Xylem (XYL) 10-Q 31 Jul 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 27, 2018
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, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		179,617,701

Condensed Consolidated Income S

Condensed Consolidated Income Statements (Unaudited) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenues	$ 1,317	$ 1,164	$ 2,534	$ 2,235
Cost of revenue	798	707	1,555	1,366
Gross profit	519	457	979	869
Selling, general and administrative expenses	293	270	589	542
Research and development expenses	50	44	91	86
Restructuring and asset impairment charges, net	5	6	15	18
Operating income	171	137	284	223
Interest expense	21	21	42	41
Other non-operating income (expense), net	2	5	5	4
(Loss) gain from sale of business	(2)	0	(2)	5
Income before taxes	150	121	245	191
Income tax expense	35	21	51	35
Net income	115	100	194	156
Less: Net income attributable to non-controlling interests	0	1	0	1
Net income	$ 115	$ 99	$ 194	$ 155
Earnings per share:
Basic (usd per share)	$ 0.64	$ 0.55	$ 1.08	$ 0.87
Diluted (usd per share)	$ 0.64	$ 0.55	$ 1.07	$ 0.86
Weighted average number of shares:
Basic (in shares)	179,805	179,599	179,843	179,588
Diluted (in shares)	181,042	180,600	181,203	180,626
Dividends declared per share (usd per share)	$ 0.2100	$ 0.1800	$ 0.4200	$ 0.3600

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 115	$ 100	$ 194	$ 156
Other comprehensive income, before tax:
Foreign currency translation adjustment	(60)	30	(52)	59
Net change in derivative hedge agreements:
Unrealized (losses) gains	(9)	3	(9)	5
Amount of gain reclassified into net income	(1)	(1)	(2)	0
Net change in postretirement benefit plans:
Amortization of prior service credit	1	0
Amortization of net actuarial loss into net income	4	2	7	5
Settlement/Curtailment	0	0	1	0
Other comprehensive (loss) income, before tax	(67)	34	(57)	69
Income tax expense (benefit) related to items of other comprehensive income	20	(22)	10	(29)
Other comprehensive (loss) income, net of tax	(87)	56	(67)	98
Comprehensive income	$ 28	$ 156	$ 127	$ 254

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 321	$ 414
Receivables, less allowances for discounts and doubtful accounts of $31 and $35 in 2018 and 2017, respectively	1,019	956
Inventories	598	524
Prepaid and other current assets	168	177
Total current assets	2,106	2,071
Property, plant and equipment, net	643	643
Goodwill	2,996	2,768
Other intangible assets, net	1,269	1,168
Other non-current assets	218	210
Total assets	7,232	6,860
Current liabilities:
Accounts payable	580	549
Accrued and other current liabilities	536	551
Short-term borrowings and current maturities of long-term debt	361	0
Total current liabilities	1,477	1,100
Long-term debt	2,179	2,200
Accrued postretirement benefits	426	442
Deferred income tax liabilities	288	252
Other non-current accrued liabilities	333	347
Total liabilities	4,703	4,341
Commitments and contingencies (Note 18)
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	1,932	1,912
Retained earnings	1,359	1,227
Treasury stock – at cost 13.2 shares and 12.4 shares in 2018 and 2017, respectively	(486)	(428)
Accumulated other comprehensive loss	(294)	(210)
Total stockholders’ equity	2,513	2,503
Non-controlling interests	16	16
Total equity	2,529	2,519
Total liabilities and stockholders’ equity	$ 7,232	$ 6,860

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowances for discounts and doubtful accounts on receivables	$ 31	$ 35
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	750,000,000	750,000,000
Common Stock, shares issued	192,800,000	192,300,000
Treasury Stock, shares	13,200,000	12,400,000

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating Activities
Net income	$ 194	$ 156
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	58	55
Amortization	74	61
Share-based compensation	16	11
Restructuring and asset impairment charges	15	18
Loss (gain) from sale of business	2	(5)
Other, net	(7)	4
Payments for restructuring	(12)	(17)
Changes in assets and liabilities (net of acquisitions):
Changes in receivables	(68)	(70)
Changes in inventories	(87)	(13)
Changes in accounts payable	54	(19)
Other, net	(38)	(30)
Net Cash – Operating activities	201	151
Investing Activities
Capital expenditures	(111)	(77)
Acquisitions of businesses, net of cash acquired	(430)	(6)
Proceeds from sale of business	0	11
Other, net	(4)	(3)
Net Cash – Investing activities	(537)	(69)
Financing Activities
Short-term debt issued, net	437	33
Short-term debt repaid	(54)	(65)
Repurchase of common stock	(58)	(25)
Proceeds from exercise of employee stock options	4	7
Dividends paid	(76)	(65)
Other, net	(1)	0
Net Cash – Financing activities	252	(115)
Effect of exchange rate changes on cash	(9)	13
Net change in cash and cash equivalents	(93)	(20)
Cash and cash equivalents at beginning of year	414	308
Cash and cash equivalents at end of period	321	288
Cash paid during the period for:
Interest	46	46
Income taxes (net of refunds received)	$ 51	$ 47

Background and Basis of Present

Background and Basis of Presentation	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Background and Basis of Presentation	Background and Basis of Presentation Background Xylem Inc. ("Xylem" or the "Company") is a leading equipment and service provider for water and wastewater applications with a broad portfolio of products and services addressing the full cycle of water, from collection, distribution and use to the return of water to the environment. Xylem was incorporated in Indiana on May 4, 2011. Xylem operates in three segments, Water Infrastructure, Applied Water and Measurement & Control Solutions. 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 Measurement & Control Solutions 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 Measurement & Control Solutions segment's major products include smart metering, networked communications, measurement and control technologies, critical infrastructure technologies, software and services including cloud-based analytics, remote monitoring and data management, leak detection and pressure monitoring solutions 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, 2017 (" 2017 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 2017 Annual Report. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, postretirement obligations and assets, revenue recognition, income tax contingency accruals and valuation allowances, goodwill and indefinite lived intangible impairment testing and contingent liabilities. Actual results could differ from these estimates.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Pronouncements Not Yet Adopted In August 2017, the Financial Accounting Standards Board (“FASB”) issued amended guidance on hedging activities. The amendment better aligns a company’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying for hedging relationships and the presentation of hedge results. Specifically, the guidance: (1) Eliminates the concept of recognizing periodic hedge ineffectiveness for cash flow and net investment hedges; (2) Eliminates the benchmark interest rate concept of variable - rate instruments in cash flow hedges and allows companies to designate the contractually specified interest rate as the hedged risk; (3) Requires a company to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported; and (4) Provides the ability to perform subsequent hedge effectiveness tests qualitatively. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted with the effect of adoption reflected as of the beginning of the fiscal year of adoption. For cash flow and net investment hedges existing at the date of adoption, a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness is required. Other presentation and disclosure guidance is required only prospectively. 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. Recently Adopted Pronouncements In February 2018, the FASB issued new guidance on the reclassification of certain tax effects in Accumulated Other Comprehensive Income ("AOCI"). The guidance allows a reclassification from AOCI to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”). This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted. The guidance may be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. We early adopted this guidance effective the first quarter of 2018, and elected to reclassify the income tax effects of the Tax Act from AOCI to retained earnings. As a result of adopting the guidance, AOCI was reduced by $17 million and retained earnings increased by $17 million . This amount includes the effect of the change in the US federal corporate income tax rate. In March 2017, the FASB issued amended guidance on the 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 adopted this guidance effective the first quarter of 2018. The prior period consolidated income statements and segment results have been retrospectively adjusted in accordance with the new guidance. The impact to the presentation between operating income and other non-operating income within Xylem's Consolidated Income Statements was $2 million or less for each of the quarters of 2017 and 2016 and approximately $4 million for the year ended December 31, 2017.

Acquisitions and Divestitures

Acquisitions and Divestitures	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Acquisitions and Divestitures	Acquisitions and Divestitures 2018 Acquisitions and Divestitures Pure Technologies Ltd. On January 31, 2018, we acquired all the issued and outstanding shares of Pure Technologies Ltd. (“Pure”), a leader in intelligent leak detection and condition assessment solutions for water distribution networks for approximately $420 million , net of cash received. Acquisition costs of $4 million were reflected as a component of selling, general and administrative expenses in our Condensed Consolidated Income Statement. Pure’s results of operations were consolidated with the Company effective February 1, 2018 and are reflected in the Measurement & Control Solutions segment. The preliminary Pure purchase price allocation as of January 31, 2018 is shown in the following table. (in millions) Amount Cash $ 14 Receivables 23 Inventories 5 Prepaid and other current assets 2 Property, plant and equipment 22 Intangible assets 149 Other long-term assets 1 Accounts payable (3 ) Accrued and other current liabilities (12 ) Deferred income tax liabilities (27 ) Other non-current accrued liabilities (2 ) Total identifiable net assets 172 Goodwill 262 Total consideration $ 434 The fair values of Pure's 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 certain short term assets, 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 Pure and Xylem. All of the goodwill was assigned to the Measurement & Control Solutions segment and is not deductible for tax purposes. The preliminary estimate of the fair value of Pure 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 Pure acquisition: Category Life Amount (in millions) Customer Relationships 17 - 18 years $ 84 Technology 3 - 10 years 38 Tradenames 17 years 21 Internally Developed Software 3 years 6 Total $ 149 The following table summarizes, on an unaudited pro forma basis, the condensed combined results of operations of the Company for the three and six month periods ended June 30, 2018 and June 30, 2017, respectively, assuming the acquisition of Pure was made on January 1, 2017. (in millions) Three Months Six Months For the period ended June 30, 2018 2017 2018 2017 Revenue N/A $1,189 $2,539 $2,282 Net income N/A $98 $191 $152 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, 2017, 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 • Adjustments to interest expense to remove historical Pure 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 Pure. During the three months ended June 30, 2018 Pure had operating income of less than $1 million . During the six months ended June 30, 2018 Pure had an operating loss of $2 million . Other Acquisition Activity During the three months ended June 30, 2018 we had no acquisition activity. During the six months ended June 30, 2018 we spent approximately $10 million on other acquisition activity. 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

