STONEMOR PARTNERS LP, 10-K/A filed on 11/9/2016
Amended Annual Report
Document and Entity Information (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Feb. 12, 2016
Jun. 30, 2015
Document Information [Line Items]
 
 
 
Document Type
10-K/A 
 
 
Amendment Flag
true 
 
 
Amendment Description
We are filing this Amendment No. 1 to our annual report on Form 10-K (“Form 10-K/A”) for the year ended December 31, 2015, which was originally filed on February 29, 2016 (“Original Filing”), to restate the Partnership’s audited consolidated financial statements as of December 31, 2015 and 2014, and for each of the three years in the period ended December 31, 2015, the related notes thereto, and the Partnership’s unaudited quarterly consolidated financial information for the years ended December 31, 2015 and 2014, included in the Original Filing (“Restatement”). This Form 10-K/A contains only Item 1A (Risk Factors of Part I), Item 6 (Selected Financial Data), Item 7 (Management’s Discussion and Analysis of Financial Condition and Results of Operations), Item 8 (Financial Statements and Supplementary Data) and Item 9A (Controls and Procedures) of Part II and Item 15 (Exhibits, Financial Statement Schedules) of Part IV, and items including information not affected by the Restatement have not been repeated in this Form 10-K/A. The Restatement corrects accounting errors related to: 1) The allocation of net loss to the General Partner and the limited partners for the purposes of determining the general partner’s and limited partners’ capital accounts presented within “Partners’ capital,” and the corresponding effect on “net loss per limited partner unit (basic and diluted)” for each of the three years in the period ended December 31, 2015; 2) The presentation of certain components of “Cemetery property”, “Property and equipment, net of accumulated depreciation”, “Goodwill and intangible assets”, “Deferred cemetery revenues, net”, “Merchandise liability”, “Accounts payable and accrued liabilities” and “Common limited partners’ interest” as of December 31, 2015 and 2014; 3) The presentation of “Cemetery merchandise revenues”, Cemetery service revenues”, and “Cost of goods sold” related to assumed performance obligations from acquisitions for each of the three years in the period ended December 31, 2015 ;4) The recording of incorrect amounts of investment revenues and expenses related to merchandise and perpetual care trusts on the consolidated statement of operations and the incorrect tracking of perpetual care-trusting obligations on the consolidated balance sheets; 5) The recognition of incorrect amounts of revenue from deferred pre-acquisition contracts in the consolidated statement of operations based on inaccurate system inputs; 6) Other adjustments principally relating to the recognition, accuracy and/or classification of certain amounts in “Deferred cemetery revenues, net”, “Merchandise liabilities”, and “Other current assets”, and 7) The corresponding effect of the foregoing accounting errors on the Partnership’s income tax accounts, consolidated statement of partners’ capital, consolidated statement of cash flows, and the related notes thereto, disclosed in the Partnership’s consolidated financial statements as of December 31, 2015 and 2014, and for each of the three years in the period ended December 31, 2015 included in “Item 8 - Financial Statements and Supplementary Data” to this Form 10-K/A (“Item 8”), as well as Note 20, Quarterly Results of Operations (Unaudited), in the Partnership’s consolidated financial statements included in Item 8. Note 2, Restatement of Previously Issued Consolidated Financial Statements, in the Partnership’s consolidated financial statements included in Item 8 provides further information regarding the Restatement. Note 20, Quarterly Results of Operations (Unaudited), in the Partnership’s consolidated financial statements included in Item 8 presents the effect of this Restatement on the Partnership’s unaudited quarterly consolidated financial information for the years ended December 31, 2015 and 2014. “Item 6 - Selected Financial Data” to this Form 10-K/A (“Item 6”) summarizes the effect of this Restatement on the Partnership’s 2015, 2014, 2013, 2012, and 2011 selected consolidated financial data. “Item 9A - Controls and Procedures” to this Form 10-K/A discloses the material weaknesses in the Partnership’s internal controls associated with the Restatement, as well as management’s conclusion that the Partnership’s internal controls over financial reporting were not effective as of December 31, 2015. As disclosed therein, management is currently evaluating the changes needed in the Partnership’s internal controls over financial reporting to remediate these material weaknesses. 
 
 
Document Period End Date
Dec. 31, 2015 
 
 
Document Fiscal Year Focus
2015 
 
 
Document Fiscal Period Focus
FY 
 
 
Trading Symbol
STON 
 
 
Entity Registrant Name
STONEMOR PARTNERS LP 
 
 
Entity Central Index Key
0001286131 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Well-known Seasoned Issuer
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
32,648,469 
 
Entity Public Float
 
 
$ 799.0 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Current assets:
 
 
Cash and cash equivalents
$ 15,153 
$ 10,401 
Accounts receivable, net of allowance
68,415 
62,503 
Prepaid expenses
5,367 
4,708 
Other current assets
22,241 
29,142 
Total current assets
111,176 
106,754 
Long-term accounts receivable, net of allowance
95,167 
89,536 
Cemetery property
334,457 
332,659 
Property and equipment, net of accumulated depreciation
116,127 
110,419 
Merchandise trusts, restricted, at fair value
464,676 
484,820 
Perpetual care trusts, restricted, at fair value
307,804 
345,105 
Deferred selling and obtaining costs
111,542 
97,795 
Deferred tax assets
181 
181 
Goodwill
69,851 
58,836 
Intangible assets
67,209 
68,990 
Other assets
16,167 
4,359 
Total assets
1,694,357 
1,699,454 
Current liabilities:
 
 
Accounts payable and accrued liabilities
29,989 
33,496 
Accrued interest
1,503 
1,219 
Current portion, long-term debt
2,440 
2,251 
Total current liabilities
33,932 
36,966 
Long-term debt, net of deferred financing costs
316,399 
276,289 
Deferred revenues
815,421 
800,288 
Deferred tax liabilities
17,747 
17,792 
Perpetual care trust corpus
307,804 
345,105 
Other long-term liabilities
21,508 
17,404 
Total liabilities
1,512,811 
1,493,844 
Commitments and contingencies
   
   
Partners' Capital
 
 
General partner interest
15 
1,017 
Common limited partners' interests
181,531 
204,593 
Total partners' capital
181,546 
205,610 
Total liabilities and partners' capital
$ 1,694,357 
$ 1,699,454 
Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Revenues:
 
 
 
Total revenues
$ 319,585 
$ 303,789 
$ 255,526 
Costs and Expenses:
 
 
 
Cost of goods sold
52,019 
47,311 
38,522 
Selling expense
58,884 
55,277 
47,832 
General and administrative expense
36,371 
35,110 
31,873 
Corporate overhead
38,609 
34,723 
29,926 
Depreciation and amortization
12,803 
11,081 
9,548 
Total cost and expenses
317,395 
287,884 
250,921 
Operating income
2,190 
15,905 
4,605 
Gain on acquisitions and divestitures
1,540 
656 
2,685 
Gain on settlement agreement, net
 
888 
12,261 
Legal settlement
(3,135)
 
 
Loss on early extinguishment of debt
 
(214)
(21,595)
Loss on impairment of long-lived assets
(296)
(440)
 
Interest expense
(22,585)
(21,610)
(21,070)
Loss before income taxes
(22,286)
(4,815)
(23,114)
Income tax benefit (expense)
(938)
(4,057)
3,514 
Net loss
(23,224)
(8,872)
(19,600)
General partner's interest for the period
3,608 
2,099 
911 
Limited partners' interest for the period
(26,832)
(10,971)
(20,511)
Net loss per limited partner unit (basic and diluted)
$ (0.88)
$ (0.41)
$ (0.98)
Weighted average number of limited partners' units outstanding (basic and diluted)
30,472 
26,582 
20,954 
Cemetery
 
 
 
Revenues:
 
 
 
Merchandise
143,044 
145,922 
118,936 
Services
59,176 
54,557 
46,388 
Investment and other
59,595 
54,624 
45,247 
Total revenues
261,815 
255,103 
210,571 
Costs and Expenses:
 
 
 
Cemetery expense
71,296 
64,672 
57,566 
Depreciation and amortization
7,766 
6,904 
5,336 
Operating income
35,479 
45,829 
29,442 
Funeral Home
 
 
 
Revenues:
 
 
 
Merchandise
26,722 
21,060 
18,922 
Services
31,048 
27,626 
26,033 
Total revenues
57,770 
48,686 
44,955 
Costs and Expenses:
 
 
 
Cost of goods sold
6,928 
6,659 
5,569 
Services
22,959 
20,470 
19,190 
Other
17,526 
12,581 
10,895 
Depreciation and amortization
3,257 
3,200 
3,036 
Operating income
$ 7,100 
$ 5,776 
$ 6,265 
Consolidated Statement of Partners' Capital (USD $)
In Thousands
Total
Outstanding Common Units
Common Limited Partners
General Partner
Beginning Balance at Dec. 31, 2012
$ 130,942 
$ 19,568 
$ 127,941 
$ 3,001 
Issuance of common units
38,419 
1,775 
38,419 
 
General partner contribution
3,718 
 
3,718 
 
Common unit awards under incentive plans
1,328 
34 
1,328 
 
Net loss
(19,600)
 
(20,511)
911 
Cash distributions
(52,053)
 
(49,880)
(2,173)
Ending Balance at Dec. 31, 2013
102,754 
21,377 
101,015 
1,739 
Issuance of common units
176,271 
7,546 
176,271 
 
Common unit awards under incentive plans
1,068 
169 
1,068 
 
Net loss
(8,872)
 
(10,971)
2,099 
Cash distributions
(62,836)
 
(60,015)
(2,821)
Unit distributions paid in kind
(2,775)
112 
(2,775)
 
Ending Balance at Dec. 31, 2014
205,610 
29,204 
204,593 
1,017 
Issuance of common units
80,976 
2,692 
80,976 
 
Common unit awards under incentive plans
1,516 
1,516 
 
Net loss
(23,224)
 
(26,832)
3,608 
Cash distributions
(77,512)
 
(72,902)
(4,610)
Unit distributions paid in kind
(5,820)
205 
(5,820)
 
Ending Balance at Dec. 31, 2015
$ 181,546 
$ 32,109 
$ 181,531 
$ 15 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Cash Flows From Operating Activities:
 
 
 
Net loss
$ (23,224)
$ (8,872)
$ (19,600)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
Cost of lots sold
13,103 
10,291 
8,019 
Depreciation and amortization
12,803 
11,081 
9,548 
Non-cash compensation expense
1,516 
1,068 
1,370 
Non-cash interest expense
2,949 
2,939 
2,303 
Gain on acquisitions and divestitures
(1,540)
(656)
(2,685)
Loss on early extinguishment of debt
 
214 
21,595 
Loss on impairment of long-lived assets
296 
440 
 
Changes in assets and liabilities:
 
 
 
Accounts receivable, net of allowance
(8,873)
(10,356)
(8,834)
Merchandise trust fund
(52,332)
(28,828)
(36,919)
Other assets
(2,383)
(2,798)
(563)
Deferred selling and obtaining costs
(13,747)
(9,797)
(11,681)
Deferred revenues
76,235 
52,710 
68,454 
Deferred taxes (net)
(13)
2,887 
(4,075)
Payables and other liabilities
(728)
(875)
8,145 
Net cash provided by operating activities
4,062 
19,448 
35,077 
Cash Flows From Investing Activities:
 
 
 
Cash paid for capital expenditures
(15,339)
(14,574)
(12,752)
Cash paid for acquisitions
(18,800)
(56,381)
(14,100)
Consideration for lease and management agreements
 
(53,000)
 
Proceeds from asset sales
 
297 
155 
Net cash used in investing activities
(34,139)
(123,658)
(26,697)
Cash Flows From Financing Activities:
 
 
 
Cash distributions
(77,512)
(62,836)
(52,053)
Proceeds from borrowings
148,295 
92,865 
269,502 
Repayments of debt
(111,034)
(98,140)
(239,932)
Proceeds from issuance of common units
75,156 
173,497 
38,377 
Fees paid related to early extinguishment of debt
 
 
(14,920)
Cost of financing activities
(76)
(2,950)
(5,125)
Net cash provided by (used in) financing activities
34,829 
102,436 
(4,151)
Net increase (decrease) in cash and cash equivalents
4,752 
(1,774)
4,229 
Cash and cash equivalents - Beginning of period
10,401 
12,175 
7,946 
Cash and cash equivalents - End of period
15,153 
10,401 
12,175 
Supplemental disclosure of cash flow information:
 
 
 
Cash paid during the period for interest
19,352 
18,796 
18,907 
Cash paid during the period for income taxes
4,294 
4,315 
3,891 
Non-cash investing and financing activities:
 
 
 
Acquisition of assets by financing
874 
387 
190 
Issuance of limited partner units for cemetery acquisition
 
 
3,718 
Acquisition of assets by assumption of directly related liability
$ 876 
$ 8,368 
$ 3,924 
GENERAL
GENERAL

1. GENERAL

Nature of Operations

StoneMor Partners L.P. (the “Partnership”) is a provider of funeral and cemetery products and services in the death care industry in the United States. As of December 31, 2015, the Partnership operated 307 cemeteries in 27 states and Puerto Rico, of which 276 are owned and 31 are operated under lease, management or operating agreements. The Partnership also owned and operated 105 funeral homes in 19 states and Puerto Rico.

Basis of Presentation

The consolidated financial statements included in this Form 10-K/A have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

The Partnership’s presentation of its deferred financing costs within its consolidated balance sheet has changed. These deferred costs were previously presented as under their own caption and are now presented as an offset to long-term debt using the caption, “Long-term debt, net of deferred financing cost.” Retrospective adjustment was made to the December 31, 2014 presentation of these deferred costs. This change in presentation has decreased the “Total assets” amount by $9.1 million and decreased “Total liabilities” by the same amount at December 31, 2014. There was no additional impact on other assets or any other previously reported amounts.

Certain amounts in the prior year’s financial statements have been reclassified to conform to the current year presentation.

The Partnership has revised its segment reporting and reporting units from prior presentations based on how it currently manages operations and makes business decisions. The Partnership now has two distinct reportable segments and reporting units, which are classified as Cemetery Operations and Funeral Homes, and are supported by corporate costs and expenses. Prior period balances and activities were adjusted to conform to this revised presentation.

Principles of Consolidation

The consolidated financial statements include the accounts of each of the Partnership’s wholly-owned subsidiaries. These statements also include the accounts of the merchandise and perpetual care trusts in which the Partnership has a variable interest and is the primary beneficiary. The Partnership operates 31 cemeteries under long-term lease, operating or management contracts. The operations of 16 of these managed cemeteries have been consolidated.

The Partnership operates 15 cemeteries under long-term leases and other agreements that do not qualify as acquisitions for accounting purposes, including 13 cemeteries related to the transaction with the Archdiocese of Philadelphia that closed in the second quarter of 2014. As a result, the Partnership did not consolidate all of the existing assets and liabilities related to these cemeteries. The Partnership has consolidated the existing assets and liabilities of the merchandise and perpetual care trusts associated with these cemeteries as variable interest entities since the Partnership controls and receives the benefits and absorbs any losses from operating these trusts. Under the long-term leases, and other agreements associated with these properties, which are subject to certain termination provisions, the Partnership is the exclusive operator of these cemeteries and earns revenues related to sales of merchandise, services, and interment rights, and incurs expenses related to such sales, including the maintenance and upkeep of these cemeteries. Upon termination of these contracts, the Partnership will retain all of the benefits and related contractual obligations incurred from sales generated during the contract period. The Partnership has also recognized the existing performance obligations that it assumed as part of these agreements.

Total revenues derived from the cemeteries under these agreements totaled approximately $53.5 million, $43.4 million and $33.9 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Summary of Significant Accounting Policies

Use of Estimates

The preparation of the Partnership’s consolidated financial statements in conformity with GAAP 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 consolidated financial statements, as well as the reported amounts of revenue and expense during the reporting periods. The Partnership’s consolidated financial statements are based on a number of significant estimates, including revenue and expense accruals, depreciation and amortization, merchandise trusts and perpetual care trusts asset valuation, allowance for cancellations, unit-based compensation, deferred contract revenues, deferred merchandise trust investment earnings, deferred selling and obtaining costs, assets and liabilities obtained via business combinations and income taxes. As a result, actual results could differ from those estimates.

 

Accounts Receivable, Net of Allowance

The Partnership sells pre-need cemetery contracts whereby the customer enters into arrangements for future merchandise and services prior to the time of need. These sales are usually made using interest-bearing installment contracts not to exceed 60 months. The interest income is recorded when the interest amount is considered realizable and collectible, which typically coincides with cash payment. Interest income is not recognized until payments are collected in accordance with the contract. At the time of a pre-need sale, the Partnership records an account receivable in an amount equal to the total contract value less unearned finance income and any cash deposit paid, net of an estimated allowance for customer cancellations. The Partnership recognizes an allowance for cancellation of these receivables based upon its historical experience, which is recorded as a reduction in accounts receivable and a corresponding offset to deferred revenues.

Management evaluates customer receivables for impairment on an individual contract basis based upon its historical experience, including the age of the receivable and the customer’s payment history. Since the Partnership’s receivables primarily relate to pre-need sales, the Partnership has not performed the service or fulfilled all of its obligations for the merchandise to which the receivable relates and, as such, no risk of loss exists regarding accounts receivable.

Cash and Cash Equivalents

The Partnership considers all highly liquid investments purchased with an original maturity of three months or less from the time they are acquired to be cash equivalents.

Cemetery Property

Cemetery property consists of developed and undeveloped cemetery property, constructed mausoleum crypts and lawn crypts and other cemetery property. Cemetery property is stated at cost or, upon acquisition of a business, at the fair value of the assets acquired.

Property and Equipment

Property and equipment is stated at cost or, upon acquisition of a business, at the fair value of the assets acquired and depreciated on a straight-line basis. Maintenance and repairs are charged to expense as incurred, whereas additions and major replacements are capitalized and depreciation is recorded over their estimated useful lives as follows:

 

Buildings and improvements    10 to 40 years
Furniture and equipment    3 to 10 years
Leasehold improvements    over the shorter of the term of the lease or the life of the asset

Merchandise Trusts

Pursuant to state law, a portion of the proceeds from pre-need sales of merchandise and services is put into trust (the “merchandise trust”) until such time that the Partnership meets the requirements for releasing trust principal, which is generally delivery of merchandise or performance of services. All investment earnings generated by the assets in the merchandise trusts (including realized gains and losses) are deferred until the associated merchandise is delivered or the services are performed (see
Note 7).

Perpetual Care Trusts

Pursuant to state law, a portion of the proceeds from the sale of cemetery property is required to be paid into perpetual care trusts. The perpetual care trust principal does not belong to the Partnership and must remain in this trust into perpetuity while interest and dividends may be released and used to defray cemetery maintenance costs, which are expensed as incurred. The Partnership consolidates the trust into its financial statements because the trust is considered a variable interest entity for which the Partnership is the primary beneficiary. Earnings from the perpetual care trusts are recognized in current cemetery revenues (see Note 8).

 

Inventories

Inventories are classified within other current assets on the Partnership’s consolidated balance sheet and include cemetery and funeral home merchandise valued at the lower of cost or net realizable value. Cost is determined primarily on a specific identification basis on a first-in, first-out basis. Inventories were approximately $9.7 million and $5.6 million at December 31, 2015 and 2014, respectively.

Impairment of Long-Lived Assets

The Partnership monitors the recoverability of long-lived assets, including cemetery property, property and equipment and other assets, based on estimates using factors such as current market value, future asset utilization, business and regulatory climate and future undiscounted cash flows expected to result from the use of the related assets, at a location level. The Partnership’s policy is to evaluate an asset for impairment when events or circumstances indicate that a long-lived asset’s carrying value may not be recovered. An impairment charge is recorded to write-down the asset to its fair value if the sum of future undiscounted cash flows is less than the carrying value of the asset.

Other-Than-Temporary Impairment of Trust Assets

The Partnership determines whether or not the impairment of a fixed maturity debt security is other-than-temporary by evaluating each of the following:

 

    Whether it is the Partnership’s intent to sell the security. If there is intent to sell, the impairment is considered to be other-than-temporary.

 

    If there is no intent to sell, the Partnership evaluates if it is not more likely than not that it will be required to sell the debt security before its anticipated recovery. If the Partnership determines that it is more likely than not that it will be required to sell an impaired investment before its anticipated recovery, the impairment is considered to be other-than-temporary.

The Partnership further evaluates whether or not all assets in the trusts have other-than-temporary impairments based upon a number of criteria including the severity of the impairment, length of time a security has been in a loss position, changes in market conditions and concerns related to the specific issuer.

If an impairment is considered to be other-than-temporary, the cost basis of the security is adjusted downward to its fair value.

For assets held in the perpetual care trusts, any reduction in the cost basis due to an other-than-temporary impairment is offset with an equal and opposite reduction in the perpetual care trust corpus and has no impact on earnings.

For assets held in the merchandise trusts, any reduction in the cost basis due to an other-than-temporary impairment is recorded in deferred revenue.

Goodwill

The Partnership tests goodwill for impairment at each year end by comparing its reporting units’ estimated fair values to carrying values. Because quoted market prices for the reporting units are not available, the Partnership’s management must apply judgment in determining the estimated fair value of these reporting units. The Partnership’s management uses all available information to make these fair value determinations, including the present values of expected future cash flows using discount rates commensurate with the risks involved in the Partnership’s assets and the available market data of the industry group. A key component of these fair value determinations is a reconciliation of the sum of the fair value calculations to the Partnership’s market capitalization. The observed market prices of individual trades of an entity’s equity securities (and thus its computed market capitalization) may not be representative of the fair value of the entity as a whole. Substantial value may arise from the ability to take advantage of synergies and other benefits that flow from control over another entity. Consequently, measuring the fair value of a collection of assets and liabilities that operate together in a controlled entity is different from measuring the fair value of that entity on a stand-alone basis. In most industries, including the Partnership’s, an acquiring entity typically is willing to pay more for equity securities that give it a controlling interest than an investor would pay for a number of equity securities representing less than a controlling interest. Therefore, once the above fair value calculations have been determined, the Partnership’s management also considers the inclusion of a control premium within the calculations. This control premium is judgmental and is based on, among other items, observed acquisitions in the Partnership’s industry. The resultant fair values calculated for the reporting units are compared to observable metrics on large mergers and acquisitions in the Partnership’s industry to determine whether those valuations appear reasonable in management’s judgment. Management will continue to evaluate goodwill at least annually, or when impairment indicators arise.

 

Deferred Revenues

Revenues from the sale of services and merchandise, as well as any investment income from the merchandise trust is deferred until such time that the services are performed or the merchandise is delivered.

In addition to amounts deferred on new contracts, and investment income and unrealized gains on our merchandise trust, deferred revenues includes deferred revenues from pre-need sales that were entered into by entities prior to the acquisition of those entities by the Partnership. The Partnership provides for a reasonable profit margin for these deferred revenues to account for the future costs of delivering products and providing services on pre-need contracts that the Partnership acquired through acquisition. These revenues and their associated costs are recognized when the related merchandise is delivered or services are performed and are presented on a gross basis on the consolidated statements of operations.

Cemetery Merchandise and Services Sales

The Partnership sells its merchandise and services on both a pre-need and at-need basis. Sales of at-need cemetery services and merchandise are recognized as revenue when the service is performed or merchandise is delivered.

Pre-need sales are usually made on an installment contract basis for a period not to exceed 60 months with payments of principal and interest required. For those contracts that do not bear a market rate of interest, the Partnership imputes such interest based upon the prime rate plus 150 basis points, which resulted in a rate of 4.75% for contracts entered into during the three years ended December 31, 2015, in order to segregate the principal and interest component of the total contract value.

At the time of a pre-need sale, the Partnership records an account receivable in an amount equal to the total contract value less unearned finance income and any cash deposit paid, net of an estimated allowance for customer cancellations. The revenue from both the sales and interest component is deferred. Interest revenue is recognized utilizing the effective interest method.

The allowance for customer cancellations is established based on management’s estimates of expected cancellations and historical experiences. Revenue from the sale of burial lots and constructed mausoleum crypts is deferred until such time that 10% of the sales price has been collected, at which time it is fully earned; revenues from the sale of unconstructed mausoleums are recognized using the percentage-of-completion method of accounting while revenues from cemetery merchandise and services are recognized once such merchandise is delivered (title has transferred to the customer and the merchandise is either installed or stored, at the direction of the customer, at the vendor’s warehouse or a third-party warehouse at no additional cost to us) or services are performed.

The Partnership defers certain pre-need cemetery and prearranged funeral direct obtaining costs that vary with and are primarily related to the acquisition of new pre-need cemetery and prearranged funeral business. Such costs are expensed as revenues are recognized.

Funeral Home Service and Insurance Policy Sales

Revenue from funeral home services is recognized as services are performed and merchandise is delivered. The Partnership’s funeral home operations also include revenues related to the sale of term and final expense whole life insurance. As an agent for these insurance sales, the Partnership earns and recognizes commission-related revenue streams from the sales of these policies.

Pursuant to state law, a portion of proceeds received from pre-need funeral service contracts is put into trust while amounts used to defray the initial administrative costs are not. All investment earnings generated by the assets in the trust (including realized gains and losses) are deferred until the associated merchandise is delivered or the services are performed. The balance of the amounts in these trusts is included within the merchandise trusts above.

Income Taxes

The Partnership is not subject to U.S. federal and most state income taxes. The partners of the Partnership are liable for income tax in regard to their distributive share of the Partnership’s taxable income. Such taxable income may vary substantially from net income reported in the accompanying consolidated financial statements. Certain corporate subsidiaries are subject to federal and state income tax. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and tax 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 Partnership records a valuation allowance against its deferred tax assets if it deems that it is more likely than not that some portion or all of the recorded deferred tax assets will not be realizable in future periods.

 

Net Income (Loss) per Common Unit

Basic net income (loss) attributable to common limited partners per unit is computed by dividing net income (loss) attributable to common limited partners, which is determined after the deduction of the general partner’s interest, by the weighted average number of common limited partner units outstanding during the period. Net income (loss) attributable to common limited partners is determined by deducting net income attributable to participating securities, if applicable and net income (loss) attributable to the general partner’s units. The general partner’s interest in net income (loss) is calculated on a quarterly basis based upon its units and incentive distributions to be distributed for the quarter, with a priority allocation of net income to the general partner’s incentive distributions, if any, in accordance with the partnership agreement, and the remaining net income (loss) allocated with respect to the general partner’s and limited partners’ ownership interests.

The Partnership presents net income (loss) per unit under the two-class method for master limited partnerships, which considers whether the incentive distributions of a master limited partnership represent a participating security when considered in the calculation of earnings per unit under the two-class method. The two-class method considers whether the partnership agreement contains any contractual limitations concerning distributions to the incentive distribution rights that would impact the amount of earnings to allocate to the incentive distribution rights for each reporting period. If distributions are contractually limited to the incentive distribution rights’ share of currently designated available cash for distributions as defined under the partnership agreement, undistributed earnings in excess of available cash should not be allocated to the incentive distribution rights. Under the two-class method, management of the Partnership believes the partnership agreement contractually limits cash distributions to available cash; therefore, undistributed earnings in excess of available cash are not allocated to the incentive distribution rights.

The following is a reconciliation of net income (loss) allocated to the common limited partners for purposes of calculating net income (loss) attributable to common limited partners per unit (in thousands, except unit data):

 

     Years Ended December 31,  
     2015      2014      2013  

Net loss

   $ (23,224    $ (8,872    $ (19,600

Less: Incentive distribution right (“IDR”) payments to general partner

     3,961         2,250       $ 1,296   
  

 

 

    

 

 

    

 

 

 

Net loss to allocate to general and limited partners

     (27,185      (11,122      (20,896

General partner’s interest excluding IDRs

     (353      (151      (385
  

 

 

    

 

 

    

 

 

 

Net loss attributable to common limited partners

   $ (26,832    $ (10,971    $ (20,511
  

 

 

    

 

 

    

 

 

 

Diluted net income (loss) attributable to common limited partners per unit is calculated by dividing net income (loss) attributable to common limited partners, less income allocable to participating securities, by the sum of the weighted average number of common limited partner units outstanding and the dilutive effect of unit appreciation rights and other awards, as calculated by the treasury stock or if converted methods, as applicable. These awards consist of common units issuable upon payment of an exercise price by the participant under the terms of the Partnership’s long-term incentive plan (see Note 13).

The following table sets forth the reconciliation of the Partnership’s weighted average number of common limited partner units used to compute basic net income (loss) attributable to common limited partners per unit with those used to compute diluted net income (loss) attributable to common limited partners per unit (in thousands):

 

     Years Ended December 31,  
     2015      2014      2013  

Weighted average number of common limited partner units - basic

     30,472         26,582         20,954   

Add effect of dilutive incentive awards (1)

     —           —           —     
  

 

 

    

 

 

    

 

 

 

Weighted average number of common limited partner units - diluted

     30,472         26,582         20,954   
  

 

 

    

 

 

    

 

 

 

 

(1) The diluted weighted average number of limited partners’ units outstanding presented on the consolidated statement of operations does not include 282,093 units, 164,709 units and 297,078 units for the years ended December 31, 2015, 2014 and 2013, respectively, as their effects would be anti-dilutive.

New Accounting Pronouncements

In the second quarter of 2014, the Financial Accounting Standards Board (“FASB”) issued Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which supersedes the revenue recognition requirements in “Topic 605 - Revenue Recognition” and most industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. During the third quarter of 2015, Update No. 2015-14, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2015-14”) was released, deferring the effective date of the amendments to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted, only as of an annual reporting period beginning after December 15, 2016. The Partnership will adopt the requirements of ASU 2014-09 upon its effective date of January 1, 2018, and is evaluating the potential impact of the adoption on its financial position, results of operations or related disclosures.

In the first quarter of 2015, the FASB issued Update No. 2015-02, “Consolidation (Topic 810)” (“ASU 2015-02”), which amends previous consolidation analysis guidance. ASU 2015-02 requires companies to consider revised consolidation criteria regarding limited partnerships and similar legal entities. The amendments are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early application is permitted. The Partnership will adopt the requirements of ASU 2015-02 upon its effective date of January 1, 2016, and it does not anticipate it having a material impact on its financial position, results of operations, and related disclosures.

In the second quarter of 2015, the FASB issued Update No. 2015-03, “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”), which changes the presentation of debt issuance costs. During the third quarter of 2015, Update No. 2015-15, “Interest—Imputation of Interest (Subtopic 835-30) (“ASU 2015-15”) was released clarifying the treatment of debt issuance costs associated with line-of-credit arrangements. ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. ASU 2015-15 allows the deferral and presentation of debt issuance costs pertaining to line-of-credit arrangements as an asset. The amendments in the update are effective for annual reporting periods beginning after December 15, 2015, including interim periods within those reporting periods. Early application is permitted. The Partnership has elected to early adopt the presentation change regarding its deferred financing cost within its consolidated balance sheets. These deferred financing costs were previously presented as a separate asset caption and are now presented as a direct reduction to long-term debt under the caption, “Long-term debt, net of deferred financing costs.” This change in presentation has decreased “Total assets” and “Total liabilities” by $9.1 million at December 31, 2014.

In the third quarter of 2015, the FASB issued Update No. 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). ASU 2015-16 requires that an acquirer recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments are effective for fiscal years beginning after December 15, 2015 and early application is permitted. The Partnership has elected to early adopt the requirements of ASU 2015-16 during the fourth quarter of 2015, and it did not have a material impact on its financial position, results of operations and related disclosures.

In the first quarter of 2016, the FASB issued Update No. 2016-01, “Financial Instruments (Subtopic 825-10)” (“ASU 2016-01”). The core principle of ASU 2016-01 is that all equity investments should be measured at fair value with changes in the fair value recognized through net income. The amendment is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted for the key aspects of the amendment. The Partnership will adopt the requirements of ASU 2016-01 upon its effective date of January 1, 2018, and is evaluating the potential impact of the adoption on its financial position, results of operations and related disclosures.

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS
RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

2. RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

Subsequent to the issuance of the Partnership’s 2015 consolidated financial statements, the Partnership determined that material adjustments were needed to correct certain accounting errors. Accordingly, the accompanying consolidated financial statements of the Partnership as of December 31, 2015 and 2014, and for each of the three years in the period ended December 31, 2015, and the related notes hereto, have been restated to correct these accounting errors (the “Restatement”). A summary of these accounting errors, and their effect on the Partnership’s consolidated financial statements is as follows:

 

  A. The Partnership allocates net loss to the General Partner and its limited partners for the purposes of determining the General Partner’s and limited partners’ capital accounts within “Partners’ capital”, and to calculate net loss per limited partner unit (basic and diluted). However, the historical allocation of the Partnership’s net losses did not appropriately consider available cash that had been (or will be) distributed to the separate class of nonvoting limited partner interest (the incentive distribution rights) held by the General Partner. While this misallocation had no impact on the Partnership’s consolidated net loss for each of the three years in the period ended December 31, 2015, the revised calculation to correctly allocate net losses increased the limited partners’ historical share of allocated net loss and decreased the General Partner’s historical share of allocated net loss. As a result, the accompanying consolidated statement of operations and consolidated statement of partners’ capital have been restated to increase the limited partners’ share of allocated net loss and decrease the General Partner’s share of allocated net loss by approximately $4.0 million, $2.3 million, $1.3 million for the years ended December 31, 2015, 2014, and 2013, respectively. Accordingly, the accompanying consolidated statement of partner’s capital has also been restated to decrease the limited partners’ share of partners’ capital, and increase the General Partner’s share of partners’ capital by approximately $10.2 million and $6.2 million as of December 31, 2015 and 2014, respectively.

 

  B. The Partnership had historically presented the cost component of its performance obligations as a liability referred to as “Merchandise liability” and the offset for these liabilities was recognized as a reduction in “Deferred cemetery revenues, net” in the Partnership’s consolidated balance sheet. Subsequent to the issuance of the Partnership’s 2015 consolidated financial statements, the Partnership determined that the correct presentation of these obligations is “Deferred revenues”, rather than a separate “Merchandise liability”. Accordingly, the accompanying consolidated balance sheet as of December 31, 2015 and 2014, has been restated to reclassify performance obligations of approximately $173.1 million and $150.2 million as of December 31, 2015 and 2014, respectively, from “Merchandise liability” to “Deferred revenues”. As part of this restatement, the Partnership also reclassified the amounts referred to as “Deferred cemetery revenues, net” in the previously reported consolidated balance sheets of approximately $637.5 million and $643.4 million, respectively, as of December 31, 2015 and 2014 to “Deferred revenues” in the accompanying consolidated balance sheets.

 

  C. The Partnership had historically presented revenue related to assumed obligations from acquisitions on a net basis in the Partnership’s consolidated statement of operations. However, subsequent to the issuance of the Partnership’s 2015 consolidated financial statements, the Partnership determined that the correct presentation of this revenue was on a gross basis. Accordingly, the accompanying consolidated statement of operations has been restated to present such revenue on a gross basis. This classification resulted in an increase in “Cemetery merchandise revenues” of approximately $5.1 million, $6.7 million, and $3.6 million in the years ended December 31, 2015, 2014, and 2013, respectively, an increase in “Cemetery services revenue” of approximately $0.6 million, $0.5 million, and $0.5 million, respectively, and an increase “Cost of goods sold” of approximately $5.7 million, $7.2 million, and $4.1 million in the years ended December 31, 2015, 2014, and 2013, respectively.

 

  D. The Partnership had historically presented its Goodwill and Intangible Assets in one line on the Partnership’s consolidated balance sheets. However, subsequent to the issuance of the Partnership’s 2015 consolidated financial statements, the Partnership determined that the presentation of its Goodwill should be reported separately. Accordingly, the accompanying consolidated balance sheet as of December 31, 2015 and 2014, has been restated to reclassify Goodwill and Intangible Assets of approximately $69.9 million and $67.2 million as of December 31, 2015, respectively, and approximately $58.8 million and $69.0 million as of December 31, 2014 from “Goodwill and intangible assets” to separate lines in the accompanying consolidated balance sheets.

 

  E. The Partnership had historically recorded funeral home land from acquisitions within “Cemetery property”. However, subsequent to the issuance of the Partnership’s 2015 consolidated financial statements, the Partnership determined that such Funeral home land should be recorded within “Property and equipment”. This adjustment resulted in a decrease of $11.8 million and $10.0 million in “Cemetery property” as of December 31, 2015 and 2014, respectively, and a corresponding increase in “Property and equipment”. Additionally, the Partnership had historically recorded deferred cemetery property within “Deferred cemetery revenues, net”. However, subsequent to the issuance of the Partnership’s 2015 consolidated financial statements, the Partnership determined that such amounts should have been recorded within “Cemetery property”. This adjustment resulted in an increase in “Cemetery Property” in the amount of $3.6 million and $2.8 million as of December 31, 2015 and 2014, respectively.

