EX-12 2 a17-13274_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 six months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ended June 30,

 

For the year ended December 31,

 

 

 

 

2017

 

2016

 

2016

 

2015

 

2014

 

2013

 

2012

 

 

 

 

(in millions)

 

1.

Income from continuing operations before income taxes

 

$

779.6

 

$

839.7

 

$

1,591.7

 

$

1,430.8

 

$

1,494.9

 

$

1,124.0

 

$

960.0

 

2.

Interest expense

 

74.1

 

84.1

 

165.8

 

178.5

 

135.5

 

143.4

 

127.1

 

3.

Interest factor of rental expense

 

2.5

 

2.4

 

5.1

 

4.9

 

5.9

 

5.7

 

6.1

 

4.

Undistributed income from equity investees

 

(93.2)

 

(54.6)

 

(142.2)

 

(106.3)

 

(113.9)

 

(107.3)

 

(99.9)

 

5.

Earnings before interest credited on investment products

 

763.0

 

871.6

 

1,620.4

 

1,507.9

 

1,522.4

 

1,165.8

 

993.3

 

6.

Interest credited on investment products

 

90.8

 

84.5

 

173.9

 

152.0

 

189.6

 

256.6

 

366.3

 

7.

Earnings

 

$

853.8

 

$

956.1

 

$

1,794.3

 

$

1,659.9

 

$

1,712.0

 

$

1,422.4

 

$

1,359.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.

Interest expense

 

$

74.1

 

$

84.1

 

$

165.8

 

$

178.5

 

$

135.5

 

$

143.4

 

$

127.1

 

9.

Interest factor of rental expense

 

2.5

 

2.4

 

5.1

 

4.9

 

5.9

 

5.7

 

6.1

 

10.

Preferred stock dividends by registrant

 

—

 

—

 

—

 

16.5

 

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

 

76.6

 

86.5

 

170.9

 

208.1

 

174.4

 

182.1

 

166.2

 

13.

Interest credited on investment products

 

90.8

 

84.5

 

173.9

 

152.0

 

189.6

 

256.6

 

366.3

 

14.

Fixed charges

 

$

167.4

 

$

171.0

 

$

344.8

 

$

360.1

 

$

364.0

 

$

438.7

 

$

532.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15.

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

 

10.0

 

10.1

 

9.5

 

7.2

 

8.7

 

6.4

 

6.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16.

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

 

5.1

 

5.6

 

5.2

 

4.6

 

4.7

 

3.2

 

2.6

 

 

137