MERCHANDISE TRUSTS (Tables)

6 Months Ended

Jun. 30, 2020

A reconciliation of the Company’s merchandise trust activities for the six months ended June 30, 2020 and 2019 is presented below (in thousands):

	Six months ended June 30,
	2020			2019
Balance—beginning of period	$	517,192		$	488,248
Contributions		22,779			27,075
Distributions		(37,385	)		(30,938	)
Interest and dividends		11,827			15,479
Capital gain distributions		289			168
Realized gains and losses, net		(516	)		593
Other than temporary impairment		(1,655	)		(2,314	)
Taxes		471			(716	)
Fees		(4,107	)		(1,978	)
Unrealized change in fair value		(24,589	)		23,765
Total		484,306			519,382
Less: Assets held for sale		(11,806	)		—
Balance—end of period	$	472,500		$	519,382

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, 2020 and December 31, 2019 were as follows (in thousands):

June 30, 2020	Fair Value Hierarchy Level	Cost			Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term investments	1	$	104,706		$	—	$	—		$	104,706
Fixed maturities:
U.S. governmental securities	2		355			18		(72	)		301
Corporate debt securities	2		13,472			1,346		(126	)		14,692
Other debt securities	2		23,586			1,826		(9	)		25,403
Total fixed maturities			37,413			3,190		(207	)		40,396
Mutual funds—debt securities	1		22,786			458		(820	)		22,424
Mutual funds—equity securities	1		46,039			2,367		(17,283	)		31,123
Other investment funds⁽¹⁾			230,105			19,853		(13,618	)		236,340
Equity securities	1		45,097			1,519		(11,971	)		34,645
Other invested assets	2		5,355			26		—			5,381
Total investments			491,501			27,413		(43,899	)		475,015
West Virginia Trust Receivable			9,514			—		(221	)		9,293
Total		$	501,015		$	27,413	$	(44,120	)	$	484,308
Less: Assets held for sale			(12,154	)		—		346			(11,808	)
Total		$	488,861		$	27,413	$	(43,774	)	$	472,500

⁽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 six years with three potential one year extensions at the discretion of the funds’ general partners. As of June 30, 2020, there were $45.9 million in unfunded investment commitments to the private credit funds, which are callable at any time.

December 31, 2019	Fair Value Hierarchy Level	Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value
Short-term investments	1	$	144,610		$	—		$	—		$	144,610
Fixed maturities:
U.S. governmental securities	2		456			6			(65	)		397
Corporate debt securities	2		783			14			(133	)		664
Total fixed maturities			1,239			20			(198	)		1,061
Mutual funds—debt securities	1		67,801			1,857			(6	)		69,652
Mutual funds—equity securities	1		46,609			1,744			—			48,353
Other investment funds⁽¹⁾			213,024			6,366			(2,953	)		216,437
Equity securities	1		24,386			1,327			(4	)		25,709
Other invested assets	2		8,360			32			—			8,392
Total investments			506,029			11,346			(3,161	)		514,214
West Virginia Trust Receivable			9,651			—			—			9,651
Total		$	515,680		$	11,346		$	(3,161	)	$	523,865
Less: Assets held for sale			(6,369	)		(304	)		—			(6,673	)
Total		$	509,311		$	11,042		$	(3,161	)	$	517,192

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 six years with three potential one year extensions at the discretion of the funds’ general partners. As of December 31, 2019, there were $57.3 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, 2020 and December 31, 2019 were as follows (in thousands):

June 30, 2020	Less than 1 year		1 year through 5 years		6 years through 10 years		More than 10 years
U.S. governmental securities	$	—	$	110	$	179	$	12
Corporate debt securities		3,824		6,566		4,302		—
Other debt securities		16,034		9,369		—		—
Total fixed maturities	$	19,858	$	16,045	$	4,481	$	12

December 31, 2019	Less than 1 year		1 year through 5 years		6 years through 10 years		More than 10 years
U.S. governmental securities	$	112	$	78	$	193	$	13
Corporate debt securities		101		546		16		—
Total fixed maturities	$	213	$	624	$	209	$	13

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 June 30, 2020 and December 31, 2019 is presented below (in thousands):

	Less than 12 months				12 months or more				Total
June 30, 2020	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities:
U.S. governmental securities	$	29	$	—	$	300	$	72	$	329	$	72
Corporate debt securities		2,087		6		503		120		2,590		126
Other debt securities		6,774		9		—		—		6,774		9
Total fixed maturities		8,890		15		803		192		9,693		207
Mutual funds—debt securities		11,436		472		—		348		11,436		820
Mutual funds—equity securities		25,533		15,900		—		1,383		25,533		17,283
Other investment funds		99,890		13,618		—		—		99,890		13,618
Equity securities		29,642		11,971		—		—		29,642		11,971
Total	$	175,391	$	41,976	$	803	$	1,923	$	176,194	$	43,899

	Less than 12 months				12 months or more				Total
December 31, 2019	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities:
U.S. governmental securities	$	90	$	1	$	397	$	64	$	487	$	65
Corporate debt securities		198		29		424		104		622		133
Total fixed maturities		288		30		821		168		1,109		198
Mutual funds—debt securities		241		6		—		—		241		6
Mutual funds—equity securities		—		—		—		—		—		—
Other investment funds		54,782		2,953		—		—		54,782		2,953
Equity securities		3		4		—		—		3		4
Other invested assets		—		—		—		—		—		—
Total	$	55,314	$	2,993	$	821	$	168	$	56,135	$	3,161