 

  F. The Partnership had historically recorded the obligation for certain of the Partnership’s outstanding phantom unit awards as liabilities. However, subsequent to the issuance of the Partnership’s 2015 consolidated financial statements, the Partnership determined that these awards are equity awards and should be classified as equity. Accordingly, the accompanying consolidated balance sheet as of December 31, 2015 and 2014, has been restated to adjust the awards as equity award, resulting in a $1.9 million increase to “Common limited partners’ interest” and a decrease for the same amount to “Accounts payable and accrued liabilities” as of December 31, 2015 and 2014.

 

  G. The Partnership had historically recognized incorrect amounts of investment revenues and expenses related to its Merchandise and perpetual care trusts on its consolidated statement of operations and was incorrectly tracking its perpetual care-trusting obligations on its consolidated balance sheets. Accordingly, the accompanying consolidated financial statements as of December 31, 2015 and 2014, and for the years ended December 31, 2015, 2014, and 2013 have been restated for these adjustments. The adjustments resulted in an increase in “Deferred revenues” of approximately $17.9 million and $16.4 million, a decrease in “Partners’ Capital” of approximately $25.4 million and $23.7 million, and an increase in “Other long-term liabilities” of approximately $7.5 million and $7.3 million as of December 31, 2015 and 2014, respectively. In addition, the correction of these accounting errors resulted in a decrease in “Investment and other” revenues of $0.2 million, $0.6 million, and $1.7 million and an increase in “Cost of goods sold” of $1.5 million, $1.3 million, and $0.5 million in the years ended December 31, 2015, 2014, and 2013, respectively.

 

  H. The Partnership had historically recognized incorrect amounts of revenue from deferred pre-acquisition contracts in its consolidated statement of operations based on inaccurate system inputs. However, subsequent to the issuance of the Partnership’s 2015 consolidated statement of operations, the Partnership determined that revenue recognition on such preacquisition revenue was understated. Accordingly, the accompanying consolidated financial statements for the years ended December 31, 2015, 2014, and 2013 have been restated to reflect the correction of the system inputs. The adjustments resulted in a decrease in “Deferred revenues” and an increase in “Partners’ Capital” of $16.5 million and $14.7 million as of December 31, 2015 and 2014, respectively. In addition, the correction of these accounting errors resulted in an increase in “Cemetery merchandise revenues” of $1.6 million, $2.2 million, and $1.2 million and an increase in “Cemetery services revenues” of $0.2 million in the years ended December 31, 2015, 2014, and 2013, respectively.

 

  I. Remaining adjustments principally relate to the recognitions accuracy and/or classification of certain amounts in “Deferred cemetery revenues, net”, “Merchandise liabilities”, and “Other current assets”, determined subsequent to the issuance of the Partnership’s 2015 consolidated financial statements. Accordingly, the accompanying consolidated financial statements as of December 31, 2015 and 2014, and for the years ended December 31, 2015, 2014, and 2013 have been restated for these adjustments. The adjustments resulted in a decrease of $1.9 million and an increase of $2.8 million in “Deferred revenues” as of December 31, 2015 and 2014, respectively, an increase in “Cemetery merchandise revenues” of $4.4 million, $4.7 million, and $3.5 million, an increase in “Cemetery services revenues” of $2.2 million, $2.0 million, and $1.7 million, and an increase in “Cost of goods sold” of $5.9 million, $5.1 million, and $6.1 million in the years ended December 31, 2015, 2014, and 2013, respectively.

 

  J. The Partnership calculated the effect on income taxes associated with the foregoing accounting errors and, as such, the accompanying statement of operations has been restated to recognize “Income tax benefit (expense)” of approximately $0.2 million, ($0.1) million, $1.2 million for the years ended December 31, 2015, 2014, and 2013, respectively. Additionally, the “Deferred tax assets” and “Deferred tax liability” within the consolidated balance sheet were restated by approximately $0.1 million as of December 31, 2015 and 2014.

The effect of these adjustments on the Partnership’s consolidated balance sheets, statements of operations and cash flows as of December 31, 2015 and 2014 and for the years ended December 31, 2015, 2014, and 2013 is summarized below for each affected caption:

 

         As of December 31,  
         2015      2014  
         As     Restatement     As      As     Restatement     As  
    Reference    Filed     Adjustments     Restated      Filed     Adjustments     Restated  
         (in thousands)  

Other current assets

  I    $ 18,863      $ 3,378      $ 22,241       $ 24,266      $ 4,876      $ 29,142   

Total current assets

       107,798        3,378        111,176         101,878        4,876        106,754   

Cemetery property

  E      342,639        (8,182     334,457         339,848        (7,189     332,659   

Property and equipment

  E      104,330        11,797        116,127         100,391        10,028        110,419   

Goodwill and intangible assets

  D      137,060        (137,060     —           127,826        (127,826     —     

Goodwill

  D      —          69,851        69,851         —          58,836        58,836   

Intangible assets

  D      —          67,209        67,209         —          68,990        68,990   

Deferred tax assets

  J      40        141        181         40        141        181   

Other assets

  I      15,069        1,098        16,167         3,136        1,223        4,359   

Total assets

       1,686,125        8,232        1,694,357         1,690,375        9,079        1,699,454   

Accounts payable and accrued liabilities

  F      31,875        (1,886     29,989         35,382        (1,886     33,496   

Total current liabilities

       35,818        (1,886     33,932         38,852        (1,886     36,966   

Deferred cemetery revenues, net

  B      637,536        (637,536     —           643,408        (643,408     —     

Merchandise liability

  B      173,097        (173,097     —           150,192        (150,192     —     

Deferred revenues

  B, E, G, H, I      —          815,421        815,421         —          800,288        800,288   

Deferred tax liabilities

  J      17,833        (86     17,747         17,708        84        17,792   

Other long-term liabilities

  G      13,960        7,548        21,508         10,059        7,345        17,404   

Total liabilities

       1,502,447        10,364        1,512,811         1,481,613        12,231        1,493,844   

General partner interest

  A, G, H, I, J      (10,038     10,053        15         (5,113     6,130        1,017   

Common limited partners’ interest

  A, F, G, H, I, J      193,716        (12,185     181,531         213,875        (9,282     204,593   

Total partners’ capital

       183,678        (2,132     181,546         208,762        (3,152     205,610   

Total liabilities and partners’ capital

     $ 1,686,125      $ 8,232      $ 1,694,357       $ 1,690,375      $ 9,079      $ 1,699,454   

 

        Year Ended December 31,  
        2015     2014     2013  
        As     Restatement     As     As     Restatement     As     As     Restatement     As  
    Reference   Filed     Adjustments     Restated     Filed     Adjustments     Restated     Filed     Adjustments     Restated  
        (in thousands)  

Cemetery revenues:

                   

Merchandise

  C, H, I   $ 131,862      $ 11,182      $ 143,044      $ 132,355      $ 13,567      $ 145,922      $ 110,673      $ 8,263      $ 118,936   

Services

  C, H, I     56,243        2,933        59,176        51,827        2,730        54,557        44,054        2,334        46,388   

Investment and other

  G     59,765        (170     59,595        55,217        (593     54,624        46,959        (1,712     45,247   

Total revenues

      305,640        13,945        319,585        288,085        15,704        303,789        246,641        8,885        255,526   

Cost of goods sold

  C, G, I     38,924        13,095        52,019        33,652        13,659        47,311        27,859        10,663        38,522   

Total cost and expenses

      304,300        13,095        317,395        274,225        13,659        287,884        240,258        10,663        250,921   

Operating income

      1,340        850        2,190        13,860        2,045        15,905        6,383        (1,778     4,605   

Loss before income taxes

      (23,136     850        (22,286     (6,860     2,045        (4,815     (21,336     (1,778     (23,114

Income tax benefit (expense)

  J     (1,108     170        (938     (3,913     (144     (4,057     2,304        1,210        3,514   

Net loss

      (24,244     1,020        (23,224     (10,773     1,901        (8,872     (19,032     (568     (19,600

General partner’s interest for the period

  A, G, H, I, J     (315     3,923        3,608        (155     2,254        2,099        (350     1,261        911   

Limited partners’ interest for the period

  A, G, H, I, J     (23,929     (2,903     (26,832     (10,618     (353     (10,971     (18,682     (1,829     (20,511

Net loss per limited partner unit (basic and diluted)

  A, G, H, I, J   $ (0.79   $ (0.09   $ (0.88   $ (0.40   $ (0.01   $ (0.41   $ (0.89   $ (0.09   $ (0.98

 

        Year Ended December 31,  
        2015     2014     2013  
        As     Restatement     As     As     Restatement     As     As     Restatement     As  
    Reference   Filed     Adjustments     Restated     Filed     Adjustments     Restated     Filed     Adjustments     Restated  
        (in thousands)  

Net loss

  G, H, I, J   $ (24,244   $ 1,020      $ (23,224   $ (10,773   $ 1,901      $ (8,872   $ (19,032   $ (568   $ (19,600

Changes in assets and liabilities:

                   

Other assets

  E, I     (7,193     4,810        (2,383     (3,179     381        (2,798     (2,177     1,614        (563

Deferred revenues

  B, E, G, H, I     78,676        (2,441     76,235        60,841        (8,131     52,710        72,708        (4,254     68,454   

Deferred taxes (net)

  J     157        (170     (13     2,743        144        2,887        (2,865     (1,210     (4,075

Payables and other liabilities

  G     2,491        (3,219     (728     (6,580     5,705        (875     3,727        4,418        8,145   

Net cash provided by operating activities

    $ 4,062      $ —        $ 4,062      $ 19,448      $ —        $ 19,448      $ 35,077      $ —        $ 35,077   

The Restatement adjustments affecting the consolidated statement of cash flows for the years ended December 31, 2015, 2014, and 2013 are included in the Partnership’s net loss from operations and offset by changes in operating assets and liabilities. There were no adjustments related to cash provided by (used in) investing and financing activities.

 

The table below summarizes the effects of the restatement adjustments on the Statement of Partners’ Capital balances for the years ended December 31, 2015, 2014, and 2013, including the effects of the cumulative restatement adjustments recorded to all periods prior to January 1, 2013:

 

            Common
Limited
Partners
    General
Partner
    Total     Common
Limited
Partners
    General
Partner
     Total     Common
Limited
Partners
    General
Partner
     Total  
     Reference     

As

Filed

   

Restatement

Adjustments

   

As

Restated

 
            (in thousands)  

Capital Balance at December 31, 2012

     A, F, G, H, I, J       $ 134,796      $ 386      $ 135,182      $ (6,855   $ 2,615       $ (4,240   $ 127,941      $ 3,001       $ 130,942   

Issuance of common units

     F         38,377        —          38,377        42        —           42        38,419        —           38,419   

Net loss

     A, G, H, I, J         (18,682     (350     (19,032     (1,829     1,261         (568     (20,511     911         (19,600

Capital Balance at December 31, 2013

     A, F, G, H, I, J         109,657        (2,137     107,520        (8,642     3,876         (4,766     101,015        1,739         102,754   

Issuance of common units

     F         176,558        —          176,558        (287     —           (287     176,271        —           176,271   

Net loss

     A, G, H, I, J         (10,618     (155     (10,773     (353     2,254         1,901        (10,971     2,099         (8,872

Capital Balance at December 31, 2014

     A, F, G, H, I, J         213,875        (5,113     208,762        (9,282     6,130         (3,152     204,593        1,017         205,610   

Net loss

     A, G, H, I, J         (23,929     (315     (24,244     (2,903     3,923         1,020        (26,832     3,608         (23,224

Capital Balance at December 31, 2015

     A, F, G, H, I, J       $ 193,716      $ (10,038   $ 183,678      $ (12,185   $ 10,053       $ (2,132   $ 181,531      $ 15       $ 181,546   
                       

 

ACQUISITIONS
ACQUISITIONS

3. ACQUISITIONS

2015 Acquisitions

During the year ended December 31, 2015, the Partnership acquired the following properties and related assets, net of certain assumed liabilities:

 

    One funeral home for cash consideration of $0.9 million on July 21, 2015;

 

    Three funeral homes and one cemetery for cash consideration of $5.7 million on August 6, 2015;

 

    Two cemeteries for cash consideration of $1.5 million on August 20, 2015;

 

    One funeral home for cash consideration of $5.0 million on August 31, 2015, and an additional $1.0 million paid in 5 annual installments beginning on the 1st anniversary of the closing date; and

 

    One cemetery and two funeral homes for cash consideration of $5.7 million on December 1, 2015.

The Partnership accounted for these transactions under the acquisition method of accounting. Accordingly, the Partnership evaluated the identifiable assets acquired and liabilities assumed at their respective acquisition date fair values. All other costs incurred associated with the acquisition of the assets noted were expensed as incurred. The following table presents the Partnership’s values assigned to the assets acquired and liabilities assumed in the acquisitions, based on their estimated fair values at the dates of the acquisition, which may be prospectively adjusted as additional information is received (in thousands):

 

Assets:

  

Accounts receivable

   $ 2,761   

Cemetery property

     5,249   

Property and equipment

     7,710   

Inventory

     53   

Merchandise trusts, restricted

     15,075   

Perpetual care trusts, restricted

     4,134   

Intangible assets

     406   
  

 

 

 

Total assets

     35,388   
  

 

 

 

Liabilities:

  

Deferred revenues

     21,032   

Perpetual care trust corpus

     4,134   

Other liabilities

     21   
  

 

 

 

Total liabilities

     25,187   
  

 

 

 

Fair value of net assets acquired

     10,201   
  

 

 

 

Consideration paid - cash

     18,800   

Deferred cash consideration

     876   
  

 

 

 

Total consideration paid

     19,676   
  

 

 

 

Gain on bargain purchase

   $ 1,540   
  

 

 

 

Goodwill from purchase

   $ 11,015   
  

 

 

 

The Partnership recorded goodwill of $1.1 million and $9.9 million in the Cemetery and Funeral Home reporting units, respectively, with regard to the properties acquired during the year ended December 31, 2015.

 

2014 Acquisitions

During the year ended December 31, 2014, the Partnership acquired the following properties and related assets, net of certain assumed liabilities:

 

    One cemetery for cash consideration of $0.2 million on January 16, 2014; and

 

    Two funeral homes for cash consideration of $2.4 million on December 4, 2014.

The Partnership accounted for these transactions under the acquisition method of accounting. Accordingly, the Partnership evaluated the identifiable assets acquired and liabilities assumed at their respective acquisition date fair values. All other costs incurred associated with the acquisition of the assets noted were expensed as incurred. The following table presents the Partnership’s final values assigned to the assets acquired and liabilities assumed in the acquisitions, based on their estimated fair values at the dates of the acquisition (in thousands):

 

Assets:

  

Accounts receivable

   $ 104   

Cemetery property

     470   

Property and equipment

     193   

Merchandise trusts, restricted

     2,685   

Perpetual care trusts, restricted

     691   

Other assets

     22   

Deferred tax assets

     87   

Non-compete agreement

     520   
  

 

 

 

Total assets

     4,772   
  

 

 

 

Liabilities:

  

Deferred revenues

     2,053   

Deferred tax liability

     641   

Perpetual care trust corpus

     691   

Other liabilities

     20   
  

 

 

 

Total liabilities

     3,405   
  

 

 

 

Fair value of net assets acquired

     1,367   
  

 

 

 

Consideration paid - cash

     2,581   
  

 

 

 

Total consideration paid

     2,581   
  

 

 

 

Gain on bargain purchase

   $ 412   
  

 

 

 

Goodwill from purchase

   $ 1,626   
  

 

 

 

The Partnership recorded goodwill of $1.6 million in the Funeral Home reporting unit with regard to the properties acquired and included in the table above during the year ended December 31, 2014.

In addition to the properties noted above, on June 10, 2014, the Partnership acquired twelve cemeteries and nine funeral homes and their related assets, net of certain assumed liabilities, in a single transaction for cash consideration of $53.8 million.

 

The Partnership accounted for this transaction under the acquisition method of accounting. Accordingly, the Partnership evaluated the identifiable assets acquired and liabilities assumed at their respective acquisition date fair values. All other costs incurred associated with the acquisition of the assets noted were expensed as incurred. The following table presents the Partnership’s final values assigned to the assets acquired and liabilities assumed in the acquisition, based on their estimated fair values at the date of the acquisition (in thousands):

 

Assets:

  

Accounts receivable

   $ 6,188   

Cemetery property

     25,799   

Property and equipment

     16,006   

Merchandise trusts, restricted

     31,534   

Perpetual care trusts, restricted

     16,913   

Intangible assets

     1,170   

Other assets

     178   
  

 

 

 

Total assets

     97,788   
  

 

 

 

Liabilities:

  

Deferred revenues

     33,475   

Deferred tax liability

     2,010   

Perpetual care trust corpus

     16,913   

Other liabilities

     63   
  

 

 

 

Total liabilities

     52,461   
  

 

 

 

Fair value of net assets acquired

     45,327   
  

 

 

 

Consideration paid

     53,800   
  

 

 

 

Goodwill from purchase

   $ 8,473   
  

 

 

 

The Partnership recorded goodwill of $6.1 million and $2.4 million in the Cemetery and Funeral Home reporting units, respectively, with regard to the properties acquired and included in the table above during the year ended December 31, 2014.

Agreements with the Archdiocese of Philadelphia

On May 28, 2014, certain subsidiaries of the Partnership (“Tenant”) and the Archdiocese of Philadelphia (“Landlord”) entered into a lease agreement (the “Lease”) and a management agreement (the “Management Agreement”), pursuant to which the Tenant will operate 13 cemeteries in Pennsylvania for a term of 60 years and allow the tenant to, among other things and subject to certain limitations, sell burial rights and all related merchandise and services. The Partnership joined the Lease and the Management Agreement as a guarantor of all of the Tenant’s obligations under this operating arrangement.

Under the terms of the Lease and Management Agreements:

 

    the Tenant paid $53.0 million to the Landlord at closing, and agreed to make aggregate future rental payments of $36.0 million in accordance with the following schedule:

 

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 Lease and Management Agreements may be terminated by the Landlord during the 11th year of the lease in its sole discretion, or by either party due to default or bankruptcy by the end of the 11th year of the lease, subject to certain limitations;

 

    lease payments for years 6 through 11 shall be deferred until the Landlord determines whether to continue or terminate the Lease during the 11th year of the Lease, or the Tenant terminates the Lease by the end of the 11th year of the lease due to default or bankruptcy. If the Lease is terminated for either reason noted, the lease payments for years 6 through 11 shall be forfeited by the Landlord. Otherwise, the deferred lease payments for years 6 through 11 shall be due and payable 30 days after the end of the 11th year of the lease. If the Landlord terminates the Lease during the 11th year of the Lease, it must repay the $53.0 million paid at closing by the Tenant. If the Lease is terminated for cause at anytime, the $53.0 million paid by the Tenant at closing is subject to repayment, subject to certain amortization and other limitations; and

 

    the Tenant also agreed to make additional rental payments equal to 51% of gross revenues generated from non-ordinary course revenues and property dispositions associated with the properties, less reasonable costs and expenses.

The Partnership accounted for this transaction as a contract-based intangible asset at the present value of the consideration, less the fair value of net assets received at the acquisition date, consisting of acquired accounts receivable. The Partnership also recognized an $8.4 million liability for the present value of the $36.0 million of lease payments to be made in future periods at a discount rate of 8.3%. The following table presents the assets acquired and liabilities assumed in the transaction based on their estimated fair values (in thousands):

 

Assets:

  

Accounts receivable

   $ 1,610   

Intangible asset

     59,758   
  

 

 

 

Total assets

     61,368   
  

 

 

 

Liabilities:

  

Obligation for lease and management agreements

     36,000   

Discount on obligation for lease and management agreements

     (27,632
  

 

 

 

Obligation for lease and management agreements, net

     8,368   
  

 

 

 

Total liabilities

     8,368   
  

 

 

 

Total net assets

   $ 53,000   
  

 

 

 

2013 Acquisitions

During the year ended December 31, 2013, the Partnership acquired the following properties and related assets, net of certain assumed liabilities:

 

    Six funeral homes on February 19, 2013 for cash consideration of $9.1 million, 159,635 common units with an estimated fair value at issuance of $3.6 million, a promissory note in the amount of $3.0 million that was payable on February 19, 2014and an additional $1.2 million in cash consideration to be paid in six annual installments beginning on February 19, 2014; and

 

    One cemetery for cash consideration of $5.0 million on August 1, 2013;

 

The Partnership accounted for these transactions under the acquisition method of accounting. Accordingly, the Partnership evaluated the identifiable assets acquired and liabilities assumed at their respective acquisition date fair values. All other costs incurred associated with the acquisition of the assets noted were expensed as incurred. The following table presents the Partnership’s final values assigned to the assets acquired and liabilities assumed in the acquisitions, based on their estimated fair values at the dates of the acquisition (in thousands):

 

Assets:

  

Accounts receivable

   $ 1,531   

Cemetery property

     3,900   

Property and equipment

     9,362   

Merchandise trusts, restricted

     10,314   

Perpetual care trusts, restricted

     5,888   

Non-compete agreements

     1,927   
  

 

 

 

Total assets

     32,922   
  

 

 

 

Liabilities:

  

Deferred revenues

     8,274   

Deferred tax liability

     701   

Perpetual care trust corpus

     5,888   

Other liabilities

     258   
  

 

 

 

Total liabilities

     15,121   
  

 

 

 

Fair value of net assets acquired

     17,801   
  

 

 

 

Consideration paid - cash

     14,100   

Consideration paid - units

     3,592   

Fair value of Notes Payable

     3,000   

Fair value of debt assumed for non-compete agreements

     924   
  

 

 

 

Total consideration paid

     21,616   
  

 

 

 

Gain on bargain purchase

   $ 2,530   
  

 

 

 

Goodwill from purchase

   $ 6,345   
  

 

 

 

The Partnership recorded goodwill of $6.3 million in the Funeral Home reporting unit with regard to the properties acquired and included in the table above during the year ended December 31, 2013.

The following data presents pro forma revenues, net income (loss) and basic and diluted net income (loss) per unit for the Partnership as if the acquisitions consummated during the years ended December 31, 2015 and 2014, including the related financings, had occurred as of January 1, 2014. The Partnership prepared these pro forma unaudited financial results for comparative purposes only; they may not be indicative of the results that would have occurred if the acquisitions consummated during the years ended December 31, 2015 and 2014 and the related financings had occurred on January 1, 2014 or the results that will be attained in future periods (in thousands, except per unit data; unaudited):

 

     Years Ended December 31,  
     2015      2014  

Revenue

   $ 324,657       $ 325,450   

Net loss

     (24,320      (6,287

Net loss per limited partner unit (basic and diluted)

   $ (.92    $ (.29

Since their respective dates of acquisition, the properties acquired in 2015 have contributed $2.1 million of revenue and $0.2 million of operating profit for the year ended December 31, 2015. The properties acquired in 2014 have contributed $43.9 million of revenue and $5.4 million of operating profit for the year ended December 31, 2015 and $19.3 million of revenue and $1.6 million of operating profit for the year ended December 31, 2014. The properties acquired in 2013 have contributed $6.6 million of revenue and $0.7 million of operating profit for the year ended December 31, 2015, $6.0 million of revenue and $0.7 million of operating profit for the year ended December 31, 2014 and $3.9 million of revenue and $0.1 million of operating profit for the year ended December 31, 2013.

 

During the year ended December 31, 2013, the Partnership recovered $18.4 million, net of legal fees, costs and contractual obligations, related to the settlement of claims from locations that it acquired in prior years. Of the amount recovered, $11.9 million was received in cash proceeds and $6.5 million was contributed to the related perpetual care and merchandise trusts. The Partnership recognized a gain on settlement agreement of $12.3 million for this transaction during the year ended December 31, 2013.

ACCOUNTS RECEIVABLE, NET OF ALLOWANCE
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE

4. ACCOUNTS RECEIVABLE, NET OF ALLOWANCE

Long-term accounts receivable, net, consisted of the following at the dates indicated (in thousands):

 

     December 31,  
     2015      2014  

Customer receivables

   $ 207,645       $ 194,537   

Unearned finance income

     (20,078      (20,360

Allowance for contract cancellations

     (23,985      (22,138
  

 

 

    

 

 

 

Accounts receivable, net of allowance

     163,582         152,039   

Less: current portion - net of allowance

     68,415         62,503   
  

 

 

    

 

 

 

Long-term portion - net of allowance

   $ 95,167       $ 89,536   
  

 

 

    

 

 

 

Activity in the allowance for contract cancellations is as follows (in thousands):

 

     Years Ended December 31,  
     2015      2014      2013  

Balance - beginning of period

   $ 22,138       $ 20,275       $ 17,933   

Provision for cancellations

     25,307         20,870         20,069   

Charge-offs - net

     (23,460      (19,007      (17,727
  

 

 

    

 

 

    

 

 

 

Balance - end of period

   $ 23,985       $ 22,138       $ 20,275   
  

 

 

    

 

 

    

 

 

 
CEMETERY PROPERTY
CEMETERY PROPERTY

5. CEMETERY PROPERTY

Cemetery property consists of the following at the dates indicated (in thousands):

 

     December 31,  
     2015      2014  

Cemetery land

   $ 253,955       $ 252,002   

Mausoleum crypts and lawn crypts

     80,502         80,657   
  

 

 

    

 

 

 

Cemetery property

   $ 334,457       $ 332,659   
  

 

 

    

 

 

 
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT

6. PROPERTY AND EQUIPMENT

Property and equipment consists of the following at the dates indicated (in thousands):

 

     December 31,  
     2015      2014  

Building and improvements

   $ 117,034       $ 108,178   

Furniture and equipment

     54,346         49,290   

Funeral home land

     11,797         10,028   
  

 

 

    

 

 

 

Property and equipment - gross

     183,177         167,496   

Less: accumulated depreciation

     (67,050      (57,077
  

 

 

    

 

 

 

Property and equipment, net of accumulated depreciation

   $ 116,127       $ 110,419   
  

 

 

    

 

 

 

 

Depreciation expense was $10.6 million, $8.9 million and $7.5 million for the years ended December 31, 2015, 2014 and 2013, respectively.

MERCHANDISE TRUSTS
MERCHANDISE TRUSTS

7. MERCHANDISE TRUSTS

At December 31, 2015 and 2014, the Partnership’s merchandise trusts consisted of investments in debt and equity marketable securities and cash equivalents, both directly as well as through mutual and investment funds. Certain assets related to 2015 acquisitions have not yet been received. Accordingly, a portion of the assets are shown in a single line item in the disclosures below as “Assets acquired via acquisition” and the cost basis and fair value of such assets are based upon preliminary estimates that the Partnership is required to make in accordance with Accounting Topic 805.

All of these investments are classified as Available for Sale and accordingly, all of the assets are carried at fair value. All of these investments are considered either Level 1 or Level 2 assets pursuant to the three-level hierarchy (see Note 15). There were no Level 3 assets.

The merchandise trusts are variable interest entities (VIE) for which the Partnership 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 Partnership may be required to fund this shortfall.

The Partnership included $8.2 million and $8.3 million of investments held in trust by the West Virginia Funeral Directors Association at December 31, 2015 and December 31, 2014, respectively in its merchandise trust assets. As required by law, the Partnership 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 recognized at their account value, which approximates fair value.

A reconciliation of the Partnership’s merchandise trust activities for the years ended December 31, 2015 and 2014 is presented below (in thousands):

 

     Years Ended December 31,  
     2015      2014  

Balance - beginning of period

   $ 484,820       $ 431,556   

Contributions

     80,693         87,271   

Distributions

     (50,987      (57,788

Interest and dividends

     21,859         21,827   

Capital gain distributions

     2,413         1,242   

Realized gains and losses

     13,941         14,857   

Other than temporary impairment

     (54,527      —     

Taxes

     (3,271      (2,543

Fees

     (3,296      (2,890

Unrealized change in fair value

     (26,969      (8,712
  

 

 

    

 

 

 

Balance - end of period

   $ 464,676       $ 484,820   
  

 

 

    

 

 

 

During the year ended December 31, 2015, purchases and sales of securities available for sale included in trust investments were approximately $554.7 million and $522.2 million, respectively. During the year ended December 31, 2014, purchases and sales of securities available for sale included in trust investments were approximately $430.5 million and $440.8 million, respectively.

 

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

 

                 Gross      Gross        
     Fair Value           Unrealized      Unrealized     Fair  

December 31, 2015

   Hierarchy Level    Cost      Gains      Losses     Value  

Short-term investments

   1    $ 35,150       $ —         $ —        $ 35,150   

Fixed maturities:

             

U.S. State and local government agency

   2      98         6         (3     101   

Corporate debt securities

   2      11,922         8         (546     11,384   

Other debt securities

   2      7,150         11         (7     7,154   
     

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

        19,170         25         (556     18,639   
     

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

   1      232,096         86         (10,713     221,469   

Mutual funds - equity securities

   1      139,341         69         (12,249     127,161   

Equity securities

   1      49,563         1,127         (2,474     48,216   

Other invested assets

   2      1,681         —           —          1,681   
     

 

 

    

 

 

    

 

 

   

 

 

 

Total managed investments

      $ 477,001       $ 1,307       $ (25,992   $ 452,316   
     

 

 

    

 

 

    

 

 

   

 

 

 

Assets acquired via acquisition

        4,185         —           —          4,185   

West Virginia Trust Receivable

        8,175         —           —          8,175   
     

 

 

    

 

 

    

 

 

   

 

 

 

            Total

      $ 489,361       $ 1,307       $ (25,992   $ 464,676   
     

 

 

    

 

 

    

 

 

   

 

 

 
                 Gross      Gross        
     Fair Value           Unrealized      Unrealized     Fair  

December 31, 2014

   Hierarchy Level    Cost      Gains      Losses     Value  

Short-term investments

   1    $ 52,521       $ —         $ —        $ 52,521   

Fixed maturities:

             

U.S. State and local government agency

   2      270         —           (1     269   

Corporate debt securities

   2      9,400         23         (447     8,976   

Other debt securities

   2      7,157         —           (18     7,139   
     

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

        16,827         23         (466     16,384   
     

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

   1      150,477         869         (8,666     142,680   

Mutual funds - equity securities

   1      167,353         12,568         (463     179,458   

Equity securities

   1      81,639         4,167         (5,507     80,299   

Other invested assets

   2      5,400         —           (241     5,159   
     

 

 

    

 

 

    

 

 

   

 

 

 

Total managed investments

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

 

 

    

 

 

    

 

 

   

 

 

 

West Virginia Trust Receivable

        8,319         —           —          8,319   
     

 

 

    

 

 

    

 

 

   

 

 

 

            Total

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

 

 

    

 

 

    

 

 

   

 

 

 

The contractual maturities of debt securities held within the merchandise trusts as of December 31, 2015 were as follows (in thousands):

 

     Less than      1 year through      6 years through      More than  

December 31, 2015

   1 year      5 years      10 years      10 years  

U.S. State and local government agency

   $ —         $ 23       $ 78       $ —     

Corporate debt securities

     —           8,152         3,232         —     

Other debt securities

     3,520         3,634         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

   $ 3,520       $ 11,809       $ 3,310       $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Temporary Declines in Fair Value

The Partnership evaluates declines in fair value below cost for each asset held in the merchandise trusts on a quarterly basis.

 

An aging of unrealized losses on the Partnership’s investments in debt and equity securities within the merchandise trusts at December 31, 2015 and December 31, 2014 is presented below:

 

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

December 31, 2015

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

U.S. State and local government agency

   $ —         $ —         $ 33       $ 3       $ 33       $ 3   

Corporate debt securities

     7,247         411         1,513         135         8,760         546   

Other debt securities

     2,883         7         —           —           2,883         7   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     10,130         418         1,546         138         11,676         556   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     121,777         6,938         36,682         3,775         158,459         10,713   

Mutual funds - equity securities

     58,467         10,994         5,465         1,255         63,932         12,249   

Equity securities

     21,480         2,275         649         199         22,129         2,474   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 211,854       $ 20,625       $ 44,342       $ 5,367       $ 256,196       $ 25,992   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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

December 31, 2014

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

U.S. State and local government agency

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

Corporate debt securities

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

Other debt securities

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

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

Mutual funds - equity securities

     4,147         463         —           —           4,147         463   

Equity securities

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

Other invested assets

     —           —           4,881         241         4,881         241   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

For all securities in an unrealized loss position, the Partnership evaluated the severity of the impairment and length of time that a security has been in a loss position and concluded the decline in fair value below the asset’s cost was temporary in nature. In addition, the Partnership is not aware of any circumstances that would prevent the future market value recovery for these securities.

Other-Than-Temporary Impairment of Trust Assets

The Partnership assesses its merchandise trust assets for other-than-temporary declines in fair value on a quarterly basis. During the year ended December 31, 2015, the Partnership determined that there were securities with an aggregate cost basis of approximately $196.8 million and an aggregate fair value of approximately $142.3 million, resulting in an impairment of $54.5 million, with such impairment considered to be other-than-temporary. During the year ended December 31, 2014, the Partnership determined that there were securities with an aggregate cost basis of approximately $0.9 million and an aggregate fair value of approximately $0.5 million, resulting in an impairment of $0.4 million, with such impairment considered to be other-than-temporary. Accordingly, the Partnership adjusted the cost basis of these assets to their fair value, with a corresponding adjustment to deferred revenues on the consolidated balance sheet. This adjustment to deferred revenues will be reflected within the Partnership’s consolidated statement of operations in future periods as the underlying merchandise is delivered or the underlying service is performed.

PERPETUAL CARE TRUSTS
PERPETUAL CARE TRUSTS

8. PERPETUAL CARE TRUSTS

At December 31, 2015 and 2014, the Partnership’s perpetual care trusts consisted of investments in debt and equity marketable securities and cash equivalents, both directly as well as through mutual and investment funds. Certain assets related to 2015 acquisitions have not yet been received. Accordingly, a portion of the assets are shown in a single line item in the disclosures below as “Assets acquired via acquisition” and the cost basis and fair value of such assets are based upon preliminary estimates that the Partnership is required to make in accordance with Accounting Topic 805.

All of these investments are classified as Available for Sale and accordingly, all of the assets are carried at fair value. All of these investments are considered either Level 1 or Level 2 assets pursuant to the three-level hierarchy (see Note 15). There were no Level 3 assets. The perpetual care trusts are VIEs for which the Partnership is the primary beneficiary.

 

A reconciliation of the Partnership’s perpetual care trust activities for the years ended December 31, 2015 and 2014 is presented below (in thousands):

 

     Years Ended December 31,  
     2015      2014  

Balance - beginning of period

   $ 345,105       $ 311,771   

Contributions

     15,919         34,332   

Distributions

     (15,003      (14,308

Interest and dividends

     18,019         15,044   

Capital gain distributions

     1,952         125   

Realized gains and losses

     12,323         (164

Other than temporary impairment

     (29,047      —     

Taxes

     (631      (654

Fees

     (2,163      (2,054

Unrealized change in fair value

     (38,670      1,013   
  

 

 

    

 

 

 

Balance - end of period

   $ 307,804       $ 345,105   
  

 

 

    

 

 

 

During the year ended December 31, 2015, purchases and sales of securities available for sale included in trust investments were approximately $359.3 million and $349.0 million, respectively. During the year ended December 31, 2014, purchases and sales of securities available for sale included in trust investments were approximately $157.5 million and $165.7 million, respectively.

