1000 - CONSOLIDATED BALANCE SHE
1000 - CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Millions | Jun. 30, 2009
| Dec. 31, 2008
|
Assets | ||
Fixed maturity available-for-sale securities, at fair value (amortized cost: 2009 - $58,567; 2008 - $54,381) | $55,050 | $48,141 |
Equity available-for-sale securities, at fair value (cost: 2009 - $400; 2008 - $428) | 236 | 254 |
Trading securities | 2,317 | 2,333 |
Mortgage loans on real estate | 7,468 | 7,715 |
Real estate | 159 | 125 |
Policy loans | 2,897 | 2,921 |
Derivative investments | 1,234 | 3,397 |
Other investments | 1,187 | 1,624 |
Total investments | 70,548 | 66,510 |
Cash and invested cash | 2,539 | 5,754 |
Deferred acquisition costs and value of business acquired | 10,456 | 11,402 |
Premiums and fees receivable | 429 | 481 |
Accrued investment income | 881 | 814 |
Reinsurance recoverables | 7,729 | 8,396 |
Reinsurance related derivative assets | 46 | 31 |
Goodwill | 3,344 | 3,944 |
Other assets | 9,982 | 10,149 |
Separate account assets | 61,091 | 55,655 |
Total assets | 167,045 | 163,136 |
Liabilities | ||
Future contract benefits | 16,128 | 18,431 |
Other contract holder funds | 62,427 | 60,570 |
Short-term debt | 455 | 815 |
Long-term debt | 4,775 | 4,731 |
Funds withheld reinsurance liabilities | 1,222 | 2,042 |
Deferred gain on business sold through reinsurance | 529 | 619 |
Payables for collateral under securities loaned and derivatives | 1,712 | 3,706 |
Other liabilities | 9,631 | 8,590 |
Separate account liabilities | 61,091 | 55,655 |
Total liabilities | 157,970 | 155,159 |
Stockholders' Equity | ||
Series A preferred stock - 10,000,000 shares authorized | 0 | 0 |
Common stock - 800,000,000 shares authorized; 302,093,017 and 255,869,859 shares issued and outstanding as of June 30, 2009, and December 31, 2008, respectively | 7,681 | 7,035 |
Retained earnings | 3,101 | 3,745 |
Accumulated other comprehensive loss | (1,707) | (2,803) |
Total stockholders' equity | 9,075 | 7,977 |
Total liabilities and stockholders' equity | $167,045 | $163,136 |
1010 - PARENTHETICAL DATA TO TH
1010 - PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Millions, except Share data | Jun. 30, 2009
| Dec. 31, 2008
|
Assets | ||
Fixed maturity available-for-sale securities, at amortized cost | $58,567 | $54,381 |
Equity available-for-sale securities, at amortized cost | $400 | $428 |
Stockholders' Equity | ||
Series A preferred stock shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock - shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock - shares issued and outstanding (in shares) | 302,093,017 | 255,869,859 |
2000 - CONSOLIDATED STATEMENTS
2000 - CONSOLIDATED STATEMENTS OF INCOME (LOSS) (USD $) | ||||
In Millions, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Revenues | ||||
Insurance premiums | $542 | $503 | $1,050 | $993 |
Insurance fees | 689 | 792 | 1,393 | 1,560 |
Investment advisory fees | 48 | 76 | 92 | 152 |
Net investment income | 971 | 1,057 | 1,984 | 2,102 |
Realized loss: | ||||
Total other-than-temporary impairment losses on securities | (221) | (100) | (431) | (158) |
Portion of loss recognized in other comprehensive income | 103 | 0 | 192 | 0 |
Net other-than-temporary impairment losses on securities recognized in earnings | (118) | (100) | (239) | (158) |
Realized gain (loss), excluding other-than-temporary impairment losses on securities | (323) | 0 | (392) | 23 |
Total realized loss | (441) | (100) | (631) | (135) |
Amortization of deferred gain on business sold through reinsurance | 18 | 19 | 37 | 38 |
Other revenues and fees | 125 | 146 | 227 | 291 |
Total revenues | 1,952 | 2,493 | 4,152 | 5,001 |
Benefits and Expenses | ||||
Interest credited | 599 | 613 | 1,226 | 1,224 |
Benefits | 583 | 655 | 1,504 | 1,304 |
Underwriting, acquisition, insurance and other expenses | 752 | 805 | 1,458 | 1,577 |
Interest and debt expense | 61 | 65 | 61 | 140 |
Impairment of intangibles | (1) | 175 | 602 | 175 |
Total benefits and expenses | 1,994 | 2,313 | 4,851 | 4,420 |
Income (loss) from continuing operations before taxes | (42) | 180 | (699) | 581 |
Federal income tax expense (benefit) | (41) | 68 | (114) | 187 |
Income (loss) from continuing operations | (1) | 112 | (585) | 394 |
Income (loss) from discontinued operations, net of federal income taxes | (160) | 13 | (155) | 20 |
Net income (loss) | ($161) | $125 | ($740) | $414 |
Earnings (Loss) Per Common Share - Basic | ||||
Income (loss) from continuing operations (in dollars per share) | $0 | 0.43 | -2.27 | 1.51 |
Income (loss) from discontinued operations (in dollars per share) | -0.62 | 0.05 | -0.6 | 0.08 |
Net income (loss) (in dollars per share) | -0.62 | 0.48 | -2.87 | 1.59 |
Earnings (Loss) Per Common Share - Diluted | ||||
Income (loss) from continuing operations (in dollars per share) | $0 | 0.43 | -2.27 | 1.5 |
Income (loss) from discontinued operations (in dollars per share) | -0.62 | 0.05 | -0.6 | 0.08 |
Net income (loss) (in dollars per share) | -0.62 | 0.48 | -2.87 | 1.58 |
3000 - CONSOLIDATED STATEMENTS
3000 - CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | ||||||||
In Millions | Common Stock [Member]
| Retained Earnings [Member]
| Net Unrealized Gain (Loss) on Available-for-Sale Securities [Member]
| Unrealized Other-Than-Temporary Impairment on Available-for-Sale Securities [Member]
| Net Unrealized Gain on Derivative Instruments [Member]
| Foreign Currency Translation Adjustment [Member]
| Funded Status of Employee Benefit Plans [Member]
| Total
|
Balance as of beginning-of-year at Dec. 31, 2007 | $7,200 | $4,293 | $86 | $0 | $53 | $175 | ($89) | |
Issuance of common stock | 0 | |||||||
Stock compensation/issued for benefit plans | 41 | |||||||
Deferred compensation payable in stock | 3 | |||||||
Retirement of common stock/cancellation of shares | (221) | |||||||
Cumulative effect of adoption of EITF 06-10 | (4) | |||||||
Cumulative effect of adoption of FSP 115-2 | 0 | 0 | 0 | |||||
Comprehensive income (loss) | (619) | |||||||
Less other comprehensive income (loss), net of tax | (1,033) | |||||||
Net income (loss) | 414 | 414 | ||||||
Retirement of common stock | (205) | |||||||
Dividends declared: Common (2009 - $0.02; 2008 - $0.83) | (215) | |||||||
Change during the period, Net Unrealized Loss on Available-for-Sale Securities | (1,025) | |||||||
Change during the period, Unrealized Other-Than-Temporary Impairment on Available-for-Sale Securities | 0 | |||||||
Change during the period, Net Unrealized Gain on Derivative Instruments | (12) | |||||||
Change during the period, Foreign Currency Translation Adjustment | 2 | |||||||
Change during the period, Funded Status of Employee Benefit Plans | 2 | |||||||
Balance as of end-of-period at Jun. 30, 2008 | 7,023 | 4,283 | (939) | 0 | 41 | 177 | (87) | 10,498 |
Balance as of beginning-of-year at Dec. 31, 2008 | 7,035 | 3,745 | (2,654) | 0 | 127 | 6 | (282) | 7,977 |
Issuance of common stock | 652 | |||||||
Stock compensation/issued for benefit plans | (9) | |||||||
Deferred compensation payable in stock | 3 | |||||||
Retirement of common stock/cancellation of shares | 0 | |||||||
Cumulative effect of adoption of EITF 06-10 | 0 | |||||||
Cumulative effect of adoption of FSP 115-2 | 102 | (84) | (18) | |||||
Comprehensive income (loss) | 458 | |||||||
Less other comprehensive income (loss), net of tax | 1,198 | |||||||
Net income (loss) | (740) | (740) | ||||||
Retirement of common stock | 0 | |||||||
Dividends declared: Common (2009 - $0.02; 2008 - $0.83) | (6) | |||||||
Change during the period, Net Unrealized Loss on Available-for-Sale Securities | 1,289 | |||||||
