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 endedMARCH 31, 20232024
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.YesþNo¨
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).YesþNo¨
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 filerþAccelerated filer¨Non-accelerated filer¨Smaller reporting companyEmerging 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).YesNoþ
The number of shares outstanding of the registrant’s common stock as of May 2, 20232024 was 151,169,858145,611,533 (net of treasury shares).



SERVICE CORPORATION INTERNATIONAL
INDEX
 Page
GLOSSARY
Unaudited Condensed Consolidated Statement of Operations - Three Months Ended March 31, 20232024 & 20222023
Unaudited Condensed Consolidated Statement of Comprehensive Income - Three Months Ended March 31, 20232024 & 20222023
Unaudited Condensed Consolidated Balance Sheet - March 31, 20232024 & December 31, 20222023
Unaudited Condensed Consolidated Statement of Cash Flows - Three Months Ended March 31, 20232024 & 20222023
Results of Operations - Three Months Ended March 31, 20232024 & 20222023
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 funeral recognizednon-funeral home preneed sales revenue, GAcore 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.
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 Recognized Preneed Revenue — Funeral merchandise and travel protection, net, sold to a preneed customer and delivered before a death has occurred.
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.
Interment — The burial or final placement of human remains in the ground (interment), in mausoleums (entombment), or in niches (inurnment), or in cremation memorialization property (inurnment).
FORM 10-Q 3


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, without any additional expense to the family.residence.
Trust Fund Income — Recognized investment earnings from our merchandise and 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 March 31,
Three months ended March 31,
Three months ended March 31,
2024
2024
2024
(In thousands, except per share amounts)
(In thousands, except per share amounts)
(In thousands, except per share amounts)
Revenue
Revenue
Revenue
Property and merchandise revenue
Property and merchandise revenue
Property and merchandise revenue
Service revenue
Service revenue
Service revenue
Other revenue
Other revenue
Other revenue
Total revenue
Total revenue
Total revenue
Costs of revenue
Costs of revenue
Costs of revenue
Cost of property and merchandise
Cost of property and merchandise
Cost of property and merchandise
Cost of service
Cost of service
Cost of service
Overhead and other expenses
Overhead and other expenses
Overhead and other expenses
Costs of revenue
Costs of revenue
Costs of revenue
Gross profit
Gross profit
Gross profit
Corporate general and administrative expenses
Corporate general and administrative expenses
Corporate general and administrative expenses
(Losses) gains on divestitures and impairment charges, net
(Losses) gains on divestitures and impairment charges, net
(Losses) gains on divestitures and impairment charges, net
Three months ended March 31,
20232022
Operating income
(In thousands, except per share amounts)
Revenue
Property and merchandise revenue$515,242 $561,547 
Service revenue439,505 480,609 
Other revenue73,962 70,247 
Total revenue1,028,709 1,112,403 
Costs of revenue
Cost of property and merchandise(258,602)(260,051)
Cost of service(231,298)(219,538)
Overhead and other expenses(249,715)(255,901)
Costs of revenue(739,615)(735,490)
Gross profit289,094 376,913 
Corporate general and administrative expenses(44,160)(41,704)
Gains on divestitures and impairment charges, net691 489 
Operating income
Operating incomeOperating income245,625 335,698 
Interest expenseInterest expense(53,916)(39,028)
Interest expense
Interest expense
Losses on early extinguishment of debt
Losses on early extinguishment of debt
Losses on early extinguishment of debtLosses on early extinguishment of debt(1,060)— 
Other income, netOther income, net1,209 128 
Other income, net
Other income, net
Income before income taxesIncome before income taxes191,858 296,798 
Income before income taxes
Income before income taxes
Provision for income taxes
Provision for income taxes
Provision for income taxesProvision for income taxes(47,029)(77,231)
Net incomeNet income144,829 219,567 
Net income
Net income
Net income attributable to noncontrolling interests
Net income attributable to noncontrolling interests
Net income attributable to noncontrolling interestsNet income attributable to noncontrolling interests(66)(54)
Net income attributable to common stockholdersNet income attributable to common stockholders$144,763 $219,513 
Net income attributable to common stockholders
Net income attributable to common stockholders
Basic earnings per share:
Basic earnings per share:
Basic earnings per share:Basic earnings per share: 
Net income attributable to common stockholdersNet income attributable to common stockholders$0.95 $1.36 
Net income attributable to common stockholders
Net income attributable to common stockholders
Basic weighted average number of shares
Basic weighted average number of shares
Basic weighted average number of sharesBasic weighted average number of shares153,125 161,328 
Diluted earnings per share:Diluted earnings per share:
Diluted earnings per share:
Diluted earnings per share:
Net income attributable to common stockholders
Net income attributable to common stockholders
Net income attributable to common stockholdersNet income attributable to common stockholders$0.93 $1.34 
Diluted weighted average number of sharesDiluted weighted average number of shares155,300 163,807 
Diluted weighted average number of shares
Diluted weighted average number of shares
(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 March 31,
20232022
(In thousands)
Three months ended March 31,
Three months ended March 31,
Three months ended March 31,
2024
2024
2024
(In thousands)
(In thousands)
(In thousands)
Net income
Net income
Net incomeNet income$144,829 $219,567 
Other comprehensive income:Other comprehensive income:
Other comprehensive income:
Other comprehensive income:
Foreign currency translation adjustments
Foreign currency translation adjustments
Foreign currency translation adjustmentsForeign currency translation adjustments298 7,279 
Total comprehensive incomeTotal comprehensive income145,127 226,846 
Total comprehensive income
Total comprehensive income
Total comprehensive income attributable to noncontrolling interests
Total comprehensive income attributable to noncontrolling interests
Total comprehensive income attributable to noncontrolling interestsTotal comprehensive income attributable to noncontrolling interests(65)(54)
Total comprehensive income attributable to common stockholdersTotal comprehensive income attributable to common stockholders$145,062 $226,792 
Total comprehensive income attributable to common stockholders
Total comprehensive income attributable to common stockholders
(See notes to unaudited condensed consolidated financial statements)
6 Service Corporation International



PART I
Service Corporation International
Condensed Consolidated Balance Sheet (Unaudited)
March 31, 2023December 31, 2022 March 31, 2024December 31, 2023
(In thousands, except share amounts) (In thousands, except share amounts)
ASSETSASSETS
ASSETS
ASSETS
Current assets:
Current assets:
Current assets:Current assets:    
Cash and cash equivalentsCash and cash equivalents$157,831 $191,938 
Receivables, net of reserves of $5,112 and $6,186, respectively100,864 96,681 
Receivables, net of reserves of $4,097 and $4,382, respectively
InventoriesInventories35,200 31,740 
Income tax receivable
OtherOther32,219 39,487 
Total current assetsTotal current assets326,114 359,846 
Preneed receivables, net of reserves of $28,353 and $27,314, respectively, and trust investments5,777,597 5,577,499 
Preneed receivables, net of reserves of $34,394 and $32,475, respectively, and trust investments
Cemetery propertyCemetery property1,948,809 1,939,816 
Property and equipment, netProperty and equipment, net2,372,563 2,350,549 
GoodwillGoodwill1,948,014 1,945,588 
Deferred charges and other assets, net of reserves of $2,577 and $3,602, respectively1,196,326 1,190,426 
Deferred charges and other assets, net of reserves of $2,350 and $2,345, respectively
Cemetery perpetual care trust investmentsCemetery perpetual care trust investments1,774,489 1,702,313 
Total assetsTotal assets$15,343,912 $15,066,037 
LIABILITIES & EQUITYLIABILITIES & EQUITY
LIABILITIES & EQUITY
LIABILITIES & EQUITY
Current liabilities:
Current liabilities:
Current liabilities:Current liabilities:    
Accounts payable and accrued liabilitiesAccounts payable and accrued liabilities$659,112 $707,488 
Current maturities of long-term debtCurrent maturities of long-term debt71,358 90,661 
Income taxes payable36,929 1,131 
Total current liabilities
Total current liabilities
Total current liabilitiesTotal current liabilities767,399 799,280 
Long-term debtLong-term debt4,327,787 4,251,083 
Deferred revenue, netDeferred revenue, net1,644,714 1,624,028 
Deferred tax liabilityDeferred tax liability444,484 445,040 
Other liabilitiesOther liabilities420,685 411,376 
Deferred receipts held in trustDeferred receipts held in trust4,347,600 4,163,520 
Care trusts’ corpusCare trusts’ corpus1,769,342 1,698,287 
Commitments and contingencies (Note 9)Commitments and contingencies (Note 9)Commitments and contingencies (Note 9)
Equity:Equity:
Common stock, $1 per share par value, 500,000,000 shares authorized, 156,518,824 and 156,088,438 shares issued, respectively, and 151,939,138 and 153,940,365 shares outstanding, respectively151,939 153,940 
Common stock, $1 per share par value, 500,000,000 shares authorized, 148,979,038 and 148,297,042 shares issued, respectively, and 146,299,031 and 146,323,340 shares outstanding, respectively
Common stock, $1 per share par value, 500,000,000 shares authorized, 148,979,038 and 148,297,042 shares issued, respectively, and 146,299,031 and 146,323,340 shares outstanding, respectively
Common stock, $1 per share par value, 500,000,000 shares authorized, 148,979,038 and 148,297,042 shares issued, respectively, and 146,299,031 and 146,323,340 shares outstanding, respectively
Capital in excess of par valueCapital in excess of par value953,368 958,329 
Retained earningsRetained earnings499,567 544,384 
Accumulated other comprehensive incomeAccumulated other comprehensive income16,837 16,538 
Total common stockholders’ equityTotal common stockholders’ equity1,621,711 1,673,191 
Noncontrolling interestsNoncontrolling interests190 232 
Total equityTotal equity1,621,901 1,673,423 
Total liabilities and equityTotal liabilities and equity$15,343,912 $15,066,037 
(See notes to unaudited condensed consolidated financial statements)
FORM 10-Q 7



PART I
Service Corporation International
Condensed Consolidated Statement of Cash Flows (Unaudited)
Three months ended March 31, Three months ended March 31,
20232022 20242023
(In thousands)
(In thousands)(In thousands)
Cash flows from operating activities:Cash flows from operating activities:  Cash flows from operating activities:  
Net incomeNet income$144,829 $219,567 
Adjustments to reconcile net income to net cash provided by operating activities:Adjustments to reconcile net income to net cash provided by operating activities:
Loss on early extinguishment of debtLoss on early extinguishment of debt1,060 — 
Loss on early extinguishment of debt
Loss on early extinguishment of debt
Depreciation and amortization
Depreciation and amortization
Depreciation and amortizationDepreciation and amortization46,114 42,436 
Amortization of intangiblesAmortization of intangibles4,731 5,074 
Amortization of cemetery propertyAmortization of cemetery property20,338 24,849 
Amortization of loan costsAmortization of loan costs1,697 1,644 
Provision for expected credit lossesProvision for expected credit losses1,906 3,078 
Benefit from deferred income taxes(492)(4,580)
Gains on divestitures and impairment charges, net(691)(489)
Provision for (benefit from) deferred income taxes
Losses (gains) on divestitures and impairment charges, net
Share-based compensation
Share-based compensation
Share-based compensationShare-based compensation4,478 3,687 
Change in assets and liabilities, net of effects from acquisitions and divestitures:Change in assets and liabilities, net of effects from acquisitions and divestitures:
Change in assets and liabilities, net of effects from acquisitions and divestitures:
Change in assets and liabilities, net of effects from acquisitions and divestitures:
Decrease in receivablesDecrease in receivables8,329 5,435 
Increase in other assets(17,421)(2,714)
Increase in payables and other liabilities1,977 52,003 
Decrease in receivables
Decrease in receivables
Decrease (increase) in other assets
(Decrease) increase in payables and other liabilities
Effect of preneed sales production and maturities:Effect of preneed sales production and maturities:
Increase in preneed receivables, net and trust investments
Increase in preneed receivables, net and trust investments
Increase in preneed receivables, net and trust investmentsIncrease in preneed receivables, net and trust investments(39,923)(91,641)
Increase in deferred revenue, netIncrease in deferred revenue, net41,030 67,625 
Increase in deferred receipts held in trustIncrease in deferred receipts held in trust1,610 6,199 
Net cash provided by operating activitiesNet cash provided by operating activities219,572 332,173 
Net cash provided by operating activities
Net cash provided by operating activities
Cash flows from investing activities:Cash flows from investing activities:
Capital expenditures
Capital expenditures
Capital expendituresCapital expenditures(77,903)(56,748)
Business acquisitions, net of cash acquiredBusiness acquisitions, net of cash acquired(8,700)— 
Real estate acquisitionsReal estate acquisitions(16,666)(226)
Proceeds from divestitures and sales of property and equipmentProceeds from divestitures and sales of property and equipment9,741 2,986 
Payments for Company-owned life insurance policies
Payments for Company-owned life insurance policies
(1,366)(1,666)
Payments for Company-owned life insurance policies
Payments for Company-owned life insurance policies
Net cash used in investing activitiesNet cash used in investing activities(94,894)(55,654)
Net cash used in investing activities
Net cash used in investing activities
Cash flows from financing activities:Cash flows from financing activities:
Proceeds from issuance of long-term debt
Proceeds from issuance of long-term debt
Proceeds from issuance of long-term debtProceeds from issuance of long-term debt408,383 75,000 
Debt issuance costsDebt issuance costs(7,471)— 
Scheduled payments of debtScheduled payments of debt(5,287)(9,075)
Early payments and extinguishment of debtEarly payments and extinguishment of debt(345,073)— 
Principal payments on finance leasesPrincipal payments on finance leases(8,537)(9,059)
Proceeds from exercise of stock optionsProceeds from exercise of stock options8,763 272 
Purchase of Company common stockPurchase of Company common stock(165,950)(256,355)
Purchase of Company common stock
Purchase of Company common stock
Payments of dividendsPayments of dividends(41,207)(39,964)
Bank overdrafts and otherBank overdrafts and other(6,729)(12,517)
Bank overdrafts and other
Bank overdrafts and other
Net cash used in financing activities
Net cash used in financing activities
Net cash used in financing activitiesNet cash used in financing activities(163,108)(251,698)
Effect of foreign currencyEffect of foreign currency20 2,556 
Net (decrease) increase in cash, cash equivalents, and restricted cash(38,410)27,377 
Effect of foreign currency
Effect of foreign currency
Net decrease in cash, cash equivalents, and restricted cash
Cash, cash equivalents, and restricted cash at beginning of periodCash, cash equivalents, and restricted cash at beginning of period204,524 278,555 
Cash, cash equivalents, and restricted cash at end of periodCash, cash equivalents, and restricted cash at end of period$166,114 $305,932 
(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, 2021$166,822 $(3,708)$979,096 $727,021 $40,214 $$1,909,449 
Comprehensive income— — — 219,513 7,279 54 226,846 
Dividends declared on common stock ($0.25 per share)— — — (39,964)— — (39,964)
Employee share-based compensation earned— — 3,687 — — — 3,687 
Stock option exercises— 265 — — — 272 
Restricted stock awards, net of forfeitures147 — (147)— — — — 
Purchase of Company common stock— (4,104)(24,613)(227,638)— — (256,355)
Noncontrolling interest payments— — — — — (162)(162)
Other— — (1,127)— — — (1,127)
Balance at March 31, 2022$166,976 $(7,812)$957,161 $678,932 $47,493 $(104)$1,842,646 

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 (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 

Common
Stock
Common
Stock
Treasury
Stock,
Par Value
Capital in
Excess of
Par Value
 
Retained
Earnings
Accumulated Other
Comprehensive
Income
Noncontrolling
Interest
Total
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)
(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 
Balance at December 31, 2023
Comprehensive incomeComprehensive income— — — 144,763 299 65 145,127 
Dividends declared on common stock ($0.27 per share)— — — (41,207)— — (41,207)
Comprehensive income
Comprehensive income
Dividends declared on common stock ($0.30 per share)
Employee share-based compensation earnedEmployee share-based compensation earned— — 4,478 — — — 4,478 
Stock option exercisesStock option exercises298 — 8,465 — — — 8,763 
Restricted stock awards and units, net of forfeitures132 (133)— — — — 
Restricted stock awards, net of forfeitures
Purchase of Company common stockPurchase of Company common stock— (2,432)(16,500)(148,373)— — (167,305)
Noncontrolling interest payments— — — — — (107)(107)
OtherOther— — (1,271)— — — (1,271)
Balance at March 31, 2023$156,519 $(4,580)$953,368 $499,567 $16,837 $190 $1,621,901 
Other
Other
Balance at March 31, 2024
Balance at March 31, 2024
Balance at March 31, 2024
(See notes to unaudited condensed consolidated financial statements)
FORM 10-Q 9



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, 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 and service trusts 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, 2022,2023, 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.
10 Service Corporation International



PART I
The components of cash, cash equivalents, and restricted cash were as follows:
March 31, 2023December 31, 2022
March 31, 2024March 31, 2024December 31, 2023
(In thousands) (In thousands)
Cash and cash equivalentsCash and cash equivalents$157,831 $191,938 
Restricted cash (1)
Restricted cash (1)
Included in Other current assets
Included in Other current assets
6,076 10,379 
Included in Other current assets
Included in Other current assets
Included in Deferred charges and other assets, net
Included in Deferred charges and other assets, net
2,207 2,207 
Total restricted cashTotal restricted cash8,283 12,586 
Total cash, cash equivalents, and restricted cashTotal cash, cash equivalents, and restricted cash$166,114 $204,524 
(1)    Restricted cash in both periods primarily consists of proceeds from divestitures deposited into escrow accounts under IRS code section 1031 and collateralized obligations under certain insurance policies.
Receivables, net
The components of Receivables, net in our unaudited Condensed Consolidated Balance Sheet were as follows:
March 31, 2023
Atneed FuneralAtneed CemeteryMiscellaneousCurrent Portion of NotesTotal
March 31, 2024March 31, 2024
Atneed FuneralAtneed FuneralAtneed CemeteryMiscellaneousCurrent Portion of NotesTotal
(In thousands) (In thousands)
ReceivablesReceivables$30,615 $22,301 $52,889 $171 $105,976 
Reserve for credit lossesReserve for credit losses(2,572)(2,038)(365)(137)(5,112)
Receivables, netReceivables, net$28,043 $20,263 $52,524 $34 $100,864 
December 31, 2022
Atneed FuneralAtneed CemeteryMiscellaneousCurrent Portion of NotesTotal
December 31, 2023December 31, 2023
Atneed FuneralAtneed FuneralAtneed CemeteryMiscellaneousCurrent Portion of NotesTotal
(In thousands) (In thousands)
ReceivablesReceivables$44,417 $19,781 $38,483 $186 $102,867 
Reserve for credit lossesReserve for credit losses(3,627)(2,076)(344)(139)(6,186)
Receivables, netReceivables, net$40,790 $17,705 $38,139 $47 $96,681 

Additionally, included in Deferred charges and other assets, net were long-term miscellaneous receivables, net and notes receivable, net as follows:
March 31, 2023December 31, 2022
March 31, 2024March 31, 2024December 31, 2023
(In thousands) (In thousands)
Notes receivableNotes receivable$9,498 $9,367 
Reserve for credit lossesReserve for credit losses(1,795)(2,546)
Notes receivable, netNotes receivable, net$7,703 $6,821 
Long-term miscellaneous receivablesLong-term miscellaneous receivables$7,619 $7,993 
Long-term miscellaneous receivables
Long-term miscellaneous receivables
Reserve for credit lossesReserve for credit losses(782)(1,056)
Long-term miscellaneous receivables, netLong-term miscellaneous receivables, net$6,837 $6,937 

FORM 10-Q 11



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 three months ended March 31, 2023:2024:
December 31, 2022(Provision) benefit for Expected Credit LossesAcquisitions
(Divestitures), net
Write OffsRecoveriesEffect of Foreign Currency and OtherMarch 31, 2023
December 31, 2023
December 31, 2023
December 31, 2023(Provision) Benefit for Expected Credit LossesWrite OffsRecoveriesEffect of Foreign Currency and OtherMarch 31, 2024
(In thousands) (In thousands)
Trade receivables:Trade receivables:
Funeral
Funeral
FuneralFuneral$(3,627)$(134)$(83)$1,605 $(390)$57 $(2,572)
CemeteryCemetery(2,076)(186)— 294 (69)(1)(2,038)
Total reserve for credit losses on trade receivablesTotal reserve for credit losses on trade receivables$(5,703)$(320)$(83)$1,899 $(459)$56 $(4,610)
Miscellaneous receivables:Miscellaneous receivables:
Miscellaneous receivables:
Miscellaneous receivables:
Current
Current
CurrentCurrent$(344)$(22)$— $— $— $$(365)
Long-termLong-term(1,056)274 — — — — (782)
Total reserve for credit losses on miscellaneous receivablesTotal reserve for credit losses on miscellaneous receivables$(1,400)$252 $— $— $— $$(1,147)
Notes receivableNotes receivable$(2,685)$$— $750 $— $— $(1,932)
Notes receivable
Notes receivable

At March 31, 2023,2024, the amortized cost basis of our miscellaneous and notes receivables by year of origination was as follows:
20232022202120202019PriorRevolving Line of CreditTotal
202420242023202220212020PriorRevolving Line of CreditTotal
(In thousands) (In thousands)
Miscellaneous receivables:Miscellaneous receivables:
Current
Current
CurrentCurrent$48,972 $2,798 $601 $306 $200 $12 $— $52,889 
Long-termLong-term793 3,077 2,080 768 852 49 — 7,619 
Total miscellaneous receivablesTotal miscellaneous receivables$49,765 $5,875 $2,681 $1,074 $1,052 $61 $— $60,508 
Notes receivableNotes receivable$— $— $— $12 $— $4,730 $4,927 $9,669 
Notes receivable
Notes receivable
At March 31, 2023,2024, the payment status of our miscellaneous and notes receivables was as follows:
Past Due
<30 Days30-90 Days90-180 Days>180 DaysTotalCurrentTotal
Past Due
<30 Days
<30 Days
<30 Days30-90 Days90-180 Days>180 DaysTotalCurrentTotal
(In thousands) (In thousands)
Miscellaneous receivables:Miscellaneous receivables:
Current
Current
CurrentCurrent$— $— $316 $1,103 $1,419 $51,470 $52,889 
Long-termLong-term— — — — — 7,619 7,619 
Total miscellaneous receivablesTotal miscellaneous receivables$— $— $316 $1,103 $1,419 $59,089 $60,508 
Notes receivableNotes receivable$— $— $— $1,116 $1,116 $8,553 $9,669 
Notes receivable
Notes receivable

12 Service Corporation International



PART I
Accounting Standards Adopted in 2023
Financial Instruments
In March 2022, the Financial Accounting Standards Board (FASB) amended guidance to require public companies to disclose the vintage year of receivable write-offs during the reporting period. We adopted the amended guidance in 2023 with no impact on our consolidated results of operations, consolidated financial position, and cash flows. As receivable write-offs in the first quarter of 2023 were immaterial, we have not included the vintage year disclosure in this filing. We will add the vintage year disclosure in future filings for periods in which receivable write-offs are material, if any.
Recently Issued Accounting Standards
InvestmentsSegments
In MarchNovember 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 additional disclosures in our financial statements and related notes.
Income Tax
In December 2023, the FASB amended guidance for equity investments made primarily for the purpose of receivingthat requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income tax credits and other income tax benefits. The amended guidance expands the option to use the proportional amortization method from investments in low-income-housing tax credit structures to all tax credit structures that meet certain requirements. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the investment amortization and the income tax credits presented net in the statement of operations as a component of income tax expense.taxes paid. The new guidance is effective as of January 1,on a prospective basis for annual periods beginning after December 15, 2024 withand early adoption is also permitted. We are still evaluatingcurrently assessing the impact of thethis guidance on our consolidated results of operations, consolidateddisclosures. Upon adoption, we will include the additional disclosures in our financial position,statements and cash flows.
Leases
In March 2023, the FASB amended guidance on determining the useful life of leasehold improvements associated with a lease between related parties under common control. The amended guidance requires that the leasehold improvements be amortized over the useful life of the improvements to the common control group as a whole. The new guidance is effective for us on January 1, 2024 and is not expected to have any impact on our consolidated results of operations, consolidated financial position, and cash flows.
Fair Value Measurements
In June 2022, the FASB amended guidance to clarify that the fair value of investments in equity instruments with contractual sale restrictions should not be discounted as a result of the contractual restrictions. Additionally, the new guidance mandated disclosure of the fair value of any such securities, a description of the nature and duration of the restrictions, and circumstances that could cause a lapse in the restrictions. The new guidance is effective for us beginning with valuations that occur after January 1, 2024 and is not expected to have any impact on our consolidated results of operations, consolidated financial position, and cash flows.

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:
March 31, 2023December 31, 2022
March 31, 2024
March 31, 2024
March 31, 2024December 31, 2023
(In thousands) (In thousands)
Preneed receivables, netPreneed receivables, net$1,416,722 $1,402,209 
Trust investments, at marketTrust investments, at market5,924,847 5,663,163 
Trust investments, at market
Trust investments, at market
Insurance-backed fixed income securities and other
Insurance-backed fixed income securities and other
Insurance-backed fixed income securities and otherInsurance-backed fixed income securities and other210,517 214,440 
Trust investmentsTrust investments6,135,364 5,877,603 
Less: Cemetery perpetual care trust investmentsLess: Cemetery perpetual care trust investments(1,774,489)(1,702,313)
Preneed trust investmentsPreneed trust investments4,360,875 4,175,290 
Preneed receivables, net and trust investmentsPreneed receivables, net and trust investments$5,777,597 $5,577,499 
Preneed receivables, net and trust investments
Preneed receivables, net and trust investments

FORM 10-Q 13



PART I
Preneed receivables, net comprised the following:
March 31, 2023
FuneralCemeteryTotal
March 31, 2024March 31, 2024
FuneralFuneralCemeteryTotal
(In thousands) (In thousands)
Preneed receivablesPreneed receivables$188,504 $1,274,375 $1,462,879 
Unearned finance chargesUnearned finance charges(10,837)(6,967)(17,804)
Preneed receivables, at amortized costPreneed receivables, at amortized cost177,667 1,267,408 1,445,075 
Reserve for credit lossesReserve for credit losses(15,148)(13,205)(28,353)
Preneed receivables, netPreneed receivables, net$162,519 $1,254,203 $1,416,722 
December 31, 2022
FuneralCemeteryTotal
December 31, 2023
December 31, 2023
December 31, 2023
FuneralFuneralCemeteryTotal
(In thousands) (In thousands)
Preneed receivablesPreneed receivables$180,108 $1,267,304 $1,447,412 
Unearned finance chargesUnearned finance charges(11,129)(6,760)(17,889)
Preneed receivables, at amortized costPreneed receivables, at amortized cost168,979 1,260,544 1,429,523 
Reserve for credit lossesReserve for credit losses(14,438)(12,876)(27,314)
Preneed receivables, netPreneed receivables, net$154,541 $1,247,668 $1,402,209 

