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:


	March 31,		December 31,
	2017		2016
	(in thousands)
Noncontrolling interests reflected in Partners' Capital:
Affiliate (SGP)	$	(303,810)	$	(303,818)
Non-Affiliates (ARLP's non-affiliate limited partners)		865,861		836,380
Affiliate (Cavalier Minerals) (See Note 8 - Variable Interest Entities)		5,759		5,550
Accumulated other comprehensive loss attributable to noncontrolling interests		(21,892)		(21,990)
Total noncontrolling interests	$	545,918	$	516,122

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
	March 31,
	2017		2016
	(in thousands)
Net income attributable to noncontrolling interest:
Affiliate (SGP)	$	17	$	6
Non-Affiliates (ARLP's non-affiliate limited partners)		49,386		16,043
Affiliates (Cavalier Minerals)		148		(2)
		49,551		16,047

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


	Three Months Ended
	March 31,
	2017		2016
	(in thousands)
Distributions paid to noncontrolling interests:
Affiliate (SGP) (1)	$	9	$	18
Non-Affiliates (ARLP's non-affiliate limited partners) (1)		19,801		30,370
	$	19,810	$	30,388

(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 March 31, 2017 and December 31, 2016 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 three months ended March 31, 2017 and 2016:


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

Balance at January 1, 2017	$	598,077	$	(16,550)	$	516,122	$	1,097,649
Net income		55,011		—		49,551		104,562
Other comprehensive income		—		155		98		253
Settlement of directors deferred compensation		(14)		—		—		(14)
Vesting of ARLP Long-Term Incentive Plan		—		—		(2,988)		(2,988)
Common unit-based compensation		(103)		—		2,884		2,781
Distributions on ARLP common unit-based compensation		—		—		(862)		(862)
Contributions to consolidated company from affiliate noncontrolling interest		—		—		251		251
Distributions paid by consolidated company		—		—		(190)		(190)
Contributions by limited partner - affiliate		800		—		—		800
Distributions to AHGP Partners		(32,925)		—		—		(32,925)
Distributions paid by consolidated partnership to noncontrolling interest		—		—		(18,948)		(18,948)
Balance at March 31, 2017	$	620,846	$	(16,395)	$	545,918	$	1,150,369


	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		30,842		—		16,047		46,889
Other comprehensive income		—		90		38		128
Settlement of directors deferred compensation		(92)		—		(335)		(427)
Vesting of ARLP Long-Term Incentive Plan		—		—		(1,001)		(1,001)
Common unit-based compensation		60		—		3,135		3,195
Distributions on ARLP common unit-based compensation		—		—		(1,277)		(1,277)
Contributions to consolidated company from affiliate noncontrolling interest		—		—		796		796
Distributions to AHGP Partners		(57,468)		—		—		(57,468)
Distributions paid by consolidated partnership to noncontrolling interest		—		—		(29,111)		(29,111)
Balance at March 31, 2016	$	540,601	$	(14,785)	$	430,040	$	955,856