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þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2015
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OR
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Texas
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74-1488375
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. employer
identification no.)
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1929 Allen Parkway
Houston, Texas
(Address of principal executive offices)
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77019
(Zip code)
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Title of Each Class
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Name of Each Exchange on Which Registered
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Common Stock ($1 par value)
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New York Stock Exchange
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller Reporting company
o
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Page
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Mine Safety Disclosures
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Item 1.
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Business.
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Country, State/Territory/Province
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Number of Funeral Service Locations
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Number of Cemeteries
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Total
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United States
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Alabama
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38
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14
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52
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Arizona
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34
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11
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45
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Arkansas
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12
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3
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15
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California
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172
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37
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209
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Colorado
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24
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11
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35
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Connecticut
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19
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—
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19
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Delaware
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—
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1
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1
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District of Columbia
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1
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—
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1
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Florida
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131
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60
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191
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Georgia
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35
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19
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54
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Hawaii
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2
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2
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4
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Idaho
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6
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1
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7
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Illinois
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48
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24
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72
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Indiana
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42
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9
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51
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Iowa
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4
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2
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6
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Kansas
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9
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5
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14
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Kentucky
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16
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5
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21
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Louisiana
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27
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9
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36
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Maine
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11
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—
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11
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Maryland
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16
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13
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29
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Massachusetts
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26
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—
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26
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Michigan
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35
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—
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35
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Minnesota
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12
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2
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14
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Mississippi
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16
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4
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20
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Missouri
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26
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9
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35
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Nebraska
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4
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2
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6
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Nevada
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15
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6
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21
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New Hampshire
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6
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—
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6
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New Jersey
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20
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—
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20
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New Mexico
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1
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—
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1
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New York
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82
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—
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82
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North Carolina
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60
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17
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77
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Ohio
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35
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13
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48
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Oklahoma
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14
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7
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21
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Oregon
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17
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4
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21
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Pennsylvania
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22
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16
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38
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Puerto Rico
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12
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9
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21
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Rhode Island
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4
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—
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4
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South Carolina
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10
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9
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19
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Tennessee
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39
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18
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57
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Texas
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164
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64
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228
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Utah
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4
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3
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7
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Vermont
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4
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—
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4
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Virginia
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39
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23
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62
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Washington
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43
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13
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56
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West Virginia
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14
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10
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24
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Wisconsin
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1
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4
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5
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Canada
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Alberta
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9
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—
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9
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British Columbia
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37
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7
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44
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Manitoba
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4
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3
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7
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New Brunswick
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5
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—
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5
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Nova Scotia
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11
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—
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11
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Ontario
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44
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—
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44
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Quebec
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40
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—
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40
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Saskatchewan
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13
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—
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13
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Total
(1)
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1,535
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469
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2,004
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(1)
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Includes businesses held for sale at
December 31, 2015
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2015
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2014
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2013
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Preneed funeral merchandise and service trust funds
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(1.5
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)%
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3.7
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%
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16.6
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%
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Preneed cemetery merchandise and service trust funds
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(1.0
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)%
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3.4
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%
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19.3
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%
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Perpetual care trust funds
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(0.3
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)%
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5.2
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%
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7.6
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%
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•
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Incur additional indebtedness (including guarantee obligations);
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•
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Create liens on assets;
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•
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Engage in certain transactions with affiliates;
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•
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Enter into sale-leaseback transactions;
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•
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Engage in mergers, liquidations, and dissolutions;
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•
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Sell assets;
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Pay dividends, distributions, and other payments in respect of our capital stock;
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•
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Purchase our capital stock in the open market;
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•
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Make investments, loans, or advances;
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•
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Repay indebtedness or amend the agreements relating thereto;
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•
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Create restrictions on our ability to receive distributions from subsidiaries; and
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•
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Change our lines of business.
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•
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it may limit our ability to obtain additional debt or equity financing for working capital, capital expenditures, acquisitions, debt service requirements, and general corporate or other purposes;
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•
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a portion of our cash flows from operations will be dedicated to the payment of principal and interest on our indebtedness, including indebtedness we may incur in the future, and will not be available for other purposes,
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•
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it could limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate and place us at a competitive disadvantage compared to our competitors that have less debt;
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•
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it could make us more vulnerable to downturns in general economic or industry conditions or in our business, or prevent us from carrying out activities that are important to our growth;
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•
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it could increase our interest expense if interest rates in general increase because a portion of our indebtedness, including all of our indebtedness under our senior credit facilities, bears interest at floating rates; and
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•
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it could make it more difficult for us to satisfy our obligations with respect to our indebtedness, and any failure to comply with the obligations of any of our debt instruments, including any financial and other restrictive covenants, could result in an event of default under the agreements governing our other indebtedness which, if not cured or waived, could result in the acceleration of our indebtedness.
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Item 2.
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Properties.
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Item 3.
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Legal Proceedings.
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Officer Name
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Age
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Position
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Year First
Became Officer |
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Thomas L. Ryan
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50
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Chairman of the Board and Chief Executive Officer
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1999
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Michael R. Webb
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57
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President and Chief Operating Officer
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1998
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Eric D. Tanzberger
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47
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Senior Vice President, Chief Financial Officer and Treasurer
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2000
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Gregory T. Sangalis
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60
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Senior Vice President, General Counsel and Secretary
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2007
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Sumner J. Waring, III
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47
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Senior Vice President, Operations
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2002
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Steven A. Tidwell
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54
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Senior Vice President, Sales and Merchandising
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2010
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Tammy R. Moore
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48
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Vice President and Corporate Controller
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2010
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R. L. Waltrip
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85
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Founder and Chairman Emeritus
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1962
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Item 4.
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Mine Safety Disclosures.
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Item 5.
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Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities
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2015
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2014
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||||||||||||
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High
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Low
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High
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Low
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First quarter
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$
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27.04
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$
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22.29
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$
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19.88
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$
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16.82
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Second quarter
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$
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30.07
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$
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26.25
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$
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20.80
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$
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18.66
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Third quarter
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$
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31.94
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$
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26.64
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$
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22.34
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$
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19.96
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Fourth quarter
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$
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29.68
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$
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25.36
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$
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23.22
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$
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20.30
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Period
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Total Number of
Shares Purchased |
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Average
Price Paid per Share |
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Total Number
of Shares Purchased as Part of Publicly Announced Programs |
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Dollar Value of
Shares That May Yet be Purchased Under the Program |
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October 1, 2015 — October 31, 2015
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654,305
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$
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28.20
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654,305
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$
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300,121,653
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November 1, 2015 — November 30, 2015
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679,200
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$
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27.03
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679,200
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$
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281,752,329
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December 1, 2015 — December 31, 2015
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113,200
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$
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25.98
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|
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113,200
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$
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278,808,832
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1,446,705
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1,446,705
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Item 6.
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Selected Financial Data.
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Item 7.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations.
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Per Credit Agreement
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Actual
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Leverage ratio
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4.25 (Max)
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3.82
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Interest coverage ratio
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3.00 (Min)
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4.89
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Years Ended December 31,
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2015
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2014
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2013
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(In millions)
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||||||||||
Excess tax benefits from share-based awards
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$
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(18.1
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)
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$
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(30.1
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)
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$
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—
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Payments related to tax structure changes
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$
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(10.5
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)
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$
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—
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$
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—
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Legal defense fees
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$
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—
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$
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(10.3
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)
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$
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(6.8
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)
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Premium paid on early extinguishment of debt
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$
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(6.5
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)
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$
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(24.8
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)
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$
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—
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Acquisition, integration, and system transition costs
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$
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(6.6
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)
|
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$
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(62.2
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)
|
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$
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(48.7
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)
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Taxes paid on divestitures
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$
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—
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|
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$
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(63.8
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)
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$
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—
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•
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a $
41.0 million
increase in cash receipts from customers,
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•
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a
$12.7 million
decrease in vendor and other payments, and
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•
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a $
423.2 million
increase in cash receipts from customers, primarily due to higher cash receipts from higher preneed sales and an increase in consolidated atneed revenue, and
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•
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a $
11.7 million
increase in General Agency (GA) receipts due to an increase in preneed insurance production; partially offset by
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•
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a $
169.0 million
increase in payroll,
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•
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a $
130.7 million
increase in vendor and other payments,
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•
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a $
50.3 million
increase in interest payments, and
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•
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a $
16.5 million
increase in tax payments.
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Payments Due by Period
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||||||||||||||||||
Contractual Obligations
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2016
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2017-2018
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2019-2020
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Thereafter
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Total
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||||||||||
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(In millions)
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||||||||||||||
Debt maturities, net of discounts (including capital leases)
(1)
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|
$
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95.2
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|
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$
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1,164.9
|
|
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$
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242.0
|
|
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$
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1,664.8
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|
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$
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3,166.9
|
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Interest obligation on long-term debt
(2)
|
|
161.9
|
|
|
278.3
|
|
|
210.9
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|
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291.1
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|
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942.2
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Operating lease agreements
(3)
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14.5
|
|
|
22.7
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|
|
15.8
|
|
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61.0
|
|
|
114.0
|
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|||||
Employment and management, consulting, and non-competition agreements
(4)
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6.8
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|
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10.3
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|
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7.4
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|
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6.0
|
|
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30.5
|
|
|||||
Pension obligation
(5)
|
|
3.7
|
|
|
6.6
|
|
|
5.9
|
|
|
10.6
|
|
|
26.8
|
|
|||||
Total contractual obligations
|
|
$
|
282.1
|
|
|
$
|
1,482.8
|
|
|
$
|
482.0
|
|
|
$
|
2,033.5
|
|
|
$
|
4,280.4
|
|
(1)
|
Our outstanding indebtedness contains standard provisions, such as payment delinquency default clauses and change of control clauses. In addition, our Bank Credit Facility contains a maximum leverage ratio and a minimum interest coverage ratio. See “Capital Allocation Considerations” and Note 9 in Part II, Item 8. Financial Statements and Supplementary Data, for additional details related to our long-term debt.
|
(2)
|
Approximately
76%
of our total debt is fixed rate debt for which the interest obligation was calculated at the stated rate. Future interest obligations on our floating rate debt are based on the current forward rate curve of the underlying index. See Note 9 in Part II, Item 8. Financial Statements and Supplementary Data, for additional information related to our future interest obligations.
|
(3)
|
The majority of our lease arrangements contain options to i) purchase the property at fair value on the exercise date, ii) purchase the property for a value determined at the inception of the leases, or iii) renew for the fair rental value at the end of the primary lease term. Our leases primarily relate to funeral and cemetery operating and maintenance equipment. See Note 11 in Part II, Item 8. Financial Statements and Supplementary Data, for additional details related to our leases.
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(4)
|
We have entered into employment and management, consulting, and non-competition agreements that require us to make cash payments over the contractual period. The agreements have been primarily entered into with certain officers and employees and former owners of businesses acquired. Agreements with contractual periods less than one year are excluded. See Note 11 in Part II, Item 8. Financial Statements and Supplementary Data, for additional details related to these agreements.
|
(5)
|
See Note 14 in Part II, Item 8. Financial Statements and Supplementary Data, for discussion of our pension plans.
|
|
|
Expiration by Period
|
||||||||||||||||||
Commercial and Contingent Obligations
|
|
2016
|
|
2017-2018
|
|
2019-2020
|
|
Thereafter
|
|
Total
|
||||||||||
|
|
|
|
(In millions)
|
|
|
||||||||||||||
Surety obligations
(1)
|
|
$
|
179.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
179.2
|
|
Long-term obligations related to uncertain tax positions
(2)
|
|
182.0
|
|
|
0.6
|
|
|
—
|
|
|
51.6
|
|
|
234.2
|
|
|||||
Letters of credit
(3)
|
|
31.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31.5
|
|
|||||
Total commercial and contingent obligations
|
|
$
|
392.7
|
|
|
$
|
0.6
|
|
|
$
|
—
|
|
|
$
|
51.6
|
|
|
$
|
444.9
|
|
(1)
|
Represents the aggregate funding obligation associated with our surety bond arrangements assuming our surety partners did not renew any of our surety obligations and we could not find replacement surety assurance. See the section titled “Financial Assurances” following this table in this Form 10-K for more information related to our surety bonds.
|
(2)
|
We have recorded a liability for unrecognized tax benefits and related interest and penalties of
$234.2 million
as of
December 31, 2015
. See Note 8 in Part II, Item 8. Financial Statements and Supplementary Data, for additional information related to our uncertain tax positions. These amounts are reflected in the periods when the statutes of limitations expire.
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(3)
|
We are occasionally required to post letters of credit, issued by a financial institution, to secure certain insurance programs or other obligations. Letters of credit generally authorize the financial institution to make a payment to the beneficiary upon the satisfaction of a certain event or the failure to satisfy an obligation. The letters of credit are generally posted for one-year terms and are usually automatically renewed upon maturity until such time as we have satisfied the commitment secured by the letter of credit. We are obligated to reimburse the issuer only if the beneficiary collects on the letter of credit. We believe it is unlikely we will be required to fund a claim under our outstanding letters of credit. As of
December 31, 2015
,
$31.0 million
of our letters of credit were supported by our Bank Credit Facility, which expires in July 2018, and
$0.5 million
of our letters of credit are outside of our credit facility.
|
|
December 31, 2015
|
|
December 31, 2014
|
||||
|
(In millions)
|
||||||
Preneed funeral
|
$
|
112.7
|
|
|
$
|
121.1
|
|
Preneed cemetery:
|
|
|
|
|
|
||
Merchandise and services
|
136.7
|
|
|
138.1
|
|
||
Pre-construction
|
5.9
|
|
|
4.6
|
|
||
Bonds supporting preneed funeral and cemetery obligations
|
255.3
|
|
|
263.8
|
|
||
Bonds supporting preneed business permits
|
4.5
|
|
|
4.4
|
|
||
Other bonds
|
17.9
|
|
|
18.0
|
|
||
Total surety bonds outstanding
|
$
|
277.7
|
|
|
$
|
286.2
|
|
|
Years Ended
December 31,
|
||||||
|
2015
|
|
2014
|
||||
|
(Dollars in millions)
|
||||||
Funeral:
|
|
|
|
|
|
||
Preneed trust-funded (including bonded):
|
|
|
|
|
|
||
Sales production
|
$
|
258.3
|
|
|
$
|
230.5
|
|
Sales production (number of contracts)
|
83,060
|
|
|
78,745
|
|
||
Maturities
|
$
|
222.1
|
|
|
$
|
221.3
|
|
Maturities (number of contracts)
|
64,560
|
|
|
60,812
|
|
||
Cemetery:
|
|
|
|
|
|
||
Sales production:
|
|
|
|
|
|
||
Preneed
|
$
|
769.3
|
|
|
$
|
687.5
|
|
Atneed
|
304.4
|
|
|
307.2
|
|
||
Total sales production
|
$
|
1,073.7
|
|
|
$
|
994.7
|
|
Sales production deferred to backlog:
|
|
|
|
|
|
||
Preneed
|
$
|
336.1
|
|
|
$
|
299.8
|
|
Atneed
|
226.0
|
|
|
232.0
|
|
||
Total sales production deferred to backlog
|
$
|
562.1
|
|
|
$
|
531.8
|
|
Revenue recognized from backlog:
|
|
|
|
|
|
||
Preneed
|
$
|
255.7
|
|
|
$
|
234.7
|
|
Atneed
|
222.8
|
|
|
230.5
|
|
||
Total revenue recognized from backlog
|
$
|
478.5
|
|
|
$
|
465.2
|
|
|
Years Ended December 31,
|
||||||
|
2015
|
|
2014
|
||||
|
(Dollars in millions)
|
||||||
Preneed insurance-funded:
|
|
|
|
|
|
||
Sales production
(1)
|
$
|
543.8
|
|
|
$
|
591.7
|
|
Sales production (number of contracts)
(1)
|
90,609
|
|
|
98,487
|
|
||
General agency revenue
|
$
|
137.0
|
|
|
$
|
123.0
|
|
Maturities
|
$
|
318.3
|
|
|
$
|
350.9
|
|
Maturities (number of contracts)
|
55,615
|
|
|
61,370
|
|
(1)
|
Amounts are not included in our Consolidated Balance Sheet.
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||
|
Fair Value
|
|
Cost
|
|
Fair Value
|
|
Cost
|
||||||||
|
(In billions)
|
||||||||||||||
Deferred preneed funeral revenue
|
$
|
0.56
|
|
|
$
|
0.56
|
|
|
$
|
0.54
|
|
|
$
|
0.54
|
|
Deferred preneed funeral receipts held in trust
|
1.51
|
|
|
1.56
|
|
|
1.63
|
|
|
1.63
|
|
||||
|
2.07
|
|
|
2.12
|
|
|
2.17
|
|
|
2.17
|
|
||||
Allowance for cancellation on trust investments
|
(0.16
|
)
|
|
(0.16
|
)
|
|
(0.17
|
)
|
|
(0.17
|
)
|
||||
Backlog of trust-funded preneed funeral revenue
|
1.91
|
|
|
1.96
|
|
|
2.00
|
|
|
2.00
|
|
||||
Backlog of insurance-funded preneed revenue
(1)
|
5.10
|
|
|
5.10
|
|
|
4.82
|
|
|
4.82
|
|
||||
Total backlog of preneed funeral revenue
|
$
|
7.01
|
|
|
$
|
7.06
|
|
|
$
|
6.82
|
|
|
$
|
6.82
|
|
|
|
|
|
|
|
|
|
||||||||
Preneed funeral receivables and trust investments
|
$
|
1.76
|
|
|
$
|
1.81
|
|
|
$
|
1.84
|
|
|
$
|
1.85
|
|
Allowance for cancellation on trust investments
|
(0.15
|
)
|
|
(0.15
|
)
|
|
(0.16
|
)
|
|
(0.16
|
)
|
||||
Assets associated with backlog of trust-funded deferred preneed funeral revenue, net of estimated allowance for cancellation
|
1.61
|
|
|
1.66
|
|
|
1.68
|
|
|
1.69
|
|
||||
Insurance policies associated with insurance-funded deferred preneed revenue, net of estimated allowance for cancellation
(1)
|
5.10
|
|
|
5.10
|
|
|
4.82
|
|
|
4.82
|
|
||||
Total assets associated with backlog of preneed funeral revenue, net of estimated allowance for cancellation
|
$
|
6.71
|
|
|
$
|
6.76
|
|
|
$
|
6.50
|
|
|
$
|
6.51
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||
|
Fair Value
|
|
Cost
|
|
Fair Value
|
|
Cost
|
||||||||
|
(In billions)
|
||||||||||||||
Deferred preneed cemetery revenue
|
$
|
1.12
|
|
|
$
|
1.12
|
|
|
$
|
1.06
|
|
|
$
|
1.06
|
|
Deferred preneed cemetery receipts held in trust
|
1.46
|
|
|
1.51
|
|
|
1.52
|
|
|
1.53
|
|
||||
|
2.58
|
|
|
2.63
|
|
|
2.58
|
|
|
2.59
|
|
||||
Allowance for cancellation on trust investments
|
(0.11
|
)
|
|
(0.11
|
)
|
|
(0.11
|
)
|
|
(0.11
|
)
|
||||
Total backlog of deferred cemetery revenue
|
$
|
2.47
|
|
|
$
|
2.52
|
|
|
$
|
2.47
|
|
|
$
|
2.48
|
|
|
|
|
|
|
|
|
|
||||||||
Preneed cemetery receivables and trust investments
|
$
|
2.32
|
|
|
$
|
2.37
|
|
|
$
|
2.31
|
|
|
$
|
2.32
|
|
Allowance for cancellation on trust investments
|
(0.12
|
)
|
|
(0.12
|
)
|
|
(0.13
|
)
|
|
(0.13
|
)
|
||||
Total assets associated with backlog of deferred cemetery revenue, net of estimated allowance for cancellation
|
$
|
2.20
|
|
|
$
|
2.25
|
|
|
$
|
2.18
|
|
|
$
|
2.19
|
|
•
|
Comparable cemetery gross profit increased
$22.2 million
, or
8.5%
, from 2014 primarily due to an increase in preneed property sales recognition.
|
•
|
Comparable funeral gross profit decreased
$3.1 million
, or
0.8%
, from 2014 as increases in comparable revenue were more than offset by inflationary increases in our fixed cost structure.
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
(In thousands)
|
||||||||||
Net after-tax gains (losses) from the sale of assets
|
$
|
3,082
|
|
|
$
|
(3,196
|
)
|
|
$
|
(4,505
|
)
|
Net after-tax (losses) gains from the early extinguishment of debt, net
|
$
|
(4,287
|
)
|
|
$
|
(17,997
|
)
|
|
$
|
296
|
|
Net after-tax expenses related to system transition costs
|
$
|
(2,326
|
)
|
|
$
|
(5,671
|
)
|
|
$
|
(5,331
|
)
|
Net after-tax expenses related to the acquisition and integration costs
|
$
|
(1,865
|
)
|
|
$
|
(27,205
|
)
|
|
$
|
(33,229
|
)
|
Net after-tax expenses related to legal defense fees and other matters
|
$
|
—
|
|
|
$
|
(7,421
|
)
|
|
$
|
(7,384
|
)
|
Change in certain tax reserves and other
|
$
|
(2,988
|
)
|
|
$
|
(3,152
|
)
|
|
$
|
(1,369
|
)
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
(Dollars in millions, except average revenue per service)
|
||||||||||
Consolidated funeral revenue
|
$
|
1,888.8
|
|
|
$
|
1,920.5
|
|
|
$
|
1,698.5
|
|
Less: revenue associated with acquisitions/new construction
|
12.3
|
|
|
1.7
|
|
|
—
|
|
|||
Less: revenue associated with divestitures
|
6.1
|
|
|
67.5
|
|
|
69.3
|
|
|||
Comparable
1
funeral revenue
|
1,870.4
|
|
|
1,851.3
|
|
|
1,629.2
|
|
|||
Less: Comparable recognized preneed revenue
|
96.2
|
|
|
84.8
|
|
|
74.0
|
|
|||
Less: Comparable general agency revenue
|
136.5
|
|
|
121.4
|
|
|
103.8
|
|
|||
Less: Other revenue
|
13.6
|
|
|
12.3
|
|
|
17.0
|
|
|||
Adjusted comparable funeral revenue
|
$
|
1,624.1
|
|
|
$
|
1,632.8
|
|
|
$
|
1,434.4
|
|
Comparable services performed
|
313,068
|
|
|
312,658
|
|
|
273,806
|
|
|||
Comparable average revenue per service
2
|
$
|
5,188
|
|
|
$
|
5,222
|
|
|
$
|
5,239
|
|
|
|
|
|
|
|
||||||
Consolidated funeral gross profit
|
$
|
387.5
|
|
|
$
|
409.7
|
|
|
$
|
349.8
|
|
Less: gross loss associated with acquisitions/new construction
|
(1.5
|
)
|
|
(0.4
|
)
|
|
—
|
|
|||
Less: gross (loss) profit associated with divestitures
|
(2.7
|
)
|
|
15.3
|
|
|
13.5
|
|
|||
Comparable
1
funeral gross profit
|
$
|
391.7
|
|
|
$
|
394.8
|
|
|
$
|
336.3
|
|
(1)
|
We define comparable (or same store) operations as those funeral locations owned by us for the entire period beginning
January 1, 2014
and ending
December 31, 2015
.
|
(2)
|
We calculate comparable average revenue per service by dividing comparable funeral revenue, excluding general agency revenues, recognized preneed revenues, and other revenues to avoid distorting our average of normal funeral services revenue, by the comparable number of services performed during the period. Recognized preneed revenues are preneed sales of merchandise that are delivered at the time of sale, including memorial merchandise and travel protection insurance, and are excluded from our calculation of comparable average revenue per service because the associated service has not yet been performed.
|
•
|
an increase in comparable recognized preneed revenues of
$11.4 million
;
|
•
|
a
$15.1 million
increase in comparable general agency revenues; and
|
•
|
a 0.1% increase in comparable services performed. This growth comprises an 11.7% increase in preneed services performed sold through our non-funeral home channel offset by a 0.8% decrease in atneed services and preneed services sold through our funeral homes. Our comparable cremation rate increased to
51.6%
in
2015
from
51.0%
in
2014
as a result of an increase in direct cremations. While the average revenue for direct cremations and cremations with service is lower than that for traditional burials, we continue to expand our cremation memorialization product and service offerings.
