STONEMOR PARTNERS LP, 10-Q filed on 5/8/2015
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2015
May 1, 2015
Document Information [Line Items]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Mar. 31, 2015 
 
Document Fiscal Year Focus
2015 
 
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
 
29,259,424 
Condensed Consolidated Balance Sheet (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Current assets:
 
 
Cash and cash equivalents
$ 6,397 
$ 10,401 
Accounts receivable, net of allowance
65,429 
62,503 
Prepaid expenses
3,107 
4,708 
Other current assets
24,613 
24,266 
Total current assets
99,546 
101,878 
Long-term accounts receivable, net of allowance
91,088 
89,536 
Cemetery property
339,821 
339,848 
Property and equipment, net of accumulated depreciation
99,569 
100,391 
Merchandise trusts, restricted, at fair value
488,007 
484,820 
Perpetual care trusts, restricted, at fair value
345,183 
345,105 
Deferred financing costs, net of accumulated amortization
8,707 
9,089 
Deferred selling and obtaining costs
102,904 
97,795 
Deferred tax assets
40 
40 
Goodwill
58,836 
58,836 
Intangible assets
68,441 
68,990 
Other assets
3,211 
3,136 
Total assets
1,705,353 
1,699,464 
Current liabilities:
 
 
Accounts payable and accrued liabilities
34,552 
35,382 
Accrued interest
4,742 
1,219 
Current portion, long-term debt
1,664 
2,251 
Total current liabilities
40,958 
38,852 
Other long-term liabilities
1,237 
1,292 
Obligation for lease and management agreements, net
8,943 
8,767 
Long-term debt
297,184 
285,378 
Deferred cemetery revenues, net
661,877 
643,408 
Deferred tax liabilities
17,573 
17,708 
Merchandise liability
150,195 
150,192 
Perpetual care trust corpus
345,183 
345,105 
Total liabilities
1,523,150 
1,490,702 
Commitments and contingencies
   
   
Partners' capital (deficit)
 
 
General partner deficit
(6,204)
(5,113)
Common partners, 29,259 and 29,204 units outstanding as of March 31, 2015 and December 31, 2014, respectively
188,407 
213,875 
Total partners' capital
182,203 
208,762 
Total liabilities and partners' capital
$ 1,705,353 
$ 1,699,464 
Condensed Consolidated Balance Sheet (Parenthetical)
In Thousands, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Common partners units, outstanding
29,259 
29,204 
Condensed Consolidated Statement of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Revenues:
 
 
Total revenues
$ 67,417 
$ 64,387 
Costs and expenses:
 
 
Selling expense
13,910 
11,189 
General and administrative expense
9,329 
7,645 
Corporate overhead
8,734 
7,456 
Depreciation and amortization
2,952 
2,368 
Acquisition related costs, net of recoveries
349 
349 
Total cost and expenses
70,772 
59,126 
Operating profit (loss)
(3,355)
5,261 
Gain on acquisition
 
412 
Interest expense
5,463 
5,574 
Net income (loss) before income taxes
(8,818)
99 
Income tax expense (benefit)
65 
(310)
Net income (loss)
(8,883)
409 
General partner's interest in net income (loss) for the period
(120)
Limited partners' interest in net income (loss) for the period
(8,763)
405 
Net income (loss) per limited partner unit (basic and diluted)
$ (0.30)
$ 0.02 
Weighted average number of limited partners' units outstanding - basic
29,230 
22,493 
Weighted average number of limited partners' units outstanding - diluted
29,230 
22,787 
Distributions declared per unit
$ 0.630 
$ 0.600 
Cemetery
 
 
Revenues:
 
 
Merchandise
26,937 
26,068 
Services
13,910 
10,297 
Investment and other
11,310 
16,275 
Costs and expenses:
 
 
Perpetual care
1,667 
1,391 
Merchandise
5,416 
6,113 
Cemetery expense
16,265 
13,329 
Funeral Home
 
 
Revenues:
 
 
Merchandise
7,075 
5,052 
Services
8,185 
6,695 
Costs and expenses:
 
 
Perpetual care
5,593 
4,787 
Merchandise
2,376 
1,646 
Other
$ 4,181 
$ 2,853 
Condensed Consolidated Statement of Operations (Parenthetical) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Corporate overhead, unit-based compensation
$ 272 
$ 271 
Condensed Consolidated Statement of Partners' Capital (Deficit) (USD $)
In Thousands
Total
Common Unit Holders
General Partner
Balance at Dec. 31, 2014
$ 208,762 
$ 213,875 
$ (5,113)
Issuance of common units
1,421 
1,421 
 
Compensation related to unit awards
272 
272 
 
Net loss
(8,883)
(8,763)
(120)
Cash distributions
(17,948)
(16,977)
(971)
Unit distributions
(1,421)
(1,421)
 
Balance at Mar. 31, 2015
$ 182,203 
$ 188,407 
$ (6,204)
Condensed Consolidated Statement of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Operating activities:
 
 
Net income (loss)
$ (8,883)
$ 409 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
Cost of lots sold
2,048 
3,057 
Depreciation and amortization
2,952 
2,368 
Unit-based compensation
272 
271 
Accretion of debt discounts
734 
624 
Gain on acquisition
 
(412)
Changes in assets and liabilities that provided (used) cash:
 
 
Accounts receivable
(5,196)
(3,168)
Allowance for doubtful accounts
719 
705 
Merchandise trust fund
(10,231)
(16,420)
Prepaid expenses
1,601 
1,142 
Other current assets
(348)
3,394 
Other assets
(92)
(44)
Accounts payable and accrued and other liabilities
2,524 
(9,564)
Deferred selling and obtaining costs
(5,109)
(2,803)
Deferred cemetery revenue
24,842 
18,881 
Deferred taxes (net)
(135)
(551)
Merchandise liability
155 
(829)
Net cash provided by (used in) operating activities
5,853 
(2,940)
Investing activities:
 
 
Cash paid for cemetery property
(1,501)
(748)
Purchase of subsidiaries
 
(200)
Cash paid for property and equipment
(1,314)
(1,330)
Net cash used in investing activities
(2,815)
(2,278)
Financing activities:
 
 
Cash distributions
(17,948)
(13,391)
Additional borrowings on long-term debt
20,335 
17,000 
Repayments of long-term debt
(9,395)
(55,504)
Proceeds from public offerings
 
53,178 
Cost of financing activities
(34)
 
Net cash provided by (used in) financing activities
(7,042)
1,283 
Net decrease in cash and cash equivalents
(4,004)
(3,935)
Cash and cash equivalents - Beginning of period
10,401 
12,175 
Cash and cash equivalents - End of period
6,397 
8,240 
Supplemental disclosure of cash flow information:
 
 
Cash paid during the period for interest
1,176 
1,423 
Cash paid during the period for income taxes
66 
 
Non-cash investing and financing activities:
 
 
Acquisition of assets by financing
$ 137 
$ 30 
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, 2015, the Partnership operated 303 cemeteries in 27 states and Puerto Rico, of which 272 are owned and 31 are operated under lease, management or operating agreements. The Partnership also owned and operated 98 funeral homes in 19 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, 2015 and for the three months ended March 31, 2015 and 2014 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, 2014 condensed consolidated balance sheet data was derived from audited financial statements included in the Company’s 2014 Annual Report on Form 10-K (“2014 Form 10-K”), but does not include all disclosures required by GAAP, which are presented in the Company’s 2014 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 31 cemeteries under long-term lease, 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 15 cemeteries under long-term lease, operating or management agreements that do not qualify as acquisitions for accounting purposes, including 13 cemeteries related to the transaction with the Archdiocese of Philadelphia that closed in the second quarter of 2014. 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 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 lease, operating or management 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.

New Accounting Pronouncements

In the second quarter of 2014, the Financial Accounting Standards Board issued Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which supersedes the revenue recognition requirements in “Topic 605 - Revenue Recognition” and most industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. On April 29, 2015, the Financial Accounting Standards Board issued for public comment a proposed update that would defer the effective date of ASU 2014-09 by one year. The Company is currently in the process of evaluating the potential impact of this update on its financial statements.

In the first quarter of 2015, the Financial Accounting Standards Board issued Update No. 2015-02, “Consolidation (Topic 810)” (“ASU 2015-02”), which amends previous consolidation analysis guidance. ASU 2015-02 requires companies to consider revised consolidation criteria regarding limited partnerships and similar legal entities. The amendments are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early application is permitted. The Company is currently in the process of evaluating the impact of this update, which is not expected to have a significant impact on the Company’s financial position, results of operations, or cash flows.

In the second quarter of 2015, the Financial Accounting Standards Board issued Update No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”), which changes the presentation of debt issuance costs. ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. The amendments in the update are effective for annual reporting periods beginning after December 15, 2015, including interim periods within those reporting periods. Early application is permitted. The Company is currently in the process of evaluating the impact of this update, which is not expected to have a significant impact on its financial position, results of operations, or cash flows.

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, assets and liabilities obtained via business combinations 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, consists of the following:

 

     As of  
     March 31,
2015
     December 31,
2014
 
     (in thousands)  

Customer receivables

   $ 200,643       $ 194,537   

Unearned finance income

     (20,911      (20,360

Allowance for contract cancellations

     (23,215      (22,138
  

 

 

    

 

 

 
  156,517      152,039   

Less: current portion, net of allowance

  65,429      62,503   
  

 

 

    

 

 

 

Long-term portion, net of allowance

$ 91,088    $ 89,536   
  

 

 

    

 

 

 

Activity in the allowance for contract cancellations is as follows:

 

     For the three months ended March 31,  
     2015      2014  
     (in thousands)  

Balance - Beginning of period

   $ 22,138       $ 20,275   

Provision for cancellations

     6,072         5,031   

Charge-offs - net

     (4,995      (4,057
  

 

 

    

 

 

 

Balance - End of period

$ 23,215    $ 21,249   
  

 

 

    

 

 

 

There have been no changes to the Company’s long-term accounts receivable accounting policies since the filing of the Company’s 2014 Form 10-K.

CEMETERY PROPERTY
CEMETERY PROPERTY
3. CEMETERY PROPERTY

Cemetery property consists of the following:

 

     As of  
     March 31,
2015
     December 31,
2014
 
     (in thousands)  

Developed land

   $ 79,134       $ 79,058   

Undeveloped land

     172,141         172,238   

Mausoleum crypts and lawn crypts

     78,518         78,524   

Other land

     10,028         10,028   
  

 

 

    

 

 

 

Total

$ 339,821    $ 339,848   
  

 

 

    

 

 

 
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT
4. PROPERTY AND EQUIPMENT

Major classes of property and equipment follow:

 

     As of  
     March 31,
2015
     December 31,
2014
 
     (in thousands)  

Building and improvements

   $ 108,615       $ 108,178   

Furniture and equipment

     50,019         49,290   
  

 

 

    

 

 

 
  158,634      157,468   

Less: accumulated depreciation

  (59,065   (57,077
  

 

 

    

 

 

 

Property and equipment - net

$ 99,569    $ 100,391   
  

 

 

    

 

 

 

Depreciation expense was $2.4 million and $2.0 million during the three months ended March 31, 2015 and 2014, respectively.

MERCHANDISE TRUSTS
MERCHANDISE TRUSTS
5. MERCHANDISE TRUSTS

At March 31, 2015, 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 primarily in securities that are currently paying dividends or distributions. These investments include Master Limited Partnerships and global equity securities;

 

    Fixed maturity debt securities issued by various corporate entities; 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 $8.4 million and $8.3 million of investments held in trust by the West Virginia Funeral Directors Association at March 31, 2015 and December 31, 2014, 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 the merchandise trusts at March 31, 2015 and December 31, 2014 were as follows:

 

As of March 31, 2015

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

Short-term investments

   $ 31,591       $ —         $ —         $ 31,591   

Fixed maturities:

           

U.S. State and local government agency

     65         15         —           80   

Corporate debt securities

     12,566         67         (376      12,257   

Other debt securities

     7,182         —           (8      7,174   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

  19,813      82      (384   19,511   
  

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  246,768      978      (9,047   238,699   

Mutual funds - equity securities

  129,452      2,772      (1,578   130,646   

Equity securities

  54,888      3,500      (4,336   54,052   

Other invested assets

  5,469      —        (343   5,126   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total managed investments

$ 487,981    $ 7,332    $ (15,688 $ 479,625   
  

 

 

    

 

 

    

 

 

    

 

 

 

West Virginia Trust Receivable

  8,382      —        —        8,382   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 496,363    $ 7,332    $ (15,688 $ 488,007   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

As of December 31, 2014

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

Short-term investments

   $ 52,521       $ —         $ —         $ 52,521   

Fixed maturities:

           

U.S. State and local government agency

     270         —           (1      269   

Corporate debt securities

     9,400         23         (447      8,976   

Other debt securities

     7,157         —           (18      7,139   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

  16,827      23      (466   16,384   
  

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  150,477      869      (8,666   142,680   

Mutual funds - equity securities

  167,353      12,568      (463   179,458   

Equity securities

  81,639      4,167      (5,507   80,299   

Other invested assets

  5,400      —        (241   5,159   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total managed investments

$ 474,217    $ 17,627    $ (15,343 $ 476,501   
  

 

 

    

 

 

    

 

 

    

 

 

 

West Virginia Trust Receivable

  8,319      —        —        8,319   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 482,536    $ 17,627    $ (15,343 $ 484,820   
  

 

 

    

 

 

    

 

 

    

 

 

 

The contractual maturities of debt securities as of March 31, 2015 are presented below:

 

As of March 31, 2015

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

U.S. State and local government agency

   $ —         $ 18       $ 60       $ 2   

Corporate debt securities

     —           7,052         5,205         —     

Other debt securities

     891         6,283         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

$ 891    $ 13,353    $ 5,265    $ 2   
  

 

 

    

 

 

    

 

 

    

 

 

 

Temporary Declines in Fair Value

The Company evaluates declines in fair value below cost of each individual asset held in the merchandise trusts on a quarterly basis.

An aging of unrealized losses on the Company’s investments in fixed maturities and equity securities at March 31, 2015 and December 31, 2014 is presented below:

 

     Less than 12 months      12 Months or more      Total      Number of
Securities in
Loss Position
 

As of March 31, 2015

   Fair
Value
     Unrealized
Losses
     Fair
Value
     Unrealized
Losses
     Fair
Value
     Unrealized
Losses
    
     (in thousands, except number of securities data)  

Fixed maturities:

                    

Corporate debt securities

   $ 6,070       $ 214       $ 2,539       $ 162       $ 8,609       $ 376         46   

Other debt securities

     2,384         2         4,790         6         7,174         8         13   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

  8,454      216      7,329      168      15,783      384      59   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  87,042      617      132,090      8,430      219,132      9,047      28   

Mutual funds - equity securities

  49,100      1,578      —        —        49,100      1,578      4   

Equity securities

  26,285      3,671      3,511      665      29,796      4,336      56   

Other invested assets

  —        —        4,918      343      4,918      343      1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 170,881    $ 6,082    $ 147,848    $ 9,606    $ 318,729    $ 15,688      148   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     Less than 12 months      12 Months or more      Total      Number of
Securities in
Loss Position
 

As of December 31, 2014

   Fair
Value
     Unrealized
Losses
     Fair
Value
     Unrealized
Losses
     Fair
Value
     Unrealized
Losses
    
     (in thousands, except number of securities data)  

Fixed maturities:

                    

U.S. State and local government agency

   $ 143       $ 1       $ —         $ —         $ 143       $ 1         3   

Corporate debt securities

     5,905         342         1,506         105         7,411         447         58   

Other debt securities

     2,370         8         4,769         10         7,139         18         13   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

  8,418      351      6,275      115      14,693      466      74   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  32,072      1,039      95,629      7,627      127,701      8,666      34   

Mutual funds - equity securities

  4,147      463      —        —        4,147      463      2   

Equity securities

  44,563      4,641      3,909      866      48,472      5,507      60   

Other invested assets

  —        —        4,881      241      4,881      241      1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 89,200    $ 6,494    $ 110,694    $ 8,849    $ 199,894    $ 15,343      171   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

There were 148 and 171 securities in an unrealized loss position in merchandise trusts as of March 31, 2015 and December 31, 2014, respectively, of which 38 and 39, respectively, were in an unrealized loss position for more than twelve months. For all securities in an unrealized loss position, the Company evaluated the severity of the impairment and length of time that a security has been in a loss position and has concluded the decline in fair value below the asset’s cost was temporary in nature. In addition, the Company is not aware of any circumstances that would prevent the future market value recovery for these securities.

 

Other-Than-Temporary Impairment of Trust Assets

During the three months ended March 31, 2015, the Company determined that there were two securities with an aggregate cost basis of approximately $0.6 million and an aggregate fair value of approximately $0.4 million, resulting in an impairment of $0.2 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.

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

A reconciliation of the Company’s merchandise trust activities for the three months ended March 31, 2015 is presented below:

 

Fair

Value at
12/31/2014

 

Contributions

 

Distributions

 

Interest/
Dividends

 

Capital

Gain
Distributions

 

Realized
Gain/

Loss (1)

 

Taxes

 

Fees

 

Unrealized
Change in
Fair Value

 

Fair

Value at
3/31/2015

(in thousands)

$484,820

  16,540   (11,537)   3,874   —     5,702   (15)   (737)   (10,640)   $488,007

 

(1) Includes $3.9 million representing the net effect of other-than-temporary impairment charges and the release of previously realized impairment charges, as a result of sales and maturities of impaired securities.

The Company made net contributions into the trusts of approximately $5.0 million during the three months ended March 31, 2015. During the three months ended March 31, 2015, purchases and sales of securities available for sale included in trust investments were approximately $239.0 million and $239.1 million, respectively.

PERPETUAL CARE TRUSTS
PERPETUAL CARE TRUSTS
6. PERPETUAL CARE TRUSTS

At March 31, 2015, 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 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 the perpetual care trusts at March 31, 2015 and December 31, 2014 were as follows:

 

As of March 31, 2015

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

Short-term investments

   $ 30,012       $ —         $ —         $ 30,012   

Fixed maturities:

           

U.S. Government and federal agency

     100         15         —           115   

U.S. State and local government agency

     27         1         —           28   

Corporate debt securities

     24,774         224         (782      24,216   

Other debt securities

     371         —           —           371   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

  25,272      240      (782   24,730   
  

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  202,419      414      (4,777   198,056   

Mutual funds - equity securities

  77,034      12,763      (40   89,757   

Equity securities

  2,167      489      (35   2,621   

Other invested assets

  7      —        —        7   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 336,911    $ 13,906    $ (5,634 $ 345,183   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

As of December 31, 2014

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

Short-term investments

   $ 26,644       $ —         $ —         $ 26,644   

Fixed maturities:

           

U.S. Government and federal agency

     100         16         —           116   

U.S. State and local government agency

     78         1         —           79   

Corporate debt securities

     24,275         104         (913      23,466   

Other debt securities

     371         —           —           371   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

  24,824      121      (913   24,032   
  

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  128,735      379      (5,220   123,894   

Mutual funds - equity securities

  103,701      23,003      (1,268   125,436   

Equity securities

  30,617      14,704      (247   45,074   

Other invested assets

  25      —        —        25   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 314,546    $ 38,207    $ (7,648 $ 345,105   
  

 

 

    

 

 

    

 

 

    

 

 

 

The contractual maturities of debt securities as of March 31, 2015 were as follows:

 

As of March 31, 2015

   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

   $ —         $ 115       $ —         $ —     

U.S. State and local government agency

     28         —           —           —     

Corporate debt securities

     455         14,723         9,018         20   

Other debt securities

     371         —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

$ 854    $ 14,838    $ 9,018    $ 20   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

Temporary Declines in Fair Value

The Company evaluates declines in fair value below cost of each individual asset held in the perpetual care trusts on a quarterly basis.

An aging of unrealized losses on the Company’s investments in fixed maturities and equity securities at March 31, 2015 and December 31, 2014 is presented below:

 

     Less than 12 months      12 Months or more      Total      Number of
Securities in
Loss Position
 

As of March 31, 2015

   Fair
Value
     Unrealized
Losses
     Fair
Value
     Unrealized
Losses
     Fair
Value
     Unrealized
Losses
    
     (in thousands, except number of securities data)  

Fixed maturities:

                    

Corporate debt securities

   $ 10,571       $ 516       $ 3,861       $ 266       $ 14,432       $ 782         55   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

  10,571      516      3,861      266      14,432      782      55   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  18,437      529      119,177      4,248      137,614      4,777      30   

Mutual funds - equity securities

  3,458      40      —        —        3,458      40      2   

Equity securities

  237      32      619      3      856      35      25   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 32,703    $ 1,117    $ 123,657    $ 4,517    $ 156,360    $ 5,634      112   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     Less than 12 months      12 Months or more      Total      Number of
Securities in
Loss Position
 

As of December 31, 2014

   Fair
Value
     Unrealized
Losses
     Fair
Value
     Unrealized
Losses
     Fair
Value
     Unrealized
Losses
    
     (in thousands, except number of securities data)  

Fixed maturities:

                    

Corporate debt securities

   $ 14,434       $ 798       $ 2,519       $ 115       $ 16,953       $ 913         83   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

  14,434      798      2,519      115      16,953      913      83   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  30,345      768      86,814      4,452      117,159      5,220      31   

Mutual funds - equity securities

  13,035      1,268      —        —        13,035      1,268      5   

Equity securities

  3,866      245      620      2      4,486      247      29   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 61,680    $ 3,079    $ 89,953    $ 4,569    $ 151,633    $ 7,648      148   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

There were 112 and 148 securities in an unrealized loss position in perpetual care trusts as of March 31, 2015 and December 31, 2014, respectively, of which 22 and 20, respectively, were in an unrealized loss position for more than twelve months. For all securities in an unrealized loss position, the Company evaluated the severity of the impairment and length of time that a security has been in a loss position and has concluded the decline in fair value below the asset’s cost was temporary in nature. In addition, the Company is not aware of any circumstances that would prevent the future market value recovery for these securities.

Other-Than-Temporary Impairment of Trust Assets

During the three months ended March 31, 2015 and 2014, the Company determined that there were no other than temporary impairments to the investment portfolio in the perpetual care trusts.

A reconciliation of the Company’s perpetual care trust activities for the three months ended March 31, 2015 is presented below:

 

Fair
Value at
12/31/2014

   Contributions      Distributions     Interest/
Dividends
     Capital
Gain
Distributions
     Realized
Gain/
Loss (1)
     Taxes     Fees     Unrealized
Change in
Fair Value
    Fair
Value at
3/31/2015
 
(in thousands)  

$345,105

     6,478         (2,793     3,649         —           15,699         (134     (534     (22,287   $ 345,183   

 

(1) Includes $12.0 million representing the net effect of other-than-temporary impairment charges and the release of previously realized impairment charges, as a result of sales and maturities of impaired securities.

The Company made net contributions into the trusts of approximately $3.7 million during the three months ended March 31, 2015. During the three months ended March 31, 2015, purchases and sales of securities available for sale included in trust investments were approximately $233.9 million and $230.7 million, respectively.

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.

There have been no changes in the goodwill balance during the period and a summary by reportable segment is as follows:

 

     Cemeteries      Funeral
Homes
    

 

 
     Southeast      Northeast      West         Total  
     (in thousands)  

Goodwill as of March 31, 2015 and December 31, 2014

   $ 8,950       $ 3,288       $ 11,948       $ 34,650       $ 58,836   

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 lease, management and operating agreements. All of the intangible assets are amortized as a component of depreciation and amortization in the unaudited condensed consolidated statement of operations. The major classes of intangible assets are as follows:

 

     As of March 31, 2015      As of December 31, 2014  
     Gross Carrying
Amount
     Accumulated
Amortization
    Net Intangible
Asset
     Gross Carrying
Amount
     Accumulated
Amortization
    Net Intangible
Asset
 
     (in thousands)  

Amortized intangible assets:

               

Lease and management agreements

   $ 59,758       $ (830   $ 58,928       $ 59,758       $ (581   $ 59,177   

Underlying contract value

     6,239         (897     5,342         6,239         (858     5,381   

Non-compete agreements

     5,250         (2,375     2,875         5,250         (2,126     3,124   

Other intangible assets

     1,439         (143     1,296         1,439         (131     1,308   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total intangible assets

$ 72,686    $ (4,245 $ 68,441    $ 72,686    $ (3,696 $ 68,990   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

See Note 7 of the Company’s 2014 Form 10-K for a discussion of the Company’s intangible assets, including its contract-based intangible asset pertaining to the lease and management agreements with the Archdiocese of Philadelphia.

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

The Company had the following outstanding debt:

 

     As of  
     March 31,
2015
     December 31,
2014
 
     (in thousands)  

7.875% Senior Notes, due June 2021

   $ 175,000       $ 175,000   

Credit Facility, due December 2019:

     

Working Capital Draws

     97,902         85,902   

Acquisition Draws

     25,000         25,000   

Notes payable - acquisition debt

     819         861   

Notes payable - acquisition non-competes

     2,396         2,765   

Insurance and vehicle financing

     1,121         1,632   
  

 

 

    

 

 

 

Total

  302,238      291,160   

Less current portion

  1,664      2,251   

Less unamortized bond and note payable discounts

  3,390      3,531   
  

 

 

    

 

 

 

Long-term portion

$ 297,184    $ 285,378   
  

 

 

    

 

 

 

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 2014 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, since 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 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 are amortized over the life of the Senior Notes. Based on trades made on March 31, 2015, the Company has estimated the fair value of its Senior Notes to be in excess of par and trading at a premium of 4.94%, which would imply a fair value of $183.6 million at March 31, 2015. 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, 2015, the Company was in compliance with all applicable covenants of the Senior Notes.

Credit Facility

On December 19, 2014, the Partnership entered into the Fourth Amended and Restated Credit Agreement (the “Credit Agreement”).

The Credit Agreement provides for a single revolving credit facility of $180.0 million (the “Credit Facility”) maturing on December 19, 2019. Additionally the Credit Agreement provides for an uncommitted ability to increase the Credit Facility by an additional $70.0 million. The summary of the material terms of the Credit Agreement is set forth below. Capitalized terms, which are not defined in the following description, shall have the meaning assigned to such terms in the Credit Agreement.

