STONEMOR PARTNERS LP, 10-Q filed on 11/6/2012
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2012
Nov. 1, 2012
Document Information [Line Items]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Sep. 30, 2012 
 
Document Fiscal Year Focus
2012 
 
Document Fiscal Period Focus
Q3 
 
Trading Symbol
STON 
 
Entity Registrant Name
STONEMOR PARTNERS LP 
 
Entity Central Index Key
0001286131 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
19,538,051 
Condensed Consolidated Balance Sheet (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Current assets:
 
 
Cash and cash equivalents
$ 8,128 
$ 12,058 
Accounts receivable, net of allowance
48,109 
48,837 
Prepaid expenses
4,727 
4,266 
Other current assets
15,548 
16,670 
Total current assets
76,512 
81,831 
Long-term accounts receivable, net of allowance
69,631 
68,419 
Cemetery property
309,340 
298,938 
Property and equipment, net of accumulated depreciation
79,567 
73,777 
Merchandise trusts, restricted, at fair value
372,775 
344,515 
Perpetual care trusts, restricted, at fair value
282,651 
254,679 
Deferred financing costs, net of accumulated amortization
9,681 
8,817 
Deferred selling and obtaining costs
73,904 
68,542 
Deferred tax assets
605 
415 
Goodwill
40,393 
31,907 
Other assets
14,878 
16,918 
Total assets
1,329,937 
1,248,758 
Current liabilities:
 
 
Accounts payable and accrued liabilities
22,914 
26,428 
Accrued interest
5,688 
1,632 
Current portion, long-term debt
1,770 
1,487 
Total current liabilities
30,372 
29,547 
Other long-term liabilities
1,884 
2,830 
Long-term debt
236,118 
193,835 
Deferred cemetery revenues, net
484,941 
441,678 
Deferred tax liabilities
15,191 
16,968 
Merchandise liability
128,452 
128,942 
Perpetual care trust corpus
282,651 
254,679 
Total liabilities
1,179,609 
1,068,479 
Commitments and contingencies
   
   
Partners' capital
 
 
General partner
944 
2,192 
Common partners
149,384 
178,087 
Total partners' capital
150,328 
180,279 
Total liabilities and partners' capital
$ 1,329,937 
$ 1,248,758 
Condensed Consolidated Statement of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Revenues:
 
 
 
 
Total revenues
$ 62,197 
$ 60,325 
$ 183,292 
$ 169,663 
Costs and Expenses:
 
 
 
 
Selling expense
11,290 
12,192 
36,200 
33,923 
General and administrative expense
7,015 
7,111 
21,403 
20,569 
Corporate overhead (including $216 and $195 in unit-based compensation for the three months ended September 30, 2012 and 2011, and $625 and $576 for the nine months ended September 30, 2012 and 2011, respectively)
6,546 
5,628 
20,905 
17,572 
Depreciation and amortization
2,199 
1,886 
6,759 
6,374 
Acquisition related costs
1,085 
1,189 
2,198 
3,147 
Total cost and expenses
57,129 
56,346 
171,053 
160,689 
Operating profit
5,068 
3,979 
12,239 
8,974 
Expenses related to refinancing
 
 
 
453 
Gain on termination of operating agreement
 
 
1,737 
 
Gain on acquisition
 
 
122 
 
Early extinguishment of debt
 
 
 
4,010 
Interest expense
5,273 
4,824 
15,109 
14,266 
Net loss before income taxes
(205)
(845)
(1,011)
(9,755)
Income tax expense (benefit)
 
 
 
 
State
(18)
69 
224 
(829)
Federal
(1,248)
(691)
(2,157)
(2,304)
Total income tax expense (benefit)
(1,266)
(622)
(1,933)
(3,133)
Net income (loss)
1,061 
(223)
922 
(6,622)
General partner's interest in net income (loss) for the period
21 
(4)
18 
(132)
Limited partners' interest in net income (loss) for the period
1,040 
(219)
904 
(6,490)
Net income (loss) per limited partner unit (basic and diluted)
0.05 
(0.01)
0.05 
(0.35)
Weighted average number of limited partners' units outstanding - basic
19,491 
19,353 
19,412 
18,807 
Weighted average number of limited partners' units outstanding - diluted
19,743 
19,353 
19,672 
18,807 
Distributions declared per unit
$ 0.590 
$ 0.585 
$ 1.760 
$ 1.755 
Cemetery
 
 
 
 
Revenues:
 
 
 
 
Merchandise
29,943 
28,738 
87,424 
81,277 
Services
11,134 
13,295 
34,481 
35,697 
Investment and other
12,294 
10,793 
35,769 
30,495 
Costs and Expenses:
 
 
 
 
Services
1,616 
1,373 
4,398 
4,097 
Merchandise
6,030 
5,787 
16,904 
15,272 
Cemetery expense
14,252 
15,312 
41,819 
42,860 
Funeral Home
 
 
 
 
Revenues:
 
 
 
 
Merchandise
3,548 
3,041 
11,135 
9,137 
Services
5,278 
4,458 
14,483 
13,057 
Total revenues
9,603 
7,705 
27,065 
22,749 
Costs and Expenses:
 
 
 
 
Services
3,739 
3,107 
10,446 
8,456 
Merchandise
1,196 
982 
3,726 
3,197 
Other
2,161 
1,779 
6,295 
5,222 
Depreciation and amortization
529 
391 
1,667 
1,118 
Total cost and expenses
7,690 
6,259 
22,315 
17,993 
Operating profit
$ 1,913 
$ 1,446 
$ 4,750 
$ 4,756 
Condensed Consolidated Statement of Operations (Parenthetical) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Corporate overhead, unit-based compensation
$ 216 
$ 195 
$ 625 
$ 576 
Condensed Consolidated Statement of Partners' Capital (USD $)
In Thousands
Total
Common Unit Holders
General Partner
Beginning Balance at Dec. 31, 2011
$ 180,279 
$ 178,087 
$ 2,192 
Issuance of common units
4,104 
4,104 
 
Compensation related to UARs
381 
381 
 
General partner contribution
89 
 
89 
Net income
922 
904 
18 
Cash distribution
(35,447)
(34,092)
(1,355)
Ending Balance at Sep. 30, 2012
$ 150,328 
$ 149,384 
$ 944 
Condensed Consolidated Statement of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Operating activities:
 
 
Net income (loss)
$ 922 
$ (6,622)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
Cost of lots sold
6,180 
5,004 
Depreciation and amortization
6,759 
6,374 
Unit-based compensation
625 
576 
Accretion of debt discounts
1,230 
950 
Gain on acquisition
(122)
 
Gain on termination of operating agreement
(1,737)
 
Write-off of deferred financing fees
 
453 
Fees paid related to early extinguishment of debt
 
4,010 
Changes in assets and liabilities that provided (used) cash:
 
 
Accounts receivable
(2,333)
(5,509)
Allowance for doubtful accounts
3,743 
3,597 
Merchandise trust fund
(8,177)
(11,681)
Prepaid expenses
(368)
586 
Other current assets
(344)
(6,024)
Other assets
125 
244 
Accounts payable and accrued and other liabilities
2,207 
(1,290)
Deferred selling and obtaining costs
(5,363)
(6,398)
Deferred cemetery revenue
35,440 
31,560 
Deferred taxes (net)
(2,341)
(2,476)
Merchandise liability
(5,649)
(2,285)
Net cash provided by operating activities
30,797 
11,069 
Investing activities:
 
 
Cash paid for cemetery property
(5,417)
(4,258)
Purchase of subsidiaries
(25,676)
(10,300)
Cash paid for property and equipment
(3,321)
(4,601)
Net cash used in investing activities
(34,414)
(19,159)
Financing activities:
 
 
Cash distribution
(35,447)
(32,827)
Additional borrowings on long-term debt
63,500 
27,800 
Repayments of long-term debt
(26,137)
(74,490)
Proceeds from public offering
 
103,207 
Proceeds from general partner contribution
89 
2,246 
Fees paid related to early extinguishment of debt
 
(4,010)
Cost of financing activities
(2,318)
(1,236)
Net cash provided by (used in) financing activities
(313)
20,690 
Net increase (decrease) in cash and cash equivalents
(3,930)
12,600 
Cash and cash equivalents-Beginning of period
12,058 
7,535 
Cash and cash equivalents-End of period
8,128 
20,135 
Supplemental disclosure of cash flow information
 
 
Cash paid during the period for interest
9,731 
9,897 
Cash paid during the period for income taxes
3,978 
2,242 
Non-cash investing and financing activities
 
 
Acquisition of assets by financing
199 
237 
Issuance of limited partner units for cemetery acquisition
4,103 
264 
Acquisition of asset by assumption of directly related liability
$ 2,048 
 
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 September 30, 2012, the Partnership operated 276 cemeteries, 258 of which are owned, in 26 states and Puerto Rico and owned and operated 85 funeral homes in 18 states and Puerto Rico.

Basis of Presentation

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

Principles of Consolidation

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

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

Use of Estimates

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

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

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

 

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

Customer receivables

   $ 156,224      $ 151,517   

Unearned finance income

     (18,017     (16,679

Allowance for contract cancellations

     (20,467     (17,582
  

 

 

   

 

 

 
     117,740        117,256   

Less: current portion, net of allowance

     48,109        48,837   
  

 

 

   

 

 

 

Long-term portion, net of allowance

   $ 69,631      $ 68,419   
  

 

 

   

 

 

 

Activity in the allowance for contract cancellations is as follows:

 

     For the nine months ended September 30,  
     2012     2011  
     (in thousands)  

Balance - Beginning of period

   $ 17,582      $ 15,832   

Provision for cancellations

     14,858        13,799   

Charge-offs - net

     (11,973     (10,315
  

 

 

   

 

 

 

Balance - End of period

   $ 20,467      $ 19,316   
  

 

 

   

 

 

 
CEMETERY PROPERTY
CEMETERY PROPERTY
3. CEMETERY PROPERTY

Cemetery property consists of the following:

 

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

Developed land

   $ 71,128       $ 64,266   

Undeveloped land

     168,724         164,723   

Mausoleum crypts and lawn crypts

     69,488         69,949   
  

 

 

    

 

 

 

Total

   $ 309,340       $ 298,938   
  

 

 

    

 

 

 
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT
4. PROPERTY AND EQUIPMENT

Major classes of property and equipment follow:

 

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

Building and improvements

   $ 82,565      $ 75,076   

Furniture and equipment

     40,180        36,863   
  

 

 

   

 

 

 
     122,745        111,939   

Less: accumulated depreciation

     (43,178     (38,162
  

 

 

   

 

 

 

Property and equipment - net

   $ 79,567      $ 73,777   
  

 

 

   

 

 

 

Depreciation expense was $1.7 million and $5.2 million for the three and nine months ended September 30, 2012, respectively, as compared to $1.4 million and $4.3 million during the same periods last year.

MERCHANDISE TRUSTS
MERCHANDISE TRUSTS
5. MERCHANDISE TRUSTS

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

 

   

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

 

   

Publicly traded mutual funds that invest in underlying debt securities;

 

   

Publicly traded mutual funds that invest in underlying equity securities;

 

   

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

 

   

Fixed maturity debt securities issued by various corporate entities;

 

   

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

 

   

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

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

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

The Company has included $7.4 million and $6.9 million of investments held in trust by the West Virginia Funeral Directors Association at September 30, 2012 and December 31, 2011, respectively, in its merchandise trust assets. As required by law, the Company deposits a portion of certain funeral merchandise sales in West Virginia into a trust that is held by the West Virginia Funeral Directors Association. These trusts are recorded at their account value, which approximates fair value.

 

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

 

As of September 30, 2012

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

Short-term investments

   $ 48,722       $ —         $ —        $ 48,722   

Fixed maturities:

          

U.S. Government and federal agency

     —           —           —          —     

U.S. State and local government agency

     23         —           —          23   

Corporate debt securities

     8,673         195         (127     8,741   

Other debt securities

     4,320         —           (7     4,313   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     13,016         195         (134     13,077   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

     97,886         2,699         (500     100,085   

Mutual funds - equity securities

     128,537         6,099         (3,264     131,372   

Equity securities

     65,897         3,100         (3,498     65,499   

Other invested assets

     6,569         18         —          6,587   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total managed investments

   $ 360,627       $ 12,111       $ (7,396   $ 365,342   
  

 

 

    

 

 

    

 

 

   

 

 

 

West Virginia Trust Receivable

     7,433         —           —          7,433   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 368,060       $ 12,111       $ (7,396   $ 372,775   
  

 

 

    

 

 

    

 

 

   

 

 

 

 

As of December 31, 2011

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

Short-term investments

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

Fixed maturities:

          

U.S. Government and federal agency

     —           —           —          —     

U.S. State and local government agency

     23         —           —          23   

Corporate debt securities

     10,537         19         (791     9,765   

Other debt securities

     1,100         —           —          1,100   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     11,660         19         (791     10,888   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

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

Mutual funds - equity securities

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

Equity securities

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

Other invested assets

     7,326         34         —          7,360   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total managed investments

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

 

 

    

 

 

    

 

 

   

 

 

 

West Virginia Trust Receivable

     6,894         —           —          6,894   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

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

 

 

    

 

 

    

 

 

   

 

 

 

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

 

As of September 30, 2012

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

U.S. Government and federal agency

   $ —         $ —         $ —         $ —     

U.S. State and local government agency

     23         —           —           —     

Corporate debt securities

     —           5,866         2,742         133   

Other debt securities

     4,313         —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

   $ 4,336       $ 5,866       $ 2,742       $ 133   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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

 

     Less than 12 months      12 Months or more      Total  

As of September 30, 2012

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

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

     1,065         29         1,716         98         2,781         127   

Other debt securities

     4,313         7         —           —           4,313         7   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     5,378         36         1,716         98         7,094         134   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     13,885         128         4,255         372         18,140         500   

Mutual funds - equity securities

     23,238         2,304         25,658         960         48,896         3,264   

Equity securities

     20,562         1,205         9,330         2,293         29,892         3,498   

Other invested assets

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 63,063       $ 3,673       $ 40,959       $ 3,723       $ 104,022       $ 7,396   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     Less than 12 months      12 Months or more      Total  

As of December 31, 2011

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

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

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

Other debt securities

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

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

Mutual funds - equity securities

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

Equity securities

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

Other invested assets

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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

 

Fair

Value @

12/31/2011

  

Contributions

  

Distributions

  

Interest/
Dividends

  

Capital

Gain
Distributions

  

Realized
Gain/ Loss

  

Taxes

  

Fees

  

Unrealized
Change in
Fair Value

  

Fair

Value @
9/30/2012

     (in thousands)

$ 344,515

  

46,695

   (46,816)    12,240    110    8,750    (3,511)    (1,860)    12,652    $372,775

The Company made net withdrawals from the trusts of approximately $0.1 million during the nine months ended September 30, 2012. During the nine months ended September 30, 2012, purchases and sales of securities available for sale included in trust investments were approximately $404.7 million and $403.5 million, respectively. Contributions include $12.0 million of assets that were acquired through acquisitions during the nine months ended September 30, 2012. Distributions include $5.8 million of assets that were divested as a result of the termination of an operating agreement during the nine months ended September 30, 2012.

Other-than-temporary Impairments of Trust Assets

During the nine months ended September 30, 2012, the Company determined that there were six securities with an aggregate cost basis of approximately $1.6 million and an aggregate fair value of approximately $0.8 million, resulting in an impairment of $0.8 million, wherein such impairment was considered to be other-than-temporary. During the three months ended September 30, 2012, the Company determined that there were no other than temporary impairments to the investment portfolio for merchandise trusts. During the nine months ended September 30, 2011, the Company determined that there was a single security with an aggregate cost basis of approximately $0.2 million and an aggregate fair value of approximately $0.1 million, resulting in an impairment of $0.1 million, wherein such impairment was considered to be other-than-temporary. During the three months ended September 30, 2011, the Company determined that there were no other than temporary impairments to the investment portfolio for merchandise trusts. Accordingly, the Company adjusted the cost basis of these assets to their current value and offset this change against deferred revenue. This reduction in deferred revenue will be reflected in earnings in future periods as the underlying merchandise is delivered or the underlying service is performed.

