XML 313 R35.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Total Cost of Retirement Plans Charged to Operations
The total cost of these retirement plans charged to operations was as follows:
Year Ended December 31,
201920182017
Plan Type:
Defined Contribution Plans(1)
$4,817  $4,068  $4,145  
Defined Benefit Pension Plans(2)
24,134  32,593  28,828  
(1)401K plans.
(2)Qualified pension plans and SERP.
Pension Assets by Component at Fair Value The following table presents the assets of the Company's defined benefit pension plans at December 31, 2019 and 2018.
Pension Assets by Component at December 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
% to
Total
Corporate bonds:
Financial$—  $51,111  $—  $51,111  11  
Utilities—  42,758  —  42,758  9  
Energy—  21,907  —  21,907  5  
Other corporates—  89,725  —  89,725  19  
Total corporate bonds—  205,501  —  205,501  44  
Exchange traded fund(1)
207,176  —  —  207,176  44  
Other bonds—  251  —  251  —  
Guaranteed annuity contract(2)
—  28,278  —  28,278  6  
Short-term investments8,414  —  —  8,414  2  
Other6,876  —  —  6,876  1  
$222,466  $234,030  $—  456,496  97  
Other long-term investments(3)
12,267  3  
Total pension assets
$468,763  100  
(1)A fund including marketable securities that mirror the S&P 500 index.
(2)Representing a guaranteed annuity contract issued by Globe Life's subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Life Insurance Company Non-Exempt Employees Defined Benefit Pension Plan ("American Income Pension Plan").
(3)Included in other long-term investments is an investment fund that reports the Pension Plan's pro-rata share of the limited partnership's net asset value per share or its equivalent (NAV), as a practical expedient for fair value. The Pension Plan owns approximately 1% of the investment fund. As of December 31, 2019, the expected term of the investment fund is approximately 5 years and the unfunded commitment of the investment fund is $4.1 million. The investment is non-redeemable. The investment fund strategy is opportunistic, applying a comprehensive relative value approach across various asset classes and opportunities in public and private markets, geographies, and capital structures.
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
% to
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  —  
Guaranteed annuity contract(2)
—  26,505  —  26,505  7  
Short-term investments9,289  —  —  9,289  2  
Other3,816  —  —  3,816  1  
$170,822  $213,375  $—  384,197  98  
Other long-term investments(3)
8,475  2  
Total pension assets
$392,672  100  
(1)A fund including marketable securities that mirror the S&P 500 index.
(2)Representing a guaranteed annuity contract issued by Globe Life's subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Pension Plan.
(3)Included in other long-term investments is an investment fund that reports the Pension Plan's pro-rata share of the limited partnership's net asset value per share or its equivalent (NAV), as a practical expedient for fair value. The Pension Plan owns approximately 1% of the investment fund. As of December 31, 2018, the expected term of the investment fund is approximately 6 years and the unfunded commitment of the investment fund is $7.1 million. The investment is non-redeemable. The investment fund strategy is opportunistic, applying a comprehensive relative value approach across various asset classes and opportunities in public and private markets, geographies, and capital structures.
Information Regarding the SERP The following table includes premiums paid for the company owned life insurance (COLI), for the three years ended December 31, 2019 and investments of the Rabbi Trust for the two years ended December 31, 2019.
Year Ended December 31,
201920182017
Premiums paid for COLI$2,394  $2,997  $2,050  
At December 31,
20192018
Total investments:
COLI$47,733  $44,285  
Exchange traded funds65,585  52,659  
$113,318  $96,944  
Pension Liability The following table presents projected benefit obligation (PBO) and accumulated benefit obligation (ABO) for the defined benefit pension plans and SERP at December 31, 2019 and 2018.
Pension Liability
December 31,
20192018
PBOABOPBOABO
Funded defined benefit pension$578,860  $520,264  $481,792  $436,316  
SERP86,347  81,046  74,407  69,582  
Pension Benefit Obligation
$665,207  $601,310  $556,199  $505,898  
Weighted Average Pension Plan Assumptions
The following table discloses the assumptions used to determine Globe Life's pension liabilities and costs for the appropriate periods. The discount and compensation increase rates are used to determine current year projected benefit obligations and subsequent year pension expense. The long-term rate of return is used to determine current year expense. Differences between assumptions and actual experience are included in actuarial gain or loss.

Weighted Average Pension Plan Assumptions
For Benefit Obligations at December 31:2019  2018  
Discount rate3.49 %4.37 %
Rate of compensation increase4.00  4.00  
For Periodic Benefit Cost for the Year:2019  2018  2017  
Discount rate4.37 %3.75 %4.27 %
Expected long-term returns6.72  6.72  6.96  
Rate of compensation increase4.00  4.37  4.31  
Components of Net Periodic Pension Costs and Post-Retirement Benefit Costs
Net periodic benefit cost for the defined benefit plans by expense component was as follows:
 Year Ended December 31,
 201920182017
Service cost—benefits earned during the period$19,929  $21,092  $17,942  
Interest cost on projected benefit obligation23,827  22,303  22,124  
Expected return on assets(27,862) (25,547) (23,597) 
Net amortization8,211  15,003  12,281  
Recognition of actuarial loss29  (258) 78  
Net periodic benefit cost
$24,134  $32,593  $28,828  
Analysis of Impact on Other Comprehensive Income (Loss)
An analysis of the impact on other comprehensive income (loss) concerning pensions and other postretirement benefits is as follows:
Year Ended December 31,
201920182017
Balance at January 1
$(150,071) $(193,380) $(173,883) 
Amortization of:
Prior service cost631  535  476  
Net actuarial (gain) loss(1)
7,843  14,560  11,960  
Total amortization8,474  15,095  12,436  
Plan amendments—  (2,377) —  
Experience gain (loss)(40,636) 30,591  (31,933) 
Balance at December 31
$(182,233) $(150,071) $(193,380) 
(1)Includes amortization of postretirement benefits other than pensions of $265 thousand in 2019, $92 thousand in 2018, and $155 thousand in 2017.
Reconciliation of Benefit Obligation and Plan Assets
The following table presents a reconciliation from the beginning to the end of the year of the PBO and plan assets for the defined benefit plans and SERP. This table also presents the amounts previously recognized as a component of accumulated other comprehensive income.

Pension Benefits
Year Ended December 31,
2019  2018  
Changes in PBO:
PBO at beginning of year$556,199  $602,606  
Service cost19,929  21,092  
Interest cost23,827  22,303  
Plan amendments—  2,377  
Actuarial loss (gain)88,053  (67,270) 
Benefits paid(22,801) (24,909) 
PBO at end of year665,207  556,199  
Changes in plan assets:
Fair value at beginning of year392,672  377,624  
Return on assets77,290  (12,824) 
Contributions21,602  52,781  
Benefits paid(22,801) (24,909) 
Fair value at end of year468,763  392,672  
Funded status at year end
$(196,444) $(163,527) 
Schedule of Amounts Recognized as Components Accumulated Other Comprehensive Income
Amounts recognized in accumulated other comprehensive income consist of:
Net loss (gain)$174,470  $143,453  
Prior service cost5,345  5,976  
Net amounts recognized at year end$179,815  $149,429  
Portion of Other Comprehensive Income Expected to Be Reflected in Pension Expense in Next Year
The portion of other comprehensive income that is expected to be reflected in pension expense in 2020 is as follows:
Amortization of prior service cost$631  
Amortization of net actuarial loss15,611  
Total$16,242  
Estimated Future Payments for Post-Retirement Benefit Plans
Globe Life has estimated its expected pension benefits to be paid over the next ten years as of December 31, 2019. These estimates use the same assumptions that measure the benefit obligation at December 31, 2019, taking estimated future employee service into account. Those estimated benefits are as follows:
For the year(s): 
2020  $22,639  
2021  24,448  
2022  26,560  
2023  28,371  
2024  30,348  
2025-2029173,848