v3.26.1
Commitments and Contingencies Level 1 (Notes)
6 Months Ended
Jun. 30, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure Commitments and Contingencies
Insurance Loss Reserves
We purchase various insurance products with high deductibles including: comprehensive general liability, morticians and cemetery professional liability, automobile liability, and workers’ compensation. The high-deductible insurance program means we are primarily self-insured for claims and associated costs and losses covered by these policies. As of June 30, 2026 and December 31, 2025, we had self-insurance reserves of $114.5 million and $108.4 million, respectively.
Litigation and Regulatory Matters
We are a party to various litigation and regulatory matters, investigations, and proceedings. Some of the more frequent routine litigations incidental to our business are based on operational claims and employment-related matters, including discrimination, harassment, and wage and hour laws and regulations. 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 vigorously defend ourselves in the matters described herein; however, if we determine that an unfavorable outcome is probable and can be reasonably estimated, or if we determine an amount for which we would be willing to settle the matter to avoid further costs and risk, we establish the necessary accruals. We hold certain insurance policies that may reduce cash outflows with respect to an adverse outcome of these matters. We accrue such insurance recoveries when they become probable of being paid and can be reasonably estimated.
Unclaimed Property Audits
We have received notices from auditors representing the unclaimed property departments of approximately forty states regarding the potential escheatment of preneed trust funds associated with unused preneed funeral and cemetery contracts ("Unused Preneed Trust Funds"). The states generally assert that all or a portion of these Unused Preneed Trust Funds may be subject to applicable unclaimed property or escheatment laws if the beneficiary and/or purchaser is deceased or presumed deceased and no merchandise or services have been provided. To date, audits have been resolved in nineteen states, with no additional property required to be reported. The remaining state audits are in various stages of the audit process.
Aside from these formal property audits, we may periodically review contracts to identify amounts that may be reportable under applicable unclaimed property laws. In limited circumstances, applicable laws permit us to retain trust earnings when property is escheated. As a result, our unclaimed property reporting has generated net trust fund income in each year from 2023 through 2026 as contracts are canceled and escheated.
We have reserved all of our rights, claims, and defenses with respect to these matters. Given the nature of the audits and the varying state laws involved, we are unable to reasonably estimate the total possible loss or range of loss, if any.