17.	Postretirement Medical Benefits

We provided, and continue to provide, certain medical and dental care benefits to eligible retired U.S. and Canadian employees. Under the U.S. plan, for non-union employees, a Health Reimbursement Account (“HRA”) was established beginning January 1, 2009 for each qualified U.S. retiree. Annually, and through the year ended December 31, 2016, a fixed amount was 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 were funded using insurance contracts. Premiums under the insurance contracts were funded on a pay-as-you-go basis. The postretirement medical plans to substantially all eligible U.S. and Canadian employees terminated on December 31, 2016. For U.S. plan participants, balances in the HRA accounts at December 31, 2016 remained available for use until December 31, 2018. Any remaining balance at December 31, 2018 was forfeited. Postretirement medical and dental benefits to eligible employees will continue to be provided to the 20 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 plan as of and for the years ended December 31, 2018 and 2017, were as follows (in thousands):

	Postretirement
	Benefit Plan
	U.S. Plan
	2018			2017
Change in benefit obligation:
Benefit obligation at beginning of year	$	672		$	1,574
Service cost		—			—
Interest cost		6			8
Benefits paid		(201	)		(429	)
Actuarial gain		(247	)		(481	)
Benefit obligation at end of year	$	230		$	672
(Unfunded) status of the plan	$	(230	)	$	(672	)

The benefit obligation as of December 31, 2018 relates solely to postretirement medical and dental benefits to the 20 eligible former union employees in the U.S.

	Postretirement
	Benefit Plan
	U.S. Plan
	2018			2017
Amounts recognized in the balance sheet:
Accrued postretirement benefit liabilities	$	230		$	672
Accumulated other comprehensive (income) loss (pre-tax) related to:
Unrecognized net actuarial losses (gains)		(173	)		(194	)

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

	December 31,
U.S. postretirement plan:	2018			2017 (1)			2016 (1)
Service cost	$	—		$	—		$	—
Interest cost		6			8			11
Actuarial net (gain) loss		(268	)		(661	)		809
Net periodic benefit cost (credit)	$	(262	)	$	(653	)	$	820

Canadian postretirement plan:
Service cost	$	—		$	—		$	—
Interest cost		—			—			2
Amortization of prior service cost		—			—			(54	)
Actuarial net gain		—			—			(46	)
Net periodic benefit cost (credit)	$	—		$	—		$	(98	)
Total net periodic benefit cost (credit)	$	(262	)	$	(653	)	$	722

(1)

Net periodic benefit cost (credit) has been reclassified from selling, general and administrative expenses to other non-operating income (expense), net on our consolidated statement of operations upon adoption of ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, see Note 1, “Summary of Significant Accounting Policies” for additional information.

The estimated net gain that is expected to be amortized from accumulated other comprehensive income into postretirement medical benefits cost during 2019 is not material.

Actuarial discount rate assumptions used to determine costs and benefit obligations related to our U.S. and Canadian postretirement plans reflect the short term nature of the plans as the plans to substantially all eligible employees terminated on December 31, 2016. The actuarial discount rate used for the U.S. postretirement plan was 0% for each of December 31, 2018, 2017 and 2016; and 3% for the Canadian postretirement plan as of December 31, 2016. The Company’s discount rates were determined considering the short term nature of the plans, and the current yield curves for high quality, long-term fixed income instruments.

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

2019	$	39
2020		36
2021		32
2022		29
2023		25
Years 2024 – 2028		76

A one-percentage-point change in assumed health care cost trend rates would not have a material impact on our plans for 2019.