SERVICE CORP INTERNATIONAL
For the period ended Dec 31, 2024. Filed Feb 13, 2025.
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FY2024 · Filed Feb 13, 2025
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13. Segment Reporting
- Segment Reporting
Our operations are both product-based and geography-based, and the reportable and operating segments presented below include our funeral and cemetery operations. Our geographic areas include the United States and Canada, where we conduct both funeral and cemetery operations.
Our Chief Operating Decision Maker, (CODM) is our Chief Executive officer, who is responsible for making key operating, finance, and capital allocation decisions and specifically uses segment gross profit to aid in the decision making and to assess the performance of the operating segments.
Our reportable segment information, including disaggregated revenue, was as follows and includes a reconciliation of gross profit to our consolidated income before income taxes.
FORM 10-K 75
PART II
| Years Ended December 31, | |||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| (In thousands) | |||
| Funeral revenue: | |||
| Atneed revenue | $1,185,801 | $1,185,413 | $1,242,269 |
| Matured preneed revenue | 725,810 | 715,298 | 705,273 |
| Core funeral revenue | 1,911,611 | 1,900,711 | 1,947,542 |
| Non-funeral home revenue | 94,763 | 85,904 | 76,311 |
| Non-funeral home preneed sales revenue | 104,763 | 134,770 | 146,496 |
| Core general agency and other revenue | 213,063 | 181,646 | 161,696 |
| Total funeral revenue | 2,324,200 | 2,303,031 | 2,332,045 |
| Direct cost | (344,133) | (351,327) | (360,708) |
| Selling compensation | (177,887) | (173,430) | (164,603) |
| Salaries & fringe expense | (653,753) | (636,763) | (610,170) |
| Facility expenses | (258,556) | (240,553) | (231,848) |
| Other costs and overhead | (424,609) | (403,852) | (419,023) |
| Total funeral expense | (1,858,938) | (1,805,925) | (1,786,352) |
| Funeral gross profit | $465,262 | $497,106 | $545,693 |
| Cemetery revenue: | |||
| Atneed revenue | 431,966 | 433,925 | 448,143 |
| Recognized preneed property revenue | 892,657 | 874,724 | 868,740 |
| Recognized preneed merchandise and services revenue | 402,972 | 365,018 | 338,463 |
| Core cemetery revenue | 1,727,595 | 1,673,667 | 1,655,346 |
| Other revenue | 134,584 | 123,080 | 121,270 |
| Total cemetery revenue | 1,862,179 | 1,796,747 | 1,776,616 |
| Direct cost | (258,339) | (261,826) | (243,543) |
| Selling compensation | (329,080) | (327,154) | (321,274) |
| Maintenance expense | (261,570) | (247,790) | (236,145) |
| Other costs and overhead | (387,795) | (365,276) | (366,745) |
| Total cemetery expense | (1,236,784) | (1,202,046) | (1,167,707) |
| Cemetery gross profit | $625,395 | $594,701 | $608,909 |
| Total revenue from customers | 4,186,379 | 4,099,778 | 4,108,661 |
| Total segment expenses | (3,095,722) | (3,007,971) | (2,954,059) |
| Gross profit from reportable segments | 1,090,657 | 1,091,807 | 1,154,602 |
| Corporate general and administrative expenses | (139,019) | (157,368) | (237,248) |
| Restructuring charge | (11,470) | — | — |
| (Losses) gains on divestitures and impairment charges, net | (12,488) | 9,816 | 9,962 |
| Operating income | 927,680 | 944,255 | 927,316 |
| Interest expense | (257,771) | (239,447) | (172,109) |
| Losses on early extinguishment of debt, net | (25) | (1,114) | (1,225) |
| Other income, net | 5,534 | 4,912 | 1,646 |
| Income before income taxes | $675,418 | $708,606 | $755,628 |
76 Service Corporation International
PART II
Other reportable segment information as of and for the year ended December 31 was as follows:
| Reportable Segments · Total | |||||
|---|---|---|---|---|---|
| Funeral | Cemetery | Segments | Corporate | Consolidated | |
| (In thousands) | |||||
| Interest expense | $4,073 | $893 | $4,966 | $252,805 | $257,771 |
| Depreciation and amortization | $145,759 | $51,254 | $197,013 | $11,198 | $208,211 |
| Amortization of intangibles | $10,544 | $6,670 | $17,214 | $8 | $17,222 |
| Amortization of cemetery property | $— | $102,510 | $102,510 | $— | $102,510 |
| Capital expenditures | $134,210 | $231,712 | $365,922 | $23,185 | $389,107 |
| Total assets | $6,996,897 | $9,868,033 | $16,864,930 | $514,508 | $17,379,438 |
| Interest expense | $2,092 | $764 | $2,856 | $236,591 | $239,447 |
| Depreciation and amortization | $133,544 | $46,713 | $180,257 | $11,015 | $191,272 |
| Amortization of intangibles | $12,025 | $6,706 | $18,731 | $5 | $18,736 |
| Amortization of cemetery property | $— | $101,234 | $101,234 | $— | $101,234 |
| Capital expenditures | $125,922 | $212,406 | $338,328 | $23,465 | $361,793 |
| Total assets | $6,573,950 | $9,168,173 | $15,742,123 | $613,277 | $16,355,400 |
| Interest expense | $1,734 | $493 | $2,227 | $169,882 | $172,109 |
| Depreciation and amortization | $123,165 | $41,502 | $164,667 | $10,663 | $175,330 |
| Amortization of intangibles | $11,735 | $6,620 | $18,355 | $— | $18,355 |
| Amortization of cemetery property | $— | $94,123 | $94,123 | $— | $94,123 |
| Capital expenditures | $153,224 | $196,371 | $349,595 | $20,114 | $369,709 |
Our geographic area information as of and for the year ended December 31 was as follows:
| United States | Canada | Total | |
|---|---|---|---|
| (In thousands) | |||
| Revenue from external customers | $3,967,573 | $218,806 | $4,186,379 |
| Interest expense | $257,383 | $388 | $257,771 |
| Depreciation and amortization | $196,281 | $11,930 | $208,211 |
| Amortization of intangibles | $16,996 | $226 | $17,222 |
| Amortization of cemetery property | $98,610 | $3,900 | $102,510 |
| Operating income | $871,760 | $55,920 | $927,680 |
| (Loss) gain on divestitures and impairment charges, net | $(13,471) | $983 | $(12,488) |
| Long-lived assets | $7,786,598 | $322,146 | $8,108,744 |
| Revenue from external customers | $3,881,333 | $218,445 | $4,099,778 |
| Interest expense | $239,103 | $344 | $239,447 |
| Depreciation and amortization | $180,093 | $11,179 | $191,272 |
| Amortization of intangibles | $18,495 | $241 | $18,736 |
| Amortization of cemetery property | $97,471 | $3,763 | $101,234 |
| Operating income | $887,110 | $57,145 | $944,255 |
| Gain on divestitures and impairment charges, net | $8,512 | $1,304 | $9,816 |
| Long-lived assets | $7,386,819 | $339,142 | $7,725,961 |
| Revenue from external customers | $3,876,689 | $231,972 | $4,108,661 |
| Interest expense | $171,912 | $197 | $172,109 |
| Depreciation and amortization | $165,004 | $10,326 | $175,330 |
| Amortization of intangibles | $18,080 | $275 | $18,355 |
| Amortization of cemetery property | $89,545 | $4,578 | $94,123 |
| Operating income | $856,277 | $71,039 | $927,316 |
| Gain on divestitures and impairment charges, net | $7,220 | $2,742 | $9,962 |
FORM 10-K 77
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