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Preneed Activities Level 1 (Notes)
 12 Months Ended
Dec. 31, 2021
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,
20212020
 (In thousands)
Preneed receivables, net$1,243,781 $1,069,965 
Trust investments, at fair value6,536,851 5,851,188 
Insurance-backed fixed income securities and other231,589 245,056 
Trust investments6,768,440 6,096,244 
Less: Cemetery perpetual care trust investments(1,996,898)(1,820,489)
Preneed trust investments4,771,542 4,275,755 
Preneed receivables, net and trust investments$6,015,323 $5,345,720 

Preneed receivables, net comprised the following:
December 31, 2021
FuneralCemeteryTotal
 (In thousands)
Preneed receivables$162,183 $1,125,539 $1,287,722 
Unearned finance charges(12,038)(11,176)(23,214)
Preneed receivables, at amortized cost$150,145 $1,114,363 $1,264,508 
Reserve for credit losses(12,722)(8,005)(20,727)
Preneed receivables, net$137,423 $1,106,358 $1,243,781 
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 
At December 31, 2021, the amortized cost basis of our preneed receivables by year of origination was as follows:
20212020201920182017PriorTotal
 (In thousands)
Preneed receivables, at amortized cost:
Funeral$70,006 $36,943 $21,619 $7,178 $3,564 $10,835 $150,145 
Cemetery513,100 302,038 149,543 85,550 41,640 22,492 1,114,363 
Total preneed receivables, at amortized cost$583,106 $338,981 $171,162 $92,728 $45,204 $33,327 $1,264,508 

At December 31, 2021, 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$3,806 $2,961 $1,892 $18,050 $26,709 $123,436 $150,145 
Cemetery33,383 23,204 8,690 1,429 66,706 1,047,657 1,114,363 
Total preneed receivables, at amortized cost$37,189 $26,165 $10,582 $19,479 $93,415 $1,171,093 $1,264,508 

The following table summarizes the activity for the reserve for credit losses on preneed receivables for the twelve months ended December 31, 2021.
January 1, 2021Provision for Expected Credit LossesAcquisitions (Divestitures), NetWrite OffsEffect of Foreign CurrencyDecember 31, 2021
 (In thousands)
Funeral$(10,940)$(4,853)$— $3,071 $— $(12,722)
Cemetery(8,264)(233)— 495 (3)(8,005)
Total reserve for credit losses on preneed receivables$(19,204)$(5,086)$— $3,566 $(3)$(20,727)
The table below sets forth certain investment-related activities associated with our trusts:
Years Ended December 31,
202120202019
 (In thousands)
Deposits$519,023 $429,307 $421,460 
Withdrawals$477,443 $424,986 $435,344 
Purchases of securities$1,823,267 $2,147,935 $1,596,698 
Sales of securities$1,744,618 $1,994,684 $1,495,733 
Realized gains from sales of securities(1)
$584,863 $418,851 $241,661 
Realized losses from sales of securities(1)
$(91,715)$(262,974)$(121,272)
(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,
202120202019
 (In thousands)
Beginning balance - Preneed receivables, net and trust investments
$5,345,720 $4,789,562 $4,271,392 
Cumulative effect of accounting changes— 26,394 — 
Net preneed contract sales1,870,972 1,494,557 1,372,705 
Cash receipts from customers, net of refunds(1,550,735)(1,279,295)(1,280,468)
Deposits to trust452,554 373,663 372,644 
Acquisitions of businesses, net4,912 19,299 11,751 
Net undistributed investment earnings (1)
448,469 407,770 489,577 
Maturities and distributed earnings(464,247)(430,608)(442,507)
Change in cancellation allowance(1,523)(4,468)(2,006)
Change in amounts due on unfulfilled performance obligations(87,207)(55,269)(10,223)
Effect of foreign currency and other(3,592)4,115 6,697 
Ending balance - Preneed receivables, net and trust investments
$6,015,323 $5,345,720 $4,789,562 
(1)    Includes both realized and unrealized investment earnings.
The cost and fair values associated with trust investments recorded at fair value at December 31, 2021 and 2020 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, 2021
Fair Value Hierarchy LevelCostUnrealized
Gains		Unrealized
Losses		Value
  (In thousands) 
Fixed income securities:    
U.S. Treasury2$51,002 $795 $(283)$51,514 
Canadian government229,881 28 — 29,909 
Corporate2170 6 (2)174 
Residential mortgage-backed21,407 58 (15)1,450 
Asset-backed2274 2 (10)266 
Equity securities: 
Preferred stock24,843 4 (1,024)3,823 
Common stock: 
United States11,648,785 624,349 (56,092)2,217,042 
Canada134,787 19,617 (898)53,506 
Other international1129,486 42,171 (9,819)161,838 
Mutual funds: 
Equity1875,828 140,893 (10,116)1,006,605 
Fixed income11,025,327 12,560 (18,675)1,019,212 
Other3187 1 — 188 
Trust investments, at fair value3,801,977 840,484 (96,934)4,545,527 
Commingled funds
Fixed income662,125 115,939 (3,171)774,893 
Equity230,926 161,125 (114)391,937 
Money market funds408,762 — — 408,762 
Alternative investments292,888 128,197 (5,353)415,732 
Trust investments, at net asset value1,594,701 405,261 (8,638)1,991,324 
Trust investments, at market$5,396,678 $1,245,745 $(105,572)$6,536,851 

