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6) Business Segments
 3 Months Ended
Mar. 31, 2016
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 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 of the Form 10-K for the year ended December 31, 2015. 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

Eliminations

Consolidated

For the Three Months Ended

March 31, 2016

Revenues from external customers

 $  22,075,134

 $   3,330,766

 $   40,608,415

 $                -

 $   66,014,315

Intersegment revenues

       3,103,446

        286,925

           79,479

     (3,469,850)

                    -

Segment profit before income taxes

       1,065,168

        469,055

       1,316,542

                   -

       2,850,765

Identifiable Assets

   724,858,698

    96,827,903

     69,077,738

  (133,414,858)

    757,349,481

Goodwill

       2,765,570

                  -

                    -

                   -

       2,765,570

For the Three Months Ended

March 31, 2015

Revenues from external customers

 $  20,985,500

 $   3,098,238

 $   39,965,894

 $                -

 $   64,049,632

Intersegment revenues

       2,818,867

        311,998

           88,487

     (3,219,352)

                    -

Segment profit before income taxes

       1,403,851

        409,175

       1,185,358

                   -

       2,998,384

Identifiable Assets

   677,059,957

  104,778,721

     62,765,551

  (142,826,038)

    701,778,191

Goodwill

       2,765,570

                  -

                    -

                   -

       2,765,570