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Schedule II | 12 Months Ended
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Dec. 31, 2011
Schedule II - Condensed Financial Information [Abstract] |
Schedule II - Condensed Financial Information [Abstract] | SCHEDULE II MBIA INC. (PARENT COMPANY) CONDENSED BALANCE SHEETS (In millions, except per share amounts)
|  | December 31, 2011 |  |  | December 31, 2010 |
Assets |  |  |  |  |  |  |  |
Investments: |  |  |  |  |  |  |  |
Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $1,989 and $2,988) |  | $ | 1,809 |  |  | $ | 2,436 |
Investments held-to-maturity, at amortized cost (fair value $0 and $55) |  |  | — |  |  |  | 59 |
Fixed-maturity securities at fair value |  |  | 96 |  |  |  | 18 |
Investments pledged as collateral, at fair value (amortized cost $623 and $548) |  |  | 543 |  |  |  | 552 |
Short-term investments held as available-for-sale, at fair value (amortized cost $648 and $992) |  |  | 643 |  |  |  | 985 |
Other investments |  |  | 83 |  |  |  | 183 |
Total |  |  | 3,174 |  |  |  | 4,233 |
Cash and cash equivalents |  |  | 132 |  |  |  | 83 |
Accrued investment income |  |  | 20 |  |  |  | 23 |
Investment in wholly-owned subsidiaries |  |  | 3,410 |  |  |  | 4,640 |
Affiliate loan receivable |  |  | — |  |  |  | 128 |
Derivative assets |  |  | 2 |  |  |  | 4 |
Current income taxes |  |  | 31 |  |  |  | 156 |
Deferred income taxes, net |  |  | 114 |  |  |  | 134 |
Receivable for investments sold |  |  | 14 |  |  |  | 8 |
Other assets |  |  | 70 |  |  |  | 41 |
Total assets |  | $ | 6,967 |  |  | $ | 9,450 |
Liabilities and Shareholders' Equity |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |
Investment agreements |  | $ | 1,523 |  |  | $ | 1,940 |
Medium-term notes |  |  | 50 |  |  |  | 45 |
Securities sold under agreements to repurchase |  |  | 669 |  |  |  | 1,502 |
Short-term debt |  |  | — |  |  |  | 65 |
Long-term debt |  |  | 900 |  |  |  | 905 |
Affiliate loans payable |  |  | 1,688 |  |  |  | 1,776 |
Derivative liabilities |  |  | 356 |  |  |  | 241 |
Other liabilities |  |  | 81 |  |  |  | 111 |
Total liabilities |  |  | 5,267 |  |  |  | 6,585 |
Shareholders' Equity: |  |  |  |  |  |  |  |
Preferred stock, par value $1 per share; authorized shares—10,000,000; issued and outstanding shares—none |  |  | — |  |  |  | — |
Common stock, par value $1 per share; authorized shares—400,000,000; issued shares—274,896,162 and 274,719,578 |  |  | 275 |  |  |  | 275 |
Additional paid-in capital |  |  | 3,072 |  |  |  | 3,064 |
Retained earnings |  |  | 805 |  |  |  | 2,209 |
Accumulated other comprehensive loss, net of deferred tax of $134 and $222 |  |  | (176) |  |  |  | (458) |
Treasury stock, at cost—81,752,966 and 74,973,978 shares |  |  | (2,276) |  |  |  | (2,225) |
Total shareholders' equity |  |  | 1,700 |  |  |  | 2,865 |
Total liabilities and shareholders' equity |  | $ | 6,967 |  |  | $ | 9,450 |
The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the accompanying notes. SCHEDULE II MBIA INC. (PARENT COMPANY) CONDENSED STATEMENTS OF OPERATIONS (In millions)
|  | Years Ended December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  | $ | 90 |  |  | $ | 122 |  |  | $ | 220 |
Net gains (losses) on financial instruments at fair value and foreign exchange |  |  | (278) |  |  |  | (117) |  |  |  | 102 |
Investment losses related to other-than-temporary impairments: |  |  |  |  |  |  |  |  |  |  |  |
Investment losses related to other-than-temporary impairments |  |  | (20) |  |  |  | (206) |  |  |  | (524) |
Other-than-temporary impairments recognized in accumulated other comprehensive income (loss) |  |  | (13) |  |  |  | 147 |  |  |  | 173 |
Net investment losses related to other-than-temporary impairments |  |  | (33) |  |  |  | (59) |  |  |  | (351) |
Net gains (losses) on extinguishment of debt |  |  | — |  |  |  | (1) |  |  |  | (66) |
Other net realized gains (losses) |  |  | (17) |  |  |  | 1 |  |  |  | 4 |
Total revenues |  |  | (238) |  |  |  | (54) |  |  |  | (91) |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Operating |  |  | 29 |  |  |  | 31 |  |  |  | 30 |
Interest |  |  | 162 |  |  |  | 200 |  |  |  | 61 |
Total expenses |  |  | 191 |  |  |  | 231 |  |  |  | 91 |
Gain (loss) before income taxes and equity in earnings of subsidiaries |  |  | (429) |  |  |  | (285) |  |  |  | (182) |
Provision (benefit) for income taxes |  |  | (286) |  |  |  | (183) |  |  |  | 92 |
Gain (loss) before equity in earnings of subsidiaries |  |  | (143) |  |  |  | (102) |  |  |  | (274) |
