What changed in this filing

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Item 1. Business

2023-02-15 compared with 2022-02-15 · 108 added, 122 removed, 249 unchanged (48% of the section changed)

5 unchanged sentences

We sell cemetery property and funeral and cemetery merchandise and services at the time of need and on a preneed basis.

Human Capital Management

At December 31, 2022, we employed 17,589 full-time individuals and 7,550 part-time individuals.

Of the full-time associates, 15,028 were employed in the funeral and cemetery operations and 2,561 were employed in corporate or other overhead areas of our business.

Approximately 2.1% of our associates are represented by unions.

Although labor disputes occur from time to time, relations with associates are generally considered favorable.

We reach out to our associates for feedback throughout their employment at SCI using a variety o f voluntary surveys ensuring we are meeting the needs and expectations of our large and diverse workforce.

Associate Benefits

Eligible associates in the United States may elect coverage under our group health and life insurance plans.

Associates covered by a collective bargaining agreement are typically covered by union health plans and, therefore, do not participate in our health insurance plan.

At December 31, 2022 and 2021, there were 9,478 and 9,685 associates, respectively, who had elected to participate in our group health insurance plans.

Eligible associates in the United States are covered by retirement plans of SCI or various subsidiaries, while international associates are covered by other SCI (or SCI subsidiary) defined contribution or government-mandated benefit plans.

We have an employee savings plan that qualifies under Section 401(k) of the Internal Revenue Code for the exclusive benefit of our United States employees.

We contribute a matching contribution based on the employee's contribution and years of vesting service.

For more information about our retirement plans, see Note 12 of Part II, Item 8.

Financial Statements and Supplementary Data.

We understand the importance of work-life balance and provide other benefits such as baby bonding time, paid time off for various reasons, and financial planning support for our associates.

Additionally, we offer an employee assistance program that offers free and confidential counseling by masters level counselors for associates who may be facing mental health challenges.

Inclusion and Diversity

We believe in the power of inclusion and respecting our fellow associates’ work, ideas, beliefs, and lifestyles.

Our Inclusion and Diversity (I&D) Committee, which is a cross-functional team of associates, has been key to the development of programs such as our Women’s Leadership Conference and Associate Resource Communities (ARCs).

The ARCs allow colleagues with similar backgrounds or interests to connect for networking, provide opportunities for growth, and support the communities and customers we serve.

Our leadership team is committed to advancing inclusion and diversity within the workplace.

By embracing the many backgrounds and perspectives that make each of us unique, we are able to remain relevant to the diverse families we serve.

We have created an I&D senior management position to support the Company's belief that diversity of talent and people is a key driver of better business outcomes.

Training and Development

We provide opportunities for career growth and supporting the personal and professional goals of our associates is a priority for us.

In addition to development programs and a robust online training portal offering thousands of courses, books, audiobooks, and videos, associates can participate in mentoring programs and take advantage of discounts and tuition reimbursement through our many university partnerships.

We are also proud to offer scholarship and apprentice programs to those interested in joining our profession.

Our funeral operations are regulated by the Federal Trade Commission (the “FTC”) under the FTC’s Trade Regulation Rule on Funeral Industry Practices (the “Funeral Rule”), which went into effect in 1984.

The Funeral Rule defines certain acts or practices as unfair or deceptive and contains certain requirements to prevent these acts or practices.

The preventive measures require a funeral provider to give consumers accurate, itemized price information and various other disclosures about funeral merchandise and services and prohibit a funeral provider from:

1) misrepresenting legal, crematory, and cemetery requirements;

2) embalming for a fee without permission;

3) requiring the purchase of a casket for direct cremation;

and 4) requiring consumers to buy certain funeral merchandise or services as a condition for furnishing other funeral merchandise or services.

Our operations are also subject to regulation, supervision, and licensing under numerous federal, state, and local laws and regulations as well as Canadian provincial laws and regulations.

For example, state laws impose licensing requirements for funeral service locations and funeral directors and regulate preneed sales including our preneed trust activities.

Our facilities are subject to environmental, health, and safety regulations.

We take various measures to comply with the Funeral Rule and all laws and regulations.

For example, we have established and maintain policies and procedures around our business practices;

we provide training of our personnel;

and we perform ongoing reviews of our compliance efforts.

We are currently in substantial compliance with the Funeral Rule and all laws and regulations.

Federal, state, and local legislative bodies and regulatory agencies (including Canadian legislative bodies and agencies) frequently propose new laws and regulations, some of which could have a material effect on our operations and on the deathcare industry in general.

We cannot accurately predict the outcome of any proposed legislation or regulation or the effect that any such legislation or regulation might have on us.

We were incorporated in Texas in July of 1962.

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In early 2010, we acquired the then fifth largest company in the North American deathcare industry, Keystone North America.

In June of 2011, we acquired 70% of the outstanding shares of The Neptune Society, Inc.

In June 2011, we acquired 70% of the outstanding shares of The Neptune Society, Inc.

(Neptune), which is the nation's largest direct cremation organization, now known as SCI Direct.

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Funeral service/cemetery combination locations are businesses in which a funeral service location is physically located within or adjoining a cemetery that we own.

Combination locations allow certain facility, personnel, and equipment costs to be shared between the funeral service location and cemetery locations.

Such combination facilities typically are more cost competitive and have higher gross margins than funeral and

Combination locations allow certain facility, personnel, and equipment costs to be shared between the funeral service location and a cemetery location.

Combination facilities typically are more cost competitive and have a higher gross margin than funeral and

6 Service Corporation International

cemetery operations that are operated separately.

Combination locations also create synergies between funeral and cemetery preneed sales force personnel and give families added convenience to purchase both funeral and cemetery merchandise and services at a single location.

Combination locations also create synergies between funeral and cemetery sales personnel and give families added convenience to purchase both funeral and cemetery merchandise and services at a single location.

Funeral service locations provide all professional services related to funerals and cremations, including the use of funeral home facilities and motor vehicles, arranging and directing services, removal, preparation, embalming, cremations, memorialization, and catering.

Funeral merchandise, including burial caskets and related accessories, urns and other cremation receptacles, outer burial containers, flowers, online and video tributes, stationery products, casket and cremation memorialization products, travel protection, and other ancillary merchandise, is sold at funeral service locations.

Funeral merchandise, including burial caskets and related accessories, urns and other cremation receptacles, outer burial containers, flowers, online and video tributes, stationery products, casket and cremation memorialization products, and other ancillary merchandise, is sold at funeral service locations.

Our cemeteries provide cemetery property interment rights, including developed lots, lawn crypts, mausoleum spaces, niches, and other cremation memorialization and interment options.

Cemetery merchandise and services, including memorial markers and bases, outer burial containers, flowers and floral placement, other ancillary merchandise, graveside services, merchandise installation, and interments, are sold at our cemeteries.

Cemetery merchandise and services, including memorial cemetery markers and bases, outer burial containers, flowers and floral placement, other ancillary merchandise, graveside services, merchandise installation, and interments, are sold at our cemeteries.

We also sell cemetery property interment rights and funeral and cemetery merchandise and services whereby a customer contractually agrees to the terms of certain products and services to be delivered and performed in the future.

We define these sales as preneed sales.

As a result of such preneed sales, our preneed backlog of unfulfilled funeral and cemetery contracts was $13.7 billion and $12.7 billion at December 31, 2021 and 2020, respectively.

As a result of such preneed sales, our preneed backlog of unfulfilled funeral and cemetery contracts was $13.7 billion at December 31, 2022 and 2021.

The following table at December 31, 2022 provides the number of our funeral service locations and cemeteries by country, and by state, territory, or province:

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Nebraska 8 2 10

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Country, State/Territory/Province Number of Funeral Service Locations Number of Cemeteries Total

Nevada 15 6 21

Country, State/Territory/Province Number of Funeral Service Locations Number of Cemeteries Total

New Hampshire 6 — 6

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Saskatchewan 14 — 14

1,471 488 1,959

(1) Includes businesses held for sale at December 31, 2021.

Total funeral service locations and cemeteries 1,474 490 1,964

We believe we have satisfactory title to the properties owned and used in our business, subject to various liens, encumbrances, and easements that are incidental to ownership rights and uses and do not materially detract from the value of the property.

