Workers Compensation Expense

The Company is liable under the Federal Mine Safety and Health Act of 1969, as subsequently amended, to provide for pneumoconiosis (occupational disease) benefits to eligible employees, former employees and dependents. The Company currently provides for federal claims principally through a self-insurance program. The Company is also liable under various state workers’ compensation statutes for occupational disease benefits. The occupational disease benefit obligation represents the present value of the of the actuarially computed present and future liabilities for such benefits over the employees’ applicable years of service.

In addition, the Company is liable for workers’ compensation benefits for traumatic injuries which are calculated using actuarially-based loss rates, loss development factors and discounted based on a risk free rate. Traumatic workers’ compensation claims are insured with varying retentions/deductibles, or through state-sponsored workers’ compensation programs.

Workers’ compensation expense consists of the following components:



	Successor		Predecessor
	Three Months Ended March 31, 2017		Three Months Ended March 31, 2016
(In thousands)
Self-insured occupational disease benefits:
Service cost	$	1,558	$	1,105
Interest cost	1,169		1,057
Net amortization	—		1,141
Total occupational disease	$	2,727	$	3,303
Traumatic injury claims and assessments	2,878		2,967
Total workers’ compensation expense	$	5,605	$	6,270