Segment Information (Tables)

3 Months Ended

Mar. 31, 2016

Reconciliation of Assets from Segment to Consolidated (Table)

	March 31, 2016		December 31, 2015
	(in millions)
Assets:
Retirement and Income Solutions	$	144,101.7	$	139,678.5
Principal Global Investors	1,792.1		1,880.4
Principal International	44,523.5		50,588.6
U.S. Insurance Solutions	22,596.4		22,156.9
Corporate	4,556.3		4,355.9

Total consolidated assets	$	217,570.0	$	218,660.3

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

	For the three months ended March 31,
	2016		2015
	(in millions)
Operating revenues by segment:
Retirement and Income Solutions:
Retirement and Income Solutions – Fee	$	413.3	$	437.7
Retirement and Income Solutions – Spread	1,050.7		686.8

Total Retirement and Income Solutions (1)	1,464.0		1,124.5
Principal Global Investors (2)	309.5		328.9
Principal International	286.6		250.8
U.S. Insurance Solutions:
Specialty benefits insurance	482.9		466.3
Individual life insurance	408.0		395.4

Total U.S. Insurance Solutions	890.9		861.7
Corporate	(13.1)		(6.7)

Total segment operating revenues	2,937.9		2,559.2
Net realized capital gains, net of related revenue adjustments	113.6		45.6
Certain adjustments related to equity method investments	(14.9)		(14.6)
Other income on a tax indemnification	—		66.9
Exited group medical insurance business	—		0.2

Total revenues per consolidated statements of operations	$	3,036.6	$	2,657.3


Pre-tax operating earnings (losses) by segment:
Retirement and Income Solutions	$	181.4	$	202.9
Principal Global Investors	79.7		92.6
Principal International	68.0		80.8
U.S. Insurance Solutions	80.5		81.9
Corporate	(53.3)		(37.3)

Total segment pre-tax operating earnings	356.3		420.9
Pre-tax net realized capital gains, as adjusted (3)	96.8		33.5
Pre-tax other adjustments (4)	—		16.6
Certain adjustments related to equity method investments and noncontrolling interest	(13.3)		(12.9)

Income before income taxes per consolidated statements of operations	$	439.8	$	458.1

(1)

Reflects inter-segment revenues of $89.2 million and $105.2 million for the three months ended March 31, 2016 and 2015, respectively.

(2)

Reflects inter-segment revenues of $54.3 million and $60.4 million for the three months ended March 31, 2016 and 2015, respectively.

(3)

Pre-tax net realized capital gains (losses), as adjusted, is derived as follows:

	For the three months ended March 31,
	2016		2015
	(in millions)
Net realized capital gains:
Net realized capital gains	$	136.6	$	66.2
Certain derivative and hedging-related adjustments	(24.3)		(19.7)
Certain market value adjustments to fee revenues	(0.7)		(1.1)
Certain adjustments related to equity method investments	0.3		—
Certain adjustments related to sponsored investment funds	1.4		—
Recognition of front-end fee expense	0.3		0.2

Net realized capital gains, net of related revenue adjustments	113.6		45.6
Amortization of deferred acquisition costs and other actuarial balances	(46.3)		(16.0)
Capital losses distributed	27.1		4.8
Certain market value adjustments of embedded derivatives	2.4		(0.9)

Pre-tax net realized capital gains, as adjusted (a)	$	96.8	$	33.5

(a)

As adjusted before noncontrolling interest capital gains (losses) and net realized capital gains (losses) associated with exited group medical insurance business.

(4)

For the three months ended March 31, 2015, pre-tax other adjustments included the positive effect of the impact of a court ruling on some uncertain tax positions ($16.9 million) and the negative effect of losses associated with our exited group medical insurance business that did not qualify for discontinued operations accounting treatment under U.S. GAAP ($0.3 million).