7. NONCONTROLLING INTERESTS

Our noncontrolling ownership interest in consolidated subsidiaries is presented in the condensed 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 (See Note 1 – Organization and Presentation) and an affiliate ownership interest in Cavalier Minerals (See Note 8 – Variable Interest Entities).

The following table summarizes the components of noncontrolling interests recorded in Partners' Capital for the periods indicated:


	September 30,		December 31,
	2016		2015
	(in thousands)
Noncontrolling interests reflected in Partners' Capital:
Affiliate (SGP)	$	(303,828)	$	(303,822)
Non-Affiliates (ARLP's non-affiliate limited partners)		794,062		762,667
Affiliate (Cavalier Minerals) (See Note 8 - Variable Interest Entities)		5,122		2,585
Accumulated other comprehensive loss attributable to noncontrolling interests		(19,498)		(19,682)
Total noncontrolling interests	$	475,858	$	441,748

The noncontrolling interest designated as Affiliate (SGP) 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 31,088,338 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 (See Note 11 – Compensation Plans).

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


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
	(in thousands)
Net income attributable to noncontrolling interest:
Affiliate (SGP)	$	14	$	9	$	32	$	35
Non-Affiliates (ARLP's non-affiliate limited partners)		40,279		26,763		92,571		100,468
Affiliates (Cavalier Minerals)		44		(7)		40		(27)
		40,337		26,765		92,643		100,476

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


	Nine Months Ended
	September 30,
	2016		2015
	(in thousands)
Distributions paid to noncontrolling interests:
Affiliate (SGP) (1)	$	38	$	49
Non-Affiliates (ARLP's non-affiliate limited partners) (1)		69,642		87,574
	$	69,680	$	87,623

(1)

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

The Affiliate (SGP) component of noncontrolling interests 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 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, 2016 and December 31, 2015 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, 2016 and 2015:


	Alliance Holdings GP, L.P.
			Accumulated Other
	Limited Partners'		Comprehensive		Noncontrolling		Total Partners'
	Capital		Income (Loss)		Interest		Capital
	(in thousands)

Balance at January 1, 2016	$	567,259	$	(14,875)	$	441,748	$	994,132
Net income		124,722		—		92,643		217,365
Other comprehensive income		—		199		184		383
Settlement of directors deferred compensation		(164)		—		(335)		(499)
Vesting of ARLP Long-Term Incentive Plan		—		—		(1,001)		(1,001)
Common unit-based compensation		237		—		9,802		10,039
Distributions on ARLP common unit-based compensation		—		—		(2,673)		(2,673)
Contributions to consolidated company from affiliate noncontrolling interest		—		—		2,557		2,557
Distributions paid by consolidated company						(60)		(60)
Distributions to AHGP Partners		(123,318)		—		—		(123,318)
Distributions paid by consolidated partnership to noncontrolling interest		—		—		(67,007)		(67,007)
Balance at September 30, 2016	$	568,736	$	(14,676)	$	475,858	$	1,029,918


	Alliance Holdings GP, L.P.
			Accumulated Other
	Limited Partners'		Comprehensive		Noncontrolling		Total Partners'
	Capital		Income (Loss)		Interest		Capital
	(in thousands)

Balance at January 1, 2015	$	580,234	$	(15,456)	$	453,496	$	1,018,274
Net income		182,577		—		100,476		283,053
Other comprehensive income		—		963		1,215		2,178
Settlement of directors deferred compensation		(177)		—		—		(177)
Vesting of ARLP Long-Term Incentive Plan		—		—		(2,719)		(2,719)
Common unit-based compensation		169		—		9,148		9,317
Distributions on ARLP common unit-based compensation		—		—		(1,995)		(1,995)
Contributions to consolidated company from affiliate noncontrolling interest		—		—		1,483		1,483
Distributions to AHGP Partners		(168,365)		—		—		(168,365)
Distributions paid by consolidated partnership to noncontrolling interest		—		—		(85,628)		(85,628)
Balance at September 30, 2015	$	594,438	$	(14,493)	$	475,476	$	1,055,421