Employee Benefit Plans

12 Months Ended

Dec. 31, 2025

14.EMPLOYEE BENEFIT PLANS

Defined Contribution Plans

All regular full-time employees are eligible to participate in a defined contribution profit sharing and savings plan (“PSSP”) that we sponsor. PSSP participants may elect to make voluntary contributions to this plan up to a specified amount of their compensation. We make matching contributions based on a percentage of an employee’s eligible compensation and also make an additional non-matching contribution. Our contribution expense for the PSSP was $23.7 million, $25.5 million and $21.8 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Defined Benefit Plan

Eligible employees and former employees of certain of our mining operations participate in a defined benefit plan (the “Pension Plan”) that we sponsor. The Pension Plan is closed to new applicants. Participants in the Pension Plan are no longer receiving benefit accruals for service. The benefit formula for the Pension Plan is a fixed-dollar unit based on years of service.

The following sets forth changes in benefit obligations and plan assets for the years ended December 31, 2025 and 2024 and the funded status of the Pension Plan reconciled with the amounts reported in our consolidated financial statements:


		December 31,
		2025			2024

		(dollars in thousands)
Change in benefit obligations:
Benefit obligations at beginning of year		$	98,977		$	105,870
Interest cost			5,242			5,107
Actuarial gain			(1,806)			(4,509)
Benefits paid			(6,374)			(7,491)
Benefit obligations at end of year			96,039			98,977

Change in plan assets:
Fair value of plan assets at beginning of year			100,942			97,252
Employer contribution			817			152
Actual return on plan assets			12,388			11,029
Benefits paid			(6,374)			(7,491)
Fair value of plan assets at end of year			107,773			100,942
Funded status at the end of year		$	11,734		$	1,965

Amounts recognized in balance sheet:
Non-current assets		$	11,734		$	1,965

Amounts recognized in accumulated other comprehensive loss consists of:
Prior service cost		$	—		$	(10)
Net actuarial gain (loss)			4,656			(2,694)
		$	4,656		$	(2,704)

Weighted-average assumption to determine benefit obligations as of December 31,
Discount rate			5.47%			5.51%

Weighted-average assumptions used to determine net periodic benefit cost for the year ended December 31,
Discount rate			5.51%			4.90%
Expected return on plan assets			7.00%			7.50%

The actuarial gain component of the change in benefit obligations in 2025 was primarily attributable to the buy-in transaction as discussed in more detail below. The actuarial gain component of the change in benefit obligations in 2024 was primarily attributable to an increase in the discount rate compared to the prior year end.

The actual return on plan assets was 13.5% and 11.3% for the years ended December 31, 2025 and 2024, respectively.


		Year Ended December 31,
		2025			2024			2023

		(in thousands)
Components of net periodic benefit credit:
Interest cost		$	5,242		$	5,107		$	5,180
Expected return on plan assets			(6,844)			(7,031)			(6,220)
Amortization of prior service cost			9			186			186
Amortization of net loss			—			383			682
Net periodic benefit credit (1)		$	(1,593)		$	(1,355)		$	(172)

(1)	Nonservice components of net periodic benefit credit are included in the Other income (expense) line item within our consolidated statements of income.


		Year Ended December 31,
		2025			2024

		(in thousands)
Other changes in plan assets and benefit obligation recognized in accumulated other comprehensive loss:
Net actuarial gain		$	7,351		$	8,507
Reversal of amortization item:
Prior service cost			9			186
Net actuarial loss			—			383
Total recognized in accumulated other comprehensive loss			7,360			9,076
Net periodic benefit credit			1,593			1,355
Total recognized in net periodic benefit credit and accumulated other comprehensive loss		$	8,953		$	10,431

Estimated future benefit payments as of December 31, 2025 are as follows:


Year Ended
December 31,		(in thousands)

2026		$	6,646
2027			6,771
2028			6,867
2029			6,972
2030			7,008
2031-2035			35,374
		$	69,638

We do not expect to make material contributions to the Pension Plan during 2026.

