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Preneed Activities (Notes) | 9 Months Ended
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Sep. 30, 2017
Preneed Activities [Abstract] |
Preneed Activities | 3. Preneed Activities Preneed receivables, net and trust investments The components of Preneed receivables, net and trust investments in our unaudited condensed Consolidated Balance Sheet at September 30, 2017 and December 31, 2016 are as follows:
| September 30, 2017 |  | December 31, 2016
| (In thousands)
Preneed funeral receivables | $ | 331,917 |  |  | $ | 312,556 |
Preneed cemetery receivables | 1,099,795 |  |  | 1,038,592 |
Preneed receivables from customers | 1,431,712 |  |  | 1,351,148 |
Unearned finance charge | (45,751 | ) |  | (45,989 | )
Allowance for cancellation | (108,635 | ) |  | (104,740 | )
Preneed receivables, net | $ | 1,277,326 |  |  | $ | 1,200,419 |
Trust investments, at market | $ | 4,343,081 |  |  | $ | 3,936,908 |
Cash held in trust | 282,594 |  |  | 304,055 |
Assets associated with businesses held for sale | (2,680 | ) |  | — |
Insurance-backed fixed income securities and other | 267,465 |  |  | 271,248 |
Trust investments | 4,890,460 |  |  | 4,512,211 |
Less: Cemetery perpetual care trust investments | (1,490,201 | ) |  | (1,407,465 | )
Preneed trust investments | $ | 3,400,259 |  |  | $ | 3,104,746 |
Preneed receivables, net and trust investments | $ | 4,677,585 |  |  | $ | 4,305,165 |
The table below sets forth certain investment-related activities associated with our trusts:
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
| (In thousands) |  | (In thousands)
Deposits | $ | 86,028 |  |  | $ | 82,286 |  |  | $ | 277,286 |  |  | $ | 243,957 |
Withdrawals | $ | 99,872 |  |  | $ | 90,156 |  |  | $ | 297,595 |  |  | $ | 260,199 |
Purchases of available-for-sale securities | $ | 886,732 |  |  | $ | 500,577 |  |  | $ | 1,792,190 |  |  | $ | 1,142,873 |
Sales of available-for-sale securities | $ | 509,675 |  |  | $ | 490,945 |  |  | $ | 1,742,860 |  |  | $ | 1,092,912 |
The costs and values associated with trust investments recorded at fair value at September 30, 2017 and December 31, 2016 are detailed below. Cost reflects the investment (net of redemptions) of control holders in the trusts. Fair value represents the value of the underlying securities held by the trusts.
| September 30, 2017
| Value Hierarchy Level |  | Cost |  | Unrealized Gains |  | Unrealized Losses |  | Value
|  |  |  |  | (In thousands) |  |
Fixed income securities: |  |  |  |  |  |  |  |  |
U.S. Treasury | 2 |  | $ | 24,704 |  |  | $ | 25 |  |  | $ | (12 | ) |  | $ | 24,717 |
Canadian government | 2 |  | 84,387 |  |  | 182 |  |  | (904 | ) |  | 83,665 |
Corporate | 2 |  | 16,720 |  |  | 374 |  |  | (139 | ) |  | 16,955 |
Residential mortgage-backed | 2 |  | 427 |  |  | 16 |  |  | (1 | ) |  | 442 |
Asset-backed | 2 |  | 317 |  |  | 18 |  |  | (7 | ) |  | 328 |
Equity securities: |  |  |  |  |  |  |  |  |
Preferred stock | 2 |  | 8,127 |  |  | 166 |  |  | (159 | ) |  | 8,134 |
Common stock: |  |  |  |  |  |  |  |  |
United States | 1 |  | 1,184,510 |  |  | 213,024 |  |  | (22,703 | ) |  | 1,374,831 |
Canada | 1 |  | 33,167 |  |  | 11,612 |  |  | (942 | ) |  | 43,837 |
Other international | 1 |  | 57,114 |  |  | 13,546 |  |  | (1,137 | ) |  | 69,523 |
Mutual funds: |  |  |  |  |  |  |  |  |
Equity | 1 |  | 607,088 |  |  | 56,277 |  |  | (6,304 | ) |  | 657,061 |
Fixed income | 1 |  | 1,218,188 |  |  | 17,273 |  |  | (23,794 | ) |  | 1,211,667 |
Other | 3 |  | 6,369 |  |  | 2,513 |  |  | (47 | ) |  | 8,835 |
Trust investments, at fair value |  |  | 3,241,118 |  |  | 315,026 |  |  | (56,149 | ) |  | 3,499,995 |
Fixed income commingled funds |  |  | 653,105 |  |  | 1,103 |  |  | (6,095 | ) |  | 648,113 |
Private equity |  |  | 191,815 |  |  | 16,009 |  |  | (12,851 | ) |  | 194,973 |
Trust investments, at net asset value |  |  | 844,920 |  |  | 17,112 |  |  | (18,946 | ) |  | 843,086 |
Trust investments, at market |  |  | $ | 4,086,038 |  |  | $ | 332,138 |  |  | $ | (75,095 | ) |  | $ | 4,343,081 |
| December 31, 2016
| Value Hierarchy Level |  | Cost |  | Unrealized Gains |  | Unrealized Losses |  | Value
|  |  |  |  | (In thousands) |  |
Fixed income securities: |  |  |  |  |  |  |  |  |
U.S. Treasury | 2 |  | $ | 145,315 |  |  | $ | 884 |  |  | $ | (838 | ) |  | $ | 145,361 |
Canadian government | 2 |  | 79,141 |  |  | 409 |  |  | (222 | ) |  | 79,328 |
Corporate | 2 |  | 18,934 |  |  | 295 |  |  | (227 | ) |  | 19,002 |
Residential mortgage-backed | 2 |  | 333 |  |  | 1 |  |  | (1 | ) |  | 333 |
Asset-backed | 2 |  | 448 |  |  | 16 |  |  | (31 | ) |  | 433 |
Equity securities: |  |  |  |  |  |  |  |  |
Preferred stock | 2 |  | 2,907 |  |  | 83 |  |  | (156 | ) |  | 2,834 |
Common stock: |  |  |  |  |  |  |  |  |
United States | 1 |  | 1,107,942 |  |  | 151,146 |  |  | (35,542 | ) |  | 1,223,546 |
Canada | 1 |  | 25,708 |  |  | 10,030 |  |  | (455 | ) |  | 35,283 |
Other international | 1 |  | 83,238 |  |  | 4,995 |  |  | (10,632 | ) |  | 77,601 |
Mutual funds: |  |  |  |  |  |  |  |  |
Equity | 1 |  | 688,120 |  |  | 19,962 |  |  | (56,857 | ) |  | 651,225 |
Fixed income | 1 |  | 875,615 |  |  | 6,203 |  |  | (46,219 | ) |  | 835,599 |
Other | 3 |  | 4,712 |  |  | 2,468 |  |  | (17 | ) |  | 7,163 |
Trust investments, at fair value |  |  | 3,032,413 |  |  | 196,492 |  |  | (151,197 | ) |  | 3,077,708 |
Fixed income commingled funds |  |  | 692,434 |  |  | 8,524 |  |  | (12,234 | ) |  | 688,724 |
Private equity |  |  | 175,881 |  |  | 9,812 |  |  | (15,217 | ) |  | 170,476 |
Trust investments, at net asset value |  |  | 868,315 |  |  | 18,336 |  |  | (27,451 | ) |  | 859,200 |
Trust investments, at market |  |  | $ | 3,900,728 |  |  | $ | 214,828 |  |  | $ | (178,648 | ) |  | $ | 3,936,908 |
As of September 30, 2017, our unfunded commitment for our private equity and other investments was $153.3 million which, if called, would be funded by the assets of the trusts. The change in our market-based trust investments with significant unobservable inputs (Level 3) is as follows:
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
| (In thousands) |  | (In thousands)
Fair value, beginning balance | $ | 7,924 |  |  | $ | 8,553 |  |  | $ | 7,163 |  |  | $ | 8,177 |
Net unrealized (loss) gain included in Accumulated other comprehensive income(1) | (116 | ) |  | 117 |  |  | 694 |  |  | 486 |
Purchases | 1,881 |  |  | 36 |  |  | 1,909 |  |  | 61 |
Sales | (854 | ) |  | (1,309 | ) |  | (931 | ) |  | (1,327 | )
Fair value, ending balance | $ | 8,835 |  |  | $ | 7,397 |  |  | $ | 8,835 |  |  | $ | 7,397 |
(1) | All net unrealized (losses) gains recognized in Accumulated other comprehensive income for our trust investments are offset by a corresponding reclassification in Accumulated other comprehensive income to Deferred receipts held in trust and Care trusts' corpus.
Maturity dates of our fixed income securities range from 2017 to 2040. Maturities of fixed income securities (excluding mutual funds) at September 30, 2017 are estimated as follows:
| Fair Value
| (In thousands)
Due in one year or less | $ | 73,050 |
Due in one to five years | 50,496 |
Due in five to ten years | 2,175 |
Thereafter | 386 |
| $ | 126,107 |
Recognized trust fund income (realized and unrealized) related to these trust investments was $39.1 million and $35.7 million for the three months ended September 30, 2017 and 2016, respectively. Recognized trust fund income (realized and unrealized) related to these trust investments was $122.6 million and $116.2 million for the nine months ended September 30, 2017 and 2016, respectively. We have determined that the unrealized losses in our trust investments are considered temporary in nature, as the unrealized losses were due to temporary fluctuations in interest rates and equity prices. The investments are diversified across multiple industry segments using a balanced allocation strategy to minimize long-term risk. We believe that none of the securities are other-than-temporarily impaired based on our analysis of the investments. Our analysis included a review of the portfolio holdings and discussions with the individual money managers as to the sector exposures, credit ratings, and the severity and duration of the unrealized losses. Our trust investment unrealized losses, their associated values, and the duration of unrealized losses as of September 30, 2017 and December 31, 2016, respectively, are shown in the following tables:
| September 30, 2017
| In Loss Position Less Than 12 Months |  | In Loss Position Greater Than 12 Months |  | Total
| Value |  | Unrealized Losses |  | Value |  | Unrealized Losses |  | Value |  | Unrealized Losses
|  |  |  |  | (In thousands) |  |  |  |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury | $ | 5,372 |  |  | $ | (12 | ) |  | $ | — |  |  | $ | — |  |  | $ | 5,372 |  |  | $ | (12 | )
Canadian government | 24,819 |  |  | (596 | ) |  | 3,536 |  |  | (308 | ) |  | 28,355 |  |  | (904 | )
Corporate | 3,695 |  |  | (49 | ) |  | 3,676 |  |  | (90 | ) |  | 7,371 |  |  | (139 | )
Residential mortgage-backed | 202 |  |  | (1 | ) |  | — |  |  | — |  |  | 202 |  |  | (1 | )
Asset-backed | — |  |  | — |  |  | 23 |  |  | (7 | ) |  | 23 |  |  | (7 | )
Equity securities: |  |  |  |  |  |  |  |  |  |  |
Preferred stock | 2,936 |  |  | (123 | ) |  | 259 |  |  | (36 | ) |  | 3,195 |  |  | (159 | )
Common stock: |  |  |  |  |  |  |  |  |  |  |
United States | 232,604 |  |  | (22,023 | ) |  | 23,507 |  |  | (680 | ) |  | 256,111 |  |  | (22,703 | )
Canada | 4,345 |  |  | (510 | ) |  | 3,022 |  |  | (432 | ) |  | 7,367 |  |  | (942 | )
Other international | 7,911 |  |  | (494 | ) |  | 5,700 |  |  | (643 | ) |  | 13,611 |  |  | (1,137 | )
Mutual funds: |  |  |  |  |  |  |  |  |  |  |
Equity | 25,057 |  |  | (2,402 | ) |  | 17,439 |  |  | (3,902 | ) |  | 42,496 |  |  | (6,304 | )
Fixed income | 79,805 |  |  | (827 | ) |  | 292,789 |  |  | (22,967 | ) |  | 372,594 |  |  | (23,794 | )
Other | 190 |  |  | (2 | ) |  | 1,279 |  |  | (45 | ) |  | 1,469 |  |  | (47 | )
Trust investments, at fair value | 386,936 |  |  | (27,039 | ) |  | 351,230 |  |  | (29,110 | ) |  | 738,166 |  |  | (56,149 | )