Restructuring Charges

Restructuring Charges	6 Months Ended
	Jun. 30, 2018
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, 2018 , we recognized restructuring charges of $5 million and $15 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 Measurement & Control Solutions and Water Infrastructure segments, as well as headcount reductions within our Applied Water segment. During the three and six months ended June 30, 2017 , we recognized restructuring charges of $6 million and $13 million . 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 Measurement and Control Solutions segment. 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) 2018 2017 2018 2017 By component: Severance and other charges $ 5 $ 6 $ 14 $ 14 Lease related charges — — 1 — Reversal of restructuring accruals — — — (1 ) Total restructuring charges $ 5 $ 6 $ 15 $ 13 Asset impairment — — — 5 Total restructuring and asset impairment charges $ 5 $ 6 $ 15 $ 18 By segment: Water Infrastructure $ 3 $ 3 $ 6 $ 5 Applied Water — 2 1 10 Measurement & Control Solutions 2 1 8 3 Corporate and other — — — — 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, 2018 and 2017 . (in millions) 2018 2017 Restructuring accruals - January 1 $ 7 $ 15 Restructuring charges 15 13 Cash payments (12 ) (17 ) Foreign currency and other — — Restructuring accruals - June 30 $ 10 $ 11 By segment: Water Infrastructure $ 2 $ 1 Applied Water 1 4 Measurement & Control Solutions 4 3 Regional selling locations (a) 2 3 Corporate and other 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. The following is a rollforward for the six months ended June 30, 2018 and 2017 of employee position eliminations associated with restructuring activities. 2018 2017 Planned reductions - January 1 47 188 Additional planned reductions 155 105 Actual reductions and reversals (103 ) (185 ) Planned reductions - June 30 99 108 The following table presents expected restructuring spend: (in millions) Water Infrastructure Applied Water Measurement & Control Solutions Corporate Total Actions Commenced in 2018: Total expected costs $ 8 $ 1 $ 8 $ — $ 17 Costs incurred during Q1 2018 2 1 5 — 8 Costs incurred during Q2 2018 2 — 2 — 4 Total expected costs remaining $ 4 $ — $ 1 $ — $ 5 Actions Commenced in 2017: Total expected costs $ 19 $ 12 $ 2 $ — $ 33 Costs incurred during 2017 5 4 2 — 11 Costs incurred during Q1 2018 1 — — — 1 Costs incurred during Q2 2018 1 — — — 1 Total expected costs remaining $ 12 $ 8 $ — $ — $ 20 Actions Commenced in 2016: Total expected costs $ 13 $ 14 $ 11 $ 2 $ 40 Costs incurred during 2016 11 10 6 2 29 Costs incurred during 2017 2 4 3 — 9 Costs incurred during Q1 2018 — — 1 — 1 Costs incurred during Q2 2018 — — — — — Total expected costs remaining $ — $ — $ 1 $ — $ 1 The Water Infrastructure, Applied Water, and Measurement & Control Solutions actions commenced in 2018 consist primarily of severance charges and are expected to continue through the end of 2018. The Water Infrastructure, Applied Water, and Measurement & Control Solutions actions commenced in 2017 consist primarily of severance charges and are expected to continue through the end of 2019. The Measurement & Control Solutions actions commenced in 2016 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 10

Revenue

Revenue	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue	Revenue As discussed in Note 2, "Recently Issued Accounting Pronouncements", Xylem adopted the new guidance on recognizing revenue from contracts with customers as of January 1, 2018. Xylem recognizes revenue in a manner that depicts the transfer of promised goods and services to customers in an amount that reflects the consideration to which it expects to be entitled to for providing those goods and services. For each arrangement with a customer, we identify the contract, the associated performance obligations within the contract, determine the transaction price of that contract, allocate the transaction price to each performance obligation and recognize revenue as each performance obligation is satisfied. The satisfaction of performance obligations in a contract is based upon when the customer obtains control over the asset. Depending on the nature of the performance obligation, control transfers either at a particular point in time, or over time which determines the recognition pattern of revenue. For product sales, other than long-term construction-type contracts, we recognize revenue once control has passed at a point in time, which is generally when products are shipped. In instances where contractual terms include a provision for customer acceptance, revenue is recognized when either (i) we have previously demonstrated that the product meets the specified criteria based on either seller or customer specified objective criteria or (ii) upon formal acceptance received from the customer where the product has not been previously demonstrated to meet customer specified objective criteria. We recognize revenue on product sales to channel partners, including resellers, distributors or value-added solution providers at the point in time when the risks and rewards, possession, and title have transferred to the customer, which usually occurs at the point of delivery. Revenue from performance obligations related to services is recognized over time, as the performance obligations are satisfied. In these instances, the customer consumes the benefit of the service as Xylem performs. Certain businesses also enter into long-term construction-type sales contracts where revenue is recognized over time. In these instances, revenue is recognized using a measure of progress that applies an input method based on costs incurred in relation to total estimated costs. If shipping and handling activities are performed after a customer obtains control of a good we account for the shipping and handling activities as activities to fulfill a promise to transfer a good. Shipping and handling related costs are accrued as revenue is recognized. For all contracts with customers, we determine the transaction price in the arrangement and allocate the transaction price to each performance obligation identified in the contract. Judgment is required to determine the appropriate unit of account, and we separate out the performance obligations if they are capable of being distinct and if they are distinct within the context of the contract. We base our allocation of the transaction price to the performance obligations on the relative standalone selling prices for the goods or services contained in a particular performance obligation. The standalone selling prices are determined first by reference to observable prices. In the event observable prices are not available, we estimate the stand-alone selling price by maximizing observable inputs and apply an adjusted market assessment approach, expected cost plus margin approach, or a residual approach in limited situations. Revenue in these instances is recognized on individual performance obligations within the same contract as they are satisfied. The transaction price is adjusted for our estimate of variable consideration which may include a right of return, discounts, rebates, penalties and retainage. To estimate variable consideration, we apply the expected value or the most likely amount method, based on whichever method most appropriately predicts the amount of consideration we expect to be entitled to. The method applied is typically based on historical experience and known trends. We constrain the amounts of variable consideration that are included in the transaction price, to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur or when uncertainties around the variable consideration are resolved. We exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with specific revenue-producing transaction and collected from a customer, for example sales, use value added and some excise taxes. For all contracts with customers, payment received for our products and services may not necessarily follow the same pattern of revenue recognition to which it relates and are dictated by the terms and conditions of our contracts with customers. Payments received for product sales typically occur following delivery and the satisfaction of the performance obligation based upon the terms outlined in the contracts. Payments received for services typically occur following the services being rendered. For long-term construction-type projects, payments are typically made throughout the contract as progress is made. In limited situations contracts with customers include financing components where payment terms exceed one year, however, we believe that the financing effects are not significant to Xylem. In addition, we apply a practical expedient and do not adjust the promised amount of consideration in a contract for the effects of significant financing components when we expect payment terms to be one year or less from the time the goods or services are transferred until ultimate payment. Product Warranties We offer standard warranties for our products to ensure that our products comply with agreed-upon specifications in our contracts. For standard warranties, these do not give rise to performance obligations and represent assurance-type warranties. In certain instances, product warranty terms are adjusted to account for the specific nature of the contract. In these instances, we assess the warranties to determine whether they represent service-type warranties, and should be accounted for as a separate performance obligation in the contract. For assurance-type warranties, we accrue for the estimated cost of product warranties at the time revenue is recognized and record it as a component of cost of revenue. Our product warranty liability reflects our best estimate of probable liability under the terms and conditions of our product warranties offered to customers. We estimate the liability based on our standard warranty terms, the historical frequency of claims and the cost to replace or repair our products under warranty. Factors that impact our warranty liability include the number of units sold, the length of warranty term, historical and anticipated rates of warranty claims and cost per claim. We also record a warranty liability for specific matters. We assess the adequacy of our recorded warranty liabilities quarterly and adjust amounts as necessary. Disaggregation of Revenue The following table illustrates the sources of revenue: Three Months Ended Six Months Ended (in millions) June 30, 2018 June 30, 2018 Revenue from contracts with customers $ 1,258 $ 2,420 Other 59 114 Total $ 1,317 $ 2,534 The following table reflects revenue from contracts with customers by application: Three Months Ended Six Months Ended (in millions) June 30, 2018 June 30, 2018 Water Infrastructure Transport $ 387 $ 734 Treatment 100 178 Applied Water Commercial Building Services 150 287 Residential Building Services 56 113 Industrial Water 182 354 Measurement and Control Solutions Water 175 347 Electric 37 74 Gas 47 90 Software and Services/Other 35 69 Test 89 174 Total $ 1,258 $ 2,420 The following table reflects revenue from contracts with customers by geographical region: Three Months Ended Six Months Ended (in millions) June 30, 2018 June 30, 2018 Water Infrastructure United States $ 135 $ 248 Europe 191 368 Emerging Markets & Other 161 296 Applied Water United States 198 386 Europe 100 198 Emerging Markets & Other 90 170 Measurement and Control Solutions United States 230 436 Europe 71 155 Emerging Markets & Other 82 163 Total $ 1,258 $ 2,420 Contract Balances We receive payments from customers based on a billing schedule as established in our contracts. Contract assets relate to costs incurred to perform in advance of scheduled billings. Contract liabilities relate to payments received in advance of performance under the contracts. Change in contract assets and liabilities are due to our performance under the contract. The table below provides contract assets, contract liabilities, and significant changes in contract assets and liabilities. (in millions) Contract Assets (a) Contract Liabilities Balance at 1/1/2018 $ 89 $ 107 Additions, net 51 86 Revenue recognized from opening balance — (74 ) Billings (54 ) — Other (3 ) (5 ) Balance at 6/30/2018 $ 83 $ 114 (a) Excludes receivable balances which are disclosed on the balance sheet Performance obligations Delivery schedules vary from customer to customer based upon their requirements. Typically, large projects require longer lead production cycles and delays can occur from time to time. As of June 30, 2018, the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied for contracts with performance obligations, amount to $233 million . We expect to recognize revenue upon the completion of satisfying these performance obligations in the following 12 to 60 months. The Company elects to apply the practical expedient to exclude from this disclosure revenue related to performance obligations that are part of a contract whose original expected duration is less than one year. Contract Costs Costs to obtain a contract include incremental costs that the Company has incurred which it expects to recover. Incremental costs only include costs that the Company would not have incurred had the contract not been obtained. Costs that would have been incurred regardless of whether or not the contract was obtained are expensed as incurred, unless they are explicitly chargeable to the customer whether or not the contract is obtained.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
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, 2018 was $35 million resulting in an effective tax rate of 23.2% , compared to $21 million resulting in an effective tax rate of 16.8% for the same period in 2017 . The income tax provision for the six months ended June 30, 2018 was $51 million resulting in an effective tax rate of 20.8% , compared to $35 million resulting in an effective tax rate of 18.1% for the same period in 2017. The effective tax rate for the three month period ended June 30, 2018 was higher than the U.S. federal statutory rate primarily due to the settlement of tax examinations in various jurisdictions and the Global Intangible Low-Taxed Income ("GILTI") inclusion, partially offset by the mix of earnings in jurisdictions. The effective tax rate for the six month period ended June 30, 2018 was lower than the U.S. federal statutory rate primarily due to the mix of earnings in jurisdictions. Additionally, the effective tax rate for the three and six month periods ended June 30, 2018 is higher than the same periods of 2017 primarily due to the settlement of tax examinations and the GILTI inclusion, partially offset by the reduction of the U.S. federal corporate tax rate. 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 or litigation, 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, 2018 was $126 million , as compared to $130 million at December 31, 2017, 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, 2018 , we had $5 million of interest accrued for unrecognized tax benefits. Tax Act On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code. The SEC staff issued SAB 118, which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. Our accounting for the following elements of the Tax Act is incomplete: reduction of U.S. federal corporate tax rate and Deemed Repatriation Transition Tax ("Transition Tax"). As noted at year end, however, we were able to reasonably estimate certain effects and, therefore, recorded provisional adjustments for reduction of U.S. federal corporate tax rate and Transition Tax as of December 31, 2017. We have not made additional measurement-period adjustments related to the reduction of U.S. federal corporate tax rate during the quarter as we are continuing to perform additional analysis of our deferred tax assets and liabilities. We have not made additional measurement-period adjustments related to the Transition Tax as we are still completing a more detailed analysis of our accumulated and current earnings and profits ("E&P") as well as awaiting additional regulatory guidance. We are evaluating new guidance issued during the period and expect to complete our accounting within the prescribed measurement period. Because of the complexity of the GILTI tax rules, we are continuing to evaluate this provision of the Act and the application of ASC 740. As noted at year-end, we were not yet able to reasonably estimate the effect of the new GILTI rules. Therefore, no provisional adjustments were recorded as of December 31, 2017. Under U.S. GAAP, we are allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). Our selection of an accounting policy related to the new GILTI tax rules will depend, in part, on analyzing our global income to determine whether we expect to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. Because whether we expect to have future U.S. inclusions in taxable income related to GILTI depends on a number of different aspects of our estimated future results of global

