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v3.21.1

Summary of Significant Accounting Policies Level 2 (Policies) | 3 Months Ended
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Mar. 31, 2021
Consolidation, Policy [Policy Text Block] | Principles of Consolidation and Basis of Presentation Our consolidated financial statements include the accounts of Service Corporation International and all subsidiaries in which we hold a controlling financial interest. Intercompany balances and transactions have been eliminated in consolidation. Our unaudited condensed consolidated financial statements also include the accounts of the merchandise and service trusts and cemetery perpetual care trusts in which we have a variable interest and are the primary beneficiary. We have retained the specialized industry accounting principles when consolidating the trusts. Our trusts are variable interest entities, for which we have determined that we are the primary beneficiary as we absorb a majority of the losses and returns associated with these trusts. Although we consolidate the trusts, it does not change the legal relationships among the trusts, us, or our customers. The customers are the legal beneficiaries of these trusts; therefore, their interests in these trusts represent a liability to us. Our interim condensed consolidated financial statements are unaudited but include all adjustments, consisting of normal recurring accruals and any other adjustments, which management considers necessary for a fair statement of our results for these periods. Our unaudited condensed consolidated financial statements have been prepared in a manner consistent with the accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2020, unless otherwise disclosed herein, and should be read in conjunction therewith. The accompanying year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year period.
Use of Estimates, Policy [Policy Text Block] | Use of Estimates in the Preparation of Financial Statements The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. As a result, actual results could differ from these estimates.
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, Cash Equivalents, and Restricted Cash We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. The carrying amounts of our cash and cash equivalents approximate fair value due to the short-term nature of these instruments.
Accounts Receivable [Policy Text Block] | Receivables, net The components of Receivables, net in our unaudited Condensed Consolidated Balance Sheet were as follows:
| March 31, 2021
| Atneed Funeral |  | Atneed Cemetery |  | Miscellaneous |  | Current Portion of Notes |  | Total
| (In thousands)
Receivables | $ | 51,387 |  |  | $ | 24,664 |  |  | $ | 19,273 |  |  | $ | 764 |  |  | $ | 96,088 |
Reserve for credit losses | (3,974) |  |  | (2,203) |  |  | 132 |  |  | (453) |  |  | (6,498) |
Receivables, net | $ | 47,413 |  |  | $ | 22,461 |  |  | $ | 19,405 |  |  | $ | 311 |  |  | $ | 89,590 |
| December 31, 2020
| Atneed Funeral |  | Atneed Cemetery |  | Miscellaneous |  | Current Portion of Notes |  | Total
| (In thousands)
Receivables | $ | 56,745 |  |  | $ | 22,559 |  |  | $ | 18,545 |  |  | $ | 1,121 |  |  | $ | 98,970 |
Reserve for credit losses | (3,752) |  |  | (1,933) |  |  | 144 |  |  | (490) |  |  | (6,031) |
Receivables, net | $ | 52,993 |  |  | $ | 20,626 |  |  | $ | 18,689 |  |  | $ | 631 |  |  | $ | 92,939 |
Additionally, included in Deferred charges and other assets, net were long-term miscellaneous receivables, net and notes receivable, net as follows:
| March 31, 2021 |  | December 31, 2020
| (In thousands)
Notes receivable | $ | 11,018 |  |  | $ | 12,389 |
Reserve for credit losses | (5,315) |  |  | (5,957) |
Notes receivable, net | $ | 5,703 |  |  | $ | 6,432 |
Long-term miscellaneous receivables | $ | 6,673 |  |  | $ | 6,515 |
Reserve for credit losses | (982) |  |  | (945) |
Long-term miscellaneous receivables, net | $ | 5,691 |  |  | $ | 5,570 |
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 three months ended March 31, 2021:
| January 1, 2021 |  | Provision for Expected Credit Losses |  |  |  | Write Offs |  | Recoveries |  | Effect of Foreign Currency |  | March 31, 2021
| (In thousands)
Trade receivables: |  |  |  |  |  |  |  |  |  |  |  |  |
Funeral | $ | (3,752) |  |  | $ | (1,526) |  |  |  |  | $ | 1,655 |  |  | $ | (366) |  |  | $ | 15 |  |  | $ | (3,974) |
Cemetery | (1,933) |  |  | (514) |  |  |  |  | 237 |  |  | — |  |  | 7 |  |  | (2,203) |
Total reserve for credit losses on trade receivables | $ | (5,685) |  |  | $ | (2,040) |  |  |  |  | $ | 1,892 |  |  | $ | (366) |  |  | $ | 22 |  |  | $ | (6,177) |
Miscellaneous receivables: |  |  |  |  |  |  |  |  |  |  |  |  |
Current | $ | 144 |  |  | $ | (12) |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 132 |
Long-term | (945) |  |  | (37) |  |  |  |  | — |  |  | — |  |  | — |  |  | (982) |
Total reserve for credit losses on miscellaneous receivables | $ | (801) |  |  | $ | (49) |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (850) |
Notes receivable | $ | (6,447) |  |  | $ | 37 |  |  |  |  | $ | 642 |  |  | $ | — |  |  | $ | — |  |  | $ | (5,768) |
At March 31, 2021, the amortized cost basis of our miscellaneous and notes receivables by year of origination was as follows:
| 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior |  | Revolving Line of Credit |  | Total
| (In thousands)
Miscellaneous receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current | $ | 17,784 |  |  | $ | 588 |  |  | $ | 529 |  |  | $ | 289 |  |  | $ | 73 |  |  | $ | 9 |  |  | $ | — |  |  | $ | 19,272 |
Long-term | 1,020 |  |  | 2,109 |  |  | 2,192 |  |  | 1,007 |  |  | 306 |  |  | 39 |  |  | — |  |  | 6,673 |
Total miscellaneous receivables | $ | 18,804 |  |  | $ | 2,697 |  |  | $ | 2,721 |  |  | $ | 1,296 |  |  | $ | 379 |  |  | $ | 48 |  |  | $ | — |  |  | $ | 25,945 |
Notes receivable | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 177 |  |  | $ | — |  |  | $ | 5,526 |  |  | $ | 6,079 |  |  | $ | 11,782 |
At March 31, 2021, the payment status of our miscellaneous and notes receivables was as follows:
| Past Due |  |  |  |
| <30 Days |  | 30-90 Days |  | 90-180 Days |  | >180 Days |  | Total |  | Current |  | Total
| (In thousands)
Miscellaneous receivables: |  |  |  |  |  |  |  |  |  |  |  |  |
Current | $ | — |  |  | $ | 106 |  |  | $ | 71 |  |  | $ | 40 |  |  | $ | 217 |  |  | $ | 19,055 |  |  | $ | 19,272 |
Long-term | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,673 |  |  | 6,673 |
Total miscellaneous receivables | $ | — |  |  | $ | 106 |  |  | $ | 71 |  |  | $ | 40 |  |  | $ | 217 |  |  | $ | 25,728 |  |  | $ | 25,945 |
Notes receivable | $ | 2 |  |  | $ | 4 |  |  | $ | 3 |  |  | $ | 1,117 |  |  | $ | 1,126 |  |  | $ | 10,656 |  |  | $ | 11,782 |
Fair Value of Financial Instruments, Policy [Policy Text Block] | 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, Bank Credit Facility, and the mortgage 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.
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards Reference Rate Reform In March 2020, the FASB issued "Reference Rate Reform" to provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We currently have no hedging relationships and are evaluating our contracts and the optional expedients provided by the new standard.

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