XML 20 R11.htm IDEA: XBRL DOCUMENT v3.22.1

Trust Investments

3 Months Ended

Mar. 31, 2022

Preneed Trust Investments [Abstract]

Trust Investments

TRUST INVESTMENTS

Preneed trust investments represent trust fund assets that we are generally permitted to withdraw as the services and merchandise are provided to customers. Preneed funeral and cemetery contracts are secured by payments from customers, less amounts not required by law to be deposited into trust. These earnings are recognized in Other revenue on our Consolidated Statements of Operations, when a service is performed or merchandise is delivered. Trust management fees charged by CSV RIA are included as revenue in the period in which they are earned. Our investments are diversified across multiple industry segments using a balanced allocation strategy to minimize long-term risk. We do not intend to sell and it is likely that we will not be required to sell the securities prior to their anticipated recovery.

Cemetery perpetual care trust investments represent a portion of the proceeds from the sale of cemetery property interment rights that we are required by various state laws to deposit into perpetual care trust funds. The income earned from these perpetual care trusts offsets maintenance expenses for cemetery property and memorials. This trust fund income is recognized in Other revenue.

Where quoted prices are available in an active market, investments held by the trusts are classified as Level 1 investments pursuant to the three-level valuation hierarchy. Our Level 1 investments include cash, U.S. treasury debt, common stock and equity mutual funds. Where quoted market prices are not available for the specific security, then fair values are estimated by using quoted prices of similar securities in active markets or inputs other than quoted prices that can corroborate observable market data. These investments are fixed income securities, including U.S. agency obligations, foreign debt, corporate debt, preferred stocks, certificates of deposit and fixed income mutual funds and other investments, all of which are classified within Level 2 of the valuation hierarchy. We review and update our fair value hierarchy classifications quarterly. See Note 8 to the Consolidated Financial Statements included herein for further information of the fair value measurement.

Changes in the fair value of our trust fund assets (Preneed funeral, cemetery and perpetual care trust investments) are offset by changes in the fair value of our trust fund liabilities (Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus) and reflected in Other, net. There is no impact on earnings until such time the services are performed or the merchandise is delivered, causing the contract to be withdrawn from the trust in accordance with state regulations and the gain or loss is allocated to the contract.

We rely on our trust investments to provide funding for the various contractual obligations that arise upon maturity of the underlying preneed contracts. Because of the long-term relationship between the establishment of trust investments and the required performance of the underlying contractual obligations, the impact of current market conditions that may exist at any given time is not necessarily indicative of our ability to generate profit on our future performance obligations.

Preneed Cemetery Trust Investments

The components of Preneed cemetery trust investments on our Consolidated Balance Sheet are as follows (in thousands):

			December 31, 2021						March 31, 2022
Preneed cemetery trust investments, at market value			$	103,808					$	105,459
Less: allowance for contract cancellation			(2,905)						(2,926)
Preneed cemetery trust investments			$	100,903					$	102,533

The cost and market values associated with preneed cemetery trust investments at March 31, 2022 are detailed below (in thousands):

			Fair Value Hierarchy Level						Cost						Unrealized Gains						Unrealized Losses						Fair Market Value
Cash and money market accounts			1						$	521					$	—					$	—					$	521
Fixed income securities:
U.S. agency obligations			2						803						—						(24)						779
Foreign debt			2						9,729						1,534						(300)						10,963
Corporate debt			2						12,442						623						(843)						12,222
Preferred stock			2						12,509						604						(327)						12,786
Certificates of deposit			2						79						—						(3)						76
Common stock			1						49,894						9,592						(2,898)						56,588
Mutual funds:
Equity			1						28						6						—						34
Fixed income			2						11,497						151						(1,238)						10,410
Trust securities									$	97,502					$	12,510					$	(5,633)					$	104,379
Accrued investment income									$	1,080																	$	1,080
Preneed cemetery trust investments																											$	105,459
Market value as a percentage of cost																											107.1%

The estimated maturities of the fixed income securities (excluding mutual funds) included above are as follows (in thousands):

Due in one year or less			$	1,153
Due in one to five years			7,455
Due in five to ten years			6,242
Thereafter			21,976
Total fixed income securities			$	36,826

