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☒
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended
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DECEMBER 31, 2019
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OR
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||
☐
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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
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Houston
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Texas
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77019
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(Address of principal executive offices)
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(Zip code)
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Title of Each Class
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Trading Symbol (s)
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Name of Each Exchange on Which Registered
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Common Stock ($1 par value)
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SCI
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New York Stock Exchange
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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
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Yes
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þ
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No
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¨
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Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
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Yes
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¨
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No
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þ
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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Yes
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þ
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No
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¨
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Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
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Yes
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þ
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No
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¨
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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¨
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Indicate by check mark whether the registrant is a shell company (as defined in 12b-2 of the act).
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Yes
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☐
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No
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þ
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Page
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Country, State/Territory/Province
|
|
Number of Funeral Service Locations
|
|
|
Number of Cemeteries
|
|
|
Total
|
|
United States
|
|
|
|
|
|
|
|
|
|
Alabama
|
|
34
|
|
|
13
|
|
|
47
|
|
Arizona
|
|
32
|
|
|
11
|
|
|
43
|
|
Arkansas
|
|
12
|
|
|
3
|
|
|
15
|
|
California
|
|
156
|
|
|
38
|
|
|
194
|
|
Colorado
|
|
31
|
|
|
11
|
|
|
42
|
|
Connecticut
|
|
21
|
|
|
—
|
|
|
21
|
|
Delaware
|
|
—
|
|
|
1
|
|
|
1
|
|
District of Columbia
|
|
1
|
|
|
—
|
|
|
1
|
|
Florida
|
|
136
|
|
|
61
|
|
|
197
|
|
Georgia
|
|
32
|
|
|
18
|
|
|
50
|
|
Hawaii
|
|
8
|
|
|
3
|
|
|
11
|
|
Idaho
|
|
1
|
|
|
—
|
|
|
1
|
|
Illinois
|
|
38
|
|
|
24
|
|
|
62
|
|
Indiana
|
|
51
|
|
|
14
|
|
|
65
|
|
Iowa
|
|
5
|
|
|
2
|
|
|
7
|
|
Kansas
|
|
8
|
|
|
5
|
|
|
13
|
|
Kentucky
|
|
11
|
|
|
5
|
|
|
16
|
|
Country, State/Territory/Province
|
|
Number of Funeral Service Locations
|
|
|
Number of Cemeteries
|
|
|
Total
|
|
Louisiana
|
|
29
|
|
|
11
|
|
|
40
|
|
Maine
|
|
11
|
|
|
—
|
|
|
11
|
|
Maryland
|
|
16
|
|
|
13
|
|
|
29
|
|
Massachusetts
|
|
27
|
|
|
—
|
|
|
27
|
|
Michigan
|
|
35
|
|
|
—
|
|
|
35
|
|
Minnesota
|
|
9
|
|
|
2
|
|
|
11
|
|
Mississippi
|
|
12
|
|
|
3
|
|
|
15
|
|
Missouri
|
|
25
|
|
|
10
|
|
|
35
|
|
Nebraska
|
|
9
|
|
|
2
|
|
|
11
|
|
Nevada
|
|
15
|
|
|
6
|
|
|
21
|
|
New Hampshire
|
|
6
|
|
|
—
|
|
|
6
|
|
New Jersey
|
|
24
|
|
|
—
|
|
|
24
|
|
New Mexico
|
|
1
|
|
|
—
|
|
|
1
|
|
New York
|
|
59
|
|
|
—
|
|
|
59
|
|
North Carolina
|
|
53
|
|
|
17
|
|
|
70
|
|
Ohio
|
|
32
|
|
|
15
|
|
|
47
|
|
Oklahoma
|
|
13
|
|
|
7
|
|
|
20
|
|
Oregon
|
|
14
|
|
|
4
|
|
|
18
|
|
Pennsylvania
|
|
23
|
|
|
16
|
|
|
39
|
|
Puerto Rico
|
|
6
|
|
|
9
|
|
|
15
|
|
Rhode Island
|
|
4
|
|
|
—
|
|
|
4
|
|
South Carolina
|
|
12
|
|
|
9
|
|
|
21
|
|
Tennessee
|
|
40
|
|
|
18
|
|
|
58
|
|
Texas
|
|
170
|
|
|
62
|
|
|
232
|
|
Utah
|
|
4
|
|
|
3
|
|
|
7
|
|
Virginia
|
|
36
|
|
|
24
|
|
|
60
|
|
Washington
|
|
37
|
|
|
15
|
|
|
52
|
|
West Virginia
|
|
7
|
|
|
8
|
|
|
15
|
|
Wisconsin
|
|
—
|
|
|
7
|
|
|
7
|
|
Canada
|
|
|
|
|
|
|
|
|
|
Alberta
|
|
10
|
|
|
—
|
|
|
10
|
|
British Columbia
|
|
36
|
|
|
9
|
|
|
45
|
|
Manitoba
|
|
4
|
|
|
3
|
|
|
7
|
|
New Brunswick
|
|
5
|
|
|
—
|
|
|
5
|
|
Nova Scotia
|
|
12
|
|
|
—
|
|
|
12
|
|
Ontario
|
|
40
|
|
|
—
|
|
|
40
|
|
Quebec
|
|
43
|
|
|
—
|
|
|
43
|
|
Saskatchewan
|
|
15
|
|
|
—
|
|
|
15
|
|
Total
|
|
1,471
|
|
|
482
|
|
|
1,953
|
|
|
Years Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Preneed funeral merchandise and service trust funds
|
20.0
|
%
|
|
(4.9
|
)%
|
|
16.1
|
%
|
Preneed cemetery merchandise and service trust funds
|
20.5
|
%
|
|
(5.2
|
)%
|
|
16.8
|
%
|
Cemetery perpetual care trust funds
|
17.0
|
%
|
|
(3.0
|
)%
|
|
9.5
|
%
|
•
|
Incur additional indebtedness (including guarantee obligations);
|
•
|
Create liens on assets;
|
•
|
Engage in certain transactions with affiliates;
|
•
|
Enter into sale-leaseback transactions;
|
•
|
Engage in mergers, liquidations, and dissolutions;
|
•
|
Sell assets;
|
•
|
Pay dividends, distributions, and other payments in respect of our capital stock;
|
•
|
Purchase our capital stock in the open market;
|
•
|
Make investments, loans, or advances;
|
•
|
Repay indebtedness or amend the agreements relating thereto;
|
•
|
Create restrictions on our ability to receive distributions from subsidiaries; and
|
•
|
Change our lines of business.
|
•
|
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.
|
•
|
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.
|
•
|
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.
|
•
|
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.
|
•
|
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.
|
•
|
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.
|
Officer Name
|
|
Age
|
|
Position
|
|
Year First
Became Officer |
|
Thomas L. Ryan
|
|
54
|
|
|
Chairman of the Board, Chief Executive Officer and President
|
|
1999
|
Sumner J. Waring, III
|
|
51
|
|
|
Senior Vice President, Chief Operating Officer
|
|
2002
|
Eric D. Tanzberger
|
|
51
|
|
|
Senior Vice President, Chief Financial Officer
|
|
2000
|
Gregory T. Sangalis
|
|
64
|
|
|
Senior Vice President, General Counsel and Secretary
|
|
2007
|
Elisabeth G. Nash
|
|
58
|
|
|
Senior Vice President, Operations Services
|
|
2004
|
John H. Faulk
|
|
44
|
|
|
Senior Vice President, Revenue and Business Development
|
|
2010
|
Steven A. Tidwell
|
|
58
|
|
|
Senior Vice President, Sales and Marketing
|
|
2010
|
Tammy R. Moore
|
|
52
|
|
|
Vice President and Corporate Controller
|
|
2010
|
|
Period
|
|
Total Number of
Shares Purchased |
|
|
Average Price
Paid per Share |
|
|
Total Number
of Shares Purchased as Part of Publicly Announced Programs |
|
|
Approximate Dollar Value of
Shares That May Yet be Purchased Under the Program |
|
||
October 1, 2019 — October 31, 2019 (1)
|
|
127,462
|
|
|
$
|
45.81
|
|
|
117,984
|
|
|
$
|
383,596,893
|
|
November 1, 2019 — November 30, 2019
|
|
450,332
|
|
|
$
|
43.86
|
|
|
450,332
|
|
|
363,847,346
|
|
|
December 1, 2019 — December 31, 2019
|
|
1,154,917
|
|
|
$
|
44.85
|
|
|
1,154,917
|
|
|
312,044,361
|
|
|
|
|
1,732,711
|
|
|
|
|
1,723,233
|
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(Dollars in millions, except per share amounts)
|
||||||||||||||||||
Selected Consolidated Statements of Operations Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue
|
$
|
3,230.8
|
|
|
$
|
3,190.2
|
|
|
$
|
3,095.0
|
|
|
$
|
3,031.1
|
|
|
$
|
2,986.0
|
|
Income from continuing operations
|
$
|
369.8
|
|
|
$
|
447.6
|
|
|
$
|
546.8
|
|
|
$
|
177.3
|
|
|
$
|
235.3
|
|
Net income
|
$
|
369.8
|
|
|
$
|
447.6
|
|
|
$
|
546.8
|
|
|
$
|
177.3
|
|
|
$
|
234.9
|
|
Net income attributable to noncontrolling interests
|
(0.2
|
)
|
|
(0.4
|
)
|
|
(0.2
|
)
|
|
(0.3
|
)
|
|
(1.2
|
)
|
|||||
Net income attributable to common stockholders
|
$
|
369.6
|
|
|
$
|
447.2
|
|
|
$
|
546.7
|
|
|
$
|
177.0
|
|
|
$
|
233.8
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income from continuing operations attributable to common stockholders
|
|||||||||||||||||||
Basic
|
$
|
2.03
|
|
|
$
|
2.45
|
|
|
$
|
2.91
|
|
|
$
|
0.92
|
|
|
$
|
1.17
|
|
Diluted
|
$
|
1.99
|
|
|
$
|
2.39
|
|
|
$
|
2.84
|
|
|
$
|
0.90
|
|
|
$
|
1.14
|
|
Net income attributable to common stockholders
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
2.03
|
|
|
$
|
2.45
|
|
|
$
|
2.91
|
|
|
$
|
0.92
|
|
|
$
|
1.17
|
|
Diluted
|
$
|
1.99
|
|
|
$
|
2.39
|
|
|
$
|
2.84
|
|
|
$
|
0.90
|
|
|
$
|
1.14
|
|
Cash dividends declared per share
|
$
|
0.72
|
|
|
$
|
0.68
|
|
|
$
|
0.58
|
|
|
$
|
0.51
|
|
|
$
|
0.44
|
|
Selected Consolidated Balance Sheet Data (at December 31):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total assets
|
$
|
13,677.4
|
|
|
$
|
12,693.2
|
|
|
$
|
12,864.5
|
|
|
$
|
12,038.1
|
|
|
$
|
11,676.4
|
|
Long-term debt (less current maturities), including finance leases
|
$
|
3,513.5
|
|
|
$
|
3,532.2
|
|
|
$
|
3,135.3
|
|
|
$
|
3,196.6
|
|
|
$
|
3,037.6
|
|
Equity
|
$
|
1,823.3
|
|
|
$
|
1,641.8
|
|
|
$
|
1,409.4
|
|
|
$
|
1,095.2
|
|
|
$
|
1,189.4
|
|
Selected Consolidated Statement of Cash Flows Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities
|
$
|
628.8
|
|
|
$
|
615.8
|
|
|
$
|
503.4
|
|
|
$
|
489.0
|
|
|
$
|
472.2
|
|
|
Per Credit Agreement
|
|
Actual
|
|
Leverage ratio
|
4.75 (Max)
|
|
3.78
|
|
Interest coverage ratio
|
3.00 (Min)
|
|
5.03
|
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
|
||||||
Legal settlement, net of insurance recoveries
|
$
|
(6.4
|
)
|
|
$
|
—
|
|
IRS tax settlement (1)
|
$
|
—
|
|
|
$
|
5.6
|
|
(1)
|
See discussion regarding the IRS tax settlement in Note 5 in Part II, Item 8. Financial Statements.
|
•
|
a $96.0 million increase in cash receipts from customers, and
|
•
|
a $15.4 million increase in General Agency (GA) and other receipts; partially offset by
|
•
|
a $26.7 million increase in net trust deposits,
|
•
|
a $22.7 million increase in employee compensation,
|
•
|
a $17.7 million increase in vendor and other payments.
|
•
|
a $10.8 million increase in cash interest payments, and
|
•
|
a $8.5 million increase in cash tax payments,
|
•
|
a $120.6 million decrease in cash spent on business acquisitions,
|
•
|
a $39.8 million increase in cash receipts from divestitures and asset sales
|
•
|
a $14.9 million decrease primarily for the purchase of corporate land, and
|
•
|
a $0.9 million decrease in payments for Company-owned life insurance policies, net of proceeds, partially offset by
|
•
|
a $32.8 million increase in cash spent on real estate acquisitions for cemetery development,
|
•
|
a $4.4 million increase in capital expenditures, primarily due to construction of new funeral homes, and
|
•
|
a $2.9 million decrease in proceeds from sale of other investments.
|
•
|
a $162.3 million increase in debt payments, net of proceeds, and
|
•
|
a $7.6 million increase in payments of dividends; partially offset by
|
•
|
a $148.0 million decrease in purchase of Company common stock,
|
•
|
a $16.4 million increase in proceeds from exercises of stock options, and
|
•
|
a $15.6 million change in bank overdrafts and acquisition related financing.
|
|
|
Payments Due by Period
|
||||||||||||||||||
Contractual Obligations
|
|
2020
|
|
2021-2022
|
|
2023-2024
|
|
Thereafter
|
|
Total
|
||||||||||
|
|
|
|
(In millions)
|
|
|
||||||||||||||
Debt maturities (including finance leases)(1) (2) (3)
|
|
$
|
73.9
|
|
|
$
|
305.3
|
|
|
$
|
1,729.0
|
|
|
$
|
1,504.4
|
|
|
$
|
3,612.6
|
|
Interest obligation on long-term debt(4)
|
|
169.5
|
|
|
320.9
|
|
|
262.4
|
|
|
274.8
|
|
|
1,027.6
|
|
|||||
Operating lease agreements(5)
|
|
11.1
|
|
|
19.0
|
|
|
11.8
|
|
|
40.3
|
|
|
82.2
|
|
|||||
Employment and management, consulting, and non-competition agreements(6)
|
|
8.2
|
|
|
10.4
|
|
|
4.8
|
|
|
4.8
|
|
|
28.2
|
|
|||||
Benefit cost obligation(7)
|
|
2.7
|
|
|
4.7
|
|
|
4.0
|
|
|
8.4
|
|
|
19.8
|
|
|||||
Firm purchase agreement(8)
|
|
7.0
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
|
8.2
|
|
|||||
Total contractual obligations
|
|
$
|
272.4
|
|
|
$
|
661.5
|
|
|
$
|
2,012.0
|
|
|
$
|
1,832.7
|
|
|
$
|
4,778.6
|
|
(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, 2019 is $5.6 million.
|
(3)
|
Excludes non-cash debt issuance costs on the debt. The unamortized balance of debt issuance costs at December 31, 2019 is $34.9 million.
|
(4)
|
Approximately 69% 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 include funeral service real estate and office equipment for funeral service locations, cemetery locations, and administrative offices. 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 associates and former owners of businesses acquired. Agreements with contractual periods less than one year are excluded. See Note 9 in Part II, Item 8. Financial Statements and Supplementary Data for additional details related to these agreements.
|
(7)
|
See Note 12 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
|
|
2020
|
|
2021-2022
|
|
2023-2024
|
|
Thereafter
|
|
Total
|
||||||||||
|
|
|
|
(In millions)
|
|
|
||||||||||||||
Surety obligations(1)
|
|
$
|
153.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
153.8
|
|
Long-term obligations related to uncertain tax positions(2)
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.0
|
|
|||||
Letters of credit(3)
|
|
34.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34.0
|
|
|||||
Total commercial and contingent obligations
|
|
$
|
189.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
189.8
|
|
(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 $2.0 million as of December 31, 2019. 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 obligated to reimburse the issuer only if the beneficiary collects on the letter of credit. We believe it is unlikely we will be required to fund a claim under our outstanding letters of credit. As of December 31, 2019, $34.0 million of our letters of credit were supported by our Bank Credit Facility, which expires in May 2024.
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In millions)
|
||||||
Preneed funeral
|
$
|
94.6
|
|
|
$
|
106.9
|
|
Preneed cemetery:
|
|
|
|
|
|
||
Merchandise and services
|
147.6
|
|
|
137.9
|
|
||
Pre-construction
|
20.3
|
|
|
15.4
|
|
||
Bonds supporting preneed funeral and cemetery obligations
|
262.5
|
|
|
260.2
|
|
||
Bonds supporting preneed business permits
|
5.5
|
|
|
4.2
|
|
||
Other bonds
|
19.7
|
|
|
18.9
|
|
||
Total surety bonds outstanding
|
$
|
287.7
|
|
|
$
|
283.3
|
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in millions)
|
||||||
Preneed insurance-funded:
|
|
|
|
||||
Sales production(1)
|
$
|
568.8
|
|
|
$
|
538.9
|
|
Sales production (number of contracts) (1)
|
99,310
|
|
|
92,858
|
|
||
General agency revenue
|
$
|
139.7
|
|
|
$
|
134.1
|
|
Maturities
|
$
|
347.5
|
|
|
$
|
342.5
|
|
Maturities (number of contracts)
|
58,773
|
|
|
58,232
|
|
(1)
|
Amounts are not included in our Consolidated Balance Sheet
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in millions)
|
||||||
Funeral:
|
|
|
|
|
|
||
Preneed trust-funded (including bonded):
|
|
|
|
|
|
||
Sales production
|
$
|
379.7
|
|
|
$
|
354.6
|
|
Sales production (number of contracts)
|
102,176
|
|
|
95,768
|
|
||
Maturities
|
$
|
289.2
|
|
|
$
|
288.4
|
|
Maturities (number of contracts)
|
72,523
|
|
|
71,617
|
|
||
Cemetery:
|
|
|
|
|
|
||
Sales production:
|
|
|
|
|
|
||
Preneed
|
$
|
908.9
|
|
|
$
|
892.0
|
|
Atneed
|
327.0
|
|
|
322.0
|
|
||
Total sales production
|
$
|
1,235.9
|
|
|
$
|
1,214.0
|
|
Sales production deferred to backlog:
|
|
|
|
|
|
||
Preneed
|
$
|
397.8
|
|
|
$
|
421.1
|
|
Atneed
|
241.4
|
|
|
238.1
|
|
||
Total sales production deferred to backlog
|
$
|
639.2
|
|
|
$
|
659.2
|
|
Revenue recognized from backlog:
|
|
|
|
|
|
||
Preneed
|
$
|
310.2
|
|
|
$
|
338.8
|
|
Atneed
|
237.6
|
|
|
236.7
|
|
||
Total revenue recognized from backlog
|
$
|
547.8
|
|
|
$
|
575.5
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
Fair Value
|
|
Cost
|
|
Fair Value
|
|
Cost
|
||||||||
|
(In billions)
|
||||||||||||||
Deferred revenue, net
|
$
|
1.47
|
|
|
$
|
1.47
|
|
|
$
|
1.42
|
|
|
$
|
1.42
|
|
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts (1)
|
0.58
|
|
|
0.58
|
|
|
0.57
|
|
|
0.57
|
|
||||
Deferred receipts held in trust
|
3.84
|
|
|
3.54
|
|
|
3.37
|
|
|
3.47
|
|
||||
Allowance for cancellation on trust investments
|
(0.27
|
)
|
|
(0.25
|
)
|
|
(0.24
|
)
|
|
(0.25
|
)
|
||||
Backlog of trust-funded deferred revenue, net of estimated allowance for cancellation
|
5.62
|
|
|
5.34
|
|
|
5.12
|
|
|
5.21
|
|
||||
Backlog of insurance-funded revenue (1)
|
6.37
|
|
|
6.37
|
|
|
5.97
|
|
|
5.97
|
|
||||
Total backlog of deferred revenue
|
$
|
11.99
|
|
|
$
|
11.71
|
|
|
$
|
11.09
|
|
|
$
|
11.18
|
|
|
|
|
|
|
|
|
|
||||||||
Preneed receivables, net and trust investments
|
$
|
4.79
|
|
|
$
|
4.49
|
|
|
$
|
4.27
|
|
|
$
|
4.37
|
|
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts (1)
|
0.58
|
|
|
0.58
|
|
|
0.57
|
|
|
0.57
|
|
||||
Allowance for cancellation on trust investments
|
(0.27
|
)
|
|
(0.25
|
)
|
|
(0.24
|
)
|
|
(0.25
|
)
|
||||
Assets associated with backlog of trust-funded deferred revenue, net of estimated allowance for cancellation
|
5.10
|
|
|
4.82
|
|
|
4.60
|
|
|
4.69
|
|
||||
Insurance policies associated with insurance-funded deferred revenue (2)
|
6.37
|
|
|
6.37
|
|
|
5.97
|
|
|
5.97
|
|
||||
Total assets associated with backlog of preneed revenue
|
$
|
11.47
|
|
|
$
|
11.19
|
|
|
$
|
10.57
|
|
|
$
|
10.66
|
|
(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,
|
||||||
|
2019
|
|
2018
|
||||
|
(In millions)
|
||||||
Pre-tax gains on divestitures and impairment charges, net
|
$
|
32.9
|
|
|
$
|
15.9
|
|
Pre-tax losses on early extinguishment of debt, net
|
$
|
(16.6
|
)
|
|
$
|
(10.1
|
)
|
Pre-tax legal settlements
|
$
|
(6.4
|
)
|
|
$
|
—
|
|
Tax effect from special items
|
$
|
(4.1
|
)
|
|
$
|
(1.6
|
)
|
Change in uncertain tax reserves and other (1)
|
$
|
10.9
|
|
|
$
|
107.8
|
|
(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,
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in millions, except average revenue per service)
|
||||||
Consolidated funeral revenue
|
$
|
1,923.9
|
|
|
$
|
1,898.0
|
|
Less: revenue associated with acquisitions/new construction
|
42.1
|
|
|
16.3
|
|
||
Less: revenue associated with divestitures
|
4.6
|
|
|
12.1
|
|
||
Comparable(1) funeral revenue
|
1,877.2
|
|
|
1,869.6
|
|
||
Less: comparable recognized preneed revenue
|
137.0
|
|
|
124.3
|
|
||
Less: comparable general agency and other revenue
|
128.1
|
|
|
123.6
|
|
||
Adjusted comparable funeral revenue
|
$
|
1,612.1
|
|
|
$
|
1,621.7
|
|
Comparable services performed
|
307,702
|
|
|
307,865
|
|
||
Comparable average revenue per service(2)
|
$
|
5,239
|
|
|
$
|
5,268
|
|
|
|
|
|
||||
Consolidated funeral gross profit
|
$
|
372.6
|
|
|
$
|
369.6
|
|
Less: gross profit associated with acquisitions/new construction
|
3.3
|
|
|
—
|
|
||
Less: gross losses associated with divestitures
|
(1.9
|
)
|
|
(3.4
|
)
|
||
Comparable(1) funeral gross profit
|
$
|
371.2
|
|
|
$
|
373.0
|
|
(1)
|
We define comparable (or same store) operations as those funeral locations owned by us for the entire period beginning January 1, 2018 and ending December 31, 2019.
|
(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,
|
||||||
|
2019
|
|
2018
|
||||
|
(In millions)
|
||||||
Consolidated cemetery revenue
|
$
|
1,306.9
|
|
|
$
|
1,292.2
|
|
Less: revenue associated with acquisitions
|
20.5
|
|
|
11.2
|
|
||
Less: revenue associated with divestitures
|
1.4
|
|
|
2.3
|
|
||
Comparable(1) cemetery revenue
|
$
|
1,285.0
|
|
|
$
|
1,278.7
|
|
|
|
|
|
||||
Consolidated cemetery gross profit
|
$
|
387.9
|
|
|
$
|
390.7
|
|
Less: gross profit associated with acquisitions
|
1.8
|
|
|
2.5
|
|
||
Less: gross profit associated with divestitures
|
0.3
|
|
|
0.2
|
|
||
Comparable(1) cemetery gross profit
|
$
|
385.8
|
|
|
$
|
388.0
|
|
(1)
|
We define comparable (or same store) operations as those cemetery locations owned by us for the entire period beginning January 1, 2018 and ending December 31, 2019.
|
•
|
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.
