WORKERS' COMPENSATION AND PNEUMOCONIOSIS (Tables)

9 Months Ended

Sep. 30, 2022

Reconciliation of changes in workers' compensation liability


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021

	(in thousands)
Beginning balance	$	47,221	$	52,059	$	53,448	$	54,739
Accruals increase		2,918		1,674		7,464		4,911
Payments		(2,856)		(2,939)		(8,938)		(7,914)
Interest accretion		287		232		861		695
Valuation gain (1)		—		—		(5,265)		(1,405)
Ending balance	$	47,570	$	51,026	$	47,570	$	51,026

(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 2022 is due to an increase in the discount rate from 2.41% on December 31, 2021 to 4.22% on June 30, 2022. 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.

Pneumoconiosis benefits

Black lung benefits:

Components of net periodic benefit cost


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021

	(in thousands)
Service cost	$	949	$	1,007	$	2,850	$	3,027
Interest cost (1)		747		636		2,243		1,909
Net amortization (1)		260		1,043		779		3,129
Net periodic benefit cost	$	1,956	$	2,686	$	5,872	$	8,065

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