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Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2012
Analysis Of Shares Available For Grant

An analysis of shares available for grant is as follows:

 

     Available for Grant  
     2012     2011     2010  

Balance at January 1

      6,099,342        255,263        1,724,540   

Approval of Torchmark Corporation 2011 Incentive Plan*

      0        7,950,000        0   

Cancellation of available shares from prior plans

      0        (229,333 )      0   

Expired and forfeited during year

      5,850        0        26,269   

Options granted during year

      (1,072,725 )      (1,338,013 )      (1,358,175 ) 

Restricted stock, restricted stock units, and performance shares granted under the Torchmark Corporation 2011 Incentive Plan (counted as 3.1 options per grant)*

      (496,166 )      (519,558 )      0   

Restricted stock and restricted stock units granted during the year under previous plans

      0        (19,017 )      (137,371 ) 
  

 

 

    

 

 

    

 

 

  

Balance at December 31

      4,536,301        6,099,342        255,263   
  

 

 

    

 

 

    

 

 

  

 

       

*   Plan allows for grant of restricted stock such that each stock grant reduces 3.1 options available for grant

      

  
Summary Of Stock Compensation Activity

A summary of stock compensation activity for each of the years in the three years ended December 31, 2012 is presented below:

 

       2012          2011          2010    

Stock-based compensation expense recognized*

    $ 21,605       $ 14,954       $ 11,848   

Tax benefit recognized

      7,562         5,234         4,147   

Weighted-average grant-date fair value of options granted

      15.70         15.48         10.35   

Intrinsic value of options exercised

      80,781         40,991         12,102   

Cash received from options exercised

      181,022         162,613         37,863   

Actual tax benefit received from exercises

      28,086         14,347         4,236   

 

         

*   No stock-based compensation expense was capitalized in any period.

     

   
Analysis Of Option Activity

An analysis of option activity for each of the three years ended December 31, 2012 is as follows:

 

    2012     2011     2010  
    Options     Weighted Average
Exercise Price		     Options     Weighted Average
Exercise Price		     Options     Weighted Average
Exercise Price		  

Outstanding-beginning of year

     11,620,393      $ 35.42        15,185,729      $ 34.09        15,509,978      $ 34.04   

Granted

     1,072,725        45.97        1,338,013        44.37        1,358,175        30.86   

Exercised

     (5,354,381 )      33.82        (4,829,892 )      33.67        (1,273,598 )      29.73   

Expired and forfeited

     (6,600 )      44.63        (73,425 )      39.17        (408,826 )      35.05   

Adjustment due to 7/1/11 stock split

     0        0.00        (32 )      32.96        0        0.00   
 

 

 

      

 

 

      

 

 

    

Outstanding-end of year

     7,332,137      $ 38.14        11,620,393      $ 35.42        15,185,729      $ 34.09   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Exercisable at end of year

     4,261,817      $ 35.37        8,265,818      $ 36.28        11,830,076      $ 36.10   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Summary Of Restricted Stock And Restricted Stock Units Granted

A summary of restricted stock and restricted stock units granted during each of the years in the three year period ended December 31, 2012 is presented in the table below. Restricted stock holders are entitled to dividends on the stock and holders of restricted stock units are entitled to dividend equivalents. Executive grants vest over five years and director grants vest over six months.

 

     2012     2011     2010  

Executives restricted stock:

       

Shares

      60,000        167,250        112,500   

Price per share

    $ 46.12      $ 44.39      $ 30.87   

Aggregate value

    $ 2,767      $ 7,424      $ 3,473   

Percent vested as of 12/31/12

      0 %      20 %      40 % 

Directors restricted stock:

       

Shares

      9,720        6,303        9,423   

Price per share

    $ 43.74      $ 40.45      $ 30.85   

Aggregate value

    $ 425      $ 255      $ 291   

Percent vested as of 12/31/12

      100 %      100 %      100 % 

Directors restricted stock units (including dividend equivalents):

       

Shares

      9,719        13,063        15,443 * 

Price per share

    $ 43.74      $ 40.49      $ 29.95   

Aggregate value

    $ 425      $ 529      $ 463   

Percent vested as of 12/31/12

      100 %      100 %      100 % 

 

       

*   2,013 shares at $29.84 per share were later forfeited in 2010.

