XML 38 R23.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Commitments and Contingencies | 12 Months Ended
--- | ---
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases We lease certain office facilities, certain funeral homes and equipment under operating leases with original terms ranging from one to nineteen years. Certain of these leases provide for an annual rent adjustment and contain options for renewal. Rent expense totaled $6.1 million, $6.1 million and $6.0 million for the years ended December 31, 2016, 2017 and 2018, respectively. Assets acquired under capital leases are included in Property, plant and equipment in our accompanying Consolidated Balance Sheet in the amount of $6.6 million in 2017 and $6.2 million in 2018, net of accumulated depreciation. Capital lease obligations are included in the current portion and non-current portion of long-term debt and capital lease obligations in our Consolidated Balance Sheet. At December 31, 2018, future minimum lease payments under non-cancelable lease agreements were as follows (in millions):
| Future Minimum Lease Payments
| Operating Leases |  | Capital Leases
Years ending December 31, |  |  |
2019 | $ | 3.7 |  |  | $ | 0.9 |
2020 | 3.2 |  |  | 0.8 |
2021 | 2.7 |  |  | 0.8 |
2022 | 0.5 |  |  | 0.8 |
2023 | 0.3 |  |  | 0.9 |
Thereafter | 1.1 |  |  | 7.1 |
Total future minimum lease payments | $ | 11.5 |  |  | $ | 11.3 |
Less: amount representing interest (rates ranging from 7.0% to 11.5%) |  |  | (4.9 | )
Less: current portion of obligations under capital leases |  |  | (0.3 | )
Long-term obligations under capital leases |  |  | $ | 6.1 |
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 future 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 five years and provide for bi-weekly or monthly payments. We have employment agreements with certain of our executive officers and senior leadership. These agreements are generally for three to five years and provide for participation in various incentive compensation arrangements. These agreements generally renew automatically on an annual basis after their initial term has expired. At December 31, 2018, 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 (in millions):
| Non-Compete |  | Consulting |  | Employment(a) |  | Total
Years ending December 31, |  |  |  |  |  |  |
2019 | $ | 1.9 |  |  | $ | 0.9 |  |  | $ | 1.9 |  |  | $ | 4.7 |
2020 | 1.6 |  |  | 0.7 |  |  | 1.2 |  |  | 3.5 |
2021 | 1.5 |  |  | 0.6 |  |  | 0.9 |  |  | 3.0 |
2022 | 1.1 |  |  | 0.4 |  |  | 0.8 |  |  | 2.3 |
2023 | 0.7 |  |  | 0.2 |  |  | 0.7 |  |  | 1.6 |
Thereafter | 1.3 |  |  | — |  |  | 0.2 |  |  | 1.5 |
Total | $ | 8.1 |  |  | $ | 2.8 |  |  | $ | 5.7 |  |  | $ | 16.6 |
(a) | Melvin C. Payne, our Chairman of the Board and Chief Executive Officer, has an employment agreement that does not renew after the initial term of five years.
401(K) Plan We sponsor a defined contribution plan (401K) for the benefit of our employees. Matching contributions and plan administrative expenses totaled $1.8 million, $1.9 million and $2.1 million for 2016, 2017 and 2018, respectively. We do not offer any post-retirement or post-employment benefits. 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. 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. Faria, et al. v. Carriage Funeral Holdings, Inc., Superior Court of California, Contra Costa County, Case No. MSC18-00606. On March 26, 2018, six Plaintiffs filed a putative class action against Carriage Funeral Holdings, Inc., our subsidiary, their alleged employer, on behalf of themselves and all similarly situated current and former employees. Plaintiffs seek monetary damages and claim that Carriage Funeral Holdings, Inc. failed to pay minimum wages, provide meal and rest breaks, provide accurately itemized wage statements, reimburse employees for required expenses, and provide wages when due. Plaintiffs also claim that Carriage Funeral Holdings, Inc. violated California Business and Professions Code §17200 et seq. On June 5, 2018, Plaintiffs filed a First Amended Complaint to add a claim under the California Private Attorney General Act. On October 23, 2018, the parties mediated this matter and executed a Memorandum of Understanding for class settlement. In February 2019, a Class Action Settlement Agreement was fully executed, which will be submitted to the Court for preliminary approval. We anticipate that the Court will preliminarily approve the Class Action Settlement Agreement in 2019. If the Class Action Settlement Agreement is preliminarily approved by the Court, the class claims process will then proceed. At December 31, 2018, we have accrued $650,000 for the estimated settlement amount related to this case.

X
- References No definition available. + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI http://asc.fasb.org/topic&trid=2127136 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration