What Changed
Risk factors · Feb 13, 2025 → Feb 12, 202613 added · 9 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
- FORM 10-K 15 PART I • Pay dividends, distributions, and other payments in respect of our capital stock; • Purchase our capital stock in the open market; • Make investments, loans, or advances; • Repay indebtedness or amend the agreements relating thereto; • Create restrictions on our ability to receive distributions from subsidiaries; and • Change our lines of business.
- In addition, increased governmental or regulatory scrutiny or legal claims related to AI could result in additional costs or liabilities, even where our use of AI is limited in our information technology systems and processes.
- We may use artificial intelligence (“AI”) technologies in limited aspects of our operations and information technology systems.
- AI technologies are evolving and may give rise to operational, legal, regulatory, data security, and privacy risks.
- The covenants limit, among other things, our and our subsidiaries’ ability to: • Incur additional indebtedness (including guarantee obligations); • Create liens on assets; • Engage in certain transactions with affiliates; • Enter into sale-leaseback transactions; • Engage in mergers, acquisitions, liquidations, and dissolutions; • Sell assets;
- If we are unable to maintain a qualified and productive sales force and team of licensed funeral professionals, our revenues may decline and our cash available for distribution may decrease. 16 Service Corporation International PART I We use a combination of insurance, self-insurance, and large deductibles in managing our exposure to certain inherent risks; therefore, we could be exposed to unexpected costs that could negatively affect our financial performance.
- Such technologies may produce inaccurate, misleading, or biased outputs or be improperly used by employees, which could adversely affect our business, reputation, financial condition, or results of operations.
- As of December 31, 2025, no such charge was required in any reported period.
- Declines in overall economic conditions beyond our control could reduce future potential earnings and cash flows and could result in future impairments to goodwill and/or other intangible assets.
- These obligations could further increase the risks described above. 18 Service Corporation International PART I Risks Related to Our Industry The funeral and cemetery industry is competitive.
- These unanticipated changes could have a material adverse effect on our financial condition, results of operations, and cash flows.
- As a result of inflation, we may experience modest cost increases from certain vendors and suppliers on merchandise and goods.
No longer disclosed
- FORM 10-K 17 PART I • It could increase our interest expense if interest rates in general increase because a portion of our indebtedness, including all of our indebtedness under our Bank Credit Facilities, bears interest at floating rates. • It could make it more difficult for us to satisfy our obligations with respect to our indebtedness, and any failure to comply with the obligations of any of our debt instruments, including any financial and other restrictive covenants, could result in an event of default under the agreements governing our other indebtedness which, if not cured or waived, could result in the acceleration of our indebtedness.
- FORM 10-K 15 PART I • Create restrictions on our ability to receive distributions from subsidiaries; and • Change our lines of business.
- As a result of inflation, we have experienced modest cost increases from certain vendors and suppliers on merchandise and goods and may continue to experience additional cost increases in the future, which could be of greater magnitude than those experienced to date.
- The covenants limit, among other things, our and our subsidiaries’ ability to: • Incur additional indebtedness (including guarantee obligations); • Create liens on assets; • Engage in certain transactions with affiliates; • Enter into sale-leaseback transactions; • Engage in mergers, liquidations, and dissolutions; • Sell assets; • Pay dividends, distributions, and other payments in respect of our capital stock; • Purchase our capital stock in the open market; • Make investments, loans, or advances; • Repay indebtedness or amend the agreements relating thereto;
- These unanticipated changes could have a material adverse effect on our financial condition, results of operations, and cash flows. 16 Service Corporation International PART I Declines in overall economic conditions beyond our control could reduce future potential earnings and cash flows and could result in future impairments to goodwill and/or other intangible assets.
- We use a combination of insurance, self-insurance, and large deductibles in managing our exposure to certain inherent risks; therefore, we could be exposed to unexpected costs that could negatively affect our financial performance.