CARRIAGE SERVICES INC 10-K

ITEM 2. PROPERTIES. At December 31, 2021, we operated 170 funeral homes in 26 states and 31 cemeteries in 11 states. We own the real estate and buildings for 149 of our funeral homes and lease 21 facilities. We own 30 cemeteries and operate one cemetery under a long-term contract with a municipality, which we refer to as a managed property. We operate 18 funeral homes in combination with cemeteries as these locations are physically located on the same property or in very close proximity and are under the same leadership. The 31 cemeteries that we operate have developed cemetery property of approximately 155,000 and 147,000 units available-for-sale at December 31, 2020 and 2021, respectively. In addition, we own approximately 500 acres that are available for future development or sale. We anticipate having a sufficient inventory of lots to maintain our property sales for the foreseeable future. 20 Table of Contents The following table sets forth certain information as of December 31, 2021, regarding our properties used by the funeral home segment and by the cemetery segment identified by state: Number of Funeral Homes Number of Cemeteries State Owned Leased (1) Owned Managed California 21 5 5 — Connecticut 7 2 — — Florida 9 5 5 — Georgia 3 — — — Idaho 4 1 3 — Illinois 2 — 1 — Kansas 2 — — — Kentucky 7 1 — — Louisiana 3 1 1 — Massachusetts 11 — — — Michigan 2 — — — Montana 2 1 1 — Nevada 2 — 2 1 New Jersey 2 1 — — New Mexico 1 — — — New York 10 1 — — North Carolina 7 1 1 — Ohio 5 — — — Oklahoma 5 — 2 — Pennsylvania 2 — — — Rhode Island 4 — — — Tennessee 4 — — — Texas 23 1 8 — Virginia 8 1 1 — Washington 2 — — — Wisconsin 1 — — — Total 149 21 30 1 (1) The leases, with respect to these funeral homes, generally have remaining terms ranging from one to twenty years, and generally, we have the right to renew past the initial terms and have a right of first refusal on any proposed sale of the property where these funeral homes are located. Our support center occupies approximately 48,000 square feet of leased office space in Houston, Texas. At December 31, 2021, we owned and operated 427 vehicles. The following table sets forth the number of funeral homes and cemeteries owned and operated by us for the periods presented: Years Ended December 31, 2019 2020 2021 Funeral homes at beginning of period 182 186 178 Acquisitions 9 1 — Divestitures (4) (8) (2) Mergers of funeral homes (1) (1) (6) Funeral homes at end of period 186 178 170 Cemeteries at beginning of period 29 31 32 Acquisitions 2 1 — Divestitures — — (1) Cemeteries at end of period 31 32 31 21 Table of Contents ITEM 3. LEGAL PROCEEDINGS. For more information regarding legal proceedings see Part II, Item 8, Financial Statements and Supplementary Data, Notes 16 and 24. ITEM 4. MINE SAFETY DISCLOSURES. Not applicable. PART II