We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Service Corp International Inc | NYSE:SCI | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 67.59 | 0 | 09:00:00 |
|
þ
|
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2016
|
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
|
|
Item 8.
|
Financial Statements and Supplementary Data.
|
|
Page
|
Financial Statements:
|
|
Report of Independent Registered Public Accounting Firm
|
|
Consolidated Statement of Operations for the years ended December 31, 2016, 2015, and 2014
|
|
Consolidated Statement of Comprehensive Income for the years ended December 31, 2016, 2015, and 2014
|
|
Consolidated Balance Sheet as of December 31, 2016 and 2015
|
|
Consolidated Statement of Cash Flows for the years ended December 31, 2016, 2015, and 2014
|
|
Consolidated Statement of Equity for the three years ended December 31, 2016, 2015, and 2014
|
|
Notes to Consolidated Financial Statements
|
|
1. Nature of Operations
|
|
2. Summary of Significant Accounting Policies
|
|
3. Preneed Funeral Activities
|
|
4. Preneed Cemetery Activities
|
|
5. Cemetery Perpetual Care Trusts
|
|
6. Deferred Preneed Receipts Held in Trust and Care Trusts’ Corpus
|
|
7. Goodwill and Intangible Assets
|
|
8. Income Taxes
|
|
9. Debt
|
|
10. Credit Risk and Fair Value of Financial Instruments
|
|
11. Commitments and Contingencies
|
|
12. Equity
|
|
13. Share-Based Compensation
|
|
14. Retirement Plans
|
|
15. Segment Reporting
|
|
16. Supplementary Information
|
|
17. Earnings Per Share
|
|
18. Acquisitions
|
|
19. Divestiture-Related Activities
|
|
20. Quarterly Financial Data (Unaudited)
|
|
Financial Statement Schedule:
|
|
II — Valuation and Qualifying Accounts
|
SERVICE CORPORATION INTERNATIONAL
CONSOLIDATED STATEMENT OF OPERATIONS
|
|||||||||||
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands, except per share amounts)
|
||||||||||
Revenue
|
$
|
3,031,137
|
|
|
$
|
2,986,041
|
|
|
$
|
2,994,011
|
|
Costs and expenses
|
(2,354,703
|
)
|
|
(2,311,452
|
)
|
|
(2,318,326
|
)
|
|||
Gross profit
|
676,434
|
|
|
674,589
|
|
|
675,685
|
|
|||
General and administrative expenses
|
(137,730
|
)
|
|
(130,813
|
)
|
|
(184,749
|
)
|
|||
(Losses) gains on divestitures and impairment charges, net
|
(26,819
|
)
|
|
6,522
|
|
|
116,613
|
|
|||
Operating income
|
511,885
|
|
|
550,298
|
|
|
607,549
|
|
|||
Interest expense
|
(162,093
|
)
|
|
(172,897
|
)
|
|
(177,571
|
)
|
|||
Losses on early extinguishment of debt, net
|
(22,503
|
)
|
|
(6,918
|
)
|
|
(29,158
|
)
|
|||
Other (expense) income, net
|
(631
|
)
|
|
(132
|
)
|
|
1,780
|
|
|||
Income from continuing operations before income taxes
|
326,658
|
|
|
370,351
|
|
|
402,600
|
|
|||
Provision for income taxes
|
(149,353
|
)
|
|
(135,027
|
)
|
|
(225,980
|
)
|
|||
Income from continuing operations
|
177,305
|
|
|
235,324
|
|
|
176,620
|
|
|||
Net (loss) income from discontinued operations, net of tax
|
—
|
|
|
(390
|
)
|
|
2,186
|
|
|||
Net income
|
177,305
|
|
|
234,934
|
|
|
178,806
|
|
|||
Net income attributable to noncontrolling interests
|
(267
|
)
|
|
(1,162
|
)
|
|
(6,337
|
)
|
|||
Net income attributable to common stockholders
|
$
|
177,038
|
|
|
$
|
233,772
|
|
|
$
|
172,469
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|||
Net income attributable to common stockholders
|
$
|
0.92
|
|
|
$
|
1.17
|
|
|
$
|
0.82
|
|
Basic weighted average number of shares
|
193,086
|
|
|
200,356
|
|
|
210,741
|
|
|||
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|||
Net income attributable to common stockholders
|
$
|
0.90
|
|
|
$
|
1.14
|
|
|
$
|
0.81
|
|
Diluted weighted average number of shares
|
196,042
|
|
|
204,450
|
|
|
214,200
|
|
|||
Dividends declared per share
|
$
|
0.51
|
|
|
$
|
0.44
|
|
|
$
|
0.34
|
|
|
|
|
|
|
|
||||||
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Net income
|
$
|
177,305
|
|
|
$
|
234,934
|
|
|
$
|
178,806
|
|
Other comprehensive income:
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
10,331
|
|
|
(53,283
|
)
|
|
(32,096
|
)
|
|||
Reclassification of foreign currency translation adjustments to discontinued operations
|
—
|
|
|
—
|
|
|
3,114
|
|
|||
Total comprehensive income
|
187,636
|
|
|
181,651
|
|
|
149,824
|
|
|||
Total comprehensive income attributable to noncontrolling interests
|
(270
|
)
|
|
(1,129
|
)
|
|
(6,382
|
)
|
|||
Total comprehensive income attributable to common stockholders
|
$
|
187,366
|
|
|
$
|
180,522
|
|
|
$
|
143,442
|
|
SERVICE CORPORATION INTERNATIONAL
CONSOLIDATED BALANCE SHEET
|
|||||||
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands, except share amounts)
|
||||||
ASSETS
|
|||||||
Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
194,986
|
|
|
$
|
134,599
|
|
Receivables, net
|
98,455
|
|
|
90,462
|
|
||
Inventories
|
26,431
|
|
|
27,835
|
|
||
Other
|
34,524
|
|
|
47,155
|
|
||
Total current assets
|
354,396
|
|
|
300,051
|
|
||
Preneed funeral receivables, net and trust investments
|
1,817,445
|
|
|
1,760,297
|
|
||
Preneed cemetery receivables, net and trust investments
|
2,487,720
|
|
|
2,318,167
|
|
||
Cemetery property
|
1,776,935
|
|
|
1,753,015
|
|
||
Property and equipment, net
|
1,827,587
|
|
|
1,846,722
|
|
||
Goodwill
|
1,799,081
|
|
|
1,796,340
|
|
||
Deferred charges and other assets
|
567,520
|
|
|
582,378
|
|
||
Cemetery perpetual care trust investments
|
1,407,465
|
|
|
1,319,427
|
|
||
Total assets
|
$
|
12,038,149
|
|
|
$
|
11,676,397
|
|
LIABILITIES & EQUITY
|
|||||||
Current liabilities:
|
|
|
|
|
|
||
Accounts payable and accrued liabilities
|
$
|
439,936
|
|
|
$
|
422,816
|
|
Current maturities of long-term debt
|
89,974
|
|
|
86,823
|
|
||
Income taxes payable
|
7,960
|
|
|
1,373
|
|
||
Total current liabilities
|
537,870
|
|
|
511,012
|
|
||
Long-term debt
|
3,196,616
|
|
|
3,037,605
|
|
||
Deferred preneed funeral revenue
|
581,280
|
|
|
557,897
|
|
||
Deferred preneed cemetery revenue
|
1,150,137
|
|
|
1,120,001
|
|
||
Deferred tax liability
|
454,638
|
|
|
470,584
|
|
||
Other liabilities
|
510,322
|
|
|
496,947
|
|
||
Deferred preneed receipts held in trust
|
3,103,796
|
|
|
2,973,386
|
|
||
Care trusts’ corpus
|
1,408,243
|
|
|
1,319,564
|
|
||
Commitments and contingencies (Note 11)
|
|
|
|
|
|
||
Equity:
|
|
|
|
||||
Common stock, $1 per share par value, 500,000,000 shares authorized, 195,403,644 and 200,859,676 shares issued, respectively, and 189,405,244 and 195,772,876 shares outstanding, respectively
|
189,405
|
|
|
195,773
|
|
||
Capital in excess of par value
|
990,203
|
|
|
1,092,106
|
|
||
Accumulated deficit
|
(103,387
|
)
|
|
(109,351
|
)
|
||
Accumulated other comprehensive income
|
16,492
|
|
|
6,164
|
|
||
Total common stockholders’ equity
|
1,092,713
|
|
|
1,184,692
|
|
||
Noncontrolling interests
|
2,534
|
|
|
4,709
|
|
||
Total equity
|
1,095,247
|
|
|
1,189,401
|
|
||
Total liabilities and equity
|
$
|
12,038,149
|
|
|
$
|
11,676,397
|
|
SERVICE CORPORATION INTERNATIONAL
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|||||||||||
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
|
(In thousands)
|
|
|
|
|||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
177,305
|
|
|
$
|
234,934
|
|
|
$
|
178,806
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|||
Loss (income) from discontinued operations, net of tax
|
—
|
|
|
390
|
|
|
(2,186
|
)
|
|||
Losses on early extinguishment of debt, net
|
22,503
|
|
|
6,918
|
|
|
29,158
|
|
|||
Premiums paid on early extinguishment of debt
|
(20,524
|
)
|
|
(6,549
|
)
|
|
(24,804
|
)
|
|||
Depreciation and amortization
|
147,233
|
|
|
141,456
|
|
|
140,002
|
|
|||
Amortization of intangible assets
|
30,956
|
|
|
31,459
|
|
|
36,640
|
|
|||
Amortization of cemetery property
|
66,745
|
|
|
62,407
|
|
|
60,439
|
|
|||
Amortization of loan costs
|
5,826
|
|
|
9,434
|
|
|
8,825
|
|
|||
Provision for doubtful accounts
|
10,776
|
|
|
6,083
|
|
|
7,376
|
|
|||
Provision for deferred income taxes
|
7,490
|
|
|
18,048
|
|
|
129,671
|
|
|||
Losses (gains) on divestitures and impairment charges, net
|
26,819
|
|
|
(6,522
|
)
|
|
(116,613
|
)
|
|||
Share-based compensation
|
14,056
|
|
|
13,843
|
|
|
13,127
|
|
|||
Excess tax benefits from share-based awards
|
(12,685
|
)
|
|
(18,123
|
)
|
|
(30,123
|
)
|
|||
Change in assets and liabilities, net of effects from acquisitions and dispositions:
|
|
|
|
|
|
|
|
|
|||
(Increase) decrease in receivables
|
(14,198
|
)
|
|
464
|
|
|
(18,644
|
)
|
|||
Decrease (increase) in other assets
|
17,855
|
|
|
2,457
|
|
|
(11,013
|
)
|
|||
Increase (decrease) in payables and other liabilities
|
47,888
|
|
|
20,567
|
|
|
(12,038
|
)
|
|||
Effect of preneed funeral production and maturities:
|
|
|
|
|
|
|
|
|
|||
Decrease in preneed funeral receivables, net and trust investments
|
17,506
|
|
|
24,918
|
|
|
30,357
|
|
|||
Increase (decrease) in deferred preneed funeral revenue
|
9,329
|
|
|
6,199
|
|
|
(23,069
|
)
|
|||
Decrease in deferred preneed receipts held in trust
|
(41,607
|
)
|
|
(52,946
|
)
|
|
(52,869
|
)
|
|||
Effect of preneed cemetery production and maturities:
|
|
|
|
|
|
|
|
|
|||
Increase in preneed cemetery receivables, net and trust investments
|
(90,900
|
)
|
|
(73,038
|
)
|
|
(43,964
|
)
|
|||
Increase in deferred preneed cemetery revenue
|
25,446
|
|
|
60,960
|
|
|
54,049
|
|
|||
Increase (decrease) in deferred preneed receipts held in trust
|
15,776
|
|
|
(11,173
|
)
|
|
(34,664
|
)
|
|||
Other
|
—
|
|
|
—
|
|
|
(108
|
)
|
|||
Net cash provided by operating activities from continuing operations
|
463,595
|
|
|
472,186
|
|
|
318,355
|
|
|||
Net cash used in operating activities from discontinued operations
|
—
|
|
|
—
|
|
|
(1,000
|
)
|
|||
Net cash provided by operating activities
|
463,595
|
|
|
472,186
|
|
|
317,355
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|||
Capital expenditures
|
(193,446
|
)
|
|
(150,986
|
)
|
|
(144,499
|
)
|
|||
Acquisitions, net of cash acquired
|
(69,146
|
)
|
|
(41,258
|
)
|
|
(15,336
|
)
|
|||
Proceeds from divestitures and sales of property and equipment
|
41,310
|
|
|
16,772
|
|
|
424,383
|
|
|||
Net withdrawals (deposits) of restricted funds and other
|
5,150
|
|
|
8,066
|
|
|
(12,225
|
)
|
|||
Net cash (used in) provided by investing activities from continuing operations
|
(216,132
|
)
|
|
(167,406
|
)
|
|
252,323
|
|
|||
Net cash provided by investing activities from discontinued operations
|
—
|
|
|
987
|
|
|
4,963
|
|
|||
Net cash (used in) provided by investing activities
|
(216,132
|
)
|
|
(166,419
|
)
|
|
257,286
|
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|||
Proceeds from issuance of long-term debt
|
1,060,000
|
|
|
446,250
|
|
|
755,000
|
|
|||
Debt issuance costs
|
(5,232
|
)
|
|
(6,025
|
)
|
|
(10,500
|
)
|
|||
Payments of debt
|
(36,414
|
)
|
|
(160,220
|
)
|
|
(230,561
|
)
|
|||
Early extinguishment of debt
|
(875,110
|
)
|
|
(197,377
|
)
|
|
(762,764
|
)
|
|||
Principal payments on capital leases
|
(33,119
|
)
|
|
(28,601
|
)
|
|
(29,380
|
)
|
|||
Proceeds from exercise of stock options
|
17,662
|
|
|
31,809
|
|
|
32,376
|
|
|||
Excess tax benefits from share-based awards
|
12,685
|
|
|
18,123
|
|
|
30,123
|
|
|||
Purchase of Company common stock
|
(227,928
|
)
|
|
(345,261
|
)
|
|
(242,874
|
)
|
|||
Payments of dividends
|
(98,418
|
)
|
|
(87,570
|
)
|
|
(71,517
|
)
|
|||
Purchase of noncontrolling interest
|
(1,961
|
)
|
|
(2,075
|
)
|
|
(15,000
|
)
|
|||
Bank overdrafts and other
|
(1,095
|
)
|
|
(7,531
|
)
|
|
7,130
|
|
|||
Net cash used in financing activities
|
(188,930
|
)
|
|
(338,478
|
)
|
|
(537,967
|
)
|
SERVICE CORPORATION INTERNATIONAL
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|||||||||||
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
|
(In thousands)
|
|
|
|
|||||
Net change in cash of discontinued operations
|
—
|
|
|
—
|
|
|
1,361
|
|
|||
Effect of foreign currency
|
1,854
|
|
|
(10,025
|
)
|
|
(2,284
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