The cost and market values associated with preneed cemetery trust investments at December 31, 2021 are detailed below (in thousands):

			Fair Value Hierarchy Level						Cost						Unrealized Gains						Unrealized Losses						Fair Market Value
Cash and money market accounts			1						$	3,088					$	—					$	—					$	3,088
Fixed income securities:
Foreign debt			2						15,846						2,025						(953)						16,918
Corporate debt			2						12,965						1,374						(49)						14,290
Preferred stock			2						12,455						1,111						(344)						13,222
Common stock			1						40,992						6,906						(4,079)						43,819
Mutual funds:
Equity			1						28						8						—						36
Fixed income			2						11,443						615						(567)						11,491
Trust Securities									$	96,817					$	12,039					$	(5,992)					$	102,864
Accrued investment income									$	944																	$	944
Preneed cemetery trust investments																											$	103,808
Market value as a percentage of cost																											106.2%

The following table summarized our fixed income securities (excluding mutual funds) within our preneed cemetery trust investments in an unrealized loss position at March 31, 2022, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

			March 31, 2022
			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. agency obligations			$	779					$	(24)					$	—					$	—					$	779					$	(24)
Foreign debt			1,036						(12)						783						(288)						1,819						(300)
Corporate debt			7,257						(843)						—						—						7,257						(843)
Preferred stock			4,448						(113)						3,121						(214)						7,569						(327)
Certificates of deposit			76						(3)						—						—						76						(3)
Total fixed income securities with an unrealized loss			$	13,596					$	(995)					$	3,904					$	(502)					$	17,500					$	(1,497)

The following table summarized our fixed income securities (excluding mutual funds) within our preneed cemetery trust investments in an unrealized loss position at December 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

			December 31, 2021
			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			$	4,228					$	(517)					$	629					$	(436)					$	4,857					$	(953)
Corporate debt			1,037						(49)						—						—						1,037						(49)
Preferred stock			1,301						(63)						2,913						(281)						4,214						(344)
Total fixed income securities with an unrealized loss			$	6,566					$	(629)					$	3,542					$	(717)					$	10,108					$	(1,346)

Preneed cemetery trust investment security transactions recorded in Other, net on our Consolidated Statements of Operations are as follows (in thousands):

			Three months ended March 31,
			2021						2022
Investment income			$	467					$	491
Realized gains			4,092						2,023
Realized losses			(2,518)						(63)
Unrealized gains, net			9,708						6,877
Expenses and taxes			(327)						(364)
Net change in deferred preneed cemetery receipts held in trust			(11,422)						(8,964)
			$	—					$	—

Purchases and sales of investments in the preneed cemetery trusts are as follows (in thousands):

			Three months ended March 31,
			2021						2022
Purchases			$	(8,411)					$	(1,315)
Sales			8,049						200

Preneed Funeral Trust Investments

Preneed funeral trust investments represent trust fund assets that we are permitted to withdraw as services and merchandise are provided to customers. Preneed funeral contracts are secured by payments from customers, less retained amounts not required to be deposited into trust.

The components of Preneed funeral trust investments on our Consolidated Balance Sheet are as follows (in thousands):

			December 31, 2021						March 31, 2022
Preneed funeral trust investments, at market value			$	116,973					$	116,605
Less: allowance for contract cancellation			(3,315)						(3,273)
Preneed funeral trust investments			$	113,658					$	113,332

The cost and market values associated with preneed funeral trust investments at March 31, 2022 are detailed below (in thousands):

			Fair Value Hierarchy Level						Cost						Unrealized Gains						Unrealized Losses						Fair Market Value
Cash and money market accounts			1						$	21,654					$	—					$	—					$	21,654
Fixed income securities:
U.S treasury debt			1						550						—						(16)						534
Foreign debt			2						8,733						1,396						(255)						9,874
Corporate debt			2						10,544						548						(732)						10,360
Preferred stock			2						10,850						528						(300)						11,078
Common stock			1						43,740						8,691						(2,432)						49,999
Mutual funds:
Equity			1						26						5						—						31
Fixed income			2						9,308						114						(1,020)						8,402
Other investments			2						3,716						—						—						3,716
Trust securities									$	109,121					$	11,282					$	(4,755)					$	115,648
Accrued investment income									$	957																	$	957
Preneed funeral trust investments																											$	116,605
Market value as a percentage of cost																											106.0%

