EMPLOYEE BENEFIT PLANS (Tables) - ARLP - Pension Plan

12 Months Ended

Dec. 31, 2017


	2017		2016
	(dollars in thousands)
Change in benefit obligations:
Benefit obligations at beginning of year	$	113,482	$	107,476
Service cost		—		2,205
Interest cost		4,587		4,493
Actuarial loss		13,501		901
Benefits paid		(4,272)		(3,091)
Plan amendments		—		1,498
Benefit obligations at end of year		127,298		113,482

Change in plan assets:
Fair value of plan assets at beginning of year		71,412		68,445
Employer contribution		2,971		2,608
Actual return on plan assets		11,870		3,450
Benefits paid		(4,272)		(3,091)
Fair value of plan assets at end of year		81,981		71,412
Funded status at the end of year	$	(45,317)	$	(42,070)

Amounts recognized in balance sheet:
Non-current liability	$	(45,317)	$	(42,070)

Amounts recognized in accumulated other comprehensive income consists of:
Prior service cost	$	(1,312)	$	(1,498)
Net actuarial loss		(41,979)		(38,424)
	$	(43,291)	$	(39,922)

Weighted-average assumptions to determine benefit obligations as of December 31,
Discount rate		3.54%		4.06%
Expected rate of return on plan assets		7.00%		7.00%

Weighted-average assumptions used to determine net periodic benefit cost for the year ended December 31,
Discount rate		4.06%		4.27%
Expected return on plan assets		7.00%		7.50%

Schedule of long-term rate of return assumptions



		Asset allocation
As of December 31, 2017		assumption
Equity securities		62%
Fixed income securities		33%
Real estate		5%
		100%

Components of net periodic benefit cost


	Year Ended December 31,
	2017		2016		2015
	(in thousands)
Components of net periodic benefit cost:
Service cost	$	—	$	2,205	$	2,473
Interest cost		4,587		4,493		4,296
Expected return on plan assets		(4,978)		(5,138)		(5,590)
Amortization of prior service cost		186		—		—
Amortization of net loss		3,054		2,952		3,354
Net periodic benefit cost	$	2,849	$	4,512	$	4,533

Schedule of other changes in plan assets and benefit obligation recognized in accumulated other comprehensive income


	2017		2016
	(in thousands)
Other changes in plan assets and benefit obligation recognized in accumulated other comprehensive loss:
Prior service cost	$	—	$	(1,498)
Net actuarial loss		(6,610)		(2,589)
Reversal of amortization item:
Prior service cost		186		—
Net actuarial loss		3,054		2,952
Total recognized in accumulated other comprehensive loss		(3,370)		(1,135)
Net periodic benefit cost		(2,849)		(4,512)
Total recognized in net periodic benefit cost and accumulated other comprehensive loss	$	(6,219)	$	(5,647)

Schedule of estimated future benefit payments


Year Ended
December 31,	(in thousands)

2018	$	4,238
2019		4,651
2020		5,053
2021		5,420
2022		5,696
2023-2027		32,329
	$	57,387

Schedule of asset allocation guidelines, actual asset allocations and fair value of Pension Plan assets

General asset allocation guidelines at December 31, 2017 are as follows:


	Percentage of Total Portfolio
	Minimum	Target	Maximum

Equity securities	45%	62%	80%
Fixed income securities	10%	33%	55%
Real estate	0%	5%	10%

Equity securities include domestic equity securities, developed international securities, emerging markets equity securities and real estate investment trust. Fixed income securities include domestic and international investment grade fixed income securities, high yield securities and emerging markets fixed income securities. Fixed income futures may also be utilized within the fixed income securities asset allocation.

The following information discloses the fair values of the Pension Plan assets, by asset category, for the periods indicated:


	December 31, 2017		December 31, 2016
	(in thousands)
Cash and cash equivalents (a)	$	1,439	$	1,137

Commingled investment funds measured at net asset value (b):
Equities - U.S. large-cap		26,031		21,082
Equities - U.S. small-cap		6,120		6,531
Equities - International developed markets		15,015		11,074
Equities - International emerging markets		6,528		4,614
Fixed income - Investment grade		13,546		16,823
Fixed income - High yield		4,325		4,543
Real estate		3,754		4,259
Other		5,223		1,349
Total	$	81,981	$	71,412

(a)

Cash and cash equivalents represents a Level 1 fair value measurement. See Note 2 – Summary of Significant Accounting Policies – Fair Value Measurements for more information regarding the definitions of fair value hierarchy levels.

(b)

Investments measured at fair value using the net asset value per share (or its equivalent) have not been classified within the fair value hierarchy. The fair values of all commingled investment funds are determined based on the net asset values per unit of each of the funds. The net asset values per unit represent the aggregate value of the fund's assets at fair value less liabilities, divided by the number of units outstanding.

Alliance Holdings GP, L.P. 10-K