NONCONTROLLING INTERESTS

12 Months Ended

Dec. 31, 2016

11. NONCONTROLLING INTERESTS

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 (See Note 2 – Summary of Significant Accounting Policies) and an affiliate ownership interest in Cavalier Minerals.

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


	December 31,
	2016		2015
	(in thousands)
Noncontrolling interests reflected in Partners' Capital:
Affiliate (SGP)	$	(303,818)	$	(303,822)
Non-Affiliates (ARLP's non-affiliate limited partners)		836,380		762,667
Affiliate (Cavalier Minerals) (See Note 10 - Variable Interest Entities)		5,550		2,585
Accumulated other comprehensive loss attributable to noncontrolling interests		(21,990)		(19,682)
Total noncontrolling interests	$	516,122	$	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 LTIP, SERP and the MGP Deferred Compensation Plan is also included in the Non-Affiliates component of noncontrolling interest.

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


	Year Ended December 31,
	2016		2015		2014
	(in thousands)
Net income attributable to noncontrolling interest:
Affiliate (SGP)	$	53	$	33	$	74
Non-Affiliates (ARLP's non-affiliate limited partners)		150,426		92,840		208,260
Affiliates (Cavalier Minerals)		140		(27)		(16)
		150,619		92,846	$	208,318

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


	Year Ended December 31,
	2016		2015		2014
	(in thousands)
Distributions paid to noncontrolling interests:
Affiliate (SGP) (1)	$	49	$	67	$	63
Non-Affiliates (ARLP's non-affiliate limited partners) (1)		89,262		117,295		108,350
	$	89,311	$	117,362	$	108,413

(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 IPO 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 December 31, 2016 and 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.