Components Of Pension Plan Net Periodic Benefit Costs

6 Months Ended

Jun. 30, 2011

Components Of Pension Plan Net Periodic Benefit Costs

Components Of Pension Plan Net Periodic Benefit Costs

10. 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,
	2011			2010			2011			2010
Service cost	$	618		$	713		$	1,236		$	1,426
Interest cost		788			840			1,576			1,679
Expected return on plan assets		(973	)		(924	)		(1,945	)		(1,846	)
Amortization of net loss		122			269			244			538
Net periodic benefit cost	$	555		$	898		$	1,111		$	1,797

We previously disclosed in our financial statements for the year ended December 31, 2010 that the ARLP Partnership expected to contribute $5.0 million to the Pension Plan in 2011. During the six months ended June 30, 2011, the ARLP Partnership made contribution payments of $2.6 million for the 2010 plan year and $0.8 million for the 2011 plan year. On July 15 2011, we made a payment of $0.8 million for the 2011 plan year. The ARLP Partnership will make an additional quarterly contribution of $0.8 million for the 2011 plan year and therefore, expects to contribute a total of approximately $5.0 million to the Pension Plan in 2011 for the 2010 and 2011 plan years.