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Preneed Activities Level 1 (Notes)
 12 Months Ended
Dec. 31, 2020
Preneed Activities [Abstract]  
Preneed Activities Text Block
3. Preneed Activities
Preneed receivables, net and trust investments
The components of Preneed receivables, net and trust investments in our Consolidated Balance Sheet were as follows:
Years Ended December 31,
20202019
 (In thousands)
Preneed receivables, net$1,069,965 $947,232 
Trust investments, at fair value5,851,188 5,258,319 
Insurance-backed fixed income securities and other245,056 265,160 
Trust investments6,096,244 5,523,479 
Less: Cemetery perpetual care trust investments(1,820,489)(1,681,149)
Preneed trust investments4,275,755 3,842,330 
Preneed receivables, net and trust investments$5,345,720 $4,789,562 

Preneed receivables, net comprised the following:
December 31, 2020
FuneralCemeteryTotal
 (In thousands)
Preneed receivables$143,896 $979,259 $1,123,155 
Unearned finance charges(14,018)$(19,968)$(33,986)
Preneed receivables, at amortized cost$129,878 $959,291 $1,089,169 
Reserve for credit losses(10,940)$(8,264)$(19,204)
Preneed receivables, net$118,938 $951,027 $1,069,965 

December 31, 2019
FuneralCemeteryTotal
 (In thousands)
Preneed receivables$130,971 $907,973 $1,038,944 
Unearned finance charges(16,328)(34,242)(50,570)
Preneed receivables, at amortized cost114,643 873,731 988,374 
Allowance for cancellation(1,452)(39,690)(41,142)
Preneed receivables, net$113,191 $834,041 $947,232 
At December 31, 2020, the amortized cost basis of our preneed receivables by year of origination was as follows:
20202019201820172016PriorTotal
 (In thousands)
Preneed receivables, at amortized cost:
Funeral$60,249 $37,497 $13,276 $6,353 $3,039 $9,464 $129,878 
Cemetery426,260 232,622 149,693 87,912 40,857 21,947 959,291 
Total preneed receivables, at amortized cost$486,509 $270,119 $162,969 $94,265 $43,896 $31,411 $1,089,169 

At December 31, 2020, the payment status of our preneed receivables was as follows:
Past Due
<30 Days30-90 Days90-180 Days>180 DaysTotalCurrentTotal
 (In thousands)
Preneed receivables, at amortized cost:
Funeral$3,593 $2,503 $1,533 $15,321 $22,950 $106,928 $129,878 
Cemetery28,288 20,821 5,233 989 55,331 903,960 959,291 
Total preneed receivables, at amortized cost$31,881 $23,324 $6,766 $16,310 $78,281 $1,010,888 $1,089,169 

The following table summarizes the activity for the reserve for credit losses on preneed receivables for the twelve months ended December 31, 2020.

January 1, 2020Provision for Expected Credit LossesAcquisitions (Divestitures), NetWrite OffsEffect of Foreign CurrencyDecember 31, 2020
 (In thousands)
Funeral$(8,057)$(5,652)$9 $2,750 $10 $(10,940)
Cemetery(6,700)(2,087)— 520 3 (8,264)
Total reserve for credit losses on preneed receivables$(14,757)$(7,739)$9 $3,270 $13 $(19,204)

The table below sets forth certain investment-related activities associated with our trusts:
Years Ended December 31,
202020192018
 (In thousands)
Deposits$429,307 $421,460 $393,523 
Withdrawals$424,986 $435,344 $432,822 
Purchases of securities$2,147,935 $1,596,698 $1,540,093 
Sales of securities$1,994,684 $1,495,733 $1,564,968 
Realized gains from sales of securities(1)
$418,851 $241,661 $305,595 
Realized losses from sales of securities(1)
$(262,974)$(121,272)$(77,996)
(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 activity in Preneed receivables, net and trust investments was as follows:
Years Ended December 31,
202020192018
 (In thousands)
Beginning balance - Preneed receivables, net and trust investments
$4,789,562 $4,271,392 $4,778,842 
Cumulative effect of accounting changes26,394 — — 
Net preneed contract sales1,494,557 1,372,705 1,325,134 
Cash receipts from customers, net of refunds(1,279,295)(1,280,468)(1,185,717)
Deposits to trust373,663 372,644 347,601 
Acquisitions of businesses, net19,299 11,751 134,729 
Net undistributed investment earnings (losses) (1)
407,770 489,577 (191,611)
Maturities and distributed earnings(430,608)(442,507)(433,036)
Change in cancellation allowance(4,468)(2,006)62,131 
Change in amounts due on unfulfilled performance obligations(55,269)(10,223)(546,554)
Effect of foreign currency and other4,115 6,697 (20,127)
Ending balance - Preneed receivables, net and trust investments
$5,345,720 $4,789,562 $4,271,392 
(1)    Includes both realized and unrealized investment earnings (losses).
The cost and fair values associated with trust investments recorded at fair value at December 31, 2020 and 2019 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.
 December 31, 2020
Fair Value Hierarchy LevelCostUnrealized
Gains		Unrealized
Losses		Value
  (In thousands) 
Fixed income securities:    
U.S. Treasury2$44,907 $1,566 $(272)$46,201 
Canadian government230,210 51 (157)30,104 
Corporate21,669 14 (8)1,675 
Residential mortgage-backed22,438 131 — 2,569 
Asset-backed2174 3 (5)172 
Equity securities: 
Preferred stock2358 — (24)334 
Common stock: 
United States11,500,125 503,757 (54,748)1,949,134 
Canada135,016 10,915 (1,823)44,108 
Other international1110,775 39,837 (1,831)148,781 
Mutual funds: 
Equity1821,406 95,155 (10,437)906,124 
Fixed income11,022,409 35,872 (19,298)1,038,983 
Other3188 2 — 190 
Trust investments, at fair value3,569,675 687,303 (88,603)4,168,375 
Commingled funds
Fixed income657,219 37,474 (173)694,520 
Equity283,329 97,704 — 381,033 
Money market funds330,745 — — 330,745 
Private equity217,953 68,846 (10,284)276,515 
Trust investments, at net asset value1,489,246 204,024 (10,457)1,682,813 
Trust investments, at market$5,058,921 $891,327 $(99,060)$5,851,188 

