NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Dollar amounts in thousands except per share data) Note 14—Business Segments Torchmark’s reportable segments are based on the insurance product lines it markets and administers: life insurance, health insurance, and annuities.
These major product lines are set out as reportable segments because of the common characteristics of products within these categories, comparability of margins, and the similarity in regulatory environment and management techniques.
There is also an investment segment which manages the investment portfolio, debt, and cash flow for the insurance segments and the corporate function.
Torchmark’s chief operating decision maker evaluates the overall performance of the operations of the Company in accordance with these segments.
Life insurance products include traditional and interest-sensitive whole life insurance as well as term life insurance.
Health products are generally guaranteed-renewable and include Medicare Supplement, Medicare Part D, cancer, accident, long-term care, and limited-benefit hospital and surgical coverages.
Annuities include fixed-benefit contracts.
Torchmark markets its insurance products through a number of distribution channels, each of which sells the products of one or more of Torchmark’s insurance segments.
The tables below present segment premium revenue by each of Torchmark’s marketing groups.
Torchmark Corporation Premium Income By Distribution Channel
## Table 0 ##
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Dollar amounts in thousands except per share data) Note 1—Significant Accounting Policies (continued) goodwill assigned to the unit.
In 2012, the qualitative assessment was employed as permitted by accounting guidance.
Based on the analyses as outlined in the guidance, it was determined that an impairment of goodwill was not likely.
In both 2014 and 2013, the fair values of the various reporting units were developed.
The fair value of each reporting unit was determined using discounted expected cash flows associated with that unit.
Judgment and assumptions are used in developing the projected cash flows for the reporting units, and such estimates are subject to change.
The Company also exercises judgment in the determination of the discount rate, which management believes to be appropriate for the risk associated with the cash flow expectations.
The fair value of each reporting unit is then measured against that reporting unit’s corresponding carrying value.
Because the estimated fair value substantially exceeded the carrying value, including goodwill, of each reporting unit in each period, Torchmark’s goodwill was not impaired in any of those periods.
Treasury Stock: Torchmark accounts for purchases of treasury stock on the cost method.
Issuance of treasury stock is accounted for using the weighted-average cost method.
Postretirement Benefits: Torchmark accounts for its postretirement defined benefit plans by recognizing the funded status of those plans on its Consolidated Balance Sheets in accordance with accounting guidance.
Periodic gains and losses attributable to changes in plan assets and liabilities that are not recognized as components of net periodic benefit costs are recognized as components of other comprehensive income, net of tax.
More information concerning the accounting and disclosures for postretirement benefits is found in Note 9—Postretirement Benefits.
Stock Compensation: Torchmark accounts for stock-based compensation by recognizing an expense in the financial statements based on the “fair value method.
” The fair value method requires that a fair value be assigned to a stock option or other stock grant on its grant date and that this value be amortized over the grantees’ service period.
The fair value method requires the use of an option valuation model to value employee stock options.
Torchmark has elected to use the Black-Scholes valuation model for option expensing.
A summary of assumptions for options granted in each of the three years 2012 through 2014 is as follows:
## Table 1 ##
The expected term is generally derived from Company experience.
However, expected terms are determined based on the simplified method as permitted by Staff Accounting Bulletins 107 and 110 when company experience is insufficient.
The Torchmark Corporation 2011 Incentive Plan replaced all previous plans and allows for option grants with a ten-year contractual term which vest over five years in addition to seven-year grants which vest over three years as permitted by the previous plans.
The Company has sufficient experience with seven-year grants that vest in three years, but insufficient historical experience with five-year vesting.
Therefore, Torchmark has used the simplified method to determine the expected term for the ten-year grants with five-year vesting and will do so until adequate experience is developed.
Volatility and risk-free interest rates are assumed over a period of time consistent with the expected term of the option.
Volatility is measured on a historical basis.
Monthly data points are utilized to derive volatility for periods greater than three years.
Expected dividend yield is based on current dividend yield held constant over the expected term.
Once the fair value of an option has been determined, it is amortized on a straight-line basis over the employee’s service period for that grant (from the grant date to the date the grant is fully vested).
Expenses for restricted stock and restricted stock units are based on the grant-date fair value allocated on a straight-line basis over the service period.
Performance share expense is recognized based on management’s estimate of the probability of meeting the metrics identified in the performance share award agreement, assigned to each service period as these estimates develop.
Shareowner Return Performance Graph The following performance graph and related information shall not be deemed “soliciting material” or to be “filed” with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that the Company specifically incorporates such information by reference into such filing.
The following graph shows a five year comparison of cumulative total shareowners’ returns for our class B common stock, the Standard & Poor’s 500 Index, and the Dow Jones Transportation Average.
The comparison of the total cumulative return on investment, which is the change in the quarterly stock price plus reinvested dividends for each of the quarterly periods, assumes that $100 was invested on December 31, 2005 in the Standard & Poor’s 500 Index, the Dow Jones Transportation Average, and our class B common stock.
