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. On November 30, 2011, we completed the liquidation of NCLS, which did not have a material effect on our consolidated financial condition or results of operations.

On January 4, 2010, we closed on the stock sale of our subsidiary Delaware Management Holdings, Inc. (“Delaware”), which provided investment products and services to individuals and institutions, to Macquarie Bank Limited.

In addition, certain of our subsidiaries, including The Lincoln National Life Insurance Company (“LNL”), our primary insurance subsidiary, entered into investment advisory agreements with Delaware, pursuant to which Delaware will continue to manage the majority of the general account insurance assets of the subsidiaries. The investment advisory agreements have 10-year terms, and we may terminate them without cause, subject to a purchase price adjustment of up to $67 million, the amount of which is dependent on the timing of any termination and which agreements are terminated. The amount of the potential adjustment will decline on a pro rata basis over the 10-year term of the advisory agreements.

				For the Years Ended December 31,
				2011		2010		2009

Revenues
Investment advisory fees - external				$	-	$	-	$	207
Investment advisory fees - internal					-		-		84
Other revenues and fees					-		-		91
Gain (loss) on sale of business					-		4		9
	Total revenues			$	-	$	4	$	391

Discontinued Operations Before Disposal
Income (loss) from discontinued operations before disposal,
	before federal income taxes			$	-	$	(13)	$	37
Federal income tax expense (benefit)					-		(2)		18
		Income (loss) from discontinued operations before disposal			-		(11)		19

Disposal
Gain (loss) on disposal, before federal income taxes					(3)		37		-
Federal income tax expense (benefit)					5		(13)		-
		Gain (loss) on disposal			(8)		24		-
			Income (loss) from discontinued operations	$	(8)	$	13	$	19

The loss from discontinued operations for the year ended December 31, 2011, related to an unfavorable tax return true-up from the prior year. The income from discontinued operations for the year ended December 31, 2010, included final cash received toward the purchase price for certain institutional taxable fixed income business sold during the fourth quarter 2007, and also reflected stock compensation expense attributable to the acceleration of vesting of equity awards for certain Delaware employees upon the sale of Delaware.

On October 1, 2009, we closed on the stock sale of Lincoln National (UK) plc (“Lincoln UK”), our subsidiary, which focused primarily on providing life and retirement income products in the United Kingdom to SLF of Canada UK Limited, and we retained Lincoln UK's pension plan assets and liabilities.

We have reclassified the results of operations of Lincoln UK into income (loss) from discontinued operations, net of federal income taxes, for all periods presented on our Consolidated Statements of Income (Loss), and selected amounts (in millions) were as follows:

				For the Years Ended
				December 31,
				2010		2009

Revenues
Insurance premiums				$	-	$	41
Insurance fees					-		99
Net investment income					-		43
Realized gain (loss)					-		(1)
	Total revenues			$	-	$	182

Discontinued Operations Before Disposal
Income (loss) from discontinued operations before disposal,
	before federal income taxes			$	-	$	38
Federal income tax expense (benefit)					-		13
		Income (loss) from discontinued operations before disposal			-		25

Disposal
Gain (loss) on disposal, before federal income taxes					29		(219)
Federal income tax expense (benefit)					13		(105)
		Gain (loss) on disposal			16		(114)
			Income (loss) from discontinued operations	$	16	$	(89)

The income from discontinued operations for the year ended December 31, 2010, related to an unfavorable tax return true-up from the prior year, partially offset by the estimated transaction cost being lower than anticipated. In addition, the income from discontinued operations for the year ended December 31, 2010, included additional consideration received attributable to a post-closing adjustment of the purchase price based upon a final actuarial appraisal of the value of the business as set forth in the share purchase agreement, partially offset by the items mentioned above.