Fixed income commingled funds | 347,260 |  |  | (1,496 | ) |  | 176,493 |  |  | (4,599 | ) |  | 523,753 |  |  | (6,095 | )
Private equity | 4,067 |  |  | (599 | ) |  | 71,881 |  |  | (12,252 | ) |  | 75,948 |  |  | (12,851 | )
Trust investments, at net asset value | 351,327 |  |  | (2,095 | ) |  | 248,374 |  |  | (16,851 | ) |  | 599,701 |  |  | (18,946 | )
Total temporarily impaired securities | $ | 738,263 |  |  | $ | (29,134 | ) |  | $ | 599,604 |  |  | $ | (45,961 | ) |  | $ | 1,337,867 |  |  | $ | (75,095 | )
| December 31, 2016
| In Loss Position Less Than 12 Months |  | In Loss Position Greater Than 12 Months |  | Total
| Value |  | Unrealized Losses |  | Value |  | Unrealized Losses |  | Value |  | Unrealized Losses
|  |  |  |  | (In thousands) |  |  |  |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury | $ | 41,409 |  |  | $ | (838 | ) |  | $ | — |  |  | $ | — |  |  | $ | 41,409 |  |  | $ | (838 | )
Canadian government | 2,913 |  |  | (31 | ) |  | 3,344 |  |  | (191 | ) |  | 6,257 |  |  | (222 | )
Corporate | 2,107 |  |  | (22 | ) |  | 6,162 |  |  | (205 | ) |  | 8,269 |  |  | (227 | )
Residential mortgage-backed | 303 |  |  | (1 | ) |  | — |  |  | — |  |  | 303 |  |  | (1 | )
Asset-backed | 28 |  |  | (22 | ) |  | 156 |  |  | (9 | ) |  | 184 |  |  | (31 | )
Equity securities: |  |  |  |  |  |  |  |  |  |  |
Preferred stock | 971 |  |  | (53 | ) |  | 515 |  |  | (103 | ) |  | 1,486 |  |  | (156 | )
Common stock: |  |  |  |  |  |  |  |  |  |  |
United States | 271,433 |  |  | (23,168 | ) |  | 50,923 |  |  | (12,374 | ) |  | 322,356 |  |  | (35,542 | )
Canada | 3,318 |  |  | (383 | ) |  | 1,078 |  |  | (72 | ) |  | 4,396 |  |  | (455 | )
Other international | 19,274 |  |  | (4,139 | ) |  | 24,525 |  |  | (6,493 | ) |  | 43,799 |  |  | (10,632 | )
Mutual funds: |  |  |  |  |  |  |  |  |  |  |
Equity | 234,714 |  |  | (9,825 | ) |  | 276,504 |  |  | (47,032 | ) |  | 511,218 |  |  | (56,857 | )
Fixed income | 323,917 |  |  | (5,941 | ) |  | 425,614 |  |  | (40,278 | ) |  | 749,531 |  |  | (46,219 | )
Other | 26 |  |  | (2 | ) |  | 1,160 |  |  | (15 | ) |  | 1,186 |  |  | (17 | )
Trust investments, at fair value | 900,413 |  |  | (44,425 | ) |  | 789,981 |  |  | (106,772 | ) |  | 1,690,394 |  |  | (151,197 | )
Fixed income commingled funds | 473,550 |  |  | (11,714 | ) |  | 20,587 |  |  | (520 | ) |  | 494,137 |  |  | (12,234 | )
Private equity | 22,677 |  |  | (750 | ) |  | 73,100 |  |  | (14,467 | ) |  | 95,777 |  |  | (15,217 | )
Trust investments, at net asset value | 496,227 |  |  | (12,464 | ) |  | 93,687 |  |  | (14,987 | ) |  | 589,914 |  |  | (27,451 | )
Total temporarily impaired securities | $ | 1,396,640 |  |  | $ | (56,889 | ) |  | $ | 883,668 |  |  | $ | (121,759 | ) |  | $ | 2,280,308 |  |  | $ | (178,648 | )

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- Definition Preneed Activities. + References No definition available. + Details
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- Definition This note represents disclosures relating to preneed activity and major accounts which also include: (1) fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments; (2) variable interest entities; and (3)all other required (as defined) and desired information. + References No definition available. + Details
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Period Type: | duration