In December 2025, we entered into a pension buy-in transaction with an insurance carrier to secure pension benefits for plan participants. In connection with the buy-in the Pension Plan purchased a buy-in contract. The buy-in contract is accounted for as a plan asset as we retain the underlying pension obligation. Subsequent to the buy-in, we measure the pension obligation at an amount equal to the fair value of the buy-in contract, reflecting the rate at which the obligation could be effectively settled. Prior to the buy-in, we had appointed an investment manager, which employed an asset allocation strategy through investment in certain investment types such as equity securities and fixed income securities. The objective of the previous allocation policy was to achieve an average annual return greater than the actuarial discount rate over the specified time horizon.

The following information discloses the fair values of our Pension Plan assets by asset category:


	December 31,
	2025								2024
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

	(in thousands)
Cash and cash equivalents	$	2,509	$	—	$	—	$	2,509	$	2,243	$	—	$	—	$	2,243
Equity investments - Individual securities (a):
Consumer discretionary		—		—		—		—		3,572		—		—		3,572
Consumer durables		—		—		—		—		2,257		—		—		2,257
Energy		—		—		—		—		1,046		—		—		1,046
Financials		—		—		—		—		5,302		—		—		5,302
Health Care		—		—		—		—		3,972		—		—		3,972
Industrials & materials		—		—		—		—		4,402		—		—		4,402
Information technology & communication		—		—		—		—		9,052		—		—		9,052
Fixed income - Investments (b):
Preferred stocks non-convertible		—		—		—		—		14		—		—		14
Real return mutual funds		—		—		—		—		464		—		—		464
Exchange traded mutual funds		—		—		—		—		591		—		—		591
Equity investments - Mutual funds (c):
Mid-cap stock funds		—		—		—		—		11,327		—		—		11,327
Small-cap stock funds		—		—		—		—		3,316		—		—		3,316
International stock funds		—		—		—		—		4,689		—		—		4,689
Equity investments - Exchange traded funds (d):
Large-cap blend - S&P 500 index		—		—		—		—		20,144		—		—		20,144
International - Developed markets		—		—		—		—		3,126		—		—		3,126
International - Emerging markets		—		—		—		—		3,338		—		—		3,338
Accrued income (e)		—		17		—		17		—		26		—		26
Buy-in contract (f)		—		—		96,039		96,039		—		—		—		—
	$	2,509	$	17	$	96,039	$	98,565	$	78,855	$	26	$	—	$	78,881
Commingled investment funds measured at net asset value (g):
Fixed income - Investment grade								9,208								22,061
Total							$	107,773							$	100,942

(a)

Equity investments - Individual securities include investments in publicly traded common stock and American Depository Receipts. Publicly traded common stocks are traded on a national securities exchange and investments in common stocks are valued using quoted market prices multiplied by the number of shares owned. American Depository Receipts are negotiable securities issued by a bank representing shares in a foreign company and traded on a national securities exchange.

(b)	Fixed income - investments include investments in preferred stock, mutual funds and exchange traded funds that are traded on a national securities exchange and valued using quoted market prices multiplied by the number of shares owned.

(c)

Equity investments - Mutual funds are valued daily in actively traded markets. For purposes of calculating the value, portfolio securities and other assets for which market quotes are readily available are valued at market value. Investments initially valued in currencies other than the U.S. dollars are converted to the U.S. dollar using exchange rates obtained from pricing services.

(d)	Equity investments – Exchange traded funds are funds that own financial assets and trade on exchanges, generally tracking a specific index. Investments in exchange traded funds are valued using a market approach based on the quoted market prices.

(e)	Accrued income represents dividends or interest declared, but not received, at the end of the period.

(f)

Buy-in contract – A contract that reimburses the Partnership for pension payments made to participants of the pension plan. The buy-in contract’s fair value is determined using the quote provided by an insurance company, reflecting prevailing market conditions for similar transactions. The following table presents changes in the value of the buy-in contract, which represents our only plan asset valued using significant unobservable inputs.


		Year Ended December 31,
		2025
		(in thousands)
Beginning balance		$	—
Purchase			96,577
Actual return on plan assets			(538)
Ending balance		$	96,039

(g)

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.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (o)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (p)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (q)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 60
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480266/715-60-50-3

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480126/715-20-S99-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480794/715-70-50-1

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480482/715-20-55-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (l)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/715/tableOfContent

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (r)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (r)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

+ Details

ALLIANCE RESOURCE PARTNERS LP 10-K