CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

12 Months Ended

Dec. 31, 2012

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

21. CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

        The ARLP Partnership has significant long-term coal supply agreements, some of which contain prospective price adjustment provisions designed to reflect changes in market conditions, labor and other production costs and, in the infrequent circumstance when the coal is sold other than free on board the mine, changes in transportation rates. Total revenues from major customers, including transportation revenues, which are at least ten percent of total revenues, are as follows (in thousands):

		Year Ended December 31,
	Segment (Note 22)
		2012		2011		2010
Customer A	Illinois Basin	$	336,560	$	231,838	$	279,516
Customer B	Illinois Basin		243,339		249,047		191,225

        Trade accounts receivable from these customers totaled approximately $58.9 million and $34.1 million at December 31, 2012 and 2011, respectively. The ARLP Partnership's bad debt experience has historically been insignificant. Financial conditions of the ARLP Partnership's customers could result in a material change to its bad debt expense in future periods. The coal supply agreements with the ARLP Partnership's significant customers expire in 2016.