Acquisitions

9 Months Ended

Sep. 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 third quarter of 2011, the Company completed two acquisitions. The consideration paid for those businesses was $5.2 million in cash. The Company acquired substantially all the assets and assumed certain operating liabilities, including obligations associated with existing preneed contracts of a funeral business in Oklahoma. The second acquisition was a funeral business in California in which the Company is leasing the funeral home facilities for approximately $142,000 annually. The assets and liabilities were recorded at fair value and included goodwill. The results of the acquired businesses 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
August 2011	Funeral Home	Duncan, OK	$	1.6	$	2.4		—
September 2011	3 Funeral Homes	Modesto, CA	$	0.1	$	1.1		—

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

Current assets		55
Property, plant & equipment		1,638
Goodwill		3,514
Preneed funeral trust investment		104
Deferred preneed receipts held in trust		(104	)
Accrued liabilities		(7	)
Total consideration	$	5,200