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Long-term Incentive Plans | 12 Months Ended
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Dec. 31, 2018
Long-Term Incentive Plans [Abstract] |
Long-Term Incentive Plans | Note 16: Long-term Incentive Plans Plan Description The Company maintains the MBIA Inc. 2005 Omnibus Incentive Plan (the “Omnibus Plan”), as amended on May 7, 2009 and May 1, 2012. Under the Omnibus Plan a maximum of 14,000,000 shares of the Company’s common stock can be used for any type of award including stock options, performance shares, performance units, restricted stock, restricted stock units and divide nd equivalents. A ny shares issued under the Omnibus Plan in connection with stock options shall be c ounted against this limit as 1 share covered by such option. For all awards other than stock options, any shares issued shall be counted against this limit as 1.28 shares for every share issued after th e May 1, 2012 amendment and two shares for every share issued prior to the May 1, 2012 amendment. The stock option component of the Omnibus Plan enables key employees of the Company and its subsidiaries to acquire shares of comm on stock of the Company or to benefit from appreciation in the price of the common stock of the Company. The stock option grants, which may be awarded every year, provide the right to purchase shares of common stock at the fair value of the stock on the da te of the grant. Options granted will either be Incentive Stock Options (“ISOs”) that qualify under Section 422(a) of the Internal Revenue Code, or Non-Qualified Stock Options (“NQSOs”). ISOs and NQSOs are granted at a price not less than 100% of the fair value, defined as the closing price on the grant date, of the Company’s common stock. Options are exercisable as specified at the time of grant depending on the level of the recipient (generally five years) and expire either seven or ten years from the date of grant (or shorter if specified or following termination of employment). Under the restricted stock component of the Omnibus Plan, certain employees are granted restricted shares of th e Company’s common stock. These awards have a re striction period lasting between three to seven years depending on the type of award, after which time the awards fully vest. During the vesting period, these shares may not be sold. Restricted stock may be granted to all employees. There were 2,471,234 shares available for future gr ants under the Omnibus Plan as of December 31, 2018. I n accordance with accounting guidance for share-based payments, the Company expenses the fair value of employee stock options and other forms of stock-based compensation. In addition, the guidance cl assifies share-based payment awards as either liability awards, which are remeasured at fair value at each balance sheet date, or equity awards, which are measured on the grant date and not subsequently remeasured. Generally, awards with cash-based settlem ent repurchase features or that are settled at a fixed dollar amount are classified as liability awards, and changes in fair value will be reported in earnings. Awards with net-settlement features or that permit a cashless exercise with third-party brokers are classified as equity awards and changes in fair value are not reported in earnings. The Company’s long-term incentive plans include features which result in equity awards. In addition, the guidance requires the use of a forfeiture estimate. The Compan y uses historical employee termination information to estimate the forfeiture rate applied to current stock-based awards. The Company maintains voluntary retirement benefits, which provide certain benefits to eligible employees of the Company upon retireme nt. A description of these benefits is included in the Company’s proxy statement. One of the components of the retirement program for those employees that are retirement eligible is to continue to vest all performance-based stock options and restricted sha re awards beyond the retirement date in accordance with the original vesting terms and to immediately vest all outstanding time-based stock options and restricted share grants. The accounting guidance for share-based payment requires compensation costs for those employees to be recognized from the date of grant through the retirement eligible date. Accelerated expense, if any, relating to this retirement benefit for both stock option awards and restricted stock awards has been included in the compensation e xpense amounts. Restricted Stock The fair value of the restricted shares awarded, net of cancellations, determi ned on the grant date was $37 million and $6 million for 2018 and 2017, respecti vely. The amount of unearned compensation, net of estimated forfeitures, was $36 million as of December 31, 2018, which is expected to be recognized as expense over a weighted average period of 3.3 years. Unear ned compensation is amortized to expense over the appropriate vesting period. Compensation expense related to the restricted shares, net of estimated forfeitures, was $6 million, $10 million and $16 million for the years ended December 31, 2018, 2017 and 2016, respectively. There was no tax charge related to the restricted share awards during 2018 and 2017 after consideration of the Company’s valuation allowance. The tax char ge related to the restricted share awards during 2016 was $1 million. A summary of the Company’s restricted shares outstanding as of December 31, 2018, 2017 and 2016, and changes during the years ended on those dates, is presented in the following table:
|  |  | Restricted Share Activity
|  |  | 2018 |  | 2017 |  | 2016
|  |  | Number of Shares |  | Weighted Average Price Per Share |  | Number of Shares |  | Weighted Average Price Per Share |  | Number of Shares |  | Weighted Average Price Per Share
| Outstanding at beginning of year |  | 2,392,978 |  | $ | 9.6142 |  | 3,916,661 |  | $ | 9.3553 |  | 4,727,319 |  | $ | 9.9302
| Granted |  | 3,668,801 |  |  | 9.9711 |  | 708,529 |  |  | 9.3740 |  | 756,381 |  |  | 8.2722
| Vested |  | (267,163) |  |  | 10.0705 |  | (1,051,657) |  |  | 9.9732 |  | (917,039) |  |  | 13.6196
| Forfeited |  | (750,000) |  |  | 9.9576 |  | (1,180,555) |  |  | 8.2912 |  | (650,000) |  |  | 6.2601
| Outstanding at end of year |  | 5,044,616 |  | $ | 9.7986 |  | 2,392,978 |  | $ | 9.6142 |  | 3,916,661 |  | $ | 9.3553
Stock Options The Company determines the fair value for stock option awards at the date of grant and is estimated using the Black-Scholes option pricing model. This model was developed for use in estimating the fair value of traded options that have no vesting restrictions, are fully transferable, and contain both service and some performance conditions. In addition, option valuation models require the input of highly subjective assumptions including the expected stock pri ce volatility. During 2018, 2017 and 2016, there were no stock option award s granted. The Company did not expense deferred tax assets during 2018 and 2017 after consideration of the Company’s valuation allowance. During 2016, the Company expensed deferred tax assets of $1 million related to the stock option awards as a charge through the statements of operations. As of December 31, 2018, there was no remaining unrecognized compen sation cost and all stock options had vested. There were no stock options outstanding as of December 31, 201 8. A summary of the Company’s stock options activity as of December 31, 2017 and 2016, and changes during the years ended on those dates, is presented in the following tables:
|  |  | 2017 |  | 2016 |
|  |  |  |  | Weighted |  |  |  | Weighted |
|  |  |  |  | Average |  |  |  | Average |
|  |  | Number of |  | Price |  | Number of |  | Price |
Options |  | Shares |  | Per Share |  | Shares |  | Per Share |
Outstanding at beginning of year |  | 237,800 |  | $ | 14.6689 |  | 2,325,300 |  | $ | 6.3703 |
Exercised |  | (200,000) |  |  | 5.0500 |  | (2,050,000) |  |  | 4.4722 |
Expired or forfeited |  | (37,800) |  |  | 65.5624 |  | (37,500) |  |  | 57.5100 |
Outstanding at end of year |  | - |  | $ | - |  | 237,800 |  | $ | 14.6689 |
Exercisable at end of year |  | - |  | $ | - |  | 237,800 |  | $ | 14.6689 |
Performance Based Awards During 2018 and 2017, the Company granted 247,286 and 65,287 restricted shares to certain key employees which have a vesting schedule dependent on the achievement of certain stock price targets of the Company. During 2017, the Company granted 127,001 restricted shares to certain key employees which have a vesting schedule dependent on the achievement of certain internal performance conditions of the Company. The grants and corresponding compensation expense have been include d in the above restricted stock disclosures. As permitted by the accounting guidance for share-based payment s, the Company estimates the fair value of awards that contain market performance conditions at the date of grant u sing a binomial lattice model wit h a Monte Carlo simulation and recognizes compensation cost over the requisite service period. The binomial lattice model can better incorporate assumptions about a stock price path because the model can accommodate a large number of potential stock prices over the award’s term in comparison to the Black-Scholes model. The Company estimates the fair value of awards that contain internal performance conditions at the date of grant and recognizes compensation cost over the requisite service period if it is pr obable that the internal performance conditions will be achieved. The Company reassesses the probability of vesting at each reporting period and the final compensation cost associated with awards dependent on the achievement of certain internal performance conditions will reflect only those awards that ultimately vest.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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