Preneed Trust Investments (Tables)

3 Months Ended

Mar. 31, 2017

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, 2016 and March 31, 2017 were as follows (in thousands):



	December 31, 2016			March 31, 2017
Preneed cemetery trust investments, at market value	$	71,834		$	72,109
Less: allowance for contract cancellation	(2,138		)	(2,134		)
Preneed cemetery trust investments, net	$	69,696		$	69,975

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, 2016 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	10,852	$	—	$	—		$	10,852
Fixed income securities:
Municipal bonds	2	496		18		(4		)	510
Foreign debt	2	7,574		160		(656		)	7,078
Corporate debt	2	20,621		1,569		(1,123		)	21,067
Preferred stock	2	16,287		8		(947		)	15,348
Mortgage-backed securities	2	949		372		(4		)	1,317
Common stock	1	13,250		2,191		(1,838		)	13,603
Mutual funds:
Fixed income		1,223		107		—			1,330
Trust securities		$	71,252	$	4,425	$	(4,572	)	$	71,105
Accrued investment income		$	729						$	729
Preneed cemetery trust investments									$	71,834
Market value as a percentage of cost									99.8		%

The cost and fair market values associated with preneed cemetery trust investments at March 31, 2017 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	9,100	$	—	$	—		$	9,100
Fixed income securities:
Municipal bonds	2	494		8		(33		)	469
Foreign debt	2	6,121		235		(420		)	5,936
Corporate debt	2	19,699		1,161		(1,027		)	19,833
Preferred stock	2	16,224		34		(728		)	15,530
Mortgage-backed securities	2	1,068		336		(13		)	1,391
Common stock	1	17,228		2,708		(2,206		)	17,730
Mutual funds:
Fixed Income	2	1,216		120		—			1,336
Trust securities		$	71,150	$	4,602	$	(4,427	)	$	71,325
Accrued investment income		$	784						$	784
Preneed cemetery trust investments									$	72,109
Market value as a percentage of cost									100.2		%

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	$	167
Due in one to five years	4,603
Due in five to ten years	4,374
Thereafter	34,015
Total	$	43,159

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, 2017 are shown in the following table (in thousands):



	March 31, 2017
	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	$	399	$	(33	)	$	—	$	—		$	399	$	(33	)
Foreign debt	845		(20		)	2,553		(400		)	3,398		(420		)
Corporate debt	7,146		(529		)	1,715		(498		)	8,861		(1,027		)
Preferred stock	1,933		(64		)	11,750		(664		)	13,683		(728		)
Mortgage-backed securities	270		(13		)	—		—			270		(13		)
Common stock	4,652		(419		)	3,196		(1,787		)	7,848		(2,206		)
Total temporary impaired securities	$	15,245	$	(1,078	)	$	19,214	$	(3,349	)	$	34,459	$	(4,427	)

Our cemetery merchandise and service trust investment unrealized losses, their associated fair market values, and the duration of unrealized losses as of December 31, 2016 are shown in the following table (in thousands):



	December 31, 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	$	228	$	(4	)	$	—	$	—		$	228	$	(4	)
Foreign debt	2,523		(180		)	2,868		(475		)	5,391		(655		)
Corporate debt	6,939		(233		)	2,168		(890		)	9,107		(1,123		)
Preferred stock	3,217		(121		)	11,635		(826		)	14,852		(947		)
Mortgage-backed securities	51		(5		)	—		—			51		(5		)
Common stock	2,608		(202		)	3,385		(1,636		)	5,993		(1,838		)
Total temporary impaired securities	$	15,566	$	(745	)	$	20,056	$	(3,827	)	$	35,622	$	(4,572	)

Preneed cemetery trust investment security transactions

Preneed cemetery trust investment security transactions recorded in Other, net on our Consolidated Statements of Operations for the three months ended March 31, 2016 and 2017 were as follows (in thousands):



	For the Three Months Ended March 31,
	2016			2017
Investment income	$	291		$	589
Realized gains	108			820
Realized losses	(2,480		)	(383		)
Expenses and taxes	(343		)	(545		)
Decrease (increase) in deferred preneed cemetery receipts held in trust	2,424			(481		)
	$	—		$	—

Purchases and sales of investments in preneed cemetary trusts

Purchases and sales of investments in the preneed cemetery trusts for the three months ended March 31, 2016 and 2017 were as follows (in thousands):



	For the Three Months Ended March 31,
	2016			2017
Purchases	$	(10,892	)	$	(7,609	)
Sales	$	7,354		$	5,982

Components of preneed funeral trust investments

The components of Preneed funeral trust investments on our Consolidated Balance Sheets at December 31, 2016 and March 31, 2017 were as follows (in thousands):