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2018
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, 2018 2017 2018 2017 Net income attributable to Xylem (in millions) $ 115 $ 99 $ 194 $ 155 Shares (in thousands): Weighted average common shares outstanding 179,770 179,571 179,814 179,557 Add: Participating securities (a) 35 28 29 31 Weighted average common shares outstanding — Basic 179,805 179,599 179,843 179,588 Plus incremental shares from assumed conversions: (b) Dilutive effect of stock options 886 640 907 600 Dilutive effect of restricted stock units and performance share units 351 362 453 438 Weighted average common shares outstanding — Diluted 181,042 180,601 181,203 180,626 Basic earnings per share $ 0.64 $ 0.55 $ 1.08 $ 0.87 Diluted earnings per share $ 0.64 $ 0.55 $ 1.07 $ 0.86 (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 15 , "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) 2018 2017 2018 2017 Stock options 1,360 1,854 1,289 1,813 Restricted stock units 385 464 339 427 Performance share units 517 530 527 467

Inventories

Inventories	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Inventories	Inventories The components of total inventories are summarized as follows: (in millions) June 30, December 31, Finished goods $ 253 $ 223 Work in process 56 42 Raw materials 289 259 Total inventories $ 598 $ 524

Property, Plant and Equipment

Property, Plant and Equipment	6 Months Ended
	Jun. 30, 2018
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 $ 327 $ 329 Machinery and equipment 810 799 Equipment held for lease or rental 246 241 Furniture and fixtures 108 101 Construction work in progress 82 85 Other 21 21 Total property, plant and equipment, gross 1,594 1,576 Less accumulated depreciation 951 933 Total property, plant and equipment, net $ 643 $ 643 Depreciation expense of $29 million and $58 million was recognized in the three and six months ended June 30, 2018, respectively, and $27 million and $55 million for the three and six months ended June 30, 2017

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Jun. 30, 2018
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, 2018 are as follows: (in millions) Water Infrastructure Applied Water Measurement & Control Solutions Total Balance as of January 1, 2018 $ 667 $ 526 $ 1,575 $ 2,768 Activity in 2018 Divested/Acquired — — 277 277 Foreign currency and other (9 ) (8 ) (32 ) (49 ) Balance as of June 30, 2018 $ 658 $ 518 $ 1,820 $ 2,996 Other Intangible Assets Information regarding our other intangible assets is as follows: June 30, 2018 December 31, 2017 (in millions) Carrying Amount Accumulated Amortization Net Intangibles Carrying Amount Accumulated Amortization Net Intangibles Customer and distributor relationships $ 974 $ (272 ) $ 702 $ 906 $ (241 ) $ 665 Proprietary technology and patents 200 (84 ) 116 163 (75 ) 88 Trademarks 150 (36 ) 114 138 (37 ) 101 Software 320 (147 ) 173 277 (130 ) 147 Other 25 (20 ) 5 26 (20 ) 6 Indefinite-lived intangibles 159 — 159 161 — 161 Other Intangibles $ 1,828 $ (559 ) $ 1,269 $ 1,671 $ (503 ) $ 1,168 Amortization expense related to finite-lived intangible assets was $36 million and $74 million for the three and six months ended June 30, 2018, respectively, and $30 million and $61 million for the three and six months ended June 30, 2017, 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

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments Risk Management Objective of Using Derivatives We are exposed to certain risks arising from both our business operations and economic conditions, and principally manage our exposures to these risks through management of our core business activities. Certain of our foreign operations expose us to fluctuations of foreign interest rates and exchange rates that may impact revenue, expenses, cash receipts, cash payments, and the value of our stockholders' equity. We enter into derivative financial instruments to protect the value or fix the amount of certain cash flows in terms of the functional currency of the business unit with that exposure and reduce the volatility in stockholders' equity. Cash Flow Hedges of Foreign Exchange Risk We are exposed to fluctuations in various foreign currencies against our functional currencies. We use foreign currency derivatives, including currency forward agreements, to manage our exposure to fluctuations in the various exchange rates. Currency forward agreements involve fixing the foreign currency exchange rate for delivery of a specified amount of foreign currency on a specified date. Certain business units with exposure to foreign currency exchange risks have designated certain currency forward agreements as cash flow hedges of forecasted intercompany inventory purchases and sales. Our principal currency exposures relate to the Euro, Swedish Krona, British Pound, Canadian Dollar, Polish Zloty and Australian Dollar. We had foreign exchange contracts with purchase notional amounts totaling $226 million and $455 million as of June 30, 2018 and December 31, 2017, respectively. As of June 30, 2018 , our most significant foreign currency derivatives included contracts to sell U.S. Dollar and purchase Euro, purchase Swedish Krona and sell Euro, sell British Pound and purchase Euro, purchase Polish Zloty and sell Euro, purchase US Dollar and sell Canadian Dollar, and to sell Canadian Dollar and Purchase Euro. The purchased notional amounts associated with these currency derivatives are $75 million , $68 million , $33 million , $18 million , $15 million and $13 million , respectively. As of December 31, 2017, the purchase notional amounts associated with these currency derivatives were $147 million , $149 million , $66 million , $34 million , $28 million and $25 million , respectively. Hedges of Net Investments in Foreign Operations We are exposed to changes in foreign currencies impacting our net investments held in foreign subsidiaries. Cross Currency Swaps Beginning in 2015, we entered into cross currency swaps to manage our exposure to fluctuations in the Euro-U.S. Dollar exchange rate. The total notional amount of derivative instruments designated as net investment hedges was $432 million and $446 million as of June 30, 2018 and December 31, 2017 , 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 $574 million and $592 million as of June 30, 2018 and December 31, 2017, respectively, 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) 2018 2017 2018 2017 Cash Flow Hedges Foreign Exchange Contracts Amount of gain (loss) recognized in OCI (a) $ (9 ) $ 3 $ (9 ) $ 5 Amount of (gain) reclassified from OCI into revenue (a) (1 ) (1 ) (2 ) (1 ) Amount of loss reclassified from OCI into cost of revenue (a) — — — 1 Net Investment Hedges Cross Currency Swaps Amount of gain (loss) recognized in OCI (a) $ 36 $ (23 ) $ 13 $ (31 ) Foreign Currency Denominated Debt Amount of gain (loss) recognized in OCI (a) $ 42 $ (34 ) $ 19 $ (48 ) (a) Effective portion As of June 30, 2018 , $8 million of net losses on cash flow hedges are expected to be reclassified into earnings in the next 12 months. The ineffective portion of a cash flow hedge is recognized immediately in selling, general and administrative expenses in the Condensed Consolidated Income Statements and was not material for the three and six months ended June 30, 2018 and 2017 . As of June 30, 2018 , 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, 2018 . 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 the at 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 $ 1 $ 3 Liabilities Cash Flow Hedges Other current liabilities $ (7 ) $ (1 ) Net Investment Hedges Other non-current liabilities $ (54 ) $ (64 ) The fair value of our long-term debt, due in 2023, designated as a net investment hedge was $620 million and $638 million as of June 30, 2018

Accrued and Other Current Liabi

Accrued and Other Current Liabilities	6 Months Ended
	Jun. 30, 2018
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 $ 187 $ 203 Customer-related liabilities 132 119 Accrued taxes 68 75 Accrued warranty costs 48 55 Other accrued liabilities 101 99 Total accrued and other current liabilities $ 536 $ 551

Credit Facilities and Debt

Credit Facilities and Debt	6 Months Ended
	Jun. 30, 2018
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) 578 597 3.250% Senior Notes due 2026 (a) 500 500 4.375% Senior Notes due 2046 (a) 400 400 Commercial paper 98 — Research and development finance contract 121 125 Term loan 261 — Other 3 — Debt issuance costs and unamortized discount (b) (21 ) (22 ) Total debt 2,540 2,200 Less: short-term borrowings and current maturities of long-term debt 361 — Total long-term debt $ 2,179 $ 2,200 (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 $627 million and $648 million as of June 30, 2018 and December 31, 2017 , respectively. The fair value of our Senior Notes due 2023 was $620 million and $638 million as of June 30, 2018 and December 31, 2017, respectively. The fair value of our Senior Notes due 2026 was $471 million and $498 million as of June 30, 2018 and December 31, 2017, respectively. The fair value of our Senior Notes due 2046 was $389 million and $431 million as of June 30, 2018 and December 31, 2017, 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 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, 2018 , we were in compliance with all covenants for the Senior Notes. 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, 2018 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 $121 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, 2018 and December 31, 2017, $121 million and $125 million were outstanding under the Finance Contract, respectively. Term Loan Facility On January 26, 2018, the Company’s subsidiary, Xylem Europe GmbH (the “borrower”) entered into a 12-month €225 million (approximately $261 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 January 26, 2018 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 Pure Technologies. 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, 2018 and December 31, 2017 $98 million and $0 million of the Company’s $600 million commercial paper program was outstanding at a weighted average interest rate of 2.29% and 0% , respectively. We will periodically borrow under this program and may borrow under it in future periods. Other Borrowings Effective October 20, 2016, Xylem entered into a revolving line of credit with SEB Bank. The line of credit provides for an aggregate principal amount of up €65 million (approximately $75 million ) with a maturity date of September 30, 2018. The line of credit was used to partially fund the acquisition of Pure Technologies in the first quarter of 2018. As of June 30, 2018 the revolving line of credit was undrawn. During the second quarter of 2018, Xylem was funded CNY 20 million (approximately $3 million ) from a revolving line of credit held with the China Construction Bank. The line of credit was used for cash needs associated with Xylem's PDC China business in 2018. As of June 30, 2018 and December 31, 2017, $3 million and $0 million

Postretirement Benefit Plans

Postretirement Benefit Plans	6 Months Ended
	Jun. 30, 2018
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) 2018 2017 2018 2017 Domestic defined benefit pension plans: Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 1 1 2 2 Expected return on plan assets (1 ) (1 ) (3 ) (3 ) Amortization of net actuarial loss — — 1 1 Net periodic benefit cost $ 1 $ 1 $ 2 $ 2 International defined benefit pension plans: Service cost $ 3 $ 3 $ 5 $ 6 Interest cost 5 5 10 10 Expected return on plan assets (10 ) (8 ) (19 ) (16 ) Amortization of net actuarial loss 3 2 5 4 Settlement/Curtailment — — 1 — Net periodic benefit cost $ 1 $ 2 $ 2 $ 4 Total net periodic benefit cost $ 2 $ 3 $ 4 $ 6 The components of net periodic benefit cost other than the service cost component are included in the line item "other non-operating income (expense), net" in the Condensed Consolidated Income Statements. The total net periodic benefit cost for other postretirement employee benefit plans was less than $1 million for both the three and six months ended June 30, 2018, including amounts recognized in other comprehensive income ("OCI") of less than $1 million and $1 million for both the three and six months ended June 30, 2018 . The total net periodic benefit cost for other postretirement employee benefit plans was less than $1 million and $1 million , including amounts recognized in OCI of less than $1 million , for both the three and six months ended June 30, 2017 . We contributed $12 million and $13 million to our defined benefit plans during the six months ended June 30, 2018 and 2017 , respectively. Additional contributions ranging between approximately $10 million and $16 million are expected during the remainder of 2018