60,387
|
|
|
(42,736
|
)
|
|
35,751
|
|
|||
Cash and cash equivalents at beginning of period
|
134,599
|
|
|
177,335
|
|
|
141,584
|
|
|||
Cash and cash equivalents at end of period
|
$
|
194,986
|
|
|
$
|
134,599
|
|
|
$
|
177,335
|
|
|
Common
Stock
|
|
Treasury
Stock,
Par Value
|
|
Capital in
Excess of
Par Value
|
|
Accumulated
Deficit
|
|
Accumulated
Other
Comprehensive
Income
|
|
Noncontrolling
Interest
|
|
Total
|
||||||||||||||
|
(In thousands, except per share amounts)
|
||||||||||||||||||||||||||
Balance at December 31, 2013
|
$
|
212,327
|
|
|
$
|
(10
|
)
|
|
$
|
1,259,348
|
|
|
$
|
(90,026
|
)
|
|
$
|
88,441
|
|
|
$
|
10,148
|
|
|
$
|
1,480,228
|
|
Comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
172,469
|
|
|
(29,027
|
)
|
|
6,382
|
|
|
149,824
|
|
|||||||
Dividends declared on common stock ($.34 per share)
|
—
|
|
|
—
|
|
|
(71,517
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(71,517
|
)
|
|||||||
Stock option exercises
|
3,642
|
|
|
—
|
|
|
29,495
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,137
|
|
|||||||
Restricted stock award, net of forfeitures and other
|
352
|
|
|
—
|
|
|
(352
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Employee share-based compensation earned
|
—
|
|
|
—
|
|
|
13,127
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,127
|
|
|||||||
Purchase of Company common stock
|
—
|
|
|
(11,537
|
)
|
|
(67,796
|
)
|
|
(164,302
|
)
|
|
—
|
|
|
—
|
|
|
(243,635
|
)
|
|||||||
Tax benefits of share-based awards
|
—
|
|
|
—
|
|
|
30,123
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,123
|
|
|||||||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
(7,441
|
)
|
|
—
|
|
|
—
|
|
|
(7,559
|
)
|
|
(15,000
|
)
|
|||||||
Noncontrolling interest payments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(319
|
)
|
|
(319
|
)
|
|||||||
Retirement of treasury shares
|
(10,956
|
)
|
|
10,956
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other
|
93
|
|
|
—
|
|
|
1,317
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,410
|
|
|||||||
Balance at December 31, 2014
|
$
|
205,458
|
|
|
$
|
(591
|
)
|
|
$
|
1,186,304
|
|
|
$
|
(81,859
|
)
|
|
$
|
59,414
|
|
|
$
|
8,652
|
|
|
$
|
1,377,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
233,772
|
|
|
(53,250
|
)
|
|
1,129
|
|
|
181,651
|
|
|||||||
Dividends declared on common stock ($.44 per share)
|
—
|
|
|
—
|
|
|
(87,570
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(87,570
|
)
|
|||||||
Stock option exercises
|
3,054
|
|
|
—
|
|
|
28,877
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,931
|
|
|||||||
Restricted stock awards, net of forfeitures
|
254
|
|
|
(9
|
)
|
|
(245
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Employee share-based compensation earned
|
—
|
|
|
—
|
|
|
13,843
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,843
|
|
|||||||
Purchase of Company common stock
|
—
|
|
|
(12,455
|
)
|
|
(71,664
|
)
|
|
(261,264
|
)
|
|
—
|
|
|
—
|
|
|
(345,383
|
)
|
|||||||
Tax benefits related to share-based awards
|
—
|
|
|
—
|
|
|
18,123
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,123
|
|
|||||||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
2,775
|
|
|
—
|
|
|
—
|
|
|
(4,850
|
)
|
|
(2,075
|
)
|
|||||||
Noncontrolling interest payments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(222
|
)
|
|
(222
|
)
|
|||||||
Retirement of treasury shares
|
(7,969
|
)
|
|
7,969
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other
|
62
|
|
|
—
|
|
|
1,663
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,725
|
|
|||||||
Balance at December 31, 2015
|
$
|
200,859
|
|
|
$
|
(5,086
|
)
|
|
$
|
1,092,106
|
|
|
$
|
(109,351
|
)
|
|
$
|
6,164
|
|
|
$
|
4,709
|
|
|
$
|
1,189,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
177,038
|
|
|
10,328
|
|
|
270
|
|
|
187,636
|
|
|||||||
Dividends declared on common stock ($.51 per share)
|
—
|
|
|
—
|
|
|
(98,418
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(98,418
|
)
|
|||||||
Stock option exercises
|
2,108
|
|
|
—
|
|
|
15,554
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,662
|
|
|||||||
Restricted stock awards, net of forfeitures
|
241
|
|
|
(1
|
)
|
|
(240
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Employee share-based compensation earned
|
—
|
|
|
—
|
|
|
14,056
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,056
|
|
|||||||
Purchase of Company common stock
|
—
|
|
|
(8,812
|
)
|
|
(48,042
|
)
|
|
(171,074
|
)
|
|
—
|
|
|
—
|
|
|
(227,928
|
)
|
|||||||
Tax benefits related to share-based awards
|
—
|
|
|
—
|
|
|
12,685
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,685
|
|
|||||||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
364
|
|
|
—
|
|
|
—
|
|
|
(2,325
|
)
|
|
(1,961
|
)
|
|||||||
Noncontrolling interest payments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(120
|
)
|
|
(120
|
)
|
|||||||
Retirement of treasury shares
|
(7,901
|
)
|
|
7,901
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other
|
96
|
|
|
—
|
|
|
2,138
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,234
|
|
|||||||
Balance at December 31, 2016
|
$
|
195,403
|
|
|
$
|
(5,998
|
)
|
|
$
|
990,203
|
|
|
$
|
(103,387
|
)
|
|
$
|
16,492
|
|
|
$
|
2,534
|
|
|
$
|
1,095,247
|
|
1.
|
Nature of Operations
|
2.
|
Summary of Significant Accounting Policies
|
•
|
Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets;
|
•
|
Level 2 — inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and
|
•
|
Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value measurement.
|
3.
|
Preneed Funeral Activities
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
|
(In thousands)
|
|
|
||||||
Deposits
|
$
|
121,668
|
|
|
$
|
121,109
|
|
|
$
|
102,553
|
|
Withdrawals
|
$
|
157,549
|
|
|
$
|
160,135
|
|
|
$
|
131,352
|
|
Purchases of available-for-sale securities
(1)
|
$
|
377,813
|
|
|
$
|
453,092
|
|
|
$
|
1,238,257
|
|
Sales of available-for-sale securities
(1)
|
$
|
387,959
|
|
|
$
|
458,236
|
|
|
$
|
1,318,512
|
|
(1)
|
The higher level of activity in 2014 was the result of changing the legal structure of the trust investments.
|
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Trust investments, at market
|
$
|
1,152,752
|
|
|
$
|
1,109,394
|
|
Cash and cash equivalents
|
122,517
|
|
|
134,642
|
|
||
Assets associated with businesses held for sale
|
—
|
|
|
(39
|
)
|
||
Insurance-backed fixed income securities
|
271,248
|
|
|
271,116
|
|
||
Trust investments
|
1,546,517
|
|
|
1,515,113
|
|
||
Receivables from customers
|
312,556
|
|
|
290,689
|
|
||
Unearned finance charge
|
(12,562
|
)
|
|
(11,235
|
)
|
||
|
1,846,511
|
|
|
1,794,567
|
|
||
Allowance for cancellation
|
(29,066
|
)
|
|
(34,270
|
)
|
||
Preneed funeral receivables, net and trust investments
|
$
|
1,817,445
|
|
|
$
|
1,760,297
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
|
(In thousands)
|
|
|
||||||
Beginning balance — Preneed funeral receivables and trust investments
|
$
|
1,760,297
|
|
|
$
|
1,843,023
|
|
|
$
|
1,870,243
|
|
Net preneed contract sales
|
296,896
|
|
|
283,927
|
|
|
247,994
|
|
|||
Cash receipts from customers, net of refunds
|
(246,436
|
)
|
|
(234,413
|
)
|
|
(211,830
|
)
|
|||
Deposits to trust
|
121,668
|
|
|
121,109
|
|
|
102,553
|
|
|||
Acquisitions (divestitures) of businesses, net
|
3,560
|
|
|
1,400
|
|
|
(19,203
|
)
|
|||
Net undistributed investment earnings (losses)
(1)
|
65,954
|
|
|
(38,510
|
)
|
|
22,480
|
|
|||
Maturities and distributed earnings
|
(193,604
|
)
|
|
(200,635
|
)
|
|
(162,059
|
)
|
|||
Change in cancellation allowance
|
5,295
|
|
|
2,787
|
|
|
7,644
|
|
|||
Effect of foreign currency and other
|
3,815
|
|
|
(18,391
|
)
|
|
(14,799
|
)
|
|||
Ending balance — Preneed funeral receivables and trust investments
|
$
|
1,817,445
|
|
|
$
|
1,760,297
|
|
|
$
|
1,843,023
|
|
(1)
|
Includes both realized and unrealized investment earnings.
|
|
|
December 31, 2016
|
||||||||||||||
|
Fair Value Hierarchy Level
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury
|
2
|
$
|
75,245
|
|
|
$
|
317
|
|
|
$
|
(557
|
)
|
|
$
|
75,005
|
|
Canadian government
|
2
|
55,752
|
|
|
272
|
|
|
(42
|
)
|
|
55,982
|
|
||||
Corporate
|
2
|
12,702
|
|
|
177
|
|
|
(92
|
)
|
|
12,787
|
|
||||
Residential mortgage-backed
|
2
|
29
|
|
|
1
|
|
|
—
|
|
|
30
|
|
||||
Asset-backed
|
2
|
58
|
|
|
—
|
|
|
(3
|
)
|
|
55
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Preferred stock
|
2
|
1,428
|
|
|
81
|
|
|
(39
|
)
|
|
1,470
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States
|
1
|
334,854
|
|
|
49,785
|
|
|
(11,525
|
)
|
|
373,114
|
|
||||
Canada
|
1
|
11,853
|
|
|
2,592
|
|
|
(263
|
)
|
|
14,182
|
|
||||
Other international
|
1
|
25,761
|
|
|
1,824
|
|
|
(3,167
|
)
|
|
24,418
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity
|
1
|
313,132
|
|
|
7,780
|
|
|
(26,842
|
)
|
|
294,070
|
|
||||
Fixed income
|
1
|
92,760
|
|
|
1,344
|
|
|
(7,368
|
)
|
|
86,736
|
|
||||
Other
|
3
|
4,079
|
|
|
1,214
|
|
|
(17
|
)
|
|
5,276
|
|
||||
Trust investments, at fair value
|
|
927,653
|
|
|
65,387
|
|
|
(49,915
|
)
|
|
943,125
|
|
||||
Fixed income commingled funds
|
|
168,959
|
|
|
3,177
|
|
|
(1,167
|
)
|
|
170,969
|
|
||||
Private equity
|
|
40,892
|
|
|
2,956
|
|
|
(5,190
|
)
|
|
38,658
|
|
||||
Trust investments, at net asset value
|
|
209,851
|
|
|
6,133
|
|
|
(6,357
|
)
|
|
209,627
|
|
||||
Trust investments, at market
|
|
$
|
1,137,504
|
|
|
$
|
71,520
|
|
|
$
|
(56,272
|
)
|
|
$
|
1,152,752
|
|
|
|
December 31, 2015
|
||||||||||||||
|
Fair Value Hierarchy Level
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury
|
2
|
$
|
64,140
|
|
|
$
|
89
|
|
|
$
|
(1,270
|
)
|
|
$
|
62,959
|
|
Canadian government
|
2
|
56,975
|
|
|
323
|
|
|
(55
|
)
|
|
57,243
|
|
||||
Corporate
|
2
|
18,983
|
|
|
235
|
|
|
(284
|
)
|
|
18,934
|
|
||||
Residential mortgage-backed
|
2
|
1,299
|
|
|
29
|
|
|
(22
|
)
|
|
1,306
|
|
||||
Asset-backed
|
2
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Preferred stock
|
2
|
1,951
|
|
|
41
|
|
|
(158
|
)
|
|
1,834
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States
|
1
|
344,544
|
|
|
30,885
|
|
|
(19,149
|
)
|
|
356,280
|
|
||||
Canada
|
1
|
11,882
|
|
|
2,651
|
|
|
(1,077
|
)
|
|
13,456
|
|
||||
Other international
|
1
|
32,193
|
|
|
2,636
|
|
|
(3,907
|
)
|
|
30,922
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity
|
1
|
324,231
|
|
|
1,263
|
|
|
(43,975
|
)
|
|
281,519
|
|
||||
Fixed income
|
1
|
155,893
|
|
|
154
|
|
|
(13,092
|
)
|
|
142,955
|
|
||||
Other
|
3
|
3,687
|
|
|
1,069
|
|
|
—
|
|
|
4,756
|
|
||||
Trust investments, at fair value
|
|
1,015,783
|
|
|
39,375
|
|
|
(82,989
|
)
|
|
972,169
|
|
||||
Fixed income commingled funds
|
|
102,063
|
|
|
228
|
|
|
(1,103
|
)
|
|
101,188
|
|
||||
Private equity
|
|
38,724
|
|
|
3,780
|
|
|
(6,467
|
)
|
|
36,037
|
|
||||
Trust investments, at net asset value
|
|
140,787
|
|
|
4,008
|
|
|
(7,570
|
)
|
|
137,225
|
|
||||
Trust investments, at market
|
|
$
|
1,156,570
|
|
|
$
|
43,383
|
|
|
$
|
(90,559
|
)
|
|
$
|
1,109,394
|
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
(In thousands)
|
||||||||||
Fair value, beginning balance at January 1
|
|
$
|
4,756
|
|
|
$
|
4,891
|
|
|
$
|
801
|
|
Net unrealized gains (losses) included in
Accumulated other comprehensive income
(1)
|
|
478
|
|
|
(167
|
)
|
|
876
|
|
|||
Purchases
|
|
89
|
|
|
32
|
|
|
3,214
|
|
|||
Sales
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|||
Fair value, ending balance at December 31
|
|
$
|
5,276
|
|
|
$
|
4,756
|
|
|
$
|
4,891
|
|
(1)
|
All unrealized gains recognized in
Accumulated other comprehensive income
for our funeral merchandise and service trust investments are attributable to our preneed customers and are offset by a corresponding reclassification in
Accumulated other comprehensive income
to
Deferred preneed receipts held in trust
. See Note 6 for further information related to our
Deferred preneed receipts held in trust
.
