Xylem (XYL) 10-Q 5 May 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2020	May 01, 2020
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	1-35229
Entity Registrant Name	Xylem Inc.
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	45-2080495
Entity Address, Address Line One	1 International Drive
Entity Address, City or Town	Rye Brook
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10573
City Area Code	914
Local Phone Number	323-5700
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		179,915,293
Entity Shell Company	false
Entity Central Index Key	0001524472
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	XYL
Security Exchange Name	NYSE
Senior Notes Due 2023, 2.250%
Document Information [Line Items]
Title of 12(b) Security	2.250% Senior Notes due 2023
Trading Symbol	XYL23
Security Exchange Name	NYSE

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Recently Adopted Pronouncements In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments," amending the accounting for the impairment of financial instruments, including trade receivables. Under previous guidance, credit losses were recognized when the applicable losses had a probable likelihood of occurring and this assessment was based on past events and current conditions. The amended current 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

Condensed Consolidated Income S

Condensed Consolidated Income Statements (Unaudited) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Revenues	$ 1,123	$ 1,237
Cost of revenue	714	763
Gross profit	409	474
Selling, general and administrative expenses	297	303
Research and development expenses	49	51
Restructuring and asset impairment charges	2	11
Operating income	61	109
Interest expense	16	18
Other non-operating (expense) income, net	(3)	2
Gain from sale of business	0	1
Income before taxes	42	94
Income tax expense	4	15
Net income	$ 38	$ 79
Earnings per share:
Basic (usd per share)	$ 0.21	$ 0.44
Diluted (usd per share)	$ 0.21	$ 0.43
Weighted average number of shares:
Basic (in shares)	180,179	179,746
Diluted (in shares)	181,294	181,113

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 38	$ 79
Other comprehensive (loss) income, before tax:
Foreign currency translation adjustment	(78)	29
Net change in derivative hedge agreements:
Unrealized loss	(2)	(9)
Amount of loss reclassified into net income	3	2
Net change in postretirement benefit plans:
Amortization of prior service credit	(1)	(1)
Amortization of net actuarial loss into net income	5	3
Other comprehensive (loss) income, before tax	(73)	24
Income tax expense related to items of other comprehensive (loss) income	14	4
Other comprehensive (loss) income, net of tax	(87)	20
Comprehensive (loss) income	(49)	99
Less: comprehensive loss attributable to noncontrolling interests	(1)	0
Comprehensive (loss) income attributable to Xylem	$ (48)	$ 99

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 739	$ 724
Receivables, less allowances for discounts, returns and doubtful accounts of $29 and $35 in 2020 and 2019, respectively	975	1,036
Inventories	573	539
Prepaid and other current assets	175	151
Total current assets	2,462	2,450
Property, plant and equipment, net	628	658
Goodwill	2,790	2,839
Other intangible assets, net	1,141	1,174
Other non-current assets	570	589
Total assets	7,591	7,710
Current liabilities:
Accounts payable	506	597
Accrued and other current liabilities	619	628
Short-term borrowings and current maturities of long-term debt	459	276
Total current liabilities	1,584	1,501
Long-term debt	2,031	2,040
Accrued postretirement benefits	433	445
Deferred income tax liabilities	315	310
Other non-current accrued liabilities	407	447
Total liabilities	4,770	4,743
Commitments and contingencies (Note 18)
Stockholders’ equity:
Common Stock	2	2
Capital in excess of par value	2,004	1,991
Retained earnings	1,854	1,866
Treasury stock – at cost 14.5 shares and 13.7 shares in 2020 and 2019, respectively	(587)	(527)
Accumulated other comprehensive loss	(461)	(375)
Total stockholders’ equity	2,812	2,957
Non-controlling interests	9	10
Total equity	2,821	2,967
Total liabilities and stockholders’ equity	$ 7,591	$ 7,710

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowances for discounts and doubtful accounts on receivables	$ 33	$ 35
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	750,000,000	750,000,000
Common Stock, shares issued	193,800,000	192,900,000
Treasury Stock, shares	13,700,000	13,200,000

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating Activities
Net income	$ 38	$ 79
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	29	29
Amortization	35	35
Share-based compensation	8	9
Restructuring and asset impairment charges	2	11
Gain from sale of business	0	(1)
Other, net	4	1
Payments for restructuring	(8)	(4)
Changes in assets and liabilities (net of acquisitions):
Changes in receivables	23	7
Changes in inventories	(54)	(25)
Changes in accounts payable	(68)	(17)
Other, net	(11)	(41)
Net Cash – Operating activities	(2)	83
Investing Activities
Capital expenditures	(51)	(69)
Acquisitions of businesses, net of cash acquired	0	(5)
Other, net	3	(3)
Net Cash – Investing activities	(48)	(77)
Financing Activities
Short-term debt issued, net	193	50
Short-term debt repaid	(3)	0
Repurchase of common stock	(60)	(39)
Proceeds from exercise of employee stock options	5	4
Dividends paid	(48)	(44)
Net Cash – Financing activities	87	(29)
Effect of exchange rate changes on cash	(22)	2
Net change in cash and cash equivalents	15	(21)
Cash and cash equivalents at beginning of year	724	296
Cash and cash equivalents at end of period	739	275
Cash paid during the period for:
Interest	12	13
Income taxes (net of refunds received)	$ 8	$ 18

Restructuring Charges

Restructuring Charges	3 Months Ended
	Mar. 31, 2020
Restructuring and Related Activities [Abstract]
Restructuring Charges	Restructuring and Asset Impairment Charges Restructuring 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. During the three months ended March 31, 2020, we recognized restructuring charges of $2 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 within our Water Infrastructure segment. During the three months ended March 31, 2019, we recognized restructuring charges of $8 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 Measurement & Control Solutions and Water Infrastructure segments, as well as headcount reductions within our Applied Water segment. The following table presents the components of restructuring expense and asset impairment charges: Three Months Ended March 31, (in millions) 2020 2019 By component: Severance and other charges $ 2 $ 7 Lease related charges — 1 Total restructuring charges $ 2 $ 8 Asset impairment — 3 Total restructuring and asset impairment charges $ 2 $ 11 By segment: Water Infrastructure $ 2 $ 4 Applied Water — — Measurement & Control Solutions — 7 The following table displays a roll-forward of the restructuring accruals, presented on our Condensed Consolidated Balance Sheets within "accrued and other current liabilities" and "other non-current accrued liabilities", for the three months ended March 31, 2020 and 2019: (in millions) 2020 2019 Restructuring accruals - January 1 $ 27 $ 5 Restructuring charges 2 8 Cash payments (8) (4) Foreign currency and other (1) — Restructuring accruals - March 31 $ 20 $ 9 By segment: Water Infrastructure $ 1 $ 2 Applied Water 1 — Measurement & Control Solutions 17 4 Regional selling locations (a) 1 3 (a) Regional selling locations consist primarily of selling and marketing organizations and related support services that incurred restructuring expense which was allocated to the segments. The liabilities associated with restructuring expense were not allocated to the segments. The following table presents expected restructuring spend for actions commenced as of March 31, 2020: (in millions) Water Infrastructure Applied Water Measurement & Control Solutions Total Actions Commenced in 2020: Total expected costs $ 1 $ — $ — $ 1 Costs incurred during Q1 2020 1 — — 1 Total expected costs remaining $ — $ — $ — $ — Actions Commenced in 2019: Total expected costs $ 20 $ 5 $ 27 $ 52 Costs incurred during 2019 18 5 27 50 Costs incurred during Q1 2020 1 — — 1 Total expected costs remaining $ 1 $ — $ — $ 1 Actions Commenced in 2017: Total expected costs $ 12 $ 7 $ 4 $ 23 Costs incurred during 2017 5 4 2 11 Costs incurred during 2018 2 1 1 4 Costs incurred during 2019 1 — 1 2 Costs incurred during Q1 2020 — — — — Total expected costs remaining $ 4 $ 2 $ — $ 6 The Water Infrastructure actions commenced in 2020 consist primarily of severance charges and are substantially complete. The Water Infrastructure, Applied Water, and Measurement & Control Solutions actions commenced in 2019 consist primarily of severance charges. The Applied Water and Measurement & Control Solutions actions are complete and the Water Infrastructure actions are expected to continue through the fourth quarter of 2020. The Water Infrastructure, Applied Water and Measurement & Control Solutions actions commenced in 2017 consist primarily of severance charges. The Measurement & Control Solutions actions are complete and the Water Infrastructure and Applied Water actions are expected to continue through 2021. Asset Impairment During the first quarter of 2019 we determined that certain assets within our Measurement & Control Solutions segment, including a customer relationship, were impaired. Accordingly we recognized an impairment charge of $3 million. Refer to Note 9, "Goodwill and Other Intangible Assets," for additional information.

Background and Basis of Present

Background and Basis of Presentation	3 Months Ended
	Mar. 31, 2020
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 operates in three segments, Water Infrastructure, Applied Water and Measurement & Control Solutions. See Note 19, "Segment Information", to the condensed consolidated financial statements for further segment background information. 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 statement 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, 2019 ("2019 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 2019 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 condensed consolidated 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, contingent liabilities and lease accounting. Actual results could differ from these estimates. Our quarterly financial periods end on the Saturday closest to the last day of the calendar quarter, except for the fourth quarter which ends on December 31. For ease of presentation, the condensed consolidated financial statements included herein are described as ending on the last day of the calendar quarter.

Acquisitions and Divestitures

Acquisitions and Divestitures	3 Months Ended
	Mar. 31, 2020
Business Combinations [Abstract]
Acquisitions and Divestitures	Acquisitions and Divestitures Acquisitions During the three months ended March 31, 2020 and 2019 we spent approximately $0 million and $5 million, net of cash received on acquisition activity, respectively.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Disaggregation of Revenue The following table illustrates the sources of revenue: Three Months Ended March 31, (in millions) 2020 2019 Revenue from contracts with customers $ 1,074 $ 1,178 Lease Revenue 49 59 Total $ 1,123 $ 1,237 The following table reflects revenue from contracts with customers by application: Three Months Ended March 31, (in millions) 2020 2019 Water Infrastructure Transport $ 318 $ 346 Treatment 71 77 Applied Water Building Services 187 213 Industrial Water 151 166 Measurement & Control Solutions Water 183 199 Energy 72 73 Software as a Service 21 24 Test 71 80 Total $ 1,074 $ 1,178 The following table reflects revenue from contracts with customers by geographical region: Three Months Ended March 31, (in millions) 2020 2019 Water Infrastructure United States $ 121 $ 133 Europe 157 160 Asia Pacific 59 74 Other 52 56 Applied Water United States 191 201 Europe 82 94 Asia Pacific 24 39 Other 41 45 Measurement & Control Solutions United States 221 236 Europe 74 72 Asia Pacific 22 31 Other 30 37 Total $ 1,074 $ 1,178 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. Changes 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 January 1, 2019 $ 96 $ 113 Additions, net 39 46 Revenue recognized from opening balance — (45) Billings (32) — Other 11 2 Balance at March 31, 2019 $ 114 $ 116 Balance at January 1, 2020 $ 106 $ 135 Additions, net 42 54 Revenue recognized from opening balance — (47) Billings (38) — Other (4) (4) Balance at March 31, 2020 $ 106 $ 138 (a) Excludes receivable balances which are disclosed on the balance sheet

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
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 and discrete items. The income tax provision for the three months ended March 31, 2020 was $4 million resulting in an effective tax rate of 10.0%, compared to a $15 million charge resulting in an effective tax rate of 16.6% for the same period in 2019. The effective tax rate for the three month period ended March 31, 2020 differs from the United States federal statutory rate primarily due to the mix of earnings in jurisdictions, partially offset by the Global Intangible Low-Taxed Income ("GILTI") inclusion. Additionally, the effective tax rate for the three month period ended March 31, 2020 is lower than the same period in 2019 due to the relative impact of the benefit from favorable equity compensation deductions on the effective 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

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 2019 Net income (in millions) $ 38 $ 79 Shares (in thousands): Weighted average common shares outstanding 180,154 179,720 Add: Participating securities (a) 25 26 Weighted average common shares outstanding — Basic 180,179 179,746 Plus incremental shares from assumed conversions: (b) Dilutive effect of stock options 725 835 Dilutive effect of restricted stock units and performance share units 390 532 Weighted average common shares outstanding — Diluted 181,294 181,113 Basic earnings per share $ 0.21 $ 0.44 Diluted earnings per share $ 0.21 $ 0.43 (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 March 31, (in thousands) 2020 2019 Stock options 1,367 1,394 Restricted stock units 314 348 Performance share units 285 472

Inventories

Inventories	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Inventories	Inventories The components of total inventories are summarized as follows: (in millions) March 31, December 31, Finished goods $ 228 $ 212 Work in process 51 47 Raw materials 294 280 Total inventories $ 573 $ 539

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Mar. 31, 2020
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 three months ended March 31, 2020 are as follows: (in millions) Water Infrastructure Applied Water Measurement & Control Solutions Total Balance as of January 1, 2020 $ 651 $ 513 $ 1,675 $ 2,839 Activity in 2020 Foreign currency and other (13) (5) (31) (49) Balance as of March 31, 2020 $ 638 $ 508 $ 1,644 $ 2,790 Other Intangible Assets Information regarding our other intangible assets is as follows: March 31, 2020 December 31, 2019 (in millions) Carrying Amount Accumulated Amortization Net Intangibles Carrying Amount Accumulated Amortization Net Intangibles Customer and distributor relationships $ 931 $ (361) $ 570 $ 945 $ (352) $ 593 Proprietary technology and patents 200 (113) 87 204 (111) 93 Trademarks 145 (54) 91 148 (52) 96 Software 442 (215) 227 428 (206) 222 Other 17 (16) 1 20 (16) 4 Indefinite-lived intangibles 165 — 165 166 — 166 Other Intangibles $ 1,900 $ (759) $ 1,141 $ 1,911 $ (737) $ 1,174 Amortization expense related to finite-lived intangible assets was $35 million and $35 million for the three month periods ended March 31, 2020 and 2019, respectively. During the first quarter of 2019, we determined that the intended use of a finite-lived customer relationship within the test application of our Measurement & Control Solutions segment had changed. Accordingly we recorded a $3

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2020
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 we 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 purchased notional amounts totaling $376 million and $0 million as of March 31, 2020 and December 31, 2019, respectively. As of March 31, 2020, 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 U.S. Dollar and sell Canadian Dollar, and to sell Canadian Dollar and purchase Euro. The purchased notional amounts associated with these currency derivatives are $151 million, $117 million, $38 million, $24 million, $23 million and $18 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. During 2019 we entered into additional cross currency swaps. The total notional amount of derivative instruments designated as net investment hedges was $702 million and $714 million as of March 31, 2020 and December 31, 2019, 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 $544 million and $554 million as of March 31, 2020 and December 31, 2019, 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 March 31, (in millions) 2020 2019 Cash Flow Hedges Foreign Exchange Contracts Amount of (loss) recognized in OCI $ (2) $ (9) Amount of loss reclassified from OCI into revenue 2 1 Amount of loss reclassified from OCI into cost of revenue 1 1 Net Investment Hedges Cross Currency Swaps Amount of gain recognized in OCI $ 45 $ 7 Amount of income recognized in Interest Expense 4 3 Foreign Currency Denominated Debt Amount of gain recognized in OCI $ 10 $ 7 As of March 31, 2020, $2 million of net losses on cash flow hedges are expected to be reclassified into earnings in the next 12 months. As of March 31, 2020, no gains or losses on the net investment hedges are expected to be reclassified into earnings over their duration. The fair values of our derivative assets and liabilities are measured on a recurring basis using Level 2 inputs and are determined through the use of models that consider various assumptions including yield curves, time value and other measurements. The fair values of our foreign exchange contracts currently included in our hedging program designated as hedging instruments were as follows: (in millions) March 31, December 31, Derivatives designated as hedging instruments Assets Cash Flow Hedges Other current assets $ 6 $ — Net Investment Hedges Other non-current assets $ 29 $ 4 Liabilities Cash Flow Hedges Other current liabilities $ (9) $ — Net Investment Hedges Other non-current accrued liabilities $ (2) $ (24) The fair value of our long-term debt, due in 2023, designated as a net investment hedge was $565 million and $591 million as of March 31, 2020 and December 31, 2019, respectively.

Accrued and Other Current Liabi

Accrued and Other Current Liabilities	3 Months Ended
	Mar. 31, 2020
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) March 31, December 31, Compensation and other employee benefits $ 177 $ 199 Customer-related liabilities 155 153 Accrued taxes 73 79 Lease liabilities 56 61 Accrued warranty costs 50 36 Other accrued liabilities 108 100 Total accrued and other current liabilities $ 619 $ 628

Credit Facilities and Debt

Credit Facilities and Debt	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Credit Facilities and Debt	Credit Facilities and Debt Total debt outstanding is summarized as follows: (in millions) March 31, December 31, 4.875% Senior Notes due 2021 (a) $ 600 $ 600 2.250% Senior Notes due 2023 (a) 547 557 3.250% Senior Notes due 2026 (a) 500 500 4.375% Senior Notes due 2046 (a) 400 400 Commercial paper 268 276 Other 191 — Debt issuance costs and unamortized discount (b) (16) (17) Total debt 2,490 2,316 Less: short-term borrowings and current maturities of long-term debt 459 276 Total long-term debt $ 2,031 $ 2,040 (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 $640 million and $629 million as of March 31, 2020 and December 31, 2019, respectively. The fair value of our Senior Notes due 2023 was $565 million and $591 million as of March 31, 2020 and December 31, 2019, respectively. The fair value of our Senior Notes due 2026 was $533 million and $518 million as of March 31, 2020 and December 31, 2019, respectively. The fair value of our Senior Notes due 2046 was $400 million and $431 million as of March 31, 2020 and December 31, 2019, 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 March 31, 2020, we are in compliance with all covenants for the Senior Notes. Credit Facilities 2019 Five-Year Revolving Credit Facility On March 5, 2019, Xylem entered into a Five-Year Revolving Credit Facility (the “2019 Credit Facility”) with Citibank, N.A., as Administrative Agent, and a syndicate of lenders. The 2019 Credit Facility provides for an aggregate principal amount of up to $800 million (available in U.S. Dollars and in Euros), with increases of up to $200 million for a maximum aggregate principal amount of $1 billion at the request of Xylem and with the consent of the institutions providing such increased commitments. Interest on all loans under the 2019 Credit Facility is payable either quarterly or at the expiration of any LIBOR or EURIBOR interest period applicable thereto. Borrowings accrue interest at a rate equal to, at Xylem's election, a base rate or an adjusted LIBOR or EURIBOR rate plus an applicable margin. The 2019 Credit Facility includes customary provisions for implementation of replacement rates for LIBOR-based and EURIBOR-based loans. The 2019 Credit Facility also includes a pricing grid that determines the applicable margin based on Xylem's credit rating, with a further adjustment depending on Xylem's annual Sustainalytics Environmental, Social and Governance score. Xylem will also pay quarterly fees to each lender for such lender’s commitment to lend accruing on such commitment at a rate based on our credit rating, whether such commitment is used or unused, as well as a quarterly letter of credit fee accruing on the letter of credit exposure of such lender during the preceding quarter at a rate based on the credit rating of Xylem (as adjusted for the Environmental, Social and Governance score). The 2019 Credit Facility requires that Xylem maintain a consolidated total debt to consolidated EBITDA ratio, which will be based on the last four fiscal quarters, and in addition a number of customary covenants, including limitations on the incurrence of secured debt and debt of subsidiaries, liens, sale and lease-back transactions, mergers, consolidations, liquidations, dissolutions and sales of assets. The 2019 Credit Facility also contains customary events of default. Finally, Xylem has the ability to designate subsidiaries that can borrow under the 2019 Credit Facility, subject to certain requirements and conditions set forth in the 2019 Credit Facility. As of March 31, 2020, the 2019 Credit Facility was undrawn and we are in compliance with all covenants. Commercial Paper U.S. Dollar Commercial Paper Program Our U.S. Dollar commercial paper program generally serves as a means of short-term funding with a $600 million maximum issuing balance and a combined limit of $800 million inclusive of the 2019 Credit Facility. As of March 31, 2020 and December 31, 2019, none of the Company's $600 million U.S. Dollar commercial paper program was outstanding. We have the ability to continue borrowing under this program going forward in future periods. Euro Commercial Paper Program On June 3, 2019 Xylem entered into a Euro commercial paper program with ING Bank N.V., as administrative agent, and a syndicate of dealers. The Euro commercial paper program provides for a maximum issuing balance of up to €500 million (approximately $547 million) which may be denominated in a variety of currencies. The maximum issuing balance may be increased in accordance with the Dealer Agreement. As of March 31, 2020 and December 31, 2019, $268 million and $276 million of the Company's Euro commercial paper program was outstanding, respectively, at a weighted average interest rate of (0.21)%. We have the ability to continue borrowing under this program going forward in future periods. Other Borrowings Effective October 20, 2016, Xylem entered into an uncommitted short term facility with SEB Bank. The line of credit provides for an aggregate principal amount of up to €110 million (approximately $120 million). The full amount of €100M has been drawn on March 19, 2020 at an interest rate of 0.70% for a duration of three months with a maturity date on June 19, 2020. As of March 31, 2020 and December 31, 2019, $120 million and $0 million were outstanding under the uncommitted short term facility, respectively. Effective November 29, 2019, Xylem entered into an uncommitted short term facility with BGL BNP Paribas Bank. The line of credit provides for an aggregate principal amount of up to €65 million (approximately $71 million). The full amount of €65M has been drawn on March 19, 2020 at an interest rate of 1.25% for a duration of three months with a maturity date in June 19, 2020. No amounts were outstanding previously under the BGL BNP Paribas Bank short term facility. Subsequent Events On April 25, 2020, the Company’s subsidiary, Xylem Europe GmbH (the “borrower”) entered into a 12-month €100 million (approximately $109 million) term loan 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 April 25, 2020 to secure all present and future obligations of the borrower under the Term Loan Agreement. Borrowings accrue interest at a rate equal to the EURIBOR or a replacement base rate, plus an applicable margin based on Xylem's credit rating. Xylem will also pay quarterly fees whether such commitment is used or unused. To date none of the ING Bank term facility has been drawn down upon. On April 30, 2020, the Company entered into a 12-month $50 million term loan facility the terms of which are set forth in a term loan agreement among the Company and Australia and New Zealand Banking Group Limited. Borrowings accrue interest at a rate equal to an adjusted LIBOR rate plus 1.50%. The full amount of $50 million has been drawn down upon on April 30, 2020.

Postretirement Benefit Plans

Postretirement Benefit Plans	3 Months Ended
	Mar. 31, 2020
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 March 31, (in millions) 2020 2019 Domestic defined benefit pension plans: Service cost $ 1 $ 1 Interest cost 1 1 Expected return on plan assets (2) (2) Amortization of net actuarial loss 1 — Net periodic benefit cost $ 1 $ — International defined benefit pension plans: Service cost $ 3 $ 3 Interest cost 4 5 Expected return on plan assets (4) (9) Amortization of net actuarial loss 3 2 Net periodic benefit cost $ 6 $ 1 Total net periodic benefit cost $ 7 $ 1 The components of net periodic benefit cost other than the service cost component are included in the line item "Other non-operating income, net" in the Condensed Consolidated Income Statements. The total net periodic benefit cost for other postretirement employee benefit plans was less than $1 million including net credits recognized into other comprehensive income of less than $1 million for the three months ended March 31, 2020 and March 31, 2019, respectively. We contributed $12 million and $5 million to our defined benefit plans during the three months ended March 31, 2020 and 2019, respectively. Additional contributions ranging between approximately $10 million and $20 million are expected during the remainder of 2020. During Q1 2020, the Company purchased a bulk annuity policy with an insurance company for its largest defined benefit plan in the UK, as a plan asset, to facilitate the termination and buy-out of the plan. The bulk annuity fully insures the benefits payable to the participants of the plan until a full buy-out of the plan can be executed, which is expected to occur in 2021. Included in the Company's Q1 contributions is $5 million paid to meet the shortfall between the cost of the bulk annuity policy and the plan assets. As a result of the change in assets from a mix of equities and bonds to the bulk annuity, the plan's expected rate of return on assets was reduced to 1.00% at December 31, 2019. The rate at December 31, 2018 was 7.25%. On January 27, 2020, the plan's assets of $336 million were transferred to the insurance company for the purchase of the bulk annuity.

Equity

Equity	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Equity	Equity The following table shows the changes in stockholders' equity for the three months ended March 31, 2020: Common Retained Accumulated Other Treasury Stock Non-Controlling Interest Total Balance at January 1, 2020 $ 2 $ 1,991 $ 1,866 $ (375) $ (527) $ 10 $ 2,967 Cumulative effect of change in accounting principle (2) (2) Net income — — 38 — — — 38 Other comprehensive loss, net — — — (86) — (1) (87) Dividends declared ($0.26 per share) — — (48) — — — (48) Stock incentive plan activity — 13 — — (10) — 3 Repurchase of common stock — — — — (50) — (50) Balance at March 31, 2020 $ 2 $ 2,004 $ 1,854 $ (461) $ (587) $ 9 $ 2,821 The following table shows the changes in stockholders' equity for the three months ended March 31, 2019: Common Retained Accumulated Other Treasury Stock Non-Controlling Interest Total Balance at January 1, 2019 $ 2 $ 1,950 $ 1,639 $ (336) $ (487) $ 14 $ 2,782 Sale of business — — — — — (2) (2) Net income — — 79 — — — 79 Other comprehensive income, net — — — 20 — — 20 Dividends declared ($0.24 per share) — — (44) — — — (44) Stock incentive plan activity — 12 — — (14) — (2) Repurchase of common stock — — — — (25) — (25) Balance at March 31, 2019 $ 2 $ 1,962 $ 1,674 $ (316) $ (526) $ 12 $ 2,808

Share-Based Compensation Plans

Share-Based Compensation Plans	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Share-Based Compensation Plans	Share-Based Compensation Plans Share-based compensation expense was $8 million and $9 million during the three months ended March 31, 2020 and 2019, respectively. The unrecognized compensation expense related to our stock options, restricted stock units and performance share units was $9 million, $29 million and $15 million, respectively, at March 31, 2020 and is expected to be recognized over a weighted average period of 2.3, 2.2 and 2.4 years, respectively. The amount of cash received from the exercise of stock options was $5 million and $4 million for the three months ended March 31, 2020 and 2019, respectively. Stock Option Grants The following is a summary of the changes in outstanding stock options for the three months ended March 31, 2020 : Share units (in thousands) Weighted Average Exercise Price / Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding at January 1, 2020 2,040 $ 48.56 6.3 Granted 334 80.66 Exercised (130) 41.18 Forfeited and expired (5) 74.37 Outstanding at March 31, 2020 2,239 $ 53.72 6.7 $ 37 Options exercisable at March 31, 2020 1,615 $ 44.45 5.7 $ 36 Vested and expected to vest as of March 31, 2020 2,146 $ 52.67 6.5 $ 36 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 three months ended March 31, 2020 was $5.6 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 2020 grants: Volatility 22.90 % Risk-free interest rate 1.15 % Dividend yield 1.29 % Expected term (in years) 5.8 Weighted-average fair value / share $ 16.03 Expected volatility is calculated based on an analysis of historic volatility measures for 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 United States 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 three months ended March 31, 2020 . The fair value of the restricted share unit awards is determined using the closing price of our common stock on date of grant: Share units (in thousands) Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2020 512 $ 68.95 Granted 219 80.66 Vested (200) 64.84 Forfeited (9) 71.20 Outstanding at March 31, 2020 522 $ 75.34 ROIC Performance Share Unit Grants The following is a summary of Return on Invested Capital ("ROIC") performance share unit grants for the three months ended March 31, 2020. 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, 2020 225 $ 64.51 Granted 67 80.66 Vested (89) 49.15 Forfeited (1) 74.17 Outstanding at March 31, 2020 202 $ 76.60 TSR Performance Share Unit Grants The following is a summary of our Total Shareholder Return ("TSR") performance share unit grants for the three months ended March 31, 2020: Share units (in thousands) Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2020 225 $ 75.80 Granted 67 105.66 Adjustment for Market Condition Achieved (a) 35 49.15 Vested (124) 49.15 Forfeited (1) 74.17 Outstanding at March 31, 2020 202 $ 97.97 (a) Represents an increase in the number of original TSR performance share units awarded based on the final market condition achievement at the end of the performance period of such awards. 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 2020 grants: Volatility 22.6 % Risk-free interest rate 1.08 %

Capital Stock

Capital Stock	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Capital Stock	Capital Stock For the three months ended March 31, 2020 and March 31, 2019 the Company repurchased approximately 0.8 million shares of common stock for $60 million and approximately 0.5 million shares of common stock for $39 million, 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. There were approximately 0.7 million shares repurchased for $50 million under this program for the three months ended March 31, 2020. For the three months ended March 31, 2019, we repurchased approximately 0.3 million shares for $25 million. There are up to $288 million in shares that may still be purchased under this plan as of March 31, 2020.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Loss The following table provides the components of accumulated other comprehensive loss for the three months ended March 31, 2020: (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at January 1, 2020 $ (103) $ (269) $ (3) $ (375) Foreign currency translation adjustment (77) — — (77) Tax on foreign currency translation adjustment (13) — — (13) Amortization of prior service cost and net actuarial loss on postretirement benefit plans into other non-operating income (expense), net — 4 — 4 Income tax impact on amortization of postretirement benefit plan items — (1) — (1) Unrealized loss on derivative hedge agreements — — (2) (2) Reclassification of unrealized loss on foreign exchange agreements into revenue — — 2 2 Reclassification of unrealized loss on foreign exchange agreements into cost of revenue — — 1 1 Balance at March 31, 2020 $ (193) $ (266) $ (2) $ (461) The following table provides the components of accumulated other comprehensive loss for the three months ended March 31, 2019: (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at January 1, 2019 $ (121) $ (214) $ (1) $ (336) Foreign currency translation adjustment 29 — — 29 Tax on foreign currency translation adjustment (4) — — (4) Amortization of prior service cost and net actuarial loss on postretirement benefit plans into other non-operating income (expense), net — 2 — 2 Income tax impact on amortization of postretirement benefit plan items — (1) — (1) Unrealized loss on derivative hedge agreements — — (9) (9) Income tax benefit on unrealized loss on derivative hedge agreements — — 1 1 Reclassification of unrealized loss on derivative hedge agreements into revenue — — 1 1 Reclassification of unrealized loss on foreign exchange agreements into cost of revenue — — 1 1 Balance at March 31, 2019 $ (96) $ (213) $ (7) $ (316)

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings From time to time we are involved in legal and regulatory proceedings that are incidental to the operation of our businesses (or the business operations of previously-owned entities). These proceedings may seek remedies relating to environmental matters, tax, intellectual property matters, acquisitions or divestitures, product liability and personal injury claims, privacy, employment, labor and pension matters, government contract issues and commercial or contractual 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. See Note 6, "Income Taxes", of our condensed consolidated financial statements for a description of a pending tax litigation matter. 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 believe it is reasonably possible 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 $3 million and $5 million as of March 31, 2020 and December 31, 2019, respectively, for these general legal 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’ indemnification obligations under the Distribution Agreement. Guarantees We obtain certain stand-by letters of credit, bank guarantees, surety bonds and insurance letters of credit from third-party financial institutions in the ordinary course of business when required under contracts or to satisfy insurance related requirements. As of March 31, 2020 and December 31, 2019, the amount of surety bonds, bank guarantees, stand-by letters of credit and insurance letters of credit was $330 million and $340 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 United States 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 our 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 $3 million and $3 million as of March 31, 2020 and December 31, 2019, 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) 2020 2019 Warranty accrual – January 1 $ 41 $ 60 Net charges for product warranties in the period 22 5 Settlement of warranty claims (7) (13) Foreign currency and other (1) — Warranty accrual - March 31 $ 55 $ 52

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2020
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, wastewater and storm water 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 2019 Annual Report). The following tables contain financial information for each reportable segment: Three Months Ended March 31, (in millions) 2020 2019 Revenue: Water Infrastructure $ 438 $ 482 Applied Water 338 379 Measurement & Control Solutions 347 376 Total $ 1,123 $ 1,237 Operating Income: Water Infrastructure $ 39 $ 51 Applied Water 47 56 Measurement & Control Solutions (12) 16 Corporate and other (13) (14) Total operating income $ 61 $ 109 Interest expense $ 16 18 Other non-operating (expense) income, net (3) 2 Gain from sale of business — 1 Income before taxes $ 42 $ 94 Depreciation and Amortization: Water Infrastructure $ 15 $ 15 Applied Water 6 6 Measurement & Control Solutions 36 36 Regional selling locations (a) 4 4 Corporate and other 3 3 Total $ 64 $ 64 Capital Expenditures: Water Infrastructure $ 10 $ 30 Applied Water 9 6 Measurement & Control Solutions 27 24 Regional selling locations (b) 4 4 Corporate and other 1 5 Total $ 51 $ 69 (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.

Background and Basis of Prese_2

Background and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2020
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 statement 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, 2019 ("2019 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 2019 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 condensed consolidated 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, contingent liabilities and lease accounting. Actual results could differ from these estimates. Our quarterly financial periods end on the Saturday closest to the last day of the calendar quarter, except for the fourth quarter which ends on December 31. For ease of presentation, the condensed consolidated financial statements included herein are described as ending on the last day of the calendar quarter.
Pronouncements Not Yet Adopted and Recently Adopted Pronouncements	Recently Adopted Pronouncements In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments," amending the accounting for the impairment of financial instruments, including trade receivables. Under previous guidance, credit losses were recognized when the applicable losses had a probable likelihood of occurring and this assessment was based on past events and current conditions. The amended current 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

Restructuring Charges (Tables)

Restructuring Charges (Tables)	3 Months Ended
	Mar. 31, 2020
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 March 31, (in millions) 2020 2019 By component: Severance and other charges $ 2 $ 7 Lease related charges — 1 Total restructuring charges $ 2 $ 8 Asset impairment — 3 Total restructuring and asset impairment charges $ 2 $ 11 By segment: Water Infrastructure $ 2 $ 4 Applied Water — — Measurement & Control Solutions — 7
Restructuring Accruals	The following table displays a roll-forward of the restructuring accruals, presented on our Condensed Consolidated Balance Sheets within "accrued and other current liabilities" and "other non-current accrued liabilities", for the three months ended March 31, 2020 and 2019: (in millions) 2020 2019 Restructuring accruals - January 1 $ 27 $ 5 Restructuring charges 2 8 Cash payments (8) (4) Foreign currency and other (1) — Restructuring accruals - March 31 $ 20 $ 9 By segment: Water Infrastructure $ 1 $ 2 Applied Water 1 — Measurement & Control Solutions 17 4 Regional selling locations (a) 1 3 (a) Regional selling locations consist primarily of selling and marketing organizations and related support services that incurred restructuring expense which was allocated to the segments. The liabilities associated with restructuring expense were not allocated to the segments.
Expected Restructuring Costs	The following table presents expected restructuring spend for actions commenced as of March 31, 2020: (in millions) Water Infrastructure Applied Water Measurement & Control Solutions Total Actions Commenced in 2020: Total expected costs $ 1 $ — $ — $ 1 Costs incurred during Q1 2020 1 — — 1 Total expected costs remaining $ — $ — $ — $ — Actions Commenced in 2019: Total expected costs $ 20 $ 5 $ 27 $ 52 Costs incurred during 2019 18 5 27 50 Costs incurred during Q1 2020 1 — — 1 Total expected costs remaining $ 1 $ — $ — $ 1 Actions Commenced in 2017: Total expected costs $ 12 $ 7 $ 4 $ 23 Costs incurred during 2017 5 4 2 11 Costs incurred during 2018 2 1 1 4 Costs incurred during 2019 1 — 1 2 Costs incurred during Q1 2020 — — — — Total expected costs remaining $ 4 $ 2 $ — $ 6

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table illustrates the sources of revenue: Three Months Ended March 31, (in millions) 2020 2019 Revenue from contracts with customers $ 1,074 $ 1,178 Lease Revenue 49 59 Total $ 1,123 $ 1,237 The following table reflects revenue from contracts with customers by application: Three Months Ended March 31, (in millions) 2020 2019 Water Infrastructure Transport $ 318 $ 346 Treatment 71 77 Applied Water Building Services 187 213 Industrial Water 151 166 Measurement & Control Solutions Water 183 199 Energy 72 73 Software as a Service 21 24 Test 71 80 Total $ 1,074 $ 1,178 The following table reflects revenue from contracts with customers by geographical region: Three Months Ended March 31, (in millions) 2020 2019 Water Infrastructure United States $ 121 $ 133 Europe 157 160 Asia Pacific 59 74 Other 52 56 Applied Water United States 191 201 Europe 82 94 Asia Pacific 24 39 Other 41 45 Measurement & Control Solutions United States 221 236 Europe 74 72 Asia Pacific 22 31 Other 30 37 Total $ 1,074 $ 1,178
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 January 1, 2019 $ 96 $ 113 Additions, net 39 46 Revenue recognized from opening balance — (45) Billings (32) — Other 11 2 Balance at March 31, 2019 $ 114 $ 116 Balance at January 1, 2020 $ 106 $ 135 Additions, net 42 54 Revenue recognized from opening balance — (47) Billings (38) — Other (4) (4) Balance at March 31, 2020 $ 106 $ 138 (a) Excludes receivable balances which are disclosed on the balance sheet

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 2019 Net income (in millions) $ 38 $ 79 Shares (in thousands): Weighted average common shares outstanding 180,154 179,720 Add: Participating securities (a) 25 26 Weighted average common shares outstanding — Basic 180,179 179,746 Plus incremental shares from assumed conversions: (b) Dilutive effect of stock options 725 835 Dilutive effect of restricted stock units and performance share units 390 532 Weighted average common shares outstanding — Diluted 181,294 181,113 Basic earnings per share $ 0.21 $ 0.44 Diluted earnings per share $ 0.21 $ 0.43 (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 March 31, (in thousands) 2020 2019 Stock options 1,367 1,394 Restricted stock units 314 348 Performance share units 285 472

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Inventories	The components of total inventories are summarized as follows: (in millions) March 31, December 31, Finished goods $ 228 $ 212 Work in process 51 47 Raw materials 294 280 Total inventories $ 573 $ 539

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2020
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 three months ended March 31, 2020 are as follows: (in millions) Water Infrastructure Applied Water Measurement & Control Solutions Total Balance as of January 1, 2020 $ 651 $ 513 $ 1,675 $ 2,839 Activity in 2020 Foreign currency and other (13) (5) (31) (49) Balance as of March 31, 2020 $ 638 $ 508 $ 1,644 $ 2,790
Other Intangible Assets	Information regarding our other intangible assets is as follows: March 31, 2020 December 31, 2019 (in millions) Carrying Amount Accumulated Amortization Net Intangibles Carrying Amount Accumulated Amortization Net Intangibles Customer and distributor relationships $ 931 $ (361) $ 570 $ 945 $ (352) $ 593 Proprietary technology and patents 200 (113) 87 204 (111) 93 Trademarks 145 (54) 91 148 (52) 96 Software 442 (215) 227 428 (206) 222 Other 17 (16) 1 20 (16) 4 Indefinite-lived intangibles 165 — 165 166 — 166 Other Intangibles $ 1,900 $ (759) $ 1,141 $ 1,911 $ (737) $ 1,174

