adjustment 30 — — 30 Amortization of net actuarial loss on postretirement benefit plans into: Cost of revenue — 1 — 1 Selling, general and administrative expenses — 3 — 3 Other non-operating income — 1 — 1 Income tax impact on amortization of postretirement benefit plan items — (1 ) — (1 ) Unrealized gain on derivative hedge agreements — — 5 5 Reclassification of unrealized loss on derivative hedge agreements into cost of revenue — — 1 1 Reclassification of unrealized gain on derivative hedge agreements into revenue — — (1 ) (1 ) Balance at June 30, 2017 $ (51 ) $ (173 ) $ 4 $ (220 )

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2017
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) 2017 2016 Warranty accrual – January 1 $ 99 $ 33 Net charges for product warranties in the period 17 13 Settlement of warranty claims (24 ) (15 ) Foreign currency and other 2 1 Warranty accrual - June 30 $ 94 $ 32

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Financial information for each reportable segment	Additionally, we have Regional selling locations, which consist primarily of selling and marketing organizations and related support services, that offer products and services across 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 2016 Annual Report). The following tables contain financial information for each reportable segment: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2017 2016 2017 2016 Revenue: Water Infrastructure $ 482 $ 484 $ 901 $ 924 Applied Water 361 366 694 699 Sensus & Analytics 321 82 640 156 Total $ 1,164 $ 932 $ 2,235 $ 1,779 Operating Income: Water Infrastructure $ 74 $ 66 $ 114 $ 117 Applied Water 49 51 85 90 Sensus & Analytics 29 4 54 7 Corporate and other (13 ) (12 ) (28 ) (26 ) Total operating income $ 139 $ 109 $ 225 $ 188 Interest expense $ 21 $ 20 $ 41 $ 34 Other non-operating income 3 1 2 1 Gain from sale of business — — 5 — Income before taxes $ 121 $ 90 $ 191 $ 155 Depreciation and Amortization: Water Infrastructure $ 15 $ 16 $ 31 $ 33 Applied Water 6 6 12 12 Sensus & Analytics 30 5 61 10 Regional selling locations (a) 4 4 8 6 Corporate and other 2 2 4 4 Total $ 57 $ 33 $ 116 $ 65 Capital Expenditures: Water Infrastructure $ 13 $ 13 $ 27 $ 32 Applied Water 3 3 10 11 Sensus & Analytics 15 2 32 2 Regional selling locations (b) 3 5 8 15 Corporate and other — 1 — 2 Total $ 34 $ 24 $ 77 $ 62 (a) Depreciation and amortization expense incurred by the Regional selling locations was included in an overall allocation of Regional selling location costs to the segments; however, a certain portion of that expense was not specifically identified to a segment. That expense is captured in this Regional selling location line. (b) Represents capital expenditures incurred by the Regional selling locations not allocated to the segments.
Total assets for each reportable segment	The following table contains the total assets for each reportable segment: (in millions) June 30, December 31, Water Infrastructure $ 1,218 $ 1,179 Applied Water 1,010 990 Sensus & Analytics 3,200 3,102 Regional selling locations (a) 1,057 965 Corporate and other (b) 222 238 Total $ 6,707 $ 6,474 (a) The Regional selling locations have assets that consist primarily of cash, accounts receivable and inventory which are not allocated to the segments. (b) Corporate and other consists of items pertaining to our corporate headquarters function, which principally consist of cash, deferred tax assets, pension assets and certain property, plant and equipment.

Background and Basis of Prese41

Background and Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2017
Background and Basis of Presentation (Textual) [Abstract]
Number of operating segment	3

Recently Issued Accounting Pr42

Recently Issued Accounting Pronouncements (Textuals) (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reduction in retained earnings	$ (1,117)	$ (1,033)
Accounting Standards Update 2015-07
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reduction of prepaid tax assets	14
Increase in long-term deferred tax assets	3
Reduction in accrued taxes	4
Reduction in retained earnings	$ 7

Acquisitions and Divestitures43

Acquisitions and Divestitures (Textuals) (Details) $ in Millions	Feb. 17, 2017USD ($)	Oct. 31, 2016USD ($)	Feb. 01, 2016USD ($)employee	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Business Acquisition [Line Items]
Acquisition of business, net of cash acquired				$ 6	$ 70
Sensus & Analytics
Business Acquisition [Line Items]
Acquisition price		$ 1,766
Acquisition of business, net of cash acquired		$ 1,710		$ 6
Tax valuation release						$ 16
Reduction to warranty expense						27
Tideland
Business Acquisition [Line Items]
Acquisition price			$ 70
Number of Employees at Acquired Business | employee			160
UK and Poland Based Membranes Business | Divested Businesses
Business Acquisition [Line Items]
Consideration for divestiture	$ 11
Gain on sale of business	$ 5
Revenue from divested business						$ 8

Acquisitions and Divestitures44

Acquisitions and Divestitures (Purchase Price Allocation) (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016	Oct. 31, 2016
Business Acquisition [Line Items]
Goodwill	$ 2,717	$ 2,632
Sensus & Analytics
Business Acquisition [Line Items]
Cash			$ 56
Receivables			104
Inventories			79
Prepaid and other current assets			20
Property, plant and equipment			181
Intangible assets			795
Other long-term assets			6
Accounts payable			(69)
Accrued and other current liabilities			(91)
Deferred income tax liabilities			(212)
Accrued post retirement benefits			(84)
Other non-current accrued liabilities			(60)
Total identifiable net assets			725
Goodwill			1,058
Non-controlling interest			(17)
Total consideration			$ 1,766

Acquisitions and Divestitures45

Acquisitions and Divestitures (Summary of Intangible Assts Acquired) (Details) - Sensus & Analytics - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Oct. 31, 2016
Business Acquisition [Line Items]
Intangible assets		$ 795
Customer and Distributor Relationships
Business Acquisition [Line Items]
Intangible assets		556
Customer and Distributor Relationships | Minimum
Business Acquisition [Line Items]
Weighted-average useful life	2 years
Customer and Distributor Relationships | Maximum
Business Acquisition [Line Items]
Weighted-average useful life	18 years
Tradenames
Business Acquisition [Line Items]
Intangible assets		98
Tradenames | Minimum
Business Acquisition [Line Items]
Weighted-average useful life	10 years
Tradenames | Maximum
Business Acquisition [Line Items]
Weighted-average useful life	25 years
Internally Developed Network Software
Business Acquisition [Line Items]
Weighted-average useful life	7 years
Intangible assets		60
Technology
Business Acquisition [Line Items]
Intangible assets		39
Technology | Minimum
Business Acquisition [Line Items]
Weighted-average useful life	5 years
Technology | Maximum
Business Acquisition [Line Items]
Weighted-average useful life	15 years
Other
Business Acquisition [Line Items]
Intangible assets		18
Other | Minimum
Business Acquisition [Line Items]
Weighted-average useful life	1 year
Other | Maximum
Business Acquisition [Line Items]
Weighted-average useful life	16 years
FCC Licenses
Business Acquisition [Line Items]
Intangible assets		$ 24

Acquisitions and Divestitures46

Acquisitions and Divestitures (Summary of Pro Forma Information) (Details) - Sensus & Analytics - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Business Acquisition [Line Items]
Revenue	$ 1,167	$ 2,242
Net income	$ 85	$ 183

Restructuring Charges (Restruct

Restructuring Charges (Restructuring Charges) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Restructuring Cost and Impairment Charge
Severance and other charges	$ 6	$ 6	$ 14	$ 12
Reversal of restructuring accruals	0	0	(1)	0
Restructuring charges	6	6	13	12
Asset impairment	0	0	5	0
Total restructuring and asset impairment charges	6	6	18	12
Water Infrastructure
Restructuring Cost and Impairment Charge
Restructuring charges	3	5	5	7
Applied Water
Restructuring Cost and Impairment Charge
Restructuring charges	2	1	10	3
Asset impairment	5
Sensus & Analytics
Restructuring Cost and Impairment Charge
Restructuring charges	1	0	3	0
Corporate Segment
Restructuring Cost and Impairment Charge
Restructuring charges	$ 0	$ 0	$ 0	$ 2

Restructuring Charges (Accrual

Restructuring Charges (Accrual Rollfoward) (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Restructuring Reserve [Roll Forward]
Restructuring accruals - January 1				$ 15	$ 3
Restructuring charges		$ 6	$ 6	13	12
Cash payments				(17)	(6)
Foreign currency and other				0	0
Restructuring accruals - June 30		11	9	11	9
Water Infrastructure
Restructuring Reserve [Roll Forward]
Restructuring charges		3	5	5	7
Restructuring accruals - June 30		1	5	1	5
Applied Water
Restructuring Reserve [Roll Forward]
Restructuring charges		2	1	10	3
Restructuring accruals - June 30		4	1	4	1
Sensus & Analytics
Restructuring Reserve [Roll Forward]
Restructuring charges		1	0	3	0
Restructuring accruals - June 30		3	0	3	0
Regional Selling Locations
Restructuring Reserve [Roll Forward]
Restructuring accruals - June 30	[1]	3	1	3	1
Corporate Segment
Restructuring Reserve [Roll Forward]
Restructuring charges		0	0	0	2
Restructuring accruals - June 30		$ 0	$ 2	$ 0	$ 2
[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	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Restructuring and Related Cost, Number of Positions Eliminated [Roll Forward]
Planned reductions - January 1	188	82
Additional planned reductions	105	223
Actual reductions and reversals	(185)	(203)
Planned reductions - June 30	108	102

Restructuring Charges (Textuals

Restructuring Charges (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 6	$ 6	$ 13	$ 12
Asset Impairment Charges	0	0	5	0
Applied Water
Restructuring Cost and Reserve [Line Items]
Restructuring charges	2	$ 1	$ 10	$ 3
Asset Impairment Charges	$ 5

Restructuring Charges (Estimate

Restructuring Charges (Estimated Restructuring Costs) (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
2017 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	$ 21
Restructuring costs incurred during period	4	$ 2
Total expected costs remaining	15
2016 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	38
Restructuring costs incurred during period	2	5	$ 29
Total expected costs remaining	2
Operating Segments | Water Infrastructure | 2017 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	14
Restructuring costs incurred during period	3	0
Total expected costs remaining	11
Operating Segments | Water Infrastructure | 2016 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	13
Restructuring costs incurred during period	0	2	11
Total expected costs remaining	0
Operating Segments | Applied Water | 2017 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	6
Restructuring costs incurred during period	1	1
Total expected costs remaining	4
Operating Segments | Applied Water | 2016 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	13
Restructuring costs incurred during period	1	2	10
Total expected costs remaining	0
Operating Segments | Sensus & Analytics | 2017 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	1
Restructuring costs incurred during period	0	1
Total expected costs remaining	0
Operating Segments | Sensus & Analytics | 2016 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	10
Restructuring costs incurred during period	1	1	6
Total expected costs remaining	2
Corporate | 2017 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	0
Restructuring costs incurred during period	0	0
Total expected costs remaining	0
Corporate | 2016 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	2
Restructuring costs incurred during period	0	$ 0	$ 2
Total expected costs remaining	$ 0

Income Taxes (Textuals) (Detail

Income Taxes (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Taxes (Textual) [Abstract]
Income tax provision	$ 21	$ 19	$ 35	$ 18
Effective tax rate	16.80%	21.60%	18.10%	11.80%
Unrecognized tax benefits	$ 68		$ 68
Interest accrued for unrecognized tax benefits	$ 3		$ 3

Earnings Per Share (Calculation

Earnings Per Share (Calculations for EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Basic and diluted net earnings per share:
Net income attributable to Xylem (in usd)		$ 99	$ 71	$ 155	$ 137
Shares
Weighted average common shares outstanding		179,571	179,020	179,557	178,790
Add: Participating securities	[1]	28	46	31	38
Weighted average common shares outstanding — Basic		179,599	179,066	179,588	178,828
Plus incremental shares from assumed conversions:
Weighted average common shares outstanding — Diluted		180,601	179,890	180,626	179,601
Basic earnings per share (usd per share)		$ 0.55	$ 0.39	$ 0.87	$ 0.77
Diluted earnings per share (usd per share)		$ 0.55	$ 0.39	$ 0.86	$ 0.76
Stock Options
Plus incremental shares from assumed conversions:
Dilutive effect of common shares	[2]	640	459	600	396
Restricted Stock
Plus incremental shares from assumed conversions:
Dilutive effect of common shares	[2]	362	365	438	377
[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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Stock Options
Incremental shares from stock options and restricted stock:
Antidilutive securities (in shares)	1,854	2,068	1,813	2,161
Restricted Stock
Incremental shares from stock options and restricted stock:
Antidilutive securities (in shares)	464	582	427	591
Performance Based Shares
Incremental shares from stock options and restricted stock:
Antidilutive securities (in shares)	530	409	467	334

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Inventories
Finished goods	$ 233	$ 220
Work in process	52	42
Raw materials	269	260
Total inventories	$ 554	$ 522

Property, Plant and Equipment56

Property, Plant and Equipment (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment
Property, plant and equipment, gross	$ 1,525	$ 1,438
Less accumulated depreciation	898	822
Total property, plant and equipment, net	627	616
Land, buildings and improvements
Property, Plant and Equipment
Property, plant and equipment, gross	317	299
Machinery and equipment
Property, Plant and Equipment
Property, plant and equipment, gross	774	731
Equipment held for lease or rental
Property, Plant and Equipment
Property, plant and equipment, gross	233	218
Furniture and fixtures
Property, Plant and Equipment
Property, plant and equipment, gross	104	95
Construction work in progress
Property, Plant and Equipment
Property, plant and equipment, gross	77	76
Other
Property, Plant and Equipment
Property, plant and equipment, gross	$ 20	$ 19

