Note 4 - Workers’ Compensation Claims

The following table summarizes the aggregate workers’ compensation reserve activity (in thousands):


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
				(As Restated)						(As Restated)
Beginning balance
Workers’ compensation claims liabilities	$	265,142		$	231,723		$	255,675		$	225,279

Add: claims expense accrual:
Current period		34,627			30,748			65,781			58,530
Prior periods		(1,396	)		(4,234	)		(548	)		(7,131	)

		33,231			26,514			65,233			51,399

Less: claim payments related to:
Current period		3,698			3,512			4,969			4,410
Prior periods		17,625			15,481			38,889			33,024

		21,323			18,993			43,858			37,434

Ending balance
Workers’ compensation claims liabilities	$	277,050		$	239,244		$	277,050		$	239,244

Incurred but not reported (IBNR)	$	140,115		$	118,959		$	140,115		$	118,959

The states of California, Oregon, Maryland, Washington, Delaware and Colorado required us to maintain specified investment balances or other financial instruments totaling $158.2 million at June 30, 2016 to cover potential workers’ compensation claims losses related to the Company’s current and former status as a self-insured employer. In partial satisfaction of these requirements at June 30, 2016, we have provided surety bonds and standby letters of credit totaling $152.0 million, including a California requirement of $147.2 million.

As part of its fronted workers’ compensation insurance program with ACE Group (“ACE”) in the states of California, Delaware, Virginia, Pennsylvania and the District of Columbia, the Company makes payments into a trust account (“the ACE trust account”) to be used for the payment of future claims. The balance in the ACE trust account was $232.9 million and $166.6 million at June 30, 2016 and December 31, 2015, respectively. The ACE trust account balances are included as a component of the current and long-term restricted marketable securities and workers’ compensation deposits in the Company’s condensed consolidated balance sheets.