EMPLOYEE BENEFIT PLANS (Tables) - ARLP - Pension Plan

12 Months Ended

Dec. 31, 2016


	2016		2015
	(dollars in thousands)
Change in benefit obligations:
Benefit obligations at beginning of year	$	107,476	$	109,626
Service cost		2,205		2,473
Interest cost		4,493		4,296
Actuarial (gain) loss		901		(6,420)
Benefits paid		(3,091)		(2,499)
Plan amendments		1,498		—
Benefit obligations at end of year		113,482		107,476

Change in plan assets:
Fair value of plan assets at beginning of year		68,445		69,521
Employer contribution		2,608		3,116
Actual return on plan assets		3,450		(1,693)
Benefits paid		(3,091)		(2,499)
Fair value of plan assets at end of year		71,412		68,445
Funded status at the end of year	$	(42,070)	$	(39,031)

Amounts recognized in balance sheet:
Non-current liability	$	(42,070)	$	(39,031)
	$	(42,070)	$	(39,031)

Amounts recognized in accumulated other comprehensive income consists of:
Prior service credit	$	(1,498)	$	—
Net actuarial loss		(38,424)		(38,787)
	$	(39,922)	$	(38,787)

Weighted-average assumptions to determine benefit obligations as of December 31,
Discount rate		4.06%		4.27%
Expected rate of return on plan assets		7.00%		7.50%

Weighted-average assumptions used to determine net periodic benefit cost for the year ended December 31,
Discount rate		4.27%		3.92%
Expected return on plan assets		7.50%		8.00%

Schedule of long-term rate of return assumptions


		Expected long-
	Asset allocation	term rate of
As of December 31, 2016	assumption	return
Domestic equity securities	70%	6.4%
Foreign equity securities	10%	6.8%
Fixed income securities/cash	20%	3.0%
	100%

Components of net periodic benefit cost


	2016		2015		2014
	(in thousands)
Components of net periodic benefit cost:
Service cost	$	2,205	$	2,473	$	2,174
Interest cost		4,493		4,296		4,074
Expected return on plan assets		(5,138)		(5,590)		(5,475)
Amortization of net loss		2,952		3,354		773
Net periodic benefit cost	$	4,512	$	4,533	$	1,546

Schedule of other changes in plan assets and benefit obligation recognized in accumulated other comprehensive income


	2016		2015
	(in thousands)
Other changes in plan assets and benefit obligation recognized in accumulated other comprehensive income:
Prior service credit	$	(1,498)	$	—
Net actuarial loss		(2,589)		(863)
Reversal of amortization item:
Net actuarial loss		2,952		3,354
Total recognized in accumulated other comprehensive income (loss)		(1,135)		2,491
Net periodic benefit cost		(4,512)		(4,533)
Total recognized in net periodic benefit cost and accumulated other comprehensive loss	$	(5,647)	$	(2,042)

Schedule of estimated future benefit payments


Year Ended
December 31,	(in thousands)

2017	$	3,332
2018		3,733
2019		4,112
2020		4,531
2021		4,889
2022-2026		28,766
	$	49,363

Schedule of asset allocation guidelines, actual asset allocations and fair value of Pension Plan assets

Total account performance is reviewed at least annually, using a dynamic benchmark approach to track investment performance. General asset allocation guidelines at December 31, 2016 are as follows:


	Percentage of Total Portfolio
	Minimum	Target	Maximum

Equity securities	45%	62%	80%
Fixed income securities	10%	33%	55%
Real estate	0%	5%	10%

Equity securities include domestic equity securities, developed international securities, emerging markets equity securities and real estate investment trust. Fixed income securities include domestic and international investment grade fixed income securities, high yield securities and emerging markets fixed income securities. Fixed income futures may also be utilized within the fixed income securities asset allocation.

