EX-12 2 a2190573zex-12.htm EX-12

Exhibit 12

 

Principal Financial Group, Inc.

Computation of Earnings to Fixed Charges Ratio

 

The ratio of earnings to fixed charges is a measure of our ability to cover fixed costs with current period earnings. A high ratio indicates that earnings are sufficiently covering committed expenses. The following table sets forth, for the years indicated, our ratios of:

 

·                  earnings to fixed charges before interest credited on investment products and

·                  earnings to fixed charges.

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

 

 

 

 

($ in millions)

 

1.

 

Income from continuing operations before income taxes

 

$

453.6

 

$

1,048.2

 

$

1,331.3

 

$

1,121.6

 

$

878.7

 

2.

 

Interest expense

 

110.3

 

115.3

 

86.0

 

77.8

 

93.5

 

3.

 

Interest factor of rental expense

 

8.8

 

12.3

 

11.1

 

7.0

 

4.6

 

4.

 

Undistributed income from equity investees

 

(20.4

)

(71.6

)

(62.7

)

(34.1

)

(19.4

)

5.

 

Earnings before interest credited on investment products

 

552.3

 

1,104.2

 

1,365.7

 

1,172.3

 

957.4

 

6.

 

Interest credited on investment products

 

993.5

 

988.3

 

901.1

 

832.2

 

763.7

 

7.

 

Earnings

 

$

1,545.8

 

$

2,092.5

 

$

2,266.8

 

$

2,004.5

 

$

1,721.1

 

8.

 

Interest expense

 

$

110.3

 

$

115.3

 

$

86.0

 

$

77.8

 

$

93.5

 

9.

 

Interest factor of rental expense

 

8.8

 

12.3

 

11.1

 

7.0

 

4.6

 

10.

 

Preferred stock dividends by registrant

 

33.0

 

33.0

 

33.0

 

17.7

 

—

 

11.

 

Fixed charges before interest credited on investment products

 

152.1

 

160.6

 

130.1

 

102.5

 

98.1

 

12.

 

Interest credited on investment products

 

993.5

 

988.3

 

901.1

 

832.2

 

763.7

 

13.

 

Fixed charges

 

$

1,145.6

 

$

1,148.9

 

$

1,031.2

 

$

934.7

 

$

861.8

 

14.

 

Ratio of earnings to fixed charges before interest credited on investment products (Line item 5/Line item 11)

 

3.6

 

6.9

 

10.5

 

11.4

 

9.8

 

15.

 

Ratio of earnings to fixed charges (Line item 7/Line item 13)

 

1.3

 

1.8

 

2.2

 

2.1

 

2.0

 

 

 

210