STONEMOR PARTNERS LP, 10-Q filed on 11/7/2013
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2013
Nov. 1, 2013
Document Information [Line Items]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Sep. 30, 2013 
 
Document Fiscal Year Focus
2013 
 
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
 
21,374,037 
Condensed Consolidated Balance Sheet (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Current assets:
 
 
Cash and cash equivalents
$ 19,984 
$ 7,946 
Accounts receivable, net of allowance
52,202 
51,895 
Prepaid expenses
5,758 
3,832 
Other current assets
21,387 
17,418 
Total current assets
99,331 
81,091 
Long-term accounts receivable, net of allowance
76,045 
71,521 
Cemetery property
316,522 
309,980 
Property and equipment, net of accumulated depreciation
85,282 
79,740 
Merchandise trusts, restricted, at fair value
415,355 
375,973 
Perpetual care trusts, restricted, at fair value
302,766 
282,313 
Deferred financing costs, net of accumulated amortization
8,764 
9,238 
Deferred selling and obtaining costs
85,201 
76,317 
Deferred tax assets
69 
381 
Goodwill
47,570 
42,392 
Other assets
11,910 
14,779 
Total assets
1,448,815 
1,343,725 
Current liabilities:
 
 
Accounts payable and accrued liabilities
34,191 
28,973 
Accrued interest
5,134 
1,833 
Current portion, long-term debt
6,550 
2,175 
Total current liabilities
45,875 
32,981 
Other long-term liabilities
1,571 
1,835 
Long-term debt
274,542 
252,774 
Deferred cemetery revenues, net
557,973 
497,861 
Deferred tax liabilities
12,039 
14,910 
Merchandise liability
129,922 
125,869 
Perpetual care trust corpus
302,766 
282,313 
Total liabilities
1,324,688 
1,208,543 
Commitments and contingencies
   
   
Partners' capital
 
 
General partner
(1,495)
386 
Common partners
125,622 
134,796 
Total partners' capital
124,127 
135,182 
Total liabilities and partners' capital
$ 1,448,815 
$ 1,343,725 
Condensed Consolidated Statement of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Revenues:
 
 
 
 
Total revenues
$ 61,539 
$ 62,197 
$ 183,573 
$ 183,292 
Costs and Expenses:
 
 
 
 
Selling expense
11,692 
11,290 
35,134 
36,200 
General and administrative expense
7,902 
7,015 
23,382 
21,403 
Corporate overhead (including $348 and $216 in unit-based compensation for the three months ended September 30, 2013 and 2012, and $1,038 and $625 for the nine months ended September 30, 2013 and 2012, respectively)
7,997 
6,546 
21,657 
20,905 
Depreciation and amortization
2,378 
2,199 
7,159 
6,759 
Acquisition related costs, net of recoveries
243 
1,085 
901 
2,198 
Total cost and expenses
60,802 
57,129 
179,118 
171,053 
Operating profit
737 
5,068 
4,455 
12,239 
Gain on acquisitions
2,530 
 
2,530 
122 
Gain on termination of operating agreement
 
 
 
1,737 
Gain on settlement agreement, net
 
 
12,261 
 
Gain on sale of other assets
 
 
155 
 
Loss on early extinguishment of debt
 
 
21,595 
 
Interest expense
5,193 
5,273 
15,788 
15,109 
Net loss before income taxes
(1,926)
(205)
(17,982)
(1,011)
Income tax benefit
(442)
(1,266)
(2,489)
(1,933)
Net income (loss)
(1,484)
1,061 
(15,493)
922 
General partner's interest in net income (loss) for the period
(26)
21 
(284)
18 
Limited partners' interest in net income (loss) for the period
(1,458)
1,040 
(15,209)
904 
Net income (loss) per limited partner unit (basic and diluted)
$ (0.07)
$ 0.05 
$ (0.73)
$ 0.05 
Weighted average number of limited partners' units outstanding - basic
21,351 
19,491 
20,814 
19,412 
Weighted average number of limited partners' units outstanding - diluted
21,351 
19,743 
20,814 
19,672 
Distributions declared per unit
$ 0.600 
$ 0.590 
$ 1.785 
$ 1.760 
Cemetery
 
 
 
 
Revenues:
 
 
 
 
Merchandise
28,265 
29,943 
83,586 
87,424 
Services
11,051 
11,134 
33,422 
34,481 
Investment and other
11,850 
12,294 
34,098 
35,769 
Costs and Expenses:
 
 
 
 
Perpetual care
1,418 
1,616 
4,199 
4,398 
Merchandise
5,684 
6,030 
16,905 
16,904 
Cemetery expense
14,507 
14,252 
42,700 
41,819 
Funeral Home
 
 
 
 
Revenues:
 
 
 
 
Merchandise
4,266 
3,548 
13,736 
11,135 
Services
6,107 
5,278 
18,731 
14,483 
Total revenues
12,094 
9,603 
36,904 
27,065 
Costs and Expenses:
 
 
 
 
Perpetual care
4,914 
3,739 
14,239 
10,446 
Merchandise
1,573 
1,196 
4,798 
3,726 
Other
2,494 
2,161 
8,044 
6,295 
Depreciation and amortization
859 
529 
2,268 
1,667 
Total cost and expenses
10,020 
7,690 
29,850 
22,315 
Operating profit
$ 2,074 
$ 1,913 
$ 7,054 
$ 4,750 
Condensed Consolidated Statement of Operations (Parenthetical) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Corporate overhead, unit-based compensation
$ 348 
$ 216 
$ 1,038 
$ 625 
Condensed Consolidated Statement of Partners' Capital (USD $)
In Thousands
Total
Common Unit Holders
General Partner
Balance at Dec. 31, 2012
$ 135,182 
$ 134,796 
$ 386 
Proceeds from public offering
38,377 
38,377 
 
Issuance of common units
3,718 
3,718 
 
Compensation related to units awards
996 
996 
 
Net loss
(15,493)
(15,209)
(284)
Cash distributions
(38,653)
(37,056)
(1,597)
Balance at Sep. 30, 2013
$ 124,127 
$ 125,622 
$ (1,495)
Condensed Consolidated Statement of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Operating activities:
 
 
Net income (loss)
$ (15,493)
$ 922 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
Cost of lots sold
6,047 
6,180 
Depreciation and amortization
7,159 
6,759 
Unit-based compensation
1,038 
625 
Accretion of debt discounts
1,676 
1,230 
Gain on termination of operating agreement
 
(1,737)
Gain on acquisitions
(2,530)
(122)
Gain on sale of other assets
(155)
 
Loss on early extinguishment of debt
21,595 
 
Changes in assets and liabilities that provided (used) cash:
 
 
Accounts receivable
(2,148)
(2,333)
Allowance for doubtful accounts
(1,163)
3,743 
Merchandise trust fund
(23,711)
(8,177)
Prepaid expenses
(1,926)
(368)
Other current assets
(3,906)
(344)
Other assets
3,573 
125 
Accounts payable and accrued and other liabilities
8,340 
2,207 
Deferred selling and obtaining costs
(8,884)
(5,363)
Deferred cemetery revenue
51,181 
35,440 
Deferred taxes (net)
(3,260)
(2,341)
Merchandise liability
(537)
(5,649)
Net cash provided by operating activities
36,896 
30,797 
Investing activities:
 
 
Cash paid for cemetery property
(4,210)
(5,417)
Purchase of subsidiaries
(14,100)
(25,676)
Cash paid for property and equipment
(5,366)
(3,321)
Proceeds from sales of other assets
155 
 
Net cash used in investing activities
(23,521)
(34,414)
Financing activities:
 
 
Cash distributions
(38,653)
(35,447)
Additional borrowings on long-term debt
237,002 
63,500 
Repayments of long-term debt
(218,036)
(26,137)
Proceeds from public offering
38,377 
 
Proceeds from general partner contribution
 
89 
Fees paid related to early extinguishment of debt
(14,920)
 
Cost of financing activities
(5,107)
(2,318)
Net cash used in financing activities
(1,337)
(313)
Net increase (decrease) in cash and cash equivalents
12,038 
(3,930)
Cash and cash equivalents - Beginning of period
7,946 
12,058 
Cash and cash equivalents - End of period
19,984 
8,128 
Supplemental disclosure of cash flow information:
 
 
Cash paid during the period for interest
10,756 
9,731 
Cash paid during the period for income taxes
3,315 
3,978 
Non-cash investing and financing activities:
 
 
Acquisition of assets by financing
107 
199 
Issuance of limited partner units for cemetery acquisition
3,718 
4,103 
Acquisition of asset by assumption of directly related liability
$ 3,924 
$ 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, 2013, the Partnership owned 259 and operated 277 cemeteries in 27 states and Puerto Rico and owned and operated 90 funeral homes in 18 states and Puerto Rico.

Basis of Presentation

The unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All interim financial data is unaudited. However, in the opinion of management, the interim financial data as of September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012 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, 2012 condensed consolidated balance sheet data was derived from audited financial statements included in the Company’s 2012 Annual Report on Form 10-K (“2012 Form 10-K”), but does not include all disclosures required by GAAP, which are presented in the Company’s 2012 Form 10-K.

As of September 30, 2013, the Company’s presentation of income tax expense (benefit) within its unaudited condensed consolidated statement of operations has changed. The components of the income tax expense (benefit), “State” and “Federal,” previously presented as two subcaptions, have been collapsed into one caption “Income tax expense (benefit).” This change in the income tax expense (benefit) presentation has no effect on previously reported net income (loss).

Principles of Consolidation

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

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

Use of Estimates

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

Long-Term Accounts Receivable, Net of Allowance
Long-Term Accounts Receivable, Net of Allowance
2. LONG-TERM ACCOUNTS RECEIVABLE, NET OF ALLOWANCE

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

 

     As of  
     September 30,
2013
    December 31,
2012
 
     (in thousands)  

Customer receivables

   $ 167,536      $ 159,726   

Unearned finance income

     (19,529     (18,377

Allowance for contract cancellations

     (19,760     (17,933
  

 

 

   

 

 

 
     128,247        123,416   

Less: current portion, net of allowance

     52,202        51,895   
  

 

 

   

 

 

 

Long-term portion, net of allowance

   $ 76,045      $ 71,521   
  

 

 

   

 

 

 

Activity in the allowance for contract cancellations is as follows:

 

     For the nine months ended September 30,  
     2013     2012  
     (in thousands)  

Balance - Beginning of period

   $ 17,933      $ 17,582   

Provision for cancellations

     14,791        14,858   

Charge-offs - net

     (12,964     (11,973
  

 

 

   

 

 

 

Balance - End of period

   $ 19,760      $ 20,467   
  

 

 

   

 

 

 
Cemetery Property
Cemetery Property
3. CEMETERY PROPERTY

Cemetery property consisted of the following:

 

     As of  
     September 30,
2013
     December 31,
2012
 
     (in thousands)  

Developed land

   $ 72,752       $ 71,318   

Undeveloped land

     163,919         162,275   

Mausoleum crypts and lawn crypts

     70,053         69,525   

Other land

     9,798         6,862   
  

 

 

    

 

 

 

Total

   $ 316,522       $ 309,980   
  

 

 

    

 

 

 
Property and Equipment
Property and Equipment
4. PROPERTY AND EQUIPMENT

Major classes of property and equipment follow:

 

     As of  
     September 30,
2013
    December 31,
2012
 
     (in thousands)  

Building and improvements

   $ 90,516      $ 82,056   

Furniture and equipment

     44,491        42,353   
  

 

 

   

 

 

 
     135,007        124,409   

Less: accumulated depreciation

     (49,725     (44,669
  

 

 

   

 

 

 

Property and equipment - net

   $ 85,282      $ 79,740   
  

 

 

   

 

 

 

Depreciation expense was $2.0 million and $5.6 million for the three and nine months ended September 30, 2013, respectively, as compared to $1.7 million and $5.2 million during the same periods last year.

Merchandise Trusts
Merchandise Trusts
5. MERCHANDISE TRUSTS

At September 30, 2013, 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 $7.9 million and $7.6 million of investments held in trust by the West Virginia Funeral Directors Association at September 30, 2013 and December 31, 2012, respectively, in its merchandise trust assets. As required by law, the Company deposits a portion of certain funeral merchandise sales in West Virginia into a trust that is held by the West Virginia Funeral Directors Association. These trusts are recorded at their account value, which approximates their fair value.

The cost and market value associated with the assets held in merchandise trusts at September 30, 2013 and December 31, 2012 were as follows:

 

As of September 30, 2013

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

Short-term investments

   $ 42,789       $ —         $ —        $ 42,789   

Fixed maturities:

          

U.S. Government and federal agency

     —           —           —          —     

U.S. State and local government agency

     —           —           —          —     

Corporate debt securities

     9,154         94         (171     9,077   

Other debt securities

     5,465         —           (16     5,449   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     14,619         94         (187     14,526   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

     118,600         906         (7,611     111,895   

Mutual funds - equity securities

     144,877         11,881         (1,641     155,117   

Equity securities

     76,321         3,343         (1,292     78,372   

Other invested assets

     4,912         —           (119     4,793   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total managed investments

   $ 402,118       $ 16,224       $ (10,850   $ 407,492   
  

 

 

    

 

 

    

 

 

   

 

 

 

West Virginia Trust Receivable

     7,863         —           —          7,863   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 409,981       $ 16,224       $ (10,850   $ 415,355   
  

 

 

    

 

 

    

 

 

   

 

 

 

As of December 31, 2012

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

Short-term investments

   $ 27,890       $ —         $ —        $ 27,890   

Fixed maturities:

          

U.S. Government and federal agency

     —           —           —          —     

U.S. State and local government agency

     —           —           —          —     

Corporate debt securities

     8,590         165         (41     8,714   

Other debt securities

     4,320         —           (3     4,317   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     12,910         165         (44     13,031   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

     105,388         3,425         (892     107,921   

Mutual funds - equity securities

     145,538         6,229         (6,697     145,070   

Equity securities

     68,714         3,448         (4,755     67,407   

Other invested assets

     7,376         165         (444     7,097   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total managed investments

   $ 367,816       $ 13,432       $ (12,832   $ 368,416   
  

 

 

    

 

 

    

 

 

   

 

 

 

West Virginia Trust Receivable

     7,557         —           —          7,557   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 375,373       $ 13,432       $ (12,832   $ 375,973   
  

 

 

    

 

 

    

 

 

   

 

 

 

The contractual maturities of debt securities as of September 30, 2013 were as follows:

 

As of September 30, 2013

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

U.S. Government and federal agency

   $ —         $ —         $ —         $ —     

U.S. State and local government agency

     —           —           —           —     

Corporate debt securities

     —           3,867         5,210         —     

Other debt securities

     2,150         3,299         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

   $ 2,150       $ 7,166       $ 5,210       $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 

 

An aging of unrealized losses on the Company’s investments in fixed maturities and equity securities at September 30, 2013 and December 31, 2012 is presented below:

 

     Less than 12 months      12 Months or more      Total  

As of September 30, 2013

   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

     4,381         135         701         36         5,082         171   

Other debt securities

     3,753         12         1,246         4         4,999         16   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     8,134         147         1,947         40         10,081         187   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securites

     91,057         6,631         6,950         980         98,007         7,611   

Mutual funds - equity securites

     31,352         1,257         4,196         384         35,548         1,641   

Equity securities

     22,605         1,092         3,303         200         25,908         1,292   

Other invested assets

     1,921         119         —           —           1,921         119   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 155,069       $ 9,246       $ 16,396       $ 1,604       $ 171,465       $ 10,850   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     Less than 12 months      12 Months or more      Total  

As of December 31, 2012

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

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

     2,140         20         297         21         2,437         41   

Other debt securities

     4,317         3         —           —           4,317         3   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     6,457         23         297         21         6,754         44   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securites

     6,388         463         4,198         429         10,586         892   

Mutual funds - equity securites

     48,255         5,500         19,655         1,197         67,910         6,697   

Equity securities

     17,932         1,527         15,538         3,228         33,470         4,755   

Other invested assets

     2,558         444         —           —           2,558         444   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 81,590       $ 7,957       $ 39,688       $ 4,875       $ 121,278       $ 12,832   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

A reconciliation of the Company’s merchandise trust activities for the nine months ended September 30, 2013 is presented below:

 

Fair

Value at

12/31/2012

   Contributions      Distributions     Interest/
Dividends
     Capital
Gain
Distributions
     Realized
Gain/
Loss
     Taxes     Fees     Unrealized
Change in
Fair Value
     Fair
Value at
9/30/2013
 
(in thousands)  
$375,973      52,906         (39,081     12,198         —           13,581         (2,787     (2,209     4,774       $ 415,355   

The Company made net contributions into the trusts of approximately $13.8 million during the nine months ended September 30, 2013. During the nine months ended September 30, 2013, purchases and sales of securities available for sale included in trust investments were approximately $399.0 million and $411.0 million, respectively. Contributions include $10.3 million of assets that were acquired through acquisitions during the nine months ended September 30, 2013.

 

Other-Than-Temporary Impairments of Trust Assets

During the three months ended September 30, 2013, the Company determined that there were 3 securities with an aggregate cost basis of approximately $1.2 million and an aggregate fair value of approximately $0.9 million, resulting in an impairment of $0.3 million, wherein such impairment was considered to be other-than-temporary. During the nine months ended September 30, 2013, the Company determined that there were 7 securities with an aggregate cost basis of approximately $2.6 million and an aggregate fair value of approximately $1.6 million, resulting in an impairment of $1.0 million, wherein such impairment was considered to be other-than-temporary. 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. Accordingly, the Company adjusted the cost basis of these assets to their current value and offset this change against deferred revenue. This reduction in deferred revenue will be reflected in earnings in future periods as the underlying merchandise is delivered or the underlying service is performed.

