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Value of Business Acquired, Intangible Assets and Goodwill
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Value of Business Acquired, Intangible Assets and Goodwill

5) Value of Business Acquired, Intangible Assets and Goodwill

 

Information with regard to value of business acquired was as follows:

 

   2021   2020 
   December 31 
   2021   2020 
Balance at beginning of year  $8,955,249   $9,876,647 
Value of business acquired   586,840    - 
Imputed interest at 7% included in earnings   613,028    670,565 
Amortization included in earnings   (1,728,157)   (1,457,390)
Shadow amortization included in other comprehensive income   (5,528)   (134,573)
Net amortization   (1,120,657)   (921,398)
Balance at end of year  $8,421,432   $8,955,249 

 

Presuming no additional acquisitions, net amortization charged to income is expected to approximate $1,059,000, $972,000, $893,000, $810,000, and $753,000 for the years 2022 through 2027 . Actual amortization may vary based on changes in assumptions or experience. As of December 31, 2021, value of business acquired is being amortized over a weighted average life of 5.9 years.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2021 and 2020

 

5) Value of Business Acquired, Intangible Assets and Goodwill (Continued)

 

The carrying value of the Company’s intangible assets were as follows which is included in other assets:

 

      December 31 
   Useful Life  2021   2020 
Intangible asset - trade name (1)  15 years  $2,100,000   $- 
Intangible asset - customer lists  15 years   890,000    890,000 
Intangible asset - trade name (2)  15 years   610,000    610,000 
Intangible assets - other (1)  15 years   210,000    - 
Less accumulated amortization      (297,333)   (197,334)
Balance at end of year     $3,512,667   $1,302,666 

 

 
(1) See Note 20 regarding the acquisition of Rivera Funerals, Cremations and Memorial Gardens
(2) Kilpatrick Life

 

Information regarding goodwill by segment was as follows:

 

   Life Insurance   Cemetery/
Mortuary		   Total 
Balance at January 1, 2020:               
Goodwill  $2,765,570   $754,018   $3,519,588 
Accumulated impairment   -    -    - 
Total goodwill, net   2,765,570    754,018    3,519,588 
                
Acquisition   -    -    - 
                
Balance at December 31, 2020:               
Goodwill   2,765,570    754,018    3,519,588 
Accumulated impairment   -    -    - 
Total goodwill, net   2,765,570    754,018    3,519,588 
                
Acquisition   -    1,734,195(1)   1,734,195 
                
Balance at December 31, 2021:               
Goodwill   2,765,570    2,488,213    5,253,783 
Accumulated impairment   -    -    - 
Total goodwill, net  $2,765,570   $2,488,213   $5,253,783 

 

 

(1) See Note 20 regarding the acquisition of Rivera Funerals, Cremations and Memorial Gardens and Holbrook Mortuary

 

Goodwill is not amortized but is tested annually for impairment. The annual impairment tests resulted in no impairment of goodwill for the years ended December 31, 2021 and 2020.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2021 and 2020