7) Business Segments

9 Months Ended

Sep. 30, 2017

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/A for the year ended December 31, 2016. 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, 2017
Revenues from external customers	$  25,229,759	$   2,988,137	$   43,753,955	$                -	$   71,971,851
Intersegment revenues	3,333,593	116,290	86,580	(3,536,463)	-
Segment profit before income taxes	522,574	237,108	378,335	-	1,138,017
For the Three Months Ended
September 30, 2016
Revenues from external customers	$  24,972,397	$   2,900,917	$   55,075,343	$                -	$   82,948,657
Intersegment revenues	3,318,369	107,745	79,164	(3,505,278)	-
Segment profit before income taxes	2,139,702	54,891	4,378,937	-	6,573,530
For the Nine Months Ended
September 30, 2017
Revenues from external customers	$  77,112,117	$   9,907,037	$ 128,953,552	$                -	$ 215,972,706
Intersegment revenues	9,299,671	338,745	268,764	(9,907,180)	-
Segment profit before income taxes	4,824,654	1,331,896	1,873,536	-	8,030,086
Identifiable Assets	853,298,860	94,716,098	190,202,990	(133,079,207)	1,005,138,741
Goodwill	2,765,570	-	-	-	2,765,570
Total Assets	856,064,430	94,716,098	190,202,990	(133,079,207)	1,007,904,311
For the Nine Months Ended
September 30, 2016
Revenues from external customers	$  70,616,968	$ 10,045,384	$ 151,829,880	$                -	$ 232,492,232
Intersegment revenues	9,780,803	616,532	239,503	(10,636,838)	-
Segment profit before income taxes	5,785,464	1,283,553	11,561,479	-	18,630,496
Identifiable Assets	797,486,493	95,414,964	194,469,525	(138,809,339)	948,561,643
Goodwill	2,765,570	-	-	-	2,765,570
Total Assets	800,252,063	95,414,964	194,469,525	(138,809,339)	951,327,213