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Preneed Activities Level 1 (Notes) | 12 Months Ended
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Dec. 31, 2020
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,
| 2020 |  | 2019
| (In thousands)
Preneed receivables, net | $ | 1,069,965 |  |  | $ | 947,232 |
Trust investments, at fair value | 5,851,188 |  |  | 5,258,319 |
Insurance-backed fixed income securities and other | 245,056 |  |  | 265,160 |
Trust investments | 6,096,244 |  |  | 5,523,479 |
Less: Cemetery perpetual care trust investments | (1,820,489) |  |  | (1,681,149) |
Preneed trust investments | 4,275,755 |  |  | 3,842,330 |
Preneed receivables, net and trust investments | $ | 5,345,720 |  |  | $ | 4,789,562 |
Preneed receivables, net comprised the following:
| December 31, 2020
| Funeral |  | Cemetery |  | Total
| (In thousands)
Preneed receivables | $ | 143,896 |  |  | $ | 979,259 |  |  | $ | 1,123,155 |
Unearned finance charges | (14,018) |  |  | $ | (19,968) |  |  | $ | (33,986) |
Preneed receivables, at amortized cost | $ | 129,878 |  |  | $ | 959,291 |  |  | $ | 1,089,169 |
Reserve for credit losses | (10,940) |  |  | $ | (8,264) |  |  | $ | (19,204) |
Preneed receivables, net | $ | 118,938 |  |  | $ | 951,027 |  |  | $ | 1,069,965 |
| December 31, 2019
| Funeral |  | Cemetery |  | Total
| (In thousands)
Preneed receivables | $ | 130,971 |  |  | $ | 907,973 |  |  | $ | 1,038,944 |
Unearned finance charges | (16,328) |  |  | (34,242) |  |  | (50,570) |
Preneed receivables, at amortized cost | 114,643 |  |  | 873,731 |  |  | 988,374 |
Allowance for cancellation | (1,452) |  |  | (39,690) |  |  | (41,142) |
Preneed receivables, net | $ | 113,191 |  |  | $ | 834,041 |  |  | $ | 947,232 |
At December 31, 2020, the amortized cost basis of our preneed receivables by year of origination was as follows:
| 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  | Total
| (In thousands)
Preneed receivables, at amortized cost: |  |  |  |  |  |  |  |  |  |  |  |
Funeral | $ | 60,249 |  |  | $ | 37,497 |  |  | $ | 13,276 |  |  | $ | 6,353 |  |  | $ | 3,039 |  |  | $ | 9,464 |  |  | $ | 129,878 |
Cemetery | 426,260 |  |  | 232,622 |  |  | 149,693 |  |  | 87,912 |  |  | 40,857 |  |  | 21,947 |  |  | 959,291 |
Total preneed receivables, at amortized cost | $ | 486,509 |  |  | $ | 270,119 |  |  | $ | 162,969 |  |  | $ | 94,265 |  |  | $ | 43,896 |  |  | $ | 31,411 |  |  | $ | 1,089,169 |
At December 31, 2020, the payment status of our preneed receivables was as follows:
| Past Due |  |  |  |
| <30 Days |  | 30-90 Days |  | 90-180 Days |  | >180 Days |  | Total |  | Current |  | Total
| (In thousands)
Preneed receivables, at amortized cost: |  |  |  |  |  |  |  |  |  |  |  |
Funeral | $ | 3,593 |  |  | $ | 2,503 |  |  | $ | 1,533 |  |  | $ | 15,321 |  |  | $ | 22,950 |  |  | $ | 106,928 |  |  | $ | 129,878 |
Cemetery | 28,288 |  |  | 20,821 |  |  | 5,233 |  |  | 989 |  |  | 55,331 |  |  | 903,960 |  |  | 959,291 |
Total preneed receivables, at amortized cost | $ | 31,881 |  |  | $ | 23,324 |  |  | $ | 6,766 |  |  | $ | 16,310 |  |  | $ | 78,281 |  |  | $ | 1,010,888 |  |  | $ | 1,089,169 |
The following table summarizes the activity for the reserve for credit losses on preneed receivables for the twelve months ended December 31, 2020.
| January 1, 2020 |  | Provision for Expected Credit Losses |  | Acquisitions (Divestitures), Net |  | Write Offs |  | Effect of Foreign Currency |  | December 31, 2020
| (In thousands)
Funeral | $ | (8,057) |  |  | $ | (5,652) |  |  | $ | 9 |  |  | $ | 2,750 |  |  | $ | 10 |  |  | $ | (10,940) |
Cemetery | (6,700) |  |  | (2,087) |  |  | — |  |  | 520 |  |  | 3 |  |  | (8,264) |
Total reserve for credit losses on preneed receivables | $ | (14,757) |  |  | $ | (7,739) |  |  | $ | 9 |  |  | $ | 3,270 |  |  | $ | 13 |  |  | $ | (19,204) |
The table below sets forth certain investment-related activities associated with our trusts:
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
| (In thousands)
Deposits | $ | 429,307 |  |  | $ | 421,460 |  |  | $ | 393,523 |
Withdrawals | $ | 424,986 |  |  | $ | 435,344 |  |  | $ | 432,822 |
Purchases of securities | $ | 2,147,935 |  |  | $ | 1,596,698 |  |  | $ | 1,540,093 |
Sales of securities | $ | 1,994,684 |  |  | $ | 1,495,733 |  |  | $ | 1,564,968 |
Realized gains from sales of securities(1) | $ | 418,851 |  |  | $ | 241,661 |  |  | $ | 305,595 |
Realized losses from sales of securities(1) | $ | (262,974) |  |  | $ | (121,272) |  |  | $ | (77,996) |
(1)All realized gains and losses are recognized in Other income, net for our trust investments and are offset by a corresponding reclassification in Other income, 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,
| 2020 |  | 2019 |  | 2018
| (In thousands)
Beginning balance - Preneed receivables, net and trust investments | $ | 4,789,562 |  |  | $ | 4,271,392 |  |  | $ | 4,778,842 |
Cumulative effect of accounting changes | 26,394 |  |  | — |  |  | — |
Net preneed contract sales | 1,494,557 |  |  | 1,372,705 |  |  | 1,325,134 |
Cash receipts from customers, net of refunds | (1,279,295) |  |  | (1,280,468) |  |  | (1,185,717) |
Deposits to trust | 373,663 |  |  | 372,644 |  |  | 347,601 |
Acquisitions of businesses, net | 19,299 |  |  | 11,751 |  |  | 134,729 |
Net undistributed investment earnings (losses) (1) | 407,770 |  |  | 489,577 |  |  | (191,611) |
Maturities and distributed earnings | (430,608) |  |  | (442,507) |  |  | (433,036) |
Change in cancellation allowance | (4,468) |  |  | (2,006) |  |  | 62,131 |
Change in amounts due on unfulfilled performance obligations | (55,269) |  |  | (10,223) |  |  | (546,554) |
Effect of foreign currency and other | 4,115 |  |  | 6,697 |  |  | (20,127) |
Ending balance - Preneed receivables, net and trust investments | $ | 5,345,720 |  |  | $ | 4,789,562 |  |  | $ | 4,271,392 |
(1) Includes both realized and unrealized investment earnings (losses). The cost and fair values associated with trust investments recorded at fair value at December 31, 2020 and 2019 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, 2020
| Fair Value Hierarchy Level | Cost |  | Unrealized Gains |  | Unrealized Losses |  | Value
|  |  |  | (In thousands) |  |
Fixed income securities: |  |  |  |  |  |  |  |
U.S. Treasury | 2 | $ | 44,907 |  |  | $ | 1,566 |  |  | $ | (272) |  |  | $ | 46,201 |
Canadian government | 2 | 30,210 |  |  | 51 |  |  | (157) |  |  | 30,104 |
Corporate | 2 | 1,669 |  |  | 14 |  |  | (8) |  |  | 1,675 |
Residential mortgage-backed | 2 | 2,438 |  |  | 131 |  |  | — |  |  | 2,569 |
Asset-backed | 2 | 174 |  |  | 3 |  |  | (5) |  |  | 172 |
Equity securities: |  |  |  |  |  |  |  |
Preferred stock | 2 | 358 |  |  | — |  |  | (24) |  |  | 334 |
