10-Q 1 sci-20240930.htm 10-Q sci-20240930
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period endedSEPTEMBER 30, 2024
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from          to          
Commission file number 1-6402-1
SCIcoverpagelogoblackandwhite.jpg
SERVICE CORPORATION INTERNATIONAL
(Exact name of registrant as specified in its charter)
Texas74-1488375
(State or other jurisdiction of incorporation or organization)(I.R.S. employer identification no.)
1929 Allen Parkway
Houston
Texas77019
(Address of principal executive offices)(Zip code)
Registrant’s telephone number, including area code: (713) 522-5141
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Trading Symbol (s)Name of Each Exchange on Which Registered
Common Stock ($1 par value) SCINew York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
þ
No
¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes
þ
No
¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
þ
Accelerated filer
¨
Non-accelerated filer
¨
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
¨
Indicate by check mark whether the registrant is a shell company (as defined in 12b-2 of the act).
Yes
☐
No
þ
The number of shares outstanding of the registrant’s common stock as of October 31, 2024 was 144,628,958 (net of treasury shares).


SERVICE CORPORATION INTERNATIONAL
INDEX
 Page
GLOSSARY
Unaudited Condensed Consolidated Statement of Operations - Three and Nine Months Ended September 30, 2024 & 2023
Unaudited Condensed Consolidated Statement of Comprehensive Income - Three and Nine Months Ended September 30, 2024 & 2023
Unaudited Condensed Consolidated Balance Sheet - September 30, 2024 & December 31, 2023
Unaudited Condensed Consolidated Statement of Cash Flows - Nine Months Ended September 30, 2024 & 2023
PART II. OTHER INFORMATION
2 Service Corporation International

Glossary
The following terms are common to the deathcare industry, are used throughout this report, and have the following meanings:
Atneed — Funeral, including cremation, and cemetery arrangements sold once death has occurred.
Average Revenue per Service — Average revenue per funeral service performed, excluding the impact of non-funeral home preneed sales revenue, core general agency revenue, and certain other revenue.
Cancellation — Termination of a preneed contract, which relieves us of the obligation to provide the goods and services included in the contract. Cancellations may be requested by the customer or be initiated by us for failure to comply with the contractual terms of payment. State or provincial laws govern the amount of refund, if any, owed to the customer.
Care Trusts' Corpus — The deposits and net realized capital gains included in the perpetual care trusts that may not be withdrawable. In certain states, some or all of the net realized capital gains can also be distributed. Additionally, some states allow a total return distribution that may contain elements of income, capital appreciation, and principal.
Cemetery Marker — An item used to identify the deceased person in a particular burial space, crypt, niche, or cremation memorialization property. Permanent burial and cremation memorialization cemetery markers are usually made of bronze or stone.
Cemetery Merchandise and Services — Merchandise and services used in connection with a cemetery interment, including stone and bronze memorials, cemetery markers, outer burial containers, floral placement, graveside services, merchandise installations, urns, and interments.
Cemetery Perpetual Care Trust or Endowment Care Fund (ECF) — A trust fund established for the purpose of maintaining cemetery grounds and property into perpetuity. For these trusts, the corpus remains in the trust in perpetuity and the investment earnings or elected distributions are withdrawn regularly and are intended to defray our expenses incurred to maintain the cemetery. In certain states, some or all of the net realized capital gains can also be distributed. Additionally, some states allow a total return distribution that may contain elements of income, capital appreciation, and principal.
Cemetery Property — Developed lots, lawn crypts, mausoleum spaces, niches, and cremation memorialization property items (constructed and ready to accept interments) and undeveloped land we intend to develop for the sale of interment rights. Includes the construction-in-progress balance during the pre-construction and construction phases of projects creating new developed property items.
Cemetery Property Amortization or Amortization of Cemetery Property — The non-cash recognized expenses of cemetery property interment rights, which are recorded by specific identification with the cemetery property revenue for each contract.
Cemetery Property Interment Rights — The exclusive right to determine the human remains that will be interred in a specific cemetery property space. See also Cemetery Property Revenue below.
Cemetery Property Revenue — Recognized sales of interment rights in cemetery property when the receivable is deemed collectible and the property is fully constructed and available for interment.
Combination Location (Combos) — Locations where a funeral service location is physically located within or adjoining a SCI-owned cemetery location.
Cremation — The reduction of human remains to bone fragments by intense heat.
Cremation Memorialization — Products specifically designed to commemorate and honor the life of an individual who has been cremated. These products include cemetery property items that provide for the disposition of cremated remains within our cemeteries such as benches, boulders, statues, niches, etc. They also include memorial walls and books where the name of the individual is inscribed but the remains have been scattered or kept by the family.
Cremation Niche — An above-ground burial space, in which a decedent's urn, containing their cremated remains, is placed and sometimes sealed.
Funeral Merchandise and Services — Merchandise such as burial caskets and related accessories, outer burial containers, urns and other cremation receptacles, casket and cremation memorialization products, flowers, and professional services relating to funerals including arranging and directing services, use of funeral facilities and motor vehicles, removal, preparation, embalming, cremations, memorialization, visitations, travel protection, and catering.
Funeral Services Performed — The number of funeral services, including cremations, provided after the date of death, sometimes referred to as funeral volume.
General Agency (GA) Revenue — Commissions we receive from third-party life insurance companies for life insurance policies sold to preneed customers for the purpose of funding preneed funeral arrangements. The commission rate paid is determined based on the product type sold, the length of payment terms, and the health and age of the insured/annuitant.
FORM 10-Q 3