At March 31, 2015, amounts outstanding under the Credit Facility bore interest at rates of approximately 3.5%. The interest rates on the Credit Facility are calculated as follows:

 

    For Eurodollar Rate Loans, the outstanding principal amount thereof bears interest for each Interest Period at a rate per annum equal to the Eurodollar Rate for the Interest Period plus the Applicable Rate for Eurodollar Rate Loans; and

 

    For Base Rate Loans and Swing Line Loans, the outstanding principal amount thereof bears interest from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate for Base Rate Loans.

 

In addition, the Borrowers must pay a Letter of Credit Fee for each Letter of Credit equal to the Applicable Rate for Letter of Credit Fees times the daily amount to be drawn under such Letter of Credit. The Applicable Rate is determined based on the Consolidated Leverage Ratio of the Partnership and its Subsidiaries, and ranges from 2.25% to 4.00% for Eurodollar Rate Loans and Letter of Credit Fees, and 1.25% to 3.00% for Base Rate Loans. The current Applicable Rate for each of: (i) Eurodollar Rate Loans and Letter of Credit Fees is 3.75% and (ii) Base Rate Loans is 2.75% based on the current Consolidated Leverage Ratio. The Credit Agreement also requires the Borrowers to pay a quarterly 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 Credit Agreement contains financial covenants, pursuant to which the Borrowers and the Guarantors will not permit:

 

    Consolidated EBITDA for any Measurement Period to be less than the sum of (i) $80.0 million plus (ii) 80% of the aggregate of all Consolidated EBITDA for each Permitted Acquisition completed after June 30, 2014;

 

    the Consolidated Debt Service Coverage Ratio to be less than 2.50 to 1.0 for any Measurement Period; and

 

    the Consolidated Leverage Ratio to be greater than 4.00 to 1.0 for any period.

The covenants include, among other limitations, limitations on: (i) liens, (ii) the creation or incurrence of debt, (iii) investments and acquisitions, (iv) dispositions of property, (v) dividends, distributions and redemptions, and (vi) transactions with Affiliates.

The Credit Agreement provides that two types of draws are permitted with respect to the Credit Facility: Acquisition Draws and Working Capital Draws. The proceeds of Acquisition Draws may be utilized by the Borrowers to finance Permitted Acquisitions, the purchase and construction of mausoleums and related costs or the net amount of Merchandise Trust deposits made after the Closing Date under the Credit Agreement, irrespective of whether such amounts relate to new or existing cemeteries or funeral homes. The proceeds of Working Capital Draws, Letters of Credit and Swing Line Loans may be utilized by the Borrowers to finance working capital requirements, Capital Expenditures and for other general corporate purposes. The borrowing of Working Capital Advances is subject to a borrowing formula of 85% of Eligible Receivables. This limit was $133.0 million at March 31, 2015.

Each Acquisition Draw is subject to equal quarterly amortization of the principal amount of such draw, with annual principal payments comprised of ten percent (10%) of the related draw amount, commencing on the second anniversary of such draw, with the remaining principal due on the Maturity Date, subject to certain mandatory prepayment requirements. Working Capital Draws are due on the Maturity Date, subject to certain mandatory prepayment requirements.

As of March 31, 2015, there were $122.9 million of outstanding borrowings under the Credit Facility. The Credit Facility approximates fair value as it consists of multiple current LIBOR borrowings with maturities of 90 days or less, with amounts that can be rolled-over or reborrowed at market rates. It is valued using Level 2 inputs. As of March 31, 2015, the Company complied 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, 2015, the Company’s taxable corporate subsidiaries had federal net operating loss carryforwards of approximately $223.1 million, which will begin to expire in 2017 and $272.0 million in state net operating loss carryforwards, 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, 2015 and 2014 is based upon the estimated annual effective tax rates expected to be applicable to the Company for 2015 and 2014, respectively. The Company’s effective tax rate differs from its statutory tax rate primarily because the Company’s legal entity structure includes different tax filing entities, including a significant number of partnerships that are not subject to paying tax.

The Company is not currently under examination by any federal or state jurisdictions. The federal statute of limitations and certain state statutes of limitations are open from 2011 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, 2015 and December 31, 2014, deferred cemetery revenues, net, consisted of the following:

 

     As of  
     March 31,
2015
     December 31,
2014
 
     (in thousands)  

Deferred cemetery revenue

   $ 477,420       $ 456,632   

Deferred merchandise trust revenue

     116,678         104,717   

Deferred merchandise trust unrealized gains (losses)

     (8,356      2,284   

Deferred pre-acquisition margin

     139,344         140,378   

Deferred cost of goods sold

     (63,209      (60,603
  

 

 

    

 

 

 

Deferred cemetery revenues, net

$ 661,877    $ 643,408   
  

 

 

    

 

 

 

Deferred selling and obtaining costs

$ 102,904    $ 97,795   

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, 2015, 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 these operating leases were $0.7 million and $0.6 million during the three months ended March 31, 2015 and 2014, respectively.

The operating leases will result in future payments in the following approximate amounts from March 31, 2015 and beyond:

 

     (in thousands)  

2015

   $ 2,000   

2016

     2,444   

2017

     2,305   

2018

     1,912   

2019

     1,726   

2020

     613   

Thereafter

     1,744   
  

 

 

 

Total

$ 12,744   
  

 

 

 

Other

See Note 13 of the Company’s 2014 Form 10-K for a discussion of the Company’s future commitments related to its agreements with the Archdiocese of Philadelphia.

PARTNERS' CAPITAL
PARTNERS' CAPITAL
12. PARTNERS’ CAPITAL

The table below reflects the activity relating to the number of common units outstanding for the three months ended March 31, 2015:

 

     Three months ended
March 31, 2015
 

Outstanding, beginning of period

     29,203,595   

Unit distributions

     54,622   

Unit-based compensation

     1,148   
  

 

 

 

Outstanding, end of period

  29,259,365   
  

 

 

 

Unit-Based Compensation

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

Compensation expense recognized related to unit appreciation rights and restricted phantom unit awards for the three months ended March 31, 2015 and 2014 are summarized in the table below:

 

     Three months ended
March 31,
 
     2015      2014  
     (in thousands)  

Unit appreciation rights

   $ 21       $ 19   

Restricted phantom units

     251         252   
  

 

 

    

 

 

 

Total unit-based compensation expense

$ 272    $ 271   
  

 

 

    

 

 

 

As of March 31, 2015, there was approximately $0.1 million in non-vested unit appreciation rights expense outstanding. These unit appreciation rights will be expensed through 2018.

The diluted weighted average number of limited partners’ units outstanding presented on the unaudited condensed consolidated statement of operations does not include 185,194 units for the three months ended March 31, 2015, as their effects would be anti-dilutive.

During the three months ended March 31, 2015, 1,148 common units were issued under the StoneMor Partners L.P. Long-Term Incentive Plans. See Note 11 of the Company’s 2014 Form 10-K for a description of the Company’s Long-Term Incentive Plans.

 

Other Unit Issuances

Pursuant to a Common Unit Purchase Agreement, dated May 19, 2014, by and between the Company and American Cemeteries Infrastructure Investors, LLC, a Delaware limited liability company (“ACII”), the Company issued 54,622 common units to ACII in lieu of a cash distribution of approximately $1.4 million on February 16, 2015. Refer to the Company’s 2014 Form 10-K, Note 17, for a detailed discussion of the Common Unit Purchase Agreement.

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 final assessment of the fair value of net assets acquired and the resulting gain on bargain purchase.

 

     Final
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   
  

 

 

 

If the acquisition noted above 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, 2015 and 2014, consolidated revenues, consolidated net income (loss), and net income (loss) per limited partner unit (basic and diluted) would have been as follows:

 

     Three months ended March 31,  
     2015      2014  
     (in thousands, except per unit data)  

Revenue

   $ 67,417       $ 64,398   

Net income (loss)

     (8,883      (2

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

   $ (.30    $ —     

These pro forma results are unaudited, have been prepared for comparative purposes only, and may include certain adjustments such as increased interest on the acquisition of debt, changes in the timing of financing events and the recognition of gains on acquisitions. They do not purport to be indicative of the results of operations which actually would have resulted had this acquisition been in effect at the beginning of the comparable prior annual reporting period or of future results of operations of the location.

The property acquired in the first quarter of 2014 has contributed less than $0.1 million of revenue and operating profit for both the three months ended March 31, 2015 and the three months ended March 31, 2014.

Other 2014 Acquisitions and Agreements

See Note 13 of the Company’s 2014 Form 10-K for a discussion of the Company’s other 2014 acquisitions and its agreements with the Archdiocese of Philadelphia. There have been no changes during the period to assessments of the fair value of net assets acquired in the other 2014 acquisitions. Those amounts may be retrospectively adjusted as additional information is received.

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, 2015:

 

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

Revenues

                  

Sales

   $ 24,290       $ 12,485       $ 10,695       $ —         $ —        $ (17,526   $ 29,944   

Service and other

     11,886         8,759         9,000         —           —          (7,432     22,213   

Funeral home

     —           —           —           17,415         —          (2,155     15,260   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

  36,176      21,244      19,695      17,415      —        (27,113   67,417   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Costs and expenses

Cost of sales

  5,268      2,329      2,140      —        —        (2,654   7,083   

Cemetery

  6,834      5,853      3,578      —        —        —        16,265   

Selling

  9,147      5,005      4,152      —        200      (4,594   13,910   

General and administrative

  4,670      2,540      2,119      —        —        —        9,329   

Corporate overhead

  —        —        —        —        8,734      —        8,734   

Depreciation and amortization

  800      607      499      799      247      —        2,952   

Funeral home

  —        —        —        12,611      —        (461   12,150   

Acquisition related costs, net of recoveries

  —        —        —        —        349      —        349   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total costs and expenses

  26,719      16,334      12,488      13,410      9,530      (7,709   70,772   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating profit (loss)

$ 9,457    $ 4,910    $ 7,207    $ 4,005    $ (9,530 $ (19,404 $ (3,355
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

$ 645,407    $ 428,673    $ 444,411    $ 165,828    $ 21,034    $ —      $ 1,705,353   

Amortization of cemetery property

$ 1,130    $ 485    $ 390    $ —      $ —      $ (417 $ 1,588   

Long lived asset additions

$ 1,505    $ 746    $ 497    $ 218    $ 84    $ —      $ 3,050   

Goodwill

$ 8,950    $ 3,288    $ 11,948    $ 34,650    $ —      $ —      $ 58,836   

 

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

 

     Cemeteries      Funeral
Homes
                    
     Southeast      Northeast      West         Corporate     Adjustment     Total  
     (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 (loss)

$ 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   

Results of individual operating segments 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 operating segments are not necessarily comparable with similar information for any other company. The management accounting process uses assumptions and allocations to measure performance of the operating segments. 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 and publicly traded equity securities and mutual funds in its level 1 investments.

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

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

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, 2015 and December 31, 2014.

 

As of March 31, 2015

Merchandise Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 31,591       $ —         $ 31,591   

Fixed maturities:

        

U.S. state and local government agency

     —           80         80   

Corporate debt securities

     —           12,257         12,257   

Other debt securities

     —           7,174         7,174   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

  —        19,511      19,511   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  238,699      —        238,699   

Mutual funds - equity securities - real estate sector

  19,133      —        19,133   

Mutual funds - equity securities - energy sector

  12,815      —        12,815   

Mutual funds - equity securities - MLP’s

  21,308      —        21,308   

Mutual funds - equity securities - other

  77,390      —        77,390   

Equity securities:

Master limited partnerships

  25,224      —        25,224   

Global equity securities

  28,828      —        28,828   

Other invested assets

  —        5,126      5,126   
  

 

 

    

 

 

    

 

 

 

Total

$ 454,988    $ 24,637    $ 479,625   
  

 

 

    

 

 

    

 

 

 

Perpetual Care Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 30,012       $ —         $ 30,012   

Fixed maturities:

        

U.S. government and federal agency

     115         —           115   

U.S. state and local government agency

     —           28         28   

Corporate debt securities

     —           24,216         24,216   

Other debt securities

     —           371         371   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

  115      24,615      24,730   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  198,056      —        198,056   

Mutual funds - equity securities - real estate sector

  17,052      —        17,052   

Mutual funds - equity securities - energy sector

  20,424      —        20,424   

Mutual funds - equity securities - MLP’s

  40,474      —        40,474   

Mutual funds - equity securities - other

  11,807      —        11,807   

Equity securities:

Master limited partnerships

  988      —        988   

Global equity securities

  1,633      —        1,633   

Other invested assets

  —        7      7   
  

 

 

    

 

 

    

 

 

 

Total

$ 320,561    $ 24,622    $ 345,183   
  

 

 

    

 

 

    

 

 

 

 

As of December 31, 2014

Merchandise Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 52,521       $ —         $ 52,521   

Fixed maturities:

        

U.S. state and local government agency

     —           269         269   

Corporate debt securities

     —           8,976         8,976   

Other debt securities

     —           7,139         7,139   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

  —        16,384      16,384   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  142,680      —        142,680   

Mutual funds - equity securities - real estate sector

  58,672      —        58,672   

Mutual funds - equity securities - energy sector

  7,733      —        7,733   

Mutual funds - equity securities - MLP’s

  22,927      —        22,927   

Mutual funds - equity securities - other

  90,126      —        90,126   

Equity securities:

Master limited partnerships

  50,091      —        50,091   

Global equity securities

  30,208      —        30,208   

Other invested assets

  —        5,159      5,159   
  

 

 

    

 

 

    

 

 

 

Total

$ 454,958    $ 21,543    $ 476,501   
  

 

 

    

 

 

    

 

 

 

Perpetual Care Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 26,644       $ —         $ 26,644   

Fixed maturities:

        

U.S. government and federal agency

     116         —           116   

U.S. state and local government agency

     —           79         79   

Corporate debt securities

     —           23,466         23,466   

Other debt securities

     —           371         371   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

  116      23,916      24,032   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  123,894      —        123,894   

Mutual funds - equity securities - real estate sector

  41,753      —        41,753   

Mutual funds - equity securities - energy sector

  14,829      —        14,829   

Mutual funds - equity securities - MLP’s

  43,596      —        43,596   

Mutual funds - equity securities - other

  25,258      —        25,258   

Equity securities:

Master limited partnerships

  43,207      —        43,207   

Global equity securities

  1,867      —        1,867   

Other invested assets

  —        25      25   
  

 

 

    

 

 

    

 

 

 

Total

$ 321,164    $ 23,941    $ 345,105   
  

 

 

    

 

 

    

 

 

 

Level 1 securities primarily consist of actively publicly traded money market funds, mutual funds and equity securities.

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.

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, 2015, the Partnership operated 303 cemeteries in 27 states and Puerto Rico, of which 272 are owned and 31 are operated under lease, management or operating agreements. The Partnership also owned and operated 98 funeral homes in 19 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, 2015 and for the three months ended March 31, 2015 and 2014 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, 2014 condensed consolidated balance sheet data was derived from audited financial statements included in the Company’s 2014 Annual Report on Form 10-K (“2014 Form 10-K”), but does not include all disclosures required by GAAP, which are presented in the Company’s 2014 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 31 cemeteries under long-term lease, 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 15 cemeteries under long-term lease, operating or management agreements that do not qualify as acquisitions for accounting purposes, including 13 cemeteries related to the transaction with the Archdiocese of Philadelphia that closed in the second quarter of 2014. 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 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 lease, operating or management 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.

New Accounting Pronouncements

In the second quarter of 2014, the Financial Accounting Standards Board issued Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which supersedes the revenue recognition requirements in “Topic 605 - Revenue Recognition” and most industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. On April 29, 2015, the Financial Accounting Standards Board issued for public comment a proposed update that would defer the effective date of ASU 2014-09 by one year. The Company is currently in the process of evaluating the potential impact of this update on its financial statements.

In the first quarter of 2015, the Financial Accounting Standards Board issued Update No. 2015-02, “Consolidation (Topic 810)” (“ASU 2015-02”), which amends previous consolidation analysis guidance. ASU 2015-02 requires companies to consider revised consolidation criteria regarding limited partnerships and similar legal entities. The amendments are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early application is permitted. The Company is currently in the process of evaluating the impact of this update, which is not expected to have a significant impact on the Company’s financial position, results of operations, or cash flows.

In the second quarter of 2015, the Financial Accounting Standards Board issued Update No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”), which changes the presentation of debt issuance costs. ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. The amendments in the update are effective for annual reporting periods beginning after December 15, 2015, including interim periods within those reporting periods. Early application is permitted. The Company is currently in the process of evaluating the impact of this update, which is not expected to have a significant impact on its financial position, results of operations, or cash flows.

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, assets and liabilities obtained via business combinations 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, consists of the following:

 

     As of  
     March 31,
2015
     December 31,
2014
 
     (in thousands)  

Customer receivables

   $ 200,643       $ 194,537   

Unearned finance income

     (20,911      (20,360

Allowance for contract cancellations

     (23,215      (22,138
  

 

 

    

 

 

 
  156,517      152,039   

Less: current portion, net of allowance

  65,429      62,503   
  

 

 

    

 

 

 

Long-term portion, net of allowance

$ 91,088    $ 89,536   
  

 

 

    

 

 

 

Activity in the allowance for contract cancellations is as follows:

 

     For the three months ended March 31,  
     2015      2014  
     (in thousands)  

Balance - Beginning of period

   $ 22,138       $ 20,275   

Provision for cancellations

     6,072         5,031   

Charge-offs - net

     (4,995      (4,057
  

 

 

    

 

 

 

Balance - End of period

$ 23,215    $ 21,249   
  

 

 

    

 

 

 
PROPERTY AND EQUIPMENT (Tables)

Major classes of property and equipment follow:

 

     As of  
     March 31,
2015
     December 31,
2014
 
     (in thousands)  

Building and improvements

   $ 108,615       $ 108,178   

Furniture and equipment

     50,019         49,290   
  

 

 

    

 

 

 
  158,634      157,468   

Less: accumulated depreciation

  (59,065   (57,077
  

 

 

    

 

 

 

Property and equipment - net

$ 99,569    $ 100,391   
  

 

 

    

 

 

 

Cemetery property consists of the following:

 

     As of  
     March 31,
2015
     December 31,
2014
 
     (in thousands)  

Developed land

   $ 79,134       $ 79,058   

Undeveloped land

     172,141         172,238   

Mausoleum crypts and lawn crypts

     78,518         78,524   

Other land

     10,028         10,028   
  

 

 

    

 

 

 

Total

$ 339,821    $ 339,848   
  

 

 

    

 

 

 
MERCHANDISE TRUSTS (Tables) (Variable Interest Entity, Primary Beneficiary)

The cost and market value associated with the assets held in the merchandise trusts at March 31, 2015 and December 31, 2014 were as follows:

 

As of March 31, 2015

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

Short-term investments

   $ 31,591       $ —         $ —         $ 31,591   

Fixed maturities:

           

U.S. State and local government agency

     65         15         —           80   

Corporate debt securities

     12,566         67         (376      12,257   

Other debt securities

     7,182         —           (8      7,174   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

  19,813      82      (384   19,511   
  

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  246,768      978      (9,047   238,699   

Mutual funds - equity securities

  129,452      2,772      (1,578   130,646   

Equity securities

  54,888      3,500      (4,336   54,052   

Other invested assets

  5,469      —        (343   5,126   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total managed investments

$ 487,981    $ 7,332    $ (15,688 $ 479,625   
  

 

 

    

 

 

    

 

 

    

 

 

 

West Virginia Trust Receivable

  8,382      —        —        8,382   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 496,363    $ 7,332    $ (15,688 $ 488,007   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

As of December 31, 2014

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

Short-term investments

   $ 52,521       $ —         $ —         $ 52,521   

Fixed maturities:

           

U.S. State and local government agency

     270         —           (1      269   

Corporate debt securities

     9,400         23         (447      8,976   

Other debt securities

     7,157         —           (18      7,139   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

  16,827      23      (466   16,384   
  

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  150,477      869      (8,666   142,680   

Mutual funds - equity securities

  167,353      12,568      (463   179,458   

Equity securities

  81,639      4,167      (5,507   80,299   

Other invested assets

  5,400      —        (241   5,159   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total managed investments

$ 474,217    $ 17,627    $ (15,343 $ 476,501   
  

 

 

    

 

 

    

 

 

    

 

 

 

West Virginia Trust Receivable

  8,319      —        —        8,319   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 482,536    $ 17,627    $ (15,343 $ 484,820   
  

 

 

    

 

 

    

 

 

    

 

 

 

The contractual maturities of debt securities as of March 31, 2015 are presented below:

 

As of March 31, 2015

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

U.S. State and local government agency

   $ —         $ 18       $ 60       $ 2   

Corporate debt securities

     —           7,052         5,205         —     

Other debt securities

     891         6,283         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

$ 891    $ 13,353    $ 5,265    $ 2   
  

 

 

    

 

 

    

 

 

    

 

 

 

An aging of unrealized losses on the Company’s investments in fixed maturities and equity securities at March 31, 2015 and December 31, 2014 is presented below:

 

     Less than 12 months      12 Months or more      Total      Number of
Securities in
Loss Position
 

As of March 31, 2015

   Fair
Value
     Unrealized
Losses
     Fair
Value
     Unrealized
Losses
     Fair
Value
     Unrealized
Losses
    
     (in thousands, except number of securities data)  

Fixed maturities:

                    

Corporate debt securities

   $ 6,070       $ 214       $ 2,539       $ 162       $ 8,609       $ 376         46   

Other debt securities

     2,384         2         4,790         6         7,174         8         13   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

  8,454      216      7,329      168      15,783      384      59   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  87,042      617      132,090      8,430      219,132      9,047      28   

Mutual funds - equity securities

  49,100      1,578      —        —        49,100      1,578      4   

Equity securities

  26,285      3,671      3,511      665      29,796      4,336      56   

Other invested assets

  —        —        4,918      343      4,918      343      1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 170,881    $ 6,082    $ 147,848    $ 9,606    $ 318,729    $ 15,688      148   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     Less than 12 months      12 Months or more      Total      Number of
Securities in
Loss Position
 

As of December 31, 2014

   Fair
Value
     Unrealized
Losses
     Fair
Value
     Unrealized
Losses
     Fair
Value
     Unrealized
Losses
    
     (in thousands, except number of securities data)  

Fixed maturities:

                    

U.S. State and local government agency

   $ 143       $ 1       $ —         $ —         $ 143       $ 1         3   

Corporate debt securities

     5,905         342         1,506         105         7,411         447         58   

Other debt securities

     2,370         8         4,769         10         7,139         18         13   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

  8,418      351      6,275      115      14,693      466      74   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  32,072      1,039      95,629      7,627      127,701      8,666      34   

Mutual funds - equity securities

  4,147      463      —        —        4,147      463      2   

Equity securities

  44,563      4,641      3,909      866      48,472      5,507      60   

Other invested assets

  —        —        4,881      241      4,881      241      1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 89,200    $ 6,494    $ 110,694    $ 8,849    $ 199,894    $ 15,343      171   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

A reconciliation of the Company’s merchandise trust activities for the three months ended March 31, 2015 is presented below:

 

Fair

Value at
12/31/2014

 

Contributions

 

Distributions

 

Interest/
Dividends

 

Capital

Gain
Distributions

 

Realized
Gain/

Loss (1)

 

Taxes

 

Fees

 

Unrealized
Change in
Fair Value

 

Fair

Value at
3/31/2015

(in thousands)

$484,820

  16,540   (11,537)   3,874   —     5,702   (15)   (737)   (10,640)   $488,007

 

(1) Includes $3.9 million representing the net effect of other-than-temporary impairment charges and the release of previously realized impairment charges, as a result of sales and maturities of impaired securities.

The cost and market value associated with the assets held in the perpetual care trusts at March 31, 2015 and December 31, 2014 were as follows:

 

As of March 31, 2015

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

Short-term investments

   $ 30,012       $ —         $ —         $ 30,012   

Fixed maturities:

           

U.S. Government and federal agency

     100         15         —           115   

U.S. State and local government agency

     27         1         —           28   

Corporate debt securities

     24,774         224         (782      24,216   

Other debt securities

     371         —           —           371   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

  25,272      240      (782   24,730   
  

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  202,419      414      (4,777   198,056   

Mutual funds - equity securities

  77,034      12,763      (40   89,757   

Equity securities

  2,167      489      (35   2,621   

Other invested assets

  7      —        —        7   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 336,911    $ 13,906    $ (5,634 $ 345,183   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

As of December 31, 2014

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

Short-term investments

   $ 26,644       $ —         $ —         $ 26,644   

Fixed maturities:

           

U.S. Government and federal agency

     100         16         —           116   

U.S. State and local government agency

     78         1         —           79   

Corporate debt securities

     24,275         104         (913      23,466   

Other debt securities

     371         —           —           371   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

  24,824      121      (913   24,032   
  

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  128,735      379      (5,220   123,894   

Mutual funds - equity securities

  103,701      23,003      (1,268   125,436   

Equity securities

  30,617      14,704      (247   45,074   

Other invested assets

  25      —        —        25   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 314,546    $ 38,207    $ (7,648 $ 345,105   
  

 

 

    

 

 

    

 

 

    

 

 

 

The contractual maturities of debt securities as of March 31, 2015 were as follows:

 

As of March 31, 2015

   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

   $ —         $ 115       $ —         $ —     

U.S. State and local government agency

     28         —           —           —     

Corporate debt securities

     455         14,723         9,018         20   

Other debt securities

     371         —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

$ 854    $ 14,838    $ 9,018    $ 20   
  

 

 

    

 

 

    

 

 

    

 

 

 

An aging of unrealized losses on the Company’s investments in fixed maturities and equity securities at March 31, 2015 and December 31, 2014 is presented below:

 

     Less than 12 months      12 Months or more      Total      Number of
Securities in
Loss Position
 

As of March 31, 2015

   Fair
Value
     Unrealized
Losses
     Fair
Value
     Unrealized
Losses
     Fair
Value
     Unrealized
Losses
    
     (in thousands, except number of securities data)  

Fixed maturities:

                    

