Acquisitions

6 Months Ended

Jun. 30, 2011

Acquisitions [Abstract]

ACQUISITIONS

3. ACQUISITIONS

     Our growth strategy includes the execution of our Strategic Acquisition Model. The goal of that model is to build concentrated groups of businesses in ten to fifteen strategic markets. We assess acquisition candidates using six strategic ranking criteria and to differentiate the price we are willing to pay. Those criteria are:

• Size of business

• Size of market

• Competitive standing

• Demographics

• Strength of brand

• Barriers to entry

     During the second quarter of 2011, the Company completed two acquisitions. The consideration paid for those businesses was $5.1 million in cash. The Company acquired substantially all the assets and assumed certain operating liabilities, including obligations associated with existing preneed contracts. The assets and liabilities were recorded at fair value and included goodwill. The results of the acquired business are included in the Company’s results from the date of acquisition. Selected information on the acquisitions follows (in millions):

			Assets
			Acquired		Liabilities
			(Excluding	Goodwill	and Debt
Acquisition Date	Type of Business	Market	Goodwill)	Recorded	Assumed
April 2011	Three Funeral Homes	Amarillo, TX	$0.9	$2.4	—
April 2011	Funeral Home	Miami, FL	$0.6	$1.2	—

     The effect of the acquisitions on the Consolidated Balance Sheets at June 30, 2011 was as follows (in thousands):

Current assets	$	44
Property, plant & equipment		1,058
Tradenames		400
Goodwill		3,598
Receivables from preneed funeral contracts		388
Deferred preneed funeral revenue		(388	)
	$	5,100