Common stock: |  |  |  |  |  |  |  |
United States | 1 | 1,500,125 |  |  | 503,757 |  |  | (54,748) |  |  | 1,949,134 |
Canada | 1 | 35,016 |  |  | 10,915 |  |  | (1,823) |  |  | 44,108 |
Other international | 1 | 110,775 |  |  | 39,837 |  |  | (1,831) |  |  | 148,781 |
Mutual funds: |  |  |  |  |  |  |  |
Equity | 1 | 821,406 |  |  | 95,155 |  |  | (10,437) |  |  | 906,124 |
Fixed income | 1 | 1,022,409 |  |  | 35,872 |  |  | (19,298) |  |  | 1,038,983 |
Other | 3 | 188 |  |  | 2 |  |  | — |  |  | 190 |
Trust investments, at fair value |  | 3,569,675 |  |  | 687,303 |  |  | (88,603) |  |  | 4,168,375 |
Commingled funds |  |  |  |  |  |  |  |
Fixed income |  | 657,219 |  |  | 37,474 |  |  | (173) |  |  | 694,520 |
Equity |  | 283,329 |  |  | 97,704 |  |  | — |  |  | 381,033 |
Money market funds |  | 330,745 |  |  | — |  |  | — |  |  | 330,745 |
Private equity |  | 217,953 |  |  | 68,846 |  |  | (10,284) |  |  | 276,515 |
Trust investments, at net asset value |  | 1,489,246 |  |  | 204,024 |  |  | (10,457) |  |  | 1,682,813 |
Trust investments, at market |  | $ | 5,058,921 |  |  | $ | 891,327 |  |  | $ | (99,060) |  |  | $ | 5,851,188 |
As of December 31, 2020, our unfunded commitment for our private equity investments was $228.0 million which, if called, would be funded by the assets of the trusts.
|  | December 31, 2019
| Fair Value Hierarchy Level | Cost |  | Unrealized Gains |  | Unrealized Losses |  | Value
|  |  |  | (In thousands) |  |
Fixed income securities: |  |  |  |  |  |  |  |
U.S. Treasury | 2 | $ | 49,728 |  |  | $ | 752 |  |  | $ | (130) |  |  | $ | 50,350 |
Canadian government | 2 | 41,093 |  |  | 76 |  |  | (850) |  |  | 40,319 |
Corporate | 2 | 9,694 |  |  | 28 |  |  | (172) |  |  | 9,550 |
Residential mortgage-backed | 2 | 3,210 |  |  | 59 |  |  | (1) |  |  | 3,268 |
Asset-backed | 2 | 129 |  |  | 3 |  |  | (4) |  |  | 128 |
Equity securities: |  |  |  |  |  |  |  |
Preferred stock | 2 | 6,338 |  |  | 804 |  |  | (115) |  |  | 7,027 |
Common stock: |  |  |  |  |  |  |  |
United States | 1 | 1,349,828 |  |  | 303,766 |  |  | (36,507) |  |  | 1,617,087 |
Canada | 1 | 43,866 |  |  | 12,369 |  |  | (2,075) |  |  | 54,160 |
Other international | 1 | 95,257 |  |  | 18,227 |  |  | (522) |  |  | 112,962 |
Mutual funds: |  |  |  |  |  |  |  |
Equity | 1 | 746,581 |  |  | 31,511 |  |  | (54,020) |  |  | 724,072 |
Fixed income | 1 | 1,247,930 |  |  | 16,424 |  |  | (32,587) |  |  | 1,231,767 |
Other | 3 | 7,034 |  |  | 1,184 |  |  | — |  |  | 8,218 |
Trust investments, at fair value |  | 3,600,688 |  |  | 385,203 |  |  | (126,983) |  |  | 3,858,908 |
Commingled funds |  |  |  |  |  |  |  |
Fixed income |  | 444,744 |  |  | 5,077 |  |  | (1,731) |  |  | 448,090 |
Equity |  | 249,980 |  |  | 47,631 |  |  | — |  |  | 297,611 |
Money market funds |  | 397,461 |  |  | — |  |  | — |  |  | 397,461 |
Private equity |  | 176,388 |  |  | 80,283 |  |  | (422) |  |  | 256,249 |
Trust investments, at net asset value |  | 1,268,573 |  |  | 132,991 |  |  | (2,153) |  |  | 1,399,411 |
Trust investments, at market |  | $ | 4,869,261 |  |  | $ | 518,194 |  |  | $ | (129,136) |  |  | $ | 5,258,319 |
The change in our market-based trust investments with significant unobservable inputs (Level 3) is as follows:
|  | Years Ended December 31,
|  | 2020 |  | 2019 |  | 2018
|  | (In thousands)
Fair value, beginning balance at January 1 |  | $ | 8,218 |  |  | $ | 9,755 |  |  | $ | 9,067 |
