EX-12 2 a05-7797_1ex12.htm EX-12

Exhibit 12

 

Principal Financial Group, Inc.

 

Computation of Earnings to Fixed Charges Ratio

 

 

 

For the
three months
ended
March 31,

 

For the year ended December 31,

 

 

 

2005

 

2004

 

2004

 

2003

 

2002

 

2001

 

2000

 

 

 

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

$

280.5

 

$

207.8

 

$

881.6

 

$

824.3

 

$

371.5

 

$

249.9

 

$

751.1

 

Interest expense

 

12.6

 

29.0

 

93.3

 

114.7

 

106.5

 

94.2

 

116.8

 

Interest factor of rental expense

 

1.2

 

1.2

 

4.6

 

4.7

 

8.0

 

9.4

 

15.1

 

Undistributed income from equity investees

 

(5.5

)

—

 

(19.4

)

(18.3

)

4.3

 

(17.4

)

(27.1

)

Earnings before interest credited on investment products

 

288.8

 

238.0

 

960.1

 

925.4

 

490.3

 

336.1

 

855.9

 

Interest credited on investment products

 

201.0

 

179.7

 

763.7

 

735.7

 

743.4

 

773.1

 

723.5

 

Earnings

 

$

489.8

 

$

417.7

 

$

1,723.8

 

$

1,661.1

 

$

1,233.7

 

$

1,109.2

 

$

1,579.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

12.6

 

$

29.0

 

$

93.3

 

$

114.7

 

$

106.5

 

$

94.2

 

$

116.8

 

Interest factor of rental expense

 

1.2

 

1.2

 

4.6

 

4.7

 

8.0

 

9.4

 

15.1

 

Preferred stock dividend requirements of majority-owned subsidiaries (non-intercompany)

 

—

 

—

 

—

 

1.2

 

0.4

 

—

 

—

 

Fixed charges before interest credited on investment products

 

13.8

 

30.2

 

97.9

 

120.6

 

114.9

 

103.6

 

131.9

 

Interest credited on investment products.

 

201.0

 

179.7

 

763.7

 

735.7

 

743.4

 

773.1

 

723.5

 

Fixed charges

 

$

214.8

 

$

209.9

 

$

861.6

 

$

856.3

 

$

858.3

 

$

876.7

 

$

855.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges before interest credited on investment products (Line item 5/Line item 11)

 

21.0

 

7.9

 

9.8

 

7.7

 

4.3

 

3.2

 

6.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges (Line item 7/Line item 13)

 

2.3

 

2.0

 

2.0

 

1.9

 

1.4

 

1.3

 

1.8

 

 

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