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, 2010  	
 	
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 23  	
 	Exhibit Index - Page 22  	

 
	
Report of Independent Registered Public Accounting Firm	
 	
The Benefit Plans Administration 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, 2010 and 2009, 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, 2010 and 2009, 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, 2010, 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  	
 	
Des Moines, Iowa  	
June 29, 2011  	

                                                                                                   Page 2 of 23  	

			
The Principal Select Savings Plan for Individual Field	
 	
Statements of Net Assets Available for Benefits	

 	December 31  	
 	2010  	2009  	
Assets  	 	 	
Investments at fair value:  	 	 	
   Unallocated investment options:  	 	 	
      Guaranteed interest accounts  	$ 2,057,440  	$ 2,915,965  	
      Separate accounts of insurance company  	134,737,861  	117,701,725  	
   Principal Financial Group, Inc. ESOP  	20,219,564  	16,864,037  	
Total invested assets at fair value  	157,014,865  	137,481,727  	
 	
Receivables:  	 	 	
   Contribution receivable from Principal Life Insurance  	 	 	
      Company  	126,678  	120,897  	
   Contributions receivable from participants  	244,448  	247,592  	
   Notes receivable from participants  	3,100,765  	2,834,515  	
Total receivables  	3,471,891  	3,203,004  	
Net assets available for benefits  	$ 160,486,756  	$ 140,684,731  	
 	
See accompanying notes.  	 	 	

 	
 	
 	 	Page 3 of 23  	

				
The Principal Select Savings Plan for Individual Field	
 	
Statements of Changes in Net Assets Available for Benefits	
 	
 	Year Ended December 31  	
 	2010  	 	2009  	
Additions  	 	 	 	
Investment income:  	 	 	 	
    Interest  	$         47,382  	$      100,375  	
    Dividends  	326,898  	 	337,543  	
Net appreciation of investments  	23,875,530  	 	22,871,270  	
Total investment income  	24,249,810  	 	23,309,188  	
 	
Interest income on notes receivable from participants  	171,306  	 	178,885  	
 	
Contributions:  	 	 	 	
    Principal Life Insurance Company  	3,337,802  	 	3,160,473  	
    Employees  	8,097,279  	 	7,997,111  	
    Transfers from affiliated and unaffiliated plans, net  	1,171,071  	 	536,219  	
Total contributions  	12,606,152  	 	11,693,803  	
Total additions  	37,027,268  	 	35,181,876  	
 	
Deductions  	 	 	 	
Benefits paid to participants  	17,191,049  	 	13,261,029  	
Administrative expenses  	34,194  	 	34,452  	
Total deductions  	17,225,243  	 	13,295,481  	
Net increase  	19,802,025  	 	21,886,395  	
 	
Net assets available for benefits at beginning of year  	140,684,731  	 	118,798,336  	
Net assets available for benefits at end of year  	$ 160,486,756  	$ 140,684,731  	
 	
See accompanying notes.  	 	 	 	

 	
 	
 	 	 	Page 4 of 23  	

	
The Principal Select Savings Plan for Individual Field	
 	
Notes to Financial Statements	
 	
December 31, 2010	
 	
1. Significant Accounting Policies  	
 	
Basis of Accounting  	
 	
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 the Employee Retirement Income Security Act of 1974 (ERISA  	
401(b)) and separate accounts (described in ERISA 3(17)) of 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. Employee Stock Ownership  	
Plan (ESOP), which consists of common stock of Principal Financial Group, Inc., the ultimate  	
parent of Principal Life, is reported at fair value based on 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.  	
 	
Notes Receivable from Participants  	
 	
The notes receivable from participants are reported at their unpaid principal balance plus any  	
accrued but unpaid interest. Interest income on notes receivable from participants is recorded  	
when earned.  	

 	
 	
                                                                                           Page 5 of 23  	

	
The Principal Select Savings Plan for Individual Field	
	
Notes to Financial Statements (continued)	

1. Significant Accounting Policies (continued)  	
	
Payment of Benefits  	
	
Benefits are recorded when paid.  	
	
