Schedule II — Condensed Financial Information of Registrant (Parent Only)
Statements of Financial Position

	December 31,
	2017			2016
	(in millions)
Assets
Fixed maturities, trading	$	351.8		$	—
Cash and cash equivalents		842.8			882.6
Other investments		10.2			9.8
Income taxes receivable		44.2			85.6
Deferred income taxes		329.4			473.2
Amounts receivable from subsidiaries		4.4			4.5
Other assets		12.8			10.4
Investment in unconsolidated entities		15,063.2			12,597.9

Total assets	$	16,658.8		$	14,064.0


Liabilities
Long-term debt	$	3,128.1		$	3,126.4
Accrued investment payable		23.1			23.4
Pension liability		658.3			686.4
Other liabilities		—			0.5

Total liabilities		3,809.5			3,836.7
Stockholders' equity
Common stock, par value $.01 per share — 2,500 million shares authorized, 474.1 million and 469.2 million shares issued, and 289.0 million and 287.7 million shares outstanding in 2017 and 2016		4.7			4.7
Additional paid-in capital		9,925.2			9,686.0
Retained earnings		9,482.9			7,720.4
Accumulated other comprehensive income (loss)		165.5			(675.2	)
Treasury stock, at cost (185.1 million and 181.5 million shares in 2017 and 2016)		(6,729.0	)		(6,508.6	)

Total stockholders' equity attributable to Principal Financial Group, Inc.		12,849.3			10,227.3

Total liabilities and stockholders' equity	$	16,658.8		$	14,064.0

See accompanying notes.

Statements of Operations

	For the year ended December 31,
	2017			2016			2015
	(in millions)
Revenues
Fees and other revenues	$	7.8		$	—		$	—
Net investment income		9.7			3.4			1.6
Net realized capital losses		(0.6	)		—			—

Total revenues		16.9			3.4			1.6
Expenses
Other operating costs and expenses		238.1			312.3			175.4

Total expenses		238.1			312.3			175.4

Loss before income taxes		(221.2	)		(308.9	)		(173.8	)
Income taxes (benefits)		63.1			(134.9	)		(71.2	)
Equity in the net income of subsidiaries		2,594.7			1,490.5			1,336.6

Net income attributable to Principal Financial Group, Inc.		2,310.4			1,316.5			1,234.0
Less:
Preferred stock dividends		—			—			16.5
Excess of redemption value over carrying value of preferred shares redeemed		—			—			8.2

Net income available to common stockholders	$	2,310.4		$	1,316.5		$	1,209.3

See accompanying notes.

Statements of Cash Flows

	For the year ended December 31,
	2017			2016			2015
	(in millions)
Operating activities
Net income	$	2,310.4		$	1,316.5		$	1,234.0
Adjustments to reconcile net income to net cash used in operating activities:
Net realized capital losses		0.6			—			—
Stock-based compensation		3.0			3.6			3.9
Equity in the net income of subsidiaries		(2,594.7	)		(1,490.5	)		(1,336.6	)
Changes in:
Net cash flows for trading securities		(352.6	)		—			—
Current and deferred income taxes (benefits)		163.8			(60.3	)		(20.9	)
Other		26.3			42.1			34.5

Net cash used in operating activities		(443.2	)		(188.6	)		(85.1	)
Investing activities
Net purchases of property and equipment		(0.1	)		(0.1	)		—
Net change in other investments		(1.1	)		1.3			5.4
Dividends and returns of capital received from unconsolidated entities		1,002.5			1,295.3			685.5

Net cash provided by investing activities		1,001.3			1,296.5			690.9
Financing activities
Issuance of common stock		162.5			37.8			76.1
Acquisition of treasury stock		(220.4	)		(277.3	)		(300.6	)
Excess tax benefits from share-based payment arrangements		—			0.7			0.7
Dividends to common stockholders		(540.0	)		(464.9	)		(441.0	)
Dividends to preferred stockholders		—			—			(16.5	)
Preferred stock redemption		—			—			(550.0	)
Principal repayments of long-term debt		—			(744.5	)		—
Issuance of long-term debt		—			644.2			791.8

Net cash used in financing activities		(597.9	)		(804.0	)		(439.5	)

Net increase (decrease) in cash and cash equivalents		(39.8	)		303.9			166.3
Cash and cash equivalents at beginning of year		882.6			578.7			412.4

Cash and cash equivalents at end of year	$	842.8		$	882.6		$	578.7

See accompanying notes.

(1) Basis of Presentation

The accompanying condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto of Principal Financial Group, Inc.

In the parent company only financial statements, our investment in unconsolidated entities is stated at cost plus equity in undistributed earnings of subsidiaries.

Principal Financial Group, Inc. sponsors nonqualified benefit plans for select employees and agents and is responsible for the obligations of these plans. Nonqualified plan assets are held in Rabbi trusts for the benefit of all nonqualified plan participants. The invested assets and benefit plan liabilities reported in the statements of financial position exclude amounts held in these trusts. The Rabbi trusts had $643.3 million and $570.9 million of plan assets and $524.7 million and $477.3 million of benefit plan liabilities as of December 31, 2017 and 2016, respectively.

During November 2016, the parent company became the sponsor of the defined contribution plans and deferred compensation plans discussed in Item 8. "Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements, Note 11, Employee and Agent Benefits." Prior to November 2016, Principal Life Insurance Company, an indirect wholly owned subsidiary of the parent company, was the sponsor of these plans.

(2) Dividends and Returns of Capital Received from (Contributions to) Unconsolidated Entities

The parent company received cash dividends and returns of capital totaling $1,002.5 million, $1,295.3 million and $685.5 million from subsidiaries in 2017, 2016 and 2015, respectively.

(3) Supplemental Disclosures of Non-Cash Investing Activity

The parent company's assumption of the deferred income tax asset and net plan assets associated with the defined contribution plans and deferred compensation plans previously sponsored by Principal Life Insurance Company resulted in a non-cash increase in the parent company's investment in subsidiary of $74.6 million in 2016.