     

  
Analysis Of Unvested Restricted Stock

An analysis of unvested restricted stock is as follows:

 

     Executives
Restricted Stock		     Executive
Performance
Shares		      Directors
Restricted Stock		     Total  

2010:

          

Balance at January 1, 2010

      203,250        0         0        203,250   

Grants

      112,500        0         9,423        121,923   

Restriction lapses

      (71,100 )      0         (9,423 )      (80,523 ) 

Forfeitures

      (7,500 )      0         0        (7,500 ) 
  

 

 

    

 

 

     

 

 

    

 

 

  

Balance at December 31, 2010

      237,150        0         0        237,150   

2011:

          

Grants

      167,250        0         6,303        173,553   

Restriction lapses

      (72,600 )      0         (6,303 )      (78,903 ) 

Forfeitures

      (4,800 )      0         0        (4,800 ) 
  

 

 

    

 

 

     

 

 

    

 

 

  

Balance at December 31, 2011

      327,000        0         0        327,000   

2012:

          

Grants

      60,000        80,000         9,720        149,720   

Restriction lapses

      (75,300 )      0         (9,720 )      (85,020 ) 

Forfeitures

      0        0         0        0   
  

 

 

    

 

 

     

 

 

    

 

 

  

Balance at December 31, 2012

      311,700        80,000         0        391,700   
  

 

 

    

 

 

     

 

 

    

 

 

  
Schedule Of Additional Information Of Stock-Based Compensation

Additional information about Torchmark’s stock-based compensation as of December 31, 2012 and 2011 is as follows:

 

     2012      2011  

Outstanding options:

      

Weighted-average remaining contractual term (in years)

      3.72         2.95   

Aggregate intrinsic value

    $ 99,212       $ 94,270   

Exercisable options:

      

Weighted-average remaining contractual term (in years)

      2.29         1.89   

Aggregate intrinsic value

    $ 69,472       $ 59,097   

Unrecognized compensation*

    $ 32,808       $ 30,299   

Weighted average period of expected recognition (in years)*

      0.74         1.68   

 

  *   Includes restricted stock
Schedule Of Additional Information On Unvested Options

Additional information concerning Torchmark’s unvested options is as follows at December 31:

 

     2012      2011  

Number of shares outstanding

      3,070,320         3,354,575   

Weighted-average exercise price (per share)

    $ 41.98       $ 33.30   

Weighted-average remaining contractual term (in years)

      5.70         5.55   

Aggregate intrinsic value

    $ 29,740       $ 35,173   
Summary Of Options Outstanding

The following table summarizes information about stock options outstanding at December 31, 2012.

 

    Options Outstanding      Options Exercisable  

Range of

Exercise Prices

   Number
Outstanding		      Weighted-
Average
Remaining
Contractual
Life (Years)		      Weighted-
Average
Exercise
Price		      Number
Exercisable		      Weighted-
Average
Exercise
Price		  

$15.67 - $30.40

     826,159         2.66       $         19.76         818,013       $         19.66   

  30.87 -   30.87

     1,238,872         4.05         30.87         581,578         30.87   

  35.33 -   40.45

     998,259         1.99         37.63         987,904         37.64   

  41.79 -   42.97

     1,387,010         1.95         41.93         1,387,010         41.93   

  43.06 -   44.39

     1,646,212         4.82         44.12         330,112         43.07   

  44.79 -   48.72

     1,235,625         6.02         45.90         157,200         45.45   
 

 

 

           

 

 

     

$15.67 - $48.72

     7,332,137         3.72       $ 38.14         4,261,817       $ 35.37