Deferred Preneed Receipts Held in Trust and Care Trusts’ Corpus

Deferred Preneed Receipts Held in Trust

We consolidate the merchandise and service trusts associated with our preneed activities. Although the consolidation of the merchandise and service trusts is required by accounting standards, it does not change the legal relationships among the trusts, us, or our customers. The customers are the legal beneficiaries of these merchandise and service trusts, and therefore their interests in these trusts represent a liability to us.

The components of Deferred preneed receipts held in trust in our unaudited condensed Consolidated Balance Sheet at June 30, 2016 and December 31, 2015 are detailed below.



	June 30, 2016									December 31, 2015
	Preneed Funeral			Preneed Cemetery			Total			Preneed Funeral			Preneed Cemetery			Total
	(In thousands)
Trust investments	$	1,527,271		$	1,493,821		$	3,021,092		$	1,515,113		$	1,462,499		$	2,977,612
Accrued trust operating payables and other	(384		)	(301		)	(685		)	(1,381		)	(2,845		)	(4,226		)
Deferred preneed receipts held in trust	$	1,526,887		$	1,493,520		$	3,020,407		$	1,513,732		$	1,459,654		$	2,973,386

Care Trusts’ Corpus

The Care trusts’ corpus reflected in our unaudited condensed Consolidated Balance Sheet represents the cemetery perpetual care trusts, including the related accrued expenses.

The components of Care trusts’ corpus in our unaudited condensed Consolidated Balance Sheet at June 30, 2016 and December 31, 2015 are detailed below.



	June 30, 2016		December 31, 2015
	(In thousands)
Cemetery perpetual care trust investments	$	1,363,428	$	1,319,427
Accrued trust operating payables and other	616		137
Care trusts’ corpus	$	1,364,044	$	1,319,564

Other Expense, Net

The components of Other expense, net in our unaudited condensed Consolidated Statement of Operations for the three and six months ended June 30, 2016 and 2015 are detailed below. See Notes 3, 4, and 5 for further discussion of the amounts related to the funeral, cemetery, and cemetery perpetual care trusts.



	Three Months Ended June 30, 2016
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net			Total
				(In thousands)
Realized gains	$	6,246		$	11,673		$	2,300		$	—		$	20,219
Realized losses	(10,201		)	(18,596		)	(3,725		)	—			(32,522		)
Impairment charges	(2,082		)	(2,632		)	—			—			(4,714		)
Interest, dividend, and other ordinary income	5,955			1,355			14,065			—			21,375
Trust expenses and income taxes	(3,752		)	(1,367		)	(8,147		)	—			(13,266		)
Net trust investment (loss) income	(3,834		)	(9,567		)	4,493			—			(8,908		)
Reclassification to deferred preneed receipts held in trust and care trusts’ corpus	3,834			9,567			(4,493		)	—			8,908
Other expense, net	—			—			—			(535		)	(535		)
Total other expense, net	$	—		$	—		$	—		$	(535	)	$	(535	)



	Six Months Ended June 30, 2016
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net			Total
				(In thousands)
Realized gains	$	13,070		$	17,919		$	3,794		$	—		$	34,783
Realized losses	(29,852		)	(41,449		)	(5,341		)	—			(76,642		)
Impairment charges	(3,200		)	(4,681		)	(115		)	—			(7,996		)
Interest, dividend, and other ordinary income	8,728			3,715			27,055			—			39,498
Trust expenses and income taxes	(8,194		)	(6,220		)	(13,904		)	—			(28,318		)
Net trust investment (loss) income	(19,448		)	(30,716		)	11,489			—			(38,675		)
Reclassification to deferred preneed receipts held in trust and care trusts’ corpus	19,448			30,716			(11,489		)	—			38,675
Other expense, net	—			—			—			(746		)	(746		)
Total other expense, net	$	—		$	—		$	—		$	(746	)	$	(746	)



	Three Months Ended June 30, 2015
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net			Total
				(In thousands)
Realized gains	$	9,856		$	16,406		$	1,753		$	—		$	28,015
Realized losses	(3,838		)	(6,398		)	(4,192		)	—			(14,428		)
Impairment charges	(1,023		)	(1,531		)	(996		)	—			(3,550		)
Interest, dividend, and other ordinary income	8,820			8,262			15,789			—			32,871
Trust expenses and income taxes	(4,010		)	(6,592		)	(16,570		)	—			(27,172		)
Net trust investment (loss) income	9,805			10,147			(4,216		)	—			15,736
Reclassification to deferred preneed receipts held in trust and care trusts’ corpus	(9,805		)	(10,147		)	4,216			—			(15,736		)
Other expense, net	—			—			—			(109		)	(109		)
Total other expense, net	$	—		$	—		$	—		$	(109	)	$	(109	)



	Six Months Ended June 30, 2015
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net			Total
				(In thousands)
Realized gains	$	14,205		$	23,541		$	2,151		$	—		$	39,897
Realized losses	(8,572		)	(13,427		)	(4,322		)	—			(26,321		)
Impairment charges	(1,495		)	(2,050		)	(1,507		)	—			(5,052		)
Interest, dividend, and other ordinary income	12,882			11,778			26,334			—			50,994
Trust expenses and income taxes	(9,837		)	(15,107		)	(22,843		)	—			(47,787		)
Net trust investment (loss) income	7,183			4,735			(187		)	—			11,731
Reclassification to deferred preneed receipts held in trust and care trusts’ corpus	(7,183		)	(4,735		)	187			—			(11,731		)
Other expense, net	—			—			—			(167		)	(167		)
Total other expense, net	$	—		$	—		$	—		$	(167	)	$	(167	)