QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange of which registered | ||||||||||||
☑ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
ITEM | PAGE | ||||||||||
PART I – Financial Information | |||||||||||
Item 1 | - | ||||||||||
Item 2 | - | ||||||||||
Item 3 | - | ||||||||||
Item 4 | - | ||||||||||
PART II – Other Information | |||||||||||
Item 1 | - | ||||||||||
Item 1A | - | ||||||||||
Item 2 | - | ||||||||||
Item 3 | - | ||||||||||
Item 4 | - | ||||||||||
Item 5 | - | ||||||||||
Item 6 | - | ||||||||||
Three Months | Six Months | ||||||||||||||||||||||
For the periods ended June 30, | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Revenue from products | $ | $ | $ | $ | |||||||||||||||||||
Revenue from services | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Cost of revenue from products | |||||||||||||||||||||||
Cost of revenue from services | |||||||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Research and development expenses | |||||||||||||||||||||||
Restructuring and asset impairment charges | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Other non-operating income, net | |||||||||||||||||||||||
Gain/(Loss) on sale of businesses | ( | ||||||||||||||||||||||
Income before taxes | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average number of shares: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Three Months | Six Months | ||||||||||||||||||||||
For the periods ended June 30, | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss), before tax: | |||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | ( | ||||||||||||||||||||
Net change in derivative hedge agreements: | |||||||||||||||||||||||
Unrealized gain (loss) | ( | ( | |||||||||||||||||||||
Amount of (gain) loss reclassified into net income | ( | ( | |||||||||||||||||||||
Net change in post-retirement benefit plans: | |||||||||||||||||||||||
Amortization of prior service credit | ( | ( | |||||||||||||||||||||
Amortization of actuarial (gain) loss into net income | ( | ||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||
Other comprehensive income (loss), before tax | ( | ( | ( | ||||||||||||||||||||
Income tax (benefit) expense related to items of other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ | |||||||||||||||||||
June 30, 2024 | December 31, 2023 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Receivables, less allowances for discounts, returns and credit losses of $ | |||||||||||
Inventories | |||||||||||
Prepaid and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net | |||||||||||
Other non-current assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued and other current liabilities | |||||||||||
Short-term borrowings and current maturities of long-term debt | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Accrued post-retirement benefits | |||||||||||
Deferred income tax liabilities | |||||||||||
Other non-current accrued liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 18) | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock – par value $ | |||||||||||
Authorized | |||||||||||
Capital in excess of par value | |||||||||||
Retained earnings | |||||||||||
Treasury stock – at cost | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Non-controlling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
For the six months ended June 30, | 2024 | 2023 | |||||||||
Operating Activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization | |||||||||||
Share-based compensation | |||||||||||
Restructuring and asset impairment charges | |||||||||||
Loss from sale of business | |||||||||||
Other, net | ( | ( | |||||||||
Payments for restructuring | ( | ( | |||||||||
Changes in assets and liabilities (net of acquisitions): | |||||||||||
Changes in receivables | ( | ( | |||||||||
Changes in inventories | ( | ( | |||||||||
Changes in accounts payable | ( | ||||||||||
Changes in accrued and deferred taxes | ( | ( | |||||||||
Other, net | ( | ( | |||||||||
Net Cash – Operating activities | |||||||||||
Investing Activities | |||||||||||
Capital expenditures | ( | ( | |||||||||
Acquisitions of businesses, net of cash acquired | ( | ( | |||||||||
Proceeds from sale of business | |||||||||||
Proceeds from the sale of property, plant and equipment | |||||||||||
Cash received from investments | |||||||||||
Cash paid for investments | ( | ||||||||||
Cash paid for equity investments | ( | ( | |||||||||
Cash received from interest rate swaps | |||||||||||
Cash received from cross-currency swaps | |||||||||||
Other, net | |||||||||||
Net Cash – Investing activities | ( | ( | |||||||||
Financing Activities | |||||||||||
Short-term debt issued, net | |||||||||||
Short-term debt repaid | ( | ||||||||||
Long-term debt issued, net | |||||||||||
Long-term debt repaid | ( | ( | |||||||||
Repurchase of common stock | ( | ( | |||||||||
Proceeds from exercise of employee stock options | |||||||||||
Dividends paid | ( | ( | |||||||||
Other, net | ( | ( | |||||||||
Net Cash – Financing activities | ( | ||||||||||
Effect of exchange rate changes on cash | ( | ||||||||||
Net change in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents at beginning of year | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes (net of refunds received) | $ | $ |
(in millions) | Fair Value of Purchase Consideration | ||||
Xylem Common Stock issued to Evoqua stockholders ( | $ | ||||
Estimated replacement equity awards | |||||
Payment of certain Evoqua indebtedness | |||||
Total | $ |
(in millions) | Fair Value | ||||
Cash and cash equivalents | $ | ||||
Receivables(a) | |||||
Inventories | |||||
Prepaid and other current assets | |||||
Assets held for sale | |||||
Property, plant and equipment, net | |||||
Goodwill | |||||
Other intangible assets, net | |||||
Other non-current assets | |||||
Non-current assets held for sale | |||||
Accounts payable | ( | ||||
Accrued and other current liabilities | ( | ||||
Short-term borrowings and current maturities of long-term debt | ( | ||||
Liabilities held for sale | ( | ||||
Long-term debt | ( | ||||
Other non-current accrued liabilities | ( | ||||
Deferred income tax liabilities | ( | ||||
Non-current liabilities held for sale | ( | ||||
Total | $ |
(in millions) | Useful Life (in years) | Useful Life Weighted Average (in years) | Fair Value (in millions) | ||||||||
Trademarks | $ | ||||||||||
Proprietary technology and patents | |||||||||||
Customer and distributor relationships | |||||||||||
Backlog | |||||||||||
Permits | |||||||||||
Software | |||||||||||
Total | $ |
(Unaudited) Three Months Ended June 30, | (Unaudited) Six Months Ended June 30, | ||||||||||
(in millions) | 2023 | 2023 | |||||||||
Revenue | $ | $ | |||||||||
Net income | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Revenue from contracts with customers | $ | $ | $ | $ | |||||||||||||||||||
Lease Revenue | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Water Infrastructure | |||||||||||||||||||||||
Transport | $ | $ | $ | $ | |||||||||||||||||||
Treatment | |||||||||||||||||||||||
Applied Water | |||||||||||||||||||||||
Building Solutions | |||||||||||||||||||||||
Industrial Water | |||||||||||||||||||||||
Measurement and Control Solutions | |||||||||||||||||||||||
Smart Metering and Other | |||||||||||||||||||||||
Analytics | |||||||||||||||||||||||
Water Solutions and Services | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Water Infrastructure | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Western Europe | |||||||||||||||||||||||
Emerging Markets (a) | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Applied Water | |||||||||||||||||||||||
United States | |||||||||||||||||||||||
Western Europe | |||||||||||||||||||||||
Emerging Markets (a) | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Measurement and Control Solutions | |||||||||||||||||||||||
United States | |||||||||||||||||||||||
Western Europe | |||||||||||||||||||||||
Emerging Markets (a) | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Water Solutions and Services | |||||||||||||||||||||||
United States | |||||||||||||||||||||||
Western Europe | |||||||||||||||||||||||
Emerging Markets (a) | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
(in millions) | Contract Assets (a) | Contract Liabilities | ||||||
Balance at January 1, 2023 | $ | $ | ||||||
Opening balance from the acquisition of Evoqua | ||||||||
Additions, net | ||||||||
Revenue recognized from opening balance | — | ( | ||||||
Billings transferred to accounts receivable | ( | — | ||||||
Foreign currency and other | ( | |||||||
Balance at June 30, 2023 | $ | $ | ||||||
Balance at January 1, 2024 | $ | $ | ||||||
Additions, net | ||||||||
Revenue recognized from opening balance | — | ( | ||||||
Billings transferred to accounts receivable | ( | — | ||||||
Foreign currency and other | ( | ( | ||||||
Balance at June 30, 2024 | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
By component: | |||||||||||||||||||||||
Severance and other charges | $ | $ | $ | $ | |||||||||||||||||||
Asset impairment | |||||||||||||||||||||||
Reversal of restructuring accruals | ( | ( | ( | ||||||||||||||||||||
Total restructuring costs | $ | $ | $ | $ | |||||||||||||||||||
Asset impairment charges | |||||||||||||||||||||||
Total restructuring and asset impairment charges | $ | $ | $ | $ | |||||||||||||||||||
By segment: | |||||||||||||||||||||||
Water Infrastructure | $ | $ | $ | $ | |||||||||||||||||||
Applied Water | |||||||||||||||||||||||
Measurement and Control Solutions | |||||||||||||||||||||||
Water Solutions and Services | |||||||||||||||||||||||
Corporate and other |
(in millions) | 2024 | 2023 | ||||||||||||
Restructuring accruals - January 1 | $ | $ | ||||||||||||
Restructuring costs, net | ||||||||||||||
Cash payments | ( | ( | ||||||||||||
Asset impairment | ( | |||||||||||||
Stock based compensation expense included within AOCL | ( | ( | ||||||||||||
Foreign currency and other | ( | ( | ||||||||||||
Restructuring accruals - June 30 | $ | $ | ||||||||||||
By segment: | ||||||||||||||
Water Infrastructure | $ | $ | ||||||||||||
Applied Water | ||||||||||||||
Measurement and Control Solutions | ||||||||||||||
Water Solutions and Services | ||||||||||||||
Regional selling locations (a) | ||||||||||||||
Corporate and other |
(in millions) | Water Infrastructure | Applied Water | Measurement and Control Solutions | Water Solutions and Services | Corporate | Total | ||||||||||||||||||||||||||||||||
Actions Commenced in 2024: | ||||||||||||||||||||||||||||||||||||||
Total expected costs | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Costs incurred during Q1 2024 | ||||||||||||||||||||||||||||||||||||||
Costs incurred during Q2 2024 | ||||||||||||||||||||||||||||||||||||||
Total expected costs remaining | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Actions Commenced in 2023: | ||||||||||||||||||||||||||||||||||||||
Total expected costs | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Costs incurred in 2023 | ||||||||||||||||||||||||||||||||||||||
Costs incurred during Q1 2024 | ||||||||||||||||||||||||||||||||||||||
Costs incurred during Q2 2024 | ||||||||||||||||||||||||||||||||||||||
Total expected costs remaining | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net income (in millions) | $ | $ | $ | $ | |||||||||||||||||||
Shares (in thousands): | |||||||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Add: Participating securities (a) | |||||||||||||||||||||||
Weighted average common shares outstanding — Basic | |||||||||||||||||||||||
Plus incremental shares from assumed conversions: (b) | |||||||||||||||||||||||
Dilutive effect of stock options | |||||||||||||||||||||||
Dilutive effect of restricted stock units and performance share units | |||||||||||||||||||||||
Weighted average common shares outstanding — Diluted | |||||||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Stock options | |||||||||||||||||||||||
Restricted stock units | |||||||||||||||||||||||
Performance share units |
(in millions) | June 30, 2024 | December 31, 2023 | |||||||||
Finished goods | $ | $ | |||||||||
Work in process | |||||||||||
Raw materials | |||||||||||
Total inventories | $ | $ |
(in millions) | Water Infrastructure | Applied Water | Measurement and Control Solutions | Water Solutions and Services | Total | ||||||||||||||||||||||||
Balance as of December 31, 2023 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Reallocation | ( | ( | |||||||||||||||||||||||||||
Balance as of January 1, 2024 | |||||||||||||||||||||||||||||
Activity in 2024 | |||||||||||||||||||||||||||||
Foreign currency and other | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Balance as of June 30, 2024 | $ | $ | $ | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
(in millions) | Carrying Amount | Accumulated Amortization | Net Intangibles | Carrying Amount | Accumulated Amortization | Net Intangibles | |||||||||||||||||||||||||||||
Customer and distributor relationships | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Proprietary technology and patents | ( | ( | |||||||||||||||||||||||||||||||||
Trademarks | ( | ( | |||||||||||||||||||||||||||||||||
Software | ( | ( | |||||||||||||||||||||||||||||||||
Other | ( | ( | |||||||||||||||||||||||||||||||||
Indefinite-lived intangibles | |||||||||||||||||||||||||||||||||||
Other Intangibles | $ | $ | ( | $ | $ | $ | ( | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||||
Amount of (loss) gain recognized in OCL | $ | $ | ( | $ | ( | $ | |||||||||||||||||
Amount of (gain) loss reclassified from OCL into Revenue | ( | ||||||||||||||||||||||
Amount of (gain) loss reclassified from OCL into Cost of revenue | ( | ||||||||||||||||||||||
Net Investment Hedges | |||||||||||||||||||||||
Cross-Currency Swaps | |||||||||||||||||||||||
Amount of gain (loss) recognized in OCL | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Amount of income recognized in Interest expense | |||||||||||||||||||||||
(in millions) | June 30, 2024 | December 31, 2023 | |||||||||
Derivatives designated as hedging instruments | |||||||||||
Assets | |||||||||||
Cash Flow Hedges | |||||||||||
Prepaid and other current assets | $ | $ | |||||||||
Net Investment Hedges | |||||||||||
Other non-current assets | $ | $ | |||||||||
Liabilities | |||||||||||
Cash Flow Hedges | |||||||||||
Accrued and other current liabilities | $ | ( | $ | ||||||||
Net Investment Hedges | |||||||||||
Other non-current accrued liabilities | $ | ( | $ | ( | |||||||
(in millions) | June 30, 2024 | December 31, 2023 | |||||||||
Compensation and other employee-benefits | $ | $ | |||||||||
Customer-related liabilities | |||||||||||
Accrued taxes | |||||||||||
Lease liabilities | |||||||||||
Accrued warranty costs | |||||||||||
Other accrued liabilities | |||||||||||
Total accrued and other current liabilities | $ | $ |
(in millions) | 2024 | ||||
Confirmed obligations outstanding – January 1 | $ | ||||
Invoices confirmed | $ | ||||
Confirmed invoices paid | $ | ( | |||
Foreign currency and other | $ | ( | |||
Confirmed obligations outstanding – June 30 | $ |
(in millions) | June 30, 2024 | December 31, 2023 | |||||||||
$ | $ | ||||||||||
Equipment Financing due 2024 to 2032 | |||||||||||
Term loan | |||||||||||
Debt issuance costs and unamortized discount (b) | ( | ( | |||||||||
Total debt | |||||||||||
Less: short-term borrowings and current maturities of long-term debt | |||||||||||
Total long-term debt | $ | $ |
June 30, 2024 | |||||||||||
(in millions) | Gross | Net | |||||||||
Property, plant, and equipment, net | $ | $ | |||||||||
Receivables, net | |||||||||||
Prepaid and other current assets | |||||||||||
Other non-current assets | |||||||||||
$ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Domestic defined benefit pension plans: | |||||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of net actuarial loss | — | — | |||||||||||||||||||||
Net periodic benefit cost | $ | $ | — | $ | $ | ||||||||||||||||||
International defined benefit pension plans: | |||||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of actuarial (gain) loss | — | ( | |||||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ | |||||||||||||||||||
Total net periodic benefit cost | $ | $ | $ | $ |
(in millions) | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non-Controlling Interest | Total | ||||||||||||||||||||||||||||||||||
Balance at January 1, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income, net | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Other activity | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Stock incentive plan activity | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other activity | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Stock incentive plan activity | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non-Controlling Interest | Total | |||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other activity | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Stock incentive plan activity | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income, net | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Issuance of common stock | 1 | 6,120 | — | — | — | — | 6,121 | ||||||||||||||||||||||||||||||||||