Property, Plant and Equipment57

Property, Plant and Equipment (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Property Plant And Equipment (Textual) [Abstract]
Depreciation expense	$ 27	$ 21	$ 55	$ 41

Goodwill and Other Intangible58

Goodwill and Other Intangible Assets (Goodwill Rollforward) (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2017		$ 2,632
Divested/Acquired		(7)
Foreign currency and other		92
Balance as of June 30, 2017	$ 2,717	2,717
Water Infrastructure
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2017		1,074
Divested/Acquired		0
Foreign currency and other		34
Balance as of June 30, 2017	1,108	1,108
Applied Water
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2017		505
Divested/Acquired		(2)
Foreign currency and other		15
Balance as of June 30, 2017	518	518
Sensus & Analytics
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2017		1,053
Divested/Acquired	(5)
Foreign currency and other	43
Balance as of June 30, 2017	$ 1,091	$ 1,091

Goodwill and Other Intangible59

Goodwill and Other Intangible Assets (Summary of Intangible Assets) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Goodwill and Other Intangible Assets
Accumulated Amortization	$ (462)		$ (462)		$ (383)
Intangible Assets Gross, Carrying Amount	1,646		1,646		1,584
Intangible Assets, Net Intangibles	1,184		1,184		1,201
Amortization	30	$ 12	61	$ 24
Customer and distributor relationships
Goodwill and Other Intangible Assets
Carrying Amount	906		906		891
Accumulated Amortization	(205)		(205)		(168)
Net Intangibles	701		701		723
Proprietary technology and patents
Goodwill and Other Intangible Assets
Carrying Amount	158		158		156
Accumulated Amortization	(69)		(69)		(61)
Net Intangibles	89		89		95
Trademarks
Goodwill and Other Intangible Assets
Carrying Amount	142		142		139
Accumulated Amortization	(34)		(34)		(23)
Net Intangibles	108		108		116
Software
Goodwill and Other Intangible Assets
Carrying Amount	258		258		218
Accumulated Amortization	(136)		(136)		(118)
Net Intangibles	122		122		100
Other
Goodwill and Other Intangible Assets
Carrying Amount	25		25		26
Accumulated Amortization	(18)		(18)		(13)
Net Intangibles	7		7		13
Indefinite-lived intangibles
Goodwill and Other Intangible Assets
Accumulated Amortization	0		0		0
Indefinite-lived intangibles	$ 157		$ 157		$ 154

Goodwill and Other Intangible60

Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense related to finite-lived intangible assets	$ 30	$ 12	$ 61	$ 24
Asset Impairment Charges	$ 4

Derivative Financial Instrume61

Derivative Financial Instruments (Effect of Deriative Instruments on Income Statement and Statement of Comprehensive Income) (Details) - USD ($) $ in Millions		3 Months Ended				6 Months Ended
		Jun. 30, 2017		Jun. 30, 2016		Jun. 30, 2017	Jun. 30, 2016
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI (a)		$ (3)		$ 4		$ (5)	$ 0
Reclassification out of Accumulated Other Comprehensive Income | Foreign Exchange Contract
Derivative Financial Instruments
Amount of gain reclassified from OCI into revenue (a)	[1]	(1)		(1)		(1)	0
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 gain (loss) recognized in OCI (a)	[1]	3		(4)		5	0
Cash Flow Hedging [Member] | Cross Currency Swaps
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI (a)		(23)	[1]	11	[1]	31	0	[1]
Cash Flow Hedging [Member] | Foreign Currency Denominated Debt
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI (a)	[1]	$ (34)		$ 10		$ (48)	$ (5)
[1]	Effective portion

Derivative Financial Instrume62

Derivative Financial Instruments (Balance Sheet Location of Derivative Instruments) (Details) - Derivatives designated as hedging instruments - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Other current assets
Derivatives, Fair Value
Assets	$ 3	$ 0
Other current liabilities
Derivatives, Fair Value
Cash Flow Hedges	1	0
Other non-current liabilities
Derivatives, Fair Value
Net Investment Hedges	(40)	$ (6)
Long-term debt
Derivatives, Fair Value
Net Investment Hedges	$ 566

