4. Impairment and Restructuring Charges

For the three months ended March 31, 2017, the Company recorded $10 million of net restructuring charges. During the first quarter of 2017, the Company implemented an organizational restructuring effort in Argentina by notifying both the Argentinian Labor Ministry and the local labor union of a planned reduction in workforce in order to achieve a more competitive cost position. On April 28, 2017, the union notified the Company of their intent to strike. We will continue to work with both the labor union and the Argentinian Labor Ministry on this matter. The Company recorded total pre-tax restructuring related charges in Argentina of $11 million for employee severance-related costs. Additionally, the Company recorded a $1 million reduction in expected employee severance-related charges associated with the execution of global information technology (“IT”) outsourcing contracts. The Company expects to incur approximately $1 million of additional restructuring costs associated with the IT outsourcing project through the third quarter 2017.

A summary of the Company’s severance accrual at March 31, 2017 is as follows (in millions):


Balance in severance accrual at December 31, 2016	$	7
Restructuring charge for employee severance costs:
Argentina employee-related severance		11
IT transformation		(1)
Payments made to terminated employees		(2)
Balance in severance accrual at March 31, 2017	$	15

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