EX-12 2 a18-8536_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,

 

 

 

 

2018

 

2017

 

2017

 

2016

 

2015

 

2014

 

2013

 

 

 

 

(in millions)

 

1.

Income from continuing operations before income taxes

 

$

457.0

 

$

414.0

 

$

2,252.2

 

$

1,591.7

 

$

1,430.8

 

$

1,494.9

 

$

1,124.0

 

2.

Interest expense

 

37.7

 

37.0

 

152.3

 

165.8

 

178.5

 

135.5

 

143.4

 

3.

Interest factor of rental expense

 

1.8

 

1.3

 

7.1

 

5.4

 

4.9

 

5.9

 

5.7

 

4.

Undistributed income from equity investees

 

(36.9)

 

(44.1)

 

(127.5)

 

(142.2)

 

(106.3)

 

(113.9)

 

(107.3)

 

5.

Earnings before interest credited on investment products

 

459.6

 

408.2

 

2,284.1

 

1,620.7

 

1,507.9

 

1,522.4

 

1,165.8

 

6.

Interest credited on investment products

 

51.2

 

44.0

 

187.9

 

173.9

 

152.0

 

189.6

 

256.6

 

7.

Earnings

 

$

510.8

 

$

452.2

 

$

2,472.0

 

$

1,794.6

 

$

1,659.9

 

$

1,712.0

 

$

1,422.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.

Interest expense

 

$

37.7

 

$

37.0

 

$

152.3

 

$

165.8

 

$

178.5

 

$

135.5

 

$

143.4

 

9.

Interest factor of rental expense

 

1.8

 

1.3

 

7.1

 

5.4

 

4.9

 

5.9

 

5.7

 

10.

Preferred stock dividends by registrant

 

—

 

—

 

—

 

—

 

16.5

 

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

 

39.5

 

38.3

 

159.4

 

171.2

 

208.1

 

174.4

 

182.1

 

13.

Interest credited on investment products

 

51.2

 

44.0

 

187.9

 

173.9

 

152.0

 

189.6

 

256.6

 

14.

Fixed charges

 

$

90.7

 

$

82.3

 

$

347.3

 

$

345.1

 

$

360.1

 

$

364.0

 

$

438.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15.

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

 

11.6

 

10.7

 

14.3

 

9.5

 

7.2

 

8.7

 

6.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16.

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

 

5.6

 

5.5

 

7.1

 

5.2

 

4.6

 

4.7

 

3.2

 

 

128