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 2013, the costs incurred primarily relate to the reduction in structural costs, including the elimination of headcount and consolidation of facilities within both our Water Infrastructure and Applied Water segments. The components of restructuring and asset impairment charges incurred during each of the previous three years ended are presented below.



	Year Ended December 31,
(in millions)	2013		2012		2011
By component:
Severance and other charges	$	38	$	17	$	—
Lease related charges	2		—		—
Total restructuring charges	40		17		—
Asset impairment	2		—		2
Total restructuring and asset impairment charges	$	42	$	17	$	2

By segment:
Water Infrastructure	$	33	$	14	$	—
Applied Water	9		3		2

Restructuring

The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Balance Sheet within accrued liabilities, for the years ended December 31, 2013 and 2012.



(in millions)	2013			2012
Restructuring accruals - January 1	$	9		$	1
Restructuring charges	40			17
Cash payments	(35		)	(9		)
Other	(1		)	—
Restructuring accruals - December 31	$	13		$	9

By segment:
Water Infrastructure	$	10		$	6
Applied Water	3			3

The following is a rollforward of employee position eliminations associated with restructuring activities for the years ended December 31, 2013 and 2012.



	2013		2012
Planned reductions - January 1	54		—
Additional planned reductions	513		189
Actual reductions	(516	)	(135	)
Planned reductions - December 31	51		54

Total expected costs of approximately $33 million for Water Infrastructure associated with actions that commenced during 2013 include $31 million incurred in 2013 and $2 million remaining to be incurred during 2014. Total expected costs of approximately $10 million for Applied Water include $8 million incurred in 2013 and $2 million remaining to be incurred during 2014. These costs primarily comprise severance charges. We currently expect these actions to continue through the end of 2014.

Asset Impairment Charges

During the fourth quarter of 2013 we performed our annual impairment test of our indefinite-lived intangibles assets which resulted in an impairment charge of $2 million related to trade names within our Water Infrastructure segment. Refer to Note 11, “Goodwill and Other Intangible Assets,” for additional information.