STONEMOR PARTNERS LP, 10-Q filed on 8/7/2012
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2012
Aug. 1, 2012
Document Information [Line Items]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jun. 30, 2012 
 
Document Fiscal Year Focus
2012 
 
Document Fiscal Period Focus
Q2 
 
Trading Symbol
STON 
 
Entity Registrant Name
STONEMOR PARTNERS LP 
 
Entity Central Index Key
0001286131 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
19,538,051 
Condensed Consolidated Balance Sheet (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Current assets:
 
 
Cash and cash equivalents
$ 7,787 
$ 12,058 
Accounts receivable, net of allowance
51,908 
48,837 
Prepaid expenses
5,899 
4,266 
Other current assets
15,990 
16,670 
Total current assets
81,584 
81,831 
Long-term accounts receivable, net of allowance
71,098 
68,394 
Cemetery property
302,986 
298,938 
Property and equipment, net of accumulated depreciation
72,948 
73,777 
Merchandise trusts, restricted, at fair value
345,884 
344,515 
Perpetual care trusts, restricted, at fair value
269,223 
254,679 
Deferred financing costs, net of accumulated amortization
9,667 
8,817 
Deferred selling and obtaining costs
71,921 
68,542 
Deferred tax assets
420 
415 
Goodwill
34,091 
32,299 
Other assets
13,608 
16,918 
Total assets
1,273,430 
1,249,125 
Current liabilities:
 
 
Accounts payable and accrued liabilities
25,663 
26,428 
Accrued interest
1,654 
1,632 
Current portion, long-term debt
2,035 
1,487 
Total current liabilities
29,352 
29,547 
Other long-term liabilities
1,977 
2,830 
Long-term debt
211,991 
193,835 
Deferred cemetery revenues, net
462,088 
441,878 
Deferred tax liabilities
16,347 
16,968 
Merchandise liability
125,024 
129,109 
Perpetual care trust corpus
269,223 
254,679 
Total liabilities
1,116,002 
1,068,846 
Commitments and contingencies
   
   
Partners' capital
 
 
General partner
1,288 
2,192 
Common partners
156,140 
178,087 
Total partners' capital
157,428 
180,279 
Total liabilities and partners' capital
$ 1,273,430 
$ 1,249,125 
Condensed Consolidated Statement of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Revenues:
 
 
 
 
Total revenues
$ 61,508 
$ 60,107 
$ 121,095 
$ 109,338 
Costs and Expenses:
 
 
 
 
Selling expense
13,123 
12,187 
24,910 
21,731 
General and administrative expense
7,195 
7,031 
14,388 
13,458 
Corporate overhead (including $210 and $191 in unit-based compensation for the three months ended June 30, 2012 and 2011, and $409 and $381 for the six months ended June 30, 2012 and 2011, respectively)
7,756 
5,986 
14,359 
11,944 
Depreciation and amortization
2,230 
2,042 
4,560 
4,488 
Acquisition related costs
782 
1,025 
1,113 
1,958 
Total cost and expenses
59,712 
56,647 
113,924 
104,343 
Operating profit
1,796 
3,460 
7,171 
4,995 
Expenses related to refinancing
 
 
 
453 
Gain (loss) on termination of operating agreement
(83)
 
1,737 
 
Gain on acquisition
122 
 
122 
 
Early extinguishment of debt
 
 
 
4,010 
Interest expense
4,870 
4,352 
9,836 
9,442 
Net loss before income taxes
(3,035)
(892)
(806)
(8,910)
Income tax expense (benefit)
 
 
 
 
State
97 
(902)
242 
(898)
Federal
(963)
(805)
(909)
(1,613)
Total income tax expense (benefit)
(866)
(1,707)
(667)
(2,511)
Net income (loss)
(2,169)
815 
(139)
(6,399)
General partner's interest in net income (loss) for the period
(43)
16 
(3)
(128)
Limited partners' interest in net income (loss) for the period
(2,126)
799 
(136)
(6,271)
Net income (loss) per limited partner unit (basic and diluted)
(0.11)
0.04 
(0.01)
(0.34)
Weighted average number of limited partners' units outstanding (basic and diluted)
19,375 
19,341 
19,372 
18,529 
Distributions declared per unit
$ 0.585 
$ 0.585 
$ 1.170 
$ 1.170 
Cemetery
 
 
 
 
Revenues:
 
 
 
 
Merchandise
30,337 
31,104 
57,481 
52,539 
Services
11,265 
11,604 
23,347 
22,402 
Investment and other
12,051 
10,036 
23,475 
19,702 
Costs and Expenses:
 
 
 
 
Services
1,415 
1,399 
2,782 
2,724 
Merchandise
5,821 
5,817 
10,874 
9,485 
Cemetery expense
14,775 
15,462 
27,567 
27,548 
Funeral Home
 
 
 
 
Revenues:
 
 
 
 
Merchandise
3,569 
2,957 
7,587 
6,096 
Services
4,286 
4,406 
9,205 
8,599 
Total revenues
8,189 
7,563 
17,462 
15,044 
Costs and Expenses:
 
 
 
 
Services
3,302 
2,803 
6,707 
5,349 
Merchandise
1,107 
1,009 
2,530 
2,215 
Other
2,206 
1,886 
4,134 
3,443 
Depreciation and amortization
518 
169 
1,138 
567 
Total cost and expenses
7,206 
5,867 
14,625 
11,574 
Operating profit
$ 983 
$ 1,696 
$ 2,837 
$ 3,470 
Condensed Consolidated Statement of Operations (Parenthetical) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Corporate overhead, unit-based compensation
$ 210 
$ 191 
$ 409 
$ 381 
Condensed Consolidated Statement of Partners' Capital (USD $)
In Thousands
Total
Common Unit Holders
General Partner
Beginning Balance at Dec. 31, 2011
$ 180,279 
$ 178,087 
$ 2,192 
Issuance of common units
603 
603 
 
Compensation related to UARs
248 
248 
 
Net loss
(139)
(136)
(3)
Cash distribution
(23,563)
(22,662)
(901)
Ending Balance at Jun. 30, 2012
$ 157,428 
$ 156,140 
$ 1,288 
Condensed Consolidated Statement of Cash Flows (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Operating activities:
 
 
Net income (loss)
$ (139)
$ (6,399)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
Cost of lots sold
3,979 
3,281 
Depreciation and amortization
4,560 
4,488 
Unit-based compensation
409 
381 
Accretion of debt discounts
723 
625 
Gain on acquisition
(122)
 
Gain on termination of operating agreement
(1,737)
 
Write-off of deferred financing fees
 
453 
Fees paid related to early extinguishment of debt
 
4,010 
Changes in assets and liabilities that provided (used) cash:
 
 
Accounts receivable
(8,180)
(9,430)
Allowance for doubtful accounts
3,293 
2,473 
Merchandise trust fund
(1,917)
(11,217)
Prepaid expenses
(1,169)
(331)
Other current assets
(860)
(1,505)
Other assets
139 
198 
Accounts payable and accrued and other liabilities
348 
(7,549)
Deferred selling and obtaining costs
(3,380)
(5,263)
Deferred cemetery revenue
23,699 
25,358 
Deferred taxes (net)
(1,000)
(1,745)
Merchandise liability
(4,451)
(954)
Net cash provided by (used in) operating activities
14,195 
(3,126)
Investing activities:
 
 
Cash paid for cemetery property
(3,600)
(2,270)
Purchase of subsidiaries
(3,426)
(3,850)
Cash paid for property and equipment
(1,835)
(3,204)
Net cash used in investing activities
(8,861)
(9,324)
Financing activities:
 
 
Cash distribution
(23,563)
(21,056)
Additional borrowings on long-term debt
29,200 
12,300 
Repayments of long-term debt
(13,422)
(73,924)
Proceeds from public offering
 
103,207 
Proceeds from general partner contribution
 
2,246 
Fees paid related to early extinguishment of debt
 
(4,010)
Cost of financing activities
(1,820)
(1,114)
Net cash provided by (used in) financing activities
(9,605)
17,649 
Net increase in cash and cash equivalents
(4,271)
5,199 
Cash and cash equivalents - Beginning of period
12,058 
7,535 
Cash and cash equivalents - End of period
7,787 
12,734 
Supplemental disclosure of cash flow information
 
 
Cash paid during the period for interest
9,048 
9,552 
Cash paid during the period for income taxes
3,655 
1,710 
Non-cash investing and financing activities
 
 
Acquisition of assets by financing
53 
143 
Issuance of limited partner units for cemetery acquisition
603 
264 
Acquisition of asset by assumption of directly related liability
$ 544 
 
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

StoneMor Partners L.P. (“StoneMor”, the “Company” or the “Partnership”) is a provider of funeral and cemetery products and services in the death care industry in the United States. Through its subsidiaries, StoneMor offers a complete range of funeral merchandise and services, along with cemetery property, merchandise and services, both at the time of need and on a pre-need basis. As of June 30, 2012, the Partnership operated 272 cemeteries, 254 of which are owned, in 26 states and Puerto Rico and owned and operated 71 funeral homes in 18 states and Puerto Rico.

Basis of Presentation

The unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All interim financial data is unaudited. However, in the opinion of management, the interim financial data as of June 30, 2012 and for the three and six months ended June 30, 2012 and 2011 includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. The results of operations for interim periods are not necessarily indicative of the results of operations to be expected for a full year. The December 31, 2011 condensed consolidated balance sheet data was derived from audited financial statements included in the Company’s 2011 Annual Report on Form 10-K (“2011 Form 10-K”) and has been adjusted to include the effects of retrospective adjustments resulting from the Company’s 2011 acquisitions, but does not include all disclosures required by GAAP, which are presented in the Company’s 2011 Form 10-K.

Principles of Consolidation

The unaudited condensed consolidated financial statements include the accounts of each of the Company’s subsidiaries. These statements also include the accounts of the merchandise and perpetual care trusts in which the Company has a variable interest and is the primary beneficiary. The Company operates 18 cemeteries under long-term operating or management contracts. The operations of 16 of these managed cemeteries have been consolidated in accordance with the provisions of Accounting Standards Codification (ASC) 810.

The Company operates 2 cemeteries under long-term operating agreements that do not qualify as acquisitions for accounting purposes. As a result, the Company did not consolidate all of the existing assets and liabilities related to these cemeteries. The Company has consolidated the existing assets and liabilities of each of these cemeteries’ merchandise and perpetual care trusts as variable interest entities since the Company controls and receives the benefits and absorbs any losses from operating these trusts. Under these long-term operating agreements, which are subject to certain termination provisions, the Company is the exclusive operator of these cemeteries. The Company earns revenues related to sales of merchandise, services, and interment rights and incurs expenses related to such sales and the maintenance and upkeep of these cemeteries. Upon termination of these contracts, the Company will retain all of the benefits and related contractual obligations incurred from sales generated during the contract period. The Company has also recognized the existing merchandise liabilities that it assumed as part of these agreements.

Use of Estimates

Preparation of these unaudited condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expense during the reporting periods. As a result, actual results could differ from those estimates. The most significant estimates in the unaudited condensed consolidated financial statements are the valuation of assets in the merchandise trust and perpetual care trust, allowance for cancellations, unit-based compensation, merchandise liability, deferred sales revenue, deferred margin, deferred merchandise trust investment earnings, deferred obtaining costs and income taxes. Deferred sales revenue, deferred margin and deferred merchandise trust investment earnings are included in deferred cemetery revenues, net, on the unaudited condensed consolidated balance sheet.

LONG-TERM ACCOUNTS RECEIVABLE, NET OF ALLOWANCE
LONG-TERM ACCOUNTS RECEIVABLE, NET OF ALLOWANCE
2. LONG-TERM ACCOUNTS RECEIVABLE, NET OF ALLOWANCE

Long-term accounts receivable, net, consist of the following:

 

     As of  
     June 30,
2012		     December 31,
2011		  
     (in thousands)  

Customer receivables

    $ 161,447      $ 151,540   

Unearned finance income

      (18,424 )      (16,727 ) 

Allowance for contract cancellations

      (20,017 )      (17,582 ) 
  

 

 

    

 

 

  
     123,006        117,231   

Less: current portion, net of allowance

      51,908        48,837   
  

 

 

    

 

 

  

Long-term portion, net of allowance

    $ 71,098      $ 68,394   
  

 

 

    

 

 

  

Activity in the allowance for contract cancellations is as follows:

 

     For the six months ended June 30,  
     2012     2011  
     (in thousands)  

Balance - Beginning of period

    $ 17,582      $ 15,832   

Provision for cancellations

      9,791        9,211   

Charge-offs - net

      (7,356 )      (6,853 ) 
  

 

 

    

 

 

  

Balance - End of period

    $ 20,017      $ 18,190   
  

 

 

    

 

 

  
CEMETERY PROPERTY
CEMETERY PROPERTY
3. CEMETERY PROPERTY

Cemetery property consists of the following:

 

     As of  
     June 30,
2012		      December 31,
2011		  
     (in thousands)  

Developed land

    $ 68,770       $ 64,266   

Undeveloped land

      166,227         164,723   

Mausoleum crypts and lawn crypts

      67,989         69,949   
  

 

 

     

 

 

  

Total

    $ 302,986       $ 298,938   
  

 

 

     

 

 

  
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT
4. PROPERTY AND EQUIPMENT

Major classes of property and equipment follow:

 

     As of  
     June 30,
2012		     December 31,
2011		  
     (in thousands)  

Building and improvements

    $ 75,540      $ 75,076   

Furniture and equipment

      38,935        36,863   
  

 

 

    

 

 

  
     114,475        111,939   

Less: accumulated depreciation

      (41,527 )      (38,162 ) 
  

 

 

    

 

 

  

Property and equipment - net

    $ 72,948      $ 73,777   
  

 

 

    

 

 

  

Depreciation expense was $1.7 million and $3.5 million for the three and six months ended June 30, 2012, respectively, as compared to $1.5 million and $2.9 million during the same periods last year.

MERCHANDISE TRUSTS
MERCHANDISE TRUSTS
5. MERCHANDISE TRUSTS

At June 30, 2012, the Company’s merchandise trusts consisted of the following types of assets:

 

•  

Money Market Funds that invest in low risk short term securities;

 

•  

Publicly traded mutual funds that invest in underlying debt securities;

 

•  

Publicly traded mutual funds that invest in underlying equity securities;

 

•  

Equity investments that are currently paying dividends or distributions. These investments include Real Estate Investment Trusts (“REIT’s”), Master Limited Partnerships and global equity securities;

 

•  

Fixed maturity debt securities issued by various corporate entities;

 

•  

Fixed maturity debt securities issued by the U.S. Government and U.S. Government agencies; and

 

•  

Fixed maturity debt securities issued by U.S. states and local government agencies.

All of these investments are classified as Available for Sale as defined by the Investments in Debt and Equity topic of the ASC. Accordingly, all of the assets are carried at fair value. All of these investments are considered to be either Level 1 or Level 2 assets as defined by the Fair Value Measurements and Disclosures topic of the ASC. See Note 15 for further details. There were no Level 3 assets.

The merchandise trusts are variable interest entities (VIE) for which the Company is the primary beneficiary. The assets held in the merchandise trusts are required to be used to purchase the merchandise to which they relate. If the value of these assets falls below the cost of purchasing such merchandise, the Company may be required to fund this shortfall.

The Company has included $7.3 million and $6.9 million of investments held in trust by the West Virginia Funeral Directors Association at June 30, 2012 and December 31, 2011, respectively, in its merchandise trust assets. As required by law, the Company deposits a portion of certain funeral merchandise sales in West Virginia into a trust that is held by the West Virginia Funeral Directors Association. These trusts are recorded at their account value, which approximates fair value.

 

The cost and market value associated with the assets held in merchandise trusts at June 30, 2012 and December 31, 2011 were as follows:

 

As of June 30, 2012

    Cost      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		     Fair
Value		  
     (in thousands)  

Short-term investments

    $ 30,910       $ —         $ —        $ 30,910   

Fixed maturities:

           

U.S. Government and federal agency

      —           —           —          —     

U.S. State and local government agency

      23         —           —          23   

Corporate debt securities

      8,107         66         (250 )      7,923   

Other debt securities

      —           —           —          —     
  

 

 

     

 

 

     

 

 

    

 

 

  

Total fixed maturities

      8,130         66         (250 )      7,946   
  

 

 

     

 

 

     

 

 

    

 

 

  

Mutual funds - debt securities

      90,331         2,066         (1,993 )      90,404   

Mutual funds - equity securities

      139,826         3,818         (6,724 )      136,920   

Equity securities

      67,369         1,370         (4,833 )      63,906   

Other invested assets

      8,413         86         —          8,499   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total managed investments

    $ 344,979       $ 7,406       $ (13,800 )    $ 338,585   
  

 

 

     

 

 

     

 

 

    

 

 

  

West Virginia Trust Receivable

      7,299         —           —          7,299   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total

    $ 352,278       $ 7,406       $ (13,800 )    $ 345,884   
  

 

 

     

 

 

     

 

 

    

 

 

  

 

As of December 31, 2011

    Cost      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		     Fair
Value		  
     (in thousands)  

Short-term investments

    $ 38,312       $ —         $ —        $ 38,312   

Fixed maturities:

           

U.S. Government and federal agency

      —           —           —          —     

U.S. State and local government agency

      23         —           —          23   

Corporate debt securities

      10,537         19         (791 )      9,765   

Other debt securities

      1,100         —           —          1,100   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total fixed maturities

      11,660         19         (791 )      10,888   
  

 

 

     

 

 

     

 

 

    

 

 

  

Mutual funds - debt securities

      68,291         1,711         (2,581 )      67,421   

Mutual funds - equity securities

      148,209         1,939         (8,860 )      141,288   

Equity securities

      71,760         3,723         (3,131 )      72,352   

Other invested assets

      7,326         34         —          7,360   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total managed investments

    $ 345,558       $ 7,426       $ (15,363 )    $ 337,621   
  

 

 

     

 

 

     

 

 

    

 

 

  

West Virginia Trust Receivable

      6,894         —           —          6,894   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total

    $ 352,452       $ 7,426       $ (15,363 )    $ 344,515   
  

 

 

     

 

 

     

 

 

    

 

 

  

The contractual maturities of debt securities as of June 30, 2012 are as follows:

 

As of June 30, 2012

    Less than
1 year		      1 year through
5 years		      6 years through
10 years		      More than
10 years		  
     (in thousands)  

U.S. Government and federal agency

    $ —         $ —         $ —         $ —     

U.S. State and local government agency

      23         —           —           —     

Corporate debt securities

      —           6,010         1,785         128   

Other debt securities

      —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturities

    $ 23       $ 6,010       $ 1,785       $ 128   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

An aging of unrealized losses on the Company’s investments in fixed maturities and equity securities at June 30, 2012 and December 31, 2011 is presented below:

 

     Less than 12 months      12 Months or more      Total  

As of June 30, 2012

    Fair
Value		      Unrealized
Losses		      Fair
Value		      Unrealized
Losses		      Fair
Value		      Unrealized
Losses		  
     (in thousands)  

Fixed maturities:

                  

U.S. Government and federal agency

    $ —         $ —         $ —         $ —         $ —         $ —     

U.S. State and local government agency

      —           —           —           —           —           —     

Corporate debt securities

      2,253         61         2,747         189         5,000         250   

Other debt securities

      —           —           —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturities

      2,253         61         2,747         189         5,000         250   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Mutual funds - debt securities

      40,167         370         27,859         1,623         68,026         1,993   

Mutual funds - equity securities

      6,961         569         58,311         6,155         65,272         6,724   

Equity securities

      26,007         2,017         13,532         2,816         39,539         4,833   

Other invested assets

      —           —           —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 75,388       $ 3,017       $ 102,449       $ 10,783       $ 177,837       $ 13,800   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

     Less than 12 months      12 Months or more      Total  

As of December 31, 2011

    Fair
Value		      Unrealized
Losses		      Fair
Value		      Unrealized
Losses		      Fair
Value		      Unrealized
Losses		  
     (in thousands)  

Fixed maturities:

                  

U.S. Government and federal agency

    $ —         $ —         $ —         $ —         $ —         $ —     

U.S. State and local government agency

      —           —           —           —           —           —     

Corporate debt securities

      4,007         351         4,459         440         8,466         791   

Other debt securities

      —           —           —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturities

      4,007         351         4,459         440         8,466         791   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Mutual funds - debt securities

      19,691         1,109         31,916         1,472         51,607         2,581   

Mutual funds - equity securities

      32,631         970         59,010         7,890         91,641         8,860   

Equity securities

      20,349         1,941         5,775         1,190         26,124         3,131   

Other invested assets

      —           —           —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 76,678       $ 4,371       $ 101,160       $ 10,992       $ 177,838       $ 15,363   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

A reconciliation of the Company’s merchandise trust activities for the six months ended June 30, 2012 is presented below:

 

Fair
Value @
12/31/2011

      Contributions      Distributions     Interest/
Dividends		      Capital
Gain
Distributions		      Realized
Gain/
Loss		      Taxes     Fees     Unrealized
Change in
Fair Value		      Fair
Value  @
6/30/2012		  
(in thousands)  
$ 344,515         26,702         (36,545 )      8,426         105         5,622         (3,309 )      (1,175 )      1,543       $ 345,884   

The Company made net distributions from the trusts of approximately $9.8 million during the six months ended June 30, 2012. During the six months ended June 30, 2012, purchases and sales of securities available for sale included in trust investments were approximately $207.3 million and $218.3 million, respectively. Distributions include $5.8 million of assets that were divested as a result of the termination of an operating agreement during the six months ended June 30, 2012.

