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, 2011  	
 	
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 Employees  	
(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 22  	
Exhibit Index – Page 21  	

	
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 Employees as of December 31, 2011 and 2010, 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, 2011 and 2010, 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 conducted 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,  	
2011, 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. Such information is the responsibility of the Plan’s management. The information 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 28, 2012  	

 	
 	
Page 2 of 22  	

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

 	December 31,  	
 	2011  	2010  	
Assets  	 	 	
Investments at fair value:  	 	 	
Unallocated investment options:  	 	 	
Guaranteed interest accounts  	$ 47,258,750  	$ 49,394,988  	
Separate accounts of insurance company  	1,115,226,879  	1,099,709,012  	
Principal Financial Group, Inc. ESOP  	64,178,110  	75,259,838  	
Total invested assets at fair value  	1,226,663,739  	1,224,363,838  	
 	
Receivables:  	 	 	
Contribution receivable from Principal Life Insurance  	 	 	
Company  	2,214  	2,194  	
Contributions receivable from participants  	3,534  	3,528  	
Notes receivable from participants  	21,503,214  	19,871,117  	
Total receivables  	21,508,962  	19,876,839  	
Net assets available for benefits  	$ 1,248,172,701  	$ 1,244,240,677  	
 	
See accompanying notes.  	 	 	

Page 3 of 22  	

	
The Principal Select Savings Plan for Employees  	
	
Statements of Changes in Net Assets Available for Benefits  	

 	For the year ended  	
 	December 31,  	
 	2011  	2010  	
Additions  	 	 	
Investment income:  	 	 	
Interest  	$ 958,515  	$ 1,193,796  	
Dividends  	1,766,675  	1,335,560  	
Net (depreciation) appreciation of investments  	(25,265,101)  	175,195,922  	
Total investment (loss) income  	(22,539,911)  	177,725,278  	
 	
Interest income on notes receivable from participants  	1,121,668  	1,201,136  	
 	
Contributions:  	 	 	
Principal Life Insurance Company  	33,723,431  	32,390,305  	
Employees  	66,217,255  	62,098,514  	
Transfers from affiliated and unaffiliated plans, net  	21,649,669  	–  	
Total contributions  	121,590,355  	94,488,819  	
Total additions  	100,172,112  	273,415,233  	
 	
Deductions  	 	 	
Benefits paid to participants  	95,916,377  	86,214,687  	
Transfers to affiliated and unaffiliated plans, net  	–  	1,171,071  	
Administrative expenses  	323,711  	332,339  	
Total deductions  	96,240,088  	87,718,097  	
Net increase  	3,932,024  	185,697,136  	
 	
Net assets available for benefits at beginning of year  	1,244,240,677  	1,058,543,541  	
Net assets available for benefits at end of year  	$ 1,248,172,701  	$ 1,244,240,677  	
 	
See accompanying notes.  	 	 	

Page 4 of 22  	

	
The Principal Select Savings Plan for Employees  	
	
Notes to Financial Statements	
	
December 31, 2011	

1. Significant Accounting Policies  	
 	
Basis of Accounting  	
 	
The accounting records of The Principal Select Savings Plan for Employees (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, as amended  	
(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 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 22  	

	
The Principal Select Savings Plan for Employees  	
	
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.  	
 	
Recent Accounting Pronouncements  	
 	
In May 2011, the Financial Accounting Standards Board (FASB) issued authoritative guidance  	
that clarifies and changes fair value measurement and disclosure requirements. This guidance  	
expands existing disclosure requirements for fair value measurements and makes other  	
amendments but does not require additional fair value measurements. The amendments are to be  	
applied prospectively and are effective for annual periods beginning after December 15, 2011.  	
Adoption of the guidance is not expected to have a material effect on the Plan’s net assets  	
available for benefits or its changes in net assets available for benefits.  	
 	
In September 2010, the 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 was effective for fiscal years ending after December 15, 2010, and  	
was required to be applied retrospectively.  	

 	
Page 6 of 22  	

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

1. Significant Accounting Policies (continued)  	
 	
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. This guidance was effective for  	
reporting periods beginning after December 15, 2009, except for the requirement to present  	
changes in Level 3 measurements on a gross basis, which was effective on January 1, 2011.  	
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.  	
 	
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 employees of Principal Life or its subsidiaries (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.  	
 	
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.”  	

 	
 	
Page 7 of 22  	

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

2. Description of the Plan (continued)  	
 	
Matching contributions for participants other than 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 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 (except in the case of Roth deferrals) 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, 2011 and 2010, forfeited nonvested account balances totaled  	
$43,413 and $41,454, respectively. In 2011 and 2010, employer contributions were reduced by  	
$1,409,750 and $1,259,764, respectively, from forfeited nonvested accounts.  	
 	
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. The rate for  	
the loans issued in 2011 and 2010 was 5.25%. The notes receivable balance was reduced by  	
$1,639,866 and $1,198,838 in 2011 and 2010, respectively, for terminated participants that  	
received their account balance, net of the outstanding loans, as a benefit distribution.  	

 	
 	
Page 8 of 22  	

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

2. Description of the Plan (continued)  	
 	
Plan Termination  	
 	
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. 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.  	
 	
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, 2011, 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 2008.  	

 	
 	
Page 9 of 22  	

	
The Principal Select Savings Plan for Employees  	
	
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 individual investments that represent 5% or more of the Plan’s net assets  	
available for benefits in 2011 and 2010. Principal Life is a party in interest with respect to these  	
investments.  	

 	December 31  	
 	2011  	2010  	
 	
     Large-Cap Stock Index Separate Account  	$ 137,100,940  	$ 138,471,505  	
     Bond and Mortgage Separate Account  	93,377,684  	85,247,318  	
     Diversified International Separate Account  	87,900,476  	100,006,483  	
     U.S. Property Separate Account  	84,204,454  	68,032,089  	
     Small-Cap Stock Index Separate Account  	76,322,736  	79,740,461  	
     Medium Company Blend Separate Account  	75,486,540  	68,704,871  	
     International Emerging Markets Separate Account  	74,216,829  	94,948,394  	
     Money Market Separate Account  	67,176,915  	63,699,465  	
     Principal Financial Group, Inc. ESOP  	64,178,110  	75,259,838  	

Page 10 of 22  	

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

4. Investments (continued)  	
 	
During 2011 and 2010, the Plan’s investments that are related to Principal Life (depreciated)  	
appreciated in value by $(25,265,101) and $175,195,922, respectively, as follows:  	

  	For the year ended  	
 	December 31,  	
 	2011  	2010  	
 	
Guaranteed interest accounts  	$        199,283  	$                 94,260     	
Separate accounts of insurance company  	(6,971,359)  	153,693,987     	
Principal Financial Group, Inc. ESOP  	(18,493,025)  	21,407,675     	
 	$   (25,265,101)     $        175,195,922     	
 	
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 net asset value (NAV) price.  	
 	
•  	Level 3 – Fair values are based on significant unobservable inputs for the asset. Our  	
 	Level 3 assets are guaranteed interest accounts of the insurance company.  	
 	
Transfers between fair value hierarchy levels are recognized at the beginning of the reporting  	
period.  	 	

 	
 	
 	Page 11 of 22  	

	
The Principal Select Savings Plan for Employees  	
	
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 2011.  	
 	
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  	
 	
This category is designed to deliver safety and stability by preserving principal and accumulating  	
earnings. 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. As of December 31, 2011, all  	
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  	

Page 12 of 22  	

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

NAV of the separate account which is not publicly quoted. There are currently no redemption  	
restrictions on these investments.  	
 	
5. Fair Value of Financial Instruments (continued)  	
 	
One separate account invests in real estate. 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. In 2010, this was categorized as Level 3, as the fund had restrictions on redemption of  	
NAV at the measurement date. In 2011, the withdrawal limitations associated with this separate  	
account were removed and the investments were being redeemed at NAV at the measurement  	
date. Therefore, the fair value of the separate account is based on NAV and is considered a Level  	
2 asset in 2011.  	
 	
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 quoted closing  	
market price on the last business day of the Plan year and is reflected in Level 1.  	
 	
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, 2011	
 	Assets Measured at  	Fair Value Hierarchy Level  	 	
 	Fair Value  	Level 1  	Level 2  	 	Level 3  	
Assets  	 	 	 	 	 	
Guaranteed interest accounts  	$         47,258,750  	$                   –  	$                   –  	$ 47,258,750  	
Separate accounts of insurance company:  	 	 	 	 	 	
Fixed income security  	124,687,109  	–  	124,687,109  	 	–  	
Lifetime balanced asset allocation  	179,567,565  	–  	179,567,565  	 	–  	
Large U.S. equity  	251,562,353  	–  	251,562,353  	 	–  	
Small/Mid U.S. equity  	237,842,809  	–  	237,842,809  	 	–  	
International equity  	162,117,305  	–  	162,117,305  	 	–  	
Short-term fixed income  	67,176,915  	–  	67,176,915  	 	–  	
U.S. real estate  	84,204,454  	–  	84,204,454  	 	–  	
Other  	8,068,369  	–  	8,068,369  	 	–  	
Principal Financial Group, Inc. ESOP  	64,178,110  	64,178,110  	–  	 	–  	
Total invested assets  	$     1,226,663,739  	$     64,178,110  	$ 1,115,226,879  	$ 47,258,750  	

Page 13 of 22  	

							
The Principal Select Savings Plan for Employees	

Notes to Financial Statements (continued)	

 	
 	
5. Fair Value of Financial Instruments (continued)  	 	 	 	 	
 	
 	 	 	As of December 31, 2010  	 	 	
 	Assets Measured at  	 	Fair Value Hierarchy Level	
 	Fair Value  	 	Level 1  	Level 2  	 	Level 3  	
Assets  	 	 	 	 	 	 	
Guaranteed interest accounts  	$ 49,394,988  	$                –  	$                   –  	$ 49,394,988  	
Separate accounts of insurance company:	 	 	 	 	 	 	
Fixed income security  	105,258,341  	 	–  	105,258,341  	 	–  	
Lifetime balanced asset allocation  	169,747,870  	 	–  	169,747,870  	 	–  	
Large U.S. equity  	247,657,740  	 	–  	247,657,740  	 	–  	
Small/Mid U.S. equity  	238,768,265  	 	–  	238,768,265  	 	–  	
International equity  	194,954,877  	 	–  	194,954,877  	 	–  	
Short-term fixed income  	63,699,465  	 	–  	63,699,465  	 	–  	
U.S. real estate  	68,032,089  	 	–  	–  	 	68,032,089  	
Other  	11,590,365  	 	–  	11,590,365  	 	–  	
Principal Financial Group, Inc. ESOP  	75,259,838  	 	75,259,838  	–  	 	–  	
Total invested assets  	$ 1,224,363,838  	$ 75,259,838  	$ 1,031,676,923  	$ 117,427,077  	

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, 2011 and 2010, are  	
as follows:  	

 	 	 	For the year ended December 31, 2011  	 	Changes in 
Unrealized
Gains (Losses)
Included in
Statements of
Changes in Net
Assets
Available for
Benefits
Relating to
Positions Still
Held	
 	 	 	 	 	 	 	 		
 	 	Total Realized/ 
Unrealized
Appreciation
 (Depreciation)	 	 	 	 	Ending Asset 
Balance as of
December 31,
 2011		
 	Beginning Asset 
Balance as of
 January 1, 2011		 	 	 	Transfers in 
(Out) of
 Level 3			
 			 	 	 				
 			Purchases**	Sales**	 				
Assets  	 	 	 	 	 	 	 	 	
Guaranteed interest  	 	 	 	 	 	 	 	 	
      accounts  	$         49,394,988   	$1,157,794  	$15,425,612   	$(18,719,644)  	$           –  	$  47,258,750  	$    199,283  	
U.S. real estate  	68,032,089    	–  	–    	  -  	 	(68,032,089)  	–  	–  	
Total  	$       117,427,077  	$1,157,794  	$15,425,612   	$(18,719,644)	 	$(68,032,089)  	$  47,258,750  	$    199,283  	

