Post-retirement Plans

In connection with our PCLI acquisition, we agreed to establish employee benefit plans including union and non-union pension plans and a post-retirement plan for PCLI employees that were previously covered under legacy Suncor plans.

Our agreement with Suncor also provides that pension assets related to the union and non-union pension plans will be transferred to a pension trust which will be established by us. The amount of assets to be transferred will be agreed by Suncor and us based on actuarial valuations and a formula specified in the SPA.

Our purchase price allocation as of February 1, 2017 included estimates of the amount of pension benefit obligation and the pension assets to be transferred based on actuarial estimates and are as follows:



	February 1, 2017
	(in thousands)
Projected benefit obligation	$	52,851
Estimated pension assets	54,156
Estimated funded status	$	1,305

The net periodic pension expense of these plans consisted of the following components:



	Three Months Ended September 30, 2017			February 1, 2017 to September 30, 2017
	(in thousands)
Service cost - benefit earned during the period	$	1,013		$	2,596
Interest cost on projected benefit obligations	556			1,424
Expected return on plan assets	(802		)	(2,053		)
Net periodic pension expense	$	767		$	1,967

We have a post-retirement healthcare and other benefits plan that is available to certain of our non-PCLI employees who satisfy certain age and service requirements. The net periodic benefit credit of this plan consisted of the following components:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(In thousands)
Service cost – benefit earned during the period	$	300		$	324		$	901		$	972
Interest cost on projected benefit obligations	170			197			509			591
Amortization of prior service credit	(870		)	(871		)	(2,610		)	(2,613		)
Net periodic post-retirement credit	$	(400	)	$	(350	)	$	(1,200	)	$	(1,050	)

In addition, we established a post-retirement healthcare and other benefits plan for our PCLI employees. Our purchase price allocation as of February 1, 2017 included estimates of the amount of projected benefit obligations of $8.6 million. The net periodic benefit expense related to this plan was $0.2 million and $0.4 million for the three and the eight months ended September 30, 2017, respectively.