Exhibit 12
Principal Financial Group, Inc.
Computation of Earnings to Fixed Charges Ratio
|
| For the nine months ended |
| For the years ended December 31, |
| ||||||||||||||||||
|
| 2010 |
| 2009 |
| 2009 |
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| ||||||||
|
| (in millions) |
| ||||||||||||||||||||
1. | Income from continuing operations before income taxes |
| $ | 577.6 |
| $ | 576.3 |
| $ | 745.8 |
| $ | 461.3 |
| $ | 1,072.4 |
| $ | 1,351.6 |
| $ | 1,138.6 |
|
2. | Interest expense |
| 91.8 |
| 87.7 |
| 118.0 |
| 110.3 |
| 115.3 |
| 86.0 |
| 77.8 |
| |||||||
3. | Interest factor of rental expense |
| 5.0 |
| 6.6 |
| 6.7 |
| 8.8 |
| 12.3 |
| 11.1 |
| 7.0 |
| |||||||
4. | Undistributed income from equity investees |
| (66.0 | ) | (44.2 | ) | (69.4 | ) | (20.4 | ) | (71.6 | ) | (62.7 | ) | (34.1 | ) | |||||||
5. | Earnings before interest credited on investment products |
| 608.4 |
| 626.4 |
| 801.1 |
| 560.0 |
| 1,128.4 |
| 1,386.0 |
| 1,189.3 |
| |||||||
6. | Interest credited on investment products |
| 449.4 |
| 560.9 |
| 725.3 |
| 993.5 |
| 988.3 |
| 901.1 |
| 832.2 |
| |||||||
7. | Earnings |
| $ | 1,057.8 |
| $ | 1,187.3 |
| $ | 1,526.4 |
| $ | 1,553.5 |
| $ | 2,116.7 |
| $ | 2,287.1 |
| $ | 2,021.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
8. | Interest expense |
| $ | 91.8 |
| $ | 87.7 |
| $ | 118.0 |
| $ | 110.3 |
| $ | 115.3 |
| $ | 86.0 |
| $ | 77.8 |
|
9. | Interest factor of rental expense |
| 5.0 |
| 6.6 |
| 6.7 |
| 8.8 |
| 12.3 |
| 11.1 |
| 7.0 |
| |||||||
10. | Preferred stock dividends by registrant |
| 24.7 |
| 24.7 |
| 33.0 |
| 33.0 |
| 33.0 |
| 33.0 |
| 17.7 |
| |||||||
11. | Fixed charges before interest credited on investment products |
| 121.5 |
| 119.0 |
| 157.7 |
| 152.1 |
| 160.6 |
| 130.1 |
| 102.5 |
| |||||||
12. | Interest credited on investment products |
| 449.4 |
| 560.9 |
| 725.3 |
| 993.5 |
| 988.3 |
| 901.1 |
| 832.2 |
| |||||||
13. | Fixed charges |
| $ | 570.9 |
| $ | 679.9 |
| $ | 883.0 |
| $ | 1,145.6 |
| $ | 1,148.9 |
| $ | 1,031.2 |
| $ | 934.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
14. | Ratio of earnings to fixed charges before interest credited on investment products (Line item 5/Line item 11) |
| 5.0 |
| 5.3 |
| 5.1 |
| 3.7 |
| 7.0 |
| 10.7 |
| 11.6 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
15. | Ratio of earnings to fixed charges (Line item 7/Line item 13) |
| 1.9 |
| 1.7 |
| 1.7 |
| 1.4 |
| 1.8 |
| 2.2 |
| 2.2 |
|