During the three months ended September 30, 2012, the Company determined that there were no other than temporary impairments to the investment portfolio for merchandise trusts.

Perpetual Care Trusts
Perpetual Care Trusts
6. PERPETUAL CARE TRUSTS

At September 30, 2013, the Company’s perpetual care trusts consisted of the following types of assets:

 

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

 

    Publicly traded mutual funds that invest in underlying debt securities;

 

    Publicly traded mutual funds that invest in underlying equity securities;

 

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

 

    Fixed maturity debt securities issued by various corporate entities;

 

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

 

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

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

The cost and market value associated with the assets held in perpetual care trusts at September 30, 2013 and December 31, 2012 were as follows:

 

            Gross      Gross        
            Unrealized      Unrealized     Fair  

As of September 30, 2013

   Cost      Gains      Losses     Value  
     (in thousands)  

Short-term investments

   $ 13,971       $ —         $ —        $ 13,971   

Fixed maturities:

          

U.S. Government and federal agency

     302         73         —          375   

U.S. State and local government agency

     —           —           —          —     

Corporate debt securities

     24,258         249         (437     24,070   

Other debt securities

     371         —           —          371   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     24,931         322         (437     24,816   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

     120,560         530         (4,664     116,426   

Mutual funds - equity securities

     96,743         14,468         —          111,211   

Equity securities

     26,309         9,764         (22     36,051   

Other invested assets

     99         192         —          291   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 282,613       $ 25,276       $ (5,123   $ 302,766   
  

 

 

    

 

 

    

 

 

   

 

 

 

As of December 31, 2012

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

Short-term investments

   $ 21,419       $ —         $ —        $ 21,419   

Fixed maturities:

          

U.S. Government and federal agency

     408         104         —          512   

U.S. State and local government agency

     —           —           —          —     

Corporate debt securities

     22,690         702         (101     23,291   

Other debt securities

     371         —           —          371   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     23,469         806         (101     24,174   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

     103,909         3,429         (150     107,188   

Mutual funds - equity securities

     94,239         5,222         (249     99,212   

Equity securities

     23,797         6,563         (455     29,905   

Other invested assets

     113         302         —          415   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 266,946       $ 16,322       $ (955   $ 282,313   
  

 

 

    

 

 

    

 

 

   

 

 

 

The contractual maturities of debt securities as of September 30, 2013 were as follows:

 

     Less than      1 year through      6 years through      More than  

As of September 30, 2013

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

U.S. Government and federal agency

   $ 254       $ 121       $ —         $ —     

U.S. State and local government agency

     —           —           —           —     

Corporate debt securities

     153         10,162         13,755         —     

Other debt securities

     371         —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

   $ 778       $ 10,283       $ 13,755       $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 

An aging of unrealized losses on the Company’s investments in fixed maturities and equity securities at September 30, 2013 and December 31, 2012 held in perpetual care trusts is presented below:

 

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

As of September 30, 2013

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

     11,142         342         1,910         95         13,052         437   

Other debt securities

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     11,142         342         1,910         95         13,052         437   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securites

     97,340         3,869         15,542         795         112,882         4,664   

Mutual funds - equity securites

     —           —           —           —           —           —     

Equity securities

     1,011         22         —           —           1,011         22   

Other invested assets

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 109,493       $ 4,233       $ 17,452       $ 890       $ 126,945       $ 5,123   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

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

As of December 31, 2012

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

     4,630         48         711         53         5,341         101   

Other debt securities

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     4,630         48         711         53         5,341         101   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securites

     859         35         870         115         1,729         150   

Mutual funds - equity securites

     34,805         249         —           —           34,805         249   

Equity securities

     4,269         238         545         217         4,814         455   

Other invested assets

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 44,563       $ 570       $ 2,126       $ 385       $ 46,689       $ 955   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

A reconciliation of the Company’s perpetual care trust activities for the nine months ended September 30, 2013 is presented below:

 

Fair                        Capital      Realized                  Unrealized      Fair  
Value at                 Interest/      Gain      Gain/                  Change in      Value at  

12/31/2012

   Contributions      Distributions     Dividends      Distributions      Loss      Taxes     Fees     Fair Value      9/30/2013  
(in thousands)  
$282,313      12,565         (9,428     11,060         —           3,773         (647     (1,656     4,786       $ 302,766   

The Company made net contributions into the trusts of approximately $3.1 million during the nine months ended September 30, 2013. During the nine months ended September 30, 2013, purchases and sales of securities available for sale included in trust investments were approximately $95.9 million and $95.1 million, respectively. Contributions include $5.9 million of assets that were acquired through acquisitions during the nine months ended September 30, 2013.

Other-Than-Temporary Impairments of Trust Assets

During the three and nine months ended September 30, 2013 and 2012, the Company determined that there were no other than temporary impairments to the investment portfolio in the perpetual care trusts.

Goodwill and Intangible Assets
Goodwill and Intangible Assets
7. GOODWILL AND INTANGIBLE ASSETS

Goodwill

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

A rollforward of goodwill by reportable segment is as follows:

 

     Cemeteries      Funeral         
     Southeast      Northeast      West      Homes      Total  
     (in thousands)  

Balance as of December 31, 2012

   $ 6,174       $ —         $ 11,948       $ 24,270       $ 42,392   

Goodwill acquired from acquisitions during the nine months ended September 30, 2013

     —           —           —           5,178         5,178   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of September 30, 2013

   $ 6,174       $ —         $ 11,948       $ 29,448       $ 47,570   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other Acquired Intangible Assets

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

 

     As of      As of  
     September 30, 2013      December 31, 2012  
     Gross Carrying      Accumulated     Net Intangible      Gross Carrying      Accumulated     Net Intangible  
     Amount      Amortization     Asset      Amount      Amortization     Asset  
     (in thousands)  

Amortized intangible assets:

               

Underlying contract value

   $ 6,239       $ (624   $ 5,615       $ 6,239       $ (555   $ 5,684   

Non-compete agreements

     7,950         (3,668     4,282         6,023         (2,553     3,470   

Other intangible assets

     269         (93     176         269         (81     188   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total intangible assets

   $ 14,458       $ (4,385   $ 10,073       $ 12,531       $ (3,189   $ 9,342   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

The increase in non-compete agreements was the result of an acquisition consummated in the first quarter of 2013. The fair value was determined by comparing the discounted cash flows of the acquired business with and without competition as of the date of acquisition. 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,      December 31,  
     2013      2012  
     (in thousands)  

7.875% Senior Notes, due 2021

   $ 175,000       $ —     

10.25% Senior Notes, due 2017

     —           150,000   

Revolving Credit Facility, due January 2017

     99,502         101,700   

Notes payable - acquisition debt

     4,159         1,465   

Notes payable - acquisition non-competes

     4,364         3,830   

Insurance and vehicle financing

     2,552         1,298   
  

 

 

    

 

 

 

Total

     285,577         258,293   

Less current portion

     6,550         2,175   

Less unamortized bond and note payable discounts

     4,485         3,344   
  

 

 

    

 

 

 

Long-term portion

   $ 274,542       $ 252,774   
  

 

 

    

 

 

 

 

This note includes a summary of material terms of the Company’s senior notes and credit facility. For a more detailed description of the Company’s long-term debt agreements, see the Company’s 2012 Form 10-K. The increase in notes payable acquisition debt and acquisition non-competes was the result of acquisitions consummated in the first quarter of 2013. See Note 13 for further details.

7.875% Senior Notes due 2021

On May 28, 2013, the Company issued $175.0 million aggregate principal amount of 7.875% Senior Notes due 2021 (the “Senior Notes”). The Company pays 7.875% interest per annum on the principal amount of the Senior Notes, payable in cash semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2013. The net proceeds from the offering were used to retire 10.25% Senior Notes due 2017 and the remaining proceeds were used for general corporate purposes. The Senior Notes were issued at 97.832% of par resulting in gross proceeds of $171.2 million with an original issue discount of approximately $3.8 million. The Company incurred debt issuance costs and fees of approximately $4.2 million. These costs and fees are deferred and will be amortized over the life of these notes. 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 2.31%, which would imply a fair value of $179.0 million at September 30, 2013. This valuation is based on level 2 inputs as defined in Note 15. As of September 30, 2013, the Company was in compliance with all applicable covenants of the Senior Notes.

10.25% Senior Notes due 2017

Prior to their retirement in the second quarter of 2013, the Company had outstanding a $150.0 million aggregate principal amount of 10.25% Senior Notes due 2017 (the “Prior Senior Notes”), with an original issue discount of approximately $4.0 million. The Company paid 10.25% interest per annum on the principal amount of the Prior Senior Notes, payable in cash semi-annually in arrears on June 1 and December 1 of each year. The Prior Senior Notes were due to mature on December 1, 2017. In the second quarter of 2013, the Company retired the notes using the proceeds from the Senior Notes offering described above. The Company made a tender offer to repurchase the Prior Senior Notes and paid $14.9 million to retire the Prior Senior Notes inclusive of the tender premium and accrued interest from the date of repurchase through December 1, 2013, the first redemption date for the Prior Senior Notes. In addition the Company incurred expenses of $6.7 million related to the refinancing event inclusive of $2.6 million of unamortized original issue discount and $4.1 million of unamortized capitalized debt issue costs related to the Prior Senior Notes.

Credit Facility

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

On February 19, 2013, the Company entered into the First Amendment to the Credit Agreement, which increased the total availability under the Revolving Credit Facility (the “Credit Facility”) by $10.0 million to $140.0 million (the “Credit Facility”) of which $99.5 million was outstanding at September 30, 2013. The Credit Facility may be used to finance working capital requirements, Permitted Acquisitions and Capital Expenditures. The maturity date of the Credit Facility is January 19, 2017.

On May 8, 2013, the Company entered into the Second Amendment to the Credit Agreement, which allowed the Company to incur additional indebtedness to be evidenced by the 2021 Senior Notes, to enter into the related indenture and to use the proceeds of the Senior Notes offering, in part, to fund the retirement of the Prior Senior Notes.

On June 18, 2013, the Company entered into the Third Amendment to the Credit Agreement. The Third Amendment amended certain financial covenants under the Credit Agreement as follows:

 

  (i) for any most recently completed four fiscal quarters, consolidated EBITDA shall not be less than the sum of $57,822,000 plus 80% of the aggregate of all consolidated EBITDA for each Permitted Acquisition completed after March 31, 2013; and

 

  (ii) for the periods set forth below, Maximum Consolidated Leverage Ratio shall not be greater than as set forth below, subject to the Borrowers’ option to temporarily increase the Consolidated Leverage Ratio in connection with a Significant Permitted Acquisition Transaction as described below:

 

Measurement Period Ending

   Maximum Consolidated Leverage Ratio

June 30, 2013 through December 31, 2013

   4.000 to 1.0

March 31, 2014

   3.875 to 1.0

June 30, 2014 and thereafter

   3.750 to 1.0

The Third Amendment also increased the ranges of the Applicable Rates to 3.00%, 4.00%, and .800% for Base Rate loans, Eurodollar Rate Loans and Letter of Credit Fees, and Commitment Fees, respectively, when the Consolidated Leverage Ratio is greater than or equal to 3.75 to 1.0.

The Third Amendment also increased the amount of aggregate consideration that the Company may pay for a Permitted Acquisition after March 31, 2014, without Required Lender approval, to $10.0 million on an individual basis and $50.0 million when aggregated with the total Aggregate Consideration paid by or on behalf of the Company for all other Permitted Acquisitions which closed within the immediately preceding 365 days.

The Third Amendment added a defined term for Significant Permitted Acquisition Transaction to describe a Permitted Acquisition in which the Aggregate Consideration exceeds $35.0 million when aggregated with the total Aggregate Consideration for all other Permitted Acquisitions which closed within the immediately preceding 180 days. In the case of a Significant Permitted Acquisition Transaction, the Third Amendment permits the Borrowers, subject to certain limitations, to temporarily increase the Consolidated Leverage Ratio to 4.00 to 1.0 for one or more the four immediately succeeding covenant measurement periods.

In addition, the Third Amendment includes certain conforming changes to reflect the issuance of the Senior Notes.

At September 30, 2013, amounts outstanding under the Credit Facility bore interest at rates between 3.5% and 4.0%. Amounts borrowed may be either Base Rate Loans or Eurodollar Rate Loans and amounts repaid or prepaid during the term may be reborrowed. Depending on the type of loan, borrowings bear interest at the Base Rate or Eurodollar Rate, plus applicable margins ranging from 1.25% to 3.00% and 2.25% to 4.00%, respectively, depending on the Company’s Consolidated Leverage Ratio. The Base Rate is the highest of the Prime Rate, the Federal Funds Rate plus 0.50%, or the Eurodollar Rate plus 1.0%. The Eurodollar rate is the British Bankers Association LIBOR Rate. Amounts outstanding under the Credit Facility approximate their fair value.

The Credit Agreement requires the Company to pay an unused Commitment Fee, which is calculated based on the amount by which the commitments under the Credit Agreement exceed the usage of such commitments. The Commitment Fee Rate ranges from 0.375% to 0.800% depending on the Company’s Consolidated Leverage Ratio.

The Credit Agreement contains restrictive covenants that, among other things, prohibit distributions upon defined events of default, restrict investments and sales of assets and require the Company to maintain certain financial covenants, including specified financial ratios. A material decrease in revenues could cause the Company to breach certain of its financial covenants. Any such breach could allow the Lenders to accelerate the Company’s debt 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, 2013, the Company was in compliance with all applicable financial covenants.

Income Taxes
Income Taxes
9. INCOME TAXES

As of September 30, 2013, the Company’s taxable corporate subsidiaries had federal net operating loss carryforwards of approximately $163.6 million, which will begin to expire in 2019 and $201.8 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, 2013 and 2012 is based upon the estimated annual effective tax rates expected to be applicable to the Company for 2013 and 2012, respectively. The Company’s effective tax rate differs from its statutory tax rate primarily because the Company’s legal entity structure includes different tax filing entities, including a significant number of partnerships that are not subject to paying tax.

The Internal Revenue Service (“IRS”) audited the Company’s federal income tax return for the year ended December 31, 2010. The scope of this audit included an audit of the Company’s qualifying income. In order to be treated as a partnership for federal income tax purposes, at least 90% of the Company’s gross income must be qualifying income. The IRS concluded its audit and notified the Company on April 11, 2013 that it was not proposing any adjustments to the return as filed.

The Company is not currently under examination by any federal or state jurisdictions. The federal statute of limitations and certain state statutes of limitations are open from 2009 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, 2013 and December 31, 2012, deferred cemetery revenues, net, consisted of the following:

 

     As of  
     September 30,     December 31,  
     2013     2012  
     (in thousands)  

Deferred cemetery revenue

   $ 389,776      $ 346,621   

Deferred merchandise trust revenue

     82,002        65,728   

Deferred merchandise trust unrealized gains

     5,374        600   

Deferred pre-acquisition margin

     133,583        132,221   

Deferred cost of goods sold

     (52,762     (47,309
  

 

 

   

 

 

 

Deferred cemetery revenues, net

   $ 557,973      $ 497,861   
  

 

 

   

 

 

 

Deferred selling and obtaining costs

   $ 85,201      $ 76,317   

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, 2013, the Company was committed to operating lease payments for premises, automobiles and office equipment under various operating leases with initial terms ranging from one to ten years and options to renew at varying terms. Expenses under operating leases were $0.7 million and $2.0 million for the three and nine months ended September 30, 2013, respectively, and $0.6 million and $1.9 million for the three and nine months ended September 30, 2012, respectively.

 

At September 30, 2013, operating leases will result in future payments in the following approximate amounts from January 1, 2014 and beyond:

 

     (in thousands)  

2014

   $ 1,608   

2015

     1,048   

2016

     936   

2017

     891   

2018

     875   

Thereafter

     1,927   
  

 

 

 

Total

   $ 7,285   
  

 

 

 
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, 2013 and 2012 are summarized in the table below:

 

     Three months ended      Nine months ended  
     September 30,      September 30,  
     2013      2012      2013      2012  
     (in thousands)      (in thousands)  

Unit appreciation rights

   $ 137       $ 133       $ 416       $ 381   

Restricted phantom units

     211         83         622         244   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total unit-based compensation expense

   $ 348       $ 216       $ 1,038       $ 625   
  

 

 

    

 

 

    

 

 

    

 

 

 

As of September 30, 2013, there was approximately $0.3 million in non-vested unit appreciation rights expense outstanding. These unit appreciation rights will be expensed through the first half of 2017.

The diluted weighted average number of limited partners’ units outstanding presented on the unaudited condensed consolidated statement of operations does not include 306,723 units and 318,134 units for the three and nine months ended September 30, 2013, respectively, as their effects would be anti-dilutive.

Other Unit Issuances

On February 19, 2013, the Company issued 159,635 units in connection with an acquisition. On June 21, 2013 and 2012, the Company issued 4,923 units and 9,853 units, respectively, in connection with an acquisition consummated in the second quarter of 2010. On June 6, 2012, the Company issued 13,720 units in connection with an acquisition consummated in the second quarter of 2012. On July 31, 2012, the Company issued 128,299 units in connection with an acquisition consummated in the third quarter of 2012. See Note 13.

On March 26, 2013, the Company completed a follow-on public offering of 1,610,000 common units at a price of $25.35 per unit. Net proceeds of the offering, after deducting underwriting discounts and offering expenses, were approximately $38.4 million. The proceeds from the offering were used to pay off debt on the Credit Facility.

