14.	Postretirement Medical Benefits

We provide certain medical and dental care benefits to eligible retired U.S. and Canadian employees. Eligibility for U.S. employees is limited to employees hired before 1995. Under the U.S. plan, a Health Reimbursement Account (“HRA”) was established beginning January 1, 2009 for each qualified U.S. retiree. Monthly, a fixed amount is credited into the HRA to cover both medical and dental costs for all current and future eligible retirees. Under the Canadian plan, retiree medical and dental benefits are funded in a pay-as-you-go basis. The postretirement medical plans to substantially all eligible U.S. and Canadian employees will terminate on December 31, 2016. There will be no change to the eligibility or plan provided to the 39 former union employees.

The benefit obligation, funded status, and amounts recognized in the consolidated financial statements for our postretirement medical benefit plans as of and for the years ended December 31, 2015 and 2014, were as follows (in thousands):

	Postretirement Benefit Plans
	U.S. Plan						Canadian Plan
	2015			2014			2015			2014
Change in benefit obligation:
Benefit obligation at beginning of year	$	4,192		$	4,960		$	110		$	126
Service cost		—			1			—			—
Interest cost		24			26			3			4
Benefits paid		(833	)		(772	)		(16	)		(26	)
Actuarial loss (gain)		(455	)		(23	)		(7	)		17
Translation adjustment		—			—			(16	)		(11	)
Benefit obligation at end of year	$	2,928		$	4,192		$	74		$	110
(Unfunded) status of the plans	$	(2,928	)	$	(4,192	)	$	(74	)	$	(110	)

	Postretirement Benefit Plans
	U.S. Plan				Canadian Plan
	2015		2014		2015			2014
Amounts recognized in the balance sheet:
Accrued postretirement benefit liabilities	$	2,928	$	4,192	$	74		$	110
Accumulated other comprehensive (income) loss (pre-tax) related to:
Unrecognized net actuarial losses (gains)		970		2,973		(36	)		(65	)
Unrecognized prior service cost (credit)		—		—		(52	)		(201	)

The estimated net loss and prior service cost (credit) that is expected to be amortized from accumulated other comprehensive income into postretirement medical benefits cost during 2016 are $1.1 million and $(0.1) million, respectively.

Net periodic benefit cost related to our plans includes the following components (in thousands):

	December 31,
U.S. postretirement plan:	2015			2014			2013
Service cost	$	—		$	1		$	1
Interest cost		24			26			33
Amortization of prior service cost		—			(2,888	)		(4,206	)
Actuarial net loss		1,548			2,092			2,548
Net periodic benefit cost (credit)	$	1,572		$	(769	)	$	(1,624	)

Canadian postretirement plan:
Service cost	$	—		$	—		$	—
Interest cost		3			4			5
Amortization of prior service cost		(112	)		(129	)		(140	)
Actuarial net loss		(22	)		(45	)		(115	)
Net periodic benefit cost (credit)	$	(131	)	$	(170	)	$	(250	)
Total net periodic benefit cost (credit)	$	1,441		$	(939	)	$	(1,874	)

Actuarial assumptions used to determine costs and benefit obligations related to our U.S. postretirement plan are as follows:

	December 31,
	2015			2014			2013
Discount rate		0.0	%		0.55	%		0.45	%

Actuarial assumptions used to determine costs and benefit obligations related to our Canadian postretirement plan are as follows:

	December 31,
	2015			2014			2013
Discount rates		3.00	%		3.00	%		3.50	%
Current medical cost trend rate		5.71	%		6.43	%		7.14	%
Ultimate medical cost trend rate		5	%		5	%		5	%
Year trend rate declines to ultimate		2017			2017			2017

The Company’s discount rates are determined by considering current yield curves representing high quality, long-term fixed income instruments. We set our discount rate for the U.S. plan based on a review of the Citigroup Pension Discount Curve and the duration of expected payments in the plan. We set our discount rate for the Canadian plan based upon similar benchmarks in Canada.

The following benefit payments which reflect expected future service, as appropriate, are expected to be paid (in thousands):

2016	$	2,568
2017		63
2018		59
2019		54
2020		50
Years 2021 – 2025		181

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects for 2016 (in thousands):

	1-Percentage- Point Increase		1-Percentage- Point Decrease
Effect on total of service and interest cost components	$	1	$	(1	)
Effect on postretirement benefit obligation		26		(24	)