XML 24 R12.htm IDEA: XBRL DOCUMENT v3.7.0.1
Earnings Per Share
6 Months Ended
Jun. 30, 2017
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share
The following is a reconciliation of the shares used in calculating basic and diluted net earnings per share.
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2017
 
2016
 
2017
 
2016
Net income attributable to Xylem (in millions)
$
99

 
$
71

 
$
155

 
$
137

Shares (in thousands):
 
 
 
 
 
 
 
Weighted average common shares outstanding
179,571

 
179,020

 
179,557

 
178,790

Add: Participating securities (a)
28

 
46

 
31

 
38

Weighted average common shares outstanding — Basic
179,599

 
179,066

 
179,588

 
178,828

Plus incremental shares from assumed conversions: (b)
 
 
 
 
 
 
 
Dilutive effect of stock options
640

 
459

 
600

 
396

Dilutive effect of restricted stock units and performance share units
362

 
365

 
438

 
377

Weighted average common shares outstanding — Diluted
180,601

 
179,890

 
180,626

 
179,601

Basic earnings per share
$
0.55

 
$
0.39

 
$
0.87

 
$
0.77

Diluted earnings per share
$
0.55

 
$
0.39

 
$
0.86

 
$
0.76

(a)
Restricted stock unit awards containing rights to non-forfeitable dividends that participate in undistributed earnings with common shareholders are considered participating securities for purposes of computing earnings per share.
(b)
Incremental shares from stock options, restricted stock units and performance share units are computed by the treasury stock method. The weighted average shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or were otherwise excluded under the treasury stock method. The treasury stock method calculates dilution assuming the exercise of all in-the-money options and vesting of restricted stock units and performance share units, reduced by the repurchase of shares with the proceeds from the assumed exercises and unrecognized compensation expense for outstanding awards. Performance share units will be included in the treasury stock calculation of diluted earnings per share upon achievement of underlying performance or market conditions at the end of the reporting period. See Note 14, "Share-Based Compensation Plans" to the condensed consolidated financial statements for further detail on the performance share units.
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
(in thousands)
2017
 
2016
 
2017
 
2016
Stock options
1,854

 
2,068

 
1,813

 
2,161

Restricted stock units
464

 
582

 
427

 
591

Performance share units
530

 
409

 
467

 
334