Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2015

Total Cost of Retirement Plans Charged to Operations

The total cost of these retirement plans charged to operations was as follows:

Year Ended December 31,	Defined  Contribution Plans		Defined  Benefit Pension Plans
2015	$	3,429	$	29,230
2014	3,078		23,463
2013	3,373		33,122

Pension Assets by Component at Fair Value

The following table presents the assets of Torchmark’s defined benefit pension plans for the years ended December 31, 2015 and 2014.

Pension Assets by Component at December 31, 2015

	Fair Value Determined by:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Amount		% to Total
Equity securities:
Financial	$	49,391	$		$		$	49,391	16
Consumer, Cyclical	24,264						24,264		8
Technology	19,871						19,871		6
Industrial	15,176						15,176		5
Consumer, Non-Cyclical	12,216						12,216		4
Other	2,502		8				2,510		1
Total equity securities	123,420		8		—		123,428		40
Corporate bonds
Financial			36,266				36,266		12
Utilities			43,229				43,229		14
Energy			25,890				25,890		8
Other corporates			40,996				40,996		13
Total corporate bonds	—		146,381		—		146,381		47
Other bonds			270				270		—
Guaranteed annuity contract(1)			17,082				17,082		6
Short-term investments	15,593						15,593		5
Other	4,842						4,842		2
Grand Total	$	143,855	$	163,741	$	—	$	307,596	100

(1) This amount represents a guaranteed annuity contract issued by Torchmark's subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Pension Plan.

Pension Assets by Component at December 31, 2014

	Fair Value Determined by:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Amount		% to Total
Equity securities:
Financial	$	45,790	$		$		$	45,790	14
Consumer, Cyclical	26,542						26,542		8
Technology	16,965						16,965		5
Consumer, Non-Cyclical	11,665						11,665		4
Energy	10,192						10,192		3
Communications	9,322						9,322		3
Industrial	6,377						6,377		2
Other	715						715		—
Total equity securities	127,568		—		—		127,568		39
Corporate bonds
Financial			40,889				40,889		13
Utilities			48,510				48,510		15
Energy			30,936				30,936		10
Other corporates			46,490				46,490		14
Total corporate bonds	—		166,825		—		166,825		52
Other bonds			284				284		—
Guaranteed annuity contract(1)			15,027				15,027		5
Short-term investments	9,038						9,038		3
Other	4,156						4,156		1
Grand Total	$	140,762	$	182,136	$	—	$	322,898	100

(1) This amount represents a guaranteed annuity contract issued by Torchmark's subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Pension Plan.

Analysis of Impact on Other Comprehensive Income (Loss)

An analysis of the impact on other comprehensive income (loss) concerning pensions and other postretirement benefits is as follows:

	Year Ended December 31,
	2015			2014			2013
Balance at January 1	$	(152,999	)	$	(97,467	)	$	(168,129	)
Amortization of:
Prior service cost	377			2,113			2,276
Net actuarial (gain) loss(1)	14,209			8,172			16,090
Total amortization	14,586			10,285			18,366
Plan amendments	(2,104		)	—			—
Experience gain(loss)	(11,632		)	(65,817		)	52,296
Balance at December 31	$	(152,149	)	$	(152,999	)	$	(97,467	)

(1) Includes amortization of postretirement benefits other than pensions of $120 thousand in 2015, $2 thousand in 2014, and $224 thousand in 2013.

Portion of Other Comprehensive Income Expected to Be Reflected in Pension Expense in Next Year

The portion of other comprehensive income that is expected to be reflected in pension expense in 2016 is as follows:

Amortization of prior service cost	$	477
Amortization of net actuarial loss	9,695
Total	$	10,172

Pension Benefits [Member]

Weighted Average Assumptions

Weighted Average Pension Plan Assumptions

For Benefit Obligations at December 31:
	2015		2014
Discount Rate	4.64	%	4.23	%
Rate of Compensation Increase	4.33		4.35

For Periodic Benefit Cost for the Year:
	2015		2014		2013
Discount Rate	4.23	%	5.12	%	4.18	%
Expected Long-Term Returns	6.96		6.97		6.96
Rate of Compensation Increase	4.35		4.35		4.40

Components of Net Periodic Pension Costs and Post-Retirement Benefit Costs

Net periodic pension cost for the defined benefit plans by expense component was as follows:

	Year Ended December 31,
	2015			2014			2013
Service cost—benefits earned during the period	$	15,902		$	12,925		$	14,984
Interest cost on projected benefit obligation	19,887			19,270			17,043
Expected return on assets	(21,204		)	(19,031		)	(17,429		)
Net amortization	14,465			10,283			18,143
Recognition of actuarial loss	180			16			381
Net periodic pension cost	$	29,230		$	23,463		$	33,122

Reconciliation of Benefit Obligation and Plan Assets

The following table presents a reconciliation from the beginning to the end of the year of the projected benefit obligation and plan assets for pensions. This table also presents the amounts previously recognized as a component of accumulated other comprehensive income.

