A.
|
Full
title of the plan and the address of the plan, if different from that of
the issuer named below:
|
• Financial
Statements and Supplemental Schedule
The
Lincoln National Life Insurance Company Agents’
Savings
and Profit-Sharing Plan
December
31, 2008 and 2007 and for the Three Years
Ended
December 31, 2008, 2007, and 2006
with
Report of Independent Registered Public Accounting
Firm
|
Report
of Independent Registered Public Accounting Firm
|
1
|
Financial
Statements
|
|
Statements
of Net Assets Available for Benefits
|
2
|
Statements
of Changes in Net Assets Available for Benefits
|
3
|
Notes
to Financial Statements
|
4
|
Supplemental
Schedule
|
|
Schedule
H, Line 4 i – Schedule of Assets (Held at End of Year)
|
43
|
The
Lincoln National Life Insurance Company
|
||||||||
Agents’
Savings and Profit-Sharing Plan
|
||||||||
Statements
of Net Assets Available for Benefits
|
||||||||
December
31
|
||||||||
2008
|
2007
|
|||||||
Assets
|
||||||||
Investments:
|
||||||||
Mutual
funds (cost –
$62,557,165)
|
$ | 48,171,602 | $ | – | ||||
Other
collective investment trusts (cost – $26,174,352)
|
23,063,386 | – | ||||||
Common
stock – Lincoln National Corporation
|
||||||||
(cost:
2008 – $33,866,772; 2007 – $33,920,977)
|
21,964,369 | 47,511,770 | ||||||
Wilmington
Trust money market fund
|
1,003,490 | – | ||||||
Wells
Fargo Bank short-term investment account
|
– | 1,564,190 | ||||||
Pooled
separate accounts – The Lincoln National Life
|
||||||||
Insurance
Company Separate Accounts (cost: 2007 –
|
||||||||
$91,414,277)
|
– | 133,100,849 | ||||||
Investment
contracts – The Lincoln National Life
|
||||||||
Insurance
Company
|
29,623,868 | 14,604,738 | ||||||
Participant
loans
|
3,572,337 | 3,996,682 | ||||||
Total
investments
|
127,399,052 | 200,778,229 | ||||||
Accrued
interest receivable
|
118,613 | 54,904 | ||||||
Cash
|
14,689 | (4,648 | ) | |||||
Contributions
receivable from participant deferrals
|
40,306 | – | ||||||
Contributions
receivable from Sponsor company
|
1,161,189 | 2,212,179 | ||||||
Total
assets
|
128,733,849 | 203,040,664 | ||||||
Liabilities
|
||||||||
Due
to broker
|
12,670 | 214 | ||||||
Total
liabilities
|
12,670 | 214 | ||||||
Net
assets available for benefits
|
$ | 128,721,179 | $ | 203,040,450 | ||||
See
accompanying notes to the financial statements.
|
||||||||
The
Lincoln National Life Insurance Company
|
||||||||||||
Agents’
Savings and Profit-Sharing Plan
|
||||||||||||
Statements
of Changes in Net Assets Available for Benefits
|
||||||||||||
Year
Ended December 31
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Investment
income:
|
||||||||||||
Cash
dividends
|
$ | 2,480,552 | $ | 1,336,688 | $ | 1,431,425 | ||||||
Interest
|
1,091,696 | 965,603 | 907,029 | |||||||||
3,572,248 | 2,302,291 | 2,338,454 | ||||||||||
Net
realized gain (loss) on sale and distributions
|
||||||||||||
of
investments:
|
||||||||||||
Mutual
funds
|
(2,203,395 | ) | – | – | ||||||||
Other
collective investment trusts
|
(760,263 | ) | – | – | ||||||||
Common
Stock – Lincoln National Corporation
|
(3,553,903 | ) | 3,844,371 | 5,504,007 | ||||||||
Pooled
separate accounts – The Lincoln National Life
|
||||||||||||
Insurance
Company separate accounts
|
16,379,942 | 8,568,425 | 5,920,004 | |||||||||
9,862,381 | 12,412,796 | 11,424,011 | ||||||||||
Net
change in unrealized appreciation (depreciation)
|
||||||||||||
of
investments
|
(84,114,674 | ) | (8,070,015 | ) | 14,925,196 | |||||||
Contributions:
|
||||||||||||
Participants
|
7,988,435 | 8,793,200 | 7,889,483 | |||||||||
Sponsor
company
|
3,653,901 | 4,661,121 | 1,960,209 | |||||||||
11,642,336 | 13,454,321 | 9,849,692 | ||||||||||
Transfers
to (from) affiliated plans
|
2,511,221 | (36,541 | ) | (204,186 | ) | |||||||
Deposit
from Jefferson-Pilot 401(k) Plan
|
– | – | 14,357,318 | |||||||||
Distributions
to participants
|
(17,704,133 | ) | (26,167,088 | ) | (26,009,979 | ) | ||||||
Administrative
expenses
|
(88,650 | ) | (152,742 | ) | (173,808 | ) | ||||||
Net
increase (decrease) in net assets available for
benefits
|
(74,319,271 | ) | (6,256,978 | ) | 26,506,698 | |||||||
Net
assets available for benefits at beginning of the year
|
203,040,450 | 209,297,428 | 182,790,730 | |||||||||
Net
assets available for benefits at end of the year
|
$ | 128,721,179 | $ | 203,040,450 | $ | 209,297,428 | ||||||
See
accompanying notes to the financial statements.
