STONEMOR PARTNERS LP, 10-Q filed on 5/8/2014
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2014
May 1, 2014
Document Information [Line Items]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Mar. 31, 2014 
 
Document Fiscal Year Focus
2014 
 
Document Fiscal Period Focus
Q1 
 
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
 
23,712,550 
Condensed Consolidated Balance Sheet (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Current assets:
 
 
Cash and cash equivalents
$ 8,240 
$ 12,175 
Accounts receivable, net of allowance
55,809 
55,415 
Prepaid expenses
2,480 
3,622 
Other current assets
19,199 
22,667 
Total current assets
85,728 
93,879 
Long-term accounts receivable, net of allowance
80,484 
78,367 
Cemetery property
314,909 
316,469 
Property and equipment, net of accumulated depreciation
84,555 
85,007 
Merchandise trusts, restricted, at fair value
449,853 
431,556 
Perpetual care trusts, restricted, at fair value
318,154 
311,771 
Deferred financing costs, net of accumulated amortization
7,836 
8,308 
Deferred selling and obtaining costs
90,801 
87,998 
Deferred tax assets
42 
42 
Goodwill
48,737 
48,737 
Other assets
11,868 
12,209 
Total assets
1,492,967 
1,474,343 
Current liabilities:
 
 
Accounts payable and accrued liabilities
24,273 
37,269 
Accrued interest
5,013 
1,512 
Current portion, long-term debt
1,555 
2,916 
Total current liabilities
30,841 
41,697 
Other long-term liabilities
1,457 
1,527 
Long-term debt
252,054 
289,016 
Deferred cemetery revenues, net
598,159 
579,993 
Deferred tax liabilities
12,498 
12,407 
Merchandise liability
131,817 
130,412 
Perpetual care trust corpus
318,154 
311,771 
Total liabilities
1,344,980 
1,366,823 
Commitments and contingencies
   
   
Partners' capital
 
 
General partner
(2,693)
(2,137)
Common partners
150,680 
109,657 
Total partners' capital
147,987 
107,520 
Total liabilities and partners' capital
$ 1,492,967 
$ 1,474,343 
Condensed Consolidated Statement of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Revenues:
 
 
Total revenues
$ 64,387 
$ 59,612 
Costs and expenses:
 
 
Selling expense
11,189 
11,224 
General and administrative expense
7,645 
7,582 
Corporate overhead (including $271 and $330 in unit-based compensation for the three months ended March 31, 2014 and 2013, respectively)
7,456 
7,988 
Depreciation and amortization
2,368 
2,330 
Acquisition related costs, net of recoveries
349 
1,283 
Total cost and expenses
59,126 
58,218 
Operating profit
5,261 
1,394 
Gain on acquisition
412 
 
Gain on settlement agreement
 
912 
Interest expense
5,574 
5,463 
Net income (loss) before income taxes
99 
(3,157)
Income tax expense (benefit)
(310)
(957)
Net income (loss)
409 
(2,200)
General partner's interest in net income (loss) for the period
(40)
Limited partners' interest in net income (loss) for the period
405 
(2,160)
Net income (loss) per limited partner unit (basic and diluted)
$ 0.02 
$ (0.11)
Weighted average number of limited partners' units outstanding - basic
22,493 
19,729 
Weighted average number of limited partners' units outstanding - diluted
22,787 
19,729 
Distributions declared per unit
$ 0.600 
$ 0.590 
Cemetery
 
 
Revenues:
 
 
Merchandise
26,068 
26,652 
Services
10,297 
11,299 
Investment and other
16,275 
10,243 
Costs and expenses:
 
 
Perpetual care
1,391 
1,281 
Merchandise
6,113 
5,009 
Cemetery expense
13,329 
12,785 
Funeral Home
 
 
Revenues:
 
 
Merchandise
5,052 
4,953 
Services
6,695 
6,465 
Total revenues
13,254 
12,827 
Costs and expenses:
 
 
Perpetual care
4,787 
4,557 
Merchandise
1,646 
1,522 
Other
2,853 
2,657 
Depreciation and amortization
736 
659 
Total cost and expenses
10,240 
9,582 
Operating profit
$ 3,014 
$ 3,245 
Condensed Consolidated Statement of Operations (Parenthetical) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Corporate overhead, unit-based compensation
$ 271 
$ 330 
Condensed Consolidated Statement of Partners' Capital (USD $)
In Thousands
Total
Common Unit Holders
General Partner
Beginning Balance at Dec. 31, 2013
$ 107,520 
$ 109,657 
$ (2,137)
Proceeds from public offering
53,178 
53,178 
 
Compensation related to units awards
271 
271 
 
Net income
409 
405 
Cash distributions
(13,391)
(12,831)
(560)
Ending Balance at Mar. 31, 2014
$ 147,987 
$ 150,680 
$ (2,693)
Condensed Consolidated Statement of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Operating activities:
 
 
Net income (loss)
$ 409 
$ (2,200)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
Cost of lots sold
3,057 
1,735 
Depreciation and amortization
2,368 
2,330 
Unit-based compensation
271 
330 
Accretion of debt discounts
624 
490 
Gain on settlement agreement
 
(912)
Gain on acquisition
(412)
 
Changes in assets and liabilities that provided (used) cash:
 
 
Accounts receivable
(3,168)
(1,385)
Allowance for doubtful accounts
705 
(1,317)
Merchandise trust fund
(16,420)
(12,161)
Prepaid expenses
1,142 
566 
Other current assets
3,394 
696 
Other assets
(44)
(770)
Accounts payable and accrued and other liabilities
(9,564)
5,278 
Deferred selling and obtaining costs
(2,803)
(2,745)
Deferred cemetery revenue
18,881 
18,987 
Deferred taxes (net)
(551)
(1,051)
Merchandise liability
(829)
(1,004)
Net cash provided by (used in) operating activities
(2,940)
6,867 
Investing activities:
 
 
Cash paid for cemetery property
(748)
(1,076)
Purchase of subsidiaries
(200)
(9,100)
Cash paid for property and equipment
(1,330)
(1,771)
Net cash used in investing activities
(2,278)
(11,947)
Financing activities:
 
 
Cash distributions
(13,391)
(12,025)
Additional borrowings on long-term debt
17,000 
20,948 
Repayments of long-term debt
(55,504)
(41,522)
Proceeds from public offering
53,178 
38,377 
Cost of financing activities
 
(108)
Net cash provided by financing activities
1,283 
5,670 
Net increase (decrease) in cash and cash equivalents
(3,935)
590 
Cash and cash equivalents - Beginning of period
12,175 
7,946 
Cash and cash equivalents - End of period
8,240 
8,536 
Supplemental disclosure of cash flow information:
 
 
Cash paid during the period for interest
1,423 
1,245 
Cash paid during the period for income taxes
 
451 
Non-cash investing and financing activities:
 
 
Acquisition of assets by financing
30 
62 
Issuance of limited partner units for cemetery acquisition
 
3,592 
Acquisition of asset by assumption of directly related liability
 
$ 3,924 
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 March 31, 2014, the Partnership operated 278 cemeteries in 27 states and Puerto Rico, of which 260 are owned and 18 are operated under management or operating agreements. The Partnership also owned and operated 90 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 March 31, 2014 and for the three months ended March 31, 2014 and 2013 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, 2013 condensed consolidated balance sheet data was derived from audited financial statements included in the Company’s 2013 Annual Report on Form 10-K (“2013 Form 10-K”) and has been adjusted to include the effects of retrospective adjustments resulting from the Company’s 2013 first quarter acquisition, but does not include all disclosures required by GAAP, which are presented in the Company’s 2013 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 trusts and perpetual care trusts, 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, consisted of the following:

 

     As of  
     March 31,
2014
    December 31,
2013
 
     (in thousands)  

Customer receivables

   $ 177,349      $ 174,062   

Unearned finance income

     (19,807     (20,005

Allowance for contract cancellations

     (21,249     (20,275
  

 

 

   

 

 

 
     136,293        133,782   

Less: current portion, net of allowance

     55,809        55,415   
  

 

 

   

 

 

 

Long-term portion, net of allowance

   $ 80,484      $ 78,367   
  

 

 

   

 

 

 

Activity in the allowance for contract cancellations is as follows:

 

     For the three months ended March 31,  
     2014     2013  
     (in thousands)  

Balance—Beginning of period

   $ 20,275      $ 17,933   

Provision for cancellations

     5,031        4,986   

Charge-offs—net

     (4,057     (3,803
  

 

 

   

 

 

 

Balance—End of period

   $ 21,249      $ 19,116   
  

 

 

   

 

 

 

CEMETERY PROPERTY
CEMETERY PROPERTY
3. CEMETERY PROPERTY

Cemetery property consists of the following:

 

     As of  
     March 31,      December 31,  
     2014      2013  
     (in thousands)  

Developed land

   $ 71,159       $ 72,458   

Undeveloped land

     164,335         163,997   

Mausoleum crypts and lawn crypts

     69,617         70,216   

Other land

     9,798         9,798   
  

 

 

    

 

 

 

Total

   $ 314,909       $ 316,469   
  

 

 

    

 

 

 

 

PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT

4. PROPERTY AND EQUIPMENT

Major classes of property and equipment follow:

 

     As of  
     March 31,     December 31,  
     2014     2013  
     (in thousands)  

Building and improvements

   $ 92,301      $ 91,575   

Furniture and equipment

     45,172        44,828   
  

 

 

   

 

 

 
     137,473        136,403   

Less: accumulated depreciation

     (52,918     (51,396
  

 

 

   

 

 

 

Property and equipment—net

   $ 84,555      $ 85,007   
  

 

 

   

 

 

 

Depreciation expense was $2.0 million and $1.7 million during the three months ended March 31, 2014 and 2013, respectively.

MERCHANDISE TRUSTS
MERCHANDISE TRUSTS

5. MERCHANDISE TRUSTS

At March 31, 2014, 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 $8.0 million and $8.3 million of investments held in trust by the West Virginia Funeral Directors Association at March 31, 2014 and December 31, 2013, 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 their fair value.

 

The cost and market value associated with the assets held in merchandise trusts at March 31, 2014 and December 31, 2013 were as follows:

 

As of March 31, 2014

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

Short-term investments

   $ 59,227       $ —         $ —        $ 59,227   

Fixed maturities:

          

U.S. Government and federal agency

     —           —           —          —     

U.S. State and local government agency

     —           —           —          —     

Corporate debt securities

     9,394         87         (53     9,428   

Other debt securities

     5,849         —           (7     5,842   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     15,243         87         (60     15,270   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds—debt securities

     118,629         844         (5,881     113,592   

Mutual funds—equity securities

     151,527         9,586         (1,899     159,214   

Equity securities

     82,168         8,132         (1,021     89,279   

Other invested assets

     5,414         —           (176     5,238   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total managed investments

   $ 432,208       $ 18,649       $ (9,037   $ 441,820   
  

 

 

    

 

 

    

 

 

   

 

 

 

West Virginia Trust Receivable

     8,033         —           —          8,033   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 440,241       $ 18,649       $ (9,037   $ 449,853   
  

 

 

    

 

 

    

 

 

   

 

 

 

As of December 31, 2013

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

Short-term investments

   $ 46,518       $ —         $ —        $ 46,518   

Fixed maturities:

          

U.S. Government and federal agency

     —           —           —          —     

U.S. State and local government agency

     —           —           —          —     

Corporate debt securities

     9,105         162         (96     9,171   

Other debt securities

     7,336         —           (12     7,324   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     16,441         162         (108     16,495   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds—debt securities

     117,761         729         (7,157     111,333   

Mutual funds—equity securities

     144,249         16,610         (3,329     157,530   

Equity securities

     81,520         5,267         (1,092     85,695   

Other invested assets

     5,809         —           (86     5,723   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total managed investments

   $ 412,298       $ 22,768       $ (11,772   $ 423,294   
  

 

 

    

 

 

    

 

 

   

 

 

 

West Virginia Trust Receivable

     8,262         —           —          8,262   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 420,560       $ 22,768       $ (11,772   $ 431,556   
  

 

 

    

 

 

    

 

 

   

 

 

 

The contractual maturities of debt securities as of March 31, 2014 were as follows:

 

As of March 31, 2014

   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

     —           —           —           —     

Corporate debt securities

     —           3,989         5,439         —     

Other debt securities

     650         5,192         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

   $ 650       $ 9,181       $ 5,439       $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 

 

An aging of unrealized losses on the Company’s investments in fixed maturities and equity securities at March 31, 2014 and December 31, 2013 is presented below:

 

     Less than 12 months      12 Months or more      Total  
     Fair      Unrealized      Fair      Unrealized      Fair      Unrealized  

As of March 31, 2014

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

     1,967         10         1,605         43         3,572         53   

Other debt securities

     4,469         7         —           —           4,469         7   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     6,436         17         1,605         43         8,041         60   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds—debt securities

     1,984         25         91,694         5,856         93,678         5,881   

Mutual funds—equity securities

     53,436         1,114         4,317         785         57,753         1,899   

Equity securities

     11,552         786         1,427         235         12,979         1,021   

Other invested assets

     2,125         176         —           —           2,125         176   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 75,533       $ 2,118       $ 99,043       $ 6,919       $ 174,576       $ 9,037   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     Less than 12 months      12 Months or more      Total  
     Fair      Unrealized      Fair      Unrealized      Fair      Unrealized  

As of December 31, 2013

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

     2,812         43         1,249         53         4,061         96   

Other debt securities

     5,329         8         995         4         6,324         12   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     8,141         51         2,244         57         10,385         108   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds—debt securities

     87,113         6,724         6,485         433         93,598         7,157   

Mutual funds—equity securities

     29,993         2,444         4,217         885         34,210         3,329   

Equity securities

     25,379         1,031         1,492         61         26,871         1,092   

Other invested assets

     2,266         86         —           —           2,266         86   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 152,892       $ 10,336       $ 14,438       $ 1,436       $ 167,330       $ 11,772   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

A reconciliation of the Company’s merchandise trust activities for the three months ended March 31, 2014 is presented below:

 

Fair
Value at
12/31/2013
     Contributions      Distributions     Interest/
Dividends
     Capital
Gain
Distributions
     Realized
Gain/
Loss
     Taxes     Fees     Unrealized
Change in
Fair Value
    Fair
Value at
3/31/2014
 
(in thousands)  
$ 431,556         16,699         (8,891     4,428         36         8,049         (69     (571     (1,384   $ 449,853   

The Company made net contributions into the trusts of approximately $7.8 million during the three months ended March 31, 2014. During the three months ended March 31, 2014, purchases and sales of securities available for sale included in trust investments were approximately $155.3 million and $154.0 million, respectively. Contributions include $2.6 million of assets that were acquired through an acquisition during the three months ended March 31, 2014.

