XML 64 R23.htm IDEA: XBRL DOCUMENT v3.3.0.814
Preneed Trust Investments (Tables)
 9 Months Ended
Sep. 30, 2015
Preneed Trust Investments [Abstract]  
Components of preneed cemetery trust investments
The components of Preneed cemetery trust investments on our Consolidated Balance Sheets at December 31, 2014 and September 30, 2015 were as follows (in thousands):
 
December 31, 2014
 
September 30, 2015
Preneed cemetery trust investments, at fair value
$
74,198

 
$
67,000

Less: allowance for contract cancellation
(2,226
)
 
(2,263
)
Preneed cemetery trust investments, net
$
71,972

 
$
64,737
Cost and fair market values associated with preneed cemetery trust investments
The cost and fair market values associated with preneed cemetery trust investments at December 31, 2014 are detailed below (in thousands):
 
Fair Value Hierarchy Level
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Market
Value
Cash and money market accounts
1
 
$
5,591

 
$
—

 
$
—

 
$
5,591

Fixed income securities:
 
 
 
 
 
 
 
 
 
Municipal bonds
2
 
347

 
9

 
—

 
356

Foreign debt
2
 
5,874

 
—

 
(237
)
 
5,637

Corporate debt
2
 
30,108

 
362

 
(2,167
)
 
28,303

Preferred stock
2
 
19,154

 
199

 
(325
)
 
19,028

Mortgage backed securities
2
 
1

 
—

 
—

 
1

Common stock
1
 
13,128

 
2,357

 
(966
)
 
14,519

Trust securities
 
 
$
74,203

 
$
2,927

 
$
(3,695
)
 
$
73,435

Accrued investment income
 
 
$
763

 
 
 
 
 
$
763

Preneed cemetery trust investments
 
 
 
 
 
 
 
 
$
74,198

Market value as a percentage of cost
 
 
 
 
 
 
 
 
99.0
%
The cost and fair market values associated with preneed cemetery trust investments at September 30, 2015 are detailed below (in thousands):
 
Fair Value Hierarchy Level
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Market
Value
Cash and money market accounts
1
 
$
1,991

 
$
—

 
$
—

 
$
1,991

Fixed income securities:
 
 
 
 
 
 
 
 
 
Municipal bonds
2
 
457

 
—

 
(49
)
 
408

Foreign debt
2
 
5,567

 
11

 
(488
)
 
5,090

Corporate debt
2
 
25,636

 
122

 
(3,063
)
 
22,695

Preferred stock
2
 
16,196

 
41

 
(666
)
 
15,571

Common stock
1
 
25,602

 
316

 
(5,586
)
 
20,332

Trust securities
 
 
$
75,449

 
$
490

 
$
(9,852
)
 
$
66,087

Accrued investment income
 
 
$
913

 
 
 
 
 
$
913

Preneed cemetery trust investments
 
 
 
 
 
 
 
 
$
67,000

Market value as a percentage of cost
 
 
 
 
 
 
 
 
87.6
%
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
$
145

Due in one to five years
5,852

Due in five to ten years
4,783

Thereafter
32,984

Total
$
43,764
Schedule of fair market value and unrealized loss on cemetery merchandise and service trust investments
Our cemetery merchandise and service trust investment unrealized losses, their associated fair market values, and the duration of unrealized losses as of September 30, 2015 and December 31, 2014, are shown in the following tables (in thousands):
 
September 30, 2015
 
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:
 
 
 
 
 
 
 
 
 
 
 
Municipal bonds
$
408

 
$
(49
)
 
$
—

 
$
—

 
$
408

 
$
(49
)
Foreign debt
2,776

 
(427
)
 
717

 
(61
)
 
3,493

 
(488
)
Corporate debt
17,779

 
(2,260
)
 
2,972

 
(803
)
 
20,751

 
(3,063
)
Preferred stock
15,636

 
(666
)
 
—

 
—

 
15,636

 
(666
)
Common stock
18,538

 
(4,794
)
 
1,007

 
(792
)
 
19,545

 
(5,586
)
Total temporary impaired securities
$
55,137

 
$
(8,196
)
 
$
4,696

 
$
(1,656
)
 
$
59,833

 
$
(9,852
)
 
December 31, 2014
 
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
$
5,629

 
$
(237
)
 
$
—

 
$
—

 
$
5,629

 
$
(237
)
Corporate debt
18,051

 
(778
)
 
2,016

 
(1,389
)
 
20,067

 
(2,167
)
Preferred stock
10,342

 
(289
)
 
3,236

 
(36
)
 
