Service International(SCI) - 2025 Q1 - Quarterly Report

Glossary The glossary defines key terms common to the deathcare industry, such as 'Atneed,' 'Preneed,' 'Cremation,' 'Cemetery Perpetual Care Trust,' and various revenue and service-related terms, to ensure consistent understanding throughout the report - The glossary defines key terms common to the deathcare industry, such as 'Atneed,' 'Preneed,' 'Cremation,' 'Cemetery Perpetual Care Trust,' and various revenue and service-related terms, to ensure consistent understanding throughout the report[8][25][30] PART I. FINANCIAL INFORMATION This section presents Service Corporation International's unaudited condensed consolidated financial statements and management's discussion and analysis for the first quarter Item 1. Financial Statements This section presents the unaudited condensed consolidated financial statements for Service Corporation International, including the statements of operations, comprehensive income, balance sheet, cash flows, and equity, along with detailed notes explaining the company's accounting policies, preneed activities, debt, equity, segment reporting, commitments, and earnings per share for the three months ended March 31, 2025 and 2024 Unaudited Condensed Consolidated Statement of Operations This statement provides a summary of the company's revenues, expenses, and net income for the three months ended March 31, 2025 and 2024 Condensed Consolidated Statement of Operations (Three Months Ended March 31) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (YoY) | Change (%) | | :----------------------------------- | :------------------ | :------------------ | :----------- | :--------- | | Total Revenue | $1,074,167 | $1,045,382 | $28,785 | 2.75% | | Gross Profit | $291,417 | $274,213 | $17,204 | 6.27% | | Operating Income | $251,687 | $232,204 | $19,483 | 8.39% | | Net Income | $142,927 | $131,274 | $11,653 | 8.88% | | Net Income Attributable to Common Stockholders | $142,880 | $131,301 | $11,579 | 8.82% | | Basic Earnings Per Share | $0.99 | $0.90 | $0.09 | 10.00% | | Diluted Earnings Per Share | $0.98 | $0.89 | $0.09 | 10.11% | Unaudited Condensed Consolidated Statement of Comprehensive Income This statement presents the company's net income and other comprehensive income components, reflecting total comprehensive income for the three months ended March 31, 2025 and 2024 Condensed Consolidated Statement of Comprehensive Income (Three Months Ended March 31) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (YoY) | Change (%) | | :------------------------------------------ | :------------------ | :------------------ | :----------- | :--------- | | Net Income | $142,927 | $131,274 | $11,653 | 8.88% | | Foreign Currency Translation Adjustments | $527 | $(8,480) | $9,007 | -106.22% | | Total Comprehensive Income | $143,454 | $122,794 | $20,660 | 16.83% | | Total Comprehensive Income Attributable to Common Stockholders | $143,407 | $122,824 | $20,583 | 16.76% | Unaudited Condensed Consolidated Balance Sheet This statement provides a snapshot of the company's assets, liabilities, and equity as of March 31, 2025, and December 31, 2024 Condensed Consolidated Balance Sheet (as of March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (QoQ) | Change (%) | | :-------------------------------- | :---------------------------- | :----------------------------- | :----------- | :--------- | | Total Assets | $17,316,088 | $17,379,438 | $(63,350) | -0.36% | | Total Liabilities | $15,664,468 | $15,700,769 | $(36,301) | -0.23% | | Total Equity | $1,651,620 | $1,678,669 | $(27,049) | -1.61% | Unaudited Condensed Consolidated Statement of Cash Flows This statement details the cash inflows and outflows from operating, investing, and financing activities for the three months ended March 31, 2025 and 2024 Condensed Consolidated Statement of Cash Flows (Three Months Ended March 31) | Cash Flow Activity | 2025 (in thousands) | 2024 (in thousands) | Change (YoY) | Change (%) | | :-------------------------------- | :------------------ | :------------------ | :----------- | :--------- | | Net Cash Provided by Operating Activities | $311,147 | $220,123 | $91,024 | 41.35% | | Net Cash Used in Investing Activities | $(90,744) | $(96,805) | $6,061 | -6.26% | | Net Cash Used in Financing Activities | $(205,694) | $(133,988) | $(71,706) | 53.52% | | Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | $14,837 | $(12,496) | $27,333 | -218.74% | Unaudited Condensed Consolidated Statement of Equity This statement outlines changes in the company's equity components, including common stock, retained earnings, and comprehensive loss, for the three months ended March 31, 2025 and 2024 Condensed Consolidated Statement of Equity (Three Months Ended March 31) | Metric | March 31, 2025 (in thousands) | March 31, 2024 (in thousands) | Change (YoY) | Change (%) | | :-------------------------------- | :---------------------------- | :---------------------------- | :----------- | :--------- | | Common Stock | $146,885 | $148,980 | $(2,095) | -1.41% | | Capital in Excess of Par Value | $980,463 | $952,344 | $28,119 | 2.95% | | Retained Earnings | $534,032 | $475,545 | $58,487 | 12.30% | | Accumulated Other Comprehensive Loss | $(6,694) | $16,414 | $(23,108) | -140.78% | | Total Common Stockholders' Equity | $1,651,075 | $1,590,781 | $60,294 | 3.79% | Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements, covering accounting policies, preneed activities, debt, equity, and other critical financial information 1. Nature of Operations Service Corporation International (SCI) is North America's largest provider of deathcare products and services, operating a network of funeral service locations and cemeteries in the U.S. and Canada - SCI is North America's largest deathcare provider, operating 1,489 funeral service locations and 496 cemeteries (309 combination locations) across 44 U.S. states, 8 Canadian provinces, D.C., and Puerto Rico[39][88] - The company sells cemetery property and funeral/cemetery merchandise and services on both an at-need (after death) and preneed (prior to death) basis[39] 2. Summary of Significant Accounting Policies This section outlines SCI's key accounting policies, including principles of consolidation, use of estimates, and treatment of cash, cash equivalents, and restricted cash - The unaudited condensed consolidated financial statements include SCI and its subsidiaries, as well as merchandise, service, and cemetery perpetual care trusts where SCI is the primary beneficiary[42][43] Cash, Cash Equivalents, and Restricted Cash (in thousands) | Component | March 31, 2025 | December 31, 2024 | | :-------------------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $227,159 | $218,766 | | Restricted cash | $9,077 | $2,633 | | Total cash, cash equivalents, and restricted cash | $236,236 | $221,399 | Receivables, Net (in thousands) | Component | March 31, 2025 | December 31, 2024 | | :---------------------- | :------------- | :---------------- | | Receivables | $99,932 | $98,381 | | Reserve for credit losses | $(3,781) | $(4,040) | | Receivables, net | $96,151 | $94,341 | - New FASB guidance on income tax disclosures (effective after December 15, 2024) and disaggregation of income statement expenses (effective after December 15, 2026) is not expected to materially affect SCI's financial position or results of operations[50][51] 3. Preneed Activities This note details SCI's preneed activities, including preneed receivables, trust investments, and deferred revenue, providing comprehensive data on their financial impact Preneed Receivables, Net and Trust Investments (in thousands) | Component | March 31, 2025 | December 31, 2024 | | :-------------------------------------- | :------------- | :---------------- | | Preneed receivables, net | $1,547,225 | $1,570,773 | | Trust investments, at market | $7,007,627 | $7,084,723 | | Insurance-backed fixed income securities and other | $237,042 | $237,868 | | Preneed trust investments | $5,118,545 | $5,168,559 | | Total Preneed receivables, net and trust investments | $6,665,770 | $6,739,332 | Preneed Receivables, Net by Type (in thousands) | Type | March 31, 2025 | December 31, 2024 | | :------- | :------------- | :---------------- | | Funeral | $142,178 | $151,801 | | Cemetery | $1,405,047 | $1,418,972 | | Total | $1,547,225 | $1,570,773 | Trust Investment-Related Activities (Three Months Ended March 31, in thousands) | Activity | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Deposits | $158,266 | $156,119 | | Withdrawals | $142,934 | $130,607 | | Purchases of securities | $555,267 | $341,998 | | Sales of securities | $473,883 | $334,719 | | Realized gains from sales of securities | $101,265 | $105,445 | | Realized losses from sales of securities | $(26,137) | $(31,815) | Recognized Trust Fund Income (Three Months Ended March 31, in millions) | Trust Type | 2025 | 2024 | | :-------------------------------- | :--- | :--- | | Preneed Trust Investments | $48.2 | $42.7 | | Cemetery Perpetual Care Trust Investments | $26.1 | $23.3 | Deferred Revenue, Net (in thousands) | Component | March 31, 2025 | December 31, 2024 | | :-------------------------------------------------------------------------------- | :------------- | :---------------- | | Deferred revenue | $2,764,162 | $2,745,104 | | Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts | $(993,634) | $(989,934) | | Deferred revenue, net | $1,770,528 | $1,755,170 | 4. Income Taxes This note details SCI's income tax expense and effective tax rate for the quarter, highlighting factors influencing the rate Effective Tax Rate (Three Months Ended March 31) | Metric | 2025 | 2024 | | :------------- | :--- | :--- | | Effective Tax Rate | 26.1% | 22.9% | - The higher effective tax rate in Q1 2025 (26.1%) compared to Q1 2024 (22.9%) is mainly due to non-deductible excess tax benefits on employee share-based awards and state/foreign tax expenses, exceeding the federal statutory rate of 21.0%[61] 5. Debt This note outlines SCI's debt structure, including various senior notes, term loans, and credit facilities, detailing interest rates and compliance with covenants Debt Components (in thousands) | Debt Type | March 31, 2025 | December 31, 2024 | | :-------------------------------------- | :------------- | :---------------- | | Total Debt | $4,825,935 | $4,835,298 | | Less: Current maturities of long-term debt | $(87,690) | $(83,850) | | Total Long-Term Debt | $4,738,245 | $4,751,448 | Interest Rate Composition | Metric | March 31, 2025 | December 31, 2024 | | :----------- | :------------- | :---------------- | | Fixed Debt | 4.65% | 4.64% | | Floating Debt | 6.46% | 6.50% | | Total Debt | 4.92% | 4.93% | - Approximately 85% of total debt had a fixed interest rate at March 31, 2025. The company was in compliance with all debt covenants, including a leverage ratio of 3.59 against a maximum of 5.00[64][66][95] - During Q1 2025, SCI issued $187.5 million in new debt (Bank Credit Facility and Corporate Headquarters Debt Facility) and made aggregate debt payments of $201.5 million (Bank Credit Facility, Term Loan, and other debt)[67][69] 6. Credit Risk and Fair Value of Financial Instruments This note provides fair value estimates for SCI's financial instruments, emphasizing that carrying values for short-term instruments and preneed contracts approximate fair value Fair Value of Debt Instruments (in thousands) | Debt Instrument | March 31, 2025 | December 31, 2024 | | :-------------------------------------- | :------------- | :---------------- | | 7.5% Senior Notes due April 2027 | $141,444 | $140,615 | | 4.625% Senior Notes due December 2027 | $538,852 | $536,052 | | 5.125% Senior Notes due June 2029 | $738,195 | $728,430 | | 3.375% Senior Notes due August 2030 | $761,447 | $745,612 | | 4.0% Senior Notes due May 2031 | $728,568 | $712,640 | | 5.75% Senior Notes due October 2032 | $789,528 | $778,752 | | Term Loan due January 2028 | $637,031 | $641,250 | | Bank Credit Facility due January 2028 | $110,000 | $120,000 | | Corporate Headquarters Debt Facility due February 2037 | $2,522 | $0 | | Mortgage notes and other debt | $84,989 | $85,574 | | Total Fair Value of Debt Instruments | $4,532,576 | $4,488,925 | - Fixed-rate loans are classified as Level 2 fair value measurements, while the Term Loan, Bank Credit Facility, Corporate Headquarters Debt Facility, and mortgage/other debt are Level 3, estimated using discounted cash flow analysis[70] 7. Equity This note details SCI's share repurchase program, including the number of shares repurchased and the remaining authorization - During the three months ended March 31, 2025, SCI repurchased 1,636,341 shares of common stock at an aggregate cost of $130.8 million, averaging $79.93 per share[71] - As of March 31, 2025, $153.7 million remained authorized under the share repurchase program. An additional 916,010 shares were repurchased for $71.3 million subsequent to quarter-end[71][72] 8. Segment Reporting This note provides disaggregated revenue and gross profit information for SCI's funeral and cemetery operations, its reportable segments Segment Revenue and Gross Profit (Three Months Ended March 31, in thousands) | Segment | 2025 Revenue | 2024 Revenue | YoY Revenue Change | 2025 Gross Profit | 2024 Gross Profit | YoY Gross Profit Change | | :-------------------- | :----------- | :----------- | :----------------- | :---------------- | :---------------- | :---------------------- | | Funeral Operations | $639,494 | $604,733 | $34,761 (5.75%) | $153,978 | $131,874 | $22,104 (16.76%) | | Cemetery Operations | $434,673 | $440,649 | $(5,976) (-1.36%) | $137,439 | $142,339 | $(4,900) (-3.44%) | | Total from Customers | $1,074,167 | $1,045,382 | $28,785 (2.75%) | $291,417 | $274,213 | $17,204 (6.27%) | Revenue from External Customers by Geography (Three Months Ended March 31, in thousands) | Geography | 2025 | 2024 | YoY Change | | :---------- | :----------- | :----------- | :--------- | | United States | $1,020,407 | $988,456 | $31,951 | | Canada | $53,760 | $56,926 | $(3,166) | | Total | $1,074,167 | $1,045,382 | $28,785 | 9. Commitments and Contingencies This note addresses SCI's insurance loss reserves, ongoing litigation, and regulatory matters, particularly concerning unclaimed property audits Self-Insurance Reserves (in millions) | Metric | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | Self-insurance reserves | $107.4 | $105.8 | - SCI is involved in various litigation and regulatory matters, including operational claims and employment-related issues, and accrues for unfavorable outcomes when probable and estimable[80] - Unclaimed property audits for preneed trust funds are ongoing in some states, though resolved in 18 states. The Florida Agreement allows SCI to retain trust fund earnings while escheating principal[82][83] 10. Earnings Per Share This note provides the reconciliation of basic and diluted earnings per share (EPS) for the three months ended March 31, 2025 and 2024 Basic and Diluted EPS Reconciliation (Three Months Ended March 31, in thousands, except per share amounts) | Metric | 2025 | 2024 | | :-------------------------------------- | :----- | :----- | | Net income — basic and diluted | $142,880 | $131,301 | | Weighted average shares — basic | 144,116 | 146,266 | | Weighted average shares — diluted | 145,292 | 147,913 | | Basic EPS | $0.99 | $0.90 | | Diluted EPS | $0.98 | $0.89 | - Diluted EPS computation excluded 4 thousand antidilutive options in 2025 and 569 thousand in 2024[87] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on SCI's financial performance, liquidity, and capital resources for the three months ended March 31, 2025 The Company Service Corporation International (SCI) is North America's largest deathcare provider, operating 1,489 funeral service locations and 496 cemeteries - SCI operates 1,489 funeral service locations and 496 cemeteries (309 combination locations) across 44 U.S. states, 8 Canadian provinces, D.C., and Puerto Rico[88] - The company's financial position is supported by a $15.9 billion backlog of future revenue from trust and insurance-funded preneed sales as of March 31, 2025[88] - Factors affecting operating results include demographic trends, market share, cremation trends (cremation rate increased 70 basis points to 64.1% in Q1 2025), cost control, and pricing leverage[90][142] Financial Condition, Liquidity, and Capital Resources SCI maintains strong liquidity and a favorable debt maturity profile, supported by robust operating cash flows and a strategic capital allocation approach - SCI's leverage ratio was 3.59 as of March 31, 2025, well within the credit agreement's maximum of 5.00, and aligned with the target of 3.5x to 4.0x[94][95][100] - Capital allocation priorities include investing in acquisitions and new locations, returning excess cash to shareholders (targeting 30-40% payout ratio for dividends), and managing debt[98][99][100] Net Cash Flow Activities (Three Months Ended March 31, in millions) | Activity | 2025 | 2024 | Change (YoY) | | :-------------------------------- | :----- | :----- | :----------- | | Net cash provided by operating activities | $311.1 | $220.1 | $91.0 | | Net cash used in investing activities | $(90.7) | $(96.8) | $6.1 | | Net cash used in financing activities | $(205.7) | $(134.0) | $(71.7) | Surety Bonds Outstanding (in millions) | Type | March 31, 2025 | December 31, 2024 | | :-------------------------------------- | :------------- | :---------------- | | Bonds supporting preneed funeral and cemetery obligations | $420.2 | $418.8 | | Bonds supporting preneed business permits | $8.2 | $8.1 | | Other bonds | $27.7 | $27.5 | | Total surety bonds outstanding | $456.1 | $454.4 | Preneed Sales Production and Maturities (Three Months Ended March 31, in millions) | Metric | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Insurance-funded sales production | $190.5 | $177.2 | | Insurance-funded maturities | $119.7 | $108.4 | | Trust-funded funeral sales production | $97.0 | $138.9 | | Trust-funded funeral maturities | $103.8 | $96.6 | | Cemetery preneed sales production | $324.6 | $330.8 | Total Backlog of Deferred Revenue (in billions) | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------------------------------------------------------------- | :------------- | :---------------- | | Backlog of trust-funded deferred revenue, net of estimated allowance for cancellation | $7.64 | $7.60 | | Backlog of insurance-funded revenue | $8.37 | $8.32 | | Total backlog of deferred revenue | $15.92 | $16.01 | Results of Operations - Three Months Ended March 31, 2025 & 2024 This section provides a detailed analysis of SCI's operating results for the first quarter of 2025 compared to 2024, highlighting changes in net income and EPS Management Summary SCI reported increased consolidated net income and diluted EPS for Q1 2025, driven by higher funeral gross profit and lower interest expense Key Financial Highlights (Three Months Ended March 31, in millions, except per share amounts) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------------------- | :----- | :----- | :----------- | | Net income attributable to common stockholders | $142.9 | $131.3 | $11.6 | | Diluted earnings per share | $0.98 | $0.89 | $0.09 | | Pre-tax gains (losses) on divestitures and impairment charges, net | $5.0 | $(0.7) | $5.7 | | Tax effect from significant items | $(1.3) | $0.1 | $(1.4) | Funeral Results Consolidated funeral revenue increased by $34.8 million, or 5.75%, in Q1 2025, primarily due to growth from acquired properties and higher comparable revenue Consolidated Funeral Performance (Three Months Ended March 31, in millions, except per service amounts) | Metric | 2025 | 2024 | Change (YoY) | Change (%) | | :-------------------------------- | :----- | :----- | :----------- | :--------- | | Consolidated funeral revenue | $639.5 | $604.7 | $34.8 | 5.75% | | Comparable funeral revenue | $625.9 | $602.6 | $23.3 | 3.87% | | Adjusted comparable funeral revenue | $549.2 | $527.4 | $21.8 | 4.13% | | Comparable services performed | 95,624 | 93,967 | 1,657 | 1.76% | | Comparable average revenue per service | $5,743 | $5,613 | $130 | 2.32% | | Consolidated funeral gross profit | $154.0 | $131.9 | $22.1 | 16.76% | | Comparable funeral gross profit | $152.4 | $131.7 | $20.7 | 15.72% | - Non-funeral home preneed sales revenue decreased by $6.8 million, primarily due to an operational decision to defer urn delivery to the time of need and a 25.5% decline in sales production, which are considered short-term impacts[141] - Core general agency and other revenue grew $8.3 million, driven by higher commission rates from a new preneed insurance agreement[142] Cemetery Results Consolidated cemetery revenue decreased by $5.9 million, or 1.3%, in Q1 2025, mainly due to a decline in comparable cemetery revenue and preneed property sales Consolidated Cemetery Performance (Three Months Ended March 31, in millions) | Metric | 2025 | 2024 | Change (YoY) | Change (%) | | :-------------------------------- | :----- | :----- | :----------- | :--------- | | Consolidated cemetery revenue | $434.7 | $440.6 | $(5.9) | -1.34% | | Comparable cemetery revenue | $432.9 | $440.7 | $(7.8) | -1.77% | | Consolidated cemetery gross profit | $137.4 | $142.3 | $(4.9) | -3.44% | | Comparable cemetery gross profit | $136.8 | $142.6 | $(5.8) | -4.07% | - The decline in comparable cemetery revenue was primarily due to an $11.9 million decrease in recognized preneed property revenue, partially offset by a $2.0 million increase in at-need revenue[146] Other Financial Statement Items This section summarizes changes in other key financial statement items for Q1 2025, including corporate expenses, divestiture gains, interest expense, and tax rate - Corporate general and administrative expenses increased by $3.4 million to $44.7 million in Q1 2025, driven by higher workers' compensation costs and incentive compensation accruals[148] - SCI recognized a $5.0 million net pre-tax gain on asset divestitures and impairments in Q1 2025, compared to a $0.7 million net pre-tax loss in Q1 2024[149] - Interest expense decreased by $2.9 million to $61.5 million in Q1 2025, primarily due to lower interest rates on floating rate debt[150] - The effective tax rate increased to 26.1% in Q1 2025 from 22.9% in Q1 2024, mainly due to non-deductible excess tax benefits on employee share-based awards[151] - Diluted weighted average shares outstanding decreased to 145.3 million in Q1 2025 from 147.9 million in Q1 2024, reflecting the impact of share repurchases[152] Critical Accounting Policies This section states that SCI's critical accounting policies have not materially changed since December 31, 2024, and involve estimates and assumptions - No significant changes to critical accounting policies since December 31, 2024, as disclosed in the Annual Report on Form 10-K[153] - The preparation of financial statements requires management to make estimates and assumptions, which may affect reported amounts and could differ from actual results[153] Cautionary Statement on Forward-Looking Statements This section serves as a cautionary statement regarding forward-looking statements, emphasizing that actual results may differ materially due to various important factors and risks - Forward-looking statements are subject to important factors that could cause actual results to differ materially, and the company assumes no obligation to update or revise them[155][156] - Key risk factors include market conditions affecting trust funds, potential need to replenish trust funds, effects of inflation/recession, significant weather events, debt covenants, reliance on surety bonding, third-party insurance company financial condition, and various operational, competitive, and regulatory risks[155][157] Item 3. Quantitative and Qualitative Disclosures about Market Risk This section provides information on SCI's exposure to market risks, specifically interest rates and prices of marketable securities, for non-trading purposes - The primary market risks are related to changes in interest rates and prices of marketable securities held in connection with preneed operations and sales[158][159] - All market risk-sensitive instruments are entered into for purposes other than trading[158] Item 4. Controls and Procedures This section confirms the effectiveness of SCI's disclosure controls and procedures and reports no material changes in internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025, ensuring timely and accurate reporting[160] - No material changes in internal control over financial reporting occurred during the quarter ended March 31, 2025[161] PART II. OTHER INFORMATION This section covers other required information, including legal proceedings, risk factors, equity sales, defaults, mine safety, and exhibits Item 1. Legal Proceedings This section incorporates by reference the information regarding legal proceedings from Note 9 of the financial statements - Information on legal proceedings is incorporated by reference from Note 9 of the financial statements[164] Item 1A. Risk Factors This section states that there have been no material changes to the company's risk factors as previously disclosed in its Annual Report on Form 10-K - No material changes to risk factors have occurred since the Annual Report on Form 10-K for fiscal year ended December 31, 2024[165] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section summarizes SCI's share repurchase activities during the three months ended March 31, 2025, detailing shares purchased and remaining authorization Share Repurchases (Three Months Ended March 31, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Approximate Dollar Value of Shares That May Yet be Purchased Under the Program | | :----------------------------------- | :----------------------------- | :--------------------------- | :-------------------------------------------------------------------- | :-------------------------------------------------------------------------- | | January 1, 2025 — January 31, 2025 | 346,855 | $78.02 | 331,431 | $254,713,742 | | February 1, 2025 — February 28, 2025 | 451,866 | $78.76 | 451,866 | $219,125,768 | | March 1, 2025 — March 31, 2025 | 837,620 | $79.60 | 821,516 | $153,731,417 | | Total | 1,636,341 | | 1,604,813 | | - 15,424 shares in January and 16,104 shares in March were purchased in connection with employee tax withholding obligations and were not part of the publicly announced repurchase program[166] Item 3. Defaults Upon Senior Securities This section states that there were no defaults upon senior securities during the reporting period - No defaults upon senior securities were reported[167] Item 4. Mine Safety Disclosures This section indicates that mine safety disclosures are not applicable to Service Corporation International - Mine safety disclosures are not applicable to the company[168] Item 5. Other Information This section confirms that no director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2025 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2025[169] Item 6. Exhibits This section lists all exhibits filed as part of the Form 10-Q, including corporate governance documents, debt agreements, and certifications - The exhibits include corporate governance documents (Restated Articles of Incorporation, Bylaws), debt agreements (Senior Indenture, Credit Agreement), employment agreements, and certifications (Sarbanes-Oxley Act Section 302 and 906)[170] - Interactive data files formatted in Inline XBRL are also included as exhibits[170] SIGNATURE This section contains the official signature confirming the accuracy and completeness of the report - The report was signed on May 1, 2025, by Tammy Moore, Vice President and Chief Accounting Officer (Principal Accounting Officer) of Service Corporation International[171]