Xylem Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - February 4, 2015

Attached files

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8-K - 8-K - Xylem Inc.	form8-k.htm

Exhibit 99.1

XYLEM INC.

RECAST ORDERS, REVENUE, OPERATING INCOME AND ADJUSTED OPERATING INCOME BY SEGMENT

($ MILLIONS)



				Year Ended					Year Ended					Nine Months Ended
				December 31, 2012					December 31, 2013					September 30, 2014
				As Previously Reported		As Recast			As Previously Reported		As Recast			As Previously Reported		As Recast
Orders
	Water Infrastructure			2,421		2,364			2,510		2,443			1,973		1,915
	Applied Water			1,423		1,418			1,468		1,469			1,135		1,136
	Eliminations			(62	)	—			(66	)	—			(57	)	—
		Total		3,782		3,782			3,912		3,912			3,051		3,051

Revenue
	Water Infrastructure			2,425		2,349			2,457		2,384			1,823		1,770
	Applied Water			1,424		1,442			1,444		1,453			1,105		1,104
	Eliminations			(58	)	—			(64	)	—			(54	)	—
		Total		3,791		3,791			3,837		3,837			2,874		2,874

Operating Income
	Water Infrastructure			342		334			271		263			217		217
	Applied Water			170		178			167		175			145		145
	Corp and Other			(69	)	(69	)		(75	)	(75	)		(40	)	(40	)
		Total		443		443			363		363			322		322

Adjustments (a)
	Water Infrastructure			23		23			52		52			20		20
	Applied Water			7		7			16		16			11		11
	Corp and Other			16		16			20		20			—		—
		Total		46		46			88		88			31		31

Adjusted Operating Income
	Water Infrastructure			365		357			323		315			237		237
	Applied Water			177		185			183		191			156		156
	Corp and Other			(53	)	(53	)		(55	)	(55	)		(40	)	(40	)
		Total		489		489			451		451			353		353


(a)	Adjustments consist of restructuring and realignment costs in all years, special charges in 2013 and separation costs in 2012.

1

XYLEM INC.

RECAST ORDERS, REVENUE, OPERATING INCOME AND ADJUSTED OPERATING INCOME BY SEGMENT 2013 QUARTER TO DATE

($ MILLIONS)



				1Q 2013					2Q 2013					3Q 2013					4Q 2013
				As Previously Reported		As Recast			As Previously Reported		As Recast			As Previously Reported		As Recast			As Previously Reported		As Recast
Orders
	Water Infrastructure			601		583			647		629			617		601			645		630
	Applied Water			378		379			378		380			355		354			357		356
	Eliminations			(17	)	—			(16	)	—			(17	)	—			(16	)	—
		Total		962		962			1,009		1,009			955		955			986		986

Revenue
	Water Infrastructure			551		532			596		577			619		602			691		673
	Applied Water			345		347			381		383			360		363			358		360
	Eliminations			(17	)	—			(17	)	—			(14	)	—			(16	)	—
		Total		879		879			960		960			965		965			1,033		1,033

Operating Income
	Water Infrastructure			42		39			41		40			88		85			100		99
	Applied Water			40		43			45		46			40		43			42		43
	Corp and Other			(16	)	(16	)		(16	)	(16	)		(30	)	(30	)		(13	)	(13	)
		Total		66		66			70		70			98		98			129		129

Adjustments (a)
	Water Infrastructure			10		10			22		22			8		8			12		12
	Applied Water			2		2			6		6			4		4			4		4
	Corp and Other			—		—			—		—			20		20			—		—
		Total		12		12			28		28			32		32			16		16

Adjusted Operating Income
	Water Infrastructure			52		49			63		62			96		93			112		111
	Applied Water			42		45			51		52			44		47			46		47
	Corp and Other			(16	)	(16	)		(16	)	(16	)		(10	)	(10	)		(13	)	(13	)
		Total		78		78			98		98			130		130			145		145


(a)	Adjustments consist of restructuring and realignment costs and special charges.

2

XYLEM INC.

RECAST ORDERS, REVENUE, OPERATING INCOME AND ADJUSTED OPERATING INCOME BY SEGMENT 2014 QUARTER TO DATE

($ MILLIONS)



				1Q 2014					2Q 2014					3Q 2014
				As Previously Reported		As Recast			As Previously Reported		As Recast			As Previously Reported		As Recast
Orders
	Water Infrastructure			619		597			674		654			680		664
	Applied Water			394		396			378		377			363		363
	Eliminations			(20	)	—			(21	)	—			(16	)	—
		Total		993		993			1,031		1,031			1,027		1,027

Revenue
	Water Infrastructure			568		552			636		616			619		602
	Applied Water			355		354			388		389			362		361
	Eliminations			(17	)	—			(19	)	—			(18	)	—
		Total		906		906			1,005		1,005			963		963

Operating Income
	Water Infrastructure			46		46			77		76			94		95
	Applied Water			41		41			52		53			52		51
	Corp and Other			(11	)	(11	)		(13	)	(13	)		(16	)	(16	)
		Total		76		76			116		116			130		130

Adjustments (a)
	Water Infrastructure			12		12			5		5			3		3
	Applied Water			6		6			4		4			1		1
	Corp and Other			—		—			—		—			—		—
		Total		18		18			9		9			4		4

Adjusted Operating Income
	Water Infrastructure			58		58			82		81			97		98
	Applied Water			47		47			56		57			53		52
	Corp and Other			(11	)	(11	)		(13	)	(13	)		(16	)	(16	)
		Total		94		94			125		125			134		134


(a)	Adjustments consist of restructuring and realignment costs.

3

Xylem Inc. Non-GAAP Reconciliation

Recast - Reported vs. Organic & Constant Currency Order Growth

($ Millions)



	(As Reported - GAAP)												(As Adjusted - Organic)												Constant Currency
				(A)			(B)						(C)			(D)			(E) = B+C+D			(F) = E/A			(G) = (E - C) / A

							Change			% Change									Change			% Change
	Orders			Orders			2014 v. 2013			2014 v. 2013			Acquisitions / Divestitures			FX Contribution			Adj. 2014 v. 2013			Adj. 2014 v. 2013
	2014			2013
Nine Months Ended September 30

Xylem Inc.	3,051			2,926			125			4	%		(3	)		(3	)		119			4	%		4	%

Water Infrastructure	1,915			1,813			102			6	%		(8	)		5			99			5	%		6	%
Applied Water	1,136			1,113			23			2	%		5			(8	)		20			2	%		1	%

Quarter Ended September 30

Xylem Inc.	1,027			955			72			8	%		5			2			79			8	%		8	%

Water Infrastructure	664			601			63			10	%		—			—			63			10	%		10	%
Applied Water	363			354			9			3	%		5			2			16			5	%		3	%

Quarter Ended June 30

Xylem Inc.	1,031			1,009			22			2	%		(1	)		(8	)		13			1	%		1	%

Water Infrastructure	654			629			25			4	%		(1	)		1			25			4	%		4	%
Applied Water	377			380			(3	)		(1	)%		—			(8	)		(11	)		(3	)%		(3	)%

Quarter Ended March 31

Xylem Inc.	993			962			31			3	%		(7	)		3			27			3	%		4	%

Water Infrastructure	597			583			14			2	%		(7	)		4			11			2	%		3	%
Applied Water	396			379			17			4	%		—			(2	)		15			4	%		4	%

4

Xylem Inc. Non-GAAP Reconciliation

Recast - Reported vs. Organic & Constant Currency Order Growth

($ Millions)



	(As Reported - GAAP)												(As Adjusted - Organic)												Constant Currency
				(A)			(B)						(C)			(D)			(E) = B+C+D			(F) = E/A			(G) = (E - C) / A

							Change			% Change									Change			% Change
	Orders			Orders			2013 v. 2012			2013 v. 2012			Acquisitions / Divestitures			FX Contribution			Adj. 2013 v. 2012			Adj. 2013 v. 2012
	2013			2012 *
Year Ended December 31

Xylem Inc.	3,912			3,782			130			3	%		(87	)		—			43			1	%		3	%

Water Infrastructure	2,443			2,364			79			3	%		(87	)		6			(2	)		—	%		4	%
Applied Water	1,469			1,418			51			4	%		—			(6	)		45			3	%		3	%

Quarter Ended December 31

Xylem Inc.	986			926			60			6	%		(16	)		(1	)		43			5	%		6	%

Water Infrastructure	630			591			39			7	%		(16	)		2			25			4	%		7	%
Applied Water	356			335			21			6	%		—			(3	)		18			5	%		5	%

Quarter Ended September 30

Xylem Inc.	955			882			73			8	%		(20	)		1			54			6	%		8	%

Water Infrastructure	601			549			52			9	%		(20	)		3			35			6	%		10	%
Applied Water	354			333			21			6	%		—			(2	)		19			6	%		6	%

Quarter Ended June 30

Xylem Inc.	1,009			970			39			4	%		(25	)		(2	)		12			1	%		4	%

Water Infrastructure	629			602			27			4	%		(25	)		(1	)		1			—	%		4	%
Applied Water	380			368			12			3	%		—			(1	)		11			3	%		3	%

Quarter Ended March 31

Xylem Inc.	962			1,004			(42	)		(4	)%		(26	)		2			(66	)		(7	)%		(4	)%

Water Infrastructure	583			622			(39	)		(6	)%		(26	)		2			(63	)		(10	)%		(6	)%
Applied Water	379			382			(3	)		(1	)%		—			—			(3	)		(1	)%		(1	)%

* 2012 quarterly orders are on the same recast basis as the full year 2012 and 2013 orders.

