UNITED
STATES
|
SECURITIES
AND EXCHANGE COMMISSION
|
Washington,
D.C. 20549
|
FORM
11-K
|
FOR
ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS
|
AND
SIMILAR PLANS PURSUANT TO SECTION 15 (D) OF
|
THE
SECURITIES EXCHANGE ACT OF 1934
|
(Mark
One)
|
|X|
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES
|
EXCHANGE
ACT OF 1934
|
For
the fiscal year ended December 31, 2005
|
OR
|
|_|
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
|
SECURITIES
EXCHANGE ACT OF 1934
|
For
the transition period from ________ to ________
|
Commission
File Number 1-6028
|
A.
Full
title of the plan and the address of the plan, if different from
that of
the issuer named below:
|
THE
LINCOLN NATIONAL LIFE INSURANCE COMPANY AGENTS’ SAVINGS AND PROFIT-SHARING
PLAN
|
B.
Name of issuer of the securities held pursuant to the plan and the
address
of its principal executive office:
|
Lincoln
National Corporation
|
1500
Market Street, Suite 3900
|
Centre
Square West Tower
|
Philadelphia,
PA 19102
|
REQUIRED
INFORMATION
|
Financial
statements and schedules for the Lincoln National Life Insurance
Company
Agents’ Savings And Profit-Sharing Plan, prepared in accordance with the
financial reporting requirements of the Employee Retirement Income
Security Act of 1974, are contained in this Annual Report on Form
11-K.
|
Financial
Statements and Supplemental Schedule
|
The
Lincoln National Life Insurance Company
|
Agents’
Savings and Profit-Sharing Plan
|
December
31, 2005 and 2004 and for three years ended December 31, 2005,
2004, and
2003
|
with
Report of Independent Registered Public Accounting
Firm
|
The
Lincoln National Life Insurance Company
|
|
Agents’
Savings and Profit-Sharing Plan
|
|
Financial
Statements and Supplemental Schedule
|
|
December
31, 2005 and 2004 and for three years ended December 31, 2005,
2004, and
2003
|
|
Contents
|
|
Report
of Independent Registered Public Accounting Firm
|
1
|
Audited
Financial Statements:
|
|
Statements
of Net Assets Available for Plan Benefits
|
2
|
Statement
of Changes in net Assets Available for Plan Benefits
|
3
|
Notes
to Financial Statements
|
4
|
Supplemental
Schedule
|
|
Schedule
H, Line 4i—Schedule of Assets (Held At End of year)
|
20
|
Report
of Independent Registered Public Accounting
Firm
|
Lincoln
National Corporation Plan Administrator
|
Lincoln
National Corporation
|
We
have audited the accompanying statements of net assets available
for
benefits of The Lincoln National Life Insurance Company Agents’ Savings
and Profit-Sharing Plan as of December 31, 2005 and 2004, and the
related
statements of changes in net assets available for benefits for
each of the
three years in the period ended December 31, 2005. These financial
statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements
based on our audits.
|
|
We
conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable
assurance
about whether the financial statements are free of material misstatement.
We were not engaged to perform an audit of the Plan’s internal control
over financial reporting.
Our audit included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an
opinion on
the effectiveness of the Plan's internal control over financial
reporting.
Accordingly, we express no such opinion. An audit also includes
examining,
on a test basis, evidence supporting the amounts and disclosures
in the
financial statements, assessing the accounting principles used
and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide
a
reasonable basis for our opinion.
|
|
In
our opinion, the financial statements referred to above present
fairly, in
all material respects, the net assets available for benefits of
the Plan
at December 31, 2005 and 2004, and the changes in its net assets
available
for benefits for each of the three years in the period ended December
31,
2005, in conformity with U.S. generally accepted accounting
principles.
|
|
Our
audits were performed for the purpose of forming an opinion on
the
financial statements taken as a whole. The accompanying supplemental
schedule of assets (held at end of year) as of December 31, 2005,
is
presented for purposes of additional analysis and is not a required
part
of the financial statements but is supplementary information required
by
the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of
1974. This
supplemental schedule is the responsibility of the Plan's management.
The
supplemental schedule has been subjected to the auditing procedures
applied in our audits of the financial statements and, in our opinion,
is
fairly stated in all material respects in relation to the financial
statements taken as a whole.
|
/s/ Ernst & Young LLP |
Philadelphia,
Pennsylvania
|
March
24, 2006
|
The
Lincoln National Life Insurance Company
|
|||||||
Agents'
Savings and Profit-Sharing Plan
|
|||||||
Statements
of Net Assets Available for Plan Benefits
|
|||||||
December
31
|
|||||||
2005
|
2004
|
||||||
Assets
|
|||||||
Investments:
|
|||||||
Common
stock – Lincoln National Corporation
|
|||||||
(cost:
2005 – $37,144,896; 2004 – $43,578,228)
|
$
|
53,923,715
|
$
|
58,721,853
|
|||
Wells
Fargo Bank Short-Term Investment Account
|
800,619
|
1,195,934
|
|||||
Pooled
separate accounts – The Lincoln National
|
|||||||
Life
Insurance Company Separate Accounts
|
|||||||
(cost:
2005 – $76,485,949; 2004 – $72,213,058)
|
108,129,318
|
99,529,718
|
|||||
Investment
contracts – The Lincoln National
|
|||||||
Life
Insurance Company
|
14,904,972
|
17,598,686
|
|||||
Participant
loans
|
3,965,728
|
4,151,804
|
|||||
Total
investments
|
181,724,352
|
181,197,995
|
|||||
Accrued
interest receivable
|
53,592
|
60,484
|
|||||
Due
from broker
|
48,464
|
–
|
|||||
Contributions
receivable from employer companies
|
964,322
|
2,878,195
|
|||||
Total
assets
|
182,790,730
|
184,136,674
|
|||||
Liabilities
|
|||||||
Due
to broker
|
–
|
26,629
|
|||||
Total
liabilities
|
–
|
26,629
|
|||||
Net
assets available for plan benefits
|
$
|
182,790,730
|
$
|
184,110,045
|
|||
See
accompanying notes.
|
The
Lincoln National Life Insurance Company
|
||||||||||
Agents'
Savings and Profit-Sharing Plan
|
||||||||||
Statements
of Changes in Net Assets Available for Plan Benefits
|
||||||||||
Year
Ended December 31
|
||||||||||
2005
|
2004
|
|
2003
|
|||||||
Investment
income:
|
||||||||||
Cash
dividends – Lincoln National Corporation
|
$
|
1,637,253
|
$
|
1,819,776
|
$
|
1,924,171
|
||||
Interest:
|
||||||||||
The
Lincoln National Life
|
||||||||||
Insurance
Company Separate Accounts
|
690,088
|
748,249
|
638,100
|
|||||||
Other
|
236,082
|
250,743
|
275,985
|
|||||||
926,170
|
998,992
|
914,085
|
||||||||
2,563,423
|
2,818,768
|
2,838,256
|
||||||||
Net
realized gain (loss) on sale
|
||||||||||
and
distributions of investments:
|
||||||||||
Lincoln
National Corporation
|
||||||||||
common
stock
|
5,362,745
|
4,070,037
|
1,563,498
|
|||||||
|
||||||||||
The
Lincoln National Life Insurance
|
||||||||||
Company
Separate Accounts
|
3,712,858
|
1,652,409
|
(1,040,533
|
)
|
||||||
9,075,603
|
5,722,446
|
522,965
|
||||||||
Net
unrealized appreciation
|
||||||||||
of
investments
|
5,961,900
|
12,363,106
|
29,055,510
|
|||||||
Contributions:
|
||||||||||
Participants
|
7,297,381
|
7,452,877
|
6,280,189
|
|||||||
Employer
companies
|
3,068,581
|
5,199,336
|
6,056,534
|
|||||||
10,365,962
|
12,652,213
|
12,336,723
|
||||||||
Transfers
from affiliated plans
|
593,910
|
3,588,680
|
285,051
|
|||||||
Distributions
to participants
|
(29,711,933
|
)
|
(14,994,001
|
)
|
(15,112,736
|
)
|
||||
Administrative
expenses
|
(168,180
|
)
|
(128,210
|
)
|
(103,179
|
)
|
||||
Net
increase (decrease) in net
|
||||||||||
assets
available for plan benefits
|
(1,319,315
|
)
|
22,023,002
|
29,822,590
|
||||||
Net
assets available for plan benefits
|
||||||||||
at
beginning of the year
|
184,110,045
|
162,087,043
|
132,264,453
|
|||||||
Net
assets available for plan benefits
|
||||||||||
at
end of the year
|
$
|
182,790,730
|
$
|
184,110,045
|
$
|
162,087,043
|
||||
See
accompanying notes.
|
|
The
Lincoln National Life Insurance Company
|
Agents'
Savings and Profit-Sharing Plan
|
Notes
to Financial Statements
|
|
1.
Significant Accounting Policies
|
Investment
Valuation and Income Recognition
|
|
The
investment in Lincoln National Corporation ("LNC") common stock
is valued
at the closing sales price reported on the New York Stock Exchange
Composite Listing on the last business day of the year.
|
|
The
Wells Fargo Bank Short-Term Investment Account is valued at cost,
which
approximates fair value.
|
|
The
fair value of participation units in pooled separate accounts
is estimated
by The Lincoln National Life Insurance Company based on quoted
redemption value on the last business day of the year.
|
|
The
investment contracts are valued at contract value as estimated
by The
Lincoln National Life Insurance Company ("Lincoln Life"). Contract
value
represents net contributions plus interest at the contract rate.
The
contracts are fully benefit-responsive.
|
|
Participant
loans are valued at their outstanding balances, which approximate
fair
value.
|
|
The
cost of investments sold, distributed or forfeited is determined
using the
specific identification method. Investment purchases and sales
are
accounted for on a trade-date basis.
|
|
Interest
income is recorded on the accrual basis. Dividends are recorded
on the
ex-dividend date.
|
|
Use
of Estimates
|
|
Preparation
of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial
statements
and accompanying notes. Actual results could differ from those
estimates.
|
|
2.
