Principal Financial Group 2011 Annual Report Download - page 26

SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
Principal Financial Group, Inc.
฀ ฀ ฀For฀the฀year฀ended฀December฀31,
2011 2010 2009
(in millions)
Operating activities
Net income $ 751.2 $ 717.2 $ 645.7
Adjustments to reconcile net income to net cash provided by operating activities:
฀ Amortization฀of฀deferred฀policy฀acquisition฀costs฀ 538.0 205.9 92.2
฀ Additions฀to฀deferred฀policy฀acquisition฀costs฀ ฀ (520.5) (496.3) (482.4)
Accrued investment income 50.9 25.8 58.8
Net cash flows for trading securities 110.8 188.3 (127.4)
Premiums due and other receivables (220.4) (9.6) (126.9)
Contractholder and policyholder liabilities and dividends 1,090.7 1,384.2 1,530.9
Current and deferred income taxes 51.3 60.9 65.7
Net realized capital losses 122.3 191.5 398.3
฀ Depreciation฀and฀amortization฀expense฀ ฀ 115.8 164.7 138.5
฀ Mortgage฀loans฀held฀for฀sale,฀acquired฀or฀originated฀ ฀ (132.3) (60.6) (61.2)
Mortgage loans held for sale, sold or repaid, net of gain 82.0 61.2 75.4
฀ Real฀estate฀acquired฀through฀operating฀activities฀ ฀ (37.4)฀ ฀ —฀ ฀ (19.8)
Real estate sold through operating activities 141.8 121.6 5.2
Stock-based compensation 43.4 47.6 37.2
Other 525.7 189.3 12.8
Net adjustments 1,962.1 2,074.5 1,597.3
Net cash provided by operating activities 2,713.3 2,791.7 2,243.0
Investing activities
Available-for-sale-securities:
Purchases (6,742.4) (7,187.9) (7,933.3)
Sales 980.7 1,684.6 3,439.8
Maturities 5,760.8 5,161.3 4,568.1
Mortgage฀loans฀acquired฀or฀originated฀ (1,484.9) (1,272.0) (586.5)
Mortgage loans sold or repaid 1,793.1 1,798.0 1,704.4
Real฀estate฀acquired฀ ฀ (129.9) (53.8) (62.2)
Net฀purchases฀of฀property฀and฀equipment฀ ฀ (56.9) (21.5) (26.2)
Purchases฀of฀interest฀in฀subsidiaries,฀net฀of฀cash฀acquired฀ ฀ (270.5)฀ ฀ —฀ ฀ (45.7)
Net change in other investments (52.1) (81.2) (31.6)
Net cash provided by (used in) investing activities (202.1) 27.5 1,026.8
Financing activities
Issuance of common stock 25.9 20.6 1,123.0
Acquisition฀of฀treasury฀stock฀ ฀ (556.4) (2.6) (4.1)
Proceeds from financing element derivatives 75.9 79.3 122.0
Payments for financing element derivatives (46.5) (46.5) (67.4)
Excess tax benefits from share-based payment arrangements 2.0 1.0 0.2
Dividends฀to฀common฀stockholders฀ ฀ (213.7) (176.2) (159.5)
Dividends฀to฀preferred฀stockholders฀ ฀ (33.0) (33.0) (33.0)
Issuance of long-term debt — 2.3 745.1
Principal repayments of long-term debt (12.2) (11.1) (468.2)
Net proceeds from (repayments of) short-term borrowings 3.2 1.7 (405.1)
Investment contract deposits 6,302.1 4,283.8 4,224.1
Investment contract withdrawals (7,079.0) (7,343.4) (8,752.7)
Net increase (decrease) in banking operation deposits (18.5) 46.2 43.9
Other
(4.5) (4.3) (5.7)
Net cash used in financing activities (1,554.7) (3,182.2) (3,637.4)
Net฀increase฀(decrease)฀in฀cash฀and฀cash฀equivalents฀ ฀ 956.5 (363.0) (367.6)
Cash฀and฀cash฀equivalents฀at฀beginning฀of฀year 1,877.4 2,240.4 2,608.0
Cash฀and฀cash฀equivalents฀at฀end฀of฀year $ 2,833.9 $ 1,877.4 $ 2,240.4
Supplemental Information:
Cash paid for interest $ 154.1 $ 123.4 $ 129.9
Cash paid for income taxes $ 152.8 $ 55.2 $ 75.4
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 2011 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 2011 Form 10-K filed by the company
with the Securities and Exchange Commission, which can be found at www.principal.com/10k.
24 | 2011 year in review | PRINCIPAL FINANCIAL GROUP