 

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

 

                   Gross      Gross        
     Fair Value             Unrealized      Unrealized     Fair  

December 31, 2015

   Hierarchy Level      Cost      Gains      Losses     Value  

Short-term investments

     1       $ 36,618       $ —         $ —        $ 36,618   

Fixed maturities:

             

U.S. State and local government agency

     2         126         14         —          140   

Corporate debt securities

     2         22,837         57         (845     22,049   

Other debt securities

     2         36         —           (1     35   
     

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

        22,999         71         (846     22,224   
     

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

     1         184,866         35         (7,180     177,721   

Mutual funds - equity securities

     1         68,079         1,054         (1,713     67,420   

Equity securities

     1         2,319         636         (7     2,948   

Other invested assets

     2         473         1         (162     312   
     

 

 

    

 

 

    

 

 

   

 

 

 

Total managed investments

      $ 315,354       $ 1,797       $ (9,908   $ 307,243   
     

 

 

    

 

 

    

 

 

   

 

 

 

Assets acquired via acquisition

        561         —           —          561   
     

 

 

    

 

 

    

 

 

   

 

 

 

Total

      $ 315,915       $ 1,797       $ (9,908   $ 307,804   
     

 

 

    

 

 

    

 

 

   

 

 

 
                   Gross      Gross        
     Fair Value             Unrealized      Unrealized     Fair  

December 31, 2014

   Hierarchy Level      Cost      Gains      Losses     Value  

Short-term investments

     1       $ 26,644       $ —         $ —        $ 26,644   

Fixed maturities:

             

U.S. Government and federal agency

     1         100         16         —          116   

U.S. State and local government agency

     2         78         1         —          79   

Corporate debt securities

     2         24,275         104         (913     23,466   

Other debt securities

     2         371         —           —          371   
     

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

        24,824         121         (913     24,032   
     

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

     1         128,735         379         (5,220     123,894   

Mutual funds - equity securities

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

Equity securities

     1         30,617         14,704         (247     45,074   

Other invested assets

     2         25         —           —          25   
     

 

 

    

 

 

    

 

 

   

 

 

 

Total

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

 

 

    

 

 

    

 

 

   

 

 

 

The contractual maturities of debt securities held in the perpetual care trusts as of December 31, 2015 were as follows (in thousands):

 

     Less
than
     1 year
through
     6 years
through
     More
than
 

December 31, 2015

   1 year      5 years      10 years      10 years  

U.S. State and local government agency

     —           112         28         —     

Corporate debt securities

     202         16,138         5,650         59   

Other debt securities

     35         —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

   $ 237       $ 16,250       $ 5,678       $ 59   
  

 

 

    

 

 

    

 

 

    

 

 

 

Temporary Declines in Fair Value

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

 

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

 

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

December 31, 2015

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

U.S. State and local government agency

   $ —         $ —         $ 112       $ —         $ 112       $ —     

Corporate debt securities

     12,482         535         4,505         310         16,987         845   

Other debt securities

     35         1         —           —           35         1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     12,517         536         4,617         310         17,134         846   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     81,215         4,263         50,774         2,917         131,989         7,180   

Mutual funds - equity securities

     16,514         1,363         4,308         350         20,822         1,713   

Equity securities

     488         6         1,137         1         1,625         7   

Other invested assets

     —           —           315         162         315         162   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 110,734       $ 6,168       $ 61,151       $ 3,740       $ 171,885       $ 9,908   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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

December 31, 2014

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

Corporate debt securities

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

Other debt securities

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

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

Mutual funds - equity securities

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

Equity securities

     3,866         245         620         2         4,486         247   

Other invested assets

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

For all securities in an unrealized loss position, the Partnership evaluated the severity of the impairment and length of time that a security has been in a loss position and concluded the decline in fair value below the asset’s cost was temporary in nature. In addition, the Partnership is not aware of any circumstances that would prevent the future market value recovery for these securities.

Other-Than-Temporary Impairment of Trust Assets

The Partnership assesses its perpetual care trust assets for other-than-temporary declines in fair value on a quarterly basis. During the year ended December 31, 2015, the Partnership determined that there were securities with an aggregate cost basis of approximately $107.7 million and an aggregate fair value of approximately $78.7 million, resulting in an impairment of $29.0 million, with such impairment considered to be other-than-temporary. During the year ended December 31, 2014, the Partnership determined that there were securities with an aggregate cost basis of approximately $1.4 million and an aggregate fair value of approximately $0.8 million, resulting in an impairment of $0.6 million, with such impairment considered to be other-than-temporary. Accordingly, the Partnership adjusted the cost basis of these assets to their current value and offset this change against the liability for perpetual care trust corpus.

GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS

9. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Partnership has revised its reporting units from prior presentations based on how it currently manages the operating segments. There are now two reporting units, which are classified as Cemetery Operations and Funeral Homes. The Partnership has recorded goodwill of approximately $69.9 million and $58.8 million as of December 31, 2015 and 2014, respectively. This amount represents the excess of the purchase price over the fair value of identifiable net assets acquired (see Note 3).

 

A rollforward of goodwill by reportable segment is as follows (in thousands):

 

     Cemeteries      Funeral Homes      Total  

Balance at December 31, 2013

   $ 18,122       $ 30,615       $ 48,737   

Goodwill from acquisitions during 2014

     6,064         4,035         10,099   
  

 

 

    

 

 

    

 

 

 

Balance at December 31, 2014

     24,186         34,650         58,836   

Goodwill from acquisitions during 2015

     1,134         9,881         11,015   
  

 

 

    

 

 

    

 

 

 

Balance at December 31, 2015

   $ 25,320       $ 44,531       $ 69,851   
  

 

 

    

 

 

    

 

 

 

The Partnership tests goodwill for impairment at each year end by comparing its reporting units’ estimated fair values to carrying values (see Note 1). There were no goodwill impairments recognized by the Partnership during the years ended December 31, 2015, 2014 and 2013. Management will continue to evaluate goodwill at least annually or when impairment indicators arise.

Intangible Assets

The Partnership has intangible assets with finite lives recognized in connection with acquisitions and long-term lease, management and operating agreements. The Partnership amortizes these intangible assets over their estimated useful lives. The following table reflects the components of intangible assets at December 31, 2015 and 2014 (in thousands):

 

     December 31, 2015      December 31, 2014  
     Gross Carrying      Accumulated     Net Intangible      Gross Carrying      Accumulated     Net Intangible  
     Amount      Amortization     Asset      Amount      Amortization     Asset  

Lease and management agreements

   $ 59,758       $ (1,577   $ 58,181       $ 59,758       $ (581   $ 59,177   

Underlying contract value

     6,239         (1,014     5,225         6,239         (858     5,381   

Non-compete agreements

     5,656         (3,112     2,544         5,250         (2,126     3,124   

Other intangible assets

     1,439         (180     1,259         1,439         (131     1,308   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total intangible assets

   $ 73,092       $ (5,883   $ 67,209       $ 72,686       $ (3,696   $ 68,990   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Amortization expense for intangible assets was $2.2 million, $2.1 million, and $2.0 million for the years ended December 31, 2015, 2014, and 2013 respectively. The following is estimated amortization expense related to intangible assets with finite lives for the five years subsequent to December 31, 2015 (in thousands):

 

2016

   $ 2,181   

2017

   $ 1,956   

2018

   $ 1,708   

2019

   $ 1,440   

2020

   $ 1,266   
LONG-TERM DEBT
LONG-TERM DEBT

10. LONG-TERM DEBT

Total debt consists of the following at the dates indicated (in thousands):

 

     December 31,  
     2015      2014  

Credit Facility:

     

Working Capital Draws

   $ 105,000       $ 85,902   

Acquisition Draws

     44,500         25,000   

7.875% Senior Notes, due June 2021

     172,186         171,783   

Notes payable - acquisition debt

     687         861   

Notes payable - acquisition non-competes

     1,629         2,451   

Insurance and vehicle financing

     2,336         1,632   

Less deferred financing costs, net of accumulated amortization

     (7,499      (9,089
  

 

 

    

 

 

 

Total debt

     318,839         278,540   

Less current maturities

     (2,440      (2,251
  

 

 

    

 

 

 

Total long-term debt

   $ 316,399       $ 276,289   
  

 

 

    

 

 

 

 

Credit Facility

The Partnership is a party to the Fourth Amended and Restated Credit Agreement (the “Credit Agreement”) which provides for a single revolving credit facility of $180.0 million (the “Credit Facility”) maturing on December 19, 2019. Additionally the Credit Agreement provides for an uncommitted ability to increase the Credit Facility by an additional $70.0 million. The Partnership’s obligations under the Credit Facility are secured by substantially all of the assets of the Partnership, excluding those held in trust. Borrowings under the Credit Facility are classified as either acquisition draws or working capital draws. Acquisition draws may be utilized to finance permitted acquisitions, the purchase and construction of mausoleums and related costs or the net amount of merchandise trust deposits. Working capital draws may be utilized to finance working capital requirements, capital expenditures and for other general corporate purposes. The amount of the Credit Facility that is available for working capital draws is subject to a borrowing formula equal to 85% of eligible accounts receivable, as defined within the Credit Agreement. At December 31, 2015, the amount available under the Credit Facility for working capital advances under this limit was $139.0 million.

Each individual acquisition draw is subject to equal quarterly amortization of the principal amount, with annual principal payments comprised of ten percent of the related advance amount, commencing on the second anniversary of such advance, with the remaining principal due on December 19, 2019, subject to certain mandatory prepayment requirements. Up to $10.0 million of the Credit Facility may be in the form of standby letters of credit, of which there were none outstanding at December 31, 2015 and 2014.

Borrowings under the Credit Facility bear interest, at the Partnership’s election, at either an adjusted LIBOR rate plus an applicable margin between 2.25% and 4.00% per annum or the base rate (which is the higher of the bank’s prime rate, the Federal funds rate plus 0.5% or one-month LIBOR plus 1.00%) plus an applicable margin between 1.25% and 3.00% per annum. The Partnership is also required to pay a fee on the unused portion of the Credit Facility at a rate between 0.375% and 0.8% per annum, which is included within interest expense on the Partnership’s consolidated statements of operations. At December 31, 2015, the weighted average interest rate on outstanding borrowings under the Credit Facility was 3.8%.

The Credit Agreement contains customary covenants that limit the Partnership’s ability to incur additional indebtedness, grant liens, make loans or investments, make cash distributions if a default exists or would result from the distribution, merger or consolidation with other persons, or engage in certain asset dispositions including the sale of all or substantially all of its assets. The Partnership was in compliance with these covenants as of December 31, 2015. The Credit Agreement also requires the Partnership to maintain:

 

    Consolidated EBITDA (as defined in the Credit Agreement), calculated over a period of four consecutive fiscal quarters, to be no less than the sum of (i) $80.0 million plus (ii) 80% of the aggregate Consolidated EBITDA for each permitted acquisition completed after June 30, 2014;

 

    the ratio of Consolidated EBITDA (as defined in the Credit Agreement) to Consolidated Debt Service (as defined in the Credit Agreement), calculated over a period of four fiscal quarters, or the Consolidated Debt Service Coverage Ratio, of not less than 2.50 to 1.00 for any period; and

 

    the ratio of Consolidated Funded Indebtedness (as defined in the Credit Agreement) to Consolidated EBITDA (as defined in the Credit Agreement), calculated over a period of four fiscal quarters, or the Consolidated Leverage Ratio, of not greater than 4.00 to 1.00 for any period.

At December 31, 2015, the Partnership’s Consolidated Leverage Ratio and the Consolidated Debt Service Coverage Ratio were 3.23 and 4.62, respectively.

Senior Notes

On May 28, 2013, the Partnership issued $175.0 million aggregate principal amount of 7.875% Senior Notes due 2021 (the “Senior Notes”). The Partnership 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. The net proceeds from the offering were used to retire a $150.0 million aggregate principal amount of 10.25% Senior Notes due 2017 and the remaining proceeds were used for general corporate purposes. The Senior Notes were issued at 97.832% of par resulting in gross proceeds of $171.2 million with an original issue discount of approximately $3.8 million. The Partnership incurred debt issuance costs and fees of approximately $4.6 million. These costs and fees are deferred and will be amortized over the life of the Senior Notes. The Senior Notes mature on June 1, 2021.

At any time prior to June 1, 2016, the Partnership may redeem up to 35% of the aggregate principal amount of the Senior Notes with the net cash proceeds of certain equity offerings at the redemption price of 107.875%, plus accrued and unpaid interest, if any, to the redemption date, provided that (i) at least 65% of the aggregate principal amount of the Senior Notes remain outstanding and (ii) the redemption occurs within 180 days of the closing date of such equity offering. At any time on or after June 1, 2016, we may redeem the Senior Notes, in whole or in part, at the redemption prices (expressed as percentages of the principal amount) set forth below, together with accrued and unpaid interest, if any, to the redemption date, if redeemed during the 12-month period beginning June 1 of the years indicated:

 

Year

   Percentage  

2016

     105.906

2017

     103.938

2018

     101.969

2019 and thereafter

     100.000

In addition, at any time prior to June 1, 2016, the Partnership may also redeem all or any portion of the Senior Notes, at a redemption price equal to 100% of the principal amount of the Senior Notes redeemed, plus the Applicable Premium (as defined in the Indenture), including accrued and unpaid interest.

Subject to certain exceptions, upon the occurrence of a Change of Control (as defined in the Indenture), each holder of the Senior Notes will have the right to require the Partnership to purchase that holder’s Senior Notes for a cash price equal to 101% of the principal amounts to be purchased, plus accrued and unpaid interest.

The Senior Notes are jointly and severally guaranteed by certain of our material subsidiaries. The Indenture governing the Senior Notes contains covenants, including limitations of the Partnership’s ability to incur additional indebtedness and liens, make certain dividends, distributions, redemptions or investments, enter into certain transactions with affiliates, make certain asset sales, and engage in certain mergers, consolidations or sales of all or substantially all of the Partnership’s assets. As of December 31, 2015, the Partnership was in compliance with these covenants.

INCOME TAXES
INCOME TAXES

11. INCOME TAXES

The Partnership is not subject to U.S. federal and most state income taxes. The partners of the Partnership are liable for income tax in regard to their distributive share of the Partnership’s taxable income. Such taxable income may vary substantially from net income reported in the accompanying consolidated financial statements. Certain corporate subsidiaries are subject to federal and state income tax. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and tax 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 Partnership records a valuation allowance against its deferred tax assets if it deems that it is more likely than not that some portion or all of the recorded deferred tax assets will not be realizable in future periods.

Income tax expense (benefit) for the years ended December 31, 2015, 2014 and 2013 consisted of the following (in thousands):

 

     Years Ended December 31,  
     2015      2014      2013  

Current provision:

        

State

   $ 723       $ 869       $ 685   

Federal

     —           —           —     

Foreign

     229         302         (125
  

 

 

    

 

 

    

 

 

 

Total

     952         1,171         560   
  

 

 

    

 

 

    

 

 

 

Deferred provision:

        

State

     (368      351         187   

Federal

     230         2,535         (4,261

Foreign

     124         —           —     
  

 

 

    

 

 

    

 

 

 

Total

     (14      2,886         (4,074
  

 

 

    

 

 

    

 

 

 

Total income tax expense (benefit)

   $ 938       $ 4,057       $ (3,514
  

 

 

    

 

 

    

 

 

 

 

A reconciliation of the federal statutory tax rate to the Partnership’s effective tax rate is as follows (in thousands):

 

     Years Ended December 31,  
     2015     2014     2013  

Computed tax provision (benefit) at the applicable statutory tax rate

     35.0     35.0     35.0

State and local taxes net of federal income tax benefit

     -1.6     -12.2     -1.5

Tax exempt (income) loss

     -4.5     -21.4     -6.7

Change in valuation allowance

     -65.6     -223.3     -37.7

Partnership earnings not subject to tax

     32.4     137.3     11.0

Permanent differences

     0.2     1.3     14.4

Other

     -0.1     -1.0     0.7
  

 

 

   

 

 

   

 

 

 

Income tax expense (benefit)

     -4.2     -84.3     15.2
  

 

 

   

 

 

   

 

 

 

Significant components of the deferred tax assets and liabilities were as follows (in thousands):

 

     December 31,  
     2015      2014  

Deferred tax assets:

     

Prepaid expenses

   $ 7,626       $ 5,373   

State net operating loss

     14,260         13,015   

Federal net operating loss

     92,688         79,201   

Other

     67         (831

Valuation allowance

     (76,468      (58,749
  

 

 

    

 

 

 

Total deferred tax assets

     38,173         38,009   
  

 

 

    

 

 

 

Deferred tax liabilities:

     

Property, plant and equipment

     9,290         8,058   

Deferred revenue related to future revenues and accounts receivable

     37,241         38,623   

Deferred revenue related to cemetery property

     9,208         8,939   
  

 

 

    

 

 

 

Total deferred tax liabilities

     55,739         55,620   
  

 

 

    

 

 

 

Net deferred tax liabilities

   $ 17,566       $ 17,611   
  

 

 

    

 

 

 

Net deferred tax assets and liabilities were classified on the consolidated balance sheets as follows:

 

Deferred tax assets

   $ 181       $ 181   
  

 

 

    

 

 

 

Noncurrent assets

     181         181   
  

 

 

    

 

 

 

Deferred tax assets

     37,992         37,828   

Deferred tax liabilities

     55,739         55,620   
  

 

 

    

 

 

 

Noncurrent liabilities

     17,747         17,792   
  

 

 

    

 

 

 

Net deferred tax liabilities

   $ 17,566       $ 17,611   
  

 

 

    

 

 

 

At December 31, 2015, the Partnership had available approximately less than $0.1 million of alternative minimum tax credit carryforwards, which are available indefinitely, and $264.5 million of federal net operating loss carryforwards, which will begin to expire in 2017 and $321.8 million in state net operating loss carryforwards, a portion of which expires annually.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. At December 31, 2015, based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Partnership will realize a partial benefit of these deductible differences. The amount of deferred tax assets considered realizable could be reduced in the future if estimates of future taxable income during the carryforward period are reduced.

 

In accordance with applicable accounting standards, the Partnership recognizes only the impact of income tax positions that, based upon their merits, are more likely than not to be sustained upon audit by a taxing authority. To evaluate its current tax positions in order to identify any material uncertain tax positions, the Partnership developed a policy of identifying and evaluating uncertain tax positions that considers support for each tax position, industry standards, tax return disclosures and schedules and the significance of each position. It is the Partnership’s policy to recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense. At December 31, 2015 and 2014, the Partnership had no material uncertain tax positions.

The Partnership 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 2012 forward.

DEFERRED REVENUES
DEFERRED REVENUES

12. DEFERRED REVENUES

The Partnership defers revenues and all direct costs associated with the sale of pre-need cemetery merchandise and services until the merchandise is delivered or the services are performed. The Partnership recognizes deferred merchandise and service revenues as deferred revenues within long-term liabilities on its consolidated balance sheet. The Partnership recognizes deferred direct costs associated with pre-need merchandise and service revenues as deferred selling and obtaining costs within long-term assets on its consolidated balance sheet. The Partnership also defers the costs to obtain new pre-need cemetery and new prearranged funeral business as well as the investment earnings on the prearranged services and merchandise trusts (see Note 1).

At December 31, 2015 and 2014, deferred revenues, consisted of the following (in thousands):

 

     December 31,  
     2015      2014  

Deferred contract revenues

   $ 759,812       $ 693,287   

Deferred merchandise trust revenue

     80,294         104,717   

Deferred merchandise trust unrealized gains (losses)

     (24,685      2,284   
  

 

 

    

 

 

 

Deferred revenues

   $ 815,421       $ 800,288   
  

 

 

    

 

 

 

Deferred selling and obtaining costs

   $ 111,542       $ 97,795   
LONG-TERM INCENTIVE AND RETIREMENT PLANS
LONG-TERM INCENTIVE AND RETIREMENT PLANS

13. LONG-TERM INCENTIVE AND RETIREMENT PLANS

2014 Long-Term Incentive Plan

During the year ended December 31, 2014, the General Partner’s Board of Directors (the “Board”) and the Partnership’s unitholders approved a Long-Term Incentive Plan (“2014 LTIP”). The compensation committee of the Board (the “Compensation Committee”) administers the 2014 LTIP. The 2014 LTIP permits the grant of awards, which may be in the form of phantom units, restricted units, unit appreciation rights (“UAR”), or unit options, including performance factors for each, covering an aggregate of 1,500,000 common units, a number that the Board may increase by up to 100,000 common units per year. At December 31, 2015, the estimated number of common units to be issued upon vesting and exercise of outstanding rights under this plan was 102,661, including management’s estimated amounts for awards with performance factors. A cumulative number of 14,455 common units have been issued, leaving 1,382,884 common units available for future issuance under the plan, assuming no increases by the Board.

Phantom Unit Awards

Phantom units represent rights to receive a common unit or an amount of cash, or a combination of either, based upon the value of a common unit. Phantom units become payable, in cash or common units, at the Partnership’s election, upon the separation of directors and executives from service or upon the occurrence of certain other events specified in the underlying agreements. Phantom units are subject to terms and conditions determined by the Compensation Committee, which may include vesting restrictions. In tandem with phantom unit grants, the compensation committee may grant distribution equivalent rights (“DERs”), which are the right to receive an amount in cash or common units equal to the cash distributions made by the Partnership with respect to common unit during the period that the underlying phantom unit is outstanding. All phantom units outstanding under the 2014 LTIP at December 31, 2015 contain tandem DERs.

 

The following table sets forth the 2014 LTIP phantom unit award activity for the years ended December 31, 2015, and 2014, respectively:

 

     Years Ended December 31,  
     2015      2014  

Outstanding, beginning of period

     2,189         —     

Granted (1)

     122,154         2,189   

Settled in common units or cash (1)

     (14,455      —     

Performance vesting forfeiture

     (7,227      —     
  

 

 

    

 

 

 

Outstanding, end of period (2)

     102,661         2,189   
  

 

 

    

 

 

 

 

(1) The weighted-average grant date fair value for the unit awards on the date of grant was $26.94 and $26.27 for the years ended December 31, 2015 and 2014, respectively. The intrinsic values of unit awards vested during the years ended December 31, 2015 and 2014 were $0.6 million and $0.1 million, respectively.
(2) Based on the closing price of the common units on December 31, 2015, the estimated intrinsic value of the outstanding unit awards was $2.7 million at December 31, 2015.

2004 Long-Term Incentive Plan

The Compensation Committee administers the Partnership’s 2004 Long-Term Incentive Plan (“2004 LTIP”). The 2004 LTIP permitted the grant of awards, which may be in the form of phantom units, restricted units, unit appreciation rights (“UAR”), or unit options. At December 31, 2015, the estimated number of common units to be issued upon vesting and exercise of outstanding rights under this plan was 187,328, based upon the closing price of our common units at December 31, 2015. A cumulative number of 626,188 common units have been issued under the plan. There were no phantom units, restricted units, UARs and unit options available for grant under the 2004 LTIP at December 31, 2015 because the plan expired in 2014.

Phantom Unit Awards

Phantom unit awards granted under the 2004 plan included tandem DERs. These DERs continue to accrue until the underlying securities are issued. The following table sets forth the 2004 LTIP phantom unit award activity for the years ended December 31, 2015, 2014 and 2013, respectively:

 

     Years Ended December 31,  
     2015      2014      2013  

Outstanding, beginning of period

     169,122         162,103         143,213   

Granted (1)

     15,335         23,003         18,890   

Settled in common units or cash

     —           (15,984      —     
  

 

 

    

 

 

    

 

 

 

Outstanding, end of period (2)

     184,457         169,122         162,103   
  

 

 

    

 

 

    

 

 

 

 

(1) The weighted-average grant date fair value for the phantom unit awards on the date of grant was $28.42, $24.90, and $25.29 for the years ended December 31, 2015, 2014 and 2013, respectively. The intrinsic values of phantom unit awards vested during the years ended December 31, 2015, 2014 and 2013 were $0.9 million, $1.0 million and $0.8 million, respectively.
(2) Based on the closing price of the common units on December 31, 2015, the estimated intrinsic value of the outstanding restricted phantom units was $4.9 million.

Total compensation expense for phantom unit awards under both the 2004 and 2014 plans was approximately $1.0 million, $1.0 million and $0.8 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Unit Appreciation Rights Awards

UAR awards represent rights to receive a right to receive common units in an amount equal to the closing price of the Partnership’s common units on the date preceding the exercise date less the exercise price of the UAR award, to the extent the closing price of the Partnership’s common units on the date preceding the exercise date is in excess of the exercise price. This amount is then divided by the closing pricing of the Partnership’s common units on the date preceding the exercise date to determine the number of common units issued to the participant. UAR awards are subject to terms and conditions determined by the Compensation Committee, which may include vesting restrictions. UAR awards granted through December 31, 2015 have a five-year contractual term beginning on the grant date and vest ratably over a period of 48 months beginning on the grant date. Of the UAR awards outstanding at December 31, 2015, 20,313 awards will vest within the following twelve months. The following table sets forth the UAR award activity for the years ended December 31, 2015, 2014 and 2013:

 

     Years Ended December 31,  
     2015      2014      2013  

Outstanding, beginning of period

     123,000         673,716         774,598   

Granted

     —           15,000         52,500   

Exercised

     (50,477      (554,466      (133,110

Forfeited

     (5,730      (11,250      (20,272
  

 

 

    

 

 

    

 

 

 

Outstanding, end of period (1)

     66,793         123,000         673,716   
  

 

 

    

 

 

    

 

 

 

Exercisable, end of period

     33,092         57,090         594,248   

 

(1) Based on the closing price of the common units on December 31, 2015 the estimated intrinsic value of the outstanding UARs was $0.1 million. The weighted average remaining contractual life for outstanding UAR awards at December 31, 2015 was 2.6 years.

At December 31, 2015, the Partnership had approximately $0.1 million of unrecognized compensation expense related to unvested UAR awards that will be recognized through the year ended December 31, 2018. The Partnership recognized total compensation expense for UAR awards of $0.1 million, $0.1 million and $0.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. The Partnership issued 7,716, 152,823 and 34,096 common units due to exercised UAR awards for the years ended December 31, 2015, 2014 and 2013, respectively.

The Partnership’s estimated fair value of UAR awards granted during the years ended December 31, 2014 and 2013 were calculated on the grant date using the Black-Scholes-Merton option pricing model, which is based on Level 3 inputs. There were no UAR awards granted during the year ended December 31, 2015. A summary of the weighted-average assumptions used in the valuation are presented below:

 

     Years Ended December 31,  
     2014     2013  

Expected dividend yield

     9.95     9.14

Risk-free interest rate

     1.06     0.63

Expected volatility

     27.13     28.57

Expected life (in years)

     3.52        3.52   

Fair value per UAR granted

   $ 1.60      $ 2.09   

The aggregate fair values of UARs granted during the years ended December 31, 2014 and 2013 were approximately $0.1 million.

COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES

14. COMMITMENTS AND CONTINGENCIES

Legal

During the year ended December 31, 2015, the Partnership recognized a charge pertaining to a legal settlement of a Fair Labor Standards Act claim. This $3.1 million amount is recorded under “Legal settlement” on the consolidated statement of operations and consists of the settlement amount and legal fees related to the case.

The Partnership 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 its financial position or results of operations.

Leases

The Partnership has noncancelable operating leases for equipment and office space that expire at various dates with initial terms ranging from one to twenty-five years. Certain operating leases provide the Partnership with the option to renew for additional periods. Where operating leases contain escalation clauses, rent abatements, and/or concessions, the Partnership applies them in the determination of straight-line rent expense over the lease term. Leasehold improvements are amortized over the shorter of the lease term or asset life, which may include renewal periods where the renewal is reasonably assured, and is included in the determination of straight-line rent expense. Total rent expense for the years ended December 31, 2015, 2014 and 2013 was $3.4 million, $2.5 million and $2.7 million, respectively. The aggregate amount of remaining future minimum lease payments as of December 31, 2015 is as follows (in thousands):

 

2016

   $ 3,356   

2017

     3,520   

2018

     3,411   

2019

     3,069   

2020

     1,784   

Thereafter

     10,471   
  

 

 

 

Total

   $ 25,611   
  

 

 

 

Employment Agreements

As of December 31, 2015, the Partnership has an employment agreement with one of its senior executives for a term of three years beginning July 22, 2013.

Other

In connection with the Partnership’s lease and management agreements with the Archdiocese of Philadelphia, it has committed to certain future lease payment commitments (see Note 3).

FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS

15. FAIR VALUE OF FINANCIAL INSTRUMENTS

Management has established a hierarchy to measure the Partnership’s financial instruments at fair value, which requires it to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs represent market data obtained from independent sources; whereas, unobservable inputs reflect the Partnership’s own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. The hierarchy defines three levels of inputs that may be used to measure fair value:

Level 1 – Unadjusted quoted market prices in active markets for identical, unrestricted assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the same contractual term of the asset or liability.

Level 3 – Unobservable inputs that the entity’s own assumptions about the assumptions market participants would use in the pricing of the asset or liability and are consequently not based on market activity but rather through particular valuation techniques.

The Partnership’s current assets and liabilities on its consolidated balance sheets are considered to be financial instruments, and their estimated fair values approximate their carrying values due to their short-term nature and thus are categorized as Level 1. The Partnership’s merchandise and perpetual care trusts consist of investments in debt and equity marketable securities and cash equivalents, are carried at fair value, and are considered either Level 1 or Level 2 (see Note 7 and 8).

The Partnership’s other financial instruments at December 31, 2015 and 2014 consist of its Senior Notes and outstanding borrowings under its revolving credit facility (see Note 10). The estimated fair values of the Partnership’s Senior Notes at December 31, 2015 and 2014 were $179.9 million and $182.2 million, respectively, based on trades made on those dates, compared with the carrying amounts of $172.2 million and $171.8 million, respectively. At December 31 2015 and 2014, the carrying values of outstanding borrowings under the Partnership’s revolving credit facility (see Note 10), which bears interest at variable interest rates with maturities of 90 days or less, approximated their estimated fair values. The Senior Notes are valued using Level 2 inputs.

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

16. SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

The Partnership’s Senior Notes are guaranteed by StoneMor Operating LLC and its wholly-owned subsidiaries. The guarantees are full, unconditional, joint and several. The Partnership, or the “Parent”, and its wholly-owned subsidiary Cornerstone Family Services of West Virginia Subsidiary Inc., are the co-issuers of the Senior Notes. The co-issuers’ guarantees are full, unconditional, joint and several. The Partnership’s consolidated financial statements as of and for the years ended December 31, 2015, 2014, and 2013 include the accounts of cemeteries operated under long-term lease, operating or management agreements. Under the terms of the Senior Notes these entities are non-guarantor subsidiaries as they are not wholly-owned by the Partnership. The Partnership’s consolidated financial statements also contain merchandise and perpetual care trusts that are also non-guarantor subsidiaries under the agreement. The following supplemental condensed consolidating financial information reflects the Partnership’s standalone accounts, the combined accounts of the subsidiary co-issuer, the combined accounts of the guarantor subsidiaries, the combined accounts of the non-guarantor subsidiaries, the consolidating adjustments and eliminations and the Partnership’s consolidated accounts as of and for the years ended December 31, 2015, 2014 and 2013. For the purpose of the following financial information, the Partnership’s investments in its subsidiaries and the guarantor subsidiaries’ investments in its subsidiaries are presented in accordance with the equity method of accounting (in thousands):

CONDENSED CONSOLIDATING BALANCE SHEETS

 

            Subsidiary      Guarantor      Non-Guarantor               
December 31, 2015    Parent      Issuer      Subsidiaries      Subsidiaries      Eliminations     Consolidated  

Assets

                

Current assets:

                

Cash and cash equivalents

   $ —         $ —         $ 11,869       $ 3,284       $ —        $ 15,153   

Other current assets

     —           4,858         78,464         12,701         —          96,023   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total current assets

     —           4,858         90,333         15,985         —          111,176   

Long-term accounts receivable

     —           2,888         80,969         11,310         —          95,167   

Cemetery property and equipment

     —           1,084         418,400         31,100         —          450,584   

Merchandise trusts

     —           —           —           464,676         —          464,676   

Perpetual care trusts

     —           —           —           307,804         —          307,804   

Deferred selling and obtaining costs

     —           5,967         91,275         14,300         —          111,542   

Goodwill and intangible assets

     —           —           78,223         58,837         —          137,060   

Other assets

     —           —           14,153         2,195         —          16,348   

Due from affiliates

     67,890         122,089         436,811         —           (626,790     —     

Investment in affiliates

     181,546         43,550         —           —           (225,096     —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total assets

   $ 249,436       $ 180,436       $ 1,210,164       $ 906,207       $ (851,886   $ 1,694,357   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Liabilities and Equity

                

Current liabilities

   $ —         $ 12       $ 33,083       $ 837       $ —        $ 33,932   

Long-term debt, net of deferred financing costs

     67,890         104,295         144,214         —           —          316,399   

Deferred revenues

     —           40,467         697,516         77,438         —          815,421   

Perpetual care trust corpus

     —           —           —           307,804         —          307,804   

Other long-term liabilities

     —           —           29,761         9,494         —          39,255   

Due to affiliates

     —           —           172,185         454,605         (626,790     —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total liabilities

     67,890         144,774         1,076,759         850,178         (626,790     1,512,811   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Partners’ Capital

     181,546         35,662         133,405         56,029         (225,096     181,546   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total liabilities and partners’ capital

   $ 249,436       $ 180,436       $ 1,210,164       $ 906,207       $ (851,886   $ 1,694,357   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

December 31, 2014    Parent      Subsidiary
Issuer
     Guarantor
Subsidiaries
     Non-Guarantor
Subsidiaries
     Eliminations     Consolidated  

Assets

                

Current assets:

                

Cash and cash equivalents

   $ —         $ —         $ 7,059       $ 3,342       $ —        $ 10,401   

Other current assets

     —           4,293         81,385         10,675         —          96,353   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total current assets

     —           4,293         88,444         14,017         —          106,754   

Long-term accounts receivable

     —           2,453         76,416         10,667         —          89,536   

Cemetery property and equipment

     —           1,033         411,822         30,223         —          443,078   

Merchandise trusts

     —           —           —           484,820         —          484,820   

Perpetual care trusts

     —           —           —           345,105         —          345,105   

Deferred selling and obtaining costs

     —           5,744         81,195         10,856         —          97,795   

Goodwill and intangible assets

     —           —           67,993         59,833         —          127,826   

Other assets

     —           —           2,294         2,246         —          4,540   

Due from affiliates

     67,700         133,569         436,421         —           (637,690     —     

Investment in affiliates

     205,610         64,429         8,166         —           (278,205     —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total assets

   $ 273,310       $ 211,521       $ 1,172,751       $ 957,767       $ (915,895   $ 1,699,454   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Liabilities and Equity

                

Current liabilities

   $ —         $ 263       $ 35,888       $ 815       $ —        $ 36,966   

Long-term debt, net of deferred financing costs

     67,700         104,100         104,489         —           —          276,289   

Deferred revenues

     —           44,287         684,631         71,370         —          800,288   

Perpetual care trust corpus

     —           —           —           345,105         —          345,105   

Other long-term liabilities

     —           —           26,429         8,767         —          35,196   

Due to affiliates

     —           —           171,800         465,890         (637,690     —     

Total liabilities

     67,700         148,650         1,023,237         891,947         (637,690     1,493,844   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Partners’ Capital

     205,610         62,871         149,514         65,820         (278,205     205,610   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total liabilities and partners’ capital

   $ 273,310       $ 211,521       $ 1,172,751       $ 957,767       $ (915,895   $ 1,699,454   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

 

           Subsidiary     Guarantor     Non-Guarantor              
Year Ended December 31, 2015    Parent     Issuer     Subsidiaries     Subsidiaries     Eliminations     Consolidated  

Total revenues

   $ —        $ 5,751      $ 275,795      $ 48,338      $ (10,299   $ 319,585   

Total cost and expenses

     —          (10,656     (269,748     (47,290     10,299        (317,395

Other income (loss)

     —          —          (1,891     —          —          (1,891

Net loss from equity investment in subsidiaries

     (17,790     (21,031     —          —          38,821        —     

Interest expense

     (5,434     (8,348     (8,075     (728     —          (22,585
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) before income taxes

     (23,224     (34,284     (3,919     320        38,821        (22,286
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income tax benefit (expense)

     —          —          (938     —          —          (938
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ (23,224   $ (34,284   $ (4,857   $ 320      $ 38,821      $ (23,224
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

           Subsidiary     Guarantor     Non-Guarantor              
Year Ended December 31, 2014    Parent     Issuer     Subsidiaries     Subsidiaries     Eliminations     Consolidated  

Total revenues

   $ —        $ 8,270      $ 269,712      $ 37,938      $ (12,131   $ 303,789   

Total cost and expenses

     —          (11,581     (248,307     (40,127     12,131        (287,884

Other income (loss)

     —          —          890        —          —          890   

Net loss from equity investment in subsidiaries

     (3,438     (11,335     —          —          14,773        —     

Interest expense

     (5,434     (8,347     (7,430     (399     —          (21,610
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) before income taxes

     (8,872     (22,993     14,865        (2,588     14,773        (4,815
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income tax benefit (expense)

     —          —          (4,057     —          —          (4,057
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ (8,872   $ (22,993   $ 10,808      $ (2,588   $ 14,773      $ (8,872
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

           Subsidiary     Guarantor     Non-Guarantor              
Year Ended December 31, 2013    Parent     Issuer     Subsidiaries     Subsidiaries     Eliminations     Consolidated  

Total revenues

   $ —        $ 5,762      $ 234,979      $ 29,854      $ (15,069   $ 255,526   

Total cost and expenses

     —          (8,550     (223,054     (34,386     15,069        (250,921

Other income (loss)

     —          12,261        (18,910     —          —          (6,649

Net loss from equity investment in subsidiaries

     (14,166     (6,201     —          —          20,367        —     

Interest expense

     (5,434     (8,347     (7,289     —          —          (21,070
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) before income taxes

     (19,600     (5,075     (14,274     (4,532     20,367        (23,114
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income tax benefit (expense)

     —          —          3,514        —          —          3,514   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ (19,600   $ (5,075   $ (10,760   $ (4,532   $ 20,367      $ (19,600
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

 

Year Ended December 31, 2015    Parent     Subsidiary
Issuer
    Guarantor
Subsidiaries
    Non-Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net cash provided by (used in) operating activities

   $ 2,356      $ 284      $ 14,626      $ 2,933      $ (16,137   $ 4,062   

Cash Flows From Investing Activities:

            

Cash paid for acquisitions and capital expenditures

     —          (284     (30,864     (2,991     —          (34,139
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     —          (284     (30,864     (2,991     —          (34,139
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows From Financing Activities:

            

Cash distributions

     (77,512     —          —          —          —          (77,512

Payments to affiliates

     —          —          (16,137     —          16,137        —     

Net borrowings and repayments of debt

     —          —          37,261        —          —          37,261   

Proceeds from issuance of common units

     75,156        —          —          —          —          75,156   

Other financing activities

     —          —          (76     —          —          (76
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (2,356     —          21,048        —          16,137        34,829   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     —          —          4,810        (58     —          4,752   

Cash and cash equivalents - Beginning of period

     —          —          7,059        3,342        —          10,401   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents - End of period

   $ —        $ —        $ 11,869      $ 3,284      $ —        $ 15,153   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

           Subsidiary     Guarantor     Non-Guarantor              
Year Ended December 31, 2014    Parent     Issuer     Subsidiaries     Subsidiaries     Eliminations     Consolidated  

Net cash provided by operating activities

   $ —        $ 150      $ 29,918      $ 3,161      $ (13,781   $ 19,448   

Cash Flows From Investing Activities:

            

Cash paid for acquisitions and capital expenditures

     —          (150     (67,777     (2,731     —          (70,658

Consideration for lease and management agreements

     —          —          —          (53,000     —          (53,000

Payments to affiliates

     (110,661     —          (53,000     —          163,661        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (110,661     (150     (120,777     (55,731     163,661        (123,658
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows From Financing Activities:

            

Cash distributions

     (62,836     —          —          —          —          (62,836

Payments from affiliates

     —          —          96,880        53,000        (149,880     —     

Net borrowings and repayments of debt

     —          —          (5,275     —          —          (5,275

Proceeds from issuance of common units

     173,497        —          —          —          —          173,497   

Other financing activities

     —          —          (2,950     —          —          (2,950
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     110,661        —          88,655        53,000        (149,880     102,436   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     —          —          (2,204     430        —          (1,774

Cash and cash equivalents - Beginning of period

     —          —          9,263        2,912        —          12,175   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents - End of period

   $ —        $ —        $ 7,059      $ 3,342      $ —        $ 10,401   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

           Subsidiary     Guarantor     Non-Guarantor              
Year Ended December 31, 2013    Parent     Issuer     Subsidiaries     Subsidiaries     Eliminations     Consolidated  

Net cash provided by (used in) operating activities

   $ 13,676      $ 73      $ 49,544      $ (759   $ (27,457   $ 35,077   

Cash Flows From Investing Activities:

            

Cash paid for acquistions and capital expenditures

     —          (73     (26,299     (325     —          (26,697
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     —          (73     (26,299     (325     —          (26,697
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows From Financing Activities:

            

Cash distributions

     (52,053     —          —          —          —          (52,053

Payments to affiliates

     —          —          (27,457     —          27,457        —     

Net borrowings and repayments of debt

     —          —          29,570        —          —          29,570   

Proceeds from issuance of common units

     38,377        —          —          —          —          38,377   

Other financing activities

     —          —          (20,045     —          —          (20,045
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (13,676     —          (17,932     —          27,457        (4,151
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     —          —          5,313        (1,084     —          4,229   

Cash and cash equivalents - Beginning of period

     —          —          3,950        3,996        —          7,946   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents - End of period

   $ —        $ —        $ 9,263      $ 2,912      $ —        $ 12,175   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ISSUANCES OF LIMITED PARTNER UNITS
ISSUANCES OF LIMITED PARTNER UNITS

17. ISSUANCES OF LIMITED PARTNER UNITS

On November 19, 2015, the Partnership entered into an equity distribution agreement (“ATM Equity Program”) with a group of banks (the “Agents”) whereby it may sell, from time to time, common units representing limited partner interests having an aggregate offering price of up to $100,000,000. Sales of common units, if any, may be made in negotiated transactions or transactions that are deemed to be “at-the-market” (“ATM”) offerings as defined in Rule 415 of the Securities Act, including sales made directly on the New York Stock Exchange, the existing trading market for the common units, or sales made to or through the market maker other than on an exchange or through an electronic communications network. The Partnership will pay each of the Agents a commission, which in each case shall not be more than 2.0% of the gross sales price of common units sold through such Agent. During the year ended December 31, 2015, the Partnership issued 277,667 common units under the ATM Equity Program for net proceeds of $7.5 million.