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
(In millions)
|
||||||||||
Consolidated cemetery revenue
|
$
|
1,097.6
|
|
|
$
|
1,073.5
|
|
|
$
|
852.0
|
|
Less: revenue associated with acquisitions/new construction
|
8.2
|
|
|
1.3
|
|
|
—
|
|
|||
Less: revenue associated with divestitures
|
0.4
|
|
|
34.7
|
|
|
27.2
|
|
|||
Comparable
1
cemetery revenue
|
$
|
1,089.0
|
|
|
$
|
1,037.5
|
|
|
$
|
824.8
|
|
|
|
|
|
|
|
||||||
Consolidated cemetery gross profit
|
$
|
284.4
|
|
|
$
|
266.0
|
|
|
$
|
199.2
|
|
Less: gross profit associated with acquisitions/new construction
|
2.1
|
|
|
0.1
|
|
|
—
|
|
|||
Less: gross (loss) profit associated with divestitures
|
(0.3
|
)
|
|
5.5
|
|
|
5.1
|
|
|||
Comparable
1
cemetery gross profit
|
$
|
282.6
|
|
|
$
|
260.4
|
|
|
$
|
194.1
|
|
(1)
|
We define comparable (or same store) operations as those cemetery locations owned by us for the entire period beginning
January 1, 2014
and ending
December 31, 2015
.
|
•
|
an $8.6 million increase in comparable selling costs as a result of planned advertising and media spend and commissions paid for increased preneed production;
|
•
|
a $7.7 million increase in overhead expenses due to the newly combined entity and information technology support infrastructure upgrades;
|
•
|
a $5.9 million increase in direct property and merchandise costs driven by higher revenues described above;
|
•
|
a $5.6 million increase in salaries and other employee-related costs; and
|
•
|
a $1.4 million increase in maintenance expenses.
|
•
|
Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets;
|
•
|
Level 2 — inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and
|
•
|
Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value measurement.
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 8.
|
Financial Statements and Supplementary Data.
|
|
Page
|
Financial Statements:
|
|
Report of Independent Registered Public Accounting Firm
|
|
Consolidated Statement of Operations for the years ended December 31, 2015, 2014, and 2013
|
|
Consolidated Statement of Comprehensive Income for the years ended December 31, 2015, 2014, and 2013
|
|
Consolidated Balance Sheet as of December 31, 2015 and 2014
|
|
Consolidated Statement of Cash Flows for the years ended December 31, 2015, 2014, and 2013
|
|
Consolidated Statement of Equity for the three years ended December 31, 2015
|
|
Notes to Consolidated Financial Statements
|
|
1. Nature of Operations
|
|
2. Summary of Significant Accounting Policies
|
|
3. Preneed Funeral Activities
|
|
4. Preneed Cemetery Activities
|
|
5. Cemetery Perpetual Care Trusts
|
|
6. Deferred Preneed Receipts Held in Trust and Care Trusts’ Corpus
|
|
7. Goodwill and Intangible Assets
|
|
8. Income Taxes
|
|
9. Debt
|
|
10. Credit Risk and Fair Value of Financial Instruments
|
|
11. Commitments and Contingencies
|
|
12. Equity
|
|
13. Share-Based Compensation
|
|
14. Retirement Plans
|
|
15. Segment Reporting
|
|
16. Supplementary Information
|
|
17. Earnings Per Share
|
|
18. Acquisitions
|
|
19. Divestiture-Related Activities
|
|
20. Quarterly Financial Data (Unaudited)
|
|
Financial Statement Schedule:
|
|
II — Valuation and Qualifying Accounts
|
SERVICE CORPORATION INTERNATIONAL
CONSOLIDATED STATEMENT OF OPERATIONS
|
|||||||||||
|
Years Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
|
(In thousands, except per share amounts)
|
||||||||||
Revenue
|
$
|
2,986,380
|
|
|
$
|
2,994,011
|
|
|
$
|
2,550,466
|
|
Costs and expenses
|
(2,314,435
|
)
|
|
(2,318,326
|
)
|
|
(2,001,419
|
)
|
|||
Gross profit
|
671,945
|
|
|
675,685
|
|
|
549,047
|
|
|||
General and administrative expenses
|
(128,188
|
)
|
|
(184,749
|
)
|
|
(155,128
|
)
|
|||
Gains (losses) on divestitures and impairment charges, net
|
6,522
|
|
|
116,613
|
|
|
(6,263
|
)
|
|||
Operating income
|
550,279
|
|
|
607,549
|
|
|
387,656
|
|
|||
Interest expense
|
(172,897
|
)
|
|
(177,571
|
)
|
|
(142,360
|
)
|
|||
(Losses) gains on early extinguishment of debt, net
|
(6,918
|
)
|
|
(29,158
|
)
|
|
468
|
|
|||
Other (expense) income, net
|
(113
|
)
|
|
1,780
|
|
|
(558
|
)
|
|||
Income from continuing operations before income taxes
|
370,351
|
|
|
402,600
|
|
|
245,206
|
|
|||
Provision for income taxes
|
(135,027
|
)
|
|
(225,980
|
)
|
|
(93,024
|
)
|
|||
Income from continuing operations
|
235,324
|
|
|
176,620
|
|
|
152,182
|
|
|||
Net (loss) income from discontinued operations, net of tax
|
(390
|
)
|
|
2,186
|
|
|
406
|
|
|||
Net income
|
234,934
|
|
|
178,806
|
|
|
152,588
|
|
|||
Net income attributable to noncontrolling interests
|
(1,162
|
)
|
|
(6,337
|
)
|
|
(5,256
|
)
|
|||
Net income attributable to common stockholders
|
$
|
233,772
|
|
|
$
|
172,469
|
|
|
$
|
147,332
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|||
Net income attributable to common stockholders
|
$
|
1.17
|
|
|
$
|
0.82
|
|
|
$
|
0.70
|
|
Basic weighted average number of shares
|
200,356
|
|
|
210,741
|
|
|
211,811
|
|
|||
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|||
Net income attributable to common stockholders
|
$
|
1.14
|
|
|
$
|
0.81
|
|
|
$
|
0.68
|
|
Diluted weighted average number of shares
|
204,450
|
|
|
214,200
|
|
|
216,014
|
|
|||
Dividends declared per share
|
$
|
0.44
|
|
|
$
|
0.34
|
|
|
$
|
0.27
|
|
|
|
|
|
|
|
||||||
|
Years Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
|
(In thousands)
|
||||||||||
Net income
|
$
|
234,934
|
|
|
$
|
178,806
|
|
|
$
|
152,588
|
|
Other comprehensive income:
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
(53,283
|
)
|
|
(32,096
|
)
|
|
(23,292
|
)
|
|||
Reclassification of foreign currency translation adjustments to discontinued operations
|
—
|
|
|
3,114
|
|
|
—
|
|
|||
Total comprehensive income
|
181,651
|
|
|
149,824
|
|
|
129,296
|
|
|||
Total comprehensive income attributable to noncontrolling interests
|
(1,129
|
)
|
|
(6,382
|
)
|
|
(5,240
|
)
|
|||
Total comprehensive income attributable to common stockholders
|
$
|
180,522
|
|
|
$
|
143,442
|
|
|
$
|
124,056
|
|
SERVICE CORPORATION INTERNATIONAL
CONSOLIDATED BALANCE SHEET
|
|||||||
|
December 31,
|
||||||
|
2015
|
|
2014
|
||||
|
(In thousands, except share amounts)
|
||||||
ASSETS
|
|||||||
Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
134,599
|
|
|
$
|
177,335
|
|
Receivables, net
|
90,462
|
|
|
109,050
|
|
||
Inventories
|
27,835
|
|
|
29,697
|
|
||
Other
|
55,513
|
|
|
80,774
|
|
||
Total current assets
|
308,409
|
|
|
396,856
|
|
||
Preneed funeral receivables, net and trust investments
|
1,760,297
|
|
|
1,843,023
|
|
||
Preneed cemetery receivables, net and trust investments
|
2,318,167
|
|
|
2,306,669
|
|
||
Cemetery property
|
1,753,015
|
|
|
1,739,216
|
|
||
Property and equipment, net
|
1,846,722
|
|
|
1,861,403
|
|
||
Goodwill
|
1,796,340
|
|
|
1,810,853
|
|
||
Deferred charges and other assets
|
616,511
|
|
|
624,248
|
|
||
Cemetery perpetual care trust investments
|
1,319,427
|
|
|
1,341,376
|
|
||
Total assets
|
$
|
11,718,888
|
|
|
$
|
11,923,644
|
|
LIABILITIES & EQUITY
|
|||||||
Current liabilities:
|
|
|
|
|
|
||
Accounts payable and accrued liabilities
|
$
|
422,842
|
|
|
$
|
453,042
|
|
Current maturities of long-term debt
|
95,181
|
|
|
90,931
|
|
||
Income taxes payable
|
1,373
|
|
|
8,035
|
|
||
Total current liabilities
|
519,396
|
|
|
552,008
|
|
||
Long-term debt
|
3,071,738
|
|
|
2,963,794
|
|
||
Deferred preneed funeral revenue
|
557,897
|
|
|
540,164
|
|
||
Deferred preneed cemetery revenue
|
1,120,001
|
|
|
1,062,381
|
|
||
Deferred tax liability
|
470,584
|
|
|
448,824
|
|
||
Other liabilities
|
496,921
|
|
|
502,553
|
|
||
Deferred preneed receipts held in trust
|
2,973,386
|
|
|
3,148,884
|
|
||
Care trusts’ corpus
|
1,319,564
|
|
|
1,327,658
|
|
||
Commitments and contingencies (Note 11)
|
|
|
|
|
|
||
Equity:
|
|
|
|
||||
Common stock, $1 per share par value, 500,000,000 shares authorized, 200,859,676 and 205,458,331 shares issued, respectively, and 195,772,876 and 204,866,770 shares outstanding, respectively
|
195,773
|
|
|
204,867
|
|
||
Capital in excess of par value
|
1,092,106
|
|
|
1,186,304
|
|
||
Accumulated deficit
|
(109,351
|
)
|
|
(81,859
|
)
|
||
Accumulated other comprehensive income
|
6,164
|
|
|
59,414
|
|
||
Total common stockholders’ equity
|
1,184,692
|
|
|
1,368,726
|
|
||
Noncontrolling interests
|
4,709
|
|
|
8,652
|
|
||
Total equity
|
1,189,401
|
|
|
1,377,378
|
|
||
Total liabilities and equity
|
$
|
11,718,888
|
|
|
$
|
11,923,644
|
|
SERVICE CORPORATION INTERNATIONAL
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|||||||||||
|
Years Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
(In thousands)
|
|
|
|
|||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
234,934
|
|
|
$
|
178,806
|
|
|
$
|
152,588
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|||
Income (loss) from discontinued operations, net of tax
|
390
|
|
|
(2,186
|
)
|
|
(406
|
)
|
|||
Losses (gains) on early extinguishment of debt, net
|
6,918
|
|
|
29,158
|
|
|
(468
|
)
|
|||
Premiums paid on early extinguishment of debt
|
(6,549
|
)
|
|
(24,804
|
)
|
|
—
|
|
|||
Depreciation and amortization
|
141,456
|
|
|
140,002
|
|
|
122,235
|
|
|||
Amortization of intangible assets
|
31,459
|
|
|
36,640
|
|
|
21,859
|
|
|||
Amortization of cemetery property
|
62,407
|
|
|
60,439
|
|
|
48,344
|
|
|||
Amortization of loan costs
|
9,434
|
|
|
8,825
|
|
|
15,943
|
|
|||
Provision for doubtful accounts
|
6,083
|
|
|
7,376
|
|
|
7,874
|
|
|||
Provision for deferred income taxes
|
18,048
|
|
|
129,671
|
|
|
71,708
|
|
|||
(Gains) losses on divestitures and impairment charges, net
|
(6,522
|
)
|
|
(116,613
|
)
|
|
6,263
|
|
|||
Share-based compensation
|
13,843
|
|
|
13,127
|
|
|
11,925
|
|
|||
Excess tax benefits from share-based awards
|
(18,123
|
)
|
|
(30,123
|
)
|
|
—
|
|
|||
Change in assets and liabilities, net of effects from acquisitions and dispositions:
|
|
|
|
|
|
|
|
|
|||
Decrease (increase) in receivables
|
464
|
|
|
(18,644
|
)
|
|
11,017
|
|
|||
Decrease (increase) in other assets
|
2,457
|
|
|
(11,013
|
)
|
|
(14,815
|
)
|
|||
Increase (decrease) in payables and other liabilities
|
20,567
|
|
|
(12,038
|
)
|
|
(1,995
|
)
|
|||
Effect of preneed funeral production and maturities:
|
|
|
|
|
|
|
|
|
|||
Decrease in preneed funeral receivables, net and trust investments
|
24,918
|
|
|
30,357
|
|
|
47,648
|
|
|||
Increase (decrease) in deferred preneed funeral revenue
|
6,199
|
|
|
(23,069
|
)
|
|
(9,260
|
)
|
|||
Decrease in deferred preneed receipts held in trust
|
(52,946
|
)
|
|
(52,869
|
)
|
|
(50,990
|
)
|
|||
Effect of preneed cemetery production and maturities:
|
|
|
|
|
|
|
|
|
|||
Increase in preneed cemetery receivables, net and trust investments
|
(73,038
|
)
|
|
(43,964
|
)
|
|
(73,626
|
)
|
|||
Increase in deferred preneed cemetery revenue
|
60,960
|
|
|
54,049
|
|
|
30,785
|
|
|||
Decrease in deferred preneed receipts held in trust
|
(11,173
|
)
|
|
(34,664
|
)
|
|
(12,761
|
)
|
|||
Other
|
—
|
|
|
(108
|
)
|
|
(27
|
)
|
|||
Net cash provided by operating activities from continuing operations
|
472,186
|
|
|
318,355
|
|
|
383,841
|
|
|||
Net cash (used in) provided by operating activities from discontinued operations
|
—
|
|
|
(1,000
|
)
|
|
868
|
|
|||
Net cash provided by operating activities
|
472,186
|
|
|
317,355
|
|
|
384,709
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|||
Capital expenditures
|
(150,986
|
)
|
|
(144,499
|
)
|
|
(112,939
|
)
|
|||
Acquisitions, net of cash acquired
|
(41,258
|
)
|
|
(15,336
|
)
|
|
(1,057,122
|
)
|
|||
Proceeds from divestitures and sales of property and equipment
|
16,772
|
|
|
424,383
|
|
|
13,219
|
|
|||
Net withdrawals (deposits) of restricted funds and other
|
8,066
|
|
|
(12,225
|
)
|
|
341
|
|
|||
Net cash (used in) provided by investing activities from continuing operations
|
(167,406
|
)
|
|
252,323
|
|
|
(1,156,501
|
)
|
|||
Net cash provided by (used in) investing activities from discontinued operations
|
987
|
|
|
4,963
|
|
|
(292
|
)
|
|||
Net cash (used in) provided by investing activities
|
(166,419
|
)
|
|
257,286
|
|
|
(1,156,793
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|||
Proceeds from issuance of long-term debt
|
446,250
|
|
|
755,000
|
|
|
1,055,000
|
|
|||
Debt issuance costs
|
(6,025
|
)
|
|
(10,500
|
)
|
|
(36,064
|
)
|
|||
Payments of debt
|
(160,220
|
)
|
|
(230,561
|
)
|
|
(90,466
|
)
|
|||
Early extinguishment of debt
|
(197,377
|
)
|
|
(762,764
|
)
|
|
(80
|
)
|
|||
Principal payments on capital leases
|
(28,601
|
)
|
|
(29,380
|
)
|
|
(26,280
|
)
|
|||
Proceeds from exercise of stock options
|
31,809
|
|
|
32,376
|
|
|
6,309
|
|
|||
Excess tax benefits from share-based awards
|
18,123
|
|
|
30,123
|
|
|
—
|
|
|||
Purchase of Company common stock
|
(345,261
|
)
|
|
(242,874
|
)
|
|
(1,708
|
)
|
|||
Payments of dividends
|
(87,570
|
)
|
|
(71,517
|
)
|
|
(57,229
|
)
|
|||
Purchase of noncontrolling interest
|
(2,075
|
)
|
|
(15,000
|
)
|
|
(23,333
|
)
|
|||
Bank overdrafts and other
|
(7,531
|
)
|
|
7,130
|
|
|
336
|
|
|||
Net cash (used in) provided by financing activities from continued operations
|
(338,478
|
)
|
|
(537,967
|
)
|
|
826,485
|
|
SERVICE CORPORATION INTERNATIONAL
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|||||||||||
|
Years Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
(In thousands)
|
|
|
|
|||||
Net cash used in financing activities from discontinued operations
|
—
|
|
|
—
|
|
|
(1,370
|
)
|
|||
Net cash (used in) provided by financing activities
|
(338,478
|
)
|
|
(537,967
|
)
|
|
825,115
|
|
|||
Net change in cash of discontinued operations
|
—
|
|
|
1,361
|
|
|
785
|
|
|||
Effect of foreign currency
|
(10,025
|
)
|
|
(2,284
|
)
|
|
(1,001
|
)
|
|||
Net (decrease) increase in cash and cash equivalents
|
(42,736
|
)
|
|
35,751
|
|
|
52,815
|
|
|||
Cash and cash equivalents at beginning of period
|
177,335
|
|
|
141,584
|
|
|
88,769
|
|
|||
Cash and cash equivalents at end of period
|
$
|
134,599
|
|
|
$
|
177,335
|
|
|
$
|
141,584
|
|
|
Common
Stock
|
|
Treasury
Stock,
Par Value
|
|
Capital in
Excess of
Par Value
|
|
Accumulated
Deficit
|
|
Accumulated
Other
Comprehensive
Income
|
|
Noncontrolling
Interest
|
|
Total
|
||||||||||||||
|
(In thousands, except per share amounts)
|
||||||||||||||||||||||||||
Balance at December 31, 2012
|
$
|
211,057
|
|
|
$
|
(10
|
)
|
|
$
|
1,307,058
|
|
|
$
|
(234,429
|
)
|
|
$
|
111,717
|
|
|
$
|
19,800
|
|
|
$
|
1,415,193
|
|
Comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
147,332
|
|
|
(23,276
|
)
|
|
5,240
|
|
|
129,296
|
|
|||||||
Dividends declared on common stock ($.27 per share)
|
—
|
|
|
—
|
|
|
(57,229
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(57,229
|
)
|
|||||||
Stock option exercises
|
1,087
|
|
|
—
|
|
|
8,226
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,313
|
|
|||||||
Restricted stock award, net of forfeitures and other
|
378
|
|
|
(3
|
)
|
|
(375
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Employee share-based compensation earned
|
—
|
|
|
—
|
|
|
11,925
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,925
|
|
|||||||
Purchase of Company common stock
|
—
|
|
|
(275
|
)
|
|
(1,508
|
)
|
|
(2,929
|
)
|
|
—
|
|
|
—
|
|
|
(4,712
|
)
|
|||||||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
(10,023
|
)
|
|
—
|
|
|
—
|
|
|
(13,310
|
)
|
|
(23,333
|
)
|
|||||||
Acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
118
|
|
|
118
|
|
|||||||
Noncontrolling interest payments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,700
|
)
|
|
(1,700
|
)
|
|||||||
Retirement of treasury shares
|
(278
|
)
|
|
278
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other
|
83
|
|
|
—
|
|
|
1,274
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,357
|
|
|||||||
Balance at December 31, 2013
|
$
|
212,327
|
|
|
$
|
(10
|
)
|
|
$
|
1,259,348
|
|
|
$
|
(90,026
|
)
|
|
$
|
88,441
|
|
|
$
|
10,148
|
|
|
$
|
1,480,228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
172,469
|
|
|
(29,027
|
)
|
|
6,382
|
|
|
149,824
|
|
|||||||
Dividends declared on common stock ($.34 per share)
|
—
|
|
|
—
|
|
|
(71,517
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(71,517
|
)
|
|||||||
Stock option exercises
|
3,642
|
|
|
—
|
|
|
29,495
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,137
|
|
|||||||
Restricted stock awards, net of forfeitures
|
352
|
|
|
—
|
|
|
(352
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Employee share-based compensation earned
|
—
|
|
|
—
|
|
|
13,127
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,127
|
|
|||||||
Purchase of Company common stock
|
—
|
|
|
(11,537
|
)
|
|
(67,796
|
)
|
|
(164,302
|
)
|
|
—
|
|
|
—
|
|
|
(243,635
|
)
|
|||||||
Tax benefits related to share-based awards
|
—
|
|
|
—
|
|
|
30,123
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,123
|
|
|||||||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
(7,441
|
)
|
|
—
|
|
|
—
|
|
|
(7,559
|
)
|
|
(15,000
|
)
|
|||||||
Noncontrolling interest payments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(319
|
)
|
|
(319
|
)
|
|||||||
Retirement of treasury shares
|
(10,956
|
)
|
|
10,956
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other
|
93
|
|
|
—
|
|
|
1,317
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,410
|
|
|||||||
Balance at December 31, 2014
|
$
|
205,458
|
|
|
$
|
(591
|
)
|
|
$
|
1,186,304
|
|
|
$
|
(81,859
|
)
|
|
$
|
59,414
|
|
|
$
|
8,652
|
|
|
$
|
1,377,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
233,772
|
|
|
(53,250
|
)
|
|
1,129
|
|
|
181,651
|
|
|||||||
Dividends declared on common stock ($.44 per share)
|
—
|
|
|
—
|
|
|
(87,570
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(87,570
|
)
|
|||||||
Stock option exercises
|
3,054
|
|
|
—
|
|
|
28,877
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,931
|
|
|||||||
Restricted stock awards, net of forfeitures
|
254
|
|
|
(9
|
)
|
|
(245
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Employee share-based compensation earned
|
—
|
|
|
—
|
|
|
13,843
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,843
|
|
|||||||
Purchase of Company common stock
|
—
|
|
|
(12,455
|
)
|
|
(71,664
|
)
|
|
(261,264
|
)
|
|
—
|
|
|
—
|
|
|
(345,383
|
)
|
|||||||
Tax benefits related to share-based awards
|
—
|
|
|
—
|
|
|
18,123
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,123
|
|
|||||||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
2,775
|
|
|
—
|
|
|
—
|
|
|
(4,850
|
)
|
|
(2,075
|
)
|
|||||||
Noncontrolling interest payments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(222
|
)
|
|
(222
|
)
|
|||||||
Retirement of treasury shares
|
(7,969
|
)
|
|
7,969
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|||||||
Other
|
62
|
|
|
—
|
|
|
1,663
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,725
|
|
|||||||
Balance at December 31, 2015
|
$
|
200,859
|
|
|
$
|
(5,086
|
)
|
|
$
|
1,092,106
|
|
|
$
|
(109,351
|
)
|
|
$
|
6,164
|
|
|
$
|
4,709
|
|
|
$
|
1,189,401
|
|
1.
|
Nature of Operations
|
2.
|
Summary of Significant Accounting Policies
|
•
|
Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets;
|
•
|
Level 2 — inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and
|
•
|
Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value measurement.
|
3.
|
Preneed Funeral Activities
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
(In thousands)
|
|
|
||||||
Deposits
|
$
|
121,109
|
|
|
$
|
102,553
|
|
|
$
|
82,168
|
|
Withdrawals
|
$
|
160,135
|
|
|
$
|
131,352
|
|
|
$
|
125,914
|
|
Purchases of available-for-sale securities
(1)
|
$
|
453,092
|
|
|
$
|
1,238,257
|
|
|
$
|
393,169
|
|
Sales of available-for-sale securities
(1)
|
$
|
458,236
|
|
|
$
|
1,318,512
|
|
|
$
|
435,267
|
|
Realized gains from sales of available-for-sale securities
(1)
|
$
|
42,034
|
|
|
$
|
168,567
|
|
|
$
|
65,011
|
|
Realized losses from sales of available-for-sale securities
(1)
|
$
|
(31,403
|
)
|
|
$
|
(113,748
|
)
|
|
$
|
(9,732
|
)
|
(1)
|
The increase in activity in
2014
is the result of changing the legal structure of the trust investments.
