Alpha Metallurgical Resources Inc

The components of net periodic benefit cost other than the service cost component for black lung are included in the line item Miscellaneous expense, net in the Condensed Consolidated Statements of Operations.

Pension

The following table details the components of the net periodic benefit cost for pension obligations:

During the nine months ended September 30, 2024, an annual census data actuarial revaluation of pension obligations was performed, which resulted in an increase in the liability for pension obligations of approximately $12,953 with the offset to accumulated other comprehensive loss and an increase in net periodic benefit cost to be recognized subsequent to the revaluation date. An annual census data actuarial revaluation of pension obligations was also performed during the nine months ended September 30, 2023, which resulted in an increase in the liability for pension obligations of approximately $3,630 with the offset to accumulated other comprehensive loss and a slight increase in net periodic benefit cost to be recognized subsequent to the revaluation date.

The expected long-term rate of return on assets of the pension plan is utilized for the determination of the net periodic benefit cost. During the three months ended June 30, 2024, the Company updated the expected long-term rate of return on plan assets from 6.20% to 5.70% based on a weighted basis of the beginning and more recently assumed rate as the pension plan’s target allocation was updated to 50% equity securities and 50% fixed income funds in the interim period.

The Company paid $12,320 in minimum required contributions to the pension plan in 2024.

Black Lung

The following table details the components of the net periodic benefit cost for black lung obligations:

Defined Contribution and Profit Sharing Plans

The Company sponsors defined contribution plans to assist its eligible employees in providing for retirement. The Company’s total contributions to these plans for the three months ended September 30, 2024 and 2023 were $136 and $3,489, respectively. The Company’s total contributions to the plan for the nine months ended September 30, 2024 and 2023 were $6,268 and $11,856, respectively.

During the three months ended June 30, 2024, the Company’s matching contributions under the Alpha Metallurgical Resources 401(k) Retirement Savings Plan were suspended due to weak market conditions.

Self-insured Medical Plan

The Company is self-insured for health benefit coverage for all of its active employees. During the three months ended September 30, 2024 and 2023 the Company incurred total expenses of $27,885 and $22,040, respectively. and during the nine months ended September 30, 2024 and 2023 the Company incurred total expenses of $73,438 and $61,866, respectively, which primarily include claims processed and an estimate for claims incurred but not paid.