On July 10, 2015, the Partnership issued 2,415,000 common units in a public offering at a price of $29.63 per unit. Net proceeds from the offering, after deducting underwriting discounts and offering expenses, were approximately $67.9 million. The proceeds were used to repay outstanding borrowings under the Partnership’s Credit Facility.

In February 2014, the Partnership issued 2,300,000 common units in a public offering at a price of $24.45 per unit. Net proceeds of the offering, after deducting underwriting discounts and offering expenses, were approximately $53.2 million. The proceeds from the offering were used to repay outstanding borrowings under the Partnership’s Credit Facility.

In May 2014, the Partnership sold to American Cemeteries Infrastructure Investors, LLC, a Delaware limited liability company (“ACII”), 2,255,947 common units (the “ACII Units”) at an aggregate purchase price of $55.0 million pursuant to a Common Unit Purchase Agreement (the “Common Unit Purchase Agreement”), dated May 19, 2014, by and between ACII and the Partnership. Pursuant to the Common Unit Purchase Agreement, commencing with the quarter ending June 30 2014, the ACII Units are entitled to receive cash distributions equal to those paid on the common units generally. Through the quarter ending June 30, 2018, such distributions may be paid in cash, paid-in-kind (“PIK”) common units issued to ACII in lieu of cash distributions, or a combination of cash and PIK units, as determined by the Partnership at its sole discretion. If the Partnership elects to pay cash distributions through the issuance of PIK units, the number of common units to be issued in connection with a quarterly cash distribution will be the quotient of (i) the amount of the quarterly cash distribution paid on the common units by (B) the volume-weighted average price of the common units for the thirty (30) trading days immediately preceding the date the quarterly cash distribution is declared with respect to the common units. Beginning with the quarterly cash distribution payable with respect to the quarter ending September 30, 2018, the ACII Units will receive cash distributions on the same basis as all other common units and the Partnership will no longer have the ability to elect to pay quarterly cash distributions in PIK units. The Partnership issued 204,804 and 111,740 PIK Units to ACII in lieu of cash distributions of $5.8 million and $2.8 million, respectively, during the years ended December 31, 2015 and 2014, respectively.

In June 2014, the Partnership issued 2,990,000 common units in a public offering at a price of $23.67 per unit. Net proceeds of the offering, after deducting underwriting discounts and offering expenses, were approximately $67.1 million. The proceeds from the offering were used to pay the purchase price of certain properties acquired and repay outstanding borrowings under the Partnership’s Credit Facility.

In March 2013, the Partnership issued 1,610,000 common units in a public offering 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 repay outstanding borrowings on the Partnership’s Credit Facility.

SEGMENT INFORMATION
SEGMENT INFORMATION

18. SEGMENT INFORMATION

The Partnership’s operations include two reportable operating segments, Cemetery Operations and Funeral Homes. These operating segments reflect the way the Partnership manages its operations and makes business decisions as of December 31, 2015 and represent a change from prior periods. Prior periods were revised to the current year presentation. Operating segment data for the periods indicated were as follows (in thousands):

 

     Years Ended December 31  
     2015      2014      2013  

Cemetery Operations:

        

Revenues

   $ 261,815       $ 255,103       $ 210,571   

Operating costs and expenses

     (218,570      (202,370      (175,793

Depreciation and amortization

     (7,766      (6,904      (5,336
  

 

 

    

 

 

    

 

 

 

Segment income

   $ 35,479       $ 45,829       $ 29,442   
  

 

 

    

 

 

    

 

 

 

Funeral Homes:

        

Revenues

   $ 57,770       $ 48,686       $ 44,955   

Operating costs and expenses

     (47,413      (39,710      (35,654

Depreciation and amortization

     (3,257      (3,200      (3,036
  

 

 

    

 

 

    

 

 

 

Segment income

   $ 7,100       $ 5,776       $ 6,265   
  

 

 

    

 

 

    

 

 

 

Reconciliation of segment income to net loss:

        

Cemeteries

   $ 35,479       $ 45,829       $ 29,442   

Funeral homes

     7,100         5,776         6,265   
  

 

 

    

 

 

    

 

 

 

Total segment income

     42,579         51,605         35,707   
  

 

 

    

 

 

    

 

 

 

Corporate overhead

     (38,609      (34,723      (29,926

Corporate depreciation and amortization

     (1,780      (977      (1,176

Other net gains (losses)

     (1,891      890         (6,649

Interest expense

     (22,585      (21,610      (21,070

Income tax benefit (expense)

     (938      (4,057      3,514   
  

 

 

    

 

 

    

 

 

 

Net loss

   $ (23,224    $ (8,872    $ (19,600
  

 

 

    

 

 

    

 

 

 

Capital expenditures:

        

Cemeteries

   $ 11,853       $ 13,368       $ 10,111   

Funeral homes

     580         545         1,250   

Corporate

     2,906         661         1,391   
  

 

 

    

 

 

    

 

 

 

Total capital expenditures

   $ 15,339       $ 14,574       $ 12,752   
  

 

 

    

 

 

    

 

 

 

Balance sheet information:

        

Total assets - Cemetery Operations

   $ 1,481,926       $ 1,517,073       $ 1,319,660   

Total assets - Funeral Homes

     190,443         164,925         135,232   

Total assets - Corporate

     21,988         17,456         20,513   
  

 

 

    

 

 

    

 

 

 

Total assets

   $ 1,694,357       $ 1,699,454       $ 1,475,405   
  

 

 

    

 

 

    

 

 

 

Goodwill - Cemetery Operations

   $ 25,320       $ 24,186       $ 18,122   

Goodwill - Funeral Homes

     44,531         34,650         30,615   
  

 

 

    

 

 

    

 

 

 

Total goodwill

   $ 69,851       $ 58,836       $ 48,737   
  

 

 

    

 

 

    

 

 

 
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS

19. SUBSEQUENT EVENTS

On January 26, 2016, the Partnership announced a quarterly cash distribution of $0.66 per common unit pertaining to the results for the fourth quarter of 2015. The distribution was paid on February 12, 2016 to common unit holders of record as of the close of business on February 5, 2016.

Subsequent to December 31, 2015, the Partnership issued 474,657 common units under the ATM Equity Program for net proceeds of approximately $12.4 million. No issuances occurred during February 2016.

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

20. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

As disclosed in Note 2, Restatement of Previously Issued Consolidated Financial Statements, the consolidated financial statements of the Partnership as of December 31, 2015 and 2014, and for each of the three years in the period ended December 31, 2015 have been revised to give effect to the Restatement. Accordingly, the table below presents quarterly results of operations for the years ended December 31, 2015 and 2014, as revised to give effect to the Restatement:

 

     As      Restatement      As  
     Filed      Adjustments      Restated  
     (in thousands, except per unit data)  

Quarter Ended March 31, 2015:

        

Revenues

   $ 67,417       $ 3,076       $ 70,493   

Net income (loss)

     (8,883      373         (8,510

General partner’s interest in net income (loss) for the period

     (120      805         685   

Limited partners’ interest in net income (loss) for the period

     (8,763      (432      (9,195

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

     (0.30      (0.01      (0.31

Quarter Ended March 31, 2014:

        

Revenues

     64,387         3,510         67,897   

Net income (loss)

     409         (72      337   

General partner’s interest in net income (loss) for the period

     4         363         367   

Limited partners’ interest in net income (loss) for the period

     405         (435      (30

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

     0.02         (0.02      —     

Quarter Ended June 30, 2015:

        

Revenues

     80,825         3,688         84,513   

Net income (loss)

     (4,848      204         (4,644

General partner’s interest in net income (loss) for the period

     (65      964         899   

Limited partners’ interest in net income (loss) for the period

     (4,783      (760      (5,543

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

     (0.16      (0.03      (0.19

Quarter Ended June 30, 2014:

        

Revenues

     71,533         3,899         75,432   

Net income (loss)

     (118      21         (97

General partner’s interest in net income (loss) for the period

     (9      535         526   

Limited partners’ interest in net income (loss) for the period

     (109      (514      (623

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

     —           (0.02      (0.02

Quarter Ended September 30, 2015:

        

Revenues

     78,200         3,568         81,768   

Net income (loss)

     (3,402      142         (3,260

General partner’s interest in net income (loss) for the period

     (42      1,062         1,020   

Limited partners’ interest in net income (loss) for the period

     (3,360      (920      (4,280

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

     (0.11      (0.03      (0.14

Quarter Ended September 30, 2014:

        

Revenues

     78,174         4,261         82,435   

Net income (loss)

     (3,268      577         (2,691

General partner’s interest in net income (loss) for the period

     (44      627         583   

Limited partners’ interest in net income (loss) for the period

     (3,224      (50      (3,274

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

     (0.11      —           (0.11

Quarter Ended December 31, 2015:

        

Revenues

     79,198         3,613         82,811   

Net income (loss)

     (7,111      301         (6,810

General partner’s interest in net income (loss) for the period

     (88      1,092         1,004   

Limited partners’ interest in net income (loss) for the period

     (7,023      (791      (7,814

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

     (0.22      (0.03      (0.25

Quarter Ended December 31, 2014:

        

Revenues

     73,991         4,034         78,025   

Net income (loss)

     (7,796      1,375         (6,421

General partner’s interest in net income (loss) for the period

     (106      729         623   

Limited partners’ interest in net income (loss) for the period

     (7,690      646         (7,044

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

   $ (0.26    $ 0.02       $ (0.24

Net income (loss) per limited partner unit is computed independently for each quarter and the full year based upon respective average units outstanding. Therefore, the sum of the quarterly per share amounts may not equal to the annual per share amounts.

GENERAL (Policies)

Nature of Operations

StoneMor Partners L.P. (the “Partnership”) is a provider of funeral and cemetery products and services in the death care industry in the United States. As of December 31, 2015, the Partnership operated 307 cemeteries in 27 states and Puerto Rico, of which 276 are owned and 31 are operated under lease, management or operating agreements. The Partnership also owned and operated 105 funeral homes in 19 states and Puerto Rico.

Basis of Presentation

The consolidated financial statements included in this Form 10-K/A have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

The Partnership’s presentation of its deferred financing costs within its consolidated balance sheet has changed. These deferred costs were previously presented as under their own caption and are now presented as an offset to long-term debt using the caption, “Long-term debt, net of deferred financing cost.” Retrospective adjustment was made to the December 31, 2014 presentation of these deferred costs. This change in presentation has decreased the “Total assets” amount by $9.1 million and decreased “Total liabilities” by the same amount at December 31, 2014. There was no additional impact on other assets or any other previously reported amounts.

Certain amounts in the prior year’s financial statements have been reclassified to conform to the current year presentation.

The Partnership has revised its segment reporting and reporting units from prior presentations based on how it currently manages operations and makes business decisions. The Partnership now has two distinct reportable segments and reporting units, which are classified as Cemetery Operations and Funeral Homes, and are supported by corporate costs and expenses. Prior period balances and activities were adjusted to conform to this revised presentation.

Principles of Consolidation

The consolidated financial statements include the accounts of each of the Partnership’s wholly-owned subsidiaries. These statements also include the accounts of the merchandise and perpetual care trusts in which the Partnership has a variable interest and is the primary beneficiary. The Partnership operates 31 cemeteries under long-term lease, operating or management contracts. The operations of 16 of these managed cemeteries have been consolidated.

The Partnership operates 15 cemeteries under long-term leases and other agreements that do not qualify as acquisitions for accounting purposes, including 13 cemeteries related to the transaction with the Archdiocese of Philadelphia that closed in the second quarter of 2014. As a result, the Partnership did not consolidate all of the existing assets and liabilities related to these cemeteries. The Partnership has consolidated the existing assets and liabilities of the merchandise and perpetual care trusts associated with these cemeteries as variable interest entities since the Partnership controls and receives the benefits and absorbs any losses from operating these trusts. Under the long-term leases, and other agreements associated with these properties, which are subject to certain termination provisions, the Partnership is the exclusive operator of these cemeteries and earns revenues related to sales of merchandise, services, and interment rights, and incurs expenses related to such sales, including the maintenance and upkeep of these cemeteries. Upon termination of these contracts, the Partnership will retain all of the benefits and related contractual obligations incurred from sales generated during the contract period. The Partnership has also recognized the existing performance obligations that it assumed as part of these agreements.

Total revenues derived from the cemeteries under these agreements totaled approximately $53.5 million, $43.4 million and $33.9 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Use of Estimates

The preparation of the Partnership’s consolidated financial statements in conformity with GAAP 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 consolidated financial statements, as well as the reported amounts of revenue and expense during the reporting periods. The Partnership’s consolidated financial statements are based on a number of significant estimates, including revenue and expense accruals, depreciation and amortization, merchandise trusts and perpetual care trusts asset valuation, allowance for cancellations, unit-based compensation, deferred contract revenues, deferred merchandise trust investment earnings, deferred selling and obtaining costs, assets and liabilities obtained via business combinations and income taxes. As a result, actual results could differ from those estimates.

Accounts Receivable, Net of Allowance

The Partnership sells pre-need cemetery contracts whereby the customer enters into arrangements for future merchandise and services prior to the time of need. These sales are usually made using interest-bearing installment contracts not to exceed 60 months. The interest income is recorded when the interest amount is considered realizable and collectible, which typically coincides with cash payment. Interest income is not recognized until payments are collected in accordance with the contract. At the time of a pre-need sale, the Partnership records an account receivable in an amount equal to the total contract value less unearned finance income and any cash deposit paid, net of an estimated allowance for customer cancellations. The Partnership recognizes an allowance for cancellation of these receivables based upon its historical experience, which is recorded as a reduction in accounts receivable and a corresponding offset to deferred revenues.

Management evaluates customer receivables for impairment on an individual contract basis based upon its historical experience, including the age of the receivable and the customer’s payment history. Since the Partnership’s receivables primarily relate to pre-need sales, the Partnership has not performed the service or fulfilled all of its obligations for the merchandise to which the receivable relates and, as such, no risk of loss exists regarding accounts receivable.

Cash and Cash Equivalents

The Partnership considers all highly liquid investments purchased with an original maturity of three months or less from the time they are acquired to be cash equivalents.

Property and Equipment

Property and equipment is stated at cost or, upon acquisition of a business, at the fair value of the assets acquired and depreciated on a straight-line basis. Maintenance and repairs are charged to expense as incurred, whereas additions and major replacements are capitalized and depreciation is recorded over their estimated useful lives as follows:

 

Buildings and improvements    10 to 40 years
Furniture and equipment    3 to 10 years
Leasehold improvements    over the shorter of the term of the lease or the life of the asset

Inventories

Inventories are classified within other current assets on the Partnership’s consolidated balance sheet and include cemetery and funeral home merchandise valued at the lower of cost or net realizable value. Cost is determined primarily on a specific identification basis on a first-in, first-out basis. Inventories were approximately $9.7 million and $5.6 million at December 31, 2015 and 2014, respectively.

Impairment of Long-Lived Assets

The Partnership monitors the recoverability of long-lived assets, including cemetery property, property and equipment and other assets, based on estimates using factors such as current market value, future asset utilization, business and regulatory climate and future undiscounted cash flows expected to result from the use of the related assets, at a location level. The Partnership’s policy is to evaluate an asset for impairment when events or circumstances indicate that a long-lived asset’s carrying value may not be recovered. An impairment charge is recorded to write-down the asset to its fair value if the sum of future undiscounted cash flows is less than the carrying value of the asset.

Other-Than-Temporary Impairment of Trust Assets

The Partnership determines whether or not the impairment of a fixed maturity debt security is other-than-temporary by evaluating each of the following:

 

    Whether it is the Partnership’s intent to sell the security. If there is intent to sell, the impairment is considered to be other-than-temporary.

 

    If there is no intent to sell, the Partnership evaluates if it is not more likely than not that it will be required to sell the debt security before its anticipated recovery. If the Partnership determines that it is more likely than not that it will be required to sell an impaired investment before its anticipated recovery, the impairment is considered to be other-than-temporary.

The Partnership further evaluates whether or not all assets in the trusts have other-than-temporary impairments based upon a number of criteria including the severity of the impairment, length of time a security has been in a loss position, changes in market conditions and concerns related to the specific issuer.

If an impairment is considered to be other-than-temporary, the cost basis of the security is adjusted downward to its fair value.

For assets held in the perpetual care trusts, any reduction in the cost basis due to an other-than-temporary impairment is offset with an equal and opposite reduction in the perpetual care trust corpus and has no impact on earnings.

For assets held in the merchandise trusts, any reduction in the cost basis due to an other-than-temporary impairment is recorded in deferred revenue.

Goodwill

The Partnership tests goodwill for impairment at each year end by comparing its reporting units’ estimated fair values to carrying values. Because quoted market prices for the reporting units are not available, the Partnership’s management must apply judgment in determining the estimated fair value of these reporting units. The Partnership’s management uses all available information to make these fair value determinations, including the present values of expected future cash flows using discount rates commensurate with the risks involved in the Partnership’s assets and the available market data of the industry group. A key component of these fair value determinations is a reconciliation of the sum of the fair value calculations to the Partnership’s market capitalization. The observed market prices of individual trades of an entity’s equity securities (and thus its computed market capitalization) may not be representative of the fair value of the entity as a whole. Substantial value may arise from the ability to take advantage of synergies and other benefits that flow from control over another entity. Consequently, measuring the fair value of a collection of assets and liabilities that operate together in a controlled entity is different from measuring the fair value of that entity on a stand-alone basis. In most industries, including the Partnership’s, an acquiring entity typically is willing to pay more for equity securities that give it a controlling interest than an investor would pay for a number of equity securities representing less than a controlling interest. Therefore, once the above fair value calculations have been determined, the Partnership’s management also considers the inclusion of a control premium within the calculations. This control premium is judgmental and is based on, among other items, observed acquisitions in the Partnership’s industry. The resultant fair values calculated for the reporting units are compared to observable metrics on large mergers and acquisitions in the Partnership’s industry to determine whether those valuations appear reasonable in management’s judgment. Management will continue to evaluate goodwill at least annually, or when impairment indicators arise.

Deferred Revenues

Revenues from the sale of services and merchandise, as well as any investment income from the merchandise trust is deferred until such time that the services are performed or the merchandise is delivered.

In addition to amounts deferred on new contracts, and investment income and unrealized gains on our merchandise trust, deferred revenues includes deferred revenues from pre-need sales that were entered into by entities prior to the acquisition of those entities by the Partnership. The Partnership provides for a reasonable profit margin for these deferred revenues to account for the future costs of delivering products and providing services on pre-need contracts that the Partnership acquired through acquisition. These revenues and their associated costs are recognized when the related merchandise is delivered or services are performed and are presented on a gross basis on the consolidated statements of operations.

Income Taxes

The Partnership is not subject to U.S. federal and most state income taxes. The partners of the Partnership are liable for income tax in regard to their distributive share of the Partnership’s taxable income. Such taxable income may vary substantially from net income reported in the accompanying consolidated financial statements. Certain corporate subsidiaries are subject to federal and state income tax. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and tax 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 Partnership records a valuation allowance against its deferred tax assets if it deems that it is more likely than not that some portion or all of the recorded deferred tax assets will not be realizable in future periods.

Net Income (Loss) per Common Unit

Basic net income (loss) attributable to common limited partners per unit is computed by dividing net income (loss) attributable to common limited partners, which is determined after the deduction of the general partner’s interest, by the weighted average number of common limited partner units outstanding during the period. Net income (loss) attributable to common limited partners is determined by deducting net income attributable to participating securities, if applicable and net income (loss) attributable to the general partner’s units. The general partner’s interest in net income (loss) is calculated on a quarterly basis based upon its units and incentive distributions to be distributed for the quarter, with a priority allocation of net income to the general partner’s incentive distributions, if any, in accordance with the partnership agreement, and the remaining net income (loss) allocated with respect to the general partner’s and limited partners’ ownership interests.

The Partnership presents net income (loss) per unit under the two-class method for master limited partnerships, which considers whether the incentive distributions of a master limited partnership represent a participating security when considered in the calculation of earnings per unit under the two-class method. The two-class method considers whether the partnership agreement contains any contractual limitations concerning distributions to the incentive distribution rights that would impact the amount of earnings to allocate to the incentive distribution rights for each reporting period. If distributions are contractually limited to the incentive distribution rights’ share of currently designated available cash for distributions as defined under the partnership agreement, undistributed earnings in excess of available cash should not be allocated to the incentive distribution rights. Under the two-class method, management of the Partnership believes the partnership agreement contractually limits cash distributions to available cash; therefore, undistributed earnings in excess of available cash are not allocated to the incentive distribution rights.

The following is a reconciliation of net income (loss) allocated to the common limited partners for purposes of calculating net income (loss) attributable to common limited partners per unit (in thousands, except unit data):

 

     Years Ended December 31,  
     2015      2014      2013  

Net loss

   $ (23,224    $ (8,872    $ (19,600

Less: Incentive distribution right (“IDR”) payments to general partner

     3,961         2,250       $ 1,296   
  

 

 

    

 

 

    

 

 

 

Net loss to allocate to general and limited partners

     (27,185      (11,122      (20,896

General partner’s interest excluding IDRs

     (353      (151      (385
  

 

 

    

 

 

    

 

 

 

Net loss attributable to common limited partners

   $ (26,832    $ (10,971    $ (20,511
  

 

 

    

 

 

    

 

 

 

Diluted net income (loss) attributable to common limited partners per unit is calculated by dividing net income (loss) attributable to common limited partners, less income allocable to participating securities, by the sum of the weighted average number of common limited partner units outstanding and the dilutive effect of unit appreciation rights and other awards, as calculated by the treasury stock or if converted methods, as applicable. These awards consist of common units issuable upon payment of an exercise price by the participant under the terms of the Partnership’s long-term incentive plan (see Note 13).

New Accounting Pronouncements

In the second quarter of 2014, the Financial Accounting Standards Board (“FASB”) issued Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which supersedes the revenue recognition requirements in “Topic 605 - Revenue Recognition” and most industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. During the third quarter of 2015, Update No. 2015-14, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2015-14”) was released, deferring the effective date of the amendments to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted, only as of an annual reporting period beginning after December 15, 2016. The Partnership will adopt the requirements of ASU 2014-09 upon its effective date of January 1, 2018, and is evaluating the potential impact of the adoption on its financial position, results of operations or related disclosures.

In the first quarter of 2015, the FASB issued Update No. 2015-02, “Consolidation (Topic 810)” (“ASU 2015-02”), which amends previous consolidation analysis guidance. ASU 2015-02 requires companies to consider revised consolidation criteria regarding limited partnerships and similar legal entities. The amendments are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early application is permitted. The Partnership will adopt the requirements of ASU 2015-02 upon its effective date of January 1, 2016, and it does not anticipate it having a material impact on its financial position, results of operations, and related disclosures.

In the second quarter of 2015, the FASB issued Update No. 2015-03, “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”), which changes the presentation of debt issuance costs. During the third quarter of 2015, Update No. 2015-15, “Interest—Imputation of Interest (Subtopic 835-30) (“ASU 2015-15”) was released clarifying the treatment of debt issuance costs associated with line-of-credit arrangements. ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. ASU 2015-15 allows the deferral and presentation of debt issuance costs pertaining to line-of-credit arrangements as an asset. The amendments in the update are effective for annual reporting periods beginning after December 15, 2015, including interim periods within those reporting periods. Early application is permitted. The Partnership has elected to early adopt the presentation change regarding its deferred financing cost within its consolidated balance sheets. These deferred financing costs were previously presented as a separate asset caption and are now presented as a direct reduction to long-term debt under the caption, “Long-term debt, net of deferred financing costs.” This change in presentation has decreased “Total assets” and “Total liabilities” by $9.1 million at December 31, 2014.

In the third quarter of 2015, the FASB issued Update No. 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). ASU 2015-16 requires that an acquirer recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments are effective for fiscal years beginning after December 15, 2015 and early application is permitted. The Partnership has elected to early adopt the requirements of ASU 2015-16 during the fourth quarter of 2015, and it did not have a material impact on its financial position, results of operations and related disclosures.

In the first quarter of 2016, the FASB issued Update No. 2016-01, “Financial Instruments (Subtopic 825-10)” (“ASU 2016-01”). The core principle of ASU 2016-01 is that all equity investments should be measured at fair value with changes in the fair value recognized through net income. The amendment is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted for the key aspects of the amendment. The Partnership will adopt the requirements of ASU 2016-01 upon its effective date of January 1, 2018, and is evaluating the potential impact of the adoption on its financial position, results of operations and related disclosures.

Merchandise Trusts

Pursuant to state law, a portion of the proceeds from pre-need sales of merchandise and services is put into trust (the “merchandise trust”) until such time that the Partnership meets the requirements for releasing trust principal, which is generally delivery of merchandise or performance of services. All investment earnings generated by the assets in the merchandise trusts (including realized gains and losses) are deferred until the associated merchandise is delivered or the services are performed (see
Note 7).

Perpetual Care Trusts

Pursuant to state law, a portion of the proceeds from the sale of cemetery property is required to be paid into perpetual care trusts. The perpetual care trust principal does not belong to the Partnership and must remain in this trust into perpetuity while interest and dividends may be released and used to defray cemetery maintenance costs, which are expensed as incurred. The Partnership consolidates the trust into its financial statements because the trust is considered a variable interest entity for which the Partnership is the primary beneficiary. Earnings from the perpetual care trusts are recognized in current cemetery revenues (see Note 8).

Cemetery Property

Cemetery property consists of developed and undeveloped cemetery property, constructed mausoleum crypts and lawn crypts and other cemetery property. Cemetery property is stated at cost or, upon acquisition of a business, at the fair value of the assets acquired.

Cemetery Merchandise and Services Sales

The Partnership sells its merchandise and services on both a pre-need and at-need basis. Sales of at-need cemetery services and merchandise are recognized as revenue when the service is performed or merchandise is delivered.

Pre-need sales are usually made on an installment contract basis for a period not to exceed 60 months with payments of principal and interest required. For those contracts that do not bear a market rate of interest, the Partnership imputes such interest based upon the prime rate plus 150 basis points, which resulted in a rate of 4.75% for contracts entered into during the three years ended December 31, 2015, in order to segregate the principal and interest component of the total contract value.

At the time of a pre-need sale, the Partnership records an account receivable in an amount equal to the total contract value less unearned finance income and any cash deposit paid, net of an estimated allowance for customer cancellations. The revenue from both the sales and interest component is deferred. Interest revenue is recognized utilizing the effective interest method.

The allowance for customer cancellations is established based on management’s estimates of expected cancellations and historical experiences. Revenue from the sale of burial lots and constructed mausoleum crypts is deferred until such time that 10% of the sales price has been collected, at which time it is fully earned; revenues from the sale of unconstructed mausoleums are recognized using the percentage-of-completion method of accounting while revenues from cemetery merchandise and services are recognized once such merchandise is delivered (title has transferred to the customer and the merchandise is either installed or stored, at the direction of the customer, at the vendor’s warehouse or a third-party warehouse at no additional cost to us) or services are performed.

The Partnership defers certain pre-need cemetery and prearranged funeral direct obtaining costs that vary with and are primarily related to the acquisition of new pre-need cemetery and prearranged funeral business. Such costs are expensed as revenues are recognized.

Funeral Home Service and Insurance Policy Sales

Revenue from funeral home services is recognized as services are performed and merchandise is delivered. The Partnership’s funeral home operations also include revenues related to the sale of term and final expense whole life insurance. As an agent for these insurance sales, the Partnership earns and recognizes commission-related revenue streams from the sales of these policies.

Pursuant to state law, a portion of proceeds received from pre-need funeral service contracts is put into trust while amounts used to defray the initial administrative costs are not. All investment earnings generated by the assets in the trust (including realized gains and losses) are deferred until the associated merchandise is delivered or the services are performed. The balance of the amounts in these trusts is included within the merchandise trusts above.

