v3.25.2
Accrued and Other Current Liabilities
6 Months Ended
Jun. 30, 2025
Payables and Accruals [Abstract]  
Accrued and Other Current Liabilities Current Liabilities
The components of total Accrued and other current liabilities are as follows:
(in millions)June 30,
2025
December 31,
2024
Compensation and other employee-benefits$335 $409 
Customer-related liabilities385 384 
Accrued taxes168 201 
Lease liabilities 128 109 
Accrued warranty costs45 43 
Other accrued liabilities125 125 
Total accrued and other current liabilities$1,186 $1,271 
The Company facilitates the opportunity for suppliers to participate in voluntary supply chain financing programs with third-party financial institutions. Xylem agrees on commercial terms, including payment terms, with suppliers regardless of program participation. The Company does not determine the terms or conditions of the arrangement between suppliers and the third-party financial institutions. Participating suppliers are paid directly by the third-party financial institution. Xylem pays the third-party financial institution the stated amount of confirmed invoices from its designated suppliers at the original invoice amount on the original maturity dates of the invoices, ranging from 45 to 180 days. Xylem does not pay fees related to these programs. Xylem or the third-party financial institutions may terminate the agreements upon at least 30 days’ notice. The total outstanding balance presented within "Accounts payable" on our Condensed Consolidated Balance Sheets under these programs is $278 million and $250 million as of June 30, 2025 and December 31, 2024, respectively.
The table below provides changes in the confirmed obligations outstanding related to our supplier financing programs over the six months ended June 30, 2025:
(in millions)2025
Confirmed obligations outstanding – January 1$250 
Invoices confirmed523 
Confirmed invoices paid(500)
Foreign currency and other5 
Confirmed obligations outstanding – June 30$278