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2020
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 March 31, (in millions) 2020 2019 Cash Flow Hedges Foreign Exchange Contracts Amount of (loss) recognized in OCI $ (2) $ (9) Amount of loss reclassified from OCI into revenue 2 1 Amount of loss reclassified from OCI into cost of revenue 1 1 Net Investment Hedges Cross Currency Swaps Amount of gain recognized in OCI $ 45 $ 7 Amount of income recognized in Interest Expense 4 3 Foreign Currency Denominated Debt Amount of gain recognized in OCI $ 10 $ 7
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) March 31, December 31, Derivatives designated as hedging instruments Assets Cash Flow Hedges Other current assets $ 6 $ — Net Investment Hedges Other non-current assets $ 29 $ 4 Liabilities Cash Flow Hedges Other current liabilities $ (9) $ — Net Investment Hedges Other non-current accrued liabilities $ (2) $ (24)

Accrued and Other Current Lia_2

Accrued and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2020
Payables and Accruals [Abstract]
Accrued and Other Current Liabilities	The components of total accrued and other current liabilities are as follows: (in millions) March 31, December 31, Compensation and other employee benefits $ 177 $ 199 Customer-related liabilities 155 153 Accrued taxes 73 79 Lease liabilities 56 61 Accrued warranty costs 50 36 Other accrued liabilities 108 100 Total accrued and other current liabilities $ 619 $ 628

Credit Facilities and Debt (Tab

Credit Facilities and Debt (Tables)	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Schedule of Credit Facilities and Long-Term Debt	Total debt outstanding is summarized as follows: (in millions) March 31, December 31, 4.875% Senior Notes due 2021 (a) $ 600 $ 600 2.250% Senior Notes due 2023 (a) 547 557 3.250% Senior Notes due 2026 (a) 500 500 4.375% Senior Notes due 2046 (a) 400 400 Commercial paper 268 276 Other 191 — Debt issuance costs and unamortized discount (b) (16) (17) Total debt 2,490 2,316 Less: short-term borrowings and current maturities of long-term debt 459 276 Total long-term debt $ 2,031 $ 2,040 (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 $640 million and $629 million as of March 31, 2020 and December 31, 2019, respectively. The fair value of our Senior Notes due 2023 was $565 million and $591 million as of March 31, 2020 and December 31, 2019, respectively. The fair value of our Senior Notes due 2026 was $533 million and $518 million as of March 31, 2020 and December 31, 2019, respectively. The fair value of our Senior Notes due 2046 was $400 million and $431 million as of March 31, 2020 and December 31, 2019, respectively. (b) The debt issuance costs and unamortized discount are recognized as a reduction in the carrying value of the Senior Notes in the Condensed Consolidated Balance Sheets and are being amortized to interest expense in our Condensed Consolidated Income Statements over the expected remaining terms of the Senior Notes.

Postretirement Benefit Plans (T

Postretirement Benefit Plans (Tables)	3 Months Ended
	Mar. 31, 2020
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 March 31, (in millions) 2020 2019 Domestic defined benefit pension plans: Service cost $ 1 $ 1 Interest cost 1 1 Expected return on plan assets (2) (2) Amortization of net actuarial loss 1 — Net periodic benefit cost $ 1 $ — International defined benefit pension plans: Service cost $ 3 $ 3 Interest cost 4 5 Expected return on plan assets (4) (9) Amortization of net actuarial loss 3 2 Net periodic benefit cost $ 6 $ 1 Total net periodic benefit cost $ 7 $ 1

Equity (Tables)

Equity (Tables)	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Schedule of Stockholders Equity	The following table shows the changes in stockholders' equity for the three months ended March 31, 2020: Common Retained Accumulated Other Treasury Stock Non-Controlling Interest Total Balance at January 1, 2020 $ 2 $ 1,991 $ 1,866 $ (375) $ (527) $ 10 $ 2,967 Cumulative effect of change in accounting principle (2) (2) Net income — — 38 — — — 38 Other comprehensive loss, net — — — (86) — (1) (87) Dividends declared ($0.26 per share) — — (48) — — — (48) Stock incentive plan activity — 13 — — (10) — 3 Repurchase of common stock — — — — (50) — (50) Balance at March 31, 2020 $ 2 $ 2,004 $ 1,854 $ (461) $ (587) $ 9 $ 2,821 The following table shows the changes in stockholders' equity for the three months ended March 31, 2019: Common Retained Accumulated Other Treasury Stock Non-Controlling Interest Total Balance at January 1, 2019 $ 2 $ 1,950 $ 1,639 $ (336) $ (487) $ 14 $ 2,782 Sale of business — — — — — (2) (2) Net income — — 79 — — — 79 Other comprehensive income, net — — — 20 — — 20 Dividends declared ($0.24 per share) — — (44) — — — (44) Stock incentive plan activity — 12 — — (14) — (2) Repurchase of common stock — — — — (25) — (25) Balance at March 31, 2019 $ 2 $ 1,962 $ 1,674 $ (316) $ (526) $ 12 $ 2,808

Share-Based Compensation Plans

Share-Based Compensation Plans (Tables)	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Summary of restricted stock activity	The following is a summary of restricted stock unit activity for the three months ended March 31, 2020 . The fair value of the restricted share unit awards is determined using the closing price of our common stock on date of grant: Share units (in thousands) Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2020 512 $ 68.95 Granted 219 80.66 Vested (200) 64.84 Forfeited (9) 71.20 Outstanding at March 31, 2020 522 $ 75.34
Summary of performance based share grants	The following is a summary of Return on Invested Capital ("ROIC") performance share unit grants for the three months ended March 31, 2020. 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, 2020 225 $ 64.51 Granted 67 80.66 Vested (89) 49.15 Forfeited (1) 74.17 Outstanding at March 31, 2020 202 $ 76.60 TSR Performance Share Unit Grants The following is a summary of our Total Shareholder Return ("TSR") performance share unit grants for the three months ended March 31, 2020: Share units (in thousands) Weighted Average Grant Date Fair Value /Share Outstanding at January 1, 2020 225 $ 75.80 Granted 67 105.66 Adjustment for Market Condition Achieved (a) 35 49.15 Vested (124) 49.15 Forfeited (1) 74.17 Outstanding at March 31, 2020 202 $ 97.97
Summary of the changes in outstanding stock options	The following is a summary of the changes in outstanding stock options for the three months ended March 31, 2020 : Share units (in thousands) Weighted Average Exercise Price / Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding at January 1, 2020 2,040 $ 48.56 6.3 Granted 334 80.66 Exercised (130) 41.18 Forfeited and expired (5) 74.37 Outstanding at March 31, 2020 2,239 $ 53.72 6.7 $ 37 Options exercisable at March 31, 2020 1,615 $ 44.45 5.7 $ 36 Vested and expected to vest as of March 31, 2020 2,146 $ 52.67 6.5 $ 36
Stock option valuation assumptions	The following are weighted-average assumptions for 2020 grants: Volatility 22.90 % Risk-free interest rate 1.15 % Dividend yield 1.29 % Expected term (in years) 5.8 Weighted-average fair value / share $ 16.03
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 2020 grants: Volatility 22.6 % Risk-free interest rate 1.08 %

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table provides the components of accumulated other comprehensive loss for the three months ended March 31, 2020: (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at January 1, 2020 $ (103) $ (269) $ (3) $ (375) Foreign currency translation adjustment (77) — — (77) Tax on foreign currency translation adjustment (13) — — (13) Amortization of prior service cost and net actuarial loss on postretirement benefit plans into other non-operating income (expense), net — 4 — 4 Income tax impact on amortization of postretirement benefit plan items — (1) — (1) Unrealized loss on derivative hedge agreements — — (2) (2) Reclassification of unrealized loss on foreign exchange agreements into revenue — — 2 2 Reclassification of unrealized loss on foreign exchange agreements into cost of revenue — — 1 1 Balance at March 31, 2020 $ (193) $ (266) $ (2) $ (461) The following table provides the components of accumulated other comprehensive loss for the three months ended March 31, 2019: (in millions) Foreign Currency Translation Postretirement Benefit Plans Derivative Instruments Total Balance at January 1, 2019 $ (121) $ (214) $ (1) $ (336) Foreign currency translation adjustment 29 — — 29 Tax on foreign currency translation adjustment (4) — — (4) Amortization of prior service cost and net actuarial loss on postretirement benefit plans into other non-operating income (expense), net — 2 — 2 Income tax impact on amortization of postretirement benefit plan items — (1) — (1) Unrealized loss on derivative hedge agreements — — (9) (9) Income tax benefit on unrealized loss on derivative hedge agreements — — 1 1 Reclassification of unrealized loss on derivative hedge agreements into revenue — — 1 1 Reclassification of unrealized loss on foreign exchange agreements into cost of revenue — — 1 1 Balance at March 31, 2019 $ (96) $ (213) $ (7) $ (316)

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2020
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) 2020 2019 Warranty accrual – January 1 $ 41 $ 60 Net charges for product warranties in the period 22 5 Settlement of warranty claims (7) (13) Foreign currency and other (1) — Warranty accrual - March 31 $ 55 $ 52

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2020
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 2019 Annual Report). The following tables contain financial information for each reportable segment: Three Months Ended March 31, (in millions) 2020 2019 Revenue: Water Infrastructure $ 438 $ 482 Applied Water 338 379 Measurement & Control Solutions 347 376 Total $ 1,123 $ 1,237 Operating Income: Water Infrastructure $ 39 $ 51 Applied Water 47 56 Measurement & Control Solutions (12) 16 Corporate and other (13) (14) Total operating income $ 61 $ 109 Interest expense $ 16 18 Other non-operating (expense) income, net (3) 2 Gain from sale of business — 1 Income before taxes $ 42 $ 94 Depreciation and Amortization: Water Infrastructure $ 15 $ 15 Applied Water 6 6 Measurement & Control Solutions 36 36 Regional selling locations (a) 4 4 Corporate and other 3 3 Total $ 64 $ 64 Capital Expenditures: Water Infrastructure $ 10 $ 30 Applied Water 9 6 Measurement & Control Solutions 27 24 Regional selling locations (b) 4 4 Corporate and other 1 5 Total $ 51 $ 69 (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.