The following information discloses the fair values of the Pension Plan assets, by asset category, for the periods indicated:


	December 31, 2016								December 31, 2015
	Level 1 (a)		Level 2 (a)		Level 3 (a)		Total		Level 1 (a)		Level 2 (a)		Level 3 (a)		Total
		(in thousands)
Cash and cash equivalents	$	1,137	$	—	$	—	$	1,137	$	883	$	—	$	—	$	883
Equity securities (b):
U.S. large-cap growth		—		—		—		—		17,977		—		—		17,977
U.S. large-cap value		—		—		—		—		17,635		—		—		17,635
U.S. small/mid-cap blend		—		—		—		—		7,609		—		—		7,609
International large-cap core		—		—		—		—		3,257		—		—		3,257
Fixed income securities:
U.S. Treasury securities (c)		—		—		—		—		1,234		—		—		1,234
Corporate bonds (d)		—		—		—		—		—		1,938		—		1,938
Preferred stock		—		—		—		—		—		—		—		—
Taxable municipal bonds (d)		—		—		—		—		—		182		—		182
International bonds (d)		—		—		—		—		—		319		—		319
Equity mutual funds (e):
U.S. mid-cap growth		—		—		—		—		—		4,948		—		4,948
International		—		—		—		—		—		3,322		—		3,322
Fixed income mutual funds (e):
Corporate bond		—		—		—		—		—		4,668		—		4,668
Mortgage backed-securities		—		—		—		—		—		1,277		—		1,277
Short term investment grade bond		—		—		—		—		—		1,322		—		1,322
Intermediate investment grade bond		—		—		—		—		—		801		—		801
High yield bond		—		—		—		—		—		693		—		693
International bond		—		—		—		—		—		226		—		226
Stock market index options (f):
Puts		—		—		—		—		143		—		—		143
Calls		—		—		—		—		(54)		—		—		(54)
Accrued income (g)		—		—		—		—		—		65		—		65
	$	1,137	$	—	$	—		1,137	$	48,684	$	19,761	$	—		68,445

Commingled investment funds measured at net asset value (h):
Equities - U.S. large-cap								21,082								—
Equities - U.S. small-cap								6,531								—
Equities - International developed markets								11,074								—
Equities - International emerging markets								4,614								—
Fixed income - Investment grade								16,823								—
Fixed income - High yield								4,543								—
Real estate								4,259								—
Other								1,349								—
Total							$	71,412							$	68,445

(a)

See Note 2 – Summary of Significant Accounting Policies – Fair Value Measurements for more information regarding the definitions of fair value hierarchy levels.

(b)

Equity securities include investments in publicly traded common stock and preferred stock. Publicly-traded common stocks are traded on a national securities exchange and investments in common and preferred stocks are valued using quoted market prices multiplied by the number of shares owned.

(c)

U.S. Treasury securities include agency and treasury debt. These investments are valued using dealer quotes in an active market.

(d)

Bonds are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes in active and non-active markets, benchmark yields and securities, reported trades, issuer spreads, and/or other applicable reference data. The corporate bonds and notes category is primarily comprised of U.S. dollar denominated, investment grade securities. Less than 5 percent of the securities have a rating below investment grade.

(e)

Mutual funds are valued daily in actively traded markets by an independent custodian for the investment manager. For purposes of calculating the value, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on a basis of last reported sales prices, or if no sales are reported, based on quotes obtained from a quotation reporting system, established market makers, or pricing services. Investments initially valued in currencies other than the U.S. dollars are converted to the U.S. dollar using exchange rates obtained from pricing services.

(f)

Options are valued utilizing quotes in active markets.

(g)

Accrued income represents dividends declared, but not received, on equity securities owned at December 31, 2016 and 2015.

(h)

Investments measured at fair value using the net asset value per share (or its equivalent) have not been classified within the fair value hierarchy. The fair values of all commingled investment funds are determined based on the net asset values per unit of each of the funds. The net asset values per unit represent the aggregate value of the fund's assets at fair value less liabilities, divided by the number of units outstanding.