Notes to Consolidated Financial Statements

(5) Prearranged Funeral Services
 The following summary reflects prearranged funeral services sold, but not yet delivered, which are funded with trusts, escrow accounts and insurance, and related prearranged funeral trust fund and escrow account balances. The trust- and insurance-funded balances are not reflected in the accompanying consolidated financial statements. Amounts which represent the Company's voluntary deposits into escrow accounts in those jurisdictions where trust or escrow arrangements are neither statutorily nor contractually required aggregated $14,347 and $40,832 as of October 31, 1999 and 1998, respectively, and are classified as long-term investments. As of October 31, 1999, the voluntary escrow accounts that the Company intends to liquidate in fiscal year 2000 are classified as marketable securities. See Note 8 for further discussion.

Amounts deposited in the trust funds and escrow accounts and funded through insurance are available to the Company when the services are performed. Funds held in trust or escrow are invested, and earnings (including net realized capital gains) realized on irrevocable trust funds and escrow accounts are deferred until the underlying funeral service is delivered, in accordance with the Company's change in accounting method effective November 1, 1998. Under the Company's previous accounting method, earnings of $26,463 and $24,682 were included in funeral revenue for fiscal years 1998 and 1997, respectively.