Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2017

Condensed Consolidating Financial Information

Condensed Consolidating Financial Information, Notes Guarantor (Table)

Condensed Consolidating Statements of Financial Position

September 30, 2017

	Principal		Principal Life		Principal Financial				Principal
	Financial		Insurance		Services, Inc. and				Financial
	Group, Inc.		Company		Other Subsidiaries				Group, Inc.
	Parent Only		Only		Combined (1)		Eliminations		Consolidated
	(in millions)
Assets
Fixed maturities, available-for-sale	$	—	$	52,455.8	$	7,049.8	$	(367.8)	$	59,137.8
Fixed maturities, trading	—		55.7		176.8		—		232.5
Equity securities, available-for-sale	—		92.9		25.4		—		118.3
Equity securities, trading	—		6.3		1,664.6		—		1,670.9
Mortgage loans	—		13,288.9		1,420.9		(689.4)		14,020.4
Real estate	—		4.2		1,646.0		—		1,650.2
Policy loans	—		770.5		41.5		—		812.0
Investment in unconsolidated entities	14,631.1		2,466.1		7,063.8		(23,310.4)		850.6
Other investments	10.4		4,674.9		2,065.0		(4,039.6)		2,710.7
Cash and cash equivalents	618.1		781.3		2,160.3		(764.7)		2,795.0
Accrued investment income	—		561.4		75.6		(2.4)		634.6
Premiums due and other receivables	—		1,678.7		3,288.4		(3,450.5)		1,516.6
Deferred acquisition costs	—		3,265.6		215.8		—		3,481.4
Property and equipment	—		654.2		100.4		—		754.6
Goodwill	—		54.3		1,000.9		—		1,055.2
Other intangibles	—		22.1		1,292.6		—		1,314.7
Separate account assets	—		113,959.3		40,126.6		—		154,085.9
Other assets	539.9		1,019.3		4,349.4		(4,816.4)		1,092.2
Total assets	$	15,799.5	$	195,811.5	$	73,763.8	$	(37,441.2)	$	247,933.6
Liabilities
Contractholder funds	$	—	$	35,562.5	$	2,989.8	$	(343.7)	$	38,208.6
Future policy benefits and claims	—		27,109.2		5,899.0		(879.1)		32,129.1
Other policyholder funds	—		802.4		125.5		(1.7)		926.2
Short-term debt	—		—		58.8		—		58.8
Long-term debt	3,127.7		—		709.5		(661.8)		3,175.4
Income taxes currently payable	—		—		338.9		(285.2)		53.7
Deferred income taxes	—		1,152.0		1,366.4		(1,003.2)		1,515.2
Separate account liabilities	—		113,959.3		40,126.6		—		154,085.9
Other liabilities	675.4		7,915.9		7,411.7		(10,418.7)		5,584.3
Total liabilities	3,803.1		186,501.3		59,026.2		(13,593.4)		235,737.2
Redeemable noncontrolling interest	—		—		129.1		—		129.1
Stockholders’ equity
Common stock	4.7		2.5		—		(2.5)		4.7
Additional paid-in capital	9,886.8		6,340.6		9,037.8		(15,378.4)		9,886.8
Retained earnings	8,784.6		1,723.2		5,037.1		(6,760.3)		8,784.6
Accumulated other comprehensive income	47.0		1,243.9		457.6		(1,701.5)		47.0
Treasury stock, at cost	(6,726.7)		—		—		—		(6,726.7)
Total stockholders’ equity attributable to PFG	11,996.4		9,310.2		14,532.5		(23,842.7)		11,996.4
Noncontrolling interest	—		—		76.0		(5.1)		70.9
Total stockholders’ equity	11,996.4		9,310.2		14,608.5		(23,847.8)		12,067.3
Total liabilities and stockholders’ equity	$	15,799.5	$	195,811.5	$	73,763.8	$	(37,441.2)	$	247,933.6

(1) PFG sponsors nonqualified benefit plans. Nonqualified benefit plan assets and liabilities held in Rabbi trusts were $631.2 million and $532.6 million, respectively.

Condensed Consolidating Statements of Financial Position

December 31, 2016

	Principal		Principal Life		Principal Financial				Principal
	Financial		Insurance		Services, Inc. and				Financial
	Group, Inc.		Company		Other Subsidiaries				Group, Inc.
	Parent Only		Only		Combined (1)		Eliminations		Consolidated
	(in millions)
Assets
Fixed maturities, available-for-sale	$	—	$	48,672.1	$	6,559.9	$	(385.9)	$	54,846.1
Fixed maturities, trading	—		135.6		262.8		—		398.4
Equity securities, available-for-sale	—		96.3		2.6		—		98.9
Equity securities, trading	—		8.2		1,405.2		—		1,413.4
Mortgage loans	—		12,460.7		1,289.4		(519.9)		13,230.2
Real estate	—		4.4		1,364.4		—		1,368.8
Policy loans	—		784.8		39.0		—		823.8
Investment in unconsolidated entities	12,597.9		2,071.1		6,493.7		(20,389.5)		773.2
Other investments	9.8		4,740.0		1,783.0		(3,650.1)		2,882.7
Cash and cash equivalents	882.6		675.1		2,082.8		(920.9)		2,719.6
Accrued investment income	—		513.7		74.5		(7.6)		580.6
Premiums due and other receivables	—		1,538.0		2,836.0		(3,012.1)		1,361.9
Deferred acquisition costs	—		3,184.2		196.0		—		3,380.2
Property and equipment	—		610.4		88.6		—		699.0
Goodwill	—		54.3		966.5		—		1,020.8
Other intangibles	—		23.5		1,301.8		—		1,325.3
Separate account assets	—		103,661.9		36,170.7		—		139,832.6
Other assets	573.7		969.5		3,507.7		(3,792.1)		1,258.8
Total assets	$	14,064.0	$	180,203.8	$	66,424.6	$	(32,678.1)	$	228,014.3
Liabilities
Contractholder funds	$	—	$	35,337.7	$	2,949.2	$	(333.3)	$	37,953.6
Future policy benefits and claims	—		24,392.6		5,312.1		(704.0)		29,000.7
Other policyholder funds	—		780.7		111.0		(1.3)		890.4
Short-term debt	—		—		51.4		—		51.4
Long-term debt	3,126.4		—		495.1		(495.8)		3,125.7
Income taxes currently payable	—		—		124.3		(111.4)		12.9
Deferred income taxes	—		533.6		1,111.9		(673.1)		972.4
Separate account liabilities	—		103,661.9		36,170.7		—		139,832.6
Other liabilities	710.3		7,300.9		7,425.9		(9,653.8)		5,783.3
Total liabilities	3,836.7		172,007.4		53,751.6		(11,972.7)		217,623.0
Redeemable noncontrolling interest	—		—		97.5		—		97.5
Stockholders’ equity
Common stock	4.7		2.5		—		(2.5)		4.7
Additional paid-in capital	9,686.0		5,305.6		9,010.9		(14,316.5)		9,686.0
Retained earnings	7,720.4		2,139.9		3,724.3		(5,864.2)		7,720.4
Accumulated other comprehensive income (loss)	(675.2)		748.4		(230.9)		(517.5)		(675.2)
Treasury stock, at cost	(6,508.6)		—		—		—		(6,508.6)
Total stockholders’ equity attributable to PFG	10,227.3		8,196.4		12,504.3		(20,700.7)		10,227.3
Noncontrolling interest	—		—		71.2		(4.7)		66.5
Total stockholders’ equity	10,227.3		8,196.4		12,575.5		(20,705.4)		10,293.8
Total liabilities and stockholders’ equity	$	14,064.0	$	180,203.8	$	66,424.6	$	(32,678.1)	$	228,014.3

(1) PFG sponsors nonqualified benefit plans. Nonqualified benefit plan assets and liabilities held in Rabbi trusts were $570.9 million and $477.3 million, respectively.

