Non-GAAP financial measure reconciliations
Principal Financial Group, Inc.
(in millions, except as indicated)
| For the year ended Dec. 31 | |||||
|---|---|---|---|---|---|
| 2017 | 2016 | 2015 | 2014 | 2013 | |
| Net income available to common stockholders | |||||
| Net income available to common stockholders | $2,310.4 | $1,316.5 | $1,209.3 | $1,111.1 | $879.7 |
| Net realized capital gains (losses)1 | (307.3) | (37.4) | 133.8 | 100.5 | 179.1 |
| Other after-tax adjustments | (524.5) | 52.0 | (72.6) | 106.3 | 1.1 |
| Operating earnings | $1,478.6 | $1,333.1 | $1,270.5 | $1,317.9 | $1,059.9 |
| 1This is a non-GAAp financial measure. See reconciliation below. | |||||
| Net realized capital gains (losses) | |||||
| Net realized capital gains (losses) | $524.2 | $171.1 | $(51.1) | $14.7 | $(225.2) |
| Recognition of front-end fee revenues | (0.2) | 0.2 | (0.1) | 0.7 | (0.9) |
| Market value adjustments to fee revenues | (0.1) | (2.5) | (1.1) | - | - |
| Net realized capital gains (losses) related to equity method investments | 1.4 | 0.1 | - | - | - |
| Derivative and hedging-related adjustments | (59.4) | (94.1) | (111.7) | (92.8) | (93.9) |
| Sponsored investment fund adjustments | 6.3 | 6.1 | 1.3 | - | - |
| Amortization of deferred acquisition costs | 47.4 | (66.2) | (12.2) | (37.7) | 32.3 |
| Capital gains distributed - operating expenses | (38.9) | 3.7 | 15.4 | (10.6) | (23.6) |
| Amortization of other actuarial balances | 7.6 | (11.2) | (1.8) | (11.6) | 14.8 |
| Market value adjustments of embedded derivatives | 48.1 | 50.0 | (0.2) | 4.8 | 18.4 |
| Capital gains distributed - cost of interest credited | (16.1) | (10.9) | (9.2) | (10.6) | (2.2) |
| Net realized capital gains (losses) tax adjustments | (209.1) | 6.6 | 45.6 | 43.6 | 101.4 |
| Net realized capital gains (losses) attributable to noncontrolling interest, after-tax | (3.9) | (15.5) | (8.8) | (1.0) | (0.2) |
| Net realized capital gains (losses) associated with exited group medical insurance business, after-tax | - | - | 0.1 | - | - |
| Total net realized capital gains (losses), after-tax adjustments | (216.9) | (133.7) | (82.7) | (115.2) | 46.1 |
| Net realized capital gains (losses), as adjusted | $307.3 | $37.4 | $(133.8) | $(100.5) | $(179.1) |
| Diluted earnings per common share | |||||
| Net income | $7.88 | $4.50 | $4.06 | $3.65 | $2.95 |
| Net realized capital (gains) losses | (1.05) | (0.13) | 0.44 | 0.34 | 0.60 |
| Other after-tax adjustments | (1.79) | 0.18 | (0.24) | 0.36 | - |
| Adjustment for redeemable noncontrolling interest | - | - | - | 0.06 | - |
| Non-GAAP operating earnings | $5.04 | $4.55 | $4.26 | $4.41 | $3.55 |
| Stockholders' equity | |||||
| Stockholders' equity | $12,921.9 | $10,293.8 | $9,377.4 | $10,232.0 | $9,777.0 |
| Noncontrolling interest | (72.6) | (66.5) | (65.8) | (48.0) | (92.8) |
| Stockholders' equity attributable to Principal Financial Group, Inc. | 12,849.3 | 10,227.3 | 9,311.6 | 10,184.0 | 9,684.2 |
| Net unrealized capital (gains) losses | (1,455.1) | (827.0) | (715.9) | (1,148.3) | (700.6) |
| Net unrecognized postretirement benefit obligation | 371.1 | 408.4 | 450.2 | 411.1 | 155.9 |
| Preferred stock, at par | - | - | - | (0.1) | (0.1) |
| Paid-in capital - preferred stock | - | - | - | (541.9) | (541.9) |
| Stockholders' equity, x-AOCI other than foreign currency translation adjustment, available to common stockholders | $11,765.3 | $9,808.7 | $9,045.9 | $8,904.8 | $8,597.5 |
| Net income ROE available to common stockholders (including AOCI) | |||||
| Net income ROE available to common stockholders (including AOCI) | 20.0% | 13.5% | 12.8% | 11.8% | 9.6% |
| Net unrealized capital gains (losses) | 2.1% | 1.1% | 1.3% | 1.2% | 1.2% |
| Net unrecongnized postretirement benefit obligation | -0.7% | -0.6% | -0.6% | -0.3% | -0.4% |
| Net income ROE available to common stockholders ( x-AOCI, other than foreign currency translation adjustment) |
21.4% | 14.0% | 13.5% | 12.7% | 10.4% |
| Net realized capital (gains) losses | -2.8% | -0.5% | 1.5% | 1.2% | 2.1% |
| Other after-tax adjustment | -4.9% | 0.6% | -0.8% | 1.2% | 0.0% |
| Operating earnings ROE (x-AOCI, other than foreign currency translation adjustment) |
13.7% | 14.1% | 14.2% | 15.1% | 12.5% |