UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2013
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
1-16725
(Commission file number)
PRINCIPAL FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
|
Delaware |
|
42-1520346 |
|
(State or other jurisdiction of incorporation or organization) |
|
(I.R.S. Employer Identification Number) |
711 High Street, Des Moines, Iowa 50392
(Address of principal executive offices)
(515) 247-5111
(Registrant’s telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
|
Large accelerated filer x |
|
Accelerated filer o |
|
Non-accelerated filer o |
|
Smaller reporting company o |
|
|
|
|
|
(Do not check if a smaller |
|
|
|
|
|
|
|
reporting company) |
|
|
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
The total number of shares of the registrant’s Common Stock, $0.01 par value, outstanding as of April 24, 2013, was 293,420,211.
PRINCIPAL FINANCIAL GROUP, INC.
PART I — FINANCIAL INFORMATION
Principal Financial Group, Inc.
Consolidated Statements of Financial Position
|
|
|
March 31, 2013 |
|
December 31, |
| ||
|
|
|
(Unaudited) |
|
(As adjusted) |
| ||
|
|
|
(in millions) |
| ||||
|
Assets |
|
|
|
|
| ||
|
Fixed maturities, available-for-sale (2013 and 2012 include $220.3 million and $194.6 million related to consolidated variable interest entities) |
|
$ |
51,084.1 |
|
$ |
50,939.3 |
|
|
Fixed maturities, trading (2013 and 2012 both include $110.4 million related to consolidated variable interest entities) |
|
628.9 |
|
626.7 |
| ||
|
Equity securities, available-for-sale |
|
147.0 |
|
136.5 |
| ||
|
Equity securities, trading |
|
732.2 |
|
252.8 |
| ||
|
Mortgage loans |
|
11,577.9 |
|
11,519.7 |
| ||
|
Real estate |
|
1,202.0 |
|
1,180.3 |
| ||
|
Policy loans |
|
866.5 |
|
864.9 |
| ||
|
Other investments (2013 and 2012 include $77.2 million and $80.3 million related to consolidated variable interest entities and $110.9 million and $113.9 million measured at fair value under the fair value option) |
|
3,187.2 |
|
3,291.1 |
| ||
|
Total investments |
|
69,425.8 |
|
68,811.3 |
| ||
|
Cash and cash equivalents |
|
1,661.2 |
|
4,177.2 |
| ||
|
Accrued investment income |
|
584.5 |
|
584.4 |
| ||
|
Premiums due and other receivables |
|
1,175.2 |
|
1,084.4 |
| ||
|
Deferred acquisition costs |
|
2,715.5 |
|
2,590.0 |
| ||
|
Property and equipment |
|
472.6 |
|
464.2 |
| ||
|
Goodwill |
|
1,197.4 |
|
543.4 |
| ||
|
Other intangibles |
|
1,590.3 |
|
914.7 |
| ||
|
Separate account assets (2013 includes $33,892.2 million related to consolidated variable interest entities) |
|
120,906.1 |
|
81,653.8 |
| ||
|
Other assets |
|
1,034.3 |
|
1,006.8 |
| ||
|
Total assets |
|
$ |
200,762.9 |
|
$ |
161,830.2 |
|
|
Liabilities |
|
|
|
|
| ||
|
Contractholder funds |
|
$ |
36,701.6 |
|
$ |
37,786.5 |
|
|
Future policy benefits and claims |
|
22,689.5 |
|
22,436.2 |
| ||
|
Other policyholder funds |
|
811.2 |
|
716.4 |
| ||
|
Short-term debt |
|
46.5 |
|
40.8 |
| ||
|
Long-term debt |
|
2,790.5 |
|
2,671.3 |
| ||
|
Income taxes currently payable |
|
9.8 |
|
15.3 |
| ||
|
Deferred income taxes |
|
791.4 |
|
600.0 |
| ||
|
Separate account liabilities (2013 includes $33,892.2 million related to consolidated variable interest entities) |
|
120,906.1 |
|
81,653.8 |
| ||
|
Other liabilities (2013 and 2012 include $318.3 million and $302.9 million related to consolidated variable interest entities, of which $96.5 million and $85.0 million are measured at fair value under the fair value option) |
|
6,130.8 |
|
6,146.1 |
| ||
|
Total liabilities |
|
190,877.4 |
|
152,066.4 |
| ||
|
|
|
|
|
|
| ||
|
Redeemable noncontrolling interest |
|
58.9 |
|
60.4 |
| ||
|
|
|
|
|
|
| ||
|
Stockholders’ equity |
|
|
|
|
| ||
|
Series A preferred stock, par value $.01 per share with liquidation preference of $100 per share — 3.0 million shares authorized, issued and outstanding in 2013 and 2012 |
|
— |
|
— |
| ||
|
Series B preferred stock, par value $.01 per share with liquidation preference of $25 per share — 10.0 million shares authorized, issued and outstanding in 2013 and 2012 |
|
0.1 |
|
0.1 |
| ||
|
Common stock, par value $.01 per share — 2,500.0 million shares authorized, 455.9 million and 453.5 million shares issued, and 293.3 million and 293.8 million shares outstanding in 2013 and 2012 |
|
4.6 |
|
4.5 |
| ||
|
Additional paid-in capital |
|
9,771.5 |
|
9,730.9 |
| ||
|
Retained earnings |
|
4,971.7 |
|
4,862.0 |
| ||
|
Accumulated other comprehensive income |
|
621.0 |
|
640.3 |
| ||
|
Treasury stock, at cost (162.6 million and 159.7 million shares in 2013 and 2012) |
|
(5,645.3 |
) |
(5,554.4 |
) | ||
|
Total stockholders’ equity attributable to Principal Financial Group, Inc. |
|
9,723.6 |
|
9,683.4 |
| ||
|
Noncontrolling interest |
|
103.0 |
|
20.0 |
| ||
|
Total stockholders’ equity |
|
9,826.6 |
|
9,703.4 |
| ||
|
Total liabilities and stockholders’ equity |
|
$ |
200,762.9 |
|
$ |
161,830.2 |
|
See accompanying notes.
Principal Financial Group, Inc.
Consolidated Statements of Operations
(Unaudited)
|
|
|
For the three months ended |
| ||||
|
|
|
March 31, |
| ||||
|
|
|
2013 |
|
2012 |
| ||
|
|
|
(in millions, except per share data) |
| ||||
|
Revenues |
|
|
|
|
| ||
|
Premiums and other considerations |
|
$ |
694.7 |
|
$ |
679.8 |
|
|
Fees and other revenues |
|
733.6 |
|
598.0 |
| ||
|
Net investment income |
|
789.3 |
|
824.8 |
| ||
|
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities |
|
(26.4 |
) |
22.1 |
| ||
|
Total other-than-temporary impairment losses on available-for-sale securities |
|
(44.7 |
) |
(33.7 |
) | ||
|
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to other comprehensive income |
|
20.2 |
|
4.9 |
| ||
|
Net impairment losses on available-for-sale securities |
|
(24.5 |
) |
(28.8 |
) | ||
|
Net realized capital losses |
|
(50.9 |
) |
(6.7 |
) | ||
|
Total revenues |
|
2,166.7 |
|
2,095.9 |
| ||
|
Expenses |
|
|
|
|
| ||
|
Benefits, claims and settlement expenses |
|
1,094.5 |
|
1,212.5 |
| ||
|
Dividends to policyholders |
|
48.3 |
|
50.3 |
| ||
|
Operating expenses |
|
795.7 |
|
555.1 |
| ||
|
Total expenses |
|
1,938.5 |
|
1,817.9 |
| ||
|
Income before income taxes |
|
228.2 |
|
278.0 |
| ||
|
Income taxes |
|
38.2 |
|
56.7 |
| ||
|
Net income |
|
190.0 |
|
221.3 |
| ||
|
Net income attributable to noncontrolling interest |
|
3.5 |
|
9.2 |
| ||
|
Net income attributable to Principal Financial Group, Inc. |
|
186.5 |
|
212.1 |
| ||
|
Preferred stock dividends |
|
8.2 |
|
8.2 |
| ||
|
Net income available to common stockholders |
|
$ |
178.3 |
|
$ |
203.9 |
|
|
|
|
|
|
|
| ||
|
Earnings per common share |
|
|
|
|
| ||
|
Basic earnings per common share |
|
$ |
0.61 |
|
$ |
0.68 |
|
|
|
|
|
|
|
| ||
|
Diluted earnings per common share |
|
$ |
0.61 |
|
$ |
0.68 |
|
See accompanying notes.
Principal Financial Group, Inc.
Consolidated Statements of Comprehensive Income
(Unaudited)
|
|
|
For the three months ended |
| ||||
|
|
|
March 31, |
| ||||
|
|
|
2013 |
|
2012 |
| ||
|
|
|
(in millions) |
| ||||
|
|
|
|
|
|
| ||
|
Net income |
|
$ |
190.0 |
|
$ |
221.3 |
|
|
Other comprehensive income (loss), net: |
|
|
|
|
| ||
|
Net unrealized gains (losses) on available-for-sale securities |
|
(99.3 |
) |
161.3 |
| ||
|
Noncredit component of impairment losses on fixed maturities, available-for-sale |
|
(11.3 |
) |
(0.9 |
) | ||
|
Net unrealized gains (losses) on derivative instruments |
|
22.0 |
|
(3.5 |
) | ||
|
Foreign currency translation adjustment |
|
54.4 |
|
59.6 |
| ||
|
Net unrecognized postretirement benefit obligation |
|
13.8 |
|
8.7 |
| ||
|
Other comprehensive income (loss) |
|
(20.4 |
) |
225.2 |
| ||
|
Comprehensive income |
|
169.6 |
|
446.5 |
| ||
|
Comprehensive income attributable to noncontrolling interest |
|
2.4 |
|
10.0 |
| ||
|
Comprehensive income attributable to Principal Financial Group, Inc. |
|
$ |
167.2 |
|
$ |
436.5 |
|
See accompanying notes.
Principal Financial Group, Inc.
Consolidated Statements of Stockholders’ Equity
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
| |||||||||
|
|
|
Series A |
|
Series B |
|
|
|
Additional |
|
|
|
other |
|
|
|
|
|
Total |
| |||||||||
|
|
|
preferred |
|
preferred |
|
Common |
|
paid-in |
|
Retained |
|
comprehensive |
|
Treasury |
|
Noncontrolling |
|
stockholders’ |
| |||||||||
|
|
|
stock |
|
stock |
|
stock |
|
capital |
|
earnings |
|
income |
|
stock |
|
interest |
|
equity |
| |||||||||
|
|
|
(in millions) |
| |||||||||||||||||||||||||
|
Balances at January 1, 2012 (as adjusted) |
|
$ |
— |
|
$ |
0.1 |
|
$ |
4.5 |
|
$ |
9,634.7 |
|
$ |
4,323.4 |
|
$ |
271.4 |
|
$ |
(5,281.7 |
) |
$ |
353.8 |
|
$ |
9,306.2 |
|
|
Common stock issued |
|
— |
|
— |
|
— |
|
9.1 |
|
— |
|
— |
|
— |
|
— |
|
9.1 |
| |||||||||
|
Stock-based compensation and additional related tax benefits |
|
— |
|
— |
|
— |
|
25.8 |
|
(1.0 |
) |
— |
|
— |
|
— |
|
24.8 |
| |||||||||
|
Treasury stock acquired, common |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(64.2 |
) |
— |
|
(64.2 |
) | |||||||||
|
Dividends to common stockholders |
|
— |
|
— |
|
— |
|
— |
|
(54.3 |
) |
— |
|
— |
|
— |
|
(54.3 |
) | |||||||||
|
Dividends to preferred stockholders |
|
— |
|
— |
|
— |
|
— |
|
(8.2 |
) |
— |
|
— |
|
— |
|
(8.2 |
) | |||||||||
|
Distributions to noncontrolling interest |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(3.2 |
) |
(3.2 |
) | |||||||||
|
Contributions from noncontrolling interest |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
4.2 |
|
4.2 |
| |||||||||
|
Net income (excludes $0.2 million attributable to redeemable noncontrolling interest) |
|
— |
|
— |
|
— |
|
— |
|
212.1 |
|
— |
|
— |
|
9.0 |
|
221.1 |
| |||||||||
|
Other comprehensive income (excludes $0.7 million attributable to redeemable noncontrolling interest) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
224.4 |
|
— |
|
0.1 |
|
224.5 |
| |||||||||
|
Balances at March 31, 2012 |
|
$ |
— |
|
$ |
0.1 |
|
$ |
4.5 |
|
$ |
9,669.6 |
|
$ |
4,472.0 |
|
$ |
495.8 |
|
$ |
(5,345.9 |
) |
$ |
363.9 |
|
$ |
9,660.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
Balances at January 1, 2013 |
|
$ |
— |
|
$ |
0.1 |
|
$ |
4.5 |
|
$ |
9,730.9 |
|
$ |
4,862.0 |
|
$ |
640.3 |
