WORKERS' COMPENSATION AND PNEUMOCONIOSIS (Tables)

6 Months Ended

Jun. 30, 2020

Accrued Workers Compensation And Pneumoconiosis Benefits

Reconciliation of changes in workers' compensation liability

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
	(in thousands)
Beginning balance	$	52,880	$	48,428	$	53,384	$	49,539
Accruals increase		192		2,247		1,940		4,208
Payments		(1,992)		(2,452)		(4,563)		(5,925)
Interest accretion		320		401		639		802
Valuation loss (1)		3,078		4,801		3,078		4,801
Ending balance	$	54,478	$	53,425	$	54,478	$	53,425

(1) Our estimate of the liability for the present value of current workers′ compensation benefits is based on our actuarial calculations.  Our actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claims development patterns, mortality, medical costs and interest rates.  We conducted a mid-year 2020 review of our actuarial assumptions which resulted in a valuation loss in 2020 due to unfavorable changes in claims development and a decrease in the discount rate from 2.81% to 2.05%.  Our mid-year 2019 actuarial review resulted in a valuation loss in 2019 due to unfavorable changes in claims development and a decrease in the discount rate from 3.89% to 3.06%.

Pneumoconiosis benefits

Accrued Workers Compensation And Pneumoconiosis Benefits

Components of net periodic benefit cost

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
	(in thousands)
Service cost	$	883	$	646	$	1,761	$	1,291
Interest cost (1)		749		762		1,499		1,522
Net amortization (1)		(171)		(1,146)		(343)		(2,291)
Net periodic benefit cost	$	1,461	$	262	$	2,917	$	522

(1) Interest cost and net amortization are included in the Other expense line item within our condensed consolidated statements of income.