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, and 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 unaudited condensed consolidated balance sheet at March 31, 2014 and December 31, 2013 are detailed below.



	March 31, 2014									December 31, 2013
	Preneed Funeral			Preneed Cemetery			Total			Preneed Funeral			Preneed Cemetery			Total
	(In thousands)									(In thousands)
Trust investments	$	1,667,134		$	1,583,172		$	3,250,306		$	1,668,691		$	1,584,701		$	3,253,392
Accrued trust operating payables and other	(1,934		)	(2,743		)	(4,677		)	(1,108		)	(1,698		)	(2,806		)
Deferred preneed funeral and cemetery receipts held in trust	$	1,665,200		$	1,580,429		$	3,245,629		$	1,667,583		$	1,583,003		$	3,250,586

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 March 31, 2014 and December 31, 2013 are detailed below.



	March 31, 2014			December 31, 2013
	(In thousands)
Cemetery perpetual care trust investments	$	1,342,589		$	1,347,622
Accrued trust operating payables and other	(2,228		)	(1,748		)
Care trusts’ corpus	$	1,340,361		$	1,345,874

Other Income (Expense), Net

The components of Other income (expense), net in our unaudited condensed consolidated statement of operations for the three months ended March 31, 2014 and 2013 are detailed below. See Notes 4, 5, and 6 for further discussion of the amounts related to the funeral, cemetery, and cemetery perpetual care trusts.



	Three Months Ended March 31, 2014
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net		Total
				(In thousands)
Realized gains	$	16,101		$	25,532		$	5,045		$	—	$	46,678
Realized losses	(1,474		)	(2,299		)	(337		)	—		(4,110		)
Impairment charges	(251		)	(339		)	(40		)	—		(630		)
Interest, dividend, and other ordinary income	5,574			2,495			9,586			—		17,655
Trust expenses and income taxes	(4,467		)	(4,815		)	(1,547		)	—		(10,829		)
Net trust investment income	15,483			20,574			12,707			—		48,764
Reclassification to deferred preneed funeral and cemetery receipts held in trust and care trusts’ corpus	(15,483		)	(20,574		)	(12,707		)	—		(48,764		)
Other income (expense), net	—			—			—			1,534		1,534
Total other income, net	$	—		$	—		$	—		$	1,534	$	1,534



	Three Months Ended March 31, 2013
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net			Total
				(In thousands)
Realized gains	$	11,371		$	16,576		$	3,782		$	—		$	31,729
Realized losses	(1,721		)	(2,170		)	(322		)	—			(4,213		)
Impairment charges	(200		)	(357		)	(63		)	—			(620		)
Interest, dividend, and other ordinary income	1,817			1,529			6,089			—			9,435
Trust expenses and income taxes	(2,381		)	(3,669		)	(575		)	—			(6,625		)
Net trust investment income	8,886			11,909			8,911			—			29,706
Reclassification to deferred preneed funeral and cemetery receipts held in trust and care trusts’ corpus	(8,886		)	(11,909		)	(8,911		)	—			(29,706		)
Other income (expense), net	—			—			—			(984		)	(984		)
Total other income, net	$	—		$	—		$	—		$	(984	)	$	(984	)