PRINCIPAL FINANCIAL GROUP INC
For the period ended Mar 31, 2025. Filed Apr 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 30, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
13.Income Taxes
Effective Income Tax Rate
Our provision for income taxes may not have the customary relationship of taxes to income. A reconciliation between the income tax provision at the U.S. corporate income tax rate and the income tax expense (benefit) at the effective income tax rate was as follows:
| | | | | | | | |
|---|---|---|---|---|---|---|---|
| · · For the three months ended March 31, · | |||||||
| · 2025 · 2024 · | |||||||
| · · · ($ in millions) · | |||||||
| Income before income taxes | | $28.9 | | $627.1 | | ||
| | | | | | | | |
| Expected tax at the U.S. statutory rate | | $6.1 | $131.7 | | |||
| Tax credits | | | (29.6) | | | (16.2) | |
| Dividends received deduction | | | (18.2) | | | (19.4) | |
| Impact of equity method presentation | | | (5.7) | | | (4.7) | |
| Interest exclusion from taxable income | | | (5.2) | | | (5.8) | |
| Employee compensation | | | (3.4) | | | (3.6) | |
| Low income housing tax credit amortization | | | 12.2 | | | 10.6 | |
| Foreign country statutory rate differential | | | 9.6 | | | (2.4) | |
| State income taxes | | | 1.9 | | | 4.7 | |
| Other | | | (1.7) | | | 0.2 | |
| Income taxes (benefits) | | $(34.0) | | $95.1 | | ||
| | | | | | | | |
| Effective income tax rate | | | (118)% | | 15% | ||
The lower effective tax rate for the three months ended March 31, 2025, was primarily the result of a decrease in pre - tax income with no proportionate change in permanent tax differences.
Pillar Two Model Rules
We are currently monitoring global enactments of the Pillar Two model rules proposed by the Organisation for Economic Co-operation and Development, which brings forward a 15% global minimum tax. Generally, a company is required to consider the impact of new tax law on realizability of its deferred tax assets (“DTAs”), including determination of whether a change to its valuation allowance amounts is necessary. We made an accounting policy election to disregard the Pillar Two model rules when evaluating DTAs and rather recognize a current period tax expense when incurred.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.