COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS

6 Months Ended

Jun. 30, 2016

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:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
			(in thousands)
Service cost	$	598	$	619	$	1,196	$	1,237
Interest cost	1,131		1,074		2,263		2,148
Expected return on plan assets	(1,287)		(1,394)		(2,574)		(2,795)
Amortization of net loss (1)	789		835		1,578		1,677
Net periodic benefit cost	$	1,231	$	1,134	$	2,463	$	2,267

(1) Amortization of net actuarial loss is included in the Operating expenses (excluding depreciation, depletion and amortization) line item within our condensed consolidated statements of income.

During the six months ended June 30, 2016, the ARLP Partnership made contribution payments of $0.6 million to the Pension Plan for the 2015 plan year and $0.7 million to the Pension Plan for the 2016 plan year.  On July 15, 2016, the ARLP Partnership made a contribution payment of $0.7 million for the 2016 plan year.