|
|
Page
|
Financial Statements:
|
|
Financial Statement Schedule:
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands, except per share amounts)
|
||||||||||
Revenue
|
|
|
|
|
|
||||||
Property and merchandise revenue
|
$
|
1,610,158
|
|
|
$
|
1,584,242
|
|
|
$
|
1,525,747
|
|
Service revenue
|
1,379,001
|
|
|
1,374,380
|
|
|
1,356,665
|
|
|||
Other revenue
|
241,626
|
|
|
231,552
|
|
|
212,619
|
|
|||
Total revenue
|
3,230,785
|
|
|
3,190,174
|
|
|
3,095,031
|
|
|||
Costs of revenue
|
|
|
|
|
|
||||||
Cost of property and merchandise
|
(829,158
|
)
|
|
(811,574
|
)
|
|
(794,725
|
)
|
|||
Cost of service
|
(769,119
|
)
|
|
(752,488
|
)
|
|
(729,204
|
)
|
|||
Overhead and other expenses
|
(871,928
|
)
|
|
(865,790
|
)
|
|
(848,323
|
)
|
|||
Costs of revenue
|
(2,470,205
|
)
|
|
(2,429,852
|
)
|
|
(2,372,252
|
)
|
|||
Gross profit
|
760,580
|
|
|
760,322
|
|
|
722,779
|
|
|||
Corporate general and administrative expenses
|
(126,886
|
)
|
|
(145,596
|
)
|
|
(158,651
|
)
|
|||
Gains on divestitures and impairment charges, net
|
32,919
|
|
|
15,933
|
|
|
7,015
|
|
|||
Operating income
|
666,613
|
|
|
630,659
|
|
|
571,143
|
|
|||
Interest expense
|
(185,843
|
)
|
|
(181,556
|
)
|
|
(169,125
|
)
|
|||
Losses on early extinguishment of debt, net
|
(16,637
|
)
|
|
(10,131
|
)
|
|
(274
|
)
|
|||
Other income (expense), net
|
299
|
|
|
2,760
|
|
|
(1,486
|
)
|
|||
Income before income taxes
|
464,432
|
|
|
441,732
|
|
|
400,258
|
|
|||
(Provision for) benefit from income taxes
|
(94,661
|
)
|
|
5,826
|
|
|
146,589
|
|
|||
Net income
|
369,771
|
|
|
447,558
|
|
|
546,847
|
|
|||
Net income attributable to noncontrolling interests
|
(175
|
)
|
|
(350
|
)
|
|
(184
|
)
|
|||
Net income attributable to common stockholders
|
$
|
369,596
|
|
|
$
|
447,208
|
|
|
$
|
546,663
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|||
Net income attributable to common stockholders
|
$
|
2.03
|
|
|
$
|
2.45
|
|
|
$
|
2.91
|
|
Basic weighted average number of shares
|
182,246
|
|
|
182,447
|
|
|
187,630
|
|
|||
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|||
Net income attributable to common stockholders
|
$
|
1.99
|
|
|
$
|
2.39
|
|
|
$
|
2.84
|
|
Diluted weighted average number of shares
|
185,523
|
|
|
186,972
|
|
|
192,246
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Net income
|
$
|
369,771
|
|
|
$
|
447,558
|
|
|
$
|
546,847
|
|
Other comprehensive income:
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
16,470
|
|
|
(28,478
|
)
|
|
25,462
|
|
|||
Total comprehensive income
|
386,241
|
|
|
419,080
|
|
|
572,309
|
|
|||
Total comprehensive income attributable to noncontrolling interests
|
(176
|
)
|
|
(191
|
)
|
|
(195
|
)
|
|||
Total comprehensive income attributable to common stockholders
|
$
|
386,065
|
|
|
$
|
418,889
|
|
|
$
|
572,114
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands, except share amounts)
|
||||||
|
|
|
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
186,276
|
|
|
$
|
198,850
|
|
Receivables, net
|
81,671
|
|
|
73,825
|
|
||
Inventories
|
25,118
|
|
|
24,950
|
|
||
Other
|
80,488
|
|
|
33,607
|
|
||
Total current assets
|
373,553
|
|
|
331,232
|
|
||
Preneed receivables, net and trust investments
|
4,789,562
|
|
|
4,271,392
|
|
||
Cemetery property
|
1,873,602
|
|
|
1,837,464
|
|
||
Property and equipment, net
|
2,065,433
|
|
|
1,977,364
|
|
||
Goodwill
|
1,864,223
|
|
|
1,863,842
|
|
||
Deferred charges and other assets
|
1,029,908
|
|
|
934,151
|
|
||
Cemetery perpetual care trust investments
|
1,681,149
|
|
|
1,477,798
|
|
||
Total assets
|
$
|
13,677,430
|
|
|
$
|
12,693,243
|
|
|
|
|
|
||||
LIABILITIES & EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
|
||
Accounts payable and accrued liabilities
|
$
|
478,545
|
|
|
$
|
479,768
|
|
Current maturities of long-term debt
|
69,821
|
|
|
69,896
|
|
||
Income taxes payable
|
8,353
|
|
|
5,936
|
|
||
Total current liabilities
|
556,719
|
|
|
555,600
|
|
||
Long-term debt
|
3,513,530
|
|
|
3,532,182
|
|
||
Deferred revenue, net
|
1,467,103
|
|
|
1,418,814
|
|
||
Deferred tax liability
|
421,482
|
|
|
404,627
|
|
||
Other liabilities
|
378,074
|
|
|
297,302
|
|
||
Deferred receipts held in trust
|
3,839,376
|
|
|
3,371,738
|
|
||
Care trusts’ corpus
|
1,677,891
|
|
|
1,471,165
|
|
||
Commitments and contingencies (Note 9)
|
|
|
|
|
|
||
Equity:
|
|
|
|
||||
Common stock, $1 per share par value, 500,000,000 shares authorized, 185,100,789 and 184,720,582 shares issued, respectively, and 181,184,963 and 181,470,582 shares outstanding, respectively
|
181,185
|
|
|
181,471
|
|
||
Capital in excess of par value
|
1,010,361
|
|
|
972,710
|
|
||
Retained earnings
|
601,903
|
|
|
474,327
|
|
||
Accumulated other comprehensive income
|
29,864
|
|
|
13,395
|
|
||
Total common stockholders’ equity
|
1,823,313
|
|
|
1,641,903
|
|
||
Noncontrolling interests
|
(58
|
)
|
|
(88
|
)
|
||
Total equity
|
1,823,255
|
|
|
1,641,815
|
|
||
Total liabilities and equity
|
$
|
13,677,430
|
|
|
$
|
12,693,243
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
(In thousands)
|
|
|
|
|||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
369,771
|
|
|
$
|
447,558
|
|
|
$
|
546,847
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|||
Losses on early extinguishment of debt, net
|
16,637
|
|
|
10,131
|
|
|
274
|
|
|||
Depreciation and amortization
|
151,000
|
|
|
153,650
|
|
|
153,141
|
|
|||
Amortization of intangibles
|
25,649
|
|
|
26,195
|
|
|
27,650
|
|
|||
Amortization of cemetery property
|
70,330
|
|
|
68,640
|
|
|
68,102
|
|
|||
Amortization of loan costs
|
5,681
|
|
|
6,059
|
|
|
5,859
|
|
|||
Provision for doubtful accounts
|
9,146
|
|
|
8,372
|
|
|
9,980
|
|
|||
Provision for (benefits from) deferred income taxes
|
23,030
|
|
|
(41,479
|
)
|
|
(317,838
|
)
|
|||
Gains on divestitures and impairment charges, net
|
(32,919
|
)
|
|
(15,933
|
)
|
|
(7,015
|
)
|
|||
Gain on sale of investments
|
—
|
|
|
(2,636
|
)
|
|
—
|
|
|||
Share-based compensation
|
15,029
|
|
|
15,626
|
|
|
14,788
|
|
|||
Change in assets and liabilities, net of effects from acquisitions and dispositions:
|
|
|
|
|
|
|
|
|
|||
Increase (decrease) in receivables
|
(12,711
|
)
|
|
8,052
|
|
|
(9,740
|
)
|
|||
Increase in other assets
|
(23,018
|
)
|
|
(4,814
|
)
|
|
(14,353
|
)
|
|||
Increase (decrease) in payables and other liabilities
|
1,788
|
|
|
(16,699
|
)
|
|
81,763
|
|
|||
Effect of preneed sales production and maturities:
|
|
|
|
|
|
||||||
Increase in preneed receivables, net and trust investments
|
(16,144
|
)
|
|
(55,607
|
)
|
|
(63,994
|
)
|
|||
Increase in deferred revenue, net
|
67,792
|
|
|
28,005
|
|
|
31,182
|
|
|||
Decrease in deferred receipts held in trust
|
(42,306
|
)
|
|
(19,290
|
)
|
|
(23,274
|
)
|
|||
Net cash provided by operating activities
|
628,755
|
|
|
615,830
|
|
|
503,372
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Capital expenditures
|
(239,957
|
)
|
|
(235,545
|
)
|
|
(214,501
|
)
|
|||
Business acquisitions, net of cash acquired
|
(55,644
|
)
|
|
(176,252
|
)
|
|
(64,652
|
)
|
|||
Real estate acquisitions
|
(51,373
|
)
|
|
(18,572
|
)
|
|
(11,519
|
)
|
|||
Proceeds from divestitures and sales of property and equipment
|
77,074
|
|
|
37,309
|
|
|
52,381
|
|
|||
Proceeds from sale of investments
|
—
|
|
|
2,900
|
|
|
—
|
|
|||
Payments for Company-owned life insurance policies
|
(9,026
|
)
|
|
(14,760
|
)
|
|
(7,360
|
)
|
|||
Proceeds from Company-owned life insurance policies
|
—
|
|
|
4,824
|
|
|
2,592
|
|
|||
Purchase of corporate land and other
|
415
|
|
|
(14,525
|
)
|
|
175
|
|
|||
Net cash used in investing activities
|
(278,511
|
)
|
|
(414,621
|
)
|
|
(242,884
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Proceeds from issuance of long-term debt
|
1,149,263
|
|
|
396,349
|
|
|
1,787,500
|
|
|||
Debt issuance costs
|
(15,539
|
)
|
|
—
|
|
|
(12,939
|
)
|
|||
Scheduled payments of debt
|
(25,471
|
)
|
|
(34,134
|
)
|
|
(468,973
|
)
|
|||
Early payments of debt
|
(1,164,978
|
)
|
|
(259,590
|
)
|
|
(1,117,512
|
)
|
|||
Principal payments on finance leases
|
(42,627
|
)
|
|
(39,686
|
)
|
|
(51,106
|
)
|
|||
Proceeds from exercise of stock options
|
40,922
|
|
|
24,517
|
|
|
33,611
|
|
|||
Purchase of Company common stock
|
(129,589
|
)
|
|
(277,611
|
)
|
|
(199,637
|
)
|
|||
Payments of dividends
|
(131,402
|
)
|
|
(123,849
|
)
|
|
(108,750
|
)
|
|||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
(4,580
|
)
|
|||
Bank overdrafts and other
|
328
|
|
|
(15,177
|
)
|
|
5,959
|
|
|||
Net cash used in financing activities
|
(319,093
|
)
|
|
(329,181
|
)
|
|
(136,427
|
)
|
|||
Effect of foreign currency
|
3,885
|
|
|
(5,045
|
)
|
|
5,034
|
|
|||
Net (decrease) increase in cash, cash equivalents, and restricted cash
|
35,036
|
|
|
(133,017
|
)
|
|
129,095
|
|
|||
Cash, cash equivalents, and restricted cash at beginning of period
|
207,584
|
|
|
340,601
|
|
|
211,506
|
|
|||
Cash, cash equivalents, and restricted cash at end of period
|
$
|
242,620
|
|
|
$
|
207,584
|
|
|
$
|
340,601
|
|
|
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, 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
369,596
|
|
|
16,469
|
|
|
176
|
|
|
386,241
|
|
|||||||
Dividends declared on common stock ($.72 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(131,402
|
)
|
|
—
|
|
|
—
|
|
|
(131,402
|
)
|
|||||||
Stock option exercises
|
2,394
|
|
|
—
|
|
|
38,528
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40,922
|
|
|||||||
Restricted stock awards, net of forfeitures
|
126
|
|
|
—
|
|
|
(126
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Employee share-based compensation earned
|
—
|
|
|
—
|
|
|
15,029
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,029
|
|
|||||||
Purchase of Company common stock
|
—
|
|
|
(2,909
|
)
|
|
(16,062
|
)
|
|
(110,618
|
)
|
|
—
|
|
|
—
|
|
|
(129,589
|
)
|
|||||||
Noncontrolling interest payments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(146
|
)
|
|
(146
|
)
|
|||||||
Retirement of treasury shares
|
(2,243
|
)
|
|
2,243
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other
|
103
|
|
|
—
|
|
|
282
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
385
|
|
|||||||
Balance at December 31, 2019
|
$
|
185,101
|
|
|
$
|
(3,916
|
)
|
|
$
|
1,010,361
|
|
|
$
|
601,903
|
|
|
$
|
29,864
|
|
|
$
|
(58
|
)
|
|
$
|
1,823,255
|
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Cash and cash equivalents
|
$
|
186,276
|
|
|
$
|
198,850
|
|
Restricted cash(1):
|
|
|
|
||||
Included in Other current assets
|
54,293
|
|
|
7,007
|
|
||
Included in Deferred charges and other assets
|
2,051
|
|
|
1,727
|
|
||
Total restricted cash
|
56,344
|
|
|
8,734
|
|
||
Total cash, cash equivalents, and restricted cash
|
$
|
242,620
|
|
|
$
|
207,584
|
|
(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.
|
•
|
Cost of property and merchandise, which includes cemetery property amortization, the direct cost of merchandise, labor-related costs for merchandise handling and delivery, cemetery maintenance expenses and depreciation, and selling costs;
|
•
|
Cost of services, which includes the direct cost of providing the services (including labor-related costs), cemetery maintenance expenses and depreciation, vehicle operating costs and depreciation, and selling costs; and
|
•
|
Overhead and other expenses, which includes labor-related costs, facility expenses and depreciation, and other general and administrative expenses incurred in our funeral and cemetery operations.
|
•
|
a $0.7 million reclass from Other current assets to Accounts payable and accrued liabilities for prepaid operating lease expenses,
|
•
|
a $2.7 million reclass from Accounts payable and accrued liabilities to Deferred charges and other assets for accrued operating lease expenses,
|
•
|
a $62.6 million increase to Deferred charges and other assets for operating lease right-of-use assets, and
|
•
|
a $9.4 million and $53.2 million increase to Accounts payable and accrued liabilities and Other liabilities, respectively, for operating lease liabilities.
|
1.
|
We elected a package of practical expedients to not reassess:
|
•
|
whether a contract is or contains a lease,
|
•
|
lease classification, or
|
•
|
initial direct costs.
|
2.
|
We did not elect a practical expedient to use hindsight when determining lease term.
|
3.
|
We elected the short-term lease recognition exemption.
|
4.
|
The remaining practical expedients do not apply or do not have a material impact.