Issuance of replacement equity awards | — | 160 | — | — | — | — | 160 | ||||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Stock incentive plan activity | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Share units (in thousands) | Weighted Average Exercise Price / Share | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in millions) | ||||||||||||||||||||
Outstanding at January 1, 2024 | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Forfeited and expired | ( | ||||||||||||||||||||||
Outstanding at June 30, 2024 | $ | $ | |||||||||||||||||||||
Options exercisable at June 30, 2024 | $ | $ | |||||||||||||||||||||
Vested and expected to vest as of June 30, 2024 | $ | $ |
Volatility | % | |||||||
Risk-free interest rate | % | |||||||
Dividend yield | % | |||||||
Expected term (in years) | ||||||||
Weighted-average fair value / share | $ |
Share units (in thousands) | Weighted Average Grant Date Fair Value / Share | ||||||||||
Outstanding at January 1, 2024 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Outstanding at June 30, 2024 | $ |
Share units (in thousands) | Weighted Average Grant Date Fair Value / Share | ||||||||||
Outstanding at January 1, 2024 | $ | ||||||||||
Granted | |||||||||||
Adjustment for Performance Condition Achieved (a) | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Outstanding at June 30, 2024 | $ |
Share units (in thousands) | Weighted Average Grant Date Fair Value / Share | ||||||||||
Outstanding at January 1, 2024 | $ | ||||||||||
Granted | |||||||||||
Adjustment for Market Condition Achieved (a) | ( | ||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Outstanding at June 30, 2024 | $ |
Volatility | % | |||||||
Risk-free interest rate | % | |||||||
Share units (in thousands) | Weighted Average Grant Date Fair Value / Share | ||||||||||
Outstanding at January 1, 2024 | $ | ||||||||||
Granted | |||||||||||
Forfeited | ( | ||||||||||
Outstanding at June 30, 2024 | $ |
(in millions) | Foreign Currency Translation | Post-retirement Benefit Plans | Derivative Instruments | Total | |||||||||||||||||||
Balance at January 1, 2024 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Foreign currency translation adjustment | ( | — | — | ( | |||||||||||||||||||
Tax on foreign currency translation adjustment | ( | — | — | ( | |||||||||||||||||||
Income tax impact on amortization of post-retirement benefit plan items | — | ( | — | ( | |||||||||||||||||||
Foreign currency translation adjustment for post-retirement benefit plans | — | — | |||||||||||||||||||||
Unrealized loss on derivative hedge agreements | — | — | ( | ( | |||||||||||||||||||
Reclassification of unrealized loss on foreign exchange agreements into cost of revenue | — | — | |||||||||||||||||||||
Balance at March 31, 2024 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Foreign currency translation adjustment | — | — | |||||||||||||||||||||
Tax on foreign currency translation adjustment | ( | — | — | ( | |||||||||||||||||||
Income tax impact on amortization of post-retirement benefit plan items | — | — | |||||||||||||||||||||
Reclassification of unrealized gain on foreign exchange agreements into cost of revenue | — | — | ( | ( | |||||||||||||||||||
Balance at June 30, 2024 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
(in millions) | Foreign Currency Translation | Post-retirement Benefit Plans | Derivative Instruments | Total | |||||||||||||||||||
Balance at January 1, 2023 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Foreign currency translation adjustment | — | — | |||||||||||||||||||||
Tax on foreign currency translation adjustment | — | — | |||||||||||||||||||||
Amortization of actuarial gain on post-retirement benefit plans into other non-operating income, net | — | ( | — | ( | |||||||||||||||||||
Income tax impact on amortization of post-retirement benefit plan items | — | — | |||||||||||||||||||||
Unrealized gain on derivative hedge agreements | — | — | |||||||||||||||||||||
Income tax benefit on unrealized gain on derivative hedge agreements | — | — | ( | ( | |||||||||||||||||||
Reclassification of unrealized loss on foreign exchange agreements into revenue | — | — | |||||||||||||||||||||
Reclassification of unrealized loss on foreign exchange agreements into cost of revenue | — | — | |||||||||||||||||||||
Balance at March 31, 2023 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Foreign currency translation adjustment | ( | — | — | ( | |||||||||||||||||||
Tax on foreign currency translation adjustment | — | — | |||||||||||||||||||||
Amortization of prior service cost and net actuarial gain on post-retirement benefit plans into other non-operating income, net | — | ( | — | ( | |||||||||||||||||||
Foreign currency translation adjustment for post-retirement benefit plans | — | ( | — | ( | |||||||||||||||||||
Unrealized loss on derivative hedge agreements | — | — | ( | ( | |||||||||||||||||||
Reclassification of unrealized gain on foreign exchange agreements into revenue | — | — | ( | ( | |||||||||||||||||||
Balance at June 30, 2023 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
(in millions) | 2024 | 2023 | |||||||||
Warranty accrual – January 1 | $ | $ | |||||||||
Net charges for product warranties in the period | |||||||||||
Net Evoqua additions from acquisition | |||||||||||
Settlement of warranty claims | ( | ( | |||||||||
Warranty accrual – June 30 | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Water Infrastructure | $ | $ | $ | $ | |||||||||||||||||||
Applied Water | |||||||||||||||||||||||
Measurement and Control Solutions | |||||||||||||||||||||||
Water Solutions and Services | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Operating Income (Loss): | |||||||||||||||||||||||
Water Infrastructure | $ | $ | $ | $ | |||||||||||||||||||
Applied Water | |||||||||||||||||||||||
Measurement and Control Solutions | |||||||||||||||||||||||
Water Solutions and Services | |||||||||||||||||||||||
Corporate and other | ( | ( | ( | ( | |||||||||||||||||||
Total operating income | $ | $ | $ | $ | |||||||||||||||||||
Interest expense | $ | $ | $ | $ | |||||||||||||||||||
Other non-operating income, net | |||||||||||||||||||||||
Gain/(Loss) on sale of business | ( | ||||||||||||||||||||||
Income before taxes | $ | $ | $ | $ | |||||||||||||||||||
Depreciation and Amortization: | |||||||||||||||||||||||
Water Infrastructure | $ | $ | $ | $ | |||||||||||||||||||
Applied Water | |||||||||||||||||||||||
Measurement and Control Solutions | |||||||||||||||||||||||
Water Solutions and Services | |||||||||||||||||||||||
Corporate and other | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Capital Expenditures: | |||||||||||||||||||||||
Water Infrastructure | $ | $ | $ | $ | |||||||||||||||||||
Applied Water | |||||||||||||||||||||||
Measurement and Control Solutions | |||||||||||||||||||||||
Water Solutions and Services | |||||||||||||||||||||||
Regional selling locations (a) | |||||||||||||||||||||||
Corporate and other | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except for per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||
Net income & Earnings per share | $ | 194 | $ | 0.80 | $ | 92 | $ | 0.45 | $ | 347 | $ | 1.43 | $ | 191 | $ | 0.98 | |||||||||||||||||||||||||||||||
Restructuring and realignment | 29 | 0.12 | 37 | 0.18 | 44 | 0.18 | 48 | 0.25 | |||||||||||||||||||||||||||||||||||||||
Acquired intangible amortization | 57 | 0.23 | 36 | 0.17 | 111 | 0.45 | 54 | 0.28 | |||||||||||||||||||||||||||||||||||||||
Special charges (a) | 13 | 0.04 | 67 | 0.33 | 29 | 0.11 | 92 | 0.47 | |||||||||||||||||||||||||||||||||||||||
Tax-related special items | (6) | (0.02) | — | — | (8) | (0.03) | — | — | |||||||||||||||||||||||||||||||||||||||
(Gain) loss from sale of business | (1) | — | — | — | 4 | 0.02 | — | — | |||||||||||||||||||||||||||||||||||||||
Tax effects of adjustments (b) | (20) | (0.08) | (30) | (0.15) | (42) | (0.17) | (39) | (0.20) | |||||||||||||||||||||||||||||||||||||||
Adjusted net income & Adjusted earnings per share | $ | 266 | $ | 1.09 | $ | 202 | $ | 0.98 | $ | 485 | $ | 1.99 | $ | 346 | $ | 1.78 | |||||||||||||||||||||||||||||||
(a) The special charges for the three and six months ended June 30, 2024 and 2023 consist primarily of acquisition and integration costs related to the Evoqua transaction. | ||
(b) The tax effects of adjustments are calculated using the statutory tax rate, taking into consideration the nature of the item and the relevant taxing jurisdiction. | ||
Six Months Ended | |||||||||||
June 30, | |||||||||||
(in millions) | 2024 | 2023 | |||||||||
Net cash provided by operating activities | $ | 377 | $ | 9 | |||||||
Capital expenditures | (147) | (103) | |||||||||
Cash paid in excess of tax provision for R&D law change adoption | — | 33 | |||||||||
Free cash flow | $ | 230 | $ | (61) | |||||||
Net cash used in investing activities | $ | (128) | $ | (489) | |||||||
Net cash provided (used) by financing activities | $ | (419) | $ | 235 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||||||||||
(in millions) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||||
Revenue | $ | 2,169 | $ | 1,722 | 26.0 | % | $ | 4,202 | $ | 3,170 | 32.6 | % | |||||||||||||||||||||||||||||
Gross profit | 819 | 651 | 25.8 | % | 1,571 | 1,197 | 31.2 | % | |||||||||||||||||||||||||||||||||
Gross margin | 37.8 | % | 37.8 | % | — | bp | 37.4 | % | 37.8 | % | (40) | bp | |||||||||||||||||||||||||||||
Total operating expenses | 566 | 532 | 6.4 | % | 1,109 | 947 | 17.1 | % | |||||||||||||||||||||||||||||||||
Expense to revenue ratio | 26.1 | % | 30.9 | % | (480) | bp | 26.4 | % | 29.9 | % | (350) | bp | |||||||||||||||||||||||||||||
Restructuring and realignment costs | 29 | 37 | (21.6) | % | 44 | 48 | (8.3) | % | |||||||||||||||||||||||||||||||||
Acquired intangible asset amortization | 57 | 36 | 58.3 | % | 111 | 54 | 105.6 | % | |||||||||||||||||||||||||||||||||
Special charges | 13 | 67 | (80.6) | % | 29 | 92 | (68.5) | % | |||||||||||||||||||||||||||||||||
Adjusted operating expenses | 467 | 392 | 19.1 | % | 925 | 753 | 22.8 | % | |||||||||||||||||||||||||||||||||
Adjusted operating expenses to revenue ratio | 21.5 | % | 22.8 | % | (130) | bp | 22.0 | % | 23.8 | % | (180) | bp | |||||||||||||||||||||||||||||
Operating income | 253 | 119 | 112.6 | % | 462 | 250 | 84.8 | % | |||||||||||||||||||||||||||||||||
Operating margin | 11.7 | % | 6.9 | % | 480 | bp | 11.0 | % | 7.9 | % | 310 | bp | |||||||||||||||||||||||||||||
Interest and other non-operating expense, net | 7 | 5 | 40.0 | % | 15 | 10 | 50.0 | % | |||||||||||||||||||||||||||||||||
Gain/(Loss) on sale of businesses | 1 | — | NM | (4) | — | NM | |||||||||||||||||||||||||||||||||||
Income tax expense | 53 | 22 | 140.9 | % | 96 | 49 | 95.9 | % | |||||||||||||||||||||||||||||||||
Tax rate | 21.4 | % | 19.1 | % | 230 | bp | 21.6 | % | 20.5 | % | 110 | bp | |||||||||||||||||||||||||||||
Net income | $ | 194 | $ | 92 | 110.9 | % | $ | 347 | $ | 191 | 81.7 | % |
Water Infrastructure | Applied Water | Measurement and Control Solutions | Water Solutions and Services | Total Xylem | ||||||||||||||||||||||||||||||||||||||||
(in millions) | $ Change | % Change | $ Change | % Change | $ Change | % Change | $ Change | % Change | $ Change | % Change | ||||||||||||||||||||||||||||||||||
2023 Revenue | $ | 519 | $ | 478 | $ | 384 | $ | 341 | $ | 1,722 | ||||||||||||||||||||||||||||||||||
Organic Growth | 34 | 6.6 | % | (18) | (3.8) | % | 100 | 26.0 | % | 42 | 12.3 | % | 158 | 9.2 | % | |||||||||||||||||||||||||||||
Acquisitions/(Divestitures) | 84 | 16.1 | % | — | — | % | — | — | % | 218 | 63.9 | % | 302 | 17.5 | % | |||||||||||||||||||||||||||||
Constant Currency | 118 | 22.7 | % | (18) | (3.8) | % | 100 | 26.0 | % | 260 | 76.2 | % | 460 | 26.7 | % | |||||||||||||||||||||||||||||
Foreign currency translation (a) | (6) | (1.1) | % | (4) | (0.8) | % | (2) | (0.5) | % | (1) | (0.4) | % | (13) | (0.7) | % | |||||||||||||||||||||||||||||
Total change in revenue | 112 | 21.6 | % | (22) | (4.6) | % | 98 | 25.5 | % | 259 | 76.0 | % | 447 | 26.0 | % | |||||||||||||||||||||||||||||
2024 Revenue | $ | 631 | $ | 456 | $ | 482 | $ | 600 | $ | 2,169 |
Water Infrastructure | Applied Water | Measurement and Control Solutions | Water Solutions and Services | Total Xylem | ||||||||||||||||||||||||||||||||||||||||
(in millions) | $ Change | % Change | $ Change | % Change | $ Change | % Change | $ Change | % Change | $ Change | % Change | ||||||||||||||||||||||||||||||||||
2023 Revenue | $ | 929 | $ | 931 | $ | 762 | $ | 548 | $ | 3,170 | ||||||||||||||||||||||||||||||||||
Organic Growth | 60 | 6.4 | % | (36) | (3.9) | % | 183 | 24.0 | % | 54 | 9.8 | % | 261 | 8.2 | % | |||||||||||||||||||||||||||||
Acquisitions/(Divestitures) | 221 | 23.8 | % | — | — | % | — | — | % | 561 | 102.4 | % | 782 | 24.7 | % | |||||||||||||||||||||||||||||
Constant Currency | 281 | 30.2 | % | (36) | (3.9) | % | 183 | 24.0 | % | 615 | 112.2 | % | 1,043 | 32.9 | % | |||||||||||||||||||||||||||||
Foreign currency translation (a) | (5) | (0.5) | % | (3) | (0.3) | % | (1) | (0.1) | % | (2) | (0.3) | % | (11) | (0.3) | % | |||||||||||||||||||||||||||||
Total change in revenue | 276 | 29.7 | % | (39) | (4.2) | % | 182 | 23.9 | % | 613 | 111.9 | % | 1,032 | 32.6 | % | |||||||||||||||||||||||||||||
2024 Revenue | $ | 1,205 | $ | 892 | $ | 944 | $ | 1,161 | $ | 4,202 |
Water Infrastructure | Applied Water | Measurement and Control Solutions | Water Solutions and Services | Total Xylem | ||||||||||||||||||||||||||||||||||||||||
(in millions) | $ Change | % Change | $ Change | % Change | $ Change | % Change | $ Change | % Change | $ Change | % Change | ||||||||||||||||||||||||||||||||||
2023 Orders | $ | 563 | $ | 445 | $ | 470 | $ | 378 | $ | 1,856 | ||||||||||||||||||||||||||||||||||
Organic Impact | 43 | 7.6 | % | 23 | 5.2 | % | (85) | (18.1) | % | (4) | (1.1) | % | (23) | (1.2) | % | |||||||||||||||||||||||||||||
Acquisitions/(Divestitures) | 89 | 15.8 | % | — | — | % | — | — | % | 176 | 46.6 | % | 265 | 14.2 | % | |||||||||||||||||||||||||||||
Constant Currency | 132 | 23.4 | % | 23 | 5.2 | % | (85) | (18.1) | % | 172 | 45.5 | % | 242 | 13.0 | % | |||||||||||||||||||||||||||||
Foreign currency translation (a) | (5) | (0.8) | % | (3) | (0.7) | % | (1) | (0.2) | % | (2) | (0.5) | % | (11) | (0.6) | % | |||||||||||||||||||||||||||||
Total change in orders | 127 | 22.6 | % | 20 | 4.5 | % | (86) | (18.3) | % | 170 | 45.0 | % | 231 | 12.4 | % | |||||||||||||||||||||||||||||
2024 Orders | $ | 690 | $ | 465 | $ | 384 | $ | 548 | $ | 2,087 |
Water Infrastructure | Applied Water | Measurement and Control Solutions | Water Solutions and Services | Total Xylem | ||||||||||||||||||||||||||||||||||||||||
(in millions) | $ Change | % Change | $ Change | % Change | $ Change | % Change | $ Change | % Change | $ Change | % Change | ||||||||||||||||||||||||||||||||||
2023 Orders | $ | 1,024 | $ | 928 | $ | 885 | $ | 589 | $ | 3,426 | ||||||||||||||||||||||||||||||||||
Organic Impact | 72 | 7.1 | % | 20 | 2.2 | % | (71) | (8.0) | % | 10 | 1.7 | % | 31 | 0.9 | % | |||||||||||||||||||||||||||||
Acquisitions/(Divestitures) | 243 | 23.7 | % | — | — | % | — | — | % | 643 | 109.2 | % | 886 | 25.9 | % | |||||||||||||||||||||||||||||
Constant Currency | 315 | 30.8 | % | 20 | 2.2 | % | (71) | (8.0) | % | 653 | 110.9 | % | 917 | 26.8 | % | |||||||||||||||||||||||||||||
Foreign currency translation (a) | (3) | (0.3) | % | (3) | (0.4) | % | (1) | (0.1) | % | (3) | (0.5) | % | (10) | (0.3) | % | |||||||||||||||||||||||||||||
Total change in orders | 312 | 30.5 | % | 17 | 1.8 | % | (72) | (8.1) | % | 650 | 110.4 | % | 907 | 26.5 | % | |||||||||||||||||||||||||||||
2024 Orders | $ | 1,336 | $ | 945 | $ | 813 | $ | 1,239 | $ | 4,333 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||||||||||
(in millions) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 485 | $ | 446 | 8.7 | % | $ | 959 | $ | 800 | 19.9 | % | |||||||||||||||||||||||||||||
SG&A as a % of revenue | 22.4 | % | 25.9 | % | (350) | bp | 22.8 | % | 25.2 | % | (240) | bp | |||||||||||||||||||||||||||||
Research and development expenses | 58 | 58 | — | % | 117 | 111 | 5.4 | % | |||||||||||||||||||||||||||||||||
R&D as a % of revenue | 2.7 | % | 3.4 | % | (70) | bp | 2.8 | % | 3.5 | % | (70) | bp | |||||||||||||||||||||||||||||
Restructuring and asset impairment charges | 23 | 28 | (17.9) | % | 33 | 36 | (8.3) | % | |||||||||||||||||||||||||||||||||
Operating expenses | $ | 566 | $ | 532 | 6.4 | % | $ | 1,109 | $ | 947 | 17.1 | % | |||||||||||||||||||||||||||||
Expense to revenue ratio | 26.1 | % | 30.9 | % | (480) | bp | 26.4 | % | 29.9 | % | (350) | bp |
2024 | 2023 | |||||||||||||
Planned reductions - January 1 | 113 | 102 | ||||||||||||
Additional planned reductions | 62 | 106 | ||||||||||||
Actual reductions and reversals | (69) | (132) | ||||||||||||
Planned reductions - June 30 | 106 | 76 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||||||||||
(in millions) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||||
Water Infrastructure | |||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 78 | $ | 70 | 11.4 | % | $ | 138 | $ | 116 | 19.0 | % | |||||||||||||||||||||||||||||
Operating margin | 12.4 | % | 13.5 | % | (110) | bp | 11.5 | % | 12.5 | % | (100) | bp | |||||||||||||||||||||||||||||
Restructuring and realignment costs | 2 | 2 | — | % | 9 | 5 | 80.0 | % | |||||||||||||||||||||||||||||||||