As of December 31, 2020, our unfunded commitment for our private equity investments was $228.0 million which, if called, would be funded by the assets of the trusts.
 December 31, 2019
Fair Value Hierarchy LevelCostUnrealized
Gains		Unrealized
Losses		Value
  (In thousands) 
Fixed income securities:    
U.S. Treasury2$49,728 $752 $(130)$50,350 
Canadian government241,093 76 (850)40,319 
Corporate29,694 28 (172)9,550 
Residential mortgage-backed23,210 59 (1)3,268 
Asset-backed2129 3 (4)128 
Equity securities: 
Preferred stock26,338 804 (115)7,027 
Common stock: 
United States11,349,828 303,766 (36,507)1,617,087 
Canada143,866 12,369 (2,075)54,160 
Other international195,257 18,227 (522)112,962 
Mutual funds: 
Equity1746,581 31,511 (54,020)724,072 
Fixed income11,247,930 16,424 (32,587)1,231,767 
Other37,034 1,184 — 8,218 
Trust investments, at fair value3,600,688 385,203 (126,983)3,858,908 
Commingled funds
Fixed income444,744 5,077 (1,731)448,090 
Equity249,980 47,631 — 297,611 
Money market funds397,461 — — 397,461 
Private equity176,388 80,283 (422)256,249 
Trust investments, at net asset value1,268,573 132,991 (2,153)1,399,411 
Trust investments, at market$4,869,261 $518,194 $(129,136)$5,258,319 
The change in our market-based trust investments with significant unobservable inputs (Level 3) is as follows:
Years Ended December 31,
202020192018
(In thousands)
Fair value, beginning balance at January 1$8,218 $9,755 $9,067 
Net realized and unrealized (losses) included in Other income, net(1)
(1,215)(761)(697)
Purchases— 1,006 66 
Sales(2)(1,782)(26)
Acquisitions, net— — 1,345 
Transfers(6,811)— — 
Fair value, ending balance at December 31$190 $8,218 $9,755 
(1)All net realized and unrealized (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 2021 to 2040. Maturities of fixed income securities (excluding mutual funds) at December 31, 2020 are estimated as follows:
 Fair Value
 (In thousands)
Due in one year or less$47,203 
Due in one to five years25,067 
Due in five to ten years8,311 
Thereafter140 
Total estimated maturities of fixed income securities$80,721 

Recognized trust fund income (realized and unrealized) related to our preneed trust investments was $129.1 million, $119.0 million, and $121.7 million for the years ended December 31, 2020, 2019, and 2018, respectively. Recognized trust fund income (realized and unrealized) related to our cemetery perpetual care trust investments was $77.8 million, $77.5 million, and $74.7 million for the years ended December 31, 2020, 2019, and 2018, respectively.
Deferred revenue, net
At December 31, 2020 and 2019, Deferred revenue, net represents future revenue, including distributed trust investment earnings associated with unperformed trust-funded preneed contracts that are not held in trust accounts. Future revenue and net trust investment earnings that are held in trust accounts are included in Deferred receipts held in trust.
The components of Deferred revenue, net in our Consolidated Balance Sheet were as follows:
Years Ended December 31,
20202019
 (In thousands)
Deferred revenue$2,127,878 $2,046,000 
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts (638,969)(578,897)
Deferred revenue, net$1,488,909 $1,467,103 
The following table summarizes the activity for our contract liabilities, which are reflected in Deferred revenue, net and Deferred receipts held in trust:
Years Ended December 31,
202020192018
 (In thousands)
Beginning balance — Deferred revenue, net and Deferred receipts held in trust
$5,306,479 $4,790,552 $5,265,206 
Cumulative effect of accounting changes— — 37,991 
Net preneed contract sales1,089,060 984,575 977,378 
(Dispositions) acquisitions of businesses, net19,664 (12,741)159,560 
Net investment gains (losses)(1)
402,048 484,577 (195,051)
Recognized revenue from backlog (2)
(412,127)(368,908)(381,041)
Recognized revenue from current period sales(598,768)(573,804)(572,428)
Change in amounts due on unfulfilled performance obligations(55,087)(10,223)(546,554)
Change in cancellation reserve1,070 1,066 65,817 
Effect of foreign currency and other8,952 11,385 (20,326)
Ending balance — Deferred revenue, net and Deferred receipts held in trust
$5,761,291 $5,306,479 $4,790,552 
(1)Includes both realized and unrealized investment gains (losses).
(2)Includes current year trust fund income through the date of performance.