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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Note 13—Stock-Based Compensation
Globe Life's stock-based compensation consists of stock options, restricted stock, restricted stock units, and performance shares. Certain employees and directors have been granted fixed equity options to buy shares of Globe Life stock at the market value of the stock on the date of grant, under the provisions of the Globe Life stock option plans. The options are exercisable during the period commencing from the date they vest until expiring according to the terms of the grant. Options generally expire the earlier of employee termination or option contract term, which are either seven-year or ten-year terms. Options generally vest in accordance with the following schedule:
Shares vested by period
Contract Period6 MonthsYear 1Year 2Year 3Year 4Year 5
Directors
7 years100%  —%  —%  —%  —%  —%  
Employees
7 years—%  —%  50%  50%  —%  —%  
Employees
10 years—%  —%  25%  25%  25%  25%  

All employee options vest immediately upon retirement on or after the attainment of age 65, upon death, or disability. Globe Life generally issues shares for the exercise of stock options from treasury stock. The Company generally uses the proceeds from option exercises to buy shares of Globe Life common stock in the open market to reduce the dilution from option exercises.
An analysis of shares available for grant is as follows:
Available for Grant
2019  2018  2017  
Balance at January 1,
9,422,760  2,964,320  5,088,461  
Approval of Torchmark Corporation 2018 Incentive Plan(1)
—  8,984,000  —  
Cancellation of available shares from prior plans—  (184,000) —  
Options expired and forfeited during year(2)
20,800  41,317  26,488  
Restricted stock expired and forfeited during year(3)
—  —  46,500  
Options granted during year(2)
(1,149,542) (1,262,037) (1,328,513) 
Restricted stock, restricted stock units, and performance shares granted(3)
(1,126,300) (1,120,840) (868,616) 
Balance at December 31,
7,167,718  9,422,760  2,964,320  
(1)See plan document referenced in Exhibits. Formerly, the Torchmark Corporation 2018 Incentive Plan.
(2)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.
(3)Plan allows for grant of restricted stock such that each stock grant reduces shares available for grant in a range from 3.10 shares to 3.88 shares.
A summary of stock compensation activity for each of the three years ended December 31, 2019 is presented below:
2019  2018  2017  
Stock-based compensation expense recognized(1)
$44,843  $39,792  $37,034  
Tax benefit recognized21,197  14,806  32,511  
(1)No stock-based compensation expense was capitalized in any period.

Additional stock compensation information is as follows at December 31:
2019  2018  
Unrecognized compensation(1)
$34,723  $38,627  
Weighted average period of expected recognition (in years)(1)
0.780.81
(1)Includes restricted stock and performance shares.

No equity awards were cash settled during the three years ended December 31, 2019.
Options: The following table summarizes information about stock options outstanding at December 31, 2019.
 Options OutstandingOptions 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 - $50.64
1,214,461  4.18$48.45  936,250  $47.81  
50.69 - 76.37
1,428,126  2.3353.12  1,364,239  53.10  
77.26
1,397,588  5.1677.26  640,526  77.26  
82.56 - 83.17
1,328,197  6.1682.56  20,717  82.77  
87.60 - 90.21
1,355,986  6.2787.64  38,056  89.08  
$29.59 - $90.21
6,724,358  4.80$70.07  2,999,788  $57.27  
An analysis of option activity for each of the three years ended December 31, 2019 is as follows:
2019  2018  2017  
OptionsWeighted-Average
Exercise Price		OptionsWeighted-Average
Exercise Price		OptionsWeighted-Average
Exercise Price
Outstanding—beginning of year
7,203,765  $61.72  6,753,801  $53.59  6,973,591  $44.64  
Granted:
7-year term
1,352,402  82.43  845,773  87.63  933,286  77.19  
10-year term
—  —  543,130  87.60  535,220  77.26  
Exercised(1,810,559) 45.93  (897,622) 40.21  (1,661,808) 36.84  
Expired and forfeited(21,250) 82.89  (41,317) 70.90  (26,488) 57.94  
Outstanding—end of year
6,724,358  $70.07  7,203,765  $61.72  6,753,801  $53.59  
Exercisable at end of year
2,999,788  $57.27  3,393,090  $48.18  2,928,979  $43.79  

Additional information about Globe Life's stock option activity as of December 31, 2019 and 2018 is as follows:
2019  2018  
Outstanding options:
Weighted-average remaining contractual term (in years)4.804.77
Aggregate intrinsic value$236,546  $114,161  
Exercisable options:
Weighted-average remaining contractual term (in years)3.272.89
Aggregate intrinsic value$143,935  $89,817  

Selected stock option activity for the three years ended December 31, 2019 is presented below:
2019  2018  2017  
Weighted-average grant-date fair value of options granted
(per share)		$14.20  $15.65  $12.88  
Intrinsic value of options exercised82,022  42,517  70,948  
Cash received from options exercised83,163  36,091  61,215  
Actual tax benefit received17,225  8,929  24,832  