Condensed Consolidating Statements of Operations

For the nine months ended September 30, 2017

	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	$	—	$	4,512.5	$	314.3	$	—	$	4,826.8
Fees and other revenues	7.8		1,584.2		1,607.2		(316.4)		2,882.8
Net investment income	7.4		1,883.5		1,836.6		(1,145.7)		2,581.8
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities	—		(119.2)		743.6		(0.7)		623.7
Net other-than-temporary impairment losses on available-for-sale securities	—		(27.8)		0.7		—		(27.1)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified from other comprehensive income	—		(26.1)		(6.4)		—		(32.5)
Net impairment losses on available-for-sale securities	—		(53.9)		(5.7)		—		(59.6)
Net realized capital gains (losses)	—		(173.1)		737.9		(0.7)		564.1
Total revenues	15.2		7,807.1		4,496.0		(1,462.8)		10,855.5
Expenses
Benefits, claims and settlement expenses	—		5,529.9		498.9		(8.1)		6,020.7
Dividends to policyholders	—		92.7		—		—		92.7
Operating expenses	152.1		1,570.2		1,345.8		(263.4)		2,804.7
Total expenses	152.1		7,192.8		1,844.7		(271.5)		8,918.1
Income (loss) before income taxes	(136.9)		614.3		2,651.3		(1,191.3)		1,937.4
Income taxes (benefits)	(57.2)		34.1		481.9		(3.0)		455.8
Equity in the net income (loss) of subsidiaries (1)	1,548.3		566.5		(613.1)		(1,501.7)		—
Net income	1,468.6		1,146.7		1,556.3		(2,690.0)		1,481.6
Net income attributable to noncontrolling interest	—		—		13.0		—		13.0
Net income attributable to PFG	$	1,468.6	$	1,146.7	$	1,543.3	$	(2,690.0)	$	1,468.6
Net income	$	1,468.6	$	1,146.7	$	1,556.3	$	(2,690.0)	$	1,481.6
Other comprehensive income	719.9		495.8		750.1		(1,240.9)		724.9
Comprehensive income	$	2,188.5	$	1,642.5	$	2,306.4	$	(3,930.9)	$	2,206.5

(1) Principal Life Insurance Company Only includes income from discontinued operations of $35.5 million related to its sale of Principal Global Investors, LLC to PFS in connection with a corporate reorganization.

Condensed Consolidating Statements of Operations

For the nine months ended September 30, 2016

	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	$	—	$	3,291.6	$	269.5	$	—	$	3,561.1
Fees and other revenues	—		1,455.6		1,519.3		(287.2)		2,687.7
Net investment income	2.3		1,714.5		1,442.2		(742.0)		2,417.0
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities	—		810.3		(526.4)		—		283.9
Net other-than-temporary impairment losses on available-for-sale securities	—		(75.4)		(5.6)		—		(81.0)
Other-than-temporary impairment losses on fixed  maturities, available-for-sale reclassified to other comprehensive income	—		8.9		2.7		—		11.6
Net impairment losses on available-for-sale securities	—		(66.5)		(2.9)		—		(69.4)
Net realized capital gains (losses)	—		743.8		(529.3)		—		214.5
Total revenues	2.3		7,205.5		2,701.7		(1,029.2)		8,880.3
Expenses
Benefits, claims and settlement expenses	—		4,297.8		511.1		(8.3)		4,800.6
Dividends to policyholders	—		122.3		—		—		122.3
Operating expenses	170.5		1,616.7		1,201.8		(242.0)		2,747.0
Total expenses	170.5		6,036.8		1,712.9		(250.3)		7,669.9
Income (loss) before income taxes	(168.2)		1,168.7		988.8		(778.9)		1,210.4
Income taxes (benefits)	(68.2)		272.2		(15.6)		(1.6)		186.8
Equity in the net income (loss) of subsidiaries (1)	1,098.5		(107.5)		114.2		(1,105.2)		—
Net income	998.5		789.0		1,118.6		(1,882.5)		1,023.6
Net income attributable to noncontrolling interest	—		—		25.1		—		25.1
Net income attributable to PFG	$	998.5	$	789.0	$	1,093.5	$	(1,882.5)	$	998.5
Net income	$	998.5	$	789.0	$	1,118.6	$	(1,882.5)	$	1,023.6
Other comprehensive income	978.6		781.9		1,001.8		(1,773.3)		989.0
Comprehensive income	$	1,977.1	$	1,570.9	$	2,120.4	$	(3,655.8)	$	2,012.6

(1) Principal Life Insurance Company Only includes income from discontinued operations of $94.1 million related to its sale of Principal Global Investors, LLC to PFS in connection with a corporate reorganization.

