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Debt (Tables)
 12 Months Ended
Dec. 31, 2017
Debt Disclosure [Abstract]  
Selected Information about Debt Issues
The following table presents information about the terms and outstanding balances of Torchmark’s debt.
 
Selected Information about Debt Issues
  
 
 
 
 
 
 
As of December 31,
  
 
 
 
 
 
 
2017
 
2016
 
Annual
Interest
Rate
 
Issue
Date
 
Periodic
Interest
Payments
Due
 
Outstanding
Principal
(Par Value)
 
Outstanding
Principal
(Book Value)
 
Outstanding
Principal
(Fair Value)
 
Outstanding
Principal
(Book Value)
Long-term debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes, due 5/15/23(3,5)
7.875
%
 
5/93
 
5/15 & 11/15
 
$
165,612

 
$
164,284

 
$
195,786

 
$
164,095

Senior Notes, due 6/15/19(3,7)
9.250
%
 
6/09
 
6/15 & 12/15
 
292,647

 
291,888

 
320,697

 
291,424

Senior Notes, due 9/15/22(3,7)
3.800
%
 
9/12
 
3/15 & 9/15
 
150,000

 
148,477

 
155,000

 
148,189

Junior Subordinated Debentures due 12/15/52(4,8,12)
5.875
%
 
9/12
 
quarterly
 
—

 
—

 
—

 
120,929

Junior Subordinated Debentures due 3/15/36(4,6,12)
4.888
%
(13) 
(11) 
 
quarterly
 
20,000

 
20,000

 
20,000

 
20,000

Junior Subordinated Debentures due 6/15/56(4,9)
6.125
%
 
4/16
 
quarterly
 
300,000

 
290,460

 
321,120

 
290,403

Junior Subordinated Debentures due 11/17/57(4,10)
5.275
%
 
11/17
 
6/15 & 12/15
 
125,000

 
123,342

 
122,039

 
—

Term loan due 5/17/21(1,6)
2.600
%
(14) 
6/16
 
monthly
 
98,125

 
98,125

 
98,125

 
100,000

 
 
 
 
 
 
 
1,151,384

 
1,136,576

 
1,232,767

 
1,135,040

Less current maturity of term loan
 
4,375

 
4,375

 
4,375

 
1,875

Total long-term debt
 
1,147,009

 
1,132,201

 
1,228,392

 
1,133,165

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
Current maturity of term loan
 
4,375

 
4,375

 
4,375

 
1,875

Commercial paper(2)
 
324,250

 
323,692

 
323,692

 
262,600

Total short-term debt
 
328,625

 
328,067

 
328,067

 
264,475

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total debt
 
$
1,475,634

 
$
1,460,268

 
$
1,556,459

 
$
1,397,640


(1)
The term loan has higher priority than all other debt issues.
(2)
Commercial paper has priority over all other debt except the term loan.
(3)
All securities, other than the term loan, commercial paper and Junior Subordinated Debentures have equal priority with one another.
(4)
All Junior Subordinated Debentures have equal priority, but are subordinate to all other issues.
(5)
Not callable.
(6)
Callable anytime.
(7)
Callable subject to “make-whole” premium.
(8)
Redeemed on December 22, 2017.
(9)
Callable at any time on or after June15, 2021, and prior to this date upon the occurrence of a Tax Event or Rating Agency Event.
(10)
Callable at any time on or after November 17, 2022, and prior to this date upon the occurrence of a Tax Event or Rating Agency Event.
(11)
Assumed upon November 1, 2012 acquisition of Family Heritage.
(12)
Quarterly payments on the 15th of March, June, September, and December.
(13)
Interest paid at 3 Month LIBOR plus 330 basis points, resets each quarter.
(14)
Interest paid at 1 Month LIBOR plus 125 basis points, resets each month.
Schedule of Maturities of Long-term Debt
The following table presents expected scheduled principal payments under our contractual debt obligations:
 
Year Ended December 31,
 
2018
 
2019
 
2020
 
2021
 
2022
 
Thereafter
Debt obligations
$
328,625

 
$
299,522

 
$
9,375

 
$
77,500

 
$
150,000

 
$
610,612
Short-Term Borrowings
Credit Facility - Commercial Paper
 
At December 31,
 
2017
 
2016
Balance at end of period (at par value)
$
324,250

 
$
262,850

Annualized interest rate
1.78
%
 
0.96
%
Letters of credit outstanding
$
177,000

 
$
177,000

Remaining amount available under credit line
248,750

 
310,150


 
Year Ended December 31,
 
2017
 
2016
 
2015
Average balance outstanding during period
$
323,429

 
$
301,550

 
$
350,851

Daily-weighted average interest rate (annualized)
1.30
%
 
0.83
%
 
0.43
%
Maximum daily amount outstanding during period
$
455,912

 
$
412,676

 
$
458,110