Page 14 of 22  	

								
 	The Principal Select Savings Plan for Employees  	 	 	

 	Notes to Financial Statements (continued)  	 	 	

 	
 	
5. Fair Value of Financial Instruments (continued)  	 	 	 	 	

 	 	For the 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	
 		Total Realized/ 
Unrealized
Appreciation
 (Depreciation)	 	 	 	Ending Asset 
Balance as of
December 31,
 2010		
 	Beginning Asset 
Balance as of
 January 1, 2010		 		Transfers 
in (Out) of
 Level 3			
 			 					
 			Purchases**	Sales**  				
Assets  	 	 	 	 	 	 	 	
Guaranteed interest  	 	 	 	 	 	 	 	
          accounts  	$       51,968,974         	$          1,288,052  	$  17,582,015  	$  (21,444,053)  	$  –    	$   49,394,988  	$           94,260   	
U.S. real estate  	70,014,680        	10,084,871  	10,962,867  	(23,030,329)  	–     	68,032,089  	9,717,904   	
Total  	$      121,983,654         	$        11,372,923  	$  28,544,882  	$  (44,474,382)  	$  –    	$  117,427,077  	$       9,812,164   	

**Includes interest, contributions, transfers from affiliated and unaffiliated plans, transfers to other investments via participant direction,  	
benefits paid to participants, and administrative expenses.  	
 	
6. Contingencies  	
 	
Until March 25, 2011, the real estate separate account had a temporary withdrawal limitation  	
related to past turmoil in the credit markets that resulted in a sharp slowdown in the sale of  	
commercial real estate assets over the last several years. 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. The restriction  	
had been in place since September 26, 2008 and ended on March 25, 2011.  	

Page 15 of 22  	

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

6. Contingencies (continued)  	
 	
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 2011 and 2010 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, 2011  	
and 2010.  	

Page 16 of 22  	

		
The Principal Select Savings Plan for Employees  	
		
EIN: 42-0127290            	           Plan Number: 003  	
		
Schedule H, Line 4i – Schedule of Assets  	
(Held at End of Year)	
	
December 31, 2011	

Identity of Issue  	Description of Investment  	Current Value  	
 	
Principal Life Insurance  	 	 	
Company*  	  Deposits in guaranteed interest accounts  	$ 47,258,750  	
 	
Principal Life Insurance          Deposits in insurance company Small-Cap Value II  	 	
Company*  	Separate Account  	15,170,635  	
 	
Principal Life Insurance          Deposits in insurance company Large Company  	 	
Company*  	Growth Separate Account  	40,450,681  	
 	
Principal Life Insurance          Deposits in insurance company Money Market  	 	
Company*  	Separate Account  	67,176,915  	
 	
Principal Life Insurance          Deposits in insurance company U.S. Property  	 	
Company*  	Separate Account  	84,204,454  	
 	
Principal Life Insurance          Deposits in insurance company Bond and Mortgage  	 	
Company*  	Separate Account  	93,377,684  	
 	
Principal Life Insurance          Deposits in insurance company Diversified  	 	
Company*  	International Separate Account  	87,900,476  	
 	
Principal Life Insurance          Deposits in insurance company Large-Cap Stock  	 	
Company*  	Index Separate Account  	137,100,940  	
 	
Principal Life Insurance          Deposits in insurance company Government and High  	 	
Company*  	Quality Bond Separate Account  	20,878,593  	
 	
Principal Life Insurance          Deposits in insurance company Medium Company  	 	
Company*  	Blend Separate Account  	75,486,540  	

Page 17 of 22        	

				
The Principal Select Savings Plan for Employees	
				
 	EIN: 42-0127290  	           Plan Number: 003  	 	
 	
Schedule H, Line 4i – Schedule of Assets	
(Held at End of Year) (continued)	
 	
Identity of Issue  	Description of Investment  	Current Value  	
 	
Principal Life Insurance       Deposits in insurance company International  	 	
Company*  	Emerging Markets Separate Account  	$ 74,216,829  	
 	
Principal Life Insurance       Deposits in insurance company Large Company  	 	
Company*  	Value Separate Account  	16,739,528  	
 	