Share-Based Compensation Plans

Share-Based Compensation Plans	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation Plans	Share-Based Compensation Plans Share-based compensation expense was $7 million and $16 million during the three and six months ended June 30, 2018, respectively, and $5 million and $11 million during the three and six months ended June 30, 2017, respectively. The unrecognized compensation expense related to our stock options, restricted stock units and performance share units was $8 million , $27 million and $22 million , respectively, at June 30, 2018 and is expected to be recognized over a weighted average period of 2.1 , 2.2 and 2.0 years, respectively. The amount of cash received from the exercise of stock options was $4 million and $7 million for the six months ended June 30, 2018 and 2017 , respectively. Stock Option Grants The following is a summary of the changes in outstanding stock options for the six months ended June 30, 2018 . Share units (in thousands) Weighted Average Exercise Price / Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding at January 1, 2018 2,076 $ 37.44 7.0 Granted 309 75.18 Exercised (118 ) 34.30 Forfeited and expired (40 ) 47.03 Outstanding at June 30, 2018 2,227 $ 42.66 6.9 $ 58 Options exercisable at June 30, 2018 1,497 $ 35.34 6.0 $ 48 Vested and expected to vest as of June 30, 2018 2,135 $ 41.66 6.8 $ 57 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, 2018 was $4.7 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 2018 grants. Volatility 23.40 % Risk-free interest rate 2.76 % Dividend yield 1.12 % Expected term (in years) 5.1 Weighted-average fair value / share $ 17.81 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, 2018 . 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, 2018 779 $ 35.39 Granted 243 74.93 Vested (433 ) 40.17 Forfeited (32 ) 46.61 Outstanding at June 30, 2018 557 $ 58.03 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, 2018 . 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, 2018 298 $ 41.48 Granted 76 75.18 Forfeited (95 ) 37.12 Outstanding at June 30, 2018 279 $ 52.14 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, 2018 . Share units (in thousands) Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2018 213 $ 47.04 Granted 76 99.24 Forfeited (10 ) 47.14 Outstanding at June 30, 2018 279 $ 61.17 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 2018 grants. Volatility 26.8 % Risk-free interest rate 2.44 %

Capital Stock

Capital Stock	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Capital Stock	Capital Stock For the three and six months ended June 30, 2018 the Company repurchased approximately 0.4 million shares for $25 million and 0.8 million shares for $58 million of common stock, respectively. Repurchases include both share repurchase programs approved by the Board of Directors and repurchases in relation to settlement of employee tax withholding obligations due as a result of the vesting of restricted stock units. The details of repurchases by each program are as follows: 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, 2018, we repurchased approximately 0.4 million shares for $25 million and 0.7 million shares for $50 million , respectively. For the three and six months ended June 30, 2017, we repurchased 0.1 million shares for $7 million . There are up to $363 million in shares that may still be purchased under this plan as of June 30, 2018 . Aside from the aforementioned repurchase programs, we repurchased less than 0.1 million shares and approximately 0.1 million shares for less than $1 million and approximately $8 million for the three and six months ended June 30, 2018 , 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 $5 million

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2018
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, 2018: (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at April 1, 2018 $ (7 ) $ (202 ) $ 2 $ (207 ) Foreign currency translation adjustment (60 ) — — (60 ) Tax on foreign currency translation adjustment (19 ) — — (19 ) Amortization of prior service cost and net actuarial loss on postretirement benefit plans into other non-operating income (expense), net — Other non-operating income — 3 — 3 Income tax impact on amortization of postretirement benefit plan items — (1 ) — (1 ) Unrealized loss on derivative hedge agreements — — (9 ) (9 ) Reclassification of unrealized gain on derivative hedge agreements into revenue — — (1 ) (1 ) Balance at June 30, 2018 $ (86 ) $ (200 ) $ (8 ) $ (294 ) The following table provides the components of accumulated other comprehensive income (loss) for the six months ended June 30, 2018: (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at January 1, 2018 $ (15 ) $ (198 ) $ 3 $ (210 ) Cumulative effect of change in accounting principle (11 ) (6 ) — (17 ) Foreign currency translation adjustment (52 ) — — (52 ) Tax on foreign currency translation adjustment (8 ) — — (8 ) Changes in postretirement benefit plans — 1 — 1 Amortization of prior service cost and net actuarial loss on postretirement benefit plans into other non-operating income (expense), net — — Other non-operating income 5 5 Income tax impact on amortization of postretirement benefit plan items — (2 ) — (2 ) Unrealized loss on derivative hedge agreements — — (9 ) (9 ) Reclassification of unrealized gain on derivative hedge agreements into revenue — — (2 ) (2 ) Balance at June 30, 2018 $ (86 ) $ (200 ) $ (8 ) $ (294 )

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
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 $10 million and $10 million as of June 30, 2018 and December 31, 2017, 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, 2018 and December 31, 2017 , the amount of stand-by letters of credit, bank guarantees and surety bonds was $251 million and $240 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, 2018 and December 31, 2017 , 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) 2018 2017 Warranty accrual – January 1 $ 82 $ 99 Net charges for product warranties in the period 13 17 Settlement of warranty claims (24 ) (24 ) Foreign currency and other 1 2 Warranty accrual - June 30 $ 72 $ 94

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Segment Information	Segment Information Our business has three reportable segments: Water Infrastructure, Applied Water and Measurement & Control Solutions. 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 Measurement & Control Solutions 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 Measurement & Control Solutions segment's major products include smart metering, networked communications, measurement and control technologies, critical infrastructure technologies, software and services including cloud-based analytics, remote monitoring and data management, leak detection and pressure monitoring solutions 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 2017 Annual Report). The following tables contain financial information for each reportable segment: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2018 2017 2018 2017 Revenue: Water Infrastructure $ 546 $ 482 $ 1,026 $ 901 Applied Water 388 361 754 694 Measurement & Control Solutions 383 321 754 640 Total $ 1,317 $ 1,164 $ 2,534 $ 2,235 Operating Income: Water Infrastructure $ 92 $ 74 $ 141 $ 115 Applied Water 61 48 111 84 Measurement & Control Solutions 31 29 64 54 Corporate and other (13 ) (14 ) (32 ) (30 ) Total operating income $ 171 $ 137 $ 284 $ 223 Interest expense $ 21 21 $ 42 $ 41 Other non-operating expense, net 2 5 5 4 (Loss) gain from sale of business (2 ) — (2 ) 5 Income before taxes $ 150 $ 121 $ 245 $ 191 Depreciation and Amortization: Water Infrastructure $ 16 $ 15 $ 33 $ 31 Applied Water 6 6 11 12 Measurement & Control Solutions 36 30 73 61 Regional selling locations (a) 5 4 10 8 Corporate and other 2 2 5 4 Total $ 65 $ 57 $ 132 $ 116 Capital Expenditures: Water Infrastructure $ 17 $ 13 $ 40 $ 27 Applied Water 5 3 14 10 Measurement & Control Solutions 22 15 46 32 Regional selling locations (b) 3 3 8 8 Corporate and other 3 — 3 — Total $ 50 $ 34 $ 111 $ 77 (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 $ 1,227 $ 1,232 Applied Water 1,053 1,002 Measurement & Control Solutions 3,664 3,198 Regional selling locations (a) 1,146 1,119 Corporate and other (b) 142 309 Total $ 7,232 $ 6,860 (a) The Regional selling locations have assets that consist primarily of cash, accounts receivable and inventory which are not allocated to the segments. (b)

Background and Basis of Prese26

Background and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2018
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, 2017 (" 2017 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 2017 Annual Report. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, postretirement obligations and assets, revenue recognition, income tax contingency accruals and valuation allowances, goodwill and indefinite lived intangible impairment testing and contingent liabilities. Actual results could differ from these estimates.

Recently Issued Accounting Pr27

Recently Issued Accounting Pronouncements (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Pronouncements Not Yet Adopted and Recently Adopted Pronouncements	Pronouncements Not Yet Adopted In August 2017, the Financial Accounting Standards Board (“FASB”) issued amended guidance on hedging activities. The amendment better aligns a company’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying for hedging relationships and the presentation of hedge results. Specifically, the guidance: (1) Eliminates the concept of recognizing periodic hedge ineffectiveness for cash flow and net investment hedges; (2) Eliminates the benchmark interest rate concept of variable - rate instruments in cash flow hedges and allows companies to designate the contractually specified interest rate as the hedged risk; (3) Requires a company to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported; and (4) Provides the ability to perform subsequent hedge effectiveness tests qualitatively. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted with the effect of adoption reflected as of the beginning of the fiscal year of adoption. For cash flow and net investment hedges existing at the date of adoption, a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness is required. Other presentation and disclosure guidance is required only prospectively. 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. Recently Adopted Pronouncements In February 2018, the FASB issued new guidance on the reclassification of certain tax effects in Accumulated Other Comprehensive Income ("AOCI"). The guidance allows a reclassification from AOCI to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”). This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted. The guidance may be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. We early adopted this guidance effective the first quarter of 2018, and elected to reclassify the income tax effects of the Tax Act from AOCI to retained earnings. As a result of adopting the guidance, AOCI was reduced by $17 million and retained earnings increased by $17 million . This amount includes the effect of the change in the US federal corporate income tax rate. In March 2017, the FASB issued amended guidance on the 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 adopted this guidance effective the first quarter of 2018. The prior period consolidated income statements and segment results have been retrospectively adjusted in accordance with the new guidance. The impact to the presentation between operating income and other non-operating income within Xylem's Consolidated Income Statements was $2 million or less for each of the quarters of 2017 and 2016 and approximately $4 million for the year ended December 31, 2017.

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Purchase Price Allocation	(in millions) Amount Cash $ 14 Receivables 23 Inventories 5 Prepaid and other current assets 2 Property, plant and equipment 22 Intangible assets 149 Other long-term assets 1 Accounts payable (3 ) Accrued and other current liabilities (12 ) Deferred income tax liabilities (27 ) Other non-current accrued liabilities (2 ) Total identifiable net assets 172 Goodwill 262 Total consideration $ 434
Summary of Intangible Assets Acquired	Category Life Amount (in millions) Customer Relationships 17 - 18 years $ 84 Technology 3 - 10 years 38 Tradenames 17 years 21 Internally Developed Software 3 years 6 Total $ 149
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 month periods ended June 30, 2018 and June 30, 2017, respectively, assuming the acquisition of Pure was made on January 1, 2017. (in millions) Three Months Six Months For the period ended June 30, 2018 2017 2018 2017 Revenue N/A $1,189 $2,539 $2,282 Net income N/A $98 $191 $152

Restructuring Charges (Tables)

Restructuring Charges (Tables)	6 Months Ended
	Jun. 30, 2018
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) 2018 2017 2018 2017 By component: Severance and other charges $ 5 $ 6 $ 14 $ 14 Lease related charges — — 1 — Reversal of restructuring accruals — — — (1 ) Total restructuring charges $ 5 $ 6 $ 15 $ 13 Asset impairment — — — 5 Total restructuring and asset impairment charges $ 5 $ 6 $ 15 $ 18 By segment: Water Infrastructure $ 3 $ 3 $ 6 $ 5 Applied Water — 2 1 10 Measurement & Control Solutions 2 1 8 3 Corporate and other — — — —
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, 2018 and 2017 . (in millions) 2018 2017 Restructuring accruals - January 1 $ 7 $ 15 Restructuring charges 15 13 Cash payments (12 ) (17 ) Foreign currency and other — — Restructuring accruals - June 30 $ 10 $ 11 By segment: Water Infrastructure $ 2 $ 1 Applied Water 1 4 Measurement & Control Solutions 4 3 Regional selling locations (a) 2 3 Corporate and other 1 — (a)
Planned Employee Reductions Associated with Restructuring	The following is a rollforward for the six months ended June 30, 2018 and 2017 of employee position eliminations associated with restructuring activities. 2018 2017 Planned reductions - January 1 47 188 Additional planned reductions 155 105 Actual reductions and reversals (103 ) (185 ) Planned reductions - June 30 99 108
Expected Restructuring Costs	The following table presents expected restructuring spend: (in millions) Water Infrastructure Applied Water Measurement & Control Solutions Corporate Total Actions Commenced in 2018: Total expected costs $ 8 $ 1 $ 8 $ — $ 17 Costs incurred during Q1 2018 2 1 5 — 8 Costs incurred during Q2 2018 2 — 2 — 4 Total expected costs remaining $ 4 $ — $ 1 $ — $ 5 Actions Commenced in 2017: Total expected costs $ 19 $ 12 $ 2 $ — $ 33 Costs incurred during 2017 5 4 2 — 11 Costs incurred during Q1 2018 1 — — — 1 Costs incurred during Q2 2018 1 — — — 1 Total expected costs remaining $ 12 $ 8 $ — $ — $ 20 Actions Commenced in 2016: Total expected costs $ 13 $ 14 $ 11 $ 2 $ 40 Costs incurred during 2016 11 10 6 2 29 Costs incurred during 2017 2 4 3 — 9 Costs incurred during Q1 2018 — — 1 — 1 Costs incurred during Q2 2018 — — — — — Total expected costs remaining $ — $ — $ 1 $ — $ 1