 

Other-Than-Temporary Impairments of Trust Assets

During the three months ended March 31, 2014, the Company determined that there were no other than temporary impairments to the investment portfolio for merchandise trusts. During the three months ended March 31, 2013, the Company determined that there were 4 securities with an aggregate cost basis of approximately $1.4 million and an aggregate fair value of approximately $0.7 million, resulting in an impairment of $0.7 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 March 31, 2014, 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; 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 cost and market value associated with the assets held in perpetual care trusts at March 31, 2014 and December 31, 2013 were as follows:

 

            Gross      Gross        
            Unrealized      Unrealized     Fair  

As of March 31, 2014

   Cost      Gains      Losses     Value  
     (in thousands)  

Short-term investments

   $ 20,381       $ —         $ —        $ 20,381   

Fixed maturities:

          

U.S. Government and federal agency

     100         19         —          119   

U.S. State and local government agency

     —           —           —          —     

Corporate debt securities

     24,533         507         (103     24,937   

Other debt securities

     371         —           —          371   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     25,004         526         (103     25,427   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds—debt securities

     121,250         550         (4,867     116,933   

Mutual funds—equity securities

     93,132         21,270         (143     114,259   

Equity securities

     26,241         14,745         (11     40,975   

Other invested assets

     179         —           —          179   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 286,187       $ 37,091       $ (5,124   $ 318,154   
  

 

 

    

 

 

    

 

 

   

 

 

 
            Gross      Gross        
            Unrealized      Unrealized     Fair  

As of December 31, 2013

   Cost      Gains      Losses     Value  
     (in thousands)  

Short-term investments

   $ 16,686       $ —         $ —        $ 16,686   

Fixed maturities:

          

U.S. Government and federal agency

     302         70         —          372   

U.S. State and local government agency

     —           —           —          —     

Corporate debt securities

     24,378         340         (208     24,510   

Other debt securities

     371         —           —          371   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     25,051         410         (208     25,253   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds—debt securities

     121,493         466         (5,946     116,013   

Mutual funds—equity securities

     93,243         22,521         (171     115,593   

Equity securities

     25,580         12,283         (19     37,844   

Other invested assets

     172         210         —          382   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 282,225       $ 35,890       $ (6,344   $ 311,771   
  

 

 

    

 

 

    

 

 

   

 

 

 

The contractual maturities of debt securities as of March 31, 2014 were as follows:

 

     Less than      1 year through      6 years through      More than  

As of March 31, 2014

   1 year      5 years      10 years      10 years  
     (in thousands)  

U.S. Government and federal agency

   $ —         $ 119       $ —         $ —     

U.S. State and local government agency

     —           —           —           —     

Corporate debt securities

     140         12,463         12,333         1   

Other debt securities

     371         —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

   $ 511       $ 12,582       $ 12,333       $ 1   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

An aging of unrealized losses on the Company’s investments in fixed maturities and equity securities at March 31, 2014 and December 31, 2013 held in perpetual care trusts is presented below:

 

     Less than 12 months      12 Months or more      Total  
     Fair      Unrealized      Fair      Unrealized      Fair      Unrealized  

As of March 31, 2014

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

     1,319         6         4,612         97         5,931         103   

Other debt securities

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     1,319         6         4,612         97         5,931         103   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds—debt securities

     1,705         41         108,678         4,826         110,383         4,867   

Mutual funds—equity securities

     1,213         143         —           —           1,213         143   

Equity securities

     175         11         —           —           175         11   

Other invested assets

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 4,412       $ 201       $ 113,290       $ 4,923       $ 117,702       $ 5,124   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     Less than 12 months      12 Months or more      Total  
     Fair      Unrealized      Fair      Unrealized      Fair      Unrealized  

As of December 31, 2013

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

     5,664         93         3,122         115         8,786         208   

Other debt securities

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     5,664         93         3,122         115         8,786         208   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds—debt securities

     93,473         4,781         16,367         1,165         109,840         5,946   

Mutual funds—equity securities

     1,185         171         —           —           1,185         171   

Equity securities

     513         19         —           —           513         19   

Other invested assets

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 100,835       $ 5,064       $ 19,489       $ 1,280       $ 120,324       $ 6,344   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

A reconciliation of the Company’s perpetual care trust activities for the three months ended March 31, 2014 is presented below:

 

Fair
Value at
12/31/2013
     Contributions      Distributions     Interest/
Dividends
     Capital
Gain
Distributions
     Realized
Gain/
Loss
     Taxes     Fees     Unrealized
Change in
Fair Value
     Fair
Value at
3/31/2014
 
(in thousands)  
$ 311,771         4,352         (4,096     4,082         —           106         (64     (418     2,421       $ 318,154   

The Company made net contributions into the trusts of approximately $0.3 million during the three months ended March 31, 2014. During the three months ended March 31, 2014, purchases and sales of securities available for sale included in trust investments were approximately $15.9 million and $14.5 million, respectively. Contributions include $0.7 million of assets that were acquired through an acquisition during the three months ended March 31, 2014.

 

Other-Than-Temporary Impairments of Trust Assets

During the three months ended March 31, 2014 and 2013, the Company determined that there were no other than temporary impairments to the investment portfolio in the perpetual care trusts.

 

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
Homes
     Total  
     Southeast      Northeast      West        
     (in thousands)  

Balance as of December 31, 2013

   $ 6,174       $ —         $ 11,948       $ 30,615       $ 48,737   

Goodwill acquired from acquisitions during the three months ended March 31, 2014

     —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of March 31, 2014

   $ 6,174       $ —         $ 11,948       $ 30,615       $ 48,737   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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 unaudited condensed consolidated balance sheet. All of the intangible assets are subject to amortization. The major classes of intangible assets are as follows:

 

     As of      As of  
     March 31, 2014      December 31, 2013  
     Gross Carrying      Accumulated     Net Intangible      Gross Carrying      Accumulated     Net Intangible  
     Amount      Amortization     Asset      Amount      Amortization     Asset  
     (in thousands)  

Amortized intangible assets:

               

Underlying contract value

   $ 6,239       $ (741   $ 5,498       $ 6,239       $ (702   $ 5,537   

Non-compete agreements

     7,950         (4,339     3,611         7,950         (4,003     3,947   

Other intangible assets

     269         (102     167         269         (98     171   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total intangible assets

   $ 14,458       $ (5,182   $ 9,276       $ 14,458       $ (4,803   $ 9,655   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

 

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

The Company had the following outstanding debt:

 

     As of  
     March 31,      December 31,  
     2014      2013  
     (in thousands)  

7.875% Senior Notes, due 2021

   $ 175,000       $ 175,000   

Revolving Credit Facility, due January 2017

     77,402         114,002   

Notes payable—acquisition debt

     985         1,571   

Notes payable—acquisition non-competes

     3,443         3,945   

Insurance and vehicle financing

     743         1,529   
  

 

 

    

 

 

 

Total

     257,573         296,047   

Less current portion

     1,555         2,916   

Less unamortized bond and note payable discounts

     3,964         4,115   
  

 

 

    

 

 

 

Long-term portion

   $ 252,054       $ 289,016   
  

 

 

    

 

 

 

 

This note includes a summary of material terms of the Company’s senior notes and revolving credit facility. For a more detailed description of the Company’s long-term debt agreements, see the Company’s 2013 Form 10-K.

7.875% Senior Notes due 2021

On May 28, 2013, the Company issued $175.0 million aggregate principal amount of 7.875% Senior Notes due 2021 (the “Senior Notes”). The Company pays 7.875% 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, commencing on December 1, 2013. The net proceeds from the offering were used to retire a $150.0 million aggregate principal amount of 10.25% Senior Notes due 2017 (the “Prior Senior Notes”) and the remaining proceeds were used for general corporate purposes. The Senior Notes were issued at 97.832% of par resulting in gross proceeds of $171.2 million with an original issue discount of approximately $3.8 million. The Company incurred debt issuance costs and fees of approximately $4.6 million. These costs and fees are deferred and will be amortized over the life of these notes. Based on trades made on March 31, 2014, the Company has estimated the fair value of its Senior Notes to be in excess of par and trading at a premium of 4.06%, which would imply a fair value of $182.1 million at March 31, 2014. The Senior Notes are valued using Level 2 inputs as defined by the Fair Value Measurements and Disclosures topic of the ASC in Note 15. As of March 31, 2014, the Company was in compliance with all applicable covenants of the Senior Notes.

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 Second Amended and Restated Credit Agreement, as amended. 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 was amended three times in 2013. As amended, the Company has a revolving credit facility (the “Credit Facility”) with a borrowing limit of $140.0 million, of which $77.4 million was outstanding at March 31, 2014, and a maturity date of January 19, 2017. The Credit Facility may be used to finance working capital requirements, Permitted Acquisitions and Capital Expenditures. The Maximum Consolidated Leverage Ratio was 4.00 through December 31, 2013, 3.875 at March 31, 2014, and will be 3.750 for the measurement period ending on June 30, 2014 and thereafter. The Minimum Consolidated Debt Service Coverage Ratio is 2.50 for all measurement periods. The ranges of the Applicable Rates are 3.00%, 4.00%, and .800% for Base Rate Loans, Eurodollar Rate Loans and Letter of Credit Fees, and Commitment Fees, respectively, when the Consolidated Leverage Ratio is greater than or equal to 3.75 to 1.0. The Company is not allowed to permit Consolidated EBITDA for any most recently completed four fiscal quarters to be less than the sum of (i) $57.8 million plus (ii) 80% of the aggregate of all Consolidated EBITDA for each Permitted Acquisition completed after March 31, 2013.

The amount of aggregate consideration the Company may pay for a Permitted Acquisition after March 31, 2014, without Required Lender approval, is $10.0 million on an individual basis and $50.0 million when aggregated with the total Aggregate Consideration paid by or on behalf of the Company for all other Permitted Acquisitions which closed within the immediately preceding 365 days. In case of a Significant Permitted Acquisition Transaction, a Permitted Acquisition in which the Aggregate Consideration exceeds $35.0 million when aggregated with the total Aggregate Consideration for all other Permitted Acquisitions which closed within the immediately preceding 180 days, the Borrowers are permitted, subject to certain limitations, to temporarily increase the Consolidated Leverage Ratio to 4.00 to 1.0 for one or more of the four immediately succeeding covenant measurement periods.

The interest rates on amounts outstanding under the Credit Facility were approximately 4.2% at March 31, 2014. 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 3.00% and 2.25% to 4.00%, 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. Amounts outstanding under the Credit Facility approximate their fair value.

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 usage of such commitments. The Commitment Fee Rate ranges from 0.375% to 0.800% 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 (and cause cross-default) which would have a material adverse effect on the Company’s business, financial condition or results of operations. The Company’s covenants include a certain measure of Consolidated EBITDA, a Consolidated Leverage Ratio and a Consolidated Debt Service Coverage Ratio. As of March 31, 2014, the Company was in compliance with all applicable financial covenants.

The Company routinely incurs debt financing costs and fees when borrowing under, or making amendments to the Credit Facility. These costs and fees are deferred and are amortized over the life of the Credit Facility.

INCOME TAXES
INCOME TAXES
9. INCOME TAXES

As of March 31, 2014, the Company’s taxable corporate subsidiaries had federal net operating loss carryforwards of approximately $194.3 million, which will begin to expire in 2019 and $238.2 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 bases 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 months ended March 31, 2014 and 2013 is based upon the estimated annual effective tax rates expected to be applicable to the Company for 2014 and 2013, 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 Internal Revenue Service (“IRS”) audited the Company’s federal income tax return for the year ended December 31, 2010. The scope of this audit included an audit of the Company’s qualifying income. In order to be treated as a partnership for federal income tax purposes, at least 90% of the Company’s gross income must be qualifying income. The IRS concluded its audit and notified the Company on April 11, 2013 that it was not proposing any adjustments to the return as filed.

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 opened from 2010 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 March 31, 2014 and December 31, 2013, deferred cemetery revenues, net, consisted of the following:

 

     As of  
     March 31,     December 31,  
     2014     2013  
     (in thousands)  

Deferred cemetery revenue

   $ 417,298      $ 403,250   

Deferred merchandise trust revenue

     97,536        88,730   

Deferred merchandise trust unrealized gains (losses)

     9,612        10,996   

Deferred pre-acquisition margin

     130,037        131,274   

Deferred cost of goods sold

     (56,324     (54,257
  

 

 

   

 

 

 

Deferred cemetery revenues, net

   $ 598,159      $ 579,993   
  

 

 

   

 

 

 

Deferred selling and obtaining costs

   $ 90,801      $ 87,998   

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 March 31, 2014, 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 twenty five years and options to renew at varying terms. Expenses under operating leases were $0.6 million and $0.7 million during the three months ended March 31, 2014 and 2013, respectively.

At March 31, 2014, operating leases will result in future payments in the following approximate amounts from January 1, 2015 and beyond:

 

     (in thousands)  

2015

   $ 1,203   

2016

     1,054   

2017

     965   

2018

     899   

2019

     883   

Thereafter

     1,215   
  

 

 

 

Total

   $ 6,219   
  

 

 

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 months ended March 31, 2014 and 2013 are summarized in the table below:

 

     Three months ended  
     March 31,  
     2014      2013  
     (in thousands)  

Unit appreciation rights

   $ 19       $ 139   

Restricted phantom units

     252         191   
  

 

 

    

 

 

 

Total unit-based compensation expense

   $ 271       $ 330   
  

 

 

    

 

 

 

As of March 31, 2014, there was approximately $0.2 million in non-vested unit appreciation rights expense outstanding. These unit appreciation rights will be expensed through 2017.

The diluted weighted average number of limited partners’ units outstanding presented on the unaudited condensed consolidated statement of operations does not include 315,873 units for the three months ended March 31, 2013, as their effects would be anti-dilutive.

Other Unit Issuances

On February 27, 2014, the Company completed a follow-on public offering of 2,300,000 common units at a price of $24.45 per unit. Net proceeds of the offering, after deducting underwriting discounts and offering expenses, were approximately $53.2 million. The proceeds from the offering were used to pay down borrowings outstanding under the Credit Facility.

ACQUISITIONS
ACQUISITIONS

13. ACQUISITIONS

First Quarter 2014 Acquisition

On January 16, 2014, certain subsidiaries of the Company (collectively the “Buyer”) entered into an Asset Purchase and Sale Agreement with Carriage Cemetery Services, Inc. (the “Seller”). Pursuant to the Agreement, the Buyer acquired one cemetery in Florida, including certain related assets, and assumed certain related liabilities. In consideration for the net assets acquired, the Buyer paid the Seller $0.2 million in cash.

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

 

     Preliminary  
     Assessment  
     (in thousands)  

Assets:

  

Accounts receivable

   $ 47   

Cemetery property

     470   

Property and equipment

     140   

Merchandise trusts, restricted, at fair value

     2,607   

Perpetual care trusts, restricted, at fair value

     691   
  

 

 

 

Total assets

     3,955   
  

 

 

 

Liabilities:

  

Deferred margin

     1,035   

Merchandise liabilities

     956   

Deferred tax liability

     641   

Perpetual care trust corpus

     691   

Other liabilities

     20   
  

 

 

 

Total liabilities

     3,343   
  

 

 

 

Fair value of net assets acquired

     612   
  

 

 

 

Consideration paid

     200   
  

 

 

 

Gain on bargain purchase

   $ 412   
  

 

 

 

First Quarter 2013 Acquisition

On February 19, 2013, StoneMor Florida Subsidiary LLC, a subsidiary of the Company, (the “Buyer) entered into an Asset Purchase and Sale Agreement (the “Seawinds Agreement”) with several Florida limited liability companies and one individual (collectively the “Seller”). Pursuant to the Agreement, the Buyer acquired six funeral homes in Florida, including certain related assets, and assumed certain related liabilities.

In consideration for the net assets acquired, the Buyer paid the Seller $9.1 million in cash and issued 159,635 common units, which equates to approximately $3.6 million worth of common units under the terms of the Seawinds Agreement. The Buyer also issued an unsecured promissory note in the amount of $3.0 million that was payable on February 19, 2014 and bore interest at 5.0%. In addition, the Buyer will also pay an aggregate amount of $1.2 million in six equal annual installments commencing on February 19, 2014 in exchange for a non-compete agreement with the Seller. The non-compete agreement will be amortized over the 6 year term of the agreement.

The table below reflects the Company’s final assessment of the fair value of net assets acquired and displays the adjustments made to the revised values reported at December 31, 2013. The Company obtained additional information in the first quarter of 2014 and has retrospectively adjusted these values as noted below. The resulting goodwill is recorded in the Company’s Funeral Homes operating segment.

 

     Revised            Final  
     Assessment      Adjustments     Assessment  
     (in thousands)  

Assets:

       

Accounts receivable

   $ 695       $ 311      $ 1,006   

Property and equipment

     8,315         —          8,315   

Merchandise trusts, restricted, at fair value

     4,853         —          4,853   

Non-compete agreements

     1,927         —          1,927   
  

 

 

    

 

 

   

 

 

 

Total assets

     15,790         311        16,101   
  

 

 

    

 

 

   

 

 

 

Liabilities:

       

Deferred margin

     2,419         (1,592     827   

Merchandise liabilities

     2,233         2,606        4,839   

Other liabilities

     164         —          164   
  

 

 

    

 

 

   

 

 

 

Total liabilities

     4,816         1,014        5,830   
  

 

 

    

 

 

   

 

 

 

Fair value of net assets acquired

     10,974         (703     10,271   
  

 

 

    

 

 

   

 

 

 

Consideration paid—cash

     9,100         —          9,100   

Consideration paid—units

     3,592         —          3,592   

Fair value of note payable

     3,000         —          3,000   

Fair value of debt assumed for non-compete agreement

     924         —          924   
  

 

 

    

 

 

   

 

 

 

Total consideration paid

     16,616         —          16,616   
  

 

 

    

 

 

   

 

 

 

Goodwill from purchase

   $ 5,642       $ 703      $ 6,345   
  

 

 

    

 

 

   

 

 

 

If the acquisitions from 2014 and 2013 had been consummated at the beginning of the comparable prior annual reporting period, on a pro forma basis, for the three months ended March 31, 2014 and 2013, consolidated revenues, consolidated net income (loss) and net income (loss) per limited partner unit (basic and diluted) would have been as follows:

 

     As of March 31,  
     2014     2013  
     (in thousands)  

Revenue

   $ 64,398      $ 60,111   

Net income (loss)

     (2     (1,655

Net income (loss) per limited partner unit (basic and diluted)

   $ —        $ (.08

These pro forma results are unaudited and have been prepared for comparative purposes only and include certain adjustments such as increased interest on the acquisition of debt and the recognition of a gain on acquisition occurring during 2014 in 2013 rather than in the current period. They do not purport to be indicative of the results of operations which actually would have resulted had the combination been in effect on January 1, 2013 or of future results of operations of the locations.

The property acquired in 2014 has contributed less than $0.1 million of revenue and operating profit for the three months ended March 31, 2014. The properties acquired in the first quarter of 2013 have contributed $1.0 million of revenue and incurred less than $0.1 million of operating loss for the three months ended March 31, 2014.

First Quarter 2013 Settlement

During the three months ended March 31, 2013, recovery was effectuated of $1.3 million related to the partial settlement of claims from locations that the Company acquired in 2010. A gain of $0.9 million had been recorded as gain on settlement agreement on the unaudited condensed consolidated statement of operations, which was net of legal fees of $0.4 million. The balance of the funds was returned to the Company as a repayment for funds advanced to trusts at the time of acquisition.

 

Agreements with the Archdiocese of Philadelphia

On September 26, 2013, StoneMor Operating, LLC (“Operating Company”), StoneMor Pennsylvania LLC (“StoneMor Pennsylvania”) and StoneMor Pennsylvania Subsidiary LLC (“Subsidiary” and together with the Operating Company and StoneMor Pennsylvania, “Tenant”), each of which is a direct or indirect subsidiary of StoneMor Partners L.P. (“StoneMor”), and the Archdiocese of Philadelphia, an archdiocese governed by Canon Law of the Roman Catholic Church (“Landlord”) entered into a Lease Agreement (the “Lease”) and a Management Agreement (the “Management Agreement”), pursuant to which Tenant will operate 13 cemeteries in Pennsylvania. StoneMor joined the Lease and the Management Agreement as a guarantor of all Tenant’s obligations under this operating arrangement.

On March 20, 2014, Tenant entered into Amendment No. 1 (the “Amendment”) to the Lease, which extended the period for satisfying certain conditions precedent under the Lease to May 30, 2014 (the “Pre-Commencement Expiration Date”), after which each of Tenant and Landlord has the right to terminate the Lease if the conditions precedent are not satisfied. These conditions include, but are not limited to, the Tenant’s obtaining of financing for the Up-Front Rent, as defined below, and commencement of the Lease is a condition precedent to commencement of the Management Agreement. The parties to the Amendment also acknowledged that certain conditions precedent set forth in the Lease had expired or been satisfied, including obtaining the approval of the Orphans’ Division of the Court of Common Pleas of Philadelphia County.

Subject to certain closing conditions set forth in the Lease, Landlord agreed to lease to Tenant eight cemetery sites in the Philadelphia area. The Lease granted Tenant a sole and exclusive license (the “License”) to maintain and construct improvements in the operation of the cemeteries and to sell burial rights and all related merchandise and services, subject to the terms and conditions of the Lease. The Management Agreement enabled Tenant, subject to certain closing conditions, to serve as the exclusive operator of the remaining five cemeteries.

The term of the Lease and the Management Agreement shall commence (the “Commencement Date”) after the satisfaction or waiver of the Tenant’s and Landlord’s Pre-Commencement Conditions, and shall expire on the last day of the month on which the 60th anniversary of the Commencement Date occurs, subject to earlier termination as provided in the Lease (such date, the “Termination Date”). The Lease may be terminated pursuant to the terms of the Lease, including, but not limited to, by notice of termination given by Landlord to Tenant at any time during Lease year 11 (a “Lease Year 11 Termination”) or by either party due to the default or bankruptcy of the other party in accordance with the termination provisions of the Lease. If the Lease is terminated by Landlord or Tenant pursuant to the terms of the Lease, the Management Agreement will also be terminated. The term of the License shall commence on the Commencement Date and shall expire upon the Termination Date, at which time Tenant’s rights under the License shall revert to Landlord.

Tenant shall pay to Landlord an up-front rental payment of $53.0 million (the “Up-Front Rent”) on the Commencement Date. Tenant shall also pay to Landlord aggregate fixed rent of $36.0 million (the “Fixed Rent”) for the Cemeteries in the following amounts:

 

Lease Years 1-5

   None

Lease Years 6-20

   $1,000,000 per Lease Year

Lease Years 21-25

   $1,200,000 per Lease Year

Lease Years 26-35

   $1,500,000 per Lease Year

Lease Years 36-60

   None

The Fixed Rent for Lease Years 6 through 11 (the “Deferred Fixed Rent”) shall be deferred. If Landlord terminates the Lease pursuant to a Lease Year 11 Termination or Tenant terminates the Lease as a result of a Landlord’s default prior to the end of Lease Year 11 (collectively, a “Covered Termination”), the Deferred Fixed Rent shall be forfeited by Landlord and shall be retained by Tenant. If the Lease is not terminated by a Covered Termination, the Deferred Fixed Rent shall become due and payable 30 days after the end of Lease Year 11.

If Landlord terminates the Lease pursuant to a Lease Year 11 Termination, Landlord must repay to Tenant all $53.0 million of the Up-Front Rent. If the Lease is terminated for cause at any time, Landlord must repay to Tenant the unamortized portion of the Up-Front Rent: (i) based on a 60 year amortization schedule if terminated by Tenant due to Landlord’s default and (ii) based on a 30 year amortization schedule if terminated by Landlord due to Tenant’s default.

Generally, 51% of gross revenues from any source received by Tenant on account of the Cemeteries but unrelated to customary operations of the Cemeteries less Tenant’s and Landlord’s reasonable costs and expenses applicable to such unrelated activity shall be paid to Landlord as additional rent. In addition, Tenant shall have the right to request from time to time that Landlord sell (to a party that is independent and not an affiliate of StoneMor or any party that is a Tenant) all or portions of undeveloped land at the leased Cemeteries. If Landlord approves the sale of such undeveloped land, Tenant shall pay to Landlord, as additional rent, 51% of the net proceeds of any such sale.

 

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 its 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 is as follows:

As of and for the three months ended March 31, 2014:

 

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

Revenues

                  

Sales

   $ 22,101       $ 7,410       $ 9,821       $ —         $ —        $ (10,458   $ 28,874   

Service and other

     11,626         10,604         10,923         —           —          (9,387     23,766   

Funeral home

     —           —           —           13,254         —          (1,507     11,747   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

     33,727         18,014         20,744         13,254         —          (21,352     64,387   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Costs and expenses

                  

Cost of sales

     4,792         1,678         2,777         —           —          (1,743     7,504   

Cemetery

     6,395         3,235         3,699         —           —          —          13,329   

Selling

     7,248         2,802         3,234         —           545        (2,640     11,189   

General and administrative

     4,096         1,492         2,057         —           —          —          7,645   

Corporate overhead

     —           —           —           —           7,456        —          7,456   

Depreciation and amortization

     633         236         521         736         242        —          2,368   

Funeral home

     —           —           —           9,504         —          (218     9,286   

Acquisition related costs, net of recoveries

     —           —           —           —           349        —          349   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total costs and expenses

     23,164         9,443         12,288         10,240         8,592        (4,601     59,126   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating profit

   $ 10,563       $ 8,571       $ 8,456       $ 3,014       $ (8,592   $ (16,751   $ 5,261   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 580,359       $ 318,937       $ 434,562       $ 135,819       $ 23,290      $ —        $ 1,492,967   

Amortization of cemetery property

   $ 1,251       $ 583       $ 1,223       $ —         $ —        $ (334   $ 2,723   

Long lived asset additions

   $ 1,564       $ 442       $ 1,041       $ 57       $ 52      $ —        $ 3,156   

Goodwill

   $ 6,174       $ —         $ 11,948       $ 30,615       $ —        $ —        $ 48,737   

 

As of and for the three months ended March 31, 2013:

 

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

Revenues

                  

Sales

   $ 21,870       $ 8,977       $ 9,760       $ —         $ —        $ (10,621   $ 29,986   

Service and other

     11,105         6,551         9,129         —           —          (8,577     18,208   

Funeral home

     —           —           —           12,827         —          (1,409     11,418   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

     32,975         15,528         18,889         12,827         —          (20,607     59,612   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Costs and expenses

                  

Cost of sales

     4,375         1,867         1,511         —           —          (1,463     6,290   

Cemetery

     5,972         3,233         3,580         —           —          —          12,785   

Selling

     7,213         3,159         3,091         —           372        (2,611     11,224   

General and administrative

     3,986         1,583         2,013         —           —          —          7,582   

Corporate overhead

     —           —           —           —           7,988        —          7,988   

Depreciation and amortization

     529         222         540         659         380        —          2,330   

Funeral home

     —           —           —           8,923         —          (187     8,736   

Acquisition related costs, net of recoveries

     —           —           —           —           1,283        —          1,283   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total costs and expenses

     22,075         10,064         10,735         9,582         10,023        (4,261     58,218   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating profit

   $ 10,900       $ 5,464       $ 8,154       $ 3,245       $ (10,023   $ (16,346   $ 1,394   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 538,893       $ 312,930       $ 414,580       $ 130,375       $ 23,931      $ —        $ 1,420,709   

Amortization of cemetery property

   $ 851       $ 622       $ 247       $ —         $ —        $ (34   $ 1,686   

Long lived asset additions

   $ 910       $ 877       $ 512       $ 8,654       $ 31      $ —        $ 10,984   

Goodwill

   $ 6,174       $ —         $ 11,948       $ 30,615       $ —        $ —        $ 48,737   

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 GAAP; 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 unaudited condensed 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 unaudited condensed 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 unaudited condensed consolidated financial statements reflect Deferred Cemetery Revenue, Net, and Deferred Selling and Obtaining Costs on the unaudited condensed consolidated 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, 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.

On the Company’s unaudited condensed consolidated balance sheet, current assets, long-term accounts receivable and current liabilities are recorded at amounts that approximate fair value.

 

The following table displays the Company’s assets measured at fair value as of March 31, 2014 and December 31, 2013.

As of March 31, 2014

Merchandise Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 59,227       $ —         $ 59,227   

Fixed maturities:

        

U.S. government and federal agency

     —           —           —     

U.S. state and local government agency

     —           —           —     

Corporate debt securities

     —           9,428         9,428   

Other debt securities

     —           5,842         5,842   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     —           15,270         15,270   
  

 

 

    

 

 

    

 

 

 

Mutual funds—debt securities

     113,592         —           113,592   

Mutual funds—equity securities—real estate sector

     51,210         —           51,210   

Mutual funds—equity securities—energy sector

     7,823         —           7,823   

Mutual funds—equity securities—MLP’s

     26,404         —           26,404   

Mutual funds—equity securities—other

     73,777         —           73,777   

Equity securities:

        

Preferred REIT’s

     —           —           —     

Master limited partnerships

     61,254         —           61,254   

Global equity securities

     28,025         —           28,025   

Other invested assets

     —           5,238         5,238   
  

 

 

    

 

 

    

 

 

 

Total

   $ 421,312       $ 20,508       $ 441,820   
  

 

 

    

 

 

    

 

 

 

Perpetual Care Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 20,381       $ —         $ 20,381   

Fixed maturities:

        

U.S. government and federal agency

     119         —           119   

U.S. state and local government agency

     —           —           —     

Corporate debt securities

     —           24,937         24,937   

Other debt securities

     —           371         371   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     119         25,308         25,427   
  

 

 

    

 

 

    

 

 

 

Mutual funds—debt securities

     116,933         —           116,933   

Mutual funds—equity securities—real estate sector

     42,673         —           42,673   

Mutual funds—equity securities—energy sector

     14,987         —           14,987   

Mutual funds—equity securities—MLP’s

     43,246         —           43,246   

Mutual funds—equity securities—other

     13,353         —           13,353   

Equity securities:

        

Preferred REIT’s

     —           —           —     

Master limited partnerships

     40,051         —           40,051   

Global equity securities

     924         —           924   

Other invested assets

     —           179         179   
  

 

 

    

 

 

    

 

 

 

Total

   $ 292,667       $ 25,487       $ 318,154   
  

 

 

    

 

 

    

 

 

 

 

As of December 31, 2013

Merchandise Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 46,518       $ —         $ 46,518   

Fixed maturities:

        

U.S. government and federal agency

     —           —           —     

U.S. state and local government agency

     —           —           —     

Corporate debt securities

     —           9,171         9,171   

Other debt securities

     —           7,324         7,324   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     —           16,495         16,495   
  

 

 

    

 

 

    

 

 

 

Mutual funds—debt securities

     111,333         —           111,333   

Mutual funds—equity securities—real estate sector

     49,103         —           49,103   

Mutual funds—equity securities—energy sector

     —           —           —     

Mutual funds—equity securities—MLP’s

     36,193         —           36,193   

Mutual funds—equity securities—other

     72,234         —           72,234   

Equity securities:

        

Preferred REIT’s

     —           —           —     

Master limited partnerships

     57,258         —           57,258   

Global equity securities

     28,437         —           28,437   

Other invested assets

     —           5,723         5,723   
  

 

 

    

 

 

    

 

 

 

Total

   $ 401,076       $ 22,218       $ 423,294   
  

 

 

    

 

 

    

 

 

 

Perpetual Care Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 16,686       $ —         $ 16,686   

Fixed maturities:

        

U.S. government and federal agency

     372         —           372   

U.S. state and local government agency

     —           —           —     

Corporate debt securities

     —           24,510         24,510   

Other debt securities

     —           371         371   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     372         24,881         25,253   
  

 

 

    

 

 

    

 

 

 

Mutual funds—debt securities

     116,013         —           116,013   

Mutual funds—equity securities—real estate sector

     40,763         —           40,763   

Mutual funds—equity securities—energy sector

     14,761         —           14,761   

Mutual funds—equity securities—MLP’s

     46,817         —           46,817   

Mutual funds—equity securities—other

     13,252         —           13,252   

Equity securities:

        

Preferred REIT’s

     —           —           —     

Master limited partnerships

     36,925         —           36,925   

Global equity securities

     919         —           919   

Other invested assets

     —           382         382   
  

 

 

    

 

 

    

 

 

 

Total

   $ 286,508       $ 25,263       $ 311,771   
  

 

 

    

 

 

    

 

 

 

 

Level 2 securities primarily consist of corporate and other fixed income debt securities. The Company obtains pricing information for these securities from an independent pricing vendor. The pricing vendor uses various pricing models for each asset class that are consistent with what other market participants would use. The inputs and assumptions to the pricing vendor’s model are derived from market observable sources including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and other market-related data. Since many fixed income securities do not trade on a daily basis, the pricing vendor uses available information as applicable such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. Thus, certain securities may not be priced using quoted prices, but rather determined from market observable information. These investments are included in Level 2. The Company reviews the information provided by the pricing vendor on a regular basis. In addition, the pricing vendor has an established process in place for the identification and resolution of potentially erroneous prices.

