CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

12 Months Ended

Dec. 31, 2017

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. For the year ended December 31, 2017, the ARLP Partnership had no customer from which total revenues including transportation revenues were at least ten percent of its total revenues, therefore considered to be a major customer.  For the years ended December 31, 2016 and 2015, the Illinois Basin and Appalachia segments as well as Other and Corporate had total revenues from major customers as follows:

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

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 with these major customers expire in 2018 for customer A, and 2020 for customers B and C.