	December 31, 2016			March 31, 2017
Preneed funeral trust investments, at market value	$	91,980		$	91,825
Less: allowance for contract cancellation	(2,740		)	(2,721		)
Preneed funeral trust investments, net	$	89,240		$	89,104

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	$	180
Due in one to five years	6,067
Due in five to ten years	4,697
Thereafter	35,855
Total	$	46,799

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, 2016 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	22,787	$	—	$	—		$	22,787
Fixed income securities:
U.S. treasury debt	1	1,491		21		(10		)	1,502
Municipal bonds	2	447		17		(4		)	460
Foreign debt	2	7,692		170		(677		)	7,185
Corporate debt	2	21,454		1,566		(1,134		)	21,886
Preferred stock	2	17,037		64		(970		)	16,131
Mortgage-backed securities	2	1,165		400		(5		)	1,560
Common stock	1	13,675		2,256		(1,850		)	14,081
Mutual funds:
Fixed income	2	2,124		115		(66		)	2,173
Other investments	2	3,463		—		—			3,463
Trust securities		$	91,335	$	4,609	$	(4,716	)	$	91,228
Accrued investment income		$	752						$	752
Preneed funeral trust investments									$	91,980
Market value as a percentage of cost									99.9		%

The cost and fair market values associated with preneed funeral trust investments at March 31, 2017 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	20,471	$	—	$	—		$	20,471
Fixed income securities:
U.S treasury debt	1	1,491		18		(7		)	1,502
Municipal bonds	2	446		9		(32		)	423
Foreign debt	2	6,159		249		(438		)	5,970
Corporate debt	2	20,736		1,195		(1,018		)	20,913
Preferred stock	2	16,996		103		(748		)	16,351
Mortgage-backed securities	2	1,291		363		(14		)	1,640
Common stock	1	17,551		2,818		(2,242		)	18,127
Mutual funds:
Fixed income	2	2,088		130		(60		)	2,158
Other investments	2	3,458		—		—			3,458
Trust securities		$	90,687	$	4,885	$	(4,559	)	$	91,013
Accrued investment income		$	812						$	812
Preneed funeral trust investments									$	91,825
Market value as a percentage of cost									100.4		%

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, 2017 are shown in the following table (in thousands):



	March 31, 2017
	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. treasury debt	$	836	$	(7	)	$	—	$	—		$	836	$	(7	)
Municipal bonds	349		(32		)	—		—			349		(32		)
Foreign debt	854		(22		)	2,581		(416		)	3,435		(438		)
Corporate debt	7,211		(510		)	1,790		(508		)	9,001		(1,018		)
Preferred stock	2,046		(68		)	11,881		(680		)	13,927		(748		)
Mortgage-backed securities	290		(13		)	10		(1		)	300		(14		)
Mutual funds:
Equity	4,781		(439		)	3,188		(1,803		)	7,969		(2,242		)
Fixed income	85		(4		)	631		(56		)	716		(60		)
Total temporary impaired securities	$	16,452	$	(1,095	)	$	20,081	$	(3,464	)	$	36,533	$	(4,559	)

Our preneed funeral trust investment unrealized losses, their associated fair market values, and the duration of unrealized losses as of December 31, 2016 are shown in the following table (in thousands):



	December 31, 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:
U.S. treasury debt	$	834	$	(10	)	$	—	$	—		$	834	$	(10	)
Municipal bonds	244		(5		)	—		—			244		(5		)
Foreign debt	2,654		(186		)	2,905		(490		)	5,559		(676		)
Corporate debt	6,977		(215		)	2,234		(919		)	9,211		(1,134		)
Preferred stock	3,420		(128		)	11,750		(842		)	15,170		(970		)
Mortgage-backed securities	55		(5		)	11		(1		)	66		(6		)
Mutual funds:
Equity	2,795		(216		)	3,390		(1,634		)	6,185		(1,850		)
Fixed income	97		(7		)	644		(58		)	741		(65		)
Total temporary impaired securities	$	17,076	$	(772	)	$	20,934	$	(3,944	)	$	38,010	$	(4,716	)

Preneed funeral trust investment security transactions

Preneed funeral trust investment security transactions recorded in Other, net on the Consolidated Statements of Operations for the three months ended March 31, 2016 and 2017 were as follows (in thousands):



	For the Three Months Ended March 31,
	2016			2017
Investment income	$	340		$	591
Realized gains	144			824
Realized losses	(2,396		)	(379		)
Expenses and taxes	(247		)	(339		)
Decrease (increase) in deferred preneed funeral receipts held in trust	2,159			(697		)
	$	—		$	—

Purchases and sales of investments in preneed funeral trusts

Purchases and sales of investments in the preneed funeral trusts for the three months ended March 31, 2016 and 2017 were as follows (in thousands):



	For the Three Months Ended March 31,
	2016			2017
Purchases	$	(11,407	)	$	(7,609	)
Sales	$	7,458		$	6,002