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Preneed Activities (Notes)
 9 Months Ended
Sep. 30, 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 September 30, 2019 and December 31, 2018 are as follows:
 
September 30, 2019
 
December 31, 2018
 
(In thousands)
Preneed funeral receivables
$
126,139

 
$
107,612

Preneed cemetery receivables
889,004

 
883,432

Preneed receivables from customers
1,015,143

 
991,044

Unearned finance charge
(53,450
)
 
(44,981
)
Allowance for cancellation
(51,550
)
 
(48,380
)
Preneed receivables, net
$
910,143

 
$
897,683

 
 
 
 
Trust investments, at market
$
5,019,631

 
$
4,585,720

Insurance-backed fixed income securities and other
254,641

 
265,787

Trust investments
5,274,272

 
4,851,507

Less: Cemetery perpetual care trust investments
(1,615,779
)
 
(1,477,798
)
Preneed trust investments
$
3,658,493

 
$
3,373,709

 
 
 
 
Preneed receivables, net and trust investments
$
4,568,636

 
$
4,271,392


The table below sets forth certain investment-related activities associated with our trusts:
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Deposits
$
104,964

 
$
96,539

 
$
318,321

 
$
296,651

Withdrawals
$
100,194

 
$
97,525

 
$
324,230

 
$
318,818

Purchases of securities
$
545,926

 
$
265,125

 
$
1,236,839

 
$
1,273,683

Sales of securities
$
546,172

 
$
295,983

 
$
1,109,589

 
$
1,331,981

Realized gains (1)
$
71,531

 
$
70,095

 
$
169,812

 
$
216,241

Realized losses (1)
$
(39,176
)
 
$
(20,358
)
 
$
(88,058
)
 
$
(50,210
)

(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 September 30, 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.

 
September 30, 2019
 
Value Hierarchy Level
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Value
 
 
 
 
 
(In thousands)
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
U.S. Treasury
2
 
$
49,468

 
$
850

 
$
(124
)
 
$
50,194

Canadian government
2
 
41,047

 
116

 
(745
)
 
40,418

Corporate
2
 
10,352

 
59

 
(155
)
 
10,256

Residential mortgage-backed
2
 
3,284

 
72

 
(1
)
 
3,355

Asset-backed
2
 
134

 
4

 
(3
)
 
135

Equity securities:
 
 
 
 
 
 
 
 
 
Preferred stock
2
 
6,191

 
472

 
(125
)
 
6,538

Common stock:
 
 
 
 
 
 
 
 
 
United States
1
 
1,349,577

 
240,605

 
(69,044
)
 
1,521,138

Canada
1
 
39,739

 
11,379

 
(2,866
)
 
48,252

Other international
1
 
76,759

 
8,281

 
(3,921
)
 
81,119

Mutual funds:
 
 
 
 
 
 
 
 
 
Equity
1
 
769,779

 
13,971

 
(88,424
)
 
695,326

Fixed income
1
 
1,230,610

 
18,331

 
(39,873
)
 
1,209,068

Other
3
 
6,569

 
757

 
—

 
7,326

Trust investments, at fair value
 
 
3,583,509

 
294,897

 
(205,281
)
 
3,673,125

Commingled funds
 
 
 
 
 
 
 
 
 
Fixed income
 
 
445,011

 
8,675

 
(928
)
 
452,758

Equity
 
 
249,885

 
25,206

 
(38
)
 
275,053

Money market funds
 
 
352,018

 
—

 
—

 
352,018

Private equity
 
 
187,815

 
79,215

 
(353
)
 
266,677

Trust investments, at net asset value
 
 
1,234,729

 
113,096

 
(1,319
)
 
1,346,506

Trust investments, at market
 
 
$
4,818,238

 
$
407,993

 
$
(206,600
)
 
$
5,019,631

 
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 September 30, 2019, our unfunded commitment for our private equity and other investments was $131.0 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
 
Nine Months Ended
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Fair value, beginning balance
$
6,588

 
$
20,194

 
$
9,755

 
$
9,067

Net unrealized (losses) gains included in Other income, net(1)
(54
)
 
1,020

 
(1,518
)
 
750

Purchases
850

 
36

 
855

 
43

Sales
(58
)
 
(9
)
 
(1,766
)
 
(9
)
Acquisitions
—

 
(2,287
)
 
—

 
9,103

Fair value, ending balance
$
7,326

 
$
18,954

 
$
7,326

 
$
18,954


(1)
All net unrealized gains (losses) 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 September 30, 2019 are estimated as follows:
 
Fair Value
 
(In thousands)
Due in one year or less
$
47,329

Due in one to five years
47,350

Due in five to ten years
9,573

Thereafter
106

Total estimated maturities of fixed income securities
$
104,358

Recognized trust fund income (realized and unrealized) related to these trust investments was $49.0 million and $50.2 million for the three months ended September 30, 2019 and 2018, respectively. Recognized trust fund income (realized and unrealized) related to these trust investments was $144.1 million and $147.3 million for the nine months ended September 30, 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 September 30, 2019 and December 31, 2018, respectively, are shown in the following tables:
 
September 30, 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
$
2,249

 
$
(14
)
 
$
2,664

 
$
(110
)
 
$
4,913

 
$
(124
)
Canadian government
—

 
—

 
12,349

 
(745
)
 
12,349

 
(745
)
Corporate
814

 
(4
)
 
4,763

 
(151
)
 
5,577

 
(155
)
Residential mortgage-backed
—

 
—

 
50

 
(1
)
 
50

 
(1
)
 Asset-backed
—

 
—

 
28

 
(3
)
 
28

 
(3
)
Total temporarily impaired fixed income securities
$
3,063

 
$
(18
)
 
$
19,854

 
$
(1,010
)
 
$
22,917

 
$
(1,028
)
 
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
)