Postretirement Benefits (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Assets at Fair Value for Defined-Benefit Pension Plans

The following tables present the assets of Torchmark’s defined benefit pension plans at March 31, 2019 and December 31, 2018.

Pension Assets by Component at March 31, 2019



	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		% of Total
Corporate bonds:
Financial	$	—	$	42,967	$	—	$	42,967	10
Utilities	—		40,077		—		40,077		10
Energy	—		20,765		—		20,765		5
Other corporates	—		86,217		—		86,217		21
Total corporate bonds	—		190,026		—		190,026		46
Exchange traded fund⁽¹⁾	178,120		—		—		178,120		43
Other bonds	—		249		—		249		—
Other long-term investments	—		9,903		—		9,903		2
Guaranteed annuity contract⁽²⁾	—		26,604		—		26,604		6
Short-term investments	8,212		—		—		8,212		2
Other	4,965		—		—		4,965		1
Total pension assets	$	191,297	$	226,782	$	—	$	418,079	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, 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		% of Total
Corporate bonds:
Financial	$	—	$	44,236	$	—	$	44,236	11
Utilities	—		39,443		—		39,443		10
Energy	—		19,744		—		19,744		5
Other corporates	—		83,202		—		83,202		22
Total corporate bonds	—		186,625		—		186,625		48
Exchange traded fund⁽¹⁾	157,717		—		—		157,717		40
Other bonds	—		245		—		245		—
Other long-term investments	—		8,475		—		8,475		2
Guaranteed annuity contract⁽²⁾	—		26,505		—		26,505		7
Short-term investments	9,289		—		—		9,289		2
Other	3,816		—		—		3,816		1
Total pension assets	$	170,822	$	221,850	$	—	$	392,672	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.

Schedule of Defined Benefit Plans Disclosures

The following table includes information regarding the SERP at March 31, 2019 and December 31, 2018.



	March 31, 2019		December 31, 2018

Premiums paid for insurance coverage	$	444	$	2,997

Total investments:
Company owned life insurance	$	45,021	$	44,285
Exchange traded funds	56,926		52,659
	$	101,947	$	96,944

Pension Liability

The following table presents liabilities for the defined benefit pension plans and SERP at March 31, 2019 and December 31, 2018.



	March 31, 2019		December 31, 2018
Funded defined benefit pension	$	509,998	$	481,792
SERP	74,655		74,407
Pension Benefit Obligation	$	584,653	$	556,199

Summary of Post-Retirement Benefit Costs by Component

The following table presents the net periodic benefit costs for the defined benefit plans and SERP by expense components for the three month periods ended March 31, 2019 and 2018.

Components of Net Periodic Benefit Cost



	Three Months Ended March 31,
	2019			2018
Service cost	$	4,982		$	5,277
Interest cost	5,964			5,493
Expected return on assets	(6,966		)	(6,363		)
Amortization:
Prior service cost	158			119
Actuarial (gain) loss	1,894			3,636
Net periodic benefit cost	$	6,032		$	8,162