Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2013

The following table presents the condensed consolidating balance sheet information as of June 30, 2013:


(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Assets
Investments
Fixed maturity securities available-for-sale, at fair value	$	—		$	151		$	58,057		$	(200	)	$	58,008
Equity securities available-for-sale, at fair value		—			—			411			—			411
Commercial mortgage loans		—			—			5,831			—			5,831
Restricted commercial mortgage loans related to securitization entities		—			—			309			—			309
Policy loans		—			—			1,671			—			1,671
Other invested assets		—			54			1,923			(1	)		1,976
Restricted other invested assets related to securitization entities		—			—			392			—			392
Investments in subsidiaries		14,619			15,750			232			(30,601	)		—

Total investments		14,619			15,955			68,826			(30,802	)		68,598

Cash and cash equivalents		—			856			2,757			—			3,613
Accrued investment income		—			—			643			(4	)		639
Deferred acquisition costs		—			—			5,237			—			5,237
Intangible assets		—			—			433			—			433
Goodwill		—			—			867			—			867
Reinsurance recoverable		—			—			17,236			—			17,236
Other assets		1			226			477			—			704
Intercompany notes receivable		1			239			458			(698	)		—
Separate account assets		—			—			9,806			—			9,806
Assets associated with discontinued operations		—			—			443			—			443

Total assets	$	14,621		$	17,276		$	107,183		$	(31,504	)	$	107,576

Liabilities and stockholders’ equity
Liabilities:
Future policy benefits	$	—		$	—		$	33,437		$	—		$	33,437
Policyholder account balances		—			—			24,935			—			24,935
Liability for policy and contract claims		—			—			7,302			—			7,302
Unearned premiums		—			—			4,022			—			4,022
Other liabilities		(1	)		353			4,284			(7	)		4,629
Intercompany notes payable		—			658			240			(898	)		—
Borrowings related to securitization entities		—			—			317			—			317
Non-recourse funding obligations		—			—			2,054			—			2,054
Long-term borrowings		—			4,188			532			—			4,720
Deferred tax liability		(67	)		(705	)		1,141			—			369
Separate account liabilities		—			—			9,806			—			9,806
Liabilities associated with discontinued operations		—			—			83			—			83

Total liabilities		(68	)		4,494			88,153			(905	)		91,674

Stockholders’ equity:
Common stock		1			—			—			—			1
Additional paid-in capital		12,139			9,315			17,659			(26,974	)		12,139
Accumulated other comprehensive income (loss)		3,142			3,103			3,130			(6,233	)		3,142
Retained earnings		2,107			364			(2,977	)		2,613			2,107
Treasury stock, at cost		(2,700	)		—			—			—			(2,700	)

Total Genworth Financial, Inc.’s stockholders’ equity		14,689			12,782			17,812			(30,594	)		14,689
Noncontrolling interests		—			—			1,218			(5	)		1,213

Total stockholders’ equity		14,689			12,782			19,030			(30,599	)		15,902

Total liabilities and stockholders’ equity	$	14,621		$	17,276		$	107,183		$	(31,504	)	$	107,576

The following table presents the condensed consolidating balance sheet information as of December 31, 2012:


(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Assets
Fixed maturity securities available-for-sale, at fair value	$	—		$	151		$	62,210		$	(200	)	$	62,161
Equity securities available-for-sale, at fair value		—			—			518			—			518
Commercial mortgage loans		—			—			5,872			—			5,872
Restricted commercial mortgage loans related to securitization entities		—			—			341			—			341
Policy loans		—			—			1,601			—			1,601
Other invested assets		—			5			3,488			—			3,493
Restricted other invested assets related to securitization entities		—			—			393			—			393
Investments in subsidiaries		16,429			17,725			—			(34,154	)		—