Description of the Plan
|
|
The
Lincoln National Life Insurance Company Agents' Savings and Profit-Sharing
Plan ("Plan") is a contributory, defined contribution plan which
covers
eligible full-time agents of Lincoln Life and other participating
employers. A participant may make pre-tax contributions at a
rate of at
least 1% but not more than 25% of eligible earnings, up to a
maximum
annual amount as determined under applicable law. The Plan is
subject to
the provisions of the Employee Retirement Income Security Act
of 1974
(ERISA).
|
|
In
addition to each participant's pre-tax contributions, employer
matching
contributions to the Plan are provided in the form of a basic
match of
$0.50 for each dollar a participant contributes, not to exceed
6% of
eligible earnings, and an annual discretionary match of up to
$1.00 for
each dollar contributed by an eligible participant, not to exceed
6% of
eligible earnings. Participants employed on the last day of the
plan year
are eligible to receive the discretionary match, as are participants
who
retired, died, or became disabled during the plan year. The amount
of the
discretionary match varies according to whether LNC and Lincoln
Financial
Advisors Corporation have met certain performance-based criteria,
as
determined by the Compensation Committee of LNC's Board of
Directors.
|
The
Lincoln National Life Insurance Company
|
Agents'
Savings and Profit-Sharing Plan
|
Notes
to Financial Statements (continued)
|
2.
Description of the Plan (continued)
|
Participants’
pre-tax, other contributions, and earnings thereon are fully
vested at all
times. Employer contributions vest based upon years of service
as defined
in the Plan agreement as follows:
|
Years
of Service
|
Percent
Vested
|
1
|
0%
|
2
|
50%
|
3
or more
|
100%
|
Participants
direct the Plan to invest their contributions and the basic employer
matching contributions in any combination of the investment options
offered under the Plan. Discretionary employer contributions
are initially
invested in the LNC Common Stock Account; however, participants
can
immediately direct the investment of the discretionary employer
matching
contributions to other investment options.
|
|
The
employer has the right to discontinue contributions at any time
and
terminate the Plan subject to the provisions of ERISA. In the
event of
termination of the Plan, all amounts allocated to participants'
accounts
shall become fully vested.
|
|
The
Plan may make loans to participants in amounts up to 50% of the
vested
account value to a maximum of $50,000 but not more than the total
value of
the participant's accounts excluding employer contributions that
have not
been in the Plan for two full years, less the highest outstanding
loan
balance in the previous 12 month period. Interest charged on
new loans to
participants is established monthly based upon the prime rate
plus 1%.
Loans may be repaid over any period selected by the participant
up to a
maximum repayment period of 5 years except that the maximum repayment
period may be 20 years for the purchase of a principal
residence.
|
|
Upon
termination of service due to disability or retirement, a participant
or
beneficiary, in case of the participant's death, may elect to
receive
either a lump-sum amount equal to the entire value of the participant's
account or an installment option if certain criteria are met.
For
termination of service due to other reasons, a participant may
receive the
value of the vested interest in his or her account as a lump-sum
distribution. Vested account balances less than $1,000 are immediately
distributable under the terms of the Plan, without the participant's
consent, unless the participant has made a timely election of
rollover to
an Individual Retirement Account ("IRA") or other qualified
arrangement.
|
|
Each
participant's account is credited with the participant's contributions,
employer contributions, and applicable investment earnings thereon,
and is
charged with an allocation of administrative expenses and applicable
investment losses. Forfeited non-vested amounts are used to reduce
future
employer contributions.
|
The
Lincoln National Life Insurance Company
|
|
||||||||||||||||||||||
Agents'
Savings and Profit-Sharing Plan
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Notes
to Financial Statements (continued)
|
|||||||||||||||||||||||
3.
Investments
|
|||||||||||||||||||||||
The
following is a summary of assets held for investment:
|
|||||||||||||||||||||||
December
31, 2005
|
December
31, 2004
|
||||||||||||||||||||||
Number
of
|
Net
Asset
|
Number
of
|
|
Net
Asset
|
|
|
|
|
|||||||||||||||
|
|
Shares,
Units
|
|
Value
|
|
Fair
|
|
|
Shares,
Units
|
|
Value
|
|
Fair
|
|
|
||||||||
|
|
or
Par Value
|
|
Per
Unit
|
|
Value
|
|
|
or
Par Value
|
|
Per
Unit
|
|
Value
|
||||||||||
Fair
Values
|
|||||||||||||||||||||||
Common
stock – LNC
|
1,016,853
|
53
|
$
|
53,923,715
|
*
|
1,257,966
|
47
|
$
|
58,721,853
|
*
|
|||||||||||||
Pooled
separate account investment
|
|||||||||||||||||||||||
contracts
underwritten by Lincoln Life:
|
|||||||||||||||||||||||
Core
Equity Account
|
824,597.484
|
14.835
|
12,233,234
|
*
|
956,272.451
|
14.116
|
13,498,359
|
*
|
|||||||||||||||
Medium
Capitalization Equity Account
|
734,938.419
|
13.760
|
10,112,973
|
*
|
833,783.418
|
12.548
|
10,462,314
|
*
|
|||||||||||||||
Short-Term
Account
|
2,149,801.047
|
3.777
|
8,120,658
|
|
1,700,613.780
|
3.677
|
6,253,838
|
|
|||||||||||||||
Government/
Corporate Bond Account
|
354,494.503
|
8.943
|
3,170,138
|
|
291,777.749
|
8.725
|
2,545,761
|
|
|||||||||||||||
Large
Capitalization Equity Account
|
1,115,245.939
|
9.543
|
10,643,015
|
*
|
1,201,311.739
|
8.336
|
10,014,376
|
*
|
|||||||||||||||
Balanced
Account
|
339,718.660
|
8.129
|
2,761,505
|
|
261,627.576
|
7.654
|
2,002,419
|
|
|||||||||||||||
High
Yield Bond Account
|
842,271.585
|
3.932
|
3,312,065
|
|
721,142.318
|
3.779
|
2,725,052
|
|
|||||||||||||||
Small
Capitalization Equity Account
|
1,178,821.391
|
8.329
|
9,818,639
|
*
|
1,403,790.064
|
7.903
|
11,094,295
|
*
|
|||||||||||||||
Value
Equity Account
|
2,108,301.523
|
2.572
|
5,422,130
|
|
2,501,312.327
|
2.442
|
6,108,705
|
|
|||||||||||||||
International
Equity Account
|
1,098,341.429
|
9.766
|
10,726,842
|
*
|
1,067,960.074
|
8.701
|
9,292,320
|
*
|
|||||||||||||||
Conservative
Balanced Account
|
349,127.833
|
2.200
|
768,116
|
|
232,576.568
|
2.115
|
491,876
|
|
|||||||||||||||
Aggressive
Balanced Account
|
389,545.026
|
2.539
|
989,016
|
|
379,036.436
|
2.373
|
899,606
|
|
|||||||||||||||
Delaware
Growth and Income Account
|
1,156,905.944
|
1.785
|
2,065,540
|
|
918,745.140
|
1.693
|
1,555,893
|
|
|||||||||||||||
Scudder
VIT Equity 500 Index Account
|
3,616,416.234
|
1.049
|
3,793,259
|
|
4,168,208.538
|
1.005
|
4,189,465
|
|
|||||||||||||||
Fidelity
VIP Contrafund
|
5,256,435.601
|
1.458
|
7,665,460
|
|
4,383,002.727
|
1.250
|
5,478,314
|
|
|||||||||||||||
Neuberger-Berman
AMT Regency Account
|
2,056,425.337
|
1.596
|
3,281,027
|
|
1,894,203.416
|
1.427
|
2,702,461
|
|
|||||||||||||||
Social
Awareness Account
|
1,563,453.979
|
1.187
|
1,856,133
|
|
1,220,854.693
|
1.063
|
1,297,647
|
|
|||||||||||||||
American
Funds New Perspective
|
3,412,657.312
|
1.062
|
3,624,242
|
|
2,928,516.285
|
0.956
|
2,800,247
|
|
|||||||||||||||
Neuberger-Berman
Mid-Cap Growth Account
|
2,471,345.139
|
1.215
|
3,002,684
|
|
1,880,412.759
|
1.070
|
2,011,666
|
|
|||||||||||||||
Scudder
VIT Small Cap Index Account
|
1,621,173.104
|
1.621
|
2,627,273
|
|
1,878,239.710
|
1.557
|
2,924,044
|
|
|||||||||||||||
Janus
Aspen Growth Account
|
27,422.947
|
9.792
|
268,526
|
31,596.547
|
9.443
|
298,351
|
|||||||||||||||||
Fidelity
VIP Overseas Account
|
128,967.468
|
14.475
|
1,866,843
|
72,217.004
|
12.223
|
882,709
|
|||||||||||||||||
Total
pooled separate accounts
|
108,129,318
|
99,529,718
|
|||||||||||||||||||||
Contract
Value
|
|||||||||||||||||||||||
Investment
contracts
|
|||||||||||||||||||||||
underwritten
by Lincoln Life
|
14,904,972
|
14,904,972
|
*
|
17,598,686
|
17,598,686
|
*
|
|||||||||||||||||
Estimated
Value
|
|||||||||||||||||||||||
Wells
Fargo Bank short-term
|
|||||||||||||||||||||||
investment
account
|
800,619
|
800,619
|
|
1,195,934
|
1,195,934
|
|
|||||||||||||||||
Participants
loans
|
3,965,728
|
3,965,728
|
|
4,151,804
|
4,151,804
|
|
|||||||||||||||||
Total
investments
|
$
|
181,724,352
|
$
|
181,197,995
|
|||||||||||||||||||
|
|
||||||||||||||||||||||
*
Investments that represent 5% or more of the fair value of net
assets
available for benefits as of the indicated
date.
|
The
Lincoln National Life Insurance Company
|
|||||
Agents'
Savings and Profit-Sharing Plan
|
|||||
Notes
to Financial Statements (continued)
|
|||||
3.
Investments (continued)
|
|||||
Net
realized gain (loss) on sale and distribution of investments
is summarized
as follows:
|
Year
Ended December 31
|
||||||||||
2005
|
2004
|
|
2003
|
|||||||
Common
stock
|
||||||||||
Proceeds
from disposition of stock
|
$
|
14,876,314
|
$
|
11,566,749
|
$
|
6,636,009
|
||||
Cost
of stock disposed
|
9,513,569
|
7,496,712
|
5,072,511
|
|||||||
Net
realized gain on sale and distribution
|
||||||||||
of
common stock
|
$
|
5,362,745
|
$
|
4,070,037
|
$
|
1,563,498
|
||||
|
|
|
||||||||
Pooled
separate accounts
|
||||||||||
Proceeds
from disposition of units
|
$
|
33,710,587
|
$
|
29,304,850
|
$
|
33,001,417
|
||||
Cost
of units disposed
|
29,997,729
|
27,652,441
|
34,041,950
|
|||||||
Net
realized gain (loss) on sale and distribution
|
||||||||||
of
pooled separate accounts
|
$
|
3,712,858
|
$
|
1,652,409
|
$
|
(1,040,533
|
)
|
|||
|
|
|||||||||
The
net change in unrealized appreciation of investments in total
and by
investment classification as determined by fair value is summarized
as
follows:
|
||||||||||
|
Year
Ended December 31
|
|||||||||
2005
|
|
|
2004
|
|
|
2003
|
||||
Fair
value in excess of cost:
|
||||||||||
At
beginning of the year
|
$
|
42,460,285
|
$
|
30,097,179
|
$
|
1,041,669
|
||||
At
end of the year
|
48,422,185
|
42,460,285
|
30,097,179
|
|||||||
Change
in net unrealized appreciation of investments
|
$
|
5,961,900
|
$
|
12,363,106
|
$
|
29,055,510
|
||||
|
|
|
||||||||
Common
stock
|
$
|
1,635,194
|
$
|
4,108,565
|
$
|
11,125,039
|
||||
Pooled
separate accounts
|
4,326,706
|
8,254,541
|
17,930,471
|
|||||||
Change
in net unrealized appreciation of investments
|
$
|
5,961,900
|
$
|
12,363,106
|
$
|
29,055,510
|
||||
The
investment contracts (Guaranteed Account) earned an average interest
rate
of approximately 4.0% in all three years. The credited interest
rates for
new contributions, which approximate the current market rate,
were 4.0% at
both December 31, 2005 and 2004, respectively. The rate on new
contributions is guaranteed through the three succeeding calendar
year
quarters. The credited interest rates for the remaining contract
value
balance was 4.0% at both December 31, 2005 and 2004, and were
determined
based upon the performance of Lincoln Life's general account.
The credited
interest rates can be changed quarterly. The minimum guaranteed
rate is
4.0%. The guarantee is based on Lincoln Life's ability to meet
its
financial obligations from the general assets of Lincoln Life.
Restrictions apply to the aggregate movement of funds to other
investment
options. The fair value of the investment contracts approximates
contract
value. Participants are allocated interest on the investment
contracts
based on the average rate earned on all plan investments in the
investment contracts.
|
The
Lincoln National Life Insurance Company
|
|||||||||||||
Agents'
Savings and Profit-Sharing Plan
|
|||||||||||||
Notes
to Financial Statements (continued)
|
|||||||||||||
4.
Investment Options
|
|||||||||||||
The
detail of the net assets available for plan benefits by investment
option
is as follows:
|
Investment
Options
|
||||||||||||||||||||||
December
31, 2005
|
Total
|
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|
6
|
|||||||||
Assets
|
||||||||||||||||||||||
Investments:
|
||||||||||||||||||||||
Common
stock
|
$
|
53,923,715
|
$
|
53,923,715
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||
Short-term
investment fund
|
800,619
|
800,619
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Pooled
separate accounts
|
108,129,318
|
–
|
–
|
12,233,234
|
10,112,973
|
8,120,658
|
3,170,138
|
|||||||||||||||
Investment
contracts
|
14,904,972
|
–
|
14,904,972
|
–
|
–
|
–
|
–
|
|||||||||||||||
Participant
loans
|
3,965,728
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Total
investments
|
181,724,352
|
54,724,334
|
14,904,972
|
12,233,234
|
10,112,973
|
8,120,658
|
3,170,138
|
|||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
Accrued
interest receivable
|
53,592
|
5,147
|
48,445
|
–
|
–
|
–
|
–
|
|||||||||||||||
Due
from (to) broker
|
48,464
|
–
|
22,523
|
–
|
–
|
–
|
–
|
|||||||||||||||
Contributions
receivable from employer companies
|
964,322
|
964,322
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Net
assets available for plan benefits
|
$
|
182,790,730
|
$
|
55,693,803
|
$
|
14,975,940
|
$
|
12,233,234
|
$
|
10,112,973
|
$
|
8,120,658
|
$
|
3,170,138
|
||||||||
Number
of participants selecting investment options
|
1,293
|
317
|
551
|
597
|
200
|
242
|
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
Investment
Options
|
||||||||||||||||||||||
December
31, 2005
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
|
11
|
|
|
12
|
|
|
13
|
|||
Assets
|
||||||||||||||||||||||
Investments:
|
||||||||||||||||||||||
Common
stock
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||
Short-term
investment account
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Pooled
separate accounts
|
10,643,015
|
2,761,505
|
3,312,065
|
9,818,639
|
5,422,130
|
10,726,842
|
768,116
|
|||||||||||||||
Investment
contracts
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Participant
loans
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Total
investments
|
10,643,015
|
2,761,505
|
3,312,065
|
9,818,639
|
5,422,130
|
10,726,842
|
768,116
|
|||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
Accrued
interest receivable
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Due
from (to) broker
|
2,192
|
1,978
|
(117,764
|
)
|
3,652
|
4,026
|
45,372
|
–
|
||||||||||||||
Contributions
receivable from employer companies
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Net
assets available for plan benefits
|
$
|
10,645,207
|
$
|
2,763,483
|
$
|
3,194,301
|
$
|
9,822,291
|
$
|
5,426,156
|
$
|
10,772,214
|
$
|
768,116
|
||||||||
Number
of participants selecting investment options
|
641
|
200
|
356
|
697
|
455
|
742
|
55
|
|||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
|
||||||||||||||||||||||
Investment
Options
|
||||||||||||||||||||||
December
31, 2005
|
14
|
|
|
15
|
|
|
16
|
|
|
17
|
|
|
18
|
|
|
19
|
|
|
20
|
|||
Assets
|
||||||||||||||||||||||
Investments:
|
||||||||||||||||||||||
Common
stock
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||
Short-term
investment account
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Pooled
separate accounts
|
989,016
|
2,065,540
|
3,793,259
|
7,665,460
|
3,281,027
|
1,856,133
|
3,624,242
|
|||||||||||||||
Investment
contracts
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Participant
loans
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Total
investments
|
989,016
|
2,065,540
|
3,793,259
|
7,665,460
|
3,281,027
|
1,856,133
|
3,624,242
|
|||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
Accrued
interest receivable
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Due
from (to) broker
|
–
|
–
|
–
|
38,037
|
1,826
|
813
|
7,893
|
|||||||||||||||
Contributions
receivable from employer companies
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Net
assets available for plan benefits
|
$
|
989,016
|
$
|
2,065,540
|
$
|
3,793,259
|
$
|
7,703,497
|
$
|
3,282,853
|
$
|
1,856,946
|
$
|
3,632,135
|
||||||||
Number
of participants selecting investment options
|
122
|
245
|
200
|
466
|
292
|
134
|
320
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
Investment
Options
|
||||||||||||||||||||||
December
31, 2005
|
21
|
|
|
22
|
|
|
23
|
|
|
24
|
|
|
Loans
|
|||||||||
Assets
|
||||||||||||||||||||||
Investments:
|
||||||||||||||||||||||
Common
stock
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||||||
Short-term
investment account
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||||
Pooled
separate accounts
|
3,002,684
|
2,627,273
|
268,526
|
1,866,843
|
– | |||||||||||||||||
Investment
contracts
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||||
Participant
loans
|
–
|
–
|
–
|
–
|
3,965,728
|
|||||||||||||||||
Total
investments
|
3,002,684
|
2,627,273
|
268,526
|
1,866,843
|
3,965,728
|
|||||||||||||||||
|
|
|
|
|
||||||||||||||||||
Accrued
interest receivable
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||||
Due
from (to) broker
|
–
|
–
|
802
|
37,114
|
–
|
|||||||||||||||||
Contributions
receivable from employer companies
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||||
Net
assets available for plan benefits
|
$
|
3,002,684
|
$
|
2,627,273
|
$
|
269,328
|
$
|
1,903,957
|
$
|
3,965,728
|
||||||||||||
Number
of participants selecting investment options
|
323
|
306
|
38
|
212
|
215
|
The
Lincoln National Life Insurance Company
|
|||||||||||||
Agents'
Savings and Profit-Sharing Plan
|
|||||||||||||
Notes
to Financial Statements (continued)
|
|||||||||||||
4.
Investment Options
|
|||||||||||||
The
detail of the net assets available for plan benefits by investment
option
is as follows:
|
Investment
Options
|
||||||||||||||||||||||
December
31, 2004
|
Total
|
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|
6
|
|||||||||
Assets
|
||||||||||||||||||||||
Investments:
|
||||||||||||||||||||||
Common
stock
|
$
|
58,721,853
|
$
|
58,721,853
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||
Short-term
investment account
|
1,195,934
|
1,195,934
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Pooled
separate accounts
|
99,529,718
|
–
|
–
|
13,498,359
|
10,462,314
|
6,253,838
|
2,545,761
|
|||||||||||||||
Investment
contracts
|
17,598,686
|
–
|
17,598,686
|
–
|
–
|
–
|
–
|
|||||||||||||||
Participant
loans
|
4,151,804
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Total
investments
|
181,197,995
|
59,917,787
|
17,598,686
|
13,498,359
|
10,462,314
|
6,253,838
|
2,545,761
|
|||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
Accrued
interest receivable
|
60,484
|
2,134
|
58,350
|
–
|
–
|
–
|
–
|
|||||||||||||||
Due
from (to) broker
|
(26,629
|
)
|
–
|
85
|
74,516
|
66,870
|
–
|
34,989
|
||||||||||||||
Contributions
receivable from employer companies
|
2,878,195
|
2,878,195
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Net
assets available for plan benefits
|
$
|
184,110,045
|
$
|
62,798,116
|
$
|
17,657,121
|
$
|
13,572,875
|
$
|
10,529,184
|
$
|
6,253,838
|
$
|
2,580,750
|
||||||||
Number
of participants selecting investment options
|
1,423
|
340
|
631
|
699
|
230
|
247
|
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
Investment
Options
|
||||||||||||||||||||||
December
31, 2004
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
|
11
|
|
|
12
|
|
|
13
|
|||
Assets
|
||||||||||||||||||||||
Investments:
|
||||||||||||||||||||||
Common
stock
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||
Short-term
investment account
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Pooled
separate accounts
|
10,014,376
|
2,002,419
|
2,725,052
|
11,094,295
|
6,108,705
|
9,292,320
|
491,876
|
|||||||||||||||
Investment
contracts
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Participant
loans
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Total
investments
|
10,014,376
|
2,002,419
|
2,725,052
|
11,094,295
|
6,108,705
|
9,292,320
|
491,876
|
|||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
Accrued
interest receivable
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Due
from (to) broker
|
18,155
|
4,545
|
(4,085
|
)
|
83,286
|
(26,624
|
)
|
57,800
|
126
|
|||||||||||||
Contributions
receivable from employer companies
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Net
assets available for plan benefits
|
$
|
10,032,531
|
$
|
2,006,964
|
$
|
2,720,967
|
$
|
11,177,581
|
$
|
6,082,081
|
$
|
9,350,120
|
$
|
492,002
|
||||||||
Number
of participants selecting investment options
|
737
|
209
|
361
|
808
|
536
|
710
|
55
|
|||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
Investment
Options
|
||||||||||||||||||||||
December
31, 2004
|
14
|
|
|
15
|
|
|
16
|
|
|
17
|
|
|
18
|
|
|
19
|
|
|
20
|
|||
Assets
|
||||||||||||||||||||||
Investments:
|
||||||||||||||||||||||
Common
stock
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||
Short-term
investment account
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Pooled
separate accounts
|
899,606
|
1,555,893
|
4,189,465
|
5,478,314
|
2,702,461
|
1,297,647
|
2,800,247
|
|||||||||||||||
Investment
contracts
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Participant
loans
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Total
investments
|
899,606
|
1,555,893
|
4,189,465
|
5,478,314
|
2,702,461
|
1,297,647
|
2,800,247
|
|||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
Accrued
interest receivable
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Due
from (to) broker
|
–
|
3,579
|
(22,688
|
)
|
(108,815
|
)
|
(128,944
|
)
|
91,085
|
(63,077
|
)
|
|||||||||||
Contributions
receivable from employer companies
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Net
assets available for plan benefits
|
$
|
899,606
|
$
|
1,559,472
|
$
|
4,166,777
|
$
|
5,369,499
|
$
|
2,573,517
|
$
|
1,388,732
|
$
|
2,737,170
|
||||||||
Number
of participants selecting investment options
|
111
|
183
|
225
|
376
|
226
|
99
|
259
|
|||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
Investment
Options
|
||||||||||||||||||||||
December
31, 2004
|
21
|
|
|
22
|
|
|
23
|
|
|
24
|
|
|
Loans
|
|||||||||
Assets
|
||||||||||||||||||||||
Investments:
|
||||||||||||||||||||||
Common
stock
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||||||
Short-term
investment account
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||||
Pooled
separate accounts
|
2,011,666
|
2,924,044
|
298,351
|
882,709
|
– | |||||||||||||||||
Investment
contracts
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||||
Participant
loans
|
–
|
–
|
–
|
–
|
4,151,804
|
|||||||||||||||||
Total
investments
|
2,011,666
|
2,924,044
|
298,351
|
882,709
|
4,151,804
|
|||||||||||||||||
|
|
|
|
|
||||||||||||||||||
Accrued
interest receivable
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||||
Due
from (to) broker
|
(25,532
|
)
|
(95,448
|
)
|
13,081
|
467
|
–
|
|||||||||||||||
Contributions
receivable from employer companies
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||||
Net
assets available for plan benefits
|
$
|
1,986,134
|
$
|
2,828,596
|
$
|
311,432
|
$
|
883,176
|
$
|
4,151,804
|
||||||||||||
Number
of participants selecting investment options
|
303
|
307
|
46
|
163
|
233
|
The
Lincoln National Life Insurance Company
|
|||||||||||||
Agents'
Savings and Profit-Sharing Plan
|
|||||||||||||
Notes
to Financial Statements (continued)
|
|||||||||||||
4.
Investment Options (continued)
|
|||||||||||||
The
detail of the changes in net assets available for plan benefits
by
investment option is as follows:
|
Investment
Options
|
||||||||||||||||||||||
December
31, 2005
|
Total
|
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|
6
|
|||||||||
Investment
income:
|
||||||||||||||||||||||
Cash
dividends
|
$
|
1,637,253
|
$
|
1,637,253
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||
Interest
|
926,170
|
42,239
|
647,849
|
–
|
–
|
–
|
–
|
|||||||||||||||
Total
investment income
|
2,563,423
|
1,679,492
|
647,849
|
–
|
–
|
–
|
–
|
|||||||||||||||
Net
realized gain (loss) on sale and
|
||||||||||||||||||||||
distribution
of investments:
|
||||||||||||||||||||||
Common
stock
|
5,362,745
|
5,362,745
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Pooled
separate accounts
|
3,712,858
|
–
|
–
|
514,050
|
197,691
|
88,332
|
95,153
|
|||||||||||||||
Total
net realized gains (losses)
|
9,075,603
|
5,362,745
|
–
|
514,050
|
197,691
|
88,332
|
95,153
|
|||||||||||||||
Net
unrealized appreciation
|
||||||||||||||||||||||
(depreciation)
of investments
|
5,961,900
|
1,635,194
|
–
|
77,193
|
700,898
|
133,138
|
(24,307
|
)
|
||||||||||||||
Contributions:
|
||||||||||||||||||||||
Participant
|
7,297,381
|
859,454
|
270,526
|
612,107
|
479,192
|
199,702
|
152,453
|
|||||||||||||||
Employer
companies
|
3,068,581
|
1,150,018
|
85,980
|
186,798
|
155,517
|
53,989
|
41,201
|
|||||||||||||||
Total
contributions
|
10,365,962
|
2,009,472
|
356,506
|
798,905
|
634,709
|
253,691
|
193,654
|
|||||||||||||||
Transfers
to affiliated plans
|
593,910
|
217,401
|
(743,178
|
)
|
132,721
|
163,042
|
182,088
|
59,014
|
||||||||||||||
Distributions
to participants
|
(29,711,933
|
)
|
(7,879,541
|
)
|
(4,457,185
|
)
|
(2,198,565
|
)
|
(1,267,810
|
)
|
(2,321,490
|
)
|
(298,239
|
)
|
||||||||
Administrative
expenses
|
(168,180
|
)
|
(36,944
|
)
|
(10,716
|
)
|
(8,525
|
)
|
(6,746
|
)
|
(57,406
|
)
|
(1,926
|
)
|
||||||||
Net
transfers
|
–
|
(10,092,131
|
)
|
1,525,542
|
(655,420
|
)
|
(837,995
|
)
|
3,588,467
|
566,039
|
||||||||||||
Net
increase (decrease) in net
|
||||||||||||||||||||||
assets
available for plan benefits
|
(1,319,315
|
)
|
(7,104,312
|
)
|
(2,681,182
|
)
|
(1,339,641
|
)
|
(416,211
|
)
|
1,866,820
|
589,388
|
||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at beginning of the year
|
184,110,045
|
62,798,115
|
17,657,122
|
13,572,875
|
10,529,184
|
6,253,838
|
2,580,750
|
|||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at end of the year
|
$
|
182,790,730
|
$
|
55,693,803
|
$
|
14,975,940
|
$
|
12,233,234
|
$
|
10,112,973
|
$
|
8,120,658
|
$
|
3,170,138
|
||||||||
Investment
Options
|
||||||||||||||||||||||
December
31, 2005
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
|
11
|
|
|
12
|
|
|
13
|
|||
Investment
income:
|
||||||||||||||||||||||
Cash
dividends
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||
Interest
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Total
investment income
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Net
realized gain (loss) on sale and
|
||||||||||||||||||||||
distribution
of investments:
|
||||||||||||||||||||||
Common
stock
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Pooled
separate accounts
|
(44,606
|
)
|
43,149
|
152,770
|
453,756
|
262,800
|
644,155
|
26,505
|
||||||||||||||
Total
net realized gains (losses)
|
(44,606
|
)
|
43,149
|
152,770
|
453,756
|
262,800
|
644,155
|
26,505
|
||||||||||||||
Net
unrealized appreciation
|
||||||||||||||||||||||
(depreciation)
of investments
|
1,351,784
|
100,270
|
(39,709
|
)
|
(44,275
|
)
|
34,382
|
540,865
|
(2,420
|
)
|
||||||||||||
Contributions:
|
||||||||||||||||||||||
Participant
|
625,193
|
199,116
|
193,078
|
589,557
|
425,804
|
630,715
|
46,819
|
|||||||||||||||
Employer
companies
|
206,728
|
57,264
|
52,986
|
176,482
|
130,489
|
186,837
|
14,330
|
|||||||||||||||
Total
contributions
|
831,921
|
256,380
|
246,064
|
766,039
|
556,293
|
817,552
|
61,149
|
|||||||||||||||
Transfers
to affiliated plans
|
206,411
|
(1,872
|
)
|
15,440
|
99,710
|
(18,544
|
)
|
94,767
|
–
|
|||||||||||||
Distributions
to participants
|
(1,204,026
|
)
|
(286,433
|
)
|
(496,943
|
)
|
(1,158,782
|
)
|
(1,034,061
|
)
|
(1,465,613
|
)
|
(171,537
|
)
|
||||||||
Administrative
expenses
|
(6,582
|
)
|
(1,529
|
)
|
(1,952
|
)
|
(6,865
|
)
|
(4,036
|
)
|
(6,781
|
)
|
(363
|
)
|
||||||||
Net
transfers
|
(522,226
|
)
|
646,554
|
597,664
|
(1,464,873
|
)
|
(452,759
|
)
|
797,149
|
362,780
|
||||||||||||
Net
increase (decrease) in net
|
||||||||||||||||||||||
assets
available for plan benefits
|
612,676
|
756,519
|
473,334
|
(1,355,290
|
)
|
(655,925
|
)
|
1,422,094
|
276,114
|
|||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at beginning of the year
|
10,032,531
|
2,006,964
|
2,720,967
|
11,177,581
|
6,082,081
|
9,350,120
|
492,002
|
|||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at end of the year
|
$
|
10,645,207
|
$
|
2,763,483
|
$
|
3,194,301
|
$
|
9,822,291
|
$
|
5,426,156
|
$
|
10,772,214
|
$
|
768,116
|
The
Lincoln National Life Insurance Company
|
|||||||||||||
Agents'
Savings and Profit-Sharing Plan
|
|||||||||||||
Notes
to Financial Statements (continued)
|
|||||||||||||
4.
Investment Options (continued)
|
|||||||||||||
The
detail of the changes in net assets available for plan benefits
by
investment option is as follows:
|
Investment
Options
|
||||||||||||||||||||||
December
31, 2005
|
14
|
|
15
|
|
16
|
|
17
|
|
18
|
|
19
|
|
20
|
|||||||||
Investment
income:
|
||||||||||||||||||||||
Cash
dividends
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||
Interest
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Total
investment income
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Net
realized gain (loss) on sale and
|
||||||||||||||||||||||
distribution
of investments:
|
||||||||||||||||||||||
Common
stock
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Pooled
separate accounts
|
32,158
|
101,874
|
181,527
|
373,408
|
165,181
|
58,926
|
22,319
|
|||||||||||||||
Total
net realized gains (losses)
|
32,158
|
101,874
|
181,527
|
373,408
|
165,181
|
58,926
|
22,319
|
|||||||||||||||
Net
unrealized appreciation
|
||||||||||||||||||||||
(depreciation)
of investments
|
28,796
|
4,754
|
(34,315
|
)
|
599,476
|
167,744
|
107,488
|
332,675
|
||||||||||||||
Contributions:
|
||||||||||||||||||||||
Participant
|
117,921
|
217,327
|
207,077
|
444,807
|
192,202
|
70,734
|
245,289
|
|||||||||||||||
Employer
companies
|
33,191
|
61,604
|
55,301
|
129,854
|
55,788
|
18,686
|
70,640
|
|||||||||||||||
Total
contributions
|
151,112
|
278,931
|
262,378
|
574,661
|
247,990
|
89,420
|
315,929
|
|||||||||||||||
Transfers
to affiliated Plans
|
541
|
(135,884
|
)
|
181,772
|
54,920
|
22,478
|
7,463
|
19,999
|
||||||||||||||
Distributions
to participants
|
(179,329
|
)
|
(393,704
|
)
|
(517,067
|
)
|
(1,589,320
|
)
|
(441,613
|
)
|
(245,708
|
)
|
(420,056
|
)
|
||||||||
Administrative
expenses
|
(637
|
)
|
(1,278
|
)
|
(2,622
|
)
|
(3,996
|
)
|
(1,962
|
)
|
(982
|
)
|
(2,019
|
)
|
||||||||
Net
transfers
|
56,769
|
651,375
|
(445,191
|
)
|
2,324,849
|
549,518
|
451,607
|
626,118
|
||||||||||||||
Net
increase (decrease) in net
|
||||||||||||||||||||||
assets
available for plan benefits
|
89,410
|
506,068
|
(373,518
|
)
|
2,333,998
|
709,336
|
468,214
|
894,965
|
||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at beginning of the year
|
899,606
|
1,559,472
|
4,166,777
|
5,369,499
|
2,573,517
|
1,388,732
|
2,737,170
|
|||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at end of the year
|
$
|
989,016
|
$
|
2,065,540
|
$
|
3,793,259
|
$
|
7,703,497
|
$
|
3,282,853
|
$
|
1,856,946
|
$
|
3,632,135
|
||||||||
Investment
Options
|
||||||||||||||||||||||
December
31, 2005
|
21
|
|
|
22
|
|
|
23
|
|
|
24
|
|
|
Loans
|
|||||||||
Investment
income:
|
||||||||||||||||||||||
Cash
dividends
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||||||
Interest
|
–
|
–
|
–
|
–
|
236,082
|
|||||||||||||||||
Total
investment income
|
–
|
–
|
–
|
–
|
236,082
|
|||||||||||||||||
Net
realized gain (loss) on sale and
|
||||||||||||||||||||||
distribution
of investments:
|
||||||||||||||||||||||
Common
stock
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||||
Pooled
separate accounts
|
87,659
|
176,798
|
12,781
|
66,472
|
–
|
|||||||||||||||||
Total
net realized gains (losses)
|
87,659
|
176,798
|
12,781
|
66,472
|
–
|
|||||||||||||||||
Net
unrealized appreciation
|
||||||||||||||||||||||
(depreciation)
of investments
|
229,555
|
(114,432
|
)
|
(7,020
|
)
|
184,166
|
–
|
|||||||||||||||
Contributions:
|
||||||||||||||||||||||
Participant
|
209,420
|
202,110
|
19,306
|
87,472
|
–
|
|||||||||||||||||
Employer
companies
|
63,421
|
53,310
|
4,350
|
23,817
|
–
|
|||||||||||||||||
Total
contributions
|
272,841
|
255,420
|
23,656
|
111,289
|
–
|
|||||||||||||||||
Transfers
to affiliated plans
|
19,782
|
12,779
|
402
|
2,658
|
–
|
|||||||||||||||||
Distributions
to participants
|
(308,526
|
)
|
(468,134
|
)
|
(110,036
|
)
|
(376,057
|
)
|
(422,158
|
)
|
||||||||||||
Administrative
expenses
|
(1,584
|
)
|
(1,789
|
)
|
(157
|
)
|
(783
|
)
|
–
|
|||||||||||||
Net
transfers
|
716,823
|
(61,965
|
)
|
38,270
|
1,033,036
|
–
|
||||||||||||||||
Net
increase (decrease) in net
|
||||||||||||||||||||||
assets
available for plan benefits
|
1,016,550
|
(201,323
|
)
|
(42,104
|
)
|
1,020,781
|
(186,076
|
)
|
||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at beginning of the year
|
1,986,134
|
2,828,596
|
311,432
|
883,176
|
4,151,804
|
|||||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at end of the year
|
$
|
3,002,684
|
$
|
2,627,273
|
$
|
269,328
|
$
|
1,903,957
|
$
|
3,965,728
|
The
Lincoln National Life Insurance Company
|
Agents'
Savings and Profit-Sharing Plan
|
|
Notes
to Financial Statements (continued)
|
4.
Investment Options (continued)
|
The
detail of the changes in net assets available for plan benefits
by
investment option is as follows:
|
Investment
Options
|
||||||||||||||||||||||
December
31, 2004
|
Total
|
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|
6
|
|||||||||
Investment
income:
|
||||||||||||||||||||||
Cash
dividends
|
$
|
1,819,776
|
$
|
1,819,776
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||
Interest
|
998,992
|
24,854
|
723,395
|
–
|
–
|
–
|
–
|
|||||||||||||||
Total
investment income
|
2,818,768
|
1,844,630
|
723,395
|
–
|
–
|
–
|
–
|
|||||||||||||||
Net
realized gain (loss) on sale and
|
||||||||||||||||||||||
distribution
of investments:
|
||||||||||||||||||||||
Common
stock
|
4,070,037
|
4,070,037
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Pooled
separate accounts
|
1,652,409
|
–
|
–
|
203,967
|
(3,539
|
)
|
51,005
|
118,385
|
||||||||||||||
Total
net realized gains (losses)
|
5,722,446
|
4,070,037
|
–
|
203,967
|
(3,539
|
)
|
51,005
|
118,385
|
||||||||||||||
Net
unrealized appreciation
|
||||||||||||||||||||||
(depreciation)
of investments
|
12,363,106
|
4,108,565
|
–
|
1,184,989
|
1,379,549
|
1,288
|
34,359
|
|||||||||||||||
Contributions:
|
||||||||||||||||||||||
Participant
|
7,452,877
|
748,914
|
248,869
|
691,806
|
602,308
|
244,033
|
150,522
|
|||||||||||||||
Employer
companies
|
5,199,336
|
3,161,387
|
85,062
|
223,592
|
200,559
|
64,686
|
40,739
|
|||||||||||||||
Total
contributions
|
12,652,213
|
3,910,301
|
333,931
|
915,398
|
802,867
|
308,719
|
191,261
|
|||||||||||||||
Transfers
to affiliated plans
|
3,588,680
|
614,533
|
871,935
|
296,183
|
276,040
|
141,047
|
76,543
|
|||||||||||||||
Distributions
to participants
|
(14,994,001
|
)
|
(5,348,906
|
)
|
(1,809,653
|
)
|
(780,660
|
)
|
(705,912
|
)
|
(1,789,266
|
)
|
(289,392
|
)
|
||||||||
Administrative
expenses
|
(128,210
|
)
|
(46,539
|
)
|
(12,364
|
)
|
(9,549
|
)
|
(7,507
|
)
|
(4,818
|
)
|
(1,914
|
)
|
||||||||
Net
transfers
|
–
|
(6,687,825
|
)
|
1,601,822
|
(339,334
|
)
|
(686,780
|
)
|
1,944,681
|
143,516
|
||||||||||||
Net
increase (decrease) in net
|
||||||||||||||||||||||
assets
available for plan benefits
|
22,023,002
|
2,464,796
|
1,709,066
|
1,470,994
|
1,054,718
|
652,656
|
272,758
|
|||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at beginning of the year
|
162,087,043
|
60,333,320
|
15,948,055
|
12,101,881
|
9,474,466
|
5,601,182
|
2,307,992
|
|||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at end of the year
|
$
|
184,110,045
|
$
|
62,798,116
|
$
|
17,657,121
|
$
|
13,572,875
|
$
|
10,529,184
|
$
|
6,253,838
|
$
|
2,580,750
|
||||||||
Investment
Options
|
||||||||||||||||||||||
December
31, 2004
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
|
11
|
|
|
12
|
|
|
13
|
|||
Investment
income:
|
||||||||||||||||||||||
Cash
dividends
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||
Interest
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Total
investment income
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Net
realized gain (loss) on sale and
|
||||||||||||||||||||||
distribution
of investments:
|
||||||||||||||||||||||
Common
stock
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Pooled
separate accounts
|
(188,688
|
)
|
55,178
|
136,428
|
305,375
|
89,484
|
272,710
|
18,830
|
||||||||||||||
Total
net realized gains (losses)
|
(188,688
|
)
|
55,178
|
136,428
|
305,375
|
89,484
|
272,710
|
18,830
|
||||||||||||||
Net
unrealized appreciation
|
||||||||||||||||||||||
(depreciation)
of investments
|
431,322
|
108,514
|
134,775
|
1,004,627
|
502,684
|
1,267,577
|
16,777
|
|||||||||||||||
Contributions:
|
||||||||||||||||||||||
Participant
|
805,344
|
173,788
|
185,635
|
741,598
|
497,130
|
591,062
|
36,869
|
|||||||||||||||
Employer
companies
|
261,466
|
53,278
|
55,264
|
227,043
|
150,881
|
182,480
|
11,905
|
|||||||||||||||
Total
contributions
|
1,066,810
|
227,066
|
240,899
|
968,641
|
648,011
|
773,542
|
48,774
|
|||||||||||||||
Transfers
to affiliated plans
|
155,178
|
1,501
|
19,033
|
225,840
|
158,488
|
116,473
|
–
|
|||||||||||||||
Distributions
to participants
|
(777,277
|
)
|
(183,498
|
)
|
(73,459
|
)
|
(717,672
|
)
|
(413,380
|
)
|
(411,164
|
)
|
(14,303
|
)
|
||||||||
Administrative
expenses
|
(7,967
|
)
|
(1,428
|
)
|
(1,769
|
)
|
(8,185
|
)
|
(4,158
|
)
|
(5,949
|
)
|
(367
|
)
|
||||||||
Net
transfers
|
(734,508
|
)
|
250,181
|
7,135
|
(509,167
|
)
|
428,499
|
630,405
|
(11,517
|
)
|
||||||||||||
Net
increase (decrease) in net
|
||||||||||||||||||||||
assets
available for plan benefits
|
(55,130
|
)
|
457,514
|
463,042
|
1,269,459
|
1,409,628
|
2,643,594
|
58,194
|
||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at beginning of the year
|
10,087,661
|
1,549,450
|
2,257,925
|
9,908,122
|
4,672,453
|
6,706,526
|
433,808
|
|||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at end of the year
|
$
|
10,032,531
|
$
|
2,006,964
|
$
|
2,720,967
|
$
|
11,177,581
|
$
|
6,082,081
|
$
|
9,350,120
|
$
|
492,002
|
The
Lincoln National Life Insurance Company
|
|||||||||||||
Agents'
Savings and Profit-Sharing Plan
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
to Financial Statements (continued)
|
|||||||||||||
|
|||||||||||||
4.
Investment Options (continued)
|
|||||||||||||
The
detail of the changes in net assets available for plan benefits
by
investment option is as follows:
|
Investment
Options
|
||||||||||||||||||||||
December
31, 2004
|
|
14
|
|
15
|
|
16
|
|
17
|
|
18
|
|
19
|
|
20
|
||||||||
Investment
income:
|
||||||||||||||||||||||
Cash
dividends
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||
Interest
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Total
investment income
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Net
realized gain (loss) on sale and
|
||||||||||||||||||||||
distribution
of investments:
|
||||||||||||||||||||||
Common
stock
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Pooled
separate accounts
|
15,861
|
33,241
|
96,378
|
84,290
|
100,306
|
70,301
|
(72,288
|
)
|
||||||||||||||
Total
net realized gains (losses)
|
15,861
|
33,241
|
96,378
|
84,290
|
100,306
|
70,301
|
(72,288
|
)
|
||||||||||||||
Net
unrealized appreciation
|
||||||||||||||||||||||
(depreciation)
of investments
|
67,620
|
113,392
|
295,717
|
537,009
|
315,620
|
77,919
|
305,514
|
|||||||||||||||
Contributions:
|
||||||||||||||||||||||
Participant
|
122,416
|
160,835
|
229,911
|
352,392
|
150,485
|
63,352
|
136,142
|
|||||||||||||||
Employer
companies
|
31,944
|
45,509
|
66,604
|
99,622
|
42,459
|
17,056
|
40,541
|
|||||||||||||||
Total
contributions
|
154,360
|
206,344
|
296,515
|
452,014
|
192,944
|
80,408
|
176,683
|
|||||||||||||||
Transfers
to affiliated Plans
|
33,405
|
12,599
|
234,516
|
39,198
|
23,085
|
5,632
|
98,166
|
|||||||||||||||
Distributions
to participants
|
(95,828
|
)
|
(38,684
|
)
|
(123,031
|
)
|
(349,783
|
)
|
(140,610
|
)
|
(35,899
|
)
|
(224,214
|
)
|
||||||||
Administrative
expenses
|
(627
|
)
|
(981
|
)
|
(2,968
|
)
|
(3,091
|
)
|
(1,472
|
)
|
(934
|
)
|
(1,312
|
)
|
||||||||
Net
transfers
|
140,129
|
243,550
|
(156,924
|
)
|
1,450,616
|
653,881
|
123,294
|
1,111,652
|
||||||||||||||
Net
increase (decrease) in net
|
||||||||||||||||||||||
assets
available for plan benefits
|
314,920
|
569,461
|
640,203
|
2,210,253
|
1,143,754
|
320,721
|
1,394,201
|
|||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at beginning of the year
|
584,686
|
990,011
|
3,526,574
|
3,159,246
|
1,429,763
|
1,068,011
|
1,342,969
|
|||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at end of the year
|
$
|
899,606
|
$
|
1,559,472
|
$
|
4,166,777
|
$
|
5,369,499
|
$
|
2,573,517
|
$
|
1,388,732
|
$
|
2,737,170
|
||||||||
Investment
Options
|
||||||||||||||||||||||
December
31, 2004
|
21
|
|
|
22
|
|
|
23
|
|
|
24
|
|
|
Loans
|
|
||||||||
Investment
income:
|
||||||||||||||||||||||
Cash
dividends
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||||||
Interest
|
–
|
–
|
–
|
–
|
250,743
|
|||||||||||||||||
Total
investment income
|
–
|
–
|
–
|
–
|
250,743
|
|||||||||||||||||
Net
realized gain (loss) on sale and
|
||||||||||||||||||||||
distribution
of investments:
|
||||||||||||||||||||||
Common
stock
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||||
Pooled
separate accounts
|
29,076
|
147,930
|
39,823
|
48,356
|
–
|
|||||||||||||||||
Total
net realized gains (losses)
|
29,076
|
147,930
|
39,823
|
48,356
|
–
|
|||||||||||||||||
Net
unrealized appreciation
|
||||||||||||||||||||||
(depreciation)
of investments
|
235,544
|
223,675
|
(21,832
|
)
|
37,902
|
–
|
||||||||||||||||
Contributions:
|
||||||||||||||||||||||
Participant
|
200,906
|
212,549
|
27,387
|
78,624
|
–
|
|||||||||||||||||
Employer
companies
|
55,631
|
56,071
|
6,768
|
18,789
|
–
|
|||||||||||||||||
Total
contributions
|
256,537
|
268,620
|
34,155
|
97,413
|
–
|
|||||||||||||||||
Transfers
to affiliated plans
|
21,996
|
89,182
|
53,567
|
24,540
|
–
|
|||||||||||||||||
Distributions
to participants
|
(172,305
|
)
|
(136,161
|
)
|
(23,429
|
)
|
(22,550
|
)
|
(316,965
|
)
|
||||||||||||
Administrative
expenses
|
(1,347
|
)
|
(2,011
|
)
|
(346
|
)
|
(607
|
)
|
–
|
|||||||||||||
Net
transfers
|
174,640
|
175,250
|
(122,114
|
)
|
168,918
|
–
|
||||||||||||||||
Net
increase (decrease) in net
|
||||||||||||||||||||||
assets
available for plan benefits
|
544,141
|
766,485
|
(40,176
|
)
|
353,972
|
(66,222
|
)
|
|||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at beginning of the year
|
1,441,993
|
2,062,111
|
351,608
|
529,204
|
4,218,026
|
|||||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at end of the year
|
$
|
1,986,134
|
$
|
2,828,596
|
$
|
311,432
|
$
|
883,176
|
$
|
4,151,804
|
The
Lincoln National Life Insurance Company
|
|||||||||||||
Agents'
Savings and Profit-Sharing Plan
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
to Financial Statements (continued)
|
|||||||||||||
4.
Investment Options (continued)
|
|||||||||||||
The
detail of the changes in net assets available for plan benefits
by
investment option is as follows:
|
Investment
Options
|
||||||||||||||||||||||
December
31, 2003
|
Total
|
1
|
2
|
3
|
4
|
5
|
6
|
|||||||||||||||
Investment
income:
|
||||||||||||||||||||||
Cash
dividends
|
$
|
1,924,171
|
$
|
1,924,171
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||
Interest
|
914,085
|
15,311
|
622,789
|
–
|
–
|
–
|
–
|
|||||||||||||||
Total
investment income
|
2,838,256
|
1,939,482
|
622,789
|
–
|
–
|
–
|
–
|
|||||||||||||||
Net
realized gain (loss) on sale and
|
||||||||||||||||||||||
distribution
of investments:
|
||||||||||||||||||||||
Common
stock
|
1,563,498
|
1,563,498
|
–
|
|||||||||||||||||||
Pooled
separate accounts
|
(1,040,533
|
)
|
–
|
–
|
(86,860
|
)
|
(324,703
|
)
|
99,353
|
186,429
|
||||||||||||
Total
net realized gains (losses)
|
522,965
|
1,563,498
|
–
|
(86,860
|
)
|
(324,703
|
)
|
99,353
|
186,429
|
|||||||||||||
Net
unrealized appreciation
|
||||||||||||||||||||||
(depreciation)
of investments
|
29,055,510
|
11,125,039
|
–
|
2,867,561
|
2,607,152
|
(38,827
|
)
|
27,141
|
||||||||||||||
Contributions:
|
||||||||||||||||||||||
Participant
|
6,280,189
|
954,053
|
229,346
|
618,903
|
547,801
|
202,458
|
181,394
|
|||||||||||||||
Employer
companies
|
6,056,534
|
4,300,682
|
81,192
|
210,048
|
190,321
|
62,817
|
44,803
|
|||||||||||||||
Total
contributions
|
12,336,723
|
5,254,735
|
310,538
|
828,951
|
738,122
|
265,275
|
226,197
|
|||||||||||||||
Transfers
to affiliated plans
|
285,051
|
72,815
|
(225,925
|
)
|
(27,431
|
)
|
72,098
|
(85,843
|
)
|
16,781
|
||||||||||||
Distributions
to participants
|
(15,112,736
|
)
|
(3,938,718
|
)
|
(1,674,653
|
)
|
(690,935
|
)
|
(672,902
|
)
|
(1,906,570
|
)
|
(1,060,535
|
)
|
||||||||
Administrative
expenses
|
(103,179
|
)
|
(37,385
|
)
|
(11,496
|
)
|
(7,744
|
)
|
(5,938
|
)
|
(6,154
|
)
|
(2,038
|
)
|
||||||||
Net
transfers
|
–
|
(4,787,547
|
)
|
1,548,319
|
(89,927
|
)
|
360,326
|
(1,361,027
|
)
|
374,601
|
||||||||||||
Net
increase (decrease) in net
|
||||||||||||||||||||||
assets
available for plan benefits
|
29,822,590
|
11,191,919
|
569,572
|
2,793,615
|
2,774,155
|
(3,033,793
|
)
|
(231,424
|
)
|
|||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at beginning of the year
|
132,264,453
|
49,141,401
|
15,378,483
|
9,308,266
|
6,700,311
|
8,634,975
|
2,539,416
|
|||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at end of the year
|
$
|
162,087,043
|
$
|
60,333,320
|
$
|
15,948,055
|
$
|
12,101,881
|
$
|
9,474,466
|
$
|
5,601,182
|
$
|
2,307,992
|
||||||||
Investment
Options
|
||||||||||||||||||||||
December
31, 2003
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
|
11
|
|
|
12
|
|
|
13
|
|||
Investment
income:
|
||||||||||||||||||||||
Cash
dividends
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||
Interest
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Total
investment income
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Net
realized gain (loss) on sale and
|
||||||||||||||||||||||
distribution
of investments:
|
||||||||||||||||||||||
Common
stock
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Pooled
separate accounts
|
(505,088
|
)
|
12,908
|
212,775
|
(144,779
|
)
|
(102,761
|
)
|
22,254
|
17,868
|
||||||||||||
Total
net realized gains (losses)
|
(505,088
|
)
|
12,908
|
212,775
|
(144,779
|
)
|
(102,761
|
)
|
22,254
|
17,868
|
||||||||||||
Net
unrealized appreciation
|
||||||||||||||||||||||
(depreciation)
of investments
|
2,489,266
|
251,242
|
291,368
|
2,699,755
|
1,078,364
|
1,851,824
|
30,107
|
|||||||||||||||
Contributions:
|
||||||||||||||||||||||
Participant
|
726,921
|
145,412
|
133,667
|
619,840
|
429,409
|
396,354
|
36,302
|
|||||||||||||||
Employer
companies
|
247,494
|
49,839
|
44,696
|
203,487
|
140,182
|
139,205
|
13,290
|
|||||||||||||||
Total
contributions
|
974,415
|
195,251
|
178,363
|
823,327
|
569,591
|
535,559
|
49,592
|
|||||||||||||||
Transfers
to affiliated plans
|
49,433
|
54,428
|
86,123
|
141,515
|
(1,140
|
)
|
55,930
|
(2,816
|
)
|
|||||||||||||
Distributions
to participants
|
(1,053,523
|
)
|
(264,923
|
)
|
(394,941
|
)
|
(904,542
|
)
|
(410,144
|
)
|
(570,470
|
)
|
(126,688
|
)
|
||||||||
Administrative
expenses
|
(7,124
|
)
|
(1,140
|
)
|
(1,480
|
)
|
(6,280
|
)
|
(3,027
|
)
|
(3,912
|
)
|
(360
|
)
|
||||||||
Net
transfers
|
(467,065
|
)
|
38,391
|
569,299
|
(327,707
|
)
|
(79,799
|
)
|
512,117
|
84,261
|
||||||||||||
Net
increase (decrease) in net
|
||||||||||||||||||||||
assets
available for plan benefits
|
1,480,314
|
286,157
|
941,507
|
2,281,289
|
1,051,084
|
2,403,302
|
51,964
|
|||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at beginning of the year
|
8,607,347
|
1,263,293
|
1,316,418
|
7,626,833
|
3,621,369
|
4,303,224
|
381,844
|
|||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at end of the year
|
$
|
10,087,661
|
$
|
1,549,450
|
$
|
2,257,925
|
$
|
9,908,122
|
$
|
4,672,453
|
$
|
6,706,526
|
$
|
433,808
|
The
Lincoln National Life Insurance Company
|
||||||||||||||||||||||
Agents'
Savings and Profit-Sharing Plan
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Notes
to Financial Statements (continued)
|
||||||||||||||||||||||
4.
Investment Options (continued)
|
||||||||||||||||||||||
The
detail of the changes in net assets available for plan benefits
by
investment option is as follows:
|
||||||||||||||||||||||
Investment
Options
|
||||||||||||||||||||||
December
31, 2003
|
14
|
|
15
|
|
16
|
|
17
|
|
18
|
|
19
|
|
20
|
|||||||||
Investment
income:
|
||||||||||||||||||||||
Cash
dividends
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||
Interest
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Total
investment income
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Net
realized gain (loss) on sale and
|
||||||||||||||||||||||
distribution
of investments:
|
||||||||||||||||||||||
Common
stock
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Pooled
separate accounts
|
7,119
|
(6,874
|
)
|
(54,667
|
)
|
6,812
|
(171
|
)
|
(6,860
|
)
|
(340,337
|
)
|
||||||||||
Total
net realized gains (losses)
|
7,119
|
(6,874
|
)
|
(54,667
|
)
|
6,812
|
(171
|
)
|
(6,860
|
)
|
(340,337
|
)
|
||||||||||
Net
unrealized appreciation
|
||||||||||||||||||||||
(depreciation)
of investments
|
94,774
|
187,710
|
735,010
|
618,239
|
351,190
|
169,673
|
648,753
|
|||||||||||||||
Contributions:
|
||||||||||||||||||||||
Participant
|
68,137
|
75,269
|
138,688
|
196,536
|
102,623
|
33,513
|
137,349
|
|||||||||||||||
Employer
companies
|
16,468
|
24,366
|
45,675
|
65,512
|
34,251
|
10,930
|
40,651
|
|||||||||||||||
Total
contributions
|
84,605
|
99,635
|
184,363
|
262,048
|
136,874
|
44,443
|
178,000
|
|||||||||||||||
Transfers
to affiliated plans
|
28,712
|
(1,152
|
)
|
44,307
|
–
|
11,882
|
5,252
|
(4,398
|
)
|
|||||||||||||
Distribution
to participants
|
(52,635
|
)
|
(29,174
|
)
|
(265,152
|
)
|
(206,183
|
)
|
(116,579
|
)
|
(31,733
|
)
|
(236,552
|
)
|
||||||||
Administrative
expenses
|
(376
|
)
|
(536
|
)
|
(1,818
|
)
|
(1,716
|
)
|
(853
|
)
|
(411
|
)
|
(1,295
|
)
|
||||||||
Net
transfers
|
105,961
|
248,225
|
1,023,800
|
659,588
|
58,024
|
555,838
|
(432,214
|
)
|
||||||||||||||
Net
increase (decrease) in net
|
||||||||||||||||||||||
assets
available for plan benefits
|
268,160
|
497,834
|
1,665,843
|
1,338,788
|
440,367
|
736,202
|
(188,043
|
)
|
||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at beginning of the year
|
316,526
|
492,177
|
1,860,731
|
1,820,458
|
989,396
|
331,809
|
1,531,012
|
|||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at end of the year
|
$
|
584,686
|
$
|
990,011
|
$
|
3,526,574
|
$
|
3,159,246
|
$
|
1,429,763
|
$
|
1,068,011
|
$
|
1,342,969
|
||||||||
Investment
Options
|
||||||||||||||||||||||
December
31, 2003
|
21
|
|
|
22
|
|
|
23
|
|
|
24
|
|
|
Loans
|
|||||||||
Investment
income:
|
||||||||||||||||||||||
Cash
dividends
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||||||||
Interest
|
–
|
–
|
–
|
–
|
275,985
|
|||||||||||||||||
Total
investment income
|
–
|
–
|
–
|
–
|
275,985
|
|||||||||||||||||
Net
realized gain (loss) on sale and
|
||||||||||||||||||||||
distribution
of investments:
|
||||||||||||||||||||||
Common
stock
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||||
Pooled
separate accounts
|
(91,840
|
)
|
35,349
|
5,706
|
17,834
|
–
|
||||||||||||||||
Total
net realized gains (losses)
|
(91,840
|
)
|
35,349
|
5,706
|
17,834
|
–
|
||||||||||||||||
Net
unrealized appreciation
|
||||||||||||||||||||||
(depreciation)
of investments
|
386,369
|
422,749
|
62,822
|
98,229
|
–
|
|||||||||||||||||
Contributions:
|
||||||||||||||||||||||
Participant
|
157,349
|
112,935
|
15,485
|
20,445
|
–
|
|||||||||||||||||
Employer
companies
|
50,064
|
29,995
|
4,594
|
5,972
|
–
|
|||||||||||||||||
Total
contributions
|
207,413
|
142,930
|
20,079
|
26,417
|
–
|
|||||||||||||||||
Transfers
to affiliated plans
|
(262
|
)
|
3,783
|
–
|
(9,041
|
)
|
–
|
|||||||||||||||
Distributions
to participants
|
(140,046
|
)
|
(136,746
|
)
|
(19,714
|
)
|
(1,298
|
)
|
(207,380
|
)
|
||||||||||||
Administrative
expenses
|
(930
|
)
|
(846
|
)
|
(145
|
)
|
(175
|
)
|
–
|
|||||||||||||
Net
transfers
|
11,331
|
915,975
|
189,490
|
289,740
|
–
|
|||||||||||||||||
Net
increase (decrease) in net
|
||||||||||||||||||||||
assets
available for plan benefits
|
372,035
|
1,383,194
|
258,238
|
421,706
|
68,605
|
|||||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at beginning of the year
|
1,069,958
|
678,917
|
93,370
|
107,498
|
4,149,421
|
|||||||||||||||||
Net
assets available for plan
|
||||||||||||||||||||||
benefits
at end of the year
|
$
|
1,441,993
|
$
|
2,062,111
|
$
|
351,608
|
$
|
529,204
|
$
|
4,218,026
|
The
Lincoln National Life Insurance Company
|
|
Agents'
Savings and Profit‑Sharing Plan
|
|
Notes
to Financial Statements (continued)
|
|
4.
Investment Options (continued)
|
|
Information
with respect to investment options is as follows:
|
|
Option
|
Description
of Investment Option
|
1
|
LNC
Common Stock Account, which invests exclusively in the stock
of LNC.
However, some funds may be invested in the Wells Fargo Bank Short-Term
Investment Account until the LNC stock can be
purchased.
|
2
|
Guaranteed
Account, which invests in investment contracts underwritten by
Lincoln
Life. The account’s balances are backed by the general assets of Lincoln
Life.
|
3
|
Core
Equity Account (SA#11), which seeks to buy large capitalization
stocks of
well-established companies with the objective of long-term
appreciation.
|
4
|
Medium
Capitalization Equity Account (SA#17), which invests in stocks
of
medium-sized companies with the objective of maximum long-term
total
return.
|
5
|
Short‑Term
Account (SA#14), which invests in high-quality money market securities
with the objective of maximizing interest earnings while maintaining
principal.
|
6
|
Government/Corporate
Bond Account (SA#12), which invests primarily in U.S. government
and
high-quality corporate bonds and securities.
|
7
|
Large
Capitalization Equity Account (SA#23), which invests primarily
in stocks
of large companies that have the potential to grow 50% within
18 months
from the date of purchase.
|
8
|
Balanced
Account (SA#21), which invests in stocks, bonds and money market
instruments with the objective to maximize long-term total returns
with a
moderate level of risk.
|
9
|
High
Yield Bond Account (SA#20), which invests primarily in
below‑investment‑grade bonds, providing higher rates of return to
compensate for higher risk.
|
10
|
Small
Capitalization Equity Account (SA#24), which invests primarily
in the
stock of new, rapid growth companies.
|
11
|
Value
Equity Account (SA#28), which invests primarily in large capitalization
stocks of conservative companies that are industry
leaders.
|
The
Lincoln National Life Insurance Company
|
|
Agents'
Savings and Profit‑Sharing Plan
|
|
Notes
to Financial Statements (continued)
|
|
4.
Investment Options (continued)
|
|
12
|
International
Equity Account (SA#22), which invests primarily in stocks of
non‑United
States companies.
|
13
|
Conservative
Balanced Account (SA#30), which invests in stocks, bonds and
money market
instruments to maximize long-term total earnings with a conservative
level
of risk.
|
14
|
Aggressive
Balanced Account (SA#32), which invests in stocks, bonds and
money market
instruments to maximize long-term total return with an aggressive
level of
risk.
|
15
|
Delaware
Value Account (SA#61), which invests in large capitalization
companies
that have long-term capital appreciation potential.
|
16
|
Scudder
VIT Equity 500 Index Account (SA#27), which seeks to replicate
the total
return of the S&P 500.
|
17
|
Fidelity
VIP Contrafund (SA#35), which seeks capital appreciation by investing
in
primarily securities of companies whose value is not fully recognized
by
the market.
|
18
|
Neuberger-Berman
AMT Regency Account (SA#38), which seeks capital growth by investing
mainly in common stocks of mid-capitalization
companies.
|
19
|
Social
Awareness Account (SA#33), which seeks capital growth and social
responsibility by investing in the Lincoln National Social Awareness
Portfolio.
|
20
|
American
Funds New Perspective Account (SA#34),
which invests primarily in common stocks, convertibles, preferred
stocks,
bonds and cash to provide long-term growth through investments
all over
the world.
|
21
|
Neuberger-Berman
AMT Mid-Cap Growth Account (SA#37), which seeks capital appreciation
using
a growth-oriented investment approach.
|
22
|
Scudder
VIT Small Cap Index Account, which seeks to reflect Russell 2000
performance by investing in the Small Cap Index
Portfolio.
|
23
|
Janus
Aspen Growth Account (SA#70), which seeks long-term growth of
capital in a
manner consistent with the preservation of capital.
|
24
|
Fidelity
VIP Overseas Account (SA#59), which seeks long-term growth of
capital by
investing mainly in foreign securities.
|
The
Lincoln National Life Insurance Company
|
|
Agents'
Savings and Profit‑Sharing Plan
|
|
Notes
to Financial Statements (continued)
|
|
4.
Investment Options (continued)
|
|
Investment
options 3 through 24 are invested in pooled separate accounts
of Lincoln
Life through a group annuity contract issued by Lincoln Life.
|
|
5.
Income Tax Status
|
|
The
Plan has received a determination letter from the Internal Revenue
Service
dated April 30, 2004, stating that the Plan is qualified under
Section
401(a) of the Internal Revenue Code (the “Code”) and, therefore, the
related trust is exempt from taxation. To maintain its qualification,
the
Plan must operate in conformity with the Code. The Plan Administrator
believes the Plan is being operated in compliance with the applicable
requirements of the Code and, therefore, believes that the plan
is
qualified and the related trust is tax exempt. The Plan Sponsor
has
indicated that it will take the necessary steps, if any, to maintain
the
Plan's qualified status.
|
|
6.
Tax Implications to Participants
|
|
There
are no income tax consequences to participants arising from their
pre‑tax
contributions, the Employer's contributions, and income earned
in the Plan
until actual distribution or withdrawal from the Plan.
|
|
7.
Transactions with Parties-in-Interest
|
|
The Plan
has investments in common stock of LNC and in pooled separate
accounts and
investment contracts with Lincoln Life. Lincoln Life charges
the Plan for
certain administrative expenses including trustee and audit fees.
Total
administrative expenses charged were $168,180, $128,210, and
$103,179 in
2005, 2004 and 2003, respectively.
|
|
8.
Concentrations of Credit Risks and Market
Risks
|
|
The
Plan has investments in common stock of LNC, pooled separate
accounts, and
unallocated investment contracts with Lincoln Life of $53,923,715,
$108,129,318, and $14,904,976, respectively, at December 31,
2005 (29.5%,
59.2% and 8.2% of net assets, respectively). LNC and Lincoln
Life operate
predominately in the insurance and investment management
industries.
|
|
The
Plan invests in various investment securities. Investment securities
are
exposed to various risks including, but not limited to, interest
rate,
market and credit risks. Due to the level of risk associated
with certain
investment securities, it is at least reasonably possible that
changes in
the values of investments will occur in the near term and that
such
changes could materially affect participants' account balances
and the
amounts reported in the statements of net assets available for
plan
benefits.
|
|
The
Lincoln National Life Insurance Company
|
|
Agents'
Savings and Profit‑Sharing Plan
|
|
Notes
to Financial Statements (continued)
|
|
9.
Subsequent Events
|
|
On
Monday, October 10, 2005, Lincoln National Corporation, the parent
company
of the Lincoln Financial Group of companies and Jefferson Pilot
Corporation, the parent company of the Jefferson Pilot Financial
Group of
companies announced a definitive merger agreement. The merger
will be
effective April 3, 2006, the merged company will operate under
the brand
name Lincoln Financial Group.
|
|
Effective
March 1, 2006, the following two new Investment Options will
be available
for investment: The American Funds International Account (SA
#54) and The
BlackRock Legacy Account (SA #81). In addition, as of that same
date, the
Janus Aspen Series Large Cap Growth Account (SA #70) and the
Fidelity VIP
Overseas Account (SA #59) will be closed. On March 3, 2006, any
assets
remaining in the Janus Aspen Series Large Cap Growth Account
will be
automatically transferred to The BlackRock Legacy Account and
any
remaining assets in the Fidelity VIP Overseas Account will be
transferred
to the American Funds International Account.
|
|
The
Lincoln National Life Insurance Company
|
||||||
Agents'
Savings and Profit-Sharing Plan
|
||||||
|
|
|
|
|
|
|
Plan
Number: 006
|
||||||
EIN:
35-0472300
|
||||||
|
|
|
|
|
|
|
Schedule
H, Line 4i – Schedule of Assets (Held At End of Year)
|
||||||
|
|
|
|
|
|
|
December
31, 2005
|
||||||
(b)
|
(c)
|
(d)
|
|
(e)
|
||
|
|
Description
of Investment
|
|
|
|
|
|
|
Including
Maturity Date
|
|
|
|
|
Identity
of Issue, Borrower,
|
Rate
of Interest,
|
|
|
Current
|
||
Lessor
or Similar Party
|
Par
or Maturity Value
|
Cost
|
|
Value
|
||
*
Common stock account:
|
||||||
Lincoln
National Corporation common stock
|
1,016,853
|
shares
|
**
|
$
53,923,715
|
||
Wells
Fargo Bank Short-Term Investment Account
|
800,619
|
par
value
|
**
|
800,619
|
||
|
54,724,334
|
|||||
*
Pooled separate accounts--
|
|
|
||||
The
Lincoln National Life Insurance
|
|
|
||||
Company
Separate Accounts:
|
|
|||||
Core
Equity Account
|
824,597.484
|
participation
units
|
**
|
12,233,234
|
||
Medium
Capitalization Equity Account
|
734,938.419
|
participation
units
|
**
|
10,112,973
|
||
Short-Term
Account
|
2,149,801.047
|
participation
units
|
**
|
8,120,658
|
||
Government/
Corporate Bond Account
|
354,494.503
|
participation
units
|
**
|
3,170,138
|
||
Large
Capitalization Equity Account
|
1,115,245.939
|
participation
units
|
**
|
10,643,015
|
||
Balanced
Account
|
339,718.660
|
participation
units
|
**
|
2,761,505
|
||
High
Yield Bond Account
|
842,271.585
|
participation
units
|
**
|
3,312,065
|
||
Small
Capitalization Equity Account
|
1,178,821.391
|
participation
units
|
**
|
9,818,639
|
||
Value
Equity Account
|
2,108,301.523
|
participation
units
|
**
|
5,422,130
|
||
International
Equity Account
|
1,098,341.429
|
participation
units
|
**
|
10,726,842
|
||
Conservative
Balanced Account
|
349,127.833
|
participation
units
|
**
|
768,116
|
||
Aggressive
Balanced Account
|
389,545.026
|
participation
units
|
**
|
989,016
|
||
Delaware
Growth and Income Account
|
1,156,905.944
|
participation
units
|
**
|
2,065,540
|
||
Scudder
VIT Equity 500 Index Account
|
3,616,416.234
|
participation
units
|
**
|
3,793,259
|
||
Fidelity
VIP Contrafund
|
5,256,435.601
|
participation
units
|
**
|
7,665,460
|
||
Neuberger-Berman
AMT Regency Account
|
2,056,425.337
|
participation
units
|
**
|
3,281,027
|
||
Social
Awareness Account
|
1,563,453.979
|
participation
units
|
**
|
1,856,133
|
||
American
Funds New Perspective
|
3,412,657.312
|
participation
units
|
**
|
3,624,242
|
||
Neuberger-Berman
Mid-Cap Growth Account
|
2,471,345.139
|
participation
units
|
**
|
3,002,684
|
||
Scudder
VIT Small Cap Index Account
|
1,621,173.104
|
participation
units
|
**
|
2,627,273
|
||
Janus
Aspen Growth Account
|
27,422.947
|
participation
units
|
**
|
268,526
|
||
Fidelity
VIP Overseas Account
|
128,967.468
|
participation
units
|
**
|
1,866,843
|
||
108,129,318
|
||||||
*
Investment contracts--
|
||||||
The
Lincoln National Life
|
||||||
Insurance
Company (Guaranteed Account)
|
4.00%
interest rate
|
**
|
14,904,972
|
|||
|
||||||
Participant
loans
|
Various
loans at interest rates
|
|||||
varying
from 5.0% to 10.75%.
|
-
|
3,965,728
|
||||
$181,724,352
|
||||||
*
Indicates party-in-interest to the Plan.
|
||||||
**
Indicates a participant-directed account. The cost disclosure is
not
required.
|
SIGNATURE
|
|
THE
PLAN: Pursuant to the requirements of the Securities Exchange Act
of 1934,
the Administrator of The Lincoln National Life Insurance Company
Agents'
Savings and Profit-Sharing Plan has duly caused this annual report
to be
signed on its behalf by the undersigned hereunto duly
authorized.
|
|
Lincoln
National Life Insurance Company Agents' Savings and Profit-Sharing
Plan
|
|
By:
Stephen
J. Dover
|
|
Date:
March 31, 2006
|
Stephen
J. Dover
|
Plan
Administrator
|