Principal Financial Group 2012 Annual Report Download - page 18

16 NON-GAAP FINANCIAL MEASURES | 2012 YEAR IN REVIEW
For the year ended Dec. 31
2012 2011 2010 2009 2008
Net income available to common stockholders per diluted share
Operating earnings per diluted share1 $ 2.69 $ 2.66 $ 2.49 $ 2.28 $ 3.09
Net realized capital gains (losses) 0.13 (0.45) (0.58) (0.76) (1.89)
Other after-tax adjustments (0.25) (0.26) 0.04 0.23 0.32
Net income available to common stockholders per diluted share1 $ 2.57 $ 1.95 $ 1.95 $ 1.75 $ 1.52
Net income available to common stockholders
Operating earnings1 $ 808.0 $ 843.8 $ 803.2 $ 681.6 $ 806.8
Net realized capital gains (losses) 39.1 (141.8) (189.0) (227.9) (494.9)
Other after-tax adjustments (74.2) (82.3) 15.7 69.8 84.0
Net income available to common stockholders1 $ 772.9 $ 619.7 $ 629.9 $ 523.5 $ 395.9
Stockholders’ equity attributable to Principal Financial Group, Inc.
Stockholders’ equity attributable to Principal Financial Group, Inc.
x-OCI2 available to common stockholders1 $ 8,579.3 $ 8,217.9 $ 8,300.5 $ 7,816.9 $ 6,332.1
Net unrealized capital gains (losses) 1,235.7 728.4 465.2 (663.6) (4,272.5)
Foreign currency translation (115.3) (109.3) 29.7 (2.0) (168.2)
Net unrecognized post-retirement benefit obligations (488.5) (361.1) (188.2) (396.2) (567.3)
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.1 $ 9,753.2 $ 9,017.9 $ 9,149.2 $ 7,297.1 $ 1,866.1
Net income ROE available to common stockholders (including OCI)
Operating earnings ROE1 (x-OCI) 9.6% 10.2% 10.0% 9.6% 13.1%
Net realized capital gains (losses) 0.5% -1.7% -2.4% -3.2% -7.9%
Other after-tax adjustments -0.9% -1.0% 0.2% 1.0% 1.2%
Net income ROE available to common stockholders (x-OCI) 9.2% 7.5% 7.8% 7.4% 6.4%
Net unrealized capital gains (losses) -1.0% -0.5% 0.1% 4.0% 3.0%
Foreign currency translation 0.1% 0.0% 0.0% 0.2% 0.2%
Net unrecognized post-retirement benefit obligations 0.4% 0.3% 0.3% 1.4% 0.7%
Net income ROE available to common stockholders1 (including OCI) 8.7% 7.3% 8.2% 13.0% 10.3%
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.
(in millions, except as indicated)
1 Certain reclassifications have been made to 2008, 2009, 2010 and 2011 to conform to 2012 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.