XML 151 R51.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2013
Segment Information  
Reconciliation of Assets from Segment to Consolidated (Table)

 

 
   December 31, 2013   December 31, 2012  
 
   (in millions)
  

Assets:

              

Retirement and Investor Services

   $ 128,736.7   $ 117,399.5  

Principal Global Investors

     1,312.1     1,282.2  

Principal International

     54,243.6     19,170.9  

U.S. Insurance Solutions

     20,033.6     19,017.2  

Corporate

     3,865.4     4,960.4  
           
​ ​ ​ ​ ​ ​ ​ ​

Total consolidated assets

   $ 208,191.4   $ 161,830.2  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           


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


 

 
   For the year ended
December 31,		  
 
   2013   2012   2011  
 
   (in millions)
  

Operating revenues by segment:

                    

Retirement and Investor Services

   $ 4,847.6   $ 4,834.9   $ 4,075.0  

Principal Global Investors

     719.2     591.2     546.3  

Principal International

     1,150.0     942.7     909.0  

U.S. Insurance Solutions

     3,106.4     2,994.7     2,939.9  

Corporate

     (215.8 )   (188.1 )   (189.2 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total segment operating revenues

     9,607.4     9,175.4     8,281.0  

Net realized capital gains (losses), net of related revenue adjustments

     (320.0 )   14.7     (221.5 )

Exited group medical insurance business

     2.1     25.0     606.3  

Assumption change within our Individual Life business

     —     —     4.9  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total revenues per consolidated statements of operations

   $ 9,289.5   $ 9,215.1   $ 8,670.7  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

Operating earnings (loss) by segment, net of related income taxes:

                    

Retirement and Investor Services

   $ 694.4   $ 575.1   $ 562.9  

Principal Global Investors

     102.6     81.2     74.0  

Principal International

     215.2     154.1     135.0  

U.S. Insurance Solutions

     196.6     138.2     204.3  

Corporate

     (148.9 )   (139.8 )   (146.9 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total segment operating earnings, net of related income taxes

     1,059.9     808.8     829.3  

Net realized capital gains (losses), as adjusted (1)

     (179.1 )   39.0     (141.7 )

Other after-tax adjustments (2)

     (1.1 )   (74.2 )   (82.3 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net income available to common stockholders per consolidated statements of operations

   $ 879.7   $ 773.6   $ 605.3  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               
(1)
Net realized capital gains (losses), as adjusted, is derived as follows:

 
   For the year ended
December 31,		  
 
   2013   2012   2011  
 
   (in millions)
  

Net realized capital gains (losses):

                    

Net realized capital gains (losses)

   $ (225.2 ) $ 114.1   $ (122.3 )

Certain derivative and hedging-related adjustments

     (93.9 )   (98.9 )   (98.8 )

Certain market value adjustments to fee revenues

     —     (0.3 )   (0.1 )

Recognition of front-end fee revenue

     (0.9 )   (0.2 )   (0.3 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net realized capital gains (losses), net of related revenue adjustments

     (320.0 )   14.7     (221.5 )

Amortization of deferred acquisition costs and other actuarial balances

     47.1     36.6     (21.5 )

Capital gains distributed

     (25.8 )   (12.2 )   (3.1 )

Certain market value adjustments of embedded derivatives

     18.4     (0.6 )   65.6  

Net realized capital (gains) losses associated with exited group medical insurance business

     —     0.2     (0.2 )

Noncontrolling interest capital gains

     (0.2 )   (8.3 )   (31.6 )

Income tax effect

     101.4     8.6     70.6  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net realized capital gains (losses), as adjusted

   $ (179.1 ) $ 39.0   $ (141.7 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               
(2)
For the year ended December 31, 2013, other after-tax adjustments included the negative effect of losses associated with our exited group medical insurance business that does not qualify for discontinued operations accounting treatment under U.S. GAAP.

For the year ended December 31, 2012, other after-tax adjustments included the negative effect of (a) a contribution made to The Principal Financial Group Foundation, Inc. ($39.8 million), (b) one-time costs incurred to extinguish long-term debt that was scheduled to mature in 2014 ($24.8 million) and (c) losses associated with our exited group medical insurance business that does not qualify for discontinued operations accounting treatment under U.S. GAAP ($9.6 million).

