Preneed Trust Investments (Tables)

9 Months Ended

Sep. 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 September 30, 2014 were as follows (in thousands):



	December 31, 2013			September 30, 2014
Preneed cemetery trust investments, at fair value	$	70,386		$	75,271
Less: allowance for contract cancellation	(2,045		)	(2,199		)
Preneed cemetery trust investments, net	$	68,341		$	73,072

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 September 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	$	2,428	$	—	$	—		$	2,428
Fixed income securities:
Municipal bonds	2	344		12		—			356
Foreign debt	2	4,945		91		(102		)	4,934
Corporate debt	2	30,384		433		(1,984		)	28,833
Preferred stock	2	18,432		647		(203		)	18,876
Mortgage backed securities	2	1		—		—			1
Common stock	1	16,756		3,019		(948		)	18,827
Trust securities		$	73,290	$	4,202	$	(3,237	)	$	74,255
Accrued investment income		$	1,016						$	1,016
Preneed cemetery trust investments									$	75,271
Fair market value as a percentage of cost									101.3		%

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	6,299
Due in five to ten years	7,670
Thereafter	39,031
Total	$	53,000

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



	September 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:
Foreign debt	$	4,039	$	(102	)	$	—	$	—		$	4,039	$	(102	)
Corporate debt	19,306		(846		)	2,224		(1,137		)	21,530		(1,983		)
Preferred stock	6,456		(191		)	3,238		(12		)	9,694		(203		)
Common stock	9,520		(911		)	81		(38		)	9,601		(949		)
Total temporary impaired securities	$	39,321	$	(2,050	)	$	5,543	$	(1,187	)	$	44,864	$	(3,237	)



	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 nine months ended September 30, 2013 and 2014 were as follows (in thousands):



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2013			2014			2013			2014
Investment income	$	671		$	504		$	2,436		$	1,936
Realized gains	835			1,970			2,420			3,670
Realized losses	(94		)	(124		)	(668		)	(952		)
Expenses and taxes	(436		)	(387		)	(2,501		)	(1,329		)
Increase in deferred preneed cemetery receipts held in trust	(976		)	(1,963		)	(1,687		)	(3,325		)
	$	—		$	—		$	—		$	—

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,
	2013			2014			2013			2014
Purchases	$	(18,569	)	$	(17,814	)	$	(34,273	)	$	(39,472	)
Sales	$	16,409		$	18,061		$	35,229		$	40,981

Components of preneed funeral trust investments

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



	December 31, 2013			September 30, 2014
Preneed funeral trust investments, at market value	$	100,005		$	101,480
Less: allowance for contract cancellation	(2,861		)	(2,955		)
Preneed funeral trust investments, net	$	97,144		$	98,525

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	$	855
Due in one to five years	6,162
Due in five to ten years	7,013
Thereafter	33,311
Total	$	47,341

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 September 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	$	14,018	$	—	$	—		$	14,018
Fixed income securities:
U.S. treasury debt	1	2,602		34		(34		)	2,602
U.S. agency obligations	2	31		—		(1		)	30
Foreign debt	2	3,961		73		(82		)	3,952
Corporate debt	2	25,294		527		(1,595		)	24,226
Preferred stock	2	15,777		588		(163		)	16,202
Mortgage backed securities	2	323		9		(3		)	329
Common stock	1	13,611		2,475		(782		)	15,304
Mutual funds:
Equity	1	13,991		1,237		(118		)	15,110
Fixed income	2	5,280		105		(85		)	5,300
Other investments	2	3,614		—		(31		)	3,583
Trust securities		$	98,502	$	5,048	$	(2,894	)	$	100,656
Accrued investment income		$	824						$	824
Preneed funeral trust investments									$	101,480
Fair market value as a percentage of cost									102.2		%

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



	September 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	$	1,320	$	(6	)	$	822	$	(29	)	$	2,142	$	(35	)
U.S. agency obligations	30		—			—		—			30		—
Foreign debt	3,234		(82		)	—		—			3,234		(82		)
Corporate debt	15,519		(680		)	1,787		(914		)	17,306		(1,594		)
Preferred stock	5,195		(154		)	2,606		(10		)	7,801		(164		)
Mortgage backed securities	—		—			63		(3		)	63		(3		)
Mutual funds:
Equity	7,848		(751		)	67		(31		)	7,915		(782		)
Equity and other	9,315		(116		)	1,917		(2		)	11,232		(118		)
Fixed income	462		(9		)	4,838		(76		)	5,300		(85		)
Other investments	—		—			44		(31		)	44		(31		)
Total temporary impaired securities	$	42,923	$	(1,798	)	$	12,144	$	(1,096	)	$	55,067	$	(2,894	)



	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 nine months ended September 30, 2013 and 2014 were as follows (in thousands):



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2013			2014			2013			2014
Investment income	$	709		$	576		$	2,232		$	2,067
Realized gains	942			1,605			7,156			5,036
Realized losses	(111		)	(105		)	(5,664		)	(841		)
Expenses and taxes	(269		)	(260		)	(1,324		)	(1,158		)
Increase in deferred preneed funeral receipts held in trust	(1,271		)	(1,816		)	(2,400		)	(5,104		)
	$	—		$	—		$	—		$	—

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 September 30,						For the Nine Months Ended September 30,
	2013			2014			2013			2014
Purchases	$	(17,266	)	$	(14,630	)	$	(28,355	)	$	(44,147	)
Sales	$	15,697		$	14,691		$	29,924		$	44,840