XML 60 R45.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2015
Text Block [Abstract] |
Income (loss) from operations before provision (benefit) for income taxes |
|  |  | Years Ended December 31, |
| In millions |  | 2015 |  | 2014 |  | 2013 |
| Domestic |  | $ | 303 |  | $ | 574 |  | $ | 435 |
| Foreign |  |  | (14) |  |  | 67 |  |  | (19) |
| Income (loss) before income taxes |  | $ | 289 |  | $ | 641 |  | $ | 416 |
Income tax expense (benefit) on income (loss) and shareholder' equity |
|  |  |  | Years Ended December 31, |
| In millions |  | 2015 |  | 2014 |  | 2013 |
| Current taxes: |  |  |  |  |  |  |  |  |  |
|  | Federal |  | $ | - |  | $ | - |  | $ | - |
|  | State |  |  | 1 |  |  | 10 |  |  | 8 |
|  | Foreign |  |  | 2 |  |  | 12 |  |  | 1 |
| Deferred taxes: |  |  |  |  |  |  |  |  |  |
|  | Federal |  |  | 97 |  |  | 48 |  |  | 165 |
|  | Foreign |  |  | 9 |  |  | 2 |  |  | (8) |
| Provision (benefit) for income taxes |  |  | 109 |  |  | 72 |  |  | 166 |
| Income taxes charged (credited) to shareholders' equity related to: |  |  |  |  |  |  |  |  |  |
|  | Change in unrealized gains (losses) on AFS securities |  |  | (30) |  |  | 89 |  |  | (81) |
|  | Change in AFS securities with OTTI |  |  | - |  |  | (29) |  |  | 4 |
|  | Change in foreign currency translation |  |  | (14) |  |  | (13) |  |  | 1 |
|  | Share-based compensation |  |  | 9 |  |  | 2 |  |  | 4 |
| Total income taxes charged (credited) to shareholders' equity |  |  | (35) |  |  | 49 |  |  | (72) |
| Total effect of income taxes |  | $ | 74 |  | $ | 121 |  | $ | 94 |
Income tax rate reconciliation from statutory to effective tax rate |
|  |  |  | Years Ended December 31, |
|  |  |  | 2015 |  | 2014 |  | 2013 |
| Federal income tax computed at the statutory rate |  | 35.0% |  | 35.0% |  | 35.0% |
| Increase (reduction) in taxes resulting from: |  |  |  |  |  |  |
|  | Mark-to-market on warrants |  | (1.2)% |  | (1.6)% |  | 3.8% |
|  | Change in valuation allowance |  | 0.0% |  | (13.5)% |  | (12.6)% |
|  | Change in uncertain tax positions |  | 0.0% |  | (9.1)% |  | 2.8% |
|  | Non deductible compensation |  | 2.7% |  | 0.0% |  | 0.0% |
|  | Basis difference in foreign subsidiary |  | 0.0% |  | 0.0% |  | 11.4% |
|  | Other |  | 1.2% |  | 0.4% |  | (0.5)% |
| Effective tax rate |  | 37.7% |  | 11.2% |  | 39.9% |
Deferred tax assets and liabilities |
|  |  |  | As of December 31, |
| In millions |  | 2015 |  | 2014 |
| Deferred tax liabilities: |  |  |  |  |  |  |
|  | Unearned premium revenue |  | $ | 159 |  | $ | 196 |
|  | Deferral of cancellation of indebtedness income |  |  | 68 |  |  | 91 |
|  | Deferred acquisition costs |  |  | 56 |  |  | 72 |
|  | Net unrealized gains in accumulated other comprehensive income |  |  | - |  |  | 4 |
|  | Partnership basis difference |  |  | 30 |  |  | 45 |
|  | Basis difference in foreign subsidiaries |  |  | 40 |  |  | 59 |
|  | Other |  |  | 91 |  |  | 55 |
| Total gross deferred tax liabilities |  |  | 444 |  |  | 522 |
| Deferred tax assets: |  |  |  |  |  |  |
|  | Compensation and employee benefits |  |  | 19 |  |  | 30 |
|  | Accrued interest |  |  | 137 |  |  | 99 |
|  | Loss and loss adjustment expense reserves |  |  | 119 |  |  | 69 |
|  | Net operating loss and tax credit carryforwards |  |  | 972 |  |  | 1,150 |
|  | Other-than-temporary impairments |  |  | 5 |  |  | 6 |
|  | Net unrealized losses on insured derivatives |  |  | 35 |  |  | 93 |
|  | Net losses on financial instruments at fair value and foreign exchange |  |  | 45 |  |  | 37 |
|  | Net unrealized losses in accumulated other comprehensive income |  |  | 15 |  |  | - |
|  | Alternative minimum tax credit carryforward |  |  | 22 |  |  | 22 |
|  | Net deferred taxes on VIEs |  |  | 14 |  |  | 25 |
| Total gross deferred tax assets |  |  | 1,383 |  |  | 1,531 |
|  | Valuation allowance |  |  | - |  |  | - |
| Net deferred tax asset |  | $ | 939 |  | $ | 1,009 |
Change in unrecognized tax benefit |
| In millions |  |  |  |
| Unrecognized tax benefit as of January 1, 2013 |  | $ | 47 |
| The gross amount of the increase/(decrease) in the UTB as a result of tax positions taken: |  |  |  |
|  | During a prior year |  |  | 18 |
| The amounts of decreases in the UTB as a result of the applicable statute of limitations |  |  | - |
| Unrecognized tax benefit as of December 31, 2013 |  | $ | 65 |
| The gross amount of the increase/(decrease) in the UTB as a result of tax positions taken: |  |  |  |
|  | During a prior year |  |  | (61) |
|  | During the current year |  |  | - |
| The amounts of decreases in the UTB related to settlements with taxing authorities |  |  | (4) |
| Unrecognized tax benefit as of December 31, 2014 |  | $ | - |
| The gross amount of the increase/(decrease) in the UTB as a result of tax positions taken: |  |  |  |
|  | During the current year |  |  | - |
| The amounts of decreases in the UTB related to settlements with taxing authorities |  |  | - |
| The reduction in the UTB as a result of the applicable statute of limitations |  |  | - |
| Unrecognized tax benefit as of December 31, 2015 |  | $ | - |

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: 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 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: 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 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: 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)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=32707879&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=6907707&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_TextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration