Notes to Consolidated Financial Statements (Dollars in thousands, except per share amounts.)

(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 $40,832 and $34,599 as of October 31, 1998 and 1997, respectively, and are classified as long-term investments. 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 in excess of the amount deferred to offset the estimated effects of inflation on the future cost of performing prearranged funeral services are recognized on a current basis, in accordance with the Company's change in accounting methods effective November 1, 1996. Earnings of $26,463 and $24,682 were included in funeral revenue for fiscal year 1998 and 1997, respectively. Had the Company's new accounting methods been in effect in prior years, the amount of funeral trust and escrow earnings included in funeral revenue would have been $17,829 for 1996.