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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 | |
---|---|---|---|---|---|---|---|---|
-0.23 | -0.32% | 71.48 | 72.68 | 71.055 | 71.31 | 1,966,022 | 01:00:00 |
|
þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
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|
|
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For the quarterly period ended September 30, 2016
|
o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
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For the transition period from
__________
to
__________
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Texas
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74-1488375
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(State or other jurisdiction of incorporation or organization)
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(I. R. S. employer identification number)
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1929 Allen Parkway, Houston, Texas
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77019
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(Address of principal executive offices)
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(Zip code)
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713-522-5141
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(Registrant’s telephone number, including area code)
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||
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None
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(Former name, former address, or former fiscal year, if changed since last report)
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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|
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(Do not check if smaller reporting company)
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Page
|
|
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Three Months Ended
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Nine Months Ended
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||||||||||||
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September 30,
|
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September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
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(In thousands, except per share amounts)
|
||||||||||||||
Revenue
|
$
|
721,467
|
|
|
$
|
714,453
|
|
|
$
|
2,222,083
|
|
|
$
|
2,216,761
|
|
Costs and expenses
|
(580,722
|
)
|
|
(572,774
|
)
|
|
(1,756,425
|
)
|
|
(1,729,974
|
)
|
||||
Gross profit
|
140,745
|
|
|
141,679
|
|
|
465,658
|
|
|
486,787
|
|
||||
General and administrative expenses
|
(26,916
|
)
|
|
(27,895
|
)
|
|
(102,668
|
)
|
|
(96,947
|
)
|
||||
Gains (losses) on divestitures and impairment charges, net
|
557
|
|
|
10,764
|
|
|
(30,432
|
)
|
|
3,403
|
|
||||
Operating income
|
114,386
|
|
|
124,548
|
|
|
332,558
|
|
|
393,243
|
|
||||
Interest expense
|
(39,508
|
)
|
|
(43,921
|
)
|
|
(121,988
|
)
|
|
(129,842
|
)
|
||||
Loss on early extinguishment of debt
|
(25
|
)
|
|
(6,918
|
)
|
|
(22,503
|
)
|
|
(6,918
|
)
|
||||
Other income (expense), net
|
110
|
|
|
336
|
|
|
(697
|
)
|
|
169
|
|
||||
Income before income taxes
|
74,963
|
|
|
74,045
|
|
|
187,370
|
|
|
256,652
|
|
||||
Provision for income taxes
|
(27,422
|
)
|
|
(26,118
|
)
|
|
(76,482
|
)
|
|
(93,778
|
)
|
||||
Net income from continuing operations
|
47,541
|
|
|
47,927
|
|
|
110,888
|
|
|
162,874
|
|
||||
Net loss from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(390
|
)
|
||||
Net income
|
47,541
|
|
|
47,927
|
|
|
110,888
|
|
|
162,484
|
|
||||
Net loss (income) attributable to noncontrolling interests
|
186
|
|
|
(479
|
)
|
|
(96
|
)
|
|
(1,066
|
)
|
||||
Net income attributable to common stockholders
|
$
|
47,727
|
|
|
$
|
47,448
|
|
|
$
|
110,792
|
|
|
$
|
161,418
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common stockholders
|
$
|
0.25
|
|
|
$
|
0.24
|
|
|
$
|
0.57
|
|
|
$
|
0.80
|
|
Basic weighted average number of shares
|
193,274
|
|
|
199,310
|
|
|
193,999
|
|
|
201,729
|
|
||||
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|||||||
Net income attributable to common stockholders
|
$
|
0.24
|
|
|
$
|
0.23
|
|
|
$
|
0.56
|
|
|
$
|
0.78
|
|
Diluted weighted average number of shares
|
196,567
|
|
|
203,444
|
|
|
197,175
|
|
|
205,950
|
|
||||
Dividends declared per share
|
$
|
0.13
|
|
|
$
|
0.12
|
|
|
$
|
0.38
|
|
|
$
|
0.32
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands)
|
||||||||||||||
Net income
|
$
|
47,541
|
|
|
$
|
47,927
|
|
|
$
|
110,888
|
|
|
$
|
162,484
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
(5,018
|
)
|
|
(28,182
|
)
|
|
18,116
|
|
|
(42,941
|
)
|
||||
Total comprehensive income
|
42,523
|
|
|
19,745
|
|
|
129,004
|
|
|
119,543
|
|
||||
Total comprehensive income (loss) attributable to noncontrolling interests
|
189
|
|
|
(464
|
)
|
|
(102
|
)
|
|
(1,038
|
)
|
||||
Total comprehensive income attributable to common stockholders
|
$
|
42,712
|
|
|
$
|
19,281
|
|
|
$
|
128,902
|
|
|
$
|
118,505
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
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(In thousands, except share amounts)
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
177,571
|
|
|
$
|
134,599
|
|
Receivables, net
|
74,293
|
|
|
90,462
|
|
||
Inventories
|
28,526
|
|
|
27,835
|
|
||
Other
|
64,460
|
|
|
47,155
|
|
||
Total current assets
|
344,850
|
|
|
300,051
|
|
||
Preneed funeral receivables, net and trust investments
|
1,824,772
|
|
|
1,760,297
|
|
||
Preneed cemetery receivables, net and trust investments
|
2,466,201
|
|
|
2,318,167
|
|
||
Cemetery property
|
1,763,616
|
|
|
1,753,015
|
|
||
Property and equipment, net
|
1,834,107
|
|
|
1,846,722
|
|
||
Assets held-for-sale
|
31,946
|
|
|
214
|
|
||
Goodwill
|
1,801,893
|
|
|
1,796,340
|
|
||
Deferred charges and other assets
|
588,688
|
|
|
582,164
|
|
||
Cemetery perpetual care trust investments
|
1,395,403
|
|
|
1,319,427
|
|
||
Total assets
|
$
|
12,051,476
|
|
|
$
|
11,676,397
|
|
|
|
|
|
||||
LIABILITIES & EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable and accrued liabilities
|
$
|
447,313
|
|
|
$
|
422,816
|
|
Current maturities of long-term debt
|
89,531
|
|
|
86,823
|
|
||
Income taxes payable
|
997
|
|
|
1,373
|
|
||
Total current liabilities
|
537,841
|
|
|
511,012
|
|
||
Long-term debt
|
3,181,694
|
|
|
3,037,605
|
|
||
Deferred preneed funeral revenue
|
571,885
|
|
|
557,897
|
|
||
Deferred preneed cemetery revenue
|
1,182,104
|
|
|
1,120,001
|
|
||
Deferred tax liability
|
459,162
|
|
|
470,584
|
|
||
Other liabilities
|
507,403
|
|
|
496,947
|
|
||
Deferred preneed receipts held in trust
|
3,125,162
|
|
|
2,973,386
|
|
||
Care trusts’ corpus
|
1,396,527
|
|
|
1,319,564
|
|
||
Commitments and contingencies (Note 14)
|
|
|
|
|
|
||
Equity:
|
|
|
|
||||
Common stock, $1 per share par value, 500,000,000 shares authorized, 203,119,918 and 200,859,676 shares issued, respectively, and 190,489,048 and 195,772,876 shares outstanding, respectively
|
190,489
|
|
|
195,773
|
|
||
Capital in excess of par value
|
1,015,271
|
|
|
1,092,106
|
|
||
Accumulated deficit
|
(142,742
|
)
|
|
(109,351
|
)
|
||
Accumulated other comprehensive income
|
24,274
|
|
|
6,164
|
|
||
Total common stockholders’ equity
|
1,087,292
|
|
|
1,184,692
|
|
||
Noncontrolling interests
|
2,406
|
|
|
4,709
|
|
||
Total equity
|
1,089,698
|
|
|
1,189,401
|
|
||
Total liabilities and equity
|
$
|
12,051,476
|
|
|
$
|
11,676,397
|
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
110,888
|
|
|
$
|
162,484
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Net loss from discontinued operations, net of tax
|
—
|
|
|
390
|
|
||
Loss on early extinguishment of debt
|
22,503
|
|
|
6,918
|
|
||
Premiums paid on early extinguishment of debt
|
(20,524
|
)
|
|
(6,549
|
)
|
||
Depreciation and amortization
|
109,531
|
|
|
103,816
|
|
||
Amortization of intangible assets
|
22,210
|
|
|
23,536
|
|
||
Amortization of cemetery property
|
42,573
|
|
|
40,422
|
|
||
Amortization of loan costs
|
4,406
|
|
|
7,221
|
|
||
Provision for doubtful accounts
|
4,048
|
|
|
4,663
|
|
||
(Benefit) provision for deferred income taxes
|
(11,421
|
)
|
|
13,761
|
|
||
Loss (gain) on divestitures and impairment charges, net
|
30,432
|
|
|
(3,403
|
)
|
||
Share-based compensation
|
10,199
|
|
|
10,717
|
|
||
Excess tax benefits from share-based awards
|
(11,512
|
)
|
|
(17,266
|
)
|
||
Change in assets and liabilities, net of effects from acquisitions and divestitures:
|
|
|
|
||||
Decrease in receivables
|
11,447
|
|
|
11,724
|
|
||
Increase in other assets
|
(7,660
|
)
|
|
(627
|
)
|
||
