Preneed Activities Level 1 (Notes)

9 Months Ended

Sep. 30, 2024

Preneed Activities

Preneed Receivables, Net and Trust Investments

The components of Preneed receivables, net and trust investments in our unaudited Condensed Consolidated Balance Sheet were as follows:



	September 30, 2025		December 31, 2024
	(In thousands)
Preneed receivables, net	$	1,541,176	$	1,570,773

Trust investments, at market	7,870,586		7,084,723

Insurance-backed fixed income securities and other	232,890		237,868
Trust investments	8,103,476		7,322,591
Less: Cemetery perpetual care trust investments	(2,374,391)		(2,154,032)
Preneed trust investments	5,729,085		5,168,559

Preneed receivables, net and trust investments	$	7,270,261	$	6,739,332

Preneed receivables, net comprised the following:


	September 30, 2025
	Funeral		Cemetery		Total
	(In thousands)
Preneed receivables	$	151,117	$	1,453,489	$	1,604,606
Unearned finance charges	(13,119)		(14,492)		(27,611)
Preneed receivables, at amortized cost	137,998		1,438,997		1,576,995
Reserve for credit losses	(20,472)		(15,347)		(35,819)
Preneed receivables, net	$	117,526	$	1,423,650	$	1,541,176

	December 31, 2024
	Funeral		Cemetery		Total
	(In thousands)
Preneed receivables	$	183,016	$	1,444,084	$	1,627,100
Unearned finance charges	(11,083)		(9,387)		(20,470)
Preneed receivables, at amortized cost	171,933		1,434,697		1,606,630
Reserve for credit losses	(20,132)		(15,725)		(35,857)
Preneed receivables, net	$	151,801	$	1,418,972	$	1,570,773

At September 30, 2025, the amortized cost basis of our preneed receivables by year of origination was as follows:



	2025		2024		2023		2022		2021		Prior		Total
	(In thousands)
Preneed receivables, at amortized cost:
Funeral	$	22,792	$	39,124	$	33,353	$	17,122	$	8,517	$	17,090	$	137,998
Cemetery	427,841		440,701		290,784		166,734		69,246		43,691		1,438,997
Total preneed receivables, at amortized cost	$	450,633	$	479,825	$	324,137	$	183,856	$	77,763	$	60,781	$	1,576,995

At September 30, 2025, the payment status of our preneed receivables was as follows:


	Past Due
	<30 Days		30-90 Days		90-180 Days		>180 Days		Total		Current		Total
	(In thousands)
Preneed receivables, at amortized cost:
Funeral	$	3,539	$	2,119	$	1,590	$	31,074	$	38,322	$	99,676	$	137,998
Cemetery	56,744		46,610		17,146		6,705		127,205		1,311,792		1,438,997
Total preneed receivables, at amortized cost	$	60,283	$	48,729	$	18,736	$	37,779	$	165,527	$	1,411,468	$	1,576,995

The following table summarizes the activity for the reserve for credit losses on preneed receivables for the nine months ended September 30, 2025:



	December 31, 2024		Provision for Expected Credit Losses		Write Offs		Effect of Foreign Currency and Other		September 30, 2025
	(In thousands)
Funeral	$	(20,132)	$	(3,298)	$	2,960	$	(2)	$	(20,472)
Cemetery	(15,725)		(8)		397		(11)		(15,347)
Total reserve for credit losses on preneed receivables	$	(35,857)	$	(3,306)	$	3,357	$	(13)	$	(35,819)

The table below sets forth certain investment-related activities associated with our trusts:


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
	(In thousands)
Deposits	$	172,169	$	164,064	$	488,925	$	479,924
Withdrawals	$	161,288	$	161,622	$	437,892	$	431,816
Purchases of securities	$	468,919	$	350,799	$	1,854,184	$	1,433,451
Sales of securities	$	401,392	$	384,336	$	1,728,555	$	1,443,426
Realized gains from sales of securities(1)	$	114,746	$	94,604	$	344,420	$	373,094
Realized losses from sales of securities(1)	$	(20,908)	$	(31,283)	$	(96,108)	$	(88,834)

(1)All realized gains and losses are recognized in Other income, net for our trust investments and are offset by a corresponding reclassification in Other income, net to Deferred receipts held in trust and Care trusts’ corpus.

The cost and market values associated with trust investments recorded at market value are detailed below. Cost reflects the investment of control holders in the trusts. Fair value represents the value of the underlying securities held by the trusts.


		September 30, 2025
	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Value
				(In thousands)
Fixed income securities:
U.S. Treasury	2	$	47,306	$	295	$	(536)	$	47,065
Canadian government	2	27,303		—		—		27,303
Corporate	2	10,441		390		(9)		10,822
Residential mortgage-backed	2	3,535		51		(32)		3,554
Asset-backed	2	280		—		(45)		235
Equity securities:
Preferred stock	2	14,986		2,680		(59)		17,607
Common stock:
United States	1	2,035,533		788,788		(93,676)		2,730,645
Canada	1	38,434		31,241		(484)		69,191
Other international	1	171,469		42,487		(4,609)		209,347
Mutual funds:
Equity	1	941,938		287,231		(701)		1,228,468
Fixed income	1	659,451		8,945		(27,245)		641,151

Trust investments, at fair value		3,950,676		1,162,108		(127,396)		4,985,388
Commingled funds
Fixed income		1,319,364		16,298		(48,069)		1,287,593
Equity		354,092		150,439		(557)		503,974
Money market funds		402,531		—		—		402,531
Alternative investments		481,364		219,117		(9,381)		691,100
Trust investments, at net asset value		2,557,351		385,854		(58,007)		2,885,198
Trust investments, at market		$	6,508,027	$	1,547,962	$	(185,403)	$	7,870,586


		December 31, 2024
	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Value
				(In thousands)
Fixed income securities:
U.S. Treasury	2	$	43,699	$	178	$	(849)	$	43,028
Canadian government	2	25,979		—		—		25,979
Corporate	2	10,087		326		(11)		10,402
Residential mortgage-backed	2	3,811		39		(49)		3,801
Asset-backed	2	290		—		(47)		243
Equity securities:
Preferred stock	2	8,059		930		(25)		8,964
Common stock:
United States	1	1,887,854		617,695		(68,404)		2,437,145
Canada	1	41,362		20,164		(1,160)		60,366
Other international	1	120,605		34,414		(10,382)		144,637
Mutual funds:
Equity	1	950,990		121,006		(13,892)		1,058,104
Fixed income	1	1,028,622		4,183		(46,391)		986,414

Trust investments, at fair value		4,121,358		798,935		(141,210)		4,779,083
Commingled funds
Fixed income		862,350		2,597		(60,646)		804,301
Equity		346,553		99,647		(316)		445,884
Money market funds		432,821		—		—		432,821
Alternative investments		438,449		193,638		(9,453)		622,634
Trust investments, at net asset value		2,080,173		295,882		(70,415)		2,305,640
Trust investments, at market		$	6,201,531	$	1,094,817	$	(211,625)	$	7,084,723

Our alternative investments include funds invested in limited partnerships with interests in private equity, private market real estate, energy and natural resources, infrastructure, transportation, and private debt including both distressed debt and mezzanine financing. These investments can never be redeemed by the funds. Instead, due to the nature of the investments in this category, distributions are received through the liquidation of the underlying assets of the funds. The funds' managers have not communicated the timing of any liquidations.

Maturity dates of our fixed income securities range from 2025 to 2044. Maturities of fixed income securities (excluding mutual and commingled funds) at September 30, 2025 are estimated as follows:


	Fair Value
	(In thousands)
Due in one year or less	$	48,766
Due in one to five years	35,077
Due in five to ten years	4,922
Thereafter	214
Total estimated maturities of fixed income securities	$	88,979

Recognized trust fund income (realized and unrealized) related to our preneed trust investments was $51.0 million and $45.7 million for the three months ended September 30, 2025 and 2024, respectively. Recognized trust fund income (realized and unrealized) related to our cemetery perpetual care trust investments was $27.7 million and $24.7 million for the three months ended September 30, 2025 and 2024, respectively.

Recognized trust fund income (realized and unrealized) related to our preneed trust investments was $146.9 million and $134.3 million for the nine months ended September 30, 2025 and 2024, respectively. Recognized trust fund income (realized and unrealized) related to our cemetery perpetual care trust investments was $80.8 million and $73.5 million for the nine months ended September 30, 2025 and 2024, respectively.

Deferred Revenue, Net

Deferred revenue, net represents future revenue, including distributed trust investment earnings associated with unperformed trust-funded preneed contracts that are not held in trust accounts. Future revenue and net trust investment earnings that are held in trust accounts are included in Deferred receipts held in trust.

The components of Deferred revenue, net in our unaudited Condensed Consolidated Balance Sheet were as follows:


	September 30, 2025		December 31, 2024
	(In thousands)
Deferred revenue	$	2,784,235	$	2,745,104
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts	(1,007,735)		(989,934)
Deferred revenue, net	$	1,776,500	$	1,755,170

The following table summarizes the activity for our contract liabilities, which are reflected in Deferred revenue, net and Deferred receipts held in trust:


	Nine months ended September 30,
	2025		2024
	(In thousands)
Beginning balance — Deferred revenue, net and Deferred receipts held in trust	$	6,917,695	$	6,374,393
Net preneed contract sales	988,477		1,061,518
Acquisitions of businesses, net	6,841		76,077
Net investment gains(1)	496,097		453,863
Recognized revenue from backlog(2)	(416,911)		(443,685)
Recognized revenue from current period sales	(483,301)		(469,085)
Change in amounts due on unfulfilled performance obligations	(17,012)		(68,662)
Change in cancellation reserve	(1,259)		(188)
Effect of foreign currency and other	3,598		(7,598)
Ending balance — Deferred revenue, net and Deferred receipts held in trust	$	7,494,225	$	6,976,633

(1)Includes both realized and unrealized investment gains (losses)

(2)Includes current year trust fund income through the date of performance