Principal Financial Group 2008 Annual Report Download - page 27

CONSOLIDATED STATEMENTS OF CASH FLOWS
PRINCIPAL FINANCIAL GROUP, INC.
USE OF NON-GAAP FINANCIAL MEASURES
PRINCIPAL FINANCIAL GROUP, INC.
For the year ended December 31,
2008 2007 2006
(in millions, except as indicated)
Discontinued operations
Net cash provided by operating activities $ — $ 2.5 $ 1.9
Net cash used in investing activities — (1.3) (3.4)
Net cash used in financing activities — (0.5) (0.6)
Net cash provided by (used in) discontinued operations — 0.7 (2.1)
Net increase (decrease) in cash and cash equivalents 1,263.6 (246.4) (50.5)
Cash and cash equivalents at beginning of year 1,344.4 1,590.8 1,641.3
Cash and cash equivalents at end of year $ 2,608.0 $ 1,344.4 $ 1,590.8
Cash and cash equivalents of discontinued operations included above
At beginning of year $ — $ (0.7) $ 1.4
At end of year $ — $ — $ (0.7)
Supplemental Information:
Cash paid for interest $ 111.3 $ 115.1 $ 80.1
Cash paid for income taxes $ 206.1 $ 245.9 $ 139.5
For the year ended December 31,
2008 2007 2006 2005 2004
(in millions, except as indicated)
Net income available to common stockholders per diluted share
Operating earnings per diluted share $ 3.61 $ 3.93 $ 3.42 $ 2.87 $ 2.37
Net realized capital gains (losses) (1.93) (0.85) 0.07 (0.06) (0.20)
Other after-tax adjustments (0.05) 0.01 0.25 0.30 0.45
Net income available to common stockholders per diluted share $ 1.63 $ 3.09 $ 3.74 $ 3.11 $ 2.62
Net income available to common stockholders
Operating earnings $ 942.7 $ 1,052.7 $ 943.4 $ 835.9 $ 747.2
Net realized capital gains (losses) (505.3) (229.7) 18.0 (20.6) (62.3)
Other after-tax adjustments (12.3) 4.3 69.9 86.0 140.7
Net income available to common stockholders $ 425.1 $ 827.3 $ 1,031.3 $ 901.3 $ 825.6
Total Stockholders’ Equity
Stockholders’ equity x-OCI available to common stockholders $ 6,842.4 $ 6,459.5 $ 6,471.9 $ 6,270.4 $ 6,231.0
Net unrealized capital gains (losses)
(4,170.8) 317.1 859.0 1,027.9 1,403.9
Foreign currency translation (173.5) 35.9 (26.6) (21.6) (85.3)
Net unrecognized post-retirement benefit obligation (567.3) 67.2 14.5 - -
Minimum pension liability - - - (11.5) (5.3)
Preferred stock, at par 0.1 0.1 0.1 0.1 -
Paid-in capital - preferred stock 541.9 541.9 541.9 541.9 -
Total stockholders’ equity $ 2,472.8 $ 7,421.7 $ 7,860.8 $ 7,807.2 $ 7,544.3
Net income ROE available to common stockholders including OCI*
Operating earnings ROE x-OCI 14.2% 16.3% 14.8% 13.4% 12.0%
Net realized capital gains (losses) -7.6 -3.6 0.3 -0.3 -1.0
Other after-tax adjustments -0.2 0.1 1.1 1.3 2.3
Net income ROE available to common stockholders x-OCI 6.4 12.8 16.2 14.4 13.3
Net unrealized capital gains (losses) 2.7 -1.0 -2.2 -2.3 -2.4
Foreign currency translation 0.1 0.0 0.1 0.1 0.1
Net unrecognized post-retirement benefit obligation 0.5 -0.1 0.0 0.0 0.0
Minimum pension liability 0.0 0.0 0.0 0.0 0.0
Net income ROE available to common stockholders including OCI 9.7% 11.7% 14.1% 12.2% 11.0%
2008 Year in Review | Summary Consolidated Financials
The company uses a number of non-GAAP financial measures that management believes are important in understanding and evaluating the normal, recurring
operations of our businesses. Non-GAAP measures included in the Year in Review are operating earnings per diluted share, operating earnings and operating return
on average equity excluding other comprehensive income. While such measures are also consistent with metrics utilized by the investment community to evaluate
performance, they are not a substitute for U.S. GAAP (GAAP) financial measures. Therefore, we provide below a reconciliation of the non-GAAP measures to the
comparable GAAP financial measures.
*OCI, or Other Comprehensive Income, consists of three items — net unrealized gains (losses)
on available-for-sale securities and derivative instruments, net foreign currency translation
adjustments and unrecognized post-retirement benefit obligation. 25