Risks and Uncertainties  	
	
The Plan invests in various investment securities. Investment securities are exposed to various  	
risks such as interest rate, market volatility 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  	
participants’ account balances and the amounts reported in the statements of net assets available  	
for benefits.  	
	
Use of Estimates  	
	
The preparation of financial statements in conformity with U.S. generally accepted accounting  	
principles requires management to make estimates that affect the amounts reported in the  	
financial statements and accompanying notes and supplemental schedule. Actual results could  	
differ from those estimates.  	
	
Reclassifications  	
	
Certain prior year amounts in the statement of net assets available for benefits and statement of  	
changes in net assets available for benefits have been reclassified to conform to the current year  	
presentation.  	

 	
 	
                                                                                                Page 6 of 23  	

	
The Principal Select Savings Plan for Individual Field	
 	
Notes to Financial Statements (continued)	

 	
 	
1. Significant Accounting Policies (continued)  	
 	
Recent Accounting Pronouncements  	
 	
In September 2010, the Financial Accounting Standards Board (FASB) issued authoritative  	
guidance that requires participant loans to be measured at their unpaid principal balance plus any  	
accrued but unpaid interest and classified as notes receivable from participants. Previously loans  	
were measured at fair value and classified as investments. The guidance is effective for fiscal  	
years ending after December 15, 2010, and is required to be applied retrospectively. The  	
adoption of this guidance did not change the value of participant loans from the amount  	
previously reported as of December 31, 2009. Participant loans have been reclassified to notes  	
receivable from participants as of December 31, 2009.  	
 	
In January 2010, the FASB issued authoritative guidance to clarify certain existing fair value  	
disclosures and require a number of additional disclosures. The guidance 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. The guidance 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, the guidance 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 was effective for reporting periods beginning after December 15, 2009. Since  	
the guidance only affects fair value measurement disclosures, adoption of the guidance did not  	
affect the Plan’s net assets available for benefits or its changes in net assets available for  	
benefits.  	

 	
 	
                                                                                                  Page 7 of 23  	

	
The Principal Select Savings Plan for Individual Field	
 	
Notes to Financial Statements (continued)	
 	
1. Significant Accounting Policies (continued)  	
 	
In September 2009, the FASB issued authoritative guidance for measuring the fair value 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 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 the guidance, 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 the guidance 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 April 2009, the FASB issued authoritative guidance, which provided additional information  	
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. It 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 fair  	
value reporting. The Plan adopted the guidance for the reporting period ended December 31,  	
2009. Adoption of the guidance did not have a material effect on the Plan’s net assets available  	
for benefits or its changes in net assets available for benefits.  	
 	
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).  	
 	
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. The Plan is subject to the provisions of  	
ERISA.  	

 	
 	
                                                                                        Page 8 of 23  	

	
The Principal Select Savings Plan for Individual Field	
 	
Notes to Financial Statements (continued)	

 	
 	
2. Description of the Plan (continued)  	
 	
Contributions  	
 	
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%.  	
 	
Vesting  	
 	
Participants are eligible for immediate entry into the Plan 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.  	
 	
Forfeitures  	
 	
Upon termination of employment participants forfeit their nonvested balances. Forfeited  	
balances of terminated participants’ nonvested accounts are used to reduce Company  	
contributions. At December 31, 2010 and 2009, forfeited nonvested account balances totaled  	
$10,665 and $10,267, respectively. In 2010 and 2009, employer contributions were reduced by  	
$364,643 and $587,648, respectively, from forfeited nonvested accounts.  	

 	
 	
                                                                                              Page 9 of 23  	

	
The Principal Select Savings Plan for Individual Field	
 	
Notes to Financial Statements (continued)	

 	
 	
2. Description of the Plan (continued)  	
 	
Participant Loans  	
 	
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 asset, 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 2010 and 2009 was 5.25%. The notes receivable balance was reduced by  	
$246,458 and $418,015 in 2010 and 2009, respectively, for terminated participants that received  	
their account balance, net of the outstanding loans, as a benefit distribution.  	
 	
Plan Terminations  	
 	
Although it has not expressed any intent to do so, the Company has the right under the Plan to  	
discontinue its contributions at any time and to terminate the Plan subject to the provisions of  	
ERISA. In the event the Plan terminates, participants will become fully vested in their accounts.  	
 	
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 Benefit Plans Administration Committee (BPAC) and the Plan sponsor  	
intend to operate the Plan in conformity with the provisions of the Plan document and the Code.  	
BPAC and the Plan sponsor acknowledge that inadvertent errors may occur in the operation of  	
the Plan. If such inadvertent errors occur, BPAC and the Plan sponsor represent that they 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 10 of 23  	

			
The Principal Select Savings Plan for Individual Field	
 	
Notes to Financial Statements (continued)	

 	
 	
3. Income Tax Status (continued)  	 	 	
 	
Accounting principles generally accepted in the United States require plan management to  	
evaluate uncertain tax positions taken by the Plan. The financial statement effects of a tax  	
position are recognized when the position is more likely than not, based on the technical merits,  	
to be sustained upon examination by the IRS. The plan administrator has analyzed the tax  	
positions taken by the Plan and has concluded that as of December 31, 2010, there are no  	
uncertain positions taken or expected to be taken. The Plan has recognized no interest or  	
penalties related to uncertain tax positions. The Plan is subject to routine audits by taxing  	
jurisdictions. The IRS commenced examination of the Plan for 2008 in August 2010. The plan  	
administrator believes it is no longer subject to income tax examinations for years prior to 2007.  	
 	
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 individual investments that represent 5% or more of the Plan’s net assets  	
available for benefits in 2010 and 2009. Principal Life is a party in interest with respect to these  	
investments.  	 	 	
 	
  	December 31  	
 	   2010  	2009  	
 	
     Principal Financial Group, Inc. ESOP  	                $    20,219,564  	$          16,864,037  	
     International Emerging Markets Separate Account  	                      13,278,081  	11,975,630  	
     Large-Cap Stock Index Separate Account  	                      13,087,429  	*  	
     Money Market Separate Account  	                      12,300,927  	14,835,808  	
     Diversified International Separate Account  	                      12,176,973  	11,132,426  	
     Mid-Cap Blend Separate Account  	                        8,762,768  	7,065,216  	
     U.S. Property Separate Account  	                                        *  	8,133,174  	
	
     *Less than 5% of the fair value of net assets available for benefits at respective date.  	

 	 	Page 11 of 23  	

				
The Principal Select Savings Plan for Individual Field	
 	
Notes to Financial Statements (continued)	

 	
 	
4. Investments (continued)  	 	 	
 	
During 2010 and 2009, the Plan’s investments that are related to Principal Life appreciated  	
(depreciated) in value by $23,875,530 and $22,871,270, respectively, as follows:  	
 	
 	 	Year Ended December 31  	
 	 	2010  	2009  	
 	
     Guaranteed interest accounts  	     $        (5,396)  	$      (10,452)  	
     Separate accounts of insurance company  	               18,262,651  	18,048,529  	
     Principal Financial Group, Inc. ESOP  	                 5,618,275  	4,833,193  	
 	 	           $  23,875,530  	$  22,871,270  	
 	
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 are reflected at the NAV price.  	 	
 	
•  	Level 3 – Fair values are based on significant unobservable inputs for the asset. Our  	
 	Level 3 assets include guaranteed interest accounts and real estate separate accounts of  	
 	the insurance company.  	 	 	
 	
Transfers between fair value hierarchy levels are recognized at the beginning of the reporting  	
period.  	 	 	 	

 	
 	
 	 	                                Page 12 of 23  	

	
The Principal Select Savings Plan for Individual Field	
 	
Notes to Financial Statements (continued)	

 	
 	
5. Fair Value of Financial Instruments (continued)  	
 	
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. There were no significant  	
changes to the valuation processes during 2010.  	
 	
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. The fair value of the  	
guaranteed interest accounts is reflected in Level 3 and the valuation is based on the applicable  	
interest rate. 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. If the applicable interest rate is  	
equal to or less than the interest rate on the account, the fair value is equal to the contract value.  	
 	
Separate Accounts of Insurance Company  	
 	
The 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. Most separate accounts are reflected in  	
Level 2. Several of the separate accounts invest in publicly quoted mutual funds or actively  	
managed stocks. Some of the separate accounts also invest in fixed income securities. The fair  	
value of the underlying mutual funds or stock and of the underlying securities, which is based on  	
quoted prices of similar assets, is used to determine the NAV of the separate account which is  	
not publicly quoted.  	

                                                                                                                  Page 13 of 23  	

	
The Principal Select Savings Plan for Individual Field	
 	
Notes to Financial Statements (continued)	

 	
 	
5. Fair Value of Financial Instruments (continued)  	
 	
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. During 2010 and 2009, this specific separate  	
account had 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 and is reflected in  	
Level 3.  	
 	
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 and is reflected in Level 1.  	

 	
 	
                                                                                                 Page 14 of 23  	

						
The Principal Select Savings Plan for Individual Field	
 	
Notes to Financial Statements (continued)	

 	
 	
5. Fair Value of Financial Instruments (continued)  	 	 	 	
 	
Assets Measured at Fair Value on a Recurring Basis  	 	 	 	
 	
Assets measured at fair value on a recurring basis are summarized below.  	 	 	
 	
 	 	As of December 31, 2010  	 	 	
 	Assets Measured at  	Fair Value Hierarchy Level  	 	
 	Fair Value  	Level 1  	Level 2  	 	Level 3  	
Assets  	 	 	 	 	 	
Guaranteed interest accounts  	$           2,057,440  	$                 –   	$                   –    	$       2,057,440  	
Separate accounts of insurance
       company:  	 	 	 	 	 	
	 	 	 	 	 	
       Fixed income security  	11,342,041  	–  	11,342,041  	 	–  	
       Lifetime balanced asset
              allocation  	 	 	 	 	 	
	                18,932,254  	–  	18,932,254  	 	–  	
       Large U.S. equity  	26,374,194  	–  	26,374,194  	 	–  	
       Small/Mid U.S. equity  	30,542,215  	–  	30,542,215  	 	–  	
       International equity  	25,455,054  	–  	25,455,054  	 	–  	
       Short-term fixed income  	12,300,927  	 	12,300,927  	 	 	
       U.S. real estate  	7,758,549  	–  	–  	 	7,758,549  	
       Other  	2,032,627  	–  	2,032,627  	 	–  	
Principal Financial Group, Inc.  	 	 	 	 	 	
   ESOP  	20,219,564  	20,219,564  	–  	 	–  	
Total invested assets  	$   157,014,865  	$ 20,219,564  	$ 126,979,312  	$       9,815,989  	

 	 	As of December 31, 2009  	 	 	
 	Assets Measured at  	Fair Value Hierarchy Level  	 	
 	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  	6,781,781  	–  	6,781,781  	 	–  	
       Lifetime balanced asset  	 	 	 	 	 	
             allocation  	14,955,713  	–  	14,955,713  	 	–  	
       Large U.S. equity  	23,728,114  	–  	23,728,114  	 	–  	
       Small/Mid U.S. equity  	24,426,885  	–  	24,426,885  	 	–  	
       International equity  	23,108,056  	–  	23,108,056  	 	–  	
       Short-term fixed income  	14,835,808  	–  	14,835,808  	 	–  	
       U.S. real estate  	8,133,174  	–  	–  	 	8,133,174  	
       Other  	1,732,194  	 	1,732,194  	 	 	
Principal Financial Group, Inc.  	 	 	 	 	 	
   ESOP  	16,864,037  	16,864,037  	–  	 	–  	
Total invested assets  	$       137,481,727  	$    16,864,037  	$ 109,568,551  	$    11,049,139  	

 	
 	
 	 	 	 	 	Page 15 of 23  	

	
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, 2010 and 2009, are  	
as follows:  	

  	 	Year Ended December 31, 2010  	 	
Changes in
Unrealized
Gains (Losses)
Included in
Statements of
Changes in
Net Assets
Available for
Benefits
Relating to
Positions Still
Held	
 	 	 	 	 	 		
 	Beginning
Asset Balance
as of
January 1,
2010	Total
Realized/
Unrealized
Appreciation
(Depreciation)	Purchases,
Sales,
Issuances,
and
Settlements
**	 	 		
 				 	Ending Asset
Balance as of
December 31,
2010		
 				Transfers in
(Out) of
Level 3			

Assets  	 	 	 	 	 	 	
Guaranteed interest accounts  	$ 2,915,965  	$ 41,985  	$ (900,510)  	$ –  	$ 2,057,440  	$       (5,396)  	
U.S. real estate  	  8,133,174  	1,173,728  	(1,548,353)  	 –  	  7,758,549  	   1,184,804  	
Total  	$ 11,049,139  	$ 1,215,713  	$ (2,448,863)  	$ –  	$ 9,815,989  	$   1,179,408  	
 	
  	 	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	
 	 	 	 	 	 		
 	Beginning
Asset Balance
as of
January 1,
2009	Total
Realized/
Unrealized
Appreciation
(Depreciation)	Purchases,
Sales,
Issuances,
and
Settlements
**	 	 		
 				 	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)  	
Total  	$ 14,737,343  	$ (3,495,426)  	$ (192,778)  	$ –  	$11,049,139  	$ (3,640,567)  	
 	
**Includes contributions, transfers from affiliated and unaffiliated plans, transfers to other investments via participant direction, benefits  	
paid to participants, and administrative expenses.  	 	 	 	 	 	

 	
 	
 	 	 	 	 	 	Page 16 of 23  	

	
The Principal Select Savings Plan for Individual Field	
 	
Notes to Financial Statements (continued)	

 	
 	
6. Contingencies  	
 	
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 for the real estate  	
separate account. Certain high need payments, such as death, disability, certain eligible  	
retirements, and hardship withdrawals, were not subject to the withdrawal limitation. Other  	
withdrawal requests were subject to the limitation until certain liquidity levels were achieved,  	
mainly via proceeds from sales of underlying properties, rents from tenants and new investor  	
contributions. With the inception of the withdrawal limitation, all sources of cash were 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 were paid in multiple payments. Except for certain de minimis payments, payments  	
were 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. In October 2010, the queue was completely distributed with regular  	
payments occurring approximately every three weeks. The restriction had been in place since  	
September 26, 2008, and ended on March 25, 2011.  	
 	
While the outcome of any future litigation or regulatory matter cannot be predicted, management  	
does not believe that any future litigation or regulatory matter will have a material adverse effect  	
on our net assets available for benefits. The outcome of such matters is always uncertain, and  	
unforeseen results can occur. It is possible that such outcomes could materially affect net assets  	
available for benefits in a particular year.  	
 	
7. Related Party Transactions  	
 	
In addition to the transactions with parties-in-interest discussed in Notes 2, 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. These transactions are exempt from  	
the prohibited transactions rules of ERISA. 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 2010 and 2009 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, 2010  	
and 2009.  	

                                                                                               Page 17 of 23  	

				
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, 2010	
	
Identity of Issue  	Description of Investment  	Current Value  	
				
Principal Life  	 	 	 	
  Insurance Company*	Deposits in guaranteed interest accounts	$ 2,057,440 	
			
Principal Life  	Deposits in insurance company Small-Cap Value II  	 	
  Insurance Company*  	   Separate Account  	 	2,595,115  	
			
Principal Life  	Deposits in insurance company Money Market  	 	
  Insurance Company*  	   Separate Account  	 	12,300,927  	
			
Principal Life  	Deposits in insurance company U.S. Property Separate  	 	
  Insurance Company*  	   Account  	 	7,758,549  	
			
Principal Life  	Deposits in insurance company Bond and Mortgage  	 	
  Insurance Company*  	   Separate Account  	 	7,259,661  	
			
Principal Life  	Deposits in insurance company Diversified  	 	
  Insurance Company*  	   International Separate Account  	12,176,973  	
			
Principal Life  	Deposits in insurance company Governmental and  	 	
  Insurance Company*  	   High Quality Bond Separate Account  	3,106,200  	
			
Principal Life  	Deposits in insurance company Mid-Cap Blend  	 	
  Insurance Company*  	   Separate Account  	 	8,762,768  	
				
Principal Life  	Deposits in insurance company Large-Cap Stock Index  	 	
  Insurance Company*  	   Separate Account  	 	13,087,429  	
			
Principal Life  	Deposits in insurance company Inflation Protection  	 	
  Insurance Company*  	   Separate Account  	 	976,180  	

