Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2011

Condensed Consolidating Financial Information

Condensed Consolidating Financial Information, Notes Guarantor (Table)

Condensed Consolidating Statements of Financial Position
December 31, 2011

	Principal Financial Group, Inc. Parent Only			Principal Life Insurance Company Only			Principal Financial Services, Inc. and Other Subsidiaries Combined		Eliminations			Principal Financial Group, Inc. Consolidated
	(in millions)
Assets
Fixed maturities, available-for-sale	$	—		$	43,285.3		$	6,082.4	$	(361.0	)	$	49,006.7
Fixed maturities, trading		268.7			374.8			328.2		—			971.7
Equity securities, available-for-sale		—			73.4			3.7		—			77.1
Equity securities, trading		—			0.3			404.5		—			404.8
Mortgage loans		—			9,271.5			1,831.8		(376.1	)		10,727.2
Real estate		—			9.2			1,084.9		(1.2	)		1,092.9
Policy loans		—			859.3			25.8		—			885.1
Investment in unconsolidated entities		10,447.1			3,116.1			5,300.5		(18,034.2	)		829.5
Other investments		7.0			2,559.0			925.3		(1,332.8	)		2,158.5
Cash and cash equivalents		226.7			1,344.5			1,277.6		(14.9	)		2,833.9
Accrued investment income		1.8			551.1			66.6		(4.3	)		615.2
Premiums due and other receivables		—			1,017.8			827.7		(600.3	)		1,245.2
Deferred policy acquisition costs		—			3,034.5			279.0		—			3,313.5
Property and equipment		—			395.9			61.3		—			457.2
Goodwill		—			54.3			428.0		—			482.3
Other intangibles		—			29.2			861.4		—			890.6
Separate account assets		—			61,615.1			9,749.3		—			71,364.4
Other assets		14.8			668.9			994.6		(736.1	)		942.2
Total assets	$	10,966.1		$	128,260.2		$	30,532.6	$	(21,460.9	)	$	148,298.0
Liabilities
Contractholder funds	$	—		$	37,356.8		$	586.7	$	(267.1	)	$	37,676.4
Future policy benefits and claims		—			16,370.8			3,937.9		(100.8	)		20,207.9
Other policyholder funds		—			514.8			29.0		(0.1	)		543.7
Short-term debt		—			—			105.2		—			105.2
Long-term debt		1,351.7			99.4			504.8		(391.1	)		1,564.8
Income taxes currently payable		(18.6	)		(218.4	)		34.3		205.8			3.1
Deferred income taxes		(22.5	)		403.3			167.2		(14.6	)		533.4
Separate account liabilities		—			61,615.1			9,749.3		—			71,364.4
Other liabilities		18.5			4,293.8			4,590.8		(2,617.0	)		6,286.1
Total liabilities		1,329.1			120,435.6			19,705.2		(3,184.9	)		138,285.0
Stockholders' equity
Series A preferred stock		—			—			—		—			—
Series B preferred stock		0.1			—			—		—			0.1
Common stock		4.5			2.5			—		(2.5	)		4.5
Additional paid-in capital		9,634.7			5,718.1			7,870.2		(13,588.3	)		9,634.7
Retained earnings		5,077.5			1,826.0			2,335.6		(4,161.6	)		5,077.5
Accumulated other comprehensive income		201.9			278.0			241.3		(519.3	)		201.9
Treasury stock, at cost		(5,281.7	)		—			—		—			(5,281.7	)
Total stockholders' equity attributable to PFG		9,637.0			7,824.6			10,447.1		(18,271.7	)		9,637.0
Noncontrolling interest		—			—			380.3		(4.3	)		376.0
Total stockholders' equity		9,637.0			7,824.6			10,827.4		(18,276.0	)		10,013.0
Total liabilities and stockholders' equity	$	10,966.1		$	128,260.2		$	30,532.6	$	(21,460.9	)	$	148,298.0

Condensed Consolidating Statements of Financial Position
December 31, 2010

	Principal Financial Group, Inc. Parent Only			Principal Life Insurance Company Only			Principal Financial Services, Inc. and Other Subsidiaries Combined		Eliminations			Principal Financial Group, Inc. Consolidated
	(in millions)
Assets
Fixed maturities, available-for-sale	$	199.9		$	42,478.2		$	6,381.9	$	(423.7	)	$	48,636.3
Fixed maturities, trading		274.9			475.8			369.6		—			1,120.3
Equity securities, available-for-sale		—			165.8			4.1		—			169.9
Equity securities, trading		—			0.3			316.6		—			316.9
Mortgage loans		—			9,466.9			2,072.3		(414.1	)		11,125.1
Real estate		—			9.6			1,055.6		(1.7	)		1,063.5
Policy loans		—			878.3			25.6		—			903.9
Investment in unconsolidated entities		10,195.1			3,433.6			4,841.9		(17,734.6	)		736.0
Other investments		5.6			1,603.8			769.0		(472.8	)		1,905.6
Cash and cash equivalents		370.9			699.8			719.9		86.8			1,877.4
Accrued investment income		0.8			607.4			62.5		(4.6	)		666.1
Premiums due and other receivables		—			862.6			405.4		(205.0	)		1,063.0
Deferred policy acquisition costs		—			3,258.7			271.1		—			3,529.8
Property and equipment		—			389.6			69.1		—			458.7
Goodwill		—			54.3			291.1		—			345.4
Other intangibles		—			30.5			804.1		—			834.6
Separate account assets		—			62,738.4			6,816.9		—			69,555.3
Other assets		13.6			716.0			1,146.3		(552.6	)		1,323.3
Total assets	$	11,060.8		$	127,869.6		$	26,423.0	$	(19,722.3	)	$	145,631.1
Liabilities
Contractholder funds	$	—		$	37,353.3		$	208.9	$	(261.1	)	$	37,301.1
Future policy benefits and claims		—			16,082.5			4,013.3		(49.5	)		20,046.3
Other policyholder funds		—			569.2			23.0		—			592.2
Short-term debt		—			—			107.9		—			107.9
Long-term debt		1,351.7			99.5			581.0		(448.5	)		1,583.7
Income taxes currently payable		(18.8	)		(188.0	)		28.5		184.5			6.2
Deferred income taxes		(21.6	)		134.8			309.8		(13.1	)		409.9
Separate account liabilities		—			62,738.4			6,816.9		—			69,555.3
Other liabilities		21.7			3,264.6			3,977.1		(1,119.9	)		6,143.5
Total liabilities		1,333.0			120,054.3			16,066.4		(1,707.6	)		135,746.1
Stockholders' equity
Series A preferred stock		—			—			—		—			—
Series B preferred stock		0.1			—			—		—			0.1
Common stock		4.5			2.5			—		(2.5	)		4.5
Additional paid-in capital		9,563.8			6,145.0			8,334.0		(14,479.0	)		9,563.8
Retained earnings		4,612.3			1,472.4			1,546.3		(3,018.7	)		4,612.3
Accumulated other comprehensive income		272.4			195.4			314.8		(510.2	)		272.4
Treasury stock, at cost		(4,725.3	)		—			—		—			(4,725.3	)
Total stockholders' equity attributable to PFG		9,727.8			7,815.3			10,195.1		(18,010.4	)		9,727.8
Noncontrolling interest		—			—			161.5		(4.3	)		157.2
Total stockholders' equity		9,727.8			7,815.3			10,356.6		(18,014.7	)		9,885.0
Total liabilities and stockholders' equity	$	11,060.8		$	127,869.6		$	26,423.0	$	(19,722.3	)	$	145,631.1

