þ
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended December 31, 2010 | ||
OR
|
||
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
Texas
|
74-1488375 | |
(State or other jurisdiction
of
incorporation or organization) |
(I.R.S. employer
identification no.) |
|
1929 Allen Parkway
Houston, Texas (Address of principal executive offices) |
77019
(Zip code) |
Title of Each Class | Name of Each Exchange on Which Registered | |
Common Stock ($1 par value) | New York Stock Exchange |
Large accelerated filer
þ
|
Accelerated filer o | |||||
Non-accelerated filer
o
(Do
not check if a smaller reporting company)
|
Smaller Reporting company o |
2
3
6
33
62
65
68
69
74
78
105
Item 1.
Business.
4
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Number of
Number of
Country, State/Territory/Province
Funeral Homes
Cemeteries
Total
31
9
40
30
11
41
9
9
123
30
153
23
11
34
18
18
1
1
108
53
161
40
19
59
2
2
4
9
1
10
43
25
68
43
9
52
4
2
6
8
2
10
16
3
19
26
5
31
11
11
14
7
21
5
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Number of
Number of
Country, State/Territory/Province
Funeral Homes
Cemeteries
Total
29
29
35
35
11
2
13
20
2
22
24
8
32
2
2
12
6
18
6
6
21
21
90
90
47
11
58
43
11
54
14
7
21
11
3
14
23
17
40
4
5
9
4
4
6
5
11
33
14
47
137
55
192
3
3
6
4
4
29
12
41
42
15
57
3
6
9
16
16
10
10
34
7
41
4
3
7
5
5
13
13
46
46
48
48
17
17
12
12
1,417
381
1,798
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7
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8
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Item 1A.
Risk
Factors.
9
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2010
2009
2008
12.3
%
23.0
%
(23.5
)%
14.0
%
27.3
%
(26.9
)%
13.0
%
22.4
%
(15.4
)%
Incur additional indebtedness (including guarantee obligations);
Create liens on assets;
10
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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.
11
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12
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13
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Item 1B.
Unresolved
Staff Comments.
Item 2.
Properties.
Item 3.
Legal
Proceedings.
Year First
Became
Officer Name
Age
Position
Officer
80
Chairman of the Board
1962
45
President and Chief Executive Officer
1999
52
Executive Vice President and Chief Operating Officer
1998
59
Senior Vice President Sales
1998
56
Senior Vice President and Chief Marketing Officer
2007
59
Senior Vice President Middle Market Operations
1998
49
Senior Vice President Operations Services
2004
55
Senior Vice President General Counsel and Secretary
2007
42
Senior Vice President Chief Financial Officer and Treasurer
2000
42
Senior Vice President Operations
2002
35
Vice President Business Development
2010
54
Vice President Ethics and Business Conduct and Assistant General
Counsel
2007
55
Vice President Human Resources
2005
50
Vice President Litigation and Risk Management
2004
47
Vice President Information Technology
2010
43
Vice President and Corporate Controller
2010
48
Vice President Main Street Market Operations
2010
14
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15
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16
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Item 5.
Market
for Registrants Common Equity, Related Stockholder Matters
and Issuer Purchases of Equity Securities.
2010
2009
High
Low
High
Low
$
9.07
$
7.36
$
5.28
$
2.74
$
9.48
$
7.29
$
5.79
$
3.46
$
8.65
$
7.04
$
7.67
$
5.37
$
8.71
$
7.82
$
8.25
$
6.66
17
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Years Ending
Total Number
of Shares
Dollar Value of
Purchased as
Shares That
Total Number of
Average
Part of Publicly
May Yet be
Shares
Price Paid
Announced
Purchased Under
Period
Purchased
per Share
Programs
the Program
275,892
$
8.48
275,892
34,923,921
1,724,500
$
8.12
1,724,500
192,429,597
1,649,400
$
8.29
1,649,400
178,755,020
3,649,792
3,649,792
18
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Item 6.
Selected
Financial Data.
Years Ended December 31,
2010
2009
2008
2007(2)
2006
(Dollars in millions, except per share amounts)
$
2,190.6
$
2,053.5
$
2,155.6
$
2,285.3
$
1,752.9
$
127.0
$
123.1
$
97.6
$
243.3
$
52.6
$
$
$
(0.4
)
$
4.4
$
3.9
$
127.0
$
123.1
$
97.2
$
247.7
$
56.5
$
(0.6
)
$
$
(0.1
)
$
126.4
$
123.1
$
97.1
$
247.7
$
56.5
$
.51
$
.49
$
.38
$
.85
$
.17
$
.50
$
.49
$
.37
$
.83
$
.17
$
.51
$
.49
$
.38
$
.87
$
.18
$
.50
$
.49
$
.37
$
.85
$
.18
$
.16
$
.16
$
.16
$
.13
$
.105
$
9,190.5
$
8,890.9
$
8,110.9
$
8,932.2
$
9,729.4
$
1,832.4
$
1,840.5
$
1,821.4
$
1,820.1
$
1,912.7
$
1,479.9
$
1,482.8
$
1,293.2
$
1,492.1
$
1,594.8
$
354.4
$
372.1
$
350.3
$
356.2
$
324.2
(1)
Our operations in Singapore, which were sold in 2006, and the
operations of Mayflower, which were sold in 2007, have been
classified as discontinued operations for all periods presented.
(2)
Results for 2007 include a $158.1 million pretax gain on
redemption of securities related to our former equity investment
in France.
19
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Item 7.
Managements
Discussion and Analysis of Financial Condition and Results of
Operations.
20
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21
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Per Credit Agreement
Actual
4.00(Max
)
3.25
3.00(Min
)
4.21
a $47.0 million increase in employee compensation as a
result of merit increases in 2010 that did not occur in 2009,
and an increase in 2010 incentive payments due to achieving
certain targets for 2009;
a $70.1 million increase in vendor payments resulting from
increases in variable costs from the Keystone and Palm
Mortuaries acquisitions;
an $11.3 million decrease in certain life insurance
proceeds in 2010 compared to 2009; partially offset by
22
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an $87.1 million increase in cash receipts from customers
resulting from increased funeral case volume and revenues
primarily from the Keystone and Palm Mortuaries acquisitions;
a $12.8 million increase in GA revenue receipts due to
increased preneed funeral insurance production; and
an $11.9 million increase in net trust fund withdrawals due
to increased withdrawals on qualifying cemetery perpetual care
expenses.
a $58.7 million decrease in employee compensation as a
result of work force initiatives and decreased incentive
payments;
a $73.0 million decrease in vendor payments resulting from
decreased variable costs due to various cost reduction
initiatives;
the receipt of $14.9 million in certain life insurance
proceeds;
a $5.8 million increase in GA revenue receipts due to
increased preneed funeral insurance production; partially offset
by
a $131.8 million decrease in cash receipts from customers
resulting from the decrease in funeral case volume primarily
attributable to a decrease in the number of deaths in our
markets.
23
Table of Contents
2010
2009
2008
$
$
$
45.2
28.7
25.5
22.8
70.5
4.9
3.0
36.9
20.1
15.9
4.5
260.0
54.3
150.00
46.2
24.3
25.9
3.1
5.5
12.8
$
428.4
$
293.5
$
138.2
Payments Due by Period
Contractual Obligations
2011
2012-2013
2014-2015
Thereafter
Total
(Dollars in millions)
$
22.5
$
44.1
$
417.0
$
1,371.3
$
1,854.9
126.4
252.6
229.8
425.8
1,034.6
10.6
18.0
13.1
44.7
86.4
6.4
9.2
5.0
6.7
27.3
$
165.9
$
323.9
$
664.9
$
1,848.5
$
3,003.2
(1)
Our outstanding indebtedness contains standard provisions, such
as payment delinquency default clauses and change of control
clauses. In addition, our bank credit facility agreement
contains a maximum leverage ratio and a minimum interest
coverage ratio. See Capital Allocation
Considerations and Note 11 in Part II,
Item 8. Financial Statements and Supplementary Data, for
additional details related to our long-term debt.
(2)
Approximately 93% 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 11 in Part II, Item 8. Financial Statements
and Supplementary Data, for additional information related to
our future interest obligations.
24
Table of Contents
(3)
The majority of our lease arrangements contain options to
(i) purchase the property at fair value on the exercise
date, (ii) purchase the property for a value determined at
the inception of the leases, or (iii) renew for the fair
rental value at the end of the primary lease term. Our leases
primarily relate to funeral service locations and cemetery
operating and maintenance equipment. See Note 13 in
Part II, Item 8. Financial Statements and
Supplementary Data, for additional details related to our leases.
(4)
We have entered into management employment, consulting, and
non-competition agreements that contractually require us to make
cash payments over the contractual period. The agreements have
been primarily entered into with certain officers and employees
and former owners of businesses acquired. Agreements with
contractual periods less than one year are excluded. See
Note 13 in Part II, Item 8. Financial Statements
and Supplementary Data, for additional details related to these
agreements.
Expiration by Period
Commercial and Contingent Obligations
2011
2012-2013
2014-2015
Thereafter
Total
(Dollars in millions)
$
216.5
$
$
$
$
216.5
2.5
126.6
10.9
51.6
191.6
42.1
42.1
$
219.0
$
168.7
$
10.9
$
51.6
$
450.2
(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)
In accordance with the Income Tax Topic of the Financial
Accounting Standards Boards (FASB) Accounting Standards
Codification (ASC), we have recorded a liability for
unrecognized tax benefits and related interest and penalties of
$191.6 million as of December 31, 2010. See
Note 10 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, 2010, the full amount of our letters of credit
was supported by our bank credit facility, which expires in
November 2013.
25
Table of Contents
December 31,
December 31,
2010
2009
(Dollars in millions)
$
121.0
$
126.6
120.2
126.0
5.1
3.3
246.3
255.9
5.1
4.6
14.2
22.1
$
265.6
$
282.6
26
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Decrease in preneed funeral receivables, net and trust
investments;
(Increase) decrease in preneed cemetery receivables, net and
trust investments;
(Decrease) increase in deferred preneed funeral revenue;
Increase in deferred preneed cemetery revenue;
Decrease in deferred preneed funeral receipts held in
trust;
Decrease in deferred preneed cemetery receipts held in trust;
and
Net income
.
27
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North America
Years Ended
December 31,
2010
2009
(Dollars in millions)
$
117.3
$
141.7
26,954
26,947
$
179.8
$
175.5
41,205
42,826
$
412.6
$
387.4
240.6
239.1
653.2
626.5
$
169.7
$
160.6
180.1
182.3
349.8
342.9
$
153.7
$
134.7
180.1
182.2
333.8
316.9
28
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North America
Years Ended December 31,
2010
2009
(Dollars in millions)
$
413.1
$
320.2
71,532
53,875
$
68.3
$
57.3
$
282.8
$
246.5
52,650
46,343
(1)
Amounts are not included in our consolidated balance sheet.
29
Table of Contents
December 31,
December 31,
2010
2009
Market
Cost
Market
Cost
(Dollars in billions)
$
0.58
$
0.58
$
0.59
$
0.59
1.22
1.18
1.14
1.17
$
1.80
$
1.76
$
1.73
$
1.76
(0.13
)
(0.13
)
(0.12
)
(0.12
)
$
1.67
$
1.63
$
1.61
$
1.64
3.28
3.28
3.03
3.03
$
4.95
$
4.91
$
4.64
$
4.67
$
1.42
$
1.40
$
1.35
$
1.39
(0.12
)
(0.12
)
(0.11
)
(0.11
)
$
1.30
$
1.28
$
1.24
$
1.28
3.28
3.28
3.03
3.03
$
4.58
$
4.56
$
4.27
$
4.31
$
0.81
$
0.81
$
0.82
$
0.82
1.19
1.13
1.06
1.11
$
2.00
$
1.94
$
1.88
$
1.93
(0.15
)
(0.15
)
(0.16
)
(0.16
)
$
1.85
$
1.79
$
1.72
$
1.77
$
1.56
$
1.50
$
1.38
$
1.43
(0.16
)
(0.16
)
(0.14
)
(0.14
)
$
1.40
$
1.34
$
1.24
$
1.29
30
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Funeral gross profit increased $11.2 million due to an
increase in funeral case volume and profits from the Keystone
and Palm Mortuaries acquisitions partially offset by higher
preneed selling costs.
Cemetery gross profit increased $16.6 million due to an
increase in preneed property sales production partially offset
by higher preneed selling costs.
2010
2009
2008
(Dollars in thousands)
$
(2,245
)
$
(1,790
)
$
(24,475
)
$
(5,928
)
$
2,113
$
$
$
$
(362
)
$
(9,383
)
$
(8,235
)
$
(710
)
$
$
$
(1,859
)
$
(5,033
)
$
1,977
$
(11,570
)
31
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Less:
Less:
Activity
Activity
Associated with
Associated
Acquisition/New
with
2010
Consolidated
Construction
Divestitures
Comparable
(Dollars in millions)
$
1,486.3
$
98.5
$
9.6
$
1,378.2
697.7
12.8
3.1
681.8
2,184.0
111.3
12.7
2,060.0
6.6
6.6
$
2,190.6
$
111.3
$
12.7
$
2,066.6
$
316.1
$
22.2
$
0.4
$
293.5
132.2
2.9
(0.1
)
129.4
448.3
25.1
0.3
422.9
0.9
0.9
$
449.2
$
25.1
$
0.3
$
423.8
Less:
Less:
Activity
Activity
Associated with
Associated
Acquisition/New
with
2009
Consolidated
Construction
Divestitures
Comparable
(Dollars in millions)
$
1,385.1
$
2.2
$
21.1
$
1,361.8
661.6
0.5
11.2
649.9
2,046.7
2.7
32.3
2,011.7
6.8
6.8
$
2,053.5
$
2.7
$
32.3
$
2,018.5
$
305.4
$
(0.3
)
$
0.9
$
304.8
115.6
(0.3
)
0.6
115.3
421.0
(0.6
)
1.5
420.1
0.4
0.4
$
421.4
$
(0.6
)
$
1.5
$
420.5
32
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Less:
Activity
Associated
with
2008
Consolidated
Divestitures
Comparable
(Dollars in millions)
$
1,468.7
$
42.3
$
1,426.4
679.9
13.2
666.7
2,148.6
55.5
2,093.1
7.0
7.0
$
2,155.6
$
55.5
$
2,100.1
$
313.1
$
(3.4
)
$
316.5
106.8
(0.6
)
107.4
419.9
(4.0
)
423.9
0.3
0.3
$
420.2
$
(4.0
)
$
424.2
2010
2009
2008
(Dollars in millions, except average
revenue per funeral service)
$
1,492.9
$
1,391.9
$
1,475.7
68.3
57.3
51.5
11.2
8.4
10.0
$
1,413.4
$
1,326.2
$
1,414.2
270,351
258,044
278,165
$
5,228
$
5,139
$
5,084
2010
2009
2008
(Dollars in millions, except average revenue per funeral
service)
$
1,384.8
$
1,368.6
$
1,433.4
64.9
56.8
50.9
9.0
8.4
9.9
$
1,310.9
$
1,303.4
$
1,372.6
248,572
253,340
269,419
$
5,274
$
5,145
$
5,095
Table of Contents
34
Table of Contents
a $9.7 million increase in comparable selling costs
resulting from increased advertising and increased commissions
for preneed production. Selling costs are recognized in the
period incurred; however, the revenue associated with the
preneed production is not recognized until the services are
performed as described in Critical Accounting Policies, Recent
Accounting Pronouncements, and Accounting Changes below;
a $3.2 million increase in insurance expense as the result
of a 2009 favorable adjustment in self-insurance casualty
reserves that did not recur in 2010; and
an $11.5 million unfavorable Canadian currency impact on
expenses.