Interment — The burial or final placement of human remains in the ground (interment), in mausoleums (entombment), or in niches or cremation memorialization property (inurnment).
Lawn Crypt — Cemetery property in which an underground outer burial receptacle constructed of concrete and reinforced steel has been pre-installed in predetermined designated areas.
Maturity — When the underlying contracted merchandise is delivered or service is performed, typically at death. This is the point at which preneed funeral contracts are converted to atneed contracts (note — delivery of certain merchandise and services can occur prior to death).
Mausoleum — An above ground structure that is designed to house caskets and/or cremation urns.
Merchandise and Service Trust — A trust account established in accordance with state or provincial law into which we deposit the required percentage of customers’ payments for preneed funeral, cremation, or cemetery merchandise and services to be delivered or performed by us in the future. The amounts deposited can be withdrawn only after we have completed our obligations under the preneed contract or upon the cancellation of the contract. Also referred to as a preneed trust.
Non-Funeral Home Preneed Sales Revenue — Non-funeral home general agency revenue and merchandise and travel protection revenues, net, sold to a preneed customer and delivered before a death has occurred.
Outer Burial Container — A reinforced container intended to inhibit the subsidence of the earth and house the casket after it is placed in the ground, also known as a burial vault.
Preneed — Purchase of cemetery property interment rights or any funeral or cemetery merchandise and services prior to death occurring.
Preneed Backlog or Backlog of Preneed Revenue — Future revenue from unfulfilled preneed funeral, cremation, and cemetery contractual arrangements.
Preneed Cemetery Sales Production — Sales of preneed cemetery contracts. These sales are recorded in Deferred revenue, net until the merchandise is delivered, the service is performed, or the property has been constructed and is available for interment.
Preneed Funeral Sales Production — Sales of preneed funeral trust-funded and insurance-funded contracts. Preneed funeral trust-funded contracts are recorded in Deferred revenue, net until the merchandise is delivered or the service is performed. We do not reflect the unfulfilled insurance-funded preneed funeral contract amounts in our Consolidated Balance Sheet. The proceeds of the life insurance policies will be reflected in revenue as these funerals are performed by us in the future.
Preneed Receivables, Net — Amounts due from customers when we have delivered the merchandise, performed the service, or transferred control of the cemetery property interment rights prior to a death occurring and amounts due from customers on irrevocable preneed contracts.
Travel Protection — A service provided by a third-party that provides shipment of remains to the servicing funeral home of choice if the purchaser passes away outside of a certain radius of their residence.
Trust Fund Income — Recognized investment earnings from our merchandise, service, and perpetual care trust investments.
As used herein, “SCI,” “Company,” “we,” “our,” and “us” refer to Service Corporation International and companies owned directly or indirectly by Service Corporation International, unless the context requires otherwise. Management has published a white paper on the corporate website for further understanding of accounting for preneed sales. You can view the white paper at http://investors.sci-corp.com under Featured Documents. Documents and information on our website are not incorporated by reference herein.


4 Service Corporation International

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Service Corporation International
Condensed Consolidated Statement of Operations (Unaudited)         
Three months ended September 30,Nine months ended September 30,
2024202320242023
(In thousands, except per share amounts)
Revenue
Property and merchandise revenue$504,565 $520,651 $1,549,461 $1,568,750 
Service revenue422,739 407,471 1,295,701 1,256,919 
Other revenue86,654 73,737 248,194 218,313 
Total revenue1,013,958 1,001,859 3,093,356 3,043,982 
Costs of revenue
Cost of property and merchandise(259,168)(263,251)(794,176)(795,152)
Cost of service(232,989)(225,673)(706,646)(686,705)
Overhead and other expenses(269,162)(259,252)(807,767)(757,880)
Costs of revenue(761,319)(748,176)(2,308,589)(2,239,737)
Gross profit252,639 253,683 784,767 804,245 
Corporate general and administrative expenses(43,732)(33,213)(124,055)(112,294)
Gains on divestitures and impairment charges, net3,515 2,542 4,755 10,187 
Operating income212,422 223,012 665,467 702,138 
Interest expense(65,804)(61,512)(194,540)(174,904)
Losses on early extinguishment of debt(25)— (25)(1,114)
Other income, net2,815 128 7,002 2,647 
Income before income taxes149,408 161,628 477,904 528,767 
Provision for income taxes(31,547)(39,585)(110,549)(129,543)
Net income117,861 122,043 367,355 399,224 
Net income attributable to noncontrolling interests(34)(72)(61)(302)
Net income attributable to common stockholders$117,827 $121,971 $367,294 $398,922 
Basic earnings per share: 
Net income attributable to common stockholders$0.81 $0.81 $2.53 $2.63 
Basic weighted average number of shares144,706 150,630 145,421 151,654 
Diluted earnings per share:
Net income attributable to common stockholders$0.81 $0.80 $2.50 $2.60 
Diluted weighted average number of shares146,223 152,289 146,978 153,554 
(See notes to unaudited condensed consolidated financial statements)
FORM 10-Q 5


PART I
Service Corporation International
Condensed Consolidated Statement of Comprehensive Income (Unaudited)
Three months ended September 30,Nine months ended September 30,
2024202320242023
(In thousands)
Net income$117,861 $122,043 $367,355 $399,224 
Other comprehensive income:
Foreign currency translation adjustments4,894 (9,298)(7,503)(1,215)
Total comprehensive income122,755 112,745 359,852 398,009 
Total comprehensive income attributable to noncontrolling interests(35)(69)(58)(299)
Total comprehensive income attributable to common stockholders$122,720 $112,676 $359,794 $397,710 
(See notes to unaudited condensed consolidated financial statements)
6 Service Corporation International


PART I
Service Corporation International
Condensed Consolidated Balance Sheet (Unaudited)
 September 30, 2024December 31, 2023
 (In thousands, except share amounts)
ASSETS
Current assets:  
Cash and cash equivalents$185,420 $221,557 
Receivables, net of reserves of $4,022 and $4,382, respectively
80,955 97,939 
Inventories34,571 33,597 
Income tax receivable52,487 122,183 
Other35,661 23,010 
Total current assets389,094 498,286 
Preneed receivables, net of reserves of $36,041 and $32,475, respectively, and trust investments
6,766,755 6,191,912 
Cemetery property2,113,801 2,020,846 
Property and equipment, net2,564,241 2,480,099 
Goodwill2,084,790 1,977,186 
Deferred charges and other assets, net of reserves of $2,392 and $2,345, respectively
1,324,768 1,247,830 
Cemetery perpetual care trust investments2,162,902 1,939,241 
Total assets$17,406,351 $16,355,400 
LIABILITIES & EQUITY
Current liabilities:  
Accounts payable and accrued liabilities$658,837 $685,759 
Current maturities of long-term debt84,349 63,341 
Total current liabilities743,186 749,100 
Long-term debt4,743,679 4,649,155 
Deferred revenue, net1,750,755 1,703,509 
Deferred tax liability655,486 638,106 
Other liabilities506,388 464,935 
Deferred receipts held in trust5,225,878 4,670,884 
Care trusts’ corpus2,153,178 1,938,238 
Commitments and contingencies (Note 9)
Equity:
Common stock, $1 per share par value, 500,000,000 shares authorized, 149,741,975 and 148,297,042 shares issued, respectively, and 144,979,108 and 146,323,340 shares outstanding, respectively
144,979 146,323 
Capital in excess of par value972,511 937,596 
Retained earnings492,294 432,454 
Accumulated other comprehensive income17,391 24,891 
Total common stockholders’ equity1,627,175 1,541,264 
Noncontrolling interests626 209 
Total equity1,627,801 1,541,473 
Total liabilities and equity$17,406,351 $16,355,400 
(See notes to unaudited condensed consolidated financial statements)
FORM 10-Q 7