13,578

 
(325
)
Common stock
6,904

 
(911
)
 
65

 
(55
)
 
6,969

 
(966
)
Total temporary impaired securities
$
40,926

 
$
(2,215
)
 
$
5,317

 
$
(1,480
)
 
$
46,243

 
$
(3,695
)
Preneed cemetery trust investment security transactions
Preneed cemetery trust investment security transactions recorded in Interest expense on our Consolidated Statements of Operations for the three and nine months ended September 30, 2014 and 2015 were as follows (in thousands):
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2014
 
2015
 
2014
 
2015
Investment income
$
504

 
$
471

 
$
1,936

 
$
1,762

Realized gains
1,970

 
1,170

 
3,670

 
2,844

Realized losses
(124
)
 
(276
)
 
(952
)
 
(1,166
)
Expenses and taxes
(387
)
 
(361
)
 
(1,329
)
 
(1,455
)
Increase in deferred preneed cemetery receipts held in trust
(1,963
)
 
(1,004
)
 
(3,325
)
 
(1,985
)
 
$
—

 
$
—

 
$
—

 
$
—
Purchases and sales of investments in preneed cemetary trusts
Purchases and sales of investments in the preneed cemetery trusts were as follows (in thousands):
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2014
 
2015
 
2014
 
2015
Purchases
$
(17,814
)
 
$
(11,719
)
 
$
(39,472
)
 
$
(24,575
)
Sales
$
18,061

 
$
4,417

 
$
40,981

 
$
14,610
Components of preneed funeral trust investments
The components of Preneed funeral trust investments on our Consolidated Balance Sheets at December 31, 2014 and September 30, 2015 were as follows (in thousands):
 
December 31, 2014
 
September 30, 2015
Preneed funeral trust investments, at market value
$
100,579

 
$
90,467

Less: allowance for contract cancellation
(2,972
)
 
(2,976
)
Preneed funeral trust investments, net
$
97,607

 
$
87,491
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
$
416

Due in one to five years
6,861

Due in five to ten years
5,738

Thereafter
36,070

Total
$
49,085
Cost and fair market values associated with preneed funeral trust investments
The cost and fair market values associated with preneed funeral trust investments at December 31, 2014 are detailed below (in thousands):
 
Fair Value Hierarchy Level
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Market
Value
Cash and money market accounts
1
 
$
17,501

 
$
—

 
$
—

 
$
17,501

Fixed income securities:
 
 
 
 
 
 
 
 
 
U.S. treasury debt
1
 
2,037

 
32

 
(15
)
 
2,054

U.S. agency obligations
2
 
30

 
—

 
—

 
30

Foreign debt
2
 
4,653

 
—

 
(188
)
 
4,465

Corporate debt
2
 
24,761

 
469

 
(1,718
)
 
23,512

Preferred stock
2
 
16,166

 
256

 
(261
)
 
16,161

Mortgage backed securities
2
 
309

 
8

 
(3
)
 
314

Common stock
1
 
10,544

 
1,926

 
(783
)
 
11,687

Mutual funds:
 
 
 
 
 
 
 
 
 
Equity
1
 
14,126

 
1,370

 
(181
)
 
15,315

Fixed income
2
 
5,351

 
115

 
(72
)
 
5,394

Other investments
2
 
3,560

 
—

 
(29
)
 
3,531

Trust securities
 
 
$
99,038

 
$
4,176

 
$
(3,250
)
 
$
99,964

Accrued investment income
 
 
$
615

 
 
 
 
 
$
615

Preneed funeral trust investments
 
 
 
 
 
 
 
 
$
100,579

Market value as a percentage of cost
 
 
 
 
 
 
 
 
100.9
%
The cost and fair market values associated with preneed funeral trust investments at September 30, 2015 are detailed below (in thousands):
 
Fair Value Hierarchy Level
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Market
Value
Cash and money market accounts
1
 
$
14,687

 
$
—

 
$
—

 
$
14,687

Fixed income securities:
 
 
 
 
 
 
 
 
 
U.S treasury debt
1
 
1,747

 
38

 
—

 
1,785

Municipal bonds
2
 
480

 
—

 
(52
)
 
428

Foreign debt
2
 
5,783

 
12

 
(500
)
 
5,295

Corporate debt
2
 
27,568

 
169

 
(3,453
)
 
24,284

Preferred stock
2
 
17,571

 
137

 
(694
)
 
17,014

Mortgage backed securities
2
 
277

 
5

 
(3
)
 
279

Common stock
1
 
26,509

 
364

 
(5,673
)
 
