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15) Business Segment Information | 12 Months Ended
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Dec. 31, 2018
Notes |
15) Business Segment Information | 15) 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. 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.
| 2018
| Life |  | Cemetery/ |  |  | Intercompany |
| Insurance |  | Mortuary |  | Mortgage |  | Eliminations |  | Consolidated
Revenues: |  |  |  |  |  |  |  |  |
From external sources: |  |  |  |  |  |  |  |  |
Revenue from customers | $ 75,928,910 |  | $ 13,726,518 |  | $ 116,185,853 |  | $ - |  | $ 205,841,281
Net investment income | 38,720,365 |  | 283,343 |  | 909,559 |  | - |  | 39,913,267
Gains on investments and other assets | 21,396,282 |  | 2,301,342 |  | 243,555 |  | - |  | 23,941,179
Other revenues | 1,636,901 |  | 128,797 |  | 8,157,302 |  | - |  | 9,923,000
Intersegment revenues: |  |  |  |  |  |  |  |  |
Net investment income | 3,972,532 |  | 429,312 |  | 503,794 |  | (4,905,638) |  | -
Total revenues | 141,654,990 |  | 16,869,312 |  | 126,000,063 |  | (4,905,638) |  | 279,618,727
Expenses: |  |  |  |  |  |  |  |  |
Death, surrenders and other policy benefits | 39,185,087 |  | - |  | - |  | - |  | 39,185,087
Increase in future policy benefits | 24,332,088 |  | - |  | - |  | - |  | 24,332,088
Amortization of deferred policy and pre-need acquisition costs and value of business acquired | 11,270,579 |  | 360,767 |  | - |  | - |  | 11,631,346
Selling, general and administrative expenses: |  |  |  |  |  |  |  |  |
Commissions | 3,242,745 |  | 1,222,642 |  | 45,825,965 |  | - |  | 50,291,352
Personnel | 18,489,063 |  | 4,773,866 |  | 44,106,023 |  | - |  | 67,368,952
Advertising | 566,154 |  | 333,852 |  | 3,702,585 |  | - |  | 4,602,591
Rent and rent related | 321,701 |  | 33,138 |  | 7,250,536 |  | - |  | 7,605,375
Depreciation on property and equipment | 400,686 |  | 372,469 |  | 1,093,846 |  | - |  | 1,867,001
Cost related to funding mortgage loans | - |  | - |  | 6,423,944 |  | - |  | 6,423,944
Intersegment | 402,213 |  | 182,009 |  | 531,370 |  | (1,115,592) |  | -
Other | 10,094,626 |  | 3,046,902 |  | 17,873,471 |  | - |  | 31,014,999
Interest expense: |  |  |  |  |  |  |  |  |
Intersegment | 481,587 |  | 173,807 |  | 3,134,652 |  | (3,790,046) |  | -
Other | 2,744,841 |  | 294,535 |  | 3,917,331 |  | - |  | 6,956,707
Cost of goods and services sold - mortuaries and cemeteries | - |  | 2,158,895 |  | - |  | - |  | 2,158,895
Total benefits and expenses | 111,531,370 |  | 12,952,882 |  | 133,859,723 |  | (4,905,638) |  | 253,438,337
Earnings before income taxes | $ 30,123,620 |  | $ 3,916,430 |  | $ (7,859,660) |  | $ - |  | $ 26,180,390
Income tax benefit (expense) | (5,275,662) |  | (946,820) |  | 1,728,171 |  | - |  | (4,494,311)
Net earnings | $ 24,847,958 |  | $ 3,916,430 |  | $ (6,131,489) |  | $ - |  | $ 21,686,079
Identifiable assets | $ 928,251,387 |  | $ 90,639,130 |  | $ 159,680,649 |  | $ (130,525,613) |  | $ 1,048,045,553
Goodwill | $ 2,765,570 |  | $ - |  | $ - |  | $ - |  | $ 2,765,570
| 2017
| Life |  | Cemetery/ |  |  | Intercompany |
| Insurance |  | Mortuary |  | Mortgage |  | Eliminations |  | Consolidated
Revenues: |  |  |  |  |  |  |  |  |
From external sources: |  |  |  |  |  |  |  |  |
Revenue from customers | $ 70,412,476 |  | $ 12,657,117 |  | $ 153,797,171 |  | $ - |  | $ 236,866,764
Net investment income | 34,089,912 |  | 424,316 |  | 548,740 |  | - |  | 35,062,968
Gains (losses) on investments and other assets | (3,871,309) |  | 186,335 |  | 736,492 |  | - |  | (2,948,482)
Other than temporary impairments | (774,339) |  | - |  | - |  | - |  | (774,339)
Other revenues | 856,094 |  | 97,602 |  | 7,765,483 |  | - |  | 8,719,179
Intersegment revenues: |  |  |  |  |  |  |  |  |
Net investment income | 5,987,731 |  | 422,623 |  | 401,283 |  | (6,811,637) |  | -
Total revenues | 106,700,565 |  | 13,787,993 |  | 163,249,169 |  | (6,811,637) |  | 276,926,090
Expenses: |  |  |  |  |  |  |  |  |
Death, surrenders and other policy benefits | 36,095,018 |  | - |  | - |  | - |  | 36,095,018
Increase in future policy benefits | 23,622,750 |  | - |  | - |  | - |  | 23,622,750
Amortization of deferred policy and pre-need acquisition costs and value of business acquired | 8,157,456 |  | 322,794 |  | - |  | - |  | 8,480,250
Selling, general and administrative expenses: |  |  |  |  |  |  |  |  |
Commissions | 3,095,319 |  | 1,053,449 |  | 63,954,249 |  | - |  | 68,103,017
Personnel | 17,031,563 |  | 4,519,573 |  | 48,777,694 |  | - |  | 70,328,830
Advertising | 518,117 |  | 293,009 |  | 4,943,614 |  | - |  | 5,754,740
Rent and rent related | 446,701 |  | 51,742 |  | 8,212,251 |  | - |  | 8,710,694
Depreciation on property and equipment | 484,349 |  | 401,564 |  | 1,334,780 |  | - |  | 2,220,693
Costs related to funding mortgage loans | - |  | - |  | 8,663,223 |  | - |  | 8,663,223
Intersegment | 315,588 |  | 184,853 |  | 499,707 |  | (1,000,148) |  | -
Other | 9,540,607 |  | 2,826,208 |  | 17,064,784 |  | - |  | 29,431,599
Interest expense: |  |  |  |  |  |  |  |  |
Intersegment | 445,520 |  | 181,793 |  | 5,184,176 |  | (5,811,489) |  | -
Other | 2,218,956 |  | 330,211 |  | 3,488,165 |  | - |  | 6,037,332
Cost of goods and services sold - mortuaries and cemeteries | - |  | 1,945,832 |  | - |  | - |  | 1,945,832
Total benefits and expenses | 101,971,944 |  | 12,111,028 |  | 162,122,643 |  | (6,811,637) |  | 269,393,978
Earnings before income taxes | $ 4,728,621 |  | $ 1,676,965 |  | $ 1,126,526 |  | $ - |  | $ 7,532,112
Income tax benefit (expense) | 6,301,872 |  | (606,293) |  | 885,243 |  | - |  | 6,580,822
Net earnings | $ 11,030,493 |  | $ 1,676,965 |  | $ 2,011,769 |  | $ - |  | $ 14,112,934
Identifiable assets | $ 858,068,899 |  | $ 95,097,729 |  | $ 161,051,531 |  | $ (134,810,675) |  | $ 979,407,484
Goodwill | $ 2,765,570 |  | $ - |  | $ - |  | $ - |  | $ 2,765,570

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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