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6) Business Segments

6 Months Ended

Jun. 30, 2017

6) Business Segments

6) 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 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/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
June 30, 2017
Revenues from external customers		$ 25,723,657		$ 3,314,003		$ 44,133,898		$ -		$ 73,171,558
Intersegment revenues		2,977,427		113,104		86,414		(3,176,945)		-
Segment profit before income taxes		2,818,600		335,877		839,822		-		3,994,299

For the Three Months Ended
June 30, 2016
Revenues from external customers		$ 23,569,437		$ 3,813,701		$ 52,704,089		$ -		$ 80,087,227
Intersegment revenues		3,358,988		221,862		80,860		(3,661,710)		-
Segment profit before income taxes		2,542,035		759,607		4,684,244		-		7,985,886

For the Six Months Ended
June 30, 2017
Revenues from external customers		$ 51,882,358		$ 6,918,900		$ 85,199,597		$ -		$ 144,000,855
Intersegment revenues		5,966,078		222,455		182,184		(6,370,717)		-
Segment profit before income taxes		4,302,080		1,094,788		1,495,201		-		6,892,069

Identifiable Assets		839,619,710		95,058,739		170,463,229		(131,393,058)		973,748,620
Goodwill		2,765,570		-		-		-		2,765,570
Total Assets		842,385,280		95,058,739		170,463,229		(131,393,058)		976,514,190

For the Six Months Ended
June 30, 2016
Revenues from external customers		$ 45,644,571		$ 7,144,467		$ 96,754,537		$ -		$ 149,543,575
Intersegment revenues		6,462,434		508,787		160,339		(7,131,560)		-
Segment profit before income taxes		3,645,762		1,228,662		7,182,542		-		12,056,966

Identifiable Assets		727,655,688		95,831,664		194,523,880		(131,845,488)		886,165,744
Goodwill		2,765,570		-		-		-		2,765,570
Total Assets		730,421,258		95,831,664		194,523,880		(131,845,488)		888,931,314