The acquisition of Evoqua contributed $343 million to the Water Solutions and Services segment's revenue, driving a 171.0% increase. This strategic move enhances Xylem's capabilities in tailored services and solutions, including on-demand water and outsourced water services.

Organic orders increased by 3.4% year-over-year, demonstrating sustained demand for Xylem's products and services. This growth, excluding acquisition impacts, reflects the company's ability to innovate and capture market share in its core segments.

Increased spending on strategic investments negatively impacted operating margin by 400 basis points, indicating a focus on long-term growth initiatives. While these investments may pressure short-term profitability, they are expected to drive future innovation and market leadership.

Productivity savings of $12 million partially offset inflationary pressures, demonstrating management's efforts to control costs. These savings indicate operational improvements and efficient resource allocation.

Xylem expects to incur between $30 and $40 million in restructuring costs for the full year, signaling ongoing efforts to streamline operations. These actions are intended to improve the company's cost base and strategic positioning.

Total backlog increased by 40.8% year-over-year, with $1.417 billion of the increase coming from acquired backlog. This substantial backlog provides visibility into future revenue streams and underscores strong demand for Xylem's solutions.

The 10-Q states that there have been no material changes from the risk factors previously disclosed in the 2023 Annual Report. This suggests a stable risk environment, though the existing risks remain relevant.

The investigation into potential financial misstatements at Evoqua remains ongoing, with Xylem cooperating. While Xylem believes it will not have a material adverse effect, the uncertainty could impact investor sentiment.

Management's discussion highlights geopolitical events, including the Russia-Ukraine conflict and the Middle East, as well as inflation and related monetary policy as factors that could impact future results. These macroeconomic factors introduce uncertainty into Xylem's operating environment.

Measurement and Control Solutions revenue increased $84 million, or 22.2%, with the change at constant currency coming entirely from organic growth. This indicates a strong competitive position and successful innovation in this segment.

Applied Water revenue decreased $17 million, or 3.8%, with the change at constant currency coming entirely from an organic decline. This indicates a weakening competitive position or market conditions in this segment.

Water Infrastructure revenue increased $164 million, or 40.0%, with the remainder of the increase coming from organic revenue growth of $26 million, or 6.3%. This indicates a strong competitive position and successful innovation in this segment.

SG&A expenses increased by $120 million to $474 million, or 23.3% of revenue, with $91 million of additional operational SG&A from the acquisition of Evoqua. This indicates that the acquisition has increased operational expenses.

Productivity savings of $12 million partially offset inflationary pressures, demonstrating management's efforts to control costs. These savings indicate operational improvements and efficient resource allocation.

Xylem expects to incur between $30 and $40 million in restructuring costs for the full year, signaling ongoing efforts to streamline operations. These actions are intended to improve the company's cost base and strategic positioning.

R&D expense was $59 million, or 2.9% of revenue, in the first quarter of 2024, as compared to $53 million, or 3.7% of revenue in the first quarter of 2023. The R&D spend has remained fairly consistent year over year.

During the first quarter of 2024, we recognized a $1 million impairment charge for internally developed software within Corporate. This indicates that some software development projects were not successful.

Measurement and Control Solutions revenue increased $84 million, or 22.2%, with the change at constant currency coming entirely from organic growth. This indicates a strong competitive position and successful innovation in this segment.

For the three months ended March 31, 2024 and March 31, 2023, the Company repurchased approximately 0.1 million shares of common stock for approximately $15 million and less than 0.1 million shares of common stock for $8 million.

Cash used by financing activities was $82 million for the three months ended March 31, 2024 as compared to cash used of $63 million in the comparable prior year period. The increase in cash used reflects higher dividend payments.

Cash used in investing activities was $51 million for the three months ended March 31, 2024 as compared to $37 million in the comparable prior year period. The increase in cash used reflects higher capital expenditures in the current period.

The 2023 Credit Facility also includes a pricing grid that determines the applicable margin based on Xylem's credit rating, with a further adjustment based on Xylem's achievement of certain Environmental, Social and Governance ("ESG") key performance indicators.

Xylem is a leading equipment and service provider for water and wastewater applications with a broad portfolio of products and services addressing the full cycle of water, from collection, distribution and use to the return of water to the environment.

The Green Bond includes covenants that restrict our ability, and the ability of our restricted subsidiaries, to incur debt secured by liens on certain property above a threshold, to engage in certain sale and leaseback transactions involving certain property above a threshold, and to consolidate or merge, or convey or transfer all or substantially all of our assets.

Revenue increased $103 million, or 7.1% for the three months ended March 31, 2024, with foreign currency translation having a favorable impact on revenue of $2 million. The increases reflect strong organic growth across all of our major geographic regions, led by the U.S.

Management's discussion highlights geopolitical events, including the Russia-Ukraine conflict and the Middle East, as well as inflation and related monetary policy as factors that could impact future results. These macroeconomic factors introduce uncertainty into Xylem's operating environment.

Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include supply chain shortages, logistics challenges, tight labor markets, prevailing price changes, tariffs and other factors.