Segment Information (Tables)

12 Months Ended

Dec. 31, 2014

Reconciliation of Assets from Segment to Consolidated (Table)

	December 31, 2014		December 31, 2013
	(in millions)
Assets:
Retirement and Investor Services	$	138,549.4	$	128,736.7
Principal Global Investors		1,175.1		1,312.1
Principal International		53,531.8		54,243.6
U.S. Insurance Solutions		21,554.5		20,033.6
Corporate		4,276.2		3,865.4

Total consolidated assets	$	219,087.0	$	208,191.4

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

	For the year ended December 31,
	2014			2013			2012
	(in millions)
Operating revenues by segment:
Retirement and Investor Services	$	5,523.3		$	4,847.6		$	4,834.9
Principal Global Investors		725.9			719.2			591.2
Principal International		1,275.4			1,150.0			942.7
U.S. Insurance Solutions		3,262.6			3,106.4			2,994.7
Corporate		(232.4	)		(215.8	)		(188.1	)

Total segment operating revenues		10,554.8			9,607.4			9,175.4
Net realized capital gains (losses), net of related revenue adjustments		(77.4	)		(320.0	)		14.7
Exited group medical insurance business		0.2			2.1			25.0

Total revenues per consolidated statements of operations	$	10,477.6		$	9,289.5		$	9,215.1


Operating earnings (loss) by segment, net of related income taxes:
Retirement and Investor Services	$	828.1		$	694.4		$	575.1
Principal Global Investors		116.0			102.6			81.2
Principal International		268.0			215.2			154.1
U.S. Insurance Solutions		231.3			196.6			138.2
Corporate		(125.5	)		(148.9	)		(139.8	)

Total segment operating earnings, net of related income taxes		1,317.9			1,059.9			808.8
Net realized capital gains (losses), as adjusted (1)		(100.5	)		(179.1	)		39.0
Other after-tax adjustments (2)		(106.3	)		(1.1	)		(74.2	)

Net income available to common stockholders per consolidated statements of operations	$	1,111.1		$	879.7		$	773.6

(1)	Net realized capital gains (losses), as adjusted, is derived as follows:

		For the year ended December 31,
		2014			2013			2012
		(in millions)
Net realized capital gains (losses):
Net realized capital gains (losses)		$	14.7		$	(225.2	)	$	114.1
Certain derivative and hedging-related adjustments			(92.8	)		(93.9	)		(98.9	)
Certain market value adjustments to fee revenues			—			—			(0.3	)
Recognition of front-end fee (revenue) expense			0.7			(0.9	)		(0.2	)

Net realized capital gains (losses), net of related revenue adjustments			(77.4	)		(320.0	)		14.7
Amortization of deferred acquisition costs and other actuarial balances			(49.3	)		47.1			36.6
Capital gains distributed			(21.2	)		(25.8	)		(12.2	)
Certain market value adjustments of embedded derivatives			4.8			18.4			(0.6	)
Net realized capital losses associated with exited group medical insurance business			—			—			0.2
Noncontrolling interest capital gains			(1.0	)		(0.2	)		(8.3	)
Income tax effect			43.6			101.4			8.6

Net realized capital gains (losses), as adjusted		$	(100.5	)	$	(179.1	)	$	39.0


(2)	For the year ended December 31, 2014, other after-tax adjustments included the negative effect of (a) an increase in net deferred tax liabilities resulting from third quarter 2014 enactment of tax legislation in Chile ($58.1 million) (b) the impact of a court ruling on some uncertain tax positions ($47.5 million) and (c) the effect of losses associated with our exited group medical insurance business that does not qualify for discontinued operations accounting treatment under U.S. GAAP ($0.7 million). 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).

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

	For the year ended December 31,
	2014			2013			2012
	(in millions)
Income tax expense (benefit) by segment:
Retirement and Investor Services	$	200.5		$	195.6		$	150.0
Principal Global Investors		63.8			55.5			43.5
Principal International		30.3			28.0			0.6
U.S. Insurance Solutions		112.8			94.0			61.3
Corporate		(89.6	)		(83.2	)		(69.6	)

Total segment income taxes from operating earnings		317.8			289.9			185.8
Tax benefit related to net realized capital losses, as adjusted		(43.6	)		(101.4	)		(8.6	)
Tax expense (benefit) related to other after-tax adjustments		44.3			(0.6	)		(42.6	)

Total income taxes expense per consolidated statements of operations	$	318.5		$	187.9		$	134.6

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

	For the year ended December 31,
	2014		2013		2012
	(in millions)
Depreciation and amortization expense by segment:
Retirement and Investor Services	$	31.1	$	26.7	$	26.3
Principal Global Investors		14.8		11.8		13.3
Principal International		51.6		47.8		18.9
U.S. Insurance Solutions		21.2		17.2		17.0
Corporate		4.0		4.6		5.4

Total segment depreciation and amortization expense included in operating earnings		122.7		108.1		80.9

Depreciation and amortization expense related to other after-tax adjustments		—		1.4		6.1

Total depreciation and amortization expense included in our consolidated statements of operations	$	122.7	$	109.5	$	87.0

Operating Revenue for Products and Services by Segment (Table)

	For the year ended December 31,
	2014			2013			2012
	(in millions)
Retirement and Investor Services:
Full service accumulation	$	1,563.0		$	1,470.7		$	1,357.0
Principal Funds		861.9			765.8			619.6
Individual annuities		1,488.9			1,366.5			1,162.4
Bank and trust services		84.2			95.2			101.6
Eliminations		(155.2	)		(146.8	)		(120.3	)

Total Accumulation		3,842.8			3,551.4			3,120.3
Investment only		308.1			341.0			431.6
Full service payout		1,372.4			955.2			1,283.0

Total Guaranteed		1,680.5			1,296.2			1,714.6

Total Retirement and Investor Services		5,523.3			4,847.6			4,834.9
Principal Global Investors (1)		725.9			719.2			591.2
Principal International		1,275.4			1,150.0			942.7
U.S. Insurance Solutions:
Individual life insurance		1,535.7			1,483.0			1,423.3
Specialty benefits insurance		1,727.1			1,623.6			1,571.4
Eliminations		(0.2	)		(0.2	)		—

Total U.S. Insurance Solutions		3,262.6			3,106.4			2,994.7
Corporate		(232.4	)		(215.8	)		(188.1	)

Total operating revenues	$	10,554.8		$	9,607.4		$	9,175.4


Total operating revenues	$	10,554.8		$	9,607.4		$	9,175.4
Net realized capital gains (losses), net of related revenue adjustments		(77.4	)		(320.0	)		14.7
Exited group medical insurance business		0.2			2.1			25.0

Total revenues per consolidated statements of operations	$	10,477.6		$	9,289.5		$	9,215.1

(1)	Reflects inter-segment revenues of $292.5 million, $243.7 million and $217.6 million for the years ended December 31, 2014, 2013 and 2012, respectively.