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Business Segments | 9 Months Ended
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Sep. 30, 2011
Business Segments [Abstract] |
Business Segments | Note 11: Business Segments MBIA manages its activities primarily through three principal business operations: U.S. public finance insurance, structured finance and international insurance, and advisory services. The Company's U.S. public finance insurance business is primarily operated through National, its structured finance and international insurance business is primarily operated through MBIA Corp., and its advisory services business is primarily operated through Cutwater. MBIA also manages certain business activities through its corporate, asset/liability products, and conduit segments. The corporate segment includes revenues and expenses that arise from general corporate activities. Funding programs managed through the asset/liability products and conduit segments are in wind-down. Following is a description of each of the Company's reportable operating segments: U.S. Public Finance Insurance The Company's U.S. public finance insurance segment is principally conducted through National. The financial guarantees issued by National provide unconditional and irrevocable guarantees of the payment of principal of, and interest or other amounts owing on, U.S. public finance insured obligations when due. The obligations are generally not subject to acceleration, except that National may have the right, at its discretion, to accelerate insured obligations upon default or otherwise. National issues financial guarantees for municipal bonds and bonds backed by publicly or privately funded public-purpose projects. Structured Finance and International Insurance The Company's structured finance and international insurance segment is principally conducted through MBIA Corp. The financial guarantees issued by MBIA Corp. provide unconditional and irrevocable guarantees of the payment of principal of, and interest or other amounts owing on, global structured finance and non-U.S. public finance insured obligations when due, or in the event MBIA Corp. has the right, at its discretion, to accelerate insured obligations upon default or otherwise, upon MBIA Corp.'s acceleration. Certain guaranteed investment contracts written by MBIA Inc. are insured by MBIA Corp., and if MBIA Inc. were to have insufficient assets to pay amounts due upon maturity or termination, MBIA Corp. would make such payments. MBIA Corp. issues financial guarantees for municipal bonds, ABS and MBS, investor-owned utility bonds, bonds backed by publicly or privately funded public-purpose projects, bonds issued by sovereign and sub-sovereign entities, and bonds backed by other revenue sources such as corporate franchise revenues. Insured ABS include collateral consisting of a variety of consumer loans, corporate loans and bonds, trade and export receivables, aircraft, equipment and real property leases. Insured MBS include collateral consisting of residential and commercial mortgages. In previous years, MBIA Corp. entered into insured CDS on structured pools of corporate obligations, RMBS and CRE-backed securities and loans. The Company is no longer insuring new credit derivative contracts except for transactions related to the reduction of existing derivative exposure. Advisory Services The advisory services segment primarily consists of the operations of Cutwater-ISC, Cutwater Asset Management Corp. ("Cutwater-AMC"), and Cutwater Asset Management U.K. Limited ("Cutwater-UK"). Cutwater-ISC and Cutwater-AMC provide fee-based asset management services to non-affiliated institutional clients and to MBIA Inc. and its other subsidiaries, as well as portfolio accounting and reporting services. Cutwater-ISC and Cutwater-AMC are Securities and Exchange Commission ("SEC") registered investment advisers. Cutwater-AMC is also a Financial Industry Regulatory Authority member firm. Cutwater-UK provides fee-based asset management services to the Company's foreign insurance affiliates and EAAL, and to third-party institutional clients and investment structures. Cutwater-UK is registered with the Financial Services Authority in the U.K. Wind-down Operations The Company's wind-down operations consist of the asset/liability products and conduit segments. The asset/liability products segment principally consists of the activities of MBIA Investment Management Corp. ("IMC"), GFL and EAAL. IMC, along with MBIA Inc., provided customized investment agreements, guaranteed by MBIA Corp., for bond proceeds and other