Increase in payables and other liabilities
|
37,565
|
|
|
39,546
|
|
||
Effect of preneed funeral production and maturities:
|
|
|
|
||||
Decrease in preneed funeral receivables, net and trust investments
|
11,167
|
|
|
20,846
|
|
||
Increase deferred preneed funeral revenue
|
10,122
|
|
|
9,922
|
|
||
Decrease in deferred preneed funeral receipts held in trust
|
(31,790
|
)
|
|
(47,365
|
)
|
||
Effect of cemetery production and deliveries:
|
|
|
|
||||
Increase in preneed cemetery receivables, net and trust investments
|
(60,004
|
)
|
|
(55,777
|
)
|
||
Increase in deferred preneed cemetery revenue
|
57,855
|
|
|
70,995
|
|
||
Increase in deferred preneed cemetery receipts held in trust
|
16,475
|
|
|
644
|
|
||
Net cash provided by operating activities
|
358,510
|
|
|
396,618
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(131,195
|
)
|
|
(104,732
|
)
|
||
Acquisitions
|
(66,109
|
)
|
|
(41,430
|
)
|
||
Proceeds from divestitures and sales of property and equipment
|
13,044
|
|
|
11,329
|
|
||
Net withdrawals of restricted funds
|
5,120
|
|
|
8,066
|
|
||
Net cash used in investing activities from continuing operations
|
(179,140
|
)
|
|
(126,767
|
)
|
||
Net cash provided by investing activities from discontinued operations
|
—
|
|
|
987
|
|
||
Net cash used in investing activities
|
(179,140
|
)
|
|
(125,780
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from issuance of long-term debt
|
1,035,000
|
|
|
401,250
|
|
||
Debt issuance costs
|
(5,232
|
)
|
|
(5,830
|
)
|
||
Payments of debt
|
(27,632
|
)
|
|
(145,171
|
)
|
||
Early extinguishment of debt
|
(875,110
|
)
|
|
(197,377
|
)
|
||
Principal payments on capital leases
|
(25,220
|
)
|
|
(20,421
|
)
|
||
Proceeds from exercise of stock options
|
16,029
|
|
|
30,491
|
|
||
Excess tax benefits from share-based awards
|
11,512
|
|
|
17,266
|
|
||
Purchase of Company common stock
|
(192,991
|
)
|
|
(305,488
|
)
|
||
Payments of dividends
|
(73,665
|
)
|
|
(64,068
|
)
|
||
Purchase of noncontrolling interest
|
(1,961
|
)
|
|
—
|
|
||
Bank overdrafts and other
|
(1,066
|
)
|
|
(9,095
|
)
|
||
Net cash used in financing activities
|
(140,336
|
)
|
|
(298,443
|
)
|
||
Effect of foreign currency on cash and cash equivalents
|
3,938
|
|
|
(7,780
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
42,972
|
|
|
(35,385
|
)
|
||
Cash and cash equivalents at beginning of period
|
134,599
|
|
|
177,335
|
|
||
Cash and cash equivalents at end of period
|
$
|
177,571
|
|
|
$
|
141,950
|
|
|
Common
Stock
|
|
Treasury Stock
|
|
Capital in
Excess of
Par Value
|
|
Accumulated
Deficit
|
|
Accumulated
Other
Comprehensive
Income
|
|
Noncontrolling
Interests
|
|
Total
|
||||||||||||||
Balance at December 31, 2015
|
$
|
200,859
|
|
|
$
|
(5,086
|
)
|
|
$
|
1,092,106
|
|
|
$
|
(109,351
|
)
|
|
$
|
6,164
|
|
|
$
|
4,709
|
|
|
$
|
1,189,401
|
|
Comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
110,792
|
|
|
18,110
|
|
|
102
|
|
|
129,004
|
|
|||||||
Dividends declared on common stock ($0.38 per share)
|
—
|
|
|
—
|
|
|
(73,665
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(73,665
|
)
|
|||||||
Employee share-based compensation earned
|
—
|
|
|
—
|
|
|
10,199
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,199
|
|
|||||||
Stock option exercises
|
1,924
|
|
|
—
|
|
|
14,105
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,029
|
|
|||||||
Restricted stock awards, net of forfeitures
|
242
|
|
|
(1
|
)
|
|
(241
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Purchase of Company common stock
|
—
|
|
|
(7,544
|
)
|
|
(41,264
|
)
|
|
(144,183
|
)
|
|
—
|
|
|
—
|
|
|
(192,991
|
)
|
|||||||
Tax benefits related to share-based awards
|
—
|
|
|
—
|
|
|
11,512
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,512
|
|
|||||||
Noncontrolling interest purchases
|
—
|
|
|
—
|
|
|
364
|
|
|
—
|
|
|
—
|
|
|
(2,325
|
)
|
|
(1,961
|
)
|
|||||||
Other
|
95
|
|
|
—
|
|
|
2,155
|
|
|
—
|
|
|
—
|
|
|
(80
|
)
|
|
2,170
|
|
|||||||
Balance at September 30, 2016
|
$
|
203,120
|
|
|
$
|
(12,631
|
)
|
|
$
|
1,015,271
|
|
|
$
|
(142,742
|
)
|
|
$
|
24,274
|
|
|
$
|
2,406
|
|
|
$
|
1,089,698
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands)
|
||||||||||||||
Deposits
|
$
|
30,611
|
|
|
$
|
30,143
|
|
|
$
|
91,828
|
|
|
$
|
92,623
|
|
Withdrawals
|
$
|
45,120
|
|
|
$
|
36,310
|
|
|
$
|
118,250
|
|
|
$
|
123,499
|
|
Purchases of available-for-sale securities
|
$
|
82,369
|
|
|
$
|
100,663
|
|
|
$
|
263,905
|
|
|
$
|
281,298
|
|
Sales of available-for-sale securities
|
$
|
93,387
|
|
|
$
|
110,642
|
|
|
$
|
269,641
|
|
|
$
|
282,960
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
|
(In thousands)
|
||||||
Trust investments, at market
|
$
|
1,176,086
|
|
|
$
|
1,109,394
|
|
Cash and cash equivalents
|
112,662
|
|
|
134,642
|
|
||
Assets associated with business held for sale
|
(872
|
)
|
|
(39
|
)
|
||
Insurance-backed fixed income securities
|
272,088
|
|
|
271,116
|
|
||
Trust investments
|
1,559,964
|
|
|
1,515,113
|
|
||
Receivables from customers
|
314,185
|
|
|
290,689
|
|
||
Unearned finance charge
|
(12,893
|
)
|
|
(11,235
|
)
|
||
|
1,861,256
|
|
|
1,794,567
|
|
||
Allowance for cancellation
|
(36,484
|
)
|
|
(34,270
|
)
|
||
Preneed funeral receivables, net and trust investments
|
$
|
1,824,772
|
|
|
$
|
1,760,297
|
|
|
September 30, 2016
|
||||||||||||||||
|
Value Hierarchy Level
|
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Value
|
||||||||
|
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
2
|
|
$
|
78,289
|
|
|
$
|
1,108
|
|
|
$
|
(102
|
)
|
|
$
|
79,295
|
|
Canadian government
|
2
|
|
77,016
|
|
|
487
|
|
|
(363
|
)
|
|
77,140
|
|
||||
Corporate
|
2
|
|
13,603
|
|
|
263
|
|
|
(54
|
)
|
|
13,812
|
|
||||
Residential mortgage-backed
|
2
|
|
29
|
|
|
1
|
|
|
—
|
|
|
30
|
|
||||
Asset-backed
|
2
|
|
58
|
|
|
—
|
|
|
—
|
|
|
58
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||
Preferred stock
|
2
|
|
1,436
|
|
|
116
|
|
|
(109
|
)
|
|
1,443
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
||||||||
United States
|
1
|
|
339,717
|
|
|
47,031
|
|
|
(13,043
|
)
|
|
373,705
|
|
||||
Canada
|
1
|
|
12,028
|
|
|
3,460
|
|
|
(633
|
)
|
|
14,855
|
|
||||
Other international
|
1
|
|
27,457
|
|
|
2,688
|
|
|
(2,608
|
)
|
|
27,537
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
||||||||
Equity
|
1
|
|
321,562
|
|
|
11,257
|
|
|
(21,066
|
)
|
|
311,753
|
|
||||
Fixed income
|
1
|
|
99,951
|
|
|
2,292
|
|
|
(7,372
|
)
|
|
94,871
|
|
||||
Other
|
3
|
|
4,257
|
|
|
1,234
|
|
|
(10
|
)
|
|
5,481
|
|
||||
Trust investments, at fair value
|
|
|
975,403
|
|
|
69,937
|
|
|
(45,360
|
)
|
|
999,980
|
|
||||
Fixed income commingled funds
|
|
|
134,394
|
|
|
7,066
|
|
|
—
|
|
|
141,460
|
|
||||
Private equity
|
|
|
35,881
|
|
|
3,041
|
|
|
(4,276
|
)
|
|
34,646
|
|
||||
Trust investments, at net asset value
|
|
|
170,275
|
|
|
10,107
|
|
|
(4,276
|
)
|
|
176,106
|
|
||||
Trust investments, at market
|
|
|
$
|
1,145,678
|
|
|
$
|
80,044
|
|
|
$
|
(49,636
|
)
|
|
$
|
1,176,086
|
|
|
December 31, 2015
|
||||||||||||||||
|
Value Hierarchy Level
|
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Value
|
||||||||
|
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
2
|
|
$
|
82,417
|
|
|
$
|
107
|
|
|
$
|
(1,331
|
)
|
|
$
|
81,193
|
|
Canadian government
|
2
|
|
72,488
|
|
|
532
|
|
|
(655
|
)
|
|
72,365
|
|
||||
Corporate
|
2
|
|
19,036
|
|
|
235
|
|
|
(284
|
)
|
|
18,987
|
|
||||
Residential mortgage-backed
|
2
|
|
1,297
|
|
|
29
|
|
|
(22
|
)
|
|
1,304
|
|
||||
Asset-backed
|
2
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||
Preferred stock
|
2
|
|
1,949
|
|
|
41
|
|
|
(158
|
)
|
|
1,832
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
||||||||
United States
|
1
|
|
344,116
|
|
|
30,885
|
|
|
(19,149
|
)
|
|
355,852
|
|
||||
Canada
|
1
|
|
11,930
|
|
|
2,652
|
|
|
(1,077
|
)
|
|
13,505
|
|
||||
Other international
|
1
|
|
32,156
|
|
|
2,636
|
|
|
(3,907
|
)
|
|
30,885
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
||||||||
Equity
|
1
|
|
323,884
|
|
|
1,263
|
|
|
(43,975
|
)
|
|
281,172
|
|
||||
Fixed income
|
1
|
|
155,717
|
|
|
154
|
|
|
(13,092
|
)
|
|
142,779
|
|
||||
Other
|
3
|
|
3,703
|
|
|
1,069
|
|
|
—
|
|
|
4,772
|
|
||||
Trust investments, at fair value
|
|
|
1,048,698
|
|
|
39,603
|
|
|
(83,650
|
)
|
|
1,004,651
|
|
||||
Fixed income commingled funds
|
|
|
69,148
|
|
|
—
|
|
|
(442
|
)
|
|
68,706
|
|
||||
Private equity
|
|
|
38,724
|
|
|
3,780
|
|
|
(6,467
|
)
|
|
36,037
|
|
||||
Trust investments, at net asset value
|
|
|
107,872
|
|
|
3,780
|
|
|
(6,909
|
)
|
|
104,743
|
|
||||
Trust investments, at market
|
|
|
$
|
1,156,570
|
|
|
$
|
43,383
|
|
|
$
|
(90,559
|
)
|
|
$
|
1,109,394
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
(In thousands)