Purchase accounting intangible amortization | 17 | 8 | 112.5 | % | 36 | 9 | 300.0 | % | |||||||||||||||||||||||||||||||||
Special charges | 4 | 12 | (66.7) | 6 | 12 | (50.0) | % | ||||||||||||||||||||||||||||||||||
Adjusted operating income | $ | 101 | $ | 92 | 9.8 | % | $ | 189 | $ | 142 | 33.1 | % | |||||||||||||||||||||||||||||
Adjusted operating margin | 16.0 | % | 17.7 | % | (170) | bp | 15.7 | % | 15.3 | % | 40 | bp | |||||||||||||||||||||||||||||
Applied Water | |||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 71 | $ | 84 | (15.5) | % | $ | 132 | $ | 167 | (21.0) | % | |||||||||||||||||||||||||||||
Operating margin | 15.6 | % | 17.6 | % | (200) | bp | 14.8 | % | 17.9 | % | (310) | bp | |||||||||||||||||||||||||||||
Restructuring and realignment costs | 2 | 2 | — | % | 4 | 5 | (20.0) | % | |||||||||||||||||||||||||||||||||
Adjusted operating income | $ | 73 | $ | 86 | (15.1) | % | $ | 136 | $ | 172 | (20.9) | % | |||||||||||||||||||||||||||||
Adjusted operating margin | 16.0 | % | 18.0 | % | (200) | bp | 15.2 | % | 18.5 | % | (330) | bp | |||||||||||||||||||||||||||||
Measurement and Control Solutions | |||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 79 | $ | 29 | 172.4 | % | $ | 149 | $ | 55 | 170.9 | % | |||||||||||||||||||||||||||||
Operating margin | 16.4 | % | 7.6 | % | 880 | bp | 15.8 | % | 7.2 | % | 860 | bp | |||||||||||||||||||||||||||||
Restructuring and realignment costs | 2 | 3 | (33.3) | % | 4 | 8 | (50.0) | % | |||||||||||||||||||||||||||||||||
Purchase accounting intangible amortization | 14 | 15 | (6.7) | % | 28 | 29 | (3.4) | % | |||||||||||||||||||||||||||||||||
Special charges | 1 | — | NM | % | 1 | 2 | (50.0) | % | |||||||||||||||||||||||||||||||||
Adjusted operating income | $ | 96 | $ | 47 | 104.3 | % | $ | 182 | $ | 94 | 93.6 | % | |||||||||||||||||||||||||||||
Adjusted operating margin | 19.9 | % | 12.2 | % | 770 | bp | 19.3 | % | 12.3 | % | 700 | bp | |||||||||||||||||||||||||||||
Water Solutions and Services | |||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 47 | $ | 26 | 80.8 | % | $ | 97 | $ | 44 | 120.5 | % | |||||||||||||||||||||||||||||
Operating margin | 7.8 | % | 7.6 | % | 20 | bp | 8.4 | % | 8.0 | % | 40 | bp | |||||||||||||||||||||||||||||
Restructuring and realignment costs | 23 | 8 | 187.5 | % | 26 | 8 | 225.0 | % | |||||||||||||||||||||||||||||||||
Purchase accounting intangible amortization | 26 | 13 | 100.0 | % | 47 | 16 | 193.8 | % | |||||||||||||||||||||||||||||||||
Special charges | 3 | 7 | (57.1) | % | 12 | 7 | 71.4 | % | |||||||||||||||||||||||||||||||||
Adjusted operating income | $ | 99 | $ | 54 | 83.3 | % | $ | 182 | $ | 75 | 142.7 | % | |||||||||||||||||||||||||||||
Adjusted operating margin | 16.5 | % | 15.8 | % | 70 | bp | 15.7 | % | 13.7 | % | 200 | bp | |||||||||||||||||||||||||||||
Corporate and other | |||||||||||||||||||||||||||||||||||||||||
Operating loss | $ | (22) | $ | (90) | (75.6) | % | $ | (54) | $ | (132) | (59.1) | % | |||||||||||||||||||||||||||||
Restructuring and realignment costs | — | 22 | NM | 1 | 22 | (95.5) | % | ||||||||||||||||||||||||||||||||||
Special charges | 5 | 48 | (89.6) | % | 10 | 71 | (85.9) | % | |||||||||||||||||||||||||||||||||
Adjusted operating loss | $ | (17) | $ | (20) | (15.0) | % | $ | (43) | $ | (39) | 10.3 | % | |||||||||||||||||||||||||||||
Total Xylem | |||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 253 | $ | 119 | 112.6 | % | $ | 462 | $ | 250 | 84.8 | % | |||||||||||||||||||||||||||||
Operating margin | 11.7 | % | 6.9 | % | 480 | bp | 11.0 | % | 7.9 | % | 310 | bp | |||||||||||||||||||||||||||||
Restructuring and realignment costs | 29 | 37 | (21.6) | % | 44 | 48 | (8.3) | % | |||||||||||||||||||||||||||||||||
Purchase accounting intangible amortization | 57 | 36 | 58.3 | % | 111 | 54 | 105.6 | % | |||||||||||||||||||||||||||||||||
Special charges | 13 | 67 | (80.6) | % | 29 | 92 | (68.5) | % | |||||||||||||||||||||||||||||||||
Adjusted operating income | $ | 352 | $ | 259 | 35.9 | % | $ | 646 | $ | 444 | 45.5 | % | |||||||||||||||||||||||||||||
Adjusted operating margin | 16.2 | % | 15.0 | % | 120 | bp | 15.4 | % | 14.0 | % | 140 | bp |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
(in millions) | June 30 | June 30 | |||||||||||||||||||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||||||||||||||||||||||
Net Income | $ | 194 | $ | 92 | 111 | % | $ | 347 | $ | 191 | 82 | % | |||||||||||||||||||||||||||||
Net Income margin | 8.9 | % | 5.3 | % | 360 | bp | 8.3 | % | 6.0 | % | 230 | bp | |||||||||||||||||||||||||||||
Depreciation | 62 | 41 | 51 | % | 123 | 69 | 78 | % | |||||||||||||||||||||||||||||||||
Amortization | 83 | 51 | 63 | % | 156 | 83 | 88 | % | |||||||||||||||||||||||||||||||||
Interest expense, net | 6 | 5 | 20 | % | 13 | 7 | 86 | % | |||||||||||||||||||||||||||||||||
Income tax expense | 53 | 22 | 141 | % | 96 | 49 | 96 | % | |||||||||||||||||||||||||||||||||
EBITDA | $ | 398 | $ | 211 | 89 | % | $ | 735 | $ | 399 | 84 | % | |||||||||||||||||||||||||||||
Share-based compensation | 13 | 15 | (13) | % | 31 | 27 | 15 | % | |||||||||||||||||||||||||||||||||
Restructuring & realignment | 29 | 36 | (19) | % | 44 | 47 | (6) | % | |||||||||||||||||||||||||||||||||
Special charges | 13 | 67 | (81) | % | 29 | 92 | (68) | % | |||||||||||||||||||||||||||||||||
(Gain)/Loss on sale of businesses | (1) | — | NM | 4 | — | NM | |||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 452 | $ | 329 | 37 | % | $ | 843 | $ | 565 | 49 | % | |||||||||||||||||||||||||||||
Adjusted EBITDA margin | 20.8% | 19.1% | 170 | bp | 20.1% | 17.8% | 230 | bp |
Three Months Ended | ||||||||||||||||||||||||||
June 30, 2024 | ||||||||||||||||||||||||||
(in millions) | Water Infrastructure | Applied Water Systems | Measurement and Control Solutions | Water Solutions and Services | ||||||||||||||||||||||
Operating Income | $ | 78 | $ | 71 | $ | 79 | $ | 47 | ||||||||||||||||||
Operating margin | 12.4 | % | 15.6 | % | 16.4 | % | 7.8 | % | ||||||||||||||||||
Gain on sale of businesses | — | — | — | 1 | ||||||||||||||||||||||
Depreciation | 10 | 7 | 7 | 38 | ||||||||||||||||||||||
Amortization | 27 | — | 25 | 28 | ||||||||||||||||||||||
Other non-operating income (expense), excluding interest | — | (1) | (2) | 1 | ||||||||||||||||||||||
EBITDA | $ | 115 | $ | 77 | $ | 109 | $ | 115 | ||||||||||||||||||
Share-based compensation | 4 | 1 | 1 | 3 | ||||||||||||||||||||||
Restructuring & realignment | 2 | 2 | 2 | 23 | ||||||||||||||||||||||
Special charges | 4 | — | 1 | 3 | ||||||||||||||||||||||
Gain on sale of businesses | — | — | — | (1) | ||||||||||||||||||||||
Adjusted EBITDA | $ | 125 | $ | 80 | $ | 113 | $ | 143 | ||||||||||||||||||
Adjusted EBITDA margin | 19.8 | % | 17.5 | % | 23.4 | % | 23.8 | % |
Three Months Ended | ||||||||||||||||||||||||||
June 30, 2023 | ||||||||||||||||||||||||||
(in millions) | Water Infrastructure | Applied Water Systems | Measurement and Control Solutions | Water Solutions and Services | ||||||||||||||||||||||
Operating Income | $ | 70 | $ | 84 | $ | 29 | $ | 26 | ||||||||||||||||||
Operating margin | 13.5 | % | 17.6 | % | 7.6 | % | 7.6 | % | ||||||||||||||||||
Depreciation | 8 | 6 | 7 | 19 | ||||||||||||||||||||||
Amortization | 10 | 1 | 24 | 15 | ||||||||||||||||||||||
Other non-operating income (expense), excluding interest | 1 | — | (1) | — | ||||||||||||||||||||||
EBITDA | $ | 89 | $ | 91 | $ | 59 | $ | 60 | ||||||||||||||||||
Share-based compensation | 3 | — | 2 | 4 | ||||||||||||||||||||||
Restructuring & realignment | 2 | 2 | 2 | 8 | ||||||||||||||||||||||
Special Charges | 12 | — | — | 7 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 106 | $ | 93 | $ | 63 | $ | 79 | ||||||||||||||||||
Adjusted EBITDA margin | 20.4 | % | 19.5 | % | 16.4 | % | 23.2 | % |
Three Months Ended | ||||||||||||||||||||||||||
2024 versus 2023 | ||||||||||||||||||||||||||
(in millions) | Water Infrastructure | Applied Water Systems | Measurement and Control Solutions | Water Solutions and Services | ||||||||||||||||||||||
Operating Income (Loss) | $ | 8 | $ | (13) | $ | 50 | $ | 21 | ||||||||||||||||||
Operating margin | (110) bps | (200) bps | 880 bps | 20 bps | ||||||||||||||||||||||
Gain on sale of businesses | — | — | — | 1 | ||||||||||||||||||||||
Depreciation | 2 | 1 | — | 19 | ||||||||||||||||||||||
Amortization | 17 | (1) | 1 | 13 | ||||||||||||||||||||||
Other non-operating income (expense), excluding interest | (1) | (1) | (1) | 1 | ||||||||||||||||||||||
EBITDA | $ | 26 | $ | (14) | $ | 50 | $ | 55 | ||||||||||||||||||
Share-based compensation | 1 | 1 | (1) | (1) | ||||||||||||||||||||||
Restructuring & realignment | — | — | — | 15 | ||||||||||||||||||||||
Special charges | (8) | — | 1 | (4) | ||||||||||||||||||||||
Gain on sale of businesses | — | — | — | (1) | ||||||||||||||||||||||
Adjusted EBITDA | $ | 19 | $ | (13) | $ | 50 | $ | 64 | ||||||||||||||||||
Adjusted EBITDA margin | (60) bps | (200) bps | 700 bps | 60 bps |
Six Months Ended | ||||||||||||||||||||||||||
June 30, 2024 | ||||||||||||||||||||||||||
(in millions) | Water Infrastructure | Applied Water Systems | Measurement and Control Solutions | Water Solutions and Services | ||||||||||||||||||||||
Operating Income | $ | 138 | $ | 132 | $ | 149 | $ | 97 | ||||||||||||||||||
Operating margin | 11.5 | % | 14.8 | % | 15.8 | % | 8.4 | % | ||||||||||||||||||
(Loss) on sale of businesses | — | — | — | (4) | ||||||||||||||||||||||
Depreciation | 20 | 13 | 13 | 76 | ||||||||||||||||||||||
Amortization | 48 | 1 | 52 | 50 | ||||||||||||||||||||||
Other non-operating income (expense), excluding interest | (1) | (1) | (3) | 1 | ||||||||||||||||||||||
EBITDA | $ | 205 | $ | 145 | $ | 211 | $ | 220 | ||||||||||||||||||
Share-based compensation | 7 | 3 | 2 | 6 | ||||||||||||||||||||||
Restructuring & realignment | 9 | 4 | 4 | 26 | ||||||||||||||||||||||
Special charges | 6 | — | 1 | 12 | ||||||||||||||||||||||
Loss on sale of businesses | — | — | — | 4 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 227 | $ | 152 | $ | 218 | $ | 268 | ||||||||||||||||||
Adjusted EBITDA margin | 18.8 | % | 17.0 | % | 23.1 | % | 23.1 | % |
Six Months Ended | ||||||||||||||||||||||||||
June 30, 2023 | ||||||||||||||||||||||||||
(in millions) | Water Infrastructure | Applied Water Systems | Measurement and Control Solutions | Water Solutions and Services | ||||||||||||||||||||||
Operating Income | $ | 116 | $ | 167 | $ | 55 | $ | 44 | ||||||||||||||||||
Operating margin | 12.5 | % | 17.9 | % | 7.2 | % | 8.0 | % | ||||||||||||||||||
Gain from sale of business | — | — | — | — | ||||||||||||||||||||||
Depreciation | 15 | 11 | 13 | 29 | ||||||||||||||||||||||
Amortization | 12 | 2 | 48 | 18 | ||||||||||||||||||||||
Other non-operating income (expense), excluding interest | 1 | (1) | (1) | — | ||||||||||||||||||||||
EBITDA | $ | 144 | $ | 179 | $ | 115 | $ | 91 | ||||||||||||||||||
Share-based compensation | 5 | 1 | 4 | 5 | ||||||||||||||||||||||
Restructuring & realignment | 5 | 5 | 7 | 8 | ||||||||||||||||||||||
Special Charges | 12 | — | 2 | 7 | ||||||||||||||||||||||
Gain from sale of business | — | — | — | — | ||||||||||||||||||||||
Adjusted EBITDA | $ | 166 | $ | 185 | $ | 128 | $ | 111 | ||||||||||||||||||
Adjusted EBITDA margin | 17.9 | % | 19.9 | % | 16.8 | % | 20.3 | % |
Six Months Ended | ||||||||||||||||||||||||||
2024 versus 2023 | ||||||||||||||||||||||||||
(in millions) | Water Infrastructure | Applied Water Systems | Measurement and Control Solutions | Water Solutions and Services | ||||||||||||||||||||||
Operating Income (Loss) | $ | 22 | $ | (35) | $ | 94 | $ | 53 | ||||||||||||||||||
Operating margin | (100) bps | (310) bps | 860 bps | 40 bps | ||||||||||||||||||||||
(Loss) on sale of businesses | — | — | — | (4) | ||||||||||||||||||||||
Depreciation | 5 | 2 | — | 47 | ||||||||||||||||||||||
Amortization | 36 | (1) | 4 | 32 | ||||||||||||||||||||||
Other non-operating income (expense), excluding interest | (2) | — | (2) | 1 | ||||||||||||||||||||||
EBITDA | $ | 61 | $ | (34) | $ | 96 | $ | 129 | ||||||||||||||||||
Share-based compensation | 2 | 2 | (2) | 1 | ||||||||||||||||||||||
Restructuring & realignment | 4 | (1) | (3) | 18 | ||||||||||||||||||||||
Special charges | (6) | — | (1) | 5 | ||||||||||||||||||||||
Loss on sale of businesses | — | — | — | 4 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 61 | $ | (33) | $ | 90 | $ | 157 | ||||||||||||||||||
Adjusted EBITDA margin | 90 bps | (290) bps | 630 bps | 280 bps |
Six Months Ended | |||||||||||||||||
June 30, | |||||||||||||||||
(in millions) | 2024 | 2023 | Change | ||||||||||||||
Operating activities | $ | 377 | $ | 9 | $ | 368 | |||||||||||
Investing activities | (128) | (489) | 361 | ||||||||||||||
Financing activities | (419) | 235 | (654) | ||||||||||||||
Foreign exchange (a) | (34) | 9 | (43) | ||||||||||||||
Total | $ | (204) | $ | (236) | $ | 32 |
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS) PERIOD | TOTAL NUMBER OF SHARES PURCHASED | AVERAGE PRICE PAID PER SHARE (a) | TOTAL NUMBER OF SHARES PURCHASED AS PART OF PUBLICLY ANNOUNCED PLANS OR PROGRAMS (b) | APPROXIMATE DOLLAR VALUE OF SHARES THAT MAY YET BE PURCHASED UNDER THE PLANS OR PROGRAMS (b) | ||||||||||||||||||||||
4/1/24 - 4/30/24 | — | — | — | $182 | ||||||||||||||||||||||
5/1/24 - 5/31/24 | — | — | — | $182 | ||||||||||||||||||||||
6/1/24 - 6/30/24 | — | — | — | $182 |
Exhibit Number | Description | Location | |||||||||
Fourth Amended and Restated Articles of Incorporation of Xylem Inc. | Incorporated by reference to Exhibit 3.1 of Xylem Inc.’s Form 8-K filed on May 15, 2017 (CIK No. 1524472, File No. 1-35229). | ||||||||||
Fifth Amended and Restated By-laws of Xylem Inc. | Incorporated by reference to Exhibit 3.1 of Xylem Inc.’s Form 8-K filed on November 15, 2022 (CIK No. 1524472, File No. 1-35229). | ||||||||||
Certification pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith. | ||||||||||
Certification pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith. | ||||||||||
Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | This Exhibit is intended to be furnished in accordance with Regulation S-K Item 601(b) (32) (ii) and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference. | ||||||||||
101.0 | The following materials from Xylem Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024, formatted in Inline Extensible Business Reporting Language (Inline XBRL): (i) Condensed Consolidated Income Statements, (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Balance Sheets, (iv) Condensed Consolidated Statements of Cash Flows and (v) Notes to Condensed Consolidated Financial Statements | The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document. | |||||||||
104.0 | The cover page from Xylem Inc.'s Quarterly Report on Form 10-Q for the period ended June 30, 2024 formatted in Inline XBRL and contained in Exhibit 101.0. | ||||||||||
# Management contract or compensatory plan or arrangement |
XYLEM INC. | ||||||||
(Registrant) | ||||||||
/s/ Geri-Michelle McShane | ||||||||
Geri-Michelle McShane | ||||||||
Vice President, Controller and Chief Accounting Officer | ||||||||
/s/ Matthew F. Pine | |||||
Matthew F. Pine President and Chief Executive Officer |
/s/ William K. Grogan | |||||
William K. Grogan Senior Vice President and Chief Financial Officer |
/s/ Matthew F. Pine | |||||
Matthew F. Pine | |||||
President and Chief Executive Officer | |||||
July 30, 2024 | |||||
/s/ William K. Grogan | |||||
William K. Grogan | |||||
Senior Vice President and Chief Financial Officer | |||||
July 30, 2024 |
Recently Issued Accounting Pronouncements |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures." This guidance requires disclosure information about significant segment expenses. The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The standard is required to be applied on a retrospective basis to all periods presented in the consolidated financial statements. The Company is currently evaluating the impacts of the guidance on our disclosures in future periods. In December 2023, the FASB issued ASU No. 2023-09, "Improvements to Income Tax Disclosures." The ASU is intended to improve income tax disclosure requirements, primarily through additional disclosures about a reporting entity’s effective tax rate reconciliations as well as information on income taxes paid. The standard is effective for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025, with early adoption permitted. The amendments are required to be applied on a prospective basis, with the option to apply retrospectively to all prior periods presented in the consolidated financial statements. The Company is currently evaluating the method of adoption and the impacts of the guidance on our disclosures in future periods. Recently Adopted Pronouncements In September 2022, the FASB issued ASU 2022-04, "Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations." This guidance requires disclosure of the key terms of outstanding supplier finance programs and a rollforward of the related obligations. The standard does not affect the recognition, measurement, or financial statement presentation of supplier finance program obligations. The ASU became effective January 1, 2023, and the rollforward requirement became effective January 1, 2024. Refer to Note 11, "Current Liabilities" for the disclosures related to our adoption of the standard.
