Preneed Trust Investments (Tables)

3 Months Ended

Mar. 31, 2014

Preneed Trust Investments [Abstract]

Components of preneed cemetery trust investments

The components of Preneed cemetery trust investments on our Consolidated Balance Sheets at December 31, 2013 and March 31, 2014 are as follows (in thousands):



	December 31, 2013			March 31, 2014
Preneed cemetery trust investments, at fair value	$	70,386		$	71,510
Less: allowance for contract cancellation	(2,045		)	(2,035		)
Preneed cemetery trust investments, net	$	68,341		$	69,475

Cost and fair market values associated with preneed cemetery trust investments

The cost and fair market values associated with preneed cemetery trust investments at December 31, 2013 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	1,541	$	—	$	—		$	1,541
Fixed income securities:
Foreign debt	2	3,460		146		(3		)	3,603
Corporate debt	2	32,958		386		(1,150		)	32,194
Preferred stock	2	17,754		178		(273		)	17,659
Mortgage backed securities	2	1		—		—			1
Common stock	1	12,431		2,362		(267		)	14,526
Trust securities		$	68,145	$	3,072	$	(1,693	)	$	69,524
Accrued investment income		$	862						$	862
Preneed cemetery trust investments									$	70,386
Market value as a percentage of cost									102.0		%

The cost and fair market values associated with preneed cemetery trust investments at March 31, 2014 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	910	$	—	$	—		$	910
Fixed income securities:
Foreign debt	2	3,938		247		(5		)	4,180
Corporate debt	2	30,699		524		(1,385		)	29,838
Preferred stock	2	18,475		612		(142		)	18,945
Mortgage backed securities	2	1		—		—			1
Common stock	1	13,810		3,378		(585		)	16,603
Trust securities		$	67,833	$	4,761	$	(2,117	)	$	70,477
Accrued investment income		$	1,033						$	1,033
Preneed cemetery trust investments									$	71,510
Fair market value as a percentage of cost									103.9		%

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	6,364
Due in five to ten years	9,873
Thereafter	36,727
Total	$	52,964

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 March 31, 2014 and December 31, 2013, are shown in the following tables (in thousands):



	March 31, 2014
	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	$	433	$	(5	)	$	—	$	—		$	433	$	(5	)
Corporate debt	5,994		(598		)	2,860		(787		)	8,854		(1,385		)
Preferred stock	4,959		(142		)	—		—			4,959		(142		)
Common stock	2,850		(570		)	98		(15		)	2,948		(585		)
Total temporary impaired securities	$	14,236	$	(1,315	)	$	2,958	$	(802	)	$	17,194	$	(2,117	)



	December 31, 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	$	802	$	(3	)	$	—	$	—		$	802	$	(3	)
Corporate debt	11,561		(553		)	769		(597		)	12,330		(1,150		)
Preferred stock	9,601		(273		)	—		—			9,601		(273		)
Common stock	1,077		(171		)	705		(96		)	1,782		(267		)
Total temporary impaired securities	$	23,041	$	(1,000	)	$	1,474	$	(693	)	$	24,515	$	(1,693	)

Preneed cemetery trust investment security transactions

Preneed cemetery trust investment security transactions recorded in Interest expense in our Consolidated Statements of Operations for the three months ended March 31, 2013 and 2014 were as follows (in thousands):



	For the Three Months Ended March 31,
	2013			2014
Investment income	$	693		$	543
Realized gains	38			539
Realized losses	(430		)	(188		)
Expenses and taxes	(381		)	(558		)
Increase (decrease) in deferred preneed cemetery receipts held in trust	80			(336		)
	$	—		$	—

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 March 31,
	2013			2014
Purchases	$	(4,161	)	$	(8,160	)
Sales	5,009			8,537

Components of preneed funeral trust investments

The components of Preneed funeral trust investments on our Consolidated Balance Sheets at December 31, 2013 and March 31, 2014 were as follows (in thousands):



	December 31, 2013			March 31, 2014
Preneed funeral trust investments, at market value	$	100,005		$	103,104
Less: allowance for contract cancellation	(2,861		)	(2,900		)
Preneed funeral trust investments, net	$	97,144		$	100,204

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	$	676
Due in one to five years	6,153
Due in five to ten years	9,021
Thereafter	33,030
Total	$	48,880

