Segment Information (Tables)

9 Months Ended

Sep. 30, 2014

Reconciliation of Assets from Segment to Consolidated (Table)

	September 30, 2014		December 31, 2013
	(in millions)
Assets:
Retirement and Investor Services	$	133,306.2	$	128,736.7
Principal Global Investors	1,200.1		1,312.1
Principal International	56,974.6		54,243.6
U.S. Insurance Solutions	21,215.0		20,033.6
Corporate	3,726.9		3,865.4
Total consolidated assets	$	216,422.8	$	208,191.4

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

	For the three months ended						For the nine months ended
	September 30,						September 30,
	2014			2013			2014			2013
	(in millions)
Operating revenues by segment:
Retirement and Investor Services	$	1,324.7		$	1,136.5		$	3,851.0		$	3,387.6
Principal Global Investors	173.6			160.9			517.9			482.8
Principal International	294.5			303.3			952.2			825.9
U.S. Insurance Solutions	821.0			767.6			2,436.8			2,318.6
Corporate	(61.1		)	(52.5		)	(163.3		)	(149.1		)
Total segment operating revenues	2,552.7			2,315.8			7,594.6			6,865.8
Net realized capital losses, net of related revenue adjustments	(68.2		)	(76.7		)	(25.0		)	(253.4		)
Exited group medical insurance business	(0.2		)	0.5			—			4.5
Total revenues per consolidated statements of operations	$	2,484.3		$	2,239.6		$	7,569.6		$	6,616.9
Operating earnings (loss) by segment, net of related income taxes:
Retirement and Investor Services	$	204.3		$	172.9		$	632.9		$	515.2
Principal Global Investors	25.3			23.1			79.6			72.4
Principal International	73.8			50.7			205.1			153.6
U.S. Insurance Solutions	83.3			54.0			175.7			136.9
Corporate	(33.0		)	(31.5		)	(99.4		)	(104.2		)
Total segment operating earnings, net of related income taxes	353.7			269.2			993.9			773.9
Net realized capital losses, as adjusted (1)	(55.2		)	(22.8		)	(47.3		)	(126.8		)
Other after-tax adjustments (2)	(57.8		)	(0.7		)	(105.9		)	(0.8		)
Net income available to common stockholders per consolidated statements of operations	$	240.7		$	245.7		$	840.7		$	646.3

(1) Net realized capital gains (losses), as adjusted, is derived as follows:

	For the three months ended						For the nine months ended
	September 30,						September 30,
	2014			2013			2014			2013
	(in millions)
Net realized capital gains (losses):
Net realized capital gains (losses)	$	(46.4	)	$	(50.9	)	$	41.0		$	(181.9	)
Certain derivative and hedging-related adjustments	(21.9		)	(25.6		)	(66.4		)	(70.7		)
Recognition of front-end fee (revenue) expense	0.1			(0.2		)	0.4			(0.8		)
Net realized capital losses, net of related revenue adjustments	(68.2		)	(76.7		)	(25.0		)	(253.4		)
Amortization of deferred acquisition costs and other actuarial balances	(3.6		)	26.7			(26.8		)	44.8
Capital gains distributed	(8.8		)	(0.2		)	(18.1		)	(11.1		)
Certain market value adjustments of embedded derivatives	5.7			18.7			6.0			18.4
Noncontrolling interest capital gains	(0.1		)	(0.2		)	(0.2		)	(0.2		)
Income tax effect	19.8			8.9			16.8			74.7
Net realized capital losses, as adjusted	$	(55.2	)	$	(22.8	)	$	(47.3	)	$	(126.8	)

(2) For the three months ended September 30, 2014, other after-tax adjustments included the negative effect of an increase in net deferred tax liabilities resulting from third quarter 2014 enactment of tax legislation in Chile ($58.1 million) and the positive effect of gains associated with our exited group medical insurance business that does not qualify for discontinued operations accounting treatment under U.S. GAAP ($0.3 million).

For the three months ended September 30, 2013, other after-tax adjustments included the negative effect of losses associated with our exited group medical insurance business that does not qualify for discontinued operations accounting treatment under U.S. GAAP.

For the nine months ended September 30, 2014, other after-tax adjustments included the negative effect of: (a) an increase in net deferred tax liabilities resulting from third quarter 2014 enactment of tax legislation in Chile ($58.1 million); (b) the impact of a court ruling on some uncertain tax positions ($47.5 million) and (c) losses associated with our exited group medical insurance business that does not qualify for discontinued operations accounting treatment under U.S. GAAP ($0.3 million).

For the nine months ended September 30, 2013, other after-tax adjustments included the negative effect of losses associated with our exited group medical insurance business that does not qualify for discontinued operations accounting treatment under U.S. GAAP.

Operating Revenue for Products and Services by Segment (Table)

	For the three months ended						For the nine months ended
	September 30,						September 30,
	2014			2013			2014			2013
	(in millions)
Retirement and Investor Services:
Full service accumulation	$	392.1		$	369.9		$	1,170.0		$	1,087.7
Principal Funds	219.7			194.8			638.2			565.9
Individual annuities	335.6			334.5			1,082.9			881.8
Bank and trust services	21.9			24.4			63.7			74.9
Eliminations	(38.8		)	(38.3		)	(116.3		)	(109.1		)
Total Accumulation	930.5			885.3			2,838.5			2,501.2
Investment only	73.4			83.1			234.5			260.6
Full service payout	320.8			168.1			778.0			625.8
Total Guaranteed	394.2			251.2			1,012.5			886.4
Total Retirement and Investor Services	1,324.7			1,136.5			3,851.0			3,387.6
Principal Global Investors (1)	173.6			160.9			517.9			482.8
Principal International	294.5			303.3			952.2			825.9
U.S. Insurance Solutions:
Individual life insurance	382.7			362.7			1,148.5			1,110.2
Specialty benefits insurance	438.3			405.0			1,288.4			1,208.6
Eliminations	—			(0.1		)	(0.1		)	(0.2		)
Total U.S. Insurance Solutions	821.0			767.6			2,436.8			2,318.6
Corporate	(61.1		)	(52.5		)	(163.3		)	(149.1		)
Total operating revenues	$	2,552.7		$	2,315.8		$	7,594.6		$	6,865.8
Total operating revenues	$	2,552.7		$	2,315.8		$	7,594.6		$	6,865.8
Net realized capital losses (except periodic settlements and accruals on non-hedge derivatives), including recognition of front-end fee revenues and certain market value adjustments to fee revenues	(68.2		)	(76.7		)	(25.0		)	(253.4		)
Exited group medical insurance business	(0.2		)	0.5			—			4.5
Total revenues per consolidated statements of operations	$	2,484.3		$	2,239.6		$	7,569.6		$	6,616.9

(1) Reflects inter-segment revenues of $71.0 million and $61.1 million for the three months ended September 30, 2014 and 2013, respectively, and $214.4 million and $179.9 million for the nine months ended September 30, 2014 and 2013, respectively.