For the year ended December 31, 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) an assumption change in our Individual Life business ($34.5 million), (c) a contribution made to The Principal Financial Group Foundation, Inc. ($19.5 million) and (d) 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 qualify for discontinued operations accounting treatment under U.S. GAAP ($50.9 million).

        
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated (Table)

 

 
   For the year ended
December 31,		  
 
   2013   2012   2011  
 
   (in millions)
  

Income tax expense by segment:

                    

Retirement and Investor Services

   $ 195.6   $ 150.0   $ 163.9  

Principal Global Investors

     55.5     43.5     41.0  

Principal International

     28.0     0.6     (3.1 )

U.S. Insurance Solutions

     94.0     61.3     95.3  

Corporate

     (83.2 )   (69.6 )   (72.9 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total segment income taxes from operating earnings

     289.9     185.8     224.2  

Tax benefit related to net realized capital losses, as adjusted

     (101.4 )   (8.6 )   (70.6 )

Tax expense (benefit) related to other after-tax adjustments

     (0.6 )   (42.6 )   44.7  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total income taxes expense per consolidated statements of operations

   $ 187.9   $ 134.6   $ 198.3  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

        
Reconciliation of Depreciation and Amortization Expense from Segments to Consolidated (Table)

 

 
   For the year ended
December 31,		  
 
   2013   2012   2011  
 
   (in millions)
  

Depreciation and amortization expense by segment:

                    

Retirement and Investor Services

   $ 26.7   $ 26.3   $ 24.7  

Principal Global Investors

     11.8     13.3     11.3  

Principal International

     47.8     18.9     14.8  

U.S. Insurance Solutions

     17.2     17.0     16.6  

Corporate

     4.6     5.4     5.0  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total segment depreciation and amortization expense included in operating earnings

     108.1     80.9     72.4  

Depreciation and amortization expense related to other after-tax adjustments

     1.4     6.1     6.1  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total depreciation and amortization expense included in our consolidated statements of operations

   $ 109.5   $ 87.0   $ 78.5  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

       
Operating Revenue for Products and Services by Segment (Table)

 

 
   For the year ended
December 31,		  
 
   2013   2012   2011  
 
   (in millions)
  

Retirement and Investor Services:

                    

Full service accumulation

   $ 1,470.7   $ 1,357.0   $ 1,338.0  

Principal Funds

     765.8     619.6     560.4  

Individual annuities

     1,366.5     1,162.4     1,119.2  

Bank and trust services

     95.2     101.6     100.5  

Eliminations

     (146.8 )   (120.3 )   (111.8 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total Accumulation

     3,551.4     3,120.3     3,006.3  

Investment only

     341.0     431.6     508.0  

Full service payout

     955.2     1,283.0     560.7  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total Guaranteed

     1,296.2     1,714.6     1,068.7  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total Retirement and Investor Services

     4,847.6     4,834.9     4,075.0  

Principal Global Investors (1)

     719.2     591.2     546.3  

Principal International

     1,150.0     942.7     909.0  

U.S. Insurance Solutions:

                    

Individual life insurance

     1,483.0     1,423.3     1,432.0  

Specialty benefits insurance

     1,623.6     1,571.4     1,507.9  

Eliminations

     (0.2 )   —     —  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total U.S. Insurance Solutions

     3,106.4     2,994.7     2,939.9  

Corporate

     (215.8 )   (188.1 )   (189.2 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total operating revenues

   $ 9,607.4   $ 9,175.4   $ 8,281.0  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

Total operating revenues

   $ 9,607.4   $ 9,175.4   $ 8,281.0  

Net realized capital gains (losses), net of related revenue adjustments

     (320.0 )   14.7     (221.5 )

Exited group medical insurance business

     2.1     25.0     606.3  

Assumption change within our Individual Life business

     —     —     4.9  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total revenues per consolidated statements of operations

   $ 9,289.5   $ 9,215.1   $ 8,670.7  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               
(1)
Reflects inter-segment revenues of $243.7 million, $217.6 million and $212.2 million for the years ended December 31, 2013, 2012 and 2011, respectively.