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table illustrates the sources of revenue: Three Months Ended Six Months Ended (in millions) June 30, 2018 June 30, 2018 Revenue from contracts with customers $ 1,258 $ 2,420 Other 59 114 Total $ 1,317 $ 2,534 The following table reflects revenue from contracts with customers by application: Three Months Ended Six Months Ended (in millions) June 30, 2018 June 30, 2018 Water Infrastructure Transport $ 387 $ 734 Treatment 100 178 Applied Water Commercial Building Services 150 287 Residential Building Services 56 113 Industrial Water 182 354 Measurement and Control Solutions Water 175 347 Electric 37 74 Gas 47 90 Software and Services/Other 35 69 Test 89 174 Total $ 1,258 $ 2,420 The following table reflects revenue from contracts with customers by geographical region: Three Months Ended Six Months Ended (in millions) June 30, 2018 June 30, 2018 Water Infrastructure United States $ 135 $ 248 Europe 191 368 Emerging Markets & Other 161 296 Applied Water United States 198 386 Europe 100 198 Emerging Markets & Other 90 170 Measurement and Control Solutions United States 230 436 Europe 71 155 Emerging Markets & Other 82 163 Total $ 1,258 $ 2,420
Contract with Customer, Asset and Liability	The table below provides contract assets, contract liabilities, and significant changes in contract assets and liabilities. (in millions) Contract Assets (a) Contract Liabilities Balance at 1/1/2018 $ 89 $ 107 Additions, net 51 86 Revenue recognized from opening balance — (74 ) Billings (54 ) — Other (3 ) (5 ) Balance at 6/30/2018 $ 83 $ 114 (a)

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2018
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, 2018 2017 2018 2017 Net income attributable to Xylem (in millions) $ 115 $ 99 $ 194 $ 155 Shares (in thousands): Weighted average common shares outstanding 179,770 179,571 179,814 179,557 Add: Participating securities (a) 35 28 29 31 Weighted average common shares outstanding — Basic 179,805 179,599 179,843 179,588 Plus incremental shares from assumed conversions: (b) Dilutive effect of stock options 886 640 907 600 Dilutive effect of restricted stock units and performance share units 351 362 453 438 Weighted average common shares outstanding — Diluted 181,042 180,601 181,203 180,626 Basic earnings per share $ 0.64 $ 0.55 $ 1.08 $ 0.87 Diluted earnings per share $ 0.64 $ 0.55 $ 1.07 $ 0.86 (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 15 , "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) 2018 2017 2018 2017 Stock options 1,360 1,854 1,289 1,813 Restricted stock units 385 464 339 427 Performance share units 517 530 527 467

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Inventories	The components of total inventories are summarized as follows: (in millions) June 30, December 31, Finished goods $ 253 $ 223 Work in process 56 42 Raw materials 289 259 Total inventories $ 598 $ 524

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	6 Months Ended
	Jun. 30, 2018
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 $ 327 $ 329 Machinery and equipment 810 799 Equipment held for lease or rental 246 241 Furniture and fixtures 108 101 Construction work in progress 82 85 Other 21 21 Total property, plant and equipment, gross 1,594 1,576 Less accumulated depreciation 951 933 Total property, plant and equipment, net $ 643 $ 643

Goodwill and Other Intangible34

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2018
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, 2018 are as follows: (in millions) Water Infrastructure Applied Water Measurement & Control Solutions Total Balance as of January 1, 2018 $ 667 $ 526 $ 1,575 $ 2,768 Activity in 2018 Divested/Acquired — — 277 277 Foreign currency and other (9 ) (8 ) (32 ) (49 ) Balance as of June 30, 2018 $ 658 $ 518 $ 1,820 $ 2,996
Other Intangible Assets	Information regarding our other intangible assets is as follows: June 30, 2018 December 31, 2017 (in millions) Carrying Amount Accumulated Amortization Net Intangibles Carrying Amount Accumulated Amortization Net Intangibles Customer and distributor relationships $ 974 $ (272 ) $ 702 $ 906 $ (241 ) $ 665 Proprietary technology and patents 200 (84 ) 116 163 (75 ) 88 Trademarks 150 (36 ) 114 138 (37 ) 101 Software 320 (147 ) 173 277 (130 ) 147 Other 25 (20 ) 5 26 (20 ) 6 Indefinite-lived intangibles 159 — 159 161 — 161 Other Intangibles $ 1,828 $ (559 ) $ 1,269 $ 1,671 $ (503 ) $ 1,168

Derivative Financial Instrume35

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2018
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) 2018 2017 2018 2017 Cash Flow Hedges Foreign Exchange Contracts Amount of gain (loss) recognized in OCI (a) $ (9 ) $ 3 $ (9 ) $ 5 Amount of (gain) reclassified from OCI into revenue (a) (1 ) (1 ) (2 ) (1 ) Amount of loss reclassified from OCI into cost of revenue (a) — — — 1 Net Investment Hedges Cross Currency Swaps Amount of gain (loss) recognized in OCI (a) $ 36 $ (23 ) $ 13 $ (31 ) Foreign Currency Denominated Debt Amount of gain (loss) recognized in OCI (a) $ 42 $ (34 ) $ 19 $ (48 ) (a)
Fair values of foreign exchange contracts	The fair values of our foreign exchange contracts currently included in our hedging program designated as hedging instruments were as follows: (in millions) June 30, December 31, Derivatives designated as hedging instruments Assets Cash Flow Hedges Other current assets $ 1 $ 3 Liabilities Cash Flow Hedges Other current liabilities $ (7 ) $ (1 ) Net Investment Hedges Other non-current liabilities $ (54 ) $ (64 )

Accrued and Other Current Lia36

Accrued and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2018
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 $ 187 $ 203 Customer-related liabilities 132 119 Accrued taxes 68 75 Accrued warranty costs 48 55 Other accrued liabilities 101 99 Total accrued and other current liabilities $ 536 $ 551

Credit Facilities and Debt (Tab

Credit Facilities and Debt (Tables)	6 Months Ended
	Jun. 30, 2018
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) 578 597 3.250% Senior Notes due 2026 (a) 500 500 4.375% Senior Notes due 2046 (a) 400 400 Commercial paper 98 — Research and development finance contract 121 125 Term loan 261 — Other 3 — Debt issuance costs and unamortized discount (b) (21 ) (22 ) Total debt 2,540 2,200 Less: short-term borrowings and current maturities of long-term debt 361 — Total long-term debt $ 2,179 $ 2,200 (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 $627 million and $648 million as of June 30, 2018 and December 31, 2017 , respectively. The fair value of our Senior Notes due 2023 was $620 million and $638 million as of June 30, 2018 and December 31, 2017, respectively. The fair value of our Senior Notes due 2026 was $471 million and $498 million as of June 30, 2018 and December 31, 2017, respectively. The fair value of our Senior Notes due 2046 was $389 million and $431 million as of June 30, 2018 and December 31, 2017, respectively. (b)

Postretirement Benefit Plans (T

Postretirement Benefit Plans (Tables)	6 Months Ended
	Jun. 30, 2018
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) 2018 2017 2018 2017 Domestic defined benefit pension plans: Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 1 1 2 2 Expected return on plan assets (1 ) (1 ) (3 ) (3 ) Amortization of net actuarial loss — — 1 1 Net periodic benefit cost $ 1 $ 1 $ 2 $ 2 International defined benefit pension plans: Service cost $ 3 $ 3 $ 5 $ 6 Interest cost 5 5 10 10 Expected return on plan assets (10 ) (8 ) (19 ) (16 ) Amortization of net actuarial loss 3 2 5 4 Settlement/Curtailment — — 1 — Net periodic benefit cost $ 1 $ 2 $ 2 $ 4 Total net periodic benefit cost $ 2 $ 3 $ 4 $ 6

Share-Based Compensation Plans

Share-Based Compensation Plans (Tables)	6 Months Ended
	Jun. 30, 2018
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, 2018 . 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, 2018 779 $ 35.39 Granted 243 74.93 Vested (433 ) 40.17 Forfeited (32 ) 46.61 Outstanding at June 30, 2018 557 $ 58.03
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, 2018 . 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, 2018 298 $ 41.48 Granted 76 75.18 Forfeited (95 ) 37.12 Outstanding at June 30, 2018 279 $ 52.14 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, 2018 . Share units (in thousands) Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2018 213 $ 47.04 Granted 76 99.24 Forfeited (10 ) 47.14 Outstanding at June 30, 2018 279 $ 61.17
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, 2018 . Share units (in thousands) Weighted Average Exercise Price / Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding at January 1, 2018 2,076 $ 37.44 7.0 Granted 309 75.18 Exercised (118 ) 34.30 Forfeited and expired (40 ) 47.03 Outstanding at June 30, 2018 2,227 $ 42.66 6.9 $ 58 Options exercisable at June 30, 2018 1,497 $ 35.34 6.0 $ 48 Vested and expected to vest as of June 30, 2018 2,135 $ 41.66 6.8 $ 57
Stock option valuation assumptions	The following are weighted-average assumptions for 2018 grants. Volatility 23.40 % Risk-free interest rate 2.76 % Dividend yield 1.12 % Expected term (in years) 5.1 Weighted-average fair value / share $ 17.81
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 2018 grants. Volatility 26.8 % Risk-free interest rate 2.44 %

Accumulated Other Comprehensi40

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2018
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, 2018: (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at April 1, 2018 $ (7 ) $ (202 ) $ 2 $ (207 ) Foreign currency translation adjustment (60 ) — — (60 ) Tax on foreign currency translation adjustment (19 ) — — (19 ) Amortization of prior service cost and net actuarial loss on postretirement benefit plans into other non-operating income (expense), net — Other non-operating income — 3 — 3 Income tax impact on amortization of postretirement benefit plan items — (1 ) — (1 ) Unrealized loss on derivative hedge agreements — — (9 ) (9 ) Reclassification of unrealized gain on derivative hedge agreements into revenue — — (1 ) (1 ) Balance at June 30, 2018 $ (86 ) $ (200 ) $ (8 ) $ (294 ) The following table provides the components of accumulated other comprehensive income (loss) for the six months ended June 30, 2018: (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at January 1, 2018 $ (15 ) $ (198 ) $ 3 $ (210 ) Cumulative effect of change in accounting principle (11 ) (6 ) — (17 ) Foreign currency translation adjustment (52 ) — — (52 ) Tax on foreign currency translation adjustment (8 ) — — (8 ) Changes in postretirement benefit plans — 1 — 1 Amortization of prior service cost and net actuarial loss on postretirement benefit plans into other non-operating income (expense), net — — Other non-operating income 5 5 Income tax impact on amortization of postretirement benefit plan items — (2 ) — (2 ) Unrealized loss on derivative hedge agreements — — (9 ) (9 ) Reclassification of unrealized gain on derivative hedge agreements into revenue — — (2 ) (2 ) Balance at June 30, 2018 $ (86 ) $ (200 ) $ (8 ) $ (294 )

