Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

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

Grant Contract Periods and Vesting Periods

Options generally vest in accordance with the following schedule:

		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
	2017		2016		2015
Balance at January 1,	5,088,461		6,872,282		8,458,593
Options expired and forfeited during year(1)	26,488		8,518		90,371
Restricted stock expired and forfeited during year(2)	46,500		—		89,745
Options granted during year(1)	(1,328,513	)	(1,306,306	)	(1,334,514	)
Restricted stock, restricted stock units, and performance shares granted under the Torchmark Corporation 2011 Incentive Plan(2)	(868,616	)	(486,033	)	(431,913	)
Balance at December 31,	2,964,320		5,088,461		6,872,282

(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, 2017 is presented below:

	2017		2016		2015
Weighted-average grant-date fair value of options granted (per share)	$	12.88	$	9.04	$	11.97
Intrinsic value of options exercised	70,948		73,995		54,854
Cash received from options exercised	61,215		61,329		35,958
Actual tax benefit received	24,832		25,898		24,470

A summary of stock compensation activity for each of the three years ended December 31, 2017 is presented below:

	2017		2016		2015
Stock-based compensation expense recognized(1)	$	37,034	$	26,326	$	28,664
Tax benefit recognized	32,511		27,867		10,033

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

Schedule of Additional Information of Stock-Based Compensation

Additional information about Torchmark’s stock option activity as of December 31, 2017 and 2016 is as follows:

	2017		2016
Outstanding options:
Weighted-average remaining contractual term (in years)	4.89		4.70
Aggregate intrinsic value	$	231,277	$	87,286
Exercisable options:
Weighted-average remaining contractual term (in years)	2.99		2.96
Aggregate intrinsic value	$	137,424	$	63,395

Additional stock compensation information is as follows at December 31:

	2017		2016
Unrecognized compensation(1)	$	31,309	$	27,334
Weighted average period of expected recognition (in years)(1)	0.86		0.89

(1) Includes restricted stock and performance shares.

Summary of Options Outstanding

The following table summarizes information about stock options outstanding at December 31, 2017.

	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
$29.59 - $37.40	1,421,268	2.20	$	34.54	1,366,689	$	34.42
50.64	1,405,725	6.39	50.64		—	—
50.69 - 51.62	1,090,703	3.69	50.70		958,463	50.70
53.61 - 56.32	1,384,582	4.63	53.65		594,184	53.71
73.92 - 77.26	1,451,523	7.23	77.24		9,643	73.92
$29.59 - $77.26	6,753,801	4.89	$	53.59	2,928,979	$	43.79

Analysis of Option Activity

An analysis of option activity for each of the three years ended December 31, 2017 is as follows:

	2017				2016				2015
	Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price
Outstanding—beginning of year	6,973,591		$	44.64	7,734,841		$	38.84	7,889,321		$	32.91
Granted:
7-year term	933,286		77.19		834,212		50.78		1,220,751		53.62
10-year term	535,220		77.26		597,225		50.64		296,875		53.61
Exercised	(1,661,808	)	36.84		(2,184,169	)	28.08		(1,576,485	)	22.81
Expired and forfeited	(26,488	)	57.94		(8,518	)	39.35		(95,621	)	48.85
Outstanding—end of year	6,753,801		$	53.59	6,973,591		$	44.64	7,734,841		$	38.84
Exercisable at end of year	2,928,979		$	43.79	3,115,847		$	36.81	3,774,061		$	29.37

Schedule of Additional Information on Unvested Options

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

	2017		2016
Number of shares outstanding	3,824,822		3,857,744
Weighted-average exercise price (per share)	$	61.10	$	50.97
Weighted-average remaining contractual term (in years)	6.34		6.11
Aggregate intrinsic value	$	113,246	$	23,891

Schedule of Performance Shares Settled

Below is the final determination of the performance share grants in 2013 to 2015:

Year of grants	Final settlement of shares	Final settlement date
2013	159,020	February 24, 2016
2014	119,896	February 21, 2017
2015	149,898	February 27, 2018

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, 2017 is presented in the table below.

	2017			2016			2015
Directors restricted stock:
Shares	9,135			12,549			6,648
Price per share	$	73.92		$	57.39		$	54.16
Aggregate value	$	675		$	720		$	360
Percent vested as of 12/31/17	100		%	85		%	100		%
Directors restricted stock units (including dividend equivalents):
Shares	7,735			6,912			7,640
Price per share	$	74.45		$	56.74		$	54.44
Aggregate value	$	576		$	392		$	416
Percent vested as of 12/31/17	100		%	100		%	100		%
Performance shares:
Target shares	153,000			167,500			179,500
Target price per share	$	77.26		$	50.64		$	53.61
Assumed adjustment for performance objectives (in shares)	106,084			(35,073		)	(58,056		)
Aggregate value	$	11,821		$	8,482		$	9,623
Percent vested as of 12/31/17	—		%	—		%	—		%

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
2015:
Balance at January 1, 2015	263,430		556,360		—		—		819,790
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
2017:
Grants	—		153,000		9,135		7,735		169,870
Additional performance shares(1)			106,084						106,084
Restriction lapses	(14,700	)	(119,896	)	(11,029	)	(7,735	)	(153,360	)
Forfeitures	(7,500	)	(7,500	)					(15,000	)
Balance at December 31, 2017	35,250		564,112		—		—		599,362

(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 2017:

	Executive Restricted Stock			Executive Performance Shares			Directors Restricted Stock			Directors Restricted Stock Units
Grant-date fair value per share at January 1, 2017	$	38.46		$	49.79		$	63.39
Grants	—			77.26			73.92			$	73.92
Estimated additional performance shares				71.76
Restriction lapses	(30.69		)	(72.42		)	(72.11		)	(73.92		)
Forfeitures	(37.40		)	(43.85		)
Grant-date fair value per share at December 31, 2017	41.93			56.64