Nature of Operations and Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2013

Nature of Operations and Significant Accounting Policies

Effects of Deferred Acquisition Cost Accounting Change on Prior Period Consolidated Statements of Financial Position (Table)

Consolidated Statements of Financial Position

	December 31, 2012						December 31, 2011
	As originally						As originally
	reported			As adjusted			reported			As adjusted
	(in millions)
Assets
Fixed maturities, available-for-sale	$	50,939.3		$	50,939.3		$	49,006.7		$	49,006.7
Fixed maturities, trading	626.7			626.7			971.7			971.7
Equity securities, available-for-sale	136.5			136.5			77.1			77.1
Equity securities, trading	252.8			252.8			404.8			404.8
Mortgage loans	11,519.7			11,519.7			10,727.2			10,727.2
Real estate	1,180.3			1,180.3			1,092.9			1,092.9
Policy loans	864.9			864.9			885.1			885.1
Other investments	3,291.1			3,291.1			2,985.8			2,985.8
Total investments	68,811.3			68,811.3			66,151.3			66,151.3
Cash and cash equivalents	4,177.2			4,177.2			2,833.9			2,833.9
Accrued investment income	584.4			584.4			615.2			615.2
Premiums due and other receivables	1,084.4			1,084.4			1,196.5			1,196.5
Deferred acquisition costs	2,673.8			2,590.0			2,428.0			2,358.1
Property and equipment	464.2			464.2			457.2			457.2
Goodwill	543.4			543.4			482.3			482.3
Other intangibles	927.2			914.7			890.6			870.3
Separate account assets	81,653.8			81,653.8			71,364.4			71,364.4
Other assets	1,006.8			1,006.8			942.3			942.3
Total assets	$	161,926.5		$	161,830.2		$	147,361.7		$	147,271.5
Liabilities
Contractholder funds	$	37,786.5		$	37,786.5		$	37,676.4		$	37,676.4
Future policy benefits and claims	22,436.2			22,436.2			20,210.4			20,210.4
Other policyholder funds	716.4			716.4			548.6			548.6
Short-term debt	40.8			40.8			105.2			105.2
Long-term debt	2,671.3			2,671.3			1,564.8			1,564.8
Income taxes currently payable	15.3			15.3			3.1			3.1
Deferred income taxes	626.5			600.0			208.7			184.0
Separate account liabilities	81,653.8			81,653.8			71,364.4			71,364.4
Other liabilities	6,146.1			6,146.1			6,286.2			6,286.2
Total liabilities	152,092.9			152,066.4			137,967.8			137,943.1
Redeemable noncontrolling interest	60.4			60.4			22.2			22.2
Stockholders’ equity
Series A preferred stock, par value	—			—			—			—
Series B preferred stock, par value	0.1			0.1			0.1			0.1
Common stock, par value	4.5			4.5			4.5			4.5
Additional paid-in capital	9,730.9			9,730.9			9,634.7			9,634.7
Retained earnings	4,940.2			4,862.0			4,402.3			4,323.4
Accumulated other comprehensive income	631.9			640.3			258.0			271.4
Treasury stock, at cost	(5,554.4		)	(5,554.4		)	(5,281.7		)	(5,281.7		)
Total stockholders’ equity attributable to Principal Financial Group, Inc.	9,753.2			9,683.4			9,017.9			8,952.4
Noncontrolling interest	20.0			20.0			353.8			353.8
Total stockholders’ equity	9,773.2			9,703.4			9,371.7			9,306.2
Total liabilities and stockholders’ equity	$	161,926.5		$	161,830.2		$	147,361.7		$	147,271.5

Effects of Deferred Acquisition Cost Accounting Change on Prior Period Consolidated Statements of Operations (Table)

Consolidated Statements of Operations

	For the year ended						For the year ended
	December 31, 2012						December 31, 2011
	As originally						As originally
	reported			As adjusted			reported			As adjusted
	(in millions, except per share data)
Revenues
Premiums and other considerations	$	3,219.4		$	3,219.4		$	2,891.0		$	2,891.0
Fees and other revenues	2,626.7			2,626.7			2,526.7			2,526.7
Net investment income	3,254.9			3,254.9			3,375.3			3,375.3
Net realized capital gains, excluding impairment losses on available-for-sale securities	232.7			232.7			75.0			75.0
Total other-than-temporary impairment losses on available-for- sale securities	(135.9		)	(135.9		)	(147.6		)	(147.6		)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to (from) other comprehensive income	17.3			17.3			(49.7		)	(49.7		)
Net impairment losses on available-for-sale securities	(118.6		)	(118.6		)	(197.3		)	(197.3		)
Net realized capital gains (losses)	114.1			114.1			(122.3		)	(122.3		)
Total revenues	9,215.1			9,215.1			8,670.7			8,670.7
Expenses
Benefits, claims and settlement expenses	5,123.9			5,123.9			4,616.6			4,616.6
Dividends to policyholders	197.7			197.7			210.2			210.2
Operating expenses	2,934.1			2,933.5			2,950.8			2,971.1
Total expenses	8,255.7			8,255.1			7,777.6			7,797.9
Income before income taxes	959.4			960.0			893.1			872.8
Income taxes	134.7			134.6			204.2			198.3
Net income	824.7			825.4			688.9			674.5
Net income attributable to noncontrolling interest	18.8			18.8			36.2			36.2
Net income attributable to Principal Financial Group, Inc.	805.9			806.6			652.7			638.3
Preferred stock dividends	33.0			33.0			33.0			33.0
Net income available to common stockholders	$	772.9		$	773.6		$	619.7		$	605.3
Earnings per common share
Basic earnings per common share	$	2.60		$	2.60		$	1.97		$	1.92
Diluted earnings per common share	$	2.57		$	2.58		$	1.95		$	1.91

	For the six months ended						For the nine months ended
	June 30, 2012						September 30, 2012
	As originally						As originally
	reported			As adjusted			reported			As adjusted
	(in millions, except per share data)
Revenues
Premiums and other considerations	$	1,361.1		$	1,361.1		$	2,519.3		$	2,519.3
Fees and other revenues	1,234.1			1,234.1			1,909.1			1,909.1
Net investment income	1,625.8			1,625.8			2,409.6			2,409.6
Net realized capital gains, excluding impairment losses on available-for-sale securities	54.3			54.3			176.4			176.4
Total other-than-temporary impairment losses on available-for- sale securities	(82.8		)	(82.8		)	(126.4		)	(126.4		)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to other comprehensive income	22.0			22.0			31.2			31.2
Net impairment losses on available-for-sale securities	(60.8		)	(60.8		)	(95.2		)	(95.2		)
Net realized capital gains (losses)	(6.5		)	(6.5		)	81.2			81.2
Total revenues	4,214.5			4,214.5			6,919.2			6,919.2
Expenses
Benefits, claims and settlement expenses	2,322.5			2,322.5			3,969.5			3,969.5
Dividends to policyholders	99.8			99.8			149.5			149.5
Operating expenses	1,280.1			1,284.7			2,106.7			2,101.1
Total expenses	3,702.4			3,707.0			6,225.7			6,220.1
Income before income taxes	512.1			507.5			693.5			699.1
Income taxes	109.1			107.6			99.2			100.4
Net income	403.0			399.9			594.3			598.7
Net income attributable to noncontrolling interest	11.9			11.9			15.3			15.3
Net income attributable to Principal Financial Group, Inc.	391.1			388.0			579.0			583.4
Preferred stock dividends	16.5			16.5			24.7			24.7
Net income available to common stockholders	$	374.6		$	371.5		$	554.3		$	558.7
Earnings per common share
Basic earnings per common share	$	1.25		$	1.24		$	1.86		$	1.87
Diluted earnings per common share	$	1.24		$	1.22		$	1.84		$	1.85