Gross profit from our comparable funeral locations decreased
$11.6 million, or 3.7%, in 2009 compared to 2008. This
decrease is primarily a result of the decrease in comparable
revenue described above partially offset by;
a $19.9 million decrease in variable costs as a result of
the decrease in the number of funeral services performed noted
above;
a $13.6 million decrease in personnel costs related to
work-force initiatives;
a $5.5 million decrease in selling costs resulting from
decreased advertising expenses;
a $6.1 million decrease in fuel and utilities costs as a
result of lower prices and energy saving initiatives; and
an $8.3 million favorable Canadian currency impact on
expenses.
a $3.2 million in additional gross profits generated by
acquisitions in 2010 and 2009, partially offset by;
35
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a decline of $0.7 million in gross profits contributed by
non-strategic assets that were divested throughout 2010 and 2009.
The increase in comparable revenues described above, partially
offset by;
a $12.3 million increase in selling costs stemming from
increased advertising and increased commissions on preneed
production;
a $2.8 million increase in property and merchandise costs
driven by higher revenues described above; and
a $3.0 million increase in insurance expense as a result of
a 2009 favorable adjustment in self-insurance casualty reserves
that did not recur in 2010.
a $1.2 million decrease in variable selling costs;
a $14.9 million decrease in personnel costs related to
work-force initiatives;
a $3.0 million decrease in self-insurance casualty
reserves; and
a $6.4 million decrease in property and merchandise costs
driven by lower revenues described above.
36
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37
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38
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39
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40
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41
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(Dollars in millions)
$
63.6
22.6
(28.3
)
$
57.9
24.2
(28.2
)
$
53.9
Level 1 inputs to the valuation methodology are
quoted prices (unadjusted) for identical assets or liabilities
in active markets;
42
Table of Contents
Level 2 inputs to the valuation methodology
include quoted prices for similar assets or liabilities in
active markets, and inputs that are observable for the asset or
liability, either directly or indirectly, for substantially the
full term of the financial instrument; and
Level 3 inputs to the valuation methodology are
unobservable and significant to the fair value measurement.
Item 7A.
Quantitative
and Qualitative Disclosures About Market Risk.
43
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44
Table of Contents
Item 8.
Financial
Statements and Supplementary Data.
Page
46
47
48
49
50
51
51
51
58
59
66
73
78
80
82
83
88
90
91
94
96
98
100
104
106
108
110
111
45
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46
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Years Ended December 31,
2010
2009
2008
(In thousands, except per share amounts)
$
2,190,552
$
2,053,520
$
2,155,622
(1,741,329
)
(1,632,125
)
(1,735,447
)
449,223
421,395
420,175
(103,689
)
(102,501
)
(88,851
)
8,512
4,253
(36,124
)
740
(2,528
)
354,046
323,887
292,672
(128,196
)
(128,981
)
(134,274
)
(9,400
)
3,146
3,009
1,316
4,897
219,459
199,368
163,295
(92,458
)
(76,275
)
(65,717
)
127,001
123,093
97,578
(362
)
127,001
123,093
97,216
(584
)
5
(133
)
$
126,417
$
123,098
$
97,083
$
.51
$
.49
$
.38
248,871
251,709
258,106
$
.50
$
.49
$
.37
250,602
252,484
260,983
$
.16
$
.16
$
.16
47
Table of Contents
48
Table of Contents
Years Ended December 31,
2010
2009
2008
(In thousands)
$
127,001
$
123,093
$
97,216
362
9,400
(3,146
)
116,391
111,102
114,157
25,197
21,698
23,636
32,418
30,664
32,690
4,266
7,575
3,573
8,155
11,351
9,243
76,934
57,866
109,118
(8,512
)
(4,253
)
36,124
8,878
9,684
9,970
(14,561
)
(8,245
)
(409
)
2,603
11,161
26,100
16,374
30,899
(143,956
)
45,988
18,963
7,271
(14,778
)
92
23,785
(36,322
)
(22,558
)
(23,334
)
(53,224
)
(41,427
)
36,333
10,558
24,999
11,408
(648
)
(11,702
)
(22,388
)
(1,739
)
4,254
(585
)
354,379
372,070
350,314
(97,899
)
(83,790
)
(154,101
)
(299,083
)
(84,932
)
(8,828
)
90,835
32,696
32,543
26,437
(16,459
)
(21,741
)
(279,710
)
(152,485
)
(152,127
)
858
(279,710
)
(152,485
)
(151,269
)
510,000
150,000
82,133
(11,828
)
(8,146
)
(263,063
)
(33,058
)
(112,302
)
(119,105
)
(236,114
)
(46,214
)
(24,288
)
(25,851
)
1,759
17,407
14,812
(116,878
)
(142,155
)
(40,001
)
(40,195
)
(41,501
)
(2,856
)
(4,036
)
(5,779
)
(88,186
)
(178,430
)
(230,643
)
4,618
10,193
(8,599
)
(8,899
)
51,348
(40,197
)
179,745
128,397
168,594
$
170,846
$
179,745
$
128,397
49
Table of Contents
Accumulated
Treasury
Capital in
Other
Common
Stock,
Excess of
Accumulated
Comprehensive
Noncontrolling
Stock
Par Value
Par Value
Deficit
Income
Interest
Total
(In thousands, except per share amounts)
$
264,819
$
(1,961
)
$
1,874,600
$
(797,965
)
$
152,590
$
$
1,492,083
97,083
133
97,216
(115,941
)
(115,941
)
(18,725
)
(3,265
)
(3,265
)
(40,895
)
(40,895
)
3,944
10,868
14,812
(18,513
)
(18,513
)
293
61
355
709
9,261
9,261
(17,684
)
(101,862
)
(22,609
)
(142,155
)
(133
)
(133
)
(19,103
)
19,103
$
249,953
$
(481
)
$
1,733,814
$
(726,756
)
$
36,649
$
$
1,293,179
123,098
(5
)
123,093
60,493
30
60,523
183,616
19,059
19,059
(40,381
)
(40,381
)
3,643
13,764
17,407
830
(830
)
9,684
9,684
1
71
383
455
(231
)
(231
)
(400
)
400
(218
)
218
$
254,027
$
(10
)
$
1,735,493
$
(603,876
)
$
97,142
$
12
$
1,482,788
126,417
584
127,001
15,626
9
15,635
142,636
(229
)
(229
)
(39,442
)
(39,442
)
431
1,328
1,759
532
(532
)
8,878
8,878
(14,008
)
(102,870
)
(116,878
)
(113
)
(113
)
(12,973
)
12,973
3
60
486
549
$
242,020
$
(985
)
$
1,603,112
$
(477,459
)
$
112,768
$
492
$
1,479,948
50
Table of Contents
1.
Nature
of Operations
2.
Summary
of Significant Accounting Policies
51
Table of Contents
52
Table of Contents
53
Table of Contents
54
Table of Contents
Level 1 inputs to the valuation methodology are
quoted prices (unadjusted) for identical assets or liabilities
in active markets;
Level 2 inputs to the valuation methodology
include quoted prices for similar assets or liabilities in
active markets, and inputs that are observable for the asset or
liability, either directly or indirectly, for substantially the
full term of the financial instrument; and
Level 3 inputs to the valuation methodology are
unobservable and significant to the fair value measurement.
55
Table of Contents
56
Table of Contents
57
Table of Contents
3.
Recent
Accounting Pronouncements and Accounting Changes
58
Table of Contents
4.
Preneed
Funeral Activities
2010
2009
2008
(In thousands)
$
80,027
$
85,901
$
93,586
$
103,418
$
104,437
$
122,294
$
467,221
$
372,058
$
383,975
$
479,128
$
398,984
$
382,940
$
36,807
$
28,715
$
46,703
$
(46,601
)
$
(57,118
)
$
(76,192
)
2010
2009
(In thousands)
$
875,043
$
771,945
121,223
153,126
220,287
214,255
(11
)
(377
)
1,216,542
1,138,949
247,434
256,009
(5,620
)
(6,129
)
1,458,356
1,388,829
(33,799
)
(32,476
)
$
1,424,557
$
1,356,353
59
Table of Contents
2010
2009
2008
(In thousands)
$
1,356,353
$
1,191,692
$
1,434,403
126,121
155,834
155,988
(99,142
)
(118,049
)
(119,981
)
80,027
85,901
93,586
29,607
(6,226
)
23,838
82,097
164,003
(217,767
)
(140,593
)
(141,135
)
(144,257
)
(1,140
)
(2,054
)
(603
)
(8,773
)
26,387
(33,515
)
$
1,424,557
$
1,356,353
$
1,191,692
(1)
Includes both realized and unrealized investment earnings
(losses).
60
Table of Contents
December 31, 2010
Unrealized
Unrealized
Fair Market
Cost
Gains
Losses
Value
(In thousands)
$
71,948
$
2,061
$
(334
)
$
73,675
121,137
1,004
(20
)
122,121
33,627
2,751
(285
)
36,093
5,310
135
(22
)
5,423
2,984
97
(2
)
3,079
2,835
296
(78
)
3,053
268,650
63,301
(8,391
)
323,560
22,452
4,542
(798
)
26,196
21,611
2,240
(2,330
)
21,521
116,260
6,123
(18,289
)
104,094
134,181
6,316
(5,628
)
134,869
27,864
1,395
(16,890
)
12,369
8,833
615
(458
)
8,990
$
837,692
$
90,876
$
(53,525
)
$
875,043
61
Table of Contents
December 31, 2009
Unrealized
Unrealized
Fair Market
Cost
Gains
Losses
Value
(In thousands)
$
40,065
$
1,258
$
(65
)
$
41,258
104,713
1,430
(47
)
106,096
29,778
2,091
(21
)
31,848
6,573
119
(10
)
6,682
3,188
76
3,264
284,392
37,212
(22,811
)
298,793
25,535
2,707
(873
)
27,369
17,336
1,324
(2,686
)
15,974
118,018
2,277
(27,153
)
93,142
151,918
2,135
(18,586
)
135,467
24,445
1,529
(14,808
)
11,166
1,503
359
(976
)
886
$
807,464
$
52,517
$
(88,036
)
$
771,945
Table of Contents
Quoted Market
Significant
Prices in Active
Other
Significant
Markets
Observable
Unobservable
Fair Market
(Level 1)
Inputs (Level 2)
Inputs (Level 3)
Value
(In thousands)
$
610,240
$
243,444
$
21,359
$
875,043
$
570,745
$
189,148
$
12,052
$
771,945
2010
2009
2008
$
12,052
$
40,880
$
37,865
(3,949
)
(9,205
)
(5,920
)
(530
)
(27
)
420
13,786
2,295
8,515
(21,891
)
$
21,359
$
12,052
$
40,880
(1)
All unrealized losses recognized in
Accumulated other
comprehensive income
for our funeral merchandise and service
trust investments are attributable to our preneed customers and
are offset by a corresponding reclassification in
Accumulated
other comprehensive income
to
Deferred preneed funeral
and cemetery receipts held in trust
. See Note 7 for
further information related to our
Deferred preneed funeral
and cemetery receipts held in trust
.
(2)
All (losses) gains recognized in
Other income, net
for
our funeral merchandise and service trust investments are
attributable to our preneed customers and are offset by a
corresponding reclassification in
Other income, net
to
Deferred preneed funeral and cemetery receipts held in
trust
. See Note 7 for further information related to
our
Deferred preneed funeral and cemetery receipts held in
trust
.
Fair Market
Value
(In thousands)
$
136,409
48,019
36,815
19,148
$
240,391
63
Table of Contents
December 31, 2010
In Loss Position
In Loss Position
Less Than 12 Months
Greater Than 12 Months
Total
Fair
Fair
Fair
Market
Unrealized
Market
Unrealized
Market
Unrealized
Value
Losses
Value
Losses
Value
Losses
(In thousands)
$
10,433
$
(316
)
$
393
$
(18
)
$
10,826
$
(334
)
1,632
(2
)
668
(18
)
2,300
(20
)
5,619
(285
)
5,619
(285
)
836
(9
)
263
(13
)
1,099
(22
)
225
(1
)
53
(1
)
278
(2
)
1,045
(78
)
1,045
(78
)
41,491
(3,019
)
24,919
(5,372
)
66,410
(8,391
)
4,493
(324
)
1,361
(474
)
5,854
(798
)
5,251
(862
)
3,446
(1,468
)
8,697
(2,330
)
3,778
(110
)
61,844
(18,179
)
65,622
(18,289
)
9,630
(156
)
8,818
(5,472
)
18,448
(5,628
)
214
(71
)
6,715
(16,819
)
6,929
(16,890
)
8
(2
)
309
(456
)
317
(458
)
$
84,655
$
(5,235
)
$
108,789
$
(48,290
)
$
193,444
$
(53,525
)
64
Table of Contents
December 31, 2009
In Loss Position
In Loss Position
Less Than 12 Months
Greater Than 12 Months
Total
Fair
Fair
Fair
Market
Unrealized
Market
Unrealized
Market
Unrealized
Value
Losses
Value
Losses
Value
Losses
(In thousands)
$
2,707
$
(40
)
$
2,296
$
(25
)
$
5,003
$
(65
)
5,367
(47
)
5,367
(47
)
1,517
(21
)
1,517
(21
)
1,494
(10
)
1,494
(10
)
67,044
(6,031
)
56,926
(16,780
)
123,970
(22,811
)
4,153
(480
)
2,879
(393
)
7,032
(873
)
3,491
(362
)
6,115
(2,324
)
9,606
(2,686
)
60,413
(24,928
)
20,945
(2,225
)
81,358
(27,153
)
46,542
(10,471
)
22,684
(8,115
)
69,226
(18,586
)
1,801
(1,743
)
3,067
(13,065
)
4,868
(14,808
)
109
(203
)
143
(773
)
252
(976
)
$
194,638
$
(44,336
)
$
115,055
$
(43,700
)
$
309,693
$
(88,036
)
2010
2009
2008
(In thousands)
$
596,966
$
588,198
$
526,668
112,678
141,752
149,150
26,816
(794
)
41,469
83,605
135,842
(191,601
)
(151,484
)
(153,382
)
(162,409
)
(761
)
(2,972
)
(2,336
)
(69,694
)
(117,181
)
222,565
(17,903
)
5,503
4,692
$
580,223
$
596,966
$
588,198
(1)
Includes both realized and unrealized investment earnings
(losses).
Table of Contents
5.
Preneed
Cemetery Activities
2010
2009
2008
(In thousands)
$
96,864
$
92,687
$
106,724
100,474
104,580
132,725
638,368
625,248
846,679
592,813
593,133
424,009
43,413
44,972
47,411
(51,771
)
(75,254
)
(85,527
)
66
Table of Contents
2010
2009
(In thousands)
$
1,062,771
$
957,608
123,465
145,668
9,158
10,492
(599
)
(47,726
)
1,194,795
1,066,042
452,296
396,918
(39,205
)
(41,517
)
1,607,886
1,421,443
(43,993
)
(38,726
)
$
1,563,893
$
1,382,717
2010
2009
2008
(In thousands)
$
1,382,717
$
1,062,952
$
1,428,057
423,985
408,328
424,939
5,508
7,749
8,728
121,225
271,804
(336,263
)
(373,071
)
(351,459
)
(432,468
)
96,864
92,687
106,724
(100,474
)
(104,580
)
(132,725
)
(3,764
)
(10,141
)
8,328
10,903
5,377
(12,368
)
$
1,563,893
$
1,382,717
$
1,062,952
(1)
Includes both realized and unrealized investment earnings
(losses).
67
Table of Contents
December 31, 2010
Unrealized
Unrealized
Fair Market
Cost
Gains
Losses
Value
(In thousands)
$
50,884
$
2,493
$
(307
)
$
53,070
15,669
362
(4
)
16,027
39,265
3,387
(402
)
42,250
863
31
(1
)
893
6,336
261
(5
)
6,592
4,577
453
(124
)
4,906
386,537
82,385
(10,821
)
458,101
17,279
3,869
(850
)
20,298
31,466
2,485
(3,645
)
30,306
202,328
15,173
(18,569
)
198,932
226,567
8,537
(9,959
)
225,145
19,596
13
(13,890
)
5,719
874
43
(385
)
532
$
1,002,241
$
119,492
$
(58,962
)
$
1,062,771
Table of Contents
December 31, 2009
Unrealized
Unrealized
Fair Market
Cost
Gains
Losses
Value
(In thousands)
$
32,084
$
1,169
$
(81
)
$
33,172
15,664
224
(53
)
15,835
9,065
438
(3
)
9,500
1,460
19
(2
)
1,477
6,476
193
6,669
403,208
47,040
(26,962
)
423,286
18,653
2,021
(1,183
)
19,491
26,567
1,433
(3,841
)
24,159
241,763
4,028
(38,093
)
207,698
233,999
2,699
(24,718
)
211,980
14,968
8
(11,000
)
3,976
1,230
34
(899
)
365
$
1,005,137
$
59,306
$
(106,835
)
$
957,608
Table of Contents
Quoted Market
Prices in Active
Significant Other
Significant
Markets
Observable Inputs
Unobservable Inputs
(Level 1)
(Level 2)
(Level 3)
Fair Market Value
(In thousands)
$
932,782
$
123,738
$
6,251
$
1,062,771
$
886,614
$
66,653
$
4,341
$
957,608
2010
2009
2008
$
4,341
$
31,837
$
21,809
(4,304
)
(14,039
)
(3,109
)
(529
)
(27
)
325
6,743
2,162
12,812
(15,592
)
$
6,251
$
4,341
$
31,837
(1)
All unrealized losses recognized in
Accumulated other
comprehensive income
for our cemetery merchandise and
service trust investments are attributable to our preneed
customers and are offset by a corresponding reclassification in
Accumulated other comprehensive income
to
Deferred
preneed funeral and cemetery receipts held in trust
. See
Note 7 for further information related to our
Deferred
preneed funeral and cemetery receipts held in trust
.
(2)
All (losses) gains recognized in
Other income, net
for
our cemetery merchandise and service trust investments are
attributable to our preneed customers and are offset by a
corresponding reclassification in
Other income, net
to
Deferred preneed funeral and cemetery receipts held in
trust
. See Note 7 for further information related to
our
Deferred preneed funeral and cemetery receipts held in
trust
.
Fair Market
Value
(In thousands)
$
1,807
53,223
39,018
24,784
$
118,832
70
Table of Contents
December 31, 2010
In Loss Position
In Loss Position
Less Than 12 Months
Greater Than 12 Months
Total
Fair Market
Unrealized
Fair Market
Unrealized
Fair Market
Unrealized
Value
Losses
Value
Losses
Value
Losses
(In thousands)
$
6,057
$
(295
)
$
315
$
(12
)
$
6,372
$
(307
)
2,908
(4
)
2,908
(4
)
8,577
(402
)
8,577
(402
)
20
(1
)
20
(1
)
766
(4
)
56
(1
)
822
(5
)
1,749
(124
)
1,749
(124
)
63,027
(4,450
)
31,108
(6,371
)
94,135
(10,821
)
3,131
(181
)
1,475
(669
)
4,606
(850
)
8,542
(1,403
)
5,259
(2,242
)
13,801
(3,645
)
5,107
(112
)
92,630
(18,457
)
97,737
(18,569
)
25,887
(354
)
14,600
(9,605
)
40,487
(9,959
)
5,557
(13,890
)
5,557
(13,890
)
7
(1
)
303
(384
)
310
(385
)
$
125,758
$
(7,330
)
$
151,323
$
(51,632
)
$
277,081
$
(58,962
)
71
Table of Contents
December 31, 2009
In Loss Position
In Loss Position
Less Than 12 Months
Greater Than 12 Months
Total
Fair Market
Unrealized
Fair Market
Unrealized
Fair Market
Unrealized
Value
Losses
Value
Losses
Value
Losses
(In thousands)
$
2,624
$
(65
)
$
1,171
$
(16
)
$
3,795
$
(81
)
5,262
(53
)
5,262
(53
)
212
(3
)
212
(3
)
267
(2
)
267
(2
)
106,741
(7,151
)
69,731
(19,811
)
176,472
(26,962
)
4,445
(407
)
2,587
(776
)
7,032
(1,183
)
7,453
(830
)
9,177
(3,011
)
16,630
(3,841
)
123,439
(33,152
)
44,463
(4,941
)
167,902
(38,093
)
131,246
(16,036
)
28,203
(8,682
)
159,449
(24,718
)
2,398
(4,056
)
1,571
(6,944
)
3,969
(11,000
)
147
(252
)
95
(647
)
242
(899
)
$
384,234
$
(62,007
)
$
156,998
$
(44,828
)
$
541,232
$
(106,835
)
2010
2009
2008
(In thousands)
$
817,543
$
771,117
$
753,876
349,786
342,984
338,114
1,090
5,461
529
117,331
242,483
(299,422
)
(347,996
)
(325,036
)
(356,501
)
(2,457
)
10,855
7,866
(125,974
)
(235,031
)
330,333
4,170
4,710
(3,678
)
$
813,493
$
817,543
$
771,117
(1)
Includes both realized and unrealized investment earnings
(losses).
72
Table of Contents
6.
Cemetery
Perpetual Care Trusts
2010
2009
2008
(In thousands)
$
22,828
$
22,336
$
23,347
41,418
31,196
31,628
442,219
369,536
218,140
365,017
285,370
222,445
11,753
11,288
19,070
(9,792
)
(20,512
)
(32,312
)
2010
2009
(In thousands)
$
922,228
$
814,640
64,791
92,153
(17,104
)
$
987,019
$
889,689
73
Table of Contents
December 31, 2010
Unrealized
Unrealized
Fair Market
Cost
Gains
Losses
Value
(In thousands)
$
5,651
$
863
$
(31
)
$
6,483
26,702
642
(7
)
27,337
48,278
5,219
(249
)
53,248
1,764
55
(6
)
1,813
363
5
368
7,789
1,385
(112
)
9,062
116,799
16,916
(6,640
)
127,075
11,510
2,510
(758
)
13,262
16,004
2,175
(1,845
)
16,334
65,114
6,964
(7,239
)
64,839
562,879
24,773
(2,334
)
585,318
23,428
351
(13,344
)
10,435
8,475
836
(2,657
)
6,654
$
894,756
$
62,694
$
(35,222
)
$
922,228
December 31, 2009
Unrealized
Unrealized
Fair Market
Cost
Gains
Losses
Value
(In thousands)
5,031
852
(9
)
5,874
26,688
378
(92
)
26,974
40,703
3,079
(367
)
43,415
1,923
35
(9
)
1,949
520
8
528
5,803
1,389
(259
)
6,933
113,147
7,348
(12,016
)
108,479
10,016
677
(970
)
9,723
12,558
1,237
(2,450
)
11,345
69,376
2,023
(15,598
)
55,801
534,137
4,384
(9,845
)
528,676
28,853
394
(18,235
)
11,012
8,568
748
(5,385
)
3,931
$
857,323
$
22,552
$
(65,235
)
$
814,640
Table of Contents
Quoted Market
Prices in Active
Significant Other
Significant
Markets
Observable Inputs
Unobservable Inputs
(Level 1)
(Level 2)
(Level 3)
Fair Market Value
(In thousands)
$
806,828
$
98,311
$
17,089
$
922,228
$
714,024
$
85,673
$
14,943
$
814,640
2010
2009
2008
$
14,943
$
48,276
$
32,644
7,018
(27,920
)
(13,569
)
(2,613
)
(121
)
32
(2,259
)
1,920
29,169
(7,212
)
$
17,089
$
14,943
$
48,276
75
Table of Contents
(1)
All unrealized gains (losses) recognized in
Accumulated other
comprehensive income
for our cemetery perpetual care trust
investments are offset by a corresponding reclassification in
Accumulated other comprehensive income
to
Care
trusts corpus
. See Note 7 for further information
related to our
Care trusts corpus
.
(2)
All (losses) gains recognized in
Other income, net
for
our cemetery perpetual care trust investments are offset by a
corresponding reclassification in
Other income, net
to
Care trusts corpus
. See Note 7 for further
information related to our
Care trusts corpus
.
Fair Market
Value
(In thousands)
$
5,477
41,430
27,490
14,852
$
89,249
76
Table of Contents
December 31, 2010
In Loss Position
In Loss Position
Less Than 12 Months
Greater Than 12 Months
Total
Fair
Fair
Fair
Market
Unrealized
Market
Unrealized
Market
Unrealized
Value
Losses
Value
Losses
Value
Losses
(In thousands)
$
1,669
$
(31
)
$
$
$
1,669
$
(31
)
4,966
(7
)
4,966
(7
)
9,181
(221
)
675
(28
)
9,856
(249
)
137
(2
)
92
(4
)
229
(6
)
1,561
(90
)
29
(22
)
1,590
(112
)
15,419
(1,464
)
16,419
(5,176
)
31,838
(6,640
)
1,545
(82
)
1,454
(676
)
2,999
(758
)
3,175
(242
)
2,383
(1,603
)
5,558
(1,845
)
866
(10
)
29,974
(7,229
)
30,840
(7,239
)
18,166
(134
)
53,553
(2,200
)
71,719
(2,334
)
1
(1
)
10,060
(13,343
)
10,061
(13,344
)
1
(2
)
5,568
(2,655
)
5,569
(2,657
)
$
56,687
$
(2,286
)
$
120,207
$
(32,936
)
$
176,894
$
(35,222
)
77
Table of Contents
December 31, 2009
In Loss Position
In Loss Position
Less Than 12 Months
Greater Than 12 Months
Total
Fair
Fair
Fair
Market
Unrealized
Market
Unrealized
Market
Unrealized
Value
Losses
Value
Losses
Value
Losses
(In thousands)
$
1,029
$
(9
)
$
$
$
1,029
$
(9
)
9,053
(92
)
9,053
(92
)
4,739
(92
)
2,780
(275
)
7,519
(367
)
1,426
(9
)
1,426
(9
)
511
(47
)
734
(212
)
1,245
(259
)
19,069
(1,529
)
31,553
(10,487
)
50,622
(12,016
)
1,253
(229
)
2,637
(741
)
3,890
(970
)
1,102
(17
)
3,086
(2,433
)
4,188
(2,450
)
21,152
(9,290
)
16,051
(6,308
)
37,203
(15,598
)
285,936
(7,512
)
36,141
(2,333
)
322,077
(9,845
)
4,387
(7,249
)
6,201
(10,986
)
10,588
(18,235
)
1,220
(2,017
)
1,720
(3,368
)
2,940
(5,385
)
$
350,877
$
(28,092
)
$
100,903
$
(37,143
)
$
451,780
$
(65,235
)
7.
Deferred
Preneed Funeral and Cemetery Receipts Held in Trust and Care
Trusts Corpus
Table of Contents
December 31, 2010
December 31, 2009
Preneed
Preneed
Preneed
Preneed
Funeral
Cemetery
Total
Funeral
Cemetery
Total
(In thousands)
(In thousands)
$
1,216,542
$
1,194,795
$
2,411,337
$
1,138,949
$
1,066,042
$
2,204,991
(975
)
(2,288
)
(3,263
)
(1,449
)
(2,139
)
(3,588
)
$
1,215,567
$
1,192,507
$
2,408,074
$
1,137,500
$
1,063,903
$
2,201,403
December 31, 2010
December 31, 2009
(In thousands)
$
987,019
$
889,689
(147
)
1,220
$
986,872
$
890,909
Year Ended December 31, 2010
Funeral
Cemetery
Cemetery Perpetual
Trusts
Trusts
Care Trusts
Other, Net
Total
(In thousands)
$
36,807
$
43,413
$
11,753
$
$
91,973
(54,736
)
(57,520
)
(17,563
)
(129,819
)
18,571
22,464
34,356
75,391
(4,920
)
(9,708
)
(1,872
)
(16,500
)
(4,278
)
(1,351
)
26,674
21,045
4,278
1,351
(26,674
)
(21,045
)
3,009
3,009
$
$
$
$
3,009
$
3,009
79
Table of Contents
Year Ended December 31, 2009
Funeral
Cemetery
Cemetery Perpetual
Trusts
Trusts
Care Trusts
Other, Net
Total
(In thousands)
$
28,715
$
44,972
$
11,288
$
$
84,975
(79,594
)
(116,499
)
(33,579
)
(229,672
)
21,694
25,273
37,436
84,403
(4,127
)
(3,789
)
(3,240
)
(11,156
)
(33,312
)
(50,043
)
11,905
(71,450
)
33,312
50,043
(11,905
)
71,450
1,316
1,316
$
$
$
$
1,316
$
1,316
Year Ended December 31, 2008
Funeral
Cemetery
Cemetery Perpetual
Trusts
Trusts
Care Trusts
Other, Net
Total
(In thousands)
$
46,703
$
47,411
$
19,070
$
$
113,184
(85,298
)
(96,919
)
(34,338
)
(216,555
)
43,265
31,894
37,177
112,336
(14,090
)
(22,619
)
(837
)
(37,546
)
(9,420
)
(40,233
)
21,072
(28,581
)
9,420
40,233
(21,072
)
28,581
4,897
4,897
$
$
$
$
4,897
$
4,897
8.