Total investments		16,429			17,881			74,423			(34,354	)		74,379
Cash and cash equivalents		—			843			2,789			—			3,632
Accrued investment income		—			—			719			(4	)		715
Deferred acquisition costs		—			—			5,036			—			5,036
Intangible assets		—			—			366			—			366
Goodwill		—			—			868			—			868
Reinsurance recoverable		—			—			17,230			—			17,230
Other assets		1			294			417			(2	)		710
Intercompany notes receivable		—			254			488			(742	)		—
Separate account assets		—			—			9,937			—			9,937
Assets associated with discontinued operations		—			—			439			—			439

Total assets	$	16,430		$	19,272		$	112,712		$	(35,102	)	$	113,312

Liabilities and stockholders’ equity
Liabilities:
Future policy benefits	$	—		$	—		$	33,505		$	—		$	33,505
Policyholder account balances		—			—			26,262			—			26,262
Liability for policy and contract claims		—			—			7,509			—			7,509
Unearned premiums		—			—			4,333			—			4,333
Other liabilities		1			342			4,901			(5	)		5,239
Intercompany notes payable		—			688			254			(942	)		—
Borrowings related to securitization entities		—			—			336			—			336
Non-recourse funding obligations		—			—			2,066			—			2,066
Long-term borrowings		—			4,203			573			—			4,776
Deferred tax liability		(64	)		(672	)		2,243			—			1,507
Separate account liabilities		—			—			9,937			—			9,937
Liabilities associated with discontinued operations		—			—			61			—			61

Total liabilities		(63	)		4,561			91,980			(947	)		95,531

Stockholders’ equity:
Common stock		1			—			—			—			1
Additional paid-in capital		12,127			9,311			16,777			(26,088	)		12,127
Accumulated other comprehensive income (loss)		5,202			5,100			5,197			(10,297	)		5,202
Retained earnings		1,863			300			(2,535	)		2,235			1,863
Treasury stock, at cost		(2,700	)		—			—			—			(2,700	)

Total Genworth Financial, Inc.’s stockholders’ equity		16,493			14,711			19,439			(34,150	)		16,493
Noncontrolling interests		—			—			1,293			(5	)		1,288

Total stockholders’ equity		16,493			14,711			20,732			(34,155	)		17,781

Total liabilities and stockholders’ equity	$	16,430		$	19,272		$	112,712		$	(35,102	)	$	113,312

Condensed Consolidating Income Statement

The following table presents the condensed consolidating income statement information for the three months ended June 30, 2013:


(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries		Eliminations			Consolidated
Revenues:
Premiums	$	—		$	—		$	1,286	$	—		$	1,286
Net investment income		(1	)		1			824		(3	)		821
Net investment gains (losses)		—			7			14		—			21
Insurance and investment product fees and other		—			—			245		(2	)		243

Total revenues		(1	)		8			2,369		(5	)		2,371

Benefits and expenses:
Benefits and other changes in policy reserves		—			—			1,269		—			1,269
Interest credited		—			—			184		—			184
Acquisition and operating expenses, net of deferrals		10			1			402		—			413
Amortization of deferred acquisition costs and intangibles		—			—			137		—			137
Interest expense		—			79			47		(5	)		121

Total benefits and expenses		10			80			2,039		(5	)		2,124

Income (loss) from continuing operations before income taxes and equity in income of subsidiaries		(11	)		(72	)		330		—			247
Provision (benefit) for income taxes		(5	)		(14	)		92		—			73
Equity in income of subsidiaries		147			194			—		(341	)		—

Income (loss) from continuing operations		141			136			238		(341	)		174
Income (loss) from discontinued operations, net of taxes		—			(9	)		15		—			6

Net income (loss)		141			127			253		(341	)		180
Less: net income attributable to noncontrolling interests		—			—			39		—			39

Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	141		$	127		$	214	$	(341	)	$	141

The following table presents the condensed consolidating income statement information for the three months ended June 30, 2012:


(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Revenues:
Premiums	$	—		$	—		$	1,302		$	—		$	1,302
Net investment income		—			—			849			(3	)		846
Net investment gains (losses)		—			1			(34	)		—			(33	)
Insurance and investment product fees and other		—			—			287			—			287

