Preneed Trust Investments (Tables)

3 Months Ended

Mar. 31, 2019

Preneed Trust Investments [Abstract]

Components of preneed cemetery trust investments

The components of Preneed cemetery trust investments on our Consolidated Balance Sheet at December 31, 2018 and March 31, 2019 are as follows (in thousands):



	December 31, 2018			March 31, 2019
Preneed cemetery trust investments, at market value	$	64,549		$	69,878
Less: allowance for contract cancellation	(2,117		)	(2,136		)
Preneed cemetery trust investments, net	$	62,432		$	67,742

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, 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	$	16,194	$	—	$	—		$	16,194
Fixed income securities:
Foreign debt	2	3,802		43		(511		)	3,334
Corporate debt	2	13,987		362		(1,026		)	13,323
Preferred stock	2	11,068		54		(1,146		)	9,976
Mortgage-backed securities	2	666		161		(14		)	813
Common stock	1	24,867		903		(5,436		)	20,334
Trust securities		$	70,584	$	1,523	$	(8,133	)	$	63,974
Accrued investment income		$	575						$	575
Preneed cemetery trust investments									$	64,549
Market value as a percentage of cost									90.6		%

The cost and fair market values associated with preneed cemetery trust investments at March 31, 2019 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	$	7,496	$	—	$	—		$	7,496
Fixed income securities:
Foreign debt	2	5,547		169		(249		)	5,467
Corporate debt	2	14,199		444		(455		)	14,188
Preferred stock	2	12,320		259		(774		)	11,805
Mortgage-backed securities	2	643		90		(21		)	712
Common stock	1	29,834		2,298		(3,792		)	28,340
Mutual funds:
Fixed Income	2	1,169		9		(2		)	1,176
Trust securities		$	71,208	$	3,269	$	(5,293	)	$	69,184
Accrued investment income		$	694						$	694
Preneed cemetery trust investments									$	69,878
Market value as a percentage of cost									97.2		%

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	2,985
Due in five to ten years	8,987
Thereafter	20,200
Total	$	32,172

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, 2019 are shown in the following table (in thousands):



	March 31, 2019
	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	$	2,002	$	(41	)	$	1,185	$	(208	)	$	3,187	$	(249	)
Corporate debt	1,062		(60		)	5,209		(395		)	6,271		(455		)
Preferred stock	4,641		(236		)	3,974		(538		)	8,615		(774		)
Mortgage-backed securities	—		—			119		(21		)	119		(21		)
Common stock	13,544		(2,310		)	1,457		(1,482		)	15,001		(3,792		)
Mutual Funds:
Fixed Income	455		(2		)	—		—			455		(2		)
Total temporary impaired securities	$	21,704	$	(2,649	)	$	11,944	$	(2,644	)	$	33,648	$	(5,293	)

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



	December 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	$	2,140	$	(245	)	$	895	$	(266	)	$	3,035	$	(511	)
Corporate debt	9,918		(813		)	443		(213		)	10,361		(1,026		)
Preferred stock	5,253		(399		)	3,767		(747		)	9,020		(1,146		)
Mortgage-backed securities	—		—			51		(14		)	51		(14		)
Common stock	14,191		(4,012		)	1,190		(1,424		)	15,381		(5,436		)
Total temporary impaired securities	$	31,502	$	(5,469	)	$	6,346	$	(2,664	)	$	37,848	$	(8,133	)

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, 2018 and 2019 are as follows (in thousands):



	Three Months Ended March 31,
	2018			2019
Investment income	$	425		$	571
Realized gains	853			1,458
Realized losses	(607		)	(635		)
Expenses and taxes	(51		)	(278		)
Net change in deferred preneed cemetery receipts held in trust	(620		)	(1,116		)
	$	—		$	—

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, 2018 and 2019 are as follows (in thousands):



	Three Months Ended March 31,
	2018			2019
Purchases	$	(3,376	)	$	(11,626	)
Sales	7,559			2,992

Components of preneed funeral trust investments

The components of Preneed funeral trust investments on our Consolidated Balance Sheet at December 31, 2018 and March 31, 2019 are as follows (in thousands):



