Employee Benefit Plans | Employee Benefit Plans The Company provides several types of benefits for its employees, including defined benefit and defined contribution pension plans, workers’ compensation and black lung benefits, and postretirement life insurance. The Company does not participate in any multi-employer plans. The components of net periodic benefit (credit) cost other than the service cost component for black lung are included in the line item Miscellaneous income (loss), net, in the Consolidated Statements of Operations. Company Administered Defined Benefit Pension Plans In connection with the Merger, the Company assumed three qualified non-contributory defined benefit pension plans, which cover certain salaried and non-union hourly employees. The qualified non-contributory defined benefit pension plans are collectively referred to as the “Pension Plans.” Benefits are frozen under these plans. Participants accrued benefits either based on certain formulas, the participant’s compensation prior to retirement, or plan specified amounts for each year of service with the Company. One of the Company’s frozen qualified non-contributory defined benefit pension plans utilizes a cash balance formula for certain of its participants. The cash balance formula provides guaranteed rates of interest on accumulated balances of 6% for balances accumulated prior to 2004 and 4% on balances accumulated thereafter. Annual funding contributions to the Pension Plans are made as recommended by consulting actuaries based upon the ERISA funding standards. Projected contributions are based on the latest available data and include the impact of the funding relief granted by the American Rescue Plan Act ("ARPA") and the application of the interest rate stabilization guidance under ARPA. Plan assets consist of equity securities, fixed income funds, commingled short-term funds, private equity funds, and a guaranteed insurance contract. Effective in 2019, two of the qualified non-contributory defined benefit pension plans were amended to offer certain eligible participants the option to elect to receive lump sum benefits, which resulted in a partial plan settlement and the accelerated recognition of a portion of the accumulated other comprehensive loss during the years ended December 31, 2022, 2021, and 2020. Refer to the disclosures below for further information on the partial plan settlements. The following tables set forth the Pension Plans’ accumulated benefit obligations, fair value of plan assets and funded status for the years ended December 31, 2022 and 2021. Year Ended December 31, 2022 2021 Change in benefit obligations: Accumulated benefit obligation at beginning of period: $ 668,055 $ 723,448 Interest cost 15,981 13,566 Actuarial gain (1) (182,441) (34,922) Benefits paid (30,378) (30,222) Settlement (2,775) (3,815) Accumulated benefit obligation at end of period $ 468,442 $ 668,055 Change in fair value of plan assets: Fair value of plan assets at beginning of period $ 508,125 $ 504,777 Actual return on plan assets (120,796) 30,814 Employer contributions 3,430 6,571 Benefits paid (30,378) (30,222) Settlement (2,775) (3,815) Fair value of plan assets at end of period $ 357,606 $ 508,125 Funded status $ (110,836) $ (159,930) Accrued benefit cost at end of period (2) $ (110,836) $ (159,930) (1) For the year ended December 31, 2022, the actuarial gain was primarily attributable to the loss on plan assets and the change in the weighted-average discount rate actuarial assumption used in determining the benefit obligations. For the year ended December 31, 2021, the actuarial gain was primarily attributable to the change in the weighted-average discount rate actuarial assumption used in determining the benefit obligations. (2) Amounts are classified as long-term on the Consolidated Balance Sheets as there are sufficient plan assets to make expected benefit payments to plan participants in the succeeding twelve months. Gross amounts related to benefit obligations recognized in accumulated other comprehensive loss consisted of the following as of December 31, 2022 and 2021: December 31, 2022 2021 Net actuarial loss $ 12,683 $ 47,950 The following table details the components of net periodic benefit credit: Year Ended December 31, 2022 2021 2020 Interest cost $ 15,981 $ 13,566 $ 18,730 Expected return on plan assets (28,733) (28,732) (27,064) Amortization of net actuarial loss 2,111 3,217 2,012 Settlement 244 412 1,636 Net periodic benefit credit $ (10,397) $ (11,537) $ (4,686) Other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income are as follows: Year Ended December 31, 2022 2021 2020 Actuarial (gain) loss $ (32,912) $ (37,004) $ 45,663 Amortization of net actuarial loss (2,111) (3,217) (2,012) Settlement (244) (412) (1,636) Total recognized in other comprehensive (loss) income $ (35,267) $ (40,633) $ 42,015 The following table presents information applicable to plans with accumulated benefit obligations in excess of plan assets: Year Ended December 31, 2022 2021 Projected benefit obligation $ 468,442 $ 668,055 Accumulated benefit obligation $ 468,442 $ 668,055 Fair value of plan assets $ 357,606 $ 508,125 The weighted-average actuarial assumption used in determining the benefit obligations as of December 31, 2022 and 2021 was as follows: December 31, 2022 2021 Discount rate 5.42 % 2.92 % The weighted-average actuarial assumptions used to determine net periodic benefit credit for the years ended December 31, 2022, 2021, and 2020 were as follows: Year Ended December 31, 2022 2021 2020 Discount rate for benefit obligation 2.92 % 2.62 % 3.35 % Discount rate for interest cost 2.44 % 1.96 % 2.92 % Expected long-term rate of return on plan assets 5.80 % 5.80 % 5.90 % The discount rate assumptions were determined from a high-quality corporate bond yield-curve timing of the Company’s projected cash out flows. The expected long-term rate of return on assets of the Pension Plans is established each year in consultation with the plans’ actuaries and outside investment advisors. This rate is determined by taking into consideration the Pension Plans’ target asset allocation, expected long-term rates of return on each major asset class by reference to long-term historic ranges, inflation assumptions, and the expected additional value from active management of the Pension Plans’ assets. For the determination of net periodic benefit cost in 2023, the Company will utilize an expected long-term rate of return on plan assets of 6.20%. Assets of the Pension Plans are held in trusts and are invested in accordance with investment guidelines that have been established by the Company’s Benefits Committee in consultation with outside investment advisors. The target allocation for 2023 and the actual asset allocation as reported at December 31, 2022 are as follows: Target Allocation Percentages 2023 Percentage of Plan Assets 2022 Equity securities 58.0 % 55.0 % Fixed income funds 42.0 % 41.0 % Other — % 4.0 % Total 100.0 % 100.0 % The asset allocation targets have been set with the expectation that the Pension Plans’ assets will fund the expected liabilities within an appropriate level of risk. In determining the appropriate target asset allocations, the Benefits Committee considers the demographics of the Pension Plans’ participants, the funded status of each plan, the Company’s contribution philosophy, the Company’s business and financial profile, and other associated risk factors. The Pension Plans’ assets are periodically rebalanced among the major asset categories to maintain the asset allocation within a specified range of the target allocation percentage. The target allocation between equity securities and fixed income funds is determined by reference to the funded status percentage for each of the Pension Plans. The plan administrator uses a one-way de-risking glide path whereby the fixed income funds allocation increases as the funded status improves. At a 90.0% funded status level, the glide path calls for a 50/50 equity securities and fixed income funds mix. During the year ended December 31, 2021, one of the Pension Plans funded status levels reached 90.0% and the related plan assets were adjusted accordingly to the new allocation. The Company contributed $3,430 to the pension plans during the year ended December 31, 2022. The Company expects to contribute $25,011 to the Pension Plans in 2023, which includes amounts above the estimated minimum required contributions for the 2023 plan year. The following represents expected future pension benefit payments for the next ten years: 2023 $ 31,084 2024 31,103 2025 31,136 2026 31,215 2027 31,264 2028-2032 153,885 $ 309,687 The fair values of the Company’s Pension Plans’ assets as of December 31, 2022, by asset category are as follows: Asset Category Total Quoted Market Prices in Active Market for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity securities: Multi-asset fund (1) $ 198,262 $ — $ 198,262 $ — Fixed income funds: Bond fund (2) 144,197 — 144,197 — Commingled