Restructuring Charges

3 Months Ended

Mar. 31, 2016

Restructuring Charges [Abstract]

Restructuring Charges

4.Restructuring Charges

On September 8, 2015, the Company announced that it plans to consolidate its manufacturing network in Brazil.  Plants in Trombudo Central and Conchal will be closed and production will be moved to plants in Balsa Nova and Mogi Guaçu, respectively.  The consolidation should be complete by the end of 2016.  The Company did not record any restructuring charges in the first quarter of 2016.  Additional restructuring costs, although not expected to be significant, could be incurred in the future as part of the plant shutdowns.  

In the first quarter of 2015, the Company recorded a pre-tax restructuring charge of $10 million for employee severance-related costs associated with the Penford acquisition.

A summary of the Company’s severance accrual at March 31, 2016 is as follows (in millions):

Balance in severance accrual at December 31, 2015	$	10
Payments made to terminated employees		(2)
Balance in severance accrual at March 31, 2016	$	8

The severance accrual is expected to be paid within the next twelve months.