Segment Information (Tables)

12 Months Ended

Dec. 31, 2017

Segment Information

Reconciliation of Assets from Segment to Consolidated (Table)

	December 31, 2017		December 31, 2016
	(in millions)
Assets:
Retirement and Income Solutions	$	169,757.8	$	152,721.7
Principal Global Investors		2,322.9		1,952.1
Principal International		51,684.0		45,118.3
U.S. Insurance Solutions		25,092.9		23,144.2
Corporate		5,083.6		5,078.0
Total consolidated assets	$	253,941.2	$	228,014.3

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

	For the year ended December 31,
	2017			2016			2015
	(in millions)
Operating revenues by segment:
Retirement and Income Solutions:
Retirement and Income Solutions — Fee	$	1,821.0		$	1,743.2		$	1,774.0
Retirement and Income Solutions — Spread		5,344.6			4,407.5			4,392.9
Total Retirement and Income Solutions (1)		7,165.6			6,150.7			6,166.9
Principal Global Investors (2)		1,444.4			1,387.1			1,343.5
Principal International		1,251.5			1,252.0			1,220.6
U.S. Insurance Solutions:
Specialty benefits insurance		2,171.8			2,011.4			1,868.1
Individual life insurance		1,731.0			1,626.1			1,572.7
Eliminations		(0.2	)		(0.2	)		(0.2	)
Total U.S. Insurance Solutions		3,902.6			3,637.3			3,440.6
Corporate		(60.8	)		(46.3	)		(50.5	)
Total segment operating revenues		13,703.3			12,380.8			12,121.1
Net realized capital gains (losses), net of related revenue adjustments		472.2			80.9			(162.7	)
Adjustments related to equity method investments		(82.3	)		(67.6	)		(55.5	)
Other income on a tax indemnification		—			—			60.2
Exited group medical insurance business		—			—			1.3
Total revenues per consolidated statements of operations	$	14,093.2		$	12,394.1		$	11,964.4
Pre-tax operating earnings (losses) by segment:
Retirement and Income Solutions	$	899.8		$	794.5		$	740.1
Principal Global Investors		469.7			443.8			388.5
Principal International		330.0			288.1			271.3
U.S. Insurance Solutions		384.7			361.2			429.5
Corporate		(210.5	)		(218.9	)		(192.3	)
Total segment pre-tax operating earnings		1,873.7			1,668.7			1,637.1
Pre-tax net realized capital gains (losses), as adjusted (3)		520.3			46.3			(170.7	)
Pre-tax other adjustments (4)		(70.0	)		(86.4	)		11.7
Adjustments related to equity method investments and noncontrolling interest		(71.8	)		(36.9	)		(47.3	)
Income before income taxes per consolidated statements of operations	$	2,252.2		$	1,591.7		$	1,430.8

(1)	Reflects inter-segment revenues of $402.8 million, $373.3 million and $424.5 million for the years ended December 31, 2017, 2016 and 2015, respectively.
(2)	Reflects inter-segment revenues of $250.9 million, $235.7 million and $220.6 million for the years ended December 31, 2017, 2016 and 2015, respectively.
(3)	Pre-tax net realized capital gains (losses), as adjusted, is derived as follows:

	For the year ended December 31,
	2017			2016			2015
	(in millions)
Net realized capital gains (losses)	$	524.2		$	171.1		$	(51.1	)
Derivative and hedging-related adjustments		(59.4	)		(94.1	)		(111.7	)
Market value adjustments to fee revenues		(0.1	)		(2.5	)		(1.1	)
Adjustments related to equity method investments		1.4			0.1			—
Adjustments related to sponsored investment funds		6.3			6.1			1.3
Recognition of front-end fee revenue		(0.2	)		0.2			(0.1	)
Net realized capital gains (losses), net of related revenue adjustments		472.2			80.9			(162.7	)
Amortization of deferred acquisition costs and other actuarial balances		55.0			(77.4	)		(14.0	)
Capital (gains) losses distributed		(55.0	)		(7.2	)		6.2
Market value adjustments of embedded derivatives		48.1			50.0			(0.2	)
Pre-tax net realized capital gains (losses), as adjusted (a)	$	520.3		$	46.3		$	(170.7	)

(a)	As adjusted before noncontrolling interest capital gains (losses) and net realized capital gains (losses) associated with exited group medical insurance business.
(4)		For the year ended December 31, 2017, pre-tax other adjustments included the negative effect of a contribution to The Principal Financial Group Foundation, Inc.

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

	For the year ended December 31,
	2017			2016			2015
	(in millions)
Income tax expense (benefit) by segment:
Retirement and Income Solutions	$	109.5		$	98.6		$	76.1
Principal Global Investors		181.9			166.8			148.4
Principal International		81.8			62.7			51.5
U.S. Insurance Solutions		124.2			118.8			143.1
Corporate		(102.3	)		(109.3	)		(77.2	)
Total segment income taxes from operating earnings		395.1			337.6			341.9
Tax expense (benefit) related to net realized capital losses, as adjusted		209.1			(6.6	)		(45.6	)
Tax benefit related to other after-tax adjustments (1)		(594.5	)		(34.4	)		(63.2	)
Certain adjustments related to equity method investments and noncontrolling interest		(82.0	)		(66.7	)		(55.5	)
Total income taxes per consolidated statements of operations	$	(72.3	)	$	229.9		$	177.6

(1) The 2017 tax benefit includes $568.3 million associated with the U.S. tax reform.

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

	For the year ended December 31,
	2017		2016		2015
	(in millions)
Depreciation and amortization expense by segment:
Retirement and Income Solutions	$	30.6	$	30.4	$	28.3
Principal Global Investors		19.8		18.8		16.5
Principal International		53.1		50.1		69.3
U.S. Insurance Solutions		28.1		26.8		23.1
Corporate		8.2		7.4		6.5
Total depreciation and amortization expense included in our consolidated statements of operations	$	139.8	$	133.5	$	143.7