COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS

6 Months Ended

Jun. 30, 2017

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 Pension Plan is currently closed to new applicants and effective January 31, 2017, participants within the Pension Plan ("Participants") are no longer receiving benefit accruals for service.  The amendment did not affect pension benefits accrued prior to January 31, 2017.  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				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
	(in thousands)
Service cost	$	—	$	598	$	—	$	1,196
Interest cost		1,135		1,131		2,270		2,263
Expected return on plan assets		(1,251)		(1,287)		(2,503)		(2,574)
Amortization of prior service cost (1)		47		—		94		—
Amortization of net loss (1)		772		789		1,545		1,578
Net periodic benefit cost	$	703	$	1,231	$	1,406	$	2,463

(1) Amortization of prior service cost and 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, 2017, the ARLP Partnership made contribution payments of $0.7 million to the Pension Plan for the 2016 plan year and $0.6 million for the 2017 plan year.  On July 17, 2017, the ARLP Partnership made a contribution payment of $0.6 million for the 2017 plan year.