Principal Financial (PFG) 11-K Annual report of employee stock purchases

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
[x]	ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
	EXCHANGE ACT OF 1934
For the fiscal year ended: December 31, 2009
OR
[ ]	TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
	EXCHANGE ACT OF 1934
For the transition period from ____________ to ____________
Commission file number: 1-16725
The Principal Select Savings Plan for Individual Field
(Full title of the plan)
Principal Financial Group, Inc.
(Name of Issuer of the securities held pursuant to the plan)
711 High Street
Des Moines, Iowa 50392
(Address of principal executive offices) (Zip Code)
		Page 1 of 21
		Exhibit Index - Page 20

Report of Independent Registered Public Accounting Firm

The Management Resources Committee 

Principal Life Insurance Company 

We have audited the accompanying statements of net assets available for benefits of 

The Principal Select Savings Plan for Individual Field as of December 31, 2009 and 2008, and 

the related statements of changes in net assets available for benefits for the years then ended. 

These financial statements are the responsibility of the Plan’s management. Our responsibility is 

to express an opinion on these financial statements based on our audits. 

We conducted our audits in accordance with auditing standards of the Public Company Accounting 

Oversight Board (United States). Those standards require that we plan and perform the audit to obtain 

reasonable assurance about whether the financial statements are free of material misstatement. We were  

not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audits included 

consideration of internal control over financial reporting as a basis for designing audit 

procedures that are appropriate in the circumstances, but not for the purpose of expressing an 

opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, 

we express no such opinion. An audit also includes examining, on a test basis, evidence 

supporting the amounts and disclosures in the financial statements, assessing the accounting 

principles used and significant estimates made by management, and evaluating the overall 

financial statement presentation. We believe that our audits provide a reasonable basis for our 

opinion. 

In our opinion, the financial statements referred to above present fairly, in all material respects, 

the net assets available for benefits of the Plan at December 31, 2009 and 2008, and the changes 

in its net assets available for benefits for the years then ended, in conformity with U.S. generally 

accepted accounting principles. 

Our audits were performed for the purpose of forming an opinion on the financial statements 

taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of 

December 31, 2009, is presented for purposes of additional analysis and is not a required part of 

the financial statements but is supplementary information required by the Department of Labor’s 

Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income 

Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. 

The supplemental schedule has been subjected to the auditing procedures applied in our audits of 

the financial statements and, in our opinion, is fairly stated in all material respects in relation to 

the financial statements taken as a whole. 

/s/ Ernst & Young LLP 

June 29, 2010 

                                                                                                     Page 2 of 21 

The Principal Select Savings Plan for Individual Field
Statements of Net Assets Available for Benefits
	December 31
	2009		2008
Assets
Investments:
Unallocated investment options at fair value:
Guaranteed interest accounts	$       2,915,965	$     3,613,821
Separate accounts of insurance company	117,701,725		99,359,168
Principal Financial Group, Inc. ESOP	16,864,037		12,871,794
Notes receivable from participants	2,834,515		2,612,545
Total invested assets	140,316,242		118,457,328
Contribution receivable from Principal Life Insurance
Company	120,897		124,766
Contributions receivable from participants	247,592		216,242
Net assets available for benefits	$  140,684,731	$ 118,798,336
See accompanying notes.
			Page 3 of 21

The Principal Select Savings Plan for Individual Field
Statements of Changes in Net Assets Available for Benefits
	Year Ended December 31
	2009		2008
Investment income (loss):
Interest	$         279,260	$       338,597
Dividends	337,543		189,713
Net realized and unrealized appreciation (depreciation) in
aggregate value of investments	22,871,270		(66,596,717)
Total investment income (loss)	23,488,073		(66,068,407)
Contributions:
Principal Life Insurance Company	3,160,473		3,989,907
Employees	7,997,111		9,195,693
Transfers from affiliated and unaffiliated plans, net	536,219		294,917
Total contributions	11,693,803		13,480,517
	35,181,876		(52,587,890)
Deductions:
Benefits paid to participants	13,261,029		16,476,968
Administrative expenses	34,452		30,484
Total deductions	13,295,481		16,507,452
Net increase (decrease)	21,886,395		(69,095,342)
Net assets available for benefits at beginning of year	118,798,336		187,893,678
Net assets available for benefits at end of year	$  140,684,731	$ 118,798,336
See accompanying notes.
			Page 4 of 21

The Principal Select Savings Plan for Individual Field

Notes to Financial Statements

December 31, 2009

1. Significant Accounting Policies 

The accounting records of The Principal Select Savings Plan for Individual Field (the Plan) are 

maintained on the accrual basis of accounting. 

Valuation of Investments 

The unallocated investment options consist of guaranteed interest accounts under a guaranteed 

benefit policy (described in ERISA 401(b)) and separate accounts (described in ERISA 3(17) of 

insurance company; Principal Life Insurance Company (Principal Life). The guaranteed interest 

accounts and separate accounts are reported at fair value as determined by Principal Life. The 

Principal Financial Group Inc. ESOP, which consists of common stock of Principal Financial 

Group, Inc., the ultimate parent of Principal Life, is reported at the quoted closing market price 

of the stock on the last business day of the Plan year. 

These unallocated investment options are non-benefit-responsive and are valued at fair value. 

The guaranteed interest accounts’ fair value is the amount Plan participants would receive 

currently if they were to withdraw or transfer funds within the Plan prior to their maturity for an 

event other than death, disability, termination, or retirement. This fair value represents 

guaranteed interest account values adjusted to reflect current market interest rates only to the 

extent such market rates exceed contract crediting rates. This value represents contributions 

allocated to the guaranteed interest accounts, plus interest at the contractually guaranteed rate, 

less funds used to pay plan benefits and the insurance company’s administrative expenses. The 

separate accounts of insurance company represent contributions invested in pools of domestic 

and international common stocks, high-quality short-term debt securities, real estate, private 

market bonds and mortgages, and high-yield fixed-income securities which are slightly below 

investment grade, all of which are valued at fair value. 

The notes receivable from participants are reported at cost (unpaid balances), which 

approximates fair value. 

Risks and Uncertainties 

The Plan invests in various investment securities. Investment securities are exposed to various 

risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain 

investment securities, it is at least reasonably possible that changes in the values of investment 

securities will occur in the near term and that such changes could materially affect the amounts 

reported in the statements of net assets available for benefits. 

                                                                                                  Page 5 of 21 

The Principal Select Savings Plan for Individual Field

Notes to Financial Statements (continued)

1. Significant Accounting Policies (continued) 

Use of Estimates 

The preparation of financial statements in conformity with U.S. generally accepted accounting 

principles requires management to make estimates and assumptions that affect the amounts 

reported in the financial statements and accompanying notes. Actual results could differ from 

those estimates. 

New Accounting Pronouncements 

In April 2009, the Financial Accounting Standards Board (FASB) issued FASB Staff Position 

157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability 

Have Significantly Decreased and Identifying Transactions That Are Not Orderly (FSP 157-4). 

FSP 157-4 amended FASB Statement No. 157 (codified as Accounting Standards Codification 

(ASC) 820) to provide additional guidance on estimating fair value when the volume and level of 

activity for an asset or liability have significantly decreased in relation to its normal market 

activity. FSP 157-4 also provided additional guidance on circumstances that may indicate that a 

transaction is not orderly and on defining major categories of debt and equity securities to 

comply with the disclosure requirements of ASC 820. The Plan adopted the guidance in FSP 

157-4 for the reporting period ended December 31, 2009. Adoption of FSP 157-4 did not have a 

material effect on the Plan’s net assets available for benefits or its changes in net assets available 

for benefits. 

In September 2009, the FASB issued Accounting Standards Update 2009-12, Investments in 

Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (ASU 2009-12). 

ASU 2009-12 amended ASC 820 to allow entities to use net asset value (NAV) per share (or its 

equivalent), as a practical expedient, to measure fair value when the investment does not have a 

readily determinable fair value and the net asset value is calculated in a manner consistent with 

investment company accounting. The Plan adopted the guidance in ASU 2009-12 for the 

reporting period ended December 31, 2009 and has utilized the practical expedient to measure 

the fair value of investments within the scope of this guidance based on the investment’s NAV. 

In addition, as a result of adopting ASU 2009-12, the Plan has provided additional disclosures 

regarding the nature and risks of investments within the scope of this guidance. Refer to Note 5 

for these disclosures. Adoption of ASU 2009-12 did not have a material effect on the Plan’s net 

assets available for benefits or its changes in net assets available for benefits. 

