STONEMOR PARTNERS LP, 10-Q filed on 1/25/2018
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2017
Jan. 19, 2018
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Sep. 30, 2017 
 
Document Fiscal Year Focus
2017 
 
Document Fiscal Period Focus
Q3 
 
Trading Symbol
STON 
 
Entity Registrant Name
STONEMOR PARTNERS LP 
 
Entity Central Index Key
0001286131 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
37,957,936 
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Current assets:
 
 
Cash and cash equivalents
$ 8,460 
$ 12,570 
Accounts receivable, net of allowance
77,058 
77,253 
Prepaid expenses
7,949 
5,532 
Assets held for sale
1,169 
Other current assets
24,524 
23,466 
Total current assets
119,160 
118,821 
Long-term accounts receivable, net of allowance
101,094 
98,886 
Cemetery property
334,208 
337,315 
Property and equipment, net of accumulated depreciation
115,116 
118,281 
Merchandise trusts, restricted, at fair value
512,181 
507,079 
Perpetual care trusts, restricted, at fair value
338,611 
333,780 
Deferred selling and obtaining costs
124,137 
116,890 
Deferred tax assets
68 
64 
Goodwill
70,436 
70,436 
Intangible assets
63,740 
65,438 
Other assets
20,603 
20,023 
Total assets
1,799,354 
1,787,013 
Current liabilities:
 
 
Accounts payable and accrued liabilities
47,157 
35,547 
Accrued interest
5,159 
1,571 
Current portion, long-term debt
1,114 
1,775 
Total current liabilities
53,430 
38,893 
Long-term debt, net of deferred financing costs
306,572 
300,351 
Deferred revenues
903,853 
866,633 
Deferred tax liabilities
21,487 
20,058 
Perpetual care trust corpus
338,611 
333,780 
Other long-term liabilities
38,655 
36,944 
Total liabilities
1,662,608 
1,596,659 
Commitments and contingencies
   
   
Partners' capital (deficit):
 
 
General partner interest
(2,486)
(1,914)
Common limited partners' interest
139,232 
192,268 
Total partners' capital
136,746 
190,354 
Total liabilities and partners' capital
$ 1,799,354 
$ 1,787,013 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Revenues:
 
 
 
 
Total revenues
$ 84,034 
$ 80,773 
$ 252,932 
$ 237,923 
Costs and Expenses:
 
 
 
 
Cost of goods sold
11,910 
11,721 
37,472 
34,483 
Selling expense
17,082 
16,466 
49,164 
47,774 
General and administrative expense
9,752 
9,522 
29,462 
27,719 
Corporate overhead
11,887 
10,058 
39,058 
30,106 
Depreciation and amortization
3,186 
2,927 
10,032 
9,147 
Total costs and expenses
86,382 
84,451 
259,442 
242,808 
Other gains (losses), net
338 
(506)
(733)
(1,579)
Interest expense
(6,944)
(5,934)
(20,391)
(17,431)
Net income (loss) before income taxes
(8,954)
(10,118)
(27,634)
(23,895)
Income tax benefit (expense)
(622)
169 
(2,085)
(591)
Net loss
(9,576)
(9,949)
(29,719)
(24,486)
General partner's interest
(99)
(111)
(309)
2,081 
Limited partners' interest
(9,477)
(9,838)
(29,410)
(26,567)
Net loss per limited partner unit (basic and diluted) (in USD per unit)
$ (0.25)
$ (0.28)
$ (0.78)
$ (0.77)
Weighted average number of limited partners' units outstanding (basic and diluted) (in shares)
37,958 
35,470 
37,945 
34,287 
Cemetery
 
 
 
 
Revenues:
 
 
 
 
Merchandise
40,331 
38,129 
119,229 
110,239 
Services
15,414 
14,260 
46,703 
41,712 
Investment and other
13,798 
14,340 
39,884 
40,805 
Total revenues
69,543 
66,729 
205,816 
192,756 
Costs and Expenses:
 
 
 
 
Cemetery expense
19,984 
19,926 
56,805 
53,267 
Depreciation and amortization
2,175 
2,058 
6,734 
6,042 
Funeral Home
 
 
 
 
Revenues:
 
 
 
 
Merchandise
6,591 
6,708 
21,176 
20,794 
Services
7,900 
7,336 
25,940 
24,373 
Total revenues
14,491 
14,044 
47,116 
45,167 
Costs and Expenses:
 
 
 
 
Cost of goods sold
1,793 
2,322 
5,176 
6,306 
Depreciation and amortization
753 
692 
2,369 
2,427 
Services
5,442 
6,076 
16,595 
18,687 
Other
$ 5,346 
$ 5,433 
$ 15,678 
$ 15,319 
CONDENSED CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL (UNAUDITED) (USD $)
In Thousands, except Share data, unless otherwise specified
Total
USD ($)
Outstanding Common Units
Common Limited Partners
USD ($)
General Partner
USD ($)
Beginning Balance at Dec. 31, 2016
$ 190,354 
 
$ 192,268 
$ (1,914)
Beginning Balance (in units) at Dec. 31, 2016
 
37,863,496 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
Issuance of common units
744 
 
744 
 
Common unit awards under incentive plans
656 
 
656 
 
Common unit awards under incentive plans (in units)
 
16,098 
 
 
Net loss
(29,719)
 
(29,410)
(309)
Cash distributions
(24,545)
 
(24,282)
(263)
Unit distributions paid in kind
(744)
 
(744)
 
Unit distributions paid in kind (in units)
 
78,342 
 
 
Ending Balance at Sep. 30, 2017
$ 136,746 
 
$ 139,232 
$ (2,486)
Ending Balance (in units) at Sep. 30, 2017
 
37,957,936 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash Flows From Operating Activities:
 
 
Net loss
$ (29,719)
$ (24,486)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
Cost of lots sold
7,823 
6,773 
Depreciation and amortization
10,032 
9,147 
Provision for cancellations
5,123 
9,732 
Non-cash compensation expense
656 
1,468 
Non-cash interest expense
3,318 
2,510 
Other (gains) losses, net
517 
975 
Changes in assets and liabilities:
 
 
Accounts receivable, net of allowance
(8,576)
(18,899)
Merchandise trust fund
44,251 
(13,248)
Other assets
(5,053)
(4,549)
Deferred selling and obtaining costs
(7,246)
(9,819)
Deferred revenues
(12,119)
49,821 
Deferred taxes, net
1,425 
(245)
Payables and other liabilities
14,269 
9,307 
Net cash provided by operating activities
24,701 
18,487 
Cash Flows From Investing Activities:
 
 
Cash paid for capital expenditures
(7,960)
(9,655)
Cash paid for acquisitions
(10,550)
Proceeds from divestitures
701 
Proceeds from asset sales
401 
1,896 
Net cash used in investing activities
(6,858)
(18,309)
Cash Flows From Financing Activities:
 
 
Cash distributions
(24,545)
(68,062)
Proceeds from borrowings
78,792 
207,868 
Repayments of debt
(74,627)
(207,700)
Proceeds from issuance of common units, net of costs
74,535 
Cost of financing activities
(1,573)
(6,362)
Net cash provided by (used in) financing activities
(21,953)
279 
Net increase (decrease) in cash and cash equivalents
(4,110)
457 
Cash and cash equivalents - Beginning of period
12,570 
15,153 
Cash and cash equivalents - End of period
8,460 
15,610 
Supplemental disclosure of cash flow information:
 
 
Cash paid during the period for interest
13,653 
11,434 
Cash paid during the period for income taxes
2,884 
3,114 
Non-cash investing and financing activities:
 
 
Acquisition of assets by financing
2,285 
505 
Classification of assets as held for sale
$ 1,169 
$ 0 
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 September 30, 2017, the Partnership operated 316 cemeteries in 27 states and Puerto Rico, of which 285 are owned and 31 are operated under lease, management or operating agreements. The Partnership also owned and operated 97 funeral homes, including 45 located on the grounds of cemetery properties that we own, in 18 states and Puerto Rico.
Basis of Presentation
The accompanying condensed consolidated financial statements, which are unaudited except for the balance sheet at December 31, 2016, which is derived from audited financial statements, have been prepared in accordance with the requirements of Form 10-Q and accounting principles generally accepted in the United States (“GAAP”) for interim reporting. They do not include all disclosures normally made in financial statements contained in Form 10-K. In management’s opinion, all adjustments necessary for a fair presentation of the Partnership’s financial position, results of operations and cash flows for the periods disclosed have been made. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto presented in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2016. The results of operations for the three and nine months ended September 30, 2017 may not necessarily be indicative of the results of operations for the full year ended December 31, 2017.
Principles of Consolidation
The unaudited condensed consolidated financial statements include the accounts of each of the Partnership’s 100% 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. 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 customer contract related performance obligations that it assumed as part of these agreements.

Restatement of Previously Issued Unaudited Condensed Consolidated Financial Statements
On September 18, 2017, the Partnership filed its Annual Report on Form 10-K for the year ended December 31, 2016, which amended the Partnership's audited consolidated financial statements as of December 31, 2015, and for each of the two years in the period ended December 31, 2015 and the related notes thereto. This Form 10-Q amends the Partnership’s unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2016 and the related notes thereto, included on Form 10-Q filed on November 9, 2016 ("Original Filing"). The Restatement reflects the correction of the following errors identified subsequent to the Original Filing:
A.
The Partnership understated recognized revenues from the satisfaction of cemetery and funeral home performance obligations in its condensed consolidated statement of operations. The understatement was primarily due to lags in or omissions of the data entry of a contract servicing event. The adjustments to correct these accounting errors resulted in a net increase of $2.2 million in revenues for the three months ended September 30, 2016, of which $1.9 million related to merchandise revenues, and a net increase of $4.1 million in revenues for the nine months ended September 30, 2016, of which $3.5 million related to merchandise revenues.
B.
In conjunction with the foregoing revenue recognition errors, on its condensed consolidated balance sheet, the Partnership had historically (i) deferred incorrect and imprecise amounts of investment revenues and expenses related to its merchandise trusts, (ii) reserved incorrect amounts for future cancellations related to its cemetery and funeral home performance obligations, and (iii) deferred incorrect amounts of selling costs. The correction of these accounting errors resulted in a net increase in "Selling expense" of $0.5 million for the three months ended September 30, 2016. The correction of these accounting errors resulted in a net increase in “Cemetery investment and other revenues” of $0.1 million for the nine months ended September 30, 2016 due to changes in the inputs used to calculate trust income recognition. This also resulted in a decrease in “Cemetery merchandise revenues” of $0.1 million for the nine months ended September 30, 2016 due to an increase in cancellation reserve expense and an increase in “Selling expense” of $0.9 million for that period.
C.
Certain components of “Other current assets” and “Accounts payable and accrued liabilities” on its condensed consolidated balance sheet were determined to be inappropriate in the Partnership’s review of accounting policies during its ongoing remediation. The Partnership had historically presented intercompany deposits due to its merchandise and perpetual care trust funds within “Other current assets” and presented intercompany payables to its merchandise and perpetual care trusts in “Accounts payable and accrued liabilities”. The Partnership has determined the intercompany payables and liabilities to its consolidated trust funds should be eliminated. The correction of the error resulted in a reclassification of $1.7 million in the condensed consolidated statements of cash flows between "Other assets" and "Payables and other liabilities" for the nine months ended September 30, 2016.
D.
Specific to the Partnership’s disclosure in Note 11, Supplemental Condensed Consolidating Financial Information, (“Note 11”) the Partnership recorded incorrect amounts for its individual cemetery and funeral home location-level equity and intercompany balances at its formation and in subsequent acquisitions. Additionally, the Partnership presented certain managed locations as guarantor subsidiaries instead of non-guarantor subsidiaries in Note 11. Note that this error had no impact to amounts presented on the face of the condensed consolidated financial statements.
E.
The Partnership incorrectly presented the changes in “Accounts receivable, net of allowance” net of the income statement “Provision for cancellations” and omitted certain disclosures regarding the components of the changes in “Accounts receivable, net of allowance” and “Deferred revenues” in its condensed consolidated statement of cash flows. Additionally, specific to the Partnership’s related disclosure in Note 2, Accounts Receivable, Net of Allowance, the Partnership presented activity in the allowance for cancellations that related to deferred revenues on a gross basis instead of on a net basis. The correction of the error resulted in a reclassification of $9.7 million in the condensed consolidated statement of cash flows between "Provision for cancellations" and "Accounts receivable, net of allowance" for the nine months ended September 30, 2016.
The effect of these adjustments on the Partnership’s unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2016 and the unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2016 is summarized below for each affected caption (in thousands, except per unit data):
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (unaudited)
 
 
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2016
 
Reference
 
As Filed
 
Restatement
Adjustments
 
As Restated
 
As Filed
 
Restatement
Adjustments
 
As Restated
Cemetery revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
Merchandise
A, B
 
$
36,314

 
$
1,815

 
$
38,129

 
$
106,937

 
$
3,302

 
$
110,239

Services
A
 
13,928

 
332

 
14,260

 
41,067

 
645

 
41,712

Investment and other
B
 
14,302

 
38

 
14,340

 
40,689

 
116

 
40,805

Funeral home revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
Merchandise
A
 
6,656

 
52

 
6,708

 
20,681

 
113

 
20,794

Total revenues
 
 
78,536

 
2,237

 
80,773

 
233,747

 
4,176

 
237,923

Selling expense
B
 
15,931

 
535

 
16,466

 
46,898

 
876

 
47,774

Funeral home expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
Services
B
 
6,070

 
6

 
6,076

 
18,672

 
15

 
18,687

Total costs and expenses
 
 
83,910

 
541

 
84,451

 
241,917

 
891

 
242,808

Net loss
 
 
(11,644
)
 
1,695

 
(9,949
)
 
(27,770
)
 
3,284

 
(24,486
)
General partner's interest for the period
 
 
(130
)
 
19

 
(111
)
 
2,043

 
38

 
2,081

Limited partners' interest for the period
 
 
(11,514
)
 
1,676

 
(9,838
)
 
(29,813
)
 
3,246

 
(26,567
)
Net loss per limited partner unit (basic and diluted)
 
 
$
(0.32
)
 
$
0.04

 
$
(0.28
)
 
$
(0.87
)
 
$
0.10

 
$
(0.77
)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
 
 
Nine Months Ended September 30, 2016
 
Reference
 
As Filed
 
Restatement
Adjustments
 
As Restated
Net loss
 
 
$
(27,770
)
 
$
3,284

 
$
(24,486
)
Provision for cancellations
E
 

 
9,732

 
9,732

Changes in assets and liabilities:
 
 
 
 
 
 
 
Accounts receivable, net of allowance
E
 
(9,167
)
 
(9,732
)
 
(18,899
)
Other assets
B, C
 
(6,270
)
 
1,721

 
(4,549
)
Deferred selling and obtaining costs
B
 
(10,716
)
 
897

 
(9,819
)
Deferred revenues
A, B
 
53,996

 
(4,175
)
 
49,821

Payables and other liabilities
C
 
11,034

 
(1,727
)
 
9,307

Net cash provided by operating activities
 
 
$
18,487

 
$

 
$
18,487


As shown above, the adjustments affecting the condensed consolidated statement of cash flows for the period noted 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.
Uses and Sources of Liquidity
Our primary use of liquidity is to fund working capital requirements of our businesses, capital expenditures and for general corporate purposes, including debt repayment and distributions. As more fully discussed in Note 7, the terms of the Partnership's senior credit facility, as amended, place certain restrictions on the Partnership’s ability to increase and make distributions and obtain additional debt. Finally, the Partnership has incurred net losses for the reporting periods in this Form 10-Q, and the Consolidated Leverage Ratio under the credit facility has been nearing the maximum allowed ratio under existing covenants as disclosed in Note 7.
During 2016 and 2017, the Partnership completed various financing transactions to provide supplemental liquidity necessary to achieve management’s strategic objectives, including issuance of common units, utilization of the at-the-market equity program and establishment of a new credit facility which, as discussed more fully in Note 7, was further amended during 2017. The Partnership acknowledges that it continues to face a challenging competitive environment, and while the Partnership continues to focus on its overall profitability, including managing expenses, the Partnership reported a loss for the three and nine months ended September 30, 2017. The Partnership expects that the actions taken in 2016 and 2017 will enhance its liquidity and financial flexibility. The Partnership will likely seek to continue to supplement cash generation with proceeds from financing activities, including borrowings under the credit facility and other borrowings, the issuance of additional limited partner units, capital contributions from the general partner and the sale of assets and other transactions. As of September 30, 2017, the Partnership had $3.0 million of total available borrowing capacity under its revolving credit facility.
If the Partnership continues to experience operating losses and is not able to generate additional liquidity through the mechanisms described above or through some combination of other actions, while not expected, the Partnership may be in breach of its covenants under the credit facility, and may not be able to access additional funds and the Partnership might need to secure additional sources of funds, which may or may not be available to the Partnership. Additionally, a failure to generate additional liquidity could negatively impact our access to inventory or services that are important to the operation of our business. Moreover, our ability to declare or pay future distributions may be impacted. Given the Partnership's current level of cash and cash equivalents, to preserve capital resources and liquidity, the Board of Directors of the General Partner has concluded that it is not in the best interest of unitholders to pay a second or third quarter 2017 distribution to unitholders. The Board expects to consider appropriate levels of distributions if and as conditions improve, but it is possible that we will not pay a distribution for several additional quarters.
Summary of Significant Accounting Policies
Refer to Note 1 to the Partnership's audited consolidated financial statements included in Item 8 of its Annual Report on Form 10-K for the year ended December 31, 2016 for the complete summary of significant accounting policies.
Use of Estimates
The preparation of the Partnership’s unaudited condensed 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 unaudited condensed consolidated financial statements, as well as the reported amounts of revenue and expense during the reporting periods. The Partnership’s unaudited condensed consolidated financial statements are based on a number of significant estimates, including revenue and expense accruals, depreciation and amortization, merchandise trust and perpetual care trust asset valuation, allowance for cancellations, unit-based compensation, deferred revenues, deferred merchandise trust investment earnings, deferred selling and obtaining costs, assets and liabilities obtained through business combinations, income taxes, hurricane-related losses and goodwill including quarterly assessment for impairment. As a result, actual results could differ from those estimates.
Assets Held for Sale
We classify our assets or entities as held for sale in the period in which all of the following criteria are met:
management, having the authority to approve the action, commits to a plan to sell the entity;
the entity is available for immediate sale in its present condition;
an active program to locate a buyer and other actions required to complete the plan to sell have been initiated;
the sale is probable and transfer is expected to be completed within one year;
the entity is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and
actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.
When the disposals of an entity or components of an entity that are classified as held for sale represent a strategic shift that has, or will have, a major effect on an entity's operations and financial results we account for such disposals as discontinued operations. Otherwise when the held for sale criteria is met but the disposal does not meet the criteria to be treated as discontinued operations, the assets or disposal group are reclassified from the corresponding balance sheet line items to held for sale. Assets classified as held for sale are carried at the lower of cost or market, with any gain or loss on sale recorded in "Other gains (losses), net" in the condensed consolidated statement of operations.
The Partnership classified certain assets of three cemeteries and three funeral homes as held for sale at September 30, 2017 and no assets at December 31, 2016. The contributions of revenues and earnings by these assets in 2017 were not material. Assets held for sale consisted of the following at the date indicated (in thousands):
 
September 30, 2017
Cemetery property
$
281

Buildings and improvements
718

Funeral home land
170

Assets held for sale
$
1,169


The Partnership recorded a loss on impairment of $1.0 million in "Other gains (losses), net" in the second quarter of 2017, given the net book value of the assets of two of these funeral home properties exceeded their estimated fair value.
In addition, for those assets that do not currently meet the classification as discontinued operations or held for sale but where, as a result of strategic discussions with third parties, information is identified that an asset may be impaired an interim assessment of impairment is performed to determine whether the carrying value is impaired. During the second quarter of 2017, the Partnership conducted an interim assessment with regards to certain assets held for use of two funeral homes with net book value of $0.9 million and recognized a loss on impairment of $0.4 million in "Other gains (losses), net" on the unaudited condensed consolidated statement of operations during the nine months ended September 30, 2017, resulting in an updated net book value of $0.5 million.
Goodwill
Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired. Goodwill is not amortized, but instead is subject to impairment testing on an annual basis, and between annual tests whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying amount. No such events have occurred during the nine months ended September 30, 2017. Goodwill totaled approximately $70.4 million as of both September 30, 2017 and December 31, 2016.
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 condensed 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.
The change in the deferred tax liability during the nine months ended September 30, 2017 was caused by an increase in deferred tax liabilities associated with long-lived intangibles that will reverse after the expiration of the existing deferred tax assets.
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):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
 
 
 
(As restated -
see above)
 
 
 
(As restated -
see above)
Net loss
$
(9,576
)
 
$
(9,949
)
 
$
(29,719
)
 
$
(24,486
)
Less: Incentive distribution right (“IDR”) payments to general partner

 

 

 
2,387

Net loss to allocate to general and common limited partners
(9,576
)
 
(9,949
)
 
(29,719
)
 
(26,873
)
Less: General partner’s interest excluding IDRs
(99
)
 
(111
)
 
(309
)
 
(306
)
Net loss attributable to common limited partners
$
(9,477
)
 
$
(9,838
)
 
$
(29,410
)
 
$
(26,567
)


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 option 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.
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):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Weighted average number of common limited partner units - basic and diluted (1)
37,958

 
35,470

 
37,945

 
34,287

_____________________________
(1)
The diluted weighted average number of limited partners’ units outstanding presented on the condensed consolidated statement of operations does not include 335 thousand units and 383 thousand units for the three months ended September 30, 2017 and 2016, respectively, and 328 thousand units and 375 thousand units for the nine months ended September 30, 2017 and 2016, respectively, as their effects would be anti-dilutive.
Recently Issued Accounting Standard Updates - Not Yet Effective
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU supersedes the revenue recognition requirements in FASB ASC 605, Revenue Recognition, and in most industry-specific topics. The new guidance identifies how and when entities should recognize revenue. The new rules establish a core principle requiring the recognition of revenue to depict the transfer of promised goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for such goods or services. In connection with this new standard, the FASB has issued several amendments to ASU 2014-09, as follows:
In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). This standard improves the implementation guidance on principal versus agent considerations and whether an entity reports revenue on a gross or net basis.
In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. This standard clarifies identifying performance obligations and the licensing implementation guidance.
In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. This standard provides additional guidance on (a) the objective of the collectability criterion, (b) the presentation of sales tax collected from customers, (c) the measurement date of non-cash consideration received, (d) practical expedients in respect of contract modifications and completed contracts at transition and (e) disclosure of the effects of the accounting change in the period of adoption.
In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which amends certain narrow aspects of the guidance, including the disclosure of remaining performance obligations and prior-period performance obligations, as well as other amendments to the guidance on loan guarantee fees, contract costs, refund liabilities, advertising costs and the clarification of certain examples.
In September 2017, the FASB issued ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments, which provides additional clarification and implementation guidance on ASU 2014-09 and is effective consistent with the adoption schedule for ASU 2014-09.
The new guidance in ASU 2014-09, as well as all amendments discussed above, is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The new guidance permits two methods of adoption, full retrospective or modified retrospective and we intend to implement the standard with the modified retrospective approach, which recognizes the cumulative effect of application recognized on that date. Management has developed an implementation plan and is continuing to evaluate the impact that the adoption of this guidance will have on the financial statements of the Partnership. Management continues to monitor modifications, clarifications and interpretations issued by the FASB. Management's implementation plan includes the following:
Establishing an ASC 606 steering committee comprised of various functions across the Partnership;
Performing the detailed review of customer contracts in scope of ASU 2014-09;
Assessing the potential impact that the guidance will have on our current accounting policies and practices; and
Evaluating the changes, if any, to our business processes, systems and controls necessary to support recognition and disclosure under the new guidance.
Management continues to make progress toward the adoption of the new standard but has not yet fully determined the impact of the new standard on our consolidated results of operations, financial position and cash flows. Management is currently assessing the timing of revenue recognition under the new standard, including the recognition of nonrefundable upfront fees. Management expects that there will be an impact to the financial reporting disclosures and internal control over financial reporting.
The Partnership will adopt the requirements of the new standard upon its effective date of January 1, 2018.
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.
In the first quarter of 2016, the FASB issued Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). The core principle of ASU 2016-02 is that all leases create an asset and a liability for lessees and recognition of those lease assets and lease liabilities represents an improvement over previous GAAP, which did not require lease assets and lease liabilities to be recognized for most leases. The amendment is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Partnership plans to adopt the requirements of ASU 2016-02 upon its effective date of January 1, 2019, and is evaluating the potential impact of the adoption on its financial position, results of operations and related disclosures.
In the second quarter of 2016, the FASB issued Update No. 2016-13, Credit Losses (Topic 326) (“ASU 2016-13”). The core principle of ASU 2016-13 is that all assets measured at amortized cost basis should be presented at the net amount expected to be collected using historical experience, current conditions and reasonable and supportable forecasts as a basis for credit loss estimates, instead of the probable initial recognition threshold used under current GAAP. The amendment is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. Early application is permitted. The Partnership plans to adopt the requirements of ASU 2016-13 upon its effective date of January 1, 2020, and is evaluating the potential impact of the adoption on its financial position, results of operations and related disclosures.
In the third quarter of 2016, the FASB issued Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The core principle of ASU 2016-15 is to provide cash flow statement classification guidance. The amendment is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted. The Partnership plans to adopt the requirements of ASU 2016-15 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.
In the fourth quarter of 2016, the FASB issued Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). The core principle of ASU 2016-18 is to provide guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. The amendment is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted. The Partnership plans to adopt the requirements of ASU 2016-18 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.
In the first quarter of 2017, the FASB issued Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Partnership is evaluating the potential impact of the adoption on its financial position, results of operations and related disclosures.
In the first quarter of 2017, the FASB also issued Update No. 2017-04, Intangibles-Goodwill and Other (Topic 350) (“ASU 2017-04”) to simplify the subsequent measurement of goodwill. ASU 2017-04 eliminates Step 2 from the goodwill impairment test. Instead, impairment is defined as the amount by which the carrying value of the reporting unit exceeds its fair value, up to the total amount of goodwill. The Partnership plans to adopt the requirements of ASU 2017-04 upon its effective date of January 1, 2020, and is evaluating the impact, if any, on its financial position, results of operations and related disclosures.
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE
2.
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE
Long-term accounts receivable, net, consisted of the following at the dates indicated (in thousands):
 
September 30, 2017
 
December 31, 2016
Customer receivables
$
223,861

 
$
223,326

Unearned finance income
(20,490
)
 
(21,034
)
Allowance for contract cancellations
(25,219
)
 
(26,153
)
Accounts receivable, net of allowance
178,152

 
176,139

Less: Current portion, net of allowance
77,058

 
77,253

Long-term portion, net of allowance
$
101,094

 
$
98,886


Activity in the allowance for contract cancellations was as follows (in thousands):
 
Nine Months Ended September 30,
 
2017
 
2016
 
 
 
(As restated -
see Note 1)
Balance, beginning of period
$
26,153

 
$
23,985

Provision for cancellations
5,123

 
9,732

Cancellations
(6,057
)
 
(5,515
)
Balance, end of period
$
25,219

 
$
28,202


As noted in Note 1, the Partnership has changed its presentation herein to focus only on the provision and cancellations of amounts recognized. The allowance for contract cancellations included $16.9 million and $17.4 million related to deferred revenues as of September 30, 2017 and December 31, 2016, respectively.
CEMETERY PROPERTY
CEMETERY PROPERTY
3.
CEMETERY PROPERTY
Cemetery property consisted of the following at the dates indicated (in thousands):
 
September 30, 2017
 
December 31, 2016
Cemetery land
$
256,120

 
$
257,914

Mausoleum crypts and lawn crypts
78,088

 
79,401

Cemetery property
$
334,208

 
$
337,315


Due to the hurricanes in Florida and Puerto Rico during September 2017, the Partnership has realized damages at certain locations of $0.5 million.
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT
4.
PROPERTY AND EQUIPMENT
Property and equipment consisted of the following at the dates indicated (in thousands):
 
September 30, 2017
 
December 31, 2016
Buildings and improvements
$
124,551

 
$
125,442

Furniture and equipment
57,170

 
56,408

Funeral home land
14,235

 
11,527

Property and equipment, gross
195,956

 
193,377

Less: Accumulated depreciation
(80,840
)
 
(75,096
)
Property and equipment, net of accumulated depreciation
$
115,116

 
$
118,281


Depreciation expense was $2.6 million and $2.3 million for the three months ended September 30, 2017 and 2016, respectively
MERCHANDISE TRUSTS
MERCHANDISE TRUSTS
5.
MERCHANDISE TRUSTS
At September 30, 2017 and December 31, 2016, 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.
All of these investments are classified as available for sale and, accordingly, all of the assets are carried at fair value. All of the investments subject to the fair value hierarchy are considered either Level 1 or Level 2 assets pursuant to the three-level hierarchy described in Note 10. There were no Level 3 assets.
The merchandise trusts are variable interest entities ("VIE") of which the Partnership is the primary beneficiary. The assets held in the merchandise trusts are required to be used to purchase the merchandise and provide the services to which they relate. If the value of these assets falls below the cost of purchasing such merchandise and providing such services, the Partnership may be required to fund this shortfall.
The Partnership included $8.9 million and $8.6 million of investments held in trust by the West Virginia Funeral Directors Association at September 30, 2017 and December 31, 2016, 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 nine months ended September 30, 2017 and 2016 is presented below (in thousands):
 
Nine Months Ended September 30,
 
2017
 
2016
Balance, beginning of period
$
507,079

 
$
464,676

Contributions
44,497

 
49,841

Distributions
(65,723
)
 
(49,168
)
Interest and dividends
18,252

 
17,657

Capital gain distributions
927

 
264

Realized gains and losses
14,192

 
3,727

Other than temporary impairment

 
(7,278
)
Taxes
(1,306
)
 
(1,721
)
Fees
(1,855
)
 
(2,234
)
Unrealized change in fair value
(3,882
)
 
28,840

Balance, end of period
$
512,181

 
$
504,604


During the nine months ended September 30, 2017 and 2016, purchases of available for sale securities were $298.7 million and $82.6 million, respectively, while sales, maturities and paydowns of available for sale securities were $297.2 million and $65.9 million, respectively. Cash flows from pre-need customer contracts are presented as operating cash flows in our condensed consolidated statement of cash flows.
The cost and market value associated with the assets held in the merchandise trusts as of September 30, 2017 and December 31, 2016 were as follows (in thousands):
September 30, 2017
Fair Value
Hierarchy Level
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Short-term investments
1
 
$
10,874

 
$

 
$

 
$
10,874

Fixed maturities:
 
 
 
 
 
 
 
 
 
U.S. governmental securities
2
 
206

 
1

 
(64
)
 
143

Corporate debt securities
2
 
2,308

 
141

 
(188
)
 
2,261

Total fixed maturities
 
 
2,514

 
142

 
(252
)
 
2,404

Mutual funds - debt securities
1
 
249,209

 
4,153

 
(426
)
 
252,936

Mutual funds - equity securities
1
 
81,029

 
3,412

 
(5,001
)
 
79,440

Other investment funds (1)
 
 
131,010

 
169

 
(353
)
 
130,826

Equity securities
1
 
15,712

 
2,720

 
(445
)
 
17,987

Other invested assets
2
 
8,797

 

 

 
8,797

Total investments
 
 
$
499,145

 
$
10,596

 
$
(6,477
)
 
$
503,264

West Virginia Trust Receivable
 
 
8,917

 

 

 
8,917

Total
 
 
$
508,062

 
$
10,596

 
$
(6,477
)
 
$
512,181

______________________________ 
(1)
Other investment funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the balance sheet. This asset class is composed of fixed income funds and equity funds, which have redemption periods ranging from 30 to 90 days, and private credit funds, which have lockup periods of seven years with two potential one year extensions at the discretion of the funds’ general partners. As of September 30, 2017, there were $32.4 million in unfunded commitments to the private credit funds, which are callable at any time.
December 31, 2016
Fair Value
Hierarchy Level
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Short-term investments
1
 
$
17,317

 
$

 
$

 
$
17,317

Fixed maturities:
 
 
 
 
 
 
 
 
 
U.S. governmental securities
2
 
172

 
2

 
(44
)
 
130

Corporate debt securities
2
 
6,311

 
269

 
(202
)
 
6,378

Total fixed maturities
 
 
6,483

 
271

 
(246
)
 
6,508

Mutual funds - debt securities
1
 
236,159

 
1,580

 
(96
)
 
237,643

Mutual funds - equity securities
1
 
126,215

 
3,361

 
(533
)
 
129,043

Other investment funds (1)
 
 
60,017

 
603

 
(387
)
 
60,233

Equity securities
1
 
35,079

 
3,640

 
(192
)
 
38,527

Other invested assets
2
 
9,239

 

 

 
9,239

Total investments
 
 
$
490,509

 
$
9,455

 
(1,454
)
 
$
498,510

West Virginia Trust Receivable
 
 
8,569

 

 

 
8,569

Total
 
 
$
499,078

 
$
9,455

 
$
(1,454
)
 
$
507,079

______________________________ 
(1)
Other investment funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the balance sheet. This asset class is composed of fixed income funds and equity funds, which have redemption periods ranging from 30 to 90 days.

The contractual maturities of debt securities as of September 30, 2017 were as follows (in thousands):
 
Less than
1 year
 
1 year through
5 years
 
6 years through
10 years
 
More than
10 years
U.S. governmental securities
$

 
$
88

 
$
55

 
$

Corporate debt securities
172

 
1,835

 
242

 
12

Total fixed maturities
$
172

 
$
1,923

 
$
297

 
$
12


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 as of September 30, 2017 and December 31, 2016 is presented below (in thousands):
 
Less than 12 months
 
12 months or more
 
Total
September 30, 2017
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. governmental securities
$

 
$

 
$
123

 
$
64

 
$
123

 
$
64

Corporate debt securities
68

 
1

 
454

 
187

 
522

 
188

Total fixed maturities
68

 
1

 
577

 
251

 
645

 
252

Mutual funds - debt securities
27,882

 
142

 
1,911

 
284

 
29,793

 
426

Mutual funds - equity securities
50,406

 
5,001

 

 

 
50,406

 
5,001

Other investment funds
60,896

 
353

 

 

 
60,896

 
353

Equity securities
3,460

 
418

 
467

 
27

 
3,927

 
445

Total
$
142,712

 
$
5,915

 
$
2,955

 
$
562

 
$
145,667

 
$
6,477

 
 
 
 
 
 
 
 
 
 
 
 
 
Less than 12 months
 
12 months or more
 
Total
December 31, 2016
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. governmental securities
$

 
$

 
$
87

 
$
44

 
$
87

 
$
44

Corporate debt securities
556

 
6

 
871

 
196

 
1,427

 
202

Total fixed maturities
556

 
6

 
958

 
240

 
1,514

 
246

Mutual funds - debt securities
6,040

 
61

 
754

 
35

 
6,794

 
96

Mutual funds - equity securities
7,475

 
357

 
2,578

 
176

 
10,053

 
533

Other investment funds
37,357

 
387

 

 

 
37,357

 
387

Equity securities
1,292

 
89

 
413

 
103

 
1,705

 
192

Total
$
52,720

 
$
900

 
$
4,703

 
$
554

 
$
57,423

 
$
1,454


Other-Than-Temporary Impairment of Trust Assets
On a quarterly basis, the Partnership assesses all securities in an unrealized loss position by evaluating the severity of the impairment, the length of time that each security has been in a loss position, changes in credit ratings and qualitative factors observed in the market. The Partnership has concluded that the assets currently suffering from a decline in fair value below the cost of the asset are temporary in nature. During the nine months ended September 30, 2017, the Partnership determined that there were no securities with impairment considered to be other-than-temporary.
During the nine months ended September 30, 2016, the Company determined that there were forty-eight securities with an aggregate cost basis of approximately $50.0 million and an aggregate fair value of approximately $42.7 million, resulting in an impairment of $7.3 million, wherein such impairment was 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 deferred revenue. This reduction in deferred revenue is reflected in earnings in periods after the impairment date as the underlying merchandise is delivered or the underlying services are performed.
PERPETUAL CARE TRUSTS
PERPETUAL CARE TRUSTS
6.
PERPETUAL CARE TRUSTS
At September 30, 2017 and December 31, 2016, 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.
All of these investments are classified as available for sale and, accordingly, all of the assets are carried at fair value. All of the investments subject to the fair value hierarchy are considered either Level 1 or Level 2 assets pursuant to the three-level hierarchy described in Note 10. There were no Level 3 assets. The perpetual care trusts are VIEs of which the Partnership is the primary beneficiary.
A reconciliation of the Partnership’s perpetual care trust activities for the three months ended September 30, 2017 and 2016 is presented below (in thousands):
 
Nine Months Ended September 30,
 
2017
 
2016
Balance, beginning of period
$
333,780

 
$
307,804

Contributions
7,156

 
13,111

Distributions
(13,449
)
 
(10,923
)
Interest and dividends
12,935

 
13,609

Capital gain distributions
403

 
477

Realized gains and losses
1,371

 
(413
)
Other than temporary impairment

 
(466
)
Taxes
(420
)
 
(566
)
Fees
(1,095
)
 
(2,189
)
Unrealized change in fair value
(2,070
)
 
14,479

Balance, end of period
$
338,611

 
$
334,923


During the nine months ended September 30, 2017 and 2016, purchases of available for sale securities were $82.8 million and $256.1 million, respectively, while sales, maturities and paydowns of available for sale securities were $68.7 million and $223.3 million, respectively. Cash flows from perpetual care trust related contracts are presented as operating cash flows in our condensed consolidated statement of cash flows.
The cost and market value associated with the assets held in the perpetual care trusts as of September 30, 2017 and December 31, 2016 were as follows (in thousands):
September 30, 2017
Fair Value
Hierarchy Level
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Short-term investments
1
 
$
9,195

 
$

 
$

 
$
9,195

Fixed maturities:
 
 
 
 
 
 
 
 

U.S. governmental securities
2
 
560

 
5

 
(40
)
 
525

Corporate debt securities
2
 
5,778

 
166

 
(147
)
 
5,797

Total fixed maturities
 
 
6,338

 
171

 
(187
)
 
6,322

Mutual funds - debt securities
1
 
156,057

 
3,318

 
(482
)
 
158,893

Mutual funds - equity securities
1
 
32,573

 
1,374

 
(1,470
)
 
32,477

Other investment funds (1)
 
 
107,563

 
2,697

 
(1,065
)
 
109,195

Equity securities
1
 
22,389

 
1,701

 
(1,707
)
 
22,383

Other invested assets
2
 
146

 

 

 
146

Total investments
 
 
$
334,261

 
$
9,261

 
$
(4,911
)
 
$
338,611

______________________________  
(1)
Other investment funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the balance sheet. This asset class is composed of fixed income funds and equity funds, which have a redemption period ranging from 30 to 90 days, and private credit funds, which have lockup periods ranging from five to ten years with three potential one year extensions at the discretion of the funds’ general partners. As of September 30, 2017, there were $78.2 million in unfunded commitments to the private credit funds, which are callable at any time.
December 31, 2016
Fair Value
Hierarchy Level
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Short-term investments
1
 
$
16,113

 
$

 
$

 
$
16,113

Fixed maturities:
 
 
 
 
 
 
 
 
 
U.S. governmental securities
2
 
483

 
14

 
(23
)
 
474

Corporate debt securities
2
 
12,598

 
380

 
(152
)
 
12,826

Total fixed maturities
 
 
13,081

 
394

 
(175
)
 
13,300

Mutual funds - debt securities
1
 
127,033

 
1,187

 
(669
)
 
127,551

Mutual funds - equity securities
1
 
30,708

 
1,940

 
(26
)
 
32,622

Other investment funds (1)

 
119,196

 
2,672

 
(622
)
 
121,246

Equity securities
1
 
20,978

 
2,150

 
(432
)
 
22,696

Other invested assets
2
 
252

 

 

 
252

Total investments
 
 
$
327,361

 
$
8,343

 
$
(1,924
)
 
$
333,780

______________________________  
(1)
Other investment funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the balance sheet. This asset class is composed of fixed income funds and equity funds, which have a redemption period ranging from 30 to 90 days, and private credit funds, which have lockup periods ranging from six to ten years with three potential one year extensions at the discretion of the funds’ general partners. As of December 31, 2016, there were $45.1 million in unfunded commitments to the private credit funds, which are callable at any time.
The contractual maturities of debt securities as of September 30, 2017 were as follows (in thousands):
 
Less than
1 year
 
1 year through
5 years
 
6 years through
10 years
 
More than
10 years
U.S. governmental securities
$
52

 
$
267

 
$
166

 
$
40

Corporate debt securities
843

 
4,514

 
340

 
100

Total fixed maturities
$
895

 
$
4,781

 
$
506

 
$
140


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 debt and equity securities within the perpetual care trusts as of September 30, 2017 and December 31, 2016 is presented below (in thousands):
 
Less than 12 months
 
12 months or more
 
Total
September 30, 2017
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. governmental securities
$

 
$

 
$
456

 
$
40

 
$
456

 
$
40

Corporate debt securities
659

 
12

 
1,640

 
135

 
2,299

 
147

Total fixed maturities
659

 
12

 
2,096

 
175

 
2,755

 
187

Mutual funds - debt securities
15,678

 
235

 
8,408

 
247

 
24,086

 
482

Mutual funds - equity securities
15,381

 
1,458

 
41

 
12

 
15,422

 
1,470

Other investment funds
56,165

 
1,065

 

 

 
56,165

 
1,065

Equity securities
9,238

 
1,686

 
37

 
21

 
9,275

 
1,707

Total
$
97,121

 
$
4,456

 
$
10,582

 
$
455

 
$
107,703

 
$
4,911

 
 
 
 
 
 
 
 
 
 
 
 
 
Less than 12 months
 
12 months or more
 
Total
December 31, 2016
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. governmental securities
$

 
$

 
$
283

 
$
23

 
$
283

 
$
23

Corporate debt securities
747

 
10

 
2,980

 
142

 
3,727

 
152

Total fixed maturities
747

 
10

 
3,263

 
165

 
4,010

 
175

Mutual funds - debt securities
24,026

 
620

 
1,908

 
49

 
25,934

 
669

Mutual funds - equity securities
3,836

 
16

 
452

 
10

 
4,288

 
26

Other investment funds
37,577

 
622

 

 

 
37,577

 
622

Equity securities
4,532

 
409

 
145

 
23

 
4,677

 
432

Total
$
70,718

 
$
1,677

 
$
5,768

 
$
247

 
$
76,486

 
$
1,924


Other-Than-Temporary Impairment of Trust Assets
On a quarterly basis, the Partnership assesses all securities in an unrealized loss position by evaluating the severity of the impairment, the length of time that each security has been in a loss position, changes in credit ratings and qualitative factors observed in the market.  The Partnership has concluded that the assets currently suffering from a decline in fair value below the cost of the asset are temporary in nature. During the nine months ended September 30, 2017, the Partnership determined that there were no securities with impairment considered to be other-than-temporary.
During the nine months ended September 30, 2016, the Company determined that there were eighteen securities with an aggregate cost basis of approximately $3.4 million and an aggregate fair value of approximately $2.9 million, resulting in an impairment of $0.5 million, wherein such impairment was 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 deferred revenue. This reduction in deferred revenue is reflected in earnings in periods after the impairment date as the underlying merchandise is delivered or the underlying services are performed.
LONG-TERM DEBT
LONG-TERM DEBT
7.
LONG-TERM DEBT
Total debt consisted of the following at the dates indicated (in thousands):
 
September 30, 2017
 
December 31, 2016
Credit facility
$
142,925

 
$
137,125

7.875% Senior Notes, due June 2021
172,975

 
172,623

Notes payable - acquisition debt
354

 
502

Notes payable - acquisition non-competes
395

 
928

Insurance and vehicle financing
1,488

 
1,807

Less deferred financing costs, net of accumulated amortization
(10,451
)
 
(10,859
)
Total debt
307,686

 
302,126

Less current maturities
(1,114
)
 
(1,775
)
Total long-term debt
$
306,572

 
$
300,351


Credit Facility
On August 4, 2016, StoneMor Operating LLC (the “Operating Company”), a 100% owned subsidiary of the Partnership, entered into the Credit Agreement (the “Credit Agreement”) among each of the Subsidiaries of the Operating Company (together with the Operating Company, “Borrowers”), the Lenders identified therein, Capital One, National Association (“Capital One”), as Administrative Agent, Issuing Bank and Swingline Lender, Citizens Bank of Pennsylvania, as Syndication Agent, and TD Bank, N.A. and Raymond James Bank, N.A., as Co-Documentation Agents. In addition, on the same date, the Partnership, the Borrowers and Capital One, as Administrative Agent, entered into the Guaranty and Collateral Agreement (the “Guaranty Agreement,” and together with the Credit Agreement, “New Agreements”). Capitalized terms which are not defined in the following description of the New Agreements shall have the meaning assigned to such terms in the New Agreements, as amended.
On March 15, 2017, the Borrowers, Capital One, as Administrative Agent and acting in accordance with the written consent of the Required Lenders, entered into the First Amendment to Credit Agreement (as so amended, the "Original Credit Agreement"). Those parties subsequently entered into a Second Amendment and Limited Waiver on July 26, 2017, a Third Amendment and Limited Waiver effective as of August 15, 2017 and a Fourth Amendment to Credit Agreement dated September 29, 2017. We refer to the Original Credit Agreement, as amended, as the "Amended Credit Agreement."
The Amended Credit Agreement provides for up to $200.0 million initial aggregate amount of Revolving Commitments, which may be increased, from time to time, in minimum increments of $5.0 million so long as the aggregate amount of such increases does not exceed $100.0 million. The Operating Company may also request the issuance of Letters of Credit for up to $15.0 million in the aggregate, of which there were $7.5 million outstanding at September 30, 2017 and $6.8 million outstanding at December 31, 2016. The Maturity Date under the Amended Credit Agreement is the earlier of (i) August 4, 2021 and (ii) the date that is six months prior to the earliest scheduled maturity date of any outstanding Permitted Unsecured Indebtedness (at present, such date is December 1, 2020, which is six months prior to June 1, 2021 maturity date of outstanding 7.875% senior notes).
As of September 30, 2017, the outstanding amount of borrowings under the Amended Credit Agreement was $142.9 million, which was used to pay down outstanding obligations under the Partnership's prior credit agreement, to pay fees, costs and expenses related to the New Agreements and to fund working capital needs. Generally, proceeds of the Loans under the Amended Credit Agreement can be used to finance the working capital needs and for other general corporate purposes of the Borrowers and Guarantors, including acquisitions and distributions permitted under the Amended Credit Agreement. As of September 30, 2017, the Partnership had $3.0 million of total available borrowing capacity under its revolving credit facility.
Each Borrowing under the Amended Credit Agreement is comprised of Base Rate Loans or Eurodollar Loans. The Loans comprising each Base Rate Borrowing (including each Swingline Loan) bear interest at the Base Rate plus the Applicable Rate, and the Loans comprising each Eurodollar Borrowing bear interest at the Eurodollar Rate plus the Applicable Rate.
The Applicable Rate is determined based on the Consolidated Leverage Ratio of the Partnership and its Subsidiaries and ranges from 1.75% to 3.75% for Eurodollar Rate Loans and 0.75% to 2.75% for Base Rate Loans. Based on our Consolidated Leverage Ratio for the compliance period ended September 30, 2017, the Applicable Rate for Eurodollar Rate Loans was 3.75% and for Base Rate Loans was 2.75%. The Amended Credit Agreement also requires the Borrowers to pay a quarterly unused commitment fee, which accrues at the Applicable Rate on the amount by which the commitments under the Amended Credit Agreement exceed the usage of such commitments, and which is included within interest expense on the Partnership’s condensed consolidated statements of operations. On September 30, 2017, the weighted average interest rate on outstanding borrowings under the Amended Credit Agreement was 5.1%.
The Amended Credit Agreement contains financial covenants, pursuant to which the Partnership will not permit:
the ratio of Consolidated Funded Indebtedness to Consolidated EBITDA, or the Consolidated Leverage Ratio, as of the last day of any fiscal quarter, commencing on September 30, 2016, determined for the period of four consecutive fiscal quarters ending on such date (the “Measurement Period”), to be greater than 4.50 to 1.0 for the periods ended September 30, 2017 and December 31, 2017, 4.25 to 1.0 for periods ending in 2018 and 4.00 to 1.0 for periods thereafter, which may be increased after January 1, 2019 to 4.50 to 1.0 (in case of a Designated Acquisition made subsequent to the last day of the immediately preceding fiscal quarter) as of the last day of the fiscal quarter in which such Designated Acquisition occurs and as of the last day of the immediately succeeding fiscal quarter;
the ratio of Consolidated EBITDA to Consolidated Debt Service, or the Consolidated Debt Service Coverage Ratio, as of the last day of any fiscal quarter, commencing on September 30, 2016 to be less than 2.50 to 1.0 for any Measurement Period; and
the ratio of Consolidated EBITDA (reduced by the amount of capital expenditures not financed with debt other than Revolving Commitments, taxes and restricted payments including distributions paid in cash) to Consolidated Fixed Charges, as of the last day of any fiscal quarter, commencing on December 31, 2017, to be less than 1.20 to 1.0 for any Measurement Period.
The Amended Credit Agreement prohibits the Partnership from increasing its regularly scheduled quarterly cash distributions otherwise permitted under the Amended Credit Agreement until January 1, 2018 unless at the time such distribution is declared and on a pro forma basis after giving effect to the payment of any such distribution the Consolidated Leverage Ratio is no greater than 3.75:1.00. Additional covenants include customary limitations, subject to certain exceptions, on, among others: (i) the incurrence of Indebtedness; (ii) granting of Liens; (iii) fundamental changes and dispositions; (iv) investments, loans, advances, guarantees and acquisitions; (v) swap agreements; (vi) transactions with Affiliates; (vii) Restricted Payments; and (viii) Sale and Leaseback Transactions.
The Borrowers’ obligations under the Amended Credit Agreement are guaranteed by the Partnership and the Borrowers. Pursuant to the Guaranty Agreement, the Borrowers’ obligations under the Amended Credit Agreement are secured by a first priority lien and security interest (subject to permitted liens and security interests) in substantially all of the Partnership’s and Borrowers’ assets, whether then owned or thereafter acquired, excluding certain excluded assets, which include, among others: (i) Trust Accounts, certain proceeds required by law to be placed into such Trust Accounts and funds held in such Trust Accounts; and (ii) Excluded Real Property, including owned and leased real property that may not be pledged as a matter of law.
On September 30, 2017, the Partnership’s Consolidated Leverage Ratio was 4.46 compared to a maximum allowable ratio of 4.50, and the Consolidated Debt Service Coverage Ratio was 2.99 compared to a minimum required ratio of 2.50. The Partnership was in compliance with the Amended Credit Agreement covenants as of September 30, 2017.
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 are being amortized over the life of the Senior Notes. The Senior Notes mature on June 1, 2021.
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
2017
103.938%
2018
101.969%
2019 and thereafter
100.000%

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 the Partnership’s subsidiaries. The Indenture governing the Senior Notes contains covenants, including limitations of the Partnership’s ability to incur certain 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, among other items. As of September 30, 2017, the Partnership was in compliance with these covenants.
DEFERRED REVENUES
DEFERRED REVENUES
8.
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 condensed consolidated balance sheet. The Partnership recognizes deferred direct costs associated with pre-need cemetery merchandise and service revenues as deferred selling and obtaining costs within long-term assets on its condensed 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.
Deferred revenues and related costs consisted of the following at the dates indicated (in thousands):
 
September 30, 2017
 
December 31, 2016
Deferred contract revenues
$
799,552

 
$
782,120

Deferred merchandise trust revenue
100,185

 
76,512

Deferred merchandise trust unrealized gains
4,116

 
8,001

Deferred revenues
$
903,853

 
$
866,633

Deferred selling and obtaining costs
$
124,137

 
$
116,890


Deferred revenues presented in the table above are net of the allowance for contract cancellations disclosed in Note 2.
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES
9.
COMMITMENTS AND CONTINGENCIES
Legal
The Partnership is currently subject to class or collective actions under the Securities Exchange Act of 1934 and for related state law claims that certain of our officers and directors breached their fiduciary duty to the Partnership and its unitholders. The Partnership could also become subject to additional claims and legal proceedings relating to the factual allegations made in these actions. While management cannot reasonably estimate the potential exposure in these matters at this time, if the Partnership does not prevail in any such proceedings, the Partnership could be required to pay substantial damages or settlement costs, subject to certain insurance coverages. Management has determined that, based on the status of the claims and legal proceedings against us, the amount of the potential losses cannot be reasonably estimated at this time. These actions are summarized below.
Anderson v. StoneMor Partners, LP, et al., No. 2:16-cv-06111, filed on November 21, 2016, in the United States District Court for the Eastern District of Pennsylvania. The plaintiffs in this case (as well as Klein v. StoneMor Partners, LP, et al., No. 2:16-cv-06275, filed in the United States District Court for the Eastern District of Pennsylvania on December 2, 2016, which has been consolidated with this case) brought an action on behalf of a putative class of the holders of Partnership units and allege that the Partnership made misrepresentations to investors in violation of Section 10(b) of the Securities Exchange Act of 1934 by, among other things and in general, failing to clearly disclose the use of proceeds from debt and equity offerings by making allegedly false or misleading statements concerning (a) the Partnership’s strength or health in connection with a particular quarter’s distribution announcement, (b) the connection between operations and distributions and (c) the Partnership’s use of cash from equity offerings and its credit facility. Lead plaintiffs have been appointed in this case, and filed a Consolidated Amended Class Action Complaint on April 24, 2017. Defendants filed a motion to dismiss that Consolidated Amended Complaint on June 8, 2017. See Note 15 for a discussion of the status of this motion. Plaintiffs seek damages from the Partnership and certain of its officers and directors on behalf of the class of Partnership unitholders, as well as costs and attorneys’ fees.
Bunim v. Miller, et al., No. 2:17-cv-00519-ER, pending in the United States District Court for the Eastern District of Pennsylvania, and filed on February 6, 2017. The plaintiff in this case brought, derivatively on behalf of the Partnership, claims that StoneMor GP’s officers and directors aided and abetted in breaches of StoneMor GP’s purported fiduciary duties by, among other things and in general, allegedly making misrepresentations through the use of non-GAAP accounting standards in its public filings, by allegedly failing to clearly disclose the use of proceeds from debt and equity offerings, and by allegedly approving unsustainable distributions. The plaintiff also claims that these actions and misrepresentations give rise to causes of action for gross mismanagement, unjust enrichment, and (in connection with a purportedly misleading proxy statement filed in 2014) violations of Section 14(a) of the Securities Exchange Act of 1934. The derivative plaintiff seeks an award of damages, attorneys’ fees and costs in favor of the Partnership as nominal plaintiff, as well as general compliance and governance changes. This case has been stayed, by the agreement of the parties, pending final resolution of the motion to dismiss filed in the Anderson case, provided that either side may terminate the stay on 30 days' notice. See Note 15 for a discussion of the status of this motion.
Muth v. StoneMor G.P. LLC, et al., December Term, 2016, No. 01196 and Binder v. StoneMor G.P. LLC, et al., January Term, 2017, No. 04872, both pending in the Court of Common Pleas for Philadelphia County, Pennsylvania, and filed on December 20, 2016 and February 3, 2017, respectively. In these cases, the plaintiffs brought, derivatively on behalf of the Partnership, claims that StoneMor GP’s officers and directors aided and abetted in breaches of StoneMor GP’s purported fiduciary duties by, among other things and in general, allegedly making misrepresentations through the use of non-GAAP accounting standards in its public filings and by failing to clearly disclose the use of proceeds from debt and equity offerings, as well as approving unsustainable distributions. The plaintiffs also claim that these actions and misrepresentations give rise to a cause of action for unjust enrichment. The derivative plaintiffs seek an award of damages, attorneys’ fees and costs in favor of the Partnership as nominal plaintiff, as well as alterations to the procedures for electing members to the board of StoneMor GP, and other compliance and governance changes. These cases have been consolidated and stayed, by the agreement of the parties, pending final resolution of the motion to dismiss filed in the Anderson case, provided that either side may terminate the stay on 30 days' notice. See Note 15 for a discussion of the status of this motion.
The Partnership has received two subpoenas from the Philadelphia Regional Office of the Securities and Exchange Commission, Enforcement Division, in connection with a fact-finding as to whether violations of federal securities laws have occurred. The subpoenas themselves state that the fact-finding should not be construed as an indication that any violations of securities laws occurred. The first subpoena, received on April 25, 2017, sought information from us relating to, among other things, our prior restatements, financial statements, internal control over financial reporting, public disclosures, use of non-GAAP financial measures and matters pertaining to unitholder distributions and the sources of funds therefor. The second subpoena, received on July 13, 2017, sought information relating to protection of our confidential information and our policies regarding insider trading. We are continuing to cooperate with the SEC staff, by providing information requested in the first subpoena, and we have delivered all information requested in the second, more limited, subpoena.
The Partnership is party to other legal proceedings in the ordinary course of its business but does not expect the outcome of any such proceedings, individually or in the aggregate, to have a material adverse effect on its financial position, results of operations or cash flows.  The Partnership carries insurance with coverage and coverage limits that it believes to be customary in the cemetery and funeral home industry. Although there can be no assurance that such insurance will be sufficient to protect the Partnership against all contingencies, management believes that the insurance protection is reasonable in view of the nature and scope of the operations.
Other
During the first quarter of 2016, the Partnership moved its corporate headquarters to Trevose, Pennsylvania. Due to the relocation, a cease-use expense of $2.4 million, of which $0.5 million was incurred in the first quarter of 2016 and $1.9 million was incurred in the third quarter of 2016, was recorded in “Other gains (losses), net” on the unaudited condensed consolidated statement of operations. This charge represents the net recognition of the discounted liability for future rent payments due under the lease on the previous headquarters, net of estimated sublease collections and deferred rent and lease incentives pertaining to the previous corporate office location.
In connection with the Partnership’s lease and management agreements with the Archdiocese of Philadelphia, it has committed to pay aggregate fixed rent of $36.0 million in the following amounts:
Lease Years 1-5 (May 28, 2014 - May 31, 2019)
None
Lease Years 6-20 (June 1, 2019 - May 31, 2034)
$1,000,000 per Lease Year
Lease Years 21-25 (June 1, 2034 - May 31, 2039)
$1,200,000 per Lease Year
Lease Years 26-35 (June 1, 2039 - May 31, 2049)
$1,500,000 per Lease Year
Lease Years 36-60 (June 1, 2049 - May 31, 2074)
None

The fixed rent for lease years 6 through 11, an aggregate of $6.0 million, is deferred. If, prior to May 31, 2024, the Archdiocese exercises its right in its sole discretion to terminate the agreements during lease year 11 or the Partnership terminates the agreements as a result of a default by the Archdiocese, the Partnership is entitled to retain the deferred fixed rent. If the agreements are not terminated, the deferred fixed rent will become due and payable on or before June 30, 2024.
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS
10.
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 and customer receivables on its condensed consolidated balance sheets are similar to cash basis 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 Notes 5 and 6). Where quoted prices are available in active markets, securities are classified as Level 1 investments pursuant to the fair value measurement hierarchy.
Where quoted market prices are not available for the specific security, fair values are estimated by using either quoted prices of securities with similar characteristics or an income approach fair value model with observable inputs that include a combination of interest rates, yield curves, credit risks, prepayment speeds, rating, and tax-exempt status. These securities are classified as Level 2 investments pursuant to the fair value measurement hierarchy. Certain investments in the merchandise and perpetual care trusts are excluded from the fair value leveling hierarchy in accordance with GAAP. These funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy.
The Partnership’s other financial instruments as of September 30, 2017 and December 31, 2016 consist of its Senior Notes and outstanding borrowings under its revolving credit facility (see Note 7). The estimated fair values of the Partnership’s Senior Notes as of September 30, 2017 and December 31, 2016 were $170.0 million and $168.0 million, respectively, based on trades made on those dates, compared with the carrying amounts of $173.0 million and $172.6 million, respectively. As of September 30, 2017 and December 31, 2016, the carrying values of outstanding borrowings under the Partnership’s revolving credit facility (see Note 7), which bears interest at variable interest rates with maturities of 90 days or less, approximated their estimated fair values. The Senior Notes and the credit facility are valued using Level 2 inputs.
The Partnership may be required to measure certain assets and liabilities at fair value on a nonrecurring basis in accordance with GAAP from time to time. These adjustments to fair value usually result from the application of lower of cost or fair value accounting on assets held for sale. The lower of cost or estimated fair value of assets held for sale was $1.2 million with an original net book value of $2.1 million prior to an adjustment of $0.9 million at June 30, 2017. Assets held for sale are valued at lower of cost or estimated fair value based on broker comps and estimates at the time the assets are classified as held for sale. These assets held for sale are classified as Level 3 pursuant to the fair value measurement hierarchy. In addition, the Partnership had $0.9 million of assets held for use that were impaired by $0.4 million during the second quarter of 2017, resulting in an updated net book value of $0.5 million.
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION
11.
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION
The Partnership’s Senior Notes are guaranteed by StoneMor Operating LLC and its 100% owned subsidiaries, other than the co-issuer, as described below. The guarantees are full, unconditional, joint and several. The Partnership, or the “Parent”, and its 100% owned subsidiary, Cornerstone Family Services of West Virginia Subsidiary Inc., are the co-issuers of the Senior Notes. The Partnership’s unaudited condensed consolidated financial statements as of September 30, 2017 and December 31, 2016 and for the three months ended September 30, 2017 and 2016 include the accounts of cemeteries owned by other entities but which we operate under long-term lease, operating or management agreements. For the purposes of this note, these entities are deemed non-guarantor subsidiaries, as they are not 100% owned by the Partnership. The Partnership’s unaudited condensed consolidated financial statements also contain merchandise and perpetual care trusts that are also non-guarantor subsidiaries for the purposes of this note.
The following unaudited 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 September 30, 2017 and December 31, 2016 and for the three and nine months ended September 30, 2017 and 2016. For the purpose of the following financial information, the Partnership’s investments in its subsidiaries and the guarantor subsidiaries’ investments in their respective subsidiaries are presented in accordance with the equity method of accounting:
CONDENSED CONSOLIDATING BALANCE SHEETS (Unaudited, in thousands)
September 30, 2017
Parent
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$

 
$
5,614

 
$
2,846

 
$

 
$
8,460

Assets held for sale

 

 
1,169

 

 

 
1,169

Other current assets

 
3,877

 
88,438

 
17,216

 

 
109,531

Total current assets

 
3,877

 
95,221

 
20,062

 

 
119,160

Long-term accounts receivable

 
2,062

 
85,867

 
13,165

 

 
101,094

Cemetery property and equipment

 
790

 
413,445

 
35,089

 

 
449,324

Merchandise trusts

 

 

 
512,181

 

 
512,181

Perpetual care trusts

 

 

 
338,611

 

 
338,611

Deferred selling and obtaining costs

 
6,055

 
96,891

 
21,191

 

 
124,137

Goodwill and intangible assets

 

 
72,129

 
62,047

 

 
134,176

Other assets

 

 
17,873

 
2,798

 

 
20,671

Investments in and amounts due from affiliates eliminated upon consolidation
204,948

 
122,924

 
559,338

 

 
(887,210
)
 

Total assets
$
204,948

 
$
135,708

 
$
1,340,764

 
$
1,005,144

 
$
(887,210
)
 
$
1,799,354

Liabilities and Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
$

 
$
113

 
$
52,046

 
$
1,271

 
$

 
$
53,430

Long-term debt, net of deferred financing costs
68,202

 
104,774

 
133,596

 

 

 
306,572

Deferred revenues

 
33,588

 
766,644

 
103,621

 

 
903,853

Perpetual care trust corpus

 

 

 
338,611

 

 
338,611

Other long-term liabilities

 

 
46,252

 
13,890

 

 
60,142

Due to affiliates

 

 
172,976

 
574,984

 
(747,960
)
 

Total liabilities
68,202

 
138,475

 
1,171,514

 
1,032,377

 
(747,960
)
 
1,662,608

Partners' capital
136,746

 
(2,767
)
 
169,250

 
(27,233
)
 
(139,250
)
 
136,746

Total liabilities and partners' capital
$
204,948

 
$
135,708

 
$
1,340,764

 
$
1,005,144

 
$
(887,210
)
 
$
1,799,354















CONDENSED CONSOLIDATING BALANCE SHEETS (in thousands)
December 31, 2016
Parent
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$

 
$
9,145

 
$
3,425

 
$

 
$
12,570

Other current assets

 
4,567

 
83,765

 
17,919

 

 
106,251

Total current assets

 
4,567

 
92,910

 
21,344

 

 
118,821

Long-term accounts receivable

 
1,725

 
83,993

 
13,168

 

 
98,886

Cemetery property and equipment

 
930

 
420,077

 
34,589

 

 
455,596

Merchandise trusts

 

 

 
507,079

 

 
507,079

Perpetual care trusts

 

 

 
333,780

 

 
333,780

Deferred selling and obtaining costs

 
5,668

 
91,252

 
19,970

 

 
116,890

Goodwill and intangible assets

 

 
72,963

 
62,911

 

 
135,874

Other assets

 

 
17,244

 
2,843

 

 
20,087

Investments in and amounts due from affiliates eliminated upon consolidation
258,417

 
182,060

 
557,455

 

 
(997,932
)
 

Total assets
$
258,417

 
$
194,950

 
$
1,335,894

 
$
995,684

 
$
(997,932
)
 
$
1,787,013

Liabilities and Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
$

 
$
320

 
$
38,336

 
$
237

 
$

 
$
38,893

Long-term debt, net of deferred financing costs
68,063

 
104,560

 
127,728

 

 

 
300,351

Deferred revenues

 
30,321

 
738,184

 
98,128

 

 
866,633

Perpetual care trust corpus

 

 

 
333,780

 

 
333,780

Other long-term liabilities

 

 
45,802

 
11,200

 

 
57,002

Due to affiliates

 

 
172,623

 
581,427

 
(754,050
)
 

Total liabilities
68,063

 
135,201

 
1,122,673

 
1,024,772

 
(754,050
)
 
1,596,659

Partners’ capital
190,354

 
59,749

 
213,221

 
(29,088
)
 
(243,882
)
 
190,354

Total liabilities and partners’ capital
$
258,417

 
$
194,950

 
$
1,335,894

 
$
995,684

 
$
(997,932
)
 
$
1,787,013


CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Unaudited, in thousands)
Three Months Ended September 30, 2017
Parent
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Total revenues
$

 
$
1,842

 
$
69,423

 
$
14,648

 
$
(1,879
)
 
$
84,034

Total costs and expenses

 
(2,883
)
 
(71,234
)
 
(14,144
)
 
1,879

 
(86,382
)
Other gains, net

 

 
338

 

 

 
338

Net loss from equity investment in subsidiaries
(8,218
)
 
(8,674
)
 

 

 
16,892

 

Interest expense
(1,358
)
 
(2,087
)
 
(3,264
)
 
(235
)
 

 
(6,944
)
Net income (loss) before income taxes
(9,576
)
 
(11,802
)
 
(4,737
)
 
269

 
16,892

 
(8,954
)
Income tax expense

 

 
(622
)
 

 

 
(622
)
Net income (loss)
$
(9,576
)
 
$
(11,802
)
 
$
(5,359
)
 
$
269

 
$
16,892

 
$
(9,576
)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2016 (As restated, see A)
Parent
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
 
 
 
 
B
 
B
 
 
 
 
Total revenues
$

 
$
2,312

 
$
69,293

 
$
13,624

 
$
(4,456
)
 
$
80,773

Total costs and expenses

 
(3,098
)
 
(69,725
)
 
(16,084
)
 
4,456

 
(84,451
)
Other losses, net

 

 
(506
)
 

 

 
(506
)
Net loss from equity investment in subsidiaries
(8,591
)
 
(7,658
)
 

 

 
16,249

 

Interest expense
(1,358
)
 
(2,087
)
 
(2,295
)
 
(194
)
 

 
(5,934
)
Net loss before income taxes
(9,949
)
 
(10,531
)
 
(3,233
)
 
(2,654
)
 
16,249

 
(10,118
)
Income tax benefit

 

 
169

 

 

 
169

Net loss
$
(9,949
)
 
$
(10,531
)
 
$
(3,064
)
 
$
(2,654
)
 
$
16,249

 
$
(9,949
)
A.
See Note 1 for a summary of those accounting adjustments and the impact on the unaudited condensed consolidated financial statements for the three months ended September 30, 2016.
B.
The Partnership incorrectly presented the accounts of certain cemeteries owned by other entities but which we operate under long-term lease, operating or management agreements, as guarantor subsidiaries instead of non-guarantor subsidiaries. The adjustments to correctly present these cemeteries as non-guarantor subsidiaries resulted in a $1.4 million increase in non-guarantor revenues and a $1.4 million increase in non-guarantor costs and expenses and corresponding reductions to guarantor revenues and costs and expenses for the three months ended September 30, 2016.
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Unaudited, in thousands)
Nine Months Ended September 30, 2017
Parent
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Total revenues
$

 
$
5,381

 
$
209,331

 
$
44,785

 
$
(6,565
)
 
$
252,932

Total costs and expenses

 
(10,090
)
 
(214,855
)
 
(41,062
)
 
6,565

 
(259,442
)
Other losses, net

 

 
(733
)
 

 

 
(733
)
Net loss from equity investment in subsidiaries
(25,644
)
 
(27,135
)
 

 

 
52,779

 

Interest expense
(4,075
)
 
(6,261
)
 
(9,366
)
 
(689
)
 

 
(20,391
)
Net income (loss) before income taxes
(29,719
)
 
(38,105
)
 
(15,623
)
 
3,034

 
52,779

 
(27,634
)
Income tax expense

 

 
(2,085
)
 

 

 
(2,085
)
Net income (loss)
$
(29,719
)
 
$
(38,105
)
 
$
(17,708
)
 
$
3,034

 
$
52,779

 
$
(29,719
)
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2016 (As restated, see A)
Parent
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
 
 
 
 
B
 
B
 
 
 
 
Total revenues
$

 
$
5,279

 
$
199,458

 
$
42,374

 
$
(9,188
)
 
$
237,923

Total costs and expenses

 
(8,212
)
 
(201,512
)
 
(42,272
)
 
9,188

 
(242,808
)
Other losses, net

 

 
(1,579
)
 

 

 
(1,579
)
Net loss from equity investment in subsidiaries
(20,411
)
 
(21,639
)
 

 

 
42,050

 

Interest expense
(4,075
)
 
(6,261
)
 
(6,515
)
 
(580
)
 

 
(17,431
)
Net loss before income taxes
(24,486
)
 
(30,833
)
 
(10,148
)
 
(478
)
 
42,050

 
(23,895
)
Income tax benefit

 

 
(591
)
 

 

 
(591
)
Net loss
$
(24,486
)
 
$
(30,833
)
 
$
(10,739
)
 
$
(478
)
 
$
42,050

 
$
(24,486
)
A.
See Note 1 for a summary of those accounting adjustments and the impact on the unaudited condensed consolidated financial statements for the nine months ended September 30, 2016.
B.
The Partnership incorrectly presented the accounts of certain cemeteries owned by other entities but which we operate under long-term lease, operating or management agreements, as guarantor subsidiaries instead of non-guarantor subsidiaries. The adjustments to correctly present these cemeteries as non-guarantor subsidiaries resulted in a $3.6 million increase in non-guarantor revenues and a $3.4 million increase in non-guarantor costs and expenses and corresponding reductions to guarantor revenues and costs and expenses for the nine months ended September 30, 2016.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Unaudited, in thousands)
Nine Months Ended September 30, 2017
Parent
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by operating activities
$
24,545

