Leases (Notes)

12 Months Ended

Dec. 31, 2025

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, 2025 were as follows:


	Operating		Finance		Total
	(In thousands)

2026	$	10,403	$	44,461	$	54,864
2027	9,566		36,082		45,648
2028	7,918		27,822		35,740
2029	6,466		19,435		25,901
2030	5,183		12,199		17,382
2031 and thereafter	26,093		41,401		67,494
Total lease payments	$	65,629	$	181,400	$	247,029
Less: Interest	(14,843)		(30,339)		(45,182)
Present value of lease liabilities	$	50,786	$	151,061	$	201,847

The components of lease cost were as follows:




	Years Ended December 31,
	2025		2024		2023
	(In thousands)
Amortization of leased assets	$	39,392	$	37,421	$	34,212
Interest on lease liabilities	8,150		7,266		4,795
Total finance lease cost	47,542		44,687		39,007
Operating lease cost	12,010		11,245		10,531
Variable lease cost	528		637		872
Total lease cost	$	60,080	$	56,569	$	50,410

Supplemental balance sheet information related to leases was as follows:


Lease Type	Balance Sheet Classification	December 31, 2025		December 31, 2024
		(In thousands)
Operating lease right-of-use assets (1)	Deferred charges and other assets	$	47,535	$	50,113
Finance lease right-of-use assets (1)	Property and equipment, net	145,319		140,094
Total right-of-use assets (1)		$	192,854	$	190,207


Operating	Accounts payable and accrued liabilities	$	8,201	$	7,861
Finance	Current maturities of long-term debt	37,167		34,816
Total current lease liabilities		$	45,368	$	42,677

Operating	Other liabilities	42,585		45,269
Finance	Long-term debt	113,894		110,245
Total non-current lease liabilities		156,479		155,514
Total lease liabilities		$	201,847	$	198,191

(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, 2025		December 31, 2024
	Operating	Finance	Operating	Finance
Weighted-average remaining lease term (years)	10.2	6.2	10.6	6.1
Weighted-average discount rate	4.7%	5.4%	4.6%	5.3%

Supplemental cash flow information related to leases was as follows:



	Years Ended December 31,
	2025		2024		2023
	(In thousands)
Cash paid for amounts in the measurement of lease liabilities:
Operating cash flows for operating leases	$	11,476	$	11,181	$	10,473
Operating cash flows for finance leases	8,150		7,371		5,191
Financing cash flows for finance leases	38,321		36,840		34,482
Total cash paid for amounts included in the measurement of lease liabilities	$	57,947	$	55,392	$	50,146

New finance leases	46,046		54,118		57,962
Finance lease renewals and extensions	3		443		829
Right-of-use assets obtained in exchange for finance lease liabilities	$	46,049	$	54,561	$	58,791

New operating leases	3,103		5,067		6,534
Operating lease renewals and extensions	4,208		4,081		2,985
Right-of-use assets obtained in exchange for operating lease liabilities	$	7,311	$	9,148	$	9,519

We have 80 operating leases where we are the lessor and the non-cancelable term is greater than one year, resulting in $3.6 million and $3.9 million in lease income for the years ended December 31, 2025, and 2024, 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, 2025 (in thousands):


2026	$	3,317
2027	2,582
2028	2,265
2029	1,598
2030	880
2031 and thereafter	4,825
Total expected cash receipts	$	15,467

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, 2025, 2024, and 2023. As of December 31, 2025, our Consolidated Balance Sheet includes land of $24.7 million, and buildings and improvements of $9.3 million, net of $2.7 million accumulated depreciation, related to the buildings and improvements.