Pension Benefits

	Year Ended December 31,
	2015			2014
Changes in benefit obligation:
Obligation at beginning of year	$	477,426		$	383,859
Service cost	15,902			12,925
Interest cost	19,887			19,270
Plan amendments	2,104			—
Actuarial loss (gain)	(19,226		)	78,487
Benefits paid	(19,512		)	(17,115		)
Obligation at end of year	476,581			477,426
Changes in plan assets:
Fair value at beginning of year	322,898			291,753
Return on assets	(11,333		)	33,641
Contributions	15,543			14,619
Benefits paid	(19,512		)	(17,115		)
Fair value at end of year	307,596			322,898
Funded status at year end	$	(168,985	)	$	(154,528	)

Schedule of Amounts Recognized as Components Accumulated Other Comprehensive Income

Amounts recognized in accumulated other comprehensive income consist of:
Net loss (gain)	$	145,623	$	146,571
Prior service cost	5,088		3,362
Net amounts recognized at year end	$	150,711	$	149,933

Estimated Future Payments for Post-Retirement Benefit Plans

Torchmark has estimated its expected pension benefits to be paid over the next ten years as of December 31, 2015. These estimates use the same assumptions that measure the benefit obligation at December 31, 2014, taking estimated future employee service into account. Those estimated benefits are as follows:

For the year(s)
2016	$	18,352
2017	19,832
2018	21,077
2019	21,660
2020	24,048
2021-2025	143,489

Other Benefits [Member]

Weighted Average Assumptions

The table below presents the assumptions used to determine the liabilities and costs of Torchmark’s postretirement benefit plans other than pensions.

Weighted Average Assumptions for Postretirement

Benefit Plans Other Than Pensions

For Benefit Obligations at December 31:
	2015		2014
Discount Rate	4.66	%	4.23	%

For Periodic Benefit Cost for the Year:
	2015		2014		2013
Discount Rate	4.23	%	5.12	%	4.18	%

Components of Net Periodic Pension Costs and Post-Retirement Benefit Costs

The components of net periodic postretirement benefit cost for plans other than pensions are as follows:

	Year Ended December 31,
	2015		2014			2013
Service cost	$	—	$	—		$	354
Interest cost on benefit obligation	1,075		646			1,030
Expected return on plan assets	—		—			—
Net amortization	120		2			224
Recognition of net actuarial (gain) loss	367		(256		)	—
Net periodic postretirement benefit cost	$	1,562	$	392		$	1,608

Reconciliation of Benefit Obligation and Plan Assets

The following table presents a reconciliation of the benefit obligation and plan assets from the beginning to the end of the year. As these plans are unfunded, funded status is equivalent to the accrued benefit liability.

Benefits Other Than Pensions

	Year Ended December 31,
	2015			2014
Changes in benefit obligation:
Obligation at beginning of year	$	22,895		$	20,860
Service cost	—			—
Interest cost	1,075			646
Actuarial loss (gain)	(1,133		)	1,700
Benefits paid	(358		)	(311		)
Obligation at end of year	22,479			22,895
Changes in plan assets:
Fair value at beginning of year	—			—
Return on assets	—			—
Contributions	358			311
Benefits paid	(358		)	(311		)
Fair value at end of year	—			—
Funded status at year end	$	(22,479	)	$	(22,895	)

Schedule of Amounts Recognized as Components Accumulated Other Comprehensive Income

Amounts recognized in accumulated other comprehensive income:
Net loss(1)	$	1,447	$	3,066
Net amounts recognized at year end	$	1,447	$	3,066

(1) The net loss for benefit plans other than pensions reduces other comprehensive income.

Estimated Future Payments for Post-Retirement Benefit Plans

Estimated Future Payments for Post-Retirement Benefit Plans Other Than Pensions

For the year(s)
2016	$	921
2017	1,018
2018	1,137
2019	1,252
2020	1,356
2021-2025	8,921