XML 30 R11.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Restructuring Charges
3 Months Ended
Mar. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Charges Restructuring and Asset Impairment Charges
Restructuring
During the three months ended March 31, 2024, we incurred restructuring costs of $9 million. We incurred these charges primarily as a result of our acquisition of Evoqua. Approximately $5 million of the charges represented the reduction of headcount related to the integration of Evoqua for the three months ended March 31, 2024. Additionally, during the three months ended March 31, 2024, we incurred $4 million of charges related to our efforts to reposition our businesses to optimize our cost structure, improve our operational efficiency and effectiveness, strengthen our competitive positioning and better serve our customers.
During the three months ended March 31, 2023, we incurred restructuring charges of $6 million. We incurred these charges primarily as a continuation of our efforts to reposition our European and North American businesses to optimize our cost structure and improve our operational efficiency and effectiveness.
The following table presents the components of restructuring expense and asset impairment charges:
Three Months Ended
March 31,
(in millions)20242023
By component:
Severance and other charges$9 $
Asset impairment1 — 
Reversal of restructuring accruals(1)— 
Total restructuring costs$9 $
Asset impairment charges1 
Total restructuring and asset impairment charges$10 $
By segment:
Water Infrastructure$5 $
Applied Water1 
Measurement and Control Solutions 
Water Solutions and Services2 — 
Corporate and other2 — 
The following table displays a roll-forward of the restructuring accruals, presented on our Condensed Consolidated Balance Sheets within "Accrued and other current liabilities" and "Other non-current accrued liabilities", for the three months ended March 31, 2024 and 2023:
(in millions)20242023
Restructuring accruals - January 1$24 $10 
Restructuring costs, net9 
Cash payments(11)(6)
Asset impairment(1)— 
Foreign currency and other(1)— 
Restructuring accruals - March 31$20 $10 
By segment:
Water Infrastructure$4 $
Applied Water1 — 
Measurement and Control Solutions7 
Water Solutions and Services2 — 
Regional selling locations (a)5 
Corporate and other1 
(a)Regional selling locations consist primarily of selling and marketing organizations and related support services that incurred restructuring expense that was allocated to the segments. The liabilities associated with restructuring expense were not allocated to the segments.
The following table presents expected restructuring spend in 2024 and thereafter:
(in millions)Water InfrastructureApplied WaterMeasurement and Control SolutionsWater Solutions and ServicesCorporateTotal
Actions Commenced in 2024:
Total expected costs$— $$— $$— $
Costs incurred during Q1 2024— — — 
Total expected costs remaining$— $— $— $$— $
Actions Commenced in 2023:
Total expected costs$19 $10 $11 $$36 $83 
Costs incurred in 202313 10 35 71 
Costs incurred during Q1 2024— — — 
Total expected costs remaining$$$$— $— $
The actions commenced in 2024 consist primarily of severance charges. The actions are expected to continue through the end of 2024.
Asset Impairment
During the first quarter of 2024, we recognized a $1 million impairment charge for internally developed software within Corporate. Refer to Note 9, "Goodwill and Other Intangible Assets," for additional information.
During the first quarter of 2023, we determined that internally developed in-process software within our Measurement and Control Solutions segment was impaired as a result of actions taken to prioritize strategic investments and we therefore recognized an impairment charge of $2 million. Refer to Note 9, "Goodwill and Other Intangible Assets," for additional information.