XML 36 R24.htm IDEA: XBRL DOCUMENT v3.23.3
Summary of Significant Accounting Policies Level 2 (Policies)
 9 Months Ended
Sep. 30, 2023
Consolidation, Policy [Policy Text Block]
Principles of Consolidation and Basis of Presentation
Our unaudited condensed consolidated financial statements include the accounts of Service Corporation International and all subsidiaries in which we hold a controlling financial interest. Intercompany balances and transactions have been eliminated in consolidation.
Our unaudited condensed consolidated financial statements also include the accounts of the merchandise and service trusts and cemetery perpetual care trusts in which we have a variable interest and are the primary beneficiary. We have retained the specialized industry accounting principles when consolidating the trusts. Although we consolidate the trusts, it does not change the legal relationships among the trusts, us, or our customers. The customers are the legal beneficiaries of these trusts; therefore, their interests in these trusts represent a liability to us.
Our interim condensed consolidated financial statements are unaudited but include all adjustments, consisting of normal recurring accruals and any other adjustments, which management considers necessary for a fair statement of our results for these periods. Our unaudited condensed consolidated financial statements have been prepared in a manner consistent with the accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2022, 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 [Policy Text Block]
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 and Cash Equivalents, Policy [Policy Text Block]
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.
Accounts Receivable [Policy Text Block]
Receivables, net
The components of Receivables, net in our unaudited Condensed Consolidated Balance Sheet were as follows:
September 30, 2023
Atneed FuneralAtneed CemeteryMiscellaneousCurrent Portion of NotesTotal
 (In thousands)
Receivables$25,559 $20,452 $42,062 $269 $88,342 
Reserve for credit losses(1,703)(2,016)(367)(138)(4,224)
Receivables, net$23,856 $18,436 $41,695 $131 $84,118 
December 31, 2022
Atneed FuneralAtneed CemeteryMiscellaneousCurrent Portion of NotesTotal
 (In thousands)
Receivables$44,417 $19,781 $38,483 $186 $102,867 
Reserve for credit losses(3,627)(2,076)(344)(139)(6,186)
Receivables, net$40,790 $17,705 $38,139 $47 $96,681 

Additionally, included in Deferred charges and other assets, net were long-term miscellaneous receivables, net and notes receivable, net as follows:
September 30, 2023December 31, 2022
 (In thousands)
Notes receivable$10,131 $9,367 
Reserve for credit losses(1,797)(2,546)
Notes receivable, net$8,334 $6,821 
Long-term miscellaneous receivables$7,869 $7,993 
Reserve for credit losses(723)(1,056)
Long-term miscellaneous receivables, net$7,146 $6,937 
The following table summarizes the activity in our reserve for credit losses by portfolio segment, excluding preneed receivables which are presented in Note 3, for the nine months ended September 30, 2023:
December 31, 2022(Provision) Benefit for Expected Credit LossesWrite OffsRecoveriesEffect of Foreign Currency and OtherSeptember 30, 2023
 (In thousands)
Trade receivables:
Funeral$(3,627)$(1,532)$4,802 $(1,403)$57 $(1,703)
Cemetery(2,076)(670)1,000 (265)(5)(2,016)
Total reserve for credit losses on trade receivables$(5,703)$(2,202)$5,802 $(1,668)$52 $(3,719)
Miscellaneous receivables:
Current$(344)$(23)$— $— $— $(367)
Long-term(1,056)333 — — — (723)
Total reserve for credit losses on miscellaneous receivables$(1,400)$310 $— $— $— $(1,090)
Notes receivable$(2,685)$2 $748 $— $— $(1,935)

At September 30, 2023, the amortized cost basis of our miscellaneous and notes receivables by year of origination was as follows:
20232022202120202019PriorRevolving Line of CreditTotal
 (In thousands)
Miscellaneous receivables:
Current$39,469 $1,746 $485 $242 $116 $4 $— $42,062 
Long-term2,768 2,532 1,593 462 497 17 — 7,869 
Total miscellaneous receivables$42,237 $4,278 $2,078 $704 $613 $21 $— $49,931 
Notes receivable$— $— $— $11 $— $4,730 $5,659 $10,400 
At September 30, 2023, the payment status of our miscellaneous and notes receivables was as follows:
Past Due
<30 Days30-90 Days90-180 Days>180 DaysTotalCurrentTotal
 (In thousands)
Miscellaneous receivables:
Current$— $— $302 $1,185 $1,487 $40,575 $42,062 
Long-term— — — — — 7,869 7,869 
Total miscellaneous receivables$— $— $302 $1,185 $1,487 $48,444 $49,931 
Notes receivable$— $116 $— $1,116 $1,232 $9,168 $10,400 
Fair Value of Financial Instruments, Policy [Policy Text Block] 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.
New Accounting Pronouncements, Policy [Policy Text Block]
Recently Issued Accounting Standards
Investments
In March 2023, the FASB amended guidance for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits. The amended guidance expands the option to use the proportional amortization method from investments in low-income-housing tax credit structures to all tax credit structures that meet certain requirements. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received. The investment amortization and the income tax credits are presented net in the statement of operations as a component of income tax expense. The new guidance is effective as of January 1, 2024 with early adoption permitted. We are still evaluating the impact of the guidance on our consolidated results of operations, consolidated financial position, and cash flows.
Leases
In March 2023, the FASB amended guidance on determining the useful life of leasehold improvements associated with a lease between related parties under common control. The amended guidance requires that the leasehold improvements be amortized over the useful life of the improvements to the common control group as a whole. The new guidance is effective for us on January 1, 2024 and is not expected to have any impact on our consolidated results of operations, consolidated financial position, and cash flows.
Fair Value Measurements
In June 2022, the FASB amended guidance to clarify that the fair value of investments in equity instruments with contractual sale restrictions should not be discounted as a result of the contractual restrictions. Additionally, the new guidance mandated disclosure of the fair value of any such securities, a description of the nature and duration of the restrictions, and circumstances that could cause a lapse in the restrictions. The new guidance is effective for us beginning with valuations that occur after January 1, 2024 and is not expected to have any impact on our consolidated results of operations, consolidated financial position, and cash flows.