FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2012

FAIR VALUE MEASUREMENTS

15. FAIR VALUE MEASUREMENTS

The Fair Value Measurements and Disclosures topic of the ASC defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. This topic also establishes a fair value hierarchy that gives the highest priority to observable inputs and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy defined by this topic are described below.

Level 1: Quoted market prices available in active markets for identical assets or liabilities. The Company includes short-term investments, consisting primarily of money market funds, U.S. Government debt securities and publicly traded equity securities and mutual funds in its level 1 investments.

Level 2: Quoted prices in active markets for similar assets; quoted prices in non-active markets for identical or similar assets; inputs other than quoted prices that are observable. The Company includes U.S. state and municipal, corporate and other fixed income debt securities in its level 2 investments.

Level 3: Any and all pricing inputs that are generally unobservable and not corroborated by market data.

The following table allocates the Company’s assets measured at fair value as of March 31, 2012 and December 31, 2011.

As of March 31, 2012

Merchandise Trust

Description	Level 1		Level 2		Total
	(in thousands)
Assets
Short-term investments	$	33,340	$	—	$	33,340
Fixed maturities:
U.S. government and federal agency		—		—		—
U.S. state and local government agency		—		23		23
Corporate debt securities		—		10,121		10,121
Other debt securities		—		1,100		1,100
Total fixed maturity investments		—		11,244		11,244
Mutual funds - debt securities		93,486		—		93,486
Mutual funds - equity securities - real estate sector		26,503		—		26,503
Mutual funds - equity securities - energy sector		6,265		—		6,265
Mutual funds - equity securities - MLP’s		21,057		—		21,057
Mutual funds - equity securities - other		73,319		—		73,319
Equity securities
Preferred REIT’s		9,471		—		9,471
Master limited partnerships		41,819		—		41,819
Global equity securities		23,702		—		23,702
Other invested assets		—		7,596		7,596
Total	$	328,962	$	18,840	$	347,802

Perpetual Care Trust

Description	Level 1		Level 2		Total
	(in thousands)
Assets
Short-term investments	$	24,901	$	—	$	24,901
Fixed maturities:
U.S. government and federal agency		517		—		517
U.S. state and local government agency		—		147		147
Corporate debt securities		—		22,824		22,824
Other debt securities		—		371		371
Total fixed maturity investments		517		23,342		23,859
Mutual funds - debt securities		108,415		—		108,415
Mutual funds - equity securities - real estate sector		16,661		—		16,661
Mutual funds - equity securities - energy sector		15,331		—		15,331
Mutual funds - equity securities - MLP’s		14,374		—		14,374
Mutual funds - equity securities - other		14,281		—		14,281
Equity securities
Preferred REIT’s		20,202		—		20,202
Master limited partnerships		28,247		—		28,247
Global equity securities		748		—		748
Other invested assets		—		484		484
Total	$	243,677	$	23,826	$	267,503

As of December 31, 2011

Merchandise Trust

Description	Level 1		Level 2		Total
	(in thousands)
Assets
Short-term investments	$	38,312	$	—	$	38,312
Fixed maturities:
U.S. government and federal agency		—		—		—
U.S. state and local government agency		—		23		23
Corporate debt securities		—		9,765		9,765
Other debt securities		—		1,100		1,100
Total fixed maturity investments		—		10,888		10,888
Mutual funds - debt securities		67,421		—		67,421
Mutual funds - equity securities - real estate sector		22,847		—		22,847
Mutual funds - equity securities - energy sector		28,057		—		28,057
Mutual funds - equity securities - MLP’s		20,308		—		20,308
Mutual funds - equity securities - other		70,076		—		70,076
Equity securities
Preferred REIT’s		9,001		—		9,001
Master limited partnerships		41,469		—		41,469
Global equity securities		21,882		—		21,882
Other invested assets		—		7,360		7,360
Total	$	319,373	$	18,248	$	337,621

Perpetual Care Trust

Description	Level 1		Level 2		Total
	(in thousands)
Assets
Short-term investments	$	22,607	$	—	$	22,607
Fixed maturities:
U.S. government and federal agency		513		—		513
U.S. state and local government agency		—		147		147
Corporate debt securities		—		22,154		22,154
Other debt securities		—		371		371
Total fixed maturity investments		513		22,672		23,185
Mutual funds - debt securities		60,806		—		60,806
Mutual funds - equity securities - real estate sector		24,580		—		24,580
Mutual funds - equity securities - energy sector		20,069		—		20,069
Mutual funds - equity securities - MLP’s		13,515		—		13,515
Mutual funds - equity securities - other		41,334		—		41,334
Equity securities
Preferred REIT’s		19,720		—		19,720
Master limited partnerships		27,998		—		27,998
Global equity securities		695		—		695
Other invested assets		—		170		170
Total	$	231,837	$	22,842	$	254,679

All level 2 assets are priced utilizing independent pricing services. There were no level 3 assets.