Condensed Consolidating Statements of Cash Flows

For the nine months ended September 30, 2017

	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	$	(36.7)	$	4,946.3	$	(1,094.7)	$	(186.2)		$	3,628.7
Investing activities
Available-for-sale securities:
Purchases	—		(9,431.3)		(994.4)		—			(10,425.7)
Sales	—		731.7		292.4		(12.9)			1,011.2
Maturities	—		5,964.6		612.6		—			6,577.2
Mortgage loans acquired or originated	—		(2,078.4)		(278.2)		320.1			(2,036.5)
Mortgage loans sold or repaid	—		1,244.6		200.5		(147.7)			1,297.4
Real estate acquired	—		—		(113.6)		—			(113.6)
Real estate sold	—		—		457.1		—			457.1
Net purchases of property and equipment	—		(92.9)		(40.4)		—			(133.3)
Dividends and returns of capital received from unconsolidated entities	250.1		32.0		1,243.5		(1,525.6)			—
Net change in other investments	(4.4)		58.3		(354.2)		348.8			48.5
Net cash provided by (used in) investing activities	245.7		(3,571.4)		1,025.3		(1,017.3)			(3,317.7)
Financing activities
Issuance of common stock	143.1		—		—		—			143.1
Acquisition of treasury stock	(218.1)		—		—		—			(218.1)
Proceeds from financing element derivatives	—		0.1		—		—			0.1
Payments for financing element derivatives	—		(59.5)		—		—			(59.5)
Purchase of subsidiary shares from noncontrolling interest	—		—		(14.6)		1.3			(13.3)
Sale of subsidiary shares to noncontrolling interest	—		—		1.3		(1.3)			—
Dividends to common stockholders	(398.5)		—		—		—			(398.5)
Issuance of long-term debt	—		—		313.5		(313.5)			—
Principal repayments of long-term debt	—		—		(203.8)		147.6			(56.2)
Net proceeds from short-term borrowings	—		—		4.9		—			4.9
Dividends and capital paid to parent	—		(1,243.5)		(282.1)		1,525.6			—
Investment contract deposits	—		7,976.5		267.9		—			8,244.4
Investment contract withdrawals	—		(7,943.1)		(20.0)		—			(7,963.1)
Net increase in banking operation deposits	—		—		79.8		—			79.8
Other	—		0.8		—		—			0.8
Net cash provided by (used in) financing activities	(473.5)		(1,268.7)		146.9		1,359.7			(235.6)
Net increase (decrease) in cash and cash equivalents	(264.5)		106.2		77.5		156.2			75.4
Cash and cash equivalents at beginning of period	882.6		675.1		2,082.8		(920.9		)	2,719.6
Cash and cash equivalents at end of period	$	618.1	$	781.3	$	2,160.3	$	(764.7)		$	2,795.0

Condensed Consolidating Statements of Cash Flows

For the nine months ended September 30, 2016

	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	$	(45.0)	$	2,607.3	$	955.8	$	(590.8)	$	2,927.3
Investing activities
Available-for-sale securities:
Purchases	—		(9,913.5)		(685.5)		9.0		(10,590.0)
Sales	—		718.1		420.0		—		1,138.1
Maturities	—		5,351.3		484.7		—		5,836.0
Mortgage loans acquired or originated	—		(1,958.6)		(215.7)		58.0		(2,116.3)
Mortgage loans sold or repaid	—		1,251.7		202.8		(13.7)		1,440.8
Real estate acquired	—		—		(90.2)		—		(90.2)
Real estate sold	—		3.5		32.0		—		35.5
Net purchases of property and equipment	—		(79.4)		(29.7)		—		(109.1)
Dividends and returns of capital received from unconsolidated entities	795.2		2.3		745.0		(1,542.5)		—
Net change in other investments	(6.8)		386.3		(727.6)		305.7		(42.4)
Net cash provided by (used in) investing activities	788.4		(4,238.3)		135.8		(1,183.5)		(4,497.6)
Financing activities
Issuance of common stock	25.7		—		—		—		25.7
Acquisition of treasury stock	(245.2)		—		—		—		(245.2)
Proceeds from financing element derivatives	—		0.3		—		—		0.3
Payments for financing element derivatives	—		(67.3)		—		—		(67.3)
Excess tax benefits from share-based payment arrangements	0.2		2.2		3.5		—		5.9
Purchase of subsidiary shares from noncontrolling interest	—		—		(3.4)		1.0		(2.4)
Sale of subsidiary shares to noncontrolling interest	—		—		1.0		(1.0)		—
Dividends to common stockholders	(341.1)		—		—		—		(341.1)
Issuance of long-term debt	—		—		62.2		(51.2)		11.0
Principal repayments of long-term debt	—		—		(13.8)		13.8		—
Net repayments of short-term borrowings	—		—		(143.4)		—		(143.4)
Dividends and capital paid to parent	—		(745.0)		(797.5)		1,542.5		—
Investment contract deposits	—		7,894.4		214.1		—		8,108.5
Investment contract withdrawals	—		(6,186.7)		(14.7)		—		(6,201.4)
Net increase in banking operation deposits	—		—		69.6		—		69.6
Other	—		3.3		0.2		—		3.5
Net cash provided by (used in) financing activities	(560.4)		901.2		(622.2)		1,505.1		1,223.7
Net increase (decrease) in cash and cash equivalents	183.0		(729.8)		469.4		(269.2)		(346.6)
Cash and cash equivalents at beginning of period	578.7		1,127.9		1,253.7		(395.5)		2,564.8
Cash and cash equivalents at end of period	$	761.7	$	398.1	$	1,723.1	$	(664.7)	$	2,218.2

