7) Business Segments

9 Months Ended

Sep. 30, 2019

Notes

7) Business Segments

7)      Business Segment Information

Description of Products and Services by Segment

The Company has three reportable business segments: life insurance, cemetery and mortuary, and mortgage. The Company’s life insurance segment consists of life insurance premiums and operating expenses from the sale of insurance products sold by the Company’s independent agency force and net investment income derived from investing policyholder and segment surplus funds. The Company’s cemetery and mortuary segment consists of revenues and operating expenses from the sale of at-need cemetery and mortuary merchandise and services at its mortuaries and cemeteries, pre-need sales of cemetery spaces after collection of 10% or more of the purchase price and the net investment income from investing segment surplus funds. The Company’s mortgage segment consists of fee income and expenses from the originations of residential mortgage loans and interest earned and interest expenses from warehousing loans held for sale.

Measurement of Segment Profit or Loss and Segment Assets

The accounting policies of the reportable segments are the same as those described in the Significant Accounting Principles of the Form 10-K for the year ended December 31, 2018. Intersegment revenues are recorded at cost plus an agreed upon intercompany profit, and are eliminated upon consolidation.

Factors Management Used to Identify the Enterprise’s Reportable Segments

The Company’s reportable segments are business units that are managed separately due to the different products provided and the need to report separately to the various regulatory jurisdictions. The Company regularly reviews the quantitative thresholds and other criteria to determine when other business segments may need to be reported.

	Life Insurance	Cemetery/ Mortuary	Mortgage	Intercompany Eliminations	Consolidated
For the Three Months Ended
September 30, 2019
Revenues from external customers	$  29,824,686	$   3,570,419	$   41,984,554	$                -	$     75,379,659
Intersegment revenues	1,465,778	106,638	120,891	(1,693,307)	-
Segment profit before income taxes	1,263,836	213,198	3,282,788	-	4,759,822
		-
For the Three Months Ended
September 30, 2018
Revenues from external customers	$  28,962,288	$   4,008,943	$   34,251,862	$                -	$     67,223,093
Intersegment revenues	1,108,093	106,637	117,746	(1,332,476)	-
Segment profit before income taxes	2,192,036	781,875	(762,113)	-	2,211,798
For the Nine Months Ended
September 30, 2019
Revenues from external customers	$  88,937,110	$ 12,472,711	$ 103,908,855	$                -	$   205,318,676
Intersegment revenues	3,441,497	336,911	372,170	(4,150,578)	-
Segment profit before income taxes	4,568,178	2,421,845	4,825,801	-	11,815,824
Identifiable Assets	941,739,161	84,250,592	243,272,631	(110,132,588)	1,159,129,796
Goodwill	2,765,570	754,018	-	-	3,519,588
Total Assets	944,504,731	85,004,610	243,272,631	(110,132,588)	1,162,649,384
For the Nine Months Ended
September 30, 2018
Revenues from external customers	$ 109,198,662	$ 13,060,357	$   95,905,309	$                -	$   218,164,328
Intersegment revenues	2,915,379	322,675	383,625	(3,621,679)	-
Segment profit before income taxes	28,840,882	3,714,304	(4,993,976)	-	27,561,210
Identifiable Assets	920,458,422	91,084,393	178,089,215	(128,148,062)	1,061,483,968
Goodwill	2,765,570	-	-	-	2,765,570
Total Assets	923,223,992	91,084,393	178,089,215	(128,148,062)	1,064,249,538