Preneed Trust Investments (Tables)

9 Months Ended

Sep. 30, 2013

Preneed Trust Investments [Abstract]

Components of preneed cemetery trust investments

The components of Preneed cemetery trust investments in our Consolidated Balance Sheets at December 31, 2012 and September 30, 2013 are as follows (in thousands):



	December 31, 2012			September 30, 2013
Preneed cemetery trust investments, at fair value	$	73,126		$	68,962
Less: allowance for contract cancellation	(2,166		)	(2,043		)
Preneed cemetery trust investments, net	$	70,960		$	66,919

Cost and fair market values associated with preneed cemetery trust investments

The cost and fair market values associated with preneed cemetery trust investments at September 30, 2013 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	864	$	—	$	—		$	864
Fixed income securities:
Foreign debt	2	3,498		36		(42		)	3,492
Corporate debt	2	34,000		471		(1,156		)	33,315
Preferred stock	2	17,869		69		(435		)	17,503
Mortgage backed securities	2	1		—		—			1
Common stock	1	11,856		1,259		(427		)	12,688
Trust securities		$	68,088	$	1,835	$	(2,060	)	$	67,863
Accrued investment income		$	1,099						$	1,099
Preneed cemetery trust investments									$	68,962
Fair market value as a percentage of cost									99.7		%

The cost and fair market values associated with preneed cemetery trust investments at December 31, 2012 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	758	$	—	$	—		$	758
Fixed income securities:
Foreign debt	2	2,008		450		—			2,458
Corporate debt	2	38,299		863		(507		)	38,655
Preferred stock	2	22,362		824		(294		)	22,892
Mortgage backed securities	2	1		—		—			1
Common stock	1	8,759		34		(1,526		)	7,267
Trust securities		$	72,187	$	2,171	$	(2,327	)	$	72,031
Accrued investment income		$	1,095						$	1,095
Preneed cemetery trust investments									$	73,126
Market value as a percentage of cost									99.8		%

Estimated maturities of fixed preneed cemetery trust income securities

The estimated maturities of the fixed income securities included above are as follows (in thousands):



Due in one year or less	$	—
Due in one to five years	7,291
Due in five to ten years	13,943
Thereafter	33,077
Total	$	54,311

Schedule of fair market value and unrealized loss on cemetery merchandise and service trust investments

Our cemetery merchandise and service trust investment unrealized losses, their associated fair market values, and the duration of unrealized losses as of September 30, 2013 and December 31, 2012, respectively, are shown in the following tables (in thousands):



	September 30, 2013
	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
Fixed income securities:
Foreign debt	$	2,438	$	(41	)	$	—	$	—		$	2,438	$	(41	)
Corporate debt	17,860		(616		)	836		(540		)	18,696		(1,156		)
Preferred stock	9,877		(435		)	—		—			9,877		(435		)
Common stock	4,085		(294		)	330		(134		)	4,415		(428		)
Total temporary impaired securities	$	34,260	$	(1,386	)	$	1,166	$	(674	)	$	35,426	$	(2,060	)



	December 31, 2012
	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
Fixed income securities:
Corporate debt	$	11,363	$	(325	)	$	622	$	(182	)	$	11,985	$	(507	)
Preferred stock	1,040		(54		)	2,284		(240		)	3,324		(294		)
Common stock	5,088		(934		)	957		(592		)	6,045		(1,526		)
Total temporary impaired securities	$	17,491	$	(1,313	)	$	3,863	$	(1,014	)	$	21,354	$	(2,327	)

Preneed cemetery trust investment security transactions

Preneed cemetery trust investment security transactions recorded in Interest expense, net of other income in the Consolidated Statements of Operations for the three and nine months ended September 30, 2012 and 2013 are as follows (in thousands):



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2012			2013			2012			2013
Investment income	$	760		$	671		$	2,812		$	2,436
Realized gains	2,020			835			7,074			2,420
Realized losses	(1,135		)	(94		)	(3,445		)	(668		)
Expenses and taxes	(368		)	(436		)	(2,393		)	(2,501		)
Decrease in deferred preneed cemetery receipts held in trust	(1,277		)	(976		)	(4,048		)	(1,687		)
	$	—		$	—		$	—		$	—

Purchases and sales of investments in preneed cemetary trusts

Purchases and sales of investments in the preneed cemetery trusts were as follows (in thousands):



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2012			2013			2012			2013
Purchases	$	(33,436	)	$	(18,569	)	$	(90,535	)	$	(34,273	)
Sales	33,393			16,409			90,885			35,229

Components of preneed funeral trust investments

The components of Preneed funeral trust investments in our Consolidated Balance Sheets at December 31, 2012 and September 30, 2013 are as follows (in thousands):



	December 31, 2012			September 30, 2013
Preneed funeral trust investments, at fair value	$	85,415		$	97,410
Less: allowance for contract cancellation	(2,519		)	(2,837		)
Preneed funeral trust investments, net	$	82,896		$	94,573