|
$ |
(5,554.4 |
) |
$ |
20.0 |
|
$ |
9,703.4 |
|
|
Common stock issued |
|
— |
|
— |
|
0.1 |
|
20.2 |
|
— |
|
— |
|
— |
|
— |
|
20.3 |
| |||||||||
|
Stock-based compensation and additional related tax benefits |
|
— |
|
— |
|
— |
|
20.4 |
|
(1.0 |
) |
— |
|
— |
|
— |
|
19.4 |
| |||||||||
|
Treasury stock acquired, common |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(90.9 |
) |
— |
|
(90.9 |
) | |||||||||
|
Dividends to common stockholders |
|
— |
|
— |
|
— |
|
— |
|
(67.6 |
) |
— |
|
— |
|
— |
|
(67.6 |
) | |||||||||
|
Dividends to preferred stockholders |
|
— |
|
— |
|
— |
|
— |
|
(8.2 |
) |
— |
|
— |
|
— |
|
(8.2 |
) | |||||||||
|
Distributions to noncontrolling interest |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(3.6 |
) |
(3.6 |
) | |||||||||
|
Contributions from noncontrolling interest |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
113.9 |
|
113.9 |
| |||||||||
|
Purchase of subsidiary shares from noncontrolling interest |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(30.6 |
) |
(30.6 |
) | |||||||||
|
Net income (excludes $0.1 million attributable to redeemable noncontrolling interest) |
|
— |
|
— |
|
— |
|
— |
|
186.5 |
|
— |
|
— |
|
3.4 |
|
189.9 |
| |||||||||
|
Other comprehensive loss (excludes $(1.0) million attributable to redeemable noncontrolling interest) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(19.3 |
) |
— |
|
(0.1 |
) |
(19.4 |
) | |||||||||
|
Balances at March 31, 2013 |
|
$ |
— |
|
$ |
0.1 |
|
$ |
4.6 |
|
$ |
9,771.5 |
|
$ |
4,971.7 |
|
$ |
621.0 |
|
$ |
(5,645.3 |
) |
$ |
103.0 |
|
$ |
9,826.6 |
|
See accompanying notes.
Principal Financial Group, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
For the three months ended |
| ||||
|
|
|
March 31, |
| ||||
|
|
|
2013 |
|
2012 |
| ||
|
|
|
(in millions) |
| ||||
|
Operating activities |
|
|
|
|
| ||
|
Net income |
|
$ |
190.0 |
|
$ |
221.3 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
| ||
|
Amortization of deferred acquisition costs |
|
55.6 |
|
(129.3 |
) | ||
|
Additions to deferred acquisition costs |
|
(124.2 |
) |
(99.6 |
) | ||
|
Accrued investment income |
|
(0.1 |
) |
(7.3 |
) | ||
|
Net cash flows for trading securities |
|
(122.1 |
) |
7.0 |
| ||
|
Premiums due and other receivables |
|
8.7 |
|
97.3 |
| ||
|
Contractholder and policyholder liabilities and dividends |
|
133.1 |
|
521.9 |
| ||
|
Current and deferred income taxes (benefits) |
|
136.5 |
|
(32.6 |
) | ||
|
Net realized capital losses |
|
50.9 |
|
6.7 |
| ||
|
Depreciation and amortization expense |
|
34.9 |
|
32.8 |
| ||
|
Mortgage loans held for sale, acquired or originated |
|
— |
|
(22.0 |
) | ||
|
Mortgage loans held for sale, sold or repaid, net of gain |
|
— |
|
24.0 |
| ||
|
Real estate acquired through operating activities |
|
(16.7 |
) |
(2.9 |
) | ||
|
Real estate sold through operating activities |
|
10.2 |
|
1.2 |
| ||
|
Stock-based compensation |
|
19.4 |
|
25.1 |
| ||
|
Other |
|
219.7 |
|
258.1 |
| ||
|
Net adjustments |
|
405.9 |
|
680.4 |
| ||
|
Net cash provided by operating activities |
|
595.9 |
|
901.7 |
| ||
|
Investing activities |
|
|
|
|
| ||
|
Available-for-sale securities: |
|
|
|
|
| ||
|
Purchases |
|
(2,447.1 |
) |
(2,060.5 |
) | ||
|
Sales |
|
503.1 |
|
428.5 |
| ||
|
Maturities |
|
1,790.9 |
|
1,612.1 |
| ||
|
Mortgage loans acquired or originated |
|
(610.9 |
) |
(919.6 |
) | ||
|
Mortgage loans sold or repaid |
|
555.8 |
|
361.4 |
| ||
|
Real estate acquired |
|
(23.4 |
) |
(21.3 |
) | ||
|
Net (purchases) sales of property and equipment |
|
6.7 |
|
(17.3 |
) | ||
|
Purchase of interests in subsidiaries, net of cash acquired |
|
(1,268.3 |
) |
— |
| ||
|
Net change in other investments |
|
(32.2 |
) |
(73.8 |
) | ||
|
Net cash used in investing activities |
|
(1,525.4 |
) |
(690.5 |
) | ||
|
Financing activities |
|
|
|
|
| ||
|
Issuance of common stock |
|
20.3 |
|
9.1 |
| ||
|
Acquisition of treasury stock |
|
(90.9 |
) |
(64.2 |
) | ||
|
Proceeds from financing element derivatives |
|
14.3 |
|
20.4 |
| ||
|
Payments for financing element derivatives |
|
(12.7 |
) |
(16.2 |
) | ||
|
Excess tax benefits from share-based payment arrangements |
|
3.8 |
|
9.9 |
| ||
|
Purchase of subsidiary shares from noncontrolling interest |
|
(30.6 |
) |
— |
| ||
|
Dividends to common stockholders |
|
(67.6 |
) |
(54.3 |
) | ||
|
Dividends to preferred stockholders |
|
— |
|
(8.2 |
) | ||
|
Issuance of long-term debt |
|
3.5 |
|
1.0 |
| ||
|
Principal repayments of long-term debt |
|
(0.4 |
) |
(0.8 |
) | ||
|
Net repayments of short-term borrowings |
|
— |
|
(7.5 |
) | ||
|
Investment contract deposits |
|
1,419.7 |
|
1,618.6 |
| ||
|
Investment contract withdrawals |
|
(2,852.0 |
) |
(2,885.9 |
) | ||
|
Net increase (decrease) in banking operation deposits |
|
6.9 |
|
(13.4 |
) | ||
|
Other |
|
(0.8 |
) |
(1.7 |
) | ||
|
Net cash used in financing activities |
|
(1,586.5 |
) |
(1,393.2 |
) | ||
|
Net decrease in cash and cash equivalents |
|
(2,516.0 |
) |
(1,182.0 |
) | ||
|
Cash and cash equivalents at beginning of period |
|
4,177.2 |
|
2,833.9 |
| ||
|
Cash and cash equivalents at end of period |
|
$ |
1,661.2 |
|
$ |
1,651.9 |
|
See accompanying notes.