Total revenues		—			1			2,404			(3	)		2,402

Benefits and expenses:
Benefits and other changes in policy reserves		—			—			1,382			—			1,382
Interest credited		—			—			194			—			194
Acquisition and operating expenses, net of deferrals		2			—			437			—			439
Amortization of deferred acquisition costs and intangibles		—			—			147			—			147
Interest expense		—			84			50			(3	)		131

Total benefits and expenses		2			84			2,210			(3	)		2,293

Income (loss) from continuing operations before income taxes and equity in income of subsidiaries		(2	)		(83	)		194			—			109
Provision (benefit) for income taxes		—			(32	)		59			—			27
Equity in income of subsidiaries		78			150			—			(228	)		—

Income (loss) from continuing operations		76			99			135			(228	)		82
Income from discontinued operations, net of taxes		—			—			27			—			27

Net income (loss)		76			99			162			(228	)		109
Less: net income attributable to noncontrolling interests		—			—			33			—			33

Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	76		$	99		$	129		$	(228	)	$	76

The following table presents the condensed consolidating income statement information for the six months ended June 30, 2013:


(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Revenues:
Premiums	$	—		$	—		$	2,547		$	—		$	2,547
Net investment income		(1	)		1			1,642			(7	)		1,635
Net investment gains (losses)		—			3			(43	)		—			(40	)
Insurance and investment product fees and other		—			—			535			(3	)		532

Total revenues		(1	)		4			4,681			(10	)		4,674

Benefits and expenses:
Benefits and other changes in policy reserves		—			—			2,470			—			2,470
Interest credited		—			—			368			—			368
Acquisition and operating expenses, net of deferrals		10			1			835			—			846
Amortization of deferred acquisition costs and intangibles		—			—			259			—			259
Interest expense		—			159			98			(10	)		247

Total benefits and expenses		10			160			4,030			(10	)		4,190

Income (loss) from continuing operations before income taxes and equity in income of subsidiaries		(11	)		(156	)		651			—			484
Provision (benefit) for income taxes		(5	)		(53	)		207			—			149
Equity in income of subsidiaries		250			316			—			(566	)		—

Income (loss) from continuing operations		244			213			444			(566	)		335
Loss from discontinued operations, net of taxes		—			(14	)		—			—			(14	)

Net income (loss)		244			199			444			(566	)		321
Less: net income attributable to noncontrolling interests		—			—			77			—			77

Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	244		$	199		$	367		$	(566	)	$	244

The following table presents the condensed consolidating income statement information for the six months ended June 30, 2012:


(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries		Eliminations			Consolidated
Revenues:
Premiums	$	—		$	—		$	2,408	$	—		$	2,408
Net investment income		—			—			1,685		(7	)		1,678
Net investment gains (losses)		—			(21	)		25		—			4
Insurance and investment product fees and other		—			(1	)		628		—			627

Total revenues		—			(22	)		4,746		(7	)		4,717

Benefits and expenses:
Benefits and other changes in policy reserves		—			—			2,614		—			2,614
Interest credited		—			—			389		—			389
Acquisition and operating expenses, net of deferrals		5			—			874		—			879
Amortization of deferred acquisition costs and intangibles		—			—			418		—			418
Interest expense		—			153			80		(7	)		226

Total benefits and expenses		5			153			4,375		(7	)		4,526

Income (loss) from continuing operations before income taxes and equity in income of subsidiaries		(5	)		(175	)		371		—			191
Provision (benefit) for income taxes		(1	)		(62	)		105		—			42
Equity in income of subsidiaries		126			275			—		(401	)		—

Income (loss) from continuing operations, net of taxes		122			162			266		(401	)		149
Income from discontinued operations, net of taxes		—			—			39		—			39

Net income (loss)		122			162			305		(401	)		188
Less: net income attributable to noncontrolling interests		—			—			66		—			66

Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	122		$	162		$	239	$	(401	)	$	122