Keystone
Acquisition
the acquisition of Keystone enhances our network footprint,
enabling us to serve a number of new, complementary areas;
80
Table of Contents
combining the two companies operations provides synergies
and related cost savings through the elimination of duplicate
home office functions and economies of scale; and
the acquisition of Keystones preneed backlog of deferred
revenues enhances our long-term stability.
81
Table of Contents
Useful Life
Fair Value
(In thousands)
10 years
$
15,200
10 14 years
1,740
5 15 years
13,332
5 15 years
440
5 years
3,600
Indefinite
33,200
Indefinite
500
$
68,012
2010
2009
(In thousands)
$
2,220,204
$
2,176,166
$
129,970
$
141,177
9.
Goodwill
2010
2009
Funeral
Cemetery
Total
Funeral
Cemetery
Total
$
1,140,742
$
207,384
$
1,348,126
$
1,124,219
$
201,544
$
1,325,763
(146,794
)
(146,794
)
(146,794
)
(146,794
)
1,140,742
60,590
1,201,332
1,124,219
54,750
1,178,969
114,020
6,076
120,096
13,661
2,602
16,263
(16,581
)
(3,388
)
(19,969
)
(11,682
)
(44
)
(11,726
)
6,025
6,025
14,544
3,282
17,826
103,464
2,688
106,152
16,523
5,840
22,363
1,244,206
210,072
1,454,278
1,140,742
207,384
1,348,126
(146,794
)
(146,794
)
(146,794
)
(146,794
)
$
1,244,206
$
63,278
$
1,307,484
$
1,140,742
$
60,590
$
1,201,332
82
Table of Contents
10.
Income
Taxes
2010
2009
2008
(In thousands)
$
169,544
$
175,212
$
125,694
49,915
24,156
37,601
$
219,459
$
199,368
$
163,295
2010
2009
2008
(In thousands)
$
1,752
$
13
$
(60,270
)
12,326
9,200
11,285
1,446
9,196
5,584
15,524
18,409
(43,401
)
$
64,814
$
57,767
$
99,752
185
(806
)
645
11,935
905
8,721
76,934
57,866
109,118
$
92,458
$
76,275
$
65,717
83
Table of Contents
2010
2009
2008
(In thousands)
$
76,811
$
69,779
$
57,107
8,775
6,565
9,298
(1,168
)
(947
)
(1,177
)
(3,101
)
(3,707
)
(4,975
)
7,192
2,950
2,586
1,138
(134
)
818
2,811
1,769
2,060
$
92,458
$
76,275
$
65,717
42.1
%
38.3
%
40.2
%
84
Table of Contents
2010
2009
(In thousands)
$
(344,160
)
$
(332,465
)
(170,305
)
(150,312
)
(82,587
)
(55,976
)
(28,779
)
(1,390
)
(625,831
)
(540,143
)
235,393
180,897
98,335
172,944
24,469
28,090
49,316
31,208
407,513
413,139
(63,614
)
(68,192
)
$
(281,932
)
$
(195,196
)
2010
2009
$
40,740
$
50,807
631
727
(323,303
)
(246,730
)
$
(281,932
)
$
(195,196
)
85
Table of Contents
Federal, State and
Foreign Tax
(In thousands)
$
147,888
8,132
(8,700
)
(4,863
)
$
142,457
5,154
1,076
(4,243
)
$
144,444
10,215
110
(2,004
)
$
152,765
86
Table of Contents
Federal
State
Foreign
Total
(In thousands)
$
308
$
19,161
$
$
19,469
232
60,475
60,707
1,733
15,174
16,907
115
42,224
42,339
297,759
2,585,295
5,978
2,889,032
$
300,147
$
2,722,329
$
5,978
$
3,028,454
Federal
State(1)
Foreign
Total
(In thousands)
$
118,732
$
91,772
$
24,889
$
235,393
$
4,289
$
36,278
$
23,047
$
63,614
(1)
Presented net of Federal benefit
87
Table of Contents
11.
Debt
2010
2009
(In thousands)
8,557
32,127
180,692
245,000
157,250
160,250
212,927
233,143
295,000
295,000
250,000
250,000
250,000
150,000
150,000
200,000
200,000
150,000
118,339
142,946
38,223
38,631
(6,106
)
(6,608
)
1,854,882
1,890,489
(22,502
)
(49,957
)
$
1,832,380
$
1,840,532
$
22,502
18,615
25,436
226,325
190,678
1,371,326
$
1,854,882
88
Table of Contents
$25.5 million aggregate principal amount of our
7.875% Notes due February 2013;
$70.5 million aggregate principal amount of our
7.375% Notes due October 2014;
$3.0 million aggregate principal amount of our
6.75% Notes due April 2015; and
$20.1 million aggregate principal amount of our
6.75% Notes due April 2016.
$28.7 million balance of our 7.7% Notes due April 2009;
$150.0 million aggregate principal amount of our
Series B senior Notes due November 2011;
$23.5 million aggregate principal amount of our
7.875% Debentures due February 2013;
$5.0 million aggregate principal amount of our
7.375% Senior Notes due October 2014;
$39.8 million aggregate principal amount of our
6.75% Notes due April 2015;
$16.9 million aggregate principal amount of our
6.75% Notes due April 2016; and
$5.0 million aggregate principal amount of our
7.0% Notes due June 2017.
89
Table of Contents
$
125,138
$
122,224
$
131,844
$
126,397
$
126,409
$
126,143
$
124,604
$
105,185
$
425,835
12.
Credit
Risk and Fair Value of Financial Instruments
90
Table of Contents
2010
2009
(In thousands)
9,092
31,330
194,244
247,450
161,968
157,846
216,653
222,069
302,375
289,100
262,500
250,625
251,250
158,063
148,500
194,920
179,000
148,875
37,991
34,898
$
1,789,056
$
1,709,693
13.
Commitments
and Contingencies
91
Table of Contents
Operating
Capital
(In thousands)
$
10,645
$
23,644
9,363
19,453
8,667
16,065
7,396
21,974
5,674
35,027
44,648
18,483
$
86,393
$
134,646
(16,307
)
$
118,339
Employment
Consulting
Non-Competition
Total
(In thousands)
$
2,505
$
627
$
3,225
$
6,357
2,340
354
2,864
5,558
1,032
210
2,370
3,612
902
129
1,973
3,004
355
84
1,535
1,974
664
99
6,035
6,798
$
7,798
$
1,503
$
18,002
$
27,303
92
Table of Contents
93
Table of Contents
14.
Equity
94
Table of Contents
Foreign
Accumulated
Currency
Unrealized
Other
Translation
Gains and
Comprehensive
Adjustment
Losses
(Loss) Income
(In thousands)
$
152,590
$
$
152,590
(115,941
)
(115,941
)
(605,355
)
(605,355
)
605,355
605,355
$
36,649
$
$
36,649
60,493
60,493
323,131
323,131
(323,131
)
(323,131
)
$
97,142
$
$
97,142
15,626
15,626
147,688
147,688
(147,688
)
(147,688
)
$
112,768
$
$
112,768
95
Table of Contents
15.
Share-Based
Compensation
Years Ended December 31,
Assumptions
2010
2009
2008
1.9
%
3.5
%
1.3
%
37.5
%
32.3
%
45.9
%
2.3
%
1.8
%
2.9
%
5.0 years
5.0 years
5.7 years
96
Table of Contents
December 31,
2010
2009
2008
(In thousands)
$
8,878
$
9,684
$
9,261
$
3,740
$
3,705
$
3,732
Weighted-Average
Options
Exercise Price
10,495,142
$
7.36
2,255,120
$
7.66
(416,469
)
$
4.04
(21,010
)
$
7.28
12,312,783
$
7.53
6,990,732
$
8.47
Options Outstanding
Options Exercisable
Number
Weighted-
Number
Outstanding at
Average
Weighted-
Exercisable at
Weighted-
December 31,
Remaining
Average
December 31,
Average
Range of Exercise Price
2010
Contractual Life
Exercise Price
2010
Exercise Price
3,911,794
6.0
$
4.19
1,293,314
$
4.20
4,927,989
4.6
$
7.62
2,701,769
$
7.61
3,473,000
4.6
$
11.15
2,995,649
$
11.10
12,312,783
5.0
$
7.53
6,990,732
$
8.47
97
Table of Contents
2010
2009
2008
$
2.31
$
0.87
$
4.78
$
6,022
$
6,439
$
5,627
$
1,804
$
7,001
$
16,559
Weighted-Average
Restricted
Grant-Date
Shares
Fair Value
1,101,440
$
6.01
532,050
$
7.66
(466,217
)
$
7.05
1,167,273
$
6.35
16.
Retirement
Plans
98
Table of Contents
2010
2009
2008
(In thousands)
$
1,498
$
1,849
$
2,590
(294
)
534
2,197
(2,512
)
1,968
$
2,032
$
4,046
$
1,752
2010
2009
(In thousands)
$
32,891
$
32,951
1,498
1,849
846
2,518
(3,858
)
(4,427
)
$
31,377
$
32,891
$
$
3,858
4,427
(3,858
)
(4,427
)
$
$
$
(31,377
)
$
(32,891
)
$
(31,377
)
$
(32,891
)
$
31,377
$
32,891
$
31,377
$
32,891
$
(31,377
)
$
(32,891
)
99
Table of Contents
2010
2009
2008
4.45
%
5.00
%
5.95
%
4.80
%
5.97
%
5.75
%
$
3,797
3,654
3,566
3,586
2,995
11,424
Years of Vesting Service
Percentage of Deferred Compensation
75% of the first 6% of deferred compensation
100% of the first 6% of deferred compensation
125% of the first 6% of deferred compensation
17.
Segment
Reporting
100
Table of Contents
Reportable
Funeral
Cemetery
Segments
(In thousands)
$
1,492,838
$
697,714
$
2,190,552
3,033
257
3,290
87,897
20,909
108,806
17,464
6,095
23,559
317,068
132,155
449,223
32,418
32,418
4,262,675
4,450,028
8,712,703
34,762
48,427
83,189
$
1,391,894
$
661,626
$
2,053,520
2,548
847
3,395
85,324
21,889
107,213
15,473
6,105
21,578
305,809
115,586
421,395
30,664
30,664
4,081,512
4,215,968
8,297,480
38,348
38,726
77,074
$
1,475,736
$
679,886
$
2,155,622
4,466
1,054
5,520
87,108
21,981
109,089
17,171
6,344
23,515
313,397
106,778
420,175
32,690
32,690
3,866,526
3,813,676
7,680,202
65,879
77,304
143,183
101
Table of Contents
Reportable
Segments
Corporate
Consolidated
(In thousands)
$
2,190,552
$
$
2,190,552
3,290
124,906
128,196
108,806
7,585
116,391
23,559
1,638
25,197
8,712,703
477,837
9,190,540
83,189
14,710
97,899
$
2,053,520
$
$
2,053,520
3,395
125,586
128,981
107,213
3,889
111,102
21,578
120
21,698
8,297,480
593,462
8,890,942
77,074
6,716
83,790
$
2,155,622
$
$
2,155,622
5,520
128,754
134,274
109,089
5,068
114,157
23,515
121
23,636
7,680,202
430,681
8,110,883
143,183
10,918
154,101
2010
2009
2008
(In thousands)
$
449,223
$
421,395
$
420,175
(103,689
)
(102,501
)
(88,851
)
8,512
4,253
(36,124
)
740
(2,528
)
354,046
323,887
292,672
(128,196
)
(128,981
)
(134,274
)
(9,400
)
3,146
3,009
1,316
4,897
$
219,459
$
199,368
$
163,295
102
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United States
Canada
Germany
Total
(In thousands)
$
1,981,190
$
202,760
$
6,602
$
2,190,552
127,971
225
128,196
104,496
11,507
388
116,391
23,524
1,673
25,197
27,688
4,730
32,418
301,297
51,799
950
354,046
6,837
1,600
75
8,512
4,467,176
363,008
3,600
4,833,784
$
1,869,042
$
177,665
$
6,813
$
2,053,520
128,798
140
43
128,981
100,380
10,273
449
111,102
19,969
1,729
21,698
27,545
3,119
30,664
288,108
35,462
317
323,887
8,906
(4,614
)
(39
)
4,253
4,526,789
354,677
4,022
4,885,488
$
1,942,682
$
205,950
$
6,990
$
2,155,622
133,961
313
134,274
101,905
11,575
677
114,157
21,371
2,265
23,636
28,317
4,373
32,690
244,954
47,395
323
292,672
(32,750
)
(3,395
)
21
(36,124
)
4,434,810
318,409
2,753
4,755,972
103
Table of Contents
18.
Supplementary
Information
December 31,
2010
2009
(In thousands)
$
78,382
$
30,728
92,464
149,017
$
170,846
$
179,745
$
1,395
$
1,500
85,853
68,241
10,235
11,420
9,702
11,028
$
107,185
$
92,189
$
14,499
$
11,405
4,182
3,794
8,513
6,441
$
27,194
$
21,640
$
1,083,290
$
1,075,544
425,497
413,521
$
1,508,787
$
1,489,065
$
509,100
$
485,409
1,496,310
1,404,495
427,607
488,528
23,302
24,387
156,235
141,453
2,612,554
2,544,272
(891,846
)
(872,724
)
(93,010
)
(80,474
)
$
1,627,698
$
1,591,074
$
48,775
$
46,297
31,796
33,807
40,375
25,391
93,104
57,868
14,755
186,871
11,781
12,105
72,420
72,552
75,012
87,498
$
388,018
$
522,389
104
Table of Contents
December 31,
2010
2009
(In thousands)
$
116,543
$
88,683
69,988
66,060
9,602
10,161
22,923
24,091
13,726
15,053
53,892
57,928
15,582
18,239
40,395
34,062
$
342,651
$
314,277
$
31,377
$
32,891
42,246
32,293
75,517
76,689
201,183
189,999
2,689
2,542
46,177
44,354
$
399,189
$
378,768
Table of Contents
2010
2009
2008
(In thousands)
$
490,237
$
450,892
$
482,988
481,540
446,035
456,035
971,777
896,927
939,023
929,668
882,186
938,204
186,203
183,288
187,942
1,115,871
1,065,474
1,126,146
102,904
91,119
90,453
$
2,190,552
$
2,053,520
$
2,155,622
$
248,186
$
226,931
$
246,973
204,669
191,489
198,635
452,855
418,420
445,608
452,903
419,855
453,915
94,772
98,923
105,865
547,675
518,778
559,780
740,799
694,927
730,059
$
1,741,329
$
1,632,125
$
1,735,447
Years Ended December 31,
2010
2009
2008
(In thousands)
$
9,602
$
10,161
$
9,981
$
$
147,173
$
19.
