Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2012

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,	Defined Contribution Plans		Defined Benefit Pension Plans
2012	$	3,668	$	26,007
2011		3,552		20,952
2010		3,617		18,948

Pension Assets By Component At Fair Value

Pension Assets by Component at December 31, 2012

	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
Equity securities:
Financial	$	26,174					$	26,174		9	%
Consumer, Non-Cyclical		15,894						15,894		6
Technology		13,332						13,332		5
Industrial		10,353						10,353		4
General merchandise stores		11,197						11,197		4
Other		12,883						12,883		4
Total equity securities		89,833						89,833		32
Corporate bonds		4,292	$	165,525				169,817		61
Other bonds				327				327		0
Guaranteed annuity contract*				13,277				13,277		5
Short-term investments		2,218						2,218		1
Other		2,169						2,169		1
Grand Total	$	98,512	$	179,129	$	0	$	277,641		100	%

* Annuity contract issued by a Torchmark subsidiary

Pension Assets by Component at December 31, 2011

	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
Equity securities:
Financial	$	24,255					$	24,255		9	%
Consumer, Non-Cyclical		14,866						14,866		6
Technology		13,184						13,184		5
Industrial		11,491						11,491		5
General merchandise stores		8,119						8,119		3
Other		7,544						7,544		3
Total equity securities		79,459						79,459		31
Corporate bonds		6,661	$	153,098				159,759		62
Other bonds				348				348		0
Guaranteed annuity contract*				12,745				12,745		5
Short-term investments		3,767						3,767		1
Other		1,989						1,989		1
Grand Total	$	91,876	$	166,191	$	0	$	258,067		100	%

* Annuity contract issued by a Torchmark subsidiary

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:

	2012			2011			2010
Balance at January 1	$	(119,863	)	$	(105,903	)	$	(93,674	)
Amortization of:
Prior service cost		2,146			2,080			2,098
Net actuarial (gain) loss		12,653			10,071			8,766
Transition obligation		0			(5	)		(7	)
Total amortization		14,799			12,146			10,857
Plan amendments		(3,452	)		0			0
Experience gain(loss)		(59,613	)		(26,106	)		(23,086	)
Balance at December 31	$	(168,129	)	$	(119,863	)	$	(105,903	)

Portion Of Other Comprehensive Income Expected To Be Reflected In Pension Expense Next Year

The portion of other comprehensive income that is expected to be reflected in pension expense in 2013 is as follows:

Amortization of prior service cost	$	2,276
Amortization of net loss (gain)		15,888
Amortization of transition obligation		0
Total	$	18,164

Estimated Expected Pension Benefits To Be Paid Over The Next Ten Years

Torchmark has estimated its expected pension benefits to be paid over the next ten years as of December 31, 2012. These estimates use the same assumptions that measure the benefit obligation at December 31, 2012, taking estimated future employee service into account. Those estimated benefits are as follows:

For the year(s)
2013	$	14,194
2014		15,394
2015		17,118
2016		18,436
2017		19,910
2018-2021		120,779

Pension Benefits

Weighted Average Assumptions

Weighted Average Pension Plan Assumptions

For Benefit Obligations at December 31:
	2012			2011
Discount Rate		4.18	%		5.09	%
Rate of Compensation Increase		4.40			4.04
For Periodic Benefit Cost for the Year:	2012			2011			2010
Discount Rate		5.09	%		5.77	%		6.31	%
Expected Long-Term Returns		7.20			7.24			7.24
Rate of Compensation Increase		4.04			4.00			3.79

Components of Net Periodic Cost

Net periodic pension cost for the defined benefit plans by expense component was as follows:

	Year Ended December 31,
	2012			2011			2010
Service cost—benefits earned during the period	$	11,215		$	9,277		$	8,174
Interest cost on projected benefit obligation		16,796			16,106			15,392
Expected return on assets		(17,114	)		(16,068	)		(15,025	)
Net amortization		15,110			11,637			10,407
Net periodic pension cost	$	26,007		$	20,952		$	18,948

Reconciliation Of Benefit Obligation And Plan Assets

The following table presents a reconciliation from the beginning to the end of the year of the projected benefit obligation and plan assets for pensions. This table also presents the amounts previously recognized as a component of accumulated other comprehensive income.

	Pension Benefits For the year ended December 31,
	2012			2011
Changes in benefit obligation:
Obligation at beginning of year	$	331,609		$	285,560
Service cost		11,215			9,277
Interest cost		16,796			16,106
Actuarial loss (gain)		67,949			34,515
Plan amendments		3,452			0
Benefits paid		(16,100	)		(13,849	)
Obligation at end of year		414,921			331,609
Changes in plan assets:
Fair value at beginning of year		258,067			236,893
Return on assets		27,493			26,439
Contributions		8,181			8,584
Benefits paid		(16,100	)		(13,849	)
Fair value at end of year		277,641			258,067
Funded status at year end	$	(137,280	)	$	(73,542	)

Schedule Of Amounts Recognized As Components Accumulated Other Comprehensive Income

Amounts recognized in accumulated other comprehensive income consist of:
Net loss (gain)	$	156,567	$	111,964
Prior service cost		7,752		6,446
Transition obligation		0		0
Net amounts recognized at year end	$	164,319	$	118,410

Other Benefits

Weighted Average Assumptions

Weighted Average Assumptions for Post-Retirement

Benefit Plans Other Than Pensions

For Benefit Obligations at December 31:
	2012			2011
Discount Rate		4.18	%		5.09	%
Rate of Compensation Increase		3.50			3.50
For Periodic Benefit Cost for the Year:
	2012			2011			2010
Discount Rate		5.09	%		5.77	%		6.60	%
Rate of Compensation Increase		3.50			4.50			4.50

Components of Net Periodic Cost

The components of net periodic postretirement benefit cost for plans other than pensions are as follows:

	Year Ended December 31,
	2012		2011			2010
Service cost	$	392	$	919		$	728
Interest cost on benefit obligation		1,020		999			970
Expected return on plan assets		0		0			0
Amortization of prior service cost		0		0			0
Recognition of net actuarial (gain) loss		0		(815	)		(583	)
Net periodic postretirement benefit cost	$	1,412	$	1,103		$	1,115

Reconciliation Of Benefit Obligation And Plan Assets

The following table presents a reconciliation of the benefit obligation and plan assets from the beginning to the end of the year. As these plans are unfunded, funded status is equivalent to the accrued benefit liability.

	Benefits Other Than Pensions For  the year ended December 31,
	2012			2011
Changes in benefit obligation:
Obligation at beginning of year	$	19,008		$	16,889
Service cost		392			919
Interest cost		1,020			999
Actuarial loss (gain)		2,358			638
Benefits paid		(411	)		(437	)
Obligation at end of year		22,367			19,008
Changes in plan assets:
Fair value at beginning of year		0			0
Return on assets		0			0
Contributions		411			437
Benefits paid		(411	)		(437	)
Fair value at end of year		0			0
Funded status at year end	$	(22,367	)	$	(19,008	)

Schedule Of Amounts Recognized As Components Accumulated Other Comprehensive Income

Amounts recognized in accumulated other comprehensive income:
Net loss*	$	3,812	$	1,453
Net amounts recognized at year end	$	3,812	$	1,453

* The net loss for benefit plans other than pensions reduces other comprehensive income.