Condensed Consolidating Financial Information, Shelf Registration Guarantor (Table)

Condensed Consolidating Statements of Financial Position

September 30, 2017

					Principal Life
	Principal		Principal		Insurance Company				Principal
	Financial		Financial		and Other				Financial
	Group, Inc.		Services, Inc.		Subsidiaries				Group, Inc.
	Parent Only		Only		Combined (1)		Eliminations		Consolidated
					(in millions)
Assets
Fixed maturities, available-for-sale	$	—	$	—	$	59,137.8	$	—	$	59,137.8
Fixed maturities, trading	—		—		232.5		—		232.5
Equity securities, available-for-sale	—		—		118.3		—		118.3
Equity securities, trading	—		5.6		1,665.3		—		1,670.9
Mortgage loans	—		—		14,020.4		—		14,020.4
Real estate	—		—		1,650.2		—		1,650.2
Policy loans	—		—		812.0		—		812.0
Investment in unconsolidated entities	14,631.1		14,855.9		746.2		(29,382.6)		850.6
Other investments	10.4		105.5		2,594.8		—		2,710.7
Cash and cash equivalents	618.1		1,282.0		2,561.4		(1,666.5)		2,795.0
Accrued investment income	—		—		634.6		—		634.6
Premiums due and other receivables	—		0.5		1,944.9		(428.8)		1,516.6
Deferred acquisition costs	—		—		3,481.4		—		3,481.4
Property and equipment	—		—		754.6		—		754.6
Goodwill	—		—		1,055.2		—		1,055.2
Other intangibles	—		—		1,314.7		—		1,314.7
Separate account assets	—		—		154,085.9		—		154,085.9
Other assets	539.9		179.5		1,479.9		(1,107.1)		1,092.2
Total assets	$	15,799.5	$	16,429.0	$	248,290.1	$	(32,585.0)	$	247,933.6
Liabilities
Contractholder funds	$	—	$	—	$	38,208.6	$	—	$	38,208.6
Future policy benefits and claims	—		—		32,129.1		—		32,129.1
Other policyholder funds	—		—		926.2		—		926.2
Short-term debt	—		—		58.8		—		58.8
Long-term debt	3,127.7		429.0		47.7		(429.0)		3,175.4
Income taxes currently payable	—		—		171.5		(117.8)		53.7
Deferred income taxes	—		—		2,511.3		(996.1)		1,515.2
Separate account liabilities	—		—		154,085.9		—		154,085.9
Other liabilities	675.4		1,467.5		5,035.5		(1,594.1)		5,584.3
Total liabilities	3,803.1		1,896.5		233,174.6		(3,137.0)		235,737.2
Redeemable noncontrolling interest	—		—		129.1		—		129.1
Stockholders’ equity
Common stock	4.7		—		11.0		(11.0)		4.7
Additional paid-in capital	9,886.8		9,037.8		11,352.4		(20,390.2)		9,886.8
Retained earnings	8,784.6		5,037.1		3,216.5		(8,253.6)		8,784.6
Accumulated other comprehensive income	47.0		457.6		337.6		(795.2)		47.0
Treasury stock, at cost	(6,726.7)		—		(2.0)		2.0		(6,726.7)
Total stockholders’ equity attributable to PFG	11,996.4		14,532.5		14,915.5		(29,448.0)		11,996.4
Noncontrolling interest	—		—		70.9		—		70.9
Total stockholders’ equity	11,996.4		14,532.5		14,986.4		(29,448.0)		12,067.3
Total liabilities and stockholders’ equity	$	15,799.5	$	16,429.0	$	248,290.1	$	(32,585.0)	$	247,933.6

(1) PFG sponsors nonqualified benefit plans. Nonqualified benefit plan assets and liabilities held in Rabbi trusts were $631.2 million and $532.6 million, respectively.