|
Condensed Consolidated Income Statements (Unaudited) - USD ($) shares in Thousands, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Revenue | $ 2,169 | $ 1,722 | $ 4,202 | $ 3,170 |
Cost of revenue | 1,350 | 1,071 | 2,631 | 1,973 |
Gross profit | 819 | 651 | 1,571 | 1,197 |
Selling, general and administrative expenses | 485 | 446 | 959 | 800 |
Research and development expenses | 58 | 58 | 117 | 111 |
Restructuring and asset impairment charges | 23 | 28 | 33 | 36 |
Operating income | 253 | 119 | 462 | 250 |
Interest expense | 11 | 12 | 25 | 21 |
Other non-operating income, net | 4 | 7 | 10 | 11 |
Gain/(Loss) on sale of businesses | 1 | 0 | (4) | 0 |
Income before taxes | 247 | 114 | 443 | 240 |
Income tax expense | 53 | 22 | 96 | 49 |
Net income | $ 194 | $ 92 | $ 347 | $ 191 |
Earnings per share: | ||||
Basic (usd per share) | $ 0.80 | $ 0.45 | $ 1.43 | $ 0.99 |
Diluted (usd per share) | $ 0.80 | $ 0.45 | $ 1.43 | $ 0.98 |
Weighted average number of shares: | ||||
Basic (in shares) | 242,572 | 205,539 | 242,213 | 192,967 |
Diluted (in shares) | 243,538 | 206,740 | 243,279 | 194,029 |
Revenue from products | ||||
Revenue | $ 1,802 | $ 1,501 | $ 3,492 | $ 2,809 |
Cost of revenue | 1,079 | 916 | 2,100 | 1,707 |
Revenue from services | ||||
Revenue | 367 | 221 | 710 | 361 |
Cost of revenue | $ 271 | $ 155 | $ 531 | $ 266 |
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 194 | $ 92 | $ 347 | $ 191 |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustment | 6 | (38) | (59) | (16) |
Net change in derivative hedge agreements: | ||||
Unrealized gain (loss) | 0 | (3) | (3) | 1 |
Amount of (gain) loss reclassified into net income | (1) | (1) | 0 | 4 |
Net change in post-retirement benefit plans: | ||||
Amortization of prior service credit | 0 | (1) | 0 | (1) |
Amortization of actuarial (gain) loss into net income | 0 | 0 | 0 | (1) |
Foreign currency translation adjustment | 0 | (1) | 2 | (1) |
Other comprehensive income (loss), before tax | 5 | (44) | (60) | (14) |
Income tax (benefit) expense related to items of other comprehensive income (loss) | 5 | (9) | 16 | (14) |
Other comprehensive income (loss), net of tax | 0 | (35) | (76) | 0 |
Comprehensive income | $ 194 | $ 57 | $ 271 | $ 191 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowances for discounts, returns and credit losses | $ 54 | $ 56 |
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 750,000,000.0 | 750,000,000.0 |
Common Stock, shares issued | 259,100,000 | 257,600,000 |
Treasury stock, shares | 16,200,000 | 16,000,000.0 |
Background and Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
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 four segments, Water Infrastructure, Applied Water, Measurement and Control Solutions and Water Solutions and Services. 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. Acquisition of Evoqua On May 24, 2023, Xylem completed the acquisition of Evoqua Water Technologies Corp. (“Evoqua”). Refer to Note 3, "Acquisitions and Divestitures," for additional information. 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, 2023 ("2023 Annual Report") in preparing these unaudited condensed consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes included in our 2023 Annual Report. Certain prior year amounts have been reclassified to conform to the current year presentation. 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, valuation results associated with purchase accounting, post-retirement obligations and assets, revenue recognition, income taxes, valuation of intangible assets, goodwill and indefinite-lived intangible impairment testing and contingent liabilities. Actual results could differ from these estimates. The Company announced a change to its reportable segments effective January 1, 2024, and as a result, is now reporting the financial position and results of operations of its former Integrated Solutions and Services segment together with the dewatering business, previously within our Water Infrastructure segment, and the assessment services business, previously within our Measurement and Control Solutions segment, in a new segment that is referred to as Water Solutions and Services. The Company’s Water Infrastructure reportable segment no longer includes the results of the dewatering business, and the Company’s Measurement and Control Solutions reportable segment no longer includes the results of the assessment services business. The Company's Applied Water reportable segment remains unchanged. As a result of the change, the Company has recast prior period segment amounts to align with the new segment reporting. The recast financial information reflects depreciation, amortization and share-based compensation specifically identified to the segments that were previously reported within Corporate and other and Regional selling locations as part of an overall allocation. These changes have no impact on the Company’s historical consolidated financial position or results of operations. 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.
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Acquisitions and Divestitures |
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Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Divestitures | Acquisitions and Divestitures Evoqua Water Technologies Corp. On May 24, 2023, the Company completed the acquisition of 100% of the issued and outstanding shares of Evoqua, a leader in providing water and wastewater treatment solutions, offering a broad portfolio of products and services to support industrial, municipal, and recreational customers, pursuant to the Agreement and Plan of Merger dated January 22, 2023 (the “Merger Agreement”). The Merger Agreement provided that Fore Merger Sub, Inc., a wholly owned subsidiary of the Company, merge with and into Evoqua, with Evoqua surviving as a wholly owned subsidiary of Xylem (the “Merger”). Under the terms and conditions of the Merger Agreement, each share of Evoqua common stock issued and outstanding immediately prior to the effective time of the Merger (other than certain excluded shares as described in the Merger Agreement) was converted into the right to receive 0.48 (the “Exchange Ratio”) of a share of the common stock of Xylem. Upon the effectiveness of the Merger on May 24, 2023, legacy Evoqua stockholders owned approximately 25% and legacy Xylem shareholders owned approximately 75% of the combined company. The purchase price for purposes of the Merger consisted of an aggregate of $6,121 million of the Company’s common stock, $160 million in replacement equity awards, and $619 million to repay certain indebtedness of Evoqua (refer to Note 12, "Credit Facilities and Debt"). The acquisition-date fair value of the consideration totaled $6,900 million, which consisted of the following:
The Company has applied the acquisition method of accounting in accordance with ASC 805, Business Combinations (“ASC 805”) and recognized assets acquired and liabilities assumed at their fair value as of the date of acquisition, with the excess purchase consideration recorded to goodwill. During the second quarter of 2024, the Company finalized the purchase price allocation. The following table summarizes the acquisition date fair value of net tangible and intangible assets acquired, net of liabilities assumed from Evoqua:
(a) Including $320 million of receivables and $110 million of contract assets. Prior to finalizing the purchase price allocation during the second quarter of 2024, the fair values of the assets acquired and liabilities assumed were determined using the income and cost approaches. In many cases, the determination of the fair values required estimates about discount rates, future expected cash flows and other future events that are judgmental and subject to change. The fair value of receivables acquired is $320 million, with the gross contractual amount being $329 million. The Company expects $9 million to be uncollectible. The $4,801 million of goodwill recognized, which is not deductible for U.S. income tax purposes, is primarily attributable to synergies and economies of scale expected from combining the operations of Evoqua and Xylem as well as the assembled workforce of Evoqua. Identifiable Intangible Assets Acquired The following table summarizes key information underlying identifiable intangible assets related to the Evoqua acquisition:
The estimate of the fair value of Evoqua’s identifiable intangible assets was determined primarily using the “income approach,” which requires a forecast of all of the expected future cash flows either through the use of the multi-period excess earnings method or the relief-from-royalty method. The fair value measurements were primarily based on significant inputs that are not observable in the market and thus represent a Level 3 measurement of the fair value hierarchy as defined in ASC 820, Fair Value Measurements (“ASC 820”). Intangible assets consisting of the Evoqua tradename, technology, customer relationships, backlog, and permits were valued using the multi-period excess earnings method (“MEEM”), the relief from royalty (“RFR”) method, or the with and without method, which are all forms of the income approach. Intangible assets related to Evoqua software were valued using the cost approach. •Trademarks and proprietary technology intangible assets were valued using the RFR method. The RFR method of valuation suggests that in lieu of ownership, the acquirer can obtain comparable rights to use the subject asset via a license from a hypothetical third-party owner. The asset’s Fair Value is the present value of license fees avoided by owning it (i.e., the royalty savings). •Customer and distributor relationships and backlog intangible assets were valued using the MEEM method. The MEEM method of valuation is an approach where the net earnings attributable to the asset being measured are isolated from other “contributory assets” over the intangible asset’s remaining economic life. •The Permits intangible asset was valued using the with and without method. The with and without method of valuation is an approach that considers the hypothetical impact to the projected cash flows of the business if the intangible asset was not put in place. •The Software intangible asset was valued using the cost approach. The cost approach method of valuation is an approach that relies on estimating the replacement or reproduction costs new of assets, along with factors of physical deterioration, based on the principle that an asset would not be purchased for a price higher than the cost to replace it with an asset of comparable utility. •Inventory was estimated using the comparative sales method, which quantifies the fair value of inventory based on the expected sales price of the subject inventory (when complete), reduced for: (i) all costs expected to be incurred in its completion and disposition efforts and (ii) a profit on those value-added completion and disposition costs. Stock-Based Compensation In connection with the Merger, each outstanding and issued option, restricted stock unit (“RSU”), performance stock unit (“PSU”) and cash-settled stock appreciation right (“SAR”) was converted into the Xylem equivalent, with outstanding PSUs being converted into Xylem RSUs. As a result, Xylem issued 2 million replacement equity options and 707 thousand RSU awards (of which 330 thousand were converted PSUs.) The portion of the fair value related to pre-combination services of $160 million was included in the purchase price, and $56 million will be recognized over the remaining service periods. As of June 30, 2024, the future unrecognized expense related to the outstanding options and RSUs was less than $1 million and approximately $5 million, respectively. The future unrecognized expense related to options and RSUs will be recognized over a weighted-average service period of approximately one year. SARs are immaterial. Pro Forma Financial Information The following table summarizes, on an unaudited pro forma basis, the condensed combined results of operations of the Company for the three and six months ended June 30, 2023, assuming the acquisition had occurred on January 1, 2022.
The foregoing unaudited pro forma results are for informational purposes only and are not necessarily indicative of the actual results of operations that might have occurred had the acquisition occurred on January 1, 2022, nor are they necessarily indicative of future results. The unaudited pro-forma information for all periods presented includes the following adjustments, where applicable, for business combination accounting effects resulting from the acquisition: (i) amortization of the fair value step up in inventory, (ii) additional amortization expense related to finite-lived intangible assets acquired, (iii) repayment of Evoqua’s term loan and revolver and the settlement of the related interest rate swap, (iv) additional interest expense related to financing for the acquisition (refer to Note 12, "Credit Facilities and Debt"), (v) depreciation expense on property, plant and equipment, (vi) additional incremental stock-based compensation expense for the replacement of Evoqua’s outstanding equity awards with Xylem’s replacement equity awards, and (vii) the related tax effects assuming that the business combination occurred on January 1, 2022. The significant nonrecurring adjustments reflected in the unaudited pro-forma consolidated information above include the reclassification of the transaction costs to the earliest period presented and the reversal of the impacts related to the settlement of the interest rate swap, each net of tax. Divestitures On June 15, 2023, Xylem sold the former Evoqua carbon reactivation and slurry operations to Desotec US LLC, a subsidiary of Desotec N.V., for approximately $91 million, a price equal to the fair value less costs to sell the business.
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Revenue |
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Revenue | Revenue Disaggregation of Revenue The following table illustrates the sources of revenue:
The following table reflects revenue from contracts with customers by application.
The following table reflects revenue from contracts with customers by geographical region.
(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:
(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 June 30, 2024, the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied for contracts with performance obligations, amount to $1.4 billion, of which $804 million was contributed by the Evoqua acquisition. We expect to recognize the majority of revenue upon the completion of satisfying these performance obligations in the following 60 months. The Company elects to apply the practical expedient to exclude from this disclosure revenue related to performance obligations that are part of a contract whose original expected duration is less than one year.
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Restructuring Charges |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Charges | Restructuring and Asset Impairment Charges Restructuring During the three and six months ended June 30, 2024, we incurred restructuring charges of $23 million and $32 million, respectively. For the three and six months ended June 30, 2024, the charges incurred primarily related to strengthening our competitive positioning and the integration of Evoqua. The following table presents the components of restructuring expense and asset impairment charges:
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 six months ended June 30, 2024 and 2023:
(a)Regional selling locations consist primarily of selling and marketing organizations and related support services that incurred restructuring expense that was allocated to the segments. The liabilities associated with restructuring expense were not allocated to the segments. The following table presents expected restructuring spend in 2024 and thereafter:
The actions commenced in 2024 consist primarily of severance and asset impairment charges. The actions are expected to continue through the end of 2025. During the second quarter of 2024, we recognized $15 million in impairment charges primarily related to customer relationships and trademarks due to restructuring actions within our Water Solutions and Services segment. Asset Impairment During the first quarter of 2024, we recognized a $1 million impairment charge for internally developed software within Corporate. Refer to Note 9, "Goodwill and Other Intangible Assets," for additional information. During the first quarter of 2023, we determined that internally developed in-process software within our Measurement and Control Solutions segment was impaired as a result of actions taken to prioritize strategic investments and we therefore recognized an impairment charge of $2 million. Refer to Note 9, "Goodwill and Other Intangible Assets," for additional information.
