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Schedule II- Parent Company Financials | 12 Months Ended
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Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract] |
Condensed Financial Information of Parent Company Only Disclosure |
SCHEDULE II
MBIA INC. (PARENT COMPANY)
CONDENSED BALANCE SHEETS
(In millions except share and per share amounts)
|  |  |  | December 31, 2015 |  | December 31, 2014
Assets |  |  |  |  |  |
Investments: |  |  |  |  |  |
| Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $739 and $671) |  | $ | 792 |  | $ | 751
| Investments carried at fair value |  |  | 7 |  |  | 33
| Investments pledged as collateral, at fair value (amortized cost $329 and $445) |  |  | 291 |  |  | 408
| Short-term investments held as available-for-sale, at fair value (amortized cost $254 and $327) |  |  | 254 |  |  | 327
| Other investments |  |  | 4 |  |  | 4
|  | Total investments |  |  | 1,348 |  |  | 1,523
Cash and cash equivalents |  |  | 35 |  |  | 100
Investment in wholly-owned subsidiaries |  |  | 4,085 |  |  | 3,953
Deferred income taxes, net |  |  | 991 |  |  | 965
Other assets |  |  | 110 |  |  | 143
|  | Total assets |  | $ | 6,569 |  | $ | 6,684
Liabilities and Shareholders' Equity |  |  |  |  |  |
Liabilities: |  |  |  |  |  |
| Investment agreements |  |  | 423 |  |  | 505
| Long-term debt |  |  | 582 |  |  | 592
| Affiliate loans payable |  |  | 1,022 |  |  | 1,207
| Other liabilities |  |  | 813 |  |  | 451
|  | Total liabilities |  |  | 2,840 |  |  | 2,755
Shareholders' Equity: |  |  |  |  |  |
| Preferred stock, par value $1 per share; authorized shares--10,000,000; issued and outstanding--none |  |  | - |  |  | -
| Common stock, par value $1 per share; authorized shares--400,000,000; issued shares--281,833,618 |  |  |  |  |  |
|  | and 281,352,782 |  |  | 282 |  |  | 281
| Additional paid-in capital |  |  | 3,138 |  |  | 3,128
| Retained earnings |  |  | 3,038 |  |  | 2,858
| Accumulated other comprehensive income (loss), net of tax of $3 and $6 |  |  | (61) |  |  | 21
| Treasury stock, at cost--130,303,241 and 89,409,887 shares |  |  | (2,668) |  |  | (2,359)
|  | Total shareholders' equity of MBIA Inc. |  |  | 3,729 |  |  | 3,929
|  | Total liabilities and shareholders' equity |  | $ | 6,569 |  | $ | 6,684
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,
|  |  |  |  | 2015 |  | 2014 |  | 2013
Revenues: |  |  |  |  |  |  |  |  |
| Net investment income |  | $ | 35 |  | $ | 44 |  | $ | 50
| Net gains (losses) on financial instruments at fair value and foreign exchange |  |  | 59 |  |  | 24 |  |  | 11
| Investment losses related to other-than-temporary impairments: |  |  |  |  |  |  |  |  |
|  | Investment losses related to other-than-temporary impairments |  |  | (3) |  |  | - |  |  | -
|  | Other-than-temporary impairments recognized in accumulated other |  |  |  |  |  |  |  |  |
|  |  | comprehensive income (loss) |  |  | (1) |  |  | - |  |  | -
|  |  | Net investment losses related to other-than-temporary impairments |  |  | (4) |  |  | - |  |  | -
| Net gains (losses) on extinguishment of debt |  |  | - |  |  | 1 |  |  | 43
| Other net realized gains (losses) |  |  | 21 |  |  | 1 |  |  | -
|  |  | Total revenues |  |  | 111 |  |  | 70 |  |  | 104
Expenses: |  |  |  |  |  |  |  |  |
| Operating |  |  | 24 |  |  | 25 |  |  | 69
| Interest |  |  | 95 |  |  | 104 |  |  | 105
|  |  | Total expenses |  |  | 119 |  |  | 129 |  |  | 174
| Gain (loss) before income taxes and equity in earnings of subsidiaries |  |  | (8) |  |  | (59) |  |  | (70)
Provision (benefit) for income taxes |  |  | 1 |  |  | (165) |  |  | (202)
| Gain (loss) before equity in earnings of subsidiaries |  |  | (9) |  |  | 106 |  |  | 132
Equity in net income (loss) of subsidiaries |  |  | 189 |  |  | 463 |  |  | 118
|  |  | Net income (loss) |  | $ | 180 |  | $ | 569 |  | $ | 250
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 COMPREHENSIVE INCOME (LOSS)
(In millions)
|  |  |  | Years ended December 31,
|  |  |  | 2015 |  | 2014 |  | 2013
Net income (loss) |  | $ | 180 |  | $ | 569 |  | $ | 250
Other comprehensive income (loss): |  |  |  |  |  |  |  |  |
Unrealized gains (losses) on available-for-sale securities: |  |  |  |  |  |  |  |  |