Acquisitions
Acquisitions
13. ACQUISITIONS

First Quarter 2013 Acquisition

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

 

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

The table below reflects the Company’s 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:

  

Accounts receivable

   $ 995   

Property and equipment

     8,315   

Merchandise trusts, restricted, at fair value

     4,853   

Non-compete agreements

     1,927   
  

 

 

 

Total assets

     16,090   
  

 

 

 

Liabilities:

  

Deferred margin

     2,419   

Merchandise liabilities

     2,233   
  

 

 

 

Total liabilities

     4,652   
  

 

 

 

Fair value of net assets acquired

     11,438   
  

 

 

 

Consideration paid - cash

     9,100   

Consideration paid - units

     3,592   

Fair value of note payable

     3,000   

Fair value of debt assumed for non-compete agreements

     924   
  

 

 

 

Total consideration paid

     16,616   
  

 

 

 

Goodwill from purchase

   $ 5,178   
  

 

 

 

Third Quarter 2013 Acquisition

On August 1, 2013, certain subsidiaries of the Company (collectively the “Buyer”) entered into an Asset Purchase and Sale Agreement with Carriage Cemetery Services, Inc. (the “Seller”). Pursuant to the Agreement, the Buyer acquired 1 cemetery in Virginia, including certain related assets, and assumed certain related liabilities. In consideration for the net assets acquired, the Buyer paid the Seller $5.0 million in cash.

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

 

     Preliminary  
     Assessment  
     (in thousands)  

Assets:

  

Accounts receivable

   $ 525   

Cemetery property

     3,900   

Property and equipment

     1,047   

Merchandise trusts, restricted, at fair value

     5,461   

Perpetual care trusts, restricted, at fair value

     5,888   
  

 

 

 

Total assets

     16,821   
  

 

 

 

Liabilities:

  

Merchandise liabilities

     1,252   

Deferred margin

     1,356   

Perpetual care trust corpus

     5,888   

Other liabilities

     94   

Deferred tax liability

     701   
  

 

 

 

Total liabilities

     9,291   
  

 

 

 

Fair value of net assets acquired

     7,530   
  

 

 

 

Consideration paid

     5,000   
  

 

 

 

Gain on bargain purchase

   $ 2,530   
  

 

 

 

First Quarter 2012 Acquisition

In the 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 final 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.

 

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

 

     Final  
     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 final assessment of the fair value of net assets acquired. The resulting goodwill is recorded in the Company’s Funeral Homes operating segment.

 

     Final  
     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 final assessment of the fair value of net assets acquired. The resulting goodwill is recorded in the Company’s Funeral Homes operating segment.

 

     Final  
     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 final 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.

 

     Final  
     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

     1,777   
  

 

 

 

Total assets

     28,984   
  

 

 

 

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

     19,548   
  

 

 

 

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

   $ 5,182   
  

 

 

 

 

If the acquisitions from 2013 and 2012 had been consummated on January 1, 2012, on a pro forma basis, for the three and nine months ended September 30, 2013 and 2012, consolidated revenues, consolidated net income (loss) and net income (loss) per limited partner unit (basic and diluted) would have been as follows:

 

     Three months ended      Nine months ended  
     September 30,      September 30,  
     2013     2012      2013     2012  
     (in thousands)      (in thousands)  

Revenue

   $ 61,585      $ 63,891       $ 184,497      $ 191,463   

Net income (loss)

     (4,037     1,000         (18,105     2,848   

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

   $ (.19   $ .05       $ (.85   $ .14   

These pro forma results are unaudited and have been prepared for comparative purposes only and include certain adjustments such as increased interest on the acquisition of debt and recognition of gains on acquisitions occurring during 2013 in 2012 rather than in the current period. They do not purport to be indicative of the results of operations which actually would have resulted had the combination been in effect on January 1, 2012 or of future results of operations of the locations. The Company’s first quarter 2012 acquisition relates to the Amended Operating Agreement as noted above. Therefore, the results of operations for this property have been included in the Company’s results since 2009.

Since their respective dates of acquisition, the properties acquired in 2013 have contributed $1.3 million and $2.8 million of revenue and $0.2 million and $0.5 million of operating profit for the three and nine months ended September 30, 2013, respectively. The properties acquired in the first three quarters of 2012 have contributed $2.5 million and $7.1 million of revenue for the three and nine months ended September 30, 2013, respectively, and $0.1 million of operating profit for both the three and nine months ended September 30, 2013.

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.

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.

First and Second Quarter 2013 Settlement

During the nine months ended September 30, 2013 the Company recovered $18.4 million, net of legal fees, costs, and contractual obligations related to the settlement of claims from locations that the Company acquired in 2010 and 2011. Of this amount $6.5 million was contributed directly to the related perpetual care and merchandise trusts on the Company’s behalf. $3.4 million of these direct payments represent a gain on settlement agreement on the unaudited condensed consolidated statement of operations due to an increase in the merchandise trusts not previously accrued for in purchase accounting.

The Company received $11.9 million in cash proceeds from the settlement. Of this amount, $1.7 million and $1.3 million are for the reimbursement of legal fees and are recorded as recoveries to corporate overhead and acquisition related costs, respectively. The remaining proceeds were recorded as a gain on settlement agreement on the unaudited condensed consolidated statement of operations. The total gain on settlement for the nine months ended September 30, 2013 was $12.3 million.

 

Third Quarter 2013 Agreements with the Archdiocese of Philadelphia

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

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

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

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

 

Lease Years 1-5

   None

Lease Years 6-20

   $1,000,000 per Lease Year

Lease Years 21-25

   $1,200,000 per Lease Year

Lease Years 26- 35

   $1,500,000 per Lease Year

Lease Years 36-60

   None

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

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

Each of Tenant and Landlord shall have the right to terminate the Lease after December 31, 2013 (the “Pre-Commencement Expiration Date”) and prior to the Commencement Date if certain conditions are not satisfied. These conditions include, but are not limited to, the Tenant’s obtaining of financing for the Up-Front Rent and the Landlord’s obtaining of internal Archdiocesan approvals for the agreement and approval from the Orphans’ Division of the Court of Common Pleas of Philadelphia County.

If Orphans’ Court approval has not been received by the Pre-Commencement Expiration Date (other than due to receipt of an adverse decision and the exhaustion of all appeals), any party may extend the Pre-Commencement Expiration Date to March 31, 2014. In addition, if StoneMor must include or incorporate by reference any historical financial information of the Cemeteries, Tenant shall have the right to extend the Pre-Commencement Expiration Date to such date that is 90 days after the date that Landlord provides such historical financial information but in no event beyond June 30, 2014. However, notwithstanding any such extension by Tenant, Tenant shall have the right to terminate the Lease if Landlord has not provided the requested historical financial information by March 31, 2014.

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

Segment Information
Segment Information
14. SEGMENT INFORMATION

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

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

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

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

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

 

Segment information is as follows:

As of and for the three months ended September 30, 2013:

 

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

Revenues

                  

Sales

   $ 24,304       $ 8,963       $ 10,440       $ —         $ —        $ (11,230   $ 32,477   

Service and other

     9,200         7,078         8,494         —           —          (6,083     18,689   

Funeral home

     —           —           —           12,094         —          (1,721     10,373   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

     33,504         16,041         18,934         12,094         —          (19,034     61,539   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Costs and expenses

                  

Cost of sales

     4,929         1,811         2,202         —           —          (1,840     7,102   

Cemetery

     6,787         3,691         4,029         —           —          —          14,507   

Selling

     7,769         3,081         3,367         —           —          (2,525     11,692   

General and administrative

     4,064         1,582         2,256         —           —          —          7,902   

Corporate overhead

     —           —           —           —           7,997        —          7,997   

Depreciation and amortization

     575         224         548         859         172        —          2,378   

Funeral home

     —           —           —           9,161         —          (180     8,981   

Acquisition related costs, net of recoveries

     —           —           —           —           243        —          243   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total costs and expenses

     24,124         10,389         12,402         10,020         8,412        (4,545     60,802   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating profit

   $ 9,380       $ 5,652       $ 6,532       $ 2,074       $ (8,412   $ (14,489   $ 737   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 557,308       $ 306,577       $ 418,119       $ 131,750       $ 35,061      $ —        $ 1,448,815   

Amortization of cemetery property

   $ 1,152       $ 585       $ 305       $ —         $ —        $ (132   $ 1,910   

Long lived asset additions

   $ 6,287       $ 451       $ 1,477       $ 362       $ 15      $ —        $ 8,592   

Goodwill

   $ 6,174       $ —         $ 11,948       $ 29,448       $ —        $ —        $ 47,570   

 

As of and for the nine months ended September 30, 2013:

 

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

Revenues

                  

Sales

   $ 70,941       $ 27,664       $ 32,483       $ —         $ —        $ (36,332   $ 94,756   

Service and other

     28,779         19,382         24,238         —           —          (16,049     56,350   

Funeral home

     —           —           —           36,904         —          (4,437     32,467   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

     99,720         47,046         56,721         36,904         —          (56,818     183,573   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Costs and expenses

                  

Cost of sales

     14,704         6,336         5,801         —           —          (5,737     21,104   

Cemetery

     19,746         10,809         12,145         —           —          —          42,700   

Selling

     22,913         9,675         10,128         —           833        (8,415     35,134   

General and administrative

     12,266         4,774         6,342         —           —          —          23,382   

Corporate overhead

     —           —           —           —           21,657        —          21,657   

Depreciation and amortization

     1,688         679         1,613         2,268         911        —          7,159   

Funeral home

     —           —           —           27,582         —          (501     27,081   

Acquisition related costs, net of recoveries

     —           —           —           —           901        —          901   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total costs and expenses

     71,317         32,273         36,029         29,850         24,302        (14,653     179,118   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating profit

   $ 28,403       $ 14,773       $ 20,692       $ 7,054       $ (24,302   $ (42,165   $ 4,455   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 557,308       $ 306,577       $ 418,119       $ 131,750       $ 35,061      $ —        $ 1,448,815   

Amortization of cemetery property

   $ 3,182       $ 1,943       $ 866       $ —         $ —        $ (470   $ 5,521   

Long lived asset additions

   $ 8,613       $ 1,710       $ 2,735       $ 9,287       $ 763      $ —        $ 23,108   

Goodwill

   $ 6,174       $ —         $ 11,948       $ 29,448       $ —        $ —        $ 47,570   

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

 

     Cemeteries      Funeral                     
     Southeast      Northeast      West      Homes      Corporate     Adjustment     Total  
     (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, net of recoveries

     —           —           —           —           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

   $ 6,174       $ —         $ 11,948       $ 22,105       $ —        $ —        $ 40,227   

 

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

 

     Cemeteries      Funeral                     
     Southeast      Northeast      West      Homes      Corporate     Adjustment     Total  
     (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, net of recoveries

     —           —           —           —           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

   $ 6,174       $ —         $ 11,948       $ 22,105       $ —        $ —        $ 40,227   

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

Fair Value Measurements
Fair Value Measurements
15. FAIR VALUE MEASUREMENTS

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

 

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

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

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

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

 

The following table displays the Company’s assets measured at fair value as of September 30, 2013 and December 31, 2012.

As of September 30, 2013

Merchandise Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 42,789       $ —         $ 42,789   

Fixed maturities:

        

U.S. government and federal agency

     —           —           —     

U.S. state and local government agency

     —           —           —     

Corporate debt securities

     —           9,077         9,077   

Other debt securities

     —           5,449         5,449   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     —           14,526         14,526   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     111,895         —           111,895   

Mutual funds - equity securities - real estate sector

     50,817         —           50,817   

Mutual funds - equity securities - energy sector

     —           —           —     

Mutual funds - equity securities - MLP’s

     34,855         —           34,855   

Mutual funds - equity securities - other

     69,445         —           69,445   

Equity securities:

        

Preferred REIT’s

     —           —           —     

Master limited partnerships

     51,207         —           51,207   

Global equity securities

     27,165         —           27,165   

Other invested assets

     —           4,793         4,793   
  

 

 

    

 

 

    

 

 

 

Total

   $ 388,173       $ 19,319       $ 407,492   
  

 

 

    

 

 

    

 

 

 

Perpetual Care Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 13,971       $ —         $ 13,971   

Fixed maturities:

        

U.S. government and federal agency

     375         —           375   

U.S. state and local government agency

     —           —           —     

Corporate debt securities

     —           24,070         24,070   

Other debt securities

     —           371         371   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     375         24,441         24,816   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     116,426         —           116,426   

Mutual funds - equity securities - real estate sector

     42,328         —           42,328   

Mutual funds - equity securities - energy sector

     14,272         —           14,272   

Mutual funds - equity securities - MLP’s

     42,231         —           42,231   

Mutual funds - equity securities - other

     12,380         —           12,380   

Equity securities:

        

Preferred REIT’s

     —           —           —     

Master limited partnerships

     35,202         —           35,202   

Global equity securities

     849         —           849   

Other invested assets

     —           291         291   
  

 

 

    

 

 

    

 

 

 

Total

   $ 278,034       $ 24,732       $ 302,766   
  

 

 

    

 

 

    

 

 

 

 

As of December 31, 2012

Merchandise Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 27,890       $ —         $ 27,890   

Fixed maturities:

        

U.S. government and federal agency

     —           —           —     

U.S. state and local government agency

     —           —           —     

Corporate debt securities

     —           8,714         8,714   

Other debt securities

     —           4,317         4,317   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     —           13,031         13,031   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     107,921         —           107,921   

Mutual funds - equity securities - real estate sector

     51,986         —           51,986   

Mutual funds - equity securities - energy sector

     5,666         —           5,666   

Mutual funds - equity securities - MLP’s

     29,336         —           29,336   

Mutual funds - equity securities - other

     58,082         —           58,082   

Equity securities:

        

Preferred REIT’s

     563         —           563   

Master limited partnerships

     42,410         —           42,410   

Global equity securities

     24,434         —           24,434   

Other invested assets

     —           7,097         7,097   
  

 

 

    

 

 

    

 

 

 

Total

   $ 348,288       $ 20,128       $ 368,416   
  

 

 

    

 

 

    

 

 

 

Perpetual Care Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 21,419       $ —         $ 21,419   

Fixed maturities:

        

U.S. government and federal agency

     512         —           512   

U.S. state and local government agency

     —           —           —     

Corporate debt securities

     —           23,291         23,291   

Other debt securities

     —           371         371   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     512         23,662         24,174   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     107,188         —           107,188   

Mutual funds - equity securities - real estate sector

     42,365         —           42,365   

Mutual funds - equity securities - energy sector

     13,061         —           13,061   

Mutual funds - equity securities - MLP’s

     34,805         —           34,805   

Mutual funds - equity securities - other

     8,981         —           8,981   

Equity securities:

        

Preferred REIT’s

     486         —           486   

Master limited partnerships

     28,693         —           28,693   

Global equity securities

     726         —           726   

Other invested assets

     —           415         415   
  

 

 

    

 

 

    

 

 

 

Total

   $ 258,236       $ 24,077       $ 282,313   
  

 

 

    

 

 

    

 

 

 

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

There were no level 3 assets.

Nature of Operations, Basis of Presentation And Summary of Significant Accounting Policies (Policies)

Nature of Operations

StoneMor Partners L.P. (“StoneMor”, the “Company” or the “Partnership”) is a provider of funeral and cemetery products and services in the death care industry in the United States. Through its subsidiaries, StoneMor offers a complete range of funeral merchandise and services, along with cemetery property, merchandise and services, both at the time of need and on a pre-need basis. As of September 30, 2013, the Partnership owned 259 and operated 277 cemeteries in 27 states and Puerto Rico and owned and operated 90 funeral homes in 18 states and Puerto Rico.

Basis of Presentation

The unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All interim financial data is unaudited. However, in the opinion of management, the interim financial data as of September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012 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, 2012 condensed consolidated balance sheet data was derived from audited financial statements included in the Company’s 2012 Annual Report on Form 10-K (“2012 Form 10-K”), but does not include all disclosures required by GAAP, which are presented in the Company’s 2012 Form 10-K.

As of September 30, 2013, the Company’s presentation of income tax expense (benefit) within its unaudited condensed consolidated statement of operations has changed. The components of the income tax expense (benefit), “State” and “Federal,” previously presented as two subcaptions, have been collapsed into one caption “Income tax expense (benefit).” This change in the income tax expense (benefit) presentation has no effect on previously reported net income (loss).

Principles of Consolidation

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

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

Use of Estimates

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

Long-Term Accounts Receivable, Net of Allowance (Tables)

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

 

     As of  
     September 30,
2013
    December 31,
2012
 
     (in thousands)  

Customer receivables

   $ 167,536      $ 159,726   

Unearned finance income

     (19,529     (18,377

Allowance for contract cancellations

     (19,760     (17,933
  

 

 

   

 

 

 
     128,247        123,416   

Less: current portion, net of allowance

     52,202        51,895   
  

 

 

   

 

 

 

Long-term portion, net of allowance

   $ 76,045      $ 71,521   
  

 

 

   

 

 

 

Activity in the allowance for contract cancellations is as follows:

 

     For the nine months ended September 30,  
     2013     2012  
     (in thousands)  

Balance - Beginning of period

   $ 17,933      $ 17,582   

Provision for cancellations

     14,791        14,858   

Charge-offs - net

     (12,964     (11,973
  

 

 

   

 

 

 

Balance - End of period

   $ 19,760      $ 20,467   
  

 

 

   

 

 

 
Property and Equipment (Tables)

Major classes of property and equipment follow:

 

     As of  
     September 30,
2013
    December 31,
2012
 
     (in thousands)  

Building and improvements

   $ 90,516      $ 82,056   

Furniture and equipment

     44,491        42,353   
  

 

 

   

 

 

 
     135,007        124,409   

Less: accumulated depreciation

     (49,725     (44,669
  

 

 

   

 

 

 

Property and equipment - net

   $ 85,282      $ 79,740   
  

 

 

   

 

 

 

Cemetery property consisted of the following:

 

     As of  
     September 30,
2013
     December 31,
2012
 
     (in thousands)  

Developed land

   $ 72,752       $ 71,318   

Undeveloped land

     163,919         162,275   

Mausoleum crypts and lawn crypts

     70,053         69,525   

Other land

     9,798         6,862   
  

 

 

    

 

 

 

Total

   $ 316,522       $ 309,980   
  

 

 

    

 

 

 
Merchandise Trusts (Tables)

The cost and market value associated with the assets held in merchandise trusts at September 30, 2013 and December 31, 2012 were as follows:

 

As of September 30, 2013

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

Short-term investments

   $ 42,789       $ —         $ —        $ 42,789   

Fixed maturities:

          

U.S. Government and federal agency

     —           —           —          —     

U.S. State and local government agency

     —           —           —          —     

Corporate debt securities

     9,154         94         (171     9,077   

Other debt securities

     5,465         —           (16     5,449   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     14,619         94         (187     14,526   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

     118,600         906         (7,611     111,895   

Mutual funds - equity securities

     144,877         11,881         (1,641     155,117   

Equity securities

     76,321         3,343         (1,292     78,372   

Other invested assets

     4,912         —           (119     4,793   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total managed investments

   $ 402,118       $ 16,224       $ (10,850   $ 407,492   
  

 

 

    

 

 

    

 

 

   

 

 

 

West Virginia Trust Receivable

     7,863         —           —          7,863   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 409,981       $ 16,224       $ (10,850   $ 415,355   
  

 

 

    

 

 

    

 

 

   

 

 

 

As of December 31, 2012

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

Short-term investments

   $ 27,890       $ —         $ —        $ 27,890   

Fixed maturities:

          

U.S. Government and federal agency

     —           —           —          —     

U.S. State and local government agency

     —           —           —          —     

Corporate debt securities

     8,590         165         (41     8,714   

Other debt securities

     4,320         —           (3     4,317   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     12,910         165         (44     13,031   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

     105,388         3,425         (892     107,921   

Mutual funds - equity securities

     145,538         6,229         (6,697     145,070   

Equity securities

     68,714         3,448         (4,755     67,407   

Other invested assets

     7,376         165         (444     7,097   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total managed investments

   $ 367,816       $ 13,432       $ (12,832   $ 368,416   
  

 

 

    

 

 

    

 

 

   

 

 

 

West Virginia Trust Receivable

     7,557         —           —          7,557   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 375,373       $ 13,432       $ (12,832   $ 375,973   
  

 

 

    

 

 

    

 

 

   

 

 

 

The contractual maturities of debt securities as of September 30, 2013 were as follows:

 

As of September 30, 2013

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

U.S. Government and federal agency

   $ —         $ —         $ —         $ —     

U.S. State and local government agency

     —           —           —           —     

Corporate debt securities

     —           3,867         5,210         —     

Other debt securities

     2,150         3,299         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

   $ 2,150       $ 7,166       $ 5,210       $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 

An aging of unrealized losses on the Company’s investments in fixed maturities and equity securities at September 30, 2013 and December 31, 2012 is presented below:

 

     Less than 12 months      12 Months or more      Total  

As of September 30, 2013

   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

     4,381         135         701         36         5,082         171   

Other debt securities

     3,753         12         1,246         4         4,999         16   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     8,134         147         1,947         40         10,081         187   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securites

     91,057         6,631         6,950         980         98,007         7,611   

Mutual funds - equity securites

     31,352         1,257         4,196         384         35,548         1,641   

Equity securities

     22,605         1,092         3,303         200         25,908         1,292   

Other invested assets

     1,921         119         —           —           1,921         119   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 155,069       $ 9,246       $ 16,396       $ 1,604       $ 171,465       $ 10,850   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     Less than 12 months      12 Months or more      Total  

As of December 31, 2012

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

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

     2,140         20         297         21         2,437         41   

Other debt securities

     4,317         3         —           —           4,317         3   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     6,457         23         297         21         6,754         44   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securites

     6,388         463         4,198         429         10,586         892   

Mutual funds - equity securites

     48,255         5,500         19,655         1,197         67,910         6,697   

Equity securities

     17,932         1,527         15,538         3,228         33,470         4,755   

Other invested assets

     2,558         444         —           —           2,558         444   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 81,590       $ 7,957       $ 39,688       $ 4,875       $ 121,278       $ 12,832   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

A reconciliation of the Company’s merchandise trust activities for the nine months ended September 30, 2013 is presented below:

 

Fair

Value at

12/31/2012

   Contributions      Distributions     Interest/
Dividends
     Capital
Gain
Distributions
     Realized
Gain/
Loss
     Taxes     Fees     Unrealized
Change in
Fair Value
     Fair
Value at
9/30/2013
 
(in thousands)  
$375,973      52,906         (39,081     12,198         —           13,581         (2,787     (2,209     4,774       $ 415,355   

The cost and market value associated with the assets held in perpetual care trusts at September 30, 2013 and December 31, 2012 were as follows:

 

            Gross      Gross        
            Unrealized      Unrealized     Fair  

As of September 30, 2013

   Cost      Gains      Losses     Value  
     (in thousands)  

Short-term investments

   $ 13,971       $ —         $ —        $ 13,971   

Fixed maturities:

          

U.S. Government and federal agency

     302         73         —          375   

U.S. State and local government agency

     —           —           —          —     

Corporate debt securities

     24,258         249         (437     24,070   

Other debt securities

     371         —           —          371   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     24,931         322         (437     24,816   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

     120,560         530         (4,664     116,426   

Mutual funds - equity securities

     96,743         14,468         —          111,211   

Equity securities

     26,309         9,764         (22     36,051   

Other invested assets

     99         192         —          291   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 282,613       $ 25,276       $ (5,123   $ 302,766   
  

 

 

    

 

 

    

 

 

   

 

 

 

As of December 31, 2012

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

Short-term investments

   $ 21,419       $ —         $ —        $ 21,419   

Fixed maturities:

          

U.S. Government and federal agency

     408         104         —          512   

U.S. State and local government agency

     —           —           —          —     

Corporate debt securities

     22,690         702         (101     23,291   

Other debt securities

     371         —           —          371   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

     23,469         806         (101     24,174   
  

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

     103,909         3,429         (150     107,188   

Mutual funds - equity securities

     94,239         5,222         (249     99,212   

Equity securities

     23,797         6,563         (455     29,905   

Other invested assets

     113         302         —          415   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 266,946       $ 16,322       $ (955   $ 282,313   
  

 

 

    

 

 

    

 

 

   

 

 

 

The contractual maturities of debt securities as of September 30, 2013 were as follows:

 

     Less than      1 year through      6 years through      More than  

As of September 30, 2013

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

U.S. Government and federal agency

   $ 254       $ 121       $ —         $ —     

U.S. State and local government agency

     —           —           —           —     

Corporate debt securities

     153         10,162         13,755         —     

Other debt securities

     371         —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

   $ 778       $ 10,283       $ 13,755       $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 

An aging of unrealized losses on the Company’s investments in fixed maturities and equity securities at September 30, 2013 and December 31, 2012 held in perpetual care trusts is presented below:

 

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

As of September 30, 2013

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

     11,142         342         1,910         95         13,052         437   

Other debt securities

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     11,142         342         1,910         95         13,052         437   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securites

     97,340         3,869         15,542         795         112,882         4,664   

Mutual funds - equity securites

     —           —           —           —           —           —     

Equity securities

     1,011         22         —           —           1,011         22   

Other invested assets

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 109,493       $ 4,233       $ 17,452       $ 890       $ 126,945       $ 5,123   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

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

As of December 31, 2012

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

U.S. Government and federal agency

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

U.S. State and local government agency

     —           —           —           —           —           —     

Corporate debt securities

     4,630         48         711         53         5,341         101   

Other debt securities

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     4,630         48         711         53         5,341         101   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securites

     859         35         870         115         1,729         150   

Mutual funds - equity securites

     34,805         249         —           —           34,805         249   

Equity securities

     4,269         238         545         217         4,814         455   

Other invested assets

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 44,563       $ 570       $ 2,126       $ 385       $ 46,689       $ 955   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

A reconciliation of the Company’s perpetual care trust activities for the nine months ended September 30, 2013 is presented below:

 

Fair                        Capital      Realized                  Unrealized      Fair  
Value at                 Interest/      Gain      Gain/                  Change in      Value at  

12/31/2012

   Contributions      Distributions     Dividends      Distributions      Loss      Taxes     Fees     Fair Value      9/30/2013  
(in thousands)  
$282,313      12,565         (9,428     11,060         —           3,773         (647     (1,656     4,786       $ 302,766   
Goodwill and Intangible Assets (Tables)

A rollforward of goodwill by reportable segment is as follows:

 

     Cemeteries      Funeral         
     Southeast      Northeast      West      Homes      Total  
     (in thousands)  

Balance as of December 31, 2012

   $ 6,174       $ —         $ 11,948       $ 24,270       $ 42,392   

Goodwill acquired from acquisitions during the nine months ended September 30, 2013

     —           —           —           5,178         5,178   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of September 30, 2013

   $ 6,174       $ —         $ 11,948       $ 29,448       $ 47,570   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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

 

     As of      As of  
     September 30, 2013      December 31, 2012  
     Gross Carrying      Accumulated     Net Intangible      Gross Carrying      Accumulated     Net Intangible  
     Amount      Amortization     Asset      Amount      Amortization     Asset  
     (in thousands)  

Amortized intangible assets:

               

Underlying contract value

   $ 6,239       $ (624   $ 5,615       $ 6,239       $ (555   $ 5,684   

Non-compete agreements

     7,950         (3,668     4,282         6,023         (2,553     3,470   

Other intangible assets

     269         (93     176         269         (81     188   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total intangible assets

   $ 14,458       $ (4,385   $ 10,073       $ 12,531       $ (3,189   $ 9,342   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 
Long-Term Debt (Tables)

The Company had the following outstanding debt:

 

     As of  
     September 30,      December 31,  
     2013      2012  
     (in thousands)  

7.875% Senior Notes, due 2021

   $ 175,000       $ —     

10.25% Senior Notes, due 2017

     —           150,000   

Revolving Credit Facility, due January 2017

     99,502         101,700   

Notes payable - acquisition debt

     4,159         1,465   

Notes payable - acquisition non-competes

     4,364         3,830   

Insurance and vehicle financing

     2,552         1,298   
  

 

 

    

 

 

 

Total

     285,577         258,293   

Less current portion

     6,550         2,175   

Less unamortized bond and note payable discounts

     4,485         3,344   
  

 

 

    

 

 

 

Long-term portion

   $ 274,542       $ 252,774   
  

 

 

    

 

 

 

Measurement Period Ending

   Maximum Consolidated Leverage Ratio

June 30, 2013 through December 31, 2013

   4.000 to 1.0

March 31, 2014

   3.875 to 1.0

June 30, 2014 and thereafter

   3.750 to 1.0
Deferred Cemetery Revenues, Net (Tables)
Deferred Cemetery Revenues, Net

At September 30, 2013 and December 31, 2012, deferred cemetery revenues, net, consisted of the following:

 

     As of  
     September 30,     December 31,  
     2013     2012  
     (in thousands)  

Deferred cemetery revenue

   $ 389,776      $ 346,621   

Deferred merchandise trust revenue

     82,002        65,728   

Deferred merchandise trust unrealized gains

     5,374        600   

Deferred pre-acquisition margin

     133,583        132,221   

Deferred cost of goods sold

     (52,762     (47,309
  

 

 

   

 

 

 

Deferred cemetery revenues, net

   $ 557,973      $ 497,861   
  

 

 

   

 

 

 

Deferred selling and obtaining costs

   $ 85,201      $ 76,317   
Commitments and Contingencies (Tables)
Operating Leases Future Payments

At September 30, 2013, operating leases will result in future payments in the following approximate amounts from January 1, 2014 and beyond:

 

     (in thousands)  

2014

   $ 1,608   

2015

     1,048   

2016

     936   

2017

     891   

2018

     875   

Thereafter

     1,927   
  

 

 

 

Total

   $ 7,285   
  

 

 

 
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, 2013 and 2012 are summarized in the table below:

 

     Three months ended      Nine months ended  
     September 30,      September 30,  
     2013      2012      2013      2012  
     (in thousands)      (in thousands)  

Unit appreciation rights

   $ 137       $ 133       $ 416       $ 381   

Restricted phantom units

     211         83         622         244   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total unit-based compensation expense

   $ 348       $ 216       $ 1,038       $ 625   
  

 

 

    

 

 

    

 

 

    

 

 

 
Acquisitions (Tables)

If the acquisitions from 2013 and 2012 had been consummated on January 1, 2012, on a pro forma basis, for the three and nine months ended September 30, 2013 and 2012, consolidated revenues, consolidated net income (loss) and net income (loss) per limited partner unit (basic and diluted) would have been as follows:

 

     Three months ended      Nine months ended  
     September 30,      September 30,  
     2013     2012      2013     2012  
     (in thousands)      (in thousands)  

Revenue

   $ 61,585      $ 63,891       $ 184,497      $ 191,463   

Net income (loss)

     (4,037     1,000         (18,105     2,848   

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

   $ (.19   $ .05       $ (.85   $ .14   

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

 

Lease Years 1-5

   None

Lease Years 6-20

   $1,000,000 per Lease Year

Lease Years 21-25

   $1,200,000 per Lease Year

Lease Years 26- 35

   $1,500,000 per Lease Year

Lease Years 36-60

   None

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

 

     Final  
     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 and the resulting gain on bargain purchase. These amounts may be retrospectively adjusted as additional information is received.

 

     Preliminary  
     Assessment  
     (in thousands)  

Assets:

  

Accounts receivable

   $ 525   

Cemetery property

     3,900   

Property and equipment

     1,047   

Merchandise trusts, restricted, at fair value

     5,461   

Perpetual care trusts, restricted, at fair value

     5,888   
  

 

 

 

Total assets

     16,821   
  

 

 

 

Liabilities:

  

Merchandise liabilities

     1,252   

Deferred margin

     1,356   

Perpetual care trust corpus

     5,888   

Other liabilities

     94   

Deferred tax liability

     701   
  

 

 

 

Total liabilities

     9,291   
  

 

 

 

Fair value of net assets acquired

     7,530   
  

 

 

 

Consideration paid

     5,000   
  

 

 

 

Gain on bargain purchase

   $ 2,530   
  

 

 

 

The table below reflects the Company’s final 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.

 

     Final  
     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 resulting goodwill is recorded in the Company’s Funeral Homes operating segment.

 

     Final  
     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   
  

 

 

 

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:

  

Accounts receivable

   $ 995   

Property and equipment

     8,315   

Merchandise trusts, restricted, at fair value

     4,853   

Non-compete agreements

     1,927   
  

 

 

 

Total assets

     16,090   
  

 

 

 

Liabilities:

  

Deferred margin

     2,419   

Merchandise liabilities

     2,233   
  

 

 

 

Total liabilities

     4,652   
  

 

 

 

Fair value of net assets acquired

     11,438   
  

 

 

 

Consideration paid - cash

     9,100   

Consideration paid - units

     3,592   

Fair value of note payable

     3,000   

Fair value of debt assumed for non-compete agreements

     924   
  

 

 

 

Total consideration paid

     16,616   
  

 

 

 

Goodwill from purchase

   $ 5,178   
  

 

 

 

The table below reflects the Company’s final assessment of the fair value of net assets acquired. The resulting goodwill is recorded in the Company’s Funeral Homes operating segment.

 

     Final  
     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 final 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.

 

     Final  
     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

     1,777   
  

 

 

 

Total assets

     28,984   
  

 

 

 

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

     19,548   
  

 

 

 

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

   $ 5,182   
  

 

 

 
Segment Information (Tables)
Segment Information

Segment information is as follows:

As of and for the three months ended September 30, 2013:

 

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

Revenues

                  

Sales

   $ 24,304       $ 8,963       $ 10,440       $ —         $ —        $ (11,230   $ 32,477   

Service and other

     9,200         7,078         8,494         —           —          (6,083     18,689   

Funeral home

     —           —           —           12,094         —          (1,721     10,373   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

     33,504         16,041         18,934         12,094         —          (19,034     61,539   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Costs and expenses

                  

Cost of sales

     4,929         1,811         2,202         —           —          (1,840     7,102   

Cemetery

     6,787         3,691         4,029         —           —          —          14,507   

Selling

     7,769         3,081         3,367         —           —          (2,525     11,692   

General and administrative

     4,064         1,582         2,256         —           —          —          7,902   

Corporate overhead

     —           —           —           —           7,997        —          7,997   

Depreciation and amortization

     575         224         548         859         172        —          2,378   

Funeral home

     —           —           —           9,161         —          (180     8,981   

Acquisition related costs, net of recoveries

     —           —           —           —           243        —          243   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total costs and expenses

     24,124         10,389         12,402         10,020         8,412        (4,545     60,802   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating profit

   $ 9,380       $ 5,652       $ 6,532       $ 2,074       $ (8,412   $ (14,489   $ 737   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 557,308       $ 306,577       $ 418,119       $ 131,750       $ 35,061      $ —        $ 1,448,815   

Amortization of cemetery property

   $ 1,152       $ 585       $ 305       $ —         $ —        $ (132   $ 1,910   

Long lived asset additions

   $ 6,287       $ 451       $ 1,477       $ 362       $ 15      $ —        $ 8,592   

Goodwill

   $ 6,174       $ —         $ 11,948       $ 29,448       $ —        $ —        $ 47,570   

 

As of and for the nine months ended September 30, 2013:

 

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

Revenues

                  

Sales

   $ 70,941       $ 27,664       $ 32,483       $ —         $ —        $ (36,332   $ 94,756   

Service and other

     28,779         19,382         24,238         —           —          (16,049     56,350   

Funeral home

     —           —           —           36,904         —          (4,437     32,467   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total revenues

     99,720         47,046         56,721         36,904         —          (56,818     183,573   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Costs and expenses

                  

Cost of sales

     14,704         6,336         5,801         —           —          (5,737     21,104   

Cemetery

     19,746         10,809         12,145         —           —          —          42,700   

Selling

     22,913         9,675         10,128         —           833        (8,415     35,134   

General and administrative

     12,266         4,774         6,342         —           —          —          23,382   

Corporate overhead

     —           —           —           —           21,657        —          21,657   

Depreciation and amortization

     1,688         679         1,613         2,268         911        —          7,159   

Funeral home

     —           —           —           27,582         —          (501     27,081   

Acquisition related costs, net of recoveries

     —           —           —           —           901        —          901   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total costs and expenses

     71,317         32,273         36,029         29,850         24,302        (14,653     179,118   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating profit

   $ 28,403       $ 14,773       $ 20,692       $ 7,054       $ (24,302   $ (42,165   $ 4,455   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

   $ 557,308       $ 306,577       $ 418,119       $ 131,750       $ 35,061      $ —        $ 1,448,815   

Amortization of cemetery property

   $ 3,182       $ 1,943       $ 866       $ —         $ —        $ (470   $ 5,521   

Long lived asset additions

   $ 8,613       $ 1,710       $ 2,735       $ 9,287       $ 763      $ —        $ 23,108   

Goodwill

   $ 6,174       $ —         $ 11,948       $ 29,448       $ —        $ —        $ 47,570   

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

 

     Cemeteries      Funeral                     
     Southeast      Northeast      West      Homes      Corporate     Adjustment     Total  
     (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, net of recoveries

     —           —           —           —           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

   $ 6,174       $ —         $ 11,948       $ 22,105       $ —        $ —        $ 40,227   

 

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

 

     Cemeteries      Funeral                     
     Southeast      Northeast      West      Homes      Corporate     Adjustment     Total  
     (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, net of recoveries

     —           —           —           —           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

   $ 6,174       $ —         $ 11,948       $ 22,105       $ —        $ —        $ 40,227   
Fair Value Measurements (Tables)
Assets and Liabilities Measured at Fair Value

The following table displays the Company’s assets measured at fair value as of September 30, 2013 and December 31, 2012.

As of September 30, 2013

Merchandise Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 42,789       $ —         $ 42,789   

Fixed maturities:

        

U.S. government and federal agency

     —           —           —     

U.S. state and local government agency

     —           —           —     

Corporate debt securities

     —           9,077         9,077   

Other debt securities

     —           5,449         5,449   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     —           14,526         14,526   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     111,895         —           111,895   

Mutual funds - equity securities - real estate sector

     50,817         —           50,817   

Mutual funds - equity securities - energy sector

     —           —           —     

Mutual funds - equity securities - MLP’s

     34,855         —           34,855   

Mutual funds - equity securities - other

     69,445         —           69,445   

Equity securities:

        

Preferred REIT’s

     —           —           —     

Master limited partnerships

     51,207         —           51,207   

Global equity securities

     27,165         —           27,165   

Other invested assets

     —           4,793         4,793   
  

 

 

    

 

 

    

 

 

 

Total

   $ 388,173       $ 19,319       $ 407,492   
  

 

 

    

 

 

    

 

 

 

Perpetual Care Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 13,971       $ —         $ 13,971   

Fixed maturities:

        

U.S. government and federal agency

     375         —           375   

U.S. state and local government agency

     —           —           —     

Corporate debt securities

     —           24,070         24,070   

Other debt securities

     —           371         371   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     375         24,441         24,816   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     116,426         —           116,426   

Mutual funds - equity securities - real estate sector

     42,328         —           42,328   

Mutual funds - equity securities - energy sector

     14,272         —           14,272   

Mutual funds - equity securities - MLP’s

     42,231         —           42,231   

Mutual funds - equity securities - other

     12,380         —           12,380   

Equity securities:

        

Preferred REIT’s

     —           —           —     

Master limited partnerships

     35,202         —           35,202   

Global equity securities

     849         —           849   

Other invested assets

     —           291         291   
  

 

 

    

 

 

    

 

 

 

Total

   $ 278,034       $ 24,732       $ 302,766   
  

 

 

    

 

 

    

 

 

 

 

As of December 31, 2012

Merchandise Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 27,890       $ —         $ 27,890   

Fixed maturities:

        

U.S. government and federal agency

     —           —           —     

U.S. state and local government agency

     —           —           —     

Corporate debt securities

     —           8,714         8,714   

Other debt securities

     —           4,317         4,317   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     —           13,031         13,031   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     107,921         —           107,921   

Mutual funds - equity securities - real estate sector

     51,986         —           51,986   

Mutual funds - equity securities - energy sector

     5,666         —           5,666   

Mutual funds - equity securities - MLP’s

     29,336         —           29,336   

Mutual funds - equity securities - other

     58,082         —           58,082   

Equity securities:

        

Preferred REIT’s

     563         —           563   

Master limited partnerships

     42,410         —           42,410   

Global equity securities

     24,434         —           24,434   

Other invested assets

     —           7,097         7,097   
  

 

 

    

 

 

    

 

 

 

Total

   $ 348,288       $ 20,128       $ 368,416   
  

 

 

    

 

 

    

 

 

 

Perpetual Care Trust

 

     Level 1      Level 2      Total  
     (in thousands)  

Assets

        

Short-term investments

   $ 21,419       $ —         $ 21,419   

Fixed maturities:

        

U.S. government and federal agency

     512         —           512   

U.S. state and local government agency

     —           —           —     

Corporate debt securities

     —           23,291         23,291   

Other debt securities

     —           371         371   
  

 

 

    

 

 

    

 

 

 

Total fixed maturity investments

     512         23,662         24,174   
  

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     107,188         —           107,188   

Mutual funds - equity securities - real estate sector

     42,365         —           42,365   

Mutual funds - equity securities - energy sector

     13,061         —           13,061   

Mutual funds - equity securities - MLP’s

     34,805         —           34,805   

Mutual funds - equity securities - other

     8,981         —           8,981   

Equity securities:

        

Preferred REIT’s

     486         —           486   

Master limited partnerships

     28,693         —           28,693   

Global equity securities

     726         —           726   

Other invested assets

     —           415         415   
  

 

 

    

 

 

    

 

 

 

Total

   $ 258,236       $ 24,077       $ 282,313   
  

 

 

    

 

 

    

 

 

 
Nature of Operations Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail)
Sep. 30, 2013
State
Property
US and Puerto Rico |
Cemetery
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
277 
Number of States
27 
US and Puerto Rico |
Funeral Home
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
90 
Number of States
18 
Wholly Owned Properties |
US and Puerto Rico |
Cemetery
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
259 
Managed Properties |
Cemetery property
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
18 
Managed Properties |
Consolidated Properties |
Cemetery property
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
16 
Managed Properties |
Unconsolidated Properties |
Cemetery property
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Number of operating locations
Long-Term Accounts Receivable Net (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Customer receivables
$ 167,536 
$ 159,726 
Unearned finance income
(19,529)
(18,377)
Allowance for contract cancellations
(19,760)
(17,933)
Accounts Receivable, Net, Total
128,247 
123,416 
Less: current portion, net of allowance
52,202 
51,895 
Long-term portion, net of allowance
$ 76,045 
$ 71,521 
Activity in Allowance for Contract Cancellations (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2013
Contract Cancellations
Sep. 30, 2012
Contract Cancellations
Valuation and Qualifying Accounts Disclosure [Line Items]
 
 
 
 
Balance - Beginning of period
$ 19,760 
$ 17,933 
$ 17,933 
$ 17,582 
Provision for cancellations
 
 
14,791 
14,858 
Charge-offs - net
 
 
(12,964)
(11,973)
Balance - End of period
$ 19,760 
$ 17,933 
$ 19,760 
$ 20,467 
Cemetery Property (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
$ 316,522 
$ 309,980 
Developed land
 
 
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
72,752 
71,318 
Undeveloped land
 
 
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
163,919 
162,275 
Mausoleum crypts and lawn crypts
 
 
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
70,053 
69,525 
Other Land
 
 
Property, Plant, and Equipment Disclosure [Line Items]
 
 
Cemetery property
$ 9,798 
$ 6,862 
Major Classes of Property and Equipment (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Property, Plant and Equipment [Line Items]
 
 
Building and improvements
$ 90,516 
$ 82,056 
Furniture and equipment
44,491 
42,353 
Property, Plant and Equipment, Gross, Total
135,007 
124,409 
Less: accumulated depreciation
(49,725)
(44,669)
Property and equipment - net
$ 85,282 
$ 79,740 
Property and Equipment - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Property, Plant, and Equipment Disclosure [Line Items]
 
 
 
 
Depreciation expense
$ 2.0 
$ 1.7 
$ 5.6 
$ 5.2 
Merchandise Trusts - Additional Information (Detail) (Variable Interest Entity, Primary Beneficiary, Merchandise Trusts, USD $)
3 Months Ended 9 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2013
West Virginia Trust Receivable
Dec. 31, 2012
West Virginia Trust Receivable
Sep. 30, 2013
Determined for Seven securities
Other Than Temporarily Impaired Securities
Property
Sep. 30, 2013
Determined for Three securities
Other Than Temporarily Impaired Securities
Property
Sep. 30, 2012
Determined for Six securities
Other Than Temporarily Impaired Securities
Property
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
 
 
 
 
Trust assets, fair value
 
$ 415,355,000 
$ 375,973,000 
$ 7,863,000 
$ 7,557,000 
$ 1,600,000 
$ 900,000 
$ 800,000 
Net deposits into the trust
 
13,800,000 
 
 
 
 
 
 
Purchases of securities available for sale included in trust investments
 
399,000,000 
 
 
 
 
 
 
Sales of securities available for sale included in trust investments
 
411,000,000 
 
 
 
 
 
 
Contributions of assets
 
10,300,000 
 
 
 
 
 
 
Number of securities resulting impairment
 
 
 
 
 
Trust assets, cost
 
409,981,000 
375,373,000 
7,863,000 
7,557,000 
2,600,000 
1,200,000 
1,600,000 
Other than temporary impairments loss
$ 0 
 
 
 
 
$ 1,000,000 
$ 300,000 
$ 800,000 
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, 2013
Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
$ 409,981 
$ 375,373 
Gross Unrealized Gains
16,224 
13,432 
Gross Unrealized Losses
(10,850)
(12,832)
Fair Value
415,355 
375,973 
Short-term investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
42,789 
27,890 
Gross Unrealized Gains
   
   
Gross Unrealized Losses
   
   
Fair Value
42,789 
27,890 
Fixed maturities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
14,619 
12,910 
Gross Unrealized Gains
94 
165 
Gross Unrealized Losses
(187)
(44)
Fair Value
14,526 
13,031 
Fixed maturities |
U.S. Government and federal agency
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
   
   
Gross Unrealized Gains
   
   
Gross Unrealized Losses
   
   
Fair Value
   
   
Fixed maturities |
U.S. State and local government agency
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
   
   
Gross Unrealized Gains
   
   
Gross Unrealized Losses
   
   
Fair Value
   
   
Fixed maturities |
Corporate debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
9,154 
8,590 
Gross Unrealized Gains
94 
165 
Gross Unrealized Losses
(171)
(41)
Fair Value
9,077 
8,714 
Fixed maturities |
Other debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
5,465 
4,320 
Gross Unrealized Gains
   
   
Gross Unrealized Losses
(16)
(3)
Fair Value
5,449 
4,317 
Mutual funds - debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
118,600 
105,388 
Gross Unrealized Gains
906 
3,425 
Gross Unrealized Losses
(7,611)
(892)
Fair Value
111,895 
107,921 
Mutual funds - equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
144,877 
145,538 
Gross Unrealized Gains
11,881 
6,229 
Gross Unrealized Losses
(1,641)
(6,697)
Fair Value
155,117 
145,070 
Equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
76,321 
68,714 
Gross Unrealized Gains
3,343 
3,448 
Gross Unrealized Losses
(1,292)
(4,755)
Fair Value
78,372 
67,407 
Other invested assets
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
4,912 
7,376 
Gross Unrealized Gains
   
165 
Gross Unrealized Losses
(119)
(444)
Fair Value
4,793 
7,097 
Total managed investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
402,118 
367,816 
Gross Unrealized Gains
16,224 
13,432 
Gross Unrealized Losses
(10,850)
(12,832)
Fair Value
407,492 
368,416 
West Virginia Trust Receivable
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
7,863 
7,557 
Gross Unrealized Gains
   
   
Gross Unrealized Losses
   
   
Fair Value
$ 7,863 
$ 7,557 
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, 2013
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
$ 2,150 
1 year through 5 years
7,166 
6 years through 10 years
5,210 
More than 10 years
   
U.S. Government and federal agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
   
1 year through 5 years
   
6 years through 10 years
   
More than 10 years
   
U.S. State and local government agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
   
1 year through 5 years
   
6 years through 10 years
   
More than 10 years
   
Corporate debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
   
1 year through 5 years
3,867 
6 years through 10 years
5,210 
More than 10 years
   
Other debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
2,150 
1 year through 5 years
3,299 
6 years through 10 years
   
More than 10 years
   
Aging of Unrealized Losses on Investments in Fixed Maturities and Equity Securities Held in Merchandise Trusts (Detail) (Variable Interest Entity, Primary Beneficiary, Merchandise Trusts, USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
$ 155,069 
$ 81,590 
Less than 12 months Unrealized Losses
9,246 
7,957 
12 Months or more Fair Value
16,396 
39,688 
12 Months or more Unrealized Losses
1,604 
4,875 
Total Fair Value
171,465 
121,278 
Total Unrealized Losses
10,850 
12,832 
Fixed maturities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
8,134 
6,457 
Less than 12 months Unrealized Losses
147 
23 
12 Months or more Fair Value
1,947 
297 
12 Months or more Unrealized Losses
40 
21 
Total Fair Value
10,081 
6,754 
Total Unrealized Losses
187 
44 
Fixed maturities |
U.S. Government and federal agency
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
   
   
Less than 12 months Unrealized Losses
   
   
12 Months or more Fair Value
   
   
12 Months or more Unrealized Losses
   
   
Total Fair Value
   
   
Total Unrealized Losses
   
   
Fixed maturities |
U.S. State and local government agency
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
   
   
Less than 12 months Unrealized Losses
   
   
12 Months or more Fair Value
   
   
12 Months or more Unrealized Losses
   
   
Total Fair Value
   
   
Total Unrealized Losses
   
   
Fixed maturities |
Corporate debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
4,381 
2,140 
Less than 12 months Unrealized Losses
135 
20 
12 Months or more Fair Value
701 
297 
12 Months or more Unrealized Losses
36 
21 
Total Fair Value
5,082 
2,437 
Total Unrealized Losses
171 
41 
Fixed maturities |
Other debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
3,753 
4,317 
Less than 12 months Unrealized Losses
12 
12 Months or more Fair Value
1,246 
   
12 Months or more Unrealized Losses
   
Total Fair Value
4,999 
4,317 
Total Unrealized Losses
16 
Mutual funds - debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
91,057 
6,388 
Less than 12 months Unrealized Losses
6,631 
463 
12 Months or more Fair Value
6,950 
4,198 
12 Months or more Unrealized Losses
980 
429 
Total Fair Value
98,007 
10,586 
Total Unrealized Losses
7,611 
892 
Mutual funds - equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
31,352 
48,255 
Less than 12 months Unrealized Losses
1,257 
5,500 
12 Months or more Fair Value
4,196 
19,655 
12 Months or more Unrealized Losses
384 
1,197 
Total Fair Value
35,548 
67,910 
Total Unrealized Losses
1,641 
6,697 
Equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
22,605 
17,932 
Less than 12 months Unrealized Losses
1,092 
1,527 
12 Months or more Fair Value
3,303 
15,538 
12 Months or more Unrealized Losses
200 
3,228 
Total Fair Value
25,908 
33,470 
Total Unrealized Losses
1,292 
4,755 
Other invested assets
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
1,921 
2,558 
Less than 12 months Unrealized Losses
119 
444 
12 Months or more Fair Value
   
   
12 Months or more Unrealized Losses
   
   
Total Fair Value
1,921 
2,558 
Total Unrealized Losses
$ 119 
$ 444 
Reconciliation of Merchandise Trust Activities (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2013
Variable Interest Entity, Primary Beneficiary
Merchandise Trusts
Schedule of Available-for-sale Securities [Line Items]
 
 
 
Fair Value
$ 415,355 
$ 375,973 
$ 375,973 
Contributions
 
 
52,906 
Distributions
 
 
(39,081)
Interest/ Dividends
 
 
12,198 
Capital Gain Distributions
 
 
   
Realized Gain/ Loss
 
 
13,581 
Taxes
 
 
(2,787)
Fees
 
 
(2,209)
Unrealized Change in Fair Value
 
 
4,774 
Fair Value
$ 415,355 
$ 375,973 
$ 415,355 
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, 2013
Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
$ 282,613 
$ 266,946 
Gross Unrealized Gains
25,276 
16,322 
Gross Unrealized Losses
(5,123)
(955)
Fair Value
302,766 
282,313 
Short-term investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
13,971 
21,419 
Gross Unrealized Gains
   
   
Gross Unrealized Losses
   
   
Fair Value
13,971 
21,419 
Fixed maturities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
24,931 
23,469 
Gross Unrealized Gains
322 
806 
Gross Unrealized Losses
(437)
(101)
Fair Value
24,816 
24,174 
Fixed maturities |
U.S. Government and federal agency
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
302 
408 
Gross Unrealized Gains
73 
104 
Gross Unrealized Losses
   
   
Fair Value
375 
512 
Fixed maturities |
U.S. State and local government agency
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
   
   
Gross Unrealized Gains
   
   
Gross Unrealized Losses
   
   
Fair Value
   
   
Fixed maturities |
Corporate debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
24,258 
22,690 
Gross Unrealized Gains
249 
702 
Gross Unrealized Losses
(437)
(101)
Fair Value
24,070 
23,291 
Fixed maturities |
Other debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
371 
371 
Gross Unrealized Gains
   
   
Gross Unrealized Losses
   
   
Fair Value
371 
371 
Mutual funds - debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
120,560 
103,909 
Gross Unrealized Gains
530 
3,429 
Gross Unrealized Losses
(4,664)
(150)
Fair Value
116,426 
107,188 
Mutual funds - equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
96,743 
94,239 
Gross Unrealized Gains
14,468 
5,222 
Gross Unrealized Losses
   
(249)
Fair Value
111,211 
99,212 
Equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
26,309 
23,797 
Gross Unrealized Gains
9,764 
6,563 
Gross Unrealized Losses
(22)
(455)
Fair Value
36,051 
29,905 
Other invested assets
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
99 
113 
Gross Unrealized Gains
192 
302 
Gross Unrealized Losses
   
   
Fair Value
$ 291 
$ 415 
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, 2013
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
$ 778 
1 year through 5 years
10,283 
6 years through 10 years
13,755 
More than 10 years
   
U.S. Government and federal agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
254 
1 year through 5 years
121 
6 years through 10 years
   
More than 10 years
   
U.S. State and local government agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
   
1 year through 5 years
   
6 years through 10 years
   
More than 10 years
   
Corporate debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
153 
1 year through 5 years
10,162 
6 years through 10 years
13,755 
More than 10 years
   
Other debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
371 
1 year through 5 years
   
6 years through 10 years
   
More than 10 years
   
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, 2013
Dec. 31, 2012
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
$ 109,493 
$ 44,563 
Less than 12 months Unrealized Losses
4,233 
570 
12 Months or more Fair Value
17,452 
2,126 
12 Months or more Unrealized Losses
890 
385 
Total Fair Value
126,945 
46,689 
Total Unrealized Losses
5,123 
955 
Fixed maturities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
11,142 
4,630 
Less than 12 months Unrealized Losses
342 
48 
12 Months or more Fair Value
1,910 
711 
12 Months or more Unrealized Losses
95 
53 
Total Fair Value
13,052 
5,341 
Total Unrealized Losses
437 
101 
Fixed maturities |
U.S. Government and federal agency
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
   
   
Less than 12 months Unrealized Losses
   
   
12 Months or more Fair Value
   
   
12 Months or more Unrealized Losses
   
   
Total Fair Value
   
   
Total Unrealized Losses
   
   
Fixed maturities |
U.S. State and local government agency
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
   
   
Less than 12 months Unrealized Losses
   
   
12 Months or more Fair Value
   
   
12 Months or more Unrealized Losses
   
   
Total Fair Value
   
   
Total Unrealized Losses
   
   
Fixed maturities |
Corporate debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
11,142 
4,630 
Less than 12 months Unrealized Losses
342 
48 
12 Months or more Fair Value
1,910 
711 
12 Months or more Unrealized Losses
95 
53 
Total Fair Value
13,052 
5,341 
Total Unrealized Losses
437 
101 
Fixed maturities |
Other debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
   
   
Less than 12 months Unrealized Losses
   
   
12 Months or more Fair Value
   
   
12 Months or more Unrealized Losses
   
   
Total Fair Value
   
   
Total Unrealized Losses
   
   
Mutual funds - debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
97,340 
859 
Less than 12 months Unrealized Losses
3,869 
35 
12 Months or more Fair Value
15,542 
870 
12 Months or more Unrealized Losses
795 
115 
Total Fair Value
112,882 
1,729 
Total Unrealized Losses
4,664 
150 
Mutual funds - equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
   
34,805 
Less than 12 months Unrealized Losses
   
249 
12 Months or more Fair Value
   
 
12 Months or more Unrealized Losses
   
 
Total Fair Value
   
34,805 
Total Unrealized Losses
   
249 
Equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
1,011 
4,269 
Less than 12 months Unrealized Losses
22 
238 
12 Months or more Fair Value
   
545 
12 Months or more Unrealized Losses
   
217 
Total Fair Value
1,011 
4,814 
Total Unrealized Losses
22 
455 
Other invested assets
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
   
   
Less than 12 months Unrealized Losses
   
   
12 Months or more Fair Value
   
   
12 Months or more Unrealized Losses
   
   
Total Fair Value
   
   
Total Unrealized Losses
   
   
Reconciliation of Perpetual Care Trust Activities (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2013
Variable Interest Entity, Primary Beneficiary
Perpetual care trusts
Schedule of Available-for-sale Securities [Line Items]
 
 
 
Fair Value
$ 302,766 
$ 282,313 
$ 282,313 
Contributions
 
 
12,565 
Distributions
 
 
(9,428)
Interest/ Dividends
 
 
11,060 
Capital Gain Distributions
 
 
   
Realized Gain/ Loss
 
 
3,773 
Taxes
 
 
(647)
Fees
 
 
(1,656)
Unrealized Change in Fair Value
 
 
4,786 
Fair Value
$ 302,766 
$ 282,313 
$ 302,766 
Perpetual Care Trusts - Additional Information (Detail) (Variable Interest Entity, Primary Beneficiary, Perpetual care trusts, USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Variable Interest Entity, Primary Beneficiary |
Perpetual care trusts
 
 
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
Net Contributions into the trusts
 
 
$ 3.1 
 
Purchases of securities available for sale included in trust investments
 
 
95.9 
 
Sales of securities available for sale included in trust investments
 
 
95.1 
 
Contributions of assets
 
 
5.9 
 
Other than temporary impairments loss
$ 0 
$ 0 
$ 0 
$ 0 
Goodwill by Reportable Segment (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Goodwill [Line Items]
 
 
Goodwill, Beginning Balance
$ 42,392 
$ 40,227 
Goodwill acquired from acquisitions during the nine months ended September 30, 2013
5,178 
 
Goodwill, Ending Balance
47,570 
40,227 
Cemetery Operations South East
 
 
Goodwill [Line Items]
 
 
Goodwill, Beginning Balance
6,174 
6,174 
Goodwill acquired from acquisitions during the nine months ended September 30, 2013
   
 
Goodwill, Ending Balance
6,174 
6,174 
Cemetery Operations North East
 
 
Goodwill [Line Items]
 
 
Goodwill, Beginning Balance
   
 
Goodwill acquired from acquisitions during the nine months ended September 30, 2013
   
 
Goodwill, Ending Balance
   
 
Cemetery Operations West
 
 
Goodwill [Line Items]
 
 
Goodwill, Beginning Balance
11,948 
11,948 
Goodwill acquired from acquisitions during the nine months ended September 30, 2013
   
 
Goodwill, Ending Balance
11,948 
11,948 
Funeral Home
 
 
Goodwill [Line Items]
 
 
Goodwill, Beginning Balance
24,270 
22,105 
Goodwill acquired from acquisitions during the nine months ended September 30, 2013
5,178 
 
Goodwill, Ending Balance
$ 29,448 
$ 22,105 
Major Classes of Intangible Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
$ 14,458 
$ 12,531 
Accumulated Amortization
(4,385)
(3,189)
Net Intangible Asset
10,073 
9,342 
Underlying contract value
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
6,239 
6,239 
Accumulated Amortization
(624)
(555)
Net Intangible Asset
5,615 
5,684 
Noncompete Agreements
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
7,950 
6,023 
Accumulated Amortization
(3,668)
(2,553)
Net Intangible Asset
4,282 
3,470 
Other intangible assets
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
269 
269 
Accumulated Amortization
(93)
(81)
Net Intangible Asset
$ 176 
$ 188 
Outstanding Debt (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
May 28, 2013
Dec. 31, 2012
Debt Instrument [Line Items]
 
 
 
Long-Term Debt
$ 285,577 
 
$ 258,293 
Less current portion
6,550 
 
2,175 
Less unamortized bond and note payable discounts
4,485 
 
3,344 
Long-term portion
274,542 
 
252,774 
7.875% senior notes, due 2021
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-Term Debt
175,000 
 
   
Less unamortized bond and note payable discounts
 
3,800 
 
10.25% Senior Notes, due 2017
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-Term Debt
   
 
150,000 
Less unamortized bond and note payable discounts
2,600 
 
 
Revolving Credit Facility, due January 2017
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-Term Debt
99,502 
 
101,700 
Notes Payable, other Payables |
Acquisition debt
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-Term Debt
4,159 
 
1,465 
Notes Payable, other Payables |
acquisition non-competes
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-Term Debt
4,364 
 
3,830 
Insurance and vehicle financing
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-Term Debt
$ 2,552 
 
$ 1,298 
Outstanding Debt (Parenthetical) (Detail)
9 Months Ended 12 Months Ended
Sep. 30, 2013
Dec. 31, 2012
May 28, 2013
7.875% senior notes, due 2021
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-Term Debt, interest rate
7.875% 
7.875% 
7.875% 
Long-Term Debt, maturity date, year
2021 
2021 
 
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 
 
Revolving Credit Facility, due January 2017
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-Term Debt, maturity date
2017-01 
2017-01 
 
Long Term Debt - Additional Information (Detail) (USD $)
1 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended
Feb. 28, 2013
Sep. 30, 2013
Dec. 31, 2012
Feb. 28, 2013
Third Amended and Restated Credit Agreement
First Amendment
Sep. 30, 2013
Third Amended and Restated Credit Agreement
First Amendment
Feb. 19, 2013
Third Amended and Restated Credit Agreement
First Amendment
Sep. 30, 2013
Third Amended and Restated Credit Agreement
Third Amendment
Sep. 30, 2013
Third Amended and Restated Credit Agreement
Series of Individually Immaterial Business Acquisitions
Third Amendment
Sep. 30, 2013
Third Amended and Restated Credit Agreement
Total Aggregate Consideration
Third Amendment
Sep. 30, 2013
Line of Credit
Minimum
Sep. 30, 2013
Line of Credit
Minimum
Second Amendment
Sep. 30, 2013
Line of Credit
Maximum
Sep. 30, 2013
Line of Credit
Maximum
Second Amendment
Sep. 30, 2013
Line of Credit
Base Rate
May 28, 2013
7.875% senior notes, due 2021
May 31, 2013
7.875% senior notes, due 2021
Sep. 30, 2013
7.875% senior notes, due 2021
Dec. 31, 2012
7.875% senior notes, due 2021
Sep. 30, 2013
10.25% Senior Notes, due 2017
Dec. 31, 2012
10.25% Senior Notes, due 2017
Debt Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt premium percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.31% 
 
 
 
 
 
Long-Term Debt, fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 179,000,000 
 
 
 
 
 
Long-Term Debt, principal amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
175,000,000 
 
 
 
150,000,000 
 
Long-Term Debt, interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.875% 
 
7.875% 
7.875% 
10.25% 
10.25% 
Long-Term Debt, Issued price per $100
 
 
 
 
 
 
 
 
 
 
 
 
 
 
97.832% 
 
 
 
 
 
Net proceeds from issuance of senior notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
171,200,000 
 
 
 
 
Long-Term Debt, discount
 
4,485,000 
3,344,000 
 
 
 
 
 
 
 
 
 
 
 
3,800,000 
 
 
 
2,600,000 
 
Long-Term Debt, debt issuance costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,200,000 
 
 
 
 
Long term debt, maturity date
Feb. 19, 2014 
 
 
Jan. 19, 2017 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec. 01, 2017 
 
Long-Term Debt, original issue discount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,000,000 
 
Extinguishment of debt costs
 
14,920,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
14,900,000 
 
Long-term debt, unamortized debt issuance costs expensed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,100,000 
 
Long-term debt, expensed related to refinancing event
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6,700,000 
 
Credit facility , increase in available credit
 
 
 
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility , maximum borrowing
 
 
 
 
 
140,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility, outstanding
 
 
 
 
99,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt covenant, Consolidated EBITDA requirement for recently completed four fiscal quarters
 
 
 
 
 
 
57,822,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt covenant, Percentage of consolidated EBITDA
 
 
 
 
 
 
80.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility, interest rate margin on base rate
 
 
 
 
 
 
3.00% 
 
 
1.25% 
 
3.00% 
 
 
 
 
 
 
 
 
Credit facility, interest rate margin on Eurodollar rate
 
 
 
 
 
 
4.00% 
 
 
2.25% 
 
4.00% 
 
 
 
 
 
 
 
 
Credit facility, unused commitment fee rate
 
 
 
 
 
 
0.80% 
 
 
 
0.375% 
 
0.80% 
 
 
 
 
 
 
 
Leverage ratio
 
 
 
 
 
 
3.75 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of aggregate consideration company may pay without lender approval for permitted acquisitions
 
 
 
 
 
 
 
10,000,000 
50,000,000 
 
 
 
 
 
 
 
 
 
 
 
Debt Covenant, value of permitted acquisition consideration within preceding 180 days to be defined as Significant Permitted Acquisition
 
 
 
 
 
 
$ 35,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Covenant, temporary increase in consolidated leverage ratio
 
 
 
 
 
 
4.00 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility, interest rate
 
 
 
 
 
 
 
 
 
3.50% 
 
4.00% 
 
 
 
 
 
 
 
 
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% 
 
 
 
 
 
 
Measurement of Maximum Consolidated Leverage Ratio (Detail) (Third Amended and Restated Credit Agreement, Third Amendment)
9 Months Ended
Sep. 30, 2013
June 30, 2013 through December 31, 2013
 
Debt Instrument [Line Items]
 
Maximum consolidated leverage ratio
4.000 
March 31, 2014
 
Debt Instrument [Line Items]
 
Maximum consolidated leverage ratio
3.875 
June 30, 2014 and thereafter
 
Debt Instrument [Line Items]
 
Maximum consolidated leverage ratio
3.750 
Income Taxes - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Income Taxes [Line Items]
 
Percentage of qualifying income of partnership for federal income tax purposes
90.00% 
Internal Revenue Service (IRS)
 
Income Taxes [Line Items]
 
Net operating loss carryforwards
$ 163.6 
Net operating loss carryforwards, expiration date
2019 
State and Local Jurisdiction
 
Income Taxes [Line Items]
 
Net operating loss carryforwards
$ 201.8 
Deferred Cemetery Revenues Net (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Deferred Revenue Arrangement [Line Items]
 
 
Deferred merchandise trust unrealized gains
$ 5,374 
$ 600 
Deferred cost of goods sold
(52,762)
(47,309)
Deferred cemetery revenues, net
557,973 
497,861 
Deferred selling and obtaining costs
85,201 
76,317 
Pre Acquisition Margin
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred cemetery revenues, net
133,583 
132,221 
Cemetery
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred cemetery revenues, net
389,776 
346,621 
Merchandise Trusts
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred cemetery revenues, net
$ 82,002 
$ 65,728 
Commitments and Contingencies - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Leases Disclosure [Line Items]
 
 
 
 
Operating lease expense
$ 0.7 
$ 0.6 
$ 2.0 
$ 1.9 
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, 2013
Schedule of Capital Lease Obligations [Line Items]
 
2014
$ 1,608 
2015
1,048 
2016
936 
2017
891 
2018
875 
Thereafter
1,927 
Total
$ 7,285 
Partners Capital - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
1 Months Ended 3 Months Ended 9 Months Ended 1 Months Ended
Mar. 26, 2013
Sep. 30, 2013
Sep. 30, 2013
Feb. 19, 2013
First Quarter 2013 Acquisition
Jun. 21, 2013
Second Quarter 2010 Acquisition
Jun. 30, 2012
Second Quarter 2010 Acquisition
Jun. 6, 2012
Second Quarter 2012 Acquisition
Jul. 31, 2012
Third Quarter 2012 Acquisitions
Sep. 30, 2013
Unit appreciation rights
Limited Partners' Capital Account [Line Items]
 
 
 
 
 
 
 
 
 
Non-vested unit appreciation rights expense outstanding
 
 
 
 
 
 
 
 
$ 0.3 
Number of units not included in diluted weighted average number of limited partners' units outstanding
 
306,723 
318,134 
 
 
 
 
 
 
Units issued in connection with acquisition
 
 
 
159,635 
4,923 
9,853 
13,720 
128,299 
 
Public offering, common units sold
1,610,000 
 
 
 
 
 
 
 
 
Public offering, price per unit
$ 25.35 
 
 
 
 
 
 
 
 
Public offering, net proceeds
$ 38.4 
 
 
 
 
 
 
 