Condensed Consolidating Statements of Operations
For the year ended December 31, 2011

	Principal Financial Group, Inc. Parent Only			Principal Life Insurance Company Only			Principal Financial Services, Inc. and Other Subsidiaries Combined			Eliminations			Principal Financial Group, Inc. Consolidated
	(in millions)
Revenues
Premiums and other considerations	$	—		$	2,579.6		$	311.4		$	—		$	2,891.0
Fees and other revenues		0.2			1,605.1			1,257.6			(297.8	)		2,565.1
Net investment income (loss)		(12.0	)		2,578.8			763.8			45.2			3,375.8
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities		—			442.8			(388.7	)		20.9			75.0
Total other-than-temporary impairment losses on available-for-sale securities		—			(130.6	)		(17.0	)		—			(147.6	)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to (from) other comprehensive income		—			(51.5	)		1.8			—			(49.7	)
Net impairment losses on available-for-sale securities		—			(182.1	)		(15.2	)		—			(197.3	)
Net realized capital gains (losses)		—			260.7			(403.9	)		20.9			(122.3	)
Total revenues		(11.8	)		7,024.2			1,928.9			(231.7	)		8,709.6
Expenses
Benefits, claims and settlement expenses		—			3,850.5			616.9			(13.3	)		4,454.1
Dividends to policyholders		—			210.2			—			—			210.2
Operating expenses		116.0			2,077.9			1,116.6			(252.8	)		3,057.7
Total expenses		116.0			6,138.6			1,733.5			(266.1	)		7,722.0
Income (loss) before income taxes		(127.8	)		885.6			195.4			34.4			987.6
Income taxes (benefits)		(50.4	)		297.7			(11.1	)		0.2			236.4
Equity in the net income of subsidiaries		792.4			7.2			622.3			(1,421.9	)		—
Net income		715.0			595.1			828.8			(1,387.7	)		751.2
Net income attributable to noncontrolling interest		—			—			36.4			(0.2	)		36.2
Net income attributable to PFG		715.0			595.1			792.4			(1,387.5	)		715.0
Preferred stock dividends		33.0			—			—			—			33.0
Net income available to common stockholders	$	682.0		$	595.1		$	792.4		$	(1,387.5	)	$	682.0

Condensed Consolidating Statements of Operations
For the year ended December 31, 2010

	Principal Financial Group, Inc. Parent Only			Principal Life Insurance Company Only			Principal Financial Services, Inc. and Other Subsidiaries Combined			Eliminations			Principal Financial Group, Inc. Consolidated
	(in millions)
Revenues
Premiums and other considerations	$	—		$	3,260.2		$	295.3		$	—		$	3,555.5
Fees and other revenues		0.1			1,444.0			1,139.1			(285.1	)		2,298.1
Net investment income		33.2			2,800.9			629.0			33.4			3,496.5
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities		0.7			160.2			(111.9	)		(0.3	)		48.7
Total other-than-temporary impairment losses on available-for-sale securities		—			(284.7	)		(11.6	)		—			(296.3	)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to other comprehensive income		—			51.6			4.5			—			56.1
Net impairment losses on available-for-sale securities		—			(233.1	)		(7.1	)		—			(240.2	)
Net realized capital gains (losses)		0.7			(72.9	)		(119.0	)		(0.3	)		(191.5	)
Total revenues		34.0			7,432.2			1,944.4			(252.0	)		9,158.6
Expenses
Benefits, claims and settlement expenses		—			4,834.9			520.6			(17.1	)		5,338.4
Dividends to policyholders		—			219.9			—			—			219.9
Operating expenses		117.0			1,845.5			1,034.6			(238.1	)		2,759.0
Total expenses		117.0			6,900.3			1,555.2			(255.2	)		8,317.3
Income (loss) before income taxes		(83.0	)		531.9			389.2			3.2			841.3
Income taxes (benefits)		(31.6	)		119.1			36.6			—			124.1
Equity in the net income of subsidiaries		750.7			72.5			416.2			(1,239.4	)		—
Net income		699.3			485.3			768.8			(1,236.2	)		717.2
Net income attributable to noncontrolling interest		—			—			18.1			(0.2	)		17.9
Net income attributable to PFG		699.3			485.3			750.7			(1,236.0	)		699.3
Preferred stock dividends		33.0			—			—			—			33.0
Net income available to common stockholders	$	666.3		$	485.3		$	750.7		$	(1,236.0	)	$	666.3

Condensed Consolidating Statements of Operations
For the year ended December 31, 2009

	Principal Financial Group, Inc. Parent Only			Principal Life Insurance Company Only			Principal Financial Services, Inc. and Other Subsidiaries Combined			Eliminations			Principal Financial Group, Inc. Consolidated
	(in millions)
Revenues
Premiums and other considerations	$	—		$	3,479.9		$	270.7		$	—		$	3,750.6
Fees and other revenues		—			1,351.7			1,023.7			(279.4	)		2,096.0
Net investment income		3.6			2,931.0			405.7			60.5			3,400.8
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities		0.1			(436.6	)		581.2			(89.8	)		54.9
Total other-than-temporary impairment losses on available-for-sale securities		—			(703.3	)		(10.8	)		—			(714.1	)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to other comprehensive income		—			256.8			4.1			—			260.9
Net impairment losses on available-for-sale securities		—			(446.5	)		(6.7	)		—			(453.2	)
Net realized capital gains (losses)		0.1			(883.1	)		574.5			(89.8	)		(398.3	)
Total revenues		3.7			6,879.5			2,274.6			(308.7	)		8,849.1
Expenses
Benefits, claims and settlement expenses		—			5,007.6			343.5			(16.6	)		5,334.5
Dividends to policyholders		—			242.2			—			—			242.2
Operating expenses		90.8			1,665.3			997.2			(226.7	)		2,526.6
Total expenses		90.8			6,915.1			1,340.7			(243.3	)		8,103.3
Income (loss) before income taxes		(87.1	)		(35.6	)		933.9			(65.4	)		745.8
Income taxes (benefits)		(34.7	)		(72.7	)		206.9			0.6			100.1
Equity in the net income (loss) of subsidiaries		675.1			466.7			(28.7	)		(1,113.1	)		—
Net income		622.7			503.8			698.3			(1,179.1	)		645.7
Net income attributable to noncontrolling interest		—			—			23.2			(0.2	)		23.0
Net income attributable to PFG		622.7			503.8			675.1			(1,178.9	)		622.7
Preferred stock dividends		33.0			—			—			—			33.0
Net income available to common stockholders	$	589.7		$	503.8		$	675.1		$	(1,178.9	)	$	589.7

Condensed Consolidating Statements of Cash Flows
For the year ended December 31, 2011

	Principal Financial Group, Inc. Parent Only			Principal Life Insurance Company Only			Principal Financial Services, Inc. and Other Subsidiaries Combined			Eliminations			Principal Financial Group, Inc. Consolidated
	(in millions)
Operating activities
Net cash provided by (used in) operating activities	$	(73.3	)	$	2,495.5		$	374.7		$	(83.6	)	$	2,713.3
Investing activities
Available-for-sale securities:
Purchases		(4.4	)		(6,047.2	)		(696.8	)		6.0			(6,742.4	)
Sales		200.0			689.5			116.2			(25.0	)		980.7
Maturities		4.4			5,037.0			719.4			—			5,760.8
Mortgage loans acquired or originated		—			(1,372.7	)		(169.0	)		56.8			(1,484.9	)
Mortgage loans sold or repaid		—			1,548.6			339.3			(94.8	)		1,793.1
Real estate acquired		—			(0.3	)		(129.6	)		—			(129.9	)
Net purchases of property and equipment		—			(46.7	)		(10.2	)		—			(56.9	)
Purchase of interests in subsidiaries, net of cash acquired		—			—			(270.5	)		—			(270.5	)
Dividends and returns of capital received from unconsolidated entities		506.5			327.9			756.5			(1,590.9	)		—
Net change in other investments		(0.2	)		(48.1	)		14.5			(18.3	)		(52.1	)
Net cash provided by (used in) investing activities		706.3			88.0			669.8			(1,666.2	)		(202.1	)
Financing activities
Issuance of common stock		25.9			—			—			—			25.9
Acquisition of treasury stock		(556.4	)		—			—			—			(556.4	)
Proceeds from financing element derivatives		—			75.9			—			—			75.9
Payments for financing element derivatives		—			(46.5	)		—			—			(46.5	)
Excess tax benefits from share-based payment arrangements		—			0.8			1.2			—			2.0
Dividends to common stockholders		(213.7	)		—			—			—			(213.7	)
Dividends to preferred stockholders		(33.0	)		—			—			—			(33.0	)
Principal repayments of long-term debt		—			—			(69.4	)		57.2			(12.2	)
Net proceeds from short-term borrowings		—			—			3.2			—			3.2
Dividends and capital paid to parent		—			(756.5	)		(834.4	)		1,590.9			—
Investment contract deposits		—			5,868.7			433.4			—			6,302.1
Investment contract withdrawals		—			(7,076.7	)		(2.3	)		—			(7,079.0	)
Net decrease in banking operation deposits		—			—			(18.5	)		—			(18.5	)
Other		—			(4.5	)		—			—			(4.5	)
Net cash used in financing activities		(777.2	)		(1,938.8	)		(486.8	)		1,648.1			(1,554.7	)
Net increase (decrease) in cash and cash equivalents		(144.2	)		644.7			557.7			(101.7	)		956.5
Cash and cash equivalents at beginning of year		370.9			699.8			719.9			86.8			1,877.4
Cash and cash equivalents at end of year	$	226.7		$	1,344.5		$	1,277.6		$	(14.9	)	$	2,833.9

Condensed Consolidating Statements of Cash Flows
For the year ended December 31, 2010

	Principal Financial Group, Inc. Parent Only			Principal Life Insurance Company Only			Principal Financial Services, Inc. and Other Subsidiaries Combined			Eliminations			Principal Financial Group, Inc. Consolidated
	(in millions)
Operating activities
Net cash provided by operating activities	$	29.3		$	2,374.5		$	414.8		$	(26.9	)	$	2,791.7
Investing activities
Available-for-sale securities:
Purchases		(286.8	)		(5,631.7	)		(1,273.5	)		4.1			(7,187.9	)
Sales		95.5			1,240.8			380.3			(32.0	)		1,684.6
Maturities		117.9			4,390.7			652.7			—			5,161.3
Mortgage loans acquired or originated		—			(1,209.4	)		(295.8	)		233.2			(1,272.0	)
Mortgage loans sold or repaid		—			1,624.1			422.6			(248.7	)		1,798.0
Real estate acquired		—			(0.2	)		(53.6	)		—			(53.8	)
Net purchases of property and equipment		—			(4.3	)		(17.2	)		—			(21.5	)
Dividends and returns of capital received from unconsolidated entities		301.8			229.1			301.8			(832.7	)		—
Net change in other investments		(0.2	)		(46.8	)		(163.3	)		129.1			(81.2	)
Net cash provided by (used in) investing activities		228.2			592.3			(46.0	)		(747.0	)		27.5
Financing activities
Issuance of common stock		20.6			—			—			—			20.6
Acquisition of treasury stock		(2.6	)		—			—			—			(2.6	)
Proceeds from financing element derivatives		—			79.3			—			—			79.3
Payments for financing element derivatives		—			(46.5	)		—			—			(46.5	)
Excess tax benefits from share-based payment arrangements		—			0.4			0.6			—			1.0
Dividends to common stockholders		(176.2	)		—			—			—			(176.2	)
Dividends to preferred stockholders		(33.0	)		—			—			—			(33.0	)
Issuance of long-term debt		—			—			27.6			(25.3	)		2.3
Principal repayments of long-term debt		—			—			(58.7	)		47.6			(11.1	)
Net proceeds from (repayments of) short-term borrowings		—			—			(30.4	)		32.1			1.7
Dividends and capital paid to parent		—			(301.8	)		(530.9	)		832.7			—
Investment contract deposits		—			4,100.0			183.8			—			4,283.8
Investment contract withdrawals		—			(7,343.3	)		(0.1	)		—			(7,343.4	)
Net increase in banking operation deposits		—			—			46.2			—			46.2
Other		—			(4.3	)		—			—			(4.3	)
Net cash used in financing activities		(191.2	)		(3,516.2	)		(361.9	)		887.1			(3,182.2	)
Net increase (decrease) in cash and cash equivalents		66.3			(549.4	)		6.9			113.2			(363.0	)
Cash and cash equivalents at beginning of year		304.6			1,249.2			713.0			(26.4	)		2,240.4
Cash and cash equivalents at end of year	$	370.9		$	699.8		$	719.9		$	86.8		$	1,877.4

Condensed Consolidating Statements of Cash Flows
For the year ended December 31, 2009

	Principal Financial Group, Inc. Parent Only			Principal Life Insurance Company Only			Principal Financial Services, Inc. and Other Subsidiaries Combined			Eliminations			Principal Financial Group, Inc. Consolidated
	(in millions)
Operating activities
Net cash provided by (used in) operating activities	$	(442.6	)	$	2,616.9		$	(129.2	)	$	197.9		$	2,243.0
Investing activities
Available-for-sale securities:
Purchases		(187.6	)		(6,537.4	)		(1,288.3	)		80.0			(7,933.3	)
Sales		4.0			3,002.0			602.9			(169.1	)		3,439.8
Maturities		57.1			3,944.6			566.4			—			4,568.1
Mortgage loans acquired or originated		—			(507.3	)		(151.3	)		72.1			(586.5	)
Mortgage loans sold or repaid		—			1,449.3			366.2			(111.1	)		1,704.4
Real estate acquired		—			—			(62.2	)		—			(62.2	)
Net purchases of property and equipment		(0.1	)		(11.1	)		(15.0	)		—			(26.2	)
Purchases of interest in subsidiaries, net of cash acquired		—			—			(45.7	)		—			(45.7	)
Contributions to unconsolidated entities		(795.9	)		(29.6	)		(150.9	)		976.4			—
Net change in other investments		0.2			55.8			24.7			(112.3	)		(31.6	)
Net cash provided by (used in) investing activities		(922.3	)		1,366.3			(153.2	)		736.0			1,026.8
Financing activities
Issuance of common stock		1,123.0			—			—			—			1,123.0
Acquisition of treasury stock		(4.1	)		—			—			—			(4.1	)
Proceeds from financing element derivatives		—			122.0			—			—			122.0
Payments for financing element derivatives		—			(67.4	)		—			—			(67.4	)
Excess tax benefits from share-based payment arrangements		—			0.1			0.1			—			0.2
Dividends to common stockholders		(159.5	)		—			—			—			(159.5	)
Dividends to preferred stockholders		(33.0	)		—			—			—			(33.0	)
Issuance of long-term debt		745.1			—			—			—			745.1
Principal repayments of long-term debt		—			—			(665.1	)		196.9			(468.2	)
Net repayments of short-term borrowings		—			—			(405.2	)		0.1			(405.1	)
Capital received from parent		—			150.9			825.5			(976.4	)		—
Investment contract deposits		—			4,220.2			3.9			—			4,224.1
Investment contract withdrawals		—			(8,752.7	)		—			—			(8,752.7	)
Net increase in banking operation deposits		—			—			43.9			—			43.9
Other		—			(5.7	)		—			—			(5.7	)
Net cash provided by (used in) financing activities		1,671.5			(4,332.6	)		(196.9	)		(779.4	)		(3,637.4	)
Net increase (decrease) in cash and cash equivalents		306.6			(349.4	)		(479.3	)		154.5			(367.6	)
Cash and cash equivalents at beginning of year		(2.0	)		1,598.6			1,192.3			(180.9	)		2,608.0
Cash and cash equivalents at end of year	$	304.6		$	1,249.2		$	713.0		$	(26.4	)	$	2,240.4

Condensed Consolidating Financial Information, Shelf Registration Guarantor (Table)

Condensed Consolidating Statements of Financial Position
December 31, 2011

	Principal Financial Group, Inc. Parent Only			Principal Financial Services, Inc. Only			Principal Life Insurance Company and Other Subsidiaries Combined			Eliminations			Principal Financial Group, Inc. Consolidated
	(in millions)
Assets
Fixed maturities, available-for-sale	$	—		$	—		$	49,006.7		$	—		$	49,006.7
Fixed maturities, trading		268.7			—			703.0			—			971.7
Equity securities, available-for-sale		—			—			77.1			—			77.1
Equity securities, trading		—			—			404.8			—			404.8
Mortgage loans		—			—			10,727.2			—			10,727.2
Real estate		—			—			1,092.9			—			1,092.9
Policy loans		—			—			885.1			—			885.1
Investment in unconsolidated entities		10,447.1			10,382.0			829.5			(20,829.1	)		829.5
Other investments		7.0			3.0			2,148.5			—			2,158.5
Cash and cash equivalents		226.7			702.4			2,787.9			(883.1	)		2,833.9
Accrued investment income		1.8			—			613.4			—			615.2
Premiums due and other receivables		—			—			1,243.9			1.3			1,245.2
Deferred policy acquisition costs		—			—			3,313.5			—			3,313.5
Property and equipment		—			—			457.2			—			457.2
Goodwill		—			—			482.3			—			482.3
Other intangibles		—			—			890.6			—			890.6
Separate account assets		—			—			71,364.4			—			71,364.4
Other assets		14.8			10.4			926.0			(9.0	)		942.2
Total assets	$	10,966.1		$	11,097.8		$	147,954.0		$	(21,719.9	)	$	148,298.0
Liabilities
Contractholder funds	$	—		$	—		$	37,676.4		$	—		$	37,676.4
Future policy benefits and claims		—			—			20,207.9			—			20,207.9
Other policyholder funds		—			—			543.7			—			543.7
Short-term debt		—			50.0			318.9			(263.7	)		105.2
Long-term debt		1,351.7			—			213.1			—			1,564.8
Income taxes currently payable		(18.6	)		(0.9	)		12.0			10.6			3.1
Deferred income taxes		(22.5	)		(22.8	)		595.4			(16.7	)		533.4
Separate account liabilities		—			—			71,364.4			—			71,364.4
Other liabilities		18.5			624.4			6,264.2			(621.0	)		6,286.1
Total liabilities		1,329.1			650.7			137,196.0			(890.8	)		138,285.0
Stockholders' equity
Series A preferred stock		—			—			—			—			—
Series B preferred stock		0.1			—			—			—			0.1
Common stock		4.5			—			17.8			(17.8	)		4.5
Additional paid-in capital		9,634.7			7,870.2			7,543.4			(15,413.6	)		9,634.7
Retained earnings		5,077.5			2,335.6			2,582.7			(4,918.3	)		5,077.5
Accumulated other comprehensive income		201.9			241.3			240.1			(481.4	)		201.9
Treasury stock, at cost		(5,281.7	)		—			(2.0	)		2.0			(5,281.7	)
Total stockholders' equity attributable to PFG		9,637.0			10,447.1			10,382.0			(20,829.1	)		9,637.0
Noncontrolling interest		—			—			376.0			—			376.0
Total stockholders' equity		9,637.0			10,447.1			10,758.0			(20,829.1	)		10,013.0
Total liabilities and stockholders' equity	$	10,966.1		$	11,097.8		$	147,954.0		$	(21,719.9	)	$	148,298.0

Condensed Consolidating Statements of Financial Position
December 31, 2010

	Principal Financial Group, Inc. Parent Only			Principal Financial Services, Inc. Only			Principal Life Insurance Company and Other Subsidiaries Combined			Eliminations			Principal Financial Group, Inc. Consolidated
	(in millions)
Assets
Fixed maturities, available-for-sale	$	199.9		$	—		$	48,436.4		$	—		$	48,636.3
Fixed maturities, trading		274.9			—			845.4			—			1,120.3
Equity securities, available-for-sale		—			—			169.9			—			169.9
Equity securities, trading		—			—			316.9			—			316.9
Mortgage loans		—			—			11,125.1			—			11,125.1
Real estate		—			—			1,063.5			—			1,063.5
Policy loans		—			—			903.9			—			903.9
Investment in unconsolidated entities		10,195.1			10,209.0			735.8			(20,403.9	)		736.0
Other investments		5.6			45.5			1,854.5			—			1,905.6
Cash and cash equivalents		370.9			519.7			1,821.7			(834.9	)		1,877.4
Accrued investment income		0.8			—			665.3			—			666.1
Premiums due and other receivables		—			—			1,066.1			(3.1	)		1,063.0
Deferred policy acquisition costs		—			—			3,529.8			—			3,529.8
Property and equipment		—			—			458.7			—			458.7
Goodwill		—			—			345.4			—			345.4
Other intangibles		—			—			834.6			—			834.6
Separate account assets		—			—			69,555.3			—			69,555.3
Other assets		13.6			9.8			1,302.4			(2.5	)		1,323.3
Total assets	$	11,060.8		$	10,784.0		$	145,030.7		$	(21,244.4	)	$	145,631.1
Liabilities
Contractholder funds	$	—		$	—		$	37,301.1		$	—		$	37,301.1
Future policy benefits and claims		—			—			20,046.3			—			20,046.3
Other policyholder funds		—			—			592.2			—			592.2
Short-term debt		—			50.0			352.3			(294.4	)		107.9
Long-term debt		1,351.7			—			232.0			—			1,583.7
Income taxes currently payable		(18.8	)		(2.3	)		11.6			15.7			6.2
Deferred income taxes		(21.6	)		(8.7	)		455.7			(15.5	)		409.9
Separate account liabilities		—			—			69,555.3			—			69,555.3
Other liabilities		21.7			549.9			6,118.0			(546.1	)		6,143.5
Total liabilities		1,333.0			588.9			134,664.5			(840.3	)		135,746.1
Stockholders' equity
Series A preferred stock		—			—			—			—			—
Series B preferred stock		0.1			—			—			—			0.1
Common stock		4.5			—			17.8			(17.8	)		4.5
Additional paid-in capital		9,563.8			8,334.0			7,730.0			(16,064.0	)		9,563.8
Retained earnings		4,612.3			1,546.3			2,142.4			(3,688.7	)		4,612.3
Accumulated other comprehensive income		272.4			314.8			320.8			(635.6	)		272.4
Treasury stock, at cost		(4,725.3	)		—			(2.0	)		2.0			(4,725.3	)
Total stockholders' equity attributable to PFG		9,727.8			10,195.1			10,209.0			(20,404.1	)		9,727.8
Noncontrolling interest		—			—			157.2			—			157.2
Total stockholders' equity		9,727.8			10,195.1			10,366.2			(20,404.1	)		9,885.0
Total liabilities and stockholders' equity	$	11,060.8		$	10,784.0		$	145,030.7		$	(21,244.4	)	$	145,631.1

Condensed Consolidating Statements of Operations
For the year ended December 31, 2011

	Principal Financial Group, Inc. Parent Only			Principal Financial Services, Inc. Only			Principal Life Insurance Company and Other Subsidiaries Combined			Eliminations			Principal Financial Group, Inc. Consolidated
	(in millions)
Revenues
Premiums and other considerations	$	—		$	—		$	2,891.0		$	—		$	2,891.0
Fees and other revenues		0.2			—			2,567.9			(3.0	)		2,565.1
Net investment income (loss)		(12.0	)		(3.3	)		3,388.1			3.0			3,375.8
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities		—			(0.1	)		75.1			—			75.0
Total other-than-temporary impairment losses on available-for-sale securities		—			—			(147.6	)		—			(147.6	)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified from other comprehensive income		—			—			(49.7	)		—			(49.7	)
Net impairment losses on available-for-sale securities		—			—			(197.3	)		—			(197.3	)
Net realized capital losses		—			(0.1	)		(122.2	)		—			(122.3	)
Total revenues		(11.8	)		(3.4	)		8,724.8			—			8,709.6
Expenses
Benefits, claims and settlement expenses		—			—			4,454.1			—			4,454.1
Dividends to policyholders		—			—			210.2			—			210.2
Operating expenses		116.0			1.7			2,940.0			—			3,057.7
Total expenses		116.0			1.7			7,604.3			—			7,722.0
Income (loss) before income taxes		(127.8	)		(5.1	)		1,120.5			—			987.6
Income taxes (benefits)		(50.4	)		(10.0	)		296.8			—			236.4
Equity in the net income of subsidiaries		792.4			787.5			—			(1,579.9	)		—
Net income		715.0			792.4			823.7			(1,579.9	)		751.2
Net income attributable to noncontrolling interest		—			—			36.2			—			36.2
Net income attributable to PFG		715.0			792.4			787.5			(1,579.9	)		715.0
Preferred stock dividends		33.0			—			—			—			33.0
Net income available to common stockholders	$	682.0		$	792.4		$	787.5		$	(1,579.9	)	$	682.0

Condensed Consolidating Statements of Operations
For the year ended December 31, 2010

	Principal Financial Group, Inc. Parent Only			Principal Financial Services, Inc. Only			Principal Life Insurance Company and Other Subsidiaries Combined			Eliminations			Principal Financial Group, Inc. Consolidated
	(in millions)
Revenues
Premiums and other considerations	$	—		$	—		$	3,555.5		$	—		$	3,555.5
Fees and other revenues		0.1			—			2,302.8			(4.8	)		2,298.1
Net investment income (loss)		33.2			(3.1	)		3,461.7			4.7			3,496.5
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities		0.7			(0.2	)		48.2			—			48.7
Total other-than-temporary impairment losses on available-for-sale securities		—			—			(296.3	)		—			(296.3	)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to other comprehensive income		—			—			56.1			—			56.1
Net impairment losses on available-for-sale securities		—			—			(240.2	)		—			(240.2	)
Net realized capital gains (losses)		0.7			(0.2	)		(192.0	)		—			(191.5	)
Total revenues		34.0			(3.3	)		9,128.0			(0.1	)		9,158.6
Expenses
Benefits, claims and settlement expenses		—			—			5,338.4			—			5,338.4
Dividends to policyholders		—			—			219.9			—			219.9
Operating expenses		117.0			1.2			2,640.9			(0.1	)		2,759.0
Total expenses		117.0			1.2			8,199.2			(0.1	)		8,317.3
Income (loss) before income taxes		(83.0	)		(4.5	)		928.8			—			841.3
Income taxes (benefits)		(31.6	)		(1.7	)		157.4			—			124.1
Equity in the net income of subsidiaries		750.7			753.5			—			(1,504.2	)		—
Net income		699.3			750.7			771.4			(1,504.2	)		717.2
Net income attributable to noncontrolling interest		—			—			17.9			—			17.9
Net income attributable to PFG		699.3			750.7			753.5			(1,504.2	)		699.3
Preferred stock dividends		33.0			—			—			—			33.0
Net income available to common stockholders	$	666.3		$	750.7		$	753.5		$	(1,504.2	)	$	666.3

Condensed Consolidating Statements of Operations
For the year ended December 31, 2009

	Principal Financial Group, Inc. Parent Only			Principal Financial Services, Inc. Only			Principal Life Insurance Company and Other Subsidiaries Combined			Eliminations			Principal Financial Group, Inc. Consolidated
	(in millions)
Revenues
Premiums and other considerations	$	—		$	—		$	3,750.6		$	—		$	3,750.6
Fees and other revenues		—			0.1			2,109.0			(13.1	)		2,096.0
Net investment income (loss)		3.6			(0.5	)		3,397.1			0.6			3,400.8
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities		0.1			(0.4	)		55.1			0.1			54.9
Total other-than-temporary impairment losses on available-for-sale securities		—			—			(714.1	)		—			(714.1	)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to other comprehensive income		—			—			260.9			—			260.9
Net impairment losses on available-for-sale securities		—			—			(453.2	)		—			(453.2	)
Net realized capital gains (losses)		0.1			(0.4	)		(398.1	)		0.1			(398.3	)
Total revenues		3.7			(0.8	)		8,858.6			(12.4	)		8,849.1
Expenses
Benefits, claims and settlement expenses		—			—			5,334.5			—			5,334.5
Dividends to policyholders		—			—			242.2			—			242.2
Operating expenses		90.8			27.9			2,420.3			(12.4	)		2,526.6
Total expenses		90.8			27.9			7,997.0			(12.4	)		8,103.3
Income (loss) before income taxes		(87.1	)		(28.7	)		861.6			—			745.8
Income taxes (benefits)		(34.7	)		(21.0	)		155.8			—			100.1
Equity in the net income of subsidiaries		675.1			682.8			—			(1,357.9	)		—
Net income		622.7			675.1			705.8			(1,357.9	)		645.7
Net income attributable to noncontrolling interest		—			—			23.0			—			23.0
Net income attributable to PFG		622.7			675.1			682.8			(1,357.9	)		622.7
Preferred stock dividends		33.0			—			—			—			33.0
Net income available to common stockholders	$	589.7		$	675.1		$	682.8		$	(1,357.9	)	$	589.7

Condensed Consolidating Statements of Cash Flows
For the year ended December 31, 2011

	Principal Financial Group, Inc. Parent Only			Principal Financial Services, Inc. Only			Principal Life Insurance Company and Other Subsidiaries Combined			Eliminations			Principal Financial Group, Inc. Consolidated
	(in millions)
Operating activities
Net cash provided by (used in) operating activities	$	(73.3	)	$	70.5		$	2,795.0		$	(78.9	)	$	2,713.3
Investing activities
Available-for-sale securities:
Purchases		(4.4	)		—			(6,738.0	)		—			(6,742.4	)
Sales		200.0			—			780.7			—			980.7
Maturities		4.4			—			5,756.4			—			5,760.8
Mortgage loans acquired or originated		—			—			(1,484.9	)		—			(1,484.9	)
Mortgage loans sold or repaid		—			—			1,793.1			—			1,793.1
Real estate acquired		—			—			(129.9	)		—			(129.9	)
Net purchases of property and equipment		—			—			(56.9	)		—			(56.9	)
Purchase of interests in subsidiaries, net of cash acquired		—			—			(270.5	)		—			(270.5	)
Dividends and returns of capital received from unconsolidated entities		506.5			624.1			—			(1,130.6	)		—
Net change in other investments		(0.2	)		(5.4	)		(46.5	)		—			(52.1	)
Net cash provided by (used in) investing activities		706.3			618.7			(396.5	)		(1,130.6	)		(202.1	)
Financing activities
Issuance of common stock		25.9			—			—			—			25.9
Acquisition of treasury stock		(556.4	)		—			—			—			(556.4	)
Proceeds from financing element derivatives		—			—			75.9			—			75.9
Payments for financing element derivatives		—			—			(46.5	)		—			(46.5	)
Excess tax benefits from share-based payment arrangements		—			—			2.0			—			2.0
Dividends to common stockholders		(213.7	)		—			—			—			(213.7	)
Dividends to preferred stockholders		(33.0	)		—			—			—			(33.0	)
Principal repayments of long-term debt		—			—			(12.2	)		—			(12.2	)
Net proceeds from (repayments of) short-term borrowings		—			—			(27.5	)		30.7			3.2
Dividends and capital paid to parent		—			(506.5	)		(624.1	)		1,130.6			—
Investment contract deposits		—			—			6,302.1			—			6,302.1
Investment contract withdrawals		—			—			(7,079.0	)		—			(7,079.0	)
Net decrease in banking operation deposits		—			—			(18.5	)		—			(18.5	)
Other		—			—			(4.5	)		—			(4.5	)
Net cash used in financing activities		(777.2	)		(506.5	)		(1,432.3	)		1,161.3			(1,554.7	)
Net increase (decrease) in cash and cash equivalents		(144.2	)		182.7			966.2			(48.2	)		956.5
Cash and cash equivalents at beginning of year		370.9			519.7			1,821.7			(834.9	)		1,877.4
Cash and cash equivalents at end of year	$	226.7		$	702.4		$	2,787.9		$	(883.1	)	$	2,833.9

Condensed Consolidating Statements of Cash Flows
For the year ended December 31, 2010

	Principal Financial Group, Inc. Parent Only			Principal Financial Services, Inc. Only			Principal Life Insurance Company and Other Subsidiaries Combined			Eliminations			Principal Financial Group, Inc. Consolidated
	(in millions)
Operating activities
Net cash provided by (used in) operating activities	$	29.3		$	(19.7	)	$	2,777.2		$	4.9		$	2,791.7
Investing activities
Available-for-sale securities:
Purchases		(286.8	)		—			(6,901.1	)		—			(7,187.9	)
Sales		95.5			—			1,589.1			—			1,684.6
Maturities		117.9			—			5,043.4			—			5,161.3
Mortgage loans acquired or originated		—			—			(1,272.0	)		—			(1,272.0	)
Mortgage loans sold or repaid		—			—			1,798.0			—			1,798.0
Real estate acquired		—			—			(53.8	)		—			(53.8	)
Net purchases of property and equipment		—			—			(21.5	)		—			(21.5	)
Dividends and returns of capital received from unconsolidated entities		301.8			326.4			—			(628.2	)		—
Net change in other investments		(0.2	)		5.4			(84.3	)		(2.1	)		(81.2	)
Net cash provided by investing activities		228.2			331.8			97.8			(630.3	)		27.5
Financing activities
Issuance of common stock		20.6			—			—			—			20.6
Acquisition of treasury stock		(2.6	)		—			—			—			(2.6	)
Proceeds from financing element derivatives		—			—			79.3			—			79.3
Payments for financing element derivatives		—			—			(46.5	)		—			(46.5	)
Excess tax benefits from share-based payment arrangements		—			—			1.0			—			1.0
Dividends to common stockholders		(176.2	)		—			—			—			(176.2	)
Dividends to preferred stockholders		(33.0	)		—			—			—			(33.0	)
Issuance of long-term debt		—			—			2.3			—			2.3
Principal repayments of long-term debt		—			—			(11.1	)		—			(11.1	)
Net proceeds from (repayments of) short-term borrowings		—			(25.0	)		9.0			17.7			1.7
Dividends and capital paid to parent		—			(301.8	)		(326.4	)		628.2			—
Investment contract deposits		—			—			4,283.8			—			4,283.8
Investment contract withdrawals		—			—			(7,343.4	)		—			(7,343.4	)
Net increase in banking operation deposits		—			—			46.2			—			46.2
Other		—			—			(4.3	)		—			(4.3	)
Net cash used in financing activities		(191.2	)		(326.8	)		(3,310.1	)		645.9			(3,182.2	)
Net increase (decrease) in cash and cash equivalents		66.3			(14.7	)		(435.1	)		20.5			(363.0	)
Cash and cash equivalents at beginning of year		304.6			534.4			2,256.8			(855.4	)		2,240.4
Cash and cash equivalents at end of year	$	370.9		$	519.7		$	1,821.7		$	(834.9	)	$	1,877.4

Condensed Consolidating Statements of Cash Flows
For the year ended December 31, 2009

	Principal Financial Group, Inc. Parent Only			Principal Financial Services, Inc. Only			Principal Life Insurance Company and Other Subsidiaries Combined			Eliminations			Principal Financial Group, Inc. Consolidated
	(in millions)
Operating activities
Net cash provided by (used in) operating activities	$	(442.6	)	$	179.1		$	2,640.7		$	(134.2	)	$	2,243.0
Investing activities
Available-for-sale securities:
Purchases		(187.6	)		(50.0	)		(7,695.7	)		—			(7,933.3	)
Sales		4.0			—			3,435.8			—			3,439.8
Maturities		57.1			—			4,511.0			—			4,568.1
Mortgage loans acquired or originated		—			—			(586.5	)		—			(586.5	)
Mortgage loans sold or repaid		—			—			1,704.4			—			1,704.4
Real estate acquired		—			—			(62.2	)		—			(62.2	)
Net purchases of property and equipment		(0.1	)		—			(26.1	)		—			(26.2	)
Purchases of interest in subsidiaries, net of cash acquired		—			—			(45.7	)		—			(45.7	)
Contributions to unconsolidated entities		(795.9	)		(111.8	)		—			907.7			—
Net change in other investments		0.2			37.8			(33.8	)		(35.8	)		(31.6	)
Net cash provided by (used in) investing activities		(922.3	)		(124.0	)		1,201.2			871.9			1,026.8
Financing activities
Issuance of common stock		1,123.0			—			—			—			1,123.0
Acquisition of treasury stock		(4.1	)		—			—			—			(4.1	)
Proceeds from financing element derivatives		—			—			122.0			—			122.0
Payments for financing element derivatives		—			—			(67.4	)		—			(67.4	)
Excess tax benefits from share-based payment arrangements		—			—			0.2			—			0.2
Dividends to common stockholders		(159.5	)		—			—			—			(159.5	)
Dividends to preferred stockholders		(33.0	)		—			—			—			(33.0	)
Issuance of long-term debt		745.1			—			—			—			745.1
Principal repayments of long-term debt		—			(454.6	)		(13.6	)		—			(468.2	)
Net proceeds from (repayments of) short-term borrowings		—			(408.0	)		23.8			(20.9	)		(405.1	)
Capital received from parent		—			795.9			111.8			(907.7	)		—
Investment contract deposits		—			—			4,224.1			—			4,224.1
Investment contract withdrawals		—			—			(8,752.7	)		—			(8,752.7	)
Net increase in banking operation deposits		—			—			43.9			—			43.9
Other		—			—			(5.7	)		—			(5.7	)
Net cash provided by (used in) financing activities		1,671.5			(66.7	)		(4,313.6	)		(928.6	)		(3,637.4	)
Net increase (decrease) in cash and cash equivalents		306.6			(11.6	)		(471.7	)		(190.9	)		(367.6	)
Cash and cash equivalents at beginning of year		(2.0	)		546.0			2,728.5			(664.5	)		2,608.0
Cash and cash equivalents at end of year	$	304.6		$	534.4		$	2,256.8		$	(855.4	)	$	2,240.4