XML 62 R47.htm IDEA: XBRL DOCUMENT
v3.22.4

Postretirement Benefit Plans (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2022
Retirement Benefits [Abstract] |
Defined benefit contributions by employer | Matching obligations, the majority of which were funded in cash in connection with the plans, and other company contributions are as follows:
(in millions) | Defined Contribution
2022 | $ | 53 |
2021 | 60 |
2020 | 56 |
Summary of amounts recorded within accumulated other comprehensive income | The following table provides a summary of the funded status of our Post-retirement Plans, the presentation of such balances and a summary of amounts recorded within AOCL:
(in millions) | December 31, 2022 |  | December 31, 2021
| Pension |  | Other |  | Total |  | Pension |  | Other |  | Total
Fair value of plan assets | $ | 246 |  |  | $ | — |  |  | $ | 246 |  |  | $ | 679 |  |  | $ | — |  |  | $ | 679 |
Projected benefit obligation | (482) |  |  | (31) |  |  | (513) |  |  | (1,043) |  |  | (42) |  |  | (1,085) |
Funded status | $ | (236) |  |  | $ | (31) |  |  | $ | (267) |  |  | $ | (364) |  |  | $ | (42) |  |  | $ | (406) |
Amounts recognized in the balance sheet |  |  |  |  |  |  |  |  |  |  |
Other non-current assets | $ | 34 |  |  | $ | — |  |  | $ | 34 |  |  | $ | 48 |  |  | $ | — |  |  | $ | 48 |
Accrued and other current liabilities | (12) |  |  | (3) |  |  | (15) |  |  | (13) |  |  | (3) |  |  | (16) |
Accrued post-retirement benefit obligations | (258) |  |  | (28) |  |  | (286) |  |  | (399) |  |  | (39) |  |  | (438) |
Net amount recognized | $ | (236) |  |  | $ | (31) |  |  | $ | (267) |  |  | $ | (364) |  |  | $ | (42) |  |  | $ | (406) |
Accumulated other comprehensive loss: |  |  |  |  |  |  |  |  |  |  |
Net actuarial losses | $ | (50) |  |  | $ | (6) |  |  | $ | (56) |  |  | $ | (326) |  |  | $ | (17) |  |  | $ | (343) |
Prior service credit | (1) |  |  | 4 |  |  | 3 |  |  | (4) |  |  | 7 |  |  | 3 |
Total | $ | (51) |  |  | $ | (2) |  |  | $ | (53) |  |  | $ | (330) |  |  | $ | (10) |  |  | $ | (340) |
Schedule of Net Benefit Costs | The components of net periodic benefit cost for our defined benefit pension plans are as follows:
| Year Ended December 31,
(in millions) | 2022 |  | 2021 |  | 2020
Domestic defined benefit pension plans: |  |  |  |  |
Service cost | $ | 3 |  |  | $ | 3 |  |  | $ | 3 |
Interest cost | 3 |  |  | 3 |  |  | 3 |
Expected return on plan assets | (6) |  |  | (7) |  |  | (7) |
Amortization of net actuarial loss | 3 |  |  | 4 |  |  | 3 |
Net periodic benefit cost | $ | 3 |  |  | $ | 3 |  |  | $ | 2 |
International defined benefit pension plans: |  |  |  |  |
Service cost | $ | 12 |  |  | $ | 14 |  |  | $ | 13 |
Interest cost | 13 |  |  | 11 |  |  | 16 |
Expected return on plan assets | (13) |  |  | (14) |  |  | (14) |
Amortization of net actuarial loss | 10 |  |  | 17 |  |  | 14 |
U.K. pension settlement expense | 140 |  |  | — |  |  | — |
Net periodic benefit cost | $ | 162 |  |  | $ | 28 |  |  | $ | 29 |
Total net periodic benefit cost | $ | 165 |  |  | $ | 31 |  |  | $ | 31 |
The components of net periodic benefit cost for other post-retirement employee benefit plans are as follows:
| Year Ended December 31,
(in millions) | 2022 |  | 2021 |  | 2020
Interest cost | 1 |  |  | 1 |  |  | 2 |
Amortization of prior service credit | (2) |  |  | (2) |  |  | (3) |
Amortization of net actuarial loss | 1 |  |  | 2 |  |  | 2 |
Net periodic benefit cost | $ | — |  |  | $ | 1 |  |  | $ | 1 |
Schedule of Changes in Accumulated Postemployment Benefit Obligations | Other changes in benefit obligations recognized in other comprehensive income (loss), as they pertain to other post-retirement employee benefit plans are as follows:
| Year Ended December 31,
(in millions) | 2022 |  | 2021 |  | 2020
Net loss (gain) | $ | (9) |  |  | $ | — |  |  | $ | 1 |
Prior service credit | — |  |  | — |  |  | (5) |
Amortization of prior service credit | 2 |  |  | 3 |  |  | 3 |
Amortization of net actuarial loss | (1) |  |  | (2) |  |  | (2) |
Losses (gains) recognized in other comprehensive income (loss) | $ | (8) |  |  | $ | 1 |  |  | $ | (3) |
Total losses (gains) recognized in comprehensive income | $ | (8) |  |  | $ | 2 |  |  | $ | (2) |
Summary of the funded status of postretirement plans | The benefit obligation, fair value of plan assets, funded status, and amounts recognized in the consolidated financial statements for our defined benefit domestic and international pension plans were:
| Domestic Plans |  | International Plans
| December 31, |  | December 31,
(in millions) | 2022 |  | 2021 |  | 2022 |  | 2021
Change in benefit obligation: |  |  |  |  |  |  |
Benefit obligation at beginning of year | $ | 117 |  |  | $ | 123 |  |  | $ | 926 |  |  | $ | 1,032 |
Service cost | 3 |  |  | 3 |  |  | 12 |  |  | 14 |
Interest cost | 3 |  |  | 3 |  |  | 13 |  |  | 11 |
Benefits paid | (7) |  |  | (7) |  |  | (29) |  |  | (34) |
Actuarial loss (gain) (a) | (24) |  |  | (5) |  |  | (241) |  |  | (56) |
Plan amendments, settlements and curtailments (b) | — |  |  | — |  |  | (202) |  |  | (3) |
Foreign currency translation and other | — |  |  | — |  |  | (89) |  |  | (38) |
Benefit obligation at end of year | $ | 92 |  |  | $ | 117 |  |  | $ | 390 |  |  | $ | 926 |
Change in plan assets: |  |  |  |  |  |  |
Fair value of plan assets at beginning of year | $ | 108 |  |  | 113 |  |  | $ | 571 |  |  | $ | 578 |
Employer contributions |  |  | — |  |  | 16 |  |  | 26 |
Actual return on plan assets | (21) |  |  | 2 |  |  | (133) |  |  | 9 |
Benefits paid | (7) |  |  | (7) |  |  | (29) |  |  | (34) |
Plan amendments, settlements and curtailments (b) | — |  |  | — |  |  | (202) |  |  | (3) |
Foreign currency translation and other | — |  |  | — |  |  | (57) |  |  | (5) |
Fair value of plan assets at end of year | $ | 80 |  |  | $ | 108 |  |  | $ | 166 |  |  | $ | 571 |
Unfunded status of the plans | $ | (12) |  |  | $ | (9) |  |  | $ | (224) |  |  | $ | (355) |
(a) Actuarial gains for our qualified defined benefit pension plans in 2022 primarily reflect an increase in the discount rate in 2022 as compared to 2021, which decreased benefit obligations. (b) Qualified defined benefit pension plan settlements in 2022 predominantly related to the transfer of gross benefit obligations and related plan assets to an insurance company upon completion of the U.K. pension buy-out as described above.
Projected benefit obligations | The following table provides a roll-forward of the projected benefit obligation for the other post-retirement employee benefit plans:
(in millions) | 2022 |  | 2021
Change in benefit obligation: |  |  |
Benefit obligation at beginning of year | $ | 42 |  |  | $ | 44 |
Interest cost | 1 |  |  | 1 |
Benefits paid | (3) |  |  | (3) |
Actuarial gain | (9) |  |  | — |
Benefit obligation at the end of year | $ | 31 |  |  | $ | 42 |
Accumulated benefit obligation and fair value of the plans' assets | For defined benefit pension plans in which the ABO was in excess of the fair value of the plans’ assets, the projected benefit obligation, ABO and fair value of the plans’ assets were as follows:
| December 31,
(in millions) | 2022 |  | 2021
Projected benefit obligation | $ | 391 |  |  | $ | 574 |
Accumulated benefit obligation | 372 |  |  | 541 |
Fair value of plan assets | 121 |  |  | 164 |
Components of net periodic benefit cost and other amounts recognized in other comprehensive income | Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss), as they pertain to our defined benefit pension plans are as follows:
| Year Ended December 31,
(in millions) | 2022 |  | 2021 |  | 2020
Domestic defined benefit pension plans: |  |  |  |  |
Net (gain) loss | $ | 3 |  |  | $ | — |  |  | $ | 3 |
Amortization of net actuarial loss | (3) |  |  | (4) |  |  | (3) |
(Gains) losses recognized in other comprehensive income (loss) | $ | — |  |  | $ | (4) |  |  | $ | — |
International defined benefit pension plans: |  |  |  |  |
Net (gain) loss | $ | (95) |  |  | $ | (51) |  |  | $ | 74 |
Amortization of net actuarial loss | (8) |  |  | (17) |  |  | (14) |
U.K. pension settlement expense | (137) |  |  | — |  |  | — |
Foreign Exchange | (39) |  |  | (11) |  |  | 19 |
(Gains) losses recognized in other comprehensive income (loss) | $ | (279) |  |  | $ | (79) |  |  | $ | 79 |
Total (gains) losses recognized in other comprehensive income (loss) | $ | (279) |  |  | $ | (83) |  |  | $ | 79 |
Total (gains) losses recognized in comprehensive income | $ | (114) |  |  | $ | (52) |  |  | $ | 110 |
Weighted-average assumptions used to determine projected benefit obligations and net periodic benefit cost | The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic benefit cost, as they pertain to our pension plans.
| 2022 |  | 2021 |  | 2020
| U.S. |  | Int’l |  | U.S. |  | Int’l |  | U.S. |  | Int’l
Benefit Obligation Assumptions |  |  |  |  |  |  |  |  |  |  |
Discount rate | 5.25 | % |  | 4.13 | % |  | 3.00 | % |  | 1.55 | % |  | 2.50 | % |  | 1.06 | %
Rate of future compensation increase | NM |  | 2.79 | % |  | NM |  | 2.84 | % |  | NM |  | 2.79 | %
Net Periodic Benefit Cost Assumptions |  |  |  |  |  |  |  |  |  |  |
Discount rate | 3.00 | % |  | 1.55 | % |  | 2.50 | % |  | 1.06 | % |  | 3.25 | % |  | 1.80 | %
Expected long-term return on plan assets | 5.50 | % |  | 2.79 | % |  | 6.50 | % |  | 2.60 | % |  | 6.50 | % |  | 2.82 | %
Rate of future compensation increase | NM |  | 2.84 | % |  | NM |  | 2.79 | % |  | NM |  | 2.94 | %
NM Not meaningful. The pension benefits for future service for all the U.S. pension plans are based on years of service and not impacted by future compensation increases.
Allocation of plan assets | The following table provides the actual asset allocations of plan assets as of December 31, 2022 and 2021, and the related asset target allocation ranges by asset category:
| 2022 |  | 2021 |  | Target Allocation Ranges
Equity securities | 47.1 | % |  | 23.0 | % |  | 35-75%
Fixed income | 43.9 | % |  | 21.9 | % |  | 45-70%
Cash, insurance contracts and other | 9.0 | % |  | 55.1 | % |  | 0-15%
The following table provides the fair value of plan assets held by our pension benefit plans by asset class:
| 2022 |  | 2021
(in millions) | Level 1 | Level 2 | Level 3 | NAV Practical Expedient | Total |  | Level 1 | Level 2 | Level 3 | NAV Practical Expedient | Total
Equity securities |  |  |  |  |  |  |  |  |  |  |
Global stock funds/securities | $ | 37 |  | $ | 51 |  | $ | — |  | $ | 9 |  | $ | 97 |  |  | $ | 43 |  | $ | 71 |  | $ | — |  | $ | 14 |  | $ | 128 |
Diversified growth and income funds | — |  | — |  | — |  | 19 |  | 19 |  |  | — |  | — |  | — |  | 28 |  | 28 |
Fixed income |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | 1 |  | 67 |  | — |  | 5 |  | 73 |  |  | 1 |  | 92 |  | — |  | 7 |  | 100 |
Government bonds | — |  | 13 |  | — |  | 18 |  | 31 |  |  | — |  | 17 |  | — |  | 27 |  | 44 |
Hedging instruments | — |  | 4 |  | — |  | — |  | 4 |  |  | — |  | 5 |  | — |  | — |  | 5 |
Insurance contracts and other | — |  | — |  | 20 |  |  | 20 |  |  | — |  | — |  | 368 |  | — |  | 368 |
Cash & cash equivalents | 2 |  | — |  | — |  | — |  | 2 |  |  | 6 |  | — |  | — |  | — |  | 6 |
Total plan assets subject to leveling | $ | 40 |  | $ | 135 |  | $ | 20 |  | $ | 51 |  | $ | 246 |  |  | $ | 50 |  | $ | 185 |  | $ | 368 |  | $ | 76 |  | $ | 679 |
Reconciliation of the beginning and ending balances of fair value measurements with pension plans using significant unobservable inputs (level 3) | The following table presents a reconciliation of the beginning and ending balances of fair value measurement within our pension plans using significant unobservable inputs (Level 3):
(in millions) |  | Insurance Contracts and Other
Balance, December 31, 2020 |  | $ | 384 |
Purchases, sales, settlements, net |  | (8) |
Actual return on plan assets |  | (6) |
Currency impact |  | (2) |
Balance, December 31, 2021 |  | 368 |
Purchases, sales, settlements, net |  | (210) |
Actual return on plan assets |  | (99) |
Currency impact |  | (39) |
Balance, December 31, 2022 |  | $ | 20 |
Expected benefit payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:
(in millions) | Pension |  | Other Benefits
2023 | $ | 27 |  |  | $ | 3 |
2024 | 27 |  |  | 3 |
2025 | 27 |  |  | 3 |
2026 | 28 |  |  | 3 |
2027 | 28 |  |  | 3 |
Years 2026 - 2030 | 147 |  |  | 11 |

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of benefit obligation and plan assets of defined benefit plan with accumulated benefit obligation in excess of plan assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 3 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e2417-114920 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 3 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e2417-114920 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 55 -Paragraph 17 -URI https://asc.fasb.org/extlink&oid=123450688&loc=d3e4179-114921 + Details
Name: | us-gaap_ScheduleOfAccumulatedBenefitObligationsInExcessOfFairValueOfPlanAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the major categories of plan assets of pension plans and/or other employee benefit plans. This information may include, but is not limited to, the target allocation of plan assets, the fair value of each major category of plan assets, and the level within the fair value hierarchy in which the fair value measurements fall. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(5) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 + Details