Cost and fair market values associated with preneed funeral trust investments

The cost and fair market values associated with preneed funeral trust investments at March 31, 2014 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	14,531	$	—	$	—		$	14,531
Fixed income securities:
U.S. treasury debt	1	2,210		41		(41		)	2,210
U.S. agency obligations	2	388		9		(5		)	392
Foreign debt	2	3,146		198		(4		)	3,340
Corporate debt	2	26,183		597		(1,120		)	25,660
Preferred stock	2	16,712		678		(113		)	17,277
Mortgage backed securities	2	1		—		—			1
Common stock	1	11,997		3,015		(543		)	14,469
Mutual funds:
Equity	1	11,710		2,902		(5		)	14,607
Fixed income	2	5,399		144		(113		)	5,430
Other investments	2	4,379		—		(26		)	4,353
Trust securities		$	96,656	$	7,584	$	(1,970	)	$	102,270
Accrued investment income		$	834						$	834
Preneed funeral trust investments									$	103,104
Fair market value as a percentage of cost									105.8		%

The cost and fair market values associated with preneed funeral trust investments at December 31, 2013 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	14,631	$	—	$	—		$	14,631
Fixed income securities:
U.S. treasury debt	1	2,212		47		(54		)	2,205
U.S. agency obligations	1	401		8		(7		)	402
Foreign debt	2	2,726		115		(2		)	2,839
Corporate debt	2	27,993		375		(957		)	27,411
Preferred stock	2	15,949		292		(282		)	15,959
Mortgage back securities	2	1		—		—			1
Common stock	1	10,681		2,092		(237		)	12,536
Mutual funds:
Equity	1	11,632		2,708		(22		)	14,318
Fixed income	2	5,455		88		(179		)	5,364
Other investments	2	3,686		—		(26		)	3,660
Trust securities		$	95,367	$	5,725	$	(1,766	)	$	99,326
Accrued investment income		$	679						$	679
Preneed funeral trust investments									$	100,005
Market value as a percentage of cost									104.2		%

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 March 31, 2014 and December 31, 2013, are shown in the following tables (in thousands):



	March 31, 2014
	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	$	—	$	—		$	828	$	(41	)	$	828	$	(41	)
U.S. agency obligations	—		—			152		(5		)	152		(5		)
Foreign debt	346		(4		)	—		—			346		(4		)
Corporate debt	4,845		(484		)	2,312		(636		)	7,157		(1,120		)
Preferred stock	3,961		(113		)	—		—			3,961		(113		)
Mutual funds:
Equity	2,645		(528		)	91		(14		)	2,736		(542		)
Equity and other	74		(2		)	62		(4		)	136		(6		)
Fixed income	474		(17		)	1,593		(96		)	2,067		(113		)
Other investments	—		—			44		(26		)	44		(26		)
Total temporary impaired securities	$	12,345	$	(1,148	)	$	5,082	$	(822	)	$	17,427	$	(1,970	)



	December 31, 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	$	—	$	—		$	816	$	(54	)	$	816	$	(54	)
U.S. agency obligations	—		—			211		(7		)	211		(7		)
Foreign debt	632		(2		)	—		—			632		(2		)
Corporate debt	9,620		(460		)	640		(497		)	10,260		(957		)
Preferred stock	9,918		(282		)	—		—			9,918		(282		)
Mutual funds:
Equity	954		(152		)	626		(85		)	1,580		(237		)
Equity and other	314		(13		)	195		(9		)	509		(22		)
Fixed income	865		(43		)	1,420		(136		)	2,285		(179		)
Other investments	—		—			44		(26		)	44		(26		)
Total temporary impaired securities	$	22,303	$	(952	)	$	3,952	$	(814	)	$	26,255	$	(1,766	)

Preneed funeral trust investment security transactions

Preneed funeral trust investment security transactions recorded in Interest expense in the Consolidated Statements of Operations for the three months ended March 31, 2013 and 2014 were as follows (in thousands):



	For the Three Months Ended March 31,
	2013			2014
Investment income	$	606		$	645
Realized gains	5,127			494
Realized losses	(5,332		)	(198		)
Expenses and taxes	(248		)	(405		)
Decrease in deferred preneed funeral receipts held in trust	(153		)	(536		)
	$	—		$	—

Purchases and sales of investments in preneed funeral trusts

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



	For the Three Months Ended March 31,
	2013			2014
Purchases	$	(3,186	)	$	(6,990	)
Sales	3,915			7,537