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Trust Investments (Tables)

3 Months Ended

Mar. 31, 2020

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, 2019 and March 31, 2020 are as follows (in thousands):



	December 31, 2019			March 31, 2020
Preneed cemetery trust investments, at market value	$	74,572		$	63,130
Less: allowance for contract cancellation	(2,190		)	(2,354		)
Preneed cemetery trust investments, net	$	72,382		$	60,776

Cost and fair market values associated with preneed cemetery trust investments

The cost and market values associated with preneed cemetery trust investments at March 31, 2020 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	3,516	$	—	$	—		$	3,516
Fixed income securities:
Foreign debt	2	8,294		180		(1,687		)	6,787
Corporate debt	2	15,474		301		(2,979		)	12,796
Preferred stock	2	13,691		35		(2,289		)	11,437
Mortgage-backed securities	2	451		—		(251		)	200
Common stock	1	34,456		1,646		(11,022		)	25,080
Mutual funds:
Fixed Income	2	2,583		161		(400		)	2,344
Trust securities		$	78,465	$	2,323	$	(18,628	)	$	62,160
Accrued investment income		$	970						$	970
Preneed cemetery trust investments									$	63,130
Market value as a percentage of cost									79.2		%

The cost and market values associated with preneed cemetery trust investments at December 31, 2019 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	5,729	$	—	$	—		$	5,729
Fixed income securities:
Foreign debt	2	5,609		312		(243		)	5,678
Corporate debt	2	16,916		1,044		(649		)	17,311
Preferred stock	2	14,206		904		(164		)	14,946
Mortgage-backed securities	2	517		—		(114		)	403
Common stock	1	28,569		2,766		(3,017		)	28,318
Mutual funds:
Fixed income	2	1,463		72		(85		)	1,450
Trust Securities		$	73,009	$	5,098	$	(4,272	)	$	73,835
Accrued investment income		$	737						737
Preneed cemetery trust investments									$	74,572
Market value as a percentage of cost									101.1		%

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	4,178
Due in five to ten years	8,025
Thereafter	19,017
Total fixed income securities	$	31,220

Schedule of fair market value and unrealized loss on cemetery merchandise and service trust investments

The following table summarized our fixed income securities within our preneed cemetery trust investment in an unrealized loss position at March 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):



	March 31, 2020
	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	$	4,655	$	(1,153	)	$	168	$	(534	)	$	4,823	$	(1,687	)
Corporate debt	5,810		(1,412		)	3,253		(1,567		)	9,063		(2,979		)
Preferred stock	10,813		(2,289		)	—		—			10,813		(2,289		)
Mortgage-backed securities	80		(115		)	120		(136		)	200		(251		)
Total fixed income securities with an unrealized loss	$	21,358	$	(4,969	)	$	3,541	$	(2,237	)	$	24,899	$	(7,206	)



	December 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	$	268	$	(42	)	$	758	$	(201	)	$	1,026	$	(243	)
Corporate debt	1,368		(168		)	4,520		(481		)	5,888		(649		)
Preferred stock	4,135		(164		)	—		—			4,135		(164		)
Mortgage-backed securities	—		—			402		(114		)	402		(114		)
Total fixed income securities with an unrealized loss	$	5,771	$	(374	)	$	5,680	$	(796	)	$	11,451	$	(1,170	)

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, 2019 and 2020 are as follows (in thousands):



	Three Months Ended March 31,
	2019			2020
Investment income	$	571		$	319
Realized gains	1,458			1,916
Realized losses	(635		)	(1,372		)
Expenses and taxes	(278		)	(187		)
Net change in deferred preneed cemetery receipts held in trust	(1,116		)	(676		)
	$	—		$	—

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, 2019 and 2020 are as follows (in thousands):



	Three Months Ended March 31,
	2019			2020
Purchases	$	(11,626	)	$	(18,857	)
Sales	2,992			13,231

Components of preneed funeral trust investments

The components of Preneed funeral trust investments on our Consolidated Balance Sheet at December 31, 2019 and March 31, 2020 are as follows (in thousands):



	December 31, 2019			March 31, 2020
Preneed funeral trust investments, at market value	$	99,246		$	84,337
Less: allowance for expected credit losses and cancellations	(2,911		)	(2,960		)
Preneed funeral trust investments	$	96,335		$	81,377

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	5,044
Due in five to ten years	7,093
Thereafter	18,473
Total fixed income securities	$	30,610

Cost and fair market values associated with preneed funeral trust investments

The cost and market values associated with preneed funeral trust investments at March 31, 2020 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	22,033	$	—	$	—		$	22,033
Fixed income securities:
U.S treasury debt	1	820		17		—			837
Foreign debt	2	8,185		180		(1,631		)	6,734
Corporate debt	2	14,374		290		(2,826		)	11,838
Preferred stock	2	13,127		21		(2,198		)	10,950
Mortgage-backed securities	2	503		—		(252		)	251
Common stock	1	32,946		1,648		(10,383		)	24,211
Mutual funds:
Fixed income	2	2,519		162		(302		)	2,379
Other investments	2	4,163		—		—			4,163
Trust securities		$	98,670	$	2,318	$	(17,592	)	$	83,396
Accrued investment income		$	941						$	941
Preneed funeral trust investments									$	84,337
Market value as a percentage of cost									84.5		%