|
|
|
||||||||||
Fair value, beginning balance
|
$
|
5,353
|
|
|
$
|
5,081
|
|
|
$
|
4,772
|
|
|
$
|
4,891
|
|
Net unrealized gains (losses) included in
Accumulated other comprehensive income
(1)
|
106
|
|
|
(376
|
)
|
|
680
|
|
|
(209
|
)
|
||||
Purchases
|
36
|
|
|
—
|
|
|
61
|
|
|
22
|
|
||||
Sales
|
(14
|
)
|
|
(1
|
)
|
|
(32
|
)
|
|
—
|
|
||||
Fair value, ending balance
|
$
|
5,481
|
|
|
$
|
4,704
|
|
|
$
|
5,481
|
|
|
$
|
4,704
|
|
(1)
|
All unrealized gains (losses) recognized in
Accumulated other comprehensive income
for our 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
|
$
|
106,871
|
|
Due in one to five years
|
22,777
|
|
|
Due in five to ten years
|
32,538
|
|
|
Thereafter
|
8,149
|
|
|
|
$
|
170,335
|
|
|
September 30, 2016
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Value
|
|
Unrealized
Losses
|
|
Value
|
|
Unrealized
Losses
|
|
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury
|
$
|
7,926
|
|
|
$
|
(45
|
)
|
|
$
|
4,366
|
|
|
$
|
(57
|
)
|
|
$
|
12,292
|
|
|
$
|
(102
|
)
|
Canadian government
|
2,989
|
|
|
(107
|
)
|
|
13,170
|
|
|
(256
|
)
|
|
16,159
|
|
|
(363
|
)
|
||||||
Corporate
|
1,743
|
|
|
(18
|
)
|
|
3,073
|
|
|
(36
|
)
|
|
4,816
|
|
|
(54
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Preferred stock
|
—
|
|
|
—
|
|
|
150
|
|
|
(109
|
)
|
|
150
|
|
|
(109
|
)
|
||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
77,947
|
|
|
(9,198
|
)
|
|
25,271
|
|
|
(3,845
|
)
|
|
103,218
|
|
|
(13,043
|
)
|
||||||
Canada
|
—
|
|
|
—
|
|
|
3,211
|
|
|
(633
|
)
|
|
3,211
|
|
|
(633
|
)
|
||||||
Other international
|
6,419
|
|
|
(989
|
)
|
|
6,259
|
|
|
(1,619
|
)
|
|
12,678
|
|
|
(2,608
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity
|
22,807
|
|
|
(1,207
|
)
|
|
147,218
|
|
|
(19,859
|
)
|
|
170,025
|
|
|
(21,066
|
)
|
||||||
Fixed income
|
9,105
|
|
|
(342
|
)
|
|
32,980
|
|
|
(7,030
|
)
|
|
42,085
|
|
|
(7,372
|
)
|
||||||
Other
|
27
|
|
|
(2
|
)
|
|
1,161
|
|
|
(8
|
)
|
|
1,188
|
|
|
(10
|
)
|
||||||
Trust investments, at fair value
|
128,963
|
|
|
(11,908
|
)
|
|
236,859
|
|
|
(33,452
|
)
|
|
365,822
|
|
|
(45,360
|
)
|
||||||
Private equity
|
873
|
|
|
(459
|
)
|
|
19,368
|
|
|
(3,817
|
)
|
|
20,241
|
|
|
(4,276
|
)
|
||||||
Trust investments, at net asset value
|
873
|
|
|
(459
|
)
|
|
19,368
|
|
|
(3,817
|
)
|
|
20,241
|
|
|
(4,276
|
)
|
||||||
Total temporarily impaired securities
|
$
|
129,836
|
|
|
$
|
(12,367
|
)
|
|
$
|
256,227
|
|
|
$
|
(37,269
|
)
|
|
$
|
386,063
|
|
|
$
|
(49,636
|
)
|
|
December 31, 2015
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Value
|
|
Unrealized
Losses
|
|
Value
|
|
Unrealized
Losses
|
|
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury
|
$
|
37,008
|
|
|
$
|
(1,273
|
)
|
|
$
|
4,687
|
|
|
$
|
(58
|
)
|
|
$
|
41,695
|
|
|
$
|
(1,331
|
)
|
Canadian government
|
2,336
|
|
|
(17
|
)
|
|
11,535
|
|
|
(638
|
)
|
|
13,871
|
|
|
(655
|
)
|
||||||
Corporate
|
4,644
|
|
|
(156
|
)
|
|
4,025
|
|
|
(128
|
)
|
|
8,669
|
|
|
(284
|
)
|
||||||
Residential mortgage-backed
|
377
|
|
|
(6
|
)
|
|
133
|
|
|
(16
|
)
|
|
510
|
|
|
(22
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Preferred stock
|
448
|
|
|
(60
|
)
|
|
42
|
|
|
(98
|
)
|
|
490
|
|
|
(158
|
)
|
||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
128,725
|
|
|
(16,448
|
)
|
|
14,531
|
|
|
(2,701
|
)
|
|
143,256
|
|
|
(19,149
|
)
|
||||||
Canada
|
1,956
|
|
|
(355
|
)
|
|
1,097
|
|
|
(722
|
)
|
|
3,053
|
|
|
(1,077
|
)
|
||||||
Other international
|
9,458
|
|
|
(1,638
|
)
|
|
6,151
|
|
|
(2,269
|
)
|
|
15,609
|
|
|
(3,907
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity
|
185,726
|
|
|
(23,385
|
)
|
|
79,855
|
|
|
(20,590
|
)
|
|
265,581
|
|
|
(43,975
|
)
|
||||||
Fixed income
|
108,984
|
|
|
(5,052
|
)
|
|
27,048
|
|
|
(8,040
|
)
|
|
136,032
|
|
|
(13,092
|
)
|
||||||
Trust investments, at fair value
|
479,662
|
|
|
(48,390
|
)
|
|
149,104
|
|
|
(35,260
|
)
|
|
628,766
|
|
|
(83,650
|
)
|
||||||
Fixed income commingled funds
|
68,578
|
|
|
(442
|
)
|
|
—
|
|
|
—
|
|
|
68,578
|
|
|
(442
|
)
|
||||||
Private equity
|
—
|
|
|
—
|
|
|
18,713
|
|
|
(6,467
|
)
|
|
18,713
|
|
|
(6,467
|
)
|
||||||
Trust investments, at net asset value
|
68,578
|
|
|
(442
|
)
|
|
18,713
|
|
|
(6,467
|
)
|
|
87,291
|
|
|
(6,909
|
)
|
||||||
Total temporarily impaired securities
|
$
|
548,240
|
|
|
$
|
(48,832
|
)
|
|
$
|
167,817
|
|
|
$
|
(41,727
|
)
|
|
$
|
716,057
|
|
|
$
|
(90,559
|
)
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands)
|
||||||||||||||
Deposits
|
$
|
41,133
|
|
|
$
|
40,327
|
|
|
$
|
120,398
|
|
|
$
|
116,581
|
|
Withdrawals
|
$
|
39,108
|
|
|
$
|
33,260
|
|
|
$
|
105,471
|
|
|
$
|
115,930
|
|
Purchases of available-for-sale securities
|
$
|
119,699
|
|
|
$
|
165,025
|
|
|
$
|
490,752
|
|
|
$
|
389,219
|
|
Sales of available-for-sale securities
|
$
|
123,063
|
|
|
$
|
150,804
|
|
|
$
|
471,162
|
|
|
$
|
389,747
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
|
(In thousands)
|
||||||
Trust investments, at market
|
$
|
1,449,883
|
|
|
$
|
1,343,916
|
|
Cash and cash equivalents
|
115,922
|
|
|
118,583
|
|
||
Trust investments
|
1,565,805
|
|
|
1,462,499
|
|
||
Receivables from customers
|
1,009,525
|
|
|
958,503
|
|
||
Unearned finance charges
|
(34,460
|
)
|
|
(31,332
|
)
|
||
|
2,540,870
|
|
|
2,389,670
|
|
||
Allowance for cancellation
|
(74,669
|
)
|
|
(71,503
|
)
|
||
Preneed cemetery receivables, net and trust investments
|
$
|
2,466,201
|
|
|
$
|
2,318,167
|
|
|
September 30, 2016
|
||||||||||||||||
|
Value Hierarchy Level
|
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Value
|
||||||||
|
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
2
|
|
$
|
69,841
|
|
|
$
|
2,301
|
|
|
$
|
—
|
|
|
$
|
72,142
|
|
Canadian government
|
2
|
|
33,751
|
|
|
511
|
|
|
(54
|
)
|
|
34,208
|
|
||||
Corporate
|
2
|
|
2,547
|
|
|
20
|
|
|
(40
|
)
|
|
2,527
|
|
||||
Asset-backed
|
2
|
|
170
|
|
|
21
|
|
|
—
|
|
|
191
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
||||||||
United States
|
1
|
|
540,836
|
|
|
72,329
|
|
|
(22,978
|
)
|
|
590,187
|
|
||||
Canada
|
1
|
|
8,662
|
|
|
4,800
|
|
|
(145
|
)
|
|
13,317
|
|
||||
Other international
|
1
|
|
44,166
|
|
|
4,443
|
|
|
(4,128
|
)
|
|
44,481
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
||||||||
Equity
|
1
|
|
353,122
|
|
|
12,682
|
|
|
(21,193
|
)
|
|
344,611
|
|
||||
Fixed income
|
1
|
|
97,339
|
|
|
2,107
|
|
|
(10,677
|
)
|
|
88,769
|
|
||||
Other
|
3
|
|
160
|
|
|
—
|
|
|
(126
|
)
|
|
34
|
|
||||
Trust investments, at fair value
|
|
|
1,150,594
|
|
|
99,214
|
|
|
(59,341
|
)
|
|
1,190,467
|
|
||||
Fixed income commingled funds
|
|
|
214,718
|
|
|
10,084
|
|
|
—
|
|
|
224,802
|
|
||||
Private equity
|
|
|
32,074
|
|
|
4,622
|
|
|
(2,082
|
)
|
|
34,614
|
|
||||
Trust investments, at net asset value
|
|
|
246,792
|
|
|
14,706
|
|
|
(2,082
|
)
|
|
259,416
|
|
||||
Trust investments, at market
|
|
|
$
|
1,397,386
|
|
|
$
|
113,920
|
|
|
$
|
(61,423
|
)
|
|
$
|
1,449,883
|
|
|
December 31, 2015
|
||||||||||||||||
|
Value Hierarchy Level
|
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Value
|
||||||||
|
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
2
|
|
$
|
69,746
|
|
|
$
|
25
|
|
|
$
|
(1,437
|
)
|
|
$
|
68,334
|
|
Canadian government
|
2
|
|
24,648
|
|
|
183
|
|
|
(169
|
)
|
|
24,662
|
|
||||
Corporate
|
2
|
|
5,112
|
|
|
26
|
|
|
(118
|
)
|
|
5,020
|
|
||||
Residential mortgage-backed
|
2
|
|
129
|
|
|
3
|
|
|
(3
|
)
|
|
129
|
|
||||
Asset-backed
|
2
|
|
170
|
|
|
15
|
|
|
—
|
|
|
185
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
||||||||
United States
|
1
|
|
532,026
|
|
|
44,181
|
|
|
(32,037
|
)
|
|
544,170
|
|
||||
Canada
|
1
|
|
8,984
|
|
|
3,858
|
|
|
(891
|
)
|
|
11,951
|
|
||||
Other international
|
1
|
|
50,053
|
|
|
4,207
|
|
|
(5,799
|
)
|
|
48,461
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
||||||||
Equity
|
1
|
|
356,798
|
|
|
1,620
|
|
|
(49,642
|
)
|
|
308,776
|
|
||||
Fixed income
|
1
|
|
203,983
|
|
|
92
|
|
|
(18,526
|
)
|
|
185,549
|
|
||||
Other
|
3
|
|
1,381
|
|
|
122
|
|
|
—
|
|
|
1,503
|
|
||||
Trust investments, at fair value
|
|
|
1,253,030
|
|
|
54,332
|
|
|
(108,622
|
)
|
|
1,198,740
|
|
||||
Fixed income commingled funds
|
|
|
108,883
|
|
|
—
|
|
|
(570
|
)
|
|
108,313
|
|
||||
Private equity
|
|
|
35,411
|
|
|
5,954
|
|
|
(4,502
|
)
|
|
36,863
|
|
||||
Trust investments, at net asset value
|
|
|
144,294
|
|
|
5,954
|
|
|
(5,072
|
)
|
|
145,176
|
|
||||
Trust investments, at market
|
|
|
$
|
1,397,324
|
|
|
$
|
60,286
|
|
|
$
|
(113,694
|
)
|
|
$
|
1,343,916
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
(In thousands)
|
|
|
||||||||||
Fair value, beginning balance
|
$
|
1,319
|
|
|
$
|
1,576
|
|
|
$
|
1,503
|
|
|
$
|
203
|
|
