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WORKERS' COMPENSATION AND PNEUMOCONIOSIS (Tables)
 9 Months Ended
Sep. 30, 2017
Accrued Workers Compensation And Pneumoconiosis Benefits  
Reconciliation of changes in workers' compensation liability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Three Months Ended

 

Nine Months Ended

 

 

 

September 30, 

 

September 30, 

 

 

 

2017

    

2016

    

2017

    

2016

 

 

 

(in thousands)

 

Beginning balance

 

$

59,981

 

$

56,403

 

$

48,131

 

$

54,558

 

Accruals increase

 

 

1,999

 

 

2,480

 

 

16,673

 

 

7,904

 

Payments

 

 

(2,357)

 

 

(2,238)

 

 

(7,799)

 

 

(8,226)

 

Interest accretion

 

 

421

 

 

492

 

 

1,261

 

 

1,476

 

Valuation loss (1)

 

 

 —

 

 

 —

 

 

1,778

 

 

1,425

 

Ending balance

 

$

60,044

 

$

57,137

 

$

60,044

 

$

57,137

 

(1)

The liability for the estimated present value of current workers′ compensation benefits is based on the ARLP Partnership's actuarial estimates.  The ARLP Partnership's actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claim development patterns, mortality, medical costs and interest rates.  The ARLP Partnership conducted a mid-year review of its actuarial assumptions which resulted in a valuation loss in 2017 primarily attributable to a decrease in the discount rate used to calculate the estimated present value of future obligations from 3.52% at December 31, 2016 to 3.38% at June 30, 2017 and unfavorable changes in claims development.  The ARLP Partnership's mid-year 2016 actuarial review resulted in a valuation loss primarily attributable to a decrease in the discount rate used to calculate the estimated present value of future obligations from 3.63% at December 31, 2015 to 2.89% at June 30, 2016, partially offset by favorable changes in claims development.
Pneumoconiosis benefits  
Accrued Workers Compensation And Pneumoconiosis Benefits  
Components of net periodic benefit cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Three Months Ended

 

Nine Months Ended

 

 

 

September 30, 

 

September 30, 

 

 

 

2017

    

2016

    

2017

    

2016

 

 

 

(in thousands)

 

Service cost

 

$

580

 

$

644

 

$

1,682

 

$

1,936

 

Interest cost

 

 

649

 

 

627

 

 

1,906

 

 

1,880

 

Amortization of net actuarial gain (1)

 

 

(479)

 

 

(660)

 

 

(1,613)

 

 

(1,982)

 

Net periodic benefit cost

 

$

750

 

$

611

 

$

1,975

 

$

1,834

 

(1)

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