CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

12 Months Ended

Dec. 31, 2016

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. Illinois Basin and Appalachia segments as well as Other and Corporate have revenues from all of the major customers.  Total revenues from major customers, including transportation revenues, which are at least ten percent of total revenues, are as follows:

	Year Ended December 31,
	2016		2015		2014
	(in thousands)
Customer A	$	253,465	$	343,483	$	301,191
Customer B		241,255		305,048		276,094
Customer C		265,642		312,150		317,745

Trade accounts receivable from these customers totaled approximately $42.5 million and $48.4 million at December 31, 2016 and 2015, 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, 2019 for customer B and 2018 for customer C.