The cost and market values associated with preneed funeral trust investments at December 31, 2019 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	24,160	$	—	$	—		$	24,160
Fixed income securities:
U.S. treasury debt	1	822		—		—			822
Foreign debt	2	5,587		309		(232		)	5,664
Corporate debt	2	16,109		992		(646		)	16,455
Preferred stock	2	14,094		874		(198		)	14,770
Mortgage-backed securities	2	585		—		(117		)	468
Common stock	1	27,652		2,773		(2,869		)	27,556
Mutual funds:
Equity	1	772		617		(4		)	1,385
Fixed income	2	4,364		107		(107		)	4,364
Other investments	2	2,902		—		—			2,902
Trust securities		$	97,047	$	5,672	$	(4,173	)	$	98,546
Accrued investment income		$	700						$	700
Preneed funeral trust investments									$	99,246
Market value as a percentage of cost									101.5		%

Schedule of fair market value and unrealized loss on preneed funeral trust investments

The following table summarized our fixed income securities within our preneed funeral trust investment in an unrealized loss position at March 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):



	March 31, 2020
	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	$	4,605	$	(1,152	)	$	152	$	(479	)	$	4,757	$	(1,631	)
Corporate debt	5,248		(1,357		)	3,127		(1,469		)	8,375		(2,826		)
Preferred stock	10,594		(2,198		)	—		—			10,594		(2,198		)
Mortgage-backed securities	84		(115		)	135		(137		)	219		(252		)
Total fixed income securities with an unrealized loss	20,531		(4,822		)	3,414		(2,085		)	23,945		(6,907		)



	December 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	$	274	$	(43	)	$	723	$	(189	)	$	997	$	(232	)
Corporate debt	1,403		(172		)	4,433		(474		)	5,836		(646		)
Preferred stock	4,412		(198		)	—		—			4,412		(198		)
Mortgage-backed securities	—		—			439		(117		)	439		(117		)
Total fixed income securities with an unrealized loss	6,089		(413		)	5,595		(780		)	11,684		(1,193		)

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, 2019 and 2020 are as follows (in thousands):



	Three Months Ended March 31,
	2019			2020
Investment income	$	573		$	258
Realized gains	1,320			2,551
Realized losses	(583		)	(1,129		)
Expenses and taxes	(228		)	(97		)
Net change in deferred preneed funeral receipts held in trust	(1,082		)	(1,583		)
	$	—		$	—

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, 2019 and 2020 are as follows (in thousands):



	Three Months Ended March 31,
	2019			2020
Purchases	$	(10,759	)	$	(18,538	)
Sales	2,785			15,968

Purchases and sales of investments in the perpetual care trusts for the three months ended March 31, 2019 and 2020 are as follows (in thousands):



	Three Months Ended March 31,
	2019			2020
Purchases	$	(9,157	)	$	(14,612	)
Sales	1,702			12,694

Components of care trusts' corpus

Care trusts’ corpus on our Consolidated Balance Sheet represent the corpus of those trusts plus undistributed income. The components of Care trusts’ corpus as of December 31, 2019 and March 31, 2020 are as follows (in thousands):



	December 31, 2019			March 31, 2020
Cemetery perpetual care trust investments, at market value	$	64,047		$	52,677
Obligations due to (from) trust	(631		)	97
Care trusts’ corpus	$	63,416		$	52,774

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]

The following table summarized our fixed income securities within our perpetual care trust investment in an unrealized loss position at March 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):



	March 31, 2020
	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	$	4,069	$	(976	)	$	151	$	(472	)	$	4,220	$	(1,448	)
Corporate debt	4,077		(1,042		)	2,803		(1,303		)	6,880		(2,345		)
Preferred stock	9,173		(2,138		)	—		—			9,173		(2,138		)
Mortgage-backed securities	61		(88		)	93		(105		)	154		(193		)
Total fixed income securities with an unrealized loss	$	17,380	$	(4,244	)	$	3,047	$	(1,880	)	$	20,427	$	(6,124	)



	December 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	$	168	$	(26	)	$	549	$	(149	)	$	717	$	(175	)
Corporate debt	1,057		(196		)	3,253		(338		)	4,310		(534		)
Preferred stock	2,989		(106		)	—		—			2,989		(106		)
Mortgage-backed securities	—		—			252		(71		)	252		(71		)
Total fixed income securities with an unrealized loss	$	4,214	$	(328	)	$	4,054	$	(558	)	$	8,268	$	(886	)

Preneed Funeral Trust Investment Security Transactions [Table Text Block]

Perpetual care trust investment security transactions recorded in Other, net on our Consolidated Statements of Operations for the three months ended March 31, 2019 and 2020 are as follows (in thousands):



	Three Months Ended March 31,
	2019			2020
Realized gains	$	354		$	709
Realized losses	(171		)	(679		)
Net change in Care trusts’ corpus	(183		)	(30		)
Total	$	—		$	—

Perpetual care trust investment security transactions recorded in Other revenue for the three months ended March 31, 2019 and 2020 are as follows (in thousands):



	Three Months Ended March 31,
	2019			2020
Investment income	$	1,087		$	1,405
Realized losses, net	(290		)	(36		)
Total	$	797		$	1,369