PERPETUAL CARE TRUSTS
PERPETUAL CARE TRUSTS
6. PERPETUAL CARE TRUSTS

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

 

   

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

 

   

Publicly traded mutual funds that invest in underlying debt securities;

 

   

Publicly traded mutual funds that invest in underlying equity securities;

 

   

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

 

   

Fixed maturity debt securities issued by various corporate entities;

 

   

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

 

   

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

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

 

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

 

As of September 30, 2012

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

Short-term investments

   $ 20,912       $ —         $ —        $ 20,912   

Fixed maturities:

          

U.S. Government and federal agency

     408         105         —          513   

U.S. State and local government agency

     66         81         —          147   

Corporate debt securities

     23,441         784         (327     23,898   

Other debt securities

     371         —           —          371   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     24,286         970         (327     24,929   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

     104,648         3,822         (537     107,933   

Mutual funds - equity securities

     93,917         6,138         (2,329     97,726   

Equity Securities

     23,346         8,201         (396     31,151   

Other invested assets

     —           —           —          —     
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 267,109       $ 19,131       $ (3,589   $ 282,651   
  

 

 

    

 

 

    

 

 

   

 

 

 

 

As of December 31, 2011

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

Short-term investments

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

Fixed maturities:

          

U.S. Government and federal agency

     408         105         —          513   

U.S. State and local government agency

     66         81         —          147   

Corporate debt securities

     23,359         229         (1,434     22,154   

Other debt securities

     371         —           —          371   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     24,204         415         (1,434     23,185   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

     61,700         185         (1,079     60,806   

Mutual funds - equity securities

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

Equity Securities

     39,199         9,326         (112     48,413   

Other invested assets

     327         156         (313     170   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

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

 

 

    

 

 

    

 

 

   

 

 

 

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

 

As of September 30, 2012

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

U.S. Government and federal agency

   $ 129       $ 384       $ —         $ —     

U.S. State and local government agency

     147         —           —           —     

Corporate debt securities

     50         16,127         7,295         426   

Other debt securities

     371         —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

   $ 697       $ 16,511       $ 7,295       $ 426   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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

 

     Less than 12 months      12 Months or more      Total  

As of September 30, 2012

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

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

     3,074         82         4,397         245         7,471         327   

Other debt securities

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     3,074         82         4,397         245         7,471         327   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     5,229         228         1,033         309         6,262         537   

Mutual funds - equity securities

     —           —           7,904         2,329         7,904         2,329   

Equity securities

     3,135         396         —           —           3,135         396   

Other invested assets

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 11,438       $ 706       $ 13,334       $ 2,883       $ 24,772       $ 3,589   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     Less than 12 months      12 Months or more      Total  

As of December 31, 2011

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

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

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

Other debt securities

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

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

Mutual funds - equity securities

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

Equity securities

     2,978         106         351         6         3,329         112   

Other invested assets

     170         313         —           —           170         313   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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

 

Fair

Value @

12/31/2011

  

Contributions

  

Distributions

  

Interest/
Dividends

  

Capital

Gain
Distributions

  

Realized
Gain/ Loss

  

Taxes

  

Fees

  

Unrealized
Change in
Fair Value

  

Fair

Value @
9/30/2012

     (in thousands)

$ 254,679

   13,715    (10,954)    12,310    13    1,213    (681)    (1,368)    13,724    $282,651

The Company made net contributions to the trusts of approximately $2.8 million during the nine months ended September 30, 2012. During the nine months ended September 30, 2012, purchases and sales of securities available for sale included in trust investments were approximately $250.6 million and $247.3 million, respectively. Contributions include $5.0 million of assets that were acquired through acquisitions during the nine months ended September 30, 2012.

Other-than-temporary Impairments of Trust Assets

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

 

During the nine months ended September 30, 2011, the Company determined that there was a single security with an aggregate cost basis of less than $0.1 million which was substantially impaired, and such impairment was considered to be other-than-temporary. Accordingly, the Company adjusted the cost basis of this asset to its current value and offset this change against the liability for perpetual care trust corpus. During the three months ended September 30, 2011, the Company determined that there were no other than temporary impairments to the investment portfolio for perpetual care trusts.

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

Goodwill

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

A rollforward of goodwill by reportable segment is as follows:

 

     Cemeteries      Funeral
Homes
     Total  
     Southeast      Northeast      West        
     (in thousands)  

Balance as of December 31, 2011

   $ 5,662       $ —         $ 11,948       $ 14,297       $ 31,907   

Goodwill resulting from acquisitions during the nine months ended September 30, 2012

     532         —           —           7,954         8,486   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of September 30, 2012

   $ 6,194       $ —         $ 11,948       $ 22,251       $ 40,393   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

During the second quarter of 2012, the Company became aware that it will receive a payment of $3.8 million in a legal settlement related to its fourth quarter 2011 acquisition of cemeteries and funeral homes in Tennessee. In addition, there were other adjustments of $0.3 million related to an increase in merchandise trust assets and a small increase in accounts receivable. These amounts have been recorded retrospectively as a purchase price adjustment for this acquisition resulting in a decrease to goodwill of $4.1 million. Also, during the third quarter of 2012, the Company obtained additional information about its third quarter 2011 acquisition in Puerto Rico which resulted in a reduction of goodwill of $0.4 million. See Note 13 for further details. These adjustments have been reflected in the balance as of December 31, 2011 in the table above.

Other Acquired Intangible Assets

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

 

    

As of

September 30, 2012

    Net     

As of

December 31, 2011

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

Amortized Intangible Assets:

               

Underlying contract value

   $ 6,239       $ (503   $ 5,736       $ 8,484       $ (546   $ 7,938   

Non-compete agreements

     5,415         (2,136     3,279         3,820         (1,413     2,407   

Other intangible assets

     269         (77     192         205         (67     138   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total Intangible Assets

   $ 11,923       $ (2,716   $ 9,207       $ 12,509       $ (2,026   $ 10,483   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

The decrease in the underlying contract value is mostly the result of the Company entering into an amended operating agreement with Kingwood Memorial Park Association in January of 2012. See Note 13 for further details.

The increase in non-compete agreements was the result of acquisitions consummated in the second and third quarters of 2012. See Note 13 for further details.

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

The Company had the following outstanding debt:

 

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

Insurance premium financing

   $ 504       $ 211   

Vehicle financing

     953         1,147   

Acquisition Credit Facility, due January 2017

     —           10,750   

Revolving Credit Facility, due January 2017

     84,700         33,000   

Note Payable - Greenlawn acquisition

     1,214         1,321   

Note Payable - Nelms acquisition (net of discount)

     363         623   

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

     3,062         1,490   

10.25% senior notes, due 2017

     150,000         150,000   
  

 

 

    

 

 

 

Total

     240,796         198,542   

Less current portion

     1,770         1,487   

Less unamortized bond discount

     2,908         3,220   
  

 

 

    

 

 

 

Long-term portion

   $ 236,118       $ 193,835   
  

 

 

    

 

 

 

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

10.25% Senior Notes due 2017

The Company has outstanding a $150.0 million aggregate principal amount of 10.25% Senior Notes due 2017 (the “Senior Notes”), with an original issue discount of approximately $4.0 million. The Company pays 10.25% interest per annum on the principal amount of the Senior Notes, payable in cash semi-annually in arrears on June 1 and December 1 of each year. The Senior Notes mature on December 1, 2017. The Company’s Senior Notes are considered to be a Level 2 liability as defined by the Fair Value Measurements and Disclosures topic of the ASC. Based on trades made at the end of the quarter, the Company has estimated the fair value of its Senior Notes to be in excess of par and trading at a premium of 1.54%.

Credit Facility

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

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

At September 30, 2012, amounts outstanding under the Credit Facility bear interest at rates between 3.7% and 4.2%. Amounts borrowed may be either Base Rate Loans or Eurodollar Rate Loans and amounts repaid or prepaid during the term may be reborrowed. Depending on the type of loan, borrowings bear interest at the Base Rate or Eurodollar Rate, plus applicable margins ranging from 1.25% to 2.75% and 2.25% to 3.75%, respectively, depending on the Company’s Consolidated Leverage Ratio. The Base Rate is the highest of the Prime Rate, the Federal Funds Rate plus 0.50%, or the Eurodollar Rate plus 1.0%. The Eurodollar rate is the British Bankers Association LIBOR Rate. Amounts outstanding under the Revolving Credit Facility approximate their fair value.

 

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

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

INCOME TAXES
INCOME TAXES
9. INCOME TAXES

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

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

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

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

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

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

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

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

 

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

Deferred cemetery revenue

   $ 333,439      $ 306,488   

Deferred merchandise trust revenue

     59,597        50,419   

Deferred merchandise trust unrealized gains (losses)

     4,715        (7,937

Deferred pre-acquisition margin

     133,141        135,043   

Deferred cost of goods sold

     (45,951     (42,335
  

 

 

   

 

 

 

Deferred cemetery revenues, net

   $ 484,941      $ 441,678   
  

 

 

   

 

 

 

Deferred selling and obtaining costs

   $ 73,904      $ 68,542   

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

COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES
11. COMMITMENTS AND CONTINGENCIES

Legal

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

Leases

At September 30, 2012, the Company was committed to operating lease payments for premises, automobiles and office equipment under various operating leases with initial terms ranging from one to ten years and options to renew at varying terms. Expenses under operating leases were $0.6 million and $1.9 million for the three and nine months ended September 30, 2012, respectively, and $0.6 million and $1.7 million for the three and nine months ended September 30 2011, respectively.

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

 

     (in thousands)  

2013

   $ 2,074   

2014

     1,363   

2015

     869   

2016

     801   

2017

     754   

Thereafter

     1,892   
  

 

 

 

Total

   $ 7,753   
  

 

 

 
PARTNERS' CAPITAL
PARTNERS' CAPITAL
12. PARTNERS’ CAPITAL

Unit-Based Compensation

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

 

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

 

     Three months ended
September 30,
     Nine months ended
September 30,
 
     2012      2011      2012      2011  
     (in thousands)      (in thousands)  

Unit appreciation rights

   $ 133       $ 119       $ 381       $ 358   

Restricted phantom units

     83         76         244         218   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total unit-based compensation expense

   $ 216       $ 195       $ 625       $ 576   
  

 

 

    

 

 

    

 

 

    

 

 

 

As of September 30, 2012, there was approximately $0.8 million in non-vested unit appreciation rights outstanding. These unit appreciation rights will be expensed through the first quarter of 2014.

Other Unit Issuances

On June 6, 2012 and July 31, 2012, the Company issued 13,720 units and 128,299 units, respectively, in connection with separate acquisitions. See Note 13. On June 21, 2012 and 2011, the Company issued 9,853 units in connection with an acquisition consummated in the second quarter of 2010.

ACQUISITIONS
ACQUISITIONS
13. ACQUISITIONS

First Quarter 2012 Acquisition

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

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

 

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

 

     Preliminary
Assessment
 
     (in thousands)  

Net Assets Acquired:

  

Accounts receivable

   $ 66   

Cemetery property

     3,001   

Property and equipment

     102   
  

 

 

 

Total net assets acquired

     3,169   
  

 

 

 

Assets and Liabilities divested:

  

Note payable to Kingwood

     519   

Intangible asset representing underlying contract value

     (2,236
  

 

 

 

Fair value of net assets acquired and divested

     1,452   
  

 

 

 

Consideration paid

     1,652   
  

 

 

 

Goodwill from purchase

   $ 200   
  

 

 

 

Second Quarter 2012 Acquisitions

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

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

 

     Preliminary
Assessment
 
     (in thousands)  

Assets:

  

Accounts receivable

   $ 72   

Cemetery property

     842   

Property and equipment

     518   

Perpetual care trusts, restricted, at fair value

     2,780   

Non-compete agreements

     12   
  

 

 

 

Total assets

     4,224   
  

 

 

 

Liabilities:

  

Perpetual care trust corpus

     2,780   

Other liabilities

     24   

Deferred tax liability

     374   
  

 

 

 

Total liabilities

     3,178   
  

 

 

 

Fair value of net assets acquired

     1,046   
  

 

 

 

Consideration paid

     924   
  

 

 

 

Gain on bargain purchase

   $ 122   
  

 

 

 

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

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

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

 

     Preliminary
Assessment
 
     (in thousands)  

Assets:

  

Property and equipment

   $ 48   

Merchandise trusts, restricted, at fair value

     105   

Underlying lease value

     64   

Non-compete agreements

     40   
  

 

 

 

Total assets

     257   
  

 

 

 

Liabilities:

  

Merchandise liabilities

     105   
  

 

 

 

Total liabilities

     105   
  

 

 

 

Fair value of net assets acquired

     152   
  

 

 

 

Consideration paid - cash

     850   

Consideration paid - units

     350   

Fair value of debt assumed for non-compete agreements

     544   
  

 

 

 

Total consideration paid

     1,744   
  

 

 

 

Goodwill from purchase

   $ 1,592   
  

 

 

 

Third Quarter 2012 Acquisitions

On July 2, 2012, certain subsidiaries of the Company (collectively the “Buyer) entered into an Asset Purchase and Sale Agreement (the “Farnstrom Agreement”) with Farnstrom Mortuary, LLC and Farnstrom Properties, LLC, both Oregon limited liability companies, Farnstrom Family, Inc. and Care Cremation Society, Inc., both Oregon corporations and two individuals (collectively the “Seller”). Pursuant to the Agreement, the Buyer acquired five funeral homes in Oregon, including certain related assets, and assumed certain related liabilities. In consideration for the net assets acquired, the Buyer paid the Seller $2.3 million in cash. The Buyer will also pay an aggregate amount of $0.3 million in equal quarterly installments commencing on July 2, 2012 in exchange for non-compete agreements with the Seller.

 

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

 

     Preliminary
Assessment
 
     (in thousands)  

Assets:

  

Property and equipment

   $ 1,296   

Non-compete agreements

     170   
  

 

 

 

Total assets

     1,466   
  

 

 

 

Total liabilities

     —     
  

 

 

 

Fair value of net assets acquired

     1,466   
  

 

 

 

Consideration paid - cash

     2,300   

Fair value of debt assumed for non-compete agreements

     274   
  

 

 

 

Total consideration paid

     2,574   
  

 

 

 

Goodwill from purchase

   $ 1,108   
  

 

 

 

In addition, on July 31, 2012, certain subsidiaries of the Company (collectively the “Buyer”) entered into an Asset Purchase and Sale Agreement (the “Lohman Agreement”) with Certain Florida corporations, limited liability companies and four individuals (collectively the “Seller”). Pursuant to the Agreement, the Buyer acquired nine funeral homes and four cemeteries in Florida, including certain related assets, and assumed certain related liabilities.

In consideration for the net assets acquired, the Buyer paid the Seller $20.0 million in cash and issued 128,299 units, which equates to $3.5 million worth of units. The Buyer will also pay an aggregate amount of $1.5 million in five equal annual installments commencing on August 1, 2013 in exchange for a consulting and non-compete agreement with the Seller.

 

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

 

     Preliminary
Assessment
 
     (in thousands)  

Assets:

  

Accounts receivable

   $ 1,005   

Cemetery property

     6,100   

Property and equipment

     5,864   

Merchandise trusts, restricted , at fair value

     11,884   

Perpetual care trusts, restricted, at fair value

     2,232   

Other assets

     122   

Non-compete agreements

     1,373   
  

 

 

 

Total assets

     28,580   
  

 

 

 

Liabilities:

  

Deferred margin

     3,746   

Merchandise liabilities

     3,458   

Perpetual care trust corpus

     2,232   
  

 

 

 

Total liabilities

     9,436   
  

 

 

 

Fair value of net assets acquired

     19,144   
  

 

 

 

Consideration paid - cash

     20,000   

Consideration paid - units

     3,500   

Fair value of debt assumed for non-compete agreements

     1,230   
  

 

 

 

Total consideration paid

     24,730   
  

 

 

 

Goodwill from purchase

   $ 5,586   
  

 

 

 

First, Second and Third Quarter 2011 Acquisitions

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

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

On August 1, 2011, the Operating Company and CFS West Virginia, an affiliate of the Operating Company, (collectively the “Buyer”) entered into a Stock Purchase Agreement with three individuals (collectively the “Seller”) to purchase all of the stock of Prince George Cemetery Corporation, a Virginia corporation. Through the purchase of Prince George Cemetery Corporation, the Buyer acquired one cemetery in Virginia. In consideration for the stock acquired, the Buyer paid the Seller approximately $1.9 million in cash. The Buyer will also pay $0.3 million in cash in even quarterly installments over a five year period in exchange for non-compete agreements with the Seller.