Background and Basis of Prese_3

Background and Basis of Presentation (Details)	3 Months Ended
	Mar. 31, 2020
Background and Basis of Presentation (Textual) [Abstract]
Number of operating segment	3

Acquisitions and Divestitures (

Acquisitions and Divestitures (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Business Combinations [Abstract]
Acquisition of business, net of cash acquired	$ 0	$ 5

Restructuring Charges (Textuals

Restructuring Charges (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 2	$ 8
Asset impairment	0	3
Measurement & Control Solutions
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0	7
Asset impairment		$ 3

Restructuring Charges (Restruct

Restructuring Charges (Restructuring Charges) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Restructuring Cost and Impairment Charge
Severance and other charges	$ 2	$ 7
Lease related charges	0	1
Restructuring charges	2	8
Asset impairment	0	3
Total restructuring and asset impairment charges	2	11
Water Infrastructure
Restructuring Cost and Impairment Charge
Restructuring charges	2	4
Applied Water
Restructuring Cost and Impairment Charge
Restructuring charges	0	0
Measurement & Control Solutions
Restructuring Cost and Impairment Charge
Restructuring charges	$ 0	7
Asset impairment		$ 3

Restructuring Charges (Accrual

Restructuring Charges (Accrual Rollfoward) (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Restructuring Reserve [Roll Forward]
Restructuring accruals - January 1		$ 27	$ 5
Restructuring charges		2	8
Cash payments		(8)	(4)
Foreign currency and other		(1)	0
Restructuring accruals - March 31		20	9
Water Infrastructure
Restructuring Reserve [Roll Forward]
Restructuring charges		2	4
Restructuring accruals - March 31		1	2
Applied Water
Restructuring Reserve [Roll Forward]
Restructuring charges		0	0
Restructuring accruals - March 31		1	0
Measurement & Control Solutions
Restructuring Reserve [Roll Forward]
Restructuring charges		0	7
Restructuring accruals - March 31		17	4
Regional Selling Locations
Restructuring Reserve [Roll Forward]
Restructuring accruals - March 31	[1]	$ 1	$ 3
[1]	Regional selling locations consist primarily of selling and marketing organizations and related support services that incurred restructuring expense which was allocated to the segments. The liabilities associated with restructuring expense were not allocated to the segments.

Restructuring Charges (Estimate

Restructuring Charges (Estimated Restructuring Costs) (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
2020 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	$ 1
Restructuring costs incurred during period	1
Total expected costs remaining	0
2019 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	52
Restructuring costs incurred during period	1	$ 50
Total expected costs remaining	1
2017 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	23
Restructuring costs incurred during period	0	2	$ 4	$ 11
Total expected costs remaining	6
Operating Segments | Water Infrastructure | 2020 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	1
Restructuring costs incurred during period	1
Total expected costs remaining	0
Operating Segments | Water Infrastructure | 2019 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	20
Restructuring costs incurred during period	1	18
Total expected costs remaining	1
Operating Segments | Water Infrastructure | 2017 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	12
Restructuring costs incurred during period	0	1	2	5
Total expected costs remaining	4
Operating Segments | Applied Water | 2020 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	0
Restructuring costs incurred during period	0
Total expected costs remaining	0
Operating Segments | Applied Water | 2019 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	5
Restructuring costs incurred during period	0	5
Total expected costs remaining	0
Operating Segments | Applied Water | 2017 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	7
Restructuring costs incurred during period	0	0	1	4
Total expected costs remaining	2
Operating Segments | Measurement & Control Solutions | 2020 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	0
Restructuring costs incurred during period	0
Total expected costs remaining	0
Operating Segments | Measurement & Control Solutions | 2019 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	27
Restructuring costs incurred during period	0	27
Total expected costs remaining	0
Operating Segments | Measurement & Control Solutions | 2017 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	4
Restructuring costs incurred during period	0	$ 1	$ 1	$ 2
Total expected costs remaining	$ 0

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 1,074	$ 1,178
Lease Revenue	49	59
Total	1,123	1,237
Water Infrastructure
Disaggregation of Revenue [Line Items]
Total	438	482
Water Infrastructure | United States
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	121	133
Water Infrastructure | Europe
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	157	160
Water Infrastructure | Asia Pacific
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	59	74
Water Infrastructure | Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	52	56
Water Infrastructure | Transport
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	318	346
Water Infrastructure | Treatment
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	71	77
Applied Water
Disaggregation of Revenue [Line Items]
Total	338	379
Applied Water | United States
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	191	201
Applied Water | Europe
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	82	94
Applied Water | Asia Pacific
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	24	39
Applied Water | Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	41	45
Applied Water | Building Services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	187	213
Applied Water | Industrial Water
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	151	166
Measurement & Control Solutions
Disaggregation of Revenue [Line Items]
Total	347	376
Measurement & Control Solutions | United States
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	221	236
Measurement & Control Solutions | Europe
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	74	72
Measurement & Control Solutions | Asia Pacific
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	22	31
Measurement & Control Solutions | Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	30	37
Measurement & Control Solutions | Water
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	183	199
Measurement & Control Solutions | Energy
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	72	73
Measurement & Control Solutions | Software as a Service
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	21	24
Measurement & Control Solutions | Test
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 71	$ 80

Revenue (Details)

Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Change in Contract with Customer, Asset [Abstract]
Beginning balance	$ 106	$ 96
Additions, net	42	39
Billings	(38)	(32)
Other	(4)	11
Ending balance	106	114
Change in Contract with Customer, Liability [Abstract]
Beginning balance	135	113
Additions, net	54	46
Revenue recognized from opening balance	(47)	(45)
Other	(4)	2
Ending balance	$ 138	$ 116

Revenue (Narrative) (Details)

Revenue (Narrative) (Details) $ in Millions	Mar. 31, 2020USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 380
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Expected timing of recognition	60 months

Income Taxes (Textuals) (Detail

Income Taxes (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Jun. 30, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income tax provision	$ 4	$ 15
Effective tax rate	10.00%	16.60%
Unrecognized tax benefits	$ 128			$ 129
Interest accrued for unrecognized tax benefits	$ 9
Assessment for tax, penalties and interest				$ 80
Scenario, Forecast
Income Tax Contingency [Line Items]
Reduction from statute of limitations			$ 4

Earnings Per Share (Calculation

Earnings Per Share (Calculations for EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Basic and diluted net earnings per share:
Net income attributable to Xylem (in usd)		$ 38	$ 79
Shares
Weighted average common shares outstanding		180,154	179,720
Add: Participating securities	[1]	25	26
Weighted average common shares outstanding — Basic		180,179	179,746
Plus incremental shares from assumed conversions:
Weighted average common shares outstanding — Diluted		181,294	181,113
Basic earnings per share (usd per share)		$ 0.21	$ 0.44
Diluted earnings per share (usd per share)		$ 0.21	$ 0.43
Stock Options
Plus incremental shares from assumed conversions:
Dilutive effect of common shares	[2]	725	835
Restricted Stock
Plus incremental shares from assumed conversions:
Dilutive effect of common shares	[2]	390	532
[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, "Share-Based Compensation Plans", to the condensed consolidated financial statements for further detail on the performance share units.

Earnings Per Share (Summary of

Earnings Per Share (Summary of Antidilutive Securities) (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Stock Options
Incremental shares from stock options and restricted stock:
Antidilutive securities (in shares)	1,367	1,394
Restricted Stock
Incremental shares from stock options and restricted stock:
Antidilutive securities (in shares)	314	348
Performance Based Shares
Incremental shares from stock options and restricted stock:
Antidilutive securities (in shares)	285	472

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Inventories
Finished goods	$ 228	$ 212
Work in process	51	47
Raw materials	294	280
Total inventories	$ 573	$ 539

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets (Goodwill Rollforward) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020USD ($)
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2020	$ 2,839
Foreign currency and other	(49)
Balance as of March 31, 2020	2,790
Water Infrastructure
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2020	651
Foreign currency and other	(13)
Balance as of March 31, 2020	638
Applied Water
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2020	513
Foreign currency and other	(5)
Balance as of March 31, 2020	508
Measurement & Control Solutions
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2020	1,675
Foreign currency and other	(31)
Balance as of March 31, 2020	$ 1,644

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets (Summary of Intangible Assets) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Goodwill and Other Intangible Assets
Accumulated Amortization	$ (759)	$ (737)
Intangible Assets Gross, Carrying Amount	1,900	1,911
Intangible Assets, Net Intangibles	1,141	1,174
Amortization	35
Customer and distributor relationships
Goodwill and Other Intangible Assets
Carrying Amount	931	945
Accumulated Amortization	(361)	(352)
Net Intangibles	570	593
Proprietary technology and patents
Goodwill and Other Intangible Assets
Carrying Amount	200	204
Accumulated Amortization	(113)	(111)
Net Intangibles	87	93
Trademarks
Goodwill and Other Intangible Assets
Carrying Amount	145	148
Accumulated Amortization	(54)	(52)
Net Intangibles	91	96
Software
Goodwill and Other Intangible Assets
Carrying Amount	442	428
Accumulated Amortization	(215)	(206)
Net Intangibles	227	222
Other
Goodwill and Other Intangible Assets
Carrying Amount	17	20
Accumulated Amortization	(16)	(16)
Net Intangibles	1	4
Indefinite-lived intangibles
Goodwill and Other Intangible Assets
Accumulated Amortization	0	0
Indefinite-lived intangibles	$ 165	$ 166

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense related to finite-lived intangible assets	$ 35
Impairment charge		$ 3