Principal Financial Group, Inc.
Notes to Consolidated Financial Statements
March 31, 2013
(Unaudited)
1. Nature of Operations and Significant Accounting Policies
Basis of Presentation
The accompanying unaudited consolidated financial statements of Principal Financial Group, Inc. (“PFG”), its majority-owned subsidiaries and its consolidated variable interest entities (“VIEs”), have been prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”) for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2013, are not necessarily indicative of the results that may be expected for the year ended December 31, 2013. These interim unaudited consolidated financial statements should be read in conjunction with our annual audited financial statements as of December 31, 2012, included in our Form 10-K for the year ended December 31, 2012, filed with the United States Securities and Exchange Commission (“SEC”). The accompanying consolidated statement of financial position as of December 31, 2012, has been derived from the audited consolidated statement of financial position but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.
Reclassifications have been made to prior period financial statements to conform to the March 31, 2013, presentation.
Revisions of Previously Issued Financial Statements
In conjunction with our first quarter 2013 acquisition of AFP Cuprum S.A. (“Cuprum”) in Chile, we re-evaluated the accounting treatment for similar products offered in other foreign jurisdictions, including the AFORE retirement accumulation business in Mexico. As a result of this re-evaluation, we have concluded that the AFORE product, which was previously accounted for under Accounting Standards Codification 944, Financial Services — Insurance, should be accounted for as a long-term service contract, consistent with the accounting requirements for our recently acquired retirement accumulation business in Chile. The revision to the accounting treatment for the AFORE product in Mexico will result in the following changes:
(a) Fewer acquisition costs are capitalized. Specifically, we expense as incurred salary and related costs associated with the successful efforts of our proprietary sales force and sales support staff. All direct and incremental costs such as commissions will continue to be deferred.
(b) Deferred costs are amortized on a straight line basis over the expected contract life rather than based on estimated gross profits. The amortization method change also impacts purchased customer intangible assets.
We have revised our prior period consolidated financial statements accordingly. These revisions, inclusive of any other potential adjustments, are not material in any prior period based on an analysis of quantitative and qualitative factors in accordance with SEC Staff Accounting Bulletin 108, and, as a result, amendment of previously filed periodic reports is not required. Rather, these revisions will be made the next time we file the prior period consolidated financial statements.
The following tables quantify the prior period impact of this revision.
Principal Financial Group, Inc.
Notes to Consolidated Financial Statements
March 31, 2013
(Unaudited)
Principal Financial Group, Inc.
Consolidated Statements of Financial Position
|
|
|
December 31, 2012 |
|
December 31, 2011 |
| ||||||||
|
|
|
As originally |
|
|
|
As originally |
|
|
| ||||
|
|
|
reported |
|
As adjusted |
|
reported |
|
As adjusted |
| ||||
|
|
|
(in millions) |
| ||||||||||
|
Assets |
|
|
|
|
|
|
|
|
| ||||
|
Fixed maturities, available-for-sale |
|
$ |
50,939.3 |
|
$ |
50,939.3 |
|
$ |
49,006.7 |
|
$ |
49,006.7 |
|
|
Fixed maturities, trading |
|
626.7 |
|
626.7 |
|
971.7 |
|
971.7 |
| ||||
|
Equity securities, available-for-sale |
|
136.5 |
|
136.5 |
|
77.1 |
|
77.1 |
| ||||
|
Equity securities, trading |
|
252.8 |
|
252.8 |
|
404.8 |
|
404.8 |
| ||||
|
Mortgage loans |
|
11,519.7 |
|
11,519.7 |
|
10,727.2 |
|
10,727.2 |
| ||||
|
Real estate |
|
1,180.3 |
|
1,180.3 |
|
1,092.9 |
|
1,092.9 |
| ||||
|
Policy loans |
|
864.9 |
|
864.9 |
|
885.1 |
|
885.1 |
| ||||
|
Other investments |
|
3,291.1 |
|
3,291.1 |
|
2,985.8 |
|
2,985.8 |
| ||||
|
Total investments |
|
68,811.3 |
|
68,811.3 |
|
66,151.3 |
|
66,151.3 |
| ||||
|
Cash and cash equivalents |
|
4,177.2 |
|
4,177.2 |
|
2,833.9 |
|
2,833.9 |
| ||||
|
Accrued investment income |
|
584.4 |
|
584.4 |
|
615.2 |
|
615.2 |
| ||||
|
Premiums due and other receivables |
|
1,084.4 |
|
1,084.4 |
|
1,196.5 |
|
1,196.5 |
| ||||
|
Deferred acquisition costs |
|
2,673.8 |
|
2,590.0 |
|
2,428.0 |
|
2,358.1 |
| ||||
|
Property and equipment |
|
464.2 |
|
464.2 |
|
457.2 |
|
457.2 |
| ||||
|
Goodwill |
|
543.4 |
|
543.4 |
|
482.3 |
|
482.3 |
| ||||
|
Other intangibles |
|
927.2 |
|
914.7 |
|
890.6 |
|
870.3 |
| ||||
|
Separate account assets |
|
81,653.8 |
|
81,653.8 |
|
71,364.4 |
|
71,364.4 |
| ||||
|
Other assets |
|
1,006.8 |
|
1,006.8 |
|
942.3 |
|
942.3 |
| ||||
|
Total assets |
|
$ |
161,926.5 |
|
$ |
161,830.2 |
|
$ |
147,361.7 |
|
$ |
147,271.5 |
|
|
Liabilities |
|
|
|
|
|
|
|
|
| ||||
|
Contractholder funds |
|
$ |
37,786.5 |
|
$ |
37,786.5 |
|
$ |
37,676.4 |
|
$ |
37,676.4 |
|
|
Future policy benefits and claims |
|
22,436.2 |
|
22,436.2 |
|
20,210.4 |
|
20,210.4 |
| ||||
|
Other policyholder funds |
|
716.4 |
|
716.4 |
|
548.6 |
|
548.6 |
| ||||
|
Short-term debt |
|
40.8 |
|
40.8 |
|
105.2 |
|
105.2 |
| ||||
|
Long-term debt |
|
2,671.3 |
|
2,671.3 |
|
1,564.8 |
|
1,564.8 |
| ||||
|
Income taxes currently payable |
|
15.3 |
|
15.3 |
|
3.1 |
|
3.1 |
| ||||
|
Deferred income taxes |
|
626.5 |
|
600.0 |
|
208.7 |
|
184.0 |
| ||||
|
Separate account liabilities |
|
81,653.8 |
|
81,653.8 |
|
71,364.4 |
|
71,364.4 |
| ||||
|
Other liabilities |
|
6,146.1 |
|
6,146.1 |
|
6,286.2 |
|
6,286.2 |
| ||||
|
Total liabilities |
|
152,092.9 |
|
152,066.4 |
|
137,967.8 |
|
137,943.1 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Redeemable noncontrolling interest |
|
60.4 |
|
60.4 |
|
22.2 |
|
22.2 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
| ||||
|
Series A preferred stock, par value |
|
— |
|
— |
|
— |
|
— |
| ||||
|
Series B preferred stock, par value |
|
0.1 |
|
0.1 |
|
0.1 |
|
0.1 |
| ||||
|
Common stock, par value |
|
4.5 |
|
4.5 |
|
4.5 |
|
4.5 |
| ||||
|
Additional paid-in capital |
|
9,730.9 |
|
9,730.9 |
|
9,634.7 |
|
9,634.7 |
| ||||
|
Retained earnings |
|
4,940.2 |
|
4,862.0 |
|
4,402.3 |
|
4,323.4 |
| ||||
|
Accumulated other comprehensive income |
|
631.9 |
|
640.3 |
|
258.0 |
|
271.4 |
| ||||
|
Treasury stock, at cost |
|
(5,554.4 |
) |
(5,554.4 |
) |
(5,281.7 |
) |
(5,281.7 |
) | ||||
|
Total stockholders’ equity attributable to Principal Financial Group, Inc. |
|
9,753.2 |
|
9,683.4 |
|
9,017.9 |
|
8,952.4 |
| ||||
|
Noncontrolling interest |
|
20.0 |
|
20.0 |
|
353.8 |
|
353.8 |
| ||||
|
Total stockholders’ equity |
|
9,773.2 |
|
9,703.4 |
|
9,371.7 |
|
9,306.2 |
| ||||
|
Total liabilities and stockholders’ equity |
|
$ |
161,926.5 |
|
$ |
161,830.2 |
|
$ |
147,361.7 |
|
$ |
147,271.5 |
|
Principal Financial Group, Inc.
Notes to Consolidated Financial Statements
March 31, 2013
(Unaudited)
Principal Financial Group, Inc.
Consolidated Statements of Operations
|
|
|
For the year ended |
|
For the year ended |
| ||||||||
|
|
|
December 31, 2012 |
|
December 31, 2011 |
| ||||||||
|
|
|
As originally |
|
|
|
As originally |
|
|
| ||||
|
|
|
reported |
|
As adjusted |
|
reported |
|
As adjusted |
| ||||
|
|
|
(in millions, except per share data) |
| ||||||||||
|
Revenues |
|
|
|
|
|
|
|
|
| ||||
|
Premiums and other considerations |
|
$ |
3,219.4 |
|
$ |
3,219.4 |
|
$ |
2,891.0 |
|
$ |
2,891.0 |
|
|
Fees and other revenues |
|
2,626.7 |
|
2,626.7 |
|
2,526.7 |
|
2,526.7 |
| ||||
|
Net investment income |
|
3,254.9 |
|
3,254.9 |
|
3,375.3 |
|
3,375.3 |
| ||||
|
Net realized capital gains, excluding impairment losses on available-for-sale securities |
|
232.7 |
|
232.7 |
|
75.0 |
|
75.0 |
| ||||
|
Total other-than-temporary impairment losses on available-for- sale securities |
|
(135.9 |
) |
(135.9 |
) |
(147.6 |
) |
(147.6 |
) | ||||
|
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to (from) other comprehensive income |
|
17.3 |
|
17.3 |
|
(49.7 |
) |
(49.7 |
) | ||||
|
Net impairment losses on available-for-sale securities |
|
(118.6 |
) |
(118.6 |
) |
(197.3 |
) |
(197.3 |
) | ||||
|
Net realized capital gains (losses) |
|
114.1 |
|
114.1 |
|
(122.3 |
) |
(122.3 |
) | ||||
|
Total revenues |
|
9,215.1 |
|
9,215.1 |
|
8,670.7 |
|
8,670.7 |
| ||||
|
Expenses |
|
|
|
|
|
|
|
|
| ||||
|
Benefits, claims and settlement expenses |
|
5,123.9 |
|
5,123.9 |
|
4,616.6 |
|
4,616.6 |
| ||||
|
Dividends to policyholders |
|
197.7 |
|
197.7 |
|
210.2 |
|
210.2 |
| ||||
|
Operating expenses |
|
2,934.1 |
|
2,933.5 |
|
2,950.8 |
|
2,971.1 |
| ||||
|
Total expenses |
|
8,255.7 |
|
8,255.1 |
|
7,777.6 |
|
7,797.9 |
| ||||
|
Income before income taxes |
|
959.4 |
|
960.0 |
|
893.1 |
|
872.8 |
| ||||
|
Income taxes |
|
134.7 |
|
134.6 |
|
204.2 |
|
198.3 |
| ||||
|
Net income |
|
824.7 |
|
825.4 |
|
688.9 |
|
674.5 |
| ||||
|
Net income attributable to noncontrolling interest |
|
18.8 |
|
18.8 |
|
36.2 |
|
36.2 |
| ||||
|
Net income attributable to Principal Financial Group, Inc. |
|
805.9 |
|
806.6 |
|
652.7 |
|
638.3 |
| ||||
|
Preferred stock dividends |
|
33.0 |
|
33.0 |
|
33.0 |
|
33.0 |
| ||||
|
Net income available to common stockholders |
|
$ |
772.9 |
|
$ |
773.6 |
|
$ |
619.7 |
|
$ |
605.3 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Earnings per common share |
|
|
|
|
|
|
|
|
| ||||
|
Basic earnings per common share |
|
$ |
2.60 |
|
$ |
2.60 |
|
$ |
1.97 |
|
$ |
1.92 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Diluted earnings per common share |
|
$ |
2.57 |
|
$ |
2.58 |
|
$ |
1.95 |
|
$ |
1.91 |
|
Principal Financial Group, Inc.
Notes to Consolidated Financial Statements
March 31, 2013
(Unaudited)
Principal Financial Group, Inc.
Consolidated Statements of Operations
|
|
|
For the six months ended |
|
For the nine months ended |
| ||||||||
|
|
|
June 30, 2012 |
|
September 30, 2012 |
| ||||||||
|
|
|
As originally |
|
|
|
As originally |
|
|
| ||||
|
|
|
reported |
|
As adjusted |
|
reported |
|
As adjusted |
| ||||
|
|
|
(in millions, except per share data) |
| ||||||||||
|
Revenues |
|
|
|
|
|
|
|
|
| ||||
|
Premiums and other considerations |
|
$ |
1,361.1 |
|
$ |
1,361.1 |
|
$ |
2,519.3 |
|
$ |
2,519.3 |
|
|
Fees and other revenues |
|
1,234.1 |
|
1,234.1 |
|
1,909.1 |
|
1,909.1 |
| ||||
|
Net investment income |
|
1,625.8 |
|
1,625.8 |
|
2,409.6 |
|
2,409.6 |
| ||||
|
Net realized capital gains, excluding impairment losses on available-for-sale securities |
|
54.3 |
|
54.3 |
|
176.4 |
|
176.4 |
| ||||
|
Total other-than-temporary impairment losses on available-for- sale securities |
|
(82.8 |
) |
(82.8 |
) |
(126.4 |
) |
(126.4 |
) | ||||
|
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to other comprehensive income |
|
22.0 |
|
22.0 |
|
31.2 |
|
31.2 |
| ||||
|
Net impairment losses on available-for-sale securities |
|
(60.8 |
) |
(60.8 |
) |
(95.2 |
) |
(95.2 |
) | ||||
|
Net realized capital gains (losses) |
|
(6.5 |
) |
(6.5 |
) |
81.2 |
|
81.2 |
| ||||
|
Total revenues |
|
4,214.5 |
|
4,214.5 |
|
6,919.2 |
|
6,919.2 |
| ||||
|
Expenses |
|
|
|
|
|
|
|
|
| ||||
|
Benefits, claims and settlement expenses |
|
2,322.5 |
|
2,322.5 |
|
3,969.5 |
|
3,969.5 |
| ||||
|
Dividends to policyholders |
|
99.8 |
|
99.8 |
|
149.5 |
|
149.5 |
| ||||
|
Operating expenses |
|
1,280.1 |
|
1,284.7 |
|
2,106.7 |
|
2,101.1 |
| ||||
|
Total expenses |
|
3,702.4 |
|
3,707.0 |
|
6,225.7 |
|
6,220.1 |
| ||||
|
Income before income taxes |
|
512.1 |
|
507.5 |
|
693.5 |
|
699.1 |
| ||||
|
Income taxes |
|
109.1 |
|
107.6 |
|
99.2 |
|
100.4 |
| ||||
|
Net income |
|
403.0 |
|
399.9 |
|
594.3 |
|
598.7 |
| ||||
|
Net income attributable to noncontrolling interest |
|
11.9 |
|
11.9 |
|
15.3 |
|
15.3 |
| ||||
|
Net income attributable to Principal Financial Group, Inc. |
|
391.1 |
|
388.0 |
|
579.0 |
|
583.4 |
| ||||
|
Preferred stock dividends |
|
16.5 |
|
16.5 |
|
24.7 |
|
24.7 |
| ||||
|
Net income available to common stockholders |
|
$ |
374.6 |
|
$ |
371.5 |
|
$ |
554.3 |
|
$ |
558.7 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Earnings per common share |
|
|
|
|
|
|
|
|
| ||||
|
Basic earnings per common share |
|
$ |
1.25 |
|
$ |
1.24 |
|
$ |
1.86 |
|
$ |
1.87 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Diluted earnings per common share |
|
$ |
1.24 |
|
$ |
1.22 |
|
$ |
1.84 |
|
$ |
1.85 |
|
Principal Financial Group, Inc.
Notes to Consolidated Financial Statements
March 31, 2013
(Unaudited)
Principal Financial Group, Inc.
Consolidated Statements of Operations
|
|
|
For the three months ended |
|
For the three months ended |
|
For the three months ended |
|
For the three months ended |
| ||||||||||||||||
|
|
|
March 31, 2012 |
|
June 30, 2012 |
|
September 30, 2012 |
|
December 31, 2012 |
| ||||||||||||||||
|
|
|
As originally |
|
|
|
As originally |
|
|
|
As originally |
|
|
|
As originally |
|
|
| ||||||||
|
|
|
reported |
|
As adjusted |
|
reported |
|
As adjusted |
|
reported |
|
As adjusted |
|
reported |
|
As adjusted |
| ||||||||
|
|
|
(in millions, except per share data) |
| ||||||||||||||||||||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
Premiums and other considerations |
|
$ |
679.8 |
|
$ |
679.8 |
|
$ |
681.3 |
|
$ |
681.3 |
|
$ |
1,158.2 |
|
$ |
1,158.2 |
|
$ |
700.1 |
|
$ |
700.1 |
|
|
Fees and other revenues |
|
598.0 |
|
598.0 |
|
636.1 |
|
636.1 |
|
675.0 |
|
675.0 |
|
717.6 |
|
717.6 |
| ||||||||
|
Net investment income |
|
824.8 |
|
824.8 |
|
801.0 |
|
801.0 |
|
783.8 |
|
783.8 |
|
845.3 |
|
845.3 |
| ||||||||
|
Net realized capital gains, excluding impairment losses on available-for-sale securities |
|
22.1 |
|
22.1 |
|
32.2 |
|
32.2 |
|
122.1 |
|
122.1 |
|
56.3 |
|
56.3 |
| ||||||||
|
Total other-than-temporary impairment losses on available-for-sale securities |
|
(33.7 |
) |
(33.7 |
) |
(49.1 |
) |
(49.1 |
) |
(43.6 |
) |
(43.6 |
) |
(9.5 |
) |
(9.5 |
) | ||||||||
|
Other-than-temporary impairment losses on fixed maturities, available-for- sale reclassified to (from) other comprehensive income |
|
4.9 |
|
4.9 |
|
17.1 |
|
17.1 |
|
9.2 |
|
9.2 |
|
(13.9 |
) |
(13.9 |
) | ||||||||
|
Net impairment losses on available-for-sale securities |
|
(28.8 |
) |
(28.8 |
) |
(32.0 |
) |
(32.0 |
) |
(34.4 |
) |
(34.4 |
) |
(23.4 |
) |
(23.4 |
) | ||||||||
|
Net realized capital gains (losses) |
|
(6.7 |
) |
(6.7 |
) |
0.2 |
|
0.2 |
|
87.7 |
|
87.7 |
|
32.9 |
|
32.9 |
| ||||||||
|
Total revenues |
|
2,095.9 |
|
2,095.9 |
|
2,118.6 |
|
2,118.6 |
|
2,704.7 |
|
2,704.7 |
|
2,295.9 |
|
2,295.9 |
| ||||||||
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
Benefits, claims and settlement expenses |
|
1,212.5 |
|
1,212.5 |
|
1,110.0 |
|
1,110.0 |
|
1,647.0 |
|
1,647.0 |
|
1,154.4 |
|
1,154.4 |
| ||||||||
|
Dividends to policyholders |
|
50.3 |
|
50.3 |
|
49.5 |
|
49.5 |
|
49.7 |
|
49.7 |
|
48.2 |
|
48.2 |
| ||||||||
|
Operating expenses |
|
556.0 |
|
555.1 |
|
724.1 |
|
729.6 |
|
826.6 |
|
816.4 |
|
827.4 |
|
832.4 |
| ||||||||
|
Total expenses |
|
1,818.8 |
|
1,817.9 |
|
1,883.6 |
|
1,889.1 |
|
2,523.3 |
|
2,513.1 |
|
2,030.0 |
|
2,035.0 |
| ||||||||
|
Income before income taxes |
|
277.1 |
|
278.0 |
|
235.0 |
|
229.5 |
|
181.4 |
|
191.6 |
|
265.9 |
|
260.9 |
| ||||||||
|
Income taxes (benefits) |
|
58.2 |
|
56.7 |
|
50.9 |
|
50.9 |
|
(9.9 |
) |
(7.2 |
) |
35.5 |
|
34.2 |
| ||||||||
|
Net income |
|
218.9 |
|
221.3 |
|
184.1 |
|
178.6 |
|
191.3 |
|
198.8 |
|
230.4 |
|
226.7 |
| ||||||||
|
Net income attributable to noncontrolling interest |
|
9.2 |
|
9.2 |
|
2.7 |
|
2.7 |
|
3.4 |
|
3.4 |
|
3.5 |
|
3.5 |
| ||||||||
|
Net income attributable to Principal Financial Group, Inc. |
|
209.7 |
|
212.1 |
|
181.4 |
|
175.9 |
|
187.9 |
|
195.4 |
|
226.9 |
|
223.2 |
| ||||||||
|
Preferred stock dividends |
|
8.2 |
|
8.2 |
|
8.3 |
|
8.3 |
|
8.2 |
|
8.2 |
|
8.3 |
|
8.3 |
| ||||||||
|
Net income available to common stockholders |
|
$ |
201.5 |
|
$ |
203.9 |
|
$ |
173.1 |
|
$ |
167.6 |
|
$ |
179.7 |
|
$ |
187.2 |
|
$ |
218.6 |
|
$ |
214.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
Basic earnings per common share |
|
$ |
0.67 |
|
$ |
0.68 |
|
$ |
0.58 |
|
$ |
0.56 |
|
$ |
0.61 |
|
$ |
0.64 |
|
$ |
0.74 |
|
$ |
0.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
Diluted earnings per common share |
|
$ |
0.66 |
|
$ |
0.68 |
|
$ |
0.58 |
|
$ |
0.56 |
|
$ |
0.60 |
|
$ |
0.63 |
|
$ |
0.74 |
|
$ |
0.72 |
|
Principal Financial Group, Inc.
Notes to Consolidated Financial Statements
March 31, 2013
(Unaudited)
Principal Financial Group, Inc.
Consolidated Statements of Comprehensive Income
|
|
|
For the year ended |
|
For the year ended |
| ||||||||
|
|
|
December 31, 2012 |
|
December 31, 2011 |
| ||||||||
|
|
|
As originally |
|
|
|
As originally |
|
|
| ||||
|
|
|
reported |
|
As adjusted |
|
reported |
|
As adjusted |
| ||||
|
|
|
(in millions) |
| ||||||||||
|
Net income |
|
$ |
824.7 |
|
$ |
825.4 |
|
$ |
688.9 |
|
$ |
674.5 |
|
|
Other comprehensive income (loss), net: |
|
|
|
|
|
|
|
|
| ||||
|
Net unrealized gains on available-for-sale securities |
|
557.6 |
|
557.6 |
|
208.6 |
|
208.6 |
| ||||
|
Noncredit component of impairment losses on fixed maturities, available-for-sale |
|
(6.7 |
) |
(6.7 |
) |
31.0 |
|
31.0 |
| ||||
|
Net unrealized gains (losses) on derivative instruments |
|
(43.6 |
) |
(43.6 |
) |
23.6 |
|
23.6 |
| ||||
|
Foreign currency translation adjustment |
|
(4.8 |
) |
(9.8 |
) |
(139.5 |
) |
(130.9 |
) | ||||
|
Net unrecognized postretirement benefit obligation |
|
(127.4 |
) |
(127.4 |
) |
(172.9 |
) |
(172.9 |
) | ||||
|
Other comprehensive income (loss) |
|
375.1 |
|
370.1 |
|
(49.2 |
) |
(40.6 |
) | ||||
|
Comprehensive income |
|
1,199.8 |
|
1,195.5 |
|
639.7 |
|
633.9 |
| ||||
|
Comprehensive income attributable to noncontrolling interest |
|
20.0 |
|
20.0 |
|
35.7 |
|
35.7 |
| ||||
|
Comprehensive income attributable to Principal Financial Group, Inc. |
|
$ |
1,179.8 |
|
$ |
1,175.5 |
|
$ |
604.0 |
|
$ |
598.2 |
|
Principal Financial Group, Inc.
Consolidated Statements of Comprehensive Income
|
|
|
For the six months ended |
|
For the nine months ended |
| ||||||||
|
|
|
June 30, 2012 |
|
September 30, 2012 |
| ||||||||
|
|
|
As originally |
|
|
|
As originally |
|
|
| ||||
|
|
|
reported |
|
As adjusted |
|
reported |
|
As adjusted |
| ||||
|
|
|
(in millions) |
| ||||||||||
|
Net income |
|
$ |
403.0 |
|
$ |
399.9 |
|
$ |
594.3 |
|
$ |
598.7 |
|
|
Other comprehensive income, net: |
|
|
|
|
|
|
|
|
| ||||
|
Net unrealized gains on available-for-sale securities |
|
262.0 |
|
262.0 |
|
558.0 |
|
558.0 |
| ||||
|
Noncredit component of impairment losses on fixed maturities, available-for-sale |
|
(10.8 |
) |
(10.8 |
) |
(14.8 |
) |
(14.8 |
) | ||||
|
Net unrealized gains on derivative instruments |
|
45.4 |
|
45.4 |
|
27.2 |
|
27.2 |
| ||||
|
Foreign currency translation adjustment |
|
(21.4 |
) |
(23.9 |
) |
27.2 |
|
21.5 |
| ||||
|
Net unrecognized postretirement benefit obligation |
|
17.5 |
|
17.5 |
|
26.2 |
|
26.2 |
| ||||
|
Other comprehensive income |
|
292.7 |
|
290.2 |
|
623.8 |
|
618.1 |
| ||||
|
Comprehensive income |
|
695.7 |
|
690.1 |
|
1,218.1 |
|
1,216.8 |
| ||||
|
Comprehensive income attributable to noncontrolling interest |
|
12.1 |
|
12.1 |
|
16.3 |
|
16.3 |
| ||||
|
Comprehensive income attributable to Principal Financial Group, Inc. |
|
$ |
683.6 |
|
$ |
678.0 |
|
$ |
1,201.8 |
|
$ |
1,200.5 |
|
Principal Financial Group, Inc.
Notes to Consolidated Financial Statements
March 31, 2013
(Unaudited)
Principal Financial Group, Inc.
Consolidated Statements of Comprehensive Income
|
|
|
For the three months ended |
|
For the three months ended |
|
For the three months ended |
|
For the three months ended |
| ||||||||||||||||
|
|
|
March 31, 2012 |
|
June 30, 2012 |
|
September 30, 2012 |
|
December 31, 2012 |
| ||||||||||||||||
|
|
|
As originally |
|
|
|
As originally |
|
|
|
As originally |
|
|
|
As originally |
|
|
| ||||||||
|
|
|
reported |
|
As adjusted |
|
reported |
|
As adjusted |
|
reported |
|
As adjusted |
|
reported |
|
As adjusted |
| ||||||||
|
|
|
(in millions) |
| ||||||||||||||||||||||
|
Net income |
|
$ |
218.9 |
|
$ |
221.3 |
|
$ |
184.1 |
|
$ |
178.6 |
|
$ |
191.3 |
|
$ |
198.8 |
|
$ |
230.4 |
|
$ |
226.7 |
|
|
Other comprehensive income (loss) net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
Net unrealized gains (losses) on available-for-sale securities |
|
161.3 |
|
161.3 |
|
100.7 |
|
100.7 |
|
296.0 |
|
296.0 |
|
(0.4 |
) |
(0.4 |
) | ||||||||
|
Noncredit component of impairment losses on fixed maturities, available-for-sale |
|
(0.9 |
) |
(0.9 |
) |
(9.9 |
) |
(9.9 |
) |
(4.0 |
) |
(4.0 |
) |
8.1 |
|
8.1 |
| ||||||||
|
Net unrealized gains (losses) on derivative instruments |
|
(3.5 |
) |
(3.5 |
) |
48.9 |
|
48.9 |
|
(18.2 |
) |
(18.2 |
) |
(70.8 |
) |
(70.8 |
) | ||||||||
|
Foreign currency translation adjustment |
|
65.3 |
|
59.6 |
|
(86.7 |
) |
(83.5 |
) |
48.6 |
|
45.4 |
|
(32.0 |
) |
(31.3 |
) | ||||||||
|
Net unrecognized postretirement benefit obligation |
|
8.7 |
|
8.7 |
|
8.8 |
|
8.8 |
|
8.7 |
|
8.7 |
|
(153.6 |
) |
(153.6 |
) | ||||||||
|
Other comprehensive income (loss) |
|
230.9 |
|
225.2 |
|
61.8 |
|
65.0 |
|
331.1 |
|
327.9 |
|||||||||||||