Other-than-temporary Impairments of Trust Assets

During the three and six months ended June 30, 2012, the Company determined that there were six securities with an aggregate cost basis of approximately $1.6 million and an aggregate fair value of approximately $0.8 million, resulting in an impairment of $0.8 million, wherein such impairment was considered to be other-than-temporary. During the three and six months ended June 30, 2011, the Company determined that there was a single security with an aggregate cost basis of approximately $0.2 million and an aggregate fair value of approximately $0.1 million, resulting in an impairment of $0.1 million, wherein such impairment was considered to be other-than-temporary. Accordingly, the Company adjusted the cost basis of these assets to their current value and offset this change against deferred revenue. This reduction in deferred revenue will be reflected in earnings in future periods as the underlying merchandise is delivered or the underlying service is performed.

PERPETUAL CARE TRUSTS
PERPETUAL CARE TRUSTS
6. PERPETUAL CARE TRUSTS

At June 30, 2012, the Company’s perpetual care trusts consisted of the following types of assets:

 

•  

Money Market Funds that invest in low risk short term securities;

 

•  

Publicly traded mutual funds that invest in underlying debt securities;

 

•  

Publicly traded mutual funds that invest in underlying equity securities;

 

•  

Equity investments that are currently paying dividends or distributions. These investments include REIT’s, Master Limited Partnerships and global equity securities;

 

•  

Fixed maturity debt securities issued by various corporate entities;

 

•  

Fixed maturity debt securities issued by the U.S. Government and U.S. Government agencies;

 

•  

Fixed maturity debt securities issued by U.S. states and local agencies; and

 

•  

Assets acquired related to the second quarter 2012 acquisition of one cemetery in Illinois (see Note 13). According to the terms of the agreement, the seller was required to liquidate the holdings of the related trusts upon closing and forward the proceeds to the Company as soon as practicable. As of June 30, 2012, the Company had not received these amounts. Accordingly, these assets are shown in a single line item in the disclosures below as “Assets acquired via acquisition” and the cost basis and fair value of such assets are based upon preliminary estimates that the Company is required to make in accordance with Accounting Topic 805.

All of these investments are classified as Available for Sale as defined by the Investments in Debt and Equity topic of the ASC. Accordingly, all of the assets are carried at fair value. All of these investments are considered to be either Level 1 or Level 2 assets as defined by the Fair Value Measurements and Disclosures topic of the ASC. See Note 15 for further details. There were no Level 3 assets.

 

The cost and market value associated with the assets held in perpetual care trusts at June 30, 2012 and December 31, 2011 were as follows:

 

As of June 30, 2012

    Cost      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		     Fair
Value		  
     (in thousands)  

Short-term investment

    $ 15,831       $ —         $ —        $ 15,831   

Fixed maturities:

           

U.S. Government and federal agency

      408         104         —          512   

U.S. State and local government agency

      66         81         —          147   

Corporate debt securities

      23,378         443         (640 )      23,181   

Other debt securities

      371         —           —          371   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total fixed maturities

      24,223         628         (640 )      24,211   
  

 

 

     

 

 

     

 

 

    

 

 

  

Mutual funds - debt securities

      104,118         1,451         (360 )      105,209   

Mutual funds - equity securities

      92,254         3,485         (2,675 )      93,064   

Equity Securities

      23,141         5,300         (313 )      28,128   

Other invested assets

      —           —           —          —     
  

 

 

     

 

 

     

 

 

    

 

 

  

Total managed investments

    $ 259,567       $ 10,864       $ (3,988 )    $ 266,443   
  

 

 

     

 

 

     

 

 

    

 

 

  

Assets acquired via acquisition

      2,780         —           —          2,780   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total

    $ 262,347       $ 10,864       $ (3,988 )    $ 269,223   
  

 

 

     

 

 

     

 

 

    

 

 

  

 

As of December 31, 2011

    Cost      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		     Fair
Value		  
     (in thousands)  

Short-term investment

    $ 22,607       $ —         $ —        $ 22,607   

Fixed maturities:

           

U.S. Government and federal agency

      408         105         —          513   

U.S. State and local government agency

      66         81         —          147   

Corporate debt securities

      23,359         229         (1,434 )      22,154   

Other debt securities

      371         —           —          371   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total fixed maturities

      24,204         415         (1,434 )      23,185   
  

 

 

     

 

 

     

 

 

    

 

 

  

Mutual funds - debt securities

      61,700         185         (1,079 )      60,806   

Mutual funds - equity securities

      104,824         4,295         (9,621 )      99,498   

Equity Securities

      39,199         9,326         (112 )      48,413   

Other invested assets

      327         156         (313 )      170   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total

    $ 252,861       $ 14,377       $ (12,559 )    $ 254,679   
  

 

 

     

 

 

     

 

 

    

 

 

  

The contractual maturities of debt securities as of June 30, 2012 are as follows:

 

As of June 30, 2012

    Less than
1 year		      1 year through
5 years		      6 years through
10 years		      More than
10 years		  
     (in thousands)  

U.S. Government and federal agency

    $ —         $ 512       $ —         $ —     

U.S. State and local government agency

      147         —           —           —     

Corporate debt securities

      51         17,789         4,928         413   

Other debt securities

      371         —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturities

    $ 569       $ 18,301       $ 4,928       $ 413   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

An aging of unrealized losses on the Company’s investments in fixed maturities and equity securities at June 30, 2012 and December 31, 2011 held in perpetual care trusts is presented below:

 

     Less than 12 months      12 Months or more      Total  

As of June 30, 2012

    Fair
Value		      Unrealized
Losses		      Fair
Value		      Unrealized
Losses		      Fair
Value		      Unrealized
Losses		  
     (in thousands)  

Fixed maturities:

                  

U.S. Government and federal agency

    $ —         $ —         $ —         $ —         $ —         $ —     

U.S. State and local government agency

      —           —           —           —           —           —     

Corporate debt securities

      4,437         155         7,803         485         12,240         640   

Other debt securities

      —           —           —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturities

      4,437         155         7,803         485         12,240         640   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Mutual funds - debt securities

      328         18         1,074         342         1,402         360   

Mutual funds - equity securities

      4,178         200         7,704         2,475         11,882         2,675   

Equity securities

      4,298         313         —           —           4,298         313   

Other invested assets

      —           —           —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 13,241       $ 686       $ 16,581       $ 3,302       $ 29,822       $ 3,988   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

     Less than 12 months      12 Months or more      Total  

As of December 31, 2011

    Fair
Value		      Unrealized
Losses		      Fair
Value		      Unrealized
Losses		      Fair
Value		      Unrealized
Losses		  
     (in thousands)  

Fixed maturities:

                  

U.S. Government and federal agency

    $ —         $ —         $ —         $ —         $ —         $ —     

U.S. State and local government agency

      —           —           —           —           —           —     

Corporate debt securities

      7,967         727         8,471         707         16,438         1,434   

Other debt securities

      —           —           —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturities

      7,967         727         8,471         707         16,438         1,434   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Mutual funds - debt securities

      37,956         772         1,675         307         39,631         1,079   

Mutual funds - equity securities

      21,483         3,023         44,416         6,598         65,899         9,621   

Equity securities

      2,978         106         351         6         3,329         112   

Other invested assets

      170         313         —           —           170         313   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 70,554       $ 4,941       $ 54,913       $ 7,618       $ 125,467       $ 12,559   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

A reconciliation of the Company’s perpetual care trust activities for the six months ended June 30, 2012 is presented below:

 

Fair
Value @
12/31/2011

      Contributions      Distributions     Interest/
Dividends		      Capital
Gain
Distributions		      Realized
Gain/
Loss		      Taxes     Fees     Unrealized
Change in
Fair Value		      Fair
Value  @
6/30/2012		  
(in thousands)  
$ 254,679         8,749         (7,414 )      8,292         13         1,150         (413 )      (891 )      5,058       $ 269,223   

The Company made net contributions to the trusts of approximately $1.3 million during the six months ended June 30, 2012. During the six months ended June 30, 2012, purchases and sales of securities available for sale included in trust investments were approximately $220.4 million and $221.7 million, respectively. Contributions include $2.8 million of assets that were acquired through an acquisition during the six months ended June 30, 2012.

Other-than-temporary Impairments of Trust Assets

During the three and six months ended June 30, 2012, the Company determined that there were no other than temporary impairments to the investment portfolio in the perpetual care trusts.

 

During the three and six months ended June 30, 2011, the Company determined that there was a single security with an aggregate cost basis of less than $0.1 million which was substantially impaired, and such impairment was considered to be other-than-temporary. Accordingly, the Company adjusted the cost basis of this asset to its current value and offset this change against the liability for perpetual care trust corpus.

GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS
7. GOODWILL AND INTANGIBLE ASSETS

Goodwill

Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in acquisitions.

A rollforward of goodwill by reportable segment is as follows:

 

     Cemeteries      Funeral         
     Southeast      Northeast      West      Homes      Total  
     (in thousands)  

Balance as of December 31, 2011

    $ 6,054       $ —         $ 11,948       $ 14,297       $ 32,299   

Goodwill resulting from acquisitions during the six months ended June 30, 2012

      200         —           —           1,592         1,792   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Balance as of June 30, 2012

    $ 6,254       $ —         $ 11,948       $ 15,889       $ 34,091   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

During the second quarter of 2012, the Company became aware that it will receive a payment of $3.8 million in a legal settlement related to its fourth quarter 2011 acquisition of cemeteries and funeral homes in Tennessee. In addition, there were other adjustments of $0.3 million related to an increase in merchandise trust assets and a small increase in accounts receivable. These amounts have been recorded retrospectively as a purchase price adjustment for this acquisition resulting in a decrease to goodwill of $4.1 million. This adjustment has been reflected in the table above.

Other Acquired Intangible Assets

The Company has other acquired intangible assets, most of which have been recognized as a result of acquisitions and long-term operating agreements. These amounts are included within other assets on the condensed consolidated balance sheet. All of the intangible assets are subject to amortization. The major classes of intangible assets are as follows:

 

    

As of

June 30, 2012

     Net     

As of

December 31, 2011

     Net  
     Gross Carrying
Amount		      Accumulated
Amortization		     Intangible
Asset		      Gross Carrying
Amount		      Accumulated
Amortization		     Intangible
Asset		  
     (in thousands)  

Amortized Intangible Assets:

                

Underlying contract value

    $ 6,239       $ (463 )    $ 5,776       $ 8,484       $ (546 )    $ 7,938   

Non-compete agreements

      3,872         (1,898 )      1,974         3,820         (1,413 )      2,407   

Other intangible assets

      269         (73 )      196         205         (67 )      138   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total Intangible Assets

    $ 10,380       $ (2,434 )    $ 7,946       $ 12,509       $ (2,026 )    $ 10,483   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

The decrease in the underlying contract value is mostly the result of the Company entering into an amended operating agreement with Kingwood Memorial Park Association. See Note 13 for further details.

LONG-TERM DEBT
LONG-TERM DEBT
8. LONG-TERM DEBT

The Company had the following outstanding debt:

 

     As of  
     June 30,
2012		      December 31,
2011		  
     (in thousands)  

Insurance premium financing

    $ 818       $ 211   

Vehicle Financing

      934         1,147   

Acquisition Credit Facility, due January 2017

      —           10,750   

Revolving Credit Facility, due January 2017

      61,950         33,000   

Note Payable - Greenlawn acquisition

      1,250         1,321   

Note Payable - Nelms acquisition (net of discount)

      427         623   

Note Payable - acquisition non-competes (net of discounts)

      1,662         1,490   

10.25% senior notes, due 2017

      150,000         150,000   
  

 

 

     

 

 

  

Total

      217,041         198,542   

Less current portion

      2,035         1,487   

Less unamortized bond discount

      3,015         3,220   
  

 

 

     

 

 

  

Long-term portion

    $ 211,991       $ 193,835   
  

 

 

     

 

 

  

This note includes a summary of material terms of the Company’s senior notes, senior secured notes, credit facilities and other debt obligations. For a more detailed description of the Company’s long-term debt agreements, see the Company’s 2011 Form 10-K.

10.25% Senior Notes due 2017

The Company has outstanding a $150.0 million aggregate principal amount of 10.25% Senior Notes due 2017 (the “Senior Notes”), with an original issue discount of approximately $4.0 million. The Company pays 10.25% interest per annum on the principal amount of the Senior Notes, payable in cash semi-annually in arrears on June 1 and December 1 of each year. The Senior Notes mature on December 1, 2017.

Credit Facility

On January 19, 2012, the Company entered into the Third Amended and Restated Credit Agreement (the “Credit Agreement”). The terms of the Credit Agreement are substantially the same as the terms of the prior agreement. Capitalized terms which are not defined in the following description shall have the meaning assigned to such terms in the Credit Agreement.

The Credit Agreement provides for a total Revolving Credit Facility of $130.0 million (the “Credit Facility”). Previously, the agreement had an Acquisition Credit Facility and a Revolving Credit Facility with different borrowing limits. The proceeds of the Credit Facility may be used to finance working capital requirements, Permitted Acquisitions and the purchase and construction of mausoleums. The maturity date of the Credit Facility is January 19, 2017.

At June 30, 2012, amounts outstanding under the Credit Facility bear interest at a rate of 3.7%. Amounts borrowed may be either Base Rate Loans or Eurodollar Rate Loans and amounts repaid or prepaid during the term may be reborrowed. Depending on the type of loan, borrowings bear interest at the Base Rate or Eurodollar Rate, plus applicable margins ranging from 1.25% to 2.75% and 2.25% to 3.75%, respectively, depending on the Company’s Consolidated Leverage Ratio. The Base Rate is the highest of the Prime Rate, the Federal Funds Rate plus 0.50%, or the Eurodollar Rate plus 1.0%. The Eurodollar rate is the British Bankers Association LIBOR Rate.

The Credit Agreement requires the Company to pay an unused Commitment Fee, which is calculated based on the amount by which the commitments under the Credit Agreement exceed the outstanding amounts under the Credit Facility. The Commitment Fee Rate under the Credit Agreement ranges from 0.375% to 0.75% depending on the Company’s Consolidated Leverage Ratio.

The Credit Agreement contains restrictive covenants that, among other things, prohibit distributions upon defined events of default, restrict investments and sales of assets and require the Company to maintain certain financial covenants, including specified financial ratios. A material decrease in revenues could cause the Company to breach certain of its financial covenants. Any such breach could allow the Lenders to accelerate the Company’s debt which would have a material adverse effect on the Company’s business, financial condition or results of operations. The Company’s covenants include a Consolidated Leverage Ratio and a Consolidated Debt Service Coverage Ratio. As of June 30, 2012, the Company was in compliance with all applicable financial covenants.

INCOME TAXES
INCOME TAXES
9. INCOME TAXES

As of June 30, 2012, the Company’s taxable corporate subsidiaries had federal net operating loss carryforwards of approximately $152.8 million, which will begin to expire in 2019 and $184.1 million in state net operating losses, a portion of which expires annually.

The Partnership is not a taxable entity for federal and state income tax purposes; rather, the Partnership’s tax attributes (except those of its corporate subsidiaries) are to be included in the individual tax returns of its partners. Neither the Partnership’s financial reporting income, nor the cash distributions to unit-holders, can be used as a substitute for the detailed tax calculations that the Partnership must perform annually for its partners. Net income from the Partnership is not treated as “passive income” for federal income tax purposes. As a result, partners subject to the passive activity loss rules are not permitted to offset income from the Partnership with passive losses from other sources.

The Partnership’s corporate subsidiaries account for their income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The provision for income taxes for the three and six months ended June 30, 2012 and 2011 is based upon the estimated annual effective tax rates expected to be applicable to the Company for 2012 and 2011, respectively. The Company’s effective tax rate differs from its statutory tax rate primarily because the Company’s legal entity structure includes different tax filing entities, including a significant number of partnerships that are not subject to paying tax.

The Company is not currently under examination by any federal or state jurisdictions. The federal statute of limitations and certain state statutes of limitations are open from 2008 forward. Management believes that the accrual for tax liabilities is adequate for all open years. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events. On the basis of present information, it is the opinion of the Company’s management that there are no pending assessments that will result in a material effect on the Company’s consolidated financial statements over the next twelve months.

DEFERRED CEMETERY REVENUES, NET
DEFERRED CEMETERY REVENUES, NET
10. DEFERRED CEMETERY REVENUES, NET

At June 30, 2012 and December 31, 2011, deferred cemetery revenues, net, consisted of the following:

 

     As of  
     June 30,
2012		     December 31,
2011		  
     (in thousands)  

Deferred cemetery revenue

    $ 323,688      $ 306,488   

Deferred merchandise trust revenue

      59,099        50,419   

Deferred merchandise trust unrealized gains (losses)

      (6,394 )      (7,937 ) 

Deferred pre-acquisition margin

      130,289        135,243   

Deferred cost of goods sold

      (44,594 )      (42,335 ) 
  

 

 

    

 

 

  

Deferred cemetery revenues, net

    $ 462,088      $ 441,878   
  

 

 

    

 

 

  

Deferred selling and obtaining costs

    $ 71,921      $ 68,542   

Deferred selling and obtaining costs are carried as an asset on the unaudited condensed consolidated balance sheet in accordance with the Financial Services – Insurance topic of the ASC.

COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES
11. COMMITMENTS AND CONTINGENCIES

Legal

The Company is party to legal proceedings in the ordinary course of its business but does not expect the outcome of any proceedings, individually or in the aggregate, to have a material effect on the Company’s financial position, results of operations or liquidity.

Leases

At June 30, 2012, the Company was committed to operating lease payments for premises, automobiles and office equipment under various operating leases with initial terms ranging from one to ten years and options to renew at varying terms. Expenses under operating leases were $0.7 million and $1.3 million for the three and six months ended June 30, 2012, respectively, and $0.5 million and $1.1 million for the three and six months ended June 30, 2011, respectively.

At June 30, 2012, operating leases will result in future payments in the following approximate amounts:

 

     (in thousands)  

2013

    $ 2,039   

2014

      1,359   

2015

      866   

2016

      799   

2017

      753   

Thereafter

      1,892   
  

 

 

  

Total

    $ 7,708   
  

 

 

  
PARTNERS' CAPITAL
PARTNERS' CAPITAL
12. PARTNERS’ CAPITAL

Unit-Based Compensation

The Company has issued to certain key employees and management unit-based compensation in the form of unit appreciation rights and phantom partnership units.

Compensation expense recognized related to unit appreciation rights and restricted phantom unit awards for the three and six months ended June 30, 2012 and 2011 are summarized in the table below:

 

     Three months ended
June 30,		      Six months ended
June 30,		  
     2012      2011      2012      2011  
     (in thousands)      (in thousands)  

Unit appreciation rights

    $ 129       $ 119       $ 248       $ 239   

Restricted phantom units

      81         72         161         142   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total unit-based compensation expense

    $ 210       $ 191       $ 409       $ 381   
  

 

 

     

 

 

     

 

 

     

 

 

  

As of June 30, 2012, there was approximately $0.9 million in non-vested unit appreciation rights outstanding. These unit appreciation rights will be expensed through the first quarter of 2014.

Other Unit Issuances

On June 6, 2012, the Company issued 13,720 units in connection with an acquisition. See Note 13. On June 21, 2012 and 2011, the Company issued 9,853 units in connection with an acquisition consummated in the second quarter of 2010.

ACQUISITIONS
ACQUISITIONS
13. ACQUISITIONS

First Quarter 2012 Acquisition

In second quarter of 2009, the Company entered into a long-term operating agreement (the “Operating Agreement”) with Kingwood Memorial Park Association (“Kingwood”) wherein the Company became the exclusive operator of the cemetery. At that time, the Operating Agreement did not qualify as an acquisition for accounting purposes. However, the existing merchandise and perpetual care trusts were consolidated as variable interest entities. In addition, merchandise and other liabilities assumed by the Company were also recorded as of the initial contract date. The consideration paid for this transaction, including cash and an assumed liability, exceeded the net assets recorded as of the initial contract date and an intangible asset was recorded for this amount.

In January of 2012, the Company entered into an amended and restated operating agreement (the “Amended Operating Agreement”), that supersedes the Operating Agreement. The Amended Operating Agreement has a term of 40 years and the Company remains the exclusive operator of the cemetery. As consideration for entering into the Amended Operating Agreement, the Company paid $1.7 million in cash and was relieved of a note payable to Kingwood. In addition, the prior trustees of Kingwood have resigned in favor of new trustees appointed by the Company. As a result of the changes in the Amended Operating Agreement, for accounting purposes, the Company has gained control of Kingwood, and acquisition accounting is now applicable.

The table below reflects the Company’s preliminary assessment of the fair value of net assets acquired, the elimination of debt and other assets and the purchase price, which results in the recognition of goodwill recorded in our Cemetery Operations – Southeast segment. These amounts may be retrospectively adjusted as additional information is received.

 

     Preliminary
Assessment		  
     (in thousands)  

Net Assets Acquired:

   

Accounts receivable

    $ 66   

Cemetery property

      3,001   

Property and equipment

      102   
  

 

 

  

Total net assets acquired

      3,169   
  

 

 

  

Assets and Liabilities divested:

   

Note payable to Kingwood

      519   

Intangible asset representing underlying contract value

      (2,236 ) 
  

 

 

  

Fair value of net assets acquired and divested

      1,452   
  

 

 

  

Consideration paid

      1,652   
  

 

 

  

Goodwill from purchase

    $ 200   
  

 

 

  

Second Quarter 2012 Acquisitions

On April 10, 2012, certain subsidiaries of the Company (collectively the “Buyer”) entered into a Stock Purchase Agreement with several individuals (collectively the “Seller”) to purchase all of the stock of Bronswood Cemetery, Inc., an Illinois Corporation. Through the purchase, the Buyer acquired one cemetery in Illinois, including certain related assets, and assumed certain related liabilities. In consideration for the net assets acquired, the Buyer paid the Seller $0.9 million in cash.

The table below reflects the Company’s preliminary assessment of the fair value of net assets acquired, the purchase price and the gain on bargain purchase. These amounts may be retrospectively adjusted as additional information is received.

 

     Preliminary
Assessment		  
     (in thousands)  

Assets:

   

Accounts receivable

    $ 72   

Cemetery property

      842   

Property and equipment

      518   

Perpetual care trusts, restricted, at fair value

      2,780   

Non-compete agreements

      12   
  

 

 

  

Total assets

      4,224   
  

 

 

  

Liabilities:

   

Perpetual care trust corpus

      2,780   

Other liabilities

      24   

Deferred tax liability

      374   
  

 

 

  

Total liabilities

      3,178   
  

 

 

  

Fair value of net assets acquired

      1,046   
  

 

 

  

Consideration paid

      924   
  

 

 

  

Gain on bargain purchase

    $ 122   
  

 

 

  

In addition, on June 6, 2012, certain subsidiaries of the Company (collectively the “Buyer”) entered into a Purchase Agreement with several individuals and Lodi Funeral Home, Inc. (collectively the “Seller”) to purchase certain assets and assume certain liabilities of Lodi Funeral Home, Inc., a California corporation and all of the stock of Lodi All Faiths Cremation, a California corporation. Through the purchase, the Buyer acquired two funeral homes in California including certain related assets, and assumed certain related liabilities. As part of the agreement, the building and underlying real estate of Lodi Funeral Home, Inc. is being leased from the Seller. The lease agreement is a ten year agreement that contains one five year renewal term at the Buyer’s election. In addition, at the end of the original lease or renewal term, the Buyer can elect to purchase the property for fair value less 10% of any rental amounts previously paid under the lease agreement. The Buyer also has a right of first refusal related to any potential sale of the property occurring during the lease term.

In consideration for the net assets acquired, the Buyer paid the Seller $0.85 million in cash and issued 13,720 units, which equates to $0.35 million worth of units. The Buyer will also pay an aggregate amount of $0.6 million in equal quarterly installments commencing on January 2, 2013 in exchange for non-compete agreements with the Seller.

The table below reflects the Company’s preliminary assessment of the fair value of net assets acquired, the purchase price and the resulting goodwill recorded in our Funeral Homes operating segment. These amounts may be retrospectively adjusted as additional information is received.

 

     Preliminary
Assessment		  
     (in thousands)  

Assets:

   

Property and equipment

    $ 48   

Merchandise trusts, restricted, at fair value

      105   

Underlying lease value

      64   

Non-compete agreements

      40   
  

 

 

  

Total assets

      257   
  

 

 

  

Liabilities:

   

Merchandise liabilities

      105   
  

 

 

  

Total liabilities

      105   
  

 

 

  

Fair value of net assets acquired

      152   
  

 

 

  

Consideration paid - cash

      850   

Consideration paid - units

      350   

Fair value of debt assumed for non-compete agreements

      544   
  

 

 

  

Total consideration paid

      1,744   
  
  

 

 

  

Goodwill from purchase

    $ 1,592   
  

 

 

  

First and Second Quarter 2011 Acquisitions

On January 5, 2011, the Operating Company, StoneMor North Carolina LLC, a North Carolina limited liability company and StoneMor North Carolina Subsidiary LLC, a North Carolina limited liability company, each a wholly-owned subsidiary of the Company (collectively the “Buyer”), entered into an Asset Purchase and Sale Agreement (the “1st Quarter Purchase Agreement”) with Heritage Family Services, Inc., a North Carolina corporation and an individual (collectively the “Seller”). Pursuant to the 1st Quarter Purchase Agreement, the Buyer acquired three cemeteries in North Carolina, including certain related assets, and assumed certain related liabilities. In consideration for the net assets acquired, the Buyer paid the Seller $1.7 million in cash.

On June 22, 2011, the Operating Company, StoneMor Missouri LLC, a Missouri limited liability company and StoneMor Missouri Subsidiary LLC, a Missouri limited liability company, each a wholly-owned subsidiary of the Company (collectively the “Buyer”), entered into an Asset Purchase and Sale Agreement (the “2nd Quarter Purchase Agreement”) with SCI International, LLC, a Delaware limited liability company and Keystone America, Inc., a Delaware corporation (collectively the “Seller” or “SCI Missouri”). Pursuant to the 2nd Quarter Purchase Agreement, the Buyer acquired three cemeteries and four funeral homes in Missouri, including certain related assets, and assumed certain related liabilities. In consideration for the net assets acquired, the Buyer paid the Seller $2.15 million in cash.

The table below reflects the Company’s final assessment of the fair value of net assets acquired, the purchase price and the resulting goodwill from these acquisitions. For a detailed breakout of the purchase price for these acquisitions on an individual basis, see our 2011 Form 10-K.

 

     Final
Assessment		  

Assets:

   

Accounts receivable

    $ 191   

Cemetery property

      2,590   

Merchandise trusts, restricted, at fair value

      3,507   

Perpetual care trusts, restricted, at fair value

      1,534   

Property and equipment

      2,144   

Other assets

      100   
  

 

 

  

Total assets

      10,066   
  

 

 

  

Liabilities:

   

Deferred margin

      2,097   

Merchandise liabilities

      2,382   

Perpetual care trust corpus

      1,534   

Deferred tax liability

      525   
  

 

 

  

Total liabilities

      6,538   
  

 

 

  

Fair value of net assets acquired

      3,528   
  

 

 

  

Consideration paid

      3,850   
  

 

 

  

Goodwill from purchase

    $ 322   
  

 

 

  

The results of operations and pro forma results related to the acquisitions made in 2012 and 2011 are not material to the unaudited condensed consolidated financial statements taken as a whole.

The Company has made retrospective adjustments to its fourth quarter 2011 acquisition in Tennessee. See Note 7 for further details.

First Quarter 2012 Contract Termination

During the third quarter of 2010, certain subsidiaries of the Company entered into a long-term operating agreement (the “Operating Agreement”) with the Archdiocese of Detroit (the “Archdiocese”) wherein the Company became the exclusive operator of certain cemeteries in Michigan owned by the Archdiocese. The Operating Agreement did not qualify as an acquisition for accounting purposes. However, the existing merchandise trust had been consolidated as a variable interest entity as the Company controlled and directly benefited from the operations of the merchandise trust. In addition, liabilities assumed were also recorded as of the contract date. As no consideration was paid in this transaction, the Company had recorded a deferred gain of approximately $3.1 million within deferred cemetery revenues, net, which represented the excess of the value of the merchandise trust over the liabilities assumed.

Effective March 31, 2012, the Company and the Archdiocese agreed to terminate the Operating Agreement. As of the termination date, the Company no longer operated these properties. All activity occurring after March 31, 2012 is the responsibility of the Archdiocese and the Company has no remaining obligation to fulfill any merchandise liabilities or responsibility to perform any obligations of the properties.

In the first and second quarters of 2012, the Company received payments of approximately $2.0 million from the Archdiocese as a result of the termination. Consequently, the Company recognized a gain of $1.7 million during the six months ended June 30, 2012, which is the amount by which the payments from the Archdiocese exceeded the value of the net assets transferred to the Archdiocese.

SEGMENT INFORMATION
SEGMENT INFORMATION
14. SEGMENT INFORMATION

The Company is organized into five distinct reportable segments which are classified as Cemetery Operations – Southeast, Cemetery Operations – Northeast, Cemetery Operations – West, Funeral Homes, and Corporate.

The Company has chosen this level of organization of reportable segments due to the fact that a) each reportable segment has unique characteristics that set it apart from other segments; b) the Company has organized its management personnel at these operational levels; and c) it is the level at which the Company’s chief decision makers and other senior management evaluate performance.

 

The cemetery operations segments sell interment rights, caskets, burial vaults, cremation niches, markers and other cemetery related merchandise. The nature of the Company’s customers differs in each of our regionally based cemetery operating segments. Cremation rates in the West region are substantially higher than they are in the Southeast region. Rates in the Northeast region tend to be somewhere between the two. Statistics indicate that customers who select cremation services have certain attributes that differ from customers who select other methods of interment. The disaggregation of cemetery operations into the three distinct regional segments is primarily due to these differences in customer attributes along with the previously mentioned management structure and senior management analysis methodologies.

The Company’s Funeral Homes segment offers a range of funeral-related services such as family consultation, the removal of and preparation of remains and the use of funeral home facilities for visitation. These services are distinctly different than the cemetery merchandise and services sold and provided by the cemetery operations segments.

The Company’s Corporate segment includes various home office selling and administrative expenses that are not allocable to the other operating segments.

Segment information as of and for the three and six months ended June 30, 2012 and 2011 is as follows:

As of and for the three months ended June 30, 2012:

 

     Cemeteries      Funeral                     
     Southeast      Northeast      West      Homes      Corporate     Adjustment     Total  
     (in thousands)  

Revenues

                   

Sales

    $ 23,812       $ 9,545       $ 10,292       $ —         $ —        $ (9,535 )    $ 34,114   

Service and other

      9,255         7,138         7,373         —           —          (4,227 )      19,539   

Funeral home

      —           —           —           8,189         —          (334 )      7,855   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total revenues

      33,067         16,683         17,665         8,189         —          (14,096 )      61,508   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Costs and expenses

                   

Cost of sales

      4,972         2,028         1,739         —           49        (1,552 )      7,236   

Cemetery

      6,746         3,814         4,215         —           —          —          14,775   

Selling

      7,691         3,322         3,395         —           370        (1,655 )      13,123   

General and administrative

      3,813         1,487         1,883         —           12        —          7,195   

Corporate overhead

      —           —           —           —           7,756        —          7,756   

Depreciation and amortization

      510         215         547         518         440        —          2,230   

Funeral home

      —           —           —           6,688         —          (73 )      6,615   

Acquisition related costs

      —           —           —           —           782        —          782   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total costs and expenses

      23,732         10,866         11,779         7,206         9,409        (3,280 )      59,712   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Operating profit

    $ 9,335       $ 5,817       $ 5,886       $ 983       $ (9,409 )    $ (10,816 )    $ 1,796   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total assets

    $ 491,103       $ 291,245       $ 384,949       $ 79,938       $ 26,195      $ —        $ 1,273,430   

Amortization of cemetery property

    $ 1,022       $ 853       $ 275       $ —         $ —        $ (21 )    $ 2,129   

Long lived asset additions

    $ 802       $ 825       $ 2,630       $ 401       $ 194      $ —        $ 4,852   

Goodwill

    $ 6,254       $ —         $ 11,948       $ 15,889       $ —        $ —        $ 34,091   

 

As of and for the six months ended June 30, 2012:

 

     Cemeteries      Funeral                     
     Southeast      Northeast      West      Homes      Corporate     Adjustment     Total  
     (in thousands)  

Revenues

                   

Sales

    $ 44,692       $ 18,003       $ 20,324       $ —         $ —        $ (17,882 )    $ 65,137   

Service and other

      18,783         13,713         14,894         —           —          (8,224 )      39,166   

Funeral home

      —           —           —           17,462         —          (670 )      16,792   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total revenues

      63,475         31,716         35,218         17,462         —          (26,776 )      121,095   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Costs and expenses

                   

Cost of sales

      9,263         3,701         3,403         —           52        (2,763 )      13,656   

Cemetery

      12,451         6,879         8,237         —           —          —          27,567   

Selling

      14,716         6,458         6,607         —           831        (3,702 )      24,910   

General and administrative

      7,436         3,013         3,923         —           16        —          14,388   

Corporate overhead

      —           —           —           —           14,359        —          14,359   

Depreciation and amortization

      1,046         440         1,114         1,138         822        —          4,560   

Funeral home

      —           —           —           13,487         —          (116 )      13,371   

Acquisition related costs

      —           —           —           —           1,113        —          1,113   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total costs and expenses

      44,912         20,491         23,284         14,625         17,193        (6,581 )      113,924   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Operating profit

    $ 18,563       $ 11,225       $ 11,934       $ 2,837       $ (17,193 )    $ (20,195 )    $ 7,171   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total assets

    $ 491,103       $ 291,245       $ 384,949       $ 79,938       $ 26,195      $ —        $ 1,273,430   

Amortization of cemetery property

    $ 2,001       $ 1,413       $ 569       $ —         $ —        $ (3 )    $ 3,980   

Long lived asset additions

    $ 4,765       $ 1,374       $ 3,100       $ 460       $ 606      $ —        $ 10,305   

Goodwill

    $ 6,254       $ —         $ 11,948       $ 15,889       $ —        $ —        $ 34,091   

As of and for the three months ended June 30, 2011:

 

     Cemeteries      Funeral                     
     Southeast      Northeast      West      Homes      Corporate     Adjustment     Total  
     (in thousands)  

Revenues

                   

Sales

    $ 21,223       $ 8,565       $ 12,931       $ —         $ 1      $ (7,926 )    $ 34,794   

Service and other

      7,820         5,618         6,256         —           —          (1,744 )      17,950   

Funeral home

      —           —           —           7,563         —          (200 )      7,363   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total revenues

      29,043         14,183         19,187         7,563         1        (9,870 )      60,107   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Costs and expenses

                   

Cost of sales

      4,354         1,715         2,062         —           —          (915 )      7,216   

Cemetery

      6,076         3,899         5,487         —           —          —          15,462   

Selling

      7,189         2,952         3,784         —           97        (1,835 )      12,187   

General and administrative

      3,292         1,493         2,246         —           —          —          7,031   

Corporate overhead

      —           —           —           —           5,986        —          5,986   

Depreciation and amortization

      427         230         733         169         483        —          2,042   

Funeral home

      —           —           —           5,698         —          —          5,698   

Acquisition related costs

      —           —           —           —           1,025        —          1,025   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total costs and expenses

      21,338         10,289         14,312         5,867         7,591        (2,750 )      56,647   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Operating profit

    $ 7,705       $ 3,894       $ 4,875       $ 1,696       $ (7,590 )    $ (7,120 )    $ 3,460   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total assets

