REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenues

Our operations are reported in two business segments: Funeral Home Operations and Cemetery Operations. Revenues, disaggregated by major source for each of our reportable segments was as follows (in thousands):



Three Months Ended June 30, 2018
	Funeral		Cemetery		Total
Services	$	29,023	$	2,949	$	31,972
Merchandise	17,296		2,372		19,668
Cemetery interment rights	—		7,863		7,863
Revenue from contracts with customers	$	46,319	$	13,184	$	59,503

Preneed funeral commission income	$	354	$	—	$	354
Preneed trust earnings	1,728		1,433		3,161
Preneed trust management fees	131		202		333
Preneed cemetery finance charges	—		496		496
Financial revenues	$	2,213	$	2,131	$	4,344
Total Revenues	$	48,532	$	15,315	$	63,847



Three Months Ended June 30, 2017
	Funeral		Cemetery		Total
Services	$	29,205	$	2,926	$	32,131
Merchandise	17,475		2,166		19,641
Cemetery interment rights	—		7,543		7,543
Revenue from contracts with customers	$	46,680	$	12,635	$	59,315

Preneed funeral commission income	$	333	$	—	$	333
Preneed trust earnings	1,590		1,828		3,418
Preneed trust management fees	136		200		336
Preneed cemetery finance charges	—		450		450
Financial revenues	$	2,059	$	2,478	$	4,537
Total Revenues	$	48,739	$	15,113	$	63,852



Six Months Ended June 30, 2018
	Funeral		Cemetery		Total
Services	$	64,587	$	6,069	$	70,656
Merchandise	38,014		4,330		42,344
Cemetery interment rights	—		15,372		15,372
Revenue from contracts with customers	$	102,601	$	25,771	$	128,372

Preneed funeral commission income	$	614	$	—	$	614
Preneed trust earnings	3,642		2,982		6,624
Preneed trust management fees	269		412		681
Preneed cemetery finance charges	—		943		943
Financial revenues	$	4,525	$	4,337	$	8,862
Total Revenues	$	107,126	$	30,108	$	137,234



Six Months Ended June 30, 2017
	Funeral		Cemetery		Total
Services	$	62,004	$	5,925	$	67,929
Merchandise	36,638		4,010		40,648
Cemetery interment rights	—		14,448		14,448
Revenue from contracts with customers	$	98,642	$	24,383	$	123,025

Preneed funeral commission income	$	636	$	—	$	636
Preneed trust earnings	3,398		3,343		6,741
Preneed trust management fees	274		401		675
Preneed cemetery finance charges	—		932		932
Financial revenues	$	4,308	$	4,676	$	8,984
Total Revenues	$	102,950	$	29,059	$	132,009

Deferred Revenue

Deferred revenue is presented net of amounts due on undelivered preneed contracts shown below as of January 1, 2018 and June 30, 2018 (in thousands):



	January 1, 2018⁽¹⁾			June 30, 2018
Contract liabilities:
Deferred preneed cemetery revenue	$	54,690		$	55,264
Less: Balances due on undelivered cemetery preneed contracts⁽²⁾	(4,594		)	(4,565		)
Deferred preneed cemetery revenue, net	$	50,096		$	50,699

Deferred preneed funeral revenue	$	34,585		$	36,018
Less: Balances due on undelivered funeral preneed contracts⁽³⁾	(7,934		)	(8,278		)
Deferred preneed funeral revenue, net	$	26,651		$	27,740




(1)	January 1, 2018 balances have been adjusted to reflect the cumulative effect of changes for the adoption of ASC 606.
(2)	In accordance with Topic 606, $1.4 million of cemetery accounts receivables have been reclassified to reduce deferred preneed cemetery revenue at both January 1, 2018 and June 30, 2018 and $3.2 million of preneed cemetery receivables have been reclassified to reduce deferred preneed cemetery revenue at both January 1, 2018 and June 30, 2018.
(3)	In accordance with Topic 606, $7.9 million and $8.3 million of preneed funeral receivables have been reclassified to reduce deferred preneed funeral revenue at January 1, 2018 and June 30, 2018, respectively.

Our merchandise and service performance obligations related to our preneed contracts are considered fulfilled at the point in time the merchandise is delivered or the burial, cremation or interment service is performed. The transaction price allocated to preneed merchandise and service performance obligations that were unfulfilled at June 30, 2018 was $4.6 million for preneed cemetery contracts and $8.3 million for preneed funeral contracts. As these performance obligations are to be completed after the date of death, we cannot quantify the recognition of revenue for any given period. However, we estimate an average maturity period of eight years for preneed cemetery contracts and ten years for preneed funeral contracts.