XML 66 R18.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Income Taxes | 3 Months Ended
--- | ---
Mar. 31, 2015
Text Block [Abstract] |
Income Taxes | Note 9: Income Taxes The Company’s i n c o m e t a x e s a nd t he r e l a t e d e f f e c ti v e t a x r a t e s f o r t he three months ended March 31, 2015 a nd 2014 a re a s fo l l o ws:
|  |  | Three Months Ended March 31, |
In millions |  |  | 2015 |  |  |  | 2014 |
Income (loss) before income taxes |  | $ | 113 |  |  | $ | 404 |
Provision (benefit) for income taxes |  | $ | 44 |  |  | $ | 148 |
Effective tax rate |  |  | 38.9% |  |  |  | 36.6% |
F or the three months ended March 31, 2015, the Company’s effective tax rate applied to its income before income taxes was higher than the U.S. statutory tax rate primarily as a result of the non-deductibility of the change in fair value of the warrants. F or the three months ended March 31, 2014, the Company’s effective tax rate applied to its income before income taxes was higher than the U.S. statutory tax rate primarily as a result of certain non-tax deductible expenses and the increase in the valuatio n allowance against its deferred tax asset. The Company's provision for income taxes for interim financial periods is not based on an estimated annual effective rate due to the variability in fair value of its derivative liabilitie s, which prevents the Compan y from projecting a reliable estimated annual effective tax rate and income before income taxes for the full year of 2015. A discrete calculation of the provision is calculated for each interim period. Deferred Tax Asset, Net of Valuation Allowance The Company establishes a valuation allowance against its deferred tax asset when it is more likely than not that all or a portion of the deferred tax asset will not be realized. All evidence, both positive and negative, needs to be identified and considered in making the determination. Future realization of the existing deferred tax asset ultimately depends, in part, on the generation of sufficient taxable income of appropriate character (for example, ordinary income versus capital gains) within th e carryforward period available under the tax law. As of March 31, 2015 and December 31, 2014, the Company’s net deferred tax asset was $1.0 b illion, with no valuation allowance as a result of a tax planning strategy to use unrealized gains that are included in “Accumulated other comprehensive income (loss)” on the Company’s consolidated balance sheets against the deferred tax asset related to any remaining asset impairments. In accordance with accounting guidance for income taxes, the netting of defe rred taxes between different taxpaying jurisdictions is not permitted. As of March 31, 2015, there was also a non U.S. deferred tax liability of $15 million included in “Other liabilities” on the Company’s consolidated balance sheet. Tax Sharing A gr eement The Company has a tax sharing agreement among its members effective January 1, 1987. The agreement was amended and restated effective September 8, 2011 to change the method of calculating each domestic insurer’s tax liability to the method permitted by paragraph 3(a) of Department Circular Letter #33 (1979). The agreement was submitted to the NYSDFS for review and non-disapproval pursuant to Section 1505 of the New York Insurance Law (“NYIL”). The Company’s tax sharing agreement is filed as an exhibi t to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, for informational purposes only. Refer to “Note 2: Significant Accounting Policies” in the Notes to Consolidated Financial Statements included in the Company’s Annual Repor t on Form 10-K for the year ended December 31, 2014, for further discussion on the Company’s tax sharing agreement. A cc o u n t i n g f o r U n c e r t a i n t y i n I n c o m e T ax e s The C o m p a ny’s po l i c y is t o r eco r d a n d d i s c l o s e an y c h an g e i n unrecognized tax benefit (“U T B”) an d r e l a t e d i n t e r es t a n d/or p e n a l t i e s t o i n c o m e t a x i n t h e co n s o l i d a t e d s t a t e m en t s o f o pe r a t i ons. The Company includes interest as a component of income tax expense. As of March 31, 2015 and December 31, 2014, the Company had no UTB outstanding. MBIA and its U.S. subsidiaries file a U.S. consolidated federal income tax return. Federal income tax returns for 2011 through 2013 are subject to examination. The tax authorities in the U nited Kingdom have been auditing MBIA UK for tax years 2005 through 201 2. In April of 201 5, MBIA UK received correspondence from the H M Revenue & Customs closing the audit for the years under examination with no change in taxable income. As of March 31, 2015, the Company’s net operating loss (“NOL”) is approximately $3.1 billion. The NOL will expire between tax years 2029 through 203 4. As of March 31, 2015, the Company has an alternative minimum tax credit carryforward of $22 million, which does not expire.

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_TextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration