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, 2006
 
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, 2006 and 2005 and for three years ended December 31, 2006, 2005, and 2004
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, 2006 and 2005 and for three years ended December 31, 2006, 2005, and 2004
 
 
 
 
 
 
 
 
Contents
   
   
   
1
   
Audited Financial Statements
 
   
2
3
4
   
Supplemental Schedule
 
   
22
 
 
 

 

 
 
 
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, 2006 and 2005, and the related statements of changes in net assets available for benefits for each of the three years in the period ended December 31, 2006. 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 audits 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, 2006 and 2005, and the changes in its net assets available for benefits for each of the three years in the period ended December 31, 2006, 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, 2006, 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 26, 2007
 
 
1


 
Agents’ Savings and Profit-Sharing Plan
 
           
Statements of Net Assets Available for Plan Benefits
 
           
           
   
December 31
 
   
2006
 
2005
 
Assets
             
Investments:
             
Common stock – Lincoln National Corporation
             
(cost: 2006 – $35,751,944; 2005 – $37,144,896)
 
$
59,554,426
 
$
53,923,715
 
Wells Fargo Bank Short-Term Investment Account
   
1,748,430
   
800,619
 
Pooled separate accounts – The Lincoln National
             
Life Insurance Company Separate Accounts
             
(cost: 2006 – $87,337,123; 2005 – $76,485,949)
   
126,882,016
   
108,129,318
 
Investment contracts The Lincoln National
             
Life Insurance Company
   
16,312,170
   
14,904,972
 
Participant loans
   
4,010,852
   
3,965,728
 
Total Investments
   
208,507,894
   
181,724,352
 
               
Accrued interest receivable
   
58,106
   
53,592
 
Cash
   
740,328
   
 
Due from broker
   
   
48,464
 
Contributions receivable from participant deferrals
   
12,646
   
 
Contributions receivable from Employer companies
   
   
964,322
 
Total assets
   
209,318,974
   
182,790,730
 
               
Liabilities
             
Due to broker
   
21,546
   
 
Total liabilities
   
21,546
   
 
Net assets available for plan benefits
 
$
209,297,428
 
$
182,790,730
 
               
See accompanying notes.
             
 
2


Agents’ Savings and Profit-Sharing Plan
 
 
 
 
 
 
 
Statements of Changes in Net Assets Available for Plan Benefits
               
               
   
Year ended December 31
 
   
2006
 
2005
 
2004
 
Investment income:
             
Cash dividends – Lincoln National Corporation
 
$
1,431,425
 
$
1,637,253
 
$
1,819,776
 
Interest:
                   
The Lincoln National Life
   
681,676
   
690,088
   
748,249
 
Insurance Company Separate Accounts
                   
Other
   
225,353
   
236,082
   
250,743
 
     
907,029
   
926,170
   
998,992
 
     
2,338,454
   
2,563,423
   
2,818,768
 
Net realized gain on sale
                   
and distributions of investments:
                   
Lincoln National Corporation
                   
common stock
   
5,504,007
   
5,362,745
   
4,070,037
 
The Lincoln National Life Insurance
                   
Company Separate Accounts
   
5,920,004
   
3,712,858
   
1,652,409
 
     
11,424,011
   
9,075,603
   
5,722,446
 
                     
Net change in unrealized
   
14,925,196
   
5,961,900
   
12,363,106
 
appreciation of investments
                   
Contributions:
                   
Participants
   
7,889,483
   
7,297,381
   
7,452,877
 
Employer companies
   
1,960,209
   
3,068,581
   
5,199,336
 
     
9,849,692
   
10,365,962
   
12,652,213
 
                     
Transfers (to) from affiliated plans
   
(204,186
)
 
593,910
   
3,588,680
 
Deposit from Jefferson-Pilot 401(k) Plan
   
14,357,318
   
   
 
Distributions to participants
   
(26,009,979
)
 
(29,711,933
)
 
(14,994,001
)
Administrative expenses
   
(173,808
)
 
(168,180
)
 
(128,210
)
                     
Net increase (decrease) in net
                   
assets available for plan benefits
   
26,506,698
   
(1,319,315
)
 
22,023,002
 
Net assets available for plan benefits
                   
at beginning of the year
   
182,790,730
   
184,110,045
   
162,087,043
 
Net assets available for plan benefits
                   
at end of the year
 
$
209,297,428
 
$
182,790,730
 
$
184,110,045
 
                     
See accompanying notes.
                 
 
3

 
Agents’ Savings and Profit-Sharing Plan
 
Notes to Financial Statements
 
1. Significant Accounting Policies
 
Investments 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 estimated by The Lincoln National Life Insurance Company ("Lincoln Life") 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 Lincoln Life. As described in Financial Accounting Standards Board Staff Position, FSP AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans (the "FSP"), investment contracts held by a defined-contribution plan are required to be reported at fair value. The Plan adopted FSP AAG INV-1 in 2006. The adoption did not have a material effect on the Plan's financial statements as interest rates are adjusted to market quarterly. Accordingly, contract value, which represents net contributions plus interest at the contract rate, approximates fair value. 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, Lincoln Financial Advisors Corporation, Jefferson Pilot Life Insurance Company, and Lincoln Life & Annuity Company of New York ("Employers"). Effective April 1, 2006, LNC acquired Jefferson-Pilot Financial Corporation. Jefferson-Pilot sponsored a 401(k) plan for their eligible agents. Effective June 1, 2006 a plan amendment granted eligibility to the Plan to the legacy Jefferson-Pilot agents. In addition, on May 31, 2006, formal approval was obtained for the transfer to this Plan of assets from the accounts of those agents in the legacy Jefferson-Pilot 401(k) plan. This increased the net assets of the Plan by $14.4 million. Effective June 1, 2006, a participant may make pre-tax contributions at a rate of at least 1% but not more than 50% (25% maximum for January 1, 2004 through May 31, 2006) of eligible earnings (9% for highly compensated employees, as defined in the Plan), 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).
 
 
4

 
The Lincoln National Life Insurance Company
Agents’ Savings and Profit-Sharing Plan
 
Notes to Financial Statements (continued)
 
 
2. Description of the Plan (continued)
 
In addition to each participant’s pre-tax contributions, Employer matching contributions are provided to the Plan. The employer matching contribution for eligible participants, other than former Jefferson-Pilot agents, is equal to 50% of each participant’s pre-tax contributions, not to exceed 6% of eligible earnings per pay period. The matching contribution for eligible former Jefferson-Pilot agents is equal to 10% of each participant’s pre-tax contribution, not to exceed 6% of eligible compensation. These matching contributions are directed by the participant. In addition, the employer may contribute an additional discretionary match. The discretionary match is an amount determined by the sole discretion of the LNC Board of Directors. To be eligible, the participant must be employed on the last day of the plan year or have died, retired or become disabled during the year. The amount of the discretionary matching contribution varies according to whether Lincoln Financial Advisors Corporation has met certain performance-based criteria, as determined by the compensation committee of LNC's Board of Directors.
 
Participants' 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 matching contributions for the 2005 plan year, deposited in 2006, were initially invested in the LNC Common Stock Account. 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 Plan termination, all non-vested amounts allocated to participant accounts would 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 five years except that the maximum repayment period may be 20 years for the purchase of a principal residence.
 
5

 
The Lincoln National Life Insurance Company
Agents’ Savings and Profit-Sharing Plan
 
Notes to Financial Statements (continued)
 
 
2. Description of the Plan (continued)
 
Upon termination of service due to disability or retirement, a participant 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; in cases of death, the participant’s beneficiary makes that election. 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.
 
6


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, 2006
 
December 31, 2005
 
   
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**
   
896,904
   
66.400
 
$
59,554,426
 * 
 
1,016,853
   
53.030
 
$
53,923,715
 *
Pooled separate account investment
                                     
contracts underwritten by Lincoln Life:
                                     
Core Equity Account
   
675,925.619
   
16.597
   
11,218,540
 *  
824,597.484
   
14.835
   
12,233,234
 *
Medium Capitalization Equity Account
   
637,440.864
   
15.038
   
9,586,154
   
734,938.419
   
13.760
   
10,112,973
 *
Short-Term Account
   
2,474,519.389
   
3.950
   
9,774,599
   
2,149,801.047
   
3.777
   
8,120,658
 
Government/ Corporate Bond Account
   
478,163.909
   
9.428
   
4,508,225
   
354,494.503
   
8.943
   
3,170,138
 
Large Capitalization Equity Account
   
845,211.812
   
9.783
   
8,268,538
   
1,115,245.939
   
9.543
   
10,643,015
 *
Balanced Account
   
329,975.428
   
8.897
   
2,935,692
   
339,718.660
   
8.129
   
2,761,505
 
High Yield Bond Account
   
861,514.961
   
4.386
   
3,778,949
   
842,271.585
   
3.932
   
3,312,065
 
Small Capitalization Equity Account
   
1,004,016.412
   
8.930
   
8,966,268
   
1,178,821.391
   
8.329
   
9,818,639
 *
Value Equity Account
   
2,106,200.926
   
3.048
   
6,418,858
   
2,108,301.523
   
2.572
   
5,422,130
 
International Equity Account
   
1,078,128.890
   
12.018
   
12,957,276
 *  
1,098,341.429
   
9.766
   
10,726,842
 *
Conservative Balanced Account
   
327,871.900
   
2.388
   
783,056
   
349,127.833
   
2.200
   
768,116
 
Aggressive Balanced Account
   
494,596.549
   
2.815
   
1,392,190
   
389,545.026
   
2.539
   
989,016
 
Delaware Growth and Income Account
   
2,315,835.708
   
2.205
   
5,106,881
   
1,156,905.944
   
1.785
   
2,065,540
 
Scudder VIT Equity 500 Index Account
   
4,198,242.064
   
1.208
   
5,071,896
   
3,616,416.234
   
1.049
   
3,793,259
 
Fidelity VIP Contrafund
   
6,248,064.787
   
1.625
   
10,151,855
   
5,256,435.601
   
1.458
   
7,665,460
 
Neuberger-Berman AMT Regency Account
   
1,777,817.112
   
1.771
   
3,148,514
   
2,056,425.337
   
1.596
   
3,281,027
 
Social Awareness Account
   
1,514,969.167
   
1.329
   
2,014,000
   
1,563,453.979
   
1.187
   
1,856,133
 
American Funds Insurance Series Global Growth
   
4,481,783.250
   
1.270
   
5,693,657
   
3,412,657.312
   
1.062
   
3,624,242
 
Neuberger-Berman Mid-Cap Growth Account
   
3,099,565.265
   
1.391
   
4,312,735
   
2,471,345.139
   
1.215
   
3,002,684
 
Scudder VIT Small Cap Index Account
   
1,970,608.242
   
1.901
   
3,746,520
   
1,621,173.104
   
1.621
   
2,627,273
 
Janus Aspen Growth Account
   
   
   
   
27,422.947
   
9.792
   
268,526
 
Fidelity VIP Overseas Account
   
   
   
   
128,967.468
   
14.475
   
1,866,843
 
BlackRock Legacy Account
   
289,661.157
   
1.607
   
465,485
   
   
   
 
American Funds International Account
   
348,696.154
   
18.876
   
6,582,128
   
   
   
 
Total pooled separate accounts
               
126,882,016
               
108,129,318
 
                                       
Contract Value
                                     
Investment contracts
                                     
underwritten by Lincoln Life
   
16,312,170
         
16,312,170
 *  
14,904,972
         
14,904,972
 *
                                       
Estimated Value
                                     
Wells Fargo Bank short-term
                                     
investment account
   
1,748,430
         
1,748,430
   
800,619
         
800,619
 
Participants loans
   
4,010,852
         
4,010,852
   
3,965,728
         
3,965,728
 
Total investments
             
$
208,507,894
             
$
181,724,352
 
                                   
* Investments that represent 5% or more of the fair value of net assets available for benefits as of the indicated date.
** Indicates party in interest to the Plan.
 
7


The Lincoln National Life Insurance Company
 
Agents’ Savings and Profit-Sharing Plan
 
 
 
 
 
 
 
 
 
Notes to Financial Statements (continued)
 
               
3. Investments (continued)
             
               
Net realized gain on sale and distribution of investments is summarized as follows:
               
   
Year Ended December 31
 
   
2006
 
2005
 
2004
 
Common stock
                   
Proceeds from disposition of stock
 
$
12,038,077
 
$
14,876,314
 
$
11,566,749
 
Cost of stock disposed
   
6,534,070
   
9,513,569
   
7,496,712
 
Net realized gain on sale and distribution
                   
of common stock
 
$
5,504,007
 
$
5,362,745
 
$
4,070,037
 
               
Pooled separate accounts
                   
Proceeds from disposition of units
 
$
43,764,916
 
$
33,710,587
 
$
29,304,850
 
Cost of units disposed
   
37,844,912
   
29,997,729
   
27,652,441
 
Net realized gain on sale and distribution
                   
of pooled separate accounts
 
$
5,920,004
 
$
3,712,858
 
$
1,652,409
 
                 
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
 
   
2006
 
2005
 
2004
 
Fair value in excess of cost:
                   
At beginning of the year
 
$
48,422,185
 
$
42,460,285
 
$
30,097,179
 
At end of the year
   
63,347,381
   
48,422,185
   
42,460,285
 
Change in net unrealized appreciation of investments
 
$
14,925,196
 
$
5,961,900
 
$
12,363,106
 
               
Common stock
 
$
7,023,661
 
$
1,635,194
 
$
4,108,565
 
Pooled separate accounts
   
7,901,535
   
4,326,706
   
8,254,541
 
Change in net unrealized appreciation of investments
 
$
14,925,196
 
$
5,961,900
 
$
12,363,106
 
                     
 
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, 2006 and 2005. The rate on new contributions is guaranteed through the three succeeding calendar year quarters. The credited interest rates for the remaining contract value balance, which approximate the current market rate, were 4.0% at both December 31, 2006 and 2005, 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 3.5%. 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.
 
8


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 (described below) is as follows:
 
                               
Investment Options
 
December 31, 2006
 
Total
 
1
 
2
 
3
 
4
 
5
 
6
 
Assets
                                           
Investments:
                                           
Common stock
 
$
59,554,426
 
$
59,554,426
 
$
 
$
 
$
 
$
 
$
 
Short-term investment fund
   
1,748,430
   
1,748,430
   
   
   
   
   
 
Pooled separate accounts
   
126,882,016
   
   
   
11,218,540
   
9,586,154
   
9,774,599
   
4,508,225
 
Investment contracts
   
16,312,170
   
   
16,312,170
   
   
   
   
 
Participant loans
   
4,010,852
   
   
   
   
   
   
 
Total investments
   
208,507,894
   
61,302,856
   
16,312,170
   
11,218,540
   
9,586,154
   
9,774,599
   
4,508,225
 
                               
Accrued interest receivable
   
58,106
   
6,410
   
51,123
   
   
   
   
 
Cash
   
740,328
   
(12,604
)
 
752,932
   
   
   
   
 
Due from broker
   
   
   
   
   
   
   
 
Contributions receivable from participant deferrals
   
12,646
   
12,646
   
   
   
   
   
 
Contributions receivable from Employer companies
   
   
   
   
   
   
   
 
Net assets
   
209,318,974
   
61,309,308
   
17,116,225
   
11,218,540
   
9,586,154
   
9,774,599
   
4,508,225
 
                                             
Liabilities
                                           
Due to broker
   
21,546
   
   
204
   
932
   
398
   
2,661
   
105
 
Total liabilities
   
21,546
   
   
204
   
932
   
398
   
2,661
   
105
 
Net assets available for plan benefits
 
$
209,297,428
 
$
61,309,308
 
$
17,116,021
 
$
11,217,608
 
$
9,585,756
 
$
9,771,938
 
$
4,508,120
 
Number of participants selecting investment options
         
1,518
   
402
   
623
   
513
   
557
   
372
 
                               
                                 
Investment Options
 
December 31, 2006
   
7
 
 
8
 
 
9
 
 
10
 
 
11
 
 
12
 
 
13
 
Assets
                                           
Investments:
                                           
Common stock
 
$
 
$
 
$
 
$
 
$
 
$
 
$
 
Short-term investment account
   
   
   
   
   
   
   
 
Pooled separate accounts
   
8,268,538
   
2,935,692
   
3,778,949
   
8,966,268
   
6,418,858
   
12,957,276
   
783,056
 
Investment contracts
   
   
   
   
   
   
   
 
Participant loans
   
   
   
   
   
   
   
 
Total investments
   
8,268,538
   
2,935,692
   
3,778,949
   
8,966,268
   
6,418,858
   
12,957,276
   
783,056
 
                               
Accrued interest receivable
   
   
   
   
   
   
   
 
Cash
   
   
   
   
   
   
   
 
Due from broker
                                           
Contributions receivable from participant deferrals
   
   
   
   
   
   
   
 
Contributions receivable from Employer companies
   
   
   
   
   
   
   
 
Net assets
   
8,268,538
   
2,935,692
   
3,778,949
   
8,966,268
   
6,418,858
   
12,957,276
   
783,056
 
                                             
Liabilities
                                           
Due to broker
   
665
   
913
   
7
   
584
   
713
   
425
   
29
 
Total liabilities
   
665
   
913
   
7
   
584
   
713
   
425
   
29
 
Net assets available for plan benefits
 
$
8,267,873
 
$
2,934,779
 
$
3,778,942
 
$
8,965,684
 
$
6,418,145
 
$
12,956,851
 
$
783,027
 
Number of participants selecting investment options
   
528
   
183
   
371
   
622
   
411
   
703
   
49
 
                               
                                             
Investment Options
 
December 31, 2006
   
14
 
 
15
 
 
16
 
 
17
 
 
18
 
 
19
 
 
20
 
Assets
                                           
Investments:
                                           
Common stock
 
$
 
$
 
$
 
$
 
$
 
$
 
$
 
Short-term investment account
   
   
   
   
   
   
   
 
Pooled separate accounts
   
1,392,190
   
5,106,881
   
5,071,896
   
10,151,855
   
3,148,514
   
2,014,000
   
5,693,657
 
Investment contracts
   
   
   
   
   
   
   
 
Participant loans
   
   
   
   
   
   
   
 
Total investments
   
1,392,190
   
5,106,881
   
5,071,896
   
10,151,855
   
3,148,514
   
2,014,000
   
5,693,657
 
                               
Accrued interest receivable
   
   
   
   
   
   
   
 
Cash
   
   
   
   
   
   
   
 
Due from broker
   
   
   
   
   
   
   
 
Contributions receivable from participant deferrals
   
   
   
   
   
   
   
 
Contributions receivable from Employer companies
   
   
   
   
   
   
   
 
Net assets
   
1,392,190
   
5,106,881
   
5,071,896
   
10,151,855
   
3,148,514
   
2,014,000
   
5,693,657
 
                                             
Liabilities
                                           
Due to broker
   
88
   
1,145
   
841
   
1,668
   
394
   
33
   
2,927
 
Total liabilities
   
88
   
1,145
   
841
   
1,668
   
394
   
33
   
2,927
 
Net assets available for plan benefits
 
$
1,392,102
 
$
5,105,736
 
$
5,071,055
 
$
10,150,187
 
$
3,148,120
 
$
2,013,967
 
$
5,690,730
 
Number of participants selecting investment options
   
143
   
487
   
295
   
667
   
268
   
136
   
396
 
                                 
                                             
                                             
 
9

The Lincoln National Life Insurance Company
 
Agents’ Savings and Profit-Sharing Plan
 
                       
Notes to Financial Statements (continued)
 
                       
                       
4. Investment Options (continued)
 
   
 
 
 
 
 
 
 
 
 
 
Investment Options
 
December 31, 2006
 
21
 
22
 
25
 
26
 
Loans
 
Assets
                     
Investments:
                               
Common stock
 
$
 
$
 
$
 
$
 
$
 
Short-term investment account
   
   
   
   
   
 
Pooled separate accounts
   
4,312,735
   
3,746,520
   
465,485
   
6,582,128
   
 
Investment contracts
   
   
   
   
   
 
Participant loans
   
   
   
   
   
4,010,852
 
Total investments
   
4,312,735
   
3,746,520
   
465,485
   
6,582,128
   
4,010,852
 
                           
Accrued interest receivable
   
   
   
   
   
573
 
Cash
   
   
   
   
   
 
Due from broker
   
   
   
   
   
 
Contributions receivable from participant deferrals
   
   
   
   
   
 
Contributions receivable from Employer companies
   
   
   
   
   
 
Net assets available for plan benefits
   
4,312,735
   
3,746,520
   
465,485
   
6,582,128
   
4,011,425
 
                                 
Liabilities
                               
Due to broker
   
944
   
1,104
   
922
   
3,844
   
 
Total liabilities
   
944
   
1,104
   
922
   
3,844
   
 
Net assets available for plan benefits
 
$
4,311,791
 
$
3,745,416
 
$
464,563
 
$
6,578,284
 
$
4,011,425
 
Number of participants selecting investment options
   
505
   
416
   
55
   
568
   
228
 
                         
Note: Investment options 23 and 24 had a zero balance as of 12/31/06 and are not shown.
                               
 
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, 2005
 
Total
 
1
 
2
 
3
 
4
 
5
 
6
 
Assets
                                           
Investments:
                                           
Common stock
 
$
53,923,715
 
$
53,923,715
 
$
 
$
 
$
 
$
 
$
 
Short-term investment account
   
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 participant deferrals
   
   
   
   
   
   
   
 
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 participant deferrals
   
   
   
   
   
   
   
 
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 participant deferrals
   
   
   
   
   
   
   
 
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