	For the three months ended						For the three months ended						For the three months ended						For the three months ended
	March 31, 2012						June 30, 2012						September 30, 2012						December 31, 2012
	As originally						As originally						As originally						As originally
	reported			As adjusted			reported			As adjusted			reported			As adjusted			reported			As adjusted
	(in millions, except per share data)
Revenues
Premiums and other considerations	$	679.8		$	679.8		$	681.3		$	681.3		$	1,158.2		$	1,158.2		$	700.1		$	700.1
Fees and other revenues	598.0			598.0			636.1			636.1			675.0			675.0			717.6			717.6
Net investment income	824.8			824.8			801.0			801.0			783.8			783.8			845.3			845.3
Net realized capital gains, excluding impairment losses on available-for-sale securities	22.1			22.1			32.2			32.2			122.1			122.1			56.3			56.3
Total other-than-temporary impairment losses on available-for-sale securities	(33.7		)	(33.7		)	(49.1		)	(49.1		)	(43.6		)	(43.6		)	(9.5		)	(9.5		)
Other-than-temporary impairment losses on fixed maturities, available-for- sale reclassified to (from) other comprehensive income	4.9			4.9			17.1			17.1			9.2			9.2			(13.9		)	(13.9		)
Net impairment losses on available-for-sale securities	(28.8		)	(28.8		)	(32.0		)	(32.0		)	(34.4		)	(34.4		)	(23.4		)	(23.4		)
Net realized capital gains (losses)	(6.7		)	(6.7		)	0.2			0.2			87.7			87.7			32.9			32.9
Total revenues	2,095.9			2,095.9			2,118.6			2,118.6			2,704.7			2,704.7			2,295.9			2,295.9
Expenses
Benefits, claims and settlement expenses	1,212.5			1,212.5			1,110.0			1,110.0			1,647.0			1,647.0			1,154.4			1,154.4
Dividends to policyholders	50.3			50.3			49.5			49.5			49.7			49.7			48.2			48.2
Operating expenses	556.0			555.1			724.1			729.6			826.6			816.4			827.4			832.4
Total expenses	1,818.8			1,817.9			1,883.6			1,889.1			2,523.3			2,513.1			2,030.0			2,035.0
Income before income taxes	277.1			278.0			235.0			229.5			181.4			191.6			265.9			260.9
Income taxes (benefits)	58.2			56.7			50.9			50.9			(9.9		)	(7.2		)	35.5			34.2
Net income	218.9			221.3			184.1			178.6			191.3			198.8			230.4			226.7
Net income attributable to noncontrolling interest	9.2			9.2			2.7			2.7			3.4			3.4			3.5			3.5
Net income attributable to Principal Financial Group, Inc.	209.7			212.1			181.4			175.9			187.9			195.4			226.9			223.2
Preferred stock dividends	8.2			8.2			8.3			8.3			8.2			8.2			8.3			8.3
Net income available to common stockholders	$	201.5		$	203.9		$	173.1		$	167.6		$	179.7		$	187.2		$	218.6		$	214.9
Earnings per common share
Basic earnings per common share	$	0.67		$	0.68		$	0.58		$	0.56		$	0.61		$	0.64		$	0.74		$	0.72
Diluted earnings per common share	$	0.66		$	0.68		$	0.58		$	0.56		$	0.60		$	0.63		$	0.74		$	0.72

Effects of Deferred Acquisition Cost Accounting Change on Prior Period Consolidated Statements of Comprehensive Income (Table)

Consolidated Statements of Comprehensive Income

	For the year ended						For the year ended
	December 31, 2012						December 31, 2011
	As originally						As originally
	reported			As adjusted			reported			As adjusted
	(in millions)
Net income	$	824.7		$	825.4		$	688.9		$	674.5
Other comprehensive income (loss), net:
Net unrealized gains on available-for-sale securities	557.6			557.6			208.6			208.6
Noncredit component of impairment losses on fixed maturities, available-for-sale	(6.7		)	(6.7		)	31.0			31.0
Net unrealized gains (losses) on derivative instruments	(43.6		)	(43.6		)	23.6			23.6
Foreign currency translation adjustment	(4.8		)	(9.8		)	(139.5		)	(130.9		)
Net unrecognized postretirement benefit obligation	(127.4		)	(127.4		)	(172.9		)	(172.9		)
Other comprehensive income (loss)	375.1			370.1			(49.2		)	(40.6		)
Comprehensive income	1,199.8			1,195.5			639.7			633.9
Comprehensive income attributable to noncontrolling interest	20.0			20.0			35.7			35.7
Comprehensive income attributable to Principal Financial Group, Inc.	$	1,179.8		$	1,175.5		$	604.0		$	598.2

	For the six months ended						For the nine months ended
	June 30, 2012						September 30, 2012
	As originally						As originally
	reported			As adjusted			reported			As adjusted
	(in millions)
Net income	$	403.0		$	399.9		$	594.3		$	598.7
Other comprehensive income, net:
Net unrealized gains on available-for-sale securities	262.0			262.0			558.0			558.0
Noncredit component of impairment losses on fixed maturities, available-for-sale	(10.8		)	(10.8		)	(14.8		)	(14.8		)
Net unrealized gains on derivative instruments	45.4			45.4			27.2			27.2
Foreign currency translation adjustment	(21.4		)	(23.9		)	27.2			21.5
Net unrecognized postretirement benefit obligation	17.5			17.5			26.2			26.2
Other comprehensive income	292.7			290.2			623.8			618.1
Comprehensive income	695.7			690.1			1,218.1			1,216.8
Comprehensive income attributable to noncontrolling interest	12.1			12.1			16.3			16.3
Comprehensive income attributable to Principal Financial Group, Inc.	$	683.6		$	678.0		$	1,201.8		$	1,200.5

	For the three months ended						For the three months ended						For the three months ended						For the three months ended
	March 31, 2012						June 30, 2012						September 30, 2012						December 31, 2012
	As originally						As originally						As originally						As originally
	reported			As adjusted			reported			As adjusted			reported			As adjusted			reported			As adjusted
	(in millions)
Net income	$	218.9		$	221.3		$	184.1		$	178.6		$	191.3		$	198.8		$	230.4		$	226.7
Other comprehensive income (loss) net:
Net unrealized gains (losses) on available-for-sale securities	161.3			161.3			100.7			100.7			296.0			296.0			(0.4		)	(0.4		)
Noncredit component of impairment losses on fixed maturities, available-for-sale	(0.9		)	(0.9		)	(9.9		)	(9.9		)	(4.0		)	(4.0		)	8.1			8.1
Net unrealized gains (losses) on derivative instruments	(3.5		)	(3.5		)	48.9			48.9			(18.2		)	(18.2		)	(70.8		)	(70.8		)
Foreign currency translation adjustment	65.3			59.6			(86.7		)	(83.5		)	48.6			45.4			(32.0		)	(31.3		)
Net unrecognized postretirement benefit obligation	8.7			8.7			8.8			8.8			8.7			8.7			(153.6		)	(153.6		)
Other comprehensive income (loss)	230.9			225.2			61.8			65.0			331.1			327.9			(248.7		)	(248.0		)
Comprehensive income (loss)	449.8			446.5			245.9			243.6			522.4			526.7			(18.3		)	(21.3		)
Comprehensive income attributable to noncontrolling interest	10.0			10.0			2.1			2.1			4.2			4.2			3.7			3.7
Comprehensive income (loss) attributable to Principal Financial Group, Inc.	$	439.8		$	436.5		$	243.8		$	241.5		$	518.2		$	522.5		$	(22.0	)	$	(25.0	)