2014 Q4 Form 10-Q Financial Statement

#000119312514398675 Filed on November 05, 2014

View on sec.gov

Income Statement

Concept 2014 Q4 2014 Q3 2013 Q3
Revenue $216.0M $291.0M $420.0M
YoY Change -51.68% -30.71% 49.47%
Cost Of Revenue $20.00M $98.00M
YoY Change -79.59% -42.69%
Gross Profit $271.0M $322.0M
YoY Change -15.84% 192.73%
Gross Profit Margin 93.13% 76.67%
Selling, General & Admin $59.00M $80.00M
YoY Change -26.25% 0.0%
% of Gross Profit 21.77% 24.84%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization
YoY Change
% of Gross Profit
Operating Expenses $120.0M $59.00M $80.00M
YoY Change 25.0% -26.25% 0.0%
Operating Profit $212.0M $242.0M
YoY Change -12.4% 706.67%
Interest Expense -$61.00M $52.00M $59.00M
YoY Change -10.29% -11.86% -14.49%
% of Operating Profit 24.53% 24.38%
Other Income/Expense, Net
YoY Change
Pretax Income $34.00M $148.0M $171.0M
YoY Change -88.44% -13.45% -400.0%
Income Tax $14.00M -$25.00M $39.00M
% Of Pretax Income 41.18% -16.89% 22.81%
Net Earnings $20.00M $173.0M $132.0M
YoY Change -84.85% 31.06% 1785.71%
Net Earnings / Revenue 9.26% 59.45% 31.43%
Basic Earnings Per Share $0.90 $0.68
Diluted Earnings Per Share $106.0K $0.80 $0.52
COMMON SHARES
Basic Shares Outstanding 193.2M shares 187.1M shares 188.9M shares
Diluted Shares Outstanding 188.4M shares 192.6M shares

Balance Sheet

Concept 2014 Q4 2014 Q3 2013 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $782.0M $606.0M $1.103B
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment $37.00M
YoY Change -46.38%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $11.82B $12.55B $12.91B
YoY Change -4.15% -2.77% -13.07%
Other Assets $1.830B $1.076B $1.243B
YoY Change 60.81% -13.44% -14.04%
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $16.26B $16.20B $17.63B
YoY Change -4.07% -8.12% -20.33%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $39.00M
YoY Change
LONG-TERM LIABILITIES
Long-Term Debt $1.810B $8.907B $9.376B
YoY Change 6.35% -5.0% -18.67%
Other Long-Term Liabilities $1.499B $711.0M $1.824B
YoY Change 2.88% -61.02% -54.17%
Total Long-Term Liabilities $1.810B $9.618B $11.20B
YoY Change 6.35% -14.13% -27.78%
TOTAL LIABILITIES
Total Short-Term Liabilities $39.00M
Total Long-Term Liabilities $1.810B $9.618B $11.20B
Total Liabilities $12.33B $12.30B $14.43B
YoY Change -9.67% -14.78% -26.16%
SHAREHOLDERS EQUITY
Retained Earnings $2.858B $2.838B $2.157B
YoY Change 24.86% 31.57% 53.74%
Common Stock $281.0M $281.0M $278.0M
YoY Change 1.08% 1.08% 1.09%
Preferred Stock
YoY Change
Treasury Stock (at cost) $2.359B $2.347B $2.318B
YoY Change 1.77% 1.25% 1.89%
Treasury Stock Shares 89.41M shares 88.17M shares 85.55M shares
Shareholders Equity $3.929B $3.881B $3.180B
YoY Change
Total Liabilities & Shareholders Equity $16.28B $16.20B $17.63B
YoY Change -3.95% -8.12% -20.33%

Cashflow Statement

Concept 2014 Q4 2014 Q3 2013 Q3
OPERATING ACTIVITIES
Net Income $20.00M $173.0M $132.0M
YoY Change -84.85% 31.06% 1785.71%
Depreciation, Depletion And Amortization
YoY Change
Cash From Operating Activities $17.00M $46.00M -$138.0M
YoY Change -97.86% -133.33% -16.36%
INVESTING ACTIVITIES
Capital Expenditures -$4.000M -$6.000M -$1.000M
YoY Change 300.0% 500.0% 0.0%
Acquisitions
YoY Change
Other Investing Activities $359.0M $139.0M $551.0M
YoY Change -218.87% -74.77% -16.77%
Cash From Investing Activities $355.0M $133.0M $550.0M
YoY Change -217.16% -75.82% -16.79%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -138.0M -165.0M -322.0M
YoY Change -59.65% -48.76% -31.34%
NET CHANGE
Cash From Operating Activities 17.00M 46.00M -138.0M
Cash From Investing Activities 355.0M 133.0M 550.0M
Cash From Financing Activities -138.0M -165.0M -322.0M
Net Change In Cash 234.0M 14.00M 90.00M
YoY Change 54.97% -84.44% 233.33%
FREE CASH FLOW
Cash From Operating Activities $17.00M $46.00M -$138.0M
Capital Expenditures -$4.000M -$6.000M -$1.000M
Free Cash Flow $21.00M $52.00M -$137.0M
YoY Change -97.37% -137.96% -16.46%

Facts In Submission

Frame Concept Type Concept / XBRL Key Value Unit
dei Trading Symbol
TradingSymbol
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dei Entity Registrant Name
EntityRegistrantName
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dei Entity Central Index Key
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CurrentFiscalYearEndDate
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dei Entity Filer Category
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dei Document Type
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dei Entity Current Reporting Status
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us-gaap Nature Of Operations
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<div><p style='text-align:left;margin-top:4.5pt;margin-bottom:4.5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;font-style:italic;margin-left:0pt;' >Summary</font></p><p style='text-align:left;margin-top:0pt;margin-bottom:9pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >MBIA Inc., together with its consolidated subsidiaries, (collectively, &#8220;MBIA&#8221; or the &#8220;Company&#8221;) operates one of the largest financial guarantee insurance businesses in the industry and is a provider of asset management and advisory services. These</font><font style='font-family:Times New Roman;font-size:10pt;' > activities are managed through three business segments: United States (&#8220;U.S.&#8221;) public finance insurance; structured finance and international insurance; and advisory services. The Company&#8217;s U.S. public finance insurance business is primarily operated thro</font><font style='font-family:Times New Roman;font-size:10pt;' >ugh National Public Finance Guarantee Corporation and its subsidiaries (&#8220;National&#8221;), its structured finance and international insurance business is primarily operated through MBIA Insurance Corporation and its subsidiaries (&#8220;MBIA Corp.&#8221;), and its asset man</font><font style='font-family:Times New Roman;font-size:10pt;' >agement and advisory services business is primarily operated through Cutwater Holdings, LLC and its subsidiaries (&#8220;Cutwater&#8221;). Unless otherwise indicated or the context otherwise requires, references to &#8220;MBIA Corp.&#8221; are to MBIA Insurance Corporation, toget</font><font style='font-family:Times New Roman;font-size:10pt;' >her with its subsidiaries, MBIA UK Insurance Limited (&#8220;MBIA UK&#8221;) and MBIA Mexico S.A. de C.V. MBIA Inc. and certain of its subsidiaries also manage certain other business activities, the results of which are reported in the corporate, asset/liability produ</font><font style='font-family:Times New Roman;font-size:10pt;' >cts, and conduit segments. The corporate segment includes revenues and expenses that arise from general corporate activities. While the asset/liability products and conduit businesses represent separate business segments, they may be referred to collective</font><font style='font-family:Times New Roman;font-size:10pt;' >ly as &#8220;wind-down operations&#8221; as the funding programs managed through those businesses are in wind-down. Refer to &#8220;</font><font style='font-family:Times New Roman;font-size:10pt;' >Note 10: Business Segments</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8221; for further information about the Company&#8217;s reporting segments.