SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT
Pursuant to Section 15(d) of the Securities Exchange Act of 1934
For the fiscal year ended December 31, 2001
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY AGENTS'
SAVINGS AND PROFIT-SHARING PLAN
(Full title of the Plan)
[Current Registration Number 33-04711]
Lincoln National Corporation
Centre Square West
1500 Market Street, Suite 3900
Philadelphia, PA 19102
(Name of Issuer and principal executive office)
Form 11-K
The Lincoln National Life Insurance Company Agents'
Savings and Profit-Sharing Plan
TABLE OF CONTENTS
Facing Sheet
Financial Statements
Signature
Financial Statements
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
AGENTS' SAVINGS AND PROFIT-SHARING PLAN
Years ended December 31, 2001, 2000 and 1999 with Report of Independent Auditors
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
AGENTS' SAVINGS AND PROFIT-SHARING PLAN
FINANCIAL STATEMENTS
Years ended December 31, 2001, 2000, and 1999
CONTENTS
Report of Independent Auditors............................................1
Audited Financial Statements
Statements of Net Assets Available for Plan Benefits......................2
Statements of Changes in Net Assets Available for Plan Benefits...........3
Notes to Financial Statements.............................................4
Schedules
Schedule H, Line 4i--Schedule of Assets (Held At End of Year)............20
Schedule H, Line 4j--Schedule of Reportable Transactions.................21
Report of Independent Auditors
Lincoln National Corporation Plan Administrator
Lincoln National Corporation
We have audited the accompanying statements of net assets available for plan
benefits of The Lincoln National Life Insurance Company Agents' Savings and
Profit-Sharing Plan as of December 31, 2001 and 2000, and the related statements
of changes in net assets available for plan benefits for each of the three years
in the period ended December 31, 2001. 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 auditing standards generally accepted
in the 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. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as 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 plan benefits of the Plan at
December 31, 2001 and 2000, and the changes in its net assets available for plan
benefits for each of the three years in the period ended December 31, 2001, in
conformity with accounting principles generally accepted in the United States.
Our audits were made for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
(held at end of year) as of December 31, 2001, and reportable transactions for
the year then ended, are presented for purpose of additional analysis and are
not a required part of the financial statements but are 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. These supplemental schedules are the responsibility of the Plan's
management. The supplemental schedules have been subjected to the auditing
procedures applied in our audits of the financial statements and, in our
opinion, are fairly stated in all material respects in relation to the financial
statements taken as a whole.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
March 25, 2002
1
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Statements of Net Assets Available for Plan Benefits
DECEMBER 31
2001 2000
------------- -------------
Assets
Investments:
Common stock--Lincoln National Corporation
(cost: 2001--$49,395,098; 2000--$45,873,945) $ 79,310,536 $ 78,539,365
Wells Fargo Bank Short-Term Investment Fund 1,550,053 2,234,371
Pooled separate accounts--The Lincoln National
Life Insurance Company Separate Accounts
(cost: 2001--$61,386,569; 2000--$64,616,191) 74,348,874 91,271,829
Investment contracts--The Lincoln National
Life Insurance Company 12,875,716 13,019,228
Participant loans 4,853,048 5,623,043
------------- -------------
172,938,227 190,687,836
Accrued interest receivable 3,965 -
Cash and invested cash (deficit) 16,030 (200,272)
Net pending trades 35,535 -
Contributions receivable from Employer companies 1,710,548 10,433,284
------------- -------------
Net assets available for plan benefits $ 174,704,305 $ 200,920,848
============= =============
See accompanying notes.
2
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
2001 2000 1999
------------- ------------- -------------
Investment income:
Cash dividends--Lincoln National Corporation $ 2,023,000 $ 2,028,687 $ 1,687,397
Interest:
The Lincoln National Life Insurance Company 871,198 933,730 824,582
Other 432,431 499,724 495,956
------------- ------------- -------------
1,303,629 1,433,454 1,320,538
------------- ------------- -------------
3,326,629 3,462,141 3,007,935
Net realized gain (loss) on sale and distribution
of investments:
Common stock--Lincoln National Corporation 4,871,991 5,437,923 6,821,567
Pooled separate accounts--The Lincoln National
Life Insurance Company Separate Accounts (626,764) 5,757,246 5,564,689
------------- ------------- -------------
4,245,227 11,195,169 12,386,256
Net unrealized (depreciation)
appreciation of investments (16,443,315) (1,757,421) 3,941,598
Contributions:
Participants 6,244,407 9,893,688 12,044,177
Employer companies
(net of forfeitures: 2001--$150,588;
2000--$24,871 and 1999--$13,076) 1,756,656 11,852,039 5,829,738
------------- ------------- -------------
8,001,063 21,745,727 17,873,915
Transfers to affiliated plans (9,410,752) - -
Distributions to participants (15,811,537) (11,536,259) (14,645,718)
Administrative expenses (123,858) (96,034) (107,948)
------------- ------------- -------------
Net (decrease) increase in
net assets available for plan benefits (26,216,543) 23,013,323 22,456,038
Net assets available for plan benefits
at beginning of the year 200,920,848 177,907,525 155,451,487
------------- ------------- -------------
Net assets available for plan benefits
at end of the year $ 174,704,305 $ 200,920,848 $ 177,907,525
============= ============= =============
See accompanying notes.
3
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements
December 31, 2001
1. SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
The investment in Lincoln National Corporation ("LNC") common stock is valued at
the last reported sales price per the national securities exchange on the last
business day of the year.
The Wells Fargo Bank Short-Term Investment Fund is valued at cost which
approximates fair value.
The fair value of participation units in pooled separate accounts is 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.
USE OF ESTIMATES
Preparation of financial statements in conformity with accounting principles
generally accepted in the United States 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
agents of Lincoln Life and agents and employees of Sagemark Consulting, Inc.
("Sagemark") who are employed by Lincoln Life. Any person who is a full-time
agent of Lincoln Life or is a former employee of Sagemark currently employed by
Lincoln Life is eligible to enroll in the Plan. A participant may make pre-tax
contributions at a rate of at least 1%, but not more than 15% of eligible
earnings, up to a maximum annual amount as determined and adjusted annually by
the Internal Revenue Service ("IRS").
During 2001, Plan assets relating to the former employees of Sagemark were
transferred into another affiliated Plan of Lincoln Life, in the amount of
$9,410,752.
Participants direct the Plan to invest their contributions and the guaranteed
Employer contributions in any combination of the investment options as described
in Note 4. Discretionary Employer contributions are invested in the LNC Common
Stock Fund. Participants can direct the investment of the discretionary Employer
contributions, but only after the contributions have been in the Plan for two
years following the date the last contribution for the Plan year was
contributed.
4
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
Employer contributions to the Plan are based on an amount equal to a
participant's contributions, not to exceed 6% of eligible earnings, multiplied
by a percentage, ranging from 50% to 150%, which varies based on LNC's operating
income. The Employer match on eligible participants' contributions during their
first year of employment is limited to a maximum of 50%. The Board of Directors
of Lincoln Life approved a provision that provided an additional match up to 50%
for the 2000 Plan year based on the Company's achieving a certain level of
earnings over the three-year period from 1998 through 2000, to be paid in 2001.
During 2000, the Employer contribution to the Plan matched 200% (150% maximum
discretionary match plus additional 50% special match) of participant
contributions up to 6% of eligible earnings.
Participants' contributions are fully vested. 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%
The Employer has the right to discontinue contributions at any time and
terminate the Plan. In the event of termination of the Plan, all amounts
allocated to participants' accounts shall become vested.
The Plan allows 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 haven't been in the
Plan for two full years, less the highest outstanding loan balance in the
previous twelve month period.
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 value of the participant's vested interest in his
or her account, or annual installments over a five-year period. 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 $5,000 are immediately distributable under the terms of the
Plan, without the Participant's consent, unless a timely election of rollover to
an IRA or another qualified plan has been made.
Each participant's account is credited with the participant's contributions,
matching contributions from the Employer and allocations of Plan earnings, and
is charged with an allocation of administrative expenses. Allocations are based
on participant account balances, as defined. The benefit to which a participant
is entitled is the benefit that can be provided from the participant's vested
account. Forfeited non-vested amounts are used to reduce future Employer
contributions.
5
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, 2001 DECEMBER 31, 2000
---------------------------- ----------------------------
NUMBER OF NUMBER OF
SHARES, UNITS FAIR SHARES, UNITS FAIR
OR PAR VALUE VALUE OR PAR VALUE VALUE
-------------- ------------- -------------- -------------
QUOTED MARKET VALUES:
Common stock--LNC 1,632,912 $ 79,310,536* 1,660,013 $ 78,539,365*
Pooled separate account investment
contracts underwritten by Lincoln Life:
Government Bond Fund - - 257,525.826 497,171
Core Equity Fund 1,042,478.322 12,954,461* 1,155,367.432 16,246,966*
Medium Capitialization Equity Fund 850,458.860 9,954,621* 906,700.415 15,885,307*
Short-Term Fund 2,539,094.322 9,050,602* 1,939,132.104 6,634,221
Government/Corporate Bond Fund 240,565.401 1,666,926 165,954.947 1,051,874
Large Capitalization Equity Fund 1,312,128.741 12,164,614* 1,422,163.101 16,792,278*
Balanced Fund 232,236.514 1,517,828 254,007.480 1,749,029
High Yield Bond Fund 488,623.323 1,239,344 567,058.417 1,464,393
Small Capitalization Equity Fund 1,437,032.033 9,168,408* 1,596,788.029 12,198,448*
Value Equity Fund 1,852,637.180 3,940,189 1,873,246.634 4,200,255
International Equity Fund 790,992.900 4,401,718 913,942.872 5,664,550
Conservative Balanced Fund 82,609.176 145,301 52,987.871 90,099
Aggressive Balanced Fund 185,944.483 365,492 30,066.095 63,818
Delaware Growth and Income Fund 281,949.398 447,256 80,413.940 136,781
Deutsche VIT Equity 500 Index Fund 1,865,979.358 1,714,089 602,473.830 631,141
Fidelity VIP Contrafund 1,320,387.520 1,236,279 797,371.635 842,492
Janus Fund - - 1,350,095.553 2,722,037
Neuberger Berman AMT Regency 970,815.564 935,769 431,397.903 440,072
Social Awareness Fund 234,290.682 216,531 56,370.348 57,667
T Rowe Price International
Equity Fund - - 519,929.570 682,160
Janus Aspen Series Worldwide
Growth Fund 1,822,238.647 1,711,447 1,448,310.536 1,756,326
Delaware Global Bond Fund - - 30,319.549 34,537
Neuberger Berman Mid-Cap
Growth Fund 1,056,334.289 1,078,517 919,000.791 1,247,036
Deutsche VIT Small Cap Index Fund 384,835.126 439,482 163,472.034 183,171
------------ ------------
Total segregated investment accounts 74,348,874 91,271,829
CONTRACT VALUE:
Investment contracts
underwritten by Lincoln Life 12,875,716 12,875,716* 13,019,228 13,019,228*
ESTIMATED VALUE:
Wells Fargo Bank short-term
investment fund 1,550,053 1,550,053 2,234,371 2,234,371
Participants loans 4,853,048 4,853,048 5,623,043 5,623,043
------------ ------------
Total investments $172,938,227 $190,687,836
============ ============
* Investments that represent 5% or more of the fair value of net assets
available for benefits as of the indicated date.
6
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
2001 2000 1999
------------ ------------ ------------
Common stock
Proceeds from disposition of stock $ 10,870,074 $ 11,119,267 $ 11,207,528
Cost of stock disposed 5,998,083 5,681,344 4,385,961
------------ ------------ ------------
Net realized gain on sale
and distribution of common stock $ 4,871,991 $ 5,437,923 $ 6,821,567
============ ============ ============
POOLED SEPARATE ACCOUNTS
Proceeds from disposition of units $ 49,062,442 $ 40,023,820 $ 42,965,562
Cost of units disposed 49,689,206 34,266,574 37,400,873
------------ ------------ ------------
Net realized (loss) gain on sale
and distribution of pooled separate accounts $ (626,764) $ 5,757,246 $ 5,564,689
============ ============ ============
The net change in unrealized (depreciation) appreciation of investments in total
and by investment classification as determined by quoted market price is
summarized as follows:
YEAR ENDED DECEMBER 31
2001 2000 1999
------------ ------------ ------------
Fair value in excess of cost:
At beginning of the year $ 59,321,062 $ 61,078,483 $ 57,136,885
At end of the year 42,877,747 59,321,062 61,078,483
------------ ------------ ------------
Change in net unrealized
(depreciation) appreciation of investments $(16,443,315) $ (1,757,421) $ 3,941,598
============ ============ ============
Common stock $ (2,749,982) $ 10,023,055 $ (8,408,405)
Pooled separate accounts (13,693,333) (11,780,476) 12,350,003
------------ ------------ ------------
Change in net unrealized
(depreciation) appreciation of investments $(16,443,315) $ (1,757,421) $ 3,941,598
============ ============ ============
The investment contracts (Guaranteed Fund) earned an average interest rate of
approximately 5.95%, 6.26% and 6.22% in 2001, 2000 and 1999 respectively. The
credited interest rates for new contributions, which approximate the current
market rate, were 5.50% and 6.75% at December 31, 2001 and 2000, 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 were 5.50% and 6.25% at December 31, 2001 and 2000, respectively,
and are determined based upon the performance of the Lincoln Life's general
account. The credited interest rates change at least quarterly. The minimum
guaranteed rate is 4.50% for the first 5 contract years, 4.00% for years 6-10
and 3.50% following year 10. The guarantee is based on Lincoln Life's ability to
meet its financial obligations from the general assets of Lincoln Life. The fair
value of the investment contracts approximates contract value.
7
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, 2001 Total 1 2 3 4 5 6
-----------------------------------------------------------------------------------------------
Assets
Investments:
Common stock $ 79,310,536 $ 79,310,536 $ - $ - $ - $ - $ -
Short-term investment fund 1,550,053 1,550,053 - - - - -
Pooled separate accounts 74,348,874 - - - 12,954,461 9,954,621 9,050,602
Investment contracts 12,875,716 - - 12,875,716 - - -
Participant loans 4,853,048 - - - - - -
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total investments 172,938,227 80,860,589 - 12,875,716 12,954,461 9,954,621 9,050,602
Accrued interest receivable 3,965 3,965 - - - - -
Cash and invested cash (deficit) 16,030 (9) - - - - -
Net Pending Trades--Pooled
Separate accounts (payable) 23,909 - - - (17,443) 8,210 77,889
Net Pending Trades--
Investment contracts 11,626 - - 11,626 - - -
Contributions receivable from
Employer companies 1,710,548 1,710,548 - - - - -
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net assets available for
Plan benefits $174,704,305 $ 82,575,093 $ - $ 12,887,342 $ 12,937,018 $ 9,962,831 $ 9,128,491
============ ============ ============ ============ ============ ============ ============
INVESTMENT OPTIONS
------------------
December 31, 2001 7 8 9 10 11 12 13
-----------------------------------------------------------------------------------------------
Assets
Investments:
Common stock $ - $ - $ - $ - $ - $ - $ -
Short-term investment fund - - - - - - -
Pooled separate accounts 1,666,926 12,164,614 1,517,828 1,239,344 9,168,408 3,940,189 4,401,717
Investment contracts - - - - - - -
Participant loans - - - - - - -
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total investments 1,666,926 12,164,614 1,517,828 1,239,344 9,168,408 3,940,189 4,401,717
Accrued interest receivable - - - - - - -
Cash and invested cash (deficit) - - - - - - -
Net Pending Trades--Pooled
Separate accounts (payable) 427 (7,318) (48,396) 858 (14,245) (8,721) 7,572
Net Pending Trades--
Investment contracts - - - - - - -
Contributions receivable from
Employer companies - - - - - - -
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net assets available for
Plan benefits $ 1,667,353 $ 12,157,296 $ 1,469,432 $ 1,240,202 $ 9,154,163 $ 3,931,468 $ 4,409,289
============ ============ ============ ============ ============ ============ ============
8
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 net assets available for plan benefits by investment option is
as follows:
INVESTMENT OPTIONS
------------------
December 31, 2001 14 15 16 17 18 19 20
-----------------------------------------------------------------------------------------
Assets
Investments:
Common stock $ - $ - $ - $ - $ - $ - $ -
Short-term investment fund - - - - - - -
Pooled separate accounts 145,301 365,493 447,256 1,714,089 1,236,279 - 935,769
Investment contracts - - - - - - -
Participant loans - - - - - - -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investments 145,301 365,493 447,256 1,714,089 1,236,279 - 935,769
Accrued interest receivable - - - - - - -
Cash and invested cash (deficit) - - - - - - -
Net Pending Trades--Pooled
Separate accounts (payable) 37 95 (3,659) 632 534 - 441
Net Pending Trades--
Investment Contracts - - - - - - -
Contributions receivable from
Employer companies - - - - - - -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net assets available for
Plan benefits $ 145,338 $ 365,588 $ 443,597 $ 1,714,721 $ 1,236,813 $ - $ 936,210
=========== =========== =========== =========== =========== =========== ===========
INVESTMENT OPTIONS
------------------
December 31, 2001 21 22 23 24 25 26 Loans
-----------------------------------------------------------------------------------------
Assets
Investments:
Common stock $ - $ - $ - $ - $ - $ - $ -
Short-term investment fund - - - - - - -
Pooled separate accounts 216,531 1,711,447 1,078,517 439,482 -
Investment contracts - - - - - - -
Participant loans - - - - - - 4,853,048
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investments 216,531 - 1,711,447 - 1,078,517 439,482 4,853,048
Accrued interest receivable - - - - - - -
Cash and invested cash (deficit) - - - - - - 16,039
Net Pending Trades--Pooled
Separate accounts (payable) (3,831) - 628 - 10,697 19,502 -
Net Pending Trades--
Investment Contracts - - - - - - -
Contributions receivable from
Employer companies - - - - - - -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net assets available for
Plan benefits $ 212,700 $ - $ 1,712,075 $ - $ 1,089,214 $ 458,984 $ 4,869,087
=========== =========== =========== =========== =========== =========== ===========
9
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, 2000 Total 1 2 3 4 5 6
---------------------------------------------------------------------------------------------------
Assets
Investments:
Common stock $ 78,539,365 $ 78,539,365 $ - $ - $ - $ - $ -
Short-term investment fund 2,234,371 2,234,371 - - - - -
Pooled separate accounts 91,271,829 - 497,171 - 16,246,966 15,885,307 6,634,221
Investment contracts 13,019,228 - - 13,019,228 - - -
Participant loans 5,623,043 - - - - - -
------------ ------------- ----------- ------------- ------------- ----------- -------------
Total investments 190,687,836 80,773,736 497,171 13,019,228 16,246,966 15,885,307 6,634,221
Cash and invested cash (deficit) (200,272) 10,751 (1,273) (3,976) (25,470) (34,313) (55,962)
Contributions receivable from
Employer companies 10,433,284 10,433,284 - - - - -
------------ ------------- ----------- ------------- ------------- ----------- -------------
Net assets available for
Plan benefits $200,920,848 $ 91,217,771 $ 495,898 $ 13,015,252 $ 16,221,496 $15,850,994 $ 6,578,259
============ ============= =========== ============= ============= =========== =============
INVESTMENT OPTIONS
------------------
December 31, 2000 7 8 9 10 11 12 13
--------------------------------------------------------------------------------------------------
Assets
Investments:
Common stock $ - $ - $ - $ - $ - $ - $ -
Short-term investment fund - - - - - - -
Pooled separate accounts 1,051,874 16,792,278 1,749,030 1,464,393 12,198,448 4,200,255 5,664,549
Investment contracts - - - - - - -
Participant loans - - - - - - -
------------ ------------- ----------- ------------- ------------- ----------- -------------
Total investments 1,051,874 16,792,278 1,749,030 1,464,393 12,198,448 4,200,255 5,664,549
Cash and invested cash (deficit) (3,080) (36,258) (4,226) (9,880) (28,955) (17,589) (16,039)
Contributions receivable from
Employer companies - - - - - - -
------------ ------------- ----------- ------------- ------------- ----------- -------------
Net assets available for
Plan benefits $ 1,048,794 $ 16,756,020 $ 1,744,804 $ 1,454,513 $ 12,169,493 $ 4,182,666 $ 5,648,510
============ ============= =========== ============= ============= =========== =============
10
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 net assets available for plan benefits by investment option is
as follows:
INVESTMENT OPTIONS
------------------
December 31, 2000 14 15 16 17 18 19 20
-----------------------------------------------------------------------------------------
Assets
Investments:
Common stock $ - $ - $ - $ - $ - $ - $ -
Short-term investment fund - - - - - - -
Pooled separate accounts 90,099 63,818 136,781 631,141 842,492 2,722,037 440,072
Investment contracts - - - - - - -
Participant loans - - - - - - -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investments 90,099 63,818 136,781 631,141 842,492 2,722,037 440,072
Cash and invested cash (deficit) (25) (922) 41,912 (1,212) (1,141) (7,930) (1,610)
Contributions receivable from
Employer companies - - - - - - -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net assets available for
Plan benefits $ 90,074 $ 62,896 $ 178,693 $ 629,929 $ 841,351 $ 2,714,107 $ 438,462
=========== =========== =========== =========== =========== =========== ===========
INVESTMENT OPTIONS
------------------
December 31, 2000 21 22 23 24 25 26 Loans
-----------------------------------------------------------------------------------------
Assets
Investments:
Common stock $ - $ - $ - $ - $ - $ - $ -
Short-term investment fund - - - - - - -
Pooled separate accounts 57,667 682,160 1,756,326 34,537 1,247,036 183,171
Investment contracts - - - - - - -
Participant loans - - - - - - 5,623,043
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investments 57,667 682,160 1,756,326 34,537 1,247,036 183,171 5,623,043
Cash and invested cash (deficit) (228) (1,780) (3,825) 6,335 (3,329) (247)
Contributions receivable from
Employer companies - - - - - - -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net assets available for
Plan benefits $ 57,439 $ 680,380 $ 1,752,501 $ 40,872 $ 1,243,707 $ 182,924 $ 5,623,043
=========== =========== =========== =========== =========== =========== ===========
11
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, 2001 Total 1 2 3 4 5 6
-----------------------------------------------------------------------------------
Investment income:
Cash dividends $ 2,023,000 $2,023,000 $ - $ - $ - $ - $ -
Interest 1,303,629 89,904 - 787,654 - - -
------------ ----------- ---------- ----------- ---------- ---------- ----------
Total Investment Income 3,326,629 2,112,904 - 787,654 - - -
Net realized gain (loss)
on sale, distribution
and forfeitures of investments:
Common stock 4,871,991 4,871,991
Pooled separate accounts (626,764) - 61,275 - 354,102 224,511 304,907
------------ ----------- ---------- ----------- ---------- ---------- ----------
Total net realized gains (losses) 4,245,227 4,871,991 61,275 - 354,102 224,511 304,907
Net unrealized (depreciation)
appreciation of investments (16,443,315) (2,749,982) (21,748) - (2,117,826) (5,306,791) 516
Contributions:
Participant 6,244,407 1,055,952 12,393 95,881 770,119 752,272 206,641
Employer companies 1,756,656 27,185 4,067 43,402 240,235 252,222 62,199
------------ ----------- ---------- ----------- ---------- ---------- ----------
Total contributions 8,001,063 1,083,137 16,460 139,283 1,010,354 1,004,494 268,840
Transfers to affiliated plans (9,410,752) (3,675,051) (40,612) (497,724) (727,398) (670,943) (223,492)
Distributions to participants (15,811,537) (5,845,392) (88,418) (2,923,298) (981,409) (518,143) (1,469,290)
Administrative expenses (123,858) (70,863) (397) (6,371) (7,074) (5,854) (3,826)
Net transfers - (4,369,422) (422,458) 2,372,546 (815,227) (615,437) 3,672,577
------------ ----------- ---------- ----------- ---------- ---------- ----------
Net (decrease) increase in net
assets available for plan benefits (26,216,543) (8,642,678) (495,898) (127,910) (3,284,478) (5,888,163) 2,550,232
Net assets available for plan
benefits at beginning of the year 200,920,848 91,217,771 495,898 13,015,252 16,221,496 15,850,994 6,578,259
------------ ----------- ---------- ----------- ---------- ---------- ----------
Net assets available for plan
benefits at end of the year $174,704,305 $82,575,093 $ - $12,887,342 $12,937,018 $9,962,831 $9,128,491
============ =========== ========== =========== ========== ========== ==========
INVESTMENT OPTIONS
------------------
December 31, 2001 7 8 9 10 11 12 13
-----------------------------------------------------------------------------------
Investment income:
Cash dividends $ - $ - $ - $ - $ - $ - $ -
Interest - - - - - - -
------------ ----------- ---------- ----------- ---------- ---------- ----------
Total investment income - - - - - - -
Net realized gain (loss)
on sale, distribution
and forfeitures of investments:
Common stock - - - - - - -
Pooled separate accounts 116,662 250,685 46,477 42,824 (2,923) (65,907) 40,057
------------ ----------- ---------- ----------- ---------- ---------- ----------
Total net realized gains (losses) 116,662 250,685 46,477 42,824 (2,923) (65,907) 40,057
Net unrealized (depreciation)
appreciation of investments (16,207) (3,665,314) (123,273) (69,808) (1,848,079) (150,404) (574,247)
Contributions:
Participant 38,913 908,465 117,925 109,375 702,292 402,758 405,485
Employer companies 16,363 290,363 42,068 36,629 230,822 134,079 148,130
------------ ----------- ---------- ----------- ---------- ---------- ----------
Total contributions 55,276 1,198,828 159,993 146,004 933,114 536,837 553,615
Transfers to affiliated plans (208,189) (929,925) (232,278) (172,201) (789,746) (434,893) (406,531)
Distributions to participants (68,786) (802,781) (192,777) (88,585) (754,491) (211,619) (455,896)
Administrative expenses (816) (6,958) (1,099) (1,151) (5,192) (2,752) (2,566)
Net transfers 740,619 (643,259) 67,585 (71,394) (548,013) 77,540 (393,653)
------------ ----------- ---------- ----------- ---------- ---------- ----------
Net (decrease) increase in net
assets available for plan benefits 618,559 (4,598,724) (275,372) (214,311) (3,015,330) (251,198) (1,239,221)
Net assets available for plan
benefits at beginning of the year 1,048,794 16,756,020 1,744,804 1,454,513 12,169,493 4,182,666 5,648,510
------------ ----------- ---------- ----------- ---------- ---------- ----------
Net assets available for plan
benefits at end of the year $ 1,667,353 $12,157,296 $1,469,432 $ 1,240,202 $9,154,163 $3,931,468 $4,409,289
============ =========== ========== =========== ========== ========== ==========
12
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, 2001 14 15 16 17 18 19 20
-----------------------------------------------------------------------------------------
Investment income:
Cash dividends $ - $ - $ - $ - $ - $ - $ -
Interest - - - - - - -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investment income - - - - - - -
Net realized gain (loss)
on sale, distribution
and forfeitures of investments:
Common stock - - - - - - -
Pooled separate accounts 720 (3,140) (4,009) (109,182) (42,165) (1,011,529) (139,152)
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total net realized gains (losses) 720 (3,140) (4,009) (109,182) (42,165) (1,011,529) (139,152)
Net unrealized (depreciation)
appreciation of investments 2,544 (4,792) (10,947) 34,842 (59,897) 503,683 (47,917)
Contributions:
Participant 1,100 19,331 33,873 59,804 62,774 134,421 56,738
Employer companies 681 5,682 12,820 20,840 22,644 41,892 21,007
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total contributions 1,781 25,013 46,693 80,644 85,418 176,313 77,745
Transfers to affiliated plans (25) (1,426) (25,301) (41,834) (17,327) (139,891) (11,507)
Distributions to participants (39,749) 1,742 2,731 (15,547) (3,498) (32,330) (16,536)
Administrative expenses (298) (406) (386) (856) (906) (1,357) (947)
Net transfers 90,291 285,701 256,123 1,136,725 433,837 (2,208,996) 636,062
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net
assets available for plan benefits 55,264 302,692 264,904 1,084,792 395,462 (2,714,107) 497,748
Net assets available for plan
benefits at beginning of the year 90,074 62,896 178,693 629,929 841,351 2,714,107 438,462
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net assets available for plan
benefits at end of the year $ 145,338 $ 365,588 $ 443,597 $ 1,714,721 $1,236,81 $ - $ 936,210
=========== =========== =========== =========== =========== =========== ===========
INVESTMENT OPTIONS
------------------
December 31, 2001 21 22 23 24 25 26 27
-----------------------------------------------------------------------------------------
Investment income:
Cash dividends $ - $ - $ - $ - $ - $ - $ -
Interest - - - (6,360) - - 432,431
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investment income - - - (6,360) - - 432,431
Net realized gain (loss)
on sale, distribution
and forfeitures of investments:
Common stock - - - - - - -
Pooled separate accounts (13,459) (197,258) (118,617) 607 (326,130) (36,120) -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total net realized gains (losses) (13,459) (197,258) (118,617) 607 (326,130) (36,120) -
Net unrealized (depreciation)
appreciation of investments 3,031 68,423 (298,808) (2,646) (22,552) 34,884 -
Contributions:
Participant 3,897 39,263 150,588 232 87,390 16,525 -
Employer companies 1,233 12,809 51,368 41 31,001 6,874 -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total contributions 5,130 52,072 201,956 273 118,391 23,399 -
Transfers to affiliated plans 5,818 (38,094) (45,433) (24) (68,466) (18,259) -
Distributions to participants 1,602 (29,011) (21,102) - (42,123) (30,444)
Administrative expenses (341) (465) (1,388) (160) (968) (461) -
Net transfers 153,480 (536,047) 242,966 (32,562) 187,355 303,061 -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net
assets available for plan benefits 155,261 (680,380) (40,426) (40,872) (154,493) 276,060 (753,956)
Net assets available for plan
benefits at beginning of the year 57,439 680,380 1,752,501 40,872 1,243,707 182,924 5,623,043
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net assets available for plan
benefits at end of the year $ 212,700 $ - $ 1,712,075 $ - $ 1,089,214 $ 458,984 $ 4,869,087
=========== =========== =========== =========== =========== =========== ===========
13
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, 2000 Total 1 2 3 4 5 6
--------------------------------------------------------------------------------------
Investment income:
Cash dividends $ 2,028,687 $ 2,028,687 $ - $ - $ - $ - $ -
Interest 1,433,454 134,262 - 793,109 - - -
------------ ----------- ---------- ----------- ----------- ----------- ----------
Total investment income 3,462,141 2,162,949 - 793,109 - - -
Net realized gain (loss)
on sale, distribution
and forfeitures of investments:
Common stock 5,437,923 5,437,923
Pooled separate accounts 5,757,246 - 21,541 - 1,303,926 1,517,830 403,353
------------ ----------- ---------- ----------- ----------- ----------- ----------
Total net realized gains (losses) 11,195,169 5,437,923 21,541 - 1,303,926 1,517,830 403,353
Net unrealized appreciation
(depreciation) of investments (1,757,421) 10,023,056 18,507 - (3,249,854) (1,799,375) (18,078)
Contributions:
Participant 9,893,688 1,511,764 39,707 244,302 1,196,948 1,241,026 152,159
Employer companies 11,852,039 11,852,039 - - - - -
------------ ----------- ---------- ----------- ----------- ----------- ----------
Total contributions 21,745,727 13,363,803 39,707 244,302 1,196,948 1,241,026 152,159
Distributions to participants (11,536,259) (3,357,209) (76,775) (1,195,735) (796,650) (1,258,902) (1,042,476)
Administrative expenses (96,034) (44,287) (592) (6,345) (8,769) (7,541) (2,857)
Net transfers - (7,237,104) (44,949) 444,358 (2,931,896) 358,594 (841,175)
------------ ----------- ---------- ----------- ----------- ----------- ----------
Net increase (decrease) in net
assets available for plan benefits 23,013,323 20,349,131 (42,561) 279,689 (4,486,295) 51,632 (1,349,074)
Net assets available for plan
benefits at beginning of the year 177,907,525 70,868,640 538,459 12,735,563 20,707,791 15,799,362 7,927,333
------------ ----------- ---------- ----------- ----------- ----------- ----------
Net assets available for plan
benefits at end of the year $200,920,848 $91,217,771 $ 495,898 $13,015,252 $16,221,496 $15,850,994 $6,578,259
============ =========== ========== =========== =========== =========== ==========
INVESTMENT OPTIONS
------------------
December 31, 2000 7 8 9 10 11 12 13
------------------------------------------------------------------------------------
Investment income:
Cash dividends $ - $ - $ - $ - $ - $ - $ -
Interest - - - - - - -
------------ ----------- ---------- ----------- ----------- ----------- ----------
Total investment income - - - - - - -
Net realized gain (loss)
on sale, distribution
and forfeitures of investments:
Common stock - - - - - - -
Pooled separate accounts 14,713 1,229,294 86,997 44,150 1,236,329 (76,604) 128,917
------------ ----------- ---------- ----------- ----------- ----------- ----------
Total net realized gains (losses) 14,713 1,229,294 86,997 44,150 1,236,329 (76,604) 128,917
Net unrealized appreciation
(depreciation) of investments 68,411 (2,940,788) (82,209) (9,815) 2,207,548 205,129 (102,201)
Contributions:
Participant 120,709 1,590,112 280,168 272,153 1,226,453 759,178 822,253
Employer companies - - - - - - -
------------ ----------- ---------- ----------- ----------- ----------- ----------
Total contributions 120,709 1,590,112 280,168 272,153 1,226,453 759,178 822,253
Distributions to participants (109,399) (1,106,048) (89,111) (87,665) (854,425) (266,771) (313,815)
Administrative expenses (899) (8,594) (1,546) (1,476) (6,810) (3,161) (2,735)
Net transfers (128,786) 210,802 (330,310) 42,184 2,301,309 (878,467) (1,038,552)
------------ ----------- ---------- ----------- ----------- ----------- ----------
Net increase (decrease) in net
assets available for plan benefits (35,251) (1,025,222) (136,011) 259,531 1,695,308 (670,954) (506,133)
Net assets available for plan
benefits at beginning of the year 1,084,045 17,781,242 1,880,815 1,194,982 10,474,185 4,853,620 6,154,643
------------ ----------- ---------- ----------- ----------- ----------- ----------
Net assets available for plan
benefits at end of the year $ 1,048,794 $16,756,020 $1,744,804 $ 1,454,513 $12,169,493 $ 4,182,666 $5,648,510
============ =========== ========== =========== =========== =========== ==========
14
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, 2000 14 15 16 17 18 19 20
-----------------------------------------------------------------------------------------
Investment income:
Cash dividends $ - $ - $ - $ - $ - $ - $ -
Interest - - - - - - -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investment income - - - - - - -
Net realized gain (loss)
on sale, distribution
and forfeitures of investments:
Common stock - - - - - - -
Pooled separate accounts - (641) 3,711 (6,703) (781) (124,440) (916)
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total net realized gains (losses) - (641) 3,711 (6,703) (781) (124,440) (916)
Net unrealized appreciation
(depreciation) of investments 641 (2,725) 6,149 (58,855) (43,355) (503,683) 7,009
Contributions:
Participant - 1,895 7,643 43,218 27,731 109,244 20,373
Employer companies - - - - - - -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total contributions - 1,895 7,643 43,218 27,731 109,244 20,373
Distributions to participants - (7,718) (17,167) (16,541) (37,075) (13,546) (16,738)
Administrative expenses (3) (2) (6) (73) (79) (102) (15)
Net transfers 89,436 72,087 178,363 668,883 894,910 3,246,634 428,749
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net
assets available for plan benefits 90,074 62,896 178,693 629,929 841,351 2,714,107 438,462
Net assets available for plan
benefits at beginning of the year - - - - - - -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net assets available for plan
benefits at end of the year $ 90,074 $ 62,896 $ 178,693 $ 629,929 $ 841,351 $ 2,714,107 $ 438,462
=========== =========== =========== =========== =========== =========== ===========
INVESTMENT OPTIONS
------------------
December 31, 2000 21 22 23 24 25 26 Loans
-----------------------------------------------------------------------------------------
Investment income:
Cash dividends $ - $ - $ - $ - $ - $ - $ -
Interest - - - 6,360 - - 499,723
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investment income - - - 6,360 - - 499,723
Net realized gain (loss)
on sale, distribution
and forfeitures of investments:
Common stock - - - - - - -
Pooled separate accounts 43 (4,893) (4,698) - (7,822) (6,060) -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total net realized gains (losses) 43 (4,893) (4,698) - (7,822) (6,060) -
Net unrealized appreciation
(depreciation) of investments (5,227) (68,423) (346,155) 2,646 (236,130) (4,290) -
Contributions:
Participant 1,674 25,525 105,254 5,905 59,534 28,760 -
Employer companies - - - - - - -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total contributions 1,674 25,525 105,254 5,905 59,534 28,760 -
Distributions to participants (17,705) 2,907 (3,953) (4) (64,585) (5,628) (783,525)
Administrative expenses (3) (24) (63) (1) (44) (7) -
Net transfers 78,657 725,288 2,002,116 25,966 1,492,754 170,149 -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net
assets available for plan benefits 57,439 680,380 1,752,501 40,872 1,243,707 182,924 (283,802)
Net assets available for plan
benefits at beginning of the year - - - - - - 5,906,845
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net assets available for plan
benefits at end of the year $ 57,439 $ 680,380 $ 1,752,501 $ 40,872 $ 1,243,707 $ 182,924 $ 5,623,043
=========== =========== =========== =========== =========== =========== ===========
15
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, 1999 TOTAL 1 2 3 4 5 6
----------------------------------------------------------------------------------------------
Investment income:
Cash dividends $ 1,687,397 $ 1,687,397 $ - $ - $ - $ - $ -
Interest 1,320,538 122,244 - 702,338 - - -
------------ ------------ ------------ ------------ ------------ ------------ -----------
Total investment income 3,007,935 1,809,641 - 702,338 - - -
Net realized gain on sale, distribution
and forfeitures of investments:
Common stock 6,821,567 6,821,567 - - - - -
Pooled separate accounts 5,564,689 - 20,165 - 1,497,091 818,413 163,220
------------ ------------ ------------ ------------ ------------ ------------ -----------
Total realized gains 12,386,256 6,821,567 20,165 - 1,497,091 818,413 163,220
Net unrealized appreciation
(depreciation) of investments 3,941,598 (8,408,405) (28,592) - 2,176,065 4,156,004 127,526
Contributions:
Participant 12,044,177 2,084,402 132,500 1,157,823 1,619,112 1,201,052 498,500
Employer companies 5,829,738 5,829,738 - - - - -
------------ ------------ ------------ ------------ ------------ ------------ -----------
Total contributions 17,873,915 7,914,140 132,500 1,157,823 1,619,112 1,201,052 498,500
Distributions to participants (14,645,718) (5,762,669) (4,136) (1,726,040) (1,715,157) (766,649) (1,592,075)
Administrative expenses (107,948) (56,208) (900) (7,433) (11,663) (5,686) (3,844)
Net transfers - (2,580,629) (407,301) 527,836 (1,167,320) (1,108,414) 5,088,828
------------ ------------ ------------ ------------ ------------ ------------ -----------
Net increase (decrease) in net
assets available for plan benefits 22,456,038 (262,563) (288,264) 654,524 2,398,128 4,294,720 4,282,155
Net assets available for plan
benefits at beginning of the year 155,451,487 71,131,203 826,723 12,081,039 18,309,663 11,504,642 3,645,178
------------ ------------ ------------ ------------ ------------ ------------ -----------
Net assets available for plan
benefits at end of the year $177,907,525 $ 70,868,640 $ 538,459 $ 12,735,563 $ 20,707,791 $ 15,799,362 $ 7,927,333
============ ============ ============ ============ ============ ============ ===========
DECEMBER 31, 1999 7 8 9 10 11 12 13 Loans
---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------
Investment income:
Cash dividends $ - $ - $ - $ - $ - $ - $ - $ -
Interest - - - - - - - 495,956
---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------
Total investment income - - - - - - - 495,956
Net realized gain on sale,
distribution and forfeitures
of investments:
Common stock - - - - - - - -
Pooled separate accounts 33,722 1,280,657 112,210 37,978 1,137,622 408,417 55,194 -
---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------
Total realized gains 33,722 1,280,657 112,210 37,978 1,137,622 408,417 55,194 -
Net unrealized appreciation
(depreciation) of investments (79,529) 2,774,181 138,663 (16,792) 3,006,593 (613,836) 709,720 -
Contributions:
Participant 139,297 1,660,156 341,374 329,419 987,954 998,707 893,881 -
Employer companies - - - - - - - -
---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------
Total contributions 139,297 1,660,156 341,374 329,419 987,954 998,707 893,881 -
Distributions to participants (118,134) (1,368,682) (243,086) (140,694) (424,605) (683,191) (303,898) 203,298
Administrative expenses (1,507) (7,608) (1,833) (2,055) (3,047) (3,299) (2,865) -
Net transfers (122,299) 238,065 133,951 (293,115) 645,436 (500,655) (454,408) 25
---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------
Net increase (decrease) in net
assets available for plan
benefits (148,450) 4,576,769 481,279 (85,259) 5,349,953 (393,857) 897,624 699,279
Net assets available for plan
benefits at beginning of the
year 1,232,495 13,204,473 1,399,536 1,280,241 5,124,232 5,247,477 5,257,019 5,207,566
---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------
Net assets available for plan
benefits at end of the year $1,084,045 $17,781,242 $1,880,815 $1,194,982 $10,474,185 $4,853,620 $6,154,643 $5,906,845
========== =========== ========== ========== =========== ========== ========== ==========
16
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 as follows:
Option Description of Investment Option
------ --------------------------------
1 LNC Common Stock Fund, which invests exclusively in the stock of LNC.
However, some funds may be invested in the Wells Fargo Bank Short-Term
Investment Fund until the LNC stock can be purchased.
2 Government Bond Fund (SA#26), which invests primarily in fixed income
securities backed by the United States government that will mature in 3
to 5 years.
3 Guaranteed Fund, which invests primarily in high-quality bonds and
mortgages. The account's balances are backed by the general assets of
Lincoln Life.
4 Core Equity Fund (SA#11), which invests primarily in large
capitalization stocks of well-established companies.
5 Medium Capitalization Equity Fund (SA#17), which invests primarily in
medium-sized companies.
6 Short-Term Fund (SA#14), which invests in high quality money market
securities that include commercial paper, bankers acceptances,
certificates of deposit, loan participation and short-term U.S.
government debt.
7 Government/Corporate Bond Fund (SA#12), which invests primarily in U.S.
government and high-quality corporate bonds and securities.
8 Large Capitalization Equity Fund (SA#23), which invests primarily in
high-risk common stocks which have the potential for a significant
appreciation in value within 18 months from the date of purchase.
9 Balanced Fund (SA#21), which invests in three different asset classes:
stocks, bonds and money market instruments, which provides growth
through the stock portion and reduced risk through the bond and money
market portion.
10 High Yield Bond Fund (SA#20), which invests primarily in
below-investment-grade bonds, providing higher rates of return to
compensate higher risk.
11 Small Capitalization Equity Fund (SA#24), which invests primarily in
the stock of new, rapid growth companies.
12 Value Equity Fund (SA#28), which invests primarily in large
capitalization stocks of undervalued companies that are industry
leaders.
13 International Equity Fund (SA#22), which invests primarily in stocks of
non-United States companies.
14 Conservative Balanced Account (SA#30), which invests in three different
asset classes with a bias towards fixed-income investments and some
equity exposure. The emphasis is on maximum long-term return.
17
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
4. INVESTMENT OPTIONS (CONTINUED)
15 Aggressive Balanced Fund (SA#32), which invests in three different
asset classes with a bias towards equities. The emphasis is on maximum
long-term total return.
16 Delaware Growth and Income Fund (SA#61), which invests in
large-capitalization/value securities and seeks to provide high returns
with reduced risk over the long term.
17 Deutsche VIT Equity 500 Index Fund (formerly Equity 500 Index Fund)
(SA#27), which invests in large cap/blend equities and seeks to provide
maximum long-term total return.
18 Fidelity VIP Contrafund (SA#35), which seeks diversified capital
appreciation by investing in VIP II Contrafund Portfolio.
19 Janus Fund (SA#42), which seeks to provide long-term growth of capital
in a manner consistent with preservation of capital by investing in the
Janus Fund which has an emphasis on large-cap/growth securities.
20 Neuberger Berman AMT Regency Fund (formerly Mid-Cap Value Fund)
(SA#38), which seeks capital growth by investing in AMT Partners
Portfolio which has an aggressive growth investment style.
21 Social Awareness Fund (SA#33), which seeks capital growth and social
responsibility by investing in the Social Awareness Portfolio.
22 T. Rowe Price International Equity Fund (SA#45), which seeks to provide
long-term growth of capital by investing in non-U.S. large cap/growth
and value-blend securities.
23 Janus Aspen Series Worldwide Growth Fund (formerly Global Growth fund)
(SA#34), which seeks long-term growth of capital by investing in the
Janus Aspen Series Worldwide Growth Portfolio.
24 Delaware Global Bond Fund (SA#60), which seeks to provide high total
return with reduced risk over the long-term by investments in
high-quality global fixed income/intermediate-term maturities.
25 Neuberger Berman Mid-Cap Growth Fund (formerly Mid-Cap Growth Equity
Fund) (SA#37), which seeks growth of capital by investing in the AMT
Mid-Cap Growth Portfolio.
26 Deutsche VIT Small Cap Index Fund (SA#36), which seeks to reflect
Russell 2000 performance by investing in the Small Cap Index Portfolio.
The fair value of LNC common stock in the LNC Common Stock Fund not subject to
participant direction was $19,373,868 and $13,458,714 at December 31, 2001 and
2000, respectively.
The information as to the number of participants selecting each investment
option is not readily available. Beginning January 1, 1994, the Plan began
offering investment options 9 through 13 noted above to participants. During
2000, the Plan also began offering investment options 14 through 26. Investment
options 2 and 4 through 26 are invested in pooled separate accounts of Lincoln
Life through a group annuity contract issued by Lincoln Life.
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.
18
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
5. INCOME TAX STATUS
The Plan has received a determination letter from the Internal Revenue Service
dated February 9, 1995, 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. However, subsequent to the issuance of the favorable
determination letter, the Plan was amended. Once qualified, the Plan, as
amended, is required to operate in conformity with the Code to maintain its
qualification. The Plan Administrator believes the Plan, as amended, 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.
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. The tax basis of securities
distributed to the participant is provided by the Lincoln National Corporation
Benefits Investment Committee.
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 $ 123,858, $96,034 and $107,948 in 2001,
2000 and 1999, respectively.
8. CONCENTRATIONS OF CREDIT RISKS
The Plan has investments in common stock of LNC, pooled separate accounts, and
unallocated investment contracts with Lincoln Life of $79,310,536, $74,348,874
and $12,875,716 respectively, at December 31, 2001 (45.5%, 42.7% and 7.4% of net
assets, respectively). LNC and Lincoln Life operate predominately in the
insurance and investment management industries.
19
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, 2001
(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 fund:
Lincoln National Corporation common stock 1,632,912 shares $ 49,395,098 $ 79,310,536
Wells Fargo Bank Short-Term Investment Fund 1,550,053 par value 1,550,053 1,550,053
------------ -------------
$ 50,945,151 80,860,589
*Pooled separate accounts--
The Lincoln National Life Insurance
Company Separate Accounts:
Core Equity Fund 1,042,478.322 participation units ** 12,954,461
Medium Capitalization Equity Fund 850,458.860 participation units ** 9,954,621
Short-Term Fund 2,539,094.322 participation units ** 9,050,602
Government/Corporate Bond Fund 240,565.401 participation units ** 1,666,926
Large Capitalization Equity Fund 1,312,128.741 participation units ** 12,164,614
Balanced Fund 232,236.514 participation units ** 1,517,828
High Yield Bond Fund 488,623.323 participation units ** 1,239,344
Small Capitalization Equity Fund 1,437,032.033 participation units ** 9,168,408
Value Equity Fund 1,852,637.180 participation units ** 3,940,189
International Equity Fund 790,992.900 participation units ** 4,401,718
Conservative Balanced Fund 82,609.176 participation units ** 145,301
Aggressive Balanced Fund 185,944.483 participation units ** 365,492
Delaware Growth and Income Fund 281,949.398 participation units ** 447,256
Deutsche VIT Equity 500 Index Fund 1,865,979.358 participation units ** 1,714,089
Fidelity VIP Contrafund 1,320,387.520 participation units ** 1,236,279
Neuberger-Berm AMT Regency Fund 970,815.564 participation units ** 935,769
Social Awareness Fund 234,290.682 participation units ** 216,531
Janus Aspen Worldwide Growth Fund 1,822,238.647 participation units ** 1,711,447
Neuberger Mid-Cap Growth Fund 1,056,334.289 participation units ** 1,078,517
Deutsche VIT Small Cap Index Fund 384,835.126 participation units ** 439,482
-------------
74,348,874
*Investment contracts--
The Lincoln National Life
Insurance Company (Guaranteed Fund) 5.50% interest rate ** 12,875,716
Participant loans Various loans at
interest rates
varying from
6.0% to 11%.
4,853,048
------------
$172,938,227
============
* Indicates party-in-interest to the Plan.
** Indicates a participant-directed fund. The cost disclosure is not required.
20
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Plan Number: 006
EIN: 35-0472300
Schedule H, Line 4j--Schedule of Reportable Transactions
Year ended December 31, 2001
(a) (b) (c) (d) (g) (h) (i)
Current Value
of Assets on Net
Identity of Purchase Selling Cost of Transaction Gain
Party Involved Description of Assets Price Price Assets Date (Loss)
--------------------------------------------------------------------------------------------------------------------
Category (iii)--Series of transactions in excess of 5 percent of Plan assets.
Wells Fargo Bank Lincoln National Corporation
shares of common stock:
Purchases $ 9,519,235 $ - $ 9,519,235 $ 9,519,235 $ -
Sales - 9,580,174 5,998,083 9,580,174 3,582,092
Wells Fargo Bank Wells Fargo Bank Short-Term
Investment Fund:
Purchases 31,638,816 - 31,638,816 31,638,816 -
Sales - 32,323,132 32,323,132 32,323,132 -
Note: Columns (e) and (f), and categories (i), (ii) and (iv) are not applicable.
21
SIGNATURE
THE PLAN. Pursuant to the requirements of the Securities Exchange Act of 1934,
the Administrator of the Plan has duly caused this annual report to be signed on
its behalf by the undersigned hereunto duly authorized.
March 29, 2002 By: /s/ George E. Davis
----------------------
George E. Davis
Administrator