Credit Risk and Fair Value of Financial Instruments

Fair Value Estimates

The fair value estimates of the following financial instruments have been determined using available market information and appropriate valuation methodologies. The carrying values of cash and cash equivalents, trade receivables, and trade payables approximate the fair values of those instruments due to the short-term nature of the instruments. The fair values of receivables on preneed funeral and cemetery contracts are impracticable to estimate because of the lack of a trading market and the diverse number of individual contracts with varying terms.

The fair value of our debt instruments at September 30, 2014 and December 31, 2013 was as follows:



	September 30, 2014		December 31, 2013
	(In thousands)
3.125% Senior Convertible Notes due July 2014	—		$	106,939
6.75% Senior Notes due April 2015	—		144,653
6.75% Senior Notes due April 2016	209,466		214,904
3.375% Senior Convertible Notes due July 2016	160		60,487
7.0% Senior Notes due June 2017	321,550		333,259
7.625% Senior Notes due October 2018	283,125		288,875
6.5% Senior Notes due April 2019	—		210,000
7.0% Senior Notes due May 2019	—		270,000
4.5% Senior Notes due November 2020	201,250		192,610
8.0% Senior Notes due November 2021	172,913		173,625
5.375% Senior Notes due January 2022	427,210		431,588
5.375% Senior Notes due May 2024	551,485		—
7.5% Senior Notes due April 2027	220,750		215,750
Term Loan due July 2018	377,500		600,000
Bank credit facility due July 2018	235,000		30,000
Mortgage notes and other debt, maturities through 2050	4,221		4,752
Total fair value of debt instruments	$	3,004,630	$	3,277,442

The fair values of our long-term, fixed rate loans were estimated using market prices for those loans, and therefore they are classified within Level 1 of the Fair Value Measurements hierarchy as required by the FVM&D Topic of the ASC. The bank credit agreement and the mortgage and other debt are classified within Level 3 of the Fair Value Measurements hierarchy. The fair values of these instruments have been estimated using discounted cash flow analysis based on our incremental borrowing rate for similar borrowing arrangements. A significant increase (decrease) in the inputs results in a directionally opposite change in the fair value of the instruments.