Earnings
Per Share
106
Table of Contents
2010
2009
2008
(In thousands, except per share amounts)
$
126,417
$
123,098
$
97,445
51
51
$
126,468
$
123,149
$
97,445
$
$
$
(362
)
$
126,417
$
123,098
$
97,083
51
51
$
126,468
$
123,149
$
97,083
248,871
251,709
258,106
1,610
654
2,877
121
121
250,602
252,484
260,983
$
.51
$
.49
$
.38
$
.50
$
.49
$
.37
$
$
$
$
$
$
$
.51
$
.49
$
.38
$
.50
$
.49
$
.37
2010
2009
2008
4,815
6,244
3,135
167
4,815
6,244
3,302
107
Table of Contents
20.
Divestiture-Related
Activities
2010
2009
2008
(In thousands)
$
16,547
$
20,787
$
(4,695
)
(8,035
)
(16,534
)
(31,429
)
$
8,512
$
4,253
$
(36,124
)
108
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December 31,
2010
2009
(In thousands)
$
552
$
1,197
24
377
707
50,952
298
2,111
120
137
10,237
17,104
1,718
82,098
501
423
49,346
7
1,882
17,104
430
68,833
$
1,288
$
13,265
109
Table of Contents
21.
Quarterly
Financial Data
(Unaudited)
First
Second
Third
Fourth
Quarter
Quarter
Quarter
Quarter
(In thousands, except per share amounts)
$
530,863
$
555,273
$
533,165
$
571,251
(418,556
)
(445,975
)
(430,518
)
(446,280
)
112,307
109,298
102,647
124,971
85,626
95,926
68,496
103,998
51,441
67,425
28,621
71,972
(20,116
)
(27,198
)
(9,941
)
(35,203
)
31,325
40,227
18,680
36,769
(413
)
58
85
(314
)
30,912
40,285
18,765
36,455
.12
.16
.08
.15
.12
.16
.08
.15
$
510,595
$
513,949
$
497,217
$
531,759
(410,475
)
(412,124
)
(396,054
)
(413,472
)
100,120
101,825
101,163
118,287
85,564
69,070
77,981
91,272
54,661
39,902
49,965
54,840
(20,281
)
(16,322
)
(19,403
)
(20,269
)
34,380
23,580
30,562
34,571
150
(476
)
600
(269
)
34,530
23,104
31,162
34,302
.14
.09
.12
.14
.14
.09
.12
.13
(1)
Includes
Gains (losses) on divestitures and impairment
charges, net
, as described in Note 20.
(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.
110
Table of Contents
Charged
Charged
Balance at
(Credited) to
(Credited) to
Balance at
Beginning
Costs and
Other
End of
Description
of Period
Expenses
Accounts(1)
Write-Offs(2)
Period
(In thousands)
$
14,171
$
8,153
$
17,926
$
(26,277
)
$
13,973
$
19,735
$
11,346
$
56
$
(16,966
)
$
14,171
$
19,475
$
9,314
$
305
$
(9,359
)
$
19,735
$
3,135
$
$
$
(24
)
$
3,111
$
2,775
$
$
720
$
(360
)
$
3,135
$
2,825
$
$
$
(50
)
$
2,775
$
71,202
$
3,204
$
3,386
$
$
77,792
$
58,618
$
3,249
$
9,335
$
$
71,202
$
64,062
$
1,305
$
(6,749
)
$
$
58,618
$
(130,897
)
$
$
(3,863
)
$
$
(134,760
)
$
(137,769
)
$
$
6,872
$
$
(130,897
)
$
(143,730
)
$
$
5,961
$
$
(137,769
)
$
68,192
$
76
$
(4,654
)
$
$
63,614
$
54,225
$
13,967
$
$
$
68,192
$
50,931
$
(414
)
$
3,708
$
$
54,225
(1)
Primarily relates to acquisitions and dispositions of operations.
(2)
Uncollected receivables written off, net of recoveries.
111
Table of Contents
Item 9.
Changes
In and Disagreements with Accountants on Accounting and
Financial Disclosure
Item 9A.
Controls
and Procedures
Item 9B.
Other
Information
112
Table of Contents
Item 10.
Directors,
Executive Officers and Corporate Governance
Item 11.
Executive
Compensation
Item 12.
Security
Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters
Item 13.
Certain
Relationships and Related Transactions and Director
Independence
Item 14.
Principal
Accountant Fees and Services
Number of Securities
Remaining Available for
Number of Securities to be
Weighted-Average
Future Issuance Under
Issued upon Exercise of
Exercise Price of
Equity Compensation Plans
Outstanding Options,
Outstanding Options,
(Excluding Securities
Warrants and Rights
Warrants and Rights
Reflected in Column (a))
Plan Category
(a)
(b)
(c)
11,287,248
$
7.53
4,297,186
1,025,535
$
7.45
1,128,590
(2)
12,312,783
$
7.53
5,425,776
(1)
Includes options outstanding under the 1996 Nonqualified
Incentive Plan under which nonqualified stock options were
granted to employees who are not officers or directors. We have
1,025,535 total options outstanding under the 1996 Non-qualified
Incentive Plan. No shares of our common stock are available for
any future grants under this plan. See Note 15 in
Part II, Item 8. Financial Statements and
Supplementary Data, for a further description of 1996
Nonqualified Incentive Plan. This plan has not been submitted
for stockholder approval.
(2)
Includes an estimated 1,128,590 shares available under the
Employee Stock Purchase Plan. Under such plan, a dollar value of
shares (not an amount of shares) is registered. The above
estimate was determined by dividing
113
Table of Contents
(i) the remaining unissued dollar value of registered
shares at December 31, 2010, which was $9.3 million,
by (ii) the closing price of $8.25 per share of common
stock at December 31, 2010.
114
Table of Contents
Item 15.
Exhibits
and Financial Statement Schedule
115
Table of Contents
By:
Signature
Title
Date
Chairman of the Board
February 14, 2011
President, Chief Executive Officer, and Director (Principal
Executive Officer)
February 14, 2011
Senior Vice President, Chief Financial Officer, and Treasurer
(Principal Financial Officer)
February 14, 2011
Vice President and Corporate Controller (Principal Accounting
Officer)
February 14, 2011
Director
February 14, 2011
Director
February 14, 2011
Director
February 14, 2011
Director
February 14, 2011
Director
February 14, 2011
Director
February 14, 2011
116
Table of Contents
Signature
Title
Date
Director
February 14, 2011
Director
February 14, 2011
Director
February 14, 2011
*By
Attorney-In-Fact
for each of the
Persons indicated)
February 14, 2011
117
Table of Contents
Exhibit
Number
Description
3
.1
Restated Articles of Incorporation. (Incorporated by reference
to Exhibit 3.1 to Registration Statement
No. 333-10867
on
Form S-3).
3
.2
Articles of Amendment to Restated Articles of Incorporation.
(Incorporated by reference to Exhibit 3.1 to
Form 10-Q
for the fiscal quarter ended September 30, 1996).
3
.3
Statement of Resolution Establishing Series of Shares of
Series D Junior Participating Preferred Stock, dated
July 27, 1998. (Incorporated by reference to
Exhibit 3.2 to
Form 10-Q
for the fiscal quarter ended June 30, 1998).
3
.4
Bylaws, as amended. (Incorporated by reference to
Exhibit 3.1 to
Form 8-K
dated November 16, 2007).
4
.1
Senior Indenture dated as of February 1, 1993 by and
between the Company and The Bank of New York, as trustee.
(Incorporated by reference as Exhibit 4.1 to
Form S-4
filed September 2, 2004
(File No. 333-118763)).
4
.2
Agreement of Resignation, Appointment of Acceptance, dated
October 21, 2005, among the Company, The Bank of New York
and The Bank of New York Trust Company, N.A., appointing a
successor trustee for the Senior Indenture dated as of
February 1, 1993. (Incorporated by reference to
Exhibit 4.1 to
Form 10-Q
for the fiscal quarter ended June 30, 2005).
10
.1
Retirement Plan For Non-Employee Directors. (Incorporated by
reference to Exhibit 10.1 to
Form 10-K
for the fiscal year ended December 31, 1991).
10
.2
First Amendment to Retirement Plan For Non-Employee Directors.
(Incorporated by reference to Exhibit 10.2 to
Form 10-K
for the fiscal year ended December 31, 2000).
10
.3
Second Amendment to Retirement Plan for Non-Employee Directors
10
.4
Agreement dated May 14, 1992 between the Company, R. L.
Waltrip and related parties relating to life insurance.
(Incorporated by reference to Exhibit 10.4 to
Form 10-K
for the fiscal year ended December 31, 1992).
10
.5
Employment Agreement, dated December 28, 2006, between SCI
Executive Services, Inc. and R.L. Waltrip (including
Non-Competition Agreement and Amendment to Employment Agreement,
dated November 11, 1991, among the Company, R. L. Waltrip
and Claire Waltrip). (Incorporated by reference to
Exhibit 10.4 to
Form 10-K
for the fiscal year ended December 31, 2006).
10
.6
Amendment to Employment and Noncompetition Agreement, dated
November 30, 2007, between SCI Executive Services, Inc. and
R. L. Waltrip. (Incorporated by reference to Exhibit 10.5
to
Form 10-K
for the fiscal year ended December 31, 2007).
10
.7
Amendment to Employment and Noncompetition Agreement, dated
December 1, 2010, between SCI Executive Services, Inc. and
R.L. Waltrip.
10
.8
Employment and Noncompetition Agreement, dated January 1,
2004, between SCI Executive Services, Inc. and Thomas L. Ryan.
(Incorporated by reference to Exhibit 10.9 to
Form 10-K
for the fiscal year ended December 31, 2003).
10
.9
Addendum to Employment and Noncompetition Agreement, dated
December 1, 2005, between SCI Executive Services, Inc. and
Thomas L. Ryan. (Incorporated by reference to Exhibit 10.12
to
Form 10-K
for the fiscal year ended December 31, 2005).
10
.10
Amendment to Employment and Noncompetition Agreement, dated
November 30, 2007, between SCI Executive Services, Inc. and
Thomas L. Ryan. (Incorporated by reference to Exhibit 10.8
to
Form 10-K
for fiscal year ended December 31, 2007).
10
.11
Amendment to Employment and Noncompetition Agreement, dated
December 1, 2010, between SCI Executive Services, Inc. and
Thomas L. Ryan.
10
.12
Employment and Noncompetition Agreement, dated January 1,
2004, between SCI Executive Services, Inc. and Michael R. Webb.
(Incorporated by reference to Exhibit 10.10 to
Form 10-K
for the fiscal year ended December 31, 2003).
118
Table of Contents
Exhibit
Number
Description
10
.13
Addendum to Employment and Noncompetition Agreement, dated
December 1, 2005, between SCI Executive Services, Inc. and
Michael R. Webb. (Incorporated by reference to
Exhibit 10.14 to
Form 10-K
for the fiscal year ended December 31, 2005).
10
.14
Amendment to Employment and Noncompetition Agreement, dated
November 30, 2007, between SCI Executive Services, Inc. and
Michael R. Webb. (Incorporated by reference to
Exhibit 10.11 to
Form 10-K
for the fiscal year ended December 31, 2007).
10
.15
Amendment to Employment and Noncompetition Agreement, dated
December 1, 2010, between SCI Executive Services, Inc. and
Michael R. Webb.
10
.16
Employment and Noncompetition Agreement, dated December 28,
2006 between SCI Executive Services, Inc. and Eric D.
Tanzberger. (Incorporated by reference to Exhibit 10.11 to
Form 10-K
for the fiscal year ended December 31, 2006).
10
.17
Amendment to Employment and Noncompetition Agreement, dated
November 30, 2007, between SCI Executive Services, Inc. and
Eric D. Tanzberger. (Incorporated by reference to
Exhibit 10.13 to
Form 10-K
for the fiscal year ended December 31, 2007).
10
.18
Amendment to Employment and Noncompetition Agreement , dated
December 1, 2010, between SCI Executive Services, Inc. and
Eric D. Tanzberger
10
.19
Employment and Noncompetition Agreement, dated December 28,
2006, between SCI Executive Services, Inc. and Sumner J.
Waring, III. (Incorporated by reference to
Exhibit 10.9 to
Form 10-K
for the fiscal year ended December 31, 2006).
10
.20
Amendment to Employment and Noncompetition Agreement, dated
November 30, 2007, between SCI Executive Services, Inc. and
Sumner J. Waring, III. (Incorporated by reference to
Exhibit 10.15 to
Form 10-K
for the fiscal year ended December 31, 2009).
10
.21
Amendment to Employment and Noncompetition Agreement, dated
December 1, 2010, between SCI Executive Services, Inc. and
Sumner J. Waring, III.
10
.22
Form of Employment and Noncompetition Agreement pertaining to
non-senior officers. (Incorporated by reference to
Exhibit 10.12 to
Form 10-K
for the fiscal year ended December 31, 2003).
10
.23
Form of Addendum to Employment and Noncompetition Agreement
pertaining to the preceding exhibit. (Incorporated by reference
to Exhibit 10.20 to
Form 10-K
for the fiscal year ended December 31, 2005).
10
.24
Form of Amendment to Employment and Noncompetition Agreement
dated November 30, 2007, between SCI Executive Services,
Inc. and non-senior officers. (Incorporated by reference to
Exhibit 10.18 to
Form 10-K
for the fiscal year ended December 31, 2007).
10
.25
Form of Amendment to Employment and Noncompetition Agreement,
dated December 1, 2010, between SCI Executive Services,
Inc. and non-senior officers.
10
.26
Amended 1996 Incentive Plan. (Incorporated by reference to
Appendix A to Proxy Statement dated April 6, 2007).
10
.27
Split Dollar Life Insurance Plan. (Incorporated by reference to
Exhibit 10.36 to
Form 10-K
for the fiscal year ended December 31, 1995).
10
.28
Supplemental Executive Retirement Plan for Senior Officers (as
Amended and Restated Effective as of January 1, 1998).
(Incorporated by reference to Exhibit 10.28 to
Form 10-K
for the fiscal year ended December 31, 1998).
10
.29
First Amendment to Supplemental Executive Retirement Plan for
Senior Officers. (Incorporated by reference to
Exhibit 10.28 to
Form 10-K
for the fiscal year ended December 31, 2000).
10
.30
SCI 401(k) Retirement Savings Plan as Amended and Restated.
(Incorporated by reference to Exhibit 4.7 to Registration
Statement
No. 333-119681).
10
.31
First Amendment to the SCI 401(k) Retirement Savings Plan.
(Incorporated by reference to Exhibit 10.2 to
Form 10-Q
for the quarterly period ended September 30, 2004).
10
.32
Second Amendment to the SCI 401(k) Retirement Savings Plan, and
Third Amendment to the SCI 401(k) Retirement Savings Plan.
