Deferred Preneed Receipts Held in Trust and Care Trusts’ Corpus

Deferred preneed receipts held in trust

We consolidate the merchandise and service trusts associated with our preneed activities. Although the consolidation of the merchandise and service trusts is required by accounting standards, 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 receipts held in trust in our unaudited condensed Consolidated Balance Sheet at March 31, 2017 and December 31, 2016 are detailed below.



	March 31, 2017									December 31, 2016
	Preneed Funeral			Preneed Cemetery			Total			Preneed Funeral			Preneed Cemetery			Total
	(In thousands)
Trust investments	$	1,585,715		$	1,641,311		$	3,227,026		$	1,546,517		$	1,558,229		$	3,104,746
Accrued trust operating payables and other	(605		)	(401		)	(1,006		)	(589		)	(361		)	(950		)
Deferred preneed receipts held in trust	$	1,585,110		$	1,640,910		$	3,226,020		$	1,545,928		$	1,557,868		$	3,103,796

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, 2017 and December 31, 2016 are detailed below.



	March 31, 2017		December 31, 2016
	(In thousands)
Cemetery perpetual care trust investments	$	1,440,935	$	1,407,465
Accrued trust deferred taxes, operating payables, and other	1,330		778
Care trusts’ corpus	$	1,442,265	$	1,408,243

Other expense, net

The components of Other expense, net in our unaudited condensed Consolidated Statement of Operations for the three months ended March 31, 2017 and 2016 are detailed below. See Notes 3, 4, and 5 for further discussion of the amounts related to the funeral, cemetery, and cemetery perpetual care trusts.



	Three Months Ended March 31, 2017
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net			Total
				(In thousands)
Realized gains	$	11,561		$	40,029		$	843		$	—		$	52,433
Realized losses	(5,544		)	(14,261		)	(1,969		)	—			(21,774		)
Impairment charges	(4,267		)	(765		)	(7		)	—			(5,039		)
Interest, dividend, and other ordinary income	2,810			7,773			12,576			—			23,159
Trust expenses and income taxes	(4,109		)	(11,075		)	(5,170		)	—			(20,354		)
Net trust investment (loss) income	451			21,701			6,273			—			28,425
Reclassification to deferred preneed receipts held in trust and care trusts’ corpus	(451		)	(21,701		)	(6,273		)	—			(28,425		)
Other expense, net	—			—			—			(434		)	(434		)
Total other expense, net	$	—		$	—		$	—		$	(434	)	$	(434	)



	Three Months Ended March 31, 2016
	Funeral Trusts			Cemetery Trusts			Cemetery Perpetual Care Trusts			Other, Net			Total
				(In thousands)
Realized gains	$	6,824		$	6,246		$	1,494		$	—		$	14,564
Realized losses	(19,651		)	(22,853		)	(1,616		)	—			(44,120		)
Impairment charges	(1,118		)	(2,049		)	(115		)	—			(3,282		)
Interest, dividend, and other ordinary income	2,773			2,360			12,990			—			18,123
Trust expenses and income taxes	(4,442		)	(4,853		)	(5,757		)	—			(15,052		)
Net trust investment (loss) income	(15,614		)	(21,149		)	6,996			—			(29,767		)
Reclassification to deferred preneed receipts held in trust and care trusts’ corpus	15,614			21,149			(6,996		)	—			29,767
Other expense, net	—			—			—			(242		)	(242		)
Total other expense, net	$	—		$	—		$	—		$	(242	)	$	(242	)