Preneed Trust Investments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2018 were as follows (in thousands):



	December 31, 2017			June 30, 2018
Preneed cemetery trust investments, at market value	$	75,992		$	72,413
Less: allowance for contract cancellation	(2,139		)	(2,135		)
Preneed cemetery trust investments, net	$	73,853		$	70,278

Cost and fair market values associated with preneed cemetery trust investments

The cost and fair market values associated with preneed cemetery trust investments at June 30, 2018 are detailed below (in thousands, except percentages):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	6,997	$	—	$	—		$	6,997
Fixed income securities:
Foreign debt	2	4,528		127		(247		)	4,408
Corporate debt	2	17,905		559		(856		)	17,608
Preferred stock	2	11,482		57		(572		)	10,967
Mortgage-backed securities	2	928		328		(14		)	1,242
Common stock	1	28,100		4,741		(3,365		)	29,476
Mutual funds:
Fixed Income	2	1,201		17		(59		)	1,159
Trust securities		$	71,141	$	5,829	$	(5,113	)	$	71,857
Accrued investment income		$	556						$	556
Preneed cemetery trust investments									$	72,413
Market value as a percentage of cost									101.0		%

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



	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	$	19
Due in one to five years	3,299
Due in five to ten years	4,246
Thereafter	26,661
Total	$	34,225

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 June 30, 2018 are shown in the following table (in thousands):



	June 30, 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	$	1,821	$	(99	)	$	1,015	$	(148	)	$	2,836	$	(247	)
Corporate debt	9,084		(643		)	968		(213		)	10,052		(856		)
Preferred stock	5,395		(162		)	4,687		(410		)	10,082		(572		)
Mortgage-backed securities	—		—			68		(14		)	68		(14		)
Common stock	9,570		(1,491		)	2,885		(1,874		)	12,455		(3,365		)
Mutual Funds:
Fixed Income	825		(59		)	—		—			825		(59		)
Total temporary impaired securities	$	26,695	$	(2,454	)	$	9,623	$	(2,659	)	$	36,318	$	(5,113	)

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 and six months ended June 30, 2017 and 2018 were as follows (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2018			2017			2018
Investment income	$	692		$	474		$	1,281		$	899
Realized gains	1,395			18			2,215			871
Realized losses	(929		)	(750		)	(1,312		)	(1,357		)
Expenses and taxes	(332		)	(221		)	(877		)	(272		)
Net change in deferred preneed cemetery receipts held in trust	(826		)	479			(1,307		)	(141		)
	$	—		$	—		$	—		$	—

Purchases and sales of investments in preneed cemetary trusts

Purchases and sales of investments in the preneed cemetery trusts for the three and six months ended June 30, 2017 and 2018 were as follows (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2018			2017			2018
Purchases	$	(10,831	)	$	(6,882	)	$	(18,440	)	$	(10,258	)
Sales	7,208			6,340			13,189			13,899

Components of preneed funeral trust investments

The components of Preneed funeral trust investments on our Consolidated Balance Sheets at December 31, 2017 and June 30, 2018 were as follows (in thousands):



	December 31, 2017			June 30, 2018
Preneed funeral trust investments, at market value	$	93,341		$	93,987
Less: allowance for contract cancellation	(2,659		)	(2,784		)
Preneed funeral trust investments, net	$	90,682		$	91,203

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	$	21
Due in one to five years	5,057
Due in five to ten years	4,182
Thereafter	26,774
Total	$	36,034

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, 2018 are detailed below (in thousands, except percentages):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	23,912	$	—	$	—		$	23,912
Fixed income securities:
U.S treasury debt	1	1,490		6		(28		)	1,468
Foreign debt	2	4,515		129		(243		)	4,401
Corporate debt	2	18,110		520		(874		)	17,756
Preferred stock	2	11,549		49		(575		)	11,023
Mortgage-backed securities	2	1,061		341		(16		)	1,386
Common stock	1	27,604		4,686		(3,301		)	28,989
Mutual funds:
Fixed income	2	1,525		17		(89		)	1,453
Other investments	2	3,040		—		—			3,040
Trust securities		$	92,806	$	5,748	$	(5,126	)	$	93,428
Accrued investment income		$	559						$	559
Preneed funeral trust investments									$	93,987
Market value as a percentage of cost									100.7		%

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



	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 June 30, 2018 are shown in the following table (in thousands):



	June 30, 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	$	1,310	$	(28	)	$	—	$	—		$	1,310	$	(28	)
Foreign debt	1,853		(101		)	966		(142		)	2,819		(243		)
Corporate debt	9,208		(661		)	960		(213		)	10,168		(874		)
Preferred stock	5,600		(168		)	4,586		(407		)	10,186		(575		)
Mortgage-backed securities	—		—			164		(16		)	164		(16		)
Common stock	9,459		(1,440		)	2,873		(1,861		)	12,332		(3,301		)
Mutual Funds:
Fixed income	859		(61		)	246		(28		)	1,105		(89		)
Insurance:	439		—			—		—			439		—
Total temporary impaired securities	$	28,728	$	(2,459	)	$	9,795	$	(2,667	)	$	38,523	$	(5,126	)

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 and six months ended June 30, 2017 and 2018 were as follows (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2018			2017			2018
Investment income	$	686		$	479		$	1,277		$	891
Realized gains	1,472			11			2,296			2,907
Realized losses	(933		)	(782		)	(1,312		)	(1,391		)
Expenses and taxes	(377		)	(334		)	(716		)	(478		)
Net change in deferred preneed funeral receipts held in trust	(848		)	626			(1,545		)	(1,929		)
	$	—		$	—		$	—		$	—

Purchases and sales of investments in preneed funeral trusts

Purchases and sales of investments in the preneed funeral trusts for the three and six months ended June 30, 2017 and 2018 were as follows (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2018			2017			2018
Purchases	$	(10,974	)	$	(7,153	)	$	(18,582	)	$	(10,439	)
Sales	7,242			6,617			13,243			14,212