 
$
57

 
$
34,863

 
$
117

 
$
(34,881
)
 
$
24,701

Cash Flows From Investing Activities:
 
 
 
 
 
 
 
 
 
 
 
Cash paid for acquisitions and capital expenditures, net of proceeds from divestitures and asset sales

 
(57
)
 
(6,105
)
 
(696
)
 

 
(6,858
)
Net cash used in investing activities

 
(57
)
 
(6,105
)
 
(696
)
 

 
(6,858
)
Cash Flows From Financing Activities:
 
 
 
 
 
 
 
 
 
 
 
Cash distributions
(24,545
)
 

 

 

 

 
(24,545
)
Payments to affiliates

 

 
(34,881
)
 

 
34,881

 

Net borrowings and repayments of debt

 

 
4,165

 

 

 
4,165

Other financing activities

 

 
(1,573
)
 

 

 
(1,573
)
Net cash provided by (used in) financing activities
(24,545
)
 

 
(32,289
)
 

 
34,881

 
(21,953
)
Net increase (decrease) in cash and cash equivalents

 

 
(3,531
)
 
(579
)
 

 
(4,110
)
Cash and cash equivalents - Beginning of period

 

 
9,145

 
3,425

 

 
12,570

Cash and cash equivalents - End of period
$

 
$

 
$
5,614

 
$
2,846

 
$

 
$
8,460

 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2016 (As restated, see A)
Parent
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
 
 
 
 
B
 
B
 
 
 
 
Net cash provided by operating activities
$
2,624

 
$
86

 
$
26,260

 
$
2,477

 
$
(12,960
)
 
$
18,487

Cash Flows From Investing Activities:
 
 
 
 
 
 
 
 
 
 
 
Cash paid for acquisitions and capital expenditures, net of proceeds from asset sales

 
(86
)
 
(15,819
)
 
(2,404
)
 

 
(18,309
)
Payments to affiliates
(9,097
)
 

 

 

 
9,097

 

Net cash used in investing activities
(9,097
)
 
(86
)
 
(15,819
)
 
(2,404
)
 
9,097

 
(18,309
)
Cash Flows From Financing Activities:
 
 
 
 
 
 
 
 
 
 
 
Cash distributions
(68,062
)
 

 

 

 

 
(68,062
)
Payments to affiliates

 

 
(3,863
)
 

 
3,863

 

Net borrowings and repayments of debt

 

 
168

 

 

 
168

Proceeds from issuance of common units
74,535

 

 

 

 

 
74,535

Other financing activities

 

 
(6,362
)
 

 

 
(6,362
)
Net cash provided by (used in) financing activities
6,473

 

 
(10,057
)
 

 
3,863

 
279

Net increase (decrease) in cash and cash equivalents

 

 
384

 
73

 

 
457

Cash and cash equivalents - Beginning of period

 

 
11,801

 
3,352

 

 
15,153

Cash and cash equivalents - End of period
$

 
$

 
$
12,185

 
$
3,425

 
$

 
$
15,610

A.
See Note 1 for a summary of those accounting adjustments and the impact on the unaudited condensed consolidated financial statements for the nine months ended September 30, 2016.
B.
The Partnership incorrectly presented the accounts of certain cemeteries owned by other entities but which we operate under long-term lease, operating or management agreements, as guarantor subsidiaries instead of non-guarantor subsidiaries. The adjustments to correctly present these cemeteries as non-guarantor subsidiaries resulted in a $0.9 million increase in non-guarantor cash provided by operating activities, with a corresponding decrease in guarantor cash provided by operating activities for the nine months ended September 30, 2016.
ISSUANCES OF LIMITED PARTNER UNITS
ISSUANCES OF LIMITED PARTNER UNITS
12.
ISSUANCES OF LIMITED PARTNERSHIP UNITS
Pursuant to a Common Unit Purchase Agreement, dated May 19, 2014, by and between the Partnership and American Cemeteries Infrastructure Investors, LLC, a Delaware limited liability company (“ACII”), the Partnership did not issue any paid-in-kind units to ACII during the three months ended September 30, 2017. The Partnership issued 78,342 paid-in-kind units to ACII in lieu of cash distributions of $0.7 million during the nine months ended September 30, 2017.
SEGMENT INFORMATION
SEGMENT INFORMATION
13.
SEGMENT INFORMATION
The Partnership’s operations include two reportable operating segments, Cemetery Operations and Funeral Home Operations. These operating segments reflect the way the Partnership managed its operations and made business decisions as of September 30, 2017. Operating segment data for and as of the periods indicated were as follows (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
STATEMENT OF OPERATIONS DATA:
 
 
(As restated -
see Note 1)
 
 
 
(As restated -
see Note 1)
Cemetery Operations:
 
 
 
 
 
 
 
Revenues
$
69,543

 
$
66,729

 
$
205,816

 
$
192,756

Operating costs and expenses
(58,728
)
 
(57,635
)
 
(172,903
)
 
(163,243
)
Depreciation and amortization
(2,175
)
 
(2,058
)
 
(6,734
)
 
(6,042
)
Segment income
$
8,640

 
$
7,036

 
$
26,179

 
$
23,471

Funeral Home Operations:
 
 
 
 
 
 
 
Revenues
$
14,491

 
$
14,044

 
$
47,116

 
$
45,167

Operating costs and expenses
(12,581
)
 
(13,831
)
 
(37,449
)
 
(40,312
)
Depreciation and amortization
(753
)
 
(692
)
 
(2,369
)
 
(2,427
)
Segment income (loss)
$
1,157

 
$
(479
)
 
$
7,298

 
$
2,428

Reconciliation of segment income to net loss:
 
 
 
 
 
 
 
Cemetery Operations
$
8,640

 
$
7,036

 
$
26,179

 
$
23,471

Funeral Home Operations
1,157

 
(479
)
 
7,298

 
2,428

Total segment income
9,797

 
6,557

 
33,477

 
25,899

Corporate overhead
(11,887
)
 
(10,058
)
 
(39,058
)
 
(30,106
)
Corporate depreciation and amortization
(258
)
 
(177
)
 
(929
)
 
(678
)
Other gains (losses), net
338

 
(506
)
 
(733
)
 
(1,579
)
Interest expense
(6,944
)
 
(5,934
)
 
(20,391
)
 
(17,431
)
Income tax benefit (expense)
(622
)
 
169

 
(2,085
)
 
(591
)
Net loss
$
(9,576
)
 
$
(9,949
)
 
$
(29,719
)
 
$
(24,486
)
 
 
 
 
 
 
 
 
CASH FLOW DATA:
 
 
 
 
 
 
 
Capital expenditures:
 
 
 
 
 
 
 
Cemetery Operations
$
4,525

 
$
1,696

 
$
7,501

 
$
6,328

Funeral Home Operations
76

 
305

 
203

 
800

Corporate
48

 
150

 
256

 
2,527

Total capital expenditures
$
4,649

 
$
2,151

 
$
7,960

 
$
9,655

 
 
 
 
 
 
 
 
BALANCE SHEET DATA:
September 30, 2017
 
December 31, 2016
 
 
 
 
Assets:
 
 
 
 
 
 
 
Cemetery Operations
$
1,585,369

 
$
1,573,494

 
 
 
 
Funeral Home Operations
200,626

 
198,200

 
 
 
 
Corporate
13,359

 
15,319

 
 
 
 
Total assets
$
1,799,354

 
$
1,787,013

 
 
 
 
Goodwill:
 
 
 
 
 
 
 
Cemetery Operations
$
24,862

 
$
24,862

 
 
 
 
Funeral Home Operations
45,574

 
45,574

 
 
 
 
Total goodwill
$
70,436

 
$
70,436

 
 
 
 
SUPPLEMENTAL CONDENSED CONSOLIDATED CASH FLOW INFORMATION
SUPPLEMENTAL CONDENSED CONSOLIDATED CASH FLOW INFORMATION
14.
SUPPLEMENTAL CONDENSED CONSOLIDATING CASH FLOW INFORMATION
The tables presented below provide supplemental information to the condensed consolidated statements of cash flows regarding contract origination and maturity activity included in the pertinent captions on the Partnership's condensed consolidated statements of cash flows (in thousands):
 
Nine Months Ended September 30,
 
2017
 
2016
Pre-need/at-need contract originations (sales on credit)
$
(78,419
)
 
$
(88,502
)
Cash receipts from sales on credit (post-origination)
69,843

 
69,603

Changes in Accounts receivable, net of allowance
$
(8,576
)
 
$
(18,899
)
 
 
 
 
Deferrals:
 
 
 
Cash receipts from customer deposits at origination, net of refunds
$
113,177

 
$
114,215

Withdrawals of realized income from merchandise trusts during the period
10,592

 
10,114

Pre-need/at-need contract originations (sales on credit)
78,419

 
88,502

Undistributed merchandise trust investment earnings (losses), net
(32,299
)
 
8,034

Recognition:
 
 
 
Merchandise trust investment income, net withdrawn as of end of period
(7,851
)
 
(4,203
)
Recognized maturities of customer contracts collected as of end of period
(148,630
)
 
(138,999
)
Recognized maturities of customer contracts uncollected as of end of period
(25,527
)
 
(27,842
)
Changes in Deferred revenues
$
(12,119
)
 
$
49,821

SUBSEQUENT EVENTS
SUBSEQUENT EVENTS
15.
SUBSEQUENT EVENTS
On October 31, 2017, the court granted defendants' motion to dismiss the Consolidated Amended Complaint in the Anderson case discussed in Note 9. The court entered judgment dismissing the case on November 30, 2017. Plaintiffs filed a notice of appeal on December 29, 2017. This case is now pending in the United States Court of Appeals for the Third Circuit.
The Tax Cuts and Jobs Act of 2017 (the "Act") was recently passed by the United States Congress and signed into law in December 2017. The Partnership is currently evaluating the impact of the Act on the tax positions of the Partnership and its taxable subsidiaries, including the remeasurement of its deferred tax assets and liabilities related to indefinite lived intangible assets and merchandise trust liabilities. Because a change in tax law is accounted for in the period of enactment, the effect of the Act will be recorded in the fourth quarter of 2017.
On January 19, 2018, the Partnership acquired six cemetery properties in Wisconsin and their related assets, net of certain assumed liabilities, for cash consideration of $2.5 million, of which $0.8 million was paid at closing. These properties have been managed by the Partnership since August 2016. The Partnership will account for this transaction under the acquisition method of accounting in the first quarter of 2018. The Partnership is currently evaluating the information necessary to assess the fair value of net assets acquired and make a purchase price allocation.
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 September 30, 2017, the Partnership operated 316 cemeteries in 27 states and Puerto Rico, of which 285 are owned and 31 are operated under lease, management or operating agreements. The Partnership also owned and operated 97 funeral homes, including 45 located on the grounds of cemetery properties that we own, in 18 states and Puerto Rico.
Principles of Consolidation
The unaudited condensed consolidated financial statements include the accounts of each of the Partnership’s 100% 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. 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 customer contract related performance obligations that it assumed as part of these agreements.
Basis of Presentation
The accompanying condensed consolidated financial statements, which are unaudited except for the balance sheet at December 31, 2016, which is derived from audited financial statements, have been prepared in accordance with the requirements of Form 10-Q and accounting principles generally accepted in the United States (“GAAP”) for interim reporting. They do not include all disclosures normally made in financial statements contained in Form 10-K. In management’s opinion, all adjustments necessary for a fair presentation of the Partnership’s financial position, results of operations and cash flows for the periods disclosed have been made. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto presented in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2016. The results of operations for the three and nine months ended September 30, 2017 may not necessarily be indicative of the results of operations for the full year ended December 31, 2017.
Principles of Consolidation
The unaudited condensed consolidated financial statements include the accounts of each of the Partnership’s 100% 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. 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 customer contract related performance obligations that it assumed as part of these agreements.

Restatement of Previously Issued Unaudited Condensed Consolidated Financial Statements
On September 18, 2017, the Partnership filed its Annual Report on Form 10-K for the year ended December 31, 2016, which amended the Partnership's audited consolidated financial statements as of December 31, 2015, and for each of the two years in the period ended December 31, 2015 and the related notes thereto. This Form 10-Q amends the Partnership’s unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2016 and the related notes thereto, included on Form 10-Q filed on November 9, 2016 ("Original Filing"). The Restatement reflects the correction of the following errors identified subsequent to the Original Filing:
A.
The Partnership understated recognized revenues from the satisfaction of cemetery and funeral home performance obligations in its condensed consolidated statement of operations. The understatement was primarily due to lags in or omissions of the data entry of a contract servicing event. The adjustments to correct these accounting errors resulted in a net increase of $2.2 million in revenues for the three months ended September 30, 2016, of which $1.9 million related to merchandise revenues, and a net increase of $4.1 million in revenues for the nine months ended September 30, 2016, of which $3.5 million related to merchandise revenues.
B.
In conjunction with the foregoing revenue recognition errors, on its condensed consolidated balance sheet, the Partnership had historically (i) deferred incorrect and imprecise amounts of investment revenues and expenses related to its merchandise trusts, (ii) reserved incorrect amounts for future cancellations related to its cemetery and funeral home performance obligations, and (iii) deferred incorrect amounts of selling costs. The correction of these accounting errors resulted in a net increase in "Selling expense" of $0.5 million for the three months ended September 30, 2016. The correction of these accounting errors resulted in a net increase in “Cemetery investment and other revenues” of $0.1 million for the nine months ended September 30, 2016 due to changes in the inputs used to calculate trust income recognition. This also resulted in a decrease in “Cemetery merchandise revenues” of $0.1 million for the nine months ended September 30, 2016 due to an increase in cancellation reserve expense and an increase in “Selling expense” of $0.9 million for that period.
C.
Certain components of “Other current assets” and “Accounts payable and accrued liabilities” on its condensed consolidated balance sheet were determined to be inappropriate in the Partnership’s review of accounting policies during its ongoing remediation. The Partnership had historically presented intercompany deposits due to its merchandise and perpetual care trust funds within “Other current assets” and presented intercompany payables to its merchandise and perpetual care trusts in “Accounts payable and accrued liabilities”. The Partnership has determined the intercompany payables and liabilities to its consolidated trust funds should be eliminated. The correction of the error resulted in a reclassification of $1.7 million in the condensed consolidated statements of cash flows between "Other assets" and "Payables and other liabilities" for the nine months ended September 30, 2016.
D.
Specific to the Partnership’s disclosure in Note 11, Supplemental Condensed Consolidating Financial Information, (“Note 11”) the Partnership recorded incorrect amounts for its individual cemetery and funeral home location-level equity and intercompany balances at its formation and in subsequent acquisitions. Additionally, the Partnership presented certain managed locations as guarantor subsidiaries instead of non-guarantor subsidiaries in Note 11. Note that this error had no impact to amounts presented on the face of the condensed consolidated financial statements.
E.
The Partnership incorrectly presented the changes in “Accounts receivable, net of allowance” net of the income statement “Provision for cancellations” and omitted certain disclosures regarding the components of the changes in “Accounts receivable, net of allowance” and “Deferred revenues” in its condensed consolidated statement of cash flows. Additionally, specific to the Partnership’s related disclosure in Note 2, Accounts Receivable, Net of Allowance, the Partnership presented activity in the allowance for cancellations that related to deferred revenues on a gross basis instead of on a net basis. The correction of the error resulted in a reclassification of $9.7 million in the condensed consolidated statement of cash flows between "Provision for cancellations" and "Accounts receivable, net of allowance" for the nine months ended September 30, 2016.
The effect of these adjustments on the Partnership’s unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2016 and the unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2016 is summarized below for each affected caption (in thousands, except per unit data):
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (unaudited)
 
 
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2016
 
Reference
 
As Filed
 
Restatement
Adjustments
 
As Restated
 
As Filed
 
Restatement
Adjustments
 
As Restated
Cemetery revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
Merchandise
A, B
 
$
36,314

 
$
1,815

 
$
38,129

 
$
106,937

 
$
3,302

 
$
110,239

Services
A
 
13,928

 
332

 
14,260

 
41,067

 
645

 
41,712

Investment and other
B
 
14,302

 
38

 
14,340

 
40,689

 
116

 
40,805

Funeral home revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
Merchandise
A
 
6,656

 
52

 
6,708

 
20,681

 
113

 
20,794

Total revenues
 
 
78,536

 
2,237

 
80,773

 
233,747

 
4,176

 
237,923

Selling expense
B
 
15,931

 
535

 
16,466

 
46,898

 
876

 
47,774

Funeral home expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
Services
B
 
6,070

 
6

 
6,076

 
18,672

 
15

 
18,687

Total costs and expenses
 
 
83,910

 
541

 
84,451

 
241,917

 
891

 
242,808

Net loss
 
 
(11,644
)
 
1,695

 
(9,949
)
 
(27,770
)
 
3,284

 
(24,486
)
General partner's interest for the period
 
 
(130
)
 
19

 
(111
)
 
2,043

 
38

 
2,081

Limited partners' interest for the period
 
 
(11,514
)
 
1,676

 
(9,838
)
 
(29,813
)
 
3,246

 
(26,567
)
Net loss per limited partner unit (basic and diluted)
 
 
$
(0.32
)
 
$
0.04

 
$
(0.28
)
 
$
(0.87
)
 
$
0.10

 
$
(0.77
)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
 
 
Nine Months Ended September 30, 2016
 
Reference
 
As Filed
 
Restatement
Adjustments
 
As Restated
Net loss
 
 
$
(27,770
)
 
$
3,284

 
$
(24,486
)
Provision for cancellations
E
 

 
9,732

 
9,732

Changes in assets and liabilities:
 
 
 
 
 
 
 
Accounts receivable, net of allowance
E
 
(9,167
)
 
(9,732
)
 
(18,899
)
Other assets
B, C
 
(6,270
)
 
1,721

 
(4,549
)
Deferred selling and obtaining costs
B
 
(10,716
)
 
897

 
(9,819
)
Deferred revenues
A, B
 
53,996

 
(4,175
)
 
49,821

Payables and other liabilities
C
 
11,034

 
(1,727
)
 
9,307

Net cash provided by operating activities
 
 
$
18,487

 
$

 
$
18,487


As shown above, the adjustments affecting the condensed consolidated statement of cash flows for the period noted 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.
Summary of Significant Accounting Policies
Refer to Note 1 to the Partnership's audited consolidated financial statements included in Item 8 of its Annual Report on Form 10-K for the year ended December 31, 2016 for the complete summary of significant accounting policies.
Use of Estimates
The preparation of the Partnership’s unaudited condensed 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 unaudited condensed consolidated financial statements, as well as the reported amounts of revenue and expense during the reporting periods. The Partnership’s unaudited condensed consolidated financial statements are based on a number of significant estimates, including revenue and expense accruals, depreciation and amortization, merchandise trust and perpetual care trust asset valuation, allowance for cancellations, unit-based compensation, deferred revenues, deferred merchandise trust investment earnings, deferred selling and obtaining costs, assets and liabilities obtained through business combinations, income taxes, hurricane-related losses and goodwill including quarterly assessment for impairment. As a result, actual results could differ from those estimates.
Goodwill
Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired. Goodwill is not amortized, but instead is subject to impairment testing on an annual basis, and between annual tests whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying amount.
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 condensed 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.
The change in the deferred tax liability during the nine months ended September 30, 2017 was caused by an increase in deferred tax liabilities associated with long-lived intangibles that will reverse after the expiration of the existing deferred tax assets.
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):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
 
 
 
(As restated -
see above)
 
 
 
(As restated -
see above)
Net loss
$
(9,576
)
 
$
(9,949
)
 
$
(29,719
)
 
$
(24,486
)
Less: Incentive distribution right (“IDR”) payments to general partner

 

 

 
2,387

Net loss to allocate to general and common limited partners
(9,576
)
 
(9,949
)
 
(29,719
)
 
(26,873
)
Less: General partner’s interest excluding IDRs
(99
)
 
(111
)
 
(309
)
 
(306
)
Net loss attributable to common limited partners
$
(9,477
)
 
$
(9,838
)
 
$
(29,410
)
 
$
(26,567
)


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 option 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.
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):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Weighted average number of common limited partner units - basic and diluted (1)
37,958

 
35,470

 
37,945

 
34,287

_____________________________
(1)
The diluted weighted average number of limited partners’ units outstanding presented on the condensed consolidated statement of operations does not include 335 thousand units and 383 thousand units for the three months ended September 30, 2017 and 2016, respectively, and 328 thousand units and 375 thousand units for the nine months ended September 30, 2017 and 2016, respectively, as their effects would be anti-dilutive.
Accounting Standard Updates - Not Yet Effective
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU supersedes the revenue recognition requirements in FASB ASC 605, Revenue Recognition, and in most industry-specific topics. The new guidance identifies how and when entities should recognize revenue. The new rules establish a core principle requiring the recognition of revenue to depict the transfer of promised goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for such goods or services. In connection with this new standard, the FASB has issued several amendments to ASU 2014-09, as follows:
In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). This standard improves the implementation guidance on principal versus agent considerations and whether an entity reports revenue on a gross or net basis.
In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. This standard clarifies identifying performance obligations and the licensing implementation guidance.
In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. This standard provides additional guidance on (a) the objective of the collectability criterion, (b) the presentation of sales tax collected from customers, (c) the measurement date of non-cash consideration received, (d) practical expedients in respect of contract modifications and completed contracts at transition and (e) disclosure of the effects of the accounting change in the period of adoption.
In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which amends certain narrow aspects of the guidance, including the disclosure of remaining performance obligations and prior-period performance obligations, as well as other amendments to the guidance on loan guarantee fees, contract costs, refund liabilities, advertising costs and the clarification of certain examples.
In September 2017, the FASB issued ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments, which provides additional clarification and implementation guidance on ASU 2014-09 and is effective consistent with the adoption schedule for ASU 2014-09.
The new guidance in ASU 2014-09, as well as all amendments discussed above, is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The new guidance permits two methods of adoption, full retrospective or modified retrospective and we intend to implement the standard with the modified retrospective approach, which recognizes the cumulative effect of application recognized on that date. Management has developed an implementation plan and is continuing to evaluate the impact that the adoption of this guidance will have on the financial statements of the Partnership. Management continues to monitor modifications, clarifications and interpretations issued by the FASB. Management's implementation plan includes the following:
Establishing an ASC 606 steering committee comprised of various functions across the Partnership;
Performing the detailed review of customer contracts in scope of ASU 2014-09;
Assessing the potential impact that the guidance will have on our current accounting policies and practices; and
Evaluating the changes, if any, to our business processes, systems and controls necessary to support recognition and disclosure under the new guidance.
Management continues to make progress toward the adoption of the new standard but has not yet fully determined the impact of the new standard on our consolidated results of operations, financial position and cash flows. Management is currently assessing the timing of revenue recognition under the new standard, including the recognition of nonrefundable upfront fees. Management expects that there will be an impact to the financial reporting disclosures and internal control over financial reporting.
The Partnership will adopt the requirements of the new standard upon its effective date of January 1, 2018.
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.
In the first quarter of 2016, the FASB issued Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). The core principle of ASU 2016-02 is that all leases create an asset and a liability for lessees and recognition of those lease assets and lease liabilities represents an improvement over previous GAAP, which did not require lease assets and lease liabilities to be recognized for most leases. The amendment is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Partnership plans to adopt the requirements of ASU 2016-02 upon its effective date of January 1, 2019, and is evaluating the potential impact of the adoption on its financial position, results of operations and related disclosures.
In the second quarter of 2016, the FASB issued Update No. 2016-13, Credit Losses (Topic 326) (“ASU 2016-13”). The core principle of ASU 2016-13 is that all assets measured at amortized cost basis should be presented at the net amount expected to be collected using historical experience, current conditions and reasonable and supportable forecasts as a basis for credit loss estimates, instead of the probable initial recognition threshold used under current GAAP. The amendment is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. Early application is permitted. The Partnership plans to adopt the requirements of ASU 2016-13 upon its effective date of January 1, 2020, and is evaluating the potential impact of the adoption on its financial position, results of operations and related disclosures.
In the third quarter of 2016, the FASB issued Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The core principle of ASU 2016-15 is to provide cash flow statement classification guidance. The amendment is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted. The Partnership plans to adopt the requirements of ASU 2016-15 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.
In the fourth quarter of 2016, the FASB issued Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). The core principle of ASU 2016-18 is to provide guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. The amendment is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted. The Partnership plans to adopt the requirements of ASU 2016-18 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.
In the first quarter of 2017, the FASB issued Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Partnership is evaluating the potential impact of the adoption on its financial position, results of operations and related disclosures.
In the first quarter of 2017, the FASB also issued Update No. 2017-04, Intangibles-Goodwill and Other (Topic 350) (“ASU 2017-04”) to simplify the subsequent measurement of goodwill. ASU 2017-04 eliminates Step 2 from the goodwill impairment test. Instead, impairment is defined as the amount by which the carrying value of the reporting unit exceeds its fair value, up to the total amount of goodwill. The Partnership plans to adopt the requirements of ASU 2017-04 upon its effective date of January 1, 2020, and is evaluating the impact, if any, on its financial position, results of operations and related disclosures.
GENERAL (Tables)
The effect of these adjustments on the Partnership’s unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2016 and the unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2016 is summarized below for each affected caption (in thousands, except per unit data):
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (unaudited)
 
