WORKERS' COMPENSATION AND PNEUMOCONIOSIS (Tables)

9 Months Ended

Sep. 30, 2021

Accrued Workers Compensation And Pneumoconiosis Benefits

Reconciliation of changes in workers' compensation liability


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020

	(in thousands)
Beginning balance	$	52,059	$	54,478	$	54,739	$	53,384
Accruals increase		1,674		1,599		4,911		3,539
Payments		(2,939)		(2,123)		(7,914)		(6,686)
Interest accretion		232		319		695		958
Valuation loss (gain) (1)		—		—		(1,405)		3,078
Ending balance	$	51,026	$	54,273	$	51,026	$	54,273

(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. The valuation gain in 2021 is due to an increase in the discount rate from 1.95% on December 31, 2020 to 2.34% on June 30, 2021. We conducted a mid-year 2020 review of our actuarial assumptions, which resulted in a valuation loss in 2020 due to unfavorable changes in claims development and a decrease in the discount rate from 2.81% on December 31, 2019 to 2.05% on June 30, 2020.

Pneumoconiosis benefits

Accrued Workers Compensation And Pneumoconiosis Benefits

Components of net periodic benefit cost


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020

	(in thousands)
Service cost	$	1,007	$	882	$	3,027	$	2,643
Interest cost (1)		636		750		1,909		2,249
Net amortization (1)		1,043		(172)		3,129		(515)
Net periodic benefit cost	$	2,686	$	1,460	$	8,065	$	4,377

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