Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

Segment Information

Reconciliation of Assets from Segment to Consolidated (Table)

	December 31, 2019		December 31, 2018
	(in millions)
Assets:
Retirement and Income Solutions	$	192,698.1	$	163,833.6
Principal Global Investors		2,363.3		2,301.0
Principal International		48,857.6		46,701.2
U.S. Insurance Solutions		28,669.6		25,388.2
Corporate		3,499.2		4,812.1
Total consolidated assets	$	276,087.8	$	243,036.1

Reconciliation of Operating Revenues and Pre-tax Operating Earnings (Losses) by Segment (Table)

	For the year ended December 31,
	2019		2018		2017
	(in millions)
Operating revenues by segment:
Retirement and Income Solutions:
Retirement and Income Solutions – Fee	$	2,003.0	$	1,783.7	$	1,776.4
Retirement and Income Solutions – Spread		6,951.4		5,493.3		5,378.3
Total Retirement and Income Solutions (1)		8,954.4		7,277.0		7,154.7
Principal Global Investors (2)		1,505.8		1,736.3		1,444.4
Principal International		1,523.2		1,372.9		1,251.5
U.S. Insurance Solutions:
Specialty Benefits insurance		2,493.6		2,326.4		2,168.4
Individual Life insurance		1,955.6		1,763.6		1,745.3
Eliminations		(0.2)		(0.2)		(0.2)
Total U.S. Insurance Solutions		4,449.0		4,089.8		3,913.5
Corporate		(39.3)		(51.2)		(60.8)
Total segment operating revenues		16,393.1		14,424.8		13,703.3
Net realized capital gains (losses), net of related revenue adjustments		(98.5)		(132.3)		472.2
Adjustments related to equity method investments		(72.5)		(55.3)		(82.3)
Total revenues per consolidated statements of operations	$	16,222.1	$	14,237.2	$	14,093.2
Pre-tax operating earnings (losses) by segment:
Retirement and Income Solutions	$	874.0	$	922.2	$	938.5
Principal Global Investors		483.3		562.1		481.3
Principal International		390.7		272.6		346.2
U.S. Insurance Solutions		521.6		467.0		412.8
Corporate		(380.3)		(269.4)		(305.1)
Total segment pre-tax operating earnings		1,889.3		1,954.5		1,873.7
Pre-tax net realized capital gains (losses), as adjusted (3)		(140.9)		(126.4)		520.3
Pre-tax other adjustments (4)		—		—		(70.0)
Adjustments related to equity method investments and noncontrolling interest		(55.1)		(43.7)		(71.8)
Income before income taxes per consolidated statements of operations	$	1,693.3	$	1,784.4	$	2,252.2

(1) Reflects inter-segment revenues of $357.8 million, $393.6 million and $402.8 million for the years ended December 31, 2019, 2018 and 2017, respectively.

(2) Reflects inter-segment revenues of $264.9 million, $262.8 million and $250.9 million for the years ended December 31, 2019, 2018 and 2017, respectively.

(3) Pre-tax net realized capital gains (losses), as adjusted, is derived as follows:

16. Segment Information – (continued)

	For the year ended December 31,
	2019		2018		2017
	(in millions)
Net realized capital gains (losses)	$	(52.8)	$	(75.4)	$	524.2
Derivative and hedging-related revenue adjustments		(80.4)		(64.9)		(59.4)
Market value adjustments to fee revenues		—		0.1		(0.1)
Adjustments related to equity method investments		2.6		(5.4)		1.4
Adjustments related to sponsored investment funds		23.6		12.9		6.3
Recognition of front-end fee revenue		8.5		0.4		(0.2)
Net realized capital gains (losses), net of related revenue adjustments		(98.5)		(132.3)		472.2
Amortization of deferred acquisition costs and other actuarial balances		(40.8)		(27.0)		55.0
Capital (gains) losses distributed		(68.2)		14.4		(55.0)
Market value adjustments of embedded derivatives		66.6		18.5		48.1
Pre-tax net realized capital gains (losses), as adjusted (a)	$	(140.9)	$	(126.4)	$	520.3

(a) As adjusted before noncontrolling interest capital gains (losses).

(4) For the year ended December 31, 2017, pre-tax other adjustments included the negative effect of a contribution to The Principal Financial Group Foundation, Inc.

Reconciliation of Other Significant Reconciling Items from Segments to Consolidated (Table)

	For the year ended December 31,
	2019		2018		2017
	(in millions)
Income tax expense (benefit) by segment:
Retirement and Income Solutions	$	71.8	$	85.6	$	123.0
Principal Global Investors		121.8		149.1		186.0
Principal International		106.8		73.3		87.5
U.S. Insurance Solutions		101.8		85.7		134.0
Corporate		(82.0)		(36.7)		(135.4)
Total segment income taxes from operating earnings		320.2		357.0		395.1
Tax expense (benefit) related to net realized capital losses, as adjusted		1.3		(71.4)		209.1
Tax benefit related to other after-tax adjustments (1)		—		—		(594.5)
Certain adjustments related to equity method investments and noncontrolling interest		(72.3)		(54.9)		(82.0)
Total income taxes per consolidated statements of operations	$	249.2	$	230.7	$	(72.3)

(1) The 2017 tax benefit includes $568.3 million associated with the U.S. tax reform.

Reconciliation of Depreciation and Amortization Expense from Segments to Consolidated (Table)

	For the year ended December 31,
	2019		2018		2017
	(in millions)
Depreciation and amortization expense by segment:
Retirement and Income Solutions	$	48.2	$	32.5	$	30.6
Principal Global Investors		18.9		21.9		19.8
Principal International		58.6		59.6		53.1
U.S. Insurance Solutions		25.0		26.2		28.1
Corporate		16.1		10.8		8.2
Total depreciation and amortization expense included in our consolidated statements of operations	$	166.8	$	151.0	$	139.8