|
|
2015
|
|
2014
|
||||
|
(In thousands)
|
||||||
Trust investments, at market
|
$
|
1,109,394
|
|
|
$
|
1,205,747
|
|
Cash and cash equivalents
|
134,642
|
|
|
162,229
|
|
||
Assets associated with businesses held for sale
|
(39
|
)
|
|
—
|
|
||
Insurance-backed fixed income securities
|
271,116
|
|
|
260,899
|
|
||
Trust investments
|
1,515,113
|
|
|
1,628,875
|
|
||
Receivables from customers
|
290,689
|
|
|
262,700
|
|
||
Unearned finance charge
|
(11,235
|
)
|
|
(11,054
|
)
|
||
|
1,794,567
|
|
|
1,880,521
|
|
||
Allowance for cancellation
|
(34,270
|
)
|
|
(37,498
|
)
|
||
Preneed funeral receivables and trust investments
|
$
|
1,760,297
|
|
|
$
|
1,843,023
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
(In thousands)
|
|
|
||||||
Beginning balance — Preneed funeral receivables and trust investments
|
$
|
1,843,023
|
|
|
$
|
1,870,243
|
|
|
$
|
1,536,257
|
|
Net preneed contract sales
|
283,927
|
|
|
247,994
|
|
|
192,712
|
|
|||
Cash receipts from customers, net of refunds
|
(234,413
|
)
|
|
(211,830
|
)
|
|
(170,921
|
)
|
|||
Deposits to trust
|
121,109
|
|
|
102,553
|
|
|
82,168
|
|
|||
Acquisitions (divestitures) of businesses, net
|
1,400
|
|
|
(19,203
|
)
|
|
271,395
|
|
|||
Net undistributed investment (losses) earnings
(1)
|
(38,510
|
)
|
|
22,480
|
|
|
125,986
|
|
|||
Maturities and distributed earnings
|
(200,635
|
)
|
|
(162,059
|
)
|
|
(153,446
|
)
|
|||
Change in cancellation allowance
|
2,787
|
|
|
7,644
|
|
|
(3,245
|
)
|
|||
Effect of foreign currency and other
|
(18,391
|
)
|
|
(14,799
|
)
|
|
(10,663
|
)
|
|||
Ending balance — Preneed funeral receivables and trust investments
|
$
|
1,760,297
|
|
|
$
|
1,843,023
|
|
|
$
|
1,870,243
|
|
(1)
|
Includes both realized and unrealized investment earnings.
|
|
|
December 31, 2015
|
||||||||||||||
|
Fair Value Hierarchy Level
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury
|
2
|
$
|
82,417
|
|
|
$
|
107
|
|
|
$
|
(1,331
|
)
|
|
$
|
81,193
|
|
Canadian government
|
2
|
72,488
|
|
|
532
|
|
|
(655
|
)
|
|
72,365
|
|
||||
Corporate
|
2
|
19,036
|
|
|
235
|
|
|
(284
|
)
|
|
18,987
|
|
||||
Residential mortgage-backed
|
2
|
1,297
|
|
|
29
|
|
|
(22
|
)
|
|
1,304
|
|
||||
Asset-backed
|
2
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Preferred stock
|
2
|
1,949
|
|
|
41
|
|
|
(158
|
)
|
|
1,832
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States
|
1
|
344,116
|
|
|
30,885
|
|
|
(19,149
|
)
|
|
355,852
|
|
||||
Canada
|
1
|
11,930
|
|
|
2,652
|
|
|
(1,077
|
)
|
|
13,505
|
|
||||
Other international
|
1
|
32,156
|
|
|
2,636
|
|
|
(3,907
|
)
|
|
30,885
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity
|
1
|
323,884
|
|
|
1,263
|
|
|
(43,975
|
)
|
|
281,172
|
|
||||
Fixed income
|
1
|
155,717
|
|
|
154
|
|
|
(13,092
|
)
|
|
142,779
|
|
||||
Commingled funds:
|
|
|
|
|
|
|
|
|
||||||||
Fixed income
|
2
|
69,148
|
|
|
—
|
|
|
(442
|
)
|
|
68,706
|
|
||||
Private equity
|
3
|
38,201
|
|
|
3,703
|
|
|
(6,467
|
)
|
|
35,437
|
|
||||
Other
|
3
|
4,226
|
|
|
1,146
|
|
|
—
|
|
|
5,372
|
|
||||
Trust investments
|
|
$
|
1,156,570
|
|
|
$
|
43,383
|
|
|
$
|
(90,559
|
)
|
|
$
|
1,109,394
|
|
|
|
December 31, 2014
|
||||||||||||||
|
Fair Value Hierarchy Level
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury
|
2
|
$
|
85,775
|
|
|
$
|
468
|
|
|
$
|
(455
|
)
|
|
$
|
85,788
|
|
Canadian government
|
2
|
90,430
|
|
|
449
|
|
|
(874
|
)
|
|
90,005
|
|
||||
Corporate
|
2
|
24,765
|
|
|
423
|
|
|
(126
|
)
|
|
25,062
|
|
||||
Residential mortgage-backed
|
2
|
1,325
|
|
|
29
|
|
|
(12
|
)
|
|
1,342
|
|
||||
Asset-backed
|
2
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Preferred stock
|
2
|
2,503
|
|
|
113
|
|
|
(113
|
)
|
|
2,503
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States
|
1
|
377,441
|
|
|
18,533
|
|
|
(7,405
|
)
|
|
388,569
|
|
||||
Canada
|
1
|
14,708
|
|
|
4,292
|
|
|
(895
|
)
|
|
18,105
|
|
||||
Other international
|
1
|
38,035
|
|
|
1,175
|
|
|
(1,560
|
)
|
|
37,650
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity
|
1
|
308,548
|
|
|
3,332
|
|
|
(15,901
|
)
|
|
295,979
|
|
||||
Fixed income
|
1
|
229,414
|
|
|
869
|
|
|
(3,576
|
)
|
|
226,707
|
|
||||
Private equity
|
3
|
35,094
|
|
|
2,649
|
|
|
(9,418
|
)
|
|
28,325
|
|
||||
Other
|
3
|
5,084
|
|
|
726
|
|
|
(104
|
)
|
|
5,706
|
|
||||
Trust investments
|
|
$
|
1,213,128
|
|
|
$
|
33,058
|
|
|
$
|
(40,439
|
)
|
|
$
|
1,205,747
|
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||||
|
Private Equity
|
|
Other
|
|
Private Equity
|
|
Other
|
|
Private Equity
|
|
Other
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fair value, beginning balance at January 1,
|
$
|
28,325
|
|
|
$
|
5,706
|
|
|
$
|
26,885
|
|
|
$
|
1,808
|
|
|
$
|
17,879
|
|
|
$
|
744
|
|
Net unrealized gains included in
Accumulated other comprehensive income
(1)
|
6,449
|
|
|
214
|
|
|
2,242
|
|
|
826
|
|
|
13,429
|
|
|
1,442
|
|
||||||
Net realized losses included in
Other income (expense), net
(2)
|
(44
|
)
|
|
(15
|
)
|
|
(39
|
)
|
|
(6
|
)
|
|
(43
|
)
|
|
(3
|
)
|
||||||
Purchases
|
—
|
|
|
32
|
|
|
—
|
|
|
3,214
|
|
|
1,188
|
|
|
—
|
|
||||||
Sales
|
(36
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Contributions
|
7,464
|
|
|
1,297
|
|
|
6,122
|
|
|
4
|
|
|
3,229
|
|
|
—
|
|
||||||
Distributions and other
|
(6,721
|
)
|
|
(1,862
|
)
|
|
(6,885
|
)
|
|
(140
|
)
|
|
(9,245
|
)
|
|
(393
|
)
|
||||||
Acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
448
|
|
|
18
|
|
||||||
Fair value, ending balance at December 31,
|
$
|
35,437
|
|
|
$
|
5,372
|
|
|
$
|
28,325
|
|
|
$
|
5,706
|
|
|
$
|
26,885
|
|
|
$
|
1,808
|
|
(1)
|
All unrealized gains recognized in
Accumulated other comprehensive income
for our funeral merchandise and service trust investments are attributable to our preneed customers and are offset by a corresponding reclassification in
Accumulated other comprehensive income
to
Deferred preneed receipts held in trust
. See Note 6 for further information related to our
Deferred preneed receipts held in trust
.
|
(2)
|
All losses recognized in
Other income (expense), net
for our funeral merchandise and service trust investments are attributable to our preneed customers and are offset by a corresponding reclassification in
Other income (expense), net
to
Deferred preneed receipts held in trust
. See Note 6 for further information related to our
Deferred preneed receipts held in trust
.
|
|
Fair Value
|
||
|
(In thousands)
|
||
Due in one year or less
|
$
|
107,784
|
|
Due in one to five years
|
25,635
|
|
|
Due in five to ten years
|
26,390
|
|
|
Thereafter
|
14,045
|
|
|
|
$
|
173,854
|
|
|
December 31, 2015
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Fair
Market
Value
|
|
Unrealized
Losses
|
|
Fair
Market
Value
|
|
Unrealized
Losses
|
|
Fair
Market
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury
|
$
|
37,008
|
|
|
$
|
(1,273
|
)
|
|
$
|
4,687
|
|
|
$
|
(58
|
)
|
|
$
|
41,695
|
|
|
$
|
(1,331
|
)
|
Canadian government
|
2,336
|
|
|
(17
|
)
|
|
11,535
|
|
|
(638
|
)
|
|
13,871
|
|
|
(655
|
)
|
||||||
Corporate
|
4,644
|
|
|
(156
|
)
|
|
4,025
|
|
|
(128
|
)
|
|
8,669
|
|
|
(284
|
)
|
||||||
Residential mortgage-backed
|
377
|
|
|
(6
|
)
|
|
133
|
|
|
(16
|
)
|
|
510
|
|
|
(22
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Preferred stock
|
448
|
|
|
(60
|
)
|
|
42
|
|
|
(98
|
)
|
|
490
|
|
|
(158
|
)
|
||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
128,725
|
|
|
(16,448
|
)
|
|
14,531
|
|
|
(2,701
|
)
|
|
143,256
|
|
|
(19,149
|
)
|
||||||
Canada
|
1,956
|
|
|
(355
|
)
|
|
1,097
|
|
|
(722
|
)
|
|
3,053
|
|
|
(1,077
|
)
|
||||||
Other international
|
9,458
|
|
|
(1,638
|
)
|
|
6,151
|
|
|
(2,269
|
)
|
|
15,609
|
|
|
(3,907
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity
|
185,726
|
|
|
(23,385
|
)
|
|
79,855
|
|
|
(20,590
|
)
|
|
265,581
|
|
|
(43,975
|
)
|
||||||
Fixed income
|
108,984
|
|
|
(5,052
|
)
|
|
27,048
|
|
|
(8,040
|
)
|
|
136,032
|
|
|
(13,092
|
)
|
||||||
Commingled funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed income
|
68,578
|
|
|
(442
|
)
|
|
—
|
|
|
—
|
|
|
68,578
|
|
|
(442
|
)
|
||||||
Private equity
|
—
|
|
|
—
|
|
|
18,713
|
|
|
(6,467
|
)
|
|
18,713
|
|
|
(6,467
|
)
|
||||||
Total temporarily impaired securities
|
$
|
548,240
|
|
|
$
|
(48,832
|
)
|
|
$
|
167,817
|
|
|
$
|
(41,727
|
)
|
|
$
|
716,057
|
|
|
$
|
(90,559
|
)
|
|
December 31, 2014
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Fair
Market
Value
|
|
Unrealized
Losses
|
|
Fair
Market
Value
|
|
Unrealized
Losses
|
|
Fair
Market
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury
|
$
|
32,243
|
|
|
$
|
(412
|
)
|
|
$
|
4,978
|
|
|
$
|
(43
|
)
|
|
$
|
37,221
|
|
|
$
|
(455
|
)
|
Canadian government
|
2,894
|
|
|
(52
|
)
|
|
14,904
|
|
|
(822
|
)
|
|
17,798
|
|
|
(874
|
)
|
||||||
Corporate
|
4,988
|
|
|
(56
|
)
|
|
2,420
|
|
|
(70
|
)
|
|
7,408
|
|
|
(126
|
)
|
||||||
Residential mortgage-backed
|
217
|
|
|
(10
|
)
|
|
106
|
|
|
(2
|
)
|
|
323
|
|
|
(12
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Preferred stock
|
26
|
|
|
(113
|
)
|
|
—
|
|
|
—
|
|
|
26
|
|
|
(113
|
)
|
||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
126,527
|
|
|
(7,403
|
)
|
|
438
|
|
|
(2
|
)
|
|
126,965
|
|
|
(7,405
|
)
|
||||||
Canada
|
1,752
|
|
|
(379
|
)
|
|
1,085
|
|
|
(516
|
)
|
|
2,837
|
|
|
(895
|
)
|
||||||
Other international
|
19,593
|
|
|
(1,557
|
)
|
|
2
|
|
|
(3
|
)
|
|
19,595
|
|
|
(1,560
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity
|
233,827
|
|
|
(13,219
|
)
|
|
23,717
|
|
|
(2,682
|
)
|
|
257,544
|
|
|
(15,901
|
)
|
||||||
Fixed income
|
112,160
|
|
|
(3,128
|
)
|
|
11,452
|
|
|
(448
|
)
|
|
123,612
|
|
|
(3,576
|
)
|
||||||
Private equity
|
203
|
|
|
(461
|
)
|
|
13,870
|
|
|
(8,957
|
)
|
|
14,073
|
|
|
(9,418
|
)
|
||||||
Other
|
5
|
|
|
(11
|
)
|
|
464
|
|
|
(93
|
)
|
|
469
|
|
|
(104
|
)
|
||||||
Total temporarily impaired securities
|
$
|
534,435
|
|
|
$
|
(26,801
|
)
|
|
$
|
73,436
|
|
|
$
|
(13,638
|
)
|
|
$
|
607,871
|
|
|
$
|
(40,439
|
)
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
(In thousands)
|
||||||||||
Beginning balance — Deferred preneed funeral revenue, net
|
$
|
540,164
|
|
|
$
|
551,948
|
|
|
$
|
535,136
|
|
Net preneed contract sales
|
232,628
|
|
|
198,195
|
|
|
144,202
|
|
|||
(Divestitures) acquisitions of businesses, net
|
(2,895
|
)
|
|
(21,639
|
)
|
|
298,047
|
|
|||
Net investment (losses) earnings
(1)
|
(37,208
|
)
|
|
24,256
|
|
|
126,428
|
|
|||
Recognized deferred preneed revenue
|
(276,359
|
)
|
|
(258,534
|
)
|
|
(200,680
|
)
|
|||
Change in cancellation allowance
|
11,675
|
|
|
21,272
|
|
|
(5,670
|
)
|
|||
Change in deferred preneed receipts held in trust
|
90,351
|
|
|
26,131
|
|
|
(343,878
|
)
|
|||
Effect of foreign currency and other
|
(459
|
)
|
|
(1,465
|
)
|
|
(1,637
|
)
|
|||
Ending balance — Deferred preneed funeral revenue, net
|
$
|
557,897
|
|
|
$
|
540,164
|
|
|
$
|
551,948
|
|
(1)
|
Includes both realized and unrealized investment earnings.
|
4.
|
Preneed Cemetery Activities
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
(In thousands)
|
|
|
||||||
Deposits
|
$
|
153,252
|
|
|
$
|
129,581
|
|
|
$
|
106,185
|
|
Withdrawals
|
$
|
163,732
|
|
|
$
|
150,064
|
|
|
$
|
119,576
|
|
Purchases of available-for-sale securities
(1)
|
$
|
625,648
|
|
|
$
|
1,786,800
|
|
|
$
|
477,772
|
|
Sales of available-for-sale securities
(1)
|
$
|
628,484
|
|
|
$
|
1,842,417
|
|
|
$
|
498,852
|
|
Realized gains from sales of available-for-sale securities
(1)
|
$
|
51,510
|
|
|
$
|
271,507
|
|
|
$
|
101,337
|
|
Realized losses from sales of available-for-sale securities
(1)
|
$
|
(40,092
|
)
|
|
$
|
(138,473
|
)
|
|
$
|
(14,593
|
)
|
(1)
|
The increase in activity in
2014
is the result of changing the legal structure of the trust investments.
|
|
2015
|
|
2014
|
||||
|
(In thousands)
|
||||||
Trust investments, at market
|
$
|
1,343,916
|
|
|
$
|
1,404,298
|
|
Cash and cash equivalents
|
118,583
|
|
|
122,355
|
|
||
Trust investments
|
1,462,499
|
|
|
1,526,653
|
|
||
Receivables from customers
|
958,503
|
|
|
881,082
|
|
||
Unearned finance charges
|
(31,332
|
)
|
|
(31,524
|
)
|
||
|
2,389,670
|
|
|
2,376,211
|
|
||
Allowance for cancellation
|
(71,503
|
)
|
|
(69,542
|
)
|
||
Preneed cemetery receivables and trust investments
|
$
|
2,318,167
|
|
|
$
|
2,306,669
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
(In thousands)
|
|
|
||||||
Beginning balance — Preneed cemetery receivables and trust investments
|
$
|
2,306,669
|
|
|
$
|
2,292,348
|
|
|
$
|
1,826,835
|
|
Net preneed contract sales
|
799,497
|
|
|
688,336
|
|
|
562,433
|
|
|||
Acquisitions (divestitures) of businesses, net
|
4,404
|
|
|
(10,898
|
)
|
|
190,870
|
|
|||
Net undistributed investment (losses) earnings
(1)
|
(42,189
|
)
|
|
(18,038
|
)
|
|
203,499
|
|
|||
Cash receipts from customers, net of refunds
|
(716,686
|
)
|
|
(615,489
|
)
|
|
(471,710
|
)
|
|||
Deposits to trust
|
153,252
|
|
|
129,581
|
|
|
106,185
|
|
|||
Maturities, deliveries, and associated earnings
|
(163,732
|
)
|
|
(150,064
|
)
|
|
(119,576
|
)
|
|||
Change in cancellation allowance
|
(2,046
|
)
|
|
843
|
|
|
3,002
|
|
|||
Effect of foreign currency and other
|
(21,002
|
)
|
|
(9,950
|
)
|
|
(9,190
|
)
|
|||
Ending balance — Preneed cemetery receivables and trust investments
|
$
|
2,318,167
|
|
|
$
|
2,306,669
|
|
|
$
|
2,292,348
|
|
(1)
|
Includes both realized and unrealized investment (losses) earnings.
|
|
|
December 31, 2015
|
||||||||||||||
|
Fair Value Hierarchy Level
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury
|
2
|
$
|
69,746
|
|
|
$
|
25
|
|
|
$
|
(1,437
|
)
|
|
$
|
68,334
|
|
Canadian government
|
2
|
24,648
|
|
|
183
|
|
|
(169
|
)
|
|
24,662
|
|
||||
Corporate
|
2
|
5,112
|
|
|
26
|
|
|
(118
|
)
|
|
5,020
|
|
||||
Residential mortgage-backed
|
2
|
129
|
|
|
3
|
|
|
(3
|
)
|
|
129
|
|
||||
Asset-backed
|
2
|
170
|
|
|
15
|
|
|
—
|
|
|
185
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States
|
1
|
532,026
|
|
|
44,181
|
|
|
(32,037
|
)
|
|
544,170
|
|
||||
Canada
|
1
|
8,984
|
|
|
3,858
|
|
|
(891
|
)
|
|
11,951
|
|
||||
Other international
|
1
|
50,053
|
|
|
4,207
|
|
|
(5,799
|
)
|
|
48,461
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity
|
1
|
356,798
|
|
|
1,620
|
|
|
(49,642
|
)
|
|
308,776
|
|
||||
Fixed income
|
1
|
203,983
|
|
|
92
|
|
|
(18,526
|
)
|
|
185,549
|
|
||||
Commingled funds:
|
|
|
|
|
|
|
|
|
||||||||
Fixed income
|
2
|
108,883
|
|
|
—
|
|
|
(570
|
)
|
|
108,313
|
|
||||
Private equity
|
3
|
34,810
|
|
|
5,803
|
|
|
(4,502
|
)
|
|
36,111
|
|
||||
Other
|
3
|
1,982
|
|
|
273
|
|
|
—
|
|
|
2,255
|
|
||||
Trust investments
|
|
$
|
1,397,324
|
|
|
$
|
60,286
|
|
|
$
|
(113,694
|
)
|
|
$
|
1,343,916
|
|
|
|
December 31, 2014
|
||||||||||||||
|
Fair Value Hierarchy Level
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury
|
2
|
$
|
63,447
|
|
|
$
|
257
|
|
|
$
|
(605
|
)
|
|
$
|
63,099
|
|
Canadian government
|
2
|
21,687
|
|
|
261
|
|
|
(134
|
)
|
|
21,814
|
|
||||
Corporate
|
2
|
8,725
|
|
|
122
|
|
|
(116
|
)
|
|
8,731
|
|
||||
Residential mortgage-backed
|
2
|
111
|
|
|
3
|
|
|
(1
|
)
|
|
113
|
|
||||
Asset-backed
|
2
|
170
|
|
|
16
|
|
|
—
|
|
|
186
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Preferred stock
|
2
|
10
|
|
|
1
|
|
|
—
|
|
|
11
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States
|
1
|
557,955
|
|
|
22,746
|
|
|
(11,706
|
)
|
|
568,995
|
|
||||
Canada
|
1
|
10,962
|
|
|
5,011
|
|
|
(841
|
)
|
|
15,132
|
|
||||
Other international
|
1
|
55,632
|
|
|
1,605
|
|
|
(2,395
|
)
|
|
54,842
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity
|
1
|
344,443
|
|
|
4,244
|
|
|
(18,430
|
)
|
|
330,257
|
|
||||
Fixed income
|
1
|
314,600
|
|
|
679
|
|
|
(4,702
|
)
|
|
310,577
|
|
||||
Private equity
|
3
|
32,342
|
|
|
3,185
|
|
|
(6,183
|
)
|
|
29,344
|
|
||||
Other
|
3
|
1,082
|
|
|
186
|
|
|
(71
|
)
|
|
1,197
|
|
||||
Trust investments
|
|
$
|
1,411,166
|
|
|
$
|
38,316
|
|
|
$
|
(45,184
|
)
|
|
$
|
1,404,298
|
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||||
|
Private Equity
|
|
Other
|
|
Private Equity
|
|
Other
|
|
Private Equity
|
|
Other
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fair value, beginning balance at January 1,
|
$
|
29,344
|
|
|
$
|
1,197
|
|
|
$
|
26,844
|
|
|
$
|
1,245
|
|
|
$
|
17,687
|
|
|
$
|
450
|
|
Net unrealized gains (losses) included in
Accumulated other comprehensive income
(1)
|
5,723
|
|
|
228
|
|
|
3,313
|
|
|
(73
|
)
|
|
15,420
|
|
|
1,218
|
|
||||||
Net realized losses included in
Other income (expense), net
(2)
|
(45
|
)
|
|
(15
|
)
|
|
(43
|
)
|
|
(7
|
)
|
|
(48
|
)
|
|
(5
|
)
|
||||||
Purchases
|
—
|
|
|
1,328
|
|
|
—
|
|
|
196
|
|
|
—
|
|
|
—
|
|
||||||
Contributions
|
7,935
|
|
|
1,390
|
|
|
6,582
|
|
|
4
|
|
|
3,430
|
|
|
—
|
|
||||||
Distributions and other
|
(6,846
|
)
|
|
(1,873
|
)
|
|
(7,352
|
)
|
|
(168
|
)
|
|
(9,645
|
)
|
|
(418
|
)
|
||||||
Fair value, ending balance at December 31,
|
$
|
36,111
|
|
|
$
|
2,255
|
|
|
$
|
29,344
|
|
|
$
|
1,197
|
|
|
$
|
26,844
|
|
|
$
|
1,245
|
|
(1)
|
All unrealized gains recognized in
Accumulated other comprehensive income
for our cemetery merchandise and service trust investments are attributable to our preneed customers and are offset by a corresponding reclassification in
Accumulated other comprehensive income
to
Deferred preneed receipts held in trust
. See Note 6 for further information related to our
Deferred preneed receipts held in trust
.
|
(2)
|
All losses recognized in
Other income (expense), net
for our cemetery merchandise and service trust investments are attributable to our preneed customers and are offset by a corresponding reclassification in
Other income (expense), net
to
Deferred preneed receipts held in trust
. See Note 6 for further information related to our
Deferred preneed receipts held in trust
.
