Acquisition Level 1 (Notes)

12 Months Ended

Dec. 31, 2025

Business Combination [Abstract]

Business Combination [Text Block]

Acquisitions

We spent $101.7 million and $182.9 million for several business acquisitions during the twelve months ended December 31, 2025 and 2024, respectively. This includes $0.4 million and $1.7 million of cash acquired in 2025 and 2024, respectively. In addition, we spent $18.5 million and $62.1 million for several real estate acquisitions during the twelve months ended December 31, 2025 and 2024, respectively.

In the third quarter of 2024, we acquired 10 funeral homes and 2 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 during the year ended 2024 after measurement period adjustments (in thousands):

Other current assets	$	2,201
Cemetery property	2,143
Property and equipment, net	51,259
Preneed receivables, net and trust investments	41,018
Deferred charges and other assets	340
Cemetery perpetual care trust investments	9,223
Goodwill	97,768
Total assets acquired	203,952
Current liabilities	2,369
Deferred revenue and deferred receipts held in trust	55,806
Long-term debt	15,431
Care trusts' corpus	9,223
Other liabilities	476
Total liabilities assumed	83,305
Net assets acquired	$	120,647

Goodwill and land recorded in the acquisitions are not subject to amortization; however, the goodwill will be tested periodically for impairment. Of the $97.8 million in recognized goodwill, $77.9 million is deductible for tax purposes. Of this total, $34.0 million was allocated to our cemetery segment, while $63.8 million was allocated to our funeral segment.

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 Gains (losses) on divestitures and impairment charges, net, which consist of the following:

	Years Ended December 31,
	2025		2024		2023
	(In thousands)
Gains on divestitures, net	$	9,551	$	11,337	$	12,543
Impairment losses	(3,400)		(23,825)		(2,727)
Gains (losses) on divestitures and impairment charges, net	$	6,151	$	(12,488)	$	9,816