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Preneed funeral receivables
|
$
|
130,971
|
|
|
$
|
107,612
|
|
Preneed cemetery receivables
|
922,171
|
|
|
883,432
|
|
||
Preneed receivables from customers
|
1,053,142
|
|
|
991,044
|
|
||
Unearned finance charge
|
(50,570
|
)
|
|
(44,981
|
)
|
||
Allowance for cancellation
|
(55,340
|
)
|
|
(48,380
|
)
|
||
Preneed receivables, net
|
947,232
|
|
|
897,683
|
|
||
|
|
|
|
||||
Trust investments, at market
|
5,258,319
|
|
|
4,585,720
|
|
||
Insurance-backed fixed income securities and other
|
265,160
|
|
|
265,787
|
|
||
Trust investments
|
5,523,479
|
|
|
4,851,507
|
|
||
Less: Cemetery perpetual care trust investments
|
(1,681,149
|
)
|
|
(1,477,798
|
)
|
||
Preneed trust investments
|
3,842,330
|
|
|
3,373,709
|
|
||
|
|
|
|
||||
Preneed receivables, net and trust investments
|
$
|
4,789,562
|
|
|
$
|
4,271,392
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
(In thousands)
|
|
|
||||||
Deposits
|
$
|
421,460
|
|
|
$
|
393,523
|
|
|
$
|
371,234
|
|
Withdrawals
|
$
|
435,344
|
|
|
$
|
432,822
|
|
|
$
|
415,283
|
|
Purchases of securities
|
$
|
1,596,698
|
|
|
$
|
1,540,093
|
|
|
$
|
2,057,348
|
|
Sales of securities
|
$
|
1,495,733
|
|
|
$
|
1,564,968
|
|
|
$
|
1,999,918
|
|
Realized gains from sales of securities(1)
|
$
|
241,661
|
|
|
$
|
305,595
|
|
|
$
|
256,413
|
|
Realized losses from sales of securities(1)
|
$
|
(121,272
|
)
|
|
$
|
(77,996
|
)
|
|
$
|
(76,963
|
)
|
(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,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
(In thousands)
|
|
|
||||||
Beginning balance - Preneed receivables, net and trust investments
|
$
|
4,271,392
|
|
|
$
|
4,778,842
|
|
|
$
|
4,305,165
|
|
Net preneed contract sales
|
1,372,705
|
|
|
1,325,134
|
|
|
1,257,288
|
|
|||
Cash receipts from customers, net of refunds
|
(1,280,468
|
)
|
|
(1,185,717
|
)
|
|
(1,109,380
|
)
|
|||
Deposits to trust
|
372,644
|
|
|
347,601
|
|
|
328,241
|
|
|||
Acquisitions of businesses, net
|
11,751
|
|
|
134,729
|
|
|
8,153
|
|
|||
Net undistributed investment earnings (losses) (1)
|
489,577
|
|
|
(191,611
|
)
|
|
384,512
|
|
|||
Maturities and distributed earnings
|
(442,507
|
)
|
|
(433,036
|
)
|
|
(411,452
|
)
|
|||
Change in cancellation allowance
|
(2,006
|
)
|
|
62,131
|
|
|
(528
|
)
|
|||
Change in amounts due on unfulfilled performance obligations
|
(10,223
|
)
|
|
(546,554
|
)
|
|
—
|
|
|||
Effect of foreign currency and other
|
6,697
|
|
|
(20,127
|
)
|
|
16,843
|
|
|||
Ending balance - Preneed receivables, net and trust investments
|
$
|
4,789,562
|
|
|
$
|
4,271,392
|
|
|
$
|
4,778,842
|
|
(1)
|
Includes both realized and unrealized investment earnings (losses).
|
|
|
December 31, 2019
|
||||||||||||||
|
Fair Value Hierarchy Level
|
Cost
|
|
|
Unrealized
Gains
|
|
|
Unrealized
Losses
|
|
|
Value
|
|
||||
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury
|
2
|
$
|
49,728
|
|
|
$
|
752
|
|
|
$
|
(130
|
)
|
|
$
|
50,350
|
|
Canadian government
|
2
|
41,093
|
|
|
76
|
|
|
(850
|
)
|
|
40,319
|
|
||||
Corporate
|
2
|
9,694
|
|
|
28
|
|
|
(172
|
)
|
|
9,550
|
|
||||
Residential mortgage-backed
|
2
|
3,210
|
|
|
59
|
|
|
(1
|
)
|
|
3,268
|
|
||||
Asset-backed
|
2
|
129
|
|
|
3
|
|
|
(4
|
)
|
|
128
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|||||||
Preferred stock
|
2
|
6,338
|
|
|
804
|
|
|
(115
|
)
|
|
7,027
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|||||||
United States
|
1
|
1,349,828
|
|
|
303,766
|
|
|
(36,507
|
)
|
|
1,617,087
|
|
||||
Canada
|
1
|
43,866
|
|
|
12,369
|
|
|
(2,075
|
)
|
|
54,160
|
|
||||
Other international
|
1
|
95,257
|
|
|
18,227
|
|
|
(522
|
)
|
|
112,962
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|||||||
Equity
|
1
|
746,581
|
|
|
31,511
|
|
|
(54,020
|
)
|
|
724,072
|
|
||||
Fixed income
|
1
|
1,247,930
|
|
|
16,424
|
|
|
(32,587
|
)
|
|
1,231,767
|
|
||||
Other
|
3
|
7,034
|
|
|
1,184
|
|
|
—
|
|
|
8,218
|
|
||||
Trust investments, at fair value
|
|
3,600,688
|
|
|
385,203
|
|
|
(126,983
|
)
|
|
3,858,908
|
|
||||
Commingled funds
|
|
|
|
|
|
|
|
|
||||||||
Fixed income
|
|
444,744
|
|
|
5,077
|
|
|
(1,731
|
)
|
|
448,090
|
|
||||
Equity
|
|
249,980
|
|
|
47,631
|
|
|
—
|
|
|
297,611
|
|
||||
Money market funds
|
|
397,461
|
|
|
—
|
|
|
—
|
|
|
397,461
|
|
||||
Private equity
|
|
176,388
|
|
|
80,283
|
|
|
(422
|
)
|
|
256,249
|
|
||||
Trust investments, at net asset value
|
|
1,268,573
|
|
|
132,991
|
|
|
(2,153
|
)
|
|
1,399,411
|
|
||||
Trust investments, at market
|
|
$
|
4,869,261
|
|
|
$
|
518,194
|
|
|
$
|
(129,136
|
)
|
|
$
|
5,258,319
|
|
|
|
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
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(In thousands)
|
||||||||||
Fair value, beginning balance at January 1
|
|
$
|
9,755
|
|
|
$
|
9,067
|
|
|
$
|
7,163
|
|
Net realized and unrealized (losses) gains included in Other income (expense), net(1)
|
|
(761
|
)
|
|
(697
|
)
|
|
912
|
|
|||
Purchases
|
|
1,006
|
|
|
66
|
|
|
1,945
|
|
|||
Sales
|
|
(1,782
|
)
|
|
(26
|
)
|
|
(953
|
)
|
|||
Acquisitions, net
|
|
—
|
|
|
1,345
|
|
|
—
|
|
|||
Fair value, ending balance at December 31
|
|
$
|
8,218
|
|
|
$
|
9,755
|
|
|
$
|
9,067
|
|
(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
|
$
|
58,452
|
|
Due in one to five years
|
36,994
|
|
|
Due in five to ten years
|
8,038
|
|
|
Thereafter
|
131
|
|
|
Total estimated maturities of fixed income securities
|
$
|
103,615
|
|
|
December 31, 2019
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Fair
Market
Value
|
|
|
Unrealized
Losses
|
|
|
Fair
Market
Value
|
|
|
Unrealized
Losses
|
|
|
Fair
Market
Value
|
|
|
Unrealized
Losses
|
|
||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury
|
$
|
3,023
|
|
|
$
|
(36
|
)
|
|
$
|
1,947
|
|
|
$
|
(94
|
)
|
|
$
|
4,970
|
|
|
$
|
(130
|
)
|
Canadian government
|
—
|
|
|
—
|
|
|
13,804
|
|
|
(850
|
)
|
|
13,804
|
|
|
(850
|
)
|
||||||
Corporate
|
30
|
|
|
—
|
|
|
4,826
|
|
|
(172
|
)
|
|
4,856
|
|
|
(172
|
)
|
||||||
Residential mortgage-backed
|
—
|
|
|
—
|
|
|
51
|
|
|
(1
|
)
|
|
51
|
|
|
(1
|
)
|
||||||
Asset-backed
|
—
|
|
|
—
|
|
|
28
|
|
|
(4
|
)
|
|
28
|
|
|
(4
|
)
|
||||||
Total fixed income temporarily impaired securities
|
$
|
3,053
|
|
|
$
|
(36
|
)
|
|
$
|
20,656
|
|
|
$
|
(1,121
|
)
|
|
$
|
23,709
|
|
|
$
|
(1,157
|
)
|
|
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
|
)
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Deferred revenue
|
$
|
2,046,000
|
|
|
$
|
1,989,232
|
|
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts (1)
|
(578,897
|
)
|
|
(570,418
|
)
|
||
Deferred revenue, net
|
$
|
1,467,103
|
|
|
$
|
1,418,814
|
|
(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.
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Beginning balance — Deferred revenue, net and Deferred receipts held in trust
|
$
|
4,790,552
|
|
|
$
|
5,265,206
|
|
Cumulative effect of accounting changes
|
—
|
|
|
37,991
|
|
||
Net preneed contract sales
|
984,575
|
|
|
977,378
|
|
||
(Dispositions) acquisitions of businesses, net
|
(12,741
|
)
|
|
159,560
|
|
||
Net investment gains (losses)(1)
|
484,577
|
|
|
(195,051
|
)
|
||
Recognized revenue from backlog (2)
|
(368,908
|
)
|
|
(381,041
|
)
|
||
Recognized revenue from current period sales
|
(573,804
|
)
|
|
(572,428
|
)
|
||
Change in amounts due on unfulfilled performance obligations
|
(10,223
|
)
|
|
(546,554
|
)
|
||
Change in cancellation reserve
|
1,066
|
|
|
65,817
|
|
||
Effect of foreign currency and other
|
11,385
|
|
|
(20,326
|
)
|
||
Ending balance — Deferred revenue, net and Deferred receipts held in trust
|
$
|
5,306,479
|
|
|
$
|
4,790,552
|
|
(1)
|
Includes both realized and unrealized investment gains (losses).
|
(2)
|
Includes current year trust fund income through the date of performance.
|
|
Year Ended December 31,
|
||
|
2017
|
||
|
(In thousands)
|
||
Beginning balance — Deferred revenue, net
|
$
|
1,731,417
|
|
Net preneed contract sales
|
900,037
|
|
|
Acquisitions of businesses, net
|
10,488
|
|
|
Net investment earnings (1)
|
381,436
|
|
|
Recognized revenue
|
(876,857
|
)
|
|
Change in cancellation allowance
|
(165
|
)
|
|
Change in deferred receipts held in trust
|
(361,499
|
)
|
|
Effect of foreign currency and other
|
4,919
|
|
|
Ending balance — Deferred revenue, net
|
$
|
1,789,776
|
|
(1)
|
Includes both realized and unrealized investment earnings.
|
|
Years Ended December 31,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
|
Funeral
|
|
Cemetery
|
|
Total
|
|
Funeral
|
|
Cemetery
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Beginning balance — Goodwill
|
$
|
1,528,407
|
|
|
$
|
335,435
|
|
|
$
|
1,863,842
|
|
|
$
|
1,499,741
|
|
|
$
|
306,240
|
|
|
$
|
1,805,981
|
|
Increase (decrease) in goodwill related to acquisitions (1)
|
7,458
|
|
|
(6,003
|
)
|
|
1,455
|
|
|
38,976
|
|
|
29,219
|
|
|
68,195
|
|
||||||
Reduction of goodwill related to divestitures
|
(5,003
|
)
|
|
(487
|
)
|
|
(5,490
|
)
|
|
(2,183
|
)
|
|
(24
|
)
|
|
(2,207
|
)
|
||||||
Effect of foreign currency
|
4,416
|
|
|
—
|
|
|
4,416
|
|
|
(8,127
|
)
|
|
—
|
|
|
(8,127
|
)
|
||||||
Activity
|
6,871
|
|
|
(6,490
|
)
|
|
381
|
|
|
28,666
|
|
|
29,195
|
|
|
57,861
|
|
||||||
Ending balance — Goodwill
|
$
|
1,535,278
|
|
|
$
|
328,945
|
|
|
$
|
1,864,223
|
|
|
$
|
1,528,407
|
|
|
$
|
335,435
|
|
|
$
|
1,863,842
|
|
(1)
|
Also includes adjustments within the remeasurement period related to acquisitions.
|
|
Useful Life
|
|
|
|
|
||||||
|
Minimum
|
|
Maximum
|
|
2019
|
|
2018
|
||||
|
(Years)
|
|
(In thousands)
|
||||||||
Amortizing intangibles:
|
|
|
|
|
|
|
|
||||
Covenants-not-to-compete
|
2
|
-
|
20
|
|
$
|
216,646
|
|
|
$
|
215,424
|
|
Customer relationships
|
10
|
-
|
20
|
|
149,479
|
|
|
158,347
|
|
||
Tradenames
|
5
|
-
|
89
|
|
7,000
|
|
|
16,150
|
|
||
Other
|
5
|
-
|
89
|
|
26,927
|
|
|
25,103
|
|
||
|
|
|
|
|
400,052
|
|
|
415,024
|
|
||
Less: accumulated amortization:
|
|
|
|
|
|
|
|
||||
Covenants-not-to-compete
|
|
|
|
|
198,610
|
|
|
195,536
|
|
||
Customer relationships
|
|
|
|
|
83,047
|
|
|
75,199
|
|
||
Tradenames
|
|
|
|
|
123
|
|
|
9,194
|
|
||
Other
|
|
|
|
|
8,067
|
|
|
5,504
|
|
||
|
|
|
|
|
289,847
|
|
|
285,433
|
|
||
|
|
|
|
|
|
|
|
||||
Amortizing intangibles, net
|
|
|
|
|
110,205
|
|
|
129,591
|
|
||
|
|
|
|
|
|
|
|
||||
Non-amortizing intangibles:
|
|
|
|
|
|
|
|
||||
Tradenames
|
|
|
Indefinite
|
|
310,197
|
|
|
293,474
|
|
||
Other
|
|
|
Indefinite
|
|
10,765
|
|
|
10,765
|
|
||
Non-amortizing intangibles
|
|
|
|
|
320,962
|
|
|
304,239
|
|
||
|
|
|
|
|
|
|
|
||||
Intangible assets, net — included in Deferred charges and other assets
|
|
$
|
431,167
|
|
|
$
|
433,830
|
|
2020
|
$
|
7,239
|
|
2021
|
7,140
|
|
|
2022
|
5,975
|
|
|
2023
|
5,584
|
|
|
2024
|
5,439
|
|
|
Total estimated amortization expense
|
$
|
31,377
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
United States
|
$
|
441,579
|
|
|
$
|
399,123
|
|
|
$
|
347,680
|
|
Foreign
|
22,853
|
|
|
42,609
|
|
|
52,578
|
|
|||
|
$
|
464,432
|
|
|
$
|
441,732
|
|
|
$
|
400,258
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Current:
|
|
|
|
|
|
|
|
|
|||
United States
|
$
|
51,664
|
|
|
$
|
18,138
|
|
|
$
|
154,128
|
|
Foreign
|
7,059
|
|
|
10,541
|
|
|
12,187
|
|
|||
State
|
12,908
|
|
|
6,974
|
|
|
4,934
|
|
|||
Total current income taxes
|
71,631
|
|
|
35,653
|
|
|
171,249
|
|
|||
Deferred:
|
|
|
|
|
|
|
|
|
|||
United States
|
$
|
12,973
|
|
|
$
|
(48,565
|
)
|
|
$
|
(314,389
|
)
|
Foreign
|
(571
|
)
|
|
386
|
|
|
618
|
|
|||
State
|
10,628
|
|
|
6,700
|
|
|
(4,067
|
)
|
|||
Total deferred income taxes
|
23,030
|
|
|
(41,479
|
)
|
|
(317,838
|
)
|
|||
Total income taxes
|
$
|
94,661
|
|
|
$
|
(5,826
|
)
|
|
$
|
(146,589
|
)
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Computed tax provision at the applicable federal statutory income tax rate
|
$
|
97,531
|
|
|
$
|
92,764
|
|
|
$
|
140,090
|
|
State and local taxes, net of federal income tax benefits
|
20,081
|
|
|
10,146
|
|
|
8,216
|
|
|||
Foreign jurisdiction differences
|
1,646
|
|
|
2,377
|
|
|
(6,782
|
)
|
|||
Permanent differences associated with divestitures
|
1,288
|
|
|
790
|
|
|
1,925
|
|
|||
Changes in uncertain tax positions and audit settlements
|
(9,842
|
)
|
|
(88,687
|
)
|
|
(105,821
|
)
|
|||
Foreign valuation allowance, net of federal income tax benefits
|
43
|
|
|
(431
|
)
|
|
1,186
|
|
|||
Enactment of U.S. Tax Act
|
—
|
|
|
(16,105
|
)
|
|
(146,160
|
)
|
|||
Excess tax benefit from share-based compensation
|
(13,868
|
)
|
|
(11,159
|
)
|
|
(18,521
|
)
|
|||
Other
|
(2,218
|
)
|
|
4,479
|
|
|
(20,722
|
)
|
|||
Provision (benefit from) for income taxes
|
$
|
94,661
|
|
|
$
|
(5,826
|
)
|
|
$
|
(146,589
|
)
|
Total consolidated effective tax rate
|
20.4
|
%
|
|
(1.3
|
)%
|
|
(36.6
|
)%
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Inventories and cemetery property
|
$
|
(212,498
|
)
|
|
$
|
(220,537
|
)
|
Deferred incremental direct selling costs
|
(76,692
|
)
|
|
(73,696
|
)
|
||
Property and equipment
|
(139,548
|
)
|
|
(122,281
|
)
|
||
Intangibles
|
(199,906
|
)
|
|
(197,815
|
)
|
||
Other
|
(1,893
|
)
|
|
—
|
|
||
Deferred tax liabilities
|
(630,537
|
)
|
|
(614,329
|
)
|
||
Loss and tax credit carryforwards
|
143,391
|
|
|
153,688
|
|
||
Deferred revenue on preneed funeral and cemetery contracts
|
113,171
|
|
|
113,970
|
|
||
Accrued liabilities
|
67,489
|
|
|
63,558
|
|
||
Other
|
—
|
|
|
90
|
|
||
Deferred tax assets
|
324,051
|
|
|
331,306
|
|
||
Less: valuation allowance
|
(114,331
|
)
|
|
(120,931
|
)
|
||
Net deferred income tax liability
|
$
|
(420,817
|
)
|
|
$
|
(403,954
|
)
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Non-current deferred tax assets
|
$
|
665
|
|
|
$
|
673
|
|
Non-current deferred tax liabilities
|
(421,482
|
)
|
|
(404,627
|
)
|
||
Net deferred income tax liability
|
$
|
(420,817
|
)
|
|
$
|
(403,954
|
)
|
|
Federal, State, and Foreign Tax
|
||
|
(In thousands)
|
||
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
|
|
Reductions to tax positions related to prior years
|
—
|
|
|
Balance at December 31, 2019
|
$
|
1,348
|
|
|
Federal
|
|
State
|
|
Foreign
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
2020
|
$
|
—
|
|
|
$
|
172,219
|
|
|
$
|
—
|
|
|
$
|
172,219
|
|
2021
|
—
|
|
|
150,106
|
|
|
—
|
|
|
150,106
|
|
||||
2022
|
—
|
|
|
78,589
|
|
|
—
|
|
|
78,589
|
|
||||
2023
|
—
|
|
|
228,210
|
|
|
—
|
|
|
228,210
|
|
||||
Thereafter
|
1,211
|
|
|
1,828,046
|
|
|
11,147
|
|
|
1,840,404
|
|
||||
Total
|
$
|
1,211
|
|
|
$
|
2,457,170
|
|
|
$
|
11,147
|
|
|
$
|
2,469,528
|
|
|
Federal
|
|
State
|
|
Foreign
|
|
Total
|
||||||||
|
|
|
(In thousands)
|
|
|
||||||||||
Loss and tax credit carryforwards
|
$
|
254
|
|
|
$
|
136,133
|
|
|
$
|
7,004
|
|
|
$
|
143,391
|
|
Valuation allowance
|
$
|
—
|
|
|
$
|
93,982
|
|
|
$
|
20,349
|
|
|
$
|
114,331
|
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
4.5% Senior Notes due November 2020
|
$
|
—
|
|
|
$
|
200,000
|
|
8.0% Senior Notes due November 2021
|
150,000
|
|
|
150,000
|
|
||
5.375% Senior Notes due January 2022
|
—
|
|
|
425,000
|
|
||
5.375% Senior Notes due May 2024
|
850,000
|
|
|
850,000
|
|
||
7.5% Senior Notes due April 2027
|
153,465
|
|
|
200,000
|
|
||
4.625% Senior Notes due December 2027
|
550,000
|
|
|
550,000
|
|
||
5.125% Senior Notes due June 2029
|
750,000
|
|
|
—
|
|
||
Term Loan due December 2022
|
—
|
|
|
641,250
|
|
||
Term Loan due May 2024
|
633,750
|
|
|
—
|
|
||
Bank Credit Facility due December 2022
|
—
|
|
|
395,000
|
|
||
Bank Credit Facility due May 2024
|
295,000
|
|
|
—
|
|
||
Obligations under finance leases
|
185,252
|
|
|
211,952
|
|
||
Mortgage notes and other debt, maturities through 2050
|
45,104
|
|
|
4,076
|
|
||
Unamortized premiums and discounts, net
|
5,634
|
|
|
6,562
|
|
||
Unamortized debt issuance costs
|
(34,854
|
)
|
|
(31,762
|
)
|
||
Total debt
|
3,583,351
|
|
|
3,602,078
|
|
||
Less: Current maturities of long-term debt
|
(69,821
|
)
|
|
(69,896
|
)
|
||
Total long-term debt
|
$
|
3,513,530
|
|
|
$
|
3,532,182
|
|
2020
|
$
|
73,912
|
|
2021
|
244,931
|
|
|
2022
|
60,322
|
|
|
2023
|
69,898
|
|
|
2024
|
1,659,084
|
|
|
2025 and thereafter
|
1,504,424
|
|
|
Total debt maturities
|
$
|
3,612,571
|
|
•
|
$750.0 million unsecured 5.125% Senior Notes due June 2029;
|
•
|
$55.0 million on our Bank Credit Facility due December 2022;
|
•
|
$295.0 million on our Bank Credit Facility due May 2024; and
|
•
|
$49.3 million in additional proceeds from certain members of the syndicate of banks in our Bank Credit Facility.
|
•
|
$450.0 million in aggregate principal of our Bank Credit Facility due December 2022;
|
•
|
$8.5 million in aggregate principal of our Term Loan due December 2022;
|
•
|
$32.1 million in aggregate principal payments to other members of our Term Loan due December 2022;
|
•
|
$16.3 million in aggregate principal of our Term Loan due May 2024;
|
•
|
$425.0 million in aggregate principal of 5.375% Senior Notes due January 2022;
|
•
|
$200.0 million in aggregate principal of 4.5% Senior Notes due November 2020;
|
•
|
$46.5 million in aggregate principal of 7.5% Senior Notes due April 2027;
|
•
|
$11.5 million of premiums paid on early extinguishment; and
|
•
|
$0.3 million in other debt.
|
•
|
$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.
|
Payments in 2019
|
$
|
190,672
|
|
Payments in 2018
|
$
|
179,865
|
|
Payments in 2017
|
$
|
160,843
|
|
Payments in 2020
|
$
|
169,519
|
|
Payments in 2021
|
166,382
|
|
|
Payments in 2022
|
154,506
|
|
|
Payments in 2023
|
153,727
|
|
|
Payments in 2024
|
108,640
|
|
|
Payments in 2025 and thereafter
|
274,871
|
|
|
Total expected cash interest payments
|
$
|
1,027,645
|
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
4.5% Senior Notes due November 2020
|
$
|
—
|
|
|
$
|
198,930
|
|
8.0% Senior Notes due November 2021
|
165,375
|
|
|
160,800
|
|
||
5.375% Senior Notes due January 2022
|
—
|
|
|
428,188
|
|
||
5.375% Senior Notes due May 2024
|
879,606
|
|
|
851,275
|
|
||
7.5% Notes due April 2027
|
188,381
|
|
|
214,940
|
|
||
4.625% Senior Notes due December 2027
|
577,500
|
|
|
517,077
|
|
||
5.125% Senior Notes due June 2029
|
798,525
|
|
|
—
|
|
||
Term Loan due December 2022
|
—
|
|
|
629,579
|
|
||
Term Loan due May 2024
|
633,750
|
|
|
—
|
|
||
Bank Credit Facility due December 2022
|
—
|
|
|
387,061
|
|
||
Bank Credit Facility due May 2024
|
295,000
|
|
|
—
|
|
||
Mortgage notes and other debt, maturities through 2050
|
45,104
|
|
|
4,076
|
|
||
Total fair value of debt instruments
|
$
|
3,583,241
|
|
|
$
|
3,391,926
|
|
|
Operating
|
|
Finance
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
2020
|
$
|
11,098
|
|
|
$
|
45,182
|
|
|
$
|
56,280
|
|
2021
|
10,253
|
|
|
63,840
|
|
|
74,093
|
|
|||
2022
|
8,703
|
|
|
27,764
|
|
|
36,467
|
|
|||
2023
|
6,394
|
|
|
20,317
|
|
|
26,711
|
|
|||
2024
|
5,366
|
|
|
24,774
|
|
|
30,140
|
|
|||
2025 and thereafter
|
40,364
|
|
|
24,594
|
|
|
64,958
|
|
|||
Total lease payments
|
$
|
82,178
|
|
|
$
|
206,471
|
|
|
$
|
288,649
|
|
Less: Interest
|
(21,549
|
)
|
|
(21,219
|
)
|
|
(42,768
|
)
|
|||
Present value of lease liabilities
|
$
|
60,629
|
|
|
$
|
185,252
|
|
|
$
|
245,881
|
|
Amortization of leased assets
|
$
|
42,147
|
|
Interest on lease liabilities
|
6,882
|
|
|
Total finance lease cost
|
49,029
|
|
|
Operating lease cost
|
12,502
|
|
|
Variable lease cost
|
1,089
|
|
|
Total lease cost
|
$
|
62,620
|
|
Lease Type
|
|
Balance Sheet Classification
|
|
December 31, 2019
|
||
|
|
(In thousands)
|
||||
Operating lease right-of-use assets (1)
|
|
Deferred charges and other assets
|
|
$
|
58,101
|
|
Finance lease right-of-use assets (1)
|
|
Property and equipment, net
|
|
179,538
|
|
|
Total right-of-use assets (1)
|
|
|
|
$
|
237,639
|
|
|
|
|
|
|
||
Operating
|
|
Accounts payable and accrued liabilities
|
|
$
|
8,538
|
|
Finance
|
|
Current maturities of long-term debt
|
|
39,428
|
|
|
Total current lease liabilities
|
|
|
|
47,966
|
|
|
Operating
|
|
Other liabilities
|
|
52,091
|
|
|
Finance
|
|
Long-term debt
|
|
145,824
|
|
|
Total non-current lease liabilities
|
|
|
|
197,915
|
|
|
Total lease liabilities
|
|
|
|
$
|
245,881
|
|
|
Operating
|
|
Finance
|
Weighted-average remaining lease term (years)
|
12.4
|
|
4.9
|
Weighted-average discount rate
|
4.6%
|
|
3.5%
|
Cash paid for amounts in the measurement of lease liabilities
|
|
||
Operating cash flows for operating leases
|
$
|
12,568
|
|
Operating cash flows for finance leases
|
7,472
|
|
|
Financing cash flows for finance leases
|
42,627
|
|
|
Total cash paid for amounts included in the measurement of lease liabilities
|
$
|
62,667
|
|
|
|
||
Right-of-use assets obtained in exchange for finance lease liabilities
|
$
|
48,233
|
|
Right-of-use assets obtained in exchange for operating lease liabilities
|
$
|
10,925
|
|
2020
|
$
|
1,744
|
|
2021
|
1,428
|
|
|
2022
|
1,053
|
|
|
2023
|
436
|
|
|
2024
|
77
|
|
|
Thereafter
|
139
|
|
|
Total expected cash receipts
|
$
|
4,877
|
|
|
Operating (1)
|
|
Capital (1)
|
||||
|
(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)
|
||||||||||||||
2020
|
$
|
1,968
|
|
|
$
|
1,020
|
|
|
$
|
5,172
|
|
|
$
|
8,160
|
|
2021
|
1,296
|
|
|
603
|
|
|
4,289
|
|
|
6,188
|
|
||||
2022
|
399
|
|
|
444
|
|
|
3,363
|
|
|
4,206
|
|
||||
2023
|
123
|
|
|
165
|
|
|
2,461
|
|
|
2,749
|
|
||||
2024
|
8
|
|
|
48
|
|
|
1,983
|
|
|
2,039
|
|
||||
2025 and thereafter
|
—
|
|
|
171
|
|
|
4,702
|
|
|
4,873
|
|
||||
Total
|
$
|
3,794
|
|
|
$
|
2,451
|
|
|
$
|
21,970
|
|
|
$
|
28,215
|
|
|
|
Years Ended December 31,
|
||||
Assumptions
|
|
2019
|
|
2018
|
|
2017
|
Dividend yield
|
|
1.7%
|
|
1.8%
|
|
2.0%
|
Expected volatility
|
|
19.8%
|
|
18.5%
|
|
19.0%
|
Risk-free interest rate
|
|
2.5%
|
|
2.4%
|
|
1.6%
|
Expected holding period (years)
|
|
4.0
|
|
4.0
|
|
4.0
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Total pretax employee share-based compensation expense included in net income
|
$
|
15,029
|
|
|
$
|
15,626
|
|
|
$
|
14,788
|
|
Income tax benefit related to share-based compensation included in net income
|
$
|
3,842
|
|
|
$
|
3,998
|
|
|
$
|
5,416
|
|
|
Options
|
|
|
Weighted-Average
Exercise Price
|
|
|
Outstanding at December 31, 2018
|
8,917,943
|
|
|
$
|
23.40
|
|
Granted
|
785,150
|
|
|
$
|
42.63
|
|
Exercised
|
(2,393,647
|
)
|
|
$
|
17.10
|
|
Outstanding at December 31, 2019
|
7,309,446
|
|
|
$
|
27.53
|
|
Exercisable at December 31, 2019
|
5,397,573
|
|
|
$
|
23.90
|
|
|
|
Options Outstanding
|
|
Options Exercisable
|
||||||||||||
Range of Exercise Price
|
|
Number
Outstanding at
December 31, 2019
|
|
|
Weighted-Average Remaining Contractual Life
(in years)
|
|
Weighted-
Average Exercise Price
|
|
|
Number
Exercisable at
December 31, 2019
|
|
|
Weighted-
Average Exercise Price
|
|
||
$10.00 — 20.00
|
|
1,239,011
|
|
|
1.8
|
|
$
|
16.77
|
|
|
1,239,011
|
|
|
$
|
16.77
|
|
$20.01 — 30.00
|
|
4,096,760
|
|
|
4.2
|
|
$
|
24.99
|
|
|
3,666,044
|
|
|
$
|
24.49
|
|
$30.01 — 40.00
|
|
1,188,525
|
|
|
6.1
|
|
$
|
37.50
|
|
|
492,518
|
|
|
$
|
37.50
|
|
$40.01 — 50.00
|
|
785,150
|
|
|
7.1
|
|
$
|
42.63
|
|
|
—
|
|
|
$
|
—
|
|
$0.00 — 50.00
|
|
7,309,446
|
|
|
4.4
|
|
$
|
27.53
|
|
|
5,397,573
|
|
|
$
|
23.90
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Weighted average grant-date fair value of stock options granted
|
$
|
6.86
|
|
|
$
|
5.52
|
|
|
$
|
3.90
|
|
Total fair value of stock options vested
|
$
|
7,250
|
|
|
$
|
6,857
|
|
|
$
|
7,425
|
|
Total intrinsic value of stock options exercised
|
$
|
65,023
|
|
|
$
|
48,643
|
|
|
$
|
56,946
|
|
Cash received from the exercise of stock options
|
$
|
40,922
|
|
|
$
|
24,517
|
|
|
$
|
33,611
|
|
Recognized compensation expense
|
$
|
6,314
|
|
|
$
|
6,648
|
|
|
$
|
6,909
|
|
|
Restricted
Share Awards
|
|
|
Weighted-Average
Grant-Date
Fair Value
|
|
|
Nonvested restricted share awards at December 31, 2018
|
389,245
|
|
|
$
|
31.67
|
|
Granted
|
125,546
|
|
|
$
|
42.73
|
|
Vested
|
(226,726
|
)
|
|
$
|
29.63
|
|
Nonvested restricted share awards at December 31, 2019
|
288,065
|
|
|
$
|
38.09
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Recognized compensation expense related to restricted share awards
|
$
|
6,000
|
|
|
$
|
6,063
|
|
|
$
|
5,564
|
|
Weighted-average grant date fair value for nonvested restricted stock granted
|
$
|
42.73
|
|
|
$
|
37.50
|
|
|
$
|
29.28
|
|
Total fair market value of restricted share awards vested
|
$
|
6,718
|
|
|
$
|
5,702
|
|
|
$
|
5,463
|
|
Aggregate intrinsic value of restricted share awards vested
|
$
|
3,724
|
|
|
$
|
3,578
|
|
|
$
|
4,454
|
|
|
Restricted
Share Units
|
|
|
Weighted-Average
Grant-Date
Fair Value
|
|
|
Nonvested restricted share units at December 31, 2018
|
175,301
|
|
|
$
|
31.17
|
|
Granted
|
72,067
|
|
|
$
|
40.91
|
|
Vested
|
(95,459
|
)
|
|
$
|
29.62
|
|
Forfeited and other
|
(457
|
)
|
|
$
|
27.94
|
|
Nonvested restricted share units at December 31, 2019
|
151,452
|
|
|
$
|
36.79
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Recognized compensation expense related to restricted share units
|
$
|
2,715
|
|
|
$
|
2,862
|
|
|
$
|
2,052
|
|
Weighted-average grant date fair value for nonvested restricted share units granted
|
$
|
40.91
|
|
|
$
|
35.89
|
|
|
$
|
27.94
|
|
Total fair market value of restricted share units vested
|
$
|
2,827
|
|
|
$
|
1,946
|
|
|
$
|
1,239
|
|
Aggregate intrinsic value of restricted share units vested
|
$
|
1,432
|
|
|
$
|
970
|
|
|
$
|
558
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Interest cost on projected benefit obligation
|
$
|
956
|
|
|
$
|
923
|
|
|
$
|
1,067
|
|
Recognized net actuarial losses (gains)
|
2,886
|
|
|
(1,127
|
)
|
|
879
|
|
|||
Total net periodic benefit cost
|
$
|
3,842
|
|
|
$
|
(204
|
)
|
|
$
|
1,946
|
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Change in Benefit Obligation:
|
|
|
|
|
|
||
Benefit obligation at beginning of year
|
$
|
24,707
|
|
|
$
|
28,681
|
|
Interest cost
|
956
|
|
|
923
|
|
||
Actuarial loss (gain)
|
2,886
|
|
|
(1,127
|
)
|
||
Benefits paid
|
(3,588
|
)
|
|
(3,770
|
)
|
||
Benefit obligation at end of year
|
$
|
24,961
|
|
|
$
|
24,707
|
|
Change in Plan Assets:
|
|
|
|
|
|
||
Fair value of plan assets at beginning of year
|
$
|
—
|
|
|
$
|
—
|
|
Employer contributions
|
3,588
|
|
|
3,770
|
|
||
Benefits paid, including expenses
|
(3,588
|
)
|
|
(3,770
|
)
|
||
Fair value of plan assets at end of year
|
$
|
—
|
|
|
$
|
—
|
|
Funded status of plan
|
$
|
(24,961
|
)
|
|
$
|
(24,707
|
)
|
|
|
|
|
||||
Funding Summary:
|
|
|
|
|
|
||
Projected benefit obligations
|
$
|
24,961
|
|
|
$
|
24,707
|
|
Accumulated benefit obligation
|
$
|
24,961
|
|
|
$
|
24,707
|
|
Amounts Recognized in the Consolidated Balance Sheet:
|
|
|
|
|
|
||
Included in Accounts payable and accrued liabilities
|
$
|
(2,708
|
)
|
|
$
|
(3,175
|
)
|
Included in Other liabilities
|
(22,253
|
)
|
|
(21,532
|
)
|
||
Total accrued benefit liability
|
$
|
(24,961
|
)
|
|
$
|
(24,707
|
)
|
|
Years Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Weighted-average discount rate used to determine obligations
|
2.95
|
%
|
|
4.13
|
%
|
|
3.41
|
%
|
Weighted-average discount rate used to determine net periodic benefit cost
|
4.15
|
%
|
|
3.26
|
%
|
|
3.86
|
%
|
2020
|
$
|
2,742
|
|
2021
|
2,410
|
|
|
2022
|
2,337
|
|
|
2023
|
2,095
|
|
|
2024
|
1,902
|
|
|
Years 2025 through 2029
|
8,335
|
|
|
Total expected benefit payments
|
$
|
19,821
|
|
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
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Revenue from customers:
|
|
|
|
|
|
||||||
Funeral revenue:
|
|
|
|
|
|
||||||
Atneed revenue
|
$
|
996,643
|
|
|
$
|
998,464
|
|
|
$
|
1,011,214
|
|
Matured preneed revenue
|
605,237
|
|
|
600,944
|
|
|
574,235
|
|
|||
Core funeral revenue
|
1,601,880
|
|
|
1,599,408
|
|
|
1,585,449
|
|
|||
Non-funeral home revenue
|
52,211
|
|
|
49,671
|
|
|
46,513
|
|
|||
Recognized preneed revenue
|
139,525
|
|
|
125,144
|
|
|
117,352
|
|
|||
Other revenue
|
130,286
|
|
|
123,769
|
|
|
118,838
|
|
|||
Total funeral revenue
|
1,923,902
|
|
|
1,897,992
|
|
|
1,868,152
|
|
|||
Cemetery revenue:
|
|
|
|
|
|
||||||
Atneed revenue
|
326,230
|
|
|
323,162
|
|
|
319,899
|
|
|||
Recognized preneed property revenue
|
581,724
|
|
|
572,955
|
|
|
538,314
|
|
|||
Recognized preneed merchandise and services revenue
|
287,589
|
|
|
288,282
|
|
|
274,885
|
|
|||
Core cemetery revenue
|
1,195,543
|
|
|
1,184,399
|
|
|
1,133,098
|
|
|||
Other revenue
|
111,340
|
|
|
107,783
|
|
|
93,781
|
|
|||
Total cemetery revenue
|
1,306,883
|
|
|
1,292,182
|
|
|
1,226,879
|
|
|||
Total revenue from customers
|
$
|
3,230,785
|
|
|
$
|
3,190,174
|
|
|
$
|
3,095,031
|
|
Gross profit:
|
|
|
|
|
|
||||||
Funeral gross profit
|
$
|
372,638
|
|
|
$
|
369,613
|
|
|
$
|
371,853
|
|
Cemetery gross profit
|
387,942
|
|
|
390,709
|
|
|
350,926
|
|
|||
Gross profit from reportable segments
|
760,580
|
|
|
760,322
|
|
|
722,779
|
|
|||
Corporate general and administrative expenses
|
(126,886
|
)
|
|
(145,596
|
)
|
|
(158,651
|
)
|
|||
Gains on divestitures and impairment charges, net
|
32,919
|
|
|
15,933
|
|
|
7,015
|
|
|||
Operating income
|
666,613
|
|
|
630,659
|
|
|
571,143
|
|
|||
Interest expense
|
(185,843
|
)
|
|
(181,556
|
)
|
|
(169,125
|
)
|
|||
Losses on early extinguishment of debt, net
|
(16,637
|
)
|
|
(10,131
|
)
|
|
(274
|
)
|
|||
Other income (expense), net
|
299
|
|
|
2,760
|
|
|
(1,486
|
)
|
|||
Income before income taxes
|
$
|
464,432
|
|
|
$
|
441,732
|
|
|
$
|
400,258
|
|
|
Reportable Segments
|
|
|
|
|
||||||||||
|
Funeral
|
|
Cemetery
|
|
Corporate
|
|
Consolidated
|
||||||||
|
(In thousands)
|
||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest expense
|
$
|
4,026
|
|
|
$
|
659
|
|
|
$
|
181,158
|
|
|
$
|
185,843
|
|
Depreciation and amortization
|
$
|
106,982
|
|
|
$
|
33,323
|
|
|
$
|
10,695
|
|
|
$
|
151,000
|
|
Amortization of intangibles
|
$
|
15,343
|
|
|
$
|
10,297
|
|
|
$
|
9
|
|
|
$
|
25,649
|
|
Amortization of cemetery property
|
$
|
—
|
|
|
$
|
70,330
|
|
|
$
|
—
|
|
|
$
|
70,330
|
|
Capital expenditures
|
$
|
112,090
|
|
|
$
|
125,365
|
|
|
$
|
2,502
|
|
|
$
|
239,957
|
|
Total assets
|
$
|
5,821,408
|
|
|
$
|
7,483,713
|
|
|
$
|
372,309
|
|
|
$
|
13,677,430
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
||||
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
|
|
|
United States
|
|
Canada
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
2019
|
|
|
|
|
|
|
|
|
|||
Revenue from external customers
|
$
|
3,052,101
|
|
|
$
|
178,684
|
|
|
$
|
3,230,785
|
|
Interest expense
|
$
|
185,512
|
|
|
$
|
331
|
|
|
$
|
185,843
|
|
Depreciation and amortization
|
$
|
142,550
|
|
|
$
|
8,450
|
|
|
$
|
151,000
|
|
Amortization of intangibles
|
$
|
25,079
|
|
|
$
|
570
|
|
|
$
|
25,649
|
|
Amortization of cemetery property
|
$
|
66,552
|
|
|
$
|
3,778
|
|
|
$
|
70,330
|
|
Operating income
|
$
|
628,204
|
|
|
$
|
38,409
|
|
|
$
|
666,613
|
|
Gains (losses) on divestitures and impairment charges, net
|
$
|
33,200
|
|
|
$
|
(281
|
)
|
|
$
|
32,919
|
|
Long-lived assets
|
$
|
6,531,705
|
|
|
$
|
301,461
|
|
|
$
|
6,833,166
|
|
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
|
|
|
|
|
|
|
|
|
|||
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
|
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Cash and cash equivalents:
|
|
|
|
|
|
||
Cash
|
$
|
149,981
|
|
|
$
|
177,338
|
|
Commercial paper and temporary investments
|
36,295
|
|
|
21,512
|
|
||
|
$
|
186,276
|
|
|
$
|
198,850
|
|
Receivables, net:
|
|
|
|
|
|
||
Notes receivable
|
$
|
1,765
|
|
|
$
|
1,781
|
|
Atneed funeral receivables, net of allowances of $1,884 and $1,412, respectively
|
39,471
|
|
|
39,709
|
|
||
Atneed cemetery receivables, net of allowances of $346 and $166, respectively
|
21,131
|
|
|
15,277
|
|
||
Other
|
19,304
|
|
|
17,058
|
|
||
|
$
|
81,671
|
|
|
$
|
73,825
|
|
Other current assets:
|
|
|
|
|
|
||
Income tax receivable
|
$
|
5,905
|
|
|
$
|
8,333
|
|
Prepaid insurance
|
4,451
|
|
|
5,047
|
|
||
Restricted Cash
|
54,293
|
|
|
7,007
|
|
||
Other
|
15,839
|
|
|
13,220
|
|
||
|
$
|
80,488
|
|
|
$
|
33,607
|
|
Cemetery property:
|
|
|
|
|
|
||
Undeveloped land
|
$
|
1,233,363
|
|
|
$
|
1,209,109
|
|
Developed lots, lawn crypts, mausoleum spaces, cremation niches, and cremation memorialization property
|
640,239
|
|
|
628,355
|
|
||
|
$
|
1,873,602
|
|
|
$
|
1,837,464
|
|
Property and equipment, net:
|
|
|
|
|
|
||
Land
|
$
|
642,168
|
|
|
$
|
631,679
|
|
Buildings and improvements
|
2,221,758
|
|
|
2,107,300
|
|
||
Operating equipment
|
499,700
|
|
|
609,658
|
|
||
Leasehold improvements
|
40,879
|
|
|
34,755
|
|
||
Finance leases
|
350,626
|
|
|
263,940
|
|
||
|
3,755,131
|
|
|
3,647,332
|
|
||
Less: Accumulated depreciation
|
(1,518,610
|
)
|
|
(1,525,059
|
)
|
||
Less: Accumulated amortization of finance leases
|
(171,088
|
)
|
|
(144,909
|
)
|
||
|
$
|
2,065,433
|
|
|
$
|
1,977,364
|
|
Deferred charges and other assets:
|
|
|
|
|
|
||
Intangible assets, net
|
$
|
431,167
|
|
|
$
|
433,830
|
|
Restricted cash(1)
|
2,051
|
|
|
1,727
|
|
||
Deferred tax assets
|
665
|
|
|
673
|
|
||
Notes receivable, net of allowances of $8,374 and $10,814, respectively
|
6,623
|
|
|
8,651
|
|
||
Cash surrender value of insurance policies
|
176,126
|
|
|
145,981
|
|
||
Deferred incremental direct selling costs
|
293,125
|
|
|
282,283
|
|
||
Operating leases
|
58,101
|
|
|
—
|
|
||
Other
|
62,050
|
|
|
61,006
|
|
||
|
$
|
1,029,908
|
|
|
$
|
934,151
|
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Accounts payable and accrued liabilities:
|
|
|
|
|
|
||
Accounts payable
|
$
|
174,494
|
|
|
$
|
173,361
|
|
Accrued benefits
|
99,396
|
|
|
90,303
|
|
||
Accrued interest
|
15,390
|
|
|
25,976
|
|
||
Accrued property taxes
|
16,402
|
|
|
18,512
|
|
||
Self-insurance reserves
|
84,290
|
|
|
80,114
|
|
||
Bank overdrafts
|
16,694
|
|
|
16,221
|
|
||
Operating leases
|
8,538
|
|
|
—
|
|
||
Other accrued liabilities
|
63,341
|
|
|
75,281
|
|
||
|
$
|
478,545
|
|
|
$
|
479,768
|
|
Other liabilities:
|
|
|
|
|
|
||
Accrued benefit costs
|
$
|
22,253
|
|
|
$
|
21,532
|
|
Deferred compensation
|
152,119
|
|
|
126,891
|
|
||
Customer refund obligation reserve
|
46,958
|
|
|
48,000
|
|
||
Tax liability
|
2,004
|
|
|
1,873
|
|
||
Payable to perpetual care trust
|
93,053
|
|
|
88,784
|
|
||
Operating leases
|
52,091
|
|
|
—
|
|
||
Other
|
9,596
|
|
|
10,222
|
|
||
|
$
|
378,074
|
|
|
$
|
297,302
|
|
(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,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Net change in capital expenditure accrual
|
$
|
4,435
|
|
|
$
|
(2,597
|
)
|
|
$
|
223
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands, except per share amounts)
|
||||||||||
Amounts attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|||
Net income — basic
|
$
|
369,596
|
|
|
$
|
447,208
|
|
|
$
|
546,663
|
|
After tax interest on convertible debt
|
—
|
|
|
—
|
|
|
52
|
|
|||
Net income — diluted
|
$
|
369,596
|
|
|
$
|
447,208
|
|
|
$
|
546,715
|
|
Weighted average shares:
|
|
|
|
|
|
|
|
|
|||
Weighted average shares — basic
|
182,246
|
|
|
182,447
|
|
|
187,630
|
|
|||
Stock options
|
3,223
|
|
|
4,339
|
|
|
4,396
|
|
|||
Restricted share units
|
54
|
|
|
186
|
|
|
99
|
|
|||
Convertible debt
|
—
|
|
|
—
|
|
|
121
|
|
|||
Weighted average shares — diluted
|
185,523
|
|
|
186,972
|
|
|
192,246
|
|
|||
Amounts attributable to common stockholders:
|
|
|
|
|
|
||||||
Net income per share:
|
|
|
|
|
|
|
|
|
|||
Basic
|
$
|
2.03
|
|
|
$
|
2.45
|
|
|
$
|
2.91
|
|
Diluted
|
$
|
1.99
|
|
|
$
|
2.39
|
|
|
$
|
2.84
|
|
|
Years Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
|
(In thousands)
|
|||||||
Antidilutive options
|
678
|
|
|
1,035
|
|
|
911
|
|
•
|
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
|
$
|
3,388
|
|
Cemetery property
|
32,266
|
|
|
Property and equipment
|
25,896
|
|
|
Preneed receivables, net and trust investments
|
107,444
|
|
|
Finite-lived intangible assets
|
32,371
|
|
|
Indefinite-lived intangible assets
|
18,000
|
|
|
Deferred charges and other assets
|
1,717
|
|
|
Cemetery perpetual care trust investments
|
52,747
|
|
|
Goodwill
|
37,908
|
|
|
Total assets acquired
|
$
|
311,737
|
|
Current liabilities
|
7,666
|
|
|
Deferred revenue and deferred receipts held in trust
|
113,173
|
|
|
Deferred income taxes
|
4,704
|
|
|
Other liabilities
|
1,439
|
|
|
Care trusts' corpus
|
52,747
|
|
|
Total liabilities assumed
|
179,729
|
|
|
Net assets acquired
|
$
|
132,008
|
|
Increase in the fair value of other current assets
|
$
|
(67
|
)
|
Increase in the fair value of cemetery property
|
(3,583
|
)
|
|
Increase in property and equipment, net
|
(179
|
)
|
|
Increase in the fair value of preneed receivables, net and trust investments
|
(4,910
|
)
|
|
Decrease in the fair value of finite-lived intangible assets
|
10,428
|
|
|
Increase in the fair value of current liabilities
|
3,075
|
|
|
Decrease in the fair value of deferred revenue and deferred receipts held in trust
|
(7,349
|
)
|
|
Decrease in the fair value of deferred income taxes
|
(7,026
|
)
|
|
Increase in the fair value of other liabilities
|
1,439
|
|
|
Total adjustment to goodwill
|
$
|
(8,172
|
)
|
|
Useful life
|
|
|
||||
|
Minimum
|
|
Maximum
|
|
Fair Value
|
||
|
(Years)
|
|
(In thousands)
|
||||
Other preneed customer relationships
|
10
|
|
20
|
|
$
|
9,347
|
|
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
|
|
|
|
|
$
|
50,371
|
|
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
|
(unaudited)
|
||||||
Revenue
|
$
|
32,434
|
|
|
$
|
29,193
|
|
Net income
|
$
|
4,669
|
|
|
$
|
2,531
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Gains on divestitures, net
|
$
|
41,835
|
|
|
$
|
20,340
|
|
|
$
|
29,053
|
|
Impairment losses
|
(8,916
|
)
|
|
(4,407
|
)
|
|
(22,038
|
)
|
|||
Gains on divestitures and impairment charges, net
|
$
|
32,919
|
|
|
$
|
15,933
|
|
|
$
|
7,015
|
|
|
First
Quarter
|
|
|
Second
Quarter
|
|
|
Third
Quarter
|
|
|
Fourth
Quarter
|
|
||||
|
(In thousands, except per share amounts)
|
||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue
|
$
|
798,212
|
|
|
$
|
812,572
|
|
|
$
|
769,241
|
|
|
$
|
850,760
|
|
Costs of revenue
|
$
|
(606,378
|
)
|
|
$
|
(621,426
|
)
|
|
$
|
(609,509
|
)
|
|
$
|
(632,892
|
)
|
Gross profit
|
$
|
191,834
|
|
|
$
|
191,146
|
|
|
$
|
159,732
|
|
|
$
|
217,868
|
|
Operating income
|
$
|
146,978
|
|
|
$
|
150,105
|
|
|
$
|
128,585
|
|
|
$
|
240,945
|
|
Income before income taxes(1)
|
$
|
100,308
|
|
|
$
|
96,083
|
|
|
$
|
72,869
|
|
|
$
|
195,172
|
|
Provision for income taxes
|
$
|
(21,095
|
)
|
|
$
|
(23,570
|
)
|
|
$
|
(1,997
|
)
|
|
$
|
(47,999
|
)
|
Net income
|
$
|
79,213
|
|
|
$
|
72,513
|
|
|
$
|
70,872
|
|
|
$
|
147,173
|
|
Net loss (income) attributable to noncontrolling interests
|
$
|
110
|
|
|
$
|
(184
|
)
|
|
$
|
(80
|
)
|
|
$
|
(21
|
)
|
Net income attributable to common stockholders
|
$
|
79,323
|
|
|
$
|
72,329
|
|
|
$
|
70,792
|
|
|
$
|
147,152
|
|
Net income attributable to common stockholders per share(2):
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic — EPS
|
$
|
0.44
|
|
|
$
|
0.40
|
|
|
$
|
0.39
|
|
|
$
|
0.81
|
|
Diluted — EPS
|
$
|
0.43
|
|
|
$
|
0.39
|
|
|
$
|
0.38
|
|
|
$
|
0.79
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue
|
$
|
794,482
|
|
|
$
|
796,092
|
|
|
$
|
778,786
|
|
|
$
|
820,814
|
|
Costs of revenue
|
$
|
(598,720
|
)
|
|
$
|
(607,965
|
)
|
|
$
|
(612,616
|
)
|
|
$
|
(610,551
|
)
|
Gross 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
|
|
(1)
|
Includes Gains (losses) on divestitures and impairment charges, net, as described in Note 16.
|
(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.
|
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, 2019
|
|
$
|
1,578
|
|
|
$
|
9,146
|
|
|
$
|
(8,494
|
)
|
|
$
|
2,230
|
|
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
|
|
Due After One Year:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Allowance For Doubtful Accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Year Ended December 31, 2019
|
|
$
|
10,814
|
|
|
$
|
—
|
|
|
$
|
(2,440
|
)
|
|
$
|
8,374
|
|
Year Ended December 31, 2018
|
|
$
|
10,946
|
|
|
$
|
—
|
|
|
$
|
(132
|
)
|
|
$
|
10,814
|
|
Year Ended December 31, 2017
|
|
$
|
11,334
|
|
|
$
|
—
|
|
|
$
|
(388
|
)
|
|
$
|
10,946
|
|
Preneed Receivables, Net
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Asset Allowance For Cancellation:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Year Ended December 31, 2019
|
|
$
|
48,380
|
|
|
$
|
1,617
|
|
|
$
|
5,343
|
|
|
$
|
55,340
|
|
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
|
|
Deferred Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue Allowance For Cancellation: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Year Ended December 31, 2019
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Year Ended December 31, 2018
|
|
$
|
(118,099
|
)
|
|
$
|
—
|
|
|
$
|
118,099
|
|
|
$
|
—
|
|
Year Ended December 31, 2017
|
|
$
|
(116,913
|
)
|
|
$
|
—
|
|
|
$
|
(1,186
|
)
|
|
$
|
(118,099
|
)
|
Deferred Tax Valuation Allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Year Ended December 31, 2019
|
|
$
|
120,931
|
|
|
$
|
(6,604
|
)
|
|
$
|
4
|
|
|
$
|
114,331
|
|
Year Ended December 31, 2018
|
|
$
|
141,154
|
|
|
$
|
(20,219
|
)
|
|
$
|
(4
|
)
|
|
$
|
120,931
|
|
Year Ended December 31, 2017
|
|
$
|
132,500
|
|
|
$
|
8,035
|
|
|
$
|
619
|
|
|
$
|
141,154
|
|
(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.
|
|
Plan Category
|
|
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))
|
|
|
|
(a)
|
|
|
(b)
|
|
|
(c)
|
|
||
Equity compensation plans approved by security holders
|
|
7,309,446
|
|
|
$
|
27.53
|
|
|
7,148,871
|
|
|
Exhibit Number
|
|
|
Description
|
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
Exhibit Number
|
|
|
Description
|
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
|
Exhibit Number
|
|
|
Description
|
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
|
—
|
||
101
|
|
—
|
Interactive data file formatted Inline XBRL.
|
104
|
|
—
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
|
|
|
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
|
|
President, Chief Executive Officer,and Chairman of the Board (Principal Executive Officer)
|
|
February 18, 2020
|
||
(Thomas L. Ryan)
|
|
|
|
|||
/s/ ERIC D. TANZBERGER
|
|
Senior Vice President, Chief Financial Officer (Principal Financial Officer)
|
|
February 18, 2020
|
||
(Eric D. Tanzberger)
|
|
|
|
|||
/s/ TAMMY R. MOORE
|
|
Vice President and Corporate Controller (Principal Accounting Officer)
|
|
February 18, 2020
|
||
(Tammy R. Moore)
|
|
|
|
|||
/s/ ANTHONY L. COELHO*
|
|
Lead Independent Director
|
|
February 18, 2020
|
||
(Anthony L. Coelho)
|
|
|
|
|
||
/s/ ALAN R. BUCKWALTER, III*
|
|
Director
|
|
February 18, 2020
|
||
(Alan R. Buckwalter, III)
|
|
|
|
|
||
/s/ JAKKI L. HAUSSLER*
|
|
Director
|
|
February 18, 2020
|
||
(Jakki L. Haussler)
|
|
|
|
|
||
/s/ VICTOR L. LUND*
|
|
Director
|
|
February 18, 2020
|
||
(Victor L. Lund)
|
|
|
|
|
||
/s/ CLIFTON H. MORRIS, JR.*
|
|
Director
|
|
February 18, 2020
|
||
(Clifton H. Morris, Jr.)
|
|
|
|
|
||
/s/ ELLEN OCHOA*
|
|
Director
|
|
February 18, 2020
|
||
(Ellen Ochoa)
|
|
|
|
|
||
/s/ SARA MARTINEZ TUCKER*
|
|
Director
|
|
February 18, 2020
|
||
(Sara Martinez Tucker)
|
|
|
|
|
||
/s/ W. BLAIR WALTRIP*
|
|
Director
|
|
February 18, 2020
|
||
(W. Blair Waltrip)
|
|
|
|
|
||
/s/ MARCUS A. WATTS*
|
|
Director
|
|
February 18, 2020
|
||
(Marcus A. Watts)
|
|
|
|
|
||
*By
|
/s/ GREGORY T. SANGALIS
|
|
|
|
February 18, 2020
|
|
|
(Gregory T. Sangalis, as Attorney-In-Fact
for each of the Persons indicated) |
|
|
|
|
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 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%
|
|
|||||||||
Oaklawn Cemetery Association
|
100%
|
|
|||||||||
WPALM, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC)
|
|||||||||||
Alderwoods (Minnesota), LLC (MN LLC) Florida subsidiary
|
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%
|
|
|||||||||
Ridgewood Cemetery Company, 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%
|
|
|||||||||
|
|||||||||||
KANSAS
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Kansas subsidiary
|
|||||||||||
SCI Kansas Funeral Services, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Kansas subsidiary
|
|||||||||||
Alderwoods (Kansas), Inc.
|
100%
|
|
|
|||||||||||
KENTUCKY
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Kentucky subsidiary
|
|||||||||||
SCI Kentucky Funeral Services, Inc.
|
99%
|
|
|||||||||
|
|||||||||||
LOUISIANA
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Louisiana subsidiary
|
|||||||||||
SCI Louisiana Funeral Services, Inc.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc.
|
100%
|
|
|||||||||
Ballyhoo Innovations, Inc.
|
100%
|
|
|||||||||
Empresas Stewart-Funerarias, Inc.
|
100%
|
|
|||||||||
Enduring Memories, Inc.
|
100%
|
|
|||||||||
Lake Lawn Park, LLC
|
98.4%
|
|
|||||||||
S.E. South-Central, LLC
|
100%
|
|
|||||||||
Stewart Resource Center, LLC
|
100%
|
|
|||||||||
Acme Mausoleum, LLC
|
100%
|
|
|||||||||
S.E. Cemeteries of Louisiana, LLC
|
100%
|
|
|||||||||
Heaven’s Pets at Lakelawn Metairie, LLC
|
60%
|
|
|||||||||
S.E. Funeral Homes of Louisiana, LLC
|
100%
|
|
|||||||||
Stewart Services, LLC
|
100%
|
|
|||||||||
Sympathyshop.com, LLC
|
100%
|
|
|||||||||
Stewart Enterprises (Europe) Inc.
|
100%
|
|
|||||||||
|
|||||||||||
MARYLAND
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Maryland subsidiaries
|
|||||||||||
SCI Maryland Funeral Services, Inc.
|
100%
|
|
|||||||||
Burgee-Henss-Seitz Funeral Home, Inc.
|
100%
|
|
|||||||||
Charles S. Zeiler & Son, Inc.
|
100%
|
|
|||||||||
Gary L. Kaufman Funeral Home at
|
|||||||||||
Meadowridge Memorial Park, Inc.
|
100%
|
|
|||||||||
Gary L. Kaufman Funeral Home Southwest, Inc.
|
100%
|
|
|||||||||
George Washington Cemetery Company, LLC
|
100%
|
|
|||||||||
Lemmon Funeral Home of Dulaney Valley, Inc.
|
100%
|
|
|||||||||
Loring Byers Funeral Directors, Inc.
|
100%
|
|
|||||||||
Miller-Dippel Funeral Home, Inc.
|
100%
|
|
|||||||||
National Cremation Service, Inc.
|
100%
|
|
|||||||||
Sterling-Ashton-Schwab Funeral Home, Inc.
|
100%
|
|
|||||||||
Sterling-Ashton-Schwab-Witzke Funeral Home
|
|||||||||||
of Catonsville, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Maryland subsidiary
|
|||||||||||
Alderwoods (Maryland), Inc.
|
100%
|
|
|||||||||
SCI International, LLC (DE LLC)
|
|||||||||||
Keystone America, Inc. (DE Corp) Maryland subsidiaries
|
|||||||||||
Schimunek Funeral Home, Inc.
|
100%
|
|
|||||||||
The Schimunek Funeral Home of Bel Air, Inc.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp) Maryland subsidiary
|
S.E. Mid-Atlantic, LLC
|
100%
|
|
|||||||||
Bounds Funeral Home, 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
|
|||||||||||
Nickerson-Bourne Funeral Homes, Inc.
|
10%
|
|
|||||||||
SCI Special, LLC (DE LLC)
|
|||||||||||
SCI Capital Corporation (DE Corp)
|
|||||||||||
SCI Capital Holdings, Inc. (DE Corp)
|
|||||||||||
SCI Direct, Inc. (FL Corp) California subsidiaries
|
|||||||||||
Neptune Society of America, Inc. (CA Corp)
|
|||||||||||
Neptune Management Corp. (CA Corp)
|
|||||||||||
Neptune Management (MA), Inc
|
5%
|
|
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%
|
|
|||||||||
|
|||||||||||
OKLAHOMA
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Oklahoma subsidiaries
|
|||||||||||
SCI Oklahoma Funeral Services, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Oklahoma subsidiary
|
|||||||||||
Alderwoods (Oklahoma), Inc.
|
100%
|
|
|||||||||
|
|||||||||||
OREGON
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Oregon subsidiaries
|
|||||||||||
SCI Oregon Funeral Services, Inc.
|
100%
|
|
|||||||||
Uniservice Corporation
|
100%
|
|
Alderwoods Group, LLC (DE LLC) Oregon subsidiary
|
|||||||||||
Alderwoods (Oregon), Inc.
|
100%
|
|
|||||||||
SCI Special, LLC (DE LLC)
|
|||||||||||
SCI Capital Corporation (DE Corp)
|
|||||||||||
SCI Capital Holdings, Inc. (DE Corp)
|
|||||||||||
SCI Direct, Inc. (FL Corp)
|
|||||||||||
Neptune Society of America, Inc. (CA Corp)
|
|||||||||||
Neptune Management Corp. (CA Corp) Oregon sub
|
|||||||||||
Wilhelm Mortuary, Inc.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp) Oregon subsidiary
|
|||||||||||
S.E. Acquisition of Oregon, Inc.
|
100%
|
|
|||||||||
Chapel of the Roses, Inc.
|
100%
|
|
|||||||||
Chapel of the Valley Funeral Home, Inc.
|
100%
|
|
|||||||||
J.P. Finley and Son Mortuary, Inc.
|
100%
|
|
|||||||||
Sunset Hills Memorial Park
|
100%
|
|
|||||||||
|
|||||||||||
PENNSYLVANIA
|
|||||||||||
SCI Funeral Services, LLC (Iowa LLC) Pennsylvania subsidiaries
|
|||||||||||
SCI Pennsylvania Funeral Services, Inc.
|
100%
|
|
|||||||||
Auman Funeral Home, Inc.
|
100%
|
|
|||||||||
Cremation Society of Pennsylvania, Inc.
|
100%
|
|
|||||||||
Funeral Service Pennsylvania, LLC
|
100%
|
|
|||||||||
Laughlin Funeral Home, Ltd.
|
100%
|
|
|||||||||
Parklawns Funeral Home, Inc.
|
100%
|
|
|||||||||
Rohland Funeral Home
|
100%
|
|
|||||||||
Harold B. Mulligan Co., Inc.
|
100%
|
|
|||||||||
Theo. C. Auman, Inc.
|
100%
|
|
|||||||||
Auman's, Inc.
|
100%
|
|
|||||||||
Francis F. Seidel, Inc.
|
100%
|
|
|||||||||
Memorial Guardian Plans, Inc. (DE Corp) Pennsylvania subsidiary
|
|||||||||||
Ensure Agency of Pennsylvania, Inc.
|
100%
|
|
|||||||||
Alderwoods Group, LLC (DE LLC) Pennsylvania subsidiaries
|
|||||||||||
Bright Undertaking Company
|
100%
|
|
|||||||||
H. Samson, Inc.
|
100%
|
|
|||||||||
Nineteen Thirty-Five Holdings, Inc.
|
100%
|
|
|||||||||
Osiris Holding,LLC (DE LLC) Pennsylvania subsidiary
|
|||||||||||
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), LLC (GA LLC) 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%
|
|
|||||||||
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%
|
|
|||||||||
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 (Texas), LLC (CA LLC) Texas subsidiary
|
|||||||||||
Funeral Service, Inc.
|
100%
|
|
|||||||||
Stewart Enterprises, Inc. (LA Corp) Texas subsidiary
|
|||||||||||
Investors Trust, Inc.
|
100%
|
|
|||||||||
S.E. South-Central, LLC (LA LLC) Texas subsidiaries
|
|||||||||||
Pasadena Funeral Home, Inc.
|
100%
|
|
|||||||||
S.E. Cemeteries of Texas, Inc.
|
100%
|
|
|||||||||
S.E. Funeral Homes of Texas, Inc.
|
100%
|
|
|||||||||
Abbey Plan of Texas, Inc.
|
100%
|
|
|||||||||
Emerald Hills Funeral Corporation
|
100%
|
|
|||||||||
Guardian Cremation Society, Inc.
|
100%
|
|
|||||||||
S.E. Combined Services of Texas, Inc.
|
100%
|
|
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%
|
|
|||||||||
|
|||||||||||
International
|
|||||||||||
BARBADOS
|
|||||||||||
Service Corporation International (Canada) ULC (BC ULC)--Barbados subsidiary
|
|||||||||||
Loewen Financial Corporation
|
100%
|
|
|||||||||
|
|||||||||||
BRAZIL
|
|||||||||||
SCI International, LLC (DE Corp)
|
|||||||||||
SCI Latin America Ltd. (Cayman Co) Brazil subsidiary
|
|||||||||||
Service Corporation International Brazil Limitada --- (dormant)
|
100%
|
|
|||||||||
|
|||||||||||
CANADA
|
|||||||||||
SCI International, LLC (DE LLC)
|
|||||||||||
SCI Cerberus, Inc. (DE Corp) - limited partner of
|
|
||||||||||
SCI Parkway Limited Partnership--(Ontario partnership)
|
99.99%
|
|
|||||||||
SCI Parkway, LLC (DE Corp) - general partner of
|
|
Stewart Simplicity Plan of Puerto Rico Holding I, LLC ( DE LLC)
|
|||||||||||
co-partner of
|
|||||||||||
The Simplicity Plan of Puerto Rico
|
.36%
|
|
|||||||||
|
|||||||||||
VIRGIN ISLANDS
|
|||||||||||
SCI International, LLC (DE LLC) BVI subsidiaries
|
|||||||||||
Service Corporation International (BVI) Ltd.
|
100%
|
|
|||||||||
|
|
|
/s/ Thomas L. Ryan
|
|
Thomas L. Ryan
President, 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
President, 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) |