XML 62 R11.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Recent Accounting Pronouncements | 12 Months Ended
--- | ---
Dec. 31, 2019
Text Block [Abstract] |
Recent Accounting Pronouncements | Note 3: Recent Accounting Pronouncements Recently Adopted Accounting Standards Leases (Topic 842) (ASU 2016-02) In February of 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)”, that amends the accounting guidance for leasing transactions. ASU 2016-02 requires a lessee to classify lease contracts as finance or operating leases, and to recognize assets and liabilities for the rights and obligations created by leasing transactions with lease terms more than twelve months. ASU 2016-02 substantially retains the criteria for classifying leasing transactions as finance or operating leases. For finance leases, a lessee recognizes a right-of-use asset and a lease liability initially measured at the present value of the lease payments, and recognizes interest expense on the lease liability separately from the amortization of the right-of-use asset. For operating leases, a lessee recognizes a right-of-use asset and a lease liability initially measured at the present value of the lease payments, and recognizes lease expense on a straight-line basis. The Company adopted ASU 2016-02 in its entirety in the first quarter of 2019, using an additional (and optional) modified retrospective transition approach. Comparative periods are presented in accordance with Accounting Standards Codification (“ASC”) Topic 840, Leases, and do not include any retrospective adjustments to comparative periods to reflect the adoption of ASU 2016-02. The Company recorded a right-of-use asset and lease liability of $23 million. The gross up of the assets and liabilities does not have a cumulative effect adjustment to the opening balance of retained earnings and does not impact the Company’s statement of operations. Refer to “Note 19: Commitments and Contingencies” for information about the Company’s lease s . Disclosure Update and Simplification In August of 2018, the Securities and Exchange Commission published Release No. 33-10532, Disclosure Update and Simplification, which amends certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, these amendments updated the disclosure requirements for the interim financial statement requirements to include a reconciliation of each caption of shareholders’ equity, in the notes or as a separate statement for each period for which a statement of comprehensive income is required to be included. The Company updated the presentation of its consolidated statements of changes in shareholders’ equity for all periods presented beginning in the first quarter of 2019. Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12) In December of 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU 2019-12 simplifies the accounting for income taxes by eliminating certain exceptions within ASC Topic 740, Income Taxes, and clarifying certain aspects of the current guidance to improve consistent application of ASC Topic 740. ASU 2019-12 is effective for interim and annual periods beginning January 1, 2021 with early adoption permitted. Most amendments in ASU 2019-12 are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company e lected to early adopt ASU 2019-12 a s of January 1, 2019 (for the reporting period ending December 31, 2019). ASU 2019-12 removes the intraperiod tax allocation principle that allocates total tax expense or benefit to components of the income statement and other comprehensive income. As a result of this adoption, the Company reversed $29 million that was allocated between the Company’s consolidated statement of operations and other comprehensive income (loss) for the nine months ended September 30, 2019. The remaining amendments of ASU 2019-12 did not have a material impact on the Company’s consolidated financial statements. As a result of early adopting ASU 2019-12, the Company revised its previously reported amounts for 2019. The following table presents the Company’s revised financial statement amounts due to the adoption of ASU 2019-12:
|  | Three Months Ended |  |  | Six Months Ended |  |  | Nine Months Ended |
In millions, except per share amounts |  | March 31, 2019 |  |  | June 30, 2019 |  |  | September 30, 2019 |  |  | June 30, 2019 |  |  | September 30, 2019 |
Provision (benefit) for income taxes as previously reported |  | $ | (2 | ) |  | $ | (37 | ) |  | $ | 18 |  |  | $ | (39 | ) |  | $ | (21 | )
Provision (benefit) for income taxes as revised |  |  | 2 |  |  |  | — |  |  |  | 6 |  |  |  | 2 |  |  |  | 8 |
Net income (loss) as previously reported |  |  | (17 | ) |  |  | (170 | ) |  |  | 71 |  |  |  | (187 | ) |  |  | (116 | )
Net income (loss) as revised |  |  | (21 | ) |  |  | (207 | ) |  |  | 83 |  |  |  | (228 | ) |  |  | (145 | )
Net income (loss) per common share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic—as previously reported |  | $ | (0.20 | ) |  | $ | (2.02 | ) |  | $ | 0.86 |  |  | $ | (2.20 | ) |  | $ | (1.40 | )
Basic—as revised |  |  | (0.24 | ) |  |  | (2.45 | ) |  |  | 1.00 |  |  |  | (2.68 | ) |  |  | (1.75 | )
Diluted—as previously reported |  |  | (0.20 | ) |  |  | (2.02 | ) |  |  | 0.86 |  |  |  | (2.20 | ) |  |  | (1.40 | )
Diluted—as revised |  |  | (0.24 | ) |  |  | (2.45 | ) |  |  | 1.00 |  |  |  | (2.68 | ) |  |  | (1.75 | )
The Company has not adopted any other new accounting pronouncements that had a material impact on its consolidated financial statements. Recent Accounting Developments Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13) In June of 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires financing receivables and other financial assets measured at amortized cost to be presented at the net amount expected to be collected by recording an allowance for credit losses with changes in the allowance recorded as credit loss expense or a reversal of credit loss expense based on management’s current estimate of expected credit losses each period. ASU 2016-13 does not apply to credit losses on financial guarantee insurance contracts within the scope of ASC Topic 944, “Financial Services-Insurance.” ASU 2016-13 also makes targeted amendments to the current impairment model for AFS debt securities, which include requiring the recognition of an allowance rather than a direct write-down of the investment’s cost basis. An allowance on an AFS investment may be reversed in the event that the credit quality of the issuer improves. The new guidance also replaces the model for purchased credit impaired debt securities and requires the establishment of an allowance for credit losses at acquisition of such securities by grossing up the purchase price when recording the initial amortized cost. ASU 2016-13 is effective for interim and annual periods beginning January 1, 2020 with early adoption permitted beginning January 1, 2019. ASU 2016-13 is applied on a modified retrospective basis except that prospective application is applied to AFS debt securities with other-than-temporary impairments (“OTTI”) recognized before the date of adoption. The Company is adopting ASU 2016-13 in its entirety as of January 1, 2020. For financial assets held by the Company and measured at amortized cost, which primarily include HTM debt securities, premiums receivable, accrued investment income and reinsurance recoverables , the Company’s aggregate estimated cumulative-effect adjustment, net of tax, related to allowances for credit losses as of the date of adoption is approximately $42 million reduction in retained earnings. In addition, the Company is updating models and implementing or modifying processes and controls necessary for the proper identification, measurement and recording of expected credit losses on financial assets within the scope of ASU 2016-13. Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13) In August of 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for interim and annual periods beginning January 1, 2020 with early adoption permitted to remove or modify disclosures upon issuance of the standard and delay adoption of the additional disclosures until the effective date. Upon the effective date, certain amendments should be applied prospectively, while others are to be applied retrospectively to all periods presented. Since the amendments of ASU 2018-13 only impact disclosure requirements, the adoption of ASU 2018-13 did not impact the Company’s consolidated financial statements. The Company plans to adopt the amendments of ASU 2018-13 in its entirety as of January 1, 2020. The adoption of ASU 2018-13 will only impact the fair value disclosures within the Company’s consolidated financial statements and will not impact amounts reported on the Company’s balance sheet, statement of operations, statement of comprehensive income or statement of cash flows.

X
- Definition The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 + Details
Name: | us-gaap_NewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock
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