There were no level 3 assets.

SUBSEQUENT EVENTS
SUBSEQUENT EVENTS
16. SUBSEQUENT EVENTS

On April 2, 2014, StoneMor Operating LLC and certain other subsidiaries of StoneMor Partners L.P. (the “Company”) entered into two Asset Sale Agreements (collectively, the “Agreements”) with certain subsidiaries of Service Corporation International (“SCI”) to acquire 9 funeral homes, 12 cemeteries, 2 crematories and certain related assets in Central Florida, North Carolina, Southeastern Pennsylvania and Virginia.

In consideration for the transfer of the assets and in addition to the assumption of certain liabilities pursuant to the Agreements, the Company will pay an aggregate purchase price of $53.8 million, subject to certain adjustments. The closing of the transactions is subject to the satisfaction of certain closing conditions, including obtaining all necessary regulatory approvals, including the approval of the Federal Trade Commission (“FTC”), and financing for the purchase price.

SCI can terminate the Agreements if, among other conditions, (i) all regulatory approvals are not obtained by June 30, 2014, subject to certain extensions; or (ii) the Company does not obtain the necessary financing within 20 business days after all regulatory approvals are obtained. If the Agreements are terminated due to the Company’s inability to obtain the financing for the purchase price within 20 business days after all regulatory approvals are obtained, and the Company did not use its best efforts to obtain such financing, the Company will be obligated to pay a break-up fee of $1.0 million.

NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (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 March 31, 2014, the Partnership operated 278 cemeteries in 27 states and Puerto Rico, of which 260 are owned and 18 are operated under management or operating agreements. The Partnership also owned and operated 90 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 March 31, 2014 and for the three months ended March 31, 2014 and 2013 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, 2013 condensed consolidated balance sheet data was derived from audited financial statements included in the Company’s 2013 Annual Report on Form 10-K (“2013 Form 10-K”) and has been adjusted to include the effects of retrospective adjustments resulting from the Company’s 2013 first quarter acquisition, but does not include all disclosures required by GAAP, which are presented in the Company’s 2013 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 trusts and perpetual care trusts, 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, consisted of the following:

 

     As of  
     March 31,
2014
    December 31,
2013
 
     (in thousands)  

Customer receivables

   $ 177,349      $ 174,062   

Unearned finance income

     (19,807     (20,005

Allowance for contract cancellations

     (21,249     (20,275
  

 

 

   

 

 

 
     136,293        133,782   

Less: current portion, net of allowance

     55,809        55,415   
  

 

 

   

 

 

 

Long-term portion, net of allowance

   $ 80,484      $ 78,367   
  

 

 

   

 

 

 

Activity in the allowance for contract cancellations is as follows:

 

     For the three months ended March 31,  
     2014     2013  
     (in thousands)  

Balance—Beginning of period

   $ 20,275      $ 17,933   

Provision for cancellations

     5,031        4,986   

Charge-offs—net

     (4,057     (3,803
  

 

 

   

 

 

 

Balance—End of period

   $ 21,249      $ 19,116   
  

 

 

   

 

 

 

 

PROPERTY AND EQUIPMENT (Tables)

Major classes of property and equipment follow:

 

     As of  
     March 31,     December 31,  
     2014     2013  
     (in thousands)  

Building and improvements

   $ 92,301      $ 91,575   

Furniture and equipment

     45,172        44,828   
  

 

 

   

 

 

 
     137,473        136,403   

Less: accumulated depreciation

     (52,918     (51,396
  

 

 

   

 

 

 

Property and equipment—net

   $ 84,555      $ 85,007   
  

 

 

   

 

 

 

Cemetery property consists of the following:

 

     As of  
     March 31,      December 31,  
     2014      2013  
     (in thousands)  

Developed land

   $ 71,159       $ 72,458   

Undeveloped land

     164,335         163,997   

Mausoleum crypts and lawn crypts

     69,617         70,216   

Other land

     9,798         9,798   
  

 

 

    

 

 

 

Total

   $ 314,909       $ 316,469   
  

 

 

    

 

 

 

MERCHANDISE TRUSTS (Tables)

The cost and market value associated with the assets held in merchandise trusts at March 31, 2014 and December 31, 2013 were as follows:

 

As of March 31, 2014

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

Short-term investments

   $ 59,227       $ —         $ —        $ 59,227   

Fixed maturities:

          

U.S. Government and federal agency

     —           —           —          —     

U.S. State and local government agency

     —           —           —          —     

Corporate debt securities

     9,394         87         (53     9,428   

Other debt securities

     5,849         —           (7     5,842   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     15,243         87         (60     15,270   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds—debt securities

     118,629         844         (5,881     113,592   

Mutual funds—equity securities

     151,527         9,586         (1,899     159,214   

Equity securities

     82,168         8,132         (1,021     89,279   

Other invested assets

     5,414         —           (176     5,238   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total managed investments

   $ 432,208       $ 18,649       $ (9,037   $ 441,820   
  

 

 

    

 

 

    

 

 

   

 

 

 

West Virginia Trust Receivable

     8,033         —           —          8,033   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 440,241       $ 18,649       $ (9,037   $ 449,853   
  

 

 

    

 

 

    

 

 

   

 

 

 

As of December 31, 2013

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

Short-term investments

   $ 46,518       $ —         $ —        $ 46,518   

Fixed maturities:

          

U.S. Government and federal agency

     —           —           —          —     

U.S. State and local government agency

     —           —           —          —     

Corporate debt securities

     9,105         162         (96     9,171   

Other debt securities

     7,336         —           (12     7,324   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     16,441         162         (108     16,495   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds—debt securities

     117,761         729         (7,157     111,333   

Mutual funds—equity securities

     144,249         16,610         (3,329     157,530   

Equity securities

     81,520         5,267         (1,092     85,695   

Other invested assets

     5,809         —           (86     5,723   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total managed investments

   $ 412,298       $ 22,768       $ (11,772   $ 423,294   
  

 

 

    

 

 

    

 

 

   

 

 

 

West Virginia Trust Receivable

     8,262         —           —          8,262   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 420,560       $ 22,768       $ (11,772   $ 431,556   
  

 

 

    

 

 

    

 

 

   

 

 

 

The contractual maturities of debt securities as of March 31, 2014 were as follows:

 

As of March 31, 2014

   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

     —           —           —           —     

Corporate debt securities

     —           3,989         5,439         —     

Other debt securities

     650         5,192         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

   $ 650       $ 9,181       $ 5,439       $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 

An aging of unrealized losses on the Company’s investments in fixed maturities and equity securities at March 31, 2014 and December 31, 2013 is presented below:

 

     Less than 12 months      12 Months or more      Total  
     Fair      Unrealized      Fair      Unrealized      Fair      Unrealized  

As of March 31, 2014

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

     1,967         10         1,605         43         3,572         53   

Other debt securities

     4,469         7         —           —           4,469         7   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     6,436         17         1,605         43         8,041         60   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds—debt securities

     1,984         25         91,694         5,856         93,678         5,881   

Mutual funds—equity securities

     53,436         1,114         4,317         785         57,753         1,899   

Equity securities

     11,552         786         1,427         235         12,979         1,021   

Other invested assets

     2,125         176         —           —           2,125         176   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 75,533       $ 2,118       $ 99,043       $ 6,919       $ 174,576       $ 9,037   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     Less than 12 months      12 Months or more      Total  
     Fair      Unrealized      Fair      Unrealized      Fair      Unrealized  

As of December 31, 2013

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

     2,812         43         1,249         53         4,061         96   

Other debt securities

     5,329         8         995         4         6,324         12   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     8,141         51         2,244         57         10,385         108   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds—debt securities

     87,113         6,724         6,485         433         93,598         7,157   

Mutual funds—equity securities

     29,993         2,444         4,217         885         34,210         3,329   

Equity securities

     25,379         1,031         1,492         61         26,871         1,092   

Other invested assets

     2,266         86         —           —           2,266         86   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 152,892       $ 10,336       $ 14,438       $ 1,436       $ 167,330       $ 11,772   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

A reconciliation of the Company’s merchandise trust activities for the three months ended March 31, 2014 is presented below:

 

Fair
Value at
12/31/2013
     Contributions      Distributions     Interest/
Dividends
     Capital
Gain
Distributions
     Realized
Gain/
Loss
     Taxes     Fees     Unrealized
Change in
Fair Value
    Fair
Value at
3/31/2014
 
(in thousands)  
$ 431,556         16,699         (8,891     4,428         36         8,049         (69     (571     (1,384   $ 449,853   

The cost and market value associated with the assets held in perpetual care trusts at March 31, 2014 and December 31, 2013 were as follows:

 

            Gross      Gross        
            Unrealized      Unrealized     Fair  

As of March 31, 2014

   Cost      Gains      Losses     Value  
     (in thousands)  

Short-term investments

   $ 20,381       $ —         $ —        $ 20,381   

Fixed maturities:

          

U.S. Government and federal agency

     100         19         —          119   

U.S. State and local government agency

     —           —           —          —     

Corporate debt securities

     24,533         507         (103     24,937   

Other debt securities

     371         —           —          371   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     25,004         526         (103     25,427   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds—debt securities

     121,250         550         (4,867     116,933   

Mutual funds—equity securities

     93,132         21,270         (143     114,259   

Equity securities

     26,241         14,745         (11     40,975   

Other invested assets

     179         —           —          179   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 286,187       $ 37,091       $ (5,124   $ 318,154   
  

 

 

    

 

 

    

 

 

   

 

 

 
            Gross      Gross        
            Unrealized      Unrealized     Fair  

As of December 31, 2013

   Cost      Gains      Losses     Value  
     (in thousands)  

Short-term investments

   $ 16,686       $ —         $ —        $ 16,686   

Fixed maturities:

          

U.S. Government and federal agency

     302         70         —          372   

U.S. State and local government agency

     —           —           —          —     

Corporate debt securities

     24,378         340         (208     24,510   

Other debt securities

     371         —           —          371   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     25,051         410         (208     25,253   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds—debt securities

     121,493         466         (5,946     116,013   

Mutual funds—equity securities

     93,243         22,521         (171     115,593   

Equity securities

     25,580         12,283         (19     37,844   

Other invested assets

     172         210         —          382   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 282,225       $ 35,890       $ (6,344   $ 311,771   
  

 

 

    

 

 

    

 

 

   

 

 

 

The contractual maturities of debt securities as of March 31, 2014 were as follows:

 

     Less than      1 year through      6 years through      More than  

As of March 31, 2014

   1 year      5 years      10 years      10 years  
     (in thousands)  

U.S. Government and federal agency

   $ —         $ 119       $ —         $ —     

U.S. State and local government agency

     —           —           —           —     

Corporate debt securities

     140         12,463         12,333         1   

Other debt securities

     371         —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

   $ 511       $ 12,582       $ 12,333       $ 1   
  

 

 

    

 

 

    

 

 

    

 

 

 

An aging of unrealized losses on the Company’s investments in fixed maturities and equity securities at March 31, 2014 and December 31, 2013 held in perpetual care trusts is presented below:

 

     Less than 12 months      12 Months or more      Total  
     Fair      Unrealized      Fair      Unrealized      Fair      Unrealized  

As of March 31, 2014

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

     1,319         6         4,612         97         5,931         103   

Other debt securities

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     1,319         6         4,612         97         5,931         103   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds—debt securities

     1,705         41         108,678         4,826         110,383         4,867   

Mutual funds—equity securities

     1,213         143         —           —           1,213         143   

Equity securities

     175         11         —           —           175         11   

Other invested assets

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 4,412       $ 201       $ 113,290       $ 4,923       $ 117,702       $ 5,124   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     Less than 12 months      12 Months or more      Total  
     Fair      Unrealized      Fair      Unrealized      Fair      Unrealized  

As of December 31, 2013

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

     5,664         93         3,122         115         8,786         208   

Other debt securities

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     5,664         93         3,122         115         8,786         208   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds—debt securities

     93,473         4,781         16,367         1,165         109,840         5,946   

Mutual funds—equity securities

     1,185         171         —           —           1,185         171   

Equity securities

     513         19         —           —           513         19   

Other invested assets

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 100,835       $ 5,064       $ 19,489       $ 1,280       $ 120,324       $ 6,344   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

A reconciliation of the Company’s perpetual care trust activities for the three months ended March 31, 2014 is presented below:

 

Fair
Value at
12/31/2013
     Contributions      Distributions     Interest/
Dividends
     Capital
Gain
Distributions
     Realized
Gain/
Loss
     Taxes     Fees     Unrealized
Change in
Fair Value
     Fair
Value at
3/31/2014
 
(in thousands)  
$ 311,771         4,352         (4,096     4,082         —           106         (64     (418     2,421       $ 318,154   

GOODWILL AND INTANGIBLE ASSETS (Tables)

A rollforward of goodwill by reportable segment is as follows:

 

     Cemeteries      Funeral
Homes
     Total  
     Southeast      Northeast      West        
     (in thousands)  

Balance as of December 31, 2013

   $ 6,174       $ —         $ 11,948       $ 30,615       $ 48,737   

Goodwill acquired from acquisitions during the three months ended March 31, 2014

     —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of March 31, 2014

   $ 6,174       $ —         $ 11,948       $ 30,615       $ 48,737   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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