 
Acquisitions - Additional Information (Detail) (USD $)
1 Months Ended 3 Months Ended 9 Months Ended 1 Months Ended 1 Months Ended 3 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Feb. 28, 2013
Mar. 31, 2013
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Positive Outcome of Litigation
Sep. 30, 2013
Positive Outcome of Litigation
General and Administrative Expense
Sep. 30, 2013
Positive Outcome of Litigation
Acquisition-related Costs
Sep. 30, 2013
Positive Outcome of Litigation
Merchandise Trusts
Sep. 30, 2010
Joint Operating Agreement
Feb. 28, 2013
Purchase and Sale Agreement
Funeral Homes Property
Feb. 28, 2013
Purchase and Sale Agreement
Funeral Homes Property
Noncompete Agreements
Installment
Sep. 26, 2013
Third Quarter 2013 Acquisition
Aug. 1, 2013
Third Quarter 2013 Acquisition
Sep. 26, 2013
Third Quarter 2013 Acquisition
Minimum
Y
Sep. 26, 2013
Third Quarter 2013 Acquisition
Maximum
Y
Sep. 26, 2013
Third Quarter 2013 Acquisition
If Orphans' Court approval has not been received by the Pre-commencement expiration date
Sep. 26, 2013
Third Quarter 2013 Acquisition
If StoneMor must include or incorporate by reference any historical financial information of the Cemeteries
Aug. 1, 2013
Third Quarter 2013 Acquisition
Cemetery property
Property
Sep. 26, 2013
Third Quarter 2013 Acquisition
Cemetery property
Property
Sep. 26, 2012
Third Quarter 2013 Acquisition
Cemetery property
License Agreement
Property
Sep. 26, 2012
Third Quarter 2013 Acquisition
Cemetery property
Management Agreement
Property
Jan. 31, 2012
First Quarter 2012 Acquisition
Mar. 31, 2012
First Quarter 2012 Acquisition
Jun. 6, 2012
Second Quarter 2012 Acquisition
Apr. 30, 2012
Second Quarter 2012 Acquisition
Jun. 30, 2012
Second Quarter 2012 Acquisition
Funeral Homes Property
Property
Jun. 30, 2012
Second Quarter 2012 Acquisition
Funeral Homes Property
Noncompete Agreements
Apr. 30, 2012
Second Quarter 2012 Acquisition
Cemetery property
Property
Jul. 31, 2012
Third Quarter 2012 Acquisitions
Person
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
Jul. 31, 2012
Third Quarter 2012 Acquisitions
Cemetery property
Property
Sep. 30, 2013
Third Quarter 2012 Acquisitions
Cemetery property
Sep. 30, 2013
Third Quarter 2012 Acquisitions
Cemetery property
Noncompete Agreements
Installment
Sep. 30, 2013
Two Thousand Thirteen Acquisitions
Sep. 30, 2013
Two Thousand Thirteen Acquisitions
Sep. 30, 2013
Two Thousand Twelve Acquisitions
Sep. 30, 2013
Two Thousand Twelve Acquisitions
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business acquisition, Consideration paid
 
 
 
 
 
 
 
 
 
$ 9,100,000 
 
 
$ 5,000,000 
 
 
 
 
 
 
 
 
$ 1,700,000 
$ 1,652,000 
 
$ 900,000 
$ 850,000 
 
 
 
 
 
$ 2,300,000 
 
 
$ 20,000,000 
 
 
 
 
 
Business acquisition, units issued
 
 
 
 
 
 
 
 
 
159,635 
 
 
 
 
 
 
 
 
 
 
 
 
 
13,720 
 
13,720 
 
 
128,299 
 
 
 
 
 
128,299 
 
 
 
 
 
Business acquisition, Consideration paid - units
 
 
 
 
 
 
 
 
 
3,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
350,000 
 
 
 
 
 
 
 
 
3,500,000 
 
 
 
 
 
Long-Term Debt, face amount
 
 
 
 
 
 
 
 
 
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-Term Debt, interest rate
 
 
 
 
 
 
 
 
 
5.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-Term Debt, maturity
Feb. 19, 2014 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Installment payment amount
 
 
 
 
 
 
 
 
 
 
1,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
300,000 
 
 
 
1,500,000 
 
 
 
 
Number of installment payments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Installment payment start date
 
 
 
 
 
 
 
 
 
 
Feb. 19, 2014 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jul. 02, 2012 
Jul. 02, 2012 
 
 
Aug. 01, 2013 
 
 
 
 
Finite lived intangible asset, amortization period
 
6 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of businesses acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amended Operating Agreement, term
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
40 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term of lease, for building and underlying real estate as part of business acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lease renewal term, for building and underlying real estate as part of business acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business acquisition, Aggregate consideration payable in installments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business acquisition, Installment payment start date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jan. 02, 2013 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Purchase and Sale Agreement, number of individuals
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property Acquired, revenue contributed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,300,000 
2,800,000 
2,500,000 
7,100,000 
Property Acquired, operating profit contributed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
200,000 
500,000 
100,000 
100,000 
Deferred gain
 
 
 
 
 
 
 
 
3,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contract termination, payment receivable
 
 
 
2,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contract termination, gain recognized
 
 
 
1,737,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Settlement agreement, funds placed into trust
 
 
18,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Litigation settlement, payment for the properties' perpetual care and merchandise trusts
 
 
 
 
6,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Litigation settlement, Gain on settlement agreement
 
 
12,261,000 
 
12,300,000 
 
 
3,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Litigation settlement, cash proceeds from settlement
 
 
 
 
11,900,000 
1,700,000 
1,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of properties acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Up-front rental payment to landlord
 
 
 
 
 
 
 
 
 
 
 
53,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate fixed rent payment to landlord
 
 
$ 7,285,000 
 
 
 
 
 
 
 
 
$ 36,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rent for lease, years deferred
 
 
 
 
 
 
 
 
 
 
 
 
 
11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leasing agreement description
 
 
 
 
 
 
 
 
 
 
 
If Landlord terminates the Lease pursuant to a Lease Year 11 Termination, Landlord must repay to Tenant all $53.0 million of the Up-Front Rent. If the Lease is terminated for cause at any time, Landlord must repay to Tenant the unamortized portion of the Up-Front Rent (i) based on a 60 year amortization schedule if terminated by Tenant due to Landlord's default and (ii) based on a 30 year amortization schedule if terminated by Landlord due to Tenant's default. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-commencement expiration date
 
 
 
 
 
 
 
 
 
 
 
Dec. 31, 2013 
 
 
 
Mar. 31, 2014 
Jun. 30, 2014 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of sales proceeds to landlord from the sale of undeveloped land
 
 
 
 
 
 
 
 
 
 
 
51.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preliminary Assessment of Fair Value of Net Assets Acquired of First Quarter Twenty Thirteen Acquisition (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2012
Sep. 30, 2013
Funeral Home
Dec. 31, 2012
Funeral Home
Sep. 30, 2012
Funeral Home
Mar. 31, 2013
First Quarter 2013 Acquisition
Preliminary Allocation
Funeral Home
Mar. 31, 2013
First Quarter 2013 Acquisition
Preliminary Allocation
Funeral Home
Accounts receivable
Mar. 31, 2013
First Quarter 2013 Acquisition
Preliminary Allocation
Funeral Home
Property and equipment
Mar. 31, 2013
First Quarter 2013 Acquisition
Preliminary Allocation
Funeral Home
Perpetual care trusts, restricted, at fair value
Merchandise Trusts
Mar. 31, 2013
First Quarter 2013 Acquisition
Preliminary Allocation
Funeral Home
Noncompete Agreements
Mar. 31, 2013
First Quarter 2013 Acquisition
Preliminary Allocation
Funeral Home
Deferred margin
Mar. 31, 2013
First Quarter 2013 Acquisition
Preliminary Allocation
Funeral Home
Merchandise Liabilities Noncurrent
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of assets acquired
 
 
 
 
 
 
 
$ 995 
 
$ 4,853 
 
 
 
Estimated fair value of property and equipment acquired
 
 
 
 
 
 
 
 
8,315 
 
 
 
 
Estimated fair value of intangibles
 
 
 
 
 
 
 
 
 
 
1,927 
 
 
Total assets
 
 
 
 
 
 
16,090 
 
 
 
 
 
 
Estimated fair value of liabilities assumed
 
 
 
 
 
 
 
 
 
 
 
2,419 
2,233 
Total liabilities
 
 
 
 
 
 
4,652 
 
 
 
 
 
 
Fair value of net assets acquired
 
 
 
 
 
 
11,438 
 
 
 
 
 
 
Consideration paid - cash
 
 
 
 
 
 
9,100 
 
 
 
 
 
 
Consideration paid - units
 
 
 
 
 
 
3,592 
 
 
 
 
 
 
Fair value of note payable
 
 
 
 
 
 
3,000 
 
 
 
 
 
 
Fair value of debt assumed for non-compete agreements
 
 
 
 
 
 
 
 
 
 
924 
 
 
Total consideration paid
 
 
 
 
 
 
16,616 
 
 
 
 
 
 
Goodwill from purchase
$ 47,570 
$ 42,392 
$ 40,227 
$ 29,448 
$ 24,270 
$ 22,105 
$ 5,178 
 
 
 
 
 
 
Preliminary Assessment of Fair Value of Net Assets Acquired and Resulting Gain on Bargain Purchase of Third Quarter Twenty Thirteen (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended 1 Months Ended 3 Months Ended
Sep. 30, 2013
Sep. 30, 2013
Sep. 30, 2012
Aug. 1, 2013
Third Quarter 2013 Acquisition
Sep. 30, 2013
Third Quarter 2013 Acquisition
Preliminary Allocation
Sep. 30, 2013
Third Quarter 2013 Acquisition
Preliminary Allocation
Accounts receivable
Sep. 30, 2013
Third Quarter 2013 Acquisition
Preliminary Allocation
Cemetery property
Sep. 30, 2013
Third Quarter 2013 Acquisition
Preliminary Allocation
Property and equipment
Sep. 30, 2013
Third Quarter 2013 Acquisition
Preliminary Allocation
Perpetual care trusts, restricted, at fair value
Merchandise Trusts
Sep. 30, 2013
Third Quarter 2013 Acquisition
Preliminary Allocation
Perpetual care trusts, restricted, at fair value
Perpetual care trusts
Sep. 30, 2013
Third Quarter 2013 Acquisition
Preliminary Allocation
Merchandise Liabilities Noncurrent
Sep. 30, 2013
Third Quarter 2013 Acquisition
Preliminary Allocation
Deferred margin
Sep. 30, 2013
Third Quarter 2013 Acquisition
Preliminary Allocation
Perpetual care trust corpus
Perpetual care trusts
Sep. 30, 2013
Third Quarter 2013 Acquisition
Preliminary Allocation
Other liabilities
Sep. 30, 2013
Third Quarter 2013 Acquisition
Preliminary Allocation
Deferred tax liability
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of assets acquired
 
 
 
 
 
$ 525 
 
 
$ 5,461 
$ 5,888 
 
 
 
 
 
Estimated fair value of property acquired
 
 
 
 
 
 
3,900 
1,047 
 
 
 
 
 
 
 
Total assets
 
 
 
 
16,821 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of liabilities assumed
 
 
 
 
 
 
 
 
 
 
1,252 
1,356 
5,888 
94 
701 
Total liabilities
 
 
 
 
9,291 
 
 
 
 
 
 
 
 
 
 
Fair value of net assets acquired
 
 
 
 
7,530 
 
 
 
 
 
 
 
 
 
 
Consideration paid
 
 
 
5,000 
5,000 
 
 
 
 
 
 
 
 
 
 
Gain on bargain purchase
$ 2,530 
$ 2,530 
$ 122 
 
$ 2,530 
 
 
 
 
 
 
 
 
 
 
Final 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 $)
In Thousands, unless otherwise specified
1 Months Ended 3 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2012
Jan. 31, 2012
First Quarter 2012 Acquisition
Mar. 31, 2012
First Quarter 2012 Acquisition
Mar. 31, 2012
First Quarter 2012 Acquisition
Accounts receivable
Mar. 31, 2012
First Quarter 2012 Acquisition
Cemetery property
Mar. 31, 2012
First Quarter 2012 Acquisition
Property and equipment
Mar. 31, 2012
First Quarter 2012 Acquisition
Notes Payable
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
Estimated fair value of assets acquired
 
 
 
 
 
$ 66 
 
 
 
Estimated fair value of property and equipment acquired
 
 
 
 
 
 
3,001 
102 
 
Total net assets acquired
 
 
 
 
3,169 
 
 
 
 
Estimated fair value of liabilities assumed
 
 
 
 
 
 
 
 
519 
Intangible asset representing underlying contract value
 
 
 
 
(2,236)
 
 
 
 
Fair value of net assets acquired and divested
 
 
 
 
1,452 
 
 
 
 
Consideration paid
 
 
 
1,700 
1,652 
 
 
 
 
Goodwill from purchase
$ 47,570 
$ 42,392 
$ 40,227 
 
$ 200 
 
 
 
 
Final Assessment of Fair Value of Net Assets Acquired Elimination of Debt and Other Assets and Purchase Price Gain on Bargain Purchase of Bronswood Cemetery (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended 1 Months Ended 3 Months Ended
Sep. 30, 2013
Sep. 30, 2013
Sep. 30, 2012
Apr. 30, 2012
Second Quarter 2012 Acquisition
Jun. 30, 2012
Second Quarter 2012 Acquisition
Cemetery
Jun. 30, 2012
Second Quarter 2012 Acquisition
Cemetery
Accounts receivable
Jun. 30, 2012
Second Quarter 2012 Acquisition
Cemetery
Cemetery property
Jun. 30, 2012
Second Quarter 2012 Acquisition
Cemetery
Property and equipment
Jun. 30, 2012
Second Quarter 2012 Acquisition
Cemetery
Perpetual care trusts, restricted, at fair value
Perpetual care trusts
Jun. 30, 2012
Second Quarter 2012 Acquisition
Cemetery
Noncompete Agreements
Jun. 30, 2012
Second Quarter 2012 Acquisition
Cemetery
Perpetual care trust corpus
Perpetual care trusts
Jun. 30, 2012
Second Quarter 2012 Acquisition
Cemetery
Other liabilities
Jun. 30, 2012
Second Quarter 2012 Acquisition
Cemetery
Deferred tax liability
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of assets acquired
 
 
 
 
 
$ 72 
 
 
$ 2,780 
 
 
 
 
Estimated fair value of property and equipment acquired
 
 
 
 
 
 
842 
518 
 
 
 
 
 
Estimated fair value of intangibles
 
 
 
 
 
 
 
 
 
12 
 
 
 
Total assets
 
 
 
 
4,224 
 
 
 
 
 
 
 
 
Estimated fair value of liabilities assumed
 
 
 
 
 
 
 
 
 
 
2,780 
24 
374 
Total liabilities
 
 
 
 
3,178 
 
 
 
 
 
 
 
 
Fair value of net assets acquired
 
 
 
 
1,046 
 
 
 
 
 
 
 
 
Consideration paid
 
 
 
900 
924 
 
 
 
 
 
 
 
 
Gain on bargain purchase
$ 2,530 
$ 2,530 
$ 122 
 
$ 122 
 
 
 
 
 
 
 
 
Final 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 (Detail) (USD $)
In Thousands, unless otherwise specified
1 Months Ended 9 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2012
Apr. 30, 2012
Second Quarter 2012 Acquisition
Sep. 30, 2013
Funeral Home
Dec. 31, 2012
Funeral Home
Sep. 30, 2012
Funeral Home
Sep. 30, 2013
Funeral Home
Second Quarter 2012 Acquisition
Sep. 30, 2013
Funeral Home
Second Quarter 2012 Acquisition
Property and equipment
Sep. 30, 2013
Funeral Home
Second Quarter 2012 Acquisition
Perpetual care trusts, restricted, at fair value
Merchandise Trusts
Sep. 30, 2013
Funeral Home
Second Quarter 2012 Acquisition
Underlying contract value
Sep. 30, 2013
Funeral Home
Second Quarter 2012 Acquisition
Noncompete Agreements
Sep. 30, 2013
Funeral Home
Second Quarter 2012 Acquisition
Merchandise Liabilities Noncurrent
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of property and equipment acquired
 
 
 
 
 
 
 
 
$ 48 
 
 
 
 
Estimated fair value of assets acquired
 
 
 
 
 
 
 
 
 
105 
 
 
 
Estimated fair value of intangibles
 
 
 
 
 
 
 
 
 
 
64 
40 
 
Total assets
 
 
 
 
 
 
 
257 
 
 
 
 
 
Estimated fair value of liabilities assumed
 
 
 
 
 
 
 
 
 
 
 
 
105 
Total liabilities
 
 
 
 
 
 
 
105 
 
 
 
 
 
Fair value of net assets acquired
 
 
 
 
 
 
 
152 
 
 
 
 
 
Consideration paid - cash
 
 
 
900 
 
 
 
850 
 
 
 
 
 
Consideration paid - units
 
 
 
 
 
 
 
350 
 
 
 
 
 
Fair value of debt assumed for non-compete agreements
 
 
 
 
 
 
 
 
 
 
 
544 
 
Total consideration paid
 
 
 
 
 
 
 
1,744 
 
 
 
 
 
Goodwill from purchase
$ 47,570 
$ 42,392 
$ 40,227 
 
$ 29,448 
$ 24,270 
$ 22,105 
$ 1,592 
 
 
 
 
 
Final Assessment of Fair Value of Net Assets Acquired Purchase Price and Resulting Goodwill Third Quarter Twenty Twelve Acquisition (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 3 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2012
Sep. 30, 2013
Funeral Home
Dec. 31, 2012
Funeral Home
Sep. 30, 2012
Funeral Home
Sep. 30, 2012
Third Quarter 2012 Acquisitions
Funeral Home
Sep. 30, 2012
Third Quarter 2012 Acquisitions
Funeral Home
Property and equipment
Sep. 30, 2012
Third Quarter 2012 Acquisitions
Funeral Home
Noncompete Agreements
Sep. 30, 2012
Third Quarter 2012 Acquisitions
Cemetery and Funeral Homes
Sep. 30, 2012
Third Quarter 2012 Acquisitions
Cemetery and Funeral Homes
Property and equipment
Sep. 30, 2012
Third Quarter 2012 Acquisitions
Cemetery and Funeral Homes
Noncompete Agreements
Sep. 30, 2012
Third Quarter 2012 Acquisitions
Cemetery and Funeral Homes
Accounts receivable
Sep. 30, 2012
Third Quarter 2012 Acquisitions
Cemetery and Funeral Homes
Cemetery property
Sep. 30, 2012
Third Quarter 2012 Acquisitions
Cemetery and Funeral Homes
Perpetual care trusts, restricted, at fair value
Merchandise Trusts
Sep. 30, 2012
Third Quarter 2012 Acquisitions
Cemetery and Funeral Homes
Perpetual care trusts, restricted, at fair value
Perpetual care trusts
Sep. 30, 2012
Third Quarter 2012 Acquisitions
Cemetery and Funeral Homes
Other assets
Sep. 30, 2012
Third Quarter 2012 Acquisitions
Cemetery and Funeral Homes
Deferred margin
Sep. 30, 2012
Third Quarter 2012 Acquisitions
Cemetery and Funeral Homes
Merchandise Liabilities Noncurrent
Sep. 30, 2012
Third Quarter 2012 Acquisitions
Cemetery and Funeral Homes
Perpetual care trust corpus
Perpetual care trusts
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of assets acquired
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,005 
 
