Segment and Geographic Data

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment and Geographic Data

Segment and Geographic Data

Our business has two reportable segments: Water Infrastructure and Applied Water. The Water Infrastructure segment, focuses on the transportation, treatment and testing of water, offering a range of products including water and wastewater pumps, treatment and testing equipment, and controls and systems. The Applied Water segment, encompasses the uses of water and focuses on the residential, commercial, industrial and agricultural markets offering a wide range of products, including pumps, valves and heat exchangers. Our Regional selling locations consist primarily of selling and marketing organizations and related support that offer products and services across both of our reportable segments. Corporate and other consists of corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs, as well as charges related to certain matters, such as environmental matters that are managed at a corporate level and are not included in the business segments in evaluating performance or allocating resources.

The accounting policies of each segment are the same as those described in the summary of significant accounting policies (see Note 1). The following tables contain financial information for each reportable segment:

	Year Ended December 31,
(in millions)	2015			2014			2013
Revenue:
Water Infrastructure	$	2,231		$	2,442		$	2,384
Applied Water	1,422			1,474			1,453
Total	$	3,653		$	3,916		$	3,837
Operating income:
Water Infrastructure	$	303		$	321		$	263
Applied Water	190			193			175
Corporate and other	(44		)	(51		)	(75		)
Total operating income	449			463			363
Interest expense	55			54			55
Other non-operating income (expense)	—			1			(10		)
Gain from sale of businesses	9			11			—
Income before taxes	$	403		$	421		$	298
Depreciation and amortization:
Water Infrastructure	$	88		$	100		$	104
Applied Water	26			25			26
Regional selling locations (a)	12			12			13
Corporate and other	7			5			7
Total	$	133		$	142		$	150
Capital expenditures:
Water Infrastructure	$	67		$	73		$	67
Applied Water	22			28			31
Regional selling locations (b)	23			10			12
Corporate and other	5			8			16
Total	$	117		$	119		$	126

(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 is the expense captured in this Regional selling location line.

(b) Represents capital expenditures incurred by the Regional selling locations not allocated to the segments.

The following table illustrates revenue by product category, net of intercompany revenue.

	Year Ended December 31,
(in millions)	2015		2014		2013
Pumps, accessories, parts and service	$	2,917	$	3,094	$	3,076
Other (a)	736		822		761
Total	$	3,653	$	3,916	$	3,837

(a) Other includes treatment equipment, analytical instrumentation, heat exchangers, valves and controls.

The following table contains the total assets for each reportable segment as of December 31, 2015, 2014 and 2013.

	Total Assets
(in millions)	2015		2014		2013 (c)
Water Infrastructure	$	2,024	$	2,128	$	2,224
Applied Water	1,054		1,114		1,122
Regional selling locations (a)	905		961		983
Corporate and other (b)	674		630		528
Total	$	4,657	$	4,833	$	4,857

(a) The Regional selling locations have assets that consist primarily of cash, accounts receivable and inventory which are not allocated to the segments.

(b) Corporate and other consists of items pertaining to our corporate headquarters function, which principally consist of cash, deferred tax assets, pension assets and certain, plant and equipment.

(c) In 2013, debt issuance costs of $6 million were reclassified to long-term debt from other non-current assets and deferred tax assets of $33 million were reclassified to deferred tax liabilities within the Consolidated Balance Sheet. See Note 2, “Recently Issued Accounting Pronouncements,” of the consolidated financial statements.

Geographical Information

Revenue is attributed to countries based upon the location of the customer. Property, Plant & Equipment is attributed to countries based upon the location of the assets.

	Revenue
	Year Ended December 31,
(in millions)	2015		2014		2013
United States	$	1,490	$	1,477	$	1,434
Europe	1,179		1,379		1,387
Asia Pacific	482		478		467
Other	502		582		549
Total	$	3,653	$	3,916	$	3,837

	Property, Plant & Equipment
	December 31,
(in millions)	2015		2014		2013
United States	$	168	$	180	$	186
Europe	189		206		225
Asia Pacific	56		53		45
Other	26		22		32
Total	$	439	$	461	$	488