Schedule II — Condensed Financial Information of Registrant (Parent Only)
Statements of Financial Position

	December 31,
	2015			2014
	(in millions)
Assets
Cash and cash equivalents	$	578.7		$	412.4
Other investments		9.7			9.5
Income taxes receivable		21.3			21.8
Deferred income taxes		427.4			405.5
Amounts receivable from subsidiaries		8.9			5.4
Other assets		24.5			18.0
Investment in subsidiaries		12,223.4			12,446.5

Total assets	$	13,293.9		$	13,319.1


Liabilities
Long-term debt	$	3,247.9		$	2,448.9
Accrued investment payable		25.8			21.8
Pension liability		708.6			664.4

Total liabilities		3,982.3			3,135.1
Stockholders' equity
Series A preferred stock, par value $.01 per share with liquidation preference of $100 per share — 0.0 million and 3.0 million shares authorized, issued and outstanding in 2015 and 2014		—			—
Series B preferred stock, par value $.01 per share with liquidation preference of $25 per share — 0.0 million and 10.0 million shares authorized, issued and outstanding in 2015 and 2014		—			0.1
Common stock, par value $.01 per share — 2,500 million shares authorized, 466.2 million and 462.7 million shares issued, and 291.4 million and 293.9 million shares outstanding in 2015 and 2014		4.7			4.6
Additional paid-in capital		9,544.8			9,945.5
Retained earnings		6,875.9			6,114.1
Accumulated other comprehensive income (loss)		(882.5	)		50.4
Treasury stock, at cost (174.8 million and 168.8 million shares in 2015 and 2014)		(6,231.3	)		(5,930.7	)

Total stockholders' equity attributable to Principal Financial Group, Inc.		9,311.6			10,184.0

Total liabilities and stockholders' equity	$	13,293.9		$	13,319.1

See accompanying notes.

Statements of Operations

	For the year ended December 31,
	2015			2014			2013
	(in millions)
Revenues
Net investment income	$	1.6		$	0.5		$	0.4
Net realized capital gains		—			—			6.3

Total revenues		1.6			0.5			6.7
Expenses
Other operating costs and expenses		175.4			144.3			140.5

Total expenses		175.4			144.3			140.5

Losses before income taxes		(173.8	)		(143.8	)		(133.8	)
Income tax benefits		(71.2	)		(86.3	)		(54.0	)
Equity in the net income of subsidiaries		1,336.6			1,201.6			992.5

Net income attributable to Principal Financial Group, Inc.		1,234.0			1,144.1			912.7
Less:
Preferred stock dividends		16.5			33.0			33.0
Excess of redemption value over carrying value of preferred shares redeemed		8.2			—			—

Net income available to common stockholders	$	1,209.3		$	1,111.1		$	879.7

See accompanying notes.

Statements of Cash Flows

	For the year ended December 31,
	2015			2014			2013
	(in millions)
Operating activities
Net income	$	1,234.0		$	1,144.1		$	912.7
Adjustments to reconcile net income to net cash used in operating activities:
Equity in the net income of subsidiaries		(1,336.6	)		(1,201.6	)		(992.5	)
Net realized capital gains		—			—			(6.3	)
Net cash flows for trading securities		—			—			10.4
Current and deferred income taxes (benefits)		(20.9	)		(225.9	)		12.6
Stock-based compensation		3.9			3.1			2.2
Other		34.5			198.7			18.1

Net cash used in operating activities		(85.1	)		(81.6	)		(42.8	)
Investing activities
Net change in other investments		5.4			(0.7	)		(3.1	)
Dividends and returns of capital received from unconsolidated entity		685.5			917.7			319.5

Net cash provided by investing activities		690.9			917.0			316.4
Financing activities
Issuance of common stock		76.1			77.5			125.8
Acquisition of treasury stock		(300.6	)		(222.7	)		(153.6	)
Excess tax benefits from share-based payment arrangements		0.7			0.3			—
Dividends to common stockholders		(441.0	)		(376.6	)		(288.4	)
Dividends to preferred stockholders		(16.5	)		(33.0	)		(33.0	)
Preferred stock redemption		(550.0	)		—			—
Issuance of long-term debt		791.8			—			—

Net cash used in financing activities		(439.5	)		(554.5	)		(349.2	)

Net increase (decrease) in cash and cash equivalents		166.3			280.9			(75.6	)
Cash and cash equivalents at beginning of year		412.4			131.5			207.1

Cash and cash equivalents at end of year	$	578.7		$	412.4		$	131.5

See accompanying notes.

(1) Basis of Presentation

The accompanying condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto of Principal Financial Group, Inc.

In the parent company only financial statements, our investments in subsidiaries are stated as cost plus equity in undistributed earnings of subsidiaries.

During November 2014, the parent company became the sponsor of the defined benefit pension plans discussed in Item 8. "Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements, Note 11, Employee and Agent Benefits." Prior to November 2014, Principal Life Insurance Company, an indirect wholly owned subsidiary of the parent company, was the sponsor of these plans.

(2) Dividends and Returns of Capital Received from (Contributions to) Unconsolidated Entity

The parent company received cash dividends and returns of capital totaling $685.5 million, $917.7 million and $319.5 million from subsidiaries in 2015, 2014, and 2013, respectively.

(3) Supplemental Disclosures of Non-Cash Investing Activity

The parent company's assumption of the obligations associated with the defined benefit pension plans previously sponsored by Principal Life Insurance Company resulted in a non-cash increase in the parent company's investment in subsidiary of $56.3 million in 2014.