Unconsolidated Subsidiaries

12 Months Ended

Dec. 31, 2015

Equity Method Investments and Joint Ventures [Abstract]

NACoal's wholly owned unconsolidated subsidiaries each meet the definition of a variable interest entity. See Note 1 for a discussion of these entities. The income taxes resulting from the operations of the Unconsolidated Mines are solely the responsibility of the Company. The pre-tax income from the Unconsolidated Mines, excluding NoDak, is reported on the line “Earnings of unconsolidated mines” in the Consolidated Statements of Operations, with related income taxes included in the provision for income taxes. The Company has included the pre-tax earnings of the Unconsolidated Mines, excluding NoDak, above operating profit as they are an integral component of the Company's business and operating results. The pre-tax income from NoDak is reported on the line "Income from other unconsolidated affiliates" in the "Other (income) expense" section of the Consolidated Statements of Operations, with the related income taxes included in the provision for income taxes.

The investment in the Unconsolidated Mines and related tax positions totaled $24.6 million and $28.2 million at December 31, 2015 and 2014, respectively, and is included on the line “Other Non-current Assets” in the Consolidated Balance Sheets. The Company's maximum risk of loss relating to these entities is limited to its invested capital, which was $4.0 million at both December 31, 2015 and December 31, 2014, and $5.4 million at December 31, 2013.

Included in "Accounts receivable from affiliates" on the Consolidated Balance Sheet is $53.2 million as of December 31, 2014 due to NACoal from Coyote Creek. Coyote Creek repaid NACoal the amount outstanding during 2015 as a result of Coyote Creek’s completion of third-party financing.

NACoal is a party to certain guarantees related to Coyote Creek. Under certain circumstances of default or termination of Coyote Creek’s Lignite Sales Agreement (“LSA”), NACoal would be obligated for payment of a "make-whole" amount to Coyote Creek’s third party lenders. The “make-whole” amount is based on the excess, if any, of the discounted value of the remaining scheduled debt payments over the principal amount. In addition, in the event Coyote Creek’s LSA is terminated on or after January 1, 2024 by Coyote Creek’s customers, NACoal is obligated to purchase Coyote Creek’s dragline and rolling stock for the then net book value of those assets. To date, no payments have been required from NACoal since the inception of these guarantees. The Company believes that the likelihood of NACoal’s future performance under the guarantees is remote, and no amounts related to these guarantees have been recorded.

Summarized financial information for the unconsolidated subsidiaries is as follows:



	2015		2014		2013
Statement of Operations
Revenues	$	608,349	$	579,031	$	577,436
Gross profit	$	71,727	$	74,244	$	74,870
Income before income taxes	$	49,641	$	48,592	$	47,953
Net income	$	39,181	$	37,067	$	37,468
Balance Sheet
Current assets	$	160,498	$	143,105
Non-current assets	$	913,402	$	781,475
Current liabilities	$	129,126	$	177,659
Non-current liabilities	$	940,782	$	742,938

NACoal received dividends of $39.1 million and $38.3 million from the unconsolidated subsidiaries in 2015 and 2014, respectively.