PART I
Service Corporation International
Condensed Consolidated Statement of Cash Flows (Unaudited)
 Nine months ended September 30,
 20242023
(In thousands)
Cash flows from operating activities:  
Net income$367,355 $399,224 
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on early extinguishment of debt25 1,114 
Depreciation and amortization153,932 141,228 
Amortization of intangibles12,759 14,158 
Amortization of cemetery property70,431 71,892 
Amortization of loan costs5,365 5,133 
Provision for expected credit losses9,693 6,997 
Provision for deferred income taxes15,243 166,786 
Gains on divestitures and impairment charges, net(4,755)(10,187)
Share-based compensation12,042 11,786 
Change in assets and liabilities, net of effects from acquisitions and divestitures:
Decrease in receivables11,366 11,781 
Decrease (increase) in other assets12,464 (161,687)
Increase (decrease) in payables and other liabilities20,768 (21,961)
Effect of preneed sales production and maturities:
Increase in preneed receivables, net and trust investments(139,876)(162,087)
Increase in deferred revenue, net83,331 105,923 
Increase in deferred receipts held in trust50,652 11,358 
Net cash provided by operating activities680,795 591,458 
Cash flows from investing activities:
Capital expenditures(276,837)(267,752)
Business acquisitions, net of cash acquired(161,865)(72,535)
Real estate acquisitions(53,329)(41,084)
Proceeds from divestitures and sales of property and equipment21,632 22,713 
Payments for Company-owned life insurance policies(3,009)(8,050)
Proceeds from Company-owned life insurance policies and other2,673 10,119 
Other investing activities(13,864)— 
Net cash used in investing activities(484,599)(356,589)
Cash flows from financing activities:
Proceeds from issuance of long-term debt1,336,137 737,433 
Debt issuance costs(15,246)(7,471)
Scheduled payments of debt(18,421)(16,402)
Early payments and extinguishment of debt(1,210,024)(490,973)
Principal payments on finance leases(27,524)(25,678)
Proceeds from exercise of stock options42,898 16,106 
Purchase of Company common stock(197,511)(340,279)
Payments of dividends(130,811)(125,543)
Bank overdrafts and other(10,253)(9,362)
Net cash used in financing activities(230,755)(262,169)
Effect of foreign currency(1,566)(298)
Net decrease in cash, cash equivalents, and restricted cash(36,125)(27,598)
Cash, cash equivalents, and restricted cash at beginning of period224,761 204,524 
Cash, cash equivalents, and restricted cash at end of period$188,636 $176,926 
(See notes to unaudited condensed consolidated financial statements)
8 Service Corporation International


PART I
Service Corporation International
Condensed Consolidated Statement of Equity (Unaudited)

