EX-12 2 a10-10512_1ex12.htm EX-12

Exhibit 12

 

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

 

 

 

 

For the six months ended
June 30,

 

For the years ended
December 31,

 

 

 

 

2010

 

2009

 

2009

 

2008

 

2007

 

2006

 

2005

 

 

 

 

(in millions)

 

1.

Income from continuing operations before income taxes

 

$

414.1

 

$

328.0

 

$

745.8

 

$

461.3

 

$

1,072.4

 

$

1,351.6

 

$

1,138.6

 

2.

Interest expense

 

61.0

 

53.8

 

118.0

 

110.3

 

115.3

 

86.0

 

77.8

 

3.

Interest factor of rental expense

 

3.3

 

4.4

 

6.7

 

8.8

 

12.3

 

11.1

 

7.0

 

4.

Undistributed income from equity investees

 

(48.7

)

(23.6

)

(69.4

)

(20.4

)

(71.6

)

(62.7

)

(34.1

)

5.

Earnings before interest credited on investment products

 

429.7

 

362.6

 

801.1

 

560.0

 

1,128.4

 

1,386.0

 

1,189.3

 

6.

Interest credited on investment products

 

306.4

 

388.7

 

725.3

 

993.5

 

988.3

 

901.1

 

832.2

 

7.

Earnings

 

$

736.1

 

$

751.3

 

$

1,526.4

 

$

1,553.5

 

$

2,116.7

 

$

2,287.1

 

$

2,021.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.

Interest expense

 

$

61.0

 

$

53.8

 

$

118.0

 

$

110.3

 

$

115.3

 

$

86.0

 

$

77.8

 

9.

Interest factor of rental expense

 

3.3

 

4.4

 

6.7

 

8.8

 

12.3

 

11.1

 

7.0

 

10.

Preferred stock dividends by registrant

 

16.5

 

16.5

 

33.0

 

33.0

 

33.0

 

33.0

 

17.7

 

11.

Fixed charges before interest credited on investment products

 

80.8

 

74.7

 

157.7

 

152.1

 

160.6

 

130.1

 

102.5

 

12.

Interest credited on investment products

 

306.4

 

388.7

 

725.3

 

993.5

 

988.3

 

901.1

 

832.2

 

13.

Fixed charges

 

$

387.2

 

$

463.4

 

$

883.0

 

$

1,145.6

 

$

1,148.9

 

$

1,031.2

 

$

934.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14.

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

 

5.3

 

4.9

 

5.1

 

3.7

 

7.0

 

10.7

 

11.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15.

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

 

1.9

 

1.6

 

1.7

 

1.4

 

1.8

 

2.2

 

2.2