Restructuring and Asset Impairment Charges

12 Months Ended

Dec. 31, 2017

Restructuring and Related Activities [Abstract]

Restructuring and Asset Impairment Charges

Restructuring and Asset Impairment Charges

From time to time, the Company will incur costs related to restructuring actions in order to optimize our cost base and more strategically position ourselves based on the economic environment and customer demand. During 2017, 2016 and 2015, the costs incurred primarily relate to an effort to reposition our European and North American businesses to optimize our cost structure and improve our operational efficiency and effectiveness. The charges included the reduction of headcount and consolidation of facilities within our Applied Water,Water Infrastructure, and Measurement & Control Solutions segments, as well as Corporate headcount reductions. The components of restructuring charges incurred during each of the previous three years ended are presented below.

	Year Ended December 31,
(in millions)	2017			2016			2015
By component:
Severance and other charges	$	20		$	28		$	7
Lease related charges	—			2			—
Other restructuring charges	2			1			—
Reversal of restructuring accruals	(2		)	(1		)	(1		)
Total restructuring charges	20			30			6
Asset impairment charges	5			—			—
Total restructuring and asset impairment charges	25			30			6
By segment:
Water Infrastructure	$	7		$	12		$	4
Applied Water	13			10			1
Measurement & Control Solutions	5			6			1
Corporate and other	—			2			—

Restructuring

The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Balance Sheets within accrued and other current liabilities, for the years ended December 31, 2017 and 2016.

(in millions)	2017			2016
Restructuring accruals - January 1	$	15		$	3
Restructuring charges	20			30
Cash payments	(28		)	(16		)
Foreign currency and other	—			(2		)
Restructuring accruals - December 31	$	7		$	15
By segment:
Water Infrastructure	$	1		$	2
Applied Water	1			5
Measurement & Control Solutions	2			4
Regional selling locations (a)	3			2
Corporate and other	—			2

(a) Regional selling locations consist primarily of selling and marketing organizations that incurred restructuring expense which was allocated to the segments. The liabilities associated with restructuring expense were not allocated to the segments.

The following is a rollforward of employee position eliminations associated with restructuring activities for the years ended December 31, 2017 and 2016.

	2017		2016
Planned reductions - January 1	188		82
Additional planned reductions	151		612
Actual reductions and reversals	(292	)	(506	)
Planned reductions - December 31	47		188

The following table presents expected restructuring spend:

(in millions)	Water Infrastructure		Applied Water		Measurement & Control Solutions		Corporate		Total
Actions Commenced in 2017:
Total expected costs	$	19	$	12	$	2	$	1	$	34
Costs incurred during 2017	5		4		2		—		11
Total expected costs remaining	$	14	$	8	$	—	$	1	$	23
Actions Commenced in 2016:
Total expected costs	$	13	$	14	$	10	$	2	$	39
Costs incurred during 2016	11		10		6		2		29
Costs incurred during 2017	2		4		3		—		9
Total expected costs remaining	$	—	$	—	$	1	$	—	$	1
Actions Commenced in 2015:
Total expected costs	$	4	$	1	$	1	$	—	$	6
Costs incurred during 2015	3		1		1		—		5
Costs incurred during 2016	1		—		—		—		1
Total expected costs remaining	$	—	$	—	$	—	$	—	$	—

The Water Infrastructure, Applied Water, Measurement & Control Solutions, and Corporate actions commenced in 2017 consist primarily of severance charges and are expected to continue through the end of 2019. The Water Infrastructure, Applied Water, Measurement & Control Solutions and Corporate actions commenced in 2016 consist primarily of severance charges and are largely complete. The Water Infrastructure, Applied Water and Measurement & Control Solutions actions commenced in 2015 consist primarily of severance charges and are complete.

Asset Impairment Charges

During the first quarter of 2017 we determined that certain assets within our Applied Water segment, including a tradename, were impaired. Accordingly we recognized an impairment charge of $5 million. Refer to Note 10, "Goodwill and Other Intangible Assets," for additional information.