Credit Risk and Fair Value of Financial Instruments (Notes)

9 Months Ended

Sep. 30, 2019

Credit Risk and Fair Value of Financial Instruments [Abstract]

Credit Risk and Fair Value of Financial Instruments

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 September 30, 2019 and December 31, 2018 was as follows:

	September 30, 2019		December 31, 2018
	(In thousands)
4.5% Senior Notes due November 2020	$	—	$	198,930
8.0% Senior Notes due November 2021	167,250		160,800
5.375% Senior Notes due January 2022	—		428,188
5.375% Senior Notes due May 2024	874,438		851,275
7.5% Senior Notes due April 2027	188,951		214,940
4.625% Senior Notes due December 2027	575,437		517,077
5.125% Senior Notes due June 2029	805,613		—
Term Loan through December 2022	—		629,579
Term Loan through May 2024	641,875		—

	September 30, 2019		December 31, 2018
	(In thousands)
Bank Credit Facility due December 2022	—		387,061
Bank Credit Facility due May 2024	235,000		—
Mortgage notes and other debt, maturities through 2050	44,726		4,076
Total fair value of debt instruments	$	3,533,290	$	3,391,926

The fair value of our long-term, fixed-rate loans was 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 notes and other debt are classified within Level 3 of the fair value measurements hierarchy. The fair value of these instruments has 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.