Restructuring and Asset Impairment Charges

12 Months Ended

Dec. 31, 2018

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 2018, 2017 and 2016, 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. In 2018, the charges included the reduction of headcount and consolidation of facilities within our Measurement & Control Solutions and Water Infrastructure segments, as well as headcount reductions within our Applied Water segment. In 2017 and 2016 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)	2018			2017			2016
By component:
Severance and other charges	$	19		$	20		$	28
Lease related charges	1			—			2
Other restructuring charges	1			2			1
Reversal of restructuring accruals	(1		)	(2		)	(1		)
Total restructuring charges	20			20			30
Asset impairment charges	2			5			—
Total restructuring and asset impairment charges	$	22		$	25		$	30
By segment:
Water Infrastructure	$	11		$	7		$	12
Applied Water	2			13			10
Measurement & Control Solutions	9			5			6
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, 2018 and 2017.

(in millions)	2018			2017
Restructuring accruals - January 1	$	7		$	15
Restructuring charges	20			20
Cash payments	(21		)	(28		)
Foreign currency and other	(1		)	—
Restructuring accruals - December 31	$	5		$	7
By segment:
Water Infrastructure	$	1		$	1
Applied Water	1			1
Measurement & Control Solutions	2			2
Regional selling locations (a)	1			3
Corporate and other	—			—

(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, 2018 and 2017.

	2018		2017
Planned reductions - January 1	47		188
Additional planned reductions	206		151
Actual reductions and reversals	(184	)	(292	)
Planned reductions - December 31	69		47

The following table presents expected restructuring spend:

(in millions)	Water Infrastructure		Applied Water		Measurement & Control Solutions		Corporate		Total
Actions Commenced in 2018:
Total expected costs	$	9	$	1	$	7	$	—	$	17
Costs incurred during 2018	7		1		7		—		15
Total expected costs remaining	$	2	$	—	$	—	$	—	$	2
Actions Commenced in 2017:
Total expected costs	$	18	$	12	$	3	$	—	$	33
Costs incurred during 2017	5		4		2		—		11
Costs incurred during 2018	2		1		1		—		4
Total expected costs remaining	$	11	$	7	$	—	$	—	$	18
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
Costs incurred during 2018	—		—		1		—		1
Total expected costs remaining	$	—	$	—	$	—	$	—	$	—

The Water Infrastructure, Applied Water and Measurement & Control Solutions actions commenced in 2018 consist primarily of severance charges and are expected to continue through the third quarter of 2019. The Water Infrastructure, Applied Water and Measurement & Control Solutions actions commenced in 2017 consist primarily of severance charges and are expected to continue through the second quarter of 2020. The Water Infrastructure, Applied Water, Measurement & Control Solutions and Corporate actions commenced in 2016 consist primarily of severance charges and are complete.

Asset Impairment Charges

During the fourth quarter of 2018 we determined that certain assets within our Water Infrastructure segment, including certain software, were impaired. Accordingly we recognized an impairment charge of $2 million.

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 11, "Goodwill and Other Intangible Assets," for additional information.