5

Xylem Inc. Non-GAAP Reconciliation

Recast - Reported vs. Organic & Constant Currency Revenue Growth

($ Millions)



	(As Reported - GAAP)												(As Adjusted - Organic)												Constant Currency
				(A)			(B)						(C)			(D)			(E) = B+C+D			(F) = E/A			(G) = (E - C) / A

							Change			% Change									Change			% Change
	Revenue			Revenue			2014 v. 2013			2014 v. 2013			Acquisitions / Divestitures			FX Contribution			Adj. 2014 v. 2013			Adj. 2014 v. 2013
	2014			2013
Nine Months Ended September 30

Xylem Inc.	2,874			2,804			70			2	%		1			(1	)		70			2	%		2	%

Water Infrastructure	1,770			1,711			59			3	%		(6	)		8			61			4	%		4	%
Applied Water	1,104			1,093			11			1	%		7			(9	)		9			1	%		—	%

Quarter Ended September 30

Xylem Inc.	963			965			(2	)		—	%		7			2			7			1	%		—	%

Water Infrastructure	602			602			—			—	%		—			1			1			—	%		—	%
Applied Water	361			363			(2	)		(1	)%		7			—			5			1	%		(1	)%

Quarter Ended June 30

Xylem Inc.	1,005			960			45			5	%		(1	)		(7	)		37			4	%		4	%

Water Infrastructure	616			577			39			7	%		(1	)		2			40			7	%		7	%
Applied Water	389			383			6			2	%		—			(7	)		(1	)		—	%		—	%

Quarter Ended March 31

Xylem Inc.	906			879			27			3	%		(5	)		4			26			3	%		4	%

Water Infrastructure	552			532			20			4	%		(5	)		5			20			4	%		5	%
Applied Water	354			347			7			2	%		—			(2	)		5			1	%		1	%

6

Xylem Inc. Non-GAAP Reconciliation

Recast - Reported vs. Organic & Constant Currency Revenue Growth

($ Millions)



	(As Reported - GAAP)												(As Adjusted - Organic)												Constant Currency
				(A)			(B)						(C)			(D)			(E) = B+C+D			(F) = E/A			(G) = (E - C) / A

							Change			% Change									Change			% Change
	Revenue			Revenue			2013 v. 2012			2013 v. 2012			Acquisitions / Divestitures			FX Contribution			Adj. 2013 v. 2012			Adj. 2013 v. 2012
	2013			2012 *
Year Ended December 31

Xylem Inc.	3,837			3,791			46			1	%		(82	)		(3	)		(39	)		(1	)%		1	%

Water Infrastructure	2,384			2,349			35			1	%		(82	)		4			(43	)		(2	)%		2	%
Applied Water	1,453			1,442			11			1	%		—			(7	)		4			—	%		—	%

Quarter Ended December 31

Xylem Inc.	1,033			969			64			7	%		(15	)		(1	)		48			5	%		7	%

Water Infrastructure	673			620			53			9	%		(15	)		2			40			6	%		9	%
Applied Water	360			349			11			3	%		—			(3	)		8			2	%		2	%

Quarter Ended September 30

Xylem Inc.	965			931			34			4	%		(21	)		—			13			1	%		4	%

Water Infrastructure	602			576			26			5	%		(21	)		3			8			1	%		5	%
Applied Water	363			355			8			2	%		—			(3	)		5			1	%		1	%

Quarter Ended June 30

Xylem Inc.	960			966			(6	)		(1	)%		(23	)		(4	)		(33	)		(3	)%		(1	)%

Water Infrastructure	577			587			(10	)		(2	)%		(23	)		(3	)		(36	)		(6	)%		(2	)%
Applied Water	383			379			4			1	%		—			(1	)		3			1	%		1	%

Quarter Ended March 31

Xylem Inc.	879			925			(46	)		(5	)%		(23	)		2			(67	)		(7	)%		(5	)%

Water Infrastructure	532			566			(34	)		(6	)%		(23	)		2			(55	)		(10	)%		(6	)%
Applied Water	347			359			(12	)		(3	)%		—			—			(12	)		(3	)%		(3	)%

* 2012 quarterly revenue is on the same recast basis as the full year 2012 and 2013 revenue.

7