GENERAL (Tables)

Maintenance and repairs are charged to expense as incurred, whereas additions and major replacements are capitalized and depreciation is recorded over their estimated useful lives as follows:

 

Buildings and improvements    10 to 40 years
Furniture and equipment    3 to 10 years
Leasehold improvements    over the shorter of the term of the lease or the life of the asset

The following is a reconciliation of net income (loss) allocated to the common limited partners for purposes of calculating net income (loss) attributable to common limited partners per unit (in thousands, except unit data):

 

     Years Ended December 31,  
     2015      2014      2013  

Net loss

   $ (23,224    $ (8,872    $ (19,600

Less: Incentive distribution right (“IDR”) payments to general partner

     3,961         2,250       $ 1,296   
  

 

 

    

 

 

    

 

 

 

Net loss to allocate to general and limited partners

     (27,185      (11,122      (20,896

General partner’s interest excluding IDRs

     (353      (151      (385
  

 

 

    

 

 

    

 

 

 

Net loss attributable to common limited partners

   $ (26,832    $ (10,971    $ (20,511
  

 

 

    

 

 

    

 

 

 

The following table sets forth the reconciliation of the Partnership’s weighted average number of common limited partner units used to compute basic net income (loss) attributable to common limited partners per unit with those used to compute diluted net income (loss) attributable to common limited partners per unit (in thousands):

 

     Years Ended December 31,  
     2015      2014      2013  

Weighted average number of common limited partner units - basic

     30,472         26,582         20,954   

Add effect of dilutive incentive awards (1)

     —           —           —     
  

 

 

    

 

 

    

 

 

 

Weighted average number of common limited partner units - diluted

     30,472         26,582         20,954   
  

 

 

    

 

 

    

 

 

 

 

(1) The diluted weighted average number of limited partners’ units outstanding presented on the consolidated statement of operations does not include 282,093 units, 164,709 units and 297,078 units for the years ended December 31, 2015, 2014 and 2013, respectively, as their effects would be anti-dilutive.
RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Tables)

The effect of these adjustments on the Partnership’s consolidated balance sheets, statements of operations and cash flows as of December 31, 2015 and 2014 and for the years ended December 31, 2015, 2014, and 2013 is summarized below for each affected caption:

 

         As of December 31,  
         2015      2014  
         As     Restatement     As      As     Restatement     As  
    Reference    Filed     Adjustments     Restated      Filed     Adjustments     Restated  
         (in thousands)  

Other current assets

  I    $ 18,863      $ 3,378      $ 22,241       $ 24,266      $ 4,876      $ 29,142   

Total current assets

       107,798        3,378        111,176         101,878        4,876        106,754   

Cemetery property

  E      342,639        (8,182     334,457         339,848        (7,189     332,659   

Property and equipment

  E      104,330        11,797        116,127         100,391        10,028        110,419   

Goodwill and intangible assets

  D      137,060        (137,060     —           127,826        (127,826     —     

Goodwill

  D      —          69,851        69,851         —          58,836        58,836   

Intangible assets

  D      —          67,209        67,209         —          68,990        68,990   

Deferred tax assets

  J      40        141        181         40        141        181   

Other assets

  I      15,069        1,098        16,167         3,136        1,223        4,359   

Total assets

       1,686,125        8,232        1,694,357         1,690,375        9,079        1,699,454   

Accounts payable and accrued liabilities

  F      31,875        (1,886     29,989         35,382        (1,886     33,496   

Total current liabilities

       35,818        (1,886     33,932         38,852        (1,886     36,966   

Deferred cemetery revenues, net

  B      637,536        (637,536     —           643,408        (643,408     —     

Merchandise liability

  B      173,097        (173,097     —           150,192        (150,192     —     

Deferred revenues

  B, E, G, H, I      —          815,421        815,421         —          800,288        800,288   

Deferred tax liabilities

  J      17,833        (86     17,747         17,708        84        17,792   

Other long-term liabilities

  G      13,960        7,548        21,508         10,059        7,345        17,404   

Total liabilities

       1,502,447        10,364        1,512,811         1,481,613        12,231        1,493,844   

General partner interest

  A, G, H, I, J      (10,038     10,053        15         (5,113     6,130        1,017   

Common limited partners’ interest

  A, F, G, H, I, J      193,716        (12,185     181,531         213,875        (9,282     204,593   

Total partners’ capital

       183,678        (2,132     181,546         208,762        (3,152     205,610   

Total liabilities and partners’ capital

     $ 1,686,125      $ 8,232      $ 1,694,357       $ 1,690,375      $ 9,079      $ 1,699,454   

 

        Year Ended December 31,  
        2015     2014     2013  
        As     Restatement     As     As     Restatement     As     As     Restatement     As  
    Reference   Filed     Adjustments     Restated     Filed     Adjustments     Restated     Filed     Adjustments     Restated  
        (in thousands)  

Cemetery revenues:

                   

Merchandise

  C, H, I   $ 131,862      $ 11,182      $ 143,044      $ 132,355      $ 13,567      $ 145,922      $ 110,673      $ 8,263      $ 118,936   

Services

  C, H, I     56,243        2,933        59,176        51,827        2,730        54,557        44,054        2,334        46,388   

Investment and other

  G     59,765        (170     59,595        55,217        (593     54,624        46,959        (1,712     45,247   

Total revenues

      305,640        13,945        319,585        288,085        15,704        303,789        246,641        8,885        255,526   

Cost of goods sold

  C, G, I     38,924        13,095        52,019        33,652        13,659        47,311        27,859        10,663        38,522   

Total cost and expenses

      304,300        13,095        317,395        274,225        13,659        287,884        240,258        10,663        250,921   

Operating income

      1,340        850        2,190        13,860        2,045        15,905        6,383        (1,778     4,605   

Loss before income taxes

      (23,136     850        (22,286     (6,860     2,045        (4,815     (21,336     (1,778     (23,114

Income tax benefit (expense)

  J     (1,108     170        (938     (3,913     (144     (4,057     2,304        1,210        3,514   

Net loss

      (24,244     1,020        (23,224     (10,773     1,901        (8,872     (19,032     (568     (19,600

General partner’s interest for the period

  A, G, H, I, J     (315     3,923        3,608        (155     2,254        2,099        (350     1,261        911   

Limited partners’ interest for the period

  A, G, H, I, J     (23,929     (2,903     (26,832     (10,618     (353     (10,971     (18,682     (1,829     (20,511

Net loss per limited partner unit (basic and diluted)

  A, G, H, I, J   $ (0.79   $ (0.09   $ (0.88   $ (0.40   $ (0.01   $ (0.41   $ (0.89   $ (0.09   $ (0.98

 

        Year Ended December 31,  
        2015     2014     2013  
        As     Restatement     As     As     Restatement     As     As     Restatement     As  
    Reference   Filed     Adjustments     Restated     Filed     Adjustments     Restated     Filed     Adjustments     Restated  
        (in thousands)  

Net loss

  G, H, I, J   $ (24,244   $ 1,020      $ (23,224   $ (10,773   $ 1,901      $ (8,872   $ (19,032   $ (568   $ (19,600

Changes in assets and liabilities:

                   

Other assets

  E, I     (7,193     4,810        (2,383     (3,179     381        (2,798     (2,177     1,614        (563

Deferred revenues

  B, E, G, H, I     78,676        (2,441     76,235        60,841        (8,131     52,710        72,708        (4,254     68,454   

Deferred taxes (net)

  J     157        (170     (13     2,743        144        2,887        (2,865     (1,210     (4,075

Payables and other liabilities

  G     2,491        (3,219     (728     (6,580     5,705        (875     3,727        4,418        8,145   

Net cash provided by operating activities

    $ 4,062      $ —        $ 4,062      $ 19,448      $ —        $ 19,448      $ 35,077      $ —        $ 35,077   

 

 

 

The table below summarizes the effects of the restatement adjustments on the Statement of Partners’ Capital balances for the years ended December 31, 2015, 2014, and 2013, including the effects of the cumulative restatement adjustments recorded to all periods prior to January 1, 2013: 

          Common
Limited
Partners
    General
Partner
    Total     Common
Limited
Partners
    General
Partner
     Total     Common
Limited
Partners
    General
Partner
     Total  
     Reference     

As

Filed

   

Restatement

Adjustments

   

As

Restated

 
            (in thousands)  

Capital Balance at December 31, 2012

     A, F, G, H, I, J       $ 134,796      $ 386      $ 135,182      $ (6,855   $ 2,615       $ (4,240   $ 127,941      $ 3,001       $ 130,942   

Issuance of common units

     F         38,377        —          38,377        42        —           42        38,419        —           38,419   

Net loss

     A, G, H, I, J         (18,682     (350     (19,032     (1,829     1,261         (568     (20,511     911         (19,600

Capital Balance at December 31, 2013

     A, F, G, H, I, J         109,657        (2,137     107,520        (8,642     3,876         (4,766     101,015        1,739         102,754   

Issuance of common units

     F         176,558        —          176,558        (287     —           (287     176,271        —           176,271   

Net loss

     A, G, H, I, J         (10,618     (155     (10,773     (353     2,254         1,901        (10,971     2,099         (8,872

Capital Balance at December 31, 2014

     A, F, G, H, I, J         213,875        (5,113     208,762        (9,282     6,130         (3,152     204,593        1,017         205,610   

Net loss

     A, G, H, I, J         (23,929     (315     (24,244     (2,903     3,923         1,020        (26,832     3,608         (23,224

Capital Balance at December 31, 2015

     A, F, G, H, I, J       $ 193,716      $ (10,038   $ 183,678      $ (12,185   $ 10,053       $ (2,132   $ 181,531      $ 15       $ 181,546   

As disclosed in Note 2, Restatement of Previously Issued Consolidated Financial Statements, the consolidated financial statements of the Partnership as of December 31, 2015 and 2014, and for each of the three years in the period ended December 31, 2015 have been revised to give effect to the Restatement. Accordingly, the table below presents quarterly results of operations for the years ended December 31, 2015 and 2014, as revised to give effect to the Restatement:

 

     As      Restatement      As  
     Filed      Adjustments      Restated  
     (in thousands, except per unit data)  

Quarter Ended March 31, 2015:

        

Revenues

   $ 67,417       $ 3,076       $ 70,493   

Net income (loss)

     (8,883      373         (8,510

General partner’s interest in net income (loss) for the period

     (120      805         685   

Limited partners’ interest in net income (loss) for the period

     (8,763      (432      (9,195

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

     (0.30      (0.01      (0.31

Quarter Ended March 31, 2014:

        

Revenues

     64,387         3,510         67,897   

Net income (loss)

     409         (72      337   

General partner’s interest in net income (loss) for the period

     4         363         367   

Limited partners’ interest in net income (loss) for the period

     405         (435      (30

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

     0.02         (0.02      —     

Quarter Ended June 30, 2015:

        

Revenues

     80,825         3,688         84,513   

Net income (loss)

     (4,848      204         (4,644

General partner’s interest in net income (loss) for the period

     (65      964         899   

Limited partners’ interest in net income (loss) for the period

     (4,783      (760      (5,543

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

     (0.16      (0.03      (0.19

Quarter Ended June 30, 2014:

        

Revenues

     71,533         3,899         75,432   

Net income (loss)

     (118      21         (97

General partner’s interest in net income (loss) for the period

     (9      535         526   

Limited partners’ interest in net income (loss) for the period

     (109      (514      (623

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

     —           (0.02      (0.02

Quarter Ended September 30, 2015:

        

Revenues

     78,200         3,568         81,768   

Net income (loss)

     (3,402      142         (3,260

General partner’s interest in net income (loss) for the period

     (42      1,062         1,020   

Limited partners’ interest in net income (loss) for the period

     (3,360      (920      (4,280

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

     (0.11      (0.03      (0.14

Quarter Ended September 30, 2014:

        

Revenues

     78,174         4,261         82,435   

Net income (loss)

     (3,268      577         (2,691

General partner’s interest in net income (loss) for the period

     (44      627         583   

Limited partners’ interest in net income (loss) for the period

     (3,224      (50      (3,274

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

     (0.11      —           (0.11

Quarter Ended December 31, 2015:

        

Revenues

     79,198         3,613         82,811   

Net income (loss)

     (7,111      301         (6,810

General partner’s interest in net income (loss) for the period

     (88      1,092         1,004   

Limited partners’ interest in net income (loss) for the period

     (7,023      (791      (7,814

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

     (0.22      (0.03      (0.25

Quarter Ended December 31, 2014:

        

Revenues

     73,991         4,034         78,025   

Net income (loss)

     (7,796      1,375         (6,421

General partner’s interest in net income (loss) for the period

     (106      729         623   

Limited partners’ interest in net income (loss) for the period

     (7,690      646         (7,044

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

   $ (0.26    $ 0.02       $ (0.24
ACQUISITIONS (Tables)
    the Tenant paid $53.0 million to the Landlord at closing, and agreed to make aggregate future rental payments of $36.0 million in accordance with the following schedule:

 

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 following table presents the assets acquired and liabilities assumed in the transaction based on their estimated fair values (in thousands):

 

Assets:

  

Accounts receivable

   $ 1,610   

Intangible asset

     59,758   
  

 

 

 

Total assets

     61,368   
  

 

 

 

Liabilities:

  

Obligation for lease and management agreements

     36,000   

Discount on obligation for lease and management agreements

     (27,632
  

 

 

 

Obligation for lease and management agreements, net

     8,368   
  

 

 

 

Total liabilities

     8,368   
  

 

 

 

Total net assets

   $ 53,000   
  

 

 

 

The Partnership prepared these pro forma unaudited financial results for comparative purposes only; they may not be indicative of the results that would have occurred if the acquisitions consummated during the years ended December 31, 2015 and 2014 and the related financings had occurred on January 1, 2014 or the results that will be attained in future periods (in thousands, except per unit data; unaudited):

 

     Years Ended December 31,  
     2015      2014  

Revenue

   $ 324,657       $ 325,450   

Net loss

     (24,320      (6,287

Net loss per limited partner unit (basic and diluted)

   $ (.92    $ (.29

The following table presents the Partnership’s values assigned to the assets acquired and liabilities assumed in the acquisitions, based on their estimated fair values at the dates of the acquisition, which may be prospectively adjusted as additional information is received (in thousands):

 

Assets:

  

Accounts receivable

   $ 2,761   

Cemetery property

     5,249   

Property and equipment

     7,710   

Inventory

     53   

Merchandise trusts, restricted

     15,075   

Perpetual care trusts, restricted

     4,134   

Intangible assets

     406   
  

 

 

 

Total assets

     35,388   
  

 

 

 

Liabilities:

  

Deferred revenues

     21,032   

Perpetual care trust corpus

     4,134   

Other liabilities

     21   
  

 

 

 

Total liabilities

     25,187   
  

 

 

 

Fair value of net assets acquired

     10,201   
  

 

 

 

Consideration paid - cash

     18,800   

Deferred cash consideration

     876   
  

 

 

 

Total consideration paid

     19,676   
  

 

 

 

Gain on bargain purchase

   $ 1,540   
  

 

 

 

Goodwill from purchase

   $ 11,015   
  

 

 

 

The following table presents the Partnership’s final values assigned to the assets acquired and liabilities assumed in the acquisitions, based on their estimated fair values at the dates of the acquisition (in thousands):

 

Assets:

  

Accounts receivable

   $ 104   

Cemetery property

     470   

Property and equipment

     193   

Merchandise trusts, restricted

     2,685   

Perpetual care trusts, restricted

     691   

Other assets

     22   

Deferred tax assets

     87   

Non-compete agreement

     520   
  

 

 

 

Total assets

     4,772   
  

 

 

 

Liabilities:

  

Deferred revenues

     2,053   

Deferred tax liability

     641   

Perpetual care trust corpus

     691   

Other liabilities

     20   
  

 

 

 

Total liabilities

     3,405   
  

 

 

 

Fair value of net assets acquired

     1,367   
  

 

 

 

Consideration paid - cash

     2,581   
  

 

 

 

Total consideration paid

     2,581   
  

 

 

 

Gain on bargain purchase

   $ 412   
  

 

 

 

Goodwill from purchase

   $ 1,626   
  

 

 

 

The following table presents the Partnership’s final values assigned to the assets acquired and liabilities assumed in the acquisition, based on their estimated fair values at the date of the acquisition (in thousands):

 

Assets:

  

Accounts receivable

   $ 6,188   

Cemetery property

     25,799   

Property and equipment

     16,006   

Merchandise trusts, restricted

     31,534   

Perpetual care trusts, restricted

     16,913   

Intangible assets

     1,170   

Other assets

     178   
  

 

 

 

Total assets

     97,788   
  

 

 

 

Liabilities:

  

Deferred revenues

     33,475   

Deferred tax liability

     2,010   

Perpetual care trust corpus

     16,913   

Other liabilities

     63   
  

 

 

 

Total liabilities

     52,461   
  

 

 

 

Fair value of net assets acquired

     45,327   
  

 

 

 

Consideration paid

     53,800   
  

 

 

 

Goodwill from purchase

   $ 8,473   
  

 

 

 

The following table presents the Partnership’s final values assigned to the assets acquired and liabilities assumed in the acquisitions, based on their estimated fair values at the dates of the acquisition (in thousands):

 

Assets:

  

Accounts receivable

   $ 1,531   

Cemetery property

     3,900   

Property and equipment

     9,362   

Merchandise trusts, restricted

     10,314   

Perpetual care trusts, restricted

     5,888   

Non-compete agreements

     1,927   
  

 

 

 

Total assets

     32,922   
  

 

 

 

Liabilities:

  

Deferred revenues

     8,274   

Deferred tax liability

     701   

Perpetual care trust corpus

     5,888   

Other liabilities

     258   
  

 

 

 

Total liabilities

     15,121   
  

 

 

 

Fair value of net assets acquired

     17,801   
  

 

 

 

Consideration paid - cash

     14,100   

Consideration paid - units

     3,592   

Fair value of Notes Payable

     3,000   

Fair value of debt assumed for non-compete agreements

     924   
  

 

 

 

Total consideration paid

     21,616   
  

 

 

 

Gain on bargain purchase

   $ 2,530   
  

 

 

 

Goodwill from purchase

   $ 6,345   
  

 

 

 
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE (Tables)

Long-term accounts receivable, net, consisted of the following at the dates indicated (in thousands):

 

     December 31,  
     2015      2014  

Customer receivables

   $ 207,645       $ 194,537   

Unearned finance income

     (20,078      (20,360

Allowance for contract cancellations

     (23,985      (22,138
  

 

 

    

 

 

 

Accounts receivable, net of allowance

     163,582         152,039   

Less: current portion - net of allowance

     68,415         62,503   
  

 

 

    

 

 

 

Long-term portion - net of allowance

   $ 95,167       $ 89,536   
  

 

 

    

 

 

 

Activity in the allowance for contract cancellations is as follows (in thousands):

 

     Years Ended December 31,  
     2015      2014      2013  

Balance - beginning of period

   $ 22,138       $ 20,275       $ 17,933   

Provision for cancellations

     25,307         20,870         20,069   

Charge-offs - net

     (23,460      (19,007      (17,727
  

 

 

    

 

 

    

 

 

 

Balance - end of period

   $ 23,985       $ 22,138       $ 20,275   
  

 

 

    

 

 

    

 

 

 
PROPERTY AND EQUIPMENT (Tables)

Property and equipment consists of the following at the dates indicated (in thousands):

 

     December 31,  
     2015      2014  

Building and improvements

   $ 117,034       $ 108,178   

Furniture and equipment

     54,346         49,290   

Funeral home land

     11,797         10,028   
  

 

 

    

 

 

 

Property and equipment - gross

     183,177         167,496   

Less: accumulated depreciation

     (67,050      (57,077
  

 

 

    

 

 

 

Property and equipment, net of accumulated depreciation

   $ 116,127       $ 110,419   
  

 

 

    

 

 

 

Cemetery property consists of the following at the dates indicated (in thousands):

 

     December 31,  
     2015      2014  

Cemetery land

   $ 253,955       $ 252,002   

Mausoleum crypts and lawn crypts

     80,502         80,657   
  

 

 

    

 

 

 

Cemetery property

   $ 334,457       $ 332,659   
  

 

 

    

 

 

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

A reconciliation of the Partnership’s perpetual care trust activities for the years ended December 31, 2015 and 2014 is presented below (in thousands):

 

     Years Ended December 31,  
     2015      2014  

Balance - beginning of period

   $ 345,105       $ 311,771   

Contributions

     15,919         34,332   

Distributions

     (15,003      (14,308

Interest and dividends

     18,019         15,044   

Capital gain distributions

     1,952         125   

Realized gains and losses

     12,323         (164

Other than temporary impairment

     (29,047      —     

Taxes

     (631      (654

Fees

     (2,163      (2,054

Unrealized change in fair value

     (38,670      1,013   
  

 

 

    

 

 

 

Balance - end of period

   $ 307,804       $ 345,105   
  

 

 

    

 

 

 

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

 

                   Gross      Gross        
     Fair Value             Unrealized      Unrealized     Fair  

December 31, 2015

   Hierarchy Level      Cost      Gains      Losses     Value  

Short-term investments

     1       $ 36,618       $ —         $ —        $ 36,618   

Fixed maturities:

             

U.S. State and local government agency

     2         126         14         —          140   

Corporate debt securities

     2         22,837         57         (845     22,049   

Other debt securities

     2         36         —           (1     35   
     

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

        22,999         71         (846     22,224   
     

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

     1         184,866         35         (7,180     177,721   

Mutual funds - equity securities

     1         68,079         1,054         (1,713     67,420   

Equity securities

     1         2,319         636         (7     2,948   

Other invested assets

     2         473         1         (162     312   
     

 

 

    

 

 

    

 

 

   

 

 

 

Total managed investments

      $ 315,354       $ 1,797       $ (9,908   $ 307,243   
     

 

 

    

 

 

    

 

 

   

 

 

 

Assets acquired via acquisition

        561         —           —          561   
     

 

 

    

 

 

    

 

 

   

 

 

 

Total

      $ 315,915       $ 1,797       $ (9,908   $ 307,804   
     

 

 

    

 

 

    

 

 

   

 

 

 
                   Gross      Gross        
     Fair Value             Unrealized      Unrealized     Fair  

December 31, 2014

   Hierarchy Level      Cost      Gains      Losses     Value  

Short-term investments

     1       $ 26,644       $ —         $ —        $ 26,644   

Fixed maturities:

             

U.S. Government and federal agency

     1         100         16         —          116   

U.S. State and local government agency

     2         78         1         —          79   

Corporate debt securities

     2         24,275         104         (913     23,466   

Other debt securities

     2         371         —           —          371   
     

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

        24,824         121         (913     24,032   
     

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

     1         128,735         379         (5,220     123,894   

Mutual funds - equity securities

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

Equity securities

     1         30,617         14,704         (247     45,074   

Other invested assets

     2         25         —           —          25   
     

 

 

    

 

 

    

 

 

   

 

 

 

Total

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

 

 

    

 

 

    

 

 

   

 

 

 

The contractual maturities of debt securities held in the perpetual care trusts as of December 31, 2015 were as follows (in thousands):

 

     Less
than
     1 year
through
     6 years
through
     More
than
 

December 31, 2015

   1 year      5 years      10 years      10 years  

U.S. State and local government agency

     —           112         28         —     

Corporate debt securities

     202         16,138         5,650         59   

Other debt securities

     35         —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

   $ 237       $ 16,250       $ 5,678       $ 59   
  

 

 

    

 

 

    

 

 

    

 

 

 

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

 

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

December 31, 2015

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

U.S. State and local government agency

   $ —         $ —         $ 112       $ —         $ 112       $ —     

Corporate debt securities

     12,482         535         4,505         310         16,987         845   

Other debt securities

     35         1         —           —           35         1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     12,517         536         4,617         310         17,134         846   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     81,215         4,263         50,774         2,917         131,989         7,180   

Mutual funds - equity securities

     16,514         1,363         4,308         350         20,822         1,713   

Equity securities

     488         6         1,137         1         1,625         7   

Other invested assets

     —           —           315         162         315         162   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 110,734       $ 6,168       $ 61,151       $ 3,740       $ 171,885       $ 9,908   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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

December 31, 2014

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

Corporate debt securities

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

Other debt securities

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

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

Mutual funds - equity securities

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

Equity securities

     3,866         245         620         2         4,486         247   

Other invested assets

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

A reconciliation of the Partnership’s merchandise trust activities for the years ended December 31, 2015 and 2014 is presented below (in thousands):

 

     Years Ended December 31,  
     2015      2014  

Balance - beginning of period

   $ 484,820       $ 431,556   

Contributions

     80,693         87,271   

Distributions

     (50,987      (57,788

Interest and dividends

     21,859         21,827   

Capital gain distributions

     2,413         1,242   

Realized gains and losses

     13,941         14,857   

Other than temporary impairment

     (54,527      —     

Taxes

     (3,271      (2,543

Fees

     (3,296      (2,890

Unrealized change in fair value

     (26,969      (8,712
  

 

 

    

 

 

 

Balance - end of period

   $ 464,676       $ 484,820   
  

 

 

    

 

 

 

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

 

                 Gross      Gross        
     Fair Value           Unrealized      Unrealized     Fair  

December 31, 2015

   Hierarchy Level    Cost      Gains      Losses     Value  

Short-term investments

   1    $ 35,150       $ —         $ —        $ 35,150   

Fixed maturities:

             

U.S. State and local government agency

   2      98         6         (3     101   

Corporate debt securities

   2      11,922         8         (546     11,384   

Other debt securities

   2      7,150         11         (7     7,154   
     

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

        19,170         25         (556     18,639   
     

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

   1      232,096         86         (10,713     221,469   

Mutual funds - equity securities

   1      139,341         69         (12,249     127,161   

Equity securities

   1      49,563         1,127         (2,474     48,216   

Other invested assets

   2      1,681         —           —          1,681   
     

 

 

    

 

 

    

 

 

   

 

 

 

Total managed investments

      $ 477,001       $ 1,307       $ (25,992   $ 452,316   
     

 

 

    

 

 

    

 

 

   

 

 

 

Assets acquired via acquisition

        4,185         —           —          4,185   

West Virginia Trust Receivable

        8,175         —           —          8,175   
     

 

 

    

 

 

    

 

 

   

 

 

 

            Total

      $ 489,361       $ 1,307       $ (25,992   $ 464,676   
     

 

 

    

 

 

    

 

 

   

 

 

 
                 Gross      Gross        
     Fair Value           Unrealized      Unrealized     Fair  

December 31, 2014

   Hierarchy Level    Cost      Gains      Losses     Value  

Short-term investments

   1    $ 52,521       $ —         $ —        $ 52,521   

Fixed maturities:

             

U.S. State and local government agency

   2      270         —           (1     269   

Corporate debt securities

   2      9,400         23         (447     8,976   

Other debt securities

   2      7,157         —           (18     7,139   
     

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed maturities

        16,827         23         (466     16,384   
     

 

 

    

 

 

    

 

 

   

 

 

 

Mutual funds - debt securities

   1      150,477         869         (8,666     142,680   

Mutual funds - equity securities

   1      167,353         12,568         (463     179,458   

Equity securities

   1      81,639         4,167         (5,507     80,299   

Other invested assets

   2      5,400         —           (241     5,159   
     

 

 

    

 

 

    

 

 

   

 

 

 

Total managed investments

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

 

 

    

 

 

    

 

 

   

 

 

 

West Virginia Trust Receivable

        8,319         —           —          8,319   
     

 

 

    

 

 

    

 

 

   

 

 

 

            Total

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

 

 

    

 

 

    

 

 

   

 

 

 

The contractual maturities of debt securities held within the merchandise trusts as of December 31, 2015 were as follows (in thousands):

 

     Less than      1 year through      6 years through      More than  

December 31, 2015

   1 year      5 years      10 years      10 years  

U.S. State and local government agency

   $ —         $ 23       $ 78       $ —     

Corporate debt securities

     —           8,152         3,232         —     

Other debt securities

     3,520         3,634         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

   $ 3,520       $ 11,809       $ 3,310       $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 

An aging of unrealized losses on the Partnership’s investments in debt and equity securities within the merchandise trusts at December 31, 2015 and December 31, 2014 is presented below:

 

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

December 31, 2015

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

U.S. State and local government agency

   $ —         $ —         $ 33       $ 3       $ 33       $ 3   

Corporate debt securities

     7,247         411         1,513         135         8,760         546   

Other debt securities

     2,883         7         —           —           2,883         7   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

     10,130         418         1,546         138         11,676         556   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

     121,777         6,938         36,682         3,775         158,459         10,713   

Mutual funds - equity securities

     58,467         10,994         5,465         1,255         63,932         12,249   

Equity securities

     21,480         2,275         649         199         22,129         2,474   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 211,854       $ 20,625       $ 44,342       $ 5,367       $ 256,196       $ 25,992   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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

December 31, 2014

   Value      Losses      Value      Losses      Value      Losses  
     (in thousands)  

Fixed maturities:

                 

U.S. State and local government agency

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

Corporate debt securities

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

Other debt securities

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed maturities

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Mutual funds - debt securities

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

Mutual funds - equity securities

     4,147         463         —           —           4,147         463   

Equity securities

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

Other invested assets

     —           —           4,881         241         4,881         241   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
GOODWILL AND INTANGIBLE ASSETS (Tables)

A rollforward of goodwill by reportable segment is as follows (in thousands):

 

     Cemeteries      Funeral Homes      Total  

Balance at December 31, 2013

   $ 18,122       $ 30,615       $ 48,737   

Goodwill from acquisitions during 2014

     6,064         4,035         10,099   
  

 

 

    

 

 

    

 

 

 

Balance at December 31, 2014

     24,186         34,650         58,836   

Goodwill from acquisitions during 2015

     1,134         9,881         11,015   
  

 

 

    

 

 

    

 

 

 

Balance at December 31, 2015

   $ 25,320       $ 44,531       $ 69,851   
  

 

 

    

 

 

    

 

 

 

The following table reflects the components of intangible assets at December 31, 2015 and 2014 (in thousands):

 

     December 31, 2015      December 31, 2014  
     Gross Carrying      Accumulated     Net Intangible      Gross Carrying      Accumulated     Net Intangible  
     Amount      Amortization     Asset      Amount      Amortization     Asset  

Lease and management agreements

   $ 59,758       $ (1,577   $ 58,181       $ 59,758       $ (581   $ 59,177   

Underlying contract value

     6,239         (1,014     5,225         6,239         (858     5,381   

Non-compete agreements

     5,656         (3,112     2,544         5,250         (2,126     3,124   

Other intangible assets

     1,439         (180     1,259         1,439         (131     1,308   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total intangible assets

   $ 73,092       $ (5,883   $ 67,209       $ 72,686       $ (3,696   $ 68,990   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

The following is estimated amortization expense related to intangible assets with finite lives for the five years subsequent to December 31, 2015 (in thousands):

 

2016

   $ 2,181   

2017

   $ 1,956   

2018

   $ 1,708   

2019

   $ 1,440   

2020

   $ 1,266   
LONG-TERM DEBT (Tables)

Total debt consists of the following at the dates indicated (in thousands):

 

     December 31,  
     2015      2014  

Credit Facility:

     

Working Capital Draws

   $ 105,000       $ 85,902   

Acquisition Draws

     44,500         25,000   

7.875% Senior Notes, due June 2021

     172,186         171,783   

Notes payable - acquisition debt

     687         861   

Notes payable - acquisition non-competes

     1,629         2,451   

Insurance and vehicle financing

     2,336         1,632   

Less deferred financing costs, net of accumulated amortization

     (7,499      (9,089
  

 

 

    

 

 

 

Total debt

     318,839         278,540   

Less current maturities

     (2,440      (2,251
  

 

 

    

 

 

 

Total long-term debt

   $ 316,399       $ 276,289   
  

 

 

    

 

 

 

At any time on or after June 1, 2016, we may redeem the Senior Notes, in whole or in part, at the redemption prices (expressed as percentages of the principal amount) set forth below, together with accrued and unpaid interest, if any, to the redemption date, if redeemed during the 12-month period beginning June 1 of the years indicated:

 

Year

   Percentage  

2016

     105.906

2017

     103.938

2018

     101.969

2019 and thereafter

     100.000
INCOME TAXES (Tables)

Income tax expense (benefit) for the years ended December 31, 2015, 2014 and 2013 consisted of the following (in thousands):

 

     Years Ended December 31,  
     2015      2014      2013  

Current provision:

        

State

   $ 723       $ 869       $ 685   

Federal

     —           —           —     

Foreign

     229         302         (125
  

 

 

    

 

 

    

 

 

 

Total

     952         1,171         560   
  

 

 

    

 

 

    

 

 

 

Deferred provision:

        

State

     (368      351         187   

Federal

     230         2,535         (4,261

Foreign

     124         —           —     
  

 

 

    

 

 

    

 

 

 

Total

     (14      2,886         (4,074
  

 

 

    

 

 

    

 

 

 

Total income tax expense (benefit)

   $ 938       $ 4,057       $ (3,514
  

 

 

    

 

 

    

 

 

 

A reconciliation of the federal statutory tax rate to the Partnership’s effective tax rate is as follows (in thousands):

 

     Years Ended December 31,  
     2015     2014     2013  

Computed tax provision (benefit) at the applicable statutory tax rate

     35.0     35.0     35.0

State and local taxes net of federal income tax benefit

     -1.6     -12.2     -1.5

Tax exempt (income) loss

     -4.5     -21.4     -6.7

Change in valuation allowance

     -65.6     -223.3     -37.7

Partnership earnings not subject to tax

     32.4     137.3     11.0

Permanent differences

     0.2     1.3     14.4

Other

     -0.1     -1.0     0.7
  

 

 

   

 

 

   

 

 

 

Income tax expense (benefit)

     -4.2     -84.3     15.2
  

 

 

   

 

 

   

 

 

 

Significant components of the deferred tax assets and liabilities were as follows (in thousands):

 

     December 31,  
     2015      2014  

Deferred tax assets:

     

Prepaid expenses

   $ 7,626       $ 5,373   

State net operating loss

     14,260         13,015   

Federal net operating loss

     92,688         79,201   

Other

     67         (831

Valuation allowance

     (76,468      (58,749
  

 

 

    

 

 

 

Total deferred tax assets

     38,173         38,009   
  

 

 

    

 

 

 

Deferred tax liabilities:

     

Property, plant and equipment

     9,290         8,058   

Deferred revenue related to future revenues and accounts receivable

     37,241         38,623   

Deferred revenue related to cemetery property

     9,208         8,939   
  

 

 

    

 

 

 

Total deferred tax liabilities

     55,739         55,620   
  

 

 

    

 

 

 

Net deferred tax liabilities

   $ 17,566       $ 17,611   
  

 

 

    

 

 

 

Net deferred tax assets and liabilities were classified on the consolidated balance sheets as follows:

 

Deferred tax assets

   $ 181       $ 181   
  

 

 

    

 

 

 

Noncurrent assets

     181         181   
  

 

 

    

 

 

 

Deferred tax assets

     37,992         37,828   

Deferred tax liabilities

     55,739         55,620   
  

 

 

    

 

 

 

Noncurrent liabilities

     17,747         17,792   
  

 

 

    

 

 

 

Net deferred tax liabilities

   $ 17,566       $ 17,611   
  

 

 

    

 

 

 
DEFERRED REVENUES (Tables)
Deferred Revenues

At December 31, 2015 and 2014, deferred revenues, consisted of the following (in thousands):

 

     December 31,  
     2015      2014  

Deferred contract revenues

   $ 759,812       $ 693,287   

Deferred merchandise trust revenue

     80,294         104,717   

Deferred merchandise trust unrealized gains (losses)

     (24,685      2,284   
  

 

 

    

 

 

 

Deferred revenues

   $ 815,421       $ 800,288   
  

 

 

    

 

 

 

Deferred selling and obtaining costs

   $ 111,542       $ 97,795   
LONG-TERM INCENTIVE AND RETIREMENT PLANS (Tables)

The following table sets forth the UAR award activity for the years ended December 31, 2015, 2014 and 2013:

 

     Years Ended December 31,  
     2015      2014      2013  

Outstanding, beginning of period

     123,000         673,716         774,598   

Granted

     —           15,000         52,500   

Exercised

     (50,477      (554,466      (133,110

Forfeited

     (5,730      (11,250      (20,272
  

 

 

    

 

 

    

 

 

 

Outstanding, end of period (1)

     66,793         123,000         673,716   
  

 

 

    

 

 

    

 

 

 

Exercisable, end of period

     33,092         57,090         594,248   

 

(1) Based on the closing price of the common units on December 31, 2015 the estimated intrinsic value of the outstanding UARs was $0.1 million. The weighted average remaining contractual life for outstanding UAR awards at December 31, 2015 was 2.6 years.

A summary of the weighted-average assumptions used in the valuation are presented below:

 

     Years Ended December 31,  
     2014     2013  

Expected dividend yield

     9.95     9.14

Risk-free interest rate

     1.06     0.63

Expected volatility

     27.13     28.57

Expected life (in years)

     3.52        3.52   

Fair value per UAR granted

   $ 1.60      $ 2.09   

The following table sets forth the 2014 LTIP phantom unit award activity for the years ended December 31, 2015, and 2014, respectively:

 

     Years Ended December 31,  
     2015      2014  

Outstanding, beginning of period

     2,189         —     

Granted (1)

     122,154         2,189   

Settled in common units or cash (1)

     (14,455      —     

Performance vesting forfeiture

     (7,227      —     
  

 

 

    

 

 

 

Outstanding, end of period (2)

     102,661         2,189   
  

 

 

    

 

 

 

 

(1) The weighted-average grant date fair value for the unit awards on the date of grant was $26.94 and $26.27 for the years ended December 31, 2015 and 2014, respectively. The intrinsic values of unit awards vested during the years ended December 31, 2015 and 2014 were $0.6 million and $0.1 million, respectively.
(2) Based on the closing price of the common units on December 31, 2015, the estimated intrinsic value of the outstanding unit awards was $2.7 million at December 31, 2015.

