SERVICE CORP INTERNATIONALSCI
SERVICE CORP INTERNATIONAL Segments Disclosure
Segment Reporting
Our operations are both product-based and geographically-based, and the reportable operating segments presented below include our funeral and cemetery operations. Our geographic areas include the United States and Canada, where we conduct both funeral and cemetery operations.
Our reportable segment, including disaggregated revenue, information was as follows and includes a reconciliation to operating profit to our consolidated income before income taxes.
Years Ended December 31, | |||||||||||
2018 | 2017(1) | 2016(1) | |||||||||
(In thousands) | |||||||||||
Revenue from customers: | |||||||||||
Funeral revenue: | |||||||||||
Atneed revenue | $ | 998,464 | $ | 1,011,214 | $ | 1,045,533 | |||||
Matured preneed revenue | 600,944 | 574,235 | 538,013 | ||||||||
Core funeral revenue | 1,599,408 | 1,585,449 | 1,583,546 | ||||||||
Non-funeral home revenue | 49,671 | 46,513 | 42,957 | ||||||||
Recognized preneed revenue | 125,144 | 117,352 | 111,640 | ||||||||
Other revenue | 123,769 | 118,838 | 130,968 | ||||||||
Total funeral revenue | 1,897,992 | 1,868,152 | 1,869,111 | ||||||||
Cemetery revenue: | |||||||||||
Atneed revenue | 323,162 | 319,899 | 307,826 | ||||||||
Recognized preneed property revenue | 572,955 | 538,314 | 515,854 | ||||||||
Recognized preneed merchandise and services revenue | 288,282 | 274,885 | 240,301 | ||||||||
Core cemetery revenue | 1,184,399 | 1,133,098 | 1,063,981 | ||||||||
Other revenue | 107,783 | 93,781 | 98,045 | ||||||||
Total cemetery revenue | 1,292,182 | 1,226,879 | 1,162,026 | ||||||||
Total revenue from customers | $ | 3,190,174 | $ | 3,095,031 | $ | 3,031,137 | |||||
Operating profit: | |||||||||||
Funeral operating profit | $ | 369,613 | $ | 371,853 | $ | 361,022 | |||||
Cemetery operating profit | 390,709 | 350,926 | 315,828 | ||||||||
Operating profit from reportable segments | 760,322 | 722,779 | 676,850 | ||||||||
General and administrative expenses | (145,499 | ) | (153,067 | ) | (136,708 | ) | |||||
Gains (losses) on divestitures and impairment charges, net | 15,933 | 7,015 | (26,819 | ) | |||||||
Hurricane expenses, net | (97 | ) | (5,584 | ) | — | ||||||
Operating income | 630,659 | 571,143 | 513,323 | ||||||||
Interest expense | (181,556 | ) | (169,125 | ) | (162,093 | ) | |||||
Losses on early extinguishment of debt, net | (10,131 | ) | (274 | ) | (22,503 | ) | |||||
Other income (expense), net | 2,760 | (1,486 | ) | (2,069 | ) | ||||||
Income before income taxes | $ | 441,732 | $ | 400,258 | $ | 326,658 | |||||
(1) | The results for the years ended December 31, 2017 and 2016 have not been adjusted for the impact of our adoption of "Revenue from Contracts with Customers" on January 1, 2018. |
Other reportable segment information for the year ended December 31 was as follows:
Reportable Segments | |||||||||||||||
Funeral | Cemetery | Corporate | Consolidated | ||||||||||||
(In thousands) | |||||||||||||||
2018 | |||||||||||||||
Interest expense | $ | 3,634 | $ | 469 | $ | 177,453 | $ | 181,556 | |||||||
Depreciation and amortization | $ | 108,891 | $ | 33,183 | $ | 11,576 | $ | 153,650 | |||||||
Amortization of intangibles | $ | 17,515 | $ | 8,619 | $ | 61 | $ | 26,195 | |||||||
Amortization of cemetery property | $ | — | $ | 68,640 | $ | — | $ | 68,640 | |||||||
Capital expenditures | $ | 99,008 | $ | 125,131 | $ | 11,406 | $ | 235,545 | |||||||
Total assets | $ | 5,411,178 | $ | 6,913,132 | $ | 368,933 | $ | 12,693,243 | |||||||
2017 (1) | |||||||||||||||
Interest expense | $ | 3,986 | $ | 401 | $ | 164,738 | $ | 169,125 | |||||||
Depreciation and amortization | $ | 109,965 | $ | 32,815 | $ | 10,361 | $ | 153,141 | |||||||
Amortization of intangibles | $ | 17,871 | $ | 9,696 | $ | 83 | $ | 27,650 | |||||||
Amortization of cemetery property | $ | — | $ | 68,102 | $ | — | $ | 68,102 | |||||||
Capital expenditures | $ | 83,241 | $ | 118,699 | $ | 12,561 | $ | 214,501 | |||||||
Total assets | $ | 5,393,205 | $ | 6,946,351 | $ | 524,947 | $ | 12,864,503 | |||||||
2016 (1) | |||||||||||||||
Interest expense | $ | 3,906 | $ | 105 | $ | 158,082 | $ | 162,093 | |||||||
Depreciation and amortization | $ | 106,602 | $ | 31,081 | $ | 9,550 | $ | 147,233 | |||||||
Amortization of intangibles | $ | 20,444 | $ | 10,438 | $ | 74 | $ | 30,956 | |||||||
Amortization of cemetery property | $ | — | $ | 66,745 | $ | — | $ | 66,745 | |||||||
Capital expenditures | $ | 68,666 | $ | 113,163 | $ | 11,617 | $ | 193,446 | |||||||
(1) | The results for the years ended December 31, 2017 and 2016 have not been adjusted for the impact of our adoption of "Revenue from Contracts with Customers" on January 1, 2018. |
Our geographic area information for the year ended December 31 was as follows:
United States | Canada | Total | |||||||||
(In thousands) | |||||||||||
2018 | |||||||||||
Revenue from external customers | $ | 2,991,617 | $ | 198,557 | $ | 3,190,174 | |||||
Interest expense | $ | 181,266 | $ | 290 | $ | 181,556 | |||||
Depreciation and amortization | $ | 144,877 | $ | 8,773 | $ | 153,650 | |||||
Amortization of intangibles | $ | 25,664 | $ | 531 | $ | 26,195 | |||||
Amortization of cemetery property | $ | 63,709 | $ | 4,931 | $ | 68,640 | |||||
Operating income | $ | 568,446 | $ | 62,213 | $ | 630,659 | |||||
Gains on divestitures and impairment charges, net | $ | 8,419 | $ | 7,514 | $ | 15,933 | |||||
Long-lived assets | $ | 6,334,924 | $ | 277,897 | $ | 6,612,821 | |||||
2017 (1) | |||||||||||
Revenue from external customers | $ | 2,889,463 | $ | 205,568 | $ | 3,095,031 | |||||
Interest expense | $ | 168,956 | $ | 169 | $ | 169,125 | |||||
Depreciation and amortization | $ | 143,932 | $ | 9,209 | $ | 153,141 | |||||
Amortization of intangibles | $ | 27,092 | $ | 558 | $ | 27,650 | |||||
Amortization of cemetery property | $ | 61,307 | $ | 6,795 | $ | 68,102 | |||||
Operating income | $ | 502,865 | $ | 68,278 | $ | 571,143 | |||||
Gains on divestitures and impairment charges, net | $ | 61 | $ | 6,954 | $ | 7,015 | |||||
Long-lived assets | $ | 5,786,063 | $ | 286,135 | $ | 6,072,198 | |||||
2016 (1) | |||||||||||
Revenue from external customers | $ | 2,848,876 | $ | 182,261 | $ | 3,031,137 | |||||
Interest expense (income) | $ | 162,341 | $ | (248 | ) | $ | 162,093 | ||||
Depreciation and amortization | $ | 138,560 | $ | 8,673 | $ | 147,233 | |||||
Amortization of intangibles | $ | 30,427 | $ | 529 | $ | 30,956 | |||||
Amortization of cemetery property | $ | 61,449 | $ | 5,296 | $ | 66,745 | |||||
Operating income | $ | 461,825 | $ | 51,498 | $ | 513,323 | |||||
(Losses) gains on divestitures and impairment charges, net | $ | (27,658 | ) | $ | 839 | $ | (26,819 | ) | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2018 | Feb 20, 2019 | Showing above |
| 2017 | Feb 14, 2018 | |
| 2016 | Feb 15, 2017 | |
| 2015 | Feb 18, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.