Leases (Notes)

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Lessee, Finance Leases [Text Block]

Leases

Our leases principally relate to office, maintenance, and transportation equipment and funeral service real estate. The majority of our lease arrangements contain options to (i) purchase the property at fair value on the exercise date, (ii) purchase the property for a value determined at the inception of the lease, or (iii) renew the lease for the fair rental value at the end of the primary lease term. 

Future lease payments for non-cancelable operating and finance leases as of December 31, 2024 were as follows:

	Operating		Finance		Total
	(In thousands)
2025	$	10,099	$	41,774	$	51,873
2026	9,345		34,555		43,900
2027	8,170		26,376		34,546
2028	6,742		18,504		25,246
2029	5,569		11,451		17,020
2030 and thereafter	29,067		43,886		72,953
Total lease payments	$	68,992	$	176,546	$	245,538
Less: Interest	(15,862)		(31,485)		(47,347)
Present value of lease liabilities	$	53,130	$	145,061	$	198,191

The components of lease cost were as follows:

	Years Ended December 31,
	2024		2023		2022
	(In thousands)
Amortization of leased assets	$	37,421	$	34,212	$	35,321
Interest on lease liabilities	7,266		4,795		3,990
Total finance lease cost	44,687		39,007		39,311
Operating lease cost	11,245		10,531		11,021
Variable lease cost	637		872		437
Total lease cost	$	56,569	$	50,410	$	50,769

Supplemental balance sheet information related to leases was as follows:

Lease Type	Balance Sheet Classification	December 31, 2024		December 31, 2023
		(In thousands)
Operating lease right-of-use assets (1)	Deferred charges and other assets	$	50,113	$	50,973
Finance lease right-of-use assets (1)	Property and equipment, net	140,094		127,425
Total right-of-use assets (1)		$	190,207	$	178,398
Operating	Accounts payable and accrued liabilities	$	7,861	$	7,782
Finance	Current maturities of long-term debt	34,816		44,109
Total current lease liabilities		$	42,677	$	51,891
Operating	Other liabilities	45,269		46,050
Finance	Long-term debt	110,245		87,930
Total non-current lease liabilities		155,514		133,980
Total lease liabilities		$	198,191	$	185,871

(1)    Right-of-use assets are presented net of accumulated amortization.

The weighted-average life remaining and discount rates of our leases were as follows:

	December 31, 2024		December 31, 2023
	Operating	Finance	Operating	Finance
Weighted-average remaining lease term (years)	10.6	6.1	11.1	5.2
Weighted-average discount rate	4.6%	5.3%	4.4%	4.6%

Supplemental cash flow information related to leases was as follows:

	Years Ended December 31,
	2024		2023		2022
	(In thousands)
Cash paid for amounts in the measurement of lease liabilities:
Operating cash flows for operating leases	$	11,181	$	10,473	$	10,994
Operating cash flows for finance leases	7,371		5,191		3,838
Financing cash flows for finance leases	36,840		34,482		35,542
Total cash paid for amounts included in the measurement of lease liabilities	$	55,392	$	50,146	$	50,374
New finance leases	54,118		57,962		21,148
Finance lease renewals and extensions	443		829		(264)
Right-of-use assets obtained in exchange for finance lease liabilities	$	54,561	$	58,791	$	20,884
New operating leases	5,067		6,534		2,704
Operating lease renewals and extensions	4,081		2,985		2,324
Right-of-use assets obtained in exchange for operating lease liabilities	$	9,148	$	9,519	$	5,028

We have 81 operating leases where we are the lessor and the non-cancelable term is greater than one year, resulting in $3.9 million and $4.0 million in lease income for the years ended December 31, 2024 and 2023, respectively. We determine whether an arrangement is or contains a lease at the inception of the arrangement based on the terms of the arrangement. We lease retail space, office space, and land, and we are party to cellular agreements and land easements. The underlying assets of these lease agreements are buildings and land. We generally do not have sales-type leases, direct financing leases, or lease receivables. Certain of our agreements include variable rental income based on a percentage of sales over base contractual levels. Renewal options that can be cancelled by the lessees are not included in our disclosure of future lease income, which includes only the non-cancelable terms and fixed escalation provisions. Certain lease arrangements contain options to purchase the property at fair value at the conclusion of the lease term. Non-lease components are excluded from rental income disclosures.

Future undiscounted lease income from operating leases where we are the lessor were as follows as of December 31, 2024 (in thousands):

2025	$	3,329
2026	2,604
2027	2,068
2028	1,685
2029	1,093
2030 and thereafter	9,727
Total expected cash receipts	$	20,506

We own certain land, buildings, and improvements for the sole purpose of generating lease income. Property is recorded at cost, and depreciation is recognized ratably over the estimated useful lives of the various classes of assets. Buildings and improvements are depreciated over a period ranging from ten years to forty years. For these properties, we recorded depreciation expense of $0.4 million for the years ended December 31, 2024 and 2023, and $0.7 million for the year ended December 31, 2022. As of December 31, 2024, our Consolidated Balance Sheet includes land of $31.9 million, and buildings and improvements of $9.7 million, net of $2.4 million accumulated depreciation, related to these properties.