Name: | us-gaap_ScheduleOfAllocationOfPlanAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the amounts that are recognized in the balance sheet (or statement of financial position) for pension plans and/or other employee benefit plans, showing separately the assets and current and noncurrent liabilities (if applicable) recognized. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 + Details
Name: | us-gaap_ScheduleOfAmountsRecognizedInBalanceSheetTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the net gain (loss) and net prior service cost or credit recognized in other comprehensive income (loss) for the period for pension plans and/or other employee benefit plans, and reclassification adjustments of other comprehensive income (loss) for the period, as those amounts, including amortization of the net transition asset or obligation, are recognized as components of net periodic benefit cost. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 + Details
Name: | us-gaap_ScheduleOfAmountsRecognizedInOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assumption used to determine benefit obligation and net periodic benefit cost of defined benefit plan. Includes, but is not limited to, discount rate, rate of compensation increase, expected long-term rate of return on plan assets and interest crediting rate. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (k) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 + Details
Name: | us-gaap_ScheduleOfAssumptionsUsedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in the accumulated postemployment benefit obligation from the beginning to the end of the period, showing separately, if applicable, the effects of the following: service cost, interest cost, contributions by plan participants, actuarial gains and losses, foreign currency exchange rate changes, benefits paid, plan amendments, business combinations, divestitures, curtailments, settlements, and special and contractual termination benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 + Details
Name: | us-gaap_ScheduleOfChangesInAccumulatedPostemploymentBenefitObligationsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in the benefit obligation of pension plans and/or other employee benefit plans from the beginning to the end of the period, showing separately, if applicable, the effects of the following: service cost, interest cost, contributions by plan participants, actuarial gains and losses, foreign currency exchange rate changes, benefits paid, plan amendments, business combinations, divestitures, curtailments, settlements, and special and contractual termination benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 + Details
Name: | us-gaap_ScheduleOfChangesInProjectedBenefitObligationsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the effect of fair value measurements using significant unobservable inputs (Level 3) on changes in plan assets of pension plans and/or other employee benefit plans for the period. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iv)(02) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 + Details
Name: | us-gaap_ScheduleOfEffectOfSignificantUnobservableInputsChangesInPlanAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of benefits expected to be paid by pension plans and/or other employee benefit plans in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 + Details
Name: | us-gaap_ScheduleOfExpectedBenefitPaymentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net benefit costs for pension plans and/or other employee benefit plans including service cost, interest cost, expected return on plan assets, gain (loss), prior service cost or credit, transition asset or obligation, and gain (loss) recognized due to settlements or curtailments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 + Details
Name: | us-gaap_ScheduleOfNetBenefitCostsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of net funded status of pension plans and/or other employee benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 + Details
Name: | us-gaap_ScheduleOfNetFundedStatusTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Defined Contribution Plan, Employer Contribution + References No definition available. + Details
Name: | xyl_DefinedContributionPlanEmployerContributionTableTextBlock
Namespace Prefix: | xyl_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration