EX-12 2 a14-9577_1ex12.htm EX-12

Exhibit 12

 

Principal Financial Group, Inc.

Computation of Earnings to Fixed Charges Ratio

 

The ratio of earnings to fixed charges is a measure of our ability to cover fixed costs with current period earnings. A high ratio indicates that earnings are sufficiently covering committed expenses. The following table sets forth, for the periods indicated, our ratios of: (1) earnings to fixed charges before interest credited on investment products and (2) earnings to fixed charges.

 

 

 

 

For the three months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ended March 31,

 

For the year ended December 31,

 

 

 

 

2014

 

2013

 

2013

 

2012

 

2011

 

2010

 

2009

 

 

 

 

(in millions)

 

1.

Income from continuing operations before income taxes

 

$

376.4

 

$

228.2

 

$

1,124.0

 

$

960.0

 

$

872.8

 

$

771.4

 

$

645.1

 

2.

Interest expense

 

35.2

 

36.2

 

143.4

 

127.1

 

140.5

 

122.9

 

118.0

 

3.

Interest factor of rental expense

 

1.4

 

1.5

 

5.7

 

6.1

 

6.1

 

6.4

 

6.7

 

4.

Undistributed income from equity investees

 

(23.6

)

(27.1

)

(107.3

)

(99.9

)

(98.5

)

(130.6

)

(68.7

)

5.

Earnings before interest credited on investment products

 

389.4

 

238.8

 

1,165.8

 

993.3

 

920.9

 

770.1

 

701.1

 

6.

Interest credited on investment products

 

50.5

 

72.6

 

256.6

 

366.3

 

442.4

 

579.2

 

725.3

 

7.

Earnings

 

$

439.9

 

$

311.4

 

$

1,422.4

 

$

1,359.6

 

$

1,363.3

 

$

1,349.3

 

$

1,426.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.

Interest expense

 

$

35.2

 

$

36.2

 

$

143.4

 

$

127.1

 

$

140.5

 

$

122.9

 

$

118.0

 

9.

Interest factor of rental expense

 

1.4

 

1.5

 

5.7

 

6.1

 

6.1

 

6.4

 

6.7

 

10.

Preferred stock dividends by registrant

 

8.2

 

8.2

 

33.0

 

33.0

 

33.0

 

33.0

 

33.0

 

11.

Fixed charges before interest credited on investment products

 

44.8

 

45.9

 

182.1

 

166.2

 

179.6

 

162.3

 

157.7

 

12.

Interest credited on investment products

 

50.5

 

72.6

 

256.6

 

366.3

 

442.4

 

579.2

 

725.3

 

13.

Fixed charges

 

$

95.3

 

$

118.5

 

$

438.7

 

$

532.5

 

$

622.0

 

$

741.5

 

$

883.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14.

Ratio of earnings to fixed charges before interest credited on investment products (Line item 5/Line item 11)

 

8.7

 

5.2

 

6.4

 

6.0

 

5.1

 

4.7

 

4.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15.

Ratio of earnings to fixed charges (Line item 7/Line item 13)

 

4.6

 

2.6

 

3.2

 

2.6

 

2.2

 

1.8

 

1.6