WORKERS' COMPENSATION AND PNEUMOCONIOSIS (Tables)

9 Months Ended

Sep. 30, 2020

Accrued Workers Compensation And Pneumoconiosis Benefits

Reconciliation of changes in workers' compensation liability


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019

	(in thousands)
Beginning balance	$	54,478	$	53,425	$	53,384	$	49,539
Accruals increase		1,599		2,395		3,539		6,603
Payments		(2,123)		(2,663)		(6,686)		(8,588)
Interest accretion		319		402		958		1,204
Valuation loss (1)		—		—		3,078		4,801
Ending balance	$	54,273	$	53,559	$	54,273	$	53,559

(1)

Our estimate of the liability for the present value of current workers′ compensation benefits is based on our actuarial calculations. Our actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claims development patterns, mortality, medical costs and interest rates. We conducted a 2020 mid-year review of our actuarial assumptions which resulted in a valuation loss due to unfavorable changes in claims development and a decrease in the discount rate from 2.81% to 2.05%. Our 2019 mid-year actuarial review resulted in a valuation loss due to unfavorable changes in claims development and a decrease in the discount rate from 3.89% to 3.06%.

Pneumoconiosis benefits

Accrued Workers Compensation And Pneumoconiosis Benefits

Components of net periodic benefit cost


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019

	(in thousands)
Service cost	$	882	$	656	$	2,643	$	1,947
Interest cost (1)		750		761		2,249		2,283
Net amortization (1)		(172)		(1,145)		(515)		(3,436)
Net periodic benefit cost	$	1,460	$	272	$	4,377	$	794

(1)	Interest cost and net amortization are included in the Other expense line item within our condensed consolidated statements of income.