Postretirement Benefits

6 Months Ended

Jun. 30, 2018

Retirement Benefits [Abstract]

Postretirement Benefits

Postretirement Benefits

The following tables present a summary of post-retirement benefit costs by component for the three and six month periods ended June 30, 2018 and 2017.

Components of Post-Retirement Benefit Costs

	Three Months Ended June 30,
	Pension Benefits						Other Benefits
	2018			2017			2018		2017
Service cost	$	5,277		$	4,484		$	—	$	—
Interest cost	5,493			5,551			228		250
Expected return on assets	(6,363		)	(5,898		)	—		—
Amortization:
Prior service cost	119			119			—		—
Actuarial (gain) loss	3,636			2,952			23		38
Direct recognition of expense	—			—			85		116
Net periodic benefit cost	$	8,162		$	7,208		$	336	$	404
	Six Months Ended June 30,
	Pension Benefits						Other Benefits
	2018			2017			2018		2017
Service cost	$	10,554		$	8,971		$	—	$	—
Interest cost	10,986			11,101			456		500
Expected return on assets	(12,726		)	(11,797		)	—		—
Amortization:
Prior service cost	238			238			—		—
Actuarial (gain)/loss	7,272			5,903			46		77
Direct recognition of expense	—			—			225		212
Net periodic benefit cost	$	16,324		$	14,416		$	727	$	789

The following tables present the assets of Torchmark’s defined benefit pension plans at June 30, 2018 and December 31, 2017.

Pension Assets by Component at June 30, 2018

	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
Corporate bonds:
Financial	$		$	46,501	$		$	46,501	12
Utilities			40,032				40,032		10
Energy			23,551				23,551		6
Other corporates			67,960				67,960		17
Total corporate bonds	—		178,044		—		178,044		45
Exchange traded fund(1)	168,743						168,743		43
Other bonds			245				245		—
Other long-term investments			3,998				3,998		1
Guaranteed annuity contract(2)			21,427				21,427		5
Short-term investments	18,660						18,660		5
Other	1,866						1,866		1
Grand Total	$	189,269	$	203,714	$	—	$	392,983	100

(1) A fund including marketable securities that mirror the S&P 500 index.

(2) Representing 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, 2017

	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
Corporate bonds:
Financial	$		$	43,451	$		$	43,451	12
Utilities			46,144				46,144		12
Energy			25,023				25,023		7
Other corporates			65,888				65,888		17
Total corporate bonds	—		180,506		—		180,506		48
Exchange traded fund(1)	164,351						164,351		43
Other bonds			256				256		—
Other long-term investments			2,304				2,304		1
Guaranteed annuity contract(2)			21,202				21,202		6
Short-term investments	3,984						3,984		1
Other	5,021						5,021		1
Grand Total	$	173,356	$	204,268	$	—	$	377,624	100

(1) A fund including marketable securities that mirror the S&P 500 index.

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

The following table presents liabilities for the defined-benefit pension plans at June 30, 2018 and December 31, 2017.

Pension Liability

	June 30, 2018		December 31, 2017
Funded defined benefit pension	$	509,965	$	518,141
SERPs(1)	85,382		84,465
Pension Benefit Obligation	$	595,347	$	602,606

(1) Supplemental executive retirement plan (SERP).

The following table includes information regarding the SERPs at June 30, 2018 and December 31, 2017.

	June 30, 2018		December 31, 2017
Premiums paid for insurance coverage	$	1,047	$	2,050
Total investments:
Company owned life insurance	$	41,872	$	40,273
Exchange traded funds	55,051		55,442
	$	96,923	$	95,715
Liability:
Active plan	$	82,862	$	81,457
Closed plan	2,520		3,008
	$	85,382	$	84,465