At March 31, 2023,2024, the amortized cost basis of our preneed receivables by year of origination was as follows:
20232022202120192018PriorTotal
2024
2024
20242023202220212020PriorTotal
(In thousands) (In thousands)
Preneed receivables, at amortized cost:Preneed receivables, at amortized cost:
FuneralFuneral$28,445 $67,155 $38,001 $18,284 $10,092 $15,690 $177,667 
Funeral
Funeral
CemeteryCemetery124,775 505,146 332,591 179,554 74,933 50,409 1,267,408 
Total preneed receivables, at amortized costTotal preneed receivables, at amortized cost$153,220 $572,301 $370,592 $197,838 $85,025 $66,099 $1,445,075 

At March 31, 2023,2024, the payment status of our preneed receivables was as follows:
Past Due
<30 Days30-90 Days90-180 Days>180 DaysTotalCurrentTotal
Past Due
<30 Days
<30 Days
<30 Days30-90 Days90-180 Days>180 DaysTotalCurrentTotal
(In thousands) (In thousands)
Preneed receivables, at amortized cost:Preneed receivables, at amortized cost:
FuneralFuneral$3,244 $2,845 $2,249 $23,166 $31,504 $146,163 $177,667 
Funeral
Funeral
CemeteryCemetery38,257 27,650 5,871 2,775 74,553 1,192,855 1,267,408 
Total preneed receivables, at amortized costTotal preneed receivables, at amortized cost$41,501 $30,495 $8,120 $25,941 $106,057 $1,339,018 $1,445,075 
14 Service Corporation International



PART I
The following table summarizes the activity for the reserve for credit losses on preneed receivables for the three months ended March 31, 2023:2024:
December 31, 2023
December 31, 2022Provision for Expected Credit LossesWrite-OffsEffect of Foreign CurrencyMarch 31, 2023
December 31, 2023
December 31, 2023Provision for Expected Credit LossesWrite
Offs
Effect of Foreign Currency and OtherMarch 31, 2024
(In thousands) (In thousands)
FuneralFuneral$(14,438)$(1,300)$590 $— $(15,148)
CemeteryCemetery(12,876)(541)209 (13,205)
Total reserve for credit losses on preneed receivablesTotal reserve for credit losses on preneed receivables$(27,314)$(1,841)$799 $$(28,353)

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

Three months ended March 31,
20232022
Three months ended March 31,
Three months ended March 31,
Three months ended March 31,
202420242023
(In thousands) (In thousands)
DepositsDeposits$137,245 $127,972 
WithdrawalsWithdrawals$124,245 $122,364 
Purchases of securitiesPurchases of securities$607,476 $469,312 
Sales of securitiesSales of securities$630,740 $394,424 
Realized gains from sales of securities(1)
Realized gains from sales of securities(1)
$82,330 $103,555 
Realized losses from sales of securities(1)
Realized losses from sales of securities(1)
$(49,910)$(27,932)
(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.

FORM 10-Q 15



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.
March 31, 2023 March 31, 2024
Fair Value Hierarchy LevelCostUnrealized
Gains
Unrealized
Losses
Value
Fair Value Hierarchy LevelFair Value Hierarchy LevelCostUnrealized
Gains
Unrealized
Losses
Value
 (In thousands)   (In thousands) 
Fixed income securities:Fixed income securities:    Fixed income securities: 
U.S. TreasuryU.S. Treasury2$45,239 $37 $(1,749)$43,527 
Canadian governmentCanadian government233,130 — — 33,130 
CorporateCorporate2175 — (18)157 
Residential mortgage-backedResidential mortgage-backed25,485 23 (111)5,397 
Asset-backedAsset-backed2293 — (51)242 
Equity securities:Equity securities: Equity securities: 
Preferred stockPreferred stock24,196 — (2,062)2,134 
Common stock:Common stock: Common stock: 
United StatesUnited States11,765,274 293,953 (155,781)1,903,446 
CanadaCanada150,325 14,876 (6,962)58,239 
Other internationalOther international197,626 12,049 (10,055)99,620 
Mutual funds:Mutual funds: Mutual funds: 
EquityEquity1916,174 82,279 (77,552)920,901 
Fixed incomeFixed income11,098,174 1,776 (140,387)959,563 
Trust investments, at fair valueTrust investments, at fair value4,016,091 404,993 (394,728)4,026,356 
Trust investments, at fair value
Trust investments, at fair value
Commingled fundsCommingled funds
Fixed income
Fixed income
Fixed incomeFixed income733,119 — (76,465)656,654 
EquityEquity306,512 67,597 (1,130)372,979 
Money market fundsMoney market funds345,577 — — 345,577 
Alternative investmentsAlternative investments372,793 154,721 (4,233)523,281 
Trust investments, at net asset valueTrust investments, at net asset value1,758,001 222,318 (81,828)1,898,491 
Trust investments, at marketTrust investments, at market$5,774,092 $627,311 $(476,556)$5,924,847 
16 Service Corporation International



PART I
December 31, 2022 December 31, 2023
Fair Value Hierarchy LevelCostUnrealized
Gains
Unrealized
Losses
Value
Fair Value Hierarchy LevelFair Value Hierarchy LevelCostUnrealized
Gains
Unrealized
Losses
Value
 (In thousands)   (In thousands) 
Fixed income securities:Fixed income securities:    Fixed income securities: 
U.S. TreasuryU.S. Treasury2$45,084 $22 $(2,033)$43,073 
Canadian governmentCanadian government230,200 — — 30,200 
CorporateCorporate2175 — (18)157 
Residential mortgage-backedResidential mortgage-backed21,420 — (101)1,319 
Asset-backedAsset-backed2294 — (52)242 
Equity securities:Equity securities: Equity securities: 
Preferred stockPreferred stock24,144 — (2,340)1,804 
Common stock:Common stock: Common stock: 
United StatesUnited States11,707,240 283,423 (208,523)1,782,140 
CanadaCanada147,821 11,765 (11,117)48,469 
Other internationalOther international1123,440 10,561 (19,009)114,992 
Mutual funds:Mutual funds: Mutual funds: 
EquityEquity1917,686 64,895 (112,374)870,207 
Fixed incomeFixed income11,135,815 1,231 (166,286)970,760 
Trust investments, at fair valueTrust investments, at fair value4,013,319 371,897 (521,853)3,863,363 
Trust investments, at fair value
Trust investments, at fair value
Commingled fundsCommingled funds
Fixed income
Fixed income
Fixed incomeFixed income730,940 (89,246)641,696 
EquityEquity309,893 40,820 (3,846)346,867 
Money market fundsMoney market funds325,562 — — 325,562 
Alternative investmentsAlternative investments307,275 179,491 (1,091)485,675 
Trust investments, at net asset valueTrust investments, at net asset value1,673,670 220,313 (94,183)1,799,800 
Trust investments, at marketTrust investments, at market$5,686,989 $592,210 $(616,036)$5,663,163 
Our alternative investments include funds invested in limited partnerships with interests in private equity, private market real estate, energy and natural resources, infrastructure, transportation, and private debt including both distressed debt and mezzanine financing. These investments can never be redeemed by the funds. Instead, due to the nature of the investments in this category, distributions are received through the liquidation of the underlying assets of the funds. The funds' managers have not communicated the timing of any liquidations.
Maturity dates of our fixed income securities range from 20232024 to 2040. Maturities of fixed income securities (excluding mutual and commingled funds) at March 31, 20232024 are estimated as follows:
 Fair Value
 (In thousands)
Due in one year or less$55,27453,339 
Due in one to five years19,78029,654 
Due in five to ten years7,2896,003 
Thereafter11084 
Total estimated maturities of fixed income securities$82,45389,080 

Recognized trust fund income (realized and unrealized) related to our preneed trust investments was $36.0$42.7 million and $45.9$36.0 million for the three months ended March 31, 20232024 and 2022,2023, respectively. Recognized trust fund income (realized and unrealized) related to our cemetery perpetual care trust investments was $22.0$23.3 million and $24.4$22.0 million for the three months ended March 31, 20232024 and 2022,2023, respectively.
FORM 10-Q 17



PART I
Deferred Revenue, Net
Deferred revenue, net represents future revenue, including distributed trust investment earnings associated with unperformed trust-funded preneed contracts that are not held in trust accounts. Future revenue and net trust investment earnings that are held in trust accounts are included in Deferred receipts held in trust.
The components of Deferred revenue, net in our unaudited Condensed Consolidated Balance Sheet were as follows:
March 31, 2024
March 31, 2024
March 31, 2024
March 31, 2023December 31, 2022
(In thousands)(In thousands)
Deferred revenueDeferred revenue$2,515,817 $2,472,693 
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contractsAmounts due from customers for unfulfilled performance obligations on cancelable preneed contracts(871,103)(848,665)
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts
Deferred revenue, netDeferred revenue, net$1,644,714 $1,624,028 
Deferred revenue, net
Deferred revenue, net
The following table summarizes the activity for our contract liabilities, which are reflected in Deferred revenue, net and Deferred receipts held in trust:
Three months ended March 31,
20232022
Three months ended March 31,Three months ended March 31,
202420242023
(In thousands) (In thousands)
Beginning balance — Deferred revenue, net and Deferred receipts held in trust
Beginning balance — Deferred revenue, net and Deferred receipts held in trust
$5,787,548 $6,299,240 
Net preneed contract salesNet preneed contract sales364,463 391,243 
Acquisitions (dispositions) of businesses, netAcquisitions (dispositions) of businesses, net2,904 269 
Net investment gains (losses)(1)
Net investment gains (losses)(1)
178,220 (201,580)
Recognized revenue from backlog(2)
Recognized revenue from backlog(2)
(180,172)(176,913)
Recognized revenue from current period salesRecognized revenue from current period sales(137,324)(138,905)
Change in amounts due on unfulfilled performance obligationsChange in amounts due on unfulfilled performance obligations(22,519)(36,201)
Change in cancellation reserveChange in cancellation reserve26 (146)
Effect of foreign currency and otherEffect of foreign currency and other(832)4,972 
Ending balance — Deferred revenue, net and Deferred receipts held in trust
Ending balance — Deferred revenue, net and Deferred receipts held in trust
$5,992,314 $6,141,979 
(1)Includes both realized and unrealized investment gains (losses)
(2)Includes current year trust fund income through the date of performance.
18 Service Corporation International



PART II
4. Income Taxes
Income tax expense during interim periods is based on our estimated annual effective income tax rate plus any discrete items, which are recorded in the period in which they occur. Discrete items include, among others, events such as changes in estimates due to the finalization of tax returns, tax audit settlements, expiration of statutes of limitation, and increases or decreases in valuation allowances on deferred tax assets. Our effective tax rate was 24.5%22.9% and 26.0%24.5% for the three months ended March 31, 20232024 and 2022,2023, respectively. The lower effective tax rate for the three months ended March 31, 20232024 was primarily due to greateran increase in excess tax benefits recognized on the settlement of employee share-based awards.awards, which decreased tax expense during the quarter. The effective tax rate for the three months ended March 31, 20232024 was higher than the federal statutory tax rate of 21.0% primarily due to state tax expense.
Unrecognized Tax Benefits
As of March 31, 2023,2024, the total amount of our unrecognized tax benefits was $1.3 million and the total amount of our accrued interest was $0.9approximately $1.0 million.
The federal statutes of limitation have expired for all tax years prior to 2019,2020, and we are not currently under audit by the IRS. However, pursuant to the 2017 Tax Cuts and Jobs Act, the statute of limitations on the transition tax for the 2017 tax year does not expire until September 2024. Various state jurisdictions are auditing years 2013 through 2020.2021. There are currently no federal or provincial audits in Canada; however, years subsequent to 20162018 remain open and could be subject to examination. We believe that it is reasonably possible that the recorded amount of gross unrecognized tax benefits may decrease by $1.3 million within the next twelve months as a result of concluding various state tax matters.
5. Debt
The components of Debt are:
March 31, 2023December 31, 2022
March 31, 2024March 31, 2024December 31, 2023
(In thousands) (In thousands)
7.5% Senior Notes due April 20277.5% Senior Notes due April 2027$138,274 $138,274 
4.625% Senior Notes due December 20274.625% Senior Notes due December 2027550,000 550,000 
5.125% Senior Notes due June 20295.125% Senior Notes due June 2029750,000 750,000 
3.375% Senior Notes due August 20303.375% Senior Notes due August 2030850,000 850,000 
4.0% Senior Notes due May 20314.0% Senior Notes due May 2031800,000 800,000 
Term Loan due May 2024— 536,250 
Term Loan due January 2028Term Loan due January 2028670,781 — 
Bank Credit Facility due May 2024— 570,000 
Term Loan due January 2028
Term Loan due January 2028
Bank Credit Facility due January 2028
Bank Credit Facility due January 2028
Bank Credit Facility due January 2028Bank Credit Facility due January 2028490,000 — 
Obligations under finance leasesObligations under finance leases119,807 120,837 
Mortgage notes and other debt, maturities through 2050Mortgage notes and other debt, maturities through 205070,179 66,248 
Unamortized debt issuance costsUnamortized debt issuance costs(39,896)(39,865)
Unamortized debt issuance costs
Unamortized debt issuance costs
Total debtTotal debt4,399,145 4,341,744 
Less: Current maturities of long-term debtLess: Current maturities of long-term debt(71,358)(90,661)
Total long-term debtTotal long-term debt$4,327,787 $4,251,083 
Current maturities of debt at March 31, 20232024 include amounts due under our term loan, mortgage notes and other debt, and finance lease payments due within the next year as well as the portion of unamortized debt issuance costs expected to be recognized in the next twelve months.
Approximately, 71% and 72%69% of our total debt had a fixed interest rate at March 31, 20232024 and December 31, 2022,2023, respectively.