Equity in net income (loss) of subsidiaries |  |  | (1,233) |  |  |  | 99 |  |  |  | 892 |
Net income (loss) |  | $ | (1,376) |  |  | $ | (3) |  |  | $ | 618 |
The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the accompanying notes. SCHEDULE II MBIA INC. (PARENT COMPANY) CONDENSED STATEMENTS OF CASH FLOWS (In millions)
|  | Years Ended December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) |  | $ | (1,376 | ) |  | $ | (3 | ) |  | $ | 618 |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Change in: |  |  |  |  |  |  |  |  |  |  |  |
Accrued investment income |  |  | 2 |  |  |  | 2 |  |  |  | 45 |
Intercompany accounts receivable |  |  | (29 | ) |  |  | 155 |  |  |  | (138 | )
Accrued interest payable |  |  | (5 | ) |  |  | 5 |  |  |  | (41 | )
Current income taxes |  |  | 124 |  |  |  | 56 |  |  |  | (353 | )
Equity in earnings of subsidiaries |  |  | 1,233 |  |  |  | (99 | ) |  |  | (892 | )
Dividends from subsidiaries |  |  | 46 |  |  |  | 19 |  |  |  | 1,174 |
Amortization of bond (premiums) discounts, net |  |  | (23 | ) |  |  | (23 | ) |  |  | (52 | )
Net investment losses related to other-than-temporary impairments |  |  | 33 |  |  |  | 59 |  |  |  | 351 |
Net (gains) losses on financial instruments at fair value and foreign exchange |  |  | 284 |  |  |  | 117 |  |  |  | (102 | )
Other net realized (gains) losses |  |  | 42 |  |  |  | (1 | ) |  |  | (4 | )
Deferred income tax benefit |  |  | (85 | ) |  |  | (90 | ) |  |  | 321 |
(Gains) losses on extinguishment of debt |  |  | — |  |  |  | 1 |  |  |  | 66 |
Share-based compensation |  |  | 4 |  |  |  | 2 |  |  |  | 6 |
Other operating |  |  | 6 |  |  |  | (12 | ) |  |  | (36 | )
Total adjustments to net income (loss) |  |  | 1,632 |  |  |  | 191 |  |  |  | 345 |
Net cash provided (used) by operating activities |  |  | 256 |  |  |  | 188 |  |  |  | 963 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |
Purchase of fixed-maturity securities |  |  | (3,737 | ) |  |  | (6,394 | ) |  |  | (6,910 | )
Sale and redemption of fixed-maturity securities |  |  | 4,651 |  |  |  | 7,288 |  |  |  | 8,687 |
Sale (purchase) of short-term investments, net |  |  | 251 |  |  |  | 363 |  |  |  | 1,735 |
Sale (purchase) of other investments, net |  |  | 81 |  |  |  | 55 |  |  |  | 182 |
(Payments) proceeds for derivative settlements |  |  | (85 | ) |  |  | 16 |  |  |  | — |
Collateral (to) from swap counterparty |  |  | — |  |  |  | 166 |  |  |  | — |
Contributions to subsidiaries |  |  | — |  |  |  | (35 | ) |  |  | (1,243 | )
Net cash provided (used) by investing activities |  |  | 1,161 |  |  |  | 1,459 |  |  |  | 2,451 |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from issuance of investment agreements |  |  | 102 |  |  |  | 91 |  |  |  | 140 |
Payments for drawdowns of investment agreements |  |  | (500 | ) |  |  | (735 | ) |  |  | (1,968 | )
Securities sold under agreements to repurchase |  |  | (835 | ) |  |  | (618 | ) |  |  | (696 | )
Payments for retirement of debt |  |  | (70 | ) |  |  | (43 | ) |  |  | (50 | )
Payments for affiliate loans |  |  | (13 | ) |  |  | (380 | ) |  |  | (1,782 | )
(Payments) proceeds for derivative settlements |  |  | — |  |  |  | — |  |  |  | 53 |
Purchase of treasury stock |  |  | (50 | ) |  |  | (30 | ) |  |  | (16 | )
Restricted stock awards settlements |  |  | (2 | ) |  |  | 2 |  |  |  | 2 |
Collateral from reverse repurchase agreement counterparties |  |  | — |  |  |  | — |  |  |  | 30 |
Collateral (to) from swap counterparty |  |  | — |  |  |  | — |  |  |  | (101 | )
Net cash provided (used) by financing activities |  |  | (1,368 | ) |  |  | (1,713 | ) |  |  | (4,388 | )
Net increase (decrease) in cash and cash equivalents |  |  | 49 |  |  |  | (66 | ) |  |  | (974 | )
Cash and cash equivalents—beginning of period |  |  | 83 |  |  |  | 149 |  |  |  | 1,123 |
Cash and cash equivalents—end of period |  | $ | 132 |  |  | $ | 83 |  |  | $ | 149 |
Supplemental cash flow disclosures: |  |  |  |  |  |  |  |  |  |  |  |
Income taxes paid (received), net |  | $ | (453 | ) |  | $ | (136 | ) |  | $ | 127 |
Interest paid: |  |  |  |  |  |  |  |  |  |  |  |
Investment agreements |  | $ | 29 |  |  | $ | 35 |  |  | $ | 61 |
Securities sold under agreements to repurchase |  | $ | 1 |  |  | $ | 2 |  |  | $ | 7 |
Affiliate loans |  | $ | 19 |  |  | $ | 36 |  |  | $ | 65 |
Long-term debt |  | $ | 60 |  |  | $ | 66 |  |  | $ | 70 |
The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the accompanying notes. SCHEDULE II MBIA INC. (PARENT COMPANY) NOTES TO CONDENSED FINANCIAL STATEMENTS 1. Condensed Financial Statements Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the Company's consolidated financial statements and the notes thereto. The activities of MBIA Inc. consist of general corporate activities and funding activities, which principally include holding and managing investments, servicing outstanding corporate debt, investment agreements and medium-term notes issued by MBIA Inc. and its subsidiaries, and posting collateral under investment agreement and derivative contracts. MBIA Inc. is subject to the same liquidity risks and uncertainties as described in footnote 1 to the Company's consolidated financial statements. As of December 31, 2011, MBIA Inc. had $226 million of cash and highly liquid assets available for general corporate liquidity purpose, and $160 million of cash and liquid assets not pledged as collateral in its funding activities. 2. Significant Accounting Policies MBIA Inc. (the "Parent Company") carries its investments in subsidiaries under the equity method. Certain amounts have been reclassified in prior years' financial statements to conform to the current presentation. This includes the reclassification of amounts from "Other investments" to "Fixed-maturity securities held as available-for-sale, at fair value" and from "Other liabilities" to "Affiliate loans payable" on the Parent Company's balance sheet. These reclassifications had no impact on total revenues, expenses, assets, liabilities, or shareholders' equity for all periods presented. 3. Dividends from Subsidiaries During 2011, Optinuity Alliance Resource Corporation declared and paid dividends of $38 million to MBIA Inc. and Euro Asset Acquisition Limited declared and paid dividends of $8 million to MBIA Inc. In 2010, Cutwater Holdings, LLC declared and paid dividends of $19 million to MBIA Inc. 4. Obligations under Investment Agreements and Medium-Term Notes The investment agreement business, as described in footnotes 2 and 12 to the Company's consolidated financial statements, is conducted by both MBIA Inc. and its wholly owned subsidiary, MBIA Investment Management Corp. 5. Pledged Collateral Substantially all of the obligations under investment agreements require MBIA Inc. to pledge securities as collateral. As of December 31, 2011 and 2010, the fair value of securities pledged as collateral with respect to these investment agreements approximated $428 million and $590 million, respectively. The Parent Company's collateral as of December 31, 2011, consisted principally of mortgage-backed securities, corporate obligations, and U.S. Treasury and government agency bonds, and was primarily held with major U.S. banks. Additionally, the Parent Company pledged money market securities as collateral under investment agreements in the amount of $224 million and $113 million as of December 31, 2011 and 2010, respectively. Under derivative contracts entered into by MBIA Inc., collateral postings are required by either MBIA Inc. or the counterparty when the aggregate market value of derivative contracts entered into with the same counterparty exceeds a predefined threshold. As of December 31, 2011 and 2010, MBIA Inc. pledged securities with a fair value of $470 million and $452 million, respectively, to derivative counterparties. 6. Affiliate Loans Payable Affiliate loans payable consists of loans payable to MBIA Global Funding, LLC ("GFL"). GFL raises funds through the issuance of medium-term notes with varying maturities, which are, in turn, guaranteed by MBIA Insurance Corporation. GFL lends the proceeds of these medium-term note issuances to MBIA Inc. ("GFL Loans"). MBIA Inc. invests the proceeds of the 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. Included within "Securities sold under agreements to repurchase" on the Parent Company's balance sheet is a secured loan from MBIA Insurance Corporation of $300 million.

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- Definition The entire disclosure for any allowance and reserve accounts (their beginning and ending balances, as well as a reconciliation by type of activity during the period). Alternatively, disclosure of the required information may be within the footnotes to the financial statements or a supplemental schedule to the financial statements. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 09 -Article 12 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e24092-122690 + Details
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