Segment Information

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


	For the year ended December 31,
	2023		2022		2021

	(in millions)
Operating revenues by segment:
Retirement and Income Solutions (1)	$	7,250.2	$	5,899.2	$	6,429.4
Principal Asset Management:
Principal Global Investors		1,611.2		1,715.5		1,828.0
Principal International		1,192.8		1,489.4		1,391.1
Eliminations		(21.7)		(23.6)		(26.1)
Total Principal Asset Management (2)		2,782.3		3,181.3		3,193.0
Benefits and Protection:
Specialty Benefits		3,229.4		2,984.6		2,709.6
Life Insurance		1,323.7		1,318.8		2,083.0
Eliminations		(1.8)		(0.6)		(0.2)
Total Benefits and Protection		4,551.3		4,302.8		4,792.4
Corporate		76.4		17.1		27.9
Total segment operating revenues		14,660.2		13,400.4		14,442.7
Net realized capital gains (losses), net of related revenue adjustments		57.9		(189.6)		64.8
Revenues from exited business (3)		(927.5)		4,414.8		—
Adjustments related to equity method investments		(78.9)		(54.5)		(47.2)
Market risk benefit derivative settlements		(45.9)		(35.0)		(32.5)
Total revenues per consolidated statements of operations	$	13,665.8	$	17,536.1	$	14,427.8

Pre-tax operating earnings (losses) by segment:
Retirement and Income Solutions	$	1,051.4	$	959.1	$	972.6
Principal Asset Management		817.7		902.7		1,036.1
Benefits and Protection		537.6		570.3		366.9
Corporate		(396.8)		(469.4)		(368.0)
Total segment pre-tax operating earnings		2,009.9		1,962.7		2,007.6
Pre-tax net realized capital losses, as adjusted (4)		(88.6)		(251.4)		(83.0)
Pre-tax income (loss) from exited business (5)		(1,129.8)		4,260.1		—
Adjustments related to equity method investments and noncontrolling interest		(52.7)		15.6		(13.7)
Income before income taxes per consolidated statements of operations	$	738.8	$	5,987.0	$	1,910.9

(1)	Reflects inter-segment revenues of $398.3 million, $364.4 million and $413.1 million for the years ended December 31, 2023, 2022 and 2021, respectively.

(2)	Reflects inter-segment revenues of $297.8 million, $306.0 million and $287.4 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Pre-tax net realized capital gains (losses), as adjusted from exited business (Table)


	For the year ended December 31,
	2023		2022		2021

	(in millions)
Net realized capital gains (losses)	$	(72.2)	$	(182.1)	$	115.4
Derivative and hedging-related revenue adjustments		23.3		(91.3)		(127.8)
Market value adjustments to fee revenues		1.3		0.7		(0.6)
Certain variable annuity fees		73.3		75.9		80.5
Adjustments related to equity method investments		8.8		(15.0)		(24.0)
Adjustments related to sponsored investment funds		23.4		22.2		21.3
Net realized capital gains (losses), net of related revenue adjustments		57.9		(189.6)		64.8
Amortization of deferred acquisition costs and other actuarial balances		(0.2)		(0.1)		9.7
Capital (gains) losses distributed		(78.5)		136.4		(106.7)
Derivative and hedging-related expense adjustments		1.8		—		—
Market value adjustments of market risk benefits		(71.3)		(157.2)		(36.9)
Market value adjustments of embedded derivatives		1.7		(40.9)		(13.9)
Pre-tax net realized capital losses, as adjusted (a)	$	(88.6)	$	(251.4)	$	(83.0)

(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,
	2023		2022		2021

	(in millions)
Income tax expense (benefit) by segment:
Retirement and Income Solutions	$	130.9	$	90.6	$	94.7
Principal Asset Management		220.7		213.3		272.2
Benefits and Protection		97.7		109.1		70.5
Corporate		(42.2)		(69.1)		(70.7)
Total segment income taxes from operating earnings		407.1		343.9		366.7
Tax benefit related to net realized capital losses, as adjusted		(22.0)		(56.6)		(35.7)
Tax expense (benefit) related to other after-tax adjustments (1)		(238.1)		956.4		—
Certain adjustments related to equity method investments and noncontrolling interest		(78.3)		(54.2)		(47.1)
Total income taxes per consolidated statements of operations	$	68.7	$	1,189.5	$	283.9

(1)	Income tax expense (benefit) related to exited business is derived as follows:


	For the year ended December 31,
	2023		2022		2021

	(in millions)
Income tax expense (benefit) related to exited business:
Change in fair value of funds withheld embedded derivative	$	(228.0)	$	767.1	$	—
Net realized capital gains on funds withheld assets		34.6		157.4		—
Strategic review costs and impacts (a)		(0.9)		70.3		—
Amortization of reinsurance loss		(14.4)		(12.0)		—
Other impacts of reinsured business		(29.4)		(26.4)		—
Total income tax expense (benefit) related to exited business	$	(238.1)	$	956.4	$	—

(a)

Includes Global Intangible Low-Taxed Income allocated to exited business.

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


	For the year ended December 31,
	2023		2022		2021

	(in millions)
Depreciation and amortization expense by segment:
Retirement and Income Solutions	$	85.3	$	86.2	$	81.7
Principal Asset Management		76.0		74.6		78.4
Benefits and Protection		23.9		23.7		24.2
Corporate		17.7		18.4		23.7
Total segment depreciation and amortization expense included in pre-tax operating earnings		202.9		202.9		208.0
Depreciation and amortization expense related to exited business		—		27.1		—
Total depreciation and amortization expense included in our consolidated statements of operations	$	202.9	$	230.0	$	208.0