|
|
Fair Value
|
||
|
(In thousands)
|
||
Due in one year or less
|
$
|
26,698
|
|
Due in one to five years
|
25,843
|
|
|
Due in five to ten years
|
27,094
|
|
|
Thereafter
|
18,695
|
|
|
|
$
|
98,330
|
|
|
December 31, 2015
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury
|
$
|
52,533
|
|
|
$
|
(1,435
|
)
|
|
$
|
21
|
|
|
$
|
(2
|
)
|
|
$
|
52,554
|
|
|
$
|
(1,437
|
)
|
Canadian government
|
16,039
|
|
|
(105
|
)
|
|
841
|
|
|
(64
|
)
|
|
16,880
|
|
|
(169
|
)
|
||||||
Corporate
|
1,754
|
|
|
(22
|
)
|
|
2,347
|
|
|
(96
|
)
|
|
4,101
|
|
|
(118
|
)
|
||||||
Residential mortgage-backed
|
42
|
|
|
(1
|
)
|
|
18
|
|
|
(2
|
)
|
|
60
|
|
|
(3
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
198,843
|
|
|
(26,038
|
)
|
|
21,355
|
|
|
(5,999
|
)
|
|
220,198
|
|
|
(32,037
|
)
|
||||||
Canada
|
470
|
|
|
(6
|
)
|
|
1,430
|
|
|
(885
|
)
|
|
1,900
|
|
|
(891
|
)
|
||||||
Other international
|
15,567
|
|
|
(2,507
|
)
|
|
9,412
|
|
|
(3,292
|
)
|
|
24,979
|
|
|
(5,799
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity
|
207,349
|
|
|
(25,991
|
)
|
|
86,720
|
|
|
(23,651
|
)
|
|
294,069
|
|
|
(49,642
|
)
|
||||||
Fixed income
|
139,749
|
|
|
(6,322
|
)
|
|
44,550
|
|
|
(12,204
|
)
|
|
184,299
|
|
|
(18,526
|
)
|
||||||
Commingled funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed income
|
108,347
|
|
|
(570
|
)
|
|
—
|
|
|
—
|
|
|
108,347
|
|
|
(570
|
)
|
||||||
Private equity
|
—
|
|
|
—
|
|
|
9,526
|
|
|
(4,502
|
)
|
|
9,526
|
|
|
(4,502
|
)
|
||||||
Total temporarily impaired securities
|
$
|
740,693
|
|
|
$
|
(62,997
|
)
|
|
$
|
176,220
|
|
|
$
|
(50,697
|
)
|
|
$
|
916,913
|
|
|
$
|
(113,694
|
)
|
|
December 31, 2014
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury
|
$
|
45,072
|
|
|
$
|
(605
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
45,072
|
|
|
$
|
(605
|
)
|
Canadian government
|
—
|
|
|
—
|
|
|
4,858
|
|
|
(134
|
)
|
|
4,858
|
|
|
(134
|
)
|
||||||
Corporate
|
2,017
|
|
|
(61
|
)
|
|
1,936
|
|
|
(55
|
)
|
|
3,953
|
|
|
(116
|
)
|
||||||
Residential mortgage-backed
|
33
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
33
|
|
|
(1
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
192,015
|
|
|
(11,706
|
)
|
|
585
|
|
|
—
|
|
|
192,600
|
|
|
(11,706
|
)
|
||||||
Canada
|
2,069
|
|
|
(319
|
)
|
|
778
|
|
|
(522
|
)
|
|
2,847
|
|
|
(841
|
)
|
||||||
Other international
|
28,308
|
|
|
(2,395
|
)
|
|
—
|
|
|
—
|
|
|
28,308
|
|
|
(2,395
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity
|
303,211
|
|
|
(18,329
|
)
|
|
1,577
|
|
|
(101
|
)
|
|
304,788
|
|
|
(18,430
|
)
|
||||||
Fixed income
|
159,572
|
|
|
(4,106
|
)
|
|
15,113
|
|
|
(596
|
)
|
|
174,685
|
|
|
(4,702
|
)
|
||||||
Private equity
|
88
|
|
|
(100
|
)
|
|
7,518
|
|
|
(6,083
|
)
|
|
7,606
|
|
|
(6,183
|
)
|
||||||
Other
|
2
|
|
|
(3
|
)
|
|
259
|
|
|
(68
|
)
|
|
261
|
|
|
(71
|
)
|
||||||
Total temporarily impaired securities
|
$
|
732,387
|
|
|
$
|
(37,625
|
)
|
|
$
|
32,624
|
|
|
$
|
(7,559
|
)
|
|
$
|
765,011
|
|
|
$
|
(45,184
|
)
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
(In thousands)
|
||||||||||
Beginning balance — Deferred preneed cemetery revenue
|
$
|
1,062,381
|
|
|
$
|
1,016,275
|
|
|
$
|
861,148
|
|
Net preneed and atneed deferred sales
|
561,899
|
|
|
531,768
|
|
|
396,264
|
|
|||
Acquisitions (Divestitures) of businesses, net
|
2,357
|
|
|
(25,071
|
)
|
|
212,624
|
|
|||
Net investment (losses) earnings
(1)
|
(42,806
|
)
|
|
(22,378
|
)
|
|
201,941
|
|
|||
Recognized deferred preneed revenue
|
(504,064
|
)
|
|
(493,739
|
)
|
|
(386,632
|
)
|
|||
Change in cancellation allowance
|
(8,048
|
)
|
|
3,833
|
|
|
18,358
|
|
|||
Change in deferred preneed receipts held in trust
|
52,050
|
|
|
55,636
|
|
|
(298,337
|
)
|
|||
Effect of foreign currency and other
|
(3,768
|
)
|
|
(3,943
|
)
|
|
10,909
|
|
|||
Ending balance — Deferred preneed cemetery revenue
|
$
|
1,120,001
|
|
|
$
|
1,062,381
|
|
|
$
|
1,016,275
|
|
(1)
|
Includes both realized and unrealized investment (losses) earnings.
|
5.
|
Cemetery Perpetual Care Trusts
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
(In thousands)
|
||||||||||
Deposits
|
$
|
38,883
|
|
|
$
|
42,220
|
|
|
$
|
26,501
|
|
Withdrawals
|
$
|
40,447
|
|
|
$
|
46,981
|
|
|
$
|
33,557
|
|
Purchases of available-for-sale securities
(1)
|
$
|
247,658
|
|
|
$
|
1,306,314
|
|
|
$
|
139,439
|
|
Sales of available-for-sale securities
(1)
|
$
|
175,057
|
|
|
$
|
1,396,669
|
|
|
$
|
99,701
|
|
Realized gains from sales of available-for-sale securities
(1)
|
$
|
6,933
|
|
|
$
|
134,259
|
|
|
$
|
17,916
|
|
Realized losses from sales of available-for-sale securities
(1)
|
$
|
(7,708
|
)
|
|
$
|
(51,093
|
)
|
|
$
|
(2,738
|
)
|
(1)
|
The increase in activity in
2014
is the result of changing the legal structure of the trust investments.
|
|
2015
|
|
2014
|
||||
|
(In thousands)
|
||||||
Trust investments, at market
|
$
|
1,232,592
|
|
|
$
|
1,192,966
|
|
Cash and cash equivalents
|
86,835
|
|
|
148,410
|
|
||
Cemetery perpetual care trust investments
|
$
|
1,319,427
|
|
|
$
|
1,341,376
|
|
|
|
December 31, 2015
|
||||||||||||||
|
Fair Value Hierarchy Level
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury
|
2
|
$
|
3,636
|
|
|
$
|
20
|
|
|
$
|
(81
|
)
|
|
$
|
3,575
|
|
Canadian government
|
2
|
32,477
|
|
|
321
|
|
|
(266
|
)
|
|
32,532
|
|
||||
Corporate
|
2
|
12,694
|
|
|
149
|
|
|
(284
|
)
|
|
12,559
|
|
||||
Residential mortgage-backed
|
2
|
934
|
|
|
13
|
|
|
(9
|
)
|
|
938
|
|
||||
Asset-backed
|
2
|
660
|
|
|
5
|
|
|
(31
|
)
|
|
634
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Preferred stock
|
2
|
5,850
|
|
|
55
|
|
|
(159
|
)
|
|
5,746
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States
|
1
|
231,012
|
|
|
15,224
|
|
|
(10,898
|
)
|
|
235,338
|
|
||||
Canada
|
1
|
5,648
|
|
|
2,112
|
|
|
(606
|
)
|
|
7,154
|
|
||||
Other international
|
1
|
14,820
|
|
|
160
|
|
|
(2,390
|
)
|
|
12,590
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity
|
1
|
21,783
|
|
|
3,138
|
|
|
(1,850
|
)
|
|
23,071
|
|
||||
Fixed income
|
1
|
890,013
|
|
|
530
|
|
|
(63,913
|
)
|
|
826,630
|
|
||||
Private equity
|
3
|
62,549
|
|
|
1,942
|
|
|
(8,096
|
)
|
|
56,395
|
|
||||
Other
|
3
|
13,709
|
|
|
1,721
|
|
|
—
|
|
|
15,430
|
|
||||
Cemetery perpetual care trust investments
|
|
$
|
1,295,785
|
|
|
$
|
25,390
|
|
|
$
|
(88,583
|
)
|
|
$
|
1,232,592
|
|
|
|
December 31, 2014
|
||||||||||||||
|
Fair Value Hierarchy Level
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury
|
2
|
$
|
794
|
|
|
$
|
40
|
|
|
$
|
(4
|
)
|
|
$
|
830
|
|
Canadian government
|
2
|
31,993
|
|
|
442
|
|
|
(233
|
)
|
|
32,202
|
|
||||
Corporate
|
2
|
16,762
|
|
|
344
|
|
|
(210
|
)
|
|
16,896
|
|
||||
Residential mortgage-backed
|
2
|
910
|
|
|
15
|
|
|
(6
|
)
|
|
919
|
|
||||
Asset-backed
|
2
|
661
|
|
|
10
|
|
|
(4
|
)
|
|
667
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Preferred stock
|
2
|
4,439
|
|
|
60
|
|
|
(12
|
)
|
|
4,487
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States
|
1
|
225,129
|
|
|
9,340
|
|
|
(4,881
|
)
|
|
229,588
|
|
||||
Canada
|
1
|
7,419
|
|
|
2,737
|
|
|
(596
|
)
|
|
9,560
|
|
||||
Other international
|
1
|
8,102
|
|
|
90
|
|
|
(399
|
)
|
|
7,793
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity
|
1
|
17,310
|
|
|
3,264
|
|
|
(93
|
)
|
|
20,481
|
|
||||
Fixed income
|
1
|
846,230
|
|
|
1,580
|
|
|
(14,263
|
)
|
|
833,547
|
|
||||
Private equity
|
3
|
34,288
|
|
|
408
|
|
|
(10,788
|
)
|
|
23,908
|
|
||||
Other
|
3
|
13,526
|
|
|
1,094
|
|
|
(2,532
|
)
|
|
12,088
|
|
||||
Cemetery perpetual care trust investments
|
|
$
|
1,207,563
|
|
|
$
|
19,424
|
|
|
$
|
(34,021
|
)
|
|
$
|
1,192,966
|
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||||
|
Private Equity
|
|
Other
|
|
Private Equity
|
|
Other
|
|
Private Equity
|
|
Other
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fair value, beginning balance at January 1,
|
$
|
23,908
|
|
|
$
|
12,088
|
|
|
$
|
19,779
|
|
|
$
|
11,590
|
|
|
$
|
11,122
|
|
|
$
|
7,659
|
|
Net unrealized gains (losses) included in
Accumulated other comprehensive income
(1)
|
10,793
|
|
|
(828
|
)
|
|
1,216
|
|
|
2,145
|
|
|
6,897
|
|
|
4,081
|
|
||||||
Net realized losses included in
Other income (expense), net
(2)
|
(20
|
)
|
|
(24
|
)
|
|
(70
|
)
|
|
(44
|
)
|
|
(142
|
)
|
|
(76
|
)
|
||||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
||||||
Contributions
|
25,836
|
|
|
5,829
|
|
|
10,461
|
|
|
—
|
|
|
3,706
|
|
|
—
|
|
||||||
Distributions and other
|
(4,122
|
)
|
|
(1,635
|
)
|
|
(7,478
|
)
|
|
(1,586
|
)
|
|
(1,841
|
)
|
|
(508
|
)
|
||||||
Acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
434
|
|
||||||
Fair value, ending balance at December 31,
|
$
|
56,395
|
|
|
$
|
15,430
|
|
|
$
|
23,908
|
|
|
$
|
12,088
|
|
|
$
|
19,779
|
|
|
$
|
11,590
|
|
(1)
|
All unrealized gains (losses) recognized in
Accumulated other comprehensive income
for our cemetery perpetual care trust investments are offset by a corresponding reclassification in
Accumulated other comprehensive income
to
Care trusts’ corpus
. See Note 6 for further information related to our
Care trusts’ corpus
.
|
(2)
|
All losses recognized in
Other income (expense), net
for our cemetery perpetual care trust investments are offset by a corresponding reclassification in
Other income (expense), net
to
Care trusts’ corpus
. See Note 6 for further information related to our
Care trusts’ corpus
.
|
|
Fair Value
|
||
|
(In thousands)
|
||
Due in one year or less
|
$
|
27,700
|
|
Due in one to five years
|
21,107
|
|
|
Due in five to ten years
|
448
|
|
|
Thereafter
|
983
|
|
|
|
$
|
50,238
|
|
|
December 31, 2015
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Fair
Market
Value
|
|
Unrealized
Losses
|
|
Fair
Market
Value
|
|
Unrealized
Losses
|
|
Fair
Market
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury
|
$
|
3,275
|
|
|
$
|
(80
|
)
|
|
$
|
35
|
|
|
$
|
(1
|
)
|
|
$
|
3,310
|
|
|
$
|
(81
|
)
|
Canadian government
|
18,499
|
|
|
(164
|
)
|
|
1,371
|
|
|
(102
|
)
|
|
19,870
|
|
|
(266
|
)
|
||||||
Corporate
|
5,163
|
|
|
(134
|
)
|
|
4,147
|
|
|
(150
|
)
|
|
9,310
|
|
|
(284
|
)
|
||||||
Residential mortgage-backed
|
303
|
|
|
(3
|
)
|
|
117
|
|
|
(6
|
)
|
|
420
|
|
|
(9
|
)
|
||||||
Asset-backed
|
145
|
|
|
(12
|
)
|
|
360
|
|
|
(19
|
)
|
|
505
|
|
|
(31
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Preferred stock
|
4,029
|
|
|
(159
|
)
|
|
—
|
|
|
—
|
|
|
4,029
|
|
|
(159
|
)
|
||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
81,624
|
|
|
(7,793
|
)
|
|
14,900
|
|
|
(3,105
|
)
|
|
96,524
|
|
|
(10,898
|
)
|
||||||
Canada
|
702
|
|
|
(31
|
)
|
|
1,026
|
|
|
(575
|
)
|
|
1,728
|
|
|
(606
|
)
|
||||||
Other international
|
8,734
|
|
|
(940
|
)
|
|
2,347
|
|
|
(1,450
|
)
|
|
11,081
|
|
|
(2,390
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity
|
4,580
|
|
|
(606
|
)
|
|
1,258
|
|
|
(1,244
|
)
|
|
5,838
|
|
|
(1,850
|
)
|
||||||
Fixed income
|
519,981
|
|
|
(18,205
|
)
|
|
294,309
|
|
|
(45,708
|
)
|
|
814,290
|
|
|
(63,913
|
)
|
||||||
Private equity
|
10,594
|
|
|
(61
|
)
|
|
24,556
|
|
|
(8,035
|
)
|
|
35,150
|
|
|
(8,096
|
)
|
||||||
Total temporarily impaired securities
|
$
|
657,629
|
|
|
$
|
(28,188
|
)
|
|
$
|
344,426
|
|
|
$
|
(60,395
|
)
|
|
$
|
1,002,055
|
|
|
$
|
(88,583
|
)
|
|
December 31, 2014
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Fair
Market
Value
|
|
Unrealized
Losses
|
|
Fair
Market
Value
|
|
Unrealized
Losses
|
|
Fair
Market
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury
|
$
|
497
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
497
|
|
|
$
|
(4
|
)
|
Canadian government
|
—
|
|
|
—
|
|
|
7,825
|
|
|
(233
|
)
|
|
7,825
|
|
|
(233
|
)
|
||||||
Corporate
|
4,656
|
|
|
(108
|
)
|
|
3,198
|
|
|
(102
|
)
|
|
7,854
|
|
|
(210
|
)
|
||||||
Residential mortgage-backed
|
256
|
|
|
(5
|
)
|
|
69
|
|
|
(1
|
)
|
|
325
|
|
|
(6
|
)
|
||||||
Asset-backed
|
373
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
373
|
|
|
(4
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Preferred stock
|
2,224
|
|
|
(11
|
)
|
|
49
|
|
|
(1
|
)
|
|
2,273
|
|
|
(12
|
)
|
||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
United States
|
100,370
|
|
|
(4,803
|
)
|
|
419
|
|
|
(78
|
)
|
|
100,789
|
|
|
(4,881
|
)
|
||||||
Canada
|
2,418
|
|
|
(244
|
)
|
|
757
|
|
|
(352
|
)
|
|
3,175
|
|
|
(596
|
)
|
||||||
Other international
|
4,444
|
|
|
(399
|
)
|
|
—
|
|
|
—
|
|
|
4,444
|
|
|
(399
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity
|
2,601
|
|
|
(85
|
)
|
|
153
|
|
|
(8
|
)
|
|
2,754
|
|
|
(93
|
)
|
||||||
Fixed income
|
576,890
|
|
|
(14,177
|
)
|
|
2,581
|
|
|
(86
|
)
|
|
579,471
|
|
|
(14,263
|
)
|
||||||
Private equity
|
9,213
|
|
|
(798
|
)
|
|
14,254
|
|
|
(9,990
|
)
|
|
23,467
|
|
|
(10,788
|
)
|
||||||
Other
|
4,069
|
|
|
(352
|
)
|
|
6,276
|
|
|
(2,180
|
)
|
|
10,345
|
|
|
(2,532
|
)
|
||||||
Total temporarily impaired securities
|
$
|
708,011
|
|
|
$
|
(20,990
|
)
|
|
$
|
35,581
|
|
|
$
|
(13,031
|
)
|
|
$
|
743,592
|
|
|
$
|
(34,021
|
)
|
6.
|
Deferred Preneed Receipts Held in Trust and Care Trusts’ Corpus
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
|
Preneed
Funeral
|
|
Preneed
Cemetery
|
|
Total
|
|
Preneed
Funeral
|
|
Preneed
Cemetery
|
|
Total
|
||||||||||||
|
|
(In thousands)
|
|
|
|
(In thousands)
|
|
||||||||||||||||
Trust investments
|
$
|
1,515,113
|
|
|
$
|
1,462,499
|
|
|
$
|
2,977,612
|
|
|
$
|
1,628,875
|
|
|
$
|
1,526,653
|
|
|
$
|
3,155,528
|
|
Accrued trust operating payables and other
|
(1,381
|
)
|
|
(2,845
|
)
|
|
(4,226
|
)
|
|
(2,487
|
)
|
|
(4,157
|
)
|
|
(6,644
|
)
|
||||||
Deferred preneed receipts held in trust
|
$
|
1,513,732
|
|
|
$
|
1,459,654
|
|
|
$
|
2,973,386
|
|
|
$
|
1,626,388
|
|
|
$
|
1,522,496
|
|
|
$
|
3,148,884
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||
|
(In thousands)
|
||||||
Cemetery perpetual care trust investments
|
$
|
1,319,427
|
|
|
$
|
1,341,376
|
|
Accrued trust operating payables and other
|
137
|
|
|
(13,718
|
)
|
||
Care trusts’ corpus
|
$
|
1,319,564
|
|
|
$
|
1,327,658
|
|
|
Year Ended December 31, 2015
|
||||||||||||||||||
|
Funeral
Trusts
|
|
Cemetery
Trusts
|
|
Cemetery Perpetual
Care Trusts
|
|
Other, Net
|
|
Total
|
||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|||||||||
Realized gains
|
$
|
42,034
|
|
|
$
|
51,510
|
|
|
$
|
6,933
|
|
|
$
|
—
|
|
|
$
|
100,477
|
|
Realized losses
|
(31,403
|
)
|
|
(40,092
|
)
|
|
(7,708
|
)
|
|
—
|
|
|
(79,203
|
)
|
|||||
Impairment charges
|
(3,519
|
)
|
|
(4,345
|
)
|
|
(1,812
|
)
|
|
—
|
|
|
(9,676
|
)
|
|||||
Interest, dividend, and other ordinary income
|
25,952
|
|
|
27,089
|
|
|
56,253
|
|
|
—
|
|
|
109,294
|
|
|||||
Trust expenses and income taxes
|
(21,852
|
)
|
|
(31,472
|
)
|
|
(32,643
|
)
|
|
—
|
|
|
(85,967
|
)
|
|||||
Net trust investment income
|
11,212
|
|
|
2,690
|
|
|
21,023
|
|
|
—
|
|
|
34,925
|
|
|||||
Reclassification to deferred preneed receipts held in trust and care trusts’ corpus
|
(11,212
|
)
|
|
(2,690
|
)
|
|
(21,023
|
)
|
|
—
|
|
|
(34,925
|
)
|
|||||
Other expense, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(113
|
)
|
|
(113
|
)
|
|||||
Total other expense, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(113
|
)
|
|
$
|
(113
|
)
|
|
Year Ended December 31, 2014
|
||||||||||||||||||
|
Funeral
Trusts
|
|
Cemetery
Trusts
|
|
Cemetery Perpetual
Care Trusts
|
|
Other, Net
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Realized gains
|
$
|
168,567
|
|
|
$
|
271,507
|
|
|
$
|
134,259
|
|
|
$
|
—
|
|
|
$
|
574,333
|
|
Realized losses
|
(113,748
|
)
|
|
(138,473
|
)
|
|
(51,093
|
)
|
|
—
|
|
|
(303,314
|
)
|
|||||
Impairment charges
|
(41,846
|
)
|
|
(60,040
|
)
|
|
(8,072
|
)
|
|
—
|
|
|
(109,958
|
)
|
|||||
Interest, dividend, and other ordinary income
|
22,668
|
|
|
17,597
|
|
|
52,126
|
|
|
—
|
|
|
92,391
|
|
|||||
Trust expenses and income taxes
|
(19,590
|
)
|
|
(20,833
|
)
|
|
(34,243
|
)
|
|
—
|
|
|
(74,666
|
)
|
|||||
Net trust investment income
|
16,051
|
|
|
69,758
|
|
|
92,977
|
|
|
—
|
|
|
178,786
|
|
|||||
Reclassification to deferred preneed receipts held in trust and care trusts’ corpus
|
(16,051
|
)
|
|
(69,758
|
)
|
|
(92,977
|
)
|
|
—
|
|
|
(178,786
|
)
|
|||||
Other income, net
|
—
|
|
|
—
|
|
|
—
|
|
|
1,780
|
|
|
1,780
|
|
|||||
Total other income, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,780
|
|
|
$
|
1,780
|
|
|
December 31, 2013
|
||||||||||||||||||
|
Funeral
Trusts
|
|
Cemetery
Trusts
|
|
Cemetery Perpetual
Care Trusts
|
|
Other, Net
|
|
Total
|
||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||
Realized gains
|
$
|
65,011
|
|
|
$
|
101,337
|
|
|
$
|
17,916
|
|
|
$
|
—
|
|
|
$
|
184,264
|
|
Realized losses
|
(9,732
|
)
|
|
(14,593
|
)
|
|
(2,738
|
)
|
|
—
|
|
|
(27,063
|
)
|
|||||
Impairment charges
|
(829
|
)
|
|
(1,575
|
)
|
|
(192
|
)
|
|
—
|
|
|
(2,596
|
)
|
|||||
Interest, dividend, and other ordinary income
|
24,912
|
|
|
20,527
|
|
|
41,269
|
|
|
—
|
|
|
86,708
|
|
|||||
Trust expenses and income taxes
|
(11,371
|
)
|
|
(14,633
|
)
|
|
(16,445
|
)
|
|
—
|
|
|
(42,449
|
)
|
|||||
Net trust investment income
|
67,991
|
|
|
91,063
|
|
|
39,810
|
|
|
—
|
|
|
198,864
|
|
|||||
Reclassification to deferred preneed receipts held in trust and care trusts’ corpus
|
(67,991
|
)
|
|
(91,063
|
)
|
|
(39,810
|
)
|
|
—
|
|
|
(198,864
|
)
|
|||||
Other expense, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(558
|
)
|
|
(558
|
)
|
|||||
Total other expense, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(558
|
)
|
|
$
|
(558
|
)
|
7.
|
Goodwill and Intangible Assets
|
|
2015
|
|
2014
|
||||||||||||||||||||
|
Funeral
|
|
Cemetery
|
|
Total
|
|
Funeral
|
|
Cemetery
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Balance as of January 1,
|
$
|
1,510,879
|
|
|
$
|
299,974
|
|
|
$
|
1,810,853
|
|
|
$
|
1,526,011
|
|
|
$
|
299,710
|
|
|
$
|
1,825,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase in goodwill related to acquisitions
|
6,460
|
|
|
6,201
|
|
|
12,661
|
|
|
292
|
|
|
3,238
|
|
|
3,530
|
|
||||||
Reduction of goodwill related to divestitures
|
(8,908
|
)
|
|
(262
|
)
|
|
(9,170
|
)
|
|
(5,959
|
)
|
|
(2,960
|
)
|
|
(8,919
|
)
|
||||||
Effect of foreign currency
|
(17,929
|
)
|
|
(75
|
)
|
|
(18,004
|
)
|
|
(9,465
|
)
|
|
(14
|
)
|
|
(9,479
|
)
|
||||||
Activity
|
(20,377
|
)
|
|
5,864
|
|
|
(14,513
|
)
|
|
(15,132
|
)
|
|
264
|
|
|
(14,868
|
)
|
||||||
Balance as of December 31,
|
$
|
1,490,502
|
|
|
$
|
305,838
|
|
|
$
|
1,796,340
|
|
|
$
|
1,510,879
|
|
|
$
|
299,974
|
|
|
$
|
1,810,853
|
|
|
Useful life
|
|
|
|
|
||||||
|
Minimum
|
|
Maximum
|
|
2015
|
|
2014
|
||||
|
(Years)
|
|
(In thousands)
|
||||||||
Amortizing intangibles:
|
|
|
|
|
|
|
|
||||
Covenants-not-to-compete
|
2
|
-
|
20
|
|
$
|
206,822
|
|
|
$
|
209,920
|
|
Customer relationships
|
10
|
-
|
20
|
|
154,364
|
|
|
148,351
|
|
||
Tradenames
|
5
|
-
|
5
|
|
12,750
|
|
|
12,750
|
|
||
Other
|
5
|
-
|
40
|
|
11,927
|
|
|
11,927
|
|
||
|
|
|
|
|
385,863
|
|
|
382,948
|
|
||
Less: Accumulated amortization
|
|
|
|
|
257,157
|
|
|
220,682
|
|
||
Amortizing intangibles, net
|
|
|
|
|
128,706
|
|
|
162,266
|
|
||
|
|
|
|
|
|
|
|
||||
Non-amortizing intangibles:
|
|
|
|
|
|
|
|
||||
Tradenames
|
|
|
Indefinite
|
|
230,659
|
|
|
220,875
|
|
||
Other
|
|
|
Indefinite
|
|
10,640
|
|
|
10,640
|
|
||
Non-amortizing intangibles
|
|
|
|
|
241,299
|
|
|
231,515
|
|
||
|
|
|
|
|
|
|
|
||||
Intangible assets, net
|
|
|
|
|
$
|
370,005
|
|
|
$
|
393,781
|
|
2016
|
$
|
14,490
|
|
2017
|
$
|
11,876
|
|
2018
|
$
|
11,119
|
|
2019
|
$
|
7,869
|
|
2020
|
$
|
6,772
|
|
8.
|
Income Taxes
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
(In thousands)
|
||||||||||
United States
|
$
|
331,622
|
|
|
$
|
360,800
|
|
|
$
|
199,374
|
|
Foreign
|
38,729
|
|
|
41,800
|
|
|
45,832
|
|
|||
|
$
|
370,351
|
|
|
$
|
402,600
|
|
|
$
|
245,206
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
(In thousands)
|
||||||||||
Current:
|
|
|
|
|
|
|
|
|
|||
United States
|
$
|
94,502
|
|
|
$
|
67,511
|
|
|
$
|
2,207
|
|
Foreign
|
9,270
|
|
|
10,859
|
|
|
12,445
|
|
|||
State
|
13,207
|
|
|
17,939
|
|
|
6,664
|
|
|||
Total current income taxes
|
116,979
|
|
|
96,309
|
|
|
21,316
|
|
|||
Deferred:
|
|
|
|
|
|
|
|
|
|||
United States
|
$
|
15,918
|
|
|
$
|
108,514
|
|
|
$
|
64,355
|
|
Foreign
|
(878
|
)
|
|
(653
|
)
|
|
58
|
|
|||
State
|
3,008
|
|
|
21,810
|
|
|
7,295
|
|
|||
Total deferred income taxes
|
18,048
|
|
|
129,671
|
|
|
71,708
|
|
|||
Total income taxes
|
$
|
135,027
|
|
|
$
|
225,980
|
|
|
$
|
93,024
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
(In thousands)
|
||||||||||
Computed tax provision at the applicable federal statutory income tax rate
|
$
|
129,623
|
|
|
$
|
140,910
|
|
|
$
|
86,002
|
|
State and local taxes, net of federal income tax benefits
|
10,542
|
|
|
25,736
|
|
|
8,221
|
|
|||
Dividends received deduction and tax exempt interest
|
(444
|
)
|
|
(1,612
|
)
|
|
(592
|
)
|
|||
Foreign jurisdiction differences
|
(5,183
|
)
|
|
(4,424
|
)
|
|
(3,685
|
)
|
|||
Permanent differences associated with dispositions
|
2,909
|
|
|
61,892
|
|
|
268
|
|
|||
Changes in uncertain tax positions
|
4,046
|
|
|
4,624
|
|
|
3,710
|
|
|||
Other
|
(6,466
|
)
|
|
(1,146
|
)
|
|
(900
|
)
|
|||
Provision for income taxes
|
$
|
135,027
|
|
|
$
|
225,980
|
|
|
$
|
93,024
|
|
Total effective tax rate
|
36.5
|
%
|
|
56.1
|
%
|
|
37.9
|
%
|
|
2015
|
|
2014
|
||||
|
(In thousands)
|
||||||
Inventories and cemetery property
|
$
|
(338,143
|
)
|
|
$
|
(338,446
|
)
|
Property and equipment
|
(168,265
|
)
|
|
(183,332
|
)
|
||
Intangibles
|
(302,217
|
)
|
|
(309,271
|
)
|
||
Other
|
(12,047
|
)
|
|
(6,870
|
)
|
||
Deferred tax liabilities
|
(820,672
|
)
|
|
(837,919
|
)
|
||
Loss and tax credit carry-forwards
|
171,725
|
|
|
181,092
|
|
||
Deferred revenue on preneed funeral and cemetery contracts
|
226,483
|
|
|
262,202
|
|
||
Accrued liabilities
|
102,351
|
|
|
99,908
|
|
||
Deferred tax assets
|
500,559
|
|
|
543,202
|
|
||
Less: Valuation allowance
|
(126,654
|
)
|
|
(134,201
|
)
|
||
Net deferred income tax liability
|
$
|
(446,767
|
)
|
|
$
|
(428,918
|
)
|
|
2015
|
|
2014
|
||||
|
(In thousands)
|
||||||
Current deferred tax assets
|
$
|
—
|
|
|
$
|
1,128
|
|
Non-current deferred tax assets
|
23,817
|
|
|
18,778
|
|
||
Non-current deferred tax liabilities
|
(470,584
|
)
|
|
(448,824
|
)
|
||
Net deferred income tax liability
|
$
|
(446,767
|
)
|
|
$
|
(428,918
|
)
|
|
Federal, State and Foreign Tax
|
||
|
(In thousands)
|
||
Balance at December 31, 2012
|
$
|
184,899
|
|
Reductions to tax positions related to the current year
|
3,019
|
|
|
Additions to tax positions related to the acquisition of Stewart, offset to goodwill
|
1,556
|
|
|
Reductions to tax positions related to prior years
|
(8,800
|
)
|
|
Statute expirations
|
(2,844
|
)
|
|
Balance at December 31, 2013
|
$
|
177,830
|
|
Additions to tax positions related to the current year
|
8,721
|
|
|
Additions to tax positions related to prior years
|
10,085
|
|
|
Reductions to tax positions related to the current year
|
(1,075
|
)
|
|
Reductions to tax positions related to prior years
|
(2,325
|
)
|
|
Reductions to tax positions related to the acquisition of Stewart, offset to goodwill
|
(1,556
|
)
|
|
Balance at December 31, 2014
|
$
|
191,680
|
|
Additions to tax positions related to the current year
|
3,235
|
|
|
Reductions to tax positions related to prior years
|
(12,370
|
)
|
|
Balance at December 31, 2015
|
$
|
182,545
|
|
|
|
State
|
|
Foreign
|
|
Total
|
||||||
|
|
(In thousands)
|
|
|
||||||||
2016
|
|
$
|
156,434
|
|
|
$
|
—
|
|
|
$
|
156,434
|
|
2017
|
|
247,348
|
|
|
—
|
|
|
247,348
|
|
|||
2018
|
|
102,661
|
|
|
—
|
|
|
102,661
|
|
|||
2019
|
|
137,636
|
|
|
—
|
|
|
137,636
|
|
|||
Thereafter
|
|
2,587,522
|
|
|
3,824
|
|
|
2,591,346
|
|
|||
Total
|
|
$
|
3,231,601
|
|
|
$
|
3,824
|
|
|
$
|
3,235,425
|
|
|
Federal
|
|
State
|
|
Foreign
|
|
Total
|
||||||||
|
|
|
(In thousands)
|
|
|
||||||||||
Loss and tax credit carry-forwards
|
$
|
179
|
|
|
$
|
151,463
|
|
|
$
|
20,083
|
|
|
$
|
171,725
|
|
Valuation allowance
|
$
|
—
|
|
|
$
|
110,955
|
|
|
$
|
15,699
|
|
|
$
|
126,654
|
|
|
2015
|
|
2014
|
||||
|
(In thousands)
|
||||||
6.75% Senior Notes due April 2016
|
$
|
—
|
|
|
$
|
197,377
|
|
7.0% Senior Notes due June 2017
|
295,000
|
|
|
295,000
|
|
||
7.625% Senior Notes due October 2018
|
250,000
|
|
|
250,000
|
|
||
4.5% Senior Notes due November 2020
|
200,000
|
|
|
200,000
|
|
||
8.0% Senior Notes due November 2021
|
150,000
|
|
|
150,000
|
|
||
5.375% Senior Notes due January 2022
|
425,000
|
|
|
425,000
|
|
||
5.375% Senior Notes due May 2024
|
850,000
|
|
|
550,000
|
|
||
7.5% Senior Notes due April 2027
|
200,000
|
|
|
200,000
|
|
||
Term Loan due July 2018
|
310,000
|
|
|
370,000
|
|
||
Bank Credit Facility due July 2018
|
270,000
|
|
|
235,000
|
|
||
Obligations under capital leases
|
204,246
|
|
|
181,002
|
|
||
Mortgage notes and other debt, maturities through 2050
|
4,037
|
|
|
4,251
|
|
||
Unamortized premiums (discounts) and other, net
|
8,636
|
|
|
(2,905
|
)
|
||
Total debt
|
3,166,919
|
|
|
3,054,725
|
|
||
Less: Current maturities of long-term debt
|
(95,181
|
)
|
|
(90,931
|
)
|
||
Total long-term debt
|
$
|
3,071,738
|
|
|
$
|
2,963,794
|
|
2016
|
$
|
95,181
|
|
2017
|
437,575
|
|
|
2018
|
727,315
|
|
|
2019
|
16,695
|
|
|
2020
|
225,364
|
|
|
2021 and thereafter
|
1,664,789
|
|
|
|
$
|
3,166,919
|
|
•
|
$197.4 million
in aggregate principal of our
6.75% Senior Notes due April 2016
;
|
•
|
$100.0 million
in aggregate principal of our Bank Credit Facility;
|
•
|
$60.0 million
in aggregate principal of our Term Loan due
July 2018
; and
|
•
|
$0.2 million
in other debt.
|
•
|
$250.0 million
in aggregate principal of our
7.0%
Senior Notes due
May 2019
;
|
•
|
$200.0 million
in aggregate principal and
$9.1 million
in unamortized premiums of our
6.5%
Senior Notes due
April 2019
;
|
•
|
$136.5 million
in aggregate principal of our
6.75%
Senior Notes due
April 2015
;
|
•
|
$230.0 million
in aggregate principal of our Term Loan due
July 2018
. Of this amount our credit agreement required
$200.0 million
from the proceeds of the Federal Trade Commission (FTC) mandated divestitures under our consent order related to the Stewart acquisition;
|
•
|
$86.4 million
in aggregate principal and
$21.7 million
in unamortized premiums of our
3.125%
Senior Convertible Notes due
2014
;
|
•
|
$45.0 million
in aggregate principal and
$14.2 million
in unamortized premiums of our
3.375%
Senior Convertible Notes due
2016
; and
|
•
|
$0.5 million
in other debt.
|
Payments in 2015
|
$
|
164,748
|
|
Payments in 2014
|
$
|
175,327
|
|
Payments in 2013
|
$
|
125,022
|
|
Payments in 2016
|
$
|
161,896
|
|
Payments in 2017
|
$
|
150,012
|
|
Payments in 2018
|
$
|
128,239
|
|
Payments in 2019
|
$
|
106,210
|
|
Payments in 2020
|
$
|
104,706
|
|
Payments in 2021 and thereafter
|
$
|
291,116
|
|
10.
|
Credit Risk and Fair Value of Financial Instruments
|
|
2015
|
|
2014
|
||||
|
(In thousands)
|
||||||
6.75% Senior Notes due April 2016
|
$
|
—
|
|
|
$
|
208,075
|
|
7.0% Senior Notes due June 2017
|
314,618
|
|
|
320,043
|
|
||
7.625% Senior Notes due October 2018
|
279,375
|
|
|
277,538
|
|
||
4.5% Senior Notes due November 2020
|
201,500
|
|
|
201,700
|
|
||
8.0% Senior Notes due November 2021
|
176,438
|
|
|
174,375
|
|
||
5.375% Senior Notes due January 2022
|
445,188
|
|
|
437,750
|
|
||
5.375% Senior Notes due May 2024
|
884,094
|
|
|
558,250
|
|
||
7.5% Senior Notes due April 2027
|
216,500
|
|
|
220,890
|
|
||
Term Loan due July 2018
|
310,000
|
|
|
370,000
|
|
||
Bank Credit Facility due July 2018
|
270,000
|
|
|
235,000
|
|
||
Mortgage notes and other debt, maturities through 2050
|
4,047
|
|
|
4,277
|
|
||
Total fair value of debt instruments
|
$
|
3,101,760
|
|
|
$
|
3,007,898
|
|
11.
|
Commitments and Contingencies
|
|
Operating
|
|
Capital
|
||||
|
(In thousands)
|
||||||
2016
|
$
|
14,496
|
|
|
$
|
34,415
|
|
2017
|
12,110
|
|
|
51,756
|
|
||
2018
|
10,545
|
|
|
46,290
|
|
||
2019
|
8,641
|
|
|
21,499
|
|
||
2020
|
7,167
|
|
|
24,010
|
|
||
2021 and thereafter
|
61,010
|
|
|
26,276
|
|
||
Total
|
$
|
113,969
|
|
|
204,246
|
|
|
Less: Interest on capital leases
|
|
|
(17,396
|
)
|
|||
Total principal payable on capital leases
|
|
|
|
$
|
186,850
|
|
|
Employment and Management
|
|
Consulting
|
|
Non-Competition
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
2016
|
$
|
1,427
|
|
|
$
|
589
|
|
|
$
|
4,751
|
|
|
$
|
6,767
|
|
2017
|
988
|
|
|
194
|
|
|
4,352
|
|
|
5,534
|
|
||||
2018
|
508
|
|
|
124
|
|
|
4,166
|
|
|
4,798
|
|
||||
2019
|
301
|
|
|
75
|
|
|
4,022
|
|
|
4,398
|
|
||||
2020
|
22
|
|
|
38
|
|
|
2,904
|
|
|
2,964
|
|
||||
2021 and thereafter
|
8
|
|
|
—
|
|
|
6,060
|
|
|
6,068
|
|
||||
Total
|
$
|
3,254
|
|
|
$
|
1,020
|
|
|
$
|
26,255
|
|
|
$
|
30,529
|
|
12.
|
Equity
|
|
Foreign
Currency
Translation
Adjustment
|
|
Unrealized
Gains and
Losses
|
|
Accumulated
Other
Comprehensive
(Loss) Income
|
||||||
|
(In thousands)
|
||||||||||
Balance at December 31, 2012
|
$
|
111,717
|
|
|
$
|
—
|
|
|
$
|
111,717
|
|
Activity in 2013
|
(23,276
|
)
|
|
—
|
|
|
(23,276
|
)
|
|||
Reduction in net unrealized gains associated with available-for-sale securities of the trusts, net of taxes
|
—
|
|
|
(113,553
|
)
|
|
(113,553
|
)
|
|||
Reclassification of net unrealized losses activity attributable to the
Deferred preneed receipts held in trust
and
Care trusts’ corpus,
net of taxes
|
—
|
|
|
113,553
|
|
|
113,553
|
|
|||
Balance at December 31, 2013
|
$
|
88,441
|
|
|
$
|
—
|
|
|
$
|
88,441
|
|
Activity in 2014
|
(32,141
|
)
|
|
—
|
|
|
(32,141
|
)
|
|||
Reclassification of foreign currency translation adjustments to
Net income
from discontinued operations
|
3,114
|
|
|
—
|
|
|
3,114
|
|
|||
Increase in net unrealized gains associated with available-for- sale securities of the trusts, net of taxes
|
—
|
|
|
(166,570
|
)
|
|
(166,570
|
)
|
|||
Reclassification of net unrealized gains activity attributable to the
Deferred preneed receipts held in trust and Care trusts’ corpus,
net of taxes
|
—
|
|
|
166,570
|
|
|
166,570
|
|
|||
Balance at December 31, 2014
|
$
|
59,414
|
|
|
$
|
—
|
|
|
$
|
59,414
|
|
Activity in 2015
|
(53,250
|
)
|
|
—
|
|
|
(53,250
|
)
|
|||
Increase in net unrealized gains associated with available-for-sale securities of the trusts, net of taxes
|
—
|
|
|
(85,140
|
)
|
|
(85,140
|
)
|
|||
Reclassification of net unrealized gains activity attributable to the
Deferred preneed receipts held in trust
and
Care trusts’ corpus,
net of taxes
|
—
|
|
|
85,140
|
|
|
85,140
|
|
|||
Balance at December 31, 2015
|
$
|
6,164
|
|
|
$
|
—
|
|
|
$
|
6,164
|
|
13.
|
Share-Based Compensation
|
|
|
Years Ended December 31,
|
|||||||
Assumptions
|
|
2015
|
|
2014
|
|
2013
|
|||
Dividend yield
|
|
1.8
|
%
|
|
1.8
|
%
|
|
1.9
|
%
|
Expected volatility
|
|
23.3
|
%
|
|
27.1
|
%
|
|
35.2
|
%
|
Risk-free interest rate
|
|
1.3
|
%
|
|
1.1
|
%
|
|
0.7
|
%
|
Expected holding period (years)
|
|
4.0
|
|
|
4.0
|
|
|
4.0
|
|
|
December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
|
(In thousands)
|
||||||||||
Total pretax employee share-based compensation expense included in net income
|
$
|
13,843
|
|
|
$
|
13,127
|
|
|
$
|
11,925
|
|
Income tax benefit related to share-based compensation included in net income
|
$
|
5,068
|
|
|
$
|
7,368
|
|
|
$
|
4,689
|
|
|
|
Options Outstanding
|
|
Options Exercisable
|
||||||||||||
|
|
Number
Outstanding at
December 31,
|
|
Weighted-Average Remaining Contractual Life
|
|
Weighted-
Average
|
|
Number
Exercisable at
December 31,
|
|
Weighted-
Average
|
||||||
Range of Exercise Price
|
|
2015
|
|
(in years)
|
|
Exercise Price
|
|
2015
|
|
Exercise Price
|
||||||
$0.00 — 5.00
|
|
981,087
|
|
|
1.1
|
|
$
|
4.19
|
|
|
981,087
|
|
|
$
|
4.19
|
|
$5.01 — 10.00
|
|
2,523,076
|
|
|
2.6
|
|
$
|
8.43
|
|
|
2,523,076
|
|
|
$
|
8.43
|
|
$10.01 — 15.00
|
|
1,579,044
|
|
|
3.9
|
|
$
|
11.19
|
|
|
1,579,044
|
|
|
$
|
11.19
|
|
$15.01 — 20.00
|
|
3,959,863
|
|
|
5.7
|
|
$
|
16.48
|
|
|
1,771,466
|
|
|
$
|
16.11
|
|
$20.01 — 25.00
|
|
2,004,850
|
|
|
7.1
|
|
$
|
23.00
|
|
|
63,300
|
|
|
$
|
23.00
|
|
$0.00 — 25.00
|
|
11,047,920
|
|
|
4.6
|
|
$
|
13.98
|
|
|
6,917,973
|
|
|
$
|
10.56
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Weighted average grant-date fair value of stock options granted
|
$
|
3.79
|
|
|
$
|
3.34
|
|
|
$
|
3.68
|
|
Total fair value of stock options vested (in thousands)
|
$
|
7,973
|
|
|
$
|
6,814
|
|
|
$
|
5,997
|
|
Total intrinsic value of stock options exercised (in thousands)
|
$
|
52,513
|
|
|
$
|
42,048
|
|
|
$
|
8,855
|
|
|
Restricted
Shares
|
|
Weighted-Average
Grant-Date
Fair Value
|
|||
Nonvested restricted shares at December 31, 2014
|
1,319,260
|
|
|
$
|
13.39
|
|
Granted
|
253,791
|
|
|
$
|
23.00
|
|
Vested
|
(990,558
|
)
|
|
$
|
12.37
|
|
Forfeited and other
|
(8,754
|
)
|
|
$
|
19.83
|
|
Nonvested restricted shares at December 31, 2015
|
573,739
|
|
|
$
|
19.32
|
|
14.
|
Retirement Plans
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
(In thousands)
|
||||||||||
Interest cost on projected benefit obligation
|
$
|
1,198
|
|
|
$
|
1,293
|
|
|
$
|
780
|
|
Recognized net actuarial (gains) losses
|
(1,327
|
)
|
|
2,401
|
|
|
(1,205
|
)
|
|||
Total net periodic benefit cost
|
$
|
(129
|
)
|
|
$
|
3,694
|
|
|
$
|
(425
|
)
|
|
2015
|
|
2014
|
||||
|
(In thousands)
|
||||||
Change in Benefit Obligation:
|
|
|
|
|
|
||
Benefit obligation at beginning of year
|
$
|
36,920
|
|
|
$
|
37,499
|
|
Acquisition of benefit obligation
|
—
|
|
|
—
|
|
||
Interest cost
|
1,198
|
|
|
1,293
|
|
||
Actuarial (loss) gain
|
(1,327
|
)
|
|
2,401
|
|
||
Benefits paid
|
(4,486
|
)
|
|
(4,273
|
)
|
||
Benefit obligation at end of year
|
$
|
32,305
|
|
|
$
|
36,920
|
|
Change in Plan Assets:
|
|
|
|
|
|
||
Fair value of plan assets at beginning of year
|
$
|
—
|
|
|
$
|
—
|
|
Employer contributions
|
4,486
|
|
|
4,273
|
|
||
Benefits paid, including expenses
|
(4,486
|
)
|
|
(4,273
|
)
|
||
Fair value of plan assets at end of year
|
$
|
—
|
|
|
$
|
—
|
|
Funded status of plan
|
$
|
(32,305
|
)
|
|
$
|
(36,920
|
)
|
|
|
|
|
||||
Funding Summary:
|
|
|
|
|
|
||
Projected benefit obligations
|
$
|
32,305
|
|
|
$
|
36,920
|
|
Accumulated benefit obligation
|
$
|
32,305
|
|
|
$
|
36,920
|
|
Amounts Recognized in the Consolidated Balance Sheet:
|
|
|
|
|
|
||
Accounts payable and accrued liabilities
|
$
|
(3,723
|
)
|
|
$
|
(4,005
|
)
|
Accrued pension - included in other liabilities
|
(28,582
|
)
|
|
(32,915
|
)
|
||
Total accrued benefit liability
|
$
|
(32,305
|
)
|
|
$
|
(36,920
|
)
|
|
2015
|
|
2014
|
|
2013
|
|||
Weighted average discount rate used to determine obligations
|
3.86
|
%
|
|
3.42
|
%
|
|
3.66
|
%
|
Weighted average discount rate used to determine net periodic pension cost
|
2.47
|
%
|
|
3.69
|
%
|
|
2.90
|
%
|
2016
|
$
|
3,723
|
|
2017
|
$
|
3,425
|
|
2018
|
$
|
3,216
|
|
2019
|
$
|
3,146
|
|
2020
|
$
|
2,724
|
|
Years 2021 through 2025
|
$
|
10,565
|
|
Years of Vesting Service
|
|
Percentage of Deferred Compensation
|
0 — 5 years
|
|
75% of the first 6% of deferred compensation
|
6 — 10 years
|
|
100% of the first 6% of deferred compensation
|
11 or more years
|
|
125% of the first 6% of deferred compensation
|
15.
|
Segment Reporting
|
|
Reportable Segments
|
|
|
|
|
||||||||||
|
Funeral
|
|
Cemetery
|
|
Corporate
|
|
Consolidated
|
||||||||
|
(In thousands)
|
|
|
||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenue from external customers
|
$
|
1,888,812
|
|
|
$
|
1,097,568
|
|
|
$
|
—
|
|
|
$
|
2,986,380
|
|
Interest expense
|
$
|
4,228
|
|
|
$
|
448
|
|
|
$
|
168,221
|
|
|
$
|
172,897
|
|
Depreciation and amortization
|
$
|
103,119
|
|
|
$
|
29,601
|
|
|
$
|
8,736
|
|
|
$
|
141,456
|
|
Amortization of intangible assets
|
$
|
22,767
|
|
|
$
|
8,617
|
|
|
$
|
75
|
|
|
$
|
31,459
|
|
Gross profit
|
$
|
387,533
|
|
|
$
|
284,412
|
|
|
$
|
—
|
|
|
$
|
671,945
|
|
Amortization of cemetery property
|
$
|
—
|
|
|
$
|
62,407
|
|
|
$
|
—
|
|
|
$
|
62,407
|
|
Capital expenditures
|
$
|
53,291
|
|
|
$
|
83,573
|
|
|
$
|
14,122
|
|
|
$
|
150,986
|
|
Total assets
|
$
|
5,197,037
|
|
|
$
|
6,165,047
|
|
|
$
|
356,804
|
|
|
$
|
11,718,888
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue from external customers
|
$
|
1,920,475
|
|
|
$
|
1,073,536
|
|
|
$
|
—
|
|
|
$
|
2,994,011
|
|
Interest expense
|
$
|
4,714
|
|
|
$
|
510
|
|
|
$
|
172,347
|
|
|
$
|
177,571
|
|
Depreciation and amortization
|
$
|
101,801
|
|
|
$
|
28,745
|
|
|
$
|
9,456
|
|
|
$
|
140,002
|
|
Amortization of intangible assets
|
$
|
24,841
|
|
|
$
|
11,700
|
|
|
$
|
99
|
|
|
$
|
36,640
|
|
Gross profit
|
$
|
409,701
|
|
|
$
|
265,984
|
|
|
$
|
—
|
|
|
$
|
675,685
|
|
Amortization of cemetery property
|
$
|
—
|
|
|
$
|
60,439
|
|
|
$
|
—
|
|
|
$
|
60,439
|
|
Capital expenditures
|
$
|
52,610
|
|
|
$
|
78,588
|
|
|
$
|
13,301
|
|
|
$
|
144,499
|
|
Total assets
|
$
|
5,305,294
|
|
|
$
|
6,152,113
|
|
|
$
|
466,237
|
|
|
$
|
11,923,644
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue from external customers
|
$
|
1,698,493
|
|
|
$
|
851,973
|
|
|
$
|
—
|
|
|
$
|
2,550,466
|
|
Interest expense
|
$
|
4,736
|
|
|
$
|
348
|
|
|
$
|
137,276
|
|
|
$
|
142,360
|
|
Depreciation and amortization
|
$
|
92,588
|
|
|
$
|
23,384
|
|
|
$
|
6,263
|
|
|
$
|
122,235
|
|
Amortization of intangible assets
|
$
|
17,245
|
|
|
$
|
4,590
|
|
|
$
|
24
|
|
|
$
|
21,859
|
|
Gross profit
|
$
|
349,791
|
|
|
$
|
199,256
|
|
|
$
|
—
|
|
|
$
|
549,047
|
|
Amortization of cemetery property
|
$
|
—
|
|
|
$
|
48,344
|
|
|
$
|
—
|
|
|
$
|
48,344
|
|
Capital expenditures
|
$
|
50,304
|
|
|
$
|
58,315
|
|
|
$
|
4,320
|
|
|
$
|
112,939
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
(In thousands)
|
||||||||||
Gross profit from reportable segments
|
$
|
671,945
|
|
|
$
|
675,685
|
|
|
$
|
549,047
|
|
General and administrative expenses
|
(128,188
|
)
|
|
(184,749
|
)
|
|
(155,128
|
)
|
|||
Gains (losses) on divestitures and impairment charges, net
|
6,522
|
|
|
116,613
|
|
|
(6,263
|
)
|
|||
Operating income
|
550,279
|
|
|
607,549
|
|
|
387,656
|
|
|||
Interest expense
|
(172,897
|
)
|
|
(177,571
|
)
|
|
(142,360
|
)
|
|||
(Losses) gains on early extinguishment of debt, net
|
(6,918
|
)
|
|
(29,158
|
)
|
|
468
|
|
|||
Other (expense) income, net
|
(113
|
)
|
|
1,780
|
|
|
(558
|
)
|
|||
Income from continuing operations before income taxes
|
$
|
370,351
|
|
|
$
|
402,600
|
|
|
$
|
245,206
|
|
|
United States
|
|
Canada
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
2015
|
|
|
|
|
|
|
|
|
|||
Revenue from external customers
|
$
|
2,805,748
|
|
|
$
|
180,632
|
|
|
$
|
2,986,380
|
|
Interest expense
|
$
|
172,697
|
|
|
$
|
200
|
|
|
$
|
172,897
|
|
Depreciation and amortization
|
$
|
132,393
|
|
|
$
|
9,063
|
|
|
$
|
141,456
|
|
Amortization of intangible assets
|
$
|
30,856
|
|
|
$
|
603
|
|
|
$
|
31,459
|
|
Amortization of cemetery property
|
$
|
58,429
|
|
|
$
|
3,978
|
|
|
$
|
62,407
|
|
Operating income
|
$
|
498,615
|
|
|
$
|
51,664
|
|
|
$
|
550,279
|
|
Gains on divestitures and impairment charges, net
|
$
|
1,778
|
|
|
$
|
4,744
|
|
|
$
|
6,522
|
|
Long-lived assets
|
$
|
5,759,342
|
|
|
$
|
253,246
|
|
|
$
|
6,012,588
|
|
2014
|
|
|
|
|
|
|
|
|
|||
Revenue from external customers
|
$
|
2,792,009
|
|
|
$
|
202,002
|
|
|
$
|
2,994,011
|
|
Interest expense
|
$
|
177,245
|
|
|
$
|
326
|
|
|
$
|
177,571
|
|
Depreciation and amortization
|
$
|
129,510
|
|
|
$
|
10,492
|
|
|
$
|
140,002
|
|
Amortization of intangible assets
|
$
|
35,895
|
|
|
$
|
745
|
|
|
$
|
36,640
|
|
Amortization of cemetery property
|
$
|
55,679
|
|
|
$
|
4,760
|
|
|
$
|
60,439
|
|
Operating income
|
$
|
557,608
|
|
|
$
|
49,941
|
|
|
$
|
607,549
|
|
Gains on divestitures and impairment charges, net
|
$
|
116,046
|
|
|
$
|
567
|
|
|
$
|
116,613
|
|
Long-lived assets
|
$
|
5,735,205
|
|
|
$
|
300,515
|
|
|
$
|
6,035,720
|
|
2013
|
|
|
|
|
|
|
|
|
|||
Revenue from external customers
|
$
|
2,334,667
|
|
|
$
|
215,799
|
|
|
$
|
2,550,466
|
|
Interest expense
|
$
|
141,991
|
|
|
$
|
369
|
|
|
$
|
142,360
|
|
Depreciation and amortization
|
$
|
111,210
|
|
|
$
|
11,025
|
|
|
$
|
122,235
|
|
Amortization of intangible assets
|
$
|
20,846
|
|
|
$
|
1,013
|
|
|
$
|
21,859
|
|
Amortization of cemetery property
|
$
|
42,972
|
|
|
$
|
5,372
|
|
|
$
|
48,344
|
|
Operating income
|
$
|
331,143
|
|
|
$
|
56,513
|
|
|
$
|
387,656
|
|
Losses on divestitures and impairment charges, net
|
$
|
(5,958
|
)
|
|
$
|
(305
|
)
|
|
$
|
(6,263
|
)
|
16.
|
Supplementary Information
|
|
December 31,
|
||||||
|
2015
|
|
2014
|
||||
|
(In thousands)
|
||||||
Cash and cash equivalents:
|
|
|
|
|
|
||
Cash
|
$
|
106,831
|
|
|
$
|
132,743
|
|
Commercial paper and temporary investments
|
27,768
|
|
|
44,592
|
|
||
|
$
|
134,599
|
|
|
$
|
177,335
|
|
Receivables, net:
|
|
|
|
|
|
||
Notes receivable
|
$
|
2,056
|
|
|
$
|
8,381
|
|
Atneed funeral receivables, net of allowances of $3,343 and $6,200, respectively
|
52,184
|
|
|
61,306
|
|
||
Atneed cemetery receivables, net of allowances of $2,153 and $2,346, respectively
|
13,585
|
|
|
14,842
|
|
||
Other
|
22,637
|
|
|
24,521
|
|
||
|
$
|
90,462
|
|
|
$
|
109,050
|
|
Other current assets:
|
|
|
|
|
|
||
Income tax receivable
|
$
|
15,662
|
|
|
$
|
22,581
|
|
Prepaid insurance
|
5,398
|
|
|
5,270
|
|
||
Restricted cash
|
12,587
|
|
|
28,926
|
|
||
Deferred debt issuance costs
|
9,522
|
|
|
9,180
|
|
||
Other
|
12,344
|
|
|
14,817
|
|
||
|
$
|
55,513
|
|
|
$
|
80,774
|
|
Cemetery property:
|
|
|
|
|
|
||
Undeveloped land
|
$
|
1,186,861
|
|
|
$
|
1,186,325
|
|
Developed lots, lawn crypts, mausoleum spaces, cremation niches, and cremation memorialization property
|
566,154
|
|
|
552,891
|
|
||
|
$
|
1,753,015
|
|
|
$
|
1,739,216
|
|
Property and equipment:
|
|
|
|
|
|
||
Land
|
$
|
591,407
|
|
|
$
|
603,509
|
|
Buildings and improvements
|
1,834,403
|
|
|
1,783,171
|
|
||
Operating equipment
|
530,195
|
|
|
500,511
|
|
||
Leasehold improvements
|
52,121
|
|
|
50,862
|
|
||
Capital leases
|
220,784
|
|
|
204,991
|
|
||
|
3,228,910
|
|
|
3,143,044
|
|
||
Less: Accumulated depreciation
|
(1,253,872
|
)
|
|
(1,163,921
|
)
|
||
Less: Accumulated amortization of capital leases
|
(128,316
|
)
|
|
(117,720
|
)
|
||
|
$
|
1,846,722
|
|
|
$
|
1,861,403
|
|
Deferred charges and other assets:
|
|
|
|
|
|
||
Intangible assets, net
|
$
|
370,005
|
|
|
$
|
393,781
|
|
Restricted cash
|
3,907
|
|
|
16,073
|
|
||
Deferred tax assets
|
23,817
|
|
|
18,778
|
|
||
Notes receivable, net of allowances of $11,334 and $11,259, respectively
|
10,229
|
|
|
4,858
|
|
||
Cash surrender value of insurance policies
|
108,726
|
|
|
102,856
|
|
||
Other
|
99,827
|
|
|
87,902
|
|
||
|
$
|
616,511
|
|
|
$
|
624,248
|
|
|
December 31,
|
||||||
|
2015
|
|
2014
|
||||
|
(In thousands)
|
||||||
Accounts payable and accrued liabilities:
|
|
|
|
|
|
||
Accounts payable
|
$
|
140,045
|
|
|
$
|
137,270
|
|
Accrued benefits
|
86,908
|
|
|
86,880
|
|
||
Accrued interest
|
28,673
|
|
|
30,133
|
|
||
Accrued property taxes
|
11,594
|
|
|
14,346
|
|
||
Self insurance reserves
|
76,611
|
|
|
73,991
|
|
||
Bank overdraft
|
21,808
|
|
|
27,798
|
|
||
Other accrued liabilities
|
57,203
|
|
|
82,624
|
|
||
|
$
|
422,842
|
|
|
$
|
453,042
|
|
Other liabilities:
|
|
|
|
|
|
||
Accrued pension
|
$
|
28,582
|
|
|
$
|
32,915
|
|
Deferred compensation
|
92,199
|
|
|
83,278
|
|
||
Customer refund obligation reserve
|
55,153
|
|
|
60,019
|
|
||
Tax liability
|
234,176
|
|
|
239,265
|
|
||
Indemnification liability
|
—
|
|
|
236
|
|
||
Payable to perpetual care fund
|
71,133
|
|
|
64,722
|
|
||
Other
|
15,678
|
|
|
22,118
|
|
||
|
$
|
496,921
|
|
|
$
|
502,553
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
(In thousands)
|
||||||||||
Merchandise revenue:
|
|
|
|
|
|
|
|
|
|||
Funeral
|
$
|
603,405
|
|
|
$
|
616,992
|
|
|
$
|
584,429
|
|
Cemetery
|
849,251
|
|
|
816,980
|
|
|
653,211
|
|
|||
Total merchandise revenue
|
1,452,656
|
|
|
1,433,972
|
|
|
1,237,640
|
|
|||
Services revenue:
|
|
|
|
|
|
|
|
|
|||
Funeral
|
1,134,807
|
|
|
1,167,385
|
|
|
989,624
|
|
|||
Cemetery
|
217,447
|
|
|
222,834
|
|
|
168,864
|
|
|||
Total services revenue
|
1,352,254
|
|
|
1,390,219
|
|
|
1,158,488
|
|
|||
Other revenue
|
181,470
|
|
|
169,820
|
|
|
154,338
|
|
|||
Total revenue
|
$
|
2,986,380
|
|
|
$
|
2,994,011
|
|
|
$
|
2,550,466
|
|
Merchandise costs and expenses:
|
|
|
|
|
|
|
|
|
|||
Funeral
|
$
|
285,432
|
|
|
$
|
292,031
|
|
|
$
|
266,558
|
|
Cemetery
|
487,877
|
|
|
485,291
|
|
|
380,323
|
|
|||
Total cost of merchandise
|
773,309
|
|
|
777,322
|
|
|
646,881
|
|
|||
Services costs and expenses:
|
|
|
|
|
|
|
|
|
|||
Funeral
|
629,842
|
|
|
630,357
|
|
|
548,534
|
|
|||
Cemetery
|
65,839
|
|
|
70,439
|
|
|
51,562
|
|
|||
Total cost of services
|
695,681
|
|
|
700,796
|
|
|
600,096
|
|
|||
Overhead and other expenses
|
845,445
|
|
|
840,208
|
|
|
754,442
|
|
|||
Total cost and expenses
|
$
|
2,314,435
|
|
|
$
|
2,318,326
|
|
|
$
|
2,001,419
|
|
|
Years Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
|
(In thousands)
|
||||||||||
Net change in capital expenditure accrual
|
$
|
5,571
|
|
|
$
|
1,022
|
|
|
$
|
—
|
|
Options exercised by attestation
|
$
|
122
|
|
|
$
|
761
|
|
|
$
|
3,004
|
|
Shares repurchased
|
$
|
(122
|
)
|
|
$
|
(761
|
)
|
|
$
|
(3,004
|
)
|
17.
|
Earnings Per Share
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
(In thousands, except per share amounts)
|
||||||||||
Amounts attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|||
Income from continuing operations — basic
|
$
|
234,162
|
|
|
$
|
170,283
|
|
|
$
|
146,926
|
|
After tax interest on convertible debt
|
50
|
|
|
51
|
|
|
51
|
|
|||
Income from continuing operations — diluted
|
$
|
234,212
|
|
|
$
|
170,334
|
|
|
$
|
146,977
|
|
|
|
|
|
|
|
||||||
(Loss) income from discontinued operations, net of tax
|
$
|
(390
|
)
|
|
$
|
2,186
|
|
|
$
|
406
|
|
|
|
|
|
|
|
||||||
Net income — basic
|
$
|
233,772
|
|
|
$
|
172,469
|
|
|
$
|
147,332
|
|
After tax interest on convertible debt
|
50
|
|
|
51
|
|
|
51
|
|
|||
Net income — diluted
|
$
|
233,822
|
|
|
$
|
172,520
|
|
|
$
|
147,383
|
|
Weighted average shares:
|
|
|
|
|
|
|
|
|
|||
Weighted average shares — basic
|
200,356
|
|
|
210,741
|
|
|
211,811
|
|
|||
Stock options
|
3,973
|
|
|
3,338
|
|
|
4,082
|
|
|||
Convertible debt
|
121
|
|
|
121
|
|
|
121
|
|
|||
Weighted average shares — diluted
|
204,450
|
|
|
214,200
|
|
|
216,014
|
|
|||
Amounts attributable to common stockholders:
|
|
|
|
|
|
||||||
Income from continuing operations per share:
|
|
|
|
|
|
||||||
Basic
|
$
|
1.17
|
|
|
$
|
0.81
|
|
|
$
|
0.70
|
|
Diluted
|
$
|
1.14
|
|
|
$
|
0.80
|
|
|
$
|
0.68
|
|
Income from discontinued operations per share:
|
|
|
|
|
|
||||||
Basic
|
$
|
—
|
|
|
$
|
0.01
|
|
|
$
|
—
|
|
Diluted
|
$
|
—
|
|
|
$
|
0.01
|
|
|
$
|
—
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|||
Basic
|
$
|
1.17
|
|
|
$
|
0.82
|
|
|
$
|
0.70
|
|
Diluted
|
$
|
1.14
|
|
|
$
|
0.81
|
|
|
$
|
0.68
|
|
18.
|
Acquisitions
|
Revenue
|
|
|
$
|
2,919,278
|
|
Net income
|
|
|
$
|
203,916
|
|
19.
|
Divestiture-Related Activities
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
(In thousands)
|
||||||||||
Gains (losses) on divestitures, net
|
$
|
13,363
|
|
|
$
|
122,535
|
|
|
$
|
(3,350
|
)
|
Impairment losses
|
(6,841
|
)
|
|
(5,922
|
)
|
|
(2,913
|
)
|
|||
|
$
|
6,522
|
|
|
$
|
116,613
|
|
|
$
|
(6,263
|
)
|
|
Twelve Months Ended
|
||||||||||
|
December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
|
(In thousands)
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
1,613
|
|
|
$
|
5,907
|
|
Costs and expenses
|
—
|
|
|
(1,471
|
)
|
|
(5,393
|
)
|
|||
(Loss) gain on disposition
|
(390
|
)
|
|
2,136
|
|
|
—
|
|
|||
Other expense, net
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|||
(Loss) income from discontinued operations before income taxes
|
(390
|
)
|
|
2,276
|
|
|
513
|
|
|||
Provision for income taxes
|
—
|
|
|
(90
|
)
|
|
(107
|
)
|
|||
Net (loss) income from discontinued operations
|
$
|
(390
|
)
|
|
$
|
2,186
|
|
|
$
|
406
|
|
20.
|
Quarterly Financial Data (Unaudited)
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
||||||||
|
(In thousands, except per share amounts)
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue
|
$
|
748,117
|
|
|
$
|
754,354
|
|
|
$
|
714,526
|
|
|
$
|
769,383
|
|
Costs and expenses
|
$
|
(570,674
|
)
|
|
$
|
(588,096
|
)
|
|
$
|
(573,723
|
)
|
|
$
|
(581,942
|
)
|
Gross profit
|
$
|
177,443
|
|
|
$
|
166,258
|
|
|
$
|
140,803
|
|
|
$
|
187,441
|
|
Operating income
|
$
|
141,115
|
|
|
$
|
127,581
|
|
|
$
|
124,548
|
|
|
$
|
157,035
|
|
Income from continuing operations before income taxes
(1)
|
$
|
98,118
|
|
|
$
|
84,489
|
|
|
$
|
74,045
|
|
|
$
|
113,699
|
|
Provision for income taxes
|
$
|
(36,653
|
)
|
|
$
|
(31,007
|
)
|
|
$
|
(26,118
|
)
|
|
$
|
(41,249
|
)
|
Net income from continuing operations
|
$
|
61,465
|
|
|
$
|
53,482
|
|
|
$
|
47,927
|
|
|
$
|
72,450
|
|
Net loss from discontinued operations, net of tax
|
$
|
—
|
|
|
$
|
(390
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Net income
|
$
|
61,465
|
|
|
$
|
53,092
|
|
|
$
|
47,927
|
|
|
$
|
72,450
|
|
Net income attributable to noncontrolling interests
|
$
|
(90
|
)
|
|
$
|
(497
|
)
|
|
$
|
(479
|
)
|
|
$
|
(96
|
)
|
Net income attributable to common stockholders
|
$
|
61,375
|
|
|
$
|
52,595
|
|
|
$
|
47,448
|
|
|
$
|
72,354
|
|
Net income attributable to common stockholders per share
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic — EPS
|
$
|
0.30
|
|
|
$
|
0.26
|
|
|
$
|
0.24
|
|
|
$
|
0.37
|
|
Diluted — EPS
|
$
|
0.30
|
|
|
$
|
0.25
|
|
|
$
|
0.23
|
|
|
$
|
0.36
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue
|
$
|
745,493
|
|
|
$
|
746,760
|
|
|
$
|
718,314
|
|
|
$
|
783,444
|
|
Costs and expenses
|
$
|
(579,435
|
)
|
|
$
|
(590,719
|
)
|
|
$
|
(570,030
|
)
|
|
$
|
(578,142
|
)
|
Gross profit
|
$
|
166,058
|
|
|
$
|
156,041
|
|
|
$
|
148,284
|
|
|
$
|
205,302
|
|
Operating income
|
$
|
107,419
|
|
|
$
|
144,730
|
|
|
$
|
135,119
|
|
|
$
|
220,281
|
|
Income from continuing operations before income taxes
(1)
|
$
|
63,958
|
|
|
$
|
69,316
|
|
|
$
|
91,735
|
|
|
$
|
177,591
|
|
Provision for income taxes
|
$
|
(22,707
|
)
|
|
$
|
(37,357
|
)
|
|
$
|
(74,934
|
)
|
|
$
|
(90,982
|
)
|
Net income from continuing operations
|
$
|
41,251
|
|
|
$
|
31,959
|
|
|
$
|
16,801
|
|
|
$
|
86,609
|
|
Net income (loss) from discontinued operations, net of tax
|
140
|
|
|
(178
|
)
|
|
884
|
|
|
1,340
|
|
||||
Net income
|
$
|
41,391
|
|
|
$
|
31,781
|
|
|
$
|
17,685
|
|
|
$
|
87,949
|
|
Net income attributable to noncontrolling interests
|
$
|
(289
|
)
|
|
$
|
(5,859
|
)
|
|
$
|
(34
|
)
|
|
$
|
(155
|
)
|
Net income attributable to common stockholders
|
$
|
41,102
|
|
|
$
|
25,922
|
|
|
$
|
17,651
|
|
|
$
|
87,794
|
|
Net income attributable to common stockholders per share
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic — EPS
|
$
|
0.19
|
|
|
$
|
0.12
|
|
|
$
|
0.08
|
|
|
$
|
0.42
|
|
Diluted — EPS
|
$
|
0.19
|
|
|
$
|
0.12
|
|
|
$
|
0.08
|
|
|
$
|
0.42
|
|
(1)
|
Includes
(Losses) gains on divestitures and impairment charges, net
, as described in Note 19.
|
(2)
|
Net income per share is computed independently for each of the quarters presented. Therefore, the sum of the quarters’ net income per share may not equal the total computed for the year.
|
SERVICE CORPORATION INTERNATIONAL
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS
Three Years Ended December 31, 2015
|
||||||||||||||||||||
Description
|
|
Balance at
Beginning
of Period
|
|
Charged
(Credited) to
Costs and
Expenses
|
|
Charged
(Credited) to
Other
Accounts(1)
|
|
Write-Offs(2)
|
|
Balance at
End of
Period
|
||||||||||
|
|
(In thousands)
|
||||||||||||||||||
Current provision:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for doubtful accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year Ended December 31, 2015
|
|
$
|
8,546
|
|
|
$
|
6,083
|
|
|
$
|
63,964
|
|
|
$
|
(73,097
|
)
|
|
$
|
5,496
|
|
Year Ended December 31, 2014
|
|
$
|
11,637
|
|
|
$
|
7,376
|
|
|
$
|
55,573
|
|
|
$
|
(66,040
|
)
|
|
$
|
8,546
|
|
Year Ended December 31, 2013
|
|
$
|
8,884
|
|
|
$
|
7,874
|
|
|
$
|
54,774
|
|
|
$
|
(59,895
|
)
|
|
$
|
11,637
|
|
Due After One Year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for doubtful accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year Ended December 31, 2015
|
|
$
|
11,259
|
|
|
$
|
—
|
|
|
$
|
75
|
|
|
$
|
—
|
|
|
$
|
11,334
|
|
Year Ended December 31, 2014
|
|
$
|
10,986
|
|
|
$
|
—
|
|
|
$
|
273
|
|
|
$
|
—
|
|
|
$
|
11,259
|
|
Year Ended December 31, 2013
|
|
$
|
1,316
|
|
|
$
|
—
|
|
|
$
|
9,670
|
|
|
$
|
—
|
|
|
$
|
10,986
|
|
Preneed Funeral and Preneed Cemetery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Asset allowance for cancellation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year Ended December 31, 2015
|
|
$
|
107,040
|
|
|
$
|
5,016
|
|
|
$
|
(6,283
|
)
|
|
$
|
—
|
|
|
$
|
105,773
|
|
Year Ended December 31, 2014
|
|
$
|
106,793
|
|
|
$
|
2,950
|
|
|
$
|
(2,703
|
)
|
|
$
|
—
|
|
|
$
|
107,040
|
|
Year Ended December 31, 2013
|
|
$
|
83,642
|
|
|
$
|
4,498
|
|
|
$
|
18,653
|
|
|
$
|
—
|
|
|
$
|
106,793
|
|
Deferred Preneed Funeral and Cemetery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenue allowance for cancellation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year Ended December 31, 2015
|
|
$
|
(125,030
|
)
|
|
$
|
—
|
|
|
$
|
3,482
|
|
|
$
|
—
|
|
|
$
|
(121,548
|
)
|
Year Ended December 31, 2014
|
|
$
|
(149,288
|
)
|
|
$
|
—
|
|
|
$
|
24,258
|
|
|
$
|
—
|
|
|
$
|
(125,030
|
)
|
Year Ended December 31, 2013
|
|
$
|
(131,320
|
)
|
|
$
|
—
|
|
|
$
|
(17,968
|
)
|
|
$
|
—
|
|
|
$
|
(149,288
|
)
|
Deferred tax valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year Ended December 31, 2015
|
|
$
|
134,201
|
|
|
$
|
(5,988
|
)
|
|
$
|
(1,559
|
)
|
|
$
|
—
|
|
|
$
|
126,654
|
|
Year Ended December 31, 2014
|
|
$
|
114,719
|
|
|
$
|
21,285
|
|
|
$
|
(1,803
|
)
|
|
$
|
—
|
|
|
$
|
134,201
|
|
Year Ended December 31, 2013
|
|
$
|
71,013
|
|
|
$
|
6,213
|
|
|
$
|
37,493
|
|
|
$
|
—
|
|
|
$
|
114,719
|
|
(1)
|
Primarily relates to acquisitions and dispositions of operations.
|
(2)
|
Uncollected receivables written off, net of recoveries.
|
Item 9.
|
Changes In and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A.
|
Controls and Procedures.
|
Item 10.
|
Directors, Executive Officers, and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
Item 13.
|
Certain Relationships and Related Transactions
1
and Director Independence
|
Item 14.
|
Principal Accountant Fees and Services
|
|
|
Number of Securities to be
Issued upon Exercise of
Outstanding Options,
Warrants and Rights
|
|
Weighted-Average
Exercise Price of
Outstanding Options,
Warrants and Rights
|
|
Number of Securities
Remaining Available for
Future Issuance Under
Equity Compensation Plans
(Excluding Securities
Reflected in Column (a))
|
||||
Plan Category
|
|
(a)
|
|
(b)
|
|
(c)
|
||||
Equity compensation plans approved by security holders
|
|
11,047,920
|
|
|
$
|
13.98
|
|
|
1,531,410
|
|
Item 15.
|
Exhibits and Financial Statement Schedule
|
|
|
SERVICE CORPORATION INTERNATIONAL
|
|
|
|
|
By:
|
/s/ GREGORY T. SANGALIS
|
|
|
(Gregory T. Sangalis,
Senior Vice President, General
Counsel, and Secretary ) |
Signature
|
|
Title
|
|
Date
|
||
|
|
|
|
|
||
/s/ THOMAS L. RYAN*
|
|
Chairman of the Board and Chief Executive Officer (Principal Executive Officer)
|
|
February 16, 2016
|
||
(Thomas L. Ryan)
|
|
|
|
|||
|
|
|
|
|
||
/s/ ERIC D. TANZBERGER*
|
|
Senior Vice President, Chief Financial Officer, and Treasurer (Principal Financial Officer)
|
|
February 16, 2016
|
||
(Eric D. Tanzberger)
|
|
|
|
|||
|
|
|
|
|
||
/s/ TAMMY R. MOORE*
|
|
Vice President and Corporate Controller (Principal Accounting Officer)
|
|
February 16, 2016
|
||
(Tammy R. Moore)
|
|
|
|
|||
|
|
|
|
|
||
/s/ R. L. WALTRIP*
|
|
Founder and Chairman Emeritus, Director
|
|
February 16, 2016
|
||
(R. L. Waltrip)
|
|
|
|
|||
|
|
|
|
|
||
/s/ ANTHONY L. COELHO*
|
|
Lead Director
|
|
February 16, 2016
|
||
(Anthony L. Coelho)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ ALAN R. BUCKWALTER, III*
|
|
Director
|
|
February 16, 2016
|
||
(Alan R. Buckwalter, III)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ VICTOR L. LUND*
|
|
Director
|
|
February 16, 2016
|
||
(Victor L. Lund)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ JOHN W. MECOM, JR.*
|
|
Director
|
|
February 16, 2016
|
||
(John W. Mecom, Jr.)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ CLIFTON H. MORRIS, JR.*
|
|
Director
|
|
February 16, 2016
|
||
(Clifton H. Morris, Jr.)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ ELLEN OCHOA*
|
|
Director
|
|
February 16, 2016
|
||
(Ellen Ochoa)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ W. BLAIR WALTRIP*
|
|
Director
|
|
February 16, 2016
|
||
(W. Blair Waltrip)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ MARCUS A. WATTS*
|
|
Director
|
|
February 16, 2016
|
||
(Marcus A. Watts)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ EDWARD E. WILLIAMS*
|
|
Director
|
|
February 16, 2016
|
||
(Edward E. Williams)
|
|
|
|
|
||
|
|
|
|
|
||
*By
|
/s/ GREGORY T. SANGALIS
|
|
|
|
February 16, 2016
|
|
|
(Gregory T. Sangalis, as
Attorney-In-Fact for each of the Persons indicated) |
|
|
|
|
Exhibit Number
|
|
|
Description
|
||
3.1
|
|
|
—
|
|
Restated Articles of Incorporation. (Incorporated by reference to Exhibit 3.1 to Registration Statement No. 333-10867 on Form S-3).
|
3.2
|
|
|
—
|
|
Articles of Amendment to Restated Articles of Incorporation. (Incorporated by reference to Exhibit 3.1 to Form 10-Q for the fiscal quarter ended September 30, 1996).
|
3.3
|
|
|
—
|
|
Statement of Resolution Establishing Series of Shares of Series D Junior Participating Preferred Stock, dated July 27, 1998. (Incorporated by reference to Exhibit 3.2 to Form 10-Q for the fiscal quarter ended June 30, 1998).
|
3.4
|
|
|
—
|
|
Bylaws, as amended. (Incorporated by reference to Exhibit 3.4 to Form 10-K for the year ended December 31, 2013).
|
4.1
|
|
|
—
|
|
Senior Indenture dated as of February 1, 1993 by and between the Company and The Bank of New York, as trustee. (Incorporated by reference as Exhibit 4.1 to Form S-4 filed September 2, 2004 (File No. 333-118763)).
|
4.2
|
|
|
—
|
|
Agreement of Resignation, Appointment of Acceptance, dated October 21, 2005, among the Company, The Bank of New York and The Bank of New York Trust Company, N.A., appointing a successor trustee for the Senior Indenture dated as of February 1, 1993. (Incorporated by reference to Exhibit 4.1 to Form 10-Q for the fiscal quarter ended June 30, 2005).
|
10.1
|
|
|
—
|
|
Retirement Plan For Non-Employee Directors. (Incorporated by reference to Exhibit 10.1 to Form 10-K for the fiscal year ended December 31, 1991).
|
10.2
|
|
|
—
|
|
First Amendment to Retirement Plan For Non-Employee Directors. (Incorporated by reference to Exhibit 10.2 to Form 10-K for the fiscal year ended December 31, 2000).
|
10.3
|
|
|
—
|
|
Second Amendment to Retirement Plan for Non-Employee Directors. (Incorporated by reference to Exhibit 10.3 to Form 10-K for the fiscal year ended December 31, 2010).
|
10.4
|
|
|
—
|
|
Employment Agreement, dated December 28, 2006, between SCI Executive Services, Inc. and R.L. Waltrip (including Non-Competition Agreement and Amendment to Employment Agreement, dated November 11, 1991, among the Company, R. L. Waltrip and Claire Waltrip). (Incorporated by reference to Exhibit 10.4 to Form 10-K for the fiscal year ended December 31, 2006).
|
10.5
|
|
|
—
|
|
Amendment to Employment and Noncompetition Agreement, dated November 30, 2007, between SCI Executive Services, Inc. and R. L. Waltrip. (Incorporated by reference to Exhibit 10.5 to Form 10-K for the fiscal year ended December 31, 2007).
|
10.6
|
|
|
—
|
|
Amendment to Employment and Noncompetition Agreement, dated December 1, 2010, between SCI Executive Services, Inc. and R.L. Waltrip. (Incorporated by reference to Exhibit 10.7 to Form 10-K for the fiscal year ended December 31, 2010).
|
10.7
|
|
|
—
|
|
Employment and Noncompetition Agreement, dated January 1, 2004, between SCI Executive Services, Inc. and Thomas L. Ryan. (Incorporated by reference to Exhibit 10.9 to Form 10-K for the fiscal year ended December 31, 2003).
|
10.8
|
|
|
—
|
|
Addendum to Employment and Noncompetition Agreement, dated December 1, 2005, between SCI Executive Services, Inc. and Thomas L. Ryan. (Incorporated by reference to Exhibit 10.12 to Form 10-K for the fiscal year ended December 31, 2005).
|
10.9
|
|
|
—
|
|
Amendment to Employment and Noncompetition Agreement, dated November 30, 2007, between SCI Executive Services, Inc. and Thomas L. Ryan. (Incorporated by reference to Exhibit 10.8 to Form 10-K for fiscal year ended December 31, 2007).
|
10.10
|
|
|
—
|
|
Amendment to Employment and Noncompetition Agreement, dated December 1, 2010, between SCI Executive Services, Inc. and Thomas L. Ryan. (Incorporated by reference to Exhibit 10.11 to Form 10-K for the fiscal year ended December 31, 2010).
|
10.11
|
|
|
—
|
|
Employment and Noncompetition Agreement, dated January 1, 2004, between SCI Executive Services, Inc. and Michael R. Webb. (Incorporated by reference to Exhibit 10.10 to Form 10-K for the fiscal year ended December 31, 2003).
|
10.12
|
|
|
—
|
|
Addendum to Employment and Noncompetition Agreement, dated December 1, 2005, between SCI Executive Services, Inc. and Michael R. Webb. (Incorporated by reference to Exhibit 10.14 to Form 10-K for the fiscal year ended December 31, 2005).
|
10.13
|
|
|
—
|
|
Amendment to Employment and Noncompetition Agreement, dated November 30, 2007, between SCI Executive Services, Inc. and Michael R. Webb. (Incorporated by reference to Exhibit 10.11 to Form 10-K for the fiscal year ended December 31, 2007).
|
Exhibit Number
|
|
|
Description
|
||
10.14
|
|
|
—
|
|
Amendment to Employment and Noncompetition Agreement, dated December 1, 2010, between SCI Executive Services, Inc. and Michael R. Webb. (Incorporated by reference to Exhibit 10.15 to Form 10-K for the fiscal year ended December 31, 2010).
|
10.15
|
|
|
—
|
|
Employment and Noncompetition Agreement, dated December 28, 2006 between SCI Executive Services, Inc. and Eric D. Tanzberger. (Incorporated by reference to Exhibit 10.11 to Form 10-K for the fiscal year ended December 31, 2006).
|
10.16
|
|
|
—
|
|
Amendment to Employment and Noncompetition Agreement, dated November 30, 2007, between SCI Executive Services, Inc. and Eric D. Tanzberger. (Incorporated by reference to Exhibit 10.13 to Form 10-K for the fiscal year ended December 31, 2007).
|
10.17
|
|
|
—
|
|
Amendment to Employment and Noncompetition Agreement , dated December 1, 2010, between SCI Executive Services, Inc. and Eric D. Tanzberger. (Incorporated by reference to Exhibit 10.18 to Form 10-K for the fiscal year ended December 31, 2010).
|
10.18
|
|
|
—
|
|
Employment and Noncompetition Agreement, dated December 28, 2006, between SCI Executive Services, Inc. and Sumner J. Waring, III. (Incorporated by reference to Exhibit 10.9 to Form 10-K for the fiscal year ended December 31, 2006).
|
10.19
|
|
|
—
|
|
Amendment to Employment and Noncompetition Agreement, dated November 30, 2007, between SCI Executive Services, Inc. and Sumner J. Waring, III. (Incorporated by reference to Exhibit 10.15 to Form 10-K for the fiscal year ended December 31, 2009).
|
10.20
|
|
|
—
|
|
Amendment to Employment and Noncompetition Agreement, dated December 1, 2010, between SCI Executive Services, Inc. and Sumner J. Waring, III.
(Incorporated by reference to Exhibit 10.21 to Form 10-K for the fiscal year ended December 31, 2010).
|
10.21
|
|
|
—
|
|
Form of Employment and Noncompetition Agreement pertaining to non-senior officers. (Incorporated by reference to Exhibit 10.12 to Form 10-K for the fiscal year ended December 31, 2003).
|
10.22
|
|
|
—
|
|
Form of Addendum to Employment and Noncompetition Agreement pertaining to the preceding exhibit. (Incorporated by reference to Exhibit 10.20 to Form 10-K for the fiscal year ended December 31, 2005).
|
10.23
|
|
|
—
|
|
Form of Amendment to Employment and Noncompetition Agreement dated November 30, 2007, between SCI Executive Services, Inc. and non-senior officers. (Incorporated by reference to Exhibit 10.18 to Form 10-K for the fiscal year ended December 31, 2007).
|
10.24
|
|
|
—
|
|
Form of Amendment to Employment and Noncompetition Agreement, dated December 1, 2010, between SCI Executive Services, Inc. and non-senior officers. (Incorporated by reference to Exhibit 10.25 to Form 10-K for the fiscal year ended December 31, 2010).
|
10.25
|
|
|
—
|
|
Amended 1996 Incentive Plan. (Incorporated by reference to Appendix A to Proxy Statement dated April 6, 2007).
|
10.26
|
|
|
—
|
|
Amended and Restated Incentive Plan. (Incorporated by reference to Appendix B to Proxy Statement dated April 1, 2011).
|
10.27
|
|
|
—
|
|
Supplemental Executive Retirement Plan for Senior Officers (as amended and restated effective as of January 1, 1998). (Incorporated by reference to Exhibit 10.28 to Form 10-K for the fiscal year ended December 31, 1998).
|
10.28
|
|
|
—
|
|
First Amendment to Supplemental Executive Retirement Plan for Senior Officers. (Incorporated by reference to Exhibit 10.28 to Form 10-K for the fiscal year ended December 31, 2000).
|
10.29
|
|
|
—
|
|
SCI 401(k) Retirement Savings Plan, consisting of the Charles Schwab Defined Contribution Plan and Trust, Basic Plan Document #01; the Adoption Agreements to the SCI 401(k) Retirement Savings Plan and the SCI Union 401(k) Retirement Savings Plan, each as amended effective July 1, 2014, and the Directed Employee Benefit Trust Agreement between Service Corporation International and Charles Schwab Bank. (Incorporated by reference to Exhibit 10.1 to Form 10-Q for the quarterly period ended June 30, 2014).
|
10.30
|
|
|
—
|
|
Amended and Restated Director Fee Plan. (Incorporated by reference to Annex C to Proxy Statement dated April 1, 2011).
|
10.31
|
|
|
—
|
|
Amendment One to the Service Corporation International Amended and Restated Director Fee Plan, dated May 12, 2015. (Incorporated by reference to Exhibit 10.1 to Form 8-K dated May 18, 2015).
|
10.32
|
|
|
—
|
|
Form of Indemnification Agreement for officers and directors. (Incorporated by reference to Exhibit 10.1 to Form 10-Q for the quarterly period ended September 30, 2004).
|
10.33
|
|
|
—
|
|
Form of Executive Deferred Compensation Plan as Amended and Restated Effective December 8, 2009. (Incorporated by reference to Exhibit 10.42 to Form 10-K for the fiscal year ended December 31, 2009.)
|
10.34
|
|
|
—
|
|
Amendment One to Executive Deferred Compensation Plan. (Incorporated by reference to Exhibit 10.50 to Form 10-K for the fiscal year ended December 31, 2010).
|
10.35
|
|
|
—
|
|
Amendment Two to Executive Deferred Compensation Plan. (Incorporated by reference to Exhibit 10.1 to Form 10-Q for the quarterly period ended September 30, 2014).
|
Exhibit Number
|
|
|
Description
|
||
10.36
|
|
|
—
|
|
Amendment Three to Executive Deferred Compensation Plan. (Incorporated by reference to Exhibit 10.35 to Form 10-K for the fiscal year ended December 31, 2014).
|
10.37
|
|
|
—
|
|
Form of Performance Unit Grant Award Agreement.
|
10.38
|
|
|
—
|
Credit Agreement, dated as of July 2, 2013 among Service Corporation International, the Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent for the lenders (Incorporated by reference to Exhibit 10.1 to Form 8-K dated July 8, 2013.)
|
|
10.39
|
|
|
—
|
First Amendment to Credit Agreement, dated as of October 19, 2015, among Service Corporation International, the guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent for the lenders. (Incorporated by reference to Exhibit 10.1 to Form 8-K dated October 22, 2015.)
|
|
12.1
|
|
|
—
|
|
Ratio of Earnings to Fixed Charges.
|
21.1
|
|
|
—
|
|
Subsidiaries of the Company.
|
23.1
|
|
|
—
|
|
Consent of Independent Registered Public Accounting Firm (PricewaterhouseCoopers LLP).
|
24.1
|
|
|
—
|
|
Powers of Attorney.
|
31.1
|
|
|
—
|
|
Certification of Thomas L. Ryan as Principal Executive Officer in satisfaction of Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
|
|
—
|
|
Certification of Eric D. Tanzberger as Principal Financial Officer in satisfaction of Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
|
|
—
|
|
Certification of Periodic Financial Reports by Thomas L. Ryan as Principal Executive Officer in satisfaction of Section 906 of the Sarbanes- Oxley Act of 2002.
|
32.2
|
|
|
—
|
|
Certification of Periodic Financial Reports by Eric D. Tanzberger as Principal Financial Officer in satisfaction of Section 906 of the Sarbanes-Oxley Act of 2002.
|
101
|
|
|
—
|
|
Interactive data file.
|
SCI Weighted Average Total Shareholder Return Ranking Relative to Comparator Group at End of Performance Cycle
|
Ranking
|
% of Target Award Paid as Incentive
(Performance Settlement Factor)
|
Maximum
|
75
th
% or greater
|
200%
|
|
70
th
%ile
|
180%
|
|
65
th
%ile
|
160%
|
|
60
th
%ile
|
140%
|
|
55
th
%ile
|
120%
|
Target
|
50
th
%ile
|
100%
|
|
45
th
%ile
|
85%
|
|
40
th
%ile
|
70%
|
|
35
th
%ile
|
55%
|
|
30
th
%ile
|
40%
|
Threshold
|
25
th
%ile
|
25%
|
Below Threshold
|
Less than 25
th
%ile
|
0%
|
•
|
Calculation of awards for performance levels between Target and Maximum, or Threshold and Target will be calculated using straight-line interpolation.
|
•
|
If mergers and acquisitions result in a reduction in the number of peer group companies during the cycle, these percentile rankings will reflect the Comparator Group companies still intact at the end of the performance cycle.
|
•
|
In the event SCI’s TSR is negative at the end of the performance period, no payment hereunder will exceed the Target in the schedule above.
|
|
Twelve months ended December 31,
|
||||||||||||||
|
2015
|
2014
|
2013
|
2012
|
2011
|
||||||||||
Earnings:
|
|
|
|
|
|
||||||||||
Pretax income
|
$
|
370,351
|
|
$
|
402,600
|
|
$
|
245,206
|
|
245,283
|
|
225,140
|
|
||
Add fixed charges as adjusted (from below)
|
182,484
|
|
188,362
|
|
150,410
|
|
142,634
|
|
140,798
|
|
|||||
|
$
|
552,835
|
|
$
|
590,962
|
|
$
|
395,616
|
|
$
|
387,917
|
|
$
|
365,938
|
|
Fixed charges:
|
|
|
|
|
|
||||||||||
Interest expense:
|
|
|
|
|
|
||||||||||
Corporate
|
163,463
|
|
168,746
|
|
136,917
|
|
130,163
|
|
129,346
|
|
|||||
Amortization of deferred financing costs
|
9,434
|
|
8,825
|
|
5,443
|
|
4,905
|
|
4,436
|
|
|||||
1/3 of rental expense
|
9,587
|
|
10,791
|
|
8,050
|
|
7,566
|
|
7,016
|
|
|||||
Fixed charges
|
$
|
182,484
|
|
$
|
188,362
|
|
$
|
150,410
|
|
$
|
142,634
|
|
$
|
140,798
|
|
Ratio (earnings divided by fixed charges)
|
3.03
|
|
3.14
|
|
2.63
|
|
2.72
|
|
2.60
|
|
Keystone Michigan, Inc.
|
100%
|
|
|||||||||
Healy-Hahn Funeral Properties, Inc.
|
100%
|
|
|||||||||
SCI Cerberus, Inc.
|
.07%
|
|
|||||||||
Keystone Advance Planning, Inc.
|
100%
|
|
|||||||||
SCI Operation Resources, Inc.
|
100%
|
|
|||||||||
SCI Shared Services, Inc.
|
100%
|
|
|||||||||
SCI Special, Inc.
|
100%
|
|
|||||||||
SCI Administrative Services, LLC-
General Partner of
|
100%
|
|
|||||||||
SCI Management L.P
|
1%
|
|
|||||||||
Remembrance Memorial Traditions, LLC- Limited Partner of
|
100%
|
|
|||||||||
SCI Management L.P.
|
99%
|
|
|||||||||
Dignity Memorial Network, Inc
|
100%
|
|
|||||||||
SCI Western Market Support Center, Inc. (CA LLC)
|
|||||||||||
SCI Funeral & Cemetery Purchasing Cooperative, Inc.
|
25%
|
|
|||||||||
SCI Western Market Support Center, LLC - General Partner
|
|||||||||||
and SCI Management L.P. - Limited Partner of
|
|||||||||||
SCI Eastern Market Support Center, L.P. (TX LP)
|
|||||||||||
SCI Funeral & Cemetery Purchasing Cooperative,Inc.
|
25%
|
|
|||||||||
SCI Western Market Support Center, LLC - General Partner
|
|||||||||||
and SCI Management L.P. - Limited Partner of
|
|||||||||||
Houston Market Support Center, L.P (TX LP)
|
|||||||||||
SCI Funeral & Cemetery Purchasing Cooperative,Inc.
|
25%
|
|
|||||||||
SCI Capital Corporation
|
100%
|
|
|||||||||
CMSD, LLC
|
100%
|
|
|||||||||
FMSD, LLC
|
100%
|
|
|||||||||
SCI Capital Holdings, Inc.
|
100%
|
|
|||||||||
Wilson Financial Group, Inc.
|
77.7%
|
|
|||||||||
Amistad Corporation
|
100%
|
|
|||||||||
Wilson Holdings, Inc. (TX Corp) Delaware subsidiary
|
|||||||||||
M.J. Edwards Hillside Chapel, Inc.
|
100%
|
|
|||||||||
SCI Direct, Inc. (FL Corp) Delaware subsidiary
|
|||||||||||
Neptune Reef Services, LLC
|
100%
|
|
|||||||||
Neptune Society of America, Inc. (CA Corp)
|
|||||||||||
Neptune Management Corp. (CA Corp)
|
|||||||||||
Neptune Management (KY), LLC
|
100%
|
|
|||||||||
Alderwoods Group, LLC
|
100%
|
|
|||||||||
Alderwoods (Mississippi), Inc.
|
100%
|
|
|||||||||
American Burial and Cremation Centers, Inc.
|
100%
|
|
|||||||||
H. P. Brandt Funeral Home, Inc.
|
100%
|
|
|||||||||
Osiris Holding Corporation
|
100%
|
|
|||||||||
Rose Hills Company
|
100%
|
|
|||||||||
Rose Hills Company
|
100%
|
|
|||||||||
RH Cemetery Corp.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp) Delaware subsidiary
|
|||||||||||
Stewart International (Netherlands) LLC
|
100%
|
|
|||||||||
Stewart Cementerios Puerto Rico Holding II, LLC
|
100%
|
|
Stewart Cementerios Puerto Rico Holding I, LLC
|
100%
|
|
|||||||||
Stewart Funerarias Puerto Rico Holding II, LLC
|
100%
|
|
|||||||||
Stewart Funerarias Puerto Rico Holding I, LLC
|
100%
|
|
|||||||||
Stewart Simplicity Plan of Puerto Rico Holding II, LLC
|
100%
|
|
|||||||||
Stewart Simplicity Plan of Puerto Rico Holding I, LLC
|
100%
|
|
|||||||||
|
|||||||||||
DISTRICT OF COLUMBIA
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) DC subsidiaries
|
|||||||||||
Joseph Gawler’s Sons, LLC
|
99%
|
|
|||||||||
Witzke Funeral Homes, Inc.
|
100%
|
|
|||||||||
|
|
||||||||||
FLORIDA
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Florida subsidiary
|
|||||||||||
SCI Funeral Services of Florida, LLC
|
99%
|
|
|||||||||
Florida Marker, LLC
|
100%
|
|
|||||||||
Oaklawn Cemetery Association
|
100%
|
|
|||||||||
WPALM, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC)
|
|||||||||||
Alderwoods (Minnesota), Inc. (MN Corp) Florida subsidiary
|
|||||||||||
SCI Funeral Services of Florida, LLC
|
1%
|
|
|||||||||
Osiris Holding Corporation (DE Corp) Florida subsidiary
|
|||||||||||
Osiris Holding of Florida, Inc.
|
100%
|
|
|||||||||
SCI Special, Inc. (DE Corp)
|
|||||||||||
SCI Capital Corporation (DE Corp)
|
|||||||||||
SCI Capital Holdings, Inc. (DE Corp) Florida subsidiary
|
|||||||||||
SCI Direct, Inc.
|
100%
|
|
|||||||||
Neptune Insurance Agency, Inc.
|
100%
|
|
|||||||||
Neptune Society of America, Inc. (CA Corp)
|
|||||||||||
Neptune Management Corp. (CA Corp)
|
|||||||||||
NCS Marketing Services, LLC
|
100%
|
|
|||||||||
Wilson Financial Group, Inc. (DE Corp)
|
|||||||||||
Wilson Holdings, Inc. (TX Corp) Florida subsidiaries
|
|||||||||||
Holmes Funeral Directors, Inc.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp) Florida subsidiary
|
|||||||||||
Cemetery Management, Inc.
|
100%
|
|
|||||||||
S.E. Cemeteries of Florida, LLC
|
100%
|
|
|||||||||
S.E. Combined Services of Florida, LLC
|
100%
|
|
|||||||||
S.E. Funeral Homes of Florida, LLC
|
100%
|
|
|||||||||
The Simplicity Plan, Inc.
|
100%
|
|
|||||||||
|
|||||||||||
GEORGIA
|
|||||||||||
Alderwoods Group, LLC (DE LLC) Georgia subsidiary
|
|||||||||||
Alderwoods (Georgia), LLC
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp) Georgia subsidiary
|
|||||||||||
Eastlawn Corporation
|
100%
|
|
|||||||||
Holly Hill Memorial Park, Inc.
|
100%
|
|
Alderwoods (Indiana), Inc.
|
11.5%
|
|
|||||||||
SCI Special, Inc. (DE Corp)
|
|||||||||||
SCI Capital Corporation (DE Corp)
|
|||||||||||
SCI Capital Holdings, Inc. (DE Corp)
|
|||||||||||
Wilson Financial Group, Inc. (DE Corp)
|
|||||||||||
Wilson Holdings, Inc. (TX Corp) Indiana subsidiary
|
|||||||||||
WFG-Williams & Bluitt Funeral Home, Inc.
|
100%
|
|
|||||||||
|
|||||||||||
IOWA
|
|||||||||||
SCI Funeral Services, LLC
|
100%
|
|
|||||||||
SCI Iowa Funeral Services, Inc
|
100%
|
|
|||||||||
|
|||||||||||
KANSAS
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Kansas subsidiary
|
|||||||||||
SCI Kansas Funeral Services, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Kansas subsidiary
|
|||||||||||
Alderwoods (Kansas), Inc.
|
100%
|
|
|||||||||
|
|||||||||||
KENTUCKY
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Kentucky subsidiary
|
|||||||||||
SCI Kentucky Funeral Services, Inc.
|
99%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Kentucky subsidiaries
|
|||||||||||
Alderwoods (Partner), Inc.
|
100%
|
|
|||||||||
|
|||||||||||
LOUISIANA
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Louisiana subsidiary
|
|||||||||||
SCI Louisiana Funeral Services, Inc.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp)
|
100%
|
|
|||||||||
Ballyhoo Innovations, Inc.
|
100%
|
|
|||||||||
Empresas Stewart-Funerarias, Inc.
|
100%
|
|
|||||||||
Enduring Memories, Inc.
|
100%
|
|
|||||||||
Lake Lawn Metairie Funeral Home (joint venture)
|
51%
|
|
|||||||||
Lake Lawn Park, LLC
|
98.4%
|
|
|||||||||
S.E. South-Central, LLC
|
100%
|
|
|||||||||
Stewart Resource Center, LLC
|
100%
|
|
|||||||||
Acme Mausoleum, LLC
|
100%
|
|
|||||||||
S.E. Cemeteries of Louisiana, LLC
|
100%
|
|
|||||||||
Heaven’s Pets at Lakelawn Metairie, LLC
|
60%
|
|
|||||||||
S.E. Funeral Homes of Louisiana, LLC
|
100%
|
|
|||||||||
Lake Lawn Metairie Funeral Home-(joint venture)
|
49%
|
|
|||||||||
Stewart Services, LLC
|
100%
|
|
|||||||||
Sympathyshop.com, LLC
|
100%
|
|
|||||||||
Stewart Enterprises (Europe) Inc.
|
100%
|
|
|||||||||
|
|||||||||||
MARYLAND
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Maryland subsidiaries
|
SCI Maryland Funeral Services, Inc.
|
100%
|
|
|||||||||
BAMFH, Inc
|
100%
|
|
|||||||||
Burgee-Henss-Seitz Funeral Home, Inc.
|
100%
|
|
|||||||||
Charles S. Zeiler & Son, Inc.
|
100%
|
|
|||||||||
Gary L. Kaufman Funeral Home at
|
|||||||||||
Meadowridge Memorial Park, Inc.
|
100%
|
|
|||||||||
Gary L. Kaufman Funeral Home Southwest, Inc.
|
100%
|
|
|||||||||
George Washington Cemetery Company, LLC
|
100%
|
|
|||||||||
Lemmon Funeral Home of Dulaney Valley, Inc.
|
100%
|
|
|||||||||
Loring Byers Funeral Directors, Inc.
|
100%
|
|
|||||||||
Miller-Dippel Funeral Home, Inc.
|
100%
|
|
|||||||||
Moran-Ashton Funeral Home, Inc.
|
100%
|
|
|||||||||
National Cremation Service, Inc.
|
100%
|
|
|||||||||
Sterling-Ashton-Schwab Funeral Home, Inc.
|
100%
|
|
|||||||||
Sterling-Ashton-Schwab-Witzke Funeral Home
|
|||||||||||
of Catonsville, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Maryland subsidiary
|
|||||||||||
Alderwoods (Maryland), Inc.
|
100%
|
|
|||||||||
SCI International, LLC (DE LLC)
|
|||||||||||
Keystone America, Inc. (DE Corp) Maryland subsidiaries
|
|||||||||||
Schimunek Funeral Home, Inc.
|
100%
|
|
|||||||||
The Schimunek Funeral Home of Bel Air, Inc.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp) Maryland subsidiary
|
|||||||||||
S.E. Mid-Atlantic, LLC
|
100%
|
|
|||||||||
Bounds Funeral Home, Inc.
|
100%
|
|
|||||||||
Cedar Hill Cemetery Company, Inc.
|
100%
|
|
|||||||||
Crest Lawn Memorial Gardens, Inc.
|
100%
|
|
|||||||||
Fort Lincoln Cemetery, Inc.
|
100%
|
|
|||||||||
Fort Lincoln Funeral Home, Inc.
|
100%
|
|
|||||||||
Hillcrest Memorial Cemetery, Inc.
|
100%
|
|
|||||||||
Hines-Rinaldi Funeral Home, Inc.
|
100%
|
|
|||||||||
John M. Taylor Funeral Home, Inc.
|
100%
|
|
|||||||||
Loudon Park Cemetery Company
|
100%
|
|
|||||||||
Parklawn, Inc.
|
100%
|
|
|||||||||
S.E. Cemeteries of Maryland, Inc.
|
100%
|
|
|||||||||
Nailknot ,LLC
|
100%
|
|
|||||||||
Simple Tribute of Maryland, Inc.
|
100%
|
|
|||||||||
The Parkwood Cemetery Company
|
100%
|
|
|||||||||
The Parkwood Management Company
|
100%
|
|
|||||||||
William W. Chambers, Inc.
|
100%
|
|
|||||||||
|
|||||||||||
MASSACHUSETTS
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Massachusetts subsidiaries
|
|||||||||||
Affiliated Family Funeral Service, Inc.
|
100%
|
|
|||||||||
AFFS Boston, Inc.
|
0.6%
|
|
|||||||||
AFFS Brookline, Inc
|
2.5%
|
|
AFFS North, Inc.
|
10%
|
|
|||||||||
AFFS Norwood, Inc.
|
6.675%
|
|
|||||||||
AFFS Quincy, Inc.
|
5%
|
|
|||||||||
AFFS Salem, Inc
|
10%
|
|
|||||||||
AFFS Southcoast East, Inc.
|
.06%
|
|
|||||||||
AFFS Southcoast West, Inc.
|
.06%
|
|
|||||||||
AFFS West, Inc.
|
10%
|
|
|||||||||
Stanetsky Memorial Chapels, Inc.
|
10%
|
|
|||||||||
Sullivan Funeral Homes, Inc.
|
10%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Massachusetts subsidiaries
|
|||||||||||
Cuffe-McGinn Funeral Home, Inc.
|
10%
|
|
|||||||||
Doane Beal & Ames, Inc.
|
10%
|
|
|||||||||
Ernest A. Richardson Funeral Home, Inc.
|
10%
|
|
|||||||||
Alderwoods (Massachusetts), Inc.
|
100%
|
|
|||||||||
SCI International, LLC (DE LLC)
|
|||||||||||
SCI Cerberus, LLC (DE LLC)
|
|||||||||||
Keystone America, Inc. (DE Corp) Mass. subsidiary
|
|||||||||||
Nickerson-Bourne Funeral Homes, Inc.
|
10%
|
|
|||||||||
|
|||||||||||
MICHIGAN
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Michigan subsidiary
|
|||||||||||
SCI Michigan Funeral Services, Inc.
|
100%
|
|
|||||||||
SCI Virginia Funeral Services, Inc. (VA Corp) Michigan subsidiaries
|
|||||||||||
AMG, Inc.
|
100%
|
|
|||||||||
WMP, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Michigan subsidiary
|
|||||||||||
Alderwoods (Michigan), Inc.
|
100%
|
|
|||||||||
|
|||||||||||
MINNESOTA
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Minnesota subsidiaries
|
|||||||||||
SCI Minnesota Funeral Services, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Minnesota subsidiary
|
|||||||||||
Alderwoods (Minnesota), Inc.
|
100%
|
|
|||||||||
|
|||||||||||
MISSISSIPPI
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Mississippi subsidiary
|
|||||||||||
SCI Mississippi Funeral Services, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Mississippi subsidiaries
|
|||||||||||
Family Care, Inc.
|
100%
|
|
|||||||||
Alderwoods (Mississippi), Inc. (DE Corp) Mississippi subsidiaries
|
|||||||||||
Stephens Burial Association, Inc.
|
100%
|
|
|||||||||
Stephens Funeral Benefit Association, Inc.
|
100%
|
|
|||||||||
Stephens Funeral Fund, Inc.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp) Mississippi subsidiary
|
|||||||||||
Lakewood Memorial Park, Inc.
|
100%
|
|
|||||||||
|
MISSOURI
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Missouri subsidiaries
|
|||||||||||
SCI Missouri Funeral Services, Inc.
|
100%
|
|
|||||||||
Memorial Guardian Plans, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Missouri subsidiary
|
|||||||||||
Alderwoods (Missouri), Inc.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp)
|
|||||||||||
S.E. South-Central, LLC (LA Corp) Missouri subsidiaries
|
|||||||||||
D.W. Newcomer’s Sons, Inc.
|
100%
|
|
|||||||||
DWN Properties, Inc.
|
100%
|
|
|||||||||
Funeral Security Plans, Inc.
|
100%
|
|
|||||||||
|
|||||||||||
MONTANA
|
|||||||||||
Alderwoods Group, LLC (DE LLC) Montana subsidiary
|
|||||||||||
Alderwoods (Montana), Inc.
|
100%
|
|
|||||||||
|
|||||||||||
NEBRASKA
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Nebraska subsidiary
|
|||||||||||
SCI Nebraska Funeral Services, Inc.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp)
|
|||||||||||
S.E. South-Central, LLC (LA Corp) Nebraska subsidiaries
|
|||||||||||
The Lincoln Memorial Park Cemetery Association
|
100%
|
|
|||||||||
West Lawn Cemetery
|
100%
|
|
|||||||||
|
|||||||||||
NEVADA
|
|||||||||||
Alderwoods Group, LLC (DE LLC) Nevada subsidiary
|
|||||||||||
Alderwoods (Nevada), Inc.
|
100%
|
|
|||||||||
Knauss Enterprises Limited Liability Company
|
100%
|
|
|||||||||
Palm Mortuary, Inc.
|
100%
|
|
|||||||||
|
|||||||||||
NEW HAMPSHIRE
|
|||||||||||
Alderwoods Group, LLC (DE LLC) New Hampshire subsidiaries
|
|||||||||||
McHugh Funeral Home, Inc.
|
100%
|
|
|||||||||
Robert Douglas Goundrey Funeral Home, Inc.
|
100%
|
|
|||||||||
St. Laurent Funeral Home, Inc.
|
100%
|
|
|||||||||
Alderwoods (Massachusetts), Inc. – New Hampshire subsidiary
|
|||||||||||
ZS Acquisition, Inc.
|
100%
|
|
|||||||||
|
|||||||||||
NEW JERSEY
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) New Jersey subsidiaries
|
|||||||||||
SCI New Jersey Funeral Services, Inc.
|
100%
|
|
|||||||||
Garden State Crematory, Inc.
|
100%
|
|
|||||||||
Wien & Wien, Inc.
|
100%
|
|
|||||||||
SCI International, LLC (DE Corp)
|
|||||||||||
Keystone America, Inc. (DE Corp) New Jersey subsidiary
|
|||||||||||
Zarro Funeral Home
|
100%
|
|
J.P. Finley and Son Mortuary, Inc.
|
100%
|
|
|||||||||
Sunset Hills Memorial Park
|
100%
|
|
|||||||||
|
|||||||||||
PENNSYLVANIA
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Pennsylvania subsidiaries
|
|||||||||||
SCI Pennsylvania Funeral Services, Inc.
|
100%
|
|
|||||||||
Auman Funeral Home, Inc.
|
100%
|
|
|||||||||
Ed Melenyzer Co.
|
100%
|
|
|||||||||
Funeral Service Pennsylvania, LLC
|
100%
|
|
|||||||||
Laughlin Funeral Home, Ltd.
|
100%
|
|
|||||||||
Robert L. Hendricks Funeral Home, Inc.
|
100%
|
|
|||||||||
Rohland Funeral Home
|
100%
|
|
|||||||||
Harold B. Mulligan Co., Inc.
|
100%
|
|
|||||||||
Theo. C. Auman, Inc.
|
100%
|
|
|||||||||
Auman's, Inc.
|
100%
|
|
|||||||||
Francis F. Seidel, Inc.
|
100%
|
|
|||||||||
Memorial Guardian Plans, Inc. (DE Corp) Pennsylvania subsidiary
|
|||||||||||
Ensure Agency of Pennsylvania, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Pennsylvania subsidiaries
|
|||||||||||
Bright Undertaking Company
|
100%
|
|
|||||||||
H. Samson, Inc.
|
100%
|
|
|||||||||
Knee Funeral Home of Wilkinsburg, Inc.
|
100%
|
|
|||||||||
Nineteen Thirty-Five Holdings, Inc.
|
100%
|
|
|||||||||
Osiris Holding Corporation (DE Corp) Pennsylvania subsidiary
|
|||||||||||
Oak Woods Management Company
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp)
|
|||||||||||
S.E. Mid-Atlantic, Inc. (MD Corp) Pennsylvania subsidiaries
|
|||||||||||
George Washington Memorial Park, Inc.
|
100%
|
|
|||||||||
S.E. Acquisition of Pennsylvania subsidiary
|
100%
|
|
|||||||||
Sunset Memorial Park Company
|
100%
|
|
|||||||||
|
|||||||||||
RHODE ISLAND
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Rhode Island subsidiary
|
|||||||||||
SCI Rhode Island Funeral Services, LLC
|
100%
|
|
|||||||||
|
|||||||||||
SOUTH CAROLINA
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) South Carolina subsidiary
|
|||||||||||
SCI South Carolina Funeral Services, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) South Carolina subsidiaries
|
|||||||||||
Alderwoods (South Carolina), Inc.
|
44%
|
|
|||||||||
Carothers Holding Company, LLC (NC LLC) North Carolina subsidiary
|
|||||||||||
Alderwoods (South Carolina), Inc.
|
56%
|
|
|||||||||
Alderwoods (Georgia), Inc. (GA Corp) North Carolina subsidiary
|
|||||||||||
Graceland Cemetery Development Co.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp)
|
|||||||||||
S.E. Mid-Atlantic, Inc. (MD Corp) South Carolina subsidiaries
|
Dunbar Funeral Home
|
100%
|
|
|||||||||
S.E. Cemeteries of South Carolina, Inc.
|
100%
|
|
|||||||||
S.E. Combined Services of South Carolina, Inc.
|
100%
|
|
|||||||||
S.E. Funeral Homes of South Carolina, Inc.
|
100%
|
|
|||||||||
|
|||||||||||
TENNESSEE
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Tennessee subsidiaries
|
|||||||||||
SCI Tennessee Funeral Services, LLC
|
100%
|
|
|||||||||
SCI Special, Inc. (DE Corp)
|
|||||||||||
SCI Capital Corporation (DE Corp)
|
|||||||||||
SCI Capital Holdings, Inc. (DE Corp)
|
|||||||||||
Wilson Financial Group, Inc. (DE Corp) Tennessee subsidiary
|
|||||||||||
Southern Funeral Home, Inc.
|
100%
|
|
|||||||||
Amistad Corporation (DE Corp) Tennessee subsidiary
|
|||||||||||
Franklin-Strickland Funeral Home, Inc.
|
100%
|
|
|||||||||
Wilson Holdings, Inc. (TX Corp) Tennessee subsidiaries
|
|||||||||||
M. J. Edwards & Sons Funeral Home, Inc.
|
100%
|
|
|||||||||
M. J. Edwards-Whitehaven Funeral Chapel, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Tennessee subsidiaries
|
|||||||||||
Alderwoods (Tennessee), LLC
|
100%
|
|
|||||||||
Eagle Financial Associates, Inc.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp)
|
|||||||||||
S.E. Mid-Atlantic, Inc. (MD Corp) Tennessee subsidiaries
|
|||||||||||
Monte Vista Burial Park, Inc.
|
100%
|
|
|||||||||
S.E. Combined Services of Tennessee, Inc.
|
100%
|
|
|||||||||
S.E. South-Central, LLC (LA LLC) Tennessee subsidiary
|
|||||||||||
S.E. Funeral Homes of Tennessee, Inc.
|
100%
|
|
|||||||||
The Nashville Historic Cemetery Association, Inc.
|
100%
|
|
|||||||||
|
|||||||||||
TEXAS
|
|||||||||||
Big Bend Insurance Company, Inc.
|
100%
|
|
|||||||||
SCI Funeral Services, LLC (Iowa LLC) Texas subsidiaries
|
|||||||||||
TMJ Land, Inc.
|
100%
|
|
|||||||||
SCI Texas Funeral Services, Inc. (DE Corp) Texas subsidiaries
|
|||||||||||
Dial Dunkin Enterprises, Inc.
|
100%
|
|
|||||||||
Eubank Funeral Home, Inc.
|
100%
|
|
|||||||||
FHC Realty, Inc.
|
100%
|
|
|||||||||
Pioneer Funeral Plans, Inc.
|
100%
|
|
|||||||||
WFG Liquidation Corporation
|
100%
|
|
|||||||||
Van Zandt County Haven of Memories, Inc.
|
100%
|
|
|||||||||
SCI Special, Inc. (DE Corp)
|
|||||||||||
SCI Capital Corporation (DE Corp) Texas subsidiary
|
|||||||||||
SCI Capital Holdings, Inc. (DE Corp)
|
|||||||||||
Wilson Financial Group, Inc. (DE Corp) Texas subsidiariary
|
|||||||||||
Wilson Holdings, Inc.
|
100%
|
|
|||||||||
Carl Barnes Funeral Home, Inc.
|
100%
|
|
|
/s/ Thomas L. Ryan
|
|
Thomas L. Ryan
Chairman of the Board and Chief Executive Officer (Principal Executive Officer) |
|
/s/ Eric D. Tanzberger
|
|
Eric D. Tanzberger
Senior Vice President Chief Financial Officer and Treasurer (Principal Financial Officer) |
|
/s/ Thomas L. Ryan
|
|
Thomas L. Ryan
Chairman of the Board and Chief Executive Officer (Principal Executive Officer) |
|
/s/ Eric D. Tanzberger
|
|
Eric D. Tanzberger
Senior Vice President Chief Financial Officer and Treasurer (Principal Financial Officer) |