PERPETUAL CARE TRUSTS (Tables) - Variable Interest Entity, Primary Beneficiary

6 Months Ended

Jun. 30, 2016

Perpetual care trusts

Reconciliation of Trust Activities

A reconciliation of the Partnership’s perpetual care trust activities for the six months ended June 30, 2016 and 2015 is presented below (in thousands):

	Six months ended June 30,
	2016			2015
Balance, beginning of period	$	307,804		$	345,105
Contributions		5,146			5,766
Distributions		(7,818	)		(6,253	)
Interest and dividends		8,127			8,144
Capital gain distributions		85			35
Realized gains and losses		(470	)		15,296
Taxes		(757	)		(605	)
Fees		(622	)		(1,073	)
Unrealized change in fair value		10,205			(34,305	)
Balance, end of period	$	321,700		$	332,110

Cost and Market Value Associated with Assets Held in Trusts

The cost and market value associated with the assets held in the perpetual care trusts as of June 30, 2016 and December 31, 2015 were as follows (in thousands):

					Gross		Gross
	Fair Value				Unrealized		Unrealized			Fair
June 30, 2016	Hierarchy Level		Cost		Gains		Losses			Value
Short-term investments		1	$	35,904	$	—	$	—		$	35,904
Fixed maturities:
U.S. governmental securities		2		187		17		—			204
Corporate debt securities		2		14,116		262		(570	)		13,808
Total fixed maturities				14,303		279		(570	)		14,012
Mutual funds - debt securities		1		161,372		1,322		(2,312	)		160,382
Mutual funds - equity securities		1		36,838		2,888		(552	)		39,174
Other investment funds (1)				69,073		431		—			69,504
Equity securities		1		1,476		614		(7	)		2,083
Other invested assets		2		79		3		(2	)		80
Total managed investments			$	319,045	$	5,537	$	(3,443	)	$	321,139
Assets acquired via acquisition				561		—		—			561
Total			$	319,606	$	5,537	$	(3,443	)	$	321,700

(1) Other investment funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the balance sheet. This asset class is composed of fixed income funds and equity funds, which have a redemption period ranging from 30 to 90 days, and private credit funds, which have lockup periods ranging from six to ten years with three potential one year extensions at the discretion of the funds’ general partners. As of June 30, 2016 there are $50.1 million in unfunded commitments to the private credit funds, which are callable at any time.

					Gross		Gross
	Fair Value				Unrealized		Unrealized			Fair
December 31, 2015	Hierarchy Level		Cost		Gains		Losses			Value
Short-term investments		1	$	36,618	$	—	$	—		$	36,618
Fixed maturities:
U.S. governmental securities		2		126		14		—			140
Corporate debt securities		2		22,837		57		(845	)		22,049
Other debt securities		2		36		—		(1	)		35
Total fixed maturities				22,999		71		(846	)		22,224
Mutual funds - debt securities		1		184,866		35		(7,180	)		177,721
Mutual funds - equity securities		1		68,079		1,054		(1,713	)		67,420
Equity securities		1		2,319		636		(7	)		2,948
Other invested assets		2		473		1		(162	)		312
Total managed investments			$	315,354	$	1,797	$	(9,908	)	$	307,243
Assets acquired via acquisition				561		—		—			561
Total			$	315,915	$	1,797	$	(9,908	)	$	307,804

Contractual Maturities of Debt Securities Held in Trusts

The contractual maturities of debt securities as of June 30, 2016 were as follows below:

	Less than		1 year through		6 years through		More than
	1 year		5 years		10 years		10 years
U.S. governmental securities	$	111	$	—	$	39	$	54
Corporate debt securities		123		11,915		1,770		—
Total fixed maturities	$	234	$	11,915	$	1,809	$	54

Aging of Unrealized Losses on Investments in Fixed Maturities and Equity Securities Held in Trusts

An aging of unrealized losses on the Partnership’s investments in debt and equity securities within the perpetual care trusts as of June 30, 2016 and December 31, 2015 is presented below (in thousands):

	Less than 12 months				12 Months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
June 30, 2016	Value		Losses		Value		Losses		Value		Losses
Fixed maturities:
Corporate debt securities	$	6,115	$	371	$	2,096	$	199	$	8,211	$	570
Total fixed maturities		6,115		371		2,096		199		8,211		570
Mutual funds - debt securities		21,362		665		39,903		1,647		61,265		2,312
Mutual funds - equity securities		1,496		115		4,181		437		5,677		552
Equity securities		290		7		—		—		290		7
Other invested assets		—		—		67		2		67		2
Total	$	29,263	$	1,158	$	46,247	$	2,285	$	75,510	$	3,443
	Less than 12 months				12 Months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2015	Value		Losses		Value		Losses		Value		Losses
Fixed maturities:
U.S. governmental securities	$	—	$	—	$	112	$	—	$	112	$	—
Corporate debt securities		12,482		535		4,505		310		16,987		845
Other debt securities		35		1		—		—		35		1
Total fixed maturities		12,517		536		4,617		310		17,134		846
Mutual funds - debt securities		81,215		4,263		50,774		2,917		131,989		7,180
Mutual funds - equity securities		16,514		1,363		4,308		350		20,822		1,713
Equity securities		488		6		1,137		1		1,625		7
Other invested assets		—		—		315		162		315		162
Total	$	110,734	$	6,168	$	61,151	$	3,740	$	171,885	$	9,908

Merchandise Trusts

Reconciliation of Trust Activities

A reconciliation of the Partnership’s merchandise trust activities for the six months ended June 30, 2016 and 2015 is presented below (in thousands):

	Six months ended June 30,
	2016			2015
Balance, beginning of period	$	464,676		$	484,820
Contributions		30,259			31,667
Distributions		(29,645	)		(21,231	)
Interest and dividends		11,686			8,391
Capital gain distributions		263			(741	)
Realized gains and losses		2,337			14,453
Taxes		(1,694	)		(3,026	)
Fees		(1,048	)		(1,632	)
Unrealized change in fair value		17,762			(33,774	)
Balance, end of period	$	494,596		$	478,927

Cost and Market Value Associated with Assets Held in Trusts

The cost and market value associated with the assets held in the merchandise trusts as of June 30, 2016 and December 31, 2015 were as follows (in thousands):

					Gross		Gross
	Fair Value				Unrealized		Unrealized			Fair
June 30, 2016	Hierarchy Level		Cost		Gains		Losses			Value
Short-term investments		1	$	28,567	$	—	$	—		$	28,567
Fixed maturities:
U.S. governmental securities		2		96		9		—			105
Corporate debt securities		2		8,854		169		(493	)		8,530
Other debt securities		2		160		—		—			160
Total fixed maturities				9,110		178		(493	)		8,795
Mutual funds - debt securities		1		245,134		3,267		(6,829	)		241,572
Mutual funds - equity securities		1		137,408		5,502		(8,085	)		134,825
Other investment funds (1)				27,458		183		—			27,641
Equity securities		1		40,616		2,386		(3,346	)		39,656
Other invested assets		2		1,630		314		—			1,944
Total managed investments			$	489,923	$	11,830	$	(18,753	)	$	483,000
Assets acquired via acquisition				3,264		—		—			3,264
West Virginia Trust Receivable				8,332		—		—			8,332
Total			$	501,519	$	11,830	$	(18,753	)	$	494,596

(1) Other investment funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the balance sheet. This asset class is composed of fixed income funds and equity funds which have redemption periods ranging from 30 to 90 days.

December 31, 2015	Fair Value Hierarchy Level		Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term investments		1	$	35,150	$	—	$	—		$	35,150
Fixed maturities:
U.S. governmental securities		2		98		6		(3	)		101
Corporate debt securities		2		11,922		8		(546	)		11,384
Other debt securities		2		7,150		11		(7	)		7,154
Total fixed maturities				19,170		25		(556	)		18,639
Mutual funds - debt securities		1		232,096		86		(10,713	)		221,469
Mutual funds - equity securities		1		139,341		69		(12,249	)		127,161
Equity securities		1		49,563		1,127		(2,474	)		48,216
Other invested assets		2		1,681		—		—			1,681
Total managed investments			$	477,001	$	1,307	$	(25,992	)	$	452,316
Assets acquired via acquisition				4,185		—		—			4,185
West Virginia Trust Receivable				8,175		—		—			8,175
Total			$	489,361	$	1,307	$	(25,992	)	$	464,676

Contractual Maturities of Debt Securities Held in Trusts

The contractual maturities of debt securities as of June 30, 2016 were as follows below:

	Less than		1 year through		6 years through		More than
	1 year		5 years		10 years		10 years
U.S. governmental securities	$	11	$	12	$	82	$	—
Corporate debt securities		—		7,202		1,328		—
Other debt securities		160		—		—		—
Total fixed maturities	$	171	$	7,214	$	1,410	$	—

Aging of Unrealized Losses on Investments in Fixed Maturities and Equity Securities Held in Trusts

An aging of unrealized losses on the Partnership’s investments in debt and equity securities within the merchandise trusts as of June 30, 2016 and December 31, 2015 is presented below (in thousands):

	Less than 12 months				12 Months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
June 30, 2016	Value		Losses		Value		Losses		Value		Losses
Fixed maturities:
Corporate debt securities	$	4,385	$	314	$	2,116	$	179	$	6,501	$	493
Total fixed maturities		4,385		314		2,116		179		6,501		493
Mutual funds - debt securities		16,342		463		138,981		6,366		155,323		6,829
Mutual funds - equity securities		11,037		899		55,539		7,186		66,576		8,085
Equity securities		14,913		1,846		7,104		1,500		22,017		3,346
Total	$	46,677	$	3,522	$	203,740	$	15,231	$	250,417	$	18,753

	Less than 12 months				12 Months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2015	Value		Losses		Value		Losses		Value		Losses
Fixed maturities:
U.S. governmental securities	$	—	$	—	$	33	$	3	$	33	$	3
Corporate debt securities		7,247		411		1,513		135		8,760		546
Other debt securities		2,883		7		—		—		2,883		7
Total fixed maturities		10,130		418		1,546		138		11,676		556
Mutual funds - debt securities		121,777		6,938		36,682		3,775		158,459		10,713
Mutual funds - equity securities		58,467		10,994		5,465		1,255		63,932		12,249
Equity securities		21,480		2,275		649		199		22,129		2,474
Total	$	211,854	$	20,625	$	44,342	$	5,367	$	256,196	$	25,992