Principal Financial Group 2009 Annual Report Download - page 26

SuMMARy COnSOLiDATED STATEMEnTS OF CASH FLOWS
Principal Financial Group, Inc.
For the year ended December 31,
2009 2008 2007
(in millions)
Operating activities
Net income $ 645.7 $ 465.8 $ 884.5
Adjustments to reconcile net income to net cash provided by operating activities:
Income from discontinued operations, net of related income taxes — — (20.2)
Amortization of deferred policy acquisition costs 92.2 373.7 357.3
Additions to deferred policy acquisition costs (482.4) (680.3) (606.1)
Accrued investment income 58.8 23.4 (52.1)
Net cash flows for trading securities (127.4) (348.0) (258.2)
Premiums due and other receivables (126.9) (39.2) 191.8
Contractholder and policyholder liabilities and dividends 1,530.9 2,394.2 2,276.7
Current and deferred income taxes (benefits) 65.7 (219.7) (70.3)
Net realized capital losses 398.3 694.1 328.8
Depreciation and amortization expense 138.5 145.0 130.2
Mortgage loans held for sale, acquired or originated (61.2) (92.0) (83.8)
Mortgage loans held for sale, sold or repaid, net of gain 75.4 73.7 166.8
Real estate acquired through operating activities (19.8) (77.5) (48.2)
Real estate sold through operating activities 5.2 24.5 43.7
Stock-based compensation 37.2 31.5 72.8
Other 12.8 (544.4) (353.7)
Net adjustments 1,597.3 1,759.0 2,075.5
Net cash provided by operating activities 2,243.0 2,224.8 2,960.0
Investing activities
Available for sale securities:
Purchases (7,933.3) (6,605.8) (10,520.3)
Sales 3,573.6 1,343.5 3,039.6
Maturities 4,434.3 3,207.9 4,461.6
Mortgage loans acquired or originated (586.5) (3,484.9) (3,108.0)
Mortgage loans sold or repaid 1,704.4 2,902.0 2,112.8
Real estate acquired (62.2) (33.3) (115.2)
Real estate sold 30.3 70.6 53.0
Net purchases of property and equipment (26.2) (105.0) (98.4)
Purchases of interest in subsidiaries, net of cash acquired (45.7) (20.3) (76.1)
Net change in other investments (61.9) (191.9) (248.2)
Net cash provided by (used in) investing activities 1,026.8 (2,917.2) (4,499.2)
Financing activities
Issuance of common stock 1,123.0 36.4 73.6
Acquisition of treasury stock (4.1) (6.4) (756.3)
Proceeds from financing element derivatives 122.0 142.2 128.7
Payments for financing element derivatives (67.4) (114.6) (137.2)
Excess tax benefits from share-based payment arrangements 0.2 3.1 10.2
Dividends to common stockholders (159.5) (116.7) (235.6)
Dividends to preferred stockholders (33.0) (33.0) (41.2)
Issuance of long-term debt 745.1 7.9 0.2
Principal repayments of long-term debt (468.2) (83.3) (115.0)
Net proceeds (repayments) of short-term borrowings (405.1) 217.4 203.9
Investment contract deposits 4,224.1 11,349.0 9,958.9
Investment contract withdrawals (8,752.7) (9,813.7) (8,209.9)
Net increase in banking operation deposits 43.9 373.1 417.1
Other (5.7) (5.4) (5.3)
Net cash provided by (used in) financing activities $ (3,637.4) $ 1,956.0 $ 1,292.1
The information in the summary consolidated statements of cash flows shown above has been prepared in conformity with accounting principles generally accepted in the U.S.
(“U.S. GAAP”). It is a replication of the information in the consolidated statements of cash flows in the Principal Financial Group, Inc.’s 2009 Form 10-K. For complete financial
statements, including notes and management’s discussion and analysis of financial condition and results of operations, please refer to the 2009 Form 10-K filed by the company
with the Securities and Exchange Commission, which can be found at www.principal.com/10k.
the principal financial group
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