Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2013

Condensed Consolidating Financial Information

Condensed Consolidating Financial Information, Notes Guarantor (Table)

Condensed Consolidating Statements of Financial Position

September 30, 2013

	Principal			Principal Life			Principal Financial					Principal
	Financial			Insurance			Services, Inc. and					Financial
	Group, Inc.			Company			Other Subsidiaries					Group, Inc.
	Parent Only			Only			Combined		Eliminations			Consolidated
	(in millions)
Assets
Fixed maturities, available-for-sale	$	—		$	42,736.2		$	6,567.9	$	(389.2	)	$	48,914.9
Fixed maturities, trading	—			254.9			318.0		—			572.9
Equity securities, available-for-sale	—			103.3			10.7		—			114.0
Equity securities, trading	—			0.3			665.9		—			666.2
Mortgage loans	—			10,857.9			1,334.5		(324.3		)	11,868.1
Real estate	—			8.0			1,270.6		—			1,278.6
Policy loans	—			829.1			30.5		—			859.6
Investment in unconsolidated entities	11,642.3			3,392.1			4,396.6		(18,530.6		)	900.4
Other investments	9.3			2,024.1			1,263.5		(1,203.3		)	2,093.6
Cash and cash equivalents	50.8			651.6			934.8		69.9			1,707.1
Accrued investment income	—			508.8			63.9		(1.5		)	571.2
Premiums due and other receivables	—			1,022.2			1,648.1		(1,509.6		)	1,160.7
Deferred acquisition costs	—			2,790.2			217.4		—			3,007.6
Property and equipment	—			401.5			77.6		—			479.1
Goodwill	—			54.3			1,073.2		—			1,127.5
Other intangibles	—			27.1			1,470.3		—			1,497.4
Separate account assets	—			78,819.5			44,981.0		—			123,800.5
Other assets	66.7			893.1			1,859.7		(1,751.5		)	1,068.0
Total assets	$	11,769.1		$	145,374.2		$	68,184.2	$	(23,640.1	)	$	201,687.4
Liabilities
Contractholder funds	$	—		$	35,435.4		$	1,254.4	$	(287.1	)	$	36,402.7
Future policy benefits and claims	—			17,888.0			4,709.9		(273.7		)	22,324.2
Other policyholder funds	—			703.3			50.8		(0.5		)	753.6
Short-term debt	—			—			175.5		—			175.5
Long-term debt	2,448.7			99.4			369.6		(324.4		)	2,593.3
Income taxes currently payable	—			—			80.8		(72.9		)	7.9
Deferred income taxes	—			(66.2		)	869.3		(168.5		)	634.6
Separate account liabilities	—			78,819.5			44,981.0		—			123,800.5
Other liabilities	42.0			5,138.6			3,716.6		(3,510.0		)	5,387.2
Total liabilities	2,490.7			138,018.0			56,207.9		(4,637.1		)	192,079.5
Redeemable noncontrolling interest	—			—			234.5		—			234.5
Stockholders’ equity
Series A preferred stock	—			—			—		—			—
Series B preferred stock	0.1			—			—		—			0.1
Common stock	4.6			2.5			—		(2.5		)	4.6
Additional paid-in capital	9,749.3			5,505.9			9,160.8		(14,666.7		)	9,749.3
Retained earnings	5,249.9			1,643.8			2,467.0		(4,110.8		)	5,249.9
Accumulated other comprehensive income (loss)	(17.7		)	204.0			14.5		(218.5		)	(17.7		)
Treasury stock, at cost	(5,707.8		)	—			—		—			(5,707.8		)
Total stockholders’ equity attributable to PFG	9,278.4			7,356.2			11,642.3		(18,998.5		)	9,278.4
Noncontrolling interest	—			—			99.5		(4.5		)	95.0
Total stockholders’ equity	9,278.4			7,356.2			11,741.8		(19,003.0		)	9,373.4
Total liabilities and stockholders’ equity	$	11,769.1		$	145,374.2		$	68,184.2	$	(23,640.1	)	$	201,687.4

Condensed Consolidating Statements of Financial Position

December 31, 2012

	Principal			Principal Life		Principal Financial					Principal
	Financial			Insurance		Services, Inc. and					Financial
	Group, Inc.			Company		Other Subsidiaries					Group, Inc.
	Parent Only			Only		Combined		Eliminations			Consolidated
	(in millions)
Assets
Fixed maturities, available-for-sale	$	—		$	44,614.6	$	6,681.7	$	(357.0	)	$	50,939.3
Fixed maturities, trading	10.5			284.4		331.8		—			626.7
Equity securities, available-for-sale	—			131.3		5.2		—			136.5
Equity securities, trading	—			0.3		252.5		—			252.8
Mortgage loans	—			10,054.2		1,775.5		(310.0		)	11,519.7
Real estate	—			8.4		1,171.9		—			1,180.3
Policy loans	—			834.0		30.9		—			864.9
Investment in unconsolidated entities	11,853.3			3,309.2		4,808.3		(19,101.8		)	869.0
Other investments	11.1			2,834.0		1,208.4		(1,631.4		)	2,422.1
Cash and cash equivalents	207.1			1,698.4		2,286.9		(15.2		)	4,177.2
Accrued investment income	—			521.6		64.5		(1.7		)	584.4
Premiums due and other receivables	0.1			916.7		1,327.1		(1,159.5		)	1,084.4
Deferred acquisition costs	—			2,394.8		195.2		—			2,590.0
Property and equipment	—			402.2		62.0		—			464.2
Goodwill	—			54.3		489.1		—			543.4
Other intangibles	—			27.9		886.8		—			914.7
Separate account assets	—			69,217.8		12,436.0		—			81,653.8
Other assets	78.0			947.8		1,567.7		(1,586.7		)	1,006.8
Total assets	$	12,160.1		$	138,251.9	$	35,581.5	$	(24,163.3	)	$	161,830.2
Liabilities
Contractholder funds	$	—		$	37,053.3	$	1,011.9	$	(278.7	)	$	37,786.5
Future policy benefits and claims	—			17,944.9		4,679.6		(188.3		)	22,436.2
Other policyholder funds	—			676.5		40.3		(0.4		)	716.4
Short-term debt	—			—		40.8		—			40.8
Long-term debt	2,448.6			99.4		433.3		(310.0		)	2,671.3
Income taxes currently payable	—			—		84.7		(69.4		)	15.3
Deferred income taxes	—			324.5		378.4		(102.9		)	600.0
Separate account liabilities	—			69,217.8		12,436.0		—			81,653.8
Other liabilities	28.1			5,375.1		4,538.4		(3,795.5		)	6,146.1
Total liabilities	2,476.7			130,691.5		23,643.4		(4,745.2		)	152,066.4
Redeemable noncontrolling interest	—			—		60.4		—			60.4
Stockholders’ equity
Series A preferred stock	—			—		—		—			—
Series B preferred stock	0.1			—		—		—			0.1
Common stock	4.5			2.5		—		(2.5		)	4.5
Additional paid-in capital	9,730.9			5,747.6		9,393.8		(15,141.4		)	9,730.9
Retained earnings	4,862.0			1,167.7		1,783.4		(2,951.1		)	4,862.0
Accumulated other comprehensive income	640.3			642.6		676.1		(1,318.7		)	640.3
Treasury stock, at cost	(5,554.4		)	—		—		—			(5,554.4		)
Total stockholders’ equity attributable to PFG	9,683.4			7,560.4		11,853.3		(19,413.7		)	9,683.4
Noncontrolling interest	—			—		24.4		(4.4		)	20.0
Total stockholders’ equity	9,683.4			7,560.4		11,877.7		(19,418.1		)	9,703.4
Total liabilities and stockholders’ equity	$	12,160.1		$	138,251.9	$	35,581.5	$	(24,163.3	)	$	161,830.2

Condensed Consolidating Statements of Operations

For the nine months September 30, 2013

	Principal			Principal Life			Principal Financial						Principal
	Financial			Insurance			Services, Inc. and						Financial
	Group, Inc.			Company			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Revenues
Premiums and other considerations	$	—		$	1,853.6		$	281.3		$	—		$	2,134.9
Fees and other revenues	—			1,272.3			1,325.8			(257.7		)	2,340.4
Net investment income	0.4			1,775.7			526.5			20.9			2,323.5
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities	6.3			(630.7		)	514.8			0.1			(109.5		)
Total other-than-temporary impairment losses on available-for-sale securities	—			(75.4		)	(5.8		)	—			(81.2		)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to (from) other comprehensive income	—			11.4			(2.6		)	—			8.8
Net impairment losses on available-for-sale securities	—			(64.0		)	(8.4		)	—			(72.4		)
Net realized capital gains (losses)	6.3			(694.7		)	506.4			0.1			(181.9		)
Total revenues	6.7			4,206.9			2,640.0			(236.7		)	6,616.9
Expenses
Benefits, claims and settlement expenses	—			2,828.8			466.7			(9.1		)	3,286.4
Dividends to policyholders	—			144.3			—			—			144.3
Operating expenses	105.2			1,378.6			1,113.2			(224.9		)	2,372.1
Total expenses	105.2			4,351.7			1,579.9			(234.0		)	5,802.8
Income (loss) before income taxes	(98.5		)	(144.8		)	1,060.1			(2.7		)	814.1
Income taxes (benefits)	(39.4		)	(136.0		)	304.0			(0.2		)	128.4
Equity in the net income (loss) of subsidiaries	730.1			530.2			(11.2		)	(1,249.1		)	—
Net income	671.0			521.4			744.9			(1,251.6		)	685.7
Net income attributable to noncontrolling interest	—			—			14.8			(0.1		)	14.7
Net income attributable to PFG	671.0			521.4			730.1			(1,251.5		)	671.0
Preferred stock dividends	24.7			—			—			—			24.7
Net income available to common stockholders	$	646.3		$	521.4		$	730.1		$	(1,251.5	)	$	646.3
Net income	$	671.0		$	521.4		$	744.9		$	(1,251.6	)	$	685.7
Other comprehensive loss	(683.9		)	(438.6		)	(225.6		)	679.8			(668.3		)
Comprehensive income (loss)	$	(12.9	)	$	82.8		$	519.3		$	(571.8	)	$	17.4

Condensed Consolidating Statements of Operations

For the nine months September 30, 2012

	Principal			Principal Life			Principal Financial						Principal
	Financial			Insurance			Services, Inc. and						Financial
	Group, Inc.			Company			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Revenues
Premiums and other considerations	$	—		$	2,265.7		$	253.6		$	—		$	2,519.3
Fees and other revenues	0.3			1,115.0			1,018.9			(225.1		)	1,909.1
Net investment income	2.7			1,869.8			521.9			15.2			2,409.6
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities	—			(296.9		)	496.8			(23.5		)	176.4
Total other-than-temporary impairment losses on available-for-sale securities	—			(111.5		)	(14.8		)	(0.1		)	(126.4		)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to other comprehensive income	—			27.1			4.1			—			31.2
Net impairment losses on available-for-sale securities	—			(84.4		)	(10.7		)	(0.1		)	(95.2		)
Net realized capital gains (losses)	—			(381.3		)	486.1			(23.6		)	81.2
Total revenues	3.0			4,869.2			2,280.5			(233.5		)	6,919.2
Expenses
Benefits, claims and settlement expenses	—			3,542.3			436.7			(9.5		)	3,969.5
Dividends to policyholders	—			149.5			—			—			149.5
Operating expenses	90.8			1,286.3			920.2			(196.2		)	2,101.1
Total expenses	90.8			4,978.1			1,356.9			(205.7		)	6,220.1
Income (loss) before income taxes	(87.8		)	(108.9		)	923.6			(27.8		)	699.1
Income taxes (benefits)	(34.4		)	(126.4		)	261.7			(0.5		)	100.4
Equity in the net income (loss) of subsidiaries	636.8			438.6			(9.7		)	(1,065.7		)	—
Net income	583.4			456.1			652.2			(1,093.0		)	598.7
Net income attributable to noncontrolling interest	—			—			15.4			(0.1		)	15.3
Net income attributable to PFG	583.4			456.1			636.8			(1,092.9		)	583.4
Preferred stock dividends	24.7			—			—			—			24.7
Net income available to common stockholders	$	558.7		$	456.1		$	636.8		$	(1,092.9	)	$	558.7
Net income	$	583.4		$	456.1		$	652.2		$	(1,093.0	)	$	598.7
Other comprehensive income	564.6			546.2			104.7			(597.4		)	618.1
Comprehensive income	$	1,148.0		$	1,002.3		$	756.9		$	(1,690.4	)	$	1,216.8

Condensed Consolidating Statements of Cash Flows

For the nine months September 30, 2013

	Principal			Principal Life			Principal Financial						Principal
	Financial			Insurance			Services, Inc. and						Financial
	Group, Inc.			Company			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Operating activities
Net cash provided by (used in) operating activities	$	(12.8	)	$	1,412.5		$	(132.2	)	$	130.4		$	1,397.9
Investing activities
Available-for-sale securities:
Purchases	—			(6,094.0		)	(926.7		)	8.4			(7,012.3		)
Sales	—			1,281.4			370.1			(24.8		)	1,626.7
Maturities	—			5,186.5			596.7			—			5,783.2
Mortgage loans acquired or originated	—			(2,226.3		)	(175.6		)	381.9			(2,020.0		)
Mortgage loans sold or repaid	—			1,408.3			583.2			(420.7		)	1,570.8
Real estate acquired	—			—			(59.0		)	—			(59.0		)
Net purchases of property and equipment	—			(20.2		)	(2.5		)	—			(22.7		)
Purchases of interests in subsidiaries, net of cash acquired	—			—			(1,268.3		)	—			(1,268.3		)
Dividends and returns of capital received from unconsolidated entities	169.3			157.9			169.3			(496.5		)	—
Net change in other investments	(3.2		)	76.1			(128.4		)	24.3			(31.2		)
Net cash provided by (used in) investing activities	166.1			(230.3		)	(841.2		)	(527.4		)	(1,432.8		)
Financing activities
Issuance of common stock	80.2			—			—			—			80.2
Acquisition of treasury stock	(153.4		)	—			—			—			(153.4		)
Proceeds from financing element derivatives	—			46.7			—			—			46.7
Payments for financing element derivatives	—			(36.9		)	—			—			(36.9		)
Excess tax benefits from share-based payment arrangements	—			2.5			6.1			—			8.6
Purchase of subsidiary shares from noncontrolling interest	—			—			(51.7		)	—			(51.7		)
Sale of subsidiary shares to noncontrolling interest	—			—			32.1			—			32.1
Dividends to common stockholders	(211.7		)	—			—			—			(211.7		)
Dividends to preferred stockholders	(24.7		)	—			—			—			(24.7		)
Issuance of long-term debt	—			—			24.1			—			24.1
Principal repayments of long-term debt	—			—			(197.8		)	(14.4		)	(212.2		)
Net proceeds from short-term borrowings	—			—			131.6			—			131.6
Dividends and capital paid to parent	—			(169.3		)	(327.2		)	496.5			—
Investment contract deposits	—			4,985.4			284.8			—			5,270.2
Investment contract withdrawals	—			(7,051.1		)	(4.5		)	—			(7,055.6		)
Net decrease in banking operation deposits	—			—			(276.2		)	—			(276.2		)
Other	—			(6.3		)	—			—			(6.3		)
Net cash used in financing activities	(309.6		)	(2,229.0		)	(378.7		)	482.1			(2,435.2		)
Net decrease in cash and cash equivalents	(156.3		)	(1,046.8		)	(1,352.1		)	85.1			(2,470.1		)
Cash and cash equivalents at beginning of period	207.1			1,698.4			2,286.9			(15.2		)	4,177.2
Cash and cash equivalents at end of period	$	50.8		$	651.6		$	934.8		$	69.9		$	1,707.1

Condensed Consolidating Statements of Cash Flows

For the nine months September 30, 2012

	Principal			Principal Life			Principal Financial						Principal
	Financial			Insurance			Services, Inc. and						Financial
	Group, Inc.			Company			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Operating activities
Net cash provided by (used in) operating activities	$	49.2		$	2,369.3		$	(204.2	)	$	159.4		$	2,373.7
Investing activities
Available-for-sale securities:
Purchases	—			(5,753.7		)	(739.5		)	25.7			(6,467.5		)
Sales	—			862.7			98.8			(15.0		)	946.5
Maturities	—			4,058.9			643.8			—			4,702.7
Mortgage loans acquired or originated	—			(1,687.2		)	(177.4		)	52.8			(1,811.8		)
Mortgage loans sold or repaid	—			1,104.6			280.3			(218.2		)	1,166.7
Real estate acquired	—			—			(114.8		)	—			(114.8		)
Net purchases of property and equipment	—			(22.4		)	(13.2		)	—			(35.6		)
Purchases of interests in subsidiaries, net of cash acquired	—			—			(62.5		)	—			(62.5		)
Dividends and returns of capital received from unconsolidated entities	539.8			435.0			539.8			(1,514.6		)	—
Net change in other investments	(0.2		)	(14.8		)	(14.8		)	(13.1		)	(42.9		)
Net cash provided by (used in) investing activities	539.6			(1,016.9		)	440.5			(1,682.4		)	(1,719.2		)
Financing activities
Issuance of common stock	24.7			—			—			—			24.7
Acquisition of treasury stock	(272.7		)	—			—			—			(272.7		)
Proceeds from financing element derivatives	—			51.6			—			—			51.6
Payments for financing element derivatives	—			(38.3		)	—			—			(38.3		)
Excess tax benefits from share-based payment arrangements	—			4.7			5.1			—			9.8
Dividends to common stockholders	(169.6		)	—			—			—			(169.6		)
Dividends to preferred stockholders	(16.5		)	—			—			—			(16.5		)
Issuance of long-term debt	593.8			—			9.1			—			602.9
Principal repayments of long-term debt	—			—			(45.7		)	43.6			(2.1		)
Net repayments of short-term borrowings	—			—			(81.0		)	—			(81.0		)
Dividends and capital paid to parent	—			(539.8		)	(974.8		)	1,514.6			—
Investment contract deposits	—			4,481.7			317.0			—			4,798.7
Investment contract withdrawals	—			(6,123.8		)	(2.2		)	—			(6,126.0		)
Net increase in banking operation deposits	—			—			14.9			—			14.9
Other	—			(5.8		)	—			—			(5.8		)
Net cash provided by (used in) financing activities	159.7			(2,169.7		)	(757.6		)	1,558.2			(1,209.4		)
Net increase (decrease) in cash and cash equivalents	748.5			(817.3		)	(521.3		)	35.2			(554.9		)
Cash and cash equivalents at beginning of period	226.7			1,344.5			1,277.6			(14.9		)	2,833.9
Cash and cash equivalents at end of period	$	975.2		$	527.2		$	756.3		$	20.3		$	2,279.0