Comparison of Five Year Cumulative Total Return
## Table 2 ##

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="8"> For the Year 2012</td></tr><tr><td></td><td colspan="2"> Life</td><td colspan="2"> Health</td><td colspan="2"> Annuity</td><td colspan="2"> Total</td></tr><tr><td> Distribution Channel</td><td> Amount</td><td> % of Total</td><td> Amount</td><td> % of Total</td><td> Amount</td><td> % of Total</td><td> Amount</td><td> % of Total</td></tr><tr><td>United American Independent</td><td>$21,127</td><td>1</td><td>$298,759</td><td>28</td><td>$559</td><td>100</td><td>$320,445</td><td>11</td></tr><tr><td>Liberty National Exclusive</td><td>281,723</td><td>15</td><td>263,535</td><td>25</td><td></td><td></td><td>545,258</td><td>19</td></tr><tr><td>American Income Exclusive</td><td>663,696</td><td>37</td><td>79,640</td><td>8</td><td></td><td></td><td>743,336</td><td>26</td></tr><tr><td>Family Heritage</td><td>130</td><td>0</td><td>30,119</td><td>3</td><td></td><td></td><td>30,249</td><td>1</td></tr><tr><td>Direct Response</td><td>630,111</td><td>35</td><td>57,966</td><td>6</td><td></td><td></td><td>688,077</td><td>24</td></tr><tr><td>Medicare Part D</td><td></td><td></td><td>317,764</td><td>30</td><td></td><td></td><td>317,764</td><td>11</td></tr><tr><td>Other</td><td>211,737</td><td>12</td><td></td><td></td><td></td><td></td><td>211,737</td><td>8</td></tr><tr><td></td><td>$1,808,524</td><td>100</td><td>$1,047,783</td><td>100</td><td>$559</td><td>100</td><td>$2,856,866</td><td>100</td></tr><tr><td></td><td colspan="8"> For the Year 2011</td></tr><tr><td></td><td colspan="2"> Life</td><td colspan="2"> Health</td><td colspan="2"> Annuity</td><td colspan="2"> Total</td></tr><tr><td> Distribution Channel</td><td> Amount</td><td> % of Total</td><td> Amount</td><td> % of Total</td><td> Amount</td><td> % of Total</td><td> Amount</td><td> % of Total</td></tr><tr><td>United American Independent</td><td>$22,846</td><td>1</td><td>$306,490</td><td>33</td><td>$608</td><td>100</td><td>$329,944</td><td>12</td></tr><tr><td>Liberty National Exclusive</td><td>288,308</td><td>17</td><td>290,107</td><td>31</td><td></td><td></td><td>578,415</td><td>22</td></tr><tr><td>American Income Exclusive</td><td>607,914</td><td>35</td><td>80,119</td><td>9</td><td></td><td></td><td>688,033</td><td>26</td></tr><tr><td>Direct Response</td><td>593,650</td><td>35</td><td>57,067</td><td>6</td><td></td><td></td><td>650,717</td><td>25</td></tr><tr><td>Medicare Part D</td><td></td><td></td><td>196,710</td><td>21</td><td></td><td></td><td>196,710</td><td>7</td></tr><tr><td>Other</td><td>213,526</td><td>12</td><td></td><td></td><td></td><td></td><td>213,526</td><td>8</td></tr><tr><td></td><td>$1,726,244</td><td>100</td><td>$930,493</td><td>100</td><td>$608</td><td>100</td><td>$2,657,345</td><td>100</td></tr><tr><td></td><td colspan="8"> For the Year 2010</td></tr><tr><td></td><td colspan="2"> Life</td><td colspan="2"> Health</td><td colspan="2"> Annuity</td><td colspan="2"> Total</td></tr><tr><td> Distribution Channel</td><td> Amount</td><td> % of Total</td><td> Amount</td><td> % of Total</td><td> Amount</td><td> % of Total</td><td> Amount</td><td> % of Total</td></tr><tr><td>United American Independent</td><td>$25,534</td><td>1</td><td>$314,524</td><td>32</td><td>$638</td><td>100</td><td>$340,696</td><td>13</td></tr><tr><td>Liberty National Exclusive</td><td>294,587</td><td>18</td><td>331,056</td><td>34</td><td></td><td></td><td>625,643</td><td>24</td></tr><tr><td>American Income Exclusive</td><td>560,649</td><td>34</td><td>79,059</td><td>8</td><td></td><td></td><td>639,708</td><td>24</td></tr><tr><td>Direct Response</td><td>566,604</td><td>34</td><td>54,328</td><td>5</td><td></td><td></td><td>620,932</td><td>23</td></tr><tr><td>Medicare Part D</td><td></td><td></td><td>208,970</td><td>21</td><td></td><td></td><td>208,970</td><td>8</td></tr><tr><td>Other</td><td>216,325</td><td>13</td><td></td><td></td><td></td><td></td><td>216,325</td><td>8</td></tr><tr><td></td><td>$1,663,699</td><td>100</td><td>$987,937</td><td>100</td><td>$638</td><td>100</td><td>$2,652,274</td><td>100</td></tr></table>
<table><tr><td></td><td>2014</td><td>2013</td><td> 2012</td></tr><tr><td>Volatility factor</td><td>30.9%</td><td>38.5%</td><td>39.4%</td></tr><tr><td>Dividend yield</td><td>.89%</td><td>1.1%</td><td>1.0%</td></tr><tr><td>Expected term (in years)</td><td>5.65</td><td>5.62</td><td>5.55</td></tr><tr><td>Risk-free rate</td><td>1.9%</td><td>1.1%</td><td>1.3%</td></tr></table>
<table><tr><td></td><td>12/31/05</td><td>12/31/06</td><td>12/31/07</td><td>12/31/08</td><td>12/31/09</td><td>12/31/10</td></tr><tr><td>United Parcel Service, Inc.</td><td>$100.00</td><td>$101.76</td><td>$98.20</td><td>$78.76</td><td>$84.87</td><td>$110.57</td></tr><tr><td>Standard & Poor’s 500 Index</td><td>$100.00</td><td>$115.79</td><td>$122.16</td><td>$76.96</td><td>$97.33</td><td>$111.99</td></tr><tr><td>Dow Jones Transportation Average</td><td>$100.00</td><td>$109.82</td><td>$111.38</td><td>$87.52</td><td>$103.79</td><td>$131.59</td></tr></table>

Question: Which year is American Income Exclusive for Health the highest?
Answer: 2011