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 September 30, 2014 and December 31, 2013 are detailed below.



	September 30, 2014									December 31, 2013
	Preneed Funeral			Preneed Cemetery			Total			Preneed Funeral			Preneed Cemetery			Total
	(In thousands)
Trust investments	$	1,664,248		$	1,577,479		$	3,241,727		$	1,683,988		$	1,564,523		$	3,248,511
Accrued trust operating payables and other	(3,545		)	(4,108		)	(7,653		)	(1,108		)	(1,698		)	(2,806		)
Deferred preneed funeral and cemetery receipts held in trust	$	1,660,703		$	1,573,371		$	3,234,074		$	1,682,880		$	1,562,825		$	3,245,705

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 September 30, 2014 and December 31, 2013 are detailed below.



	September 30, 2014			December 31, 2013
	(In thousands)
Cemetery perpetual care trust investments	$	1,381,549		$	1,339,842
Accrued trust operating payables and other	(1,453		)	(1,661		)
Care trusts’ corpus	$	1,380,096		$	1,338,181

Other (Expense) Income, Net

The components of Other (expense) income, net in our unaudited condensed consolidated statement of operations for the three and nine months ended September 30, 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 September 30, 2014
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net			Total
				(In thousands)
Realized gains	$	18,935		$	40,635		$	7,034		$	—		$	66,604
Realized losses	(2,094		)	(4,439		)	(935		)	—			(7,468		)
Impairment charges	(41,244		)	(59,311		)	(8,025		)	—			(108,580		)
Interest, dividend, and other ordinary income	1,849			2,681			5,494			—			10,024
Trust expenses and income taxes	(6,748		)	(6,541		)	(631		)	—			(13,920		)
Net trust investment income	(29,302		)	(26,975		)	2,937			—			(53,340		)
Reclassification to deferred preneed funeral and cemetery receipts held in trust and care trusts’ corpus	29,302			26,975			(2,937		)	—			53,340
Other (expense) income, net	—			—			—			(9		)	(9		)
Total other (expense) income, net	$	—		$	—		$	—		$	(9	)	$	(9	)



	Nine Months Ended September 30, 2014
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net		Total
				(In thousands)
Realized gains	$	50,947		$	86,822		$	21,903		$	—	$	159,672
Realized losses	(6,233		)	(10,564		)	(1,599		)	—		(18,396		)
Impairment charges	(41,614		)	(59,829		)	(8,072		)	—		(109,515		)
Interest, dividend, and other ordinary income	15,323			10,157			27,465			—		52,945
Trust expenses and income taxes	(16,193		)	(15,733		)	(4,305		)	—		(36,231		)
Net trust investment income	2,230			10,853			35,392			—		48,475
Reclassification to deferred preneed funeral and cemetery receipts held in trust and care trusts’ corpus	(2,230		)	(10,853		)	(35,392		)	—		(48,475		)
Other (expense) income, net	—			—			—			1,577		1,577
Total other (expense) income, net	$	—		$	—		$	—		$	1,577	$	1,577



	Three Months Ended September 30, 2013
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net		Total
				(In thousands)
Realized gains	$	12,953		$	19,965		$	4,871		$	—	$	37,789
Realized losses	(2,212		)	(3,454		)	(966		)	—		(6,632		)
Impairment charges	(157		)	(218		)	—			—		(375		)
Interest, dividend, and other ordinary income	2,470			3,171			5,372			—		11,013
Trust expenses and income taxes	(2,705		)	(3,512		)	(273		)	—		(6,490		)
Net trust investment income	10,349			15,952			9,004			—		35,305
Reclassification to deferred preneed funeral and cemetery receipts held in trust and care trusts’ corpus	(10,349		)	(15,952		)	(9,004		)	—		(35,305		)
Other (expense) income, net	—			—			—			667		667
Total other (expense) income, net	$	—		$	—		$	—		$	667	$	667



	Nine Months Ended September 30, 2013
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net			Total
				(In thousands)
Realized gains	$	41,654		$	66,284		$	13,772		$	—		$	121,710
Realized losses	(8,378		)	(12,509		)	(1,728		)	—			(22,615		)
Impairment charges	(803		)	(1,515		)	(189		)	—			(2,507		)
Interest, dividend, and other ordinary income	18,493			13,615			19,245			—			51,353
Trust expenses and income taxes	(7,743		)	(10,268		)	(1,857		)	—			(19,868		)
Net trust investment income	43,223			55,607			29,243			—			128,073
Reclassification to deferred preneed funeral and cemetery receipts held in trust and care trusts’ corpus	(43,223		)	(55,607		)	(29,243		)	—			(128,073		)
Other (expense) income, net	—			—			—			(1,013		)	(1,013		)
Total other (expense) income, net	$	—		$	—		$	—		$	(1,013	)	$	(1,013	)