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2018
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) 2018 2017 Warranty accrual – January 1 $ 82 $ 99 Net charges for product warranties in the period 13 17 Settlement of warranty claims (24 ) (24 ) Foreign currency and other 1 2 Warranty accrual - June 30 $ 72 $ 94

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2018
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 2017 Annual Report). The following tables contain financial information for each reportable segment: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2018 2017 2018 2017 Revenue: Water Infrastructure $ 546 $ 482 $ 1,026 $ 901 Applied Water 388 361 754 694 Measurement & Control Solutions 383 321 754 640 Total $ 1,317 $ 1,164 $ 2,534 $ 2,235 Operating Income: Water Infrastructure $ 92 $ 74 $ 141 $ 115 Applied Water 61 48 111 84 Measurement & Control Solutions 31 29 64 54 Corporate and other (13 ) (14 ) (32 ) (30 ) Total operating income $ 171 $ 137 $ 284 $ 223 Interest expense $ 21 21 $ 42 $ 41 Other non-operating expense, net 2 5 5 4 (Loss) gain from sale of business (2 ) — (2 ) 5 Income before taxes $ 150 $ 121 $ 245 $ 191 Depreciation and Amortization: Water Infrastructure $ 16 $ 15 $ 33 $ 31 Applied Water 6 6 11 12 Measurement & Control Solutions 36 30 73 61 Regional selling locations (a) 5 4 10 8 Corporate and other 2 2 5 4 Total $ 65 $ 57 $ 132 $ 116 Capital Expenditures: Water Infrastructure $ 17 $ 13 $ 40 $ 27 Applied Water 5 3 14 10 Measurement & Control Solutions 22 15 46 32 Regional selling locations (b) 3 3 8 8 Corporate and other 3 — 3 — Total $ 50 $ 34 $ 111 $ 77 (a) Depreciation and amortization expense incurred by the Regional selling locations was included in an overall allocation of Regional selling location costs to the segments; however, a certain portion of that expense was not specifically identified to a segment. That expense is captured in this Regional selling location line. (b)
Total assets for each reportable segment	The following table contains the total assets for each reportable segment: (in millions) June 30, December 31, Water Infrastructure $ 1,227 $ 1,232 Applied Water 1,053 1,002 Measurement & Control Solutions 3,664 3,198 Regional selling locations (a) 1,146 1,119 Corporate and other (b) 142 309 Total $ 7,232 $ 6,860 (a) The Regional selling locations have assets that consist primarily of cash, accounts receivable and inventory which are not allocated to the segments. (b)

Background and Basis of Prese43

Background and Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2018
Background and Basis of Presentation (Textual) [Abstract]
Number of operating segment	3

Recently Issued Accounting Pr44

Recently Issued Accounting Pronouncements (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended								6 Months Ended		12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating income ($2 million or less for each quarter)	$ 171			$ 137					$ 284	$ 223
Adjustments for New Accounting Pronouncement
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating income ($2 million or less for each quarter)		$ 2	$ 2	$ 2	$ 2	$ 2	$ 2	$ 2			$ 4
AOCI Attributable to Parent
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of adoption		(17)									(17)
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of adoption		$ 17									$ 17

Acquisitions and Divestitures45

Acquisitions and Divestitures (Textuals) (Details) - USD ($) $ in Millions	Jan. 31, 2018	Feb. 17, 2017	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Acquisition of business, net of cash acquired				$ 430	$ 6
Pure Technologies Ltd
Business Acquisition [Line Items]
Acquisition of business, net of cash acquired	$ 420
Acquisition costs	$ 4
Operating income (loss)			$ 1	(2)
Other acquisitions
Business Acquisition [Line Items]
Acquisition of business, net of cash acquired			0	$ 10
Held for sale
Business Acquisition [Line Items]
Estimated loss related to business held for sale			$ 2
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 Divestitures46

Acquisitions and Divestitures (Purchase Price Allocation) (Details) - USD ($) $ in Millions	Jun. 30, 2018	Jan. 31, 2018	Dec. 31, 2017	Oct. 31, 2016
Business Acquisition [Line Items]
Goodwill	$ 2,996		$ 2,768
Pure Technologies Ltd
Business Acquisition [Line Items]
Cash		$ 14
Receivables		23
Inventories		5
Prepaid and other current assets		2
Property, plant and equipment		22
Intangible assets		149		$ 149
Other long-term assets		1
Accounts payable		(3)
Accrued and other current liabilities		(12)
Deferred income tax liabilities		(27)
Other non-current accrued liabilities		(2)
Total identifiable net assets		172
Goodwill		262
Total consideration		$ 434

Acquisitions and Divestitures47

Acquisitions and Divestitures (Summary of Intangible Assts Acquired) (Details) - Pure Technologies Ltd - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jan. 31, 2018	Oct. 31, 2016
Business Acquisition [Line Items]
Intangible assets		$ 149	$ 149
Customer Relationships
Business Acquisition [Line Items]
Weighted-average useful life	18 years
Intangible assets			84
Technology
Business Acquisition [Line Items]
Intangible assets			38
Technology | Minimum
Business Acquisition [Line Items]
Weighted-average useful life	3 years
Technology | Maximum
Business Acquisition [Line Items]
Weighted-average useful life	10 years
Tradenames
Business Acquisition [Line Items]
Weighted-average useful life	17 years
Intangible assets			21
Internally Developed Software
Business Acquisition [Line Items]
Intangible assets			$ 6
Internally Developed Software | Minimum
Business Acquisition [Line Items]
Weighted-average useful life	3 years

Acquisitions and Divestitures48

Acquisitions and Divestitures (Summary of Pro Forma Information) (Details) - Pure Technologies Ltd - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Business Acquisition [Line Items]
Revenue	$ 1,189	$ 2,539	$ 2,282
Net income	$ 98	$ 191	$ 152

Restructuring Charges (Restruct

Restructuring Charges (Restructuring Charges) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Restructuring Cost and Impairment Charge
Severance and other charges	$ 5	$ 6	$ 14	$ 14
Lease related charges	0	0	1	0
Reversal of restructuring accruals	0	0	0	(1)
Restructuring charges	5	6	15	13
Asset impairment	0	0	0	5
Total restructuring and asset impairment charges	5	6	15	18
Water Infrastructure
Restructuring Cost and Impairment Charge
Restructuring charges	3	3	6	5
Applied Water
Restructuring Cost and Impairment Charge
Restructuring charges	0	2	1	10
Asset impairment	5
Measurement & Control Solutions
Restructuring Cost and Impairment Charge
Restructuring charges	2	1	8	3
Corporate Segment
Restructuring Cost and Impairment Charge
Restructuring charges	$ 0	$ 0	$ 0	$ 0

Revenue (Details)

Revenue (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Change in Contract with Customer, Asset [Abstract]
Beginning balance	$ 89
Additions, net	51
Billings	(54)
Other	(3)
Ending balance	83
Change in Contract with Customer, Liability [Abstract]
Beginning balance	107
Additions, net		$ 86
Revenue recognized from opening balance		(74)
Other		$ (5)
Ending balance	$ 114

Restructuring Charges (Accrual

Restructuring Charges (Accrual Rollfoward) (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Restructuring Reserve [Roll Forward]
Restructuring accruals - January 1				$ 7	$ 15
Restructuring charges		$ 5	$ 6	15	13
Cash payments				(12)	(17)
Foreign currency and other				0	0
Restructuring accruals - June 30		10	11	10	11
Water Infrastructure
Restructuring Reserve [Roll Forward]
Restructuring charges		3	3	6	5
Restructuring accruals - June 30		2	1	2	1
Applied Water
Restructuring Reserve [Roll Forward]
Restructuring charges		0	2	1	10
Restructuring accruals - June 30		1	4	1	4
Measurement & Control Solutions
Restructuring Reserve [Roll Forward]
Restructuring charges		2	1	8	3
Restructuring accruals - June 30		4	3	4	3
Regional Selling Locations
Restructuring Reserve [Roll Forward]
Restructuring accruals - June 30	[1]	2	3	2	3
Corporate Segment
Restructuring Reserve [Roll Forward]
Restructuring charges		0	0	0	0
Restructuring accruals - June 30		$ 1	$ 0	$ 1	$ 0
[1]	(a)Regional selling locations consist primarily of selling and marketing organizations that incurred restructuring expense which was allocated to the segments. The liabilities associated with restructuring expense were not allocated to the segments.

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 1,258		$ 2,420
Other	59		114
Total	1,317	$ 1,164	2,534	$ 2,235
Water Infrastructure
Disaggregation of Revenue [Line Items]
Total	546	482	1,026	901
Water Infrastructure | United States
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	135		248
Water Infrastructure | Europe
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	191		368
Water Infrastructure | Emerging Markets & Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	161		296
Water Infrastructure | Transport
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	387		734
Water Infrastructure | Treatment
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	100		178
Applied Water
Disaggregation of Revenue [Line Items]
Total	388	361	754	694
Applied Water | United States
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	198		386
Applied Water | Europe
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	100		198
Applied Water | Emerging Markets & Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	90		170
Applied Water | Commercial Building Services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	150		287
Applied Water | Residential Building Services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	56		113
Applied Water | Industrial Water
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	182		354
Measurement & Control Solutions
Disaggregation of Revenue [Line Items]
Total	383	$ 321	754	$ 640
Measurement & Control Solutions | United States
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	230		436
Measurement & Control Solutions | Europe
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	71		155
Measurement & Control Solutions | Emerging Markets & Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	82		163
Measurement & Control Solutions | Water
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	175		347
Measurement & Control Solutions | Electric
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	37		74
Measurement & Control Solutions | Gas
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	47		90
Measurement & Control Solutions | Software and Services/Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	35		69
Measurement & Control Solutions | Test
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 89		$ 174

Restructuring Charges (Number o

Restructuring Charges (Number of Positions Eliminated Rollfoward) (Details) - employee	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Restructuring and Related Cost, Number of Positions Eliminated [Roll Forward]
Planned reductions - January 1	47	188
Additional planned reductions	155	105
Actual reductions and reversals	(103)	(185)
Planned reductions - June 30	99	108

Revenue (Narrative) (Details)

Revenue (Narrative) (Details) $ in Millions	Jun. 30, 2018USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 233
Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of recognition	12 months
Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of recognition	60 months

Restructuring Charges (Textuals

Restructuring Charges (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 5	$ 6	$ 15	$ 13
Asset Impairment Charges	0	0	0	5
Applied Water
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	$ 2	$ 1	$ 10
Asset Impairment Charges	$ 5

