7) Business Segment Information

6 Months Ended

Jun. 30, 2020

Disclosure Text Block [Abstract]

7) Business Segment Information

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, 2019. 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
June 30, 2020
Revenues from external customers	$   37,788,593	$   5,306,305	$   75,566,844	$                -	$   118,661,742
Intersegment revenues	1,816,185	89,799	190,701	(2,096,685)	-
Segment profit before income taxes	3,670,369	1,548,452	21,974,935	-	27,193,756
For the Three Months Ended
June 30, 2019
Revenues from external customers	$   28,607,056	$   4,543,007	$   35,295,119	$                -	$     68,445,182
Intersegment revenues	1,080,347	113,622	124,921	(1,318,890)	-
Segment profit before income taxes	1,219,001	1,023,782	2,381,060	-	4,623,843
For the Six Months Ended
June 30, 2020
Revenues from external customers	$   70,994,355	$   9,320,001	$ 117,956,335	$                -	$   198,270,691
Intersegment revenues	2,724,353	193,313	391,033	(3,308,699)	-
Segment profit before income taxes	601,202	1,653,253	26,413,535	-	28,667,990
Identifiable Assets	1,206,815,231	75,048,428	346,286,603	(110,608,108)	1,517,542,154
Goodwill	2,765,570	754,018	-	-	3,519,588
Total Assets	1,209,580,801	75,802,446	346,286,603	(110,608,108)	1,521,061,742
For the Six Months Ended
June 30, 2019
Revenues from external customers	$   59,112,424	$   8,902,292	$   61,924,301	$                -	$   129,939,017
Intersegment revenues	1,975,719	230,273	251,279	(2,457,271)	-
Segment profit before income taxes	3,304,342	2,208,647	1,543,013	-	7,056,002
Identifiable Assets	929,442,236	87,450,987	202,723,000	(116,673,063)	1,102,943,160
Goodwill	2,765,570	754,018	-	-	3,519,588
Total Assets	932,207,806	88,205,005	202,723,000	(116,673,063)	1,106,462,748