Preneed Trust Investments (Tables)

9 Months Ended

Sep. 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 September 30, 2018 were as follows (in thousands):



	December 31, 2017			September 30, 2018
Preneed cemetery trust investments, at market value	$	75,992		$	72,095
Less: allowance for contract cancellation	(2,139		)	(2,142		)
Preneed cemetery trust investments, net	$	73,853		$	69,953

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, 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		%

The cost and fair market values associated with preneed cemetery trust investments at September 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	$	10,388	$	—	$	—		$	10,388
Fixed income securities:
Foreign debt	2	4,353		179		(138		)	4,394
Corporate debt	2	16,756		672		(478		)	16,950
Preferred stock	2	10,667		54		(490		)	10,231
Mortgage-backed securities	2	845		343		(10		)	1,178
Common stock	1	28,388		3,306		(3,376		)	28,318
Trust securities		$	71,397	$	4,554	$	(4,492	)	$	71,459
Accrued investment income		$	636						$	636
Preneed cemetery trust investments									$	72,095
Market value as a percentage of cost									100.1		%

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	2,775
Due in five to ten years	5,683
Thereafter	24,295
Total	$	32,753

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



	September 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	$	1,635	$	(33	)	$	1,015	$	(105	)	$	2,650	$	(138	)
Corporate debt	7,814		(284		)	437		(194		)	8,251		(478		)
Preferred stock	5,362		(134		)	3,996		(356		)	9,358		(490		)
Mortgage-backed securities	—		—			60		(10		)	60		(10		)
Common stock	14,106		(1,598		)	2,335		(1,778		)	16,441		(3,376		)
Total temporary impaired securities	$	28,917	$	(2,049	)	$	7,843	$	(2,443	)	$	36,760	$	(4,492	)

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 nine months ended September 30, 2017 and 2018 were as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2018			2017			2018
Investment income	$	474		$	315		$	1,755		$	1,214
Realized gains	—			1,376			2,215			2,247
Realized losses	—			(1,141		)	(1,312		)	(2,498		)
Expenses and taxes	(336		)	(365		)	(1,213		)	(637		)
Net change in deferred preneed cemetery receipts held in trust	(138		)	(185		)	(1,445		)	(326		)
	$	—		$	—		$	—		$	—

Purchases and sales of investments in preneed cemetary trusts

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2018			2017			2018
Purchases	$	(915	)	$	(8,165	)	$	(19,355	)	$	(18,423	)
Sales	—			8,878			13,189			22,776

Components of preneed funeral trust investments

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



	December 31, 2017			September 30, 2018
Preneed funeral trust investments, at market value	$	93,341		$	92,816
Less: allowance for contract cancellation	(2,659		)	(2,765		)
Preneed funeral trust investments, net	$	90,682		$	90,051

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	4,640
Due in five to ten years	6,276
Thereafter	26,222
Total	$	37,138

Cost and fair market values associated with preneed funeral trust investments

The cost and fair market values associated with preneed funeral trust investments at September 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	$	22,200	$	—	$	—		$	22,200
Fixed income securities:
U.S treasury debt	1	1,455		3		(30		)	1,428
Foreign debt	2	4,613		195		(143		)	4,665
Corporate debt	2	18,130		643		(516		)	18,257
Preferred stock	2	11,876		46		(524		)	11,398
Mortgage-backed securities	2	1,024		380		(14		)	1,390
Common stock	1	29,568		3,506		(3,522		)	29,552
Mutual funds:
Fixed income	2	275		—		(29		)	246
Other investments	2	3,002		—		—			3,002
Trust securities		$	92,143	$	4,773	$	(4,778	)	$	92,138
Accrued investment income		$	678						$	678
Preneed funeral trust investments									$	92,816
Market value as a percentage of cost									100.0		%

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



	September 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	$	497	$	(2	)	$	809	$	(28	)	$	1,306	$	(30	)
Foreign debt	1,766		(36		)	1,024		(107		)	2,790		(143		)
Corporate debt	8,453		(310		)	457		(206		)	8,910		(516		)
Preferred stock	5,943		(149		)	4,150		(375		)	10,093		(524		)
Mortgage-backed securities	—		—			68		(14		)	68		(14		)
Common stock	14,874		(1,658		)	2,481		(1,864		)	17,355		(3,522		)
Mutual Funds:
Fixed income	—		—			246		(29		)	246		(29		)
Insurance:	429		—			—		—			429		—
Total temporary impaired securities	$	31,962	$	(2,155	)	$	9,235	$	(2,623	)	$	41,197	$	(4,778	)

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 nine months ended September 30, 2017 and 2018 were as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2018			2017			2018
Investment income	$	524		$	362		$	1,801		$	1,253
Realized gains	—			1,425			2,296			4,332
Realized losses	(2		)	(1,232		)	(1,314		)	(2,623		)
Expenses and taxes	(390		)	(190		)	(1,106		)	(668		)
Net change in deferred preneed funeral receipts held in trust	(132		)	(365		)	(1,677		)	(2,294		)
	$	—		$	—		$	—		$	—

Purchases and sales of investments in preneed funeral trusts

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2018			2017			2018
Purchases	$	(966	)	$	(9,144	)	$	(19,548	)	$	(19,584	)
Sales	23			9,424			13,266			23,636