As of December 31, 2021, our unfunded commitment for our private equity investments was $163.1 million which, if called, would be funded by the assets of 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 
Alternative investments217,953 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 
The change in our market-based trust investments with significant unobservable inputs (Level 3) is as follows:
Years Ended December 31,
202120202019
(In thousands)
Fair value, beginning balance at January 1$190 $8,218 $9,755 
Net realized and unrealized (losses) included in Other income, net(1)
(2)(1,215)(761)
Purchases— — 1,006 
Sales— (2)(1,782)
Transfers— (6,811)— 
Fair value, ending balance at December 31$188 $190 $8,218 
(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 2022 to 2040. Maturities of fixed income securities (excluding mutual funds) at December 31, 2021 are estimated as follows:
 Fair Value
 (In thousands)
Due in one year or less$53,144 
Due in one to five years23,484 
Due in five to ten years6,445 
Thereafter240 
Total estimated maturities of fixed income securities$83,313 

Recognized trust fund income (realized and unrealized) related to our preneed trust investments was $179.7 million, $129.1 million, and $119.0 million for the years ended December 31, 2021, 2020, and 2019, respectively. Recognized trust fund income (realized and unrealized) related to our cemetery perpetual care trust investments was $96.1 million, $77.8 million, and $77.5 million for the years ended December 31, 2021, 2020, and 2019, respectively.
Deferred Revenue, Net
At December 31, 2021 and 2020, 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,
20212020
 (In thousands)
Deferred revenue$2,259,364 $2,127,878 
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts (726,615)(638,969)
Deferred revenue, net$1,532,749 $1,488,909 
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,
202120202019
 (In thousands)
Beginning balance — Deferred revenue, net and Deferred receipts held in trust
$5,761,291 $5,306,479 $4,790,552 
Net preneed contract sales1,314,001 1,089,060 984,575 
Acquisitions (dispositions) of businesses, net4,707 19,664 (12,741)
Net investment gains (losses)(1)
443,088 402,048 484,577 
Recognized revenue from backlog(2)
(471,160)(412,127)(368,908)
Recognized revenue from current period sales(669,025)(598,768)(573,804)
Change in amounts due on unfulfilled performance obligations(87,207)(55,087)(10,223)
Change in cancellation reserve(459)1,070 1,066 
Effect of foreign currency and other4,005 8,952 11,385 
Ending balance — Deferred revenue, net and Deferred receipts held in trust
$6,299,241 $5,761,291 $5,306,479 
(1)Includes both realized and unrealized investment gains (losses).
(2)Includes current year trust fund income through the date of performance.