Revenue

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Disaggregation of Revenue

The following table illustrates the sources of revenue:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2022		2021		2022		2021
Revenue from contracts with customers	$	1,319	$	1,214	$	3,852	$	3,726
Lease Revenue	61		51		164		146
Total	$	1,380	$	1,265	$	4,016	$	3,872

The following table reflects revenue from contracts with customers by application.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2022		2021		2022		2021
Water Infrastructure
Transport	$	410	$	390	$	1,235	$	1,173
Treatment	103		106		297		306
Applied Water
Commercial Building Services	171		152		479		454
Residential Building Services	82		71		233		211
Industrial Water	205		177		600		542
Measurement & Control Solutions
Water	278		253		822		824
Energy	70		65		186		216
Total	$	1,319	$	1,214	$	3,852	$	3,726

The following table reflects revenue from contracts with customers by geographical region.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2022		2021		2022		2021
Water Infrastructure
United States	$	155	$	137	$	467	$	402
Western Europe	172		175		548		538
Emerging Markets (a)	135		137		356		391
Other	51		47		161		148
Applied Water
United States	235		197		675		593
Western Europe	90		90		285		281
Emerging Markets (a)	100		81		258		240
Other	33		32		94		93
Measurement & Control Solutions
United States	221		189		614		625
Western Europe	55		59		183		202
Emerging Markets (a)	48		46		142		141
Other	24		24		69		72
Total	$	1,319	$	1,214	$	3,852	$	3,726

(a)Emerging Markets includes results from the following regions: Eastern Europe, the Middle East and Africa, Latin America and Asia Pacific (excluding Japan, Australia and New Zealand, which are presented in "Other")

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, 2021	$	117	$	166
Additions, net	99		109
Revenue recognized from opening balance	—		(106)
Billings transferred to accounts receivable	(85)		—
Foreign currency and other	(1)		(2)
Balance at September 30, 2021	$	130	$	167
Balance at January 1, 2022	$	125	$	164
Additions, net	91		110
Revenue recognized from opening balance	—		(94)
Billings transferred to accounts receivable	(71)		—
Foreign currency and other	(8)		(12)
Balance at September 30, 2022	$	137	$	168

(a)Excludes receivable balances, which are disclosed on the Condensed Consolidated Balance Sheets

Performance obligations

Delivery schedules vary from customer to customer based upon their requirements. Typically, large projects require longer lead production cycles and delays can occur from time to time. As of September 30, 2022, the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied for contracts with performance obligations, amount to $567 million. We expect to recognize the majority of revenue upon the completion of satisfying these performance obligations in the following three years. The Company elects to apply the practical expedient to exclude from this disclosure revenue related to performance obligations that are part of a contract whose original expected duration is less than one year.