short-term fund (3) 1,339 — 1,339 — Other types of investments: Guaranteed insurance contract 11,912 — — 11,912 Total $ 355,710 $ — $ 343,798 $ 11,912 Receivable (4) 1,145 Total assets at fair value 356,855 Private equity funds measured at net asset value practical expedient (5) 751 Total plan assets $ 357,606 (1) This fund contains equities (domestic and international), real estate and bonds. (2) This fund contains bonds representing a diversity of sectors and maturities. This fund also includes mortgage-backed securities and U.S. Treasuries. (3) This fund contains cash and highly liquid short-term investments in a collective investment fund. (4) Receivable for investments sold at December 31, 2022, which approximates fair value. (5) In accordance with Accounting Standards Update 2015-07, investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the total value of assets of the plans. Changes in Level 3 plan assets for the period ended December 31, 2022 were as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Guaranteed Insurance Contract Beginning balance, December 31, 2021 $ 11,652 Actual return on plan assets: Relating to assets still held at the reporting date 562 Purchases, sales and settlements (302) Ending balance, December 31, 2022 $ 11,912 The fair values of the Company’s Pension Plans’ assets as of December 31, 2021, by asset category are as follows: Asset Category Total Quoted Market Prices in Active Market for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity securities: Multi-asset fund (1) $ 284,568 $ — $ 284,568 $ — Fixed income funds: Bond fund (2) 208,466 — 208,466 — Commingled short-term fund (3) 1,384 — 1,384 — Other types of investments: Guaranteed insurance contract 11,652 — — 11,652 Total $ 506,070 $ — $ 494,418 $ 11,652 Receivable (4) 876 Total assets at fair value 506,946 Private equity funds measured at net asset value practical expedient (5) 1,179 Total plan assets $ 508,125 (1) This fund contains equities (domestic and international), real estate and bonds. (2) This fund contains bonds representing a diversity of sectors and maturities. This fund also includes mortgage-backed securities and U.S. Treasuries. (3) This fund contains cash and highly liquid short-term investments in a collective investment fund. (4) Receivable for investments sold at December 31, 2021, which approximates fair value. (5) In accordance with Accounting Standards Update 2015-07, investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the total value of assets of the plans. Changes in Level 3 plan assets for the period ended December 31, 2021 were as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Guaranteed Insurance Contract Beginning balance, December 31, 2020 $ 11,454 Actual return on plan assets: Relating to assets still held at the reporting date 528 Purchases, sales and settlements (330) Ending balance, December 31, 2021 $ 11,652 The following is a description of the valuation methodologies used for assets measured at fair value: Level 1 Plan Assets: Assets consist of individual security positions that are easily traded on recognized market exchanges. These securities are priced and traded daily, and therefore the fund is valued daily. Level 2 Plan Assets: Funds consist of individual security positions that are mostly securities easily traded on recognized market exchanges. These securities are priced and traded daily, and therefore the fund is valued daily. Level 3 Plan Assets: Assets are valued monthly or quarterly based on the Market Value provided by managers of the underlying fund investments. The Market Value provided typically reflects the fair value of each underlying fund investment, including unrealized gains and losses. Workers’ Compensation and Pneumoconiosis (Black Lung) The Company is required by federal and state statutes to provide benefits to employees for awards related to workers’ compensation and black lung. The Company’s subsidiaries utilize high-deductible third-party insurance for worker’s compensation and black lung obligations with the exception of certain subsidiaries in which the Company is a qualified self-insurer for workers’ compensation and/or black lung obligations. The Company’s subsidiaries that are self-insured for black lung benefits may fund certain benefit payments through a Section 501(c) (21) tax-exempt trust fund. Pursuant to the Merger Agreement, the Company assumed a reinsurance contract with a third party. In 2017, the Merger Companies made a lump sum payment in exchange for a reinsurance company’s agreement to administer and pay certain future workers’ compensation and state black lung obligations in the state of Kentucky. Pursuant to the Merger Agreement, the Company assumed the estimated liability for these future claims. As the liabilities are paid by the insurance company, the prepaid insurance amounts will be reduced by a corresponding amount. The Company accrues for workers’ compensation liability by recognizing costs when it is probable that a covered liability has been incurred and the cost can be reasonably estimated. The Company’s estimates of these costs are adjusted based upon actuarial studies and include a provision for incurred but not reported losses. Actual losses may differ from these estimates, which could increase or decrease the Company’s costs. Additionally, the liability for black lung benefits is estimated by an independent actuary by prorating the accrual of actuarially projected benefits over the employee’s applicable term of service. Adjustments to the probable ultimate liability for workers’ compensation and black lung are made annually based on actuarial valuations. For the Company’s subsidiaries that are insured with a high-deductible insurance plan for workers’ compensation and black lung claims, the insurance premium expense for the years ended December 31, 2022, 2021 and 2020 was $9,274, $8,630, and $7,000, respectively. Workers’ Compensation The table below presents workers’ compensation amounts recognized in the Consolidated Balance Sheets: December 31, 2022 2021 Current liabilities $ 11,651 $ 13,312 Long-term liabilities 107,028 124,693 Total liabilities $ 118,679 $ 138,005 Less expected insurance receivable (1) (46,866) (53,664) Workers’ compensation obligations, net of expected insurance receivables $ 71,813 $ 84,341 (1) Included within Prepaid expenses and other current assets and Other non-current assets in the Consolidated Balance Sheets. Workers’ compensation (credit) expense for high-deductible insurance plans for the years ended December 31, 2022, 2021, and 2020 was ($1,995), $664, and $1,275, respectively, included within Cost of coal sales in the Consolidated Statements of Operations. Black Lung The divestiture of the Company’s former NAPP operations during the fourth quarter of 2020 (refer to Note 3) resulted in a partial plan settlement of $8,290 and the accelerated recognition of a portion of the accumulated other comprehensive loss of $1,563 during the three months ended December 31, 2020. Refer to the disclosures below for further information on the partial plan settlement. As a result of the strategic actions impacting certain mines during the three months ended June 30, 2020 (refer to Note 8), black lung obligations were revalued for curtailment and remeasured with an updated discount rate as of May 31, 2020, which resulted in an increase in the liability for black lung obligations of approximately $7,400 with the offset to accumulated other comprehensive loss and a slight increase in net periodic expense to be recognized subsequent to the remeasurement date. Refer to the disclosures below for further information. The following tables set forth the accumulated black lung benefit obligations, fair value of plan assets and funded status for the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 2021 Change in benefit obligation: Accumulated benefit obligation at beginning of period $ 117,142 $ 127,506 Service cost 2,642 2,972 Interest cost 2,722 2,463 Actuarial gain (1) (21,060) (9,759) Benefits paid (8,025) (6,040) Accumulated benefit obligation at end of period $ 93,421 $ 117,142 Change in fair value of plan assets: Fair value of plan assets at beginning of period $ 2,664 $ 2,720 Actual return on plan assets (126) (56) Benefits paid (8,025) (6,040) Employer contributions 8,025 6,040 Fair value of plan assets at end of period (2) 2,538 2,664 Funded status $ (90,883) $ (114,478) Accrued benefit cost at end of period $ (90,883) $ (114,478) (1) For the years ended December 31, 2022 and 2021, the actuarial gain was primarily attributable to the change in the weighted-average discount rate actuarial assumption used in determining the benefit obligations. (2) Assets of the plan are held in a Section 501(c)(21) tax-exempt trust fund and consist primarily of government debt securities. All assets are classified as Level 1 and valued based on quoted market prices. The table below presents amounts recognized in the Consolidated Balance Sheets: December 31, 2022 2021 Current