The following table sets forth the 2004 LTIP phantom unit award activity for the years ended December 31, 2015, 2014 and 2013, respectively:

 

     Years Ended December 31,  
     2015      2014      2013  

Outstanding, beginning of period

     169,122         162,103         143,213   

Granted (1)

     15,335         23,003         18,890   

Settled in common units or cash

     —           (15,984      —     
  

 

 

    

 

 

    

 

 

 

Outstanding, end of period (2)

     184,457         169,122         162,103   
  

 

 

    

 

 

    

 

 

 

 

(1) The weighted-average grant date fair value for the phantom unit awards on the date of grant was $28.42, $24.90, and $25.29 for the years ended December 31, 2015, 2014 and 2013, respectively. The intrinsic values of phantom unit awards vested during the years ended December 31, 2015, 2014 and 2013 were $0.9 million, $1.0 million and $0.8 million, respectively.
(2) Based on the closing price of the common units on December 31, 2015, the estimated intrinsic value of the outstanding restricted phantom units was $4.9 million.
COMMITMENTS AND CONTINGENCIES (Tables)
Operating Leases Future Payments

The aggregate amount of remaining future minimum lease payments as of December 31, 2015 is as follows (in thousands):

 

2016

   $ 3,356   

2017

     3,520   

2018

     3,411   

2019

     3,069   

2020

     1,784   

Thereafter

     10,471   
  

 

 

 

Total

   $ 25,611   
  

 

 

 
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

CONDENSED CONSOLIDATING BALANCE SHEETS

 

            Subsidiary      Guarantor      Non-Guarantor               
December 31, 2015    Parent      Issuer      Subsidiaries      Subsidiaries      Eliminations     Consolidated  

Assets

                

Current assets:

                

Cash and cash equivalents

   $ —         $ —         $ 11,869       $ 3,284       $ —        $ 15,153   

Other current assets

     —           4,858         78,464         12,701         —          96,023   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total current assets

     —           4,858         90,333         15,985         —          111,176   

Long-term accounts receivable

     —           2,888         80,969         11,310         —          95,167   

Cemetery property and equipment

     —           1,084         418,400         31,100         —          450,584   

Merchandise trusts

     —           —           —           464,676         —          464,676   

Perpetual care trusts

     —           —           —           307,804         —          307,804   

Deferred selling and obtaining costs

     —           5,967         91,275         14,300         —          111,542   

Goodwill and intangible assets

     —           —           78,223         58,837         —          137,060   

Other assets

     —           —           14,153         2,195         —          16,348   

Due from affiliates

     67,890         122,089         436,811         —           (626,790     —     

Investment in affiliates

     181,546         43,550         —           —           (225,096     —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total assets

   $ 249,436       $ 180,436       $ 1,210,164       $ 906,207       $ (851,886   $ 1,694,357   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Liabilities and Equity

                

Current liabilities

   $ —         $ 12       $ 33,083       $ 837       $ —        $ 33,932   

Long-term debt, net of deferred financing costs

     67,890         104,295         144,214         —           —          316,399   

Deferred revenues

     —           40,467         697,516         77,438         —          815,421   

Perpetual care trust corpus

     —           —           —           307,804         —          307,804   

Other long-term liabilities

     —           —           29,761         9,494         —          39,255   

Due to affiliates

     —           —           172,185         454,605         (626,790     —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total liabilities

     67,890         144,774         1,076,759         850,178         (626,790     1,512,811   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Partners’ Capital

     181,546         35,662         133,405         56,029         (225,096     181,546   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total liabilities and partners’ capital

   $ 249,436       $ 180,436       $ 1,210,164       $ 906,207       $ (851,886   $ 1,694,357   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

December 31, 2014    Parent      Subsidiary
Issuer
     Guarantor
Subsidiaries
     Non-Guarantor
Subsidiaries
     Eliminations     Consolidated  

Assets

                

Current assets:

                

Cash and cash equivalents

   $ —         $ —         $ 7,059       $ 3,342       $ —        $ 10,401   

Other current assets

     —           4,293         81,385         10,675         —          96,353   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total current assets

     —           4,293         88,444         14,017         —          106,754   

Long-term accounts receivable

     —           2,453         76,416         10,667         —          89,536   

Cemetery property and equipment

     —           1,033         411,822         30,223         —          443,078   

Merchandise trusts

     —           —           —           484,820         —          484,820   

Perpetual care trusts

     —           —           —           345,105         —          345,105   

Deferred selling and obtaining costs

     —           5,744         81,195         10,856         —          97,795   

Goodwill and intangible assets

     —           —           67,993         59,833         —          127,826   

Other assets

     —           —           2,294         2,246         —          4,540   

Due from affiliates

     67,700         133,569         436,421         —           (637,690     —     

Investment in affiliates

     205,610         64,429         8,166         —           (278,205     —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total assets

   $ 273,310       $ 211,521       $ 1,172,751       $ 957,767       $ (915,895   $ 1,699,454   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Liabilities and Equity

                

Current liabilities

   $ —         $ 263       $ 35,888       $ 815       $ —        $ 36,966   

Long-term debt, net of deferred financing costs

     67,700         104,100         104,489         —           —          276,289   

Deferred revenues

     —           44,287         684,631         71,370         —          800,288   

Perpetual care trust corpus

     —           —           —           345,105         —          345,105   

Other long-term liabilities

     —           —           26,429         8,767         —          35,196   

Due to affiliates

     —           —           171,800         465,890         (637,690     —     

Total liabilities

     67,700         148,650         1,023,237         891,947         (637,690     1,493,844   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Partners’ Capital

     205,610         62,871         149,514         65,820         (278,205     205,610   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total liabilities and partners’ capital

   $ 273,310       $ 211,521       $ 1,172,751       $ 957,767       $ (915,895   $ 1,699,454   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

 

           Subsidiary     Guarantor     Non-Guarantor              
Year Ended December 31, 2015    Parent     Issuer     Subsidiaries     Subsidiaries     Eliminations     Consolidated  

Total revenues

   $ —        $ 5,751      $ 275,795      $ 48,338      $ (10,299   $ 319,585   

Total cost and expenses

     —          (10,656     (269,748     (47,290     10,299        (317,395

Other income (loss)

     —          —          (1,891     —          —          (1,891

Net loss from equity investment in subsidiaries

     (17,790     (21,031     —          —          38,821        —     

Interest expense

     (5,434     (8,348     (8,075     (728     —          (22,585
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) before income taxes

     (23,224     (34,284     (3,919     320        38,821        (22,286
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income tax benefit (expense)

     —          —          (938     —          —          (938
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ (23,224   $ (34,284   $ (4,857   $ 320      $ 38,821      $ (23,224
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

           Subsidiary     Guarantor     Non-Guarantor              
Year Ended December 31, 2014    Parent     Issuer     Subsidiaries     Subsidiaries     Eliminations     Consolidated  

Total revenues

   $ —        $ 8,270      $ 269,712      $ 37,938      $ (12,131   $ 303,789   

Total cost and expenses

     —          (11,581     (248,307     (40,127     12,131        (287,884

Other income (loss)

     —          —          890        —          —          890   

Net loss from equity investment in subsidiaries

     (3,438     (11,335     —          —          14,773        —     

Interest expense

     (5,434     (8,347     (7,430     (399     —          (21,610
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) before income taxes

     (8,872     (22,993     14,865        (2,588     14,773        (4,815
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income tax benefit (expense)

     —          —          (4,057     —          —          (4,057
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ (8,872   $ (22,993   $ 10,808      $ (2,588   $ 14,773      $ (8,872
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

           Subsidiary     Guarantor     Non-Guarantor              
Year Ended December 31, 2013    Parent     Issuer     Subsidiaries     Subsidiaries     Eliminations     Consolidated  

Total revenues

   $ —        $ 5,762      $ 234,979      $ 29,854      $ (15,069   $ 255,526   

Total cost and expenses

     —          (8,550     (223,054     (34,386     15,069        (250,921

Other income (loss)

     —          12,261        (18,910     —          —          (6,649

Net loss from equity investment in subsidiaries

     (14,166     (6,201     —          —          20,367        —     

Interest expense

     (5,434     (8,347     (7,289     —          —          (21,070
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) before income taxes

     (19,600     (5,075     (14,274     (4,532     20,367        (23,114
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income tax benefit (expense)

     —          —          3,514        —          —          3,514   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ (19,600   $ (5,075   $ (10,760   $ (4,532   $ 20,367      $ (19,600
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

 

Year Ended December 31, 2015    Parent     Subsidiary
Issuer
    Guarantor
Subsidiaries
    Non-Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net cash provided by (used in) operating activities

   $ 2,356      $ 284      $ 14,626      $ 2,933      $ (16,137   $ 4,062   

Cash Flows From Investing Activities:

            

Cash paid for acquisitions and capital expenditures

     —          (284     (30,864     (2,991     —          (34,139
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     —          (284     (30,864     (2,991     —          (34,139
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows From Financing Activities:

            

Cash distributions

     (77,512     —          —          —          —          (77,512

Payments to affiliates

     —          —          (16,137     —          16,137        —     

Net borrowings and repayments of debt

     —          —          37,261        —          —          37,261   

Proceeds from issuance of common units

     75,156        —          —          —          —          75,156   

Other financing activities

     —          —          (76     —          —          (76
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (2,356     —          21,048        —          16,137        34,829   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     —          —          4,810        (58     —          4,752   

Cash and cash equivalents - Beginning of period

     —          —          7,059        3,342        —          10,401   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents - End of period

   $ —        $ —        $ 11,869      $ 3,284      $ —        $ 15,153   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

           Subsidiary     Guarantor     Non-Guarantor              
Year Ended December 31, 2014    Parent     Issuer     Subsidiaries     Subsidiaries     Eliminations     Consolidated  

Net cash provided by operating activities

   $ —        $ 150      $ 29,918      $ 3,161      $ (13,781   $ 19,448   

Cash Flows From Investing Activities:

            

Cash paid for acquisitions and capital expenditures

     —          (150     (67,777     (2,731     —          (70,658

Consideration for lease and management agreements

     —          —          —          (53,000     —          (53,000

Payments to affiliates

     (110,661     —          (53,000     —          163,661        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (110,661     (150     (120,777     (55,731     163,661        (123,658
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows From Financing Activities:

            

Cash distributions

     (62,836     —          —          —          —          (62,836

Payments from affiliates

     —          —          96,880        53,000        (149,880     —     

Net borrowings and repayments of debt

     —          —          (5,275     —          —          (5,275

Proceeds from issuance of common units

     173,497        —          —          —          —          173,497   

Other financing activities

     —          —          (2,950     —          —          (2,950
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     110,661        —          88,655        53,000        (149,880     102,436   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     —          —          (2,204     430        —          (1,774

Cash and cash equivalents - Beginning of period

     —          —          9,263        2,912        —          12,175   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents - End of period

   $ —        $ —        $ 7,059      $ 3,342      $ —        $ 10,401   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

           Subsidiary     Guarantor     Non-Guarantor              
Year Ended December 31, 2013    Parent     Issuer     Subsidiaries     Subsidiaries     Eliminations     Consolidated  

Net cash provided by (used in) operating activities

   $ 13,676      $ 73      $ 49,544      $ (759   $ (27,457   $ 35,077   

Cash Flows From Investing Activities:

            

Cash paid for acquistions and capital expenditures

     —          (73     (26,299     (325     —          (26,697
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     —          (73     (26,299     (325     —          (26,697
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows From Financing Activities:

            

Cash distributions

     (52,053     —          —          —          —          (52,053

Payments to affiliates

     —          —          (27,457     —          27,457        —     

Net borrowings and repayments of debt

     —          —          29,570        —          —          29,570   

Proceeds from issuance of common units

     38,377        —          —          —          —          38,377   

Other financing activities

     —          —          (20,045     —          —          (20,045
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (13,676     —          (17,932     —          27,457        (4,151
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     —          —          5,313        (1,084     —          4,229   

Cash and cash equivalents - Beginning of period

     —          —          3,950        3,996        —          7,946   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents - End of period

   $ —        $ —        $ 9,263      $ 2,912      $ —        $ 12,175   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

SEGMENT INFORMATION (Tables)
Segment Information

Operating segment data for the periods indicated were as follows (in thousands):

 

     Years Ended December 31  
     2015      2014      2013  

Cemetery Operations:

        

Revenues

   $ 261,815       $ 255,103       $ 210,571   

Operating costs and expenses

     (218,570      (202,370      (175,793

Depreciation and amortization

     (7,766      (6,904      (5,336
  

 

 

    

 

 

    

 

 

 

Segment income

   $ 35,479       $ 45,829       $ 29,442   
  

 

 

    

 

 

    

 

 

 

Funeral Homes:

        

Revenues

   $ 57,770       $ 48,686       $ 44,955   

Operating costs and expenses

     (47,413      (39,710      (35,654

Depreciation and amortization

     (3,257      (3,200      (3,036
  

 

 

    

 

 

    

 

 

 

Segment income

   $ 7,100       $ 5,776       $ 6,265   
  

 

 

    

 

 

    

 

 

 

Reconciliation of segment income to net loss:

        

Cemeteries

   $ 35,479       $ 45,829       $ 29,442   

Funeral homes

     7,100         5,776         6,265   
  

 

 

    

 

 

    

 

 

 

Total segment income

     42,579         51,605         35,707   
  

 

 

    

 

 

    

 

 

 

Corporate overhead

     (38,609      (34,723      (29,926

Corporate depreciation and amortization

     (1,780      (977      (1,176

Other net gains (losses)

     (1,891      890         (6,649

Interest expense

     (22,585      (21,610      (21,070

Income tax benefit (expense)

     (938      (4,057      3,514   
  

 

 

    

 

 

    

 

 

 

Net loss

   $ (23,224    $ (8,872    $ (19,600
  

 

 

    

 

 

    

 

 

 

Capital expenditures:

        

Cemeteries

   $ 11,853       $ 13,368       $ 10,111   

Funeral homes

     580         545         1,250   

Corporate

     2,906         661         1,391   
  

 

 

    

 

 

    

 

 

 

Total capital expenditures

   $ 15,339       $ 14,574       $ 12,752   
  

 

 

    

 

 

    

 

 

 

Balance sheet information:

        

Total assets - Cemetery Operations

   $ 1,481,926       $ 1,517,073       $ 1,319,660   

Total assets - Funeral Homes

     190,443         164,925         135,232   

Total assets - Corporate

     21,988         17,456         20,513   
  

 

 

    

 

 

    

 

 

 

Total assets

   $ 1,694,357       $ 1,699,454       $ 1,475,405   
  

 

 

    

 

 

    

 

 

 

Goodwill - Cemetery Operations

   $ 25,320       $ 24,186       $ 18,122   

Goodwill - Funeral Homes

     44,531         34,650         30,615   
  

 

 

    

 

 

    

 

 

 

Total goodwill

   $ 69,851       $ 58,836       $ 48,737   
  

 

 

    

 

 

    

 

 

 
General - Additional Information (Detail) (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Segment
Dec. 31, 2014
Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Number of distinct reportable segments
 
 
 
 
 
 
 
 
 
 
Total revenue derived from the cemeteries under agreements
$ 82,811,000 
$ 81,768,000 
$ 84,513,000 
$ 70,493,000 
$ 78,025,000 
$ 82,435,000 
$ 75,432,000 
$ 67,897,000 
$ 319,585,000 
$ 303,789,000 
$ 255,526,000 
Inventories
9,700,000 
 
 
 
5,600,000 
 
 
 
9,700,000 
5,600,000 
 
Pre-need sales, prime rate plus base points
 
 
 
 
 
 
 
 
1.50% 
 
 
Pre-need sales, interest rate
 
 
 
 
 
 
 
 
4.75% 
4.75% 
4.75% 
Sales of cemetery, average cancellation percentage
10.00% 
 
 
 
 
 
 
 
10.00% 
 
 
Maximum
 
 
 
 
 
 
 
 
 
 
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Liquid investments purchased with an original maturity
 
 
 
 
 
 
 
 
3 months 
 
 
Pre-need sales, installment contract period
 
 
 
 
 
 
 
 
60 months 
 
 
Managed Properties |
Cemetery property
 
 
 
 
 
 
 
 
 
 
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total revenue derived from the cemeteries under agreements
 
 
 
 
 
 
 
 
53,500,000 
43,400,000 
33,900,000 
Consolidated Properties |
Cemetery property
 
 
 
 
 
 
 
 
 
 
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Number of operating locations
16 
 
 
 
 
 
 
 
16 
 
 
Total Asset
 
 
 
 
 
 
 
 
 
 
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Retrospective adjustment made pursuant of the current accounting change
 
 
 
 
(9,100,000)
 
 
 
 
(9,100,000)
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
 
 
 
 
 
 
 
 
 
(9,100,000)
 
Total Liabilities
 
 
 
 
 
 
 
 
 
 
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Retrospective adjustment made pursuant of the current accounting change
 
 
 
 
9,100,000 
 
 
 
 
9,100,000 
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
 
 
 
 
 
 
 
 
 
9,100,000 
 
Cemetery
 
 
 
 
 
 
 
 
 
 
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total revenue derived from the cemeteries under agreements
 
 
 
 
 
 
 
 
261,815,000 
255,103,000 
210,571,000 
Cemetery |
Unconsolidated Properties
 
 
 
 
 
 
 
 
 
 
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Number of operating locations
15 
 
 
 
 
 
 
 
15 
 
 
Cemetery |
Unconsolidated Properties |
Second Quarter 2014 Acquisition
 
 
 
 
 
 
 
 
 
 
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Number of operating locations
13 
 
 
 
 
 
 
 
13 
 
 
Cemetery |
US and Puerto Rico
 
 
 
 
 
 
 
 
 
 
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Number of operating locations
307 
 
 
 
 
 
 
 
307 
 
 
Number of states
27 
 
 
 
 
 
 
 
27 
 
 
Cemetery |
US and Puerto Rico |
Managed Properties
 
 
 
 
 
 
 
 
 
 
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Number of operating locations
31 
 
 
 
 
 
 
 
31 
 
 
Cemetery |
US and Puerto Rico |
Wholly Owned Properties
 
 
 
 
 
 
 
 
 
 
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Number of operating locations
276 
 
 
 
 
 
 
 
276 
 
 
Funeral Home
 
 
 
 
 
 
 
 
 
 
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total revenue derived from the cemeteries under agreements
 
 
 
 
 
 
 
 
$ 57,770,000 
$ 48,686,000 
$ 44,955,000 
Funeral Home |
US and Puerto Rico
 
 
 
 
 
 
 
 
 
 
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Number of operating locations
105 
 
 
 
 
 
 
 
105 
 
 
Number of states
19 
 
 
 
 
 
 
 
19 
 
 
Estimated Useful Lives of Properties and Equipment (Detail)
12 Months Ended
Dec. 31, 2015
Building and improvements |
Minimum
 
Property, Plant and Equipment [Line Items]
 
Estimated useful life
10 years 
Building and improvements |
Maximum
 
Property, Plant and Equipment [Line Items]
 
Estimated useful life
40 years 
Furniture and equipment |
Minimum
 
Property, Plant and Equipment [Line Items]
 
Estimated useful life
3 years 
Furniture and equipment |
Maximum
 
Property, Plant and Equipment [Line Items]
 
Estimated useful life
10 years 
Leasehold Improvements
 
Property, Plant and Equipment [Line Items]
 
Leasehold improvements
over the shorter of the term of the lease or the life of the asset 
Reconciliation of Net Income (Loss) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Distribution Made to Limited Partner [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net loss
$ (6,810)
$ (3,260)
$ (4,644)
$ (8,510)
$ (6,421)
$ (2,691)
$ (97)
$ 337 
$ (23,224)
$ (8,872)
$ (19,600)
Less: Incentive distribution right ("IDR") payments to general partner
 
 
 
 
 
 
 
 
3,961 
2,250 
1,296 
Net loss to allocate to general and limited partners
 
 
 
 
 
 
 
 
(27,185)
(11,122)
(20,896)
General partner's interest excluding IDRs
 
 
 
 
 
 
 
 
(353)
(151)
(385)
Net loss attributable to common limited partners
$ (7,814)
$ (4,280)
$ (5,543)
$ (9,195)
$ (7,044)
$ (3,274)
$ (623)
$ (30)
$ (26,832)
$ (10,971)
$ (20,511)
Reconciliation of Partnership's Weighted Average Number of Common Limited Partner Units (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Distribution Made to Limited Partner [Line Items]
 
 
 
Weighted average number of common limited partner units - basic
$ 30,472 
$ 26,582 
$ 20,954 
Add effect of dilutive incentive awards
1
1
1
Weighted average number of common limited partner units - diluted
$ 30,472 
$ 26,582 
$ 20,954 
Reconciliation of Partnership's Weighted Average Number of Common Limited Partner Units (Parenthetical) (Detail)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Distribution Made to Limited Partner [Line Items]
 
 
 
Units excluded from the calculation of diluted weighted average number of limited partners' units, because of their anti-dilutive effect
282,093 
164,709 
297,078 
Restatement of Previously Issued Consolidated Financial Statements - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Net loss allocated to the limited partner
$ (7,814)
$ (4,280)
$ (5,543)
$ (9,195)
$ (7,044)
$ (3,274)
$ (623)
$ (30)
$ (26,832)
$ (10,971)
$ (20,511)
 
Net loss allocated to the general partner
1,004 
1,020 
899 
685 
623 
583 
526 
367 
(3,608)
(2,099)
(911)
 
Common limited partners' interest
181,531 
 
 
 
204,593 
 
 
 
181,531 
204,593 
 
 
General partner interest
15 
 
 
 
1,017 
 
 
 
15 
1,017 
 
 
Deferred revenues
815,421 
 
 
 
800,288 
 
 
 
815,421 
800,288 
 
 
Cost of goods sold
 
 
 
 
 
 
 
 
52,019 
47,311 
38,522 
 
Goodwill
69,851 
 
 
 
58,836 
 
 
 
69,851 
58,836 
48,737 
 
Net intangible asset
67,209 
 
 
 
68,990 
 
 
 
67,209 
68,990 
 
 
Cemetery property
334,457 
 
 
 
332,659 
 
 
 
334,457 
332,659 
 
 
Property and equipment, net of accumulated depreciation
116,127 
 
 
 
110,419 
 
 
 
116,127 
110,419 
 
 
Accounts payable and accrued liabilities
29,989 
 
 
 
33,496 
 
 
 
29,989 
33,496 
 
 
Partners' Capital
181,546 
 
 
 
205,610 
 
 
 
181,546 
205,610 
102,754 
130,942 
Other long-term liabilities
21,508 
 
 
 
17,404 
 
 
 
21,508 
17,404 
 
 
Income tax benefit (expense)
 
 
 
 
 
 
 
 
(938)
(4,057)
3,514 
 
Deferred tax assets
181 
 
 
 
181 
 
 
 
181 
181 
 
 
Deferred tax liabilities
17,747 
 
 
 
17,792 
 
 
 
17,747 
17,792 
 
 
Cemetery
 
 
 
 
 
 
 
 
 
 
 
 
Merchandise revenues
 
 
 
 
 
 
 
 
143,044 
145,922 
118,936 
 
Services revenues
 
 
 
 
 
 
 
 
59,176 
54,557 
46,388 
 
Goodwill
25,320 
 
 
 
24,186 
 
 
 
25,320 
24,186 
18,122 
 
Investment and other
 
 
 
 
 
 
 
 
59,595 
54,624 
45,247 
 
Restatement Adjustments
 
 
 
 
 
 
 
 
 
 
 
 
Net loss allocated to the limited partner
(791)
(920)
(760)
(432)
646 
(50)
(514)
(435)
(2,903)
(353)
(1,829)
 
Net loss allocated to the general partner
1,092 
1,062 
964 
805 
729 
627 
535 
363 
(3,923)
(2,254)
(1,261)
 
Common limited partners' interest
(12,185)
 
 
 
(9,282)
 
 
 
(12,185)
(9,282)
 
 
General partner interest
10,053 
 
 
 
6,130 
 
 
 
10,053 
6,130 
 
 
Merchandise liability
(173,097)
 
 
 
(150,192)
 
 
 
(173,097)
(150,192)
 
 
Deferred revenues
815,421 
 
 
 
800,288 
 
 
 
815,421 
800,288 
 
 
Deferred cemetery revenues, net
(637,536)
 
 
 
(643,408)
 
 
 
(637,536)
(643,408)
 
 
Cost of goods sold
 
 
 
 
 
 
 
 
13,095 
13,659 
10,663 
 
Goodwill
69,851 
 
 
 
58,836 
 
 
 
69,851 
58,836 
 
 
Net intangible asset
67,209 
 
 
 
68,990 
 
 
 
67,209 
68,990 
 
 
Cemetery property
(8,182)
 
 
 
(7,189)
 
 
 
(8,182)
(7,189)
 
 
Property and equipment, net of accumulated depreciation
11,797 
 
 
 
10,028 
 
 
 
11,797 
10,028 
 
 
Accounts payable and accrued liabilities
(1,886)
 
 
 
(1,886)
 
 
 
(1,886)
(1,886)
 
 
Partners' Capital
(2,132)
 
 
 
(3,152)
 
 
 
(2,132)
(3,152)
(4,766)
(4,240)
Other long-term liabilities
7,548 
 
 
 
7,345 
 
 
 
7,548 
7,345 
 
 
Income tax benefit (expense)
 
 
 
 
 
 
 
 
170 
(144)
1,210 
 
Deferred tax assets
141 
 
 
 
141 
 
 
 
141 
141 
 
 
Deferred tax liabilities
(86)
 
 
 
84 
 
 
 
(86)
84 
 
 
Restatement Adjustments |
Cemetery
 
 
 
 
 
 
 
 
 
 
 
 
Merchandise revenues
 
 
 
 
 
 
 
 
11,182 
13,567 
8,263 
 
Services revenues
 
 
 
 
 
 
 
 
2,933 
2,730 
2,334 
 
Investment and other
 
 
 
 
 
 
 
 
(170)
(593)
(1,712)
 
Restatement Adjustments |
Incentive Distribution Rights
 
 
 
 
 
 
 
 
 
 
 
 
Net loss allocated to the limited partner
 
 
 
 
 
 
 
 
(4,000)
(2,300)
(1,300)
 
Net loss allocated to the general partner
 
 
 
 
 
 
 
 
4,000 
2,300 
1,300 
 
Common limited partners' interest
(10,200)
 
 
 
(6,200)
 
 
 
(10,200)
(6,200)
 
 
General partner interest
10,200 
 
 
 
6,200 
 
 
 
10,200 
6,200 
 
 
Restatement Adjustments |
Presenting of cost component of performance obligations as a liability referred to as ''Merchandise liability'' and offset for these liabilities recognized as a reduction in ''Deferred cemetery revenues, net''
 
 
 
 
 
 
 
 
 
 
 
 
Merchandise liability
(173,100)
 
 
 
(150,200)
 
 
 
(173,100)
(150,200)
 
 
Deferred revenues
173,100 
 
 
 
150,200 
 
 
 
173,100 
150,200 
 
 
Restatement Adjustments |
The Partnership restated its financial statement line item presentation of "Deferred cemetery revenues, net" to "Deferred revenues"
 
 
 
 
 
 
 
 
 
 
 
 
Deferred revenues
637,500 
 
 
 
643,400 
 
 
 
637,500 
643,400 
 
 
Deferred cemetery revenues, net
(637,500)
 
 
 
(643,400)
 
 
 
(637,500)
(643,400)
 
 
Restatement Adjustments |
Historically presented revenue related to assumed obligations from acquisitions on a net basis and determined that the correct presentation of this revenue was on a gross basis
 
 
 
 
 
 
 
 
 
 
 
 
Cost of goods sold
 
 
 
 
 
 
 
 
5,700 
7,200 
4,100 
 
Restatement Adjustments |
Historically presented revenue related to assumed obligations from acquisitions on a net basis and determined that the correct presentation of this revenue was on a gross basis |
Cemetery
 
 
 
 
 
 
 
 
 
 
 
 
Merchandise revenues
 
 
 
 
 
 
 
 
5,100 
6,700 
3,600 
 
Services revenues
 
 
 
 
 
 
 
 
600 
500 
500 
 
Restatement Adjustments |
Historically presented Goodwill and Intangible Assets in one line on Partnership's consolidated balance sheets
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
69,900 
 
 
 
58,800 
 
 
 
69,900 
58,800 
 
 
Net intangible asset
67,200 
 
 
 
69,000 
 
 
 
67,200 
69,000 
 
 
Restatement Adjustments |
Historically recorded funeral home land from acquisitions within "Cemetery Property" and determined that such Funeral home land should be recorded within "Property and equipment"
 
 
 
 
 
 
 
 
 
 
 
 
Cemetery property
(11,800)
 
 
 
(10,000)
 
 
 
(11,800)
(10,000)
 
 
Property and equipment, net of accumulated depreciation
11,800 
 
 
 
10,000 
 
 
 
11,800 
10,000 
 
 
Restatement Adjustments |
Historically recorded deferred cemetery property costs within "Deferred cemetery revenues, net" and determined that such amounts should have been recorded within "Cemetery Property"
 
 
 
 
 
 
 
 
 
 
 
 
Deferred cemetery revenues, net
(3,600)
 
 
 
(2,800)
 
 
 
(3,600)
(2,800)
 
 
Cemetery property
3,600 
 
 
 
2,800 
 
 
 
3,600 
2,800 
 
 
Restatement Adjustments |
Historically recorded the obligation for certain of the Partnership's outstanding phantom unit awards as liabilities and determined that these awards are equity awards and should be classified as equity
 
 
 
 
 
 
 
 
 
 
 
 
Common limited partners' interest
1,900 
 
 
 
1,900 
 
 
 
1,900 
1,900 
 
 
Accounts payable and accrued liabilities
(1,900)
 
 
 
(1,900)
 
 
 
(1,900)
(1,900)
 
 
Restatement Adjustments |
Historically recognized incorrect amounts of investment revenues and expenses related to its merchandise and perpetual care trusts on its consolidated statement of operations and was incorrectly tracking its perpetual care-trusting obligations on its consolidated balance sheets
 
 
 
 
 
 
 
 
 
 
 
 
Deferred revenues
17,900 
 
 
 
16,400 
 
 
 
17,900 
16,400 
 
 
Cost of goods sold
 
 
 
 
 
 
 
 
1,500 
1,300 
500 
 
Partners' Capital
(25,400)
 
 
 
(23,700)
 
 
 
(25,400)
(23,700)
 
 
Other long-term liabilities
7,500 
 
 
 
7,300 
 
 
 
7,500 
7,300 
 
 
Investment and other
 
 
 
 
 
 
 
 
(200)
(600)
(1,700)
 
Restatement Adjustments |
Historically recognized incorrect amounts of revenue from deferred pre-acquisition contracts based on inaccurate system inputs and determined that revenue recognition on such pre-acquisition revenue was understated
 
 
 
 
 
 
 
 
 
 
 
 
Deferred revenues
(16,500)
 
 
 
(14,700)
 
 
 
(16,500)
(14,700)
 
 
Partners' Capital
16,500 
 
 
 
14,700 
 
 
 
16,500 
14,700 
 
 
Restatement Adjustments |
Historically recognized incorrect amounts of revenue from deferred pre-acquisition contracts based on inaccurate system inputs and determined that revenue recognition on such pre-acquisition revenue was understated |
Cemetery
 
 
 
 
 
 
 
 
 
 
 
 
Merchandise revenues
 
 
 
 
 
 
 
 
1,600 
2,200 
1,200 
 
Services revenues
 
 
 
 
 
 
 
 
200 
200 
200 
 
Restatement Adjustments |
Adjustments principally relate to the recognitions accuracy and/or classification of certain amounts in "Deferred cemetery revenues, net", "Merchandise liabilities", and "Other current assets"
 
 
 
 
 
 
 
 
 
 
 
 
Deferred revenues
(1,900)
 
 
 
2,800 
 
 
 
(1,900)
2,800 
 
 
Cost of goods sold
 
 
 
 
 
 
 
 
5,900 
5,100 
6,100 
 
Restatement Adjustments |
Adjustments principally relate to the recognitions accuracy and/or classification of certain amounts in "Deferred cemetery revenues, net", "Merchandise liabilities", and "Other current assets" |
Cemetery
 
 
 
 
 
 
 
 
 
 
 
 
Merchandise revenues
 
 
 
 
 
 
 
 
4,400 
4,700 
3,500 
 
Services revenues
 
 
 
 
 
 
 
 
$ 2,200 
$ 2,000 
$ 1,700 
 
Summary of Effect of Restatement Adjustments on Partnership's Consolidated Balance Sheets (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Other current assets
$ 22,241 
$ 29,142 
 
 
Total current assets
111,176 
106,754 
 
 
Cemetery property
334,457 
332,659 
 
 
Property and equipment
116,127 
110,419 
 
 
Goodwill and intangible assets
137,060 
127,826 
 
 
Goodwill
69,851 
58,836 
48,737 
 
Intangible assets
67,209 
68,990 
 
 
Deferred tax assets
181 
181 
 
 
Other assets
16,167 
4,359 
 
 
Total assets
1,694,357 
1,699,454 
1,475,405 
 
Accounts payable and accrued liabilities
29,989 
33,496 
 
 
Total current liabilities
33,932 
36,966 
 
 
Deferred revenues
815,421 
800,288 
 
 
Deferred tax liabilities
17,747 
17,792 
 
 
Other long-term liabilities
21,508 
17,404 
 
 
Total liabilities
1,512,811 
1,493,844 
 
 
General partner interest
15 
1,017 
 
 
Common limited partners' interest
181,531 
204,593 
 
 
Total partners' capital
181,546 
205,610 
102,754 
130,942 
Total liabilities and partners' capital
1,694,357 
1,699,454 
 
 
As Filed
 
 
 
 
Other current assets
18,863 
24,266 
 
 
Total current assets
107,798 
101,878 
 
 
Cemetery property
342,639 
339,848 
 
 
Property and equipment
104,330 
100,391 
 
 
Goodwill and intangible assets
137,060 
127,826 
 
 
Deferred tax assets
40 
40 
 
 
Other assets
15,069 
3,136 
 
 
Total assets
1,686,125 
1,690,375 
 
 
Accounts payable and accrued liabilities
31,875 
35,382 
 
 
Total current liabilities
35,818 
38,852 
 
 
Deferred cemetery revenues, net
637,536 
643,408 
 
 
Merchandise liability
173,097 
150,192 
 
 
Deferred tax liabilities
17,833 
17,708 
 
 
Other long-term liabilities
13,960 
10,059 
 
 
Total liabilities
1,502,447 
1,481,613 
 
 
General partner interest
(10,038)
(5,113)
 
 
Common limited partners' interest
193,716 
213,875 
 
 
Total partners' capital
183,678 
208,762 
107,520 
135,182 
Total liabilities and partners' capital
1,686,125 
1,690,375 
 
 
Restatement Adjustments
 
 
 
 
Other current assets
3,378 
4,876 
 
 
Total current assets
3,378 
4,876 
 
 
Cemetery property
(8,182)
(7,189)
 
 
Property and equipment
11,797 
10,028 
 
 
Goodwill and intangible assets
(137,060)
(127,826)
 
 
Goodwill
69,851 
58,836 
 
 
Intangible assets
67,209 
68,990 
 
 
Deferred tax assets
141 
141 
 
 
Other assets
1,098 
1,223 
 
 
Total assets
8,232 
9,079 
 
 
Accounts payable and accrued liabilities
(1,886)
(1,886)
 
 
Total current liabilities
(1,886)
(1,886)
 
 
Deferred cemetery revenues, net
(637,536)
(643,408)
 
 
Merchandise liability
(173,097)
(150,192)
 
 
Deferred revenues
815,421 
800,288 
 
 
Deferred tax liabilities
(86)
84 
 
 
Other long-term liabilities
7,548 
7,345 
 
 
Total liabilities
10,364 
12,231 
 
 
General partner interest
10,053 
6,130 
 
 
Common limited partners' interest
(12,185)
(9,282)
 
 
Total partners' capital
(2,132)
(3,152)
(4,766)
(4,240)
Total liabilities and partners' capital
$ 8,232 
$ 9,079 
 
 
Summary of Effect of Restatement Adjustments on Partnership's Consolidated Statements of Operations (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Total revenues
$ 82,811 
$ 81,768 
$ 84,513 
$ 70,493 
$ 78,025 
$ 82,435 
$ 75,432 
$ 67,897 
$ 319,585 
$ 303,789 
$ 255,526 
Cost of goods sold
 
 
 
 
 
 
 
 
52,019 
47,311 
38,522 
Total cost and expenses
 
 
 
 
 
 
 
 
317,395 
287,884 
250,921 
Operating income
 
 
 
 
 
 
 
 
2,190 
15,905 
4,605 
Loss before income taxes
 
 
 
 
 
 
 
 
(22,286)
(4,815)
(23,114)
Income tax benefit (expense)
 
 
 
 
 
 
 
 
(938)
(4,057)
3,514 
Net loss
(6,810)
(3,260)
(4,644)
(8,510)
(6,421)
(2,691)
(97)
337 
(23,224)
(8,872)
(19,600)
General partner's interest for the period
(1,004)
(1,020)
(899)
(685)
(623)
(583)
(526)
(367)
3,608 
2,099 
911 
Limited partners' interest for the period
(7,814)
(4,280)
(5,543)
(9,195)
(7,044)
(3,274)
(623)
(30)
(26,832)
(10,971)
(20,511)
Net loss per limited partner unit (basic and diluted)
 
 
 
 
 
 
 
 
$ (0.88)
$ (0.41)
$ (0.98)
Cemetery
 
 
 
 
 
 
 
 
 
 
 
Merchandise
 
 
 
 
 
 
 
 
143,044 
145,922 
118,936 
Services
 
 
 
 
 
 
 
 
59,176 
54,557 
46,388 
Investment and other
 
 
 
 
 
 
 
 
59,595 
54,624 
45,247 
Total revenues
 
 
 
 
 
 
 
 
261,815 
255,103 
210,571 
Operating income
 
 
 
 
 
 
 
 
35,479 
45,829 
29,442 
As Filed
 
 
 
 
 
 
 
 
 
 
 
Total revenues
79,198 
78,200 
80,825 
67,417 
73,991 
78,174 
71,533 
64,387 
305,640 
288,085 
246,641 
Cost of goods sold
 
 
 
 
 
 
 
 
38,924 
33,652 
27,859 
Total cost and expenses
 
 
 
 
 
 
 
 
304,300 
274,225 
240,258 
Operating income
 
 
 
 
 
 
 
 
1,340 
13,860 
6,383 
Loss before income taxes
 
 
 
 
 
 
 
 
(23,136)
(6,860)
(21,336)
Income tax benefit (expense)
 
 
 
 
 
 
 
 
(1,108)
(3,913)
2,304 
Net loss
(7,111)
(3,402)
(4,848)
(8,883)
(7,796)
(3,268)
(118)
409 
(24,244)
(10,773)
(19,032)
General partner's interest for the period
88 
42 
65 
120 
106 
44 
(4)
(315)
(155)
(350)
Limited partners' interest for the period
(7,023)
(3,360)
(4,783)
(8,763)
(7,690)
(3,224)
(109)
405 
(23,929)
(10,618)
(18,682)
Net loss per limited partner unit (basic and diluted)
 
 
 
 
 
 
 
 
$ (0.79)
$ (0.40)
$ (0.89)
As Filed |
Cemetery
 
 
 
 
 
 
 
 
 
 
 
Merchandise
 
 
 
 
 
 
 
 
131,862 
132,355 
110,673 
Services
 
 
 
 
 
 
 
 
56,243 
51,827 
44,054 
Investment and other
 
 
 
 
 
 
 
 
59,765 
55,217 
46,959 
Restatement Adjustments
 
 
 
 
 
 
 
 
 
 
 
Total revenues
3,613 
3,568 
3,688 
3,076 
4,034 
4,261 
3,899 
3,510 
13,945 
15,704 
8,885 
Cost of goods sold
 
 
 
 
 
 
 
 
13,095 
13,659 
10,663 
Total cost and expenses
 
 
 
 
 
 
 
 
13,095 
13,659 
10,663 
Operating income
 
 
 
 
 
 
 
 
850 
2,045 
(1,778)
Loss before income taxes
 
 
 
 
 
 
 
 
850 
2,045 
(1,778)
Income tax benefit (expense)
 
 
 
 
 
 
 
 
170 
(144)
1,210 
Net loss
301 
142 
204 
373 
1,375 
577 
21 
(72)
1,020 
1,901 
(568)
General partner's interest for the period
(1,092)
(1,062)
(964)
(805)
(729)
(627)
(535)
(363)
3,923 
2,254 
1,261 
Limited partners' interest for the period
(791)
(920)
(760)
(432)
646 
(50)
(514)
(435)
(2,903)
(353)
(1,829)
Net loss per limited partner unit (basic and diluted)
 
 
 
 
 
 
 
 
$ (0.09)
$ (0.01)
$ (0.09)
Restatement Adjustments |
Cemetery
 
 
 
 
 
 
 
 
 
 
 
Merchandise
 
 
 
 
 
 
 
