Stewart's Improving Transparency

Stewart will now expense preneed selling costs in the period incurred rather than defer and amortize over future periods as funerals are performed. This announcement comes on the heels of similar actions taken by larger industry players, like Service Corporation SCI. Usually, we are wary of accounting changes, but in this case, industry participants are making their financial statements more transparent. We think this treatment more accurately reflects the realities of the preneed funeral business. Developments like this improve our take on management's stewardship. Stewart and Service Corporation continue to rate poorly in other areas, however, which keeps their stewardship grades at F.