| Unrealized gains (losses) arising during the period |  |  | (66) |  |  | 126 |  |  | (179)
| Provision (benefit) for income taxes |  |  | (7) |  |  | 14 |  |  | (17)
| Total |  |  | (59) |  |  | 112 |  |  | (162)
| Reclassification adjustments for (gains) losses included in net income (loss) |  |  | 4 |  |  | 23 |  |  | 23
| Provision (benefit) for income taxes |  |  | 1 |  |  | 8 |  |  | 8
| Total |  |  | 3 |  |  | 15 |  |  | 15
Available-for-sale securities with other-than-temporary impairments: |  |  |  |  |  |  |  |  |
| Other-than-temporary impairments and unrealized gains (losses) |  |  |  |  |  |  |  |  |
|  | arising during the period |  |  | - |  |  | - |  |  | 12
| Provision (benefit) for income taxes |  |  | - |  |  | - |  |  | 4
| Total |  |  | - |  |  | - |  |  | 8
| Reclassification adjustments for (gains) losses included in net income (loss) |  |  | - |  |  | 4 |  |  | -
| Provision (benefit) for income taxes |  |  | - |  |  | 1 |  |  | -
| Total |  |  | - |  |  | 3 |  |  | -
Foreign currency translation: |  |  |  |  |  |  |  |  |
| Foreign currency translation gains (losses) |  |  | (26) |  |  | (23) |  |  | (3)
Total other comprehensive income (loss) |  |  | (82) |  |  | 107 |  |  | (142)
Comprehensive income (loss) |  | $ | 98 |  | $ | 676 |  | $ | 108
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,
|  |  |  |  | 2015 |  | 2014 |  | 2013
Cash flows from operating activities: |  |  |  |  |  |  |  |  |
| Fees and reimbursements received |  | $ | - |  | $ | 1 |  | $ | -
| Investment income received |  |  | 142 |  |  | 256 |  |  | 250
| Operating expenses paid |  |  | (25) |  |  | (35) |  |  | (35)
| Interest paid, net of interest converted to principal |  |  | (88) |  |  | (93) |  |  | (93)
| Income taxes (paid) received |  |  | 108 |  |  | 59 |  |  | 111
|  |  | Net cash provided (used) by operating activities |  |  | 137 |  |  | 188 |  |  | 233
Cash flows from investing activities: |  |  |  |  |  |  |  |  |
| Purchases of available-for-sale investments |  |  | (606) |  |  | (125) |  |  | (287)
| Sales of available-for-sale investments |  |  | 325 |  |  | 268 |  |  | 147
| Paydowns and maturities of available-for-sale investments |  |  | 186 |  |  | 98 |  |  | 252
| Purchases of investments at fair value |  |  | (144) |  |  | (266) |  |  | (144)
| Sales, paydowns and maturities of investments at fair value |  |  | 171 |  |  | 280 |  |  | 126
| Sales, paydowns and maturities (purchases) of short-term investments, net |  |  | 232 |  |  | (242) |  |  | 94
| (Payments) proceeds for derivative settlements |  |  | 43 |  |  | (26) |  |  | (32)
| Collateral (to) from swap counterparty |  |  | (31) |  |  | 144 |  |  | 122
| Contributions to subsidiaries, net |  |  | 16 |  |  | (20) |  |  | 2
| Advances to subsidiaries, net |  |  | - |  |  | (12) |  |  | -
| Other investing |  |  | 24 |  |  | - |  |  | -
|  |  | Net cash provided (used) by investing activities |  |  | 216 |  |  | 99 |  |  | 280
Cash flows from financing activities: |  |  |  |  |  |  |  |  |
| Proceeds from investment agreements |  |  | 21 |  |  | 23 |  |  | 25
| Principal paydowns of investment agreements |  |  | (111) |  |  | (181) |  |  | (274)
| Payments for securities sold under agreements to repurchase |  |  | - |  |  | - |  |  | (32)
| Principal paydowns of long-term debt |  |  | (11) |  |  | - |  |  | (3)
| Payments for affiliate loans |  |  | (103) |  |  | (153) |  |  | (194)
| Purchases of treasury stock |  |  | (233) |  |  | (32) |  |  | -
| Restricted stock awards settlements |  |  | 19 |  |  | 16 |  |  | 13
|  |  | Net cash provided (used) by financing activities |  |  | (418) |  |  | (327) |  |  | (465)
Net increase (decrease) in cash and cash equivalents |  |  | (65) |  |  | (40) |  |  | 48
Cash and cash equivalents - beginning of year |  |  | 100 |  |  | 140 |  |  | 92
Cash and cash equivalents - end of year |  | $ | 35 |  | $ | 100 |  | $ | 140
Reconciliation of net income (loss) to net cash provided (used) by operating activities: |  |  |  |  |  |  |  |  |
| Net income (loss) |  | $ | 180 |  | $ | 569 |  | $ | 250
| Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: |  |  |  |  |  |  |  |  |
|  | Change in: |  |  |  |  |  |  |  |  |
|  |  | Intercompany accounts receivable |  |  | (21) |  |  | (24) |  |  | (14)
