What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-02-12 compared with 2025-02-13 · 174 added, 199 removed, 1476 unchanged (20% of the section changed)

5 unchanged sentences

Consolidated Statement of Comprehensive Income for the years ended December 31, 202 5 , 202 4 , and 202 3

Consolidat ed Balance Sheet as of December 31, 202 4 and 202 3

Consolidated Balance Sheet as of December 31, 2025 and 2024

Consolidated Statement of Cash Flows for the years ended December 31, 2025, 2024, and 2023

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Financial Statement Schedule:

II — Val uation and Qualifying Accounts for the years ended December 31, 202 4 , 202 3 , and 202 2

II — Valuation and Qualifying Accounts for the years ended December 31, 2025, 2024, and 2023

All other schedules have been omitted because the required information is not applicable or is not present in amounts sufficient to require submission or because the information required is included in the consolidated financial statements or the related notes thereto.

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The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Goodwill Impairment Assessment - Funeral Reporting Unit

As described in Notes 2 and 4 to the consolidated financial statements, the Company’s consolidated goodwill balance was $2.1 billion as of December 31, 2024, and the goodwill associated with the funeral reporting unit was $1.7 billion.

Goodwill is tested annually during the fourth quarter, or whenever certain events or changes in circumstances indicate that the carrying value of goodwill may be greater than fair value.

In order to perform the goodwill impairment test, management compares the fair value of a reporting unit to its carrying amount, including goodwill.

Management determines fair value of a reporting unit using an income approach.

The income approach, which is a discounted cash flow method, uses projections of future cash flows and includes assumptions concerning future operating performance and economic conditions, such as revenue and other growth rates and a discount rate, that may differ from actual future cash flows.

The principal considerations for our determination that performing procedures relating to the goodwill impairment assessment of the funeral reporting unit is a critical audit matter are the significant judgment by management when developing the fair value measurement of the reporting unit under the income approach.

This in turn led to a high degree of auditor judgment, subjectivity, and effort in performing procedures and in evaluating management’s cash flow projections and significant assumptions related to revenue growth rates (over a six year period (“discrete years”) and terminal year) and ratio of expenses to revenue.

In addition, the audit effort involved the use of professionals with specialized skill and knowledge to assist in performing these procedures and evaluating the audit evidence obtained.

Revenue Recognition – Funeral and Cemetery Merchandise and Services and Cemetery Property Interment Rights

As described in Note 2 to the consolidated financial statements, for the year ended December 31, 2025, the Company earned $4.3 billion in consolidated revenue, of which the majority was derived from the delivery of funeral and cemetery merchandise and services, as well as cemetery property interment rights.

Revenue is recognized when control of the merchandise or services is transferred to the customer.

Control transfers when merchandise is delivered or services are performed.

For cemetery property interment rights, control transfers to the customer when the property is developed and the interment right has been sold and can no longer be marketed or sold to another customer.

Total consideration received for contracts with customers represents the stated amount of the contract excluding any amounts collected on behalf of third parties.

The total consideration received for contracts with customers is allocated to each performance obligation based on relative selling price.

Relative selling prices are determined by the amount the Company sells the performance obligation for on a stand-alone basis or their best estimate of the amount they would sell it for based on an adjusted market assessment approach that is consistent with their historical pricing practices.

The principal consideration for our determination that performing procedures relating to revenue recognition is a critical audit matter is a high degree of auditor effort in performing procedures related the Company’s revenue recognition.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.

These procedures included testing the effectiveness of controls relating to management’s goodwill impairment assessment of the funeral reporting unit, including controls over the valuation assertion.

These procedures also included, among others, testing management’s process for developing the fair value estimate;

evaluating the appropriateness of the discounted cash flow model;

testing the completeness, accuracy, and relevance of underlying data used in the model;

and evaluating the reasonableness of significant assumptions used by management related to the revenue growth rates (discrete years and terminal year) and ratio of expenses to revenue.

Evaluating management’s assumptions related to the revenue growth rates (discrete years and terminal year) and the ratio of expenses to revenue involved evaluating whether the assumptions used by management were reasonable considering (i) the current and past performance of the reporting unit, (ii) the consistency with forecasts per industry data, and (iii) whether these assumptions were consistent with evidence obtained in other areas of the audit.

Professionals with specialized skill and knowledge were used to assist in evaluating the Company’s discounted cash flow model and the terminal year revenue growth rate assumption.

These procedures included testing the effectiveness of controls relating to Company’s funeral and cemetery merchandise and services and cemetery property interment rights.

These procedures also included, among others, (i) testing, on a sample basis, revenue recognized by obtaining and inspecting source documents, such as contracts, proof of control transfer, and where applicable, cash receipts;

(ii) testing, on a sample basis, cemetery property interment rights revenue transactions recorded near year end to evaluate whether they were recorded in the appropriate period;

and (iii) testing the completeness of the contract listing provided by management.

/s/ PricewaterhouseCoopers LLP

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Restructuring charge ( 1,980 ) ( 11,470 ) —

(Losses) gains on divestitures and impairment charges, net ( 12,488 ) 9,816 9,962

Gains (loss) on divestitures and impairment charges, net 6,151 ( 12,488 ) 9,816

Operating income 978,087 927,680 944,255

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Inventories 35,246 33,318

Income tax receivable 3,775 122,183

Other 32,551 30,905

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Retained earnings 498,958 553,701

Accumulated other comprehensive (loss) income ( 7,221 ) 24,891

Accumulated other comprehensive income (loss) 12,425 ( 7,221 )

Total common stockholders’ equity 1,638,271 1,678,005

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Provision for deferred income taxes 41,017 7,541 191,516

Loss (gain) on divestitures and impairment charges, net 12,488 ( 9,816 ) ( 9,962 )

Gain on sale of investments — — ( 1,169 )

(Gain) loss on divestitures and impairment charges, net ( 6,151 ) 12,488 ( 9,816 )

Share-based compensation 17,633 18,783 17,043

Change in assets and liabilities, net of effects from acquisitions and divestitures:

