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CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS
12 Months Ended
Dec. 31, 2013
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS  
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

20.                               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 21)

 

2013

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

Customer A

 

Illinois Basin

 

$   319,932

 

$   336,560

 

$   231,838

 

Customer B

 

Illinois Basin

 

263,582

 

243,339

 

249,047

 

 

Trade accounts receivable from these customers totaled approximately $45.8 million and $58.9 million at December 31, 2013 and 2012, 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.