$ 11,884 
$ 2,232 
$ 122 
 
 
 
Estimated fair value of property and equipment acquired
 
 
 
 
 
 
 
1,296 
 
 
5,864 
 
 
6,100 
 
 
 
 
 
 
Estimated fair value of intangibles
 
 
 
 
 
 
 
 
170 
 
 
1,777 
 
 
 
 
 
 
 
 
Total assets
 
 
 
 
 
 
1,466 
 
 
28,984 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of liabilities assumed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,746 
3,458 
2,232 
Total liabilities
 
 
 
 
 
 
   
 
 
9,436 
 
 
 
 
 
 
 
 
 
 
Fair value of net assets acquired
 
 
 
 
 
 
1,466 
 
 
19,548 
 
 
 
 
 
 
 
 
 
 
Consideration paid - cash
 
 
 
 
 
 
2,300 
 
 
20,000 
 
 
 
 
 
 
 
 
 
 
Consideration paid - units
 
 
 
 
 
 
 
 
 
3,500 
 
 
 
 
 
 
 
 
 
 
Fair value of debt assumed for non-compete agreements
 
 
 
 
 
 
 
 
274 
 
 
1,230 
 
 
 
 
 
 
 
 
Total consideration paid
 
 
 
 
 
 
2,574 
 
 
24,730 
 
 
 
 
 
 
 
 
 
 
Goodwill from purchase
$ 47,570 
$ 42,392 
$ 40,227 
$ 29,448 
$ 24,270 
$ 22,105 
$ 1,108 
 
 
$ 5,182 
 
 
 
 
 
 
 
 
 
 
Consolidated Pro Forma Information (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
 
 
 
 
Revenue
$ 61,585 
$ 63,891 
$ 184,497 
$ 191,463 
Net income (loss)
$ (4,037)
$ 1,000 
$ (18,105)
$ 2,848 
Net income (loss) per limited partner unit (basic and diluted)
$ (0.19)
$ 0.05 
$ (0.85)
$ 0.14 
Fixed Rent for Cemeteries (Detail) (USD $)
1 Months Ended
Sep. 26, 2013
Lease Years 1-5
 
Operating Leases Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
$ 0 
Lease Years 6-20
 
Operating Leases Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
1,000,000 
Lease Years 21-25
 
Operating Leases Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
1,200,000 
Lease Years 26- 35
 
Operating Leases Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
1,500,000 
Lease Years 36-60
 
Operating Leases Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
$ 0 
Minimum |
Lease Years 1-5
 
Operating Leases Future Minimum Payments Due [Line Items]
 
Lease years
Minimum |
Lease Years 6-20
 
Operating Leases Future Minimum Payments Due [Line Items]
 
Lease years
Minimum |
Lease Years 21-25
 
Operating Leases Future Minimum Payments Due [Line Items]
 
Lease years
21 
Minimum |
Lease Years 26- 35
 
Operating Leases Future Minimum Payments Due [Line Items]
 
Lease years
26 
Minimum |
Lease Years 36-60
 
Operating Leases Future Minimum Payments Due [Line Items]
 
Lease years
36 
Maximum |
Lease Years 1-5
 
Operating Leases Future Minimum Payments Due [Line Items]
 
Lease years
Maximum |
Lease Years 6-20
 
Operating Leases Future Minimum Payments Due [Line Items]
 
Lease years
20 
Maximum |
Lease Years 21-25
 
Operating Leases Future Minimum Payments Due [Line Items]
 
Lease years
25 
Maximum |
Lease Years 26- 35
 
Operating Leases Future Minimum Payments Due [Line Items]
 
Lease years
35 
Maximum |
Lease Years 36-60
 
Operating Leases Future Minimum Payments Due [Line Items]
 
Lease years
60 
Segment Information - Additional Information (Detail)
9 Months Ended
Sep. 30, 2013
Segment
Segment Reporting Disclosure [Line Items]
 
Number of distinct reportable segments
Pre-need sales revenue recognition, percentage of sales price collected
10.00% 
Cemetery
 
Segment Reporting Disclosure [Line Items]
 
Number of distinct reportable segments
Segment Information (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Revenues
 
 
 
 
 
Revenues
$ 61,539 
$ 62,197 
$ 183,573 
$ 183,292 
 
Costs and expenses
 
 
 
 
 
Selling
11,692 
11,290 
35,134 
36,200 
 
General and administrative
7,902 
7,015 
23,382 
21,403 
 
Corporate overhead
7,997 
6,546 
21,657 
20,905 
 
Depreciation and amortization
2,378 
2,199 
7,159 
6,759 
 
Funeral home
8,981 
7,096 
27,081 
20,467 
 
Acquisition related costs, net of recoveries
243 
1,085 
901 
2,198 
 
Total costs and expenses
60,802 
57,129 
179,118 
171,053 
 
Operating profit
737 
5,068 
4,455 
12,239 
 
Total assets
1,448,815 
1,329,937 
1,448,815 
1,329,937 
1,343,725 
Long lived asset additions
8,592 
16,545 
23,108 
26,845 
 
Goodwill
47,570 
40,227 
47,570 
40,227 
42,392 
Cemetery
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Cost of sales
7,102 
7,646 
21,104 
21,302 
 
Cemetery
14,507 
14,252 
42,700 
41,819 
 
Cemetery |
Sales
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
32,477 
34,123 
94,756 
99,260 
 
Cemetery |
Service and other
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
18,689 
19,248 
56,350 
58,414 
 
Funeral Homes Property
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
10,373 
8,826 
32,467 
25,618 
 
Cemetery property
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Amortization of cemetery property
1,910 
2,305 
5,521 
6,285 
 
Cemetery Operations South East
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
33,504 
33,807 
99,720 
97,282 
 
Costs and expenses
 
 
 
 
 
Selling
7,769 
7,356 
22,913 
22,072 
 
General and administrative
4,064 
3,694 
12,266 
11,130 
 
Depreciation and amortization
575 
513 
1,688 
1,559 
 
Total costs and expenses
24,124 
23,406 
71,317 
68,317 
 
Operating profit
9,380 
10,401 
28,403 
28,965 
 
Total assets
557,308 
512,446 
557,308 
512,446 
 
Long lived asset additions
6,287 
6,641 
8,613 
11,435 
 
Goodwill
6,174 
6,174 
6,174 
6,174 
6,174 
Cemetery Operations South East |
Cemetery
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Cost of sales
4,929 
5,208 
14,704 
14,471 
 
Cemetery
6,787 
6,635 
19,746 
19,085 
 
Cemetery Operations South East |
Cemetery |
Sales
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
24,304 
24,723 
70,941 
69,415 
 
Cemetery Operations South East |
Cemetery |
Service and other
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
9,200 
9,084 
28,779 
27,867 
 
Cemetery Operations South East |
Cemetery property
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Amortization of cemetery property
1,152 
1,396 
3,182 
3,397 
 
Cemetery Operations North East
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
16,041 
14,195 
47,046 
45,910 
 
Costs and expenses
 
 
 
 
 
Selling
3,081 
2,762 
9,675 
9,220 
 
General and administrative
1,582 
1,486 
4,774 
4,499 
 
Depreciation and amortization
224 
220 
679 
660 
 
Total costs and expenses
10,389 
10,198 
32,273 
30,689 
 
Operating profit
5,652 
3,997 
14,773 
15,221 
 
Total assets
306,577 
297,736 
306,577 
297,736 
 
Long lived asset additions
451 
1,133 
1,710 
2,490 
 
Goodwill
   
 
   
 
   
Cemetery Operations North East |
Cemetery
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Cost of sales
1,811 
2,156 
6,336 
5,857 
 
Cemetery
3,691 
3,574 
10,809 
10,453 
 
Cemetery Operations North East |
Cemetery |
Sales
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
8,963 
8,087 
27,664 
26,090 
 
Cemetery Operations North East |
Cemetery |
Service and other
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
7,078 
6,108 
19,382 
19,820 
 
Cemetery Operations North East |
Cemetery property
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Amortization of cemetery property
585 
526 
1,943 
1,939 
 
Cemetery Operations West
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
18,934 
17,465 
56,721 
52,683 
 
Costs and expenses
 
 
 
 
 
Selling
3,367 
2,875 
10,128 
9,482 
 
General and administrative
2,256 
1,828 
6,342 
5,751 
 
Depreciation and amortization
548 
551 
1,613 
1,666 
 
Total costs and expenses
12,402 
10,924 
36,029 
34,210 
 
Operating profit
6,532 
6,541 
20,692 
18,473 
 
Total assets
418,119 
393,685 
418,119 
393,685 
 
Long lived asset additions
1,477 
684 
2,735 
3,889 
 
Goodwill
11,948 
11,948 
11,948 
11,948 
11,948 
Cemetery Operations West |
Cemetery
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Cost of sales
2,202 
1,628 
5,801 
5,031 
 
Cemetery
4,029 
4,042 
12,145 
12,280 
 
Cemetery Operations West |
Cemetery |
Sales
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
10,440 
9,420 
32,483 
29,743 
 
Cemetery Operations West |
Cemetery |
Service and other
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
8,494 
8,045 
24,238 
22,940 
 
Cemetery Operations West |
Cemetery property
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Amortization of cemetery property
305 
275 
866 
844 
 
Funeral Home
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
12,094 
9,603 
36,904 
27,065 
 
Costs and expenses
 
 
 
 
 
Depreciation and amortization
859 
529 
2,268 
1,667 
 
Funeral home
9,161 
7,161 
27,582 
20,648 
 
Total costs and expenses
10,020 
7,690 
29,850 
22,315 
 
Operating profit
2,074 
1,913 
7,054 
4,750 
 
Total assets
131,750 
104,914 
131,750 
104,914 
 
Long lived asset additions
362 
8,023 
9,287 
8,361 
 
Goodwill
29,448 
22,105 
29,448 
22,105 
24,270 
Funeral Home |
Funeral Homes Property
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
12,094 
9,603 
36,904 
27,065 
 
Corporate
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Selling
 
163 
833 
995 
 
General and administrative
 
 
23 
 
Corporate overhead
7,997 
6,546 
21,657 
20,905 
 
Depreciation and amortization
172 
386 
911 
1,207 
 
Acquisition related costs, net of recoveries
243 
1,085 
901 
2,198 
 
Total costs and expenses
8,412 
8,240 
24,302 
25,433 
 
Operating profit
(8,412)
(8,240)
(24,302)
(25,433)
 
Total assets
35,061 
21,156 
35,061 
21,156 
 
Long lived asset additions
15 
64 
763 
670 
 
Corporate |
Cemetery
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Cost of sales
 
52 
 
104 
 
Cemetery
 
 
 
Adjustment
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
(19,034)
(12,873)
(56,818)
(39,648)
 
Costs and expenses
 
 
 
 
 
Selling
(2,525)
(1,866)
(8,415)
(5,569)
 
Funeral home
(180)
(65)
(501)
(181)
 
Total costs and expenses
(4,545)
(3,329)
(14,653)
(9,911)
 
Operating profit
(14,489)
(9,544)
(42,165)
(29,737)
 
Adjustment |
Cemetery
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Cost of sales
(1,840)
(1,398)
(5,737)
(4,161)
 
Adjustment |
Cemetery |
Sales
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
(11,230)
(8,107)
(36,332)
(25,988)
 
Adjustment |
Cemetery |
Service and other
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
(6,083)
(3,989)
(16,049)
(12,213)
 
Adjustment |
Funeral Homes Property
 
 
 
 
 
Revenues
 
 
 
 
 
Revenues
(1,721)
(777)
(4,437)
(1,447)
 
Adjustment |
Cemetery property
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Amortization of cemetery property
$ (132)
$ 108 
$ (470)
$ 105 
 
Assets and Liabilities Measured at Fair Value (Detail) (Variable Interest Entity, Primary Beneficiary, USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Merchandise Trusts
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
$ 415,355 
$ 375,973 
Merchandise Trusts |
Short-term investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
42,789 
27,890 
Merchandise Trusts |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
14,526 
13,031 
Merchandise Trusts |
Fixed maturities |
U.S. Government and federal agency
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
   
   
Merchandise Trusts |
Fixed maturities |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
9,077 
8,714 
Merchandise Trusts |
Fixed maturities |
Other debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
5,449 
4,317 
Merchandise Trusts |
Mutual funds - debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
111,895 
107,921 
Merchandise Trusts |
Mutual funds - equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
155,117 
145,070 
Merchandise Trusts |
Mutual funds - equity securities |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
50,817 
51,986 
Merchandise Trusts |
Mutual funds - equity securities |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
 
5,666 
Merchandise Trusts |
Mutual funds - equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
34,855 
29,336 
Merchandise Trusts |
Mutual funds - equity securities |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
69,445 
58,082 
Merchandise Trusts |
Equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
78,372 
67,407 
Merchandise Trusts |
Equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
51,207 
42,410 
Merchandise Trusts |
Equity securities |
Preferred Real Estate Investment Trust
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
 
563 
Merchandise Trusts |
Equity securities |
Global Equity Securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
27,165 
24,434 
Merchandise Trusts |
Other invested assets
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
4,793 
7,097 
Merchandise Trusts |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
407,492 
368,416 
Merchandise Trusts |
Level 1 |
Short-term investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
42,789 
27,890 
Merchandise Trusts |
Level 1 |
Mutual funds - debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
111,895 
107,921 
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
50,817 
51,986 
Merchandise Trusts |
Level 1 |
Mutual funds - equity securities |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
 
5,666 
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
34,855 
29,336 
Merchandise Trusts |
Level 1 |
Mutual funds - equity securities |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
69,445 
58,082 
Merchandise Trusts |
Level 1 |
Equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
51,207 
42,410 
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
 
563 
Merchandise Trusts |
Level 1 |
Equity securities |
Global Equity Securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
27,165 
24,434 
Merchandise Trusts |
Level 1 |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
388,173 
348,288 
Merchandise Trusts |
Level 2 |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
14,526 
13,031 
Merchandise Trusts |
Level 2 |
Fixed maturities |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
9,077 
8,714 
Merchandise Trusts |
Level 2 |
Fixed maturities |
Other debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
5,449 
4,317 
Merchandise Trusts |
Level 2 |
Other invested assets
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
4,793 
7,097 
Merchandise Trusts |
Level 2 |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
19,319 
20,128 
Perpetual care trusts
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
302,766 
282,313 
Perpetual care trusts |
Short-term investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
13,971 
21,419 
Perpetual care trusts |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
24,816 
24,174 
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
375 
512 
Perpetual care trusts |
Fixed maturities |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
24,070 
23,291 
Perpetual care trusts |
Fixed maturities |
Other debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
371 
371 
Perpetual care trusts |
Mutual funds - debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
116,426 
107,188 
Perpetual care trusts |
Mutual funds - equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
111,211 
99,212 
Perpetual care trusts |
Mutual funds - equity securities |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
42,328 
42,365 
Perpetual care trusts |
Mutual funds - equity securities |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
14,272 
13,061 
Perpetual care trusts |
Mutual funds - equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
42,231 
34,805 
Perpetual care trusts |
Mutual funds - equity securities |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
12,380 
8,981 
Perpetual care trusts |
Equity securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
36,051 
29,905 
Perpetual care trusts |
Equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
35,202 
28,693 
Perpetual care trusts |
Equity securities |
Preferred Real Estate Investment Trust
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
 
486 
Perpetual care trusts |
Equity securities |
Global Equity Securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
849 
726 
Perpetual care trusts |
Other invested assets
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
291 
415 
Perpetual care trusts |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
302,766 
282,313 
Perpetual care trusts |
Level 1 |
Short-term investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
13,971 
21,419 
Perpetual care trusts |
Level 1 |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
375 
512 
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
375 
512 
Perpetual care trusts |
Level 1 |
Mutual funds - debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
116,426 
107,188 
Perpetual care trusts |
Level 1 |
Mutual funds - equity securities |
real estate sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
42,328 
42,365 
Perpetual care trusts |
Level 1 |
Mutual funds - equity securities |
energy sector
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
14,272 
13,061 
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
42,231 
34,805 
Perpetual care trusts |
Level 1 |
Mutual funds - equity securities |
Other
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
12,380 
8,981 
Perpetual care trusts |
Level 1 |
Equity securities |
Master limited partnerships
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
35,202 
28,693 
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
 
486 
Perpetual care trusts |
Level 1 |
Equity securities |
Global Equity Securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
849 
726 
Perpetual care trusts |
Level 1 |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
278,034 
258,236 
Perpetual care trusts |
Level 2 |
Fixed maturities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
24,441 
23,662 
Perpetual care trusts |
Level 2 |
Fixed maturities |
Corporate debt securities
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
24,070 
23,291 
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
291 
415 
Perpetual care trusts |
Level 2 |
Total managed investments
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Available for sale securities
$ 24,732 
$ 24,077