The following table sets forth selected consolidated financial data for the five years ended December 31, 2015. This selected consolidated financial data should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and the notes thereto included in this Report.
On and prior to the Distribution Date, our financial position and results of operations consisted of WaterCo, the water equipment and services businesses of ITT Corporation. The Spin-off was completed pursuant to the Distribution Agreement among ITT, Exelis Inc., acquired by Harris Inc. on May 29, 2015, and Xylem. Xylem's financial position and results of operations have been derived from ITT’s historical accounting records and are presented on a carve-out basis through the Distribution Date, while our financial results for Xylem post Spin-off are prepared on a stand-alone basis. Further, financial information for the twelve months ended December 31, 2011 consists of the consolidated results of Xylem on a stand-alone basis for the two months of November and December and the combined results of operations of WaterCo for the first ten months on a carve-out basis.
Year Ended December 31,
(in millions, except per share data)
2015
2014
2013
2012
2011 (a)
Results of Operations Data:
Revenue
$
3,653
$
3,916
$
3,837
$
3,791
$
3,803
Gross profit
1,404
1,513
1,499
1,502
1,461
Gross margin
38.4
%
38.6
%
39.1
%
39.6
%
38.4
%
Operating income
449
463
363
443
395
Operating margin
12.3
%
11.8
%
9.5
%
11.7
%
10.4
%
Net income
340
337
228
297
279
Per Share Data:
Earnings per share:
Basic
$
1.88
$
1.84
$
1.23
$
1.60
$
1.51
Diluted
1.87
1.83
1.22
1.59
1.50
Basic shares outstanding
180.9
183.1
185.2
185.8
185.1
Diluted shares outstanding
181.7
184.2
186.0
186.2
185.3
Cash dividends per share
$
0.5632
$
0.5120
$
0.4656
$
0.4048
$
0.1012
Balance Sheet Data (at period end):
Cash and cash equivalents
$
680
$
663
$
533
$
504
$
318
Working capital*
810
882
930
859
834
Total assets (b)(c)
4,657
4,833
4,857
4,639
4,350
Total debt (b)
1,274
1,284
1,235
1,197
1,197
*
The Company calculates Working capital as follows: net accounts receivable + inventories - accounts payable - customer advances.
(a)
In 2011, we acquired YSI Incorporated, which contributed revenue of $35 million in 2011 and $371 million of total assets on date of acquisition.
(b)
Debt issuance costs of $6 million, $8 million and $9 million in 2013, 2012 and 2011, respectively, were reclassified to long-term debt from other non-current assets within the Consolidated Balance Sheet. See Note 2, “Recently Issued Accounting Pronouncements,” of the consolidated financial statements.
(c)
Deferred tax assets of $33 million, $32 million and $41 million in 2013, 2012 and 2011, respectively, were reclassified to deferred tax liabilities within the Consolidated Balance Sheet. See Note 2, “Recently Issued Accounting Pronouncements,” of the consolidated financial statements.
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