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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, 2018
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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
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Smaller reporting company
o
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Emerging growth 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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33
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13
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46
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Arizona
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33
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|
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11
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44
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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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159
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38
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|
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197
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Colorado
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30
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11
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41
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Connecticut
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20
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|
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—
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|
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20
|
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Delaware
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—
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1
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|
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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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—
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|
|
1
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Florida
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139
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61
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|
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200
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Georgia
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34
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18
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|
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52
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Hawaii
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7
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3
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|
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10
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Idaho
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6
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|
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1
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|
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7
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Illinois
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38
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|
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24
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|
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62
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Indiana
|
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52
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|
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13
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|
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65
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Iowa
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5
|
|
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2
|
|
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7
|
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Kansas
|
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8
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|
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5
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|
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13
|
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Kentucky
|
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11
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|
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5
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16
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Louisiana
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24
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|
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10
|
|
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34
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Maine
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11
|
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—
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|
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11
|
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Maryland
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16
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|
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13
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|
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29
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Massachusetts
|
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27
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|
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—
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|
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27
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Michigan
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35
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|
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—
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|
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35
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Minnesota
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11
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2
|
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13
|
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Mississippi
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12
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3
|
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15
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Missouri
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25
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10
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35
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Nebraska
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9
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2
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11
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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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21
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—
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21
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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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64
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|
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—
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64
|
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North Carolina
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54
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17
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|
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71
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Ohio
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36
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|
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15
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|
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51
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Oklahoma
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13
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7
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20
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Oregon
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14
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4
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18
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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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5
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9
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14
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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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12
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9
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21
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Tennessee
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40
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18
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|
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58
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Texas
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171
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62
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233
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Utah
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4
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3
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7
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Virginia
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36
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24
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60
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Washington
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39
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15
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54
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West Virginia
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8
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10
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18
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Wisconsin
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—
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7
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7
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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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36
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7
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43
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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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12
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—
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12
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Ontario
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39
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—
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39
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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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1,481
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481
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1,962
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(1)
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Includes businesses held for sale at
December 31, 2018
.
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Years Ended December 31,
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2018
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2017
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2016
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Preneed funeral merchandise and service trust funds
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(4.9
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)%
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16.1
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%
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7.1
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%
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Preneed cemetery merchandise and service trust funds
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(5.2
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)%
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16.8
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%
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7.2
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%
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Cemetery perpetual care trust funds
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(3.0
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)%
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9.5
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%
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9.1
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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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•
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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 may not be available for other purposes, including to finance our working capital, capital expenditures, acquisitions, and general corporate costs or 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.
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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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Item 4.
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Mine Safety Disclosures.
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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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53
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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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60
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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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50
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Senior Vice President, Chief Financial Officer
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2000
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Gregory T. Sangalis
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63
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Senior Vice President, General Counsel and Secretary
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2007
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Elisabeth G. Nash
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57
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Senior Vice President, Operations Services
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2004
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Sumner J. Waring, III
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50
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Senior Vice President, Operations
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2002
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Steven A. Tidwell
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57
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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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51
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Vice President and Corporate Controller
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2010
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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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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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Approximate Dollar Value of
Shares That May Yet be Purchased Under the Program |
||||||
October 1, 2018 — October 31, 2018
|
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3,901
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|
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$
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42.21
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3,901
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|
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$
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194,266,758
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November 1, 2018 — November 30, 2018
|
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42,201
|
|
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$
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40.76
|
|
|
42,201
|
|
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192,546,810
|
|
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December 1, 2018 — December 31, 2018
|
|
—
|
|
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$
|
—
|
|
|
—
|
|
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192,546,810
|
|
|
|
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46,102
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|
|
|
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46,102
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|
|
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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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4.50 (Max)
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3.86
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Interest coverage ratio
|
3.00 (Min)
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|
5.05
|
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Years Ended December 31,
|
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2018
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2017
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2016
|
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(In millions)
|
||||||||||
IRS tax settlement
(1)
|
$
|
5.6
|
|
|
$
|
(34.2
|
)
|
|
$
|
—
|
|
Pension settlement payment
|
$
|
—
|
|
|
$
|
(6.3
|
)
|
|
$
|
—
|
|
Legal settlement, net of insurance recoveries
|
$
|
—
|
|
|
$
|
(11.5
|
)
|
|
$
|
—
|
|
Excess tax benefits from share-based awards
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(12.7
|
)
|
Acquisition, integration, and system transition costs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(11.7
|
)
|
(1)
|
See discussion regarding the IRS tax settlement in Note 5 in Part II, Item 8. Financial Statements.
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•
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a $
84.7 million
increase in cash receipts from customers,
|
•
|
a
$6.8 million
increase in General Agency (GA) and other receipts,
|
•
|
a
$1.7 million
increase in net trust withdrawals, and
|
•
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a $
72.9 million
decrease in cash tax payments as a result of tax reform and effective tax planning, excluding the tax items noted above; partially offset by
|
•
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a
$50.6 million
increase in employee compensation,
|
•
|
a
$41.7 million
increase in vendor and other payments.
|
•
|
a
$19.0 million
increase in cash interest paid.
|
•
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a $6.3 million increase in insurance proceeds; partially offset by
|
•
|
a $5.3 million decrease in General Agency (GA) and other receipts,
|
•
|
a $23.4 million increase in employee compensation,
|
•
|
a $20.0 million increase in cash tax payments,
|
•
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a $5.3 million increase in vendor and other payments, and
|
•
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a $3.9 million increase in cash interest paid.
|
•
|
a
$2.9 million
increase in proceeds from sale of other investments.
|
•
|
a
$21.1 million
increase in capital expenditures, primarily due to improvements at existing funeral homes, and
|
•
|
a
$3.3 million
increase in cash spent on acquisitions; partially offset by
|
•
|
a
$1.8 million
decrease in payments for Company-owned life insurance policies, net of proceeds
|
•
|
a
$0.7 million
increase in proceeds from divestitures and asset sales and other.
|
•
|
a
$78.0 million
increase in purchase of Company common stock,
|
•
|
a
$15.1 million
increase in payments of dividends,
|
•
|
a
$74.1 million
decrease in net debt issuance proceeds, net of payments,
|
•
|
a
$9.1 million
decrease in proceeds from exercises of stock options, and
|
•
|
a
$21.1 million
change in bank overdrafts and acquisition related financing; partially offset by
|
•
|
a
$4.6 million
decrease in purchases of noncontrolling interests as we acquired the remaining 11% of the common stock of our consolidated subsidiary, Wilson Financial Group, Inc in 2017.
|
•
|
a
$47.4 million
increase in proceeds from the issuance of debt, net of payments,
|
•
|
a
$15.9 million
increase in proceeds from exercises of stock options,
|
•
|
a
$28.3 million
decrease in purchase of Company common stock, and
|
•
|
a
$7.1 million
decrease in bank overdrafts and other; partially offset by
|
•
|
a
$12.7 million
decrease in excess tax benefits from share-based awards,
|
•
|
a
$10.3 million
increase in payments of dividends, and
|
•
|
a
$2.6 million
increase in purchases of noncontrolling interests to acquire the remaining 11% of the common stock of our consolidated subsidiary, Wilson Financial Group, Inc.
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Payments Due by Period
|
||||||||||||||||||
Contractual Obligations
|
|
2019
|
|
2020-2021
|
|
2022-2023
|
|
Thereafter
|
|
Total
|
||||||||||
|
|
|
|
(In millions)
|
|
|
||||||||||||||
Debt maturities (including capital leases)
(1) (2) (3)
|
|
$
|
75.0
|
|
|
$
|
519.7
|
|
|
$
|
1,394.1
|
|
|
$
|
1,638.5
|
|
|
$
|
3,627.3
|
|
Interest obligation on long-term debt
(4)
|
|
179.7
|
|
|
343.8
|
|
|
217.1
|
|
|
172.9
|
|
|
913.5
|
|
|||||
Operating lease agreements
(5)
|
|
11.3
|
|
|
17.8
|
|
|
12.7
|
|
|
37.8
|
|
|
79.6
|
|
|||||
Employment and management, consulting, and non-competition agreements
(6)
|
|
8.1
|
|
|
10.4
|
|
|
5.4
|
|
|
6.1
|
|
|
30.0
|
|
|||||
Benefit cost obligation
(7)
|
|
3.2
|
|
|
5.1
|
|
|
4.4
|
|
|
8.6
|
|
|
21.3
|
|
|||||
Firm purchase agreement
(8)
|
|
6.7
|
|
|
8.2
|
|
|
—
|
|
|
—
|
|
|
14.9
|
|
|||||
Total contractual obligations
|
|
$
|
284.0
|
|
|
$
|
905.0
|
|
|
$
|
1,633.7
|
|
|
$
|
1,863.9
|
|
|
$
|
4,686.6
|
|
(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 6 in Part II, Item 8. Financial Statements and Supplementary Data, for additional details related to our long-term debt.
|
(2)
|
Excludes non-cash net premiums and original issuance discounts recorded on the debt. The unamortized balance of the net premiums and original issuance discounts at
December 31, 2018
is $
6.6 million
.
|
(3)
|
Excludes non-cash debt issuance costs on the debt. The unamortized balance of debt issuance costs at
December 31, 2018
is $
31.8 million
.
|
(4)
|
Approximately
66%
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 6 in Part II, Item 8. Financial Statements and Supplementary Data for additional information related to our future interest obligations.
|
(5)
|
Our operating leases primarily relate to real estate and office and maintenance equipment for funeral service and cemetery locations. See Note 8 in Part II, Item 8. Financial Statements and Supplementary Data for additional details related to our leases.
|
(6)
|
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 8 in Part II, Item 8. Financial Statements and Supplementary Data for additional details related to these agreements.
|
(7)
|
See Note 11 in Part II, Item 8. Financial Statements and Supplementary Data for discussion of our pension plans.
|
(8)
|
We have entered into a purchase commitment for certain merchandise for resale. The agreement is through 2021 and includes annual minimum volume purchase commitments.
|
|
|
Expiration by Period
|
||||||||||||||||||
Commercial and Contingent Obligations
|
|
2019
|
|
2020-2021
|
|
2022-2023
|
|
Thereafter
|
|
Total
|
||||||||||
|
|
|
|
(In millions)
|
|
|
||||||||||||||
Surety obligations
(1)
|
|
$
|
161.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
161.9
|
|
Long-term obligations related to uncertain tax positions
(2)
|
|
1.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.9
|
|
|||||
Letters of credit
(3)
|
|
32.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32.9
|
|
|||||
Total commercial and contingent obligations
|
|
$
|
196.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
196.7
|
|
(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 $
1.9 million
as of
December 31, 2018
. See Note 5 in Part II, Item 8. Financial Statements and Supplementary Data for additional information related to our uncertain tax positions.
|
(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
|
|
Years Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
Preneed funeral
|
$
|
106.9
|
|
|
$
|
109.8
|
|
Preneed cemetery:
|
|
|
|
|
|
||
Merchandise and services
|
137.9
|
|
|
132.2
|
|
||
Pre-construction
|
15.4
|
|
|
11.9
|
|
||
Bonds supporting preneed funeral and cemetery obligations
|
260.2
|
|
|
253.9
|
|
||
Bonds supporting preneed business permits
|
4.2
|
|
|
4.5
|
|
||
Other bonds
|
18.9
|
|
|
18.0
|
|
||
Total surety bonds outstanding
|
$
|
283.3
|
|
|
$
|
276.4
|
|
|
Years Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(Dollars in millions)
|
||||||
Preneed insurance-funded:
|
|
|
|
|
|
||
Sales production
(1)
|
$
|
538.9
|
|
|
$
|
510.0
|
|
Sales production (number of contracts)
(1)
|
92,858
|
|
|
84,962
|
|
||
General agency revenue
|
$
|
134.1
|
|
|
$
|
121.0
|
|
Maturities
|
$
|
342.5
|
|
|
$
|
335.3
|
|
Maturities (number of contracts)
|
58,232
|
|
|
56,535
|
|
(1)
|
Amounts are not included in our Consolidated Balance Sheet
|
|
Years Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(Dollars in millions)
|
||||||
Funeral:
|
|
|
|
|
|
||
Preneed trust-funded (including bonded):
|
|
|
|
|
|
||
Sales production
|
$
|
354.6
|
|
|
$
|
319.3
|
|
Sales production (number of contracts)
|
95,768
|
|
|
94,603
|
|
||
Maturities
|
$
|
288.4
|
|
|
$
|
265.8
|
|
Maturities (number of contracts)
|
71,617
|
|
|
68,683
|
|
||
Cemetery:
|
|
|
|
|
|
||
Sales production:
|
|
|
|
|
|
||
Preneed
|
$
|
892.0
|
|
|
$
|
846.0
|
|
Atneed
|
322.0
|
|
|
316.6
|
|
||
Total sales production
|
$
|
1,214.0
|
|
|
$
|
1,162.6
|
|
Sales production deferred to backlog:
|
|
|
|
|
|
||
Preneed
|
$
|
421.1
|
|
|
$
|
380.8
|
|
Atneed
|
238.1
|
|
|
230.8
|
|
||
Total sales production deferred to backlog
|
$
|
659.2
|
|
|
$
|
611.6
|
|
Revenue recognized from backlog:
|
|
|
|
|
|
||
Preneed
|
$
|
338.8
|
|
|
$
|
305.1
|
|
Atneed
|
236.7
|
|
|
226.7
|
|
||
Total revenue recognized from backlog
|
$
|
575.5
|
|
|
$
|
531.8
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
|
Fair Value
|
|
Cost
|
|
Fair Value
|
|
Cost
|
||||||||
|
(In billions)
|
||||||||||||||
Deferred revenue, net
|
$
|
1.42
|
|
|
$
|
1.42
|
|
|
$
|
1.79
|
|
|
$
|
1.79
|
|
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts
(1)
|
0.57
|
|
|
0.57
|
|
|
—
|
|
|
—
|
|
||||
Deferred receipts held in trust
|
3.37
|
|
|
3.47
|
|
|
3.48
|
|
|
3.18
|
|
||||
Allowance for cancellation on trust investments
|
(0.24
|
)
|
|
(0.25
|
)
|
|
(0.27
|
)
|
|
(0.25
|
)
|
||||
Backlog of trust-funded deferred revenue, net of estimated allowance for cancellation
|
5.12
|
|
|
5.21
|
|
|
5.00
|
|
|
4.72
|
|
||||
Backlog of insurance-funded revenue
(1)
|
5.97
|
|
|
5.97
|
|
|
5.66
|
|
|
5.66
|
|
||||
Total backlog of deferred revenue
|
$
|
11.09
|
|
|
$
|
11.18
|
|
|
$
|
10.66
|
|
|
$
|
10.38
|
|
|
|
|
|
|
|
|
|
||||||||
Preneed receivables, net and trust investments
|
$
|
4.27
|
|
|
$
|
4.37
|
|
|
$
|
4.78
|
|
|
$
|
4.48
|
|
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts
(1)
|
0.57
|
|
|
0.57
|
|
|
—
|
|
|
—
|
|
||||
Allowance for cancellation on trust investments
|
(0.24
|
)
|
|
(0.25
|
)
|
|
(0.27
|
)
|
|
(0.25
|
)
|
||||
Assets associated with backlog of trust-funded deferred revenue, net of estimated allowance for cancellation
|
4.60
|
|
|
4.69
|
|
|
4.51
|
|
|
4.23
|
|
||||
Insurance policies associated with insurance-funded deferred revenue
(2)
|
5.97
|
|
|
5.97
|
|
|
5.66
|
|
|
5.66
|
|
||||
Total assets associated with backlog of preneed revenue
|
$
|
10.57
|
|
|
$
|
10.66
|
|
|
$
|
10.17
|
|
|
$
|
9.89
|
|
(1)
|
Prior to adoption of
"Revenue from Contracts with Customers"
on January 1, 2018, amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts were included in
Preneed receivables, net and trust investments.
|
(2)
|
Amounts are not included in our Consolidated Balance Sheet.
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Pre-tax gains (losses) from divestitures and impairment, net
|
$
|
15.9
|
|
|
$
|
7.0
|
|
|
$
|
(26.8
|
)
|
Pre-tax losses from the early extinguishment of debt, net
|
$
|
(10.1
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(22.5
|
)
|
Pre-tax acquisition, integration, and system transition costs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(17.5
|
)
|
Pre-tax pension termination settlement
|
$
|
—
|
|
|
$
|
(12.8
|
)
|
|
$
|
(5.6
|
)
|
Pre-tax legal settlement, net of insurance recoveries
|
$
|
—
|
|
|
$
|
(11.5
|
)
|
|
$
|
—
|
|
Tax (provision) benefit from above items
|
$
|
(1.6
|
)
|
|
$
|
5.7
|
|
|
$
|
17.2
|
|
Change in uncertain tax reserves and other
(1)
|
$
|
107.8
|
|
|
$
|
260.1
|
|
|
$
|
(20.9
|
)
|
(1)
|
See Note 5 in Part II, Item 8. Financial Statements and Supplementary Data, for additional information related to change in uncertain tax reserves and other.
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
(3)
|
|
2016
(3)
|
||||||
|
(Dollars in millions, except average revenue per service)
|
||||||||||
Consolidated funeral revenue
|
$
|
1,898.0
|
|
|
$
|
1,868.2
|
|
|
$
|
1,869.1
|
|
Less: revenue associated with acquisitions/new construction
|
39.7
|
|
|
14.7
|
|
|
—
|
|
|||
Less: revenue associated with divestitures
|
1.4
|
|
|
12.8
|
|
|
52.3
|
|
|||
Comparable
(1)
funeral revenue
|
1,856.9
|
|
|
1,840.7
|
|
|
1,816.8
|
|
|||
Less: comparable recognized preneed revenue
|
123.7
|
|
|
117.3
|
|
|
110.9
|
|
|||
Less: comparable general agency and other revenue
|
123.0
|
|
|
117.9
|
|
|
126.9
|
|
|||
Adjusted comparable funeral revenue
|
$
|
1,610.2
|
|
|
$
|
1,605.5
|
|
|
$
|
1,579.0
|
|
Comparable services performed
|
305,245
|
|
|
303,825
|
|
|
299,153
|
|
|||
Comparable average revenue per service
(2)
|
$
|
5,275
|
|
|
$
|
5,284
|
|
|
$
|
5,278
|
|
|
|
|
|
|
|
||||||
Consolidated funeral operating profit
|
$
|
369.6
|
|
|
$
|
371.9
|
|
|
$
|
361.0
|
|
Less: operating profit associated with acquisitions/new construction
|
2.8
|
|
|
2.7
|
|
|
—
|
|
|||
Less: operating (loss) profit associated with divestitures
|
(2.5
|
)
|
|
(6.4
|
)
|
|
0.7
|
|
|||
Comparable
(1)
funeral operating profit
|
$
|
369.3
|
|
|
$
|
375.6
|
|
|
$
|
360.3
|
|
(1)
|
We define comparable (or same store) operations as those funeral locations owned by us for the entire period beginning
January 1, 2017
and ending
December 31, 2018
.
|
(2)
|
We calculate comparable average revenue per service by dividing comparable funeral revenue, excluding general agency revenue, recognized preneed revenue, and other revenue to avoid distorting our average of normal funeral services revenue, by the comparable number of services performed during the period. Recognized preneed revenue is preneed sales of merchandise that are delivered at the time of sale, including memorial merchandise and travel protection, net, and excluded from our calculation of comparable average revenue per service because the associated service has not yet been performed.
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
(2)
|
|
2016
(2)
|
||||||
|
(In millions)
|
||||||||||
Consolidated cemetery revenue
|
$
|
1,292.2
|
|
|
$
|
1,226.9
|
|
|
$
|
1,162.0
|
|
Less: revenue associated with acquisitions
|
18.0
|
|
|
4.6
|
|
|
—
|
|
|||
Less: revenue associated with divestitures
|
0.6
|
|
|
1.6
|
|
|
2.9
|
|
|||
Comparable
(1)
cemetery revenue
|
$
|
1,273.6
|
|
|
$
|
1,220.7
|
|
|
$
|
1,159.1
|
|
|
|
|
|
|
|
||||||
Consolidated cemetery operating profit
|
$
|
390.7
|
|
|
$
|
350.9
|
|
|
$
|
315.8
|
|
Less: operating profit associated with acquisitions
|
3.9
|
|
|
1.1
|
|
|
—
|
|
|||
Less: operating profit (loss) associated with divestitures
|
0.2
|
|
|
(0.8
|
)
|
|
(0.4
|
)
|
|||
Comparable
(1)
cemetery operating profit
|
$
|
386.6
|
|
|
$
|
350.6
|
|
|
$
|
316.2
|
|
(1)
|
We define comparable (or same store) operations as those cemetery locations owned by us for the entire period beginning
January 1, 2017
and ending
December 31, 2018
.
|
•
|
purchase the merchandise from vendors,
|
•
|
personalize such merchandise in accordance with the customer's specific written instructions,
|
•
|
either store the merchandise at a third-party bonded storage facility or install the merchandise, based on the customer's instructions, and
|
•
|
transfer title to the customer.
|
•
|
Where quoted prices are available in an active market, securities held by the trusts are classified as Level 1 investments.
|
•
|
Where quoted market prices are not available for the specific security, fair values are estimated by using either quoted prices of securities with similar characteristics or an income approach fair value model with observable inputs that include a combination of interest rates, yield curves, credit risks, prepayment speeds, ratings, and tax-exempt status. These securities are classified as Level 2 investments.
|
•
|
The valuation of other investments requires management judgment due to the absence of quoted market prices, inherent lack of liquidity, and the long-term nature of such assets. These securities are classified as Level 3 investments.
|
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, 2018, 2017, and 2016
|
|
Consolidated Statement of Comprehensive Income for the years ended December 31, 2018, 2017, and 2016
|
|
Consolidated Balance Sheet as of December 31, 2018 and 2017
|
|
Consolidated Statement of Cash Flows for the years ended December 31, 2018, 2017, and 2016
|
|
Consolidated Statement of Equity for the years ended December 31, 2018, 2017, and 2016
|
|
Notes to Consolidated Financial Statements
|
|
1. Nature of Operations
|
|
2. Summary of Significant Accounting Policies
|
|
3. Preneed Activities
|
|
4. Goodwill and Intangible Assets
|
|
5. Income Taxes
|
|
6. Debt
|
|
7. Credit Risk and Fair Value of Financial Instruments
|
|
8. Commitments and Contingencies
|
|
9. Equity
|
|
10. Share-Based Compensation
|
|
11. Retirement Plans
|
|
12. Segment Reporting
|
|
13. Supplementary Information
|
|
14. Earnings Per Share
|
|
15. Acquisitions and Divestiture-Related Activities
|
|
16. Quarterly Financial Data (Unaudited)
|
|
Financial Statement Schedule:
|
|
II — Valuation and Qualifying Accounts for the years ended December 31, 2018, 2017, and 2016
|
SERVICE CORPORATION INTERNATIONAL
CONSOLIDATED STATEMENT OF OPERATIONS
|
|||||||||||
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands, except per share amounts)
|
||||||||||
Revenue
|
|
|
|
|
|
||||||
Property and merchandise revenue
|
$
|
1,584,242
|
|
|
$
|
1,525,747
|
|
|
$
|
1,456,596
|
|
Service revenue
|
1,374,380
|
|
|
1,356,665
|
|
|
1,345,528
|
|
|||
Other revenue
|
231,552
|
|
|
212,619
|
|
|
229,013
|
|
|||
Total revenue
|
3,190,174
|
|
|
3,095,031
|
|
|
3,031,137
|
|
|||
Costs and expenses
|
|
|
|
|
|
||||||
Cost of property and merchandise
|
(811,574
|
)
|
|
(794,725
|
)
|
|
(776,411
|
)
|
|||
Cost of service
|
(752,488
|
)
|
|
(729,204
|
)
|
|
(733,690
|
)
|
|||
Overhead and other expenses
|
(865,790
|
)
|
|
(848,323
|
)
|
|
(844,186
|
)
|
|||
Total costs and expenses
|
(2,429,852
|
)
|
|
(2,372,252
|
)
|
|
(2,354,287
|
)
|
|||
Operating profit
|
760,322
|
|
|
722,779
|
|
|
676,850
|
|
|||
General and administrative expenses
|
(145,499
|
)
|
|
(153,067
|
)
|
|
(136,708
|
)
|
|||
Gains (losses) on divestitures and impairment charges, net
|
15,933
|
|
|
7,015
|
|
|
(26,819
|
)
|
|||
Hurricane expenses, net
|
(97
|
)
|
|
(5,584
|
)
|
|
—
|
|
|||
Operating income
|
630,659
|
|
|
571,143
|
|
|
513,323
|
|
|||
Interest expense
|
(181,556
|
)
|
|
(169,125
|
)
|
|
(162,093
|
)
|
|||
Losses on early extinguishment of debt, net
|
(10,131
|
)
|
|
(274
|
)
|
|
(22,503
|
)
|
|||
Other income (expense), net
|
2,760
|
|
|
(1,486
|
)
|
|
(2,069
|
)
|
|||
Income before income taxes
|
441,732
|
|
|
400,258
|
|
|
326,658
|
|
|||
Benefit from (provision for) income taxes
|
5,826
|
|
|
146,589
|
|
|
(149,353
|
)
|
|||
Net income
|
447,558
|
|
|
546,847
|
|
|
177,305
|
|
|||
Net income attributable to noncontrolling interests
|
(350
|
)
|
|
(184
|
)
|
|
(267
|
)
|
|||
Net income attributable to common stockholders
|
$
|
447,208
|
|
|
$
|
546,663
|
|
|
$
|
177,038
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|||
Net income attributable to common stockholders
|
$
|
2.45
|
|
|
$
|
2.91
|
|
|
$
|
0.92
|
|
Basic weighted average number of shares
|
182,447
|
|
|
187,630
|
|
|
193,086
|
|
|||
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|||
Net income attributable to common stockholders
|
$
|
2.39
|
|
|
$
|
2.84
|
|
|
$
|
0.90
|
|
Diluted weighted average number of shares
|
186,972
|
|
|
192,246
|
|
|
196,042
|
|
|
|
|
|
|
|
||||||
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands)
|
||||||||||
Net income
|
$
|
447,558
|
|
|
$
|
546,847
|
|
|
$
|
177,305
|
|
Other comprehensive income:
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
(28,478
|
)
|
|
25,462
|
|
|
10,331
|
|
|||
Total comprehensive income
|
419,080
|
|
|
572,309
|
|
|
187,636
|
|
|||
Total comprehensive income attributable to noncontrolling interests
|
(191
|
)
|
|
(195
|
)
|
|
(270
|
)
|
|||
Total comprehensive income attributable to common stockholders
|
$
|
418,889
|
|
|
$
|
572,114
|
|
|
$
|
187,366
|
|
SERVICE CORPORATION INTERNATIONAL
CONSOLIDATED BALANCE SHEET
|
|||||||
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands, except share amounts)
|
||||||
ASSETS
|
|||||||
Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
198,850
|
|
|
$
|
330,039
|
|
Receivables, net
|
73,825
|
|
|
90,304
|
|
||
Inventories
|
24,950
|
|
|
25,378
|
|
||
Other
|
33,607
|
|
|
35,575
|
|
||
Total current assets
|
331,232
|
|
|
481,296
|
|
||
Preneed receivables, net and trust investments
|
4,271,392
|
|
|
4,778,842
|
|
||
Cemetery property
|
1,837,464
|
|
|
1,791,989
|
|
||
Property and equipment, net
|
1,977,364
|
|
|
1,873,044
|
|
||
Goodwill
|
1,863,842
|
|
|
1,805,981
|
|
||
Deferred charges and other assets
|
934,151
|
|
|
601,184
|
|
||
Cemetery perpetual care trust investments
|
1,477,798
|
|
|
1,532,167
|
|
||
Total assets
|
$
|
12,693,243
|
|
|
$
|
12,864,503
|
|
|
|
|
|
||||
LIABILITIES & EQUITY
|
|||||||
Current liabilities:
|
|
|
|
|
|
||
Accounts payable and accrued liabilities
|
$
|
479,768
|
|
|
$
|
489,172
|
|
Current maturities of long-term debt
|
69,896
|
|
|
337,337
|
|
||
Income taxes payable
|
5,936
|
|
|
2,470
|
|
||
Total current liabilities
|
555,600
|
|
|
828,979
|
|
||
Long-term debt
|
3,532,182
|
|
|
3,135,316
|
|
||
Deferred revenue, net
|
1,418,814
|
|
|
1,789,776
|
|
||
Deferred tax liability
|
404,627
|
|
|
283,765
|
|
||
Other liabilities
|
297,302
|
|
|
410,982
|
|
||
Deferred receipts held in trust
|
3,371,738
|
|
|
3,475,430
|
|
||
Care trusts’ corpus
|
1,471,165
|
|
|
1,530,818
|
|
||
Commitments and contingencies (Note 8)
|
|
|
|
|
|
||
Equity:
|
|
|
|
||||
Common stock, $1 per share par value, 500,000,000 shares authorized, 184,720,582 and 191,935,647 shares issued, respectively, and 181,470,582 and 186,614,747 shares outstanding, respectively
|
181,471
|
|
|
186,615
|
|
||
Capital in excess of par value
|
972,710
|
|
|
970,468
|
|
||
Retained earnings
|
474,327
|
|
|
210,364
|
|
||
Accumulated other comprehensive income
|
13,395
|
|
|
41,943
|
|
||
Total common stockholders’ equity
|
1,641,903
|
|
|
1,409,390
|
|
||
Noncontrolling interests
|
(88
|
)
|
|
47
|
|
||
Total equity
|
1,641,815
|
|
|
1,409,437
|
|
||
Total liabilities and equity
|
$
|
12,693,243
|
|
|
$
|
12,864,503
|
|
SERVICE CORPORATION INTERNATIONAL
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|||||||||||
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
(In thousands)
|
|
|
|
|||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
447,558
|
|
|
$
|
546,847
|
|
|
$
|
177,305
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|||
Losses on early extinguishment of debt, net
|
10,131
|
|
|
274
|
|
|
22,503
|
|
|||
Depreciation and amortization
|
153,650
|
|
|
153,141
|
|
|
147,233
|
|
|||
Amortization of intangibles
|
26,195
|
|
|
27,650
|
|
|
30,956
|
|
|||
Amortization of cemetery property
|
68,640
|
|
|
68,102
|
|
|
66,745
|
|
|||
Amortization of loan costs
|
6,059
|
|
|
5,859
|
|
|
5,826
|
|
|||
Provision for doubtful accounts
|
8,372
|
|
|
9,980
|
|
|
10,776
|
|
|||
(Benefit from) provision for deferred income taxes
|
(41,479
|
)
|
|
(317,838
|
)
|
|
7,490
|
|
|||
(Gains) losses on divestitures and impairment charges, net
|
(15,933
|
)
|
|
(7,015
|
)
|
|
26,819
|
|
|||
Gain on sale of investments
|
(2,636
|
)
|
|
—
|
|
|
—
|
|
|||
Share-based compensation
|
15,626
|
|
|
14,788
|
|
|
14,056
|
|
|||
Excess tax benefits from share-based awards
|
—
|
|
|
—
|
|
|
(12,685
|
)
|
|||
Change in assets and liabilities, net of effects from acquisitions and dispositions:
|
|
|
|
|
|
|
|
|
|||
Decrease (increase) in receivables
|
8,052
|
|
|
(9,740
|
)
|
|
(14,198
|
)
|
|||
(Increase) decrease in other assets
|
(4,814
|
)
|
|
(14,353
|
)
|
|
22,771
|
|
|||
(Decrease) increase in payables and other liabilities
|
(16,699
|
)
|
|
81,763
|
|
|
47,888
|
|
|||
Effect of preneed sales production and maturities:
|
|
|
|
|
|
|
|
|
|||
Increase in preneed receivables, net and trust investments
|
(55,607
|
)
|
|
(63,994
|
)
|
|
(73,394
|
)
|
|||
Increase in deferred revenue, net
|
28,005
|
|
|
31,182
|
|
|
34,775
|
|
|||
Decrease in deferred receipts held in trust
|
(19,290
|
)
|
|
(23,274
|
)
|
|
(25,831
|
)
|
|||
Net cash provided by operating activities
|
615,830
|
|
|
503,372
|
|
|
489,035
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|||
Capital expenditures
|
(235,545
|
)
|
|
(214,501
|
)
|
|
(193,446
|
)
|
|||
Acquisitions, net of cash acquired
|
(194,824
|
)
|
|
(76,171
|
)
|
|
(72,859
|
)
|
|||
Proceeds from divestitures and sales of property and equipment
|
37,309
|
|
|
52,381
|
|
|
51,813
|
|
|||
Proceeds from sale of investments
|
2,900
|
|
|
—
|
|
|
—
|
|
|||
Payments for Company-owned life insurance policies
|
(14,760
|
)
|
|
(7,360
|
)
|
|
(9,050
|
)
|
|||
Proceeds from Company-owned life insurance policies
|
4,824
|
|
|
2,592
|
|
|
2,517
|
|
|||
Purchase of land and other
|
(14,525
|
)
|
|
175
|
|
|
—
|
|
|||
Net cash used in investing activities
|
(414,621
|
)
|
|
(242,884
|
)
|
|
(221,025
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|||
Proceeds from issuance of long-term debt
|
396,349
|
|
|
1,787,500
|
|
|
1,060,000
|
|
|||
Debt issuance costs
|
—
|
|
|
(12,939
|
)
|
|
(5,232
|
)
|
|||
Scheduled payments of debt
|
(34,134
|
)
|
|
(468,973
|
)
|
|
(36,414
|
)
|
|||
Early payments of debt
|
(259,590
|
)
|
|
(1,117,512
|
)
|
|
(895,634
|
)
|
|||
Principal payments on capital leases
|
(39,686
|
)
|
|
(51,106
|
)
|
|
(33,119
|
)
|
|||
Proceeds from exercise of stock options
|
24,517
|
|
|
33,611
|
|
|
17,662
|
|
|||
Excess tax benefits from share-based awards
|
—
|
|
|
—
|
|
|
12,685
|
|
|||
Purchase of Company common stock
|
(277,611
|
)
|
|
(199,637
|
)
|
|
(227,928
|
)
|
|||
Payments of dividends
|
(123,849
|
)
|
|
(108,750
|
)
|
|
(98,418
|
)
|
|||
Purchase of noncontrolling interest
|
—
|
|
|
(4,580
|
)
|
|
(1,961
|
)
|
|||
Bank overdrafts and other
|
(15,177
|
)
|
|
5,959
|
|
|
(1,095
|
)
|
|||
Net cash used in financing activities
|
(329,181
|
)
|
|
(136,427
|
)
|
|
(209,454
|
)
|
|||
Effect of foreign currency
|
(5,045
|
)
|
|
5,034
|
|
|
1,857
|
|
|||
Net (decrease) increase in cash, cash equivalents, and restricted cash
|
(133,017
|
)
|
|
129,095
|
|
|
60,413
|
|
|||
Cash, cash equivalents, and restricted cash at beginning of period
|
340,601
|
|
|
211,506
|
|
|
151,093
|
|
|||
Cash, cash equivalents, and restricted cash at end of period
|
$
|
207,584
|
|
|
$
|
340,601
|
|
|
$
|
211,506
|
|
|
Common
Stock
|
|
Treasury
Stock,
Par Value
|
|
Capital in
Excess of
Par Value
|
|
(Accumulated
Deficit)
Retained Earnings
|
|
Accumulated
Other
Comprehensive
Income
|
|
Noncontrolling
Interest
|
|
Total
|
||||||||||||||
|
(In thousands, except per share amounts)
|
||||||||||||||||||||||||||
Balance at December 31, 2015
|
$
|
200,859
|
|
|
$
|
(5,086
|
)
|
|
$
|
1,092,106
|
|
|
$
|
(109,351
|
)
|
|
$
|
6,164
|
|
|
$
|
4,709
|
|
|
$
|
1,189,401
|
|
Comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
177,038
|
|
|
10,328
|
|
|
270
|
|
|
187,636
|
|
|||||||
Dividends declared on common stock ($.51 per share)
|
—
|
|
|
—
|
|
|
(98,418
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(98,418
|
)
|
|||||||
Stock option exercises
|
2,108
|
|
|
—
|
|
|
15,554
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,662
|
|
|||||||
Restricted stock awards, net of forfeitures
|
241
|
|
|
(1
|
)
|
|
(240
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Employee share-based compensation earned
|
—
|
|
|
—
|
|
|
14,056
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,056
|
|
|||||||
Purchase of Company common stock
|
—
|
|
|
(8,812
|
)
|
|
(48,042
|
)
|
|
(171,074
|
)
|
|
—
|
|
|
—
|
|
|
(227,928
|
)
|
|||||||
Tax benefits of share-based awards
|
—
|
|
|
—
|
|
|
12,685
|
|
|
—
|
|
|
—
|
|
|
|
|
|
12,685
|
|
|||||||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
364
|
|
|
—
|
|
|
—
|
|
|
(2,325
|
)
|
|
(1,961
|
)
|
|||||||
Noncontrolling interest payments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(120
|
)
|
|
(120
|
)
|
|||||||
Retirement of treasury shares
|
(7,901
|
)
|
|
7,901
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other
|
96
|
|
|
—
|
|
|
2,138
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,234
|
|
|||||||
Balance at December 31, 2016
|
$
|
195,403
|
|
|
$
|
(5,998
|
)
|
|
$
|
990,203
|
|
|
$
|
(103,387
|
)
|
|
$
|
16,492
|
|
|
$
|
2,534
|
|
|
$
|
1,095,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
546,663
|
|
|
25,451
|
|
|
195
|
|
|
572,309
|
|
|||||||
Dividends declared on common stock ($.58 per share)
|
—
|
|
|
—
|
|
|
(37,011
|
)
|
|
(71,739
|
)
|
|
—
|
|
|
—
|
|
|
(108,750
|
)
|
|||||||
Stock option exercises
|
2,759
|
|
|
—
|
|
|
30,852
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,611
|
|
|||||||
Restricted stock awards, net of forfeitures
|
209
|
|
|
(2
|
)
|
|
(207
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Employee share-based compensation earned
|
—
|
|
|
—
|
|
|
14,788
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,788
|
|
|||||||
Purchase of Company common stock
|
—
|
|
|
(6,211
|
)
|
|
(32,253
|
)
|
|
(161,173
|
)
|
|
—
|
|
|
—
|
|
|
(199,637
|
)
|
|||||||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
(2,258
|
)
|
|
—
|
|
|
—
|
|
|
(2,322
|
)
|
|
(4,580
|
)
|
|||||||
Noncontrolling interest payments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(360
|
)
|
|
(360
|
)
|
|||||||
Retirement of treasury shares
|
(6,890
|
)
|
|
6,890
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other
|
455
|
|
|
—
|
|
|
6,354
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,809
|
|
|||||||
Balance at December 31, 2017
|
$
|
191,936
|
|
|
$
|
(5,321
|
)
|
|
$
|
970,468
|
|
|
$
|
210,364
|
|
|
$
|
41,943
|
|
|
$
|
47
|
|
|
$
|
1,409,437
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cumulative effect of accounting changes
|
—
|
|
|
—
|
|
|
—
|
|
|
172,461
|
|
|
(229
|
)
|
|
—
|
|
|
172,232
|
|
|||||||
Comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
447,208
|
|
|
(28,319
|
)
|
|
191
|
|
|
419,080
|
|
|||||||
Dividends declared on common stock ($.68 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(123,849
|
)
|
|
—
|
|
|
—
|
|
|
(123,849
|
)
|
|||||||
Stock option exercises
|
1,802
|
|
|
—
|
|
|
22,715
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,517
|
|
|||||||
Restricted stock awards, net of forfeitures
|
178
|
|
|
—
|
|
|
(178
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Employee share-based compensation earned
|
—
|
|
|
—
|
|
|
15,626
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,626
|
|
|||||||
Purchase of Company common stock
|
—
|
|
|
(7,348
|
)
|
|
(38,404
|
)
|
|
(231,859
|
)
|
|
—
|
|
|
—
|
|
|
(277,611
|
)
|
|||||||
Noncontrolling interest payments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(326
|
)
|
|
(326
|
)
|
|||||||
Retirement of treasury shares
|
(9,419
|
)
|
|
9,419
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other
|
224
|
|
|
—
|
|
|
2,483
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2,709
|
|
|||||||
Balance at December 31, 2018
|
$
|
184,721
|
|
|
$
|
(3,250
|
)
|
|
$
|
972,710
|
|
|
$
|
474,327
|
|
|
$
|
13,395
|
|
|
$
|
(88
|
)
|
|
$
|
1,641,815
|
|
1.
|
Nature of Operations
|
2.
|
Summary of Significant Accounting Policies
|
|
Years Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
Cash and cash equivalents
|
$
|
198,850
|
|
|
$
|
330,039
|
|
Restricted cash
(1)
:
|
|
|
|
||||
Included in
Other current assets
|
7,007
|
|
|
8,625
|
|
||
Included in
Deferred charges and other assets
|
1,727
|
|
|
1,937
|
|
||
Total restricted cash
|
8,734
|
|
|
10,562
|
|
||
Total cash, cash equivalents, and restricted cash
|
$
|
207,584
|
|
|
$
|
340,601
|
|
(1)
|
Restricted cash in both periods primarily consists of proceeds from divestitures deposited into escrow accounts under IRS code section 1031 and collateralized obligations under certain insurance policies.
|
•
|
Where quoted prices are available in an active market, securities held by the trusts are classified as Level 1 investments.
|
•
|
Where quoted market prices are not available for the specific security, fair values are estimated by using either quoted prices of securities with similar characteristics or an income approach fair value model with observable inputs that include a combination of interest rates, yield curves, credit risks, prepayment speeds, ratings, and tax-exempt status. These securities are classified as Level 2 investments.
|
•
|
The valuation of other investments requires management judgment due to the absence of quoted market prices, inherent lack of liquidity, and the long-term nature of such assets. These securities are classified as Level 3 investments.
|
•
|
purchase the merchandise from vendors,
|
•
|
personalize such merchandise in accordance with the customer's specific written instructions,
|
•
|
either store the merchandise at a third-party bonded storage facility or install the merchandise, based on the customer's instructions, and
|
•
|
transfer title to the customer.
|
|
Year Ended December 31, 2018
|
||||||||||
|
As Reported
|
|
Effect of New Guidance
|
|
Without New Guidance
|
||||||
|
(In thousands, except per share amounts)
|
||||||||||
Revenue
|
$
|
3,190,174
|
|
|
$
|
1,142
|
|
|
$
|
3,191,316
|
|
Costs and expenses
|
(2,429,852
|
)
|
|
(15,491
|
)
|
|
(2,445,343
|
)
|
|||
Operating profit (loss)
|
760,322
|
|
|
(14,349
|
)
|
|
745,973
|
|
|||
General and administrative expenses
|
(145,499
|
)
|
|
—
|
|
|
(145,499
|
)
|
|||
Gain on divestitures and impairment charges, net
|
15,933
|
|
|
—
|
|
|
15,933
|
|
|||
Hurricane recoveries, net
|
(97
|
)
|
|
—
|
|
|
(97
|
)
|
|||
Operating income (loss)
|
630,659
|
|
|
(14,349
|
)
|
|
616,310
|
|
|||
Interest expense
|
(181,556
|
)
|
|
—
|
|
|
(181,556
|
)
|
|||
Loss on early extinguishment of debt, net
|
(10,131
|
)
|
|
—
|
|
|
(10,131
|
)
|
|||
Other income, net
|
2,760
|
|
|
—
|
|
|
2,760
|
|
|||
Income (loss) before income taxes
|
441,732
|
|
|
(14,349
|
)
|
|
427,383
|
|
|||
Benefit from income taxes
|
5,826
|
|
|
3,672
|
|
|
9,498
|
|
|||
Net income (loss)
|
447,558
|
|
|
(10,677
|
)
|
|
436,881
|
|
|||
Net income attributable to noncontrolling interests
|
(350
|
)
|
|
—
|
|
|
(350
|
)
|
|||
Net income (loss) attributable to common stockholders
|
$
|
447,208
|
|
|
$
|
(10,677
|
)
|
|
$
|
436,531
|
|
Earnings per share
|
|
|
|
|
|
||||||
Basic
|
$
|
2.45
|
|
|
$
|
(0.06
|
)
|
|
$
|
2.39
|
|
Diluted
|
$
|
2.39
|
|
|
$
|
(0.06
|
)
|
|
$
|
2.33
|
|
|
Year Ended December 31, 2017
|
||||||||||
|
As Previously Reported
|
|
Effect of New Guidance
|
|
As Recast
|
||||||
|
(In thousands)
|
||||||||||
Net cash provided by operating activities
|
$
|
502,340
|
|
|
$
|
1,032
|
|
|
$
|
503,372
|
|
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Capital expenditures
|
(214,501
|
)
|
|
—
|
|
|
(214,501
|
)
|
|||
Acquisitions, net of cash acquired
|
(49,988
|
)
|
|
(26,183
|
)
|
|
(76,171
|
)
|
|||
Proceeds from divestitures and sales of property and equipment
|
28,429
|
|
|
23,952
|
|
|
52,381
|
|
|||
Payments for Company-owned life insurance policies
|
—
|
|
|
(7,360
|
)
|
|
(7,360
|
)
|
|||
Proceeds from Company-owned life insurance policies
|
—
|
|
|
2,592
|
|
|
2,592
|
|
|||
Other
|
175
|
|
|
—
|
|
|
175
|
|
|||
Net cash used in investing activities
|
(235,885
|
)
|
|
(6,999
|
)
|
|
(242,884
|
)
|
|||
Net cash used in financing activities
|
(136,427
|
)
|
|
—
|
|
|
(136,427
|
)
|
|||
Effect of foreign currency on cash, cash equivalents, and restricted cash
|
5,025
|
|
|
9
|
|
|
5,034
|
|
|||
Net increase in cash, cash equivalents, and restricted cash
|
135,053
|
|
|
(5,958
|
)
|
|
129,095
|
|
|||
Cash, cash equivalents, and restricted cash at beginning of period
|
194,986
|
|
|
16,520
|
|
|
211,506
|
|
|||
Cash, cash equivalents, and restricted cash at end of period
|
$
|
330,039
|
|
|
$
|
10,562
|
|
|
$
|
340,601
|
|
|
Year Ended December 31, 2016
|
||||||||||
|
As Previously Reported
|
|
Effect of New Guidance
|
|
As Recast
|
||||||
|
(In thousands)
|
||||||||||
Net cash provided by operating activities
|
$
|
463,595
|
|
|
$
|
25,440
|
|
|
$
|
489,035
|
|
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Capital expenditures
|
(193,446
|
)
|
|
—
|
|
|
(193,446
|
)
|
|||
Acquisitions, net of cash acquired
|
(69,146
|
)
|
|
(3,713
|
)
|
|
(72,859
|
)
|
|||
Proceeds from divestitures and sales of property and equipment
|
41,310
|
|
|
10,503
|
|
|
51,813
|
|
|||
Payments for Company-owned life insurance policies
|
—
|
|
|
(9,050
|
)
|
|
(9,050
|
)
|
|||
Proceeds from Company-owned life insurance policies
|
—
|
|
|
2,517
|
|
|
2,517
|
|
|||
Other
|
5,150
|
|
|
(5,150
|
)
|
|
—
|
|
|||
Net cash used in investing activities
|
(216,132
|
)
|
|
(4,893
|
)
|
|
(221,025
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Proceeds from issuance of long-term debt
|
1,060,000
|
|
|
—
|
|
|
1,060,000
|
|
|||
Debt issuance costs
|
(5,232
|
)
|
|
—
|
|
|
(5,232
|
)
|
|||
Scheduled payments of debt
|
(36,414
|
)
|
|
—
|
|
|
(36,414
|
)
|
|||
Early payments of debt
|
(875,110
|
)
|
|
(20,524
|
)
|
|
(895,634
|
)
|
|||
Principal payments on capital leases
|
(33,119
|
)
|
|
—
|
|
|
(33,119
|
)
|
|||
Proceeds from exercise of stock options
|
17,662
|
|
|
—
|
|
|
17,662
|
|
|||
Excess tax benefits from share-based awards
|
12,685
|
|
|
—
|
|
|
12,685
|
|
|||
Purchase of Company common stock
|
(227,928
|
)
|
|
—
|
|
|
(227,928
|
)
|
|||
Payments of dividends
|
(98,418
|
)
|
|
—
|
|
|
(98,418
|
)
|
|||
Purchase of noncontrolling interest
|
(1,961
|
)
|
|
—
|
|
|
(1,961
|
)
|
|||
Bank overdrafts and other
|
(1,095
|
)
|
|
—
|
|
|
(1,095
|
)
|
|||
Net cash used in financing activities
|
(188,930
|
)
|
|
(20,524
|
)
|
|
(209,454
|
)
|
|||
Effect of foreign currency on cash, cash equivalents, and restricted cash
|
1,854
|
|
|
3
|
|
|
1,857
|
|
|||
Net increase in cash, cash equivalents, and restricted cash
|
60,387
|
|
|
26
|
|
|
60,413
|
|
|||
Cash, cash equivalents, and restricted cash at beginning of period
|
134,599
|
|
|
16,494
|
|
|
151,093
|
|
|||
Cash, cash equivalents, and restricted cash at end of period
|
$
|
194,986
|
|
|
$
|
16,520
|
|
|
$
|
211,506
|
|
1)
|
We will elect a package of practical expedients to not reassess:
|
•
|
whether a contract is or contains a lease (as an accounting policy election, we will not reassess whether arrangements grandfathered under EITF 01-8 are or contain leases),
|
•
|
lease classification, or
|
•
|
initial direct costs.
|
2)
|
We will not elect a practical expedient to use hindsight when determining lease term.
|
3)
|
We will elect the short-term lease recognition exemption.
|
4)
|
The remaining practical expedients do not apply or are not expected to have a material impact.
|
3.
|
Preneed Activities
|
|
Years Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
Preneed funeral receivables
(1)
|
$
|
107,612
|
|
|
$
|
336,925
|
|
Preneed cemetery receivables
(1)
|
883,432
|
|
|
1,118,146
|
|
||
Preneed receivables from customers
|
991,044
|
|
|
1,455,071
|
|
||
Unearned finance charge
|
(44,981
|
)
|
|
(45,515
|
)
|
||
Allowance for cancellation
(1)
|
(48,380
|
)
|
|
(107,749
|
)
|
||
Preneed receivables, net
|
897,683
|
|
|
1,301,807
|
|
||
|
|
|
|
||||
Trust investments, at market
|
4,585,720
|
|
|
4,749,548
|
|
||
Assets associated with business held for sale
|
—
|
|
|
(5,660
|
)
|
||
Insurance-backed fixed income securities and other
|
265,787
|
|
|
265,314
|
|
||
Trust investments
|
4,851,507
|
|
|
5,009,202
|
|
||
Less: Cemetery perpetual care trust investments
|
(1,477,798
|
)
|
|
(1,532,167
|
)
|
||
Preneed trust investments
|
3,373,709
|
|
|
3,477,035
|
|
||
|
|
|
|
||||
Preneed receivables, net and trust investments
|
$
|
4,271,392
|
|
|
$
|
4,778,842
|
|
(1)
|
Upon adoption of
"Revenue from Contracts with Customers"
on January 1, 2018, we reclassified amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts as a reduction in
Deferred revenue, net.
As a result of this reclassification, we eliminated the allowance for cancellation on these performance obligations.
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
(In thousands)
|
|
|
||||||
Deposits
|
$
|
393,523
|
|
|
$
|
371,234
|
|
|
$
|
321,232
|
|
Withdrawals
|
$
|
432,822
|
|
|
$
|
415,283
|
|
|
$
|
350,379
|
|
Purchases of securities
|
$
|
1,540,093
|
|
|
$
|
2,057,348
|
|
|
$
|
1,462,900
|
|
Sales of securities
|
$
|
1,564,968
|
|
|
$
|
1,999,918
|
|
|
$
|
1,393,728
|
|
Realized gains from sales of securities
(1)
|
$
|
305,595
|
|
|
$
|
256,413
|
|
|
$
|
100,284
|
|
Realized losses from sales of securities
(1)
|
$
|
(77,996
|
)
|
|
$
|
(76,963
|
)
|
|
$
|
(113,806
|
)
|
(1)
|
All realized gains and losses are recognized in
Other income (expense), net
for our trust investments and are offset by a corresponding reclassification in
Other income (expense), net
to
Deferred receipts held in trust
and
Care trusts’ corpus
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
(In thousands)
|
|
|
||||||
Beginning balance -
Preneed receivables, net and trust investments
|
$
|
4,778,842
|
|
|
$
|
4,305,165
|
|
|
$
|
4,078,464
|
|
Net preneed contract sales
|
1,325,134
|
|
|
1,257,288
|
|
|
1,159,194
|
|
|||
Cash receipts from customers, net of refunds
|
(1,185,717
|
)
|
|
(1,109,380
|
)
|
|
(1,030,703
|
)
|
|||
Deposits to trust
|
347,601
|
|
|
328,241
|
|
|
279,782
|
|
|||
Acquisitions of businesses, net
|
134,729
|
|
|
8,153
|
|
|
1,477
|
|
|||
Net undistributed investment (losses) earnings
(1)
|
(191,611
|
)
|
|
384,512
|
|
|
145,511
|
|
|||
Maturities and distributed earnings
|
(433,036
|
)
|
|
(411,452
|
)
|
|
(337,912
|
)
|
|||
Change in cancellation allowance
|
62,131
|
|
|
(528
|
)
|
|
3,329
|
|
|||
Change in amounts due on unfulfilled performance obligations
|
(546,554
|
)
|
|
—
|
|
|
—
|
|
|||
Effect of foreign currency and other
|
(20,127
|
)
|
|
16,843
|
|
|
6,023
|
|
|||
Ending balance -
Preneed receivables, net and trust investments
|
$
|
4,271,392
|
|
|
$
|
4,778,842
|
|
|
$
|
4,305,165
|
|
(1)
|
Includes both realized and unrealized investment (losses) earnings.
|
|
|
December 31, 2018
|
||||||||||||||
|
Fair Value Hierarchy Level
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Value
|
||||||||
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury
|
2
|
$
|
49,187
|
|
|
$
|
153
|
|
|
$
|
(448
|
)
|
|
$
|
48,892
|
|
Canadian government
|
2
|
56,343
|
|
|
23
|
|
|
(1,797
|
)
|
|
54,569
|
|
||||
Corporate
|
2
|
19,869
|
|
|
13
|
|
|
(516
|
)
|
|
19,366
|
|
||||
Residential mortgage-backed
|
2
|
3,611
|
|
|
10
|
|
|
(50
|
)
|
|
3,571
|
|
||||
Asset-backed
|
2
|
142
|
|
|
2
|
|
|
(11
|
)
|
|
133
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|||||||
Preferred stock
|
2
|
9,058
|
|
|
180
|
|
|
(412
|
)
|
|
8,826
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|||||||
United States
|
1
|
1,236,513
|
|
|
149,233
|
|
|
(138,141
|
)
|
|
1,247,605
|
|
||||
Canada
|
1
|
34,821
|
|
|
9,082
|
|
|
(3,026
|
)
|
|
40,877
|
|
||||
Other international
|
1
|
77,676
|
|
|
6,057
|
|
|
(10,275
|
)
|
|
73,458
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|||||||
Equity
|
1
|
760,887
|
|
|
7,104
|
|
|
(151,853
|
)
|
|
616,138
|
|
||||
Fixed income
|
1
|
1,180,325
|
|
|
800
|
|
|
(89,179
|
)
|
|
1,091,946
|
|
||||
Other
|
3
|
6,548
|
|
|
3,210
|
|
|
(3
|
)
|
|
9,755
|
|
||||
Trust investments, at fair value
|
|
3,434,980
|
|
|
175,867
|
|
|
(395,711
|
)
|
|
3,215,136
|
|
||||
Commingled funds
|
|
|
|
|
|
|
|
|
||||||||
Fixed income
|
|
419,206
|
|
|
2,419
|
|
|
(18,981
|
)
|
|
402,644
|
|
||||
Equity
|
|
205,789
|
|
|
19,567
|
|
|
(11,723
|
)
|
|
213,633
|
|
||||
Money market funds
|
|
466,429
|
|
|
—
|
|
|
—
|
|
|
466,429
|
|
||||
Private equity
|
|
215,618
|
|
|
72,897
|
|
|
(637
|
)
|
|
287,878
|
|
||||
Trust investments, at net asset value
|
|
1,307,042
|
|
|
94,883
|
|
|
(31,341
|
)
|
|
1,370,584
|
|
||||
Trust investments, at market
|
|
$
|
4,742,022
|
|
|
$
|
270,750
|
|
|
$
|
(427,052
|
)
|
|
$
|
4,585,720
|
|
|
|
December 31, 2017
|
||||||||||||||
|
Fair Value Hierarchy Level
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Value
|
||||||||
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury
|
2
|
$
|
48,805
|
|
|
$
|
14
|
|
|
$
|
(117
|
)
|
|
$
|
48,702
|
|
Canadian government
|
2
|
81,500
|
|
|
160
|
|
|
(1,089
|
)
|
|
80,571
|
|
||||
Corporate
|
2
|
13,540
|
|
|
327
|
|
|
(170
|
)
|
|
13,697
|
|
||||
Residential mortgage-backed
|
2
|
3,279
|
|
|
16
|
|
|
(14
|
)
|
|
3,281
|
|
||||
Asset-backed
|
2
|
320
|
|
|
15
|
|
|
(10
|
)
|
|
325
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|||||||
Preferred stock
|
2
|
7,834
|
|
|
385
|
|
|
(139
|
)
|
|
8,080
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|||||||
United States
|
1
|
1,161,015
|
|
|
266,822
|
|
|
(24,739
|
)
|
|
1,403,098
|
|
||||
Canada
|
1
|
30,762
|
|
|
12,545
|
|
|
(522
|
)
|
|
42,785
|
|
||||
Other international
|
1
|
63,510
|
|
|
13,174
|
|
|
(2,834
|
)
|
|
73,850
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|||||||
Equity
|
1
|
613,934
|
|
|
59,100
|
|
|
(4,312
|
)
|
|
668,722
|
|
||||
Fixed income
|
1
|
1,230,196
|
|
|
11,897
|
|
|
(23,943
|
)
|
|
1,218,150
|
|
||||
Other
|
3
|
5,953
|
|
|
3,114
|
|
|
—
|
|
|
9,067
|
|
||||
Trust investments, at fair value
|
|
3,260,648
|
|
|
367,569
|
|
|
(57,889
|
)
|
|
3,570,328
|
|
||||
Commingled funds
|
|
|
|
|
|
|
|
|
||||||||
Fixed income
|
|
454,242
|
|
|
235
|
|
|
(5,860
|
)
|
|
448,617
|
|
||||
Equity
|
|
214,000
|
|
|
12,826
|
|
|
—
|
|
|
226,826
|
|
||||
Money market funds
|
|
287,435
|
|
|
—
|
|
|
—
|
|
|
287,435
|
|
||||
Private equity
|
|
166,860
|
|
|
51,631
|
|
|
(2,149
|
)
|
|
216,342
|
|
||||
Trust investments, at net asset value
|
|
1,122,537
|
|
|
64,692
|
|
|
(8,009
|
)
|
|
1,179,220
|
|
||||
Trust investments, at market
|
|
$
|
4,383,185
|
|
|
$
|
432,261
|
|
|
$
|
(65,898
|
)
|
|
$
|
4,749,548
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(In thousands)
|
||||||||||
Fair value, beginning balance at January 1
|
|
$
|
9,067
|
|
|
$
|
7,163
|
|
|
$
|
8,162
|
|
Net realized and unrealized (losses) gains included in
Other income (expense), net
(1)
|
|
(697
|
)
|
|
912
|
|
|
251
|
|
|||
Purchases
|
|
66
|
|
|
1,945
|
|
|
89
|
|
|||
Sales
|
|
(26
|
)
|
|
(953
|
)
|
|
(1,339
|
)
|
|||
Acquisitions, net
|
|
1,345
|
|
|
—
|
|
|
—
|
|
|||
Fair value, ending balance at December 31
|
|
$
|
9,755
|
|
|
$
|
9,067
|
|
|
$
|
7,163
|
|
(1)
|
All net realized and unrealized (losses) gains recognized in
Other income (expense), net
for our trust investments are offset by a corresponding reclassification in
Other income (expense), net
to
Deferred receipts held in trust
and
Care trusts' corpus.
|
|
Fair Value
|
||
|
(In thousands)
|
||
Due in one year or less
|
$
|
62,374
|
|
Due in one to five years
|
53,512
|
|
|
Due in five to ten years
|
9,698
|
|
|
Thereafter
|
947
|
|
|
Total estimated maturities of fixed income securities
|
$
|
126,531
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
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
|
$
|
6,899
|
|
|
$
|
(226
|
)
|
|
$
|
16,374
|
|
|
$
|
(222
|
)
|
|
$
|
23,273
|
|
|
$
|
(448
|
)
|
Canadian government
|
2,254
|
|
|
(9
|
)
|
|
25,330
|
|
|
(1,788
|
)
|
|
27,584
|
|
|
(1,797
|
)
|
||||||
Corporate
|
11,579
|
|
|
(206
|
)
|
|
6,563
|
|
|
(310
|
)
|
|
18,142
|
|
|
(516
|
)
|
||||||
Residential mortgage-backed
|
351
|
|
|
(4
|
)
|
|
3,010
|
|
|
(46
|
)
|
|
3,361
|
|
|
(50
|
)
|
||||||
Asset-backed
|
—
|
|
|
—
|
|
|
79
|
|
|
(11
|
)
|
|
79
|
|
|
(11
|
)
|
||||||
Total fixed income temporarily impaired securities
|
$
|
21,083
|
|
|
$
|
(445
|
)
|
|
$
|
51,356
|
|
|
$
|
(2,377
|
)
|
|
$
|
72,439
|
|
|
$
|
(2,822
|
)
|
|
December 31, 2017
|
||||||||||||||||||||||
|
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
|
$
|
29,014
|
|
|
$
|
(115
|
)
|
|
$
|
106
|
|
|
$
|
(2
|
)
|
|
$
|
29,120
|
|
|
$
|
(117
|
)
|
Canadian government
|
20,947
|
|
|
(639
|
)
|
|
6,370
|
|
|
(450
|
)
|
|
27,317
|
|
|
(1,089
|
)
|
||||||
Corporate
|
2,423
|
|
|
(31
|
)
|
|
4,453
|
|
|
(139
|
)
|
|
6,876
|
|
|
(170
|
)
|
||||||
Residential mortgage-backed
|
2,880
|
|
|
(12
|
)
|
|
151
|
|
|
(2
|
)
|
|
3,031
|
|
|
(14
|
)
|
||||||
Asset-backed
|
—
|
|
|
—
|
|
|
74
|
|
|
(10
|
)
|
|
74
|
|
|
(10
|
)
|
||||||
Total fixed income temporarily impaired securities
|
$
|
55,264
|
|
|
$
|
(797
|
)
|
|
$
|
11,154
|
|
|
$
|
(603
|
)
|
|
$
|
66,418
|
|
|
$
|
(1,400
|
)
|
|
Years Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
Deferred revenue
|
$
|
1,989,232
|
|
|
$
|
1,789,776
|
|
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts
(1)
|
(570,418
|
)
|
|
—
|
|
||
Deferred revenue, net
|
$
|
1,418,814
|
|
|
$
|
1,789,776
|
|
(1)
|
Prior to adoption of
"Revenue from Contracts with Customers"
on January 1, 2018, amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts were included in
Preneed receivables, net and trust investments
.
|
Beginning balance —
Deferred revenue, net
and
Deferred receipts held in trust
|
$
|
5,265,206
|
|
Cumulative effect of accounting changes
|
37,991
|
|
|
Net preneed contract sales
|
977,378
|
|
|
Acquisitions of businesses, net
|
159,560
|
|
|
Net investment losses
(1)
|
(195,051
|
)
|
|
Recognized revenue from backlog
(2)
|
(381,041
|
)
|
|
Recognized revenue from current period sales
|
(572,428
|
)
|
|
Change in amounts due on unfulfilled performance obligations
|
(546,554
|
)
|
|
Change in cancellation reserve
|
65,817
|
|
|
Effect of foreign currency and other
|
(20,326
|
)
|
|
Ending balance —
Deferred revenue, net
and
Deferred receipts held in trust
|
$
|
4,790,552
|
|
(1)
|
Includes both realized and unrealized investment losses.
|
(2)
|
Includes current year trust fund income through the date of performance.
|
|
Years Ended December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(In thousands)
|
||||||
Beginning balance —
Deferred revenue, net
|
$
|
1,731,417
|
|
|
$
|
1,677,898
|
|
Net preneed contract sales
|
900,037
|
|
|
847,848
|
|
||
Acquisitions of businesses, net
|
10,488
|
|
|
193
|
|
||
Net investment earnings
(1)
|
381,436
|
|
|
146,103
|
|
||
Recognized revenue
|
(876,857
|
)
|
|
(823,319
|
)
|
||
Change in cancellation allowance
|
(165
|
)
|
|
5,396
|
|
||
Change in deferred receipts held in trust
|
(361,499
|
)
|
|
(124,923
|
)
|
||
Effect of foreign currency and other
|
4,919
|
|
|
2,221
|
|
||
Ending balance —
Deferred revenue, net
|
$
|
1,789,776
|
|
|
$
|
1,731,417
|
|
(1)
|
Includes both realized and unrealized investment earnings.
|
4.
|
Goodwill and Intangible Assets
|
|
Years Ended December 31,
|
||||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||||
|
Funeral
|
|
Cemetery
|
|
Total
|
|
Funeral
|
|
Cemetery
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Beginning balance--
Goodwill
|
$
|
1,499,741
|
|
|
$
|
306,240
|
|
|
$
|
1,805,981
|
|
|
$
|
1,493,655
|
|
|
$
|
305,426
|
|
|
$
|
1,799,081
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase in goodwill related to acquisitions
|
38,976
|
|
|
29,219
|
|
|
68,195
|
|
|
8,013
|
|
|
1,215
|
|
|
9,228
|
|
||||||
Reduction of goodwill related to divestitures
|
(2,183
|
)
|
|
(24
|
)
|
|
(2,207
|
)
|
|
(8,495
|
)
|
|
(401
|
)
|
|
(8,896
|
)
|
||||||
Effect of foreign currency
|
(8,127
|
)
|
|
—
|
|
|
(8,127
|
)
|
|
6,568
|
|
|
—
|
|
|
6,568
|
|
||||||
Activity
|
28,666
|
|
|
29,195
|
|
|
57,861
|
|
|
6,086
|
|
|
814
|
|
|
6,900
|
|
||||||
Ending balance--
Goodwill
|
$
|
1,528,407
|
|
|
$
|
335,435
|
|
|
$
|
1,863,842
|
|
|
$
|
1,499,741
|
|
|
$
|
306,240
|
|
|
$
|
1,805,981
|
|
2019
|
$
|
8,167
|
|
2020
|
7,076
|
|
|
2021
|
6,966
|
|
|
2022
|
5,801
|
|
|
2023
|
5,410
|
|
|
Total estimated amortization expense
|
$
|
33,420
|
|
5.
|
Income Taxes
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands)
|
||||||||||
Current:
|
|
|
|
|
|
|
|
|
|||
United States
|
$
|
18,138
|
|
|
$
|
154,128
|
|
|
$
|
113,629
|
|
Foreign
|
10,541
|
|
|
12,187
|
|
|
12,084
|
|
|||
State
|
6,974
|
|
|
4,934
|
|
|
16,150
|
|
|||
Total current income taxes
|
35,653
|
|
|
171,249
|
|
|
141,863
|
|
|||
Deferred:
|
|
|
|
|
|
|
|
|
|||
United States
|
$
|
(48,565
|
)
|
|
$
|
(314,389
|
)
|
|
$
|
(19,496
|
)
|
Foreign
|
386
|
|
|
618
|
|
|
22,708
|
|
|||
State
|
6,700
|
|
|
(4,067
|
)
|
|
4,278
|
|
|||
Total deferred income taxes
|
(41,479
|
)
|
|
(317,838
|
)
|
|
7,490
|
|
|||
Total income taxes
|
$
|
(5,826
|
)
|
|
$
|
(146,589
|
)
|
|
$
|
149,353
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands)
|
||||||||||
Computed tax provision at the applicable federal statutory income tax rate
|
$
|
92,764
|
|
|
$
|
140,090
|
|
|
$
|
114,331
|
|
State and local taxes, net of federal income tax benefits
|
10,146
|
|
|
8,216
|
|
|
13,279
|
|
|||
Foreign jurisdiction differences
|
2,377
|
|
|
(6,782
|
)
|
|
(2,557
|
)
|
|||
Permanent differences associated with divestitures
|
790
|
|
|
1,925
|
|
|
9,267
|
|
|||
Changes in uncertain tax positions and audit settlements
|
(88,687
|
)
|
|
(105,821
|
)
|
|
5,669
|
|
|||
Foreign valuation allowance, net of federal income tax benefits
|
(431
|
)
|
|
1,186
|
|
|
15,850
|
|
|||
Enactment of U.S. Tax Act
|
(16,105
|
)
|
|
(146,160
|
)
|
|
—
|
|
|||
Excess tax benefit from share-based compensation
|
(11,159
|
)
|
|
(18,521
|
)
|
|
—
|
|
|||
Other
|
4,479
|
|
|
(20,722
|
)
|
|
(6,486
|
)
|
|||
(Benefit from) provision for income taxes
|
$
|
(5,826
|
)
|
|
$
|
(146,589
|
)
|
|
$
|
149,353
|
|
Total consolidated effective tax rate
|
(1.3
|
)%
|
|
(36.6
|
)%
|
|
45.7
|
%
|
|
Years Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
Inventories and cemetery property
|
$
|
(220,537
|
)
|
|
$
|
(222,431
|
)
|
Deferred incremental direct selling costs
|
(73,696
|
)
|
|
—
|
|
||
Property and equipment
|
(122,281
|
)
|
|
(109,631
|
)
|
||
Intangibles
|
(197,815
|
)
|
|
(194,159
|
)
|
||
Other
|
—
|
|
|
(4,902
|
)
|
||
Deferred tax liabilities
|
(614,329
|
)
|
|
(531,123
|
)
|
||
Loss and tax credit carryforwards
|
153,688
|
|
|
170,979
|
|
||
Deferred revenue on preneed funeral and cemetery contracts
|
113,970
|
|
|
155,679
|
|
||
Accrued liabilities
|
63,558
|
|
|
62,727
|
|
||
Other
|
90
|
|
|
—
|
|
||
Deferred tax assets
|
331,306
|
|
|
389,385
|
|
||
Less: valuation allowance
|
(120,931
|
)
|
|
(141,154
|
)
|
||
Net deferred income tax liability
|
$
|
(403,954
|
)
|
|
$
|
(282,892
|
)
|
|
Years Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
Non-current deferred tax assets
|
$
|
673
|
|
|
$
|
873
|
|
Non-current deferred tax liabilities
|
(404,627
|
)
|
|
(283,765
|
)
|
||
Net deferred income tax liability
|
$
|
(403,954
|
)
|
|
$
|
(282,892
|
)
|
|
Federal, State, and Foreign Tax
|
||
|
(In thousands)
|
||
Balance at December 31, 2015
|
$
|
182,545
|
|
Reductions to tax positions related to prior years
|
(4,219
|
)
|
|
Balance at December 31, 2016
|
$
|
178,326
|
|
Reductions to tax positions as a result of audit settlement
|
(30,333
|
)
|
|
Reductions to tax positions related to prior years
|
(68,538
|
)
|
|
Balance at December 31, 2017
|
$
|
79,455
|
|
Additions to tax positions related to prior years
|
1,348
|
|
|
Reduction to tax positions due to expiration of statutes of limitations
|
(79,455
|
)
|
|
Balance at December 31, 2018
|
$
|
1,348
|
|
|
Federal
|
|
State
|
|
Foreign
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
2019
|
$
|
—
|
|
|
$
|
119,956
|
|
|
$
|
—
|
|
|
$
|
119,956
|
|
2020
|
—
|
|
|
174,507
|
|
|
—
|
|
|
174,507
|
|
||||
2021
|
—
|
|
|
152,788
|
|
|
—
|
|
|
152,788
|
|
||||
2022
|
—
|
|
|
80,831
|
|
|
—
|
|
|
80,831
|
|
||||
Thereafter
|
3,652
|
|
|
2,152,860
|
|
|
11,329
|
|
|
2,167,841
|
|
||||
Total
|
$
|
3,652
|
|
|
$
|
2,680,942
|
|
|
$
|
11,329
|
|
|
$
|
2,695,923
|
|
|
Federal
|
|
State
|
|
Foreign
|
|
Total
|
||||||||
|
|
|
(In thousands)
|
|
|
||||||||||
Loss and tax credit carryforwards
|
$
|
767
|
|
|
$
|
146,275
|
|
|
$
|
6,646
|
|
|
$
|
153,688
|
|
Valuation allowance
|
$
|
—
|
|
|
$
|
100,625
|
|
|
$
|
20,306
|
|
|
$
|
120,931
|
|
|
Years Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
7.625% Senior Notes due October 2018
|
$
|
—
|
|
|
$
|
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
|
|
|
850,000
|
|
||
7.5% Senior Notes due April 2027
|
200,000
|
|
|
200,000
|
|
||
4.625% Senior Notes due December 2027
|
550,000
|
|
|
550,000
|
|
||
Term Loan due December 2022
|
641,250
|
|
|
675,000
|
|
||
Bank Credit Facility due December 2022
|
395,000
|
|
|
—
|
|
||
Obligations under capital leases
|
211,952
|
|
|
197,232
|
|
||
Mortgage notes and other debt, maturities through 2050
|
4,076
|
|
|
6,036
|
|
||
Unamortized premiums and discounts, net
|
6,562
|
|
|
7,456
|
|
||
Unamortized debt issuance costs
|
(31,762
|
)
|
|
(38,071
|
)
|
||
Total debt
|
3,602,078
|
|
|
3,472,653
|
|
||
Less: Current maturities of long-term debt
|
(69,896
|
)
|
|
(337,337
|
)
|
||
Total long-term debt
|
$
|
3,532,182
|
|
|
$
|
3,135,316
|
|
2019
|
$
|
75,037
|
|
2020
|
281,186
|
|
|
2021
|
238,470
|
|
|
2022
|
1,379,873
|
|
|
2023
|
14,193
|
|
|
2024 and thereafter
|
1,638,519
|
|
|
Total debt maturities
|
$
|
3,627,278
|
|
•
|
$175.0 million
to fund the redemption of our 7.625% Senior Notes due October 2018 in January 2018.
|
•
|
$10.0 million
to make required payments on our Term Loan due December 2022 in March 2018.
|
•
|
$185.0 million
to fund acquisition activity, to make required payments on our Term Loan due December 2022, and for general corporate purposes in June 2018.
|
•
|
$25.0 million
to fund acquisition activity and for general corporate purposes in September 2018.
|
•
|
$250.0 million
in aggregate principal of our 7.625% Senior Notes due October 2018;
|
•
|
$9.6 million
in call premium for redemption of the 7.625% Senior Notes due October 2018;
|
•
|
$33.8 million
in aggregate principal of our Term Loan due December 2022; and
|
•
|
$0.3 million
in other debt.
|
•
|
$
647.5 million
in aggregate principal of our Term Loan due March 2021;
|
•
|
$
470.0 million
in aggregate principal of our Bank Credit Facility due March 2021;
|
•
|
$
442.5 million
in aggregate principal of our Bank Credit Facility due December 2022;
|
•
|
$
26.3 million
in aggregate principal of our Term Loan due March 2021 as a scheduled payment; and
|
•
|
$0.2 million
in other debt.
|
Payments in 2018
|
$
|
179,865
|
|
Payments in 2017
|
$
|
160,843
|
|
Payments in 2016
|
$
|
156,950
|
|
Payments in 2019
|
$
|
179,665
|
|
Payments in 2020
|
177,275
|
|
|
Payments in 2021
|
166,511
|
|
|
Payments in 2022
|
129,293
|
|
|
Payments in 2023
|
87,842
|
|
|
Payments in 2024 and thereafter
|
172,932
|
|
|
Total expected cash interest payments
|
$
|
913,518
|
|
7.
|
Credit Risk and Fair Value of Financial Instruments
|
|
Years Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
7.625% Senior Notes due October 2018
|
$
|
—
|
|
|
$
|
259,563
|
|
4.5% Senior Notes due November 2020
|
198,930
|
|
|
199,590
|
|
||
8.0% Senior Notes due November 2021
|
160,800
|
|
|
175,313
|
|
||
5.375% Senior Notes due January 2022
|
428,188
|
|
|
436,178
|
|
||
5.375% Senior Notes due May 2024
|
851,275
|
|
|
892,118
|
|
||
4.625% Senior Notes due December 2027
|
517,077
|
|
|
558,250
|
|
||
7.5% Senior Notes due April 2027
|
214,940
|
|
|
238,004
|
|
||
Term Loan due December 2022
|
629,579
|
|
|
675,000
|
|
||
Bank Credit Facility due December 2022
|
387,061
|
|
|
—
|
|
||
Mortgage notes and other debt, maturities through 2050
|
4,076
|
|
|
6,036
|
|
||
Total fair value of debt instruments
|
$
|
3,391,926
|
|
|
$
|
3,440,052
|
|
8.
|
Commitments and Contingencies
|
|
Operating
|
|
Capital
|
||||
|
(In thousands)
|
||||||
2019
|
$
|
11,295
|
|
|
$
|
46,998
|
|
2020
|
9,550
|
|
|
51,943
|
|
||
2021
|
8,251
|
|
|
57,881
|
|
||
2022
|
7,282
|
|
|
21,842
|
|
||
2023
|
5,397
|
|
|
15,587
|
|
||
2024 and thereafter
|
37,841
|
|
|
40,447
|
|
||
Total
|
$
|
79,616
|
|
|
$
|
234,698
|
|
Less: Interest on capital leases
|
|
|
(22,746
|
)
|
|||
Total principal payable on capital leases
|
|
|
|
$
|
211,952
|
|
|
Employment and Management
|
|
Consulting
|
|
Non-Competition
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
2019
|
$
|
1,823
|
|
|
$
|
632
|
|
|
$
|
5,671
|
|
|
$
|
8,126
|
|
2020
|
1,116
|
|
|
517
|
|
|
4,365
|
|
|
5,998
|
|
||||
2021
|
674
|
|
|
387
|
|
|
3,301
|
|
|
4,362
|
|
||||
2022
|
332
|
|
|
307
|
|
|
2,683
|
|
|
3,322
|
|
||||
2023
|
94
|
|
|
78
|
|
|
1,874
|
|
|
2,046
|
|
||||
2024 and thereafter
|
—
|
|
|
214
|
|
|
5,921
|
|
|
6,135
|
|
||||
Total
|
$
|
4,039
|
|
|
$
|
2,135
|
|
|
$
|
23,815
|
|
|
$
|
29,989
|
|
9.
|
Equity
|
10.
|
Share-Based Compensation
|
|
|
Years Ended December 31,
|
||||
Assumptions
|
|
2018
|
|
2017
|
|
2016
|
Dividend yield
|
|
1.8%
|
|
2.0%
|
|
2.0%
|
Expected volatility
|
|
18.5%
|
|
19.0%
|
|
19.7%
|
Risk-free interest rate
|
|
2.4%
|
|
1.6%
|
|
1.0%
|
Expected holding period (years)
|
|
4.0
|
|
4.0
|
|
4.0
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands)
|
||||||||||
Total pretax employee share-based compensation expense included in net income
|
$
|
15,626
|
|
|
$
|
14,788
|
|
|
$
|
14,056
|
|
Income tax benefit related to share-based compensation included in net income
|
$
|
3,998
|
|
|
$
|
5,416
|
|
|
$
|
6,427
|
|
|
Options
|
|
Weighted-Average
Exercise Price
|
|||
Outstanding at December 31, 2017
|
9,520,299
|
|
|
$
|
19.77
|
|
Granted
|
1,199,420
|
|
|
$
|
37.50
|
|
Exercised
|
(1,801,776
|
)
|
|
$
|
13.61
|
|
Outstanding at December 31, 2018
|
8,917,943
|
|
|
$
|
23.40
|
|
Exercisable at December 31, 2018
|
6,145,297
|
|
|
$
|
19.81
|
|
|
|
Options Outstanding
|
|
Options Exercisable
|
||||||||||||
Range of Exercise Price
|
|
Number
Outstanding at
December 31, 2018
|
|
Weighted-Average Remaining Contractual Life
(in years)
|
|
Weighted-
Average Exercise Price
|
|
Number
Exercisable at
December 31, 2018
|
|
Weighted-
Average Exercise Price
|
||||||
$ 0.00 — 10.00
|
|
3,127
|
|
|
0.1
|
|
$
|
9.09
|
|
|
3,127
|
|
|
$
|
9.09
|
|
$10.01 — 20.00
|
|
2,878,785
|
|
|
2.4
|
|
$
|
15.38
|
|
|
2,878,785
|
|
|
$
|
15.38
|
|
$20.01 — 30.00
|
|
4,836,611
|
|
|
5.1
|
|
$
|
24.68
|
|
|
3,263,385
|
|
|
$
|
23.73
|
|
$30.01 — 40.00
|
|
1,199,420
|
|
|
7.1
|
|
$
|
37.50
|
|
|
—
|
|
|
$
|
—
|
|
$0.00 — 40.00
|
|
8,917,943
|
|
|
4.5
|
|
$
|
23.40
|
|
|
6,145,297
|
|
|
$
|
19.81
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Weighted average grant-date fair value of stock options granted
|
$
|
5.52
|
|
|
$
|
3.90
|
|
|
$
|
4.01
|
|
Total fair value of stock options vested
|
$
|
6,857
|
|
|
$
|
7,425
|
|
|
$
|
7,690
|
|
Total intrinsic value of stock options exercised
|
$
|
48,643
|
|
|
$
|
56,946
|
|
|
$
|
37,284
|
|
Cash received from the exercise of stock options
|
$
|
24,517
|
|
|
$
|
33,611
|
|
|
$
|
17,662
|
|
Recognized compensation expense
|
$
|
6,648
|
|
|
$
|
6,909
|
|
|
$
|
7,633
|
|
|
Restricted
Share Awards
|
|
Weighted-Average
Grant-Date
Fair Value
|
|||
Nonvested restricted share awards at December 31, 2017
|
441,811
|
|
|
$
|
25.70
|
|
Granted
|
177,944
|
|
|
$
|
37.50
|
|
Vested
|
(230,510
|
)
|
|
$
|
24.74
|
|
Nonvested restricted share awards at December 31, 2018
|
389,245
|
|
|
$
|
31.67
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Recognized compensation expense related to restricted share awards
|
$
|
6,063
|
|
|
$
|
5,564
|
|
|
$
|
5,640
|
|
Weighted-average grant date fair value for nonvested restricted stock granted
|
$
|
37.50
|
|
|
$
|
29.28
|
|
|
$
|
22.28
|
|
Total fair market value of restricted share awards vested
|
$
|
5,702
|
|
|
$
|
5,463
|
|
|
$
|
5,682
|
|
Aggregate intrinsic value of restricted share awards vested
|
$
|
3,578
|
|
|
$
|
4,454
|
|
|
$
|
3,214
|
|
|
Restricted
Share Units
|
|
Weighted-Average
Grant-Date
Fair Value
|
|||
Nonvested restricted share units at December 31, 2017
|
167,030
|
|
|
$
|
26.92
|
|
Granted
|
84,604
|
|
|
$
|
35.89
|
|
Vested
|
(72,437
|
)
|
|
$
|
26.86
|
|
Forfeited and other
|
(3,896
|
)
|
|
$
|
31.63
|
|
Nonvested restricted share units at December 31, 2018
|
175,301
|
|
|
$
|
31.17
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Recognized compensation expense related to restricted share units
|
$
|
2,862
|
|
|
$
|
2,052
|
|
|
$
|
820
|
|
Weighted-average grant date fair value for nonvested restricted share units granted
|
$
|
35.89
|
|
|
$
|
27.94
|
|
|
$
|
25.72
|
|
Total fair market value of restricted share units vested
|
$
|
1,946
|
|
|
$
|
1,239
|
|
|
$
|
50
|
|
Aggregate intrinsic value of restricted share units vested
|
$
|
970
|
|
|
$
|
558
|
|
|
$
|
5
|
|
11.
|
Retirement Plans
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands)
|
||||||||||
Interest cost on projected benefit obligation
|
$
|
923
|
|
|
$
|
1,067
|
|
|
$
|
1,179
|
|
Recognized net actuarial (gains) losses
|
(1,127
|
)
|
|
879
|
|
|
259
|
|
|||
Total net periodic benefit cost
|
$
|
(204
|
)
|
|
$
|
1,946
|
|
|
$
|
1,438
|
|
|
Years Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
Change in Benefit Obligation:
|
|
|
|
|
|
||
Benefit obligation at beginning of year
|
$
|
28,681
|
|
|
$
|
30,078
|
|
Interest cost
|
923
|
|
|
1,067
|
|
||
Actuarial (gain) loss
|
(1,127
|
)
|
|
879
|
|
||
Benefits paid
|
(3,770
|
)
|
|
(3,343
|
)
|
||
Benefit obligation at end of year
|
$
|
24,707
|
|
|
$
|
28,681
|
|
Change in Plan Assets:
|
|
|
|
|
|
||
Fair value of plan assets at beginning of year
|
$
|
—
|
|
|
$
|
—
|
|
Employer contributions
|
3,770
|
|
|
3,343
|
|
||
Benefits paid, including expenses
|
(3,770
|
)
|
|
(3,343
|
)
|
||
Fair value of plan assets at end of year
|
$
|
—
|
|
|
$
|
—
|
|
Funded status of plan
|
$
|
(24,707
|
)
|
|
$
|
(28,681
|
)
|
|
|
|
|
||||
Funding Summary:
|
|
|
|
|
|
||
Projected benefit obligations
|
$
|
24,707
|
|
|
$
|
28,681
|
|
Accumulated benefit obligation
|
$
|
24,707
|
|
|
$
|
28,681
|
|
Amounts Recognized in the Consolidated Balance Sheet:
|
|
|
|
|
|
||
Included in
Accounts payable and accrued liabilities
|
$
|
(3,175
|
)
|
|
$
|
(3,265
|
)
|
Included in
Other liabilities
|
(21,532
|
)
|
|
(25,416
|
)
|
||
Total accrued benefit liability
|
$
|
(24,707
|
)
|
|
$
|
(28,681
|
)
|
|
Years Ended December 31,
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
Weighted-average discount rate used to determine obligations
|
4.13
|
%
|
|
3.41
|
%
|
|
3.76
|
%
|
Weighted-average discount rate used to determine net periodic benefit cost
|
3.26
|
%
|
|
3.86
|
%
|
|
3.96
|
%
|
2019
|
$
|
3,175
|
|
2020
|
2,728
|
|
|
2021
|
2,398
|
|
|
2022
|
2,319
|
|
|
2023
|
2,073
|
|
|
Years 2024 through 2028
|
8,622
|
|
|
Total expected benefit payments
|
$
|
21,315
|
|
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
|
12.
|
Segment Reporting
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
(1)
|
|
2016
(1)
|
||||||
|
(In thousands)
|
|
|
||||||||
Revenue from customers:
|
|
|
|
|
|
||||||
Funeral revenue:
|
|
|
|
|
|
||||||
Atneed revenue
|
$
|
998,464
|
|
|
$
|
1,011,214
|
|
|
$
|
1,045,533
|
|
Matured preneed revenue
|
600,944
|
|
|
574,235
|
|
|
538,013
|
|
|||
Core funeral revenue
|
1,599,408
|
|
|
1,585,449
|
|
|
1,583,546
|
|
|||
Non-funeral home revenue
|
49,671
|
|
|
46,513
|
|
|
42,957
|
|
|||
Recognized preneed revenue
|
125,144
|
|
|
117,352
|
|
|
111,640
|
|
|||
Other revenue
|
123,769
|
|
|
118,838
|
|
|
130,968
|
|
|||
Total funeral revenue
|
1,897,992
|
|
|
1,868,152
|
|
|
1,869,111
|
|
|||
Cemetery revenue:
|
|
|
|
|
|
||||||
Atneed revenue
|
323,162
|
|
|
319,899
|
|
|
307,826
|
|
|||
Recognized preneed property revenue
|
572,955
|
|
|
538,314
|
|
|
515,854
|
|
|||
Recognized preneed merchandise and services revenue
|
288,282
|
|
|
274,885
|
|
|
240,301
|
|
|||
Core cemetery revenue
|
1,184,399
|
|
|
1,133,098
|
|
|
1,063,981
|
|
|||
Other revenue
|
107,783
|
|
|
93,781
|
|
|
98,045
|
|
|||
Total cemetery revenue
|
1,292,182
|
|
|
1,226,879
|
|
|
1,162,026
|
|
|||
Total revenue from customers
|
$
|
3,190,174
|
|
|
$
|
3,095,031
|
|
|
$
|
3,031,137
|
|
Operating profit:
|
|
|
|
|
|
||||||
Funeral operating profit
|
$
|
369,613
|
|
|
$
|
371,853
|
|
|
$
|
361,022
|
|
Cemetery operating profit
|
390,709
|
|
|
350,926
|
|
|
315,828
|
|
|||
Operating profit from reportable segments
|
760,322
|
|
|
722,779
|
|
|
676,850
|
|
|||
General and administrative expenses
|
(145,499
|
)
|
|
(153,067
|
)
|
|
(136,708
|
)
|
|||
Gains (losses) on divestitures and impairment charges, net
|
15,933
|
|
|
7,015
|
|
|
(26,819
|
)
|
|||
Hurricane expenses, net
|
(97
|
)
|
|
(5,584
|
)
|
|
—
|
|
|||
Operating income
|
630,659
|
|
|
571,143
|
|
|
513,323
|
|
|||
Interest expense
|
(181,556
|
)
|
|
(169,125
|
)
|
|
(162,093
|
)
|
|||
Losses on early extinguishment of debt, net
|
(10,131
|
)
|
|
(274
|
)
|
|
(22,503
|
)
|
|||
Other income (expense), net
|
2,760
|
|
|
(1,486
|
)
|
|
(2,069
|
)
|
|||
Income before income taxes
|
$
|
441,732
|
|
|
$
|
400,258
|
|
|
$
|
326,658
|
|
(1)
|
The results for the years ended
December 31, 2017
and
2016
have not been adjusted for the impact of our adoption of
"Revenue from Contracts with Customers"
on January 1, 2018.
|
|
Reportable Segments
|
|
|
|
|
||||||||||
|
Funeral
|
|
Cemetery
|
|
Corporate
|
|
Consolidated
|
||||||||
|
(In thousands)
|
|
|
||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest expense
|
$
|
3,634
|
|
|
$
|
469
|
|
|
$
|
177,453
|
|
|
$
|
181,556
|
|
Depreciation and amortization
|
$
|
108,891
|
|
|
$
|
33,183
|
|
|
$
|
11,576
|
|
|
$
|
153,650
|
|
Amortization of intangibles
|
$
|
17,515
|
|
|
$
|
8,619
|
|
|
$
|
61
|
|
|
$
|
26,195
|
|
Amortization of cemetery property
|
$
|
—
|
|
|
$
|
68,640
|
|
|
$
|
—
|
|
|
$
|
68,640
|
|
Capital expenditures
|
$
|
99,008
|
|
|
$
|
125,131
|
|
|
$
|
11,406
|
|
|
$
|
235,545
|
|
Total assets
|
$
|
5,411,178
|
|
|
$
|
6,913,132
|
|
|
$
|
368,933
|
|
|
$
|
12,693,243
|
|
2017
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense
|
$
|
3,986
|
|
|
$
|
401
|
|
|
$
|
164,738
|
|
|
$
|
169,125
|
|
Depreciation and amortization
|
$
|
109,965
|
|
|
$
|
32,815
|
|
|
$
|
10,361
|
|
|
$
|
153,141
|
|
Amortization of intangibles
|
$
|
17,871
|
|
|
$
|
9,696
|
|
|
$
|
83
|
|
|
$
|
27,650
|
|
Amortization of cemetery property
|
$
|
—
|
|
|
$
|
68,102
|
|
|
$
|
—
|
|
|
$
|
68,102
|
|
Capital expenditures
|
$
|
83,241
|
|
|
$
|
118,699
|
|
|
$
|
12,561
|
|
|
$
|
214,501
|
|
Total assets
|
$
|
5,393,205
|
|
|
$
|
6,946,351
|
|
|
$
|
524,947
|
|
|
$
|
12,864,503
|
|
2016
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense
|
$
|
3,906
|
|
|
$
|
105
|
|
|
$
|
158,082
|
|
|
$
|
162,093
|
|
Depreciation and amortization
|
$
|
106,602
|
|
|
$
|
31,081
|
|
|
$
|
9,550
|
|
|
$
|
147,233
|
|
Amortization of intangibles
|
$
|
20,444
|
|
|
$
|
10,438
|
|
|
$
|
74
|
|
|
$
|
30,956
|
|
Amortization of cemetery property
|
$
|
—
|
|
|
$
|
66,745
|
|
|
$
|
—
|
|
|
$
|
66,745
|
|
Capital expenditures
|
$
|
68,666
|
|
|
$
|
113,163
|
|
|
$
|
11,617
|
|
|
$
|
193,446
|
|
(1)
|
The results for the years ended
December 31, 2017
and
2016
have not been adjusted for the impact of our adoption of
"Revenue from Contracts with Customers"
on January 1, 2018.
|
|
United States
|
|
Canada
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
2018
|
|
|
|
|
|
|
|
|
|||
Revenue from external customers
|
$
|
2,991,617
|
|
|
$
|
198,557
|
|
|
$
|
3,190,174
|
|
Interest expense
|
$
|
181,266
|
|
|
$
|
290
|
|
|
$
|
181,556
|
|
Depreciation and amortization
|
$
|
144,877
|
|
|
$
|
8,773
|
|
|
$
|
153,650
|
|
Amortization of intangibles
|
$
|
25,664
|
|
|
$
|
531
|
|
|
$
|
26,195
|
|
Amortization of cemetery property
|
$
|
63,709
|
|
|
$
|
4,931
|
|
|
$
|
68,640
|
|
Operating income
|
$
|
568,446
|
|
|
$
|
62,213
|
|
|
$
|
630,659
|
|
Gains on divestitures and impairment charges, net
|
$
|
8,419
|
|
|
$
|
7,514
|
|
|
$
|
15,933
|
|
Long-lived assets
|
$
|
6,334,924
|
|
|
$
|
277,897
|
|
|
$
|
6,612,821
|
|
2017
(1)
|
|
|
|
|
|
|
|
|
|||
Revenue from external customers
|
$
|
2,889,463
|
|
|
$
|
205,568
|
|
|
$
|
3,095,031
|
|
Interest expense
|
$
|
168,956
|
|
|
$
|
169
|
|
|
$
|
169,125
|
|
Depreciation and amortization
|
$
|
143,932
|
|
|
$
|
9,209
|
|
|
$
|
153,141
|
|
Amortization of intangibles
|
$
|
27,092
|
|
|
$
|
558
|
|
|
$
|
27,650
|
|
Amortization of cemetery property
|
$
|
61,307
|
|
|
$
|
6,795
|
|
|
$
|
68,102
|
|
Operating income
|
$
|
502,865
|
|
|
$
|
68,278
|
|
|
$
|
571,143
|
|
Gains on divestitures and impairment charges, net
|
$
|
61
|
|
|
$
|
6,954
|
|
|
$
|
7,015
|
|
Long-lived assets
|
$
|
5,786,063
|
|
|
$
|
286,135
|
|
|
$
|
6,072,198
|
|
2016
(1)
|
|
|
|
|
|
|
|
|
|||
Revenue from external customers
|
$
|
2,848,876
|
|
|
$
|
182,261
|
|
|
$
|
3,031,137
|
|
Interest expense (income)
|
$
|
162,341
|
|
|
$
|
(248
|
)
|
|
$
|
162,093
|
|
Depreciation and amortization
|
$
|
138,560
|
|
|
$
|
8,673
|
|
|
$
|
147,233
|
|
Amortization of intangibles
|
$
|
30,427
|
|
|
$
|
529
|
|
|
$
|
30,956
|
|
Amortization of cemetery property
|
$
|
61,449
|
|
|
$
|
5,296
|
|
|
$
|
66,745
|
|
Operating income
|
$
|
461,825
|
|
|
$
|
51,498
|
|
|
$
|
513,323
|
|
(Losses) gains on divestitures and impairment charges, net
|
$
|
(27,658
|
)
|
|
$
|
839
|
|
|
$
|
(26,819
|
)
|
(1)
|
The results for the years ended
December 31, 2017
and
2016
have not been adjusted for the impact of our adoption of
"Revenue from Contracts with Customers"
on January 1, 2018.
|
13.
|
Supplementary Information
|
|
Years Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
Cash and cash equivalents:
|
|
|
|
|
|
||
Cash
|
$
|
177,338
|
|
|
$
|
260,281
|
|
Commercial paper and temporary investments
|
21,512
|
|
|
69,758
|
|
||
|
$
|
198,850
|
|
|
$
|
330,039
|
|
Receivables, net:
|
|
|
|
|
|
||
Notes receivable
|
$
|
1,781
|
|
|
$
|
1,605
|
|
Atneed funeral receivables, net of allowances of
$1,412
and $1,845, respectively
|
39,709
|
|
|
44,536
|
|
||
Atneed cemetery receivables, net of allowances of
$166
and $245, respectively
|
15,277
|
|
|
16,556
|
|
||
Other
|
17,058
|
|
|
27,607
|
|
||
|
$
|
73,825
|
|
|
$
|
90,304
|
|
Other current assets:
|
|
|
|
|
|
||
Income tax receivable
|
$
|
8,333
|
|
|
$
|
8,576
|
|
Prepaid insurance
|
5,047
|
|
|
4,419
|
|
||
Restricted cash
(1)
|
7,007
|
|
|
8,625
|
|
||
Other
|
13,220
|
|
|
13,955
|
|
||
|
$
|
33,607
|
|
|
$
|
35,575
|
|
Cemetery property:
|
|
|
|
|
|
||
Undeveloped land
|
$
|
1,209,109
|
|
|
$
|
1,181,920
|
|
Developed lots, lawn crypts, mausoleum spaces, cremation niches, and cremation memorialization property
|
628,355
|
|
|
610,069
|
|
||
|
$
|
1,837,464
|
|
|
$
|
1,791,989
|
|
Property and equipment, net:
|
|
|
|
|
|
||
Land
|
$
|
631,679
|
|
|
$
|
605,735
|
|
Buildings and improvements
|
2,107,300
|
|
|
1,996,123
|
|
||
Operating equipment
|
609,658
|
|
|
557,278
|
|
||
Leasehold improvements
|
34,755
|
|
|
34,607
|
|
||
Capital leases
|
263,940
|
|
|
254,260
|
|
||
|
3,647,332
|
|
|
3,448,003
|
|
||
Less: Accumulated depreciation
|
(1,525,059
|
)
|
|
(1,430,695
|
)
|
||
Less: Accumulated amortization of capital leases
|
(144,909
|
)
|
|
(144,264
|
)
|
||
|
$
|
1,977,364
|
|
|
$
|
1,873,044
|
|
Deferred charges and other assets:
|
|
|
|
|
|
||
Intangible assets, net
|
$
|
433,830
|
|
|
$
|
374,099
|
|
Restricted cash
(1)
|
1,727
|
|
|
1,937
|
|
||
Deferred tax assets
|
673
|
|
|
873
|
|
||
Notes receivable, net of allowances of $10,814 and $10,946, respectively
|
8,651
|
|
|
9,624
|
|
||
Cash surrender value of insurance policies
|
145,981
|
|
|
139,494
|
|
||
Deferred incremental direct selling costs
|
282,283
|
|
|
—
|
|
||
Other
|
61,006
|
|
|
75,157
|
|
||
|
$
|
934,151
|
|
|
$
|
601,184
|
|
|
Years Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
Accounts payable and accrued liabilities:
|
|
|
|
|
|
||
Accounts payable
|
$
|
173,361
|
|
|
$
|
173,685
|
|
Accrued benefits
|
90,303
|
|
|
95,233
|
|
||
Accrued interest
|
25,976
|
|
|
30,415
|
|
||
Accrued property taxes
|
18,512
|
|
|
10,541
|
|
||
Self-insurance reserves
|
80,114
|
|
|
78,227
|
|
||
Bank overdrafts
|
16,221
|
|
|
27,243
|
|
||
Other accrued liabilities
|
75,281
|
|
|
73,828
|
|
||
|
$
|
479,768
|
|
|
$
|
489,172
|
|
Other liabilities:
|
|
|
|
|
|
||
Accrued benefit costs
|
$
|
21,532
|
|
|
$
|
25,416
|
|
Deferred compensation
|
126,891
|
|
|
120,782
|
|
||
Customer refund obligation reserve
|
48,000
|
|
|
51,767
|
|
||
Tax liability
|
1,873
|
|
|
111,000
|
|
||
Payable to perpetual care trust
|
88,784
|
|
|
83,015
|
|
||
Other
|
10,222
|
|
|
19,002
|
|
||
|
$
|
297,302
|
|
|
$
|
410,982
|
|
(1)
|
Restricted cash in both periods primarily consists of proceeds from divestitures deposited into escrow accounts under IRS code section 1031 and collateralized obligations under certain insurance policies.
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands)
|
||||||||||
Net change in capital expenditure accrual
|
$
|
(2,597
|
)
|
|
$
|
223
|
|
|
$
|
(1,435
|
)
|
Non-cash acquisition of capital leases
|
$
|
58,664
|
|
|
$
|
54,087
|
|
|
$
|
41,609
|
|
14.
|
Earnings Per Share
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands, except per share amounts)
|
||||||||||
Amounts attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|||
Net income — basic
|
$
|
447,208
|
|
|
$
|
546,663
|
|
|
$
|
177,038
|
|
After tax interest on convertible debt
|
—
|
|
|
52
|
|
|
43
|
|
|||
Net income — diluted
|
$
|
447,208
|
|
|
$
|
546,715
|
|
|
$
|
177,081
|
|
Weighted average shares:
|
|
|
|
|
|
|
|
|
|||
Weighted average shares — basic
|
182,447
|
|
|
187,630
|
|
|
193,086
|
|
|||
Stock options
|
4,339
|
|
|
4,396
|
|
|
2,823
|
|
|||
Restricted share units
|
186
|
|
|
99
|
|
|
12
|
|
|||
Convertible debt
|
—
|
|
|
121
|
|
|
121
|
|
|||
Weighted average shares — diluted
|
186,972
|
|
|
192,246
|
|
|
196,042
|
|
|||
Amounts attributable to common stockholders:
|
|
|
|
|
|
||||||
Net income per share:
|
|
|
|
|
|
|
|
|
|||
Basic
|
$
|
2.45
|
|
|
$
|
2.91
|
|
|
$
|
0.92
|
|
Diluted
|
$
|
2.39
|
|
|
$
|
2.84
|
|
|
$
|
0.90
|
|
|
Years Ended December 31,
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
|
(In thousands)
|
|||||||
Antidilutive options
|
1,035
|
|
|
911
|
|
|
982
|
|
15.
|
Acquisitions and Divestiture-Related Activities
|
•
|
the acquisition enhances our network footprint, enabling us to serve a number of new, complementary areas and
|
•
|
the acquisition of the preneed backlog of deferred revenues enhances our long-term stability.
|
Other current assets
|
$
|
3,321
|
|
Cemetery property
|
28,683
|
|
|
Property and equipment, net
|
25,717
|
|
|
Preneed receivables, net and trust investments
|
102,534
|
|
|
Finite-lived intangible assets
|
42,799
|
|
|
Indefinite-lived intangible assets
|
18,000
|
|
|
Deferred charges and other assets
|
1,717
|
|
|
Cemetery perpetual care trust investments
|
52,747
|
|
|
Goodwill
|
46,080
|
|
|
Total assets acquired
|
321,598
|
|
|
Current liabilities
|
4,591
|
|
|
Deferred revenue and deferred receipts held in trust
|
120,522
|
|
|
Deferred income taxes
|
11,730
|
|
|
Care trusts' corpus
|
52,747
|
|
|
Total liabilities assumed
|
189,590
|
|
|
Net assets acquired
|
$
|
132,008
|
|
|
Useful life
|
|
|
||||
|
Minimum
|
|
Maximum
|
|
Fair Value
|
||
|
(Years)
|
|
(In thousands)
|
||||
|
|
|
|
|
|
||
Other preneed customer relationships
|
10
|
|
20
|
|
$
|
19,775
|
|
Selling and management agreements
|
89
|
|
89
|
|
13,176
|
|
|
Operating leases
|
89
|
|
89
|
|
2,848
|
|
|
Tradenames
|
89
|
|
89
|
|
7,000
|
|
|
Tradenames
|
|
|
Indefinite
|
|
18,000
|
|
|
Total intangible assets
|
|
|
|
|
$
|
60,799
|
|
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
|
(unaudited)
|
||||||
Revenue
|
$
|
32,434
|
|
|
$
|
29,193
|
|
Net income
|
$
|
4,669
|
|
|
$
|
2,531
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands)
|
||||||||||
Gains on divestitures, net
|
$
|
20,340
|
|
|
$
|
29,053
|
|
|
$
|
7,829
|
|
Impairment losses
|
(4,407
|
)
|
|
(22,038
|
)
|
|
(34,648
|
)
|
|||
Gains (losses) on divestitures and impairment charges, net
|
$
|
15,933
|
|
|
$
|
7,015
|
|
|
$
|
(26,819
|
)
|
16.
|
Quarterly Financial Data (Unaudited)
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
||||||||
|
(In thousands, except per share amounts)
|
||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue
|
$
|
794,482
|
|
|
$
|
796,092
|
|
|
$
|
778,786
|
|
|
$
|
820,814
|
|
Costs and expenses
|
$
|
(598,720
|
)
|
|
$
|
(607,965
|
)
|
|
$
|
(612,616
|
)
|
|
$
|
(610,551
|
)
|
Operating profit
|
$
|
195,762
|
|
|
$
|
188,127
|
|
|
$
|
166,170
|
|
|
$
|
210,263
|
|
Operating income
|
$
|
163,692
|
|
|
$
|
161,954
|
|
|
$
|
132,303
|
|
|
$
|
172,710
|
|
Income before income taxes
(1)
|
$
|
110,369
|
|
|
$
|
119,315
|
|
|
$
|
86,036
|
|
|
$
|
126,012
|
|
(Provision for) benefit from income taxes
|
$
|
(28,321
|
)
|
|
$
|
(16,034
|
)
|
|
$
|
(17,043
|
)
|
|
$
|
67,224
|
|
Net income
|
$
|
82,048
|
|
|
$
|
103,281
|
|
|
$
|
68,993
|
|
|
$
|
193,236
|
|
Net income attributable to noncontrolling interests
|
$
|
(60
|
)
|
|
$
|
(42
|
)
|
|
$
|
(58
|
)
|
|
$
|
(190
|
)
|
Net income attributable to common stockholders
|
$
|
81,988
|
|
|
$
|
103,239
|
|
|
$
|
68,935
|
|
|
$
|
193,046
|
|
Net income attributable to common stockholders per share
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic — EPS
|
$
|
0.44
|
|
|
$
|
0.57
|
|
|
$
|
0.38
|
|
|
$
|
1.07
|
|
Diluted — EPS
|
$
|
0.43
|
|
|
$
|
0.55
|
|
|
$
|
0.37
|
|
|
$
|
1.04
|
|
2017
(3)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue
|
$
|
777,710
|
|
|
$
|
773,242
|
|
|
$
|
731,346
|
|
|
$
|
812,733
|
|
Costs and expenses
|
$
|
(600,471
|
)
|
|
$
|
(589,724
|
)
|
|
$
|
(581,570
|
)
|
|
$
|
(600,487
|
)
|
Operating profit
|
$
|
177,239
|
|
|
$
|
183,518
|
|
|
$
|
149,776
|
|
|
$
|
212,246
|
|
Operating income
|
$
|
139,891
|
|
|
$
|
143,902
|
|
|
$
|
109,351
|
|
|
$
|
177,999
|
|
Income before income taxes
(1)
|
$
|
98,526
|
|
|
$
|
101,518
|
|
|
$
|
66,578
|
|
|
$
|
133,636
|
|
Benefit from (provision for) income taxes
|
$
|
76,223
|
|
|
$
|
(32,956
|
)
|
|
$
|
(10,437
|
)
|
|
$
|
113,759
|
|
Net income
|
$
|
174,749
|
|
|
$
|
68,562
|
|
|
$
|
56,141
|
|
|
$
|
247,395
|
|
Net (income) loss attributable to noncontrolling interests
|
$
|
(47
|
)
|
|
$
|
(81
|
)
|
|
$
|
23
|
|
|
$
|
(79
|
)
|
Net income attributable to common stockholders
|
$
|
174,702
|
|
|
$
|
68,481
|
|
|
$
|
56,164
|
|
|
$
|
247,316
|
|
Net income attributable to common stockholders per share
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic — EPS
|
$
|
0.93
|
|
|
$
|
0.37
|
|
|
$
|
0.30
|
|
|
$
|
1.32
|
|
Diluted — EPS
|
$
|
0.91
|
|
|
$
|
0.36
|
|
|
$
|
0.29
|
|
|
$
|
1.29
|
|
(1)
|
Includes
Gains (losses) on divestitures and impairment charges, net
, as described in Note 15.
|
(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.
|
(3)
|
The results for the year ended
December 31, 2017
have not been adjusted for the impact of our adoption of
"Revenue from Contracts with Customers"
on January 1, 2018.
|
SERVICE CORPORATION INTERNATIONAL
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS
Three Years Ended December 31, 2018
|
||||||||||||||||
Description
|
|
Balance at
Beginning
of Period
|
|
Charged
(Credited) to
Costs and
Expenses
|
|
Charged
(Credited) to
Write-offs & Other
Accounts
|
|
Balance at
End of
Period
|
||||||||
|
|
|
||||||||||||||
Current Provision:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Allowance For Doubtful Accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Year Ended December 31, 2018
|
|
$
|
2,090
|
|
|
$
|
8,372
|
|
|
$
|
(8,884
|
)
|
|
$
|
1,578
|
|
Year Ended December 31, 2017
|
|
$
|
3,395
|
|
|
$
|
9,980
|
|
|
$
|
(11,285
|
)
|
|
$
|
2,090
|
|
Year Ended December 31, 2016
|
|
$
|
5,496
|
|
|
$
|
10,776
|
|
|
$
|
(12,877
|
)
|
|
$
|
3,395
|
|
Due After One Year:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Allowance For Doubtful Accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Year Ended December 31, 2018
|
|
$
|
10,946
|
|
|
$
|
—
|
|
|
$
|
(132
|
)
|
|
$
|
10,814
|
|
Year Ended December 31, 2017
|
|
$
|
11,334
|
|
|
$
|
—
|
|
|
$
|
(388
|
)
|
|
$
|
10,946
|
|
Year Ended December 31, 2016
|
|
$
|
11,334
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,334
|
|
Preneed Receivables, Net
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Asset Allowance For Cancellation:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Year Ended December 31, 2018
|
|
$
|
107,749
|
|
|
$
|
(69
|
)
|
|
$
|
(59,300
|
)
|
|
$
|
48,380
|
|
Year Ended December 31, 2017
|
|
$
|
104,740
|
|
|
$
|
1,105
|
|
|
$
|
1,904
|
|
|
$
|
107,749
|
|
Year Ended December 31, 2016
|
|
$
|
105,773
|
|
|
$
|
1,411
|
|
|
$
|
(2,444
|
)
|
|
$
|
104,740
|
|
Deferred Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue Allowance For Cancellation:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Year Ended December 31, 2018
|
|
$
|
(118,099
|
)
|
|
$
|
—
|
|
|
$
|
118,099
|
|
|
$
|
—
|
|
Year Ended December 31, 2017
|
|
$
|
(116,913
|
)
|
|
$
|
—
|
|
|
$
|
(1,186
|
)
|
|
$
|
(118,099
|
)
|
Year Ended December 31, 2016
|
|
$
|
(121,548
|
)
|
|
$
|
—
|
|
|
$
|
4,635
|
|
|
$
|
(116,913
|
)
|
Deferred Tax Valuation Allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Year Ended December 31, 2018
|
|
$
|
141,154
|
|
|
$
|
(20,219
|
)
|
|
$
|
(4
|
)
|
|
$
|
120,931
|
|
Year Ended December 31, 2017
|
|
$
|
132,500
|
|
|
$
|
8,035
|
|
|
$
|
619
|
|
|
$
|
141,154
|
|
Year Ended December 31, 2016
|
|
$
|
126,654
|
|
|
$
|
6,336
|
|
|
$
|
(490
|
)
|
|
$
|
132,500
|
|
(1)
|
Upon adoption of
"Revenue from Contracts with Customers"
on January 1, 2018, we reclassified amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts as a reduction in
Deferred revenue, net.
As a result of this reclassification, we eliminated the allowance for cancellation on these performance obligations.
|
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
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
|
|
8,917,943
|
|
|
$
|
23.40
|
|
|
8,287,804
|
|
Item 15.
|
Exhibits and Financial Statement Schedule
|
Exhibit Number
|
|
|
Description
|
|
|
—
|
|
||
|
—
|
|
||
|
—
|
|
|
|
3.
4
|
|
—
|
|
|
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
|
—
|
|
||
|
—
|
|
||
|
—
|
|
||
|
—
|
|
Item 16.
|
Form 10-K Summary
|
|
|
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 20, 2019
|
||
(Thomas L. Ryan)
|
|
|
|
|||
|
|
|
|
|
||
/s/ ERIC D. TANZBERGER*
|
|
Senior Vice President, Chief Financial Officer (Principal Financial Officer)
|
|
February 20, 2019
|
||
(Eric D. Tanzberger)
|
|
|
|
|||
|
|
|
|
|
||
/s/ TAMMY R. MOORE*
|
|
Vice President and Corporate Controller (Principal Accounting Officer)
|
|
February 20, 2019
|
||
(Tammy R. Moore)
|
|
|
|
|||
|
|
|
|
|
||
/s/ ANTHONY L. COELHO*
|
|
Lead Independent Director
|
|
February 20, 2019
|
||
(Anthony L. Coelho)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ ALAN R. BUCKWALTER, III*
|
|
Director
|
|
February 20, 2019
|
||
(Alan R. Buckwalter, III)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ JAKKI L. HAUSSLER*
|
|
Director
|
|
February 20, 2019
|
||
(Jakki L. Haussler)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ VICTOR L. LUND*
|
|
Director
|
|
February 20, 2019
|
||
(Victor L. Lund)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ JOHN W. MECOM, JR.*
|
|
Director
|
|
February 20, 2019
|
||
(John W. Mecom, Jr.)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ CLIFTON H. MORRIS, JR.*
|
|
Director
|
|
February 20, 2019
|
||
(Clifton H. Morris, Jr.)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ ELLEN OCHOA*
|
|
Director
|
|
February 20, 2019
|
||
(Ellen Ochoa)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ SARA MARTINEZ TUCKER*
|
|
Director
|
|
February 20, 2019
|
||
(Sara Martinez Tucker)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ W. BLAIR WALTRIP*
|
|
Director
|
|
February 20, 2019
|
||
(W. Blair Waltrip)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ MARCUS A. WATTS*
|
|
Director
|
|
February 20, 2019
|
||
(Marcus A. Watts)
|
|
|
|
|
||
|
|
|
|
|
||
|
|
|
|
|
||
*By
|
/s/ GREGORY T. SANGALIS
|
|
|
|
February 20, 2019
|
|
|
(Gregory T. Sangalis, as
Attorney-In-Fact for each of the Persons indicated) |
|
|
|
|
1.
|
ELECTION TO PROVIDE SPECIAL HARDSHIP DISTRIBUTIONS
|
(a)
|
Financial hardship distributions can only be made under this Amendment: (i) between August 23, 2017 and January 31, 2018 for individuals affected by Hurricane Harvey; and (ii) between September 4, 2017 and January 31, 2018 for individuals affected by Hurricane Irma. The Plan Administrator is not authorized under this amendment to make financial hardship distributions for any reason other than a financial need arising out of Hurricane Harvey or Hurricane Irma.
|
(b)
|
The financial need can be any financial need arising out of Hurricane Harvey and Hurricane Irma, including financial needs other than the types enumerated in Section 5.8 of the Plan.
|
(c)
|
The Plan Administrator may rely upon representations from the Participant as to the need for, and amount of, the distribution unless the Administrator has actual knowledge to the contrary.
|
(d)
|
The six-month suspension from making any 401(k) Elective Deferrals may be waived for Participants who take financial hardship distributions pursuant to this Amendment.
|
2.
|
AFFECTED PARTICIPANTS
|
(a)
|
Whose principal residence or principal place of employment was in a Hurricane Harvey Disaster Area on August 23, 2017 or whose lineal ascendant or descendant, dependent, or Spouse had a principal residence or place of employment in a Hurricane Harvey Disaster Area on August 23, 2017. A
"Hurricane Harvey
|
(b)
|
Whose principal residence or principal place of employment was in a Hurricane Irma Disaster Area on September 4, 2017 or whose lineal ascendant or descendant, dependent, or Spouse had a principal residence or place of employment in a Hurricane Irma Disaster Area on September 4, 2017. A
"Hurricane Irma Disaster Area"
means any county identified for individual assistance by the Federal Emergency Management Agency (FEMA) because of the devastation caused by Hurricane Irma.
|
1.
|
Section 2.1(a)(2) of the Plan is amended to read as follows:
|
2.
|
Section 2.1(b)(2) of the Plan is amended to read as follows:
|
3.
|
Section 2.1(c)(2) of the Plan is amended to read as follows:
|
4.
|
Section 3.2(e)(1) of the Plan is amended to read as follows:
|
(1)
|
Covered Employees.
Covered Employees will include all Participants in the Elective Deferral Component of the Plan who are entering the Elective Deferral Component of the Plan for the first time or are reentering this Component following rehire. However, Participants who fall between the ages of 18 and up to 21 and who have met the 2-month Period of Service requirement as of January 1, 2019, will not be defaulted into the EACA should they not have filed a Salary Deferral Agreement with the Administrator.
|
5.
|
In all other respects, the terms of this Plan are hereby ratified and confirmed.
|
1.
|
Grant of Award
.
|
A.
|
Definitions
. For purposes of this Award, the following definitions will control:
|
•
|
“Annualized Return on Equity” means the product of (i) the sum of the Return on Equity for each fiscal year during the Performance Cycle, divided by (ii) three.
|
•
|
“Award” is a grant of Units as approved by the Compensation Committee.
|
•
|
“Comparator Group” is defined as the publicly traded U.S. companies which are included in the reference group as documented in the 2018 Compensation Committee’s records and which are in existence at the end of the Performance Cycle.
|
•
|
“Compensation Committee” means the Compensation Committee of the Board of Directors of Service Corporation International.
|
•
|
“National Exchange” is defined as the New York Stock Exchange (NYSE) or the National Association of Stock Dealers and Quotes (NASDAQ).
|
•
|
“Plan Administrator” is Compensation Committee, which may delegate certain elements of administrative responsibility to the Company’s CEO or appropriate members of his staff. Any performance goals, performance standards and award determinations must be approved by the Compensation Committee.
|
•
|
“Performance Cycle” is defined as the three-year period beginning December 31, 2017 and ending December 31, 2020.
|
•
|
“Performance Settlement Factor” is the applicable percentage set forth in Section B below, which shall be applied to the number of vested units based on the Company’s relative TSR ranking within the Comparator Group, as interpolated.
|
•
|
“Return on Equity” shall be calculated for each fiscal year during the Performance Cycle by dividing (i) the Company’s consolidated net income from continuing operations of the Company, as determined under U.S. Generally Accepted Accounting Principles, for the fiscal year, by (ii) [the average of the beginning and ending stockholders equity for such fiscal year.
|
•
|
“Total Shareholder Return” (TSR) is defined as the rate of return reflecting stock price appreciation plus reinvestment of dividends over the Performance Cycle. Specifically, TSR will be calculated using the following provisions: $100 invested in SCI stock on the first day of the Performance Cycle, with dividends reinvested, compared to $100 invested in each of the peer companies in the Comparator Group, with dividend reinvestment during the same period.
|
•
|
“Unit” is a performance unit which shall have a value equal to the closing price of a share of the Company’s common stock.
|
B.
|
Performance Unit Awards Settlement Criteria
:
|
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.
|
•
|
As provided in Section 8(a) of the Agreement, in the event SCI’s TSR is negative at the end of the Performance Cycle, no payment hereunder will exceed the Target in the schedule above.
|
•
|
As provided in Section 8(c) of the Agreement, in the event SCI’s Annualized ROE for the Performance Cycle is less than fifteen percent (15%), as calculated at the end of the Performance Cycle, the amount payable in settlement of the Units shall be reduced by twenty-five percent (25%).
|
•
|
The Compensation Committee shall have the reasonable discretion to interpret or construe ambiguous, unclear or implied terms applicable to this Agreement, and to make any findings of fact necessary to make a calculation or determination hereunder.
|
•
|
A decision made in good faith by the Compensation Committee shall govern and be binding in the event of any dispute regarding a method of calculation of performance or a determination of vesting or forfeiture in connection with the Award or this Agreement.
|
SCI Capital Corporation (DE Corp)
|
|||||||||||
SCI Capital Holdings, Inc. (DE Corp)
|
|||||||||||
SCI Direct, Inc. (FL Corp) California subsidiaries
|
|||||||||||
Neptune Society of America, Inc.
|
100
|
%
|
|||||||||
Neptune Management Corp.
|
100
|
%
|
|||||||||
Trident Society, Inc.
|
100
|
%
|
|||||||||
Wilson Financial Group, Inc. (DE Corp)
|
|||||||||||
Wilson Holdings, Inc. (TX Corp) California subsidiaries
|
|||||||||||
Cooley & Riolo Mortuary, Inc.
|
100
|
%
|
|||||||||
Thompson Funeral Home, Inc.
|
100
|
%
|
|||||||||
WFG-Fuller Funerals, Inc.
|
100
|
%
|
|||||||||
Wilson-Bannon Mortuary, Inc.
|
100
|
%
|
|||||||||
Camellia Memorial Lawn, Inc.
|
100
|
%
|
|||||||||
Alderwoods Group, LLC (DE LLC) California subsidiaries
|
|||||||||||
Alderwoods Group (California), Inc.
|
100
|
%
|
|||||||||
Alderwoods (Texas), LLC.
|
100
|
%
|
|||||||||
Rose Hills Holdings Corp. (DE Corp)
|
|||||||||||
Rose Hills Company (DE Corp) California subsidiary
|
|||||||||||
RH Mortuary Corporation
|
100
|
%
|
|||||||||
RH Cemetery Corp. (DE Corp) California subsidiary
|
|||||||||||
Workman Mill Investment Company
|
100
|
%
|
|||||||||
DSP General Partner II, Inc.
|
100
|
%
|
|||||||||
S & H Properties and Enterprises, Inc. (WA Corp) California subsidiaries
|
|||||||||||
Universal Memorial Centers V, Inc.
|
100
|
%
|
|||||||||
Stewart Enterprises, Inc. (LA Corp) California Subsidiary
|
|||||||||||
S.E. Acquisition of California, Inc.
|
100
|
%
|
|||||||||
S.E. Combined Services of California, Inc.
|
100
|
%
|
|||||||||
S.E. Funeral Homes of California, Inc.
|
100
|
%
|
|||||||||
Simplicity Plan of California, Inc.
|
100
|
%
|
|||||||||
Stewart Pre-Need Services, Inc.
|
100
|
%
|
|||||||||
|
|||||||||||
COLORADO
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Colorado subsidiary
|
|||||||||||
SCI Colorado Funeral Services, LLC
|
100%
|
|
|||||||||
Allnut Funeral Homes, Inc.
|
100%
|
|
|||||||||
Allnut Funeral Service, Inc.
|
100%
|
|
|||||||||
Resthaven Colorado, LLC
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Colorado subsidiary
|
|||||||||||
Alderwoods (Colorado), Inc.
|
100%
|
|
|||||||||
|
|||||||||||
CONNECTICUT
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Connecticut subsidiary
|
|||||||||||
SCI Connecticut Funeral Services, LLC
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Connecticut subsidiary
|
|||||||||||
Alderwoods (Connecticut), Inc.
|
51.8%
|
|
|||||||||
Alderwoods (New York), LLC (NY LLC) Connecticut subsidiary
|
Alderwoods (Connecticut), Inc.
|
48.2%
|
|
|||||||||
|
|||||||||||
DELAWARE
|
|||||||||||
Christian Funeral Services, Inc.
|
100%
|
|
|||||||||
SCI Funeral Services, LLC (Iowa LLC)
|
|||||||||||
ECI Services of Maine, Inc.
|
100%
|
|
|||||||||
ECI Services of New Hampshire, Inc.
|
100%
|
|
|||||||||
Gracelawn Memorial Park, Inc
|
100%
|
|
|||||||||
LHT Consulting Group, LLC
|
100%
|
|
|||||||||
Maine Cremation Care, LLC
|
100%
|
|
|||||||||
MCH Wilson, Inc.
|
100%
|
|
|||||||||
Memorial Guardian Plans, Inc.
|
100%
|
|
|||||||||
New England Cremation Services, LLC
|
100%
|
|
|||||||||
SCI California Funeral Services, Inc. (CA Corp) Delaware subsidiaries
|
|||||||||||
California Cemetery and Funeral Services, LLC
|
5%
|
|
|||||||||
ECI Capital, LLC
|
100%
|
|
|||||||||
California Cemetery and Funeral Services, LLC
|
95%
|
|
|||||||||
SCI Georgia Funeral Services, LLC
|
100%
|
|
|||||||||
SCI Services (Alabama), LLC
|
100%
|
|
|||||||||
SCI Indiana Funeral Services, Inc.
|
100%
|
|
|||||||||
SCI Iowa Funeral Services, Inc. (IA Corp) Delaware subsidiary
|
|||||||||||
SCI Iowa Finance Company
|
100%
|
|
|||||||||
SCI Maryland Funeral Services, Inc. (MD Corp) Delaware subsidiary
|
|||||||||||
ECI Cemetery Services of Maryland, LLC
|
100%
|
|
|||||||||
SCI Pennsylvania Funeral Services, Inc. (PA Corp) Delaware subsidiary
|
|||||||||||
Saul-Gabauer Funeral Home, Inc.
|
100%
|
|
|||||||||
SCI Texas Funeral Services, LLC
|
100%
|
|
|||||||||
CemCare, Inc.
|
100%
|
|
|||||||||
PSI Funding, Inc.
|
100%
|
|
|||||||||
SCI Virginia Funeral Services, LLC (VA LLC) Delaware subsidiary
|
|||||||||||
SCI Loan Services, LLC
|
100%
|
|
|||||||||
Trust Advisors, Inc.
|
100%
|
|
|||||||||
Salvatore Air Transportation Corp.
|
100%
|
|
|||||||||
OFTC, Inc.
|
100%
|
|
|||||||||
SCI Financial Services, Inc.
|
100%
|
|
|||||||||
Making Everlasting Memories, L.L.C.
|
100%
|
|
|||||||||
SCI Investment Services, Inc.
|
100%
|
|
|||||||||
SCI International, LLC
|
100%
|
|
|||||||||
SCI Cerberus, Inc.
|
99.3%
|
|
|||||||||
SCI Parkway, LLC
|
100%
|
|
|||||||||
Keystone America, Inc.
|
100%
|
|
|||||||||
Keystone Indiana, Inc.
|
100%
|
|
|||||||||
Keystone Kentucky, Inc.
|
99%
|
|
|||||||||
Keystone Michigan, Inc.
|
100%
|
|
|||||||||
Healy-Hahn Funeral Properties, Inc.
|
100%
|
|
|||||||||
SCI Cerberus, Inc.
|
.07%
|
|
Keystone Advance Planning, Inc.
|
100%
|
|
|||||||||
SCI Shared Resources, LLC
|
100%
|
|
|||||||||
SCI Shared Services, Inc.
|
100%
|
|
|||||||||
SCI Special, LLC
|
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 Capital Corporation
|
100%
|
|
|||||||||
CMSD, LLC
|
100%
|
|
|||||||||
FMSD, LLC
|
100%
|
|
|||||||||
SCI Capital Holdings, Inc.
|
100%
|
|
|||||||||
Wilson Financial Group, Inc.
|
100%
|
|
|||||||||
Wilson-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
|
99%
|
|
|||||||||
Alderwoods Group, LLC
|
100%
|
|
|||||||||
H. P. Brandt Funeral Home, Inc.
|
100%
|
|
|||||||||
Osiris Holding, LLC
|
100%
|
|
|||||||||
Rose Hills Holdings Corp.
|
100%
|
|
|||||||||
Rose Hills Company
|
100%
|
|
|||||||||
RH Cemetery Corp.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp) Delaware subsidiaries
|
|||||||||||
Alderwoods (Mississippi), LLC
|
100%
|
|
|||||||||
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), LLC (MN LLC) Florida subsidiary
|
|||||||||||
SCI Funeral Services of Florida, LLC
|
1%
|
|
|||||||||
Osiris Holding LLC (DE LLC) Florida subsidiary
|
|||||||||||
Osiris Holding of Florida, Inc.
|
100%
|
|
|||||||||
SCI Special, LLC (DE LLC)
|
|||||||||||
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%
|
|
|||||||||
Cemetery Management, Inc. (FL Corp) Georgia subsidiary
|
|||||||||||
Cheatham Hill Memorial Park, Inc.
|
100%
|
|
|||||||||
S.E. Mid-Atlantic, Inc. (Maryland LLC) Georgia subsidiary
|
|||||||||||
Haisten Funeral Home of Henry County, Inc.
|
100%
|
|
|||||||||
S.E. South-Central, LLC (LA LLC) Georgia subsidiary
|
|||||||||||
Rose Haven Funeral Home & Cemetery, Inc.
|
100%
|
|
|||||||||
|
|||||||||||
HAWAII
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Hawaii subsidiaries
|
|||||||||||
Hawaiian Memorial Life Plan, Ltd.
|
100%
|
|
|||||||||
Ballard Mortuary, Inc.
|
100%
|
|
|||||||||
Ballard & Son, Inc.
|
100%
|
|
|||||||||
Family Funeral Services, LLC
|
100%
|
|
|||||||||
|
IDAHO
|
|||||||||||
Alderwoods Group, LLC (DE LLC) Idaho subsidiary
|
|||||||||||
Alderwoods (Idaho), Inc.
|
100%
|
|
|||||||||
|
|||||||||||
ILLINOIS
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Illinois subsidiary
|
|||||||||||
SCI Illinois Services, LLC
|
100%
|
|
|||||||||
Lake View Memorial Gardens, Inc.
|
100%
|
|
|||||||||
SCI Funeral Services of Florida, LLC (FL LLC), Illinois subsidiary
|
|||||||||||
Alderwoods (Chicago North), Inc.
|
56%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Illinois subsidiaries
|
|||||||||||
Alderwoods (Illinois), LLC
|
100%
|
|
|||||||||
Alderwoods (Chicago Central), Inc.
|
71%
|
|
|||||||||
Woodlawn Memorial Park, Inc.
|
100%
|
|
|||||||||
Chicago Cemetery Corporation
|
100%
|
|
|||||||||
Mount Auburn Memorial Park, Inc.
|
100%
|
|
|||||||||
Alderwoods (Chicago North), Inc.
|
1%
|
|
|||||||||
Alderwoods (Chicago North), Inc.
|
43%
|
|
|||||||||
Osiris Holding, LLC (DE LLC) Illinois subsidiary
|
|||||||||||
Alderwoods (Chicago Central), Inc.
|
29%
|
|
|||||||||
Elmwood Acquisition Corporation
|
100%
|
|
|||||||||
Oak Woods Cemetery Association
|
100%
|
|
|||||||||
Pineview Memorial Park, Inc.
|
100%
|
|
|||||||||
Ridgewood Cemetery Company, Inc.
|
100%
|
|
|||||||||
Ruzich Funeral Home, Inc.
|
100%
|
|
|||||||||
Woodlawn Cemetery of Chicago, Inc.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp)
|
|||||||||||
S.E. South-Central, LLC (LA LLC)
|
|||||||||||
S.E. Funeral Homes of Illinois, Inc.
|
100%
|
|
|||||||||
|
|||||||||||
INDIANA
|
|||||||||||
Alderwoods Group, LLC (DE LLC) Indiana subsidiaries
|
|||||||||||
Advance Planning of America, Inc.
|
100%
|
|
|||||||||
Alderwoods (Indiana), Inc.
|
88.5%
|
|
|||||||||
Alderwoods (Tennessee), LLC (TN LLC) Indiana subsidiary
|
|||||||||||
Alderwoods (Indiana), Inc.
|
11.5%
|
|
|||||||||
SCI Special, LLC (DE LLC)
|
|||||||||||
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%
|
|
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, LLC
|
100%
|
|
|||||||||
Cedar Hill Cemetery Company, LLC
|
100%
|
|
|||||||||
Crest Lawn Memorial Gardens, LLC
|
100%
|
|
|||||||||
Fort Lincoln Cemetery, LLC
|
100%
|
|
|||||||||
Fort Lincoln Funeral Home, LLC
|
100%
|
|
|||||||||
Hillcrest Memorial Cemetery, Inc.
|
100%
|
|
|||||||||
Hines-Rinaldi Funeral Home, LLC
|
100%
|
|
|||||||||
John M. Taylor Funeral Home, LLC
|
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), LLC
|
100%
|
|
|||||||||
SCI International, LLC (DE LLC)
|
|||||||||||
Keystone America, Inc. (DE Corp) Mass. subsidiary
|
I. J. Morris, LLC
|
100%
|
|
|||||||||
New York Funeral Chapels, LLC
|
100%
|
|
|||||||||
New York Marker, LLC
|
100%
|
|
|||||||||
Thomas M. Quinn & Sons, LLC
|
100%
|
|
|||||||||
|
|||||||||||
NORTH CAROLINA
|
|||||||||||
SCI Special, LLC (DE LLC)
|
|||||||||||
SCI Capital Corporation (DE Corp)
|
|||||||||||
SCI Capital Holdings, Inc. (DE Corp)
|
|||||||||||
Wilson Financial Group, Inc. (DE Corp)
|
|||||||||||
Wilson Holdings, Inc. (TX Corp) N. Carolina subsidiary
|
|||||||||||
Hamilton Funeral Chapel, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) North Carolina subsidiaries
|
|||||||||||
Alderwoods (Georgia), LLC (GA LLC) North Carolina subsidiary
|
|||||||||||
Reeves, Inc.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp) North Carolina subsidiaries
|
|
||||||||||
Alderwoods (North Carolina), LLC
|
100%
|
|
|||||||||
Westminster Gardens, Inc.
|
100%
|
|
|||||||||
Carothers Holding Company, LLC
|
100%
|
|
|||||||||
MFH, L.L.C.
|
100%
|
|
|||||||||
Lineberry Group, LLC
|
100%
|
|
|||||||||
Montlawn Memorial Park, Inc.
|
100%
|
|
|||||||||
SCI North Carolina Funeral Service, LLC
|
100%
|
|
|||||||||
S.E. Mid-Atlantic, Inc. (MD LLC) North Carolina subsidiaries
|
|||||||||||
Catawba Memorial Park, LLC
|
100%
|
|
|||||||||
Garrett-Hillcrest, LLC
|
100%
|
|
|||||||||
McLaurin’s Funeral Home, LLC
|
100%
|
|
|||||||||
S.E. Cemeteries of North Carolina, LLC
|
100%
|
|
|||||||||
S.E. Funeral Homes of North Carolina, Inc.
|
100%
|
|
|||||||||
|
|||||||||||
OHIO
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Ohio subsidiaries
|
|||||||||||
SCI Ohio Funeral Services, Inc.
|
100%
|
|
|||||||||
The Knollwood Cemetery Company
|
100%
|
|
|||||||||
SCI Special, LLC (DE LLC)
|
|||||||||||
SCI Capital Corporation (DE Corp)
|
|||||||||||
SCI Capital Holdings, Inc. (DE Corp)
|
|||||||||||
Wilson Financial Group, Inc. (DE Corp)
|
|||||||||||
Wilson Holdings, Inc. (TX Corp) Ohio subsidiary
|
|||||||||||
Dale Funeral Home, Inc.
|
90%
|
|
|||||||||
WFG-Cummings and Davis, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Ohio subsidiaries
|
|||||||||||
Alderwoods (Ohio) Cemetery Management, Inc.
|
100%
|
|
|||||||||
Alderwoods (Ohio) Funeral Home, Inc.
|
100%
|
|
|||||||||
Bennett-Emmert-Szakovits Funeral Home, Inc.
|
100%
|
|
|||||||||
|
Oak Woods Management Company
|
100%
|
|
|||||||||
Zimmerman- Auer Funeral Home, Inc.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp)
|
|||||||||||
S.E. Mid-Atlantic, LLC (MD LLC) Pennsylvania subsidiaries
|
|||||||||||
George Washington Memorial Park, Inc.
|
100%
|
|
|||||||||
S.E. Acquisition of Pennsylvania, Inc.
|
100%
|
|
|||||||||
Sunset Memorial Park Company, LLC
|
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)
|
|||||||||||
Alderwoods (Georgia), Inc. (GA Corp) South Carolina subsidiary
|
|||||||||||
Graceland Cemetery Development Co.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp)
|
|||||||||||
Alderwoods (South Carolina), Inc.
|
100%
|
|
|||||||||
S.E. Mid-Atlantic, LLC (MD LLC) 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, LLC (DE LLC)
|
|||||||||||
SCI Capital Corporation (DE Corp)
|
|||||||||||
SCI Capital Holdings, Inc. (DE Corp)
|
|||||||||||
Wilson Financial Group, Inc. (DE Corp) Tennessee subsidiary
|
|||||||||||
Southern Funeral Home, Inc.
|
100%
|
|
|||||||||
Wilson-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, LLC (MD LLC) Tennessee subsidiaries
|
|||||||||||
Monte Vista Burial Park, LLC
|
100%
|
|
|||||||||
S.E. Combined Services of Tennessee, LLC
|
100%
|
|
S.E. South-Central, LLC (LA LLC) Tennessee subsidiary
|
|||||||||||
S.E. Funeral Homes of Tennessee, Inc.
|
100%
|
|
|||||||||
The Nashville Historic Cemetery Association, LLC
|
100%
|
|
|||||||||
|
|||||||||||
TEXAS
|
|||||||||||
Big Bend Insurance Company, Inc.
|
100%
|
|
|||||||||
SCI Funeral Services, LLC (Iowa LLC) Texas subsidiaries
|
|||||||||||
TMJ Land, Inc.
|
100%
|
|
|||||||||
SCI Texas Funeral Services, LLC (DE LLC) 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%
|
|
|||||||||
SCI Special, LLC (DE LLC)
|
|||||||||||
SCI Capital Corporation (DE Corp) Texas subsidiary
|
|||||||||||
SCI Capital Holdings, Inc. (DE Corp)
|
|||||||||||
Wilson Financial Group, Inc. (DE Corp) Texas subsidiary
|
|||||||||||
Wilson Holdings, Inc.
|
100%
|
|
|||||||||
Carl Barnes Funeral Home, Inc.
|
100%
|
|
|||||||||
Cedar Crest Funeral Home, Inc.
|
100%
|
|
|||||||||
Fuller-Sheffield Funeral Services, Inc.
|
100%
|
|
|||||||||
Lincoln Funeral Home, Inc.
|
100%
|
|
|||||||||
Mainland Funeral Home, Inc.
|
100%
|
|
|||||||||
Morris-Bates Funeral Home, Inc.
|
100%
|
|
|||||||||
Paradise Funeral Home, Inc.
|
100%
|
|
|||||||||
Paradise Investment Corporation
|
100%
|
|
|||||||||
Paradise Cemetery South, Inc.
|
100%
|
|
|||||||||
Warford-Walker Mortuary, Inc.
|
100%
|
|
|||||||||
WFG-Cristo Rey Funeral Home, Inc.
|
100%
|
|
|||||||||
WFG-Lockwood Funeral Home, Inc.
|
100%
|
|
|||||||||
WFG-Nat Clark, Inc.
|
100%
|
|
|||||||||
WFG-Gregory Spencer Funeral Home, Inc.
|
100%
|
|
|||||||||
Wilson-Lincoln Cemetery, Inc.
|
100%
|
|
|||||||||
Carver Memorial Park, Inc.
|
100%
|
|
|||||||||
Lincoln Memorial Park
|
100%
|
|
|||||||||
SCI Administrative Services, LLC (DE LLC)
|
|||||||||||
SCI Management L.P. (DE LP) -
Limited Partner of
|
|||||||||||
SCI Eastern Market Support Center, L.P.
|
99%
|
|
|||||||||
SCI Houston Market Support Center, L.P.
|
99%
|
|
|||||||||
SCI Management L.P. (DE LP)
|
|||||||||||
SCI Western Market Support Center, LLC (CA LLC) –
General Partner of
|
|||||||||||
SCI Eastern Market Support Center, L.P.
|
1%
|
|
|||||||||
SCI Houston Market Support Center, L.P.
|
1%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Texas subsidiaries
|
|||||||||||
Dunwood Cemetery Service Company
|
80%
|
|
Alderwoods (Washington), LLC
|
100%
|
|
|||||||||
S & H Properties and Enterprises, Inc.
|
100%
|
|
|||||||||
Vancouver Funeral Chapel, Inc.
|
100%
|
|
|||||||||
Evergreen Funeral Home and Cemetery, Inc.
|
100%
|
|
|||||||||
Green Service Corporation
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp)
|
|||||||||||
S.E. Acquisition of California, Inc. (CA Corp) Washington subsidiaries
|
|||||||||||
Cremation Society Northwest, Inc.
|
100%
|
|
|||||||||
E.R. Butterworth & Sons
|
100%
|
|
|||||||||
|
|||||||||||
WEST VIRGINIA
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) West Virginia subsidiaries
|
|||||||||||
SCI West Virginia Funeral Services, Inc.
|
100%
|
|
|||||||||
Rosedale Cemetery Company
|
100%
|
|
|||||||||
Rosedale Funeral Chapel, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) West Virginia subsidiary
|
|||||||||||
Alderwoods (West Virginia), Inc.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp)
|
|||||||||||
S.E. Mid-Atlantic, LLC. (MD LLC) WV subsidiaries -
partner of
|
|||||||||||
Kanawha Plaza Partnership
|
60%
|
|
|||||||||
Bartlett-Burdette-Cox Funeral Home, Inc.
|
100%
|
|
|||||||||
Casdorph & Curry Funeral Home, Inc.
|
100%
|
|
|||||||||
Eastern Cemetery Associates, Inc.
|
100%
|
|
|||||||||
JCKC, Inc.
|
100%
|
|
|||||||||
LOI Charleston, Inc.
|
100%
|
|
|||||||||
National Exchange Trust, Ltd.
|
100%
|
|
|||||||||
National Funeral Services, Incorporated
|
100%
|
|
|||||||||
S.E. Acquisition of Malden, West Virginia, Inc.
|
100%
|
|
|||||||||
S.E. Cemeteries of West Virginia, LLC (VA LLC) -
partner of
|
|
||||||||||
Kanawha Plaza Partnership
|
30%
|
|
|||||||||
S.E. Cemeteries of West Virginia, Inc. -
partner of
|
100%
|
|
|||||||||
Kanawha Plaza Partnership
|
10%
|
|
|||||||||
S.E. Funeral Homes of West Virginia, Inc.
|
100%
|
|
|||||||||
Wilson Funeral Home, Inc.
|
100%
|
|
|||||||||
|
|||||||||||
WISCONSIN
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Wisconsin subsidiary
|
|||||||||||
SCI Wisconsin Funeral Services, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Wisconsin subsidiaries
|
|||||||||||
Alderwoods (Wisconsin), Inc.
|
99%
|
|
|||||||||
Osiris Holding, LLC (DE LLC) Wisconsin subsidiary
|
|||||||||||
Alderwoods (Wisconsin), Inc.
|
1%
|
|
|||||||||
Northern Land Company, Inc.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp)
|
|||||||||||
S.E. South-Central, LLC (LA LLC) Wisconsin subsidiary
|
|||||||||||
S.E. Cemeteries of Wisconsin, 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 (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 (Principal Financial Officer) |