000008908912/312024Q3FALSE144,979,108xbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:pureutr:Rate00000890892024-01-012024-09-300000089089us-gaap:SubsequentEventMember2024-10-3100000890892024-09-300000089089us-gaap:ProductMember2024-07-012024-09-300000089089us-gaap:ProductMember2023-07-012023-09-300000089089us-gaap:ProductMember2024-01-012024-09-300000089089us-gaap:ProductMember2023-01-012023-09-300000089089us-gaap:ServiceMember2024-07-012024-09-300000089089us-gaap:ServiceMember2023-07-012023-09-300000089089us-gaap:ServiceMember2024-01-012024-09-300000089089us-gaap:ServiceMember2023-01-012023-09-300000089089us-gaap:ProductAndServiceOtherMember2024-07-012024-09-300000089089us-gaap:ProductAndServiceOtherMember2023-07-012023-09-300000089089us-gaap:ProductAndServiceOtherMember2024-01-012024-09-300000089089us-gaap:ProductAndServiceOtherMember2023-01-012023-09-3000000890892024-07-012024-09-3000000890892023-07-012023-09-3000000890892023-01-012023-09-3000000890892023-12-3100000890892022-12-3100000890892023-09-300000089089us-gaap:CommonStockMember2022-12-310000089089us-gaap:TreasuryStockCommonMember2022-12-310000089089us-gaap:AdditionalPaidInCapitalMember2022-12-310000089089us-gaap:RetainedEarningsMember2022-12-310000089089us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000089089us-gaap:NoncontrollingInterestMember2022-12-310000089089us-gaap:CommonStockMember2023-01-012023-03-310000089089us-gaap:TreasuryStockCommonMember2023-01-012023-03-310000089089us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310000089089us-gaap:RetainedEarningsMember2023-01-012023-03-310000089089us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310000089089us-gaap:NoncontrollingInterestMember2023-01-012023-03-3100000890892023-01-012023-03-310000089089us-gaap:CommonStockMember2023-03-310000089089us-gaap:TreasuryStockCommonMember2023-03-310000089089us-gaap:AdditionalPaidInCapitalMember2023-03-310000089089us-gaap:RetainedEarningsMember2023-03-310000089089us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310000089089us-gaap:NoncontrollingInterestMember2023-03-3100000890892023-03-310000089089us-gaap:CommonStockMember2023-04-012023-06-300000089089us-gaap:TreasuryStockCommonMember2023-04-012023-06-300000089089us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300000089089us-gaap:RetainedEarningsMember2023-04-012023-06-300000089089us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300000089089us-gaap:NoncontrollingInterestMember2023-04-012023-06-3000000890892023-04-012023-06-300000089089us-gaap:CommonStockMember2023-06-300000089089us-gaap:TreasuryStockCommonMember2023-06-300000089089us-gaap:AdditionalPaidInCapitalMember2023-06-300000089089us-gaap:RetainedEarningsMember2023-06-300000089089us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300000089089us-gaap:NoncontrollingInterestMember2023-06-3000000890892023-06-300000089089us-gaap:CommonStockMember2023-07-012023-09-300000089089us-gaap:TreasuryStockCommonMember2023-07-012023-09-300000089089us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300000089089us-gaap:RetainedEarningsMember2023-07-012023-09-300000089089us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000089089us-gaap:NoncontrollingInterestMember2023-07-012023-09-300000089089us-gaap:CommonStockMember2023-09-300000089089us-gaap:TreasuryStockCommonMember2023-09-300000089089us-gaap:AdditionalPaidInCapitalMember2023-09-300000089089us-gaap:RetainedEarningsMember2023-09-300000089089us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300000089089us-gaap:NoncontrollingInterestMember2023-09-300000089089us-gaap:CommonStockMember2023-12-310000089089us-gaap:TreasuryStockCommonMember2023-12-310000089089us-gaap:AdditionalPaidInCapitalMember2023-12-310000089089us-gaap:RetainedEarningsMember2023-12-310000089089us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000089089us-gaap:NoncontrollingInterestMember2023-12-310000089089us-gaap:CommonStockMember2024-01-012024-03-310000089089us-gaap:TreasuryStockCommonMember2024-01-012024-03-310000089089us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310000089089us-gaap:RetainedEarningsMember2024-01-012024-03-310000089089us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310000089089us-gaap:NoncontrollingInterestMember2024-01-012024-03-3100000890892024-01-012024-03-310000089089us-gaap:CommonStockMember2024-03-310000089089us-gaap:TreasuryStockCommonMember2024-03-310000089089us-gaap:AdditionalPaidInCapitalMember2024-03-310000089089us-gaap:RetainedEarningsMember2024-03-310000089089us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310000089089us-gaap:NoncontrollingInterestMember2024-03-3100000890892024-03-310000089089us-gaap:CommonStockMember2024-04-012024-06-300000089089us-gaap:TreasuryStockCommonMember2024-04-012024-06-300000089089us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-300000089089us-gaap:RetainedEarningsMember2024-04-012024-06-300000089089us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-012024-06-300000089089us-gaap:NoncontrollingInterestMember2024-04-012024-06-3000000890892024-04-012024-06-300000089089us-gaap:CommonStockMember2024-06-300000089089us-gaap:TreasuryStockCommonMember2024-06-300000089089us-gaap:AdditionalPaidInCapitalMember2024-06-300000089089us-gaap:RetainedEarningsMember2024-06-300000089089us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300000089089us-gaap:NoncontrollingInterestMember2024-06-3000000890892024-06-300000089089us-gaap:CommonStockMember2024-07-012024-09-300000089089us-gaap:TreasuryStockCommonMember2024-07-012024-09-300000089089us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-300000089089us-gaap:RetainedEarningsMember2024-07-012024-09-300000089089us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300000089089us-gaap:NoncontrollingInterestMember2024-07-012024-09-300000089089us-gaap:CommonStockMember2024-09-300000089089us-gaap:TreasuryStockCommonMember2024-09-300000089089us-gaap:AdditionalPaidInCapitalMember2024-09-300000089089us-gaap:RetainedEarningsMember2024-09-300000089089us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-300000089089us-gaap:NoncontrollingInterestMember2024-09-300000089089us-gaap:TradeAccountsReceivableMembersci:FuneralMember2024-09-300000089089us-gaap:TradeAccountsReceivableMembersci:CemeteryMember2024-09-300000089089us-gaap:TradeAccountsReceivableMembersci:OtherAccountsReceivableCurrentMember2024-09-300000089089us-gaap:NotesReceivableMembersci:CurrentMember2024-09-300000089089us-gaap:TradeAccountsReceivableMembersci:FuneralMember2023-12-310000089089us-gaap:TradeAccountsReceivableMembersci:CemeteryMember2023-12-310000089089us-gaap:TradeAccountsReceivableMembersci:OtherAccountsReceivableCurrentMember2023-12-310000089089us-gaap:NotesReceivableMembersci:CurrentMember2023-12-310000089089us-gaap:NotesReceivableMembersci:LongTermMember2024-09-300000089089us-gaap:NotesReceivableMembersci:LongTermMember2023-12-310000089089us-gaap:NotesReceivableMember2024-09-300000089089us-gaap:NotesReceivableMember2023-12-310000089089sci:MiscellaneousaccountsreceivableMembersci:LongTermMember2024-09-300000089089sci:MiscellaneousaccountsreceivableMembersci:LongTermMember2023-12-310000089089sci:MiscellaneousaccountsreceivableMember2024-09-300000089089sci:MiscellaneousaccountsreceivableMember2023-12-310000089089us-gaap:TradeAccountsReceivableMembersci:FuneralMember2024-01-012024-09-300000089089us-gaap:TradeAccountsReceivableMembersci:CemeteryMember2024-01-012024-09-300000089089us-gaap:TradeAccountsReceivableMember2023-12-310000089089us-gaap:TradeAccountsReceivableMember2024-01-012024-09-300000089089us-gaap:TradeAccountsReceivableMember2024-09-300000089089sci:MiscellaneousaccountsreceivableMembersci:CurrentMember2023-12-310000089089sci:MiscellaneousaccountsreceivableMembersci:CurrentMember2024-01-012024-09-300000089089sci:MiscellaneousaccountsreceivableMembersci:CurrentMember2024-09-300000089089sci:MiscellaneousaccountsreceivableMembersci:LongTermMember2024-01-012024-09-300000089089sci:MiscellaneousaccountsreceivableMember2024-01-012024-09-300000089089us-gaap:NotesReceivableMember2024-01-012024-09-300000089089sci:MiscellaneousaccountsreceivableMembersci:MiscellaneousReceivables1To29DaysPastDueMembersci:CurrentMember2024-09-300000089089sci:MiscellaneousaccountsreceivableMembersci:MiscellaneousReceivables30To90DaysPastDueMembersci:CurrentMember2024-09-300000089089sci:MiscellaneousaccountsreceivableMembersci:MiscellaneousReceivables91To180DaysPastDueMembersci:CurrentMember2024-09-300000089089sci:MiscellaneousaccountsreceivableMembersci:MiscellaneousReceivablesEqualToGreaterThan180DaysPastDueMembersci:CurrentMember2024-09-300000089089sci:MiscellaneousaccountsreceivableMembersci:MiscellaneousReceivables1To29DaysPastDueMembersci:LongTermMember2024-09-300000089089sci:MiscellaneousaccountsreceivableMembersci:MiscellaneousReceivables30To90DaysPastDueMembersci:LongTermMember2024-09-300000089089sci:MiscellaneousaccountsreceivableMembersci:MiscellaneousReceivables91To180DaysPastDueMembersci:LongTermMember2024-09-300000089089sci:MiscellaneousaccountsreceivableMembersci:MiscellaneousReceivablesEqualToGreaterThan180DaysPastDueMembersci:LongTermMember2024-09-300000089089sci:MiscellaneousaccountsreceivableMembersci:MiscellaneousReceivables1To29DaysPastDueMember2024-09-300000089089sci:MiscellaneousaccountsreceivableMembersci:MiscellaneousReceivables30To90DaysPastDueMember2024-09-300000089089sci:MiscellaneousaccountsreceivableMembersci:MiscellaneousReceivables91To180DaysPastDueMember2024-09-300000089089sci:MiscellaneousaccountsreceivableMembersci:MiscellaneousReceivablesEqualToGreaterThan180DaysPastDueMember2024-09-300000089089us-gaap:NotesReceivableMembersci:NoteReceivable1To29DaysPastDueMember2024-09-300000089089us-gaap:NotesReceivableMembersci:NoteReceivable30To90DaysPastDueMember2024-09-300000089089us-gaap:NotesReceivableMembersci:NoteReceivables91To180DaysPastDueMember2024-09-300000089089us-gaap:NotesReceivableMembersci:NoteReceivablesEqualToGreaterThan180DaysPastDueMember2024-09-300000089089sci:FuneralMember2024-09-300000089089sci:CemeteryMember2024-09-300000089089sci:FuneralMember2023-12-310000089089sci:CemeteryMember2023-12-310000089089sci:FinancialReceivables1To29DaysPastDueMembersci:FuneralMember2024-09-300000089089sci:FinancingReceivables30To90DaysPastDueMembersci:FuneralMember2024-09-300000089089sci:FinancingReceivables91To180DaysPastDueMembersci:FuneralMember2024-09-300000089089sci:FinancingReceivablesEqualtoGreaterthan180DaysPastDueMembersci:FuneralMember2024-09-300000089089sci:FinancialReceivables1To29DaysPastDueMembersci:CemeteryMember2024-09-300000089089sci:FinancingReceivables30To90DaysPastDueMembersci:CemeteryMember2024-09-300000089089sci:FinancingReceivables91To180DaysPastDueMembersci:CemeteryMember2024-09-300000089089sci:FinancingReceivablesEqualtoGreaterthan180DaysPastDueMembersci:CemeteryMember2024-09-300000089089sci:FinancialReceivables1To29DaysPastDueMember2024-09-300000089089sci:FinancingReceivables30To90DaysPastDueMember2024-09-300000089089sci:FinancingReceivables91To180DaysPastDueMember2024-09-300000089089sci:FinancingReceivablesEqualtoGreaterthan180DaysPastDueMember2024-09-300000089089sci:FuneralMember2024-01-012024-09-300000089089sci:CemeteryMember2024-01-012024-09-300000089089us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2024-09-300000089089us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2024-09-300000089089us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2024-09-300000089089us-gaap:FairValueInputsLevel2Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2024-09-300000089089us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMember2024-09-300000089089us-gaap:FairValueInputsLevel2Membersci:PreferredStockSecuritiesMember2024-09-300000089089us-gaap:FairValueInputsLevel1Membersci:UsCommonStockSecuritiesMember2024-09-300000089089us-gaap:FairValueInputsLevel1Membersci:CanadaCommonStockSecuritiesMember2024-09-300000089089us-gaap:FairValueInputsLevel1Membersci:OtherInternationalCommonStockSecuritiesMember2024-09-300000089089us-gaap:FairValueInputsLevel1Memberus-gaap:EquityFundsMember2024-09-300000089089us-gaap:FairValueInputsLevel1Memberus-gaap:FixedIncomeFundsMember2024-09-300000089089us-gaap:CarryingReportedAmountFairValueDisclosureMembersci:CommingledfundsFixedincMember2024-09-300000089089us-gaap:CarryingReportedAmountFairValueDisclosureMembersci:CommingledfundsEquityMember2024-09-300000089089us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:MoneyMarketFundsMember2024-09-300000089089us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:PrivateEquityFundsMember2024-09-300000089089us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-09-300000089089us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-09-300000089089us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2023-12-310000089089us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2023-12-310000089089us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2023-12-310000089089us-gaap:FairValueInputsLevel2Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2023-12-310000089089us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMember2023-12-310000089089us-gaap:FairValueInputsLevel2Membersci:PreferredStockSecuritiesMember2023-12-310000089089us-gaap:FairValueInputsLevel1Membersci:UsCommonStockSecuritiesMember2023-12-310000089089us-gaap:FairValueInputsLevel1Membersci:CanadaCommonStockSecuritiesMember2023-12-310000089089us-gaap:FairValueInputsLevel1Membersci:OtherInternationalCommonStockSecuritiesMember2023-12-310000089089us-gaap:FairValueInputsLevel1Memberus-gaap:EquityFundsMember2023-12-310000089089us-gaap:FairValueInputsLevel1Memberus-gaap:FixedIncomeFundsMember2023-12-310000089089us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310000089089us-gaap:CarryingReportedAmountFairValueDisclosureMembersci:CommingledfundsFixedincMember2023-12-310000089089us-gaap:CarryingReportedAmountFairValueDisclosureMembersci:CommingledfundsEquityMember2023-12-310000089089us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:MoneyMarketFundsMember2023-12-310000089089us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:PrivateEquityFundsMember2023-12-310000089089us-gaap:CarryingReportedAmountFairValueDisclosureMembersci:ReportedAtNetAssetValueMember2023-12-310000089089us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310000089089sci:April2027Memberus-gaap:UnsecuredDebtMember2024-09-300000089089sci:April2027Memberus-gaap:UnsecuredDebtMember2023-12-310000089089sci:December2027Memberus-gaap:UnsecuredDebtMember2024-09-300000089089sci:December2027Memberus-gaap:UnsecuredDebtMember2023-12-310000089089sci:June2029Memberus-gaap:UnsecuredDebtMember2024-09-300000089089sci:June2029Memberus-gaap:UnsecuredDebtMember2023-12-310000089089sci:August2030Memberus-gaap:UnsecuredDebtMember2024-09-300000089089sci:August2030Memberus-gaap:UnsecuredDebtMember2023-12-310000089089sci:May2031Memberus-gaap:UnsecuredDebtMember2024-09-300000089089sci:May2031Memberus-gaap:UnsecuredDebtMember2023-12-310000089089sci:October2032Memberus-gaap:UnsecuredDebtMember2024-09-300000089089sci:October2032Memberus-gaap:UnsecuredDebtMember2023-12-310000089089sci:January2028Member2024-09-300000089089sci:January2028Member2023-12-310000089089us-gaap:CapitalLeaseObligationsMember2024-09-300000089089us-gaap:CapitalLeaseObligationsMember2023-12-310000089089us-gaap:MortgagesMember2024-09-300000089089us-gaap:MortgagesMember2023-12-310000089089us-gaap:ConstructionLoansMember2023-01-012023-09-300000089089sci:October2032Member2024-01-012024-09-300000089089sci:January2028Member2024-01-012024-09-300000089089sci:TermLoansMember2023-01-012023-09-300000089089sci:January2028Member2023-01-012023-09-300000089089sci:BankCreditFacilityMember2023-01-012023-09-300000089089sci:BankCreditFacility2024Member2023-01-012023-09-300000089089sci:May2024Member2023-01-012023-09-300000089089sci:BankCreditFacility2028Member2024-01-012024-09-300000089089sci:April2027Member2024-01-012024-09-300000089089sci:BankCreditFacility2028Member2023-01-012023-09-300000089089sci:April2027Member2023-01-012023-09-300000089089sci:April2027Member2024-09-300000089089sci:April2027Member2023-12-310000089089sci:December2027Member2024-09-300000089089sci:December2027Member2023-12-310000089089sci:June2029Member2024-09-300000089089sci:June2029Member2023-12-310000089089sci:August2030Member2024-09-300000089089sci:August2030Member2023-12-310000089089sci:May2031Member2024-09-300000089089sci:May2031Member2023-12-310000089089sci:October2032Member2024-09-300000089089sci:October2032Member2023-12-310000089089sci:TermLoanJanuary2028Member2024-09-300000089089sci:BankFacilityAndTermLoanMember2023-12-310000089089sci:BankCreditFacility2028Member2024-09-300000089089sci:BankCreditFacility2028Member2023-12-310000089089us-gaap:SubsequentEventMember2024-10-012024-10-310000089089sci:FuneralAtneedRevenueMember2024-07-012024-09-300000089089sci:FuneralAtneedRevenueMember2023-07-012023-09-300000089089sci:FuneralAtneedRevenueMember2024-01-012024-09-300000089089sci:FuneralAtneedRevenueMember2023-01-012023-09-300000089089sci:FuneralMaturedPreneedRevenueMember2024-07-012024-09-300000089089sci:FuneralMaturedPreneedRevenueMember2023-07-012023-09-300000089089sci:FuneralMaturedPreneedRevenueMember2024-01-012024-09-300000089089sci:FuneralMaturedPreneedRevenueMember2023-01-012023-09-300000089089sci:FuneralCoreRevenueMember2024-07-012024-09-300000089089sci:FuneralCoreRevenueMember2023-07-012023-09-300000089089sci:FuneralCoreRevenueMember2024-01-012024-09-300000089089sci:FuneralCoreRevenueMember2023-01-012023-09-300000089089sci:NonfuneralHomeRevenueMember2024-07-012024-09-300000089089sci:NonfuneralHomeRevenueMember2023-07-012023-09-300000089089sci:NonfuneralHomeRevenueMember2024-01-012024-09-300000089089sci:NonfuneralHomeRevenueMember2023-01-012023-09-300000089089sci:NonFuneralHomePreneedSalesRevenueMember2024-07-012024-09-300000089089sci:NonFuneralHomePreneedSalesRevenueMember2023-07-012023-09-300000089089sci:NonFuneralHomePreneedSalesRevenueMember2024-01-012024-09-300000089089sci:NonFuneralHomePreneedSalesRevenueMember2023-01-012023-09-300000089089sci:FuneralOtherRevenueMember2024-07-012024-09-300000089089sci:FuneralOtherRevenueMember2023-07-012023-09-300000089089sci:FuneralOtherRevenueMember2024-01-012024-09-300000089089sci:FuneralOtherRevenueMember2023-01-012023-09-300000089089sci:FuneralMember2024-07-012024-09-300000089089sci:FuneralMember2023-07-012023-09-300000089089sci:FuneralMember2023-01-012023-09-300000089089sci:CemeteryAtneedRevenueMember2024-07-012024-09-300000089089sci:CemeteryAtneedRevenueMember2023-07-012023-09-300000089089sci:CemeteryAtneedRevenueMember2024-01-012024-09-300000089089sci:CemeteryAtneedRevenueMember2023-01-012023-09-300000089089sci:CemeteryRecognizedPreneedPropertyRevenueMember2024-07-012024-09-300000089089sci:CemeteryRecognizedPreneedPropertyRevenueMember2023-07-012023-09-300000089089sci:CemeteryRecognizedPreneedPropertyRevenueMember2024-01-012024-09-300000089089sci:CemeteryRecognizedPreneedPropertyRevenueMember2023-01-012023-09-300000089089sci:CemeteryRecognizedPreneedMerchandiseAndServiceRevenueMember2024-07-012024-09-300000089089sci:CemeteryRecognizedPreneedMerchandiseAndServiceRevenueMember2023-07-012023-09-300000089089sci:CemeteryRecognizedPreneedMerchandiseAndServiceRevenueMember2024-01-012024-09-300000089089sci:CemeteryRecognizedPreneedMerchandiseAndServiceRevenueMember2023-01-012023-09-300000089089sci:CemeteryCoreRevenueMember2024-07-012024-09-300000089089sci:CemeteryCoreRevenueMember2023-07-012023-09-300000089089sci:CemeteryCoreRevenueMember2024-01-012024-09-300000089089sci:CemeteryCoreRevenueMember2023-01-012023-09-300000089089sci:CemeteryOtherRevenueMember2024-07-012024-09-300000089089sci:CemeteryOtherRevenueMember2023-07-012023-09-300000089089sci:CemeteryOtherRevenueMember2024-01-012024-09-300000089089sci:CemeteryOtherRevenueMember2023-01-012023-09-300000089089sci:CemeteryMember2024-07-012024-09-300000089089sci:CemeteryMember2023-07-012023-09-300000089089sci:CemeteryMember2023-01-012023-09-300000089089country:US2024-07-012024-09-300000089089country:CA2024-07-012024-09-300000089089country:US2023-07-012023-09-300000089089country:CA2023-07-012023-09-300000089089country:US2024-01-012024-09-300000089089country:CA2024-01-012024-09-300000089089country:US2023-01-012023-09-300000089089country:CA2023-01-012023-09-300000089089us-gaap:EmployeeStockOptionMember2024-07-012024-09-300000089089us-gaap:EmployeeStockOptionMember2023-07-012023-09-300000089089us-gaap:EmployeeStockOptionMember2024-01-012024-09-300000089089us-gaap:EmployeeStockOptionMember2023-01-012023-09-300000089089us-gaap:RestrictedStockUnitsRSUMember2024-07-012024-09-300000089089us-gaap:RestrictedStockUnitsRSUMember2023-07-012023-09-300000089089us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-09-300000089089us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-09-300000089089sci:TopTwoAcquisitionsMember2024-01-012024-09-300000089089sci:TopTwoAcquisitionsMember2024-09-30

美國證券交易委員會

華盛頓特區20549

表格10-Q

☒						根據1934年證券交易法第13或15(d)條，進行季度報告。
						截至季度結束			2024年9月30日
									或
☐						根據1934年證券交易法第13或15(d)條款的過渡報告 轉型期從 至

委員會文件編號 1-6402-1

Service Corporation International

（依憑章程所載的完整登記名稱）

德州

74-1488375

（註冊或組織的州或其他司法管轄區）

（I.R.S. 僱主身份證號碼）

1929 年艾倫帕克威

休斯頓

德州

77019

(主要行政辦事處地址)

(郵遞區號)

註冊者的電話號碼，包括區域號碼: (713) 522-5141

根據法案第12(b)條登記的證券：

每個班級的標題

交易標的（S）

註冊的每個交易所的名稱

普通股票（票面價值1元）

SCI

紐約證券交易所

根據法案第12(g)條登記的證券： 無

請打勾表示，申報人是否(1)在過去12個月(或申報人被要求提交此等報告的較短時期)已按照1934年證券交易法第13或15(d)條的要求提交所有報告，並(2)在過去90天內一直需要遵守這些報告的要求。

是

þ

沒有

¨

請勾選表示，申報人是否在過去12個月（或申報人需要提交此類檔案的較短期間）已遵守《S-t條例第405條規定》要求遞交的每個互動資料檔案。

是

þ

沒有

¨

請透過勾選表示，申報人是一家大型加速遞交者、加速遞交者、非加速遞交者、較小的報告公司還是新興成長公司。請參見交易所法案120億2條中對「大型加速遞交者」、「加速遞交者」、「較小的報告公司」和「新興成長公司」的定義。（請選擇其中一個）：

大型加速歸檔人

þ

加速歸檔人

¨

非加速歸檔人

¨

小型報告公司

☐

新興成長型企業

☐

如果是新興成長公司，請打勾表示公司選擇不使用根據《交易法》第13(a)條所提供的任何新的或修訂的財務會計準則的延長過渡期。

¨

請擇交易名標記，表明公司是否屬於外殻公司（依照法案120億2條定義）。

是

☐

沒有

þ

截至2024年10月31日，登記公司普通股的流通股數為 144,628,958 （扣除庫藏股）。

---

Service Corporation International 指数
控制項Page
詞彙表						3
第一部分. 財務資料						5
项目1。			基本報表			5
			未經核數的基本報表營運總表 - 截至2024年9月30日和2023年的三個月和九個月			5
			未經審計的綜合損益簡明綜合報表 - 截至2024年9月30日和2023年的三個月和九個月			6
			未經審計的簡明綜合資產負債表 - 2024年9月30日和2023年12月31日的未經審計簡明綜合財務狀況表			7
			未經審計的簡明綜合現金流量表 - 截至2024年9月30日和2023年的九個月的未經審計簡明綜合報表			8
			未經審計的簡明綜合權益報表 - 三個月d 九 截至九個月期結束 2024年9月30日及2023年			9
			基本報表未經審核簡明合併財務報表註腳			11
			1. 業務性質			11
			2. 重大會計政策摘要			11
			3. 預先安排活動			14
			4. 所得稅			20
			5. 负债			20
			6. 信用風險和金融工具的公允價值			22
			7. 股本			23
			8. 分部報告			24
			9. 承諾和條件			25
			10. 每股盈利			26
			11. 收購和處分相關活動			27
项目2。			管理層對財務狀況和業績的討論與分析			29
			這家公司			29
			財務狀况、流动性和资本资源			29
			營運業績 - 2024年9月30日及2023年三個月 九 M月結果 2024年9月30日＆2023年			36
			重要會計政策			42
			關於前瞻性陳述的警語			42
项目3。			有關市場風險的定量和定性披露			44
项目4。			內部控制及程序			44
第二部分其他資訊						45
项目1。			法律訴訟			45
项目1A。			風險因素			45
项目2。			股票權益的未註冊銷售和資金用途			45
项目3。			優先證券違約			45
项目4。			礦業安全披露			45
项目5。			其他信息			45
第6項。			展品			46
簽名						47

2 服務公司國際

---

詞彙表

以下術語在死亡服務行業中常見，本報告中使用，並具有以下含義:

Atneed 逝者殯葬，包括火化和墓地安排，在死亡後出售。

每項服務的平均營業收入 — 每個葬禮服務的平均營業收入，不包括非葬禮家喪事業預售收入、核心總代理收入和特定其他營業收入。

取消 — 終止預先合同，使我們免除在合同中提供的商品和服務的義務。 取消可能是由客戶要求或因我們未能遵守合同付款條款而由我們發起。 州或省法律規定應向客戶返還的金額（如果有）。

Care Trusts的Corpus - 永久托管信託中包含的存款和淨實現資本收益可能不可提取。在某些州，部分或全部淨實現資本收益也可以分配。此外，某些州允許包含收入、資本增值和本金元素的總回報分配。

墓地標誌 墓地標誌 — 用於標示特定墓地、地下室、壁龕或火葬紀念物業中逝者身份的物品。永久墓地和火葬紀念墓地標誌通常由青銅或石材石料製成。

墓地商品和服務 在墓地葬禮中使用的商品和服務，包括石材和青銅紀念碑，墓地標記，外殯容器，插花，墓地服務，商品安裝，骨灰罐和埋葬。

永久墓地永久護理基金或資產基金（ECF） 一個旨在永久維護墓地和財產的信託基金。對於這些信託，本金將永久留在信託中，投資收益或選擇的分配將定期提取，並旨在支付我們維護墓地所產生的開支。在某些州份，一些或所有淨實現資本收益也可以分配。此外，一些州份允許總回報分配，其中可能包含收入、資本增值和本金的元素。

墓地財產 — 發展用地、草坪地下墓室、陵墓用地、壁龕、靈骨塔以及火葬紀念用地（已建成並準備好接受安葬）、以及我們計劃開發用於出售安葬權的未開發土地。包括在開發新建地產項目的前施工和施工階段期間的在建項目餘額。

Cemetery Property Amortization or Amortization of Cemetery Property — The non-cash recognized expenses of cemetery property interment rights, which are recorded by specific identification with the cemetery property revenue for each contract.

Cemetery Property Interment Rights — The exclusive right to determine the human remains that will be interred in a specific cemetery property space. See also Cemetery Property Revenue below.

Cemetery Property Revenue — Recognized sales of interment rights in cemetery property when the receivable is deemed collectible and the property is fully constructed and available for interment.

Combination Location (Combos) — Locations where a funeral service location is physically located within or adjoining a SCI-owned cemetery location.

Cremation — The reduction of human remains to bone fragments by intense heat.

Cremation Memorialization — Products specifically designed to commemorate and honor the life of an individual who has been cremated. These products include cemetery property items that provide for the disposition of cremated remains within our cemeteries such as benches, boulders, statues, niches, etc. They also include memorial walls and books where the name of the individual is inscribed but the remains have been scattered or kept by the family.

Cremation Niche — An above-ground burial space, in which a decedent's urn, containing their cremated remains, is placed and sometimes sealed.

Funeral Merchandise and Services — Merchandise such as burial caskets and related accessories, outer burial containers, urns and other cremation receptacles, casket and cremation memorialization products, flowers, and professional services relating to funerals including arranging and directing services, use of funeral facilities and motor vehicles, removal, preparation, embalming, cremations, memorialization, visitations, travel protection, and catering.

Funeral Services Performed — The number of funeral services, including cremations, provided after the date of death, sometimes referred to as funeral volume.

General Agency (GA) Revenue — Commissions we receive from third-party life insurance companies for life insurance policies sold to preneed customers for the purpose of funding preneed funeral arrangements. The commission rate paid is determined based on the product type sold, the length of payment terms, and the health and age of the insured/annuitant.

FORm 10-Q 3

---

安葬 ——人類遺體的安葬或最終放置在地下（安葬），在陵墓（埋葬），或在壁龕或火化紀念產業中（安葬）。

草坪地下墓 － 墓地場地中已預先安裝了混凝土和鋼鐵加固的地下外部埋葬容器。

到期日 在交付基礎合同商品或提供服務時，通常在死亡時。這是預先安排的喪葬合同轉換爲臨時合同的時刻（注意，某些商品和服務可以在死亡前交付）。

陵墓 —— 一種地上結構，用於容納棺材和/或火化壇。

商品和服務信託 —— 根據州或省法律設立的信託帳戶，我們在其中存入顧客付款的所需比例，以供將來我們提供或執行的殯葬、火葬或墓地商品和服務。存入的金額只能在我們根據預先需求合同履行完我們的責任後或在合同取消後才能取出。也稱爲預需要信託。

非殯儀館預先銷售營業收入 — 非殯儀館總代銷售收入以及向預先客戶銷售的商品和旅行保障收入(淨數)，並在死亡發生前交付。

墓地外部存放容器 ——一種強化容器，旨在阻止土壤下沉並容納棺材，安放在地下後，也被稱爲埋葬穹頂。

Preneed ——在死亡發生之前購買墓地所有權或任何葬禮或墓地商品和服務。

待辦銷售訂單或待辦營業收入 未完成的預訂葬禮、火化和墓地合同安排所帶來的未來營業收入。

預先需求公墓銷售產量 - 預先需求公墓合同的銷售。這些銷售記錄在 遞延收入，淨額 直到商品交付，服務完成，或物業已建成並可用於安葬。

預售葬禮銷售產量 —— 預售葬禮信託基金和保險基金合同的銷售。預售葬禮信託基金合同的銷售記錄在 遞延收入，淨額 直到商品交付或服務執行爲止。我們在資產負債表中不反映未履行的保險基金預定葬禮合同金額。壽險保單的收益將作爲未來我們執行的這些葬禮的營業收入反映出來。

預付賬款淨額 從客戶那裏收取的款項，當我們交付商品、提供服務或在死亡發生前轉移墓地產權時，或者從不可撤銷的預先約定合同中客戶那裏收到的款項。

旅行保護 一項由第三方提供的服務，如果購買者在其住宅一定半徑範圍之外身故，則提供其遺體運送至選擇的殯儀館。

信託基金收入 — 我們的商品、服務和永續關愛信託投資所產生的認可投資收益。

在本使用中，「SCI」、「公司」、「我們」、「我們的」和「我們」的指的是service corporation international及service corporation international直接或間接擁有的公司，除非情境另有要求。管理層已經在公司網站上發佈了一篇關於預先銷售會計處理進一步理解的白皮書。您可以在特色板塊下的網站http://investors.sci-corp.com查看白皮書。我們網站上的文件和信息並未在此引文中納入。

4 國際服務公司

---

第一部分 財務信息

項目1.基本報表

service corporation international

綜合損益表合併簡表（未經審計）       

			截至9月30日的三個月，															截至9月30日的九個月
			2024						2023									2024						2023
			2024年4月27日
營業收入
財產和商品銷售收入			$	504,565					$	520,651								$	1,549,461					$	1,568,750
服務收入			422,739						407,471									1,295,701						1,256,919
其他收入			86,654						73,737									248,194						218,313
總收入			1,013,958						1,001,859									3,093,356						3,043,982
營業成本
財產和商品成本			(259,168)						(263,251)									(794,176)						(795,152)
服務支出			(232,989)						(225,673)									(706,646)						(686,705)
一般管理費用和其他費用			(269,162)						(259,252)									(807,767)						(757,880)
營業成本			(761,319)						(748,176)									(2,308,589)						(2,239,737)
毛利潤			252,639						253,683									784,767						804,245
公司總部行政費用			(43,732)						(33,213)									(124,055)						(112,294)
減值轉讓收益和減值損失，淨額			3,515						2,542									4,755						10,187
營業利潤			212,422						223,012									665,467						702,138
利息支出			(65,804)						(61,512)									(194,540)						(174,904)
提前清償債務損失			(25)						—									(25)						(1,114)
其他收入，淨額			2,815						128									7,002						2,647
稅前收入			149,408						161,628									477,904						528,767
所得稅費用			(31,547)						(39,585)									(110,549)						(129,543)
淨收入			117,861						122,043									367,355						399,224
歸屬於非控股權益的淨收入			(34)						(72)									(61)						(302)
歸屬於普通股股東的淨收益			$	117,827					$	121,971								$	367,294					$	398,922
基本每股收益:
歸屬於普通股股東的淨收益			$	0.81					$	0.81								$	2.53					$	2.63
基本加權平均股數			144,706						150,630									145,421						151,654
每股攤薄收益:
歸屬於普通股股東的淨收益			$	0.81					$	0.80								$	2.50					$	2.60
稀釋加權平均股數			146,223						152,289									146,978						153,554

(請參閱未經審計的簡明合併基本報表註解)

FORm 10-Q 5

---

第一部分

service corporation international

綜合損益簡明合併報表（未經審計）

						截至9月30日的三個月，									截至9月30日的九個月
												2024						2023			2024						2023
												（以千爲單位）
淨收入												$	117,861					$	122,043		$	367,355					$	399,224
其他綜合收益:
外幣翻譯調整												4,894						(9,298)			(7,503)						(1,215)
總綜合收益												122,755						112,745			359,852						398,009
歸屬於非控股權益的綜合收益總額												(35)						(69)			(58)						(299)
歸屬於普通股股東的綜合收益總額												$	122,720					$	112,676		$	359,794					$	397,710

(請參閱未經審計的簡明合併基本報表註解)

6 Service Corporation International

---

第一部分

service corporation international

未經審計的壓縮合並資產負債表

			2024年9月30日						2023年12月31日
			（單位：千元，股份數量除外）
資產
流動資產：
現金及現金等價物			$	185,420					$	221,557
Receivables, net of reserves of $4,022 和 $4,382 的壞賬準備			80,955						97,939
存貨			34,571						33,597
應收所得稅			52,487						122,183
其他			35,661						23,010
總流動資產			389,094						498,286
預付款應收款淨額，減除$準備金36,041 和 $32,475，分別，以及信託投資			6,766,755						6,191,912
公墓地產			2,113,801						2,020,846
資產和設備，淨值			2,564,241						2,480,099
商譽			2,084,790						1,977,186
延期費用及其他資產，減少準備金$2,392 和 $2,345 的壞賬準備			1,324,768						1,247,830
公墓永久護理信託投資			2,162,902						1,939,241
總資產			$	17,406,351					$	16,355,400
負債及權益
流動負債:
應付賬款及應計費用			$	658,837					$	685,759
長期債務的流動部分			84,349						63,341
流動負債合計			743,186						749,100
長期債務			4,743,679						4,649,155
遞延收入，淨額			1,750,755						1,703,509
遞延所得稅負債			655,486						638,106
其他負債			506,388						464,935
trust持有的遞延收入			5,225,878						4,670,884
護理trust的corpus			2,153,178						1,938,238
承諾和 contingencies（注9）
股東權益：
普通股，每股面值爲 $0.0001；1 每股面值， 500,000,000 149,741,975和頁面。148,297,042 ，分別發行了股票。 144,979,108和頁面。146,323,340分別擁有 和 股已發行股份			144,979						146,323
超過面值的資本			972,511						937,596
保留盈餘			492,294						432,454
累計其他綜合收益			17,391						24,891
普通股股東權益合計			1,627,175						1,541,264
非控制權益			626						209
股東權益總計			1,627,801						1,541,473
負債和所有者權益總額			$	17,406,351					$	16,355,400

(See notes to unaudited condensed consolidated financial statements)

FORM 10-Q 7

---

PART I

Service Corporation International

Condensed Consolidated Statement of Cash Flows (Unaudited)

			Nine months ended September 30,
			2024						2023
			(In thousands)
Cash flows from operating activities:
Net income			$	367,355					$	399,224
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on early extinguishment of debt			25						1,114
Depreciation and amortization			153,932						141,228
Amortization of intangibles			12,759						14,158
Amortization of cemetery property			70,431						71,892
Amortization of loan costs			5,365						5,133
Provision for expected credit losses			9,693						6,997
Provision for deferred income taxes			15,243						166,786
Gains on divestitures and impairment charges, net			(4,755)						(10,187)
Share-based compensation			12,042						11,786
Change in assets and liabilities, net of effects from acquisitions and divestitures:
Decrease in receivables			11,366						11,781
Decrease (increase) in other assets			12,464						(161,687)
Increase (decrease) in payables and other liabilities			20,768						(21,961)
Effect of preneed sales production and maturities:
Increase in preneed receivables, net and trust investments			(139,876)						(162,087)
Increase in deferred revenue, net			83,331						105,923
Increase in deferred receipts held in trust			50,652						11,358
Net cash provided by operating activities			680,795						591,458
Cash flows from investing activities:
Capital expenditures			(276,837)						(267,752)
Business acquisitions, net of cash acquired			(161,865)						(72,535)
Real estate acquisitions			(53,329)						(41,084)
Proceeds from divestitures and sales of property and equipment			21,632						22,713
Payments for Company-owned life insurance policies			(3,009)						(8,050)
Proceeds from Company-owned life insurance policies and other			2,673						10,119
Other investing activities			(13,864)						—
Net cash used in investing activities			(484,599)						(356,589)
Cash flows from financing activities:
Proceeds from issuance of long-term debt			1,336,137						737,433
Debt issuance costs			(15,246)						(7,471)
Scheduled payments of debt			(18,421)						(16,402)
Early payments and extinguishment of debt			(1,210,024)						(490,973)
Principal payments on finance leases			(27,524)						(25,678)
Proceeds from exercise of stock options			42,898						16,106
Purchase of Company common stock			(197,511)						(340,279)
Payments of dividends			(130,811)						(125,543)
Bank overdrafts and other			(10,253)						(9,362)
Net cash used in financing activities			(230,755)						(262,169)
Effect of foreign currency			(1,566)						(298)
Net decrease in cash, cash equivalents, and restricted cash			(36,125)						(27,598)
Cash, cash equivalents, and restricted cash at beginning of period			224,761						204,524
Cash, cash equivalents, and restricted cash at end of period			$	188,636					$	176,926

(See notes to unaudited condensed consolidated financial statements)

8 Service Corporation International

---

PART I

Service Corporation International

Condensed Consolidated Statement of Equity (Unaudited)

			Common Stock						Treasury Stock, Par Value						Capital in Excess of Par Value						Retained Earnings						Accumulated Other Comprehensive Income						Noncontrolling Interest						Total
			(In thousands, except per share amounts)
Balance at December 31, 2022			$	156,089					$	(2,149)					$	958,329					$	544,384					$	16,538					$	232					$	1,673,423
Comprehensive income			—						—						—						144,763						299						65						145,127
Dividends declared on common stock ($0.27 per share)			—						—						—						(41,207)						—						—						(41,207)
Employee share-based compensation earned			—						—						4,478						—						—						—						4,478
Stock option exercises			298						—						8,465						—						—						—						8,763
Restricted stock awards, net of forfeitures			132						1						(133)						—						—						—						—
Purchase of Company common stock			—						(2,432)						(16,500)						(148,373)						—						—						(167,305)
Noncontrolling interest payments			—						—						—						—						—						(107)						(107)
Other			—						—						(1,271)						—						—						—						(1,271)
Balance at March 31, 2023			$	156,519					$	(4,580)					$	953,368					$	499,567					$	16,837					$	190					$	1,621,901
Comprehensive income (loss)			—						—						—						132,188						7,784						165						140,137
Dividends declared on common stock ($0.27 per share)			—						—						—						(40,780)						—						—						(40,780)
Employee share-based compensation earned			—						—						3,671						—						—						—						3,671
Stock option exercises			232						—						5,569						—						—						—						5,801
Purchase of Company common stock			—						(1,260)						(8,603)						(76,996)						—						—						(86,859)
Noncontrolling interest payments			—						—						—						—						—						(101)						(101)
Other			24						—						1,597						—						—						—						1,621
Balance at June 30, 2023			$	156,775					$	(5,840)					$	955,602					$	513,979					$	24,621					$	254					$	1,645,391
Comprehensive income (loss)			—						—						—						121,971						(9,295)						69						112,745
Dividends declared on common stock ($0.29 per share)			—						—						—						(43,556)						—						—						(43,556)
Employee share-based compensation earned			—						—						3,637						—						—						—						3,637
Stock option exercises			60						—						1,482						—						—						—						1,542
Purchase of Company common stock			—						(1,440)						(9,982)						(77,583)						—						—						(89,005)
Noncontrolling interest payments			—						—						—						—						—						(59)						(59)
Balance at September 30, 2023			$	156,835					$	(7,280)					$	950,739					$	514,811					$	15,326					$	264					$	1,630,695

FORM 10-Q 9

---

PART I

Service Corporation International

Condensed Consolidated Statement of Equity (Unaudited)

			Common Stock						Treasury Stock, Par Value						Capital in Excess of Par Value						Retained Earnings						Accumulated Other Comprehensive Income						Noncontrolling Interest						Total
			(In thousands, except per share amounts)
Balance at December 31, 2023			$	148,298					$	(1,975)					$	937,596					$	432,454					$	24,891					$	209					$	1,541,473
Comprehensive income (loss)			—						—						—						131,301						(8,477)						(30)						122,794
Dividends declared on common stock ($0.30 per share)			—						—						—						(43,944)						—						—						(43,944)
Employee share-based compensation earned			—						—						3,926						—						—						—						3,926
Stock option exercises			544						—						16,693						—						—						—						17,237
Restricted stock awards, net of forfeitures			138						—						(138)						—						—						—						—
Purchase of Company common stock			—						(706)						(4,518)						(44,266)						—						—						(49,490)
Other			—						—						(1,215)						—						—						—						(1,215)
Balance at March 31, 2024			$	148,980					$	(2,681)					$	952,344					$	475,545					$	16,414					$	179					$	1,590,781
Comprehensive income (loss)			—						—						—						118,166						(3,916)						53						114,303
Dividends declared on common stock ($0.30 per share)			—						—						—						(43,384)						—						—						(43,384)
Employee share-based compensation earned			—						—						4,040						—						—						—						4,040
Stock option exercises			14						—						608						—						—						—						622
Purchase of Company common stock			—						(1,799)						(12,942)						(113,431)						—						—						(128,172)
Noncontrolling interest payments			—						—						—						—						—						(120)						(120)
Other			24						—						1,596						—						—						—						1,620
Balance at June 30, 2024			$	149,018					$	(4,480)					$	945,646					$	436,896					$	12,498					$	112					$	1,539,690
Comprehensive income			—						—						—						117,827						4,893						35						122,755
Dividends declared on common stock ($0.30 per share)			—						—						—						(43,483)						—						—						(43,483)
Employee share-based compensation earned			—						—						4,076						—						—						—						4,076
Stock option exercises			725						—						24,314						—						—						—						25,039
Purchase of Company common stock			—						(284)						(1,525)						(18,946)						—						—						(20,755)
Noncontrolling interest proceeds			—						—						—						—						—						479						479
Balance at September 30, 2024			$	149,743					$	(4,764)					$	972,511					$	492,294					$	17,391					$	626					$	1,627,801

(See notes to unaudited condensed consolidated financial statements)

10 Service Corporation International

---

PART I

Service Corporation International

Notes to Unaudited Condensed Consolidated Financial Statements

1. Nature of Operations

Service Corporation International (SCI) is a holding company and all operations are conducted by its subsidiaries. We are North America’s largest provider of deathcare products and services, with a network of funeral service locations and cemeteries operating in the United States and Canada. Our funeral service and cemetery operations consist of funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and other related businesses, which enable us to serve a wide array of customer needs. We sell cemetery property and funeral and cemetery merchandise and services at the time of need and on a preneed basis. We strive to offer families exceptional service in planning life celebrations and personalized remembrances.

Funeral service locations provide all professional services relating to funerals and cremations, including the use of funeral facilities and motor vehicles, arranging and directing services, removal, preparation, embalming, cremations, memorialization, travel protection, and catering. Funeral merchandise, including burial caskets and related accessories, urns and other cremation receptacles, outer burial containers, flowers, online and video tributes, stationery products, casket and cremation memorialization products, and other ancillary merchandise, is sold at funeral service locations.

Our cemeteries provide cemetery property interment rights, including developed lots, lawn crypts, mausoleum spaces, cremation niches, and other cremation memorialization and interment options. Cemetery merchandise and services, including cemetery markers and bases, outer burial containers, flowers and floral placement, other ancillary merchandise, graveside memorial services, merchandise installation, and interments, are sold at our cemeteries.

2. Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

Our unaudited condensed consolidated financial statements include the accounts of Service Corporation International and all subsidiaries in which we hold a controlling financial interest. Intercompany balances and transactions have been eliminated in consolidation.

Our unaudited condensed consolidated financial statements also include the accounts of the merchandise, service, and cemetery perpetual care trusts in which we have a variable interest and are the primary beneficiary. We have retained the specialized industry accounting principles when consolidating the trusts. Although we consolidate the trusts, it does not change the legal relationships among the trusts, us, or our customers. The customers are the legal beneficiaries of these trusts; therefore, their interests in these trusts represent a liability to us.

Our interim condensed consolidated financial statements are unaudited but include all adjustments, consisting of normal recurring accruals and any other adjustments, which management considers necessary for a fair statement of our results for these periods. Our unaudited condensed consolidated financial statements have been prepared in a manner consistent with the accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2023, unless otherwise disclosed herein, and should be read in conjunction therewith. The accompanying year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year period. Certain reclassifications have been made to prior period amounts to conform to the current period disclosure presentation with no effect on our consolidated net income or cash flows.

Use of Estimates in the Preparation of Financial Statements

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. As a result, actual results could differ from these estimates.

Cash, Cash Equivalents, and Restricted Cash

We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. The carrying amounts of our cash and cash equivalents approximate fair value due to the short-term nature of these instruments.

FORM 10-Q 11

---

PART I

The components of cash, cash equivalents, and restricted cash were as follows:

			September 30, 2024						December 31, 2023
			(In thousands)
Cash and cash equivalents			$	185,420					$	221,557
Restricted cash
Included in Other current assets			384						370
Included in Deferred charges and other assets, net			2,832						2,834
Total restricted cash			3,216						3,204
Total cash, cash equivalents, and restricted cash			$	188,636					$	224,761

Receivables, net

The components of Receivables, net in our unaudited Condensed Consolidated Balance Sheet were as follows:

			September 30, 2024
			Atneed Funeral						Atneed Cemetery						Miscellaneous						Current Portion of Notes						Total
			(In thousands)
Receivables			$	33,510					$	19,092					$	32,208					$	167					$	84,977
Reserve for credit losses			(1,513)						(2,015)						(384)						(110)						(4,022)
Receivables, net			$	31,997					$	17,077					$	31,824					$	57					$	80,955

			December 31, 2023
			Atneed Funeral						Atneed Cemetery						Miscellaneous						Current Portion of Notes						Total
			(In thousands)
Receivables			$	35,572					$	19,277					$	47,297					$	175					$	102,321
Reserve for credit losses			(1,784)						(2,118)						(343)						(137)						(4,382)
Receivables, net			$	33,788					$	17,159					$	46,954					$	38					$	97,939

Additionally, included in Deferred charges and other assets, net were long-term miscellaneous receivables, net and notes receivable, net as follows:

			September 30, 2024						December 31, 2023
			(In thousands)
Notes receivable			$	10,426					$	10,294
Reserve for credit losses			(1,796)						(1,797)
Notes receivable, net			$	8,630					$	8,497
Long-term miscellaneous receivables			$	8,607					$	7,888
Reserve for credit losses			(596)						(548)
Long-term miscellaneous receivables, net			$	8,011					$	7,340

12 Service Corporation International

---

PART I

The following table summarizes the activity in our reserve for credit losses by portfolio segment, excluding preneed receivables which are presented in Note 3, for the nine months ended September 30, 2024:

			December 31, 2023						(Provision) Benefit for Expected Credit Losses												Write Offs						Recoveries						Effect of Foreign Currency and Other						September 30, 2024
			(In thousands)
Trade receivables:
Funeral			$	(1,784)					$	(3,214)											$	5,022					$	(1,631)					$	94					$	(1,513)
Cemetery			(2,118)						(557)												1,145						(485)						—						(2,015)
Total reserve for credit losses on trade receivables			$	(3,902)					$	(3,771)											$	6,167					$	(2,116)					$	94					$	(3,528)
Miscellaneous receivables:
Current			$	(343)					$	(41)											$	—					$	—					$	—					$	(384)
Long-term			(548)						(49)												1						—						—						(596)
Total reserve for credit losses on miscellaneous receivables			$	(891)					$	(90)											$	1					$	—					$	—					$	(980)
Notes receivable			$	(1,934)					$	24											$	1					$	—					$	3					$	(1,906)

At September 30, 2024, the amortized cost basis of our miscellaneous and notes receivables by year of origination was as follows:

			2024						2023						2022						2021						2020						Prior						Revolving Line of Credit						Total
			(In thousands)
Miscellaneous receivables:
Current			$	28,356					$	2,742					$	681					$	401					$	16					$	12					$	—					$	32,208
Long-term			3,541						2,761						1,511						674						69						51						—						8,607
Total miscellaneous receivables			$	31,897					$	5,503					$	2,192					$	1,075					$	85					$	63					$	—					$	40,815
Notes receivable			$	—					$	—					$	—					$	—					$	—					$	4,564					$	6,029					$	10,593

At September 30, 2024, the payment status of our miscellaneous and notes receivables was as follows:

			Past Due
			<30 Days						30-90 Days						90-180 Days						>180 Days						Total						Current						Total
			(In thousands)
Miscellaneous receivables:
Current			$	—					$	110					$	28					$	2,681					$	2,819					$	29,389					$	32,208
Long-term			—						—						—						—						—						8,607						8,607
Total miscellaneous receivables			$	—					$	110					$	28					$	2,681					$	2,819					$	37,996					$	40,815
Notes receivable			$	—					$	—					$	—					$	1,114					$	1,114					$	9,479					$	10,593

FORM 10-Q 13

---

PART I

Recently Issued Accounting Standards

Segments

In November 2023, the FASB amended the reportable segment guidance by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss. This new guidance also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The guidance is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted. This amendment is effective for our fiscal year ending December 31, 2024. We are currently assessing the impact of this guidance on our disclosures. Upon adoption, we will include the required disclosures in our financial statements and related notes.

Income Tax

In December 2023, the FASB amended guidance that requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The new guidance is effective on a prospective basis for annual periods beginning after December 15, 2024 and early adoption is also permitted. We are currently assessing the impact of this guidance on our disclosures. Upon adoption, we will include the required disclosures in our financial statements and related notes.

3. Preneed Activities

Preneed Receivables, Net and Trust Investments

The components of Preneed receivables, net and trust investments in our unaudited Condensed Consolidated Balance Sheet were as follows:

			September 30, 2024						December 31, 2023
			(In thousands)
Preneed receivables, net			$	1,536,200					$	1,513,933
Trust investments, at market			7,154,424						6,394,796
Insurance-backed fixed income securities and other			239,033						222,424
Trust investments			7,393,457						6,617,220
Less: Cemetery perpetual care trust investments			(2,162,902)						(1,939,241)
Preneed trust investments			5,230,555						4,677,979
Preneed receivables, net and trust investments			$	6,766,755					$	6,191,912

14 Service Corporation International

---

PART I

Preneed receivables, net comprised the following:

			September 30, 2024
			Funeral						Cemetery						Total
			(In thousands)
Preneed receivables			$	193,636					$	1,398,008					$	1,591,644
Unearned finance charges			(10,709)						(8,694)						(19,403)
Preneed receivables, at amortized cost			182,927						1,389,314						1,572,241
Reserve for credit losses			(19,548)						(16,493)						(36,041)
Preneed receivables, net			$	163,379					$	1,372,821					$	1,536,200
			December 31, 2023
			Funeral						Cemetery						Total
			(In thousands)
Preneed receivables			$	190,514					$	1,371,804					$	1,562,318
Unearned finance charges			(10,100)						(5,810)						(15,910)
Preneed receivables, at amortized cost			180,414						1,365,994						1,546,408
Reserve for credit losses			(17,026)						(15,449)						(32,475)
Preneed receivables, net			$	163,388					$	1,350,545					$	1,513,933

At September 30, 2024, the amortized cost basis of our preneed receivables by year of origination was as follows:

			2024						2023						2022						2021						2020						Prior						Total
			(In thousands)
Preneed receivables, at amortized cost:
Funeral			$	51,950					$	58,360					$	31,908					$	15,051					$	7,457					$	18,201					$	182,927
Cemetery			410,033						429,934						288,226						155,323						71,924						33,874						1,389,314
Total preneed receivables, at amortized cost			$	461,983					$	488,294					$	320,134					$	170,374					$	79,381					$	52,075					$	1,572,241

At September 30, 2024, the payment status of our preneed receivables was as follows:

			Past Due
			<30 Days						30-90 Days						90-180 Days						>180 Days						Total						Current						Total
			(In thousands)
Preneed receivables, at amortized cost:
Funeral			$	4,849					$	3,278					$	7,503					$	30,946					$	46,576					$	136,351					$	182,927
Cemetery			59,585						47,939						15,097						5,274						127,895						1,261,419						1,389,314
Total preneed receivables, at amortized cost			$	64,434					$	51,217					$	22,600					$	36,220					$	174,471					$	1,397,770					$	1,572,241

FORM 10-Q 15

---

PART I

The following table summarizes the activity for the reserve for credit losses on preneed receivables for the nine months ended September 30, 2024:

			December 31, 2023						Provision for Expected Credit Losses												Write Offs												Effect of Foreign Currency and Other						September 30, 2024
			(In thousands)
Funeral			$	(17,026)					$	(4,346)											$	1,770											$	54					$	(19,548)
Cemetery			(15,449)						(1,510)												460												6						(16,493)
Total reserve for credit losses on preneed receivables			$	(32,475)					$	(5,856)											$	2,230											$	60					$	(36,041)

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

			Three months ended September 30,												Nine months ended September 30,
			2024						2023						2024						2023
			(In thousands)
Deposits			$	164,064					$	143,148					$	479,924					$	434,210
Withdrawals			$	161,622					$	135,995					$	431,816					$	404,790
Purchases of securities			$	350,799					$	420,796					$	1,433,451					$	1,566,090
Sales of securities			$	384,336					$	375,021					$	1,443,426					$	1,540,936
Realized gains from sales of securities(1)			$	94,604					$	51,612					$	373,094					$	205,493
Realized losses from sales of securities(1)			$	(31,283)					$	(42,316)					$	(88,834)					$	(144,562)

(1)All realized gains and losses are recognized in Other income, net for our trust investments and are offset by a corresponding reclassification in Other income, net to Deferred receipts held in trust and Care trusts’ corpus.

16 Service Corporation International

---

PART I

The cost and market values associated with trust investments recorded at market value are detailed below. Cost reflects the investment (net of redemptions) of control holders in the trusts. Fair value represents the value of the underlying securities held by the trusts.

						September 30, 2024
			Fair Value Hierarchy Level			Cost						Unrealized Gains						Unrealized Losses						Value
												(In thousands)
Fixed income securities:
U.S. Treasury			2			$	42,544					$	285					$	(793)					$	42,036
Canadian government			2			28,064						—						—						28,064
Corporate			2			10,601						401						(11)						10,991
Residential mortgage-backed			2			3,478						84						(45)						3,517
Asset-backed			2			290						—						(47)						243
Equity securities:
Preferred stock			2			413						—						(46)						367
Common stock:
United States			1			1,888,727						624,071						(52,370)						2,460,428
Canada			1			42,970						18,110						(394)						60,686
Other international			1			109,844						37,180						(6,085)						140,939
Mutual funds:
Equity			1			911,579						205,067						(1,220)						1,115,426
Fixed income			1			1,107,891						11,413						(95,064)						1,024,240
Trust investments, at fair value						4,146,401						896,611						(156,075)						4,886,937
Commingled funds
Fixed income						829,824						5,284						(46,085)						789,023
Equity						338,774						133,326						—						472,100
Money market funds						407,209						—						—						407,209
Alternative investments						432,982						175,291						(9,118)						599,155
Trust investments, at net asset value						2,008,789						313,901						(55,203)						2,267,487
Trust investments, at market						$	6,155,190					$	1,210,512					$	(211,278)					$	7,154,424

FORM 10-Q 17

---

PART I

						December 31, 2023
			Fair Value Hierarchy Level			Cost						Unrealized Gains						Unrealized Losses						Value
												(In thousands)
Fixed income securities:
U.S. Treasury			2			$	45,645					$	145					$	(1,376)					$	44,414
Canadian government			2			31,896						—						—						31,896
Corporate			2			10,642						138						(17)						10,763
Residential mortgage-backed			2			5,452						29						(104)						5,377
Asset-backed			2			291						—						(51)						240
Equity securities:
Preferred stock			2			417						—						(97)						320
Common stock:
United States			1			1,744,919						478,226						(78,630)						2,144,515
Canada			1			42,721						20,251						(676)						62,296
Other international			1			108,106						19,580						(11,088)						116,598
Mutual funds:
Equity			1			876,620						118,476						(9,540)						985,556
Fixed income			1			998,767						5,727						(109,231)						895,263
Trust investments, at fair value						3,865,476						642,572						(210,810)						4,297,238
Commingled funds
Fixed income						827,600						2,432						(63,021)						767,011
Equity						337,500						71,819						(642)						408,677
Money market funds						346,672						—						—						346,672
Alternative investments						412,482						169,825						(7,109)						575,198
Trust investments, at net asset value						1,924,254						244,076						(70,772)						2,097,558
Trust investments, at market						$	5,789,730					$	886,648					$	(281,582)					$	6,394,796

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 2024 to 2040. Maturities of fixed income securities (excluding mutual and commingled funds) at September 30, 2024 are estimated as follows:

			Fair Value
			(In thousands)
Due in one year or less			$	54,164
Due in one to five years			25,927
Due in five to ten years			4,686
Thereafter			74
Total estimated maturities of fixed income securities			$	84,851

Recognized trust fund income (realized and unrealized) related to our preneed trust investments was $45.7 million and $44.0 million for the three months ended September 30, 2024 and 2023, respectively. Recognized trust fund income (realized and unrealized) related to our cemetery perpetual care trust investments was $24.7 million and $20.1 million for the three months ended September 30, 2024 and 2023, respectively.

Recognized trust fund income (realized and unrealized) related to our preneed trust investments was $134.3 million and $121.3 million for the nine months ended September 30, 2024 and 2023, respectively. Recognized trust fund income (realized

18 Service Corporation International

---

PART I

and unrealized) related to our cemetery perpetual care trust investments was $73.5 million and $63.5 million for the nine months ended September 30, 2024 and 2023, respectively.

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:

			September 30, 2024						December 31, 2023
			(In thousands)
Deferred revenue			$	2,767,335					$	2,649,397
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts			(1,016,580)						(945,888)
Deferred revenue, net			$	1,750,755					$	1,703,509

The following table summarizes the activity for our contract liabilities, which are reflected in Deferred revenue, net and Deferred receipts held in trust:

			Nine months ended September 30,
			2024						2023
			(In thousands)
Beginning balance — Deferred revenue, net and Deferred receipts held in trust			$	6,374,393					$	5,787,548
Net preneed contract sales			1,061,518						1,098,816
Acquisitions (dispositions) of businesses, net			76,077						(386)
Net investment gains(1)			453,863						167,596
Recognized revenue from backlog(2)			(443,685)						(449,098)
Recognized revenue from current period sales			(469,085)						(504,649)
Change in amounts due on unfulfilled performance obligations			(68,662)						(78,974)
Change in cancellation reserve			(188)						30
Effect of foreign currency and other			(7,598)						(17,533)
Ending balance — Deferred revenue, net and Deferred receipts held in trust			$	6,976,633					$	6,003,350

(1)Includes both realized and unrealized investment gains (losses)

(2)Includes current year trust fund income through the date of performance

FORM 10-Q 19

---

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 21.1% and 24.5% for the three months ended September 30, 2024 and 2023, respectively. Our effective tax rate was 23.1% and 24.5% for the nine months ended September 30, 2024 and 2023, respectively. The lower effective tax rate for the three and nine months ended September 30, 2024 was primarily due to more excess tax benefits recognized on the settlement of employee share-based awards. The effective tax rates for the three and nine months ended September 30, 2024 were higher than the federal statutory tax rate of 21.0% primarily due to state tax expense, partially offset by excess tax benefits recognized on the settlement of employee share-based awards.

We actively participate in tax credit equity investments for projects eligible to receive renewable energy tax credits. These investments, accounted for under the equity method, are recorded in Deferred charges and other assets, net of reserves on our unaudited Condensed Consolidated Balance Sheet. Upon realization, tax credits associated with these investments are recognized as a reduction of tax expense. This reduction is offset by amortization of the investment in proportion to the tax benefits received during the period under the proportional amortization method. During 2024, we recognized investment tax credits and other tax benefits totaling $10.7 million and amortized the equity investment by $10.7 million to reflect the realization of these benefits. This amortization is reflected within the Provision for income taxes in our unaudited Condensed Consolidated Statement of Operations.

Unrecognized Tax Benefits

As of September 30, 2024, the total amount of our unrecognized tax benefits was $1.3 million and the total amount of our accrued interest was approximately $1.1 million.

The federal statutes of limitation have expired for all tax years prior to 2021, and we are not currently under audit by the IRS. Various state and foreign jurisdictions are auditing years 2015 through 2022. 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:

			September 30, 2024						December 31, 2023
			(In thousands)
7.5% Senior Notes due April 2027			$	136,924					$	137,424
4.625% Senior Notes due December 2027			550,000						550,000
5.125% Senior Notes due June 2029			750,000						750,000
3.375% Senior Notes due August 2030			850,000						850,000
4.0% Senior Notes due May 2031			800,000						800,000
5.75% Senior Notes due October 2032			800,000						—
Term Loan due January 2028			645,469						658,125
Bank Credit Facility due January 2028			110,000						790,000
Obligations under finance leases			142,841						132,039
Mortgage notes and other debt, maturities through 2050			88,415						80,696
Unamortized debt issuance costs			(45,621)						(35,788)
Total debt			4,828,028						4,712,496
Less: Current maturities of long-term debt			(84,349)						(63,341)
Total long-term debt			$	4,743,679					$	4,649,155

Current maturities of debt at September 30, 2024 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 84% and 69% of our total debt had a fixed interest rate at September 30, 2024 and December 31, 2023, respectively.

20 Service Corporation International

---

PART I

The components of our ending interest rate are as follows:

			September 30, 2024						December 31, 2023
Fixed Debt			4.64		%				4.35		%
Floating Debt			6.98		%				7.44		%
Total Debt			5.00		%				5.29		%

During the nine months ended September 30, 2024 and 2023, we paid $172.5 million and $149.0 million in cash interest, respectively.

Bank Credit Agreement

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 September 30, 2024, we were in compliance with all of our debt covenants. We have $39.0 million of letters of credit outstanding and pay a quarterly fee of 0.20% on the unused commitment at September 30, 2024. As of September 30, 2024, we had $1,351.0 million in borrowing capacity under the Bank Credit Facility. The Bank Credit Facility had an interest rate of 6.95% and 7.46% at September 30, 2024 and December 31, 2023, respectively.

