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. Annually, 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 using insurance contracts. Premiums under the insurance contracts are funded on 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. For U.S. plan participants balances in the HRA accounts at December 31, 2016 will remain available for use until December 31, 2018. Any remaining balance at December 31, 2018 will be forfeited. There will be no change to the eligibility or plan provided to the 39 former union employees in the U.S.

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, 2016 and 2015, were as follows (in thousands):

	Postretirement Benefit Plans
	U.S. Plan						Canadian Plan
	2016			2015			2016			2015
Change in benefit obligation:
Benefit obligation at beginning of year	$	2,928		$	4,192		$	74		$	110
Service cost		—			—			—			—
Interest cost		11			24			2			3
Benefits paid		(534	)		(833	)		(17	)		(16	)
Actuarial loss (gain)		(831	)		(455	)		(9	)		(7	)
Translation adjustment & other		—			—			(50	)		(16	)
Benefit obligation at end of year	$	1,574		$	2,928		$	—		$	74
(Unfunded) status of the plans	$	(1,574	)	$	(2,928	)	$	—		$	(74	)

	Postretirement Benefit Plans
	U.S. Plan					Canadian Plan
	2016			2015		2016		2015
Amounts recognized in the balance sheet:
Accrued postretirement benefit liabilities	$	1,574		$	2,928	$	—	$	74
Accumulated other comprehensive (income) loss (pre-tax) related to:
Unrecognized net actuarial losses (gains)		(374	)		970		—		(36	)
Unrecognized prior service cost (credit)		—			—		—		(52	)

The estimated net gain that is expected to be amortized from accumulated other comprehensive income into postretirement medical benefits cost during 2017 is $0.2 million.

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

	December 31,
U.S. postretirement plan:	2016			2015			2014
Service cost	$	—		$	—		$	1
Interest cost		11			24			26
Amortization of prior service cost		—			—			(2,888	)
Actuarial net loss		809			1,548			2,092
Net periodic benefit cost (credit)	$	820		$	1,572		$	(769	)

Canadian postretirement plan:
Service cost	$	—		$	—		$	—
Interest cost		2			3			4
Amortization of prior service cost		(54	)		(112	)		(129	)
Actuarial net gain		(46	)		(22	)		(45	)
Net periodic benefit cost (credit)	$	(98	)	$	(131	)	$	(170	)
Total net periodic benefit cost (credit)	$	722		$	1,441		$	(939	)

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

	December 31,
	2016			2015			2014
Discount rate		0.0	%		0.0	%		0.55	%

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

	December 31,
	2016			2015			2014
Discount rates		3.00	%		3.00	%		3.00	%
Current medical cost trend rate		N/A			5.71	%		6.43	%
Ultimate medical cost trend rate		N/A			5	%		5	%
Year trend rate declines to ultimate		N/A			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):

2017	$	1,240
2018		56
2019		51
2020		46
2021		41
Years 2022 – 2026		133

A one-percentage-point change in assumed health care cost trend rates would not have a material impact on our plans for 2017.