SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2019


	Illinois						Other and		Elimination
	Basin		Appalachia		Minerals		Corporate		(1)		Consolidated
	(in thousands)
Year Ended December 31, 2019

Revenues - Outside	$	1,219,618	$	644,389	$	53,036	$	44,677	$	—	$	1,961,720
Revenues - Intercompany		16,690		—		—		12,173		(28,863)		—
Total revenues (2)		1,236,308		644,389		53,036		56,850		(28,863)		1,961,720

Segment Adjusted EBITDA Expense (3)		756,423		423,623		7,811		36,845		(19,806)		1,204,896
Segment Adjusted EBITDA (4)		385,200		215,950		46,997		32,911		(9,057)		672,001
Total assets		1,373,516		500,027		643,213		541,261		(471,323)		2,586,694
Capital expenditures (5)		189,270		111,739		—		4,849		—		305,858

Year Ended December 31, 2018

Revenues - Outside	$	1,289,898	$	643,898	$	—	$	69,061	$	—	$	2,002,857
Revenues - Intercompany		31,191		67		—		12,431		(43,689)		—
Total revenues (2)		1,321,089		643,965		—		81,492		(43,689)		2,002,857

Segment Adjusted EBITDA Expense (3)		796,370		398,243		—		52,321		(35,134)		1,211,800
Segment Adjusted EBITDA (4)		417,773		240,286		21,323		44,864		(8,555)		715,691
Total assets		1,380,912		440,518		161,312		589,010		(177,004)		2,394,748
Capital expenditures		166,468		64,037		—		2,975		—		233,480

Year Ended December 31, 2017

Revenues - Outside	$	1,069,767	$	623,720	$	—	$	102,733	$	—	$	1,796,220
Revenues - Intercompany		56,097		2,321		—		12,016		(70,434)		—
Total revenues (2)		1,125,864		626,041		—		114,749		(70,434)		1,796,220

Segment Adjusted EBITDA Expense (3)		692,199		385,802		—		75,851		(61,665)		1,092,187
Segment Adjusted EBITDA (4)		398,080		234,124		13,297		45,296		(8,769)		682,028
Total assets		1,437,627		470,892		147,970		349,918		(187,036)		2,219,371
Capital expenditures		94,374		48,358		—		2,356		—		145,088

(1)

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

(2)	Revenues included in the Other and Corporate column are primarily attributable to the outside and affiliate revenues at the Matrix Group and coal brokerage activities. In additions, Other and Corporate includes affiliate revenues for administrative and Wildcat Insurance services.

(3)	Segment Adjusted EBITDA Expense includes operating expenses, coal purchases and other income. Transportation expenses are excluded as transportation revenues are recognized in an amount equal to transportation expenses when title passes to the customer.

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


	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Segment Adjusted EBITDA Expense	$	1,204,896	$	1,211,800	$	1,092,187
Outside coal purchases		(23,357)		(1,466)		—
Other income (expense)		561		(2,621)		(332)
Operating expenses (excluding depreciation, depletion and amortization)	$	1,182,100	$	1,207,713	$	1,091,855

(4)

Segment Adjusted EBITDA is defined as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization, general and administrative expense, settlement gain, debt extinguishment loss, asset impairment and acquisition gain. Management therefore is able to focus solely on the evaluation of segment operating profitability as it relates to our 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,
	2019		2018		2017
	(in thousands)
Consolidated Segment Adjusted EBITDA	$	672,001	$	715,691	$	682,028
General and administrative		(72,997)		(68,298)		(61,760)
Depreciation, depletion and amortization		(309,075)		(280,225)		(268,981)
Settlement gain		—		80,000		—
Asset impairment		(15,190)		(40,483)		—
Interest expense, net		(45,496)		(40,059)		(39,291)
Acquisition gain		177,043		—		—
Debt extinguishment loss		—		—		(8,148)
Income tax (expense) benefit		211		(22)		(210)
Acquisition gain attributable to noncontrolling interest		(7,083)		—		—
Net income attributable to ARLP	$	399,414	$	366,604	$	303,638
Noncontrolling interest		7,512		866		563
Net income	$	406,926	$	367,470	$	304,201

(5)	Capital Expenditures shown exclude the AllDale Acquisition on January 3, 2019 and the Wing Acquisition on August 2, 2019 (Note 3 – Acquisitions).

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


	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Segment Adjusted EBITDA Expense	$	1,204,896	$	1,211,800	$	1,092,187
Outside coal purchases		(23,357)		(1,466)		—
Other income (expense)		561		(2,621)		(332)
Operating expenses (excluding depreciation, depletion and amortization)	$	1,182,100	$	1,207,713	$	1,091,855

Reconciliation of consolidated Segment Adjusted EBITDA to net income


	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Consolidated Segment Adjusted EBITDA	$	672,001	$	715,691	$	682,028
General and administrative		(72,997)		(68,298)		(61,760)
Depreciation, depletion and amortization		(309,075)		(280,225)		(268,981)
Settlement gain		—		80,000		—
Asset impairment		(15,190)		(40,483)		—
Interest expense, net		(45,496)		(40,059)		(39,291)
Acquisition gain		177,043		—		—
Debt extinguishment loss		—		—		(8,148)
Income tax (expense) benefit		211		(22)		(210)
Acquisition gain attributable to noncontrolling interest		(7,083)		—		—
Net income attributable to ARLP	$	399,414	$	366,604	$	303,638
Noncontrolling interest		7,512		866		563
Net income	$	406,926	$	367,470	$	304,201