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Income Taxes |
6 Months Ended |
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Jun. 30, 2024 | |
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 the 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 June 30, 2024 was $53 million resulting in an effective tax rate of 21.4%, compared to a $22 million expense resulting in an effective tax rate of 19.1% for the same period in 2023. The income tax provision for the six months ended June 30, 2024 was $96 million resulting in an effective tax rate of 21.6%, compared to a $49 million expense resulting in an effective tax rate of 20.5% for the same period in 2023. The effective tax rate for the three and six month periods ended June 30, 2024 were higher than the U.S. federal statutory rate primarily due to earnings mix. Unrecognized Tax Benefits During 2019, Xylem’s Swedish subsidiary received a tax assessment from the Swedish Tax Agency (the "STA") for the 2013 tax year related to the tax treatment of an intercompany transfer of certain intellectual property that was made in connection with a reorganization of our European businesses. Xylem filed an appeal with the Administrative Court of Växjö, which rendered a decision adverse to Xylem in June 2022 for SEK837 million (approximately $79 million), consisting of the full tax assessment amount plus penalties and interest. Xylem appealed this decision with the intermediate appellate court, the Administrative Court of Appeal, and on May 15, 2024, that court rendered a decision in favor of Xylem and also remanded an issue to the trial court for resolution. In June 2024, the STA filed a notice of appeal of this decision to the Supreme Administrative Court (the “Court”). The parties await the Court’s decision as to whether it will hear the STA’s appeal, which may impact the timing of when the trial court considers the issue on remand. Management, in consultation with external legal advisors, continues to believe it is more likely than not that Xylem will prevail on the proposed assessment and will continue to vigorously defend our position through this litigation. There can be no assurance that the final determination by the authorities will not be materially different than our position. As of June 30, 2024, we do not have any unrecognized tax benefits related to this uncertain tax position.
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Earnings Per Share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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:
(a)Restricted stock units containing rights to non-forfeitable dividends that participate in undistributed earnings with common stockholders 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.
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Inventories |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories The components of total inventories are summarized as follows:
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill As a result of the change in reportable segments disclosed in Note 1, "Background and Basis of Presentation," goodwill was reallocated amongst segments. This reallocation and changes in the carrying value of goodwill by reportable segment for the six months ended June 30, 2024 are as follows:
The Company has applied the acquisition method of accounting in accordance with ASC 805 and recognized assets acquired and liabilities assumed of Evoqua at their fair value as of the date of acquisition, with the excess purchase consideration recorded to goodwill. We have allocated goodwill to segments of the Company that are expected to benefit from the synergies of the acquisition. Other Intangible Assets Information regarding our other intangible assets is as follows:
Amortization expense related to finite-lived intangible assets was $83 million and $156 million for the three and six-month periods ended June 30, 2024, respectively, and $51 million and $83 million for the three and six-month periods ended June 30, 2023, respectively. During the second quarter of 2024, we recognized $13 million in impairment charges primarily related to customer relationships and trademarks due to restructuring actions within our Water Solutions and Services segment. During the first quarter of 2024, we recognized a $1 million impairment charge for internally developed software within Corporate. During 2023, we determined that internally developed in-process software within our Measurement and Control Solutions segment was impaired as a result of actions taken to prioritize strategic investments and we therefore recognized an impairment charge of $2 million.
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Derivative Financial Instruments |
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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 also reduce the volatility in stockholders' equity. As a result of Evoqua terminating their interest rate swaps prior to the Company completing the acquisition, the Company received $38 million in proceeds during the second quarter of 2023 from the termination of the interest rate swaps. 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 for which we enter into cash flow hedges 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 $323 million and $29 million as of June 30, 2024 and December 31, 2023, respectively. As of June 30, 2024, 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, sell Canadian Dollar and purchase Euro, purchase Polish Zloty and sell Euro, sell Canadian Dollar and purchase U.S. Dollar, sell Australian Dollar and purchase Euro, and purchase Canadian Dollar and sell U.S. Dollar. The purchased notional amounts associated with these currency derivatives are $115 million, $96 million, $41 million, $22 million, $18 million, $15 million, $13 million, and $3 million, respectively. As of December 31, 2023, our most significant foreign currency derivatives included contracts to purchase U.S. Dollar and sell Chinese Yuan and to purchase U.S. Dollar and sell Canadian Dollar. The purchased notional amounts associated with these currency derivatives were $19 million and $10 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 the second quarter of 2019, third quarter of 2020, and second quarter of 2022 we entered into additional cross-currency swaps. The total notional amount of derivative instruments designated as net investment hedges was $1,626 million and $1,691 million as of June 30, 2024 and December 31, 2023, respectively. The table below presents the effect of our derivative financial instruments on the Condensed Consolidated Income Statements and Statements of Comprehensive Income. Items in the table below reflect changes in "Other comprehensive loss" ("OCL") within the Statements of Comprehensive Income:
As of June 30, 2024, $4 million of net losses on cash flow hedges are expected to be reclassified into earnings in the next 12 months. As of June 30, 2024, 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 derivative contracts currently included in our hedging program were as follows:
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Accrued and Other Current Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued and Other Current Liabilities | Current Liabilities The components of total Accrued and other current liabilities are as follows:
The Company facilitates the opportunity for suppliers to participate in voluntary supply chain financing programs with third-party financial institutions. Xylem agrees on commercial terms, including payment terms, with suppliers regardless of program participation. The Company does not determine the terms or conditions of the arrangement between suppliers and the third-party financial institutions. Participating suppliers are paid directly by the third-party financial institution. Xylem pays the third-party financial institution the stated amount of confirmed invoices from its designated suppliers at the original invoice amount on the original maturity dates of the invoices, ranging from 45-180 days. Xylem does not pay fees related to these programs. Xylem or the third-party financial institutions may terminate the agreements upon at least 30 days’ notice. The total outstanding balance presented within "Accounts payable" on our Condensed Consolidated Balance Sheets under these programs is $250 million and $176 million as of June 30, 2024 and December 31, 2023, respectively. The table below provides changes in the confirmed obligations outstanding related to our supplier financing programs over each period:
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Credit Facilities and Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Facilities and Debt | Credit Facilities and Debt Total debt outstanding is summarized as follows:
(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 2026 was $478 million and $482 million as of June 30, 2024 and December 31, 2023, respectively. The fair value of our Senior Notes due 2028 was $449 million and $453 million as of June 30, 2024 and December 31, 2023, respectively. The fair value of our Senior Notes due 2031 was $420 million and $429 million as of June 30, 2024 and December 31, 2023, respectively. The fair value of our Senior Notes due 2046 was $335 million and $349 million as of June 30, 2024 and December 31, 2023, 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 June 26, 2020, we issued 1.950% Senior Notes of $500 million aggregate principal amount due January 2028 (the “Senior Notes due 2028”) and 2.250% Senior Notes of $500 million aggregate principal amount due January 2031 (the “Senior Notes due 2031" and, together with the Senior Notes due 2028, the “Green Bond”). The Green Bond includes covenants that restrict our ability, and the ability of our restricted subsidiaries, to incur debt secured by liens on certain property above a threshold, to engage in certain sale and leaseback transactions involving certain property above a threshold, and to consolidate or merge, or convey or transfer all or substantially all of our assets. We may redeem the Green Bond at any time, at our option, subject to certain conditions, at specified redemption prices, plus accrued and unpaid interest to the redemption date. If a change of control triggering event (as defined in the applicable Green Bond indenture) occurs, we will be required to make an offer to purchase the notes at a price equal to 101% of their principal amount plus accrued and unpaid interest to the date of repurchase. Interest on the Green Bond is payable on January 30 and July 30 of each year. As of June 30, 2024, we are in compliance with all covenants for the Green Bond. 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 2026, the “Senior Notes”). The Senior Notes include covenants that restrict our ability, and the ability of our restricted subsidiaries, to incur debt secured by liens on certain property above a threshold, to engage in certain sale and leaseback transactions involving certain property above a threshold, and to consolidate or merge, or convey or transfer all or substantially all of our assets. 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 2026 and the Senior Notes due 2046 is payable on May 1 and November 1 of each year. As of June 30, 2024, 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 provided 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. On March 1, 2023, Xylem terminated the 2019 Credit Facility among the Company, certain lenders and Citibank, N.A. as Administrative Agent as a result of signing the 2023 Five-Year Revolving Credit Facility. 2023 Five-Year Revolving Credit Facility On March 1, 2023, Xylem entered into a five-year revolving credit facility (the "2023 Credit Facility") with Citibank, N.A., as Administrative Agent, and a syndicate of lenders. The 2023 Credit Facility provides for an aggregate principal amount of up to $1 billion (available in U.S. Dollars and in Euros), with increases of up to $300 million for a maximum aggregate principal amount of $1.3 billion at the request of Xylem and with the consent of the institutions providing such increased commitments. Interest on all loans under the 2023 Credit Facility is payable either quarterly or at the expiration of any Term SOFR or EURIBOR interest period applicable thereto. Borrowings accrue interest at a rate equal to, at Xylem's election, a base rate or an adjusted Term SOFR or EURIBOR rate plus an applicable margin. The 2023 Credit Facility includes customary provisions for implementation of replacement rates for Term SOFR-based and EURIBOR-based loans. The 2023 Credit Facility also includes a pricing grid that determines the applicable margin based on Xylem's credit rating, with a further adjustment based on Xylem's achievement of certain Environmental, Social and Governance ("ESG") key performance indicators. 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 Xylem's 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 with a further adjustment based on Xylem's achievement of certain ESG key performance indicators. The 2023 Credit Facility requires that Xylem maintain a consolidated total debt to consolidated EBITDA ratio (or maximum leverage ratio), which will be based on the last four fiscal quarters. In accordance with the terms of the agreement to the 2023 Credit Facility, Xylem may not exceed a maximum leverage ratio of 4.00 to 1.00 for a period of four consecutive fiscal quarters beginning with the fiscal quarter during which a material acquisition is consummated and a maximum leverage ratio of 3.50 to 1.00 thereafter for a minimum of four fiscal quarters before another material acquisition is consummated. In addition, the 2023 Credit Facility contains 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 2023 Credit Facility also contains customary events of default. Finally, Xylem has the ability to designate subsidiaries that can borrow under the 2023 Credit Facility, subject to certain requirements and conditions set forth in the 2023 Credit Facility. As of June 30, 2024, the 2023 Credit Facility was undrawn, and we are in compliance with all revolver covenants. The 2023 Credit Facility has availability of $1 billion, comprised of the $1 billion aggregate principal as of June 30, 2024. Term Loan Facility On May 9, 2023, the Company’s subsidiary, Xylem Europe GmbH (the “Borrower”) entered into a twenty four-month €250 million (approximately $270 million) term loan facility (the “Term Facility”) the terms of which are set forth in a term loan agreement, among the Borrower, the Company, as parent guarantor and ING Bank. The Company has entered into a parent guarantee in favor of ING Bank also dated May 9, 2023 to secure all present and future obligations of the borrower under the Term Loan Agreement. The net cash proceeds were used to repay a portion of Evoqua’s indebtedness pursuant to the Merger Agreement. On April 19, 2024 our Term Loan Facility was settled with cash on hand for a total of €250 million ($268 million). Equipment Financing As a result of the Evoqua acquisition, the Company has secured financing agreements that require providing a security interest in specified equipment and, in some cases, the underlying contract and related receivables. As of June 30, 2024, the gross and net amounts of those assets are included on the Consolidated Balance Sheets as follows:
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 $1 billion inclusive of the 2023 Credit Facility. As of June 30, 2024 and December 31, 2023, none of the Company's $600 million U.S. Dollar commercial paper program was outstanding, respectively. The net cash proceeds from issuance of commercial paper were used to repay a portion of Evoqua’s indebtedness pursuant to the Merger Agreement. 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 $535 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 June 30, 2024 and December 31, 2023, none of the Company's Euro commercial paper program was outstanding. We have the ability to continue borrowing under this program going forward in future periods. Receivables Securitization Program On April 1, 2021, Evoqua Finance LLC (“Evoqua Finance”), now an indirect wholly-owned subsidiary of the Company, entered into an accounts receivable securitization program (the “Receivables Securitization Program”) consisting of, among other agreements, (i) a Receivables Financing Agreement (as amended, the “Receivables Financing Agreement”) among Evoqua Finance, as the borrower, the lenders from time to time party thereto (the “Receivables Financing Lenders”), PNC Bank, National Association ("PNC"), as administrative agent, EWT LLC, as initial servicer, and PNC Capital Markets LLC, as structuring agent, pursuant to which the lenders have made available to Evoqua Finance a receivables finance facility in an amount up to $150 million, (ii) a Sale and Contribution Agreement (as amended, the “Sale and Contribution Agreement”) among Evoqua Finance, as purchaser, EWT LLC, as initial servicer and as an originator, and Neptune Benson, Inc., an indirectly wholly-owned subsidiary of the Company, as an originator (together with EWT LLC, the “Originators”), and (iii) a Performance Guaranty of Xylem Inc. dated as of May 24, 2023 (the “Performance Guaranty”) in favor of PNC and for the benefit of PNC and the other secured parties under the Receivables Financing Agreement that replaced the performance guaranty of EWT Holdings II Corp. and EWT Holdings III Corp dated as of April 1, 2021. The Receivables Securitization Program contains certain customary representations, warranties, affirmative covenants, and negative covenants, subject to certain cure periods in some cases, including the eligibility of the receivables being sold by the Originators and securing the loans made by the Receivables Financing Lenders, as well as customary reserve requirements, events of default, termination events, and servicer defaults. On July 20, 2023, the Receivables Financing Agreement, the Sale and Contribution Agreement and the Performance Guaranty and the other transaction documents under the Receivables Financing Program were terminated and all outstanding obligations for principal, interest, and fees under the agreement were paid in full.
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Post-retirement Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Post-retirement Benefit Plans | Post-retirement Benefit Plans The components of net periodic benefit cost for our defined benefit pension plans are as follows:
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 post-retirement employee benefit plans was less than $1 million, including net credits recognized into "Other comprehensive income (loss)" of less than $1 million, for both the three and six months ended June 30, 2024 and 2023, respectively. We contributed $7 million and $9 million to our defined benefit plans for the six months ended June 30, 2024 and 2023, respectively. Additional contributions ranging between approximately $16 million and $20 million are expected to be made during the remainder of 2024.
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Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity The following table shows the changes in stockholders' equity for the six months ended June 30, 2024:
The following table shows the changes in stockholders' equity for the six months ended June 30, 2023:
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Share-Based Compensation Plans |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation Plans | Share-Based Compensation Plans Share-based compensation expense was $13 million and $31 million during the three and six months ended June 30, 2024, respectively, and $16 million and $27 million during the three and six months ended June 30, 2023, respectively. The unrecognized compensation expense related to our stock options, restricted stock units and performance share units was $8 million, $50 million and $19 million, respectively, at June 30, 2024 and is expected to be recognized over a weighted average period of 2.1, 2.1 and 2.2 years, respectively. The amount of cash received from the exercise of stock options was $63 million and $40 million for the six months ended June 30, 2024 and 2023, respectively. On May 24, 2023, there were an additional 2.7 million shares registered for issuance. As of June 30, 2024, there were approximately 5.3 million shares of common stock available for future awards. Stock Option Grants The following is a summary of the changes in outstanding stock options for the six months ended June 30, 2024:
The total intrinsic value of options exercised (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) during the six months ended June 30, 2024 was $71 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 employee exercise patterns, stock price volatility and changes in dividends. The following are weighted-average assumptions for 2024 grants:
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 U.S. Treasury yield curve in effect at the time of option grant. Restricted Stock Unit Grants The following is a summary of restricted stock unit activity for the six months ended June 30, 2024. The fair value of the restricted share unit awards is determined using the closing price of our common stock on date of grant:
ROIC and Adjusted EBITDA Performance Share Unit Grants The following is a summary of our ROIC and EBITDA grants for the six months ended June 30, 2024. The fair value of the adjusted EBITDA performance share units is equal to the closing share price on the date of the grant:
(a) Represents an increase in the number of original ROIC performance share units awarded based on the final market condition achievement at the end of the performance period of such awards. TSR Performance Share Unit Grants The following is a summary of our Total Shareholder Return ("TSR") performance share unit grants for the six months ended June 30, 2024:
(a) Represents a decrease 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 2024 grants:
Revenue Performance Share Unit Grants The following is a summary of our Revenue performance share unit grants for the six months ended June 30, 2024:
The fair value of the Revenue performance share unit awards is determined using the closing price of our common stock on date of grant. For the performance periods, the performance share units were awarded at a target of 100% with actual payout contingent upon the achievement of a pre-set, three-year adjusted ROIC performance target for ROIC performance share units, a third-year adjusted EBITDA performance target for adjusted EBITDA performance share units, a pre-set third year revenue target for Revenue performance share units and a relative TSR performance for TSR performance share units.
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Capital Stock |
6 Months Ended |
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Jun. 30, 2024 | |
Equity [Abstract] | |
Capital Stock | Capital Stock For the three and six months ended June 30, 2024, the Company repurchased less than 0.1 million shares of common stock for approximately $3 million and approximately 0.1 million shares of common stock for $18 million, respectively. For the three and six months ended June 30, 2023, the Company repurchased less than 0.1 million shares of common stock for approximately $1 million and approximately 0.1 million shares of common stock for $9 million, respectively. Repurchases include 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 stockholders and maintains our focus on growth. There were no shares repurchased under the program for the three and six months ended June 30, 2024 and June 30, 2023. There are up to $182 million in shares that may still be purchased under this plan as of June 30, 2024. Aside from the aforementioned repurchase program, we repurchased less than 0.1 million shares and approximately 0.1 million shares for approximately $3 million and $18 million for the three and six months ended June 30, 2024, respectively, in relation to settlement of employee tax withholding obligations due as a result of the vesting of restricted stock units. Likewise, we repurchased less than 0.1 million shares and approximately 0.1 million shares for $1 million and $9 million for the three and six months ended June 30, 2023, respectively.
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Accumulated Other Comprehensive Income (Loss) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss The following table provides the components of AOCL for the six months ended June 30, 2024:
The following table provides the components of AOCL for the six months ended June 30, 2023:
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Commitments and Contingencies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 matters including environmental, tax, intellectual property, acquisitions or divestitures, product liability, property damage, personal injury, privacy, employment, labor and pension, government investigations or contract issues and commercial or contractual disputes. 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 $6 million and $18 million as of June 30, 2024 and December 31, 2023, respectively, for these general legal matters. 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 June 30, 2024 and December 31, 2023, the amount of surety bonds, bank guarantees, insurance letters of credit, stand-by letters of credit as well as revenue and customs guarantees was $733 million and $729 million, respectively. Environmental In the ordinary course of business, we are subject to federal, state, local, and foreign environmental laws and regulations. We are responsible, or are alleged to be responsible, for ongoing environmental investigation and remediation of sites in various countries. These sites are in various stages of investigation and/or remediation and in many of these proceedings our liability is considered de minimis. We have received notification from the U.S. Environmental Protection Agency, and from similar state and foreign environmental agencies, that a number of sites formerly or currently owned and/or operated by Xylem or for which we are responsible, 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 $4 million as of June 30, 2024 and December 31, 2023 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 defects and specific non-performance. The table below provides changes in the combined current and non-current product warranty accruals over each period:
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Our business has four reportable segments: Water Infrastructure, Applied Water, Measurement and Control Solutions and Water Solutions and Services. The Water Infrastructure segment focuses on the transportation and treatment of water, offering a range of products including water, wastewater and storm water pumps, controls and systems; treatment equipment: filtration and separation, disinfection, wastewater solutions; anodes and electro chlorination technologies for municipal and industrial applications. 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 and 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 and 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, and remote monitoring and data management. The Water Solutions and Services segment provides tailored services and solutions, in collaboration with customers and backed by life‑cycle services, including on‑demand water, outsourced water, recycle / reuse, specialty dewatering and emergency response service alternatives to improve operational reliability, performance and environmental compliance. Key offerings within this segment also include equipment systems for industrial needs (influent water, boiler feed water, ultrahigh purity, process water, wastewater treatment, and recycle / reuse), full-scale outsourcing of operations and maintenance, and municipal services, including odor and corrosion control services, as well as leak detection, condition assessment and asset management and pressure monitoring solutions. 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" section of Note 1 in the 2023 Annual Report. The following table contains financial information for each reportable segment:
(a)Represents capital expenditures incurred by the Regional selling locations not allocated to the segments.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Pay vs Performance Disclosure | ||||
Net income attributable to Xylem (in usd) | $ 194 | $ 92 | $ 347 | $ 191 |
Insider Trading Arrangements |
3 Months Ended |
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Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Background and Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2024 | |
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, 2023 ("2023 Annual Report") in preparing these unaudited condensed consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes included in our 2023 Annual Report. Certain prior year amounts have been reclassified to conform to the current year presentation. 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, valuation results associated with purchase accounting, post-retirement obligations and assets, revenue recognition, income taxes, valuation of intangible assets, goodwill and indefinite-lived intangible impairment testing and contingent liabilities. Actual results could differ from these estimates. The Company announced a change to its reportable segments effective January 1, 2024, and as a result, is now reporting the financial position and results of operations of its former Integrated Solutions and Services segment together with the dewatering business, previously within our Water Infrastructure segment, and the assessment services business, previously within our Measurement and Control Solutions segment, in a new segment that is referred to as Water Solutions and Services. The Company’s Water Infrastructure reportable segment no longer includes the results of the dewatering business, and the Company’s Measurement and Control Solutions reportable segment no longer includes the results of the assessment services business. The Company's Applied Water reportable segment remains unchanged. As a result of the change, the Company has recast prior period segment amounts to align with the new segment reporting. The recast financial information reflects depreciation, amortization and share-based compensation specifically identified to the segments that were previously reported within Corporate and other and Regional selling locations as part of an overall allocation. These changes have no impact on the Company’s historical consolidated financial position or results of operations. 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.
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Recently Issued Accounting Pronouncements (Policies) |
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Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Recently Adopted Pronouncements | Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures." This guidance requires disclosure information about significant segment expenses. The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The standard is required to be applied on a retrospective basis to all periods presented in the consolidated financial statements. The Company is currently evaluating the impacts of the guidance on our disclosures in future periods. In December 2023, the FASB issued ASU No. 2023-09, "Improvements to Income Tax Disclosures." The ASU is intended to improve income tax disclosure requirements, primarily through additional disclosures about a reporting entity’s effective tax rate reconciliations as well as information on income taxes paid. The standard is effective for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025, with early adoption permitted. The amendments are required to be applied on a prospective basis, with the option to apply retrospectively to all prior periods presented in the consolidated financial statements. The Company is currently evaluating the method of adoption and the impacts of the guidance on our disclosures in future periods. Recently Adopted Pronouncements In September 2022, the FASB issued ASU 2022-04, "Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations." This guidance requires disclosure of the key terms of outstanding supplier finance programs and a rollforward of the related obligations. The standard does not affect the recognition, measurement, or financial statement presentation of supplier finance program obligations. The ASU became effective January 1, 2023, and the rollforward requirement became effective January 1, 2024. Refer to Note 11, "Current Liabilities" for the disclosures related to our adoption of the standard.
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Acquisitions and Divestitures (Tables) |
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Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination, Separately Recognized Transactions | The acquisition-date fair value of the consideration totaled $6,900 million, which consisted of the following:
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Purchase Price Allocation | The following table summarizes the acquisition date fair value of net tangible and intangible assets acquired, net of liabilities assumed from Evoqua:
(a) Including $320 million of receivables and $110 million of contract assets.
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Summary of Intangible Assets Acquired | The following table summarizes key information underlying identifiable intangible assets related to the Evoqua acquisition:
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Pro Forma Information | The following table summarizes, on an unaudited pro forma basis, the condensed combined results of operations of the Company for the three and six months ended June 30, 2023, assuming the acquisition had occurred on January 1, 2022.
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Revenue (Tables) |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table illustrates the sources of revenue:
The following table reflects revenue from contracts with customers by application.
The following table reflects revenue from contracts with customers by geographical region.
(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")
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Contract with Customer, Asset and Liability | The table below provides contract assets, contract liabilities, and significant changes in contract assets and liabilities:
(a)Excludes receivable balances, which are disclosed on the Condensed Consolidated Balance Sheets
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Restructuring Charges (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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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 six months ended June 30, 2024 and 2023:
(a)Regional selling locations consist primarily of selling and marketing organizations and related support services that incurred restructuring expense that was allocated to the segments. The liabilities associated with restructuring expense were not allocated to the segments.
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Expected Restructuring Costs | The following table presents expected restructuring spend in 2024 and thereafter:
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Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
(a)Restricted stock units containing rights to non-forfeitable dividends that participate in undistributed earnings with common stockholders 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.
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Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | The components of total inventories are summarized as follows:
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Goodwill and Other Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the carrying value of goodwill by operating segment | This reallocation and changes in the carrying value of goodwill by reportable segment for the six months ended June 30, 2024 are as follows:
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Other Intangible Assets | Information regarding our other intangible assets is as follows:
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Derivative Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. Items in the table below reflect changes in "Other comprehensive loss" ("OCL") within the Statements of Comprehensive Income:
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Fair values of foreign exchange contracts | The fair values of our derivative contracts currently included in our hedging program were as follows:
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Accrued and Other Current Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued and Other Current Liabilities | The components of total Accrued and other current liabilities are as follows:
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Supplier Finance Program | The table below provides changes in the confirmed obligations outstanding related to our supplier financing programs over each period:
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Credit Facilities and Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Credit Facilities and Long-Term Debt | Total debt outstanding is summarized as follows:
(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 2026 was $478 million and $482 million as of June 30, 2024 and December 31, 2023, respectively. The fair value of our Senior Notes due 2028 was $449 million and $453 million as of June 30, 2024 and December 31, 2023, respectively. The fair value of our Senior Notes due 2031 was $420 million and $429 million as of June 30, 2024 and December 31, 2023, respectively. The fair value of our Senior Notes due 2046 was $335 million and $349 million as of June 30, 2024 and December 31, 2023, 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.
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Schedule of Other Assets | As of June 30, 2024, the gross and net amounts of those assets are included on the Consolidated Balance Sheets as follows:
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Post-retirement Benefit Plans (Tables) |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders Equity | The following table shows the changes in stockholders' equity for the six months ended June 30, 2024:
The following table shows the changes in stockholders' equity for the six months ended June 30, 2023:
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Share-Based Compensation Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the changes in outstanding stock options | The following is a summary of the changes in outstanding stock options for the six months ended June 30, 2024:
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Stock option valuation assumptions | The following are weighted-average assumptions for 2024 grants:
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Summary of restricted stock activity | The following is a summary of restricted stock unit activity for the six months ended June 30, 2024. The fair value of the restricted share unit awards is determined using the closing price of our common stock on date of grant:
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Summary of performance based share grants | The following is a summary of our ROIC and EBITDA grants for the six months ended June 30, 2024. The fair value of the adjusted EBITDA performance share units is equal to the closing share price on the date of the grant:
(a) Represents an increase in the number of original ROIC performance share units awarded based on the final market condition achievement at the end of the performance period of such awards. The following is a summary of our Total Shareholder Return ("TSR") performance share unit grants for the six months ended June 30, 2024:
(a) Represents a decrease 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.
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Performance-based shares valuation assumptions | The following are weighted-average assumptions for 2024 grants:
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Share-based Payment Arrangement, Outstanding Award, Activity, Excluding Option | The following is a summary of our Revenue performance share unit grants for the six months ended June 30, 2024:
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Accumulated Other Comprehensive Income (Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides the components of AOCL for the six months ended June 30, 2024:
The following table provides the components of AOCL for the six months ended June 30, 2023:
|
Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in product warranty accrual | The table below provides changes in the combined current and non-current product warranty accruals over each period:
|
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial information for each reportable segment | The following table contains financial information for each reportable segment:
(a)Represents capital expenditures incurred by the Regional selling locations not allocated to the segments.
|
Recently Issued Accounting Pronouncements (Textuals) (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Termination notice | 30 days | |
Outstanding balance under supplier finance programs | $ 250 | $ 176 |
Minimum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Invoice payment terms | 45 days | |
Maximum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Invoice payment terms | 180 days |
Acquisitions and Divestitures (Purchase Price Allocation) (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
May 24, 2023 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 7,509 | $ 7,587 | |
Evoqua Acquisition | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 143 | ||
Receivables(a) | 430 | ||
Inventories | 258 | ||
Prepaid and other current assets | 78 | ||
Assets held for sale | 8 | ||
Property, plant and equipment, net | 508 | ||
Goodwill | 4,801 | ||
Other intangible assets, net | 1,769 | ||
Other non-current assets | 180 | ||
Non-current assets held for sale | 85 | ||
Accounts payable | (210) | ||
Short-term borrowings and current maturities of long-term debt | (166) | ||
Accrued and other current liabilities | (357) | ||
Liabilities held for sale | (1) | ||
Long-term debt | (111) | ||
Other non-current accrued liabilities | (120) | ||
Deferred income tax liabilities | (392) | ||
Non-current liabilities held for sale | (3) | ||
Total | 6,900 | ||
Receivables, net | 320 | ||
Contract assets | $ 110 |
Acquisitions and Divestitures (Summary of Pro Forma Information) (Details) - Evoqua Acquisition - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
|
Business Acquisition [Line Items] | ||
Business Acquisition, Pro Forma Revenue | $ 2,025 | $ 3,952 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 63 | $ 170 |
Acquisitions and Divestitures (Details) - Evoqua Acquisition - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
May 24, 2023 |
Sep. 30, 2023 |
|
Business Acquisition [Line Items] | ||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 6,121 | |
Business Combination, Consideration Transferred, Equity Interest Issued And Issuable, Replacement Equity Awards | 160 | |
Business Combination, Consideration Transferred, Liabilities Paid | 619 | |
Business Combination, Consideration Transferred | $ 6,900 | |
Stock Issued During Period, Shares, Acquisitions | 58,779,096 |
