Preneed Trust Investments (Tables)

6 Months Ended

Jun. 30, 2016

Jun. 30, 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, 2015 and June 30, 2016 were as follows (in thousands):



	December 31, 2015			June 30, 2016
Preneed cemetery trust investments, at market value	$	65,486		$	63,887
Less: allowance for contract cancellation	(2,195		)	(2,112		)
Preneed cemetery trust investments, net	$	63,291		$	61,775

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, 2015 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	8,296	$	—	$	—		$	8,296
Fixed income securities:
Municipal bonds	2	458		—		(63		)	395
Foreign debt	2	4,803		—		(695		)	4,108
Corporate debt	2	22,968		85		(4,279		)	18,774
Preferred stock	2	16,236		29		(885		)	15,380
Common stock	1	20,387		682		(3,161		)	17,908
Trust securities		$	73,148	$	796	$	(9,083	)	$	64,861
Accrued investment income		$	625						$	625
Preneed cemetery trust investments									$	65,486
Market value as a percentage of cost									88.7		%

The cost and fair market values associated with preneed cemetery trust investments at June 30, 2016 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	2,976	$	—	$	—		$	2,976
Fixed income securities:
Municipal bonds	2	604		—		(99		)	505
Foreign debt	2	8,548		134		(837		)	7,845
Corporate debt	2	27,676		1,337		(2,348		)	26,665
Preferred stock	2	16,272		8		(1,308		)	14,972
Common stock	1	13,119		143		(4,465		)	8,797
Mutual funds:
Fixed Income	2	1,221		74		—			1,295
Trust securities		$	70,416	$	1,696	$	(9,057	)	$	63,055
Accrued investment income		$	832						$	832
Preneed cemetery trust investments									$	63,887
Market value as a percentage of cost									89.5		%

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	$	135
Due in one to five years	9,870
Due in five to ten years	6,816
Thereafter	33,166
Total	$	49,987

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, 2016 and December 31, 2015, are shown in the following tables (in thousands):



	June 30, 2016
	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	$	141	$	(4	)	$	363	$	(95	)	$	504	$	(99	)
Foreign debt	3,149		(213		)	2,401		(624		)	5,550		(837		)
Corporate debt	3,494		(382		)	9,097		(1,966		)	12,591		(2,348		)
Preferred stock	381		(9		)	14,142		(1,299		)	14,523		(1,308		)
Common stock	5,665		(2,968		)	2,038		(1,497		)	7,703		(4,465		)
Total temporary impaired securities	$	12,830	$	(3,576	)	$	28,041	$	(5,481	)	$	40,871	$	(9,057	)



	December 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	$	395	$	(63	)	$	—	$	—		$	395	$	(63	)
Foreign debt	3,680		(384		)	406		(312		)	4,086		(696		)
Corporate debt	14,468		(2,992		)	3,056		(1,287		)	17,524		(4,279		)
Preferred stock	10,285		(436		)	5,168		(448		)	15,453		(884		)
Common stock	12,029		(1,989		)	3,564		(1,172		)	15,593		(3,161		)
Total temporary impaired securities	$	40,857	$	(5,864	)	$	12,194	$	(3,219	)	$	53,051	$	(9,083	)

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, 2015 and 2016 were as follows (in thousands):



	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2015			2016			2015			2016
Investment income	$	774		$	677		$	1,291		$	968
Realized gains	1,316			181			1,674			289
Realized losses	(92		)	(928		)	(890		)	(3,408		)
Expenses and taxes	(775		)	(350		)	(1,094		)	(693		)
Decrease (increase) in deferred preneed cemetery receipts held in trust	(1,223		)	420			(981		)	2,844
	$	—		$	—		$	—		$	—

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,
	2015			2016			2015			2016
Purchases	$	(5,848	)	$	(7,215	)	$	(12,855	)	$	(18,106	)
Sales	$	7,441		$	4,676		$	10,193		$	12,030

Components of preneed funeral trust investments

The components of Preneed funeral trust investments on our Consolidated Balance Sheets at December 31, 2015 and June 30, 2016 were as follows (in thousands):



	December 31, 2015			June 30, 2016
Preneed funeral trust investments, at market value	$	88,444		$	86,213
Less: allowance for contract cancellation	(2,891		)	(2,784		)
Preneed funeral trust investments, net	$	85,553		$	83,429

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	$	143
Due in one to five years	9,968
Due in five to ten years	8,545
Thereafter	34,977
Total	$	53,633

Cost and fair market values associated with preneed funeral trust investments

The cost and fair market values associated with preneed funeral trust investments at June 30, 2016 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	16,966	$	—	$	—		$	16,966
Fixed income securities:
U.S treasury debt	1	1,491		61		—			1,552
Municipal bonds	2	553		—		(100		)	453
Foreign debt	2	8,688		135		(855		)	7,968
Corporate debt	2	28,748		1,394		(2,423		)	27,719
Preferred stock	2	16,933		76		(1,330		)	15,679
Mortgage backed securities	2	263		4		(5		)	262
Common stock	1	13,473		127		(4,614		)	8,986
Mutual funds:
Fixed income	2	2,183		81		(23		)	2,241
Other investments	2	3,492		—		(2		)	3,490
Trust securities		$	92,790	$	1,878	$	(9,352	)	$	85,316
Accrued investment income		$	897						$	897
Preneed funeral trust investments									$	86,213
Market value as a percentage of cost									91.9		%

The cost and fair market values associated with preneed funeral trust investments at December 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	$	21,458	$	—	$	—		$	21,458
Fixed income securities:
U.S. treasury debt	1	1,492		24		(12		)	1,504
Municipal bonds	2	478		—		(66		)	412
Foreign debt	2	4,938		—		(711		)	4,227
Corporate debt	2	24,787		133		(4,711		)	20,209
Preferred stock	2	17,496		158		(914		)	16,740
Mortgage backed securities	2	273		4		(4		)	273
Common stock	1	20,864		738		(3,114		)	18,488
Mutual funds:
Fixed income	2	959		—		(82		)	877
Other investments	2	3,598		—		(30		)	3,568
Trust securities		$	96,343	$	1,057	$	(9,644	)	$	87,756
Accrued investment income		$	688						$	688
Preneed funeral trust investments									$	88,444
Market value as a percentage of cost									91.1		%

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 June 30, 2016 and December 31, 2015 are shown in the following tables (in thousands):



	June 30, 2016
	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	$	80	$	(2	)	$	373	$	(98	)	$	453	$	(100	)
Foreign debt	3,276		(220		)	2,433		(635		)	5,709		(855		)
Corporate debt	3,478		(397		)	9,343		(2,026		)	12,821		(2,423		)
Preferred stock	379		(8		)	14,381		(1,322		)	14,760		(1,330		)
Mortgage backed securities	100		(4		)	13		(1		)	113		(5		)
Mutual funds:
Equity	5,963		(3,138		)	1,982		(1,476		)	7,945		(4,614		)
Fixed income	—		—			853		(23		)	853		(23		)
Other investments	—		—			—		(2		)	—		(2		)
Total temporary impaired securities	$	13,276	$	(3,769	)	$	29,378	$	(5,583	)	$	42,654	$	(9,352	)



	December 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	$	—	$	—		$	1,504	$	(12	)	$	1,504	$	(12	)
Municipal bonds	413		(66		)	—		—			413		(66		)
Foreign debt	3,763		(392		)	416		(319		)	4,179		(711		)
Corporate debt	15,929		(3,294		)	3,364		(1,417		)	19,293		(4,711		)
Preferred stock	10,623		(451		)	5,338		(463		)	15,961		(914		)
Mortgage backed securities	—		—			272		(4		)	272		(4		)
Mutual funds:
Equity	11,848		(1,959		)	3,510		(1,154		)	15,358		(3,113		)
Fixed income	1		—			876		(82		)	877		(82		)
Other investments	—		—			42		(31		)	42		(31		)
Total temporary impaired securities	$	42,577	$	(6,162	)	$	15,322	$	(3,482	)	$	57,899	$	(9,644	)

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, 2015 and 2016 were as follows (in thousands):



	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2015			2016			2015			2016
Investment income	$	872		$	703		$	1,428		$	1,043
Realized gains	2,279			250			2,573			394
Realized losses	(245		)	(978		)	(870		)	(3,374		)
Expenses and taxes	(574		)	(446		)	(834		)	(693		)
Decrease (increase) in deferred preneed funeral receipts held in trust	(2,332		)	471			(2,297		)	2,630
	$	—		$	—		$	—		$	—

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,
	2015			2016			2015			2016
Purchases	$	(5,856	)	$	(7,024	)	$	(11,345	)	$	(18,431	)
Sales	$	20,435		$	5,211		$	22,738		$	12,669