Segment Information (Tables)

12 Months Ended

Dec. 31, 2020

Segment Information

Reconciliation of Assets from Segment to Consolidated (Table)

	December 31, 2020		December 31, 2019
	(in millions)
Assets:
Retirement and Income Solutions	$	207,288.4	$	192,698.1
Principal Global Investors		2,294.3		2,363.3
Principal International		51,707.6		48,857.6
U.S. Insurance Solutions		31,438.9		28,669.6
Corporate		3,898.5		3,499.2
Total consolidated assets	$	296,627.7	$	276,087.8

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

	For the year ended December 31,
	2020		2019		2018
	(in millions)
Operating revenues by segment:
Retirement and Income Solutions:
Retirement and Income Solutions – Fee	$	2,149.8	$	2,003.0	$	1,783.7
Retirement and Income Solutions – Spread		5,353.7		6,951.4		5,493.3
Total Retirement and Income Solutions (1)		7,503.5		8,954.4		7,277.0
Principal Global Investors (2)		1,539.1		1,505.8		1,736.3
Principal International		1,096.8		1,523.2		1,372.9
U.S. Insurance Solutions:
Specialty Benefits insurance		2,525.4		2,493.6		2,326.4
Individual Life insurance		1,955.0		1,955.6		1,763.6
Eliminations		(0.2)		(0.2)		(0.2)
Total U.S. Insurance Solutions		4,480.2		4,449.0		4,089.8
Corporate		(39.7)		(39.3)		(51.2)
Total segment operating revenues		14,579.9		16,393.1		14,424.8
Net realized capital gains (losses), net of related revenue adjustments		195.3		(98.5)		(132.3)
Adjustments related to equity method investments		(33.5)		(72.5)		(55.3)
Total revenues per consolidated statements of operations	$	14,741.7	$	16,222.1	$	14,237.2
Pre-tax operating earnings (losses) by segment:
Retirement and Income Solutions	$	966.9	$	874.0	$	922.2
Principal Global Investors		512.9		483.3		562.1
Principal International		243.6		390.7		272.6
U.S. Insurance Solutions		239.9		521.6		467.0
Corporate		(326.4)		(380.3)		(269.4)
Total segment pre-tax operating earnings		1,636.9		1,889.3		1,954.5
Pre-tax net realized capital gains (losses), as adjusted (3)		63.6		(140.9)		(126.4)
Adjustments related to equity method investments and noncontrolling interest		(7.0)		(55.1)		(43.7)
Income before income taxes per consolidated statements of operations	$	1,693.5	$	1,693.3	$	1,784.4

(1) Reflects inter-segment revenues of $342.6 million, $357.8 million and $393.6 million for the years ended December 31, 2020, 2019 and 2018, respectively.

(2) Reflects inter-segment revenues of $273.8 million, $264.9 million and $262.8 million for the years ended December 31, 2020, 2019 and 2018, respectively.

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

	For the year ended December 31,
	2020		2019		2018
	(in millions)
Net realized capital gains (losses)	$	302.6	$	(52.8)	$	(75.4)
Derivative and hedging-related revenue adjustments		(132.9)		(80.4)		(64.9)
Market value adjustments to fee revenues		(1.6)		—		0.1
Adjustments related to equity method investments		(1.5)		2.6		(5.4)
Adjustments related to sponsored investment funds		17.3		23.6		12.9
Recognition of front-end fee revenue		11.4		8.5		0.4
Net realized capital gains (losses), net of related revenue adjustments		195.3		(98.5)		(132.3)
Amortization of deferred acquisition costs and other actuarial balances		(26.8)		(40.8)		(27.0)
Capital (gains) losses distributed		(49.9)		(68.2)		14.4
Market value adjustments of embedded derivatives		(55.0)		66.6		18.5
Pre-tax net realized capital gains (losses), as adjusted (a)	$	63.6	$	(140.9)	$	(126.4)

(a) As adjusted before noncontrolling interest capital gains (losses).

Reconciliation of Other Significant Reconciling Items from Segments to Consolidated (Table)

	For the year ended December 31,
	2020		2019		2018
	(in millions)
Income tax expense (benefit) by segment:
Retirement and Income Solutions	$	106.6	$	71.8	$	85.6
Principal Global Investors		141.9		121.8		149.1
Principal International		62.0		106.8		73.3
U.S. Insurance Solutions		47.9		101.8		85.7
Corporate		(87.9)		(82.0)		(36.7)
Total segment income taxes from operating earnings		270.5		320.2		357.0
Tax expense (benefit) related to net realized capital losses, as adjusted		28.2		1.3		(71.4)
Certain adjustments related to equity method investments and noncontrolling interest		(33.7)		(72.3)		(54.9)
Total income taxes per consolidated statements of operations	$	265.0	$	249.2	$	230.7

Reconciliation of Depreciation and Amortization Expense from Segments to Consolidated (Table)

	For the year ended December 31,
	2020		2019		2018
	(in millions)
Depreciation and amortization expense by segment:
Retirement and Income Solutions	$	69.1	$	48.2	$	32.5
Principal Global Investors		21.6		18.9		21.9
Principal International		56.0		58.6		59.6
U.S. Insurance Solutions		25.1		25.0		26.2
Corporate		14.8		16.1		10.8
Total depreciation and amortization expense included in our consolidated statements of operations	$	186.6	$	166.8	$	151.0