Condensed Consolidating Statements of Financial Position

December 31, 2016

					Principal Life
	Principal		Principal		Insurance Company				Principal
	Financial		Financial		and Other				Financial
	Group, Inc.		Services, Inc.		Subsidiaries				Group, Inc.
	Parent Only		Only		Combined (1)		Eliminations		Consolidated
					(in millions)
Assets
Fixed maturities, available-for-sale	$	—	$	—	$	54,846.1	$	—	$	54,846.1
Fixed maturities, trading	—		—		398.4		—		398.4
Equity securities, available-for-sale	—		—		98.9		—		98.9
Equity securities, trading	—		—		1,413.4		—		1,413.4
Mortgage loans	—		—		13,230.2		—		13,230.2
Real estate	—		—		1,368.8		—		1,368.8
Policy loans	—		—		823.8		—		823.8
Investment in unconsolidated entities	12,597.9		12,532.4		697.5		(25,054.6)		773.2
Other investments	9.8		135.9		2,737.0		—		2,882.7
Cash and cash equivalents	882.6		1,203.4		2,114.8		(1,481.2)		2,719.6
Accrued investment income	—		0.1		580.5		—		580.6
Premiums due and other receivables	—		0.3		1,503.1		(141.5)		1,361.9
Deferred acquisition costs	—		—		3,380.2		—		3,380.2
Property and equipment	—		—		699.0		—		699.0
Goodwill	—		—		1,020.8		—		1,020.8
Other intangibles	—		—		1,325.3		—		1,325.3
Separate account assets	—		—		139,832.6		—		139,832.6
Other assets	573.7		185.6		1,200.9		(701.4)		1,258.8
Total assets	$	14,064.0	$	14,057.7	$	227,271.3	$	(27,378.7)	$	228,014.3
Liabilities
Contractholder funds	$	—	$	—	$	37,953.6	$	—	$	37,953.6
Future policy benefits and claims	—		—		29,000.7		—		29,000.7
Other policyholder funds	—		—		890.4		—		890.4
Short-term debt	—		—		127.9		(76.5)		51.4
Long-term debt	3,126.4		142.1		(0.8)		(142.0)		3,125.7
Income taxes currently payable	—		—		68.3		(55.4)		12.9
Deferred income taxes	—		—		1,619.3		(646.9)		972.4
Separate account liabilities	—		—		139,832.6		—		139,832.6
Other liabilities	710.3		1,411.3		4,962.1		(1,300.4)		5,783.3
Total liabilities	3,836.7		1,553.4		214,454.1		(2,221.2)		217,623.0
Redeemable noncontrolling interest	—		—		97.5		—		97.5
Stockholders’ equity
Common stock	4.7		—		17.8		(17.8)		4.7
Additional paid-in capital	9,686.0		9,010.9		10,045.9		(19,056.8)		9,686.0
Retained earnings	7,720.4		3,724.3		2,940.2		(6,664.5)		7,720.4
Accumulated other comprehensive loss	(675.2)		(230.9)		(348.7)		579.6		(675.2)
Treasury stock, at cost	(6,508.6)		—		(2.0)		2.0		(6,508.6)
Total stockholders’ equity attributable to PFG	10,227.3		12,504.3		12,653.2		(25,157.5)		10,227.3
Noncontrolling interest	—		—		66.5		—		66.5
Total stockholders’ equity	10,227.3		12,504.3		12,719.7		(25,157.5)		10,293.8
Total liabilities and stockholders’ equity	$	14,064.0	$	14,057.7	$	227,271.3	$	(27,378.7)	$	228,014.3

(1) PFG sponsors nonqualified benefit plans. Nonqualified benefit plan assets and liabilities held in Rabbi trusts were $570.9 million and $477.3 million, respectively.