Common
Stock		Treasury
Stock,
Par Value		Capital in
Excess of
Par Value
Retained
Earnings		Accumulated Other
Comprehensive
Income		Noncontrolling
Interest		Total
 (In thousands, except per share amounts)
Balance at December 31, 2022$156,089 $(2,149)$958,329 $544,384 $16,538 $232 $1,673,423 
Comprehensive income— — — 144,763 299 65 145,127 
Dividends declared on common stock ($0.27 per share)
— — — (41,207)— — (41,207)
Employee share-based compensation earned— — 4,478 — — — 4,478 
Stock option exercises298 — 8,465 — — — 8,763 
Restricted stock awards, net of forfeitures132 1 (133)— — — — 
Purchase of Company common stock— (2,432)(16,500)(148,373)— — (167,305)
Noncontrolling interest payments— — — — — (107)(107)
Other— — (1,271)— — — (1,271)
Balance at March 31, 2023$156,519 $(4,580)$953,368 $499,567 $16,837 $190 $1,621,901 
Comprehensive income (loss)— — — 132,188 7,784 165 140,137 
Dividends declared on common stock ($0.27 per share)
— — — (40,780)— — (40,780)
Employee share-based compensation earned— — 3,671 — — — 3,671 
Stock option exercises232 — 5,569 — — — 5,801 
Purchase of Company common stock— (1,260)(8,603)(76,996)— — (86,859)
Noncontrolling interest payments— — — — — (101)(101)
Other24 — 1,597 — — — 1,621 
Balance at June 30, 2023$156,775 $(5,840)$955,602 $513,979 $24,621 $254 $1,645,391 
Comprehensive income (loss)— — — 121,971 (9,295)69 112,745 
Dividends declared on common stock ($0.29 per share)
— — — (43,556)— — (43,556)
Employee share-based compensation earned— — 3,637 — — — 3,637 
Stock option exercises60 — 1,482 — — — 1,542 
Purchase of Company common stock— (1,440)(9,982)(77,583)— — (89,005)
Noncontrolling interest payments— — — — — (59)(59)
Balance at September 30, 2023$156,835 $(7,280)$950,739 $514,811 $15,326 $264 $1,630,695 




FORM 10-Q 9


PART I
Service Corporation International
Condensed Consolidated Statement of Equity (Unaudited)


Common
Stock		Treasury
Stock,
Par Value		Capital in
Excess of
Par Value		 
Retained
Earnings		Accumulated Other
Comprehensive
Income 		Noncontrolling
Interest		Total
 (In thousands, except per share amounts)
Balance at December 31, 2023$148,298 $(1,975)$937,596 $432,454 $24,891 $209 $1,541,473 
Comprehensive income (loss)— — — 131,301 (8,477)(30)122,794 
Dividends declared on common stock ($0.30 per share)
— — — (43,944)— — (43,944)
Employee share-based compensation earned— — 3,926 — — — 3,926 
Stock option exercises544 — 16,693 — — — 17,237 
Restricted stock awards, net of forfeitures138 — (138)— — — — 
Purchase of Company common stock— (706)(4,518)(44,266)— — (49,490)
Other— — (1,215)— — — (1,215)
Balance at March 31, 2024$148,980 $(2,681)$952,344 $475,545 $16,414 $179 $1,590,781 
Comprehensive income (loss)— — — 118,166 (3,916)53 114,303 
Dividends declared on common stock ($0.30 per share)
— — — (43,384)— — (43,384)
Employee share-based compensation earned— — 4,040 — — — 4,040 
Stock option exercises14 — 608 — — — 622 
Purchase of Company common stock— (1,799)(12,942)(113,431)— — (128,172)
Noncontrolling interest payments— — — — — (120)(120)
Other24 — 1,596 — — — 1,620 
Balance at June 30, 2024$149,018 $(4,480)$945,646 $436,896 $12,498 $112 $1,539,690 
Comprehensive income— — — 117,827 4,893 35 122,755 
Dividends declared on common stock ($0.30 per share)
— — — (43,483)— — (43,483)
Employee share-based compensation earned— — 4,076 — — — 4,076 
Stock option exercises725 — 24,314 — — — 25,039 
Purchase of Company common stock— (284)(1,525)(18,946)— — (20,755)
Noncontrolling interest proceeds— — — — — 479 479 
Balance at September 30, 2024$149,743 $(4,764)$972,511 $492,294 $17,391 $626 $1,627,801 
(See notes to unaudited condensed consolidated financial statements)
10 Service Corporation International