    $ 435,391       $ 287,396       $ 382,551       $ 51,521       $ 32,089      $ —        $ 1,188,948   

Amortization of cemetery property

    $ 1,000       $ 591       $ 215       $ —         $ —        $ (231 )    $ 1,575   

Long lived asset additions

    $ 932       $ 488       $ 1,946       $ 2,092       $ 192      $ —        $ 5,650   

Goodwill

    $ 629       $ —         $ 11,949       $ 5,897       $ —        $ —        $ 18,475   

 

As of and for the six months ended June 30, 2011:

 

     Cemeteries      Funeral                     
     Southeast      Northeast      West      Homes      Corporate     Adjustment     Total  
     (in thousands)  

Revenues

                   

Sales

    $ 39,967       $ 16,533       $ 23,022       $ —         $ 5      $ (20,203 )    $ 59,324   

Service and other

      16,179         11,579         15,071         —           —          (7,510 )      35,319   

Funeral home

      —           —           —           15,044         —          (349 )      14,695   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total revenues

      56,146         28,112         38,093         15,044         5        (28,062 )      109,338   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Costs and expenses

                   

Cost of sales

      8,071         3,316         3,616         —           —          (2,794 )      12,209   

Cemetery

      11,027         6,969         9,552         —           —          —          27,548   

Selling

      13,605         5,770         6,716         —           678        (5,038 )      21,731   

General and administrative

      6,269         3,020         4,172         —           (3 )      —          13,458   

Corporate overhead

      —           —           —           —           11,944        —          11,944   

Depreciation and amortization

      758         444         1,241         567         1,478        —          4,488   

Funeral home

      —           —           —           11,007         —          —          11,007   

Acquisition related costs

      —           —           —           —           1,958        —          1,958   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total costs and expenses

      39,730         19,519         25,297         11,574         16,055        (7,832 )      104,343   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Operating profit

    $ 16,416       $ 8,593       $ 12,796       $ 3,470       $ (16,050 )    $ (20,230 )    $ 4,995   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total assets

    $ 435,391       $ 287,396       $ 382,551       $ 51,521       $ 32,089      $ —        $ 1,188,948   

Amortization of cemetery property

    $ 1,753       $ 1,140       $ 394       $ —         $ —        $ (329 )    $ 2,958   

Long lived asset additions

    $ 3,871       $ 752       $ 3,277       $ 2,040       $ 304      $ —        $ 10,244   

Goodwill

    $ 629       $ —         $ 11,949       $ 5,897       $ —        $ —        $ 18,475   

Results of individual business units are presented based on our management accounting practices and management structure. There is no comprehensive, authoritative body of guidance for management accounting equivalent to accounting principles generally accepted in the United States of America; therefore, the financial results of individual business units are not necessarily comparable with similar information for any other company. The management accounting process uses assumptions and allocations to measure performance of the business units. Methodologies are refined from time to time as management accounting practices are enhanced and businesses change. Revenues and associated expenses are not deferred in accordance with SAB No. 104 therefore, the deferral of these revenues and expenses is provided in the adjustment column to reconcile the Company’s managerial financial statements to those prepared in accordance with GAAP. Pre-need sales revenues included within the sales category consist primarily of the sale of burial lots, burial vaults, mausoleum crypts, grave markers and memorials, and caskets. Management accounting practices included in the Southeast, Northeast, and Western Regions reflect these pre-need sales when contracts are signed by the customer and accepted by the Company. Pre-need sales reflected in the consolidated financial statements, prepared in accordance with GAAP, recognize revenues for the sale of burial lots and mausoleum crypts when the product is constructed and at least 10% of the sales price is collected. With respect to the other products, the consolidated financial statements prepared under GAAP recognize sales revenues when the criteria for delivery under SAB No. 104 are met. These criteria include, among other things, purchase of the product, delivery and installation of the product in the ground, and transfer of title to the customer. In each case, costs are accrued in connection with the recognition of revenues; therefore, the consolidated financial statements reflect Deferred Cemetery Revenue, Net and Deferred Selling and Obtaining Costs on the balance sheet, whereas the Company’s management accounting practices exclude these items.

FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS
15. FAIR VALUE MEASUREMENTS

The Fair Value Measurements and Disclosures topic of the ASC defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. This topic also establishes a fair value hierarchy that gives the highest priority to observable inputs and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy defined by this topic are described below.

Level 1: Quoted market prices available in active markets for identical assets or liabilities. The Company includes short-term investments, consisting primarily of money market funds, U.S. Government debt securities and publicly traded equity securities and mutual funds in its level 1 investments.

 

Level 2: Quoted prices in active markets for similar assets; quoted prices in non-active markets for identical or similar assets; inputs other than quoted prices that are observable. The Company includes U.S. state and municipal, corporate and other fixed income debt securities in its level 2 investments.

Level 3: Any and all pricing inputs that are generally unobservable and not corroborated by market data.

The following table allocates the Company’s assets measured at fair value as of June 30, 2012 and December 31, 2011.

 

As of June 30, 2012

Merchandise Trust

 

Description

    Level 1      Level 2      Total  
     (in thousands)  

Assets

         

Short-term investments

    $ 30,910       $ —         $ 30,910   

Fixed maturities:

         

U.S. government and federal agency

      —           —           —     

U.S. state and local government agency

      —           23         23   

Corporate debt securities

      —           7,923         7,923   

Other debt securities

      —           —           —     
  

 

 

     

 

 

     

 

 

  

Total fixed maturity investments

      —           7,946         7,946   
  

 

 

     

 

 

     

 

 

  

Mutual funds - debt securities

      90,404         —           90,404   

Mutual funds - equity securities - real estate sector

      35,451         —           35,451   

Mutual funds - equity securities - energy sector

      5,361         —           5,361   

Mutual funds - equity securities - MLP’s

      26,866         —           26,866   

Mutual funds - equity securities - other

      69,242         —           69,242   

Equity securities

         

Preferred REIT’s

      1,763         —           1,763   

Master limited partnerships

      39,719         —           39,719   

Global equity securities

      22,424         —           22,424   

Other invested assets

      —           8,499         8,499   
  

 

 

     

 

 

     

 

 

  

Total

    $ 322,140       $ 16,445       $ 338,585   
  

 

 

     

 

 

     

 

 

  

Perpetual Care Trust

 

Description

    Level 1      Level 2      Total  
     (in thousands)  

Assets

         

Short-term investments

    $ 15,831       $ —         $ 15,831   

Fixed maturities:

         

U.S. government and federal agency

      512         —           512   

U.S. state and local government agency

      —           147         147   

Corporate debt securities

      —           23,181         23,181   

Other debt securities

      —           371         371   
  

 

 

     

 

 

     

 

 

  

Total fixed maturity investments

      512         23,699         24,211   
  

 

 

     

 

 

     

 

 

  

Mutual funds - debt securities

      105,209         —           105,209   

Mutual funds - equity securities - real estate sector

      38,085         —           38,085   

Mutual funds - equity securities - energy sector

      11,956         —           11,956   

Mutual funds - equity securities - MLP’s

      29,964         —           29,964   

Mutual funds - equity securities - other

      13,059         —           13,059   

Equity securities

         

Preferred REIT’s

      778         —           778   

Master limited partnerships

      26,649         —           26,649   

Global equity securities

      701         —           701   

Other invested assets

      —           —           —     
  

 

 

     

 

 

     

 

 

  

Total

    $ 242,744       $ 23,699       $ 266,443   
  

 

 

     

 

 

     

 

 

  

 

As of December 31, 2011

Merchandise Trust

 

Description

    Level 1      Level 2      Total  
     (in thousands)  

Assets

         

Short-term investments

    $ 38,312       $ —         $ 38,312   

Fixed maturities:

         

U.S. government and federal agency

      —           —           —     

U.S. state and local government agency

      —           23         23   

Corporate debt securities

      —           9,765         9,765   

Other debt securities

      —           1,100         1,100   
  

 

 

     

 

 

     

 

 

  

Total fixed maturity investments

      —           10,888         10,888   
  

 

 

     

 

 

     

 

 

  

Mutual funds - debt securities

      67,421         —           67,421   

Mutual funds - equity securities - real estate sector

      22,847         —           22,847   

Mutual funds - equity securities - energy sector

      28,057         —           28,057   

Mutual funds - equity securities - MLP’s

      20,308         —           20,308   

Mutual funds - equity securities - other

      70,076         —           70,076   

Equity securities

         

Preferred REIT’s

      9,001         —           9,001   

Master limited partnerships

      41,469         —           41,469   

Global equity securities

      21,882         —           21,882   

Other invested assets

      —           7,360         7,360   
  

 

 

     

 

 

     

 

 

  

Total

    $ 319,373       $ 18,248       $ 337,621   
  

 

 

     

 

 

     

 

 

  

Perpetual Care Trust

 

Description

    Level 1      Level 2      Total  
     (in thousands)  

Assets

         

Short-term investments

    $ 22,607       $ —         $ 22,607   

Fixed maturities:

         

U.S. government and federal agency

      513         —           513   

U.S. state and local government agency

      —           147         147   

Corporate debt securities

      —           22,154         22,154   

Other debt securities

      —           371         371   
  

 

 

     

 

 

     

 

 

  

Total fixed maturity investments

      513         22,672         23,185   
  

 

 

     

 

 

     

 

 

  

Mutual funds - debt securities

      60,806         —           60,806   

Mutual funds - equity securities - real estate sector

      24,580         —           24,580   

Mutual funds - equity securities - energy sector

      20,069         —           20,069   

Mutual funds - equity securities - MLP’s

      13,515         —           13,515   

Mutual funds - equity securities - other

      41,334         —           41,334   

Equity securities

         

Preferred REIT’s

      19,720         —           19,720   

Master limited partnerships

      27,998         —           27,998   

Global equity securities

      695         —           695   

Other invested assets

      —           170         170   
  

 

 

     

 

 

     

 

 

  

Total

    $ 231,837       $ 22,842       $ 254,679   
  

 

 

     

 

 

     

 

 

  

All level 2 assets are priced utilizing independent pricing services. There were no level 3 assets.

SUBSEQUENT EVENTS
SUBSEQUENT EVENTS
16. SUBSEQUENT EVENTS

On July 31, 2012, the Company acquired 9 funeral homes and 4 cemeteries in Florida for $25.0 million in cash and equity. At this time, the Company does not have the information necessary to assess the fair value of net assets acquired and make a preliminary purchase price allocation.

NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
Nature of Operations 

Nature of Operations

StoneMor Partners L.P. (“StoneMor”, the “Company” or the “Partnership”) is a provider of funeral and cemetery products and services in the death care industry in the United States. Through its subsidiaries, StoneMor offers a complete range of funeral merchandise and services, along with cemetery property, merchandise and services, both at the time of need and on a pre-need basis. As of June 30, 2012, the Partnership operated 272 cemeteries, 254 of which are owned, in 26 states and Puerto Rico and owned and operated 71 funeral homes in 18 states and Puerto Rico.

Basis of Presentation 

Basis of Presentation

The unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All interim financial data is unaudited. However, in the opinion of management, the interim financial data as of June 30, 2012 and for the three and six months ended June 30, 2012 and 2011 includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. The results of operations for interim periods are not necessarily indicative of the results of operations to be expected for a full year. The December 31, 2011 condensed consolidated balance sheet data was derived from audited financial statements included in the Company’s 2011 Annual Report on Form 10-K (“2011 Form 10-K”) and has been adjusted to include the effects of retrospective adjustments resulting from the Company’s 2011 acquisitions, but does not include all disclosures required by GAAP, which are presented in the Company’s 2011 Form 10-K.

Principles of Consolidation 

Principles of Consolidation

The unaudited condensed consolidated financial statements include the accounts of each of the Company’s subsidiaries. These statements also include the accounts of the merchandise and perpetual care trusts in which the Company has a variable interest and is the primary beneficiary. The Company operates 18 cemeteries under long-term operating or management contracts. The operations of 16 of these managed cemeteries have been consolidated in accordance with the provisions of Accounting Standards Codification (ASC) 810.

The Company operates 2 cemeteries under long-term operating agreements that do not qualify as acquisitions for accounting purposes. As a result, the Company did not consolidate all of the existing assets and liabilities related to these cemeteries. The Company has consolidated the existing assets and liabilities of each of these cemeteries’ merchandise and perpetual care trusts as variable interest entities since the Company controls and receives the benefits and absorbs any losses from operating these trusts. Under these long-term operating agreements, which are subject to certain termination provisions, the Company is the exclusive operator of these cemeteries. The Company earns revenues related to sales of merchandise, services, and interment rights and incurs expenses related to such sales and the maintenance and upkeep of these cemeteries. Upon termination of these contracts, the Company will retain all of the benefits and related contractual obligations incurred from sales generated during the contract period. The Company has also recognized the existing merchandise liabilities that it assumed as part of these agreements.

Use of Estimates 

Use of Estimates

Preparation of these unaudited condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expense during the reporting periods. As a result, actual results could differ from those estimates. The most significant estimates in the unaudited condensed consolidated financial statements are the valuation of assets in the merchandise trust and perpetual care trust, allowance for cancellations, unit-based compensation, merchandise liability, deferred sales revenue, deferred margin, deferred merchandise trust investment earnings, deferred obtaining costs and income taxes. Deferred sales revenue, deferred margin and deferred merchandise trust investment earnings are included in deferred cemetery revenues, net, on the unaudited condensed consolidated balance sheet.

LONG-TERM ACCOUNTS RECEIVABLE, NET OF ALLOWANCE (Tables)
Long-Term Accounts Receivable, Net 

Long-term accounts receivable, net, consist of the following:

 

     As of  
     June 30,
2012		     December 31,
2011		  
     (in thousands)  

Customer receivables

    $ 161,447      $ 151,540   

Unearned finance income

      (18,424 )      (16,727 ) 

Allowance for contract cancellations

      (20,017 )      (17,582 ) 
  

 

 

    

 

 

  
     123,006        117,231   

Less: current portion, net of allowance

      51,908        48,837   
  

 

 

    

 

 

  

Long-term portion, net of allowance

    $ 71,098      $ 68,394   
  

 

 

    

 

 

  
Activity in Allowance for Contract Cancellations 

Activity in the allowance for contract cancellations is as follows:

 

     For the six months ended June 30,  
     2012     2011  
     (in thousands)  

Balance - Beginning of period

    $ 17,582      $ 15,832   

Provision for cancellations

      9,791        9,211   

Charge-offs - net

      (7,356 )      (6,853 ) 
  

 

 

    

 

 

  

Balance - End of period

    $ 20,017      $ 18,190   
  

 

 

    

 

 

  
PROPERTY AND EQUIPMENT (Tables)
Property and Equipment 

Major classes of property and equipment follow:

 

     As of  
     June 30,
2012		     December 31,
2011		  
     (in thousands)  

Building and improvements

    $ 75,540      $ 75,076   

Furniture and equipment

      38,935        36,863   
  

 

 

    

 

 

  
     114,475        111,939   

Less: accumulated depreciation

      (41,527 )      (38,162 ) 
  

 

 

    

 

 

  

Property and equipment - net

    $ 72,948      $ 73,777   
  

 

 

    

 

 

  
Property and Equipment 

Cemetery property consists of the following:

 

     As of  
     June 30,
2012		      December 31,
2011		  
     (in thousands)  

Developed land

    $ 68,770       $ 64,266   

Undeveloped land

      166,227         164,723   

Mausoleum crypts and lawn crypts

      67,989         69,949   
  

 

 

     

 

 

  

Total

    $ 302,986       $ 298,938   
  

 

 

     

 

 

  
PERPETUAL CARE TRUSTS (Tables) (Variable Interest Entity, Primary Beneficiary)
Cost and Market Value Associated with Assets Held in Trusts 

The cost and market value associated with the assets held in merchandise trusts at June 30, 2012 and December 31, 2011 were as follows:

 

As of June 30, 2012

    Cost      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		     Fair
Value		  
     (in thousands)  

Short-term investments

    $ 30,910       $ —         $ —        $ 30,910   

Fixed maturities:

           

U.S. Government and federal agency

      —           —           —          —     

U.S. State and local government agency

      23         —           —          23   

Corporate debt securities

      8,107         66         (250 )      7,923   

Other debt securities

      —           —           —          —     
  

 

 

     

 

 

     

 

 

    

 

 

  

Total fixed maturities

      8,130         66         (250 )      7,946   
  

 

 

     

 

 

     

 

 

    

 

 

  

Mutual funds - debt securities

      90,331         2,066         (1,993 )      90,404   

Mutual funds - equity securities

      139,826         3,818         (6,724 )      136,920   

Equity securities

      67,369         1,370         (4,833 )      63,906   

Other invested assets

      8,413         86         —          8,499   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total managed investments

    $ 344,979       $ 7,406       $ (13,800 )    $ 338,585   
  

 

 

     

 

 

     

 

 

    

 

 

  

West Virginia Trust Receivable

      7,299         —           —          7,299   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total

    $ 352,278       $ 7,406       $ (13,800 )    $ 345,884   
  

 

 

     

 

 

     

 

 

    

 

 

  

 

As of December 31, 2011

    Cost      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		     Fair
Value		  
     (in thousands)  

Short-term investments

    $ 38,312       $ —         $ —        $ 38,312   

Fixed maturities:

           

U.S. Government and federal agency

      —           —           —          —     

U.S. State and local government agency

      23         —           —          23   

Corporate debt securities

      10,537         19         (791 )      9,765   

Other debt securities

      1,100         —           —          1,100   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total fixed maturities

      11,660         19         (791 )      10,888   
  

 

 

     

 

 

     

 

 

    

 

 

  

Mutual funds - debt securities

      68,291         1,711         (2,581 )      67,421   

Mutual funds - equity securities

      148,209         1,939         (8,860 )      141,288   

Equity securities

      71,760         3,723         (3,131 )      72,352   

Other invested assets

      7,326         34         —          7,360   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total managed investments

    $ 345,558       $ 7,426       $ (15,363 )    $ 337,621   
  

 

 

     

 

 

     

 

 

    

 

 

  

West Virginia Trust Receivable

      6,894         —           —          6,894   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total

    $ 352,452       $ 7,426       $ (15,363 )    $ 344,515   
  

 

 

     

 

 

     

 

 

    

 

 

  
Contractual Maturities of Debt Securities Held in Trusts 

The contractual maturities of debt securities as of June 30, 2012 are as follows:

 

As of June 30, 2012

    Less than
1 year		      1 year through
5 years		      6 years through
10 years		      More than
10 years		  
     (in thousands)  

U.S. Government and federal agency

    $ —         $ —         $ —         $ —     

U.S. State and local government agency

      23         —           —           —     

Corporate debt securities

      —           6,010         1,785         128   

Other debt securities

      —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturities

    $ 23       $ 6,010       $ 1,785       $ 128   
  

 

 

     

 

 

     

 

 

     

 

 

  
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 fixed maturities and equity securities at June 30, 2012 and December 31, 2011 is presented below:

 

     Less than 12 months      12 Months or more      Total  

As of June 30, 2012

    Fair
Value		      Unrealized
Losses		      Fair
Value		      Unrealized
Losses		      Fair
Value		      Unrealized
Losses		  
     (in thousands)  

Fixed maturities:

                  

