DEFERRED REVENUES

6 Months Ended

Jun. 30, 2016

12. DEFERRED REVENUES

The Partnership defers revenues and all direct costs associated with the sale of pre-need cemetery merchandise and services until the merchandise is delivered or the services are performed. The Partnership recognizes deferred merchandise and service revenues as deferred revenues within long-term liabilities on its consolidated balance sheet. The Partnership recognizes deferred direct costs associated with pre-need merchandise and service revenues as deferred selling and obtaining costs within long-term assets on its consolidated balance sheet. The Partnership also defers the costs to obtain new pre-need cemetery and new prearranged funeral business as well as the investment earnings on the prearranged services and merchandise trusts.

At June 30, 2016 and December 31, 2015, deferred revenues consisted of the following (in thousands):


	June 30, 2016			December 31, 2015
Deferred contract revenues	$	785,072		$	759,812
Deferred merchandise trust revenue		90,045			80,294
Deferred merchandise trust unrealized gains (losses)		(6,923	)		(24,685	)

Deferred revenues	$	868,194		$	815,421

Deferred selling and obtaining costs	$	118,410		$	111,542

- Definition

The entire disclosure for deferred revenues at the end of the reporting period, and description and amounts of significant changes that occurred during the reporting period. Deferred revenue is a liability as of the balance sheet date related to a revenue producing activity for which revenue has not yet been recognized. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP.

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