Preneed Trust Investments (Tables)

3 Months Ended

Mar. 31, 2015

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, 2014 and March 31, 2015 were as follows (in thousands):



	December 31, 2014			March 31, 2015
Preneed cemetery trust investments, at fair value	$	74,198		$	74,742
Less: allowance for contract cancellation	(2,226		)	(2,208		)
Preneed cemetery trust investments, net	$	71,972		$	72,534

Cost and fair market values associated with preneed cemetery trust investments

The cost and fair market values associated with preneed cemetery trust investments at March 31, 2015 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	1,028	$	—	$	—		$	1,028
Fixed income securities:
Municipal bonds	2	348		—		(12		)	336
Foreign debt	2	6,060		72		(261		)	5,871
Corporate debt	2	29,393		494		(987		)	28,900
Preferred stock	2	18,828		343		(300		)	18,871
Common stock	1	17,952		2,235		(1,484		)	18,703
Trust securities		$	73,609	$	3,144	$	(3,044	)	$	73,709
Accrued investment income		$	1,033						$	1,033
Preneed cemetery trust investments									$	74,742
Market value as a percentage of cost									100.1		%

The cost and fair market values associated with preneed cemetery trust investments at December 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	$	5,591	$	—	$	—		$	5,591
Fixed income securities:
Municipal bonds	2	347		9		—			356
Foreign debt	2	5,874		—		(237		)	5,637
Corporate debt	2	30,108		362		(2,167		)	28,303
Preferred stock	2	19,154		199		(325		)	19,028
Mortgage backed securities	2	1		—		—			1
Common stock	1	13,128		2,357		(966		)	14,519
Trust securities		$	74,203	$	2,927	$	(3,695	)	$	73,435
Accrued investment income		$	763						$	763
Preneed cemetery trust investments									$	74,198
Market value as a percentage of cost									99.0		%

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	$	18
Due in one to five years	5,998
Due in five to ten years	7,154
Thereafter	40,808
Total	$	53,978

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, 2015 and December 31, 2014, are shown in the following tables (in thousands):



	March 31, 2015
	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:
Municipal bonds	$	336	$	(12	)	$	—	$	—		$	336	$	(12	)
Foreign debt	3,579		(261		)	—		—			3,579		(261		)
Corporate debt	18,431		(448		)	2,488		(539		)	20,919		(987		)
Preferred stock	7,340		(235		)	4,734		(65		)	12,074		(300		)
Common stock	14,623		(1,360		)	139		(124		)	14,762		(1,484		)
Total temporary impaired securities	$	44,309	$	(2,316	)	$	7,361	$	(728	)	$	51,670	$	(3,044	)



	December 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	$	5,629	$	(237	)	$	—	$	—		$	5,629	$	(237	)
Corporate debt	18,051		(778		)	2,016		(1,389		)	20,067		(2,167		)
Preferred stock	10,342		(289		)	3,236		(36		)	13,578		(325		)
Common stock	6,904		(911		)	65		(55		)	6,969		(966		)
Total temporary impaired securities	$	40,926	$	(2,215	)	$	5,317	$	(1,480	)	$	46,243	$	(3,695	)

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 months ended March 31, 2014 and 2015 were as follows (in thousands):



	For the Three Months Ended March 31,
	2014			2015
Investment income	$	543		$	517
Realized gains	539			358
Realized losses	(188		)	(798		)
Expenses and taxes	(558		)	(319		)
(Increase) decrease in deferred preneed cemetery receipts held in trust	(336		)	242
	$	—		$	—

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,
	2014			2015
Purchases	$	(8,160	)	$	(7,008	)
Sales	$	8,537		$	2,752

Components of preneed funeral trust investments

The components of Preneed funeral trust investments on our Consolidated Balance Sheets at December 31, 2014 and March 31, 2015 were as follows (in thousands):



	December 31, 2014			March 31, 2015
Preneed funeral trust investments, at market value	$	100,579		$	100,162
Less: allowance for contract cancellation	(2,972		)	(2,922		)
Preneed funeral trust investments, net	$	97,607		$	97,240

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	$	562
Due in one to five years	5,415
Due in five to ten years	6,476
Thereafter	34,091
Total	$	46,544