Derivative Financial Instrume_3

Derivative Financial Instruments (Effect of Deriative Instruments on Income Statement and Statement of Comprehensive Income) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI	$ 2	$ 9
Amount of gain reclassified from OCI into revenue	(1,123)	(1,237)
Reclassification out of Accumulated Other Comprehensive Income | Foreign Exchange Contract
Derivative Financial Instruments
Amount of gain reclassified from OCI into revenue	2	1
Amount of (gain) loss reclassified from OCI into cost of revenue	1	1
Cash Flow Hedging [Member] | Foreign Exchange Contract
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI	(2)	(9)
Cash Flow Hedging [Member] | Cross Currency Swaps
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI	45	7
Cash Flow Hedging [Member] | Foreign Currency Denominated Debt
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI	10	7
Interest Expense | Cross Currency Swaps
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI	$ 4	$ 3

Derivative Financial Instrume_4

Derivative Financial Instruments (Balance Sheet Location of Derivative Instruments) (Details) - Derivatives designated as hedging instruments - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Other current assets
Derivatives, Fair Value
Assets	$ 6	$ 0
Other non-current assets
Derivatives, Fair Value
Assets	29	4
Other current liabilities
Derivatives, Fair Value
Liabilities	(9)	0
Other non-current accrued liabilities
Derivatives, Fair Value
Liabilities	$ (2)	$ (24)

Derivative Financial Instrume_5

Derivative Financial Instruments (Details Textual) $ in Millions	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Mar. 11, 2016EUR (€)	Mar. 11, 2016USD ($)
Derivative [Line Items]
Net losses expected to be reclassified in next 12 months	$ 2
Foreign Exchange Contract
Derivative [Line Items]
Notional amount	376	$ 0
Derivatives designated as hedging instruments | Sell USD Buy EUR
Derivative [Line Items]
Notional amount	151
Derivatives designated as hedging instruments | Buy KR Sell EUR
Derivative [Line Items]
Notional amount	117
Derivatives designated as hedging instruments | Sell GBP Buy EUR
Derivative [Line Items]
Notional amount	38
Derivatives designated as hedging instruments | Sell EUR Buy PLN
Derivative [Line Items]
Notional amount	24
Derivatives designated as hedging instruments | Buy USD Sell CDN
Derivative [Line Items]
Notional amount	23
Derivatives designated as hedging instruments | Sell CDN Buy EUR
Derivative [Line Items]
Notional amount	18
Derivatives designated as hedging instruments | Cross Currency Swaps
Derivative [Line Items]
Notional amount	702	714
Long-term debt | Derivatives designated as hedging instruments
Derivative [Line Items]
Net Investment Hedges	544	554
Senior Notes Due 2023, 2.250%
Derivative [Line Items]
Long-term Debt, Fair Value	$ 565	$ 591
Senior Notes Due 2023, 2.250% | Senior Notes
Derivative [Line Items]
Interest on notes due			2.25%	2.25%
Face amount			€ 500,000,000	$ 500

Accrued and Other Current Lia_3

Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Accrued and Other Current Liabilities
Compensation and other employee benefits	$ 177	$ 199
Customer-related liabilities	155	153
Accrued taxes	73	79
Lease liabilities	56	61
Accrued warranty costs	50	36
Other accrued liabilities	108	100
Total accrued and other current liabilities	$ 619	$ 628

Credit Facilities and Debt (Sum

Credit Facilities and Debt (Summary of Debt Outstanding) (Details) - USD ($) $ in Millions		Mar. 31, 2020	Dec. 31, 2019
Credit Facilities and Long-Term Debt :
Debt issuance costs and unamortized discount	[1]	$ (16)	$ (17)
Total debt		2,490	2,316
Less: short-term borrowings and current maturities of long-term debt		459	276
Long-term debt		2,031	2,040
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]	547	557
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		268	276
Other
Credit Facilities and Long-Term Debt :
Senior Notes Due		$ 191	$ 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 $640 million and $629 million as of March 31, 2020 and December 31, 2019, respectively. The fair value of our Senior Notes due 2023 was $565 million and $591 million as of March 31, 2020 and December 31, 2019, respectively. The fair value of our Senior Notes due 2026 was $533 million and $518 million as of March 31, 2020 and December 31, 2019, respectively. The fair value of our Senior Notes due 2046 was $400 million and $431 million as of March 31, 2020 and December 31, 2019, respectively.

Credit Facilities and Debt (Tex

Credit Facilities and Debt (Textuals) (Details)

Apr. 30, 2020USD ($)

Mar. 19, 2020EUR (€)

Sep. 20, 2011USD ($)

Mar. 31, 2020USD ($)

Apr. 25, 2020EUR (€)

Apr. 25, 2020USD ($)

Dec. 31, 2019USD ($)

Nov. 29, 2019EUR (€)

Nov. 29, 2019USD ($)

Jun. 03, 2019EUR (€)

Jun. 03, 2019USD ($)

Mar. 05, 2019USD ($)

Oct. 20, 2016EUR (€)

Oct. 20, 2016USD ($)

Oct. 11, 2016USD ($)

Mar. 11, 2016EUR (€)

Mar. 11, 2016USD ($)

Senior Notes

Debt Instrument

Redemption price percentage

101.00%

Senior Notes Due 2021, 4.875%

Debt Instrument

Fair value of senior notes due

$ 640,000,000

$ 629,000,000

Interest rate

4.875%

Senior Notes Due

[1]

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

565,000,000

591,000,000

Senior Notes Due

[1]

547,000,000

557,000,000

Senior Notes Due 2023, 2.250% | Senior Notes

Debt Instrument

Interest rate

2.25%

2.25%

Face amount

€ 500,000,000

$ 500,000,000

Senior Notes due 2026

Debt Instrument

Fair value of senior notes due

533,000,000

518,000,000

Interest rate

3.25%

Senior Notes Due

[1]

500,000,000

500,000,000

Face amount

$ 500,000,000

Senior Notes due 2046

Debt Instrument

Fair value of senior notes due

400,000,000

431,000,000

Interest rate

4.375%

Senior Notes Due

[1]

$ 400,000,000

400,000,000

Face amount

$ 400,000,000

2015 Five-Year Revolving Credit Facility | Revolving Credit Facility

Debt Instrument

Term of debt

5 years

2019 Five-Year Revolving Credit Facility | Revolving Credit Facility

Debt Instrument

Term of debt

5 years

Debt instrument aggregate principal amount

$ 800,000,000

Permitted increases in Credit Facility borrowing base

200,000,000

Maximum permitted increases in Credit Facility borrowing base

$ 1,000,000,000

US Dollar Commercial Paper Program

Debt Instrument

Face amount

$ 600,000,000

Commercial paper

Debt Instrument

Senior Notes Due

268,000,000

276,000,000

Euro Commercial Paper Program

Debt Instrument

Face amount

€ 500,000,000

$ 547,000,000

Commercial Paper

$ 268,000,000

$ 276,000,000

Weighted-average interest rate

(0.21%)

Uncommitted Short Term Facility

Debt Instrument

Face amount

€ 110,000,000

$ 120,000,000

Proceeds from Issuance of Unsecured Debt | €

€ 100,000,000

Debt Instrument, Interest Rate, Effective Percentage

0.70%

Short-term Debt

$ 120,000,000

$ 0

Uncommitted Short Term Facility, BGL BNP Paribas Bank

Debt Instrument

Face amount

€ 65,000,000

$ 71,000,000

Proceeds from Issuance of Unsecured Debt | €

€ 65,000,000

Debt Instrument, Interest Rate, Effective Percentage

1.25%

Term Loan Facility | Subsequent Event

Debt Instrument

Face amount

$ 50,000,000

Proceeds from Issuance of Unsecured Debt

$ 50,000,000

Term Loan Facility | Subsequent Event | Adjusted LIBOR

Debt Instrument

Debt Instrument, Basis Spread on Variable Rate

1.50%

Term Loan Facility | Subsidiary | Subsequent Event

Debt Instrument

Face amount

€ 100,000,000

$ 109,000,000

[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 $640 million and $629 million as of March 31, 2020 and December 31, 2019, respectively. The fair value of our Senior Notes due 2023 was $565 million and $591 million as of March 31, 2020 and December 31, 2019, respectively. The fair value of our Senior Notes due 2026 was $533 million and $518 million as of March 31, 2020 and December 31, 2019, respectively. The fair value of our Senior Notes due 2046 was $400 million and $431 million as of March 31, 2020 and December 31, 2019, respectively.

Postretirement Benefit Plans (S

Postretirement Benefit Plans (Summary of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net periodic benefit cost:
Amortization of net actuarial loss	$ 1
Net periodic benefit cost	7	$ 1
Domestic defined benefit pension plans
Net periodic benefit cost:
Service cost	1	1
Interest cost	1	1
Expected return on plan assets	(2)	(2)
Amortization of net actuarial loss	1
Net periodic benefit cost	1
International defined benefit pension plans
Net periodic benefit cost:
Service cost	3	3
Interest cost	4	5
Expected return on plan assets	(4)	(9)
Amortization of net actuarial loss	3	2
Net periodic benefit cost	$ 6	$ 1

Postretirement Benefit Plans _2

Postretirement Benefit Plans (Textuals) (Details) - USD ($) $ in Millions	Jan. 27, 2020	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Other postretirement benefit expense		$ 1
Amortization of net actuarial loss		1
Employer contribution to defined benefit plan		12	$ 5
Contributions to meet shortfall		5
Expected rate of return				1.00%	7.25%
Plan assets transferred to insurance company	$ 336
Minimum
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Additional contributions		10
Maximum
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Additional contributions		20
Foreign Plan [Member]
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Amortization of net actuarial loss		$ 3	$ 2