 	
 	 	 	Page 18 of 23  	

				
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) (continued)	
			
Identity of Issue  	Description of Investment  	Current Value  	
			
Principal Life  	Deposits in insurance company Partner Mid-Cap  	 	
Insurance Company*  	   Growth Separate Account  	$ 6,549,987  	
			
Principal Life  	Deposits in insurance company Small-Cap Stock Index  	 	
Insurance Company*  	   Separate Account  	 	7,712,434  	
			
Principal Life  	Deposits in insurance company Large Company  	 	
Insurance Company*  	   Growth Separate Account  	4,790,093  	
			
Principal Life  	Deposit in insurance company International Emerging  	 	
Insurance Company*  	   Markets Separate Account  	13,278,081  	
			
Principal Life  	Deposit in insurance company Principal Financial  	 	
Insurance Company*  	   Group, Inc. Stock Separate Account  	2,032,627  	
			
Principal Life  	Deposits in insurance company Partner Large-Cap  	 	
Insurance Company*  	   Value Separate Account  	3,554,668  	
			
Principal Life  	Deposits in insurance company Lifetime2010 Separate  	 	
Insurance Company*  	   Account  	 	2,280,493  	
			
Principal Life  	Deposits in insurance company Lifetime2020 Separate  	 	
Insurance Company*  	   Account  	 	4,832,800  	
			
Principal Life  	Deposits in insurance company Lifetime2030 Separate  	 	
Insurance Company*  	   Account  	 	5,006,243  	
			
Principal Life  	Deposits in insurance company Lifetime2040 Separate  	 	
Insurance Company*  	   Account  	 	3,383,779  	

 	
 	
 	 	 	Page 19 of 23  	

					
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) (continued)	
			
Identity of Issue  	Description of Investment  	Current Value  	
				
Principal Life  	Deposits in insurance company Lifetime2050 Separate  	 	 	
  Insurance Company*  	   Account  	 	$ 2,046,790  	
				
Principal Life  	Deposits in insurance company Large Company Value  	 	 	
  Insurance Company*  	   Stock Separate Account  	 	1,687,668  	
				
Principal Life  	Deposits in insurance company Partner Large-Cap  	 	 	
  Insurance Company*  	   Growth I Separate Account  	 	3,254,336  	
				
Principal Life  	Deposits in insurance company Lifetime Strategic  	 	 	
  Insurance Company*  	   Income Separate Account  	 	1,382,149  	
				
Principal Life  	Deposits in insurance company Partner Small-Cap  	 	 	
  Insurance Company*  	   Growth I Separate Account  	 	4,921,911  	
				
Principal Financial  	701,499 shares of Principal Financial Group, Inc.  	 	 	
  Group, Inc.*  	   ESOP  	 	 	20,219,564  	
				
Loans to participants*  	Notes receivable from participants with interest rates  	 	 	
 	   ranging from 5.25% to 10.50%  	 	3,100,765  	
 	 	 	$ 160,115,630  	
*Indicates party in interest to the Plan.  	 	 	 	

 	
 	
 	 	 	 	Page 20 of 23  	

 
		
                                                      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, 2011  	By    /s/ Tammy DeHaai                                               	
 	    Tammy DeHaai  	
 	    Committee Member  	

	

	

	

 	
 	                                                 Page 21 of 23  	

 
				
Exhibit Index	
			
The following exhibit is filed herewith:  	 	 	
 	 	 	Page	
23  	Consent of Ernst & Young LLP  	 	2 3  	

	

	

	

	

 	 	 	Page 22 of 23  	

	
                                                                                                      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-  	
156677 ) pertaining to The Principal Select Savings Plan for Individual Field of Principal Financial  	
Group, Inc. of our report dated June 29, 2011, with respect to the financial statements and  	
supplemental schedule of The Principal Select Savings Plan for Individual Field included in this  	
Annual Report (Form 11-K) for the year ended December 31, 2010, filed with the Securities and  	
Exchange Commission.  	

                                                                                             /s/ Ernst & Young, LLP  	

Des Moines, Iowa  	
June 29, 2011  	

	

	

 	
                                                                                                                Page 23 of 23