(Incorporated by reference to Exhibit 10.26 to
Form 10-K
for the fiscal year ended December 31, 2004).
119
Table of Contents
Exhibit
Number
Description
10
.33
Fourth Amendment to the SCI 401(k) Retirement Savings Plan.
(Incorporated by reference to Exhibit 10.27 to
Form 10-K
for the fiscal year ended December 31, 2006).
10
.34
Fifth Amendment to the SCI 401(k) Retirement Savings Plan.
(Incorporated by reference to Exhibit 10.30 to
Form 10-K
for the fiscal year ended December 31, 2007).
10
.35
Sixth Amendment to the SCI 401(k) Retirement Savings Plan.
(Incorporated by reference to Exhibit 10.30 to
Form 10-K
for the fiscal year ended December 31, 2008).
10
.36
Amended and Restated Director Fee Plan. (Incorporated by
reference to Annex A to Proxy Statement dated
April 17, 2006).
10
.37
Employee Stock Purchase Plan. (Incorporated by reference to
Exhibit 1.1 to Registration Statement
No. 2-62484
on
Form S-8).
10
.38
Amendment No. 1 to the Employee Stock Purchase Plan.
(Incorporated by reference to Exhibit 15.1 to Registration
Statement
No. 2-62484
on
Form S-8).
10
.39
Amendment No. 2 to the Employee Stock Purchase Plan.
(Incorporated by reference to Exhibit 28.3 to Registration
Statement
No. 33-25061
on
Form S-8).
10
.40
Amendment No. 3 to the Employee Stock Purchase Plan.
(Incorporated by reference to Exhibit 28.4 to Registration
Statement
No. 33-35708
on
Form S-8).
10
.41
Amendment No. 4 to the Employee Stock Purchase Plan.
(Incorporated by reference to Exhibit 10.34 to
Form 10-K
for the fiscal year ended December 31, 2009.)
10
.42
Amendment No. 5 to the Employee Stock Purchase Plan.
(Incorporated by reference to Exhibit 10.31 to
Form 10-K
for the fiscal year ended December 31, 1999).
10
.43
Amendment No. 6 to the Employee Stock Purchase Plan.
(Incorporated by reference to Exhibit 10.44 to
Form 10-K
for the fiscal year ended December 31, 2002).
10
.44
Amendment No. 7 to the Employee Stock Purchase Plan.
(Incorporated by reference to Exhibit 10.45 to
Form 10-K
for the fiscal year ended December 31, 2002).
10
.45
Agreement between Merrill Lynch Canada Inc. and Service
Corporation International. (Incorporated by reference to
Exhibit 28.5 to Post-Effective Amendment No. 1 to
Registration Statement
No. 33-8907
on
Form S-8).
10
.46
First Amendment to Agreement between Merrill Lynch Canada Inc.
and Service Corporation International. (Incorporated by
reference to Exhibit 4.2 to Current Report on
Form 8-K
dated December 21, 1993).
10
.47
Employee Stock Purchase Plan Administration Agreement dated
July 25, 2001 between Service Corporation International
(Canada) Limited and Fastrak Systems Inc. (Incorporated by
reference to Exhibit 10.48 to
Form 10-K
for the fiscal year ended December 31, 2002).
10
.48
Form of Indemnification Agreement for officers and directors.
(Incorporated by reference to Exhibit 10.1 to
Form 10-Q
for the quarterly period ended September 30, 2004).
10
.49
Form of Executive Deferred Compensation Plan as Amended and
Restated Effective December 8, 2009. (Incorporated by
reference to Exhibit 10.42 to
Form 10-K
for the fiscal year ended December 31, 2009.)
10
.50
Amendment One to Executive Deferred Compensation Plan.
10
.51
Form of Performance Unit Grant Award Agreement. (Incorporated by
reference to Exhibit 10.43 to
Form 10-K
for the fiscal year ended December 31, 2008).
10
.52
Amended and Restated Revolving Credit Agreement, dated
November 18, 2009 among Service Corporation International,
the lenders party thereto, and JPMorgan Chase Bank, N.A., as
Administrative Agent. (Incorporated by reference to
Exhibit 10.1 to Current Report on
Form 8-K
dated November 24, 2009).
12
.1
Ratio of Earnings to Fixed Charges.
21
.1
Subsidiaries of the Company.
23
.1
Consent of Independent Registered Public Accounting Firm
(PricewaterhouseCoopers LLP).
24
.1
Powers of Attorney.
120
Table of Contents
Exhibit
Number
Description
31
.1
Certification of Thomas L. Ryan as Principal Executive Officer
in satisfaction of Section 302 of the Sarbanes-Oxley Act of
2002.
31
.2
Certification of Eric D. Tanzberger as Principal Financial
Officer in satisfaction of Section 302 of the
Sarbanes-Oxley Act of 2002.
32
.1
Certification of Periodic Financial Reports by Thomas L. Ryan as
Principal Executive Officer in satisfaction of Section 906
of the Sarbanes- Oxley Act of 2002.
32
.2
Certification of Periodic Financial Reports by Eric D.
Tanzberger as Principal Financial Officer in satisfaction of
Section 906 of the Sarbanes-Oxley Act of 2002.
101
The following materials from Service Corporation
Internationals Annual Report on
Form 10-K
for the year ended December 31, 2010, formatted in XBRL
(Extensible Business Reporting Language): (i) Consolidated
Balance Sheet, (ii) Consolidated Statement of Operations,
(iii) Consolidated Statement of Equity,
(iv) Consolidated Statement of Cash Flows, and
(v) Notes to Consolidated Financial Statements, tagged as
blocks of text.
121
By:
|
/s/ Gregory T. Sangalis
|
|||
|
Senior Vice President | |||
|
General Counsel & Secretary |
1. | Section 1.5(f) . Section 1.5(f) is hereby amended to be and read in its entirety as follows: | ||
(f) Change of Control. If (i) a Change of Control occurs during the Employment Term and (ii) within twenty four months after such Change of Control the Employees employment is (x) terminated by the Company other than for Cause, death or disability, or (y) terminated by Employee after an occurrence of any Good Reason (except under circumstances which would be grounds for termination of Employee by the Company for Cause), then the Company shall be relieved of all of its obligations under this Agreement, except that the Company shall pay or provide the Employee (or his estate, in the event of his subsequent death) the following amounts: | |||
(1) Three, multiplied by the sum of Employees most recently set Target Bonus plus his annual salary in effect immediately prior to the Change of Control, which amount will be paid in a lump sum in cash within 30 days after the Employees date of termination; and | |||
(2) Partial Bonus, to be paid within 30 days after the Employees date of termination; and | |||
(3) Continuation of Employees Group Health and Dental coverage and Exec-U-Care program (including pursuant to COBRA to the extent applicable) for a period of eighteen months beginning the month following such date of termination, with Employee paying such amount of premiums as would have been applicable if Employee had remained an employee of the Company. | |||
The obligations of the Company under this Section 1.5(f) shall remain in effect for twenty-four months after any Change of Control that occurs during the Employment Term notwithstanding the fact that such twenty four month period may extend beyond the expiration of the Employment Term. |
Page 1 of 2
SCI EXECUTIVE SERVICES, INC.
|
||||
By: | /s/ Curtis G. Briggs | |||
Curtis G. Briggs, Vice President | ||||
EMPLOYEE
|
||||
/s/ Robert L. Waltrip | ||||
Robert L. Waltrip | ||||
Page 2 of 2
1. | Section 1.5(f) . Section 1.5(f) is hereby amended to be and read in its entirety as follows: | ||
(f) Change of Control. If (i) a Change of Control occurs during the Employment Term and (ii) within twenty four months after such Change of Control the Employees employment is (x) terminated by the Company other than for Cause, death or disability, or (y) terminated by Employee after an occurrence of any Good Reason (except under circumstances which would be grounds for termination of Employee by the Company for Cause), then the Company shall be relieved of all of its obligations under this Agreement, except that the Company shall pay or provide the Employee (or his estate, in the event of his subsequent death) the following amounts: | |||
(1) Three, multiplied by the sum of Employees most recently set Target Bonus plus his annual salary in effect immediately prior to the Change of Control, which amount will be paid in a lump sum in cash within 30 days after the Employees date of termination; and | |||
(2) Partial Bonus, to be paid within 30 days after the Employees date of termination; and | |||
(3) Continuation of Employees Group Health and Dental coverage and Exec-U-Care program (including pursuant to COBRA to the extent applicable) for a period of eighteen months beginning the month following such date of termination, with Employee paying such amount of premiums as would have been applicable if Employee had remained an employee of the Company. | |||
The obligations of the Company under this Section 1.5(f) shall remain in effect for twenty-four months after any Change of Control that occurs during the Employment Term notwithstanding the fact that such twenty four month period may extend beyond the expiration of the Employment Term. |
Page 1 of 2
2. | The Employment Term of the Agreement is hereby extended to December 31, 2011. |
SCI EXECUTIVE SERVICES, INC.
|
||||
By: | /s/ Curtis G. Briggs | |||
Curtis G. Briggs, Vice President | ||||
EMPLOYEE
|
||||
/s/ Thomas L. Ryan | ||||
Thomas L. Ryan | ||||
Page 2 of 2
1. | Section 1.5(f) . Section 1.5(f) is hereby amended to be and read in its entirety as follows: | ||
(f) Change of Control. If (i) a Change of Control occurs during the Employment Term and (ii) within twenty four months after such Change of Control the Employees employment is (x) terminated by the Company other than for Cause, death or disability, or (y) terminated by Employee after an occurrence of any Good Reason (except under circumstances which would be grounds for termination of Employee by the Company for Cause), then the Company shall be relieved of all of its obligations under this Agreement, except that the Company shall pay or provide the Employee (or his estate, in the event of his subsequent death) the following amounts: | |||
(1) Three, multiplied by the sum of Employees most recently set Target Bonus plus his annual salary in effect immediately prior to the Change of Control, which amount will be paid in a lump sum in cash within 30 days after the Employees date of termination; and | |||
(2) Partial Bonus, to be paid within 30 days after the Employees date of termination; and | |||
(3) Continuation of Employees Group Health and Dental coverage and Exec-U-Care program (including pursuant to COBRA to the extent applicable) for a period of eighteen months beginning the month following such date of termination, with Employee paying such amount of premiums as would have been applicable if Employee had remained an employee of the Company. | |||
The obligations of the Company under this Section 1.5(f) shall remain in effect for twenty-four months after any Change of Control that occurs during the Employment Term notwithstanding the fact that such twenty four month period may extend beyond the expiration of the Employment Term. |
Page 1 of 2
2. | The Employment Term of the Agreement is hereby extended to December 31, 2011. |
SCI EXECUTIVE SERVICES, INC.
|
||||
By: | /s/ Curtis G. Briggs | |||
Curtis G. Briggs, Vice President | ||||
EMPLOYEE
|
||||
/s/ Michael R. Webb | ||||
Michael R. Webb | ||||
Page 2 of 2
1. | Section 1.5(f) . Section 1.5(f) is hereby amended to be and read in its entirety as follows: | ||
(f) Change of Control. If (i) a Change of Control occurs during the Employment Term and (ii) within twenty four months after such Change of Control the Employees employment is (x) terminated by the Company other than for Cause, death or disability, or (y) terminated by Employee after an occurrence of any Good Reason (except under circumstances which would be grounds for termination of Employee by the Company for Cause), then the Company shall be relieved of all of its obligations under this Agreement, except that the Company shall pay or provide the Employee (or his estate, in the event of his subsequent death) the following amounts: | |||
(1) Three, multiplied by the sum of Employees most recently set Target Bonus plus his annual salary in effect immediately prior to the Change of Control, which amount will be paid in a lump sum in cash within 30 days after the Employees date of termination; and | |||
(2) Partial Bonus, to be paid within 30 days after the Employees date of termination; and | |||
(3) Continuation of Employees Group Health and Dental coverage and Exec-U-Care program (including pursuant to COBRA to the extent applicable) for a period of eighteen months beginning the month following such date of termination, with Employee paying such amount of premiums as would have been applicable if Employee had remained an employee of the Company. | |||
The obligations of the Company under this Section 1.5(f) shall remain in effect for twenty-four months after any Change of Control that occurs during the Employment Term notwithstanding the fact that such twenty four month period may extend beyond the expiration of the Employment Term. |
Page 1 of 2
2. | The Employment Term of the Agreement is hereby extended to December 31, 2011. |
SCI EXECUTIVE SERVICES, INC.
|
||||
By: | /s/ Curtis G. Briggs | |||
Curtis G. Briggs, Vice President | ||||
EMPLOYEE
|
||||
/s/ Eric D. Tanzberger | ||||
Eric D. Tanzberger | ||||
Page 2 of 2
1. | Section 1.5(f) . Section 1.5(f) is hereby amended to be and read in its entirety as follows: | ||
(f) Change of Control. If (i) a Change of Control occurs during the Employment Term and (ii) within twenty four months after such Change of Control the Employees employment is (x) terminated by the Company other than for Cause, death or disability, or (y) terminated by Employee after an occurrence of any Good Reason (except under circumstances which would be grounds for termination of Employee by the Company for Cause), then the Company shall be relieved of all of its obligations under this Agreement, except that the Company shall pay or provide the Employee (or his estate, in the event of his subsequent death) the following amounts: | |||
(1) Three, multiplied by the sum of Employees most recently set Target Bonus plus his annual salary in effect immediately prior to the Change of Control, which amount will be paid in a lump sum in cash within 30 days after the Employees date of termination; and | |||
(2) Partial Bonus, to be paid within 30 days after the Employees date of termination; and | |||
(3) Continuation of Employees Group Health and Dental coverage and Exec-U-Care program (including pursuant to COBRA to the extent applicable) for a period of eighteen months beginning the month following such date of termination, with Employee paying such amount of premiums as would have been applicable if Employee had remained an employee of the Company. | |||
The obligations of the Company under this Section 1.5(f) shall remain in effect for twenty-four months after any Change of Control that occurs during the Employment Term notwithstanding the fact that such twenty four month period may extend beyond the expiration of the Employment Term. |
Page 1 of 2
2. | The Employment Term of the Agreement is hereby extended to December 31, 2011. |
SCI EXECUTIVE SERVICES, INC.
|
||||
By: | /s/ Curtis G. Briggs | |||
Curtis G. Briggs, Vice President | ||||
EMPLOYEE
|
||||
/s/ Sumner J. Waring, III | ||||
Sumner J. Waring, III | ||||
Page 2 of 2
1. | Section 1.5(f) . Section 1.5(f) is hereby amended to be and read in its entirety as follows: | ||
(f) Change of Control. If (i) a Change of Control occurs during the Employment Term and (ii) within twenty four months after such Change of Control the Employees employment is (x) terminated by the Company other than for Cause, death or disability, or (y) terminated by Employee after an occurrence of any Good Reason (except under circumstances which would be grounds for termination of Employee by the Company for Cause), then the Company shall be relieved of all of its obligations under this Agreement, except that the Company shall pay or provide the Employee (or his estate, in the event of his subsequent death) the following amounts: | |||
(1) Two, multiplied by the sum of Employees most recently set Target Bonus plus his annual salary in effect immediately prior to the Change of Control, which amount will be paid in a lump sum in cash within 30 days after the Employees date of termination; and | |||
(2) Partial Bonus, to be paid within 30 days after the Employees date of termination; and | |||
(3) Continuation of Employees Group Health and Dental coverage and Exec-U-Care program (including pursuant to COBRA to the extent applicable) for a period of eighteen months beginning the month following such date of termination, with Employee paying such amount of premiums as would have been applicable if Employee had remained an employee of the Company. | |||
The obligations of the Company under this Section 1.5(f) shall remain in effect for twenty-four months after any Change of Control that occurs during the Employment Term notwithstanding the fact that such twenty four month period may extend beyond the expiration of the Employment Term. |
Page 1 of 2
2. | The Employment Term of the Agreement is hereby extended to December 31, 2011. |
SCI EXECUTIVE SERVICES, INC.
|
||||
By: | ||||
Curtis G. Briggs, Vice President | ||||
EMPLOYEE
|
||||
Page 2 of 2
1
2
SERVICE CORPORATION INTERNATIONAL
|
||||
By: | /s/ Jane D. Jones | |||
Its: | Vice President Human Resources | |||
3
Twelve Months Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Pretax income from continuing operations
|
$ | 219,459 | $ | 199,368 | $ | 163,295 | $ | 386,987 | $ | 97,449 | ||||||||||
Add fixed charges as adjusted (from below)
|
135,137 | 135,341 | 141,924 | 155,643 | 129,794 | |||||||||||||||
$ | 354,596 | $ | 334,709 | $ | 305,219 | $ | 542,630 | $ | 227,243 | |||||||||||
Fixed charges:
|
||||||||||||||||||||
Interest expense:
|
||||||||||||||||||||
Corporate
|
$ | 123,930 | $ | 121,406 | $ | 130,701 | $ | 140,593 | $ | 107,071 | ||||||||||
Amortization of debt cost
|
4,266 | 7,575 | 3,573 | 6,261 | 16,328 | |||||||||||||||
1/3 of rental expense
|
6,941 | 6,360 | 7,650 | 8,789 | 6,395 | |||||||||||||||
Fixed charges
|
$ | 135,137 | $ | 135,341 | $ | 141,924 | $ | 155,643 | $ | 129,794 | ||||||||||
Ratio (earnings divided by fixed charges)
|
2.62 | 2.47 | 2.15 | 3.49 | 1.75 | |||||||||||||||
1
February 1, 2011 | ||||
Ownership | ||||
Alderwoods Group, LLC (DE LLC) California subsidiaries
|
||||
Alderwoods Group (California), Inc.
|
100 | % | ||
Advance Funeral Insurance Services
|
100 | % | ||
Alderwoods (Texas), Inc.
|
100 | % | ||
Directors Succession Planning, Inc.
|
100 | % | ||
Directors Succession Planning II, Inc.
|
100 | % | ||
Earthman Holdings, Inc. (TX Corp) California subsidiary
|
||||
Earthman LP, Inc.
|
100 | % | ||
Rose Hills Holdings Corp. (DE Corp)
|
||||
Rose Hills Company (DE Corp) California subsidiary
|
||||
RH Mortuary Corporation
|
100 | % | ||
RH Cemetery Corp. (DE Corp) California subsidiary
|
||||
Workman Mill Investment Company
|
100 | % | ||
DSP General Partner, Inc. (TX Corp) California subsidiary
|
||||
DSP General Partner II, Inc.
|
100 | % | ||
S & H Properties and Enterprises, Inc. (WA Corp) California subsidiaries
|
||||
Universal Memorial Centers V, Inc.
|
100 | % | ||
Universal Memorial Centers VI, Inc.
|
100 | % | ||
|
||||
COLORADO
|
||||
SCI Funeral Services, LLC (Iowa LLC) Colorado subsidiary
|
||||
SCI Colorado Funeral Services, Inc.
|
100 | % | ||
Alderwoods Group, LLC (DE LLC) Colorado subsidiary
|
||||
Alderwoods (Colorado), Inc.
|
100 | % | ||
|
||||
CONNECTICUT
|
||||
SCI Funeral Services, LLC (Iowa LLC) Connecticut subsidiary
|
||||
SCI Connecticut Funeral Services, LLC
|
100 | % | ||
Alderwoods Group, LLC (DE LLC) Connecticut subsidiary
|
||||
Alderwoods (Connecticut), Inc.
|
51.8 | % | ||
Alderwoods (New York), LLC (NY LLC)Connecticut subsidiary
|
||||
Alderwoods (Connecticut), Inc.
|
48.2 | % | ||
|
||||
DELAWARE
|
||||
Christian Funeral Services, Inc.
|
100 | % | ||
SCI Funeral Services, LLC (Iowa LLC)
|
||||
Affiliated Family Funeral Service, Inc. (MA Corp) Delaware subsidiaries
|
||||
ECI-Rapino Memorial Home, Inc.
|
49 | % | ||
ECI Services of Maine, Inc.
|
100 | % | ||
ECI Services of New Hampshire, Inc.
|
100 | % | ||
Memorial Guardian Plans, Inc.
|
100 | % | ||
SCI California Funeral Services, Inc. (CA Corp) Delaware subsidiaries
|
||||
California Cemetery and Funeral Services, LLC
|
5 | % | ||
ECI Capital Corporation
|
100 | % | ||
California Cemetery and Funeral Services, LLC
|
95 | % | ||
SCI Georgia Funeral Services, Inc.
|
100 | % | ||
SCI Services (Alabama), Inc.
|
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, Inc.
|
100 | % | ||
CemCare, Inc.
|
100 | % |
2
February 1, 2011 | ||||
Ownership | ||||
PSI Funding, Inc.
|
100 | % | ||
SCI Virginia Funeral Services, Inc. (VA Corp) Delaware subsidiary
|
||||
SCI Loan Services, LLC
|
100 | % | ||
Salvatore Air Transportation Corp.
|
100 | % | ||
SCI Executive Services, Inc.
|
100 | % | ||
SCI Financial Services, Inc.
|
100 | % | ||
Making Everlasting Memories, L.L.C.
|
80 | % | ||
SCI Investment Services, Inc.
|
100 | % | ||
SCI International, LLC
|
100 | % | ||
SCI Cerberus, LLC
|
100 | % | ||
Service Corporation International (Canada) ULC (BC ULC) DE subsidiary
|
||||
SCI Funeral & Cemetery Purchasing Cooperative, Inc.
|
25 | % | ||
SCI Special, Inc.
|
100 | % | ||
SCI Administrative Services, LLC-
General Partner of
|
100 | % | ||
SCI Management L.P.
|
1 | % | ||
Remembrance Memorial Traditions, LLC-
Limited Partner of
|
100 | % | ||
SCI Management L.P.
|
99 | % | ||
Dignity Memorial Network, Inc.
|
100 | % | ||
SCI Western Market Support Center, Inc. (CA Corp)
|
||||
SCI Funeral & Cemetery Purchasing Cooperative, Inc.
|
25 | % | ||
SCI EOps HQ, Inc. (NY Corp)
|
||||
SCI Eastern Market Support Center, L.P. (TX LP)
|
||||
SCI Funeral & Cemetery Purchasing Cooperative, Inc.
|
25 | % | ||
SCI Houston Hub, Inc. (TX Corp)
|
||||
SCI Houston Market Support Center, L.P. (TX LP)
|
||||
SCI Funeral & Cemetery Purchasing Cooperative, Inc.
|
25 | % | ||
SCI Capital Corporation
|
100 | % | ||
Piney Grove, LLC
|
100 | % | ||
Stormy Sky, LLC
|
100 | % | ||
Investment Capital Corporation (TX Corp) Delaware subsidiary
|
||||
Wilson Financial Group, Inc.
|
53.30 | % | ||
Amistad Corporation
|
100 | % | ||
Wilson Holdings, Inc. (TX Corp) Delaware subsidiary
|
||||
M.J. Edwards Hillside Chapel, Inc.
|
100 | % | ||
Alderwoods Group, LLC
|
100 | % | ||
Alderwoods (Mississippi), Inc.
|
100 | % | ||
American Burial and Cremation Centers, Inc.
|
100 | % | ||
H. P. Brandt Funeral Home, Inc.
|
100 | % | ||
Osiris Holding Corporation
|
100 | % | ||
Rose Hills Holdings Corp.
|
100 | % | ||
Rose Hills Company
|
100 | % | ||
RH Cemetery Corp.
|
100 | % | ||
SCI International, LLC (DE LLC)
|
||||
SCI Cerberus, LLC (DE LLC)
|
||||
Keystone Canada Corp. (Ontario Corp)
|
||||
Keystone Group Holdings, Inc.
|
100 | % | ||
Keystone Advance Planning, Inc.
|
100 | % | ||
Keystone America, Inc.
|
100 | % | ||
Keystone Kentucky, Inc.
|
99 | % | ||
Keystone Michigan, Inc.
|
100 | % | ||
Healy-Hahn Funeral Properties, Inc.
|
100 | % | ||
HHFP, Inc.
|
100 | % | ||
|
||||
DISTRICT OF COLUMBIA
|
||||
SCI Funeral Services, LLC (Iowa LLC) DC subsidiaries
|
||||
Joseph Gawlers Sons, LLC
|
100 | % | ||
Witzke Funeral Homes, Inc.
|
100 | % |
3
4
February 1, 2011 | ||||
Ownership | ||||
Osiris Holding Corporation (DE Corp) Illinois subsidiary
|
||||
Alderwoods (Chicago Central), Inc.
|
29 | % | ||
Elmwood Acquisition Corporation
|
100 | % | ||
Oakwoods Cemetery Association
|
100 | % | ||
Pineview Memorial Park, Inc.
|
100 | % | ||
Ridgewood Cemetery Company, Inc.
|
100 | % | ||
Ruzich Funeral Home, Inc.
|
100 | % | ||
Woodlawn Cemetery of Chicago, 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 | % | ||
|
||||
IOWA
|
||||
SCI Funeral Services, LLC
|
100 | % | ||
SCI Iowa Funeral Services, Inc.
|
100 | % | ||
|
||||
KANSAS
|
||||
SCI Funeral Services, LLC (Iowa LLC) Kansas subsidiary
|
||||
SCI Kansas Funeral Services, Inc.
|
100 | % | ||
Alderwoods Group, LLC (DE LLC) Kansas subsidiary
|
||||
Alderwoods (Kansas), Inc.
|
100 | % | ||
|
||||
KENTUCKY
|
||||
SCI Funeral Services, LLC (Iowa LLC) Kentucky subsidiary
|
||||
SCI Kentucky Funeral Services, Inc.
|
99 | % | ||
Alderwoods Group, LLC (DE LLC) Kentucky subsidiaries
|
||||
Alderwoods (Partner), Inc.
|
100 | % | ||
|
||||
LOUISIANA
|
||||
SCI Funeral Services, LLC (Iowa LLC) Louisiana subsidiary
|
||||
SCI Louisiana Funeral Services, Inc.
|
100 | % | ||
|
||||
MARYLAND
|
||||
SCI Funeral Services, LLC (Iowa LLC) Maryland subsidiaries
|
||||
SCI Maryland Funeral Services, Inc.
|
100 | % | ||
BAMFH, Inc.
|
100 | % | ||
Burgee-Henss-Seitz Funeral Home, Inc.
|
100 | % | ||
Charles S. Zeiler & Son, Inc.
|
100 | % | ||
Danzansky-Goldberg Memorial Chapels, Inc.
|
100 | % | ||
Edward Sagel Funeral Direction, Inc.
|
100 | % | ||
Fleck Funeral Home, Inc.
|
100 | % | ||
Gary L. Kaufman Funeral Home at
Meadowridge Memorial Park, Inc.
|
100 | % | ||
Gary L. Kaufman Funeral Home Southwest, Inc.
|
100 | % | ||
George Washington Cemetery Company, LLC
|
100 | % | ||
Lemmon Funeral Home of Dulaney Valley, Inc.
|
100 | % | ||
Loring Byers Funeral Directors, Inc.
|
100 | % | ||
Miller-Dippel Funeral Home, Inc.
|
100 | % | ||
Moran-Ashton Funeral Home, Inc.
|
100 | % | ||
National Cremation Service, Inc.
|
100 | % | ||
Sterling-Ashton-Schwab Funeral Home, Inc.
|
100 | % | ||
Sterling-Ashton-Schwab-Witzke Funeral Home
of Catonsville, Inc.
|
100 | % |
5
February 1, 2011 | ||||
Ownership | ||||
Alderwoods Group, LLC (DE LLC) Maryland subsidiary
|
||||
Alderwoods (Maryland), Inc.
|
100 | % | ||
SCI International, LLC (DE LLC)
|
||||
SCI Cerberus, LLC (DE LLC)
|
||||
Keystone Canada Corp. (Ontario Corp)
|
||||
Keystone Group Holdings, Inc. (DE Corp)
|
||||
Keystone America, Inc. (DE Corp) Maryland subsidiaries
|
||||
Schimunek Funeral Home, Inc.
|
100 | % | ||
The Schimunek Funeral Home of
Bel Air, Inc.
|
100 | % | ||
|
||||
MASSACHUSETTS
|
||||
SCI Funeral Services, LLC (Iowa LLC) Massachusetts subsidiaries
|
||||
Affiliated Family Funeral Service, Inc.
|
100 | % | ||
AFFS Boston, Inc.
|
10 | % | ||
AFFS North, Inc.
|
42 | % | ||
AFFS Norwood, Inc.
|
45 | % | ||
AFFS Quincy, Inc.
|
11 | % | ||
AFFS Southcoast East, Inc.
|
22 | % | ||
AFFS Southcoast West, Inc.
|
11 | % | ||
AFFS West, Inc.
|
37 | % | ||
Perlman Funeral Home, Inc.
|
30 | % | ||
Stanetsky Memorial Chapels, Inc.
|
33 | % | ||
Sullivan Funeral Homes, Inc.
|
12 | % | ||
Alderwoods Group, LLC (DE LLC) Massachusetts subsidiaries
|
||||
Cuffe-McGinn Funeral Home, Inc.
|
39 | % | ||
Doane Beal & Ames, Inc.
|
36 | % | ||
Ernest A. Richardson Funeral Home, Inc.
|
49 | % | ||
Gaffey Funeral Home, Inc.
|
49 | % | ||
Alderwoods (Massachusetts), Inc.
|
100 | % | ||
SCI International, LLC (DE LLC)
|
||||
SCI Cerberus, LLC (DE LLC)
|
||||
Keystone Canada Corp. (Ontario Corp)
|
||||
Keystone Group Holdings, Inc. (DE Corp)
|
||||
Keystone America, Inc. (DE Corp) Mass. subsidiary
|
||||
Nickerson-Bourne Funeral Homes, Inc.