liabilities $ 9,664 $ 7,295 Long-term liabilities 81,219 107,183 Total liabilities $ 90,883 $ 114,478 Gross amounts related to the black lung benefit obligations recognized in accumulated other comprehensive loss consisted of the following as of December 31, 2022 and 2021: December 31, 2022 2021 Net actuarial (gain) loss $ (10,198) $ 11,940 The following table details the components of the net periodic benefit cost for the black lung benefit obligations: Year Ended December 31, 2022 2021 2020 Service cost $ 2,642 $ 2,972 $ 2,361 Interest cost 2,722 2,463 3,240 Expected return on plan assets (53) (54) (54) Amortization of net actuarial loss 1,257 2,453 1,942 Settlement — — 1,563 Net periodic benefit cost $ 6,568 $ 7,834 $ 9,052 Summary net periodic benefit cost: Continuing operations $ 6,568 $ 7,834 $ 7,670 Discontinued operations (1) — — 1,382 Total net periodic benefit cost $ 6,568 $ 7,834 $ 9,052 (1) The discontinued operations consisted of activity related to the Company’s former NAPP operations. Refer to Note 3. Other changes in the black lung plan assets and benefit obligations recognized in other comprehensive (loss) income are as follows: Year Ended December 31, 2022 2021 2020 Actuarial (gain) loss $ (20,881) $ (9,649) $ 14,567 Amortization of net actuarial loss (1,257) (2,453) (1,942) Settlement — — (1,563) Total recognized in other comprehensive (loss) income $ (22,138) $ (12,102) $ 11,062 The weighted-average assumptions related to black lung obligations used to determine the benefit obligation as of December 31, 2022 and 2021 were as follows: December 31, 2022 2021 Discount rate 5.42 % 2.96 % Federal black lung income benefit trend rate 2.50 % 2.00 % Federal black lung medical benefit trend rate 5.00 % 5.00 % The weighted-average assumptions related to black lung benefit obligations used to determine net periodic benefit cost were as follows: Year Ended December 31, 2022 2021 2020 Discount rate for benefit obligation 2.96 % 2.75 % 3.47 % Discount rate for service cost 3.24 % 3.15 % 3.56 % Discount rate for interest cost 2.37 % 1.96 % 2.61 % Federal black lung income benefit trend rate 2.50 % 2.00 % 2.50 % Federal black lung medical benefit trend rate 5.00 % 5.00 % 5.00 % Black lung benefit expense inflation rate (1) — % — % 2.00 % Expected return on plan assets 2.00 % 2.00 % 2.00 % (1) Effective in 2021, the annual claim administration expenses are incorporated into the annual service cost component of the net periodic benefit cost for the black lung benefit obligations. Estimated future cash payments related to black lung benefit obligations for the next 10 years ending after December 31, 2022 are as follows: Year ending December 31: 2023 $ 9,664 2024 9,218 2025 9,009 2026 8,923 2027 8,828 2028-2032 20,454 $ 66,096 Postretirement Life Insurance Benefits As part of the Alpha Natural Resources, Inc. bankruptcy reorganization process and the Retiree Committee Settlement Agreement, the Company assumed the unfunded liability for life insurance benefits for certain disabled and non-union retired employees. Provisions are made for estimated benefits and adjustments to the probable ultimate liabilities are made annually based on an actuarial study prepared by independent actuaries. As of December 31, 2022 and 2021, the postretirement life insurance benefit obligation was $8,761, including a current portion $648, and $11,610, including a current portion $602, respectively, which are included in the Consolidated Balance Sheets as Other non-current liabilities and Accrued expenses and other current liabilities. Defined Contribution and Profit-Sharing Plans The Company sponsors defined contribution plans to assist its eligible employees in providing for retirement. Generally, under the terms of these plans, employees make voluntary contributions through payroll deductions and the Company makes matching and/or discretionary contributions, as defined by each plan. The Company’s total contributions to these plans for the years ended December 31, 2022, 2021, and 2020 were $19,385, $10,275, and $3,613 respectively. During the third quarter of 2022, the Company announced a year-end discretionary employer contribution under the Alpha Metallurgical Resources 401(k) Retirement Savings Plan (the “Plan”) equal to the 2% of the Plan participants’ annual salaries. Effective in June 2021, the Company’s matching contributions under the Plan were reinstated after being suspended due to weak market conditions during the second quarter of 2020. Self-insured Medical Plan |