Receivables

12 Months Ended

Dec. 31, 2020

Preneed Cemetery Receivables [Abstract]

Accounts Receivable

Accounts receivable is comprised of the following (in thousands):


	December 31, 2020
	Funeral		Cemetery		Corporate		Total
Trade and financed receivables	$	11,448	$	12,230	$	—	$	23,678
Other receivables	367		2,144		201		2,712
Allowance for credit losses	(327)		(960)		—		(1,287)
Accounts receivable, net	$	11,488	$	13,414	$	201	$	25,103


	December 31, 2019
	Funeral		Cemetery		Corporate		Total
Trade and financed receivables	$	10,046	$	10,508	$	—	$	20,554
Other receivables	935		157		681		1,773
Allowance for bad debt	(223)		(626)		—		(849)
Accounts receivable, net	$	10,758	$	10,039	$	681	$	21,478

Other receivables include supplier rebates, commissions due from third party insurance companies and perpetual care income receivables. We do not provide an allowance for credit losses for these receivables as we have historically not had any collectability issues nor do we expect any in the foreseeable future.

The following table summarizes the activity in our allowance for credit losses by portfolio segment for the year ended December 31, 2020 (in thousands):


	January 1, 2020		Provision for Credit Losses		Allowance Recorded at Acquisition		Write Offs		Recoveries		December 31, 2020
Trade and financed receivables:
Funeral	$	(223)	$	(1,142)	$	—	$	2,115	$	(1,077)	$	(327)
Cemetery	(626)		(475)		(193)		334		—		(960)
Total allowance for credit losses on Trade and financed receivables	$	(849)	$	(1,617)	$	(193)	$	2,449	$	(1,077)	$	(1,287)

As noted in Note 3, we acquired preneed cemetery receivables in connection with the funeral home and cemetery combination business in Lafayette, California acquired on January 3, 2020. We recorded an allowance for credit losses of $0.4 million on these acquired receivables ($0.2 million current portion shown above in Accounts receivable, net and $0.2 million non-current portion shown below in Preneed cemetery receivables, net as noted in the respective allowance rollforward tables under Allowance Recorded at Acquisition). We accounted for the allowance for credit losses on these purchased financed assets using specific identification as these assets have a unique set of risk characteristics. For these specifically identified receivables, we determined the allowance to be 60% of the face value.

Bad debt expense for accounts receivable totaled $1.1 million for both the years ended December 31, 2018 and 2019.

Preneed Cemetery Receivables

Our preneed cemetery receivables are comprised of the following (in thousands):


	December 31, 2019		December 31, 2020
Cemetery interment rights	$	31,366	$	36,696
Cemetery merchandise and services	9,950		10,526
Cemetery financed receivables	$	41,316	$	47,222

The components of our preneed cemetery receivables are as follows (in thousands):


	December 31, 2019		December 31, 2020
Preneed cemetery receivables	$	41,316	$	47,222
Less: unearned finance charges	(4,522)		(4,348)
Preneed cemetery receivables, at amortized cost	$	36,794	$	42,874
Less: allowance for bad debt and credit losses	(1,916)		(2,604)
Less: balances due on undelivered cemetery preneed contracts	(4,823)		(7,919)
Less: amounts in accounts receivable	(9,882)		(11,270)
Preneed cemetery receivables, net	$	20,173	$	21,081

The following table summarizes the activity in our allowance for credit losses for Preneed cemetery receivables, net for the year ended December 31, 2020 (in thousands):


	January 1, 2020		Provision for Credit Losses		Allowance Recorded at Acquisition		Write Offs		December 31, 2020
Total allowance for credit losses on Preneed cemetery receivables, net	$	(1,290)	$	(701)	$	(171)	$	518	$	(1,644)

Bad debt expense for our preneed receivables totaled $0.7 million and $0.5 million for the years ended December 31, 2018 and 2019, respectively.

The amortized cost basis of our preneed cemetery receivables by year of origination as of December 31, 2020 is as follows (in thousands):


	2020		2019		2018		2017		2016		Prior		Total
Total preneed cemetery receivables, at amortized cost	$	20,056	$	10,593	$	5,820	$	3,387	$	1,431	$	1,587	$	42,874

The aging of past due preneed cemetery receivables as of December 31, 2020 is as follows (in thousands):


	31-60 Past Due		61-90 Past Due		91-120 Past Due		>120 Past Due		Total Past Due		Current		Total Financing Receivables
Recognized revenue	$	759	$	348	$	174	$	1,763	$	3,044	$	32,219	$	35,263
Deferred revenue	220		130		42		557		949		11,010		11,959
Total contracts	$	979	$	478	$	216	$	2,320	$	3,993	$	43,229	$	47,222

The aging of past due preneed cemetery receivables as of December 31, 2019 is as follows (in thousands):


	31-60 Past Due		61-90 Past Due		91-120 Past Due		>120 Past Due		Total Past Due		Current		Total Financing Receivables
Recognized revenue	$	745	$	392	$	148	$	1,209	$	2,494	$	28,382	$	30,876
Deferred revenue	219		121		147		302		789		9,651		10,440
Total contracts	$	964	$	513	$	295	$	1,511	$	3,283	$	38,033	$	41,316