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Restructuring and Asset Impairment Charges
12 Months Ended
Dec. 31, 2016
Restructuring and Related Activities [Abstract]  
Restructuring and Asset Impairment Charges Restructuring 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 2016, 2015 and 2014, 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 and Water Infrastructure segments, as well as Sensus and 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)
 
2016
 
2015
 
2014
By component:
 
 
 
 
 
 
Severance and other charges
 
$
28

 
$
7

 
$
26

Lease related charges
 
2

 

 
1

Fixed asset write-offs
 
1

 

 

Reversal of restructuring accruals
 
(1
)
 
(1
)
 
(1
)
Total restructuring charges
 
30

 
6

 
26

 
 
 
 
 
 
 
By segment:
 
 
 
 
 
 
Water Infrastructure
 
$
17

 
$
5

 
$
19

Applied Water
 
10

 
1

 
6

Sensus
 
1

 

 

Corporate and other
 
2

 

 
1


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, 2016 and 2015.
(in millions)
 
2016
 
2015
Restructuring accruals - January 1
 
$
3

 
$
12

Restructuring charges
 
30

 
6

Cash payments
 
(16
)
 
(14
)
Foreign currency and other
 
(2
)
 
(1
)
Restructuring accruals - December 31
 
$
15

 
$
3

 
 
 
 
 
By segment:
 
 
 
 
Water Infrastructure
 
$
5

 
$
1

Applied Water
 
5

 
1

Sensus
 
1

 

Regional selling locations (a)
 
2

 
1

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, 2016 and 2015.
 
 
2016
 
2015
Planned reductions - January 1
 
82

 
133

Additional planned reductions
 
612

 
87

Actual reductions and reversals
 
(506
)
 
(138
)
Planned reductions - December 31
 
188

 
82


Total expected costs associated with actions that commenced during 2016 are approximately $19 million for
Water Infrastructure, these costs primarily consist of severance charges. Approximately $16 million of the expected cost was incurred in 2016. We currently expect activity related to these actions to continue through the end of 2017. Total expected costs associated with actions that commenced during 2016 are approximately $13 million for Applied Water, these costs primarily consist of severance charges. Approximately $10 million of the expected cost was incurred in 2016. We currently expect activity related to these actions to continue through the end of 2017. Total expected costs associated with actions commenced during 2016 are approximately $2 million for Sensus, these costs primarily consist of severance charges. Approximately $1 million of the expected cost was incurred in 2016. We currently expect activity related to these actions to continue through 2018. Total expected costs associated with actions that commenced during 2016 are approximately $2 million for Corporate, these costs primarily consist of severance charges. All of the costs related to these actions have been incurred in 2016.
Total expected costs associated with actions for Water Infrastructure that commenced during 2015 were approximately $5 million. These costs primarily consisted of severance charges. The actions are substantially complete with approximately $4 million of the expected cost incurred in 2015 and $1 million incurred during 2016. Total expected costs associated with actions for Applied Water that commenced during 2015 were approximately $1 million. These costs primarily consisted of severance charges. Substantially all of the costs associated with these actions were incurred in 2015.
Total expected costs associated with actions for Water Infrastructure that commenced during 2014 were approximately $19 million. The actions are substantially complete with approximately $18 million of the expected cost incurred in 2014 and $1 million incurred during 2015. Total expected costs associated with actions for Applied Water that commenced during 2014 were approximately $6 million. Substantially all of the costs associated with these actions were incurred in 2014.