Restructuring Charges

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Asset Impairment Charges

Restructuring

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 the three months ended March 31, 2023, we incurred restructuring costs 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, improve our operational efficiency and effectiveness, strengthen our competitive positioning and better serve our customers. The charges included the reduction of headcount across all segments.

During the three ended March 31, 2022, we incurred restructuring charges that were less than $1 million.

The following table presents the components of restructuring expense and asset impairment charges:


	Three Months Ended
	March 31,
(in millions)	2023		2022
By component:
Severance and other charges	$	6	$	—




Total restructuring costs	$	6	$	—
Asset impairment charges	2		—
Total restructuring and asset impairment charges	$	8	$	—

By segment:
Water Infrastructure	$	2	$	—
Applied Water	1		—
Measurement & Control Solutions	5		—

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, 2023 and 2022:


(in millions)	2023		2022
Restructuring accruals - January 1	$	10	$	7
Restructuring costs, net	6		—
Cash payments	(6)		(3)
Asset impairment	—		—

Restructuring accruals - March 31	$	10	$	4

By segment:
Water Infrastructure	$	1	$	—
Applied Water	—		—
Measurement & Control Solutions	4		3
Regional selling locations (a)	3		1
Corporate and other	2		—

(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 2023 and thereafter:


(in millions)	Water Infrastructure		Applied Water		Measurement & Control Solutions		Corporate		Total







Actions Commenced in 2023:
Total expected costs	$	1	$	1	$	4	$	—	$	6

Costs incurred during Q1 2023	1		1		3		—		5


Total expected costs remaining	$	—	$	—	$	1	$	—	$	1

During 2023, we also incurred charges of $1 million within the Water Infrastructure segment related to actions commenced in prior years.

The Water Infrastructure, Applied Water and Measurement & Control Solutions actions commenced in 2023 consist primarily of severance charges. The Water Infrastructure and Applied Water actions are complete and the Measurement & Control Solutions actions are expected to continue through the end of 2023.

Asset Impairment

During the first quarter of 2023, 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 and we therefore recognized an impairment charge of $2 million. Refer to Note 8, "Goodwill and Other Intangible Assets," for additional information.