6 unchanged sentences
We assume no obligation and make no undertaking to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the Company, whether as a result of new information, future events, or otherwise.
−Removed: Risks Related to Our Business
−Removed: The COVID-19 pandemic has impacted the global economy and has had an adverse effect on certain aspects of our business and results of operations while having a positive effect on others as described in Part II, Item 7, " Management Discussion and Analysis of Financial Condition and Results of Operations ." Future public health threats could have material adverse consequences for our business and results of operations.
−Removed: As a result of the COVID-19 pandemic and the related adverse economic and health consequences, we have experienced and may continue to be subject to any of the following risks:
−Removed: • our preneed funeral sales have decreased and our preneed cemetery sales temporarily decreased;
−Removed: • the value of our preneed trust investments and related net investment income temporarily diminished due to the disruption in the financial markets;
−Removed: • our funeral sales average has decreased.
−Removed: We may also experience the following COVID-19 related risks:
14 Service Corporation International
−Removed: • our funeral and cemetery revenues may decrease due to reduced and deferred services, actual or perceived consumer financial constraints, government restrictions on gathering sizes, and voluntary social distancing;
−Removed: • illness may disrupt our workforce;
−Removed: • our supply chain could be disrupted;
−Removed: • our operating costs may increase due to increased overtime, health insurance claims, worker’s compensation claims, supply costs, or other effects related to COVID-19.
−Removed: Any of the foregoing risks could have a material, adverse effect on our business, financial condition, and results of operations.
−Removed: Given the ongoing and dynamic nature of the spread of COVID-19, it is difficult to predict the full impact of the COVID-19 outbreak on our business.
−Removed: The extent of such impact will depend on future developments, which are highly uncertain and largely outside of our control.
+Added: Risks Related to Our Business
Our affiliated trust funds own investments in securities, which are affected by market conditions that are beyond our control.
12 unchanged sentences
We withdraw allowable cash when we incur qualifying cemetery maintenance costs.
−Removed: If the investments in our trust funds experience significant declines in 2021 or subsequent years, there could be insufficient funds in the trusts to cover the costs of delivering merchandise and services or maintaining our cemeteries in the future.
+Added: If the investments in our trust funds experience significant declines in 2022 or subsequent years or in a high inflation environment, there could be insufficient funds in the trusts to cover the costs of delivering merchandise and services or maintaining our cemeteries in the future.
We may be required to cover any such shortfall with cash flows from operations, which could have a material adverse effect on our financial condition, results of operations, and cash flows.
8 unchanged sentences
As of December 31, 2021, we had unrealized losses of $12.7 million in the various trusts within these states.
−Removed: See Off-Balance Sheet Arrangements, Contractual Obligations, and Commercial and Contingent Commitments in Part II, Item 7.
Our ability to execute our strategic plan depends on many factors, some of which are beyond our control.
7 unchanged sentences
Failure to execute any or all of our strategic plan could have a material adverse effect on our financial condition, results of operations, and cash flows.
+Added: Our results may be adversely affected by significant weather events, natural disasters, catastrophic events or public health crises.
+Added: Three of our largest states by total revenue are California, Texas and Florida, areas where natural disasters are more prevalent.
+Added: Significant weather events in these states or other key areas where our operations are concentrated, natural or other disasters, and unforeseen public health crises, such as pandemics and epidemics (including the ongoing COVID-19 pandemic), could disrupt our business through injury or illness to our associates or client families, physical damage, closure or destruction of one or more of our locations, data centers or office facilities, or disrupt the delivery of goods or services by one
+Added: or more of our vendors, any or all of which could adversely impact our operations or increase our costs, which would adversely affect our financial results.
Our credit agreements contain covenants that may prevent us from engaging in certain transactions.
33 unchanged sentences
Additionally, we receive an increasing death benefit associated with the contract of approximately 1% per year in cash at the time the service is performed.
−Removed: There is no guarantee that the increasing death benefit will cover future increases in the cost of providing a price-guaranteed service, and any such excess cost could be materially adverse to our financial condition, results of operations, and cash flows.
+Added: There is no guarantee that the increasing death benefit will cover future increases in the cost of providing a price-guaranteed service and merchandise, and any such excess cost could be materially adverse to our financial condition, results of operations, and cash flows.
16 Service Corporation International
24 unchanged sentences
regulatory environment surrounding information security and privacy is increasingly demanding.
−Removed: New laws and regulations governing data privacy, security, cybersecurity, and the unauthorized disclosure of confidential information, including recent California legislation, pose increasingly complex compliance challenges and potentially elevate our costs.
+Added: New laws and regulations governing data privacy, security, cybersecurity, and the unauthorized disclosure of confidential information, including recent legislation in California, other states, and Canadian provinces, pose increasingly complex compliance challenges and potentially elevate our costs.
Any failure by us to comply with these laws and regulations, including as a result of a security or privacy breach, could result in significant penalties and liabilities for us.
67 unchanged sentences
Our funeral and cemetery businesses are high fixed-cost businesses.
−Removed: The majority of our operations are managed in groups called “markets”.
+Added: The majority of our operations are managed in groups we call “markets”.
Markets are geographical groups of funeral service locations and cemeteries that share common resources such as operating personnel, preparation services, clerical staff, motor vehicles, and preneed sales personnel.
−Removed: We must incur many of these costs regardless of the number of services or interments performed.
+Added: We must incur many of these costs, which may be impacted by many factors, including inflation, regardless of the number of services or interments performed.
Because we cannot immediately decrease these costs when we experience lower sales volumes, a sales decline may cause our margin percentages to decline at a greater rate than the decline in revenue.
+Added: Risks associated with our supply chain could materially adversely affect our financial performance.
+Added: We are dependent on our supply chain to supply merchandise to our funeral home and cemetery locations.
+Added: If our fulfillment network does not operate properly, if a supplier fails to deliver on its commitments, or if delivery networks have difficulty providing capacity to meet demands for their services, we could experience merchandise delivery delays or increased delivery costs, which could lead to lost sales and decreased customer confidence, and adversely affect our results of operations.
+Added: Changes in the costs of procuring commodities used in our merchandise or the costs related to our supply chain, due to inflation or other matters, could adversely affect our results of operations.
Regulatory and Legal Risks
44 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.