-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, R+F45M+qgsG5DLYYjVesTXfe/wJHAy9qUM0Hg2Ou03mBk/N4JbRg6Wv6KjYmQjhP kcpM+sbn5GNAdUg7bckcYw== 0000931763-98-003032.txt : 19981123 0000931763-98-003032.hdr.sgml : 19981123 ACCESSION NUMBER: 0000931763-98-003032 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981120 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19981120 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TORCHMARK CORP CENTRAL INDEX KEY: 0000320335 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 630780404 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 001-08052 FILM NUMBER: 98755854 BUSINESS ADDRESS: STREET 1: 2001 3RD AVE S CITY: BIRMINGHAM STATE: AL ZIP: 35233 BUSINESS PHONE: 2053254200 FORMER COMPANY: FORMER CONFORMED NAME: TORCHMARK CORP SAVINGS & INVESTMENT PLAN DATE OF NAME CHANGE: 19820825 FORMER COMPANY: FORMER CONFORMED NAME: LIBERTY NATIONAL INSURANCE HOLDING CO DATE OF NAME CHANGE: 19820701 8-K/A 1 AMENDMENT TO THE FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K/A AMENDMENT NO. 1 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) November 20, 1998 (November 6, 1998) TORCHMARK CORPORATION (Exact name of registrant as specified in its charter) Delaware 1-8052 63-0780404 (State or other (Commission File No.) (I.R.S. Employer jurisdiction of Identification No.) incorporation) 2001 Third Avenue South, Birmingham, Alabama 35233 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (205) 325-4200 None (Former name or former address, if changed since last report) Index of Exhibits page 2. Total number of pages in this report is 3. Item 2. Acquisition or Disposition of Assets. On November 6, 1998, Torchmark Corporation ("TMK") disposed of the remaining 64% interest it held in Waddell & Reed Financial, Inc. ("WDR") on a tax-free basis in the form of a special dividend to TMK common shareholders of record as of the close of business on October 23, 1998. TMK distributed a total of 7,975,000 Class A common shares of WDR and 34,325,000 Class B common shares of WDR to its common stockholders based upon the ratios of .0569 share of WDR Class A stock for each share of TMK stock held and .2449 share of WDR Class B stock for each share of TMK stock held. All fractional shares of WDR arising from the Spin-off distribution were settled in cash. TMK no longer holds any ownership interest in its former subsidiary, WDR. Item 7. Financial Statements and Exhibits. (a) Financial statements of businesses acquired. Not applicable. (b) Pro forma financial information. Pro Forma Consolidated Condensed Financial Statements (Unaudited). (c) Exhibits. None. TORCHMARK CORPORATION PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) The following unaudited pro forma condensed consolidated balance sheet as of September 30, 1998 and the pro forma condensed consolidated income statements for the year ended December 31, 1997 and for the nine months ended September 30, 1998 give effect to Torchmark's divestiture of Waddell & Reed. This transaction was completed in two steps. First, approximately 36% of the Waddell & Reed shares owned by Torchmark were sold in an initial public offering. Later, the remaining shares were spun off to Torchmark shareholders. Waddell & Reed was accounted for as discontinued operations in the historical financial statements effective September 30, 1998. All prior periods have been restated to reflect discontinued operations accounting. These pro forma financial statements have been prepared based on estimates and assumptions deemed appropriate to reflect these transactions as if they occurred at times other than their actual occurrence. These statements give effect to the spin-off of Waddell & Reed as if it occurred on September 30, 1998. There are no pro forma adjustments to the income statements because Waddell & Reed is accounted for as a discontinued segment in the historical financial statements. The pro forma financial statements should be read in conjunction with the historical financial statements of Torchmark contained in Torchmark's Form 10-K for the year ended December 31, 1997 and Form 10-Q for the nine months ended September 30, 1998. These pro forma financial statements do not purport to be indicative of the results which might have actually been obtained had the transactions been completed at the beginning of the periods presented or which may be obtained in the future. TORCHMARK CORPORATION PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET At September 30, 1998 (Unaudited) (Amounts in thousands except for per share data) ------------------------------------------------------------ Historical Pro Forma Pro Forma Adjustments ------------------------------------------------------- Fixed maturities............. $ 5,859,953 $ 5,859,953 Other investments............ 