|
|
Fair Value
|
||
|
(In thousands)
|
||
Due in one year or less
|
$
|
76,744
|
|
Due in one to five years
|
27,298
|
|
|
Due in five to ten years
|
31,374
|
|
|
Thereafter
|
8,443
|
|
|
|
$
|
143,859
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Fair
Market
Value
|
|
Unrealized
Losses
|
|
Fair
Market
Value
|
|
Unrealized
Losses
|
|
Fair
Market
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury
|
$
|
25,996
|
|
|
$
|
(557
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25,996
|
|
|
$
|
(557
|
)
|
Canadian government
|
2,847
|
|
|
(30
|
)
|
|
191
|
|
|
(12
|
)
|
|
3,038
|
|
|
(42
|
)
|
||||||
Corporate
|
1,710
|
|
|
(15
|
)
|
|
3,560
|
|
|
(77
|
)
|
|
5,270
|
|
|
(92
|
)
|
||||||
Asset-backed
|
—
|
|
|
—
|
|
|
55
|
|
|
(3
|
)
|
|
55
|
|
|
(3
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Preferred stock
|
125
|
|
|
(17
|
)
|
|
98
|
|
|
(22
|
)
|
|
223
|
|
|
(39
|
)
|
||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
87,059
|
|
|
(8,149
|
)
|
|
14,939
|
|
|
(3,376
|
)
|
|
101,998
|
|
|
(11,525
|
)
|
||||||
Canada
|
2,832
|
|
|
(254
|
)
|
|
482
|
|
|
(9
|
)
|
|
3,314
|
|
|
(263
|
)
|
||||||
Other international
|
5,390
|
|
|
(1,301
|
)
|
|
7,368
|
|
|
(1,866
|
)
|
|
12,758
|
|
|
(3,167
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity
|
108,109
|
|
|
(5,080
|
)
|
|
127,273
|
|
|
(21,762
|
)
|
|
235,382
|
|
|
(26,842
|
)
|
||||||
Fixed income
|
34,120
|
|
|
(817
|
)
|
|
31,654
|
|
|
(6,551
|
)
|
|
65,774
|
|
|
(7,368
|
)
|
||||||
Other
|
26
|
|
|
(2
|
)
|
|
1,160
|
|
|
(15
|
)
|
|
1,186
|
|
|
(17
|
)
|
||||||
Trust investments, at fair value
|
268,214
|
|
|
(16,222
|
)
|
|
186,780
|
|
|
(33,693
|
)
|
|
454,994
|
|
|
(49,915
|
)
|
||||||
Fixed income commingled funds
|
75,041
|
|
|
(687
|
)
|
|
17,656
|
|
|
(480
|
)
|
|
92,697
|
|
|
(1,167
|
)
|
||||||
Private equity
|
693
|
|
|
(481
|
)
|
|
22,812
|
|
|
(4,709
|
)
|
|
23,505
|
|
|
(5,190
|
)
|
||||||
Trust investments, at net asset value
|
75,734
|
|
|
(1,168
|
)
|
|
40,468
|
|
|
(5,189
|
)
|
|
116,202
|
|
|
(6,357
|
)
|
||||||
Total temporarily impaired securities
|
$
|
343,948
|
|
|
$
|
(17,390
|
)
|
|
$
|
227,248
|
|
|
$
|
(38,882
|
)
|
|
$
|
571,196
|
|
|
$
|
(56,272
|
)
|
|
December 31, 2015
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Fair
Market
Value
|
|
Unrealized
Losses
|
|
Fair
Market
Value
|
|
Unrealized
Losses
|
|
Fair
Market
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury
|
$
|
36,113
|
|
|
$
|
(1,268
|
)
|
|
$
|
141
|
|
|
$
|
(2
|
)
|
|
$
|
36,254
|
|
|
$
|
(1,270
|
)
|
Canadian government
|
209
|
|
|
(7
|
)
|
|
971
|
|
|
(48
|
)
|
|
1,180
|
|
|
(55
|
)
|
||||||
Corporate
|
4,618
|
|
|
(156
|
)
|
|
3,880
|
|
|
(128
|
)
|
|
8,498
|
|
|
(284
|
)
|
||||||
Residential mortgage-backed
|
378
|
|
|
(6
|
)
|
|
132
|
|
|
(16
|
)
|
|
510
|
|
|
(22
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Preferred stock
|
449
|
|
|
(60
|
)
|
|
42
|
|
|
(98
|
)
|
|
491
|
|
|
(158
|
)
|
||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
128,925
|
|
|
(16,448
|
)
|
|
14,537
|
|
|
(2,701
|
)
|
|
143,462
|
|
|
(19,149
|
)
|
||||||
Canada
|
1,941
|
|
|
(355
|
)
|
|
1,051
|
|
|
(722
|
)
|
|
2,992
|
|
|
(1,077
|
)
|
||||||
Other international
|
9,473
|
|
|
(1,638
|
)
|
|
6,154
|
|
|
(2,269
|
)
|
|
15,627
|
|
|
(3,907
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity
|
186,016
|
|
|
(23,385
|
)
|
|
79,892
|
|
|
(20,590
|
)
|
|
265,908
|
|
|
(43,975
|
)
|
||||||
Fixed income
|
109,154
|
|
|
(5,052
|
)
|
|
27,061
|
|
|
(8,040
|
)
|
|
136,215
|
|
|
(13,092
|
)
|
||||||
Trust investments, at fair value
|
477,276
|
|
|
(48,375
|
)
|
|
133,861
|
|
|
(34,614
|
)
|
|
611,137
|
|
|
(82,989
|
)
|
||||||
Fixed income commingled funds
|
70,964
|
|
|
(457
|
)
|
|
15,243
|
|
|
(646
|
)
|
|
86,207
|
|
|
(1,103
|
)
|
||||||
Private equity
|
—
|
|
|
—
|
|
|
18,714
|
|
|
(6,467
|
)
|
|
18,714
|
|
|
(6,467
|
)
|
||||||
Trust investments, at net asset value
|
70,964
|
|
|
(457
|
)
|
|
33,957
|
|
|
(7,113
|
)
|
|
104,921
|
|
|
(7,570
|
)
|
||||||
Total temporarily impaired securities
|
$
|
548,240
|
|
|
$
|
(48,832
|
)
|
|
$
|
167,818
|
|
|
$
|
(41,727
|
)
|
|
$
|
716,058
|
|
|
$
|
(90,559
|
)
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Beginning balance — Deferred preneed funeral revenue
|
$
|
557,897
|
|
|
$
|
540,164
|
|
|
$
|
551,948
|
|
Net preneed contract sales
|
251,134
|
|
|
232,628
|
|
|
198,195
|
|
|||
Acquisitions (divestitures) of businesses, net
|
2,170
|
|
|
(2,895
|
)
|
|
(21,639
|
)
|
|||
Net investment earnings (losses)
(1)
|
66,656
|
|
|
(37,208
|
)
|
|
24,256
|
|
|||
Recognized deferred preneed revenue
|
(277,248
|
)
|
|
(276,359
|
)
|
|
(258,534
|
)
|
|||
Change in cancellation allowance
|
8,411
|
|
|
11,675
|
|
|
21,272
|
|
|||
Change in deferred preneed receipts held in trust
|
(28,506
|
)
|
|
90,351
|
|
|
26,131
|
|
|||
Effect of foreign currency and other
|
766
|
|
|
(459
|
)
|
|
(1,465
|
)
|
|||
Ending balance — Deferred preneed funeral revenue
|
$
|
581,280
|
|
|
$
|
557,897
|
|
|
$
|
540,164
|
|
(1)
|
Includes both realized and unrealized investment earnings.
|
4.
|
Preneed Cemetery Activities
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
|
(In thousands)
|
|
|
||||||
Deposits
|
$
|
158,114
|
|
|
$
|
153,252
|
|
|
$
|
129,581
|
|
Withdrawals
|
$
|
144,308
|
|
|
$
|
163,732
|
|
|
$
|
150,064
|
|
Purchases of available-for-sale securities
(1)
|
$
|
656,452
|
|
|
$
|
625,648
|
|
|
$
|
1,786,800
|
|
Sales of available-for-sale securities
(1)
|
$
|
631,440
|
|
|
$
|
628,484
|
|
|
$
|
1,842,417
|
|
(1)
|
The higher level of activity in 2014 was the result of changing the legal structure of the trust investments.
|
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Trust investments, at market
|
$
|
1,435,083
|
|
|
$
|
1,343,916
|
|
Cash and cash equivalents
|
123,146
|
|
|
118,583
|
|
||
Trust investments
|
1,558,229
|
|
|
1,462,499
|
|
||
Receivables from customers
|
1,038,592
|
|
|
958,503
|
|
||
Unearned finance charges
|
(33,427
|
)
|
|
(31,332
|
)
|
||
|
2,563,394
|
|
|
2,389,670
|
|
||
Allowance for cancellation
|
(75,674
|
)
|
|
(71,503
|
)
|
||
Preneed cemetery receivables, net and trust investments
|
$
|
2,487,720
|
|
|
$
|
2,318,167
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
|
(In thousands)
|
|
|
||||||
Beginning balance — Preneed cemetery receivables and trust investments
|
$
|
2,318,167
|
|
|
$
|
2,306,669
|
|
|
$
|
2,292,348
|
|
Net preneed contract sales
|
862,298
|
|
|
799,497
|
|
|
688,336
|
|
|||
Cash receipts from customers, net of refunds
|
(784,267
|
)
|
|
(716,686
|
)
|
|
(615,489
|
)
|
|||
Deposits to trust
|
158,114
|
|
|
153,252
|
|
|
129,581
|
|
|||
(Divestitures) acquisitions of businesses, net
|
(2,083
|
)
|
|
4,404
|
|
|
(10,898
|
)
|
|||
Net undistributed investment earnings (losses)
(1)
|
79,557
|
|
|
(42,189
|
)
|
|
(18,038
|
)
|
|||
Maturities, deliveries, and associated earnings
|
(144,308
|
)
|
|
(163,732
|
)
|
|
(150,064
|
)
|
|||
Change in cancellation allowance
|
(1,966
|
)
|
|
(2,046
|
)
|
|
843
|
|
|||
Effect of foreign currency and other
|
2,208
|
|
|
(21,002
|
)
|
|
(9,950
|
)
|
|||
Ending balance — Preneed cemetery receivables and trust investments
|
$
|
2,487,720
|
|
|
$
|
2,318,167
|
|
|
$
|
2,306,669
|
|
(1)
|
Includes both realized and unrealized investment earnings.
|
|
|
December 31, 2016
|
||||||||||||||
|
Fair Value Hierarchy Level
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury
|
2
|
$
|
70,070
|
|
|
$
|
567
|
|
|
$
|
(281
|
)
|
|
$
|
70,356
|
|
Canadian government
|
2
|
9,109
|
|
|
49
|
|
|
(66
|
)
|
|
9,092
|
|
||||
Corporate
|
2
|
1,596
|
|
|
18
|
|
|
(34
|
)
|
|
1,580
|
|
||||
Asset-backed
|
2
|
170
|
|
|
13
|
|
|
—
|
|
|
183
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States
|
1
|
539,445
|
|
|
72,682
|
|
|
(21,680
|
)
|
|
590,447
|
|
||||
Canada
|
1
|
9,027
|
|
|
4,807
|
|
|
(84
|
)
|
|
13,750
|
|
||||
Other international
|
1
|
42,870
|
|
|
3,023
|
|
|
(5,229
|
)
|
|
40,664
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity
|
1
|
356,079
|
|
|
7,812
|
|
|
(29,603
|
)
|
|
334,288
|
|
||||
Fixed income
|
1
|
94,383
|
|
|
1,535
|
|
|
(9,854
|
)
|
|
86,064
|
|
||||
Trust investments, at fair value
|
|
1,122,749
|
|
|
90,506
|
|
|
(66,831
|
)
|
|
1,146,424
|
|
||||
Fixed income commingled funds
|
|
245,813
|
|
|
5,347
|
|
|
(1,681
|
)
|
|
249,479
|
|
||||
Private equity
|
|
37,881
|
|
|
4,616
|
|
|
(3,317
|
)
|
|
39,180
|
|
||||
Trust investments, at net asset value
|
|
283,694
|
|
|
9,963
|
|
|
(4,998
|
)
|
|
288,659
|
|
||||
Trust investments, at market
|
|
$
|
1,406,443
|
|
|
$
|
100,469
|
|
|
$
|
(71,829
|
)
|
|
$
|
1,435,083
|
|
|
|
December 31, 2015
|
||||||||||||||
|
Fair Value Hierarchy Level
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury
|
2
|
$
|
69,727
|
|
|
$
|
25
|
|
|
$
|
(1,437
|
)
|
|
$
|
68,315
|
|
Canadian government
|
2
|
9,725
|
|
|
183
|
|
|
(99
|
)
|
|
9,809
|
|
||||
Corporate
|
2
|
5,115
|
|
|
26
|
|
|
(118
|
)
|
|
5,023
|
|
||||
Residential mortgage-backed
|
2
|
129
|
|
|
3
|
|
|
(3
|
)
|
|
129
|
|
||||
Asset-backed
|
2
|
170
|
|
|
15
|
|
|
—
|
|
|
185
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States
|
1
|
531,885
|
|
|
44,181
|
|
|
(32,037
|
)
|
|
544,029
|
|
||||
Canada
|
1
|
8,992
|
|
|
3,858
|
|
|
(891
|
)
|
|
11,959
|
|
||||
Other international
|
1
|
50,041
|
|
|
4,207
|
|
|
(5,799
|
)
|
|
48,449
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity
|
1
|
356,712
|
|
|
1,620
|
|
|
(49,642
|
)
|
|
308,690
|
|
||||
Fixed income
|
1
|
203,932
|
|
|
92
|
|
|
(18,527
|
)
|
|
185,497
|
|
||||
Other
|
3
|
1,382
|
|
|
122
|
|
|
—
|
|
|
1,504
|
|
||||
Trust investments, at fair value
|
|
1,237,810
|
|
|
54,332
|
|
|
(108,553
|
)
|
|
1,183,589
|
|
||||
Fixed income commingled funds
|
|
124,103
|
|
|
—
|
|
|
(639
|
)
|
|
123,464
|
|
||||
Private equity
|
|
35,411
|
|
|
5,954
|
|
|
(4,502
|
)
|
|
36,863
|
|
||||
Trust investments, at net asset value
|
|
159,514
|
|
|
5,954
|
|
|
(5,141
|
)
|
|
160,327
|
|
||||
Trust investments, at market
|
|
$
|
1,397,324
|
|
|
$
|
60,286
|
|
|
$
|
(113,694
|
)
|
|
$
|
1,343,916
|
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
(In thousands)
|
||||||||||
Fair value, beginning balance at January 1
|
|
$
|
1,504
|
|
|
$
|
203
|
|
|
$
|
—
|
|
Net unrealized (losses) gains included in
Accumulated other comprehensive income
(1)
|
|
—
|
|
|
(27
|
)
|
|
7
|
|
|||
Net realized losses included in
Other (expense) income, net
(2)
|
|
(212
|
)
|
|
—
|
|
|
—
|
|
|||
Purchases
|
|
—
|
|
|
1,328
|
|
|
196
|
|
|||
Sales
|
|
(1,292
|
)
|
|
—
|
|
|
—
|
|
|||
Fair value, ending balance at December 31
|
|
$
|
—
|
|
|
$
|
1,504
|
|
|
$
|
203
|
|
(1)
|
All unrealized gains recognized in
Accumulated other comprehensive income
for our cemetery merchandise and service trust investments are attributable to our preneed customers and are offset by a corresponding reclassification in
Accumulated other comprehensive income
to
Deferred preneed receipts held in trust
. See Note 6 for further information related to our
Deferred preneed receipts held in trust
.
|
(2)
|
All losses recognized in
Other (expense) 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 (expense) income, net
to
Deferred preneed receipts held in trust
. See Note 6 for further information related to our
Deferred preneed receipts held in trust
.