Estimated maturities of fixed preneed funeral trust income securities

The estimated maturities of the fixed income securities included above are as follows (in thousands):



Due in one year or less	$	383
Due in one to five years	7,470
Due in five to ten years	12,311
Thereafter	28,866
Total	$	49,030

Cost and fair market values associated with preneed funeral trust investments

The cost and fair market values associated with preneed funeral trust investments at December 31, 2012 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	13,448	$	—	$	—		$	13,448
Fixed income securities:
U.S. treasury debt	1	3,001		75		—			3,076
U.S. agency obligations	1	142		4		—			146
Foreign debt	2	1,217		273		—			1,490
Corporate debt	2	25,060		661		(331		)	25,390
Preferred stock	2	15,228		715		(193		)	15,750
Common stock	1	5,770		27		(996		)	4,801
Mutual funds:
Equity		11,843		487		(78		)	12,252
Fixed income	1	6,105		181		(40		)	6,246
Other investments	2	2,143		—		(15		)	2,128
Trust securities	2	$	83,957	$	2,423	$	(1,653	)	$	84,727
Accrued investment income		$	688						$	688
Preneed funeral trust investments									$	85,415
Market value as a percentage of cost									100.9		%

The cost and fair market values associated with preneed funeral trust investments at September 30, 2013 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	13,986	$	—	$	—		$	13,986
Fixed income securities:
U.S. treasury debt	1	2,388		52		(35		)	2,405
U.S. agency obligations	1	530		11		(6		)	535
Foreign debt	2	2,728		28		(33		)	2,723
Corporate debt	2	28,211		421		(950		)	27,682
Preferred stock	2	15,894		192		(402		)	15,684
Mortgage backed securities	2	1		—		—			1
Common stock	1	10,058		1,111		(349		)	10,820
Mutual funds:
Equity	1	11,534		2,117		(3		)	13,648
Fixed income	2	5,474		24		(154		)	5,344
Other investments	2	3,767		—		(26		)	3,741
Trust securities		$	94,571	$	3,956	$	(1,958	)	$	96,569
Accrued investment income		$	841						$	841
Preneed funeral trust investments									$	97,410
Fair market value as a percentage of cost									102.1		%

Schedule of fair market value and unrealized loss on preneed funeral trust investments

Our preneed funeral trust investment unrealized losses, their associated fair market values, and the duration of unrealized losses as of September 30, 2013 and December 31, 2012, respectively, are shown in the following tables (in thousands):



	September 30, 2013
	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
Fixed income securities:
U.S. debt	$	662	$	(35	)	$	—	$	—		$	662	$	(35	)
U.S. agency obligations	—		—			285		(6		)	285		(6		)
Foreign debt	1,901		(33		)	—		—			1,901		(33		)
Corporate debt	14,686		(506		)	688		(444		)	15,374		(950		)
Preferred stock	9,128		(402		)	—		—			9,128		(402		)
Common stock	—		—			—		—			—		—
Mutual funds:
Equity	3,335		(240		)	270		(109		)	3,605		(349		)
Equity and other	239		(3		)	—		—			239		(3		)
Fixed income	4,234		(154		)	—		—			4,234		(154		)
Other investments	—		—			44		(26		)	44		(26		)
Total temporary impaired securities	$	34,185	$	(1,373	)	$	1,287	$	(585	)	$	35,472	$	(1,958	)



	December 31, 2012
	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
Fixed income securities:
Corporate debt	$	7,419	$	(212	)	$	406	$	(119	)	$	7,825	$	(331	)
Preferred stock	685		(35		)	1,504		(158		)	2,189		(193		)
Common stock	3,323		(609		)	625		(387		)	3,948		(996		)
Mutual funds:
Equity	1,613		(25		)	632		(53		)	2,245		(78		)
Fixed income	3,085		(40		)	—		—			3,085		(40		)
Other investments	—		—			30		(15		)	30		(15		)
Total temporary impaired securities	$	16,125	$	(921	)	$	3,197	$	(732	)	$	19,322	$	(1,653	)

Preneed funeral trust investment security transactions

Preneed funeral trust investment security transactions recorded in Interest expense, net of other income in the Consolidated Statements of Operations for the three and nine months ended September 30, 2012 and 2013 are as follows (in thousands):



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2012			2013			2012			2013
Investment income	$	843		$	709		$	2,794		$	2,232
Realized gains	315			942			1,653			7,156
Realized losses	(190		)	(111		)	(2,367		)	(5,664		)
Expenses and taxes	(300		)	(269		)	(1,303		)	(1,324		)
Decrease in deferred preneed funeral receipts held in trust	(668		)	(1,271		)	(777		)	(2,400		)
	$	—		$	—		$	—		$	—

Purchases and sales of investments in preneed funeral trusts

Purchases and sales of investments in the preneed funeral trusts are as follows (in thousands):



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2012			2013			2012			2013
Purchases	$	(11,219	)	$	(17,266	)	$	(42,813	)	$	(28,355	)
Sales	11,485			15,697			43,278			29,924