Corporate debt securities

   $ 10,571       $ 516       $ 3,861       $ 266       $ 14,432       $ 782         55   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

  10,571      516      3,861      266      14,432      782      55   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  18,437      529      119,177      4,248      137,614      4,777      30   

Mutual funds - equity securities

  3,458      40      —        —        3,458      40      2   

Equity securities

  237      32      619      3      856      35      25   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 32,703    $ 1,117    $ 123,657    $ 4,517    $ 156,360    $ 5,634      112   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     Less than 12 months      12 Months or more      Total      Number of
Securities in
Loss Position
 

As of December 31, 2014

   Fair
Value
     Unrealized
Losses
     Fair
Value
     Unrealized
Losses
     Fair
Value
     Unrealized
Losses
    
     (in thousands, except number of securities data)  

Fixed maturities:

                    

Corporate debt securities

   $ 14,434       $ 798       $ 2,519       $ 115       $ 16,953       $ 913         83   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

  14,434      798      2,519      115      16,953      913      83   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  30,345      768      86,814      4,452      117,159      5,220      31   

Mutual funds - equity securities

  13,035      1,268      —        —        13,035      1,268      5   

Equity securities

  3,866      245      620      2      4,486      247      29   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 61,680    $ 3,079    $ 89,953    $ 4,569    $ 151,633    $ 7,648      148   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

A reconciliation of the Company’s perpetual care trust activities for the three months ended March 31, 2015 is presented below:

 

Fair
Value at
12/31/2014

   Contributions      Distributions     Interest/
Dividends
     Capital
Gain
Distributions
     Realized
Gain/
Loss (1)
     Taxes     Fees     Unrealized
Change in
Fair Value
    Fair
Value at
3/31/2015
 
(in thousands)  

$345,105

     6,478         (2,793     3,649         —           15,699         (134     (534     (22,287   $ 345,183   

 

(1) Includes $12.0 million representing the net effect of other-than-temporary impairment charges and the release of previously realized impairment charges, as a result of sales and maturities of impaired securities.
GOODWILL AND INTANGIBLE ASSETS (Tables)

There have been no changes in the goodwill balance during the period and a summary by reportable segment is as follows:

 

     Cemeteries      Funeral
Homes
    

 

 
     Southeast      Northeast      West         Total  
     (in thousands)  

Goodwill as of March 31, 2015 and December 31, 2014

   $ 8,950       $ 3,288       $ 11,948       $ 34,650       $ 58,836   

The major classes of intangible assets are as follows:

 

     As of March 31, 2015      As of December 31, 2014  
     Gross Carrying
Amount
     Accumulated
Amortization
    Net Intangible
Asset
     Gross Carrying
Amount
     Accumulated
Amortization
    Net Intangible
Asset
 
     (in thousands)  

Amortized intangible assets:

               

Lease and management agreements

   $ 59,758       $ (830   $ 58,928       $ 59,758       $ (581   $ 59,177   

Underlying contract value

     6,239         (897     5,342         6,239         (858     5,381   

Non-compete agreements

     5,250         (2,375     2,875         5,250         (2,126     3,124   

Other intangible assets

     1,439         (143     1,296         1,439         (131     1,308   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total intangible assets

$ 72,686    $ (4,245 $ 68,441    $ 72,686    $ (3,696 $ 68,990   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 
LONG-TERM DEBT (Tables)
Outstanding Debt

The Company had the following outstanding debt:

 

     As of  
     March 31,
2015
     December 31,
2014
 
     (in thousands)  

7.875% Senior Notes, due June 2021

   $ 175,000       $ 175,000   

Credit Facility, due December 2019:

     

Working Capital Draws

     97,902         85,902   

Acquisition Draws

     25,000         25,000   

Notes payable - acquisition debt

     819         861   

Notes payable - acquisition non-competes

     2,396         2,765   

Insurance and vehicle financing

     1,121         1,632   
  

 

 

    

 

 

 

Total

  302,238      291,160   

Less current portion

  1,664      2,251   

Less unamortized bond and note payable discounts

  3,390      3,531   
  

 

 

    

 

 

 

Long-term portion

$ 297,184    $ 285,378   
  

 

 

    

 

 

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

At March 31, 2015 and December 31, 2014, deferred cemetery revenues, net, consisted of the following:

 

     As of  
     March 31,
2015
     December 31,
2014
 
     (in thousands)  

Deferred cemetery revenue

   $ 477,420       $ 456,632   

Deferred merchandise trust revenue

     116,678         104,717   

Deferred merchandise trust unrealized gains (losses)

     (8,356      2,284   

Deferred pre-acquisition margin

     139,344         140,378   

Deferred cost of goods sold

     (63,209      (60,603
  

 

 

    

 

 

 

Deferred cemetery revenues, net

$ 661,877    $ 643,408   
  

 

 

    

 

 

 

Deferred selling and obtaining costs

$ 102,904    $ 97,795   
COMMITMENTS AND CONTINGENCIES (Tables)
Operating Leases Future Payments

The operating leases will result in future payments in the following approximate amounts from March 31, 2015 and beyond:

 

     (in thousands)  

2015

   $ 2,000   

2016

     2,444   

2017

     2,305   

2018

     1,912   

2019

     1,726   

2020

     613   

Thereafter

     1,744   
  

 

 

 

Total

$ 12,744   
  

 

 

 
PARTNERS' CAPITAL (Tables)

The table below reflects the activity relating to the number of common units outstanding for the three months ended March 31, 2015:

 

     Three months ended
March 31, 2015
 

Outstanding, beginning of period

     29,203,595   

Unit distributions

     54,622   

Unit-based compensation

     1,148   
  

 

 

 

Outstanding, end of period

  29,259,365   
  

 

 

 

Compensation expense recognized related to unit appreciation rights and restricted phantom unit awards for the three months ended March 31, 2015 and 2014 are summarized in the table below:

 

     Three months ended
March 31,
 
     2015      2014  
     (in thousands)  

Unit appreciation rights

   $ 21       $ 19   

Restricted phantom units

     251         252   
  

 

 

    

 

 

 

Total unit-based compensation expense

$ 272    $ 271   
  

 

 

    

 

 

 
ACQUISITIONS (Tables)

If the acquisition noted above 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, 2015 and 2014, consolidated revenues, consolidated net income (loss), and net income (loss) per limited partner unit (basic and diluted) would have been as follows:

 

     Three months ended March 31,  
     2015      2014  
     (in thousands, except per unit data)  

Revenue

   $ 67,417       $ 64,398   

Net income (loss)

     (8,883      (2

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

   $ (.30    $ —     

The table below reflects the Company’s final assessment of the fair value of net assets acquired and the resulting gain on bargain purchase.

 

     Final
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   
  

 

 

 
SEGMENT INFORMATION (Tables)
Segment Information

Segment information is as follows:

As of and for the three months ended March 31, 2015:

 

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

Revenues

                  

Sales

   $ 24,290       $ 12,485       $ 10,695       $ —         $ —        $ (17,526   $ 29,944   

Service and other

     11,886         8,759         9,000         —           —          (7,432     22,213   

Funeral home

     —           —           —           17,415         —          (2,155     15,260   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

  36,176      21,244      19,695      17,415      —        (27,113   67,417   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Costs and expenses

Cost of sales

  5,268      2,329      2,140      —        —        (2,654   7,083   

Cemetery

  6,834      5,853      3,578      —        —        —        16,265   

Selling

  9,147      5,005      4,152      —        200      (4,594   13,910   

General and administrative

  4,670      2,540      2,119      —        —        —        9,329   

Corporate overhead

  —        —        —        —        8,734      —        8,734   

Depreciation and amortization

  800      607      499      799      247      —        2,952   

Funeral home

  —        —        —        12,611      —        (461   12,150   

Acquisition related costs, net of recoveries

  —        —        —        —        349      —        349   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total costs and expenses

  26,719      16,334      12,488      13,410      9,530      (7,709   70,772   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating profit (loss)

$ 9,457    $ 4,910    $ 7,207    $ 4,005    $ (9,530 $ (19,404 $ (3,355
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

$ 645,407    $ 428,673    $ 444,411    $ 165,828    $ 21,034    $ —      $ 1,705,353   

Amortization of cemetery property

$ 1,130    $ 485    $ 390    $ —      $ —      $ (417 $ 1,588   

Long lived asset additions

$ 1,505    $ 746    $ 497    $ 218    $ 84    $ —      $ 3,050   

Goodwill

$ 8,950    $ 3,288    $ 11,948    $ 34,650    $ —      $ —      $ 58,836   

 

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

 

     Cemeteries      Funeral
Homes
                    
     Southeast      Northeast      West         Corporate     Adjustment     Total  
     (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 (loss)

$ 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   
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, 2015 and December 31, 2014.

 

As of March 31, 2015

Merchandise Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 31,591       $ —         $ 31,591   

Fixed maturities:

        

U.S. state and local government agency

     —           80         80   

Corporate debt securities

     —           12,257         12,257   

Other debt securities

     —           7,174         7,174   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

  —        19,511      19,511   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  238,699      —        238,699   

Mutual funds - equity securities - real estate sector

  19,133      —        19,133   

Mutual funds - equity securities - energy sector

  12,815      —        12,815   

Mutual funds - equity securities - MLP’s

  21,308      —        21,308   

Mutual funds - equity securities - other

  77,390      —        77,390   

Equity securities:

Master limited partnerships

  25,224      —        25,224   

Global equity securities

  28,828      —        28,828   

Other invested assets

  —        5,126      5,126   
  

 

 

    

 

 

    

 

 

 

Total

$ 454,988    $ 24,637    $ 479,625   
  

 

 

    

 

 

    

 

 

 

Perpetual Care Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 30,012       $ —         $ 30,012   

Fixed maturities:

        

U.S. government and federal agency

     115         —           115   

U.S. state and local government agency

     —           28         28   

Corporate debt securities

     —           24,216         24,216   

Other debt securities

     —           371         371   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

  115      24,615      24,730   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  198,056      —        198,056   

Mutual funds - equity securities - real estate sector

  17,052      —        17,052   

Mutual funds - equity securities - energy sector

  20,424      —        20,424   

Mutual funds - equity securities - MLP’s

  40,474      —        40,474   

Mutual funds - equity securities - other

  11,807      —        11,807   

Equity securities:

Master limited partnerships

  988      —        988   

Global equity securities

  1,633      —        1,633   

Other invested assets

  —        7      7   
  

 

 

    

 

 

    

 

 

 

Total

$ 320,561    $ 24,622    $ 345,183   
  

 

 

    

 

 

    

 

 

 

 

As of December 31, 2014

Merchandise Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 52,521       $ —         $ 52,521   

Fixed maturities:

        

U.S. state and local government agency

     —           269         269   

Corporate debt securities

     —           8,976         8,976   

Other debt securities

     —           7,139         7,139   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

  —        16,384      16,384   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  142,680      —        142,680   

Mutual funds - equity securities - real estate sector

  58,672      —        58,672   

Mutual funds - equity securities - energy sector

  7,733      —        7,733   

Mutual funds - equity securities - MLP’s

  22,927      —        22,927   

Mutual funds - equity securities - other

  90,126      —        90,126   

Equity securities:

Master limited partnerships

  50,091      —        50,091   

Global equity securities

  30,208      —        30,208   

Other invested assets

  —        5,159      5,159   
  

 

 

    

 

 

    

 

 

 

Total

$ 454,958    $ 21,543    $ 476,501   
  

 

 

    

 

 

    

 

 

 

Perpetual Care Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 26,644       $ —         $ 26,644   

Fixed maturities:

        

U.S. government and federal agency

     116         —           116   

U.S. state and local government agency

     —           79         79   

Corporate debt securities

     —           23,466         23,466   

Other debt securities

     —           371         371   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

  116      23,916      24,032   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

  123,894      —        123,894   

Mutual funds - equity securities - real estate sector

  41,753      —        41,753   

Mutual funds - equity securities - energy sector

  14,829      —        14,829   

Mutual funds - equity securities - MLP’s

  43,596      —        43,596   

Mutual funds - equity securities - other

  25,258      —        25,258   

Equity securities:

Master limited partnerships

  43,207      —        43,207   

Global equity securities

  1,867      —        1,867   

Other invested assets

  —        25      25   
  

 

 

    

 

 

    

 

 

 

Total

$ 321,164    $ 23,941    $ 345,105   
  

 

 

    

 

 

    

 

 

 
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail)
Mar. 31, 2015
State
Property
US and Puerto Rico |
Cemetery
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
303 
Number of states
27 
US and Puerto Rico |
Funeral Home
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
98 
Number of states
19 
Managed Properties |
Cemetery property
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
31 
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
15 
Managed Properties |
Unconsolidated Properties |
Cemetery property |
Second Quarter 2014 Acquisition
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
13 
Managed Properties |
US and Puerto Rico |
Cemetery
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
31 
Wholly Owned Properties |
US and Puerto Rico |
Cemetery
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
272 
Long-Term Accounts Receivable Net (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Customer receivables
$ 200,643 
$ 194,537 
Unearned finance income
(20,911)
(20,360)
Allowance for contract cancellations
(23,215)
(22,138)
Accounts Receivable, Net, Total
156,517 
152,039 
Less: current portion, net of allowance
65,429 
62,503 
Long-term portion, net of allowance
91,088 
89,536 
Accounts Receivable, Net
$ 156,517 
$ 152,039 
Activity in Allowance for Contract Cancellations (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Mar. 31, 2015
Contract Cancellations
Mar. 31, 2014
Contract Cancellations
Valuation and Qualifying Accounts Disclosure [Line Items]
 
