EX-12 3 a06-21547_1ex12.htm EX-12

Exhibit 12

Principal Financial Group, Inc.
Computation of Earnings to Fixed Charges Ratio

 

 

 

 

For the nine months
ended September 30,

 

For the years ended
December 31,

 

 

 

 

 

2006

 

2005

 

2005

 

2004

 

2003

 

2002

 

2001

 

 

 

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.

 

Income from continuing operations before income taxes

 

$

1,001.6

 

$

848.9

 

$

1,124.3

 

$

879.1

 

$

820.3

 

$

371.5

 

$

249.9

 

2.

 

Interest expense

 

63.9

 

60.6

 

81.1

 

96.9

 

117.5

 

99.7

 

97.2

 

3.

 

Interest factor of rental expense

 

5.2

 

3.4

 

7.0

 

4.6

 

4.8

 

8.0

 

9.4

 

4.

 

Undistributed (income) loss from equity investees

 

(45.9

)

(26.1

)

(34.1

)

(19.4

)

(18.3

)

4.3

 

(17.4

)

5.

 

Earnings before interest credited on investment products

 

1,024.8

 

886.8

 

1,178.3

 

961.2

 

924.3

 

483.5

 

339.1

 

6.

 

Interest credited on investment products

 

664.8

 

619.0

 

832.2

 

763.7

 

735.7

 

743.4

 

773.1

 

7.

 

Earnings

 

$

1,689.6

 

$

1,505.8

 

$

2,010.5

 

$

1,724.9

 

$

1,660.0

 

$

1,226.9

 

$

1,112.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.

 

Interest expense

 

$

63.9

 

$

60.6

 

$

81.1

 

$

96.9

 

$

117.5

 

$

99.7

 

$

97.2

 

9.

 

Interest factor of rental expense

 

5.2

 

3.4

 

7.0

 

4.6

 

4.8

 

8.0

 

9.4

 

10.

 

Preferred stock dividends by registrant

 

24.7

 

9.4

 

17.7

 

—

 

—

 

—

 

—

 

11.

 

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

 

—

 

—

 

—

 

—

 

1.2

 

0.4

 

—

 

12.

 

Fixed charges before interest credited on investment products

 

93.8

 

73.4

 

105.8

 

101.5

 

123.5

 

108.1

 

106.6

 

13.

 

Interest credited on investment products

 

664.8

 

619.0

 

832.2

 

763.7

 

735.7

 

743.4

 

773.1

 

14.

 

Fixed charges

 

$

758.6

 

$

692.4

 

$

938.0

 

$

865.2

 

$

859.2

 

$

851.5

 

$

879.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15.

 

Ratio of earnings to fixed charges before interest credited on investment products (Line item 5/Line item 12)

 

10.9

 

12.1

 

11.1

 

9.5

 

7.5

 

4.5

 

3.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16.

 

Ratio of earnings to fixed charges (Line item 7/Line item 14)

 

2.2

 

2.2

 

2.1

 

2.0

 

1.9

 

1.4

 

1.3

 

 

186