ACCRUED WORKERS' COMPENSATION AND PNEUMOCONIOSIS BENEFITS (Tables)

12 Months Ended

Dec. 31, 2013

Accrued Workers Compensation And Pneumoconiosis Benefits

Components of Black Lung and Workers Compensation Expense

The black lung and workers’ compensation expense consists of the following components for the year ended December 31, 2013, 2012 and 2011 (in thousands):

	2013		2012		2011
Black lung benefits:
Service cost	$	3,810	$	3,758	$	3,345
Interest cost	2,253		2,372		2,382
Net amortization	670		776		(223)
Total black lung	6,733		6,906		5,504
Workers’ compensation (benefit) expense	(110)		17,572		18,996
Total expense	$	6,623	$	24,478	$	24,500

Reconciliation of Changes in Workers Compensation Liability

The following is a reconciliation of the changes in workers’ compensation liability (including current and long-term liability balances) at December 31, 2013 and 2012 (in thousands):

	2013		2012
Beginning balance	$	77,046	$	73,201
Accruals	18,544		24,812
Payments	(10,639)		(10,477)
Interest accretion	2,481		2,739
Valuation gain	(24,523)		(13,229)
Ending balance	$	62,909	$	77,046

Summary of Amounts Recognized in Balance Sheets for Black Lung and Workers Compensation Benefits

Summarized below is information about the amounts recognized in the accompanying consolidated balance sheets for black lung and workers’ compensation benefits at December 31, 2013 and 2012 (in thousands):

	2013		2012
Black lung claims	$	49,560	$	60,991
Workers’ compensation claims	62,909		77,046
Total obligations	112,469		138,037
Less current portion	(9,065)		(9,320)
Non-current obligations	$	103,404	$	128,717

Black Lung

Accrued Workers Compensation And Pneumoconiosis Benefits

Components of Black Lung Benefit Obligation Recognized in Accumulated Other Comprehensive Income

The following is a reconciliation of the changes in the black lung benefit obligation recognized in AOCI for the years ended December 31, 2013 and 2012 (in thousands):

	2013		2012
Net actuarial gain	$	16,750	$	2,156
Reversal of amortization item:
Net actuarial loss	670		776
Total recognized in accumulated other comprehensive income	$	17,420	$	2,932

Reconciliation of Changes in Black Lung Benefit Obligation

The following is a reconciliation of the changes in black lung benefit obligations at December 31, 2013 and 2012 (in thousands):

	2013		2012
Benefit obligations at beginning of year	$	60,991	$	55,605
Service cost	3,810		3,758
Interest cost	2,253		2,372
Actuarial gain	(16,750)		(2,156)
Benefits and expenses paid	(744)		(715)
Acquisition of Onton (Note 3)	-		2,127
Benefit obligations at end of year	$	49,560	$	60,991
Amount recognized in accumulated other comprehensive income consist of:
Net actuarial (gain) loss	$	(8,511)	$	8,908