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6) Business Segments
 9 Months Ended
Sep. 30, 2015
Notes  
6) Business Segments

6)      Business Segments

 

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 loan fee income and expenses from the originations of residential and commercial 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 of the form 10K for the year ended December 31, 2014. 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.

 

Life Insurance

Cemetery/ Mortuary

Mortgage

Eliminations

Consolidated

For the Three Months Ended

September 30, 2015

Revenues from external customers

 $  23,148,090

 $   3,123,168

 $   49,223,428

 $                -

 $   75,494,686

Intersegment revenues

       3,206,703

        292,445

           76,159

     (3,575,307)

                    -

Segment profit before income taxes

       3,655,998

        250,111

       3,888,291

                   -

       7,794,400

For the Three Months Ended

September 30, 2014

Revenues from external customers

 $  21,552,754

 $   2,707,908

 $   37,465,130

 $                -

 $   61,725,792

Intersegment revenues

       2,407,685

        331,415

          166,043

     (2,905,143)

                    -

Segment profit before income taxes

       1,986,732

      (119,548)

       1,509,956

                   -

       3,377,140

For the Nine Months Ended

September 30, 2015

Revenues from external customers

 $  65,610,558

 $   9,436,496

 $ 140,537,879

 $                -

 $ 215,584,933

Intersegment revenues

       8,884,390

        910,016

          256,950

   (10,051,356)

                    -

Segment profit before income taxes

       7,175,036

        811,261

       9,038,439

                   -

     17,024,736

Identifiable Assets

   709,683,255

  100,760,704

     71,954,237

  (133,002,358)

    749,395,838

Goodwill

       2,765,570

                  -

                    -

                   -

       2,765,570

For the Nine Months Ended

September 30, 2014

Revenues from external customers

 $  59,836,068

 $   9,283,357

 $   97,071,373

 $                -

 $ 166,190,798

Intersegment revenues

       6,825,600

     1,002,027

          561,438

     (8,389,065)

                    -

Segment profit before income taxes

       4,833,627

        232,141

       2,664,456

                   -

       7,730,224

Identifiable Assets

   646,540,190

  106,836,565

     56,961,903

  (149,825,928)

    660,512,730

Goodwill

       2,765,570

        285,191

                    -

                   -

       3,050,761