PART I
Service Corporation International
Notes to Unaudited Condensed Consolidated Financial Statements
1. Nature of Operations
Service Corporation International (SCI) is a holding company and all operations are conducted by its subsidiaries. We are North America’s largest provider of deathcare products and services, with a network of funeral service locations and cemeteries operating in the United States and Canada. Our funeral service and cemetery operations consist of funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and other related businesses, which enable us to serve a wide array of customer needs. We sell cemetery property and funeral and cemetery merchandise and services at the time of need and on a preneed basis. We strive to offer families exceptional service in planning life celebrations and personalized remembrances.
Funeral service locations provide all professional services relating to funerals and cremations, including the use of funeral facilities and motor vehicles, arranging and directing services, removal, preparation, embalming, cremations, memorialization, travel protection, and catering. Funeral merchandise, including burial caskets and related accessories, urns and other cremation receptacles, outer burial containers, flowers, online and video tributes, stationery products, casket and cremation memorialization products, and other ancillary merchandise, is sold at funeral service locations.
Our cemeteries provide cemetery property interment rights, including developed lots, lawn crypts, mausoleum spaces, cremation niches, and other cremation memorialization and interment options. Cemetery merchandise and services, including cemetery markers and bases, outer burial containers, flowers and floral placement, other ancillary merchandise, graveside memorial services, merchandise installation, and interments, are sold at our cemeteries.
2. Summary of Significant Accounting Policies
Principles of Consolidation and Basis of Presentation
Our unaudited condensed consolidated financial statements include the accounts of Service Corporation International and all subsidiaries in which we hold a controlling financial interest. Intercompany balances and transactions have been eliminated in consolidation.
Our unaudited condensed consolidated financial statements also include the accounts of the merchandise, service, and cemetery perpetual care trusts in which we have a variable interest and are the primary beneficiary. We have retained the specialized industry accounting principles when consolidating the trusts. Although we consolidate the trusts, it does not change the legal relationships among the trusts, us, or our customers. The customers are the legal beneficiaries of these trusts; therefore, their interests in these trusts represent a liability to us.
Our interim condensed consolidated financial statements are unaudited but include all adjustments, consisting of normal recurring accruals and any other adjustments, which management considers necessary for a fair statement of our results for these periods. Our unaudited condensed consolidated financial statements have been prepared in a manner consistent with the accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2023, unless otherwise disclosed herein, and should be read in conjunction therewith. The accompanying year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year period. Certain reclassifications have been made to prior period amounts to conform to the current period disclosure presentation with no effect on our consolidated net income or cash flows.

Use of Estimates in the Preparation of Financial Statements
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. As a result, actual results could differ from these estimates.
Cash, Cash Equivalents, and Restricted Cash
We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. The carrying amounts of our cash and cash equivalents approximate fair value due to the short-term nature of these instruments.
FORM 10-Q 11


PART I
The components of cash, cash equivalents, and restricted cash were as follows:
September 30, 2024December 31, 2023
 (In thousands)
Cash and cash equivalents$185,420 $221,557 
Restricted cash
Included in Other current assets
384 370 
Included in Deferred charges and other assets, net
2,832 2,834 
Total restricted cash3,216 3,204 
Total cash, cash equivalents, and restricted cash$188,636 $224,761 
Receivables, net
The components of Receivables, net in our unaudited Condensed Consolidated Balance Sheet were as follows:
September 30, 2024
Atneed FuneralAtneed CemeteryMiscellaneousCurrent Portion of NotesTotal
 (In thousands)
Receivables$33,510 $19,092 $32,208 $167 $84,977 
Reserve for credit losses(1,513)(2,015)(384)(110)(4,022)
Receivables, net$31,997 $17,077 $31,824 $57 $80,955 
December 31, 2023
Atneed FuneralAtneed CemeteryMiscellaneousCurrent Portion of NotesTotal
 (In thousands)
Receivables$35,572 $19,277 $47,297 $175 $102,321 
Reserve for credit losses(1,784)(2,118)(343)(137)(4,382)
Receivables, net$33,788 $17,159 $46,954 $38 $97,939 

