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Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Analysis of Shares Available for Grant

An analysis of shares available for grant is as follows:

 

     Available for Grant  
         2013         2012     2011  

Balance at January 1

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

Approval of Torchmark Corporation 2011 Incentive Plan*

      0        0        7,950,000   

Cancellation of available shares from prior plans

      0        0        (229,333 ) 

Options expired and forfeited during year

      85,406        5,850        0   

Restricted stock expired and forfeited during year (counted as 3.1 options)*

      6,417        0        0   

Options granted during year

      (1,084,575 )      (1,072,725 )      (1,338,013 ) 

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

      (631,047 )      (496,166 )      (519,558 ) 

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

      0        0        (19,017 ) 
  

 

 

    

 

 

    

 

 

  

Balance at December 31

      2,912,502        4,536,301        6,099,342   
  

 

 

    

 

 

    

 

 

  

 

       

*   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 three years ended December 31, 2013 is presented below:

 

       2013          2012          2011    

Stock-based compensation expense recognized*

    $ 25,642       $ 21,605       $ 14,954   

Tax benefit recognized

      8,975         7,562         5,234   

Weighted-average grant-date fair value of options granted

      18.55         15.70         15.48   

Intrinsic value of options exercised

      72,793         80,781         40,991   

Cash received from options exercised

      97,815         181,022         162,613   

Actual tax benefit received from exercises

      25,478         28,086         14,347   

 

         

*   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, 2013 is as follows:

 

    2013     2012     2011  
    Options     Weighted Average
Exercise Price		     Options     Weighted Average
Exercise Price		     Options     Weighted Average
Exercise Price		  

Outstanding-beginning of year

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

Granted:

            

7-year term

     907,800        56.43        846,300        46.10        1,129,663        44.37   

10-year term

     176,775        56.10        226,425        45.49        208,350        44.40   

Exercised

     (2,611,838 )      37.45        (5,354,381 )      33.82        (4,829,892 )      33.67   

Expired and forfeited

     (85,406 )      48.49        (6,600 )      44.63        (73,425 )      39.17   

Adjustment due to 7/1/11 stock split

     0        0.00        0        0.00        (32 )      32.96   
 

 

 

    

 

 

    

 

 

      

 

 

    

Outstanding-end of year

     5,719,468      $ 41.76        7,332,137      $ 38.14        11,620,393      $ 35.42   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Exercisable at end of year

     2,930,368      $ 34.42        4,261,817      $ 35.37        8,265,818      $ 36.28   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
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, 2013 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.

 

     2013     2012     2011  

Executives restricted stock:

       

Shares

      39,130        60,000        167,250   

Price per share

    $ 60.14      $ 46.12      $ 44.39   

Aggregate value

    $ 2,353      $ 2,767      $ 7,424   

Percent vested as of 12/31/13

      0 %      20 %      30 % 

Directors restricted stock:

       

Shares

      10,030        9,720        6,303   

Price per share

    $ 53.18      $ 43.74      $ 40.45   

Aggregate value

    $ 533      $ 425      $ 255   

Percent vested as of 12/31/13

      100 %      100 %      100 % 

Directors restricted stock units (including dividend equivalents):

       

Shares

      11,332        10,331        13,063   

Price per share

    $ 53.98      $ 44.03      $ 40.49   

Aggregate value

    $ 612      $ 455      $ 529   

Percent vested as of 12/31/13

      100 %      100 %      100 % 
Analysis of Unvested Restricted Stock

An analysis of unvested restricted stock is as follows:

 

     Executives
Restricted Stock		     Executive
Performance
Shares		      Directors
Restricted
Stock		     Total  

2011:

          

Balance at January 1, 2011

      237,150        0         0        237,150   

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   

2013:

          

Grants

      39,130        98,500         10,030        147,660   

Estimated additional performance shares*

      0        63,200         0        63,200   

Restriction lapses

      (100,500 )      0         (10,030 )      (110,530 ) 

Forfeitures

      (20,700 )      0         0        (20,700 ) 
  

 

 

    

 

 

     

 

 

    

 

 

  

Balance at December 31, 2013

      229,630        241,700         0        471,330   
  

 

 

    

 

 

     

 

 

    

 

 

  

 

*Additional share grants expected due to achievement of performance criteria.
Schedule of Additional Information of Stock-Based Compensation

Additional information about Torchmark’s stock-based compensation as of December 31, 2013 and 2012 is as follows:

 

         2013          2012  

Outstanding options:

      

Weighted-average remaining contractual term (in years)

      4.11         3.72   

Aggregate intrinsic value

    $ 208,152       $ 99,212   

Exercisable options:

      

Weighted-average remaining contractual term (in years)

      2.49         2.29   

Aggregate intrinsic value

    $ 128,150       $ 69,472   

Unrecognized compensation*

    $ 37,397       $ 32,808   

Weighted average period of expected recognition (in years)*

      .96         0.74   

 

  *   Includes restricted stock
Schedule of Additional Information on Unvested Options

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

 

         2013          2012  

Number of shares outstanding

      2,789,100         3,070,320   

Weighted-average exercise price (per share)

    $ 49.47       $ 41.98   

Weighted-average remaining contractual term (in years)

      5.81         5.70   

Aggregate intrinsic value

    $ 80,002       $ 29,740   
Summary of Options Outstanding

The following table summarizes information about stock options outstanding at December 31, 2013.

 

    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

     461,983         2.11       $ 17.69         457,386       $ 17.57   

  30.87 -   30.87

     962,124         3.03         30.87         962,124         30.87   

  35.93 -   42.92

     986,616         1.12         40.35         979,202         40.37   

  43.06 -   44.39

     1,228,295         4.68         44.37         526,806         44.35   

  44.79 -   48.72

     1,004,375         5.72         45.78         4,850         45.49   

  56.10 -   64.59

     1,076,075         6.54         56.38         0         0   
 

 

 

           

 

 

     

$15.67 - $64.59

     5,719,468         4.11       $ 41.76         2,930,368       $ 34.42