EX-12 2 a09-27109_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,

 

 

 

 

 

2009

 

2008

 

2008

 

2007

 

2006

 

2005

 

2004

 

 

 

 

 

(in millions)

 

1.

 

Income from continuing operations before income taxes

 

$

576.3

 

$

526.2

 

$

461.3

 

$

1,072.4

 

$

1,351.6

 

$

1,138.6

 

$

878.7

 

2.

 

Interest expense

 

87.7

 

83.2

 

110.3

 

115.3

 

86.0

 

77.8

 

93.5

 

3.

 

Interest factor of rental expense

 

6.6

 

9.2

 

8.8

 

12.3

 

11.1

 

7.0

 

4.6

 

4.

 

Undistributed income from equity investees

 

(44.2

)

(26.1

)

(20.4

)

(71.6

)

(62.7

)

(34.1

)

(19.4

)

5.

 

Earnings before interest credited on investment products

 

626.4

 

592.5

 

560.0

 

1,128.4

 

1,386.0

 

1,189.3

 

957.4

 

6.

 

Interest credited on investment products

 

560.9

 

739.0

 

993.5

 

988.3

 

901.1

 

832.2

 

763.7

 

7.

 

Earnings

 

$

1,187.3

 

$

1,331.5

 

$

1,553.5

 

$

2,116.7

 

$

2,287.1

 

$

2,021.5

 

$

1,721.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.

 

Interest expense

 

$

87.7

 

$

83.2

 

$

110.3

 

$

115.3

 

$

86.0

 

$

77.8

 

$

93.5

 

9.

 

Interest factor of rental expense

 

6.6

 

9.2

 

8.8

 

12.3

 

11.1

 

7.0

 

4.6

 

10.

 

Preferred stock dividends by registrant

 

24.7

 

24.7

 

33.0

 

33.0

 

33.0

 

17.7

 

—

 

11.

 

Fixed charges before interest credited on investment products

 

119.0

 

117.1

 

152.1

 

160.6

 

130.1

 

102.5

 

98.1

 

12.

 

Interest credited on investment products

 

560.9

 

739.0

 

993.5

 

988.3

 

901.1

 

832.2

 

763.7

 

13.

 

Fixed charges

 

$

679.9

 

$

856.1

 

$

1,145.6

 

$

1,148.9

 

$

1,031.2

 

$

934.7

 

$

861.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14.

 

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

 

5.3

 

5.1

 

3.7

 

7.0

 

10.7

 

11.6

 

9.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15.

 

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

 

1.7

 

1.6

 

1.4

 

1.8

 

2.2

 

2.2

 

2.0

 

 

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