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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C.
FORM 11-K
( ) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED ___________________
or
(X) TRANSITION REPORT PURUSANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM JULY 1, 2000 TO DECEMBER 30, 2000
COMMISSION FILE NUMBER 1-6402-1
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THE SCI 401(k) RETIREMENT SAVINGS PLAN
(Full title of the plan)
SERVICE CORPORATION INTERNATIONAL
(Name of issuer of the securities held pursuant to the plan)
1929 ALLEN PARKWAY
HOUSTON, TEXAS 77019
(Address of the plan and address of issuer's principal executive offices)
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THE SCI 401(k) RETIREMENT SAVINGS PLAN
INDEX
Financial Statements
Statement of Net Assets Available for Benefits 3
Statement of Changes in Net Assets Available for Benefits 4
Notes to Financial Statements 5
Supplemental Schedule
Schedule of Assets (Held at End of Year) 8
Other Information
Signature 9
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THE SCI 401(k) RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 30, 2000
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Investments
Pooled separate accounts........................................................ $5,211,681
SCI common stock................................................................ 825,839
Participant loans............................................................... 23,021
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Total assets................................................................ 6,060,541
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Net assets available for benefits........................................... $6,060,541
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See notes to consolidated financial statements.
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THE SCI 401(k) RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Period from
July 1, 2000 to
December 30, 2000
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Additions to net assets attributed to:
Contributions:
Employer........................................................................... $ 858,025
Participants....................................................................... 5,403,561
Rollovers from other qualified plans............................................... 469,226
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Total contributions............................................................ 6,730,812
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Investment income:
Interest income.................................................................... 144
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Total investment income........................................................ 144
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Total additions............................................................ 6,730,956
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Deductions to net assets attributed to:
Net depreciation in the fair value of pooled separate accounts..................... 316,424
Net depreciation in the fair value of Company stock................................ 182,001
Distributions to participants...................................................... 165,192
Administrative expenses............................................................ 6,798
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Total deductions............................................................... 670,415
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Net increase........................................................................... 6,060,541
Net assets available for benefits:
Beginning of period................................................................ --
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End of period...................................................................... $6,060,541
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See notes to consolidated financial statements.
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THE SCI 401(k) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. PLAN DESCRIPTION
GENERAL
The following description of the SCI 401(k) Retirement Savings Plan (the Plan)
is provided for general information purposes only. Participants should refer to
the Summary Plan Description or the Plan Document for a more complete
description of the Plan's provisions.
The Plan, established July 1, 2000, is a defined contribution plan for the
exclusive benefit of Service Corporation International's (SCI or the Company)
United States employees. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA). The Plan's assets are held by
Massachusetts Mutual Life Insurance Company and participant accounts are
maintained by MassMutual Retirement Services.
CONTRIBUTIONS
Eligible employees can participate in the Plan after completing three months of
service. The election to contribute to the Plan is voluntary. Employees are
initially enrolled in the Plan, after meeting eligibility requirements, to
contribute 3% of pretax annual compensation, unless participation is
specifically rejected. Participants may contribute from 1% to 15% of pretax
annual compensation.
The Company contributes a matching amount up to 6% of the participant's pretax
annual compensation generally in Company common stock. The percentage of the
match is based on years of service with the Company and ranges from 75% to 135%
of the employee's eligible contribution. Additional amounts may be contributed
at the Company's discretion. Company contributions were made in Company stock
during the period ended December 30, 2000.
PARTICIPANT ACCOUNTS
Participant account balances are valued based upon the number of units of each
investment fund owned by the participants. Each participant's account is
credited with the participant's contribution and allocations of the Company's
contributions and plan earnings or losses. Forfeited balances of terminated
participant's non-vested accounts are used to reduce future Company
contributions.
VESTING
Participants are fully vested in their deferred salary and rollover
contributions. Participants are fully vested in Company contributions after
completing three years of service with the Company.
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PARTICIPANT LOANS
Participants may borrow from their accounts up to one half of the vested account
balance to a maximum of $50,000. The minimum amount that may be borrowed is
$1,000. Loans are to be repaid within five years, unless the loan is used to
purchase a primary residence. The loans are secured by the balance in the
participant's account and bear interest at 1% above the prime rate. A
participant may have no more than two loans outstanding at any one time.
PARTICIPANT DISTRIBUTIONS
The Plan provides for several different types of withdrawals by participants.
Participants who have reached age 59 1/2 may make in-service withdrawals.
Participants may make withdrawals before age 59 1/2 if they qualify for certain
hardship withdrawals. Upon termination of service with the Company or death, the
participant or beneficiary may receive a lump-sum amount equal to the vested
amount in the participant's account. A participant whose account balance exceeds
$5,000 may elect a deferred distribution until age 70 1/2. As of December 30,
2000, total deferred vested benefits were $16,696.
PLAN TERMINATION
The Company expects the Plan to continue indefinitely, however, it reserves the
right to terminate or amend the Plan to eliminate further benefits. If the Plan
is terminated, participants will become 100% vested and account balances will be
distributed by a lump-sum payment.
2. SUMMARY OF ACCOUNTING POLICIES
PRINCIPLES OF REPORTING
The financial statements and schedules have been prepared in accordance with
accounting principles generally accepted in the United States and the financial
reporting requirements of ERISA and are maintained on an accrual basis except
for participant distributions, which are reported when paid. For purposes of
reporting, the Plan has elected to defer an audit for the initial transition
period since the Plan is less than seven months old.
USE OF ESTIMATES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires Plan management to make
estimates and assumptions that may affect the amounts reported in the financial
statements and accompanying notes. As a result, actual results could differ from
those estimates.
INVESTMENTS
Investments are stated at fair value, which is determined by quoted markets
prices. Participant loans are valued at their outstanding balances, which
approximates fair value.
Net appreciation (depreciation) in the fair value of the Plan investments, which
consists of net realized and unrealized appreciation (depreciation), are
presented in the Statement of Changes in Net Assets Available for Benefits. This
appreciation (depreciation) is allocated to participants based upon their
proportionate share of assets in each investment fund.
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3. INVESTMENTS
Investments that comprised 5% or more of the Plan's net assets available at
December 30, 2000 are as follows:
December 30, 2000
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JCC Balanced Fund (Janus)........................................... $ 931,030
MassMutual Small Cap Growth Fund.................................... 988,335
MassMutual International Equity Fund................................ 716,762
MassMutual Core Bond Fund........................................... 331,543
MassMutual Ultra Fund (American Century)............................ 1,113,203
MassMutual Large Cap Value Fund..................................... 872,575
SCI Common Stock.................................................... 825,838
4. INCOME TAXES
A determination letter is pending from the Internal Revenue Service declaring
that the Plan qualifies under Section 401(a) of the Internal Revenue Code as
exempt from income taxes. The Plan administrator believes the Plan is designed
and being operating in compliance with the requirements of Section 401(a) of the
Internal Revenue Code.
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THE SCI 401(k) RETIREMENT PLAN
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
EIN: 74-1488375 PIN: 002
Identity of issue, borrower, lessor or
similar party Description of investment Current value
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*Massachusetts Mutual Life
Insurance Co.............................. JCC Balanced Fund (Janus) $ 931,030
*Massachusetts Mutual Life
Insurance Co.............................. MassMutual Small Cap Growth Fund 988,335
*Massachusetts Mutual Life
Insurance Co.............................. MassMutual International Equity Fund 716,762
*Massachusetts Mutual Life
Insurance Co.............................. MassMutual Core Bond Fund 331,543
*Massachusetts Mutual Life
Insurance Co.............................. MassMutual Government Money Market 258,234
*Massachusetts Mutual Life
Insurance Co.............................. MassMutual Ultra Fund (American Century) 1,113,203
*Massachusetts Mutual Life
Insurance Co.............................. MassMutual Large Cap Value Fund 872,575
*Service Corporation
International............................. SCI Common Stock 825,838
*Participant Loans............................ Loans with interest rates of 10.5% 23,021
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$6,060,541
*Denotes a party-in-interest as defined by ERISA.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the trustee
(or other persons who administer the employee benefit plan) have duly caused
this annual report to be signed by the undersigned here unto duly authorized.
The SCI 401(k) Retirement Plan
Date: June 28, 2001 By: SCI Management L.P., a Delaware
limited partnership (and administrator
of the Plan)
By: SCI Administrative Services, LLC, a
Delaware limited liability company,
its General Partner
By: /s/ HELEN DUGAND
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Helen Dugand
President
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