REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue

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



For The Year Ended, December 31, 2018
	Funeral		Cemetery		Total
Services	$	127,262	$	11,342	$	138,604
Merchandise	74,644		8,158		82,802
Cemetery property	—		29,451		29,451
Other revenue	8,819		8,316		17,135
Total	$	210,725	$	57,267	$	267,992



For The Year Ended, December 31, 2017
	Funeral		Cemetery		Total
Services	$	120,827	$	11,765	$	132,592
Merchandise	71,573		8,187		79,760
Cemetery property	—		28,286		28,286
Other revenue	8,486		9,015		17,501
Total	$	200,886	$	57,253	$	258,139



For The Year Ended, December 31, 2016
	Funeral		Cemetery		Total
Services	$	113,131	$	11,230	$	124,361
Merchandise	67,493		7,982		75,475
Cemetery property	—		29,735		29,735
Other revenue	8,777		9,852		18,629
Total	$	189,401	$	58,799	$	248,200

Deferred Revenue

Deferred revenue is presented net of amounts due on undelivered preneed contracts shown below as of January 1, 2018 and December 31, 2018 (in thousands):



	January 1, 2018⁽¹⁾			December 31, 2018
Contract liabilities:
Deferred preneed cemetery revenue	$	54,690		$	50,445
Less: Balances due on undelivered cemetery preneed contracts⁽²⁾	(4,594		)	(4,448		)
Deferred preneed cemetery revenue, net	$	50,096		$	45,997

Deferred preneed funeral revenue	$	34,585		$	36,912
Less: Balances due on undelivered funeral preneed contracts⁽³⁾	(7,934		)	(8,306		)
Deferred preneed funeral revenue, net	$	26,651		$	28,606




(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 December 31, 2018 and $3.2 million and $3.1 million of preneed cemetery receivables have been reclassified to reduce deferred preneed cemetery revenue at January 1, 2018 and December 31, 2018, respectively.
(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 December 31, 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 December 31, 2018 was $4.4 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.