Segment Information (Tables)

9 Months Ended

Sep. 30, 2011

Segment Information

Reconciliation of Assets from Segment to Consolidated (Table)

	September 30,2011		December 31, 2010
	(in millions)
Assets:
Retirement and Investor Services	$	105,200.8	$	110,043.0
Principal Global Investors	1,615.3		1,308.1
Principal International	15,366.4		12,774.5
U.S. Insurance Solutions	17,318.1		16,558.2
Corporate	3,801.7		4,947.3
Total consolidated assets	$	143,302.3	$	145,631.1

Reconciliation of Operating Revenues and Operating Earnings (Losses) by Segment (Table)

	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).

Operating Revenue for Products and Services by Segment (Table)

	For the three months ended September 30,						For the nine months ended September 30,
	2011			2010			2011			2010
	(in millions)
Retirement and Investor Services:
Full-service accumulation	$	331.8		$	328.8		$	1,017.3		$	991.8
Principal Funds	138.8			123.7			424.6			372.3
Individual annuities	278.2			253.2			840.6			759.5
Bank and trust services	26.0			23.5			74.4			68.4
Eliminations	(27.7		)	(24.3		)	(85.1		)	(74.1		)
Total Accumulation	747.1			704.9			2,271.8			2,117.9
Investment only	123.1			157.0			386.5			495.3
Full-service payout	125.3			135.1			399.1			417.8
Total Guaranteed	248.4			292.1			785.6			913.1
Total Retirement and Investor Services	995.5			997.0			3,057.4			3,031.0
Principal Global Investors (1)	132.9			118.0			394.5			346.1
Principal International	220.2			200.1			653.8			569.4
U.S. Insurance Solutions:
Individual life insurance	357.9			339.5			1,119.3			1,019.9
Specialty benefits insurance	376.4			351.2			1,127.3			1,050.2
Total U.S. Insurance Solutions	734.3			690.7			2,246.6			2,070.1
Corporate	(56.6		)	(19.1		)	(130.3		)	(81.2		)
Total operating revenues	$	2,026.3		$	1,986.7		$	6,222.0		$	5,935.4
Total operating revenues	$	2,026.3		$	1,986.7		$	6,222.0		$	5,935.4
Net realized capital gains (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

(1) Reflects inter-segment revenues of $54.0 million and $48.9 million for the three months ended September 30, 2011 and 2010, respectively, and $161.5 million and $148.2 million for the nine months ended September 30, 2011 and 2010, respectively. These revenues are eliminated within the Corporate segment.