Receivables

9 Months Ended

Sep. 30, 2023

Preneed Cemetery Receivables [Abstract]

RECEIVABLES

Accounts Receivable

Our funeral receivables are recorded in Accounts receivable, net and primarily consist of amounts due for funeral services already performed.

Atneed cemetery receivables and preneed cemetery receivables with payments expected to be received within one year from the balance sheet date are also recorded in Accounts receivable, net. Preneed cemetery receivables with payments expected to be received beyond one year from the balance sheet date are recorded in Preneed cemetery receivables, net.

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


	September 30, 2023
	Funeral		Cemetery		Corporate		Total
Trade and financed receivables	$	7,983	$	18,240	$	—	$	26,223
Other receivables	336		391		100		827
Allowance for credit losses	(285)		(1,241)		—		(1,526)
Accounts receivable, net	$	8,034	$	17,390	$	100	$	25,524


	December 31, 2022
	Funeral		Cemetery		Corporate		Total
Trade and financed receivables	$	9,518	$	14,429	$	—	$	23,947
Other receivables	643		833		48		1,524
Allowance for credit losses	(311)		(702)		—		(1,013)
Accounts receivable, net	$	9,850	$	14,560	$	48	$	24,458

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 segment (in thousands):


	January 1, 2023		Provision for Credit Losses		Write Offs		Recoveries		September 30, 2023
Trade and financed receivables:
Funeral	$	(311)	$	(858)	$	1,745	$	(861)	$	(285)
Cemetery	(702)		(548)		9		—		(1,241)
Total allowance for credit losses on trade and financed receivables	$	(1,013)	$	(1,406)	$	1,754	$	(861)	$	(1,526)

Balances due on undelivered preneed funeral trust contracts have been reclassified to reduce Deferred preneed funeral revenue on our Consolidated Balance Sheet of $8.9 million and $10.7 million at December 31, 2022 and September 30, 2023, respectively. As these performance obligations are to be completed after the date of death, we cannot quantify the recognition of revenue in future periods. However, we estimate an average maturity period of ten years for preneed funeral contracts.

Preneed Cemetery Receivables

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


	December 31, 2022		September 30, 2023
Interment rights	$	45,351	$	58,032
Merchandise and services	8,585		10,574
Unearned finance charges	4,894		5,407
Preneed cemetery receivables	$	58,830	$	74,013

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


	December 31, 2022		September 30, 2023
Preneed cemetery receivables	$	58,830	$	74,013
Less: unearned finance charges	(4,894)		(5,407)
Preneed cemetery receivables, at amortized cost	$	53,936	$	68,606
Less: allowance for credit losses	(1,985)		(3,548)
Less: balances due on undelivered cemetery preneed contracts	(11,552)		(13,727)
Less: amounts in accounts receivable	(13,727)		(16,999)
Preneed cemetery receivables, net	$	26,672	$	34,332

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


	January 1, 2023		Provision for Credit Losses		Write Offs		September 30, 2023
Total allowance for credit losses on Preneed cemetery receivables, net	$	(1,283)	$	(908)	$	(116)	$	(2,307)

The amortized cost basis of our preneed cemetery receivables by year of origination at September 30, 2023 is as follows (in thousands):


	2023		2022		2021		2020		2019		Prior		Total
Total preneed cemetery receivables, at amortized cost	$	27,143	$	21,505	$	11,134	$	5,312	$	1,909	$	1,603	$	68,606

The aging of past due preneed cemetery receivables at September 30, 2023 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
Recognized revenue	$	1,174	$	739	$	648	$	3,686	$	6,247	$	48,632	$	54,879
Deferred revenue	281		294		124		1,292		1,991		17,143		19,134
Total contracts	$	1,455	$	1,033	$	772	$	4,978	$	8,238	$	65,775	$	74,013

Balances due on undelivered preneed cemetery contracts have been reclassified to reduce Deferred preneed cemetery revenue on our Consolidated Balance Sheet. The transaction price allocated to preneed merchandise and service performance obligations that were unfulfilled were $11.6 million and $13.7 million at December 31, 2022 and September 30, 2023, respectively. As these performance obligations are to be completed after the date of death, we cannot quantify the recognition of revenue in future periods. However, we estimate an average maturity period of eight years for preneed cemetery contracts.