PRINCIPAL FINANCIAL GROUP INC
For the period ended Dec 31, 2023. Filed Feb 20, 2024.
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FY2023 · Filed Feb 20, 2024
PFG$115.99+0.5%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 8. Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows
| | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|
| · · For the year ended December 31, | |||||||||
| · 2023 · 2022 · 2021 | |||||||||
| · · · · (As recast) · · (As recast) | |||||||||
| · · (in millions) | |||||||||
| Operating activities | | | | | | | | | |
| Net income | | $670.1 | | $4,797.5 | | $1,627.0 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | |
| Net realized capital (gains) losses | | | 72.2 | | | 182.1 | | | (115.4) |
| Net realized capital gains on funds withheld assets | | | (165.0) | | (749.4) | | — | ||
| Change in fair value of funds withheld embedded derivative | | | 1,085.7 | | (3,652.8) | | — | ||
| Depreciation and amortization expense | | | 272.7 | | 295.9 | | 275.3 | ||
| Amortization of deferred acquisition costs and contract costs | | | 428.1 | | 422.4 | | 405.8 | ||
| Additions to deferred acquisition costs and contract costs | | | (429.3) | | | (427.2) | | | (522.1) |
| Amortization of reinsurance loss | | | 17.7 | | | 19.3 | | | 23.0 |
| Market risk benefit remeasurement loss | | | 29.1 | | | 125.3 | | | 98.3 |
| Stock-based compensation | | | 99.4 | | | 91.3 | | | 96.1 |
| Income from equity method investments, net of dividends received | | | (110.2) | | (111.0) | | (189.8) | ||
| Changes in: | | | | | | | | | |
| Accrued investment income | | | (44.1) | | (46.3) | | 13.8 | ||
| Net cash flows for trading securities and equity securities with operating intent | | | (56.0) | | (339.5) | | 99.9 | ||
| Premiums due and other receivables | | | (36.7) | | (3,301.9) | | 8.3 | ||
| Contractholder and policyholder liabilities and dividends | | | 2,562.0 | | 1,914.7 | | 1,430.6 | ||
| Current and deferred income taxes (benefits) | | | (40.5) | | 854.8 | | 117.9 | ||
| Real estate acquired through operating activities | | | (130.8) | | | (164.4) | | | (73.7) |
| Real estate sold through operating activities | | | 164.8 | | 7.9 | | 1.8 | ||
| Funds withheld, net of reinsurance recoverable and deposit receivable | | | (665.2) | | 3,038.6 | | (36.0) | ||
| Other assets and liabilities | | | 214.9 | | 341.5 | | 9.0 | ||
| Other | | | (146.5) | | (125.9) | | (15.4) | ||
| Net adjustments | | | 3,122.3 | | (1,624.6) | | 1,627.4 | ||
| Net cash provided by operating activities | | | 3,792.4 | | 3,172.9 | | 3,254.4 | ||
| Investing activities | | | | | | | | | |
| Fixed maturities available-for-sale and equity securities with intent to hold: | | | | | | | | | |
| Purchases | | | (11,417.0) | | (19,352.6) | | (16,625.5) | ||
| Sales | | | 5,888.3 | | 14,729.7 | | 2,735.3 | ||
| Maturities | | | 5,190.8 | | 6,853.7 | | 10,960.0 | ||
| Mortgage loans acquired or originated | | | (2,044.2) | | (3,731.2) | | (5,223.5) | ||
| Mortgage loans sold or repaid | | | 2,112.0 | | 2,614.6 | | 2,853.2 | ||
| Real estate acquired | | | (187.5) | | | (245.2) | | | (281.4) |
| Real estate sold | | | 132.0 | | 374.0 | | 133.7 | ||
| Net purchases of property and equipment | | | (102.0) | | (116.3) | | (129.9) | ||
| Sale of interests in subsidiaries | | | — | | | — | | | 27.0 |
| Net change in other investments | | | (919.3) | | (68.2) | | (142.6) | ||
| Net cash provided by (used in) investing activities | | | (1,346.9) | | | 1,058.5 | | | (5,693.7) |
| Financing activities | | | | | | | | | |
| Issuance of common stock | | | 57.8 | | | 181.7 | | | 86.7 |
| Accelerated stock repurchase settlement | | | — | | (33.9) | | — | ||
| Acquisition of treasury stock | | | (740.4) | | (1,661.1) | | (937.2) | ||
| Payments for financing element derivatives | | | (42.1) | | (50.6) | | (39.9) | ||
| Purchase of subsidiary shares from noncontrolling interest | | | (2.8) | | (9.2) | | (24.2) | ||
| Dividends to common stockholders | | | (625.5) | | (642.3) | | (654.1) | ||
| Issuance of long-term debt | | | 691.5 | | 15.4 | | — | ||
| Principal repayments of long-term debt | | | (764.0) | | (302.0) | | (1.8) | ||
| Net proceeds from (repayments of) short-term borrowings | | | (18.5) | | 0.9 | | 10.2 | ||
| Investment contract deposits | | | 8,618.9 | | 7,346.7 | | 9,359.8 | ||
| Investment contract withdrawals | | | (9,422.4) | | (7,647.3) | | (8,801.0) | ||
| Net increase (decrease) in banking operation deposits | | | (338.6) | | 1,086.3 | | 2,922.9 | ||
| Other | | | 0.3 | | — | | 0.1 | ||
| Net cash provided by (used in) financing activities | | | (2,585.8) | | (1,715.4) | | 1,921.5 | ||
| Net increase (decrease) in cash and cash equivalents | | | (140.3) | | 2,516.0 | | (517.8) | ||
| Cash and cash equivalents at beginning of period | | | 4,848.0 | | 2,332.0 | | 2,849.8 | ||
| Cash and cash equivalents at end of period | | $4,707.7 | | $4,848.0 | | $2,332.0 | |||
| Supplemental information: | | | | | | | | | |
| Cash paid for interest | | $170.7 | | $175.8 | | $166.1 | |||
| Cash paid for income taxes | | | 68.1 | | | 142.1 | | | 109.9 |
| Supplemental disclosure of non-cash activities: | | | | | | | | | |
| Asset changes resulting from deconsolidation of residential whole loan securitizations: | | | | | | | | | |
| Decrease in mortgage loans | | $(389.7) | | $(220.7) | | $— | |||
| Increase in fixed maturities, available-for-sale | | | 286.2 | | | 167.6 | | | — |
| Increase in fixed maturities, trading | | | 10.8 | | | — | | | — |
| Assets transferred in kind for settlement to reinsurer | | | — | | | (428.5) | | | — |
| Changes from re-designation of other postretirement employee benefits (“OPEB”) plan assets to cover non-retiree benefits: | | | | | | | | | |
| Increases in equity securities re-designated from funded status of OPEB plan | | | — | | | — | | | 548.1 |
| Increases in other investments re-designated from funded status of OPEB plan | | | — | | | — | | | 117.5 |
| Decrease in tax receivable re-designated from funded status of OPEB plan | | | — | | | — | | | (9.1) |
| Decrease in accumulated other comprehensive income (“AOCI”) due to reclassifying excess assets out of funded status of OPEB plan | | | — | | | — | | | 9.1 |
| Decrease in other assets due to reclassifying excess assets out of funded status of OPEB plan | | | — | | | — | | | (665.6) |
| Assets received in kind from pension risk transfer transactions | | | — | | | — | | | 109.5 |
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