Receivables from Preneed Trusts

9 Months Ended

Sep. 30, 2020

Receivables From Preneed Trusts [Abstract]

Our Receivables from preneed trusts represent assets in trusts which are controlled and operated by third parties in which we do not have a controlling financial interest (less than 50%) in the trust assets. We account for these investments at cost. As of December 31, 2019 and September 30, 2020, receivables from preneed trusts are as follows (in thousands):


	December 31, 2019		September 30, 2020
Preneed trust funds, at cost	$	18,581	$	18,345
Less: allowance for contract cancellation	(557)		(551)
Receivables from preneed trusts, net	$	18,024	$	17,794

The following summary reflects the composition of the assets held in trust and controlled by third parties to satisfy our future obligations under preneed arrangements related to the preceding contracts at September 30, 2020 and December 31, 2019. The cost basis includes reinvested interest and dividends that have been earned on the trust assets. Fair value includes unrealized gains and losses on trust assets.

The composition of the preneed trust funds at September 30, 2020 is as follows (in thousands):


	Historical Cost Basis		Fair Value
Cash and cash equivalents	$	4,465	$	4,465
Fixed income investments	11,390		11,390
Mutual funds and common stocks	2,486		2,639
Annuities	4		4
Total	$	18,345	$	18,498

The composition of the preneed trust funds at December 31, 2019 is as follows (in thousands):


	Historical Cost Basis		Fair Value
Cash and cash equivalents	$	4,533	$	4,533
Fixed income investments	11,603		11,603
Mutual funds and common stocks	2,440		2,518
Annuities	5		5
Total	$	18,581	$	18,659