MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Introduction
Trust and Escrow Investments
Results of Operations

Year Ended October 31, 2000 Compared to Year Ended October 31,1999

- Funeral Segment, 2000 compared to 1999
- Cemetery Segment, 2000 compared to 1999
- Other

Year Ended October 31, 1999 Compared to Year Ended October 31,1998

- Funeral Segment, 1999 compared to 1998
- Cemetery Segment, 1999 compared to 1998
- Other

Liquidity and Capital Resources
Inflation
Recent Accounting Standards
Forward-Looking Statements
Cautionary Statements
Quantitative and Qualitative Disclosures About Market Risk

- Marketable Equity Securities
- Foreign Currency
- Interest

Consolidated Statements of Earnings

Consolidated Balance Sheets

- Assets
- Liabilities and Shareholders’ Equity

Consolidated Statements of Shareholders’ Equity

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statement

- (1) The Company
- (2) Summary of Significant Accounting Policies
- (3) Change in Accounting Principles
- (4) Acquisition of Subsidiaries
- (5) Prearranged Funeral Services
- (6) Cemetery Trust Funds and Escrow Accounts
- (7) Cash and Cash Equivalent Investments
- (8) Marketable Securities and Long-Term Investments
- (9) Receivables
- (10) Inventories and Cemetery Property
- (11) Long-Term Debt
- (12) Reconciliation of Basic and Diluted Per Share Data
- (13) Income Taxes
- (14) Benefit Plans
- (15) Shareholders Rights Plan
- (16) Commitments, Contingencies and Related Party Transactions
- (17) Segment Data
- (18) Quarterly Financial Data (Unedited)
- (19) Subsequent Events

Report of Independent Accountants

Selected Consolidated Financial and Operating Data