XML 32 R11.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Preneed Activities Level 1 (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2018
Preneed Activities [Abstract] |
Preneed Activities Text Block |
3. | Preneed Activities
Preneed receivables, net and trust investments The components of Preneed receivables, net and trust investments in our Consolidated Balance Sheet were as follows:
| Years Ended December 31,
| 2018 |  | 2017
| (In thousands)
Preneed funeral receivables (1) | $ | 107,612 |  |  | $ | 336,925 |
Preneed cemetery receivables (1) | 883,432 |  |  | 1,118,146 |
Preneed receivables from customers | 991,044 |  |  | 1,455,071 |
Unearned finance charge | (44,981 | ) |  | (45,515 | )
Allowance for cancellation (1) | (48,380 | ) |  | (107,749 | )
Preneed receivables, net | 897,683 |  |  | 1,301,807 |
Trust investments, at market | 4,585,720 |  |  | 4,749,548 |
Assets associated with business held for sale | — |  |  | (5,660 | )
Insurance-backed fixed income securities and other | 265,787 |  |  | 265,314 |
Trust investments | 4,851,507 |  |  | 5,009,202 |
Less: Cemetery perpetual care trust investments | (1,477,798 | ) |  | (1,532,167 | )
Preneed trust investments | 3,373,709 |  |  | 3,477,035 |
Preneed receivables, net and trust investments | $ | 4,271,392 |  |  | $ | 4,778,842 |
(1) | Upon adoption of "Revenue from Contracts with Customers" on January 1, 2018, we reclassified amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts as a reduction in Deferred revenue, net. As a result of this reclassification, we eliminated the allowance for cancellation on these performance obligations.
The table below sets forth certain investment-related activities associated with our trusts:
| Years Ended December 31,
| 2018 |  | 2017 |  | 2016
|  |  | (In thousands) |  |
Deposits | $ | 393,523 |  |  | $ | 371,234 |  |  | $ | 321,232 |
Withdrawals | $ | 432,822 |  |  | $ | 415,283 |  |  | $ | 350,379 |
Purchases of securities | $ | 1,540,093 |  |  | $ | 2,057,348 |  |  | $ | 1,462,900 |
Sales of securities | $ | 1,564,968 |  |  | $ | 1,999,918 |  |  | $ | 1,393,728 |
Realized gains from sales of securities(1) | $ | 305,595 |  |  | $ | 256,413 |  |  | $ | 100,284 |
Realized losses from sales of securities(1) | $ | (77,996 | ) |  | $ | (76,963 | ) |  | $ | (113,806 | )
(1) | All realized gains and losses are recognized in Other income (expense), net for our trust investments and are offset by a corresponding reclassification in Other income (expense), net to Deferred receipts held in trust and Care trusts’ corpus
The activity in Preneed receivables, net and trust investments was as follows:
| Years Ended December 31,
| 2018 |  | 2017 |  | 2016
|  |  | (In thousands) |  |
Beginning balance - Preneed receivables, net and trust investments | $ | 4,778,842 |  |  | $ | 4,305,165 |  |  | $ | 4,078,464 |
Net preneed contract sales | 1,325,134 |  |  | 1,257,288 |  |  | 1,159,194 |
Cash receipts from customers, net of refunds | (1,185,717 | ) |  | (1,109,380 | ) |  | (1,030,703 | )
Deposits to trust | 347,601 |  |  | 328,241 |  |  | 279,782 |
Acquisitions of businesses, net | 134,729 |  |  | 8,153 |  |  | 1,477 |
Net undistributed investment (losses) earnings (1) | (191,611 | ) |  | 384,512 |  |  | 145,511 |
Maturities and distributed earnings | (433,036 | ) |  | (411,452 | ) |  | (337,912 | )
Change in cancellation allowance | 62,131 |  |  | (528 | ) |  | 3,329 |
Change in amounts due on unfulfilled performance obligations | (546,554 | ) |  | — |  |  | — |
Effect of foreign currency and other | (20,127 | ) |  | 16,843 |  |  | 6,023 |
Ending balance - Preneed receivables, net and trust investments | $ | 4,271,392 |  |  | $ | 4,778,842 |  |  | $ | 4,305,165 |
(1) | Includes both realized and unrealized investment (losses) earnings.
The cost and market values associated with trust investments recorded at market value at December 31, 2018 and 2017 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.
|  | December 31, 2018
| Fair Value Hierarchy Level | Cost |  | Unrealized Gains |  | Unrealized Losses |  | Value
|  |  |  | (In thousands) |  |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury | 2 | $ | 49,187 |  |  | $ | 153 |  |  | $ | (448 | ) |  | $ | 48,892 |
Canadian government | 2 | 56,343 |  |  | 23 |  |  | (1,797 | ) |  | 54,569 |
Corporate | 2 | 19,869 |  |  | 13 |  |  | (516 | ) |  | 19,366 |
Residential mortgage-backed | 2 | 3,611 |  |  | 10 |  |  | (50 | ) |  | 3,571 |
Asset-backed | 2 | 142 |  |  | 2 |  |  | (11 | ) |  | 133 |
Equity securities: |  |  |  |  |  |  |  |  |
Preferred stock | 2 | 9,058 |  |  | 180 |  |  | (412 | ) |  | 8,826 |
Common stock: |  |  |  |  |  |  |  |  |
United States | 1 | 1,236,513 |  |  | 149,233 |  |  | (138,141 | ) |  | 1,247,605 |
Canada | 1 | 34,821 |  |  | 9,082 |  |  | (3,026 | ) |  | 40,877 |
Other international | 1 | 77,676 |  |  | 6,057 |  |  | (10,275 | ) |  | 73,458 |
Mutual funds: |  |  |  |  |  |  |  |  |
Equity | 1 | 760,887 |  |  | 7,104 |  |  | (151,853 | ) |  | 616,138 |
Fixed income | 1 | 1,180,325 |  |  | 800 |  |  | (89,179 | ) |  | 1,091,946 |
Other | 3 | 6,548 |  |  | 3,210 |  |  | (3 | ) |  | 9,755 |
Trust investments, at fair value |  | 3,434,980 |  |  | 175,867 |  |  | (395,711 | ) |  | 3,215,136 |
Commingled funds |  |  |  |  |  |  |  |
Fixed income |  | 419,206 |  |  | 2,419 |  |  | (18,981 | ) |  | 402,644 |
Equity |  | 205,789 |  |  | 19,567 |  |  | (11,723 | ) |  | 213,633 |
Money market funds |  | 466,429 |  |  | — |  |  | — |  |  | 466,429 |
Private equity |  | 215,618 |  |  | 72,897 |  |  | (637 | ) |  | 287,878 |
Trust investments, at net asset value |  | 1,307,042 |  |  | 94,883 |  |  | (31,341 | ) |  | 1,370,584 |
Trust investments, at market |  | $ | 4,742,022 |  |  | $ | 270,750 |  |  | $ | (427,052 | ) |  | $ | 4,585,720 |
|  | December 31, 2017
| Fair Value Hierarchy Level | Cost |  | Unrealized Gains |  | Unrealized Losses |  | Value
|  |  |  | (In thousands) |  |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury | 2 | $ | 48,805 |  |  | $ | 14 |  |  | $ | (117 | ) |  | $ | 48,702 |
Canadian government | 2 | 81,500 |  |  | 160 |  |  | (1,089 | ) |  | 80,571 |
Corporate | 2 | 13,540 |  |  | 327 |  |  | (170 | ) |  | 13,697 |
Residential mortgage-backed | 2 | 3,279 |  |  | 16 |  |  | (14 | ) |  | 3,281 |
Asset-backed | 2 | 320 |  |  | 15 |  |  | (10 | ) |  | 325 |
Equity securities: |  |  |  |  |  |  |  |  |
Preferred stock | 2 | 7,834 |  |  | 385 |  |  | (139 | ) |  | 8,080 |
Common stock: |  |  |  |  |  |  |  |  |
United States | 1 | 1,161,015 |  |  | 266,822 |  |  | (24,739 | ) |  | 1,403,098 |
Canada | 1 | 30,762 |  |  | 12,545 |  |  | (522 | ) |  | 42,785 |
Other international | 1 | 63,510 |  |  | 13,174 |  |  | (2,834 | ) |  | 73,850 |
Mutual funds: |  |  |  |  |  |  |  |  |
Equity | 1 | 613,934 |  |  | 59,100 |  |  | (4,312 | ) |  | 668,722 |
Fixed income | 1 | 1,230,196 |  |  | 11,897 |  |  | (23,943 | ) |  | 1,218,150 |
Other | 3 | 5,953 |  |  | 3,114 |  |  | — |  |  | 9,067 |
Trust investments, at fair value |  | 3,260,648 |  |  | 367,569 |  |  | (57,889 | ) |  | 3,570,328 |
Commingled funds |  |  |  |  |  |  |  |
Fixed income |  | 454,242 |  |  | 235 |  |  | (5,860 | ) |  | 448,617 |
Equity |  | 214,000 |  |  | 12,826 |  |  | — |  |  | 226,826 |
Money market funds |  | 287,435 |  |  | — |  |  | — |  |  | 287,435 |
Private equity |  | 166,860 |  |  | 51,631 |  |  | (2,149 | ) |  | 216,342 |
Trust investments, at net asset value |  | 1,122,537 |  |  | 64,692 |  |  | (8,009 | ) |  | 1,179,220 |