Building Financing

In August 2024, we entered into a new $129.9 million construction loan agreement due 2037 with a syndicate of banks. The purpose of this loan is to provide financing for a new corporate headquarters building. This transaction resulted in additional debt issuance costs of $1.1 million. As of September 30, 2024, we had no borrowing outstanding.

Debt Issuances and Additions

During the nine months ended September 30, 2024, we issued or added $1,336.1 million of debt including:

•$800.0 million unsecured 5.75% Senior Notes due October 2032;

•$530.0 million on our Bank Credit Facility due January 2028; and

•$6.1 million in other debt.

Net proceeds from newly issued debt during the nine months ended September 30, 2024 were used to pay down our Bank Credit Facility due January 2028 and for general corporate purposes. These transactions resulted in additional debt issuance costs of $14.1 million.

During the nine months ended September 30, 2023, we issued or added $737.4 million of debt including:

•$284.1 million from certain members of the syndicate of banks in our Term Loan;

•$380.0 million on our Bank Credit Facility due January 2028;

•$44.3 million 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

•$19.0 million in other debt.

Net proceeds from newly issued debt during the nine months ended September 30, 2023 were used to pay off our Bank Credit Facility due May 2024, our 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 nine months ended September 30, 2024, we made aggregate debt payments of $1,228.5 million for scheduled and early debt extinguishment payments including:

•$1,210.0 million in aggregate principal of our Bank Credit Facility due January 2028;

•$12.7 million in aggregate principal of our Term Loan due January 2028;

•$0.5 million in aggregate principal of our 7.5% Senior Notes due April 2027 repurchased in the open market; and

•$5.3 million in other debt.

FORM 10-Q 21

---

PART I

During the nine months ended September 30, 2023, we made aggregate debt payments of $507.4 million for scheduled and early debt extinguishment payments including:

•$199.3 million in aggregate principal to other members of our Bank Credit Facility;

•$145.3 million in aggregate principal to other members of our Term Loan;

•$145.0 million in aggregate principal of our Bank Credit Facility due January 2028;

•$12.7 million in aggregate principal of our Term Loan due January 2028;

•$0.9 million in aggregate principal of our 7.5% Senior Notes due April 2027 repurchased in the open market;

•$0.5 million of premiums paid on early extinguishment of debt; and

•$3.7 million in other debt.

Certain of the 2023 transactions resulted in a loss of $1.1 million recorded in Losses on early extinguishment of debt in our unaudited Condensed Consolidated Statement of Operations.

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.

The fair value of our debt instruments was as follows:

			September 30, 2024						December 31, 2023
			(In thousands)
7.5% Senior Notes due April 2027			$	143,118					$	142,749
4.625% Senior Notes due December 2027			542,465						532,125
5.125% Senior Notes due June 2029			749,258						732,173
3.375% Senior Notes due August 2030			769,446						739,500
4.0% Senior Notes due May 2031			743,400						711,336
5.75% Senior Notes due October 2032			805,632						—
Term Loan due January 2028			645,469						658,125
Bank Credit Facility due January 2028			110,000						790,000
Mortgage notes and other debt, maturities through 2050			87,185						79,426
Total fair value of debt instruments			$	4,595,973					$	4,385,434

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.

22 Service Corporation International

---

PART I

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 nine months ended September 30, 2024, we repurchased 2,789,165 shares of common stock at an aggregate cost of $198.4 million, which is an average cost per share of $71.13. After these repurchases, the remaining dollar value of shares authorized to be purchased under the share repurchase program was $331.0 million at September 30, 2024.

Subsequent to September 30, 2024, we repurchased 337,273 shares for $25.5 million at an average cost per share of $75.72. After these repurchases, the remaining dollar value of shares authorized to be purchased under the share repurchase program is $305.4 million.

FORM 10-Q 23

---

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 September 30,												Nine months ended September 30,
			2024						2023						2024						2023
			(In thousands)
Revenue from customers:
Funeral revenue:
Atneed revenue			$	289,077					$	282,979					$	887,812					$	884,835
Matured preneed revenue			173,759						172,272						542,488						533,678
Core funeral revenue			462,836						455,251						1,430,300						1,418,513
Non-funeral home revenue			23,214						21,949						69,765						63,651
Non-funeral home preneed sales revenue			26,923						32,009						85,141						109,140
Core general agency and other revenue			53,006						45,574						151,292						138,562
Total funeral revenue			565,979						554,783						1,736,498						1,729,866
Cemetery revenue:
Atneed revenue			106,965						110,214						324,390						328,450
Recognized preneed property revenue			203,376						214,585						628,223						625,985
Recognized preneed merchandise and services revenue			103,585						93,113						301,844						269,129
Core cemetery revenue			413,926						417,912						1,254,457						1,223,564
Other revenue			34,053						29,164						102,401						90,552
Total cemetery revenue			447,979						447,076						1,356,858						1,314,116
Total revenue from customers			$	1,013,958					$	1,001,859					$	3,093,356					$	3,043,982
Gross profit:
Funeral gross profit			$	107,878					$	109,747					$	340,178					$	374,750
Cemetery gross profit			144,761						143,936						444,589						429,495
Gross profit from reportable segments			252,639						253,683						784,767						804,245
Corporate general and administrative expenses			(43,732)						(33,213)						(124,055)						(112,294)
Gains on divestitures and impairment charges, net			3,515						2,542						4,755						10,187
Operating income			212,422						223,012						665,467						702,138
Interest expense			(65,804)						(61,512)						(194,540)						(174,904)
Losses on early extinguishment of debt			(25)						—						(25)						(1,114)
Other income, net			2,815						128						7,002						2,647
Income before income taxes			$	149,408					$	161,628					$	477,904					$	528,767

24 Service Corporation International

---

PART I

Our geographic area information was as follows:

			United States						Canada						Total
			(In thousands)
Three months ended September 30,
Revenue from external customers:
2024			$	961,866					$	52,092					$	1,013,958
2023			$	950,750					$	51,109					$	1,001,859
Nine months ended September 30,
Revenue from external customers:
2024			$	2,928,382					$	164,974					$	3,093,356
2023			$	2,879,076					$	164,906					$	3,043,982

9. Commitments and Contingencies

Insurance Loss Reserves

We purchase various insurance products with high deductibles including: comprehensive general liability, morticians and cemetery professional liability, automobile liability, and workers’ compensation. The high-deductible insurance program means we are primarily self-insured for claims and associated costs and losses covered by these policies. As of September 30, 2024 and December 31, 2023, we had self-insurance reserves of $105.1 million and $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 practice 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 these matters. We accrue such insurance recoveries when they become probable of being paid and can be reasonably estimated.

Operational Claims. We are named as a defendant in various lawsuits alleging operational claims, including but not limited to the State of California 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. The parties have reached a settlement of the lawsuit that includes civil penalties of $23 million and provides certain preneed contract consumers the right to receive refunds. The court has approved the settlement, the civil penalties have been paid as of June 30, 2024, and the administrative claims process is underway. The claims period closed on October 7, 2024, and although customers may request refunds beyond that date, we maintain a reserve that we believe is sufficient to cover all costs related to the settlement. The settlement represents a compromise of contested claims and does not contain any admission of wrongdoing or fault on the part of the Company, its board of directors, or executive officers in the action settlement.

FORM 10-Q 25

---

PART I

Unclaimed Property Audits

We have received notices from auditors representing the unclaimed property departments of approximately forty states regarding the escheatment of preneed trust funds held in association with unused preneed funeral and cemetery contracts ("Unused Preneed Trust Funds"). The states claim that these Unused Preneed Trust Funds are subject to the states’ unclaimed property or escheatment laws and generally assert that all or a portion of the Unused 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 Wyoming. We consider the unclaimed property audits resolved in those eighteen 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 and 2024.

We have reserved all of our rights, claims, and defenses. Given the nature of 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.

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 September 30,						Nine months ended September 30,
			2024						2023			2024						2023
			(In thousands, except per share amounts)
Amounts attributable to common stockholders:
Net income — basic and diluted			$	117,827					$	121,971		$	367,294					$	398,922
Weighted average shares:
Weighted average shares — basic			144,706						150,630			145,421						151,654
Stock options			1,452						1,602			1,499						1,842
Restricted share units			65						57			58						58
Weighted average shares — diluted			146,223						152,289			146,978						153,554
Amounts attributable to common stockholders:
Earnings per share:
Basic			$	0.81					$	0.81		$	2.53					$	2.63
Diluted			$	0.81					$	0.80		$	2.50					$	2.60

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 September 30,									Nine months ended September 30,
			2024						2023			2024						2023
			(In thousands)
Antidilutive options			754						891			693						313

26 Service Corporation International

---

PART II

11. Acquisitions and Divestiture-Related Activities

Acquisitions

We spent $164.2 million and $72.5 million for several business acquisitions during the nine months ended September 30, 2024 and 2023, respectively. This includes $2.3 million of cash acquired. In addition, we acquired $53.3 million and $41.1 million for several real estate acquisitions during the nine months ended September 30, 2024 and 2023, respectively.

In the third quarter of 2024, we acquired a total of 10 funeral homes and 2 cemeteries, including one combination location, for $123.4 million in total cash. This includes two separate acquisitions in major metropolitan markets for $120.6 million in cash.

The primary reasons for the acquisitions and the principal factors that contributed to the recognition of goodwill in these acquisitions were:

•the acquisitions enhance our network footprint, enabling us to serve a number of complementary areas; and

•the acquisitions of the preneed backlog of deferred revenues enhance our long-term stability.

The following table summarizes the fair values of the assets acquired and liabilities assumed in the two separate acquisitions (in thousands):

Other current assets			$	2,735
Cemetery property			1,972
Property and equipment, net			49,931
Preneed receivables, net and trust investments			50,028
Indefinite-lived intangible assets			24,316
Deferred charges and other assets			340
Cemetery perpetual care trust investments			9,223
Goodwill			72,664
Total assets acquired			211,209
Current liabilities			2,631
Deferred revenue and deferred receipts held in trust			60,060
Long-term debt			15,431
Deferred tax liability			2,688
Care trusts' corpus			9,223
Other liabilities			529
Total liabilities assumed			90,562
Net assets acquired			$	120,647

The purchase accounting is preliminary as we have not finalized our assessment of the fair value because there has been insufficient time between the acquisition date and the issuance of these financial statements to complete our review and final determination of fair value.

Goodwill, land, and certain identifiable intangible assets recorded in the acquisition are not subject to amortization; however, the goodwill and intangible assets will be tested periodically for impairment. Of the $72.7 million in recognized goodwill, $59.1 million is deductible for tax purposes. Of this total, $25.8 million was allocated to our cemetery segment, while $46.9 million was allocated to our funeral segment. Tradenames comprise the identified intangible assets.

We incurred acquisition costs of $0.3 million, which is included in General and administrative expenses in our Consolidated Statement of Operations.

Pro forma summary results for the twelve months ended December 31, 2023 and the nine months ended September 30, 2024 have not been provided as it is impracticable to do so given the extent of integration activities to date.

FORM 10-Q 27

---

PART II

Divestiture-Related Activities

As divestitures occur in the normal course of business, gains or losses on the sale of such locations are recognized in the unaudited Condensed Consolidated Statement of Operations line item Gains on divestitures and impairment charges, net, which comprised the following:

			Three months ended September 30,												Nine months ended September 30,
			2024						2023						2024						2023
			(In thousands)
Gains on divestitures, net			$	7,445					$	2,542					$	9,764					$	10,187
Impairment losses			(3,930)						—						(5,009)						—
Gains on divestitures and impairment charges, net			$	3,515					$	2,542					$	4,755					$	10,187

28 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 September 30, 2024, we operated 1,495 funeral service locations and 494 cemeteries (including 307 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. Our financial position is enhanced by our $16.0 billion backlog of future revenue from both trust and insurance-funded preneed sales at September 30, 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 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.

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.

For further discussion of our key operating metrics, see our "Cash Flow" and “Results of Operations” sections below.

Financial Condition, Liquidity, and Capital Resources

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.

Capital Allocation Considerations

We rely on cash flow from operations as a significant source of liquidity. Our cash flow from operating activities provided $680.8 million in the first nine months of 2024. As of September 30, 2024, we had $1,351.0 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 at September 30, 2024. We target a leverage ratio of 3.5x to 4.0x.

Our leverage ratio requirement and actual ratio as of September 30, 2024 were as follows:

			Per Credit Agreement						Actual
Leverage ratio			5.00 (Max)						3.78

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. A 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.

FORM 10-Q 29

---

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 and cemetery 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 and cemetery locations in areas that provide us with the potential for scale.

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 $0.30 per common share in 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 $680.8 million and $591.5 million for the nine months ended September 30, 2024 and 2023, respectively.

The $89.3 million increase in operating cash flows from 2023 comprises:

•a $63.9 million decrease in cash tax payments,

•a $59.7 million increase in cash receipts from customers,

•a $39.6 million increase in General Agency (GA) commission and other receipts, and

•a $0.1 million decrease in employee compensation payments, partially offset by

•a $23.5 million increase in cash interest payments,

•a $16.8 million increase in vendor and other payments,

•a $18.8 million increase in net trust deposits, and

•a $14.9 million increase in payments for certain legal matters.

