Globe Life's reportable segments are based on the insurance product lines it markets and administers: life insurance, supplemental health insurance, and annuities. These major product lines are set out as reportable segments because of the common characteristics of products within these categories, comparability of margins, and the similarity in regulatory environment and management techniques. There is also an investment segment which manages the investment portfolio, debt, and cash flow for the insurance segments and the corporate function. The Company's chief operating decision makers evaluate the overall performance of the operations of the Company in accordance with these segments.

Life insurance products marketed by Globe Life include traditional whole life and term life insurance. Health insurance products are generally guaranteed-renewable and include Medicare Supplement, critical illness, accident, and limited-benefit supplemental hospital and surgical coverage. Annuities include fixed-benefit contracts.

Globe Life markets its insurance products through a number of distribution channels, each of which sells the products of one or more of Globe Life's insurance segments. Our distribution channels consist of the following exclusive agencies, American Income Life Division (American Income), Liberty National Division (Liberty National) and Family Heritage Division (Family Heritage); an independent agency, United American Division (United American); and our Direct to Consumer Division (Direct to Consumer). The tables below present segment premium revenue by each of Globe Life's distribution channels.


	For the Year 2019
	Life					Health				Annuity			Total
Distribution Channel	Amount		% of Total	Amount		% of Total	Amount		% of Total	Amount		% of Total
American Income	$	1,160,495	46	$	99,447	9	$	—	—	$	1,259,942	35
Direct to Consumer	855,543		34	77,557		7	—		—	933,100		26
Liberty National	285,551		11	189,578		18	—		—	475,129		13
United American	10,571		1	416,582		39	4		100	427,157		12
Family Heritage	3,830		—	294,182		27	—		—	298,012		8
Other	201,794		8	—		—	—		—	201,794		6
	$	2,517,784	100	$	1,077,346	100	$	4	100	$	3,595,134	100


	For the Year 2018
	Life					Health				Annuity			Total
Distribution Channel	Amount		% of Total	Amount		% of Total	Amount		% of Total	Amount		% of Total
American Income	$	1,081,333	45	$	93,313	9	$	—	—	$	1,174,646	34
Direct to Consumer	828,935		34	76,297		7	—		—	905,232		26
Liberty National	278,878		12	191,378		19	—		—	470,256		14
United American	11,451		1	381,076		38	12		100	392,539		12
Family Heritage	3,501		—	273,275		27	—		—	276,776		8
Other	202,457		8	—		—	—		—	202,457		6
	$	2,406,555	100	$	1,015,339	100	$	12	100	$	3,421,906	100


	For the Year 2017
	Life					Health				Annuity			Total
Distribution Channel	Amount		% of Total	Amount		% of Total	Amount		% of Total	Amount		% of Total
American Income	$	999,279	43	$	89,036	9	$	—	—	$	1,088,315	33
Direct to Consumer	812,907		35	73,468		8	—		—	886,375		27
Liberty National	274,635		12	196,207		20	—		—	470,842		14
United American	12,547		1	364,128		37	15		100	376,690		12
Family Heritage	3,193		—	253,534		26	—		—	256,727		8
Other	203,986		9	—		—	—		—	203,986		6
	$	2,306,547	100	$	976,373	100	$	15	100	$	3,282,935	100

The measure of profitability established by the chief operating decision makers for insurance segments is underwriting margin before other income and administrative expenses, in accordance with the manner the segments are managed. It essentially represents gross profit margin on insurance products before insurance administrative expenses and consists primarily of premium less net policy benefits, acquisition expenses, and commissions. Required interest on net policy liabilities (benefit reserves less deferred acquisition costs) is reflected as a component of the Investment segment (rather than as a component of underwriting margin in the insurance and annuity segments) in order to match this cost with the investment income earned on the assets supporting the net policy liabilities.

The measure of profitability for the Investment segment is excess investment income, which represents the income earned on the investment portfolio in excess of net policy requirements and financing costs associated with Globe Life's debt. Other than the above-mentioned interest allocations and an intersegment commission, there are no other intersegment revenues or expenses. Expenses directly attributable to corporate operations are included in the “Corporate & Other” category. Stock-based compensation expense is considered a corporate expense by Globe Life management and is included in this category. All other unallocated revenues and expenses on a pretax basis, including insurance administrative expense, are also included in the “Corporate & Other” segment category.

Globe Life holds a sizable investment portfolio to support its insurance liabilities, the yield from which is used to offset policy benefit, acquisition, administrative and tax expenses. This yield or investment income is taken into account when establishing premium rates and profitability expectations of its insurance products. In holding such a portfolio, investments are sold, called, or written down from time to time, resulting in a realized gain or loss. These gains or losses generally occur as a result of disposition due to issuer calls, compliance with Company investment policies, or other reasons often beyond management’s control. Unlike investment income, realized gains and losses are incidental to insurance operations, and only overall yields are considered when setting premium rates or insurance product profitability expectations. While these gains and losses are not relevant to segment profitability or core operating results, they can have a material positive or negative result on net income. For these reasons, management removes realized investment gains and losses when it views its segment operations.

Management removes items that are related to prior periods when evaluating the operating results of current periods. Management also removes non-operating items unrelated to its core insurance activities when evaluating those results. Therefore, these items are excluded in its presentation of segment results, because accounting guidance requires that operating segment results be presented as management views its business. With the exception of the administrative settlements noted in the paragraphs above, all of these items are included in “Other operating expense” in the Consolidated Statements of Operations for the appropriate year. See additional detail below in the tables.


	Twelve Months Ended December 31, 2019
	Life		Health		Annuity		Investment		Corporate & Other		Adjustments			Consolidated
Revenue:
Premium	$	2,517,784	$	1,077,346	$	4	$	—	$	—	$	—		$	3,595,134
Net investment income	—		—		—		910,459		—		—			910,459
Other income	—		—		—		—		1,318		—			1,318
Total revenue	2,517,784		1,077,346		4		910,459		1,318		—			4,506,911
Expenses:
Policy benefits	1,638,053		687,764		31,532		—		—		—			2,357,349
Required interest on reserves	(666,168)		(87,289)		(43,522)		796,979		—		—			—
Required interest on DAC	202,502		25,435		494		(228,431)		—		—			—
Amortization of acquisition costs	436,881		112,825		2,020		—		—		—			551,726
Commissions, premium taxes, and non-deferred acquisition costs	203,052		94,973		22		—		—		—			298,047
Insurance administrative expense⁽¹⁾	—		—		—		—		240,321		8,758		(2,3)	249,079
Parent expense	—		—		—		—		10,260		643		(4)	10,903
Stock-based compensation expense	—		—		—		—		44,843		—			44,843
Interest expense	—		—		—		84,306		—		—			84,306
Total expenses	1,814,320		833,708		(9,454)		652,854		295,424		9,401			3,596,253
Subtotal	703,464		243,638		9,458		257,605		(294,106)		(9,401)			910,658
Non-operating items	—		—		—		—		—		9,401		(2,3,4)	9,401
Measure of segment profitability (pretax)	$	703,464	$	243,638	$	9,458	$	257,605	$	(294,106)	$	—		920,059

Realized gain (loss)—investments																20,621
Administrative settlements																(400)
Legal proceedings																(8,358)
Non-operating fees																(643)
Income before income taxes per Consolidated Statements of Operations																$	931,279


	Twelve Months Ended December 31, 2018
	Life		Health		Annuity		Investment		Corporate & Other		Adjustments			Consolidated
Revenue:
Premium	$	2,406,555	$	1,015,339	$	12	$	—	$	—	$	—		$	3,421,906
Net investment income	—		—		—		882,512		—		—			882,512
Other income	—		—		—		—		1,236		(99)		(2)	1,137
Total revenue	2,406,555		1,015,339		12		882,512		1,236		(99)			4,305,555
Expenses:
Policy benefits	1,591,790		649,188		34,264		—		—		—			2,275,242
Required interest on reserves	(636,040)		(83,243)		(47,357)		766,640		—		—			—
Required interest on DAC	194,297		24,412		589		(219,298)		—		—			—
Amortization of acquisition costs	414,200		100,376		2,114		—		—		—			516,690
Commissions, premium taxes, and non-deferred acquisition costs	190,007		88,553		26		—		—		(99)		(2)	278,487
Insurance administrative expense⁽¹⁾	—		—		—		—		223,941		3,590		(3)	227,531
Parent expense	—		—		—		—		10,684		1,578		(4)	12,262
Stock-based compensation expense	—		—		—		—		39,792		—			39,792
Interest expense	—		—		—		90,076		—		—			90,076
Total expenses	1,754,254		779,286		(10,364)		637,418		274,417		5,069			3,440,080
Subtotal	652,301		236,053		10,376		245,094		(273,181)		(5,168)			865,475
Non-operating items	—		—		—		—		—		5,168		(3,4)	5,168
Measure of segment profitability (pretax)	$	652,301	$	236,053	$	10,376	$	245,094	$	(273,181)	$	—		870,643

Realized gain (loss)—investments																9,274
Realized loss—redemption of debt																(11,078)
Administrative settlements																(3,590)
Non-operating fees																(1,578)
Income before income taxes per Consolidated Statements of Operations																$	863,671


	Twelve Months Ended December 31, 2017
	Life		Health		Annuity		Investment		Corporate & Other		Adjustments			Consolidated
Revenue:
Premium	$	2,306,547	$	976,373	$	15	$	—	$	—	$	—		$	3,282,935
Net investment income	—		—		—		847,885		—		—			847,885
Other income	—		—		—		—		1,270		(128)		(2)	1,142
Total revenue	2,306,547		976,373		15		847,885		1,270		(128)			4,131,962
Expenses:
Policy benefits	1,549,602		628,640		35,836		—		—		13,797		(3,4)	2,227,875
Required interest on reserves	(607,007)		(77,792)		(49,571)		734,370		—		—			—
Required interest on DAC	186,236		23,454		690		(210,380)		—		—			—
Amortization of acquisition costs	396,268		96,519		2,466		—		—		(4,850)		(4)	490,403
Commissions, premium taxes, and non-deferred acquisition costs	177,111		86,044		32		—		—		1,673		(2,5)	264,860
Insurance administrative expense⁽¹⁾	—		—		—		—		210,590		—			210,590
Parent expense	—		—		—		—		9,631		—			9,631
Stock-based compensation expense	—		—		—		—		33,654		3,380		(6)	37,034
Interest expense	—		—		—		84,532		—		—			84,532
Total expenses	1,702,210		756,865		(10,547)		608,522		253,875		14,000			3,324,925
Subtotal	604,337		219,508		10,562		239,363		(252,605)		(14,128)			807,037
Non-operating items											14,128		(3,4,5,6)	14,128
Measure of segment profitability (pretax)	$	604,337	$	219,508	$	10,562	$	239,363	$	(252,605)	$	—		821,165

Realized gain (loss)—investments																27,652
Realized loss—redemption of debt																(4,041)
Administrative settlements																(8,659)
Non-operating fees																(288)
Guaranty fund assessments																(1,801)
Stock-based compensation expense—Tax reform adjustment																(3,380)
Income before income taxes per Consolidated Statements of Operations																$	830,648

(3)In 2017, the Company recorded $8.7 million ($5.6 million, net of tax) in administrative settlements where claims were not properly filed or information to support the validity of the claim had not been properly submitted. These administrative settlements were included in "Policyholder benefits" in the Consolidated Statements of Operations.

Assets for each segment are reported based on a specific identification basis. The insurance segments’ assets contain DAC. The investment segment includes the investment portfolio, cash, and accrued investment income. Goodwill is assigned to the insurance segments at the time of purchase. All other assets are included in the Corporate & Other category. The tables below reconcile segment assets to total assets as reported in the consolidated financial statements.


	At December 31, 2019
	Life		Health		Annuity		Investment		Corporate & Other		Consolidated
Cash and invested assets	$	—	$	—	$	—	$	19,923,204	$	—	$	19,923,204
Accrued investment income	—		—		—		245,129		—		245,129
Deferred acquisition costs	3,768,797		569,126		4,018		—		—		4,341,941
Goodwill	309,609		131,982		—		—		—		441,591
Other assets	—		—		—		—		1,025,595		1,025,595
Total assets	$	4,078,406	$	701,108	$	4,018	$	20,168,333	$	1,025,595	$	25,977,460


	At December 31, 2018
	Life		Health		Annuity		Investment		Corporate & Other		Consolidated
Cash and invested assets	$	—	$	—	$	—	$	17,239,570	$	—	$	17,239,570
Accrued investment income	—		—		—		243,003		—		243,003
Deferred acquisition costs	3,580,693		548,640		8,592		—		—		4,137,925
Goodwill	309,609		131,982		—		—		—		441,591
Other assets	—		—		—		—		1,033,633		1,033,633
Total assets	$	3,890,302	$	680,622	$	8,592	$	17,482,573	$	1,033,633	$	23,095,722

Liabilities for each segment are reported also on a specific identification basis similar to the assets. The insurance segments' liabilities contain future policy benefits, unearned and advance premiums, and policy claims and other benefits payable. Other policyholders' funds are included in Other as well as current and deferred income taxes payable. Debt represents both short and long-term. The tables below reconcile segment liabilities to total liabilities as reported in the consolidated financial statements.


	At December 31, 2019
	Life		Health		Annuity		Investment		Corporate & Other		Consolidated
Future policy benefits	$	11,403,078	$	2,006,424	$	1,098,632	$	—	$	—	$	14,508,134
Unearned and advance premiums	17,701		46,008		—		—		—		63,709
Policy claims and other benefits payable	201,594		163,808		—		—		—		365,402
Debt	—		—		—		1,647,726		—		1,647,726
Other	—		—		—		—		2,098,182		2,098,182
Total liabilities	$	11,622,373	$	2,216,240	$	1,098,632	$	1,647,726	$	2,098,182	$	18,683,153


	At December 31, 2018
	Life		Health		Annuity		Investment		Corporate & Other		Consolidated
Future policy benefits	$	10,847,356	$	1,927,732	$	1,178,738	$	—	$	—	$	13,953,826
Unearned and advance premiums	17,850		43,358		—		—		—		61,208
Policy claims and other benefits payable	196,298		154,528		—		—		—		350,826
Debt	—		—		—		1,665,033		—		1,665,033
Other	—		—		—		—		1,649,652		1,649,652
Total liabilities	$	11,061,504	$	2,125,618	$	1,178,738	$	1,665,033	$	1,649,652	$	17,680,545