Restructuring and Asset Impairment Charges

12 Months Ended

Dec. 31, 2019

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 2019, 2018 and 2017, 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 2019 and 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 the charges included the reduction of headcount and consolidation of facilities within our Applied Water, Water Infrastructure, and Measurement & Control Solutions segments.

The following table presents the components of restructuring expense and asset impairment charges incurred during each of the previous three years:

	Year Ended December 31,
(in millions)	2019			2018			2017
By component:
Severance and other charges	$	51		$	19		$	20
Lease related charges	1			1			—
Other restructuring charges	2			1			2
Reversal of restructuring accruals	(1		)	(1		)	(2		)
Total restructuring charges	53			20			20
Asset impairment charges	10			2			5
Total restructuring and asset impairment charges	$	63		$	22		$	25
By segment:
Water Infrastructure	$	20		$	11		$	7
Applied Water	5			2			13
Measurement & Control Solutions	38			9			5
Corporate and other	—			—			—

Restructuring

The following table displays a roll-forward of the restructuring accruals, presented on our Consolidated Balance Sheets within "accrued and other current liabilities" and "other non-current accrued liabilities," for the years ended December 31, 2019 and 2018:

(in millions)	2019			2018
Restructuring accruals - January 1	$	5		$	7
Restructuring charges	53			20
Cash payments	(30		)	(21		)
Foreign currency and other	(1		)	(1		)
Restructuring accruals - December 31	$	27		$	5
By segment:
Water Infrastructure	$	1		$	1
Applied Water	—			1
Measurement & Control Solutions	19			2
Regional selling locations (a)	7			1

(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 table presents expected restructuring spend:

(in millions)	Water Infrastructure		Applied Water		Measurement & Control Solutions		Corporate		Total
Actions Commenced in 2019:
Total expected costs	$	19	$	5	$	28	$	—	$	52
Costs incurred during 2019	18		5		27		—		50
Total expected costs remaining	$	1	$	—	$	1	$	—	$	2
Actions Commenced in 2018:
Total expected costs	$	8	$	1	$	7	$	—	$	16
Costs incurred during 2018	7		1		7		—		15
Costs incurred during 2019	1		—		—		—		1
Total expected costs remaining	$	—	$	—	$	—	$	—	$	—
Actions Commenced in 2017:
Total expected costs	$	12	$	7	$	4	$	—	$	23
Costs incurred during 2017	5		4		2		—		11
Costs incurred during 2018	2		1		1		—		4
Costs incurred during 2019	1		—		1		—		2
Total expected costs remaining	$	4	$	2	$	—	$	—	$	6

The Water Infrastructure, Applied Water, and Measurement & Control Solutions actions commenced in 2019 consist primarily of severance charges. The Applied Water actions are complete, the Water Infrastructure actions are expected to continue through Q1 2020, and the Measurement & Control Solutions actions are expected to continue through the fourth quarter of 2020. The Water Infrastructure, Applied Water, and Measurement & Control Solutions actions commenced in 2018 consist primarily of severance charges and are complete. 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 2021.

Asset Impairment

During the first and third quarter of 2019 we determined that certain assets within our Measurement & Control Solutions segment, including customer relationships, internally developed software, proprietary technology, and plant property & equipment, were impaired. Accordingly we recognized an impairment charge of $10 million during the year.

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. Refer to Note 12, "Goodwill and Other Intangible Assets," for additional information.