Equity - Summary of Shareholder

Equity - Summary of Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				12 Months Ended
	Mar. 31, 2020	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2020
Dividends declared per share (usd per share)		$ 0.26	$ 0.24	$ 0.24		$ 0.24
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 2,967		$ 2,782		$ 2,782
Cumulative effect of adoption							$ (2)
Sale of business			(2)
Net income	38		79
Other comprehensive income (loss), net	(87)		20
Dividends declared	(48)		(44)
Stock incentive plan activity	3		(2)
Repurchase of common stock	(50)		(25)
Ending balance	2,821		2,808		2,967	$ 2,782
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	2		2		2
Ending balance	2		2		2	2
Capital in Excess of Par Value
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,991		1,950		1,950
Stock incentive plan activity	13		12
Ending balance	2,004		1,962		1,991	1,950
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,866		1,639		1,639
Cumulative effect of adoption							$ (2)
Sale of business			0
Net income	38		79
Dividends declared	(48)		(44)
Ending balance	1,854		1,674		1,866	1,639
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(375)		(336)		(336)
Sale of business			0
Other comprehensive income (loss), net	(86)		20
Ending balance	(461)		(316)		(375)	(336)
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(527)		(487)		(487)
Stock incentive plan activity	(10)		(14)
Repurchase of common stock	(50)		(25)
Ending balance	(587)		(526)		(527)	(487)
Non-Controlling Interest
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	10		14		14
Sale of business	(2)
Other comprehensive income (loss), net	(1)
Ending balance	$ 9		$ 12		$ 10	$ 14

Share-Based Compensation Plan_2

Share-Based Compensation Plans (Textuals) (Details) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation	$ 8	$ 9
Shares Awarded (in shares)	334
Stock-Based Compensation Plans (Textual) [Abstract]
Proceeds from exercise of employee stock options	$ 5	$ 4
Total intrinsic value of options exercised	5.6
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Unamortized compensation expense	$ 9
Weighted average period	2 years 3 months 18 days
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Unamortized compensation expense	$ 29
Weighted average period	2 years 2 months 12 days
Shares Awarded (in shares)	219
Performance Based Shares
Share-based Compensation Arrangement by Share-based Payment Award
Unamortized compensation expense	$ 15
Weighted average period	2 years 4 months 24 days

Share-Based Compensation Plan_3

Share-Based Compensation Plans (Summary of Stock Options Grant) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Summary of the changes in outstanding stock options
Outstanding, beginning of period (in shares)	2,040
Granted (in shares)	334
Exercised (in shares)	(130)
Forfeited (in shares)	(5)
Outstanding, end of period (in shares)	2,239	2,040
Options exercisable, ending of period (in shares)	1,615
Vested and expected, end of period (in shares)	2,146
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)	$ 48.56
Granted (in usd per share)	80.66
Exercised (in usd per share)	41.18
Forfeited (in usd per share)	74.37
Outstanding, end of period (in usd per share)	53.72	$ 48.56
Options exercisable, end of period (in usd per share)	44.45
Vested and expected, end of period (in usd per share)	$ 52.67
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 8 months 12 days	6 years 3 months 18 days
Aggregate intrinsic value, outstanding	$ 37
Options exercisable, end of period	5 years 8 months 12 days
Aggregate intrinsic value, exercisable	$ 36
Vested and expected to vest, end of period	6 years 6 months
Aggregate intrinsic value, vested and expected to vest	$ 36

Share-Based Compensation Plan_4

Share-Based Compensation Plans (Stock Option Fair Value Assumptions) (Details) - Stock Options	3 Months Ended
	Mar. 31, 2020$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility	22.90%
Risk-free interest rate	1.15%
Dividend yield	1.29%
Expected term (in years)	5 years 9 months 18 days
Weighted-average fair value / share (in usd per share)	$ 16.03

Share-Based Compensation Plan_5

Share-Based Compensation Plans (Summary of Restricted Stock Unit Grants) (Details) - Restricted Stock [Member] shares in Thousands	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Summary of restricted stock activity
Outstanding, beginning of period (in shares) | shares	512
Granted (in shares) | shares	219
Vested (in shares) | shares	(200)
Forfeited (in shares) | shares	(9)
Outstanding, end of period (in shares) | shares	522
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	$ 68.95
Granted (in usd per share) | $ / shares	80.66
Vested (in usd per share) | $ / shares	64.84
Forfeited (in usd per share) | $ / shares	71.20
Outstanding, end of period (in usd per share) | $ / shares	$ 75.34

Share-Based Compensation Plan_6

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	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Summary of performance share activity
Outstanding, beginning of period (in shares) | shares	225
Granted (in shares) | shares	67
Vested (in shares) | shares	(89)
Forfeited (in shares) | shares	(1)
Outstanding, end of period (in shares) | shares	202
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	$ 64.51
Granted (in usd per share) | $ / shares	80.66
Vested (in usd per share) | $ / shares	49.15
Forfeited (in usd per share) | $ / shares	74.17
Outstanding, end of period (in usd per share) | $ / shares	$ 76.60

Share-Based Compensation Plan_7

Share-Based Compensation Plans (Summary of Performance-Based Share Grants) (Details) - Total Shareholder Return Performance-Based Shares - Performance Based Shares shares in Thousands	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Summary of performance share activity
Outstanding, beginning of period (in shares) | shares	225
Granted (in shares) | shares	67
Adjustment for Condition Achieved (in shares) | shares	35
Vested (in shares) | shares	(124)
Forfeited (in shares) | shares	(1)
Outstanding, end of period (in shares) | shares	202
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	$ 75.80
Granted (in usd per share) | $ / shares	105.66
Adjustment for Condition Achieved (in usd per share) | $ / shares	49.15
Vested (in usd per share) | $ / shares	49.15
Forfeited (in usd per share) | $ / shares	74.17
Outstanding, end of period (in usd per share) | $ / shares	$ 97.97

Share-Based Compensation Plan_8

Share-Based Compensation Plans (TSR Performance-Based Shares Fair Value Assumptions) (Details) - Total Shareholder Return Performance-Based Shares - Performance Based Shares shares in Thousands	3 Months Ended
	Mar. 31, 2020$ / 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	(1)
Volatility	22.60%
Risk-free interest rate	1.08%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares	$ 74.17

Capital Stock (Textuals) (Detai

Capital Stock (Textuals) (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Aug. 24, 2015
Equity, Class of Treasury Stock [Line Items]
Shares repurchased (less than $1 million)	$ 50	$ 25
Share Repurchase Programs
Equity, Class of Treasury Stock [Line Items]
Shares repurchased (in shares - less than 0.1 million)	0.8	0.5
Shares repurchased (less than $1 million)	$ 60	$ 39
2015 Stock Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount			$ 500
Shares repurchased (in shares - less than 0.1 million)	0.7	0.3
Shares repurchased (less than $1 million)	$ 50	$ 25
Remaining authorized amount of repurchase	$ 288
Settlement of Employee Tax Withholding Obligations
Equity, Class of Treasury Stock [Line Items]
Shares repurchased (in shares - less than 0.1 million)	0.1	0.2
Shares repurchased (less than $1 million)	$ 10	$ 14

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ (375)
Foreign currency translation adjustment	(78)	$ 29
Ending balance	(461)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(103)	(121)
Foreign currency translation adjustment	(77)	29
Tax on foreign currency translation adjustment	(13)	(4)
Ending balance	(193)	(96)
Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(269)	(214)
Income tax impact on amortization of postretirement benefit plan items	(1)	(1)
Ending balance	(266)	(213)
Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(3)	(1)
Unrealized loss on derivative hedge agreements	(2)	(9)
Income tax benefit on unrealized loss on derivative hedge agreements		1
Ending balance	(2)	(7)
Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(375)	(336)
Foreign currency translation adjustment	(77)	29
Tax on foreign currency translation adjustment	(13)	(4)
Income tax impact on amortization of postretirement benefit plan items	(1)	(1)
Unrealized loss on derivative hedge agreements	(2)	(9)
Income tax benefit on unrealized loss on derivative hedge agreements		1
Ending balance	(461)	(316)
Other non-operating income | Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of prior service cost and net actuarial loss on postretirement benefit plans into other non-operating income (expense), net	4	2
Other non-operating income | Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of prior service cost and net actuarial loss on postretirement benefit plans into other non-operating income (expense), net	4	2
Revenue | Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements	2	1
Revenue | Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements	2	1
Cost of Revenue | Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements	1	1
Cost of Revenue | Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements	$ 1	$ 1

Commitments and Contingencies_2

Commitments and Contingencies (Summary of Warranties) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Warranties
Warranty accrual – January 1	$ 41	$ 60
Net charges for product warranties in the period	22	5
Settlement of warranty claims	(7)	(13)
Foreign currency and other	(1)	0
Warranty accrual - March 31	$ 55	$ 52

Commitments and Contingencies_3

Commitments and Contingencies (Details Textual) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Loss Contingency Accrual	$ 3	$ 5
Guarantee amounts	330	340
Estimated environmental matters	$ 3	$ 3

Segment Information (Summary of

Segment Information (Summary of Operations by Segment) (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Financial information for each reportable segment
Revenues		$ 1,123	$ 1,237
Operating income		61	109
Interest Expense		16	18
Other Nonoperating Income (Expense)		(3)	2
Gain from sale of business		0	1
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest		42	94
Depreciation and amortization		64	64
Capital expenditures		51	69
Water Infrastructure
Financial information for each reportable segment
Revenues		438	482
Operating income		39	51
Depreciation and amortization		15	15
Capital expenditures		10	30
Applied Water
Financial information for each reportable segment
Revenues		338	379
Operating income		47	56
Depreciation and amortization		6	6
Capital expenditures		9	6
Measurement & Control Solutions
Financial information for each reportable segment
Revenues		347	376
Operating income		(12)	16
Depreciation and amortization		36	36
Capital expenditures		27	24
Regional Selling Locations
Financial information for each reportable segment
Depreciation and amortization	[1]	4	4
Capital expenditures	[2]	4	4
Corporate and other
Financial information for each reportable segment
Operating income		(13)	(14)
Depreciation and amortization		3	3
Capital expenditures		$ 1	$ 5
[1]	Depreciation and amortization expense incurred by the Regional selling locations was included in an overall allocation of Regional selling location costs to the segments; however, a certain portion of that expense was not specifically identified to a segment. That expense is captured in this Regional selling location line.
[2]	Represents capital expenditures incurred by the Regional selling locations not allocated to the segments.

Segment Information (Textuals)

Segment Information (Textuals) (Details)	3 Months Ended
	Mar. 31, 2020Segment
Segment Information (Textual) [Abstract]
Number of reportable segments	3