U.S. Government and federal agency

    $ —         $ —         $ —         $ —         $ —         $ —     

U.S. State and local government agency

      —           —           —           —           —           —     

Corporate debt securities

      2,253         61         2,747         189         5,000         250   

Other debt securities

      —           —           —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturities

      2,253         61         2,747         189         5,000         250   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Mutual funds - debt securities

      40,167         370         27,859         1,623         68,026         1,993   

Mutual funds - equity securities

      6,961         569         58,311         6,155         65,272         6,724   

Equity securities

      26,007         2,017         13,532         2,816         39,539         4,833   

Other invested assets

      —           —           —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 75,388       $ 3,017       $ 102,449       $ 10,783       $ 177,837       $ 13,800   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

     Less than 12 months      12 Months or more      Total  

As of December 31, 2011

    Fair
Value		      Unrealized
Losses		      Fair
Value		      Unrealized
Losses		      Fair
Value		      Unrealized
Losses		  
     (in thousands)  

Fixed maturities:

                  

U.S. Government and federal agency

    $ —         $ —         $ —         $ —         $ —         $ —     

U.S. State and local government agency

      —           —           —           —           —           —     

Corporate debt securities

      4,007         351         4,459         440         8,466         791   

Other debt securities

      —           —           —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturities

      4,007         351         4,459         440         8,466         791   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Mutual funds - debt securities

      19,691         1,109         31,916         1,472         51,607         2,581   

Mutual funds - equity securities

      32,631         970         59,010         7,890         91,641         8,860   

Equity securities

      20,349         1,941         5,775         1,190         26,124         3,131   

Other invested assets

      —           —           —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 76,678       $ 4,371       $ 101,160       $ 10,992       $ 177,838       $ 15,363   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Reconciliation of Trust Activities 

A reconciliation of the Company’s merchandise trust activities for the six months ended June 30, 2012 is presented below:

 

Fair
Value @
12/31/2011

      Contributions      Distributions     Interest/
Dividends		      Capital
Gain
Distributions		      Realized
Gain/
Loss		      Taxes     Fees     Unrealized
Change in
Fair Value		      Fair
Value  @
6/30/2012		  
(in thousands)  
$ 344,515         26,702         (36,545 )      8,426         105         5,622         (3,309 )      (1,175 )      1,543       $ 345,884   
Cost and Market Value Associated with Assets Held in Trusts 

The cost and market value associated with the assets held in perpetual care trusts at June 30, 2012 and December 31, 2011 were as follows:

 

As of June 30, 2012

    Cost      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		     Fair
Value		  
     (in thousands)  

Short-term investment

    $ 15,831       $ —         $ —        $ 15,831   

Fixed maturities:

           

U.S. Government and federal agency

      408         104         —          512   

U.S. State and local government agency

      66         81         —          147   

Corporate debt securities

      23,378         443         (640 )      23,181   

Other debt securities

      371         —           —          371   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total fixed maturities

      24,223         628         (640 )      24,211   
  

 

 

     

 

 

     

 

 

    

 

 

  

Mutual funds - debt securities

      104,118         1,451         (360 )      105,209   

Mutual funds - equity securities

      92,254         3,485         (2,675 )      93,064   

Equity Securities

      23,141         5,300         (313 )      28,128   

Other invested assets

      —           —           —          —     
  

 

 

     

 

 

     

 

 

    

 

 

  

Total managed investments

    $ 259,567       $ 10,864       $ (3,988 )    $ 266,443   
  

 

 

     

 

 

     

 

 

    

 

 

  

Assets acquired via acquisition

      2,780         —           —          2,780   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total

    $ 262,347       $ 10,864       $ (3,988 )    $ 269,223   
  

 

 

     

 

 

     

 

 

    

 

 

  

 

As of December 31, 2011

    Cost      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		     Fair
Value		  
     (in thousands)  

Short-term investment

    $ 22,607       $ —         $ —        $ 22,607   

Fixed maturities:

           

U.S. Government and federal agency

      408         105         —          513   

U.S. State and local government agency

      66         81         —          147   

Corporate debt securities

      23,359         229         (1,434 )      22,154   

Other debt securities

      371         —           —          371   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total fixed maturities

      24,204         415         (1,434 )      23,185   
  

 

 

     

 

 

     

 

 

    

 

 

  

Mutual funds - debt securities

      61,700         185         (1,079 )      60,806   

Mutual funds - equity securities

      104,824         4,295         (9,621 )      99,498   

Equity Securities

      39,199         9,326         (112 )      48,413   

Other invested assets

      327         156         (313 )      170   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total

    $ 252,861       $ 14,377       $ (12,559 )    $ 254,679   
  

 

 

     

 

 

     

 

 

    

 

 

  
Contractual Maturities of Debt Securities Held in Trusts 

The contractual maturities of debt securities as of June 30, 2012 are as follows:

 

As of June 30, 2012

    Less than
1 year		      1 year through
5 years		      6 years through
10 years		      More than
10 years		  
     (in thousands)  

U.S. Government and federal agency

    $ —         $ 512       $ —         $ —     

U.S. State and local government agency

      147         —           —           —     

Corporate debt securities

      51         17,789         4,928         413   

Other debt securities

      371         —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturities

    $ 569       $ 18,301       $ 4,928       $ 413   
  

 

 

     

 

 

     

 

 

     

 

 

  
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 fixed maturities and equity securities at June 30, 2012 and December 31, 2011 held in perpetual care trusts is presented below:

 

     Less than 12 months      12 Months or more      Total  

As of June 30, 2012

    Fair
Value		      Unrealized
Losses		      Fair
Value		      Unrealized
Losses		      Fair
Value		      Unrealized
Losses		  
     (in thousands)  

Fixed maturities:

                  

U.S. Government and federal agency

    $ —         $ —         $ —         $ —         $ —         $ —     

U.S. State and local government agency

      —           —           —           —           —           —     

Corporate debt securities

      4,437         155         7,803         485         12,240         640   

Other debt securities

      —           —           —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturities

      4,437         155         7,803         485         12,240         640   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Mutual funds - debt securities

      328         18         1,074         342         1,402         360   

Mutual funds - equity securities

      4,178         200         7,704         2,475         11,882         2,675   

Equity securities

      4,298         313         —           —           4,298         313   

Other invested assets

      —           —           —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 13,241       $ 686       $ 16,581       $ 3,302       $ 29,822       $ 3,988   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

     Less than 12 months      12 Months or more      Total  

As of December 31, 2011

    Fair
Value		      Unrealized
Losses		      Fair
Value		      Unrealized
Losses		      Fair
Value		      Unrealized
Losses		  
     (in thousands)  

Fixed maturities:

                  

U.S. Government and federal agency

    $ —         $ —         $ —         $ —         $ —         $ —     

U.S. State and local government agency

      —           —           —           —           —           —     

Corporate debt securities

      7,967         727         8,471         707         16,438         1,434   

Other debt securities

      —           —           —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturities

      7,967         727         8,471         707         16,438         1,434   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Mutual funds - debt securities

      37,956         772         1,675         307         39,631         1,079   

Mutual funds - equity securities

      21,483         3,023         44,416         6,598         65,899         9,621   

Equity securities

      2,978         106         351         6         3,329         112   

Other invested assets

      170         313         —           —           170         313   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 70,554       $ 4,941       $ 54,913       $ 7,618       $ 125,467       $ 12,559   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Reconciliation of Trust Activities 

A reconciliation of the Company’s perpetual care trust activities for the six months ended June 30, 2012 is presented below:

 

Fair
Value @
12/31/2011

      Contributions      Distributions     Interest/
Dividends		      Capital
Gain
Distributions		      Realized
Gain/
Loss		      Taxes     Fees     Unrealized
Change in
Fair Value		      Fair
Value  @
6/30/2012		  
(in thousands)  
$ 254,679         8,749         (7,414 )      8,292         13         1,150         (413 )      (891 )      5,058       $ 269,223   
GOODWILL AND INTANGIBLE ASSETS (Tables)
Goodwill by Reportable Segment 

A rollforward of goodwill by reportable segment is as follows:

 

     Cemeteries      Funeral         
     Southeast      Northeast      West      Homes      Total  
     (in thousands)  

Balance as of December 31, 2011

    $ 6,054       $ —         $ 11,948       $ 14,297       $ 32,299   

Goodwill resulting from acquisitions during the six months ended June 30, 2012

      200         —           —           1,592         1,792   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Balance as of June 30, 2012

    $ 6,254       $ —         $ 11,948       $ 15,889       $ 34,091   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Major Classes of Intangible Assets 

All of the intangible assets are subject to amortization. The major classes of intangible assets are as follows:

 

    

As of

June 30, 2012

     Net     

As of

December 31, 2011

     Net  
     Gross Carrying
Amount		      Accumulated
Amortization		     Intangible
Asset		      Gross Carrying
Amount		      Accumulated
Amortization		     Intangible
Asset		  
     (in thousands)  

Amortized Intangible Assets:

                

Underlying contract value

    $ 6,239       $ (463 )    $ 5,776       $ 8,484       $ (546 )    $ 7,938   

Non-compete agreements

      3,872         (1,898 )      1,974         3,820         (1,413 )      2,407   

Other intangible assets

      269         (73 )      196         205         (67 )      138   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total Intangible Assets

    $ 10,380       $ (2,434 )    $ 7,946       $ 12,509       $ (2,026 )    $ 10,483   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  
LONG-TERM DEBT (Tables)
Outstanding Debt

The Company had the following outstanding debt:

 

     As of  
     June 30,
2012		      December 31,
2011		  
     (in thousands)  

Insurance premium financing

    $ 818       $ 211   

Vehicle Financing

      934         1,147   

Acquisition Credit Facility, due January 2017

      —           10,750   

Revolving Credit Facility, due January 2017

      61,950         33,000   

Note Payable - Greenlawn acquisition

      1,250         1,321   

Note Payable - Nelms acquisition (net of discount)

      427         623   

Note Payable - acquisition non-competes (net of discounts)

      1,662         1,490   

10.25% senior notes, due 2017

      150,000         150,000   
  

 

 

     

 

 

  

Total

      217,041         198,542   

Less current portion

      2,035         1,487   

Less unamortized bond discount

      3,015         3,220   
  

 

 

     

 

 

  

Long-term portion

    $ 211,991       $ 193,835   
  

 

 

     

 

 

  
DEFERRED CEMETERY REVENUES, NET (Tables)
Deferred Cemetery Revenues, Net

At June 30, 2012 and December 31, 2011, deferred cemetery revenues, net, consisted of the following:

 

     As of  
     June 30,
2012		     December 31,
2011		  
     (in thousands)  

Deferred cemetery revenue

    $ 323,688      $ 306,488   

Deferred merchandise trust revenue

      59,099        50,419   

Deferred merchandise trust unrealized gains (losses)

      (6,394 )      (7,937 ) 

Deferred pre-acquisition margin

      130,289        135,243   

Deferred cost of goods sold

      (44,594 )      (42,335 ) 
  

 

 

    

 

 

  

Deferred cemetery revenues, net

    $ 462,088      $ 441,878   
  

 

 

    

 

 

  

Deferred selling and obtaining costs

    $ 71,921      $ 68,542   
COMMITMENTS AND CONTINGENCIES (Tables)
Operating Leases Future Payments

At June 30, 2012, operating leases will result in future payments in the following approximate amounts:

 

     (in thousands)  

2013

    $ 2,039   

2014

      1,359   

2015

      866   

2016

      799   

2017

      753   

Thereafter

      1,892   
  

 

 

  

Total

    $ 7,708   
  

 

 

  
PARTNERS' CAPITAL (Tables)
Compensation Expense Recognized Related to Unit Appreciation Rights and Restricted Phantom Unit Awards

Compensation expense recognized related to unit appreciation rights and restricted phantom unit awards for the three and six months ended June 30, 2012 and 2011 are summarized in the table below:

 

     Three months ended
June 30,		      Six months ended
June 30,		  
     2012      2011      2012      2011  
     (in thousands)      (in thousands)  

Unit appreciation rights

    $ 129       $ 119       $ 248       $ 239   

Restricted phantom units

      81         72         161         142   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total unit-based compensation expense

    $ 210       $ 191       $ 409       $ 381   
  

 

 

     

 

 

     

 

 

     

 

 

  
ACQUISITIONS (Tables)
Fair Values of Net Assets Acquired 

The table below reflects the Company’s final assessment of the fair value of net assets acquired, the purchase price and the resulting goodwill from these acquisitions. For a detailed breakout of the purchase price for these acquisitions on an individual basis, see our 2011 Form 10-K.

 

     Final
Assessment		  

Assets:

   

Accounts receivable

    $ 191   

Cemetery property

      2,590   

Merchandise trusts, restricted, at fair value

      3,507   

Perpetual care trusts, restricted, at fair value

      1,534   

Property and equipment

      2,144   

Other assets

      100   
  

 

 

  

Total assets

      10,066   
  

 

 

  

Liabilities:

   

Deferred margin

      2,097   

Merchandise liabilities

      2,382   

Perpetual care trust corpus

      1,534   

Deferred tax liability

      525   
  

 

 

  

Total liabilities

      6,538   
  

 

 

  

Fair value of net assets acquired

      3,528   
  

 

 

  

Consideration paid

      3,850   
  

 

 

  

Goodwill from purchase

    $ 322   
  

 

 

  
Fair Values of Net Assets Acquired 

These amounts may be retrospectively adjusted as additional information is received.

 

     Preliminary
Assessment		  
     (in thousands)  

Net Assets Acquired:

   

Accounts receivable

    $ 66   

Cemetery property

      3,001   

Property and equipment

      102   
  

 

 

  

Total net assets acquired

      3,169   
  

 

 

  

Assets and Liabilities divested:

   

Note payable to Kingwood

      519   

Intangible asset representing underlying contract value

      (2,236 ) 
  

 

 

  

Fair value of net assets acquired and divested

      1,452   
  

 

 

  

Consideration paid

      1,652   
  

 

 

  

Goodwill from purchase

    $ 200   
  

 

 

  
Fair Values of Net Assets Acquired 

The table below reflects the Company’s preliminary assessment of the fair value of net assets acquired, the purchase price and the gain on bargain purchase. These amounts may be retrospectively adjusted as additional information is received.

 

     Preliminary
Assessment		  
     (in thousands)  

Assets:

   

Accounts receivable

    $ 72   

Cemetery property

      842   

Property and equipment

      518   

Perpetual care trusts, restricted, at fair value

      2,780   

Non-compete agreements

      12   
  

 

 

  

Total assets

      4,224   
  

 

 

  

Liabilities:

   

Perpetual care trust corpus

      2,780   

Other liabilities

      24   

Deferred tax liability

      374   
  

 

 

  

Total liabilities

      3,178   
  

 

 

  

Fair value of net assets acquired

      1,046   
  

 

 

  

Consideration paid

      924   
  

 

 

  

Gain on bargain purchase

    $ 122   
  

 

 

  

The table below reflects the Company’s preliminary assessment of the fair value of net assets acquired, the purchase price and the resulting goodwill recorded in our Funeral Homes operating segment. These amounts may be retrospectively adjusted as additional information is received.

 

     Preliminary
Assessment		  
     (in thousands)  

Assets:

   

Property and equipment

    $ 48   

Merchandise trusts, restricted, at fair value

      105   

Underlying lease value

      64   

Non-compete agreements

      40   
  

 

 

  

Total assets

      257   
  

 

 

  

Liabilities:

   

Merchandise liabilities

      105   
  

 

 

  

Total liabilities

      105   
  

 

 

  

Fair value of net assets acquired

      152   
  

 

 

  

Consideration paid - cash

      850   

Consideration paid - units

      350   

Fair value of debt assumed for non-compete agreements

      544   
  

 

 

  

Total consideration paid

      1,744   
  
  

 

 

  

Goodwill from purchase

    $ 1,592   
  

 

 

  
SEGMENT INFORMATION (Tables)
Segment Information

Segment information as of and for the three and six months ended June 30, 2012 and 2011 is as follows:

As of and for the three months ended June 30, 2012:

 

     Cemeteries      Funeral                     
     Southeast      Northeast      West      Homes      Corporate     Adjustment     Total  
     (in thousands)  

Revenues

                   

Sales

    $ 23,812       $ 9,545       $ 10,292       $ —         $ —        $ (9,535 )    $ 34,114   

Service and other

      9,255         7,138         7,373         —           —          (4,227 )      19,539   

Funeral home

      —           —           —           8,189         —          (334 )      7,855   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total revenues

      33,067         16,683         17,665         8,189         —          (14,096 )      61,508   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Costs and expenses

                   

Cost of sales

      4,972         2,028         1,739         —           49        (1,552 )      7,236   

Cemetery

      6,746         3,814         4,215         —           —          —          14,775   

Selling

      7,691         3,322         3,395         —           370        (1,655 )      13,123   

General and administrative

      3,813         1,487         1,883         —           12        —          7,195   

Corporate overhead

      —           —           —           —           7,756        —          7,756   

Depreciation and amortization

      510         215         547         518         440        —          2,230   

Funeral home

      —           —           —           6,688         —          (73 )      6,615   

Acquisition related costs

      —           —           —           —           782        —          782   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total costs and expenses

      23,732         10,866         11,779         7,206         9,409        (3,280 )      59,712   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Operating profit

    $ 9,335       $ 5,817       $ 5,886       $ 983       $ (9,409 )    $ (10,816 )    $ 1,796   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total assets

    $ 491,103       $ 291,245       $ 384,949       $ 79,938       $ 26,195      $ —        $ 1,273,430   

Amortization of cemetery property

    $ 1,022       $ 853       $ 275       $ —         $ —        $ (21 )    $ 2,129   

Long lived asset additions

    $ 802       $ 825       $ 2,630       $ 401       $ 194      $ —        $ 4,852   

Goodwill

    $ 6,254       $ —         $ 11,948       $ 15,889       $ —        $ —        $ 34,091   

 

As of and for the six months ended June 30, 2012:

 

     Cemeteries      Funeral                     
     Southeast      Northeast      West      Homes      Corporate     Adjustment     Total  
     (in thousands)  

Revenues

                   

Sales

    $ 44,692       $ 18,003       $ 20,324       $ —         $ —        $ (17,882 )    $ 65,137   

Service and other

      18,783         13,713         14,894         —           —          (8,224 )      39,166   

Funeral home

      —           —           —           17,462         —          (670 )      16,792   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total revenues

      63,475         31,716         35,218         17,462         —          (26,776 )      121,095   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Costs and expenses

                   

Cost of sales

      9,263         3,701         3,403         —           52        (2,763 )      13,656   

Cemetery

      12,451         6,879         8,237         —           —          —          27,567   

Selling

      14,716         6,458         6,607         —           831        (3,702 )      24,910   

General and administrative

      7,436         3,013         3,923         —           16        —          14,388   

Corporate overhead

      —           —           —           —           14,359        —          14,359   

Depreciation and amortization

      1,046         440         1,114         1,138         822        —          4,560   

Funeral home

      —           —           —           13,487         —          (116 )      13,371   

Acquisition related costs

      —           —           —           —           1,113        —          1,113   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total costs and expenses

      44,912         20,491         23,284         14,625         17,193        (6,581 )      113,924   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Operating profit