 

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

 

     Final
Assessment
 

Assets:

  

Accounts receivable

   $ 211   

Cemetery property

     4,833   

Merchandise trusts, restricted, at fair value

     4,069   

Perpetual care trusts, restricted, at fair value

     2,438   

Property and equipment

     2,303   

Other assets

     260   
  

 

 

 

Total assets

     14,114   
  

 

 

 

Liabilities:

  

Deferred margin

     2,457   

Merchandise liabilities

     2,719   

Perpetual care trust corpus

     2,438   

Deferred tax liability

     1,287   
  

 

 

 

Total liabilities

     8,901   
  

 

 

 

Fair value of net assets acquired

     5,213   
  

 

 

 

Consideration paid

     5,700   

Fair value of debt assumed for non-compete agreements

     280   
  

 

 

 

Total consideration paid

     5,980   
  

 

 

 

Goodwill from purchase

   $ 767   
  

 

 

 

In addition to the aforementioned 2011 acquisitions, on August 17, 2011, the Operating Company, StoneMor Puerto Rico LLC, a Puerto Rico limited liability company and StoneMor Puerto Rico Subsidiary LLC, a Puerto Rico limited liability company, each a wholly-owned subsidiary of the Company (collectively the “Buyer”), entered into a Stock Purchase Agreement with Alderwoods Group, LLC, a Delaware limited liability company (the “Seller” or “SCI Puerto Rico”) to purchase all of the stock of SCI Puerto Rico Funeral and Cemetery Services, Inc., a Puerto Rico corporation. Through the purchase of SCI Puerto Rico Funeral and Cemetery Services, Inc., the Buyer acquired five cemeteries and four funeral homes in Puerto Rico. In consideration for the stock acquired, the Buyer paid the Seller $4.6 million in cash.

 

The table below reflects the Company’s final assessment of the fair value of net assets acquired, the purchase price and the resulting goodwill from the purchase and displays the adjustments made to the revised values reported at December 31, 2011. The Company obtained additional information in the third quarter of 2012 and has retrospectively adjusted these values as noted below.

 

     Revised
Assessment
     Adjustments     Final
Assessment
 
     (in thousands)  

Assets:

       

Accounts receivable

   $ 4,575       $ 25      $ 4,600   

Cemetery property

     4,666         —          4,666   

Perpetual care trusts, restricted, at fair value

     981         —          981   

Property and equipment

     4,124         —          4,124   
  

 

 

    

 

 

   

 

 

 

Total assets

     14,346         25        14,371   
  

 

 

    

 

 

   

 

 

 

Liabilities:

       

Deferred margin

     5,217         (200     5,017   

Merchandise liabilities

     4,799         (167     4,632   

Deferred tax liability

     766         —          766   

Perpetual care trust corpus

     981         —          981   
  

 

 

    

 

 

   

 

 

 

Total liabilities

     11,763         (367     11,396   
  

 

 

    

 

 

   

 

 

 

Fair value of net assets acquired

     2,583         392        2,975   
  

 

 

    

 

 

   

 

 

 

Consideration paid

     4,600         —          4,600   
  

 

 

    

 

 

   

 

 

 

Goodwill from purchase

   $ 2,017       $ (392   $ 1,625   
  

 

 

    

 

 

   

 

 

 

If the acquisitions from 2012 had been consummated on January 1, 2011, on a pro forma basis, for the three and nine months ended September 30, 2011, consolidated revenues would have been $62.5 million and $176.2 million, respectively, consolidated net income (loss) would have been $0.3 million and $(5.1) million, respectively and net income (loss) per limited partner unit (basic and diluted) would have been $0.01 and $(0.27), respectively. Further, on a pro forma basis, for the three and nine months ended September 30, 2012, consolidated revenues would have been $62.7 million and $187.7 million, respectively, consolidated net income would have been $1.1 million and $1.9 million, respectively and net income per limited partner unit (basic and diluted) would have been $0.06 and $0.10, respectively. These pro forma results are unaudited and have been prepared for comparative purposes only and include certain adjustments such as increased interest on the acquisition of debt. They do not purport to be indicative of the results of operations which actually would have resulted had the combination been in effect on January 1, 2011 or of future results of operations of the locations. Since their respective dates of acquisition, our properties acquired in 2012 have contributed $1.7 million and $2.1 million of revenue and $0.4 million and $0.5 million of operating profit for the three and nine months ended September 30, 2012, respectively.

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

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

First Quarter 2012 Contract Termination

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

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

 

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

SEGMENT INFORMATION
SEGMENT INFORMATION
14. SEGMENT INFORMATION

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

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

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

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

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

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

 

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

 

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

Revenues

                  

Sales

   $ 24,723       $ 8,087       $ 9,420       $ —         $ —        $ (8,107   $ 34,123   

Service and other

     9,084         6,108         8,045         —           —          (3,989     19,248   

Funeral home

     —           —           —           9,603         —          (777     8,826   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

     33,807         14,195         17,465         9,603         —          (12,873     62,197   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Costs and expenses

                  

Cost of sales

     5,208         2,156         1,628         —           52        (1,398     7,646   

Cemetery

     6,635         3,574         4,042         —           1        —          14,252   

Selling

     7,356         2,762         2,875         —           163        (1,866     11,290   

General and administrative

     3,694         1,486         1,828         —           7        —          7,015   

Corporate overhead

     —           —           —           —           6,546        —          6,546   

Depreciation and amortization

     513         220         551         529         386        —          2,199   

Funeral home

     —           —           —           7,161         —          (65     7,096   

Acquisition related costs

     —           —           —           —           1,085        —          1,085   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total costs and expenses

     23,406         10,198         10,924         7,690         8,240        (3,329     57,129   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating profit

   $ 10,401       $ 3,997       $ 6,541       $ 1,913       $ (8,240   $ (9,544   $ 5,068   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 512,446       $ 297,736       $ 393,685       $ 104,914       $ 21,156      $ —        $ 1,329,937   

Amortization of cemetery property

   $ 1,396       $ 526       $ 275       $ —         $ —        $ 108      $ 2,305   

Long lived asset additions

   $ 6,641       $ 1,133       $ 684       $ 8,023       $ 64      $ —        $ 16,545   

Goodwill

   $ 6,194       $ —         $ 11,948       $ 22,251       $ —        $ —        $ 40,393   

As of and for the nine months ended September 30, 2012:

 

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

Revenues

                  

Sales

   $ 69,415       $ 26,090       $ 29,743       $ —         $ —        $ (25,988   $ 99,260   

Service and other

     27,867         19,820         22,940         —           —          (12,213     58,414   

Funeral home

     —           —           —           27,065         —          (1,447     25,618   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

     97,282         45,910         52,683         27,065         —          (39,648     183,292   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Costs and expenses

                  

Cost of sales

     14,471         5,857         5,031         —           104        (4,161     21,302   

Cemetery

     19,085         10,453         12,280         —           1        —          41,819   

Selling

     22,072         9,220         9,482         —           995        (5,569     36,200   

General and administrative

     11,130         4,499         5,751         —           23        —          21,403   

Corporate overhead

     —           —           —           —           20,905        —          20,905   

Depreciation and amortization

     1,559         660         1,666         1,667         1,207        —          6,759   

Funeral home

     —           —           —           20,648         —          (181     20,467   

Acquisition related costs

     —           —           —           —           2,198        —          2,198   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total costs and expenses

     68,317         30,689         34,210         22,315         25,433        (9,911     171,053   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating profit

   $ 28,965       $ 15,221       $ 18,473       $ 4,750       $ (25,433   $ (29,737   $ 12,239   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 512,446       $ 297,736       $ 393,685       $ 104,914       $ 21,156      $ —        $ 1,329,937   

Amortization of cemetery property

   $ 3,397       $ 1,939       $ 844       $ —         $ —        $ 105      $ 6,285   

Long lived asset additions

   $ 11,435       $ 2,490       $ 3,889       $ 8,361       $ 670      $ —        $ 26,845   

Goodwill

   $ 6,194       $ —         $ 11,948       $ 22,251       $ —        $ —        $ 40,393   

 

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

 

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

Revenues

                  

Sales

   $ 19,480       $ 7,744       $ 11,939       $ —         $ —        $ (5,000   $ 34,163   

Service and other

     7,354         6,007         7,136         —           —          (1,834     18,663   

Funeral home

     —           —           —           7,705         —          (206     7,499   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

     26,834         13,751         19,075         7,705         —          (7,040     60,325   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Costs and expenses

                  

Cost of sales

     4,056         1,965         2,127         —           —          (988     7,160   

Cemetery

     6,009         3,770         5,533         —           —          —          15,312   

Selling

     6,686         2,693         3,621         —           130        (938     12,192   

General and administrative

     3,279         1,535         2,297         —           —          —          7,111   

Corporate overhead

     —           —           —           —           5,628        —          5,628   

Depreciation and amortization

     425         219         444         391         407        —          1,886   

Funeral home

     —           —           —           5,868         —          —          5,868   

Acquisition related costs

     —           —           —           —           1,189        —          1,189   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total costs and expenses

     20,455         10,182         14,022         6,259         7,354        (1,926     56,346   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating profit

   $ 6,379       $ 3,569       $ 5,053       $ 1,446       $ (7,354   $ (5,114   $ 3,979   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 438,032       $ 275,081       $ 365,985       $ 54,895       $ 35,865      $ —        $ 1,169,858   

Amortization of cemetery property

   $ 839       $ 442       $ 441       $ —         $ —        $ (268   $ 1,454   

Long lived asset additions

   $ 7,013       $ 436       $ 1,841       $ 5,133       $ 236      $ —        $ 14,659   

Goodwill

   $ 2,700       $ —         $ 11,949       $ 5,897       $ —        $ —        $ 20,546   

As of and for the nine months ended September 30, 2011:

 

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

Revenues

                  

Sales

   $ 59,448       $ 24,277       $ 34,960       $ —         $ 5      $ (25,203   $ 93,487   

Service and other

     23,533         17,586         22,207         —           —          (9,344     53,982   

Funeral home

     —           —           —           22,749         —          (555     22,194   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

     82,981         41,863         57,167         22,749         5        (35,102     169,663   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Costs and expenses

                  

Cost of sales

     12,128         5,281         5,743         —           —          (3,783     19,369   

Cemetery

     17,036         10,739         15,085         —           —          —          42,860   

Selling

     20,292         8,464         10,336         —           807        (5,976     33,923   

General and administrative

     9,547         4,555         6,469         —           (2     —          20,569   

Corporate overhead

     —           —           —           —           17,572        —          17,572   

Depreciation and amortization

     1,183         663         1,686         1,118         1,724        —          6,374   

Funeral home

     —           —           —           16,875         —          —          16,875   

Acquisition related costs

     —           —           —           —           3,147        —          3,147   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total costs and expenses

     60,186         29,702         39,319         17,993         23,248        (9,759     160,689   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating profit

   $ 22,795       $ 12,161       $ 17,848       $ 4,756       $ (23,243   $ (25,343   $ 8,974   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 438,032       $ 275,081       $ 365,985       $ 54,895       $ 35,865      $ —        $ 1,169,858   

Amortization of cemetery property

   $ 2,592       $ 1,582       $ 835       $ —         $ —        $ (597   $ 4,412   

Long lived asset additions

   $ 10,900       $ 1,239       $ 5,062       $ 7,269       $ 540      $ —        $ 25,010   

Goodwill

   $ 2,700       $ —         $ 11,949       $ 5,897       $ —        $ —        $ 20,546   

 

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

FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS
15. FAIR VALUE MEASUREMENTS

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

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

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

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

 

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

As of September 30, 2012

Merchandise Trust

 

Description

   Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 48,722       $ —         $ 48,722   

Fixed maturities:

        

U.S. government and federal agency

     —           —           —     

U.S. state and local government agency

     —           23         23   

Corporate debt securities

     —           8,741         8,741   

Other debt securities

     —           4,313         4,313   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     —           13,077         13,077   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     100,085         —           100,085   

Mutual funds - equity securities - real estate sector

     43,432         —           43,432   

Mutual funds - equity securities - energy sector

     5,767         —           5,767   

Mutual funds - equity securities - MLP’s

     28,476         —           28,476   

Mutual funds - equity securities - other

     53,697         —           53,697   

Equity securities

        

Preferred REIT’s

     1,638         —           1,638   

Master limited partnerships

     41,378         —           41,378   

Global equity securities

     22,483         —           22,483   

Other invested assets

     —           6,587         6,587   
  

 

 

    

 

 

    

 

 

 

Total

   $ 345,678       $ 19,664       $ 365,342   
  

 

 

    

 

 

    

 

 

 

Perpetual Care Trust

 

Description

   Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 20,912       $ —         $ 20,912   

Fixed maturities:

        

U.S. government and federal agency

     513         —           513   

U.S. state and local government agency

     —           147         147   

Corporate debt securities

     —           23,898         23,898   

Other debt securities

     —           371         371   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     513         24,416         24,929   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     107,933         —           107,933   

Mutual funds - equity securities - real estate sector

     39,083         —           39,083   

Mutual funds - equity securities - energy sector

     12,911         —           12,911   

Mutual funds - equity securities - MLP’s

     36,583         —           36,583   

Mutual funds - equity securities - other

     9,149         —           9,149   

Equity securities

        

Preferred REIT’s

     953         —           953   

Master limited partnerships

     29,453         —           29,453   

Global equity securities

     745         —           745   

Other invested assets

     —           —           —     
  

 

 

    

 

 

    

 

 

 

Total

   $ 258,235       $ 24,416       $ 282,651   
  

 

 

    

 

 

    

 

 

 

 

As of December 31, 2011

Merchandise Trust

 

Description

   Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 38,312       $ —         $ 38,312   

Fixed maturities:

        

U.S. government and federal agency

     —           —           —     

U.S. state and local government agency

     —           23         23   

Corporate debt securities

     —           9,765         9,765   

Other debt securities

     —           1,100         1,100   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     —           10,888         10,888   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     67,421         —           67,421   

Mutual funds - equity securities - real estate sector

     22,847         —           22,847   

Mutual funds - equity securities - energy sector

     28,057         —           28,057   

Mutual funds - equity securities - MLP’s

     20,308         —           20,308   

Mutual funds - equity securities - other

     70,076         —           70,076   

Equity securities

        

Preferred REIT’s

     9,001         —           9,001   

Master limited partnerships

     41,469         —           41,469   

Global equity securities

     21,882         —           21,882   

Other invested assets

     —           7,360         7,360   
  

 

 

    

 

 

    

 

 

 

Total

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

 

 

    

 

 

    

 

 

 

Perpetual Care Trust

 

Description

   Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 22,607       $ —         $ 22,607   

Fixed maturities:

        

U.S. government and federal agency

     513         —           513   

U.S. state and local government agency

     —           147         147   

Corporate debt securities

     —           22,154         22,154   

Other debt securities

     —           371         371   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     513         22,672         23,185   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     60,806         —           60,806   

Mutual funds - equity securities - real estate sector

     24,580         —           24,580   

Mutual funds - equity securities - energy sector

     20,069         —           20,069   

Mutual funds - equity securities - MLP’s

     13,515         —           13,515   

Mutual funds - equity securities - other

     41,334         —           41,334   

Equity securities

        

Preferred REIT’s

     19,720         —           19,720   

Master limited partnerships

     27,998         —           27,998   

Global equity securities

     695         —           695   

Other invested assets

     —           170         170   
  

 

 

    

 

 

    

 

 

 

Total

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

 

 

    

 

 

    

 

 

 

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

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 September 30, 2012, the Partnership operated 276 cemeteries, 258 of which are owned, in 26 states and Puerto Rico and owned and operated 85 funeral homes in 18 states and Puerto Rico.

Basis of Presentation

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

Principles of Consolidation

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

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

Use of Estimates

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

LONG-TERM ACCOUNTS RECEIVABLE, NET OF ALLOWANCE (Tables)

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

 

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

Customer receivables

   $ 156,224      $ 151,517   

Unearned finance income

     (18,017     (16,679

Allowance for contract cancellations

     (20,467     (17,582
  

 

 

   

 

 

 
     117,740        117,256   

Less: current portion, net of allowance

     48,109        48,837   
  

 

 

   

 

 

 

Long-term portion, net of allowance

   $ 69,631      $ 68,419   
  

 

 

   

 

 

 

Activity in the allowance for contract cancellations is as follows:

 

     For the nine months ended September 30,  
     2012     2011  
     (in thousands)  

Balance - Beginning of period

   $ 17,582      $ 15,832   

Provision for cancellations

     14,858        13,799   

Charge-offs - net

     (11,973     (10,315
  

 

 

   

 

 

 

Balance - End of period

   $ 20,467      $ 19,316   
  

 

 

   

 

 

 
PROPERTY AND EQUIPMENT (Tables)

Major classes of property and equipment follow:

 

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

Building and improvements

   $ 82,565      $ 75,076   

Furniture and equipment

     40,180        36,863   
  

 

 

   

 

 

 
     122,745        111,939   

Less: accumulated depreciation

     (43,178     (38,162
  

 

 

   

 

 

 

Property and equipment - net

   $ 79,567      $ 73,777   
  

 

 

   

 

 

 

Cemetery property consists of the following:

 

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

Developed land

   $ 71,128       $ 64,266   

Undeveloped land

     168,724         164,723   

Mausoleum crypts and lawn crypts

     69,488         69,949   
  

 

 

    

 

 

 

Total

   $ 309,340       $ 298,938   
  

 

 

    

 

 

 
PERPETUAL CARE TRUSTS (Tables) (Variable Interest Entity, Primary Beneficiary)

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

 

As of September 30, 2012

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

Short-term investments

   $ 48,722       $ —         $ —        $ 48,722   

Fixed maturities:

          

U.S. Government and federal agency

     —           —           —          —     

U.S. State and local government agency

     23         —           —          23   

Corporate debt securities

     8,673         195         (127     8,741   

Other debt securities

     4,320         —           (7     4,313   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     13,016         195         (134     13,077   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

     97,886         2,699         (500     100,085   

Mutual funds - equity securities

     128,537         6,099         (3,264     131,372   

Equity securities

     65,897         3,100         (3,498     65,499   

Other invested assets

     6,569         18         —          6,587   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total managed investments

   $ 360,627       $ 12,111       $ (7,396   $ 365,342   
  

 

 

    

 

 

    

 

 

   

 

 

 

West Virginia Trust Receivable

     7,433         —           —          7,433   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 368,060       $ 12,111       $ (7,396   $ 372,775   
  

 

 

    

 

 

    

 

 

   

 

 

 

 

As of December 31, 2011

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

Short-term investments

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

Fixed maturities:

          

U.S. Government and federal agency

     —           —           —          —     

U.S. State and local government agency

     23         —           —          23   

Corporate debt securities

     10,537         19         (791     9,765   

Other debt securities

     1,100         —           —          1,100   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     11,660         19         (791     10,888   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

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

Mutual funds - equity securities

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

Equity securities

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

Other invested assets

     7,326         34         —          7,360   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total managed investments

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

 

 

    

 

 

    

 

 

   

 

 

 

West Virginia Trust Receivable

     6,894         —           —          6,894   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

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

 

 

    

 

 

    

 

 

   

 

 

 

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

 

As of September 30, 2012

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

U.S. Government and federal agency

   $ —         $ —         $ —         $ —     

U.S. State and local government agency

     23         —           —           —     

Corporate debt securities

     —           5,866         2,742         133   

Other debt securities

     4,313         —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

   $ 4,336       $ 5,866       $ 2,742       $ 133   
  

 

 

    

 

 

    

 

 

    

 

 

 

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

 

     Less than 12 months      12 Months or more      Total  

As of September 30, 2012

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

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

     1,065         29         1,716         98         2,781         127   

Other debt securities

     4,313         7         —           —           4,313         7   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     5,378         36         1,716         98         7,094         134   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     13,885         128         4,255         372         18,140         500   

Mutual funds - equity securities

     23,238         2,304         25,658         960         48,896         3,264   

Equity securities

     20,562         1,205         9,330         2,293         29,892         3,498   

Other invested assets

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 63,063       $ 3,673       $ 40,959       $ 3,723       $ 104,022       $ 7,396   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     Less than 12 months      12 Months or more      Total  

As of December 31, 2011

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

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

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

Other debt securities

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

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

Mutual funds - equity securities

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

Equity securities

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

Other invested assets

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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

 

Fair

Value @

12/31/2011

  

Contributions

  

Distributions

  

Interest/
Dividends

  

Capital

Gain
Distributions

  

Realized
Gain/ Loss

  

Taxes

  

Fees

  

Unrealized
Change in
Fair Value

  

Fair

Value @
9/30/2012

     (in thousands)

$ 344,515

  

46,695

   (46,816)    12,240    110    8,750    (3,511)    (1,860)    12,652    $372,775

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

 

As of September 30, 2012

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

Short-term investments

   $ 20,912       $ —         $ —        $ 20,912   

Fixed maturities:

          

U.S. Government and federal agency

     408         105         —          513   

U.S. State and local government agency

     66         81         —          147   

Corporate debt securities

     23,441         784         (327     23,898   

Other debt securities

     371         —           —          371   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     24,286         970         (327     24,929   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

     104,648         3,822         (537     107,933   

Mutual funds - equity securities

     93,917         6,138         (2,329     97,726   

Equity Securities

     23,346         8,201         (396     31,151   

Other invested assets

     —           —           —          —     
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 267,109       $ 19,131       $ (3,589   $ 282,651   
  

 

 

    

 

 

    

 

 

   

 

 

 

 

As of December 31, 2011

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

Short-term investments

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

Fixed maturities:

          

U.S. Government and federal agency

     408         105         —          513   

U.S. State and local government agency

     66         81         —          147   

Corporate debt securities

     23,359         229         (1,434     22,154   

Other debt securities

     371         —           —          371   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     24,204         415         (1,434     23,185   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

     61,700         185         (1,079     60,806   

Mutual funds - equity securities

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

Equity Securities

     39,199         9,326         (112     48,413   

Other invested assets

     327         156         (313     170   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

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

 

 

    

 

 

    

 

 

   

 

 

 

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

 

As of September 30, 2012

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

U.S. Government and federal agency

   $ 129       $ 384       $ —         $ —     

U.S. State and local government agency

     147         —           —           —     

Corporate debt securities

     50         16,127         7,295         426   

Other debt securities

     371         —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

   $ 697       $ 16,511       $ 7,295       $ 426   
  

 

 

    

 

 

    

 

 

    

 

 

 

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

 

     Less than 12 months      12 Months or more      Total  

As of September 30, 2012

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

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

     3,074         82         4,397         245         7,471         327   

Other debt securities

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     3,074         82         4,397         245         7,471         327   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     5,229         228         1,033         309         6,262         537   

Mutual funds - equity securities

     —           —           7,904         2,329         7,904         2,329   

Equity securities

     3,135         396         —           —           3,135         396   

Other invested assets

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 11,438       $ 706       $ 13,334       $ 2,883       $ 24,772       $ 3,589   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     Less than 12 months      12 Months or more      Total  

As of December 31, 2011

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

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

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

Other debt securities

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

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

Mutual funds - equity securities

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

Equity securities

     2,978         106         351         6         3,329         112   

Other invested assets

     170         313         —           —           170         313   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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

 

Fair

Value @

12/31/2011

  

Contributions

  

Distributions

  

Interest/
Dividends

  

Capital

Gain
Distributions

  

Realized
Gain/ Loss

  

Taxes

  

Fees

  

Unrealized
Change in
Fair Value

  

Fair

Value @
9/30/2012

     (in thousands)

$ 254,679

   13,715    (10,954)    12,310    13    1,213    (681)    (1,368)    13,724    $282,651
GOODWILL AND INTANGIBLE ASSETS (Tables)

A rollforward of goodwill by reportable segment is as follows:

 

     Cemeteries      Funeral
Homes
     Total  
     Southeast      Northeast      West        
     (in thousands)  

Balance as of December 31, 2011

   $ 5,662       $ —         $ 11,948       $ 14,297       $ 31,907   

Goodwill resulting from acquisitions during the nine months ended September 30, 2012

     532         —           —           7,954         8,486   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of September 30, 2012

   $ 6,194       $ —         $ 11,948       $ 22,251       $ 40,393   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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

 

    

As of

September 30, 2012

    Net     

As of

December 31, 2011

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

Amortized Intangible Assets:

               

Underlying contract value

   $ 6,239       $ (503   $ 5,736       $ 8,484       $ (546   $ 7,938   

Non-compete agreements

     5,415         (2,136     3,279         3,820         (1,413     2,407   

Other intangible assets

     269         (77     192         205         (67     138   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total Intangible Assets

   $ 11,923       $ (2,716   $ 9,207       $ 12,509       $ (2,026   $ 10,483   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 
LONG-TERM DEBT (Tables)
Outstanding Debt

The Company had the following outstanding debt:

 

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

Insurance premium financing

   $ 504       $ 211   

Vehicle financing

     953         1,147   

Acquisition Credit Facility, due January 2017

     —           10,750   

Revolving Credit Facility, due January 2017

     84,700         33,000   

Note Payable - Greenlawn acquisition

     1,214         1,321   

Note Payable - Nelms acquisition (net of discount)

     363         623   

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

     3,062         1,490   

10.25% senior notes, due 2017

     150,000         150,000   
  

 

 

    

 

 

 

Total

     240,796         198,542   

Less current portion

     1,770         1,487   

Less unamortized bond discount

     2,908         3,220   
  

 

 

    

 

 

 

Long-term portion

   $ 236,118       $ 193,835   
  

 

 

    

 

 

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

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

 

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

Deferred cemetery revenue

   $ 333,439      $ 306,488   

Deferred merchandise trust revenue

     59,597        50,419   

Deferred merchandise trust unrealized gains (losses)

     4,715        (7,937

Deferred pre-acquisition margin

     133,141        135,043   

Deferred cost of goods sold

     (45,951     (42,335
  

 

 

   

 

 

 

Deferred cemetery revenues, net

   $ 484,941      $ 441,678   
  

 

 

   

 

 

 

Deferred selling and obtaining costs

   $ 73,904      $ 68,542   
COMMITMENTS AND CONTINGENCIES (Tables)
Operating Leases Future Payments

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

 

     (in thousands)  

2013

   $ 2,074   

2014

     1,363   

2015

     869   

2016

     801   

2017

     754   

Thereafter

     1,892   
  

 

 

 

Total

   $ 7,753   
  

 

 

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

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

 

     Three months ended
September 30,
     Nine months ended
September 30,
 
     2012      2011      2012      2011  
     (in thousands)      (in thousands)  

Unit appreciation rights

   $ 133       $ 119       $ 381       $ 358   

Restricted phantom units

     83         76         244         218   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total unit-based compensation expense

   $ 216       $ 195       $ 625       $ 576   
  

 

 

    

 

 

    

 

 

    

 

 

 
ACQUISITIONS (Tables)

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

 

     Preliminary
Assessment
 
     (in thousands)  

Net Assets Acquired:

  

Accounts receivable

   $ 66   

Cemetery property

     3,001   

Property and equipment

     102   
  

 

 

 

Total net assets acquired

     3,169   
  

 

 

 

Assets and Liabilities divested:

  

Note payable to Kingwood

     519   

Intangible asset representing underlying contract value

     (2,236
  

 

 

 

Fair value of net assets acquired and divested

     1,452   
  

 

 

 

Consideration paid

     1,652   
  

 

 

 

Goodwill from purchase

   $ 200   
  

 

 

 

The table below reflects the Company’s final assessment of the fair value of net assets acquired, the purchase price and the resulting goodwill from the purchase and displays the adjustments made to the revised values reported at December 31, 2011. The Company obtained additional information in the third quarter of 2012 and has retrospectively adjusted these values as noted below.

 

     Revised
Assessment
     Adjustments     Final
Assessment
 
     (in thousands)  

Assets:

       

Accounts receivable

   $ 4,575       $ 25      $ 4,600   

Cemetery property

     4,666         —          4,666   

Perpetual care trusts, restricted, at fair value

     981         —          981   

Property and equipment

     4,124         —          4,124   
  

 

 

    

 

 

   

 

 

 

Total assets

     14,346         25        14,371   
  

 

 

    

 

 

   

 

 

 

Liabilities:

       

Deferred margin

     5,217         (200     5,017   

Merchandise liabilities

     4,799         (167     4,632   

Deferred tax liability

     766         —          766   

Perpetual care trust corpus

     981         —          981   
  

 

 

    

 

 

   

 

 

 

Total liabilities

     11,763         (367     11,396   
  

 

 

    

 

 

   

 

 

 

Fair value of net assets acquired

     2,583         392        2,975   
  

 

 

    

 

 

   

 

 

 

Consideration paid

     4,600         —          4,600   
  

 

 

    

 

 

   

 

 

 

Goodwill from purchase

   $ 2,017       $ (392   $ 1,625   
  

 

 

    

 

 

   

 

 

 

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

 

     Final
Assessment
 

Assets:

  

Accounts receivable

   $ 211   

Cemetery property

     4,833   

Merchandise trusts, restricted, at fair value

     4,069   

Perpetual care trusts, restricted, at fair value

     2,438   

Property and equipment

     2,303   

Other assets

     260   
  

 

 

 

Total assets

     14,114   
  

 

 

 

Liabilities:

  

Deferred margin

     2,457   

Merchandise liabilities

     2,719   

Perpetual care trust corpus

     2,438   

Deferred tax liability

     1,287   
  

 

 

 

Total liabilities

     8,901   
  

 

 

 

Fair value of net assets acquired

     5,213   
  

 

 

 

Consideration paid

     5,700   

Fair value of debt assumed for non-compete agreements

     280   
  

 

 

 

Total consideration paid

     5,980   
  

 

 

 

Goodwill from purchase

   $ 767   
  

 

 

 

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

 

     Preliminary
Assessment
 
     (in thousands)  

Assets:

  

Property and equipment

   $ 1,296   

Non-compete agreements

     170   
  

 

 

 

Total assets

     1,466   
  

 

 

 

Total liabilities

     —     
  

 

 

 

Fair value of net assets acquired

     1,466   
  

 

 

 

Consideration paid - cash

     2,300   

Fair value of debt assumed for non-compete agreements

     274   
  

 

 

 

Total consideration paid

     2,574   
  

 

 

 

Goodwill from purchase

   $ 1,108   
  

 

 

 

 

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

 

     Preliminary
Assessment
 
     (in thousands)  

Assets:

  

Accounts receivable

   $ 1,005   

Cemetery property

     6,100   

Property and equipment

     5,864   

Merchandise trusts, restricted , at fair value

     11,884   

Perpetual care trusts, restricted, at fair value

     2,232   

Other assets

     122   

Non-compete agreements

     1,373   
  

 

 

 

Total assets

     28,580   
  

 

 

 

Liabilities:

  

Deferred margin

     3,746   

Merchandise liabilities

     3,458   

Perpetual care trust corpus

     2,232   
  

 

 

 

Total liabilities

     9,436   
  

 

 

 

Fair value of net assets acquired

     19,144   
  

 

 

 

Consideration paid - cash

     20,000   

Consideration paid - units

     3,500   

Fair value of debt assumed for non-compete agreements

     1,230   
  

 

 

 

Total consideration paid

     24,730   
  

 

 

 

Goodwill from purchase

   $ 5,586   
  

 

 

 

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

 

     Preliminary
Assessment
 
     (in thousands)  

Assets:

  

Accounts receivable

   $ 72   

Cemetery property

     842   

Property and equipment

     518   

Perpetual care trusts, restricted, at fair value

     2,780   

Non-compete agreements

     12   
  

 

 

 

Total assets

     4,224   
  

 

 

 

Liabilities:

  

Perpetual care trust corpus

     2,780   

Other liabilities

     24   

Deferred tax liability

     374   
  

 

 

 

Total liabilities

     3,178   
  

 

 

 

Fair value of net assets acquired

     1,046   
  

 

 

 

Consideration paid

     924   
  

 

 

 

Gain on bargain purchase

   $ 122   
  

 

 

 

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

 

     Preliminary
Assessment
 
     (in thousands)  

Assets:

  

Property and equipment

   $ 48   

Merchandise trusts, restricted, at fair value

     105   

Underlying lease value

     64   

Non-compete agreements

     40   
  

 

 

 

Total assets

     257   
  

 

 

 

Liabilities:

  

Merchandise liabilities

     105   
  

 

 

 

Total liabilities

     105   
  

 

 

 

Fair value of net assets acquired

     152   
  

 

 

 

Consideration paid - cash

     850   

Consideration paid - units

     350   

Fair value of debt assumed for non-compete agreements

     544   
  

 

 

 

Total consideration paid

     1,744   
  

 

 

 

Goodwill from purchase

   $ 1,592   
  

 

 

 
SEGMENT INFORMATION (Tables)
Segment Information

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

 

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

 

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

Revenues

                  

Sales

   $ 24,723       $ 8,087       $ 9,420       $ —         $ —        $ (8,107   $ 34,123   

Service and other

     9,084         6,108         8,045         —           —          (3,989     19,248   

Funeral home

     —           —           —           9,603         —          (777     8,826   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

     33,807         14,195         17,465         9,603         —          (12,873     62,197   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Costs and expenses

                  

Cost of sales

     5,208         2,156         1,628         —           52        (1,398     7,646   

Cemetery

     6,635         3,574         4,042         —           1        —          14,252   

Selling

     7,356         2,762         2,875         —           163        (1,866     11,290   

General and administrative

     3,694         1,486         1,828         —           7        —          7,015   

Corporate overhead

     —           —           —           —           6,546        —          6,546   

Depreciation and amortization

     513         220         551         529         386        —          2,199   

Funeral home

     —           —           —           7,161         —          (65     7,096   

Acquisition related costs

     —           —           —           —           1,085        —          1,085   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total costs and expenses

     23,406         10,198         10,924         7,690         8,240        (3,329     57,129   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating profit