(Increase) decrease in receivables ( 1,481 ) ( 3,810 ) 4,151

Decrease (increase) in other assets 65,043 ( 131,581 ) ( 8,206 )

Increase in receivables ( 9,723 ) ( 1,481 ) ( 3,810 )

(Increase) decrease in other assets ( 31,727 ) 65,043 ( 131,581 )

Increase (decrease) in payables and other liabilities 12,434 21,100 ( 11,296 )

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Real estate acquisitions ( 18,504 ) ( 62,061 ) ( 56,409 )

Corporate headquarters ( 69,898 ) ( 15,448 ) —

Proceeds from divestitures and sales of property and equipment 30,405 24,403 25,888

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Proceeds from exercise of stock options 29,401 56,683 24,181

Proceeds from corporate headquarters debt facility 54,766 — —

Purchase of Company common stock ( 461,015 ) ( 253,733 ) ( 544,844 )

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Effect of foreign currency 5,281 ( 7,684 ) 1,722

Net (decrease) increase in cash, cash equivalents, and restricted cash ( 3,362 ) 20,237 ( 74,031 )

Net increase (decrease) in cash, cash equivalents, and restricted cash 25,069 ( 3,362 ) 20,237

Cash, cash equivalents, and restricted cash at beginning of period 221,399 224,761 204,524

16 unchanged sentences

— — — (167,983) — — ( 167,983 )

Employee share-based compensation earned — — 14,709 — — — 14,709

Share-based compensation earned 24 — 17,019 — — — 17,043

Stock option exercises 927 — 23,254 — — — 24,181

8 unchanged sentences

— — — (174,282) — — ( 174,282 )

Employee share-based compensation earned — — 15,423 — — — 15,423

Share-based compensation earned 25 — 18,758 — — — 18,783

Stock option exercises 1,646 — 55,037 — — — 56,683

8 unchanged sentences

— — — (183,571) — — ( 183,571 )

Employee share-based compensation earned — — 17,163 — — — 17,163

Share-based compensation earned 23 — 17,610 — — — 17,633

Stock option exercises 704 — 28,697 — — — 29,401

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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, cremation niches, and other cremation memorialization and interment options.

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

Our cemeteries provide cemetery property interment rights, including developed lots, lawn crypts, mausoleum spaces, cremation niches, and custom inventory, including private mausoleums, family estates, and exclusive cremation memorialization options.

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.

Summary of Significant Accounting Policies

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therefore, their interests in these trusts represent a liability to us.

Certain reclassifications have been made to prior period amounts to conform to the current period disclosure presentation with no effect on our consolidated net income or cash flows.

Certain reclassifications have been made to prior period amounts to conform to the current period disclosure presentation with no effect on our consolidated net income, cash flows, or equity.

Use of Estimates in the Preparation of Financial Statements

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The following table summarizes the activity in our reserve for credit losses by portfolio segment, excluding preneed receivables which are presented in Note 3 , for the year ended December 31, 2025:

December 31, 2023 Provision for Expected Credit Losses (Acquisitions)

Divestitures, net Write

December 31, 2024 Provision for Expected Credit Losses Write

Offs Recoveries Effect of Foreign Currency December 31, 2025

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Total reserve for credit losses on miscellaneous receivables $ ( 891 ) $ 178 $ — $ — $ 35 $ ( 678 )

Notes receivable $ ( 1,934 ) $ 24 $ — $ — $ — $ — $ ( 1,910 )

Reserve for credit losses on notes receivable $ ( 1,910 ) $ ( 150 ) $ — $ — $ ( 1 ) $ ( 2,061 )

At December 31, 2025, the amortized cost basis of our miscellaneous and notes receivables by year of origination was as follows:

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When property or equipment is sold or retired, the cost and related accumulated depreciation are removed from the Consolidated Balance Sheet and the resulting gains and losses are included in the Consolidated Statement of Operations in the period of sale or disposal.

We have operating and finance leases.

We have both operating and finance leases.

Our operating leases primarily include funeral service real estate and office equipment for funeral service locations, cemetery locations, and administrative offices.

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The excess of purchase price over the fair value of identifiable net assets acquired in business combinations is recorded as goodwill.

Goodwill is tested annually during the fourth quarter for impairment by assessing the fair value of each of our reporting units.

Goodwill is evaluated annually during the fourth quarter for impairment by assessing the fair value of each of our reporting units.

Our goodwill impairment test involves estimates and management judgment.

In order to perform our goodwill impairment test, we compare the fair value of a reporting unit to its carrying amount, including goodwill.

In order to perform our goodwill impairment test, we perform either a qualitative or quantitative assessment.

If we choose to perform a qualitative assessment, we evaluate economic, industry and company-specific factors in assessing the fair value of the related reporting unit.

If we determine that it is more likely than not that the fair value of the reporting unit is less that its carrying value, a quantitative test is then performed.

For those reporting units tested using a quantitative approach, we compare the fair value of a reporting unit to its carrying amount, including goodwill.

We determine fair value of each reporting unit using an income approach.

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If the carrying amount exceeds the fair value of a reporting unit, an impairment is recognized in an amount equal to the excess, up to the amount of goodwill in the reporting unit.

For our most recent annual impairment test performed in the fourth quarter, we used a 7.50 % discount rate, revenue growth rates averaging 2.8 % over a six-year period, plus a terminal value determined using the constant growth method in projecting our future cash flows.

Our terminal value was calculated using a long-term revenue growth rate of 2.0 % and 2.5 % for our funeral and cemetery reporting units, respectively.

Additionally, we used a ratio of expenses to revenue averaging 73.0 % and growth rates for other assumptions in line with revenue growth rate assumptions.

Fair value was calculated as the sum of the projected discounted cash flows of our reporting units over the next six years plus terminal value at the end of those six years.

For our most recent annual impairment test performed in the fourth quarter, we performed a qualitative analysis for each of our reporting units.

After evaluating economic, industry and company-specific factors for each of our reporting units, we determined it was more likely than not that the fair values of our reporting units exceeded their carrying values.

Thus, no quantitative assessment was required.

In addition to our annual review, we may assess the impairment of goodwill whenever certain events or changes in circumstances indicate that the carrying value may be greater than fair value.

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We also assumed a terminal growth rate of 2.0 % and 2.5 % for our funeral and cemetery segments, respectively, and discounted the cash flows at a 7.75 % discount rate based on the relative risk of these assets to our overall business.

In addition to our annual review, we may assess the impairment of intangible assets whenever certain events or changes in circumstances indicate that the carrying value may be greater than the fair value.

Factors that could trigger an interim

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impairment review include, but are not limited to, significant under-performance relative to historical or projected future operating results and significant negative industry or economic trends.

Factors that could trigger an interim impairment review include, but are not limited to, significant under-performance relative to historical or projected future operating results and significant negative industry or economic trends.

Certain of our intangible assets associated with prior acquisitions are relieved using specific identification in fulfillment of performance obligations on our contracts with customers.

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Revenue associated with sales of preneed contracts is deferred until control of the merchandise or the services is transferred to the customer, which is upon delivery of the merchandise or as services are performed, generally at the time of need.

On certain preneed contracts, we sell memorialization merchandise, which consists of urns and urn-related products, that we deliver to the customer at the time of sale.

Revenue is recognized at the time of delivery when control of the memorialization merchandise is transferred.

On certain preneed contracts, we historically sold memorialization merchandise, which consists of urns and urn-related products, that we delivered to the customer at the time of sale.

In 2024, we began a transition and operational shift to defer the delivery of urns on preneed contracts to the time of need.

Revenue is recognized at the time of delivery as control of the memorialization merchandise is transferred to the customer.

For personalized marker merchandise sold on a preneed contract, we will:

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• transfer title to the customer.

We recognize revenue and record the cost of sales when control is transferred for the merchandise, which occurs upon delivery to the third-party storage facility or installation of the merchandise at the cemetery.

We recognize revenue and record the cost of sales when control of the merchandise is transferred, which occurs upon delivery to the third-party storage facility or installation of the merchandise at the cemetery.

There is no general right of return for delivered items.

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This portion of the proceeds is not recognized as revenue.

Fixed income securities held by these trust funds are classified as trading securities.

Investment earnings from these trusts

54 Service Corporation International

are distributed to us regularly and recognized in current cemetery revenue.

Fixed income securities held by these trust funds are classified as trading securities.

Investment earnings from these trusts are distributed to us regularly and recognized in current cemetery revenue.

These distributions are intended to defray cemetery maintenance costs incurred by us for our cemetery properties, which are expensed as incurred.

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The components of Cost of revenue in our Consolidated Statement of Operations are:

• Cost of property and merchandise , which includes cemetery property amortization, the direct cost of merchandise, labor-related costs for merchandise handling and delivery, cemetery maintenance expenses and depreciation, and selling costs;

• Cost of services , which includes the direct cost of providing the services (including labor-related costs), cemetery maintenance expenses and depreciation, vehicle operating costs and depreciation, and selling costs;

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Restructuring Charge

During the fourth quarter of 2024, we recognized a restructuring charge of $11.5 million, which included the retirements and position eliminations of various home office and corporate positions as part of ongoing cost management.

We paid $2.3 million of the recognized charge during the fourth quarter.

In 2025, we recognized a restructuring charge of $2.0 million, primarily due to professional fees incurred in connection with the implementation and completion of restructuring actions.

We paid $21.6 million of deferred compensation arrangements primarily associated with retired executives and other restructuring related charges during 2025.

The restructuring charge is presented separately on our Consolidated Statement of Operations.

Recently Issued Accounting Standards

In November 2023, the FASB amended the reportable segment guidance by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss.

This new guidance also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources.

We adopted the standard effective December 31, 2024 and applied the disclosure requirements retrospectively to all prior periods presented in the financial statements.

In 2024, we recognized a restructuring charge of $11.5 million, which included the retirements and position eliminations of various home office and corporate positions as part of ongoing cost management.

We paid $2.3 million of the recognized charge during 2024.

The restructuring charge is presented separately on our Consolidated Statement of Operations.

Accounting Standards Adopted in 2025

In December 2023, the FASB amended guidance that requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid.

The new guidance is effective on a prospective basis for annual periods beginning after December 15, 2024 and early adoption is also permitted.

Upon adoption, we will include the additional disclosures in our financial statements and related notes, however the guidance will not have a material effect on our financial position or results of operations.

The Company adopted the new guidance for the year ended December 31, 2025 and applied the disclosure requirements retrospectively to all prior periods presented in the financial statements.

Recently Issued Accounting Standards

Disaggregation of Income Statement Expenses

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Internal-Use Software

In September 2025, the FASB issued guidance to modernize the accounting for software costs that are accounted for under Subtopic 350-40, Intangibles-Goodwill and Other-Internal-Use Software.

The new guidance is effective for us for the 2028 annual period, with early adoption permitted, and it can be adopted either on a prospective, modified or retrospective basis.

We are currently assessing the impact of this guidance on our disclosures, and upon adoption, we will include the required disclosures in our financial statements and related notes.

Preneed Activities

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$ 473,574 $ 512,382

As part of our recoverability testing process during 2024, we reported $3.7 million of impairment on tradenames.

As part of our recoverability testing process during 2025, we incurred an impairment on tradenames of $2.0 million.

Amortization expense for intangible assets was $ 16.4 million, $ 17.2 million, and $ 18.7 million for the years ended December 31, 2025, 2024, and 2023, respectively.

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federal income taxes (determined on a consolidated return basis), foreign income taxes, and state income taxes.

We actively participate in tax credit equity investments for projects eligible to receive renewable energy credits.

These investments, accounted for under the equity method, are recorded in Deferred charges and other assets, net of reserves on our Consolidated Balance Sheet.

Upon realization, tax credits associated with these investments are recognized as a reduction of tax expense.