Investing Activities

Cash flows from investing activities used $484.6 million and $356.6 million for the nine months ended September 30, 2024 and 2023, respectively. The $128.0 million increased outflow in 2024 over 2023 is primarily due to the following:

•a $89.3 million increase in cash spent on business acquisitions,

•a $13.9 million increase in other investing activities primarily for investments in renewable energy tax credits,

•a $12.2 million increase in cash spent on real estate acquisitions,

•a $9.1 million increase in total capital expenditures which comprises:

•a $3.7 million net increase in maintenance capital expenditures, which includes:

•a $15.5 million decrease in expenditures for digital investments and corporate,

•a $10.6 million increase in expenditures for cemetery property development, and

•a $8.6 million increase in expenditures for capital improvements at existing field locations.

•a $5.4 million increase in expenditures for growth capital expenditures/construction of new funeral service locations.

•a $2.4 million decrease in net proceeds for Company-owned life insurance policies, and

30 Service Corporation International

---

PART I

•a $1.1 million decrease in cash receipts from divestitures and asset sales.

Financing Activities

Financing activities used $230.8 million for the nine months ended September 30, 2024 compared to using $262.2 million for the same period in 2023. The $31.4 million decreased outflow from 2024 over 2023 is primarily due to the following:

•a $142.8 million decrease in purchase of Company common stock,

•a $26.8 million increase in proceeds from exercises of stock options, partially offset by

•a $132.0 million increase in debt repayments, net of proceeds,

•a $5.3 million increase in payments of dividends, and

•a $0.9 million change in bank overdrafts and 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.

			September 30, 2024						December 31, 2023
			(In millions)
Preneed funeral			$	226.8					$	67.8
Preneed cemetery:
Merchandise and services			135.6						141.3
Pre-construction			56.5						54.6
Bonds supporting preneed funeral and cemetery obligations			418.9						263.7
Bonds supporting preneed business permits			7.9						7.6
Other bonds			27.0						25.4
Total surety bonds outstanding			$	453.8					$	296.7

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.

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.

As of September 30, 2024, we had an increase of $161.7 million in surety bonds supporting preneed funeral obligations related to certain legal matters discussed in Part I, Item 1. Financial Statements, Note 9.

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 31

---

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. In early July 2024, we finalized our agreement to change our preferred preneed insurance provider in the United States, which will allow us to further utilize our scale and streamline our processes across our network.

The table below details our results of insurance-funded preneed production and maturities.

			Three months ended September 30,												Nine months ended September 30,
			2024						2023						2024						2023
			(Dollars in millions)
Preneed insurance-funded:
Sales production(1)			$	174.4					$	176.1					$	548.9					$	537.4
Sales production (number of contracts)(1)			29,127						28,284						89,050						87,128
General agency revenue			$	59.3					$	49.0					$	163.3					$	139.8
Maturities			$	97.6					$	93.0					$	304.7					$	291.5
Maturities (number of contracts)			15,680						15,005						48,671						47,202

(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.

32 Service Corporation International

---

PART I

The tables below detail our results of preneed production and maturities, excluding insurance contracts:

			Three months ended September 30,												Nine months ended September 30,
			2024						2023						2024						2023
			(Dollars in millions)
Funeral:
Preneed trust-funded (including bonded):
Sales production			$	121.1					$	138.4					$	391.3					$	418.2
Sales production (number of contracts)			29,188						33,782						95,436						102,881
Maturities			$	91.1					$	93.0					$	281.9					$	280.6
Maturities (number of contracts)			20,217						20,072						63,214						63,230
Cemetery:
Sales production:
Preneed			$	312.7					$	322.2					$	994.3					$	981.5
Atneed			105.5						103.1						319.9						317.9
Total sales production			$	418.2					$	425.3					$	1,314.2					$	1,299.4
Sales production deferred to backlog:
Preneed			$	150.9					$	162.0					$	467.8					$	486.8
Atneed			73.6						72.1						228.4						224.6
Total sales production deferred to backlog			$	224.5					$	234.1					$	696.2					$	711.4
Revenue recognized from backlog:
Preneed			$	113.1					$	132.3					$	335.1					$	356.5
Atneed			74.7						78.2						230.1						233.2
Total revenue recognized from backlog			$	187.8					$	210.5					$	565.2					$	589.7

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 September 30, 2024 and December 31, 2023. Additionally, the table reflects our backlog of unfulfilled insurance-funded contracts (which are not included in our unaudited Condensed Consolidated Balance Sheet) at September 30, 2024 and December 31, 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 33

---

PART I

			September 30, 2024												December 31, 2023
			Fair Value						Cost						Fair Value						Cost
			(In billions)
Deferred revenue, net			$	1.75					$	1.75					$	1.70					$	1.70
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts			1.02						1.02						0.95						0.95
Deferred receipts held in trust			5.23						4.47						4.67						4.18
Allowance for cancellation on trust investments			(0.30)						(0.25)						(0.26)						(0.24)
Backlog of trust-funded deferred revenue, net of estimated allowance for cancellation			7.70						6.99						7.06						6.59
Backlog of insurance-funded revenue(1)			8.29						8.29						7.78						7.78
Total backlog of deferred revenue			$	15.99					$	15.28					$	14.84					$	14.37
Preneed receivables, net and trust investments			$	6.77					$	6.02					$	6.19					$	5.70
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts			1.02						1.02						0.95						0.95
Allowance for cancellation on trust investments			(0.30)						(0.25)						(0.26)						(0.24)
Assets associated with backlog of trust-funded deferred revenue, net of estimated allowance for cancellation			7.49						6.79						6.88						6.41
Insurance policies associated with insurance-funded deferred revenue (1)			8.29						8.29						7.78						7.78
Total assets associated with backlog of preneed revenue			$	15.78					$	15.08					$	14.66					$	14.19

(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 September 30, 2024, the difference between the backlog and asset market amounts represents $0.17 billion related to contracts for which we have posted surety bonds as financial assurance in lieu of trusting, $1.39 billion collected from customers that were not required to be deposited into trusts, and $0.19 billion in allowable cash distributions from trust assets partially offset by $1.54 billion in amounts due on delivered property and merchandise. As of September 30, 2024, the fair value of the total backlog comprised $4.58 billion related to cemetery contracts and $11.41 billion related to funeral contracts. As of September 30, 2024, the fair value of the assets associated with the backlog of trust-funded deferred revenue comprised $4.59 billion related to cemetery contracts and $2.90 billion related to funeral contracts. As of September 30, 2024, the backlog of insurance-funded contracts of $8.29 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

34 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 September 30, 2024, approximately 98% of our trusts were under the control and custody of four large financial institutions. The U.S. trustees primarily use four managed limited liability companies (LLCs), two for funeral and cemetery merchandise and service trust types and two for the cemetery perpetual care trust types, 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 allow the trusts to access, at a reduced cost, some of the same investment managers and strategies used elsewhere in the portfolios.

Separately managed accounts are 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.

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 September 30, 2024, the largest single equity position represented approximately 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 35

---

PART I

Trust Performance

During the nine months ended September 30, 2024, the Standard and Poor’s 500 Index increased 22.1% and the Bloomberg’s US Aggregate Bond Index decreased 4.5%. This compares to SCI trusts that returned 12.8% during the same period, which exceeded our internal custom benchmark. The SCI trusts have a diversified allocation of approximately 60% equities, 27% fixed income securities, 9% alternative and other investments with the remaining 5% available in money market funds.

Recognized trust fund income (realized and unrealized) related to our preneed trust investments was $134.3 million and $121.3 million for the nine months ended September 30, 2024 and 2023, respectively. Recognized trust fund income (realized and unrealized) related to our cemetery perpetual care trust investments was $73.5 million and $63.5 million for the nine months ended September 30, 2024 and 2023, respectively. The increase in recognized trust fund income is primarily due to the market returns experienced over the trailing twelve month period.

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 and Nine months ended September 30, 2024 and 2023

Three Months Ended September 30, 2024 and 2023

Management Summary

In the third quarter of 2024, we reported consolidated net income attributable to common stockholders of $117.8 million ($0.81 per diluted share) compared to net income attributable to common stockholders in the third quarter of 2023 of $122.0 million ($0.80 per diluted share). These results were impacted by certain items including:

			Three months ended September 30,
			2024						2023
			(In millions)
Pre-tax gains on divestitures and impairment charges, net			$	3.5					$	2.5
Tax effect from significant items			$	(1.1)					$	(0.5)
Change in uncertain tax reserves and other			$	0.1					$	0.9

In addition to the above items, operating results are relatively flat over the prior year quarter. Also, higher interest expense and corporate general and administrative expenses were partially offset by a lower tax rate and lower share count.

36 Service Corporation International

---

PART I

Funeral Results

			Three months ended September 30,
			2024						2023
			(Dollars in millions, except average revenue per service)
Consolidated funeral revenue			$	566.0					$	554.8
Less: revenue associated with acquisitions/new construction			9.0						3.1
Less: revenue associated with divestitures			0.1						1.8
Comparable(1) funeral revenue			556.9						549.9
Less: non-funeral home preneed sales revenue			26.5						32.0
Less: core general agency and other revenue			52.7						45.1
Adjusted comparable funeral revenue			$	477.7					$	472.8
Comparable services performed			83,804						84,470
Comparable average revenue per service(2)			$	5,700					$	5,597
Consolidated funeral gross profit			$	107.9					$	109.7
Less: gross profit (loss) associated with acquisitions/new construction			1.0						(0.1)
Less: gross (loss) profit associated with divestitures			(0.5)						0.9
Comparable(1) funeral gross profit			$	107.4					$	108.9

(1)    We define comparable (or same store) operations as those funeral locations owned by us for the entire period beginning January 1, 2023 and ending September 30, 2024.

(2)    We calculate comparable average revenue per service by dividing comparable funeral revenue, excluding general agency revenue, recognized preneed 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 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 $566.0 million for the three months ended September 30, 2024 compared to $554.8 million for the same period in 2023. This $11.2 million increase is primarily attributable to the $5.9 million increase in revenue from acquired and newly constructed properties and the $7.0 million increase in comparable revenue.

Comparable revenue from funeral operations was $556.9 million for the three months ended September 30, 2024 compared to $549.9 million for the same period in 2023. This $7.0 million, or 1.3%, increase is primarily due to a $4.4 million increase in core funeral revenue and a $7.6 million increase in core general agency revenue and other revenue offset by a $5.5 million decrease in non-funeral home preneed sales revenue.

The core funeral revenue increased by $4.4 million, or 1.0%, primarily due to a favorable 2.1% increase in core average revenue per service. This core average growth was achieved in light of an increase in the core cremation rate of 30 basis points to 56.8%. Non-funeral home preneed sales revenue decreased by $5.5 million, or 17.2%, primarily due to a decline of non-funeral home preneed sales production of $8.1 million, or 10.4%, impacted by our transition from trust to insurance-funded contracts. Core general agency and other revenue grew $7.6 million, primarily due to growth in general agency revenue from higher commission rates, primarily as a result of our new preneed insurance marketing agreement.

Funeral Gross Profit

Consolidated funeral gross profit decreased $1.8 million, or 1.6%, for the three months ended September 30, 2024 compared to the same period in 2023. This decrease is primarily attributable to the decrease in comparable funeral gross profit of $1.5 million, or 1.4%. Comparable funeral gross profit decreased $1.5 million to $107.4 million and the comparable gross profit percentage decreased from 19.8% to 19.3%. The stability in gross profit, in light of modest revenue growth, reflects our continued focus on managing our fixed cost structure.

FORM 10-Q 37

---

PART I

Cemetery Results

			Three months ended September 30,
			2024						2023
			(In millions)
Consolidated cemetery revenue			$	448.0					$	447.1
Less: revenue associated with acquisitions/new construction			1.4						0.4
Less: revenue associated with divestitures			—						0.1
Comparable(1) cemetery revenue			$	446.6					$	446.6
Consolidated cemetery gross profit			$	144.8					$	143.9
Less: gross loss associated with acquisitions/new construction			(0.1)						(0.4)
Comparable(1) cemetery gross profit			$	144.9					$	144.3

(1)    We define comparable (or same store) operations as those cemetery locations owned by us for the entire period beginning January 1, 2023 and ending September 30, 2024.

Cemetery Revenue

Consolidated revenue from our cemetery operations increased $0.9 million, or 0.2%, for the three months ended September 30, 2024 compared to the same period in 2023 primarily due to a $1.0 million increase in revenue contributed by newly constructed and acquired properties.

The comparable cemetery revenue was flat to prior year primarily due to a $4.8 million decrease in core revenue, which was offset by a $4.8 million increase in other revenue. The decrease in core revenue was driven by a $3.5 million decline in atneed revenue combined with a $1.3 million decrease in total recognized preneed revenue. Growth in recognized preneed merchandise and service revenue of $10.3 million from higher quality sales averages maturing out of the backlog was offset by a decline of $11.6 million in recognized preneed property revenue. Other revenue was higher by $4.8 million, or 16.5%, compared to the prior year quarter primarily from an increase in endowment care trust fund income related to the expansion of our total return investment strategy in certain states.

Cemetery Gross Profit

Consolidated cemetery gross profit slightly increased $0.9 million, or 0.6%, in the three months ended September 30, 2024 compared to the same period in 2023, which is primarily attributable to a $0.3 million increase in gross profit contributed by newly constructed and acquired properties and a $0.6 million increase in comparable cemetery gross profit. Comparable cemetery gross profit slightly increased $0.6 million to $144.9 million, and the gross profit percentage increased to 32.4% from 32.3%. This growth in gross profit on relatively flat revenue reflects our continued focus on managing our fixed cost structure.

Other Financial Statement Items

Corporate General and Administrative Expenses

Corporate general and administrative expenses were $43.7 million in the third quarter of 2024 compared to the third quarter of 2023 of $33.2 million. The current year third quarter was pressured by long-term incentive compensation plan expenses that were impacted by the growth in our stock price. Conversely, during the prior year third quarter we saw a decline in our stock price benefiting our long-term incentive compensation plan expenses.

Gains on Divestitures and Impairment Charges, Net

We recognized a $3.5 million net pre-tax gain on asset divestitures and impairments in the third quarter of 2024 compared to a $2.5 million net pre-tax gain in the third quarter of 2023 on asset divestitures due to non-strategic asset divestitures.

Interest Expense

Interest expense increased $4.3 million to $65.8 million for the third quarter of 2024 primarily due to higher average balances quarter over quarter on our floating rate debt.

Other Income, Net

Other income, net increased $2.7 million to $2.8 million for the three months ended September 30, 2024 primarily due to higher investment income from higher investment balances and new investment products compared to the prior year.

FORM 10-Q 38

---

PART I

Provision for Income Taxes

Our effective tax rate was 21.1% and 24.5% for the three months ended September 30, 2024 and 2023, respectively. The lower effective tax rate for the three months ended September 30, 2024 was primarily due to more excess tax benefits recognized on the settlement of employee share-based awards. The effective tax rate for the three months ended September 30, 2024 was higher than the federal statutory tax rate of 21.0% primarily due to state tax expense, partially offset by excess tax benefits recognized on the settlement of employee share-based awards.

Weighted Average Shares

The diluted weighted average number of shares outstanding was 146.2 million for the three months ended September 30, 2024 compared to 152.3 million for the same period in 2023. The decrease primarily reflects the impact of shares repurchased under our share repurchase program.

Nine Months Ended September 30, 2024 and 2023

Management Summary

In the first nine months of 2024, we reported consolidated net income attributable to common stockholders of $367.3 million ($2.50 per diluted share) compared to net income attributable to common stockholders for the same period in 2023 of $398.9 million ($2.60 per diluted share). These results were impacted by certain items including:

			Nine months ended September 30,
			2024						2023
			(In millions)
Pre-tax gains on divestitures and impairment charges, net			$	4.8					$	10.2
Pre-tax losses on early extinguishment of debt			$	—					$	(1.1)
Tax effect from significant items			$	(1.6)					$	(2.5)
Change in uncertain tax reserves and other			$	1.0					$	1.4

In addition to the above items, the decrease from the prior year is primarily due to lower funeral gross profit on lower services performed which was partially offset by slightly higher cemetery gross profit. Also, higher interest expense and corporate general and administrative expenses were partially offset by a lower tax rate and lower share count.

FORM 10-Q 39

---

PART I

Funeral Results

			Nine months ended September 30,
			2024						2023
			(Dollars in millions, except average revenue per service)
Consolidated funeral revenue			$	1,736.5					$	1,729.9
Less: revenue associated with acquisitions/new construction			20.7						4.9
Less: revenue associated with divestitures			1.6						4.4
Comparable(1) funeral revenue			1,714.2						1,720.6
Less: non-funeral home preneed sales revenue			84.3						109.1
Less: core general agency and other revenue			150.1						137.5
Adjusted comparable funeral revenue			$	1,479.8					$	1,474.0
Comparable services performed			261,755						267,261
Comparable average revenue per service(2)			$	5,653					$	5,515
Consolidated funeral gross profit			$	340.2					$	374.8
Less: gross profit associated with acquisitions/new construction			2.0						0.1
Less: gross profit (losses) associated with divestitures			0.1						0.4
Comparable(1) funeral gross profit			$	338.1					$	374.3

(1)    We define comparable (or same store) operations as those funeral locations owned by us for the entire period beginning January 1, 2023 and ending September 30, 2024.

(2)    We calculate comparable average revenue per service by dividing comparable funeral revenue, excluding general agency revenue, non-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.

Funeral Revenue

Consolidated revenue from funeral operations was $1,736.5 million for the nine months ended September 30, 2024, compared to $1,729.9 million for the same period in 2023. This $6.6 million increase is primarily attributable to $15.8 million of growth in revenue contributed by acquired and newly constructed properties offset by a $6.4 million decrease in comparable revenue as described below.

Comparable revenue from funeral operations was $1,714.2 million for the nine months ended September 30, 2024 compared to $1,720.6 million for the same period in 2023. The $6.4 million decrease was due to a $24.8 million decrease in non-funeral home preneed sales revenue, partially offset by an increase of $12.6 million in core general agency and other revenue.

Non-funeral home preneed sales revenue decreased by $24.8 million primarily due to a decline of non-funeral home preneed sales production of $10.5 million, or 4.5%, impacted by our transition from trust to insurance-funded contracts. Core general agency and other revenue grew $12.6 million, primarily due to growth in general agency revenue from higher commission rates, primarily as a result of our new preneed insurance marketing agreement.

Funeral Gross Profit

Consolidated funeral gross profit decreased $34.6 million, or 9.2%, in the first nine months of 2024 compared to the same period in 2023. This decrease is primarily attributable to the $36.2 million, or 9.7%, decrease in comparable funeral gross profit. Comparable funeral gross profit decreased $36.2 million to $338.1 million and the comparable gross profit percentage decreased from 21.8% to 19.7%. This decrease is primarily due to the decline in revenue described above coupled with higher fixed costs, including the timing of incentive compensation costs compared to the prior year.

FORM 10-Q 40

---

PART I

Cemetery Results

			Nine months ended September 30,
			2024						2023
			(In millions)
Consolidated cemetery revenue			$	1,356.9					$	1,314.1
Less: revenue associated with acquisitions/new construction			11.1						0.4
Less: revenue associated with divestitures			(0.1)						0.9
Comparable(1) cemetery revenue			$	1,345.9					$	1,312.8
Consolidated cemetery gross profit			$	444.6					$	429.5
Less: gross profit (loss) associated with acquisitions/new construction			6.2						(0.8)
Less: gross (loss) profit associated with divestitures			(0.2)						0.1
Comparable(1) cemetery gross profit			$	438.6					$	430.2

(1)    We define comparable (or same store) operations as those cemetery locations owned by us for the entire period beginning January 1, 2023 and ending September 30, 2024.

Cemetery Revenue

Consolidated revenue from our cemetery operations increased $42.8 million, or 3.3%, for the nine months ended September 30, 2024 compared to the same period in 2023 primarily due to a $33.1 million, or 2.5%, increase in comparable cemetery revenue and a $10.7 million increase in revenue contributed by newly constructed and acquired properties.

The $33.1 million, or 2.5%, increase in comparable cemetery revenue was primarily attributable to a $21.3 million increase in comparable cemetery core revenue. This increase was primarily a result of a $25.8 million increase in total recognized preneed revenue, which benefited from growth in comparable preneed sales production of $10.4 million, or 0.8%, and trust fund income.

Cemetery Gross Profit

Consolidated cemetery gross profit increased $15.1 million for the nine months ended September 30, 2024 compared to the same period in 2023, which is primarily attributable to a $8.4 million increase in comparable cemetery gross profit and a $7.0 million increase in gross profit contributed by newly constructed and acquired properties. Comparable cemetery gross profit increased from $430.2 million to $438.6 million, while the gross profit percentage decreased slightly from 32.8% to 32.6%. Although we experienced revenue growth, we continue to see increases in our fixed costs, primarily due to higher maintenance and the timing of incentive compensation costs compared to the prior year.

Other Financial Statement Items

Corporate General and Administrative Expenses

Corporate general and administrative expenses were $124.1 million for the nine months ended September 30, 2024 compared to $112.3 million for the same period in 2023. The current year and prior year were inversely impacted by long-term incentive compensation plan expenses that are tied to the changes in our stock price.

Gains on Divestitures and Impairment Charges, Net

We recognized a $4.8 million net pre-tax gain on asset divestitures and impairments in the nine months ended September 30, 2024 compared to a $10.2 million net pre-tax gain in 2023 on asset divestitures due to non-strategic asset divestitures.

Interest Expense

Interest expense increased $19.6 million to $194.5 million for the nine months ended September 30, 2024 primarily due to higher interest rates and higher average balances on our floating rate debt.

Other Income, Net

Other income, net increased $4.4 million to $7.0 million for the nine months ended September 30, 2024 primarily due to higher investment income from higher investment balances and new investment products compared to the prior year.

FORM 10-Q 41

---

PART I

Provision for Income Taxes

Our effective tax rate was 23.1% and 24.5% for the nine months ended September 30, 2024 and 2023, respectively. The lower effective tax rate for the nine months ended September 30, 2024 was primarily due to more excess tax benefits recognized on the settlement of employee share-based awards. The effective tax rate for the nine months ended September 30, 2024 was higher than the federal statutory tax rate of 21.0% primarily due to state tax expense, partially offset by excess tax benefits recognized on the settlement of employee share-based awards.

Weighted Average Shares

The diluted weighted average number of shares outstanding was 147.0 million for the nine months ended September 30, 2024 compared to 153.6 million for the same period in 2023. The decrease primarily reflects the impact of shares repurchased under our share repurchase program.

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, 2023 and are disclosed in our Annual Report on Form 10-K for the year ended December 31, 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.

•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.

FORM 10-Q 42

---

PART I

•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.

•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.

•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 2023 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.

FORM 10-Q 43

---

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 September 30, 2024 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.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

As of September 30, 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 September 30, 2024 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 September 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

44 Service Corporation International

---

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, 2023.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table summarizes our share repurchases during the three months ended September 30, 2024:

Period						Total 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
July 1, 2024 — July 31, 2024						133,896						$	71.99					133,896						$	342,429,864
August 1, 2024 — August 31, 2024						89,573						$	74.88					89,573						$	335,723,066
September 1, 2024 — September 30, 2024						60,105						$	78.99					60,105						$	330,975,140
						283,574												283,574

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

(a) Not applicable.

(b) Not applicable.

(c) During the three months ended September 30, 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.

FORM 10-Q 45

---

PART II

Item 6. Exhibits

Exhibit Number									Description
3.1						—			Restated Articles of Incorporation (Incorporated by reference to Exhibit 3.1 to Registration Statement No. 333-10867 on Form S-3).
3.2						—			Articles of Amendment to Restated Articles of Incorporation (Incorporated by reference to Exhibit 3.1 to Form 10-Q for the fiscal quarter ended September 30, 1996).
3.3						—			Certificate of Amendment to Restated Articles of Incorporation (Incorporated by reference to Exhibit 3.1 to Form 8-K filed May 25, 2018).
3.4						—			Statement of Resolution Establishing Series of Shares of Series D Junior Participating Preferred Stock, dated July 27, 1998 (Incorporated by reference to Exhibit 3.2 to Form 10-Q for the fiscal quarter ended June 30, 1998).
3.5						—			Bylaws of the Company (Incorporated by reference to Exhibit 3.1 to Form 8-K filed May 5, 2023).
4.1						—			Senior Indenture dated as of February 1, 1993 by and between the Company and The Bank of New York, as trustee (Incorporated by reference as Exhibit 4.1 to Form S-4 filed September 2, 2004 (File No. 333-118763)).
4.2						—			Agreement of Resignation, Appointment of Acceptance, dated December 12, 2005, among the Company, The Bank of New York and The Bank of New York Trust Company, N.A., appointing a successor trustee for the Senior Indenture dated as of February 1, 1993 (Incorporated by reference to Exhibit 4.1 to Form 10-Q for the fiscal quarter ended June 30, 2005).
10.34						—			Credit Agreement, dated January 11, 2023, between Service Corporation International, JPMorgan Chase Bank, N.A., as administrative agent, and certain other financial institutions, as lenders thereto (Incorporated by reference to Exhibit 10.1 to Form 8-K filed January 12, 2023).
31.1						—			Certification of Thomas L. Ryan as Principal Executive Officer in satisfaction of Section 302 of the Sarbanes-Oxley Act of 2002.
31.2						—			Certification of Eric D. Tanzberger as Principal Financial Officer in satisfaction of Section 302 of the Sarbanes-Oxley Act of 2002.
32.1						—			Certification of Periodic Financial Reports by Thomas L. Ryan as Principal Executive Officer in satisfaction of Section 906 of the Sarbanes- Oxley Act of 2002.
32.2						—			Certification of Periodic Financial Reports by Eric D. Tanzberger as Principal Financial Officer in satisfaction of Section 906 of the Sarbanes-Oxley Act of 2002.
101						—			Interactive data file formatted Inline XBRL.
104						—			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

46 Service Corporation International

---

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.

October 31, 2024			SERVICE CORPORATION INTERNATIONAL
			By:			/s/ TAMMY MOORE
						Tammy Moore Vice President and Chief Accounting Officer (Principal Accounting Officer)

FORM 10-Q 47