MERCHANDISE TRUSTS (Tables)

3 Months Ended

Mar. 31, 2022

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Reconciliation of Trust Activities

A reconciliation of the Company’s merchandise trust activities for the three months ended March 31, 2022 and 2021 is presented below (in thousands):

	Three months ended March 31,
	2022			2021
Balance—beginning of period	$	567,853		$	516,284
Contributions		20,752			13,089
Distributions		(20,200	)		(14,801	)
Interest and dividends		13,783			9,594
Capital gain distributions		2,038			379
Realized gains and losses, net		1,587			223
Other than temporary impairment		—			(136	)
Taxes		(67	)		(247	)
Fees		(1,673	)		(805	)
Unrealized change in fair value		5,694			16,454
Total		589,767			540,034
Less: Assets held for sale		—			(15,411	)
Balance—end of period	$	589,767		$	524,623

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 March 31, 2022 and December 31, 2021 were as follows (in thousands):

March 31, 2022	Fair Value Hierarchy Level	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term investments	1	$	43,112	$	—	$	—		$	43,112
Fixed maturities:
U.S. governmental securities	2		1		—		—			1
Corporate debt securities	2		—		—		—			—
Other debt securities	2		—		—		—			—
Total fixed maturities			1		—		—			1
Mutual funds—debt securities	1		6,097		19		(303	)		5,813
Mutual funds—equity securities	1		1,022		213		—			1,235
Other investment funds(1)			479,490		31,690		(3,908	)		507,272
Equity securities	1		15,017		5,814		(2,170	)		18,661
Other invested assets	2		3,735		69		—			3,804
Total investments			548,474		37,805		(6,381	)		579,898
West Virginia Trust Receivable			9,997		—		(128	)		9,869
Total		$	558,471	$	37,805	$	(6,509	)	$	589,767

(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 zero to fourteen years with three potential one year extensions at the discretion of the funds’ general partners. As of March 31, 2022, there were $139.7 million in unfunded investment commitments to the private credit funds, which are callable at any time. This asset class also includes $126.7 million of direct loans which are accounted for at amortized cost, net of unamortized origination fees, if any, and are categorized as Level 3 investments in the fair value hierarchy. The interest rates on these direct loans are consistent with market rates, and their amortized cost approximates fair value.

December 31, 2021	Fair Value Hierarchy Level	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term investments	1	$	51,243	$	—	$	—		$	51,243
Fixed maturities:
U.S. governmental securities	2		1		—		—			1
Corporate debt securities	2		—		1		—			1
Other debt securities	2		—		—		—			—
Total fixed maturities			1		1		—			2
Mutual funds—debt securities	1		6,097		81		(15	)		6,163
Mutual funds—equity securities	1		1,021		245		—			1,266
Other investment funds(1)			457,447		26,008		(4,398	)		479,057
Equity securities	1		14,696		3,316		(2,051	)		15,961
Other invested assets	2		3,766		103		—			3,869
Total investments			534,271		29,754		(6,464	)		557,561
West Virginia Trust Receivable			9,992		300		—			10,292
Total		$	544,263	$	30,054	$	(6,464	)	$	567,853

(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 zero to 15 years with three potential one year extensions at the discretion of the funds’ general partners. As of December 31, 2021, there were $112.4 million in unfunded investment commitments to the private credit funds, which are callable at any time. This asset class also includes $125.4 million of direct loans which are accounted for at amortized cost, net of unamortized origination fees, if any, and are categorized as Level 3 investments in the fair value hierarchy. The interest rates on these direct loans are consistent with market rates, and their amortized cost approximates fair value.

Contractual Maturities of Debt Securities Held in Trusts

The contractual maturities of debt securities as of March 31, 2022 and December 31, 2021 were as follows (in thousands):

March 31, 2022	Less than 1 year		1 year through 5 years		6 years through 10 years		More than 10 years
U.S. governmental securities	$	—	$	1	$	—	$	—
Corporate debt securities		—		—		—		—
Other debt securities		—		—		—		—
Total fixed maturities	$	—	$	1	$	—	$	—

December 31, 2021	Less than 1 year		1 year through 5 years		6 years through 10 years		More than 10 years
U.S. governmental securities	$	—	$	1	$	—	$	—
Corporate debt securities		—		1		—		—
Other debt securities		—		—		—		—
Total fixed maturities	$	—	$	2	$	—	$	—

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

An aging of unrealized losses on the Company’s investments in debt and equity securities within the merchandise trusts as of March 31, 2022 and December 31, 2021 is presented below (in thousands):

	Less than 12 months				12 months or more				Total
March 31, 2022	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities:
U.S. governmental securities	$	—	$	—	$	—	$	—	$	—	$	—
Corporate debt securities		—		—		—		—		—		—
Other debt securities		—		—		—		—		—		—
Total fixed maturities		—		—		—		—		—		—
Mutual funds—debt securities		5,359		303		2		—		5,361		303
Mutual funds—equity securities		1		—		—		—		1		—
Other investment funds		47,530		3,908		—		—		47,530		3,908
Equity securities		463		165		1,891		2,005		2,354		2,170
Total	$	53,353	$	4,376	$	1,893	$	2,005	$	55,246	$	6,381

	Less than 12 months				12 months or more				Total
December 31, 2021	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities:
U.S. governmental securities	$	—	$	—	$	297	$	—	$	297	$	—
Corporate debt securities		—		—		620		—		620		—
Other debt securities		—		—		—		—		—		—
Total fixed maturities		—		—		917		—		917		—
Mutual funds—debt securities		890		15		—		—		890		15
Mutual funds—equity securities		—		—		—		—		—		—
Other investment funds		42,645		4,398		—		—		42,645		4,398
Equity securities		3,108		2,050		1		1		3,109		2,051
Total	$	46,643	$	6,463	$	918	$	1	$	47,561	$	6,464