Revenue (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Change in Contract with Customer, Asset [Abstract] | ||
Beginning balance | $ 263 | $ 151 |
Opening balance from the acquisition of Evoqua | 110 | |
Additions, net | 264 | 85 |
Billings transferred to accounts receivable | (239) | (73) |
Foreign currency and other | (3) | 1 |
Ending balance | 274 | 285 |
Change in Contract with Customer, Liability [Abstract] | ||
Beginning balance | 315 | 183 |
Opening balance from the acquisition of Evoqua | 107 | |
Additions, net | 191 | 94 |
Revenue recognized from opening balance | (201) | (80) |
Foreign currency and other | (6) | (5) |
Ending balance | $ 299 | $ 299 |
Restructuring Charges (Textuals) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2024 |
Mar. 31, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 23 | $ 28 | $ 32 | $ 34 | ||
Asset Impairment Charges | 0 | 0 | 1 | 2 | ||
Corporate and other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 0 | $ 22 | 2 | $ 22 | ||
2023 Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring cost incurred | 1 | $ 6 | $ 71 | |||
Impairment of intangible assets | 2 | |||||
2023 Plan | Corporate and other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring cost incurred | 0 | 1 | $ 35 | |||
2024 Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring cost incurred | 22 | 3 | ||||
2024 Plan | Corporate and other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring cost incurred | $ 0 | $ 0 | ||||
Asset Impairment Charges | $ 1 |
Restructuring Charges (Estimated Restructuring Costs) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2024 |
Mar. 31, 2024 |
Dec. 31, 2023 |
|
2024 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Total expected costs | $ 27 | ||
Restructuring costs incurred during period | 22 | $ 3 | |
Total expected costs remaining | 2 | ||
2023 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Total expected costs | 83 | ||
Restructuring costs incurred during period | 1 | 6 | $ 71 |
Total expected costs remaining | 5 | ||
Operating Segments | Water Infrastructure | 2024 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Total expected costs | 2 | ||
Restructuring costs incurred during period | 0 | 0 | |
Total expected costs remaining | 2 | ||
Operating Segments | Water Infrastructure | 2023 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Total expected costs | 20 | ||
Restructuring costs incurred during period | 1 | 5 | 13 |
Total expected costs remaining | 1 | ||
Operating Segments | Applied Water | 2024 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Total expected costs | 1 | ||
Restructuring costs incurred during period | 0 | 1 | |
Total expected costs remaining | 0 | ||
Operating Segments | Applied Water | 2023 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Total expected costs | 10 | ||
Restructuring costs incurred during period | 0 | 0 | 6 |
Total expected costs remaining | 4 | ||
Operating Segments | Measurement and Control Solutions | 2024 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Total expected costs | 0 | ||
Restructuring costs incurred during period | 0 | 0 | |
Total expected costs remaining | 0 | ||
Operating Segments | Measurement and Control Solutions | 2023 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Total expected costs | 10 | ||
Restructuring costs incurred during period | 0 | 0 | 10 |
Total expected costs remaining | 0 | ||
Operating Segments | Water Solutions and Services | 2024 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Total expected costs | 24 | ||
Restructuring costs incurred during period | 22 | 2 | |
Total expected costs remaining | 0 | ||
Operating Segments | Water Solutions and Services | 2023 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Total expected costs | 7 | ||
Restructuring costs incurred during period | 0 | 0 | 7 |
Total expected costs remaining | 0 | ||
Corporate and other | 2024 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Total expected costs | 0 | ||
Restructuring costs incurred during period | 0 | 0 | |
Total expected costs remaining | 0 | ||
Corporate and other | 2023 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Total expected costs | 36 | ||
Restructuring costs incurred during period | 0 | $ 1 | $ 35 |
Total expected costs remaining | $ 0 |
Income Taxes (Textuals) (Details) kr in Millions, $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2022
SEK (kr)
|
Jun. 30, 2024
USD ($)
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2024
USD ($)
|
Jun. 30, 2023
USD ($)
|
|
Income Tax Disclosure [Abstract] | ||||||
Income tax provision | $ 53 | $ 22 | $ 96 | $ 49 | ||
Effective tax rate | 21.40% | 19.10% | 21.60% | 20.50% | ||
Assessment for tax, penalties and interest | $ 79 | kr 837 |
Earnings Per Share (Calculations for EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|||||
Basic and diluted net earnings per share: | ||||||||
Net income attributable to Xylem (in usd) | $ 194 | $ 92 | $ 347 | $ 191 | ||||
Shares | ||||||||
Weighted average common shares outstanding (in shares) | 242,538 | 205,505 | 242,182 | 192,938 | ||||
Add: Participating securities (in shares) | [1] | 34 | 34 | 31 | 29 | |||
Weighted average common shares outstanding - Basic (in shares) | 242,572 | 205,539 | 242,213 | 192,967 | ||||
Plus incremental shares from assumed conversions: | ||||||||
Weighted average common shares outstanding - Diluted (in shares) | 243,538 | 206,740 | 243,279 | 194,029 | ||||
Basic earnings per share (usd per share) | $ 0.80 | $ 0.45 | $ 1.43 | $ 0.99 | ||||
Diluted earnings per share (usd per share) | $ 0.80 | $ 0.45 | $ 1.43 | $ 0.98 | ||||
Stock options | ||||||||
Plus incremental shares from assumed conversions: | ||||||||
Dilutive effect of stock options (in shares) | [2] | 576 | 872 | 651 | 747 | |||
Restricted stock units | ||||||||
Plus incremental shares from assumed conversions: | ||||||||
Dilutive effect of stock options (in shares) | [2] | 390 | 329 | 415 | 315 | |||
|
Earnings Per Share (Summary of Antidilutive Securities) (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Stock options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 979 | 2,107 | 1,116 | 1,732 |
Restricted stock units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 452 | 606 | 440 | 469 |
Performance share units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 311 | 318 | 326 | 279 |
Inventories (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Inventories | ||
Finished goods | $ 379 | $ 355 |
Work in process | 117 | 102 |
Raw materials | 561 | 561 |
Total inventories | $ 1,057 | $ 1,018 |
Goodwill and Other Intangible Assets (Goodwill Rollforward) (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
|
Changes in the carrying value of goodwill by operating segment | ||
Beginning balance | $ 7,587 | |
Foreign currency and other | (78) | |
Ending balance | 7,509 | |
Goodwill Adjustment Due To Segment Reallocation | ||
Changes in the carrying value of goodwill by operating segment | ||
Reallocation | $ 0 | |
Goodwill Adjustment Due To Segment Reallocation, Adjusted Balance | ||
Changes in the carrying value of goodwill by operating segment | ||
Beginning balance | 7,587 | |
Water Infrastructure | ||
Changes in the carrying value of goodwill by operating segment | ||
Beginning balance | 2,434 | |
Foreign currency and other | (32) | |
Ending balance | 2,115 | |
Water Infrastructure | Goodwill Adjustment Due To Segment Reallocation | ||
Changes in the carrying value of goodwill by operating segment | ||
Reallocation | (287) | |
Water Infrastructure | Goodwill Adjustment Due To Segment Reallocation, Adjusted Balance | ||
Changes in the carrying value of goodwill by operating segment | ||
Beginning balance | 2,147 | |
Applied Water | ||
Changes in the carrying value of goodwill by operating segment | ||
Beginning balance | 895 | |
Foreign currency and other | (7) | |
Ending balance | 888 | |
Applied Water | Goodwill Adjustment Due To Segment Reallocation | ||
Changes in the carrying value of goodwill by operating segment | ||
Reallocation | 0 | |
Applied Water | Goodwill Adjustment Due To Segment Reallocation, Adjusted Balance | ||
Changes in the carrying value of goodwill by operating segment | ||
Beginning balance | 895 | |
Measurement and Control Solutions | ||
Changes in the carrying value of goodwill by operating segment | ||
Beginning balance | 1,739 | |
Foreign currency and other | (17) | |
Ending balance | 1,658 | |
Measurement and Control Solutions | Goodwill Adjustment Due To Segment Reallocation | ||
Changes in the carrying value of goodwill by operating segment | ||
Reallocation | (64) | |
Measurement and Control Solutions | Goodwill Adjustment Due To Segment Reallocation, Adjusted Balance | ||
Changes in the carrying value of goodwill by operating segment | ||
Beginning balance | 1,675 | |
Water Solutions and Services | ||
Changes in the carrying value of goodwill by operating segment | ||
Beginning balance | 2,519 | |
Foreign currency and other | (22) | |
Ending balance | 2,848 | |
Water Solutions and Services | Goodwill Adjustment Due To Segment Reallocation | ||
Changes in the carrying value of goodwill by operating segment | ||
Reallocation | $ 351 | |
Water Solutions and Services | Goodwill Adjustment Due To Segment Reallocation, Adjusted Balance | ||
Changes in the carrying value of goodwill by operating segment | ||
Beginning balance | $ 2,870 |
Goodwill and Other Intangible Assets (Summary of Intangible Assets) (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Goodwill and Other Intangible Assets | ||
Accumulated Amortization | $ (1,200) | $ (1,088) |
Other Intangibles, Carrying Amount | 3,574 | 3,617 |
Other Intangibles, Net Intangibles | 2,374 | 2,529 |
Customer and distributor relationships | ||
Goodwill and Other Intangible Assets | ||
Carrying Amount | 2,150 | 2,172 |
Accumulated Amortization | (525) | (475) |
Net Intangibles | 1,625 | 1,697 |
Proprietary technology and patents | ||
Goodwill and Other Intangible Assets | ||
Carrying Amount | 277 | 292 |
Accumulated Amortization | (146) | (141) |
Net Intangibles | 131 | 151 |
Trademarks | ||
Goodwill and Other Intangible Assets | ||
Carrying Amount | 187 | 188 |
Accumulated Amortization | (104) | (96) |
Net Intangibles | 83 | 92 |
Software | ||
Goodwill and Other Intangible Assets | ||
Carrying Amount | 598 | 598 |
Accumulated Amortization | (356) | (335) |
Net Intangibles | 242 | 263 |
Other | ||
Goodwill and Other Intangible Assets | ||
Carrying Amount | 197 | 201 |
Accumulated Amortization | (69) | (41) |
Net Intangibles | 128 | 160 |
Indefinite-lived intangibles | ||
Goodwill and Other Intangible Assets | ||
Accumulated Amortization | 0 | 0 |
Indefinite-lived intangibles | $ 165 | $ 166 |
Goodwill and Other Intangible Assets (Textual) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Finite-Lived Intangible Assets | ||||
Amortization expense related to finite-lived intangible assets | $ 83 | $ 51 | $ 156 | $ 83 |
Asset Impairment Charges | 0 | $ 0 | $ 1 | $ 2 |
Software | ||||
Finite-Lived Intangible Assets | ||||
Asset Impairment Charges | $ 2 |
Derivative Financial Instruments (Effect of Deriative Instruments on Income Statement and Statement of Comprehensive Income) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Derivative Financial Instruments | ||||
Amount of gain (loss) recognized in OCI | $ 0 | $ 3 | $ 3 | $ (1) |
Amount of gain reclassified from OCI into revenue | (2,169) | (1,722) | (4,202) | (3,170) |
Reclassification out of Accumulated Other Comprehensive Income | Foreign Exchange Contract | Cash Flow Hedges | ||||
Derivative Financial Instruments | ||||
Amount of gain reclassified from OCI into revenue | 0 | (1) | 0 | 2 |
Amount of (gain) loss reclassified from OCI into cost of revenue | (1) | 0 | 0 | 2 |
Cash Flow Hedging | Foreign Exchange Contract | Cash Flow Hedges | ||||
Derivative Financial Instruments | ||||
Amount of gain (loss) recognized in OCI | 0 | (3) | (3) | 1 |
Cash Flow Hedging | Cross Currency Swaps | ||||
Derivative Financial Instruments | ||||
Amount of gain (loss) recognized in OCI | 21 | (37) | (61) | (59) |
Interest Expense | Cash Flow Hedging | Cross Currency Swaps | ||||
Derivative Financial Instruments | ||||
Amount of gain (loss) recognized in OCI | $ 8 | $ 8 | $ 16 | $ 15 |
Derivative Financial Instruments (Balance Sheet Location of Derivative Instruments) (Details) - Derivatives designated as hedging instruments - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Prepaid and other current assets | ||
Derivatives, Fair Value | ||
Assets | $ 1 | $ 0 |
Other non-current assets | ||
Derivatives, Fair Value | ||
Assets | 40 | 9 |
Other non-current accrued liabilities | ||
Derivatives, Fair Value | ||
Liabilities | (23) | (54) |
Cash Flow Hedges | Accrued and other current liabilities | ||
Derivatives, Fair Value | ||
Liabilities | $ (4) | $ 0 |
Derivative Financial Instruments (Textual) (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2024 |
Dec. 31, 2023 |
|
Derivative [Line Items] | |||
Net losses expected to be reclassified in next 12 months | $ 4 | ||
Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Notional amount | 323 | $ 29 | |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Proceeds from Sales of Assets, Investing Activities | $ 38 | ||
Derivatives designated as hedging instruments | Sell USD Buy EUR | |||
Derivative [Line Items] | |||
Notional amount | 115 | ||
Derivatives designated as hedging instruments | Buy KR Sell EUR | |||
Derivative [Line Items] | |||
Notional amount | 96 | ||
Derivatives designated as hedging instruments | Sell GBP Buy EUR | |||
Derivative [Line Items] | |||
Notional amount | 41 | ||
Derivatives designated as hedging instruments | Buy USD Sell CNY | |||
Derivative [Line Items] | |||
Notional amount | 19 | ||
Derivatives designated as hedging instruments | Buy PLN Sell EUR | |||
Derivative [Line Items] | |||
Notional amount | 18 | ||
Derivatives designated as hedging instruments | Buy USD Sell CDN | |||
Derivative [Line Items] | |||
Notional amount | 3 | 10 | |
Derivatives designated as hedging instruments | Sell CNY Buy EUR | |||
Derivative [Line Items] | |||
Notional amount | 22 | ||
Derivatives designated as hedging instruments | Buy AUD Sell EUR | |||
Derivative [Line Items] | |||
Notional amount | 15 | ||
Derivatives designated as hedging instruments | Cross Currency Swaps | |||
Derivative [Line Items] | |||
Notional amount | 1,626 | $ 1,691 | |
Derivatives designated as hedging instruments | Sell AUD Buy EUR | |||
Derivative [Line Items] | |||
Notional amount | $ 13 |
Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Accrued and Other Current Liabilities | ||
Compensation and other employee-benefits | $ 339 | $ 403 |
Customer-related liabilities | 361 | 370 |
Accrued taxes | 120 | 170 |
Lease liabilities | 106 | 106 |
Accrued warranty costs | 43 | 45 |
Other accrued liabilities | 116 | 127 |
Total accrued and other current liabilities | 1,085 | 1,221 |
Outstanding balance under supplier finance programs | $ 250 | $ 176 |
Accrued and Other Current Liabilities (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2024
USD ($)
| |
Supplier Finance Program, Obligation [Roll Forward] | |
Confirmed obligations outstanding – January 1 | $ 176 |
Invoices confirmed | 537 |
Confirmed invoices paid | (461) |
Foreign currency and other | (2) |
Confirmed obligations outstanding – June 30 | $ 250 |
Credit Facilities and Debt (Summary of Debt Outstanding) (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
||||
---|---|---|---|---|---|---|
Credit Facilities and Long-Term Debt : | ||||||
Debt issuance costs and unamortized discount | [1] | $ (16) | $ (17) | |||
Total debt | 1,998 | 2,284 | ||||
Less: short-term borrowings and current maturities of long-term debt | 17 | 16 | ||||
Long-term debt | $ 1,981 | 2,268 | ||||
Senior Notes due 2026 | ||||||
Credit Facilities and Long-Term Debt : | ||||||
Interest rate | 3.25% | |||||
Long-term debt, fair value | $ 478 | 482 | ||||
Senior Notes due 2026 | Senior Loans | ||||||
Credit Facilities and Long-Term Debt : | ||||||
Senior Notes Due | [2] | $ 500 | 500 | |||
Senior Notes Due 2028 | ||||||
Credit Facilities and Long-Term Debt : | ||||||
Interest rate | 1.95% | |||||
Long-term debt, fair value | $ 449 | 453 | ||||
Senior Notes Due 2028 | Senior Loans | ||||||
Credit Facilities and Long-Term Debt : | ||||||
Senior Notes Due | $ 500 | 500 | ||||
Senior Notes Due 2031 | ||||||
Credit Facilities and Long-Term Debt : | ||||||
Interest rate | 2.25% | |||||
Long-term debt, fair value | $ 420 | 429 | ||||
Senior Notes Due 2031 | Senior Loans | ||||||
Credit Facilities and Long-Term Debt : | ||||||
Senior Notes Due | $ 500 | 500 | ||||
Senior Notes due 2046 | ||||||
Credit Facilities and Long-Term Debt : | ||||||
Interest rate | 4.375% | |||||
Long-term debt, fair value | $ 335 | 349 | ||||
Senior Notes due 2046 | Senior Loans | ||||||
Credit Facilities and Long-Term Debt : | ||||||
Senior Notes Due | [2] | 400 | 400 | |||
Equipment Financing | Secured Debt | ||||||
Credit Facilities and Long-Term Debt : | ||||||
Senior Notes Due | 114 | 123 | ||||
Term loan | Secured Debt | ||||||
Credit Facilities and Long-Term Debt : | ||||||
Senior Notes Due | $ 0 | $ 278 | ||||
|
Credit Facilities and Debt (Textuals) (Details) |
6 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 19, 2024
USD ($)
|
Apr. 19, 2024
EUR (€)
|
Mar. 01, 2023
USD ($)
Rate
|
Jun. 26, 2020
USD ($)
|
Sep. 20, 2011 |
Jun. 30, 2024
USD ($)
|
May 24, 2023
USD ($)
|
May 09, 2023
USD ($)
|
May 09, 2023
EUR (€)
|
Jun. 03, 2019
EUR (€)
|
Mar. 05, 2019
USD ($)
|
Jan. 26, 2018
USD ($)
|
Oct. 11, 2016
USD ($)
|
|
Evoqua Acquisition | |||||||||||||
Debt Instrument | |||||||||||||
Securitization Facility due 2024 | $ 150,000,000 | ||||||||||||
Senior Notes | |||||||||||||
Debt Instrument | |||||||||||||
Redemption price percentage | 101.00% | ||||||||||||
Line of Credit | |||||||||||||
Debt Instrument | |||||||||||||
Face amount | $ 535,000,000 | ||||||||||||
Senior Notes Due 2028 | |||||||||||||
Debt Instrument | |||||||||||||
Interest rate | 1.95% | ||||||||||||
Senior Notes Due 2028 | Senior Notes | |||||||||||||
Debt Instrument | |||||||||||||
Interest rate | 1.95% | ||||||||||||
Face amount | $ 500,000,000 | ||||||||||||
Senior Notes Due 2031 | |||||||||||||
Debt Instrument | |||||||||||||
Interest rate | 2.25% | ||||||||||||
Senior Notes Due 2031 | Senior Notes | |||||||||||||
Debt Instrument | |||||||||||||
Interest rate | 2.25% | ||||||||||||
Face amount | $ 500,000,000 | ||||||||||||
Green Bond | Senior Notes | |||||||||||||
Debt Instrument | |||||||||||||
Redemption price percentage | 101.00% | ||||||||||||
Senior Notes due 2026 | |||||||||||||
Debt Instrument | |||||||||||||
Interest rate | 3.25% | ||||||||||||
Senior Notes due 2026 | Senior Notes | |||||||||||||
Debt Instrument | |||||||||||||
Interest rate | 3.25% | ||||||||||||
Face amount | $ 500,000,000 | ||||||||||||
Senior Notes due 2046 | |||||||||||||
Debt Instrument | |||||||||||||
Interest rate | 4.375% | ||||||||||||
Senior Notes due 2046 | Senior Notes | |||||||||||||
Debt Instrument | |||||||||||||
Interest rate | 4.375% | ||||||||||||
Face amount | $ 400,000,000 | ||||||||||||
2019 Five-Year Revolving Credit Facility | Revolving Credit Facility | |||||||||||||
Debt Instrument | |||||||||||||
Term of debt | 5 years | ||||||||||||