Net unrealized gains (losses) included in
Accumulated other comprehensive income
(1)
|
10
|
|
|
(83
|
)
|
|
(174
|
)
|
|
(84
|
)
|
||||
Purchases
|
—
|
|
|
—
|
|
|
—
|
|
|
1,348
|
|
||||
Sales
|
(1,295
|
)
|
|
(26
|
)
|
|
(1,295
|
)
|
|
—
|
|
||||
Fair value, ending balance
|
$
|
34
|
|
|
$
|
1,467
|
|
|
$
|
34
|
|
|
$
|
1,467
|
|
(1)
|
All unrealized gains (losses) recognized in
Accumulated other comprehensive income
for our 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
|
$
|
32,187
|
|
Due in one to five years
|
26,897
|
|
|
Due in five to ten years
|
35,498
|
|
|
Thereafter
|
14,486
|
|
|
|
$
|
109,068
|
|
|
September 30, 2016
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Value
|
|
Unrealized
Losses
|
|
Value
|
|
Unrealized
Losses
|
|
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Canadian government
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
1,259
|
|
|
$
|
(54
|
)
|
|
$
|
1,265
|
|
|
$
|
(54
|
)
|
Corporate
|
866
|
|
|
(11
|
)
|
|
776
|
|
|
(29
|
)
|
|
1,642
|
|
|
(40
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
130,167
|
|
|
(14,779
|
)
|
|
40,411
|
|
|
(8,199
|
)
|
|
170,578
|
|
|
(22,978
|
)
|
||||||
Canada
|
—
|
|
|
—
|
|
|
747
|
|
|
(145
|
)
|
|
747
|
|
|
(145
|
)
|
||||||
Other international
|
12,357
|
|
|
(1,839
|
)
|
|
8,629
|
|
|
(2,289
|
)
|
|
20,986
|
|
|
(4,128
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity
|
10,414
|
|
|
(452
|
)
|
|
165,722
|
|
|
(20,741
|
)
|
|
176,136
|
|
|
(21,193
|
)
|
||||||
Fixed income
|
12,430
|
|
|
(171
|
)
|
|
44,609
|
|
|
(10,506
|
)
|
|
57,039
|
|
|
(10,677
|
)
|
||||||
Other
|
34
|
|
|
(126
|
)
|
|
—
|
|
|
—
|
|
|
34
|
|
|
(126
|
)
|
||||||
Trust investments, at fair value
|
166,274
|
|
|
(17,378
|
)
|
|
262,153
|
|
|
(41,963
|
)
|
|
428,427
|
|
|
(59,341
|
)
|
||||||
Private equity
|
36
|
|
|
(1
|
)
|
|
13,466
|
|
|
(2,081
|
)
|
|
13,502
|
|
|
(2,082
|
)
|
||||||
Trust investments, at net asset value
|
36
|
|
|
(1
|
)
|
|
13,466
|
|
|
(2,081
|
)
|
|
13,502
|
|
|
(2,082
|
)
|
||||||
Total temporarily impaired securities
|
$
|
166,310
|
|
|
$
|
(17,379
|
)
|
|
$
|
275,619
|
|
|
$
|
(44,044
|
)
|
|
$
|
441,929
|
|
|
$
|
(61,423
|
)
|
|
December 31, 2015
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Value
|
|
Unrealized
Losses
|
|
Value
|
|
Unrealized
Losses
|
|
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury
|
$
|
52,533
|
|
|
$
|
(1,435
|
)
|
|
$
|
21
|
|
|
$
|
(2
|
)
|
|
$
|
52,554
|
|
|
$
|
(1,437
|
)
|
Canadian government
|
16,039
|
|
|
(105
|
)
|
|
841
|
|
|
(64
|
)
|
|
16,880
|
|
|
(169
|
)
|
||||||
Corporate
|
1,754
|
|
|
(22
|
)
|
|
2,347
|
|
|
(96
|
)
|
|
4,101
|
|
|
(118
|
)
|
||||||
Residential mortgage-backed
|
42
|
|
|
(1
|
)
|
|
18
|
|
|
(2
|
)
|
|
60
|
|
|
(3
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
198,843
|
|
|
(26,038
|
)
|
|
21,355
|
|
|
(5,999
|
)
|
|
220,198
|
|
|
(32,037
|
)
|
||||||
Canada
|
470
|
|
|
(6
|
)
|
|
1,430
|
|
|
(885
|
)
|
|
1,900
|
|
|
(891
|
)
|
||||||
Other international
|
15,567
|
|
|
(2,507
|
)
|
|
9,412
|
|
|
(3,292
|
)
|
|
24,979
|
|
|
(5,799
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity
|
207,349
|
|
|
(25,991
|
)
|
|
86,720
|
|
|
(23,651
|
)
|
|
294,069
|
|
|
(49,642
|
)
|
||||||
Fixed income
|
139,749
|
|
|
(6,322
|
)
|
|
44,550
|
|
|
(12,204
|
)
|
|
184,299
|
|
|
(18,526
|
)
|
||||||
Trust investments, at fair value
|
632,346
|
|
|
(62,427
|
)
|
|
166,694
|
|
|
(46,195
|
)
|
|
799,040
|
|
|
(108,622
|
)
|
||||||
Fixed income commingled funds
|
108,347
|
|
|
(570
|
)
|
|
—
|
|
|
—
|
|
|
108,347
|
|
|
(570
|
)
|
||||||
Private equity
|
—
|
|
|
—
|
|
|
9,526
|
|
|
(4,502
|
)
|
|
9,526
|
|
|
(4,502
|
)
|
||||||
Trust investments, at net asset value
|
108,347
|
|
|
(570
|
)
|
|
9,526
|
|
|
(4,502
|
)
|
|
117,873
|
|
|
(5,072
|
)
|
||||||
Total temporarily impaired securities
|
$
|
740,693
|
|
|
$
|
(62,997
|
)
|
|
$
|
176,220
|
|
|
$
|
(50,697
|
)
|
|
$
|
916,913
|
|
|
$
|
(113,694
|
)
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands)
|
||||||||||||||
Deposits
|
$
|
10,542
|
|
|
$
|
10,264
|
|
|
$
|
31,731
|
|
|
$
|
29,717
|
|
Withdrawals
|
$
|
5,928
|
|
|
$
|
8,073
|
|
|
$
|
36,478
|
|
|
$
|
32,749
|
|
Purchases of available-for-sale securities
|
$
|
298,509
|
|
|
$
|
29,129
|
|
|
$
|
388,216
|
|
|
$
|
174,243
|
|
Sales of available-for-sale securities
|
$
|
274,495
|
|
|
$
|
14,466
|
|
|
$
|
352,109
|
|
|
$
|
120,602
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
|
(In thousands)
|
||||||
Trust investments, at market
|
$
|
1,341,129
|
|
|
$
|
1,232,592
|
|
Cash and cash equivalents
|
54,274
|
|
|
86,835
|
|
||
Cemetery perpetual care trust investments
|
$
|
1,395,403
|
|
|
$
|
1,319,427
|
|
|
September 30, 2016
|
||||||||||||||||
|
Value Hierarchy Level
|
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Value
|
||||||||
|
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
2
|
|
$
|
2,983
|
|
|
$
|
—
|
|
|
$
|
(30
|
)
|
|
$
|
2,953
|
|
Canadian government
|
2
|
|
37,001
|
|
|
611
|
|
|
(95
|
)
|
|
37,517
|
|
||||
Corporate
|
2
|
|
6,388
|
|
|
128
|
|
|
(124
|
)
|
|
6,392
|
|
||||
Residential mortgage-backed
|
2
|
|
352
|
|
|
1
|
|
|
—
|
|
|
353
|
|
||||
Asset-backed
|
2
|
|
255
|
|
|
6
|
|
|
(18
|
)
|
|
243
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||
Preferred stock
|
2
|
|
1,523
|
|
|
35
|
|
|
(78
|
)
|
|
1,480
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
||||||||
United States
|
1
|
|
233,177
|
|
|
20,035
|
|
|
(7,311
|
)
|
|
245,901
|
|
||||
Canada
|
1
|
|
4,856
|
|
|
2,654
|
|
|
(172
|
)
|
|
7,338
|
|
||||
Other international
|
1
|
|
14,733
|
|
|
180
|
|
|
(1,402
|
)
|
|
13,511
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
||||||||
Equity
|
1
|
|
20,125
|
|
|
4,244
|
|
|
(1,504
|
)
|
|
22,865
|
|
||||
Fixed income
|
1
|
|
683,595
|
|
|
10,815
|
|
|
(26,624
|
)
|
|
667,786
|
|
||||
Other
|
3
|
|
631
|
|
|
1,253
|
|
|
(2
|
)
|
|
1,882
|
|
||||
Trust investments, at fair value
|
|
|
1,005,619
|
|
|
39,962
|
|
|
(37,360
|
)
|
|
1,008,221
|
|
||||
Fixed income commingled funds
|
|
|
245,295
|
|
|
—
|
|
|
(1,153
|
)
|
|
244,142
|
|
||||
Private equity
|
|
|
92,273
|
|
|
2,565
|
|
|
(6,072
|
)
|
|
88,766
|
|
||||
Trust investments, at net asset value
|
|
|
337,568
|
|
|
2,565
|
|
|
(7,225
|
)
|
|
332,908
|
|
||||
Trust investments, at market
|
|
|
$
|
1,343,187
|
|
|
$
|
42,527
|
|
|
$
|
(44,585
|
)
|
|
$
|
1,341,129
|
|
|
December 31, 2015
|
||||||||||||||||
|
Value Hierarchy Level
|
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Value
|
||||||||
|
|
|
|
|
(In thousands)
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
2
|
|
$
|
3,636
|
|
|
$
|
20
|
|
|
$
|
(81
|
)
|
|
$
|
3,575
|
|
Canadian government
|
2
|
|
32,477
|
|
|
321
|
|
|
(266
|
)
|
|
32,532
|
|
||||
Corporate
|
2
|
|
12,694
|
|
|
149
|
|
|
(284
|
)
|
|
12,559
|
|
||||
Residential mortgage-backed
|
2
|
|
934
|
|
|
13
|
|
|
(9
|
)
|
|
938
|
|
||||
Asset-backed
|
2
|
|
660
|
|
|
5
|
|
|
(31
|
)
|
|
634
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||
Preferred stock
|
2
|
|
5,850
|
|
|
55
|
|
|
(159
|
)
|
|
5,746
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|||||||
United States
|
1
|
|
231,012
|
|
|
15,224
|
|
|
(10,898
|
)
|
|
235,338
|
|
||||
Canada
|
1
|
|
5,648
|
|
|
2,112
|
|
|
(606
|
)
|
|
7,154
|
|
||||
Other international
|
1
|
|
14,820
|
|
|
160
|
|
|
(2,390
|
)
|
|
12,590
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
||||||||
Equity
|
1
|
|
21,783
|
|
|
3,138
|
|
|
(1,850
|
)
|
|
23,071
|
|
||||
Fixed income
|
1
|
|
890,013
|
|
|
530
|
|
|
(63,913
|
)
|
|
826,630
|
|
||||
Other
|
3
|
|
645
|
|
|
1,257
|
|
|
—
|
|
|
1,902
|
|
||||
Trust investments, at fair value
|
|
|
1,220,172
|
|
|
22,984
|
|
|
(80,487
|
)
|
|
1,162,669
|
|
||||
Private equity
|
|
|
75,613
|
|
|
2,406
|
|
|
(8,096
|
)
|
|
69,923
|
|
||||
Trust investments, at net asset value
|
|
|
75,613
|
|
|
2,406
|
|
|
(8,096
|
)
|
|
69,923
|
|
||||
Trust investments, at market
|
|
|
$
|
1,295,785
|
|
|
$
|
25,390
|
|
|
$
|
(88,583
|
)
|
|
$
|
1,232,592
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
(In thousands)
|
|
|
||||||||||
Fair market value, beginning balance
|
$
|
1,881
|
|
|
$
|
1,561
|
|
|
$
|
1,902
|
|
|
$
|
1,556
|
|
Net unrealized gains (losses) included in
Accumulated other comprehensive income
(1)
|
1
|
|
|
354
|
|
|
(20
|
)
|
|
359
|
|
||||
Fair market value, ending balance
|
$
|
1,882
|
|
|
$
|
1,915
|
|
|
$
|
1,882
|
|
|
$
|
1,915
|
|
(1)
|
All unrealized gains (losses) recognized in
Accumulated other comprehensive income
for our cemetery perpetual care trust investments are offset by a corresponding reclassification in
Accumulated other comprehensive income
to
Care trusts’ corpus
. See Note 6 for further information related to our
Care trusts’ corpus
.
