Consolidation of Variable Interest Entity

12 Months Ended

Jun. 30, 2012

Consolidation of Variable Interest Entity [Text Block]

3.	Consolidation of Variable Interest Entity
	The Company identifies variable interest entities (VIEs) and determines when they should include the assets, liabilities, non-controlling interests and results of activities of a VIE in its consolidated financial statement.

In general, a VIE is a corporation, partnership, limited liability company, trust, or any other legal structure used to conduct activities or hold assets that either (1) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (2) has a group of equity owners that are unable to make significiant decisions about its activities, or (3) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns generated by its operations.

The Company has determined they are required to consolidate the preneed cemetery merchandise and service trusts and the cemetery perpetual care trust (the trusts) as variable interest entities in its consolidated balance sheet due to the equity investors not having the characteristics of a controlling financial interest or do not have a sufficient amount of equity to carry out its principal activities without additional subordinated financial support. The consolidation affected certain line items in the consolidated balance sheet, but had no impact on net earnings. Also, the consolidation does not result in any net changes to the Company’s consolidated statement of cash flows, but does require disclosure of certain financing and investing activities.

See further discussion of the trusts in Notes 4 and 5.