Derivative Financial Instrume63

Derivative Financial Instruments (Details Textual) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)	Mar. 11, 2016USD ($)	Mar. 11, 2016EUR (€)
Derivative [Line Items]
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months		$ 4		$ 4
Foreign Exchange Contract
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		124		124
Derivatives designated as hedging instruments | Sell EUR Buy SEK
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		51		51
Derivatives designated as hedging instruments | Sell USD Buy EUR [Member]
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		29		29
Derivatives designated as hedging instruments | Sell EUR Buy PLN
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		13		13
Derivatives designated as hedging instruments | Sell GBP Buy EUR
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		16		16
Derivatives designated as hedging instruments | Cross Currency Swaps
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		427		427		$ 391
Long-term debt | Derivatives designated as hedging instruments
Derivative Financial Instruments (Textual) [Abstract]
Net Investment Hedges		566		566
Senior Notes Due 2023, 2.250%
Derivative [Line Items]
Long-term Debt, Fair Value		609		609		$ 555
Senior Notes Due 2023, 2.250% | Senior Notes
Derivative Financial Instruments (Textual) [Abstract]
Interest on notes due							2.25%	2.25%
Face amount							$ 500	€ 500,000,000
Reclassification out of Accumulated Other Comprehensive Income | Foreign Exchange Contract
Derivative [Line Items]
Revenues	[1]	$ 1	$ 1	$ 1	$ 0
[1]	Effective portion

Accrued and Other Current Lia64

Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Accrued and Other Current Liabilities
Compensation and other employee benefits	$ 182	$ 182
Customer-related liabilities	99	80
Accrued taxes	66	63
Accrued warranty costs	58	64
Other accrued liabilities	110	132
Total accrued and other current liabilities	$ 515	$ 521

Credit Facilities and Debt (Sum

Credit Facilities and Debt (Summary of Debt Outstanding) (Details) - USD ($) $ in Millions		Jun. 30, 2017	Dec. 31, 2016
Credit Facilities and Long-Term Debt :
Debt issuance costs and unamortized discount	[1]	$ (24)	$ (24)
Long-term debt		2,168	2,108
Total debt		2,411	2,368
Short-term borrowings and current maturities of long-term debt		243	260
Senior Notes Due 2021, 4.875%
Credit Facilities and Long-Term Debt :
Senior Notes Due	[2]	600	600
Senior Notes Due 2023, 2.250%
Credit Facilities and Long-Term Debt :
Senior Notes Due	[2]	571	522
Senior Notes due 2026
Credit Facilities and Long-Term Debt :
Senior Notes Due	[2]	500	500
Senior Notes due 2046
Credit Facilities and Long-Term Debt :
Senior Notes Due	[2]	400	400
Commercial paper
Credit Facilities and Long-Term Debt :
Senior Notes Due		99	65
Research and development finance contract
Credit Facilities and Long-Term Debt :
Senior Notes Due		120	110
Term loan
Credit Facilities and Long-Term Debt :
Senior Notes Due		103	157
Research and development facility agreement
Credit Facilities and Long-Term Debt :
Research and development facility agreement		$ 42	$ 38
[1]	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.
[2]	The fair value of our Senior Notes 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 $650 million and $651 million as of June 30, 2017 and December 31, 2016, respectively. The fair value of our Senior Notes due 2023 was $609 million and $555 million as of June 30, 2017 and December 31, 2016, respectively. The fair value of our Senior Notes due 2026 was $500 million and $487 million as of June 30, 2017 and December 31, 2016, respectively.The fair value of our Senior Notes due 2046 was $416 million and $397 million as of June 30, 2017 and December 31, 2016, respectively.

Credit Facilities and Debt (Tex

Credit Facilities and Debt (Textuals) (Details)

Mar. 27, 2015USD ($)

Sep. 20, 2011USD ($)

Jun. 30, 2017USD ($)

Jun. 30, 2017USD ($)

Sep. 30, 2016

Dec. 31, 2016USD ($)

Oct. 28, 2016USD ($)

Oct. 28, 2016EUR (€)

Oct. 24, 2016USD ($)

Oct. 24, 2016EUR (€)

Oct. 11, 2016USD ($)

Mar. 11, 2016USD ($)

Mar. 11, 2016EUR (€)

Dec. 03, 2015USD ($)

Dec. 03, 2015EUR (€)

Debt Instrument

Commercial Paper

$ 600,000,000

$ 600,000,000

Commercial paper outstanding

$ 65,000,000

Weighted average interest rate

1.44%

1.12%

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

3.50

Research and development facility agreement

Debt Instrument

Research and development facility agreement

$ 42,000,000

$ 42,000,000

$ 38,000,000

European Investment Bank - Research and Development Finance Contract [Member]

