MERCHANDISE TRUSTS (Tables)

9 Months Ended

Sep. 30, 2020

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

	Nine months ended September 30,
	2020			2019
Balance—beginning of period	$	517,192		$	488,248
Contributions		37,178			40,440
Distributions		(49,950	)		(45,256	)
Interest and dividends		22,329			22,537
Capital gain distributions		292			363
Realized gains and losses, net		(1,229	)		2,063
Other than temporary impairment		(1,655	)		(2,816	)
Taxes		(306	)		(655	)
Fees		(5,261	)		(3,206	)
Unrealized change in fair value		(22,271	)		17,811
Total		496,319			519,529
Less: Assets held for sale		(11,799	)		—
Balance—end of period	$	484,520		$	519,529

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 September 30, 2020 and December 31, 2019 were as follows (in thousands):

September 30, 2020	Fair Value Hierarchy Level	Cost			Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term investments	1	$	57,130		$	7	$	—		$	57,137
Fixed maturities:
U.S. governmental securities	2		343			16		(61	)		298
Corporate debt securities	2		10,260			1,853		(129	)		11,984
Other debt securities	2		23,236			2,379		(666	)		24,949
Total fixed maturities			33,839			4,248		(856	)		37,231
Mutual funds—debt securities	1		22,924			552		(591	)		22,885
Mutual funds—equity securities	1		45,861			2,571		(21,478	)		26,954
Other investment funds⁽¹⁾			292,266			23,280		(11,521	)		304,025
Equity securities	1		45,122			4,231		(15,750	)		33,603
Other invested assets	2		5,151			47		(90	)		5,108
Total investments			502,293			34,936		(50,286	)		486,943
West Virginia Trust Receivable			9,597			—		(221	)		9,376
Total		$	511,890		$	34,936	$	(50,507	)	$	496,319
Less: Assets held for sale			(13,430	)		—		1,631			(11,799	)
Total		$	498,460		$	34,936	$	(48,876	)	$	484,520

⁽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 five years with three potential one year extensions at the discretion of the funds’ general partners. As of September 30, 2020, there were $56.4 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 September 30, 2020 and December 31, 2019 were as follows (in thousands):

September 30, 2020	Less than 1 year		1 year through 5 years		6 years through 10 years		More than 10 years
U.S. governmental securities	$	—	$	161	$	125	$	12
Corporate debt securities		15		7,036		4,933		—
Other debt securities		18,058		6,891		—		—
Total fixed maturities	$	18,073	$	14,088	$	5,058	$	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 September 30, 2020 and December 31, 2019 is presented below (in thousands):

	Less than 12 months				12 months or more				Total
September 30, 2020	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities:
U.S. governmental securities	$	29	$	—	$	297	$	61	$	326	$	61
Corporate debt securities		172		2		620		127		792		129
Other debt securities		18,058		666		—		—		18,058		666
Total fixed maturities		18,259		668		917		188		19,176		856
Mutual funds—debt securities		9,684		258		—		333		9,684		591
Mutual funds—equity securities		21,160		20,252		—		1,226		21,160		21,478
Other investment funds		87,421		11,521		—		—		87,421		11,521
Equity securities		20,801		15,749		3		1		20,804		15,750
Other invested assets		—		—		—		90		—		90
Total	$	157,325	$	48,448	$	920	$	1,838	$	158,245	$	50,286

	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