Additional information concerning Globe Life's unvested options is as follows at December 31:
2019  2018  
Number of shares outstanding3,724,570  3,810,675  
Weighted-average exercise price (per share)$80.39  $73.78  
Weighted-average remaining contractual term (in years)6.046.45
Aggregate intrinsic value$92,611  $24,344  

Globe Life expects that substantially all unvested options will vest.
Restricted Stock: Restricted stock grants consist of time-vested grants, restricted stock units, and performance shares. Time-vested restricted stock is available to both senior executives and directors. The employee grants generally vest over five years and the director grants vest over six months. Restricted stock units are available only to directors. They vest over six months and are not converted to shares until the directors’ retirement, death, or disability. Director restricted stock and restricted stock units are generally granted on the first work day of the year.
Performance shares are granted to a limited number of senior executives. Performance shares have a three-year contract life and are not settled in shares until the termination of the three-year contract period. While the grant specifies a stated target number of shares, the determination of the actual settlement in shares will be based on the achievement of certain performance objectives of Globe Life over the respective three-year contract periods. Certain executive restricted stock and performance share grants contain terms related to age that could accelerate vesting.

Following are the restricted stock units outstanding for each of the three years ended December 31, 2019. All restricted stock units were fully vested at the end of each year of grant.
Year of grantsOutstanding as of year end
2017120,326  
2018102,116  
201971,006  

Below is the final determination of the performance share grants in 2015 to 2017:
Year of grantsFinal settlement of sharesFinal settlement date
2015149,898  February 27, 2018
2016311,399  February 28, 2019
2017271,843  February 26, 2020
For the 2018 and 2019 performance share grants, actual shares that could be distributed range from 0 to 318 thousand for the 2018 grants and 0 to 313 thousand shares for the 2019 grants.

A summary of restricted stock grants for each of the years in the three-year period ended December 31, 2019 is presented in the table below.
2019  2018  2017  
Directors restricted stock:
Shares8,840  10,805  9,135  
Price per share$76.37  $88.19  $73.92  
Aggregate value$675  $953  $675  
Percent vested as of 12/31/2019100 %100 %100 %
Directors restricted stock units (including dividend equivalents):
Shares6,634  7,688  7,735  
Price per share$77.50  $89.15  $74.45  
Aggregate value$514  $685  $576  
Percent vested as of 12/31/2019100 %100 %100 %
Performance shares:
Target shares156,500  159,000  153,000  
Target price per share$82.56  $87.60  $77.26  
Aggregate value$12,921  $13,928  $11,821  
Percent vested as of 12/31/2019— %— %— %

Time-vested restricted stockholders, both employees and directors, are entitled to dividend payments on the unvested stock. Restricted stock unit holders are entitled to dividend equivalents. These equivalents are granted in the form of additional restricted stock units and vest immediately upon grant. Dividend equivalents are applicable only to restricted stock units. Performance shareholders are not entitled to dividend equivalents and are not entitled to dividend payments until the shares are vested and settled.
An analysis of unvested restricted stock is as follows:
Executive
Restricted
Stock		Executive
Performance
Shares		Directors
Restricted
Stock		Directors
Restricted
Stock
Units		Total
2017:
Balance at January 1, 201757,450  432,424  1,894  —  491,768  
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, 201735,250  564,112  —  —  599,362  
2018:
Grants—  159,000  10,805  7,688  177,493  
Additional performance shares(1)
—  179,415  —  —  179,415  
Restriction lapses(23,250) (149,898) (10,805) (7,688) (191,641) 
Forfeitures—  —  —  —  —  
Balance at December 31, 201812,000  752,629  —  —  764,629  
2019:
Grants—  156,500  8,840  6,634  171,974  
Additional performance shares(1)
—  118,812  —  —  118,812  
Restriction lapses(12,000) (311,399) (8,840) (6,634) (338,873) 
Forfeitures—  —  —  —  —  
Balance at December 31, 2019—  716,542  —  —  716,542  
(1)Estimated additional (reduced) share grants expected due to achievement of performance criteria.

An analysis of the weighted-average grant-date fair values per share of unvested restricted stock is as follows for the year 2019:
Executive Restricted StockExecutive Performance SharesDirectors Restricted StockDirectors Restricted Stock Units
Grant-date fair value per share at January 1, 2019
$50.69  $67.06  $—  $—  
Grants—  82.56  76.37  76.37  
Estimated additional performance shares—  60.31  —  —  
Restriction lapses(50.69) (50.64) (76.37) (76.37) 
Forfeitures—  —  —  —  
Grant-date fair value per share at December 31, 2019
—  75.05  —  —