Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Text Block [Abstract]

Income (loss) from operations before provision (benefit) for income taxes

	Years Ended December 31,
In millions	2019			2018			2017
Domestic	$	(357	)	$	(287	)	$	(638	)
Foreign		—			(9	)		(23	)
Income (loss) before income taxes	$	(357	)	$	(296	)	$	(661	)

Income tax expense (benefit) on income (loss) and shareholder' equity

	Years Ended December 31,
In millions	2019		2018			2017
Current taxes:
Federal	$	—	$	—		$	4
State		2		1			—
Deferred taxes:
Federal		—		(1	)		945
Foreign		—		—			(5	)
Provision (benefit) for income taxes		2		—			944
Income taxes charged (credited) to shareholders’ equity related to:
Change in unrealized gains (losses) on AFS securities		—		5			(1	)
Change in AFS securities with OTTI		—		—			1
Change in foreign currency translation		—		—			21
Total income taxes charged (credited) to shareholders’ equity		—		5			21
Total effect of income taxes	$	2	$	5		$	965

Income tax rate reconciliation from statutory to effective tax rate

	Years Ended December 31,
	2019			2018			2017
Federal income tax computed at the statutory rate		21.0	%		21.0	%		35.0	%
Increase (reduction) in taxes resulting from:
Tax Reform/Change in Tax Rate		0.0	%		0.0	%		(71.4	)%
Mark-to-market on warrants		0.0	%		(0.7	)%		1.4	%
Change in valuation allowance		(20.7	)%		(20.9	)%		(116.9	)%
State income tax, net of federal benefit		(0.4	)%		0.0	%		0.0	%
Deferred inventory adjustments		0.0	%		(1.0	)%		0.8	%
Foreign Taxes		0.0	%		0.0	%		8.2	%
Other		(0.5	)%		1.6	%		0.1	%
Effective tax rate		(0.6	)%		0.0	%		(142.8	)%

Deferred tax assets and liabilities

	As of
In millions	December 31, 2019		December 31, 2018
Deferred tax liabilities:
Unearned premium revenue	$	54	$	59
Deferred acquisition costs		13		16
Partnership basis difference		—		3
Net deferred taxes on VIEs		51		55
Other		4		—
Total gross deferred tax liabilities		122		133
Deferred tax assets:
Compensation and employee benefits		8		7
Accrued interest		185		158
Partnership basis difference		10		—
Loss and loss adjustment expense reserves		101		135
Net operating loss		590		512
Foreign tax credits		61		62
Other-than-temporary impairments		2		22
Net unrealized losses on insured derivatives		9		8
Net losses on financial instruments at fair value and foreign exchange		21		30
Net unrealized losses in accumulated other comprehensive income		—		32
Other		8		1
Total gross deferred tax assets		995		967
Valuation allowance		873		834
Net deferred tax asset	$	—	$	—