Deferred Preneed Funeral and Cemetery Receipts Held in Trust and Care Trusts’ Corpus

Deferred Preneed Funeral and Cemetery Receipts Held in Trust

We consolidate the merchandise and service trusts associated with our preneed funeral and cemetery activities in accordance with the Consolidation Topic of the ASC. Although the guidance requires the consolidation of the merchandise and service trusts, 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; therefore, their interests in these trusts represent a liability to us.

The components of Deferred preneed funeral and cemetery receipts held in trust in our consolidated balance sheet at December 31, 2012 and 2011 are detailed below.



	December 31, 2012										December 31, 2011
	Preneed Funeral				Preneed Cemetery			Total			Preneed Funeral				Preneed Cemetery			Total
				(In thousands)										(In thousands)
Trust investments	$	1,337,014			$	1,291,016		$	2,628,030		$	1,271,446			$	1,156,023		$	2,427,469
Accrued trust operating payables and other	(1,827		)		(1,882		)	(3,709		)	(1,261		)		(1,852		)	(3,113		)
Deferred preneed funeral and cemetery receipts held in trust	$	1,335,187			$	1,289,134		$	2,624,321		$	1,270,185			$	1,154,171		$	2,424,356

Care Trusts’ Corpus

The Care trusts’ corpus reflected in our consolidated balance sheet represents the cemetery perpetual care trusts, including the related accrued expenses.

The components of Care trusts’ corpus in our consolidated balance sheet at December 31, 2012 and 2011 are detailed below.



	December 31, 2012			December 31, 2011
	(In thousands)
Cemetery perpetual care trust investments	$	1,099,580		$	1,016,506
Accrued trust operating payables and other	(828		)	(1,206		)
Care trusts’ corpus	$	1,098,752		$	1,015,300

Other Income (Expense), Net

The components of Other income (expense), net in our consolidated statement of operations for the years ended December 31, 2012, 2011, and 2010 are detailed below. See Notes 4, 5, and 6 for further discussion of the amounts related to our funeral, cemetery, and cemetery perpetual care trusts.



	Year Ended December 31, 2012
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net		Total
							(In thousands)
Realized gains	$	60,833		$	87,665		$	11,463		$	—	$	159,961
Realized losses	(21,454		)	(29,397		)	(6,595		)	—		(57,446		)
Impairment charges	(781		)	(824		)	(760		)	—		(2,365		)
Interest, dividend, and other ordinary income	17,017			17,244			34,032			—		68,293
Trust expenses and income taxes	(10,685		)	(13,389		)	(1,355		)	—		(25,429		)
Net trust investment income	44,930			61,299			36,785			—		143,014
Reclassification to deferred preneed funeral and cemetery receipts held in trust and care trusts’ corpus	(44,930		)	(61,299		)	(36,785		)	—		(143,014		)
Other income (expense), net	—			—			—			3,668		3,668
Total other income (expense), net	$	—		$	—		$	—		$	3,668	$	3,668



	Year Ended December 31, 2011
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net			Total
	(In thousands)
Realized gains	$	61,272		$	67,167		$	34,275		$	—		$	162,714
Realized losses	(41,162		)	(46,889		)	(16,310		)	—			(104,361		)
Impairment charges	(24,705		)	(28,705		)	(741		)	—			(54,151		)
Interest, dividend, and other ordinary income	22,283			26,902			35,467			—			84,652
Trust expenses and income taxes	(7,303		)	(10,579		)	(2,774		)	—			(20,656		)
Net trust investment (loss) income	10,385			7,896			49,917			—			68,198
Reclassification to deferred preneed funeral and cemetery receipts held in trust and care trusts’ corpus	(10,385		)	(7,896		)	(49,917		)	—			(68,198		)
Other income (expense), net	—			—			—			(772		)	(772		)
Total other income (expense), net	$	—		$	—		$	—		$	(772	)	$	(772	)



	December 31, 2010
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net		Total
							(In thousands)
Realized gains	$	36,807		$	43,413		$	11,753		$	—	$	91,973
Realized losses	(46,601		)	(51,771		)	(9,792		)	—		(108,164		)
Impairment charges	(8,135		)	(5,749		)	(7,771		)	—		(21,655		)
Interest, dividend, and other ordinary income	18,571			22,464			34,356			—		75,391
Trust expenses and income taxes	(4,920		)	(9,708		)	(1,872		)	—		(16,500		)
Net trust investment (loss) income	(4,278		)	(1,351		)	26,674			—		21,045
Reclassification to deferred preneed funeral and cemetery receipts held in trust and care trusts’ corpus	4,278			1,351			(26,674		)	—		(21,045		)
Other (expense) income, net	—			—			—			3,009		3,009
Total other (expense) income, net	$	—		$	—		$	—		$	3,009	$	3,009