	December 31, 2018			March 31, 2019
Preneed funeral trust investments, at market value	$	84,803		$	89,743
Less: allowance for contract cancellation	(2,729		)	(2,730		)
Preneed funeral trust investments, net	$	82,074		$	87,013

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	$	496
Due in one to five years	3,889
Due in five to ten years	8,925
Thereafter	21,094
Total	$	34,404

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, 2019 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	$	23,147	$	—	$	—		$	23,147
Fixed income securities:
U.S treasury debt	1	1,318		2		(12		)	1,308
Foreign debt	2	5,531		171		(241		)	5,461
Corporate debt	2	14,589		515		(454		)	14,650
Preferred stock	2	12,675		273		(772		)	12,176
Mortgage-backed securities	2	740		93		(24		)	809
Common stock	1	28,750		2,173		(3,680		)	27,243
Mutual funds:
Fixed income	2	1,294		9		(22		)	1,281
Other investments	2	2,976		—		—			2,976
Trust securities		$	91,020	$	3,236	$	(5,205	)	$	89,051
Accrued investment income		$	692						$	692
Preneed funeral trust investments									$	89,743
Market value as a percentage of cost									97.8		%

The cost and fair market values associated with preneed funeral trust investments at December 31, 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	$	31,375	$	—	$	—		$	31,375
Fixed income securities:
U.S. treasury debt	1	1,319		3		(19		)	1,303
Foreign debt	2	3,748		44		(503		)	3,289
Corporate debt	2	14,195		294		(1,025		)	13,464
Preferred stock	2	11,500		54		(1,194		)	10,360
Mortgage-backed securities	2	772		168		(18		)	922
Common stock	1	24,803		887		(5,389		)	20,301
Mutual funds:
Fixed income	2	275		—		(29		)	246
Other investments	2	3,006		—		—			3,006
Trust securities		$	90,993	$	1,450	$	(8,177	)	$	84,266
Accrued investment income		$	537						$	537
Preneed funeral trust investments									$	84,803
Market value as a percentage of cost									92.6		%

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, 2019 are shown in the following table (in thousands):



	March 31, 2019
	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	$	—	$	—		$	812	$	(12	)	$	812	$	(12	)
Foreign debt	2,025		(42		)	1,138		(199		)	3,163		(241		)
Corporate debt	1,097		(63		)	5,117		(391		)	6,214		(454		)
Preferred stock	4,796		(244		)	3,855		(528		)	8,651		(772		)
Mortgage-backed securities	6		—			188		(24		)	194		(24		)
Common stock	13,083		(2,282		)	1,409		(1,398		)	14,492		(3,680		)
Mutual Funds:
Fixed income	284		(1		)	254		(21		)	538		(22		)
Total temporary impaired securities	$	21,291	$	(2,632	)	$	12,773	$	(2,573	)	$	34,064	$	(5,205	)

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



	December 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	$	—	$	—		$	1,181	$	(19	)	$	1,181	$	(19	)
Foreign debt	2,180		(251		)	850		(252		)	3,030		(503		)
Corporate debt	9,990		(814		)	434		(211		)	10,424		(1,025		)
Preferred stock	5,967		(460		)	3,673		(734		)	9,640		(1,194		)
Mortgage-backed securities	11		—			120		(18		)	131		(18		)
Common stock	14,327		(4,035		)	1,155		(1,354		)	15,482		(5,389		)
Mutual funds:
Fixed income	—		—			246		(29		)	246		(29		)
Total temporary impaired securities	$	32,475	$	(5,560	)	$	7,659	$	(2,617	)	$	40,134	$	(8,177	)

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, 2018 and 2019 are as follows (in thousands):



	Three Months Ended March 31,
	2018			2019
Investment income	$	412		$	573
Realized gains	2,896			1,320
Realized losses	(609		)	(583		)
Expenses and taxes	(144		)	(228		)
Net change in deferred preneed funeral receipts held in trust	(2,555		)	(1,082		)
	$	—		$	—

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, 2018 and 2019 are as follows (in thousands):



	Three Months Ended March 31,
	2018			2019
Purchases	$	(3,286	)	$	(10,759	)
Sales	7,595			2,785