COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS

6 Months Ended

Jun. 30, 2015

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS

12.COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS

Eligible employees at certain of the ARLP Partnership’s mining operations participate in a defined benefit plan (the “Pension Plan”) sponsored by the ARLP Partnership.  The benefit formula for the Pension Plan is a fixed dollar unit based on years of service.  Components of the net periodic benefit cost for each of the periods presented are as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Service cost	$	619		$	544		$	1,237		$	1,087
Interest cost	1,074			1,018			2,148			2,037
Expected return on plan assets	(1,394		)	(1,337		)	(2,795		)	(2,738		)
Amortization of net loss (1)	835			162			1,677			387
Net periodic benefit cost	$	1,134		$	387		$	2,267		$	773

(1) Amortization of net actuarial loss is included in the operating expenses line item within our condensed consolidated statements of income.

We previously disclosed in our financial statements for the year ended December 31, 2014 that the ARLP Partnership expected to contribute $3.1 million to the Pension Plan in 2015.  During the six months ended June 30, 2015, the ARLP Partnership made a contribution payment of $0.6 million to the Pension Plan for the 2014 plan year and $0.7 million for the 2015 plan year.  On July 15, 2015, the ARLP Partnership made a contribution payment of $0.7 million for the 2015 plan year.