Additionally, included in Deferred charges and other assets, net were long-term miscellaneous receivables, net and notes receivable, net as follows:
September 30, 2024December 31, 2023
 (In thousands)
Notes receivable$10,426 $10,294 
Reserve for credit losses(1,796)(1,797)
Notes receivable, net$8,630 $8,497 
Long-term miscellaneous receivables$8,607 $7,888 
Reserve for credit losses(596)(548)
Long-term miscellaneous receivables, net$8,011 $7,340 

12 Service Corporation International


PART I
The following table summarizes the activity in our reserve for credit losses by portfolio segment, excluding preneed receivables which are presented in Note 3, for the nine months ended September 30, 2024:
December 31, 2023(Provision) Benefit for Expected Credit LossesWrite OffsRecoveriesEffect of Foreign Currency and OtherSeptember 30, 2024
 (In thousands)
Trade receivables:
Funeral$(1,784)$(3,214)$5,022 $(1,631)$94 $(1,513)
Cemetery(2,118)(557)1,145 (485)— (2,015)
Total reserve for credit losses on trade receivables$(3,902)$(3,771)$6,167 $(2,116)$94 $(3,528)
Miscellaneous receivables:
Current$(343)$(41)$— $— $— $(384)
Long-term(548)(49)1 — — (596)
Total reserve for credit losses on miscellaneous receivables$(891)$(90)$1 $— $— $(980)
Notes receivable$(1,934)$24 $1 $— $3 $(1,906)

At September 30, 2024, the amortized cost basis of our miscellaneous and notes receivables by year of origination was as follows:
20242023202220212020PriorRevolving Line of CreditTotal
 (In thousands)
Miscellaneous receivables:
Current$28,356 $2,742 $681 $401 $16 $12 $— $32,208 
Long-term3,541 2,761 1,511 674 69 51 — 8,607 
Total miscellaneous receivables$31,897 $5,503 $2,192 $1,075 $85 $63 $— $40,815 
Notes receivable$— $— $— $— $— $4,564 $6,029 $10,593 

At September 30, 2024, the payment status of our miscellaneous and notes receivables was as follows:
Past Due
<30 Days30-90 Days90-180 Days>180 DaysTotalCurrentTotal
 (In thousands)
Miscellaneous receivables:
Current$— $110 $28 $2,681 $2,819 $29,389 $32,208 
Long-term— — — — — 8,607 8,607 
Total miscellaneous receivables$— $110 $28 $2,681 $2,819 $37,996 $40,815 
Notes receivable$— $— $— $1,114 $1,114 $9,479 $10,593 

FORM 10-Q 13


PART I
Recently Issued Accounting Standards
Segments
In November 2023, the FASB amended the reportable segment guidance by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss. This new guidance also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The guidance is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted. This amendment is effective for our fiscal year ending December 31, 2024. We are currently assessing the impact of this guidance on our disclosures. Upon adoption, we will include the required disclosures in our financial statements and related notes.
Income Tax
In December 2023, the FASB amended guidance that requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The new guidance is effective on a prospective basis for annual periods beginning after December 15, 2024 and early adoption is also permitted. We are currently assessing the impact of this guidance on our disclosures. Upon adoption, we will include the required disclosures in our financial statements and related notes.
3. Preneed Activities
Preneed Receivables, Net and Trust Investments
The components of Preneed receivables, net and trust investments in our unaudited Condensed Consolidated Balance Sheet were as follows:
September 30, 2024December 31, 2023
 (In thousands)
Preneed receivables, net$1,536,200 $1,513,933 
Trust investments, at market7,154,424 6,394,796 
Insurance-backed fixed income securities and other239,033 222,424 
Trust investments7,393,457 6,617,220 
Less: Cemetery perpetual care trust investments(2,162,902)(1,939,241)
Preneed trust investments5,230,555 4,677,979 
Preneed receivables, net and trust investments$6,766,755 $6,191,912 
14 Service Corporation International