Principal Life Insurance       Deposits in insurance company Inflation Protection  	 	
Company*  	Separate Account  	 	10,430,832  	
 	
Principal Life Insurance       Deposits in insurance company Partner Large-Cap  	 	
Company*  	Growth I Separate Account  	20,119,304  	
 	
Principal Life Insurance       Deposits in insurance company Lifetime Strategic  	 	
Company*  	Income Separate Account  	7,535,449  	
 	
Principal Life Insurance       Deposits in insurance company Partner Mid-Cap  	 	
Company*  	Growth Separate Account  	36,057,323  	
 	
Principal Life Insurance       Deposits in insurance company Partner Small-Cap  	 	
Company*  	Growth I Separate Account  	34,805,575  	
 	
Principal Life Insurance       Deposits in insurance company Small-Cap Stock  	 	
Company*  	Index Separate Account  	76,322,736  	
 	
Principal Life Insurance       Deposits in insurance company Equity Income  	 	
Company*  	Separate Account  	 	37,151,900  	
 	
Principal Life Insurance       Deposits in insurance company Principal Financial  	 	
Company*  	Group, Inc. Stock Separate Account  	8,068,369  	

Page 18 of 22  	

				
The Principal Select Savings Plan for Employees	
 	EIN: 42-0127290  	         Plan Number: 003  	 	
 	
Schedule H, Line 4i – Schedule of Assets	
(Held at End of Year) (continued)	
 	
Identity of Issue  	Description of Investment  	Current Value  	
 	
Principal Life Insurance       Deposits in insurance company Lifetime 2010  	 	
Company*  	   Separate Account  	 	$ 10,462,959  	
 	
Principal Life Insurance       Deposits in insurance company Lifetime 2020  	 	
Company*  	   Separate Account  	 	43,325,854  	
 	
Principal Life Insurance       Deposits in insurance company Lifetime 2030  	 	
Company*  	   Separate Account  	 	51,828,956  	
 	
Principal Life Insurance       Deposits in insurance company Lifetime 2040  	 	
Company*  	   Separate Account  	 	40,623,253  	
 	
Principal Life Insurance       Deposits in insurance company Lifetime 2050  	 	
Company*  	   Separate Account  	 	25,791,094  	
 	
Principal Financial  	   2,608,866 shares of Principal Financial Group, Inc.  	 	
Group, Inc.*  	ESOP  	 	64,178,110  	
 	
Loans to participants*  	   Notes receivable from participants with interest rates  	 	
 	     ranging from 5.25% to 10.50%  	21,503,214  	
 	 	 	$ 1,248,166,953  	
 	
*Indicates party in interest to the Plan.  	 	 	

Page 19 of 22  	

		
SIGNATURE	
 	
Pursuant to the requirements of the Securities Exchange Act of 1934, the administrator of The  	
Principal Select Savings Plan for Employees has duly caused this annual report to be signed on  	
its behalf by the undersigned hereunto duly authorized.  	
 	
 	THE PRINCIPAL SELECT SAVINGS PLAN FOR  	
 	EMPLOYEES  	
 	by Benefit Plans Administration Committee  	

 	
Date: June 28, 2012  	By /s/ Tammy DeHaai                                                	
 	Tammy DeHaai  	
 	Committee Member  	

 	
 	
 	             Page 20 of 22  	

			
Exhibit Index	
		
The following exhibit is filed herewith:  	 	
			
 	 	Page  	
			
23  	Consent of Ernst & Young LLP  	22  	

 	
 	
 	 	Page 21 of 22  	

	
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-  	
178510) pertaining to The Principal Select Savings Plan for Employees of Principal Financial  	
Group, Inc. of our report dated June 28, 2012, with respect to the financial statements and  	
supplemental schedule of The Principal Select Savings Plan for Employees included in this  	
Annual Report (Form 11-K) for the year ended December 31, 2011, filed with the Securities and  	
Exchange Commission.  	

/s/ Ernst & Young, LLP  	
 	
Des Moines, Iowa  	
June 28, 2012  	

 	
 	
Page 22 of 22