6. Acquired Sales Contracts

Coal supply agreements (sales contracts) acquired in a business combination are capitalized at their fair value and amortized over the tons of coal shipped during the term of the contract. The fair value of a sales contract is determined by discounting the cash flows attributable to the difference between the contract price and the prevailing forward prices for the tons under contract at the date of acquisition. Below are the acquired sales contracts reflected in the condensed consolidated balance sheets:


		September 30, 2011						December 31, 2010
		Assets		Liabilities				Assets			Liabilities
		(In thousands)						(In thousands)
Acquired fair value	$	145,213		$	170,341		$	114,453		$	40,654
Accumulated amortization		(105,845	)		(42,877	)		(82,376	)		(14,613	)
Total	$	39,368		$	127,464		$	32,077		$	26,041
Net total				$	88,096		$	6,036

Balance Sheet classification:
Other current	$	23,474		$	58,049		$	25,063		$	5,615
Other noncurrent	$	15,894		$	69,415		$	7,014		$	20,426

Above-market contracts with a fair value of $30.8 million and below-market contracts with a fair value of $129.7 million were acquired from ICG. Of these amounts, $13.7 million and $52.3 million were classified as current assets and current liabilities, respectively, at September 30, 2011. See Note 3, "Business Combinations" for discussion of purchase price adjustments.

The Company anticipates amortization income of all acquired sales contracts, based upon the fair value assigned to acquired ICG sales contracts and expected shipments in the next five years, to be approximately $29 million for the remainder of 2011, $20 million in 2012, $7 million in 2013, $8 million in 2014, $13 million in 2015 and $8 million in 2016.