 
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2016
 
Reference
 
As Filed
 
Restatement
Adjustments
 
As Restated
 
As Filed
 
Restatement
Adjustments
 
As Restated
Cemetery revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
Merchandise
A, B
 
$
36,314

 
$
1,815

 
$
38,129

 
$
106,937

 
$
3,302

 
$
110,239

Services
A
 
13,928

 
332

 
14,260

 
41,067

 
645

 
41,712

Investment and other
B
 
14,302

 
38

 
14,340

 
40,689

 
116

 
40,805

Funeral home revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
Merchandise
A
 
6,656

 
52

 
6,708

 
20,681

 
113

 
20,794

Total revenues
 
 
78,536

 
2,237

 
80,773

 
233,747

 
4,176

 
237,923

Selling expense
B
 
15,931

 
535

 
16,466

 
46,898

 
876

 
47,774

Funeral home expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
Services
B
 
6,070

 
6

 
6,076

 
18,672

 
15

 
18,687

Total costs and expenses
 
 
83,910

 
541

 
84,451

 
241,917

 
891

 
242,808

Net loss
 
 
(11,644
)
 
1,695

 
(9,949
)
 
(27,770
)
 
3,284

 
(24,486
)
General partner's interest for the period
 
 
(130
)
 
19

 
(111
)
 
2,043

 
38

 
2,081

Limited partners' interest for the period
 
 
(11,514
)
 
1,676

 
(9,838
)
 
(29,813
)
 
3,246

 
(26,567
)
Net loss per limited partner unit (basic and diluted)
 
 
$
(0.32
)
 
$
0.04

 
$
(0.28
)
 
$
(0.87
)
 
$
0.10

 
$
(0.77
)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
 
 
Nine Months Ended September 30, 2016
 
Reference
 
As Filed
 
Restatement
Adjustments
 
As Restated
Net loss
 
 
$
(27,770
)
 
$
3,284

 
$
(24,486
)
Provision for cancellations
E
 

 
9,732

 
9,732

Changes in assets and liabilities:
 
 
 
 
 
 
 
Accounts receivable, net of allowance
E
 
(9,167
)
 
(9,732
)
 
(18,899
)
Other assets
B, C
 
(6,270
)
 
1,721

 
(4,549
)
Deferred selling and obtaining costs
B
 
(10,716
)
 
897

 
(9,819
)
Deferred revenues
A, B
 
53,996

 
(4,175
)
 
49,821

Payables and other liabilities
C
 
11,034

 
(1,727
)
 
9,307

Net cash provided by operating activities
 
 
$
18,487

 
$

 
$
18,487

Assets held for sale consisted of the following at the date indicated (in thousands):
 
September 30, 2017
Cemetery property
$
281

Buildings and improvements
718

Funeral home land
170

Assets held for sale
$
1,169

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):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
 
 
 
(As restated -
see above)
 
 
 
(As restated -
see above)
Net loss
$
(9,576
)
 
$
(9,949
)
 
$
(29,719
)
 
$
(24,486
)
Less: Incentive distribution right (“IDR”) payments to general partner

 

 

 
2,387

Net loss to allocate to general and common limited partners
(9,576
)
 
(9,949
)
 
(29,719
)
 
(26,873
)
Less: General partner’s interest excluding IDRs
(99
)
 
(111
)
 
(309
)
 
(306
)
Net loss attributable to common limited partners
$
(9,477
)
 
$
(9,838
)
 
$
(29,410
)
 
$
(26,567
)
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):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Weighted average number of common limited partner units - basic and diluted (1)
37,958

 
35,470

 
37,945

 
34,287

_____________________________
(1)
The diluted weighted average number of limited partners’ units outstanding presented on the condensed consolidated statement of operations does not include 335 thousand units and 383 thousand units for the three months ended September 30, 2017 and 2016, respectively, and 328 thousand units and 375 thousand units for the nine months ended September 30, 2017 and 2016, respectively, as their effects would be anti-dilutive.
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE (Tables)
Long-term accounts receivable, net, consisted of the following at the dates indicated (in thousands):
 
September 30, 2017
 
December 31, 2016
Customer receivables
$
223,861

 
$
223,326

Unearned finance income
(20,490
)
 
(21,034
)
Allowance for contract cancellations
(25,219
)
 
(26,153
)
Accounts receivable, net of allowance
178,152

 
176,139

Less: Current portion, net of allowance
77,058

 
77,253

Long-term portion, net of allowance
$
101,094

 
$
98,886

Activity in the allowance for contract cancellations was as follows (in thousands):
 
Nine Months Ended September 30,
 
2017
 
2016
 
 
 
(As restated -
see Note 1)
Balance, beginning of period
$
26,153

 
$
23,985

Provision for cancellations
5,123

 
9,732

Cancellations
(6,057
)
 
(5,515
)
Balance, end of period
$
25,219

 
$
28,202

CEMETERY PROPERTY (Tables)
Property and equipment consisted of the following at the dates indicated (in thousands):
 
September 30, 2017
 
December 31, 2016
Buildings and improvements
$
124,551

 
$
125,442

Furniture and equipment
57,170

 
56,408

Funeral home land
14,235

 
11,527

Property and equipment, gross
195,956

 
193,377

Less: Accumulated depreciation
(80,840
)
 
(75,096
)
Property and equipment, net of accumulated depreciation
$
115,116

 
$
118,281

Cemetery property consisted of the following at the dates indicated (in thousands):
 
September 30, 2017
 
December 31, 2016
Cemetery land
$
256,120

 
$
257,914

Mausoleum crypts and lawn crypts
78,088

 
79,401

Cemetery property
$
334,208

 
$
337,315

PROPERTY AND EQUIPMENT (Tables)
Property and Equipment
Property and equipment consisted of the following at the dates indicated (in thousands):
 
September 30, 2017
 
December 31, 2016
Buildings and improvements
$
124,551

 
$
125,442

Furniture and equipment
57,170

 
56,408

Funeral home land
14,235

 
11,527

Property and equipment, gross
195,956

 
193,377

Less: Accumulated depreciation
(80,840
)
 
(75,096
)
Property and equipment, net of accumulated depreciation
$
115,116

 
$
118,281

MERCHANDISE TRUSTS (Tables) (Variable Interest Entity, Primary Beneficiary, Merchandise Trusts)
A reconciliation of the Partnership’s merchandise trust activities for the nine months ended September 30, 2017 and 2016 is presented below (in thousands):
 
Nine Months Ended September 30,
 
2017
 
2016
Balance, beginning of period
$
507,079

 
$
464,676

Contributions
44,497

 
49,841

Distributions
(65,723
)
 
(49,168
)
Interest and dividends
18,252

 
17,657

Capital gain distributions
927

 
264

Realized gains and losses
14,192

 
3,727

Other than temporary impairment

 
(7,278
)
Taxes
(1,306
)
 
(1,721
)
Fees
(1,855
)
 
(2,234
)
Unrealized change in fair value
(3,882
)
 
28,840

Balance, end of period
$
512,181

 
$
504,604

The cost and market value associated with the assets held in the merchandise trusts as of September 30, 2017 and December 31, 2016 were as follows (in thousands):
September 30, 2017
Fair Value
Hierarchy Level
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Short-term investments
1
 
$
10,874

 
$

 
$

 
$
10,874

Fixed maturities:
 
 
 
 
 
 
 
 
 
U.S. governmental securities
2
 
206

 
1

 
(64
)
 
143

Corporate debt securities
2
 
2,308

 
141

 
(188
)
 
2,261

Total fixed maturities
 
 
2,514

 
142

 
(252
)
 
2,404

Mutual funds - debt securities
1
 
249,209

 
4,153

 
(426
)
 
252,936

Mutual funds - equity securities
1
 
81,029

 
3,412

 
(5,001
)
 
79,440

Other investment funds (1)
 
 
131,010

 
169

 
(353
)
 
130,826

Equity securities
1
 
15,712

 
2,720

 
(445
)
 
17,987

Other invested assets
2
 
8,797

 

 

 
8,797

Total investments
 
 
$
499,145

 
$
10,596

 
$
(6,477
)
 
$
503,264

West Virginia Trust Receivable
 
 
8,917

 

 

 
8,917

Total
 
 
$
508,062

 
$
10,596

 
$
(6,477
)
 
$
512,181

______________________________ 
(1)
Other investment funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the balance sheet. This asset class is composed of fixed income funds and equity funds, which have redemption periods ranging from 30 to 90 days, and private credit funds, which have lockup periods of seven years with two potential one year extensions at the discretion of the funds’ general partners. As of September 30, 2017, there were $32.4 million in unfunded commitments to the private credit funds, which are callable at any time.
December 31, 2016
Fair Value
Hierarchy Level
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Short-term investments
1
 
$
17,317

 
$

 
$

 
$
17,317

Fixed maturities:
 
 
 
 
 
 
 
 
 
U.S. governmental securities
2
 
172

 
2

 
(44
)
 
130

Corporate debt securities
2
 
6,311

 
269

 
(202
)
 
6,378

Total fixed maturities
 
 
6,483

 
271

 
(246
)
 
6,508

Mutual funds - debt securities
1
 
236,159

 
1,580

 
(96
)
 
237,643

Mutual funds - equity securities
1
 
126,215

 
3,361

 
(533
)
 
129,043

Other investment funds (1)
 
 
60,017

 
603

 
(387
)
 
60,233

Equity securities
1
 
35,079

 
3,640

 
(192
)
 
38,527

Other invested assets
2
 
9,239

 

 

 
9,239

Total investments
 
 
$
490,509

 
$
9,455

 
(1,454
)
 
$
498,510

West Virginia Trust Receivable
 
 
8,569

 

 

 
8,569

Total
 
 
$
499,078

 
$
9,455

 
$
(1,454
)
 
$
507,079

______________________________ 
(1)
Other investment funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the balance sheet. This asset class is composed of fixed income funds and equity funds, which have redemption periods ranging from 30 to 90 days.
The contractual maturities of debt securities as of September 30, 2017 were as follows (in thousands):
 
Less than
1 year
 
1 year through
5 years
 
6 years through
10 years
 
More than
10 years
U.S. governmental securities
$

 
$
88

 
$
55

 
$

Corporate debt securities
172

 
1,835

 
242

 
12

Total fixed maturities
$
172

 
$
1,923

 
$
297

 
$
12

An aging of unrealized losses on the Partnership’s investments in debt and equity securities within the merchandise trusts as of September 30, 2017 and December 31, 2016 is presented below (in thousands):
 
Less than 12 months
 
12 months or more
 
Total
September 30, 2017
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. governmental securities
$

 
$

 
$
123

 
$
64

 
$
123

 
$
64

Corporate debt securities
68

 
1

 
454

 
187

 
522

 
188

Total fixed maturities
68

 
1

 
577

 
251

 
645

 
252

Mutual funds - debt securities
27,882

 
142

 
1,911

 
284

 
29,793

 
426

Mutual funds - equity securities
50,406

 
5,001

 

 

 
50,406

 
5,001

Other investment funds
60,896

 
353

 

 

 
60,896

 
353

Equity securities
3,460

 
418

 
467

 
27

 
3,927

 
445

Total
$
142,712

 
$
5,915

 
$
2,955

 
$
562

 
$
145,667

 
$
6,477

 
 
 
 
 
 
 
 
 
 
 
 
 
Less than 12 months
 
12 months or more
 
Total
December 31, 2016
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. governmental securities
$

 
$

 
$
87

 
$
44

 
$
87

 
$
44

Corporate debt securities
556

 
6

 
871

 
196

 
1,427

 
202

Total fixed maturities
556

 
6

 
958

 
240

 
1,514

 
246

Mutual funds - debt securities
6,040

 
61

 
754

 
35

 
6,794

 
96

Mutual funds - equity securities
7,475

 
357

 
2,578

 
176

 
10,053

 
533

Other investment funds
37,357

 
387

 

 

 
37,357

 
387

Equity securities
1,292

 
89

 
413

 
103

 
1,705

 
192

Total
$
52,720

 
$
900

 
$
4,703

 
$
554

 
$
57,423

 
$
1,454

PERPETUAL CARE TRUSTS (Tables) (Perpetual care trusts, Variable Interest Entity, Primary Beneficiary)
A reconciliation of the Partnership’s perpetual care trust activities for the three months ended September 30, 2017 and 2016 is presented below (in thousands):
 
Nine Months Ended September 30,
 
2017
 
2016
Balance, beginning of period
$
333,780

 
$
307,804

Contributions
7,156

 
13,111

Distributions
(13,449
)
 
(10,923
)
Interest and dividends
12,935

 
13,609

Capital gain distributions
403

 
477

Realized gains and losses
1,371

 
(413
)
Other than temporary impairment

 
(466
)
Taxes
(420
)
 
(566
)
Fees
(1,095
)
 
(2,189
)
Unrealized change in fair value
(2,070
)
 
14,479

Balance, end of period
$
338,611

 
$
334,923

The cost and market value associated with the assets held in the perpetual care trusts as of September 30, 2017 and December 31, 2016 were as follows (in thousands):
September 30, 2017
Fair Value
Hierarchy Level
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Short-term investments
1
 
$
9,195

 
$

 
$

 
$
9,195

Fixed maturities:
 
 
 
 
 
 
 
 

U.S. governmental securities
2
 
560

 
5

 
(40
)
 
525

Corporate debt securities
2
 
5,778

 
166

 
(147
)
 
5,797

Total fixed maturities
 
 
6,338

 
171

 
(187
)
 
6,322

Mutual funds - debt securities
1
 
156,057

 
3,318

 
(482
)
 
158,893

Mutual funds - equity securities
1
 
32,573

 
1,374

 
(1,470
)
 
32,477

Other investment funds (1)
 
 
107,563

 
2,697

 
(1,065
)
 
109,195

Equity securities
1
 
22,389

 
1,701

 
(1,707
)
 
22,383

Other invested assets
2
 
146

 

 

 
146

Total investments
 
 
$
334,261

 
$
9,261

 
$
(4,911
)
 
$
338,611

______________________________  
(1)
Other investment funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the balance sheet. This asset class is composed of fixed income funds and equity funds, which have a redemption period ranging from 30 to 90 days, and private credit funds, which have lockup periods ranging from five to ten years with three potential one year extensions at the discretion of the funds’ general partners. As of September 30, 2017, there were $78.2 million in unfunded commitments to the private credit funds, which are callable at any time.
December 31, 2016
Fair Value
Hierarchy Level
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Short-term investments
1
 
$
16,113

 
$

 
$

 
$
16,113

Fixed maturities:
 
 
 
 
 
 
 
 
 
U.S. governmental securities
2
 
483

 
14

 
(23
)
 
474

Corporate debt securities
2
 
12,598

 
380

 
(152
)
 
12,826

Total fixed maturities
 
 
13,081

 
394

 
(175
)
 
13,300

Mutual funds - debt securities
1
 
127,033

 
1,187

 
(669
)
 
127,551

Mutual funds - equity securities
1
 
30,708

 
1,940

 
(26
)
 
32,622

Other investment funds (1)

 
119,196

 
2,672

 
(622
)
 
121,246

Equity securities
1
 
20,978

 
2,150

 
(432
)
 
22,696

Other invested assets
2
 
252

 

 

 
252

Total investments
 
 
$
327,361

 
$
8,343

 
$
(1,924
)
 
$
333,780

______________________________  
(1)
Other investment funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the balance sheet. This asset class is composed of fixed income funds and equity funds, which have a redemption period ranging from 30 to 90 days, and private credit funds, which have lockup periods ranging from six to ten years with three potential one year extensions at the discretion of the funds’ general partners. As of December 31, 2016, there were $45.1 million in unfunded commitments to the private credit funds, which are callable at any time.
The contractual maturities of debt securities as of September 30, 2017 were as follows (in thousands):
 
Less than
1 year
 
1 year through
5 years
 
6 years through
10 years
 
More than
10 years
U.S. governmental securities
$
52

 
$
267

 
$
166

 
$
40

Corporate debt securities
843

 
4,514

 
340

 
100

Total fixed maturities
$
895

 
$
4,781

 
$
506

 
$
140

An aging of unrealized losses on the Partnership’s investments in debt and equity securities within the perpetual care trusts as of September 30, 2017 and December 31, 2016 is presented below (in thousands):
 
Less than 12 months
 
12 months or more
 
Total
September 30, 2017
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. governmental securities
$

 
$

 
$
456

 
$
40

 
$
456

 
$
40

Corporate debt securities
659

 
12

 
1,640

 
135

 
2,299

 
147

Total fixed maturities
659

 
12

 
2,096

 
175

 
2,755

 
187

Mutual funds - debt securities
15,678

 
235

 
8,408

 
247

 
24,086

 
482

Mutual funds - equity securities
15,381

 
1,458

 
41

 
12

 
15,422

 
1,470

Other investment funds
56,165

 
1,065

 

 

 
56,165

 
1,065

Equity securities
9,238

 
1,686

 
37

 
21

 
9,275

 
1,707

Total
$
97,121

 
$
4,456

 
$
10,582

 
$
455

 
$
107,703

 
$
4,911

 
 
 
 
 
 
 
 
 
 
 
 
 
Less than 12 months
 
12 months or more
 
Total
December 31, 2016
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. governmental securities
$

 
$

 
$
283

 
$
23

 
$
283

 
$
23

Corporate debt securities
747

 
10

 
2,980

 
142

 
3,727

 
152

Total fixed maturities
747

 
10

 
3,263

 
165

 
4,010

 
175

Mutual funds - debt securities
24,026

 
620

 
1,908

 
49

 
25,934

 
669

Mutual funds - equity securities
3,836

 
16

 
452

 
10

 
4,288

 
26

Other investment funds
37,577

 
622

 

 

 
37,577

 
622

Equity securities
4,532

 
409

 
145

 
23

 
4,677

 
432

Total
$
70,718

 
$
1,677

 
$
5,768

 
$
247

 
$
76,486

 
$
1,924

LONG-TERM DEBT (Tables)
Total debt consisted of the following at the dates indicated (in thousands):
 
September 30, 2017
 
December 31, 2016
Credit facility
$
142,925

 
$
137,125

7.875% Senior Notes, due June 2021
172,975

 
172,623

Notes payable - acquisition debt
354

 
502

Notes payable - acquisition non-competes
395

 
928

Insurance and vehicle financing
1,488

 
1,807

Less deferred financing costs, net of accumulated amortization
(10,451
)
 
(10,859
)
Total debt
307,686

 
302,126

Less current maturities
(1,114
)
 
(1,775
)
Total long-term debt
$
306,572

 
$
300,351

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
2017
103.938%
2018
101.969%
2019 and thereafter
100.000%
DEFERRED REVENUES (Tables)
Deferred Revenues
Deferred revenues and related costs consisted of the following at the dates indicated (in thousands):
 
September 30, 2017
 
December 31, 2016
Deferred contract revenues
$
799,552

 
$
782,120

Deferred merchandise trust revenue
100,185

 
76,512

Deferred merchandise trust unrealized gains
4,116

 
8,001

Deferred revenues
$
903,853

 
$
866,633

Deferred selling and obtaining costs
$
124,137

 
$
116,890

COMMITMENTS AND CONTINGENCIES (Tables)
Fixed Rent for Cemeteries
In connection with the Partnership’s lease and management agreements with the Archdiocese of Philadelphia, it has committed to pay aggregate fixed rent of $36.0 million in the following amounts:
Lease Years 1-5 (May 28, 2014 - May 31, 2019)
None
Lease Years 6-20 (June 1, 2019 - May 31, 2034)
$1,000,000 per Lease Year
Lease Years 21-25 (June 1, 2034 - May 31, 2039)
$1,200,000 per Lease Year
Lease Years 26-35 (June 1, 2039 - May 31, 2049)
$1,500,000 per Lease Year
Lease Years 36-60 (June 1, 2049 - May 31, 2074)
None
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)
CONDENSED CONSOLIDATING BALANCE SHEETS (Unaudited, in thousands)
September 30, 2017
Parent
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$

 
$
5,614

 
$
2,846

 
$

 
$
8,460

Assets held for sale

 

 
1,169

 

 

 
1,169

Other current assets

 
3,877

 
88,438

 
17,216

 

 
109,531

Total current assets

 
3,877

 
95,221

 
20,062

 

 
119,160

Long-term accounts receivable

 
2,062

 
85,867

 
13,165

 

 
101,094

Cemetery property and equipment

 
790

 
413,445

 
35,089

 

 
449,324

Merchandise trusts

 

 

 
512,181

 

 
512,181

Perpetual care trusts

 

 

 
338,611

 

 
338,611

Deferred selling and obtaining costs

 
6,055

 
96,891

 
21,191

 

 
124,137

Goodwill and intangible assets

 

 
72,129

 
62,047

 

 
134,176

Other assets

 

 
17,873

 
2,798

 

 
20,671

Investments in and amounts due from affiliates eliminated upon consolidation
204,948

 
122,924

 
559,338

 

 
(887,210
)
 

Total assets
$
204,948

 
$
135,708

 
$
1,340,764

 
$
1,005,144

 
$
(887,210
)
 
$
1,799,354

Liabilities and Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
$

 
$
113

 
$
52,046

 
$
1,271

 
$

 
$
53,430

Long-term debt, net of deferred financing costs
68,202

 
104,774

 
133,596

 

 

 
306,572

Deferred revenues

 
33,588

 
766,644

 
103,621

 

 
903,853

Perpetual care trust corpus

 

 

 
338,611

 

 
338,611

Other long-term liabilities

 

 
46,252

 
13,890

 

 
60,142

Due to affiliates

 

 
172,976

 
574,984

 
(747,960
)
 

Total liabilities
68,202

 
138,475

 
1,171,514

 
1,032,377

 
(747,960
)
 
1,662,608

Partners' capital
136,746

 
(2,767
)
 
169,250

 
(27,233
)
 
(139,250
)
 
136,746

Total liabilities and partners' capital
$
204,948

 
$
135,708

 
$
1,340,764

 
$
1,005,144

 
$
(887,210
)
 
$
1,799,354















CONDENSED CONSOLIDATING BALANCE SHEETS (in thousands)
December 31, 2016
Parent
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$

 
$
9,145

 
$
3,425

 
$

 
$
12,570

Other current assets

 
4,567

 
83,765

 
17,919

 

 
106,251

Total current assets

 
4,567

 
92,910

 
21,344

 

 
118,821

Long-term accounts receivable

 
1,725

 
83,993

 
13,168

 

 
98,886

Cemetery property and equipment

 
930

 
420,077

 
34,589

 

 
455,596

Merchandise trusts

 

 

 
507,079

 

 
507,079

Perpetual care trusts

 

 

 
333,780

 

 
333,780

Deferred selling and obtaining costs

 
5,668

 
91,252

 
19,970

 

 
116,890

Goodwill and intangible assets

 

 
72,963

 
62,911

 

 
135,874

Other assets

 

 
17,244

 
2,843

 

 
20,087

Investments in and amounts due from affiliates eliminated upon consolidation
258,417

 
182,060

 
557,455

 

 
(997,932
)
 

Total assets
$
258,417

 
$
194,950

 
$
1,335,894

 
$
995,684

 
$
(997,932
)
 
$
1,787,013

Liabilities and Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
$

 
$
320

 
$
38,336

 
$
237

 
$

 
$
38,893

Long-term debt, net of deferred financing costs
68,063

 
104,560

 
127,728

 

 

 
300,351

Deferred revenues

 
30,321

 
738,184

 
98,128

 

 
866,633

Perpetual care trust corpus

 

 

 
333,780

 

 
333,780

Other long-term liabilities

 

 
45,802

 
11,200

 

 
57,002

Due to affiliates

 

 
172,623

 
581,427

 
(754,050
)
 

Total liabilities
68,063

 
135,201

 
1,122,673

 
1,024,772

 
(754,050
)
 
1,596,659

Partners’ capital
190,354

 
59,749

 
213,221

 
(29,088
)
 
(243,882
)
 
190,354

Total liabilities and partners’ capital
$
258,417

 
$
194,950

 
$
1,335,894

 
$
995,684

 
$
(997,932
)
 
$
1,787,013

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Unaudited, in thousands)
Three Months Ended September 30, 2017
Parent
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Total revenues
$

 
$
1,842

 
$
69,423

 
$
14,648

 
$
(1,879
)
 
$
84,034

Total costs and expenses

 
(2,883
)
 
(71,234
)
 
(14,144
)
 
1,879

 
(86,382
)
Other gains, net

 

 
338

 

 

 
338

Net loss from equity investment in subsidiaries
(8,218
)
 
(8,674
)
 

 

 
16,892

 

Interest expense
(1,358
)
 
(2,087
)
 
(3,264
)
 
(235
)
 

 
(6,944
)
Net income (loss) before income taxes
(9,576
)
 
(11,802
)
 
(4,737
)
 
269

 
16,892

 
(8,954
)
Income tax expense

 

 
(622
)
 

 

 
(622
)
Net income (loss)
$
(9,576
)
 
$
(11,802
)
 
$
(5,359
)
 
$
269

 
$
16,892

 
$
(9,576
)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2016 (As restated, see A)
Parent
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
 
 
 
 
B
 
B
 
 
 
 
Total revenues
$

 
$
2,312

 
$
69,293

 
$
13,624

 
$
(4,456
)
 
$
80,773

Total costs and expenses

 
(3,098
)
 
(69,725
)
 
(16,084
)
 
4,456

 
(84,451
)
Other losses, net

 

 
(506
)
 

 

 
(506
)
Net loss from equity investment in subsidiaries
(8,591
)
 
(7,658
)
 

 

 
16,249

 

Interest expense
(1,358
)
 
(2,087
)
 
(2,295
)
 
(194
)
 

 
(5,934
)
Net loss before income taxes
(9,949
)
 
(10,531
)
 
(3,233
)
 
(2,654
)
 
16,249

 
(10,118
)
Income tax benefit

 

 
169

 

 

 
169

Net loss
$
(9,949
)
 
$
(10,531
)
 
$
(3,064
)
 
$
(2,654
)
 
$
16,249

 
$
(9,949
)
A.
See Note 1 for a summary of those accounting adjustments and the impact on the unaudited condensed consolidated financial statements for the three months ended September 30, 2016.
B.
The Partnership incorrectly presented the accounts of certain cemeteries owned by other entities but which we operate under long-term lease, operating or management agreements, as guarantor subsidiaries instead of non-guarantor subsidiaries. The adjustments to correctly present these cemeteries as non-guarantor subsidiaries resulted in a $1.4 million increase in non-guarantor revenues and a $1.4 million increase in non-guarantor costs and expenses and corresponding reductions to guarantor revenues and costs and expenses for the three months ended September 30, 2016.
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Unaudited, in thousands)
Nine Months Ended September 30, 2017
Parent
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Total revenues
$

 
$
5,381

 
$
209,331

 
$
44,785

 
$
(6,565
)
 
$
252,932

Total costs and expenses

 
(10,090
)
 
(214,855
)
 
(41,062
)
 
6,565

 
(259,442
)
Other losses, net

 

 
(733
)
 

 

 
(733
)
Net loss from equity investment in subsidiaries
(25,644
)
 
(27,135
)
 

 

 
52,779

 

Interest expense
(4,075
)
 
(6,261
)
 
(9,366
)
 
(689
)
 

 
(20,391
)
Net income (loss) before income taxes
(29,719
)
 
(38,105
)
 
(15,623
)
 
3,034

 
52,779

 
(27,634
)
Income tax expense

 

 
(2,085
)
 

 

 
(2,085
)
Net income (loss)
$
(29,719
)
 
$
(38,105
)
 
$
(17,708
)
 
$
3,034

 
$
52,779

 
$
(29,719
)
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2016 (As restated, see A)
Parent
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
 
 
 
 
B
 
B
 
 
 
 
Total revenues
$

 
$
5,279

 
$
199,458

 
$
42,374

 
$
(9,188
)
 
$
237,923

Total costs and expenses

 
(8,212
)
 
(201,512
)
 
(42,272
)
 
9,188

 
(242,808
)
Other losses, net

 

 
(1,579
)
 

 

 
(1,579
)
Net loss from equity investment in subsidiaries
(20,411
)
 
(21,639
)
 

 

 
42,050

 

Interest expense
(4,075
)
 
(6,261
)
 
(6,515
)
 
(580
)
 

 
(17,431
)
Net loss before income taxes
(24,486
)
 
(30,833
)
 
(10,148
)
 
(478
)
 
42,050

 
(23,895
)
Income tax benefit

 

 
(591
)
 

 

 
(591
)
Net loss
$
(24,486
)
 
$
(30,833
)
 
$
(10,739
)
 
$
(478
)
 
$
42,050

 
$
(24,486
)
A.
See Note 1 for a summary of those accounting adjustments and the impact on the unaudited condensed consolidated financial statements for the nine months ended September 30, 2016.
B.
The Partnership incorrectly presented the accounts of certain cemeteries owned by other entities but which we operate under long-term lease, operating or management agreements, as guarantor subsidiaries instead of non-guarantor subsidiaries. The adjustments to correctly present these cemeteries as non-guarantor subsidiaries resulted in a $3.6 million increase in non-guarantor revenues and a $3.4 million increase in non-guarantor costs and expenses and corresponding reductions to guarantor revenues and costs and expenses for the nine months ended September 30, 2016.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Unaudited, in thousands)
Nine Months Ended September 30, 2017
Parent
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by operating activities
$
24,545

 
$
57

 
$
34,863

 
$
117

 
$
(34,881
)
 
$
24,701

Cash Flows From Investing Activities:
 
 
 
 
 
 
 
 
 
 
 
Cash paid for acquisitions and capital expenditures, net of proceeds from divestitures and asset sales

 
(57
)
 
(6,105
)
 
(696
)
 

 
(6,858
)
Net cash used in investing activities

 
(57
)
 
(6,105
)
 
(696
)
 

 
(6,858
)
Cash Flows From Financing Activities:
 
 
 
 
 
 
 
 
 
 
 
Cash distributions
(24,545
)
 

 

 

 

 
(24,545
)
Payments to affiliates

 

 
(34,881
)
 

 
34,881

 

Net borrowings and repayments of debt

 

 
4,165

 

 

 
4,165

Other financing activities

 

 
(1,573
)
 

 

 
(1,573
)
Net cash provided by (used in) financing activities
(24,545
)
 

 
(32,289
)
 

 
34,881

 
(21,953
)
Net increase (decrease) in cash and cash equivalents

 

 
(3,531
)
 
(579
)
 

 
(4,110
)
Cash and cash equivalents - Beginning of period

 

 
9,145

 
3,425

 

 
12,570

Cash and cash equivalents - End of period
$

 
$

 
$
5,614

 
$
2,846

 
$

 
$
8,460

 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2016 (As restated, see A)
Parent
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
 
 
 
 
B
 
B
 
 
 
 
Net cash provided by operating activities
$
2,624

 
$
86

 
$
26,260

 
$
2,477

 
$
(12,960
)
 
$
18,487

Cash Flows From Investing Activities:
 
 
 
 
 
 
 
 
 
 
 
Cash paid for acquisitions and capital expenditures, net of proceeds from asset sales

 
(86
)
 
(15,819
)
 
(2,404
)
 

 
(18,309
)
Payments to affiliates
(9,097
)
 

 

 

 
9,097

 

Net cash used in investing activities
(9,097
)
 
(86
)
 
(15,819
)
 
(2,404
)
 
9,097

 
(18,309
)
Cash Flows From Financing Activities:
 
 
 
 
 
 
 
 
 
 
 
Cash distributions
(68,062
)
 

 

 

 

 
(68,062
)
Payments to affiliates

 

 
(3,863
)
 

 
3,863

 

Net borrowings and repayments of debt

 

 
168

 

 

 
168

Proceeds from issuance of common units
74,535

 

 

 

 

 
74,535

Other financing activities

 

 
(6,362
)
 

 

 
(6,362
)
Net cash provided by (used in) financing activities
6,473

 

 
(10,057
)
 

 
3,863

 
279

Net increase (decrease) in cash and cash equivalents

 

 
384

 
73

 

 
457

Cash and cash equivalents - Beginning of period

 

 
11,801

 
3,352

 

 
15,153

Cash and cash equivalents - End of period
$

 
$

 
$
12,185

 
$
3,425

 
$

 
$
15,610

A.
See Note 1 for a summary of those accounting adjustments and the impact on the unaudited condensed consolidated financial statements for the nine months ended September 30, 2016.
B.
The Partnership incorrectly presented the accounts of certain cemeteries owned by other entities but which we operate under long-term lease, operating or management agreements, as guarantor subsidiaries instead of non-guarantor subsidiaries. The adjustments to correctly present these cemeteries as non-guarantor subsidiaries resulted in a $0.9 million increase in non-guarantor cash provided by operating activities, with a corresponding decrease in guarantor cash provided by operating activities for the nine months ended September 30, 2016.
SEGMENT INFORMATION (Tables)
Segment Information
Operating segment data for and as of the periods indicated were as follows (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
STATEMENT OF OPERATIONS DATA:
 
 
(As restated -
see Note 1)
 
 
 
(As restated -
see Note 1)
Cemetery Operations:
 
 
 
 
 
 
 
Revenues
$
69,543

 
$
66,729

 
$
205,816

 
$
192,756

Operating costs and expenses
(58,728
)
 
(57,635
)
 
(172,903
)
 
(163,243
)
Depreciation and amortization
(2,175
)
 
(2,058
)
 
(6,734
)
 
(6,042
)
Segment income
$
8,640

 
$
7,036

 
$
26,179

 
$
23,471

Funeral Home Operations:
 
 
 
 
 
 
 
Revenues
$
14,491

 
$
14,044

 
$
47,116

 
$
45,167

Operating costs and expenses
(12,581
)
 
(13,831
)
 
(37,449
)
 
(40,312
)
Depreciation and amortization
(753
)
 
(692
)
 
(2,369
)
 
(2,427
)
Segment income (loss)
$
1,157

 
$
(479
)
 
$
7,298

 
$
2,428

Reconciliation of segment income to net loss:
 
 
 
 
 
 
 
Cemetery Operations
$
8,640

 
$
7,036

 
$
26,179

 
$
23,471

Funeral Home Operations
1,157

 
(479
)
 
7,298

 
2,428

Total segment income
9,797

 
6,557

 
33,477

 
25,899

Corporate overhead
(11,887
)
 
(10,058
)
 
(39,058
)
 
(30,106
)
Corporate depreciation and amortization
(258
)
 
(177
)
 
(929
)
 
(678
)
Other gains (losses), net
338

 
(506
)
 
(733
)
 
(1,579
)
Interest expense
(6,944
)
 
(5,934
)
 
(20,391
)
 
(17,431
)
Income tax benefit (expense)
(622
)
 
169

 
(2,085
)
 
(591
)
Net loss
$
(9,576
)
 
$
(9,949
)
 
$
(29,719
)
 
$
(24,486
)
 
 
 
 
 
 
 
 
CASH FLOW DATA:
 
 
 
 
 
 
 
Capital expenditures:
 
 
 
 
 
 
 
Cemetery Operations
$
4,525

 
$
1,696

 
$
7,501

 
$
6,328

Funeral Home Operations
76

 
305

 
203

 
800

Corporate
48

 
150

 
256

 
2,527

Total capital expenditures
$
4,649

 
$
2,151

 
$
7,960

 
$
9,655

 
 
 
 
 
 
 
 
BALANCE SHEET DATA:
September 30, 2017
 
December 31, 2016
 
 
 
 
Assets:
 
 
 
 
 
 
 
Cemetery Operations
$
1,585,369

 
$
1,573,494

 
 
 
 
Funeral Home Operations
200,626

 
198,200

 
 
 
 
Corporate
13,359

 
15,319

 
 
 
 
Total assets
$
1,799,354

 
$
1,787,013

 
 
 
 
Goodwill:
 
 
 
 
 
 
 
Cemetery Operations
$
24,862

 
$
24,862

 
 
 
 
Funeral Home Operations
45,574

 
45,574

 
 
 
 
Total goodwill
$
70,436

 
$
70,436

 
 
 
 
SUPPLEMENTAL CONDENSED CONSOLIDATED CASH FLOW INFORMATION (Tables)
Schedule of Cash Flow, Supplemental Disclosures
The tables presented below provide supplemental information to the condensed consolidated statements of cash flows regarding contract origination and maturity activity included in the pertinent captions on the Partnership's condensed consolidated statements of cash flows (in thousands):
 
Nine Months Ended September 30,
 
2017
 
2016
Pre-need/at-need contract originations (sales on credit)
$
(78,419
)
 
$
(88,502
)
Cash receipts from sales on credit (post-origination)
69,843

 
69,603

Changes in Accounts receivable, net of allowance
$
(8,576
)
 
$
(18,899
)
 
 
 
 
Deferrals:
 
 
 
Cash receipts from customer deposits at origination, net of refunds
$
113,177

 
$
114,215

Withdrawals of realized income from merchandise trusts during the period
10,592

 
10,114

Pre-need/at-need contract originations (sales on credit)
78,419

 
88,502

Undistributed merchandise trust investment earnings (losses), net
(32,299
)
 
8,034

Recognition:
 
 
 
Merchandise trust investment income, net withdrawn as of end of period
(7,851
)
 
(4,203
)
Recognized maturities of customer contracts collected as of end of period
(148,630
)
 
(138,999
)
Recognized maturities of customer contracts uncollected as of end of period
(25,527
)
 
(27,842
)
Changes in Deferred revenues
$
(12,119
)
 
$
49,821

GENERAL - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 3 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Jun. 30, 2017
Impaired funeral homes
Property
Sep. 30, 2017
Impaired funeral homes
Sep. 30, 2017
Cemetery
Sep. 30, 2016
Cemetery
Sep. 30, 2017
Cemetery
Sep. 30, 2016
Cemetery
Dec. 31, 2016
Cemetery
Sep. 30, 2017
Cemetery
Wholly Owned Properties
Property
Sep. 30, 2017
Cemetery
Consolidated Properties
Cemetery property
Property
Sep. 30, 2017
Cemetery
Unconsolidated Properties
Property
Sep. 30, 2017
Cemetery
US and Puerto Rico
Property
State
Sep. 30, 2017
Cemetery
US and Puerto Rico
Wholly Owned Properties
Property
Sep. 30, 2017
Cemetery
US and Puerto Rico
Managed Properties
Property
Sep. 30, 2017
Funeral Home
Sep. 30, 2016
Funeral Home
Sep. 30, 2017
Funeral Home
Sep. 30, 2016
Funeral Home
Dec. 31, 2016
Funeral Home
Sep. 30, 2017
Funeral Home
US and Puerto Rico
State
Property
Sep. 30, 2016
Restatement Adjustments
Sep. 30, 2016
Restatement Adjustments
Sep. 30, 2016
Restatement Adjustments
Cemetery
Sep. 30, 2016
Restatement Adjustments
Cemetery
Sep. 30, 2016
Restatement Adjustments
Funeral Home
Sep. 30, 2016
Restatement Adjustments
Funeral Home
Sep. 30, 2016
Adjustment due to changes in inputs used to calculate trust income recognition
Restatement Adjustments
Cemetery
Sep. 30, 2016
Adjustment due to increase in cancellation reserve expense
Restatement Adjustments
Cemetery
Sep. 30, 2017
Revolving Credit Facility
Sep. 30, 2017
Held-for-sale
Dec. 31, 2016
Held-for-sale
Sep. 30, 2017
Held-for-sale
Cemetery property
Sep. 30, 2017
Held-for-sale
Impaired funeral homes
Jun. 30, 2017
Held-for-sale
Impaired funeral homes
Property
Jun. 29, 2017
Held-for-sale
Impaired funeral homes
Sep. 30, 2017
Held-for-sale
Cemetery
Property
Sep. 30, 2017
Held-for-sale
Funeral Home
Property
Jun. 30, 2017
Other gains (losses), net
Sep. 30, 2017
Other gains (losses), net
Impaired funeral homes
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of operating locations
 
 
 
 
 
 
 
 
 
 
 
 
45 
16 
15 
316 
285 
31 
 
 
 
 
 
97 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of states
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
27 
 
 
 
 
 
 
 
18 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$ 84,034,000 
$ 80,773,000 
$ 252,932,000 
$ 237,923,000 
 
 
 
$ 69,543,000 
$ 66,729,000 
$ 205,816,000 
$ 192,756,000 
 
 
 
 
 
 
 
$ 14,491,000 
$ 14,044,000 
$ 47,116,000 
$ 45,167,000 
 
 
$ 2,200,000 
$ 4,176,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merchandise revenue
 
 
 
 
 
 
 
40,331,000 
38,129,000 
119,229,000 
110,239,000 
 
 
 
 
 
 
 
6,591,000 
6,708,000 
21,176,000 
20,794,000 
 
 
1,900,000 
3,500,000 
1,815,000 
3,302,000 
52,000 
113,000 
 
(100,000)
 
 
 
 
 
 
 
 
 
 
 
Investment and other
 
 
 
 
 
 
 
13,798,000 
14,340,000 
39,884,000 
40,805,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
38,000 
116,000 
 
 
100,000 
 
 
 
 
 
 
 
 
 
 
 
 
Selling expense
17,082,000 
16,466,000 
49,164,000 
47,774,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
535,000 
900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other assets
 
 
5,053,000 
4,549,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1,700,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for cancellations
 
 
5,123,000 
9,732,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9,732,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility available borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,000,000 
 
 
 
 
 
 
 
 
 
 
Assets held for sale, number of properties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of properties impaired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and equipment, net book value
115,116,000 
 
115,116,000 
 
118,281,000 
900,000 
500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets held for sale
1,169,000 
 
1,169,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,169,000 
281,000 
500,000 
 
900,000 
 
 
 
 
Asset impairment charges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
400,000 
Impairment of assets held for sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
400,000 
 
Goodwill impairment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
$ 70,436,000 
 
$ 70,436,000 
 
$ 70,436,000 
 
 
$ 24,862,000 
 
$ 24,862,000 
 
$ 24,862,000 
 
 
 
 
 
 
$ 45,574,000 
 
$ 45,574,000 
 
$ 45,574,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GENERAL - Restatement Adjustments on Operations (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Total revenues
$ 84,034 
$ 80,773 
$ 252,932 
$ 237,923 
Selling expense
17,082 
16,466 
49,164 
47,774 
Total costs and expenses
86,382 
84,451 
259,442 
242,808 
Net loss
(9,576)
(9,949)
(29,719)
(24,486)
General partner's interest
(99)
(111)
(309)
2,081 
Limited partners' interest
(9,477)
(9,838)
(29,410)
(26,567)
Net loss per limited partner unit (basic and diluted) (in USD per unit)
$ (0.25)
$ (0.28)
$ (0.78)
$ (0.77)
Cemetery
 
 
 
 
Merchandise
40,331 
38,129 
119,229 
110,239 
Services
15,414 
14,260 
46,703 
41,712 
Investment and other
13,798 
14,340 
39,884 
40,805 
Total revenues
69,543 
66,729 
205,816 
192,756 
Funeral Home
 
 
 
 
Merchandise
6,591 
6,708 
21,176 
20,794 
Services
7,900 
7,336 
25,940 
24,373 
Total revenues
14,491 
14,044 
47,116 
45,167 
Services expense
5,442 
6,076 
16,595 
18,687 
As Filed
 
 
 
 
Total revenues
 
78,536 
 
233,747 
Selling expense
 
15,931 
 
46,898 
Total costs and expenses
 
83,910 
 
241,917 
Net loss
 
(11,644)
 
(27,770)
General partner's interest
 
(130)
 
2,043 
Limited partners' interest
 
(11,514)
 
(29,813)
Net loss per limited partner unit (basic and diluted) (in USD per unit)
 
$ (0.32)
 
$ (0.87)
As Filed |
Cemetery
 
 
 
 
Merchandise
 
36,314 
 
106,937 
Services
 
13,928 
 
41,067 
Investment and other
 
14,302 
 
40,689 
As Filed |
Funeral Home
 
 
 
 
Merchandise
 
6,656 
 
20,681 
Services expense
 
6,070 
 
18,672 
Restatement Adjustments
 
 
 
 
Merchandise
 
1,900 
 
3,500 
Total revenues
 
2,200 
 
4,176 
Selling expense
 
535 
 
900 
Total costs and expenses
 
541 
 
891 
Net loss
 
1,695 
 
3,284 
General partner's interest
 
19 
 
38 
Limited partners' interest
 
1,676 
 
3,246 
Net loss per limited partner unit (basic and diluted) (in USD per unit)
 
$ 0.04 
 
$ 0.10 
Restatement Adjustments |
Cemetery
 
 
 
 
Merchandise
 
1,815 
 
3,302 
Services
 
332 
 
645 
Investment and other
 
38 
 
116 
Restatement Adjustments |
Funeral Home
 
 
 
 
Merchandise
 
52 
 
113 
Services expense
 
$ 6 
 
$ 15 
GENERAL - Restatement Adjustments on Cash Flows (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Net loss
$ (29,719)
$ (24,486)
Provision for cancellations
5,123 
9,732 
Changes in assets and liabilities:
 
 
Accounts receivable, net of allowance
(8,576)
(18,899)
Other assets
(5,053)
(4,549)
Deferred selling and obtaining costs
(7,246)
(9,819)
Deferred revenues
(12,119)
49,821 
Payables and other liabilities
14,269 
9,307 
Net cash provided by operating activities
24,701 
18,487 
As Filed
 
 
Net loss
 
(27,770)
Provision for cancellations
 
Changes in assets and liabilities:
 
 
Accounts receivable, net of allowance
 
(9,167)
Other assets
 
(6,270)
Deferred selling and obtaining costs
 
(10,716)
Deferred revenues
 
53,996 
Payables and other liabilities
 
11,034 
Net cash provided by operating activities
 
18,487 
Restatement Adjustments
 
 
Net loss
 
3,284 
Provision for cancellations
 
9,732 
Changes in assets and liabilities:
 
 
Accounts receivable, net of allowance
 
(9,732)
Other assets
 
1,700 
Deferred selling and obtaining costs
 
897 
Deferred revenues
 
(4,175)
Payables and other liabilities
 
(1,727)
Net cash provided by operating activities
 
$ 0 
GENERAL - Assets Held for Sale (Details) (USD $)
Sep. 30, 2017
Dec. 31, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Assets held for sale
$ 1,169,000 
$ 0 
Held-for-sale
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Assets held for sale
1,169,000 
Cemetery property |
Held-for-sale
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Assets held for sale
281,000 
 
Buildings and improvements |
Held-for-sale
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Assets held for sale
718,000 
 
Funeral home land |
Held-for-sale
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Assets held for sale
$ 170,000 
 
GENERAL - Reconciliation of Net Income (Loss) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
 
 
 
Net loss
$ (9,576)
$ (9,949)
$ (29,719)
$ (24,486)
Less: Incentive distribution right (“IDR”) payments to general partner
2,387 
Net loss to allocate to general and common limited partners
(9,576)
(9,949)
(29,719)
(26,873)
Less: General partner’s interest excluding IDRs
(99)
(111)
(309)
(306)
Net loss attributable to common limited partners
$ (9,477)
$ (9,838)
$ (29,410)
$ (26,567)
GENERAL - Reconciliation of Partnership's Weighted Average Number of Common Limited Partner Units (Detail)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
 
 
 
Weighted average number of limited partners' units outstanding (basic and diluted) (in shares)
37,958 
35,470 
37,945 
34,287 
Units excluded from the calculation of diluted weighted average number of limited partners' units, because of their anti-dilutive effect
335 
383 
328 
375 
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE - Schedule of Accounts Receivable, Net of Allowance (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Receivables [Abstract]
 
 
Customer receivables
$ 223,861 
$ 223,326 
Unearned finance income
(20,490)
(21,034)
Allowance for contract cancellations
(25,219)
(26,153)
Accounts receivable, net of allowance
178,152 
176,139 
Less: Current portion, net of allowance
77,058 
77,253 
Long-term portion, net of allowance
$ 101,094 
$ 98,886 
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE - Activity in Allowance for Contract Cancellations (Detail) (USD $)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Allowance for Doubtful Accounts Receivable [Roll Forward]
 
 
 
Balance, beginning of period
 
 
$ 26,153,000 
Balance, end of period
25,219,000 
 
26,153,000 
Contract Cancellations
 
 
 
Allowance for Doubtful Accounts Receivable [Roll Forward]
 
 
 
Balance, beginning of period
26,153,000 
23,985,000 
 
Provision for cancellations
5,123,000 
9,732,000 
 
Cancellations
(6,057,000)
(5,515,000)
 
Balance, end of period
25,219,000 
28,202,000 
 
Deferred revenue
$ 16,900,000 
 
$ 17,400,000 
CEMETERY PROPERTY (Detail) (USD $)
1 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Property, Plant and Equipment [Line Items]
 
 
Cemetery property
$ 334,208,000 
$ 337,315,000 
Loss from hurricanes
500,000 
 
Cemetery land
 
 
Property, Plant and Equipment [Line Items]
 
 
Cemetery property
256,120,000 
257,914,000 
Mausoleum crypts and lawn crypts
 
 
Property, Plant and Equipment [Line Items]
 
 
Cemetery property
$ 78,088,000 
$ 79,401,000 
PROPERTY AND EQUIPMENT (Detail) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Property, Plant and Equipment [Line Items]
 
 
 
 
 
Property and equipment, gross
$ 195,956,000 
 
$ 195,956,000 
 
$ 193,377,000 
Less: Accumulated depreciation
(80,840,000)
 
(80,840,000)
 
(75,096,000)
Property and equipment, net of accumulated depreciation
115,116,000 
 
115,116,000 
 
118,281,000 
Depreciation expense
2,600,000 
2,300,000 
8,300,000 
7,400,000 
 
Buildings and improvements
 
 
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
 
 
Property and equipment, gross
124,551,000 
 
124,551,000 
 
125,442,000 
Furniture and equipment
 
 
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
 
 
Property and equipment, gross
57,170,000 
 
57,170,000 
 
56,408,000 
Funeral home land
 
 
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
 
 
Property and equipment, gross
$ 14,235,000 
 
$ 14,235,000 
 
$ 11,527,000 
MERCHANDISE TRUSTS - Additional Information (Detail) (USD $)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
West Virginia Trust Receivable
 
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
 
Trust assets, fair value
$ 8,900,000 
 
$ 8,600,000 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts
 
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
 
Trust assets, fair value
512,181,000 
 
507,079,000 
Purchases of available for sale securities
298,700,000 
82,600,000 
 
Sales, maturities and paydowns of available for sale securities
297,200,000 
65,900,000 
 
Trust assets, aggregate cost basis
508,062,000 
 
499,078,000 
Other than temporary impairments loss
7,278,000 
 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts |
Other Than Temporarily Impaired Securities
 
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
 
Trust assets, fair value
 
42,700,000 
 
Number of securities with impairment considered to be other-than-temporary
48 
 
Trust assets, aggregate cost basis
 
50,000,000 
 
Other than temporary impairments loss
 
7,300,000 
 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts |
West Virginia Trust Receivable
 
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
 
Trust assets, fair value
8,917,000 
 
8,569,000 
Trust assets, aggregate cost basis
$ 8,917,000 
 
$ 8,569,000 
MERCHANDISE TRUSTS - Reconciliation of Merchandise Trust Activities (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Sep. 30, 2017
Variable Interest Entity, Primary Beneficiary
Merchandise Trusts
Sep. 30, 2016
Variable Interest Entity, Primary Beneficiary
Merchandise Trusts
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
Balance, beginning of period
$ 512,181 
$ 507,079 
$ 507,079 
$ 464,676 
Contributions
 
 
44,497 
49,841 
Distributions
 
 
(65,723)
(49,168)
Interest and dividends
 
 
18,252 
17,657 
Capital gain distributions
 
 
927 
264 
Realized gains and losses
 
 
14,192 
3,727 
Other than temporary impairment
 
 
(7,278)
Taxes
 
 
(1,306)
(1,721)
Fees
 
 
(1,855)
(2,234)
Unrealized change in fair value
 
 
(3,882)
28,840 
Balance, end of period
$ 512,181 
$ 507,079 
$ 512,181 
$ 504,604 
MERCHANDISE TRUSTS - Cost and Market Value Associated with Assets Held in Merchandise Trusts (Detail) (USD $)
9 Months Ended
Sep. 30, 2017
Extension
Dec. 31, 2016
West Virginia Trust Receivable
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair Value
$ 8,900,000 
$ 8,600,000 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
508,062,000 
499,078,000 
Gross Unrealized Gains
10,596,000 
9,455,000 
Gross Unrealized Losses
(6,477,000)
(1,454,000)
Fair Value
512,181,000 
507,079,000 
Private credit funds, lockup periods
7 years 
 
Number of potential lockup period extensions
 
Lockup extension period
1 year 
 
Unfunded commitments to private credit funds, callable at any time
32,400,000 
 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts |
Minimum
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fixed income funds and equity funds, redemption period
30 days 
 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts |
Maximum
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fixed income funds and equity funds, redemption period
90 days 
 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts |
Short-term investments |
Level 1
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
10,874,000 
17,317,000 
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
10,874,000 
17,317,000 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts |
Fixed maturities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
2,514,000 
6,483,000 
Gross Unrealized Gains
142,000 
271,000 
Gross Unrealized Losses
(252,000)
(246,000)
Fair Value
2,404,000 
6,508,000 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts |
Fixed maturities |
U.S. governmental securities |
Level 2
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
206,000 
172,000 
Gross Unrealized Gains
1,000 
2,000 
Gross Unrealized Losses
(64,000)
(44,000)
Fair Value
143,000 
130,000 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts |
Fixed maturities |
Corporate debt securities |
Level 2
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
2,308,000 
6,311,000 
Gross Unrealized Gains
141,000 
269,000 
Gross Unrealized Losses
(188,000)
(202,000)
Fair Value
2,261,000 
6,378,000 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts |
Mutual funds - debt securities |
Level 1
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
249,209,000 
236,159,000 
Gross Unrealized Gains
4,153,000 
1,580,000 
Gross Unrealized Losses
(426,000)
(96,000)
Fair Value
252,936,000 
237,643,000 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts |
Mutual funds - equity securities |
Level 1
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
81,029,000 
126,215,000 
Gross Unrealized Gains
3,412,000 
3,361,000 
Gross Unrealized Losses
(5,001,000)
(533,000)
Fair Value
79,440,000 
129,043,000 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts |
Other investment funds
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
131,010,000 
60,017,000 
Gross Unrealized Gains
169,000 
603,000 
Gross Unrealized Losses
(353,000)
(387,000)
Fair Value
130,826,000 
60,233,000 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts |
Equity securities |
Level 1
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
15,712,000 
35,079,000 
Gross Unrealized Gains
2,720,000 
3,640,000 
Gross Unrealized Losses
(445,000)
(192,000)
Fair Value
17,987,000 
38,527,000 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts |
Other invested assets |
Level 2
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
8,797,000 
9,239,000 
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
8,797,000 
9,239,000 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts |
Total investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
499,145,000 
490,509,000 
Gross Unrealized Gains
10,596,000 
9,455,000 
Gross Unrealized Losses
(6,477,000)
(1,454,000)
Fair Value
503,264,000 
498,510,000 
Variable Interest Entity, Primary Beneficiary |
Merchandise Trusts |
West Virginia Trust Receivable
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
8,917,000 
8,569,000 
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
$ 8,917,000 
$ 8,569,000 
MERCHANDISE TRUSTS - Contractual Maturities of Debt Securities Held in Merchandise Trusts (Detail) (Variable Interest Entity, Primary Beneficiary, Fixed maturities, USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Perpetual care trusts
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
$ 895 
1 year through 5 years
4,781 
6 years through 10 years
506 
More than 10 years
140 
Perpetual care trusts |
U.S. governmental securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
52 
1 year through 5 years
267 
6 years through 10 years
166 
More than 10 years
40 
Perpetual care trusts |
Corporate debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
843 
1 year through 5 years
4,514 
6 years through 10 years
340 
More than 10 years
100 
Merchandise Trusts
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
172 
1 year through 5 years
1,923 
6 years through 10 years
297 
More than 10 years
12 
Merchandise Trusts |
U.S. governmental securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
1 year through 5 years
88 
6 years through 10 years
55 
More than 10 years
Merchandise Trusts |
Corporate debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
172 
1 year through 5 years
1,835 
6 years through 10 years
242 
More than 10 years
$ 12 
MERCHANDISE TRUSTS - Aging of Unrealized Losses on Investments in Fixed Maturities and Equity Securities Held in Merchandise Trusts (Detail) (Variable Interest Entity, Primary Beneficiary, Merchandise Trusts, USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
$ 142,712 
$ 52,720 
12 Months or more Fair Value
2,955 
4,703 
Total Fair Value
145,667 
57,423 
Less than 12 months Unrealized Losses
5,915 
900 
12 Months or more Unrealized Losses
562 
554 
Total Unrealized Losses
6,477 
1,454 
Fixed maturities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
68 
556 
12 Months or more Fair Value
577 
958 
Total Fair Value
645 
1,514 
Less than 12 months Unrealized Losses
12 Months or more Unrealized Losses
251 
240 
Total Unrealized Losses
252 
246 
Fixed maturities |
U.S. governmental securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
12 Months or more Fair Value
123 
87 
Total Fair Value
123 
87 
Less than 12 months Unrealized Losses
12 Months or more Unrealized Losses
64 
44 
Total Unrealized Losses
64 
44 
Fixed maturities |
Corporate debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
68 
556 
12 Months or more Fair Value
454 
871 
Total Fair Value
522 
1,427 
Less than 12 months Unrealized Losses
12 Months or more Unrealized Losses
187 
196 
Total Unrealized Losses
188 
202 
Mutual funds - debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
27,882 
6,040 
12 Months or more Fair Value
1,911 
754 
Total Fair Value
29,793 
6,794 
Less than 12 months Unrealized Losses
142 
61 
12 Months or more Unrealized Losses
284 
35 
Total Unrealized Losses
426 
96 
Mutual funds - equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
50,406 
7,475 
12 Months or more Fair Value
2,578 
Total Fair Value
50,406 
10,053 
Less than 12 months Unrealized Losses
5,001 
357 
12 Months or more Unrealized Losses
176 
Total Unrealized Losses
5,001 
533 
Other investment funds
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
60,896 
37,357 
12 Months or more Fair Value
Total Fair Value
60,896 
37,357 
Less than 12 months Unrealized Losses
353 
387 
12 Months or more Unrealized Losses
Total Unrealized Losses
353 
387 
Equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
3,460 
1,292 
12 Months or more Fair Value
467 
413 
Total Fair Value
3,927 
1,705 
Less than 12 months Unrealized Losses
418 
89 
12 Months or more Unrealized Losses
27 
103 
Total Unrealized Losses
$ 445 
$ 192 
PERPETUAL CARE TRUSTS - Reconciliation of Perpetual Care Trust Activities (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Sep. 30, 2017
Variable Interest Entity, Primary Beneficiary
Perpetual care trusts
Sep. 30, 2016
Variable Interest Entity, Primary Beneficiary
Perpetual care trusts
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
Balance, beginning of period
$ 338,611 
$ 333,780 
$ 333,780 
$ 307,804 
Contributions
 
 
7,156 
13,111 
Distributions
 
 
(13,449)
(10,923)
Interest and dividends
 
 
12,935 
13,609 
Capital gain distributions
 
 
403 
477 
Realized gains and losses
 
 
1,371 
(413)
Other than temporary impairment
 
 
(466)
Taxes
 
 
(420)
(566)
Fees
 
 
(1,095)
(2,189)
Unrealized change in fair value
 
 
(2,070)
14,479 
Balance, end of period
$ 338,611 
$ 333,780 
$ 338,611 
$ 334,923 
PERPETUAL CARE TRUSTS - Additional Information (Detail) (Variable Interest Entity, Primary Beneficiary, Perpetual care trusts, USD $)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Schedule of Available-for-sale Securities [Line Items]
 
 
Purchases of available for sale securities
$ 82,800,000 
$ 256,100,000 
Sales, maturities and paydowns of available for sale securities
68,700,000 
223,300,000 
Other than temporary impairments loss
466,000 
Other Than Temporarily Impaired Securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Trust assets, cost
 
3,400,000 
Trust assets, fair value
 
2,900,000 
Number of securities with impairment considered to be other-than-temporary
18 
Other than temporary impairments loss
 
$ 500,000 
PERPETUAL CARE TRUSTS - Cost and Market Value Associated with Assets Held in Perpetual Care Trusts (Detail) (Variable Interest Entity, Primary Beneficiary, Perpetual care trusts, USD $)
9 Months Ended 12 Months Ended
Sep. 30, 2017
Extension
Dec. 31, 2016
Extension
Schedule of Available-for-sale Securities [Line Items]
 
 
Number of potential lockup period extensions
Lockup extension period
1 year 
1 year 
Unfunded commitments to private credit funds, callable at any time
$ 78,200,000 
$ 45,100,000 
Short-term investments |
Level 1
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
9,195,000 
16,113,000 
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
9,195,000 
16,113,000 
Fixed maturities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
6,338,000 
13,081,000 
Gross Unrealized Gains
171,000 
394,000 
Gross Unrealized Losses
(187,000)
(175,000)
Fair Value
6,322,000 
13,300,000 
Fixed maturities |
U.S. governmental securities |
Level 2
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
560,000 
483,000 
Gross Unrealized Gains
5,000 
14,000 
Gross Unrealized Losses
(40,000)
(23,000)
Fair Value
525,000 
474,000 
Fixed maturities |
Corporate debt securities |
Level 2
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
5,778,000 
12,598,000 
Gross Unrealized Gains
166,000 
380,000 
Gross Unrealized Losses
(147,000)
(152,000)
Fair Value
5,797,000 
12,826,000 
Mutual funds - debt securities |
Level 1
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
156,057,000 
127,033,000 
Gross Unrealized Gains
3,318,000 
1,187,000 
Gross Unrealized Losses
(482,000)
(669,000)
Fair Value
158,893,000 
127,551,000 
Mutual funds - equity securities |
Level 1
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
32,573,000 
30,708,000 
Gross Unrealized Gains
1,374,000 
1,940,000 
Gross Unrealized Losses
(1,470,000)
(26,000)
Fair Value
32,477,000 
32,622,000 
Other investment funds
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
107,563,000 
119,196,000 
Gross Unrealized Gains
2,697,000 
2,672,000 
Gross Unrealized Losses
(1,065,000)
(622,000)
Fair Value
109,195,000 
121,246,000 
Equity securities |
Level 1
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
22,389,000 
20,978,000 
Gross Unrealized Gains
1,701,000 
2,150,000 
Gross Unrealized Losses
(1,707,000)
(432,000)
Fair Value
22,383,000 
22,696,000 
Other invested assets |
Level 2
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
146,000 
252,000 
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
146,000 
252,000 
Total investments
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Cost
334,261,000 
327,361,000 
Gross Unrealized Gains
9,261,000 
8,343,000 
Gross Unrealized Losses
(4,911,000)
(1,924,000)
Fair Value
$ 338,611,000 
$ 333,780,000 
Minimum
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fixed income funds and equity funds, redemption period
30 days 
30 days 
Private credit funds, lockup periods
5 years 
6 years 
Maximum
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fixed income funds and equity funds, redemption period
90 days 
90 days 
Private credit funds, lockup periods
10 years 
10 years 
PERPETUAL CARE TRUSTS - Contractual Maturities of Debt Securities Held in Perpetual Care Trusts (Detail) (Variable Interest Entity, Primary Beneficiary, Perpetual care trusts, Fixed maturities, USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
$ 895 
1 year through 5 years
4,781 
6 years through 10 years
506 
More than 10 years
140 
U.S. governmental securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
52 
1 year through 5 years
267 
6 years through 10 years
166 
More than 10 years
40 
Corporate debt securities
 
Investments Classified by Contractual Maturity Date [Line Items]
 
Less than 1 year
843 
1 year through 5 years
4,514 
6 years through 10 years
340 
More than 10 years
$ 100 
PERPETUAL CARE TRUSTS - Aging of Unrealized Losses on Investments in Fixed Maturities and Equity Securities Held in Perpetual Care Trusts (Detail) (Variable Interest Entity, Primary Beneficiary, Perpetual care trusts, USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
$ 97,121 
$ 70,718 
Less than 12 months Unrealized Losses
4,456 
1,677 
12 Months or more Fair Value
10,582 
5,768 
12 Months or more Unrealized Losses
455 
247 
Total Fair Value
107,703 
76,486 
Total Unrealized Losses
4,911 
1,924 
Fixed maturities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
659 
747 
Less than 12 months Unrealized Losses
12 
10 
12 Months or more Fair Value
2,096 
3,263 
12 Months or more Unrealized Losses
175 
165 
Total Fair Value
2,755 
4,010 
Total Unrealized Losses
187 
175 
Fixed maturities |
U.S. governmental securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
Less than 12 months Unrealized Losses
12 Months or more Fair Value
456 
283 
12 Months or more Unrealized Losses
40 
23 
Total Fair Value
456 
283 
Total Unrealized Losses
40 
23 
Fixed maturities |
Corporate debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
659 
747 
Less than 12 months Unrealized Losses
12 
10 
12 Months or more Fair Value
1,640 
2,980 
12 Months or more Unrealized Losses
135 
142 
Total Fair Value
2,299 
3,727 
Total Unrealized Losses
147 
152 
Mutual funds - debt securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
15,678 
24,026 
Less than 12 months Unrealized Losses
235 
620 
12 Months or more Fair Value
8,408 
1,908 
12 Months or more Unrealized Losses
247 
49 
Total Fair Value
24,086 
25,934 
Total Unrealized Losses
482 
669 
Mutual funds - equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
15,381 
3,836 
Less than 12 months Unrealized Losses
1,458 
16 
12 Months or more Fair Value
41 
452 
12 Months or more Unrealized Losses
12 
10 
Total Fair Value
15,422 
4,288 
Total Unrealized Losses
1,470 
26 
Other investment funds
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
56,165 
37,577 
Less than 12 months Unrealized Losses
1,065 
622 
12 Months or more Fair Value
12 Months or more Unrealized Losses
Total Fair Value
56,165 
37,577 
Total Unrealized Losses
1,065 
622 
Equity securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than 12 months Fair Value
9,238 
4,532 
Less than 12 months Unrealized Losses
1,686 
409 
12 Months or more Fair Value
37 
145 
12 Months or more Unrealized Losses
21 
23 
Total Fair Value
9,275 
4,677 
Total Unrealized Losses
$ 1,707 
$ 432 
LONG-TERM DEBT - Outstanding Debt (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Debt Instrument [Line Items]
 
 
Less deferred financing costs, net of accumulated amortization
$ (10,451)
$ (10,859)
Total debt
307,686 
302,126 
Less current maturities
(1,114)
(1,775)
Total long-term debt
306,572 
300,351 
Credit facility
 
 
Debt Instrument [Line Items]
 
 
Long-term debt, gross
142,925 
137,125 
Senior Notes |
7.875% notes, due 2021
 
 
Debt Instrument [Line Items]
 
 
Long-term debt, gross
172,975 
172,623 
Notes Payable, other Payables |
Acquisitions Debt
 
 
Debt Instrument [Line Items]
 
 
Long-term debt, gross
354 
502 
Notes Payable, other Payables |
Acquisition non-competes
 
 
Debt Instrument [Line Items]
 
 
Long-term debt, gross
395 
928 
Insurance and vehicle financing
 
 
Debt Instrument [Line Items]
 
 
Long-term debt, gross
$ 1,488 
$ 1,807 
LONG-TERM DEBT - Additional Information (Detail) (USD $)
9 Months Ended 0 Months Ended 9 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 3 Months Ended
Sep. 30, 2017
Aug. 4, 2016
Sep. 30, 2017
7.875% senior notes, due 2021
Sep. 30, 2017
Revolving Credit Facility
Aug. 4, 2016
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
May 28, 2013
10.25% Senior Notes, due 2017
Senior Notes
Sep. 30, 2017
Credit Agreement
Sep. 30, 2017
Credit Agreement
Credit facility
Quarter
Aug. 4, 2016
Credit Agreement
Revolving Credit Facility
Sep. 30, 2017
Credit Agreement
Letter of Credit
Dec. 31, 2016
Credit Agreement
Letter of Credit
Aug. 4, 2016
Credit Agreement
Letter of Credit
Sep. 30, 2017
Credit Agreement
Base Rate
Credit facility
Sep. 30, 2017
Credit Agreement
Eurodollar
Credit facility
Sep. 30, 2017
Credit Agreement
Minimum
Credit facility
Aug. 4, 2016
Credit Agreement
Minimum
Revolving Credit Facility
Sep. 30, 2017
Credit Agreement
Minimum
Base Rate
Credit facility
Sep. 30, 2017
Credit Agreement
Minimum
Eurodollar
Credit facility
Sep. 30, 2017
Credit Agreement
Maximum
Credit facility
Aug. 4, 2016
Credit Agreement
Maximum
Revolving Credit Facility
Sep. 30, 2017
Credit Agreement
Maximum
Base Rate
Credit facility
Sep. 30, 2017
Credit Agreement
Maximum
Eurodollar
Credit facility
Dec. 31, 2017
Subsequent Event
Maximum
Jan. 1, 2019
Subsequent Event
Credit Agreement
Credit facility
Dec. 31, 2018
Subsequent Event
Credit Agreement
Credit facility
Jan. 1, 2019
Subsequent Event
Credit Agreement
Maximum
Credit facility
Dec. 31, 2017
Forecast
Subsequent Event
Fourth amendment to credit agreement
Maximum
Debt Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership percentage
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility, maximum borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
$ 200,000,000 
 
 
$ 15,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit, additional borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,000,000.0 
 
 
 
100,000,000.0 
 
 
 
 
 
 
 
Line of credit outstanding amount
 
 
 
 
 
 
 
 
 
 
142,900,000 
 
 
7,500,000 
6,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt premium percentage
 
 
 
 
7.875% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility available borrowing capacity
 
 
 
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility, basis spread on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.75% 
3.75% 
 
 
0.75% 
1.75% 
 
 
2.75% 
3.75% 
 
 
 
 
 
Weighted average interest rate on outstanding borrowings
 
 
 
 
 
 
 
 
 
 
 
5.10% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt covenant, number of consecutive quarters for calculating consolidated leverage ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt covenant, consolidated leverage ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.50 
 
 
 
3.75 
 
 
 
 
4.00 
4.25 
4.50 
4.50 
Debt covenant, consolidated debt service coverage ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.50 
 
