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Acquisition Level 1 (Notes)
 12 Months Ended
Dec. 31, 2024
Business Combinations [Abstract]  
Business Combination Disclosure [Text Block]
Acquisitions
We spent $182.9 million and $72.5 million for several business acquisitions during the twelve months ended December 31, 2024 and 2023, respectively. This includes $1.7 million of cash acquired in 2024. In addition, we spent $62.1 million and $56.4 million for several real estate acquisitions during the twelve months ended December 31, 2024 and 2023, respectively.
In 2024, we acquired 26 funeral homes and 6 cemeteries. This includes two separate acquisitions in major metropolitan markets for $120.6 million in cash in the third quarter.
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 acquisitions of the preneed backlog of deferred revenues enhance our long-term stability.
The following table summarizes the fair values of the assets acquired and liabilities assumed in the two separate acquisitions in the third quarter (in thousands):
Other current assets$2,201 
Cemetery property1,972 
Property and equipment, net51,259 
Preneed receivables, net and trust investments50,194 
Indefinite-lived intangible assets24,316 
Deferred charges and other assets340 
Cemetery perpetual care trust investments9,223 
Goodwill72,290 
Total assets acquired211,795 
Current liabilities2,107 
Deferred revenue and deferred receipts held in trust60,855 
Long-term debt15,431 
Deferred tax liability3,003 
Care trusts' corpus9,223 
Other liabilities529 
Total liabilities assumed91,148 
Net assets acquired$120,647 
The purchase accounting is preliminary as we have not finalized our assessment of the fair value because there has been insufficient time between the acquisition date and the issuance of these financial statements to complete our review and final determination of fair value.
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 $72.3 million in recognized goodwill, $59.7 million is deductible for tax purposes. Of this total, $26.1 million was allocated to our cemetery segment, while $46.2 million was allocated to our funeral segment. The identified intangible assets are comprised of tradenames.
We incurred acquisition costs of $0.7 million, which is included in General and administrative expenses in our Consolidated Statement of Operations. These businesses contributed revenue of $7.7 million and net income of $0.8 million from acquisition through December 31, 2024.
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 acquisitions of the preneed backlog of deferred revenues enhance our long-term stability.
The following table summarizes the fair values of the assets acquired and liabilities assumed (in thousands):
Other current assets$241 
Cemetery property9,815 
Property and equipment, net19,109 
Preneed receivables, net and trust investments6,539 
Indefinite-lived intangible assets14,257 
Deferred charges and other assets158 
Cemetery perpetual care trust investments6,461 
Goodwill36,234 
Total assets acquired92,814 
Current liabilities439 
Deferred revenue and deferred receipts held in trust12,599 
Care trusts' corpus6,461 
Other liabilities2,095 
Total liabilities assumed21,594 
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.
Divestiture-Related Activities
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 (Losses) gains on divestitures and impairment charges, net, which consist of the following:
Years Ended December 31,
202420232022
 (In thousands)
Gains on divestitures, net$11,337 $12,543 $10,923 
Impairment losses(23,825)(2,727)(961)
(Losses) gains on divestitures and impairment charges, net $(12,488)$9,816 $9,962