Net realized and unrealized (losses) included in Other income, net(1) |  | (1,215) |  |  | (761) |  |  | (697) |
Purchases |  | — |  |  | 1,006 |  |  | 66 |
Sales |  | (2) |  |  | (1,782) |  |  | (26) |
Acquisitions, net |  | — |  |  | — |  |  | 1,345 |
Transfers |  | (6,811) |  |  | — |  |  | — |
Fair value, ending balance at December 31 |  | $ | 190 |  |  | $ | 8,218 |  |  | $ | 9,755 |
(1)All net realized and unrealized (losses) recognized in Other income, net for our trust investments are offset by a corresponding reclassification in Other income, net to Deferred receipts held in trust and Care trusts' corpus. Maturity dates of our fixed income securities range from 2021 to 2040. Maturities of fixed income securities (excluding mutual funds) at December 31, 2020 are estimated as follows:
| Fair Value
| (In thousands)
Due in one year or less | $ | 47,203 |
Due in one to five years | 25,067 |
Due in five to ten years | 8,311 |
Thereafter | 140 |
Total estimated maturities of fixed income securities | $ | 80,721 |
Recognized trust fund income (realized and unrealized) related to our preneed trust investments was $129.1 million, $119.0 million, and $121.7 million for the years ended December 31, 2020, 2019, and 2018, respectively. Recognized trust fund income (realized and unrealized) related to our cemetery perpetual care trust investments was $77.8 million, $77.5 million, and $74.7 million for the years ended December 31, 2020, 2019, and 2018, respectively. Deferred revenue, net At December 31, 2020 and 2019, 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,
| 2020 |  | 2019 |  |
| (In thousands)
Deferred revenue | $ | 2,127,878 |  |  | $ | 2,046,000 |  |  |
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts | (638,969) |  |  | (578,897) |  |  |
Deferred revenue, net | $ | 1,488,909 |  |  | $ | 1,467,103 |  |  |
The following table summarizes the activity for our contract liabilities, which are reflected in Deferred revenue, net and Deferred receipts held in trust:
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
| (In thousands)
Beginning balance — Deferred revenue, net and Deferred receipts held in trust | $ | 5,306,479 |  |  | $ | 4,790,552 |  |  | $ | 5,265,206 |
Cumulative effect of accounting changes | — |  |  | — |  |  | 37,991 |
Net preneed contract sales | 1,089,060 |  |  | 984,575 |  |  | 977,378 |
(Dispositions) acquisitions of businesses, net | 19,664 |  |  | (12,741) |  |  | 159,560 |
Net investment gains (losses)(1) | 402,048 |  |  | 484,577 |  |  | (195,051) |
Recognized revenue from backlog (2) | (412,127) |  |  | (368,908) |  |  | (381,041) |
Recognized revenue from current period sales | (598,768) |  |  | (573,804) |  |  | (572,428) |
Change in amounts due on unfulfilled performance obligations | (55,087) |  |  | (10,223) |  |  | (546,554) |
Change in cancellation reserve | 1,070 |  |  | 1,066 |  |  | 65,817 |
Effect of foreign currency and other | 8,952 |  |  | 11,385 |  |  | (20,326) |
Ending balance — Deferred revenue, net and Deferred receipts held in trust | $ | 5,761,291 |  |  | $ | 5,306,479 |  |  | $ | 4,790,552 |
(1)Includes both realized and unrealized investment gains (losses). (2)Includes current year trust fund income through the date of performance.

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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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