XML 165 R21.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 14: Business Segment Information
 12 Months Ended
Dec. 31, 2013
Notes  
Note 14: Business Segment Information

 

14)    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 loan segment consists of loan originations fee income and expenses from the originations of residential mortgage loans and interest earned and interest expenses from warehousing pre-sold loans before the funds are received from financial institutional investors.

 

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. 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 offer different products and are managed separately due to the different products and the need to report to the various regulatory jurisdictions.

 

 

 

 

2013

 

Life

 

Cemetery/

 

 

Reconciling

 

 

 Insurance

 

 Mortuary

 

 Mortgage

 

 Items

 

Consolidated

 Revenues:

 

 

 

 

 

 

 

 

 

From external sources:

 

 

 

 

 

 

 

 

 

 Revenue from customers

 $       51,322,567

 

 $       12,000,375

 

 $     127,950,021

 

 $                         -

 

 $     191,272,963

 Net investment income

          15,877,784

 

               268,923

 

            4,207,295

 

                     -

 

          20,354,002

Realized gains (losses) on

 

 

 

 

 

 

 

 

 

 investments and other assets

            1,402,352

 

                 15,699

 

                    -

 

                     -

 

            1,418,051

 Other than temporary impairments

             (336,226)

 

                    -

 

                    -

 

                     -

 

             (336,226)

 Other revenues

               538,009

 

                 94,703

 

            1,973,518

 

                     -

 

            2,606,230

 Intersegment revenues:

 

 

 

 

 

 

 

 

 

 Net investment income

            7,220,282

 

            1,356,825

 

               262,074

 

            (8,839,181)

 

                           -

 Total revenues

          76,024,768

 

          13,736,525

 

        134,392,908

 

            (8,839,181)

 

        215,315,020

Expenses:

 

 

 

 

 

 

 

 

 

 Death and other policy benefits

          28,534,936

 

                    -

 

                    -

 

                     -

 

          28,534,936

 Increase in future policy benefits

          19,594,890

 

                    -

 

                    -

 

                     -

 

          19,594,890

Amortization of deferred policy and preneed acquisition costs and

 

 

 

 

 

 

 

 

 

value of business acquired

            4,811,300

 

               370,537

 

                    -

 

                     -

 

            5,181,837

 Depreciation

               401,893

 

               426,641

 

               792,535

 

                     -

 

            1,621,069

General, administrative and

 

 

 

 

 

 

 

 

 

other costs:

 

 

 

 

 

 

 

 

 

 Intersegment

                 24,000

 

               141,367

 

               199,193

 

               (364,560)

 

                           -

 Provision for loan losses

                    -

 

                    -

 

            1,751,472

 

                     -

 

            1,751,472

Costs related to funding mortgage

 

 

 

 

 

 

 

 

 

   loans

                    -

 

                    -

 

            6,635,290

 

                     -

 

            6,635,290

 Other

          18,753,753

 

          10,467,717

 

        110,096,627

 

                            1

 

        139,318,098

Interest expense:

 

 

 

 

 

 

 

 

 

 Intersegment

               802,352

 

            1,664,096

 

            6,008,174

 

            (8,474,622)

 

                           -

 Other

               233,343

 

               443,133

 

            2,177,225

 

                     -

 

            2,853,701

 Total benefits and expenses

          73,156,467

 

          13,513,491

 

        127,660,516

 

            (8,839,181)

 

        205,491,293

 Earnings (losses) before income    taxes

 $         2,868,301

 

 $            223,034

 

 $         6,732,392

 

 $                         -

 

 $         9,823,727

 Income tax (expense) benefit

               399,304

 

                    -

 

          (2,637,110)

 

                     -

 

          (2,237,806)

 Net earnings (losses)

 $         3,267,605

 

 $            223,034

 

 $         4,095,282

 

 $                         -

 

 $         7,585,921

 

 

 

 

 

 

 

 

 

 

 Identifiable assets

 $     591,465,834

 

 $     114,454,631

 

 $       50,250,677

 

 $     (137,413,688)

 

 $     618,757,454

 

 

 

 

 

 

 

 

 

 

 Goodwill

 $            391,848

 

 $            285,191

 

 $                        -

 

 $                         -

 

 $            677,039

 

 

 

 

 

 

 

 

 

 

 Expenditures for long-lived assets

 $            659,259

 

 $         1,100,195

 

 $         1,810,879

 

 $                         -

 

 $         3,570,333

 

 

2012

Life

 

Cemetery/

 

 

Reconciling

 

 

Insurance

Mortuary

Mortgage

Items

Consolidated

Revenues:

From external sources:

Revenue from customers

 $       49,550,904

 $       10,864,497

 $     150,553,261

 $                         -

 $     210,968,662

Net investment income

          16,616,541

               333,625

            4,965,411

                     -

          21,915,577

Realized gains (losses) on

investments and other assets

            1,415,556

                   8,954

                    -

                     -

            1,424,510

Other than temporary impairments

          (1,207,632)

                    -

                    -

                     -

          (1,207,632)

Other revenues

               482,325

               136,189

               540,538

                     -

            1,159,052

Intersegment revenues:

Net investment income

            7,570,979

            1,435,891

               294,980

            (9,301,850)

                           -

Total revenues

          74,428,673

          12,779,156

        156,354,190

            (9,301,850)

        234,260,169

Expenses:

Death and other policy benefits

          24,246,088

                    -

                    -

                     -

          24,246,088

Increase in future policy benefits

          21,435,191

                    -

                    -

                     -

          21,435,191

Amortization of deferred policy and preneed acquisition costs and

value of business acquired

            5,137,586

               311,843

                    -

                     -

            5,449,429

Depreciation

               315,960

               426,006

               516,131

                     -

            1,258,097

General, administrative and

other costs:

Intersegment

                 24,000

               102,726

               137,696

               (264,422)

                           -

Provision for loan losses

                    -

                    -

            4,239,418

                     -

            4,239,418

Costs related to funding mortgage

  loans

                    -

                    -

            6,931,045

                     -

            6,931,045

Other

          17,824,800

            9,582,499

        118,198,014

                            2

        145,605,315

Interest expense:

Intersegment

               694,442

            1,681,987

            6,661,001

            (9,037,430)

                           -

Other

               159,659

               455,449

            3,129,185

                     -

            3,744,293

Total benefits and expenses

          69,837,726

          12,560,510

        139,812,490

            (9,301,850)

        212,908,876

Earnings (losses) before income    taxes

 $         4,590,947

 $            218,646

 $       16,541,700

 $                         -

 $       21,351,293

Income tax (expense) benefit

            1,755,258

                    -

          (6,394,033)

                     -

          (4,638,775)

Net earnings (losses)

 $         6,346,205

 $            218,646

 $       10,147,667

 $                         -

 $       16,712,518

Identifiable assets

 $     558,845,424

 $     116,368,747

 $       55,613,678

 $     (133,611,226)

 $     597,216,623

Goodwill

 $            391,848

 $            285,191

 $                        -

 $                         -

 $            677,039

Expenditures for long-lived assets

 $            400,605

 $            689,154

 $         2,131,861

 $                         -

 $         3,221,620

 

 

 

2011

Life

 

Cemetery/

 

 

Reconciling

 

 

Insurance

Mortuary

Mortgage

Items

Consolidated

Revenues:

From external sources:

Revenue from customers

 $       49,898,032

 $       10,761,469

 $     77,605,105

 $                         -

 $     138,264,606

Net investment income

          15,855,355

               159,186

          2,555,536

                     -

          18,570,077

Realized gains (losses) on

investments and other assets

            1,596,127

               868,226

                  -

                     -

            2,464,353

Other than temporary impairments

             (840,735)

                    -

                  -

                     -

             (840,735)

Other revenues

               712,400

               147,830

             248,739

                     -

            1,108,969

Intersegment revenues:

Net investment income

            5,832,691

            1,691,197

             258,062

            (7,781,950)

                           -

Total revenues

          73,053,870

          13,627,908

        80,667,442

            (7,781,950)

        159,567,270

Expenses:

Death and other policy benefits

          23,945,720

                    -

                  -

                     -

          23,945,720

Increase in future policy benefits

          22,258,241

                    -

                  -

                     -

          22,258,241

Amortization of deferred policy and preneed acquisition costs and

value of business acquired

            5,396,016

               373,332

                  -

                     -

            5,769,348

Depreciation

               479,634

               520,015

             499,389

                     -

            1,499,038

General, administrative and

other costs:

Intersegment

                 24,000

               103,494

             130,011

               (257,505)

                           -

Provision for loan losses

                    -

                    -

          2,070,399

                     -

            2,070,399

Costs related to funding mortgage

  loans

                    -

                    -

          4,240,377

                     -

            4,240,377

Other

          17,472,713

            9,827,197

        69,286,435

                     -

          96,586,345

Interest expense:

Intersegment

               668,047

            1,905,559

          4,950,839

            (7,524,445)

                           -

Other

               111,221

               437,736

          1,412,292

                     -

            1,961,249

Total benefits and expenses

          70,355,592

          13,167,333

        82,589,742

            (7,781,950)

        158,330,717

Earnings (losses) before income    taxes

 $         2,698,278

 $            460,575

 $     (1,922,300)

 $                         -

 $         1,236,553

Income tax (expense) benefit

             (734,626)

                    -

             796,831

                     -

                 62,205

Net earnings (losses)

 $         1,963,652

 $            460,575

 $     (1,125,469)

 $                         -

 $         1,298,758

Identifiable assets

 $     504,744,743

 $     116,453,434

 $     27,913,480

 $     (126,061,216)

 $     523,050,441

Goodwill

 $            391,848

 $            285,191

 $                     -

 $                         -

 $            677,039

Expenditures for long-lived assets

 $            136,742

 $            255,116

 $          373,775

 $                         -

 $            765,633