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The property consists of approximately 160,000 square feet of office space and 185,000 square feet of parking space on approximately seven acres.

We also lease approximately 35,000 square feet of office space in Houston, Texas, which we utilize for corporate activities.

We own a building in Jefferson, Louisiana with approximately 96,200 square feet of office space that we use, in part, for corporate activities.

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A map of our locations in North America is presented below:

COVID-19 Impact

During 2020, an outbreak of a novel strain of coronavirus (COVID-19) spread worldwide and was declared a global pandemic by the World Health Organization on March 11, 2020.

The health, safety, and mental well-being of our associates continues to be a top priority throughout this COVID-19 pandemic.

We provide an employee assistance program that offers free and confidential counseling by masters level counselors for our associates.

We have been able to avoid layoffs, mandatory furloughs, and any widespread reductions in pay as a result of the impact of COVID-19.

In 2020 and in 2021, we awarded "hero bonuses" and other bonuses to associates in recognition of their courageous efforts and dedication to serving families throughout the pandemic.

In early 2020, the rigorous restrictions placed on gatherings and mandates by state, provincial, and local governments posed a unique challenge for our locations.

We quickly implemented technology solutions, including livestreaming on social media, that allowed extended family and friends to virtually participate in the ceremony alongside the immediate family.

In certain instances, atneed funeral directors still have the option of using virtual meeting platforms as a tool to discuss and plan service details with client families if requested by families.

Our preneed sales teams continue to overcome social distancing obstacles in certain areas of the country by leveraging virtual arrangements with customers who may prefer to purchase cemetery property and merchandise from the safety of their home or setting up outdoor canopies to discuss pre-planning from a safe distance.

By capitalizing on our physical and digital presence in our response to the COVID-19 crisis, we have been able to further leverage our scale.

The accelerated use of new technology required to successfully meet customer needs during COVID-19 has provided many advantages and further differentiates us from our competitors.

The utilization of technology is increasing digital sales leads to record levels and producing a more effective and efficient sales model through enhanced use of our customer relationship management platform.

In addition, we experienced an improvement in our customer relationships due to a dedicated focus on service excellence and honoring the details of every life we are privileged to serve, as well as enabling a seamless interaction with families through a best-in-class website experience.

Our continued focus on service excellence during these trying times has been recognized by families who continue to share their positive experiences publicly through online customer satisfaction ratings and reviews.

Our average customer satisfaction ratings continue to remain high through various social media platforms and directly reflect the efforts of our front-line heroes, who consistently go above and beyond for the families we serve.

In 2021, we continued to experience the impact of COVID-19 variants.

However, we have seen community restrictions lifted and vaccine distribution more widespread.

As restrictions have lifted, we have seen an increase in the number of families who desire memorial services which has driven significant growth in our preneed sales as well as positively affected our average revenue per funeral service.

We view this as further evidence that our customers continue to value what our team does best, which is helping our client families gain closure and healing through the process of grieving, remembrance, and celebration.

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Like most businesses world-wide, COVID-19 is still impacting various aspects of our business operations;

however, we cannot, with certainty, predict the scope, severity, or duration with which COVID-19 will continue to impact our business, financial condition, results of operations, and cash flows.

Since the World Health Organization declared the worldwide outbreak of a novel strain of coronavirus (COVID-19) a global pandemic in March 2020, we have worked continuously to meet the challenges it presented.

Like many businesses worldwide, COVID-19 is still directly and indirectly impacting various aspects of our business operations.

We continue to maintain a high priority focus on the health, safety, and mental well-being of our associates.

We provide an employee assistance program that offers free and confidential counseling by masters level counselors for our associates' overall mental health.

We have avoided layoffs, mandatory furloughs, and any widespread reductions in pay as a result of the impact of COVID-19.

Over the last several years, we have awarded discretionary bonuses to associates in recognition of their courageous efforts and dedication to serving families throughout the pandemic.

To ensure both associate and customer safety, we quickly implemented technology solutions during the early part of the pandemic to overcome social distancing restrictions.

Many of these solutions are still in place today and helped us accelerate the use of technology throughout our organization, particularly within our sales team with the use of our customer relationship management system and digital leads.

By capitalizing on our physical and digital presence in our response to the COVID-19 crisis, we were able to further leverage our scale.

This accelerated the use of new technology required to successfully meet customer needs during COVID-19 and has provided many advantages which further differentiates us from our competitors.

We view the demand for robust services and celebrations of life through the COVID-19 pandemic as evidence that our customers value what our team does best, which is helping our client families gain closure and healing through the process of grieving, remembrance, and celebration.

Although there are several public companies that own funeral service locations and cemeteries, the majority of deathcare businesses in North America are locally-owned, independent operations.

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Like most businesses world-wide, COVID-19 has impacted various aspects of our business operations, however, our fundamental strategy has not changed.

Over the next several years, our industry will be largely shaped by the aging of the Baby Boomer generation in the deathcare space and are poised to benefit from the aging of the North American population.

Over the next several years, our industry will be largely shaped by the aging of the Baby Boomer generation in the deathcare space and we are poised to benefit from the aging of the North American population.

In each stage of life, Baby Boomers have set new trends, transformed society, and redefined norms, and we anticipate the impact will be the same for our industry.

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The following strategies remain the core of our foundation:

1) grow revenue, 2) leverage our unparalleled scale, and 3) deploy capital.

1) grow revenue, 2) leverage our unparalleled scale, and 3) invest capital.

While these strategies remain unchanged, a shift to increased utilization of technology during the COVID-19 pandemic has influenced how we serve our customers and how we invest our capital.

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The growing trend of cremation requires more flexibility in providing products and services.

We have developed cremation service packages, which may or may not include a celebratory memorialization.

We have developed cremation service packages, which may or may not include a celebratory memorialization, depending on the consumers preference.

In our cemetery business, we continue to grow revenue by responding to the customer’s desire for personalized and unique options by expanding our tiered product and cemetery property options.

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For cemetery merchandise and services, we have developed innovative products such as recurring floral placements, customized cemetery property offerings, and specialized graveside service options.

We continue to embrace cremation opportunities for customers

in our cemetery segment by offering an increased variety of cremation property options, including glass-front niches and scattering gardens.

We continue to embrace cremation opportunities for customers in our cemetery segment by offering an increased variety of cremation property options, including glass-front niches and scattering gardens.

As we evolve to meet ever-changing customer preferences, we will continue catering to the religious, ethnic, and cultural traditions important to many of our customers.

Throughout the COVID-19 pandemic, we have remained flexible to meet the varying needs of customers.

This flexibility has demonstrated our resolve to remain relevant to changing customer preferences.

We have remained flexible to meet the varying needs of customers, demonstrating our resolve to remain relevant to changing customer preferences.

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Growing Preneed Sales

Our preneed sales program drives current and future revenue growth.

Baby Boomers have been impacting our cemetery preneed sales for several years and are beginning to positively impact the growth of our preneed funeral sales programs.

Our sales organization is supported by a highly trained sales force of approximately 3,750 counselors, who provide customers informed guidance about various service and merchandise options tailored for today’s consumers.

Baby Boomers have been influencing our cemetery preneed sales for several years and are beginning to positively affect the growth of our preneed funeral sales programs.

Our highly trained sales force of approximately 3,750 counselors provide customers with informed guidance about various service and merchandise options tailored for today’s consumers.

Utilizing our scale, our counselors are reaching out to consumers through multiple lead channels, driving future revenue growth.

We sponsor community events and seminars to educate and provide guidance around preplanning both funeral and cemetery services and merchandise.

In 2019, we adopted a more sophisticated and targeted direct mail approach and we continue increasing our digital presence through search engine optimization and other marketing channels.

We have adopted a more sophisticated and targeted direct mail approach, and we continue increasing our digital presence through search engine optimization and other marketing channels.

We have a unique competitive advantage to continue growing preneed sales benefiting from our size and scale.

Our preneed program provides us with an opportunity to develop greater brand awareness, gives consumers peace of mind about their end of life arrangements, and secures future market share.

We saw significant growth in our digital lead channels throughout 2020 and 2021 due to our efforts to increase our digital presence and also from the impact of the COVID-19 pandemic.

In addition, our increased digital presence has provided significant growth in our digital lead channels over the last several years.

Leverage Our Unparalleled Scale

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Our scale enables cost efficiencies through purchasing power and utilizing economies of scale through our supply chain channel.

During the COVID-19 pandemic, we have been able to continue to operate without any major disruptions to our business, which highlights the strength of our scale.

During the COVID-19 pandemic, we were able to continue to operate without any major disruptions to our business, which highlights the strength of our scale.

Developing Our Sales Organization

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Our premier combination locations and other large and recognizable cemeteries and funeral homes attract high-quality sales talent.

Our scale allows us to operate and expand our sales organization in a manner that our competitors cannot replicate.

During 2020 and 2021, we were able to train and quickly develop our sales organization to be able to efficiently complete digital sales with the use of various online tools.

Our scale allows us to operate and expand our sales organization in a manner that would be difficult for our competitors to replicate.

Optimizing Our Network and Deploying Customer-Facing Technology

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Our mobile preneed sales system, Beacon, provides customers with a full digital presentation experience in their home or other place of their choosing.

In 2018, we completed a redesign of our Dignity Memorial® location websites.

Featuring a modern and user-friendly design, these location-specific websites are designed for mobile use and optimized for better search engine ranking.

In addition to the contemporary and sophisticated design, client families now enjoy new features such as a streamlined obituary completion process, social media sharing capabilities, and the ability to create and share personalized content in memory of their loved one.

As result of these efforts, the number of visits to our websites grew significantly.

During 2019, we took significant steps improving the quality of customer feedback and elevating our online reputation.

We engaged a third party to increase the response rate from customers for online reviews which has resulted in a significant increase in the number of reviews over the past two years.

Online reviews provide visibility of customer engagement down to the location level and shorten our response time in addressing customer concerns.

We collaborated with a leading technology partner to deliver the J.D.

Power surveys digitally, which has increased the quality of customer feedback and reduced the time it takes to receive customer feedback.

Our Dignity Memorial® location websites feature a modern and user-friendly design.

Our location-specific websites are designed for mobile use and optimized for better search engine ranking.

In addition to the contemporary and sophisticated design, client families enjoy innovative features such as an interactive obituary experience, social media sharing capabilities, the ability to create and share personalized content in memory of their loved one, and the ability to see venue and catering options for locations.

We have reduced the time it takes to receive customer feedback through digital J.D.

Power surveys.

Online reviews provide visibility of customer engagement down to the location level and shorten our response time in addressing any customer concerns.

We have established a social media presence for a number of our funeral and cemetery businesses, including the ability to livestream services at many of our locations.

These digital efforts resulted in favorable customer satisfaction ratings and increased digital sales leads over the last several years.

Although 2020 and 2021 were difficult in many unexpected ways, we learned valuable lessons around our ability to quickly deploy customer-facing technology.

Our associates and client families embraced an increasingly digital world and we utilized various online tools to complete sales and meet families while social distancing during the COVID-19 pandemic.

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encouraged by the increased digitization and we are making great strides with internal projects leveraging technology and simplifying nearly every facet of service delivery.

Although the last several years were difficult in many unexpected ways through the COVID-19 pandemic, we learned valuable lessons around our ability to quickly deploy customer-facing technology.

Our associates and client families embraced an increasingly digital world and we utilized various online tools to complete sales and meet families.

We are encouraged by the increased digitization and we are making great strides with internal projects leveraging technology and simplifying nearly every facet of service delivery.

Growing Our Preneed Backlog

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Our blended funding approach between insurance and trust-funded merchandise and service products allows us to combine the positive cash flow and predictability of the insurance product with the potential upside of higher returns from our trusted merchandise and service products.

This blended approach also results in our ability to grow our preneed backlog in a cash flow neutral manner.

Additionally, we are experiencing contracts coming out of the backlog today with growth rates that are superior to the comparable growth in atneed pricing due to higher market performance.

Deploy Capital

This blended approach also helps our ability to grow our preneed backlog in a cash flow neutral manner.

Invest Capital

We maximize capital deployment opportunities in a disciplined and balanced manner to the highest relative return.

Our strong liquidity, favorable debt maturity profile, and robust cash flow generation enables us to continue our long-standing commitment to use capital deployment to opportunistically grow our business and enhance shareholder value, even during the COVID-19 pandemic.

Typically, our highest relative return opportunities come from acquisitions and funeral service and cemetery new builds.

During 2020 and 2021, we were able to weather the uncertainty created by the COVID-19 pandemic and strategically deploy capital to the highest relative return opportunities.

Investing in Acquisitions and Building New Funeral Service and Cemetery Locations

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For our cemetery businesses, we plan to pursue strategic acquisitions to create more opportunities to serve Baby Boomers through our tiered cemetery options.

Additionally, we acquire land that will be developed for future cemetery use in some of our largest markets.

Additionally, we acquire land for future cemetery development in some of our largest markets.

This investment in our future will allow us to continue creating cemetery offerings that appeal to varying preferences in those markets for many years to come.

We were able to invest $121.4 million in acquiring 30 funeral homes and 2 cemeteries in 2021.

We invested $102.6 million in acquiring 18 funeral service locations and 3 cemeteries, which included 3 combination locations, in 2022.

Managing Debt

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This cash flow stream and our significant liquidity allow us to substantially reduce our long-term debt maturities should we choose to do so.

In January 2023, we entered into a new bank credit agreement that consists of a $675.0 million Term Loan due January 2028 and an increased Bank Credit Facility due January 2028 providing for borrowings of up to $1.5 billion.

Proceeds from this new bank credit agreement were used to settle our existing Term Loan and Bank Credit Facility due May 2024.

The new bank credit agreement provides us with flexibility for incremental liquidity, capital investment, working capital, and other general corporate purposes.

Return Excess Cash to Shareholders

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Information contained on our website is not part of this report.

The SEC also maintains an internet site at http://www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically.

Human Capital Management

At December 31, 2021, we employed 17,022 full-time individuals and 7,636 part-time individuals.

Of the full-time associates, 14,663 were employed in the funeral and cemetery operations and 2,359 were employed in corporate or other overhead areas of our business.

Approximately 2.5% of our associates are represented by unions.

Although labor disputes occur from time to time, relations with associates are generally considered favorable.

Associate Benefits

All eligible associates in the United States may elect coverage under our group health and life insurance plans.

Associates covered by a collective bargaining agreement are typically covered by union health plans and, therefore, do not participate in our health insurance plan.

At December 31, 2021 and 2020, there were 9,685 and 9,620 associates, respectively, who had elected to participate in our group health insurance plans.

We have an employee savings plan that qualifies under Section 401(k) of the Internal Revenue Code for the exclusive benefit of our United States employees.

We contribute a matching contribution based on the employee's contribution and years of vesting service.

For more information about our retirement plans, see Note 12 of Part II, Item 8.

Financial Statements and Supplementary Data.

We understand the importance of work-life balance and provide other benefits such as baby bonding time, paid time off for various reasons, and financial planning support for our associates.

Additionally, we offer an employee assistance program that offers free and confidential counseling by masters level counselors for associates who may be facing challenges outside of the workplace.

Inclusion and Diversity

We believe in the power of inclusion and respecting our fellow associates’ work, ideas, beliefs, and lifestyles.

The ARCs allow colleagues with similar backgrounds or interests to connect for networking, provide opportunities for growth, and support the communities and customers we serve.

Our leadership team is committed to advancing inclusion and diversity within the workplace.

By embracing the many backgrounds and perspectives that make each of us so unique, we are able to remain relevant to the diverse families we serve.

We recently added an I&D senior management position to support the Company's belief that diversity of talent and people is a key driver of better business outcomes.

Training and Development

We provide opportunities for career growth and supporting the personal and professional goals of our associates is a priority for us.

In addition to development programs and a robust online training portal offering more than 2,500 courses, associates can participate in mentoring programs and take advantage of discounts and tuition reimbursement through our many university partnerships.

We are also proud to offer scholarship and apprentice programs to those interested in joining our profession.

In addition, the SEC also maintains a website that contains reports, proxy and information statements, and other information regarding issuers where you may obtain a copy of all of the material we file publicly with the SEC.

The SEC website address is http://www.sec.gov .

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The Funeral Rule defines certain acts or practices as unfair or deceptive and contains certain requirements to prevent these acts or practices.

1) misrepresenting legal, crematory, and cemetery requirements;

2) embalming for a fee without permission;

3) requiring the purchase of a casket for direct cremation;

and 4) requiring consumers to buy certain funeral merchandise or services as a condition for furnishing other funeral merchandise or services.

Our operations are also subject to regulation, supervision, and licensing under numerous federal, state, and local laws and regulations as well as Canadian provincial laws and regulations.

For example, state laws impose licensing requirements for funeral service locations and funeral directors and regulate preneed sales including our preneed trust activities.

Our facilities are subject to environmental, health, and safety regulations.

We take various measures to comply with the Funeral Rule and all laws and regulations.

For example, we have established and maintain policies and procedures around our business practices;

we provide training of our personnel;

and we perform ongoing reviews of our compliance efforts.

We are currently in substantial compliance with the Funeral Rule and all laws and regulations.

We cannot accurately predict the outcome of any proposed legislation or regulation or the effect that any such legislation or regulation might have on us.

Executive Officers of the Company

The following table as of February 15, 2022, sets forth, the name and age of each executive officer of the Company, the office held, and the year first elected an officer.

The following table sets forth, as of February 15, 2023, the name and age of each executive officer of the Company, the office held, and the year first elected an officer.

Officer Name Age Position Year First

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Tanzberger joined the Company in August 1996 and held various management positions prior to being promoted to Corporate Controller in August 2002.

In 2022, his responsibilities were expanded to include information technology.

Before joining SCI, Mr.

Tanzberger began his financial career at Coopers and Lybrand LLP.

Tanzberger holds a Bachelor of Business Administration degree from the University of Notre

Tanzberger holds a Bachelor of Business Administration degree from the University of Notre Dame.

Tanzberger is currently a member of the Board of Directors and Chair of the Audit Committee of Sanara MedTech Inc.

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Sangalis joined the Company in 2007 as Senior Vice President, General Counsel and Secretary.

In 2012, his responsibilities were expanded to include Human Resources.

He previously served as Senior Vice President, Law and Administration for Team Inc., a leading provider of specialty industrial maintenance and construction services.

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He earned his juris doctorate from the University of Minnesota Law School.

Nash was named Senior Vice President of Operations Services in 2010 and is currently responsible for a variety of support functions, including information technology, supply chain, and program management.

Sangalis announced his intent to retire in March of 2023.

Nash was named Senior Vice President of Operations Services in 2010 and is currently responsible for a variety of support functions, including human resources, supply chain, and program management.

Prior to that she was Vice President of Process Improvement and Technology, where she led the redefinition of our field and home office processes and systems.

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She holds a bachelor's degree in business administration in accounting from Texas A&M University.

Nash serves as Chair of the Board of Directors of Genesys Works.

Nash serves as Chair of the Board of Directors of Genesys Works Houston.

Faulk was named Senior Vice President of Revenue and Business Development in 2018.

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Faulk worked for Bain & Company, Inc.

where he helped Fortune 500 Companies and specialty retailers identify profit growth opportunities and achieve strong operating results.

where he helped

Fortune 500 Companies and specialty retailers identify profit growth opportunities and achieve strong operating results.

He holds a master's degree in business administration from the Darden Graduate School of Business at the University of Virginia and a bachelor's degree in electrical engineering from the University of Virginia.

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Tidwell worked closely with Keystone's Senior Leadership Team to develop and implement organic growth strategies as well as external growth and acquisition strategies.

He began his career as a licensed funeral director and embalmer in Nashville, Tennessee, and has been actively involved in the funeral and cemetery profession for over thirty-seven years.

He began his career as a licensed funeral director and embalmer in Nashville, Tennessee, and has been actively involved in the funeral and cemetery profession for over forty years.

He holds an associate of arts degree from John A.

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She was promoted to Director of Financial Reporting in 2004 and Managing Director and Assistant Controller in June 2006.

In February 2010, she was promoted to Vice President and Corporate Controller and oversees trust accounting and compliance, general accounting, internal and external reporting, customer service, and strategic planning and analysis.

In February 2010, she was promoted to Vice President and Corporate Controller and oversees trust accounting and compliance, general accounting, internal and external reporting and customer service.

Prior to joining the Company, Mrs.

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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.

What changed 10-K

Item 1. Business