The estimated maturities of the fixed income securities (excluding mutual funds) included above are as follows (in thousands):

Due in one year or less			$	1,052
Due in one to five years			6,099
Due in five to ten years			5,381
Thereafter			19,314
Total fixed income securities			$	31,846

The cost and market values associated with preneed funeral trust investments at December 31, 2021 are detailed below (in thousands):

			Fair Value Hierarchy Level						Cost						Unrealized Gains						Unrealized Losses						Fair Market Value
Cash and money market accounts			1						$	23,438					$	—					$	—					$	23,438
Fixed income securities:
Foreign debt			2						14,936						1,874						(887)						15,923
Corporate debt			2						11,231						1,223						(46)						12,408
Preferred stock			2						11,001						986						(319)						11,668
Common stock			1						36,694						6,417						(3,574)						39,537
Mutual funds:
Equity			1						26						7						—						33
Fixed income			2						9,396						454						(470)						9,380
Other investments			2						3,754						—						—						3,754
Trust securities									$	110,476					$	10,961					$	(5,296)					$	116,141
Accrued investment income									$	832																	$	832
Preneed funeral trust investments																											$	116,973
Market value as a percentage of cost																											105.1%

The following table summarized our fixed income securities (excluding mutual funds) within our preneed funeral trust investment in an unrealized loss position at March 31, 2022, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

			March 31, 2022
			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			$	534					$	(16)					$	—					$	—					$	534					$	(16)
Foreign debt			908						(10)						668						(245)						1,576						(255)
Corporate debt			5,920						(732)						—						—						5,920						(732)
Preferred stock			4,062						(103)						2,849						(197)						6,911						(300)
Total fixed income securities with an unrealized loss			$	11,424					$	(861)					$	3,517					$	(442)					$	14,941					$	(1,303)

The following table summarized our fixed income securities (excluding mutual funds) within our preneed funeral trust investment in an unrealized loss position at December 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

			December 31, 2021
			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			$	4,251					$	(509)					$	548					$	(378)					$	4,799					$	(887)
Corporate debt			965						(46)						—						—						965						(46)
Preferred stock			1,211						(58)						2,710						(261)						3,921						(319)
Total fixed income securities with an unrealized loss			$	6,427					$	(613)					$	3,258					$	(639)					$	9,685					$	(1,252)

Preneed funeral trust investment security transactions recorded in Other, net on the Consolidated Statements of Operations are as follows (in thousands):

			Three months ended March 31,
			2021						2022
Investment income			$	369					$	366
Realized gains			3,871						1,743
Realized losses			(2,368)						(58)
Unrealized gains, net			9,319						6,527
Expenses and taxes			(196)						(215)
Net change in deferred preneed funeral receipts held in trust			(10,995)						(8,363)
			$	—					$	—

Purchases and sales of investments in the preneed funeral trusts are as follows (in thousands):

			Three months ended March 31,
			2021						2022
Purchases			$	(7,628)					$	(590)
Sales			7,524						500

Cemetery Perpetual Care Trust Investments

Care trusts’ corpus on our Consolidated Balance Sheet represent the corpus of those trusts plus undistributed income. The components of Care trusts’ corpus are as follows (in thousands):

			December 31, 2021						March 31, 2022
Cemetery perpetual care trust investments, at market value			$	72,400					$	73,525
Obligations due from trust			(1,244)						(678)
Care trusts’ corpus			$	71,156					$	72,847

The following table reflects the cost and market values associated with the trust investments held in cemetery perpetual care trust funds at March 31, 2022 (in thousands):

