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Acquisition Level 1 (Notes) | 12 Months Ended
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Dec. 31, 2022
Business Combinations [Abstract] |
Business Combination Disclosure [Text Block] | Acquisitions In the fourth quarter of 2022, we acquired 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; and •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 acquisitions (in thousands):
Other current assets | $ | 241 |  |  |  |
Cemetery property | 5,840 |  |  |  |
Property and equipment, net | 19,194 |  |  |  |
Preneed receivables, net and trust investments | 8,099 |  |  |  |
Indefinite-lived intangible assets | 17,149 |  |  |  |
Deferred charges and other assets | 158 |  |  |  |
Cemetery perpetual care trust investments | 6,461 |  |  |  |
Goodwill | 26,098 |  |  |  |
Total assets acquired | 83,240 |  |  |  |
Current liabilities | 439 |  |  |  |
Deferred revenue and deferred receipts held in trust | 3,183 |  |  |  |
Care trusts' corpus | 6,461 |  |  |  |
Other liabilities | 1,937 |  |  |  |
Total liabilities assumed | 12,020 |  |  |  |
Net assets acquired | $ | 71,220 |  |  |  |
Purchase accounting is preliminary because 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. Of the $26.1 million in goodwill recognized, all of which is deductible for tax purposes, $11.3 million was allocated to our cemetery segment and $14.8 million was allocated to our funeral segment. The identified intangible assets are indefinite lived tradenames with a fair value of $17.1 million. We incurred acquisition costs of $0.2 million, which is included in Corporate 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. In December 2021, we acquired twenty-one funeral homes and one cemetery in two states as part of two acquisitions (the "Ohio and California Businesses") for $94.8 million in cash. This amount includes the use of $6.1 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; and •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 acquisitions (in thousands):
Other current assets | $ | 140 |  |  |  |
Cemetery property | 2,918 |  |  |  |
Property and equipment, net | 36,768 |  |  |  |
Preneed receivables, net and trust investments | 7,732 |  |  |  |
Finite-lived intangible assets | 3,900 |  |  |  |
Indefinite-lived intangible assets | 24,734 |  |  |  |
Deferred charges and other assets | 128 |  |  |  |
Cemetery perpetual care trust investments | 1,484 |  |  |  |
Goodwill | 29,683 |  |  |  |
Total assets acquired | 107,487 |  |  |  |
Current liabilities | 660 |  |  |  |
Deferred revenue and deferred receipts held in trust | 7,204 |  |  |  |
Care trusts' corpus | 1,484 |  |  |  |
Other liabilities | 3,336 |  |  |  |
Total liabilities assumed | 12,684 |  |  |  |
Net assets acquired | $ | 94,803 |  |  |  |
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 $29.7 million in goodwill recognized, all of which is deductible for tax purposes, $1.5 million was allocated to our cemetery segment and $28.2 million was allocated to our funeral segment. The identified intangible assets comprise the following:
| Useful Life | Fair Value
| (Years) | (In thousands)
Preneed customer relationships to insurance claims | 10 | $ | 3,900 |
Tradenames | Indefinite | 24,734 |
Total intangible assets |  | $ | 28,634 |
We incurred acquisition costs of $0.3 million, which is included in Corporate general and administrative expenses in our Consolidated Statement of Operations for the year ended December 31, 2021. The Ohio and California Businesses contributed revenue of $1.1 million and net income of $0.3 million from acquisition through December 31, 2021. Excluding the acquisitions described above, we spent $31.2 million, $26.3 million, and $64.2 million, net of cash acquired, for several business acquisitions, and $17.1 million, $26.6 million, and $52.1 million, net of cash acquired, for several real estate acquisitions for the three years ended December 31, 2022, 2021, and 2020, respectively. These amounts include the use of $21.7 million, $10.9 million, and $55.1 million in IRS Section 1031 exchange funds for the three years ended December 31, 2022, 2021, and 2020, respectively. 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 Gains on divestitures and impairment charges, net, which consist of the following:
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In thousands)
Gains on divestitures, net | $ | 10,923 |  |  | $ | 28,573 |  |  | $ | 11,962 |
Impairment losses | (961) |  |  | (3,404) |  |  | (4,953) |
Gains on divestitures and impairment charges, net | $ | 9,962 |  |  | $ | 25,169 |  |  | $ | 7,009 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI https://asc.fasb.org/topic&trid=2303972 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 5 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4946-128472 + Details
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