The components of our interest rate are as follows:
March 31, 2024December 31, 2023
Fixed Debt4.36 %4.35 %
Floating Debt7.41 %7.44 %
Total Debt5.29 %5.29 %
During the three months ended March 31, 2024 and 2023, we paid $43.8 million and $29.6 million in cash interest, respectively.
FORM 10-Q 19



PART I
The components of our weighted average interest rate are as follows:
March 31, 2023December 31, 2022
Fixed Debt4.32 %4.32 %
Floating Debt6.45 %2.95 %
Total Debt4.93 %4.00 %
During the three months ended March 31, 2023 and 2022, we paid $29.6 million and $17.7 million in cash interest, respectively.
Bank Credit Agreement
In January 2023, we amended our $1.650 billion credit agreement due May 2024 to enter into a new $2.175 billion bank credit agreement due January 2028 with a syndicate of banks. The $2.175 billion bank credit agreement comprises a $1.5 billion Bank Credit Facility, including a sublimit of $100.0 million for letters of credit and a $675.0 million Term Loan, both due January 2028. As a result of the new agreement, we netted to a $138.8 million increase in our outstanding Term Loan balance. We also netted to a $155.0 million decrease in our outstanding Bank Credit Facility balance.

The Bank Credit Facility due January 2028 provides us with flexibility for working capital, if needed, and is guaranteed by a majority of our domestic subsidiaries. The subsidiary guaranty is a guaranty of payment of the outstanding amount of the total lending commitment, including letters of credit. The Bank Credit Facility contains a maximum leverage ratio financial covenant and certain dividend and share repurchase restrictions. As of March 31, 2023,2024, we were in compliance with all of our debt covenant.covenants. We issued $33.5have $39.0 million of letters of credit outstanding and pay a quarterly fee on the unused commitment which was 0.15%of 0.20% at March 31, 2023.2024. As of March 31, 2023,2024, we had $976.5$706.0 million in borrowing capacity under the Bank Credit Facility. The Bank Credit Facility had an interest rate of 6.78%7.43% and 5.64%7.46% at March 31, 20232024 and December 31, 2022,2023, respectively.
Subsequent to
Debt Issuances and Additions
During the three months ended March 31, 2023,2024, we increased our outstanding borrowings by $75.0drew $115.0 million to $565.0 million underon our Bank Credit Facility due January 2028.
Debt Issuances and Additions2028 for general corporate purposes.
During the three months ended March 31, 2023, we issued or added $408.4 million of debt including:
$284.1 million in proceeds from certain members of the syndicate of banks in our Term Loan;
$65.0 million on our Bank Credit Facility due January 2028;
$44.3 million in proceeds from certain members of the syndicate of banks in our Bank Credit Facility;
$10.0 million on our Bank Credit Facility due May 2024; and
$5.0 million in other debt.
Net proceeds from newly issued debt during the three months ended March 31, 2023 were used to pay downoff our Bank Credit Facility due May 2024 and Term Loan due May 2024, and for general corporate purposes. These transactions resulted in additional debt issuance costs of $7.5 million.
Debt Extinguishments and Reductions
During the three months ended March 31, 2022,2024, we drew $75.0made aggregate debt payments of $155.8 million onfor scheduled and early debt extinguishment payments including:
$150.0 million in aggregate principal of our Bank Credit Facility due May 2024 for general corporate purposes.January 2028;
Debt Extinguishments and Reductions$4.2 million in aggregate principal of our Term Loan due January 2028;
$1.6 million in other debt.
During the three months ended March 31, 2023, we made aggregate debt payments of $350.4 million for scheduled and early debt extinguishment payments including:
$199.3 million in aggregate principal payments to other members of our Bank Credit Facility;
$145.3 million in aggregate principal payments to other members of our Term Loan;
$4.2 million in aggregate principal of our Term Loan due January 2028;
$0.4 million of premiums paid on early extinguishment of debt; and
$1.2 million in other debt.
Certain of the above transactions resulted in the recognition of a loss of $1.1 million recorded in Losses on early extinguishment of debt in our Consolidated Statement of Operations for the three months ended March 31, 2023.
20 Service Corporation International



PART I
During the three months ended March 31, 2022, we made aggregate debt payments of $9.1 million for scheduled and early debt extinguishment payments including:
$8.1 million in aggregate principal of our Term Loan due May 2024; and
$1.0 million in other debt.
6. Credit Risk and Fair Value of Financial Instruments
Fair Value Estimates
The fair value estimates of the following financial instruments have been determined using available market information and appropriate valuation methodologies. The carrying values of cash and cash equivalents, trade receivables, and trade payables approximate the fair values of those instruments due to the short-term nature of the instruments. The carrying values of receivables on preneed funeral and cemetery contracts approximate fair value as the terms and conditions of these contracts are comparable to our current contract offerings.
20 Service Corporation International



PART I
The fair value of our debt instruments was as follows:
March 31, 2023December 31, 2022
March 31, 2024March 31, 2024December 31, 2023
(In thousands) (In thousands)
7.5% Senior Notes due April 20277.5% Senior Notes due April 2027$145,533 $141,499 
4.625% Senior Notes due December 20274.625% Senior Notes due December 2027529,760 513,909 
5.125% Senior Notes due June 20295.125% Senior Notes due June 2029724,508 709,125 
3.375% Senior Notes due August 20303.375% Senior Notes due August 2030727,549 702,202 
4.0% Senior Notes due May 20314.0% Senior Notes due May 2031706,000 685,680 
Term Loan due May 2024— 536,250 
Term Loan due January 2028Term Loan due January 2028670,781 — 
Bank Credit Facility due May 2024— 570,000 
Bank Credit Facility due January 2028Bank Credit Facility due January 2028490,000 — 
Mortgage notes and other debt, maturities through 2050Mortgage notes and other debt, maturities through 205067,643 63,168 
Total fair value of debt instrumentsTotal fair value of debt instruments$4,061,774 $3,921,833 
The fair values of our long-term, fixed rate loans were estimated using market prices for those loans, and therefore they are classified within Level 2 of the fair value measurements hierarchy. The Term Loan, Bank Credit Facility, and the mortgage and other debt are classified within Level 3 of the fair value measurements hierarchy. The fair values of these instruments have been estimated using discounted cash flow analysis based on our incremental borrowing rate for similar borrowing arrangements. An increase (decrease) in the inputs results in a directionally opposite change in the fair value of the instruments.
7. Equity
(All shares reported in whole numbers)
Share Repurchase Program
Subject to market conditions, normal trading restrictions, and limitations in our debt covenants, we may make purchases of our Common stock in the open market or through privately negotiated transactions under our share repurchase program. During the three months ended March 31, 2023,2024, we repurchased 2,432,483706,305 shares of common stock at an aggregate cost of $167.3$49.5 million, which is an average cost per share of $68.78. After$70.08. After these repurchases, the remaining dollar value of shares authorized to be purchased under the share repurchase program was $421.6$479.0 million at March 31, 2023.2024.
Subsequent to March 31, 2023,2024, we repurchased 768,901687,168 shares for $53.9$48.7 million at an average cost per share of $70.10.$70.91. After these repurchases, the remaining dollar value of shares authorized to be purchased under the share repurchase program is $367.7$430.3 million.
FORM 10-Q 21



PART I
8. Segment Reporting
Our operations are both product-based and geographically-based, and the reportable 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 reportable segment information, including disaggregated revenue, was as follows and includes a reconciliation of gross profit to our consolidated income before income taxes.
Three months ended March 31,
20232022
(In thousands)
Three months ended March 31,
Three months ended March 31,
Three months ended March 31,
2024
2024
2024
(In thousands)
(In thousands)
(In thousands)
Revenue from customers:
Revenue from customers:
Revenue from customers:Revenue from customers:
Funeral revenue:Funeral revenue:
Funeral revenue:
Funeral revenue:
Atneed revenue
Atneed revenue
Atneed revenueAtneed revenue$313,240 $353,369 
Matured preneed revenueMatured preneed revenue185,709 194,927 
Matured preneed revenue
Matured preneed revenue
Core funeral revenue
Core funeral revenue
Core funeral revenueCore funeral revenue498,949 548,296 
Non-funeral home revenueNon-funeral home revenue21,209 20,810 
Recognized preneed revenue46,426 43,122 
Other revenue43,125 36,869 
Non-funeral home revenue
Non-funeral home revenue
Non-funeral home preneed sales revenue
Non-funeral home preneed sales revenue
Non-funeral home preneed sales revenue
Core general agency and other revenue
Core general agency and other revenue
Core general agency and other revenue
Total funeral revenue
Total funeral revenue
Total funeral revenueTotal funeral revenue609,709 649,097 
Cemetery revenue:Cemetery revenue:
Cemetery revenue:
Cemetery revenue:
Atneed revenueAtneed revenue110,274 123,389 
Atneed revenue
Atneed revenue
Recognized preneed property revenue
Recognized preneed property revenue
Recognized preneed property revenueRecognized preneed property revenue191,729 221,539 
Recognized preneed merchandise and services revenueRecognized preneed merchandise and services revenue86,160 85,000 
Recognized preneed merchandise and services revenue
Recognized preneed merchandise and services revenue
Core cemetery revenue
Core cemetery revenue
Core cemetery revenueCore cemetery revenue388,163 429,928 
Other revenueOther revenue30,837 33,378 
Other revenue
Other revenue
Total cemetery revenue
Total cemetery revenue
Total cemetery revenueTotal cemetery revenue419,000 463,306 
Total revenue from customersTotal revenue from customers$1,028,709 $1,112,403 
Total revenue from customers
Total revenue from customers
Gross profit:
Gross profit:
Gross profit:Gross profit:
Funeral gross profitFuneral gross profit$149,466 $195,983 
Funeral gross profit
Funeral gross profit
Cemetery gross profit
Cemetery gross profit
Cemetery gross profitCemetery gross profit139,628 180,930 
Gross profit from reportable segmentsGross profit from reportable segments289,094 376,913 
Gross profit from reportable segments
Gross profit from reportable segments
Corporate general and administrative expensesCorporate general and administrative expenses(44,160)(41,704)
Gains on divestitures and impairment charges, net691 489 
Corporate general and administrative expenses
Corporate general and administrative expenses
(Losses) gains on divestitures and impairment charges, net
(Losses) gains on divestitures and impairment charges, net
(Losses) gains on divestitures and impairment charges, net
Operating income
Operating income
Operating incomeOperating income245,625 335,698 
Interest expenseInterest expense(53,916)(39,028)
Interest expense
Interest expense
Losses on early extinguishment of debt
Losses on early extinguishment of debt
Losses on early extinguishment of debtLosses on early extinguishment of debt(1,060)— 
Other income, netOther income, net1,209 128 
Other income, net
Other income, net
Income before income taxesIncome before income taxes$191,858 $296,798 
Income before income taxes
Income before income taxes
Our geographic area information was as follows:
United StatesCanadaTotal
United StatesUnited StatesCanadaTotal
(In thousands) (In thousands)
Three months ended March 31,Three months ended March 31,   
Three months ended March 31,
Three months ended March 31,  
Revenue from external customers:Revenue from external customers:
2024
2024
2024
20232023$971,509 $57,200 $1,028,709 
2022$1,050,620 $61,783 $1,112,403 
22 Service Corporation International