Debt Instrument

Variable rate on debt

0.59%

Term of debt

11 years

Senior Notes

Debt Instrument

Redemption price percentage

101.00%

Line of Credit

Debt Instrument

Face amount

$ 119,962,500

€ 105,000,000

$ 171,375,000

€ 150,000,000

Senior Notes Due 2016, 3.550%

Debt Instrument

Interest on notes due

3.55%

Face amount

$ 600,000,000

Senior Notes Due 2021, 4.875%

Debt Instrument

Fair value of senior notes due

650,000,000

$ 650,000,000

651,000,000

Interest on notes due

4.875%

Senior Notes Due

[1]

600,000,000

600,000,000

600,000,000

Face amount

$ 600,000,000

Senior Notes Due 2023, 2.250%

Debt Instrument

Fair value of senior notes due

609,000,000

609,000,000

555,000,000

Senior Notes Due

[1]

571,000,000

$ 571,000,000

522,000,000

Senior Notes Due 2023, 2.250% | Senior Notes

Debt Instrument

Interest on notes due

2.25%

2.25%

Face amount

$ 500,000,000

€ 500,000,000

Research and development facility agreement

Debt Instrument

Face amount

$ 137,100,000

€ 120,000,000

Term of debt

5 years

Research and development facility agreement | Loans Payable

Debt Instrument

Term of debt

12 years

Senior Notes due 2026

Debt Instrument

Fair value of senior notes due

500,000,000

$ 500,000,000

487,000,000

Interest on notes due

3.25%

Senior Notes Due

[1]

500,000,000

500,000,000

500,000,000

Face amount

$ 500,000,000

Senior Notes due 2046

Debt Instrument

Fair value of senior notes due

416,000,000

416,000,000

397,000,000

Interest on notes due

4.375%

Senior Notes Due

[1]

400,000,000

400,000,000

400,000,000

Face amount

$ 400,000,000

Research and development finance contract

Debt Instrument

Senior Notes Due

120,000,000

120,000,000

110,000,000

Term loan

Debt Instrument

Senior Notes Due

$ 103,000,000

$ 103,000,000

$ 157,000,000

EURIBOR | Term loan | Line of Credit

Debt Instrument

Variable rate on debt

0.35%

[1]

The fair value of our Senior Notes 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 $650 million and $651 million as of June 30, 2017 and December 31, 2016, respectively. The fair value of our Senior Notes due 2023 was $609 million and $555 million as of June 30, 2017 and December 31, 2016, respectively. The fair value of our Senior Notes due 2026 was $500 million and $487 million as of June 30, 2017 and December 31, 2016, respectively.The fair value of our Senior Notes due 2046 was $416 million and $397 million as of June 30, 2017 and December 31, 2016, respectively.

Postretirement Benefit Plans (S

Postretirement Benefit Plans (Summary of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Net periodic benefit cost:
Amortization of net actuarial loss	$ 1	$ 1	$ 1	$ 1
Net periodic benefit cost	3	3	6	6
Domestic defined benefit pension plans
Net periodic benefit cost:
Service cost	1	1	2	1
Interest cost	1	1	2	2
Expected return on plan assets	(1)	(1)	(3)	(2)
Amortization of net actuarial loss	0		1	1
Net periodic benefit cost	1	1	2	2
International defined benefit pension plans
Net periodic benefit cost:
Service cost	3	2	6	5
Interest cost	5	6	10	12
Expected return on plan assets	(8)	(8)	(16)	(17)
Amortization of net actuarial loss	2	2	4	4
Net periodic benefit cost	$ 2	$ 2	$ 4	$ 4

Postretirement Benefit Plans 68

Postretirement Benefit Plans (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Other postretirement benefit expense (less than $1 million for the three months ended June 30, 2017)	$ 1	$ 1	$ 1	$ 2
Amortization of net actuarial loss (less than $1 million)	1	$ 1	1	1
Employer contribution to defined benefit plan			13	$ 14
Minimum
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Additional contributions	9		9
Maximum
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Additional contributions	$ 15		$ 15

Share-Based Compensation Plan69

Share-Based Compensation Plans (Textuals) (Details) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation	$ 5	$ 5	$ 11	$ 10
Shares Awarded (in shares)			498
Stock-Based Compensation Plans (Textual) [Abstract]
Proceeds from exercise of employee stock options			$ 7	$ 16
Aggregate intrinsic value of outstanding stock options	44		44
Aggregate intrinsic value of exercisable stock options	32		32
Total intrinsic value of options exercised			4.5
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Unamortized compensation expense	8		$ 8
Weighted average period			2 years 1 month 6 days
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Unamortized compensation expense	25		$ 25
Weighted average period			2 years 1 month 6 days
Shares Awarded (in shares)			332
Performance Based Shares
Share-based Compensation Arrangement by Share-based Payment Award
Unamortized compensation expense	$ 15		$ 15
Weighted average period			2 years 2 months 12 days

Share-Based Compensation Plan70

Share-Based Compensation Plans (Summary of Stock Options Grant) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Summary of the changes in outstanding stock options
Outstanding, beginning of period (in shares)	2,126
Granted (in shares)	498
Exercised (in shares)	(217)
Forfeited (in shares)	(47)
Outstanding, end of period (in shares)	2,360	2,126
Options exercisable, ending of period (in shares)	1,423
Vested and expected, end of period (in shares)	2,239
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)	$ 33.71
Granted (in usd per share)	48.33
Exercised (in usd per share)	31.70
Forfeited (in usd per share)	42
Outstanding, end of period (in usd per share)	36.81	$ 33.71
Options exercisable, end of period (in usd per share)	32.89
Vested and expected, end of period (in usd per share)	$ 36.32
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 10 months 24 days
Aggregate intrinsic value of outstanding stock options	$ 44
Options exercisable, end of period	6 years
Aggregate intrinsic value of exercisable stock options	$ 32
Vested and expected to vest, end of period	7 years 1 month 6 days
Aggregate intrinsic value, vested and expected to vest	$ 43

Share-Based Compensation Plan71

Share-Based Compensation Plans (Stock Option Fair Value Assumptions) (Details) - Stock Options	6 Months Ended
	Jun. 30, 2017$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility	25.40%
Risk-free interest rate	2.07%
Dividend yield	1.49%
Expected term (in years)	5 years 1 month
Weighted-average fair value / share (in usd per share)	$ 10.65

Share-Based Compensation Plan72

Share-Based Compensation Plans (Summary of Restricted Stock Unit Grants) (Details) - Restricted Stock [Member] shares in Thousands	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Summary of restricted stock activity
Outstanding, beginning of period (in shares) | shares	899
Granted (in shares) | shares	332
Vested (in shares) | shares	(353)
Forfeited (in shares) | shares	(42)
Outstanding, end of period (in shares) | shares	836
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	$ 37.67
Granted (in usd per share) | $ / shares	49.26
Vested (in usd per share) | $ / shares	38.27
Forfeited (in usd per share) | $ / shares	40.74
Outstanding, end of period (in usd per share) | $ / shares	$ 36.05

Share-Based Compensation Plan73

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	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Summary of performance share activity
Outstanding, beginning of period (in shares) | shares	250
Granted (in shares) | shares	110
Vested (in shares) | shares	0
Forfeited (in shares) | shares	(67)
Outstanding, end of period (in shares) | shares	293
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	$ 37.11
Granted (in usd per share) | $ / shares	48.33
Vested (in usd per share) | $ / shares	0
Forfeited (in usd per share) | $ / shares	38.40
Outstanding, end of period (in usd per share) | $ / shares	$ 41.01

Share-Based Compensation Plan74

Share-Based Compensation Plans (Summary of Performance-Based Share Grants) (Details) - Total Shareholder Return Performance-Based Shares - Performance Based Shares shares in Thousands	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Summary of performance share activity
Outstanding, beginning of period (in shares) | shares	108
Granted (in shares) | shares	110
Vested (in shares) | shares	0
Forfeited (in shares) | shares	(9)
Outstanding, end of period (in shares) | shares	209
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	$ 46.15
Granted (in usd per share) | $ / shares	45.43
Vested (in usd per share) | $ / shares	0
Forfeited (in usd per share) | $ / shares	44.14
Outstanding, end of period (in usd per share) | $ / shares	$ 47.20

Share-Based Compensation Plan75

Share-Based Compensation Plans (TSR Performance-Based Shares Fair Value Assumptions) (Details) - Total Shareholder Return Performance-Based Shares - Performance Based Shares shares in Thousands	6 Months Ended
	Jun. 30, 2017$ / 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	(9)
Volatility	30.50%
Risk-free interest rate	1.51%
Dividend yield	1.49%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares	$ 44.14

Capital Stock (Textuals) (Detai

Capital Stock (Textuals) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Aug. 24, 2015	Aug. 18, 2012
Equity, Class of Treasury Stock [Line Items]
Shares repurchased (in shares - less than 0.1 million for the three and six months ended June 30, 2017 outside the repurchase plans)	100,000	100,000	100,000	100,000
Shares repurchased (less than $1 million for the three months ended June 30, 2017 outside the repurchase plans)	$ 1,000,000	$ 1,000,000	$ 5,000,000	$ 3,000,000
2015 Stock Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount					$ 500,000,000
Shares repurchased (in shares - less than 0.1 million for the three and six months ended June 30, 2017 outside the repurchase plans)	100,000	0	100,000	0
Shares repurchased (less than $1 million for the three months ended June 30, 2017 outside the repurchase plans)	$ 7,000,000	$ 0	$ 7,000,000	$ 0
Remaining authorized amount of repurchase	$ 413,000,000		$ 413,000,000
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 for the three and six months ended June 30, 2017 outside the repurchase plans)	250,000	0	250,000	0
Shares repurchased (less than $1 million for the three months ended June 30, 2017 outside the repurchase plans)	$ 13,000,000	$ 0	$ 13,000,000	$ 0

Accumulated Other Comprehensi77

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			$ (318)
Foreign currency translation adjustment	$ 30	$ (29)	59	$ (17)
Ending balance	(220)		(220)
Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(276)		(318)
Foreign currency translation adjustment	30		59
Foreign currency gain reclassified into gain on sale of businesses	22		30
Income tax expense on amortization of postretirement benefit plan items	0		(1)
Unrealized gain on derivative hedge agreements	3		(5)
Ending balance	(220)		(220)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(103)		(140)
Foreign currency translation adjustment	30		59
Foreign currency gain reclassified into gain on sale of businesses	22		30
Income tax expense on amortization of postretirement benefit plan items	0		0
Unrealized gain on derivative hedge agreements	0		0
Ending balance	(51)		(51)
Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(175)		(177)
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		(1)
Unrealized gain on derivative hedge agreements	0		0
Ending balance	(173)		(173)
Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	2		(1)
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
Unrealized gain on derivative hedge agreements	3		(5)
Ending balance	4		4
Cost of revenue | Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:			1
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:			1
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:	1		3
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:	1		3
Selling, general and administrative expenses | Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	0		0
Other non-operating income
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	1		1
Other non-operating income | Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:			0
Other non-operating income | Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	1		1
Other non-operating income | 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		0
Revenue | Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements	0		0
Revenue | Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements	$ (1)		$ (1)

Commitments and Contingencies78

Commitments and Contingencies (Summary of Warranties) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Warranties
Warranty accrual – January 1	$ 99	$ 33
Net charges for product warranties in the period	17	13
Settlement of warranty claims	(24)	(15)
Foreign currency and other	2	1
Warranty accrual - June 30	$ 94	$ 32

Commitments and Contingencies79

Commitments and Contingencies (Details Textual) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Loss Contingency Accrual	$ 11	$ 11
Guarantee amounts	248	218
Estimated environmental matters	$ 4	$ 4

Segment Information (Summary of

Segment Information (Summary of Operations by Segment) (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Financial information for each reportable segment
Revenue		$ 1,164	$ 932	$ 2,235	$ 1,779
Operating income		139	109	225	188
Interest Expense		21	20	41	34
Other Nonoperating Income (Expense)		3	1	2	1
Gain from sale of business		0	0	5	0
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest		121	90	191	155
Depreciation and amortization		57	33	116	65
Capital expenditures		34	24	77	62
Water Infrastructure
Financial information for each reportable segment
Revenue		482	484	901	924
Operating income		74	66	114	117
Depreciation and amortization		15	16	31	33
Capital expenditures		13	13	27	32
Applied Water
Financial information for each reportable segment
Revenue		361	366	694	699
Operating income		49	51	85	90
Depreciation and amortization		6	6	12	12
Capital expenditures		3	3	10	11
Sensus & Analytics
Financial information for each reportable segment
Revenue		321	82	640	156
Operating income		29	4	54	7
Depreciation and amortization		30	5	61	10
Capital expenditures		15	2	32	2
Regional Selling Locations
Financial information for each reportable segment
Depreciation and amortization	[1]	4	4	8	6
Capital expenditures	[2]	3	5	8	15
Corporate and other
Financial information for each reportable segment
Operating income		(13)	(12)	(28)	(26)
Depreciation and amortization		2	2	4	4
Capital expenditures		$ 0	$ 1	$ 0	$ 2
[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 81

Segment Information (Summary of Assets by Segment) (Details) - USD ($) $ in Millions		Jun. 30, 2017	Dec. 31, 2016
Total assets for each reportable segment
Total assets		$ 6,707	$ 6,474
Water Infrastructure
Total assets for each reportable segment
Total assets		1,218	1,179
Applied Water
Total assets for each reportable segment
Total assets		1,010	990
Sensus & Analytics
Total assets for each reportable segment
Total assets		3,200	3,102
Regional Selling Locations
Total assets for each reportable segment
Total assets	[1]	1,057	965
Corporate and other
Total assets for each reportable segment
Total assets	[2]	$ 222	$ 238
[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)	6 Months Ended
	Jun. 30, 2017Segment
Segment Information (Textual) [Abstract]
Number of reportable segments	3