Preneed Trust Investments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2014 are as follows (in thousands):



	December 31, 2013			June 30, 2014
Preneed cemetery trust investments, at fair value	$	70,386		$	77,790
Less: allowance for contract cancellation	(2,045		)	(2,144		)
Preneed cemetery trust investments, net	$	68,341		$	75,646

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
Fair market value as a percentage of cost									102.0		%

The cost and fair market values associated with preneed cemetery trust investments at June 30, 2014 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	2,342	$	—	$	—		$	2,342
Fixed income securities:
Foreign debt	2	4,835		227		—			5,062
Corporate debt	2	30,451		906		(919		)	30,438
Preferred stock	2	18,271		916		(87		)	19,100
Mortgage backed securities	2	1		—		—			1
Common stock	1	15,566		4,757		(254		)	20,069
Trust securities		$	71,466	$	6,806	$	(1,260	)	$	77,012
Accrued investment income		$	778						$	778
Preneed cemetery trust investments									$	77,790
Fair market value as a percentage of cost									107.8		%

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	6,578
Due in five to ten years	8,752
Thereafter	39,271
Total	$	54,601

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 June 30, 2014 and December 31, 2013, are shown in the following tables (in thousands):



	June 30, 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:
Corporate debt	$	5,331	$	(395	)	$	2,015	$	(524	)	$	7,346	$	(919	)
Preferred stock	1,712		(16		)	3,371		(71		)	5,083		(87		)
Common stock	3,126		(220		)	102		(34		)	3,228		(254		)
Total temporary impaired securities	$	10,169	$	(631	)	$	5,488	$	(629	)	$	15,657	$	(1,260	)



	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 on our Consolidated Statements of Operations for the three and six months ended June 30, 2013 and 2014 were as follows (in thousands):



	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2013			2014			2013			2014
Investment income	$	1,072		$	889		$	1,765		$	1,432
Realized gains	1,547			1,161			1,585			1,700
Realized losses	(144		)	(640		)	(574		)	(828		)
Expenses and taxes	(1,684		)	(384		)	(2,065		)	(942		)
Decrease in deferred preneed cemetery receipts held in trust	(791		)	(1,026		)	(711		)	(1,362		)
	$	—		$	—		$	—		$	—

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 June 30,						For the Six Months Ended June 30,
	2013			2014			2013			2014
Purchases	$	(11,543	)	$	(13,498	)	$	(15,705	)	$	(21,658	)
Sales	$	13,811		$	14,383		$	18,820		$	22,921

Components of preneed funeral trust investments

The components of Preneed funeral trust investments on our Consolidated Balance Sheets at December 31, 2013 and June 30, 2014 were as follows (in thousands):



	December 31, 2013			June 30, 2014
Preneed funeral trust investments, at market value	$	100,005		$	103,237
Less: allowance for contract cancellation	(2,861		)	(2,890		)
Preneed funeral trust investments, net	$	97,144		$	100,347

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	$	571
Due in one to five years	6,403
Due in five to ten years	8,092
Thereafter	33,643
Total	$	48,709

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, 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 backed 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
Fair market value as a percentage of cost									104.2		%

The cost and fair market values associated with preneed funeral trust investments at June 30, 2014 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	13,967	$	—	$	—		$	13,967
Fixed income securities:
U.S. treasury debt	1	2,605		39		(28		)	2,616
U.S. agency obligations	2	31		—		—			31
Foreign debt	2	3,886		182		—			4,068
Corporate debt	2	25,165		898		(741		)	25,322
Preferred stock	2	15,561		832		(70		)	16,323
Mortgage backed securities	2	342		11		(4		)	349
Common stock	1	12,737		3,903		(210		)	16,430
Mutual funds:
Equity	1	13,858		1,378		(1		)	15,235
Fixed income	2	5,332		184		(64		)	5,452
Other investments	2	2,838		—		(29		)	2,809
Trust securities		$	96,322	$	7,427	$	(1,147	)	$	102,602
Accrued investment income		$	635						$	635
Preneed funeral trust investments									$	103,237
Fair market value as a percentage of cost									106.5		%

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 June 30, 2014 and December 31, 2013 are shown in the following tables (in thousands):



	June 30, 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	$	498	$	(2	)	$	826	$	(27	)	$	1,324	$	(29	)
Corporate debt	4,298		(318		)	1,624		(422		)	5,922		(740		)
Preferred stock	1,375		(13		)	2,709		(57		)	4,084		(70		)
Mortgage backed securities	—		—			86		(4		)	86		(4		)
Mutual funds:
Equity	2,589		(182		)	85		(28		)	2,674		(210		)
Equity and other	61		—			20		(1		)	81		(1		)
Fixed income	219		—			1,457		(64		)	1,676		(64		)
Other investments	—		—			44		(29		)	44		(29		)
Total temporary impaired securities	$	9,040	$	(515	)	$	6,851	$	(632	)	$	15,891	$	(1,147	)



	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 on the Consolidated Statements of Operations for the three and six months ended June 30, 2013 and 2014 were as follows (in thousands):



	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2013			2014			2013			2014
Investment income	$	917		$	846		$	1,523		$	1,491
Realized gains	1,087			2,937			6,214			3,431
Realized losses	(221		)	(538		)	(5,553		)	(736		)
Expenses and taxes	(807		)	(493		)	(1,055		)	(898		)
Decrease in deferred preneed funeral receipts held in trust	(976		)	(2,752		)	(1,129		)	(3,288		)
	$	—		$	—		$	—		$	—

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 June 30,						For the Six Months Ended June 30,
	2013			2014			2013			2014
Purchases	$	(7,903	)	$	(22,526	)	$	(11,089	)	$	(29,517	)
Sales	$	10,313		$	22,612		$	14,228		$	30,149