XML 41 R29.htm IDEA: XBRL DOCUMENT

MERCHANDISE TRUSTS (Tables)

6 Months Ended

Jun. 30, 2021

A reconciliation of the Company’s merchandise trust activities for the six months ended June 30, 2021 and 2020 is presented below (in thousands):

	Six months ended June 30,
	2021			2020
Balance—beginning of period	$	516,284		$	517,192
Contributions		28,574			22,779
Distributions		(53,020	)		(37,385	)
Interest and dividends		20,429			11,827
Capital gain distributions		1,650			289
Realized gains and losses, net		3,031			(516	)
Other than temporary impairment		(136	)		(1,655	)
Taxes		(14	)		471
Fees		(3,062	)		(4,107	)
Unrealized change in fair value		30,532			(24,589	)
Total		544,268			484,306
Less: Assets held for sale		—			(11,806	)
Balance—end of period	$	544,268		$	472,500

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, 2021 and December 31, 2020 were as follows (in thousands):

June 30, 2021	Fair Value Hierarchy Level	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term investments	1	$	61,256	$	—	$	—		$	61,256
Fixed maturities:
U.S. governmental securities	2		1		—		—			1
Corporate debt securities	2		2,709		897		—			3,606
Other debt securities	2		—		—		—			—
Total fixed maturities			2,710		897		—			3,607
Mutual funds—debt securities	1		6,097		206		—			6,303
Mutual funds—equity securities	1		26,245		10,742		—			36,987
Other investment funds⁽¹⁾			347,273		44,687		(4,333	)		387,627
Equity securities	1		25,725		9,468		(968	)		34,225
Other invested assets	2		3,777		99		—			3,876
Total investments			473,083		66,099		(5,301	)		533,881
West Virginia Trust Receivable			10,531		—		(144	)		10,387
Total		$	483,614	$	66,099	$	(5,445	)	$	544,268

⁽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 fifteen years with three potential one year extensions at the discretion of the funds’ general partners. As of June 30, 2021, there were $92.1 million in unfunded investment commitments to the private credit funds, which are callable at any time.

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									$	501,453

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 December 31, 2020, there were $47.8 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, 2021 and December 31, 2020 were as follows (in thousands):

June 30, 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		—		3,606		—		—
Other debt securities		—		—		—		—
Total fixed maturities	$	—	$	3,607	$	—	$	—

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	$	—	$	—

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, 2021 and December 31, 2020 is presented below (in thousands):

	Less than 12 months				12 months or more				Total
June 30, 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		4		—		—		—		4		—
Mutual funds—equity securities		—		—		—		—		—		—
Other investment funds		44,497		4,333		—		—		44,497		4,333
Equity securities		2,952		968		—		—		2,952		968
Total	$	47,453	$	5,301	$	917	$	—	$	48,370	$	5,301

	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