Preneed Activities Level 1 (Notes)

3 Months Ended

Mar. 31, 2025

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:



	March 31, 2026		December 31, 2025
	(In thousands)
Preneed receivables, net	$	1,538,865	$	1,561,836

Trust investments, at fair value	7,860,259		7,965,010

Insurance-backed fixed income securities and other	230,763		232,560
Trust investments	8,091,022		8,197,570
Less: Cemetery perpetual care trust investments	(2,365,441)		(2,398,613)
Preneed trust investments	5,725,581		5,798,957

Preneed receivables, net and trust investments	$	7,264,446	$	7,360,793

Preneed receivables, net comprised the following:


	March 31, 2026
	Funeral		Cemetery		Total
	(In thousands)
Preneed receivables	$	133,697	$	1,474,678	$	1,608,375
Unearned finance charges	(14,305)		(20,566)		(34,871)
Preneed receivables, at amortized cost	119,392		1,454,112		1,573,504
Reserve for credit losses	(20,910)		(13,729)		(34,639)
Preneed receivables, net	$	98,482	$	1,440,383	$	1,538,865

	December 31, 2025
	Funeral		Cemetery		Total
	(In thousands)
Preneed receivables	$	142,485	$	1,482,721	$	1,625,206
Unearned finance charges	(13,486)		(15,204)		(28,690)
Preneed receivables, at amortized cost	128,999		1,467,517		1,596,516
Reserve for credit losses	(20,632)		(14,048)		(34,680)
Preneed receivables, net	$	108,367	$	1,453,469	$	1,561,836

At March 31, 2026, the amortized cost basis of our preneed receivables by year of origination was as follows:



	2026		2025		2024		2023		2022		Prior		Total
	(In thousands)
Preneed receivables, at amortized cost:
Funeral	$	7,973	$	21,028	$	30,967	$	25,123	$	12,717	$	21,584	$	119,392
Cemetery	141,698		535,673		363,911		227,439		117,882		67,509		1,454,112
Total preneed receivables, at amortized cost	$	149,671	$	556,701	$	394,878	$	252,562	$	130,599	$	89,093	$	1,573,504

At March 31, 2026, 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	$	2,730	$	1,726	$	1,343	$	30,668	$	36,467	$	82,925	$	119,392
Cemetery	54,309		37,868		14,121		5,540		111,838		1,342,274		1,454,112
Total preneed receivables, at amortized cost	$	57,039	$	39,594	$	15,464	$	36,208	$	148,305	$	1,425,199	$	1,573,504

The following table summarizes the activity for the reserve for credit losses on preneed receivables for the three months ended March 31, 2026:



	December 31, 2025		Provision for Expected Credit Losses		Write Offs		Effect of Foreign Currency		March 31, 2026
	(In thousands)
Funeral	$	(20,632)	$	(962)	$	683	$	1	$	(20,910)
Cemetery	(14,048)		36		277		6		(13,729)
Total reserve for credit losses on preneed receivables	$	(34,680)	$	(926)	$	960	$	7	$	(34,639)

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


	Three months ended March 31,
		2026		2025
		(In thousands)
Deposits		$	171,570	$	158,266
Withdrawals		$	151,731	$	142,934
Purchases of securities		$	545,607	$	555,267
Sales of securities		$	462,551	$	473,883
Realized gains from sales of securities(1)		$	143,565	$	101,265
Realized losses from sales of securities(1)		$	(24,924)	$	(26,137)

(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.


		March 31, 2026
	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Value
				(In thousands)
Fixed income securities:
U.S. Treasury	2	$	50,442	$	185	$	(514)	$	50,113
Canadian government	2	26,234		—		—		26,234
Corporate	2	10,205		214		(7)		10,412
Residential mortgage-backed	2	2,998		56		(25)		3,029
Asset-backed	2	256		—		(35)		221
Equity securities:
Preferred stock	2	20,067		1,633		(1,363)		20,337
Common stock:
United States	1	2,140,353		655,820		(157,903)		2,638,270
Canada	1	43,198		30,897		(1,863)		72,232
Other international	1	160,149		42,524		(14,038)		188,635
Mutual funds:
Equity	1	963,844		254,182		(33,578)		1,184,448
Fixed income	1	701,527		4,714		(35,252)		670,989

Trust investments, at fair value		4,119,273		990,225		(244,578)		4,864,920
Commingled funds
Fixed income		1,427,441		5,623		(62,472)		1,370,592
Equity		360,501		138,669		(450)		498,720
Money market funds		370,628		—		—		370,628
Alternative investments		512,831		252,126		(9,558)		755,399
Trust investments, at net asset value		2,671,401		396,418		(72,480)		2,995,339
Trust investments, at market		$	6,790,674	$	1,386,643	$	(317,058)	$	7,860,259

As of March 31, 2026 and December 31, 2025, our unfunded commitment for our private equity investments was $409.5 million and $435.7 million respectively, which, if called, would be funded by the assets of the trusts.


		December 31, 2025
	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Value
				(In thousands)
Fixed income securities:
U.S. Treasury	2	$	50,233	$	305	$	(488)	$	50,050
Canadian government	2	26,086		—		—		26,086
Corporate	2	10,352		310		(7)		10,655
Residential mortgage-backed	2	3,202		68		(28)		3,242
Asset-backed	2	279		—		(41)		238
Equity securities:
Preferred stock	2	13,831		2,428		—		16,259
Common stock:
United States	1	2,071,402		745,982		(95,511)		2,721,873
Canada	1	41,650		34,904		(1,219)		75,335
Other international	1	167,881		43,880		(5,910)		205,851
Mutual funds:
Equity	1	938,778		253,372		(5,546)		1,186,604
Fixed income	1	671,067		8,531		(27,280)		652,318

Trust investments, at fair value		3,994,761		1,089,780		(136,030)		4,948,511
Commingled funds
Fixed income		1,387,350		14,443		(50,208)		1,351,585
Equity		362,862		155,590		—		518,452
Money market funds		423,957		—		—		423,957
Alternative investments		503,898		228,320		(9,713)		722,505
Trust investments, at net asset value		2,678,067		398,353		(59,921)		3,016,499
Trust investments, at market		$	6,672,828	$	1,488,133	$	(195,951)	$	7,965,010

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 2026 to 2044. Maturities of fixed income securities (excluding mutual funds) at March 31, 2026 are estimated as follows:


	Fair Value
	(In thousands)
Due in one year or less	$	51,037
Due in one to five years	33,709
Due in five to ten years	5,234
Thereafter	29
Total estimated maturities of fixed income securities	$	90,009

Recognized trust fund income (realized and unrealized) related to our preneed trust investments was $56.2 million and $48.2 million for the three months ended March 31, 2026 and 2025, respectively. Recognized trust fund income (realized and unrealized) related to our cemetery perpetual care trust investments was $30.9 million and $26.1 million for the three months ended March 31, 2026 and 2025, 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:


	March 31, 2026		December 31, 2025
	(In thousands)
Deferred revenue	$	2,802,966	$	2,790,149
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts	(1,003,390)		(1,010,883)
Deferred revenue, net	$	1,799,576	$	1,779,266

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


	Three months ended March 31,
	2026		2025
	(In thousands)
Beginning balance — Deferred revenue, net and Deferred receipts held in trust	$	7,563,664	$	6,917,695
Net preneed contract sales	333,041		319,000
Acquisitions of businesses, net	2,765		928
Net investment gains (losses)(1)	(95,034)		(68,080)
Recognized revenue from backlog(2)	(182,774)		(175,041)
Recognized revenue from current period sales	(115,570)		(112,199)
Change in amounts due on unfulfilled performance obligations	7,063		(3,671)
Change in cancellation reserve	(305)		(18)
Effect of foreign currency and other	(4,070)		1,892
Ending balance — Deferred revenue, net and Deferred receipts held in trust	$	7,508,780	$	6,880,506

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

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