    $ 18,563       $ 11,225       $ 11,934       $ 2,837       $ (17,193 )    $ (20,195 )    $ 7,171   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total assets

    $ 491,103       $ 291,245       $ 384,949       $ 79,938       $ 26,195      $ —        $ 1,273,430   

Amortization of cemetery property

    $ 2,001       $ 1,413       $ 569       $ —         $ —        $ (3 )    $ 3,980   

Long lived asset additions

    $ 4,765       $ 1,374       $ 3,100       $ 460       $ 606      $ —        $ 10,305   

Goodwill

    $ 6,254       $ —         $ 11,948       $ 15,889       $ —        $ —        $ 34,091   

As of and for the three months ended June 30, 2011:

 

     Cemeteries      Funeral                     
     Southeast      Northeast      West      Homes      Corporate     Adjustment     Total  
     (in thousands)  

Revenues

                   

Sales

    $ 21,223       $ 8,565       $ 12,931       $ —         $ 1      $ (7,926 )    $ 34,794   

Service and other

      7,820         5,618         6,256         —           —          (1,744 )      17,950   

Funeral home

      —           —           —           7,563         —          (200 )      7,363   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total revenues

      29,043         14,183         19,187         7,563         1        (9,870 )      60,107   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Costs and expenses

                   

Cost of sales

      4,354         1,715         2,062         —           —          (915 )      7,216   

Cemetery

      6,076         3,899         5,487         —           —          —          15,462   

Selling

      7,189         2,952         3,784         —           97        (1,835 )      12,187   

General and administrative

      3,292         1,493         2,246         —           —          —          7,031   

Corporate overhead

      —           —           —           —           5,986        —          5,986   

Depreciation and amortization

      427         230         733         169         483        —          2,042   

Funeral home

      —           —           —           5,698         —          —          5,698   

Acquisition related costs

      —           —           —           —           1,025        —          1,025   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total costs and expenses

      21,338         10,289         14,312         5,867         7,591        (2,750 )      56,647   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Operating profit

    $ 7,705       $ 3,894       $ 4,875       $ 1,696       $ (7,590 )    $ (7,120 )    $ 3,460   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total assets

    $ 435,391       $ 287,396       $ 382,551       $ 51,521       $ 32,089      $ —        $ 1,188,948   

Amortization of cemetery property

    $ 1,000       $ 591       $ 215       $ —         $ —        $ (231 )    $ 1,575   

Long lived asset additions

    $ 932       $ 488       $ 1,946       $ 2,092       $ 192      $ —        $ 5,650   

Goodwill

    $ 629       $ —         $ 11,949       $ 5,897       $ —        $ —        $ 18,475   

 

As of and for the six months ended June 30, 2011:

 

     Cemeteries      Funeral                     
     Southeast      Northeast      West      Homes      Corporate     Adjustment     Total  
     (in thousands)  

Revenues

                   

Sales

    $ 39,967       $ 16,533       $ 23,022       $ —         $ 5      $ (20,203 )    $ 59,324   

Service and other

      16,179         11,579         15,071         —           —          (7,510 )      35,319   

Funeral home

      —           —           —           15,044         —          (349 )      14,695   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total revenues

      56,146         28,112         38,093         15,044         5        (28,062 )      109,338   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Costs and expenses

                   

Cost of sales

      8,071         3,316         3,616         —           —          (2,794 )      12,209   

Cemetery

      11,027         6,969         9,552         —           —          —          27,548   

Selling

      13,605         5,770         6,716         —           678        (5,038 )      21,731   

General and administrative

      6,269         3,020         4,172         —           (3 )      —          13,458   

Corporate overhead

      —           —           —           —           11,944        —          11,944   

Depreciation and amortization

      758         444         1,241         567         1,478        —          4,488   

Funeral home

      —           —           —           11,007         —          —          11,007   

Acquisition related costs

      —           —           —           —           1,958        —          1,958   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total costs and expenses

      39,730         19,519         25,297         11,574         16,055        (7,832 )      104,343   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Operating profit

    $ 16,416       $ 8,593       $ 12,796       $ 3,470       $ (16,050 )    $ (20,230 )    $ 4,995   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total assets

    $ 435,391       $ 287,396       $ 382,551       $ 51,521       $ 32,089      $ —        $ 1,188,948   

Amortization of cemetery property

    $ 1,753       $ 1,140       $ 394       $ —         $ —        $ (329 )    $ 2,958   

Long lived asset additions

    $ 3,871       $ 752       $ 3,277       $ 2,040       $ 304      $ —        $ 10,244   

Goodwill

    $ 629       $ —         $ 11,949       $ 5,897       $ —        $ —        $ 18,475   
FAIR VALUE MEASUREMENTS (Tables)
Assets and Liabilities Measured at Fair Value

The following table allocates the Company’s assets measured at fair value as of June 30, 2012 and December 31, 2011.

 

As of June 30, 2012

Merchandise Trust

 

Description

    Level 1      Level 2      Total  
     (in thousands)  

Assets

         

Short-term investments

    $ 30,910       $ —         $ 30,910   

Fixed maturities:

         

U.S. government and federal agency

      —           —           —     

U.S. state and local government agency

      —           23         23   

Corporate debt securities

      —           7,923         7,923   

Other debt securities

      —           —           —     
  

 

 

     

 

 

     

 

 

  

Total fixed maturity investments

      —           7,946         7,946   
  

 

 

     

 

 

     

 

 

  

Mutual funds - debt securities

      90,404         —           90,404   

Mutual funds - equity securities - real estate sector

      35,451         —           35,451   

Mutual funds - equity securities - energy sector

      5,361         —           5,361   

Mutual funds - equity securities - MLP’s

      26,866         —           26,866   

Mutual funds - equity securities - other

      69,242         —           69,242   

Equity securities

         

Preferred REIT’s

      1,763         —           1,763   

Master limited partnerships

      39,719         —           39,719   

Global equity securities

      22,424         —           22,424   

Other invested assets

      —           8,499         8,499   
  

 

 

     

 

 

     

 

 

  

Total

    $ 322,140       $ 16,445       $ 338,585   
  

 

 

     

 

 

     

 

 

  

Perpetual Care Trust

 

Description

    Level 1      Level 2      Total  
     (in thousands)  

Assets

         

Short-term investments

    $ 15,831       $ —         $ 15,831   

Fixed maturities:

         

U.S. government and federal agency

      512         —           512   

U.S. state and local government agency

      —           147         147   

Corporate debt securities

      —           23,181         23,181   

Other debt securities

      —           371         371   
  

 

 

     

 

 

     

 

 

  

Total fixed maturity investments

      512         23,699         24,211   
  

 

 

     

 

 

     

 

 

  

Mutual funds - debt securities

      105,209         —           105,209   

Mutual funds - equity securities - real estate sector

      38,085         —           38,085   

Mutual funds - equity securities - energy sector

      11,956         —           11,956   

Mutual funds - equity securities - MLP’s

      29,964         —           29,964   

Mutual funds - equity securities - other

      13,059         —           13,059   

Equity securities

         

Preferred REIT’s

      778         —           778   

Master limited partnerships

      26,649         —           26,649   

Global equity securities

      701         —           701   

Other invested assets

      —           —           —     
  

 

 

     

 

 

     

 

 

  

Total

    $ 242,744       $ 23,699       $ 266,443   
  

 

 

     

 

 

     

 

 

  

 

As of December 31, 2011

Merchandise Trust

 

Description

    Level 1      Level 2      Total  
     (in thousands)  

Assets

         

Short-term investments

    $ 38,312       $ —         $ 38,312   

Fixed maturities:

         

U.S. government and federal agency

      —           —           —     

U.S. state and local government agency

      —           23         23   

Corporate debt securities

      —           9,765         9,765   

Other debt securities

      —           1,100         1,100   
  

 

 

     

 

 

     

 

 

  

Total fixed maturity investments

      —           10,888         10,888   
  

 

 

     

 

 

     

 

 

  

Mutual funds - debt securities

      67,421         —           67,421   

Mutual funds - equity securities - real estate sector

      22,847         —           22,847   

Mutual funds - equity securities - energy sector

      28,057         —           28,057   

Mutual funds - equity securities - MLP’s

      20,308         —           20,308   

Mutual funds - equity securities - other

      70,076         —           70,076   

Equity securities

         

Preferred REIT’s

      9,001         —           9,001   

Master limited partnerships

      41,469         —           41,469   

Global equity securities

      21,882         —           21,882   

Other invested assets

      —           7,360         7,360   
  

 

 

     

 

 

     

 

 

  

Total

    $ 319,373       $ 18,248       $ 337,621   
  

 

 

     

 

 

     

 

 

  

Perpetual Care Trust

 

Description

    Level 1      Level 2      Total  
     (in thousands)  

Assets

         

Short-term investments

    $ 22,607       $ —         $ 22,607   

Fixed maturities:

         

U.S. government and federal agency

      513         —           513   

U.S. state and local government agency

      —           147         147   

Corporate debt securities

      —           22,154         22,154   

Other debt securities

      —           371         371   
  

 

 

     

 

 

     

 

 

  

Total fixed maturity investments

      513         22,672         23,185   
  

 

 

     

 

 

     

 

 

  

Mutual funds - debt securities

      60,806         —           60,806   

Mutual funds - equity securities - real estate sector

      24,580         —           24,580   

Mutual funds - equity securities - energy sector

      20,069         —           20,069   

Mutual funds - equity securities - MLP’s

      13,515         —           13,515   

Mutual funds - equity securities - other

      41,334         —           41,334   

Equity securities

         

Preferred REIT’s

      19,720         —           19,720   

Master limited partnerships

      27,998         —           27,998   

Global equity securities

      695         —           695   

Other invested assets

      —           170         170   
  

 

 

     

 

 

     

 

 

  

Total

    $ 231,837       $ 22,842       $ 254,679   
  

 

 

     

 

 

     

 

 

  
Nature of Operations Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail)
Jun. 30, 2012
State
Property
US and Puerto Rico |
Cemetery
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
272 
Number of states
26 
US and Puerto Rico |
Funeral Home
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
71 
Number of states
18 
Wholly Owned Properties |
US and Puerto Rico |
Cemetery
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
254 
Managed Properties |
Cemetery property
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
18 
Managed Properties |
Consolidated Properties |
Cemetery property
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
16 
Managed Properties |
Unconsolidated Properties |
Cemetery property
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
2 
Long Term Accounts Receivable Net (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Customer receivables
$ 161,447 
$ 151,540 
Unearned finance income
(18,424)
(16,727)
Allowance for contract cancellations
(20,017)
(17,582)
Accounts Receivable, Net, Total
123,006 
117,231 
Less: current portion, net of allowance
51,908 
48,837 
Long-term portion, net of allowance
$ 71,098 
$ 68,394 
Activity in Allowance for Contract Cancellations (Detail) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Dec. 31, 2011
Jun. 30, 2012
Contract Cancellations
Jun. 30, 2011
Contract Cancellations
Valuation and Qualifying Accounts Disclosure [Line Items]
 
 
 
 
Balance - Beginning of period
$ 20,017 
$ 17,582 
$ 17,582 
$ 15,832 
Provision for cancellations
 
 
9,791 
9,211 
Charge-offs - net
 
 
(7,356)
(6,853)
Balance - End of period
$ 20,017 
$ 17,582 
$ 20,017 
$ 18,190 
Cemetery Property (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
$ 302,986 
$ 298,938 
Developed land
 
 
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
68,770 
64,266 
Undeveloped Land
 
 
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
166,227 
164,723 
Mausoleum Crypts and Lawn Crypts
 
 
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
$ 67,989 
$ 69,949 
Major Classes of Property and Equipment (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Property, Plant and Equipment [Line Items]
 
 
Building and improvements
$ 75,540 
$ 75,076 
Furniture and equipment
38,935 
36,863 
Property, Plant and Equipment, Gross, Total
114,475 
111,939 
Less: accumulated depreciation
(41,527)
(38,162)
Property and equipment - net
$ 72,948 
$ 73,777 
Property and Equipment - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Property, Plant, and Equipment Disclosure [Line Items]
 
 
 
 
Depreciation expense
$ 1.7 
$ 1.5 
$ 3.5 
$ 2.9 
Merchandise Trusts - Additional Information (Detail) (Variable Interest Entity, Primary Beneficiary, Merchandise Trusts, USD $)
6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2012
Dec. 31, 2011
Jun. 30, 2012
Other Than Temporarily Impaired Securities
Property
Jun. 30, 2011
Other Than Temporarily Impaired Securities
Property
Jun. 30, 2012
Other Than Temporarily Impaired Securities
Property
Jun. 30, 2011
Other Than Temporarily Impaired Securities
Property
Jun. 30, 2012
Termination of operating agreement
Jun. 30, 2012
West Virginia Trust Receivable
Dec. 31, 2011
West Virginia Trust Receivable
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
 
 
 
 
 
Trust assets, fair value
$ 345,884,000 
$ 344,515,000 
$ 800,000 
$ 100,000 
$ 800,000 
$ 100,000 
 
$ 7,299,000 
$ 6,894,000 
Net distributions from trusts
9,800,000 
 
 
 
 
 
5,800,000 
 
 
Purchases of securities available for sale included in trust investments
207,300,000 
 
 
 
 
 
 
 
 
Sales of securities available for sale included in trust investments
218,300,000 
 
 
 
 
 
 
 
 
Number of securities resulting impairment
 
 
6 
1 
6 
1 
 
 
 
Trust assets, cost
352,278,000 
352,452,000 
1,600,000 
200,000 
1,600,000 
200,000 
 
7,299,000 
6,894,000 
Other than temporary impairments loss
 
 
$ 800,000 
$ 100,000 
$ 800,000 
$ 100,000 
 
 
 
Cost and Market Value Associated with Assets Held in Merchandise Trusts (Detail) (Variable Interest Entity, Primary Beneficiary, Merchandise Trusts, USD $)
In Thousands, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
$ 352,278 
$ 352,452 
Gross Unrealized Gains
7,406 
7,426 
Gross Unrealized Losses
(13,800)
(15,363)
Fair Value
345,884 
344,515 
Short-term investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
30,910 
38,312 
Fair Value
30,910 
38,312 
Fixed maturities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
8,130 
11,660 
Gross Unrealized Gains
66 
19 
Gross Unrealized Losses
(250)
(791)
Fair Value
7,946 
10,888 
Fixed maturities |
U.S. State and local government agency
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
23 
23 
Fair Value
23 
23 
Fixed maturities |
Corporate debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
8,107 
10,537 
Gross Unrealized Gains
66 
19 
Gross Unrealized Losses
(250)
(791)
Fair Value
7,923 
9,765 
Fixed maturities |
Other debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
 
1,100 
Fair Value
 
1,100 
Mutual funds - debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
90,331 
68,291 
Gross Unrealized Gains
2,066 
1,711 
Gross Unrealized Losses
(1,993)
(2,581)
Fair Value
90,404 
67,421 
Mutual funds - equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
139,826 
148,209 
Gross Unrealized Gains
3,818 
1,939 
Gross Unrealized Losses
(6,724)
(8,860)
Fair Value
136,920 
141,288 
Equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
67,369 
71,760 
Gross Unrealized Gains
1,370 
3,723 
Gross Unrealized Losses
(4,833)
(3,131)
Fair Value
63,906 
72,352 
Other invested assets
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
8,413 
7,326 
Gross Unrealized Gains
86 
34 
Fair Value
8,499 
7,360 
Total managed investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
344,979 
345,558 
Gross Unrealized Gains
7,406 
7,426 
Gross Unrealized Losses
(13,800)
(15,363)
Fair Value
338,585 
337,621 
West Virginia Trust Receivable
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
7,299 
6,894 
Fair Value
$ 7,299 
$ 6,894 
Contractual Maturities of Debt Securities Held in Merchandise Trusts (Detail) (Variable Interest Entity, Primary Beneficiary, Merchandise Trusts, Fixed maturities, USD $)
In Thousands, unless otherwise specified
Jun. 30, 2012
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
$ 23 
1 year through 5 years
6,010 
6 years through 10 years
1,785 
More than 10 years
128 
U.S. State and local government agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
23 
Corporate debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
1 year through 5 years
6,010 
6 years through 10 years
1,785 
More than 10 years
$ 128 
Aging of Unrealized Losses on Investments in Fixed Maturities and Equity Securities Held in Merchandise Trusts (Detail) (Variable Interest Entity, Primary Beneficiary, Merchandise Trusts, USD $)
In Thousands, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
$ 75,388 
$ 76,678 
Less than 12 months Unrealized Losses
3,017 
4,371 
12 Months or more Fair Value
102,449 
101,160 
12 Months or more Unrealized Losses
10,783 
10,992 
Total Fair Value
177,837 
177,838 
Total Unrealized Losses
13,800 
15,363 
Fixed maturities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
2,253 
4,007 
Less than 12 months Unrealized Losses
61 
351 
12 Months or more Fair Value
2,747 
4,459 
12 Months or more Unrealized Losses
189 
440 
Total Fair Value
5,000 
8,466 
Total Unrealized Losses
250 
791 
Fixed maturities |
Corporate debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
2,253 
4,007 
Less than 12 months Unrealized Losses
61 
351 
12 Months or more Fair Value
2,747 
4,459 
12 Months or more Unrealized Losses
189 
440 
Total Fair Value
5,000 
8,466 
Total Unrealized Losses
250 
791 
Mutual funds - debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
40,167 
19,691 
Less than 12 months Unrealized Losses
370 
1,109 
12 Months or more Fair Value
27,859 
31,916 
12 Months or more Unrealized Losses
1,623 
1,472 
Total Fair Value
68,026 
51,607 
Total Unrealized Losses
1,993 
2,581 
Mutual funds - equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
6,961 
32,631 
Less than 12 months Unrealized Losses
569 
970 
12 Months or more Fair Value
58,311 
59,010 
12 Months or more Unrealized Losses
6,155 
7,890 
Total Fair Value
65,272 
91,641 
Total Unrealized Losses
6,724 
8,860 
Equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
26,007 
20,349 
Less than 12 months Unrealized Losses
2,017 
1,941 
12 Months or more Fair Value
13,532 
5,775 
12 Months or more Unrealized Losses
2,816 
1,190 
Total Fair Value
39,539 
26,124 
Total Unrealized Losses
$ 4,833 
$ 3,131 
Reconciliation of Merchandise Trust Activities (Detail) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Dec. 31, 2011
Jun. 30, 2012
Variable Interest Entity, Primary Beneficiary
Merchandise Trusts
Schedule of Available-for-sale Securities [Line Items]
 
 
 
Fair Value
$ 345,884 
$ 344,515 
$ 344,515 
Contributions
 
 
26,702 
Distributions
 
 
(36,545)
Interest/ Dividends
 
 
8,426 
Capital Gain Distributions
 
 
105 
Realized Gain/ Loss
 
 
5,622 
Taxes
 
 
(3,309)
Fees
 
 
(1,175)
Unrealized Change in Fair Value
 
 
1,543 
Fair Value
$ 345,884 
$ 344,515 
$ 345,884 
Cost and Market Value Associated with Assets Held in Perpetual Care Trusts (Detail) (Variable Interest Entity, Primary Beneficiary, Perpetual care trusts, USD $)
In Thousands, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
$ 262,347 
$ 252,861 
Gross Unrealized Gains
10,864 
14,377 
Gross Unrealized Losses
(3,988)
(12,559)
Fair Value
269,223 
254,679 
Short-term investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
15,831 
22,607 
Fair Value
15,831 
22,607 
Fixed maturities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
24,223 
24,204 
Gross Unrealized Gains
628 
415 
Gross Unrealized Losses
(640)
(1,434)
Fair Value
24,211 
23,185 
Fixed maturities |
U.S. Government and federal agency
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
408 
408 
Gross Unrealized Gains
104 
105 
Fair Value
512 
513 
Fixed maturities |
U.S. State and local government agency
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
66 
66 
Gross Unrealized Gains
81 
81 
Fair Value
147 
147 
Fixed maturities |
Corporate debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
23,378 
23,359 
Gross Unrealized Gains
443 
229 
Gross Unrealized Losses
(640)
(1,434)
Fair Value
23,181 
22,154 
Fixed maturities |
Other debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
371 
371 
Fair Value
371 
371 
Mutual funds - debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
104,118 
61,700 
Gross Unrealized Gains
1,451 
185 
Gross Unrealized Losses
(360)
(1,079)
Fair Value
105,209 
60,806 
Mutual funds - equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
92,254 
104,824 
Gross Unrealized Gains
3,485 
4,295 
Gross Unrealized Losses
(2,675)
(9,621)
Fair Value
93,064 
99,498 
Equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
23,141 
39,199 
Gross Unrealized Gains
5,300 
9,326 
Gross Unrealized Losses
(313)
(112)
Fair Value
28,128 
48,413 
Other invested assets
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
 
327 
Gross Unrealized Gains
 
156 
Gross Unrealized Losses
 
(313)
Fair Value
 
170 
Total managed investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
259,567 
 
Gross Unrealized Gains
10,864 
 
Gross Unrealized Losses
(3,988)
 
Fair Value
266,443 
 
Assets acquired via acquisition
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
2,780 
 
Fair Value
$ 2,780 
 
Contractual Maturities of Debt Securities Held in Perpetual Care Trusts (Detail) (Variable Interest Entity, Primary Beneficiary, Perpetual care trusts, Fixed maturities, USD $)
In Thousands, unless otherwise specified
Jun. 30, 2012
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
$ 569 
1 year through 5 years
18,301 
6 years through 10 years
4,928 
More than 10 years
413 
U.S. Government and federal agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
1 year through 5 years
512 
U.S. State and local government agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
147 
Corporate debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
51 
1 year through 5 years
17,789 
6 years through 10 years
4,928 
More than 10 years
413 
Other debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
$ 371 
Aging of Unrealized Losses on Investments in Fixed Maturities and Equity Securities Held in Perpetual Care Trusts (Detail) (Variable Interest Entity, Primary Beneficiary, Perpetual care trusts, USD $)
In Thousands, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
$ 13,241 
$ 70,554 
Less than 12 months Unrealized Losses
686 
4,941 
12 Months or more Fair Value
16,581 
54,913 
12 Months or more Unrealized Losses
3,302 
7,618 
Total Fair Value
29,822 
125,467 
Total Unrealized Losses
3,988 
12,559 
Fixed maturities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
4,437 
7,967 
Less than 12 months Unrealized Losses
155 
727 
12 Months or more Fair Value
7,803 
8,471 
12 Months or more Unrealized Losses
485 
707 
Total Fair Value
12,240 
16,438 
Total Unrealized Losses
640 
1,434 
Fixed maturities |
Corporate debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
4,437 
7,967 
Less than 12 months Unrealized Losses
155 
727 
12 Months or more Fair Value
7,803 
8,471 
12 Months or more Unrealized Losses
485 
707 
Total Fair Value
12,240 
16,438 
Total Unrealized Losses
640 
1,434 
Mutual funds - debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
328 
37,956 
Less than 12 months Unrealized Losses
18 
772 
12 Months or more Fair Value
1,074 
1,675 
12 Months or more Unrealized Losses
342 
307 
Total Fair Value
1,402 
39,631 
Total Unrealized Losses
360 
1,079 
Mutual funds - equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
4,178 
21,483 
Less than 12 months Unrealized Losses
200 
3,023 
12 Months or more Fair Value
7,704 
44,416 
12 Months or more Unrealized Losses
2,475 
6,598 
Total Fair Value
11,882 
65,899 
Total Unrealized Losses
2,675 
9,621 
Equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
4,298 
2,978 
Less than 12 months Unrealized Losses
313 
106 
12 Months or more Fair Value
 
351 
12 Months or more Unrealized Losses
 
6 
Total Fair Value
4,298 
3,329 
Total Unrealized Losses
313 
112 
Other invested assets
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
 
170 
Less than 12 months Unrealized Losses
 
313 
Total Fair Value
 
170 
Total Unrealized Losses
 
$ 313 
Reconciliation of Perpetual Care Trust Activities (Detail) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Dec. 31, 2011
Jun. 30, 2012
Variable Interest Entity, Primary Beneficiary
Perpetual care trusts
Schedule of Available-for-sale Securities [Line Items]
 
 
 
Fair Value
$ 269,223 
$ 254,679 
$ 254,679 
Contributions
 
 
8,749 
Distributions
 
 
(7,414)
Interest/ Dividends
 
 
8,292 
Capital Gain Distributions
 
 
13 
Realized Gain/ Loss
 
 
1,150 
Taxes
 
 
(413)
Fees
 
 
(891)
Unrealized Change in Fair Value
 
 
5,058 
Fair Value
$ 269,223 
$ 254,679 
$ 269,223 
Perpetual Care Trusts - Additional Information (Detail) (Variable Interest Entity, Primary Beneficiary, Perpetual care trusts, USD $)
In Millions, unless otherwise specified
6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Other Than Temporarily Impaired Securities
Investment
Jun. 30, 2011
Other Than Temporarily Impaired Securities
Investment
Jun. 30, 2012
Nelms
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
Net distributions from trusts
$ 1.3 
 
 
$ 2.8 
Purchases of securities available for sale included in trust investments
220.4 
 
 
 
Sales of securities available for sale included in trust investments
221.7 
 
 
 
Number of securities resulting impairment
 
1 
1 
 
Trust assets, cost
 
$ 0.1 
$ 0.1 
 
Goodwill by Reportable Segment (Detail) (USD $)
In Thousands, unless otherwise specified
6 Months Ended 6 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Cemetery Operations South East
Jun. 30, 2011
Cemetery Operations South East
Jun. 30, 2012
Cemetery Operations West
Dec. 31, 2011
Cemetery Operations West
Jun. 30, 2011
Cemetery Operations West
Jun. 30, 2012
Funeral Home
Jun. 30, 2011
Funeral Home
Goodwill [Line Items]
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2011
$ 32,299 
$ 18,475 
$ 6,054 
$ 629 
$ 11,948 
$ 11,948 
$ 11,949 
$ 14,297 
$ 5,897 
Goodwill resulting from acquisitions during the six months ended June 30, 2012
1,792 
 
200 
 
 
 
 
1,592 
 
Balance as of June 30, 2012
$ 34,091 
$ 18,475 
$ 6,254 
$ 629 
$ 11,948 
$ 11,948 
$ 11,949 
$ 15,889 
$ 5,897 
Goodwill and Other Intangible Assets - Additional Information (Detail) (Fourth Quarter Twenty Eleven, USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Goodwill [Line Items]
 
Legal settlement receivable
$ 3.8 
Decrease to goodwill as purchase price adjustment for acquisitions
(4.1)
Merchandise Trusts
 
Goodwill [Line Items]
 
Other goodwill adjustments as a result of increase in merchandise trust asset and account receivable
$ 0.3 
Major Classes of Intangible Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
$ 10,380 
$ 12,509 
Accumulated Amortization
(2,434)
(2,026)
Net Intangible Asset
7,946 
10,483 
Underlying contract value
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
6,239 
8,484 
Accumulated Amortization
(463)
(546)
Net Intangible Asset
5,776 
7,938 
Noncompete Agreements
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
3,872 
3,820 
Accumulated Amortization
(1,898)
(1,413)
Net Intangible Asset
1,974 
2,407 
Other Intangible Assets
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
269 
205 
Accumulated Amortization
(73)
(67)
Net Intangible Asset
$ 196 
$ 138 
Outstanding Debt (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Debt Instrument [Line Items]
 
 
Long-Term Debt
$ 217,041 
$ 198,542 
Less current portion
2,035 
1,487 
Less unamortized bond discount
3,015 
3,220 
Long-term portion
211,991 
193,835 
Insurance premium financing
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
818 
211 
Vehicle financing
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
934 
1,147 
Acquisition Credit Facility, due January 2017
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
 
10,750 
Revolving Credit Facility, due January 2017
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
61,950 
33,000 
Notes Payable, Other Payables |
Greenlawn
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
1,250 
1,321 
Notes Payable, Other Payables |
Nelms
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
427 
623 
Notes Payable, Other Payables |
acquisition non-competes
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
1,662 
1,490 
10.25% Senior Notes, due 2017
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
$ 150,000 
$ 150,000 
Outstanding Debt (Parenthetical) (Detail)
6 Months Ended
Jun. 30, 2012
Dec. 31, 2011
Acquisition Credit Facility, due January 2017
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt, maturity date
2017-01 
2017-01 
Revolving Credit Facility, due January 2017
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt, maturity date
2017-01 
2017-01 
10.25% Senior Notes, due 2017
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt, interest rate
10.25% 
10.25% 
Long-Term Debt, maturity date, year
2017 
2017 
Long Term Debt - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended 6 Months Ended 6 Months Ended 1 Months Ended
Jun. 30, 2012
10.25% Senior Notes, due 2017
Dec. 31, 2011
10.25% Senior Notes, due 2017
Jun. 30, 2012
Line of Credit
Third Amended And Restated Credit Agreement
Jun. 30, 2012
Line of Credit
Third Amended And Restated Credit Agreement
Minimum
Jun. 30, 2012
Line of Credit
Third Amended And Restated Credit Agreement
Maximum
Jun. 30, 2012
Line of Credit
Third Amended And Restated Credit Agreement
Base Rate
Jan. 31, 2012
Revolving Credit Facility, due January 2017
Third Amended And Restated Credit Agreement
Jan. 19, 2012
Revolving Credit Facility, due January 2017
Third Amended And Restated Credit Agreement
Debt Disclosure [Line Items]
 
 
 
 
 
 
 
 
Long-Term Debt, principal amount
$ 150.0 
 
 
 
 
 
 
 
Long-Term Debt, interest rate
10.25% 
10.25% 
 
 
 
 
 
 
Long-Term Debt, maturity date
Dec. 01, 2017 
 
 
 
 
 
 
 
Long-Term Debt, original issue discount
4.0 
 
 
 
 
 
 
 
Credit facility, borrowing capacity
 
 
 
 
 
 
 
$ 130.0 
Credit facility, maturity date
 
 
 
 
 
 
Jan. 19, 2017 
 
Credit facility, interest rate
 
 
3.70% 
 
 
 
 
 
Credit facility, interest rate margin on base rate
 
 
 
1.25% 
2.75% 
 
 
 
Credit facility, interest rate margin on Eurodollar rate
 
 
 
2.25% 
3.75% 
 
 
 
Credit facility, margin on Federal Funds Rate to calculate interest rate reference rate
 
 
 
 
 
0.50% 
 
 
Credit facility, margin on Eurodollar Rate to calculate interest rate reference rate
 
 
 
 
 
1.00% 
 
 
Credit facility, unused commitment fee rate
 
 
0.375% 
 
0.75% 
 
 
 
Income Taxes - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Internal Revenue Service (IRS)
 
Income Taxes [Line Items]
 
Net operating loss carryover
$ 152.8 
Net operating loss carryover, expiration date
2019 
State and Local Jurisdiction
 
Income Taxes [Line Items]
 
Net operating loss carryover
$ 184.1 
Deferred Cemetery Revenues Net (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Deferred Revenue Arrangement [Line Items]
 
 
Deferred merchandise trust unrealized gains (losses)
$ (6,394)
$ (7,937)
Deferred cost of goods sold
(44,594)
(42,335)
Deferred cemetery revenues, net
462,088 
441,878 
Deferred selling and obtaining costs
71,921 
68,542 
Pre Acquisition Margin
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred cemetery revenues, net
130,289 
135,243 
Cemetery
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred cemetery revenues, net
323,688 
306,488 
Merchandise Trusts
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred cemetery revenues, net
$ 59,099 
$ 50,419 
Commitments and Contingencies - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Leases Disclosure [Line Items]
 
 
 
 
Operating lease expense
$ 0.7 
$ 0.5 
$ 1.3 
$ 1.1 
Minimum
 
 
 
 
Leases Disclosure [Line Items]
 
 
 
 
Operating lease, initial term
 
 
1 year 
 
Maximum
 
 
 
 
Leases Disclosure [Line Items]
 
 
 
 
Operating lease, initial term
 
 
10 years 
 
Operating Leases Future Payments (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2012
Schedule of Capital Lease Obligations [Line Items]
 
2013
$ 2,039 
2014
1,359 
2015
866 
2016
799 
2017
753 
Thereafter
1,892 
Total
$ 7,708 
Partners Capital - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Second Quarter Twenty Twelve Acquisition
 
 
Limited Partners' Capital Account [Line Items]
 
 
Units issued in connection with acquisition
13,720 
 
Second Quarter 2010 Acquisition
 
 
Limited Partners' Capital Account [Line Items]
 
 
Units issued in connection with acquisition
9,853 
9,853 
Unit appreciation rights
 
 
Limited Partners' Capital Account [Line Items]
 
 
Non-vested unit appreciation rights outstanding
$ 0.9 
 
Acquisitions - Additional Information (Detail) (USD $)
3 Months Ended 6 Months Ended 9 Months Ended 6 Months Ended 6 Months Ended 6 Months Ended
Jun. 30, 2012
Mar. 31, 2012
Jun. 30, 2012
Dec. 31, 2011
Sep. 30, 2010
Joint Operating Agreement
Jan. 31, 2012
First Quarter Twenty Twelve Acquisition
Jun. 30, 2012
Second Quarter Twenty Twelve Acquisition
Apr. 30, 2012
Second Quarter Twenty Twelve Acquisition
Dec. 31, 2011
Second Quarter Twenty Twelve Acquisition
Jun. 30, 2012
Second Quarter Twenty Twelve Acquisition
Noncompete Agreements
Apr. 10, 2012
Second Quarter Twenty Twelve Acquisition
Cemetery property
Property
Jun. 30, 2012
Second Quarter Twenty Twelve Acquisition
Funeral Homes Property
Property
Mar. 31, 2011
First Quarter 2011 Acquisition
Mar. 31, 2011
First Quarter 2011 Acquisition
Cemetery property
Property
Jun. 22, 2011
Second Quarter 2011 Acquisition
Jun. 30, 2012
Second Quarter 2011 Acquisition
Cemetery property
Property
Jun. 30, 2012
Second Quarter 2011 Acquisition
Funeral Homes Property
Property
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amended Operating Agreement, term
 
 
 
 
 
40 years 
 
 
 
 
 
 
 
 
 
 
 
Consideration paid
 
 
 
$ 3,850,000 
 
$ 1,652,000 
$ 924,000 
$ 900,000 
$ 850,000 
 
 
$ 850,000 
$ 1,700,000 
 
$ 2,150,000 
 
 
Number of properties acquired
 
 
 
 
 
 
 
 
 
 
1 
2 
 
3 
 
3 
4 
Term of lease agreement
 
 
 
 
 
 
 
 
 
 
 
10 years 
 
 
 
 
 
Lease renewal term
 
 
 
 
 
 
 
 
 
 
 
5 years 
 
 
 
 
 
Units issued in connection with acquisition
 
 
 
 
 
 
13,720 
 
 
 
 
 
 
 
 
 
 
Consideration paid - units
 
 
 
 
 
 
350,000 
 
350,000 
 
 
 
 
 
 
 
 
Installment payment amount
 
 
 
 
 
 
 
 
 
600,000 
 
 
 
 
 
 
 
Installment payment start date
 
 
 
 
 
 
 
 
 
Jan. 02, 2013 
 
 
 
 
 
 
 
Deferred gain
 
 
 
 
3,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
Contract termination, payment receivable
 
2,000,000 
2,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contract termination, gain recognized
$ (83,000)
 
$ 1,737,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preliminary Assessment of Fair Value of Net Assets Acquired Elimination of Debt and Other Assets and Purchase Price Recognition of Goodwill of First Quarter Twenty Twelve Acquisition (Detail) (USD $)
Dec. 31, 2011
Dec. 31, 2011
Accounts receivable
Dec. 31, 2011
Cemetery property
Dec. 31, 2011
Property and equipment
Jan. 31, 2012
First Quarter Twenty Twelve Acquisition
Jan. 31, 2012
First Quarter Twenty Twelve Acquisition
Accounts receivable
Jan. 31, 2012
First Quarter Twenty Twelve Acquisition
Cemetery property
Jan. 31, 2012
First Quarter Twenty Twelve Acquisition
Property and equipment
Jan. 31, 2012
First Quarter Twenty Twelve Acquisition
Notes Payable
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
Estimated fair value of assets acquired
 
$ 191,000 
 
 
 
$ 66,000 
 
 
 
Estimated fair value of property and equipment acquired
 
 
2,590,000 
2,144,000 
 
 
3,001,000 
102,000 
 
Total net assets acquired
10,066,000 
 
 
 
3,169,000 
 
 
 
 
Estimated fair value of liabilities assumed
 
 
 
 
 
 
 
 
519,000 
Intangible asset representing underlying contract value
 
 
 
 
(2,236,000)
 
 
 
 
Fair value of net assets acquired and divested
3,528,000 
 
 
 
1,452,000 
 
 
 
 
Consideration paid
3,850,000 
 
 
 
1,652,000 
 
 
 
 
Goodwill from purchase
$ 322,000 
 
 
 
$ 200,000 
 
 
 