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, 2015 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	13,589	$	—	$	—		$	13,589
Fixed income securities:
U.S treasury debt	1	2,035		40		—			2,075
U.S. agency obligations	2	30		1		—			31
Municipal bonds	2	272		—		(10		)	262
Foreign debt	2	4,740		56		(206		)	4,590
Corporate debt	2	23,619		556		(771		)	23,404
Preferred stock	2	15,721		397		(235		)	15,883
Mortgage backed securities	2	295		6		(2		)	299
Common stock	1	14,179		1,803		(1,183		)	14,799
Mutual funds:
Equity	1	14,082		1,547		(97		)	15,532
Fixed income	2	5,296		139		(54		)	5,381
Other investments	2	3,529		—		(31		)	3,498
Trust securities		$	97,387	$	4,545	$	(2,589	)	$	99,343
Accrued investment income		$	819						$	819
Preneed funeral trust investments									$	100,162
Market value as a percentage of cost									102.0		%

The cost and fair market values associated with preneed funeral trust investments at December 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	$	17,501	$	—	$	—		$	17,501
Fixed income securities:
U.S. treasury debt	1	2,037		32		(15		)	2,054
U.S. agency obligations	2	30		—		—			30
Foreign debt	2	4,653		—		(188		)	4,465
Corporate debt	2	24,761		469		(1,718		)	23,512
Preferred stock	2	16,166		256		(261		)	16,161
Mortgage backed securities	2	309		8		(3		)	314
Common stock	1	10,544		1,926		(783		)	11,687
Mutual funds:
Equity	1	14,126		1,370		(181		)	15,315
Fixed income	2	5,351		115		(72		)	5,394
Other investments	2	3,560		—		(29		)	3,531
Trust securities		$	99,038	$	4,176	$	(3,250	)	$	99,964
Accrued investment income		$	615						$	615
Preneed funeral trust investments									$	100,579
Market value as a percentage of cost									100.9		%

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, 2015 and December 31, 2014 are shown in the following tables (in thousands):



	March 31, 2015
	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	$	259	$	—		$	—	$	—		$	259	$	—
Municipal bonds	262		(10		)	—		—			262		(10		)
Foreign debt	2,825		(206		)	—		—			2,825		(206		)
Corporate debt	14,413		(350		)	1,946		(422		)	16,359		(772		)
Preferred stock	5,754		(184		)	3,711		(51		)	9,465		(235		)
Mortgage backed securities	—		—			45		(2		)	45		(2		)
Mutual funds:
Equity	11,655		(1,084		)	110		(98		)	11,765		(1,182		)
Equity and other	6,576		(97		)	1,114		—			7,690		(97		)
Fixed income	2,784		(23		)	701		(31		)	3,485		(54		)
Other investments	—		—			42		(31		)	42		(31		)
Total temporary impaired securities	$	44,528	$	(1,954	)	$	7,669	$	(635	)	$	52,197	$	(2,589	)



	December 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	$	500	$	—		$	836	$	(15	)	$	1,336	$	(15	)
Foreign debt	4,471		(188		)	—		—			4,471		(188		)
Corporate debt	14,310		(617		)	1,598		(1,101		)	15,908		(1,718		)
Preferred stock	8,300		(232		)	2,597		(29		)	10,897		(261		)
Mortgage backed securities	—		—			51		(3		)	51		(3		)
Mutual funds:
Equity	5,594		(739		)	53		(44		)	5,647		(783		)
Equity and other	4,204		(180		)	6		(1		)	4,210		(181		)
Fixed income	888		(19		)	1,026		(53		)	1,914		(72		)
Other investments	—		—			42		(29		)	42		(29		)
Total temporary impaired securities	$	38,267	$	(1,975	)	$	6,209	$	(1,275	)	$	44,476	$	(3,250	)

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 months ended March 31, 2014 and 2015 were as follows (in thousands):



	For the Three Months Ended March 31,
	2014			2015
Investment income	$	645		$	556
Realized gains	494			294
Realized losses	(198		)	(625		)
Expenses and taxes	(405		)	(260		)
(Increase) decrease in deferred preneed funeral receipts held in trust	(536		)	35
	$	—		$	—

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,
	2014			2015
Purchases	$	(6,990	)	$	(5,489	)
Sales	$	7,537		$	2,302