Restructuring Charges (Estimate

Restructuring Charges (Estimated Restructuring Costs) (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
2018 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	$ 17
Restructuring costs incurred during period	4	$ 8
Total expected costs remaining	5
2017 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	33
Restructuring costs incurred during period	1	1	$ 11
Total expected costs remaining	20
2016 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	40
Restructuring costs incurred during period	0	1	9	$ 29
Total expected costs remaining	1
Operating Segments | Water Infrastructure | 2018 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	8
Restructuring costs incurred during period	2	2
Total expected costs remaining	4
Operating Segments | Water Infrastructure | 2017 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	19
Restructuring costs incurred during period	1	1	5
Total expected costs remaining	12
Operating Segments | Water Infrastructure | 2016 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	13
Restructuring costs incurred during period	0	0	2	11
Total expected costs remaining	0
Operating Segments | Applied Water | 2018 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 | Applied Water | 2017 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	12
Restructuring costs incurred during period	0	0	4
Total expected costs remaining	8
Operating Segments | Applied Water | 2016 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	14
Restructuring costs incurred during period	0	0	4	10
Total expected costs remaining	0
Operating Segments | Measurement & Control Solutions | 2018 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	8
Restructuring costs incurred during period	2	5
Total expected costs remaining	1
Operating Segments | Measurement & Control Solutions | 2017 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	2
Restructuring costs incurred during period	0	0	2
Total expected costs remaining	0
Operating Segments | Measurement & Control Solutions | 2016 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	11
Restructuring costs incurred during period	0	1	3	6
Total expected costs remaining	1
Corporate | 2018 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	0
Restructuring costs incurred during period	0	0
Total expected costs remaining	0
Corporate | 2017 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	0
Restructuring costs incurred during period	0	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	$ 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, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Income Taxes (Textual) [Abstract]
Income tax provision	$ 35	$ 21	$ 51	$ 35
Effective tax rate	23.20%	16.80%	20.80%	18.10%
Unrecognized tax benefits	$ 126		$ 126		$ 130
Interest accrued for unrecognized tax benefits	$ 5		$ 5

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, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Basic and diluted net earnings per share:
Net income attributable to Xylem (in usd)		$ 115	$ 99	$ 194	$ 155
Shares
Weighted average common shares outstanding		179,770	179,571	179,814	179,557
Add: Participating securities	[1]	35	28	29	31
Weighted average common shares outstanding — Basic		179,805	179,599	179,843	179,588
Plus incremental shares from assumed conversions:
Weighted average common shares outstanding — Diluted		181,042	180,600	181,203	180,626
Basic earnings per share (usd per share)		$ 0.64	$ 0.55	$ 1.08	$ 0.87
Diluted earnings per share (usd per share)		$ 0.64	$ 0.55	$ 1.07	$ 0.86
Stock Options
Plus incremental shares from assumed conversions:
Dilutive effect of common shares	[2]	886	640	907	600
Restricted Stock
Plus incremental shares from assumed conversions:
Dilutive effect of common shares	[2]	351	362	453	438
[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 15

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, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Stock Options
Incremental shares from stock options and restricted stock:
Antidilutive securities (in shares)	1,360	1,854	1,289	1,813
Restricted Stock
Incremental shares from stock options and restricted stock:
Antidilutive securities (in shares)	385	464	339	427
Performance Based Shares
Incremental shares from stock options and restricted stock:
Antidilutive securities (in shares)	517	530	527	467

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Inventories
Finished goods	$ 253	$ 223
Work in process	56	42
Raw materials	289	259
Total inventories	$ 598	$ 524

Property, Plant and Equipment61

Property, Plant and Equipment (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment
Property, plant and equipment, gross	$ 1,594	$ 1,576
Less accumulated depreciation	951	933
Total property, plant and equipment, net	643	643
Land, buildings and improvements
Property, Plant and Equipment
Property, plant and equipment, gross	327	329
Machinery and equipment
Property, Plant and Equipment
Property, plant and equipment, gross	810	799
Equipment held for lease or rental
Property, Plant and Equipment
Property, plant and equipment, gross	246	241
Furniture and fixtures
Property, Plant and Equipment
Property, plant and equipment, gross	108	101
Construction work in progress
Property, Plant and Equipment
Property, plant and equipment, gross	82	85
Other
Property, Plant and Equipment
Property, plant and equipment, gross	$ 21	$ 21

Property, Plant and Equipment62

Property, Plant and Equipment (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Property Plant And Equipment (Textual) [Abstract]
Depreciation expense	$ 29	$ 27	$ 58	$ 55

Goodwill and Other Intangible63

Goodwill and Other Intangible Assets (Goodwill Rollforward) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2018	$ 2,768
Divested/Acquired	277
Foreign currency and other	(49)
Balance as of June 30, 2018	2,996
Water Infrastructure
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2018	667
Divested/Acquired	0
Foreign currency and other	(9)
Balance as of June 30, 2018	658
Applied Water
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2018	526
Divested/Acquired	0
Foreign currency and other	(8)
Balance as of June 30, 2018	518
Measurement & Control Solutions
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2018	1,575
Divested/Acquired	277
Foreign currency and other	(32)
Balance as of June 30, 2018	$ 1,820

Goodwill and Other Intangible64

Goodwill and Other Intangible Assets (Summary of Intangible Assets) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Goodwill and Other Intangible Assets
Accumulated Amortization	$ (559)		$ (559)		$ (503)
Intangible Assets Gross, Carrying Amount	1,828		1,828		1,671
Intangible Assets, Net Intangibles	1,269		1,269		1,168
Amortization	36	$ 30	74	$ 61
Customer and distributor relationships
Goodwill and Other Intangible Assets
Carrying Amount	974		974		906
Accumulated Amortization	(272)		(272)		(241)
Net Intangibles	702		702		665
Proprietary technology and patents
Goodwill and Other Intangible Assets
Carrying Amount	200		200		163
Accumulated Amortization	(84)		(84)		(75)
Net Intangibles	116		116		88
Trademarks
Goodwill and Other Intangible Assets
Carrying Amount	150		150		138
Accumulated Amortization	(36)		(36)		(37)
Net Intangibles	114		114		101
Software
Goodwill and Other Intangible Assets
Carrying Amount	320		320		277
Accumulated Amortization	(147)		(147)		(130)
Net Intangibles	173		173		147
Other
Goodwill and Other Intangible Assets
Carrying Amount	25		25		26
Accumulated Amortization	(20)		(20)		(20)
Net Intangibles	5		5		6
Indefinite-lived intangibles
Goodwill and Other Intangible Assets
Accumulated Amortization	0		0		0
Indefinite-lived intangibles	$ 159		$ 159		$ 161

Goodwill and Other Intangible65

Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense related to finite-lived intangible assets	$ 36	$ 30	$ 74	$ 61
Asset Impairment Charges	$ 4

Derivative Financial Instrume66

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, 2018		Jun. 30, 2017		Jun. 30, 2018	Jun. 30, 2017
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI		$ 9		$ (3)		$ 9	$ (5)
Amount of gain reclassified from OCI into revenue		(1,317)		(1,164)		(2,534)	(2,235)
Reclassification out of Accumulated Other Comprehensive Income | Foreign Exchange Contract
Derivative Financial Instruments
Amount of gain reclassified from OCI into revenue	[1]	(1)		(1)		(2)	(1)
Amount of (gain) loss reclassified from OCI into cost of revenue	[1]	0		0		0	1
Cash Flow Hedging [Member] | Foreign Exchange Contract
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI	[1]	(9)		3		(9)	5
Cash Flow Hedging [Member] | Cross Currency Swaps
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI		36	[1]	(23)	[1]	(13)	(31)	[1]
Cash Flow Hedging [Member] | Foreign Currency Denominated Debt
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI	[1]	$ 42		$ (34)		$ 19	$ (48)
[1]	Effective portion

Derivative Financial Instrume67

Derivative Financial Instruments (Balance Sheet Location of Derivative Instruments) (Details) - Derivatives designated as hedging instruments - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Other current assets
Derivatives, Fair Value
Assets	$ 1	$ 3
Other Liabilities [Member]
Derivatives, Fair Value
Cash Flow Hedges	(7)	(1)
Other non-current liabilities
Derivatives, Fair Value
Net Investment Hedges	(54)	(64)
Long-term debt
Derivatives, Fair Value
Net Investment Hedges	$ 574	$ 592

Derivative Financial Instrume68

Derivative Financial Instruments (Details Textual) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)	Mar. 11, 2016USD ($)	Mar. 11, 2016EUR (€)
Derivative [Line Items]
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months		$ 8		$ 8
Revenues		1,317	$ 1,164	2,534	$ 2,235
Foreign Exchange Contract
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		226		226		$ 455
Derivatives designated as hedging instruments | Sell USD Buy EUR [Member]
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		75		75		147
Derivatives designated as hedging instruments | Sell EUR Buy PLN
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		18		18		34
Derivatives designated as hedging instruments | Buy USD Sell CDN [Member]
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		15		15		28
Derivatives designated as hedging instruments | Sell CDN Buy EUR [Member]
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		13		13		25
Derivatives designated as hedging instruments | Sell GBP Buy EUR
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		33		33		66
Derivatives designated as hedging instruments | Buy KR Sell EUR [Member]
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		68		68		149
Derivatives designated as hedging instruments | Cross Currency Swaps
Derivative Financial Instruments (Textual) [Abstract]
Notional amount		432		432		446
Long-term debt | Derivatives designated as hedging instruments
Derivative Financial Instruments (Textual) [Abstract]
Net Investment Hedges		574		574		592
Senior Notes Due 2023, 2.250%
Derivative [Line Items]
Long-term Debt, Fair Value		620		620		$ 638
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	$ 2	$ 1
[1]	Effective portion

Accrued and Other Current Lia69

Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Accrued and Other Current Liabilities
Compensation and other employee benefits	$ 187	$ 203
Customer-related liabilities	132	119
Accrued taxes	68	75
Accrued warranty costs	48	55
Other accrued liabilities	101	99
Total accrued and other current liabilities	$ 536	$ 551

Credit Facilities and Debt (Sum

Credit Facilities and Debt (Summary of Debt Outstanding) (Details) - USD ($) $ in Millions		Jun. 30, 2018	Dec. 31, 2017
Credit Facilities and Long-Term Debt :
Other		$ 3	$ 0
Debt issuance costs and unamortized discount	[1]	(21)	(22)
Long-term debt		2,179	2,200
Total debt		2,540	2,200
Short-term borrowings and current maturities of long-term debt		361	0
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]	578	597
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		98	0
Research and development finance contract
Credit Facilities and Long-Term Debt :
Senior Notes Due		121	125
Term loan
Credit Facilities and Long-Term Debt :
Senior Notes Due		$ 261	$ 0
[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 $627 million and $648 million as of June 30, 2018 and December 31, 2017 , respectively. The fair value of our Senior Notes due 2023 was $620 million and $638 million as of June 30, 2018 and December 31, 2017, respectively. The fair value of our Senior Notes due 2026 was $471 million and $498 million as of June 30, 2018 and December 31, 2017, respectively. The fair value of our Senior Notes due 2046 was $389 million and $431 million as of June 30, 2018

Credit Facilities and Debt (Tex

Credit Facilities and Debt (Textuals) (Details) ¥ in Millions		Mar. 27, 2015USD ($)	Sep. 20, 2011USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2018CNY (¥)	Jun. 30, 2018USD ($)	Jun. 30, 2017	Dec. 31, 2017USD ($)	Jan. 26, 2018USD ($)	Jan. 26, 2018EUR (€)	Oct. 31, 2016USD ($)	Oct. 31, 2016EUR (€)	Oct. 28, 2016USD ($)	Oct. 28, 2016EUR (€)	Oct. 11, 2016USD ($)	Mar. 11, 2016USD ($)	Mar. 11, 2016EUR (€)
Debt Instrument
Commercial Paper				$ 600,000,000		$ 600,000,000
Commercial paper outstanding								$ 0
Weighted average interest rate				2.29%	2.29%			0.00%
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%	1.00%
Maximum leverage ratio							4
Maximum leverage ratio subsequent						3.50
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									$ 261,000,000	€ 225,000,000			$ 121,000,000	€ 105,000,000
Senior Notes Due 2021, 4.875%
Debt Instrument
Fair value of senior notes due				$ 627,000,000		$ 627,000,000		$ 648,000,000
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				620,000,000		620,000,000		638,000,000
Senior Notes Due	[1]			578,000,000		$ 578,000,000		597,000,000
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
Term of debt						5 years
Senior Notes due 2026
Debt Instrument
Fair value of senior notes due				471,000,000		$ 471,000,000		498,000,000
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				389,000,000		389,000,000		431,000,000
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				121,000,000		121,000,000		125,000,000
Term loan
Debt Instrument
Senior Notes Due				261,000,000		261,000,000		0
SEB Bank | Line of Credit
Debt Instrument
Face amount											$ 75,000,000	€ 65,000,000
China Construction Bank | Revolving Credit Facility
Debt Instrument
Outstanding balance				3,000,000		$ 3,000,000		$ 0
Borrowings from credit facility				$ 3,000,000	¥ 20
[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 $627 million and $648 million as of June 30, 2018 and December 31, 2017 , respectively. The fair value of our Senior Notes due 2023 was $620 million and $638 million as of June 30, 2018 and December 31, 2017, respectively. The fair value of our Senior Notes due 2026 was $471 million and $498 million as of June 30, 2018 and December 31, 2017, respectively. The fair value of our Senior Notes due 2046 was $389 million and $431 million as of June 30, 2018

