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Preneed Activities (Notes)
 3 Months Ended
Mar. 31, 2019
Preneed Activities [Abstract]  
Preneed Activities
3. Preneed Activities
Preneed receivables, net and trust investments
The components of Preneed receivables, net and trust investments in our unaudited Condensed Consolidated Balance Sheet at March 31, 2019 and December 31, 2018 are as follows:
 
March 31, 2019
 
December 31, 2018
 
(In thousands)
Preneed funeral receivables
$
111,372

 
$
107,612

Preneed cemetery receivables
880,293

 
883,432

Preneed receivables from customers
991,665

 
991,044

Unearned finance charge
(44,699
)
 
(44,981
)
Allowance for cancellation
(49,102
)
 
(48,380
)
Preneed receivables, net
$
897,864

 
$
897,683

 
 
 
 
Trust investments, at market
$
4,909,135

 
$
4,585,720

Insurance-backed fixed income securities and other
265,406

 
265,787

Trust investments
5,174,541

 
4,851,507

Less: Cemetery perpetual care trust investments
(1,573,903
)
 
(1,477,798
)
Preneed trust investments
$
3,600,638

 
$
3,373,709

 
 
 
 
Preneed receivables, net and trust investments
$
4,498,502

 
$
4,271,392


The table below sets forth certain investment-related activities associated with our trusts:
 
 
Three Months Ended
 
 
March 31,
 
 
2019
 
2018
 
 
(In thousands)
Deposits
 
$
100,452

 
$
93,269

Withdrawals
 
$
107,356

 
$
106,769

Purchases of securities
 
$
446,761

 
$
599,651

Sales of securities
 
$
317,855

 
$
614,424

Realized gains (1)
 
$
43,525

 
$
58,306

Realized losses (1)
 
$
(32,631
)
 
$
(12,296
)

(1)
All realized gains and losses are recognized in Other income, net for our trust investments and are offset by a corresponding reclassification in Other income, net to Deferred receipts held in trust and Care trusts' corpus.

The costs and values associated with trust investments recorded at fair value at March 31, 2019 and December 31, 2018 are detailed below. Cost reflects the investment (net of redemptions) of control holders in the trusts. Fair value represents the value of the underlying securities held by the trusts.
 
March 31, 2019
 
Value Hierarchy Level
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Value
 
 
 
 
 
(In thousands)
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
U.S. Treasury
2
 
$
47,311

 
$
250

 
$
(291
)
 
$
47,270

Canadian government
2
 
45,738

 
73

 
(1,138
)
 
44,673

Corporate
2
 
10,713

 
5

 
(256
)
 
10,462

Residential mortgage-backed
2
 
3,127

 
6

 
(15
)
 
3,118

Asset-backed
2
 
135

 
2

 
(9
)
 
128

Equity securities:
 
 
 
 
 
 
 
 
 
Preferred stock
2
 
6,086

 
496

 
(114
)
 
6,468

Common stock:
 
 
 
 
 
 
 
 
 
United States
1
 
1,283,369

 
237,651

 
(67,561
)
 
1,453,459

Canada
1
 
36,092

 
9,614

 
(1,110
)
 
44,596

Other international
1
 
79,441

 
14,482

 
(1,984
)
 
91,939

Mutual funds:
 
 
 
 
 
 
 
 
 
Equity
1
 
815,033

 
21,692

 
(87,972
)
 
748,753

Fixed income
1
 
1,195,893

 
4,201

 
(45,751
)
 
1,154,343

Other
3
 
6,706

 
402

 
—

 
7,108

Trust investments, at fair value
 
 
3,529,644

 
288,874

 
(206,201
)
 
3,612,317

Commingled funds
 
 
 
 
 
 
 
 
 
Fixed income
 
 
419,253

 
2,721

 
(9,559
)
 
412,415

Equity
 
 
208,179

 
35,698

 
(305
)
 
243,572

Money market funds
 
 
375,874

 
—

 
—

 
375,874

Private equity
 
 
195,000

 
69,957

 
—

 
264,957

Trust investments, at net asset value
 
 
1,198,306

 
108,376

 
(9,864
)
 
1,296,818

Trust investments, at market
 
 
$
4,727,950

 
$
397,250

 
$
(216,065
)
 
$
4,909,135

 
December 31, 2018
 
Value Hierarchy Level
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Value
 
 
 
 
 
(In thousands)
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
U.S. Treasury
2
 
$
49,187

 
$
153

 
$
(448
)
 
$
48,892

Canadian government
2
 
56,343

 
23

 
(1,797
)
 
54,569

Corporate
2
 
19,869

 
13

 
(516
)
 
19,366

Residential mortgage-backed
2
 
3,611

 
10

 
(50
)
 
3,571

Asset-backed
2
 
142

 
2

 
(11
)
 
133

Equity securities:
 
 
 
 
 
 
 
 
 
Preferred stock
2
 
9,058

 
180

 
(412
)
 
8,826

Common stock:
 
 
 
 
 
 
 
 
 
United States
1
 
1,236,513

 
149,233

 
(138,141
)
 
1,247,605

Canada
1
 
34,821

 
9,082

 
(3,026
)
 
40,877

Other international
1
 
77,676

 
6,057

 
(10,275
)
 
73,458

Mutual funds:
 
 
 
 
 
 
 
 
 
Equity
1
 
760,887

 
7,104

 
(151,853
)
 
616,138

Fixed income
1
 
1,180,325

 
800

 
(89,179
)
 
1,091,946

Other
3
 
6,548

 
3,210

 
(3
)
 
9,755

Trust investments, at fair value
 
 
3,434,980

 
175,867

 
(395,711
)
 
3,215,136

Commingled funds
 
 
 
 
 
 
 
 
 
Fixed income
 
 
419,206

 
2,419

 
(18,981
)
 
402,644

Equity
 
 
205,789

 
19,567

 
(11,723
)
 
213,633

Money market funds
 
 
466,429

 
—

 
—

 
466,429

Private equity
 
 
215,618

 
72,897

 
(637
)
 
287,878

Trust investments, at net asset value
 
 
1,307,042

 
94,883

 
(31,341
)
 
1,370,584

Trust investments, at market
 
 
$
4,742,022

 
$
270,750

 
$
(427,052
)
 
$
4,585,720


As of March 31, 2019, our unfunded commitment for our private equity and other investments was $135.4 million which, if called, would be funded by the assets of the trusts.
The change in our market-based trust investments with significant unobservable inputs (Level 3) is as follows:
 
 
Three Months Ended
 
 
March 31,
 
 
2019
 
2018
 
 
(In thousands)
Fair value, beginning balance
 
$
9,755

 
$
9,067

Net unrealized losses included in Other income, net(1)
 
(1,142
)
 
(534
)
Sales
 
(1,505
)
 
—

Fair value, ending balance
 
$
7,108

 
$
8,533


(1)
All net unrealized (losses) gains recognized in Other income, net for our trust investments are offset by a corresponding reclassification in Other income, net to Deferred receipts held in trust and Care trusts' corpus.
Maturity dates of our fixed income securities range from 2019 to 2040. Maturities of fixed income securities (excluding mutual funds) at March 31, 2019 are estimated as follows:
 
Fair Value
 
(In thousands)
Due in one year or less
$
51,407

Due in one to five years
45,592

Due in five to ten years
8,540

Thereafter
112

Total estimated maturities of fixed income securities
$
105,651

Recognized trust fund income (realized and unrealized) related to these trust investments was $48.0 million and $44.9 million for the three months ended March 31, 2019 and 2018, respectively.
We have determined that the unrealized losses in our fixed income investments are considered temporary in nature, as the unrealized losses were due to temporary fluctuations in interest rates. We believe that none of the securities are other-than-temporarily impaired based on our analysis of the investments. Our analysis included a review of the portfolio holdings and discussions with the individual money managers as to the credit ratings and the severity and duration of the unrealized losses. Our fixed income investment unrealized losses, their associated values, and the duration of unrealized losses as of March 31, 2019 and December 31, 2018, respectively, are shown in the following tables:
 
March 31, 2019
 
In Loss Position
Less Than 12 Months
 
In Loss Position
Greater Than 12 Months
 
Total
 
Value
 
Unrealized
Losses
 
Value
 
Unrealized
Losses
 
Value
 
Unrealized
Losses
 
 
 
 
 
(In thousands)
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury
$
6,645

 
$
(188
)
 
$
10,015

 
$
(103
)
 
$
16,660

 
$
(291
)
Canadian government
—

 
—

 
17,772

 
(1,138
)
 
17,772

 
(1,138
)
Corporate
1,643

 
(3
)
 
7,262

 
(253
)
 
8,905

 
(256
)
Residential mortgage-backed
—

 
—

 
2,330

 
(15
)
 
2,330

 
(15
)
 Asset-backed
—

 
—

 
21

 
(9
)
 
21

 
(9
)
Total temporarily impaired fixed income securities
$
8,288

 
$
(191
)
 
$
37,400

 
$
(1,518
)
 
$
45,688

 
$
(1,709
)
 
December 31, 2018
 
In Loss Position
Less Than 12 Months
 
In Loss Position
Greater Than 12 Months
 
Total
 
Value
 
Unrealized
Losses
 
Value
 
Unrealized
Losses
 
Value
 
Unrealized
Losses
 
 
 
 
 
(In thousands)
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury
$
6,899

 
$
(226
)
 
$
16,374

 
$
(222
)
 
$
23,273

 
$
(448
)
Canadian government
2,254

 
(9
)
 
25,330

 
(1,788
)
 
27,584

 
(1,797
)
Corporate
11,579

 
(206
)
 
6,563

 
(310
)
 
18,142

 
(516
)
Residential mortgage-backed
351

 
(4
)
 
3,010

 
(46
)
 
3,361

 
(50
)
 Asset-backed
—

 
—

 
79

 
(11
)
 
79

 
(11
)
Total temporarily impaired fixed income securities
$
21,083

 
$
(445
)
 
$
51,356

 
$
(2,377
)
 
$
72,439

 
$
(2,822
)