Page 6 of 21 

The Principal Select Savings Plan for Individual Field

Notes to Financial Statements (continued)

1. Significant Accounting Policies (continued) 

In January 2010, the FASB issued Accounting Standards Update 2010-06, Improving 

Disclosures about Fair Value Measurements, (ASU 2010-06). ASU 2010-06 amended ASC 820 

to clarify certain existing fair value disclosures and require a number of additional disclosures. 

The guidance in ASU 2010-06 clarified that disclosures should be presented separately for each 

“class” of assets and liabilities measured at fair value and provided guidance on how to 

determine the appropriate classes of assets and liabilities to be presented. ASU 2010-06 also 

clarified the requirement for entities to disclose information about both the valuation techniques 

and inputs used in estimating Level 2 and Level 3 fair value measurements. In addition, ASU 

2010-06 introduced new requirements to disclose the amounts (on a gross basis) and reasons for 

any significant transfers between Levels 1, 2 and 3 of the fair value hierarchy and present 

information regarding the purchases, sales, issuances and settlements of Level 3 assets and 

liabilities on a gross basis. With the exception of the requirement to present changes in Level 3 

measurements on a gross basis, which is delayed until 2011, the guidance in ASU 2010-06 

becomes effective for reporting periods beginning after December 15, 2009. 

2. Description of the Plan 

The Plan is a defined contribution plan (401(k) plan) that was established January 1, 1985. The 

Plan is available to substantially all field management and agents holding a Career Agent 

Contract from Principal Life (the Company). On January 1, 2006, Principal Life made several 

changes to the retirement program. Participants who were age 47 or older with at least ten years 

of service on December 31, 2005, could elect to retain the prior benefit provisions under the 

qualified defined benefit retirement Plan and the 401(k) Plan and forgo receipt of the additional 

benefits offered by amendments to Principal Life’s 401(k). The participants who elected to retain 

the prior benefit provisions are referred to as “Grandfathered Choice Participants.” Matching 

contributions for participants other than the Grandfathered Choice Participants were increased 

from 50% to 75% of deferrals, with the maximum matching deferral increasing from 6% to 8%. 

Participants are eligible for immediate entry into the Plan upon contract effective date with 

vesting at 100% after three years. The funds accumulate along with interest and investment 

return and are available for withdrawal by participants at retirement, termination, or when certain 

hardship withdrawal specifications are met. The participants may also obtain loans of their 

vested accrued benefit, subject to certain limitations described in the Plan document. The federal 

and state income taxes of the participant are deferred on the contributions until the funds are 

withdrawn from the Plan. 

Page 7 of 21 

The Principal Select Savings Plan for Individual Field

Notes to Financial Statements (continued)

2. Description of the Plan (continued) 

At December 31, 2009 and 2008, forfeited nonvested account balances totaled $10,267 and 

$105,139, respectively. In 2009 and 2008, employer contributions were reduced by $587,648 and 

$325,054, respectively, from nonvested accounts. 

Although it has not expressed any intent to do so, the Company has the right to terminate the 

Plan subject to the provisions of the Employee Retirement Income Security Act of 1974 

(ERISA). In the event of Plan termination, participants will become fully vested in their 

accounts. 

Information about the Plan agreement, eligibility, and benefit provisions is contained in the 

Summary Plan Description. Copies of the Summary Plan Description are available from the 

Benefit Administration Department or the Intranet. 

3. Income Tax Status 

The Plan has received a determination letter from the Internal Revenue Service (the IRS) dated 

February 28, 2003, stating that the Plan is qualified under Section 401(a) of the Internal Revenue 

Code (the Code), and therefore, the related trust is exempt from taxation. Subsequent to this 

determination by the IRS, the Plan was amended and restated. Once qualified, the Plan is 

required to operate in conformity with the terms of the Plan document and the Code to maintain 

its qualification. The Plan sponsor intends to operate the Plan in conformity with the provisions 

of the Plan document and the Code. The Plan sponsor acknowledges that inadvertent errors may 

occur in the operation of the Plan. If such inadvertent errors occur, the Plan sponsor represents 

that it will take the necessary steps to bring the Plan’s operations into compliance with the Code, 

including voluntarily and timely correcting such errors in accordance with procedures 

established by the IRS. 