PART I
9. Commitments and Contingencies
Insurance Loss Reserves
We purchase comprehensive general liability, morticians and cemetery professional liability, automobile liability, and workers’ compensation insurance coverage structured with high deductibles. The high-deductible insurance program means we are primarily self-insured for claims and associated costs and losses covered by these policies. As of March 31, 20232024 and December 31, 2022,2023, we had self-insurance reserves of $99.8$106.2 million and $99.3$103.3 million, respectively.
Litigation and Regulatory Matters
We are a party to various litigation and regulatory matters, investigations, and proceedings. Some of the more frequent routine litigations incidental to our business are based on burial practices claims and employment-related matters, including discrimination, harassment, and wage and hour laws and regulations. For each of our outstanding legal matters, we evaluate the merits of the case, our exposure to the matter, possible legal or settlement strategies, and the likelihood of an unfavorable outcome. We intend to vigorously defend ourselves in the matters described herein; however, if we determine that an unfavorable outcome is probable and can be reasonably estimated, or if we determine an amount for which we would be willing to settle the matter to avoid further costs and risk, we establish the necessary accruals. We hold certain insurance policies that may reduce cash outflows with respect to an adverse outcome of certain of these matters. We accrue such insurance recoveries when they become probable of being paid and can be reasonably estimated.
Wage and Hour Claims. We are named as a defendant in various lawsuits alleging violations of federal and state laws regulating wage and hour pay, including but not limited to the Fredeen lawsuit described below.
Lisa Fredeen, an aggrieved employee and on behalf of other aggrieved employees v. California Cemetery and Funeral Services, LLC, et al; Case No. BC706930; in the Superior Court of the State of California for the County of Los Angeles. This lawsuit was filed against SCI subsidiaries on May 18, 2018 and purports to be brought on behalf of the defendants' current and former non-exempt California employees during the four years preceding the filing of the complaint. This lawsuit asserts numerous claims for alleged wage and hour pay violations under the California Labor Code and the California Private Attorneys General Act. The plaintiff seeks unpaid wages, compensatory and punitive damages, civil penalties, attorneys’ fees and costs, and interest. Given the nature of this lawsuit, we are unable to reasonably estimate the possible loss or ranges of loss, if any.
Operational Claims. We are named as a defendant in various lawsuits alleging operational claims, including but not limited to the State of California and Taylor lawsuits described below.
The People of the State of California v. Service Corporation International, a Texas corporation, SCI Direct, Inc. a Florida Corporation, S.E. Acquisition of California, Inc., a California corporation dba Neptune Society of Northern California, Neptune Management Corp., a California corporation, Trident Society, Inc. a California corporation, and Does 1 through 100, inclusive, Case No. RG 19045103; in the Superior Court of the State of California in and for the County of Alameda. In July 2019, we received a letter from the Attorney General, State of California, Department of Justice (“CAAG") alleging that the allocation of prices among certain of our cremation service contracts and cremation merchandise contracts, and the related preneed trust funding, violates section 7735 of the California Business and Professions Code and that provisions of these same contracts constitute false advertising and deceptive sales practices in violation of California consumer protection laws. On November 21, 2019, we filed a complaint, S.E. Combined Services of California, Inc., a California Corporation dba Neptune Society of Northern California, Neptune Management Corp. a California Corporation, and Trident Society, Inc. v. Xavier Becerra, Attorney General of the State of California, and Does 1-50, Case No. 34-2019-00269617; in the Sacramento County Superior Court seeking declaratory relief holding, in general, that our practices, methods, and documentation utilized in the sale of preneed funeral goods and services are in all respects compliant with California law. On December 2, 2019, the CAAG filed the complaint, referenced above, seeking permanent injunction from making false statements and engaging in unfair competition, a placement of funds into preneed trusts, civil penalties, customer refunds, attorneys’ fees, and costs. While we believe our contracts comply with applicable laws, the parties have engaged in settlement discussions in an effort to resolve this dispute, which may or may not be successful. We anticipate any settlement in connection with this matter may include preneed contract refunds, governmental investigative costs, and other legal expenses.
Nancy Taylor, on behalf of herself and others similarly situated v. Service Corporation International and others, Case No. 20-cv-60709; in the United States District Court for the Southern District of Florida, Fort Lauderdale Division. This case was filed in April 2020 as a Florida class action alleging that the allocation of prices among certain of our cremation service contracts and cremation merchandise contracts, and the related preneed trust funding, and the failure to disclose commissions paid and sales practices associated with the sale of third-party travel protection plans, violate the Florida Deceptive and Unfair Trade Practices Act and constitute unjust enrichment. Plaintiff seeks refunds; general, actual, compensatory and exemplary damages; civil penalties, interest, and attorney fees. The parties have reached a settlement of the lawsuit that would include an immaterial paymentincludes civil penalties of attorney fees$23 million and provideprovides certain preneed contract consumers enhanced cancellation rights forthe right to receive refunds. The proposed settlement will become final and effective following the entry of judgment by the court, and we maintain a periodreserve that we believe is sufficient to cover all costs related to the settlement. The proposed settlement represents a compromise of sixty days. The impactcontested claims and does not contain any admission of these enhanced cancellation rights is not expected to be material. The court has approvedwrongdoing or fault on the settlement,part of the class has been certified, andCompany, its board of directors or executive officers in the administrative claims process is underway.

FORM 10-Q 23



PART I
action settlement.
Unclaimed Property AuditAudits
We have received notices from auditors representing the unclaimed property departments of thirty-nineapproximately forty states regarding certainthe escheatment of preneed trust funds held in association with unused preneed funeral and cemetery contracts.contracts ("Unused Preneed Trust Funds"). The states claim that such contractsthese Unused Preneed Trust Funds are subject to the states’ unclaimed property or escheatment laws and generally assert that all or a portion of the preneed trust fundsUnused Preneed Trust Funds are escheatable if the beneficiary and/or purchaser is deceased or presumed deceased and no services or merchandise have been provided. We received notice that no additional property is due to be reported for the states of Alabama, Connecticut, Iowa, Kentucky, Maryland, Massachusetts, Montana, Nebraska, New Mexico, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, West Virginia, and West Virginia.Wyoming. We consider the unclaimed property audits resolved in those teneighteen states.
We have entered into an audit resolution agreement with the State of Florida Department of Financial Services and Division of Unclaimed Property ("Florida Agreement"). The Florida Agreement provides for the Company to retain the trust fund earnings and to escheat the principal to the State of Florida, which resulted in an increase in trust fund income in 2023.
We have reserved all of our rights, claims, and defenses. Given the nature of this matter,these matters, we are unable to reasonably estimate the total possible loss or ranges of loss, if any.
We believe we have strong defenses to these claims and we intend to vigorously defend all of the above matters; however, an adverse decision in one or more of such matters could have a material effect on us, our financial condition, results of operations, and cash flows.
FORM 10-Q 23



PART I
10. Earnings Per Share
Basic earnings per common share (EPS) excludes dilution and is computed by dividing Net income attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other obligations to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that shared in our earnings.
A reconciliation of the numerators and denominators of basic and diluted EPS is presented below:
Three months ended March 31,
Three months ended March 31,
Three months ended March 31,
2024
2024
2024
Three months ended March 31,
20232022
(In thousands, except per share amounts)
Amounts attributable to common stockholders:
Amounts attributable to common stockholders:
Amounts attributable to common stockholders:Amounts attributable to common stockholders:
Net income — basic and dilutedNet income — basic and diluted$144,763 $219,513 
Net income — basic and diluted
Net income — basic and diluted
Weighted average shares:
Weighted average shares:
Weighted average shares:Weighted average shares:
Weighted average shares — basicWeighted average shares — basic153,125 161,328 
Weighted average shares — basic
Weighted average shares — basic
Stock optionsStock options2,104 2,402 
Stock options
Stock options
Restricted share units
Restricted share units
Restricted share unitsRestricted share units71 77 
Weighted average shares — dilutedWeighted average shares — diluted155,300163,807
Weighted average shares — diluted
Weighted average shares — diluted
Amounts attributable to common stockholders:
Amounts attributable to common stockholders:
Amounts attributable to common stockholders:Amounts attributable to common stockholders:
Earnings per share:Earnings per share:
Earnings per share:
Earnings per share:
Basic
Basic
BasicBasic$0.95 $1.36 
DilutedDiluted$0.93 $1.34 
Diluted
Diluted
The computation of diluted EPS excludes outstanding stock options and restricted share units in certain periods in which the inclusion of such equity awards would be antidilutive to the periods presented. Total antidilutive options not currently included in the computation of diluted earnings per share are as follows (in shares):
Three months ended March 31,
 20232022
(In thousands)
Antidilutive options186 274 
Three months ended March 31,
 20242023
(In thousands)
Antidilutive options569 186 
24 Service Corporation International



PART I
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The Company
We are North America’s largest provider of deathcare products and services, with a network of funeral service locations and cemeteries unequaled in geographic scale and reach. At March 31, 2023,2024, we operated 1,4801,485 funeral service locations and 490 cemeteries (including 303306 funeral service/cemetery combination locations), which are geographically diversified across 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. Our funeral 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. Our Dignity Memorial® brand serves approximately 600,000 families each year with professionalism, compassion, and attention to detail.
Our financial position is enhanced by our $14.0$15.2 billion backlog of future revenue from both trust and insurance-funded preneed sales at March 31, 2023.2024. Preneed selling provides us with a strategic opportunity to gain future market share. We also believe it adds to the stability and predictability of our revenue and cash flows. While revenue on the majority of preneed merchandise and service sales is deferred until the time of need, sales of preneed cemetery property provide opportunities for full current revenue recognition to the extent that the property is developed and available for use.
We have adequate liquidity and a favorable debt maturity profile, which allow us to reinvest and grow our business as well as return capital to shareholders through share repurchases and dividends.
Factors affecting our operating results include: demographic trends in terms of population growth and average age, which impact death rates and number of deaths; establishing and maintaining leading market share positions supported by strong local heritage and relationships; effectively responding to increasing cremation trends by selling complementary services and merchandise; controlling salary and merchandise costs; and exercising pricing leverage related to our atneed revenue. The average revenue per funeral contract is influenced by the mix of traditional and cremation services because our average revenue for cremations is lower than that for traditional burials. To further enhance revenue opportunities, we continue to focus on our cremation customers' preferences and remaining relevant by developing additional memorialization merchandise and services that specifically appeal to cremation customers. We believe the presentation of these additional merchandise and services through our customer-facing technology improves our customers' experience by reducing administrative burdens and allowing them to visualize the enhanced product and service offerings, which we believe will help drive increases in the average revenue for a cremation in future periods.
Recent Trends
Like most businesses worldwide, COVID-19 is still directly and indirectly impacting various aspects of our business operations; however, we cannot, with certainty, predict the scope, severity, or duration with which COVID-19 will continue to impact our business, financial condition, results of operations, and cash flows.
During the past two years, including the first quarter of 2022, our results were positively impacted by the effects of COVID-19 and its variants. While we anticipated our 2023 results would return to pre-pandemic expectations, we continue to see growth in our funeral preneed sales production as well as a positive impact on our average revenue per service. We view this as further evidence that our customers continue to value what our team does best, which is helping our client families gain closure and healing through the process of grieving, remembrance, and celebration.
For further discussion of our key operating metrics, see our "Cash Flow" and “Results of Operations” sections below.
Financial Condition, Liquidity, and Capital Resources
Capital Allocation Considerations
We rely on cash flow from operations as a significant source of liquidity. Our cash flow from operating activities provided $219.6$220.1 million in the first three months of 2023.2024. As of March 31, 2023,2024, we had $976.5$706.0 million in remaining borrowing capacity under our Bank Credit Facility.
Our Bank Credit Facility requires us to maintain a certain leverage ratio with which we were in compliance with at March 31, 2023.
FORM 10-Q 25



PART I
2024. We target a leverage ratio of 3.5x to 4.0x.
Our leverage ratio requirement and actual ratio as of March 31, 20232024 were as follows:
 Per Credit AgreementActual
Leverage ratio 5.00 (Max)3.563.59 
We have the financial strength and flexibility to reward shareholders with dividends while maintaining a prudent capital structure and pursuing new opportunities for profitable growth.
Our unencumbered cash on hand, future operating cash flows, and the available capacity under our Bank Credit Facilities will give us adequate liquidity to meet our short-term needs as well as our long-term financial obligations. PrimarilyA portion of our cash on hand is encumbered primarily due to cash balances residing in Canada and Puerto Rico, as well as minimum captive insurance balance and operating cash requirements, a portion of our cash on hand is encumbered.requirements.
FORM 10-Q 25



PART I
We consistently evaluate the best uses of our cash flow that will yield the highest value and return on capital. Our capital allocation strategy is prioritized as follows:
Investing in Acquisitions and Building New Funeral Service and Cemetery Locations. We manage our footprint by focusing on strategic acquisitions and building new funeral service locations where the expected returns are attractive and exceed our weighted average cost of capital by a meaningful margin. We target businesses with favorable customer dynamics and/or where we can achieve additional economies of scale. We continue to pursue strategic acquisitions and build new funeral service locations in areas that provide us with the potential for scale.
Managing Debt. We continue to focus on maintaining optimal levels of liquidity and financial flexibility. Our recent $525.0 million increase in our bank credit facility bolsters our flexible capital strategy and allows us to manage our debt maturity profile by making open market debt repurchases when it is opportunistic to do so. We generate a relatively consistent annual cash flow stream that is generally resistant to down economic cycles. This cash flow stream and our significant liquidity allow us to substantially reduce our long-term debt maturities should we choose to do so. In January 2023, we entered into a new bank credit agreement that consists of a $675.0 million term loan due January 2028 and a revolving credit facility due January 2028 providing for borrowings of up to $1.5 billion. Proceeds from this new bank credit agreement were used to settle our existing Term Loan due May 2024 and Bank Credit Facility due May 2024. The new bank credit agreement provides us flexibility with incremental liquidity for capital investment, working capital, and other general corporate purposes.
Return Excess Cash to Shareholders. Absent strategic acquisition or other higher return opportunities, we intend to return excess cash to shareholders. Our quarterly dividend rate has steadily grown from $0.025 per common share in 2005 to $0.27$0.30 per common share in 2023.2024. We target a payout ratio of 30% to 40% of after tax earnings excluding special items and intend to grow our cash dividend commensurate with the growth in our business. While we intend to pay regular quarterly cash dividends for the foreseeable future, all future dividends are subject to limitations in our debt covenant, and final determination by our Board of Directors each quarter upon review of our financial performance.
Managing Debt. We continue to focus on maintaining optimal levels of liquidity and financial flexibility. We generate a relatively consistent annual cash flow stream that is generally resistant to down economic cycles. This cash flow stream and our significant liquidity allow us to opportunistically manage our debt maturity profile as we maintain a target leverage ratio of 3.5x to 4.0x.
Cash Flow
Our ability to generate strong operating cash flow is one of our fundamental financial strengths and provides us with substantial flexibility in meeting operating and investing needs.
Operating Activities
Net cash provided by operating activities was $220.1 million and $219.6 million and $332.2 millionfor the for the three months ended March 31, 2024 and 2023, and 2022, respectively. Cash flow from operations decreased $112.6 million for the three months ended March 31, 2023 versus the same period in 2022. This expected decrease in operating cash flow is primarily due to $90.3 million in lower operating income (excluding the impact from divestitures) as the first quarter of 2022 was impacted significantly by the continued effects of the COVID-19 pandemic.
The 2023 decrease$0.5 million increase in operating cash flows over 2022from 2023 comprises:
a $59.4$17.7 million decreaseincrease in cash receipts from customers,
a $19.8$12.7 million increase in vendor and other payments,
a $13.8 million increasedecrease in employee compensation payments,
a $11.9$3.7 million decrease in cash tax payments, and
a $3.5 million increase in General Agency (GA) commission and other receipts, partially offset by
a $14.2 million increase in cash interest payments,
a $7.6$12.5 million decreaseincrease in net trust withdrawals,deposits, and
a $1.7$10.4 million increase in vendor and other payments.
Investing Activities
Cash flows from investing activities used $96.8 million and $94.9 million for the three months ended March 31, 2024 and 2023, respectively. The $1.9 million increased outflow in 2024 over 2023 is primarily due to the following:
a $7.1 million increase in cash tax paymentsspent on business acquisitions,
a $1.9 million increase in total capital expenditures which comprises:
a $1.5 million increase in expenditures for growth capital expenditures/construction of new funeral service locations, and
$0.4 millionincrease in maintenance capital expenditures:
a $5.7 million increase in expenditures for cemetery property development,
a $2.1 million increase in expenditures for capital improvements at existing field locations, and
a $7.4 million decrease in expenditures for digital investments and corporate.
a $1.4 million increase in net repayments for Company-owned life insurance policies,
a $1.2 million decrease in cash receipts from divestitures and asset sales, partially offset by
a $1.6$9.7 million increasedecrease in General Agency (GA) commission and other receipts.cash spent on real estate acquisitions.

26 Service Corporation International



PART I
InvestingFinancing Activities
Cash flows from investingFinancing activities used $94.9 million and $55.7$134.0 million for the three months ended March 31, 2023 and 2022, respectively.2024 compared to using $163.1 million for the same period in 2023. The $39.2$29.1 million increaseddecreased outflow infrom 2024 over 2023 over 2022 is primarily due to the following:
a $21.2$116.5 million increasedecrease in capital expenditures:
a $22.4 million increase in expenditures for cemetery property development,
a $8.0 million decrease in expenditures for capital improvements at existing field locations,
a $7.6 million increase in expenditures for digital investments and corporate,purchase of Company common stock, and
a $0.8$8.5 million decreaseincrease in expenditures for growth capital expenditures/constructionproceeds from exercises of new funeral service locations
a $16.4 million increase in cash spent on real estate acquisitions, and
a $8.7 million increase in cash spent on business acquisitions,stock options, partially offset by
a $6.8$91.9 million increase in cash receipts from divestitures and asset sales,debt repayments, net of proceeds,
a $2.7 million increase in payments of dividends, and
a $0.3 million decrease in payments for Company-owned life insurance policies, net of proceeds.
Financing Activities
Financing activities used $163.1 million for the three months ended March 31, 2023 compared to using $251.7 million for the same period in 2022. The $88.6 million decreased outflow from 2023 over 2022 is primarily due to the following:
a $90.4 million decrease in purchase of Company common stock,
a $8.5 million increase in proceeds from exercises of stock options, and
a $5.8$1.3 million change in bank overdrafts and other, partially offset by
a $14.9 million increase in debt payments, net of proceeds, and
a $1.2 million increase in payments of dividends.other.
Financial Assurances
In support of our operations, we have entered into arrangements with certain surety companies whereby such companies agree to issue surety bonds on our behalf as financial assurance and/or as required by existing state and local regulations. The surety bonds are used for various business purposes; however, the majority of the surety bonds issued and outstanding have been used to support our preneed sales activities. The obligations underlying these surety bonds are recorded on our unaudited Condensed Consolidated Balance Sheet as Deferred revenue, net. The breakdown of surety bonds between funeral and cemetery preneed arrangements, as well as surety bonds for other activities, is described below.

March 31, 2023December 31, 2022
March 31, 2024March 31, 2024December 31, 2023
(In millions) (In millions)
Preneed funeralPreneed funeral$67.8 $68.4 
Preneed cemetery:Preneed cemetery:  Preneed cemetery:  
Merchandise and servicesMerchandise and services141.3 141.5 
Pre-constructionPre-construction51.7 42.5 
Bonds supporting preneed funeral and cemetery obligationsBonds supporting preneed funeral and cemetery obligations260.8 252.4 
Bonds supporting preneed business permitsBonds supporting preneed business permits7.1 7.1 
Other bondsOther bonds23.9 23.9 
Total surety bonds outstandingTotal surety bonds outstanding$291.8 $283.4 
When selling preneed contracts, we may post surety bonds where allowed by state law. We post the surety bonds in lieu of trusting a certain amount of funds received from the customer. The amount of the bond posted is generally determined by the total amount of the preneed contract that would otherwise be required to be trusted, in accordance with applicable state law.
Surety bond premiums are paid annually and the bonds are automatically renewable until maturity of the underlying preneed contracts, unless we are given prior notice of cancellation.
FORM 10-Q 27



PART I
Except for cemetery pre-construction bonds (which are irrevocable), the surety companies generally have the right to cancel the surety bonds at any time with appropriate notice. In the event a surety company were to cancel the surety bond, we are required to obtain replacement surety assurance from another surety company or fund a trust for an amount generally less than the posted bond amount. Management does not expect that we will be required to fund material future amounts related to these surety bonds due to a lack of surety capacity or surety company non-performance.
Preneed Activities and Backlog of Contracts
In addition to selling our products and services to client families at the time of need, we enter into price-guaranteed preneed contracts, which provide for future funeral or cemetery merchandise and services. Because preneed funeral and cemetery merchandise and services will generally not be provided until sometime in the future, most states and provinces require that all or a portion of the funds collected from customers on preneed contracts be deposited into merchandise and service trusts until the merchandise is delivered or the service is performed. In certain situations, as described above, where permitted by state or provincial laws, we may post a surety bond as financial assurance for a certain amount of the preneed contract in lieu of placing funds into trust accounts. Alternatively, we may sell a life insurance or annuity policy from third-party insurance companies.



FORM 10-Q 27



PART I
Insurance-Funded Preneed Contracts
Where permitted by state or provincial law, we may sell a life insurance or annuity policy from third-party insurance companies, for which we earn a commission as general sales agent for the insurance company. These general agency revenues are based on a percentage per contract sold and are recognized as funeral revenue when the insurance purchase transaction between the preneed purchaser and third-party insurance provider is complete. All selling costs incurred pursuant to the sale of insurance-funded preneed contracts are expensed as incurred. We do not reflect the unfulfilled insurance-funded preneed contract amounts in our unaudited Condensed Consolidated Balance Sheet. The proceeds of the life insurance policies or annuity contracts will be reflected in funeral revenue as we perform these funerals.
The table below details our results of insurance-funded preneed production and maturities.
Three months ended March 31,
20232022
(Dollars in millions)
Three months ended March 31,
Three months ended March 31,
Three months ended March 31,
2024
2024
2024
(Dollars in millions)
(Dollars in millions)
(Dollars in millions)
Preneed insurance-funded:Preneed insurance-funded:
Sales production(1)
Sales production(1)
$180.2 $164.7 
Sales production(1)
Sales production(1)
Sales production (number of contracts) (1)
Sales production (number of contracts) (1)
Sales production (number of contracts) (1)
Sales production (number of contracts) (1)
29,211 26,904 
General agency revenueGeneral agency revenue$46.5 $43.0 
General agency revenue
General agency revenue
Maturities
Maturities
MaturitiesMaturities$104.8 $110.4 
Maturities (number of contracts)Maturities (number of contracts)17,055 18,152 
Maturities (number of contracts)
Maturities (number of contracts)
(1)    Amounts are not included in our unaudited Condensed Consolidated Balance Sheet.
Trust-Funded Preneed Contracts
The funds collected from customers, and required by state or provincial law, are deposited into trusts. We retain any funds above the amounts required to be deposited into trust accounts and use them for working capital purposes, generally to offset the selling and administrative costs of our preneed programs. Although this represents cash flow to us, the associated revenues are deferred until the merchandise is delivered or services are performed (typically at maturity). The funds in trust are then invested by professional money managers with oversight by independent trustees in accordance with state and provincial laws.
28 Service Corporation International



PART I
The tables below detail our results of preneed production and maturities, excluding insurance contracts:
Three months ended March 31,
Three months ended March 31,
Three months ended March 31,
Three months ended March 31,
20232022
(Dollars in millions)(Dollars in millions)
Funeral:Funeral:  
Preneed trust-funded (including bonded):Preneed trust-funded (including bonded):  
Preneed trust-funded (including bonded):
Preneed trust-funded (including bonded):
Sales production
Sales production
Sales productionSales production$142.1 $131.0 
Sales production (number of contracts)Sales production (number of contracts)35,212 33,787 
Sales production (number of contracts)
Sales production (number of contracts)
Maturities
Maturities
MaturitiesMaturities$93.5 $96.9 
Maturities (number of contracts)Maturities (number of contracts)22,416 22,840 
Maturities (number of contracts)
Maturities (number of contracts)
Cemetery:
Cemetery:
Cemetery:Cemetery:
Sales production:Sales production:
Sales production:
Sales production:
Preneed
Preneed
PreneedPreneed$305.7 $362.2 
AtneedAtneed110.8 133.0 
Atneed
Atneed
Total sales production
Total sales production
Total sales productionTotal sales production$416.5 $495.2 
Sales production deferred to backlog:Sales production deferred to backlog:
Sales production deferred to backlog:
Sales production deferred to backlog:
Preneed
Preneed
PreneedPreneed$158.0 $182.7 
AtneedAtneed78.1 91.8 
Atneed
Atneed
Total sales production deferred to backlog
Total sales production deferred to backlog
Total sales production deferred to backlogTotal sales production deferred to backlog$236.1 $274.5 
Revenue recognized from backlog:Revenue recognized from backlog:
Revenue recognized from backlog:
Revenue recognized from backlog:
Preneed
Preneed
PreneedPreneed$113.1 $103.0 
AtneedAtneed77.1 81.0 
Atneed
Atneed
Total revenue recognized from backlogTotal revenue recognized from backlog$190.2 $184.0 
Total revenue recognized from backlog
Total revenue recognized from backlog
Backlog of Preneed Contracts
The following table reflects our backlog of trust-funded deferred preneed contract revenue, including amounts related to deferred receipts held in trust at March 31, 20232024 and December 31, 2022.2023. Additionally, the table reflects our backlog of unfulfilled insurance-funded contracts (which are not included in our unaudited Condensed Consolidated Balance Sheet) at March 31, 20232024 and December 31, 2022.2023. The backlog amounts presented include amounts due from customers for undelivered performance obligations on cancelable preneed contracts to arrive at our total backlog of deferred revenue. The table does not include the backlog associated with businesses that are held for sale.
The table also reflects our preneed receivables and trust investments associated with the backlog of deferred preneed contract revenue, including the amounts due from customers for undelivered performance obligations on cancelable preneed contracts. We believe that the table below is meaningful because it sets forth the aggregate amount of future revenue we expect to recognize as a result of preneed sales, as well as the amount of funds associated with this revenue. Because the future revenue exceeds the assets, future revenue will exceed the cash distributions actually received from the associated trusts and future collections from the customer.
FORM 10-Q 29



PART I
March 31, 2023December 31, 2022
March 31, 2024March 31, 2024December 31, 2023
Fair ValueCostFair ValueCost Fair ValueCostFair ValueCost
(In billions) (In billions)
Deferred revenue, netDeferred revenue, net$1.64 $1.64 $1.62 $1.62 
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contractsAmounts due from customers for unfulfilled performance obligations on cancelable preneed contracts0.87 0.87 0.85 0.85 
Deferred receipts held in trustDeferred receipts held in trust4.35 4.17 4.16 4.12 
Allowance for cancellation on trust investmentsAllowance for cancellation on trust investments(0.25)(0.24)(0.24)(0.23)
Backlog of trust-funded deferred revenue, net of estimated allowance for cancellationBacklog of trust-funded deferred revenue, net of estimated allowance for cancellation6.61 6.44 6.39 6.36 
Backlog of insurance-funded revenue (1)
Backlog of insurance-funded revenue (1)
7.43 7.43 7.35 7.35 
Total backlog of deferred revenueTotal backlog of deferred revenue$14.04 $13.87 $13.74 $13.71 
Preneed receivables, net and trust investmentsPreneed receivables, net and trust investments$5.78 $5.60 $5.58 $5.54 
Preneed receivables, net and trust investments
Preneed receivables, net and trust investments
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contractsAmounts due from customers for unfulfilled performance obligations on cancelable preneed contracts0.87 0.87 0.85 0.85 
Allowance for cancellation on trust investmentsAllowance for cancellation on trust investments(0.25)(0.24)(0.24)(0.23)
Assets associated with backlog of trust-funded deferred revenue, net of estimated allowance for cancellationAssets associated with backlog of trust-funded deferred revenue, net of estimated allowance for cancellation6.40 6.23 6.19 6.16 
Insurance policies associated with insurance-funded deferred revenue (1)
Insurance policies associated with insurance-funded deferred revenue (1)
7.43 7.43 7.35 7.35 
Total assets associated with backlog of preneed revenueTotal assets associated with backlog of preneed revenue$13.83 $13.66 $13.54 $13.51 
(1)    Amounts are not included in our unaudited Condensed Consolidated Balance Sheet.
The fair value of our trust investments was based on a combination of quoted market prices, observable inputs such as interest rates or yield curves, and appraisals. As of March 31, 2023,2024, the difference between the backlog and asset market amounts represents $0.19$0.18 billion related to contracts for which we have posted surety bonds as financial assurance in lieu of trusting, $1.29$1.33 billion collected from customers that were not required to be deposited into trusts, and $0.15$0.19 billion in allowable cash distributions from trust assets partially offset by $1.42$1.51 billion in amounts due on delivered property and merchandise. As of March 31, 2023,2024, the fair value of the total backlog comprised $3.96$4.38 billion related to cemetery contracts and $10.08$10.83 billion related to funeral contracts. As of March 31, 2023,2024, the fair value of the assets associated with the backlog of trust-funded deferred revenue comprised $3.94$4.40 billion related to cemetery contracts and $2.46$2.72 billion related to funeral contracts. As of March 31, 2023,2024, the backlog of insurance-funded contracts of $7.43$7.90 billion was equal to the proceeds we expect to receive from the associated insurance policies when the corresponding contract is serviced.
Trust Investments
In addition to selling our products and services to client families at the time of need, we enter into price-guaranteed preneed funeral and cemetery contracts, which provide for future funeral or cemetery merchandise and services. Since preneed funeral and cemetery merchandise or services will generally not be provided until sometime in the future, most states and provinces require that all or a portion of the funds collected from customers on preneed funeral and cemetery contracts be paid into trusts and/or escrow accounts until the merchandise is delivered or the service is performed. Investment earnings associated with the trust investments are expected to mitigate the inflationary costs of providing the preneed funeral and cemetery merchandise and services in the future at the prices that were guaranteed at the time of sale. Also, we are required by state and provincial law to pay a portion of the proceeds from the preneed or atneed sale of cemetery property interment rights into perpetual care trusts. For these investments, the original corpus generally remains in the trust in perpetuity and the earnings or elected distributions are withdrawn as allowed to defray the expenses to maintain the cemetery property. While many states require that net capital gains or losses be retained and added to the corpus, certain states allow the net realized capital gains and losses to be included in the earnings that are distributed. Additionally, some states allow a total return distribution that may contain elements of income, capital appreciation, and principal.
Independent trustees manage and invest the majority of the funds deposited into the funeral and cemetery merchandise and service trusts as well as the cemetery perpetual care trusts. The majority of the trustees are selected based on their respective geographic footprint and qualifications per state and provincial regulations. Most of the trustees engage the same independent investment managers. These trustees, with input from SCI's wholly-owned registered investment advisor, establish an investment policy that serves as an operating document to guide the investment activities of the trusts including asset allocation and manager selection. The investments are also governed by state and provincial guidelines. All of the trusts
30 Service Corporation International



PART I
seek to control risk and volatility through a combination of asset classes, investment styles, and a diverse mix of investment managers.
Asset allocation is based on the liability structure of each funeral, cemetery, and perpetual care trust. Based on the various criteria set forth in the investment policy, the investment advisor recommends investment managers to the trustees. The primary investment objectives for the funeral and cemetery merchandise and service trusts include 1) preserving capital within acceptable levels of volatility and risk and 2) achieving growth of principal over time sufficient to preserve and increase the purchasing power of the assets. Preneed funeral and cemetery contracts generally take several years to mature; therefore, the funds associated with these contracts are often invested through several market cycles.
Where allowed by state and provincial regulations, the cemetery perpetual care trusts’ primary investment objectives are growth-oriented to provide for a fixed distribution rate from the trusts’ assets. Where such distributions are limited to ordinary income, the cemetery perpetual care trusts’ investment objectives emphasize providing a steady stream of current investment income with some capital appreciation. Both types of distributions are used to provide for the current and future maintenance and beautification of the cemetery properties.
As of March 31, 2023,2024, approximately 95% of our trusts were under the control and custody of fourfive large financial institutions. The U.S. trustees primarily use four managed limited liability companies (LLCs), one for each merchandise and service trust type and two for the cemetery perpetual care trust type, each with an independent trustee as custodian. Each financial institution acting as trustee manages its allocation of trust assets in accordance with the investment policy through the purchase of the appropriate LLCs' units. For those accounts not eligible for participation in the LLCs or where a particular state's regulations contain other investment restrictions, the trustee utilizes institutional mutual funds that comply with our investment policy or with such state restrictions. The U.S. trusts include a modest allocation to alternative investments. These alternative investments are held in vehicles structured as LLCs and are managed by certain trustees. The trusts that are eligible to allocate a portion of their investments to alternative investments purchase units of the respective alternative investment LLCs.
Investment Structures
The managed LLCs use the following structures for investments:
Commingled Funds.funds These funds allow the trusts to access, at a reduced cost, some of the same investment managers and strategies used elsewhere in the portfolios.
Mutual Funds.Separately managed accounts The trustare trusts that utilize separately managed accounts, where appropriate, to reduce the costs to the investment portfolios.
Mutual funds employ institutional share class mutual funds where operationally or economically efficient. These mutual funds are utilized to invest in various asset classes including U.S. equities, non-U.S. equities, corporate bonds, government bonds, high yield bonds, and commodities, all of which are governed by guidelines outlined in their individual prospectuses.
Separately Managed Accounts. To reduce the costs to the investment portfolios, the trusts utilize separately managed accounts where appropriate.
Asset Classes
Equity investments have historically provided long-term capital appreciation in excess of inflation. The trusts have direct investments in individual equity securities primarily in domestic equity portfolios that include large, mid, and small capitalization companies of different investment styles (i.e., growth and value). The majority of the equity allocation is managed by institutional investment managers that specialize in an objective-specific area of expertise. Our equity securities are exposed to market risk; however, we believe these securities are well-diversified. As of March 31, 2023,2024, the largest single equity position represented less thanapproximately 1% of the total securities portfolio.
Fixed income investments are intended to preserve principal, provide a source of current income, and reduce overall portfolio volatility. The majority of the fixed income allocation for the trusts is invested in institutional share class mutual funds. Where the trusts have direct investments in individual fixed income securities, these are primarily in government and corporate instruments.
Canadian government fixed income securities are investments in Canadian federal and provincial government instruments. In many cases, regulatory restrictions mandate that the funds from the sales of preneed funeral and cemetery contracts sold in certain Canadian jurisdictions must be invested in these instruments.
Alternative investments serve to provide high rates of return with reduced volatility and lower correlation to publicly-traded securities. These investments are typically longer term in duration and are diversified by strategy, sector, manager, geography, and vintage year. The investments consist of numerous limited partnerships invested in private equity, private market real estate, energy and natural resources, infrastructure, transportation, and private debt including both distressed debt and mezzanine financing. The trustees that have oversight of their respective alternative LLCs work closely with the investment advisor in making all investment decisions.
FORM 10-Q 31



PART I
Trust Performance
During the three months ended March 31, 2023,2024, the Standard and Poor’s 500 Index increased 7.5%10.6% and the Bloomberg’s US Aggregate Bond Index increased 3.0%decreased 0.8%. This compares to SCI trusts that increased 5.2%5.6% during the same period, which exceeded our internal custom benchmark. The SCI trusts have a diversified allocation of approximately 57%60% equities, 28%26% fixed income securities, 10% alternative and other investments with the remaining 5%4% available in money market funds.
Recognized trust fund income (realized and unrealized) related to our preneed trust investments was $36.0$42.7 million and $45.9$36.0 million for the three months ended March 31, 20232024 and 2022,2023, respectively. Recognized trust fund income (realized and unrealized) related to our cemetery perpetual care trust investments was $22.0$23.3 million and $24.4$22.0 million for the three months ended March 31, 20232024 and 2022,2023, respectively. The declineincrease in recognized trust fund income is primarily due to the market returns experienced during 2022 and the timing of capital gains impact on our cemetery perpetual care trust investments in the current quarter.2023.
SCI, the trustees, and the investment advisor monitor the capital markets and the trusts on an on-going basis. The trustees, with input from the investment advisor, take prudent action as needed to achieve the investment goals and objectives of the trusts.
Results of Operations — Three Months Ended March 31, 20232024 and 20222023
Management Summary
In the first three months of 2023,2024, we reported consolidated net income attributable to common stockholders of $144.8$131.3 million ($0.930.89 per diluted share) compared to net income attributable to common stockholders for the same period in 20222023 of $219.5$144.8 million ($1.340.93 per diluted share). These results were impacted by certain items including:
Three months ended March 31,
20232022
 (In millions)
Pre-tax gains on divestitures and impairment charges, net$0.7 $0.5 
Pre-tax loss on early extinguishment of debt$(1.1)$— 
Tax effect from items$0.1 $(0.6)
Change in uncertain tax reserves and other$0.2 $— 
Three months ended March 31,
20242023
 (In millions)
Pre-tax (losses) gains on divestitures and impairment charges, net$(0.7)$0.7 
Pre-tax losses on early extinguishment of debt$— $(1.1)
Tax effect from significant items$0.1 $0.1 
Change in uncertain tax reserves and other$— $0.2 
In addition to the above items, the decrease from the prior year is primarily due to anwas expected, decline inas higher cemetery gross profit, related to decreases in COVID-19 related activity compared to the prior year. Additionally, fewer shares outstandinga lower share count, and a lower tax rate helped to offset the impact ofwas slightly overcome by lower funeral gross profit as well as higher interest expense primarily due to rising interest rates.expense.
32 Service Corporation International



PART I
Funeral Results
Three months ended March 31,
Three months ended March 31,
Three months ended March 31,
2024
Three months ended March 31,
20232022
(Dollars in millions, except average revenue per service)(Dollars in millions, except average revenue per service)
Consolidated funeral revenueConsolidated funeral revenue$609.7 $649.1 
Less: revenue associated with acquisitions/new constructionLess: revenue associated with acquisitions/new construction6.6 — 
Less: revenue associated with acquisitions/new construction
Less: revenue associated with acquisitions/new construction
Less: revenue associated with divestitures
Less: revenue associated with divestitures
Less: revenue associated with divestituresLess: revenue associated with divestitures0.8 1.1 
Comparable(1) funeral revenue
Comparable(1) funeral revenue
602.3 648.0 
Less: comparable recognized preneed revenue46.2 43.1 
Less: comparable general agency and other revenue42.7 36.8 
Comparable(1) funeral revenue
Comparable(1) funeral revenue
Less: non-funeral home preneed sales revenue
Less: non-funeral home preneed sales revenue
Less: non-funeral home preneed sales revenue
Less: core general agency and other revenue
Less: core general agency and other revenue
Less: core general agency and other revenue
Adjusted comparable funeral revenue
Adjusted comparable funeral revenue
Adjusted comparable funeral revenueAdjusted comparable funeral revenue$513.4 $568.1 
Comparable services performedComparable services performed94,217 105,276 
Comparable services performed
Comparable services performed
Comparable average revenue per service(2)
Comparable average revenue per service(2)
Comparable average revenue per service(2)
Comparable average revenue per service(2)
$5,449 $5,396 
Consolidated funeral gross profitConsolidated funeral gross profit$149.5 $196.0 
Less: gross profit (losses) associated with acquisitions/new construction0.9 (0.1)
Less: gross profit (losses) associated with divestitures0.2 (0.3)
Consolidated funeral gross profit
Consolidated funeral gross profit
Less: gross profit associated with acquisitions/new construction
Less: gross profit associated with acquisitions/new construction
Less: gross profit associated with acquisitions/new construction
Less: gross profit associated with divestitures
Less: gross profit associated with divestitures
Less: gross profit associated with divestitures
Comparable(1) funeral gross profit
Comparable(1) funeral gross profit
$148.4 $196.4 
Comparable(1) funeral gross profit
Comparable(1) funeral gross profit
(1)    We define comparable (or same store) operations as those funeral locations owned by us for the entire period beginning January 1, 20222023 and ending March 31, 2023.2024.
(2)    We calculate comparable average revenue per service by dividing comparable funeral revenue, excluding general agency revenue, recognizednon-funeral home preneed sales revenue, and other revenue to avoid distorting our average of normal funeral services revenue, by the comparable number of funeral services performed during the period. Recognized preneed revenue is preneed sales of merchandise that are delivered at the time of sale, including memorial merchandise and travel protection, net, and excluded from our calculation of comparable average revenue per service because the associated service has not yet been performed.
Funeral Revenue
Consolidated revenue from funeral operations was $609.7$604.7 million for the three months ended March 31, 2023,2024, compared to $649.1$609.7 million for the same period in 2022.2023. This $39.4$5.0 million decrease is primarily attributable to a $45.7$8.5 million decrease in comparable revenue as described below and offset by $6.6$4.3 million of growth in revenue contributed by acquired and newly constructed properties.
Comparable revenue from funeral operations was $602.3$599.4 million for the three months ended March 31, 20232024 compared to $648.0$607.9 million for the same period in 2022. This $45.72023. The $8.5 million or 7.1%, decrease was primarily attributabledue to a 10.5%$12.3 million decrease in our comparable funeral services performed as the prior year continued to be impacted by the COVID-19 pandemic. This decrease wasnon-funeral home preneed sales revenue slightly offset by an increase of $3.7 million in core funeral revenue. Core revenue increased by $3.7 million primarily due to a 1.0%3.9% increase in thecore average revenue per service. Additionally, the decrease was also partially offset by a $5.9 million increase3.0% decrease in comparable general agency and other revenue and a $3.1 million increase in comparable recognized preneed revenue as the growth from both resulted from an 8.1% increase in our comparable preneedcore funeral sales production.
Comparable average revenue per funeral service grew 1.0% for the three months ended March 31, 2023 compared to the same period in 2022. This average revenue growth was primarily attributable to our customers desire for more comprehensive services including items such as catering and flowers and inflationary pricing, which more than absorbed the increase in the comparable cremation rate during the quarter. Our total comparable cremation rate increased 240 basis points to 62.5% and the comparableperformed. The core cremation rate increased by 20070 basis points to 55.7% for the three months ended March 31, 2023.56.6%.
Non-funeral home preneed sales revenue decreased by $12.3 million primarily due to operational changes in certain markets with respect to timing of merchandise deliveries. This decrease is partially offset by an increase in general agency revenue as we continue to shift from trust-funded to insurance-funded contracts.
Funeral Gross Profit
Consolidated funeral gross profit decreased $46.5$17.6 million, or 23.7%11.8%, in the first three months of 20232024 compared to 2022.2023. This decrease is primarily attributable to the $48.0$18.3 million, or 24.4%12.2%, decrease in comparable funeral gross profit. Comparable funeral gross profit decreased $48.0$18.3 million to $148.4$131.2 million and the comparable gross profit percentage decreased from 30.3%24.6% to 24.6%21.9%. This decrease in gross profit is primarily due to the expected decline in revenue mentioned above combined with higher sellingand an increase in annual incentive compensation costs on higher preneed insurance sales production duringover the prior year quarter.
FORM 10-Q 33



PART I
Cemetery Results
Three months ended March 31,
Three months ended March 31,
Three months ended March 31,
2024
Three months ended March 31,
20232022
(In millions)(In millions)
Consolidated cemetery revenueConsolidated cemetery revenue$419.0 $463.3 
Less: revenue associated with acquisitions/new constructionLess: revenue associated with acquisitions/new construction0.5 — 
Less: revenue associated with acquisitions/new construction
Less: revenue associated with acquisitions/new construction
Less: revenue associated with divestitures
Less: revenue associated with divestitures
Less: revenue associated with divestitures
Comparable(1) cemetery revenue
Comparable(1) cemetery revenue
Comparable(1) cemetery revenue
Comparable(1) cemetery revenue
$418.5 $463.3 
Consolidated cemetery gross profitConsolidated cemetery gross profit$139.6 $180.9 
Less: gross profit (losses) associated with acquisitions/new construction(0.7)(0.1)
Consolidated cemetery gross profit
Consolidated cemetery gross profit
Less: gross losses associated with acquisitions/new construction
Less: gross losses associated with acquisitions/new construction
Less: gross losses associated with acquisitions/new construction
Less: gross losses associated with divestitures
Less: gross losses associated with divestitures
Less: gross losses associated with divestitures
Comparable(1) cemetery gross profit
Comparable(1) cemetery gross profit
$140.3 $181.0 
Comparable(1) cemetery gross profit
Comparable(1) cemetery gross profit
(1)    We define comparable (or same store) operations as those cemetery locations owned by us for the entire period beginning January 1, 20222023 and ending March 31, 2023.2024.
Cemetery Revenue
Consolidated revenue from our cemetery operations decreased $44.3increased $21.6 million, or 9.6%5.2%, for the three months ended March 31, 20232024 compared to the same period in 20222023 primarily due to a $44.8$21.1 million, or 9.7%5.0%, decreaseincrease in comparable cemetery revenue partially offset byand a $0.5$0.9 million increase in revenue contributed by newly constructed and acquired properties.
The $44.8$21.1 million, or 9.7%5.0%, decreaseincrease in comparable cemetery revenue was primarily attributable to a $42.2$18.9 million decreaseincrease in comparable cemetery core revenue. This declineincrease was primarily as a result of a $28.8$19.5 million decreaseincrease in total recognized preneed revenue, andwhich benefited from growth in comparable preneed sales production of $23.8 million, or 7.8%, that more than offset a $13.4 million decreasemodest decline in atneed revenue as the prior year was more heavily impacted the COVID-19 pandemic. Comparable other revenue also decreased $2.6 million, or 7.7%, compared to the prior year quarter primarily from a decrease in endowment care trust fund income due to the timing of capital gains.revenue.
Cemetery Gross Profit
Consolidated cemetery gross profit decreased $41.3increased $2.7 million for the three months ended March 31, 20232024 compared to the same period in 2022,2023, which is primarily attributable to the decreaseincrease in comparable cemetery gross profit of $40.7$2.6 million. Comparable cemetery gross profit decreased $40.7increased from $139.9 million to $140.3$142.5 million, and the gross profit percentage decreased from 33.4% to 33.5% from 39.1%. The decrease in gross profit is32.4% primarily due to an increase in annual incentive compensation costs over the decline in revenue mentioned above combined with higher maintenance costs during theprior year quarter.
Other Financial Statement Items
Corporate General and Administrative Expenses
Corporate general and administrative expenses increased $2.5decreased $2.8 million to $44.2$41.3 million for the three months ended March 31, 20232024. The decrease was primarily related to our long-term incentive compensation plan that is tied to growth in total shareholder return andprior year accelerated compensation expenses related toupon the retirement of certain executives.executives and the timing of lower long-term incentive compensation costs versus the prior year quarter.
Interest Expense
Interest expense increased $14.9$10.4 million to $53.9$64.4 million for the three months ended March 31, 20232024 primarily due to higher interest and a higher balance on our floating rate debt. During the first quarter of 2023,three months ended March 31, 2024, our floating rate debt carried a weighted average rate of 6.0%7.4%, which is over 400more than 140 basis points higher than the weighted average rate for our floating rate debt in the prior year first quarter.quarter of 2023.
Provision for Income Taxes
Our effective tax rate was 24.5%22.9% and 26.0%24.5% for the three months ended March 31, 20232024 and 2022,2023, respectively. The lower effective tax rate for the three months ended March 31, 20232024 was primarily due to greateran increase in excess tax benefits recognized on the settlement of employee share-based awards.awards, which decreased tax expense during the quarter. The effective tax rate for the three months ended March 31, 20232024 was higher than the federal statutory tax rate of 21%21.0% primarily due to state tax expense.
Weighted Average Shares
The diluted weighted average number of shares outstanding was 155.3147.9 million for the three months ended March 31, 20232024 compared to 163.8155.3 million for the same period in 2022.2023. The decrease primarily reflects the impact of shares repurchased under our share repurchase program.
34 Service Corporation International



PART I
Critical Accounting Policies, Recent Accounting Pronouncements, and Accounting Changes
The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Although we base our estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances, actual results may differ from the estimates on which our financial statements are prepared at any given point of time. Changes in these estimates could materially affect our consolidated financial position, consolidated results of operations, or cash flows. Significant items that are subject to such estimates and assumptions include revenue and expense accruals, fair value of merchandise and perpetual care trust assets, and the allocation of purchase price to the fair value of assets acquired. Our critical accounting policies have not significantly changed since December 31, 20222023 and are disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022.2023.
Recent Accounting Pronouncements and Accounting Changes
For discussion of recent accounting pronouncements and accounting changes, see Part I, Item 1. Financial Statements, Note 2 of this Form 10-Q.
Cautionary Statement on Forward-Looking Statements
The statements in this Form 10-Q that are not historical facts are forward-looking statements made in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. These statements may be accompanied by words such as “believe”, “estimate”, “project”, “expect”, “anticipate”, “predict” that convey the uncertainty of future events or outcomes. These statements are based on assumptions that we believe are reasonable; however, many important factors could cause our actual consolidated results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by, or on behalf of, the Company. These factors are discussed below. We assume no obligation and make no undertaking to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the Company, whether as a result of new information, future events, or otherwise.
Our affiliated trust funds own investments in securities, which are affected by market conditions that are beyond our control.
We may be required to replenish our affiliated funeral and cemetery trust funds 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.
We may be adversely affected by the effects of inflation.
Our results may be adversely affected by significant weather events, natural disasters, catastrophic events or public health crises.
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 activities, we may be required to make material cash payments to fund certain trust funds.
Increasing death benefits related to preneed contracts funded through life insurance or annuity contracts may not cover future increases in the cost of providing a price-guaranteed service.
The financial condition of third-party life insurance companies that fund our preneed contracts may impact our future revenue.
Unfavorable publicity could affect our reputation and business.
Our failure to attract and retain qualified sales personnel could have an adverse effect on our business and financial condition.
We use a combination of insurance, self-insurance, and large deductibles in managing our exposure to certain inherent risks; therefore, we could be exposed to unexpected costs that could negatively affect our financial performance.
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, financial condition, or cash flow.
Our Canadian business exposes us to operational, economic, and currency risks.
FORM 10-Q 35



PART I
Our level of indebtedness could adversely affect our cash flows, 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.
A failure of a key information technology system or process could disrupt and adversely affect our business.
Failure to maintain effective internal control over financial reporting could adversely affect our results of operations, investor confidence, and our stock price.
The funeral and cemetery industry is competitive.
If the number of deaths in our markets declines, our cash flows and revenue may decrease. Changes in the number of deaths are not predictable from market to market or over the short term.
If we are not able to respond effectively to changing consumer preferences, our market share, revenue, and/or profitability could decrease.
The continuing upward trend in life expectancy and the number of cremations performed in North America could result in lower revenue, operating profit, and cash flows.
Our funeral and cemetery businesses are high fixed-cost businesses.
Risks associated with our supply chain could materially adversely affect our financial performance.
Regulation and compliance could have a material adverse impact on our financial results.
Unfavorable results of litigation could have a material adverse impact on our financial statements.
Cemetery burial practice claims could have a material adverse impact on our financial results.
The application of unclaimed property laws by certain states to our preneed funeral and cemetery backlog could have a material adverse impact on our liquidity, cash flows, and financial results.
Changes in taxation, or the interpretation of tax laws or regulations, as well as the inherent difficulty in quantifying potential tax effects of business decisions could have a material adverse effect on the results of our operations, financial condition, or cash flows.
For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings, including our 20222023 Annual Report on Form 10-K. Copies of this document as well as other SEC filings can be obtained from our website at www.sci-corp.com. We assume no obligation and make no undertaking to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by us whether as a result of new information, future events, or otherwise.
36 Service Corporation International



PART I
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The primary objective of the following information is to provide forward-looking quantitative and qualitative information about our potential exposure to market risks. The term “market” risk refers to the risk of gains or losses arising from changes in interest rates and prices of marketable securities. The disclosures are not meant to be precise indicators of expected future gains or losses, but rather indicators of reasonably possible gains or losses. This forward-looking information provides indicators of how we view and manage our ongoing market risk exposures. All of our market risk-sensitive instruments were entered into for purposes other than trading.
Marketable Equity and Debt Securities — Price Risk
In connection with our preneed operations and sales, the related trust funds own investments in equity and debt securities and mutual funds, which are sensitive to current market prices. Cost and market values as of March 31, 20232024 are presented in Part I, Item 1. Financial Statements, Note 3 of this Form 10-Q. Also, see Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations "Financial Condition, Liquidity and Capital Resources" section for discussion of trust investments.
36 Service Corporation International



PART I
Item 4. Controls and Procedures
Disclosure Controls and Procedures
As of March 31, 2023,2024, we carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)). Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the Securities and Exchange Commission (SEC) reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time period specified by the SEC’s rules and forms and that such information is accumulated and communicated to management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure. Based on our evaluation, our CEO and CFO have concluded that our disclosure controls and procedures are effective as of March 31, 20232024 and that the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q fairly present, in all material respects, our consolidated financial condition, consolidated results of operations, and cash flows for the periods presented in conformity with US GAAP.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting during the quarter ended March 31, 20232024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
FORM 10-Q 37


PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Information regarding legal proceedings is set forth in Part I, Item 1. Financial Statements, Note 9 of this Form 10-Q, which information is hereby incorporated by reference herein.
Item 1A. Risk Factors
There have been no material changes in our Risk Factors as set forth in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.2023.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The following table summarizes our share repurchases during the three months ended March 31, 2023:2024:

PeriodTotal Number of
Shares Purchased
Average Price
Paid per Share
Total Number
of Shares
Purchased as
Part of Publicly
Announced Programs
Approximate Dollar Value of
Shares That
May Yet be
Purchased Under the Program
January 1, 2023 — January 31, 2023 (1)
668,404 $69.93 644,431 $539,177,841 
February 1, 2023 — February 28, 2023505,858 $71.19 505,858 $503,166,477 
March 1, 2023 — March 31, 2023 (2)
1,258,221 $66.08 1,234,517 $421,585,509 
2,432,483 2,384,806 
PeriodTotal Number of
Shares Purchased
Average Price
Paid per Share
Total Number
of Shares
Purchased as
Part of Publicly
Announced Programs
Approximate Dollar Value of
Shares That
May Yet be
Purchased Under the Program
January 1, 2024 — January 31, 2024 (1)
219,543 $67.88 187,317 $512,248,221 
February  1, 2024 — February 29, 2024236,241 $68.82 236,241 $495,990,885 
March 1, 2024 — March 31, 2024 (2)
250,521 $73.16 232,335 $478,994,083 
706,305 655,893 
(1) 23,973 32,226shares were purchased in January 20232024 in connection with the surrender of shares by associates to satisfy certain tax withholding obligations under compensation plans. These repurchases were not part of our publicly announced program and do not affect our share repurchase program.
(2)23,70418,186 shares were purchased in March 20232024 in connection with the surrender of shares by associates to satisfy certain tax withholding obligations under compensation plans. These repurchases were not part of our publicly announced program and do not affect our share repurchase program.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
No other information.(a) Not applicable.
(b) Not applicable.
(c) During the three months ended March 31, 2024, no director or officer (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.
38 Service Corporation International



PART II
Item 6. Exhibits
Exhibit Number Description
10.1
101Interactive data file formatted Inline XBRL.
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

FORM 10-Q 39


Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
May 2, 20232024SERVICE CORPORATION INTERNATIONAL
By:/s/ TAMMY MOORE
Tammy Moore
Vice President and Corporate Controller
(Principal Accounting Officer)
40 Service Corporation International