 
Preliminary Assessment of Fair Value of Net Assets Acquired Elimination of Debt and Other Assets and Purchase Price Gain on Bargain Purchase of Second Quarter Twenty Twelve Acquisition (Detail) (USD $)
3 Months Ended 6 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2012
Dec. 31, 2011
Dec. 31, 2011
Accounts receivable
Dec. 31, 2011
Cemetery property
Dec. 31, 2011
Property and equipment
Dec. 31, 2011
Merchandise trusts, restricted, at fair value
Perpetual care trusts
Dec. 31, 2011
Merchandise trusts, restricted, at fair value
Merchandise Trusts
Dec. 31, 2011
Perpetual care trust corpus
Perpetual care trusts
Dec. 31, 2011
Deferred Income Tax Liabilities
Dec. 31, 2011
Merchandise Liabilities Noncurrent
Jun. 30, 2012
Second Quarter Twenty Twelve Acquisition
Apr. 30, 2012
Second Quarter Twenty Twelve Acquisition
Dec. 31, 2011
Second Quarter Twenty Twelve Acquisition
Jun. 30, 2012
Second Quarter Twenty Twelve Acquisition
Accounts receivable
Jun. 30, 2012
Second Quarter Twenty Twelve Acquisition
Cemetery property
Jun. 30, 2012
Second Quarter Twenty Twelve Acquisition
Property and equipment
Dec. 31, 2011
Second Quarter Twenty Twelve Acquisition
Property and equipment
Jun. 30, 2012
Second Quarter Twenty Twelve Acquisition
Merchandise trusts, restricted, at fair value
Perpetual care trusts
Dec. 31, 2011
Second Quarter Twenty Twelve Acquisition
Merchandise trusts, restricted, at fair value
Merchandise Trusts
Jun. 30, 2012
Second Quarter Twenty Twelve Acquisition
Noncompete Agreements
Dec. 31, 2011
Second Quarter Twenty Twelve Acquisition
Noncompete Agreements
Jun. 30, 2012
Second Quarter Twenty Twelve Acquisition
Perpetual care trust corpus
Perpetual care trusts
Jun. 30, 2012
Second Quarter Twenty Twelve Acquisition
Other Liabilities
Jun. 30, 2012
Second Quarter Twenty Twelve Acquisition
Deferred Income Tax Liabilities
Dec. 31, 2011
Second Quarter Twenty Twelve Acquisition
Underlying contract value
Dec. 31, 2011
Second Quarter Twenty Twelve Acquisition
Merchandise Liabilities Noncurrent
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of assets acquired
 
 
 
$ 191,000 
 
 
$ 1,534,000 
$ 3,507,000 
 
 
 
 
 
 
$ 72,000 
 
 
 
$ 2,780,000 
$ 105,000 
 
 
 
 
 
 
 
Estimated fair value of property and equipment acquired
 
 
 
 
2,590,000 
2,144,000 
 
 
 
 
 
 
 
 
 
842,000 
518,000 
48,000 
 
 
 
 
 
 
 
 
 
Estimated fair value of intangibles
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12,000 
40,000 
 
 
 
64,000 
 
Total assets
 
 
10,066,000 
 
 
 
 
 
 
 
 
4,224,000 
 
257,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of liabilities assumed
 
 
 
 
 
 
 
 
1,534,000 
525,000 
2,382,000 
 
 
 
 
 
 
 
 
 
 
 
2,780,000 
24,000 
374,000 
 
105,000 
Total liabilities
 
 
6,538,000 
 
 
 
 
 
 
 
 
3,178,000 
 
105,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of net assets acquired
 
 
3,528,000 
 
 
 
 
 
 
 
 
1,046,000 
 
152,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consideration paid
 
 
3,850,000 
 
 
 
 
 
 
 
 
924,000 
900,000 
850,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain on bargain purchase
122,000 
122,000 
 
 
 
 
 
 
 
 
 
122,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consideration paid - units
 
 
 
 
 
 
 
 
 
 
 
350,000 
 
350,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of debt assumed for non-compete agreements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
544,000 
 
 
 
 
 
Total consideration paid
 
 
 
 
 
 
 
 
 
 
 
 
 
1,744,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill from purchase
 
 
$ 322,000 
 
 
 
 
 
 
 
 
 
 
$ 1,592,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Final Assessment of Fair Value of Net Assets Acquired Purchase Price and Resulting Goodwill of Second Quarter Twenty Eleven Acquisition (Detail) (USD $)
Dec. 31, 2011
Business Acquisition [Line Items]
 
Total assets
$ 10,066,000 
Total liabilities
6,538,000 
Fair value of net assets acquired
3,528,000 
Consideration paid
3,850,000 
Goodwill from purchase
322,000 
Accounts receivable
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
191,000 
Cemetery property
 
Business Acquisition [Line Items]
 
Estimated fair value of property and equipment acquired
2,590,000 
Merchandise trusts, restricted, at fair value |
Merchandise Trusts
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
3,507,000 
Merchandise trusts, restricted, at fair value |
Perpetual care trusts
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
1,534,000 
Property and equipment
 
Business Acquisition [Line Items]
 
Estimated fair value of property and equipment acquired
2,144,000 
Other assets
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
100,000 
Deferred margin
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
2,097,000 
Merchandise Liabilities Noncurrent
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
2,382,000 
Perpetual care trust corpus |
Perpetual care trusts
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
1,534,000 
Deferred Income Tax Liabilities
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
$ 525,000 
Segment Information - Additional Information (Detail)
6 Months Ended
Jun. 30, 2012
Entity
Segment Reporting Disclosure [Line Items]
 
Number of distinct reportable segments
5 
Cemetery
 
Segment Reporting Disclosure [Line Items]
 
Number of distinct reportable segments
3 
Segment Information (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Revenues
 
 
 
 
 
Revenues
$ 61,508 
$ 60,107 
$ 121,095 
$ 109,338 
 
Costs and expenses
 
 
 
 
 
Selling
13,123 
12,187 
24,910 
21,731 
 
General and administrative
7,195 
7,031 
14,388 
13,458 
 
Corporate overhead
7,756 
5,986 
14,359 
11,944 
 
Depreciation and amortization
2,230 
2,042 
4,560 
4,488 
 
Funeral home
6,615 
5,698 
13,371 
11,007 
 
Acquisition related costs
782 
1,025 
1,113 
1,958 
 
Total costs and expenses
59,712 
56,647 
113,924 
104,343 
 
Operating profit
1,796 
3,460 
7,171 
4,995 
 
Total assets
1,273,430 
1,188,948 
1,273,430 
1,188,948 
1,249,125 
Long lived asset additions
4,852 
5,650 
10,305 
10,244 
 
Goodwill
34,091 
18,475 
34,091 
18,475 
32,299 
Cemetery
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Cost of sales
7,236 
7,216 
13,656 
12,209 
 
Cemetery
14,775 
15,462 
27,567 
27,548 
 
Cemetery |
Sales
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
34,114 
34,794 
65,137 
59,324 
 
Cemetery |
Service and other
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
19,539 
17,950 
39,166 
35,319 
 
Funeral Homes Property
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
7,855 
7,363 
16,792 
14,695 
 
Cemetery property
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Amortization of cemetery property
2,129 
1,575 
3,980 
2,958 
 
Cemetery Operations South East
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
33,067 
29,043 
63,475 
56,146 
 
Costs and expenses
 
 
 
 
 
Selling
7,691 
7,189 
14,716 
13,605 
 
General and administrative
3,813 
3,292 
7,436 
6,269 
 
Depreciation and amortization
510 
427 
1,046 
758 
 
Total costs and expenses
23,732 
21,338 
44,912 
39,730 
 
Operating profit
9,335 
7,705 
18,563 
16,416 
 
Total assets
491,103 
435,391 
491,103 
435,391 
 
Long lived asset additions
802 
932 
4,765 
3,871 
 
Goodwill
6,254 
629 
6,254 
629 
6,054 
Cemetery Operations South East |
Cemetery
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Cost of sales
4,972 
4,354 
9,263 
8,071 
 
Cemetery
6,746 
6,076 
12,451 
11,027 
 
Cemetery Operations South East |
Cemetery |
Sales
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
23,812 
21,223 
44,692 
39,967 
 
Cemetery Operations South East |
Cemetery |
Service and other
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
9,255 
7,820 
18,783 
16,179 
 
Cemetery Operations South East |
Cemetery property
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Amortization of cemetery property
1,022 
1,000 
2,001 
1,753 
 
Cemetery Operations North East
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
16,683 
14,183 
31,716 
28,112 
 
Costs and expenses
 
 
 
 
 
Selling
3,322 
2,952 
6,458 
5,770 
 
General and administrative
1,487 
1,493 
3,013 
3,020 
 
Depreciation and amortization
215 
230 
440 
444 
 
Total costs and expenses
10,866 
10,289 
20,491 
19,519 
 
Operating profit
5,817 
3,894 
11,225 
8,593 
 
Total assets
291,245 
287,396 
291,245 
287,396 
 
Long lived asset additions
825 
488 
1,374 
752 
 
Cemetery Operations North East |
Cemetery
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Cost of sales
2,028 
1,715 
3,701 
3,316 
 
Cemetery
3,814 
3,899 
6,879 
6,969 
 
Cemetery Operations North East |
Cemetery |
Sales
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
9,545 
8,565 
18,003 
16,533 
 
Cemetery Operations North East |
Cemetery |
Service and other
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
7,138 
5,618 
13,713 
11,579 
 
Cemetery Operations North East |
Cemetery property
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Amortization of cemetery property
853 
591 
1,413 
1,140 
 
Cemetery Operations West
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
17,665 
19,187 
35,218 
38,093 
 
Costs and expenses
 
 
 
 
 
Selling
3,395 
3,784 
6,607 
6,716 
 
General and administrative
1,883 
2,246 
3,923 
4,172 
 
Depreciation and amortization
547 
733 
1,114 
1,241 
 
Total costs and expenses
11,779 
14,312 
23,284 
25,297 
 
Operating profit
5,886 
4,875 
11,934 
12,796 
 
Total assets
384,949 
382,551 
384,949 
382,551 
 
Long lived asset additions
2,630 
1,946 
3,100 
3,277 
 
Goodwill
11,948 
11,949 
11,948 
11,949 
11,948 
Cemetery Operations West |
Cemetery
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Cost of sales
1,739 
2,062 
3,403 
3,616 
 
Cemetery
4,215 
5,487 
8,237 
9,552 
 
Cemetery Operations West |
Cemetery |
Sales
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
10,292 
12,931 
20,324 
23,022 
 
Cemetery Operations West |
Cemetery |
Service and other
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
7,373 
6,256 
14,894 
15,071 
 
Cemetery Operations West |
Cemetery property
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Amortization of cemetery property
275 
215 
569 
394 
 
Funeral Home
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
8,189 
7,563 
17,462 
15,044 
 
Costs and expenses
 
 
 
 
 
Depreciation and amortization
518 
169 
1,138 
567 
 
Funeral home
6,688 
5,698 
13,487 
11,007 
 
Total costs and expenses
7,206 
5,867 
14,625 
11,574 
 
Operating profit
983 
1,696 
2,837 
3,470 
 
Total assets
79,938 
51,521 
79,938 
51,521 
 
Long lived asset additions
401 
2,092 
460 
2,040 
 
Goodwill
15,889 
5,897 
15,889 
5,897 
14,297 
Funeral Home |
Funeral Homes Property
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
8,189 
7,563 
17,462 
15,044 
 
Corporate
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
 
1 
 
5 
 
Costs and expenses
 
 
 
 
 
Selling
370 
97 
831 
678 
 
General and administrative
12 
 
16 
(3)
 
Corporate overhead
7,756 
5,986 
14,359 
11,944 
 
Depreciation and amortization
440 
483 
822 
1,478 
 
Acquisition related costs
782 
1,025 
1,113 
1,958 
 
Total costs and expenses
9,409 
7,591 
17,193 
16,055 
 
Operating profit
(9,409)
(7,590)
(17,193)
(16,050)
 
Total assets
26,195 
32,089 
26,195 
32,089 
 
Long lived asset additions
194 
192 
606 
304 
 
Corporate |
Cemetery
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Cost of sales
49 
 
52 
 
 
Corporate |
Cemetery |
Sales
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
 
1 
 
5 
 
Adjustment
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
(14,096)
(9,870)
(26,776)
(28,062)
 
Costs and expenses
 
 
 
 
 
Selling
(1,655)
(1,835)
(3,702)
(5,038)
 
Funeral home
(73)
 
(116)
 
 
Total costs and expenses
(3,280)
(2,750)
(6,581)
(7,832)
 
Operating profit
(10,816)
(7,120)
(20,195)
(20,230)
 
Adjustment |
Cemetery
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Cost of sales
(1,552)
(915)
(2,763)
(2,794)
 
Adjustment |
Cemetery |
Sales
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
(9,535)
(7,926)
(17,882)
(20,203)
 
Adjustment |
Cemetery |
Service and other
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
(4,227)
(1,744)
(8,224)
(7,510)
 
Adjustment |
Funeral Homes Property
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
(334)
(200)
(670)
(349)
 
Adjustment |
Cemetery property
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Amortization of cemetery property
$ (21)
$ (231)
$ (3)
$ (329)
 
Assets and Liabilities Measured at Fair Value (Detail) (Variable Interest Entity, Primary Beneficiary, USD $)
In Thousands, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Merchandise Trusts |
Short-term investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
$ 30,910 
$ 38,312 
Merchandise Trusts |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
7,946 
10,888 
Merchandise Trusts |
Fixed maturities |
U.S. State and local government agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
23 
23 
Merchandise Trusts |
Fixed maturities |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
7,923 
9,765 
Merchandise Trusts |
Fixed maturities |
Other debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
 
1,100 
Merchandise Trusts |
Mutual funds - debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
90,404 
67,421 
Merchandise Trusts |
Mutual funds - equity securities |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
35,451 
22,847 
Merchandise Trusts |
Mutual funds - equity securities |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
5,361 
28,057 
Merchandise Trusts |
Mutual funds - equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
26,866 
20,308 
Merchandise Trusts |
Mutual funds - equity securities |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
69,242 
70,076 
Merchandise Trusts |
Equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
39,719 
41,469 
Merchandise Trusts |
Equity securities |
Preferred Real Estate Investment Trust
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
1,763 
9,001 
Merchandise Trusts |
Equity securities |
Global equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
22,424 
21,882 
Merchandise Trusts |
Other invested assets
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
8,499 
7,360 
Merchandise Trusts |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
338,585 
337,621 
Merchandise Trusts |
Fair Value, Inputs, Level 1 |
Short-term investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
30,910 
38,312 
Merchandise Trusts |
Fair Value, Inputs, Level 1 |
Mutual funds - debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
90,404 
67,421 
Merchandise Trusts |
Fair Value, Inputs, Level 1 |
Mutual funds - equity securities |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
35,451 
22,847 
Merchandise Trusts |
Fair Value, Inputs, Level 1 |
Mutual funds - equity securities |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
5,361 
28,057 
Merchandise Trusts |
Fair Value, Inputs, Level 1 |
Mutual funds - equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
26,866 
20,308 
Merchandise Trusts |
Fair Value, Inputs, Level 1 |
Mutual funds - equity securities |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
69,242 
70,076 
Merchandise Trusts |
Fair Value, Inputs, Level 1 |
Equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
39,719 
41,469 
Merchandise Trusts |
Fair Value, Inputs, Level 1 |
Equity securities |
Preferred Real Estate Investment Trust
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
1,763 
9,001 
Merchandise Trusts |
Fair Value, Inputs, Level 1 |
Equity securities |
Global equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
22,424 
21,882 
Merchandise Trusts |
Fair Value, Inputs, Level 1 |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
322,140 
319,373 
Merchandise Trusts |
Fair Value, Inputs, Level 2 |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
7,946 
10,888 
Merchandise Trusts |
Fair Value, Inputs, Level 2 |
Fixed maturities |
U.S. State and local government agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
23 
23 
Merchandise Trusts |
Fair Value, Inputs, Level 2 |
Fixed maturities |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
7,923 
9,765 
Merchandise Trusts |
Fair Value, Inputs, Level 2 |
Fixed maturities |
Other debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
 
1,100 
Merchandise Trusts |
Fair Value, Inputs, Level 2 |
Other invested assets
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
8,499 
7,360 
Merchandise Trusts |
Fair Value, Inputs, Level 2 |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
16,445 
18,248 
Perpetual care trusts |
Short-term investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
15,831 
22,607 
Perpetual care trusts |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
24,211 
23,185 
Perpetual care trusts |
Fixed maturities |
U.S. Government and federal agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
512 
513 
Perpetual care trusts |
Fixed maturities |
U.S. State and local government agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
147 
147 
Perpetual care trusts |
Fixed maturities |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
23,181 
22,154 
Perpetual care trusts |
Fixed maturities |
Other debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
371 
371 
Perpetual care trusts |
Mutual funds - debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
105,209 
60,806 
Perpetual care trusts |
Mutual funds - equity securities |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
38,085 
24,580 
Perpetual care trusts |
Mutual funds - equity securities |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
11,956 
20,069 
Perpetual care trusts |
Mutual funds - equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
29,964 
13,515 
Perpetual care trusts |
Mutual funds - equity securities |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
13,059 
41,334 
Perpetual care trusts |
Equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
26,649 
27,998 
Perpetual care trusts |
Equity securities |
Preferred Real Estate Investment Trust
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
778 
19,720 
Perpetual care trusts |
Equity securities |
Global equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
701 
695 
Perpetual care trusts |
Other invested assets
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
 
170 
Perpetual care trusts |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
266,443 
254,679 
Perpetual care trusts |
Fair Value, Inputs, Level 1 |
Short-term investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
15,831 
22,607 
Perpetual care trusts |
Fair Value, Inputs, Level 1 |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
512 
513 
Perpetual care trusts |
Fair Value, Inputs, Level 1 |
Fixed maturities |
U.S. Government and federal agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
512 
513 
Perpetual care trusts |
Fair Value, Inputs, Level 1 |
Mutual funds - debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
105,209 
60,806 
Perpetual care trusts |
Fair Value, Inputs, Level 1 |
Mutual funds - equity securities |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
38,085 
24,580 
Perpetual care trusts |
Fair Value, Inputs, Level 1 |
Mutual funds - equity securities |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
11,956 
20,069 
Perpetual care trusts |
Fair Value, Inputs, Level 1 |
Mutual funds - equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
29,964 
13,515 
Perpetual care trusts |
Fair Value, Inputs, Level 1 |
Mutual funds - equity securities |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
13,059 
41,334 
Perpetual care trusts |
Fair Value, Inputs, Level 1 |
Equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
26,649 
27,998 
Perpetual care trusts |
Fair Value, Inputs, Level 1 |
Equity securities |
Preferred Real Estate Investment Trust
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
778 
19,720 
Perpetual care trusts |
Fair Value, Inputs, Level 1 |
Equity securities |
Global equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
701 
695 
Perpetual care trusts |
Fair Value, Inputs, Level 1 |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
242,744 
231,837 
Perpetual care trusts |
Fair Value, Inputs, Level 2 |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
23,699 
22,672 
Perpetual care trusts |
Fair Value, Inputs, Level 2 |
Fixed maturities |
U.S. State and local government agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
147 
147 
Perpetual care trusts |
Fair Value, Inputs, Level 2 |
Fixed maturities |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
23,181 
22,154 
Perpetual care trusts |
Fair Value, Inputs, Level 2 |
Fixed maturities |
Other debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
371 
371 
Perpetual care trusts |
Fair Value, Inputs, Level 2 |
Other invested assets
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
 
170 
Perpetual care trusts |
Fair Value, Inputs, Level 2 |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
$ 23,699 
$ 22,842 
Subsequent Events - Additional Information (Detail) (Acquired Property Member, USD $)
In Millions, unless otherwise specified
Jul. 31, 2012
Subsequent Event [Line Items]
 
Consideration paid
$ 25.0 
Funeral Homes Property
 
Subsequent Event [Line Items]
 
Number of properties acquired
9 
Cemetery property
 
Subsequent Event [Line Items]
 
Number of properties acquired
4