Notes to Consolidated Financial Statements

(6) Cemetery Trust Funds and Escrow Accounts
 The following summary reflects the Company's merchandise trust fund and escrow account balances, as well as merchandise sold, but undelivered, at current cost. Merchandise sold, but undelivered, is reflected at current cost in the accompanying consolidated balance sheets net of the related merchandise trust fund and escrow account balances and accumulated earnings, except for $24,990 classified as long-term investments as of October 31, 1998. These amounts represent the Company's voluntary deposits into escrow accounts in those jurisdictions where trust or escrow arrangements are neither statutorily nor contractually required. As of October 31, 1999, there were no merchandise trust fund and escrow account balances classified as long-term investments. As of October 31, 1999, these balances were classified as marketable securities as the Company began liquidation of these accounts in early fiscal year 2000. The Company anticipates liquidating the remainder of the marketable securities by October 31, 2000. See Note 8 for further discussion.

Amounts deposited in the trust funds and escrow accounts are invested, and the revenue on the funds (including net realized capital gains) of $17,371, $13,157, and $12,237 is reflected in cemetery revenue for 1999, 1998 and 1997, respectively. Amounts deposited in merchandise trust funds and escrow accounts that are invested in debt securities as of October 31, 1999 totaled $54,419 and are scheduled to mature as follows: $915 in less than one year; $26,489 in one through five years; $26,393 in five through ten years; and $622 in more than ten years.

 

The following summary reflects the Company's perpetual care trust fund and escrow account balances. Since principal cannot be withdrawn, these balances are not reflected in the accompanying financial statements, except for $2,465 and $2,192, classified as long-term investments as of October 31, 1999 and 1998, respectively, which represent the Company's voluntary deposits into escrow accounts in those jurisdictions where trust or escrow arrangements are neither statutorily nor contractually required. Funds held in trust or escrow are invested, and the earnings withdrawn from the trust funds and escrow accounts are used for the maintenance of cemetery grounds. For the years ended October 31, 1999, 1998 and 1997, such withdrawals, included in cemetery revenue, totaled $14,470, $12,615, and $12,497, respectively.