|
|
Fair Value
|
||
|
(In thousands)
|
||
Due in one year or less
|
$
|
7,154
|
|
Due in one to five years
|
26,237
|
|
|
Due in five to ten years
|
34,244
|
|
|
Thereafter
|
13,576
|
|
|
|
$
|
81,211
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury
|
$
|
15,413
|
|
|
$
|
(281
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,413
|
|
|
$
|
(281
|
)
|
Canadian government
|
—
|
|
|
—
|
|
|
1,192
|
|
|
(66
|
)
|
|
1,192
|
|
|
(66
|
)
|
||||||
Corporate
|
—
|
|
|
—
|
|
|
736
|
|
|
(34
|
)
|
|
736
|
|
|
(34
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
149,530
|
|
|
(13,680
|
)
|
|
23,010
|
|
|
(8,000
|
)
|
|
172,540
|
|
|
(21,680
|
)
|
||||||
Canada
|
408
|
|
|
(82
|
)
|
|
38
|
|
|
(2
|
)
|
|
446
|
|
|
(84
|
)
|
||||||
Other international
|
9,707
|
|
|
(2,330
|
)
|
|
11,442
|
|
|
(2,899
|
)
|
|
21,149
|
|
|
(5,229
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity
|
125,728
|
|
|
(4,728
|
)
|
|
146,332
|
|
|
(24,875
|
)
|
|
272,060
|
|
|
(29,603
|
)
|
||||||
Fixed income
|
26,566
|
|
|
(446
|
)
|
|
45,337
|
|
|
(9,408
|
)
|
|
71,903
|
|
|
(9,854
|
)
|
||||||
Trust investments, at fair value
|
327,352
|
|
|
(21,547
|
)
|
|
228,087
|
|
|
(45,284
|
)
|
|
555,439
|
|
|
(66,831
|
)
|
||||||
Fixed income commingled funds
|
133,164
|
|
|
(1,681
|
)
|
|
—
|
|
|
—
|
|
|
133,164
|
|
|
(1,681
|
)
|
||||||
Private equity
|
558
|
|
|
(1
|
)
|
|
16,769
|
|
|
(3,316
|
)
|
|
17,327
|
|
|
(3,317
|
)
|
||||||
Trust investments, at net asset value
|
133,722
|
|
|
(1,682
|
)
|
|
16,769
|
|
|
(3,316
|
)
|
|
150,491
|
|
|
(4,998
|
)
|
||||||
Total temporarily impaired securities
|
$
|
461,074
|
|
|
$
|
(23,229
|
)
|
|
$
|
244,856
|
|
|
$
|
(48,600
|
)
|
|
$
|
705,930
|
|
|
$
|
(71,829
|
)
|
|
December 31, 2015
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury
|
$
|
52,509
|
|
|
$
|
(1,435
|
)
|
|
$
|
21
|
|
|
$
|
(2
|
)
|
|
$
|
52,530
|
|
|
$
|
(1,437
|
)
|
Canadian government
|
1,190
|
|
|
(34
|
)
|
|
841
|
|
|
(65
|
)
|
|
2,031
|
|
|
(99
|
)
|
||||||
Corporate
|
1,764
|
|
|
(22
|
)
|
|
2,347
|
|
|
(96
|
)
|
|
4,111
|
|
|
(118
|
)
|
||||||
Residential mortgage-backed
|
42
|
|
|
(1
|
)
|
|
18
|
|
|
(2
|
)
|
|
60
|
|
|
(3
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
198,755
|
|
|
(26,038
|
)
|
|
21,355
|
|
|
(5,999
|
)
|
|
220,110
|
|
|
(32,037
|
)
|
||||||
Canada
|
473
|
|
|
(6
|
)
|
|
1,430
|
|
|
(885
|
)
|
|
1,903
|
|
|
(891
|
)
|
||||||
Other international
|
15,560
|
|
|
(2,507
|
)
|
|
9,412
|
|
|
(3,292
|
)
|
|
24,972
|
|
|
(5,799
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity
|
207,253
|
|
|
(25,991
|
)
|
|
86,720
|
|
|
(23,651
|
)
|
|
293,973
|
|
|
(49,642
|
)
|
||||||
Fixed income
|
139,684
|
|
|
(6,323
|
)
|
|
44,550
|
|
|
(12,204
|
)
|
|
184,234
|
|
|
(18,527
|
)
|
||||||
Trust investments, at fair value
|
617,230
|
|
|
(62,357
|
)
|
|
166,694
|
|
|
(46,196
|
)
|
|
783,924
|
|
|
(108,553
|
)
|
||||||
Fixed income commingled funds
|
123,464
|
|
|
(639
|
)
|
|
—
|
|
|
—
|
|
|
123,464
|
|
|
(639
|
)
|
||||||
Private equity
|
—
|
|
|
—
|
|
|
9,526
|
|
|
(4,502
|
)
|
|
9,526
|
|
|
(4,502
|
)
|
||||||
Trust investments, at net asset value
|
123,464
|
|
|
(639
|
)
|
|
9,526
|
|
|
(4,502
|
)
|
|
132,990
|
|
|
(5,141
|
)
|
||||||
Total temporarily impaired securities
|
$
|
740,694
|
|
|
$
|
(62,996
|
)
|
|
$
|
176,220
|
|
|
$
|
(50,698
|
)
|
|
$
|
916,914
|
|
|
$
|
(113,694
|
)
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Beginning balance — Deferred preneed cemetery revenue
|
$
|
1,120,001
|
|
|
$
|
1,062,381
|
|
|
$
|
1,016,275
|
|
Net preneed and atneed deferred sales
|
596,714
|
|
|
561,899
|
|
|
531,768
|
|
|||
(Divestitures) acquisitions of businesses, net
|
(1,977
|
)
|
|
2,357
|
|
|
(25,071
|
)
|
|||
Net investment earnings (losses)
(1)
|
79,447
|
|
|
(42,806
|
)
|
|
(22,378
|
)
|
|||
Recognized deferred preneed and atneed revenue
|
(546,071
|
)
|
|
(504,064
|
)
|
|
(493,739
|
)
|
|||
Change in cancellation allowance
|
(3,015
|
)
|
|
(8,048
|
)
|
|
3,833
|
|
|||
Change in deferred preneed receipts held in trust
|
(96,417
|
)
|
|
52,050
|
|
|
55,636
|
|
|||
Effect of foreign currency and other
|
1,455
|
|
|
(3,768
|
)
|
|
(3,943
|
)
|
|||
Ending balance — Deferred preneed cemetery revenue
|
$
|
1,150,137
|
|
|
$
|
1,120,001
|
|
|
$
|
1,062,381
|
|
(1)
|
Includes both realized and unrealized investment earnings (losses).
|
5.
|
Cemetery Perpetual Care Trusts
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Deposits
|
$
|
41,450
|
|
|
$
|
38,883
|
|
|
$
|
42,220
|
|
Withdrawals
|
$
|
48,522
|
|
|
$
|
40,447
|
|
|
$
|
46,981
|
|
Purchases of available-for-sale securities
(1)
|
$
|
428,635
|
|
|
$
|
247,658
|
|
|
$
|
1,306,314
|
|
Sales of available-for-sale securities
(1)
|
$
|
374,329
|
|
|
$
|
175,057
|
|
|
$
|
1,396,669
|
|
(1)
|
The higher level of activity in 2014 was the result of changing the legal structure of the trust investments.
|
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Trust investments, at market
|
$
|
1,349,073
|
|
|
$
|
1,232,592
|
|
Cash and cash equivalents
|
58,392
|
|
|
86,835
|
|
||
Cemetery perpetual care trust investments
|
$
|
1,407,465
|
|
|
$
|
1,319,427
|
|
|
|
December 31, 2016
|
||||||||||||||
|
Fair Value Hierarchy Level
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Canadian government
|
2
|
$
|
14,280
|
|
|
$
|
88
|
|
|
$
|
(114
|
)
|
|
$
|
14,254
|
|
Corporate
|
2
|
4,636
|
|
|
100
|
|
|
(101
|
)
|
|
4,635
|
|
||||
Residential mortgage-backed
|
2
|
304
|
|
|
—
|
|
|
(1
|
)
|
|
303
|
|
||||
Asset-backed
|
2
|
220
|
|
|
3
|
|
|
(28
|
)
|
|
195
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Preferred stock
|
2
|
1,479
|
|
|
2
|
|
|
(117
|
)
|
|
1,364
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States
|
1
|
233,643
|
|
|
28,679
|
|
|
(2,337
|
)
|
|
259,985
|
|
||||
Canada
|
1
|
4,828
|
|
|
2,631
|
|
|
(108
|
)
|
|
7,351
|
|
||||
Other international
|
1
|
14,607
|
|
|
148
|
|
|
(2,236
|
)
|
|
12,519
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity
|
1
|
18,909
|
|
|
4,370
|
|
|
(412
|
)
|
|
22,867
|
|
||||
Fixed income
|
1
|
688,472
|
|
|
3,324
|
|
|
(28,997
|
)
|
|
662,799
|
|
||||
Other
|
3
|
633
|
|
|
1,254
|
|
|
—
|
|
|
1,887
|
|
||||
Trust investments, at fair value
|
|
982,011
|
|
|
40,599
|
|
|
(34,451
|
)
|
|
988,159
|
|
||||
Fixed income commingled funds
|
|
277,662
|
|
|
—
|
|
|
(9,386
|
)
|
|
268,276
|
|
||||
Private equity
|
|
97,108
|
|
|
2,240
|
|
|
(6,710
|
)
|
|
92,638
|
|
||||
Trust investments, at net asset value
|
|
374,770
|
|
|
2,240
|
|
|
(16,096
|
)
|
|
360,914
|
|
||||
Trust investments, at market
|
|
$
|
1,356,781
|
|
|
$
|
42,839
|
|
|
$
|
(50,547
|
)
|
|
$
|
1,349,073
|
|
|
|
December 31, 2015
|
||||||||||||||
|
Fair Value Hierarchy Level
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury
|
2
|
$
|
650
|
|
|
$
|
20
|
|
|
$
|
(7
|
)
|
|
$
|
663
|
|
Canadian government
|
2
|
15,412
|
|
|
321
|
|
|
(162
|
)
|
|
15,571
|
|
||||
Corporate
|
2
|
12,490
|
|
|
149
|
|
|
(284
|
)
|
|
12,355
|
|
||||
Residential mortgage-backed
|
2
|
934
|
|
|
13
|
|
|
(9
|
)
|
|
938
|
|
||||
Asset-backed
|
2
|
660
|
|
|
5
|
|
|
(31
|
)
|
|
634
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Preferred stock
|
2
|
5,850
|
|
|
55
|
|
|
(159
|
)
|
|
5,746
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States
|
1
|
230,854
|
|
|
15,224
|
|
|
(10,898
|
)
|
|
235,180
|
|
||||
Canada
|
1
|
5,460
|
|
|
2,112
|
|
|
(606
|
)
|
|
6,966
|
|
||||
Other international
|
1
|
14,793
|
|
|
160
|
|
|
(2,390
|
)
|
|
12,563
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity
|
1
|
21,783
|
|
|
3,138
|
|
|
(1,850
|
)
|
|
23,071
|
|
||||
Fixed income
|
1
|
890,025
|
|
|
530
|
|
|
(63,913
|
)
|
|
826,642
|
|
||||
Other
|
3
|
645
|
|
|
1,257
|
|
|
—
|
|
|
1,902
|
|
||||
Trust investments, at fair value
|
|
1,199,556
|
|
|
22,984
|
|
|
(80,309
|
)
|
|
1,142,231
|
|
||||
Fixed income commingled funds
|
|
20,616
|
|
|
—
|
|
|
(178
|
)
|
|
20,438
|
|
||||
Private equity
|
|
75,613
|
|
|
2,406
|
|
|
(8,096
|
)
|
|
69,923
|
|
||||
Trust investments, at net asset value
|
|
96,229
|
|
|
2,406
|
|
|
(8,274
|
)
|
|
90,361
|
|
||||
Trust investments, at market
|
|
$
|
1,295,785
|
|
|
$
|
25,390
|
|
|
$
|
(88,583
|
)
|
|
$
|
1,232,592
|
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
(In thousands)
|
||||||||||
Fair value, beginning balance at January 1
|
|
$
|
1,902
|
|
|
$
|
1,556
|
|
|
$
|
1,599
|
|
Net unrealized (losses) gains included in
Accumulated other comprehensive income
(1)
|
|
(15
|
)
|
|
346
|
|
|
(26
|
)
|
|||
Sales
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|||
Fair value, ending balance at December 31
|
|
$
|
1,887
|
|
|
$
|
1,902
|
|
|
$
|
1,556
|
|
(1)
|
All unrealized (losses) gains recognized in
Accumulated other comprehensive income
for our cemetery perpetual care trust investments are offset by a corresponding reclassification in
Accumulated other comprehensive income
to
Care trusts’ corpus
. See Note 6 for further information related to our
Care trusts’ corpus
.
|
|
Fair Value
|
||
|
(In thousands)
|
||
Due in one year or less
|
$
|
1,834
|
|
Due in one to five years
|
17,283
|
|
|
Due in five to ten years
|
69
|
|
|
Thereafter
|
201
|
|
|
|
$
|
19,387
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Fair
Market
Value
|
|
Unrealized
Losses
|
|
Fair
Market
Value
|
|
Unrealized
Losses
|
|
Fair
Market
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Canadian government
|
$
|
66
|
|
|
$
|
(1
|
)
|
|
$
|
1,961
|
|
|
$
|
(113
|
)
|
|
$
|
2,027
|
|
|
$
|
(114
|
)
|
Corporate
|
397
|
|
|
(7
|
)
|
|
1,866
|
|
|
(94
|
)
|
|
2,263
|
|
|
(101
|
)
|
||||||
Residential mortgage-backed
|
303
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
303
|
|
|
(1
|
)
|
||||||
Asset-backed
|
28
|
|
|
(22
|
)
|
|
101
|
|
|
(6
|
)
|
|
129
|
|
|
(28
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Preferred stock
|
846
|
|
|
(36
|
)
|
|
417
|
|
|
(81
|
)
|
|
1,263
|
|
|
(117
|
)
|
||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
34,844
|
|
|
(1,339
|
)
|
|
12,974
|
|
|
(998
|
)
|
|
47,818
|
|
|
(2,337
|
)
|
||||||
Canada
|
78
|
|
|
(47
|
)
|
|
558
|
|
|
(61
|
)
|
|
636
|
|
|
(108
|
)
|
||||||
Other international
|
4,177
|
|
|
(508
|
)
|
|
5,715
|
|
|
(1,728
|
)
|
|
9,892
|
|
|
(2,236
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity
|
877
|
|
|
(17
|
)
|
|
2,899
|
|
|
(395
|
)
|
|
3,776
|
|
|
(412
|
)
|
||||||
Fixed income
|
263,231
|
|
|
(4,678
|
)
|
|
348,623
|
|
|
(24,319
|
)
|
|
611,854
|
|
|
(28,997
|
)
|
||||||
Trust investments, at fair value
|
304,847
|
|
|
(6,656
|
)
|
|
375,114
|
|
|
(27,795
|
)
|
|
679,961
|
|
|
(34,451
|
)
|
||||||
Fixed income commingled funds
|
265,345
|
|
|
(9,346
|
)
|
|
2,931
|
|
|
(40
|
)
|
|
268,276
|
|
|
(9,386
|
)
|
||||||
Private equity
|
21,426
|
|
|
(268
|
)
|
|
33,519
|
|
|
(6,442
|
)
|
|
54,945
|
|
|
(6,710
|
)
|
||||||
Trust investments, at net asset value
|
286,771
|
|
|
(9,614
|
)
|
|
36,450
|
|
|
(6,482
|
)
|
|
323,221
|
|
|
(16,096
|
)
|
||||||
Total temporarily impaired securities
|
$
|
591,618
|
|
|
$
|
(16,270
|
)
|
|
$
|
411,564
|
|
|
$
|
(34,277
|
)
|
|
$
|
1,003,182
|
|
|
$
|
(50,547
|
)
|
|
December 31, 2015
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Fair
Market
Value
|
|
Unrealized
Losses
|
|
Fair
Market
Value
|
|
Unrealized
Losses
|
|
Fair
Market
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury
|
$
|
364
|
|
|
$
|
(6
|
)
|
|
$
|
35
|
|
|
$
|
(1
|
)
|
|
$
|
399
|
|
|
$
|
(7
|
)
|
Canadian government
|
1,569
|
|
|
(60
|
)
|
|
1,371
|
|
|
(102
|
)
|
|
2,940
|
|
|
(162
|
)
|
||||||
Corporate
|
4,693
|
|
|
(134
|
)
|
|
4,147
|
|
|
(150
|
)
|
|
8,840
|
|
|
(284
|
)
|
||||||
Residential mortgage-backed
|
303
|
|
|
(3
|
)
|
|
117
|
|
|
(6
|
)
|
|
420
|
|
|
(9
|
)
|
||||||
Asset-backed
|
146
|
|
|
(12
|
)
|
|
360
|
|
|
(19
|
)
|
|
506
|
|
|
(31
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Preferred stock
|
4,029
|
|
|
(159
|
)
|
|
—
|
|
|
—
|
|
|
4,029
|
|
|
(159
|
)
|
||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
United States
|
81,564
|
|
|
(7,793
|
)
|
|
14,900
|
|
|
(3,105
|
)
|
|
96,464
|
|
|
(10,898
|
)
|
||||||
Canada
|
622
|
|
|
(31
|
)
|
|
1,026
|
|
|
(575
|
)
|
|
1,648
|
|
|
(606
|
)
|
||||||
Other international
|
8,735
|
|
|
(941
|
)
|
|
2,347
|
|
|
(1,449
|
)
|
|
11,082
|
|
|
(2,390
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity
|
4,580
|
|
|
(606
|
)
|
|
1,258
|
|
|
(1,244
|
)
|
|
5,838
|
|
|
(1,850
|
)
|
||||||
Fixed income
|
519,993
|
|
|
(18,205
|
)
|
|
294,309
|
|
|
(45,708
|
)
|
|
814,302
|
|
|
(63,913
|
)
|
||||||
Trust investments, at fair value
|
626,598
|
|
|
(27,950
|
)
|
|
319,870
|
|
|
(52,359
|
)
|
|
946,468
|
|
|
(80,309
|
)
|
||||||
Fixed income commingled funds
|
20,438
|
|
|
(178
|
)
|
|
—
|
|
|
—
|
|
|
20,438
|
|
|
(178
|
)
|
||||||
Private equity
|
13,139
|
|
|
(75
|
)
|
|
30,438
|
|
|
(8,021
|
)
|
|
43,577
|
|
|
(8,096
|
)
|
||||||
Trust investments, at net asset value
|
33,577
|
|
|
(253
|
)
|
|
30,438
|
|
|
(8,021
|
)
|
|
64,015
|
|
|
(8,274
|
)
|
||||||
Total temporarily impaired securities
|
$
|
660,175
|
|
|
$
|
(28,203
|
)
|
|
$
|
350,308
|
|
|
$
|
(60,380
|
)
|
|
$
|
1,010,483
|
|
|
$
|
(88,583
|
)
|
6.