Page 8 of 21 

The Principal Select Savings Plan for Individual Field
Notes to Financial Statements (continued)
4. Investments
Contributions are invested in unallocated guaranteed interest accounts supported by the general
account of insurance company (a pooled account invested primarily in fixed income securities
having a range of maturities); in separate accounts of insurance company, the portfolios of which
are primarily invested in domestic and international common stocks, high-quality short-term debt
securities, real estate, private market bonds and mortgages, and high-yield fixed-income
securities which are slightly below investment grade, as appropriate for each separate account;
and The Principal Financial Group Inc. ESOP, which consists of common stock of Principal
Financial Group, Inc., the ultimate parent of Principal Life. Participants elect the investment(s) in
which to have their contributions invested.
The following presents investments that represent 5% or more of the Plan’s net assets available
for benefits in 2009 and 2008. Principal Life is a party in interest with respect to these
investments.
	December 31
	2009	2008
Principal Financial Group, Inc. ESOP	$    16,864,037	$    12,871,794
Money Market Separate Account	14,835,808	15,890,573
International Emerging Markets Separate Account	11,975,630	6,688,312
Diversified International Separate Account	11,132,426	9,140,563
U.S. Property Separate Account	8,133,174	11,123,522
Mid-Cap Blend Separate Account	7,065,216	*
*Less than 5% of the fair value of net assets available for benefits at respective date.
During 2009 and 2008, the Plan’s investments that are related to Principal Life (depreciated)
appreciated in value by $22,871,270 and $(66,596,717), respectively, as follows:
	Year Ended December 31
	2009	2008
Guaranteed interest account	$       (10,452)	$               8,743
Separate accounts of insurance company	18,048,529	(57,703,831)
Principal Financial Group, Inc. ESOP	4,833,193	(8,901,629)
	$   22,871,270	$   (66,596,717)
		Page 9 of 21

The Principal Select Savings Plan for Individual Field
Notes to Financial Statements (continued)
5. Fair Value of Financial Instruments
Valuation Hierarchy
Fair value is defined as the price that would be received to sell an asset in an orderly transaction
between market participants at the measurement date (an exit price). The fair value hierarchy
prioritizes the inputs to valuation techniques used to measure fair value into three levels.
•	Level 1 – Fair values are based on unadjusted quoted prices in active markets for
	identical assets. Our Level 1 assets include the Principal Financial Group, Inc. ESOP.
•	Level 2 – Fair values are based on inputs other than quoted prices within Level 1 that are
	observable for the asset, either directly or indirectly. Our Level 2 assets are separate
	accounts of insurance company and all transactions are being transacted at the NAV price
	at the day of the transaction.
•	Level 3 – Fair values are based on significant unobservable inputs for the asset. Our
	Level 3 assets include guaranteed interest accounts, real estate separate accounts of the
	insurance company, and notes receivable from participants.
Determination of Fair Value
The following discussion describes the valuation methodologies used for assets measured at fair
value on a recurring basis. The techniques utilized in estimating the fair values of financial
instruments are reliant on the assumptions used. Care should be exercised in deriving
conclusions based on the fair value information of financial instruments presented below.
Fair value estimates are made at a specific point in time, based on available market information
and judgments about the financial instrument. Such estimates do not consider the tax impact of
the realization of unrealized gains or losses. In addition, the disclosed fair value may not be
realized in the immediate settlement of the financial instrument. We did not make any significant
changes to our valuation processes during 2009.
	Page 10 of 21

The Principal Select Savings Plan for Individual Field

Notes to Financial Statements (continued)

5. Fair Value of Financial Instruments (continued) 

Guaranteed Interest Accounts 

The guaranteed interest accounts cannot be sold to a third party, thus, the only option to exit the 

guaranteed interest accounts is to withdraw the funds prior to maturity. The fair value of the 

account is the value paid when funds are withdrawn prior to their maturity. If the applicable 

interest rate is greater than the interest rate on the account, the fair value is the contract value 

reduced by a percentage. This percentage is equal to the difference between the applicable 

interest rate and the interest rate on the account, multiplied by the number of years (including 

fractional parts of a year) until the maturity date. 

Separate Accounts of Insurance Company 

Net asset value (NAV) of each of the separate accounts is calculated in a manner consistent with 

U.S. GAAP for investment companies and is determinative of their fair value and represents the 

price at which the Plan would be able to initiate a transaction. Several of the separate accounts 

invest in publicly quoted mutual funds or actively managed stocks. The fair value of the 

underlying mutual funds or stock is used to determine the NAV of the separate account, which is 

not publicly quoted. Some of the separate accounts also invest in fixed income securities. The 

fair value of the underlying securities is based on quoted prices of similar assets and used to 

determine the NAV of the separate account. One separate account invests in real estate, for 

which the fair value of the underlying real estate is based on unobservable inputs and used to 

determine the NAV of the separate account. The fair value of the underlying real estate is 

estimated using discounted cash flow valuation models that utilize public real estate market data 

inputs such as transaction prices, market rents, vacancy levels, leasing absorption, market cap 

rates and discount rates. In addition, each property is appraised annually by an independent 

appraiser. Currently, this specific separate account has a temporary withdrawal limitation related 

to turmoil in the credit markets that resulted in a sharp slowdown in the sale of commercial real 

estate assets. The uncertain environment led to significantly increased requests for withdrawals. 

To allow for orderly administration and management benefiting all separate account investors, 

Principal Life implemented a pre-existing contractual limitation to delay withdrawal requests. 

Currently, certain, high need payments, such as death, disability, certain eligible retirements, and 

hardship withdrawals, are not subject to the withdrawal limitation. Other withdrawal requests are 

subject to the limitation until certain liquidity levels are achieved, mainly via proceeds from sales 

Page 11 of 21 

The Principal Select Savings Plan for Individual Field

Notes to Financial Statements (continued)

5. Fair Value of Financial Instruments (continued) 

of underlying properties, rents from tenants and new investor contributions. Since the inception 

of the withdrawal limitation, all sources of cash are first used to satisfy cash requirements at the 

properties, meet debt maturities, maintain compliance with debt covenants and meet upcoming 

separate account obligations. Outstanding withdrawal requests will be paid in multiple payments. 

Except for certain de minimis payments, payments will be made proportionately among all other 

outstanding withdrawal requests, based upon available liquidity. All withdrawals are being 

transacted at the NAV price at the date of distribution. Currently, there is no estimate of when 

this restriction will end. The restriction has been in place since September 26, 2008. 

Principal Financial Group, Inc. ESOP 

The Principal Financial Group Inc. ESOP, which consists of common stock of Principal 

Financial Group, Inc., the ultimate parent of Principal Life, is reported at the closing quoted 

market price on the last business day of the Plan year. 

Notes Receivable from Participants 

Participant loans are reported at unpaid balances which approximates fair value. There is no 

existing external exit market for these loans as all transactions are restricted to participants. 

These loans cannot be assumed or sold to outside parties. There is no credit risk involved with 

these loans as any participant defaults are deemed taxable distributions to the participant. 

Page 12 of 21 

The Principal Select Savings Plan for Individual Field
Notes to Financial Statements (continued)
5. Fair Value of Financial Instruments (continued)
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets and liabilities measured at fair value on a recurring basis as of 2009 and 2008 are
summarized below.
		As of December 31, 2009
	Assets	Fair Value Hierarchy Level
	Measured at
	Fair Value	Level 1	Level 2	Level 3
Assets
Guaranteed interest accounts	$     2,915,965	$               –	$                   –	$     2,915,965
Separate accounts of
insurance company:
Fixed income security	21,617,589	–	21,617,589	–
Lifetime balanced asset
allocation	14,955,713	–	14,955,713	–
U.S. large cap equity	25,460,308	–	25,460,308	–
U.S. small/mid cap equity	24,426,885	–	24,426,885	–
U.S. real estate	8,133,174	–	–	8,133,174
International equity	23,108,056	–	23,108,056	–
Principal Financial Group,
Inc. ESOP	16,864,037	16,864,037	–	–
Notes receivable from
participants	2,834,515	–	–	2,834,515
Total assets	$ 140,316,242	$ 16,864,037	$109,568,551	$ 13,883,654
		As of December 31, 2008
	Assets	Fair Value Hierarchy Level
	Measured at
	Fair Value	Level 1	Level 2	Level 3
Assets
Guaranteed interest accounts	$     3,613,821	$                  –	$                  –	$          3,613,821
Separate accounts of
insurance company	99,359,168	–	88,235,646	11,123,522
Principal Financial Group,
Inc. ESOP	12,871,794	12,871,794	–	––
Notes receivable from
participants	2,612,545	–	–	2,612,545
Total assets	$  118,457,328	$ 12,871,794	$   88,235,646	$         17,349,888
				Page 13 of 21

The Principal Select Savings Plan for Individual Field
Notes to Financial Statements (continued)
5. Fair Value of Financial Instruments (continued)
Changes in Level 3 Fair Value Measurements
The reconciliation for all assets and liabilities measured at fair value on a recurring basis using
significant unobservable inputs (Level 3) for the years ended December 31, 2009 and 2008, are
as follows:
				Year Ended December 31, 2009				Changes in Unrealized Gains (Losses) Included in Statements of Changes in Net Assets Available for Benefits Relating to Positions Still Held
					Purchases, Sales, Issuances, and Settlements **
	Beginning Asset Balance as of January 1, 2009		Total Realized/ Unrealized Appreciation (Depreciation)
							Ending Asset Balance as of December 31, 2009
						Transfers in (Out) of Level 3
Assets
Guaranteed interest accounts	$       3,613,821		$        89,925		$  (787,781)	$          –	$ 2,915,965	$           (10,452)
U.S. real estate		11,123,522		(3,585,351)	595,003	–	8,133,174	(3,630,115)
Notes receivable from
participants		2,612,545		–	221,970	–	2,834,515	–
Total	$    17,349,888		$   (3,495,426)		$     29,192	$          –	$ 13,883,654	$     (3,640,567)
				Year Ended December 31, 2008				Changes in Unrealized Gains (Losses) Included in Statements of Changes in Net Assets Available for Benefits Relating to Positions Still Held
					Purchases, Sales, Issuances, and Settlements **
	Beginning            Asset Balance             as of             January 1,            2008		Total Realized/ Unrealized Appreciation (Depreciation)
							Ending Asset Balance as of December 31, 2008
						Transfers in (Out) of Level 3
Assets
Guaranteed interest accounts	$        2,813,830		$         116,637		$     683,354	$                 –	$     3,613,821	$               8,743
Separate accounts of insurance
company		15,718,644		(1,668,464)	(2,926,658)	–	11,123,522	(3,269,220)
Notes receivable from
participants		2,766,013		–	(153,468)	–	2,612,545	–
Total	$       21,298,487		$     (1,551,827)		$  (2,396,772)	$                 –	$     17,349,888	$      (3,260,477)
** Includes contributions, transfers from affiliated and unaffiliated plans, transfers to other investments via participant direction, benefits
paid to participants, and administrative expenses.
								Page 14 of 21

The Principal Select Savings Plan for Individual Field

Notes to Financial Statements (continued)

6. Notes Receivable From Participants 

The Plan document provides for loans to active participants, which are considered a participant- 

directed investment of his/her account. The loan is a Plan investment but only the borrowing 

participant’s account shall share in the interest paid on the loan or bear any expense or loss 

incurred because of the loan. The rate of interest is 2% higher than the Federal Reserve “Bank 

Prime Loan” rate at the time of the loan. The rate is set the day a loan is approved, and the rate 

for the loans issued in 2009 and 2008 ranged from 5.25% to 9.25%. The notes receivable balance 

was reduced by $418,015 and $249,692 in 2009 and 2008, respectively, for terminated 

participants that received their account balance, net of the outstanding loans, as a benefit 

distribution. 

7. Transactions With Party in Interest 

In addition to the transactions with parties in interest discussed in Notes 4 and 5, Principal Life 

provides recordkeeping services to the Plan and receives fees, which are paid through revenue 

generated by Plan investments, for those services. Principal Life may pay other Plan expenses 

from time to time. 

8. Form 5500 

Certain line items of net asset additions and deductions in the 2009 and 2008 Forms 5500 differ 

from similar classifications in the accompanying financial statements. However, such differences 

are not considered material and create no differences in net asset balances at December 31, 2009 

and 2008. 

Page 15 of 21 

The Principal Select Savings Plan for Individual Field
	EIN: 42-0127290	Plan Number: 004
Schedule H, Line 4i – Schedule of Assets
(Held at End of Year)
December 31, 2009
Identity of Issue	Description of Investment		Current Value
Principal Life
Insurance Company*	Deposits in guaranteed interest accounts		$ 2,915,965
Principal Life	Deposits in insurance company Small-Cap Value II
Insurance Company*	Separate Account		1,868,875
Principal Life	Deposits in insurance company Money Market
Insurance Company*	Separate Account		14,835,808
Principal Life	Deposits in insurance company U.S. Property Separate
Insurance Company*	Account		8,133,174
Principal Life	Deposits in insurance company Bond and Mortgage
Insurance Company*	Separate Account		5,480,460
Principal Life	Deposits in insurance company Diversified
Insurance Company*	International Separate Account		11,132,426
Principal Life	Deposits in insurance company Governmental and
Insurance Company*	High Quality Bond Separate Account		1,301,321
Principal Life	Deposits in insurance company Medium Company
Insurance Company*	Blend Separate Account		7,065,216
Principal Life	Deposits in insurance company Large-Cap Stock Index
Insurance Company*	Separate Account		6,715,057
Principal Life	Deposits in insurance company Partner Large-Cap
Insurance Company*	Blend I Separate Account		5,786,758
			Page 16 of 21

The Principal Select Savings Plan for Individual Field
	EIN: 42-0127290	Plan Number: 004
Schedule H, Line 4i – Schedule of Assets
(Held at End of Year)
December 31, 2009
Identity of Issue	Description of Investment		Current Value
Principal Life	Deposits in insurance company Partner Mid-Cap
Insurance Company*	Growth Separate Account		$ 5,088,411
Principal Life	Deposits in insurance company Small-Cap Stock Index
Insurance Company*	Separate Account		6,566,044
Principal Life	Deposits in insurance company Large Company
Insurance Company*	Growth Separate Account		4,222,535
Principal Life	Deposit in insurance company International Emerging
Insurance Company*	Markets Separate Account		11,975,630
Principal Life	Deposit in insurance company Principal Financial
Insurance Company*	Group, Inc. Stock Separate Account		1,732,194
Principal Life	Deposits in insurance company Partner Large-Cap
Insurance Company*	Value Separate Account		3,206,153
Principal Life	Deposits in insurance company Lifetime2010 Separate
Insurance Company*	Account		1,454,845
Principal Life	Deposits in insurance company Lifetime2020 Separate
Insurance Company*	Account		4,232,719
Principal Life	Deposits in insurance company Lifetime2030 Separate
Insurance Company*	Account		3,714,729
Principal Life	Deposits in insurance company Lifetime2040 Separate
Insurance Company*	Account		2,911,807
			Page 17 of 21

The Principal Select Savings Plan for Individual Field
	EIN: 42-0127290	Plan Number: 004
Schedule H, Line 4i – Schedule of Assets
(Held at End of Year)
December 31, 2009
Identity of Issue	Description of Investment		Current Value
Principal Life	Deposits in insurance company Lifetime2050 Separate
Insurance Company*	Account		$ 1,624,513
Principal Life	Deposits in insurance company Large Company Value
Insurance Company*	Stock Separate Account			1,326,088
Principal Life	Deposits in insurance company Partner Large-Cap
Insurance Company*	Growth I Separate Account			2,471,523
Principal Life	Deposits in insurance company Lifetime Strategic
Insurance Company*	Income Separate Account			1,017,100
Principal Life	Deposits in insurance company Partner Small-Cap
Insurance Company*	Growth II Separate Account			3,838,339
Principal Financial	701,499 shares of Principal Financial Group, Inc.
Group, Inc.	ESOP			16,864,037
Various participants	Notes receivable from participants with interest rates
	ranging from 5.25% to10.25%			2,834,515
Total invested assets			$ 140,316,242
*Indicates party in interest to the Plan.
				Page 18 of 21

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the administrator of The
Principal Select Savings Plan for Individual Field has duly caused this annual report to be signed
on its behalf by the undersigned hereunto duly authorized.
	THE PRINCIPAL SELECT SAVINGS PLAN FOR
INDIVIDUAL FIELD
	by Benefit Plans Administration Committee
Date: June 29, 2010	By  /s/ Ralph C. Eucher
	Ralph C. Eucher
	Committee Member
	Page 19 of 21

Exhibit Index
The following exhibit is filed herewith:
		Page
23	Consent of Ernst & Young LLP	21
		Page 20 of 21

                                                                                               Exhibit 23 

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the Registration Statement (Form S-8, No. 333- 

72002) pertaining to The Principal Select Savings Plan for Individual Field of Principal Financial 

Group, Inc. of our report dated June 29, 2010, with respect to the financial statements and 

schedule of The Principal Select Savings Plan for Individual Field included in this Annual 

Report (Form 11-K) for the year ended December 31, 2009. 

                                                                         /s/ Ernst & Young, LLP 

Des Moines, Iowa 

June 29, 2010 

Page 21 of 21