Segment Information (Tables)

12 Months Ended

Dec. 31, 2011

Segment Information

Reconciliation of Assets from Segment to Consolidated (Table)

	December 31,
	2011		2010
	(in millions)
Assets:
Retirement and Investor Services	$	109,481.8	$	110,043.0
Principal Global Investors		1,833.3		1,308.1
Principal International		15,662.8		12,774.5
U.S. Insurance Solutions		17,790.9		16,558.2
Corporate		3,529.2		4,947.3
Total consolidated assets	$	148,298.0	$	145,631.1

Reconciliation of Operating Revenues and Operating Earnings (Losses) by Segment (Table)

	For the year ended December 31,
	2011			2010			2009
	(in millions)
Operating revenues by segment:
Retirement and Investor Services	$	4,074.1		$	4,124.4		$	4,041.5
Principal Global Investors		546.3			481.4			439.4
Principal International		909.5			779.9			562.1
U.S. Insurance Solutions		2,984.4			2,775.1			2,812.6
Corporate		(189.2	)		(118.9	)		(143.4	)
Total segment operating revenues		8,325.1			8,041.9			7,712.2
Net realized capital losses, net of related revenue adjustments		(221.8	)		(286.4	)		(473.2	)
Exited group medical insurance business		606.3			1,403.9			1,610.6
Terminated commercial mortgage securities issuance operation		—			(0.8	)		(0.5	)
Total revenues per consolidated statements of operations	$	8,709.6		$	9,158.6		$	8,849.1
Operating earnings (loss) by segment, net of related income taxes:
Retirement and Investor Services	$	581.1		$	584.4		$	510.4
Principal Global Investors		74.0			58.5			38.2
Principal International		154.0			136.9			118.9
U.S. Insurance Solutions		215.9			193.7			204.1
Corporate		(146.9	)		(128.7	)		(138.3	)
Total segment operating earnings, net of related income taxes		878.1			844.8			733.3
Net realized capital losses, as adjusted (1)		(148.3	)		(194.2	)		(213.4	)
Other after-tax adjustments (2)		(47.8	)		15.7			69.8
Net income available to common stockholders per consolidated statements of operations	$	682.0		$	666.3		$	589.7

(1)

Net realized capital losses, as adjusted, is derived as follows:

	For the year ended December 31,
	2011			2010			2009
	(in millions)
Net realized capital losses:
Net realized capital losses	$	(122.3	)	$	(191.5	)	$	(398.3	)
Certain derivative and hedging-related adjustments		(98.8	)		(90.0	)		(69.0	)
Certain market value adjustments to fee revenues		(0.1	)		(3.4	)		(1.5	)
Recognition of front-end fee revenues		(0.6	)		(1.5	)		(4.4	)
Net realized capital losses, net of related revenue adjustments		(221.8	)		(286.4	)		(473.2	)
Amortization of deferred policy acquisition and sales inducement costs		(31.5	)		(25.2	)		156.4
Capital gains distributed		(3.1	)		(12.0	)		(19.8	)
Certain market value adjustments of embedded derivatives		65.6			7.2			11.8
Net realized capital (gains) losses associated with exited group medical insurance business		(0.2	)		3.0			0.5
Noncontrolling interest capital gains		(31.6	)		(11.6	)		(18.6	)
Income tax effect		74.3			130.8			129.5
Net realized capital losses, as adjusted	$	(148.3	)	$	(194.2	)	$	(213.4	)

(2)

In 2011, other after-tax adjustments included (1) the negative effect resulting from (a) the impact of a court ruling on some uncertain tax positions ($68.9 million), (b) a contribution made to The Principal Financial Group Foundation, Inc. ($19.5 million) and (c) our estimated obligation associated with Executive Life of New York's liquidation petition ($10.3 million) and (2) the positive effect of gains associated with our exited group medical insurance business that does not yet qualify for discontinued operations accounting treatment under U.S. GAAP ($50.9 million).

• In 2010, other after-tax adjustments included (1) the positive effect of gains associated with our exited group medical insurance business that does not yet qualify for discontinued operations accounting treatment under U.S. GAAP ($24.0 million) and (2) the negative effect resulting from: (a) the tax impact of healthcare reform, which eliminates the tax deductibility of retiree prescription drug expenses related to our employees incurred after 2012 ($7.8 million) and (b) losses associated with our terminated commercial mortgage securities issuance operation that has been exited but does not qualify for discontinued operations accounting treatment under U.S. GAAP ($0.5 million).

  In 2009, other after-tax adjustments included the positive effect of gains associated with our exited group medical insurance business that does not yet qualify for discontinued operations accounting treatment under U.S. GAAP ($70.5 million) and the negative effect of losses associated with our terminated commercial mortgage securities issuance operation that has been exited but does not qualify for discontinued operations accounting treatment under U.S. GAAP ($0.7 million).

Reconciliation of Income Tax Expense (Benefit) by Segment (Table)

	For the year ended December 31,
	2011			2010			2009
	(in millions)
Income tax expense by segment:
Retirement and Investor Services	$	173.7		$	170.5		$	144.2
Principal Global Investors		41.0			33.7			21.0
Principal International		4.0			(0.4	)		0.5
U.S. Insurance Solutions		101.6			91.5			97.8
Corporate		(72.9	)		(61.4	)		(71.4	)
Total segment income taxes from operating earnings		247.4			233.9			192.1
Tax benefit related to net realized capital losses, as adjusted		(74.3	)		(130.8	)		(129.5	)
Tax expense related to other after-tax adjustments		63.3			21.0			37.5
Total income tax expense per consolidated statements of operations	$	236.4		$	124.1		$	100.1

Operating Revenue for Products and Services by Segment (Table)

	For the year ended December 31,
	2011			2010			2009
	(in millions)
Retirement and Investor Services:
Full-service accumulation	$	1,337.1		$	1,336.4		$	1,283.9
Principal Funds		560.4			507.3			445.3
Individual annuities		1,119.2			1,018.6			945.6
Bank and trust services		100.5			91.8			83.9
Eliminations		(111.8	)		(100.3	)		(89.1	)
Total Accumulation		3,005.4			2,853.8			2,669.6
Investment only		508.0			643.4			796.0
Full-service payout		560.7			627.2			575.9
Total Guaranteed		1,068.7			1,270.6			1,371.9
Total Retirement and Investor Services		4,074.1			4,124.4			4,041.5
Principal Global Investors (1)		546.3			481.4			439.4
Principal International		909.5			779.9			562.1
U.S. Insurance Solutions:
Individual life insurance		1,476.5			1,361.5			1,358.0
Specialty benefits insurance		1,507.9			1,413.6			1,454.6
Total U.S. Insurance Solutions		2,984.4			2,775.1			2,812.6
Corporate		(189.2	)		(118.9	)		(143.4	)
Total operating revenues	$	8,325.1		$	8,041.9		$	7,712.2
Total operating revenues	$	8,325.1		$	8,041.9		$	7,712.2
Net realized capital losses (except periodic settlements and accruals on non-hedge derivatives), including recognition of front-end fee revenues and certain market value adjustments to fee revenues		(221.8	)		(286.4	)		(473.2	)
Exited group medical insurance business		606.3			1,403.9			1,610.6
Terminated commercial mortgage securities issuance operation		—			(0.8	)		(0.5	)
Total revenues per consolidated statements of operations	$	8,709.6		$	9,158.6		$	8,849.1

(1)

Reflects inter-segment revenues of $212.2 million, $203.1 million and $195.4 million in 2011, 2010 and 2009, respectively. These revenues are eliminated within the Corporate segment.