Principal Financial Group 2011 Annual Report Download - page 27

฀ ฀ ฀For฀the฀year฀ended฀December฀31,
฀ Amortization฀of฀deferred฀policy฀acquisition฀costs฀
฀ Additions฀to฀deferred฀policy฀acquisition฀costs฀ ฀
฀ Depreciation฀and฀amortization฀expense฀ ฀
฀ Mortgage฀loans฀held฀for฀sale,฀acquired฀or฀originated฀ ฀
฀ Real฀estate฀acquired฀through฀operating฀activities฀ ฀ ฀ ฀ —฀ ฀ (19.8)
Mortgage฀loans฀acquired฀or฀originated฀
Real฀estate฀acquired฀ ฀
Net฀purchases฀of฀property฀and฀equipment฀ ฀
Purchases฀of฀interest฀in฀subsidiaries,฀net฀of฀cash฀acquired฀ ฀ ฀ ฀ —฀ ฀ (45.7)
Acquisition฀of฀treasury฀stock฀ ฀
Dividends฀to฀common฀stockholders฀ ฀
Dividends฀to฀preferred฀stockholders฀ ฀
—
Net฀increase฀(decrease)฀in฀cash฀and฀cash฀equivalents฀ ฀
Cash฀and฀cash฀equivalents฀at฀beginning฀of฀year
Cash฀and฀cash฀equivalents฀at฀end฀of฀year
USE OF NON-GAAP FINANCIAL MEASURES
Principal Financial Group, Inc.
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 2007, 2008, 2009 and 2010 to conform to 2011 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,
2011 2010 2009 2008 2007
(in millions, except as indicated)
Net income available to common stockholders per diluted share
Operating earnings per diluted share1 $ 2.76 $ 2.62 $ 2.45 $ 3.23 $ 3.64
Net realized capital gains (losses) (0.46) (0.61) (0.72) (1.93) (0.85)
Other after-tax adjustments (0.15) 0.05 0.24 0.33 0.30
Net income available to common stockholders per diluted share $ 2.15 $ 2.06 $ 1.97 $ 1.63 $ 3.09
Net income available to common stockholders
Operating earnings1 $ 878.1 $ 844.8 $ 733.3 $ 844.6 $ 976.0
Net realized capital gains (losses) (148.3) (194.2) (213.4) (503.5) (228.6)
Other after-tax adjustments (47.8) 15.7 69.8 84.0 79.9
Net income available to common stockholders $ 682.0 $ 666.3 $ 589.7 $ 425.1 $ 827.3
Stockholders’฀equity฀attributable฀to฀Principal฀Financial฀Group,฀Inc.฀ ฀ ฀ ฀ ฀
Stockholders’฀equity฀attributable฀to฀Principal฀Financial฀Group,฀Inc.฀
x-OCI2 available to common stockholders $ 8,893.1 $ 8,913.4 $ 8,393.5 $ 6,842.4 $ 6,459.5
Net unrealized capital gains (losses) 677.8 432.7 (640.5) (4,170.8) 317.1
Foreign currency translation (114.8) 27.9 (5.3) (173.5) 35.9
Net unrecognized post-retirement benefit obligations (361.1) (188.2) (396.2) (567.3) 67.2
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.฀ $ 9,637.0 $ 9,727.8 $ 7,893.5 $ 2,472.8 $ 7,421.7
Net income ROE available to common stockholders (including OCI)
Operating earnings ROE1 (x-OCI) 9.9% 9.8% 9.6% 12.7% 15.1%
Net realized capital gains (losses) -1.7% -2.3% -2.9% -7.6% -3.5%
Other after-tax adjustments -0.5% 0.2% 1.0% 1.3% 1.2%
Net income ROE available to common stockholders (x-OCI) 7.7% 7.7% 7.7% 6.4% 12.8%
Net unrealized capital gains (losses) -0.4% 0.1% 3.6% 2.7% -1.1%
Foreign currency translation 0.0% 0.0% 0.2% 0.1% 0.0%
Net unrecognized post-retirement benefit obligations 0.2% 0.3% 1.2% 0.5% 0.0%
Net income ROE available to common stockholders (including OCI) 7.5% 8.1% 12.7% 9.7% 11.7%
PRINCIPAL FINANCIAL GROUP | 2011 year in review | 25