Debt instrument aggregate principal amount | $ 1,000,000,000 | $ 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 | ||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,000,000,000 | ||||||||||||
Five Year Revolving Credit Facility 2023 | Revolving Credit Facility | |||||||||||||
Debt Instrument | |||||||||||||
Term of debt | 5 years | ||||||||||||
Debt instrument aggregate principal amount | $ 1,000,000,000 | ||||||||||||
Permitted increases in Credit Facility borrowing base | 300,000,000 | ||||||||||||
Maximum permitted increases in Credit Facility borrowing base | $ 1,300,000,000 | ||||||||||||
Maximum leverage ratio, after acquisition | Rate | 400.00% | ||||||||||||
Maximum leverage ratio, before acquisition | Rate | 350.00% | ||||||||||||
ING Bank Term Loan Facility | Line of Credit | |||||||||||||
Debt Instrument | |||||||||||||
Face amount | $ 270,000,000 | € 250,000,000 | |||||||||||
Extinguishment of Debt, Amount | $ 268,000,000 | € 250,000,000 | |||||||||||
US Dollar Commercial Paper Program | |||||||||||||
Debt Instrument | |||||||||||||
Face amount | $ 600,000,000 | ||||||||||||
Euro Commercial Paper Program | |||||||||||||
Debt Instrument | |||||||||||||
Face amount | € | € 500,000,000 |
Credit Facilities and Debt (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
May 24, 2023 |
---|---|---|---|
Gross | |||
Prepaid and other current assets | $ 234 | $ 230 | |
Net | |||
Property, plant, and equipment, net | 1,144 | 1,169 | |
Prepaid and other current assets | 234 | 230 | |
Other non-current assets | 957 | 943 | |
Total assets | 15,765 | $ 16,112 | |
Evoqua Acquisition | |||
Gross | |||
Receivables, net | $ 329 | ||
Net | |||
Receivables, net | $ 320 | ||
Equipment Financing | Asset Pledged as Collateral | Evoqua Acquisition | |||
Gross | |||
Property, plant, and equipment, net | 70 | ||
Receivables, net | 3 | ||
Prepaid and other current assets | 5 | ||
Other non-current assets | 62 | ||
Gross assets | 140 | ||
Net | |||
Property, plant, and equipment, net | 61 | ||
Receivables, net | 3 | ||
Prepaid and other current assets | 5 | ||
Other non-current assets | 62 | ||
Total assets | $ 131 |
Post-retirement Benefit Plans (Summary of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Net periodic benefit cost: | ||||
Net periodic benefit cost | $ 4 | $ 2 | $ 8 | $ 5 |
Domestic defined benefit pension plans | ||||
Net periodic benefit cost: | ||||
Service cost | 0 | 1 | 1 | 2 |
Interest cost | 1 | 1 | 2 | 2 |
Expected return on plan assets | (2) | (2) | (3) | (3) |
Amortization of net actuarial loss | 1 | 1 | ||
Net periodic benefit cost | 0 | 1 | 1 | |
International defined benefit pension plans | ||||
Net periodic benefit cost: | ||||
Service cost | 3 | 1 | 5 | 3 |
Interest cost | 4 | 4 | 8 | 8 |
Expected return on plan assets | (3) | (3) | (6) | (6) |
Amortization of net actuarial loss | 0 | 0 | (1) | |
Net periodic benefit cost | $ 4 | $ 2 | $ 7 | $ 4 |
Post-retirement Benefit Plans (Textuals) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block | ||||
Employer contribution to defined benefit plan | $ 7 | $ 9 | ||
Maximum | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block | ||||
Other postretirement benefit expense | $ 1 | $ 1 | 1 | 1 |
Amortization of net actuarial loss | 1 | $ 1 | 1 | $ 1 |
Additional contributions | 20 | 20 | ||
Minimum | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block | ||||
Additional contributions | $ 16 | $ 16 |
Equity - Summary of Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 |
Mar. 31, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Dividends declared per share (usd per share) | $ 0.36 | $ 0.36 | $ 0.33 | $ 0.33 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | $ 10,203 | $ 10,176 | $ 3,589 | $ 3,503 | $ 10,176 | $ 3,503 | ||
Net income | 194 | 153 | 92 | 99 | 347 | 191 | ||
Other comprehensive income (loss), net | 0 | (76) | (35) | 35 | ||||
Other activity | (1) | (2) | 2 | |||||
Dividends declared | (87) | (87) | (79) | (60) | ||||
Stock incentive plan activity | 39 | 39 | 62 | 10 | ||||
Ending balance | 10,348 | 10,203 | $ 10,176 | 9,910 | 3,589 | $ 3,503 | 10,348 | 9,910 |
Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 3 | 3 | 2 | 2 | 3 | 2 | ||
Ending balance | 3 | 3 | 3 | 3 | 2 | 2 | 3 | 3 |
Capital in Excess of Par Value | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 8,618 | 8,564 | 2,152 | 2,134 | 8,564 | 2,134 | ||
Stock incentive plan activity | 42 | 54 | 63 | 18 | ||||
Ending balance | 8,660 | 8,618 | 8,564 | 8,495 | 2,152 | 2,134 | 8,660 | 8,495 |
Retained Earnings | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 2,667 | 2,601 | 2,331 | 2,292 | 2,601 | 2,292 | ||
Net income | 194 | 153 | 92 | 99 | ||||
Other activity | 0 | |||||||
Dividends declared | (87) | (87) | (79) | (60) | ||||
Ending balance | 2,774 | 2,667 | 2,601 | 2,344 | 2,331 | 2,292 | 2,774 | 2,344 |
Accumulated Other Comprehensive Income (Loss) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (345) | (269) | (191) | (226) | (269) | (226) | ||
Other comprehensive income (loss), net | 0 | (76) | (35) | 35 | ||||
Ending balance | (345) | (345) | (269) | (226) | (191) | (226) | (345) | (226) |
Treasury Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (748) | (733) | (716) | (708) | (733) | (708) | ||
Stock incentive plan activity | (3) | (15) | (1) | (8) | ||||
Ending balance | (751) | (748) | (733) | (717) | (716) | (708) | (751) | (717) |
Non-Controlling Interest | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 8 | 10 | 11 | 9 | 10 | 9 | ||
Other activity | (1) | (2) | 2 | |||||
Ending balance | $ 7 | $ 8 | $ 10 | $ 11 | $ 11 | $ 9 | $ 7 | $ 11 |
Share-Based Compensation Plans (Textuals) (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
May 24, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based compensation | $ 13.0 | $ 16.0 | $ 31.0 | $ 27.0 | |
Proceeds from exercise of employee stock options | 63.0 | $ 40.0 | |||
Additional shares registered for issuance (in shares) | 2.7 | ||||
Commons tock available for future awards (in shares) | 5.3 | ||||
Total intrinsic value of options exercised | 71.0 | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Unamortized compensation expense | 8.0 | $ 8.0 | |||
Weighted average period | 2 years 1 month 6 days | ||||
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Unamortized compensation expense | 50.0 | $ 50.0 | |||
Weighted average period | 2 years 1 month 6 days | ||||
Performance share units | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Unamortized compensation expense | $ 19.0 | $ 19.0 | |||
Weighted average period | 2 years 2 months 12 days |
Share-Based Compensation Plans (Summary of Stock Options Grant) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Mar. 31, 2024 |
Jun. 30, 2024 |
Dec. 31, 2023 |
|
Summary of the changes in outstanding stock options | |||
Outstanding, beginning of period (in shares) | 2,150 | 2,150 | |
Granted (in shares) | 177 | ||
Exercised (in shares) | (1,038) | ||
Outstanding, end of period (in shares) | 1,201 | ||
Options exercisable, ending of period (in shares) | 859 | ||
Vested and expected, end of period (in shares) | 1,158 | ||
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) | $ 69.34 | $ 69.34 | |
Granted (in usd per share) | 127.94 | ||
Exercised (in usd per share) | 61.22 | ||
Outstanding, end of period (in usd per share) | 82.91 | ||
Options exercisable, end of period (in usd per share) | 71.02 | ||
Vested and expected, end of period (in usd per share) | $ 81.65 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted Average Remaining Contractual Term [Roll Forward] | |||
Outstanding, weighted average remaining contractual term | 5 years 7 months 6 days | 6 years 8 months 12 days | |
Options exercisable, end of period | 5 years 9 months 18 days | ||
Vested and expected to vest, end of period | 6 years 1 month 6 days | ||
Aggregate intrinsic value, outstanding | $ 63 | $ 97 | |
Aggregate intrinsic value, exercisable | 55 | ||
Aggregate intrinsic value, vested and expected to vest | $ 62 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 88 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 97.75 |
Share-Based Compensation Plans (Stock Option Fair Value Assumptions) (Details) - Stock options |
6 Months Ended |
---|---|
Jun. 30, 2024
$ / shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility | 26.70% |
Risk-free interest rate | 4.18% |
Dividend yield | 1.13% |
Expected term (in years) | 5 years 8 months 12 days |
Weighted-average fair value / share (in usd per share) | $ 37.82 |
Share-Based Compensation Plans (Summary of Restricted Stock Unit Grants) (Details) - Restricted stock units shares in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2024
$ / shares
shares
| |
Shares | |
Outstanding, beginning of period (in shares) | shares | 862 |
Granted (in shares) | shares | 271 |
Vested (in shares) | shares | (398) |
Forfeited (in shares) | shares | (52) |
Outstanding, end of period (in shares) | shares | 683 |
Weighted Average Grant Date Fair Value Per Share | |
Outstanding, beginning of period (in usd per share) | $ / shares | $ 98.49 |
Granted (in usd per share) | $ / shares | 128.80 |
Vested (in usd per share) | $ / shares | 77.54 |
Forfeited (in usd per share) | $ / shares | 100.84 |
Outstanding, end of period (in usd per share) | $ / shares | $ 110.32 |
Share-Based Compensation Plans Share-Based Compensation Plans (Summary of ROIC Performance Share Unit Grants) (Details) - Return on Invested Capital Performance-Based Shares - Performance share units shares in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2024
$ / shares
shares
| |
Summary of performance share activity | |
Outstanding, beginning of period (in shares) | shares | 114 |
Granted (in shares) | shares | 26 |
Adjustment for Condition Achieved (in shares) | shares | 16 |
Vested (in shares) | shares | (64) |
Forfeited (in shares) | shares | (14) |
Outstanding, end of period (in shares) | shares | 78 |
Weighted Average Grant Date Fair Value Per Share | |
Outstanding, beginning of period (in usd per share) | $ / shares | $ 97.70 |
Granted (in usd per share) | $ / shares | 127.94 |
Adjustment for Condition Achieved (in usd per share) | $ / shares | 102.51 |
Vested (in usd per share) | $ / shares | 102.51 |
Forfeited (in usd per share) | $ / shares | 96.31 |
Outstanding, end of period (in usd per share) | $ / shares | $ 105.11 |
Share-Based Compensation Plans (Summary of Performance-Based Share Grants) (Details) - Total Shareholder Return Performance-Based Shares - Performance share units shares in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2024
$ / shares
shares
| |
Summary of performance share activity | |
Outstanding, beginning of period (in shares) | shares | 180 |
Granted (in shares) | shares | 52 |
Adjustment for Condition Achieved (in shares) | shares | (9) |
Vested (in shares) | shares | (39) |
Forfeited (in shares) | shares | (28) |
Outstanding, end of period (in shares) | shares | 156 |
Weighted Average Grant Date Fair Value Per Share | |
Outstanding, beginning of period (in usd per share) | $ / shares | $ 103.52 |
Granted (in usd per share) | $ / shares | 181.80 |
Adjustment for Condition Achieved (in usd per share) | $ / shares | 117.67 |
Vested (in usd per share) | $ / shares | 117.67 |
Forfeited (in usd per share) | $ / shares | 102.69 |
Outstanding, end of period (in usd per share) | $ / shares | $ 125.63 |
Share-Based Compensation Plans (TSR Performance-Based Shares Fair Value Assumptions) (Details) - Total Shareholder Return Performance-Based Shares - Performance share units |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility | 27.20% |
Risk-free interest rate | 4.33% |
Share-Based Compensation Plans - Summary of REV Performance Share Unit Grants (Details) - REV Performance Shares shares in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2024
$ / shares
shares
| |
Shares | |
Outstanding, beginning of period (in shares) | shares | 66 |
Shares Awarded (in shares) | shares | 26 |
Forfeited | shares | (14) |
Outstanding, end of period (in shares) | shares | 78 |
Weighted Average Grant Date Fair Value Per Share | |
Outstanding, beginning of period (in usd per share) | $ / shares | $ 94.19 |
Granted (in usd per share) | $ / shares | 127.94 |
Forfeited | $ / shares | 96.31 |
Outstanding, end of period (in usd per share) | $ / shares | $ 62.69 |
Capital Stock (Textuals) (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Aug. 24, 2015 |
|
Share Repurchase Programs | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased (in shares) (less than) | 0.1 | 0.1 | 0.1 | 0.1 | |
Shares repurchased | $ 3.0 | $ 1.0 | $ 18.0 | $ 9.0 | |
2015 Stock Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 500.0 | ||||
Remaining authorized amount of repurchase | $ 182.0 | $ 182.0 | |||
Settlement of Employee Tax Withholding Obligations | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased (in shares) (less than) | 0.1 | 0.1 | 0.1 | 0.1 | |
Shares repurchased | $ 3.0 | $ 1.0 | $ 18.0 | $ 9.0 |
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2024 |
Mar. 31, 2024 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | $ (269) | $ (269) | ||||
Foreign currency translation adjustment | $ 6 | $ (38) | (59) | $ (16) | ||
Foreign currency translation adjustment | 0 | (1) | 2 | (1) | ||
Ending balance | (345) | (345) | ||||
Foreign Currency Translation | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | (271) | (196) | (153) | $ (180) | (196) | (180) |
Foreign currency translation adjustment | 6 | (65) | (38) | 22 | ||
Tax on foreign currency translation adjustment | (5) | (10) | 9 | 5 | ||
Ending balance | (270) | (271) | (182) | (153) | (270) | (182) |
Post-retirement Benefit Plans | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | (71) | (72) | (41) | (41) | (72) | (41) |
Income tax impact on amortization of post-retirement benefit plan items | 0 | (1) | 1 | |||
Foreign currency translation adjustment | 2 | |||||
Foreign currency translation adjustment for post-retirement benefit plans | (1) | |||||
Ending balance | (71) | (71) | (43) | (41) | (71) | (43) |
Derivative Instruments | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | (3) | (1) | 3 | (5) | (1) | (5) |
Unrealized loss on derivative hedge agreements | (3) | (3) | 4 | |||
Income tax benefit on unrealized gain on derivative hedge agreements | (1) | |||||
Ending balance | (4) | (3) | (1) | 3 | (4) | (1) |
Total | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | (345) | (269) | (191) | (226) | (269) | (226) |
Foreign currency translation adjustment | 6 | (65) | (38) | 22 | ||
Tax on foreign currency translation adjustment | (5) | (10) | 9 | 5 | ||
Income tax impact on amortization of post-retirement benefit plan items | 0 | (1) | 1 | |||
Foreign currency translation adjustment | 2 | |||||
Foreign currency translation adjustment for post-retirement benefit plans | (1) | |||||
Unrealized loss on derivative hedge agreements | (3) | (3) | 4 | |||
Income tax benefit on unrealized gain on derivative hedge agreements | (1) | |||||
Ending balance | (345) | (345) | (226) | (191) | $ (345) | $ (226) |
Other non-operating income | Post-retirement Benefit Plans | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Amortization of actuarial gain on post-retirement benefit plans into other non-operating income, net | (1) | (1) | ||||
Other non-operating income | Total | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Amortization of actuarial gain on post-retirement benefit plans into other non-operating income, net | (1) | (1) | ||||
Revenue | Derivative Instruments | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Reclassification of unrealized gain (loss) on foreign exchange agreements | (1) | 3 | ||||
Revenue | Total | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Reclassification of unrealized gain (loss) on foreign exchange agreements | $ (1) | 3 | ||||
Cost of Revenue | Derivative Instruments | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Reclassification of unrealized gain (loss) on foreign exchange agreements | 1 | 2 | ||||
Reclassification of unrealized gain on foreign exchange agreements into cost of revenue | (1) | |||||
Cost of Revenue | Total | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Reclassification of unrealized gain (loss) on foreign exchange agreements | $ 1 | $ 2 | ||||
Reclassification of unrealized gain on foreign exchange agreements into cost of revenue | $ (1) |
Commitments and Contingencies (Summary of Warranties) (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Warranties | ||
Warranty accrual – January 1 | $ 63 | $ 54 |
Net charges for product warranties in the period | 17 | 13 |
Net Evoqua additions from acquisition | 0 | 10 |
Settlement of warranty claims | (18) | (13) |
Warranty accrual – June 30 | $ 62 | $ 64 |
Commitments and Contingencies (Textual) (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Legal contingency accrual | $ 6 | $ 18 |
Guarantee amounts | 733 | $ 729 |
Estimated environmental matters | $ 4 |
Segment Information (Textuals) (Details) |
6 Months Ended |
---|---|
Jun. 30, 2024
Segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment Information (Summary of Operations by Segment) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|||
Financial information for each reportable segment | ||||||
Revenues | $ 2,169 | $ 1,722 | $ 4,202 | $ 3,170 | ||
Operating income | 253 | 119 | 462 | 250 | ||
Interest Expense | 11 | 12 | 25 | 21 | ||
Other non-operating income | 4 | 7 | 10 | 11 | ||
Gain/(Loss) on sale of businesses | 1 | 0 | (4) | 0 | ||
Income before taxes | 247 | 114 | 443 | 240 | ||
Depreciation and amortization | 145 | 92 | 279 | 152 | ||
Capital expenditures | 73 | 53 | 147 | 103 | ||
Regional selling locations | ||||||
Financial information for each reportable segment | ||||||
Capital expenditures | [1] | 5 | 5 | 11 | 11 | |
Corporate and other | ||||||
Financial information for each reportable segment | ||||||
Operating income | (22) | (90) | (54) | (132) | ||
Depreciation and amortization | 3 | 2 | 6 | 4 | ||
Capital expenditures | 4 | 3 | 8 | 7 | ||
Water Infrastructure | Operating Segments | ||||||
Financial information for each reportable segment | ||||||
Revenues | 631 | 519 | 1,205 | 929 | ||
Operating income | 78 | 70 | 138 | 116 | ||
Depreciation and amortization | 37 | 18 | 68 | 27 | ||
Capital expenditures | 9 | 7 | 17 | 15 | ||
Applied Water | Operating Segments | ||||||
Financial information for each reportable segment | ||||||
Revenues | 456 | 478 | 892 | 931 | ||
Operating income | 71 | 84 | 132 | 167 | ||
Depreciation and amortization | 7 | 7 | 14 | 13 | ||
Capital expenditures | 3 | 7 | 8 | 15 | ||
Measurement and Control Solutions | Operating Segments | ||||||
Financial information for each reportable segment | ||||||
Revenues | 482 | 384 | 944 | 762 | ||
Operating income | 79 | 29 | 149 | 55 | ||
Depreciation and amortization | 32 | 31 | 65 | 61 | ||
Capital expenditures | 19 | 13 | 37 | 30 | ||
Water Solutions and Services | Operating Segments | ||||||
Financial information for each reportable segment | ||||||
Revenues | 600 | 341 | 1,161 | 548 | ||
Operating income | 47 | 26 | 97 | 44 | ||
Depreciation and amortization | 66 | 34 | 126 | 47 | ||
Capital expenditures | $ 33 | $ 18 | $ 66 | $ 25 | ||
|
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