PART I
Preneed receivables, net comprised the following:
September 30, 2024
FuneralCemeteryTotal
 (In thousands)
Preneed receivables$193,636 $1,398,008 $1,591,644 
Unearned finance charges(10,709)(8,694)(19,403)
Preneed receivables, at amortized cost182,927 1,389,314 1,572,241 
Reserve for credit losses (19,548)(16,493)(36,041)
Preneed receivables, net$163,379 $1,372,821 $1,536,200 
December 31, 2023
FuneralCemeteryTotal
 (In thousands)
Preneed receivables$190,514 $1,371,804 $1,562,318 
Unearned finance charges(10,100)(5,810)(15,910)
Preneed receivables, at amortized cost180,414 1,365,994 1,546,408 
Reserve for credit losses(17,026)(15,449)(32,475)
Preneed receivables, net$163,388 $1,350,545 $1,513,933 

At September 30, 2024, the amortized cost basis of our preneed receivables by year of origination was as follows:
20242023202220212020PriorTotal
 (In thousands)
Preneed receivables, at amortized cost:
Funeral$51,950 $58,360 $31,908 $15,051 $7,457 $18,201 $182,927 
Cemetery410,033 429,934 288,226 155,323 71,924 33,874 1,389,314 
Total preneed receivables, at amortized cost$461,983 $488,294 $320,134 $170,374 $79,381 $52,075 $1,572,241 

At September 30, 2024, the payment status of our preneed receivables was as follows:
Past Due
<30 Days30-90 Days90-180 Days>180 DaysTotalCurrentTotal
 (In thousands)
Preneed receivables, at amortized cost:
Funeral$4,849 $3,278 $7,503 $30,946 $46,576 $136,351 $182,927 
Cemetery59,585 47,939 15,097 5,274 127,895 1,261,419 1,389,314 
Total preneed receivables, at amortized cost$64,434 $51,217 $22,600 $36,220 $174,471 $1,397,770 $1,572,241 
FORM 10-Q 15


PART I
The following table summarizes the activity for the reserve for credit losses on preneed receivables for the nine months ended September 30, 2024:
December 31, 2023Provision for Expected Credit LossesWrite
Offs		Effect of Foreign Currency and OtherSeptember 30, 2024
 (In thousands)
Funeral$(17,026)$(4,346)$1,770 $54 $(19,548)
Cemetery(15,449)(1,510)460 6 (16,493)
Total reserve for credit losses on preneed receivables$(32,475)$(5,856)$2,230 $60 $(36,041)

The table below sets forth certain investment-related activities associated with our trusts:

Three months ended September 30,Nine months ended September 30,
2024202320242023
 (In thousands)
Deposits$164,064 $143,148 $479,924 $434,210 
Withdrawals$161,622 $135,995 $431,816 $404,790 
Purchases of securities$350,799 $420,796 $1,433,451 $1,566,090 
Sales of securities$384,336 $375,021 $1,443,426 $1,540,936 
Realized gains from sales of securities(1)
$94,604 $51,612 $373,094 $205,493 
Realized losses from sales of securities(1)
$(31,283)$(42,316)$(88,834)$(144,562)
(1)All realized gains and losses are recognized in Other income, net for our trust investments and are offset by a corresponding reclassification in Other income, net to Deferred receipts held in trust and Care trusts’ corpus.
16 Service Corporation International


PART I
The cost and market values associated with trust investments recorded at market value are detailed below. Cost reflects the investment (net of redemptions) of control holders in the trusts. Fair value represents the value of the underlying securities held by the trusts.
 September 30, 2024
Fair Value Hierarchy LevelCostUnrealized
Gains		Unrealized
Losses		Value
  (In thousands) 
Fixed income securities:    
U.S. Treasury2$42,544 $285 $(793)$42,036 
Canadian government228,064 — — 28,064 
Corporate210,601 401 (11)10,991 
Residential mortgage-backed23,478 84 (45)3,517 
Asset-backed2290 — (47)243 
Equity securities: 
Preferred stock2413 — (46)367 
Common stock: 
United States11,888,727 624,071 (52,370)2,460,428 
Canada142,970 18,110 (394)60,686 
Other international1109,844 37,180 (6,085)140,939 
Mutual funds: 
Equity1911,579 205,067 (1,220)1,115,426 
Fixed income11,107,891 11,413 (95,064)1,024,240 
Trust investments, at fair value4,146,401 896,611 (156,075)4,886,937 
Commingled funds
Fixed income829,824 5,284 (46,085)789,023 
Equity338,774 133,326