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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2020
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
202020192018
Balance at January 1,
7,167,718 9,422,760 2,964,320 
Approval of Globe Life Inc. 2018 Incentive Plan.(1)
— — 8,984,000 
Cancellation of available shares from prior plans— — (184,000)
Expired and forfeited during year(2,3)
38,820 20,800 41,317 
Options granted during year(2)
(1,127,610)(1,149,542)(1,262,037)
Restricted stock, restricted stock units, and performance shares granted(3)
(94,510)(1,126,300)(1,120,840)
Balance at December 31,
5,984,418 7,167,718 9,422,760 
(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, 2020 is presented below:
202020192018
Stock-based compensation expense recognized(1)
$35,892 $44,843 $39,792 
Tax benefit recognized12,550 21,197 14,806 
(1)No stock-based compensation expense was capitalized in any period.

Additional stock compensation information is as follows at December 31:
20202019
Unrecognized compensation(1)
$28,125 $34,723 
Weighted average period of expected recognition (in years)(1)
0.650.78
(1)Includes restricted stock and performance shares.

No equity awards were cash settled during the three years ended December 31, 2020.
Options: The following table summarizes information about stock options outstanding at December 31, 2020.
 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 - $76.37
1,736,807 2.77$51.29 1,598,580 $51.34 
77.26
1,372,680 4.1177.26 1,142,879 77.26 
82.56 - 83.17
1,327,447 5.1582.56 33,217 82.69 
87.60 - 90.21
1,347,698 5.2487.64 573,454 87.70 
100.74 - 105.56
1,326,599 6.16100.85 41,269 104.39 
$29.59 - $105.56
7,111,231 4.57$78.28 3,389,399 $67.19 
An analysis of option activity for each of the three years ended December 31, 2020 is as follows:

202020192018
OptionsWeighted-Average
Exercise Price		OptionsWeighted-Average
Exercise Price		OptionsWeighted-Average
Exercise Price
Outstanding—beginning of year
6,724,358 $70.07 7,203,765 $61.72 6,753,801 $53.59 
Granted:
7-year term
1,326,599 100.85 1,352,402 82.43 845,773 87.63 
10-year term
— — — — 543,130 87.60 
Exercised(936,289)51.37 (1,810,559)45.93 (897,622)40.21 
Expired and forfeited(3,437)75.27 (21,250)82.89 (41,317)70.90 
Outstanding—end of year
7,111,231 $78.28 6,724,358 $70.07 7,203,765 $61.72 
Exercisable at end of year
3,389,399 $67.19 2,999,788 $57.27 3,393,090 $48.18 

Additional information about Globe Life's stock option activity as of December 31, 2020 and 2019 is as follows:

20202019
Outstanding options:
Weighted-average remaining contractual term (in years)4.574.80
Aggregate intrinsic value$126,467 $236,546 
Exercisable options:
Weighted-average remaining contractual term (in years)3.423.27
Aggregate intrinsic value$94,527 $143,935 

Selected stock option activity for the three years ended December 31, 2020 is presented below:

202020192018
Weighted-average grant-date fair value of options granted
(per share)		$14.64 $14.20 $15.65 
Intrinsic value of options exercised40,517 82,022 42,517 
Cash received from options exercised48,093 83,163 36,091 
Actual tax benefit received8,508 17,225 8,929 

Additional information concerning Globe Life's unvested options is as follows at December 31:

20202019
Number of shares outstanding3,721,832 3,724,570 
Weighted-average exercise price (per share)$88.37 $80.39 
Weighted-average remaining contractual term (in years)5.626.04
Aggregate intrinsic value$31,941 $92,611 

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, 2020. All restricted stock units were fully vested at the end of each year of grant.
Year of grantsOutstanding as of year end
2018102,116 
201971,006 
202077,167 

Below is the final determination of the performance share grants in 2016 to 2018:
Year of grantsFinal settlement of sharesFinal settlement date
2016311,399 February 28, 2019
2017271,843 February 26, 2020
2018210,155 February 24, 2021
For the 2019 and 2020 performance share grants, actual shares that could be distributed range from 0 to 313 thousand for the 2019 grants and 0 to 227 thousand shares for the 2020 grants.

A summary of restricted stock grants for each of the years in the three-year period ended December 31, 2020 is presented in the table below.
202020192018
Directors restricted stock:
Shares4,548 8,840 10,805 
Price per share$105.56 $76.37 $88.19 
Aggregate value$480 $675 $953 
Percent vested as of 12/31/2020100 %100 %100 %
Directors restricted stock units (including dividend equivalents):
Shares6,161 6,634 7,688 
Price per share$103.32 $77.50 $89.15 
Aggregate value$637 $514 $685 
Percent vested as of 12/31/2020100 %100 %100 %
Performance shares:
Target shares151,200 156,500 159,000 
Target price per share$100.74 $82.56 $87.60 
Aggregate value$15,232 $12,921 $13,928 
Percent vested as of 12/31/2020— %— %— %
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 nonvested restricted stock is as follows:
Executive
Restricted
Stock		Executive
Performance
Shares		Directors
Restricted
Stock		Directors
Restricted
Stock
Units		Total
2018:
Balance at January 1, 201835,250 564,112 — — 599,362 
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 
2020:
Grants— 151,200 4,548 6,161 161,909 
Additional performance shares(1)
— (65,473)— — (65,473)
Restriction lapses— (271,843)(4,548)(6,161)(282,552)
Forfeitures— (11,450)— — (11,450)
Balance at December 31, 2020— 518,976 — — 518,976 
(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 nonvested restricted stock is as follows for the year 2020:
Executive Restricted StockExecutive Performance SharesDirectors Restricted StockDirectors Restricted Stock Units
Grant-date fair value per share at January 1, 2020
$— $75.05 $— $— 
Grants— 100.74 105.56 105.56 
Estimated additional performance shares— (40.99)— — 
Restriction lapses— (77.26)(105.56)(105.56)
Forfeitures— (77.26)— — 
Grant-date fair value per share at December 31, 2020
— 90.13 — —