|
Deferred Preneed Receipts Held in Trust and Care Trusts’ Corpus
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
Preneed
Funeral
|
|
Preneed
Cemetery
|
|
Total
|
|
Preneed
Funeral
|
|
Preneed
Cemetery
|
|
Total
|
||||||||||||
|
|
(In thousands)
|
|
|
|
(In thousands)
|
|
||||||||||||||||
Trust investments
|
$
|
1,546,517
|
|
|
$
|
1,558,229
|
|
|
$
|
3,104,746
|
|
|
$
|
1,515,113
|
|
|
$
|
1,462,499
|
|
|
$
|
2,977,612
|
|
Accrued trust operating payables and other
|
(589
|
)
|
|
(361
|
)
|
|
(950
|
)
|
|
(1,381
|
)
|
|
(2,845
|
)
|
|
(4,226
|
)
|
||||||
Deferred preneed receipts held in trust
|
$
|
1,545,928
|
|
|
$
|
1,557,868
|
|
|
$
|
3,103,796
|
|
|
$
|
1,513,732
|
|
|
$
|
1,459,654
|
|
|
$
|
2,973,386
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||
|
(In thousands)
|
||||||
Cemetery perpetual care trust investments
|
$
|
1,407,465
|
|
|
$
|
1,319,427
|
|
Accrued trust operating payables and other
|
778
|
|
|
137
|
|
||
Care trusts’ corpus
|
$
|
1,408,243
|
|
|
$
|
1,319,564
|
|
|
Year Ended December 31, 2016
|
||||||||||||||||||
|
Funeral
Trusts
|
|
Cemetery
Trusts
|
|
Cemetery Perpetual
Care Trusts
|
|
Other, Net
|
|
Total
|
||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|||||||||
Realized gains
|
$
|
38,704
|
|
|
$
|
53,253
|
|
|
$
|
8,327
|
|
|
$
|
—
|
|
|
$
|
100,284
|
|
Realized losses
|
(46,432
|
)
|
|
(60,795
|
)
|
|
(6,579
|
)
|
|
—
|
|
|
(113,806
|
)
|
|||||
Impairment charges
|
(4,625
|
)
|
|
(5,872
|
)
|
|
(1,360
|
)
|
|
—
|
|
|
(11,857
|
)
|
|||||
Interest, dividend, and other ordinary income
|
20,299
|
|
|
17,428
|
|
|
56,594
|
|
|
—
|
|
|
94,321
|
|
|||||
Trust expenses and income taxes
|
(20,190
|
)
|
|
(22,137
|
)
|
|
(22,801
|
)
|
|
—
|
|
|
(65,128
|
)
|
|||||
Net trust investment (losses) income
|
(12,244
|
)
|
|
(18,123
|
)
|
|
34,181
|
|
|
—
|
|
|
3,814
|
|
|||||
Reclassification to deferred preneed receipts held in trust and care trusts’ corpus
|
12,244
|
|
|
18,123
|
|
|
(34,181
|
)
|
|
—
|
|
|
(3,814
|
)
|
|||||
Other expense, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(631
|
)
|
|
(631
|
)
|
|||||
Total other expense, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(631
|
)
|
|
$
|
(631
|
)
|
|
Year Ended December 31, 2015
|
||||||||||||||||||
|
Funeral
Trusts
|
|
Cemetery
Trusts
|
|
Cemetery Perpetual
Care Trusts
|
|
Other, Net
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Realized gains
|
$
|
42,034
|
|
|
$
|
51,510
|
|
|
$
|
6,933
|
|
|
$
|
—
|
|
|
$
|
100,477
|
|
Realized losses
|
(31,403
|
)
|
|
(40,092
|
)
|
|
(7,708
|
)
|
|
—
|
|
|
(79,203
|
)
|
|||||
Impairment charges
|
(3,519
|
)
|
|
(4,345
|
)
|
|
(1,812
|
)
|
|
—
|
|
|
(9,676
|
)
|
|||||
Interest, dividend, and other ordinary income
|
25,952
|
|
|
27,089
|
|
|
56,253
|
|
|
—
|
|
|
109,294
|
|
|||||
Trust expenses and income taxes
|
(21,852
|
)
|
|
(31,472
|
)
|
|
(32,643
|
)
|
|
—
|
|
|
(85,967
|
)
|
|||||
Net trust investment income
|
11,212
|
|
|
2,690
|
|
|
21,023
|
|
|
—
|
|
|
34,925
|
|
|||||
Reclassification to deferred preneed receipts held in trust and care trusts’ corpus
|
(11,212
|
)
|
|
(2,690
|
)
|
|
(21,023
|
)
|
|
—
|
|
|
(34,925
|
)
|
|||||
Other expense, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(132
|
)
|
|
(132
|
)
|
|||||
Total other expense, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(132
|
)
|
|
$
|
(132
|
)
|
|
Year Ended December 31, 2014
|
||||||||||||||||||
|
Funeral
Trusts
|
|
Cemetery
Trusts
|
|
Cemetery Perpetual
Care Trusts
|
|
Other, Net
|
|
Total
|
||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||
Realized gains
|
$
|
168,567
|
|
|
$
|
271,507
|
|
|
$
|
134,259
|
|
|
$
|
—
|
|
|
$
|
574,333
|
|
Realized losses
|
(113,748
|
)
|
|
(138,473
|
)
|
|
(51,093
|
)
|
|
—
|
|
|
(303,314
|
)
|
|||||
Impairment charges
|
(41,846
|
)
|
|
(60,040
|
)
|
|
(8,072
|
)
|
|
—
|
|
|
(109,958
|
)
|
|||||
Interest, dividend, and other ordinary income
|
22,668
|
|
|
17,597
|
|
|
52,126
|
|
|
—
|
|
|
92,391
|
|
|||||
Trust expenses and income taxes
|
(19,590
|
)
|
|
(20,833
|
)
|
|
(34,243
|
)
|
|
—
|
|
|
(74,666
|
)
|
|||||
Net trust investment income
|
16,051
|
|
|
69,758
|
|
|
92,977
|
|
|
—
|
|
|
178,786
|
|
|||||
Reclassification to deferred preneed receipts held in trust and care trusts’ corpus
|
(16,051
|
)
|
|
(69,758
|
)
|
|
(92,977
|
)
|
|
—
|
|
|
(178,786
|
)
|
|||||
Other income, net
|
—
|
|
|
—
|
|
|
—
|
|
|
1,780
|
|
|
1,780
|
|
|||||
Total other income, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,780
|
|
|
$
|
1,780
|
|
7.
|
Goodwill and Intangible Assets
|
|
2016
|
|
2015
|
||||||||||||||||||||
|
Funeral
|
|
Cemetery
|
|
Total
|
|
Funeral
|
|
Cemetery
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Balance as of January 1
|
$
|
1,490,502
|
|
|
$
|
305,838
|
|
|
$
|
1,796,340
|
|
|
$
|
1,510,879
|
|
|
$
|
299,974
|
|
|
$
|
1,810,853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase (decrease) in goodwill related to acquisitions
|
26,809
|
|
|
(151
|
)
|
|
26,658
|
|
|
6,460
|
|
|
6,201
|
|
|
12,661
|
|
||||||
Reduction of goodwill related to divestitures
|
(26,554
|
)
|
|
(270
|
)
|
|
(26,824
|
)
|
|
(8,908
|
)
|
|
(262
|
)
|
|
(9,170
|
)
|
||||||
Effect of foreign currency
|
2,898
|
|
|
9
|
|
|
2,907
|
|
|
(17,929
|
)
|
|
(75
|
)
|
|
(18,004
|
)
|
||||||
Activity
|
3,153
|
|
|
(412
|
)
|
|
2,741
|
|
|
(20,377
|
)
|
|
5,864
|
|
|
(14,513
|
)
|
||||||
Balance as of December 31
|
$
|
1,493,655
|
|
|
$
|
305,426
|
|
|
$
|
1,799,081
|
|
|
$
|
1,490,502
|
|
|
$
|
305,838
|
|
|
$
|
1,796,340
|
|
|
Useful Life
|
|
|
|
|
||||||
|
Minimum
|
|
Maximum
|
|
2016
|
|
2015
|
||||
|
(Years)
|
|
(In thousands)
|
||||||||
Amortizing intangibles:
|
|
|
|
|
|
|
|
||||
Covenants-not-to-compete
|
2
|
-
|
20
|
|
$
|
211,549
|
|
|
$
|
206,822
|
|
Customer relationships
|
10
|
-
|
20
|
|
146,876
|
|
|
154,364
|
|
||
Tradenames
|
5
|
-
|
5
|
|
9,150
|
|
|
12,750
|
|
||
Other
|
5
|
-
|
40
|
|
11,927
|
|
|
11,927
|
|
||
|
|
|
|
|
379,502
|
|
|
385,863
|
|
||
Less: Accumulated amortization
|
|
|
|
|
268,061
|
|
|
257,157
|
|
||
Amortizing intangibles, net
|
|
|
|
|
111,441
|
|
|
128,706
|
|
||
|
|
|
|
|
|
|
|
||||
Non-amortizing intangibles:
|
|
|
|
|
|
|
|
||||
Tradenames
|
|
|
Indefinite
|
|
245,984
|
|
|
230,659
|
|
||
Other
|
|
|
Indefinite
|
|
10,640
|
|
|
10,640
|
|
||
Non-amortizing intangibles
|
|
|
|
|
256,624
|
|
|
241,299
|
|
||
|
|
|
|
|
|
|
|
||||
Intangible assets, net
|
|
|
|
|
$
|
368,065
|
|
|
$
|
370,005
|
|
2017
|
$
|
11,718
|
|
2018
|
$
|
10,961
|
|
2019
|
$
|
7,711
|
|
2020
|
$
|
6,613
|
|
2021
|
$
|
6,504
|
|
8.
