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 value of receivables on preneed 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 June 30, 2016 and December 31, 2015 was as follows:



	June 30, 2016		December 31, 2015
	(In thousands)
7.0% Senior Notes due June 2017	$	—	$	314,618
7.625% Senior Notes due October 2018	278,750		279,375
4.5% Senior Notes due November 2020	203,500		201,500
8.0% Senior Notes due November 2021	176,718		176,438
5.375% Senior Notes due January 2022	438,983		445,188
5.375% Senior Notes due May 2024	896,214		884,094
7.5% Senior Notes due April 2027	231,000		216,500
Term Loan due March 2021	691,250		—
Bank Credit Facility due March 2021	250,000		—
Term Loan due July 2018	—		310,000
Bank Credit Facility due July 2018	—		270,000
Mortgage notes and other debt, maturities through 2050	3,953		4,047
Total fair value of debt instruments	$	3,170,368	$	3,101,760

The fair value of our long-term, fixed-rate loans were estimated using market prices for those loans, and therefore they are classified within Level 2 of the fair value measurements hierarchy. The Term Loan, Bank Credit Facility agreement and the mortgage and other debt are classified within Level 3 of the fair value measurements hierarchy. The fair value of these instruments have been estimated using a discounted cash flow analysis based on our incremental borrowing rate for similar borrowing arrangements. An increase (decrease) in the inputs results in a directionally opposite change in the fair value of the instruments.