CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

12 Months Ended

Dec. 31, 2015

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:

		Year Ended December 31,
	Segment	2015		2014		2013
		(in thousands)
Customer A	Illinois Basin	$	343,483	$	301,191	$	319,932
Customer B	Illinois Basin	305,048		276,094		263,582

Trade accounts receivable from these customers totaled approximately $37.5 million and $43.5 million at December 31, 2015 and 2014, 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 expire in 2018 for customer A and 2016 for customer B.