|
|
Fair Value
|
||
|
(In thousands)
|
||
Due in one year or less
|
$
|
28,832
|
|
Due in one to five years
|
18,273
|
|
|
Due in five to ten years
|
108
|
|
|
Thereafter
|
245
|
|
|
|
$
|
47,458
|
|
|
September 30, 2016
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Value
|
|
Unrealized
Losses
|
|
Value
|
|
Unrealized
Losses
|
|
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,953
|
|
|
$
|
(30
|
)
|
|
$
|
2,953
|
|
|
$
|
(30
|
)
|
Canadian government
|
—
|
|
|
—
|
|
|
1,993
|
|
|
(95
|
)
|
|
1,993
|
|
|
(95
|
)
|
||||||
Corporate
|
1,738
|
|
|
(26
|
)
|
|
1,938
|
|
|
(98
|
)
|
|
3,676
|
|
|
(124
|
)
|
||||||
Asset-backed
|
22
|
|
|
(14
|
)
|
|
101
|
|
|
(4
|
)
|
|
123
|
|
|
(18
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Preferred stock
|
206
|
|
|
(3
|
)
|
|
474
|
|
|
(75
|
)
|
|
680
|
|
|
(78
|
)
|
||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
43,842
|
|
|
(2,795
|
)
|
|
21,929
|
|
|
(4,516
|
)
|
|
65,771
|
|
|
(7,311
|
)
|
||||||
Canada
|
—
|
|
|
—
|
|
|
655
|
|
|
(172
|
)
|
|
655
|
|
|
(172
|
)
|
||||||
Other international
|
2,420
|
|
|
(85
|
)
|
|
6,102
|
|
|
(1,317
|
)
|
|
8,522
|
|
|
(1,402
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity
|
1,028
|
|
|
(42
|
)
|
|
3,998
|
|
|
(1,462
|
)
|
|
5,026
|
|
|
(1,504
|
)
|
||||||
Fixed income
|
14,945
|
|
|
(142
|
)
|
|
342,796
|
|
|
(26,482
|
)
|
|
357,741
|
|
|
(26,624
|
)
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||||
Trust investments, at fair value
|
64,201
|
|
|
(3,107
|
)
|
|
382,939
|
|
|
(34,253
|
)
|
|
447,140
|
|
|
(37,360
|
)
|
||||||
Fixed income commingled funds
|
244,142
|
|
|
(1,153
|
)
|
|
—
|
|
|
—
|
|
|
244,142
|
|
|
(1,153
|
)
|
||||||
Private equity
|
2,207
|
|
|
(178
|
)
|
|
32,518
|
|
|
(5,894
|
)
|
|
34,725
|
|
|
(6,072
|
)
|
||||||
Trust investments, at net asset value
|
246,349
|
|
|
(1,331
|
)
|
|
32,518
|
|
|
(5,894
|
)
|
|
278,867
|
|
|
(7,225
|
)
|
||||||
Total temporarily impaired securities
|
$
|
310,550
|
|
|
$
|
(4,438
|
)
|
|
$
|
415,457
|
|
|
$
|
(40,147
|
)
|
|
$
|
726,007
|
|
|
$
|
(44,585
|
)
|
|
December 31, 2015
|
||||||||||||||||||||||
|
In Loss Position
Less Than 12 Months
|
|
In Loss Position
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Value
|
|
Unrealized
Losses
|
|
Value
|
|
Unrealized
Losses
|
|
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
|
|
|
(In thousands)
|
|
|
|
|
||||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury
|
$
|
3,275
|
|
|
$
|
(80
|
)
|
|
$
|
35
|
|
|
$
|
(1
|
)
|
|
$
|
3,310
|
|
|
$
|
(81
|
)
|
Canadian government
|
18,499
|
|
|
(164
|
)
|
|
1,371
|
|
|
(102
|
)
|
|
19,870
|
|
|
(266
|
)
|
||||||
Corporate
|
5,163
|
|
|
(134
|
)
|
|
4,147
|
|
|
(150
|
)
|
|
9,310
|
|
|
(284
|
)
|
||||||
Residential mortgage-backed
|
303
|
|
|
(3
|
)
|
|
117
|
|
|
(6
|
)
|
|
420
|
|
|
(9
|
)
|
||||||
Asset-backed
|
145
|
|
|
(12
|
)
|
|
360
|
|
|
(19
|
)
|
|
505
|
|
|
(31
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Preferred stock
|
4,029
|
|
|
(159
|
)
|
|
—
|
|
|
—
|
|
|
4,029
|
|
|
(159
|
)
|
||||||
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
81,624
|
|
|
(7,793
|
)
|
|
14,900
|
|
|
(3,105
|
)
|
|
96,524
|
|
|
(10,898
|
)
|
||||||
Canada
|
702
|
|
|
(31
|
)
|
|
1,026
|
|
|
(575
|
)
|
|
1,728
|
|
|
(606
|
)
|
||||||
Other international
|
8,734
|
|
|
(940
|
)
|
|
2,347
|
|
|
(1,450
|
)
|
|
11,081
|
|
|
(2,390
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity
|
4,580
|
|
|
(606
|
)
|
|
1,258
|
|
|
(1,244
|
)
|
|
5,838
|
|
|
(1,850
|
)
|
||||||
Fixed income
|
519,981
|
|
|
(18,205
|
)
|
|
294,309
|
|
|
(45,708
|
)
|
|
814,290
|
|
|
(63,913
|
)
|
||||||
Trust investments, at fair value
|
647,035
|
|
|
(28,127
|
)
|
|
319,870
|
|
|
(52,360
|
)
|
|
966,905
|
|
|
(80,487
|
)
|
||||||
Private equity
|
10,592
|
|
|
(61
|
)
|
|
24,556
|
|
|
(8,035
|
)
|
|
35,148
|
|
|
(8,096
|
)
|
||||||
Trust investments, at net asset value
|
10,592
|
|
|
(61
|
)
|
|
24,556
|
|
|
(8,035
|
)
|
|
35,148
|
|
|
(8,096
|
)
|
||||||
Total temporarily impaired securities
|
$
|
657,627
|
|
|
$
|
(28,188
|
)
|
|
$
|
344,426
|
|
|
$
|
(60,395
|
)
|
|
$
|
1,002,053
|
|
|
$
|
(88,583
|
)
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
Preneed
Funeral
|
|
Preneed
Cemetery
|
|
Total
|
|
Preneed
Funeral
|
|
Preneed
Cemetery
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Trust investments
|
$
|
1,559,964
|
|
|
$
|
1,565,805
|
|
|
$
|
3,125,769
|
|
|
$
|
1,515,113
|
|
|
$
|
1,462,499
|
|
|
$
|
2,977,612
|
|
Accrued trust operating payables and other
|
(271
|
)
|
|
(336
|
)
|
|
(607
|
)
|
|
(1,381
|
)
|
|
(2,845
|
)
|
|
(4,226
|
)
|
||||||
Deferred preneed receipts held in trust
|
$
|
1,559,693
|
|
|
$
|
1,565,469
|
|
|
$
|
3,125,162
|
|
|
$
|
1,513,732
|
|
|
$
|
1,459,654
|
|
|
$
|
2,973,386
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
|
(In thousands)
|
||||||
Cemetery perpetual care trust investments
|
$
|
1,395,403
|
|
|
$
|
1,319,427
|
|
Accrued trust deferred taxes, operating payables, and other
|
1,124
|
|
|
137
|
|
||
Care trusts’ corpus
|
$
|
1,396,527
|
|
|
$
|
1,319,564
|
|
|
Three Months Ended September 30, 2016
|
||||||||||||||||||
|
Funeral
Trusts
|
|
Cemetery
Trusts
|
|
Cemetery Perpetual
Care Trusts
|
|
Other, Net
|
|
Total
|
||||||||||
|
|
|
(In thousands)
|
|
|
||||||||||||||
Realized gains
|
$
|
10,031
|
|
|
$
|
13,638
|
|
|
$
|
1,393
|
|
|
$
|
—
|
|
|
$
|
25,062
|
|
Realized losses
|
(5,988
|
)
|
|
(7,458
|
)
|
|
(591
|
)
|
|
—
|
|
|
(14,037
|
)
|
|||||
Impairment charges
|
(802
|
)
|
|
(1,086
|
)
|
|
—
|
|
|
—
|
|
|
(1,888
|
)
|
|||||
Interest, dividend, and other ordinary income
|
3,811
|
|
|
7,035
|
|
|
12,927
|
|
|
—
|
|
|
23,773
|
|
|||||
Trust expenses and income taxes
|
(5,374
|
)
|
|
(10,379
|
)
|
|
(5,774
|
)
|
|
—
|
|
|
(21,527
|
)
|
|||||
Net trust investment (loss) income
|
1,678
|
|
|
1,750
|
|
|
7,955
|
|
|
—
|
|
|
11,383
|
|
|||||
Reclassification to deferred preneed receipts held in trust and care trusts’ corpus
|
(1,678
|
)
|
|
(1,750
|
)
|
|
(7,955
|
)
|
|
—
|
|
|
(11,383
|
)
|
|||||
Other income, net
|
—
|
|
|
—
|
|
|
—
|
|
|
110
|
|
|
110
|
|
|||||
Total other income, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
110
|
|
|
$
|
110
|
|
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||
|
Funeral
Trusts
|
|
Cemetery
Trusts
|
|
Cemetery Perpetual
Care Trusts
|
|
Other, Net
|
|
Total
|
||||||||||
|
|
|
(In thousands)
|
|
|
||||||||||||||
Realized gains
|
$
|
23,101
|
|
|
$
|
31,557
|
|
|
$
|
5,187
|
|
|
$
|
—
|
|
|
$
|
59,845
|
|
Realized losses
|
(35,840
|
)
|
|
(48,907
|
)
|
|
(5,932
|
)
|
|
—
|
|
|
(90,679
|
)
|
|||||
Impairment charges
|
(4,002
|
)
|
|
(5,767
|
)
|
|
(115
|
)
|
|
—
|
|
|
(9,884
|
)
|
|||||
Interest, dividend, and other ordinary income
|
12,539
|
|
|
10,750
|
|
|
39,982
|
|
|
—
|
|
|
63,271
|
|
|||||
Trust expenses and income taxes
|
(13,568
|
)
|
|
(16,599
|
)
|
|
(19,678
|
)
|
|
—
|
|
|
(49,845
|
)
|
|||||
Net trust investment (loss) income
|
(17,770
|
)
|
|
(28,966
|
)
|
|
19,444
|
|
|
—
|
|
|
(27,292
|
)
|
|||||
Reclassification to deferred preneed receipts held in trust and care trusts’ corpus
|
17,770
|
|
|
28,966
|
|
|
(19,444
|
)
|
|
—
|
|
|
27,292
|
|
|||||
Other expense, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(697
|
)
|
|
(697
|
)
|
|||||
Total other expense, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(697
|
)
|
|
$
|
(697
|
)
|
|
Three Months Ended September 30, 2015
|
||||||||||||||||||
|
Funeral
Trusts
|
|
Cemetery
Trusts
|
|
Cemetery Perpetual
Care Trusts
|
|
Other, Net
|
|
Total
|
||||||||||
|
|
|
(In thousands)
|
|
|
||||||||||||||
Realized gains
|
$
|
9,341
|
|
|
$
|
10,318
|
|
|
$
|
524
|
|
|
$
|
—
|
|
|
$
|
20,183
|
|
Realized losses
|
(8,982
|
)
|
|
(11,948
|
)
|
|
(156
|
)
|
|
—
|
|
|
(21,086
|
)
|
|||||
Impairment charges
|
(1,385
|
)
|
|
(1,761
|
)
|
|
(106
|
)
|
|
—
|
|
|
(3,252
|
)
|
|||||
Interest, dividend, and other ordinary income
|
4,244
|
|
|
4,360
|
|
|
14,035
|
|
|
—
|
|
|
22,639
|
|
|||||
Trust expenses and income taxes
|
(5,804
|
)
|
|
(7,902
|
)
|
|
(4,524
|
)
|
|
—
|
|
|
(18,230
|
)
|
|||||
Net trust investment (loss) income
|
(2,586
|
)
|
|
(6,933
|
)
|
|
9,773
|
|
|
—
|
|
|
254
|
|
|||||
Reclassification to deferred preneed receipts held in trust and care trusts’ corpus
|
2,586
|
|
|
6,933
|
|
|
(9,773
|
)
|
|
—
|
|
|
(254
|
)
|
|||||
Other income, net
|
—
|
|
|
—
|
|
|
—
|
|
|
336
|
|
|
336
|
|
|||||
Total other income, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
336
|
|
|
$
|
336
|
|
|
Nine Months Ended September 30, 2015
|
||||||||||||||||||
|
Funeral
Trusts
|
|
Cemetery
Trusts
|
|
Cemetery Perpetual
Care Trusts
|
|
Other, Net
|
|
Total
|
||||||||||
|
|
|
(In thousands)
|
|
|
||||||||||||||
Realized gains
|
$
|
23,546
|
|
|
$
|
33,859
|
|
|
$
|
2,675
|
|
|
$
|
—
|
|
|
$
|
60,080
|
|
Realized losses
|
(17,554
|
)
|
|
(25,375
|
)
|
|
(4,478
|
)
|
|
—
|
|
|
(47,407
|
)
|
|||||
Impairment charges
|
(2,880
|
)
|
|
(3,811
|
)
|
|
(1,613
|
)
|
|
—
|
|
|
(8,304
|
)
|
|||||
Interest, dividend, and other ordinary income
|
17,126
|
|
|
16,138
|
|
|
40,369
|
|
|
—
|
|
|
73,633
|
|
|||||
Trust expenses and income taxes
|
(15,641
|
)
|
|
(23,009
|
)
|
|
(27,367
|
)
|
|
—
|
|
|
(66,017
|
)
|
|||||
Net trust investment (loss) income
|
4,597
|
|
|
(2,198
|
)
|
|
9,586
|
|
|
—
|
|
|
11,985
|
|
|||||
Reclassification to deferred preneed receipts held in trust and care trusts’ corpus
|
(4,597
|
)
|
|
2,198
|
|
|
(9,586
|
)
|
|
—
|
|
|
(11,985
|
)
|
|||||
Other income, net
|
—
|
|
|
—
|
|
|
—
|
|
|
169
|
|
|
169
|
|
|||||
Total other income, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
169
|
|
|
$
|
169
|
|
|
September 30, 2016
|
|
December 31, 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
|
682,500
|
|
|
—
|
|
||
Bank Credit Facility due March 2021
|
325,000
|
|
|
—
|
|
||
Obligations under capital leases
|
210,760
|
|
|
204,246
|
|
||
Mortgage notes and other debt, maturities through 2050
|
3,786
|
|
|
4,037
|
|
||
Unamortized premiums, net
|
8,522
|
|
|
8,636
|
|
||
Unamortized debt issuance costs
|
(34,343
|
)
|
|
(42,491
|
)
|
||
Total debt
|
3,271,225
|
|
|
3,124,428
|
|
||
Less: Current maturities of long-term debt
|
(89,531
|
)
|
|
(86,823
|
)
|
||
Total long-term debt
|
$
|
3,181,694
|
|
|
$
|
3,037,605
|
|
•
|
$310.0 million
in aggregate principal of our Term Loan due
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
|
•
|
$17.5 million
in aggregate principal of our Term Loan due
March 2021
.
