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Commitments and Contingencies | 12 Months Ended
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Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases We lease certain office facilities, certain funeral homes, vehicles and equipment under operating leases with original terms ranging from one to twelve years. Certain of these leases provide for an annual adjustment and contain options for renewal. Rent expense totaled $6.6 million, $6.4 million and $6.5 million for the years ended December 31, 2013, 2014 and 2015, respectively. Assets acquired under capital leases are included in property, plant and equipment in our accompanying Consolidated Balance Sheets in the amount of $3.1 million in 2014 and $2.9 million in 2015, net of accumulated depreciation. Capital lease obligations are included in current and long-term debt as indicated below. At December 31, 2015, future minimum lease payments under non-cancelable lease agreements were as follows:
| Future Minimum Lease Payments
| Operating Leases |  | Capital Leases
| (in thousands)
Years ending December 31, |  |  |
2016 | $ | 4,790 |  |  | $ | 477 |
2017 | 4,111 |  |  | 483 |
2018 | 3,174 |  |  | 421 |
2019 | 2,900 |  |  | 388 |
2020 | 2,041 |  |  | 334 |
Thereafter | 1,718 |  |  | 3,329 |
Total future minimum lease payments | $ | 18,734 |  |  | $ | 5,432 |
Less: amount representing interest (rates ranging from 7% to 11.5%) |  |  | (2,334 | )
Less: current portion of obligations under capital leases |  |  | (223 | )
Long-term obligations under capital leases |  |  | $ | 2,875 |
Non-Compete, Consulting and Employment Agreements We have various non-compete agreements with former owners and employees. These agreements are generally for one to ten years and provide for periodic payments over the term of the agreements. We have various consulting agreements with former owners of businesses we have acquired. Payments for such agreements are generally not made in advance. These agreements are generally for one to ten years and provide for bi-weekly or monthly payments. We have employment agreements with our executive officers and certain senior leadership. These agreements are generally for three or four years and provide for participation in various incentive compensation arrangements. These agreements automatically renew on an annual basis after their initial term has expired. At December 31, 2015, the maximum estimated future cash commitments under these agreements with remaining commitment terms, and with original terms of more than one year, are as follows:
| Non-Compete |  | Consulting |  | Employment |  | Total
| (in thousands)
Years ending December 31, |  |  |  |  |  |  |
2016 | $ | 1,612 |  |  | $ | 1,366 |  |  | $ | 2,135 |  |  | $ | 5,113 |
2017 | 1,296 |  |  | 1,281 |  |  | 1,205 |  |  | 3,782 |
2018 | 986 |  |  | 673 |  |  | 205 |  |  | 1,864 |
2019 | 776 |  |  | 440 |  |  | — |  |  | 1,216 |
2020 | 500 |  |  | 307 |  |  | — |  |  | 807 |
Thereafter | 458 |  |  | 235 |  |  | — |  |  | 693 |
| $ | 5,628 |  |  | $ | 4,302 |  |  | $ | 3,545 |  |  | $ | 13,475 |
401(K) Plan We sponsor a defined contribution plan (401K) for the benefit of our employees. Matching contributions and plan administrative expenses totaled $1.4 million, $1.6 million and $1.7 million for 2013, 2014 and 2015, respectively. We do not offer any post-retirement or post-employment benefits. Other Commitments We have an agreement to outsource the processing of transactions for the cemetery business and certain accounting activities. This agreement can be terminated for various reasons upon written notification from either us or the contractor. Payments vary based on the level of resources provided. We incurred costs of approximately $1.9 million each year for services rendered under this agreement in the years ended December 31, 2013, 2014 and 2015, respectively, of which we paid approximately $1.0 million each year, with the remainder paid by the trust. In November 2015, we notified the contractor of our intent to terminate the contract effective April 30, 2016. Upon which time, all processing will return in-house and we will retain most of the resources that currently reside in our home office. We believe we will not incur additional costs under the new arrangement. Litigation We are a party to various litigation matters and proceedings. For each of our outstanding legal matters, we evaluate the merits of the case, our exposure to the matter, possible legal or settlement strategies, and the likelihood of an unfavorable outcome. We intend to defend ourselves in the lawsuits described herein. If we determine that an unfavorable outcome is probable and can be reasonably estimated, we establish the necessary accruals. We hold certain insurance policies that may reduce cash outflows with respect to an adverse outcome of certain of these litigation matters. Leathermon, et al. v. Grandview Memorial Gardens, Inc., et al., United States District Court, Southern District of Indiana, Case No. 4:07-cv-137. On August 17, 2007, five plaintiffs filed a putative class action against the current and past owners of Grandview Cemetery in Madison, Indiana, including our subsidiaries that owned the cemetery from January 1997 until February 2001, on behalf of all individuals who purchased cemetery and burial goods and services at Grandview Cemetery. Plaintiffs sought monetary damages and claim that the cemetery owners performed burials negligently, breached Plaintiffs’ contracts and made misrepresentations regarding the cemetery. The Plaintiffs also allege that the claims occurred prior, during and after we owned the cemetery. On October 15, 2007, the case was removed from Jefferson County Circuit Court, Indiana to the Southern District of Indiana. On April 24, 2009, shortly before the Defendants had been scheduled to file their briefs in opposition to Plaintiffs’ motion for class certification, Plaintiffs moved to amend their complaint to add new class representatives and claims, while also seeking to abandon other claims. We, as well as several other Defendants, opposed Plaintiffs’ motion to amend their complaint and add parties. In April 2009, two Defendants moved to disqualify Plaintiffs’ counsel from further representing Plaintiffs in this action. On June 30, 2010, the court granted Defendants’ motion to disqualify Plaintiffs’ counsel. On May 6, 2010, Plaintiffs filed a petition for writ of mandamus with the Seventh Circuit Court of Appeals seeking relief from the trial court’s order of disqualification of counsel. On May 19, 2010, the Defendants responded to the petition of mandamus. On July 8, 2010, the Seventh Circuit denied Plaintiffs’ petition for writ of mandamus. Thus, pursuant to the trial court’s order, Plaintiffs were given 60 days from July 8, 2010 in which to retain new counsel to prosecute this action on their behalf. Plaintiffs retained new counsel and Plaintiffs’ counsel moved for leave to amend both the class representatives and the allegations stated within the complaint. Defendants filed oppositions to such amendments. The court issued an order permitting the Plaintiffs to proceed with amending the class representatives and a portion of their claims; however, certain of Plaintiffs’ claims have been dismissed. The parties reached a proposed class settlement, and the court granted its preliminary approval of such settlement by order dated March 19, 2014. Notice of the class settlement was provided pursuant to the Preliminary Order Approving Class Action Settlement, and no settlement class members opted out of the class nor objected to the terms of the settlement. The court issued its final approval of the settlement on June 23, 2014. Pursuant to the terms of the final settlement agreement, we have funded our obligations to the settlement class members by transferring the necessary funds to a settlement account; and the designated claims administrator is now administering the settlement in accordance with its terms.

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