Preneed Trust Investments (Tables)

9 Months Ended

Sep. 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 September 30, 2019 are as follows (in thousands):



	December 31, 2018			September 30, 2019
Preneed cemetery trust investments, at market value	$	64,549		$	70,503
Less: allowance for contract cancellation	(2,117		)	(2,170		)
Preneed cemetery trust investments, net	$	62,432		$	68,333

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 September 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	$	7,657	$	—	$	—		$	7,657
Fixed income securities:
Foreign debt	2	6,380		125		(471		)	6,034
Corporate debt	2	17,404		812		(660		)	17,556
Preferred stock	2	13,193		1,000		(137		)	14,056
Mortgage-backed securities	2	567		—		(210		)	357
Common stock	1	25,679		1,169		(4,231		)	22,617
Mutual funds:
Fixed Income	2	1,462		36		(69		)	1,429
Trust securities		$	72,342	$	3,142	$	(5,778	)	$	69,706
Accrued investment income		$	797						$	797
Preneed cemetery trust investments									$	70,503
Market value as a percentage of cost									96.4		%

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	2,582
Due in five to ten years	12,924
Thereafter	22,497
Total	$	38,003

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



	September 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	$	1,824	$	(130	)	$	1,057	$	(341	)	$	2,881	$	(471	)
Corporate debt	3,465		(434		)	4,777		(226		)	8,242		(660		)
Preferred stock	2,282		(26		)	2,477		(111		)	4,759		(137		)
Mortgage-backed securities	—		—			357		(210		)	357		(210		)
Common stock	12,130		(2,791		)	2,970		(1,440		)	15,100		(4,231		)
Mutual Funds:
Fixed Income	662		(69		)	—		—			662		(69		)
Total temporary impaired securities	$	20,363	$	(3,450	)	$	11,638	$	(2,328	)	$	32,001	$	(5,778	)

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 nine months ended September 30, 2018 and 2019 are as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2019			2018			2019
Investment income	$	315		$	323		$	1,214		$	1,308
Realized gains	1,376			1,180			2,247			5,001
Realized losses	(1,141		)	(1,527		)	(2,498		)	(3,163		)
Expenses and taxes	(365		)	(396		)	(637		)	(1,081		)
Net change in deferred preneed cemetery receipts held in trust	(185		)	420			(326		)	(2,065		)
	$	—		$	—		$	—		$	—

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2019			2018			2019
Purchases	$	(8,165	)	$	(13,488	)	$	(18,423	)	$	(33,299	)
Sales	8,878			11,672			22,776			24,690

Components of preneed funeral trust investments

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



	December 31, 2018			September 30, 2019
Preneed funeral trust investments, at market value	$	84,803		$	89,802
Less: allowance for contract cancellation	(2,729		)	(2,743		)
Preneed funeral trust investments, net	$	82,074		$	87,059

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	3,480
Due in five to ten years	12,483
Thereafter	22,104
Total	$	38,067

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, 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	$	24,535	$	—	$	—		$	24,535
Fixed income securities:
U.S treasury debt	1	822		—		—			822
Foreign debt	2	6,371		122		(455		)	6,038
Corporate debt	2	16,774		799		(649		)	16,924
Preferred stock	2	13,002		993		(140		)	13,855
Mortgage-backed securities	2	645		—		(217		)	428
Common stock	1	24,960		1,125		(3,979		)	22,106
Mutual funds:
Fixed income	2	1,415		37		(54		)	1,398
Other investments	2	2,913		—		—			2,913
Trust securities		$	91,437	$	3,076	$	(5,494	)	$	89,019
Accrued investment income		$	783						$	783
Preneed funeral trust investments									$	89,802
Market value as a percentage of cost									97.4		%

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



	September 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	$	822	$	—		$	—	$	—		$	822	$	—
Foreign debt	1,878		(133		)	1,015		(322		)	2,893		(455		)
Corporate debt	2,908		(424		)	4,702		(225		)	7,610		(649		)
Preferred stock	2,077		(26		)	2,550		(114		)	4,627		(140		)
Mortgage-backed securities	4		—			395		(217		)	399		(217		)
Common stock	11,736		(2,687		)	2,848		(1,292		)	14,584		(3,979		)
Mutual Funds:
Fixed income	345		(43		)	264		(11		)	609		(54		)
Total temporary impaired securities	$	19,770	$	(3,313	)	$	11,774	$	(2,181	)	$	31,544	$	(5,494	)

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 nine months ended September 30, 2018 and 2019 are as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2019			2018			2019
Investment income	$	362		$	328		$	1,253		$	1,310
Realized gains	1,425			1,114			4,332			4,920
Realized losses	(1,232		)	(1,540		)	(2,623		)	(1,964		)
Expenses and taxes	(190		)	(226		)	(668		)	(511		)
Net change in deferred preneed funeral receipts held in trust	(365		)	324			(2,294		)	(3,755		)
	$	—		$	—		$	—		$	—

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2019			2018			2019
Purchases	$	(9,144	)	$	(12,129	)	$	(19,584	)	$	(31,325	)
Sales	9,424			11,393			23,636			24,994