 

     As of      As of  
     March 31, 2014      December 31, 2013  
     Gross Carrying      Accumulated     Net Intangible      Gross Carrying      Accumulated     Net Intangible  
     Amount      Amortization     Asset      Amount      Amortization     Asset  
     (in thousands)  

Amortized intangible assets:

               

Underlying contract value

   $ 6,239       $ (741   $ 5,498       $ 6,239       $ (702   $ 5,537   

Non-compete agreements

     7,950         (4,339     3,611         7,950         (4,003     3,947   

Other intangible assets

     269         (102     167         269         (98     171   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total intangible assets

   $ 14,458       $ (5,182   $ 9,276       $ 14,458       $ (4,803   $ 9,655   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

LONG-TERM DEBT (Tables)
Outstanding Debt

The Company had the following outstanding debt:

 

     As of  
     March 31,      December 31,  
     2014      2013  
     (in thousands)  

7.875% Senior Notes, due 2021

   $ 175,000       $ 175,000   

Revolving Credit Facility, due January 2017

     77,402         114,002   

Notes payable—acquisition debt

     985         1,571   

Notes payable—acquisition non-competes

     3,443         3,945   

Insurance and vehicle financing

     743         1,529   
  

 

 

    

 

 

 

Total

     257,573         296,047   

Less current portion

     1,555         2,916   

Less unamortized bond and note payable discounts

     3,964         4,115   
  

 

 

    

 

 

 

Long-term portion

   $ 252,054       $ 289,016   
  

 

 

    

 

 

 

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

At March 31, 2014 and December 31, 2013, deferred cemetery revenues, net, consisted of the following:

 

     As of  
     March 31,     December 31,  
     2014     2013  
     (in thousands)  

Deferred cemetery revenue

   $ 417,298      $ 403,250   

Deferred merchandise trust revenue

     97,536        88,730   

Deferred merchandise trust unrealized gains (losses)

     9,612        10,996   

Deferred pre-acquisition margin

     130,037        131,274   

Deferred cost of goods sold

     (56,324     (54,257
  

 

 

   

 

 

 

Deferred cemetery revenues, net

   $ 598,159      $ 579,993   
  

 

 

   

 

 

 

Deferred selling and obtaining costs

   $ 90,801      $ 87,998   

COMMITMENTS AND CONTINGENCIES (Tables)
Operating Leases Future Payments

At March 31, 2014, operating leases will result in future payments in the following approximate amounts from January 1, 2015 and beyond:

 

     (in thousands)  

2015

   $ 1,203   

2016

     1,054   

2017

     965   

2018

     899   

2019

     883   

Thereafter

     1,215   
  

 

 

 

Total

   $ 6,219   
  

 

 

 

 

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 months ended March 31, 2014 and 2013 are summarized in the table below:

 

     Three months ended  
     March 31,  
     2014      2013  
     (in thousands)  

Unit appreciation rights

   $ 19       $ 139   

Restricted phantom units

     252         191   
  

 

 

    

 

 

 

Total unit-based compensation expense

   $ 271       $ 330   
  

 

 

    

 

 

 

ACQUISITIONS (Tables)

If the acquisitions from 2014 and 2013 had been consummated at the beginning of the comparable prior annual reporting period, on a pro forma basis, for the three months ended March 31, 2014 and 2013, consolidated revenues, consolidated net income (loss) and net income (loss) per limited partner unit (basic and diluted) would have been as follows:

 

     As of March 31,  
     2014     2013  
     (in thousands)  

Revenue

   $ 64,398      $ 60,111   

Net income (loss)

     (2     (1,655

Net income (loss) per limited partner unit (basic and diluted)

   $ —        $ (.08

Tenant shall also pay to Landlord aggregate fixed rent of $36.0 million (the “Fixed Rent”) for the Cemeteries in the following amounts:

 

Lease Years 1-5

   None

Lease Years 6-20

   $1,000,000 per Lease Year

Lease Years 21-25

   $1,200,000 per Lease Year

Lease Years 26-35

   $1,500,000 per Lease Year

Lease Years 36-60

   None

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

 

     Preliminary  
     Assessment  
     (in thousands)  

Assets:

  

Accounts receivable

   $ 47   

Cemetery property

     470   

Property and equipment

     140   

Merchandise trusts, restricted, at fair value

     2,607   

Perpetual care trusts, restricted, at fair value

     691   
  

 

 

 

Total assets

     3,955   
  

 

 

 

Liabilities:

  

Deferred margin

     1,035   

Merchandise liabilities

     956   

Deferred tax liability

     641   

Perpetual care trust corpus

     691   

Other liabilities

     20   
  

 

 

 

Total liabilities

     3,343   
  

 

 

 

Fair value of net assets acquired

     612   
  

 

 

 

Consideration paid

     200   
  

 

 

 

Gain on bargain purchase

   $ 412   
  

 

 

 

The table below reflects the Company’s final assessment of the fair value of net assets acquired and displays the adjustments made to the revised values reported at December 31, 2013. The Company obtained additional information in the first quarter of 2014 and has retrospectively adjusted these values as noted below. The resulting goodwill is recorded in the Company’s Funeral Homes operating segment.

 

     Revised            Final  
     Assessment      Adjustments     Assessment  
     (in thousands)  

Assets:

       

Accounts receivable

   $ 695       $ 311      $ 1,006   

Property and equipment

     8,315         —          8,315   

Merchandise trusts, restricted, at fair value

     4,853         —          4,853   

Non-compete agreements

     1,927         —          1,927   
  

 

 

    

 

 

   

 

 

 

Total assets

     15,790         311        16,101   
  

 

 

    

 

 

   

 

 

 

Liabilities:

       

Deferred margin

     2,419         (1,592     827   

Merchandise liabilities

     2,233         2,606        4,839   

Other liabilities

     164         —          164   
  

 

 

    

 

 

   

 

 

 

Total liabilities

     4,816         1,014        5,830   
  

 

 

    

 

 

   

 

 

 

Fair value of net assets acquired

     10,974         (703     10,271   
  

 

 

    

 

 

   

 

 

 

Consideration paid—cash

     9,100         —          9,100   

Consideration paid—units

     3,592         —          3,592   

Fair value of note payable

     3,000         —          3,000   

Fair value of debt assumed for non-compete agreement

     924         —          924   
  

 

 

    

 

 

   

 

 

 

Total consideration paid

     16,616         —          16,616   
  

 

 

    

 

 

   

 

 

 

Goodwill from purchase

   $ 5,642       $ 703      $ 6,345   
  

 

 

    

 

 

   

 

 

 

SEGMENT INFORMATION (Tables)
Segment Information

Segment information is as follows:

As of and for the three months ended March 31, 2014:

 

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

Revenues

                  

Sales

   $ 22,101       $ 7,410       $ 9,821       $ —         $ —        $ (10,458   $ 28,874   

Service and other

     11,626         10,604         10,923         —           —          (9,387     23,766   

Funeral home

     —           —           —           13,254         —          (1,507     11,747   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

     33,727         18,014         20,744         13,254         —          (21,352     64,387   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Costs and expenses

                  

Cost of sales

     4,792         1,678         2,777         —           —          (1,743     7,504   

Cemetery

     6,395         3,235         3,699         —           —          —          13,329   

Selling

     7,248         2,802         3,234         —           545        (2,640     11,189   

General and administrative

     4,096         1,492         2,057         —           —          —          7,645   

Corporate overhead

     —           —           —           —           7,456        —          7,456   

Depreciation and amortization

     633         236         521         736         242        —          2,368   

Funeral home

     —           —           —           9,504         —          (218     9,286   

Acquisition related costs, net of recoveries

     —           —           —           —           349        —          349   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total costs and expenses

     23,164         9,443         12,288         10,240         8,592        (4,601     59,126   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating profit

   $ 10,563       $ 8,571       $ 8,456       $ 3,014       $ (8,592   $ (16,751   $ 5,261   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 580,359       $ 318,937       $ 434,562       $ 135,819       $ 23,290      $ —        $ 1,492,967   

Amortization of cemetery property

   $ 1,251       $ 583       $ 1,223       $ —         $ —        $ (334   $ 2,723   

Long lived asset additions

   $ 1,564       $ 442       $ 1,041       $ 57       $ 52      $ —        $ 3,156   

Goodwill

   $ 6,174       $ —         $ 11,948       $ 30,615       $ —        $ —        $ 48,737   

 

As of and for the three months ended March 31, 2013:

 

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

Revenues

                  

Sales

   $ 21,870       $ 8,977       $ 9,760       $ —         $ —        $ (10,621   $ 29,986   

Service and other

     11,105         6,551         9,129         —           —          (8,577     18,208   

Funeral home

     —           —           —           12,827         —          (1,409     11,418   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

     32,975         15,528         18,889         12,827         —          (20,607     59,612   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Costs and expenses

                  

Cost of sales

     4,375         1,867         1,511         —           —          (1,463     6,290   

Cemetery

     5,972         3,233         3,580         —           —          —          12,785   

Selling

     7,213         3,159         3,091         —           372        (2,611     11,224   

General and administrative

     3,986         1,583         2,013         —           —          —          7,582   

Corporate overhead

     —           —           —           —           7,988        —          7,988   

Depreciation and amortization

     529         222         540         659         380        —          2,330   

Funeral home

     —           —           —           8,923         —          (187     8,736   

Acquisition related costs, net of recoveries

     —           —           —           —           1,283        —          1,283   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total costs and expenses

     22,075         10,064         10,735         9,582         10,023        (4,261     58,218   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating profit

   $ 10,900       $ 5,464       $ 8,154       $ 3,245       $ (10,023   $ (16,346   $ 1,394   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 538,893       $ 312,930       $ 414,580       $ 130,375       $ 23,931      $ —        $ 1,420,709   

Amortization of cemetery property

   $ 851       $ 622       $ 247       $ —         $ —        $ (34   $ 1,686   

Long lived asset additions

   $ 910       $ 877       $ 512       $ 8,654       $ 31      $ —        $ 10,984   

Goodwill

   $ 6,174       $ —         $ 11,948       $ 30,615       $ —        $ —        $ 48,737   

FAIR VALUE MEASUREMENTS (Tables)
Assets and Liabilities Measured at Fair Value

The following table displays the Company’s assets measured at fair value as of March 31, 2014 and December 31, 2013.

As of March 31, 2014

Merchandise Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 59,227       $ —         $ 59,227   

Fixed maturities:

        

U.S. government and federal agency

     —           —           —     

U.S. state and local government agency

     —           —           —     

Corporate debt securities

     —           9,428         9,428   

Other debt securities

     —           5,842         5,842   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     —           15,270         15,270   
  

 

 

    

 

 

    

 

 

 

Mutual funds—debt securities

     113,592         —           113,592   

Mutual funds—equity securities—real estate sector

     51,210         —           51,210   

Mutual funds—equity securities—energy sector

     7,823         —           7,823   

Mutual funds—equity securities—MLP’s

     26,404         —           26,404   

Mutual funds—equity securities—other

     73,777         —           73,777   

Equity securities:

        

Preferred REIT’s

     —           —           —     

Master limited partnerships

     61,254         —           61,254   

Global equity securities

     28,025         —           28,025   

Other invested assets

     —           5,238         5,238   
  

 

 

    

 

 

    

 

 

 

Total

   $ 421,312       $ 20,508       $ 441,820   
  

 

 

    

 

 

    

 

 

 

Perpetual Care Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 20,381       $ —         $ 20,381   

Fixed maturities:

        

U.S. government and federal agency

     119         —           119   

U.S. state and local government agency

     —           —           —     

Corporate debt securities

     —           24,937         24,937   

Other debt securities

     —           371         371   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     119         25,308         25,427   
  

 

 

    

 

 

    

 

 

 

Mutual funds—debt securities

     116,933         —           116,933   

Mutual funds—equity securities—real estate sector

     42,673         —           42,673   

Mutual funds—equity securities—energy sector

     14,987         —           14,987   

Mutual funds—equity securities—MLP’s

     43,246         —           43,246   

Mutual funds—equity securities—other

     13,353         —           13,353   

Equity securities:

        

Preferred REIT’s

     —           —           —     

Master limited partnerships

     40,051         —           40,051   

Global equity securities

     924         —           924   

Other invested assets

     —           179         179   
  

 

 

    

 

 

    

 

 

 

Total

   $ 292,667       $ 25,487       $ 318,154   
  

 

 

    

 

 

    

 

 

 

 

As of December 31, 2013

Merchandise Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 46,518       $ —         $ 46,518   

Fixed maturities:

        

U.S. government and federal agency

     —           —           —     

U.S. state and local government agency

     —           —           —     

Corporate debt securities

     —           9,171         9,171   

Other debt securities

     —           7,324         7,324   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     —           16,495         16,495   
  

 

 

    

 

 

    

 

 

 

Mutual funds—debt securities

     111,333         —           111,333   

Mutual funds—equity securities—real estate sector

     49,103         —           49,103   

Mutual funds—equity securities—energy sector

     —           —           —     

Mutual funds—equity securities—MLP’s

     36,193         —           36,193   

Mutual funds—equity securities—other

     72,234         —           72,234   

Equity securities:

        

Preferred REIT’s

     —           —           —     

Master limited partnerships

     57,258         —           57,258   

Global equity securities

     28,437         —           28,437   

Other invested assets

     —           5,723         5,723   
  

 

 

    

 

 

    

 

 

 

Total

   $ 401,076       $ 22,218       $ 423,294   
  

 

 

    

 

 

    

 

 

 

Perpetual Care Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 16,686       $ —         $ 16,686   

Fixed maturities:

        

U.S. government and federal agency

     372         —           372   

U.S. state and local government agency

     —           —           —     

Corporate debt securities

     —           24,510         24,510   

Other debt securities

     —           371         371   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     372         24,881         25,253   
  

 

 

    

 

 

    

 

 

 

Mutual funds—debt securities

     116,013         —           116,013   

Mutual funds—equity securities—real estate sector

     40,763         —           40,763   

Mutual funds—equity securities—energy sector

     14,761         —           14,761   

Mutual funds—equity securities—MLP’s

     46,817         —           46,817   

Mutual funds—equity securities—other

     13,252         —           13,252   

Equity securities:

        

Preferred REIT’s

     —           —           —     

Master limited partnerships

     36,925         —           36,925   

Global equity securities

     919         —           919   

Other invested assets

     —           382         382   
  

 

 

    

 

 

    

 

 

 

Total

   $ 286,508       $ 25,263       $ 311,771   
  

 

 

    

 

 

    

 

 

 

 

Nature of Operations Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail)
Mar. 31, 2014
State
Property
US and Puerto Rico |
Cemetery
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
278 
Number of states
27 
US and Puerto Rico |
Funeral Home
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
90 
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
260 
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
Managed Properties |
US and Puerto Rico |
Cemetery
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
18 
Long-Term Accounts Receivable Net (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Customer receivables
$ 177,349 
$ 174,062 
Unearned finance income
(19,807)
(20,005)
Allowance for contract cancellations
(21,249)
(20,275)
Accounts Receivable, Net, Total
136,293 
133,782 
Less: current portion, net of allowance
55,809 
55,415 
Long-term portion, net of allowance
$ 80,484 
$ 78,367 
Activity in Allowance for Contract Cancellations (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Mar. 31, 2014
Contract Cancellations
Mar. 31, 2013
Contract Cancellations
Valuation and Qualifying Accounts Disclosure [Line Items]
 
