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Trust Investments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2020 are as follows (in thousands):



	December 31, 2019			June 30, 2020
Preneed cemetery trust investments, at market value	$	74,572		$	74,914
Less: allowance for contract cancellation	(2,190		)	(2,345		)
Preneed cemetery trust investments	$	72,382		$	72,569

Cost and fair market values associated with preneed cemetery trust investments

The cost and market values associated with preneed cemetery trust investments at June 30, 2020 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	2,844	$	—	$	—		$	2,844
Fixed income securities:
Foreign debt	2	12,628		867		(1,014		)	12,481
Corporate debt	2	15,911		794		(1,500		)	15,205
Preferred stock	2	13,586		334		(1,341		)	12,579
Mortgage-backed securities	2	394		—		(227		)	167
Common stock	1	27,093		5,453		(7,544		)	25,002
Mutual funds:
Fixed Income	2	5,700		494		(277		)	5,917
Trust securities		$	78,156	$	7,942	$	(11,903	)	$	74,195
Accrued investment income		$	719						$	719
Preneed cemetery trust investments									$	74,914
Market value as a percentage of cost									94.9		%

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	$	1
Due in one to five years	8,738
Due in five to ten years	9,703
Thereafter	21,990
Total fixed income securities	$	40,432

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 investments in an unrealized loss position at June 30, 2020, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):



	June 30, 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	$	3,149	$	(334	)	$	311	$	(680	)	$	3,460	$	(1,014	)
Corporate debt	3,140		(989		)	4,227		(511		)	7,367		(1,500		)
Preferred stock	9,882		(1,341		)	—		—			9,882		(1,341		)
Mortgage-backed securities	—		—			167		(227		)	167		(227		)
Total fixed income securities with an unrealized loss	$	16,171	$	(2,664	)	$	4,705	$	(1,418	)	$	20,876	$	(4,082	)



	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 and six months ended June 30, 2019 and 2020 are as follows (in thousands):



	Three months ended June 30,						Six months ended June 30,
	2019			2020			2019			2020
Investment income	$	414		$	653		$	985		$	972
Realized gains	2,363			1,619			3,821			3,535
Realized losses	(1,001		)	(2,200		)	(1,636		)	(3,572		)
Expenses and taxes	(407		)	(438		)	(685		)	(625		)
Net change in deferred preneed cemetery receipts held in trust	(1,369		)	366			(2,485		)	(310		)
	$	—		$	—		$	—		$	—

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



	Three months ended June 30,						Six months ended June 30,
	2019			2020			2019			2020
Purchases	$	(8,186	)	$	(13,597	)	$	(10,258	)	$	(32,454	)
Sales	10,026			12,135			13,899			25,366

Components of preneed funeral trust investments

The components of Preneed funeral trust investments on our Consolidated Balance Sheet at December 31, 2019 and June 30, 2020 are as follows (in thousands):



	December 31, 2019			June 30, 2020
Preneed funeral trust investments, at market value	$	99,246		$	93,110
Less: allowance for expected credit losses and cancellations	(2,911		)	(2,875		)
Preneed funeral trust investments	$	96,335		$	90,235

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	9,528
Due in five to ten years	8,481
Thereafter	21,169
Total fixed income securities	$	39,178

Cost and fair market values associated with preneed funeral trust investments

The cost and market values associated with preneed funeral trust investments at June 30, 2020 are detailed below (in thousands):



	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
Cash and money market accounts	1	$	19,920	$	—	$	—		$	19,920
Fixed income securities:
U.S treasury debt	1	820		13		—			833
Foreign debt	2	12,400		857		(955		)	12,302
Corporate debt	2	14,637		738		(1,432		)	13,943
Preferred stock	2	12,871		316		(1,295		)	11,892
Mortgage-backed securities	2	433		1		(226		)	208
Common stock	1	25,825		5,377		(7,052		)	24,150
Mutual funds:
Fixed income	2	4,942		462		(189		)	5,215
Other investments	2	3,982		—		—			3,982
Trust securities		$	95,830	$	7,764	$	(11,149	)	$	92,445
Accrued investment income		$	665						$	665
Preneed funeral trust investments									$	93,110
Market value as a percentage of cost									96.5		%

