SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Of Registrant [Abstract]

Condensed financial information of registrant

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LINCOLN NATIONAL CORPORATION

SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT

BALANCE SHEETS

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

	As of December 31,
	2019		2018
ASSETS
Investments in subsidiaries (1)	$	24,029	$	18,251
Derivative investments		-		92
Other investments		382		90
Cash and invested cash		577		420
Loans and accrued interest to subsidiaries (1)		2,446		2,376
Other assets		28		59
Total assets	$	27,462	$	21,288
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Common dividends payable	$	79	$	76
Derivative investments liability		110		-
Short-term debt		300		-
Long-term debt		6,067		5,839
Loans from subsidiaries (1)		844		553
Payables for collateral on investments		6		21
Other liabilities		367		449
Total liabilities		7,773		6,938
Contingencies and Commitments
Stockholders’ Equity
Preferred stock – 10,000,000 shares authorized		-		-
Common stock – 800,000,000 shares authorized		5,162		5,392
Retained earnings		8,854		8,551
Accumulated other comprehensive income (loss)		5,673		407
Total stockholders’ equity		19,689		14,350
Total liabilities and stockholders’ equity	$	27,462	$	21,288

⁽¹⁾Eliminated in consolidation.

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LINCOLN NATIONAL CORPORATION

SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Parent Company Only) (in millions)

	For the Years Ended December 31,
	2019			2018			2017
Revenues
Dividends from subsidiaries (1)	$	830		$	1,025		$	1,069
Interest from subsidiaries (1)		158			148			133
Net investment income		11			7			2
Realized gain (loss)		2			3			(3	)
Total revenues		1,001			1,183			1,201
Expenses
Operating and administrative expenses		51			18			40
Interest – subsidiaries (1)		48			34			21
Interest – other		311			288			247
Total expenses		410			340			308
Income (loss) before federal income taxes, equity in income (loss) of
subsidiaries, less dividends		591			843			893
Federal income tax expense (benefit)		(52	)		(42	)		(20	)
Income (loss) before equity in income (loss) of subsidiaries, less dividends		643			885			913
Equity in income (loss) of subsidiaries, less dividends		243			756			1,166
Net income (loss)		886			1,641			2,079
Other comprehensive income (loss), net of tax:
Unrealized investment gains (losses)		5,288			(3,449	)		1,643
Foreign currency translation adjustment		6			(9	)		13
Funded status of employee benefit plans		(28	)		(7	)		8
Total other comprehensive income (loss), net of tax		5,266			(3,465	)		1,664
Comprehensive income (loss)	$	6,152		$	(1,824	)	$	3,743

⁽¹⁾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 Ended December 31,
	2019			2018			2017
Cash Flows from Operating Activities
Net income (loss)	$	886		$	1,641		$	2,079
Adjustments to reconcile net income (loss) to net cash provided by (used in)
operating activities:
Equity in (income) loss of subsidiaries greater than distributions (1)		(243	)		(756	)		(1,166	)
Realized (gain) loss		(2	)		(3	)		3
Change in federal income tax accruals		24			15			107
Other		106			(27	)		20
Net cash provided by (used in) operating activities		771			870			1,043
Cash Flows from Investing Activities
Capital contribution to subsidiaries (1)		(50	)		(502	)		(60	)
Net change in collateral on investments, derivatives and related settlements		(279	)		89			(42	)
Net cash provided by (used in) investing activities		(329	)		(413	)		(102	)
Cash Flows from Financing Activities
Payment of long-term debt, including current maturities		(308	)		(537	)		-
Issuance of long-term debt, net of issuance costs		744			1,094			-
Payment related to early extinguishment of debt		(42	)		(23	)		-
Increase (decrease) in loans from subsidiaries, net (1)		264			52			(230	)
Increase (decrease) in loans to subsidiaries, net (1)		(70	)		(48	)		239
Common stock issued for benefit plans		(20	)		(6	)		46
Repurchase of common stock		(550	)		(900	)		(725	)
Dividends paid to common stockholders		(303	)		(289	)		(262	)
Net cash provided by (used in) financing activities		(285	)		(657	)		(932	)
Net increase (decrease) in cash, invested cash and restricted cash		157			(200	)		9
Cash, invested cash and restricted cash as of beginning-of-year		420			620			611
Cash, invested cash and restricted cash as of end-of-year	$	577		$	420		$	620

⁽¹⁾ Eliminated in consolidation.