Condensed Consolidating Statement of Comprehensive Income

The following table presents the condensed consolidating comprehensive income statement information for the three months ended June 30, 2013:


(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Net income	$	141		$	127		$	253		$	(341	)	$	180
Other comprehensive income (loss):
Net unrealized gains (losses) on securities not other-than-temporarily impaired		(1,175	)		(1,136	)		(1,212	)		2,307			(1,216	)
Net unrealized gains (losses) on other-than-temporarily impaired securities		26			26			26			(52	)		26
Derivatives qualifying as hedges		(218	)		(218	)		(230	)		448			(218	)
Foreign currency translation and other adjustments		(315	)		(303	)		(352	)		617			(353	)

Total other comprehensive income (loss)		(1,682	)		(1,631	)		(1,768	)		3,320			(1,761	)

Total comprehensive income (loss)		(1,541	)		(1,504	)		(1,515	)		2,979			(1,581	)
Less: comprehensive income attributable to noncontrolling interests		—			—			(40	)		—			(40	)

Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders	$	(1,541	)	$	(1,504	)	$	(1,475	)	$	2,979		$	(1,541	)

The following table presents the condensed consolidating comprehensive income statement information for the three months ended June 30, 2012:


(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Net income	$	76		$	99		$	162		$	(228	)	$	109
Other comprehensive income (loss):
Net unrealized gains (losses) on securities not other-than-temporarily impaired		694			690			697			(1,384	)		697
Net unrealized gains (losses) on other-than-temporarily impaired securities		(5	)		(5	)		(6	)		11			(5	)
Derivatives qualifying as hedges		407			407			407			(814	)		407
Foreign currency translation and other adjustments		(99	)		(87	)		(118	)		185			(119	)

Total other comprehensive income (loss)		997			1,005			980			(2,002	)		980

Total comprehensive income (loss)		1,073			1,104			1,142			(2,230	)		1,089
Less: comprehensive income attributable to noncontrolling interests		—			—			16			—			16

Total comprehensive income (loss)available to Genworth Financial, Inc.’s common stockholders	$	1,073		$	1,104		$	1,126		$	(2,230	)	$	1,073

The following table presents the condensed consolidating comprehensive income statement information for the six months ended June 30, 2013:


(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Net income	$	244		$	199		$	444		$	(566	)	$	321
Other comprehensive income (loss):
Net unrealized gains (losses) on securities not other-than-temporarily impaired		(1,396	)		(1,363	)		(1,429	)		2,755			(1,433	)
Net unrealized gains (losses) on other-than-temporarily impaired securities		52			52			52			(104	)		52
Derivatives qualifying as hedges		(328	)		(328	)		(340	)		668			(328	)
Foreign currency translation and other adjustments		(388	)		(358	)		(456	)		745			(457	)

Total other comprehensive income (loss)		(2,060	)		(1,997	)		(2,173	)		4,064			(2,166	)

Total comprehensive income (loss)		(1,816	)		(1,798	)		(1,729	)		3,498			(1,845	)
Less: comprehensive income attributable to noncontrolling interests		—			—			(29	)		—			(29	)

Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders	$	(1,816	)	$	(1,798	)	$	(1,700	)	$	3,498		$	(1,816	)

The following table presents the condensed consolidating comprehensive income statement information for the six months ended June 30, 2012:


(Amounts in millions)	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Net income	$	122		$	162		$	305		$	(401	)	$	188
Other comprehensive income (loss):
Net unrealized gains (losses) on securities not other-than-temporarily impaired		515			506			512			(1,021	)		512
Net unrealized gains (losses) on other-than-temporarily impaired securities		16			16			16			(32	)		16
Derivatives qualifying as hedges		78			78			79			(157	)		78
Foreign currency translation and other adjustments		(3	)		(5	)		(2	)		7			(3	)

Total other comprehensive income (loss)		606			595			605			(1,203	)		603

Total comprehensive income (loss)		728			757			910			(1,604	)		791
Less: comprehensive income attributable to noncontrolling interests		—			—			63			—			63

Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders	$	728		$	757		$	847		$	(1,604	)	$	728

Condensed Consolidating Statement of Cash Flows

The following table presents the condensed consolidating cash flow statement information for the six months ended June 30, 2013:


	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	244		$	199		$	444		$	(566	)	$	321
Less income from discontinued operations, net of taxes		—			14			—			—			14
Adjustments to reconcile net income to net cash from operating activities:
Equity in income from subsidiaries		(250	)		(316	)		—			566			—
Dividends from subsidiaries		135			150			(285	)		—			—
Amortization of fixed maturity discounts and premiums and limited partnerships		—			—			(40	)		—			(40	)
Net investment losses (gains)		—			(3	)		43			—			40
Charges assessed to policyholders		—			(3	)		(401	)		—			(404	)
Acquisition costs deferred		—			—			(212	)		—			(212	)
Amortization of deferred acquisition costs and intangibles		—			—			259			—			259
Deferred income taxes		(3	)		(46	)		(164	)		—			(213	)
Net increase (decrease) in trading securities, held-for-sale investments and derivative instruments		—			—			35			—			35
Stock-based compensation expense		11			—			6			—			17
Change in certain assets and liabilities:
Accrued investment income and other assets		(1	)		68			(46	)		—			21
Insurance reserves		—			—			1,183			—			1,183
Current tax liabilities		—			(7	)		267			—			260
Other liabilities and other policy-related balances		(4	)		26			(660	)		—			(638	)
Cash from operating activities—discontinued operations		—			(14	)		17			—			3

Net cash from operating activities		132			68			446			—			646

Cash flows from investing activities:
Proceeds from maturities and repayments of investments:
Fixed maturity securities		—			—			2,820			—			2,820
Commercial mortgage loans		—			—			474			—			474
Restricted commercial mortgage loans related to securitization entities		—			—			31			—			31
Proceeds from sales of investments:
Fixed maturity and equity securities		—			—			2,245			—			2,245
Purchases and originations of investments:
Fixed maturity and equity securities		—			—			(4,558	)		—			(4,558	)
Commercial mortgage loans		—			—			(431	)		—			(431	)
Other invested assets, net		—			—			113			—			113
Policy loans, net		—			—			(1	)		—			(1	)
Intercompany notes receivable		(1	)		15			30			(44	)		—
Capital contributions to subsidiaries		(131	)		(1	)		132			—			—
Proceeds from sale of a subsidiary, net of cash transferred		—			—			25			—			25
Cash from investing activities—discontinued operations		—			—			—			—			—

Net cash from investing activities		(132	)		14			880			(44	)		718

Cash flows from financing activities:
Deposits to universal life and investment contracts		—			—			920			—			920
Withdrawals from universal life and investment contracts		—			—			(2,059	)		—			(2,059	)
Redemption and repurchase of non-recourse funding obligations		—			—			(12	)		—			(12	)
Repayment and repurchase of long-term debt		—			(15	)		—			—			(15	)
Repayment of borrowings related to securitization entities		—			—			(32	)		—			(32	)
Repurchase of subsidiary shares		—			—			(21	)		—			(21	)
Dividends paid to noncontrolling interests		—			—			(26	)		—			(26	)
Proceeds from intercompany notes payable		—			(30	)		(14	)		44			—
Other, net		—			(24	)		7			—			(17	)
Cash from financing activities—discontinued operations		—			—			—			—			—

Net cash from financing activities		—			(69	)		(1,237	)		44			(1,262	)

Effect of exchange rate changes on cash and cash equivalents		—			—			(118	)		—			(118	)

Net change in cash and cash equivalents		—			13			(29	)		—			(16	)
Cash and cash equivalents at beginning of period		—			843			2,810			—			3,653

Cash and cash equivalents at end of period		—			856			2,781			—			3,637
Less cash and cash equivalents of discontinued operations at end of period		—			—			24			—			24