Trust investments, at market |  | $ | 4,383,185 |  |  | $ | 432,261 |  |  | $ | (65,898 | ) |  | $ | 4,749,548 |
As of December 31, 2018, our unfunded commitment for our private equity investments was $113 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:
|  | Years Ended December 31,
|  | 2018 |  | 2017 |  | 2016
|  | (In thousands)
Fair value, beginning balance at January 1 |  | $ | 9,067 |  |  | $ | 7,163 |  |  | $ | 8,162 |
Net realized and unrealized (losses) gains included in Other income (expense), net(1) |  | (697 | ) |  | 912 |  |  | 251 |
Purchases |  | 66 |  |  | 1,945 |  |  | 89 |
Sales |  | (26 | ) |  | (953 | ) |  | (1,339 | )
Acquisitions, net |  | 1,345 |  |  | — |  |  | — |
Fair value, ending balance at December 31 |  | $ | 9,755 |  |  | $ | 9,067 |  |  | $ | 7,163 |
(1) | All net realized and unrealized (losses) gains recognized in Other income (expense), net for our trust investments are offset by a corresponding reclassification in Other income (expense), net to Deferred receipts held in trust and Care trusts' corpus.
Maturity dates of our fixed income securities range from 2019 to 2077. Maturities of fixed income securities (excluding mutual funds) at December 31, 2018 are estimated as follows:
| Fair Value
| (In thousands)
Due in one year or less | $ | 62,374 |
Due in one to five years | 53,512 |
Due in five to ten years | 9,698 |
Thereafter | 947 |
Total estimated maturities of fixed income securities | $ | 126,531 |
Recognized trust fund income (realized and unrealized) related to our preneed trust investments was $121.7 million, $112.6 million, and $94.4 million for the years ended December 31, 2018, 2017, and 2016, respectively. Recognized trust fund income (realized and unrealized) related to our cemetery perpetual care trust investments was $74.7 million, $62.9 million, and $67.6 million for the years ended December 31, 2018, 2017, and 2016, respectively. We have determined that the unrealized losses in our fixed income trust investments are considered temporary in nature, as the unrealized losses were due to temporary fluctuations in interest rates. 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 credit ratings and the severity and duration of the unrealized losses. Our fixed income investment unrealized losses, their associated fair values, and the duration of unrealized losses for the years ended December 31, 2018 and 2017, are shown in the following tables:
| December 31, 2018
| In Loss Position Less Than 12 Months |  | In Loss Position Greater Than 12 Months |  | Total
| Fair Market Value |  | Unrealized Losses |  | Fair Market Value |  | Unrealized Losses |  | Fair Market Value |  | Unrealized Losses
|  |  |  |  | (In thousands) |  |  |  |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury | $ | 6,899 |  |  | $ | (226 | ) |  | $ | 16,374 |  |  | $ | (222 | ) |  | $ | 23,273 |  |  | $ | (448 | )
Canadian government | 2,254 |  |  | (9 | ) |  | 25,330 |  |  | (1,788 | ) |  | 27,584 |  |  | (1,797 | )
Corporate | 11,579 |  |  | (206 | ) |  | 6,563 |  |  | (310 | ) |  | 18,142 |  |  | (516 | )
Residential mortgage-backed | 351 |  |  | (4 | ) |  | 3,010 |  |  | (46 | ) |  | 3,361 |  |  | (50 | )
Asset-backed | — |  |  | — |  |  | 79 |  |  | (11 | ) |  | 79 |  |  | (11 | )
Total fixed income temporarily impaired securities | $ | 21,083 |  |  | $ | (445 | ) |  | $ | 51,356 |  |  | $ | (2,377 | ) |  | $ | 72,439 |  |  | $ | (2,822 | )
| December 31, 2017
| In Loss Position Less Than 12 Months |  | In Loss Position Greater Than 12 Months |  | Total
| Fair Market Value |  | Unrealized Losses |  | Fair Market Value |  | Unrealized Losses |  | Fair Market Value |  | Unrealized Losses
