SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2016


	Illinois				Other and		Elimination
	Basin		Appalachia		Corporate		(1)		Consolidated
	(in thousands)
Year Ended December 31, 2016

Revenues - Outside	$	1,275,543	$	541,108	$	114,372	$	—	$	1,931,023
Revenues - Intercompany		61,617		3,806		17,752		(83,175)		—
Total revenues (2)		1,337,160		544,914		132,124		(83,175)		1,931,023

Segment Adjusted EBITDA Expense (3)		775,851		346,505		89,594		(72,313)		1,139,637
Segment Adjusted EBITDA (4)		538,077		191,694		45,909		(10,862)		764,818
Total assets (6)		1,460,924		480,745		408,798		(152,780)		2,197,687
Capital expenditures		52,505		36,213		2,338		—		91,056

Year Ended December 31, 2015

Revenues - Outside	$	1,527,596	$	584,962	$	160,753	$	—	$	2,273,311
Revenues - Intercompany		108,621		11,337		19,869		(139,827)		—
Total revenues (2)		1,636,217		596,299		180,622		(139,827)		2,273,311

Segment Adjusted EBITDA Expense (3)		949,271		400,681		153,720		(127,247)		1,376,425
Segment Adjusted EBITDA (4)(5)		617,148		183,908		25,767		(12,580)		814,243
Total assets (6)		1,694,044		517,972		269,047		(114,547)		2,366,516
Capital expenditures (7)		145,352		61,279		6,166		—		212,797

Year Ended December 31, 2014

Revenues - Outside	$	1,647,694	$	630,452	$	22,178	$	—	$	2,300,324
Revenues - Intercompany		—		—		11,515		(11,515)		—
Total revenues (2)		1,647,694		630,452		33,693		(11,515)		2,300,324

Segment Adjusted EBITDA Expense (3)		1,000,028		364,689		25,487		(8,396)		1,381,808
Segment Adjusted EBITDA (4) (5)		616,727		254,037		8,202		(3,119)		875,847
Total assets (6)		1,581,279		604,352		262,120		(158,996)		2,288,755
Capital expenditures (7)		243,167		56,840		11,462		—		311,469

(1)

The elimination column represents the elimination of intercompany transactions and is primarily comprised of sales from the Matrix Group and MAC to the ARLP Partnership's mining operations, coal sales and purchases between operations within different segments, sales of receivables to AROP Funding and insurance premiums paid to Wildcat Insurance.

(2)

Revenues included in the Other and Corporate column are primarily attributable to the Matrix Group revenues, Mt. Vernon transloading revenues, administrative service revenues from affiliates, MAC revenues, Wildcat Insurance revenues and brokerage coal sales.

(3)

Segment Adjusted EBITDA Expense includes operating expenses, outside coal purchases and other income. Transportation expenses are excluded as these expenses are passed through to the ARLP Partnership's customers and consequently it does not realize any gain or loss on transportation revenues. We review Segment Adjusted EBITDA Expense per ton for cost trends.

The following is a reconciliation of consolidated Segment Adjusted EBITDA Expense to Operating expenses (excluding depreciation, depletion and amortization):


	Year Ended December 31,
	2016		2015		2014
	(in thousands)
Segment Adjusted EBITDA Expense	$	1,139,637	$	1,376,425	$	1,381,808
Outside coal purchases		(1,514)		(327)		(14)
Other income		725		955		1,566
Operating expenses (excluding depreciation, depletion and amortization)	$	1,138,848	$	1,377,053	$	1,383,360

(4)

Segment Adjusted EBITDA is defined as net income (prior to the allocation of noncontrolling interest) before net interest expense, income taxes, depreciation, depletion and amortization, asset impairment, acquisition gain, net and general and administrative expenses. Management therefore is able to focus solely on the evaluation of segment operating profitability as it relates to the ARLP Partnership's revenues and operating expenses, which are primarily controlled by our segments. Consolidated Segment Adjusted EBITDA is reconciled to net income as follows:


	Year Ended December 31,
	2016		2015		2014
	(in thousands)

Consolidated Segment Adjusted EBITDA	$	764,818	$	814,243	$	875,847
General and administrative		(75,087)		(69,076)		(76,699)
Depreciation, depletion and amortization		(322,509)		(333,713)		(274,566)
Asset impairment		—		(100,130)		—
Interest expense, net		(30,655)		(29,693)		(31,913)
Acquisition gain, net		—		22,548		—
Income tax expense		(14)		(21)		—
Net income	$	336,553	$	304,158	$	492,669

(5)

Includes equity in loss of affiliates for the years ended December 31, 2015 and 2014 of $48.5 million and $16.6 million, respectively, for the Illinois Basin segment.

(6)

Total assets at December 31, 2016, 2015 and 2014 include investments in affiliates of $138.8 million, $64.5 million and $12.9 million, respectively, within Other and Corporate. Total assets at December 31, 2014 include investments in affiliate of $211.7 million for the Illinois Basin segment.

(7)

Capital expenditures shown above exclude the Hamilton Acquisition on July 31, 2015, the Patriot acquisition on February 3, 2015, the MAC acquisition on January 1, 2015, purchase of coal supply agreements from Patriot on December 31, 2014 (Note 3 – Acquisitions) and the payment for acquisition of customer contracts in 2016 (see consolidated statements of cash flows).

Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization)


	Year Ended December 31,
	2016		2015		2014
	(in thousands)
Segment Adjusted EBITDA Expense	$	1,139,637	$	1,376,425	$	1,381,808
Outside coal purchases		(1,514)		(327)		(14)
Other income		725		955		1,566
Operating expenses (excluding depreciation, depletion and amortization)	$	1,138,848	$	1,377,053	$	1,383,360

Reconciliation of consolidated Segment Adjusted EBITDA to net income


	Year Ended December 31,
	2016		2015		2014
	(in thousands)

Consolidated Segment Adjusted EBITDA	$	764,818	$	814,243	$	875,847
General and administrative		(75,087)		(69,076)		(76,699)
Depreciation, depletion and amortization		(322,509)		(333,713)		(274,566)
Asset impairment		—		(100,130)		—
Interest expense, net		(30,655)		(29,693)		(31,913)
Acquisition gain, net		—		22,548		—
Income tax expense		(14)		(21)		—
Net income	$	336,553	$	304,158	$	492,669