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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2021
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 members of the board of directors (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
202120202019
Balance at January 1,
5,984,418 7,167,718 9,422,760 
Expired and forfeited during year(1,2)
39,559 38,820 20,800 
Options granted during year(1)
(1,091,495)(1,127,610)(1,149,542)
Restricted stock, restricted stock units, and performance shares granted(2)
(205,394)(94,510)(1,126,300)
Balance at December 31,
4,727,088 5,984,418 7,167,718 
(1)Plan allows for grant of options such that each grant reduces shares available for grant in a range from 0.85 share to 1.0 share.
(2)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, 2021, is presented below:
202120202019
Stock-based compensation expense recognized(1)
$30,272 $35,892 $44,843 
Tax benefit recognized11,954 12,550 21,197 
(1)No stock-based compensation expense was capitalized in any period in accordance with applicable GAAP.

Additional stock compensation information is as follows at December 31:
20212020
Unrecognized compensation(1)
$26,602 $28,125 
Weighted average period of expected recognition (in years)(1)
0.570.65
(1)Includes restricted stock and performance shares.

No equity awards were cash settled during the three years ended December 31, 2021.
Options: The following table summarizes information about stock options outstanding at December 31, 2021.
 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 - $77.26
2,025,118 2.78$66.39 1,916,991 $65.78 
82.56 - 83.17
1,262,467 4.1482.56 623,227 82.57 
87.60 - 90.21
1,299,366 4.1887.64 1,064,406 87.65 
92.40 - 98.32
1,284,112 6.1598.28 10,212 92.98 
100.74 - 105.56
1,326,599 5.14100.85 44,919 $104.10 
$29.59 - $105.56
7,197,662 4.31$85.11 3,659,755 $75.55 
An analysis of option activity for each of the three years ended December 31, 2021, is as follows:
202120202019
OptionsWeighted-Average
Exercise Price		OptionsWeighted-Average
Exercise Price		OptionsWeighted-Average
Exercise Price
Outstanding—beginning of year
7,111,231 $78.28 6,724,358 $70.07 7,203,765 $61.72 
Granted:
7-year term
1,284,112 98.28 1,326,599 100.85 1,352,402 82.43 
Exercised(1,191,704)58.59 (936,289)51.37 (1,810,559)45.93 
Expired and forfeited(5,977)74.15 (3,437)75.27 (21,250)82.89 
Outstanding—end of year
7,197,662 $85.11 7,111,231 $78.28 6,724,358 $70.07 
Exercisable at end of year
3,659,755 $75.55 3,389,399 $67.19 2,999,788 $57.27 

Additional information about Globe Life's stock option activity as of December 31, 2021 and 2020 is as follows:
20212020
Outstanding options:
Weighted-average remaining contractual term (in years)4.314.57
Aggregate intrinsic value$77,329 $126,467 
Exercisable options:
Weighted-average remaining contractual term (in years)3.273.42
Aggregate intrinsic value$66,978 $94,527 

Selected stock option activity for the three years ended December 31, 2021, is presented below:
202120202019
Weighted-average grant-date fair value of options granted
(per share)		$18.01 $14.64 $14.20 
Intrinsic value of options exercised50,641 40,517 82,022 
Cash received from options exercised69,826 48,093 83,163 
Actual tax benefit received10,545 8,508 17,225 

Additional information concerning Globe Life's unvested options is as follows at December 31:
20212020
Number of shares outstanding3,537,907 3,721,832 
Weighted-average exercise price (per share)$94.99 $88.37 
Weighted-average remaining contractual term (in years)5.375.62
Aggregate intrinsic value$10,352 $31,941 

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 directors and vests over six months. Restricted stock units are also available to directors. The restricted stock units 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 business day of the year. Performance shares are granted to a limited number of senior executives. Performance shares have a three-year performance period and are not settled in shares until the certification of the three-year performance 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 three-year performance period. 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, 2021. All restricted stock units were fully vested at the end of each year of grant.
Year of grantsOutstanding as of year end
201971,006 
202077,167 
202184,426 

Below is the final determination of the performance share grants in 2017 to 2019:
Year of grantsFinal settlement of sharesFinal settlement date
2017271,843 February 26, 2020
2018210,155 February 24, 2021
201966,751 February 23, 2022

For the 2020 and 2021 performance share grants, actual shares that could be distributed range from 0 to 227 thousand for the 2020 grants and 0 to 209 thousand shares for the 2021 grants.

A summary of restricted stock grants for each of the years in the three-year period ended December 31, 2021, is presented in the table below.
202120202019
Directors restricted stock:
Shares10,031 4,548 8,840 
Price per share$92.40 $105.56 $76.37 
Aggregate value$927 $480 $675 
Percent vested as of 12/31/202197 %100 %100 %
Directors restricted stock units (including dividend equivalents):
Shares7,258 6,161 6,634 
Price per share$92.60 $103.32 $77.50 
Aggregate value$672 $637 $514 
Percent vested as of 12/31/202196 %100 %100 %
Performance shares:
Target shares139,500 151,200 156,500 
Target price per share$98.32 $100.74 $82.56 
Aggregate value$13,716 $15,232 $12,921 
Percent vested as of 12/31/2021— %— %— %

Time-vested restricted stockholders 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
2019:
Balance at December 31, 201812,000 752,629 — — 764,629 
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 
2021:
Grants— 139,500 10,031 7,258 156,789 
Additional performance shares(1)
— (94,883)— — (94,883)
Restriction lapses— (210,155)(9,742)(6,969)(226,866)
Forfeitures— (11,050)— — (11,050)
Balance at December 31, 2021— 342,388 289 289 342,966 
(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 2021:
Executive Restricted StockExecutive Performance SharesDirectors Restricted StockDirectors Restricted Stock Units
Grant-date fair value per share at January 1, 2021
$— $90.13 $— $— 
Grants— 98.32 92.40 92.41 
Estimated additional performance shares— (91.43)— — 
Restriction lapses— (87.60)(92.40)(92.41)
Forfeitures— (87.60)— — 
Grant-date fair value per share at December 31, 2021
— 94.75 92.56 92.56