 
 
 
Balance - Beginning of period
$ 21,249 
$ 20,275 
$ 20,275 
$ 17,933 
Provision for cancellations
 
 
5,031 
4,986 
Charge-offs - net
 
 
(4,057)
(3,803)
Balance - End of period
$ 21,249 
$ 20,275 
$ 21,249 
$ 19,116 
Cemetery Property (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
$ 314,909 
$ 316,469 
Developed land
 
 
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
71,159 
72,458 
Undeveloped land
 
 
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
164,335 
163,997 
Mausoleum crypts and lawn crypts
 
 
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
69,617 
70,216 
Other Land
 
 
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
$ 9,798 
$ 9,798 
Major Classes of Property and Equipment (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Property, Plant and Equipment [Line Items]
 
 
Building and improvements
$ 92,301 
$ 91,575 
Furniture and equipment
45,172 
44,828 
Property, Plant and Equipment, Gross, Total
137,473 
136,403 
Less: accumulated depreciation
(52,918)
(51,396)
Property and equipment - net
$ 84,555 
$ 85,007 
Property and Equipment - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Depreciation expense
$ 2.0 
$ 1.7 
Merchandise Trusts - Additional Information (Detail) (Variable Interest Entity, Primary Beneficiary, Merchandise Trusts, USD $)
3 Months Ended 3 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Mar. 31, 2013
Other Than Temporarily Impaired Securities
Property
Mar. 31, 2014
West Virginia Trust Receivable
Dec. 31, 2013
West Virginia Trust Receivable
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
 
Trust assets, fair value
$ 449,853,000 
$ 431,556,000 
$ 700,000 
$ 8,033,000 
$ 8,262,000 
Net deposits into the trust
7,800,000 
 
 
 
 
Purchases of securities available for sale included in trust investments
155,300,000 
 
 
 
 
Sales of securities available for sale included in trust investments
154,000,000 
 
 
 
 
Contributions of assets
2,600,000 
 
 
 
 
Number of securities resulting impairment
 
 
 
 
Trust assets, cost
440,241,000 
420,560,000 
1,400,000 
8,033,000 
8,262,000 
Other than temporary impairments loss
 
 
$ 700,000 
 
 
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
Mar. 31, 2014
Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
$ 440,241 
$ 420,560 
Gross Unrealized Gains
18,649 
22,768 
Gross Unrealized Losses
(9,037)
(11,772)
Fair Value
449,853 
431,556 
Short-term investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
59,227 
46,518 
Fair Value
59,227 
46,518 
Fixed maturities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
15,243 
16,441 
Gross Unrealized Gains
87 
162 
Gross Unrealized Losses
(60)
(108)
Fair Value
15,270 
16,495 
Fixed maturities |
Corporate debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
9,394 
9,105 
Gross Unrealized Gains
87 
162 
Gross Unrealized Losses
(53)
(96)
Fair Value
9,428 
9,171 
Fixed maturities |
Other debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
5,849 
7,336 
Gross Unrealized Losses
(7)
(12)
Fair Value
5,842 
7,324 
Mutual funds - debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
118,629 
117,761 
Gross Unrealized Gains
844 
729 
Gross Unrealized Losses
(5,881)
(7,157)
Fair Value
113,592 
111,333 
Mutual funds - equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
151,527 
144,249 
Gross Unrealized Gains
9,586 
16,610 
Gross Unrealized Losses
(1,899)
(3,329)
Fair Value
159,214 
157,530 
Equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
82,168 
81,520 
Gross Unrealized Gains
8,132 
5,267 
Gross Unrealized Losses
(1,021)
(1,092)
Fair Value
89,279 
85,695 
Other invested assets
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
5,414 
5,809 
Gross Unrealized Losses
(176)
(86)
Fair Value
5,238 
5,723 
Total managed investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
432,208 
412,298 
Gross Unrealized Gains
18,649 
22,768 
Gross Unrealized Losses
(9,037)
(11,772)
Fair Value
441,820 
423,294 
West Virginia Trust Receivable
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
8,033 
8,262 
Fair Value
$ 8,033 
$ 8,262 
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
Mar. 31, 2014
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
$ 650 
1 year through 5 years
9,181 
6 years through 10 years
5,439 
More than 10 years
   
U.S. Government and federal agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
More than 10 years
   
U.S. State and local government agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
More than 10 years
   
Corporate debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
1 year through 5 years
3,989 
6 years through 10 years
5,439 
More than 10 years
   
Other debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
650 
1 year through 5 years
5,192 
More than 10 years
   
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
Mar. 31, 2014
Dec. 31, 2013
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
$ 75,533 
$ 152,892 
Less than 12 months Unrealized Losses
2,118 
10,336 
12 Months or more Fair Value
99,043 
14,438 
12 Months or more Unrealized Losses
6,919 
1,436 
Total Fair Value
174,576 
167,330 
Total Unrealized Losses
9,037 
11,772 
Fixed maturities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
6,436 
8,141 
Less than 12 months Unrealized Losses
17 
51 
12 Months or more Fair Value
1,605 
2,244 
12 Months or more Unrealized Losses
43 
57 
Total Fair Value
8,041 
10,385 
Total Unrealized Losses
60 
108 
Fixed maturities |
Corporate debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
1,967 
2,812 
Less than 12 months Unrealized Losses
10 
43 
12 Months or more Fair Value
1,605 
1,249 
12 Months or more Unrealized Losses
43 
53 
Total Fair Value
3,572 
4,061 
Total Unrealized Losses
53 
96 
Fixed maturities |
Other debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
4,469 
5,329 
Less than 12 months Unrealized Losses
12 Months or more Fair Value
 
995 
12 Months or more Unrealized Losses
 
Total Fair Value
4,469 
6,324 
Total Unrealized Losses
12 
Mutual funds - debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
1,984 
87,113 
Less than 12 months Unrealized Losses
25 
6,724 
12 Months or more Fair Value
91,694 
6,485 
12 Months or more Unrealized Losses
5,856 
433 
Total Fair Value
93,678 
93,598 
Total Unrealized Losses
5,881 
7,157 
Mutual funds - equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
53,436 
29,993 
Less than 12 months Unrealized Losses
1,114 
2,444 
12 Months or more Fair Value
4,317 
4,217 
12 Months or more Unrealized Losses
785 
885 
Total Fair Value
57,753 
34,210 
Total Unrealized Losses
1,899 
3,329 
Equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
11,552 
25,379 
Less than 12 months Unrealized Losses
786 
1,031 
12 Months or more Fair Value
1,427 
1,492 
12 Months or more Unrealized Losses
235 
61 
Total Fair Value
12,979 
26,871 
Total Unrealized Losses
1,021 
1,092 
Other invested assets
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
2,125 
2,266 
Less than 12 months Unrealized Losses
176 
86 
Total Fair Value
2,125 
2,266 
Total Unrealized Losses
$ 176 
$ 86 
Reconciliation of Merchandise Trust Activities (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Mar. 31, 2014
Variable Interest Entity, Primary Beneficiary
Merchandise Trusts
Schedule of Available-for-sale Securities [Line Items]
 
 
 
Fair Value
$ 449,853 
$ 431,556 
$ 431,556 
Contributions
 
 
16,699 
Distributions
 
 
(8,891)
Interest/ Dividends
 
 
4,428 
Capital Gain Distributions
 
 
36 
Realized Gain/ Loss
 
 
8,049 
Taxes
 
 
(69)
Fees
 
 
(571)
Unrealized Change in Fair Value
 
 
(1,384)
Fair Value
$ 449,853 
$ 431,556 
$ 449,853 
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
Mar. 31, 2014
Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
$ 286,187 
$ 282,225 
Gross Unrealized Gains
37,091 
35,890 
Gross Unrealized Losses
(5,124)
(6,344)
Fair Value
318,154 
311,771 
Short-term investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
20,381 
16,686 
Fair Value
20,381 
16,686 
Fixed maturities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
25,004 
25,051 
Gross Unrealized Gains
526 
410 
Gross Unrealized Losses
(103)
(208)
Fair Value
25,427 
25,253 
Fixed maturities |
U.S. Government and federal agency
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
100 
302 
Gross Unrealized Gains
19 
70 
Fair Value
119 
372 
Fixed maturities |
Corporate debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
24,533 
24,378 
Gross Unrealized Gains
507 
340 
Gross Unrealized Losses
(103)
(208)
Fair Value
24,937 
24,510 
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
121,250 
121,493 
Gross Unrealized Gains
550 
466 
Gross Unrealized Losses
(4,867)
(5,946)
Fair Value
116,933 
116,013 
Mutual funds - equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
93,132 
93,243 
Gross Unrealized Gains
21,270 
22,521 
Gross Unrealized Losses
(143)
(171)
Fair Value
114,259 
115,593 
Equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
26,241 
25,580 
Gross Unrealized Gains
14,745 
12,283 
Gross Unrealized Losses
(11)
(19)
Fair Value
40,975 
37,844 
Other invested assets
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
179 
172 
Gross Unrealized Gains
 
210 
Fair Value
$ 179 
$ 382 
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
Mar. 31, 2014
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
$ 511 
1 year through 5 years
12,582 
6 years through 10 years
12,333 
More than 10 years
U.S. Government and federal agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
1 year through 5 years
119 
Corporate debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
140 
1 year through 5 years
12,463 
6 years through 10 years
12,333 
More than 10 years
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
Mar. 31, 2014
Dec. 31, 2013
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
$ 4,412 
$ 100,835 
Less than 12 months Unrealized Losses
201 
5,064 
12 Months or more Fair Value
113,290 
19,489 
12 Months or more Unrealized Losses
4,923 
1,280 
Total Fair Value
117,702 
120,324 
Total Unrealized Losses
5,124 
6,344 
Fixed maturities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
1,319 
5,664 
Less than 12 months Unrealized Losses
93 
12 Months or more Fair Value
4,612 
3,122 
12 Months or more Unrealized Losses
97 
115 
Total Fair Value
5,931 
8,786 
Total Unrealized Losses
103 
208 
Fixed maturities |
Corporate debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
1,319 
5,664 
Less than 12 months Unrealized Losses
93 
12 Months or more Fair Value
4,612 
3,122 
12 Months or more Unrealized Losses
97 
115 
Total Fair Value
5,931 
8,786 
Total Unrealized Losses
103 
208 
Mutual funds - debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
1,705 
93,473 
Less than 12 months Unrealized Losses
41 
4,781 
12 Months or more Fair Value
108,678 
16,367 
12 Months or more Unrealized Losses
4,826 
1,165 
Total Fair Value
110,383 
109,840 
Total Unrealized Losses
4,867 
5,946 
Mutual funds - equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
1,213 
1,185 
Less than 12 months Unrealized Losses
143 
171 
Total Fair Value
1,213 
1,185 
Total Unrealized Losses
143 
171 
Equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
175 
513 
Less than 12 months Unrealized Losses
11 
19 
Total Fair Value
175 
513 
Total Unrealized Losses
$ 11 
$ 19 
Reconciliation of Perpetual Care Trust Activities (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Mar. 31, 2014
Variable Interest Entity, Primary Beneficiary
Perpetual care trusts
Schedule of Available-for-sale Securities [Line Items]
 
 
 
Fair Value
$ 318,154 
$ 311,771 
$ 311,771 
Contributions
 
 
4,352 
Distributions
 
 
(4,096)
Interest/ Dividends
 
 
4,082 
Capital Gain Distributions
 
 
   
Realized Gain/ Loss
 
 
106 
Taxes
 
 
(64)
Fees
 
 
(418)
Unrealized Change in Fair Value
 
 
2,421 
Fair Value
$ 318,154 
$ 311,771 
$ 318,154 
Perpetual Care Trusts - Additional Information (Detail) (Variable Interest Entity, Primary Beneficiary, Perpetual care trusts, USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Variable Interest Entity, Primary Beneficiary |
Perpetual care trusts
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Net contribution in to the trust
$ 0.3 
 
Purchases of securities available for sale included in trust investments
15.9 
 
Sales of securities available for sale included in trust investments
14.5 
 
Contributions of assets
0.7 
 
Other than temporary impairments loss
$ 0 
$ 0 
Goodwill by Reportable Segment (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Goodwill [Line Items]
 
 
Goodwill, Beginning Balance
$ 48,737 
$ 48,737 
Goodwill acquired from acquisitions
   
 
Goodwill, Ending Balance
48,737 
48,737 
Cemetery Operations South East
 
 
Goodwill [Line Items]
 
 
Goodwill, Beginning Balance
6,174 
6,174 
Goodwill acquired from acquisitions
   
 
Goodwill, Ending Balance
6,174 
6,174 
Cemetery Operations North East
 
 
Goodwill [Line Items]
 
 
Goodwill acquired from acquisitions
   
 
Cemetery Operations West
 
 
Goodwill [Line Items]
 
 
Goodwill, Beginning Balance
11,948 
11,948 
Goodwill acquired from acquisitions
   
 
Goodwill, Ending Balance
11,948 
11,948 
Funeral Home
 
 
Goodwill [Line Items]
 
 
Goodwill, Beginning Balance
30,615 
30,615 
Goodwill acquired from acquisitions
   
 
Goodwill, Ending Balance
$ 30,615 
$ 30,615 
Major Classes of Intangible Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
$ 14,458 
$ 14,458 
Accumulated Amortization
(5,182)
(4,803)
Net Intangible Asset
9,276 
9,655 
Underlying contract value
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
6,239 
6,239 
Accumulated Amortization
(741)
(702)
Net Intangible Asset
5,498 
5,537 
Noncompete Agreements
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
7,950 
7,950 
Accumulated Amortization
(4,339)
(4,003)
Net Intangible Asset
3,611 
3,947 
Other intangible assets
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
269 
269 
Accumulated Amortization
(102)
(98)
Net Intangible Asset
$ 167 
$ 171 
Outstanding Debt (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
Long-Term Debt
$ 257,573 
$ 296,047 
Less current portion
1,555 
2,916 
Less unamortized bond and note payable discounts
3,964 
4,115 
Long-term portion
252,054 
289,016 
7.875% senior notes, due 2021
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
175,000 
175,000 
Revolving Credit Facility, due January 2017
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
77,402 
114,002 
Notes Payable, other Payables |
Acquisition debt
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
985 
1,571 
Notes Payable, other Payables |
acquisition non-competes
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
3,443 
3,945 
Insurance and vehicle financing
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
$ 743 
$ 1,529 
Outstanding Debt (Parenthetical) (Detail)
3 Months Ended 12 Months Ended
Mar. 31, 2014
Dec. 31, 2013
May 28, 2013
7.875% senior notes, due 2021
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-Term Debt, interest rate
7.875% 
7.875% 
7.875% 
Long-Term Debt, maturity date, year
2021 
2021 
 
Revolving Credit Facility, due January 2017
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-Term Debt, maturity date
2017-01 
2017-01 
 