 
 
 
Balance - Beginning of period
$ 23,215 
$ 22,138 
$ 22,138 
$ 20,275 
Provision for cancellations
 
 
6,072 
5,031 
Charge-offs - net
 
 
(4,995)
(4,057)
Balance - End of period
$ 23,215 
$ 22,138 
$ 23,215 
$ 21,249 
Cemetery Property (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
$ 339,821 
$ 339,848 
Developed land
 
 
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
79,134 
79,058 
Undeveloped land
 
 
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
172,141 
172,238 
Mausoleum crypts and lawn crypts
 
 
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
78,518 
78,524 
Other Land
 
 
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
$ 10,028 
$ 10,028 
Major Classes of Property and Equipment (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Property, Plant and Equipment [Line Items]
 
 
Building and improvements
$ 108,615 
$ 108,178 
Furniture and equipment
50,019 
49,290 
Property, Plant and Equipment, Gross, Total
158,634 
157,468 
Less: accumulated depreciation
(59,065)
(57,077)
Property and equipment - net
$ 99,569 
$ 100,391 
Property and Equipment - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Depreciation expense
$ 2.4 
$ 2.0 
Merchandise Trusts - Additional Information (Detail) (Variable Interest Entity, Primary Beneficiary, Merchandise Trusts, USD $)
3 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2015
Securities
Dec. 31, 2014
Securities
Mar. 31, 2014
Other Than Temporarily Impaired Securities
Mar. 31, 2015
West Virginia Trust Receivable
Dec. 31, 2014
West Virginia Trust Receivable
Mar. 31, 2015
Determined for Two securities
Other Than Temporarily Impaired Securities
Property
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
 
 
Trust assets, fair value
$ 488,007,000 
$ 484,820,000 
 
$ 8,382,000 
$ 8,319,000 
$ 400,000 
Number of Securities in Loss Position
148 
171 
 
 
 
 
Number of Securities in Loss Position for More than Twelve Months
38 
39 
 
 
 
 
Number of securities resulting impairment
 
 
 
 
 
Trust assets, cost
496,363,000 
482,536,000 
 
8,382,000 
8,319,000 
600,000 
Other than temporary impairments loss
 
 
 
 
200,000 
Net deposits into the trust
5,000,000 
 
 
 
 
 
Purchases of securities available for sale included in trust investments
239,000,000 
 
 
 
 
 
Sales of securities available for sale included in trust investments
$ 239,100,000 
 
 
 
 
 
Cost and Market Value Associated with Assets Held in Merchandise Trusts (Detail) (Variable Interest Entity, Primary Beneficiary, Merchandise Trusts, USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
$ 496,363 
$ 482,536 
Gross Unrealized Gains
7,332 
17,627 
Gross Unrealized Losses
(15,688)
(15,343)
Fair Value
488,007 
484,820 
Short-term investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
31,591 
52,521 
Fair Value
31,591 
52,521 
Fixed maturities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
19,813 
16,827 
Gross Unrealized Gains
82 
23 
Gross Unrealized Losses
(384)
(466)
Fair Value
19,511 
16,384 
Fixed maturities |
U.S. State and local government agency
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
65 
270 
Gross Unrealized Gains
15 
 
Gross Unrealized Losses
 
(1)
Fair Value
80 
269 
Fixed maturities |
Corporate debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
12,566 
9,400 
Gross Unrealized Gains
67 
23 
Gross Unrealized Losses
(376)
(447)
Fair Value
12,257 
8,976 
Fixed maturities |
Other debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
7,182 
7,157 
Gross Unrealized Losses
(8)
(18)
Fair Value
7,174 
7,139 
Mutual funds - debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
246,768 
150,477 
Gross Unrealized Gains
978 
869 
Gross Unrealized Losses
(9,047)
(8,666)
Fair Value
238,699 
142,680 
Mutual funds - equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
129,452 
167,353 
Gross Unrealized Gains
2,772 
12,568 
Gross Unrealized Losses
(1,578)
(463)
Fair Value
130,646 
179,458 
Equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
54,888 
81,639 
Gross Unrealized Gains
3,500 
4,167 
Gross Unrealized Losses
(4,336)
(5,507)
Fair Value
54,052 
80,299 
Other invested assets
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
5,469 
5,400 
Gross Unrealized Losses
(343)
(241)
Fair Value
5,126 
5,159 
Total managed investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
487,981 
474,217 
Gross Unrealized Gains
7,332 
17,627 
Gross Unrealized Losses
(15,688)
(15,343)
Fair Value
479,625 
476,501 
West Virginia Trust Receivable
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
8,382 
8,319 
Fair Value
$ 8,382 
$ 8,319 
Contractual Maturities of Debt Securities Held in Merchandise Trusts (Detail) (Fixed maturities, USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
$ 854 
1 year through 5 years
14,838 
6 years through 10 years
9,018 
More than 10 years
20 
U.S. State and local government agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
28 
Corporate debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
455 
1 year through 5 years
14,723 
6 years through 10 years
9,018 
More than 10 years
20 
Other debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
371 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
891 
1 year through 5 years
13,353 
6 years through 10 years
5,265 
More than 10 years
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts |
U.S. State and local government agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
1 year through 5 years
18 
6 years through 10 years
60 
More than 10 years
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts |
Corporate debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
1 year through 5 years
7,052 
6 years through 10 years
5,205 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts |
Other debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
891 
1 year through 5 years
$ 6,283 
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, 2015
Securities
Dec. 31, 2014
Securities
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
$ 170,881 
$ 89,200 
Less than 12 months Unrealized Losses
6,082 
6,494 
12 Months or more Fair Value
147,848 
110,694 
12 Months or more Unrealized Losses
9,606 
8,849 
Total Fair Value
318,729 
199,894 
Total Unrealized Losses
15,688 
15,343 
Number of Securities in Loss Position
148 
171 
Fixed maturities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
8,454 
8,418 
Less than 12 months Unrealized Losses
216 
351 
12 Months or more Fair Value
7,329 
6,275 
12 Months or more Unrealized Losses
168 
115 
Total Fair Value
15,783 
14,693 
Total Unrealized Losses
384 
466 
Number of Securities in Loss Position
59 
74 
Fixed maturities |
U.S. State and local government agency
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
 
143 
Less than 12 months Unrealized Losses
 
Total Fair Value
 
143 
Total Unrealized Losses
 
Number of Securities in Loss Position
 
Fixed maturities |
Corporate debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
6,070 
5,905 
Less than 12 months Unrealized Losses
214 
342 
12 Months or more Fair Value
2,539 
1,506 
12 Months or more Unrealized Losses
162 
105 
Total Fair Value
8,609 
7,411 
Total Unrealized Losses
376 
447 
Number of Securities in Loss Position
46 
58 
Fixed maturities |
Other debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
2,384 
2,370 
Less than 12 months Unrealized Losses
12 Months or more Fair Value
4,790 
4,769 
12 Months or more Unrealized Losses
10 
Total Fair Value
7,174 
7,139 
Total Unrealized Losses
18 
Number of Securities in Loss Position
13 
13 
Mutual funds - debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
87,042 
32,072 
Less than 12 months Unrealized Losses
617 
1,039 
12 Months or more Fair Value
132,090 
95,629 
12 Months or more Unrealized Losses
8,430 
7,627 
Total Fair Value
219,132 
127,701 
Total Unrealized Losses
9,047 
8,666 
Number of Securities in Loss Position
28 
34 
Mutual funds - equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
49,100 
4,147 
Less than 12 months Unrealized Losses
1,578 
463 
Total Fair Value
49,100 
4,147 
Total Unrealized Losses
1,578 
463 
Number of Securities in Loss Position
Equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
26,285 
44,563 
Less than 12 months Unrealized Losses
3,671 
4,641 
12 Months or more Fair Value
3,511 
3,909 
12 Months or more Unrealized Losses
665 
866 
Total Fair Value
29,796 
48,472 
Total Unrealized Losses
4,336 
5,507 
Number of Securities in Loss Position
56 
60 
Other invested assets
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
12 Months or more Fair Value
4,918 
4,881 
12 Months or more Unrealized Losses
343 
241 
Total Fair Value
4,918 
4,881 
Total Unrealized Losses
$ 343 
$ 241 
Number of Securities in Loss Position
Reconciliation of Merchandise Trust Activities (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Mar. 31, 2015
Variable Interest Entity, Primary Beneficiary
Merchandise Trusts
Schedule of Available-for-sale Securities [Line Items]
 
 
 
Fair Value
$ 488,007 
$ 484,820 
$ 484,820 
Contributions
 
 
16,540 
Distributions
 
 
(11,537)
Interest/ Dividends
 
 
3,874 
Capital Gain Distributions
 
 
Realized Gain/ Loss
 
 
5,702 1
Taxes
 
 
(15)
Fees
 
 
(737)
Unrealized Change in Fair Value
 
 
(10,640)
Fair Value
$ 488,007 
$ 484,820 
$ 488,007 
Reconciliation of Merchandise Trust Activities (Parenthetical) (Detail) (Variable Interest Entity, Primary Beneficiary, Merchandise Trusts, USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts
 
Schedule of Available-for-sale Securities [Line Items]
 
Net effect of other-than-temporary impairment charges
$ 3.9 
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, 2015
Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
$ 336,911 
$ 314,546 
Gross Unrealized Gains
13,906 
38,207 
Gross Unrealized Losses
(5,634)
(7,648)
Fair Value
345,183 
345,105 
Short-term investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
30,012 
26,644 
Fair Value
30,012 
26,644 
Fixed maturities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
25,272 
24,824 
Gross Unrealized Gains
240 
121 
Gross Unrealized Losses
(782)
(913)
Fair Value
24,730 
24,032 
Fixed maturities |
U.S. Government and federal agency
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
100 
100 
Gross Unrealized Gains
15 
16 
Fair Value
115 
116 
Fixed maturities |
U.S. State and local government agency
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
27 
78 
Gross Unrealized Gains
Fair Value
28 
79 
Fixed maturities |
Corporate debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
24,774 
24,275 
Gross Unrealized Gains
224 
104 
Gross Unrealized Losses
(782)
(913)
Fair Value
24,216 
23,466 
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
202,419 
128,735 
Gross Unrealized Gains
414 
379 
Gross Unrealized Losses
(4,777)
(5,220)
Fair Value
198,056 
123,894 
Mutual funds - equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
77,034 
103,701 
Gross Unrealized Gains
12,763 
23,003 
Gross Unrealized Losses
(40)
(1,268)
Fair Value
89,757 
125,436 
Equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
2,167 
30,617 
Gross Unrealized Gains
489 
14,704 
Gross Unrealized Losses
(35)
(247)
Fair Value
2,621 
45,074 
Other invested assets
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
25 
Fair Value
$ 7 
$ 25 
Contractual Maturities of Debt Securities Held in Perpetual Care Trusts (Detail) (Fixed maturities, USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
$ 854 
1 year through 5 years
14,838 
6 years through 10 years
9,018 
More than 10 years
20 
U.S. Government and federal agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
1 year through 5 years
115 
U.S. State and local government agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
28 
Corporate debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
455 
1 year through 5 years
14,723 
6 years through 10 years
9,018 
More than 10 years
20 
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, 2015
Securities
Dec. 31, 2014
Securities
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
$ 32,703 
$ 61,680 
Less than 12 months Unrealized Losses
1,117 
3,079 
12 Months or more Fair Value
123,657 
89,953 
12 Months or more Unrealized Losses
4,517 
4,569 
Total Fair Value
156,360 
151,633 
Total Unrealized Losses
5,634 
7,648 
Number of Securities in Loss Position
112 
148 
Fixed maturities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
10,571 
14,434 
Less than 12 months Unrealized Losses
516 
798 
12 Months or more Fair Value
3,861 
2,519 
12 Months or more Unrealized Losses
266 
115 
Total Fair Value
14,432 
16,953 
Total Unrealized Losses
782 
913 
Number of Securities in Loss Position
55 
83 
Fixed maturities |
Corporate debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
10,571 
14,434 
Less than 12 months Unrealized Losses
516 
798 
12 Months or more Fair Value
3,861 
2,519 
12 Months or more Unrealized Losses
266 
115 
Total Fair Value
14,432 
16,953 
Total Unrealized Losses
782 
913 
Number of Securities in Loss Position
55 
83 
Mutual funds - debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
18,437 
30,345 
Less than 12 months Unrealized Losses
529 
768 
12 Months or more Fair Value
119,177 
86,814 
12 Months or more Unrealized Losses
4,248 
4,452 
Total Fair Value
137,614 
117,159 
Total Unrealized Losses
4,777 
5,220 
Number of Securities in Loss Position
30 
31 
Mutual funds - equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
3,458 
13,035 
Less than 12 months Unrealized Losses
40 
1,268 
Total Fair Value
3,458 
13,035 
Total Unrealized Losses
40 
1,268 
Number of Securities in Loss Position
Equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
237 
3,866 
Less than 12 months Unrealized Losses
32 
245 
12 Months or more Fair Value
619 
620 
12 Months or more Unrealized Losses
Total Fair Value
856 
4,486 
Total Unrealized Losses
$ 35 
$ 247 
Number of Securities in Loss Position
25 
29 
Perpetual Care Trusts - Additional Information (Detail) (Variable Interest Entity, Primary Beneficiary, Perpetual care trusts, USD $)
3 Months Ended
Mar. 31, 2015
Securities
Mar. 31, 2014
Dec. 31, 2014
Securities
Variable Interest Entity, Primary Beneficiary |
Perpetual care trusts
 
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
 
Number of Securities in Loss Position
112 
 
148 
Number of Securities in Loss Position for More than Twelve Months
22 
 
20 
Other than temporary impairments loss
$ 0 
$ 0 
 
Net contribution made into the trust
3,700,000 
 
 
Purchases of securities available for sale included in trust investments
233,900,000 
 
 
Sales of securities available for sale included in trust investments
$ 230,700,000 
 
 
Reconciliation of Perpetual Care Trust Activities (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Mar. 31, 2015
Variable Interest Entity, Primary Beneficiary
Perpetual care trusts
Schedule of Available-for-sale Securities [Line Items]
 
 
 
Fair Value
$ 345,183 
$ 345,105 
$ 345,105 
Contributions
 
 
6,478 
Distributions
 
 
(2,793)
Interest/ Dividends
 
 
3,649 
Capital Gain Distributions
 
 
Realized Gain/ Loss
 
 
15,699 1
Taxes
 
 
(134)
Fees
 
 
(534)
Unrealized Change in Fair Value
 
 
(22,287)
Fair Value
$ 345,183 
$ 345,105 
$ 345,183 
Reconciliation of Perpetual Care Trust Activities (Parenthetical) (Detail) (Variable Interest Entity, Primary Beneficiary, Perpetual care trusts, USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Variable Interest Entity, Primary Beneficiary |
Perpetual care trusts
 
Schedule of Available-for-sale Securities [Line Items]
 
Net effect of other-than-temporary impairment charges
$ 12.0 
Goodwill Balance During Period and Summary by Reportable Segment (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Mar. 31, 2014
Goodwill [Line Items]
 
 
 
Goodwill
$ 58,836 
$ 58,836 
$ 48,737 
Cemetery Operations South East
 
 
 
Goodwill [Line Items]
 
 
 
Goodwill
8,950 
 
 
Cemetery Operations North East
 
 
 
Goodwill [Line Items]
 
 
 
Goodwill
3,288 
 
 
Cemetery Operations West
 
 
 
Goodwill [Line Items]
 
 
 
Goodwill
11,948 
 
 
Funeral Home
 
 
 
Goodwill [Line Items]
 
 
 
Goodwill
$ 34,650 
 
 
Major Classes of Intangible Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
$ 72,686 
$ 72,686 
Accumulated Amortization
(4,245)
(3,696)
Net Intangible Asset
68,441 
68,990 
Lease and management agreements
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
59,758 
59,758 
Accumulated Amortization
(830)
(581)
Net Intangible Asset
58,928 
59,177 
Underlying contract value
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
6,239 
6,239 
Accumulated Amortization
(897)
(858)
Net Intangible Asset
5,342 
5,381 
Noncompete Agreements
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
5,250 
5,250 
Accumulated Amortization
(2,375)
(2,126)
Net Intangible Asset
2,875 
3,124 
Other intangible assets
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
1,439 
1,439 
Accumulated Amortization
(143)
(131)
Net Intangible Asset
$ 1,296 
$ 1,308 
Outstanding Debt (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
May 28, 2013
Debt Instrument [Line Items]
 
 
 
Long-Term Debt
$ 302,238 
$ 291,160 
 
Less current portion
1,664 
2,251 
 
Less unamortized bond and note payable discounts
3,390 
3,531 
 
Long-term portion
297,184 
285,378 
 
Working Capital Credit Facility, due December 2019
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-Term Debt
97,902 
85,902 
 
Acquisition Credit Facility, due December 2019
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-Term Debt
25,000 
25,000 
 
7.875% senior notes, due 2021
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-Term Debt
175,000 
175,000 
 
Less unamortized bond and note payable discounts
 
 
3,800 
Notes Payable, other Payables |
Acquisitions Debt
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-Term Debt
819 
861 
 
Notes Payable, other Payables |
Acquisition non-competes
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-Term Debt
2,396 
2,765 
 
Insurance and vehicle financing
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-Term Debt
$ 1,121 
$ 1,632 
 
Outstanding Debt (Parenthetical) (Detail)
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
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
2021-06 
2021-06 
 
Working Capital Credit Facility, due December 2019
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-Term Debt, maturity date
2019-12 
2019-12 
 
Acquisition Credit Facility, due December 2019
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-Term Debt, maturity date
2019-12 
2019-12 
 
Long Term Debt - Additional Information (Detail) (USD $)
3 Months Ended 3 Months Ended 0 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Mar. 31, 2015
Revolving Credit Facility, due January 2017
Mar. 31, 2015
Fourth Amended and restated credit facility
Mar. 31, 2015
Fourth Amended and restated credit facility
Minimum
Mar. 31, 2015
Fourth Amended and restated credit facility
Working Capital Advances
Mar. 31, 2015
Line of Credit
Mar. 31, 2015
Line of Credit
Base Rate
Mar. 31, 2015
Line of Credit
Minimum
Mar. 31, 2015
Line of Credit
Maximum
May 28, 2013
7.875% senior notes, due 2021
Mar. 31, 2015
7.875% senior notes, due 2021
Dec. 31, 2014
7.875% senior notes, due 2021
May 28, 2013
7.875% senior notes, due 2021
Mar. 31, 2015
10.25% Senior Notes, due 2017
May 28, 2013
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
3,390,000 
3,531,000 
 
 
 
 
 
 
 
 
 
 
 
3,800,000 
 
 
Long-Term Debt, debt issuance costs
 
 
 
 
 
 
 
 
 
 
4,600,000 
 
 
 
 
 
Debt premium percentage
 
 
 
 
 
 
 
 
 
 
 
4.94% 
 
 
 
 
Long-Term Debt, fair value
 
 
 
 
 
 
 
 
 
 
 
183,600,000 
 
 
 
 
Credit facility , maximum borrowing
 
 
 
180,000,000 
 
133,000,000 
 
 
 
 
 
 
 
 
 
 
Credit facility, additional borrowing capacity
 
 
 
70,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Long term debt, maturity date
 
 
 
Dec. 19, 2019 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility, interest rate
 
 
 
 
 
 
3.50% 
 
 
 
 
 
 
 
 
 
Credit facility, interest rate margin on base rate
 
 
 
 
 
 
 
 
1.25% 
3.00% 
 
 
 
 
 
 
Credit facility, interest rate margin on Eurodollar rate
 
 
 
 
 
 
 
 
2.25% 
4.00% 
 
 
 
 
 
 
Credit facility, margin on Federal Funds Rate to calculate interest rate reference rate
 
 
 
 
 
 
 
2.75% 
 
 
 
 
 
 
 
 
Credit facility, margin on Eurodollar Rate to calculate interest rate reference rate
 
 
 
 
 
 
 
3.75% 
 
 
 
 
 
 
 
 
Debt covenant, Consolidated EBITDA requirement for recently completed four fiscal quarters
 
 
 
80,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Debt covenant, Percentage of consolidated EBITDA
 
 
 
80.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum consolidated leverage ratio
 
 
 
400.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated coverage ratio
 
 
 
 
250.00% 
 
 
 
 
 
 
 
 
 
 
 
Minimum percentage of eligible receivables to borrow working capital advance
 
 
 
 
 
85.00% 
 
 
 
 
 
 
 
 
 
 
Credit facility, outstanding borrowing amount
 
 
$ 122,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Taxes - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
State and Local Jurisdiction
 
Income Taxes [Line Items]
 
Net operating loss carryforwards
$ 272.0 
Internal Revenue Service (IRS)
 
Income Taxes [Line Items]
 
Net operating loss carryforwards
$ 223.1 
Net operating loss carryforwards, expiration date
2017 
Deferred Cemetery Revenues Net (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Deferred Revenue Arrangement [Line Items]
 
 
Deferred merchandise trust unrealized gains (losses)
$ (8,356)
$ 2,284 
Deferred cost of goods sold
(63,209)
(60,603)
Deferred cemetery revenues, net
661,877 
643,408 
Deferred selling and obtaining costs
102,904 
97,795 
Pre Acquisition Margin
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred cemetery revenues, net
139,344 
140,378 
Cemetery
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred cemetery revenues, net
477,420 
456,632 
Merchandise Trusts
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred cemetery revenues, net
$ 116,678 
$ 104,717 
Commitments and Contingencies - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Leases And Employment Agreements Disclosure [Line Items]
 
 
Operating lease expense
$ 0.7 
$ 0.6 
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, 2015
Operating Leases Future Minimum Payments Due [Line Items]
 
2015
$ 2,000 
2016
2,444 
2017
2,305 
2018
1,912 
2019
1,726 
2020
613 
Thereafter
1,744 
Total
$ 12,744 
Activity Relating to Number of Common Units Outstanding (Detail)
0 Months Ended 3 Months Ended
Feb. 16, 2015
Mar. 31, 2015
Limited Partners' Capital Account [Line Items]
 
 
Outstanding, beginning of period
 
29,203,595 
Unit distributions
54,622 
54,622 
Unit-based compensation
 
1,148 
Outstanding, end of period
 
29,259,365 
Partners' Capital - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
0 Months Ended 3 Months Ended
Feb. 16, 2015
Mar. 31, 2015
Limited Partners' Capital Account [Line Items]
 
 
Units excluded from the calculation of diluted weighted average number of limited partners' units, because of their anti-dilutive effect
 
185,194 
Common units issued
 
1,148 
Distribution units issued
54,622 
54,622 
Cash Distribution paid
$ 1.4 
 
Unit appreciation rights
 
 
Limited Partners' Capital Account [Line Items]
 
 
Non-vested unit appreciation rights expense outstanding
 
$ 0.1 
Acquisitions - Additional Information (Detail) (USD $)
0 Months Ended 3 Months Ended
Jan. 16, 2014
First Quarter 2014 Acquisition
Jan. 16, 2014
First Quarter 2014 Acquisition
Cemetery property
Property
Mar. 31, 2015
Two Thousand Fourteen Acquisitions
Maximum
Mar. 31, 2014
Two Thousand Fourteen Acquisitions
Maximum
Business Acquisition [Line Items]
 
 
 
 
Number of properties acquired
 
 
 
Consideration paid
$ 200,000 
 
 
 
Property Acquired, revenue contributed
 
 
100,000 
100,000 
Property Acquired, operating profit (loss) contributed
 
 
$ 100,000 
$ 100,000 
Final 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 0 Months Ended 3 Months Ended
Mar. 31, 2014
Jan. 16, 2014
First Quarter 2014 Acquisition
Mar. 31, 2014
First Quarter 2014 Acquisition
Final Allocation
Mar. 31, 2014
First Quarter 2014 Acquisition
Final Allocation
Other liabilities
Mar. 31, 2014
First Quarter 2014 Acquisition
Final Allocation
Accounts receivable
Mar. 31, 2014
First Quarter 2014 Acquisition
Final Allocation
Perpetual care trusts, restricted, at fair value
Merchandise Trusts
Mar. 31, 2014
First Quarter 2014 Acquisition
Final Allocation
Perpetual care trusts, restricted, at fair value
Perpetual care trusts
Mar. 31, 2014
First Quarter 2014 Acquisition
Final Allocation
Deferred margin
Mar. 31, 2014
First Quarter 2014 Acquisition
Final Allocation
Merchandise Liabilities Noncurrent
Mar. 31, 2014
First Quarter 2014 Acquisition
Final Allocation
Deferred tax liability
Mar. 31, 2014
First Quarter 2014 Acquisition
Final Allocation
Perpetual care trust corpus
Perpetual care trusts
Mar. 31, 2014
First Quarter 2014 Acquisition
Final Allocation
Cemetery property
Mar. 31, 2014
First Quarter 2014 Acquisition
Final 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
 
 
 
20 
 
 
 
1,035 
956 
641 
691 
 
 
Total liabilities
 
 
3,343 
 
 
 
 
 
 
 
 
 
 
Fair value of net assets acquired
 
 
612 
 
 
 
 
 
 
 
 
 
 
Consideration paid
 
200 
200 
 
 
 
 
 
 
 
 
 
 
Gain on bargain purchase
$ 412 
 
$ 412 
 
 
 
 
 
 
 
 
 
 
Consolidated Pro Forma Information (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
 
 
Revenue
$ 67,417 
$ 64,398 
Net income (loss)
$ (8,883)
$ (2)
Net income (loss) per limited partner unit (basic and diluted)
$ (0.30)
 
Segment Information - Additional Information (Detail)
3 Months Ended
Mar. 31, 2015
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, 2015
Mar. 31, 2014
Dec. 31, 2014
Revenues
 
 
 
Revenues
$ 67,417 
$ 64,387 
 
Costs and expenses
 
 
 
Selling
13,910 
11,189 
 
General and administrative
9,329 
7,645 
 
Corporate overhead
8,734 
7,456 
 
Depreciation and amortization
2,952 
2,368 
 
Funeral home
12,150 
9,286 
 
Acquisition related costs, net of recoveries
349 
349 
 
Total cost and expenses
70,772 
59,126 
 
Operating profit (loss)
(3,355)
5,261 
 
Total assets
1,705,353 
1,492,967 
1,699,464 
Long lived asset additions
3,050 
3,156 
 
Goodwill
58,836 
48,737 
58,836 
Cemetery
 
 
 
Costs and expenses
 
 
 
Cost of sales
7,083 
7,504 
 
Cemetery
16,265 
13,329 
 
Cemetery |
Sales
 
 
 
Revenues
 
 
 
Revenues
29,944 
28,874 
 
Cemetery |
Service and other
 
 
 
Revenues
 
 
 
Revenues
22,213 
23,766 
 
Funeral Homes Property
 
 
 
Revenues
 
 
 
Revenues
15,260 
11,747 
 
Cemetery property
 
 
 
Costs and expenses
 
 
 
Amortization of cemetery property
1,588 
2,723 
 
Cemetery Operations South East
 
 
 
Costs and expenses
 
 
 
Goodwill
8,950 
 
 
Cemetery Operations North East
 
 
 
Costs and expenses
 
 
 
Goodwill
3,288 
 
 
Cemetery Operations West
 
 
 
Costs and expenses
 
 
 
Goodwill
11,948 
 
 
Funeral Home
 
 
 
Costs and expenses
 
 
 
Goodwill
34,650 
 
 
Operating Segments |
Cemetery Operations South East
 
 
 
Revenues
 
 
 
Revenues
36,176 
33,727 
 
Costs and expenses
 
 
 
Selling
9,147 
7,248 
 
General and administrative
4,670 
4,096 
 
Depreciation and amortization
800 
633 
 
Total cost and expenses
26,719 
23,164 
 
Operating profit (loss)
9,457 
10,563 
 
Total assets
645,407 
580,359 
 
Long lived asset additions
1,505 
1,564 
 
Goodwill
8,950 
6,174 
 
Operating Segments |
Cemetery Operations South East |
Cemetery
 
 
 
Costs and expenses
 
 
 
Cost of sales
5,268 
4,792 
 
Cemetery
6,834 
6,395 
 
Operating Segments |
Cemetery Operations South East |
Cemetery |
Sales
 
 
 
Revenues
 
 
 
Revenues
24,290 
22,101 
 
Operating Segments |
Cemetery Operations South East |
Cemetery |
Service and other
 
 
 
Revenues
 
 
 
Revenues
11,886 
11,626 
 
Operating Segments |
Cemetery Operations South East |
Cemetery property
 
 
 
Costs and expenses
 
 
 
Amortization of cemetery property
1,130 
1,251 
 
Operating Segments |
Cemetery Operations North East
 
 
 
Revenues
 
 
 
Revenues
21,244 
18,014 
 
Costs and expenses
 
 
 
Selling
5,005 
2,802 
 
General and administrative
2,540 
1,492 
 
Depreciation and amortization
607 
236 
 
Total cost and expenses
16,334 
9,443 
 
Operating profit (loss)
4,910 
8,571 
 
Total assets
428,673 
318,937 
 
Long lived asset additions
746 
442 
 
Goodwill
3,288 
 
 
Operating Segments |
Cemetery Operations North East |
Cemetery
 
 
 
Costs and expenses
 
 
 
Cost of sales
2,329 
1,678 
 
Cemetery
5,853 
3,235 
 
Operating Segments |
Cemetery Operations North East |
Cemetery |
Sales
 
 
 
Revenues
 
 
 
Revenues
12,485 
7,410 
 
Operating Segments |
Cemetery Operations North East |
Cemetery |
Service and other
 
 
 
Revenues
 
 
 
Revenues
8,759 
10,604 
 
Operating Segments |
Cemetery Operations North East |
Cemetery property
 
 
 
Costs and expenses
 
 
 
Amortization of cemetery property
485 
583 
 
Operating Segments |
Cemetery Operations West
 
 
 
Revenues
 
 
 
Revenues
19,695 
20,744 
 
Costs and expenses
 
 
 
Selling
4,152 
3,234 
 
General and administrative
2,119 
2,057 
 
Depreciation and amortization
499 
521 
 
Total cost and expenses
12,488 
12,288 
 
Operating profit (loss)
7,207 
8,456 
 
Total assets
444,411 
434,562 
 
Long lived asset additions
497 
1,041 
 
Goodwill
11,948 
11,948 
 
Operating Segments |
Cemetery Operations West |
Cemetery
 
 
 
Costs and expenses
 
 
 
Cost of sales
2,140 
2,777 
 
Cemetery
3,578 
3,699 
 
Operating Segments |
Cemetery Operations West |
Cemetery |
Sales
 
 
 
Revenues
 
 
 
Revenues
10,695 
9,821 
 
Operating Segments |
Cemetery Operations West |
Cemetery |
Service and other
 
 
 
Revenues
 
 
 
Revenues
9,000 
10,923 
 
Operating Segments |
Cemetery Operations West |
Cemetery property
 
 
 
Costs and expenses
 
 
 
Amortization of cemetery property
390 
1,223 
 
Operating Segments |
Funeral Home
 
 
 
Revenues
 
 
 
Revenues
17,415 
13,254 
 
Costs and expenses
 
 
 
Depreciation and amortization
799 
736 
 
Funeral home
12,611 
9,504 
 
Total cost and expenses
13,410 
10,240 
 
Operating profit (loss)
4,005 
3,014 
 
Total assets
165,828 
135,819 
 
Long lived asset additions
218 
57 
 
Goodwill
34,650 
30,615 
 
Operating Segments |
Funeral Home |
Funeral Homes Property
 
 
 
Revenues
 
 
 
Revenues
17,415 
13,254 
 
Corporate
 
 
 
Costs and expenses
 
 
 
Selling
200 
545 
 
Corporate overhead
8,734 
7,456 
 
Depreciation and amortization
247 
242 
 
Acquisition related costs, net of recoveries
349 
349 
 
Total cost and expenses
9,530 
8,592 
 
Operating profit (loss)
(9,530)
(8,592)
 
Total assets
21,034 
23,290 
 
Long lived asset additions
84 
52 
 
Adjustment
 
 
 
Revenues
 
 
 
Revenues
(27,113)
(21,352)
 
Costs and expenses
 
 
 
Selling
(4,594)
(2,640)
 
Funeral home
(461)
(218)
 
Total cost and expenses
(7,709)
(4,601)
 
Operating profit (loss)
(19,404)
(16,751)
 
Adjustment |
Cemetery
 
 
 
Costs and expenses
 
 
 
Cost of sales
(2,654)
(1,743)
 
Adjustment |
Cemetery |
Sales
 
 
 
Revenues
 
 
 
Revenues
(17,526)
(10,458)
 
Adjustment |
Cemetery |
Service and other
 
 
 
Revenues
 
 
 
Revenues
(7,432)
(9,387)
 
Adjustment |
Funeral Homes Property
 
 
 
Revenues
 
 
 
Revenues
(2,155)
(1,507)
 
Adjustment |
Cemetery property
 
 
 
Costs and expenses
 
 
 
Amortization of cemetery property
$ (417)
$ (334)
 
Assets and Liabilities Measured at Fair Value (Detail) (Variable Interest Entity, Primary Beneficiary, USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Merchandise Trusts
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
$ 488,007 
$ 484,820 
Merchandise Trusts |
Short-term investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
31,591 
52,521 
Merchandise Trusts |
Short-term investments |
Level 1
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
31,591 
52,521 
Merchandise Trusts |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
19,511 
16,384 
Merchandise Trusts |
Fixed maturities |
U.S. State and local government agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
80 
269 
Merchandise Trusts |
Fixed maturities |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
12,257 
8,976 
Merchandise Trusts |
Fixed maturities |
Other debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
7,174 
7,139 
Merchandise Trusts |
Fixed maturities |
Level 2
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
19,511 
16,384 
Merchandise Trusts |
Fixed maturities |
Level 2 |
U.S. State and local government agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
80 
269 
Merchandise Trusts |
Fixed maturities |
Level 2 |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
12,257 
8,976 
Merchandise Trusts |
Fixed maturities |
Level 2 |
Other debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
7,174 
7,139 
Merchandise Trusts |
Mutual funds - debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
238,699 
142,680 
Merchandise Trusts |
Mutual funds - debt securities |
Level 1
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
238,699 
142,680 
Merchandise Trusts |
Mutual funds - equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
130,646 
179,458 
Merchandise Trusts |
Mutual funds - equity securities |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
19,133 
58,672 
Merchandise Trusts |
Mutual funds - equity securities |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
12,815 
7,733 
Merchandise Trusts |
Mutual funds - equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
21,308 
22,927 
Merchandise Trusts |
Mutual funds - equity securities |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
77,390 
90,126 
Merchandise Trusts |
Mutual funds - equity securities |
Level 1 |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
19,133 
58,672 
Merchandise Trusts |
Mutual funds - equity securities |
Level 1 |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
12,815 
7,733 
Merchandise Trusts |
Mutual funds - equity securities |
Level 1 |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
21,308 
22,927 
Merchandise Trusts |
Mutual funds - equity securities |
Level 1 |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
77,390 
90,126 
Merchandise Trusts |
Equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
54,052 
80,299 
Merchandise Trusts |
Equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
25,224 
50,091 
Merchandise Trusts |
Equity securities |
Global Equity Securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
28,828 
30,208 
Merchandise Trusts |
Equity securities |
Level 1 |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
25,224 
50,091 
Merchandise Trusts |
Equity securities |
Level 1 |
Global Equity Securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
28,828 
30,208 
Merchandise Trusts |
Other invested assets
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
5,126 
5,159 
Merchandise Trusts |
Other invested assets |
Level 2
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
5,126 
5,159 
Merchandise Trusts |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
479,625 
476,501 
Merchandise Trusts |
Total managed investments |
Level 1
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
454,988 
454,958 
Merchandise Trusts |
Total managed investments |
Level 2
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
24,637 
21,543 
Perpetual care trusts
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
345,183 
345,105 
Perpetual care trusts |
Short-term investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
30,012 
26,644 
Perpetual care trusts |
Short-term investments |
Level 1
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
30,012 
26,644 
Perpetual care trusts |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
24,730 
24,032 
Perpetual care trusts |
Fixed maturities |
U.S. State and local government agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
28 
79 
Perpetual care trusts |
Fixed maturities |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
24,216 
23,466 
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 |
Fixed maturities |
U.S. Government and federal agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
115 
116 
Perpetual care trusts |
Fixed maturities |
Level 1
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
115 
116 
Perpetual care trusts |
Fixed maturities |
Level 1 |
U.S. Government and federal agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
115 
116 
Perpetual care trusts |
Fixed maturities |
Level 2
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
24,615 
23,916 
Perpetual care trusts |
Fixed maturities |
Level 2 |
U.S. State and local government agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
28 
79 
Perpetual care trusts |
Fixed maturities |
Level 2 |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
24,216 
23,466 
Perpetual care trusts |
Fixed maturities |
Level 2 |
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
198,056 
123,894 
Perpetual care trusts |
Mutual funds - debt securities |
Level 1
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
198,056 
123,894 
Perpetual care trusts |
Mutual funds - equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
89,757 
125,436 
Perpetual care trusts |
Mutual funds - equity securities |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
17,052 
41,753 
Perpetual care trusts |
Mutual funds - equity securities |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
20,424 
14,829 
Perpetual care trusts |
Mutual funds - equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
40,474 
43,596 
Perpetual care trusts |
Mutual funds - equity securities |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
11,807 
25,258 
Perpetual care trusts |
Mutual funds - equity securities |
Level 1 |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
17,052 
41,753 
Perpetual care trusts |
Mutual funds - equity securities |
Level 1 |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
20,424 
14,829 
Perpetual care trusts |
Mutual funds - equity securities |
Level 1 |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
40,474 
43,596 
Perpetual care trusts |
Mutual funds - equity securities |
Level 1 |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
11,807 
25,258 
Perpetual care trusts |
Equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
2,621 
45,074 
Perpetual care trusts |
Equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
988 
43,207 
Perpetual care trusts |
Equity securities |
Global Equity Securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
1,633 
1,867 
Perpetual care trusts |
Equity securities |
Level 1 |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
988 
43,207 
Perpetual care trusts |
Equity securities |
Level 1 |
Global Equity Securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
1,633 
1,867 
Perpetual care trusts |
Other invested assets
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
25 
Perpetual care trusts |
Other invested assets |
Level 2
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
25 
Perpetual care trusts |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
345,183 
345,105 
Perpetual care trusts |
Total managed investments |
Level 1
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
320,561 
321,164 
Perpetual care trusts |
Total managed investments |
Level 2
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
$ 24,622 
$ 23,941