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Workers' Compensation And Pneumoconiosis

6 Months Ended

Jun. 30, 2025

Workers' Compensation And Pneumoconiosis Disclosure [Abstract]

Workers' Compensation And Pneumoconiosis

9.WORKERS’ COMPENSATION AND PNEUMOCONIOSIS

The changes in the workers’ compensation liability, including current and long-term liability balances, for each of the periods presented were as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024

	(in thousands)
Beginning balance	$	48,511	$	47,561	$	47,870	$	47,975
Changes in accruals		3,419		3,365		6,795		6,490
Payments		(3,762)		(3,446)		(7,064)		(7,494)
Interest accretion		570		509		1,137		1,018
Valuation loss (gain) (1)		496		(795)		496		(795)
Ending balance	$	49,234	$	47,194	$	49,234	$	47,194

(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 loss in 2025 is due to a decrease in the discount rate from 5.17% on December 31, 2024 to 4.92% on June 30, 2025. The valuation gain in 2024 is due to an increase in the discount rate from 4.66% on December 31, 2023 to 5.18% on June 30, 2024.

We limit our exposure to traumatic injury claims by purchasing a high deductible insurance policy that starts paying benefits after deductibles for a claim have been met. The deductible level may vary by claim year. Our workers’ compensation liability above is presented on a gross basis and does not include our expected receivables from our insurance policy. Our receivables for traumatic injury claims under this policy as of June 30, 2025 are $3.7 million and are included in Other long-term assets on our condensed consolidated balance sheet.

Certain of our mine operating entities are liable under state statutes and the Federal Coal Mine Health and Safety Act of 1969, as amended, to pay pneumoconiosis, or black lung, benefits to eligible employees and former employees and their dependents. 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,
	2025		2024		2025		2024

	(in thousands)
Service cost	$	889	$	858	$	1,748	$	1,719
Interest cost (1)		1,686		1,558		3,352		3,116
Net amortization (1)		232		839		464		1,678
Net periodic benefit cost	$	2,807	$	3,255	$	5,564	$	6,513

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