Long Term Debt - Additional Information (Detail) (USD $)
1 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 1 Months Ended
Feb. 28, 2013
Mar. 31, 2014
Dec. 31, 2013
Mar. 31, 2014
Third Amended and Restated Credit Agreement
Third Amendment
Mar. 31, 2014
Third Amended and Restated Credit Agreement
Third Amendment
Minimum
Mar. 31, 2014
Third Amended and Restated Credit Agreement
Third Amendment
through December 31, 2013
Mar. 31, 2014
Third Amended and Restated Credit Agreement
Third Amendment
at March 31, 2014
Mar. 31, 2014
Third Amended and Restated Credit Agreement
Third Amendment
Period ending on June 30, 2014 and thereafter
Mar. 31, 2014
Third Amended and Restated Credit Agreement
Series of Individually Immaterial Business Acquisitions
Third Amendment
Mar. 31, 2014
Third Amended and Restated Credit Agreement
Total Aggregate Consideration
Third Amendment
Mar. 31, 2014
Line of Credit
Mar. 31, 2014
Line of Credit
Minimum
Mar. 31, 2014
Line of Credit
Minimum
Second Amendment
Mar. 31, 2014
Line of Credit
Maximum
Mar. 31, 2014
Line of Credit
Maximum
Second Amendment
Mar. 31, 2014
Line of Credit
Base Rate
Mar. 31, 2014
7.875% senior notes, due 2021
Dec. 31, 2013
7.875% senior notes, due 2021
May 28, 2013
7.875% senior notes, due 2021
May 31, 2013
10.25% Senior Notes, due 2017
May 28, 2013
10.25% Senior Notes, due 2017
Mar. 31, 2014
10.25% Senior Notes, due 2017
Debt Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-Term Debt, principal amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 175,000,000 
 
 
$ 150,000,000 
Long-Term Debt, interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.875% 
7.875% 
7.875% 
 
10.25% 
 
Long-Term Debt, Issued price per $100
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
97.832% 
 
Net proceeds from issuance of senior notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
171,200,000 
 
 
Long-Term Debt, discount
 
3,964,000 
4,115,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,800,000 
 
Long-Term Debt, debt issuance costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,600,000 
 
 
Debt premium percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.06% 
Long-Term Debt, fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
182,100,000 
Credit facility, interest rate margin on base rate
 
 
 
3.00% 
 
 
 
 
 
 
 
1.25% 
 
3.00% 
 
 
 
 
 
 
 
 
Credit facility, interest rate margin on Eurodollar rate
 
 
 
4.00% 
 
 
 
 
 
 
 
2.25% 
 
4.00% 
 
 
 
 
 
 
 
 
Credit facility, unused commitment fee rate
 
 
 
0.80% 
 
 
 
 
 
 
 
 
0.375% 
 
0.80% 
 
 
 
 
 
 
 
Leverage ratio
 
 
 
375.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of aggregate consideration company may pay without lender approval for permitted acquisitions
 
 
 
 
 
 
 
 
10,000,000 
50,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Covenant, value of permitted acquisition consideration within preceding 180 days to be defined as Significant Permitted Acquisition
 
 
 
35,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Covenant, temporary increase in consolidated leverage ratio
 
 
 
400.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility , maximum borrowing
 
 
 
140,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility, outstanding
 
 
 
77,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long term debt, maturity date
Feb. 19, 2014 
 
 
Jan. 19, 2017 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt covenant, Consolidated EBITDA requirement for recently completed four fiscal quarters
 
 
 
$ 57,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt covenant, Percentage of consolidated EBITDA
 
 
 
80.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum consolidated leverage ratio
 
 
 
 
 
400.00% 
387.00% 
375.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated coverage ratio
 
 
 
 
250.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility, interest rate
 
 
 
 
 
 
 
 
 
 
4.20% 
 
 
 
 
 
 
 
 
 
 
 
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% 
 
 
 
 
 
 
Income Taxes - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Income Taxes [Line Items]
 
Percentage of qualifying income of partnership for federal income tax purposes
90.00% 
Internal Revenue Service (IRS)
 
Income Taxes [Line Items]
 
Net operating loss carryforwards
$ 194.3 
Net operating loss carryforwards, expiration date
2019 
State and Local Jurisdiction
 
Income Taxes [Line Items]
 
Net operating loss carryforwards
$ 238.2 
Deferred Cemetery Revenues Net (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Deferred Revenue Arrangement [Line Items]
 
 
Deferred merchandise trust unrealized gains (losses)
$ 9,612 
$ 10,996 
Deferred cost of goods sold
(56,324)
(54,257)
Deferred cemetery revenues, net
598,159 
579,993 
Deferred selling and obtaining costs
90,801 
87,998 
Pre Acquisition Margin
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred cemetery revenues, net
130,037 
131,274 
Cemetery
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred cemetery revenues, net
417,298 
403,250 
Merchandise Trusts
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred cemetery revenues, net
$ 97,536 
$ 88,730 
Commitments and Contingencies - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Leases And Employment Agreements Disclosure [Line Items]
 
 
Operating lease expense
$ 0.6 
$ 0.7 
Minimum
 
 
Leases And Employment Agreements Disclosure [Line Items]
 
 
Operating lease, initial term
1 year 
 
Maximum
 
 
Leases And Employment Agreements Disclosure [Line Items]
 
 
Operating lease, initial term
25 years 
 
Operating Leases Future Payments (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Operating Leases Future Minimum Payments Due [Line Items]
 
2015
$ 1,203 
2016
1,054 
2017
965 
2018
899 
2019
883 
Thereafter
1,215 
Total
$ 6,219 
Partners' Capital - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
1 Months Ended 3 Months Ended
Feb. 27, 2014
Mar. 31, 2013
Mar. 31, 2014
Unit appreciation rights
Limited Partners' Capital Account [Line Items]
 
 
 
Non-vested unit appreciation rights expense outstanding
 
 
$ 0.2 
Number of units not included in diluted weighted average number of limited partners' units outstanding
 
315,873 
 
Public offering, common units sold
2,300,000 
 
 
Public offering, price per unit
$ 24.45 
 
 
Public offering, net proceeds
$ 53.2 
 
 
Acquisitions - Additional Information (Detail) (USD $)
1 Months Ended 3 Months Ended 1 Months Ended 3 Months Ended 1 Months Ended 1 Months Ended 3 Months Ended
Feb. 28, 2013
Mar. 31, 2013
Mar. 31, 2014
Feb. 28, 2013
Purchase and Sale Agreement
Funeral Homes Property
Feb. 28, 2013
Purchase and Sale Agreement
Funeral Homes Property
Noncompete Agreements
Installment
Sep. 26, 2013
Third Quarter 2013 Acquisition
Mar. 31, 2014
Third Quarter 2013 Acquisition
Mar. 31, 2013
Third Quarter 2013 Acquisition
Sep. 26, 2013
Third Quarter 2013 Acquisition
Minimum
Sep. 26, 2013
Third Quarter 2013 Acquisition
Maximum
Sep. 26, 2013
Third Quarter 2013 Acquisition
Cemetery property
Property
Sep. 26, 2013
Third Quarter 2013 Acquisition
Cemetery property
License Agreement
Property
Sep. 26, 2013
Third Quarter 2013 Acquisition
Cemetery property
Management Agreement
Property
Jan. 16, 2014
First Quarter 2014 Acquisition
Jan. 16, 2014
First Quarter 2014 Acquisition
Cemetery property
Property
Mar. 31, 2014
Two Thousand Fourteen Acquisitions
Maximum
Mar. 31, 2014
Two Thousand Thirteen Acquisitions
Mar. 31, 2014
Two Thousand Thirteen Acquisitions
Maximum
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of businesses acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consideration paid
 
 
 
$ 9,100,000 
 
 
 
 
 
 
 
 
 
$ 200,000 
 
 
 
 
Units issued in connection with acquisition
 
 
 
159,635 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consideration paid - units
 
 
 
3,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-Term Debt, face amount
 
 
 
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-Term Debt, interest rate
 
 
 
5.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-Term Debt, maturity
Feb. 19, 2014 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Installment payment amount
 
 
 
 
1,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of installment payments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Installment payment start date
 
 
 
 
Feb. 19, 2014 
 
 
 
 
 
 
 
 
 
 
 
 
 
Finite lived intangible asset, amortization period
 
6 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property Acquired, revenue contributed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000 
1,000,000 
 
Property Acquired, operating profit (loss) contributed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000 
 
(100,000)
Settlement agreement, funds placed into trust
 
 
 
 
 
 
 
1,300,000 
 
 
 
 
 
 
 
 
 
 
Litigation settlement, Gain on settlement agreement
 
912,000 
 
 
 
 
 
900,000 
 
 
 
 
 
 
 
 
 
 
Legal fees
 
 
 
 
 
 
 
400,000 
 
 
 
 
 
 
 
 
 
 
Number of properties acquired
 
 
 
 
 
 
 
 
 
 
13 
 
 
 
 
 
Up-front rental payment to landlord
 
 
 
 
 
53,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate fixed rent payment to landlord
 
 
$ 6,219,000 
 
 
$ 36,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rent for lease, years deferred
 
 
 
 
 
 
 
 
6 years 
11 years 
 
 
 
 
 
 
 
 
Leasing agreement description
 
 
 
 
 
 
If Landlord terminates the Lease pursuant to a Lease Year 11 Termination, Landlord must repay to Tenant all $53.0 million of the Up-Front Rent. If the Lease is terminated for cause at any time, Landlord must repay to Tenant the unamortized portion of the Up-Front Rent (i) based on a 60 year amortization schedule if terminated by Tenant due to Landlord's default and (ii) based on a 30 year amortization schedule if terminated by Landlord due to Tenant's default. 
 
 
 
 
 
 
 
 
 
 
 
Percentage of sales proceeds to landlord from the sale of undeveloped land
 
 
 
 
 
51.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Preliminary Assessment of Fair Value of Net Assets Acquired and Resulting Gain on Bargain Purchase of First Quarter Twenty Fourteen (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 1 Months Ended 3 Months Ended
Mar. 31, 2014
Jan. 16, 2014
First Quarter 2014 Acquisition
Mar. 31, 2014
First Quarter 2014 Acquisition
Preliminary Allocation
Mar. 31, 2014
First Quarter 2014 Acquisition
Preliminary Allocation
Accounts receivable
Mar. 31, 2014
First Quarter 2014 Acquisition
Preliminary Allocation
Perpetual care trusts, restricted, at fair value
Merchandise Trusts
Mar. 31, 2014
First Quarter 2014 Acquisition
Preliminary Allocation
Perpetual care trusts, restricted, at fair value
Perpetual care trusts
Mar. 31, 2014
First Quarter 2014 Acquisition
Preliminary Allocation
Deferred margin
Mar. 31, 2014
First Quarter 2014 Acquisition
Preliminary Allocation
Merchandise Liabilities Noncurrent
Mar. 31, 2014
First Quarter 2014 Acquisition
Preliminary Allocation
Deferred tax liability
Mar. 31, 2014
First Quarter 2014 Acquisition
Preliminary Allocation
Perpetual care trust corpus
Perpetual care trusts
Mar. 31, 2014
First Quarter 2014 Acquisition
Preliminary Allocation
Other liabilities
Mar. 31, 2014
First Quarter 2014 Acquisition
Preliminary Allocation
Cemetery property
Mar. 31, 2014
First Quarter 2014 Acquisition
Preliminary Allocation
Property and equipment
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of assets acquired
 
 
 
$ 47 
$ 2,607 
$ 691 
 
 
 
 
 
 
 
Estimated fair value of property acquired
 
 
 
 
 
 
 
 
 
 
 
470 
140 
Total assets
 
 
3,955 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of liabilities assumed
 
 
 
 
 
 
1,035 
956 
641 
691 
20 
 
 
Total liabilities
 
 
3,343 
 
 
 
 
 
 
 
 
 
 
Fair value of net assets acquired
 
 
612 
 
 
 
 
 
 
 
 
 
 
Consideration paid
 
200 
200 
 
 
 
 
 
 
 
 
 
 
Gain on bargain purchase
$ 412 
 
$ 412 
 
 
 
 
 
 
 
 
 
 
Revised Assessment of Fair Value of Net Assets Acquired of First Quarter Twenty Thirteen Acquisition (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 3 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Mar. 31, 2013
Mar. 31, 2014
Funeral Home
Dec. 31, 2013
Funeral Home
Mar. 31, 2013
Funeral Home
Mar. 31, 2014
First Quarter 2013 Acquisition
Funeral Home
Mar. 31, 2014
First Quarter 2013 Acquisition
Funeral Home
Accounts receivable
Mar. 31, 2014
First Quarter 2013 Acquisition
Funeral Home
Perpetual care trusts, restricted, at fair value
Merchandise Trusts
Mar. 31, 2014
First Quarter 2013 Acquisition
Funeral Home
Deferred margin
Mar. 31, 2014
First Quarter 2013 Acquisition
Funeral Home
Merchandise Liabilities Noncurrent
Mar. 31, 2014
First Quarter 2013 Acquisition
Funeral Home
Other liabilities
Mar. 31, 2014
First Quarter 2013 Acquisition
Funeral Home
Noncompete Agreements
Mar. 31, 2014
First Quarter 2013 Acquisition
Funeral Home
Property and equipment
Mar. 31, 2014
First Quarter 2013 Acquisition
Revised Assessment
Funeral Home
Mar. 31, 2014
First Quarter 2013 Acquisition
Revised Assessment
Funeral Home
Accounts receivable
Mar. 31, 2014
First Quarter 2013 Acquisition
Revised Assessment
Funeral Home
Perpetual care trusts, restricted, at fair value
Merchandise Trusts
Mar. 31, 2014
First Quarter 2013 Acquisition
Revised Assessment
Funeral Home
Deferred margin
Mar. 31, 2014
First Quarter 2013 Acquisition
Revised Assessment
Funeral Home
Merchandise Liabilities Noncurrent
Mar. 31, 2014
First Quarter 2013 Acquisition
Revised Assessment
Funeral Home
Other liabilities
Mar. 31, 2014
First Quarter 2013 Acquisition
Revised Assessment
Funeral Home
Noncompete Agreements
Mar. 31, 2014
First Quarter 2013 Acquisition
Revised Assessment
Funeral Home
Property and equipment
Mar. 31, 2014
First Quarter 2013 Acquisition
Adjustments
Funeral Home
Mar. 31, 2014
First Quarter 2013 Acquisition
Adjustments
Funeral Home
Accounts receivable
Mar. 31, 2014
First Quarter 2013 Acquisition
Adjustments
Funeral Home
Deferred margin
Mar. 31, 2014
First Quarter 2013 Acquisition
Adjustments
Funeral Home
Merchandise Liabilities Noncurrent
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of assets acquired
 
 
 
 
 
 
 
$ 1,006 
$ 4,853 
 
 
 
 
 
 
$ 695 
$ 4,853 
 
 
 
 
 
 
$ 311 
 
 
Estimated fair value of property and equipment acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
8,315 
 
 
 
 
 
 
 
8,315 
 
 
 
 
Estimated fair value of intangibles
 
 
 
 
 
 
 
 
 
 
 
 
1,927 
 
 
 
 
 
 
 
1,927 
 
 
 
 
 
Total assets
 
 
 
 
 
 
16,101 
 
 
 
 
 
 
 
15,790 
 
 
 
 
 
 
 
311 
 
 
 
Estimated fair value of liabilities assumed
 
 
 
 
 
 
 
 
 
827 
4,839 
164 
 
 
 
