MERCHANDISE TRUSTS (Tables)

12 Months Ended

Dec. 31, 2020

A reconciliation of the Company’s merchandise trust activities for the years ended December 31, 2020 and 2019 is presented below (in thousands):

	Year ended December 31,
	2020			2019
Balance—beginning of period	$	523,865		$	488,248
Contributions		51,409			54,742
Distributions		(82,059	)		(59,776	)
Interest and dividends		34,232			29,367
Capital gain distributions		2,330			1,699
Realized gains and losses, net		(1,232	)		3,246
Other than temporary impairment		(26,714	)		(6,056	)
Taxes		(408	)		(556	)
Fees		(7,077	)		(4,268	)
Unrealized change in fair value		21,938			17,219
Total		516,284			523,865
Less: Assets held for sale		(14,831	)		(46,700	)
Balance—end of period	$	501,453		$	477,165

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

December 31, 2020	Fair Value Hierarchy Level	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term investments	1	$	41,039	$	12	$	—		$	41,051
Fixed maturities:
U.S. governmental securities	2		1		—		—			1
Corporate debt securities	2		2,818		638		—			3,456
Other debt securities	2		23,165		1,578		(1,332	)		23,411
Total fixed maturities			25,984		2,216		(1,332	)		26,868
Mutual funds—debt securities	1		6,097		306		—			6,403
Mutual funds—equity securities	1		26,356		43		(154	)		26,245
Other investment funds⁽¹⁾			337,565		32,461		(8,812	)		361,214
Equity securities	1		35,055		5,544		(19	)		40,580
Other invested assets	2		3,875		79		—			3,954
Total investments			475,971		40,661		(10,317	)		506,315
West Virginia Trust Receivable			10,190		—		(221	)		9,969
Total		$	486,161	$	40,661	$	(10,538	)	$	516,284
Less: Assets held for sale										(14,831	)
Total		$	486,161	$	40,661	$	(10,538	)	$	501,453

⁽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 Company’s consolidated 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 December 31, 2020, there were $47.8 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										(46,700	)
Total		$	515,680	$	11,346	$	(3,161	)	$	477,165

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 Company’s consolidated 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 December 31, 2020 and 2019 were as follows (in thousands):

December 31, 2020	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		—		3,456		—		—
Other debt securities		18,392		5,019		—		—
Total fixed maturities	$	18,392	$	8,476	$	—	$	—

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

	Less than 12 months				12 months or more				Total
December 31, 2020	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities:
U.S. governmental securities	$	—	$	—	$	—	$	—	$	—	$	—
Corporate debt securities		—		—		—		—		—		—
Other debt securities		18,392		1,332		—		—		18,392		1,332
Total fixed maturities		18,392		1,332		—		—		18,392		1,332
Mutual funds—debt securities		—		—		—		—		—		—
Mutual funds—equity securities		128		154		—		—		128		154
Other investment funds		75,799		8,812		—		—		75,799		8,812
Equity securities		82		19		—		—		82		19
Total	$	94,401	$	10,317	$	—	$	—	$	94,401	$	10,317

	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
Total	$	55,314	$	2,993	$	821	$	168	$	56,135	$	3,161