Condensed Consolidating Statements of Operations

For the nine months ended September 30, 2017

					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	$	—	$	—	$	4,826.8	$	—	$	4,826.8
Fees and other revenues	7.8		0.2		2,881.9		(7.1)		2,882.8
Net investment income (loss)	7.4		(2.0)		2,572.0		4.4		2,581.8
Net realized capital gains, excluding impairment losses on available-for-sale securities	—		4.5		619.2		—		623.7
Net other-than-temporary impairment losses on available-for-sale securities	—		—		(27.1)		—		(27.1)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified from other comprehensive income	—		—		(32.5)		—		(32.5)
Net impairment losses on available-for-sale securities	—		—		(59.6)		—		(59.6)
Net realized capital gains	—		4.5		559.6		—		564.1
Total revenues	15.2		2.7		10,840.3		(2.7)		10,855.5
Expenses
Benefits, claims and settlement expenses	—		—		6,020.7		—		6,020.7
Dividends to policyholders	—		—		92.7		—		92.7
Operating expenses	152.1		38.5		2,620.6		(6.5)		2,804.7
Total expenses	152.1		38.5		8,734.0		(6.5)		8,918.1
Income (loss) before income taxes	(136.9)		(35.8)		2,106.3		3.8		1,937.4
Income taxes (benefits)	(57.2)		(15.3)		529.5		(1.2)		455.8
Equity in the net income of subsidiaries	1,548.3		1,563.8		—		(3,112.1)		—
Net income	1,468.6		1,543.3		1,576.8		(3,107.1)		1,481.6
Net income attributable to noncontrolling interest	—		—		13.0		—		13.0
Net income attributable to PFG	$	1,468.6	$	1,543.3	$	1,563.8	$	(3,107.1)	$	1,468.6
Net income	$	1,468.6	$	1,543.3	$	1,576.8	$	(3,107.1)	$	1,481.6
Other comprehensive income	719.9		686.1		688.9		(1,370.0)		724.9
Comprehensive income	$	2,188.5	$	2,229.4	$	2,265.7	$	(4,477.1)	$	2,206.5

Condensed Consolidating Statements of Operations

For the nine months ended September 30, 2016

					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	$	—	$	—	$	3,561.1	$	—	$	3,561.1
Fees and other revenues	—		0.6		2,693.1		(6.0)		2,687.7
Net investment income	2.3		17.9		2,391.6		5.2		2,417.0
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities	—		(5.6)		289.5		—		283.9
Net other-than-temporary impairment losses on available-for-sale securities	—		—		(81.0)		—		(81.0)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to other comprehensive income	—		—		11.6		—		11.6
Net impairment losses on available-for-sale securities	—		—		(69.4)		—		(69.4)
Net realized capital gains (losses)	—		(5.6)		220.1		—		214.5
Total revenues	2.3		12.9		8,865.9		(0.8)		8,880.3
Expenses
Benefits, claims and settlement expenses	—		—		4,800.6		—		4,800.6
Dividends to policyholders	—		—		122.3		—		122.3
Operating expenses	170.5		7.6		2,574.7		(5.8)		2,747.0
Total expenses	170.5		7.6		7,497.6		(5.8)		7,669.9
Income (loss) before income taxes	(168.2)		5.3		1,368.3		5.0		1,210.4
Income taxes (benefits)	(68.2)		(22.0)		277.0		—		186.8
Equity in the net income of subsidiaries	1,098.5		1,066.2		—		(2,164.7)		—
Net income	998.5		1,093.5		1,091.3		(2,159.7)		1,023.6
Net income attributable to noncontrolling interest	—		—		25.1		—		25.1
Net income attributable to PFG	$	998.5	$	1,093.5	$	1,066.2	$	(2,159.7)	$	998.5
Net income	$	998.5	$	1,093.5	$	1,091.3	$	(2,159.7)	$	1,023.6
Other comprehensive income	978.6		942.1		969.3		(1,901.0)		989.0
Comprehensive income	$	1,977.1	$	2,035.6	$	2,060.6	$	(4,060.7)	$	2,012.6

