Preneed Trust Investments (Tables)

3 Months Ended

Mar. 31, 2018

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, 2017 and March 31, 2018 were as follows (in thousands):



	December 31, 2017			March 31, 2018
Preneed cemetery trust investments, at market value	$	75,992		$	72,450
Less: allowance for contract cancellation	(2,139		)	(2,154		)
Preneed cemetery trust investments, net	$	73,853		$	70,296

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, 2018 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	7,366	$	—	$	—		$	7,366
Fixed income securities:
Foreign debt	2	4,848		193		(244		)	4,797
Corporate debt	2	15,665		733		(665		)	15,733
Preferred stock	2	16,471		118		(751		)	15,838
Mortgage-backed securities	2	1,015		281		(26		)	1,270
Common stock	1	25,216		4,074		(3,783		)	25,507
Mutual funds:
Fixed Income	2	1,202		27		(43		)	1,186
Trust securities		$	71,783	$	5,426	$	(5,512	)	$	71,697
Accrued investment income		$	753						$	753
Preneed cemetery trust investments									$	72,450
Market value as a percentage of cost									99.9		%

The cost and fair market values associated with preneed cemetery trust investments at December 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	$	3,132	$	—	$	—		$	3,132
Fixed income securities:
Foreign debt	2	4,834		292		(193		)	4,933
Corporate debt	2	18,238		1,184		(273		)	19,149
Preferred stock	2	16,421		510		(588		)	16,343
Mortgage-backed securities	2	1,018		249		(24		)	1,243
Common stock	1	26,465		5,250		(2,460		)	29,255
Mutual funds:
Fixed income	2	1,198		50		(11		)	1,237
Trust securities		$	71,306	$	7,535	$	(3,549	)	$	75,292
Accrued investment income		$	700						$	700
Preneed cemetery trust investments									$	75,992
Market value as a percentage of cost									105.6		%

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	2,177
Due in five to ten years	2,561
Thereafter	32,900
Total	$	37,638

Schedule of fair market value and unrealized loss on cemetery merchandise and service trust investments

Our preneed cemetery trust investment unrealized losses, their associated fair market values, and the duration of unrealized losses as of March 31, 2018 are shown in the following table (in thousands):



	March 31, 2018
	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	$	519	$	(20	)	$	1,605	$	(224	)	$	2,124	$	(244	)
Corporate debt	6,987		(464		)	768		(201		)	7,755		(665		)
Preferred stock	4,731		(43		)	8,295		(708		)	13,026		(751		)
Mortgage-backed securities	75		—			73		(26		)	148		(26		)
Common stock	12,001		(2,461		)	1,666		(1,322		)	13,667		(3,783		)
Mutual Funds:
Fixed Income	842		(43		)	—		—			842		(43		)
Total temporary impaired securities	$	25,155	$	(3,031	)	$	12,407	$	(2,481	)	$	37,562	$	(5,512	)

Our preneed cemetery trust investment unrealized losses, their associated fair market values, and the duration of unrealized losses as of December 31, 2017 are shown in the following table (in thousands):



	December 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:
Foreign debt	$	151	$	(6	)	$	1,637	$	(187	)	$	1,788	$	(193	)
Corporate debt	3,735		(72		)	846		(201		)	4,581		(273		)
Preferred stock	48		—			8,109		(588		)	8,157		(588		)
Mortgage-backed securities	127		(15		)	27		(9		)	154		(24		)
Common stock	8,249		(1,512		)	1,742		(948		)	9,991		(2,460		)
Mutual Funds:
Fixed Income	496		(11		)	—		—			496		(11		)
Total temporary impaired securities	$	12,806	$	(1,616	)	$	12,361	$	(1,933	)	$	25,167	$	(3,549	)

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, 2017 and 2018 were as follows (in thousands):



	Three Months Ended March 31,
	2017			2018
Investment income	$	589		$	425
Realized gains	820			853
Realized losses	(383		)	(607		)
Expenses and taxes	(545		)	(51		)
Increase in deferred preneed cemetery receipts held in trust	(481		)	(620		)
	$	—		$	—

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, 2017 and 2018 were as follows (in thousands):



	Three Months Ended March 31,
	2017			2018
Purchases	$	(7,609	)	$	(3,376	)
Sales	$	5,982		$	7,559

Components of preneed funeral trust investments

The components of Preneed funeral trust investments on our Consolidated Balance Sheets at December 31, 2017 and March 31, 2018 were as follows (in thousands):



	December 31, 2017			March 31, 2018
Preneed funeral trust investments, at market value	$	93,341		$	94,603
Less: allowance for contract cancellation	(2,659		)	(2,821		)
Preneed funeral trust investments, net	$	90,682		$	91,782

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	$	—
Due in one to five years	3,702
Due in five to ten years	2,746
Thereafter	32,897
Total	$	39,345

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, 2018 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	24,381	$	—	$	—		$	24,381
Fixed income securities:
U.S treasury debt	1	1,490		7		(25		)	1,472
Foreign debt	2	4,833		195		(238		)	4,790
Corporate debt	2	16,034		718		(676		)	16,076
Preferred stock	2	16,211		110		(741		)	15,580
Mortgage-backed securities	2	1,163		293		(29		)	1,427
Common stock	1	24,674		4,033		(3,751		)	24,956
Mutual funds:
Fixed income	2	1,944		28		(106		)	1,866
Other investments	2	3,301		—		—			3,301
Trust securities		$	94,031	$	5,384	$	(5,566	)	$	93,849
Accrued investment income		$	754						$	754
Preneed funeral trust investments									$	94,603
Market value as a percentage of cost									99.8		%

The cost and fair market values associated with preneed funeral trust investments at December 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	$	14,349	$	—	$	—		$	14,349
Fixed income securities:
U.S. treasury debt	1	1,490		10		(15		)	1,485
Foreign debt	2	4,870		298		(189		)	4,979
Corporate debt	2	18,963		1,197		(278		)	19,882
Preferred stock	2	16,335		501		(585		)	16,251
Mortgage-backed securities	2	1,187		263		(27		)	1,423
Common stock	1	26,129		5,253		(2,468		)	28,914
Mutual funds:
Fixed income	2	1,974		52		(48		)	1,978
Other investments	2	3,341		—		—			3,341
Trust securities		$	88,638	$	7,574	$	(3,610	)	$	92,602
Accrued investment income		$	739						$	739
Preneed funeral trust investments									$	93,341
Market value as a percentage of cost									104.5		%

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 March 31, 2018 are shown in the following table (in thousands):



	March 31, 2018
	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	$	1,313	$	(25	)	$	—	$	—		$	1,313	$	(25	)
Foreign debt	542		(21		)	1,560		(217		)	2,102		(238		)
Corporate debt	6,988		(475		)	752		(201		)	7,740		(676		)
Preferred stock	4,645		(42		)	8,294		(699		)	12,939		(741		)
Mortgage-backed securities	167		(1		)	84		(28		)	251		(29		)
Common stock	11,560		(2,409		)	1,682		(1,342		)	13,242		(3,751		)
Mutual Funds:
Fixed income	928		(47		)	571		(59		)	1,499		(106		)
Total temporary impaired securities	$	26,143	$	(3,020	)	$	12,943	$	(2,546	)	$	39,086	$	(5,566	)

Our preneed funeral trust investment unrealized losses, their associated fair market values, and the duration of unrealized losses as of December 31, 2017 are shown in the following table (in thousands):



	December 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	$	1,325	$	(15	)	$	—	$	—		$	1,325	$	(15	)
Foreign debt	159		(6		)	1,608		(183		)	1,767		(189		)
Corporate debt	3,770		(74		)	842		(203		)	4,612		(277		)
Preferred stock	50		—			8,184		(585		)	8,234		(585		)
Mortgage-backed securities	221		(17		)	36		(10		)	257		(27		)
Common stock	8,001		(1,496		)	1,728		(972		)	9,729		(2,468		)
Mutual funds:
Fixed income	549		(12		)	615		(37		)	1,164		(49		)
Total temporary impaired securities	$	14,075	$	(1,620	)	$	13,013	$	(1,990	)	$	27,088	$	(3,610	)

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, 2017 and 2018 were as follows (in thousands):



	Three Months Ended March 31,
	2017			2018
Investment income	$	591		$	412
Realized gains	824			2,896
Realized losses	(379		)	(609		)
Expenses and taxes	(339		)	(144		)
Increase in deferred preneed funeral receipts held in trust	(697		)	(2,555		)
	$	—		$	—

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, 2017 and 2018 were as follows (in thousands):



	Three Months Ended March 31,
	2017			2018
Purchases	$	(7,609	)	$	(3,286	)
Sales	$	6,002		$	7,595