public funds for such purposes as construction, loan origination, escrow and debt service or other reserve fund requirements. It has also provided customized products for funds that are invested as part of asset-backed or structured product transactions. GFL raises funds through the issuance of MTNs with varying maturities, which are, in turn, guaranteed by MBIA Corp. GFL lends the proceeds of these MTN issuances to MBIA Inc. ("GFL Loans"). MBIA Inc. invests the proceeds of investment agreements and GFL Loans in eligible investments, which consisted of investment grade securities at the time of purchase with a minimum average double-A credit quality rating. MBIA Inc. primarily purchases domestic securities, which are pledged to MBIA Corp. as security for its guarantees on investment agreements and MTNs. Additionally, MBIA Inc. loans a portion of the proceeds from investment agreements and MTNs to EAAL. EAAL primarily purchases foreign assets as permitted under the Company's investment guidelines. The Company's conduit segment administers two Conduits through MBIA Asset Finance, LLC. Assets financed by these Conduits are currently funded by MTNs and liquidity loans. The ratings downgrades of MBIA Corp. have resulted in a substantial reduction of funding activities and the termination and collateralization of certain investment agreements, as well as winding down of existing asset/liability products and conduit obligations. Corporate The Company's corporate segment is a reportable segment and includes revenues and expenses that arise from general corporate activities, such as net investment income, net gains and losses, interest expense on MBIA Inc. debt and general corporate expenses. Segment Results The following tables provide the Company's segment results for the three months ended September 30, 2011 and 2010:
|  | Three Months Ended September 30, 2011 |
In millions |  | U.S. Public Finance Insurance |  |  | Structured Finance and International Insurance |  |  | Advisory Services |  |  | Corporate |  |  | Wind-down Operations |  |  | Eliminations |  |  | Consolidated |
Revenues(1) |  | $ | 181 |  |  | $ | 72 |  |  | $ | 9 |  |  | $ | 1 |  |  | $ | 21 |  |  | $ | - |  |  | $ | 284 |
Realized gains and other settlements on insured derivatives |  |  | - |  |  |  | (53) |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (53) |
Unrealized gains (losses) on insured derivatives |  |  | - |  |  |  | 776 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 776 |
Net gains (losses) on financial instruments at fair value and foreign exchange |  |  | 6 |  |  |  | (12) |  |  |  | - |  |  |  | 8 |  |  |  | 11 |  |  |  | - |  |  |  | 13 |
Net investment losses related to other-than-temporary impairments |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (10) |  |  |  | (1) |  |  |  | - |  |  |  | (11) |
Other net realized gains (losses) |  |  | - |  |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1 |
Revenues of consolidated VIEs |  |  | - |  |  |  | 105 |  |  |  | - |  |  |  | - |  |  |  | 5 |  |  |  | - |  |  |  | 110 |
Inter-segment revenues(2) |  |  | 21 |  |  |  | 25 |  |  |  | 5 |  |  |  | 22 |  |  |  | (4) |  |  |  | (69) |  |  |  | - |
Total revenues |  |  | 208 |  |  |  | 914 |  |  |  | 14 |  |  |  | 21 |  |  |  | 32 |  |  |  | (69) |  |  |  | 1,120 |
Loss and loss adjustment expense |  |  | 10 |  |  |  | 180 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 190 |
Operating expenses |  |  | 10 |  |  |  | 38 |  |  |  | 14 |  |  |  | 24 |  |  |  | 2 |  |  |  | - |  |  |  | 88 |
Interest expense |  |  | - |  |  |  | 33 |  |  |  | - |  |  |  | 14 |  |  |  | 28 |  |  |  | - |  |  |  | 75 |
Expenses of consolidated VIEs |  |  | - |  |  |  | 17 |  |  |  | - |  |  |  | - |  |  |  | 5 |  |  |  | - |  |  |  | 22 |
Inter-segment expenses(2) |  |  | 31 |  |  |  | 33 |  |  |  | 1 |  |  |  | 4 |  |  |  | 6 |  |  |  | (75) |  |  |  | - |
Total expenses |  |  | 51 |  |  |  | 301 |  |  |  | 15 |  |  |  | 42 |  |  |  | 41 |  |  |  | (75) |  |  |  | 375 |
Income (loss) before income taxes |  | $ | 157 |  |  | $ | 613 |  |  | $ | (1) |  |  | $ | (21) |  |  | $ | (9) |  |  | $ | 6 |  |  | $ | 745 |
Identifiable assets |  | $ | 8,015 |  |  | $ | 21,251 |  |  | $ | 53 |  |  | $ | 652 |  |  | $ | 5,556 |  |  | $ | (6,157) | (3) |  | $ | 29,370 |
(1)- | Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements, investment management fees and other fees.
(2)- | Represents intercompany premium income and expense, intercompany asset management fees and expenses, and intercompany interest income and expense pertaining to intercompany receivables and payables.
(3)- | Consists of intercompany reinsurance balances, repurchase agreements and loans.
|  | Three Months Ended September 30, 2010 |
In millions |  | U.S. Public Finance Insurance |  |  | Structured Finance and International Insurance |  |  | Advisory Services |  |  | Corporate |  |  | Wind-down Operations |  |  | Eliminations |  |  | Consolidated |
Revenues(1) |  | $ | 143 |  |  | $ | 89 |  |  | $ | 7 |  |  | $ | 1 |  |  | $ | 25 |  |  | $ | - |  |  | $ | 265 |
Realized gains and other settlements on insured derivatives |  |  | 0 |  |  |  | 552 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 552 |
Unrealized gains (losses) on insured derivatives |  |  | 0 |  |  |  | (1,044) |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (1,044) |
Net gains (losses) on financial instruments at fair value and foreign exchange |  |  | 45 |  |  |  | 145 |  |  |  | 1 |  |  |  | (62) |  |  |  | (117) |  |  |  | - |  |  |  | 12 |
Net investment losses related to other-than-temporary impairments |  |  | - |  |  |  | 0 |  |  |  | - |  |  |  | - |  |  |  | 0 |  |  |  | - |  |  |  | 0 |
Net gains (losses) on extinguishment of debt |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 0 |  |  |  | 10 |  |  |  | - |  |  |  | 10 |
Other net realized gains (losses) |  |  | - |  |  |  | (1) |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (1) |
Revenues of consolidated VIEs |  |  | - |  |  |  | (19) |  |  |  | - |  |  |  | - |  |  |  | 34 |  |  |  | - |  |  |  | 15 |
Inter-segment revenues(2) |  |  | 18 |  |  |  | 19 |  |  |  | 10 |  |  |  | 24 |  |  |  | (5) |  |  |  | (66) |  |  |  | - |
Total revenues |  |  | 206 |  |  |  | (259) |  |  |  | 18 |  |  |  | (37) |  |  |  | (53) |  |  |  | (66) |  |  |  | (191) |
Loss and loss adjustment expense |  |  | 6 |  |  |  | (26) |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (20) |
Operating expenses |  |  | 11 |  |  |  | 31 |  |  |  | 17 |  |  |  | 23 |  |  |  | 2 |  |  |  | - |  |  |  | 84 |
Interest expense |  |  | - |  |  |  | 34 |  |  |  | - |  |  |  | 16 |  |  |  | 31 |  |  |  | - |  |  |  | 81 |
Expenses of consolidated VIEs |  |  | - |  |  |  | 15 |  |  |  | - |  |  |  | - |  |  |  | 5 |  |  |  | - |  |  |  | 20 |
Inter-segment expenses(2) |  |  | 22 |  |  |  | 28 |  |  |  | 2 |  |  |  | 4 |  |  |  | 13 |  |  |  | (69) |  |  |  | - |
Total expenses |  |  | 39 |  |  |  | 82 |  |  |  | 19 |  |  |  | 43 |  |  |  | 51 |  |  |  | (69) |  |  |  | 165 |
Income (loss) before income taxes |  | $ | 167 |  |  | $ | (341) |  |  | $ | (1) |  |  | $ | (80) |  |  | $ | (104) |  |  | $ | 3 |  |  | $ | (356) |
Identifiable assets |  | $ | 8,616 |  |  | $ | 24,321 |  |  | $ | 51 |  |  | $ | 1,308 |  |  | $ | 7,008 |  |  | $ | (8,032) | (3) |  | $ | 33,272 |
(1)- | Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements, investment management fees and other fees.
(2)- | Represents intercompany premium income and expense, intercompany asset management fees and expenses, and intercompany interest income and expense pertaining to intercompany receivables and payables.
(3)- | Consists of intercompany reinsurance balances, repurchase agreements and loans.
The following tables provide the Company's segment results for the nine months ended September 30, 2011 and 2010:
|  | Nine Months Ended September 30, 2011 |
In millions |  | U.S. Public Finance Insurance |  |  | Structured Finance and International Insurance |  |  | Advisory Services |  |  | Corporate |  |  | Wind-down Operations |  |  | Eliminations |  |  | Consolidated |
Revenues(1) |  | $ | 455 |  |  | $ | 253 |  |  | $ | 22 |  |  | $ | 2 |  |  | $ | 70 |  |  | $ | - |  |  | $ | 802 |
Realized gains and other settlements on insured derivatives |  |  | 2 |  |  |  | (601) |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (599) |
Unrealized gains (losses) on insured derivatives |  |  | - |  |  |  | (531) |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (531) |
Net gains (losses) on financial instruments at fair value and foreign exchange |  |  | 24 |  |  |  | 21 |  |  |  | - |  |  |  | 47 |  |  |  | (206) |  |  |  | - |  |  |  | (114) |
Net investment losses related to other-than-temporary impairments |  |  | - |  |  |  | (4) |  |  |  | - |  |  |  | (10) |  |  |  | (30) |  |  |  | - |  |  |  | (44) |
Net gains (losses) on extinguishment of debt |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 24 |  |  |  | 2 |  |  |  | 26 |
Other net realized gains (losses) |  |  | - |  |  |  | 2 |  |  |  | - |  |  |  | - |  |  |  | 4 |  |  |  | - |  |  |  | 6 |
Revenues of consolidated VIEs |  |  | - |  |  |  | 39 |  |  |  | - |  |  |  | - |  |  |  | 25 |  |  |  | - |  |  |  | 64 |
Inter-segment revenues(2) |  |  | 56 |  |  |  | 55 |  |  |  | 24 |  |  |  | 66 |  |  |  | (12) |  |  |  | (189) |  |  |  | - |
Total revenues |  |  | 537 |  |  |  | (766) |  |  |  | 46 |  |  |  | 105 |  |  |  | (125) |  |  |  | (187) |  |  |  | (390) |
Loss and loss adjustment expense |  |  | 4 |  |  |  | 200 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 204 |
Operating expenses |  |  | 36 |  |  |  | 124 |  |  |  | 48 |  |  |  | 67 |  |  |  | 2 |  |  |  | - |  |  |  | 277 |
Interest expense |  |  | - |  |  |  | 99 |  |  |  | - |  |  |  | 44 |  |  |  | 82 |  |  |  | - |  |  |  | 225 |
Expenses of consolidated VIEs |  |  | - |  |  |  | 54 |  |  |  | - |  |  |  | - |  |  |  | 15 |  |  |  | - |  |  |  | 69 |
Inter-segment expenses(2) |  |  | 84 |  |  |  | 91 |  |  |  | 4 |  |  |  | 11 |  |  |  | 24 |  |  |  | (214) |  |  |  | - |
Total expenses |  |  | 124 |  |  |  | 568 |  |  |  | 52 |  |  |  | 122 |  |  |  | 123 |  |  |  | (214) |  |  |  | 775 |
Income (loss) before income taxes |  | $ | 413 |  |  | $ | (1,334) |  |  | $ | (6) |  |  | $ | (17) |  |  | $ | (248) |  |  | $ | 27 |  |  | $ | (1,165) |
Identifiable assets |  | $ | 8,015 |  |  | $ | 21,251 |  |  | $ | 53 |  |  | $ | 652 |  |  | $ | 5,556 |  |  | $ | (6,157) | (3) |  | $ | 29,370 |
(1)- | Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements, investment management fees and other fees.
(2)- | Represents intercompany premium income and expense, intercompany asset management fees and expenses, and intercompany interest income and expense pertaining to intercompany receivables and payables.
(3)- | Consists of intercompany reinsurance balances, repurchase agreements and loans.
|  | Nine Months Ended September 30, 2010 |
In millions |  | U.S. Public Finance Insurance |  |  | Structured Finance and International Insurance |  |  | Advisory Services |  |  | Corporate |  |  | Wind-down Operations |  |  | Eliminations |  |  | Consolidated |
Revenues(1) |  | $ | 459 |  |  | $ | 370 |  |  | $ | 21 |  |  | $ | 3 |  |  | $ | 87 |  |  | $ | - |  |  | $ | 940 |
Realized gains and other settlements on insured derivatives |  |  | 0 |  |  |  | 454 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 454 |
Unrealized gains (losses) on insured derivatives |  |  | 0 |  |  |  | (1,717) |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (1,717) |
Net gains (losses) on financial instruments at fair value and foreign exchange |  |  | 49 |  |  |  | 131 |  |  |  | 2 |  |  |  | (80) |  |  |  | (138) |  |  |  | - |  |  |  | (36) |
Net investment losses related to other-than-temporary impairments |  |  | - |  |  |  | (4) |  |  |  | - |  |  |  | - |  |  |  | (39) |  |  |  | - |  |  |  | (43) |
Net gains (losses) on extinguishment of debt |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 0 |  |  |  | 28 |  |  |  | - |  |  |  | 28 |
Other net realized gains (losses) |  |  | 0 |  |  |  | 18 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | - |  |  |  | 18 |
Revenues of consolidated VIEs |  |  | - |  |  |  | 310 |  |  |  | - |  |  |  | - |  |  |  | 76 |  |  |  | - |  |  |  | 386 |
Inter-segment revenues(2) |  |  | 66 |  |  |  | 69 |  |  |  | 29 |  |  |  | 74 |  |  |  | (15) |  |  |  | (223) |  |  |  | - |
Total revenues |  |  | 574 |  |  |  | (369) |  |  |  | 52 |  |  |  | (3) |  |  |  | (1) |  |  |  | (223) |  |  |  | 30 |
Loss and loss adjustment expense |  |  | 42 |  |  |  | 80 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 122 |
Operating expenses |  |  | 31 |  |  |  | 102 |  |  |  | 45 |  |  |  | 69 |  |  |  | 4 |  |  |  | - |  |  |  | 251 |
Interest expense |  |  | - |  |  |  | 102 |  |  |  | - |  |  |  | 49 |  |  |  | 95 |  |  |  | - |  |  |  | 246 |
Expenses of consolidated VIEs |  |  | - |  |  |  | 46 |  |  |  | - |  |  |  | - |  |  |  | 12 |  |  |  | - |  |  |  | 58 |
Inter-segment expenses(2) |  |  | 74 |  |  |  | 103 |  |  |  | 5 |  |  |  | 10 |  |  |  | 47 |  |  |  | (239) |  |  |  | - |
Total expenses |  |  | 147 |  |  |  | 433 |  |  |  | 50 |  |  |  | 128 |  |  |  | 158 |  |  |  | (239) |  |  |  | 677 |
Income (loss) before income taxes |  | $ | 427 |  |  | $ | (802) |  |  | $ | 2 |  |  | $ | (131) |  |  | $ | (159) |  |  | $ | 16 |  |  | $ | (647) |
Identifiable assets |  | $ | 8,616 |  |  | $ | 24,321 |  |  | $ | 51 |  |  | $ | 1,308 |  |  | $ | 7,008 |  |  | $ | (8,032) | (3) |  | $ | 33,272 |
(1)- | Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements, investment management fees and other fees.
(2)- | Represents intercompany premium income and expense, intercompany asset management fees and expenses, and intercompany interest income and expense pertaining to intercompany receivables and payables.
(3)- | Consists of intercompany reinsurance balances, repurchase agreements and loans.
Premiums on financial guarantees and insured derivatives reported within the Company's insurance segments are generated within and outside the U.S. The following table summarizes premiums earned on financial guarantees and insured derivatives by geographic location of risk for the three and nine months ended September 30, 2011 and 2010:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
In millions |  | 2011 |  |  | 2010 |  |  | 2011 |  |  | 2010 |
Total premiums earned: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 161 |  |  | $ | 133 |  |  | $ | 413 |  |  | $ | 416 |
United Kingdom |  |  | 10 |  |  |  | 5 |  |  |  | 27 |  |  |  | 26 |
Europe (excluding United Kingdom) |  |  | 4 |  |  |  | 4 |  |  |  | 25 |  |  |  | 17 |
Internationally diversified |  |  | 9 |  |  |  | 11 |  |  |  | 27 |  |  |  | 29 |
Central and South America |  |  | 9 |  |  |  | 10 |  |  |  | 28 |  |  |  | 30 |
Asia |  |  | 2 |  |  |  | 4 |  |  |  | 14 |  |  |  | 11 |
Other |  |  | 4 |  |  |  | 2 |  |  |  | 10 |  |  |  | 8 |
Total |  | $ | 199 |  |  | $ | 169 |  |  | $ | 544 |  |  | $ | 537 |
The following tables provide the results of the segments within the wind-down operations for the three months ended September 30, 2011 and 2010:
|  | Three Months Ended September 30, 2011 |
In millions |  | Asset / Liability Products |  |  | Conduits |  |  | Eliminations |  |  | Total Wind- down Operations |
Revenues(1) |  | $ | 23 |  |  | $ | (2) |  |  | $ | - |  |  | $ | 21 |
Net gains (losses) on financial instruments at fair value and foreign exchange |  |  | 11 |  |  |  | - |  |  |  | - |  |  |  | 11 |
Net investment losses related to other-than-temporary impairments |  |  | (1) |  |  |  | - |  |  |  | - |  |  |  | (1) |
Revenues of consolidated VIEs |  |  | (2) |  |  |  | 7 |  |  |  | - |  |  |  | 5 |
Inter-segment revenues(2) |  |  | (3) |  |  |  | (1) |  |  |  | - |  |  |  | (4) |
Total revenues |  |  | 28 |  |  |  | 4 |  |  |  | - |  |  |  | 32 |
Operating expenses |  |  | - |  |  |  | 2 |  |  |  | - |  |  |  | 2 |
Interest expense |  |  | 27 |  |  |  | 1 |  |  |  | - |  |  |  | 28 |
Expenses of consolidated VIEs |  |  | - |  |  |  | 5 |  |  |  | - |  |  |  | 5 |
Inter-segment expenses(2) |  |  | 9 |  |  |  | (3) |  |  |  | - |  |  |  | 6 |
Total expenses |  |  | 36 |  |  |  | 5 |  |  |  | - |  |  |  | 41 |
Income (loss) before income taxes |  | $ | (8) |  |  | $ | (1) |  |  | $ | - |  |  | $ | (9) |
Identifiable assets |  | $ | 3,982 |  |  | $ | 1,574 |  |  | $ | - |  |  | $ | 5,556 |
(1) - Represents the sum of third-party interest income, investment management services fees and other fees. (2) - Represents intercompany asset management fees and expenses plus intercompany interest income and expense.
|  | Three Months Ended September 30, 2010 |
In millions |  | Asset / Liability Products |  |  | Conduits |  |  | Eliminations |  |  | Total Wind- down Operations |
Revenues(1) |  | $ | 24 |  |  | $ | 1 |  |  | $ | - |  |  | $ | 25 |
Net gains (losses) on financial instruments at fair value and foreign exchange |  |  | (117) |  |  |  | - |  |  |  | - |  |  |  | (117) |
Net investment losses related to other-than-temporary impairments |  |  | 0 |  |  |  | - |  |  |  | - |  |  |  | 0 |
Net gains (losses) on extinguishment of debt |  |  | 10 |  |  |  | - |  |  |  | - |  |  |  | 10 |
Revenues of consolidated VIEs |  |  | 15 |  |  |  | 19 |  |  |  | - |  |  |  | 34 |
Inter-segment revenues(2) |  |  | (4) |  |  |  | (1) |  |  |  | 0 |  |  |  | (5) |
Total revenues |  |  | (72) |  |  |  | 19 |  |  |  | 0 |  |  |  | (53) |
Operating expenses |  |  | 1 |  |  |  | 1 |  |  |  | - |  |  |  | 2 |
Interest expense |  |  | 31 |  |  |  | - |  |  |  | - |  |  |  | 31 |
Expenses of consolidated VIEs |  |  | - |  |  |  | 5 |  |  |  | - |  |  |  | 5 |
Inter-segment expenses(2) |  |  | 14 |  |  |  | (1) |  |  |  | 0 |  |  |  | 13 |
Total expenses |  |  | 46 |  |  |  | 5 |  |  |  | 0 |  |  |  | 51 |
Income (loss) before income taxes |  | $ | (118) |  |  | $ | 14 |  |  | $ | - |  |  | $ | (104) |
Identifiable assets |  | $ | 5,539 |  |  | $ | 1,683 |  |  | $ | (214) |  |  | $ | 7,008 |
(1) - Represents the sum of third-party interest income, investment management services fees and other fees. (2) - Represents intercompany asset management fees and expenses plus intercompany interest income and expense. The following tables summarize the segments within the wind-down operations for the nine months ended September 30, 2011 and 2010:
|  | Nine Months Ended September 30, 2011 |
In millions |  | Asset / Liability Products |  |  | Conduits |  |  | Eliminations |  |  | Total Wind- down Operations |
Revenues(1) |  | $ | 70 |  |  | $ | - |  |  | $ | - |  |  | $ | 70 |
Net gains (losses) on financial instruments at fair value and foreign exchange |  |  | (206) |  |  |  | - |  |  |  | - |  |  |  | (206) |
Net investment losses related to other-than-temporary impairments |  |  | (30) |  |  |  | - |  |  |  | - |  |  |  | (30) |
Net gains (losses) on extinguishment of debt |  |  | 24 |  |  |  | - |  |  |  | - |  |  |  | 24 |
Other net realized gains (losses) |  |  | 4 |  |  |  | - |  |  |  | - |  |  |  | 4 |
Revenues of consolidated VIEs |  |  | 10 |  |  |  | 15 |  |  |  | - |  |  |  | 25 |
Inter-segment revenues(2) |  |  | (9) |  |  |  | (3) |  |  |  | - |  |  |  | (12) |
Total revenues |  |  | (137) |  |  |  | 12 |  |  |  | - |  |  |  | (125) |
Operating expenses |  |  | 2 |  |  |  | - |  |  |  | - |  |  |  | 2 |
Interest expense |  |  | 82 |  |  |  | - |  |  |  | - |  |  |  | 82 |
Expenses of consolidated VIEs |  |  | - |  |  |  | 15 |  |  |  | - |  |  |  | 15 |
Inter-segment expenses(2) |  |  | 25 |  |  |  | (1) |  |  |  | - |  |  |  | 24 |
Total expenses |  |  | 109 |  |  |  | 14 |  |  |  | - |  |  |  | 123 |
Income (loss) before income taxes |  | $ | (246) |  |  | $ | (2) |  |  | $ | - |  |  | $ | (248) |
Identifiable assets |  | $ | 3,982 |  |  | $ | 1,574 |  |  | $ | - |  |  | $ | 5,556 |
(1) - Represents the sum of third-party interest income, investment management services fees and other fees. (2) - Represents intercompany asset management fees and expenses plus intercompany interest income and expense.
|  | Nine Months Ended September 30, 2010 |
In millions |  | Asset / Liability Products |  |  | Conduits |  |  | Eliminations |  |  | Total Wind- down Operations |
Revenues(1) |  | $ | 84 |  |  | $ | 3 |  |  | $ | - |  |  | $ | 87 |
Net gains (losses) on financial instruments at fair value and foreign exchange |  |  | (138) |  |  |  | - |  |  |  | - |  |  |  | (138) |
Net investment losses related to other-than-temporary impairments |  |  | (39) |  |  |  | - |  |  |  | - |  |  |  | (39) |
Net gains (losses) on extinguishment of debt |  |  | 28 |  |  |  | - |  |  |  | - |  |  |  | 28 |
Other net realized gains (losses) |  |  | 0 |  |  |  | - |  |  |  | - |  |  |  | 0 |
Revenues of consolidated VIEs |  |  | 36 |  |  |  | 40 |  |  |  | - |  |  |  | 76 |
Inter-segment revenues(2) |  |  | (11) |  |  |  | (3) |  |  |  | (1) |  |  |  | (15) |
Total revenues |  |  | (40) |  |  |  | 40 |  |  |  | (1) |  |  |  | (1) |
Operating expenses |  |  | 3 |  |  |  | 1 |  |  |  | - |  |  |  | 4 |
Interest expense |  |  | 95 |  |  |  | - |  |  |  | - |  |  |  | 95 |
Expenses of consolidated VIEs |  |  | - |  |  |  | 12 |  |  |  | - |  |  |  | 12 |
Inter-segment expenses(2) |  |  | 46 |  |  |  | 2 |  |  |  | (1) |  |  |  | 47 |
Total expenses |  |  | 144 |  |  |  | 15 |  |  |  | (1) |  |  |  | 158 |
Income (loss) before income taxes |  | $ | (184) |  |  | $ | 25 |  |  | $ | - |  |  | $ | (159) |
Identifiable assets |  | $ | 5,539 |  |  | $ | 1,683 |  |  | $ | (214) |  |  | $ | 7,008 |
(1) - Represents the sum of third-party interest income, investment management services fees and other fees. (2) - Represents intercompany asset management fees and expenses plus intercompany interest income and expense.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
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