In 2023, we acquired 17 funeral homes and 2 cemeteries for $72.5 million in cash and $56.4 million for real estate transactions. This amount includes the use of $24.0 million in IRS Section 1031 exchange funds. This compares to $102.6 million and $121.4 million, net of cash acquired, for several business acquisitions, and $17.1 million and $26.6 million, net of cash acquired, for several real estate acquisitions for years ended December 31, 2022 and 2021, respectively.

The 2022 acquisitions include ten funeral homes and three cemeteries in California as part of two acquisitions (the "2022 California Businesses") for $71.2 million in cash. This amount includes the use of $13.2 million in IRS Section 1031 exchange funds.

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

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

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




Other current assets	$	241
Cemetery property	9,815
Property and equipment, net	19,109
Preneed receivables, net and trust investments	6,539

Indefinite-lived intangible assets	14,257
Deferred charges and other assets	158
Cemetery perpetual care trust investments	6,461
Goodwill	36,234
Total assets acquired	92,814

Current liabilities	439
Deferred revenue and deferred receipts held in trust	12,599
Care trusts' corpus	6,461
Other liabilities	2,095
Total liabilities assumed	21,594

Net assets acquired	$	71,220

Goodwill, land, and certain identifiable intangible assets recorded in the acquisitions are not subject to amortization; however, the goodwill and intangible assets will be tested periodically for impairment. Of the $36.2 million in goodwill recognized, all of which is deductible for tax purposes, $17.3 million was allocated to our cemetery segment and $18.9 million was allocated to our funeral segment. The identified intangible assets are indefinite lived tradenames with a fair value of $14.3 million.

We incurred acquisition costs of $0.2 million, which is included in General and administrative expenses in our Consolidated Statement of Operations for the year ended December 31, 2022. The 2022 California Businesses contributed revenue of $1.9 million and net income of $0.5 million from acquisition through December 31, 2022.

The 2021 acquisitions include twenty-one funeral homes and one cemetery in two states as part of two acquisitions (the "Ohio and California Businesses") for $94.8 million in cash. This amount includes the use of $6.1 million in IRS Section 1031 exchange funds.

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

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

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




Other current assets	$	140
Cemetery property	2,918
Property and equipment, net	36,768
Preneed receivables, net and trust investments	7,732
Finite-lived intangible assets	3,900
Indefinite-lived intangible assets	24,734
Deferred charges and other assets	128
Cemetery perpetual care trust investments	1,484
Goodwill	29,683
Total assets acquired	107,487

Current liabilities	660
Deferred revenue and deferred receipts held in trust	7,204
Care trusts' corpus	1,484
Other liabilities	3,336
Total liabilities assumed	12,684

Net assets acquired	$	94,803

Goodwill, land, and certain identifiable intangible assets recorded in the acquisitions are not subject to amortization; however, the goodwill and intangible assets will be tested periodically for impairment. Of the $29.7 million in goodwill recognized, all of which is deductible for tax purposes, $1.5 million was allocated to our cemetery segment and $28.2 million was allocated to our funeral segment. The identified intangible assets comprise the following:


	Useful Life	Fair Value
	(Years)	(In thousands)
Preneed customer relationships to insurance claims	10	$	3,900
Tradenames	Indefinite	24,734
Total intangible assets		$	28,634

We incurred acquisition costs of $0.3 million, which is included in Corporate general and administrative expenses in our Consolidated Statement of Operations for the year ended December 31, 2021. The Ohio and California Businesses contributed revenue of $1.1 million and net income of $0.3 million from acquisition through December 31, 2021.

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


	Years Ended December 31,
	2023		2022		2021
	(In thousands)
Gains on divestitures, net	$	12,543	$	10,923	$	28,573
Impairment losses	(2,727)		(961)		(3,404)
Gains on divestitures and impairment charges, net	$	9,816	$	9,962	$	25,169