6.	PERPETUAL CARE TRUSTS

At March 31, 2012, the Company’s perpetual care trusts consisted of the following types of assets:

•

Money Market Funds that invest in low risk short term securities;

•

Publicly traded mutual funds that invest in underlying debt securities;

•

Publicly traded mutual funds that invest in underlying equity securities;

•

Equity investments that are currently paying dividends or distributions. These investments include REIT’s, Master Limited Partnerships;

•

Fixed maturity debt securities issued by various corporate entities;

•

Fixed maturity debt securities issued by the U.S. Government and U.S. Government agencies; and

•

Fixed maturity debt securities issued by U.S. states and local agencies.

All of these investments are classified as Available for Sale as defined by the Investments in Debt and Equity topic of the ASC. Accordingly, all of the assets are carried at fair value. All of these investments are considered to be either Level 1 or Level 2 assets as defined by the Fair Value Measurements and Disclosures topic of the ASC. See Note 15 for further details. There were no Level 3 assets.

The cost and market value associated with the assets held in perpetual care trusts at March 31, 2012 and December 31, 2011 were as follows:


			Gross		Gross
			Unrealized		Unrealized			Fair
As of March 31, 2012	Cost		Gains		Losses			Value
	(in thousands)

Short-term investments	$	24,901	$	—	$	—		$	24,901
Fixed maturities:
U.S. Government and federal agency		408		109		—			517
U.S. State and local government agency		66		81		—			147
Corporate debt securities		22,981		481		(638	)		22,824
Other debt securities		371		—		—			371

Total fixed maturities		23,826		671		(638	)		23,859


Mutual funds - debt securities		107,898		948		(431	)		108,415
Mutual funds - equity securities		57,489		4,832		(1,674	)		60,647

Equity Securities		40,035		9,203		(41	)		49,197
Other invested assets		219		265		—			484

Total	$	254,368	$	15,919	$	(2,784	)	$	267,503


			Gross		Gross
			Unrealized		Unrealized			Fair
As of December 31, 2011	Cost		Gains		Losses			Value
	(in thousands)

Short-term investments	$	22,607	$	—	$	—		$	22,607
Fixed maturities:
U.S. Government and federal agency		408		105		—			513
U.S. State and local government agency		66		81		—			147
Corporate debt securities		23,359		229		(1,434	)		22,154
Other debt securities		371		—		—			371

Total fixed maturities		24,204		415		(1,434	)		23,185


Mutual funds - debt securities		61,700		185		(1,079	)		60,806
Mutual funds - equity securities		104,824		4,295		(9,621	)		99,498

Equity Securities		39,199		9,326		(112	)		48,413
Other invested assets		327		156		(313	)		170

Total	$	252,861	$	14,377	$	(12,559	)	$	254,679

The contractual maturities of debt securities as of March 31, 2012 are as follows:


As of March 31, 2012	Less than 1 year		1 year through 5 years		6 years through 10 years		More than 10 years
	(in thousands)

U.S. Government and federal agency	$	—	$	517	$	—	$	—
U.S. State and local government agency		147		—		—		—
Corporate debt securities		127		19,815		2,882		—
Other debt securities		371		—		—		—

Total fixed maturities	$	645	$	20,332	$	2,882	$	—

An aging of unrealized losses on the Company’s investments in fixed maturities and equity securities at March 31, 2012 and December 31, 2011 held in perpetual care trusts is presented below:


	Less than 12 months				12 Months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of March 31, 2012	Value		Losses		Value		Losses		Value		Losses
	(in thousands)

Fixed maturities:
U.S. Government and federal agency	$	—	$	—	$	—	$	—	$	—	$	—
U.S. State and local government agency		—		—		—		—		—		—
Corporate debt securities		3,886		227		7,761		411		11,647		638
Other debt securities		—		—		—		—		—		—

Total fixed maturities		3,886		227		7,761		411		11,647		638


Mutual funds - debt securites		105		1		3,966		430		4,071		431
Mutual funds - equity securites		8,528		1,674		—		—		8,528		1,674

Equity securities		2,430		39		269		2		2,699		41
Other invested assets		—		—		—		—		—		—

Total	$	14,949	$	1,941	$	11,996	$	843	$	26,945	$	2,784


	Less than 12 months				12 Months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of December 31, 2011	Value		Losses		Value		Losses		Value		Losses
	(in thousands)

Fixed maturities:
U.S. Government and federal agency	$	—	$	—	$	—	$	—	$	—	$	—
U.S. State and local government agency		—		—		—		—		—		—
Corporate debt securities		7,967		727		8,471		707		16,438		1,434
Other debt securities		—		—		—		—		—		—

Total fixed maturities		7,967		727		8,471		707		16,438		1,434


Mutual funds - debt securites		37,956		772		1,675		307		39,631		1,079
Mutual funds - equity securites		21,483		3,023		44,416		6,598		65,899		9,621

Equity securities		2,978		106		351		6		3,329		112
Other invested assets		170		313		—		—		170		313

Total	$	70,554	$	4,941	$	54,913	$	7,618	$	125,467	$	12,559

A reconciliation of the Company’s perpetual care trust activities for the three months ended March 31, 2012 is presented below:


Fair Value @ 12/31/2011		Contributions		Distributions			Interest/ Dividends		Capital Gain Distributions		Realized Gain/ Loss			Taxes			Fees			Unrealized Change in Fair Value		Fair Value @ 3/31/2012
(in thousands)
$	254,679		1,956		(3,293	)		3,718		9		(353	)		(96	)		(434	)		11,317	$	267,503

The Company made net distributions from the trusts of approximately $1.3 million during the three months ended March 31, 2012. During the three months ended March 31, 2012, purchases and sales of securities available for sale included in trust investments were approximately $155.3 million and $156.1 million, respectively.

Other-than-temporary Impairments of Trust Assets

During the three months ended March 31, 2012 and 2011, the Company determined that there were no other than temporary impairments to the investment portfolio in the perpetual care trusts.