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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income (loss) from operations before provision (benefit) for income taxes |
|  | Years Ended December 31, |
In millions |  | 2020 |  |  |  |  |  | 2019 |  |  |  |  |  | 2018 |
Domestic |  | $ | (578) |  |  |  |  |  |  | $ | (357) |  |  |  |  |  |  | $ | (287) |
Foreign |  |  | — |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  | (9) |
Income (loss) before income taxes |  | $ | (578) |  |  |  |  |  |  | $ | (357) |  |  |  |  |  |  | $ | (296) |
Income tax expense (benefit) on income (loss) and shareholder' equity |
|  | Years Ended December 31, |
In millions |  | 2020 |  |  | 2019 |  |  | 2018 |
Current taxes: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  | $ | — |
State |  |  | — |  |  |  | 2 |  |  |  | 1 |
Deferred taxes: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | — |  |  |  | — |  |  |  | (1) |
Foreign |  |  | — |  |  |  | — |  |  |  | — |
Provision (benefit) for income taxes |  |  | — |  |  |  | 2 |  |  |  | — |
Income taxes charged (credited) to shareholders’ equity related to: |  |  |  |  |  |  |  |  |  |  |  |
Change in unrealized gains (losses) on AFS securities |  |  | — |  |  |  | — |  |  |  | 5 |
Change in AFS securities with OTTI |  |  | — |  |  |  | — |  |  |  | — |
Change in foreign currency translation |  |  | — |  |  |  | — |  |  |  | — |
Total income taxes charged (credited) to shareholders’ equity |  |  | — |  |  |  | — |  |  |  | 5 |
Total effect of income taxes |  | $ | — |  |  | $ | 2 |  |  | $ | 5 |
Income tax rate reconciliation from statutory to effective tax rate |
|  | Years Ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Federal income tax computed at the statutory rate |  |  | 21.0% |  |  |  | 21.0% |  |  |  | 21.0% |
Increase (reduction) in taxes resulting from: |  |  |  |  |  |  |  |  |  |  |  |
Mark-to-market on warrants |  |  | 0.0% |  |  |  | 0.0% |  |  |  | (0.7)% |
Change in valuation allowance |  |  | (20.3)% |  |  |  | (20.7)% |  |  |  | (20.9)% |
State income tax, net of federal benefit |  |  | 0.0% |  |  |  | (0.4)% |  |  |  | 0.0% |
Deferred inventory adjustments |  |  | 0.0% |  |  |  | 0.0% |  |  |  | (1.0)% |
Other |  |  | (0.7)% |  |  |  | (0.5)% |  |  |  | 1.6% |
Effective tax rate |  |  | 0.0% |  |  |  | (0.6)% |  |  |  | 0.0% |
Deferred tax assets and liabilities |
|  | As of |
In millions |  | December 31, 2020 |  |  | December 31, 2019 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Unearned premium revenue |  | $ | 48 |  |  | $ | 54 |
Deferred acquisition costs |  |  | 10 |  |  |  | 13 |
Net unrealized gains and losses in accumulated other comprehensive income |  |  | 25 |  |  |  | — |
Net deferred taxes on VIEs |  |  | 53 |  |  |  | 51 |
Other |  |  | 6 |  |  |  | — |
Total gross deferred tax liabilities |  |  | 142 |  |  |  | 118 |
Deferred tax assets: |  |  |  |  |  |  |  |
Compensation and employee benefits |  |  | 9 |  |  |  | 8 |
Accrued interest |  |  | 210 |  |  |  | 185 |
Partnership basis difference |  |  | 10 |  |  |  | 10 |
Loss and loss adjustment expense reserves |  |  | 98 |  |  |  | 101 |
Net operating loss |  |  | 656 |  |  |  | 590 |
Foreign tax credits |  |  | 61 |  |  |  | 61 |
Other-than-temporary impairments |  |  | — |  |  |  | 2 |
Net unrealized gains and losses on insured derivatives |  |  | 10 |  |  |  | 9 |
Net gains and losses on financial instruments at fair value and foreign exchange |  |  | 54 |  |  |  | 21 |
Other |  |  | — |  |  |  | 4 |
Total gross deferred tax assets |  |  | 1,108 |  |  |  | 991 |
Valuation allowance |  |  | 966 |  |  |  | 873 |
Net deferred tax asset |  | $ | — |  |  | $ | — |

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
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