SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2011

Schedule To Financial Statements [Abstract]

Condensed financial information of registrant

LINCOLN NATIONAL CORPORATION

SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT

BALANCE SHEETS

(Parent Company Only) (in millions, except share data)

			As of December 31,
			2011		2010

ASSETS
Investments in subsidiaries⁽¹⁾			$	16,818	$	15,485
Derivative investments				305		55
Other investments				29		135
Cash and invested cash				622		582
Loans and accrued interest to subsidiaries⁽¹⁾				2,605		2,759
Other assets				286		257
	Total assets		$	20,665	$	19,273

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Common and preferred dividends payable			$	23	$	16
Short-term debt				300		350
Long-term debt				5,641		5,649
Loans from subsidiaries⁽¹⁾				58		-
Other liabilities				479		452
	Total liabilities			6,501		6,467

Contingencies and Commitments

Stockholders' Equity
Preferred stock - 10,000,000 shares authorized; Series A				-		-
Common stock - 800,000,000 shares authorized				7,590		8,124
Retained earnings				4,126		3,934
Accumulated other comprehensive income (loss)				2,448		748
	Total stockholders' equity			14,164		12,806
		Total liabilities and stockholders' equity	$	20,665	$	19,273

Eliminated in consolidation.

LINCOLN NATIONAL CORPORATION

SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

STATEMENTS OF INCOME

(Parent Company Only) (in millions)

					For the Years December 31,
					2011		2010		2009
Revenues
Dividends from subsidiaries⁽¹⁾					$	875	$	712	$	767
Interest from subsidiaries⁽¹⁾						125		99		94
Net investment income						2		-		(5)
Realized gain (loss)						(3)		(4)		1
Other revenue						-		5		1
	Total revenues					999		812		858
Expenses
Operating and administrative						2		99		26
Interest - subsidiaries⁽¹⁾						5		6		8
Interest - other						310		290		195
	Total expenses					317		395		229
		Income (loss) before federal income taxes, equity in income (loss) of
			subsidiaries, less dividends			682		417		629
		Federal income tax expense (benefit)				(68)		(106)		(50)
			Income (loss) before equity in income (loss) of subsidiaries, less dividends			750		523		679
			Equity in income (loss) of subsidiaries, less dividends			(456)		457		(1,164)
				Net income (loss)	$	294	$	980	$	(485)

Eliminated in consolidation.

LINCOLN NATIONAL CORPORATION

SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

STATEMENTS OF CASH FLOWS

(Parent Company Only) (in millions)

						For the Years December 31,
						2011		2010		2009
Cash Flows from Operating Activities
Net income (loss)						$	294	$	980	$	(485)
Adjustments to reconcile net income (loss) to net cash provided by
	operating activities:
		Equity in (income) loss of subsidiaries greater than distributions⁽¹⁾					456		(457)		1,164
		Realized (gain) loss					3		4		(1)
		Change in fair value of equity collar					-		-		3
		Change in legal accruals					(70)		70		-
		Change in federal income tax accruals					32		(190)		(69)
		(Gain) loss on early extinguishment of debt					8		5		(64)
		Other					(22)		(22)		(4)
			Net cash provided by (used in) operating activities				701		390		544

Cash Flows from Investing Activities
Purchases of investments							-		-		(50)
Sales or maturities of investments							105		-		37
Capital contribution to subsidiaries⁽¹⁾							(17)		(125)		(1,260)
Proceeds from sale of subsidiaries/businesses, net of cash disposed							-		459		320
			Net cash provided by (used in) investing activities				88		334		(953)

Cash Flows from Financing Activities
Payment of long-term debt, including current maturities							(525)		(405)		(522)
Issuance of long-term debt, net of issuance costs							300		749		788
Increase (decrease) in commercial paper, net							(100)		1		(216)
Increase (decrease) in loans from subsidiaries, net⁽¹⁾							58		(97)		(291)
Increase (decrease) in loans to subsidiaries, net⁽¹⁾							154		(683)		-
Common stock issued for benefit plans and excess tax benefits							1		-		-
Issuance (redemption) of Series B preferred stock and issuance (repurchase
	and cancellation) of associated common stock warrants						-		(998)		950
Issuance of common stock							-		368		652
Repurchase of common stock							(575)		(25)		-
Dividends paid to common and preferred stockholders							(62)		(42)		(79)
			Net cash provided by (used in) financing activities				(749)		(1,132)		1,282

				Net increase (decrease) in cash and invested cash			40		(408)		873
				Cash and invested cash as of beginning-of-year			582		990		117
					Cash and invested cash as of end-of-year	$	622	$	582	$	990

Eliminated in consolidation.

- Definition

This element can be used to encapsulate the entire condensed financial information disclosure, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

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