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Principal Financial Group, Inc.
Computation of Earnings to Fixed Charges Ratio
| | For the years ended December 31, | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||
| | ($ in millions) | |||||||||||||||
1. | Income from continuing operations before income taxes | $ | 1,328.7 | $ | 1,123.7 | $ | 879.1 | $ | 820.3 | $ | 371.5 | ||||||
2. | Interest expense | 89.5 | 81.1 | 96.9 | 117.5 | 99.7 | |||||||||||
3. | Interest factor of rental expense | 11.1 | 7.0 | 4.6 | 4.8 | 8.0 | |||||||||||
4. | Undistributed income from equity investees | (62.7 | ) | (34.1 | ) | (19.4 | ) | (18.3 | ) | 4.3 | |||||||
5. | Earnings before interest credited on investment products | 1,366.6 | 1,177.7 | 961.2 | 924.3 | 483.5 | |||||||||||
6. | Interest credited on investment products | 901.1 | 832.2 | 763.7 | 735.7 | 743.4 | |||||||||||
7. | Earnings | $ | 2,267.7 | $ | 2,009.9 | $ | 1,724.9 | $ | 1,660.0 | $ | 1,226.9 | ||||||
8. | Interest expense | $ | 89.5 | $ | 81.1 | $ | 96.9 | $ | 117.5 | $ | 99.7 | ||||||
9. | Interest factor of rental expense | 11.1 | 7.0 | 4.6 | 4.8 | 8.0 | |||||||||||
10. | Preferred stock dividends by registrant | 33.0 | 17.7 | — | — | — | |||||||||||
11. | Preferred stock dividend requirements of majority-owned subsidiaries (non-intercompany) | — | — | — | 1.2 | 0.4 | |||||||||||
12. | Fixed charges before interest credited on investment products | 133.6 | 105.8 | 101.5 | 123.5 | 108.1 | |||||||||||
13. | Interest credited on investment products | 901.1 | 832.2 | 763.7 | 735.7 | 743.4 | |||||||||||
14. | Fixed charges | $ | 1,034.7 | $ | 938.0 | $ | 865.2 | $ | 859.2 | $ | 851.5 | ||||||
15. | Ratio of earnings to fixed charges before interest credited on investment products (Line item 5/Line item 12) | 10.2 | 11.1 | 9.5 | 7.5 | 4.5 | |||||||||||
16. | Ratio of earnings to fixed charges (Line item 7/ Line item 14) | 2.2 | 2.1 | 2.0 | 1.9 | 1.4 |
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