|
Income Taxes
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
United States
|
$
|
287,946
|
|
|
$
|
331,622
|
|
|
$
|
360,800
|
|
Foreign
|
38,712
|
|
|
38,729
|
|
|
41,800
|
|
|||
|
$
|
326,658
|
|
|
$
|
370,351
|
|
|
$
|
402,600
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Current:
|
|
|
|
|
|
|
|
|
|||
United States
|
$
|
113,629
|
|
|
$
|
94,502
|
|
|
$
|
67,511
|
|
Foreign
|
12,084
|
|
|
9,270
|
|
|
10,859
|
|
|||
State
|
16,150
|
|
|
13,207
|
|
|
17,939
|
|
|||
Total current income taxes
|
141,863
|
|
|
116,979
|
|
|
96,309
|
|
|||
Deferred:
|
|
|
|
|
|
|
|
|
|||
United States
|
$
|
(19,496
|
)
|
|
$
|
15,918
|
|
|
$
|
108,514
|
|
Foreign
|
22,708
|
|
|
(878
|
)
|
|
(653
|
)
|
|||
State
|
4,278
|
|
|
3,008
|
|
|
21,810
|
|
|||
Total deferred income taxes
|
7,490
|
|
|
18,048
|
|
|
129,671
|
|
|||
Total income taxes
|
$
|
149,353
|
|
|
$
|
135,027
|
|
|
$
|
225,980
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Computed tax provision at the applicable federal statutory income tax rate
|
$
|
114,331
|
|
|
$
|
129,623
|
|
|
$
|
140,910
|
|
State and local taxes, net of federal income tax benefits
|
13,279
|
|
|
10,542
|
|
|
25,736
|
|
|||
Foreign jurisdiction differences
|
(2,557
|
)
|
|
(5,183
|
)
|
|
(4,424
|
)
|
|||
Permanent differences associated with divestitures
|
9,267
|
|
|
2,909
|
|
|
61,892
|
|
|||
Changes in uncertain tax positions
|
5,669
|
|
|
4,046
|
|
|
4,624
|
|
|||
Foreign valuation allowance, net of federal income tax benefits
|
15,850
|
|
|
—
|
|
|
—
|
|
|||
Other
|
(6,486
|
)
|
|
(6,910
|
)
|
|
(2,758
|
)
|
|||
Provision for income taxes
|
$
|
149,353
|
|
|
$
|
135,027
|
|
|
$
|
225,980
|
|
Total consolidated effective tax rate
|
45.7
|
%
|
|
36.5
|
%
|
|
56.1
|
%
|
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Inventories and cemetery property
|
$
|
(335,795
|
)
|
|
$
|
(338,143
|
)
|
Property and equipment
|
(149,450
|
)
|
|
(168,265
|
)
|
||
Intangibles
|
(294,251
|
)
|
|
(302,217
|
)
|
||
Other
|
(6,980
|
)
|
|
(12,047
|
)
|
||
Deferred tax liabilities
|
(786,476
|
)
|
|
(820,672
|
)
|
||
Loss and tax credit carryforwards
|
157,795
|
|
|
171,725
|
|
||
Deferred revenue on preneed funeral and cemetery contracts
|
223,174
|
|
|
226,483
|
|
||
Accrued liabilities
|
84,230
|
|
|
102,351
|
|
||
Deferred tax assets
|
465,199
|
|
|
500,559
|
|
||
Less: Valuation allowance
|
(132,500
|
)
|
|
(126,654
|
)
|
||
Net deferred income tax liability
|
$
|
(453,777
|
)
|
|
$
|
(446,767
|
)
|
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Non-current deferred tax assets
|
$
|
861
|
|
|
$
|
23,817
|
|
Non-current deferred tax liabilities
|
(454,638
|
)
|
|
(470,584
|
)
|
||
Net deferred income tax liability
|
$
|
(453,777
|
)
|
|
$
|
(446,767
|
)
|
|
Federal, State and Foreign Tax
|
||
|
(In thousands)
|
||
Balance at December 31, 2013
|
$
|
177,830
|
|
Additions to tax positions related to the current year
|
8,721
|
|
|
Additions to tax positions related to prior years
|
10,085
|
|
|
Reductions to tax positions related to the current year
|
(1,075
|
)
|
|
Reductions to tax positions related to prior years
|
(2,325
|
)
|
|
Reductions to tax positions related to the acquisition of Stewart, offset to goodwill
|
(1,556
|
)
|
|
Balance at December 31, 2014
|
$
|
191,680
|
|
Additions to tax positions related to the current year
|
3,235
|
|
|
Reduction to tax positions related to prior years
|
(12,370
|
)
|
|
Balance at December 31, 2015
|
$
|
182,545
|
|
Reductions to tax positions related to prior years
|
(4,219
|
)
|
|
Balance at December 31, 2016
|
$
|
178,326
|
|
|
Federal
|
|
State
|
|
Foreign
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
2017
|
$
|
—
|
|
|
$
|
241,619
|
|
|
$
|
—
|
|
|
$
|
241,619
|
|
2018
|
—
|
|
|
111,084
|
|
|
—
|
|
|
111,084
|
|
||||
2019
|
—
|
|
|
143,491
|
|
|
—
|
|
|
143,491
|
|
||||
2020
|
200
|
|
|
183,071
|
|
|
—
|
|
|
183,271
|
|
||||
Thereafter
|
1,900
|
|
|
3,111,526
|
|
|
6,632
|
|
|
3,120,058
|
|
||||
Total
|
$
|
2,100
|
|
|
$
|
3,790,791
|
|
|
$
|
6,632
|
|
|
$
|
3,799,523
|
|
|
Federal
|
|
State
|
|
Foreign
|
|
Total
|
||||||||
|
|
|
(In thousands)
|
|
|
||||||||||
Loss and tax credit carryforwards
|
$
|
914
|
|
|
$
|
136,462
|
|
|
$
|
20,419
|
|
|
$
|
157,795
|
|
Valuation allowance
|
$
|
—
|
|
|
$
|
101,417
|
|
|
$
|
31,083
|
|
|
$
|
132,500
|
|
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
7.0% Senior Notes due June 2017
|
$
|
—
|
|
|
$
|
295,000
|
|
7.625% Senior Notes due October 2018
|
250,000
|
|
|
250,000
|
|
||
4.5% Senior Notes due November 2020
|
200,000
|
|
|
200,000
|
|
||
8.0% Senior Notes due November 2021
|
150,000
|
|
|
150,000
|
|
||
5.375% Senior Notes due January 2022
|
425,000
|
|
|
425,000
|
|
||
5.375% Senior Notes due May 2024
|
850,000
|
|
|
850,000
|
|
||
7.5% Senior Notes due April 2027
|
200,000
|
|
|
200,000
|
|
||
Term Loan due July 2018
|
—
|
|
|
310,000
|
|
||
Bank Credit Facility due July 2018
|
—
|
|
|
270,000
|
|
||
Term Loan due March 2021
|
673,750
|
|
|
—
|
|
||
Bank Credit Facility due March 2021
|
350,000
|
|
|
—
|
|
||
Obligations under capital leases
|
208,758
|
|
|
204,246
|
|
||
Mortgage notes and other debt, maturities through 2050
|
3,753
|
|
|
4,037
|
|
||
Unamortized premiums (discounts) and other, net
|
8,313
|
|
|
8,636
|
|
||
Unamortized debt issuance costs
|
(32,984
|
)
|
|
(42,491
|
)
|
||
Total debt
|
3,286,590
|
|
|
3,124,428
|
|
||
Less: Current maturities of long-term debt
|
(89,974
|
)
|
|
(86,823
|
)
|
||
Total long-term debt
|
$
|
3,196,616
|
|
|
$
|
3,037,605
|
|
2017
|
$
|
94,725
|
|
2018
|
350,609
|
|
|
2019
|
74,169
|
|
|
2020
|
295,231
|
|
|
2021
|
647,792
|
|
|
2022 and thereafter
|
1,848,735
|
|
|
|
$
|
3,311,261
|
|
•
|
$310.0 million
in aggregate principal of our Term Loan due to July 2018;
|
•
|
$295.0 million
in aggregate principal of our 7.0% Senior Notes due 2017;
|
•
|
$280.0 million
in aggregate principal of our Bank Credit Facility due July 2018; and
|
•
|
$26.3 million
in aggregate principal of our Term Loan due March 2021.
|
•
|
$0.2 million
in other debt.
|
•
|
$197.4 million
in aggregate principal of our
6.75% Senior Notes due April 2016
;
|
•
|
$100.0 million
in aggregate principal of our Bank Credit Facility;
|
•
|
$60.0 million
in aggregate principal of our Term Loan due
July 2018
; and
|
•
|
$0.2 million
in other debt.
|
Payments in 2016
|
$
|
156,950
|
|
Payments in 2015
|
$
|
164,748
|
|
Payments in 2014
|
$
|
175,327
|
|
Payments in 2017
|
$
|
152,682
|
|
Payments in 2018
|
$
|
147,342
|
|
Payments in 2019
|
$
|
132,269
|
|
Payments in 2020
|
$
|
130,745
|
|
Payments in 2021
|
$
|
99,515
|
|
Payments in 2022 and thereafter
|
$
|
197,077
|
|
10.
|
Credit Risk and Fair Value of Financial Instruments
|
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
7.0% Senior Notes due June 2017
|
$
|
—
|
|
|
$
|
314,618
|
|
7.625% Senior Notes due October 2018
|
272,353
|
|
|
279,375
|
|
||
4.5% Senior Notes due November 2020
|
205,000
|
|
|
201,500
|
|
||
8.0% Senior Notes due November 2021
|
175,500
|
|
|
176,438
|
|
||
5.375% Senior Notes due January 2022
|
444,614
|
|
|
445,188
|
|
||
5.375% Senior Notes due May 2024
|
884,000
|
|
|
884,094
|
|
||
7.5% Senior Notes due April 2027
|
231,590
|
|
|
216,500
|
|
||
Term Loan due July 2018
|
—
|
|
|
310,000
|
|
||
Bank Credit Facility due July 2018
|
—
|
|
|
270,000
|
|
||
Term Loan due March 2021
|
673,750
|
|
|
—
|
|
||
Bank Credit Facility due March 2021
|
350,000
|
|
|
—
|
|
||
Mortgage notes and other debt, maturities through 2050
|
3,753
|
|
|
4,047
|
|
||
Total fair value of debt instruments
|
$
|
3,240,560
|
|
|
$
|
3,101,760
|
|
11.
|
Commitments and Contingencies
|
|
Operating
|
|
Capital
|
||||
|
(In thousands)
|
||||||
2017
|
$
|
14,201
|
|
|
$
|
59,598
|
|
2018
|
12,122
|
|
|
52,353
|
|
||
2019
|
10,028
|
|
|
21,533
|
|
||
2020
|
8,542
|
|
|
29,528
|
|
||
2021
|
7,564
|
|
|
24,829
|
|
||
2022 and thereafter
|
67,655
|
|
|
20,917
|
|
||
Total
|
$
|
120,112
|
|
|
$
|
208,758
|
|
Less: Interest on capital leases
|
|
|
(16,417
|
)
|
|||
Total principal payable on capital leases
|
|
|
|
$
|
192,341
|
|
|
Employment and Management
|
|
Consulting
|
|
Non-Competition
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
2017
|
$
|
1,692
|
|
|
$
|
185
|
|
|
$
|
4,641
|
|
|
$
|
6,518
|
|
2018
|
1,035
|
|
|
138
|
|
|
4,436
|
|
|
5,609
|
|
||||
2019
|
818
|
|
|
115
|
|
|
4,203
|
|
|
5,136
|
|
||||
2020
|
375
|
|
|
45
|
|
|
3,017
|
|
|
3,437
|
|
||||
2021
|
107
|
|
|
—
|
|
|
2,022
|
|
|
2,129
|
|
||||
2022 and thereafter
|
—
|
|
|
—
|
|
|
4,315
|
|
|
4,315
|
|
||||
Total
|
$
|
4,027
|
|
|
$
|
483
|
|
|
$
|
22,634
|
|
|
$
|
27,144
|
|
12.
|
Equity
|
|
Foreign
Currency
Translation
Adjustment
|
|
Unrealized
Gains and
Losses
|
|
Accumulated
Other
Comprehensive
(Loss) Income
|
||||||
|
(In thousands)
|
||||||||||
Balance at December 31, 2013
|
$
|
88,441
|
|
|
$
|
—
|
|
|
$
|
88,441
|
|
Activity in 2014
|
(32,141
|
)
|
|
—
|
|
|
(32,141
|
)
|
|||
Reclassification of foreign currency translation adjustments to
Net income
from discontinued operations
|
3,114
|
|
|
—
|
|
|
3,114
|
|
|||
Net unrealized losses associated with available-for- sale securities of the trusts, net of taxes
|
—
|
|
|
(166,570
|
)
|
|
(166,570
|
)
|
|||
Reclassification of net unrealized losses activity attributable to the
Deferred preneed receipts held in trust and Care trusts’ corpus,
net of taxes
|
—
|
|
|
166,570
|
|
|
166,570
|
|
|||
Balance at December 31, 2014
|
$
|
59,414
|
|
|
$
|
—
|
|
|
$
|
59,414
|
|
Activity in 2015
|
(53,250
|
)
|
|
—
|
|
|
(53,250
|
)
|
|||
Net unrealized losses associated with available-for- sale securities of the trusts, net of taxes
|
—
|
|
|
(85,140
|
)
|
|
(85,140
|
)
|
|||
Reclassification of net unrealized losses activity attributable to the
Deferred preneed receipts held in trust and Care trusts’ corpus,
net of taxes
|
—
|
|
|
85,140
|
|
|
85,140
|
|
|||
Balance at December 31, 2015
|
$
|
6,164
|
|
|
$
|
—
|
|
|
$
|
6,164
|
|
Activity in 2016
|
10,328
|
|
|
—
|
|
|
10,328
|
|
|||
Net unrealized gains associated with available-for-sale securities of the trusts, net of taxes
|
—
|
|
|
120,573
|
|
|
120,573
|
|
|||
Reclassification of net unrealized gains activity attributable to the
Deferred preneed receipts held in trust
and
Care trusts’ corpus,
net of taxes
|
—
|
|
|
(120,573
|
)
|
|
(120,573
|
)
|
|||
Balance at December 31, 2016
|
$
|
16,492
|
|
|
$
|
—
|
|
|
$
|
16,492
|
|
13.
|
Share-Based Compensation
|
Assumptions
|
|
2016
|
|
2015
|
|
2014
|
|||
Dividend yield
|
|
2.0
|
%
|
|
1.8
|
%
|
|
1.8
|
%
|
Expected volatility
|
|
19.7
|
%
|
|
23.3
|
%
|
|
27.1
|
%
|
Risk-free interest rate
|
|
1.0
|
%
|
|
1.3
|
%
|
|
1.1
|
%
|
Expected holding period (years)
|
|
4.0
|
|
|
4.0
|
|
|
4.0
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Total pretax employee share-based compensation expense included in net income
|
$
|
14,056
|
|
|
$
|
13,843
|
|
|
$
|
13,127
|
|
Income tax benefit related to share-based compensation included in net income
|
$
|
6,427
|
|
|
$
|
5,068
|
|
|
$
|
7,368
|
|
|
|
Options Outstanding
|
|
Options Exercisable
|
||||||||||||
Range of Exercise Price
|
|
Number
Outstanding at
December 31, 2016
|
|
Weighted-Average Remaining Contractual Life
(in years)
|
|
Weighted-
Average Exercise Price
|
|
Number
Exercisable at
December 31, 2016
|
|
Weighted-
Average Exercise Price
|
||||||
$ 5.00 — 10.00
|
|
2,032,763
|
|
|
1.7
|
|
$
|
8.42
|
|
|
2,032,763
|
|
|
$
|
8.42
|
|
$10.01 — 15.00
|
|
1,361,450
|
|
|
3.1
|
|
$
|
11.18
|
|
|
1,361,450
|
|
|
$
|
11.18
|
|
$15.01 — 20.00
|
|
3,548,915
|
|
|
4.7
|
|
$
|
16.50
|
|
|
2,801,293
|
|
|
$
|
16.26
|
|
$20.01 — 25.00
|
|
3,832,008
|
|
|
6.6
|
|
$
|
22.65
|
|
|
743,085
|
|
|
$
|
22.97
|
|
$ 5.00 — 25.00
|
|
10,775,136
|
|
|
4.6
|
|
$
|
16.49
|
|
|
6,938,591
|
|
|
$
|
13.69
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Weighted average grant-date fair value of stock options granted
|
$
|
4.01
|
|
|
$
|
3.79
|
|
|
$
|
3.34
|
|
Total fair value of stock options vested (in thousands)
|
$
|
7,690
|
|
|
$
|
7,973
|
|
|
$
|
6,814
|
|
Total intrinsic value of stock options exercised (in thousands)
|
$
|
37,284
|
|
|
$
|
52,513
|
|
|
$
|
42,048
|
|
|
Restricted
Share Awards
|
|
Weighted-Average
Grant-Date
Fair Value
|
|||
Nonvested restricted share awards at December 31, 2015
|
573,739
|
|
|
$
|
19.32
|
|
Granted
|
241,510
|
|
|
$
|
22.28
|
|
Vested
|
(313,247
|
)
|
|
$
|
18.14
|
|
Forfeited and other
|
(1,258
|
)
|
|
$
|
20.85
|
|
Nonvested restricted share awards at December 31, 2016
|
500,744
|
|
|
$
|
21.48
|
|
|
Restricted
Share Units
|
|
Weighted-Average
Grant-Date
Fair Value
|
|||
Nonvested restricted share units at December 31, 2015
|
—
|
|
|
$
|
—
|
|
Granted
|
130,660
|
|
|
$
|
25.72
|
|
Vested
|
(1,950
|
)
|
|
$
|
25.72
|
|
Forfeited and other
|
(5,200
|
)
|
|
$
|
25.72
|
|
Nonvested restricted share units at December 31, 2016
|
123,510
|
|
|
$
|
25.72
|
|
14.
|
Retirement Plans
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Interest cost on projected benefit obligation
|
$
|
1,179
|
|
|
$
|
1,198
|
|
|
$
|
1,293
|
|
Recognized net actuarial losses (gains)
|
259
|
|
|
(1,327
|
)
|
|
2,401
|
|
|||
Total net periodic benefit cost
|
$
|
1,438
|
|
|
$
|
(129
|
)
|
|
$
|
3,694
|
|
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Change in Benefit Obligation:
|
|
|
|
|
|
||
Benefit obligation at beginning of year
|
$
|
32,305
|
|
|
$
|
36,920
|
|
Interest cost
|
1,179
|
|
|
1,198
|
|
||
Actuarial gain (loss)
|
259
|
|
|
(1,327
|
)
|
||
Benefits paid
|
(3,665
|
)
|
|
(4,486
|
)
|
||
Benefit obligation at end of year
|
$
|
30,078
|
|
|
$
|
32,305
|
|
Change in Plan Assets:
|
|
|
|
|
|
||
Fair value of plan assets at beginning of year
|
$
|
—
|
|
|
$
|
—
|
|
Employer contributions
|
3,665
|
|
|
4,486
|
|
||
Benefits paid, including expenses
|
(3,665
|
)
|
|
(4,486
|
)
|
||
Fair value of plan assets at end of year
|
$
|
—
|
|
|
$
|
—
|
|
Funded status of plan
|
$
|
(30,078
|
)
|
|
$
|
(32,305
|
)
|
|
|
|
|
||||
Funding Summary:
|
|
|
|
|
|
||
Projected benefit obligations
|
$
|
30,078
|
|
|
$
|
32,305
|
|
Accumulated benefit obligation
|
$
|
30,078
|
|
|
$
|
32,305
|
|
Amounts Recognized in the Consolidated Balance Sheet:
|
|
|
|
|
|
||
Accounts payable and accrued liabilities
|
$
|
(3,448
|
)
|
|
$
|
(3,723
|
)
|
Accrued pension - included in
Other liabilities
|
(26,630
|
)
|
|
(28,582
|
)
|
||
Total accrued benefit liability
|
$
|
(30,078
|
)
|
|
$
|
(32,305
|
)
|
|
2016
|
|
2015
|
|
2014
|
|||
Weighted-average discount rate used to determine obligations
|
3.76
|
%
|
|
3.86
|
%
|
|
3.42
|
%
|
Weighted-average discount rate used to determine net periodic pension cost
|
3.96
|
%
|
|
2.47
|
%
|
|
3.69
|
%
|
2017
|
$
|
3,448
|
|
2018
|
$
|
3,237
|
|
2019
|
$
|
3,166
|
|
2020
|
$
|
2,739
|
|
2021
|
$
|
2,428
|
|
Years 2022 through 2026
|
$
|
9,959
|
|
Years of Vesting Service
|
|
Percentage of Deferred Compensation
|
0 — 5 years
|
|
75% of the first 6% of deferred compensation
|
6 — 10 years
|
|
100% of the first 6% of deferred compensation
|
11 or more years
|
|
125% of the first 6% of deferred compensation
|
15.
|
Segment Reporting
|
|
Reportable Segments
|
|
|
|
|
||||||||||
|
Funeral
|
|
Cemetery
|
|
Corporate
|
|
Consolidated
|
||||||||
|
(In thousands)
|
|
|
||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenue from external customers
|
$
|
1,868,883
|
|
|
$
|
1,162,254
|
|
|
$
|
—
|
|
|
$
|
3,031,137
|
|
Interest expense
|
$
|
3,910
|
|
|
$
|
101
|
|
|
$
|
158,082
|
|
|
$
|
162,093
|
|
Depreciation and amortization
|
$
|
106,251
|
|
|
$
|
31,432
|
|
|
$
|
9,550
|
|
|
$
|
147,233
|
|
Amortization of intangible assets
|
$
|
20,442
|
|
|
$
|
10,440
|
|
|
$
|
74
|
|
|
$
|
30,956
|
|
Gross profit
|
$
|
364,237
|
|
|
$
|
312,197
|
|
|
$
|
—
|
|
|
$
|
676,434
|
|
Amortization of cemetery property
|
$
|
—
|
|
|
$
|
66,745
|
|
|
$
|
—
|
|
|
$
|
66,745
|
|
Capital expenditures
|
$
|
68,434
|
|
|
$
|
113,395
|
|
|
$
|
11,617
|
|
|
$
|
193,446
|
|
Total assets
|
$
|
5,156,144
|
|
|
$
|
6,484,317
|
|
|
$
|
397,688
|
|
|
$
|
12,038,149
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue from external customers
|
$
|
1,888,828
|
|
|
$
|
1,097,213
|
|
|
$
|
—
|
|
|
$
|
2,986,041
|
|
Interest expense
|
$
|
4,230
|
|
|
$
|
450
|
|
|
$
|
168,217
|
|
|
$
|
172,897
|
|
Depreciation and amortization
|
$
|
102,937
|
|
|
$
|
29,783
|
|
|
$
|
8,736
|
|
|
$
|
141,456
|
|
Amortization of intangible assets
|
$
|
22,636
|
|
|
$
|
8,748
|
|
|
$
|
75
|
|
|
$
|
31,459
|
|
Gross profit
|
$
|
393,156
|
|
|
$
|
281,433
|
|
|
$
|
—
|
|
|
$
|
674,589
|
|
Amortization of cemetery property
|
$
|
—
|
|
|
$
|
62,407
|
|
|
$
|
—
|
|
|
$
|
62,407
|
|
Capital expenditures
|
$
|
52,880
|
|
|
$
|
84,345
|
|
|
$
|
13,761
|
|
|
$
|
150,986
|
|
Total assets
|
$
|
5,141,544
|
|
|
$
|
6,181,877
|
|
|
$
|
352,976
|
|
|
$
|
11,676,397
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue from external customers
|
$
|
1,920,475
|
|
|
$
|
1,073,536
|
|
|
$
|
—
|
|
|
$
|
2,994,011
|
|
Interest expense
|
$
|
4,714
|
|
|
$
|
510
|
|
|
$
|
172,347
|
|
|
$
|
177,571
|
|
Depreciation and amortization
|
$
|
101,801
|
|
|
$
|
28,745
|
|
|
$
|
9,456
|
|
|
$
|
140,002
|
|
Amortization of intangible assets
|
$
|
24,841
|
|
|
$
|
11,700
|
|
|
$
|
99
|
|
|
$
|
36,640
|
|
Gross profit
|
$
|
409,701
|
|
|
$
|
265,984
|
|
|
$
|
—
|
|
|
$
|
675,685
|
|
Amortization of cemetery property
|
$
|
—
|
|
|
$
|
60,439
|
|
|
$
|
—
|
|
|
$
|
60,439
|
|
Capital expenditures
|
$
|
52,610
|
|
|
$
|
78,588
|
|
|
$
|
13,301
|
|
|
$
|
144,499
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Gross profit from reportable segments
|
$
|
676,434
|
|
|
$
|
674,589
|
|
|
$
|
675,685
|
|
General and administrative expenses
|
(137,730
|
)
|
|
(130,813
|
)
|
|
(184,749
|
)
|
|||
(Losses) gains on divestitures and impairment charges, net
|
(26,819
|
)
|
|
6,522
|
|
|
116,613
|
|
|||
Operating income
|
511,885
|
|
|
550,298
|
|
|
607,549
|
|
|||
Interest expense
|
(162,093
|
)
|
|
(172,897
|
)
|
|
(177,571
|
)
|
|||
Losses on early extinguishment of debt, net
|
(22,503
|
)
|
|
(6,918
|
)
|
|
(29,158
|
)
|
|||
Other (expense) income, net
|
(631
|
)
|
|
(132
|
)
|
|
1,780
|
|
|||
Income from continuing operations before income taxes
|
$
|
326,658
|
|
|
$
|
370,351
|
|
|
$
|
402,600
|
|
|
United States
|
|
Canada
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
2016
|
|
|
|
|
|
|
|
|
|||
Revenue from external customers
|
$
|
2,848,876
|
|
|
$
|
182,261
|
|
|
$
|
3,031,137
|
|
Interest expense (income)
|
$
|
162,341
|
|
|
$
|
(248
|
)
|
|
$
|
162,093
|
|
Depreciation and amortization
|
$
|
138,560
|
|
|
$
|
8,673
|
|
|
$
|
147,233
|
|
Amortization of intangible assets
|
$
|
30,427
|
|
|
$
|
529
|
|
|
$
|
30,956
|
|
Amortization of cemetery property
|
$
|
61,449
|
|
|
$
|
5,296
|
|
|
$
|
66,745
|
|
Operating income
|
$
|
460,387
|
|
|
$
|
51,498
|
|
|
$
|
511,885
|
|
(Losses) gains on divestitures and impairment charges, net
|
$
|
(27,658
|
)
|
|
$
|
839
|
|
|
$
|
(26,819
|
)
|
Long-lived assets
|
$
|
5,705,070
|
|
|
$
|
266,053
|
|
|
$
|
5,971,123
|
|
2015
|
|
|
|
|
|
|
|
|
|||
Revenue from external customers
|
$
|
2,805,407
|
|
|
$
|
180,634
|
|
|
$
|
2,986,041
|
|
Interest expense
|
$
|
172,697
|
|
|
$
|
200
|
|
|
$
|
172,897
|
|
Depreciation and amortization
|
$
|
132,393
|
|
|
$
|
9,063
|
|
|
$
|
141,456
|
|
Amortization of intangible assets
|
$
|
30,856
|
|
|
$
|
603
|
|
|
$
|
31,459
|
|
Amortization of cemetery property
|
$
|
58,429
|
|
|
$
|
3,978
|
|
|
$
|
62,407
|
|
Operating income
|
$
|
498,634
|
|
|
$
|
51,664
|
|
|
$
|
550,298
|
|
Gains on divestitures and impairment charges, net
|
$
|
1,778
|
|
|
$
|
4,744
|
|
|
$
|
6,522
|
|
Long-lived assets
|
$
|
5,729,721
|
|
|
$
|
248,734
|
|
|
$
|
5,978,455
|
|
2014
|
|
|
|
|
|
|
|
|
|||
Revenue from external customers
|
$
|
2,792,009
|
|
|
$
|
202,002
|
|
|
$
|
2,994,011
|
|
Interest expense
|
$
|
177,245
|
|
|
$
|
326
|
|
|
$
|
177,571
|
|
Depreciation and amortization
|
$
|
129,510
|
|
|
$
|
10,492
|
|
|
$
|
140,002
|
|
Amortization of intangible assets
|
$
|
35,895
|
|
|
$
|
745
|
|
|
$
|
36,640
|
|
Amortization of cemetery property
|
$
|
55,679
|
|
|
$
|
4,760
|
|
|
$
|
60,439
|
|
Operating income
|
$
|
557,608
|
|
|
$
|
49,941
|
|
|
$
|
607,549
|
|
Gains on divestitures and impairment charges, net
|
$
|
116,046
|
|
|
$
|
567
|
|
|
$
|
116,613
|
|
16.
|
Supplementary Information
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Cash and cash equivalents:
|
|
|
|
|
|
||
Cash
|
$
|
146,684
|
|
|
$
|
106,831
|
|
Commercial paper and temporary investments
|
48,302
|
|
|
27,768
|
|
||
|
$
|
194,986
|
|
|
$
|
134,599
|
|
Receivables, net:
|
|
|
|
|
|
||
Notes receivable
|
$
|
1,259
|
|
|
$
|
2,056
|
|
Atneed funeral receivables, net of allowances of
$1,881
and $3,343, respectively
|
46,917
|
|
|
52,184
|
|
||
Atneed cemetery receivables, net of allowances of
$1,514
and $2,153, respectively
|
17,765
|
|
|
13,585
|
|
||
Other
|
32,514
|
|
|
22,637
|
|
||
|
$
|
98,455
|
|
|
$
|
90,462
|
|
Other current assets:
|
|
|
|
|
|
||
Income tax receivable
|
$
|
3,609
|
|
|
$
|
15,662
|
|
Prepaid insurance
|
4,437
|
|
|
5,398
|
|
||
Restricted cash
|
11,978
|
|
|
12,587
|
|
||
Other
|
14,500
|
|
|
13,508
|
|
||
|
$
|
34,524
|
|
|
$
|
47,155
|
|
Cemetery property:
|
|
|
|
|
|
||
Undeveloped land
|
$
|
1,184,710
|
|
|
$
|
1,186,861
|
|
Developed lots, lawn crypts, mausoleum spaces, cremation niches, and cremation memorialization property
|
592,225
|
|
|
566,154
|
|
||
|
$
|
1,776,935
|
|
|
$
|
1,753,015
|
|
Property and equipment:
|
|
|
|
|
|
||
Land
|
$
|
595,096
|
|
|
$
|
591,407
|
|
Buildings and improvements
|
1,879,553
|
|
|
1,834,403
|
|
||
Operating equipment
|
549,879
|
|
|
530,195
|
|
||
Leasehold improvements
|
33,900
|
|
|
52,121
|
|
||
Capital leases
|
234,411
|
|
|
220,784
|
|
||
|
3,292,839
|
|
|
3,228,910
|
|
||
Less: Accumulated depreciation
|
(1,328,262
|
)
|
|
(1,253,867
|
)
|
||
Less: Accumulated amortization of capital leases
|
(136,990
|
)
|
|
(128,321
|
)
|
||
|
$
|
1,827,587
|
|
|
$
|
1,846,722
|
|
Deferred charges and other assets:
|
|
|
|
|
|
||
Intangible assets, net
|
$
|
368,065
|
|
|
$
|
370,005
|
|
Restricted cash
|
4,542
|
|
|
3,907
|
|
||
Deferred tax assets
|
861
|
|
|
23,817
|
|
||
Notes receivable, net of allowances of $11,334
|
9,598
|
|
|
10,229
|
|
||
Cash surrender value of insurance policies
|
119,819
|
|
|
108,726
|
|
||
Other
|
64,635
|
|
|
65,694
|
|
||
|
$
|
567,520
|
|
|
$
|
582,378
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Accounts payable and accrued liabilities:
|
|
|
|
|
|
||
Accounts payable
|
$
|
155,802
|
|
|
$
|
140,019
|
|
Accrued benefits
|
88,392
|
|
|
86,908
|
|
||
Accrued interest
|
27,991
|
|
|
28,673
|
|
||
Accrued property taxes
|
12,883
|
|
|
11,594
|
|
||
Self-insurance reserves
|
77,993
|
|
|
76,611
|
|
||
Bank overdraft
|
20,927
|
|
|
21,808
|
|
||
Other accrued liabilities
|
55,948
|
|
|
57,203
|
|
||
|
$
|
439,936
|
|
|
$
|
422,816
|
|
Other liabilities:
|
|
|
|
|
|
||
Accrued pension
|
$
|
26,630
|
|
|
$
|
28,582
|
|
Deferred compensation
|
105,013
|
|
|
92,199
|
|
||
Customer refund obligation reserve
|
52,068
|
|
|
55,153
|
|
||
Tax liability
|
235,625
|
|
|
234,176
|
|
||
Payable to perpetual care fund
|
77,148
|
|
|
71,133
|
|
||
Other
|
13,838
|
|
|
15,704
|
|
||
|
$
|
510,322
|
|
|
$
|
496,947
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Property and merchandise revenue:
|
|
|
|
|
|
|
|
|
|||
Funeral
|
$
|
611,441
|
|
|
$
|
608,335
|
|
|
$
|
616,992
|
|
Cemetery
|
912,788
|
|
|
849,255
|
|
|
816,980
|
|
|||
Total property and merchandise revenue
|
1,524,229
|
|
|
1,457,590
|
|
|
1,433,972
|
|
|||
Services revenue:
|
|
|
|
|
|
|
|
|
|||
Funeral
|
1,126,474
|
|
|
1,146,124
|
|
|
1,167,385
|
|
|||
Cemetery
|
219,044
|
|
|
217,462
|
|
|
222,834
|
|
|||
Total services revenue
|
1,345,518
|
|
|
1,363,586
|
|
|
1,390,219
|
|
|||
Other revenue
|
161,390
|
|
|
164,865
|
|
|
169,820
|
|
|||
Total revenue
|
$
|
3,031,137
|
|
|
$
|
2,986,041
|
|
|
$
|
2,994,011
|
|
Property and merchandise costs and expenses:
|
|
|
|
|
|
|
|
|
|||
Funeral
|
$
|
287,272
|
|
|
$
|
290,574
|
|
|
$
|
292,031
|
|
Cemetery
|
489,326
|
|
|
458,023
|
|
|
485,291
|
|
|||
Total cost of property and merchandise
|
776,598
|
|
|
748,597
|
|
|
777,322
|
|
|||
Services costs and expenses:
|
|
|
|
|
|
|
|
|
|||
Funeral
|
627,099
|
|
|
624,294
|
|
|
630,357
|
|
|||
Cemetery
|
104,570
|
|
|
103,197
|
|
|
70,439
|
|
|||
Total cost of services
|
731,669
|
|
|
727,491
|
|
|
700,796
|
|
|||
Overhead and other expenses
|
846,436
|
|
|
835,364
|
|
|
840,208
|
|
|||
Total cost and expenses
|
$
|
2,354,703
|
|
|
$
|
2,311,452
|
|
|
$
|
2,318,326
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Net change in capital expenditure accrual
|
$
|
(1,435
|
)
|
|
$
|
5,571
|
|
|
$
|
1,022
|
|
Options exercised by attestation
|
$
|
—
|
|
|
$
|
122
|
|
|
$
|
761
|
|
Shares repurchased
|
$
|
—
|
|
|
$
|
(122
|
)
|
|
$
|
(761
|
)
|
Non-cash acquisition of capital leases
|
$
|
41,609
|
|
|
$
|
55,941
|
|
|
$
|
35,422
|
|
17.
