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Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2018
Summary of Significant Accounting Policies [Abstract]  
Fair Value of Financial Instruments, Policy
The fair value of our long-term, fixed-rate loans were estimated using market prices for those loans, and therefore are classified within Level 2 of the fair value measurements hierarchy. The Term Loan, Bank Credit Facility agreement, and the mortgage notes and other debt are classified within Level 3 of the fair value measurements hierarchy. The fair value of these instruments was estimated using a discounted cash flow analysis based on our incremental borrowing rate for similar borrowing arrangements.
Consolidation, Policy
Principles of Consolidation and Basis of Presentation
Our unaudited condensed consolidated financial statements include the accounts of Service Corporation International (SCI) and all subsidiaries in which we hold a controlling financial interest. Our financial statements also include the accounts of the merchandise and service trusts and cemetery perpetual care trusts in which we have a variable interest and are the primary beneficiary. 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, 2017, 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.
Use of Estimates, Policy
Use of Estimates in the Preparation of Financial Statements
The preparation of the unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions as described in our Annual Report on Form 10-K for the year ended December 31, 2017. These estimates and assumptions may affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. As a result, actual results could differ from these estimates.
New Accounting Pronouncements, Policy [Policy Text Block]
Accounting Standards Adopted in 2018
Revenue Recognition
In May 2014, the FASB issued "Revenue from Contracts with Customers", which replaced existing revenue recognition guidance. During 2016, the FASB made several amendments to the new standard that clarified guidance on several matters, including principal vs. agent considerations, identifying performance obligations, sales taxes, and licensing.
The new standard, as amended, requires that we recognize revenue in the amount to which we expect to be entitled for delivery of promised goods and services to our customers. The new standard also resulted in enhanced revenue-related disclosures, including any significant judgments and changes in judgments. Additionally, the new standard requires the deferral of incremental direct selling costs to the period in which the related revenue is recognized.
The standard primarily impacts the manner in which we recognize a) certain nonrefundable up-front fees and b) incremental costs to acquire new preneed funeral trust contracts and preneed and atneed cemetery contracts (i.e., selling costs). The nonrefundable fees will be deferred and recognized as revenue when the underlying goods and services are delivered to the customer. The incremental direct selling costs will be deferred and recognized by specific identification to the delivery of the underlying goods and services.
We adopted the standard as of January 1, 2018 using the modified retrospective approach applied to all contracts that were not completed at adoption based on the contract terms in existence at adoption. As a result of the adoption, we recorded a $172.2 million increase to Retained earnings, which comprises a $268.0 million increase to Deferred charges and other assets partially offset by a $38.0 million increase to Deferred revenue, net and a $57.8 million increase to Deferred tax liability.We made the enhanced revenue-related disclosures in Footnotes 2, 3, and 8 of this Form 10-Q.
Additionally, the amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts are required to be presented with Deferred revenue, net, instead of as Preneed receivables, net and trust investments on our unaudited Condensed Consolidated Balance Sheet. Accordingly, we reclassified $551.1 million of these amounts from Preneed receivables, net and trust investments to Deferred revenue, net. As a result of this reclassification, we eliminated our previous cancellation reserve on these performance obligations.
We will continue to expense costs to acquire new preneed funeral insurance contracts in the period incurred. The insurance contracts are not, and will not be, reflected in our unaudited Condensed Consolidated Balance Sheet because they do not represent assets or liabilities, as we have no claim to the insurance proceeds until the contract is fulfilled and no obligation under the contract until the benefits are assigned to us at the time of need.
The impact of adopting the new guidance on our unaudited Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2018 are as follows:
 
Three Months Ended June 30, 2018
 
Six Months Ended June 30, 2018
 
As Reported
 
Effect of New Guidance
 
Without New Guidance
 
As Reported
 
Effect of New Guidance
 
Without New Guidance
 
(in thousands, except per share amounts)
Revenue
$
796,092

 
$
461

 
$
796,553

 
$
1,590,574

 
$
1,018

 
$
1,591,592

Costs and expenses
(607,965
)
 
(6,685
)
 
(614,650
)
 
(1,206,685
)
 
(13,952
)
 
(1,220,637
)
Operating profit (loss)
188,127

 
(6,224
)
 
181,903

 
383,889

 
(12,934
)
 
370,955

General and administrative expenses
(31,136
)
 
 
 
(31,136
)
 
(65,920
)
 
—

 
(65,920
)
Gain on divestitures and impairment charges, net
6,865

 
—

 
6,865

 
7,347

 
—

 
7,347

Hurricane recoveries, net
(1,902
)
 
—

 
(1,902
)
 
330

 
—

 
330

Operating income (loss)
161,954

 
(6,224
)
 
155,730

 
325,646

 
(12,934
)
 
312,712

Interest expense
(44,519
)
 
 
 
(44,519
)
 
(88,095
)
 
—

 
(88,095
)
Gain (loss) on early extinguishment of debt, net
—

 
—

 
—

 
(10,131
)
 
—

 
(10,131
)
Other income, net
1,880

 
—

 
1,880

 
2,264

 
—

 
2,264

Income (loss) before income taxes
119,315

 
(6,224
)
 
113,091

 
229,684

 
(12,934
)
 
216,750

(Provision for) benefit from income taxes
(16,034
)
 
772

 
(15,262
)
 
(44,355
)
 
2,496

 
(41,859
)
Net income (loss)
103,281

 
(5,452
)
 
97,829

 
185,329

 
(10,438
)
 
174,891

Net income attributable to noncontrolling interests
(42
)
 
—

 
(42
)
 
(102
)
 
—

 
(102
)
Net income (loss) attributable to common stockholders
$
103,239

 
$
(5,452
)
 
$
97,787

 
$
185,227

 
$
(10,438
)
 
$
174,789

Earnings per share (1)
 
 
 
 
 
 
 
 
 
 
 
Basic
$
0.57

 
$
(0.03
)
 
$
0.54

 
$
1.01

 
$
(0.06
)
 
$
0.95

Diluted
$
0.55

 
$
(0.03
)
 
$
0.52

 
$
0.98

 
$
(0.06
)
 
$
0.93


(1)
Net income per share is computed independently for each of the columns presented. Therefore, the sum of the first two columns' earnings per share may not equal the Without New Guidance column.
Cash Flow
In August and November 2016, the FASB amended "Statement of Cash Flows" to clarify guidance on the classification of certain cash receipts and cash payments. Additionally, the guidance requires that the statement of cash flows reflects changes in restricted cash in addition to cash and cash equivalents. Amended guidance includes clarification on debt prepayments and extinguishment costs, contingent consideration in business combinations, proceeds from insurance claims, and premium payments on Company-owned life insurance. We adopted the new guidance retrospectively on January 1, 2018. As a result, we have recast our unaudited Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2017 as follows:
 
As Previously Reported
 
Effect of New Guidance
 
As Recast
 
(in thousands)
Net cash provided by (used in) operating activities
$
224,223

 
$
(1,734
)
 
$
222,489

Cash flows from investing activities:
 
 
 
 
 
Capital expenditures
(85,324
)
 
—

 
(85,324
)
Acquisitions, net of cash acquired
(24,044
)
 
(22,329
)
 
(46,373
)
Proceeds from divestitures and sales of property and equipment
7,431

 
17,898

 
25,329

Payments for Company-owned life insurance policies
—

 
(3,180
)
 
(3,180
)
Proceeds from Company-owned life insurance policies
—

 
2,591

 
2,591

Other
175

 
—

 
175

Net cash used in investing activities
(101,762
)
 
(5,020
)
 
(106,782
)
Net cash used in financing activities
(96,626
)
 
—

 
(96,626
)
Effect of foreign currency on cash, cash equivalents, and restricted cash
4,068

 
4

 
4,072

Net increase in cash, cash equivalents, and restricted cash
29,903

 
(6,750
)
 
23,153

Cash, cash equivalents, and restricted cash at beginning of period
194,986

 
16,520

 
211,506

Cash, cash equivalents, and restricted cash at end of period
$
224,889

 
$
9,770

 
234,659



Retirement Plans
In March 2017, the FASB amended "Retirement Plans" to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost by requiring the classification of interest costs and actuarial gains and losses separately from operating income on the unaudited Condensed Consolidated Statement of Operations. We adopted the new guidance on January 1, 2018 and applied the practical expedient of reclassifying the amounts disclosed as "total net periodic benefit cost" in Note 11 to our December 31, 2017 Form 10-K from Operating income to Other income (expense), net. For the second quarter of 2017, we reclassified $73 thousand and $221 thousand from Costs and expenses and General and administrative expenses, respectively, to Other income (expense), net. For the first six months of 2017 we reclassified $147 thousand and $442 thousand from Costs and expenses and General and administrative expenses, respectively, to Other income (expense), net.
Financial Instruments
In January 2016 and February 2018, the FASB amended "Financial Instruments" to provide additional guidance on the recognition and measurement of financial assets and liabilities. The amendment requires investments in equity instruments to be measured at fair value with changes in fair value reflected in net income. For us, these changes in fair value will be offset by a corresponding change in the fair value of Deferred receipts held in trust or Care trusts' corpus. The amendment also changes the required disclosures associated with equity instruments as a result of the change in presentation. The new guidance was effective for us on January 1, 2018 and our adoption did not materially impact our consolidated results of operations, consolidated financial position, or cash flows as of and for the three and six months ended June 30, 2018. We made the appropriate disclosure changes in Footnote 3 of this Form 10-Q.
Stock Compensation
In May 2017, the FASB amended "Stock Compensation" to clarify which changes in terms and conditions of share-based awards require accounting for as modifications. Under the new guidance, modification accounting is required only if the fair value, vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. We adopted the new guidance on January 1, 2018, which did not have an impact on our consolidated results of operations, consolidated financial position, and cash flows.
Recently Issued Accounting Standards
Financial Instruments
In June 2016, the FASB amended "Financial Instruments" to provide financial statement users with more decision-useful information about the expected credit losses on debt instruments and other commitments to extend credit held by a reporting entity at each reporting date. This amendment replaces the incurred loss impairment methodology in the current standard with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to support credit loss estimates. The new guidance is effective for us on January 1, 2020, and we are still evaluating the impact of adoption on our consolidated results of operations, consolidated financial position, and cash flows.
Leases
In February 2016, January 2018, and July 2018, the FASB amended "Leases" to increase transparency and comparability among organizations. Under the new standard, an entity will be required to recognize lease assets and liabilities on its balance sheet and disclose key information about leasing arrangements. In addition, the new standard offers specific accounting guidance for a lessee, a lessor, and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. This new standard will be effective for us on January 1, 2019. We are in the process of reviewing our existing leases, have selected a software solution, and are assessing process changes as a result of the new guidance. We are still evaluating the impact of adoption on our consolidated results of operations, consolidated financial position, and cash flows.
Goodwill
In January 2017, the FASB amended "Goodwill" to simplify the subsequent measurement of goodwill. The amended guidance eliminates Step 2 from the goodwill impairment test. Instead, impairment is defined as the amount by which the carrying value of the reporting unit exceeds its fair value, up to the total amount of goodwill. The new guidance is effective for us on January 1, 2020, and is not expected to have an impact on our consolidated results of operations, consolidated financial position, and cash flows.