XML 35 R19.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Debt | 12 Months Ended
--- | ---
Dec. 31, 2016
Debt Disclosure [Abstract] |
Debt | Note 10: Debt Long-Term Debt The Company’s long-term debt consists of notes and debentures including accrued interest as follows:
|  |  | As of December 31, |
| In millions |  | 2016 |  | 2015 |
| 6.400% Senior Notes due 2022 (1) |  | $ | 266 |  | $ | 266 |
| 7.000% Debentures due 2025 |  |  | 46 |  |  | 46 |
| 7.150% Debentures due 2027 |  |  | 100 |  |  | 100 |
| 6.625% Debentures due 2028 |  |  | 141 |  |  | 141 |
| 5.700% Senior Notes due 2034 (2) |  |  | 21 |  |  | 21 |
| Surplus Notes due 2033 (3) |  |  | 940 |  |  | 940 |
| Accrued interest |  |  | 506 |  |  | 394 |
| Debt issuance costs |  |  | (34) |  |  | (19) |
| Total |  | $ | 1,986 |  | $ | 1,889 |
| ________________ |  |  |  |  |  |
| (1) - Callable on or after August 15, 2006 at par. |
| (2) - Callable anytime at the greater of par or the present value of the remaining scheduled |
| payments of principal and interest. |
| (3) - Contractual interest rate is based on three month LIBOR plus 11.26%. |
In addition to t he preceding table, a s of December 31, 2016, National owned $136 million principal amount of the 5.70 0% Senior Notes due 2034 and MBIA Inc., through its corporate segment, owned $13 million of MBIA Corp. surplus notes that are eliminated on a consolidated basis. Interest and principal payments on the surplus notes are subject to prior approval by the NYSDFS. From the January 15, 2013 interest payment to the present, MBIA C orp.’s requests for approval of the note interes t payments have been denied by the NYSDFS. MBIA Corp. provide s notice to the Fiscal Agent when it does not make a scheduled interest payment. The deferred interest payment will become due on the first business day on or after which MBIA Corp. obtains approval to make such payment. No interest will accrue on the deferred interest. The surplus notes were callable at par at the option of MBIA Corp. on the fifth anniversary of the date of issuance, and are callable at par on January 15, 2018 and ev ery fifth anniversary thereafter and are callable on any other date at par plus a make-whole amount, subject to prior approval by the Superintendent and other restrictions. The cash received from the issuance of surplus notes was used for general business purposes and the deferred debt issuance costs are being amortized over the term of the surplus notes. The aggregate maturities of principal payments of long-term debt obligations in each of the next five years ending December 31, and thereafter, are as fo llows:
In millions |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | Thereafter |  | Total
Corporate debt |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 574 |  | $ | 574
Surplus Notes due 2033 |  |  | - |  |  | 940 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 940
Total debt obligations due |  | $ | - |  | $ | 940 |  | $ | - |  | $ | - |  | $ | - |  | $ | 574 |  | $ | 1,514
Other Long-Term Debt In connection with the Zohar II Claim, in January of 2017, MBIA Corp. consummated the Facility with the Senior Lenders and with MBIA Inc., pursuant to which the Senior Lenders have provided $325 million of senior financing and MBIA Inc. has provided $38 million of subordinated financing to MZ Funding, which in turn lent the proceeds of such financing to MBIA Corp. Under the Facility, MBIA Inc. has agreed to provide an additional $50 million subordinated financing to MZ Funding, which MZ Funding would then lend to MBIA Corp., if needed by MBIA Insurance Corporation for liquidity purposes. The loans to MBIA Corp. under the Facility mature on January 20, 2020 and bear interest at 14% per annum. The Facility is secured by a first priority security interest in all of MBIA Corp.’s right, title and interest in to recovery of its claims from the assets of Zohar I and Zohar II which include, among other things, loans made to, and equity interests in, companies purportedly controlled by the Zoha r Sponsor and any claims that the Company may have against the Zohar Sponsor. Investment Agreements C ertain investment agreements provide for early termination, including, in some cases, with make-whole payments, upon