</font></p><p style='text-align:left;margin-top:13.5pt;margin-bottom:4.5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;font-style:italic;margin-left:0pt;' >Business Developments</font></p><p style='text-align:left;margin-top:4.5pt;margin-bottom:0pt;line-height:13.8pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:0pt;' >National Ratings and New Business Opportuni</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >ties</font></p><p style='text-align:left;margin-top:4.5pt;margin-bottom:9pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >National&#8217;s ability to write new business and compete with other financial guarantors is largely dependent on the financial strength ratings assigned to National by major rating agencies. As of </font><font style='font-family:Times New Roman;font-size:10pt;' >September 30,</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >2014</font><font style='font-family:Times New Roman;font-size:10pt;' >, National was rated </font><font style='font-family:Times New Roman;font-size:10pt;' >AA+ with a stable</font><font style='font-family:Times New Roman;font-size:10pt;' > outlook by Kroll Bond Rating Agency, AA</font><font style='font-family:Times New Roman;font-size:10pt;' >- with a stable outlook</font><font style='font-family:Times New Roman;font-size:10pt;' > by </font><font style='font-family:Times New Roman;font-size:10pt;' >Standard&#160;&amp; Poor&#8217;s Financial Services LLC (&#8220;S&amp;P&#8221;)</font><font style='font-family:Times New Roman;font-size:10pt;' >, and A3 with a negative outlook by </font><font style='font-family:Times New Roman;font-size:10pt;' >Moody&#8217;s Investors Service, Inc. (&#8220;Moody&#8217;s&#8221;)</font><font style='font-family:Times New Roman;font-size:10pt;' >. </font></p><p style='text-align:left;margin-top:0pt;margin-bottom:4.5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >National seeks to generate shareholder value through approp</font><font style='font-family:Times New Roman;font-size:10pt;' >riate risk adjusted pricing; however, current market conditions and the competitive landscape may limit National&#8217;s new business opportunities and its abilities to price and underwrite risk with attractive returns.&#160;Refer to &#8220;Risks and Uncertainties&#8221; below f</font><font style='font-family:Times New Roman;font-size:10pt;' >or a discussion of business risks related to National&#8217;s strategy.</font></p><p style='text-align:left;margin-top:13.5pt;margin-bottom:4.5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:0pt;' >MBIA Corp. Risk Reductions</font></p><p style='text-align:left;margin-top:0pt;margin-bottom:9pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >During the </font><font style='font-family:Times New Roman;font-size:10pt;' >nine months ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >September 30,</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >2014</font><font style='font-family:Times New Roman;font-size:10pt;' >, the Company continued to focus on the collection of excess spread and put-back recoveries and the mitigation of MB</font><font style='font-family:Times New Roman;font-size:10pt;' >IA Corp.&#8217;s high risk insurance exposures, primarily through commutations of insurance policies. During the </font><font style='font-family:Times New Roman;font-size:10pt;' >nine months ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >September 30,</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >2014</font><font style='font-family:Times New Roman;font-size:10pt;' >, MBIA Corp. commuted $</font><font style='font-family:Times New Roman;font-size:10pt;' >6.5</font><font style='font-family:Times New Roman;font-size:10pt;' > billion of gross par exposure, primarily comprising structured comme</font><font style='font-family:Times New Roman;font-size:10pt;' >rcial mortgage-backed securities (&#8220;CMBS&#8221;) pools, investment grade corporate collateralized debt obligations (&#8220;CDOs&#8221;), commercial real estate (&#8220;CRE&#8221;) CDOs and asset-backed securities (&#8220;ABS&#8221;). MBIA Corp. may make negotiated settlement payments to counterpart</font><font style='font-family:Times New Roman;font-size:10pt;' >ies and/or forego its right to all or some termination premiums when it commutes insurance exposures. The difference between the fair values of the Company&#8217;s derivative liabilities for the commuted policies and the aggregate cost of the commutation was ref</font><font style='font-family:Times New Roman;font-size:10pt;' >lected in earnings for the </font><font style='font-family:Times New Roman;font-size:10pt;' >nine months ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >September 30,</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >2014</font><font style='font-family:Times New Roman;font-size:10pt;' >. </font></p><p style='text-align:left;margin-top:13.5pt;margin-bottom:4.5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:0pt;' >Other</font></p><p style='text-align:left;margin-top:0pt;margin-bottom:9pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >In October of 2014, the Company signed an agreement to sell Cutwater to a subsidiary of The Bank of New York Mellon Corporation. The sale is expected to close at the beginning of the f</font><font style='font-family:Times New Roman;font-size:10pt;' >irst quarter of 2015, subject to regulatory approval and other customary closing conditions. The transaction is expected to have a positive but immaterial impact on the Company&#8217;s financial position and results of operations.</font></p><p style='text-align:left;margin-top:13.5pt;margin-bottom:4.5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;font-style:italic;margin-left:0pt;' >Risks and Uncertainties</font></p><p style='text-align:left;margin-top:0pt;margin-bottom:4.5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The Com</font><font style='font-family:Times New Roman;font-size:10pt;' >pany&#8217;s financial statements include estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The outcome of certain significant risks and uncertainties could cause the Company to revise its estimates and ass</font><font style='font-family:Times New Roman;font-size:10pt;' >umptions or could cause actual results to differ from the Company&#8217;s estimates. While the Company believes it continues to have sufficient capital and liquidity to meet all of its expected obligations, if one or more possible adverse outcomes were to be rea</font><font style='font-family:Times New Roman;font-size:10pt;' >lized, its financial position, results of operations and cash flows, and its insurance companies&#8217; statutory capital, could be materially and adversely affected. The discussion below highlights the significant risks and uncertainties that could have a mater</font><font style='font-family:Times New Roman;font-size:10pt;' >ial effect on the Company&#8217;s financial statements and business objectives in future periods. </font></p><p style='text-align:left;margin-top:0pt;margin-bottom:4.5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' > </font></p><p style='text-align:left;margin-top:9pt;margin-bottom:4.5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:0pt;' >MBIA Inc. Liquidity </font></p><p style='text-align:left;margin-top:0pt;margin-bottom:9pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >As of </font><font style='font-family:Times New Roman;font-size:10pt;' >September 30,</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >2014</font><font style='font-family:Times New Roman;font-size:10pt;' >, the liquidity position of MBIA Inc., which consists of the liquidity positions of its corporate and asset/liability products segments, was </font><font style='font-family:Times New Roman;font-size:10pt;' >$</font><font style='font-family:Times New Roman;font-size:10pt;' >348</font><font style='font-family:Times New Roman;font-size:10pt;' > million, and comprised cash and liquid assets of $</font><font style='font-family:Times New Roman;font-size:10pt;' >297</font><font style='font-family:Times New Roman;font-size:10pt;' > million available for gene</font><font style='font-family:Times New Roman;font-size:10pt;' >ral liquidity purposes</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >and $</font><font style='font-family:Times New Roman;font-size:10pt;' >51</font><font style='font-family:Times New Roman;font-size:10pt;' > million not pledged directly as collateral for its asset/liability products segment</font><font style='font-family:Times New Roman;font-size:10pt;' >. As of </font><font style='font-family:Times New Roman;font-size:10pt;' >December 31,</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >2013</font><font style='font-family:Times New Roman;font-size:10pt;' >, MBIA Inc. had $</font><font style='font-family:Times New Roman;font-size:10pt;' >359</font><font style='font-family:Times New Roman;font-size:10pt;' > million of cash and liquid assets comprising $</font><font style='font-family:Times New Roman;font-size:10pt;' >307</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >million available for general corporate liquidity purposes and $</font><font style='font-family:Times New Roman;font-size:10pt;' >52</font><font style='font-family:Times New Roman;font-size:10pt;' > million not pledged directly as collateral for its asset/liability products segment. During the </font><font style='font-family:Times New Roman;font-size:10pt;' >nine months ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >September 30,</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >2014</font><font style='font-family:Times New Roman;font-size:10pt;' >, </font><font style='font-family:Times New Roman;font-size:10pt;' >$</font><font style='font-family:Times New Roman;font-size:10pt;' >220</font><font style='font-family:Times New Roman;font-size:10pt;' > million was released</font><font style='font-family:Times New Roman;font-size:10pt;' > to MBIA Inc. under the MBIA group&#8217;s tax sharing agreement (the &#8220;Tax Escrow Account&#8221;). Subsequent to September 30, 2014, National declared and paid a dividend of $</font><font style='font-family:Times New Roman;font-size:10pt;' >220</font><font style='font-family:Times New Roman;font-size:10pt;' > million to its ultimate parent, MBIA Inc. While MBIA Inc.&#8217;s liquidity position slightly i</font><font style='font-family:Times New Roman;font-size:10pt;' >mproved during the </font><font style='font-family:Times New Roman;font-size:10pt;' >nine months ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >September 30,</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >2014</font><font style='font-family:Times New Roman;font-size:10pt;' > due to the Tax Escrow Account release, MBIA Inc. continues to have liquidity risk. If invested asset performance deteriorates or the flow of dividends from subsidiaries is interrupted and/or access to</font><font style='font-family:Times New Roman;font-size:10pt;' > the capital markets is impaired, its liquidity position could be eroded over time. While the Company expects that MBIA Inc. will generate sufficient cash to satisfy its debt obligations and its general corporate needs over time from distributions from its</font><font style='font-family:Times New Roman;font-size:10pt;' > operating subsidiaries and payments under the Tax Escrow Account once the payments become unrestricted, there can be no assurance that such sources will generate sufficient cash. In addition, a failure by MBIA Inc. to settle liabilities that are also insu</font><font style='font-family:Times New Roman;font-size:10pt;' >red by MBIA Corp. could result in claims on MBIA Corp. </font></p><p style='text-align:left;margin-top:0pt;margin-bottom:4.5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:0pt;' >U.S. Public Finance Market Conditions</font></p><p style='text-align:left;margin-top:0pt;margin-bottom:4.5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The majority of National&#8217;s new business is expected to be in the general obligation, tax-backed and revenue bond sectors.&#160;In addition to the new issue market, </font><font style='font-family:Times New Roman;font-size:10pt;' >there are attractive opportunities in the secondary market with respect to bonds issued in recent years which were not insured upon issuance and which meet National&#8217;s underwriting criteria. Nonetheless, as a result of intense competition and the diminished</font><font style='font-family:Times New Roman;font-size:10pt;' > use of financial guarantee insurance in the municipal finance market, among other factors, there can be no assurance that National will be able to write business that generates attractive returns. Financial guarantee insurance competes in nearly all insta</font><font style='font-family:Times New Roman;font-size:10pt;' >nces with the issuer&#8217;s alternative of foregoing insurance and paying a higher interest rate. If the interest savings from insurance are not greater than the cost of the insurance, the issuer will generally choose to issue bonds without insurance.</font></p><p style='text-align:left;margin-top:0pt;margin-bottom:4.5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >Prevailin</font><font style='font-family:Times New Roman;font-size:10pt;' >g interest rate levels can affect demand for financial guarantee insurance. Higher interest rates and higher levels of issuance of new municipal debt would present more favorable new business opportunities for National in the U.S. public finance market. Lo</font><font style='font-family:Times New Roman;font-size:10pt;' >wer interest rates are typically accompanied by narrower spread</font><font style='font-family:Times New Roman;font-size:10pt;' >s between insured and uninsured obligations. This is, in part, due to the fact that investors may choose to forego insurance to increase the yield on their investment. Therefore, the purchase o</font><font style='font-family:Times New Roman;font-size:10pt;' >f insurance during periods of relatively narrower interest rate spreads will generally provide lower cost savings to the issuer than during periods of relatively wider spreads.</font></p><p style='text-align:left;margin-top:0pt;margin-bottom:9pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >National&#8217;s insured portfolio continued to perform satisfactorily on the </font><font style='font-family:Times New Roman;font-size:10pt;' >whole,</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >however portions of the obligations that the Company insure</font><font style='font-family:Times New Roman;font-size:10pt;' >d</font><font style='font-family:Times New Roman;font-size:10pt;' > were issued by a few of the state and local governments and territories that remain under financial and budgetary stress. In addition, a few of these local governments have filed for protection </font><font style='font-family:Times New Roman;font-size:10pt;' >under Chapter 9 of the United States Bankruptcy Code or have entered into state statutory proceedings established to assist municipalities in managing through periods of severe fiscal stress. This could lead to an increase in defaults by such entities on t</font><font style='font-family:Times New Roman;font-size:10pt;' >he payment of their obligations and losses or impairments on a greater number of the Company&#8217;s insured transactions. The Company monitors and analyzes these situations and other stressed credits closely, and the overall extent and duration of this stress i</font><font style='font-family:Times New Roman;font-size:10pt;' >s uncertain. </font></p><p style='text-align:left;margin-top:9pt;margin-bottom:4.5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:0pt;' >MBIA Corp. Recoveri</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >es and Insured Portfolio </font></p><p style='text-align:left;margin-top:0pt;margin-bottom:4.5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The amount and timing of projected collections from excess spread from second-lien residential mortgage-backed securities (&#8220;RMBS&#8221;) and </font><font style='font-family:Times New Roman;font-size:10pt;' >the </font><font style='font-family:Times New Roman;font-size:10pt;' >put-back recoverable from Credit Suisse Securities (USA) </font><font style='font-family:Times New Roman;font-size:10pt;' >LLC, DLJ Mortgage Capital, Inc., and Select Portfolio Servicing Inc. (collectively, &#8220;Credit Suisse&#8221;) and the potential of claims from MBIA Corp.&#8217;s remaining insured CMBS pools and RMBS are uncertain. Further, the remaining insured portfolio, aside from the</font><font style='font-family:Times New Roman;font-size:10pt;' >se exposures, could deteriorate and result in additional significant loss reserves and claim payments. Management&#8217;s expected liquidity and capital forecasts for MBIA Corp., which include expected excess spread recoveries and put-back recoveries from Credit</font><font style='font-family:Times New Roman;font-size:10pt;' > Suisse, reflect adequate resources to pay claims when due. However, if MBIA Corp. experiences higher than expected claim payments or is unable to terminate the remaining exposures that represent substantial risk to the Company, MBIA Corp. may ultimately h</font><font style='font-family:Times New Roman;font-size:10pt;' >ave insufficient resources to continue to pay claims, which could cause the New York State Department of Financial Services (&#8220;NYSDFS&#8221;) to put </font><font style='font-family:Times New Roman;font-size:10pt;' >MBIA</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >Corp</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font><font style='font-family:Times New Roman;font-size:10pt;' >, exclusive of </font><font style='font-family:Times New Roman;font-size:10pt;' >MBIA</font><font style='font-family:Times New Roman;font-size:10pt;' > UK, </font><font style='font-family:Times New Roman;font-size:10pt;' >into a rehabilitation or liquidation proceeding. Such a procee</font><font style='font-family:Times New Roman;font-size:10pt;' >ding could have an adverse impact on MBIA Inc. and would result in material adverse consequences for MBIA Corp., including the termination of insured credit default swaps (&#8220;CDS&#8221;) contracts for which counterparties may assert market-based claims, the accele</font><font style='font-family:Times New Roman;font-size:10pt;' >ration of debt obligations issued by affiliates and insured by MBIA Corp., the loss of control of MBIA</font><font style='font-family:Times New Roman;font-size:10pt;' > Corp., exclusive of </font><font style='font-family:Times New Roman;font-size:10pt;' >MBIA</font><font style='font-family:Times New Roman;font-size:10pt;' > UK</font><font style='font-family:Times New Roman;font-size:10pt;' >, </font><font style='font-family:Times New Roman;font-size:10pt;' >to a rehabilitator or liquidator, and unplanned costs.</font></p><p style='text-align:left;margin-top:0pt;margin-bottom:4.5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >Refer to &#8220;</font><font style='font-family:Times New Roman;font-size:10pt;' >Note 5: Loss and Loss Adjustment Expense Reserves</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8221; for information about </font><font style='font-family:Times New Roman;font-size:10pt;' >M</font><font style='font-family:Times New Roman;font-size:10pt;' >BIA</font><font style='font-family:Times New Roman;font-size:10pt;' > Corp</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8217;s loss reserves and recoveries. </font></p><p style='text-align:left;margin-top:0pt;margin-bottom:4.5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >Management does not believe that a rehabilitation or liquidation proceeding of MBIA </font><font style='font-family:Times New Roman;font-size:10pt;' >Corp., exclusive of </font><font style='font-family:Times New Roman;font-size:10pt;' >MBIA</font><font style='font-family:Times New Roman;font-size:10pt;' > UK</font><font style='font-family:Times New Roman;font-size:10pt;' >, </font><font style='font-family:Times New Roman;font-size:10pt;' >by the NYSDFS will have any significant long-term liquidity impact on MBIA In</font><font style='font-family:Times New Roman;font-size:10pt;' >c. or result in </font><font style='font-family:Times New Roman;font-size:10pt;' >a liquidation</font><font style='font-family:Times New Roman;font-size:10pt;' > or similar proceeding of MBIA UK.</font></p></div>
mbi Losses And Loss Adjustment Expenses Related To Actual And Expected Payments
LossesAndLossAdjustmentExpensesRelatedToActualAndExpectedPayments
-56000000 USD
mbi Recoveries Of Actual And Expected Payments
RecoveriesOfActualAndExpectedPayments
138000000 USD
mbi Losses Incurred Gross Of Reinsurance
LossesIncurredGrossOfReinsurance
82000000 USD
us-gaap Reinsurance Costs And Recoveries Net
ReinsuranceCostsAndRecoveriesNet
0 USD
CY2014Q3 mbi Number Of Policies
NumberOfPolicies
339
CY2014Q3 us-gaap Schedule Of Insured Financial Obligations With Credit Deterioration Number Of Contracts Issued And Outstanding
ScheduleOfInsuredFinancialObligationsWithCreditDeteriorationNumberOfContractsIssuedAndOutstanding
156
CY2014Q3 us-gaap Schedule Of Insured Financial Obligations With Credit Deterioration Insured Contractual Payments Outstanding Principal
ScheduleOfInsuredFinancialObligationsWithCreditDeteriorationInsuredContractualPaymentsOutstandingPrincipal
12424000000 USD
CY2014Q3 us-gaap Schedule Of Insured Financial Obligations With Credit Deterioration Insured Contractual Payments Outstanding Interest
ScheduleOfInsuredFinancialObligationsWithCreditDeteriorationInsuredContractualPaymentsOutstandingInterest
7270000000 USD
CY2014Q3 us-gaap Schedule Of Insured Financial Obligations With Credit Deterioration Insured Contractual Payments Outstanding
ScheduleOfInsuredFinancialObligationsWithCreditDeteriorationInsuredContractualPaymentsOutstanding
19694000000 USD
CY2014Q3 us-gaap Schedule Of Insured Financial Obligations With Credit Deterioration Gross Claim Liability
ScheduleOfInsuredFinancialObligationsWithCreditDeteriorationGrossClaimLiability
841000000 USD
CY2014Q3 us-gaap Schedule Of Insured Financial Obligations With Credit Deterioration Reductions Of Gross Claim Liability Gross Potential Recoveries
ScheduleOfInsuredFinancialObligationsWithCreditDeteriorationReductionsOfGrossClaimLiabilityGrossPotentialRecoveries
798000000 USD
CY2014Q3 us-gaap Schedule Of Insured Financial Obligations With Credit Deterioration Reductions Of Gross Claim Liability Net Discount
ScheduleOfInsuredFinancialObligationsWithCreditDeteriorationReductionsOfGrossClaimLiabilityNetDiscount
120000000 USD
CY2014Q3 us-gaap Schedule Of Insured Financial Obligations With Credit Deterioration Net Claim Liability
ScheduleOfInsuredFinancialObligationsWithCreditDeteriorationNetClaimLiability
-77000000 USD
CY2014Q3 us-gaap Schedule Of Insured Financial Obligations With Credit Deterioration Statement Of Financial Position Unearned Premium Revenue
ScheduleOfInsuredFinancialObligationsWithCreditDeteriorationStatementOfFinancialPositionUnearnedPremiumRevenue
213000000 USD
CY2013Q4 us-gaap Schedule Of Insured Financial Obligations With Credit Deterioration Reductions Of Gross Claim Liability Gross Potential Recoveries
ScheduleOfInsuredFinancialObligationsWithCreditDeteriorationReductionsOfGrossClaimLiabilityGrossPotentialRecoveries
1085000000 USD
CY2013Q4 mbi Number Of Policies
NumberOfPolicies
299
CY2013Q4 us-gaap Schedule Of Insured Financial Obligations With Credit Deterioration Gross Claim Liability
ScheduleOfInsuredFinancialObligationsWithCreditDeteriorationGrossClaimLiability
1235000000 USD
CY2013Q4 us-gaap Schedule Of Insured Financial Obligations With Credit Deterioration Insured Contractual Payments Outstanding
ScheduleOfInsuredFinancialObligationsWithCreditDeteriorationInsuredContractualPaymentsOutstanding
22896000000 USD
CY2013Q4 us-gaap Schedule Of Insured Financial Obligations With Credit Deterioration Number Of Contracts Issued And Outstanding
ScheduleOfInsuredFinancialObligationsWithCreditDeteriorationNumberOfContractsIssuedAndOutstanding
180
CY2013Q4 us-gaap Schedule Of Insured Financial Obligations With Credit Deterioration Statement Of Financial Position Unearned Premium Revenue
ScheduleOfInsuredFinancialObligationsWithCreditDeteriorationStatementOfFinancialPositionUnearnedPremiumRevenue
227000000 USD
CY2013Q4 us-gaap Schedule Of Insured Financial Obligations With Credit Deterioration Insured Contractual Payments Outstanding Principal
ScheduleOfInsuredFinancialObligationsWithCreditDeteriorationInsuredContractualPaymentsOutstandingPrincipal
14264000000 USD
CY2013Q4 us-gaap Schedule Of Insured Financial Obligations With Credit Deterioration Insured Contractual Payments Outstanding Interest
ScheduleOfInsuredFinancialObligationsWithCreditDeteriorationInsuredContractualPaymentsOutstandingInterest
8632000000 USD
CY2013Q4 us-gaap Schedule Of Insured Financial Obligations With Credit Deterioration Reductions Of Gross Claim Liability Net Discount
ScheduleOfInsuredFinancialObligationsWithCreditDeteriorationReductionsOfGrossClaimLiabilityNetDiscount
205000000 USD
CY2013Q4 us-gaap Schedule Of Insured Financial Obligations With Credit Deterioration Net Claim Liability
ScheduleOfInsuredFinancialObligationsWithCreditDeteriorationNetClaimLiability
-55000000 USD
CY2013 us-gaap Insured Financial Obligations With Credit Deterioration Remaining Weighted Average Contract Period
InsuredFinancialObligationsWithCreditDeteriorationRemainingWeightedAverageContractPeriod
P9Y8M12D
mbi Increase Decrease In Loss Adjustment Expense Recoveries
IncreaseDecreaseInLossAdjustmentExpenseRecoveries
9000000 USD
mbi Insurance Loss Recoverable And Changes In Recoveries Of Unpaid Losses Accretion Of Recoveries
InsuranceLossRecoverableAndChangesInRecoveriesOfUnpaidLossesAccretionOfRecoveries
13000000 USD
mbi Collections For Cases With Recoveries
CollectionsForCasesWithRecoveries
84000000 USD
mbi Insurance Loss Recoverable And Changes In Recoveries Of Unpaid Losses Change In Assumptions
InsuranceLossRecoverableAndChangesInRecoveriesOfUnpaidLossesChangeInAssumptions
-191000000 USD
CY2013Q4 mbi Insurance Loss Recoverable And Changes In Recoveries Of Unpaid Losses
InsuranceLossRecoverableAndChangesInRecoveriesOfUnpaidLosses
900000000 USD
CY2014Q3 mbi Insurance Loss Recoverable And Changes In Recoveries Of Unpaid Losses
InsuranceLossRecoverableAndChangesInRecoveriesOfUnpaidLosses
670000000 USD
mbi Insurance Loss Recoverable And Changes In Recoveries Of Unpaid Losses Change In Discount Rate
InsuranceLossRecoverableAndChangesInRecoveriesOfUnpaidLossesChangeInDiscountRate
22000000 USD
mbi Insurance Loss Recoverable And Changes In Recoveries Of Unpaid Losses Other
InsuranceLossRecoverableAndChangesInRecoveriesOfUnpaidLossesOther
1000000 USD
CY2014Q3 us-gaap Available For Sale Securities Amortized Cost
AvailableForSaleSecuritiesAmortizedCost
6748000000 USD
CY2014Q3 us-gaap Held To Maturity Securities Fair Value
HeldToMaturitySecuritiesFairValue
2730000000 USD
CY2014Q3 mbi Available For Sale Cumulative Other Than Temporary Impairment Of Securities
AvailableForSaleCumulativeOtherThanTemporaryImpairmentOfSecurities
83000000 USD
CY2014Q3 mbi Held To Maturity Cumulative Other Than Temporary Impairment Of Securities
HeldToMaturityCumulativeOtherThanTemporaryImpairmentOfSecurities
0 USD
CY2014Q3 mbi Available For Sale Securities Gross Unrealized Gain Accumulated In Investments
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments
164000000 USD
CY2014Q3 mbi Available For Sale Securities Gross Unrealized Loss Accumulated In Investments
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInInvestments
164000000 USD
CY2014Q3 us-gaap Available For Sale Securities
AvailableForSaleSecurities
6748000000 USD
CY2014Q3 us-gaap Held To Maturity Securities
HeldToMaturitySecurities
2772000000 USD
CY2014Q3 mbi Held To Maturity Securities Accumulated Unrecognized Holding Gain
HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingGain
102000000 USD
CY2014Q3 mbi Held To Maturity Securities Accumulated Unrecognized Holding Loss
HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingLoss
144000000 USD
CY2013Q4 us-gaap Available For Sale Securities Amortized Cost
AvailableForSaleSecuritiesAmortizedCost
6824000000 USD
CY2013Q4 us-gaap Held To Maturity Securities Fair Value
HeldToMaturitySecuritiesFairValue
2651000000 USD
CY2013Q4 mbi Available For Sale Cumulative Other Than Temporary Impairment Of Securities
AvailableForSaleCumulativeOtherThanTemporaryImpairmentOfSecurities
10000000 USD
CY2013Q4 mbi Held To Maturity Cumulative Other Than Temporary Impairment Of Securities
HeldToMaturityCumulativeOtherThanTemporaryImpairmentOfSecurities
0 USD
CY2013Q4 mbi Available For Sale Securities Gross Unrealized Gain Accumulated In Investments
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments
97000000 USD
CY2013Q4 mbi Available For Sale Securities Gross Unrealized Loss Accumulated In Investments
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInInvestments
229000000 USD
CY2013Q4 us-gaap Available For Sale Securities
AvailableForSaleSecurities
6692000000 USD
CY2013Q4 us-gaap Held To Maturity Securities
HeldToMaturitySecurities
2801000000 USD
CY2013Q4 mbi Held To Maturity Securities Accumulated Unrecognized Holding Gain
HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingGain
31000000 USD
CY2013Q4 mbi Held To Maturity Securities Accumulated Unrecognized Holding Loss
HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingLoss
181000000 USD
CY2014Q3 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue
1006000000 USD
CY2014Q3 us-gaap Held To Maturity Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value
HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue
0 USD
CY2014Q3 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or Longer Fair Value
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue
1373000000 USD
CY2014Q3 us-gaap Held To Maturity Securities Continuous Unrealized Loss Position Twelve Months Or Longer Fair Value
HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue
431000000 USD
CY2014Q3 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Fair Value
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionFairValue
2379000000 USD
CY2014Q3 us-gaap Held To Maturity Securities Continuous Unrealized Loss Position Fair Value
HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue
431000000 USD
CY2014Q3 mbi Available For Sale Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses Accumulated In Investments
AvailableForSaleSecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAggregateLossesAccumulatedInInvestments
80000000 USD
CY2014Q3 mbi Held To Maturity Securities Continuous Unrealized Loss Position Less Than12 Months Accumulated Loss
HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss
0 USD
CY2014Q3 mbi Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Accumulated Loss
HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss
144000000 USD
CY2014Q3 mbi Available For Sale Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses Accumulated In Investments
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAggregateLossesAccumulatedInInvestments
84000000 USD
CY2014Q3 mbi Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Accumulated In Investments
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionAggregateLossesAccumulatedInInvestments
164000000 USD
CY2014Q3 mbi Held To Maturity Securities Continuous Unrealized Loss Position Accumulated Loss
HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss
144000000 USD
CY2013Q4 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue
2978000000 USD
CY2013Q4 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or Longer Fair Value
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue
479000000 USD
CY2013Q4 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Fair Value
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionFairValue
3457000000 USD
CY2013Q4 us-gaap Held To Maturity Securities Continuous Unrealized Loss Position Fair Value
HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue
1244000000 USD
CY2013Q4 us-gaap Held To Maturity Securities Continuous Unrealized Loss Position Twelve Months Or Longer Fair Value
HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue
1244000000 USD
CY2013Q4 mbi Available For Sale Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses Accumulated In Investments
AvailableForSaleSecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAggregateLossesAccumulatedInInvestments
101000000 USD
CY2013Q4 us-gaap Held To Maturity Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value
HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue
0 USD
CY2013Q4 mbi Held To Maturity Securities Continuous Unrealized Loss Position Less Than12 Months Accumulated Loss
HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss
0 USD
CY2013Q4 mbi Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Accumulated Loss
HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss
181000000 USD
CY2013Q4 mbi Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Accumulated In Investments
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionAggregateLossesAccumulatedInInvestments
229000000 USD
CY2013Q4 mbi Held To Maturity Securities Continuous Unrealized Loss Position Accumulated Loss
HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss
181000000 USD
CY2013Q4 mbi Available For Sale Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses Accumulated In Investments
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAggregateLossesAccumulatedInInvestments
128000000 USD
CY2014Q3 mbi Percentage Of Securities Book Value Exceeded Market Value
PercentageOfSecuritiesBookValueExceededMarketValue
0.05 pure
us-gaap Other Than Temporary Impairment Credit Losses Recognized In Earnings Reductions Securities Sold
OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsReductionsSecuritiesSold
14000000 USD
us-gaap Other Than Temporary Impairment Credit Losses Recognized In Earnings Reductions Securities Sold
OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsReductionsSecuritiesSold
174000000 USD
us-gaap Other Than Temporary Impairment Credit Losses Recognized In Earnings Reductions Cash Flows
OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsReductionsCashFlows
1000000 USD
us-gaap Other Than Temporary Impairment Credit Losses Recognized In Earnings Reductions Cash Flows
OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsReductionsCashFlows
5000000 USD
CY2014Q3 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
12000000 USD
CY2014Q3 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
4000000 USD
us-gaap Other Than Temporary Impairment Credit Losses Recognized In Earnings Additions No Previous Impairment
OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsAdditionsNoPreviousImpairment
14000000 USD
us-gaap Other Than Temporary Impairment Credit Losses Recognized In Earnings Additions No Previous Impairment
OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsAdditionsNoPreviousImpairment
0 USD
CY2013Q4 us-gaap Other Than Temporary Impairment Credit Losses Recognized In Earnings Credit Losses On Debt Securities Held
OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsCreditLossesOnDebtSecuritiesHeld
175000000 USD
CY2012Q4 us-gaap Other Than Temporary Impairment Credit Losses Recognized In Earnings Credit Losses On Debt Securities Held
OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsCreditLossesOnDebtSecuritiesHeld
197000000 USD
us-gaap Available For Sale Securities Gross Realized Gains
AvailableForSaleSecuritiesGrossRealizedGains
61000000 USD
us-gaap Available For Sale Securities Gross Realized Losses
AvailableForSaleSecuritiesGrossRealizedLosses
13000000 USD
us-gaap Available For Sale Securities Gross Realized Gains
AvailableForSaleSecuritiesGrossRealizedGains
52000000 USD
us-gaap Available For Sale Securities Gross Realized Losses
AvailableForSaleSecuritiesGrossRealizedLosses
25000000 USD
us-gaap Available For Sale Securities Gross Realized Gains Losses Sale Proceeds
AvailableForSaleSecuritiesGrossRealizedGainsLossesSaleProceeds
594000000 USD
us-gaap Available For Sale Securities Gross Realized Gains Losses Sale Proceeds
AvailableForSaleSecuritiesGrossRealizedGainsLossesSaleProceeds
1497000000 USD
mbi Weighted Average Contractual Maturity Period Of Securities Unrealized Loss Position
WeightedAverageContractualMaturityPeriodOfSecuritiesUnrealizedLossPosition
P15Y
CY2013 mbi Weighted Average Contractual Maturity Period Of Securities Unrealized Loss Position
WeightedAverageContractualMaturityPeriodOfSecuritiesUnrealizedLossPosition
P18Y
mbi Number Of Credit Support Annexes
NumberOfCreditSupportAnnexes
1 pure
CY2013 mbi Number Of Credit Support Annexes
NumberOfCreditSupportAnnexes
1 pure
mbi Premiums Earned Net Financial Guarantee Insurance Contracts And Insured Derivatives
PremiumsEarnedNetFinancialGuaranteeInsuranceContractsAndInsuredDerivatives
308000000 USD
mbi Premiums Earned Net Financial Guarantee Insurance Contracts And Insured Derivatives
PremiumsEarnedNetFinancialGuaranteeInsuranceContractsAndInsuredDerivatives
377000000 USD
us-gaap Undistributed Earnings Allocated To Participating Securities
UndistributedEarningsAllocatedToParticipatingSecurities
15000000 USD
us-gaap Undistributed Earnings Allocated To Participating Securities
UndistributedEarningsAllocatedToParticipatingSecurities
3000000 USD
us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
534000000 USD
us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
115000000 USD
us-gaap Fair Value Adjustment Of Warrants
FairValueAdjustmentOfWarrants
32000000 USD
us-gaap Fair Value Adjustment Of Warrants
FairValueAdjustmentOfWarrants
6000000 USD
us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
503000000 USD
us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
110000000 USD
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
1126134 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
1230599 shares
us-gaap Incremental Common Shares Attributable To Call Options And Warrants
IncrementalCommonSharesAttributableToCallOptionsAndWarrants
2061719 shares
us-gaap Incremental Common Shares Attributable To Call Options And Warrants
IncrementalCommonSharesAttributableToCallOptionsAndWarrants
2705912 shares
mbi Unvested Restricted Stock And Units That Receive Nonforfeitable Dividends Or Dividend Equivalents That Have Met Service Condition
UnvestedRestrictedStockAndUnitsThatReceiveNonforfeitableDividendsOrDividendEquivalentsThatHaveMetServiceCondition
636570 shares
mbi Unvested Restricted Stock And Units That Receive Nonforfeitable Dividends Or Dividend Equivalents That Have Met Service Condition
UnvestedRestrictedStockAndUnitsThatReceiveNonforfeitableDividendsOrDividendEquivalentsThatHaveMetServiceCondition
315018 shares
us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
-18000000 USD
us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
OtherComprehensiveIncomeLossBeforeReclassificationsNetOfTax
54000000 USD
CY2014Q3 us-gaap Operating Leases Future Minimum Payments Due
OperatingLeasesFutureMinimumPaymentsDue
42000000 USD
CY2014Q3 mbi Lease Incentives
LeaseIncentives
6000000 USD
mbi Number Of Other Lawsuits
NumberOfOtherLawsuits
0 Lawsuits
us-gaap Lessee Leasing Arrangements Operating Leases Renewal Term
LesseeLeasingArrangementsOperatingLeasesRenewalTerm
P5Y
mbi Number Of Operating Lease Term Extensions
NumberOfOperatingLeaseTermExtensions
2 pure
CY2014Q3 us-gaap Revenues
Revenues
291000000 USD
CY2013Q3 us-gaap Revenues
Revenues
420000000 USD
us-gaap Revenues
Revenues
1055000000 USD
us-gaap Revenues
Revenues
751000000 USD
CY2014Q3 us-gaap Benefits Losses And Expenses
BenefitsLossesAndExpenses
143000000 USD
CY2014Q3 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodBeforeTax
1000000 USD
CY2013Q3 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodBeforeTax
-15000000 USD
CY2013Q3 us-gaap Benefits Losses And Expenses
BenefitsLossesAndExpenses
249000000 USD
us-gaap Benefits Losses And Expenses
BenefitsLossesAndExpenses
448000000 USD
us-gaap Benefits Losses And Expenses
BenefitsLossesAndExpenses
629000000 USD
CY2014Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
148000000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
607000000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
122000000 USD
CY2014Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-25000000 USD
CY2013Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
39000000 USD
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
58000000 USD
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
4000000 USD
CY2014Q3 us-gaap Net Income Loss
NetIncomeLoss
173000000 USD
CY2013Q3 us-gaap Net Income Loss
NetIncomeLoss
132000000 USD
us-gaap Net Income Loss
NetIncomeLoss
549000000 USD
us-gaap Net Income Loss
NetIncomeLoss
118000000 USD
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q3
CY2013Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
171000000 USD
CY2014Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.9
CY2014Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.8
CY2013Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.68
CY2013Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.52
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
2.83
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
2.62
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.61
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.57
CY2014Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
187104785 shares
CY2014Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
188424318 shares
CY2013Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
188931800 shares
CY2013Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
192581064 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
188428870 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
191616723 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
189094678 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
193031189 shares
CY2014Q3 mbi Percentage Of Insured Credit Derivatives Value Under Direct Price Model And Dual Default Model
PercentageOfInsuredCreditDerivativesValueUnderDirectPriceModelAndDualDefaultModel
0.06 pure
CY2014Q3 mbi Percentage Of Sector Specific Transactions Valued Using Bet Model
PercentageOfSectorSpecificTransactionsValuedUsingBetModel
0.06 pure
CY2014Q3 mbi Percentage Of Transactions Valued Using Corporate Spread
PercentageOfTransactionsValuedUsingCorporateSpread
0.44 pure
CY2014Q3 mbi Percentage Of Transactions Valued Using Spread Benchmark From Most Relevant Spread Source
PercentageOfTransactionsValuedUsingSpreadBenchmarkFromMostRelevantSpreadSource
0.5 pure
CY2014Q3 mbi Percentage Of Transactions Valued Using Warf Sourced And Or Ratings Source Credit Spread
PercentageOfTransactionsValuedUsingWarfSourcedAndOrRatingsSourceCreditSpread
0.76 pure
CY2014Q3 us-gaap Derivative Assets Liabilities At Fair Value Net
DerivativeAssetsLiabilitiesAtFairValueNet
284000000 USD
CY2013Q4 us-gaap Derivative Assets Liabilities At Fair Value Net
DerivativeAssetsLiabilitiesAtFairValueNet
1200000000 USD
CY2014Q3 mbi Impact Of Non Performance Risk On Insured Derivative Liability
ImpactOfNonPerformanceRiskOnInsuredDerivativeLiability
94000000 USD
CY2013Q4 mbi Impact Of Non Performance Risk On Insured Derivative Liability
ImpactOfNonPerformanceRiskOnInsuredDerivativeLiability
394000000 USD
CY2014Q3 mbi Approximate Percentage Of Level3 Assets At Fair Value In Total Assets Measured At Fair Value
ApproximatePercentageOfLevel3AssetsAtFairValueInTotalAssetsMeasuredAtFairValue
0.22 pure
CY2013Q4 mbi Approximate Percentage Of Level3 Assets At Fair Value In Total Assets Measured At Fair Value
ApproximatePercentageOfLevel3AssetsAtFairValueInTotalAssetsMeasuredAtFairValue
0.22 pure
CY2014Q3 mbi Approximate Percentage Of Level3 Liabilities At Fair Value In Total Liabilities Measured At Fair Value
ApproximatePercentageOfLevel3LiabilitiesAtFairValueInTotalLiabilitiesMeasuredAtFairValue
0.41 pure
CY2013Q4 mbi Approximate Percentage Of Level3 Liabilities At Fair Value In Total Liabilities Measured At Fair Value
ApproximatePercentageOfLevel3LiabilitiesAtFairValueInTotalLiabilitiesMeasuredAtFairValue
0.61 pure
CY2014Q3 mbi Transfers Into Level Three
TransfersIntoLevelThree
55000000 USD
CY2014Q3 mbi Transfers Out Of Level Three
TransfersOutOfLevelThree
1000000 USD
CY2014Q3 mbi Transfers Into Level Two
TransfersIntoLevelTwo
1000000 USD
CY2014Q3 mbi Transfers Out Of Level Two
TransfersOutOfLevelTwo
55000000 USD
CY2013Q3 mbi Transfers Into Level Three
TransfersIntoLevelThree
41000000 USD
CY2013Q3 mbi Transfers Out Of Level Three
TransfersOutOfLevelThree
34000000 USD
CY2013Q3 mbi Transfers Into Level Two
TransfersIntoLevelTwo
34000000 USD
CY2013Q3 mbi Transfers Out Of Level Two
TransfersOutOfLevelTwo
41000000 USD
us-gaap Adjustments To Additional Paid In Capital Tax Effect From Share Based Compensation
AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation
2000000 USD
CY2013Q3 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
-9000000 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
121000000 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
-100000000 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodBeforeTax
185000000 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodBeforeTax
-155000000 USD
CY2014Q3 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodTax
0 USD
CY2013Q3 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodTax
-6000000 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodTax
-55000000 USD
CY2014Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax
0 USD
CY2013Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax
-13000000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax
-15000000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax
6000000 USD
CY2014Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesTax
0 USD
CY2013Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesTax
-5000000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesTax
-6000000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesTax
2000000 USD
CY2014Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesNetOfTax
0 USD
CY2013Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesNetOfTax
-8000000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesNetOfTax
-9000000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesNetOfTax
4000000 USD
CY2014Q3 mbi Other Comprehensive Income Unrealized Holding Gain Loss Arising During Period On Securities With Other Than Temporary Impairment Losses Before Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossArisingDuringPeriodOnSecuritiesWithOtherThanTemporaryImpairmentLossesBeforeTax
-79000000 USD
CY2013Q3 mbi Other Comprehensive Income Unrealized Holding Gain Loss Arising During Period On Securities With Other Than Temporary Impairment Losses Before Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossArisingDuringPeriodOnSecuritiesWithOtherThanTemporaryImpairmentLossesBeforeTax
8000000 USD
mbi Other Comprehensive Income Unrealized Holding Gain Loss Arising During Period On Securities With Other Than Temporary Impairment Losses Before Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossArisingDuringPeriodOnSecuritiesWithOtherThanTemporaryImpairmentLossesBeforeTax
-80000000 USD
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<div><p style='text-align:left;margin-top:0pt;margin-bottom:9pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;font-style:italic;margin-left:0pt;' >Recent </font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;font-style:italic;' >Accounting Developments</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;font-style:italic;' > </font></p><p style='text-align:left;margin-top:0pt;margin-bottom:9pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:0pt;' >Presentation of Financia</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >l Statements (Topic 205) and Property, P</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >lant, and Equipment (Topic 360)</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' > &#8212;</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity</font></p><p style='text-align:left;margin-top:0pt;margin-bottom:9pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >In April of 2014, the FASB issued ASU 2014-08, &#8220;Presentation of Financial Statements (Topic 2</font><font style='font-family:Times New Roman;font-size:10pt;' >05) and Property, Plant, and Equipment (Topic 360)-Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.&#8221; ASU 2014-08 changes the criteria for determining whether a disposal of a component or group of components of an e</font><font style='font-family:Times New Roman;font-size:10pt;' >ntity qualifies for discontinued operations presentation and requires new disclosures. ASU 2014-08 amends the definition of discontinued operation to a disposal of components of an entity that represent strategic shifts that have, or will have, a major eff</font><font style='font-family:Times New Roman;font-size:10pt;' >ect on an entity&#8217;s operations and financial results. ASU 2014-08 is effective for interim and annual periods beginning January 1, 2015 with early adoption permitted. The adoption of ASU 2014-08 is not expected to materially impact the Company&#8217;s consolidat</font><font style='font-family:Times New Roman;font-size:10pt;' >ed financial statements.</font></p><p style='text-align:left;margin-top:0pt;margin-bottom:9pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:0pt;' >Revenue from Contracts with Customers (Topic 606) (ASU 2014-09)</font></p><p style='text-align:left;margin-top:0pt;margin-bottom:9pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >In May of 2014, the FASB issued ASU 2014-09, &#8220;Revenue from Contracts with Customers (Topic 606).&#8221; ASU 2014-09 amends the accounting guidance for recognizing revenue </font><font style='font-family:Times New Roman;font-size:10pt;' >for the transfer of goods or services from contracts with customers unless those contracts are within the scope of other accounting standards. ASU 2014-09 is effective for interim and annual periods beginning January 1, 2017, and is applied on a retrospect</font><font style='font-family:Times New Roman;font-size:10pt;' >ive or modified retrospective basis. The Company is evaluating the impact of adopting ASU 2014-09.</font></p><p style='text-align:left;margin-top:0pt;margin-bottom:9pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:0pt;' >Tra</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >nsfers and Servicing (Topic 860</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >)</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' > &#8212; </font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (ASU 2014-11)</font></p><p style='text-align:left;margin-top:0pt;margin-bottom:9pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >In June of 2014, the FASB iss</font><font style='font-family:Times New Roman;font-size:10pt;' >ued ASU 2014-11, &#8220;Transfers and Servicing (Topic 860)-Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.&#8221; The repurchase agreements and similar transactions guidance is amended by ASU 2014-11 to change the accounting for i.) repur</font><font style='font-family:Times New Roman;font-size:10pt;' >chase-to-maturity transactions to secured borrowing accounting and ii.) linked repurchase financing transactions to secured borrowing accounting. ASU 2014-11 amends disclosure requirements for transfers accounted for as sales, and for repurchase transactio</font><font style='font-family:Times New Roman;font-size:10pt;' >ns accounted for as secured borrowings. ASU 2014-11 is effective for interim and annual periods beginning January 1, 2015, and is applied on a prospective basis. The adoption of ASU 2014-11 is not expected to materially impact the Company&#8217;s consolidated fi</font><font style='font-family:Times New Roman;font-size:10pt;' >nancial statements.</font></p><p style='text-align:left;margin-top:0pt;margin-bottom:9pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:0pt;' >Compensation-Stock Compensation (Topic 718</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >)</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' > &#8212;</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' > </font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (A Consensus of the FASB Emerging Issues</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' > Task Force) (ASU 2014-12)</font></p><p style='text-align:left;margin-top:0pt;margin-bottom:9pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >In June of 2014, the FASB issued ASU 2014-12, &#8220;Compensation-Stock Compensation (Topic 718)-Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Ser</font><font style='font-family:Times New Roman;font-size:10pt;' >vice Period.&#8221; ASU 2014-12 requires that a performance target that affects vesting of share-based payment awards and that could be achieved after an employee&#8217;s requisite service period be accounted for as a performance condition. ASU 2014-12 is effective fo</font><font style='font-family:Times New Roman;font-size:10pt;' >r interim and annual periods beginning January 1, 2016 with early adoption permitted, and is applied on a prospective basis or retrospective basis. The adoption of ASU 2014-12 is not expected to materially impact the Company&#8217;s consolidated financial statem</font><font style='font-family:Times New Roman;font-size:10pt;' >ents.</font></p><p style='text-align:left;margin-top:0pt;margin-bottom:4.5pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:0pt;' >Consolidation (Topic 810)</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' > </font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >&#8212;</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (ASU 2014-</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >13</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >) </font></p><p style='text-align:left;margin-top:0pt;margin-bottom:9pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >In August of 2014, the FASB issued ASU 2014-13, &#8220;Consolidation (Topic 810)-Measuring the Financia</font><font style='font-family:Times New Roman;font-size:10pt;' >l Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity.&#8221;</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >ASU 2014-13 applies to a consolidated collateralized financing entity defined as a consolidated variable interest entity (&#8220;VIE&#8221;) that holds financial assets and issu</font><font style='font-family:Times New Roman;font-size:10pt;' >es beneficial interests in those financial assets that are classified as financial liabilities. </font><font style='font-family:Times New Roman;font-size:10pt;' >The Company</font><font style='font-family:Times New Roman;font-size:10pt;' > may elect to measure the financial assets and the financial liabilities of a consolidated collateralized financing entity using a measurement altern</font><font style='font-family:Times New Roman;font-size:10pt;' >ative provided in ASU 2014-</font><font style='font-family:Times New Roman;font-size:10pt;' >13</font><font style='font-family:Times New Roman;font-size:10pt;' >. The measurement alternative requires both the financial assets and the financial liabilities of the consolidated collateralized financing entity to be measured using the more observable of the fair value of the financial asse</font><font style='font-family:Times New Roman;font-size:10pt;' >ts and the fair value of the financial liabilities with the changes in fair value recognized to earnings. Upon adoption, a reporting entity may apply the measurement alternative to existing consolidated collateralized financing entities. ASU 2014-</font><font style='font-family:Times New Roman;font-size:10pt;' >13</font><font style='font-family:Times New Roman;font-size:10pt;' > is eff</font><font style='font-family:Times New Roman;font-size:10pt;' >ective for interim and annual periods beginning January 1, 2016 with early adoption permitted. The adoption of ASU 2014-</font><font style='font-family:Times New Roman;font-size:10pt;' >13</font><font style='font-family:Times New Roman;font-size:10pt;' > is not expected to materially impact the Company&#8217;s consolidated financial statements.</font></p><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:0pt;' >Presentation of Financial Statements</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >&#8212;</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >Going Conc</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >ern (Subtopic 205-40): Disclosure of Uncertainties about an Entity&#8217;s Ability to Continue as a Going Concern</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' > </font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >(ASU 2014-</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >15</font><font style='font-family:Times New Roman;font-size:10pt;font-style:italic;' >)</font></p><p style='text-align:left;margin-top:4.5pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >In August of 2014, the FASB issued ASU 2014-15, &#8220;Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of U</font><font style='font-family:Times New Roman;font-size:10pt;' >ncertainties about an Entity&#8217;s Ability to Continue as a Going Concern.&#8221; ASU 2014-15 requires management to evaluate whether there are conditions or events that raise substantial doubt about the entity&#8217;s ability to continue as a going concern, and to provid</font><font style='font-family:Times New Roman;font-size:10pt;' >e certain disclosures when it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. ASU 2014-15 is effective for the annual period ended December 31, 2</font><font style='font-family:Times New Roman;font-size:10pt;' >016 and for annual periods and interim periods thereafter with early adoption permitted. </font><font style='font-family:Times New Roman;font-size:10pt;' >The adoption of ASU 2014-15 is not expected to materially impact the Company&#8217;s consolidated financial statements.</font></p><p style='text-align:left;line-height:12pt;' ></p></div>
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