 
11,182 
13,567 
8,263 
Services
 
 
 
 
 
 
 
 
2,933 
2,730 
2,334 
Investment and other
 
 
 
 
 
 
 
 
$ (170)
$ (593)
$ (1,712)
Summary of Effect of Restatement Adjustments on Partnership's Consolidated Statements of Cash Flows (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Net loss
$ (23,224)
$ (8,872)
$ (19,600)
Changes in assets and liabilities:
 
 
 
Other assets
(2,383)
(2,798)
(563)
Deferred revenues
76,235 
52,710 
68,454 
Deferred taxes (net)
(13)
2,887 
(4,075)
Payables and other liabilities
(728)
(875)
8,145 
Net cash provided by operating activities
4,062 
19,448 
35,077 
As Filed
 
 
 
Net loss
(24,244)
(10,773)
(19,032)
Changes in assets and liabilities:
 
 
 
Other assets
(7,193)
(3,179)
(2,177)
Deferred revenues
78,676 
60,841 
72,708 
Deferred taxes (net)
157 
2,743 
(2,865)
Payables and other liabilities
2,491 
(6,580)
3,727 
Net cash provided by operating activities
4,062 
19,448 
35,077 
Restatement Adjustments
 
 
 
Net loss
1,020 
1,901 
(568)
Changes in assets and liabilities:
 
 
 
Other assets
4,810 
381 
1,614 
Deferred revenues
(2,441)
(8,131)
(4,254)
Deferred taxes (net)
(170)
144 
(1,210)
Payables and other liabilities
$ (3,219)
$ 5,705 
$ 4,418 
Summary of Effect of Restatement Adjustments on the Statement of Partners' Capital balances (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Beginning Balance
 
 
 
$ 205,610 
 
 
 
$ 102,754 
$ 205,610 
$ 102,754 
$ 130,942 
Issuance of common units
 
 
 
 
 
 
 
 
80,976 
176,271 
38,419 
Net loss
(6,810)
(3,260)
(4,644)
(8,510)
(6,421)
(2,691)
(97)
337 
(23,224)
(8,872)
(19,600)
Ending Balance
181,546 
 
 
 
205,610 
 
 
 
181,546 
205,610 
102,754 
Common Limited Partners
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
 
 
204,593 
 
 
 
101,015 
204,593 
101,015 
127,941 
Issuance of common units
 
 
 
 
 
 
 
 
80,976 
176,271 
38,419 
Net loss
 
 
 
 
 
 
 
 
(26,832)
(10,971)
(20,511)
Ending Balance
181,531 
 
 
 
204,593 
 
 
 
181,531 
204,593 
101,015 
General Partner
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
 
 
1,017 
 
 
 
1,739 
1,017 
1,739 
3,001 
Net loss
 
 
 
 
 
 
 
 
3,608 
2,099 
911 
Ending Balance
15 
 
 
 
1,017 
 
 
 
15 
1,017 
1,739 
As Filed
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
 
 
208,762 
 
 
 
107,520 
208,762 
107,520 
135,182 
Issuance of common units
 
 
 
 
 
 
 
 
 
176,558 
38,377 
Net loss
(7,111)
(3,402)
(4,848)
(8,883)
(7,796)
(3,268)
(118)
409 
(24,244)
(10,773)
(19,032)
Ending Balance
183,678 
 
 
 
208,762 
 
 
 
183,678 
208,762 
107,520 
As Filed |
Common Limited Partners
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
 
 
213,875 
 
 
 
109,657 
213,875 
109,657 
134,796 
Issuance of common units
 
 
 
 
 
 
 
 
 
176,558 
38,377 
Net loss
 
 
 
 
 
 
 
 
(23,929)
(10,618)
(18,682)
Ending Balance
193,716 
 
 
 
213,875 
 
 
 
193,716 
213,875 
109,657 
As Filed |
General Partner
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
 
 
(5,113)
 
 
 
(2,137)
(5,113)
(2,137)
386 
Net loss
 
 
 
 
 
 
 
 
(315)
(155)
(350)
Ending Balance
(10,038)
 
 
 
(5,113)
 
 
 
(10,038)
(5,113)
(2,137)
Restatement Adjustments
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
 
 
(3,152)
 
 
 
(4,766)
(3,152)
(4,766)
(4,240)
Issuance of common units
 
 
 
 
 
 
 
 
 
(287)
42 
Net loss
301 
142 
204 
373 
1,375 
577 
21 
(72)
1,020 
1,901 
(568)
Ending Balance
(2,132)
 
 
 
(3,152)
 
 
 
(2,132)
(3,152)
(4,766)
Restatement Adjustments |
Common Limited Partners
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
 
 
(9,282)
 
 
 
(8,642)
(9,282)
(8,642)
(6,855)
Issuance of common units
 
 
 
 
 
 
 
 
 
(287)
42 
Net loss
 
 
 
 
 
 
 
 
(2,903)
(353)
(1,829)
Ending Balance
(12,185)
 
 
 
(9,282)
 
 
 
(12,185)
(9,282)
(8,642)
Restatement Adjustments |
General Partner
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
 
 
6,130 
 
 
 
3,876 
6,130 
3,876 
2,615 
Net loss
 
 
 
 
 
 
 
 
3,923 
2,254 
1,261 
Ending Balance
$ 10,053 
 
 
 
$ 6,130 
 
 
 
$ 10,053 
$ 6,130 
$ 3,876 
Acquisitions - Additional Information (Detail) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2015
Cemetery Operations
Dec. 31, 2015
Funeral Homes Operating Segments
Dec. 31, 2015
Cemetery
Dec. 31, 2014
Cemetery
Dec. 31, 2013
Cemetery
Dec. 31, 2013
Positive Outcome of Litigation
Dec. 1, 2015
2015 Acquisitions
Aug. 31, 2015
2015 Acquisitions
Installment
Aug. 20, 2015
2015 Acquisitions
Aug. 6, 2015
2015 Acquisitions
Jul. 21, 2015
2015 Acquisitions
Dec. 31, 2015
2015 Acquisitions
Dec. 1, 2015
2015 Acquisitions
Funeral Homes Property
Property
Aug. 31, 2015
2015 Acquisitions
Funeral Homes Property
Property
Aug. 6, 2015
2015 Acquisitions
Funeral Homes Property
Property
Jul. 21, 2015
2015 Acquisitions
Funeral Homes Property
Property
Dec. 1, 2015
2015 Acquisitions
Cemetery property
Property
Aug. 20, 2015
2015 Acquisitions
Cemetery property
Property
Aug. 6, 2015
2015 Acquisitions
Cemetery property
Property
Dec. 4, 2014
2014 Acquisitions
Jan. 16, 2014
2014 Acquisitions
Dec. 31, 2015
2014 Acquisitions
Dec. 31, 2014
2014 Acquisitions
Dec. 4, 2014
2014 Acquisitions
Funeral Homes Property
Property
Jan. 16, 2014
2014 Acquisitions
Cemetery property
Property
Aug. 1, 2013
2013 Acquisitions
Dec. 31, 2013
2013 Acquisitions
Dec. 31, 2013
2013 Acquisitions
Funeral Homes Operating Segments
Feb. 19, 2013
2013 Acquisitions
Funeral Homes Property
Feb. 19, 2013
2013 Acquisitions
Funeral Homes Property
Installment
Property
Aug. 1, 2013
2013 Acquisitions
Cemetery property
Property
May 28, 2014
Second Quarter 2014 Acquisition
Dec. 31, 2014
Second Quarter 2014 Acquisition
May 28, 2014
Second Quarter 2014 Acquisition
Dec. 31, 2014
Second Quarter 2014 Acquisition
Funeral Homes Operating Segments
Dec. 31, 2014
Second Quarter 2014 Acquisition
Cemetery
May 28, 2014
Second Quarter 2014 Acquisition
Minimum
May 28, 2014
Second Quarter 2014 Acquisition
Maximum
May 28, 2014
Second Quarter 2014 Acquisition
Cemetery property
May 28, 2014
Second Quarter 2014 Acquisition
Cemetery property
Property
Jun. 10, 2014
2014 Acquisition
Dec. 31, 2014
2014 Acquisition
Funeral Homes Operating Segments
Jun. 10, 2014
2014 Acquisition
Funeral Homes Property
Property
Jun. 10, 2014
2014 Acquisition
Cemetery property
Property
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of properties acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13 
 
 
12 
Consideration paid
 
 
 
 
 
 
 
 
 
$ 5,700,000 
$ 5,000,000 
$ 1,500,000 
$ 5,700,000 
$ 900,000 
$ 18,800,000 
 
 
 
 
 
 
 
$ 2,400,000 
$ 200,000 
 
$ 2,581,000 
 
 
$ 5,000,000 
$ 14,100,000 
 
$ 9,100,000 
 
 
 
$ 53,800,000 
 
 
 
 
 
 
 
$ 53,800,000 
 
 
 
Deferred cash consideration
 
 
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
876,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of annual installments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
69,851,000 
58,836,000 
48,737,000 
1,100,000 
9,900,000 
25,320,000 
24,186,000 
18,122,000 
 
 
 
 
 
 
11,015,000 
 
 
 
 
 
 
 
 
 
 
1,626,000 
 
 
 
6,345,000 
 
 
 
 
 
8,473,000 
 
 
 
 
 
 
 
 
 
 
 
Goodwill acquired
11,015,000 
10,099,000 
 
 
 
1,134,000 
6,064,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6,300,000 
 
 
 
 
 
 
2,400,000 
6,100,000 
 
 
 
 
 
1,600,000 
 
 
Finite lived intangible asset, amortization period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
60 years 
 
 
 
 
 
Consideration for lease and management agreements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
53,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate fixed rent payment to landlord
25,611,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
36,000,000 
 
 
 
 
 
 
 
 
 
 
Fixed rent for lease, years deferred
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6 years 
11 years 
 
 
 
 
 
 
Percentage of sales payment to landlord from the sale of undeveloped land
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
51.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Present value of fixed rent liability
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8,368,000 
 
 
 
 
 
 
 
 
 
 
Gross fixed rent liability
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
36,000,000 
 
 
 
 
 
 
 
 
 
 
Effective annual discount rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.30% 
 
 
 
 
 
 
 
 
 
 
 
 
Consideration paid - units
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,592,000 
 
3,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Installment payment amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of installment payments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Installment payment start date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Feb. 19, 2014 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consideration paid - number of common units
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
159,635 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-Term Debt, face amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-Term Debt, maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Feb. 19, 2014 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of businesses acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property Acquired, revenue contributed
6,600,000 
6,000,000 
3,900,000 
 
 
 
 
 
 
 
 
 
 
 
2,100,000 
 
 
 
 
 
 
 
 
 
43,900,000 
19,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property Acquired, operating profit (loss) contributed
700,000 
700,000 
100,000 
 
 
 
 
 
 
 
 
 
 
 
200,000 
 
 
 
 
 
 
 
 
 
5,400,000 
1,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Settlement agreement, funds placed into trust
 
 
18,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Litigation settlement, cash proceeds from settlement
 
 
 
 
 
 
 
 
11,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Litigation settlement, payment for the properties' perpetual care and merchandise trusts
 
 
 
 
 
 
 
 
6,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Litigation settlement, Gain on settlement agreement
 
$ 888,000 
$ 12,261,000 
 
 
 
 
 
$ 12,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Final Values Assigned to Assets Acquired and Liabilities Assumed Based on Their Estimated Fair Values at the Date of Acquisitions (Detail) (USD $)
In Thousands, unless otherwise specified
0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 1, 2015
2015 Acquisitions
Aug. 31, 2015
2015 Acquisitions
Aug. 20, 2015
2015 Acquisitions
Aug. 6, 2015
2015 Acquisitions
Jul. 21, 2015
2015 Acquisitions
Dec. 31, 2015
2015 Acquisitions
Dec. 31, 2015
2015 Acquisitions
Perpetual care trusts, restricted, at fair value
Merchandise Trusts
Dec. 31, 2015
2015 Acquisitions
Perpetual care trusts, restricted, at fair value
Perpetual care trusts
Dec. 31, 2015
2015 Acquisitions
Perpetual care trust corpus
Perpetual care trusts
Dec. 31, 2015
2015 Acquisitions
Cemetery property
Dec. 31, 2015
2015 Acquisitions
Other property and equipment
Dec. 4, 2014
2014 Acquisitions
Jan. 16, 2014
2014 Acquisitions
Dec. 31, 2014
2014 Acquisitions
Dec. 31, 2014
2014 Acquisitions
Non-compete agreements
Dec. 31, 2014
2014 Acquisitions
Perpetual care trusts, restricted, at fair value
Merchandise Trusts
Dec. 31, 2014
2014 Acquisitions
Perpetual care trusts, restricted, at fair value
Perpetual care trusts
Dec. 31, 2014
2014 Acquisitions
Perpetual care trust corpus
Dec. 31, 2014
2014 Acquisitions
Cemetery property
Dec. 31, 2014
2014 Acquisitions
Other property and equipment
Dec. 31, 2014
Second Quarter 2014 Acquisition
May 28, 2014
Second Quarter 2014 Acquisition
Dec. 31, 2014
Second Quarter 2014 Acquisition
Perpetual care trusts, restricted, at fair value
Merchandise Trusts
Dec. 31, 2014
Second Quarter 2014 Acquisition
Perpetual care trusts, restricted, at fair value
Perpetual care trusts
Dec. 31, 2014
Second Quarter 2014 Acquisition
Perpetual care trust corpus
Dec. 31, 2014
Second Quarter 2014 Acquisition
Cemetery property
Dec. 31, 2014
Second Quarter 2014 Acquisition
Other property and equipment
Aug. 1, 2013
2013 Acquisitions
Dec. 31, 2013
2013 Acquisitions
Dec. 31, 2013
2013 Acquisitions
Non-compete agreements
Dec. 31, 2013
2013 Acquisitions
Perpetual care trusts, restricted, at fair value
Merchandise Trusts
Dec. 31, 2013
2013 Acquisitions
Perpetual care trusts, restricted, at fair value
Perpetual care trusts
Dec. 31, 2013
2013 Acquisitions
Perpetual care trust corpus
Dec. 31, 2013
2013 Acquisitions
Cemetery property
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts receivable
 
 
 
 
 
 
 
 
$ 2,761 
 
 
 
 
 
 
 
$ 104 
 
 
 
 
 
 
$ 6,188 
$ 1,610 
 
 
 
 
 
 
$ 1,531 
 
 
 
 
 
Property and equipment
 
 
 
 
 
 
 
 
 
 
 
 
5,249 
7,710 
 
 
 
 
 
 
 
470 
193 
 
 
 
 
 
25,799 
16,006 
 
9,362 
 
 
 
 
3,900 
Inventory
 
 
 
 
 
 
 
 
53 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of assets acquired
 
 
 
 
 
 
 
 
 
15,075 
4,134 
 
 
 
 
 
 
 
2,685 
691 
 
 
 
 
 
31,534 
16,913 
 
 
 
 
 
 
10,314 
5,888 
 
 
Intangible assets
 
 
 
 
 
 
 
 
406 
 
 
 
 
 
 
 
 
520 
 
 
 
 
 
1,170 
59,758 
 
 
 
 
 
 
 
1,927 
 
 
 
 
Other assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
22 
 
 
 
 
 
 
178 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred tax assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
87 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
 
 
 
 
 
 
 
35,388 
 
 
 
 
 
 
 
4,772 
 
 
 
 
 
 
97,788 
61,368 
 
 
 
 
 
 
32,922 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of liabilities assumed
 
 
 
 
 
 
 
 
 
 
 
4,134 
 
 
 
 
 
 
 
 
691 
 
 
 
 
 
 
16,913 
 
 
 
 
 
 
 
5,888 
 
Deferred revenues
 
 
 
 
 
 
 
 
21,032 
 
 
 
 
 
 
 
2,053 
 
 
 
 
 
 
33,475 
 
 
 
 
 
 
 
8,274 
 
 
 
 
 
Deferred tax liability
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
641 
 
 
 
 
 
 
2,010 
 
 
 
 
 
 
 
701 
 
 
 
 
 
Other liabilities
 
 
 
 
 
 
 
 
21 
 
 
 
 
 
 
 
20 
 
 
 
 
 
 
63 
 
 
 
 
 
 
 
258 
 
 
 
 
 
Total liabilities
 
 
 
 
 
 
 
 
25,187 
 
 
 
 
 
 
 
3,405 
 
 
 
 
 
 
52,461 
8,368 
 
 
 
 
 
 
15,121 
 
 
 
 
 
Fair value of net assets acquired
 
 
 
 
 
 
 
 
10,201 
 
 
 
 
 
 
 
1,367 
 
 
 
 
 
 
45,327 
53,000 
 
 
 
 
 
 
17,801 
 
 
 
 
 
Consideration paid
 
 
 
5,700 
5,000 
1,500 
5,700 
900 
18,800 
 
 
 
 
 
2,400 
200 
2,581 
 
 
 
 
 
 
53,800 
 
 
 
 
 
 
5,000 
14,100 
 
 
 
 
 
Consideration paid - units
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,592 
 
 
 
 
 
Deferred cash consideration
 
 
 
 
1,000 
 
 
 
876 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of Notes Payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,000 
 
 
 
 
 
Fair value of debt assumed for non-compete agreements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
924 
 
 
 
 
 
Total consideration paid
 
 
 
 
 
 
 
 
19,676 
 
 
 
 
 
 
 
2,581 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
21,616 
 
 
 
 
 
Gain on bargain purchase
 
 
 
 
 
 
 
 
1,540 
 
 
 
 
 
 
 
412 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,530 
 
 
 
 
 
Goodwill from purchase
$ 69,851 
$ 58,836 
$ 48,737 
 
 
 
 
 
$ 11,015 
 
 
 
 
 
 
 
$ 1,626 
 
 
 
 
 
 
$ 8,473 
 
 
 
 
 
 
 
$ 6,345 
 
 
 
 
 
Fixed Rent for Cemeteries (Detail) (2014 Acquisitions, USD $)
0 Months Ended
May 28, 2014
Lease Years 1-5
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
$ 0 
Lease Years 6-20
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
1,000,000 
Lease Years 21-25
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
1,200,000 
Lease Years 26- 35
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
1,500,000 
Lease Years 36-60
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
$ 0 
Minimum |
Lease Years 1-5
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
1 year 
Minimum |
Lease Years 6-20
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
6 years 
Minimum |
Lease Years 21-25
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
21 years 
Minimum |
Lease Years 26- 35
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
26 years 
Minimum |
Lease Years 36-60
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
36 years 
Maximum |
Lease Years 1-5
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
5 years 
Maximum |
Lease Years 6-20
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
20 years 
Maximum |
Lease Years 21-25
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
25 years 
Maximum |
Lease Years 26- 35
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
35 years 
Maximum |
Lease Years 36-60
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Lease years
60 years 
Asset and Liabilities Recognized (Detail) (Second Quarter 2014 Acquisition, USD $)
Dec. 31, 2014
May 28, 2014
Second Quarter 2014 Acquisition
 
 
Business Acquisition [Line Items]
 
 
Accounts receivable
$ 6,188,000 
$ 1,610,000 
Intangible asset
1,170,000 
59,758,000 
Total assets
97,788,000 
61,368,000 
Obligation for lease and management agreements
 
36,000,000 
Discount on obligation for lease and management agreements
 
(27,632,000)
Obligation for lease and management agreements, net
 
8,368,000 
Total liabilities
52,461,000 
8,368,000 
Total net assets
$ 45,327,000 
$ 53,000,000 
Consolidated Pro Forma Information (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
 
 
Revenue
$ 324,657 
$ 325,450 
Net loss
$ (24,320)
$ (6,287)
Net loss per limited partner unit (basic and diluted)
$ (0.92)
$ (0.29)
Long-Term Accounts Receivable Net (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Customer receivables
$ 207,645 
$ 194,537 
Unearned finance income
(20,078)
(20,360)
Allowance for contract cancellations
(23,985)
(22,138)
Accounts receivable, net of allowance
163,582 
152,039 
Less: current portion - net of allowance
68,415 
62,503 
Long-term portion - net of allowance
95,167 
89,536 
Accounts receivable, net of allowance
$ 163,582 
$ 152,039 
Activity in Allowance for Contract Cancellations (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Valuation and Qualifying Accounts Disclosure [Line Items]
 
 
 
Balance - end of period
$ 23,985 
$ 22,138 
 
Contract Cancellations
 
 
 
Valuation and Qualifying Accounts Disclosure [Line Items]
 
 
 
Balance - beginning of period
22,138 
20,275 
17,933 
Provision for cancellations
25,307 
20,870 
20,069 
Charge-offs - net
(23,460)
(19,007)
(17,727)
Balance - end of period
$ 23,985 
$ 22,138 
$ 20,275 
Cemetery Property (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Property, Plant and Equipment [Line Items]
 
 
Cemetery property
$ 334,457 
$ 332,659 
Cemetery land
 
 
Property, Plant and Equipment [Line Items]
 
 
Cemetery property
253,955 
252,002 
Mausoleum crypts and lawn crypts
 
 
Property, Plant and Equipment [Line Items]
 
 
Cemetery property
$ 80,502 
$ 80,657 
Major Classes of Property and Equipment (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Property, Plant and Equipment [Line Items]
 
 
Property, Plant and Equipment, Gross, Total
$ 183,177 
$ 167,496 
Less: accumulated depreciation
(67,050)
(57,077)
Property and equipment, net of accumulated depreciation
116,127 
110,419 
Building and improvements
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, Plant and Equipment, Gross, Total
117,034 
108,178 
Furniture and equipment
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, Plant and Equipment, Gross, Total
54,346 
49,290 
Funeral home land
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, Plant and Equipment, Gross, Total
$ 11,797 
$ 10,028 
Property and Equipment - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Property, Plant and Equipment [Line Items]
 
 
 
Depreciation expense
$ 10.6 
$ 8.9 
$ 7.5 
Merchandise Trusts - Additional Information (Detail) (Variable Interest Entity, Primary Beneficiary, Merchandise Trusts, USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
 
 
Trust assets, fair value
$ 464,676,000 
$ 484,820,000 
Purchases of securities available for sale included in trust investments
554,700,000 
430,500,000 
Sales of securities available for sale included in trust investments
522,200,000 
440,800,000 
Trust assets, cost
489,361,000 
482,536,000 
Other than temporary impairments loss
54,527,000 
 
Other Than Temporarily Impaired Securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Trust assets, fair value
142,300,000 
500,000 
Trust assets, cost
196,800,000 
900,000 
Other than temporary impairments loss
54,500,000 
400,000 
West Virginia Trust Receivable
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Trust assets, fair value
8,175,000 
8,319,000 
Trust assets, cost
$ 8,175,000 
$ 8,319,000 
Reconciliation of Merchandise Trust Activities (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
 
 
Balance - end of period
$ 464,676 
$ 484,820 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Balance - beginning of period
484,820 
431,556 
Contributions
80,693 
87,271 
Distributions
(50,987)
(57,788)
Interest and dividends
21,859 
21,827 
Capital gain distributions
2,413 
1,242 
Realized gains and losses
13,941 
14,857 
Other than temporary impairment
(54,527)
 
Taxes
(3,271)
(2,543)
Fees
(3,296)
(2,890)
Unrealized change in fair value
(26,969)
(8,712)
Balance - end of period
$ 464,676 
$ 484,820 
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
Dec. 31, 2015
Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
$ 489,361 
$ 482,536 
Gross Unrealized Gains
1,307 
17,627 
Gross Unrealized Losses
(25,992)
(15,343)
Fair Value
464,676 
484,820 
Short-term investments |
Level 1
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
35,150 
52,521 
Fair Value
35,150 
52,521 
Fixed maturities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
19,170 
 
Gross Unrealized Gains
25 
 
Gross Unrealized Losses
(556)
 
Fair Value
18,639 
 
Fixed maturities |
Level 1
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
 
16,827 
Gross Unrealized Gains
 
23 
Gross Unrealized Losses
 
(466)
Fair Value
 
16,384 
Fixed maturities |
U.S. State and local government agency |
Level 2
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
98 
270 
Gross Unrealized Gains
 
Gross Unrealized Losses
(3)
(1)
Fair Value
101 
269 
Fixed maturities |
Corporate debt securities |
Level 2
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
11,922 
9,400 
Gross Unrealized Gains
23 
Gross Unrealized Losses
(546)
(447)
Fair Value
11,384 
8,976 
Fixed maturities |
Other debt securities |
Level 2
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
7,150 
7,157 
Gross Unrealized Gains
11 
 
Gross Unrealized Losses
(7)
(18)
Fair Value
7,154 
7,139 
Mutual funds-debt securities |
Level 1
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
232,096 
150,477 
Gross Unrealized Gains
86 
869 
Gross Unrealized Losses
(10,713)
(8,666)
Fair Value
221,469 
142,680 
Mutual funds-equity securities |
Level 1
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
139,341 
167,353 
Gross Unrealized Gains
69 
12,568 
Gross Unrealized Losses
(12,249)
(463)
Fair Value
127,161 
179,458 
Equity securities |
Level 1
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
49,563 
 
Gross Unrealized Gains
1,127 
 
Gross Unrealized Losses
(2,474)
 
Fair Value
48,216 
 
Equity securities |
Level 2
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
 
81,639 
Gross Unrealized Gains
 
4,167 
Gross Unrealized Losses
 
(5,507)
Fair Value
 
80,299 
Other invested assets
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
 
5,400 
Gross Unrealized Losses
 
(241)
Fair Value
 
5,159 
Other invested assets |
Level 2
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
1,681 
 
Fair Value
1,681 
 
Total managed investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
477,001 
474,217 
Gross Unrealized Gains
1,307 
17,627 
Gross Unrealized Losses
(25,992)
(15,343)
Fair Value
452,316 
476,501 
West Virginia Trust Receivable
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
8,175 
8,319 
Fair Value
8,175 
8,319 
Assets acquired via acquisition
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
4,185 
 
Fair Value
$ 4,185 
 
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
Dec. 31, 2015
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
$ 3,520 
1 year through 5 years
11,809 
6 years through 10 years
3,310 
More than 10 years
U.S. State and local government agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
1 year through 5 years
23 
6 years through 10 years
78 
More than 10 years
Corporate debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
1 year through 5 years
8,152 
6 years through 10 years
3,232 
More than 10 years
Other debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
3,520 
1 year through 5 years
3,634 
More than 10 years
$ 0 
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
Dec. 31, 2015
Dec. 31, 2014
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
$ 211,854 
$ 89,200 
Less than 12 months Unrealized Losses
20,625 
6,494 
12 Months or more Fair Value
44,342 
110,694 
12 Months or more Unrealized Losses
5,367 
8,849 
Total Fair Value
256,196 
199,894 
Total Unrealized Losses
25,992 
15,343 
Other debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
2,883 
 
Less than 12 months Unrealized Losses
 
Total Fair Value
2,883 
 
Total Unrealized Losses
 
Fixed maturities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
10,130 
8,418 
Less than 12 months Unrealized Losses
418 
351 
12 Months or more Fair Value
1,546 
6,275 
12 Months or more Unrealized Losses
138 
115 
Total Fair Value
11,676 
14,693 
Total Unrealized Losses
556 
466 
Fixed maturities |
U.S. State and local government agency
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
 
143 
Less than 12 months Unrealized Losses
 
12 Months or more Fair Value
33 
 
12 Months or more Unrealized Losses
 
Total Fair Value
33 
143 
Total Unrealized Losses
Fixed maturities |
Corporate debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
7,247 
5,905 
Less than 12 months Unrealized Losses
411 
342 
12 Months or more Fair Value
1,513 
1,506 
12 Months or more Unrealized Losses
135 
105 
Total Fair Value
8,760 
7,411 
Total Unrealized Losses
546 
447 
Fixed maturities |
Other debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
 
2,370 
Less than 12 months Unrealized Losses
 
12 Months or more Fair Value
 
4,769 
12 Months or more Unrealized Losses
 
10 
Total Fair Value
 
7,139 
Total Unrealized Losses
 
18 
Mutual funds-debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
121,777 
32,072 
Less than 12 months Unrealized Losses
6,938 
1,039 
12 Months or more Fair Value
36,682 
95,629 
12 Months or more Unrealized Losses
3,775 
7,627 
Total Fair Value
158,459 
127,701 
Total Unrealized Losses
10,713 
8,666 
Mutual funds-equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
58,467 
4,147 
Less than 12 months Unrealized Losses
10,994 
463 
12 Months or more Fair Value
5,465 
 
12 Months or more Unrealized Losses
1,255 
 
Total Fair Value
63,932 
4,147 
Total Unrealized Losses
12,249 
463 
Equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
21,480 
44,563 
Less than 12 months Unrealized Losses
2,275 
4,641 
12 Months or more Fair Value
649 
3,909 
12 Months or more Unrealized Losses
199 
866 
Total Fair Value
22,129 
48,472 
Total Unrealized Losses
2,474 
5,507 
Other invested assets
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
12 Months or more Fair Value
 
4,881 
12 Months or more Unrealized Losses
 
241 
Total Fair Value
 
4,881 
Total Unrealized Losses
 
$ 241 
Reconciliation of Perpetual Care Trust Activities (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair Value
$ 307,804 
$ 345,105 
Variable Interest Entity, Primary Beneficiary |
Perpetual care trusts
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair Value
345,105 
311,771 
Contributions
15,919 
34,332 
Distributions
(15,003)
(14,308)
Interest and dividends
18,019 
15,044 
Capital gain distributions
1,952 
125 
Realized gains and losses
12,323 
(164)
Other than temporary impairment
(29,047)
 
Taxes
(631)
(654)
Fees
(2,163)
(2,054)
Unrealized change in fair value
(38,670)
1,013 
Fair Value
$ 307,804 
$ 345,105 
Perpetual Care Trusts - Additional Information (Detail) (Variable Interest Entity, Primary Beneficiary, Perpetual care trusts, USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
 
 
Purchases of securities available for sale included in trust investments
$ 359,300,000 
$ 157,500,000 
Sales of securities available for sale included in trust investments
349,000,000 
165,700,000 
Trust assets, cost
315,915,000 
314,546,000 
Trust assets, fair value
307,804,000 
345,105,000 
Other than temporary impairments loss
29,047,000 
 
Other Than Temporarily Impaired Securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Trust assets, cost
107,700,000 
1,400,000 
Trust assets, fair value
78,700,000 
800,000 
Other than temporary impairments loss
$ 29,000,000 
$ 600,000 
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
Dec. 31, 2015
Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
$ 315,915 
$ 314,546 
Gross Unrealized Gains
1,797 
38,207 
Gross Unrealized Losses
(9,908)
(7,648)
Fair Value
307,804 
345,105 
Short-term investments |
Level 1
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
36,618 
26,644 
Fair Value
36,618 
26,644 
Fixed maturities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
22,999 
24,824 
Gross Unrealized Gains
71 
121 
Gross Unrealized Losses
(846)
(913)
Fair Value
22,224 
24,032 
Fixed maturities |
U.S. State and local government agency |
Level 2
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
126 
78 
Gross Unrealized Gains
14 
Fair Value
140 
79 
Fixed maturities |
Corporate debt securities |
Level 2
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
22,837 
24,275 
Gross Unrealized Gains
57 
104 
Gross Unrealized Losses
(845)
(913)
Fair Value
22,049 
23,466 
Fixed maturities |
Other debt securities |
Level 2
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
36 
371 
Gross Unrealized Losses
(1)
 
Fair Value
35 
371 
Fixed maturities |
U.S. governmental securities |
Level 1
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
 
100 
Gross Unrealized Gains
 
16 
Fair Value
 
116 
Mutual funds-debt securities |
Level 1
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
184,866 
128,735 
Gross Unrealized Gains
35 
379 
Gross Unrealized Losses
(7,180)
(5,220)
Fair Value
177,721 
123,894 
Mutual funds-equity securities |
Level 1
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
68,079 
103,701 
Gross Unrealized Gains
1,054 
23,003 
Gross Unrealized Losses
(1,713)
(1,268)
Fair Value
67,420 
125,436 
Equity securities |
Level 1
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
2,319 
30,617 
Gross Unrealized Gains
636 
14,704 
Gross Unrealized Losses
(7)
(247)
Fair Value
2,948 
45,074 
Other invested assets |
Level 2
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
473 
25 
Gross Unrealized Gains
 
Gross Unrealized Losses
(162)
 
Fair Value
312 
25 
Total managed investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
315,354 
 
Gross Unrealized Gains
1,797 
 
Gross Unrealized Losses
(9,908)
 
Fair Value
307,243 
 
Assets acquired via acquisition
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
561 
 
Fair Value
$ 561 
 
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
Dec. 31, 2015
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
$ 237 
1 year through 5 years
16,250 
6 years through 10 years
5,678 
More than 10 years
59 
U.S. State and local government agency
 
Investments Classified by Contractual Maturity Date [Line Items]
 
1 year through 5 years
112 
6 years through 10 years
28 
Corporate debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
202 
1 year through 5 years
16,138 
6 years through 10 years
5,650 
More than 10 years
59 
Other debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
$ 35 
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
Dec. 31, 2015
Dec. 31, 2014
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
$ 110,734 
$ 61,680 
Less than 12 months Unrealized Losses
6,168 
3,079 
12 Months or more Fair Value
61,151 
89,953 
12 Months or more Unrealized Losses
3,740 
4,569 
Total Fair Value
171,885 
151,633 
Total Unrealized Losses
9,908 
7,648 
Other debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
35 
 
Less than 12 months Unrealized Losses
 
Total Fair Value
35 
 
Total Unrealized Losses
 
Fixed maturities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
12,517 
14,434 
Less than 12 months Unrealized Losses
536 
798 
12 Months or more Fair Value
4,617 
2,519 
12 Months or more Unrealized Losses
310 
115 
Total Fair Value
17,134 
16,953 
Total Unrealized Losses
846 
913 
Fixed maturities |
Corporate debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
12,482 
14,434 
Less than 12 months Unrealized Losses
535 
798 
12 Months or more Fair Value
4,505 
2,519 
12 Months or more Unrealized Losses
310 
115 
Total Fair Value
16,987 
16,953 
Total Unrealized Losses
845 
913 
Mutual funds-debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
81,215 
30,345 
Less than 12 months Unrealized Losses
4,263 
768 
12 Months or more Fair Value
50,774 
86,814 
12 Months or more Unrealized Losses
2,917 
4,452 
Total Fair Value
131,989 
117,159 
Total Unrealized Losses
7,180 
5,220 
Mutual funds-equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
16,514 
13,035 
Less than 12 months Unrealized Losses
1,363 
1,268 
12 Months or more Fair Value
4,308 
 
12 Months or more Unrealized Losses
350 
 
Total Fair Value
20,822 
13,035 
Total Unrealized Losses
1,713 
1,268 
Equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
488 
3,866 
Less than 12 months Unrealized Losses
245 
12 Months or more Fair Value
1,137 
620 
12 Months or more Unrealized Losses
Total Fair Value
1,625 
4,486 
Total Unrealized Losses
247 
Other invested assets
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
12 Months or more Fair Value
315 
 
12 Months or more Unrealized Losses
162 
 
Total Fair Value
315 
 
Total Unrealized Losses
162 
 
U.S. State and local government agency
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
12 Months or more Fair Value
112 
 
Total Fair Value
$ 112 
 
Goodwill and Intangible Assets - Additional Information (Detail) (USD $)
12 Months Ended
Dec. 31, 2015
Unit
Dec. 31, 2014
Dec. 31, 2013
Goodwill [Line Items]
 
 
 
Goodwill
$ 69,851,000 
$ 58,836,000 
$ 48,737,000 
Number of reporting units
 
 
Goodwill impairment
Amortization expense related to intangible assets
$ 2,200,000 
$ 2,100,000 
$ 2,000,000 
Goodwill by Reportable Segment (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Goodwill [Line Items]
 
 
Goodwill, Beginning Balance
$ 58,836 
$ 48,737 
Goodwill acquired from acquisitions
11,015 
10,099 
Goodwill, Ending Balance
69,851 
58,836 
Cemetery
 
 
Goodwill [Line Items]
 
 
Goodwill, Beginning Balance
24,186 
18,122 
Goodwill acquired from acquisitions
1,134 
6,064 
Goodwill, Ending Balance
25,320 
24,186 
Funeral Home
 
 
Goodwill [Line Items]
 
 
Goodwill, Beginning Balance
34,650 
30,615 
Goodwill acquired from acquisitions
9,881 
4,035 
Goodwill, Ending Balance
$ 44,531 
$ 34,650 
Components of Intangible Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
$ 73,092 
$ 72,686 
Accumulated Amortization
(5,883)
(3,696)
Net Intangible Asset
67,209 
68,990 
Lease and management agreements
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
59,758 
59,758 
Accumulated Amortization
(1,577)
(581)
Net Intangible Asset
58,181 
59,177 
Underlying contract value
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
6,239 
6,239 
Accumulated Amortization
(1,014)
(858)
Net Intangible Asset
5,225 
5,381 
Non-compete agreements
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
5,656 
5,250 
Accumulated Amortization
(3,112)
(2,126)
Net Intangible Asset
2,544 
3,124 
Other intangible assets
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
1,439 
1,439 
Accumulated Amortization
(180)
(131)
Net Intangible Asset
$ 1,259 
$ 1,308 
Outstanding Debt (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Debt Instrument [Line Items]
 
 
Less deferred financing costs, net of accumulated amortization
$ (7,499)
$ (9,089)
Long-Term Debt
318,839 
278,540 
Less current maturities
(2,440)
(2,251)
Long-term portion
316,399 
276,289 
Senior Notes |
7.875% notes, due 2021
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
172,186 
171,783 
Line of Credit |
Working Capital Credit Facility, due December 2019
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
105,000 
85,902 
Line of Credit |
Acquisition Credit Facility, due December 2019
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
44,500 
25,000 
Notes Payable, other Payables |
Acquisitions Debt
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
687 
861 
Notes Payable, other Payables |
Acquisition non-competes
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
1,629 
2,451 
Insurance and vehicle financing
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt
$ 2,336 
$ 1,632 
Outstanding Debt (Parenthetical) (Detail) (Senior Notes, 7.875% notes, due 2021)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Senior Notes |
7.875% notes, due 2021
 
 
Debt Instrument [Line Items]
 
 
Long-Term Debt, interest rate
7.875% 
7.875% 
Long-Term Debt, maturity date
2021-06 
2021-06 
Long Term Debt - Additional Information (Detail) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended
Dec. 31, 2015
Dec. 31, 2015
7.875% senior notes, due 2021
Dec. 31, 2015
Debt Instrument, Redemption, 2016
7.875% senior notes, due 2021
Dec. 31, 2015
Credit Agreement
Dec. 31, 2015
Credit Agreement
Line of Credit
Dec. 31, 2015
Credit Agreement
If less than 50% of the borrowing base is utilized
Dec. 31, 2015
Credit Agreement
If 50% or more of the borrowing base is utilized
Dec. 31, 2015
Credit Agreement
Federal funds rate
Dec. 31, 2015
Credit Agreement
one-month LIBOR
Dec. 31, 2015
Credit Agreement
Standby letters of credit
Dec. 31, 2014
Credit Agreement
Standby letters of credit
Dec. 31, 2015
Credit Agreement
Minimum
Dec. 31, 2015
Credit Agreement
Minimum
Adjusted LIBOR
Dec. 31, 2015
Credit Agreement
Minimum
Base Rate
Dec. 31, 2015
Credit Agreement
Maximum
Adjusted LIBOR
Dec. 31, 2015
Credit Agreement
Maximum
Base Rate
Dec. 31, 2015
7.875% notes, due 2021
Senior Notes
Dec. 31, 2014
7.875% notes, due 2021
Senior Notes
May 28, 2013
7.875% notes, due 2021
Senior Notes
May 31, 2013
10.25% Senior Notes, due 2017
May 28, 2013
10.25% Senior Notes, due 2017
May 28, 2013
10.25% Senior Notes, due 2017
Dec. 31, 2015
10.25% Senior Notes, due 2017
Senior Notes
May 28, 2013
10.25% Senior Notes, due 2017
Senior Notes
Debt Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility , maximum borrowing
 
 
 
$ 180,000,000 
$ 139,000,000 
 
 
 
 
$ 10,000,000 
$ 180,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility, additional borrowing capacity
 
 
 
70,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long term debt, maturity date
 
 
 
Dec. 19, 2019 
 
 
 
 
 
Dec. 19, 2019 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum percentage of eligible receivables to borrow working capital advance
 
 
 
 
85.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit outstanding amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility, basis spread on variable rate
 
 
 
 
 
 
 
0.50% 
1.00% 
 
 
 
2.25% 
1.25% 
4.00% 
3.00% 
 
 
 
 
 
 
 
 
Unused borrowings commitment fee description
 
 
 
The Partnership is also required to pay a fee on the unused portion of the Credit Facility at a rate between 0.375% and 0.8% per annum 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual commitment fee percentage on unused borrowings
 
 
 
 
 
0.375% 
0.80% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average interest rate on outstanding borrowings
 
 
 
3.80% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt covenant, Consolidated EBITDA requirement for recently completed four fiscal quarters
 
 
 
80,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt covenant, Percentage of consolidated EBITDA
 
 
 
80.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum consolidated leverage ratio
 
 
 
400.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated coverage ratio
 
 
 
 
 
 
 
 
 
 
 
250.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility, Consolidated Leverage Ratio
323.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility, Consolidated Debt Service Coverage Ratio
462.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-Term Debt, principal amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
175,000,000 
 
 
 
150,000,000 
 
Debt premium percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.875% 
 
 
 
 
 
Long-Term Debt, interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.875% 
7.875% 
 
 
 
 
 
10.25% 
Long-Term Debt, Issued price per $100
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
97.832% 
 
 
 
Net proceeds from issuance of senior notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
171,200,000 
 
 
 
 
Long-Term Debt, discount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,800,000 
 
 
Long-Term Debt, debt issuance costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 4,600,000 
 
 
 
 
Senior Notes, redemption percent
 
35.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes, redemption percentage of principal amount
 
107.875% 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes, remaining redemption percent
 
65.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes, closing redemption period
 
180 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase price as percentage of principal plus accrued and unpaid interest, Upon occurrence of change of control
 
101.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Redemption Prices Expressed as Percentages of Principal Amount (Detail) (7.875% senior notes, due 2021)
Dec. 31, 2015
7.875% senior notes, due 2021
 
Debt Instrument [Line Items]
 
2016
105.906% 
2017
103.938% 
2018
101.969% 
2019 and thereafter
100.00% 
Income tax expense (benefit) (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Current provision:
 
 
 
State
$ 723 
$ 869 
$ 685 
Federal
Foreign
229 
302 
(125)
Total
952 
1,171 
560 
Deferred provision:
 
 
 
State
(368)
351 
187 
Federal
230 
2,535 
(4,261)
Foreign
124 
 
 
Total
(14)
2,886 
(4,074)
Total income tax expense (benefit)
$ 938 
$ 4,057 
$ (3,514)
Summary of Reconciliation of Federal Statutory Tax Rate to Partnership's Effective Tax Rate (Detail)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Reconciliation of Provision of Income Taxes [Line Items]
 
 
 
Computed tax provision (benefit) at the applicable statutory tax rate
35.00% 
35.00% 
35.00% 
State and local taxes net of federal income tax benefit
(1.60%)
(12.20%)
(1.50%)
Tax exempt (income) loss
(4.50%)
(21.40%)
(6.70%)
Change in valuation allowance
(65.60%)
(223.30%)
(37.70%)
Partnership earnings not subject to tax
32.40% 
137.30% 
11.00% 
Permanent differences
0.20% 
1.30% 
14.40% 
Other
(0.10%)
(1.00%)
0.70% 
Income tax expense (benefit)
(4.20%)
(84.30%)
15.20% 
Significant Components of Deferred Tax Assets and Liabilities (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Deferred tax assets:
 
 
Prepaid expenses
$ 7,626 
$ 5,373 
State net operating loss
14,260 
13,015 
Federal net operating loss
92,688 
79,201 
Other
67 
(831)
Valuation allowance
(76,468)
(58,749)
Total deferred tax assets
38,173 
38,009 
Deferred tax liabilities:
 
 
Property, plant and equipment
9,290 
8,058 
Total deferred tax liabilities
55,739 
55,620 
Net deferred tax liabilities
17,566 
17,611 
Cemetery property
 
 
Deferred tax liabilities:
 
 
Deferred revenue
9,208 
8,939 
Future Revenue and Accounts Receivable
 
 
Deferred tax liabilities:
 
 
Deferred revenue
$ 37,241 
$ 38,623 
Deferred Tax Assets and Liabilities (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Schedule of Deferred Income Tax Assets and Liabilities [Line Items]
 
 
Deferred tax assets
$ 181 
$ 181 
Noncurrent assets
181 
181 
Deferred tax assets
37,992 
37,828 
Deferred tax liabilities
55,739 
55,620 
Noncurrent liabilities
17,747 
17,792 
Net deferred tax liabilities
$ 17,566 
$ 17,611 
Income Taxes - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Income Taxes [Line Items]
 
Alternative minimum tax credit carry forwards
$ 0.1 
State and Local Jurisdiction
 
Income Taxes [Line Items]
 
Net operating loss carryforwards
321.8 
Internal Revenue Service (IRS)
 
Income Taxes [Line Items]
 
Net operating loss carryforwards
$ 264.5 
Net operating loss carryforwards, expiration date
2017 
Deferred Revenues Net (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Deferred Revenue Arrangement [Line Items]
 
 
Deferred merchandise trust unrealized gains (losses)
$ (24,685)
$ 2,284 
Deferred revenues
815,421 
800,288 
Deferred selling and obtaining costs
111,542 
97,795 
Contract Revenues
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenues
759,812 
693,287 
Merchandise Trusts
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenues
$ 80,294 
$ 104,717 
Long Term Incentive and Retirement Plans - Additional Information (Detail) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total compensation expense for unit awards
$ 1,516,000 
$ 1,068,000 
$ 1,370,000 
 
2014 Plan
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Long-Term Incentive Plan, common units permitted for grant
1,500,000 
 
 
 
Long-Term Incentive Plan, common units increase per year
100,000 
 
 
 
Long-Term Incentive Plan, common units to be issued upon vesting and exercise
102,661 
 
 
 
Long-Term Incentive Plan, common units to issued
14,455 
 
 
 
Long-Term Incentive Plan, common units available for future issuance
1,382,884 
 
 
 
Long-Term Incentive Plan, common units increased for issuance during the period
 
 
 
2004 Plan
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Long-Term Incentive Plan, common units to be issued upon vesting and exercise
187,328 
 
 
 
Long-Term Incentive Plan, common units to issued
626,188 
 
 
 
Long-Term Incentive Plan, common units available for future issuance
 
 
 
2013 UAR Agreements
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Long-Term incentive plan, aggregate fair value
 
 
100,000 
 
2014 UAR Agreements
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Long-Term incentive plan, aggregate fair value
 
100,000 
 
 
Unit appreciation rights
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total compensation expense for unit awards
100,000 
100,000 
500,000 
 
UARs granted under LTIP, contractual term
5 years 
 
 
 
UARs vesting period
48 months 
 
 
 
UARs granted under LTIP, outstanding
66,793 1
123,000 1
673,716 1
774,598 
Unrecognized compensation cost related to non-vested UARs
100,000 
 
 
 
Common units issued as a result of UARs exercise
7,716 
152,823 
34,096 
 
Unit appreciation rights |
vesting within the following 12 months
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
UARs vesting period
12 months 
 
 
 
UARs granted under LTIP, outstanding
20,313 
 
 
 
Restricted phantom units
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total compensation expense for unit awards
$ 1,000,000 
$ 1,000,000 
$ 800,000 
 
Restricted phantom units |
2014 Plan
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
UARs granted under LTIP, outstanding
102,661 2
2,189 2
 
 
Restricted phantom units |
2004 Plan
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
UARs granted under LTIP, outstanding
184,457 3
169,122 3
162,103 3
143,213 
Long-Term Incentive Plan and Unit Appreciation Right Activity (Detail)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Restricted phantom units |
2014 Plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Outstanding, beginning of period
2,189 1
 
 
Granted
122,154 2
2,189 2
 
Settled in common units or cash
(14,455)2
 
 
Forfeited
(7,227)
 
 
Outstanding, end of period
102,661 1
2,189 1
 
Restricted phantom units |
2004 Plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Outstanding, beginning of period
169,122 3
162,103 3
143,213 
Granted
15,335 4
23,003 4
18,890 4
Settled in common units or cash
 
(15,984)
 
Outstanding, end of period
184,457 3
169,122 3
162,103 3
Unit appreciation rights
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Outstanding, beginning of period
123,000 5
673,716 5
774,598 
Granted
 
15,000 
52,500 
Forfeited
(5,730)
(11,250)
(20,272)
Outstanding, end of period
66,793 5
123,000 5
673,716 5
Exercised
(50,477)
(554,466)
(133,110)
Exercisable, end of period
33,092 
57,090 
594,248 
Long-Term Incentive Plan and Unit Appreciation Right Activity (Parenthetical) (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Restricted phantom units |
2014 Plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Long-Term incentive plan, fair value per unit
$ 26.94 
$ 26.27 
 
Common unit awards vested during the period, intrinsic values
$ 0.6 
$ 0.1 
 
Common unit awards outstanding, intrinsic values
2.7 
 
 
Restricted phantom units |
2004 Plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Long-Term incentive plan, fair value per unit
$ 28.42 
$ 24.90 
$ 25.29 
Common unit awards vested during the period, intrinsic values
0.9 
1.0 
0.8 
Restricted Phantom Stock Awards |
2004 Plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Common unit awards outstanding, intrinsic values
4.9 
 
 
Unit appreciation rights
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Common unit awards outstanding, intrinsic values
$ 0.1 
 
 
Common unit awards outstanding, weighted average remaining contractual life
2 years 7 months 6 days 
 
 
Weighted-Average Values and Assumptions Used to Estimate Fair Value of Unit Appreciation Rights (Detail)
12 Months Ended
Dec. 31, 2015
2014 UAR Agreements
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Expected dividend yield
9.95% 
Risk-free interest rate
1.06% 
Expected volatility
27.13% 
Expected life (in years)
3 years 6 months 7 days 
Fair value per UAR granted
$ 1.60 
2013 UAR Agreements
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Expected dividend yield
9.14% 
Risk-free interest rate
0.63% 
Expected volatility
28.57% 
Expected life (in years)
3 years 6 months 7 days 
Fair value per UAR granted
$ 2.09 
Commitments and Contingencies - Additional Information (Detail) (USD $)
12 Months Ended
Dec. 31, 2015
Employee
Dec. 31, 2014
Dec. 31, 2013
Leases And Employment Agreements Disclosure [Line Items]
 
 
 
Legal settlement
$ (3,135,000)
 
 
Operating lease expense
$ 3,400,000 
$ 2,500,000 
$ 2,700,000 
Number Of Senior Executives
 
 
Senior Executives
 
 
 
Leases And Employment Agreements Disclosure [Line Items]
 
 
 
Employment agreement term
3 years 
 
 
Minimum
 
 
 
Leases And Employment Agreements Disclosure [Line Items]
 
 
 
Operating lease, initial term
1 year 
 
 
Maximum
 
 
 
Leases And Employment Agreements Disclosure [Line Items]
 
 
 
Operating lease, initial term
25 years 
 
 
Operating Lease Future Payments (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Operating Leases Future Minimum Payments Due [Line Items]
 
2016
$ 3,356 
2017
3,520 
2018
3,411 
2019
3,069 
2020
1,784 
Thereafter
10,471 
Total
$ 25,611 
Fair Value of Financial Instruments - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Senior Notes
Dec. 31, 2014
Senior Notes
Dec. 31, 2015
Senior Notes
Level 2
Dec. 31, 2014
Senior Notes
Level 2
Dec. 31, 2015
Line of Credit
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Notes payable, fair value
 
 
$ 179.9 
$ 182.2 
 
Notes payable, carrying value
$ 172.2 
$ 171.8 
 
 
 
Debt instrument maturity term
 
 
 
 
90 days 
Condensed Consolidating Balance Sheets (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Current assets:
 
 
 
 
Cash and cash equivalents
$ 15,153 
$ 10,401 
$ 12,175 
$ 7,946 
Other current assets
96,023 
96,353 
 
 
Total current assets
111,176 
106,754 
 
 
Long-term accounts receivable
95,167 
89,536 
 
 
Cemetery property and equipment
450,584 
443,078 
 
 
Merchandise trusts
464,676 
484,820 
 
 
Perpetual care trusts
307,804 
345,105 
 
 
Deferred selling and obtaining costs
111,542 
97,795 
 
 
Goodwill and intangible assets
137,060 
127,826 
 
 
Other assets
16,348 
4,540 
 
 
Total assets
1,694,357 
1,699,454 
1,475,405 
 
Liabilities and Equity
 
 
 
 
Current liabilities
33,932 
36,966 
 
 
Long-term debt, net of deferred financing costs
316,399 
276,289 
 
 
Deferred revenues
815,421 
800,288 
 
 
Perpetual care trust corpus
307,804 
345,105 
 
 
Other long-term liabilities
39,255 
35,196 
 
 
Total liabilities
1,512,811 
1,493,844 
 
 
Partners' Capital
181,546 
205,610 
102,754 
130,942 
Total liabilities and partners' capital
1,694,357 
1,699,454 
 
 
Consolidation, Eliminations
 
 
 
 
Current assets:
 
 
 
 
Due from affiliates
(626,790)
(637,690)
 
 
Investment in affiliates
(225,096)
(278,205)
 
 
Total assets
(851,886)
(915,895)
 
 
Liabilities and Equity
 
 
 
 
Due to affiliates
(626,790)
(637,690)
 
 
Total liabilities
(626,790)
(637,690)
 
 
Partners' Capital
(225,096)
(278,205)
 
 
Total liabilities and partners' capital
(851,886)
(915,895)
 
 
Parent
 
 
 
 
Current assets:
 
 
 
 
Due from affiliates
67,890 
67,700 
 
 
Investment in affiliates
181,546 
205,610 
 
 
Total assets
249,436 
273,310 
 
 
Liabilities and Equity
 
 
 
 
Long-term debt, net of deferred financing costs
67,890 
67,700 
 
 
Total liabilities
67,890 
67,700 
 
 
Partners' Capital
181,546 
205,610 
 
 
Total liabilities and partners' capital
249,436 
273,310 
 
 
Subsidiary Issuer
 
 
 
 
Current assets:
 
 
 
 
Other current assets
4,858 
4,293 
 
 
Total current assets
4,858 
4,293 
 
 
Long-term accounts receivable
2,888 
2,453 
 
 
Cemetery property and equipment
1,084 
1,033 
 
 
Deferred selling and obtaining costs
5,967 
5,744 
 
 
Due from affiliates
122,089 
133,569 
 
 
Investment in affiliates
43,550 
64,429 
 
 
Total assets
180,436 
211,521 
 
 
Liabilities and Equity
 
 
 
 
Current liabilities
12 
263 
 
 
Long-term debt, net of deferred financing costs
104,295 
104,100 
 
 
Deferred revenues
40,467 
44,287 
 
 
Total liabilities
144,774 
148,650 
 
 
Partners' Capital
35,662 
62,871 
 
 
Total liabilities and partners' capital
180,436 
211,521 
 
 
Guarantor Subsidiaries
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
11,869 
7,059 
9,263 
3,950 
Other current assets
78,464 
81,385 
 
 
Total current assets
90,333 
88,444 
 
 
Long-term accounts receivable
80,969 
76,416 
 
 
Cemetery property and equipment
418,400 
411,822 
 
 
Deferred selling and obtaining costs
91,275 
81,195 
 
 
Goodwill and intangible assets
78,223 
67,993 
 
 
Other assets
14,153 
2,294 
 
 
Due from affiliates
436,811 
436,421 
 
 
Investment in affiliates
 
8,166 
 
 
Total assets
1,210,164 
1,172,751 
 
 
Liabilities and Equity
 
 
 
 
Current liabilities
33,083 
35,888 
 
 
Long-term debt, net of deferred financing costs
144,214 
104,489 
 
 
Deferred revenues
697,516 
684,631 
 
 
Other long-term liabilities
29,761 
26,429 
 
 
Due to affiliates
172,185 
171,800 
 
 
Total liabilities
1,076,759 
1,023,237 
 
 
Partners' Capital
133,405 
149,514 
 
 
Total liabilities and partners' capital
1,210,164 
1,172,751 
 
 
Non-Guarantor Subsidiaries
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
3,284 
3,342 
2,912 
3,996 
Other current assets
12,701 
10,675 
 
 
Total current assets
15,985 
14,017 
 
 
Long-term accounts receivable
11,310 
10,667 
 
 
Cemetery property and equipment
31,100 
30,223 
 
 
Merchandise trusts
464,676 
484,820 
 
 
Perpetual care trusts
307,804 
345,105 
 
 
Deferred selling and obtaining costs
14,300 
10,856 
 
 
Goodwill and intangible assets
58,837 
59,833 
 
 
Other assets
2,195 
2,246 
 
 
Total assets
906,207 
957,767 
 
 
Liabilities and Equity
 
 
 
 
Current liabilities
837 
815 
 
 
Deferred revenues
77,438 
71,370 
 
 
Perpetual care trust corpus
307,804 
345,105 
 
 
Other long-term liabilities
9,494 
8,767 
 
 
Due to affiliates
454,605 
465,890 
 
 
Total liabilities
850,178 
891,947 
 
 
Partners' Capital
56,029 
65,820 
 
 
Total liabilities and partners' capital
$ 906,207 
$ 957,767 
 
 
Condensed Consolidating Statements of Operations (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total revenues
$ 82,811 
$ 81,768 
$ 84,513 
$ 70,493 
$ 78,025 
$ 82,435 
$ 75,432 
$ 67,897 
$ 319,585 
$ 303,789 
$ 255,526 
Total cost and expenses
 
 
 
 
 
 
 
 
(317,395)
(287,884)
(250,921)
Other income (loss)
 
 
 
 
 
 
 
 
(1,891)
890 
(6,649)
Interest expense
 
 
 
 
 
 
 
 
(22,585)
(21,610)
(21,070)
Loss before income taxes
 
 
 
 
 
 
 
 
(22,286)
(4,815)
(23,114)
Income tax benefit (expense)
 
 
 
 
 
 
 
 
(938)
(4,057)
3,514 
Net income (loss)
(6,810)
(3,260)
(4,644)
(8,510)
(6,421)
(2,691)
(97)
337 
(23,224)
(8,872)
(19,600)
Consolidation, Eliminations
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
 
 
 
 
 
 
 
(10,299)
(12,131)
(15,069)
Total cost and expenses
 
 
 
 
 
 
 
 
10,299 
12,131 
15,069 
Net loss from equity investment in subsidiaries
 
 
 
 
 
 
 
 
38,821 
14,773 
20,367 
Loss before income taxes
 
 
 
 
 
 
 
 
38,821 
14,773 
20,367 
Net income (loss)
 
 
 
 
 
 
 
 
38,821 
14,773 
20,367 
Parent
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net loss from equity investment in subsidiaries
 
 
 
 
 
 
 
 
(17,790)
(3,438)
(14,166)
Interest expense
 
 
 
 
 
 
 
 
(5,434)
(5,434)
(5,434)
Loss before income taxes
 
 
 
 
 
 
 
 
(23,224)
(8,872)
(19,600)
Net income (loss)
 
 
 
 
 
 
 
 
(23,224)
(8,872)
(19,600)
Subsidiary Issuer
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
 
 
 
 
 
 
 
5,751 
8,270 
5,762 
Total cost and expenses
 
 
 
 
 
 
 
 
(10,656)
(11,581)
(8,550)
Other income (loss)
 
 
 
 
 
 
 
 
 
 
12,261 
Net loss from equity investment in subsidiaries
 
 
 
 
 
 
 
 
(21,031)
(11,335)
(6,201)
Interest expense
 
 
 
 
 
 
 
 
(8,348)
(8,347)
(8,347)
Loss before income taxes
 
 
 
 
 
 
 
 
(34,284)
(22,993)
(5,075)
Net income (loss)
 
 
 
 
 
 
 
 
(34,284)
(22,993)
(5,075)
Guarantor Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
 
 
 
 
 
 
 
275,795 
269,712 
234,979 
Total cost and expenses
 
 
 
 
 
 
 
 
(269,748)
(248,307)
(223,054)
Other income (loss)
 
 
 
 
 
 
 
 
(1,891)
890 
(18,910)
Interest expense
 
 
 
 
 
 
 
 
(8,075)
(7,430)
(7,289)
Loss before income taxes
 
 
 
 
 
 
 
 
(3,919)
14,865 
(14,274)
Income tax benefit (expense)
 
 
 
 
 
 
 
 
(938)
(4,057)
3,514 
Net income (loss)
 
 
 
 
 
 
 
 
(4,857)
10,808 
(10,760)
Non-Guarantor Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
 
 
 
 
 
 
 
48,338 
37,938 
29,854 
Total cost and expenses
 
 
 
 
 
 
 
 
(47,290)
(40,127)
(34,386)
Interest expense
 
 
 
 
 
 
 
 
(728)
(399)
 
Loss before income taxes
 
 
 
 
 
 
 
 
320 
(2,588)
(4,532)
Net income (loss)
 
 
 
 
 
 
 
 
$ 320 
$ (2,588)
$ (4,532)
Condensed Consolidating Statement of Cash Flows (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Condensed Financial Statements, Captions [Line Items]
 
 
 
Net cash provided by (used in) operating activities
$ 4,062 
$ 19,448 
$ 35,077 
Cash Flows From Investing Activities:
 
 
 
Cash paid for acquisitions and capital expenditures
(34,139)
(70,658)
(26,697)
Consideration for lease and management agreements
 
(53,000)
 
Net cash used in investing activities
(34,139)
(123,658)
(26,697)
Cash Flows From Financing Activities:
 
 
 
Cash distributions
(77,512)
(62,836)
(52,053)
Net borrowings and repayments of debt
37,261 
(5,275)
29,570 
Proceeds from issuance of common units
75,156 
173,497 
38,377 
Other financing activities
(76)
(2,950)
(20,045)
Net cash provided by (used in) financing activities
34,829 
102,436 
(4,151)
Net increase (decrease) in cash and cash equivalents
4,752 
(1,774)
4,229 
Cash and cash equivalents - Beginning of period
10,401 
12,175 
7,946 
Cash and cash equivalents - End of period
15,153 
10,401 
12,175 
Consolidation, Eliminations
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
Net cash provided by (used in) operating activities
(16,137)
(13,781)
(27,457)
Cash Flows From Investing Activities:
 
 
 
Payments to affiliates
 
163,661 
 
Net cash used in investing activities
 
163,661 
 
Cash Flows From Financing Activities:
 
 
 
Payments from (to) affiliates
16,137 
(149,880)
27,457 
Net cash provided by (used in) financing activities
16,137 
(149,880)
27,457 
Parent
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
Net cash provided by (used in) operating activities
2,356 
 
13,676 
Cash Flows From Investing Activities:
 
 
 
Payments to affiliates
 
(110,661)
 
Net cash used in investing activities
 
(110,661)
 
Cash Flows From Financing Activities:
 
 
 
Cash distributions
(77,512)
(62,836)
(52,053)
Proceeds from issuance of common units
75,156 
173,497 
38,377 
Net cash provided by (used in) financing activities
(2,356)
110,661 
(13,676)
Subsidiary Issuer
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
Net cash provided by (used in) operating activities
284 
150 
73 
Cash Flows From Investing Activities:
 
 
 
Cash paid for acquisitions and capital expenditures
(284)
(150)
(73)
Net cash used in investing activities
(284)
(150)
(73)
Guarantor Subsidiaries
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
Net cash provided by (used in) operating activities
14,626 
29,918 
49,544 
Cash Flows From Investing Activities:
 
 
 
Cash paid for acquisitions and capital expenditures
(30,864)
(67,777)
(26,299)
Payments to affiliates
 
(53,000)
 
Net cash used in investing activities
(30,864)
(120,777)
(26,299)
Cash Flows From Financing Activities:
 
 
 
Payments from (to) affiliates
(16,137)
96,880 
(27,457)
Net borrowings and repayments of debt
37,261 
(5,275)
29,570 
Other financing activities
(76)
(2,950)
(20,045)
Net cash provided by (used in) financing activities
21,048 
88,655 
(17,932)
Net increase (decrease) in cash and cash equivalents
4,810 
(2,204)
5,313 
Cash and cash equivalents - Beginning of period
7,059 
9,263 
3,950 
Cash and cash equivalents - End of period
11,869 
7,059 
9,263 
Non-Guarantor Subsidiaries
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
Net cash provided by (used in) operating activities
2,933 
3,161 
(759)
Cash Flows From Investing Activities:
 
 
 
Cash paid for acquisitions and capital expenditures
(2,991)
(2,731)
(325)
Consideration for lease and management agreements
 
(53,000)
 
Net cash used in investing activities
(2,991)
(55,731)
(325)
Cash Flows From Financing Activities:
 
 
 
Payments from (to) affiliates
 
53,000 
 
Net cash provided by (used in) financing activities
 
53,000 
 
Net increase (decrease) in cash and cash equivalents
(58)
430 
(1,084)
Cash and cash equivalents - Beginning of period
3,342 
2,912 
3,996 
Cash and cash equivalents - End of period
$ 3,284 
$ 3,342 
$ 2,912 
Issuances of Limited Partner Units - Additional Information (Detail) (USD $)
0 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended
Jul. 10, 2015
Jun. 30, 2014
May 31, 2014
Feb. 28, 2014
Mar. 31, 2013
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Jul. 10, 2015
Dec. 31, 2015
ATM Agreement
Nov. 19, 2015
ATM Agreement
Maximum
Nov. 19, 2015
ATM Agreement
Maximum
Limited Partners' Capital Account [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Value of shares issuable under market agreement
 
 
 
 
 
 
 
 
 
 
$ 100,000,000 
 
Agent commission, maximum percentage of gross sales price of common units sold
 
 
 
 
 
 
 
 
 
 
 
2.00% 
Issuance of common units
 
 
 
 
 
 
 
 
 
277,667 
 
 
Proceeds from issuance of common units, net
 
 
 
 
 
 
 
 
 
7,500,000 
 
 
Public offering, common units sold
2,415,000 
2,990,000 
 
2,300,000 
1,610,000 
 
 
 
 
 
 
 
Public offering, price per unit
 
$ 23.67 
 
$ 24.45 
$ 25.35 
 
 
 
$ 29.63 
 
 
 
Public offering, net proceeds
67,900,000 
67,100,000 
 
53,200,000 
38,400,000 
 
 
 
 
 
 
 
Common units issued
 
 
2,255,947 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of common units
 
 
55,000,000 
 
 
75,156,000 
173,497,000 
38,377,000 
 
 
 
 
Distribution units issued
 
 
 
 
 
204,804 
111,740 
 
 
 
 
 
Cash Distributions paid
 
 
 
 
 
$ 5,800,000 
$ 2,800,000 
 
 
 
 
 
Segment Information (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
$ 82,811 
$ 81,768 
$ 84,513 
$ 70,493 
$ 78,025 
$ 82,435 
$ 75,432 
$ 67,897 
$ 319,585 
$ 303,789 
$ 255,526 
Depreciation and amortization
 
 
 
 
 
 
 
 
(12,803)
(11,081)
(9,548)
Operating income
 
 
 
 
 
 
 
 
2,190 
15,905 
4,605 
Total segment income (loss)
 
 
 
 
 
 
 
 
42,579 
51,605 
35,707 
Corporate overhead
 
 
 
 
 
 
 
 
(38,609)
(34,723)
(29,926)
Capital expenditures
 
 
 
 
 
 
 
 
15,339 
14,574 
12,752 
Corporate depreciation and amortization
 
 
 
 
 
 
 
 
(1,780)
(977)
(1,176)
Assets
1,694,357 
 
 
 
1,699,454 
 
 
 
1,694,357 
1,699,454 
1,475,405 
Other net gains (losses)
 
 
 
 
 
 
 
 
(1,891)
890 
(6,649)
Goodwill
69,851 
 
 
 
58,836 
 
 
 
69,851 
58,836 
48,737 
Interest expense
 
 
 
 
 
 
 
 
(22,585)
(21,610)
(21,070)
Income tax benefit (expense)
 
 
 
 
 
 
 
 
(938)
(4,057)
3,514 
Net loss
(6,810)
(3,260)
(4,644)
(8,510)
(6,421)
(2,691)
(97)
337 
(23,224)
(8,872)
(19,600)
Cemetery
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
261,815 
255,103 
210,571 
Operating costs and expenses
 
 
 
 
 
 
 
 
(218,570)
(202,370)
(175,793)
Depreciation and amortization
 
 
 
 
 
 
 
 
(7,766)
(6,904)
(5,336)
Operating income
 
 
 
 
 
 
 
 
35,479 
45,829 
29,442 
Total segment income (loss)
 
 
 
 
 
 
 
 
35,479 
45,829 
29,442 
Capital expenditures
 
 
 
 
 
 
 
 
11,853 
13,368 
10,111 
Assets
1,481,926 
 
 
 
1,517,073 
 
 
 
1,481,926 
1,517,073 
1,319,660 
Goodwill
25,320 
 
 
 
24,186 
 
 
 
25,320 
24,186 
18,122 
Funeral Home
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
57,770 
48,686 
44,955 
Operating costs and expenses
 
 
 
 
 
 
 
 
(47,413)
(39,710)
(35,654)
Depreciation and amortization
 
 
 
 
 
 
 
 
(3,257)
(3,200)
(3,036)
Operating income
 
 
 
 
 
 
 
 
7,100 
5,776 
6,265 
Total segment income (loss)
 
 
 
 
 
 
 
 
7,100 
5,776 
6,265 
Capital expenditures
 
 
 
 
 
 
 
 
580 
545 
1,250 
Assets
190,443 
 
 
 
164,925 
 
 
 
190,443 
164,925 
135,232 
Goodwill
44,531 
 
 
 
34,650 
 
 
 
44,531 
34,650 
30,615 
Corporate
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
 
 
 
 
 
 
 
2,906 
661 
1,391 
Assets
$ 21,988 
 
 
 
$ 17,456 
 
 
 
$ 21,988 
$ 17,456 
$ 20,513 
Subsequent Events - Additional Information (Detail) (Subsequent Event, USD $)
In Millions, except Share data, unless otherwise specified
0 Months Ended 1 Months Ended
Jan. 26, 2016
Feb. 29, 2016
ATM Agreement
Jan. 31, 2016
ATM Agreement
Subsequent Event [Line Items]
 
 
 
Quarterly cash distribution per common unit
$ 0.66 
 
 
Distribution payable date
Feb. 12, 2016 
 
 
Distribution record date
Feb. 05, 2016 
 
 
Issuance of common units
 
474,657 
Proceeds from issuance of common units, net
 
 
$ 12.4 
Summary of Effect of Restatement Adjustments on Quarterly Results of Operations (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Revenues
$ 82,811 
$ 81,768 
$ 84,513 
$ 70,493 
$ 78,025 
$ 82,435 
$ 75,432 
$ 67,897 
$ 319,585 
$ 303,789 
$ 255,526 
Net income (loss)
(6,810)
(3,260)
(4,644)
(8,510)
(6,421)
(2,691)
(97)
337 
(23,224)
(8,872)
(19,600)
General partner's interest in net income (loss) for the period
1,004 
1,020 
899 
685 
623 
583 
526 
367 
(3,608)
(2,099)
(911)
Limited partners' interest in net income (loss) for the period
(7,814)
(4,280)
(5,543)
(9,195)
(7,044)
(3,274)
(623)
(30)
(26,832)
(10,971)
(20,511)
Net income (loss) per limited partner unit (basic and diluted):
$ (0.25)
$ (0.14)
$ (0.19)
$ (0.31)
$ (0.24)
$ (0.11)
$ (0.02)
 
 
 
 
As Filed
 
 
 
 
 
 
 
 
 
 
 
Revenues
79,198 
78,200 
80,825 
67,417 
73,991 
78,174 
71,533 
64,387 
305,640 
288,085 
246,641 
Net income (loss)
(7,111)
(3,402)
(4,848)
(8,883)
(7,796)
(3,268)
(118)
409 
(24,244)
(10,773)
(19,032)
General partner's interest in net income (loss) for the period
(88)
(42)
(65)
(120)
(106)
(44)
(9)
315 
155 
350 
Limited partners' interest in net income (loss) for the period
(7,023)
(3,360)
(4,783)
(8,763)
(7,690)
(3,224)
(109)
405 
(23,929)
(10,618)
(18,682)
Net income (loss) per limited partner unit (basic and diluted):
$ (0.22)
$ (0.11)
$ (0.16)
$ (0.30)
$ (0.26)
$ (0.11)
 
$ 0.02 
 
 
 
Restatement Adjustments
 
 
 
 
 
 
 
 
 
 
 
Revenues
3,613 
3,568 
3,688 
3,076 
4,034 
4,261 
3,899 
3,510 
13,945 
15,704 
8,885 
Net income (loss)
301 
142 
204 
373 
1,375 
577 
21 
(72)
1,020 
1,901 
(568)
General partner's interest in net income (loss) for the period
1,092 
1,062 
964 
805 
729 
627 
535 
363 
(3,923)
(2,254)
(1,261)
Limited partners' interest in net income (loss) for the period
$ (791)
$ (920)
$ (760)
$ (432)
$ 646 
$ (50)
$ (514)
$ (435)
$ (2,903)
$ (353)
$ (1,829)
Net income (loss) per limited partner unit (basic and diluted):
$ (0.03)
$ (0.03)
$ (0.03)
$ (0.01)
$ 0.02 
 
$ (0.02)
$ (0.02)