|  |  |  |  | (In thousands) |  |  |  |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury | $ | 29,014 |  |  | $ | (115 | ) |  | $ | 106 |  |  | $ | (2 | ) |  | $ | 29,120 |  |  | $ | (117 | )
Canadian government | 20,947 |  |  | (639 | ) |  | 6,370 |  |  | (450 | ) |  | 27,317 |  |  | (1,089 | )
Corporate | 2,423 |  |  | (31 | ) |  | 4,453 |  |  | (139 | ) |  | 6,876 |  |  | (170 | )
Residential mortgage-backed | 2,880 |  |  | (12 | ) |  | 151 |  |  | (2 | ) |  | 3,031 |  |  | (14 | )
Asset-backed | — |  |  | — |  |  | 74 |  |  | (10 | ) |  | 74 |  |  | (10 | )
Total fixed income temporarily impaired securities | $ | 55,264 |  |  | $ | (797 | ) |  | $ | 11,154 |  |  | $ | (603 | ) |  | $ | 66,418 |  |  | $ | (1,400 | )
Deferred revenue, net At December 31, 2018 and 2017, Deferred revenue, net represents future revenue, including distributed trust investment earnings associated with unperformed trust-funded preneed contracts that are not held in trust accounts. Future revenue and net trust investment earnings that are held in trust accounts are included in Deferred receipts held in trust. The components of Deferred revenue, net in our Consolidated Balance Sheet were as follows:
| Years Ended December 31,
| 2018 |  | 2017
| (In thousands)
Deferred revenue | $ | 1,989,232 |  |  | $ | 1,789,776 |
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts (1) | (570,418 | ) |  | — |
Deferred revenue, net | $ | 1,418,814 |  |  | $ | 1,789,776 |
(1) | Prior to adoption of "Revenue from Contracts with Customers" on January 1, 2018, amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts were included in Preneed receivables, net and trust investments.
The following table summarizes the activity for our contract liabilities, which are reflected in Deferred revenue, net and Deferred receipts held in trust for the year ended December 31, 2018 (in thousands):
Beginning balance — Deferred revenue, net and Deferred receipts held in trust | $ | 5,265,206 |
Cumulative effect of accounting changes | 37,991 |
Net preneed contract sales | 977,378 |
Acquisitions of businesses, net | 159,560 |
Net investment losses(1) | (195,051 | )
Recognized revenue from backlog (2) | (381,041 | )
Recognized revenue from current period sales | (572,428 | )
Change in amounts due on unfulfilled performance obligations | (546,554 | )
Change in cancellation reserve | 65,817 |
Effect of foreign currency and other | (20,326 | )
Ending balance — Deferred revenue, net and Deferred receipts held in trust | $ | 4,790,552 |
(1) | Includes both realized and unrealized investment losses.
(2) | Includes current year trust fund income through the date of performance.
The following table summarizes the activity in Deferred revenue, net:
| Years Ended December 31,
| 2017 |  | 2016
| (In thousands)
Beginning balance — Deferred revenue, net | $ | 1,731,417 |  |  | $ | 1,677,898 |
Net preneed contract sales | 900,037 |  |  | 847,848 |
Acquisitions of businesses, net | 10,488 |  |  | 193 |
Net investment earnings (1) | 381,436 |  |  | 146,103 |
Recognized revenue | (876,857 | ) |  | (823,319 | )
Change in cancellation allowance | (165 | ) |  | 5,396 |
Change in deferred receipts held in trust | (361,499 | ) |  | (124,923 | )
Effect of foreign currency and other | 4,919 |  |  | 2,221 |
Ending balance — Deferred revenue, net | $ | 1,789,776 |  |  | $ | 1,731,417 |
(1) | Includes both realized and unrealized investment earnings.

X
- Definition Preneed Activities. + References No definition available. + Details
Name: | sci_PreneedActivitiesAbstract
Namespace Prefix: | sci_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | sci_PreneedActivitiesTextBlock
Namespace Prefix: | sci_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration