|
|
|
|
For the three months ended
September 30, |
|
For the nine months ended
September 30, |
|
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
|
|
(in millions) |
|
|
Operating revenues by segment: |
|
|
|
|
|
|
|
|
|
|
Retirement and Investor Services |
|
$ |
995.5 |
|
$ |
997.0 |
|
$ |
3,057.4 |
|
$ |
3,031.0 |
|
|
Principal Global Investors |
|
132.9 |
|
118.0 |
|
394.5 |
|
346.1 |
|
|
Principal International |
|
220.2 |
|
200.1 |
|
653.8 |
|
569.4 |
|
|
U.S. Insurance Solutions |
|
734.3 |
|
690.7 |
|
2,246.6 |
|
2,070.1 |
|
|
Corporate |
|
(56.6 |
) |
(19.1 |
) |
(130.3 |
) |
(81.2 |
) |
|
Total segment operating revenues |
|
2,026.3 |
|
1,986.7 |
|
6,222.0 |
|
5,935.4 |
|
|
Net realized capital losses, net of related revenue adjustments |
|
(55.2 |
) |
(42.3 |
) |
(124.8 |
) |
(199.5 |
) |
|
Exited group medical insurance business |
|
117.7 |
|
344.1 |
|
553.4 |
|
1,050.2 |
|
|
Total revenues per consolidated statements of operations |
|
$ |
2,088.8 |
|
$ |
2,288.5 |
|
$ |
6,650.6 |
|
$ |
6,786.1 |
|
|
Operating earnings (loss) by segment, net of related income taxes: |
|
|
|
|
|
|
|
|
|
|
Retirement and Investor Services |
|
$ |
128.6 |
|
$ |
147.4 |
|
$ |
449.2 |
|
$ |
433.4 |
|
|
Principal Global Investors |
|
19.1 |
|
15.0 |
|
56.5 |
|
39.3 |
|
|
Principal International |
|
36.6 |
|
33.1 |
|
102.6 |
|
106.0 |
|
|
U.S. Insurance Solutions |
|
47.6 |
|
47.3 |
|
156.6 |
|
141.4 |
|
|
Corporate |
|
(40.0 |
) |
(23.9 |
) |
(103.9 |
) |
(89.4 |
) |
|
Total segment operating earnings, net of related income taxes |
|
191.9 |
|
218.9 |
|
661.0 |
|
630.7 |
|
|
Net realized capital losses, as adjusted (1) |
|
(63.7 |
) |
(30.9 |
) |
(94.9 |
) |
(156.9 |
) |
|
Other after-tax adjustments (2) |
|
(64.5 |
) |
(45.8 |
) |
(48.1 |
) |
(6.8 |
) |
|
Net income available to common stockholders per consolidated statements of operations |
|
$ |
63.7 |
|
$ |
142.2 |
|
$ |
518.0 |
|
$ |
467.0 |
|
(1) Net realized capital gains (losses), as adjusted, is derived as follows:
|
|
|
For the three months ended
September 30, |
|
For the nine months ended
September30, |
|
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
|
|
(in millions) |
|
|
Net realized capital gains (losses): |
|
|
|
|
|
|
|
|
|
|
Net realized capital losses |
|
$ |
(30.7 |
) |
$ |
(20.7 |
) |
$ |
(51.0 |
) |
$ |
(132.6 |
) |
|
Certain derivative and hedging-related adjustments |
|
(25.4 |
) |
(20.5 |
) |
(73.2 |
) |
(69.8 |
) |
|
Certain market value adjustments to fee revenues |
|
— |
|
(2.3 |
) |
(0.1 |
) |
(2.3 |
) |
|
Recognition of front-end fee revenues |
|
0.9 |
|
1.2 |
|
(0.5 |
) |
5.2 |
|
|
Net realized capital losses, net of related revenue adjustments |
|
(55.2 |
) |
(42.3 |
) |
(124.8 |
) |
(199.5 |
) |
|
Amortization of deferred policy acquisition and sales inducement costs |
|
(55.0 |
) |
(26.7 |
) |
(47.1 |
) |
(71.3 |
) |
|
Capital (gains) losses distributed |
|
9.7 |
|
0.1 |
|
(2.0 |
) |
(2.2 |
) |
|
Certain market value adjustments of embedded derivatives |
|
0.9 |
|
0.9 |
|
64.7 |
|
6.7 |
|
|
Net realized capital (gains) losses associated with exited group medical insurance business |
|
— |
|
1.8 |
|
(0.2 |
) |
2.4 |
|
|
Noncontrolling interest capital (gains) losses |
|
6.4 |
|
0.6 |
|
(30.4 |
) |
(4.1 |
) |
|
Income tax effect |
|
29.5 |
|
34.7 |
|
44.9 |
|
111.1 |
|
|
Net realized capital losses, as adjusted |
|
$ |
(63.7 |
) |
$ |
(30.9 |
) |
$ |
(94.9 |
) |
$ |
(156.9 |
) |
(2) For the three months ended September 30, 2011, other after-tax adjustments included (1) the negative effect resulting from (a) the impact of a court ruling on some uncertain tax positions ($68.9 million) and (b) our estimated obligation associated with Executive Life of New York’s liquidation petition ($10.5 million) and (2) the positive effect of gains associated with our exited group medical insurance business that does not yet qualify for discontinued operations accounting treatment under U.S. GAAP ($14.9 million).
For the three months ended September 30, 2010, other after-tax adjustments included the negative effect of losses associated with our exited group medical insurance business that does not yet qualify for discontinued operations accounting treatment under U.S. GAAP ($45.8 million).
For the nine months ended September 30, 2011, other after-tax adjustments included (1) the negative effect resulting from (a) the impact of a court ruling on some uncertain tax positions ($68.9 million), (b) a contribution made to The Principal Financial Group Foundation, Inc. ($19.5 million) and (c) our estimated obligation associated with Executive Life of New York’s liquidation petition ($10.5 million) and (2) the positive effect of gains associated with our exited group medical insurance business that does not yet qualify for discontinued operations accounting treatment under U.S. GAAP ($50.8 million).
For the nine months ended September 30, 2010, other after-tax adjustments included the negative effect resulting from the tax impact of healthcare reform, which eliminates the tax deductibility of retiree prescription drug expenses related to our employees incurred after 2012 ($7.8 million) and the positive effect of gains associated with our exited group medical insurance business that does not yet qualify for discontinued operations accounting treatment under U.S. GAAP ($1.0 million). |