This reduction is offset by amortization of the investment in proportion to the tax benefits received during the period under the proportional amortization method.

During 2024, we recognized investment tax credits totaling $ 7.4 million and $3.1 million in other tax benefits primarily from depreciation.

As a result, the equity investment was amortized by $ 10.0 million to reflect the realization of these benefits.

This amortization is reflected within the Provision for income taxes in the Consolidated Statement of Operations.

We participate in tax equity investments in renewable energy projects that qualify for federal investment tax credits.

These investments are accounted for under the proportional amortization method.

Tax credits and other related tax benefits are recognized as a reduction of income tax expense as they are realized, with corresponding amortization of the investment in proportion to the tax benefits received.

During 2025, we recognized $ 5.3 million of investment tax credits and other tax benefits and recorded $ 5.2 million of amortization related to these investments.

The tax credits and related amortization are presented net within the Provision for income taxes in the Consolidated Statement of Operations.

As of December 31, 2025, the unamortized balance of renewable energy tax credit investments was $ 51.1 million, and unfunded commitments related to these investments totaled $ 40.8 million.

These amounts are included in Deferred charges and other assets and Accounts payable and accrued liabilities , respectively, on the Consolidated Balance Sheet.

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Total income taxes $ 186,938 $ 156,665 $ 170,945

We made income tax payments of $ 23.7 million, $ 85.5 million, and $ 183.7 million in 2024, 2023, and 2022, respectively, and received refunds of $ 2.8 million, $ 1.7 million, and $ 4.2 million, respectively.

The differences between the U.S.

federal statutory income tax rate and our effective tax rate were as follows:

Years Ended December 31,

In December 2023, the FASB amended income tax disclosure guidance to require enhanced transparency in the effective tax rate reconciliation and additional disclosures related to income taxes paid.

We adopted this guidance for the year ended December 31, 2025 and applied the disclosure requirements retrospectively to all prior periods presented.

The table below reflects those disclosures for the years ended December 31, 2025, 2024 and 2023.

Year Ended December 31,

2025 2024 2023

(In thousands)

Computed tax provision at the applicable federal statutory income tax rate $ 141,838 $ 148,807 $ 158,682

State and local taxes, net of federal income tax benefits 21,587 27,041 28,817

Foreign jurisdiction differences 3,509 3,756 3,976

Permanent differences associated with divestitures 365 47 200

Changes in uncertain tax positions and audit settlements ( 1,083 ) 110 53

Excess tax benefit from share-based compensation ( 11,924 ) ( 8,406 ) ( 8,918 )

Amount Rate Amount Rate Amount Rate

Federal Statutory Tax Rate 153,255 21.0 % 141,838 21.0 % 148,807 21.0 %

State and Local Income Taxes, net of federal tax effect (1)

27,298 3.7 % 20,224 3.0 % 26,047 3.7 %

Foreign Tax Effects 3,501 0.5 % 3,651 0.5 % 4,156 0.5 %

Tax Credits ( 737 ) ( 0.1 ) % 178 — % ( 1,001 ) ( 0.1 ) %

Nontaxable or Nondeductible Items 4,019 0.6 % ( 8,126 ) ( 1.2 ) % ( 6,991 ) ( 1.0 ) %

Excess tax benefits from stock-based compensation ( 1,060 ) ( 0.1 ) % ( 10,561 ) ( 1.6 ) % ( 7,412 ) ( 1.0 ) %

Other 5,079 0.7 % 2,435 0.4 % 421 — %

Provision for income taxes $ 156,665 $ 170,945 $ 189,594

Total consolidated effective tax rate 23.2 % 24.1 % 25.1 %

The 2024 consolidated effective tax rate was 23.2 %, compared to 24.1 % in 2023.

The lower effective tax rate in 2024 was primarily due to an increase in excess tax benefit recognized on the settlement of employee share-based awards.

Changes in Unrecognized Tax Benefits ( 551 ) ( 0.1 ) % $ ( 1,084 ) ( 0.1 ) % 110 — %

Other Adjustments 153 — % ( 16 ) — % ( 183 ) — %

Effective Tax Rate $ 186,938 25.6 % $ 156,665 23.2 % $ 170,945 24.1 %

(1) In 2025, state tax in California, Maryland, and Illinois comprise the majority of the tax effect in this category.

In 2024, state tax in California, Texas, and Illinois comprise the majority of the tax effect in this category.

In 2023, state tax in California and Texas comprise the majority of the tax effect in this category.

The higher effective tax rate in 2025 was primarily due to a de crease in excess tax benefits recognized on the settlement of employee share-based awards .

The effective tax rate for the year ended December 31, 2025 was higher than the federal statutory tax rate of 21% primarily due to state and foreign income taxes.

The table below presents the income taxes paid, net of refunds received, by jurisdiction for the years ended December 31, 2025, 2024 and 2023.

Year Ended December 31,

2025 2024 2023

(In thousands)

US Federal $ 95,956 $ — $ 57,000

US State and Local:

California (1)

All Others 15,875 8,417 9,606

Total US Domestic $ 29,260 $ 8,417 $ 9,606

Canada 13,528 10,975 14,399

All Others 1,321 1,428 2,724

Total Foreign $ 14,849 $ 12,403 $ 17,123

Total Income Tax Paid $ 140,065 $ 20,820 $ 83,729

(1) The blank cells indicate that the amount of income tax paid during the year is either immaterial or does not meet the 5% disaggregation threshold.

Deferred taxes are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates.

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federal income tax of approximately $ 7.7 million related to our hybrid debt structure between Canada and the United States that was eliminated in 2022.

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The following table summarizes the activity related to our gross unrecognized tax benefits from January 1, 2023 to December 31, 2025 (in thousands):

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Balance at December 31, 2023 $ 1,348

Reductions to tax positions related to prior years —

Balance at December 31, 2023 $ 1,348

Reductions to tax positions due to lapse of statutes of limitations ( 1,348 )

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Balance at December 31, 2024 $ 834

Reductions to tax positions due to lapse of statutes of limitations ( 400 )

Balance at December 31, 2025 $ 434

Our total unrecognized tax benefits that, if recognized, would affect our effective tax rates were $ 0.4 million, $ 0.8 million and $ 1.3 million as of December 31, 2025, 2024 and 2023, respectively.

62 Service Corporation International

We include potential accrued interest and penalties related to unrecognized tax benefits within our income tax provision account.

We have accrued $ 0.3 million, $ 0.4 million and $ 1.0 million for the payment of interest, net of tax benefits, and penalties as of December 31, 2025, 2024 and 2023, respectively.

We recorded a decrease of interest and penalties of $ 0.6 million and an increase of $ 0.1 million and $ 0.1 million for years ended December 31, 2024, 2023 and 2022, respectively.

We recorded a decrease of interest and penalties of $ 0.1 million, $ 0.6 million and an increase of $ 0.1 million for years ended December 31, 2025, 2024 and 2023, respectively.

To the extent interest and penalties are not assessed with respect to uncertain tax positions or the uncertainty of deductions in the future, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision.

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however, all tax returns are subject to routine compliance review by the taxing authorities in the jurisdictions in which we file tax returns in the ordinary course of business.

The federal statutes of limitations have expired for all tax years prior to 2021, and we are not currently under audit by the IRS.

The federal statutes of limitations have expired for all tax years prior to 2022.

Our 2022 federal income tax return is currently under audit by the IRS.

Various state and foreign jurisdictions are auditing years 2020 through 2023.

We believe that it is reasonably possible that the recorded amount of gross unrecognized tax benefits may decrease by $ 0.4 million within the next twelve months as a result of the resolution of certain state tax matters.

The outcome of each of these audits cannot be predicted at this time.

Following the enactment of the new U.S.

tax legislation, Public Law No.

119-21, on July 4, 2025, we adopted the relevant provisions during the third quarter of 2025, including those pertaining to bonus depreciation and interest expense.

Consistent with our expectations, the adoption of these provisions did not have a material effect on our consolidated financial statements.

Various subsidiaries have federal, state, and foreign loss carryforwards totaling $ 2.2 billion with expiration dates ranging through 2043.

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Total loss carryforwards $ — $ 2,207,627 $ 4,889 $ 2,212,516

In addition to the above loss carryforwards, we have $2.2 million of foreign alternative minimum tax credits that can be carried forward indefinitely.

In addition to the above loss carryforwards, we have $1.0 million of federal net operating loss carryforwards and $2.1 million of foreign alternative minimum tax credits, both of which can be carried forward indefinitely.

In assessing the usefulness of deferred tax assets, we consider whether it is more likely than not that some portion or all of the net deferred tax assets will not be realized.

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The valuation allowances can be affected in future periods by changes to tax laws, changes to statutory tax rates, and changes in estimates of future taxable income .

At December 31, 2024, our loss and tax credit carryforward deferred tax assets and related valuation allowances by jurisdiction are as follows (presented net of federal benefit).

At December 31, 2025, our loss and tax credit carryforward deferred tax assets and valuation allowances by jurisdiction are as follows (presented net of federal benefit).

Federal State Foreign Total

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Term Loan due January 2028 — 641,250

Term Loan due November 2030 750,000 —

Bank Credit Facility due January 2028 — 120,000

Bank Credit Facility due November 2030 255,000 —

Corporate Headquarters Debt Facility due February 2037 54,766 —

Obligations under finance leases 151,061 145,061

11 unchanged sentences

Total Debt 4.85 % 4.93 %

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The following table summarizes the aggregate maturities of our debt for the five years subsequent to December 31, 2025 and thereafter, excluding unamortized premiums and debt issuance costs (in thousands):

2026 $ 56,847

2030 1,790,101

2031 and thereafter 1,687,357

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Bank Credit Agreement

In November 2025, we amended our $2.2 billion credit agreement due January 2028 to enter into a new $2.5 billion bank credit agreement due November 2030 with a syndicate of banks.

The $2.5 billion bank credit agreement comprises a $ 1.75 billion Bank Credit Facility, including a sublimit of $100.0 million for letters of credit and a $ 750.0 million Term Loan, both due November 2030.

At closing of the new agreement, there was a net $121.4 million increase in our outstanding Term Loan balance and a net $115.0 million decrease in our outstanding Bank Credit Facility balance.

The bank credit agreement provides us with flexibility for working capital, if needed, and is guaranteed by a majority of our domestic subsidiaries.

5 unchanged sentences

As of December 31, 2024, we issued $ 39.0 million of letters of credit.

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Building Financing

In August 2024, we entered into a new $ 129.9 million construction loan agreement due 2037 with a syndicate of banks.

The purpose of this loan is to provide financing for a new corporate headquarters building.

This transaction resulted in additional debt issuance costs of $ 1.1 million.

As of December 31, 2024, we had no borrowing outstanding.

Debt Issuances and Additions

During the year ended December 31, 2025, we issued or added $ 1,115.6 million of debt including:

• $ 800.0 million unsecured 5.75% Senior Notes due October 2032;

• $685.0 million on our Bank Credit Facility due January 2028;

• $ 6.1 million in other debt.

Net proceeds from newly issued debt during the year ended December 31, 2024 were used to pay down our Bank Credit Facility due January 2028 and for general corporate purposes.

• $189.5 million in proceeds from certain members of the syndicate of banks in our Term Loan;

• $180.0 million on our Bank Credit Facility due November 2030;

• $54.8 million on our Corporate Headquarters Debt Facility due February 2037;

• $6.3 million in proceeds from certain members of the syndicate of banks in our Bank Credit Facility.

Net proceeds from newly issued debt during the year ended December 31, 2025 were used to pay down our Bank Credit Facility due January 2028, Term Loan due January 2028 and for general corporate purposes.

These transactions resulted in additional debt issuance costs of $ 5.4 million.

During the year ended December 31, 2024, we issued or added $ 1,451.1 million of debt including:

• $ 284.1 million from certain banks in our Term Loan;

• $800.0 million unsecured 5.75% Senior Notes due October 2032;

• $ 645.0 million on our Bank Credit Facility due January 2028;

• $ 44.3 million from certain banks in our Bank Credit Facility;

• $ 10.0 million on our Bank Credit Facility due May 2024;

• $ 6.1 million in other debt.

Net proceeds from newly issued debt during the year ended December 31, 2023 were used to pay down our Bank Credit Facility due May 2024, our Term Loan due May 2024, and for general corporate purposes.

Net proceeds from newly issued debt during the year ended December 31, 2024 were used to pay down our Bank Credit Facility due January 2028 and for general corporate purposes.

These transactions resulted in additional debt issuance costs of $ 14.3 million.

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• $ 575.0 million in aggregate principal of our Bank Credit Facility due January 2028;

• $121.3 million in aggregate principal to certain members of our Bank Credit Facility;

• $68.1 million in aggregate principal to certain members of our Term Loan;

• $40.0 million in aggregate principal of our Bank Credit Facility due November 2030;

• $ 12.7 million in aggregate principal of our Term Loan due January 2028;

• $ 0.5 million in aggregate principal of our 7.5% Senior Notes due April 2027 repurchased in the open market;

• $0.1 million of premiums paid on early extinguishment of debt;

• $ 8.6 million in other debt.

Certain of the above transactions resulted in the recognition of a loss of $0.5 million recorded in Losses on early extinguishment of debt, net in our Consolidated Statement of Operations for the year ended December 31, 2025.

During the year ended December 31, 2024, we made aggregate debt payments of $ 1,340.0 million for scheduled and early extinguishment payments including:

• $ 1,315.0 million in aggregate principal of our Bank Credit Facility due January 2028;

• $ 199.3 million in aggregate principal to certain banks in our Bank Credit Facility due May 2024;

• $ 145.3 million in aggregate principal to certain banks in our Term Loan due May 2024;

• $ 16.9 million in aggregate principal of our Term Loan due January 2028;

• $ 0.5 million in aggregate principal of our 7.5% Senior Notes due April 2027 repurchased in the open market;

• $ 0.5 million of premiums paid on early extinguishment;

• $ 7.6 million in other debt.

Certain of the above transactions resulted in the recognition of a loss of $ 1.1 million recorded in Losses on early extinguishment of debt, net in our Consolidated Statement of Operations for the year ended December 31, 2023.

Additional Debt Disclosures

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The carrying values of cash and cash equivalents, trade receivables, and trade payables approximate the fair values of those instruments due to the short-term nature of the instruments.

The carrying values of receivables on preneed funeral and cemetery contracts approximate fair value due to the diverse number of individual contracts with varying terms.

The carrying values of receivables on preneed funeral and cemetery contracts approximate fair value as the terms and conditions of these contracts are comparable to our current contract offerings.

68 Service Corporation International

The fair value of our debt instruments was as follows:

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(In thousands)

7.500% Notes due April 2027 $ 140,615 $ 142,749

7.500% Senior Notes due April 2027 $ 141,725 $ 140,615

4.625% Senior Notes due December 2027 549,417 536,052

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Term Loan due January 2028 — 641,250

Term Loan due November 2030 750,000 —

Bank Credit Facility due January 2028 — 120,000

Bank Credit Facility due November 2030 255,000 —

Corporate Headquarters Debt Facility due February 2037 54,766 —

Mortgage notes and other debt, maturities through 2050 80,762 85,574

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The fair values of our long-term, fixed rate loans were estimated using market prices for those loans, and therefore they are classified within Level 2 of the fair value measurements hierarchy.

The Term Loan, the revolving credit facility agreement, and the mortgage notes and other debt are classified within Level 3 of the fair value measurements hierarchy.

The Term Loan, Bank Credit Facility, Corporate Headquarters Debt Facility, and the mortgage notes and other debt are classified within Level 3 of the fair value measurements hierarchy.

The fair values of these instruments have been estimated using discounted cash flow analysis based on our incremental borrowing rate for similar borrowing arrangements.

An increase (decrease) in the inputs results in a directionally opposite change in the fair value of the instruments.

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Credit Risk Exposure

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(1) Right-of-use assets are presented net of accumulated amortization.

70 Service Corporation International

The weighted-average life remaining and discount rates of our leases were as follows:

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Non-lease components are excluded from rental income disclosures.

68 Service Corporation International

Future undiscounted lease income from operating leases where we are the lessor were as follows as of December 31, 2025 (in thousands):

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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, 2024 and 2023, and $ 0.7 million for the year ended December 31, 2022.

As of December 31, 2024, our Consolidated Balance Sheet includes land of $ 31.9 million, and buildings and improvements of $ 9.7 million, net of $ 2.4 million accumulated depreciation, related to these properties.

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.

Commitments and Contingencies

Insurance Loss Reserves

We purchase comprehensive general liability, morticians and cemetery professional liability, automobile liability, and workers’ compensation insurance coverage structured with high deductibles.

We purchase various insurance products with high deductibles including:

comprehensive general liability, morticians and cemetery professional liability, automobile liability, and workers’ compensation.

The high-deductible insurance program means we are primarily self-insured for claims and associated costs and losses covered by these policies.

As of December 31, 2024 and 2023, we have self-insurance reserves of $ 105.8 million and $ 103.3 million, respectively.

As of December 31, 2025 and 2024, we had self-insurance reserves of $ 108.4 million and $ 105.8 million, respectively.

Litigation and Regulatory Matters

We are a party to various litigation and regulatory matters, investigations, and proceedings.

Some of the more frequent routine litigations incidental to our business are based on burial practices claims and employment-related matters, including discrimination, harassment, and wage and hour laws and regulations.

Some of the more frequent routine litigations incidental to our business are based on operational claims and employment-related matters, including discrimination, harassment, and wage and hour laws and regulations.

For each of our outstanding legal matters, we evaluate the merits of the case, our exposure to the matter, possible legal or settlement strategies, and the likelihood of an unfavorable outcome.

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We accrue such insurance recoveries when they become probable of being paid and can be reasonably estimated.

Operational Claims .

We are named as a defendant in various lawsuits alleging operational claims, including but not limited to the State of California lawsuit described below.

The People of the State of California v.

Service Corporation International, a Texas corporation, SCI Direct, Inc.

a Florida Corporation, S.E.

Acquisition of California, Inc., a California corporation dba Neptune Society of Northern California, Neptune Management Corp., a California corporation, Trident Society, Inc.

a California corporation, and Does 1 through 100, inclusive, Case No.

in the Superior Court of the State of California in and for the County of Alameda.

In July 2019, we received a letter from the Attorney General, State of California, Department of Justice (“CAAG") alleging that the allocation of prices among certain of our cremation service contracts and cremation merchandise contracts, and the related preneed trust funding, violates section 7735 of the California Business and Professions Code and that provisions of these same contracts constitute false advertising and deceptive sales practices in violation of California consumer protection laws.

On November 21, 2019, we filed a complaint, S.E.

Combined Services of California, Inc., a California Corporation dba Neptune Society of Northern California, Neptune Management Corp.

a California Corporation, and Trident Society, Inc.

Xavier Becerra, Attorney General of the State of California, and Does 1-50, Case No.

34-2019-00269617;

in the Sacramento County Superior Court seeking declaratory relief holding, in general, that our practices, methods, and documentation utilized in the sale of preneed funeral goods and services are in all respects compliant with California law.

On December 2, 2019, the CAAG filed the complaint, referenced above, seeking permanent injunction from making false statements and engaging in unfair competition, a placement of funds into preneed trusts, civil penalties, customer refunds, attorneys’ fees, and costs.

The parties have reached a settlement of the lawsuit that includes civil penalties of $23 million and provides certain preneed contract consumers the right to receive refunds.

The court approved the settlement and the civil penalties have been paid.

The claims period closed on October 7, 2024, and although some customers may still request refunds beyond that date, we maintain a reserve that we believe is sufficient to cover all costs related to future refunds.

The settlement represents a compromise of contested claims and does not contain any admission of wrongdoing or fault on the part of the Company, its board of directors or executive officers in the action settlement.

We consider this litigation concluded.

Unclaimed Property Audits

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The states claim that these Unused Preneed Trust Funds are subject to the states’ unclaimed property or escheatment laws and generally assert that all or a portion of the Unused Preneed Trust Funds are escheatable if the beneficiary and/or purchaser is deceased or presumed deceased and no services or merchandise have been provided.

We received notice that no additional property is due to be reported for the states of Alabama, Connecticut, Iowa, Kentucky, Maryland, Massachusetts, Montana, Nebraska, New Mexico, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, West Virginia, and Wyoming.

We consider the unclaimed property audits resolved in those eighteen states.

We received notice that no additional property is due to be reported for the states of Alabama, Connecticut, Iowa, Kentucky, Maryland, Massachusetts, Montana, Nebraska, Nevada, New Mexico, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, West Virginia, and Wyoming.

We consider the unclaimed property audits resolved in those nineteen states.

We have entered into an audit resolution agreement with the State of Florida Department of Financial Services and Division of Unclaimed Property ("Florida Agreement").

The Florida Agreement provides for the Company to retain the trust fund earnings and to escheat the principal to the State of Florida, which resulted in an increase in trust fund income in 2023 and 2024.

The Florida Agreement provides for us to retain the trust fund earnings and to escheat the principal to the State of Florida, which resulted in an increase in trust fund income in 2023, 2024 and 2025.

We have reserved all of our rights, claims, and defenses.

Given the nature of these matters, we are unable to reasonably estimate the total possible loss or ranges of loss, if any.

We believe we have strong defenses to these claims and we intend to vigorously defend all of the above matters;

however, an adverse decision in one or more of such matters could have a material effect on us, our financial condition, results of operations, and cash flows.

(All shares reported in whole numbers)

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In 2024, we repurchased 3,439,551 shares of our common stock at an aggregate cost of $ 249.8 million, which is an average cost per share of $ 72.63 .

In November 2023, our Board of Directors increased our share repurchase authorization to $ 600.0 million.

In May 2025, our Board of Directors increased our share repurchase authorization to $ 600.0 million.

After these repurchases and the increase in authorization, the remaining dollar value of shares authorized to be purchased under the share repurchase program was $ 356.7 million at December 31, 2025.

Subsequent to December 31, 2025, we repurchased 552,313 shares for $ 44.4 million at an average cost per share of $ 80.48 .

72 Service Corporation International

Share-Based Compensation

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Restricted shares are generally expensed ratably over the period during which the restrictions lapse, which is typically 33 1 / 3 % each year.

At December 31, 2024 and 2023,

70 Service Corporation International

2,821,617 and 3,470,575 shares, respectively, were reserved for future option and restricted share grants under our stock benefit plans.

At December 31, 2025 and 2024, 2,255,668 and 2,821,617 shares, respectively, were reserved for future option and restricted share grants under our stock benefit plans.

We utilize the Black-Scholes option valuation model for estimating the fair value of our stock options.

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(In thousands)

Total pretax employee share-based compensation expense included in net income $ 17,163 $ 15,423 $ 14,709

Pretax employee share-based compensation expense included in net income $ 15,923 $ 17,163 $ 15,423

Pretax director share-based compensation expense included in net income $ 1,710 $ 1,620 $ 1,620

Total pretax share-based compensation expense included in net income $ 17,633 $ 18,783 $ 17,043

Income tax benefit related to share-based compensation included in net income $ 4,459 $ 4,358 $ 4,224

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$75.01 — 85.00 327,963 7.1 $ 78.57 — $ —

$0.00 — 85.00 3,267,063 3.8 $ 57.99 2,589,716 $ 53.75

Other information pertaining to stock options was as follows (in thousands, except weighted-average grant date fair value):

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At December 31, 2025, unrecognized compensation expense of $ 7.7 million related to restricted share awards is expected to be recognized over a weighted average period of 1.8 years.

74 Service Corporation International

Restricted share units activity was as follows (share units reported in whole numbers):

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102,785 $ 74.41

72 Service Corporation International

Other information pertaining to restricted share units was as follows (in thousands, except weighted-average grant date fair value):

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The retirement benefits under the Plans are unfunded obligations of the Company.

We have purchased various life insurance policies on the participants in the Plans with the intent to use the proceeds or any cash value buildup from these policies to assist in meeting, at least to the extent of such assets, the Plans' funding requirements.

We have purchased various life insurance policies on certain participants in the Plans with the intent to use the proceeds or any cash value buildup from these policies to assist in meeting, at least to the extent of such assets, the Plans' funding requirements.

The face value of these insurance policies at December 31, 2025 and 2024 was $ 37.7 million and $ 37.1 million, respectively, and the cash surrender value was $ 30.8 million and $ 30.1 million, respectively.

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Restructuring charge ( 1,980 ) ( 11,470 ) —

(Losses) gains on divestitures and impairment charges, net ( 12,488 ) 9,816 9,962

Gains (loss) on divestitures and impairment charges, net 6,151 ( 12,488 ) 9,816

Operating income 978,087 927,680 944,255

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Operating income $ 924,706 $ 53,381 $ 978,087

(Loss) gain on divestitures and impairment charges, net $ ( 13,471 ) $ 983 $ ( 12,488 )

Gain on divestitures and impairment charges, net $ 6,046 $ 105 $ 6,151

Long-lived assets $ 8,122,372 $ 360,941 $ 8,483,313

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Operating income $ 871,760 $ 55,920 $ 927,680

Gain on divestitures and impairment charges, net $ 8,512 $ 1,304 $ 9,816

(Loss) gain on divestitures and impairment charges, net $ ( 13,471 ) $ 983 $ ( 12,488 )

Long-lived assets $ 7,786,598 $ 322,146 $ 8,108,744

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Other current assets:

Income tax receivable $ 4,999 $ 3,775

Prepaid insurance 4,536 4,824

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Net change in capital expenditure accrual $ ( 6,650 ) $ 2,185 $ 9,171

Options exercised by attestation $ — $ — $ 280

Shares repurchased $ — $ — $ ( 280 )

Excise tax accrual on shares repurchased $ 4,279 $ 754 $ 4,724

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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 $ 1.7 million of cash acquired in 2024.

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 2024, we acquired 26 funeral homes and 6 cemeteries.

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.

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• 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 in the third quarter (in thousands):

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

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Preneed receivables, net and trust investments 41,018

Indefinite-lived intangible assets 24,316

Deferred charges and other assets 340

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Long-term debt 15,431

Deferred tax liability 3,003

Care trusts' corpus 9,223

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Net assets acquired $ 120,647

The purchase accounting is preliminary as we have not finalized our assessment of the fair value because there has been insufficient time between the acquisition date and the issuance of these financial statements to complete our review and final determination of fair value.

Goodwill, land, and certain identifiable intangible assets recorded in the acquisitions are not subject to amortization;

however, the goodwill and intangible assets will be tested periodically for impairment.

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.

The identified intangible assets are comprised of tradenames.

We incurred acquisition costs of $ 0.7 million, which is included in G eneral and administrative expenses in our Consolidated Statement of Operations.

These businesses contributed revenue of $ 7.7 million and net income of $ 0.8 million from acquisition through December 31, 2024.

The 2022 acquisitions include ten funeral homes and three cemeteries in California as part of two acquisitions (the "2022 California Businesses") for $ 71.2 million in cash.

This amount includes the use of $ 13.2 million in IRS Section 1031 exchange funds.

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;

• 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 thousands):

Other current assets $ 241

Cemetery property 9,815

Property and equipment, net 19,109

Preneed receivables, net and trust investments 6,539

Indefinite-lived intangible assets 14,257

Deferred charges and other assets 158

Cemetery perpetual care trust investments 6,461

Goodwill 36,234

Total assets acquired 92,814

Current liabilities 439

Deferred revenue and deferred receipts held in trust 12,599

Care trusts' corpus 6,461

Other liabilities 2,095

Total liabilities assumed 21,594

Net assets acquired $ 71,220

Goodwill, land, and certain identifiable intangible assets recorded in the acquisitions are not subject to amortization;

however, the goodwill and intangible assets will be tested periodically for impairment.

Of the $36.2 million in goodwill recognized, all of which is deductible for tax purposes, $17.3 million was allocated to our cemetery segment and $18.9 million was allocated to our funeral segment.

The identified intangible assets are indefinite lived tradenames with a fair value of $14.3 million.

We incurred acquisition costs of $0.2 million, which is included in General and administrative expenses in our Consolidated Statement of Operations for the year ended December 31, 2022.

The 2022 California Businesses contributed revenue of $1.9 million and net income of $0.5 million from acquisition through December 31, 2022.

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 (Losses) g ains on divestitures and impairment charges, net , which consist of the following:

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

Years Ended December 31,

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Impairment losses ( 3,400 ) ( 23,825 ) ( 2,727 )

(Losses) gains on divestitures and impairment charges, net $ ( 12,488 ) $ 9,816 $ 9,962

During 2024, we incurred $23.8 million in impairments primarily from the following events:

impairments on assets held for sale, impairments on internally developed software due to a change in insurance vendor and re-prioritization of digital projects, and impairment of intangibles as part of our annual test for impairment.

82 Service Corporation International

Gains (losses) on divestitures and impairment charges, net $ 6,151 $ ( 12,488 ) $ 9,816

Service Corporation International

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Year Ended December 31, 2023 $ 118,939 $ ( 10,105 ) $ — $ 108,834

84 Service Corporation International

Changes In and Disagreements with Accountants on Accounting and Financial Disclosure

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 8. Financial Statements and Supplementary Data