Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Grant Contract Periods and Vesting Periods

Options generally vest in accordance with the following schedule:

	Contract period	Vesting period
Grants vest in the following periods under the Torchmark Corporation 2011 Incentive Plan:
Directors	7 years	6 months
Employees:	7 years	1/2 in 2 years	1/2 in 3 years
	10 years	1/4 in 2 years	1/4 in each of the next 3 years
	Contract period	Vesting period
Grants vest in the following periods under previous compensation plans:
Directors	7 years	6 months
Employees	7 years	1/2 in 2 years	1/2 in 3 years

Analysis of Shares Available for Grant

An analysis of shares available for grant is as follows:

	Available for Grant
	2015		2014		2013
Balance at January 1	8,458,593		4,368,753		6,804,452
2011 Plan amendment	—		6,300,000		—
Options expired and forfeited during year(1)	90,371		3,488		128,109
Restricted stock expired and forfeited during year(2)	89,745		31,620		9,625
Options granted during year(1)	(1,334,514	)	(1,523,982	)	(1,626,863	)
Restricted stock, restricted stock units, and performance shares granted under the Torchmark Corporation 2011 Incentive Plan(2)	(431,913	)	(721,286	)	(946,570	)
Balance at December 31	6,872,282		8,458,593		4,368,753

(1) Plan allows for grant of options such that each grant reduces shares available for grant in a range from 0.85 share to 1 share.

(2) Plan allows for grant of restricted stock such that each stock grant reduces shares available for grant in a range from 3.1 shares to 3.88 shares.

Summary of Stock Compensation Activity

A summary of stock compensation activity for each of the three years ended December 31, 2015 is presented below:

	2015		2014		2013
Stock-based compensation expense recognized(1)	$	28,664	$	32,203	$	25,642
Tax benefit recognized	10,033		11,271		8,975

(1) No stock-based compensation expense was capitalized in any period.

Selected stock option activity for the three years ended December 31, 2015 is presented below:

	2015		2014		2013
Weighted-average grant-date fair value of options granted (per share)	$	11.97	$	14.77	$	12.37
Intrinsic value of options exercised	54,854		61,229		72,793
Cash received from options exercised	35,958		56,294		97,815
Actual tax benefit received	24,470		23,232		27,972

Schedule of Additional Information of Stock-Based Compensation

Additional stock compensation information is as follows at December 31:

	2015		2014
Unrecognized compensation(1)	$	33,977	$	38,809
Weighted average period of expected recognition (in years)(1)	0.85		0.91

(1) Includes restricted stock and performance shares.

Additional information about Torchmark’s stock option activity as of December 31, 2015 and 2014 is as follows:

	2015		2014
Outstanding options:
Weighted-average remaining contractual term (in years)	4.32		4.34
Aggregate intrinsic value	$	141,728	$	167,713
Exercisable options:
Weighted-average remaining contractual term (in years)	2.74		2.72
Aggregate intrinsic value	$	104,885	$	112,724

Summary of Options Outstanding

The following table summarizes information about stock options outstanding at December 31, 2015.

	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number Outstanding	Weighted- Average Remaining Contractual Life (Years)	Weighted- Average Exercise Price		Number Exercisable	Weighted- Average Exercise Price
$10.44 - $29.59	2,197,238	2.07	$	26.05	2,130,205	$	25.94
30.32 - 32.48	1,145,648	3.66	30.58		986,823	30.62
37.40 - 43.06	1,438,565	4.48	37.61		624,655	37.88
50.69 - 51.62	1,481,681	5.64	50.70		14,044	51.04
53.61 - 54.16	1,471,709	6.68	53.62		18,334	54.16
$10.44 - $54.16	7,734,841	4.32	$	38.84	3,774,061	$	29.37

Analysis of Option Activity

An analysis of option activity for each of the three years ended December 31, 2015 is as follows:

	2015				2014				2013
	Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price
Outstanding-beginning of year	7,889,321		$	32.91	8,579,202		$	27.84	10,998,206		$	25.43
Granted:
7-year term	1,220,751		53.62		1,226,270		50.70		1,361,700		37.62
10-year term	296,875		53.61		297,712		50.69		265,162		37.40
Exercised	(1,576,485	)	22.81		(2,210,348	)	25.47		(3,917,757	)	24.97
Expired and forfeited	(95,621	)	48.85		(3,488	)	40.05		(128,109	)	32.33
Adjustment due to 7/1/14 stock split	—		—		(27	)	—		—		—
Outstanding-end of year	7,734,841		$	38.84	7,889,321		$	32.91	8,579,202		$	27.84
Exercisable at end of year	3,774,061		$	29.37	3,809,415		$	24.58	4,395,552		$	22.95

Schedule of Additional Information on Unvested Options

Additional information concerning Torchmark’s unvested options is as follows at December 31:

	2015		2014
Number of shares outstanding	3,960,780		4,079,906
Weighted-average exercise price (per share)	$	47.86	$	40.69
Weighted-average remaining contractual term (in years)	5.82		5.85
Aggregate intrinsic value	$	36,843	$	54,989

Summary of Restricted Stock and Restricted Stock Units Granted

A summary of restricted stock grants for each of the years in the three-year period ended December 31, 2015 is presented in the table below.

	2015			2014			2013
Executives restricted stock:
Shares	—			12,000			58,695
Price per share	$	—		$	50.69		$	40.09
Aggregate value	$	—		$	608		$	2,353
Percent vested as of 12/31/15	—		%	—		%	—		%
Directors restricted stock:
Shares	6,648			7,041			15,045
Price per share	$	54.16		$	51.62		$	35.45
Aggregate value	$	360		$	363		$	533
Percent vested as of 12/31/15	100		%	100		%	100		%
Directors restricted stock units (including dividend equivalents):
Shares	7,640			12,322			16,998
Price per share	$	54.44		$	51.69		$	35.99
Aggregate value	$	416		$	637		$	612
Percent vested as of 12/31/15	100		%	100		%	100		%
Performance shares:
Target shares	179,500			179,250			147,750
Target price per share	$	53.61		$	51.41		$	37.40
Assumed adjustment for performance objectives	(58,056		)	22,060			94,800
Aggregate value	$	9,623		$	9,215		$	5,526
Percent vested as of 12/31/15	—		%	—		%	—		%

Analysis of Unvested Restricted Stock

An analysis of unvested restricted stock is as follows:

	Executive Restricted Stock		Executive Performance Shares		Directors Restricted Stock		Directors Restricted Stock Units		Total
2013:
Balance at January 1, 2013	467,550		120,000						587,550
Grants	58,695		147,750		15,045		16,998		238,488
Additional performance shares(1)			94,800						94,800
Restriction lapses	(150,750	)			(15,045	)	(16,998	)	(182,793	)
Forfeitures	(31,050	)							(31,050	)
Balance at December 31, 2013	344,445		362,550		—		—		706,995
2014:
Grants	12,000		179,250		7,041		12,322		210,613
Additional performance shares(1)			22,060						22,060
Restriction lapses	(90,315	)			(7,041	)	(12,322	)	(109,678	)
Forfeitures	(2,700	)	(7,500	)					(10,200	)
Balance at December 31, 2014	263,430		556,360		—		—		819,790
2015:
Grants	—		179,500		6,648		7,640		193,788
Additional performance shares(1)			(58,056	)					(58,056	)
Restriction lapses	(61,815	)	(211,287	)	(6,648	)	(7,640	)	(287,390	)
Forfeitures	(13,950	)	(7,500	)					(21,450	)
Balance at December 31, 2015	187,665		459,017		—		—		646,682

(1) Estimated additional share grants expected due to achievement of performance criteria.

Schedule of Weighted-Average Grant-Date Fair Values of Unvested Restricted Stock

An analysis of the weighted-average grant-date fair values of unvested restricted stock is as follows for the year 2015:

	Executive Restricted Stock			Executive Performance Shares			Directors Restricted Stock			Directors Restricted Stock Units
Grant-date fair value per share at January 1, 2015	$	31.85		$	40.07
Grants	—			53.61			$	54.16		$	54.16
Estimated additional performance shares				55.49
Restriction lapses	(29.26		)	(32.63		)	(54.16		)	(54.16		)
Forfeitures	28.97			44.66
Grant-date fair value per share at December 31, 2015	32.92			46.77