 
 
2,419 
2,233 
164 
 
 
 
 
(1,592)
2,606 
Total liabilities
 
 
 
 
 
 
5,830 
 
 
 
 
 
 
 
4,816 
 
 
 
 
 
 
 
1,014 
 
 
 
Fair value of net assets acquired
 
 
 
 
 
 
10,271 
 
 
 
 
 
 
 
10,974 
 
 
 
 
 
 
 
(703)
 
 
 
Consideration paid - cash
 
 
 
 
 
 
9,100 
 
 
 
 
 
 
 
9,100 
 
 
 
 
 
 
 
 
 
 
 
Consideration paid - units
 
 
 
 
 
 
3,592 
 
 
 
 
 
 
 
3,592 
 
 
 
 
 
 
 
 
 
 
 
Fair value of note payable
 
 
 
 
 
 
3,000 
 
 
 
 
 
 
 
3,000 
 
 
 
 
 
 
 
 
 
 
 
Fair value of debt assumed for non-compete agreement
 
 
 
 
 
 
 
 
 
 
 
 
924 
 
 
 
 
 
 
 
924 
 
 
 
 
 
Total consideration paid
 
 
 
 
 
 
16,616 
 
 
 
 
 
 
 
16,616 
 
 
 
 
 
 
 
 
 
 
 
Goodwill from purchase
$ 48,737 
$ 48,737 
$ 48,737 
$ 30,615 
$ 30,615 
$ 30,615 
$ 6,345 
 
 
 
 
 
 
 
$ 5,642 
 
 
 
 
 
 
 
$ 703 
 
 
 
Consolidated Pro Forma Information (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
 
 
Revenue
$ 64,398 
$ 60,111 
Net income (loss)
$ (2)
$ (1,655)
Net income (loss) per limited partner unit (basic and diluted)
 
$ (0.08)
Fixed Rent for Cemeteries (Detail) (USD $)
1 Months Ended
Sep. 26, 2013
Lease Years 1-5
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
$ 0 
Lease Years 6-20
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
1,000,000 
Lease Years 21-25
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
1,200,000 
Lease Years 26- 35
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
1,500,000 
Lease Years 36-60
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
$ 0 
Minimum |
Lease Years 1-5
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
1 year 
Minimum |
Lease Years 6-20
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
6 years 
Minimum |
Lease Years 21-25
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
21 years 
Minimum |
Lease Years 26- 35
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
26 years 
Minimum |
Lease Years 36-60
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
36 years 
Maximum |
Lease Years 1-5
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
5 years 
Maximum |
Lease Years 6-20
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
20 years 
Maximum |
Lease Years 21-25
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
25 years 
Maximum |
Lease Years 26- 35
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
35 years 
Maximum |
Lease Years 36-60
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
60 years 
Segment Information - Additional Information (Detail)
3 Months Ended
Mar. 31, 2014
Segment
Segment Reporting Disclosure [Line Items]
 
Number of distinct reportable segments
Pre-need sales revenue recognition, percentage of sales price collected
10.00% 
Cemetery
 
Segment Reporting Disclosure [Line Items]
 
Number of distinct reportable segments
Segment Information (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Dec. 31, 2013
Revenues
 
 
 
Revenues
$ 64,387 
$ 59,612 
 
Costs and expenses
 
 
 
Selling
11,189 
11,224 
 
General and administrative
7,645 
7,582 
 
Corporate overhead
7,456 
7,988 
 
Depreciation and amortization
2,368 
2,330 
 
Funeral home
9,286 
8,736 
 
Acquisition related costs, net of recoveries
349 
1,283 
 
Total costs and expenses
59,126 
58,218 
 
Operating profit
5,261 
1,394 
 
Total assets
1,492,967 
1,420,709 
1,474,343 
Long lived asset additions
3,156 
10,984 
 
Goodwill
48,737 
48,737 
48,737 
Cemetery
 
 
 
Costs and expenses
 
 
 
Cost of sales
7,504 
6,290 
 
Cemetery
13,329 
12,785 
 
Cemetery |
Sales
 
 
 
Revenues
 
 
 
Revenues
28,874 
29,986 
 
Cemetery |
Service and other
 
 
 
Revenues
 
 
 
Revenues
23,766 
18,208 
 
Funeral Homes Property
 
 
 
Revenues
 
 
 
Revenues
11,747 
11,418 
 
Cemetery property
 
 
 
Costs and expenses
 
 
 
Amortization of cemetery property
2,723 
1,686 
 
Cemetery Operations South East
 
 
 
Revenues
 
 
 
Revenues
33,727 
32,975 
 
Costs and expenses
 
 
 
Selling
7,248 
7,213 
 
General and administrative
4,096 
3,986 
 
Depreciation and amortization
633 
529 
 
Total costs and expenses
23,164 
22,075 
 
Operating profit
10,563 
10,900 
 
Total assets
580,359 
538,893 
 
Long lived asset additions
1,564 
910 
 
Goodwill
6,174 
6,174 
6,174 
Cemetery Operations South East |
Cemetery
 
 
 
Costs and expenses
 
 
 
Cost of sales
4,792 
4,375 
 
Cemetery
6,395 
5,972 
 
Cemetery Operations South East |
Cemetery |
Sales
 
 
 
Revenues
 
 
 
Revenues
22,101 
21,870 
 
Cemetery Operations South East |
Cemetery |
Service and other
 
 
 
Revenues
 
 
 
Revenues
11,626 
11,105 
 
Cemetery Operations South East |
Cemetery property
 
 
 
Costs and expenses
 
 
 
Amortization of cemetery property
1,251 
851 
 
Cemetery Operations North East
 
 
 
Revenues
 
 
 
Revenues
18,014 
15,528 
 
Costs and expenses
 
 
 
Selling
2,802 
3,159 
 
General and administrative
1,492 
1,583 
 
Depreciation and amortization
236 
222 
 
Total costs and expenses
9,443 
10,064 
 
Operating profit
8,571 
5,464 
 
Total assets
318,937 
312,930 
 
Long lived asset additions
442 
877 
 
Cemetery Operations North East |
Cemetery
 
 
 
Costs and expenses
 
 
 
Cost of sales
1,678 
1,867 
 
Cemetery
3,235 
3,233 
 
Cemetery Operations North East |
Cemetery |
Sales
 
 
 
Revenues
 
 
 
Revenues
7,410 
8,977 
 
Cemetery Operations North East |
Cemetery |
Service and other
 
 
 
Revenues
 
 
 
Revenues
10,604 
6,551 
 
Cemetery Operations North East |
Cemetery property
 
 
 
Costs and expenses
 
 
 
Amortization of cemetery property
583 
622 
 
Cemetery Operations West
 
 
 
Revenues
 
 
 
Revenues
20,744 
18,889 
 
Costs and expenses
 
 
 
Selling
3,234 
3,091 
 
General and administrative
2,057 
2,013 
 
Depreciation and amortization
521 
540 
 
Total costs and expenses
12,288 
10,735 
 
Operating profit
8,456 
8,154 
 
Total assets
434,562 
414,580 
 
Long lived asset additions
1,041 
512 
 
Goodwill
11,948 
11,948 
11,948 
Cemetery Operations West |
Cemetery
 
 
 
Costs and expenses
 
 
 
Cost of sales
2,777 
1,511 
 
Cemetery
3,699 
3,580 
 
Cemetery Operations West |
Cemetery |
Sales
 
 
 
Revenues
 
 
 
Revenues
9,821 
9,760 
 
Cemetery Operations West |
Cemetery |
Service and other
 
 
 
Revenues
 
 
 
Revenues
10,923 
9,129 
 
Cemetery Operations West |
Cemetery property
 
 
 
Costs and expenses
 
 
 
Amortization of cemetery property
1,223 
247 
 
Funeral Home
 
 
 
Revenues
 
 
 
Revenues
13,254 
12,827 
 
Costs and expenses
 
 
 
Depreciation and amortization
736 
659 
 
Funeral home
9,504 
8,923 
 
Total costs and expenses
10,240 
9,582 
 
Operating profit
3,014 
3,245 
 
Total assets
135,819 
130,375 
 
Long lived asset additions
57 
8,654 
 
Goodwill
30,615 
30,615 
30,615 
Funeral Home |
Funeral Homes Property
 
 
 
Revenues
 
 
 
Revenues
13,254 
12,827 
 
Adjustment
 
 
 
Revenues
 
 
 
Revenues
(21,352)
(20,607)
 
Costs and expenses
 
 
 
Selling
(2,640)
(2,611)
 
Funeral home
(218)
(187)
 
Total costs and expenses
(4,601)
(4,261)
 
Operating profit
(16,751)
(16,346)
 
Adjustment |
Cemetery
 
 
 
Costs and expenses
 
 
 
Cost of sales
(1,743)
(1,463)
 
Adjustment |
Cemetery |
Sales
 
 
 
Revenues
 
 
 
Revenues
(10,458)
(10,621)
 
Adjustment |
Cemetery |
Service and other
 
 
 
Revenues
 
 
 
Revenues
(9,387)
(8,577)
 
Adjustment |
Funeral Homes Property
 
 
 
Revenues
 
 
 
Revenues
(1,507)
(1,409)
 
Adjustment |
Cemetery property
 
 
 
Costs and expenses
 
 
 
Amortization of cemetery property
(334)
(34)
 
Corporate
 
 
 
Costs and expenses
 
 
 
Selling
545 
372 
 
Corporate overhead
7,456 
7,988 
 
Depreciation and amortization
242 
380 
 
Acquisition related costs, net of recoveries
349 
1,283 
 
Total costs and expenses
8,592 
10,023 
 
Operating profit
(8,592)
(10,023)
 
Total assets
23,290 
23,931 
 
Long lived asset additions
$ 52 
$ 31 
 
Assets and Liabilities Measured at Fair Value (Detail) (Variable Interest Entity, Primary Beneficiary, USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Merchandise Trusts
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
$ 449,853 
$ 431,556 
Merchandise Trusts |
Short-term investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
59,227 
46,518 
Merchandise Trusts |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
15,270 
16,495 
Merchandise Trusts |
Fixed maturities |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
9,428 
9,171 
Merchandise Trusts |
Fixed maturities |
Other debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
5,842 
7,324 
Merchandise Trusts |
Mutual funds - debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
113,592 
111,333 
Merchandise Trusts |
Mutual funds - equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
159,214 
157,530 
Merchandise Trusts |
Mutual funds - equity securities |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
51,210 
49,103 
Merchandise Trusts |
Mutual funds - equity securities |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
7,823 
 
Merchandise Trusts |
Mutual funds - equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
26,404 
36,193 
Merchandise Trusts |
Mutual funds - equity securities |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
73,777 
72,234 
Merchandise Trusts |
Equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
89,279 
85,695 
Merchandise Trusts |
Equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
61,254 
57,258 
Merchandise Trusts |
Equity securities |
Global Equity Securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
28,025 
28,437 
Merchandise Trusts |
Other invested assets
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
5,238 
5,723 
Merchandise Trusts |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
441,820 
423,294 
Merchandise Trusts |
Level 1 |
Short-term investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
59,227 
46,518 
Merchandise Trusts |
Level 1 |
Mutual funds - debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
113,592 
111,333 
Merchandise Trusts |
Level 1 |
Mutual funds - equity securities |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
51,210 
49,103 
Merchandise Trusts |
Level 1 |
Mutual funds - equity securities |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
7,823 
 
Merchandise Trusts |
Level 1 |
Mutual funds - equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
26,404 
36,193 
Merchandise Trusts |
Level 1 |
Mutual funds - equity securities |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
73,777 
72,234 
Merchandise Trusts |
Level 1 |
Equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
61,254 
57,258 
Merchandise Trusts |
Level 1 |
Equity securities |
Global Equity Securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
28,025 
28,437 
Merchandise Trusts |
Level 1 |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
421,312 
401,076 
Merchandise Trusts |
Level 2 |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
15,270 
16,495 
Merchandise Trusts |
Level 2 |
Fixed maturities |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
9,428 
9,171 
Merchandise Trusts |
Level 2 |
Fixed maturities |
Other debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
5,842 
7,324 
Merchandise Trusts |
Level 2 |
Other invested assets
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
5,238 
5,723 
Merchandise Trusts |
Level 2 |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
20,508 
22,218 
Perpetual care trusts
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
318,154 
311,771 
Perpetual care trusts |
Short-term investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
20,381 
16,686 
Perpetual care trusts |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
25,427 
25,253 
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
119 
372 
Perpetual care trusts |
Fixed maturities |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
24,937 
24,510 
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
116,933 
116,013 
Perpetual care trusts |
Mutual funds - equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
114,259 
115,593 
Perpetual care trusts |
Mutual funds - equity securities |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
42,673 
40,763 
Perpetual care trusts |
Mutual funds - equity securities |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
14,987 
14,761 
Perpetual care trusts |
Mutual funds - equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
43,246 
46,817 
Perpetual care trusts |
Mutual funds - equity securities |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
13,354 
13,252 
Perpetual care trusts |
Equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
40,975 
37,844 
Perpetual care trusts |
Equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
40,051 
36,925 
Perpetual care trusts |
Equity securities |
Global Equity Securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
924 
919 
Perpetual care trusts |
Other invested assets
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
179 
382 
Perpetual care trusts |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
318,154 
311,771 
Perpetual care trusts |
Level 1 |
Short-term investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
20,381 
16,686 
Perpetual care trusts |
Level 1 |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
119 
372 
Perpetual care trusts |
Level 1 |
Fixed maturities |
U.S. Government and federal agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
119 
372 
Perpetual care trusts |
Level 1 |
Mutual funds - debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
116,932 
116,013 
Perpetual care trusts |
Level 1 |
Mutual funds - equity securities |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
42,673 
40,763 
Perpetual care trusts |
Level 1 |
Mutual funds - equity securities |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
14,987 
14,761 
Perpetual care trusts |
Level 1 |
Mutual funds - equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
43,246 
46,817 
Perpetual care trusts |
Level 1 |
Mutual funds - equity securities |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
13,354 
13,252 
Perpetual care trusts |
Level 1 |
Equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
40,051 
36,925 
Perpetual care trusts |
Level 1 |
Equity securities |
Global Equity Securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
924 
919 
Perpetual care trusts |
Level 1 |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
292,667 
286,508 
Perpetual care trusts |
Level 2 |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
25,308 
24,881 
Perpetual care trusts |
Level 2 |
Fixed maturities |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
24,937 
24,510 
Perpetual care trusts |
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 |
Level 2 |
Other invested assets
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
179 
382 
Perpetual care trusts |
Level 2 |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
$ 25,487 
$ 25,263 
Subsequent Events - Additional Information (Detail) (Subsequent Event, Asset Sale Agreements, USD $)
0 Months Ended
Apr. 2, 2014
Agreement
Subsequent Event [Line Items]
 
Number of asset Sale Agreements
Aggregate purchase price
$ 53,800,000 
Termination period if the Company does not obtain the necessary financing
20 days 
Break-up fee payable
$ 1,000,000 
Funeral Homes Property
 
Subsequent Event [Line Items]
 
Number of properties acquired
Cemetery property
 
Subsequent Event [Line Items]
 
Number of properties acquired
12 
Crematory property
 
Subsequent Event [Line Items]
 
Number of properties acquired