Segment and Geographic Data

12 Months Ended

Dec. 31, 2016

Segment Reporting Information [Line Items]

Segment and Geographic Data

Segment and Geographic Data

Our business has three reportable segments: Water Infrastructure, Applied Water and Sensus. 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. The Sensus segment develops advanced technology solutions that enable intelligent use and conservation of critical water and energy resources. Our Regional selling locations consist primarily of selling and marketing organizations and related support 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 (see Note 1). The following tables contain financial information for each reportable segment:

	Year Ended December 31,
(in millions)	2016			2015			2014
Revenue:
Water Infrastructure	$	2,246		$	2,231		$	2,442
Applied Water	1,393			1,422			1,474
Sensus	132			—			—
Total	$	3,771		$	3,653		$	3,916
Operating income:
Water Infrastructure	$	308		$	303		$	321
Applied Water	188			190			193
Sensus	(17		)	—			—
Corporate and other	(73		)	(44		)	(51		)
Total operating income	406			449			463
Interest expense	70			55			54
Other non-operating income (expense)	4			—			1
Gain from sale of businesses	—			9			11
Income before taxes	$	340		$	403		$	421
Depreciation and amortization:
Water Infrastructure	$	86		$	88		$	100
Applied Water	24			26			25
Sensus	21			—			—
Regional selling locations (a)	12			12			12
Corporate and other	8			7			5
Total	$	151		$	133		$	142
Capital expenditures:
Water Infrastructure	$	67		$	67		$	73
Applied Water	21			22			28
Sensus	7			—			—
Regional selling locations (b)	25			23			10
Corporate and other	4			5			8
Total	$	124		$	117		$	119

(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 is the expense 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 illustrates revenue by product category, net of intercompany revenue.

	Year Ended December 31,
(in millions)	2016		2015		2014
Pumps, accessories, parts and service	$	2,888	$	2,917	$	3,094
Other (a)	883		736		822
Total	$	3,771	$	3,653	$	3,916

(a) Other includes treatment equipment, analytical instrumentation, heat exchangers, valves, controls and smart meters.

The following table contains the total assets for each reportable segment as of December 31, 2016, 2015 and 2014.

	Total Assets
(in millions)	2016		2015		2014
Water Infrastructure	$	1,997	$	2,024	$	2,128
Applied Water	990		1,054		1,114
Sensus	2,284		—		—
Regional selling locations (a)	965		905		961
Corporate and other (b)	238		674		630
Total	$	6,474	$	4,657	$	4,833

(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 plant and equipment.

Geographical Information

Revenue is attributed to countries based upon the location of the customer. Property, Plant & Equipment is attributed to countries based upon the location of the assets.

	Revenue
	Year Ended December 31,
(in millions)	2016		2015		2014
United States	$	1,574	$	1,490	$	1,477
Europe	1,195		1,179		1,379
Asia Pacific	518		482		478
Other	484		502		582
Total	$	3,771	$	3,653	$	3,916

	Property, Plant & Equipment
	December 31,
(in millions)	2016		2015		2014
United States	$	255	$	168	$	180
Europe	237		189		206
Asia Pacific	87		56		53
Other	37		26		22
Total	$	616	$	439	$	461