Principal Financial Group 2010 Annual Report Download - page 27

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USE OF NON-GAAP FINANCIAL MEASURES
Principal Financial Group, Inc.
27
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 financial measures. Therefore, we provide below a reconciliation of the non-GAAP measures to the
comparable GAAP financial measures.
1 Certain reclassifications have been made to 2006, 2007, 2008 and 2009 to conform to 2010 presentation.
2 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.
For฀the฀year฀ended฀December฀31,
2010 2009 2008 2007 2006
(in millions, except as indicated)
Net income available to common stockholders per diluted share
Operating earnings per diluted share1 $ 2.62 $ 2.45 $ 3.23 $ 3.64 $ 2.96
Net realized capital gains (losses) (0.61) (0.72) (1.93) (0.85) 0.07
Other after-tax adjustments 0.05 0.24 0.33 0.30 0.71
Net income available to common stockholders per diluted share $ 2.06 $ 1.97 $ 1.63 $ 3.09 $ 3.74
Net income available to common stockholders
Operating earnings1 $ 844.8 $ 733.3 $ 844.6 $ 976.0 $ 815.4
Net realized capital gains (losses) (194.2) (213.4) (503.5) (228.6) 17.9
Other after-tax adjustments 15.7 69.8 84.0 79.9 198.0
Net income available to common stockholders $ 666.3 $ 589.7 $ 425.1 $ 827.3 $ 1,031.3
Stockholders’ equity attributable to Principal Financial Group, Inc.
Stockholders’ equity attributable to Principal Financial Group, Inc.
x-OCI2 available to common stockholders $ 8,913.4 $ 8,393.5 $ 6,842.4 $ 6,459.5 $ 6,471.9
Net unrealized capital gains (losses) 432.7 (640.5) (4,170.8) 317.1 859.0
Foreign currency translation 27.9 (5.3) (173.5) 35.9 (26.6)
Net unrecognized post-retirement benefit obligations (188.2) (396.2) (567.3) 67.2 14.5
Preferred stock, at par 0.1 0.1 0.1 0.1 0.1
Paid-in capital - preferred stock 541.9 541.9 541.9 541.9 541.9
Stockholders’ equity attributable to Principal Financial Group, Inc. $ 9,727.8 $ 7,893.5 $ 2,472.8 $ 7,421.7 $ 7,860.8
Net income ROE available to common stockholders (including OCI)
Operating earnings ROE1 (x-OCI) 9.8% 9.6% 12.7% 15.1% 12.8%
Net realized capital gains (losses) -2.3 -2.9 -7.6 -3.5 0.2
Other after-tax adjustments 0.2 1.0 1.3 1.2 3.2
Net income ROE available to common stockholders (x-OCI) 7.7 7.7 6.4 12.8 16.2
Net unrealized capital gains (losses) 0.1 3.6 2.7 -1.1 -2.1
Foreign currency translation 0.0 0.2 0.1 0.0 0.0
Net unrecognized post-retirement benefit obligations 0.3 1.2 0.5 0.0 0.0
Net income ROE available to common stockholders (including OCI) 8.1% 12.7% 9.7% 11.7% 14.1%
THE PRINCIPAL FINANCIAL GROUP