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Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Grant Contract Periods and Vesting Periods
 

 
Shares vested by period
 
Contract Period
 
6 Months
 
Year 1
 
Year 2
 
Year 3
 
Year 4
 
Year 5
Directors
7 years
 
100%
 
 
 
 
 
 
 
 
 
 
Employees
7 years
 
—%
 
—%
 
50%
 
50%
 
 
 
 
Employees(1)
10 years
 
—%
 
—%
 
25%
 
25%
 
25%
 
25%

(1)
Grant offered through the Torchmark Corporation 2011 Incentive Plan only.
Analysis of Shares Available for Grant
An analysis of shares available for grant is as follows:
 
Available for Grant
 
2016
 
2015
 
2014
Balance at January 1,
6,872,282

 
8,458,593

 
4,368,753

2011 Plan amendment
—

 
—

 
6,300,000

Options expired and forfeited during year(1)
8,518

 
90,371

 
3,488

Restricted stock expired and forfeited during year(2)
—

 
89,745

 
31,620

Options granted during year(1)
(1,306,306
)
 
(1,334,514
)
 
(1,523,982
)
Restricted stock, restricted stock units, and performance shares granted under the Torchmark Corporation 2011 Incentive Plan(2)
(486,033
)
 
(431,913
)
 
(721,286
)
Balance at December 31,
5,088,461

 
6,872,282

 
8,458,593


(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
Selected stock option activity for the three years ended December 31, 2016 is presented below:
 
2016
 
2015
 
2014
Weighted-average grant-date fair value of options granted
(per share)
$
9.04

 
$
11.97

 
$
14.77

Intrinsic value of options exercised
73,995

 
54,854

 
61,229

Cash received from options exercised
61,329

 
35,958

 
56,294

Actual tax benefit received
25,898

 
24,470

 
23,232

A summary of stock compensation activity for each of the three years ended December 31, 2016 is presented below:
 
2016
 
2015
 
2014
Stock-based compensation expense recognized(1)
$
26,326

 
$
28,664

 
$
32,203

Tax benefit recognized(2)
27,867

 
10,033

 
11,271


(1)
No stock-based compensation expense was capitalized in any period.
(2)
Due to the adoption of ASU 2016-09 as described in Note 1—Significant Accounting Policies under "Accounting Pronouncements Adopted in the Current Year", certain current year balances related to excess tax benefits from stock compensation were adjusted prospectively.
Schedule of Additional Information of Stock-Based Compensation
Additional information about Torchmark’s stock option activity as of December 31, 2016 and 2015 is as follows:
 
2016
 
2015
Outstanding options:
 
 
 
Weighted-average remaining contractual term (in years)
4.70


4.32

Aggregate intrinsic value
$
87,286


$
141,728

Exercisable options:



Weighted-average remaining contractual term (in years)
2.96


2.74

Aggregate intrinsic value
$
63,395


$
104,885

Additional stock compensation information is as follows at December 31:
 
2016
 
2015
Unrecognized compensation(1)
$
27,334

 
$
33,977

Weighted average period of expected recognition (in years)(1)
0.89

 
0.85

(1)
Includes restricted stock and performance shares.
Summary of Options Outstanding
The following table summarizes information about stock options outstanding at December 31, 2016.

 
 
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
$20.58 - $32.48
 
1,549,010

 
2.23
 
$
30.01

 
1,470,267

 
$
29.99

37.40 - 43.06
 
1,111,634

 
3.53
 
37.67

 
998,713

 
37.70

50.64
 
1,412,225

 
7.41
 
50.64

 
—

 
—

50.69
 
1,406,282

 
4.63
 
50.69

 
604,802

 
50.69

51.62 - 56.32
 
1,494,440

 
5.65
 
53.64

 
42,065

 
54.79

$20.58 - $56.32
 
6,973,591

 
4.70
 
$
44.64

 
3,115,847

 
$
36.81
Analysis of Option Activity
An analysis of option activity for each of the three years ended December 31, 2016 is as follows:
 
2016
 
2015
 
2014
 
Options
 
Weighted Average
Exercise Price
 
Options
 
Weighted Average
Exercise Price
 
Options
 
Weighted Average
Exercise Price
Outstanding-beginning of year
7,734,841

 
$
38.84

 
7,889,321

 
$
32.91

 
8,579,202

 
$
27.84

Granted:
 
 
 
 
 
 
 
 
 
 
 
7-year term
834,212

 
50.78

 
1,220,751

 
53.62

 
1,226,270

 
50.70

10-year term
597,225

 
50.64

 
296,875

 
53.61

 
297,712

 
50.69

Exercised
(2,184,169
)
 
28.08

 
(1,576,485
)
 
22.81

 
(2,210,348
)
 
25.47

Expired and forfeited
(8,518
)
 
39.35

 
(95,621
)
 
48.85

 
(3,488
)
 
40.05

Adjustment due to 7/1/14 stock split
—

 
—

 
—

 
—

 
(27
)
 
—

Outstanding-end of year
6,973,591

 
$
44.64

 
7,734,841

 
$
38.84

 
7,889,321

 
$
32.91

 
 
 
 
 
 
 
 
 
 
 
 
Exercisable at end of year
3,115,847

 
$
36.81

 
3,774,061

 
$
29.37

 
3,809,415

 
$
24.58
Schedule of Additional Information on Unvested Options
Additional information concerning Torchmark’s unvested options is as follows at December 31:
 
2016
 
2015
 
 
Number of shares outstanding
3,857,744

 
3,960,780

 
 
Weighted-average exercise price (per share)
$
50.97

 
$
47.86

 
 
Weighted-average remaining contractual term (in years)
6.11

 
5.82

 
 
Aggregate intrinsic value
$
23,891

 
$
36,843

 
 
Schedule of Performance Shares Settled
Below is the final determination of the performance share grants in 2012 to 2014:
Year of grants
 
Final settlement of shares
 
Final settlement date
2012
 
211,287

 
January 27, 2015
2013
 
159,020

 
February 24, 2016
2014
 
119,896

 
February 21, 2017
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, 2016 is presented in the table below.
 
2016
 
2015
 
2014
Executives restricted stock:
 
 
 
 
 
Shares
—

 
—

 
12,000

Price per share
$
—

 
$
—

 
$
50.69

Aggregate value
$
—

 
$
—

 
$
608

Percent vested as of 12/31/16
—
%
 
—
%
 
—
%
Directors restricted stock:
 
 
 
 
 
Shares
12,549

 
6,648

 
7,041

Price per share
$
57.39

 
$
54.16

 
$
51.62

Aggregate value
$
720

 
$
360

 
$
363

Percent vested as of 12/31/16
85
%
 
100
%
 
100
%
Directors restricted stock units (including dividend equivalents):
 
 
 
 
 
Shares
6,912

 
7,640

 
12,322

Price per share
$
56.74

 
$
54.44

 
$
51.69

Aggregate value
$
392

 
$
416

 
$
637

Percent vested as of 12/31/16
100
%
 
100
%
 
100
%
Performance shares:


 


 


Target shares
167,500

 
179,500

 
179,250

Target price per share
$
50.64

 
$
53.61

 
$
51.41

Assumed adjustment for performance objectives (in shares)
(35,073
)
 
(58,056
)
 
22,060

Aggregate value
$
8,482

 
$
9,623

 
$
9,215

Percent vested as of 12/31/16
—
%
 
—
%
 
—
%
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
2014:
 
 
 
 
 
 
 
 
 
Balance at January 1, 2014
344,445

 
362,550

 
—

 
—

 
706,995

Grants
12,000

 
179,250

 
7,041

 
12,322

 
210,613

Additional performance shares(1)


 
22,060

 


 


 
22,060

Restriction lapses and settlements
(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

2016:
 
 
 
 
 
 
 
 
 
Grants
—

 
167,500

 
12,549

 
6,912

 
186,961

Additional performance shares(1)


 
(35,073
)
 


 


 
(35,073
)
Restriction lapses
(130,215
)
 
(159,020
)
 
(10,655
)
 
(6,912
)
 
(306,802
)
Forfeitures
—

 
—

 


 


 
—

Balance at December 31, 2016
57,450

 
432,424

 
1,894

 
—

 
491,768


(1)
Estimated additional (reduced) 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 per share of unvested restricted stock is as follows for the year 2016:
 
Executive
Restricted Stock
 
Executive
Performance
Shares
 
Directors
Restricted
Stock
 
Directors
Restricted
Stock Units
Grant-date fair value per share at January 1, 2016
$
32.92

 
$
46.77

 
 
 
 
Grants
—

 
50.64

 
$
57.39

 
$
56.32

Estimated additional performance shares
 
 
(70.47
)
 
 
 
 
Restriction lapses
(30.47
)
 
(37.40
)
 
(56.32
)
 
(56.32
)
Forfeitures
—

 
—

 
 
 
 
Grant-date fair value per share at December 31, 2016
38.46

 
49.79

 
63.39