|
Earnings Per Share
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands, except per share amounts)
|
||||||||||
Amounts attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|||
Income from continuing operations — basic
|
$
|
177,038
|
|
|
$
|
234,162
|
|
|
$
|
170,283
|
|
After tax interest on convertible debt
|
43
|
|
|
50
|
|
|
51
|
|
|||
Income from continuing operations — diluted
|
$
|
177,081
|
|
|
$
|
234,212
|
|
|
$
|
170,334
|
|
|
|
|
|
|
|
||||||
(Loss) income from discontinued operations, net of tax
|
$
|
—
|
|
|
$
|
(390
|
)
|
|
$
|
2,186
|
|
|
|
|
|
|
|
||||||
Net income — basic
|
$
|
177,038
|
|
|
$
|
233,772
|
|
|
$
|
172,469
|
|
After tax interest on convertible debt
|
43
|
|
|
50
|
|
|
51
|
|
|||
Net income — diluted
|
$
|
177,081
|
|
|
$
|
233,822
|
|
|
$
|
172,520
|
|
Weighted average shares:
|
|
|
|
|
|
|
|
|
|||
Weighted average shares — basic
|
193,086
|
|
|
200,356
|
|
|
210,741
|
|
|||
Stock options
|
2,823
|
|
|
3,973
|
|
|
3,338
|
|
|||
Restricted share units
|
12
|
|
|
—
|
|
|
—
|
|
|||
Convertible debt
|
121
|
|
|
121
|
|
|
121
|
|
|||
Weighted average shares — diluted
|
196,042
|
|
|
204,450
|
|
|
214,200
|
|
|||
Amounts attributable to common stockholders:
|
|
|
|
|
|
||||||
Income from continuing operations per share:
|
|
|
|
|
|
||||||
Basic
|
$
|
0.92
|
|
|
$
|
1.17
|
|
|
$
|
0.81
|
|
Diluted
|
$
|
0.90
|
|
|
$
|
1.14
|
|
|
$
|
0.80
|
|
Income from discontinued operations per share:
|
|
|
|
|
|
||||||
Basic
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.01
|
|
Diluted
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.01
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|||
Basic
|
$
|
0.92
|
|
|
$
|
1.17
|
|
|
$
|
0.82
|
|
Diluted
|
$
|
0.90
|
|
|
$
|
1.14
|
|
|
$
|
0.81
|
|
|
2016
|
|
2015
|
|
2014
|
|||
|
(In thousands)
|
|||||||
Antidilutive options
|
982
|
|
|
3
|
|
|
1,491
|
|
18.
|
Acquisitions
|
19.
|
Divestiture-Related Activities
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Gains on divestitures, net
|
$
|
7,829
|
|
|
$
|
13,363
|
|
|
$
|
122,535
|
|
Impairment losses
|
(34,648
|
)
|
|
(6,841
|
)
|
|
(5,922
|
)
|
|||
(Losses) gains on divestitures and impairment charges, net
|
$
|
(26,819
|
)
|
|
$
|
6,522
|
|
|
$
|
116,613
|
|
20.
|
Quarterly Financial Data (Unaudited)
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
||||||||
|
(In thousands, except per share amounts)
|
||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue
|
$
|
749,219
|
|
|
$
|
751,398
|
|
|
$
|
721,467
|
|
|
$
|
809,053
|
|
Costs and expenses
|
$
|
(586,296
|
)
|
|
$
|
(589,409
|
)
|
|
$
|
(580,722
|
)
|
|
$
|
(598,276
|
)
|
Gross profit
|
$
|
162,923
|
|
|
$
|
161,989
|
|
|
$
|
140,745
|
|
|
$
|
210,777
|
|
Operating income
|
$
|
123,672
|
|
|
$
|
94,498
|
|
|
$
|
114,386
|
|
|
$
|
179,329
|
|
Income from continuing operations before income taxes
(1)
|
$
|
79,767
|
|
|
$
|
32,639
|
|
|
$
|
74,963
|
|
|
$
|
139,289
|
|
Provision for income taxes
|
$
|
(32,313
|
)
|
|
$
|
(16,746
|
)
|
|
$
|
(27,422
|
)
|
|
$
|
(72,872
|
)
|
Net income
|
$
|
47,454
|
|
|
$
|
15,893
|
|
|
$
|
47,541
|
|
|
$
|
66,417
|
|
Net (income) loss attributable to noncontrolling interests
|
$
|
(9
|
)
|
|
$
|
(273
|
)
|
|
$
|
186
|
|
|
$
|
(171
|
)
|
Net income attributable to common stockholders
|
$
|
47,445
|
|
|
$
|
15,620
|
|
|
$
|
47,727
|
|
|
$
|
66,246
|
|
Net income attributable to common stockholders per share
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic — EPS
|
$
|
0.24
|
|
|
$
|
0.08
|
|
|
$
|
0.25
|
|
|
$
|
0.35
|
|
Diluted — EPS
|
$
|
0.24
|
|
|
$
|
0.08
|
|
|
$
|
0.24
|
|
|
$
|
0.34
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue
|
$
|
748,089
|
|
|
$
|
754,219
|
|
|
$
|
714,453
|
|
|
$
|
769,280
|
|
Costs and expenses
|
$
|
(569,748
|
)
|
|
$
|
(587,452
|
)
|
|
$
|
(572,774
|
)
|
|
$
|
(581,478
|
)
|
Gross profit
|
$
|
178,341
|
|
|
$
|
166,767
|
|
|
$
|
141,679
|
|
|
$
|
187,802
|
|
Operating income
|
$
|
141,115
|
|
|
$
|
127,580
|
|
|
$
|
124,548
|
|
|
$
|
157,055
|
|
Income from continuing operations before income taxes
(1)
|
$
|
98,118
|
|
|
$
|
84,489
|
|
|
$
|
74,045
|
|
|
$
|
113,699
|
|
Provision for income taxes
|
$
|
(36,653
|
)
|
|
$
|
(31,007
|
)
|
|
$
|
(26,118
|
)
|
|
$
|
(41,249
|
)
|
Net income from continuing operations
|
$
|
61,465
|
|
|
$
|
53,482
|
|
|
$
|
47,927
|
|
|
$
|
72,450
|
|
Net loss from discontinued operations, net of tax
|
$
|
—
|
|
|
$
|
(390
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Net income
|
$
|
61,465
|
|
|
$
|
53,092
|
|
|
$
|
47,927
|
|
|
$
|
72,450
|
|
Net income attributable to noncontrolling interests
|
$
|
(90
|
)
|
|
$
|
(497
|
)
|
|
$
|
(479
|
)
|
|
$
|
(96
|
)
|
Net income attributable to common stockholders
|
$
|
61,375
|
|
|
$
|
52,595
|
|
|
$
|
47,448
|
|
|
$
|
72,354
|
|
Net income attributable to common stockholders per share
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic — EPS
|
$
|
0.30
|
|
|
$
|
0.26
|
|
|
$
|
0.24
|
|
|
$
|
0.37
|
|
Diluted — EPS
|
$
|
0.30
|
|
|
$
|
0.25
|
|
|
$
|
0.23
|
|
|
$
|
0.36
|
|
(1)
|
Includes
(Losses) gains on divestitures and impairment charges, net
, as described in Note 19.
|
(2)
|
Net income per share is computed independently for each of the quarters presented. Therefore, the sum of the quarters’ net income per share may not equal the total computed for the year.
|
SERVICE CORPORATION INTERNATIONAL
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS
Three Years Ended December 31, 2016
|
||||||||||||||||||||
Description
|
|
Balance at
Beginning
of Period
|
|
Charged
(Credited) to
Costs and
Expenses
|
|
Charged
(Credited) to
Other
Accounts(1)
|
|
Write-Offs(2)
|
|
Balance at
End of
Period
|
||||||||||
|
|
(In thousands)
|
||||||||||||||||||
Current provision:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for doubtful accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year Ended December 31, 2016
|
|
$
|
5,496
|
|
|
$
|
10,776
|
|
|
$
|
66,808
|
|
|
$
|
(79,685
|
)
|
|
$
|
3,395
|
|
Year Ended December 31, 2015
|
|
$
|
8,546
|
|
|
$
|
6,083
|
|
|
$
|
63,964
|
|
|
$
|
(73,097
|
)
|
|
$
|
5,496
|
|
Year Ended December 31, 2014
|
|
$
|
11,637
|
|
|
$
|
7,376
|
|
|
$
|
55,573
|
|
|
$
|
(66,040
|
)
|
|
$
|
8,546
|
|
Due After One Year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for doubtful accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year Ended December 31, 2016
|
|
$
|
11,334
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,334
|
|
Year Ended December 31, 2015
|
|
$
|
11,259
|
|
|
$
|
—
|
|
|
$
|
75
|
|
|
$
|
—
|
|
|
$
|
11,334
|
|
Year Ended December 31, 2014
|
|
$
|
10,986
|
|
|
$
|
—
|
|
|
$
|
273
|
|
|
$
|
—
|
|
|
$
|
11,259
|
|
Preneed Funeral and Preneed Cemetery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Asset allowance for cancellation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year Ended December 31, 2016
|
|
$
|
105,773
|
|
|
$
|
1,411
|
|
|
$
|
6,216
|
|
|
$
|
(8,660
|
)
|
|
$
|
104,740
|
|
Year Ended December 31, 2015
|
|
$
|
107,040
|
|
|
$
|
5,016
|
|
|
$
|
(6,283
|
)
|
|
$
|
—
|
|
|
$
|
105,773
|
|
Year Ended December 31, 2014
|
|
$
|
106,793
|
|
|
$
|
2,950
|
|
|
$
|
(2,703
|
)
|
|
$
|
—
|
|
|
$
|
107,040
|
|
Deferred Preneed Funeral and Cemetery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenue allowance for cancellation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year Ended December 31, 2016
|
|
$
|
(121,548
|
)
|
|
$
|
—
|
|
|
$
|
4,635
|
|
|
$
|
—
|
|
|
$
|
(116,913
|
)
|
Year Ended December 31, 2015
|
|
$
|
(125,030
|
)
|
|
$
|
—
|
|
|
$
|
3,482
|
|
|
$
|
—
|
|
|
$
|
(121,548
|
)
|
Year Ended December 31, 2014
|
|
$
|
(149,288
|
)
|
|
$
|
—
|
|
|
$
|
24,258
|
|
|
$
|
—
|
|
|
$
|
(125,030
|
)
|
Deferred tax valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year Ended December 31, 2016
|
|
$
|
126,654
|
|
|
$
|
6,336
|
|
|
$
|
(490
|
)
|
|
$
|
—
|
|
|
$
|
132,500
|
|
Year Ended December 31, 2015
|
|
$
|
134,201
|
|
|
$
|
(5,988
|
)
|
|
$
|
(1,559
|
)
|
|
$
|
—
|
|
|
$
|
126,654
|
|
Year Ended December 31, 2014
|
|
$
|
114,719
|
|
|
$
|
21,285
|
|
|
$
|
(1,803
|
)
|
|
$
|
—
|
|
|
$
|
134,201
|
|
(1)
|
Primarily relates to acquisitions and dispositions of operations.
|
(2)
|
Uncollected receivables written off, net of recoveries.
|
Item 15.
|
Exhibits and Financial Statement Schedule
|
|
|
SERVICE CORPORATION INTERNATIONAL
|
|
|
|
|
By:
|
/s/ GREGORY T. SANGALIS
|
|
|
(Gregory T. Sangalis,
Senior Vice President, General
Counsel, and Secretary ) |
Signature
|
|
Title
|
|
Date
|
||
|
|
|
|
|
||
/s/ THOMAS L. RYAN*
|
|
Chairman of the Board and Chief Executive Officer (Principal Executive Officer)
|
|
February 21, 2017
|
||
(Thomas L. Ryan)
|
|
|
|
|||
|
|
|
|
|
||
/s/ ERIC D. TANZBERGER*
|
|
Senior Vice President, Chief Financial Officer(Principal Financial Officer)
|
|
February 21, 2017
|
||
(Eric D. Tanzberger)
|
|
|
|
|||
|
|
|
|
|
||
/s/ TAMMY R. MOORE*
|
|
Vice President and Corporate Controller (Principal Accounting Officer)
|
|
February 21, 2017
|
||
(Tammy R. Moore)
|
|
|
|
|||
|
|
|
|
|
||
/s/ R. L. WALTRIP*
|
|
Founder and Chairman Emeritus, Director
|
|
February 21, 2017
|
||
(R. L. Waltrip)
|
|
|
|
|||
|
|
|
|
|
||
/s/ ANTHONY L. COELHO*
|
|
Lead Director
|
|
February 21, 2017
|
||
(Anthony L. Coelho)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ ALAN R. BUCKWALTER, III*
|
|
Director
|
|
February 21, 2017
|
||
(Alan R. Buckwalter, III)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ VICTOR L. LUND*
|
|
Director
|
|
February 21, 2017
|
||
(Victor L. Lund)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ JOHN W. MECOM, JR.*
|
|
Director
|
|
February 21, 2017
|
||
(John W. Mecom, Jr.)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ CLIFTON H. MORRIS, JR.*
|
|
Director
|
|
February 21, 2017
|
||
(Clifton H. Morris, Jr.)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ ELLEN OCHOA*
|
|
Director
|
|
February 21, 2017
|
||
(Ellen Ochoa)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ W. BLAIR WALTRIP*
|
|
Director
|
|
February 21, 2017
|
||
(W. Blair Waltrip)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ MARCUS A. WATTS*
|
|
Director
|
|
February 21, 2017
|
||
(Marcus A. Watts)
|
|
|
|
|
||
|
|
|
|
|
||
/s/ EDWARD E. WILLIAMS*
|
|
Director
|
|
February 21, 2017
|
||
(Edward E. Williams)
|
|
|
|
|
||
|
|
|
|
|
||
*By
|
/s/ GREGORY T. SANGALIS
|
|
|
|
February 21, 2017
|
|
|
(Gregory T. Sangalis, as
Attorney-In-Fact for each of the Persons indicated) |
|
|
|
|
Exhibit Number
|
|
|
Description
|
||
23.1
|
|
|
—
|
|
Consent of Independent Registered Public Accounting Firm (PricewaterhouseCoopers LLP).
|
24.1
|
|
|
—
|
|
Powers of Attorney. (Incorporated by reference to Exhibit 24.1 to Form 10-K for the fiscal year ended December 31, 2016.)
|
31.1
|
|
|
—
|
|
Certification of Thomas L. Ryan as Principal Executive Officer in satisfaction of Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
|
|
—
|
|
Certification of Eric D. Tanzberger as Principal Financial Officer in satisfaction of Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
|
|
—
|
|
Certification of Periodic Financial Reports by Thomas L. Ryan as Principal Executive Officer in satisfaction of Section 906 of the Sarbanes- Oxley Act of 2002.
|
32.2
|
|
|
—
|
|
Certification of Periodic Financial Reports by Eric D. Tanzberger as Principal Financial Officer in satisfaction of Section 906 of the Sarbanes-Oxley Act of 2002.
|
101
|
|
|
—
|
|
Interactive data file.
|
1 Year Service Chart |
1 Month Service Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions