REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenues

Our operations are reported in two business segments: Funeral Home Operations and Cemetery Operations. Revenues, disaggregated by major source for each of our reportable segments was as follows (in thousands):



Three Months Ended September 30, 2018
	Funeral		Cemetery		Total
Services	$	30,231	$	2,774	$	33,005
Merchandise	17,525		2,064		19,589
Cemetery interment rights	—		7,435		7,435
Revenue from contracts with customers	$	47,756	$	12,273	$	60,029

Preneed funeral commission income	$	360	$	—	$	360
Preneed trust earnings	1,594		1,440		3,034
Preneed trust management fees	133		201		334
Preneed cemetery finance charges	—		484		484
Financial revenues	2,087		2,125		4,212
Total Revenues	$	49,843	$	14,398	$	64,241



Three Months Ended September 30, 2017
	Funeral		Cemetery		Total
Services	$	28,385	$	2,803	$	31,188
Merchandise	17,011		1,932		18,943
Cemetery interment rights	—		6,773		6,773
Revenue from contracts with customers	$	45,396	$	11,508	$	56,904

Preneed funeral commission income	$	315	$	—	$	315
Preneed trust earnings	1,481		1,566		3,047
Preneed trust management fees	137		202		339
Preneed cemetery finance charges	—		449		449
Financial revenues	1,933		2,217		4,150
Total Revenues	$	47,329	$	13,725	$	61,054



Nine Months Ended September 30, 2018
	Funeral		Cemetery		Total
Services	$	94,818	$	8,850	$	103,668
Merchandise	55,539		6,386		61,925
Cemetery interment rights	—		22,808		22,808
Revenue from contracts with customers	$	150,357	$	38,044	$	188,401

Preneed funeral commission income	$	974	$	—	$	974
Preneed trust earnings	5,236		4,422		9,658
Preneed trust management fees	402		613		1,015
Preneed cemetery finance charges	—		1,427		1,427
Financial revenues	6,612		6,462		13,074
Total Revenues	$	156,969	$	44,506	$	201,475



Nine Months Ended September 30, 2017
	Funeral		Cemetery		Total
Services	$	90,392	$	8,734	$	99,126
Merchandise	53,649		5,936		59,585
Cemetery interment rights	—		21,221		21,221
Revenue from contracts with customers	$	144,041	$	35,891	$	179,932

Preneed funeral commission income	$	951	$	—	$	951
Preneed trust earnings	4,875		4,908		9,783
Preneed trust management fees	412		604		1,016
Preneed cemetery finance charges	—		1,381		1,381
Financial revenues	6,238		6,893		13,131
Total Revenues	$	150,279	$	42,784	$	193,063

Deferred Revenue

Deferred revenue is presented net of amounts due on undelivered preneed contracts shown below as of January 1, 2018 and September 30, 2018 (in thousands):



	January 1, 2018⁽¹⁾			September 30, 2018
Contract liabilities:
Deferred preneed cemetery revenue	$	54,690		$	50,642
Less: Balances due on undelivered cemetery preneed contracts⁽²⁾	(4,594		)	(4,486		)
Deferred preneed cemetery revenue, net	$	50,096		$	46,156

Deferred preneed funeral revenue	$	34,585		$	36,461
Less: Balances due on undelivered funeral preneed contracts⁽³⁾	(7,934		)	(8,308		)
Deferred preneed funeral revenue, net	$	26,651		$	28,153




(1)	January 1, 2018 balances have been adjusted to reflect the cumulative effect of changes for the adoption of ASC 606.
(2)	In accordance with Topic 606, $1.4 million of cemetery accounts receivables have been reclassified to reduce deferred preneed cemetery revenue at both January 1, 2018 and September 30, 2018 and $3.2 million and $3.1 million of preneed cemetery receivables have been reclassified to reduce deferred preneed cemetery revenue at January 1, 2018 and September 30, 2018, respectively.
(3)	In accordance with Topic 606, $7.9 million and $8.3 million of preneed funeral receivables have been reclassified to reduce deferred preneed funeral revenue at January 1, 2018 and September 30, 2018, respectively.

Our merchandise and service performance obligations related to our preneed contracts are considered fulfilled at the point in time the merchandise is delivered or the burial, cremation or interment service is performed. The transaction price allocated to preneed merchandise and service performance obligations that were unfulfilled at September 30, 2018 was $4.5 million for preneed cemetery contracts and $8.3 million for preneed funeral contracts. As these performance obligations are to be completed after the date of death, we cannot quantify the recognition of revenue for any given period. However, we estimate an average maturity period of eight years for preneed cemetery contracts and ten years for preneed funeral contracts.