Change during the period, Unrealized Other-Than-Temporary Impairment on Available-for-Sale Securities | (100) | |||||||
Change during the period, Net Unrealized Gain on Derivative Instruments | (73) | |||||||
Change during the period, Foreign Currency Translation Adjustment | 86 | |||||||
Change during the period, Funded Status of Employee Benefit Plans | (4) | |||||||
Balance as of end-of-period at Jun. 30, 2009 | $7,681 | $3,101 | ($1,449) | ($118) | $54 | $92 | ($286) | $9,075 |
3010 - PARENTHETICAL DATA TO TH
3010 - PARENTHETICAL DATA TO THE CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | ||
1/1/2009 - 6/30/2009
| 1/1/2008 - 6/30/2008
| |
Common Stock, Dividends, Per Share, Declared | 0.02 | 0.83 |
4000 - CONSOLIDATED STATEMENTS
4000 - CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | ||||
In Millions | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Cash Flows from Operating Activities | ||||
Net income (loss) | ($161) | $125 | ($740) | $414 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front end loads deferrals and interest, net of amortization | (160) | (454) | ||
Trading securities purchases, sales and maturities, net | 35 | 96 | ||
Change in premiums and fees receivable | 129 | 71 | ||
Change in accrued investment income | (67) | (33) | ||
Change in future contract benefits | (462) | 291 | ||
Change in other contract holder funds | 213 | 183 | ||
Change in funds withheld reinsurance liability and reinsurance recoverables | 89 | (31) | ||
Change in federal income tax accruals | 110 | (230) | ||
Realized loss | 631 | 135 | ||
Loss on disposal of discontinued operations | 237 | 12 | ||
Impairment of intangibles | (1) | 175 | 602 | 175 |
Amortization of deferred gain on business sold through reinsurance | (18) | (19) | (37) | (38) |
Stock-based compensation expense | 14 | 19 | ||
Other | (147) | (159) | ||
Net cash provided by operating activities | 447 | 451 | ||
Cash Flows from Investing Activities | ||||
Purchases of available-for-sale securities | (7,661) | (3,615) | ||
Sales of available-for-sale securities | 2,078 | 1,014 | ||
Maturities of available-for-sale securities | 1,619 | 1,924 | ||
Purchases of other investments | (2,564) | (1,213) | ||
Sales or maturities of other investments | 2,942 | 914 | ||
Increase (decrease) in payables for collateral under securities loaned and derivatives | (1,994) | 355 | ||
Proceeds from sale of subsidiaries/businesses and disposal of discontinued operations | 4 | 644 | ||
Other | (28) | (53) | ||
Net cash used in investing activities | (5,604) | (30) | ||
Cash Flows from Financing Activities | ||||
Payment of long-term debt, including current maturities | (522) | (100) | ||
Issuance of long-term debt | 495 | 0 | ||
Decrease in commercial paper, net | (112) | (65) | ||
Deposits of fixed account values, including the fixed portion of variable | 5,795 | 4,913 | ||
Withdrawals of fixed account values, including the fixed portion of variable | (3,285) | (2,787) | ||
Transfers to and from separate accounts, net | (1,028) | (1,233) | ||
Payment of funding agreements | 0 | (300) | ||
Issuance of common stock | 652 | 0 | ||
Common stock issued for benefit plans and excess tax benefits | (20) | 25 | ||
Repurchase of common stock | 0 | (401) | ||
Dividends paid to stockholders | (56) | (217) | ||
Net cash provided by (used in) financing activities | 1,919 | (165) | ||
Net increase (decrease) in cash and invested cash, including discontinued operations | (3,238) | 256 | ||
Cash and invested cash, including discontinued operations, as of beginning-of-year | 5,926 | 1,665 | ||
Cash and invested cash, including discontinued operations, as of end-of-period | $2,688 | $1,921 | $2,688 | $1,921 |
6000 - Nature of Operations and
6000 - Nature of Operations and Basis of Presentation | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Nature of Operations and Basis of Presentation | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1.Nature of Operations and Basis of Presentation Nature of Operations Lincoln National Corporation and its majority-owned subsidiaries (LNC or the Company, which also may be referred to as we, our or us) operate multiple insurance and investment management businesses through five business segments, see Note 17.The collective group of businesses uses Lincoln Financial Group as its marketingidentity.Through our business segments, we sell a wide range of wealth protection, accumulation and retirement income products.These products include institutional and/or retail fixed and indexed annuities, variable annuities, universal life (UL) insurance, variable universal life (VUL) insurance, term life insurance, mutual funds and managed accounts. Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (GAAP) for interim financial information and with the instructions for the Securities and Exchange Commission (SEC) Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X.Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements.Therefore, the information contained in the Notes to Consolidated Financial Statements included in the Companys Annual Report on Form 10-K for the year ended December 31, 2008 (2008 Form 10-K) should be read in connection with the reading of these interim unaudited consolidated financial statements. In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Companys results.Operating results for the six month period ended June 30, 2009, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2009.All material intercompany accounts and transactions have been eliminated in consolidation. We have evaluated our subsequent events through the time of filing this Form 10-Q with the SEC, on August 7, 2009.For details of our subsequent events see Note 19. Certain amounts reported in prior periods consolidated financial statements have been reclassified to conform to the presentation adopted in the current year.These reclassifications have no effect on net income or stockholders equity of the prior periods. |
6010 - New Accounting Standards
6010 - New Accounting Standards | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
New Accounting Standards | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 2.New Accounting Standards Adoption of New Accounting Standards Statement of Financial Accounting Standards No. 141(R) Business Combinations In December 2007, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 141(revised 2007), Business Combinations (SFAS 141(R)), which is a revision of SFAS No. 141 Business Combinations (SFAS 141).SFAS 141(R) retains the fundamental requirements of SFAS 141, but establishes principles and requirements for the acquirer in a business combination to recognize and measure the identifiable assets acquired, liabilities assumed and any noncontrolling interests in the acquiree and the goodwill acquired or the gain from a bargain purchase.For a more detailed description of SFAS 141(R), see Note 2 of our 2008 Form 10-K.We adopted SFAS 141(R) for acquisitions occurring after January 1, 2009.The adoption did not have a material impact on our consolidatedfinancial condition or results of operations. In April 2009, the FASB amended the guidance in SFAS 141(R) related to the recognition and measurement of contingencies acquired in a business combination by issuing FASB Staff Position (FSP) No. FAS 141(R)-1, Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise From Contingencies (FSP 141(R)-1).FSP141(R)-1 clarifies that contingent assets acquired and liabilities assumed (jointly referred to as pre-acquisition contingencies) in a business combination are measured at the acquisition-date fair value only if fair value can be determined during the measurement period.If the fair value cannot be determined during the measurement period, but information is available at the end of the measurement period indicating the pre-acquisition contingency is both probable and can be reasonably estimated,then the pre-acquisition contingency is recognized at the acquisition date based on the estimated amount.Subsequent to the acquisition date, the measurement of pre-acquisition contingencies is dependent on the nature of the contingency.We adopted FSP 141(R)-1 for acquisitions occurring after January 1, 2009.The adoption did not have a material impact on our consolidated financial condition or results of operations. SFAS No. 160 Noncontrolling Interests in Consolidated Financial Statements an Amendment of Accounting Research Bulletin No. 51 In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements - an amendment of Accounting Research Bulletin (ARB) No. 51 (SFAS 160), which establishes accounting and reporting standards surrounding noncontrolling interests, or minority interests, which are the portions of equity in a subsidiarynot attributable, directly or indirectly, to a parent.For a more detailed description of SFAS 160, see Note 2 of our 2008 Form 10-K.We adopted SFAS 160 effective January 1, 2009.The adoption did not have a material impact on our consolidated financial condition and results of operations. FSP No. FAS 140-3 Accounting for Transfers of Financial Assets and Repurchase Financing Transactions In February 2008, the FASB issued FSP No. FAS 140-3, Accounting for Tra |
6020 - Acquisitions and Disposi
6020 - Acquisitions and Dispositions | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Acquisitions and Dispositions | |
Schedule of Business Acquisitions, by Acquisition and Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 3.Acquisitions and Dispositions Acquisitions Newton County Loan Savings, FSB (NCLS) On January 8, 2009, the Office of Thrift Supervision approved our application to become a savings and loan holding company and our acquisition of NCLS, a federally regulated savings bank, located in Indiana.We agreed to contribute $10 million to the capital of NCLS.We closed on our purchase of NCLS on January 15, 2009,which did not have a material impact on our consolidated financial condition or results of operations. Dispositions Discontinued U.K. Operations On June15, 2009, we entered into a share purchase agreement (SPA) with SLF of Canada UK Limited (SLF) and Sun Life Assurance Company of Canada (Sun Life), as the guarantor, pursuant to which we agreed to sell to SLF all of the outstanding capital stock of Lincoln National (UK) plc (Lincoln UK), our subsidiary, which is focusedprimarily on providing life and retirement income products in the United Kingdom. Accordingly, the assets and liabilities of this business have been reclassified as held-for-sale for all periods presented and are reported within other assets and other liabilities on our Consolidated Balance Sheets.The major classes of assets and liabilities held-for-sale (in millions) were as follows: As of As of June 30, December 31, 2009 2008 Assets Investments $ 978 $ 831 Cash and invested cash 149 172 DAC and VOBA 596 534 Accrued investment income 21 18 Reinsurance receivable 64 54 Other assets 44 44 Separate account assets 5,447 4,978 Total assets held-for-sale $ 7,299 $ 6,631 Liabilities Other contract holder funds $ 305 $ 277 Future contract benefits 918 829 Other liabilities 323 129 Separate account liabilities 5,447 4,978 Total liabilities held-for-sale $ 6,993 $ 6,213 We have reclassified the results of operations of Lincoln UK into income (loss) from discontinued operations for all periods presented on the Consolidated Statements of Income (Loss), and selected amounts (in millions) were as follows: For the Three For the Six Months Ended Months Ended June 30, June 30, 2009 2008 2009 2008 Discontinued Operations Before Disposal Revenues: Insurance premiums $ 14 $ 26 $ 25 $ 45 Insurance fees 33 52 57 98 Net investment income 15 20 28 40 Realized loss - (8 ) (3 ) (8 ) Other revenue and fees 1 - - 1 Total revenues $ 63 $ 90 $ 107 $ 176 Income from discontinued operations before disposal, before federal income tax expense $ 15 $ 20 $ 23 $ 37 Federal income tax expense 5 7 8 13 Income from discontinued operations before disposal 10 13 15 24 Disposal |
6030 - Variable Interest Entiti
6030 - Variable Interest Entities | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Variable Interest Entities | |
Schedule of Variable Interest Entities [Text Block] | 4.Variable Interest Entities Our involvement with variable interest entities (VIEs) is primarily to obtain financing and to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes.We have carefully analyzed each VIE to determine whether we are the primary beneficiary.Based on our analysis of the expectedlosses and residual returns of the VIEs in which we have a variable interest, we have concluded that there are no VIEs for which we are the primary beneficiary, and, as such, we have not consolidated the VIEs in our consolidated financial statements.However, for those VIEs in which we are not the primary beneficiary, but hold a variable interest, we recognize the fair value of our variable interest in our consolidated financial statements. Information (in millions) included on our Consolidated Balance Sheets for those VIEs where we had significant variable interest and where we were a sponsor was as follows: As of June 30, 2009 As of December 31, 2008 Maximum Maximum Total Total Loss Total Total Loss Assets Liabilities Exposure Assets Liabilities Exposure Affiliated trust $ 5 $ - $ - $ 5 $ - $ - Credit-linked notes 219 - 600 50 - 600 Affiliated Trust We are the sponsor of an affiliated trust, Lincoln National Capital Trust VI, which was formed solely for the purpose of issuing trust preferred securities and lending the proceeds to us.We own the common securities of this trust, approximately a 3% ownership, and the only assets of the trust are the junior subordinated debenturesissued by us.Our common stock investment in this trust was financed by the trust and is reported in other investments on our Consolidated Balance Sheets.Distributions are paid by the trust to the preferred security holders on a quarterly basis and the principal obligations of the trust are irrevocably guaranteed by us.Upon liquidation of the trust, the holders of the preferred securities are entitled to a fixed amount per share plus accumulated and unpaid distributions.We reserve the right to redeem the preferred securities at a fixed price plus accumulated and unpaid distributions and defer the interest payments due on the subordinated debentures for up to 20 consecutive quarters, but not beyond the maturity date of the subordinated debenture. Our common stock investment does not represent a significant variable interest in the trust, as we do not receive any distributions or absorb any losses from the trust.In addition, our guarantee of the principal obligations of the trust does not represent a variable interest, as we are guaranteeing our own performance.Therefore, we are not the primary beneficiary and do not consolidate the trust.Since our investment in the common stock of the trust was financed directly by the trust, we do not have any equity investment at risk, and, therefore, do not have exposure to loss from the trust. Credit-Linked Notes We invested in two credit-linked notes (CLNs) where the note holders do not have voting rights or decision-making capabilities.The entities tha |
6040 - Investments
6040 - Investments | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Investments | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 5.Investments AFS Securities Pursuant to SFAS 157, we have categorized the AFS securities into a three-level hierarchy, based on the priority of the inputs to the respective valuation technique.The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level1)and the lowest priority to unobservable inputs (Level3), as described in Note 16, which also includes additional disclosures regarding our fair value measurements required by SFAS 157. The amortized cost, gross unrealized gains, losses and OTTI and fair value of available-for-sale securities (in millions) were as follows: As of June 30, 2009 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed Maturity Securities Corporate bonds $ 43,749 $ 1,110 $ 2,650 $ 54 $ 42,155 U.S. Government bonds 207 17 3 - 221 Foreign government bonds 487 20 28 - 479 Mortgage-backed securities ("MBS"): CMOs 6,453 245 510 179 6,009 Residential mortgage pass-through securities ("MPTS") 1,869 56 30 - 1,895 Commercial MBS ("CMBS") 2,511 16 542 - 1,985 Asset-backed securities ("ABS"): CDOs 205 3 91 - 117 CLNs 600 - 381 - 219 State and municipal bonds 922 12 27 - 907 Hybrid and redeemable preferred stocks 1,564 8 509 - 1,063 Total fixed maturity securities 58,567 1,487 4,771 233 55,050 Equity Securities Banking securities 274 - 148 - 126 Insurance securities 51 1 15 - 37 Other financial services securities 23 7 9 - 21 Other securities 52 1 1 - 52 Total equity securities 400 9 173 - 236 Total AFS securities $ 58,967 $ 1,496 $ 4,944 $ 233 $ 55,286 (1) This amount is comprised of the gross unrealized OTTI cumulative effect adjustment as discussed in Note 2 and the amount reflected in the Consolidated Statements of Income (Loss) in the first six months of 2009. As of December 31, 2008 Amortized Gross Unrealized Fair Cost Gains Losses OTTI Value Fixed Maturity Securities Corporate bonds $ 39,773 $ 638 $ 4,463 $ - $ 35,948 U.S. Government bonds 204 42 - - 246 Foreign government bonds 532 37 49 - 520 MBS: CMOs 6,918 174 780 - 6,312 |
6050 - Derivative Instruments
6050 - Derivative Instruments | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Derivative Instruments | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 6.Derivative Instruments Types of Derivative Instruments and Derivative Strategies We maintain an overall risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate risk, foreign currency exchange risk, equity market risk and credit risk.We assess these risks by continually identifying and monitoring changes in interest rate exposure, foreign currency exposure, equity market exposure and credit exposure that may adversely impact expected future cash flows and by evaluating hedging opportunities.Derivative instruments that are used as part of our interest rate risk management strategy include interest rate swaps, interest rate futures, interest rate caps, forward-starting interest rate swaps and treasury locks.Derivative instruments that are used as part of our foreign currency riskmanagement strategy include foreign currency swaps, currency futures and foreign currency forwards.Call options on our stock, call options on the Standard Poors (SP) 500 Index (SP 500), total return swaps, variance swaps, equity collars, put options and equity futures are used as part of our equity market risk management strategy.We also use credit default swaps as part of our credit risk management strategy. As of June 30, 2009, we had derivative instruments that were designated and qualifying as cash flow hedges, fair value hedges and the hedge of a net investment in a foreign subsidiary.In addition, we had embedded derivatives that qualified under SFAS 133 and embedded derivatives that did not qualify under SFAS 133.We also had derivative instruments that were economic hedges, but were not designated as hedging instruments under SFAS 133.See Note 1 of our 2008 Form 10-K for a detailed discussion of the accounting treatment for derivative instruments. Our derivative instruments are monitored by our Asset Liability Management Committee and our Equity Risk Management Committee as part of those committees oversight of our derivative activities.Our committees are responsible for implementing various hedging strategies that are developed through their analysis of financial simulation models and other internal and industry sources.The resulting hedging strategies are incorporated into our overall risk management strategies. We use a hedging strategy designed to mitigate the risk and income statement volatility caused by changes in the equity markets, interest rates and volatility associated with living benefit guarantees offered in our variable annuity products, including the Lincoln SmartSecurity Advantage guaranteed withdrawal benefit (GWB) feature, the 4LATER Advantage GIB feature and the i4LIFE Advantage GIB feature.See GLBs Accounted for Under SFAS 157/SFAS 133 below for further details. See Note 16 for disclosures regarding our fair value measurement required by SFAS 157. We have derivative instruments with off-balance-sheet risks whose notional or contract amounts exceed the credit exposure.Outstanding derivative instruments with off-balance-sheet risks (in millions) were as follows: As of June 30, 2009 Number As |
6060 - Federal Income Taxes
6060 - Federal Income Taxes | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Federal Income Taxes | |
Income Tax Disclosure [Text Block] | 7.Federal Income Taxes The effective tax rate is a ratio of tax expense over pre-tax income (loss).Because the pre-tax loss of $42 million resulted in a tax benefit of $41 million for the three months ended June 30, 2009, the effective tax rate was not meaningful.The effective tax rate was 38% for the three months ended June 30, 2008.The effective tax rate on pre-tax income (loss) from continuing operations was lower than the prevailing corporate federal income tax rate.Differences in the effective rates and the U.S. statutory rate of 35% during the second quarters of 2009 and 2008 were the result of certain tax preferred investment income, separate account dividends-received deduction (DRD), foreign tax credits and other tax preference items. Federal income tax benefit for the second quarter and first six months of 2009 included an increase of $56 million related to favorable adjustments from the 2008 tax return, filed in the first quarter of 2009, primarily relating to the separate account DRD, foreign tax credits and other tax preference items. The application of GAAP requires us to evaluate the recoverability of our deferred tax assets and establish a valuation allowance if necessary, to reduce our deferred tax asset to an amount that is more likely than not to be realizable.Considerable judgment and the use of estimates are required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance.In evaluating the need for a valuation allowance, we consider many factors, including: the nature and character of the deferred tax assets and liabilities; taxable income in prior carryback years; future reversals of temporary differences; the length of time carryovers can be utilized; and any tax planning strategies we would employ to avoid a tax benefit from expiring unused.Although realization is not assured,management believes it is more likely than not that the deferred tax assets, including our capital loss deferred tax asset, will be realized. Our net deferred tax asset position is primarily due to a deferred tax benefit associated with net unrealized capital losses on available for sale securities that have been recognized in OCI for financial statement purposes but are not recognized for tax return purposes.As a result, our analysis of the recoverability of our netdeferred tax asset position is focused primarily on this deferred tax benefit.Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within the next five years following the year in which the capital losses are recognized for tax purposes.Capital losses can also be carried back three years to offset capital gains generated in prior tax years. In assessing the need for a valuation allowance related to unrealized capital losses, we considertax planning strategies that include holding debt securities with market value losses until maturity or recovery, selling appreciated securities to generate capital gains to offset capital losses, and sales of certain corporate assets. Such tax planning strategies are viewed by management as prudent and feasible and will be implemented |
6070 - Goodwill
6070 - Goodwill | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Goodwill | |
Schedule of Goodwill [Text Block] | 8.Goodwill The changes in the carrying amount of goodwill (in millions) by reportable segment were as follows: For the Six Months Ended June 30, 2009 Balance At Purchase Balance Beginning- Accounting At End- of-Year Adjustments Impairment of-Period Retirement Solutions: Annuities $ 1,040 $ - $ (600 ) $ 440 Defined Contribution 20 - - 20 Insurance Solutions: Life Insurance 2,188 - - 2,188 Group Protection 274 - - 274 Investment Management 248 - - 248 Other Operations 174 2 (2 ) 174 Total goodwill $ 3,944 $ 2 $ (602 ) $ 3,344 We performed a Step 1 goodwill impairment analysis on all of our reporting units as of March 31, 2009.The Step 1 analysis for Insurance Solutions Life and Retirement Solutions Annuities reporting units utilized primarily a discounted cash flow valuation technique.In determining the estimated fair value of thesereporting units, we incorporated consideration of discounted cash flow calculations, the level of our own share price and assumptions that market participants would make in valuing these reporting units.Our fair value estimations were based primarily on an in-depth analysis of projected future cash flows and relevant discount rates, which considered market participant inputs (income approach).The discounted cash flow analysis required us to make judgments about revenues, earnings projections,capital market assumptions and discount rates.For our other reporting units, we used other available information including market data obtained through strategic reviews and other analysis to support our Step 1 conclusions. All of our reporting units passed the Step 1 analysis, except for our Retirement Solutions Annuities reporting unit, which required a Step 2 analysis to be completed.In our Step 2 analysis, we estimated the implied fair value of the reporting units goodwill as determined by allocating the reporting units fair value determinedin Step 1 to all of its net assets (recognized and unrecognized) as if the reporting unit had been acquired in a business combination at the date of the impairment test. Based upon our Step 2 analysis, we recorded goodwill impairment for the Retirement Solutions Annuities reporting unit in the first quarter of 2009, which was attributable primarily to higher discount rates driven by higher debt costs and equity market volatility, deterioration in sales and declines in equity markets. There were no indicatorsof impairment as of June 30, 2009, due primarily to the continued improvement in the equity markets and lower discount rates. For our acquisition of NCLS, we are in the process of finalizing the fair value of the assets acquired and liabilities assumed as of the acquisition date.As such, these values are subject to change.During the first six months of 2009, we impaired the estimated goodwill that arose from the acquisition after giving considerationto the expected financial performance and other relevant factors of this business. |
6080 - Guaranteed Benefit Featu
6080 - Guaranteed Benefit Features | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Guaranteed Benefit Features | |
Schedule of Minimum Guaranteed Benefit Liabilities [Text Block] | 9.Guaranteed Benefit Features We issue variable annuity contracts through our separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder (traditional variable annuities).We also issue variable annuity and life contracts through separate accounts that include various types of guaranteed death benefit (GDB), guaranteed withdrawal benefit (GWB) and guaranteed income benefit (GIB) features.The GDB features include those where we contractually guarantee to the contract holder either:return of no less than total deposits made to the contract less any partial withdrawals (return of net deposits); total deposits made to the contract less any partial withdrawals plus a minimum return (minimum return); or the highest contract value on any contract anniversary date through age 80 minus any payments or withdrawals following the contract anniversary (anniversary contract value). Certain features of these guarantees are considered embedded derivatives and are recorded in future contract benefits on our Consolidated Balance Sheets at fair value under SFAS 133 and SFAS 157 (see Note 16 for details).Other guarantees that are not considered embedded derivatives meet the criteria as insurance benefits and areaccounted for under the valuation techniques included in SOP 03-1.Still other guarantees contain characteristics of both an embedded derivative and an insurance benefit and are accounted for under an approach that weights these features and their associated reserves accordingly based on their hybrid nature.We use derivative instruments to hedge our exposure to the risks and earnings volatility that result from the embedded derivatives for living benefits in certain of our variable annuityproducts.The change in fair value of these instruments tends to move in the opposite direction of the change in fair value of the embedded derivatives.The net impact of these changes is reported as guaranteed living benefits (GLB), which is reported as a component of realized loss on our Consolidated Statements of Income (Loss). The "market consistent scenarios" used inthe determination of the fair value of GWB liability aresimilarto those used by an investment bank to value derivatives for which the pricing is not transparent and the aftermarket is nonexistent or illiquid. In our calculation, risk-neutral Monte-Carlo simulations resultingin over 10 million scenarios are utilized to value the entire block of guarantees. The market consistent scenario assumptions, at each valuation date, are those we view to be appropriate for a hypothetical market participant.The market consistent inputs include assumptions for the capital markets (e.g. implied volatilities, correlation among indices, risk-free swap curve, etc.), policyholder behavior (e.g. policy lapse, benefit utilization, mortality, etc.), risk margins, administrative expensesand a margin for profit.We believe these assumptions are consistent with those that would be used by a market participant; however, as the related markets develop we will continue to reassess our assumptions.It is possible that different valuation techni |
Term Debt
Term Debt | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Long-Term Debt | |
Long-term Debt [Text Block] | 10.Long-Term Debt Changes in long-term debt, excluding current portion (in millions), were as follows: For the Six Months Ended June 30, 2009 Balance as of beginning-of-year $ 4,731 Early extinguishment of the following capital securities: Portion of 7%, due 2066 (1) (78 ) Portion of 6.05%, due 2067 (2) (9 ) Senior notes issued (3) 495 Maturity of LIBOR + 11 bps notes, due 2009 (500 ) Reclassification to short-term debt 250 Change in fair value hedge (116 ) Accretion (amortization) of discounts (premiums), net 2 Balance as of end-of-period $ 4,775 (1) The results of the extinguishment of debt were favorable by a ratio of 25 cents to one dollar. (2) The results of the extinguishment of debt were favorable by a ratio of 23 cents to one dollar. (3) On June 22, 2009, we issued 8.75% fixed rate senior notes due 2019.We have the option to repurchase the outstanding notes by paying the greater of (i) 100% of the principal amount of the notes to be redeemed and (ii) the make-whole amount, plus in each case any accrued and unpaid interest at the dateof redemption.The make-whole amount is equal to the sum of the present values of the remaining scheduled payments on the senior notes, discounted to the date of redemption on a semi-annual basis, at a rate equal to the sum of the applicable treasury rate (as defined in the senior notes) plus 50 basis points. Details underlying the recognition of a gain on the extinguishment of debt (in millions) reported within interest expense on our Consolidated Statements of Income (Loss) were as follows: For the Three Months Ended March 31, 2009 Principal balance outstanding prior to payoff $ 87 Unamortized debt issuance costs and discounts prior to payoff (1) Amount paid to retire (22 ) Gain on extinguishment of debt, pre-tax $ 64 |
6100 - Contingencies and Commit
6100 - Contingencies and Commitments | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Contingencies and Commitments | |
Commitments and Contingencies Disclosure [Text Block] | 11.Contingencies and Commitments Regulatory and Litigation Matters In the ordinary course of its business, LNC and its subsidiaries are involved in various pending or threatened legal proceedings, including purported class actions, arising from the conduct of business.In some instances, these proceedings include claims for unspecified or substantial punitive damages and similar types of reliefin addition to amounts for alleged contractual liability or requests for equitable relief.After consultation with legal counsel and a review of available facts, it is managements opinion that these proceedings, after consideration of any reserves and rights to indemnification, ultimately will be resolved without materially affecting the consolidated financial position of LNC.However, given the large and indeterminate amounts sought in certain of these proceedings and the inherent difficultyin predicting the outcome of such legal proceedings, including the proceeding described below, it is possible that an adverse outcome in certain matters could be material to our operating results for any particular reporting period. Transamerica Investment Management, LLC and Transamerica Investments Services, Inc. v. Delaware Management Holdings, Inc. (dba Delaware Investments), Delaware Investment Advisers and certain individuals, was filed in the San Francisco County Superior Court on April28, 2005.The plaintiffs are seeking substantial compensatory and punitive damages.The complaint alleges breach of fiduciary duty, breach of duty of loyalty, breach of contract, breach of the implied covenant of good faith and fair dealing, unfair competition, interference with prospective economic advantage, conversion, unjust enrichment and conspiracy, in connection with Delaware Investment Advisers hiring of a portfolio management team from the plaintiffs.We and the individual defendants disputethe allegations and are vigorously defending these actions. Contingencies Rescission of Indemnity Reinsurance for Disability Income Business Included in the business sold to Swiss Re through indemnity reinsurance in 2001 was disability income business.In response to the rescission award of a panel of arbitrators on January 24, 2009, of the underlying reinsurance agreement with Swiss Re, we wrote down our reinsurance recoverable and the corresponding funds withheld liabilityand released the embedded derivative liability related to the funds withheld nature of the reinsurance agreement.The rescission resulted in our being responsible for paying claims on the business and establishing sufficient reserves to support the liabilities.In addition, we would expect to carry out a review of the adequacy of the reserves supporting the liabilities.The rescission did not have a material adverse effect on our results of operations, liquidity or capital resources.We are evaluating our options in light of the ruling by a panel of arbitrators. For the three months ended March 31, 2009, an unfavorable adjustment of $64 million, after-tax, was reflected in segment income from operations within Other Operations, comprised of increases of $78 million to benefits, $15 million to interest credited a |
6110 - Shares
6110 - Shares | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Shares | |
Schedule of Stock by Class and Earnings Per Share Reconciliation Disclosure [Text Block] | 12.Shares and Stockholders Equity The changes in our preferred and common stock (number of shares) were as follows: For the Three For the Six Months Ended Months Ended June 30, June 30, 2009 2008 2009 2008 Series A Preferred Stock Balance as of beginning-of-period 11,565 11,662 11,565 11,960 Conversion into common stock (8 ) - (8 ) (298 ) Balance as of end-of-period 11,557 11,662 11,557 11,662 Common Stock Balance as of beginning-of-period 256,046,103 259,206,033 255,869,859 264,233,303 Common stock issued (1) 46,000,000 - 46,000,000 - Conversion of Series A preferred stock 128 - 128 4,768 Stock compensation/issued for benefit plans 50,610 317,987 246,769 758,723 Retirement of common stock/cancellation of shares (3,824 ) (2,722,398 ) (23,739 ) (8,195,172 ) Balance as of end-of-period 302,093,017 256,801,622 302,093,017 256,801,622 Common stock as of end-of-period: Assuming conversion of preferred stock 302,277,929 256,988,214 302,277,929 256,988,214 Diluted basis 304,162,403 257,825,399 304,162,403 257,825,399 (1) On June22, 2009, we closed on the issuance and sale of 40,000,000 shares of common stock and on June 25, 2009, we closed on the issuance and sale of 6,000,000 shares of common stock, both at a price of $15.00 per shares. Our common and Series A preferred stocks are without par value. A reconciliation of the denominator (number of shares) in the calculations of basic and diluted net income and income from operations per share was as follows: For the Three For the Six Months Ended Months Ended June 30, June 30, 2009 2008 2009 2008 Weighted-average shares, as used in basic calculation 260,085,214 257,785,473 257,834,591 259,368,519 Shares to cover conversion of preferred stock 184,970 186,592 185,005 187,824 Shares to cover non-vested stock 503,548 273,307 504,397 256,615 Average stock options outstanding during the period 294,415 9,199,383 154,634 9,596,842 Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the year) (223,683 ) (8,998,441 ) (117,648 ) (9,411,397 ) Shares repurchaseable from measured but unrecognized stock option expense (4,433 ) (100,707 ) (3,450 ) (85,157 ) Average deferred compensation shares 1,573,741 1,271,413 1,556,369 1,277,542 Weighted-avera |
6120 - Realized Loss
6120 - Realized Loss | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Realized Loss | |
Realized Gain (Loss) [Text Block] | 13.Realized Loss Details underlying realized loss (in millions) reported on our Consolidated Statements of Income (Loss) were as follows: For the Three For the Six Months Ended Months Ended June 30, June 30, 2009 2008 2009 2008 Total realized loss on investments and certain derivative instruments, excluding trading securities (1) $ (158 ) $ (117 ) $ (308 ) $ (158 ) Gain (loss) on certain reinsurance derivative/trading securities (2) (9 ) 1 12 2 Indexed annuity net derivative results (3): Gross gain 9 3 10 11 Associated amortization expense of DAC, VOBA, DSI and DFEL (6 ) (1 ) (6 ) (6 ) Guaranteed living benefits (4): Gross gain (loss) (140 ) 20 (235 ) 38 Associated amortization benefit (expense) of DAC, VOBA, DSI and DFEL 2 (8 ) (18 ) (27 ) Guaranteed death benefits (5): Gross gain (loss) (164 ) - (105 ) 2 Associated amortization benefit (expense) of DAC, VOBA, DSI and DFEL 22 - 14 (1 ) Gain on sale of subsidiaries/businesses 3 2 5 4 Total realized loss $ (441 ) $ (100 ) $ (631 ) $ (135 ) (1) See Realized Loss Related to Investments section in Note 5. (2) Represents changes in the fair value of total return swaps (embedded derivatives) related to various modified coinsurance and coinsurance with funds withheld reinsurance arrangements that have contractual returns related to various assets and liabilities associated with these arrangements.Changes in the fair value of these derivatives are offset by the change in fair value of trading securities in the portfoliosthat support these arrangements. (3) Represents the net difference between the change in the fair value of the SP 500 call options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity products along with changes in the fair value of embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periodsfor our indexed annuity products as required under SFAS 133, amended by SFAS 161 and 157.The six months ended June 30, 2008, includes a $10 million gain from the initial impact of adopting SFAS 157. (4) Represents the net difference in the change in fair value of the embedded derivative liabilities of our GLB products and the change in the fair value of the derivative instruments we own to hedge, including the cost of purchasing the hedging instruments.The six months ended June 30, 2008, includes a $34 million loss from the initial impact of adopting SFAS 157. (5) Represents the change in the fair value of the derivatives used to hedge our GDB riders. |
6130 - Pension and Other Postre
6130 - Pension and Other Postretirement Benefit Plans | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Pension and Other Postretirement Benefit Plans | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 14.Pension and Other Postretirement Benefit Plans The components of net defined benefit pension plan and other postretirement benefit plan expense (in millions) were as follows: For the Three Months Ended June 30, Pension Benefits Other Postretirement Benefits 2009 2008 2009 2008 U.S. Plans Service cost $ 1 $ - $ 1 $ 1 Interest cost 15 15 2 2 Expected return on plan assets (14 ) (20 ) (1 ) - Recognized net actuarial (gain) loss 7 - - (1 ) Net periodic benefit expense (recovery) $ 9 $ (5 ) $ 2 $ 2 For the Six Months Ended June 30, Pension Benefits Other Postretirement Benefits 2009 2008 2009 2008 U.S. Plans Service cost $ 2 $ - $ 2 $ 1 Interest cost 31 30 4 4 Expected return on plan assets (28 ) (39 ) (1 ) (1 ) Recognized net actuarial (gain) loss 14 1 (1 ) (1 ) Net periodic benefit expense (recovery) $ 19 $ (8 ) $ 4 $ 3 |
Based Incentive Compensation Pl
Based Incentive Compensation Plans | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Stock-Based Incentive Compensation Plans | |
Stock-Based Incentive Compensation Plans | 15.Stock-Based Incentive Compensation Plans We sponsor various incentive plans for our employees, agents, directors and our subsidiaries that provide for the issuance of stock options, stock incentive awards, stock appreciation rights, restricted stock awards, restricted stock units (performance shares) and deferred stock units.DIUS has a separate stock-based incentivecompensation plan, which has DIUS stock underlying the awards. In the second quarter of 2009, a performance period from 2009-2011 was approved for our executive officers by the Compensation Committee. The award for executive officers participating in this performance period consists of LNC restricted stock units representing approximately 27%, LNC stock options representing approximately 40% andperformance cash awards representing approximately 33% of the total award. LNC stock options granted for this performance period vest ratably over the three-year period, based solely on a service condition. DIUS restricted stock units granted for this performance period vest ratably over a four-year period, based solely on a service condition and were granted only to employees of DIUS.Under the 2009-2011 plan, a total of 618,312 LNC stock options were granted; 243,313 DIUS restricted stockunits were granted; and 477,257 LNC restricted stock units were granted during the six months ended June 30, 2009.See Note 19 for information regarding certain restrictions that have arisen subsequent to June 30, 2009, which may impact our stock-based incentive plans. In addition to the stock-based grants noted above, various other LNC stock-based awards were granted in the three and six months ended June 30, 2009, which are summarized as follows: For the For the Three Six Months Months Ended Ended June 30, June 30, 2009 2009 Awards 10-year LNC stock options 487,593 487,593 Non-employee director stock options 39,240 84,901 Non-employee agent stock options 130,719 130,719 Restricted stock 477,257 579,053 Performance shares - 48,840 Stock appreciation rights 117,451 117,451 |
6150 - Financial Instruments Ca
6150 - Financial Instruments Carried at Fair Value | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Financial Instruments Carried at Fair Value | |
Fair Value Disclosures [Text Block] | 16.Fair Value of Financial Instruments The carrying values and estimated fair values of our financial instruments (in millions) were as follows: As of June 30, 2009 As of December 31, 2008 Carrying Fair Carrying Fair Value Value Value Value Assets Available-for-sale securities: Fixed maturities $ 55,050 $ 55,050 $ 48,141 $ 48,141 Equity 236 236 254 254 Trading securities 2,317 2,317 2,333 2,333 Mortgage loans on real estate 7,468 7,344 7,715 7,424 Derivative instruments 1,234 1,234 3,397 3,397 Other investments 1,187 1,187 1,624 1,624 Cash and invested cash 2,539 2,539 5,754 5,754 Liabilities Future contract benefits: Remaining guaranteed interest and similar contracts (294 ) (294 ) (782 ) (782 ) Embedded derivative instruments - living benefits (1,072 ) (1,072 ) (2,904 ) (2,904 ) Other contract holder funds: Account value of certain investment contracts (22,887 ) (22,023 ) (21,974 ) (22,372 ) Reinsurance related derivative assets 46 46 31 31 Short-term debt (1) (455 ) (449 ) (815 ) (775 ) Long-term debt (4,775 ) (3,939 ) (4,731 ) (2,909 ) Off-Balance-Sheet Guarantees - - - (1 ) (1) Difference between the carrying value and fair value of short-term debt as of June 30, 2009 and December 31, 2008, relate to current maturities of long-term debt. Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value.Considerable judgment is required to develop these assumptions used to measure fair value.Accordingly, the estimates shown are not necessarily indicative of theamounts that would be realized in a one-time, current market exchange of all of our financial instruments. Mortgage Loans on Real Estate The fair value of mortgage loans on real estate is established using a discounted cash flow method based on credit rating, maturity and future income.The ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt service coverage, loan to value, quality of tenancy, borrower andpayment record.The fair value for impaired mortgage loans is based on the present value of expected future cash flows discounted at the loans effective interest rate, the loans market price, or the fair value of the collateral if the loan is collateral dependent. Other Investments and Cash and Invested Cash The carrying value of our assets classifi |
6160 - Segment Information
6160 - Segment Information | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Segment Information | |
Segment Reporting Disclosure [Text Block] | 17.Segment Information We provide products and services in three operating businesses:Retirement Solutions; Insurance Solutions; and Investment Management, and report results through five business segments.We also have Other Operations, which includes the financial data for operations that are not directly related tothe business segments.Our reporting segments reflect the manner by which our chief operating decision makers view and manage the business.The following is a brief description of these segments and Other Operations. Retirement Solutions The Retirement Solutions business provides its products through two segments:Annuities and Defined Contribution.The Retirement Solutions Annuities segment provides tax-deferred investment growth and lifetime income opportunities for its clients by offering individual fixed annuities, includingindexed annuities and variable annuities.The Retirement Solutions Defined Contribution segment provides employer-sponsored variable and fixed annuities and mutual-fund based programs in the 401(k), 403(b) and 457 marketplaces. Insurance Solutions The Insurance Solutions business provides its products through two segments:Life Insurance and Group Protection.The Insurance Solutions Life Insurance segment offers wealth protection and transfer opportunities through term insurance, a linked-benefit product (which is a UL policy linked withriders that provide for long-term care costs) and both single and survivorship versions of UL and VUL, including corporate-owned UL and VUL insurance and bank-owned UL and VUL insurance products.The Insurance Solutions Group Protection segment offers group life, disability and dental insurance to employers, and its products are marketed primarily through a national distribution system of regional group offices.These offices develop business through employee benefit brokers, third-partyadministrators and other employee benefit firms. Investment Management The Investment Management segment, through Delaware Investments, provides a broad range of managed account portfolios, mutual funds, sub-advised funds and other investment products to individual investors and to institutional investors such as private and public pension funds, foundations and endowment funds.Delaware Investments is the marketing name for Delaware Management Holdings,Inc. and its affiliates. Other Operations Other Operations includes investments related to the excess capital in our insurance subsidiaries, investments in media properties and other corporate investments, benefit plan net assets, the unamortized deferred gain on indemnity reinsurance related to the sale of reinsurance to Swiss Re in 2001 and external debt.We are actively managing our remaining radio station clusters to maximize performance and future value.Other Operations also includes the Institutional Pension business, which is a closed-block of pension business, the majority of which was sold on a group annuity basis, and is currently in run-off; and the results of certain disability income business due to the rescission of this business previously sold to Swiss Re. Segment operating revenues and income (loss) from operations are |
6170 - Supplemental Disclosures
6170 - Supplemental Disclosures of Cash Flow | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Supplemental Disclosures of Cash Flow | |
Cash Flow, Supplemental Disclosures [Text Block] | 18.Supplemental Disclosures of Cash Flow The following summarizes our supplemental cash flow data (in millions): For the Six Months Ended June 30, 2009 2008 Significant non-cash investing and financing transactions: Business dispositions: Assetsdisposed(includes cash and invested cash) $ (2 ) $ (732 ) Liabilitiesdisposed 2 127 Cash received - 647 Realized gain on disposal - 42 Estimated gain on net assets held-for-sale in prior periods - (54 ) Loss on dispositions $ - $ (12 ) Sale of subsidiaries/businesses: Proceeds from sale of subsidiaries/businesses, reported as gain on sale of subsidiaries/businesses $ 5 $ 4 |
6180 - Subsequent Event
6180 - Subsequent Event | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Subsequent Event | |
Subsequent Event | 19.Subsequent Event On July 10, 2009, in connection with the Troubled Asset Relief Program (TARP) Capital Purchase Program (CPP), established as part of the Emergency Economic Stabilization Act of 2008 (EESA), we issued and sold to the U.S. Treasury 950,000 shares of Series B preferred stock together with a related warrant to purchaseup to 13,049,451 shares of our common stock at an exercise price of $10.92 per share, in accordance with the terms of the TARP CPP, for an aggregate purchase price of $950 million.Holders of this Series B preferred stock are entitled to a cumulative cash dividend at the annual rate per share of 5% of the liquidation preference, $1,000 per share, or $48 million annually, for the first five years from issuance.We are currently evaluating the financial statement presentation of these instruments.After July 10, 2014, if the preferred shares are still outstanding, the annual dividend rate will increase to 9% per year.The warrant will expire on July 10, 2019. As required under the TARP CPP dividend payments on, and repurchases of, the companys outstanding preferred and common stock are subject to certain restrictions (unless the U.S. Treasury consents).In addition to these restrictions, in connection with this arrangement, the company will comply with enhancedcompensation restrictions for certain executives and employees.Additionally, any increase in the quarterly common stock dividend for the next three years will require the consent of the U.S. government while our obligations under the CPP remain outstanding. |
Document Information
Document Information | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Document Period End Date | 2009-06-30 |
Amendment Flag | false |
Amendment Description | none |
Entity Information
Entity Information (USD $) | |||
6 Months Ended
Jun. 30, 2009 | Feb. 20, 2009
| Jun. 30, 2008
| |
Entity Information [Line Items] | |||
Entity Registrant Name | Lincoln National Corporation | ||
Entity Central Index Key | 0000059558 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $11,600,000,000 | ||
Entity Common Stock, Shares Outstanding | 256,042,499 |