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, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net periodic benefit cost:
Amortization of net actuarial loss	$ 1	$ 1	$ 1	$ 1
Net periodic benefit cost	2	3	4	6
Domestic defined benefit pension plans
Net periodic benefit cost:
Service cost	1	1	2	2
Interest cost	1	1	2	2
Expected return on plan assets	(1)	(1)	(3)	(3)
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	3	5	6
Interest cost	5	5	10	10
Expected return on plan assets	(10)	(8)	(19)	(16)
Amortization of net actuarial loss	3	2	5	4
Settlement/Curtailment	0	0	1
Net periodic benefit cost	$ 1	$ 2	$ 2	$ 4

Postretirement Benefit Plans 73

Postretirement Benefit Plans (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Other postretirement benefit expense	$ 1	$ 1	$ 1	$ 1
Amortization of net actuarial loss	1	$ 1	1	1
Employer contribution to defined benefit plan			12	$ 13
Minimum
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Additional contributions	10		10
Maximum
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Additional contributions	$ 16		$ 16

Share-Based Compensation Plan74

Share-Based Compensation Plans (Textuals) (Details) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation	$ 7	$ 5	$ 16	$ 11
Shares Awarded (in shares)			309
Stock-Based Compensation Plans (Textual) [Abstract]
Proceeds from exercise of employee stock options			$ 4	$ 7
Total intrinsic value of options exercised			4.7
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	27		$ 27
Weighted average period			2 years 2 months 12 days
Shares Awarded (in shares)			243
Performance Based Shares
Share-based Compensation Arrangement by Share-based Payment Award
Unamortized compensation expense	$ 22		$ 22
Weighted average period			2 years

Share-Based Compensation Plan75

Share-Based Compensation Plans (Summary of Stock Options Grant) (Details) - USD ($) $ / shares in Units, shares in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Summary of the changes in outstanding stock options
Outstanding, beginning of period (in shares)	2,076
Granted (in shares)	309
Exercised (in shares)	(118)
Forfeited (in shares)	(40)
Outstanding, end of period (in shares)	2,227	2,076
Options exercisable, ending of period (in shares)	1,497
Vested and expected, end of period (in shares)	2,135
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)	$ 37.44
Granted (in usd per share)	75.18
Exercised (in usd per share)	34.30
Forfeited (in usd per share)	47.03
Outstanding, end of period (in usd per share)	42.66	$ 37.44
Options exercisable, end of period (in usd per share)	35.34
Vested and expected, end of period (in usd per share)	$ 41.66
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted Average Remaining Contractual Term [Roll Forward]
Outstanding, weighted average remaining contractual term	6 years 10 months 24 days	7 years
Aggregate intrinsic value, outstanding	$ 58,000,000
Options exercisable, end of period	6 years
Aggregate intrinsic value, exercisable	$ 48,000,000
Vested and expected to vest, end of period	6 years 9 months 18 days
Aggregate intrinsic value, vested and expected to vest	$ 57,000,000

Share-Based Compensation Plan76

Share-Based Compensation Plans (Stock Option Fair Value Assumptions) (Details) - Stock Options	6 Months Ended
	Jun. 30, 2018$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility	23.40%
Risk-free interest rate	2.76%
Dividend yield	1.12%
Expected term (in years)	5 years 1 month 6 days
Weighted-average fair value / share (in usd per share)	$ 17.81

Share-Based Compensation Plan77

Share-Based Compensation Plans (Summary of Restricted Stock Unit Grants) (Details) - Restricted Stock [Member] shares in Thousands	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Summary of restricted stock activity
Outstanding, beginning of period (in shares) | shares	779
Granted (in shares) | shares	243
Vested (in shares) | shares	(433)
Forfeited (in shares) | shares	(32)
Outstanding, end of period (in shares) | shares	557
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding, beginning of period (in usd per share) | $ / shares	$ 35.39
Granted (in usd per share) | $ / shares	74.93
Vested (in usd per share) | $ / shares	40.17
Forfeited (in usd per share) | $ / shares	46.61
Outstanding, end of period (in usd per share) | $ / shares	$ 58.03

Share-Based Compensation Plan78

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, 2018$ / sharesshares
Summary of performance share activity
Outstanding, beginning of period (in shares) | shares	298
Granted (in shares) | shares	76
Forfeited (in shares) | shares	(95)
Outstanding, end of period (in shares) | shares	279
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	$ 41.48
Granted (in usd per share) | $ / shares	75.18
Forfeited (in usd per share) | $ / shares	37.12
Outstanding, end of period (in usd per share) | $ / shares	$ 52.14

Share-Based Compensation Plan79

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, 2018$ / sharesshares
Summary of performance share activity
Outstanding, beginning of period (in shares) | shares	213
Granted (in shares) | shares	76
Forfeited (in shares) | shares	(10)
Outstanding, end of period (in shares) | shares	279
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	$ 47.04
Granted (in usd per share) | $ / shares	99.24
Forfeited (in usd per share) | $ / shares	47.14
Outstanding, end of period (in usd per share) | $ / shares	$ 61.17

Share-Based Compensation Plan80

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, 2018$ / 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	(10)
Volatility	26.80%
Risk-free interest rate	2.44%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares	$ 47.14

Capital Stock (Textuals) (Detai

Capital Stock (Textuals) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Aug. 24, 2015
Equity, Class of Treasury Stock [Line Items]
Shares repurchased (in shares - less than 0.1 million)	100,000	100,000	100,000	100,000
Shares repurchased (less than $1 million)	$ 1,000,000	$ 1,000,000	$ 8,000,000	$ 5,000,000
Share Repurchase Programs
Equity, Class of Treasury Stock [Line Items]
Shares repurchased (in shares - less than 0.1 million)	400,000		800,000
Shares repurchased (less than $1 million)	$ 25,000,000		$ 58,000,000
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)	400,000	100,000	700,000	100,000
Shares repurchased (less than $1 million)	$ 25,000,000	$ 7,000,000	$ 50,000,000	$ 7,000,000
Remaining authorized amount of repurchase	$ 363,000,000		$ 363,000,000

Accumulated Other Comprehensi82

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			$ (210)
Foreign currency translation adjustment	$ (60)	$ 30	(52)	$ 59
Changes in postretirement benefit plans	1
Amortization of net actuarial loss on postretirement benefit plans into:			(2)
Ending balance	(294)		(294)
Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(210)
Cumulative effect of adoption					$ (17)
Foreign currency translation adjustment	(60)		(52)
Foreign currency gain reclassified into gain on sale of businesses	(19)		(8)
Income tax expense on amortization of postretirement benefit plan items	(1)		(2)
Unrealized loss on derivative hedge agreements	(9)		9
Ending balance	(294)	(207)	(294)	(207)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(15)
Cumulative effect of adoption					(11)
Foreign currency translation adjustment	(60)		(52)
Foreign currency gain reclassified into gain on sale of businesses	(19)		(8)
Changes in postretirement benefit plans	0
Income tax expense on amortization of postretirement benefit plan items	0		0
Unrealized loss on derivative hedge agreements	0		0
Ending balance	(86)	(7)	(86)	(7)
Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(198)
Cumulative effect of adoption					(6)
Foreign currency translation adjustment	0		0
Foreign currency gain reclassified into gain on sale of businesses	0		0
Changes in postretirement benefit plans	1
Income tax expense on amortization of postretirement benefit plan items	(1)		(2)
Unrealized loss on derivative hedge agreements	0		0
Ending balance	(200)	(202)	(200)	(202)
Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			3
Cumulative effect of adoption					$ 0
Foreign currency translation adjustment	0		0
Foreign currency gain reclassified into gain on sale of businesses	0		0
Changes in postretirement benefit plans	0
Income tax expense on amortization of postretirement benefit plan items	0		0
Unrealized loss on derivative hedge agreements	(9)		9
Ending balance	(8)	$ 2	(8)	$ 2
Other non-operating income
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of net actuarial loss on postretirement benefit plans into:	3		5
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:	3		5
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)		$ (2)

Commitments and Contingencies83

Commitments and Contingencies (Summary of Warranties) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Warranties
Warranty accrual – January 1	$ 82	$ 99
Net charges for product warranties in the period	13	17
Settlement of warranty claims	(24)	(24)
Foreign currency and other	1	2
Warranty accrual - June 30	$ 72	$ 94

Commitments and Contingencies84

Commitments and Contingencies (Details Textual) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Loss Contingency Accrual	$ 10	$ 10
Guarantee amounts	251	240
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, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Financial information for each reportable segment
Revenues		$ 1,317	$ 1,164	$ 2,534	$ 2,235
Operating income		171	137	284	223
Interest Expense		21	21	42	41
Other Nonoperating Income (Expense)		2	5	5	4
(Loss) gain from sale of business		(2)	0	(2)	5
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest		150	121	245	191
Depreciation and amortization		65	57	132	116
Capital expenditures		50	34	111	77
Water Infrastructure
Financial information for each reportable segment
Revenues		546	482	1,026	901
Operating income		92	74	141	115
Depreciation and amortization		16	15	33	31
Capital expenditures		17	13	40	27
Applied Water
Financial information for each reportable segment
Revenues		388	361	754	694
Operating income		61	48	111	84
Depreciation and amortization		6	6	11	12
Capital expenditures		5	3	14	10
Measurement & Control Solutions
Financial information for each reportable segment
Revenues		383	321	754	640
Operating income		31	29	64	54
Depreciation and amortization		36	30	73	61
Capital expenditures		22	15	46	32
Regional Selling Locations
Financial information for each reportable segment
Depreciation and amortization	[1]	5	4	10	8
Capital expenditures	[2]	3	3	8	8
Corporate and other
Financial information for each reportable segment
Operating income		(13)	(14)	(32)	(30)
Depreciation and amortization		2	2	5	4
Capital expenditures		$ 3	$ 0	$ 3	$ 0
[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 86

Segment Information (Summary of Assets by Segment) (Details) - USD ($) $ in Millions		Jun. 30, 2018	Dec. 31, 2017
Total assets for each reportable segment
Total assets		$ 7,232	$ 6,860
Water Infrastructure
Total assets for each reportable segment
Total assets		1,227	1,232
Applied Water
Total assets for each reportable segment
Total assets		1,053	1,002
Measurement & Control Solutions
Total assets for each reportable segment
Total assets		3,664	3,198
Regional Selling Locations
Total assets for each reportable segment
Total assets	[1]	1,146	1,119
Corporate and other
Total assets for each reportable segment
Total assets	[2]	$ 142	$ 309
[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, 2018Segment
Segment Information (Textual) [Abstract]
Number of reportable segments	3