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7) Business Segment Information
 9 Months Ended
Sep. 30, 2020
Disclosure Text Block [Abstract]  
7) Business Segment Information

7)       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 loans held for sale.

 

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, 2019. 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   IntercompanyEliminations   Consolidated
For the Three Months Ended                    
September 30, 2020                    
Revenues from external customers    $   39,261,044    $   5,495,990    $ 101,447,531    $                -    $   146,204,565
Intersegment revenues           2,952,836             79,096             168,890        (3,200,822)                         -
Segment profit before income taxes           4,807,280        1,322,303        32,454,348                      -          38,583,931
                          -            
For the Three Months Ended                    
                     
September 30, 2019                    
Revenues from external customers    $   29,824,686    $   3,570,419    $   41,984,554    $                -    $     75,379,659
Intersegment revenues           1,465,778           106,638             120,891        (1,693,307)                         -
Segment profit before income taxes           1,263,836           213,198          3,282,788                      -            4,759,822
                     
For the Nine Months Ended                    
September 30, 2020                    
Revenues from external customers    $  110,255,399    $ 14,815,991    $ 219,403,866    $                -    $   344,475,256
Intersegment revenues           5,677,189           272,409             559,923        (6,509,521)                         -
Segment profit before income taxes           5,408,482        2,975,556        58,867,883                      -          67,251,921
                     
Identifiable Assets     1,232,786,760       55,339,760       443,756,079      (88,204,200)      1,643,678,399
Goodwill           2,765,570           754,018                       -                      -            3,519,588
Total Assets     1,235,552,330       56,093,778       443,756,079      (88,204,200)      1,647,197,987
                     
For the Nine Months Ended                    
September 30, 2019                    
Revenues from external customers    $   88,937,110    $ 12,472,711    $ 103,908,855    $                -    $   205,318,676
Intersegment revenues           3,441,497           336,911             372,170        (4,150,578)                         -
Segment profit before income taxes           4,568,178        2,421,845          4,825,801                      -          11,815,824
                     
Identifiable Assets       941,739,161       84,250,592       243,272,631     (110,132,588)      1,159,129,796
Goodwill           2,765,570           754,018                       -                      -            3,519,588
Total Assets       944,504,731       85,004,610       243,272,631     (110,132,588)      1,162,649,384