Condensed Consolidating Financial Information, Shelf Registration Guarantor (Table)

Condensed Consolidating Statements of Financial Position

September 30, 2013

						Principal Life
	Principal			Principal		Insurance Company						Principal
	Financial			Financial		and Other						Financial
	Group, Inc.			Services, Inc.		Subsidiaries						Group, Inc.
	Parent Only			Only		Combined			Eliminations			Consolidated
	(in millions)
Assets
Fixed maturities, available-for-sale	$	—		$	—	$	48,914.9		$	—		$	48,914.9
Fixed maturities, trading	—			—		572.9			—			572.9
Equity securities, available-for-sale	—			—		114.0			—			114.0
Equity securities, trading	—			—		666.2			—			666.2
Mortgage loans	—			—		11,868.1			—			11,868.1
Real estate	—			—		1,278.6			—			1,278.6
Policy loans	—			—		859.6			—			859.6
Investment in unconsolidated entities	11,642.3			11,404.6		900.3			(23,046.8		)	900.4
Other investments	9.3			55.8		2,028.6			(0.1		)	2,093.6
Cash and cash equivalents	50.8			491.0		1,822.1			(656.8		)	1,707.1
Accrued investment income	—			—		571.2			—			571.2
Premiums due and other receivables	—			0.9		2,261.2			(1,101.4		)	1,160.7
Deferred acquisition costs	—			—		3,007.6			—			3,007.6
Property and equipment	—			—		479.1			—			479.1
Goodwill	—			—		1,127.5			—			1,127.5
Other intangibles	—			—		1,497.4			—			1,497.4
Separate account assets	—			—		123,800.5			—			123,800.5
Other assets	66.7			88.1		1,116.4			(203.2		)	1,068.0
Total assets	$	11,769.1		$	12,040.4	$	202,886.2		$	(25,008.3	)	$	201,687.4
Liabilities
Contractholder funds	$	—		$	—	$	36,402.7		$	—		$	36,402.7
Future policy benefits and claims	—			—		22,324.2			—			22,324.2
Other policyholder funds	—			—		753.6			—			753.6
Short-term debt	—			—		453.9			(278.4		)	175.5
Long-term debt	2,448.7			—		1,228.9			(1,084.3		)	2,593.3
Income taxes currently payable	—			10.9		55.2			(58.2		)	7.9
Deferred income taxes	—			—		776.0			(141.4		)	634.6
Separate account liabilities	—			—		123,800.5			—			123,800.5
Other liabilities	42.0			387.2		5,357.1			(399.1		)	5,387.2
Total liabilities	2,490.7			398.1		191,152.1			(1,961.4		)	192,079.5
Redeemable noncontrolling interest	—			—		234.5			—			234.5
Stockholders’ equity
Series A preferred stock	—			—		—			—			—
Series B preferred stock	0.1			—		—			—			0.1
Common stock	4.6			—		17.8			(17.8		)	4.6
Additional paid-in capital	9,749.3			9,160.8		9,068.4			(18,229.2		)	9,749.3
Retained earnings	5,249.9			2,467.0		2,327.3			(4,794.3		)	5,249.9
Accumulated other comprehensive income (loss)	(17.7		)	14.5		(6.9		)	(7.6		)	(17.7		)
Treasury stock, at cost	(5,707.8		)	—		(2.0		)	2.0			(5,707.8		)
Total stockholders’ equity attributable to PFG	9,278.4			11,642.3		11,404.6			(23,046.9		)	9,278.4
Noncontrolling interest	—			—		95.0			—			95.0
Total stockholders’ equity	9,278.4			11,642.3		11,499.6			(23,046.9		)	9,373.4
Total liabilities and stockholders’ equity	$	11,769.1		$	12,040.4	$	202,886.2		$	(25,008.3	)	$	201,687.4

Condensed Consolidating Statements of Financial Position

December 31, 2012

						Principal Life
	Principal			Principal		Insurance Company						Principal
	Financial			Financial		and Other						Financial
	Group, Inc.			Services, Inc.		Subsidiaries						Group, Inc.
	Parent Only			Only		Combined			Eliminations			Consolidated
	(in millions)
Assets
Fixed maturities, available-for-sale	$	—		$	—	$	50,939.3		$	—		$	50,939.3
Fixed maturities, trading	10.5			—		616.2			—			626.7
Equity securities, available-for-sale	—			—		136.5			—			136.5
Equity securities, trading	—			—		252.8			—			252.8
Mortgage loans	—			—		11,519.7			—			11,519.7
Real estate	—			—		1,180.3			—			1,180.3
Policy loans	—			—		864.9			—			864.9
Investment in unconsolidated entities	11,853.3			10,632.1		860.2			(22,476.6		)	869.0
Other investments	11.1			39.6		2,371.4			—			2,422.1
Cash and cash equivalents	207.1			612.5		4,241.3			(883.7		)	4,177.2
Accrued investment income	—			—		584.4			—			584.4
Premiums due and other receivables	0.1			1,122.1		2,206.7			(2,244.5		)	1,084.4
Deferred acquisition costs	—			—		2,590.0			—			2,590.0
Property and equipment	—			—		464.2			—			464.2
Goodwill	—			—		543.4			—			543.4
Other intangibles	—			—		914.7			—			914.7
Separate account assets	—			—		81,653.8			—			81,653.8
Other assets	78.0			51.0		1,003.5			(125.7		)	1,006.8
Total assets	$	12,160.1		$	12,457.3	$	162,943.3		$	(25,730.5	)	$	161,830.2
Liabilities
Contractholder funds	$	—		$	—	$	37,786.5		$	—		$	37,786.5
Future policy benefits and claims	—			—		22,436.2			—			22,436.2
Other policyholder funds	—			—		716.4			—			716.4
Short-term debt	—			—		2,564.1			(2,523.3		)	40.8
Long-term debt	2,448.6			—		222.7			—			2,671.3
Income taxes currently payable	—			0.1		47.2			(32.0		)	15.3
Deferred income taxes	—			—		686.1			(86.1		)	600.0
Separate account liabilities	—			—		81,653.8			—			81,653.8
Other liabilities	28.1			603.9		6,117.8			(603.7		)	6,146.1
Total liabilities	2,476.7			604.0		152,230.8			(3,245.1		)	152,066.4
Redeemable noncontrolling interest	—			—		60.4			—			60.4
Stockholders’ equity
Series A preferred stock	—			—		—			—			—
Series B preferred stock	0.1			—		—			—			0.1
Common stock	4.5			—		17.8			(17.8		)	4.5
Additional paid-in capital	9,730.9			9,393.8		8,287.7			(17,681.5		)	9,730.9
Retained earnings	4,862.0			1,783.4		1,666.7			(3,450.1		)	4,862.0
Accumulated other comprehensive income	640.3			676.1		661.9			(1,338.0		)	640.3
Treasury stock, at cost	(5,554.4		)	—		(2.0		)	2.0			(5,554.4		)
Total stockholders’ equity attributable to PFG	9,683.4			11,853.3		10,632.1			(22,485.4		)	9,683.4
Noncontrolling interest	—			—		20.0			—			20.0
Total stockholders’ equity	9,683.4			11,853.3		10,652.1			(22,485.4		)	9,703.4
Total liabilities and stockholders’ equity	$	12,160.1		$	12,457.3	$	162,943.3		$	(25,730.5	)	$	161,830.2

Condensed Consolidating Statements of Operations

For the nine months September 30, 2013

							Principal Life
	Principal			Principal			Insurance						Principal
	Financial			Financial			Company and						Financial
	Group, Inc.			Services, Inc.			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Revenues
Premiums and other considerations	$	—		$	—		$	2,134.9		$	—		$	2,134.9
Fees and other revenues	—			0.9			2,357.8			(18.3		)	2,340.4
Net investment income	0.4			1.1			2,321.8			0.2			2,323.5
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities	6.3			2.6			(118.4		)	—			(109.5		)
Total other-than-temporary impairment losses on available-for-sale securities	—			—			(81.2		)	—			(81.2		)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to other comprehensive income	—			—			8.8			—			8.8
Net impairment losses on available-for-sale securities	—			—			(72.4		)	—			(72.4		)
Net realized capital gains (losses)	6.3			2.6			(190.8		)	—			(181.9		)
Total revenues	6.7			4.6			6,623.7			(18.1		)	6,616.9
Expenses
Benefits, claims and settlement expenses	—			—			3,286.4			—			3,286.4
Dividends to policyholders	—			—			144.3			—			144.3
Operating expenses	105.2			8.4			2,276.6			(18.1		)	2,372.1
Total expenses	105.2			8.4			5,707.3			(18.1		)	5,802.8
Income (loss) before income taxes	(98.5		)	(3.8		)	916.4			—			814.1
Income taxes (benefits)	(39.4		)	(2.2		)	170.0			—			128.4
Equity in the net income of subsidiaries	730.1			731.7			—			(1,461.8		)	—
Net income	671.0			730.1			746.4			(1,461.8		)	685.7
Net income attributable to noncontrolling interest	—			—			14.7			—			14.7
Net income attributable to PFG	671.0			730.1			731.7			(1,461.8		)	671.0
Preferred stock dividends	24.7			—			—			—			24.7
Net income available to common stockholders	$	646.3		$	730.1		$	731.7		$	(1,461.8	)	$	646.3
Net income	$	671.0		$	730.1		$	746.4		$	(1,461.8	)	$	685.7
Other comprehensive loss	(683.9		)	(671.8		)	(679.2		)	1,366.6			(668.3		)
Comprehensive income (loss)	$	(12.9	)	$	58.3		$	67.2		$	(95.2	)	$	17.4

Condensed Consolidating Statements of Operations

For the nine months September 30, 2012

							Principal Life
	Principal			Principal			Insurance						Principal
	Financial			Financial			Company and						Financial
	Group, Inc.			Services, Inc.			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Revenues
Premiums and other considerations	$	—		$	—		$	2,519.3		$	—		$	2,519.3
Fees and other revenues	0.3			—			1,909.6			(0.8		)	1,909.1
Net investment income	2.7			0.1			2,406.4			0.4			2,409.6
Net realized capital gains, excluding impairment losses on available-for-sale securities	—			1.0			175.4			—			176.4
Total other-than-temporary impairment losses on available-for-sale securities	—			—			(126.4		)	—			(126.4		)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified  to other comprehensive income	—			—			31.2			—			31.2
Net impairment losses on available-for-sale securities	—			—			(95.2		)	—			(95.2		)
Net realized capital gains	—			1.0			80.2			—			81.2
Total revenues	3.0			1.1			6,915.5			(0.4		)	6,919.2
Expenses
Benefits, claims and settlement expenses	—			—			3,969.5			—			3,969.5
Dividends to policyholders	—			—			149.5			—			149.5
Operating expenses	90.8			4.4			2,006.3			(0.4		)	2,101.1
Total expenses	90.8			4.4			6,125.3			(0.4		)	6,220.1
Income (loss) before income taxes	(87.8		)	(3.3		)	790.2			—			699.1
Income taxes (benefits)	(34.4		)	(4.7		)	139.5			—			100.4
Equity in the net income of subsidiaries	636.8			635.4			—			(1,272.2		)	—
Net income	583.4			636.8			650.7			(1,272.2		)	598.7
Net income attributable to noncontrolling interest	—			—			15.3			—			15.3
Net income attributable to PFG	583.4			636.8			635.4			(1,272.2		)	583.4
Preferred stock dividends	24.7			—			—			—			24.7
Net income available to common stockholders	$	558.7		$	636.8		$	635.4		$	(1,272.2	)	$	558.7
Net income	$	583.4		$	636.8		$	650.7		$	(1,272.2	)	$	598.7
Other comprehensive income	564.6			615.4			578.3			(1,140.2		)	618.1
Comprehensive income	$	1,148.0		$	1,252.2		$	1,229.0		$	(2,412.4	)	$	1,216.8

Condensed Consolidating Statements of Cash Flows

For the nine months September 30, 2013

							Principal Life
	Principal			Principal			Insurance						Principal
	Financial			Financial			Company and						Financial
	Group, Inc.			Services, Inc.			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Operating activities
Net cash provided by (used in) operating activities	$	(12.8	)	$	870.9		$	1,473.4		$	(933.6	)	$	1,397.9
Investing activities
Available-for-sale securities:
Purchases	—			—			(7,012.3		)	—			(7,012.3		)
Sales	—			—			1,626.7			—			1,626.7
Maturities	—			—			5,783.2			—			5,783.2
Mortgage loans acquired or originated	—			—			(2,020.0		)	—			(2,020.0		)
Mortgage loans sold or repaid	—			—			1,570.8			—			1,570.8
Real estate acquired	—			—			(59.0		)	—			(59.0		)
Net purchases of property and equipment	—			—			(22.7		)	—			(22.7		)
Purchases of interests in subsidiaries, net of cash acquired	—			—			(1,268.3		)	—			(1,268.3		)
Dividends and returns of capital received from (contributions to) unconsolidated entities	169.3			(809.2		)	—			639.9			—
Net change in other investments	(3.2		)	(13.9		)	(14.1		)	—			(31.2		)
Net cash provided by (used in) investing activities	166.1			(823.1		)	(1,415.7		)	639.9			(1,432.8		)
Financing activities
Issuance of common stock	80.2			—			—			—			80.2
Acquisition of treasury stock	(153.4		)	—			—			—			(153.4		)
Proceeds from financing element derivatives	—			—			46.7			—			46.7
Payments for financing element derivatives	—			—			(36.9		)	—			(36.9		)
Excess tax benefits from share-based payment arrangements	—			—			8.6			—			8.6
Purchase of subsidiary shares from noncontrolling interest	—			—			(51.7		)	—			(51.7		)
Sale of subsidiary shares to noncontrolling interest	—			—			32.1			—			32.1
Dividends to common stockholders	(211.7		)	—			—			—			(211.7		)
Dividends to preferred stockholders	(24.7		)	—			—			—			(24.7		)
Issuance of long-term debt	—			—			1,108.4			(1,084.3		)	24.1
Principal repayments of long-term debt	—			—			(212.2		)	—			(212.2		)
Net proceeds from (repayments of) short-term borrowings	—			—			(2,113.2		)	2,244.8			131.6
Capital received from (dividends and capital paid to) parent	—			(169.3		)	809.2			(639.9		)	—
Investment contract deposits	—			—			5,270.2			—			5,270.2
Investment contract withdrawals	—			—			(7,055.6		)	—			(7,055.6		)
Net decrease in banking operation deposits	—			—			(276.2		)	—			(276.2		)
Other	—			—			(6.3		)	—			(6.3		)
Net cash used in financing activities	(309.6		)	(169.3		)	(2,476.9		)	520.6			(2,435.2		)
Net decrease in cash and cash equivalents	(156.3		)	(121.5		)	(2,419.2		)	226.9			(2,470.1		)
Cash and cash equivalents at beginning of period	207.1			612.5			4,241.3			(883.7		)	4,177.2
Cash and cash equivalents at end of period	$	50.8		$	491.0		$	1,822.1		$	(656.8	)	$	1,707.1

Condensed Consolidating Statements of Cash Flows

For the nine months September 30, 2012

							Principal Life
	Principal			Principal			Insurance						Principal
	Financial			Financial			Company and						Financial
	Group, Inc.			Services, Inc.			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Operating activities
Net cash provided by (used in) operating activities	$	49.2		$	(164.6	)	$	2,303.2		$	185.9		$	2,373.7
Investing activities
Available-for-sale securities:
Purchases	—			—			(6,467.5		)	—			(6,467.5		)
Sales	—			—			946.5			—			946.5
Maturities	—			—			4,702.7			—			4,702.7
Mortgage loans acquired or originated	—			—			(1,811.8		)	—			(1,811.8		)
Mortgage loans sold or repaid	—			—			1,166.7			—			1,166.7
Real estate acquired	—			—			(114.8		)	—			(114.8		)
Net purchases of property and equipment	—			—			(35.6		)	—			(35.6		)
Purchases of interests in subsidiaries, net of cash acquired	—			—			(62.5		)	—			(62.5		)
Dividends and returns of capital received from unconsolidated entities	539.8			538.6			—			(1,078.4		)	—
Net change in other investments	(0.2		)	(27.1		)	(15.6		)	—			(42.9		)
Net cash provided by (used in) investing activities	539.6			511.5			(1,691.9		)	(1,078.4		)	(1,719.2		)
Financing activities
Issuance of common stock	24.7			—			—			—			24.7
Acquisition of treasury stock	(272.7		)	—			—			—			(272.7		)
Proceeds from financing element derivatives	—			—			51.6			—			51.6
Payments for financing element derivatives	—			—			(38.3		)	—			(38.3		)
Excess tax benefits from share-based payment arrangements	—			—			9.8			—			9.8
Dividends to common stockholders	(169.6		)	—			—			—			(169.6		)
Dividends to preferred stockholders	(16.5		)	—			—			—			(16.5		)
Issuance of long-term debt	593.8			—			9.1			—			602.9
Principal repayments of long-term debt	—			—			(2.1		)	—			(2.1		)
Net repayments of short-term borrowings	—			(50.0		)	(13.6		)	(17.4		)	(81.0		)
Dividends and capital paid to parent	—			(539.8		)	(538.6		)	1,078.4			—
Investment contract deposits	—			—			4,798.7			—			4,798.7
Investment contract withdrawals	—			—			(6,126.0		)	—			(6,126.0		)
Net increase in banking operation deposits	—			—			14.9			—			14.9
Other	—			—			(5.8		)	—			(5.8		)
Net cash provided by (used in) financing activities	159.7			(589.8		)	(1,840.3		)	1,061.0			(1,209.4		)
Net increase (decrease) in cash and cash equivalents	748.5			(242.9		)	(1,229.0		)	168.5			(554.9		)
Cash and cash equivalents at beginning of period	226.7			702.4			2,787.9			(883.1		)	2,833.9
Cash and cash equivalents at end of period	$	975.2		$	459.5		$	1,558.9		$	(714.6	)	$	2,279.0