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 June 30, 2020, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):



	June 30, 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	$	3,093	$	(332	)	$	288	$	(623	)	$	3,381	$	(955	)
Corporate debt	3,125		(984		)	4,012		(448		)	7,137		(1,432		)
Preferred stock	9,493		(1,295		)	—		—			9,493		(1,295		)
Mortgage-backed securities	4		—			175		(226		)	179		(226		)
Total fixed income securities with an unrealized loss	$	15,715	$	(2,611	)	$	4,475	$	(1,297	)	$	20,190	$	(3,908	)



	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 and six months ended June 30, 2019 and 2020 are as follows (in thousands):



	Three months ended June 30,						Six months ended June 30,
	2019			2020			2019			2020
Investment income	$	409		$	604		$	982		$	862
Realized gains	2,486			1,606			3,806			4,157
Realized losses	(1,007		)	(2,053		)	(424		)	(3,182		)
Expenses and taxes	(513		)	(253		)	(285		)	(350		)
Net change in deferred preneed funeral receipts held in trust	(1,375		)	96			(4,079		)	(1,487		)
	$	—		$	—		$	—		$	—

Purchases and sales of investments in preneed funeral trusts

Purchases and sales of investments in the perpetual care trusts for the three and six months ended June 30, 2019 and 2020 are as follows (in thousands):



	Three months ended June 30,						Six months ended June 30,
	2019			2020			2019			2020
Purchases	$	(5,117	)	$	(11,066	)	$	(14,274	)	$	(25,678	)
Sales	6,278			9,458			7,980			22,152

Purchases and sales of investments in the preneed funeral trusts for the three and six months ended June 30, 2019 and 2020 are as follows (in thousands):



	Three months ended June 30,						Six months ended June 30,
	2019			2020			2019			2020
Purchases	$	(8,436	)	$	(13,153	)	$	(19,195	)	$	(31,691	)
Sales	10,816			11,888			13,601			27,856

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 June 30, 2020 are as follows (in thousands):



	December 31, 2019			June 30, 2020
Cemetery perpetual care trust investments, at market value	$	64,047		$	63,228
Obligations due to (from) trust	(631		)	(916		)
Care trusts’ corpus	$	63,416		$	62,312

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 June 30, 2020, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):



	June 30, 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	$	2,833	$	(272	)	$	276	$	(600	)	$	3,109	$	(872	)
Corporate debt	2,523		(795		)	3,772		(418		)	6,295		(1,213		)
Preferred stock	8,849		(1,234		)	—		—			8,849		(1,234		)
Mortgage-backed securities	—		—			134		(181		)	134		(181		)
Total fixed income securities with an unrealized loss	$	14,205	$	(2,301	)	$	4,182	$	(1,199	)	$	18,387	$	(3,500	)



	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 and six months ended June 30, 2019 and 2020 are as follows (in thousands):



	Three months ended June 30,						Six months ended June 30,
	2019			2020			2019			2020
Realized gains	$	670		$	439		$	1,024		$	1,148
Realized losses	(270		)	(606		)	(441		)	(1,285		)
Net change in Care trusts’ corpus	(400		)	167			(583		)	137
Total	$	—		$	—		$	—		$	—

Perpetual care trust investment security transactions recorded in Other revenue on our Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2020 are as follows (in thousands):



	Three months ended June 30,				Six months ended June 30,
	2019		2020		2019			2020
Investment income	$	1,107	$	1,942	$	2,194		$	3,347
Realized gain (losses), net	10		27		(280		)	(9		)
Total	$	1,117	$	1,969	$	1,914		$	3,338