|
49 | % | ||
|
||||
MICHIGAN
|
||||
SCI Funeral Services, LLC (Iowa LLC) Michigan subsidiary
|
||||
SCI Michigan Funeral Services, Inc.
|
100 | % | ||
Alderwoods Group, LLC (DE LLC) Michigan subsidiary
|
||||
Alderwoods (Michigan), Inc.
|
100 | % | ||
Alderwoods (Virginia), Inc. (VA Corp) Michigan subsidiaries
|
||||
AMG, Inc.
|
100 | % | ||
WMP, Inc.
|
100 | % | ||
|
||||
MINNESOTA
|
||||
SCI Funeral Services, LLC (Iowa LLC) Minnesota subsidiaries
|
||||
SCI Minnesota Funeral Services, Inc.
|
100 | % | ||
Alderwoods Group, LLC (DE LLC) Minnesota subsidiary
|
||||
Alderwoods (Minnesota), Inc.
|
100 | % | ||
|
||||
MISSISSIPPI
|
||||
SCI Funeral Services, LLC (Iowa LLC) Mississippi subsidiary
|
||||
SCI Mississippi Funeral Services, Inc.
|
100 | % | ||
Alderwoods Group, LLC (DE LLC) Mississippi subsidiaries
|
6
February 1, 2011 | ||||
Ownership | ||||
Family Care, Inc.
|
100 | % | ||
Alderwoods (Mississippi), Inc. (DE Corp) Mississippi subsidiaries
|
||||
Stephens Burial Association, Inc.
|
100 | % | ||
Stephens Funeral Benefit Association, Inc.
|
100 | % | ||
Stephens Funeral Fund, Inc.
|
100 | % | ||
|
||||
MISSOURI
|
||||
SCI Funeral Services, LLC (Iowa LLC) Missouri subsidiaries
|
||||
SCI Missouri Funeral Services, Inc.
|
100 | % | ||
Memorial Guardian Plans, Inc.
|
100 | % | ||
Alderwoods Group, LLC (DE LLC) Missouri subsidiary
|
||||
Alderwoods (Missouri), Inc.
|
100 | % | ||
|
||||
MONTANA
|
||||
Alderwoods Group, LLC (DE LLC) Montana subsidiary
|
||||
Alderwoods (Montana), Inc.
|
100 | % | ||
|
||||
NEBRASKA
|
||||
SCI Funeral Services, LLC (Iowa LLC) Nebraska subsidiary
|
||||
SCI Nebraska Funeral Services, Inc.
|
100 | % | ||
|
||||
NEVADA
|
||||
Alderwoods Group, LLC (DE LLC) Nevada subsidiary
|
||||
Alderwoods (Nevada), Inc.
|
100 | % | ||
Knauss Enterprises Limited Liability Company
|
100 | % | ||
Palm Mortuary, Inc.
|
100 | % | ||
|
||||
NEW HAMPSHIRE
|
||||
Alderwoods Group, LLC (DE LLC) New Hampshire subsidiaries
|
||||
McHugh Funeral Home, Inc.
|
100 | % | ||
Robert Douglas Goundrey Funeral Home, Inc.
|
100 | % | ||
St. Laurent Funeral Home, Inc.
|
100 | % | ||
Alderwoods (Massachusetts), Inc. New Hampshire subsidiary
|
||||
ZS Acquisition, Inc.
|
100 | % | ||
|
||||
NEW JERSEY
|
||||
SCI Funeral Services, LLC (Iowa LLC) New Jersey subsidiaries
|
||||
SCI New Jersey Funeral Services, Inc.
|
100 | % | ||
Garden State Crematory, Inc.
|
100 | % | ||
Wien & Wien, Inc.
|
100 | % | ||
SCI International, LLC (DE Corp)
|
||||
SCI Cerberus, LLC (DE Corp)
|
||||
Keystone Canada Corp. (Ontario Corp)
|
||||
Keystone Group Holdings, Inc. (DE Corp)
|
||||
Keystone America, Inc. (DE Corp) New Jersey subsidiary
|
||||
Zarro Funeral Home
|
100 | % | ||
|
||||
NEW MEXICO
|
||||
SCI Funeral Services, LLC (Iowa LLC) New Mexico subsidiary
|
||||
SCI New Mexico Funeral Services, Inc.
|
100 | % | ||
Alderwoods Group, LLC (DE LLC) New Mexico subsidiary
|
||||
Alderwoods (New Mexico), Inc.
|
100 | % | ||
|
||||
NEW YORK
|
||||
SCI Funeral Services, LLC (Iowa LLC) New York subsidiaries
|
||||
SCI Funeral Services of New York, Inc.
|
100 | % | ||
Alderwoods (New York), LLC
|
100 | % |
7
February 1, 2011 | ||||
Ownership | ||||
Chas. Peter Nagel, LLC
|
100 | % | ||
I. J. Morris, LLC
|
100 | % | ||
New York Funeral Chapels, LLC
|
100 | % | ||
New York Marker, LLC
|
100 | % | ||
Thomas M. Quinn & Sons, LLC
|
100 | % | ||
SCI Special, Inc. (DE Corp)
|
||||
SCI Administrative Services, LLC (DE LLC)
|
||||
SCI Management L.P.(DE LP) New York subsidiary
|
||||
SCI EOps HQ, Inc.
|
100 | % | ||
|
||||
NORTH CAROLINA
|
||||
SCI Funeral Services, LLC (Iowa LLC) North Carolina subsidiary
|
||||
SCI North Carolina Funeral Services, LLC
|
100 | % | ||
SCI Special, Inc. (DE Corp)
|
||||
SCI Capital Corporation (DE Corp)
|
||||
Investment Capital Corporation (TX Corp)
|
||||
Wilson Financial Group, Inc. (DE Corp)
|
||||
Wilson Holdings, Inc. (TX Corp) N. Carolina subsidiary
|
||||
Hamilton Funeral Chapel, Inc.
|
100 | % | ||
Alderwoods Group, LLC (DE LLC) North Carolina subsidiaries
|
||||
Alderwoods (North Carolina), Inc.
|
48.8 | % | ||
Westminster Gardens, Inc.
|
100 | % | ||
Carothers Holding Company, LLC
|
100 | % | ||
Alderwoods (North Carolina), Inc.
|
0.7 | % | ||
MFH, L.L.C.
|
100 | % | ||
Lineberry Group, Inc.
|
100 | % | ||
Alderwoods (North Carolina), Inc.
|
0.5 | % | ||
Alderwoods (Georgia), Inc. (GA Corp) North Carolina subsidiary
|
||||
Reeves, Inc.
|
100 | % | ||
|
||||
OHIO
|
||||
SCI Funeral Services, LLC (Iowa LLC) Ohio subsidiaries
|
||||
SCI Ohio Funeral Services, Inc.
|
100 | % | ||
The Knollwood Cemetery Company
|
100 | % | ||
SCI Special, Inc. (DE Corp)
|
||||
SCI Capital Corporation (DE Corp)
|
||||
Investment Capital Corporation (TX Corp)
|
||||
Wilson Financial Group, Inc. (DE Corp)
|
||||
Wilson Holdings, Inc. (TX Corp) Ohio subsidiary
|
||||
Dale Funeral Home, Inc.
|
90 | % | ||
Alderwoods Group, LLC (DE LLC) Ohio subsidiaries
|
||||
Alderwoods (Ohio) Cemetery Management, Inc.
|
100 | % | ||
Alderwoods (Ohio) Funeral Home, Inc.
|
100 | % | ||
Bennett-Emmert-Szakovits Funeral Home, Inc.
|
100 | % | ||
|
||||
OKLAHOMA
|
||||
SCI Funeral Services, LLC (Iowa LLC) Oklahoma subsidiaries
|
||||
SCI Oklahoma Funeral Services, Inc.
|
100 | % | ||
Memorial Gardens Association
|
100 | % | ||
Rose Hill Burial Park, a Trust
|
90 | % | ||
Sunset Memorial Park Cemetery Trust
|
100 | % | ||
Memorial Park Association, a Trust Estate
|
100 | % | ||
Sunny Lane Cemetery, a Property Trust
|
100 | % | ||
Alderwoods Group, LLC (DE LLC) Oklahoma subsidiary
|
||||
Alderwoods (Oklahoma), Inc.
|
100 | % |
8
9
February 1, 2011 | ||||
Ownership | ||||
Wilson Financial Group, Inc. (DE Corp) Tennessee subsidiary
|
||||
Southern Funeral Home, Inc.
|
100 | % | ||
Amistad Corporation (DE Corp) Tennessee subsidiary
|
||||
Franklin-Strickland Funeral Home, Inc.
|
100 | % | ||
Wilson Holdings, Inc. (TX Corp) Tennessee subsidiaries
|
||||
M. J. Edwards & Sons Funeral Home, Inc.
|
100 | % | ||
M. J. Edwards-Whitehaven Funeral Chapel, Inc.
|
100 | % | ||
Alderwoods Group, LLC (DE LLC) Tennessee subsidiaries
|
||||
Alderwoods (Tennessee), LLC
|
100 | % | ||
Eagle Financial Associates, Inc.
|
100 | % | ||
|
||||
TEXAS
|
||||
SCI Funeral Services, LLC (Iowa LLC) Texas subsidiaries
|
||||
TMJ Land, Inc.
|
100 | % | ||
SCI Texas Funeral Services, Inc. (DE Corp) Texas subsidiaries
|
||||
FHC Realty, Inc.
|
100 | % | ||
WFG Liquidation Corporation
|
100 | % | ||
Pioneer Funeral Plans, Inc.
|
100 | % | ||
SCI Special, Inc. (DE Corp)
|
||||
SCI Capital Corporation (DE Corp) Texas subsidiary
|
||||
Investment Capital Corporation
|
100 | % | ||
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)- Texas subsidiaries
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) Texas subsidiaries
|
||||
SCI EOps HQ, Inc. (NY Corp)
General Partner of
|
||||
SCI Eastern Market Support Center, L.P.
|
1 | % | ||
SCI Houston Hub, Inc.-
General Partner of
|
100 | % | ||
SCI Houston Market Support Center, L.P.
|
1 | % | ||
Alderwoods Group, LLC (DE LLC) Texas subsidiaries
|
||||
DSP General Partner, Inc.
|
100 | % | ||
Dunwood Cemetery Service Company
|
80 | % | ||
Earthman Holdings, Inc.
|
100 | % | ||
Alderwoods (Texas), Inc. (CA Corp) Texas subsidiary
|
||||
Funeral Service, Inc.
|
100 | % |
10
February 1, 2011 | ||||
Ownership | ||||
Alderwoods (Georgia), Inc. (GA Corp) Texas subsidiary
|
||||
Waco Memorial Park, Inc.
|
100 | % | ||
UTAH
|
||||
SCI Funeral Services, LLC (Iowa LLC) Utah subsidiaries
|
||||
SCI Utah Funeral Services, Inc.
|
100 | % | ||
Evans & Early Mortuary, LLC
|
100 | % | ||
Wasatch Land and Improvement Company
|
100 | % | ||
|
||||
VERMONT
|
||||
SCI International, LLC (DE LLC)
|
||||
SCI Cerberus, LLC (DE LLC)
|
||||
Keystone Canada Corp. (Ontario Corp)
|
||||
Keystone Group Holdings, Inc. (DE Corp)
|
||||
Keystone America, Inc. (DE Corp) Vermont subsidiary
|
||||
Ker-Westerlund Funeral Home, Inc.
|
100 | % | ||
|
||||
VIRGINIA
|
||||
SCI Funeral Services, LLC (Iowa LLC) Virginia subsidiary
|
||||
SCI Virginia Funeral Services, Inc.
|
100 | % | ||
Memorial Guardian Plans, Inc. (DE Corp) Virginia subsidiary
|
||||
Sentinel Security Plans, Inc.
|
100 | % | ||
Alderwoods Group, LLC (DE LLC) Virginia subsidiary
|
||||
Alderwoods (Virginia), Inc.
|
52.9 | % | ||
Carothers Holding Company, LLC (NC LLC) Virginia subsidiary
|
||||
Alderwoods (Virginia), Inc.
|
0.5 | % | ||
Lineberry Group, Inc. (NC Corp) Virginia subsidiary
|
||||
Alderwoods (Virginia), Inc.
|
46.6 | % | ||
|
||||
WASHINGTON
|
||||
SCI Funeral Services, LLC (Iowa LLC) Washington subsidiary
|
||||
SCI Washington Funeral Services, Inc.
|
100 | % | ||
Alderwoods Group, LLC (DE LLC) Washington subsidiaries
|
||||
Alderwoods (Washington), Inc.
|
100 | % | ||
S & H Properties and Enterprises, Inc.
|
100 | % | ||
Vancouver Funeral Chapel, Inc.
|
100 | % | ||
Evergreen Funeral Home and Cemetery, Inc.
|
100 | % | ||
Green Service Corporation
|
100 | % | ||
|
||||
WEST VIRGINIA
|
||||
SCI Funeral Services, LLC (Iowa LLC) West Virginia subsidiaries
|
||||
SCI West Virginia Funeral Services, Inc.
|
100 | % | ||
Rosedale Cemetery Company
|
100 | % | ||
Rosedale Funeral Chapel, Inc.
|
100 | % | ||
Alderwoods Group, LLC (DE LLC) West Virginia subsidiary
|
||||
Alderwoods (West Virginia), Inc.
|
100 | % | ||
|
||||
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 Corporation (DE Corp)Wisconsin subsidiary
|
||||
Alderwoods (Wisconsin), Inc.
|
1 | % | ||
Northern Land Company, Inc.
|
100 | % |
11
12
13
/s/ R. L. Waltrip | ||||
R. L. WALTRIP | ||||
/s/ Thomas L. Ryan | ||||
THOMAS L. RYAN | ||||
/s/ Eric D. Tanzberger | ||||
ERIC D. TANZBERGER | ||||
/s/ Tammy R. Moore | ||||
TAMMY R. MOORE | ||||
/s/ Alan R. Buckwalter, III | ||||
ALAN R. BUCKWALTER, III | ||||
/s/ Anthony L. Coelho | ||||
ANTHONY L. COELHO | ||||
/s/ A. J. Foyt, Jr. | ||||
A. J. FOYT, JR. | ||||
/s/ Malcolm Gillis | ||||
MALCOLM GILLIS | ||||
/s/ Victor L. Lund | ||||
VICTOR L. LUND | ||||
/s/ John W. Mecom, Jr. | ||||
JOHN W. MECOM, JR. | ||||
/s/ Clifton H. Morris, Jr. | ||||
CLIFTON H. MORRIS, JR. | ||||
/s/ W. Blair Waltrip | ||||
W. BLAIR WALTRIP | ||||
/s/ Edward E. Williams | ||||
EDWARD E. WILLIAMS | ||||