SERVICE CORP INTERNATIONAL
For the period ended Sep 30, 2025. Filed Oct 30, 2025.
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Sep 30, 2025 · Filed Oct 30, 2025
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11. Acquisitions and Divestiture-Related Activities
- Acquisitions and Divestiture-Related Activities
Acquisitions
We spent$65.3 million and $164.2 million, including $0.2 million and $2.3 million of cash acquired, for several business acquisitions during the nine months ended September 30, 2025 and 2024, respectively. In addition, we spent $6.6 million and $53.3 million, for several real estate acquisitions during the nine months ended September 30, 2025 and 2024, respectively.
In the third quarter of 2024, we acquired a total of 10 funeral homes and 2 cemeteries. This includes two separate acquisitions in major metropolitan markets for $120.6 million in cash in the third quarter.
The primary reasons for the acquisitions and the principal factors that contributed to the recognition of goodwill in these acquisitions were:
the acquisitions are intended to grow the company by utilizing our capital to invest in the highest relative return opportunities;
the acquisitions enhance our network footprint, enabling us to serve a number of complementary areas; and
the acquisitions of the preneed backlog of deferred revenues enhance our long-term stability.
The following table summarizes the fair values of the assets acquired and liabilities assumed in the two separate acquisitions in the third quarter of 2024 (in thousands):
26 Service Corporation International
PART II
| Other current assets | $2,201 |
|---|---|
| Cemetery property | 2,143 |
| Property and equipment, net | 51,259 |
| Preneed receivables, net and trust investments | 41,018 |
| Deferred charges and other assets | 340 |
| Cemetery perpetual care trust investments | 9,223 |
| Goodwill | 97,768 |
| Total assets acquired | 203,952 |
| Current liabilities | 2,369 |
| Deferred revenue and deferred receipts held in trust | 55,806 |
| Long-term debt | 15,431 |
| Care trusts' corpus | 9,223 |
| Other liabilities | 476 |
| Total liabilities assumed | 83,305 |
| Net assets acquired | $120,647 |
Goodwill and land recorded in the acquisition are not subject to amortization; however, goodwill will be tested periodically for impairment. Of the $97.8 million in recognized goodwill, $77.9 million is deductible for tax purposes. Of this total, $34.0 million was allocated to our cemetery segment, while $63.8 million was allocated to our funeral segment.
Divestiture-Related Activities
As divestitures occur in the course of business, gains or losses on the sale of such locations are recognized in the unaudited Condensed Consolidated Statement of Operations line item(Losses) gains on divestitures and impairment charges, net, which comprised the following:
| Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| (In thousands) | ||||
| (Losses) gains on divestitures, net | $(415) | $7,445 | $9,540 | $9,764 |
| Impairment losses | — | (3,930) | (922) | (5,009) |
| (Losses) gains on divestitures and impairment charges, net | $(415) | $3,515 | $8,618 | $4,755 |
FORM 10-Q 27
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