Segment Information

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

Our business has two reportable segments: Water Infrastructure and Applied Water. The Water Infrastructure segment, focuses on the transportation, treatment and testing of water, offering a range of products including water and wastewater pumps, treatment and testing equipment, and controls and systems. The Applied Water segment encompasses the uses of water and focuses on the residential, commercial, industrial and agricultural markets offering a wide range of products, including pumps, valves and heat exchangers.

Additionally, we have Regional selling locations which consist primarily of selling and marketing organizations and related support that offer products and services across both of our reportable segments. Corporate and other consists of corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs, as well as charges related to certain matters, such as environmental matters that are managed at a corporate level and are not included in the business segments in evaluating performance or allocating resources.

The accounting policies of each segment are the same as those described in the summary of significant accounting policies (see Note 1 in the 2014 Annual Report). The following tables contain financial information for each reportable segment.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in millions)	2015			2014			2015			2014
Revenue:
Water Infrastructure	$	551		$	616		$	1,051		$	1,168
Applied Water	369			389			706			743
Total	$	920		$	1,005		$	1,757		$	1,911
Operating Income:
Water Infrastructure	$	65		$	76		$	112		$	122
Applied Water	51			53			97			94
Corporate and other	(12		)	(13		)	(22		)	(24		)
Total	$	104		$	116		$	187		$	192
Depreciation and Amortization:
Water Infrastructure	$	23		$	25		$	48		$	50
Applied Water	6			7			12			13
Regional selling locations (a)	3			3			5			6
Corporate and other	2			1			4			3
Total	$	34		$	36		$	69		$	72
Capital Expenditures:
Water Infrastructure	$	12		$	14		$	37		$	27
Applied Water	3			5			10			10
Regional selling locations (b)	4			2			6			4
Corporate and other	1			2			4			7
Total	$	20		$	23		$	57		$	48

(a) Depreciation and amortization expense incurred by the Regional selling locations was included in an overall allocation of Regional selling location costs to the segments; however, a certain portion of that expense was not specifically identified to a segment. That expense is captured in this Regional selling location line.

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

The following table contains the total assets for each reportable segment.

	Total Assets
(in millions)	June 30, 2015		December 31, 2014
Water Infrastructure	$	2,073	$	2,128
Applied Water	1,113		1,114
Regional selling location (a)	929		961
Corporate and other (b)	604		657
Total	$	4,719	$	4,860

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

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