|
||||||||||||
Years
of Service
|
Percent
Vested
|
|
1
|
0%
|
|
2
|
50%
|
|
3
or more
|
100%
|
December
31, 2008
|
December
31, 2007
|
|||||||||||||||||||||||
Number
of
Shares,
Units
or
Par Value
|
Net
Asset
Value
Per
Unit
|
Fair
Value
|
Number
of
Shares,
Units
or
Par Value
|
Net
Asset
Value
Per
Unit
|
Fair
Value
|
|||||||||||||||||||
Fair
values
|
||||||||||||||||||||||||
Mutual
funds:
|
||||||||||||||||||||||||
Columbia
Acorn Z
|
459,043.245 | $ | 17.710 | $ | 8,129,656 | * | – | $ | – | $ | – | |||||||||||||
Delaware
Conservative Allocation I
|
113,085.607 | 7.770 | 878,675 | – | – | – | ||||||||||||||||||
Delaware
Moderate Allocation I
|
302,589.806 | 8.010 | 2,423,744 | – | – | – | ||||||||||||||||||
Delaware
Aggressive Allocation I
|
199,207.873 | 7.000 | 1,394,455 | – | – | – | ||||||||||||||||||
Delaware
Mid Cap Value I
|
245,586.608 | 5.660 | 1,390,020 | – | – | – | ||||||||||||||||||
Dodge
& Cox International Stock
|
274,568.330 | 21.900 | 6,013,046 | – | – | – | ||||||||||||||||||
American
Fund Growth Fund of
America
R-5
|
422,607.570 | 20.440 | 8,638,099 | * | – | – | – | |||||||||||||||||
Harbor
International Growth
Institutional
|
890,942.000 | 8.110 | 7,225,540 | * | – | – | – | |||||||||||||||||
Vanguard
Institutional Index
|
119,468.046 | 82.540 | 9,860,893 | * | – | – | – | |||||||||||||||||
Vanguard
Extended Market Index
Institutional
|
92,317.823 | 24.020 | 2,217,474 | – | – | – | ||||||||||||||||||
Total
mutual funds
|
48,171,602 | |||||||||||||||||||||||
Other
collective investment trusts
|
||||||||||||||||||||||||
Delaware
Large Cap Value Trust
|
781,119.037 | 8.780 | 6,858,225 | * | – | – | – | |||||||||||||||||
Delaware
International Equity Trust
|
10,413.875 | 5.460 | 56,860 | – | – | – | ||||||||||||||||||
Delaware
Small Cap Growth Trust
|
605,693.008 | 6.850 | 4,148,997 | – | – | – | ||||||||||||||||||
Delaware
Diversified Income Trust
|
773,847.545 | 10.550 | 8,164,092 | * | – | – | – | |||||||||||||||||
Delaware
Large Cap Growth Trust
|
492,325.027 | 7.790 | 3,835,212 | – | – | – | ||||||||||||||||||
Total
collective investment trust
funds
|
23,063,386 | |||||||||||||||||||||||
Common
Stock - LNC
|
1,165,837.000 | $ | 18.840 | $ | 21,964,369 | * | 816,073 | $ | 58.220 | $ | 47,511,770 | * |
December
31, 2008
|
December
31, 2007
|
|||||||||||||||||||||||
Number
of
Shares,
Units
or
Par Value
|
Net
Asset
Value
Per
Unit
|
Fair
Value
|
Number
of
Shares,
Units or
Par
Value
|
Net
Asset Value Per Unit
|
Fair
Value
|
|||||||||||||||||||
Pooled
separate accounts – The
Lincoln
Life Insurance Company
Separate
Accounts:
|
||||||||||||||||||||||||
Core
Equity Account
|
– | $ | – | $ | – | 603,408.454 | $ | 17.535 | $ | 10,580,767 | * | |||||||||||||
Medium
Capitalization Equity
Account
|
– | – | – | 558,122.762 | 17.023 | 9,500,756 | ||||||||||||||||||
Short-Term
Account
|
– | – | – | 2,707,860.831 | 4.142 | 11,214,877 | * | |||||||||||||||||
Government/Corporate
Bond
Account
|
– | – | – | 502,647.363 | 9.843 | 4,947,357 | ||||||||||||||||||
Large
Capitalization Equity
Account
|
– | – | – | 703,700.685 | 10.991 | 7,734,304 | ||||||||||||||||||
Balanced
Account
|
– | – | – | 399,671.268 | 9.426 | 3,767,261 | ||||||||||||||||||
High
Yield Bond Account
|
– | – | – | 842,282.306 | 4.488 | 3,780,163 | ||||||||||||||||||
Small
Capitalization Equity
Account
|
– | – | – | 882,868.835 | 9.896 | 8,737,135 | ||||||||||||||||||
Value
Equity Account
|
– | – | – | 1,922,453.540 | 3.122 | 6,001,708 | ||||||||||||||||||
International
Equity Account
|
– | – | – | 941,916.059 | 12.562 | 11,832,632 | * | |||||||||||||||||
Conservative
Balanced Account
|
– | – | – | 409,589.675 | 2.510 | 1,028,234 | ||||||||||||||||||
Aggressive
Balanced Account
|
– | – | – | 608,494.129 | 2.988 | 1,817,998 | ||||||||||||||||||
Delaware
Growth and Income
Account
|
– | – | – | 2,079,971.566 | 2.138 | 4,446,147 | ||||||||||||||||||
Scudder
VIT Equity 500 Index
Account
|
– | – | – | 4,049,051.948 | 1.268 | 5,133,793 | ||||||||||||||||||
Fidelity
VIP Contrafund
|
– | – | – | 6,414,875.498 | 1.906 | 12,229,960 | * | |||||||||||||||||
Neuberger-Berman
AMT Regency
Account
|
– | – | – | 1,506,244.982 | 1.827 | 2,751,458 | ||||||||||||||||||
Social
Awareness Account
|
– | – | – | 1,311,610.737 | 1.365 | 1,789,955 | ||||||||||||||||||
American
Funds Insurance Series
Global
Growth
|
– | – | – | 4,869,650.703 | 1.457 | 7,094,107 | ||||||||||||||||||
Neuberger-Berman
Mid-Cap
Growth
Account
|
– | – | – | 3,341,287.715 | 1.702 | 5,687,874 | ||||||||||||||||||
Scudder
VIT Small Cap Index
Account
|
– | – | – | 1,781,845.843 | 1.859 | 3,313,342 | ||||||||||||||||||
Black
Rock Legacy
Account
|
– | – | – | 407,813.986 | 1.899 | 774,601 | ||||||||||||||||||
American
Funds International Account
|
– | – | – | 395,626.878 | 22.588 | 8,936,420 | ||||||||||||||||||
Total
pooled separate accounts
|
133,100,849 | |||||||||||||||||||||||
Contract value
(approximates fair value – See footnote 3)
|
||||||||||||||||||||||||
Investment
contracts – The Lincoln
National
Life Insurance Company
|
29,623,868 | 1 | 29,623,868 | * | 14,604,738.000 | – | 14,604,738 | * | ||||||||||||||||
Estimated
value
|
||||||||||||||||||||||||
Wilmington
Trust Money market fund
|
1,003,490 | 1 | 1,003,490 | – | – | – | ||||||||||||||||||
Wells
Fargo Bank short-term
|
||||||||||||||||||||||||
investment
account
|
– | – | – | 1,564,190.000 | – | 1,564,190 | ||||||||||||||||||
Participants
loans
|
3,572,337 | – | 3,572,337 | 3,996,682.000 | – | 3,996,682 | ||||||||||||||||||
Total
investments
|
$ | – | $ | 127,399,052 | $ | – | $ | 200,778,229 |
Year
Ended December 31
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Mutual
fund accounts
|
||||||||||||
Proceeds
from disposition of units
|
$ | 6,146,376 | $ | – | $ | – | ||||||
Cost
of units disposed
|
8,349,771 | – | – | |||||||||
Net
realized loss on sale and distribution of mutual
fund
accounts
|
$ | (2,203,395 | ) | $ | – | $ | – | |||||
Collective
investment trust funds
|
||||||||||||
Proceeds
from disposition of units
|
$ | 3,682,194 | $ | – | $ | – | ||||||
Cost
of units disposed
|
4,442,457 | – | – | |||||||||
Net
realized loss on sale and distribution of
collective
investment trust funds
|
$ | (760,263 | ) | $ | – | $ | – | |||||
Common
stock
|
||||||||||||
Proceeds
from disposition of stock
|
$ | 4,366,742 | $ | 7,729,845 | $ | 12,038,077 | ||||||
Cost
of stock disposed
|
7,920,645 | 3,885,474 | 6,534,070 | |||||||||
Net
realized gain (loss) on sale and distribution of
common
stock
|
$ | (3,553,903 | ) | $ | 3,844,371 | $ | 5,504,007 | |||||
Pooled
separate accounts
|
||||||||||||
Proceeds
from disposition of units
|
$ | 135,008,487 | $ | 49,126,170 | $ | 43,764,916 | ||||||
Cost
of units disposed
|
118,628,545 | 40,557,745 | 37,844,912 | |||||||||
Net
realized gain on sale and distribution of pooled
separate
accounts
|
$ | 16,379,942 | $ | 8,568,425 | $ | 5,920,004 | ||||||
Total
net realized gain on sale and distribution of
investments
|
$ | 9,862,381 | $ | 12,412,796 | $ | 11,424,011 |
Year
Ended December 31
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Fair
value in excess of (less than) cost:
|
||||||||||||
At
beginning of the year
|
$ | 55,277,366 | $ | 63,347,381 | $ | 48,422,185 | ||||||
At
end of the year
|
(28,837,308 | ) | 55,277,366 | 63,347,381 | ||||||||
Change
in net unrealized appreciation (depreciation) of
investments
|
$ | (84,114,674 | ) | $ | (8,070,015 | ) | $ | 14,925,196 | ||||
Mutual
funds
|
$ | (14,385,805 | ) | $ | – | $ | – | |||||
Other
collective investment trusts
|
(3,110,966 | ) | – | – | ||||||||
Common
stock – LNC
|
(24,931,330 | ) | (10,211,687 | ) | 7,023,661 | |||||||
Pooled
separate accounts – LNL
|
(41,686,573 | ) | 2,141,672 | 7,901,535 | ||||||||
Change
in net unrealized appreciation
(depreciation)
of investments
|
$ | (84,114,674 | ) | $ | (8,070,015 | ) | $ | 14,925,196 |
Investment
Options
|
||||||||||||||||||||||||||||
Total
|
1.A.
|
2.A.
|
3.A.
|
4.A.
|
5.A.
|
6.A.
|
||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||
Mutual
funds
|
$ | 48,171,602 | $ | 8,129,656 | $ | 878,675 | $ | 2,423,744 | $ | 1,394,455 | $ | 1,390,020 | $ | 6,013,046 | ||||||||||||||
Other
collective investment trusts
|
23,063,386 | – | – | – | – | – | – | |||||||||||||||||||||
Common
stock – LNC
|
21,964,369 | – | – | – | – | – | – | |||||||||||||||||||||
Wilmington
Trust money market
fund
|
1,003,490 | – | – | – | – | – | – | |||||||||||||||||||||
Investment
contracts
|
29,623,868 | – | – | – | – | – | – | |||||||||||||||||||||
Participant
loans
|
3,572,337 | – | – | – | – | – | – | |||||||||||||||||||||
Total
investments
|
127,399,052 | 8,129,656 | 878,675 | 2,423,744 | 1,394,455 | 1,390,020 | 6,013,046 | |||||||||||||||||||||
Accrued
interest receivable
|
118,613 | – | – | – | – | – | – | |||||||||||||||||||||
Cash
|
14,689 | – | – | – | – | – | – | |||||||||||||||||||||
Contributions
receivable from
participant
deferrals
|
40,306 | 2,734 | – | 582 | 286 | 303 | 899 | |||||||||||||||||||||
Contributions
receivable from
Sponsor
company
|
1,161,189 | 98,660 | 2,741 | 29,147 | 21,559 | 20,209 | 89,172 | |||||||||||||||||||||
Total
assets
|
128,733,849 | 8,231,050 | 881,416 | 2,453,473 | 1,416,300 | 1,410,532 | 6,103,117 | |||||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||||||
Due
to (from) broker
|
12,670 | 208 | – | – | – | – | 337 | |||||||||||||||||||||
Total
liabilities
|
12,670 | 208 | – | – | – | – | 337 | |||||||||||||||||||||
Net
assets available for benefits
|
$ | 128,721,179 | $ | 8,230,842 | $ | 881,416 | $ | 2,453,473 | $ | 1,416,300 | $ | 1,410,532 | $ | 6,102,780 | ||||||||||||||
Number
of participants selecting
investment
options
|
835 | 56 | 260 | 157 | 248 | 629 |
Investment
Options
|
||||||||||||||||||||||||||||
7.A. | 8.A. | 9.A. | 10.A. | 11.A. | 12.A. | 13.A. | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Investments:
|
||||||||||||||||||||||||||||
Mutual
funds
|
$ | 8,638,099 | $ | 7,225,540 | $ | 9,860,893 | $ | 2,217,474 | $ | – | $ | – | $ | – | ||||||||||||||
Other
collective investment trusts
|
– | – | – | – | 6,858,225 | 56,860 | 4,148,997 | |||||||||||||||||||||
Common
stock – LNC
|
– | – | – | – | – | – | – | |||||||||||||||||||||
Wilmington
Trust money market
fund
|
– | – | – | – | – | – | – | |||||||||||||||||||||
Investment
contracts
|
– | – | – | – | – | – | – | |||||||||||||||||||||
Participant
loans
|
– | – | – | – | – | – | – | |||||||||||||||||||||
Total
investments
|
8,638,099 | 7,225,540 | 9,860,893 | 2,217,474 | 6,858,225 | 56,860 | 4,148,997 | |||||||||||||||||||||
Accrued
interest receivable
|
– | – | – | – | – | – | – | |||||||||||||||||||||
Cash
|
– | – | – | – | – | – | – | |||||||||||||||||||||
Contributions
receivable from
participant
deferrals
|
5,988 | 6,001 | 2,336 | 1,998 | 2,042 | – | 642 | |||||||||||||||||||||
Contributions
receivable from
Sponsor
company
|
130,639 | 150,527 | 92,285 | 35,847 | 84,594 | 1,084 | 50,441 | |||||||||||||||||||||
Total
assets
|
8,774,726 | 7,382,068 | 9,955,514 | 2,255,319 | 6,944,861 | 57,944 | 4,200,080 | |||||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||||||
Due
to (from) broker
|
(2,068 | ) | (3,447 | ) | (1,089 | ) | – | (1,883 | ) | 208 | – | |||||||||||||||||
Total
liabilities
|
(2,068 | ) | (3,447 | ) | (1,089 | ) | – | (1,883 | ) | 208 | – | |||||||||||||||||
Net
assets available for benefits
|
$ | 8,776,794 | $ | 7,385,515 | $ | 9,956,603 | $ | 2,255,319 | $ | 6,946,744 | $ | 57,736 | $ | 4,200,080 | ||||||||||||||
Number
of participants selecting
investment
options
|
724 | 793 | 725 | 374 | 654 | 17 | 532 |
Investment
Options
|
||||||||||||||||||||||||
14.A.
|
15.A.
|
16.A.
|
17.A.
|
Loans
|
Short-term
|
|||||||||||||||||||
Assets | ||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||
Mutual
funds
|
$ | – | $ | – | $ | – | $ | – | $ | – | $ | – | ||||||||||||
Other
collective investment trusts
|
8,164,092 | 3,835,212 | – | – | – | – | ||||||||||||||||||
Common
stock – LNC
|
– | – | 21,964,369 | – | – | – | ||||||||||||||||||
Wilmington
Trust money market
fund
|
– | – | 561,866 | – | – | 441,624 | ||||||||||||||||||
Investment
contracts
|
– | – | – | 29,623,868 | – | – | ||||||||||||||||||
Participant
loans
|
– | – | – | – | 3,572,337 | – | ||||||||||||||||||
Total
investments
|
8,164,092 | 3,835,212 | 22,526,235 | 29,623,868 | 3,572,337 | 441,624 | ||||||||||||||||||
|
||||||||||||||||||||||||
Accrued
interest receivable
|
– | – | – | 118,613 | – | – | ||||||||||||||||||
Cash
|
– | – |