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MERCHANDISE TRUSTS (Tables)

6 Months Ended

Jun. 30, 2019

A reconciliation of the Partnership’s merchandise trust activities for the six months ended June 30, 2019 and 2018 is presented below (in thousands):

	Six months ended June 30,
	2019			2018
Balance—beginning of period	$	488,248		$	515,456
Contributions		27,075			31,510
Distributions		(30,938	)		(33,658	)
Interest and dividends		15,479			13,261
Capital gain distributions		168			79
Realized gains and losses, net		593			(941	)
Other than temporary impairment		(2,314	)		(11,154	)
Taxes		(716	)		(355	)
Fees		(1,978	)		(2,014	)
Unrealized change in fair value		23,765			(332	)
Balance—end of period	$	519,382		$	511,852

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, 2019 and December 31, 2018 were as follows (in thousands):

June 30, 2019	Fair Value Hierarchy Level	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term investments	1	$	16,211	$	—	$	—		$	16,211
Fixed maturities:
U.S. governmental securities	2		525		7		(132	)		400
Corporate debt securities	2		867		16		(154	)		729
Total fixed maturities			1,392		23		(286	)		1,129
Mutual funds—debt securities	1		179,111		6,508		(17	)		185,602
Mutual funds—equity securities	1		47,149		6,448		—			53,597
Other investment funds⁽¹⁾			229,256		2,326		(2,083	)		229,499
Equity securities	1		13,708		1,900		(88	)		15,520
Other invested assets	2		8,502		—		—			8,502
Total investments		$	495,329	$	17,205	$	(2,474	)	$	510,060
West Virginia Trust Receivable			9,322		—		—			9,322
Total		$	504,651	$	17,205	$	(2,474	)	$	519,382

⁽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 1 to 30 days, and private credit funds, which have lockup periods of one to seven years with three potential one year extensions at the discretion of the funds’ general partners. As of June 30, 2019, there were $51.1 million in unfunded investment commitments to the private credit funds, which are callable at any time.

December 31, 2018	Fair Value Hierarchy Level	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term investments	1	$	16,903	$	—	$	—		$	16,903
Fixed maturities:
U.S. governmental securities	2		392		—		(147	)		245
Corporate debt securities	2		1,311		29		(328	)		1,012
Total fixed maturities			1,703		29		(475	)		1,257
Mutual funds—debt securities	1		187,840		262		(2,645	)		185,457
Mutual funds—equity securities	1		45,023		110		(18	)		45,115
Other investment funds⁽¹⁾			210,655		388		(7,784	)		203,259
Equity securities	1		18,097		1,327		(213	)		19,211
Other invested assets	2		8,398		2		(17	)		8,383
Total investments		$	488,619	$	2,118	$	(11,152	)	$	479,585
West Virginia Trust Receivable			8,663		—		—			8,663
Total		$	497,282	$	2,118	$	(11,152	)	$	488,248

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 1 to 30 days, and private credit funds, which have lockup periods of two to seven years with three potential one year extensions at the discretion of the funds’ general partners. As of December 31, 2018, there were $71.0 million in unfunded investment commitments to the private credit funds, which are callable at any time

Contractual Maturities of Debt Securities Held in Trusts

The contractual maturities of debt securities as of June 30, 2019 and December 31, 2018 were as follows below (in thousands):

June 30, 2019	Less than 1 year		1 year through 5 years		6 years through 10 years		More than 10 years
U.S. governmental securities	$	112	$	30	$	243	$	15
Corporate debt securities		85		606		38		—
Total fixed maturities	$	197	$	636	$	281	$	15

December 31, 2018	Less than 1 year		1 year through 5 years		6 years through 10 years		More than 10 years
U.S. governmental securities	$	—	$	137	$	108	$	—
Corporate debt securities		68		873		55		16
Total fixed maturities	$	68	$	1,010	$	163	$	16

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, 2019 and December 31, 2018 is presented below (in thousands):

	Less than 12 months				12 months or more				Total
June 30, 2019	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities:
U.S. governmental securities	$	—	$	—	$	604	$	132	$	604	$	132
Corporate debt securities		85		9		706		145		791		154
Total fixed maturities		85		9		1,310		277		1,395		286
Mutual funds—debt securities		149		5		174		12		323		17
Mutual funds—equity securities		7		—		—				7		-
Other investment funds		94,501		2,083		—		—		94,501		2,083
Equity securities		2,043		88		-		—		2,043		88
Other invested assets		—	.			—		—		—		-
Total	$	96,785	$	2,185	$	1,484	$	289	$	98,269	$	2,474

	Less than 12 months				12 months or more				Total
December 31, 2018	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities:
U.S. governmental securities	$	—	$	—	$	243	$	147	$	243	$	147
Corporate debt securities		103		2		549		326		652		328
Total fixed maturities		103		2		792		473		895		475
Mutual funds—debt securities		46,005		2,011		1,195		634		47,200		2,645
Mutual funds—equity securities		131		18		—		—		131		18
Other investment funds		169,929		7,784		—		—		169,929		7,784
Equity securities		—		—		597		213		597		213
Other invested assets		—		4		790		13		790		17
Total	$	216,168	$	9,819	$	3,374	$	1,333	$	219,542	$	11,152