The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year.

We use the same accounting policies and procedures to measure segment income (loss) and assets as our consolidated net income and assets. Our chief operating decision maker evaluates segment performance and allocates resources on the basis of “adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders.” We define adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders as income (loss) from continuing operations excluding the

after-tax

effects of income (loss) from continuing operations attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual

non-operating

items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of

non-recourse

funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. We exclude net investment gains (losses) and infrequent or unusual

non-operating

items because we do not consider them to be related to the operating performance of our segments and Corporate and Other activities. A component of our net investment gains (losses) is the result of

estimated future credit losses

, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to our discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions and restructuring costs are also excluded from adjusted operating income (loss) available to

Genworth

Financial, Inc.’s common stockholders because, in our opinion, they are not indicative of overall operating trends. Infrequent or unusual

non-operating

items are also excluded from adjusted operating income (loss) available to

Genworth

Financial, Inc.’s common stockholders if, in our opinion, they are not indicative of overall operating trends.

While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.’s common stockholders in accordance with U.S. GAAP, we believe that adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, and measures that are derived from or incorporate adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. However, the items excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders have occurred in the past and could, and in some cases will, recur in the future. Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders is not a substitute for net income (loss) available to Genworth Financial, Inc.’s common stockholders determined in accordance with U.S. GAAP. In addition, our definition of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders may differ from the definitions used by other companies.

Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income assume a 21% tax rate for our domestic segments and a 30% tax rate for our Australia

Mortgage Insurance segment and are net of the portion attributable to noncontrolling interests. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves.

In January 2020, we paid a

pre-tax

make-whole expense of $9 million related to the early redemption of Genworth Holdings’ senior notes originally scheduled to mature in June 2020 and Rivermont I, our indirect wholly-owned

special purpose consolidated

captive insurance

sub

sidiary

, early redeemed all of its $

315

million outstanding

non-recourse

funding obligations originally due in

2050

resultin

pre-tax

loss of $

million from the

write-off

of deferred borrowing costs. We also repurchased $

million principal amount of

Genworth

Holdings’ senior notes

with

2021

maturity dates

for a

pre-tax

gain of $

million in the first quarter of

2020

. These transactions were excluded from adjusted operating income as they relate to gains (losses) on the early extinguishment of debt.

We recorded a

pre-tax

expense of $1 million and $4 million in the first quarters of 2020 and 2019, respectively, related to restructuring costs as we continue to evaluate and appropriately size our organizational needs and expenses. There were no infrequent or unusual items excluded from adjusted operating income during the periods presented.

The following is a summary of revenues for our segments and Corporate and Other activities for the periods indicated:


	Three months ended March 31,
(Amounts in millions)	2020		2019
Revenues:
U.S. Mortgage Insurance segment	$	261	$	223
Australia Mortgage Insurance segment		27		110
U.S. Life Insurance segment:
Long-term care insurance		1,006		1,114
Life insurance		348		372
Fixed annuities		133		159

U.S. Life Insurance segment		1,487		1,645

Runoff segment		7		82
Corporate and Other activities		55		(16	)

Total revenues	$	1,837	$	2,044

The following tables present the reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income available to Genworth Financial, Inc.’s common stockholders and a summary of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities for the periods indicated:


	Three months ended March 31,
(Amounts in millions)	2020			2019
Net income (loss) available to Genworth Financial, Inc.’s common stockholders	$	(66	)	$	174
Add: net income (loss) from continuing operations attributable to noncontrolling interests		(6	)		20
Add: net income from discontinued operations attributable to noncontrolling interests		—			36

Net income (loss)		(72	)		230
Less: income from discontinued operations, net of taxes		—			62

Income (loss) from continuing operations		(72	)		168
Less: net income (loss) from continuing operations attributable to noncontrolling interests		(6	)		20

Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders		(66	)		148
Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders:
Net investment (gains) losses, net (1)		115			(71	)
Losses on early extinguishment of debt		12			—
Expenses related to restructuring		1			4
Taxes on adjustments		(29	)		14

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders	$	33		$	95

(1)

For the three months ended March 31, 2020 and 2019, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(11) and $(2) million, respectively, and adjusted for net investment gains (losses) attributable to noncontrolling interests of $(26) million and $6 million, respectively.


	Three months ended March 31,
(Amounts in millions)	2020			2019
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders:
U.S. Mortgage Insurance segment	$	148		$	124
Australia Mortgage Insurance segment		9			14
U.S. Life Insurance segment:
Long-term care insurance		1			(20	)
Life insurance		(77	)		(2	)
Fixed annuities		6			17

U.S. Life Insurance segment		(70	)		(5	)

Runoff segment		(13	)		20
Corporate and Other activities		(41	)		(58	)

Adjusted operating income available to Genworth Financial, Inc.’s common stockholders	$	33		$	95

The following is a summary of total assets for our segments and Corporate and Other activities as of the dates indicated:


(Amounts in millions)	March 31, 2020		December 31, 2019
Assets:
U.S. Mortgage Insurance segment	$	4,542	$	4,504
Australia Mortgage Insurance segment		2,146		2,406
U.S. Life Insurance segment		80,564		81,640
Runoff segment		9,502		9,953
Corporate and Other activities		2,090		2,839

Total assets	$	98,844	$	101,342