Condensed Consolidating Statements of Cash Flows

For the nine months ended September 30, 2017

					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	$	(36.7)	$	449.3	$	3,721.0	$	(504.9)	$	3,628.7
Investing activities
Available-for-sale securities:
Purchases	—		—		(10,425.7)		—		(10,425.7)
Sales	—		—		1,011.2		—		1,011.2
Maturities	—		—		6,577.2		—		6,577.2
Mortgage loans acquired or originated	—		—		(2,036.5)		—		(2,036.5)
Mortgage loans sold or repaid	—		—		1,297.4		—		1,297.4
Real estate acquired	—		—		(113.6)		—		(113.6)
Real estate sold	—		—		457.1		—		457.1
Net purchases of property and equipment	—		—		(133.3)		—		(133.3)
Dividends and returns of capital received from (contributed to) unconsolidated entities	250.1		(37.0)		—		(213.1)		—
Net change in other investments	(4.4)		(70.5)		(106.6)		230.0		48.5
Net cash provided by (used in) investing activities	245.7		(107.5)		(3,472.8)		16.9		(3,317.7)
Financing activities
Issuance of common stock	143.1		—		—		—		143.1
Acquisition of treasury stock	(218.1)		—		—		—		(218.1)
Proceeds from financing element derivatives	—		—		0.1		—		0.1
Payments for financing element derivatives	—		—		(59.5)		—		(59.5)
Purchase of subsidiary shares from noncontrolling interest	—		—		(13.3)		—		(13.3)
Dividends to common stockholders	(398.5)		—		—		—		(398.5)
Issuance of long-term debt	—		6.4		—		(6.4)		—
Principal repayments of long-term debt	—		(19.5)		(56.2)		19.5		(56.2)
Net proceeds from (repayments of) short-term borrowings	—		—		(71.6)		76.5		4.9
Capital received from (dividends and capital paid to) parent	—		(250.1)		37.0		213.1		—
Investment contract deposits	—		—		8,244.4		—		8,244.4
Investment contract withdrawals	—		—		(7,963.1)		—		(7,963.1)
Net increase in banking operation deposits	—		—		79.8		—		79.8
Other	—		—		0.8		—		0.8
Net cash provided by (used in) financing activities	(473.5)		(263.2)		198.4		302.7		(235.6)
Net increase (decrease) in cash and cash equivalents	(264.5)		78.6		446.6		(185.3)		75.4
Cash and cash equivalents at beginning of period	882.6		1,203.4		2,114.8		(1,481.2)		2,719.6
Cash and cash equivalents at end of period	$	618.1	$	1,282.0	$	2,561.4	$	(1,666.5)	$	2,795.0

Condensed Consolidating Statements of Cash Flows

For the nine months ended September 30, 2016

					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	$	(45.0)	$	(2.5)	$	2,849.7	$	125.1	$	2,927.3
Investing activities
Available-for-sale securities:
Purchases	—		—		(10,590.0)		—		(10,590.0)
Sales	—		—		1,138.1		—		1,138.1
Maturities	—		—		5,836.0		—		5,836.0
Mortgage loans acquired or originated	—		—		(2,116.3)		—		(2,116.3)
Mortgage loans sold or repaid	—		—		1,440.8		—		1,440.8
Real estate acquired	—		—		(90.2)		—		(90.2)
Real estate sold	—		—		35.5		—		35.5
Net purchases of property and equipment	—		—		(109.1)		—		(109.1)
Dividends and returns of capital received from unconsolidated entities	795.2		886.0		—		(1,681.2)		—
Net change in other investments	(6.8)		220.3		121.2		(377.1)		(42.4)
Net cash provided by (used in) investing activities	788.4		1,106.3		(4,334.0)		(2,058.3)		(4,497.6)
Financing activities
Issuance of common stock	25.7		—		—		—		25.7
Acquisition of treasury stock	(245.2)		—		—		—		(245.2)
Proceeds from financing element derivatives	—		—		0.3		—		0.3
Payments for financing element derivatives	—		—		(67.3)		—		(67.3)
Excess tax benefits from share-based payment arrangements	0.2		—		5.7		—		5.9
Purchase of subsidiary shares from noncontrolling interest	—		—		(2.4)		—		(2.4)
Dividends to common stockholders	(341.1)		—		—		—		(341.1)
Issuance of long-term debt	—		5.0		78.0		(72.0)		11.0
Principal repayments of long-term debt	—		(20.0)		—		20.0		—
Net repayments of short-term borrowings	—		—		(166.0)		22.6		(143.4)
Dividends and capital paid to parent	—		(795.2)		(886.0)		1,681.2		—
Investment contract deposits	—		—		8,108.5		—		8,108.5
Investment contract withdrawals	—		—		(6,201.4)		—		(6,201.4)
Net increase in banking operation deposits	—		—		69.6		—		69.6
Other	—		—		3.5		—		3.5
Net cash provided by (used in) financing activities	(560.4)		(810.2)		942.5		1,651.8		1,223.7
Net increase (decrease) in cash and cash equivalents	183.0		293.6		(541.8)		(281.4)		(346.6)
Cash and cash equivalents at beginning of period	578.7		730.5		2,413.3		(1,157.7)		2,564.8
Cash and cash equivalents at end of period	$	761.7	$	1,024.1	$	1,871.5	$	(1,439.1)	$	2,218.2