SERVICE CORP INTERNATIONAL
For the period ended Dec 31, 2025. Filed Feb 12, 2026.
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FY2025 · Filed Feb 12, 2026
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16. Acquisitions and Divestiture-Related Activities
PART II
- Acquisitions and Divestiture-Related Activities
Acquisitions
We spent $101.7 million and $182.9 million for several business acquisitions during the twelve months ended December 31, 2025 and 2024, respectively. This includes $0.4 million and $1.7 million of cash acquired in 2025 and 2024, respectively. In addition, we spent $18.5 million and $62.1 million for several real estate acquisitions during the twelve months ended December 31, 2025 and 2024, respectively.
In the third quarter of 2024, we acquired 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 enhance our network footprint, enabling us to serve a number of new, 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 during the year ended 2024 after measurement period adjustments (in thousands):
| 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 acquisitions are not subject to amortization; however, the 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 normal course of business, gains or losses on the sale of such locations are recognized in the Consolidated Statement of Operations line item Gains (losses) on divestitures and impairment charges, net, which consist of the following:
| Years Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| (In thousands) | |||
| Gains on divestitures, net | $9,551 | $11,337 | $12,543 |
| Impairment losses | (3,400) | (23,825) | (2,727) |
| Gains (losses) on divestitures and impairment charges, net | $6,151 | $(12,488) | $9,816 |
FORM 10-K 83
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