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Restructuring and Asset Impairment Charges | 12 Months Ended
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Dec. 31, 2022
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 itself. During 2022 we incurred these charges primarily as a continuation of our efforts to reposition our business to optimize our cost structure and improve our operational efficiency and effectiveness. The charges primarily included the reduction of headcount across all segments. In response to the changes in business and economic conditions arising as a result of the COVID-19 pandemic, on June 2, 2020 management committed to a restructuring plan that includes actions across our businesses and functions globally. The plan was designed to support our long-term financial resilience and simplify our operations, strengthen our competitive positioning and better serve our customers. As a result of this action, during 2021, we recognized restructuring charges of $4 million and $2 million in our Water Infrastructure and Applied Water segments, respectively. These charges included reduction of headcount across both segments. Other, less significant, restructuring actions taken in 2021 resulted in $3 million of charges during 2021 and are included in the information presented below. During 2020, we recognized restructuring costs of $19 million, $4 million and $30 million in our Water Infrastructure, Applied Water and Measurement & Control Solutions segments, respectively. These charges included reduction of headcount across all segments and asset impairments within our Measurement & Control Solutions segment. Immaterial restructuring charges from other actions incurred during the first quarter of 2020 are included in the 2020 plan information presented below. 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) |  | 2022 |  | 2021 |  | 2020
By component: |  |  |  |  |  |
Severance and other charges |  | $ | 15 |  |  | $ | 10 |  |  | $ | 36 |
Asset impairment |  | — |  |  | 1 |  |  | 18 |
Other restructuring charges |  | — |  |  | 1 |  |  | 1 |
Reversal of restructuring accruals |  | — |  |  | (6) |  |  | (1) |
Total restructuring costs |  | 15 |  |  | 6 |  |  | 54 |
Asset impairment charges |  | 14 |  |  | 1 |  |  | 21 |
Total restructuring and asset impairment charges |  | $ | 29 |  |  | $ | 7 |  |  | $ | 75 |
By segment: |  |  |  |  |  |
Water Infrastructure |  | $ | 6 |  |  | $ | 8 |  |  | $ | 20 |
Applied Water |  | 4 |  |  | 2 |  |  | 4 |
Measurement & Control Solutions |  | 19 |  |  | (3) |  |  | 51 |
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, 2022 and 2021:
(in millions) |  | 2022 |  | 2021
Restructuring accruals - January 1 |  | $ | 7 |  |  | $ | 29 |
Restructuring costs |  | 15 |  |  | 6 |
Cash payments |  | (11) |  |  | (25) |
Asset impairment |  | — |  |  | (1) |
Foreign currency and other |  | (1) |  |  | (2) |
Restructuring accruals - December 31 |  | $ | 10 |  |  | $ | 7 |
By segment: |  |  |  |
Water Infrastructure |  | $ | 1 |  |  | $ | 1 |
Applied Water |  | — |  |  | 1 |
Measurement & Control Solutions |  | 3 |  |  | 4 |
Regional selling locations (a) |  | 4 |  |  | 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 table presents the total costs expected to be incurred, the amount incurred in the period, and the cumulative costs incurred to date for our 2020, 2021 and 2022 restructuring actions:
(in millions) |  | Water Infrastructure |  | Applied Water |  | Measurement & Control Solutions |  | Corporate |  | Total
Actions Commenced in 2022: |  |  |  |  |  |  |  |  |  |
Total expected costs |  | $ | 6 |  |  | $ | 4 |  |  | $ | 4 |  |  | $ | — |  |  | $ | 14 |
Costs incurred during 2022 |  | 6 |  |  | 4 |  |  | 4 |  |  | — |  |  | 14 |
Total expected costs remaining |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Actions Commenced in 2021: |  |  |  |  |  |  |  |  |  |
Total expected costs |  | $ | 3 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3 |
Costs incurred during 2021 |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 3 |
Costs incurred during 2022 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total expected costs remaining |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Actions Commenced in 2020: |  |  |  |  |  |  |  |  |  |
Total expected costs |  | $ | 23 |  |  | $ | 6 |  |  | $ | 30 |  |  | $ | — |  |  | $ | 59 |
Costs incurred during 2020 |  | 19 |  |  | 4 |  |  | 30 |  |  | — |  |  | 53 |
Costs incurred during 2021 |  | 4 |  |  | 2 |  |  | — |  |  | — |  |  | 6 |
Costs incurred during 2022 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total expected costs remaining |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
During 2022, we also incurred charges of $1 million within the Measurement & Control Solutions segment, related to actions commenced prior to 2020. During 2021, we recorded a reduction of $3 million within the Measurement & Control Solutions segment, related to actions commenced prior to 2020. The Water Infrastructure, Applied Water and Measurement & Control Solutions actions commenced in 2022 consist primarily of severance charges. The actions commenced in 2022 are complete. The Water Infrastructure actions commenced in 2021 consist primarily of severance charges. The actions commenced in 2021 are complete. Asset Impairment During 2022, we determined that certain assets including primarily software and customer relationships within our Measurement & Control Solutions segment were impaired. Accordingly, we recognized an impairment charge of $14 million. Refer to Note 11,"Goodwill and Other Intangible Assets," for additional information. During the third quarter of 2020, we determined that certain assets including software and proprietary technology within our Measurement & Control Solutions segment were impaired. Accordingly, we recognized an impairment charge of $11 million. Refer to Note 11, "Goodwill and Other Intangible Assets," for additional information. During the second quarter of 2020, we determined that internally developed in-process software within our Measurement & Control Solutions segment was impaired as a result of actions taken to prioritize strategic investments. Accordingly, we recognized an impairment charge of $10 million. Refer to Note 11, "Goodwill and Other Intangible Assets," for additional information.

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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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