Debt

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Debt

Note 11—Debt

On May 11, 2023, Globe Life issued a $170 million term loan with an 18-month term and a variable interest rate. The proceeds from the term loan were used to retire the $166 million 7.875% Senior Notes, which matured on May 15, 2023, as well as for other corporate purposes.

The following table presents information about the terms and outstanding balances of Globe Life's debt.

Selected Information about Debt Issues

				As of
				June 30, 2023								December 31, 2022
Instrument	Issue Date	Maturity Date	Coupon Rate	Par Value		Unamortized Discount & Issuance Costs		Book Value		Fair Value		Book Value
Senior notes	5/27/1993	5/15/2023	7.875%	$	—	$	—	$	—	$	—	$	165,500
Senior notes	9/27/2018	9/15/2028	4.550%	550,000		(4,058)		545,942		531,146		545,601
Senior notes	8/21/2020	8/15/2030	2.150%	400,000		(3,555)		396,445		315,536		396,219
Senior notes(1)	5/19/2022	6/15/2032	4.800%	250,000		(4,317)		245,683		239,521		245,493
Junior subordinated debentures	11/17/2017	11/17/2057	5.275%	125,000		(1,582)		123,418		122,104		123,410
Junior subordinated debentures	6/14/2021	6/15/2061	4.250%	325,000		(7,732)		317,268		255,580		317,229
Term loan(2)	5/11/2023	11/11/2024	6.200%	170,000		(639)		169,361		169,361		—
				1,820,000		(21,883)		1,798,117		1,633,248		1,793,452
Less current maturity of long-term debt				—		—		—		—		165,500
Total long-term debt				1,820,000		(21,883)		1,798,117		1,633,248		1,627,952
Current maturity of long-term debt				—		—		—		—		165,500
Commercial paper				260,000		(1,768)		258,232		258,232		283,603
Total short-term debt				260,000		(1,768)		258,232		258,232		449,103
Total debt				$	2,080,000	$	(23,651)	$	2,056,349	$	1,891,480	$	2,077,055

(1)An additional $150 million par value and book value is held by insurance subsidiaries that eliminates in consolidation.

(2)Interest calculated quarterly using Secured Overnight Financing Rate (SOFR) plus 135 basis points.

The commercial paper has the highest priority of all unsecured debt, followed by senior notes then junior subordinated debentures. The senior notes are callable under a make-whole provision, and the junior subordinated debentures are subject to an optional redemption five years from issuance. Interest on the 4.25% junior subordinated debentures is payable quarterly while all other long-term debt is payable semi-annually.

Federal Home Loan Bank (FHLB): FHLB membership provides our insurance subsidiaries with access to various low-cost collateralized borrowings and funding agreements. The membership requires ownership of FHLB common stock, as well as the purchase of activity-based common stock equal to approximately 4.1% of outstanding borrowings. Globe Life owns $16.5 million in FHLB common stock as of June 30, 2023 and $14.3 million as of December 31, 2022. The FHLB stock is restricted for the duration of the membership and recorded at cost (par) as required by applicable guidance. The FHLB stock is included in "Other long-term investments" in the Consolidated Balance Sheets. Borrowings with the FHLB are subject to the availability of pledged assets at Globe Life. As of June 30, 2023, Globe Life's maximum borrowing capacity under the FHLB facility was approximately $655 million, based on pledged assets with a fair value of $902 million. As of June 30, 2023, $88 million in funding agreements were outstanding with the FHLB, compared to $23 million as of December 31, 2022. This amount is included in "Other policyholders' funds" on the Consolidated Balance Sheets. The Company had no short-term borrowings from the FHLB as of June 30, 2023, and December 31, 2022.