 
 
 
 
 
 
 
Debt covenant, ratio of consolidated EBITDA to consolidated fixed charges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.20 
 
 
 
 
Consolidated leverage ratio
446.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated debt service coverage ratio
299.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, principal amount
 
 
 
 
 
175,000,000 
 
 
 
150,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, interest rate
 
 
 
 
 
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 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase price as percentage of principal plus accrued and unpaid interest, Upon occurrence of change of control
 
 
101.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LONG-TERM DEBT - Redemption Prices Expressed as Percentages of Principal Amount (Detail) (7.875% senior notes, due 2021)
9 Months Ended
Sep. 30, 2017
Debt Instrument, Redemption, 2017
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
103.938% 
Debt Instrument, Redemption, 2018
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
101.969% 
Debt Instrument, Redemption, 2019 and thereafter
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
100.00% 
DEFERRED REVENUES (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Deferred Revenue Arrangement [Line Items]
 
 
Deferred merchandise trust unrealized gains
$ 4,116 
$ 8,001 
Deferred revenues
903,853 
866,633 
Deferred selling and obtaining costs
124,137 
116,890 
Merchandise Trusts
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenues
100,185 
76,512 
Contract Revenues
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenues
$ 799,552 
$ 782,120 
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Other gains (losses), net
Mar. 31, 2016
Other gains (losses), net
Sep. 30, 2016
Other gains (losses), net
Commitments and Contingencies [Line Items]
 
 
 
 
Relocation expenses
 
$ 1.9 
$ 0.5 
$ 2.4 
Aggregate fixed rent payment to landlord
36.0 
 
 
 
Deferred fix rent for lease
$ 6.0 
 
 
 
COMMITMENTS AND CONTINGENCIES - Fixed Rent for Cemeteries (Detail) (USD $)
9 Months Ended
Sep. 30, 2017
Lease Years 1-5 (May 28, 2014 - May 31, 2019)
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
$ 0 
Lease Years 6-20 (June 1, 2019 - May 31, 2034)
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
1,000,000 
Lease Years 21-25 (June 1, 2034 - May 31, 2039)
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
1,200,000 
Lease Years 26-35 (June 1, 2039 - May 31, 2049)
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
1,500,000 
Lease Years 36-60 (June 1, 2049 - May 31, 2074)
 
Management Agreement Future Minimum Payments Due [Line Items]
 
Fixed rent for cemeteries, per lease year
$ 0 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Detail) (USD $)
9 Months Ended 3 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Jun. 30, 2017
Level 3
Sep. 30, 2017
Senior Notes
Level 2
Dec. 31, 2016
Senior Notes
Level 2
Sep. 30, 2017
Credit facility
Maximum
Jun. 30, 2017
As Filed
Level 3
Jun. 30, 2017
Restatement Adjustments
Level 3
Sep. 30, 2017
Held-for-sale
Dec. 31, 2016
Held-for-sale
Sep. 30, 2017
Impaired funeral homes
Held-for-sale
Jun. 29, 2017
Impaired funeral homes
Held-for-sale
Jun. 30, 2017
Other gains (losses), net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes payable, fair value
 
 
 
$ 170,000,000 
$ 168,000,000 
 
 
 
 
 
 
 
 
Notes payable, carrying value
 
 
 
173,000,000 
172,600,000 
 
 
 
 
 
 
 
 
Debt instrument maturity term
 
 
 
 
 
90 days 
 
 
 
 
 
 
 
Assets held for sale, fair value
 
 
1,200,000 
 
 
 
2,100,000 
900,000 
 
 
 
 
 
Assets held for sale
1,169,000 
 
 
 
 
 
 
1,169,000 
500,000 
900,000 
 
Impairment of assets held for sale
 
 
 
 
 
 
 
 
 
 
 
 
$ 400,000 
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Balance Sheets (Detail) (USD $)
Sep. 30, 2017
Dec. 31, 2016
Sep. 30, 2016
Dec. 31, 2015
Current assets:
 
 
 
 
Cash and cash equivalents
$ 8,460,000 
$ 12,570,000 
$ 15,610,000 
$ 15,153,000 
Assets held for sale
1,169,000 
 
 
Other current assets
109,531,000 
106,251,000 
 
 
Total current assets
119,160,000 
118,821,000 
 
 
Long-term accounts receivable
101,094,000 
98,886,000 
 
 
Cemetery property and equipment
449,324,000 
455,596,000 
 
 
Merchandise trusts
512,181,000 
507,079,000 
 
 
Perpetual care trusts
338,611,000 
333,780,000 
 
 
Deferred selling and obtaining costs
124,137,000 
116,890,000 
 
 
Goodwill and intangible assets
134,176,000 
135,874,000 
 
 
Other assets
20,671,000 
20,087,000 
 
 
Investments in and amounts due from affiliates eliminated upon consolidation
 
 
Total assets
1,799,354,000 
1,787,013,000 
 
 
Liabilities and Equity
 
 
 
 
Current liabilities
53,430,000 
38,893,000 
 
 
Long-term debt, net of deferred financing costs
306,572,000 
300,351,000 
 
 
Deferred revenues
903,853,000 
866,633,000 
 
 
Perpetual care trust corpus
338,611,000 
333,780,000 
 
 
Other long-term liabilities
60,142,000 
57,002,000 
 
 
Due to affiliates
 
 
Total liabilities
1,662,608,000 
1,596,659,000 
 
 
Partners' capital
136,746,000 
190,354,000 
 
 
Total liabilities and partners' capital
1,799,354,000 
1,787,013,000 
 
 
Eliminations
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
Assets held for sale
 
 
 
Other current assets
 
 
Total current assets
 
 
Long-term accounts receivable
 
 
Cemetery property and equipment
 
 
Merchandise trusts
 
 
Perpetual care trusts
 
 
Deferred selling and obtaining costs
 
 
Goodwill and intangible assets
 
 
Other assets
 
 
Investments in and amounts due from affiliates eliminated upon consolidation
(887,210,000)
(997,932,000)
 
 
Total assets
(887,210,000)
(997,932,000)
 
 
Liabilities and Equity
 
 
 
 
Current liabilities
 
 
Long-term debt, net of deferred financing costs
 
 
Deferred revenues
 
 
Perpetual care trust corpus
 
 
Other long-term liabilities
 
 
Due to affiliates
(747,960,000)
(754,050,000)
 
 
Total liabilities
(747,960,000)
(754,050,000)
 
 
Partners' capital
(139,250,000)
(243,882,000)
 
 
Total liabilities and partners' capital
(887,210,000)
(997,932,000)
 
 
Parent
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
Assets held for sale
 
 
 
Other current assets
 
 
Total current assets
 
 
Long-term accounts receivable
 
 
Cemetery property and equipment
 
 
Merchandise trusts
 
 
Perpetual care trusts
 
 
Deferred selling and obtaining costs
 
 
Goodwill and intangible assets
 
 
Other assets
 
 
Investments in and amounts due from affiliates eliminated upon consolidation
204,948,000 
258,417,000 
 
 
Total assets
204,948,000 
258,417,000 
 
 
Liabilities and Equity
 
 
 
 
Current liabilities
 
 
Long-term debt, net of deferred financing costs
68,202,000 
68,063,000 
 
 
Deferred revenues
 
 
Perpetual care trust corpus
 
 
Other long-term liabilities
 
 
Due to affiliates
 
 
Total liabilities
68,202,000 
68,063,000 
 
 
Partners' capital
136,746,000 
190,354,000 
 
 
Total liabilities and partners' capital
204,948,000 
258,417,000 
 
 
Subsidiary Issuer
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
Assets held for sale
 
 
 
Other current assets
3,877,000 
4,567,000 
 
 
Total current assets
3,877,000 
4,567,000 
 
 
Long-term accounts receivable
2,062,000 
1,725,000 
 
 
Cemetery property and equipment
790,000 
930,000 
 
 
Merchandise trusts
 
 
Perpetual care trusts
 
 
Deferred selling and obtaining costs
6,055,000 
5,668,000 
 
 
Goodwill and intangible assets
 
 
Other assets
 
 
Investments in and amounts due from affiliates eliminated upon consolidation
122,924,000 
182,060,000 
 
 
Total assets
135,708,000 
194,950,000 
 
 
Liabilities and Equity
 
 
 
 
Current liabilities
113,000 
320,000 
 
 
Long-term debt, net of deferred financing costs
104,774,000 
104,560,000 
 
 
Deferred revenues
33,588,000 
30,321,000 
 
 
Perpetual care trust corpus
 
 
Other long-term liabilities
 
 
Due to affiliates
 
 
Total liabilities
138,475,000 
135,201,000 
 
 
Partners' capital
(2,767,000)
59,749,000 
 
 
Total liabilities and partners' capital
135,708,000 
194,950,000 
 
 
Guarantor Subsidiaries
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
5,614,000 
9,145,000 
12,185,000 
11,801,000 
Assets held for sale
1,169,000 
 
 
 
Other current assets
88,438,000 
83,765,000 
 
 
Total current assets
95,221,000 
92,910,000 
 
 
Long-term accounts receivable
85,867,000 
83,993,000 
 
 
Cemetery property and equipment
413,445,000 
420,077,000 
 
 
Merchandise trusts
 
 
Perpetual care trusts
 
 
Deferred selling and obtaining costs
96,891,000 
91,252,000 
 
 
Goodwill and intangible assets
72,129,000 
72,963,000 
 
 
Other assets
17,873,000 
17,244,000 
 
 
Investments in and amounts due from affiliates eliminated upon consolidation
559,338,000 
557,455,000 
 
 
Total assets
1,340,764,000 
1,335,894,000 
 
 
Liabilities and Equity
 
 
 
 
Current liabilities
52,046,000 
38,336,000 
 
 
Long-term debt, net of deferred financing costs
133,596,000 
127,728,000 
 
 
Deferred revenues
766,644,000 
738,184,000 
 
 
Perpetual care trust corpus
 
 
Other long-term liabilities
46,252,000 
45,802,000 
 
 
Due to affiliates
172,976,000 
172,623,000 
 
 
Total liabilities
1,171,514,000 
1,122,673,000 
 
 
Partners' capital
169,250,000 
213,221,000 
 
 
Total liabilities and partners' capital
1,340,764,000 
1,335,894,000 
 
 
Non-Guarantor Subsidiaries
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
2,846,000 
3,425,000 
3,425,000 
3,352,000 
Assets held for sale
 
 
 
Other current assets
17,216,000 
17,919,000 
 
 
Total current assets
20,062,000 
21,344,000 
 
 
Long-term accounts receivable
13,165,000 
13,168,000 
 
 
Cemetery property and equipment
35,089,000 
34,589,000 
 
 
Merchandise trusts
512,181,000 
507,079,000 
 
 
Perpetual care trusts
338,611,000 
333,780,000 
 
 
Deferred selling and obtaining costs
21,191,000 
19,970,000 
 
 
Goodwill and intangible assets
62,047,000 
62,911,000 
 
 
Other assets
2,798,000 
2,843,000 
 
 
Investments in and amounts due from affiliates eliminated upon consolidation
 
 
Total assets
1,005,144,000 
995,684,000 
 
 
Liabilities and Equity
 
 
 
 
Current liabilities
1,271,000 
237,000 
 
 
Long-term debt, net of deferred financing costs
 
 
Deferred revenues
103,621,000 
98,128,000 
 
 
Perpetual care trust corpus
338,611,000 
333,780,000 
 
 
Other long-term liabilities
13,890,000 
11,200,000 
 
 
Due to affiliates
574,984,000 
581,427,000 
 
 
Total liabilities
1,032,377,000 
1,024,772,000 
 
 
Partners' capital
(27,233,000)
(29,088,000)
 
 
Total liabilities and partners' capital
$ 1,005,144,000 
$ 995,684,000 
 
 
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Statements of Operations (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Total revenues
$ 84,034 
$ 80,773 
$ 252,932 
$ 237,923 
Total costs and expenses
(86,382)
(84,451)
(259,442)
(242,808)
Other gains (losses), net
338 
(506)
(733)
(1,579)
Net loss from equity investment in subsidiaries
Interest expense
(6,944)
(5,934)
(20,391)
(17,431)
Net income (loss) before income taxes
(8,954)
(10,118)
(27,634)
(23,895)
Income tax benefit (expense)
(622)
169 
(2,085)
(591)
Net income (loss)
(9,576)
(9,949)
(29,719)
(24,486)
Eliminations
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Total revenues
(1,879)
(4,456)
(6,565)
(9,188)
Total costs and expenses
1,879 
4,456 
6,565 
9,188 
Other gains (losses), net
Net loss from equity investment in subsidiaries
16,892 
16,249 
52,779 
42,050 
Interest expense
Net income (loss) before income taxes
16,892 
16,249 
52,779 
42,050 
Income tax benefit (expense)
Net income (loss)
16,892 
16,249 
52,779 
42,050 
Parent
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Total revenues
Total costs and expenses
Other gains (losses), net
Net loss from equity investment in subsidiaries
(8,218)
(8,591)
(25,644)
(20,411)
Interest expense
(1,358)
(1,358)
(4,075)
(4,075)
Net income (loss) before income taxes
(9,576)
(9,949)
(29,719)
(24,486)
Income tax benefit (expense)
Net income (loss)
(9,576)
(9,949)
(29,719)
(24,486)
Subsidiary Issuer
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Total revenues
1,842 
2,312 
5,381 
5,279 
Total costs and expenses
(2,883)
(3,098)
(10,090)
(8,212)
Other gains (losses), net
Net loss from equity investment in subsidiaries
(8,674)
(7,658)
(27,135)
(21,639)
Interest expense
(2,087)
(2,087)
(6,261)
(6,261)
Net income (loss) before income taxes
(11,802)
(10,531)
(38,105)
(30,833)
Income tax benefit (expense)
Net income (loss)
(11,802)
(10,531)
(38,105)
(30,833)
Guarantor Subsidiaries
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Total revenues
69,423 
69,293 
209,331 
199,458 
Total costs and expenses
(71,234)
(69,725)
(214,855)
(201,512)
Other gains (losses), net
338 
(506)
(733)
(1,579)
Net loss from equity investment in subsidiaries
Interest expense
(3,264)
(2,295)
(9,366)
(6,515)
Net income (loss) before income taxes
(4,737)
(3,233)
(15,623)
(10,148)
Income tax benefit (expense)
(622)
169 
(2,085)
(591)
Net income (loss)
(5,359)
(3,064)
(17,708)
(10,739)
Non-Guarantor Subsidiaries
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Total revenues
14,648 
13,624 
44,785 
42,374 
Total costs and expenses
(14,144)
(16,084)
(41,062)
(42,272)
Other gains (losses), net
Net loss from equity investment in subsidiaries
Interest expense
(235)
(194)
(689)
(580)
Net income (loss) before income taxes
269 
(2,654)
3,034 
(478)
Income tax benefit (expense)
Net income (loss)
269 
(2,654)
3,034 
(478)
Restatement Adjustments
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Total revenues
 
2,200 
 
4,176 
Total costs and expenses
 
(541)
 
(891)
Net income (loss)
 
1,695 
 
3,284 
Restatement Adjustments |
Guarantor Subsidiaries
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Total revenues
 
(1,400)
 
(3,600)
Total costs and expenses
 
1,400 
 
3,400 
Restatement Adjustments |
Non-Guarantor Subsidiaries
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Total revenues
 
1,400 
 
3,600 
Total costs and expenses
 
$ (1,400)
 
$ (3,400)
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Cash Flows (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Condensed Financial Statements, Captions [Line Items]
 
 
Net cash provided by operating activities
$ 24,701 
$ 18,487 
Cash Flows From Investing Activities:
 
 
Cash paid for acquisitions and capital expenditures, net of proceeds from divestitures and asset sales
(6,858)
(18,309)
Payments to affiliates
 
Net cash used in investing activities
(6,858)
(18,309)
Cash Flows From Financing Activities:
 
 
Cash distributions
(24,545)
(68,062)
Payments to affiliates
Net borrowings and repayments of debt
4,165 
168 
Proceeds from issuance of common units, net of costs
74,535 
Other financing activities
(1,573)
(6,362)
Net cash provided by (used in) financing activities
(21,953)
279 
Net increase (decrease) in cash and cash equivalents
(4,110)
457 
Cash and cash equivalents - Beginning of period
12,570 
15,153 
Cash and cash equivalents - End of period
8,460 
15,610 
Eliminations
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Net cash provided by operating activities
(34,881)
(12,960)
Cash Flows From Investing Activities:
 
 
Cash paid for acquisitions and capital expenditures, net of proceeds from divestitures and asset sales
Payments to affiliates
 
9,097 
Net cash used in investing activities
9,097 
Cash Flows From Financing Activities:
 
 
Cash distributions
Payments to affiliates
34,881 
3,863 
Net borrowings and repayments of debt
Proceeds from issuance of common units, net of costs
 
Other financing activities
Net cash provided by (used in) financing activities
34,881 
3,863 
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - Beginning of period
Cash and cash equivalents - End of period
Parent
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Net cash provided by operating activities
24,545 
2,624 
Cash Flows From Investing Activities:
 
 
Cash paid for acquisitions and capital expenditures, net of proceeds from divestitures and asset sales
Payments to affiliates
 
(9,097)
Net cash used in investing activities
(9,097)
Cash Flows From Financing Activities:
 
 
Cash distributions
(24,545)
(68,062)
Payments to affiliates
Net borrowings and repayments of debt
Proceeds from issuance of common units, net of costs
 
74,535 
Other financing activities
Net cash provided by (used in) financing activities
(24,545)
6,473 
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - Beginning of period
Cash and cash equivalents - End of period
Subsidiary Issuer
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Net cash provided by operating activities
57 
86 
Cash Flows From Investing Activities:
 
 
Cash paid for acquisitions and capital expenditures, net of proceeds from divestitures and asset sales
(57)
(86)
Payments to affiliates
 
Net cash used in investing activities
(57)
(86)
Cash Flows From Financing Activities:
 
 
Cash distributions
Payments to affiliates
Net borrowings and repayments of debt
Proceeds from issuance of common units, net of costs
 
Other financing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - Beginning of period
Cash and cash equivalents - End of period
Guarantor Subsidiaries
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Net cash provided by operating activities
34,863 
26,260 
Cash Flows From Investing Activities:
 
 
Cash paid for acquisitions and capital expenditures, net of proceeds from divestitures and asset sales
(6,105)
(15,819)
Payments to affiliates
 
Net cash used in investing activities
(6,105)
(15,819)
Cash Flows From Financing Activities:
 
 
Cash distributions
Payments to affiliates
(34,881)
(3,863)
Net borrowings and repayments of debt
4,165 
168 
Proceeds from issuance of common units, net of costs
 
Other financing activities
(1,573)
(6,362)
Net cash provided by (used in) financing activities
(32,289)
(10,057)
Net increase (decrease) in cash and cash equivalents
(3,531)
384 
Cash and cash equivalents - Beginning of period
9,145 
11,801 
Cash and cash equivalents - End of period
5,614 
12,185 
Non-Guarantor Subsidiaries
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Net cash provided by operating activities
117 
2,477 
Cash Flows From Investing Activities:
 
 
Cash paid for acquisitions and capital expenditures, net of proceeds from divestitures and asset sales
(696)
(2,404)
Payments to affiliates
 
Net cash used in investing activities
(696)
(2,404)
Cash Flows From Financing Activities:
 
 
Cash distributions
Payments to affiliates
Net borrowings and repayments of debt
Proceeds from issuance of common units, net of costs
 
Other financing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
(579)
73 
Cash and cash equivalents - Beginning of period
3,425 
3,352 
Cash and cash equivalents - End of period
2,846 
3,425 
Restatement Adjustments
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Net cash provided by operating activities
 
Restatement Adjustments |
Guarantor Subsidiaries
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Net cash provided by operating activities
 
(900)
Restatement Adjustments |
Non-Guarantor Subsidiaries
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Net cash provided by operating activities
 
$ 900 
ISSUANCES OF LIMITED PARTNER UNITS (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2017
Outstanding Common Units
 
 
Limited Partners' Capital Account [Line Items]
 
 
Issuance of common units (in units)
78,342 
Common Limited Partners
 
 
Limited Partners' Capital Account [Line Items]
 
 
Proceeds from issuance of common units, net
 
$ 0.7 
SEGMENT INFORMATION (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Segment
Sep. 30, 2016
Dec. 31, 2016
Segment Reporting Information [Line Items]
 
 
 
 
 
Number of reportable segments
 
 
 
 
Revenues
$ 84,034 
$ 80,773 
$ 252,932 
$ 237,923 
 
Depreciation and amortization
(3,186)
(2,927)
(10,032)
(9,147)
 
Segment income
9,797 
6,557 
33,477 
25,899 
 
Corporate overhead
(11,887)
(10,058)
(39,058)
(30,106)
 
Corporate depreciation and amortization
(258)
(177)
(929)
(678)
 
Other gains (losses), net
338 
(506)
(733)
(1,579)
 
Interest expense
(6,944)
(5,934)
(20,391)
(17,431)
 
Income tax benefit (expense)
(622)
169 
(2,085)
(591)
 
Net loss
(9,576)
(9,949)
(29,719)
(24,486)
 
Capital expenditures
4,649 
2,151 
7,960 
9,655 
 
Assets
1,799,354 
 
1,799,354 
 
1,787,013 
Goodwill
70,436 
 
70,436 
 
70,436 
Cemetery
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
69,543 
66,729 
205,816 
192,756 
 
Operating costs and expenses
(58,728)
(57,635)
(172,903)
(163,243)
 
Depreciation and amortization
(2,175)
(2,058)
(6,734)
(6,042)
 
Segment income
8,640 
7,036 
26,179 
23,471 
 
Goodwill
24,862 
 
24,862 
 
24,862 
Funeral Home
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
14,491 
14,044 
47,116 
45,167 
 
Operating costs and expenses
(12,581)
(13,831)
(37,449)
(40,312)
 
Depreciation and amortization
(753)
(692)
(2,369)
(2,427)
 
Segment income
1,157 
(479)
7,298 
2,428 
 
Goodwill
45,574 
 
45,574 
 
45,574 
Operating Segments |
Cemetery
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Capital expenditures
4,525 
1,696 
7,501 
6,328 
 
Assets
1,585,369 
 
1,585,369 
 
1,573,494 
Operating Segments |
Funeral Home
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Capital expenditures
76 
305 
203 
800 
 
Assets
200,626 
 
200,626 
 
198,200 
Corporate
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Capital expenditures
48 
150 
256 
2,527 
 
Assets
$ 13,359 
 
$ 13,359 
 
$ 15,319 
SUPPLEMENTAL CONDENSED CONSOLIDATED CASH FLOW INFORMATION (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Supplemental Cash Flow Elements [Abstract]
 
 
Pre-need/at-need contract originations (sales on credit)
$ (78,419)
$ (88,502)
Cash receipts from sales on credit (post-origination)
69,843 
69,603 
Changes in Accounts receivable, net of allowance
(8,576)
(18,899)
Deferrals:
 
 
Cash receipts from customer deposits at origination, net of refunds
113,177 
114,215 
Withdrawals of realized income from merchandise trusts during the period
10,592 
10,114 
Pre-need/at-need contract originations (sales on credit)
78,419 
88,502 
Undistributed merchandise trust investment earnings (losses), net
(32,299)
8,034 
Recognition:
 
 
Merchandise trust investment income, net withdrawn as of end of period
(7,851)
(4,203)
Recognized maturities of customer contracts collected as of end of period
(148,630)
(138,999)
Recognized maturities of customer contracts uncollected as of end of period
(25,527)
(27,842)
Changes in Deferred revenues
$ (12,119)
$ 49,821 
SUBSEQUENT EVENTS (Details) (Subsequent Event, USD $)
In Millions, unless otherwise specified
0 Months Ended
Jan. 19, 2018
Jan. 19, 2018
Property
Subsequent Event
 
 
Subsequent Event [Line Items]
 
 
Number of properties acquired
 
Consideration to acquire properties
$ 2.5 
 
Cash payment to acquire properties
$ 0.8