645,391 645,391 Deferred acquisition costs... 1,633,119 1,633,119 Other assets................. 1,027,263 ($277,828) (a) 749,435 Separate account assets...... 2,111,414 2,111,414 ----------- ---------- ---------- Total assets............... $11,277,140 ($277,828) $10,999,312 =========== ========== =========== Policy liabilities........... $ 4,890,300 $ 4,890,300 Other liabilities............ 1,452,345 1,452,345 Separate account liabilities. 2,111,414 2,111,414 ----------- ---------- ----------- Total liabilities.......... 8,454,059 0 8,454,059 Minority interests in consolidated affiliate..... 100,935 ($100,935) (a) 0 Monthly income preferred securities ................ 193,244 193,244 Shareholders' equity......... 2,528,902 (176,893) (a) 2,352,009 ----------- ---------- ---------- Total liabilities and shareholders' equity..... $11,277,140 ($277,828) $10,999,312 =========== ========== =========== TORCHMARK CORPORATION PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME For the nine months ended September 30, 1998 (Unaudited) (Amounts in thousands except for per share data) -------------------------------------------------------------- Historical Pro Forma Pro Forma Adjustments --------------------------------------- Premium........................... $1,310,345 $1,310,345 Net investment income............. 349,846 349,846 Realized investment gains (losses) (44,777) (44,777) Other income...................... 1,937 1,937 ---------- ---------- Total revenue................. 1,617,351 1,617,351 Policy benefits................... 864,067 864,067 Amortization of deferred acquisition costs............... 172,337 172,337 Commissions and premium taxes..... 107,904 107,904 Other operating expense........... 89,488 89,488 Amortization of goodwill.......... 9,055 9,055 Interest expense.................. 45,791 45,791 ---------- ---------- Total benefits and expenses... 1,288,642 1,288,642 ---------- ---------- Pretax income..................... 328,709 328,709 Income taxes...................... (117,238) (117,238) Equity in earnings of unconsolidated affiliates....... (19,851) (19,851) Monthly income preferred securities dividend (net of tax) (7,433) (7,433) ---------- ---------- Net income from continuing operations........... $184,187 $184,187 ========== ========== Net income from continuing operations per share: Basic......................... $1.31 $1.31 ========== ========== Diluted....................... $1.30 $1.30 ========== ========== TORCHMARK CORPORATION PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME For the year ended December 31, 1997 (Unaudited) (Amounts in thousands except for per share data) ------------------------------------------------------ Historical Pro Forma Pro Forma (as restated) Adjustments ------------------------------------------------------ Premium...................... $ 1,678,004 $ 1,678,004 Net investment income........ 426,677 426,677 Realized investment gains (losses)................... (36,979) (36,979) Other income................. 962 962 ----------- ----------- Total revenue.............. 2,068,664 2,068,664 =========== =========== Policy benefits.............. 1,108,900 1,108,900 Amortization of deferred acquisition costs.......... 224,738 224,738 Commissions and premium taxes...................... 141,296 141,296 Other operating expense...... 117,794 117,794 Amortization of goodwill..... 12,074 12,074 Interest expense............. 71,863 71,863 ----------- ----------- Total benefits and expenses................. 1,676,665 1,676,665 ----------- ----------- Pretax income................ 391,999 391,999 Income taxes................. (138,409) (138,409) Equity in earnings of unconsolidated affiliates.. 16,714 16,714 Monthly income preferred securities dividend (net of tax)............... (9,875) (9,875) ----------- ----------- Net income from continuing operations................. $ 260,429 $ 260,429 =========== =========== Net income from continuing operations per share: Basic..................... $ 1.87 $ 1.87 =========== =========== Diluted................... $ 1.84 $ 1.84 =========== =========== TORCHMARK CORPORATION NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note a - The pro forma condensed consolidated financial statements give effect to the spin-off of Torchmark's 64% interest in Waddell & Reed assuming the spin-off occurred on September 30, 1998. A pro forma adjustment was made to the condensed consolidated balance sheet to record the payment of the Waddell & Reed shares to Torchmark shareholders. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. TORCHMARK CORPORATION Dated: November 20, 1998 By: /s/ Michael J. Klyce ---------------------- Name: Michael J. Klyce Title: Vice President and Treasurer -----END PRIVACY-ENHANCED MESSAGE-----