certain contingent events including the bankruptcy of MBIA Inc. or the commencement of an insolvency proceeding with respect to MBIA Corp. Upon the occurrence of certain contractually agreed-upon e vents, some of these funds may be withdrawn by the investor prior to their contractual maturity dates. All of the investment agreements have been collateralized in accordance with the contractual terms. Investment agreements have been issued with either fixed or floating interest rates in U.S. dollars. As of December 31, 2016, the annual interest rates on these agreements ranged from 4.4 8% to 6.89% and the weighted average interest rate was 5.6 6%. As of December 31, 2015, the annual interest rates on these agreements ranged from 4.40% to 6.89% and the weighted average interest rate was 5.56%. Expected principal payments due under these investment agreements in each of the next five years ending December 31 and thereafter, based upon contractual maturity dates, are as follows:
|  |  | Principal |
| In millions |  | Amount |
| Maturity date: |  |  |  |
| 2017 |  | $ | 56 |
| 2018 |  |  | 17 |
| 2019 |  |  | 7 |
| 2020 |  |  | 35 |
| 2021 |  |  | 3 |
| Thereafter |  |  | 342 |
| Total expected principal payments (1) |  | $ | 460 |
| Less discount and other adjustments (2) |  |  | 61 |
| Total |  | $ | 399 |
| ________________ |  |  |
| (1)- Amounts reflect principal due at maturity for investment agreements issued at a discount. |
| (2)- Includes discounts net of carrying amount adjustments of $66 million, net of accrued interest of $5 million. |
Medium-Term Notes MTNs are denominated in U.S. dollars or foreign currencies and accrue interest based on fixed or floating interest rates. Certain MTNs are measured at fair value in accordance with the accounting guidance for hybrid financial instruments. As of December 31, 2016, the interest ra tes of the MTNs ranged from 0% to 6.00% and th e weighte d average interest rate was 2.43%. As of December 31, 2015, the interest rates of the MTNs ranged from 0% to 6.40% and the weighted average interest rate was 2.42%. During 2016, the Company repurchased $6 million par value outstanding at a cost of approximately 97% of par value and redeemed $4 million at par value of MTNs issued by the Company’s corporate segment. Expected principal payments due under MTN obligations based on their contractual maturity dates are as follows:
|  |  | Principal |
| In millions |  | Amount |
| Maturity date: |  |  |  |
| 2017 |  | $ | 36 |
| 2018 |  |  | 57 |
| 2019 |  |  | 54 |
| 2020 |  |  | - |
| 2021 |  |  | 106 |
| Thereafter |  |  | 975 |
| Total expected principal payments (1) |  | $ | 1,228 |
| Less discount and other adjustments (2) |  |  | 333 |
| Total |  | $ | 895 |
| ________________ |  |  |
| (1)- Amounts reflect principal due at maturity for notes issued at a discount. |
| (2)- Includes discounts net of carrying amount adjustments and bifurcated embedded derivatives of $279 million, fair value adjustments of $57 million, net of accrued interest of $3 million. |
Variable Interest Entit y Notes VIE notes are variable interest rate debt instruments that were issued primarily in U.S. dollars by consolidated VIEs within the Company’s international and structured finance insurance segment. These VIE notes consist of debt instruments issued by issuer-sponsored consolidated VIEs col lateralized by assets held by those consolidated VIEs. As of December 31, 2016, f or VIE notes not accounted for at fair value, contractual interest rates ranged from 1.07% to 2.77% and the weighted average interest rate was 2.25%. The maturity of the Company’s international and structured finance insurance segment’s VIE notes, as of December 31, 2016 is presented in the following table:
|  |  | Principal |  |
| In millions |  | Amount |  |
| Maturity date: |  |  |  |  |
| 2017 |  | $ | 220 |  |
| 2018 |  |  | 238 |  |
| 2019 |  |  | 173 |  |
| 2020 |  |  | 124 |  |
| 2021 |  |  | 140 |  |
| Thereafter |  |  | 1,346 |  |
| Total |  | $ | 2,241 | (1) |
| _______________ |  |  |  |  |
| (1) - Includes $1.4 billion of VIE notes accounted for at fair value as of December 31, 2016.

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

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration