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Acquisition Level 1 (Notes) | 12 Months Ended
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Dec. 31, 2014
Business Combinations [Abstract] |
Business Combination Disclosure [Text Block] | Acquisition Stewart On December 23, 2013, pursuant to a tender offer, we acquired Stewart Enterprises, Inc. (Stewart) for $13.25 per share in cash, resulting in a purchase price of $1.5 billion, which includes the assumption of $331.5 million of Stewart’s debt. We incurred acquisition costs of $39.7 million of which $28.4 million is included in General and administrative expenses and $11.3 million is included in Interest expense for the year ended December 31, 2013. The primary reasons for the merger and the principal factors that contributed to the recognition of goodwill in this acquisition were:
• | the acquisition of Stewart enhances our network footprint, enabling us to serve a number of new, complementary areas;
• | combining the two companies’ operations provides synergies and related cost savings through the elimination of duplicate home office functions and economies of scale; and
• | the acquisition of Stewart’s preneed backlog of deferred revenues enhances our long-term stability.
The following table summarizes the adjusted fair values of the assets acquired and liabilities assumed as of December 23, 2013:
| (In thousands)
Accounts receivable | $ | 11,119 |
Other current assets | 190,518 |
Cemetery property | 287,449 |
Property and equipment, net | 330,125 |
Preneed funeral and cemetery receivables and trust investments | 645,440 |
Finite-lived intangible assets | 75,444 |
Indefinite-lived intangible assets | 79,400 |
Acquired assets held for sale | 520,023 |
Deferred charges and other assets | 278,631 |
Goodwill | 573,808 |
Total assets acquired | 2,991,957 |
Current liabilities | 219,373 |
Long-term debt | 270,668 |
Deferred preneed funeral and cemetery revenues and deferred receipts held in trusts | 740,441 |
Assumed liabilities held for sale | 242,835 |
Deferred income taxes | 58,493 |
Other liabilities | 294,674 |
Total liabilities assumed | 1,826,484 |
Noncontrolling interest | 118 |
Net assets acquired | $ | 1,165,355 |
The gross amount of accounts receivable is $14.0 million, of which $2.9 million is not expected to be collected. Included in preneed funeral and cemetery receivables and trust investments are receivables under preneed contracts with a fair value of $140.0 million. The gross amount due under the contracts is $170.3 million, of which $30.3 million is not expected to be collected. We have completed our purchase price allocation. During the twelve months of 2014, we made the following adjustments to our estimates of the fair value of assets and liabilities and revised the consolidated balance sheet as of December 31, 2013 included in this filing to reflect these adjustments:
| (In thousands)
Decrease in the fair value of accounts receivable and other current assets | $ | (10,900 | )
Increase in the fair value of cemetery property | 2,674 |
Decrease in property and equipment, net | (10,331 | )
Decrease in the fair value of preneed funeral and cemetery receivables and trust investments | (9,570 | )
Decrease in the fair value of finite-lived intangible assets | (30,834 | )
Increase in the fair value of acquired assets held for sale | 85,775 |
Increase in the fair value of deferred charges and other assets | 311 |
Decrease in the fair value of deferred preneed funeral and cemetery revenues and deferred receipts held in trust | 42,417 |
Change in the fair value of acquired assets and liabilities held for sale | (89,198 | )
Decrease in the fair value of deferred income taxes | 41,676 |
Other | (17,250 | )
Total adjustment to goodwill | $ | 4,770 |
Goodwill, land, and certain identifiable intangible assets recorded in the acquisition are not subject to amortization; however, the goodwill and intangible assets will be tested periodically for impairment. Of the $573.8 million in goodwill recognized, $258.2 million was allocated to our cemetery segment and $315.6 million was allocated to our funeral segment. As a result of the carryover of Stewart’s tax basis, $3.0 million of this goodwill is deductible for tax purposes. The identified intangible assets comprise the following:
| Useful life |  |
| Minimum |  | Maximum |  | Fair Value
| (Years) |  | (In thousands)
Preneed customer relationships related to insurance claims | 10 |  | 20 |  | $ | 28,500 |
Other preneed customer relationships | 10 |  | 14 |  | 20,502 |
Selling and management agreements | 10 |  | 40 |  | 5,900 |
Covenants-not-to-compete | 5 |  | 15 |  | 5,480 |
Operating leases | 26 |  | 34 |  | 5,912 |
Tradenames | 5 |  | 5 |  | 9,150 |
Tradenames |  |  | Indefinite |  | 77,900 |
Licenses and permits |  |  | Indefinite |  | 1,500 |
Total intangible assets |  |  |  |  | $ | 154,844 |
Included in our results of operations for the twelve months ended December 31, 2013 is revenue of $11.4 million and net income of $0.8 million for the period from the acquisition date (December 23, 2013) through December 31, 2013. The following unaudited pro forma summary presents financial information as if the acquisition had occurred on January 1, 2012:
| 2013 |  | 2012
| (In thousands)
| (unaudited)
Revenue | $ | 2,919,278 |  |  | $ | 2,848,451 |
Net income | $ | 203,916 |  |  | $ | 135,010 |
SCI Direct During 2013, we acquired an additional 20% of the outstanding shares of The Neptune Society Inc (Neptune) increasing our ownership from 70% to 90%. During 2014 we acquired the remaining 10% of the outstanding shares. Neptune is the nation's largest direct cremation organization with a network of 30 locations in nine states at the time of our original acquisition. Neptune operates under the brand names Neptune Society, National Cremation Service, and Trident Society. With this acquisition we expanded our footprint into a sector of the market that will continue to grow and that was not targeted through our traditional funeral service and cemetery network. We have completed our evaluation of purchase price allocation. As a result of this acquisition, we recognized $37.6 million of intangible assets and $37.3 million of goodwill.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1383-128463 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4922-128472 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4934-128472 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4926-128472 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1392-128463 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1486-128463 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1497-128463 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1490-128463 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4845-128472 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1500-128463 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1524-128463 + Details
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