|
•
|
$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; and
|
•
|
$45.0 million
in aggregate principal of our Term Loan due
July 2018
.
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
|
(In thousands)
|
||||||
7.0% Senior Notes due June 2017
|
$
|
—
|
|
|
$
|
314,618
|
|
7.625% Senior Notes due October 2018
|
279,375
|
|
|
279,375
|
|
||
4.5% Senior Notes due November 2020
|
205,100
|
|
|
201,500
|
|
||
8.0% Senior Notes due November 2021
|
179,343
|
|
|
176,438
|
|
||
5.375% Senior Notes due January 2022
|
442,616
|
|
|
445,188
|
|
||
5.375% Senior Notes due May 2024
|
907,375
|
|
|
884,094
|
|
||
7.5% Senior Notes due April 2027
|
238,000
|
|
|
216,500
|
|
||
Term Loan due March 2021
|
682,500
|
|
|
—
|
|
||
Bank Credit Facility due March 2021
|
325,000
|
|
|
—
|
|
||
Term Loan due July 2018
|
—
|
|
|
310,000
|
|
||
Bank Credit Facility due July 2018
|
—
|
|
|
270,000
|
|
||
Mortgage notes and other debt, maturities through 2050
|
3,786
|
|
|
4,047
|
|
||
Total fair value of debt instruments
|
$
|
3,263,095
|
|
|
$
|
3,101,760
|
|
Dividend yield
|
2.0
|
%
|
Expected volatility
|
19.7
|
%
|
Risk-free interest rate
|
1.0
|
%
|
Expected holding period (in years)
|
4.0
|
|
|
Options
|
|
Weighted Average
Exercise Price
|
|||
Outstanding at December 31, 2015
|
11,047,920
|
|
|
$
|
13.98
|
|
Granted
|
1,863,700
|
|
|
$
|
22.28
|
|
Exercised
|
(1,924,324
|
)
|
|
$
|
8.33
|
|
Canceled
|
(28,272
|
)
|
|
$
|
20.98
|
|
Outstanding at September 30, 2016
|
10,959,024
|
|
|
$
|
16.36
|
|
Exercisable at September 30, 2016
|
7,100,945
|
|
|
$
|
13.54
|
|
|
Restricted
Stock Awards
|
|
Weighted Average
Grant Date
Fair Value
|
|||
Nonvested restricted stock awards at December 31, 2015
|
573,739
|
|
|
$
|
19.32
|
|
Granted
|
241,510
|
|
|
$
|
22.28
|
|
Vested
|
(313,247
|
)
|
|
$
|
18.14
|
|
Forfeited
|
(1,258
|
)
|
|
$
|
20.85
|
|
Nonvested restricted stock awards at September 30, 2016
|
500,744
|
|
|
$
|
21.48
|
|
|
Restricted
Stock Units
|
|
Weighted Average
Grant Date
Fair Value
|
|||
Nonvested restricted stock units at December 31, 2015
|
—
|
|
|
$
|
—
|
|
Granted
|
130,660
|
|
|
$
|
25.72
|
|
Forfeited
|
(5,200
|
)
|
|
$
|
25.72
|
|
Nonvested restricted stock units at September 30, 2016
|
125,460
|
|
|
$
|
25.72
|
|
|
Foreign
Currency
Translation
Adjustment
|
|
Unrealized
Gains and
Losses
|
|
Accumulated
Other
Comprehensive
Income
|
||||||
|
|
|
(In thousands)
|
|
|
||||||
Balance at December 31, 2015
|
$
|
6,164
|
|
|
$
|
—
|
|
|
$
|
6,164
|
|
Activity in 2016
|
18,110
|
|
|
—
|
|
|
18,110
|
|
|||
Decrease in net unrealized losses associated with available-for-sale securities of the trusts, net of taxes
|
—
|
|
|
147,017
|
|
|
147,017
|
|
|||
Reclassification of net unrealized gain activity attributable to the
Deferred preneed receipts held in trust
and
Care trusts’ corpus,
net of taxes
|
—
|
|
|
(147,017
|
)
|
|
(147,017
|
)
|
|||
Balance at September 30, 2016
|
$
|
24,274
|
|
|
$
|
—
|
|
|
$
|
24,274
|
|
|
|
|
|
|
|
||||||
Balance at December 31, 2014
|
$
|
59,414
|
|
|
$
|
—
|
|
|
$
|
59,414
|
|
Activity in 2015
|
(42,913
|
)
|
|
—
|
|
|
(42,913
|
)
|
|||
Increase in net unrealized losses associated with available-for-sale securities of the trusts, net of taxes
|
—
|
|
|
(110,016
|
)
|
|
(110,016
|
)
|
|||
Reclassification of net unrealized loss activity attributable to the
Deferred preneed receipts held in trust
and
Care trusts’ corpus
, net of taxes
|
—
|
|
|
110,016
|
|
|
110,016
|
|
|||
Balance at September 30, 2015
|
$
|
16,501
|
|
|
$
|
—
|
|
|
$
|
16,501
|
|
|
Funeral
|
|
Cemetery
|
|
Reportable
Segments
|
||||||
|
(In thousands)
|
||||||||||
Three months ended September 30,
|
|
|
|
|
|
||||||
Revenue from external customers:
|
|
|
|
|
|
||||||
2016
|
$
|
445,462
|
|
|
$
|
276,005
|
|
|
$
|
721,467
|
|
2015
|
$
|
449,300
|
|
|
$
|
265,153
|
|
|
$
|
714,453
|
|
Gross profit:
|
|
|
|
|
|
||||||
2016
|
$
|
75,576
|
|
|
$
|
65,169
|
|
|
$
|
140,745
|
|
2015
|
$
|
77,734
|
|
|
$
|
63,945
|
|
|
$
|
141,679
|
|
Nine months ended September 30,
|
|
|
|
|
|
||||||
Revenue from external customers:
|
|
|
|
|
|
||||||
2016
|
$
|
1,404,623
|
|
|
$
|
817,460
|
|
|
$
|
2,222,083
|
|
2015
|
$
|
1,428,469
|
|
|
$
|
788,292
|
|
|
$
|
2,216,761
|
|
Gross profit:
|
|
|
|
|
|
||||||
2016
|
$
|
273,938
|
|
|
$
|
191,720
|
|
|
$
|
465,658
|
|
2015
|
$
|
299,769
|
|
|
$
|
187,018
|
|
|
$
|
486,787
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands)
|
|||||||||||||||
Gross profit from reportable segments
|
|
$
|
140,745
|
|
|
$
|
141,679
|
|
|
$
|
465,658
|
|
|
$
|
486,787
|
|
General and administrative expenses
|
|
(26,916
|
)
|
|
(27,895
|
)
|
|
(102,668
|
)
|
|
(96,947
|
)
|
||||
Gains (losses) on divestitures and impairment charges, net
|
|
557
|
|
|
10,764
|
|
|
(30,432
|
)
|
|
3,403
|
|
||||
Operating income
|
|
114,386
|
|
|
124,548
|
|
|
332,558
|
|
|
393,243
|
|
||||
Interest expense
|
|
(39,508
|
)
|
|
(43,921
|
)
|
|
(121,988
|
)
|
|
(129,842
|
)
|
||||
Loss on early extinguishment of debt
|
|
(25
|
)
|
|
(6,918
|
)
|
|
(22,503
|
)
|
|
(6,918
|
)
|
||||
Other income (expense), net
|
|
110
|
|
|
336
|
|
|
(697
|
)
|
|
169
|
|
||||
Income before income taxes
|
|
$
|
74,963
|
|
|
$
|
74,045
|
|
|
$
|
187,370
|
|
|
$
|
256,652
|
|
|
United States
|
|
Canada
|
|
Total
|
||||||
|
|
|
(In thousands)
|
|
|
||||||
Three months ended September 30,
|
|
|
|
|
|
||||||
Revenue from external customers:
|
|
|
|
|
|
||||||
2016
|
$
|
681,769
|
|
|
$
|
39,698
|
|
|
$
|
721,467
|
|
2015
|
$
|
671,785
|
|
|
$
|
42,668
|
|
|
$
|
714,453
|
|
Nine months ended September 30,
|
|
|
|
|
|
||||||
Revenue from external customers:
|
|
|
|
|
|
||||||
2016
|
$
|
2,098,091
|
|
|
$
|
123,992
|
|
|
$
|
2,222,083
|
|
2015
|
$
|
2,077,143
|
|
|
$
|
139,618
|
|
|
$
|
2,216,761
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands)
|
||||||||||||||
Property and merchandise revenue:
|
|
|
|
|
|
|
|
||||||||
Funeral
|
$
|
145,989
|
|
|
$
|
146,187
|
|
|
$
|
459,907
|
|
|
$
|
460,317
|
|
Cemetery
|
215,570
|
|
|
206,231
|
|
|
631,000
|
|
|
601,372
|
|
||||
Total property and merchandise revenue
|
361,559
|
|
|
352,418
|
|
|
1,090,907
|
|
|
1,061,689
|
|
||||
Services revenue:
|
|
|
|
|
|
|
|
||||||||
Funeral
|
268,588
|
|
|
267,279
|
|
|
843,004
|
|
|
867,969
|
|
||||
Cemetery
|
52,748
|
|
|
51,804
|
|
|
163,495
|
|
|
164,075
|
|
||||
Total services revenue
|
321,336
|
|
|
319,083
|
|
|
1,006,499
|
|
|
1,032,044
|
|
||||
Other revenue
|
38,572
|
|
|
42,952
|
|
|
124,677
|
|
|
123,028
|
|
||||
Total revenue
|
$
|
721,467
|
|
|
$
|
714,453
|
|
|
$
|
2,222,083
|
|
|
$
|
2,216,761
|
|
Property and merchandise costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Funeral
|
$
|
67,529
|
|
|
$
|
69,902
|
|
|
$
|
216,752
|
|
|
$
|
220,372
|
|
Cemetery
|
118,467
|
|
|
112,125
|
|
|
352,087
|
|
|
332,940
|
|
||||
Total cost of property and merchandise
|
185,996
|
|
|
182,027
|
|
|
568,839
|
|
|
553,312
|
|
||||
Services costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Funeral
|
154,166
|
|
|
156,105
|
|
|
470,974
|
|
|
469,885
|
|
||||
Cemetery
|
26,005
|
|
|
24,388
|
|
|
82,593
|
|
|
80,594
|
|
||||
Total cost of services
|
180,171
|
|
|
180,493
|
|
|
553,567
|
|
|
550,479
|
|
||||
Overhead and other expenses
|
214,555
|
|
|
210,254
|
|
|
634,019
|
|
|
626,183
|
|
||||
Total costs and expenses
|
$
|
580,722
|
|
|
$
|
572,774
|
|
|
$
|
1,756,425
|
|
|
$
|
1,729,974
|
|
|
|
Nine Months Ended
|
||||||
|
|
September 30,
|
||||||
|
|
2016
|
|
2015
|
||||
|
|
(In thousands)
|
||||||
Net change in capital expenditure accrual
|
|
$
|
(6,160
|
)
|
|
$
|
(1,587
|
)
|
Acquisitions of capital leases, primarily transportation equipment
|
|
$
|
33,814
|
|
|
$
|
51,347
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands, except per share amounts)
|
||||||||||||||
Amounts attributable to common stockholders:
|
|
|
|
|
|
|
|
||||||||
Net income:
|
|
|
|
|
|
|
|
||||||||
Net income — basic
|
$
|
47,727
|
|
|
$
|
47,448
|
|
|
$
|
110,792
|
|
|
$
|
161,418
|
|
After tax interest on convertible debt
|
13
|
|
|
13
|
|
|
35
|
|
|
37
|
|
||||
Net income — diluted
|
$
|
47,740
|
|
|
$
|
47,461
|
|
|
$
|
110,827
|
|
|
$
|
161,455
|
|
Weighted average shares (denominator):
|
|
|
|
|
|
|
|
||||||||
Weighted average shares — basic
|
193,274
|
|
|
199,310
|
|
|
193,999
|
|
|
201,729
|
|
||||
Stock options
|
3,154
|
|
|
4,013
|
|
|
3,049
|
|
|
4,100
|
|
||||
Restricted stock units
|
18
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||
Convertible debt
|
121
|
|
|
121
|
|
|
121
|
|
|
121
|
|
||||
Weighted average shares — diluted
|
196,567
|
|
|
203,444
|
|
|
197,175
|
|
|
205,950
|
|
||||
Net income per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.25
|
|
|
$
|
0.24
|
|
|
$
|
0.57
|
|
|
$
|
0.80
|
|
Diluted
|
$
|
0.24
|
|
|
$
|
0.23
|
|
|
$
|
0.56
|
|
|
$
|
0.78
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||||||
Antidilutive options
|
551
|
|
|
—
|
|
|
936
|
|
|
—
|
|
Antidilutive restricted stock units
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
Total common stock equivalents excluded from computation
|
551
|
|
|
—
|
|
|
938
|
|
|
—
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands)
|
||||||||||||||
Gains on divestitures, net
|
$
|
864
|
|
|
$
|
12,400
|
|
|
$
|
2,974
|
|
|
$
|
9,373
|
|
Impairment losses
|
(307
|
)
|
|
(1,636
|
)
|
|
(33,406
|
)
|
|
(5,970
|
)
|
||||
Gains (losses) on divestitures and impairment charges, net
|
$
|
557
|
|
|
$
|
10,764
|
|
|
$
|
(30,432
|
)
|
|
$
|
3,403
|
|
Preneed funeral receivables, net and trust investments
|
$
|
1,034
|
|
Property and equipment, net
|
24,199
|
|
|
Goodwill
|
25,896
|
|
|
Deferred charges and other assets
|
12,960
|
|
|
Assets held-for-sale
|
64,089
|
|
|
Less: impairment on assets held-for-sale
|
(32,143
|
)
|
|
Assets held-for-sale, net
|
$
|
31,946
|
|
|
Per Credit Agreement
|
|
Actual
|
Leverage ratio
|
4.25 (Max)
|
|
3.92
|
Interest coverage ratio
|
3.00 (Min)
|
|
4.85
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(In millions)
|
||||||
Premiums paid on early extinguishment
|
$
|
20.5
|
|
|
$
|
6.5
|
|
Excess tax benefits from share-based awards
|
$
|
11.5
|
|
|
$
|
17.3
|
|
System transition and other costs
|
$
|
11.1
|
|
|
$
|
4.2
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
|
(In millions)
|
||||||
Preneed funeral
|
$
|
118.6
|
|
|
$
|
112.7
|
|
Preneed cemetery:
|
|
|
|
||||
Merchandise and services
|
141.3
|
|
|
136.7
|
|
||
Pre-construction
|
7.8
|
|
|
5.9
|
|
||
Bonds supporting preneed obligations
|
267.7
|
|
|
255.3
|
|
||
Bonds supporting preneed business permits
|
4.5
|
|
|
4.5
|
|
||
Other bonds
|
18.9
|
|
|
17.9
|
|
||
Total surety bonds outstanding
|
$
|
291.1
|
|
|
$
|
277.7
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In millions)
|
||||||||||||||
Funeral:
|
|
|
|
|
|
|
|
||||||||
Preneed trust-funded (including bonded):
|
|
|
|
|
|
|
|
||||||||
Sales production
|
$
|
72.5
|
|
|
$
|
65.0
|
|
|
$
|
216.4
|
|
|
$
|
196.9
|
|
Sales production (number of contracts)
|
22,549
|
|
|
20,975
|
|
|
68,562
|
|
|
63,623
|
|
||||
Maturities
|
$
|
58.1
|
|
|
$
|
53.5
|
|
|
$
|
177.2
|
|
|
$
|
168.5
|
|
Maturities (number of contracts)
|
15,295
|
|
|
15,798
|
|
|
48,417
|
|
|
49,518
|
|
||||
Cemetery:
|
|
|
|
|
|
|
|
||||||||
Sales production:
|
|
|
|
|
|
|
|
||||||||
Preneed
|
$
|
189.8
|
|
|
$
|
180.5
|
|
|
$
|
595.6
|
|
|
$
|
569.1
|
|
Atneed
|
72.6
|
|
|
73.9
|
|
|
230.1
|
|
|
228.3
|
|
||||
Total sales production
|
$
|
262.4
|
|
|
$
|
254.4
|
|
|
$
|
825.7
|
|
|
$
|
797.4
|
|
Sales production deferred to backlog:
|
|
|
|
|
|
|
|
||||||||
Preneed
|
$
|
93.9
|
|
|
$
|
88.6
|
|
|
$
|
283.8
|
|
|
$
|
262.2
|
|
Atneed
|
55.6
|
|
|
54.8
|
|
|
172.4
|
|
|
171.1
|
|
||||
Total sales production deferred to backlog
|
$
|
149.5
|
|
|
$
|
143.4
|
|
|
$
|
456.2
|
|
|
$
|
433.3
|
|
Revenue recognized from backlog:
|
|
|
|
|
|
|
|
||||||||
Preneed
|
$
|
73.4
|
|
|
$
|
64.9
|
|
|
$
|
187.1
|
|
|
$
|
167.5
|
|
Atneed
|
56.5
|
|
|
54.9
|
|
|
171.3
|
|
|
167.5
|
|
||||
Total revenue recognized from backlog
|
$
|
129.9
|
|
|
$
|
119.8
|
|
|
$
|
358.4
|
|
|
$
|
335.0
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In millions)
|
||||||||||||||
Preneed insurance-funded:
|
|
|
|
|
|
|
|
||||||||
Sales production
(1)
|
$
|
131.9
|
|
|
$
|
136.4
|
|
|
$
|
422.4
|
|
|
$
|
409.7
|
|
Sales production (number of contracts)
(1)
|
21,434
|
|
|
22,803
|
|
|
69,156
|
|
|
68,215
|
|
||||
General agency revenue
|
$
|
32.1
|
|
|
$
|
34.9
|
|
|
$
|
105.4
|
|
|
$
|
101.3
|
|
Maturities
|
$
|
76.0
|
|
|
$
|
72.8
|
|
|
$
|
239.4
|
|
|
$
|
241.4
|
|
Maturities (number of contracts)
|
12,943
|
|
|
12,086
|
|
|
40,778
|
|
|
40,873
|
|
(1)
|
Amounts are not included in our unaudited condensed Consolidated Balance Sheet.
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
Fair Value
|
|
Cost
|
|
Fair Value
|
|
Cost
|
||||||||
|
|
|
(In billions)
|
|
|
||||||||||
Deferred preneed funeral revenue
|
$
|
0.57
|
|
|
$
|
0.57
|
|
|
$
|
0.56
|
|
|
$
|
0.56
|
|
Deferred preneed funeral receipts held in trust
|
1.56
|
|
|
1.53
|
|
|
1.51
|
|
|
1.56
|
|
||||
|
$
|
2.13
|
|
|
$
|
2.10
|
|
|
$
|
2.07
|
|
|
$
|
2.12
|
|
Allowance for cancellation on trust investments
|
(0.12
|
)
|
|
(0.12
|
)
|
|
(0.16
|
)
|
|
(0.16
|
)
|
||||
Backlog of trust-funded preneed funeral revenue
|
$
|
2.01
|
|
|
$
|
1.98
|
|
|
$
|
1.91
|
|
|
$
|
1.96
|
|
Backlog of insurance-funded preneed revenue
(1)
|
5.34
|
|
|
5.34
|
|
|
5.10
|
|
|
5.10
|
|
||||
Total backlog of preneed funeral revenue
|
$
|
7.35
|
|
|
$
|
7.32
|
|
|
$
|
7.01
|
|
|
$
|
7.06
|
|
Preneed funeral receivables, net and trust investments
|
$
|
1.82
|
|
|
$
|
1.79
|
|
|
$
|
1.76
|
|
|
$
|
1.81
|
|
Allowance for cancellation on trust investments
|
(0.10
|
)
|
|
(0.10
|
)
|
|
(0.15
|
)
|
|
(0.15
|
)
|
||||
Assets associated with backlog of trust-funded deferred preneed funeral revenue, net of estimated allowance for cancellation
|
$
|
1.72
|
|
|
$
|
1.69
|
|
|
$
|
1.61
|
|
|
$
|
1.66
|
|
Insurance policies associated with insurance-funded deferred revenue, net of estimated allowance for cancellation
(1)
|
5.34
|
|
|
5.34
|
|
|
5.10
|
|
|
5.10
|
|
||||
Total assets associated with backlog of preneed funeral revenue, net of estimated allowance for cancellation
|
$
|
7.06
|
|
|
$
|
7.03
|
|
|
$
|
6.71
|
|
|
$
|
6.76
|
|
|
|
|
|
|
|
|
|
||||||||
Deferred preneed cemetery revenue
|
$
|
1.18
|
|
|
$
|
1.18
|
|
|
$
|
1.12
|
|
|
$
|
1.12
|
|
Deferred preneed cemetery receipts held in trust
|
1.57
|
|
|
1.52
|
|
|
1.46
|
|
|
1.51
|
|
||||
|
$
|
2.75
|
|
|
$
|
2.70
|
|
|
$
|
2.58
|
|
|
$
|
2.63
|
|
Allowance for cancellation on trust investments
|
(0.15
|
)
|
|
(0.15
|
)
|
|
(0.11
|
)
|
|
(0.11
|
)
|
||||
Total backlog of deferred cemetery revenue
|
$
|
2.60
|
|
|
$
|
2.55
|
|
|
$
|
2.47
|
|
|
$
|
2.52
|
|
Preneed cemetery receivables, net and trust investments
|
$
|
2.47
|
|
|
$
|
2.42
|
|
|
$
|
2.32
|
|
|
$
|
2.37
|
|
Allowance for cancellation on trust investments
|
(0.15
|
)
|
|
(0.15
|
)
|
|
(0.12
|
)
|
|
(0.12
|
)
|
||||
Total assets associated with backlog of deferred cemetery revenue, net of estimated allowance for cancellation
|
$
|
2.32
|
|
|
$
|
2.27
|
|
|
$
|
2.20
|
|
|
$
|
2.25
|
|
(1)
|
Amounts are not included in our unaudited condensed Consolidated Balance Sheet.
|
|
Three Months Ended September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Pre-tax gains from divestitures and impairment, net
|
$
|
557
|
|
|
$
|
10,764
|
|
Pre-tax losses from the early extinguishment of debt
|
$
|
(25
|
)
|
|
$
|
(6,918
|
)
|
Pre-tax expenses related to system transition costs
|
$
|
(2,252
|
)
|
|
$
|
(124
|
)
|
Tax provision from above items
|
$
|
(1,467
|
)
|
|
$
|
(1,131
|
)
|
Change in certain tax reserves and other
|
$
|
(768
|
)
|
|
$
|
(1,042
|
)
|
|
Three Months Ended September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(Dollars in millions, except average revenue per service)
|
||||||
Consolidated funeral revenue
|
$
|
445.5
|
|
|
$
|
449.3
|
|
Less: Revenue associated with acquisitions/new construction
|
6.8
|
|
|
2.0
|
|
||
Less: Revenue associated with divestitures
|
0.7
|
|
|
2.4
|
|
||
Comparable
1
funeral revenue
|
438.0
|
|
|
444.9
|
|
||
Less: Comparable recognized preneed revenue
|
27.4
|
|
|
25.5
|
|
||
Less: Comparable general agency and other revenue
|
30.3
|
|
|
35.6
|
|
||
Adjusted comparable funeral revenue
|
$
|
380.3
|
|
|
$
|
383.8
|
|
Comparable services performed
|
71,717
|
|
|
73,062
|
|
||
Comparable average revenue per service
2
|
$
|
5,303
|
|
|
$
|
5,253
|
|
|
|
|
|
||||
Consolidated funeral gross profit
|
$
|
75.6
|
|
|
$
|
77.7
|
|
Less: Gross profit (loss) associated with acquisitions/new construction
|
0.8
|
|
|
(0.2
|
)
|
||
Less: Gross loss associated with divestitures
|
(0.3
|
)
|
|
(0.4
|
)
|
||
Comparable
funeral gross profit
|
$
|
75.1
|
|
|
$
|
78.3
|
|
(1)
|
We define comparable (or same store) operations as those funeral locations owned by us for the entire period beginning
January 1, 2015
and ending
September 30, 2016
.
|
(2)
|
We calculate comparable average revenue per service by dividing comparable funeral revenue, excluding general agency revenue, recognized preneed revenue, and other revenue to avoid distorting our average of normal funeral services revenue, by the comparable number of services performed during the period. Recognized preneed revenues are preneed sales of merchandise that are delivered at the time of sale, including memorial merchandise and travel protection, and are excluded from our calculation of comparable average revenue per service because the associated service has not yet been performed.
|
|
Three Months Ended September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(In millions)
|
||||||
Consolidated cemetery revenue
|
$
|
276.0
|
|
|
$
|
265.2
|
|
Less: Revenue associated with acquisitions/new construction
|
2.0
|
|
|
1.8
|
|
||
Less: Revenue associated with divestitures
|
—
|
|
|
0.3
|
|
||
Comparable
1
cemetery revenue
|
$
|
274.0
|
|
|
$
|
263.1
|
|
|
|
|
|
||||
Consolidated cemetery gross profit
|
$
|
65.2
|
|
|
$
|
63.9
|
|
Less: Gross profit associated with acquisitions/new construction
|
0.4
|
|
|
0.8
|
|
||
Less: Gross loss associated with divestitures
|
(0.2
|
)
|
|
—
|
|
||
Comparable cemetery gross profit
|
$
|
65.0
|
|
|
$
|
63.1
|
|
(1)
|
We define comparable (or same store) operations as those cemetery locations owned by us for the entire period beginning
January 1, 2015
and ending
September 30, 2016
.
|
|
Nine Months Ended September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Pre-tax (losses) gains from divestitures and impairment, net
|
$
|
(30,432
|
)
|
|
$
|
3,403
|
|
Pre-tax losses from the early extinguishment of debt
|
$
|
(22,503
|
)
|
|
$
|
(6,918
|
)
|
Pre-tax acquisition and integration costs
|
$
|
(5,486
|
)
|
|
$
|
(2,968
|
)
|
Pre-tax expenses related to system transition costs
|
$
|
(11,216
|
)
|
|
$
|
(1,082
|
)
|
Tax benefit from above items
|
$
|
21,079
|
|
|
$
|
2,560
|
|
Change in certain tax reserves and other
|
$
|
(3,426
|
)
|
|
$
|
(1,754
|
)
|
|
Nine Months Ended September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(Dollars in millions, except average revenue per service)
|
||||||
Consolidated funeral revenue
|
$
|
1,404.6
|
|
|
$
|
1,428.5
|
|
Less: Revenue associated with acquisitions/new construction
|
12.8
|
|
|
3.8
|
|
||
Less: Revenue associated with divestitures
|
1.3
|
|
|
8.9
|
|
||
Comparable
1
funeral revenue
|
1,390.5
|
|
|
1,415.8
|
|
||
Less: Comparable recognized preneed revenue
|
85.1
|
|
|
74.0
|
|
||
Less: Comparable general agency and other revenue
|
101.0
|
|
|
100.3
|
|
||
Adjusted comparable funeral revenue
|
$
|
1,204.4
|
|
|
$
|
1,241.5
|
|
Comparable services performed
|
228,221
|
|
|
236,519
|
|
||
Comparable average revenue per service
2
|
$
|
5,277
|
|
|
$
|
5,249
|
|
|
|
|
|
||||
Consolidated funeral gross profit
|
$
|
273.9
|
|
|
$
|
299.8
|
|
Less: Gross profit associated with acquisitions/new construction
|
1.1
|
|
|
0.1
|
|
||
Less: Gross loss associated with divestitures
|
(1.6
|
)
|
|
(2.6
|
)
|
||
Comparable
funeral gross profit
|
$
|
274.4
|
|
|
$
|
302.3
|
|
(1)
|
We define comparable (or same store) operations as those funeral locations owned by us for the entire period beginning
January 1, 2015
and ending
September 30, 2016
.
|
(2)
|
We calculate comparable average revenue per service by dividing comparable funeral revenue, excluding general agency revenue, recognized preneed revenue, and other revenue to avoid distorting our average of normal funeral services revenue, by the comparable number of services performed during the period. Recognized preneed revenues are preneed sales of merchandise that are delivered at the time of sale, including memorial merchandise and travel protection, and are excluded from our calculation of comparable average revenue per service because the associated service has not yet been performed.
|
|
Nine Months Ended September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(In millions)
|
||||||
Consolidated cemetery revenue
|
$
|
817.5
|
|
|
$
|
788.3
|
|
Less: Revenue associated with acquisitions/new construction
|
6.4
|
|
|
3.3
|
|
||
Less: Revenue associated with divestitures
|
0.1
|
|
|
0.7
|
|
||
Comparable
1
cemetery revenue
|
$
|
811.0
|
|
|
$
|
784.3
|
|
|
|
|
|
||||
Consolidated cemetery gross profit
|
$
|
191.7
|
|
|
$
|
187.0
|
|
Less: Gross profit associated with acquisitions/new construction
|
1.8
|
|
|
1.3
|
|
||
Less: Gross loss associated with divestitures
|
(0.3
|
)
|
|
(0.2
|
)
|
||
Comparable cemetery gross profit
|
$
|
190.2
|
|
|
$
|
185.9
|
|
(1)
|
We define comparable (or same store) operations as those cemetery locations owned by us for the entire period beginning
January 1, 2015
and ending
September 30, 2016
.
|
•
|
Our affiliated funeral and cemetery trust funds own investments in equity securities, fixed income securities, and mutual funds, which are affected by market conditions that are beyond our control.
|
•
|
We may be required to replenish our affiliated funeral and cemetery trust funds in order to meet minimum funding requirements, which would have a negative effect on our earnings and cash flow.
|
•
|
Our ability to execute our strategic plan depends on many factors, some of which are beyond our control.
|
•
|
Our credit agreements contain covenants that may prevent us from engaging in certain transactions.
|
•
|
If we lost the ability to use surety bonding to support our preneed funeral and preneed cemetery activities, we may be required to make material cash payments to fund certain trust funds.
|
•
|
The funeral and cemetery industry is competitive.
|
•
|
Increasing death benefits related to preneed contracts funded through life insurance contracts may not cover future increases in the cost of providing a price-guaranteed service.
|
•
|
The financial condition of third-party insurance companies that fund our preneed funeral contracts may impact our future revenue.
|
•
|
Unfavorable results of litigation could have a material adverse impact on our financial statements.
|
•
|
Unfavorable publicity could affect our reputation and business.
|
•
|
If the number of deaths in our markets declines, our cash flows and revenue may decrease.
|
•
|
If we are not able to respond effectively to changing consumer preferences, our market share, revenue, and profitability could decrease.
|
•
|
The continuing upward trend in the number of cremations performed in North America could result in lower revenue and gross profit.
|
•
|
Our funeral home and cemetery businesses are high fixed-cost businesses.
|
•
|
Regulation and compliance could have a material adverse impact on our financial results.
|
•
|
Cemetery burial practice legal claims could have a material adverse impact on our financial results.
|
•
|
We use a combination of insurance, self-insurance and large deductibles in managing our exposure to certain inherent risks, as such, we could be exposed to unexpected costs that could negatively affect our financial performance.
|
•
|
A number of years elapse before particular tax matters, for which we have established accruals, are audited and finally resolved.
|
•
|
Declines in overall economic conditions beyond our control could reduce future potential earnings and cash flows and could result in future impairments to goodwill and/or other intangible assets.
|
•
|
Any failure to maintain the security of the information relating to our customers, their loved ones, our associates, and our vendors could damage our reputation, could cause us to incur substantial additional costs and to become subject to litigation, and could adversely affect our operating results.
|
•
|
Our Canadian business exposes us to operational, economic, and currency risks.
|
•
|
Our level of indebtedness could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry, and may prevent us from fulfilling our obligations under our indebtedness.
|
•
|
Failure to maintain effective internal control over financial reporting could adversely affect our results of operations, investor confidence, and our stock price.
|
Period
|
|
Total number of shares purchased
|
|
Average price paid per share
|
|
Total number of shares purchased as part of publicly announced programs
|
|
Dollar value of shares that may yet be purchased under the program
|
||||||
July 1, 2016 - July 31, 2016
|
|
284,692
|
|
|
$
|
28.09
|
|
|
284,692
|
|
|
$
|
191,496,529
|
|
August 1, 2016 - August 31, 2016
|
|
608,140
|
|
|
$
|
27.06
|
|
|
608,140
|
|
|
$
|
175,037,934
|
|
September 1, 2016 - September 30, 2016
|
|
3,340,036
|
|
|
$
|
26.07
|
|
|
3,340,036
|
|
|
$
|
87,979,735
|
|
|
|
4,232,868
|
|
|
|
|
4,232,868
|
|
|
|
12.1
|
Ratio of earnings to fixed charges for the three and nine months ended September 30, 2016 and 2015.
|
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.
|
October 27, 2016
|
|
SERVICE CORPORATION INTERNATIONAL
|
|
By:
|
/s/ Tammy Moore
|
|
|
Tammy Moore
|
|
|
Vice President and Corporate Controller
(Principal Accounting Officer)
|
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