Cash and cash equivalents of continuing operations at end of period	$	—		$	856		$	2,757		$	—		$	3,613

The following table presents the condensed consolidating cash flow statement information for the six months ended June 30, 2012:


	Parent Guarantor			Issuer			All Other Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	122		$	162		$	305		$	(401	)	$	188
Less income from discontinued operations, net of taxes		—						(39	)					(39	)
Adjustments to reconcile net income to net cash from operating activities:
Equity in income from subsidiaries		(126	)		(275	)		—			401			—
Dividends from subsidiaries		—			187			(187	)		—			—
Amortization of fixed maturity discounts and premiums and limited partnerships		—			—			(49	)		—			(49	)
Net investment losses (gains)		—			21			(25	)		—			(4	)
Charges assessed to policyholders		—			—			(388	)		—			(388	)
Acquisition costs deferred		—			—			(309	)		—			(309	)
Amortization of deferred acquisition costs and intangibles		—			—			418			—			418
Deferred income taxes		(1	)		(52	)		100			—			47
Net increase (decrease) in trading securities, held- for-sale investments and derivative instruments		—			(19	)		112			—			93
Stock-based compensation expense		5			7			1			—			13
Change in certain assets and liabilities:
Accrued investment income and other assets		—			(34	)		43			—			9
Insurance reserves		—			—			1,001			—			1,001
Current tax liabilities		—			172			(369	)		—			(197	)
Other liabilities and other policy-related balances		—			9			(616	)		2			(605	)
Cash from operating activities—discontinued operations		—			—			42			—			42

Net cash from operating activities		—			178			40			2			220

Cash flows from investing activities:
Proceeds from maturities and repayments of investments:
Fixed maturity securities		—			—			2,366			—			2,366
Commercial mortgage loans		—			—			391			—			391
Restricted commercial mortgage loans related to securitization entities		—			—			25			—			25
Proceeds from sales of investments:
Fixed maturity and equity securities		—			10			2,528			—			2,538
Purchases and originations of investments:
Fixed maturity and equity securities		—			(150	)		(5,436	)		—			(5,586	)
Commercial mortgage loans		—			—			(184	)		—			(184	)
Other invested assets, net		—			30			350			(2	)		378
Policy loans, net		—			—			(70	)		—			(70	)
Proceeds from sale of a subsidiary, net of cash transferred		—			—			77			—			77
Intercompany notes receivable		—			(24	)		50			(26	)		—
Cash from investing activities—discontinued operations		—			(16	)		(25	)		—			(41	)

Net cash from investing activities		—			(150	)		72			(28	)		(106	)

Cash flows from financing activities:
Deposits to universal life and investment contracts		—			—			1,351			—			1,351
Withdrawals from universal life and investment contracts		—			—			(1,506	)		—			(1,506	)
Redemption and repurchase of non-recourse funding obligations		—			—			(567	)		—			(567	)
Proceeds from the issuance of long-term debt		—			361			—			—			361
Repayment and repurchase of long-term debt		—			(222	)		—			—			(222	)
Repayment of borrowings related to securitization entities		—			—			(29	)		—			(29	)
Dividends paid to noncontrolling interests		—			—			(24	)		—			(24	)
Proceeds from intercompany notes payable		—			(50	)		24			26			—
Other, net		—			(24	)		(39	)		—			(63	)
Cash from financing activities—discontinued operations		—			—			(26	)		—			(26	)

Net cash from financing activities		—			65			(816	)		26			(725	)

Effect of exchange rate changes on cash and cash equivalents		—			—			(3	)		—			(3	)

Net change in cash and cash equivalents		—			93			(707	)		—			(614	)
Cash and cash equivalents at beginning of period		—			907			3,581						4,488

Cash and cash equivalents at end of period		—			1,000			2,874			—			3,874
Less cash and cash equivalents of discontinued operations at end of period		—			—			20			—			20

Cash and cash equivalents of continuing operations at end of period	$	—		$	1,000		$	2,854		$	—		$	3,854