Workers' Compensation And Pneumoconiosis

6 Months Ended

Jun. 30, 2011

Workers' Compensation And Pneumoconiosis

Workers' Compensation And Pneumoconiosis

8. WORKERS' COMPENSATION AND PNEUMOCONIOSIS

The changes in the workers' compensation liability (including current and long-term liability balances) for each of the periods presented were as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Beginning balance	$	70,965		$	66,371		$	67,687		$	63,220
Accruals increase		5,557			5,005			11,114			9,811
Payments		(2,801	)		(2,293	)		(6,028	)		(4,818	)
Interest accretion		794			833			1,587			1,666
Valuation loss		—			134			155			171
Ending balance	$	74,515		$	70,050		$	74,515		$	70,050

Pneumoconiosis

The Patient Protection and Affordable Care Act, which was signed into law by President Obama on March 23, 2010, amended previous legislation related to coal workers' pneumoconiosis, or black lung, providing automatic extension of awarded lifetime benefits to surviving spouses and providing changes to the legal criteria used to assess and award claims. The impact of these changes to the ARLP Partnership's current population of beneficiaries and claimants resulted in an estimated $8.3 million increase to its black lung obligation at December 31, 2010. The ARLP Partnership recorded this estimate as an increase to its black lung liability and a decrease to its actuarial gain included in accumulated other comprehensive income on our December 31, 2010 condensed consolidated balance sheet. The increase to the ARLP Partnership's obligation excludes the impact of potential re-filing of closed claims and potential filing rates for employees who terminated more than seven years ago as the ARLP Partnership does not have sufficient information to determine what, if any, claims will be filed until regulations are issued. The ARLP Partnership will continue to evaluate the impact of these changes on such claims and record any necessary changes in the period in which the impact is estimable. For more information, please read "Part I. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Other—Health Care Reform" of this Quarterly Report on Form 10-Q.