Capital Stock (Notes)

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Capital Stock

Capital Stock

The Company has the authority to issue an aggregate of 750 million shares of Common Stock having a par value of $0.01 per share. The stockholders of Xylem common stock are entitled to receive dividends as declared by the Xylem Board of Directors. Dividends declared were $0.4656, $0.4048 and $0.1012 during 2013, 2012 and 2011, respectively.

The changes in common stock outstanding for the three years ended December 31 are as follows:

(in thousands of shares)	2013		2012		2011
Beginning Balance, January 1	185,658		184,641		—
Conversion of net investment	—		—		184,578
Stock incentive plan activity	1,203		1,367		63
Repurchase of common stock	(2,304	)	(350	)	—
Ending Balance, December 31	184,557		185,658		184,641

On August 20, 2013, the Board of Directors authorized the repurchase up to $250 million in shares with no expiration date. The program's objective is to deploy our capital in a manner that benefits our shareholders and maintains our focus on growth. During 2013, we repurchased 1.7 million shares for $50 million under this program. There are up to $200 million in shares that may still be purchased under this plan.

On August 18, 2012, the Board of Directors authorized the repurchase of up to 2.0 million shares of common stock with no expiration date. The program's objective is to offset dilution associated with various Xylem employee stock plans by acquiring shares in the open market from time to time. We repurchased 0.6 million and 0.4 million shares for $17 million and $9 million under this program during 2013 and 2012, respectively. There are up to 1.0 million shares that may still be purchased under this plan.

Aside from the aforementioned repurchase programs, we repurchased 0.2 million and 0.1 million shares for $6 million and $4 million during 2013 and 2012, respectively in relation to settlement of employee tax withholding obligations due as a result of the vesting of restricted stock.