			Fair Value Hierarchy Level						Cost						Unrealized Gains						Unrealized Losses						Fair Market Value
Cash and money market accounts			1						$	265					$	—					$	—					$	265
Fixed income securities:
Foreign debt			2						7,112						1,053						(225)						7,940
Corporate debt			2						8,838						531						(610)						8,759
Preferred stock			2						9,821						419						(224)						10,016
Common stock			1						33,736						6,690						(2,165)						38,261
Mutual funds:
Equity			1						19						4						—						23
Fixed Income			2						8,215						144						(889)						7,470
Trust securities									$	68,006					$	8,841					$	(4,113)					$	72,734
Accrued investment income									$	791																	$	791
Cemetery perpetual care investments																											$	73,525
Market value as a percentage of cost																											107.0%

The estimated maturities of the fixed income securities (excluding mutual funds) included above are as follows (in thousands):

Due in one year or less			$	763
Due in one to five years			4,614
Due in five to ten years			4,476
Thereafter			16,862
Total fixed income securities			$	26,715

The following table reflects the cost and market values associated with the trust investments held in cemetery perpetual care trust funds at December 31, 2021 (in thousands):

			Fair Value Hierarchy Level						Cost						Unrealized Gains						Unrealized Losses						Fair Market Value
Cash and money market accounts			1						$	1,447					$	—					$	—					$	1,447
Fixed income securities:
Foreign debt			2						10,949						1,401						(647)						11,703
Corporate debt			2						9,139						1,065						(32)						10,172
Preferred stock			2						9,742						803						(226)						10,319
Common stock			1						27,853						4,990						(3,008)						29,835
Mutual funds:
Equity			1						19						5						—						24
Fixed income			2						8,141						530						(460)						8,211
Trust securities									$	67,290					$	8,794					$	(4,373)					$	71,711
Accrued investment income									$	689																	$	689
Cemetery perpetual care investments																											$	72,400
Market value as a percentage of cost																											106.6%

The following table summarized our fixed income securities (excluding mutual funds) within our cemetery perpetual care trust investment in an unrealized loss position at March 31, 2022, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

			March 31, 2022
			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			$	763					$	(9)					$	586					$	(216)					$	1,349					$	(225)
Corporate debt			5,004						(610)						—						—						5,004						(610)
Preferred stock			2,973						(76)						2,682						(148)						5,655						(224)
Total fixed income securities with an unrealized loss			$	8,740					$	(695)					$	3,268					$	(364)					$	12,008					$	(1,059)

The following table summarized our fixed income securities (excluding mutual funds) within our perpetual care trust investment in an unrealized loss position at December 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

			December 31, 2021
			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			$	2,649					$	(321)					$	468					$	(326)					$	3,117					$	(647)
Corporate debt			846						(32)						—						—						846						(32)
Preferred stock			856						(41)						1,917						(185)						2,773						(226)
Total fixed income securities with an unrealized loss			$	4,351					$	(394)					$	2,385					$	(511)					$	6,736					$	(905)

Cemetery perpetual care trust investment security transactions recorded in Other, net on our Consolidated Statements of Operations are as follows (in thousands):

			Three months ended March 31,
			2021						2022
Realized gains			$	691					$	250
Realized losses			(420)						(8)
Unrealized gains, net			7,699						4,728
Net change in Care trusts’ corpus			(7,970)						(4,970)
Total			$	—					$	—

Cemetery perpetual care trust investment security transactions recorded in Other revenue are as follows (in thousands):

			Three months ended March 31,
			2021						2022
Investment income			$	2,513					$	2,762
Realized losses, net			(138)						(346)
Total			$	2,375					$	2,416

Purchases and sales of investments in the cemetery perpetual care trusts are as follows (in thousands):

			Three months ended March 31,
			2021						2022
Purchases			$	(6,137)					$	(131)
Sales			5,956						—

X

- Definition

PRENEED TRUST INVESTMENTS

+ References

No definition available.

+ Details

Name:	csv_PreneedTrustInvestmentsAbstract
Namespace Prefix:	csv_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

This note represents disclosures relating to preneed funeral and cemetery activity and major accounts which also include: (1) fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments; (2) variable interest entities; and (3)all other required (as defined) and desired information.

+ References

No definition available.

+ Details

Name:	csv_PreneedTrustInvestmentsTextBlock
Namespace Prefix:	csv_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration