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UNITED
STATES
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SECURITIES
AND EXCHANGE COMMISSION
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Washington,
D.C. 20549
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FORM
11-K
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FOR
ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS
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AND
SIMILAR PLANS PURSUANT TO SECTION 15 (d) OF
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THE
SECURITIES EXCHANGE ACT OF 1934
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(Mark
One)
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ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES
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EXCHANGE
ACT OF 1934
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For
the fiscal year ended December 31, 2007
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OR
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TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
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SECURITIES
EXCHANGE ACT OF 1934
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For
the transition period from ________ to ________
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Commission
File Number 1-6028
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A.
Full title of the plan and the address of the plan, if different
from that of the issuer named below:
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LINCOLN
NATIONAL CORPORATION EMPLOYEES’ SAVINGS AND PROFIT-SHARING
PLAN
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B. Name
of issuer of the securities held pursuant to the plan and the address of
its principal executive office:
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Lincoln
National Corporation
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150
N. Radnor Road
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Radnor,
PA 19087-5238
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REQUIRED
INFORMATION
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Financial
statements and schedule for the Lincoln National Corporation Employees’
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.
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Lincoln
National Corporation
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Employees'
Savings and Profit-Sharing Plan
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Financial
Statements and Suplemental Schedule
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December
31, 2007 and 2006 and for the years then ended
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with
Report of Independent Registered Public Accounting
Firm
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Lincoln
National Corporation
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Employees'
Savings and Profit-Sharing Plan
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Financial
Statements and Supplemental Schedule
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December
31, 2007 and 2006 and for the years then ended
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Contents
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Report
of Independent Registered Public Accounting Firm
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Audited
Financial Statements:
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Statements
of Net Assets Available for Plan Benefits
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Statements
of Changes in Net Assets Available for Plan Benefits
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Notes
to Financial Statements
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Supplemental
Schedule:
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Schedule
H, Line 4i - Schedule of Assets (Held at End of Year)
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Report of Independent Registered Public Accounting
Firm
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Lincoln
National Corporation Benefits Committee
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Lincoln
National Corporation
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We
have audited the accompanying statements of net assets available for plan
benefits of the Lincoln National Corporation Employees’ Savings and
Profit-Sharing Plan as of December 31, 2007 and 2006, and the related
statements of changes in net assets available for plan benefits for the
years then ended. 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.
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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.
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In
our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the
Plan at December 31, 2007 and 2006, and the changes in its net assets
available for plan benefits for the years then ended, in conformity with
U.S. generally accepted accounting principles.
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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, 2007, 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.
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| Philadelphia, Pennsylvania |
/s/
Ernst & Young LLP
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June
25, 2008
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Lincoln National Corporation
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Employees'
Savings and Profit-Sharing Plan
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Statements
of Net Assets Available for Plan Benefits
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December
31
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2007
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2006
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Assets
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Investments:
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Common
stock account
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$ | 160,745,872 | $ | 201,411,463 | ||||
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Pooled
separate accounts
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510,625,273 | 438,630,460 | ||||||
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Investment
contract
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69,015,158 | 72,185,713 | ||||||
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Participant
loans
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13,153,228 | 11,768,379 | ||||||
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Total
investments
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753,539,531 | 723,996,015 | ||||||
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Accrued
interest receivable
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249,812 | 253,435 | ||||||
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Cash
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16,189 | 9,845 | ||||||
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Contributions
receivable from participant deferrals
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85,214 | 357,457 | ||||||
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Contributions
receivable from participating employer
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2,775,314 | 22,677,237 | ||||||
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Due
from broker
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- | 1,404,540 | ||||||
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Total
assets
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756,666,060 | 748,698,529 | ||||||
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Liabilities
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Due
to broker
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77,502 | - | ||||||
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Net
assets available for plan benefits
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$ | 756,588,558 | $ | 748,698,529 | ||||
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See
accompanying notes.
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Lincoln National Corporation
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Employees'
Savings and Profit-Sharing Plan
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Statements
of Changes in Net Assets Available for Plan Benefits
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Year
Ended December 31
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2007
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2006
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Additions
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Investment
income:
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Cash
dividends--Lincoln National Corporation
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$ | 4,412,777 | $ | 4,293,587 | ||||
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Interest--The
Lincoln National Life Insurance Company
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2,986,031 | 2,832,473 | ||||||
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Interest
on participant loans
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953,532 | 725,260 | ||||||
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Total
investment income
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8,352,340 | 7,851,320 | ||||||
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Contributions:
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Participants
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46,638,520 | 35,981,293 | ||||||
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Rollovers
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4,770,955 | 1,943,831 | ||||||
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Participating
employer
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19,040,626 | 33,660,390 | ||||||
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Total
contributions
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70,450,101 | 71,585,514 | ||||||
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Net
realized and unrealized appreciation
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in
fair value of investments
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16,090,750 | 80,886,402 | ||||||
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Transfers
from affiliated plans, net
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36,541 | 204,186 | ||||||
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Deposit
from Jefferson-Pilot 401(k) Plan
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- | 156,539,734 | ||||||
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Total
additions
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94,929,732 | 317,067,156 | ||||||
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Deductions
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Distributions
to participants
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(86,717,537 | ) | (71,479,909 | ) | ||||
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Administrative
expenses
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(322,166 | ) | (284,463 | ) | ||||
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Total
deductions
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(87,039,703 | ) | (71,764,372 | ) | ||||
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Net
increase in assets available for plan benefits
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7,890,029 | 245,302,784 | ||||||
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Net
assets available for plan benefits at beginning of the
year
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748,698,529 | 503,395,745 | ||||||
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Net
assets available for plan benefits at end of the year
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$ | 756,588,558 | $ | 748,698,529 | ||||
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See
accompanying notes.
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Lincoln National Corporation
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Employees'
Savings and Profit-Sharing Plan
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Notes
to Financial Statements
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December
31, 2007
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1.
Description of the Plan
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The
following description of the Plan is a summary only and is qualified in
its entirety by the terms and provisions of the Plan document
itself.
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The
Lincoln National Corporation Employees’ Savings and Profit-Sharing Plan
(“Plan”) is a contributory, defined contribution plan which covers
substantially all employees of Lincoln National Corporation ("LNC") and
certain of its subsidiaries (“Employer”) who meet the conditions of
eligibility to participate as defined by the
Plan. Effective April 3, 2006, LNC acquired
Jefferson-Pilot Financial Corporation ("JPC"). JPC sponsored a
401(k) plan for their eligible employees ("Legacy JP
Employees"). On May 31, 2006, LNC's chief executive officer
approved the transfer of assets from the accounts of Legacy JP Employees
to new accounts established for them in the Plan, as part of the merger of
the JPC 401(k) plan with this Plan, consistent with the requirements of
Section 401(a) of the Internal Revenue Code of 1986, as
amended. Effective June 1, 2006, the Plan was amended to allow
Legacy JP Employees to participate in the Plan. The merger of
the JPC 401(k) plan into the Plan increased the net assets of the Plan by
$156.5 million. Also effective June 1, 2006, the Plan was amended to
increase the rate at which participants may make pre-tax
contributions
to the Plan to not more than 50% of eligible earnings (and a
minimum of 1%) - subject to applicable Internal Revenue Service ("IRS")
and other Plan limits (9% for highly compensated employees, as defined in
the Plan). Previously, the Plan limit was 25% of eligible
earnings, subject to applicable IRS and other Plan limits. The
Plan is subject to the provisions of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA").
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In
addition to each participant's pre-tax contributions, Employer-matching
contributions to the Plan are provided in the form of a basic match of
$0.50 for each dollar a participant contributes, not to exceed 6% of
eligible earnings per pay period. In addition, the Employer may
contribute an annual discretionary match of up to $1.00 for each dollar
contributed by an eligible participant, not to exceed 6% of eligible
earnings. The discretionary match is determined at the sole discretion of
the LNC Board of Directors. Investment of these matching
contributions are directed by the participant. Participants employed on
the last day of the Plan year are eligible to receive the discretionary
match, as are participants who retired, died, became
disabled, or whose job was eliminated during the Plan year. The
amount of the discretionary matching contribution varies according to
whether LNC has met certain performance-based criteria, as determined by
the Compensation Committee of LNC's Board of Directors.
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Participants’
pre-tax, other contributions, and earnings thereon are fully vested at all
times. Employer contributions vest based upon years of service
as defined in the Plan document as follows:
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Years of Service
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Percent Vested
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1
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0%
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2
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50%
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3
or more
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100%
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As
a result of changes in participants’ employment status, $36,541 was
transferred from an affiliated Lincoln Life plan during 2007 (net) and
$204,186 was transferred from an affiliated Lincoln Life plan during 2006
(net).
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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 2006 Plan year, deposited in 2007, were invested in
accordance with Participant's investment
elections.
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Lincoln
National Corporation
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Employees'
Savings and Profit-Sharing Plan
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Notes
to Financial Statements (continued)
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1.
Description of the Plan (continued)
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The
Employer has the right to discontinue contributions and to terminate the
Plan at any time subject to the provisions of ERISA. In the
event of Plan termination, all non-vested amounts allocated to participant
accounts would become fully vested.
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Participants
have the option of either receiving payment of dividends earned with
respect to shares in the LNC Common Stock Account or having the dividends
reinvested in the LNC Common Stock Account.
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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 participants' accounts, less the highest outstanding loan balance
in the previous 12-month period. Interest charged on new loans to
participants is established monthly based upon the prime rate plus 1%.
Loans may be repaid over any period selected by the participant up to a
maximum repayment period of 5 years except that the maximum repayment
period may be 20 years for the purchase of a principal
residence.
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Upon
termination of service due to disability, retirement, or job elimination,
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 case 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.
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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. Forfeitures of $458,779 and $388,596
were used to offset contributions in 2007 and 2006,
respectively. Unallocated forfeitures were $533,873 and
$366,585 at December 31, 2007 and 2006, respectively.
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2.
Summary of Significant Accounting Policies
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Investments
Valuation and Income Recognition
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The
investment in 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.
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The
Wells Fargo Bank Short-Term Investment Account, which is included in the
LNC Common Stock Account, is valued at cost, which approximates fair
value.
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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.
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Lincoln
National Corporation
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Employees'
Savings and Profit-Sharing Plan
|
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Notes
to Financial Statements (continued)
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2.
Summary of Significant Accounting Policies (continued)
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The
investment contract is valued at contract value as estimated by Lincoln
Life. As described in Financial Accounting Standards Board
("FASB") Staff Position, ("FSP"), FSP AAG INV-1 and Statement of Position
("SOP"), 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,
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.
The Plan's contract values, which represent net contributions plus
interest at the contract rate, approximate fair value. The
contracts are fully benefit-responsive.
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Participant
loans are valued at their outstanding balances, which approximate fair
value.
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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.
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Interest
and dividend income is recorded when earned.
|
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Reclassifications
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Certain
amounts reported in prior periods' financial statements have been
reclassified to conform to the presentation adopted in the current
year. These reclassifications have no effect on net assets
available for plan benefits of the prior period.
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Accounting
Estimates and Assumptions
|
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The
accompanying financial statements are prepared in accordance with United
States of America generally accepted accounting principles that requires
management to make estimates and assumptions affecting the amounts
reported in the financial statements and accompanying
notes. Those estimates are inherently subject to change and
actual results could differ from those estimates.
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New
Accounting Pronouncement
|
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In
September 2006, the FASB issued Statement of Financial Accounting
Standards No. 157, Fair
Value Measurements ("SFAS 157"). SFAS 157 defines fair value,
establishes a framework for measuring fair value, and expands disclosures
about fair value measurements. SFAS 157 is effective for accounting
periods beginning after November 15, 2007. The Plan's management is
currently evaluating the impact, if any, that the adoption of SFAS 157
will have on the Plan’s 2008 financial
statements.
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Lincoln
National Corporation
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Employees'
Savings and Profit-Sharing Plan
|
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Notes
to Financial Statements (continued)
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3.
Investments
|
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The
fair value of individual investments that represent 5% or more of the
Plan's net assets are as follows:
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December
31, 2007
|
December
31, 2006
|
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Number
of
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Number
of
|
|||||||||||||||
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Shares,
Units,
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Fair
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Shares,
Units,
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Fair
|
|||||||||||||
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or
Par Value
|
Value
|
or
Par Value
|
Value
|
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Common
stock---Lincoln
|
||||||||||||||||
|
National
Corporation
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2,676,381.000 | $ | 155,818,902 | 2,974,530.000 | $ | 197,508,792 | ||||||||||
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Pooled
separate accounts--Lincoln Life:
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Core
Equity Account
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2,366,380.018 | 41,494,473 | 2,512,599.852 | 41,702,373 | ||||||||||||
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Short
Term Account
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10,224,016.199 | 42,343,786 | 9,653,756.276 | 38,133,303 | ||||||||||||
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Fidelity
VIP Contrafund Account
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20,348,158.862 | 38,793,765 | 17,105,794.458 | 27,793,495 | * | |||||||||||
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Investment
contracts--Lincoln Life
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$ | 69,015,158 | 69,015,158 | $ | 72,185,713 | 72,185,713 | ||||||||||
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*
Individual investment does not represent 5% or more of the Plan's assets
but is presented for comparative purposes.
|
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The
investment contracts (Guaranteed Fund) earned an average interest rate of
approximately 4.0% in both years. The credited interest rates
for new contributions, which approximate the current market rate, were
4.0% at both December 31, 2007 and 2006. 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, 2007 and 2006, 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.
|
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During
2007 and 2006, the Plan's investments (including investments bought, sold,
as well as held during the year) appreciated in fair value as
follows:
|
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2007
|
2006
|
|||||||
|
Common
stock
|
$ | (21,545,778 | ) | $ | 39,277,969 | |||
|
Pooled
separate accounts
|
37,636,528 | 41,608,433 | ||||||
|
Total
|
$ | 16,090,750 | $ | 80,886,402 | ||||
|
The
fair value was determined based on quoted market prices.
|
||||||||
|
Lincoln
National Corporation
|
|||
|
Employees'
Savings and Profit-Sharing Plan
|
|||
|
Notes
to Financial Statements (continued)
|
|||
|
4.
Reconciliation to Form 5500
|
|||
|
The
following is a reconciliation of net assets available for distributions
per the financial statements to the Form
5500:
|
|||
|
December
31
|
||||||||
|
2007
|
2006
|
|||||||
|
Net
assets available for benefits per the financial statements
|
$ | 756,588,558 | $ | 748,698,529 | ||||
|
Amounts
allocated to withdrawn participants
|
(21,118 | ) | (93,685 | ) | ||||
|
Net
assets available for benefits per the Form 5500
|
$ | 756,567,440 | $ | 748,604,844 | ||||
|
The
following is a reconciliation of distributions to participants per the
financial statements to the Form 5500:
|
|||
|
Year
Ended
|
||||
|
December
31
|
||||
|
2007
|
||||
|
Distributions
to participants per the financial statements
|
$ | 86,717,537 | ||
|
Plus: Amounts
allocated to
|
||||
|
withdrawn
participants at year-end
|
21,118 | |||
|
Less: Amounts
allocated to
|
||||
|
withdrawn
participants at prior year-end
|
(93,685 | ) | ||
|
Benefits
paid to participants per the Form 5500
|
$ | 86,644,970 | ||
|
Amounts
allocated to withdrawn participants are recorded on the Form 5500 for
benefit payments that have been processed and approved for payment prior
to year-end but not yet paid.
|
|||
|
5.
Income Tax Status
|
|||
|
The
Plan has received a determination letter from the IRS dated April 30,
2004, stating that the Plan is qualified under Section 401(a) of the
Internal Revenue Code (the “Code”) and, therefore, the related trust is
exempt from taxation. Subsequent to this determination by the IRS, the
Plan was amended and restated. Once qualified, the Plan is
required to operate in conformity with the Code to maintain its
qualification. The plan administrator believes the Plan is
being operated in compliance with the applicable requirements of the
Code and, therefore, believes that the Plan, as amended and restated, is
qualified and the related trust is tax-exempt.
|
|||
|
6.
Tax Implications to Participants
|
|||
|
Federal
(and most state) income tax is deferred on participants' pre-tax
contributions, the Employer's contributions, and income earned in the Plan
until actual distribution or withdrawal from the
Plan.
|
|||
|
Lincoln
National Corporation
|
|
Employees'
Savings and Profit-Sharing Plan
|
|
Notes
to Financial Statements (continued)
|
|
7.
Transactions with Parties-in-Interest
|
|
The
Plan has investments in common stock of LNC and in pooled separate
accounts and investment contracts with Lincoln Life. Lincoln
Life charges the Plan for certain administrative expenses including
trustee and audit fees. Total administrative expenses charged
were $322,166 and $284,463 in 2007 and 2006,
respectively.
|
|
8.
Concentrations of Credit Risks
|
|
The
Plan has investments in common stock of LNC, pooled separate accounts, and
unallocated investment contracts with Lincoln Life of $155,818,902,
$510,625,273, and $69,015,158, respectively, at December 31, 2007 (20.59%,
67.49%, and 9.12% of net assets, respectively). The same
investments at December 31, 2006 were $197,508,792, $438,630,460, and
$72,185,713, respectively (26.38%, 58.58%, and 9.64% of net assets,
respectively). LNC and Lincoln Life operate predominately in the insurance
and investment management industries.
|
|
The
Plan invests in various investment securities. Investment
securities are exposed to various risks including, but not limited to,
interest rate, market, and credit risks. Due to the level of
risk associated with certain investment securities, it is at least
reasonably possible that changes in the values of investments will occur
in the near term and that such changes could materially affect
participants’ account balances and the amounts reported in the statements
of net assets available for plan benefits.
|
|
9.
Subsequent Events
|
|
The
new retirement program, which was announced on May 1, 2007, began on
January 1, 2008. For all participants except employees of Delaware
Management Holdings, Inc. and all of its direct or indirect
subsidiaries, the new Plan features will include an increase in the
basic Employer match from $0.50 per each $1.00 that a participant
contributes each pay period, up to 6% of eligible compensation, to $1.00
per each $1.00 that a participant contributes each pay period, up to 6% of
eligible compensation (the 50% match will become a 100% match). For
affected participants, the discretionary Employer match feature will
be eliminated and replaced by a guaranteed "core" Employer contribution of
4% of eligible compensation per pay period. The core Employer
contribution will be paid to every eligible employee of LNC, regardless of
whether the eligible employee elects to defer salary into the
Plan. In addition, certain eligible employees will also qualify for
a "transition" employer contribution between 0.2% and 8.0%
with
a minimum 10-year service requirement for legacy LNC employees, and a
minimum 5-year service requirement for Legacy JP Employees.
Eligibility for transition Employer contributions will be determined
on December 31, 2007 only--participants will not "grow" into transition
credits thereafter. Transition Employer contributions will cease on
January 1, 2018.
|
|
The
Plan spun off the account balances of all Delaware Management Holdings,
Inc. participants, totaling $65.7 million, as of January 1, 2008, to the
Delaware Management Holdings, Inc. Employees' Savings and 401(k)
Plan.
|
|
Lincoln National Corporation
|
|||||
|
Employees'
Savings and Profit-Sharing Plan
|
|||||
|
Plan
Number: 009
|
|||||
|
EIN:
35-0472300
|
|||||
|
Schedule
H, Line 4i – Schedule of Assets (Held At End of Year)
|
|||||
|
December
31, 2007
|
|||||
|
(b)
|
(c)
|
(d)
|
(e)
|
||
|
Description
of Investment
|
|||||
|
Including
Maturity
|
|||||
|
Identity
of Issuer, Borrower,
|
Date,
Rate of Interest,
|
Current
|
|||
|
Lessor, or Similar Party
|
Par, or Maturity
Value
|
Cost
|
Value
|
||
|
*Common
stock:
|
|||||
|
Lincoln
National Corporation
|
|||||
|
Common
Stock
|
2,676,381.000
|
units
|
**
|
$ 155,818,902
|
|
|
Wells
Fargo Bank Short-Term
|
|||||
|
Investment
Account
|
4,926,970.470
|
units
|
**
|
4,926,970
|
|
|
160,745,872
|
|||||
|
*Pooled
separate accounts--The Lincoln
|
|||||
|
National
Life Insurance Company:
|
|||||
|
Core
Equity Account
|
2,366,380.018
|
participation
units
|
**
|
41,494,473
|
|
|
Medium
Capitalization Equity Account
|
1,516,964.787
|
participation
units
|
**
|
25,822,836
|
|
|
Short
Term Account
|
10,224,016.199
|
participation
units
|
**
|
42,343,786
|
|
|
Government/
Corporate Bond Account
|
2,986,205.120
|
participation
units
|
**
|
29,392,022
|
|
|
Large
Capitalization Equity Account
|
2,477,502.267
|
participation
units
|
**
|
27,229,980
|
|
|
Balanced
Account
|
1,652,339.306
|
participation
units
|
**
|
15,574,786
|
|
|
High
Yield Bond Account
|
3,363,072.857
|
participation
units
|
**
|
15,093,471
|
|
|
Small
Capitalization Equity Account
|
2,296,996.403
|
participation
units
|
**
|
22,731,766
|
|
|
Value
Equity Account
|
4,644,250.986
|
participation
units
|
**
|
14,498,887
|
|
|
International
Equity Account
|
2,737,485.991
|
participation
units
|
**
|
34,389,120
|
|
|
Conservative
Balanced Account
|
2,151,189.321
|
participation
units
|
**
|
5,400,345
|
|
|
Aggressive
Balanced Account
|
2,741,152.718
|
participation
units
|
**
|
8,189,741
|
|
|
Delaware
Value Account
|
15,138,017.365
|
participation
units
|
**
|
32,359,026
|
|
|
Scudder
VIT Equity 500 Index Account
|
26,899,896.944
|
participation
units
|
**
|
34,106,380
|
|
|
Fidelity
VIP Contrafund Account
|
20,348,158.862
|
participation
units
|
**
|
38,793,765
|
|
|
Neuberger-Berman
AMT Regency Account
|
4,855,661.482
|
participation
units
|
**
|
8,869,837
|
|
|
Social
Awareness Account
|
3,291,404.872
|
participation
units
|
**
|
4,491,780
|
|
|
American
Funds New Perspective Account
|
11,943,315.447
|
participation
units
|
**
|
17,399,022
|
|
|
Neuberger
Berman Mid-Cap Growth Account
|
20,065,985.375
|
participation
units
|
**
|
34,158,327
|
|
|
Scudder
VIT Small Cap Index Account
|
8,880,679.197
|
participation
units
|
**
|
16,513,623
|
|
|
Blackrock
Legacy Account
|
2,144,349.772
|
participation
units
|
**
|
4,072,978
|
|
|
American
Funds International Account
|
1,668,997.792
|
participation
units
|
**
|
37,699,322
|
|
|
510,625,273
|
|||||
|
*Investment
contracts--The Lincoln
|
|||||
|
National
Life Insurance Company
|
|||||
|
(Guaranteed
Account)
|
4.0%
interest rate
|
**
|
69,015,158
|
||
|
Participant
loans
|
Various
loans at interest rates
|
||||
|
varying
from 5.0% to 12.5%
|
-
|
13,153,228
|
|||
|
$ 753,539,531
|
|||||
|
* Indicates
party-in-interest to the Plan.
|
|||||
|
**
Indicates a participant-directed account. The cost disclosure is not
applicable.
|
|||||
|
SIGNATURE
|
|
|
THE
PLAN: Pursuant to the requirements of the Securities Exchange
Act of 1934, the Administrator of the Lincoln National Corporation
Employees' Savings and Profit-Sharing Plan has duly caused this annual
report to be signed on its behalf by the undersigned hereunto duly
authorized.
|
|
|
Lincoln
National Corporation Employees' Savings and Profit-Sharing
Plan
|
|
|
By:
/s/ William David
|
|
|
Date: June
25, 2008
|
William
David on Behalf of the Lincoln National Corporation Benefits
Committee
|
| Philadelphia, Pennsylvania |
/s/
Ernst & Young LLP
|
|
June
25, 2008
|
|