   $ 10,401       $ 3,997       $ 6,541       $ 1,913       $ (8,240   $ (9,544   $ 5,068   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 512,446       $ 297,736       $ 393,685       $ 104,914       $ 21,156      $ —        $ 1,329,937   

Amortization of cemetery property

   $ 1,396       $ 526       $ 275       $ —         $ —        $ 108      $ 2,305   

Long lived asset additions

   $ 6,641       $ 1,133       $ 684       $ 8,023       $ 64      $ —        $ 16,545   

Goodwill

   $ 6,194       $ —         $ 11,948       $ 22,251       $ —        $ —        $ 40,393   

As of and for the nine months ended September 30, 2012:

 

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

Revenues

                  

Sales

   $ 69,415       $ 26,090       $ 29,743       $ —         $ —        $ (25,988   $ 99,260   

Service and other

     27,867         19,820         22,940         —           —          (12,213     58,414   

Funeral home

     —           —           —           27,065         —          (1,447     25,618   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

     97,282         45,910         52,683         27,065         —          (39,648     183,292   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Costs and expenses

                  

Cost of sales

     14,471         5,857         5,031         —           104        (4,161     21,302   

Cemetery

     19,085         10,453         12,280         —           1        —          41,819   

Selling

     22,072         9,220         9,482         —           995        (5,569     36,200   

General and administrative

     11,130         4,499         5,751         —           23        —          21,403   

Corporate overhead

     —           —           —           —           20,905        —          20,905   

Depreciation and amortization

     1,559         660         1,666         1,667         1,207        —          6,759   

Funeral home

     —           —           —           20,648         —          (181     20,467   

Acquisition related costs

     —           —           —           —           2,198        —          2,198   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total costs and expenses

     68,317         30,689         34,210         22,315         25,433        (9,911     171,053   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating profit

   $ 28,965       $ 15,221       $ 18,473       $ 4,750       $ (25,433   $ (29,737   $ 12,239   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 512,446       $ 297,736       $ 393,685       $ 104,914       $ 21,156      $ —        $ 1,329,937   

Amortization of cemetery property

   $ 3,397       $ 1,939       $ 844       $ —         $ —        $ 105      $ 6,285   

Long lived asset additions

   $ 11,435       $ 2,490       $ 3,889       $ 8,361       $ 670      $ —        $ 26,845   

Goodwill

   $ 6,194       $ —         $ 11,948       $ 22,251       $ —        $ —        $ 40,393   

 

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

 

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

Revenues

                  

Sales

   $ 19,480       $ 7,744       $ 11,939       $ —         $ —        $ (5,000   $ 34,163   

Service and other

     7,354         6,007         7,136         —           —          (1,834     18,663   

Funeral home

     —           —           —           7,705         —          (206     7,499   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

     26,834         13,751         19,075         7,705         —          (7,040     60,325   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Costs and expenses

                  

Cost of sales

     4,056         1,965         2,127         —           —          (988     7,160   

Cemetery

     6,009         3,770         5,533         —           —          —          15,312   

Selling

     6,686         2,693         3,621         —           130        (938     12,192   

General and administrative

     3,279         1,535         2,297         —           —          —          7,111   

Corporate overhead

     —           —           —           —           5,628        —          5,628   

Depreciation and amortization

     425         219         444         391         407        —          1,886   

Funeral home

     —           —           —           5,868         —          —          5,868   

Acquisition related costs

     —           —           —           —           1,189        —          1,189   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total costs and expenses

     20,455         10,182         14,022         6,259         7,354        (1,926     56,346   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating profit

   $ 6,379       $ 3,569       $ 5,053       $ 1,446       $ (7,354   $ (5,114   $ 3,979   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 438,032       $ 275,081       $ 365,985       $ 54,895       $ 35,865      $ —        $ 1,169,858   

Amortization of cemetery property

   $ 839       $ 442       $ 441       $ —         $ —        $ (268   $ 1,454   

Long lived asset additions

   $ 7,013       $ 436       $ 1,841       $ 5,133       $ 236      $ —        $ 14,659   

Goodwill

   $ 2,700       $ —         $ 11,949       $ 5,897       $ —        $ —        $ 20,546   

As of and for the nine months ended September 30, 2011:

 

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

Revenues

                  

Sales

   $ 59,448       $ 24,277       $ 34,960       $ —         $ 5      $ (25,203   $ 93,487   

Service and other

     23,533         17,586         22,207         —           —          (9,344     53,982   

Funeral home

     —           —           —           22,749         —          (555     22,194   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

     82,981         41,863         57,167         22,749         5        (35,102     169,663   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Costs and expenses

                  

Cost of sales

     12,128         5,281         5,743         —           —          (3,783     19,369   

Cemetery

     17,036         10,739         15,085         —           —          —          42,860   

Selling

     20,292         8,464         10,336         —           807        (5,976     33,923   

General and administrative

     9,547         4,555         6,469         —           (2     —          20,569   

Corporate overhead

     —           —           —           —           17,572        —          17,572   

Depreciation and amortization

     1,183         663         1,686         1,118         1,724        —          6,374   

Funeral home

     —           —           —           16,875         —          —          16,875   

Acquisition related costs

     —           —           —           —           3,147        —          3,147   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total costs and expenses

     60,186         29,702         39,319         17,993         23,248        (9,759     160,689   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating profit

   $ 22,795       $ 12,161       $ 17,848       $ 4,756       $ (23,243   $ (25,343   $ 8,974   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 438,032       $ 275,081       $ 365,985       $ 54,895       $ 35,865      $ —        $ 1,169,858   

Amortization of cemetery property

   $ 2,592       $ 1,582       $ 835       $ —         $ —        $ (597   $ 4,412   

Long lived asset additions

   $ 10,900       $ 1,239       $ 5,062       $ 7,269       $ 540      $ —        $ 25,010   

Goodwill

   $ 2,700       $ —         $ 11,949       $ 5,897       $ —        $ —        $ 20,546   
FAIR VALUE MEASUREMENTS (Tables)
Assets and Liabilities Measured at Fair Value

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

As of September 30, 2012

Merchandise Trust

 

Description

   Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 48,722       $ —         $ 48,722   

Fixed maturities:

        

U.S. government and federal agency

     —           —           —     

U.S. state and local government agency

     —           23         23   

Corporate debt securities

     —           8,741         8,741   

Other debt securities

     —           4,313         4,313   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     —           13,077         13,077   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     100,085         —           100,085   

Mutual funds - equity securities - real estate sector

     43,432         —           43,432   

Mutual funds - equity securities - energy sector

     5,767         —           5,767   

Mutual funds - equity securities - MLP’s

     28,476         —           28,476   

Mutual funds - equity securities - other

     53,697         —           53,697   

Equity securities

        

Preferred REIT’s

     1,638         —           1,638   

Master limited partnerships

     41,378         —           41,378   

Global equity securities

     22,483         —           22,483   

Other invested assets

     —           6,587         6,587   
  

 

 

    

 

 

    

 

 

 

Total

   $ 345,678       $ 19,664       $ 365,342   
  

 

 

    

 

 

    

 

 

 

Perpetual Care Trust

 

Description

   Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 20,912       $ —         $ 20,912   

Fixed maturities:

        

U.S. government and federal agency

     513         —           513   

U.S. state and local government agency

     —           147         147   

Corporate debt securities

     —           23,898         23,898   

Other debt securities

     —           371         371   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     513         24,416         24,929   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     107,933         —           107,933   

Mutual funds - equity securities - real estate sector

     39,083         —           39,083   

Mutual funds - equity securities - energy sector

     12,911         —           12,911   

Mutual funds - equity securities - MLP’s

     36,583         —           36,583   

Mutual funds - equity securities - other

     9,149         —           9,149   

Equity securities

        

Preferred REIT’s

     953         —           953   

Master limited partnerships

     29,453         —           29,453   

Global equity securities

     745         —           745   

Other invested assets

     —           —           —     
  

 

 

    

 

 

    

 

 

 

Total

   $ 258,235       $ 24,416       $ 282,651   
  

 

 

    

 

 

    

 

 

 

 

As of December 31, 2011

Merchandise Trust

 

Description

   Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 38,312       $ —         $ 38,312   

Fixed maturities:

        

U.S. government and federal agency

     —           —           —     

U.S. state and local government agency

     —           23         23   

Corporate debt securities

     —           9,765         9,765   

Other debt securities

     —           1,100         1,100   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     —           10,888         10,888   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     67,421         —           67,421   

Mutual funds - equity securities - real estate sector

     22,847         —           22,847   

Mutual funds - equity securities - energy sector

     28,057         —           28,057   

Mutual funds - equity securities - MLP’s

     20,308         —           20,308   

Mutual funds - equity securities - other

     70,076         —           70,076   

Equity securities

        

Preferred REIT’s

     9,001         —           9,001   

Master limited partnerships

     41,469         —           41,469   

Global equity securities

     21,882         —           21,882   

Other invested assets

     —           7,360         7,360   
  

 

 

    

 

 

    

 

 

 

Total

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

 

 

    

 

 

    

 

 

 

Perpetual Care Trust

 

Description

   Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 22,607       $ —         $ 22,607   

Fixed maturities:

        

U.S. government and federal agency

     513         —           513   

U.S. state and local government agency

     —           147         147   

Corporate debt securities

     —           22,154         22,154   

Other debt securities

     —           371         371   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     513         22,672         23,185   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     60,806         —           60,806   

Mutual funds - equity securities - real estate sector

     24,580         —           24,580   

Mutual funds - equity securities - energy sector

     20,069         —           20,069   

Mutual funds - equity securities - MLP’s

     13,515         —           13,515   

Mutual funds - equity securities - other

     41,334         —           41,334   

Equity securities

        

Preferred REIT’s

     19,720         —           19,720   

Master limited partnerships

     27,998         —           27,998   

Global equity securities

     695         —           695   

Other invested assets

     —           170         170   
  

 

 

    

 

 

    

 

 

 

Total

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

 

 

    

 

 

    

 

 

 
Nature of Operations Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail)
Sep. 30, 2012
US and Puerto Rico
Cemetery
Property
State
Sep. 30, 2012
US and Puerto Rico
Funeral Home
State
Property
Sep. 30, 2012
Wholly Owned Properties
US and Puerto Rico
Cemetery
Property
Jun. 30, 2012
Managed Properties
Cemetery property
Property
Jun. 30, 2012
Managed Properties
Consolidated Properties
Cemetery property
Property
Sep. 30, 2012
Managed Properties
Unconsolidated Properties
Cemetery property
Property
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
 
 
 
 
 
Number of operating locations
276 
85 
258 
18 
16 
Number of states
26 
18 
 
 
 
 
Long Term Accounts Receivable Net (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Customer receivables
$ 156,224 
$ 151,517 
Unearned finance income
(18,017)
(16,679)
Allowance for contract cancellations
(20,467)
(17,582)
Accounts Receivable, Net, Total
117,740 
117,256 
Less: current portion, net of allowance
48,109 
48,837 
Long-term portion, net of allowance
$ 69,631 
$ 68,419 
Activity in Allowance for Contract Cancellations (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Dec. 31, 2011
Sep. 30, 2012
Contract Cancellations
Sep. 30, 2011
Contract Cancellations
Valuation and Qualifying Accounts Disclosure [Line Items]
 
 
 
 
Balance - Beginning of period
$ 20,467 
$ 17,582 
$ 17,582 
$ 15,832 
Provision for cancellations
 
 
14,858 
13,799 
Charge-offs - net
 
 
(11,973)
(10,315)
Balance - End of period
$ 20,467 
$ 17,582 
$ 20,467 
$ 19,316 
Cemetery Property (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
$ 309,340 
$ 298,938 
Developed land
 
 
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
71,128 
64,266 
Undeveloped Land
 
 
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
168,724 
164,723 
Mausoleum Crypts and Lawn Crypts
 
 
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
$ 69,488 
$ 69,949 
Major Classes of Property and Equipment (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Property, Plant and Equipment [Line Items]
 
 
Building and improvements
$ 82,565 
$ 75,076 
Furniture and equipment
40,180 
36,863 
Property, Plant and Equipment, Gross, Total
122,745 
111,939 
Less: accumulated depreciation
(43,178)
(38,162)
Property and equipment - net
$ 79,567 
$ 73,777 
Property and Equipment - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Property, Plant, and Equipment Disclosure [Line Items]
 
 
 
 
Depreciation expense
$ 1.7 
$ 1.4 
$ 5.2 
$ 4.3 
Merchandise Trusts - Additional Information (Detail) (Variable Interest Entity, Primary Beneficiary, Merchandise Trusts, USD $)
9 Months Ended 9 Months Ended
Sep. 30, 2012
Dec. 31, 2011
Sep. 30, 2012
Other Than Temporarily Impaired Securities
Property
Sep. 30, 2011
Other Than Temporarily Impaired Securities
Property
Sep. 30, 2012
Termination of operating agreement
Sep. 30, 2012
West Virginia Trust Receivable
Dec. 31, 2011
West Virginia Trust Receivable
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
 
 
 
Trust assets, fair value
$ 372,775,000 
$ 344,515,000 
$ 800,000 
$ 100,000 
 
$ 7,433,000 
$ 6,894,000 
Net withdrawals from the trusts
100,000 
 
 
 
 
 
 
Purchases of securities available for sale included in trust investments
404,700,000 
 
 
 
 
 
 
Sales of securities available for sale included in trust investments
403,500,000 
 
 
 
 
 
 
Net distributions from trusts
 
 
 
 
5,800,000 
 
 
Contributions of assets
12,000,000 
 
 
 
 
 
 
Number of securities resulting impairment
 
 
 
 
 
Trust assets, cost
368,060,000 
352,452,000 
1,600,000 
200,000 
 
7,433,000 
6,894,000 
Other than temporary impairments loss
 
 
$ 800,000 
$ 100,000 
 
 
 
Cost and Market Value Associated with Assets Held in Merchandise Trusts (Detail) (Variable Interest Entity, Primary Beneficiary, Merchandise Trusts, USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
$ 368,060 
$ 352,452 
Gross Unrealized Gains
12,111 
7,426 
Gross Unrealized Losses
(7,396)
(15,363)
Fair Value
372,775 
344,515 
Short-term investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
48,722 
38,312 
Fair Value
48,722 
38,312 
Fixed maturities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
13,016 
11,660 
Gross Unrealized Gains
195 
19 
Gross Unrealized Losses
(134)
(791)
Fair Value
13,077 
10,888 
Fixed maturities |
U.S. State and local government agency
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
23 
23 
Fair Value
23 
23 
Fixed maturities |
Corporate debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
8,673 
10,537 
Gross Unrealized Gains
195 
19 
Gross Unrealized Losses
(127)
(791)
Fair Value
8,741 
9,765 
Fixed maturities |
Other debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
4,320 
1,100 
Gross Unrealized Losses
(7)
 
Fair Value
4,313 
1,100 
Mutual funds - debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
97,886 
68,291 
Gross Unrealized Gains
2,699 
1,711 
Gross Unrealized Losses
(500)
(2,581)
Fair Value
100,085 
67,421 
Mutual funds - equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
128,537 
148,209 
Gross Unrealized Gains
6,099 
1,939 
Gross Unrealized Losses
(3,264)
(8,860)
Fair Value
131,372 
141,288 
Equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
65,897 
71,760 
Gross Unrealized Gains
3,100 
3,723 
Gross Unrealized Losses
(3,498)
(3,131)
Fair Value
65,499 
72,352 
Other invested assets
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
6,569 
7,326 
Gross Unrealized Gains
18 
34 
Fair Value
6,587 
7,360 
Total managed investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
360,627 
345,558 
Gross Unrealized Gains
12,111 
7,426 
Gross Unrealized Losses
(7,396)
(15,363)
Fair Value
365,342 
337,621 
West Virginia Trust Receivable
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
7,433 
6,894 
Fair Value
$ 7,433 
$ 6,894 
Contractual Maturities of Debt Securities Held in Merchandise Trusts (Detail) (Variable Interest Entity, Primary Beneficiary, Merchandise Trusts, Fixed maturities, USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
$ 4,336 
1 year through 5 years
5,866 
6 years through 10 years
2,742 
More than 10 years
133 
U.S. State and local government agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
23 
Corporate debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
1 year through 5 years
5,866 
6 years through 10 years
2,742 
More than 10 years
133 
Other debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
$ 4,313 
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
Sep. 30, 2012
Dec. 31, 2011
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
$ 63,063 
$ 76,678 
Less than 12 months Unrealized Losses
3,673 
4,371 
12 Months or more Fair Value
40,959 
101,160 
12 Months or more Unrealized Losses
3,723 
10,992 
Total Fair Value
104,022 
177,838 
Total Unrealized Losses
7,396 
15,363 
Fixed maturities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
5,378 
4,007 
Less than 12 months Unrealized Losses
36 
351 
12 Months or more Fair Value
1,716 
4,459 
12 Months or more Unrealized Losses
98 
440 
Total Fair Value
7,094 
8,466 
Total Unrealized Losses
134 
791 
Fixed maturities |
Corporate debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
1,065 
4,007 
Less than 12 months Unrealized Losses
29 
351 
12 Months or more Fair Value
1,716 
4,459 
12 Months or more Unrealized Losses
98 
440 
Total Fair Value
2,781 
8,466 
Total Unrealized Losses
127 
791 
Fixed maturities |
Other debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
4,313 
 
Less than 12 months Unrealized Losses
 
Total Fair Value
4,313 
 
Total Unrealized Losses
 
Mutual funds - debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
13,885 
19,691 
Less than 12 months Unrealized Losses
128 
1,109 
12 Months or more Fair Value
4,255 
31,916 
12 Months or more Unrealized Losses
372 
1,472 
Total Fair Value
18,140 
51,607 
Total Unrealized Losses
500 
2,581 
Mutual funds - equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
23,238 
32,631 
Less than 12 months Unrealized Losses
2,304 
970 
12 Months or more Fair Value
25,658 
59,010 
12 Months or more Unrealized Losses
960 
7,890 
Total Fair Value
48,896 
91,641 
Total Unrealized Losses
3,264 
8,860 
Equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
20,562 
20,349 
Less than 12 months Unrealized Losses
1,205 
1,941 
12 Months or more Fair Value
9,330 
5,775 
12 Months or more Unrealized Losses
2,293 
1,190 
Total Fair Value
29,892 
26,124 
Total Unrealized Losses
$ 3,498 
$ 3,131 
Reconciliation of Merchandise Trust Activities (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Dec. 31, 2011
Sep. 30, 2012
Variable Interest Entity, Primary Beneficiary
Merchandise Trusts
Schedule of Available-for-sale Securities [Line Items]
 
 
 
Fair Value
$ 372,775 
$ 344,515 
$ 344,515 
Contributions
 
 
46,695 
Distributions
 
 
(46,816)
Interest/ Dividends
 
 
12,240 
Capital Gain Distributions
 
 
110 
Realized Gain/ Loss
 
 
8,750 
Taxes
 
 
(3,511)
Fees
 
 
(1,860)
Unrealized Change in Fair Value
 
 
12,652 
Fair Value
$ 372,775 
$ 344,515 
$ 372,775 
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
Sep. 30, 2012
Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
$ 267,109 
$ 252,861 
Gross Unrealized Gains
19,131 
14,377 
Gross Unrealized Losses
(3,589)
(12,559)
Fair Value
282,651 
254,679 
Short-term investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
20,912 
22,607 
Fair Value
20,912 
22,607 
Fixed maturities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
24,286 
24,204 
Gross Unrealized Gains
970 
415 
Gross Unrealized Losses
(327)
(1,434)
Fair Value
24,929 
23,185 
Fixed maturities |
U.S. Government and federal agency
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
408 
408 
Gross Unrealized Gains
105 
105 
Fair Value
513 
513 
Fixed maturities |
U.S. State and local government agency
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
66 
66 
Gross Unrealized Gains
81 
81 
Fair Value
147 
147 
Fixed maturities |
Corporate debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
23,441 
23,359 
Gross Unrealized Gains
784 
229 
Gross Unrealized Losses
(327)
(1,434)
Fair Value
23,898 
22,154 
Fixed maturities |
Other debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
371 
371 
Fair Value
371 
371 
Mutual funds - debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
104,648 
61,700 
Gross Unrealized Gains
3,822 
185 
Gross Unrealized Losses
(537)
(1,079)
Fair Value
107,933 
60,806 
Mutual funds - equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
93,917 
104,824 
Gross Unrealized Gains
6,138 
4,295 
Gross Unrealized Losses
(2,329)
(9,621)
Fair Value
97,726 
99,498 
Equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
23,346 
39,199 
Gross Unrealized Gains
8,201 
9,326 
Gross Unrealized Losses
(396)
(112)
Fair Value
31,151 
48,413 
Other invested assets
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
 
327 
Gross Unrealized Gains
 
156 
Gross Unrealized Losses
 
(313)
Fair Value
 
$ 170 
Contractual Maturities of Debt Securities Held in Perpetual Care Trusts (Detail) (Variable Interest Entity, Primary Beneficiary, Perpetual care trusts, Fixed maturities, USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
$ 697 
1 year through 5 years
16,511 
6 years through 10 years
7,295 
More than 10 years
426 
U.S. Government and federal agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
129 
1 year through 5 years
384 
U.S. State and local government agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
147 
Corporate debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
50 
1 year through 5 years
16,127 
6 years through 10 years
7,295 
More than 10 years
426 
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
Sep. 30, 2012
Dec. 31, 2011
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
$ 11,438 
$ 70,554 
Less than 12 months Unrealized Losses
706 
4,941 
12 Months or more Fair Value
13,334 
54,913 
12 Months or more Unrealized Losses
2,883 
7,618 
Total Fair Value
24,772 
125,467 
Total Unrealized Losses
3,589 
12,559 
Fixed maturities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
3,074 
7,967 
Less than 12 months Unrealized Losses
82 
727 
12 Months or more Fair Value
4,397 
8,471 
12 Months or more Unrealized Losses
245 
707 
Total Fair Value
7,471 
16,438 
Total Unrealized Losses
327 
1,434 
Fixed maturities |
Corporate debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
3,074 
7,967 
Less than 12 months Unrealized Losses
82 
727 
12 Months or more Fair Value
4,397 
8,471 
12 Months or more Unrealized Losses
245 
707 
Total Fair Value
7,471 
16,438 
Total Unrealized Losses
327 
1,434 
Mutual funds - debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
5,229 
37,956 
Less than 12 months Unrealized Losses
228 
772 
12 Months or more Fair Value
1,033 
1,675 
12 Months or more Unrealized Losses
309 
307 
Total Fair Value
6,262 
39,631 
Total Unrealized Losses
537 
1,079 
Mutual funds - equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
 
21,483 
Less than 12 months Unrealized Losses
 
3,023 
12 Months or more Fair Value
7,904 
44,416 
12 Months or more Unrealized Losses
2,329 
6,598 
Total Fair Value
7,904 
65,899 
Total Unrealized Losses
2,329 
9,621 
Equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
3,135 
2,978 
Less than 12 months Unrealized Losses
396 
106 
12 Months or more Fair Value
 
351 
12 Months or more Unrealized Losses
 
Total Fair Value
3,135 
3,329 
Total Unrealized Losses
396 
112 
Other invested assets
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
 
170 
Less than 12 months Unrealized Losses
 
313 
Total Fair Value
 
170 
Total Unrealized Losses
 
$ 313 
Reconciliation of Perpetual Care Trust Activities (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Dec. 31, 2011
Sep. 30, 2012
Variable Interest Entity, Primary Beneficiary
Perpetual care trusts
Schedule of Available-for-sale Securities [Line Items]
 
 
 
Fair Value
$ 282,651 
$ 254,679 
$ 254,679 
Contributions
 
 
13,715 
Distributions
 
 
(10,954)
Interest/ Dividends
 
 
12,310 
Capital Gain Distributions
 
 
13 
Realized Gain/ Loss
 
 
1,213 
Taxes
 
 
(681)
Fees
 
 
(1,368)
Unrealized Change in Fair Value
 
 
13,724 
Fair Value
$ 282,651 
$ 254,679 
$ 282,651 
Perpetual Care Trusts - Additional Information (Detail) (Variable Interest Entity, Primary Beneficiary, Perpetual care trusts, USD $)
In Millions, unless otherwise specified
9 Months Ended 3 Months Ended 6 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Other Than Temporarily Impaired Securities
Investment
Sep. 30, 2011
Other Than Temporarily Impaired Securities
Investment
Sep. 30, 2012
Nelms
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
Net distributions from trusts
$ 2.8 
 
 
$ 5.0 
Purchases of securities available for sale included in trust investments
250.6 
 
 
 
Sales of securities available for sale included in trust investments
247.3 
 
 
 
Number of securities resulting impairment
 
 
Trust assets, cost
 
$ 0.1 
$ 0.1 
 
Goodwill by Reportable Segment (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 9 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Cemetery Operations South East
Sep. 30, 2011
Cemetery Operations South East
Sep. 30, 2012
Cemetery Operations West
Dec. 31, 2011
Cemetery Operations West
Sep. 30, 2011
Cemetery Operations West
Sep. 30, 2012
Funeral Home
Sep. 30, 2011
Funeral Home
Goodwill [Line Items]
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2011
$ 31,907 
$ 20,546 
$ 5,662 
$ 2,700 
$ 11,948 
$ 11,948 
$ 11,949 
$ 14,297 
$ 5,897 
Goodwill resulting from acquisitions during the nine months ended September 30, 2012
8,486 
 
532 
 
 
 
 
7,954 
 
Balance as of September 30, 2012
$ 40,393 
$ 20,546 
$ 6,194 
$ 2,700 
$ 11,948 
$ 11,948 
$ 11,949 
$ 22,251 
$ 5,897 
Goodwill and Intangible Assets - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended 3 Months Ended
Jun. 30, 2012
Fourth Quarter 2011
Jun. 30, 2012
Fourth Quarter 2011
Merchandise Trusts
Sep. 30, 2012
Third Quarter 2011 Acquisition
Goodwill [Line Items]
 
 
 
Legal settlement receivable
$ 3.8 
 
 
Other goodwill adjustments as a result of increase in merchandise trust asset and account receivable
 
0.3 
 
Decrease to goodwill as purchase price adjustment for acquisitions
$ (4.1)
 
$ (0.4)
Major Classes of Intangible Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
$ 11,923 
$ 12,509 
Accumulated Amortization
(2,716)
(2,026)
Net Intangible Asset
9,207 
10,483 
Underlying contract value
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
6,239 
8,484 
Accumulated Amortization
(503)
(546)
Net Intangible Asset
5,736 
7,938 
Noncompete Agreements
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
5,415 
3,820 
Accumulated Amortization
(2,136)
(1,413)
Net Intangible Asset
3,279 
2,407 
Other Intangible Assets
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
269 
205 
Accumulated Amortization
(77)
(67)
Net Intangible Asset
$ 192 
$ 138 
Outstanding Debt (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Debt Instrument [Line Items]
 
 
Long-Term Debt
$ 240,796 
$ 198,542 
Less current portion
1,770 
1,487 
Less unamortized bond discount
2,908 
3,220 
Long-term portion
236,118 
193,835 
Insurance premium financing
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
504 
211 
Vehicle financing
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
953 
1,147 
Acquisition Credit Facility, due January 2017
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
 
10,750 
Revolving Credit Facility, due January 2017
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
84,700 
33,000 
Notes Payable, Other Payables |
Greenlawn
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
1,214 
1,321 
Notes Payable, Other Payables |
Nelms
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
363 
623 
Notes Payable, Other Payables |
acquisition non-competes
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
3,062 
1,490 
10.25% Senior Notes, due 2017
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
$ 150,000 
$ 150,000 
Outstanding Debt (Parenthetical) (Detail)
9 Months Ended 12 Months Ended
Sep. 30, 2012
Dec. 31, 2011
Acquisition Credit Facility, due January 2017
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt, maturity date
2017-01 
2017-01 
Revolving Credit Facility, due January 2017
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt, maturity date
2017-01 
2017-01 
10.25% Senior Notes, due 2017
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt, interest rate
10.25% 
10.25% 
Long-Term Debt, maturity date, year
2017 
2017 
Long Term Debt - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended 1 Months Ended
Sep. 30, 2012
Line of Credit
Third Amended And Restated Credit Agreement
Minimum
Sep. 30, 2012
Line of Credit
Third Amended And Restated Credit Agreement
Maximum
Sep. 30, 2012
Line of Credit
Third Amended And Restated Credit Agreement
Base Rate
Sep. 30, 2012
10.25% Senior Notes, due 2017
Dec. 31, 2011
10.25% Senior Notes, due 2017
Jan. 31, 2012
Revolving Credit Facility, due January 2017
Third Amended And Restated Credit Agreement
Jan. 19, 2012
Revolving Credit Facility, due January 2017
Third Amended And Restated Credit Agreement
Debt Disclosure [Line Items]
 
 
 
 
 
 
 
Long-Term Debt, principal amount
 
 
 
$ 150.0 
 
 
 
Long-Term Debt, interest rate
 
 
 
10.25% 
10.25% 
 
 
Long-Term Debt, maturity date
 
 
 
Dec. 01, 2017 
 
 
 
Long-Term Debt, original issue discount
 
 
 
4.0 
 
 
 
Debt premium percentage
 
 
 
1.54% 
 
 
 
Credit facility, borrowing capacity
 
 
 
 
 
 
$ 130.0 
Credit facility, maturity date
 
 
 
 
 
Jan. 19, 2017 
 
Credit facility, interest rate
3.70% 
4.20% 
 
 
 
 
 
Credit facility, interest rate margin on base rate
1.25% 
2.75% 
 
 
 
 
 
Credit facility, interest rate margin on Eurodollar rate
2.25% 
3.75% 
 
 
 
 
 
Credit facility, margin on Federal Funds Rate to calculate interest rate reference rate
 
 
0.50% 
 
 
 
 
Credit facility, margin on Eurodollar Rate to calculate interest rate reference rate
 
 
1.00% 
 
 
 
 
Credit facility, unused commitment fee rate
0.375% 
0.75% 
 
 
 
 
 
Income Taxes - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Internal Revenue Service (IRS)
 
Income Taxes [Line Items]
 
Net operating loss carryover
$ 152.8 
Net operating loss carryover, expiration date
2019 
State and Local Jurisdiction
 
Income Taxes [Line Items]
 
Net operating loss carryover
$ 184.1 
Deferred Cemetery Revenues Net (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Deferred Revenue Arrangement [Line Items]
 
 
Deferred merchandise trust unrealized gains (losses)
$ 4,715 
$ (7,937)
Deferred cost of goods sold
(45,951)
(42,335)
Deferred cemetery revenues, net
484,941 
441,678 
Deferred selling and obtaining costs
73,904 
68,542 
Pre Acquisition Margin
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred cemetery revenues, net
133,141 
135,043 
Cemetery
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred cemetery revenues, net
333,439 
306,488 
Merchandise Trusts
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred cemetery revenues, net
$ 59,597 
$ 50,419 
Commitments and Contingencies - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Leases Disclosure [Line Items]
 
 
 
 
Operating lease expense
$ 0.6 
$ 0.6 
$ 1.9 
$ 1.7 
Minimum
 
 
 
 
Leases Disclosure [Line Items]
 
 
 
 
Operating lease, initial term
 
 
1 year 
 
Maximum
 
 
 
 
Leases Disclosure [Line Items]
 
 
 
 
Operating lease, initial term
 
 
10 years 
 
Operating Leases Future Payments (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Schedule of Capital Lease Obligations [Line Items]
 
2013
$ 2,074 
2014
1,363 
2015
869 
2016
801 
2017
754 
Thereafter
1,892 
Total
$ 7,753 
Partners Capital - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
1 Months Ended 6 Months Ended 9 Months Ended 6 Months Ended
Jul. 31, 2012
Second Quarter 2012 Acquisition
Jun. 30, 2012
Second Quarter 2012 Acquisition
Sep. 30, 2012
Second Quarter 2012 Acquisition
Jun. 30, 2012
Second Quarter 2010 Acquisition
Jun. 30, 2011
Second Quarter 2010 Acquisition
Sep. 30, 2012
Unit appreciation rights
Limited Partners' Capital Account [Line Items]
 
 
 
 
 
 
Non-vested unit appreciation rights outstanding
 
 
 
 
 
$ 0.8 
Units issued in connection with acquisition
128,299 
13,720 
13,720 
9,853 
9,853 
 
Acquisitions - Additional Information (Detail) (USD $)
3 Months Ended 6 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 6 Months Ended 9 Months Ended 6 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 1 Months Ended
Sep. 30, 2012
Mar. 31, 2012
Sep. 30, 2011
Jun. 30, 2012
Sep. 30, 2012
Sep. 30, 2011
Jul. 31, 2012
Individual Counterparty
Person
Sep. 30, 2010
Joint Operating Agreement
Sep. 30, 2012
First Quarter 2012 Acquisition
Jan. 31, 2012
First Quarter 2012 Acquisition
Jul. 31, 2012
Second Quarter 2012 Acquisition
Jun. 30, 2012
Second Quarter 2012 Acquisition
Sep. 30, 2012
Second Quarter 2012 Acquisition
Sep. 30, 2012
Second Quarter 2012 Acquisition
Noncompete Agreements
Sep. 30, 2012
Second Quarter 2012 Acquisition
Cemetery property
Property
Jun. 30, 2012
Second Quarter 2012 Acquisition
Funeral Homes Property
Property
Sep. 30, 2012
Second Quarter 2012 Acquisition
Funeral Homes Property
Sep. 30, 2012
Third Quarter 2012 Acquisitions
Cemetery property
Jul. 31, 2012
Third Quarter 2012 Acquisitions
Cemetery property
Property
Sep. 30, 2012
Third Quarter 2012 Acquisitions
Cemetery property
Noncompete Agreements
Jul. 31, 2012
Third Quarter 2012 Acquisitions
Funeral Homes Property
Property
Jul. 2, 2012
Third Quarter 2012 Acquisitions
Funeral Homes Property
Property
Sep. 30, 2012
Third Quarter 2012 Acquisitions
Funeral Homes Property
Noncompete Agreements
Jul. 2, 2012
Third Quarter 2012 Acquisitions
Funeral Homes Property
Noncompete Agreements
Mar. 31, 2011
First Quarter 2011 Acquisition
Mar. 31, 2011
First Quarter 2011 Acquisition
Cemetery property
Property
Jun. 22, 2011
Second Quarter 2011 Acquisition
Jun. 30, 2012
Second Quarter 2011 Acquisition
Cemetery property
Property
Jun. 30, 2012
Second Quarter 2011 Acquisition
Funeral Homes Property
Property
Aug. 1, 2011
First, Second and Third Quarter 2011 Acquisitions
Noncompete Agreements
Sep. 30, 2012
Third Quarter 2011 Acquisition
Aug. 17, 2011
Third Quarter 2011 Acquisition
Aug. 17, 2011
Third Quarter 2011 Acquisition
Cemetery property
Property
Aug. 17, 2011
Third Quarter 2011 Acquisition
Funeral Homes Property
Property
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amended Operating Agreement, term
 
 
 
 
 
 
 
 
 
40 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consideration paid
$ 5,700,000 
 
 
 
$ 5,700,000 
 
 
 
$ 1,652,000 
$ 1,652,000 
 
 
$ 900,000 
 
 
 
$ 850,000 
$ 20,000,000 
 
 
 
 
$ 2,300,000 
 
$ 1,700,000 
 
$ 2,150,000 
 
 
$ 1,900,000 
$ 4,600,000 
$ 4,600,000 
 
 
Number of properties acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term of lease agreement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lease renewal term
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Units issued in connection with acquisition
 
 
 
 
 
 
 
 
 
 
128,299 
13,720 
13,720 
 
 
 
 
128,299 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consideration paid - units
 
 
 
 
 
 
 
 
 
 
 
 
350,000 
 
 
 
 
3,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Installment payment amount
 
 
 
 
 
 
 
 
 
 
 
 
 
600,000 
 
 
 
 
 
1,500,000 
 
 
300,000 
 
 
 
 
 
 
300,000 
 
 
 
 
Installment payment start date
 
 
 
 
 
 
 
 
 
 
 
 
 
Jan. 02, 2013 
 
 
 
 
 
Aug. 01, 2013 
 
 
Jul. 02, 2012 
Jul. 02, 2012 
 
 
 
 
 
 
 
 
 
 
Asset Purchase and Sale Agreement, number of individuals
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of installment payments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated proforma revenues
62,700,000 
 
62,500,000 
 
187,700,000 
176,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated proforma net income (loss)
1,100,000 
 
300,000 
 
1,900,000 
(5,100,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated proforma net income (loss) per limited partner unit (basic and diluted)
$ 0.06 
 
$ 0.01 
 
$ 0.10 
$ (0.27)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, revenue since acqusition
1,700,000 
 
 
 
2,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, operating profit since acquisition
400,000 
 
 
 
500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred gain
 
 
 
 
 
 
 
3,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contract termination, payment receivable
 
2,000,000 
 
2,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contract termination, gain recognized
 
 
 
 
$ 1,737,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preliminary Assessment of Fair Value of Net Assets Acquired Elimination of Debt and Other Assets and Purchase Price Recognition of Goodwill of First Quarter Twenty Twelve Acquisition (Detail) (USD $)
Sep. 30, 2012
Jan. 31, 2012
Business Acquisition [Line Items]
 
 
Total net assets acquired
$ 14,114,000 
 
Fair value of net assets acquired and divested
5,213,000 
 
Consideration paid
5,700,000 
 
Goodwill from purchase
767,000 
 
Accounts receivable
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of assets acquired
211,000 
 
Cemetery property
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of property and equipment acquired
4,833,000 
 
Property and equipment
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of property and equipment acquired
2,303,000 
 
First Quarter 2012 Acquisition
 
 
Business Acquisition [Line Items]
 
 
Total net assets acquired
3,169,000 
 
Intangible asset representing underlying contract value
(2,236,000)
 
Fair value of net assets acquired and divested
1,452,000 
 
Consideration paid
1,652,000 
1,652,000 
Goodwill from purchase
200,000 
 
First Quarter 2012 Acquisition |
Accounts receivable
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of assets acquired
66,000 
 
First Quarter 2012 Acquisition |
Cemetery property
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of property and equipment acquired
3,001,000 
 
First Quarter 2012 Acquisition |
Property and equipment
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of property and equipment acquired
102,000 
 
First Quarter 2012 Acquisition |
Notes Payable
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of liabilities assumed
$ 519,000 
 
Preliminary Assessment of Fair Value of Net Assets Acquired Elimination of Debt and Other Assets and Purchase Price Gain on Bargain Purchase of Bronswood Cemetery Second Quarter Twenty Twelve Acquisition (Detail) (USD $)
9 Months Ended
Sep. 30, 2012
Business Acquisition [Line Items]
 
Total assets
$ 14,114,000 
Total liabilities
8,901,000 
Fair value of net assets acquired
5,213,000 
Consideration paid
5,700,000 
Gain on bargain purchase
122,000 
Accounts receivable
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
211,000 
Cemetery property
 
Business Acquisition [Line Items]
 
Estimated fair value of property and equipment acquired
4,833,000 
Property and equipment
 
Business Acquisition [Line Items]
 
Estimated fair value of property and equipment acquired
2,303,000 
Perpetual care trusts, restricted, at fair value |
Perpetual care trusts
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
2,438,000 
Perpetual care trust corpus |
Perpetual care trusts
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
2,438,000 
Deferred tax liability
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
1,287,000 
Second Quarter 2012 Acquisition
 
Business Acquisition [Line Items]
 
Consideration paid
900,000 
Second Quarter 2012 Acquisition |
Cemetery
 
Business Acquisition [Line Items]
 
Total assets
4,224,000 
Total liabilities
3,178,000 
Fair value of net assets acquired
1,046,000 
Consideration paid
924,000 
Gain on bargain purchase
122,000 
Second Quarter 2012 Acquisition |
Cemetery |
Accounts receivable
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
72,000 
Second Quarter 2012 Acquisition |
Cemetery |
Cemetery property
 
Business Acquisition [Line Items]
 
Estimated fair value of property and equipment acquired
842,000 
Second Quarter 2012 Acquisition |
Cemetery |
Property and equipment
 
Business Acquisition [Line Items]
 
Estimated fair value of property and equipment acquired
518,000 
Second Quarter 2012 Acquisition |
Cemetery |
Perpetual care trusts, restricted, at fair value |
Perpetual care trusts
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
2,780,000 
Second Quarter 2012 Acquisition |
Cemetery |
Noncompete Agreements
 
Business Acquisition [Line Items]
 
Non-compete agreements
12,000 
Second Quarter 2012 Acquisition |
Cemetery |
Perpetual care trust corpus |
Perpetual care trusts
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
2,780,000 
Second Quarter 2012 Acquisition |
Cemetery |
Other liabilities
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
24,000 
Second Quarter 2012 Acquisition |
Cemetery |
Deferred tax liability
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
$ 374,000 
Preliminary Assessment of Fair Value of Net Assets Acquired Elimination of Debt and Other Assets and Purchase Price Gain on Bargain Purchase of Lodi Funeral Home Second Quarter Twenty Twelve Acquisition (Detail) (USD $)
Sep. 30, 2012
Business Acquisition [Line Items]
 
Total assets
$ 14,114,000 
Total liabilities
8,901,000 
Fair value of net assets acquired
5,213,000 
Consideration paid - cash
5,700,000 
Goodwill from purchase
767,000 
Property and equipment
 
Business Acquisition [Line Items]
 
Estimated fair value of property and equipment acquired
2,303,000 
Perpetual care trusts, restricted, at fair value |
Merchandise Trusts
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
4,069,000 
Merchandise Liabilities Noncurrent
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
2,719,000 
Second Quarter 2012 Acquisition
 
Business Acquisition [Line Items]
 
Consideration paid - cash
900,000 
Consideration paid - units
350,000 
Second Quarter 2012 Acquisition |
Funeral Home
 
Business Acquisition [Line Items]
 
Total assets
257,000 
Total liabilities
105,000 
Fair value of net assets acquired
152,000 
Consideration paid - cash
850,000 
Consideration paid - units
350,000 
Total consideration paid
1,744,000 
Goodwill from purchase
1,592,000 
Second Quarter 2012 Acquisition |
Funeral Home |
Property and equipment
 
Business Acquisition [Line Items]
 
Estimated fair value of property and equipment acquired
48,000 
Second Quarter 2012 Acquisition |
Funeral Home |
Perpetual care trusts, restricted, at fair value |
Merchandise Trusts
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
105,000 
Second Quarter 2012 Acquisition |
Funeral Home |
Underlying contract value
 
Business Acquisition [Line Items]
 
Estimated fair value of intangibles
64,000 
Second Quarter 2012 Acquisition |
Funeral Home |
Noncompete Agreements
 
Business Acquisition [Line Items]
 
Estimated fair value of intangibles
40,000 
Fair value of debt assumed for non-compete agreements
544,000 
Second Quarter 2012 Acquisition |
Funeral Home |
Merchandise Liabilities Noncurrent
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
$ 105,000 
Preliminary Assessment of Fair Value of Net Assets Acquired Purchase Price and Resulting Goodwill Third Quarter Twenty Twelve Acquisitions (Detail) (USD $)
Sep. 30, 2012
Business Acquisition [Line Items]
 
Total assets
$ 14,114,000 
Total liabilities
8,901,000 
Fair value of net assets acquired
5,213,000 
Consideration paid - cash
5,700,000 
Goodwill from purchase
767,000 
Accounts receivable
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
211,000 
Cemetery property
 
Business Acquisition [Line Items]
 
Estimated fair value of property and equipment acquired
4,833,000 
Property and equipment
 
Business Acquisition [Line Items]
 
Estimated fair value of property and equipment acquired
2,303,000 
Perpetual care trusts, restricted, at fair value |
Merchandise Trusts
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
4,069,000 
Perpetual care trusts, restricted, at fair value |
Perpetual care trusts
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
2,438,000 
Other assets
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
260,000 
Noncompete Agreements
 
Business Acquisition [Line Items]
 
Fair value of debt assumed for non-compete agreements
280,000 
Deferred margin
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
2,457,000 
Merchandise Liabilities Noncurrent
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
2,719,000 
Perpetual care trust corpus |
Perpetual care trusts
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
2,438,000 
Third Quarter 2012 Acquisitions |
Funeral Home
 
Business Acquisition [Line Items]
 
Non-compete agreements
170,000 
Total assets
1,466,000 
Fair value of net assets acquired
1,466,000 
Consideration paid - cash
2,300,000 
Total consideration paid
2,574,000 
Goodwill from purchase
1,108,000 
Third Quarter 2012 Acquisitions |
Funeral Home |
Property and equipment
 
Business Acquisition [Line Items]
 
Estimated fair value of property and equipment acquired
1,296,000 
Third Quarter 2012 Acquisitions |
Funeral Home |
Noncompete Agreements
 
Business Acquisition [Line Items]
 
Fair value of debt assumed for non-compete agreements
274,000 
Third Quarter 2012 Acquisitions |
Cemeteries and Funeral Homes Property
 
Business Acquisition [Line Items]
 
Total assets
28,580,000 
Total liabilities
9,436,000 
Fair value of net assets acquired
19,144,000 
Consideration paid - cash
20,000,000 
Consideration paid - units
3,500,000 
Total consideration paid
24,730,000 
Goodwill from purchase
5,586,000 
Third Quarter 2012 Acquisitions |
Cemeteries and Funeral Homes Property |
Accounts receivable
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
1,005,000 
Third Quarter 2012 Acquisitions |
Cemeteries and Funeral Homes Property |
Cemetery property
 
Business Acquisition [Line Items]
 
Estimated fair value of property and equipment acquired
6,100,000 
Third Quarter 2012 Acquisitions |
Cemeteries and Funeral Homes Property |
Property and equipment
 
Business Acquisition [Line Items]
 
Estimated fair value of property and equipment acquired
5,864,000 
Third Quarter 2012 Acquisitions |
Cemeteries and Funeral Homes Property |
Perpetual care trusts, restricted, at fair value |
Merchandise Trusts
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
11,884,000 
Third Quarter 2012 Acquisitions |
Cemeteries and Funeral Homes Property |
Perpetual care trusts, restricted, at fair value |
Perpetual care trusts
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
2,232,000 
Third Quarter 2012 Acquisitions |
Cemeteries and Funeral Homes Property |
Other assets
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
122,000 
Third Quarter 2012 Acquisitions |
Cemeteries and Funeral Homes Property |
Noncompete Agreements
 
Business Acquisition [Line Items]
 
Non-compete agreements
1,373,000 
Fair value of debt assumed for non-compete agreements
1,230,000 
Third Quarter 2012 Acquisitions |
Cemeteries and Funeral Homes Property |
Deferred margin
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
3,746,000 
Third Quarter 2012 Acquisitions |
Cemeteries and Funeral Homes Property |
Merchandise Liabilities Noncurrent
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
3,458,000 
Third Quarter 2012 Acquisitions |
Cemeteries and Funeral Homes Property |
Perpetual care trust corpus |
Perpetual care trusts
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
$ 2,232,000 
Final Assessment of Fair Value of Net Assets Acquired Purchase Price and Resulting Goodwill of First, Second and Third Quarter Twenty Eleven Acquisition (Detail) (USD $)
Sep. 30, 2012
Business Acquisition [Line Items]
 
Total assets
$ 14,114,000 
Total liabilities
8,901,000 
Fair value of net assets acquired
5,213,000 
Consideration paid
5,700,000 
Total consideration paid
5,980,000 
Goodwill from purchase
767,000 
Accounts receivable
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
211,000 
Cemetery property
 
Business Acquisition [Line Items]
 
Estimated fair value of property and equipment acquired
4,833,000 
Perpetual care trusts, restricted, at fair value |
Merchandise Trusts
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
4,069,000 
Perpetual care trusts, restricted, at fair value |
Perpetual care trusts
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
2,438,000 
Property and equipment
 
Business Acquisition [Line Items]
 
Estimated fair value of property and equipment acquired
2,303,000 
Other assets
 
Business Acquisition [Line Items]
 
Estimated fair value of assets acquired
260,000 
Deferred margin
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
2,457,000 
Merchandise Liabilities Noncurrent
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
2,719,000 
Perpetual care trust corpus |
Perpetual care trusts
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
2,438,000 
Deferred tax liability
 
Business Acquisition [Line Items]
 
Estimated fair value of liabilities assumed
1,287,000 
Noncompete Agreements
 
Business Acquisition [Line Items]
 
Fair value of debt assumed for non-compete agreements
$ 280,000 
Final Assessment of Fair Value of Net Assets Acquired Purchase Price and Resulting Goodwill from Purchase and Adjustments to Revised Values of Third Quarter Two Thousand Eleven Acquisition (Detail) (USD $)
Sep. 30, 2012
Aug. 17, 2011
Business Acquisition [Line Items]
 
 
Total assets
$ 14,114,000 
 
Total liabilities
8,901,000 
 
Fair value of net assets acquired
5,213,000 
 
Consideration paid
5,700,000 
 
Goodwill from purchase
767,000 
 
Cemetery property
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of property and equipment acquired
4,833,000 
 
Perpetual care trusts, restricted, at fair value |
Perpetual care trusts
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of assets acquired
2,438,000 
 
Property and equipment
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of property and equipment acquired
2,303,000 
 
Deferred margin
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of liabilities assumed
2,457,000 
 
Merchandise Liabilities Noncurrent
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of liabilities assumed
2,719,000 
 
Deferred tax liability
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of liabilities assumed
1,287,000 
 
Perpetual care trust corpus |
Perpetual care trusts
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of liabilities assumed
2,438,000 
 
Third Quarter 2011 Acquisition
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of assets acquired
4,600,000 
 
Total assets
14,371,000 
 
Total liabilities
11,396,000 
 
Fair value of net assets acquired
2,975,000 
 
Consideration paid
4,600,000 
4,600,000 
Goodwill from purchase
1,625,000 
 
Third Quarter 2011 Acquisition |
Cemetery property
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of property and equipment acquired
4,666,000 
 
Third Quarter 2011 Acquisition |
Perpetual care trusts, restricted, at fair value |
Perpetual care trusts
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of assets acquired
981,000 
 
Third Quarter 2011 Acquisition |
Property and equipment
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of property and equipment acquired
4,124,000 
 
Third Quarter 2011 Acquisition |
Deferred margin
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of liabilities assumed
5,017,000 
 
Third Quarter 2011 Acquisition |
Merchandise Liabilities Noncurrent
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of liabilities assumed
4,632,000 
 
Third Quarter 2011 Acquisition |
Deferred tax liability
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of liabilities assumed
766,000 
 
Third Quarter 2011 Acquisition |
Perpetual care trust corpus |
Perpetual care trusts
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of liabilities assumed
981,000 
 
Third Quarter 2011 Acquisition |
Preliminary Allocation
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of assets acquired
4,575,000 
 
Total assets
14,346,000 
 
Total liabilities
11,763,000 
 
Fair value of net assets acquired
2,583,000 
 
Consideration paid
4,600,000 
 
Goodwill from purchase
2,017,000 
 
Third Quarter 2011 Acquisition |
Preliminary Allocation |
Cemetery property
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of property and equipment acquired
4,666,000 
 
Third Quarter 2011 Acquisition |
Preliminary Allocation |
Perpetual care trusts, restricted, at fair value |
Perpetual care trusts
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of assets acquired
981,000 
 
Third Quarter 2011 Acquisition |
Preliminary Allocation |
Property and equipment
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of property and equipment acquired
4,124,000 
 
Third Quarter 2011 Acquisition |
Preliminary Allocation |
Deferred margin
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of liabilities assumed
5,217,000 
 
Third Quarter 2011 Acquisition |
Preliminary Allocation |
Merchandise Liabilities Noncurrent
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of liabilities assumed
4,799,000 
 
Third Quarter 2011 Acquisition |
Preliminary Allocation |
Deferred tax liability
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of liabilities assumed
766,000 
 
Third Quarter 2011 Acquisition |
Preliminary Allocation |
Perpetual care trust corpus |
Perpetual care trusts
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of liabilities assumed
981,000 
 
Third Quarter 2011 Acquisition |
Fair Value Adjustment
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of assets acquired
25,000 
 
Total assets
25,000 
 
Total liabilities
(367,000)
 
Fair value of net assets acquired
392,000 
 
Goodwill from purchase
(392,000)
 
Third Quarter 2011 Acquisition |
Fair Value Adjustment |
Deferred margin
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of liabilities assumed
(200,000)
 
Third Quarter 2011 Acquisition |
Fair Value Adjustment |
Merchandise Liabilities Noncurrent
 
 
Business Acquisition [Line Items]
 
 
Estimated fair value of liabilities assumed
$ (167,000)
 
Segment Information - Additional Information (Detail)
9 Months Ended
Sep. 30, 2012
Entity
Segment Reporting Disclosure [Line Items]
 
Number of distinct reportable segments
Cemetery
 
Segment Reporting Disclosure [Line Items]
 
Number of distinct reportable segments
Segment Information (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Dec. 31, 2011
Revenues
 
 
 
 
 
Revenues
$ 62,197 
$ 60,325 
$ 183,292 
$ 169,663 
 
Costs and expenses
 
 
 
 
 
Selling
11,290 
12,192 
36,200 
33,923 
 
General and administrative
7,015 
7,111 
21,403 
20,569 
 
Corporate overhead
6,546 
5,628 
20,905 
17,572 
 
Depreciation and amortization
2,199 
1,886 
6,759 
6,374 
 
Funeral home
7,096 
5,868 
20,467 
16,875 
 
Acquisition related costs
1,085 
1,189 
2,198 
3,147 
 
Total costs and expenses
57,129 
56,346 
171,053 
160,689 
 
Operating profit
5,068 
3,979 
12,239 
8,974 
 
Total assets
1,329,937 
1,169,858 
1,329,937 
1,169,858 
1,248,758 
Long lived asset additions
16,545 
14,659 
26,845 
25,010 
 
Goodwill
40,393 
20,546 
40,393 
20,546 
31,907 
Cemetery
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Cost of sales
7,646 
7,160 
21,302 
19,369 
 
Cemetery
14,252 
15,312 
41,819 
42,860 
 
Cemetery |
Sales
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
34,123 
34,163 
99,260 
93,487 
 
Cemetery |
Service and other
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
19,248 
18,663 
58,414 
53,982 
 
Funeral Homes Property
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
8,826 
7,499 
25,618 
22,194 
 
Cemetery property
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Amortization of cemetery property
2,305 
1,454 
6,285 
4,412 
 
Cemetery Operations South East
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
33,807 
26,834 
97,282 
82,981 
 
Costs and expenses
 
 
 
 
 
Selling
7,356 
6,686 
22,072 
20,292 
 
General and administrative
3,694 
3,279 
11,130 
9,547 
 
Depreciation and amortization
513 
425 
1,559 
1,183 
 
Total costs and expenses
23,406 
20,455 
68,317 
60,186 
 
Operating profit
10,401 
6,379 
28,965 
22,795 
 
Total assets
512,446 
438,032 
512,446 
438,032 
 
Long lived asset additions
6,641 
7,013 
11,435 
10,900 
 
Goodwill
6,194 
2,700 
6,194 
2,700 
5,662 
Cemetery Operations South East |
Cemetery
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Cost of sales
5,208 
4,056 
14,471 
12,128 
 
Cemetery
6,635 
6,009 
19,085 
17,036 
 
Cemetery Operations South East |
Cemetery |
Sales
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
24,723 
19,480 
69,415 
59,448 
 
Cemetery Operations South East |
Cemetery |
Service and other
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
9,084 
7,354 
27,867 
23,533 
 
Cemetery Operations South East |
Cemetery property
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Amortization of cemetery property
1,396 
839 
3,397 
2,592 
 
Cemetery Operations North East
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
14,195 
13,751 
45,910 
41,863 
 
Costs and expenses
 
 
 
 
 
Selling
2,762 
2,693 
9,220 
8,464 
 
General and administrative
1,486 
1,535 
4,499 
4,555 
 
Depreciation and amortization
220 
219 
660 
663 
 
Total costs and expenses
10,198 
10,182 
30,689 
29,702 
 
Operating profit
3,997 
3,569 
15,221 
12,161 
 
Total assets
297,736 
275,081 
297,736 
275,081 
 
Long lived asset additions
1,133 
436 
2,490 
1,239 
 
Cemetery Operations North East |
Cemetery
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Cost of sales
2,156 
1,965 
5,857 
5,281 
 
Cemetery
3,574 
3,770 
10,453 
10,739 
 
Cemetery Operations North East |
Cemetery |
Sales
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
8,087 
7,744 
26,090 
24,277 
 
Cemetery Operations North East |
Cemetery |
Service and other
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
6,108 
6,007 
19,820 
17,586 
 
Cemetery Operations North East |
Cemetery property
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Amortization of cemetery property
526 
442 
1,939 
1,582 
 
Cemetery Operations West
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
17,465 
19,075 
52,683 
57,167 
 
Costs and expenses
 
 
 
 
 
Selling
2,875 
3,621 
9,482 
10,336 
 
General and administrative
1,828 
2,297 
5,751 
6,469 
 
Depreciation and amortization
551 
444 
1,666 
1,686 
 
Total costs and expenses
10,924 
14,022 
34,210 
39,319 
 
Operating profit
6,541 
5,053 
18,473 
17,848 
 
Total assets
393,685 
365,985 
393,685 
365,985 
 
Long lived asset additions
684 
1,841 
3,889 
5,062 
 
Goodwill
11,948 
11,949 
11,948 
11,949 
11,948 
Cemetery Operations West |
Cemetery
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Cost of sales
1,628 
2,127 
5,031 
5,743 
 
Cemetery
4,042 
5,533 
12,280 
15,085 
 
Cemetery Operations West |
Cemetery |
Sales
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
9,420 
11,939 
29,743 
34,960 
 
Cemetery Operations West |
Cemetery |
Service and other
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
8,045 
7,136 
22,940 
22,207 
 
Cemetery Operations West |
Cemetery property
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Amortization of cemetery property
275 
441 
844 
835 
 
Funeral Home
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
9,603 
7,705 
27,065 
22,749 
 
Costs and expenses
 
 
 
 
 
Depreciation and amortization
529 
391 
1,667 
1,118 
 
Funeral home
7,161 
5,868 
20,648 
16,875 
 
Total costs and expenses
7,690 
6,259 
22,315 
17,993 
 
Operating profit
1,913 
1,446 
4,750 
4,756 
 
Total assets
104,914 
54,895 
104,914 
54,895 
 
Long lived asset additions
8,023 
5,133 
8,361 
7,269 
 
Goodwill
22,251 
5,897 
22,251 
5,897 
14,297 
Funeral Home |
Funeral Homes Property
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
9,603 
7,705 
27,065 
22,749 
 
Corporate
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
 
 
 
 
Costs and expenses
 
 
 
 
 
Selling
163 
130 
995 
807 
 
General and administrative
 
23 
(2)
 
Corporate overhead
6,546 
5,628 
20,905 
17,572 
 
Depreciation and amortization
386 
407 
1,207 
1,724 
 
Acquisition related costs
1,085 
1,189 
2,198 
3,147 
 
Total costs and expenses
8,240 
7,354 
25,433 
23,248 
 
Operating profit
(8,240)
(7,354)
(25,433)
(23,243)
 
Total assets
21,156 
35,865 
21,156 
35,865 
 
Long lived asset additions
64 
236 
670 
540 
 
Corporate |
Cemetery
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Cost of sales
52 
 
104 
 
 
Cemetery
 
 
 
Corporate |
Cemetery |
Sales
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
 
 
 
 
Adjustment
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
(12,873)
(7,040)
(39,648)
(35,102)
 
Costs and expenses
 
 
 
 
 
Selling
(1,866)
(938)
(5,569)
(5,976)
 
Funeral home
(65)
 
(181)
 
 
Total costs and expenses
(3,329)
(1,926)
(9,911)
(9,759)
 
Operating profit
(9,544)
(5,114)
(29,737)
(25,343)
 
Adjustment |
Cemetery
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Cost of sales
(1,398)
(988)
(4,161)
(3,783)
 
Adjustment |
Cemetery |
Sales
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
(8,107)
(5,000)
(25,988)
(25,203)
 
Adjustment |
Cemetery |
Service and other
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
(3,989)
(1,834)
(12,213)
(9,344)
 
Adjustment |
Funeral Homes Property
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
(777)
(206)
(1,447)
(555)
 
Adjustment |
Cemetery property
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Amortization of cemetery property
$ 108 
$ (268)
$ 105 
$ (597)
 
Assets and Liabilities Measured at Fair Value (Detail) (Variable Interest Entity, Primary Beneficiary, USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Merchandise Trusts |
Short-term investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
$ 48,722 
$ 38,312 
Merchandise Trusts |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
13,077 
10,888 
Merchandise Trusts |
Fixed maturities |
U.S. State and local government agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
23 
23 
Merchandise Trusts |
Fixed maturities |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
8,741 
9,765 
Merchandise Trusts |
Fixed maturities |
Other debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
4,313 
1,100 
Merchandise Trusts |
Mutual funds - debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
100,085 
67,421 
Merchandise Trusts |
Mutual funds - equity securities |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
43,432 
22,847 
Merchandise Trusts |
Mutual funds - equity securities |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
5,767 
28,057 
Merchandise Trusts |
Mutual funds - equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
28,476 
20,308 
Merchandise Trusts |
Mutual funds - equity securities |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
53,697 
70,076 
Merchandise Trusts |
Equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
41,378 
41,469 
Merchandise Trusts |
Equity securities |
Preferred Real Estate Investment Trust
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
1,638 
9,001 
Merchandise Trusts |
Equity securities |
Global equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
22,483 
21,882 
Merchandise Trusts |
Other invested assets
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
6,587 
7,360 
Merchandise Trusts |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
365,342 
337,621 
Merchandise Trusts |
Level 1 |
Short-term investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
48,722 
38,312 
Merchandise Trusts |
Level 1 |
Mutual funds - debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
100,085 
67,421 
Merchandise Trusts |
Level 1 |
Mutual funds - equity securities |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
43,432 
22,847 
Merchandise Trusts |
Level 1 |
Mutual funds - equity securities |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
5,767 
28,057 
Merchandise Trusts |
Level 1 |
Mutual funds - equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
28,476 
20,308 
Merchandise Trusts |
Level 1 |
Mutual funds - equity securities |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
53,697 
70,076 
Merchandise Trusts |
Level 1 |
Equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
41,378 
41,469 
Merchandise Trusts |
Level 1 |
Equity securities |
Preferred Real Estate Investment Trust
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
1,638 
9,001 
Merchandise Trusts |
Level 1 |
Equity securities |
Global equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
22,483 
21,882 
Merchandise Trusts |
Level 1 |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
345,678 
319,373 
Merchandise Trusts |
Level 2 |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
13,077 
10,888 
Merchandise Trusts |
Level 2 |
Fixed maturities |
U.S. State and local government agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
23 
23 
Merchandise Trusts |
Level 2 |
Fixed maturities |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
8,741 
9,765 
Merchandise Trusts |
Level 2 |
Fixed maturities |
Other debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
4,313 
1,100 
Merchandise Trusts |
Level 2 |
Other invested assets
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
6,587 
7,360 
Merchandise Trusts |
Level 2 |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
19,664 
18,248 
Perpetual care trusts |
Short-term investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
20,912 
22,607 
Perpetual care trusts |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
24,929 
23,185 
Perpetual care trusts |
Fixed maturities |
U.S. Government and federal agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
513 
513 
Perpetual care trusts |
Fixed maturities |
U.S. State and local government agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
147 
147 
Perpetual care trusts |
Fixed maturities |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
23,898 
22,154 
Perpetual care trusts |
Fixed maturities |
Other debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
371 
371 
Perpetual care trusts |
Mutual funds - debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
107,933 
60,806 
Perpetual care trusts |
Mutual funds - equity securities |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
39,083 
24,580 
Perpetual care trusts |
Mutual funds - equity securities |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
12,911 
20,069 
Perpetual care trusts |
Mutual funds - equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
36,583 
13,515 
Perpetual care trusts |
Mutual funds - equity securities |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
9,149 
41,334 
Perpetual care trusts |
Equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
29,453 
27,998 
Perpetual care trusts |
Equity securities |
Preferred Real Estate Investment Trust
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
953 
19,720 
Perpetual care trusts |
Equity securities |
Global equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
745 
695 
Perpetual care trusts |
Other invested assets
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
 
170 
Perpetual care trusts |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
282,651 
254,679 
Perpetual care trusts |
Level 1 |
Short-term investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
20,912 
22,607 
Perpetual care trusts |
Level 1 |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
513 
513 
Perpetual care trusts |
Level 1 |
Fixed maturities |
U.S. Government and federal agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
513 
513 
Perpetual care trusts |
Level 1 |
Mutual funds - debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
107,933 
60,806 
Perpetual care trusts |
Level 1 |
Mutual funds - equity securities |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
39,083 
24,580 
Perpetual care trusts |
Level 1 |
Mutual funds - equity securities |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
12,911 
20,069 
Perpetual care trusts |
Level 1 |
Mutual funds - equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
36,583 
13,515 
Perpetual care trusts |
Level 1 |
Mutual funds - equity securities |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
9,149 
41,334 
Perpetual care trusts |
Level 1 |
Equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
29,453 
27,998 
Perpetual care trusts |
Level 1 |
Equity securities |
Preferred Real Estate Investment Trust
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
953 
19,720 
Perpetual care trusts |
Level 1 |
Equity securities |
Global equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
745 
695 
Perpetual care trusts |
Level 1 |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
258,235 
231,837 
Perpetual care trusts |
Level 2 |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
24,416 
22,672 
Perpetual care trusts |
Level 2 |
Fixed maturities |
U.S. State and local government agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
147 
147 
Perpetual care trusts |
Level 2 |
Fixed maturities |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
23,898 
22,154 
Perpetual care trusts |
Level 2 |
Fixed maturities |
Other debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
371 
371 
Perpetual care trusts |
Level 2 |
Other invested assets
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
 
170 
Perpetual care trusts |
Level 2 |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
$ 24,416 
$ 22,842