Noncontrolling Interests

9 Months Ended

Sep. 30, 2011

Noncontrolling Interests [Abstract]

Noncontrolling Interests

8. NONCONTROLLING INTERESTS

We apply the provisions of FASB ASC 810, Consolidation. As required by FASB ASC 810, our noncontrolling ownership interest in consolidated subsidiaries is presented in the consolidated balance sheet within Partners' Capital as a separate component from the limited partners' equity. In addition, consolidated net income includes earnings attributable to both the limited partners' and the noncontrolling interests.

The noncontrolling interests balance is comprised of non-affiliate and affiliate ownership interests in the net assets of the ARLP Partnership that we consolidate (Note 1). The following table summarizes the components of noncontrolling interests recorded in Partners' Capital for the periods indicated (in thousands):

	September 30, 2011			December 31, 2010
Noncontrolling interests reflected in Partners' Capital:
Affiliate (SGP)	$	(303,799	)	$	(303,816	)
Non-Affiliates (ARLP's non-affiliate limited partners)		536,307			449,411
Accumulated other comprehensive loss attributable to noncontrolling interests		(10,483	)		(10,583	)
Total noncontrolling interests	$	222,025		$	135,012

The noncontrolling interest designated as Affiliate represents SGP's 0.01% general partner interest in ARLP and 0.01% general partner interest in the Intermediate Partnership.

The noncontrolling interest designated as Non-Affiliates represents the limited partners' interest in ARLP controlled through the common unit ownership, excluding the 15,544,169 common units of ARLP held by us. The total obligation associated with ARLP's Long-Term Incentive Plan ("ARLP LTIP"), MGP Amended and Restated Deferred Compensation Plan for Directors ("MGP Deferred Compensation Plan") and the Supplemental Executive Retirement Plan ("SERP") are also included in the Non-Affiliates component of noncontrolling interest (Note 10).

The following table summarizes net income attributable to each component of the noncontrolling interests for the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Net income attributable to noncontrolling interest:
Affiliate (SGP)	$	16	$	11	$	47	$	37
Non-Affiliates (ARLP's non-affiliate limited partners)		46,543		31,591		133,320		103,919
	$	46,559	$	31,602	$	133,367	$	103,956

The following table summarizes cash distributions paid by ARLP to each component of the noncontrolling interests for the periods indicated (in thousands):

	Nine Months Ended September 30,
	2011		2010
Distributions paid to noncontrolling interests:
Affiliate (SGP) (1)	$	30	$	27
Non-Affiliates (ARLP's non-affiliate limited partners) (1)		57,757		51,215
	$	57,787	$	51,242

(1) Distributions paid to noncontrolling interests, in the table above, represent ARLP's quarterly distributions in accordance with the ARLP partnership agreement.

The Affiliate component of noncontrolling interest represents SGP's cumulative investment basis in the net assets of the ARLP Partnership. After the consummation of the various transactions associated with the ARLP Partnership's formation and initial public offering transaction in 1999 (which included the contribution of net assets by SGP to the ARLP Partnership, the retention by SGP of debt borrowings assumed by ARLP and a distribution by ARLP to SGP), SGP's investment basis in ARLP totaled $(303.9) million. SGP's investment basis as of September 30, 2011 and December 31, 2010 also reflects the cumulative amount of nominal ARLP income allocations and distributions to SGP and nominal contributions by SGP to ARLP and the Intermediate Partnership to maintain its general partner interests.

The following tables present the change in Partners' Capital for the nine months ended September 30, 2011 and 2010 (in thousands):

	Alliance Holdings GP, L.P.
	Limited Partners' Capital			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interest			Total Partners' Capital
Balance at January 1, 2011	$	330,346		$	(8,138	)	$	135,012		$	457,220
Net income		162,027			—			133,367			295,394
Other comprehensive income		—			99			100			199
Vesting of ARLP Long-Term Incentive Plan		—			—			(2,324	)		(2,324	)
Common unit-based compensation		136			—			4,434			4,570
Reclassification of SERP and Deferred Compensation Plans (Note 10)		682			—			9,223			9,905
Distributions on ARLP common unit-based compensation		—			—			(1,066	)		(1,066	)
Distributions to AHGP Partners		(99,672	)		—			—			(99,672	)
Distributions paid by consolidated partnership to noncontrolling interest		—			—			(56,721	)		(56,721	)
Balance at September 30, 2011	$	393,519		$	(8,039	)	$	222,025		$	607,505

	Alliance Holdings GP, L.P.
	Limited Partners' Capital			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interest			Total Partners' Capital
Balance at January 1, 2010	$	269,742		$	(7,465	)	$	60,423		$	322,700
Net income		126,746			—			103,956			230,702
Other comprehensive income		—			1,061			1,356			2,417
Deconsolidation of MAC		—			—			(1,117	)		(1,117	)
Vesting of ARLP Long-Term Incentive Plan		—			—			(1,265	)		(1,265	)
Common unit-based compensation under ARLP Long-Term Incentive Plan		—			—			2,941			2,941
Distributions on ARLP common unit-based compensation		—			—			(973	)		(973	)
Distributions to AHGP Partners		(83,808	)		—			—			(83,808	)
Distributions paid by consolidated partnership to noncontrolling interest		—			—			(50,269	)		(50,269	)
Balance at September 30, 2010	$	312,680		$	(6,404	)	$	115,052		$	421,328