Preneed Trust Investments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2019 are as follows (in thousands):



	December 31, 2018			June 30, 2019
Preneed cemetery trust investments, at market value	$	64,549		$	72,151
Less: allowance for contract cancellation	(2,117		)	(2,181		)
Preneed cemetery trust investments, net	$	62,432		$	69,970

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 June 30, 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	$	9,544	$	—	$	—		$	9,544
Fixed income securities:
Foreign debt	2	5,688		107		(273		)	5,522
Corporate debt	2	13,492		603		(526		)	13,569
Preferred stock	2	13,188		620		(334		)	13,474
Mortgage-backed securities	2	608		11		(81		)	538
Common stock	1	28,895		2,141		(3,366		)	27,670
Mutual funds:
Fixed Income	2	1,288		37		(58		)	1,267
Trust securities		$	72,703	$	3,519	$	(4,638	)	$	71,584
Accrued investment income		$	567						$	567
Preneed cemetery trust investments									$	72,151
Market value as a percentage of cost									98.5		%

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	2,550
Due in five to ten years	9,014
Thereafter	21,539
Total	$	33,103

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



	June 30, 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	$	1,229	$	(37	)	$	1,161	$	(236	)	$	2,390	$	(273	)
Corporate debt	1,925		(89		)	4,571		(437		)	6,496		(526		)
Preferred stock	553		(6		)	6,953		(328		)	7,506		(334		)
Mortgage-backed securities	—		—			350		(81		)	350		(81		)
Common stock	11,890		(2,133		)	2,363		(1,233		)	14,253		(3,366		)
Mutual Funds:
Fixed Income	442		(58		)	—		—			442		(58		)
Total temporary impaired securities	$	16,039	$	(2,323	)	$	15,398	$	(2,315	)	$	31,437	$	(4,638	)

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 and six months ended June 30, 2018 and 2019 are as follows (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2019			2018			2019
Investment income	$	474		$	414		$	899		$	985
Realized gains	18			2,363			871			3,821
Realized losses	(750		)	(1,001		)	(1,357		)	(1,636		)
Expenses and taxes	(221		)	(407		)	(272		)	(685		)
Net change in deferred preneed cemetery receipts held in trust	479			(1,369		)	(141		)	(2,485		)
	$	—		$	—		$	—		$	—

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2019			2018			2019
Purchases	$	(6,882	)	$	(8,186	)	$	(10,258	)	$	(19,812	)
Sales	6,340			10,026			13,899			13,018

Components of preneed funeral trust investments

The components of Preneed funeral trust investments on our Consolidated Balance Sheet at December 31, 2018 and June 30, 2019 are as follows (in thousands):



	December 31, 2018			June 30, 2019
Preneed funeral trust investments, at market value	$	84,803		$	91,459
Less: allowance for contract cancellation	(2,729		)	(2,763		)
Preneed funeral trust investments, net	$	82,074		$	88,696

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	$	121
Due in one to five years	3,457
Due in five to ten years	9,164
Thereafter	21,756
Total	$	34,498

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, 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	$	25,145	$	—	$	—		$	25,145
Fixed income securities:
U.S treasury debt	1	944		1		(3		)	942
Foreign debt	2	5,683		106		(264		)	5,525
Corporate debt	2	13,482		595		(525		)	13,552
Preferred stock	2	13,543		646		(333		)	13,856
Mortgage-backed securities	2	698		10		(85		)	623
Common stock	1	28,227		1,921		(3,258		)	26,890
Mutual funds:
Fixed income	2	1,419		38		(50		)	1,407
Other investments	2	2,959		—		—			2,959
Trust securities		$	92,100	$	3,317	$	(4,518	)	$	90,899
Accrued investment income		$	560						$	560
Preneed funeral trust investments									$	91,459
Market value as a percentage of cost									98.7		%

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 June 30, 2019 are shown in the following table (in thousands):



	June 30, 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	$	—	$	—		$	821	$	(3	)	$	821	$	(3	)
Foreign debt	1,271		(38		)	1,116		(226		)	2,387		(264		)
Corporate debt	1,990		(93		)	4,518		(432		)	6,508		(525		)
Preferred stock	347		(4		)	6,924		(329		)	7,271		(333		)
Mortgage-backed securities	9		—			396		(85		)	405		(85		)
Common stock	11,905		(2,131		)	2,267		(1,127		)	14,172		(3,258		)
Mutual Funds:
Fixed income	293		(36		)	261		(14		)	554		(50		)
Other Investments	430		—			—		—			430		—
Total temporary impaired securities	$	16,245	$	(2,302	)	$	16,303	$	(2,216	)	$	32,548	$	(4,518	)

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 and six months ended June 30, 2018 and 2019 are as follows (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2019			2018			2019
Investment income	$	479		$	409		$	891		$	982
Realized gains	11			2,486			2,907			3,806
Realized losses	(782		)	(1,007		)	(1,391		)	(424		)
Expenses and taxes	(334		)	(513		)	(478		)	(285		)
Net change in deferred preneed funeral receipts held in trust	626			(1,375		)	(1,929		)	(4,079		)
	$	—		$	—		$	—		$	—

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2019			2018			2019
Purchases	$	(7,153	)	$	(8,436	)	$	(10,439	)	$	(19,195	)
Sales	6,617			10,816			14,212			13,601