21,200

Mutual funds:
 
 
 
 
 
 
 
 
 
Fixed income
2
 
959

 
—

 
(68
)
 
891

Other investments
2
 
3,627

 
—

 
(31
)
 
3,596

Trust securities
 
 
$
99,208

 
$
725

 
$
(10,474
)
 
$
89,459

Accrued investment income
 
 
$
1,008

 
 
 
 
 
$
1,008

Preneed funeral trust investments
 
 
 
 
 
 
 
 
$
90,467

Market value as a percentage of cost
 
 
 
 
 
 
 
 
90.2
%
Schedule of fair market value and unrealized loss on preneed funeral trust investments
Our preneed funeral trust investment unrealized losses, their associated fair market values, and the duration of unrealized losses as of September 30, 2015 and December 31, 2014 are shown in the following tables (in thousands):
 
September 30, 2015
 
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:
 
 
 
 
 
 
 
 
 
 
 
Municipal bonds
429

 
(52
)
 
—

 
—

 
429

 
(52
)
Foreign debt
2,844

 
(438
)
 
735

 
(62
)
 
3,579

 
(500
)
Corporate debt
20,047

 
(2,548
)
 
3,351

 
(905
)
 
23,398

 
(3,453
)
Preferred stock
16,280

 
(694
)
 
—

 
—

 
16,280

 
(694
)
Mortgage backed securities
125

 
(2
)
 
17

 
(1
)
 
142

 
(3
)
Common Stock
18,830

 
(4,869
)
 
1,023

 
(804
)
 
19,853

 
(5,673
)
Mutual funds:
 
 
 
 
 
 
 
 
 
 
 
Fixed income
330

 
(32
)
 
560

 
(36
)
 
890

 
(68
)
Other investments
—

 
—

 
42

 
(31
)
 
42

 
(31
)
Total temporary impaired securities
$
58,885

 
$
(8,635
)
 
$
5,728

 
$
(1,839
)
 
$
64,613

 
$
(10,474
)
 
December 31, 2014
 
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. debt
$
500

 
$
—

 
$
836

 
$
(15
)
 
$
1,336

 
$
(15
)
Foreign debt
4,471

 
(188
)
 
—

 
—

 
4,471

 
(188
)
Corporate debt
14,310

 
(617
)
 
1,598

 
(1,101
)
 
15,908

 
(1,718
)
Preferred stock
8,300

 
(232
)
 
2,597

 
(29
)
 
10,897

 
(261
)
Mortgage backed securities
—

 
—

 
51

 
(3
)
 
51

 
(3
)
Mutual funds:
 
 
 
 
 
 
 
 
 
 
 
Equity
5,594

 
(739
)
 
53

 
(44
)
 
5,647

 
(783
)
Equity and other
4,204

 
(180
)
 
6

 
(1
)
 
4,210

 
(181
)
Fixed income
888

 
(19
)
 
1,026

 
(53
)
 
1,914

 
(72
)
Other investments
—

 
—

 
42

 
(29
)
 
42

 
(29
)
Total temporary impaired securities
$
38,267

 
$
(1,975
)
 
$
6,209

 
$
(1,275
)
 
$
44,476

 
$
(3,250
)
Preneed funeral trust investment security transactions
Preneed funeral trust investment security transactions recorded in Interest expense on the Consolidated Statements of Operations for the three and nine months ended September 30, 2014 and 2015 were as follows (in thousands):
 
For the Three Months Ended September 30,
 
For the Nine Months Ended
September 30,
 
2014
 
2015
 
2014
 
2015
Investment income
$
576

 
$
554

 
$
2,067

 
$
1,982

Realized gains
1,605

 
1,218

 
5,036

 
3,791

Realized losses
(105
)
 
(504
)
 
(841
)
 
(1,374
)
Expenses and taxes
(260
)
 
140

 
(1,158
)
 
(694
)
Increase in deferred preneed funeral receipts held in trust
(1,816
)
 
(1,408
)
 
(5,104
)
 
(3,705
)
 
$
—

 
$
—

 
$
—

 
$
—
Purchases and sales of investments in preneed funeral trusts
Purchases and sales of investments in the preneed funeral trusts were as follows (in thousands):
 
For the Three Months Ended September 30,
 
For the Nine Months Ended
September 30,
 
2014
 
2015
 
2014
 
2015
Purchases
$
(14,630
)
 
$
(12,323
)
 
$
(44,147
)
 
$
(23,668
)
Sales
$
14,691

 
$
10,998

 
$
44,840

 
$
33,736