EX-12 2 a15-17793_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 nine months

 

 

 

 

 

 

 

 

 

 

 

 

 

ended September 30,

 

For the year ended December 31,

 

 

 

2015

 

2014

 

2014

 

2013

 

2012

 

2011

 

2010

 

 

 

(in millions)

 

1.

Income from continuing operations before income taxes

 

$

1,121.8

 

$

1,177.7

 

$

1,494.9

 

$

1,124.0

 

$

960.0

 

$

872.8

 

$

771.4

 

2.

Interest expense

 

136.5

 

101.7

 

135.5

 

143.4

 

127.1

 

140.5

 

122.9

 

3.

Interest factor of rental expense

 

4.4

 

4.3

 

5.9

 

5.7

 

6.1

 

6.1

 

6.4

 

4.

Undistributed income from equity investees

 

(79.9

)

(80.4

)

(113.9

)

(107.3

)

(99.9

)

(98.5

)

(130.6

)

5.

Earnings before interest credited on investment products

 

1,182.8

 

1,203.3

 

1,522.4

 

1,165.8

 

993.3

 

920.9

 

770.1

 

6.

Interest credited on investment products

 

115.3

 

143.0

 

189.6

 

256.6

 

366.3

 

442.4

 

579.2

 

7.

Earnings

 

$

1,298.1

 

$

1,346.3

 

$

1,712.0

 

$

1,422.4

 

$

1,359.6

 

$

1,363.3

 

$

1,349.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.

Interest expense

 

$

136.5

 

$

101.7

 

$

135.5

 

$

143.4

 

$

127.1

 

$

140.5

 

$

122.9

 

9.

Interest factor of rental expense

 

4.4

 

4.3

 

5.9

 

5.7

 

6.1

 

6.1

 

6.4

 

10.

Preferred stock dividends by registrant

 

16.5

 

24.7

 

33.0

 

33.0

 

33.0

 

33.0

 

33.0

 

11

Excess of redemption value over carrying value of preferred shares redeemed

 

8.2

 

—

 

—

 

—

 

—

 

—

 

—

 

12.

Fixed charges before interest credited on investment products

 

165.6

 

130.7

 

174.4

 

182.1

 

166.2

 

179.6

 

162.3

 

13.

Interest credited on investment products

 

115.3

 

143.0

 

189.6

 

256.6

 

366.3

 

442.4

 

579.2

 

14.

Fixed charges

 

$

280.9

 

$

273.7

 

$

364.0

 

$

438.7

 

$

532.5

 

$

622.0

 

$

741.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15.

Ratio of earnings to fixed charges before interest credited on investment products (Line item 5/Line item 12)

 

7.1

 

9.2

 

8.7

 

6.4

 

6.0

 

5.1

 

4.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16.

Ratio of earnings to fixed charges (Line item 7/Line item 14)

 

4.6

 

4.9

 

4.7

 

3.2

 

2.6

 

2.2

 

1.8