|  |  | Current income taxes |  |  | 109 |  |  | 70 |  |  | 116
|  | Equity in earnings of subsidiaries |  | (189) |  |  | (463) |  |  | (118)
|  | Dividends from subsidiaries |  | 116 |  |  | 225 |  |  | 219
|  | Net investment losses related to other-than-temporary impairments |  | 4 |  |  | - |  |  | -
|  | Net (gains) losses on financial instruments at fair value and foreign exchange |  | (59) |  |  | (24) |  |  | (11)
|  | Other net realized (gains) losses |  | (21) |  |  | (1) |  |  | -
|  | Deferred income tax benefit |  | - |  |  | (176) |  |  | (207)
|  | (Gains) losses on extinguishment of debt |  | - |  |  | (1) |  |  | (43)
|  | Other operating |  | 18 |  |  | 13 |  |  | 41
|  | Total adjustments to net income (loss) |  | (43) |  |  | (381) |  |  | (17)
|  |  | Net cash provided (used) by operating activities |  | $ | 137 |  | $ | 188 |  | $ | 233
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 o f MBIA Inc. consist of general corporate activities and funding activities, which principally include holding and managing investments, servicing outstanding corporate debt, investment agreements issued by MBIA Inc. and its subsidiaries, and posting collat eral 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, 2015, MBIA Inc. had $416 million of cash and highly liquid assets available for general corporate liquidity purpose s. 2. Significant Accounting Policies MBIA Inc. (the “Parent Company”) carries its investments in subsidiaries under the equity method. Certain amounts have be en reclassified in prior years’ financial statements to conform to the current presentation. Th ese reclassification s had no impact on total revenues, expenses, assets, liabilities, or shareholders’ equity for all periods presented. 3. Dividends from Subsid iaries During 2015, National Public Finance Guarantee Holdings, Inc. declared and paid a dividend of $114 million to MBIA Inc., Trifinium Holdings Limited d ecl ared and paid dividends of $1 million to MBIA Inc. and MBIA Services Corp. declared and paid a dividend of $1 million to MBIA Inc. During 2014, National Public Finance Guarantee Holdings, Inc. declared and paid a dividend of $220 million to MBIA Inc. and Trifinium Holdings Limited d ecl ared and paid dividends of $5 million to MBIA Inc. During 2013, National Public Finance Guarantee Holdings, Inc. declared and paid a dividend of $214 million to MBIA Inc., MBIA Services Corporation declared and paid dividends of $2 million to MBIA Inc. and CapMAC Holdings Inc. declared and paid dividends of $3 million to MBIA Inc. 4. Obligations under Investment Agreements The investment agreement business, as described in footnotes 2 and 1 0 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, 2015 and 2014, the fair value of securities pledged as co llateral with respect to these investment agreements approximated $402 million and $273 million, respectively. The Parent Company’s collateral as of December 31, 2015, consisted principally of U.S. Treasury and government agency and state and municipal bonds, and was primarily held with major U.S. banks. Additionally, the Parent Company pledged cash and money market securities as collateral under investment agreements in the amount of $12 million and $26 million as of December 31, 2015 and 2014, re spectively. 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, 2015, MBIA Inc. pledged securities with a fair value of $259 million to derivative counterparties. As of December 31, 2014, MBIA Inc. pledged securities with a fair value of $199 million to derivative counterparties. 6. Affiliate Loans Payable Affiliate loans payable consists of loans payable to MBIA Global Funding, LLC (“GFL”). GFL raise d funds through the issuance of medium-term notes with varying maturities, which were, in turn, guaranteed by MBIA Corp. GFL len t the pr oceeds of these medium-term note issuances to MBIA Inc.

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=7656940&loc=d3e5283-111683 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph c -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 06 -Article 9 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 12 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 05 -Paragraph c -Article 7 + Details
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