Note 13 - Income Taxes Level 3 (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Components of Income Tax Expense [Table Text Block]

The components of our consolidated income tax benefit from continuing operations are as follows:



	Year Ended December 31,
(In thousands)	2014			2013			2012
Current (benefit) provision	$	(26,575	)	$	352		$	(56,140	)
Deferred (benefit) provision	(825,843		)	(31,847		)	7,817
Total income tax benefit	$	(852,418	)	$	(31,495	)	$	(48,323	)

Reconciliation of Taxes at Statutory Rate to Provision (Benefit) for Income Taxes [Table Text Block]

The reconciliation of taxes computed at the statutory tax rate of 35% to the benefit for income taxes on continuing operations is as follows:



	Year Ended December 31,
(In thousands)	2014			2013			2012
Provision (benefit) for income taxes computed at the statutory tax rate	$	142,504		$	(60,671	)	$	(95,350	)
Change in tax resulting from:
Tax-exempt municipal bond interest and dividends received deduction (net of proration)	(1,286		)	(1,494		)	(1,818		)
Foreign tax expense (benefit)	270			(1		)	54
State tax (benefit) expense	(693		)	1,460			4,002
Unrecognized tax expense (benefit)	407			1,696			(2,906		)
Deferred inventory adjustment related to fair value of derivatives and other financial instruments	—			—			(23,217		)
Valuation allowance	(995,008		)	24,546			71,072
Other, net	1,388			2,969			(160		)
Benefit for income taxes	$	(852,418	)	$	(31,495	)	$	(48,323	)

Schedule of Components of Deferred Tax Assets and Liabilities [Table Text Block]

The significant components of our net deferred tax assets and liabilities from continuing operations are summarized as follows:



	December 31,
(In thousands)	2014		2013
DTAs:
Accrued expenses	$	60,858	$	74,968
Unearned premiums	82,800		50,779
PDR	780		625
NOL	475,095		628,573
Differences in fair value of derivative and other financial instruments	—		31,812
Rescission premium	3,151		5,964
State and Local NOL Carryforwards	34,851		33,095
Foreign tax credit carryforward	6,015		6,015
Depreciation	70		6,783
Partnership investments	74,179		74,569
Loss reserves	6,362		13,586
Outside basis difference of investment in subsidiary	14,084		—
Foreign currency	97		—
Alternative minimum tax credit carryforward	2,286		—
Other	37,878		31,547
Total DTAs	798,506		958,316
DTLs:
Deferred policy acquisition costs	4,203		10,410
Convertible and other long-term debt	38,750		47,579
Differences in fair value of derivative and other financial instruments	352		—
Net unrealized gain on investments	26,145		18,163
Foreign currency	—		18
Other	10,981		5,609
Total DTLs	80,431		81,779
Less: Valuation allowance	17,874		858,635
Net DTA	$	700,201	$	17,902

Summary of Income Tax Contingencies [Table Text Block]

A reconciliation of the beginning and ending unrecognized tax benefits is as follows:



	Year Ended December 31,
(In thousands)	2014			2013
Balance at beginning of period	$	119,236		$	114,013
Tax positions related to the current year:
Increases	2,352			2,363
Tax positions related to prior years:
Increases	24,361			29,962
Decreases	(1,546		)	(3,615		)
Lapses of applicable statute of limitation	(24,180		)	(23,487		)
Balance at end of period	$	120,223		$	119,236

Summary of Income Tax Examinations [Table Text Block]

The following calendar tax years, listed by major jurisdiction, remain subject to examination:



U.S. Federal Corporation Income Tax	2000 - 2007(1), 2011 - 2013
Significant State and Local Jurisdictions (2)	1999 - 2013

_________________________


(1)	We petitioned the U.S. Tax Court to litigate the IRS Notices of Deficiency resulting from the examination of our 2000 through 2007 consolidated federal income tax returns. This litigation relates to the recognition of certain tax benefits associated with our investment in a portfolio of non-economic REMIC residual interests.


(2)	Arizona, California, Florida, Georgia, New York, Ohio, Pennsylvania and New York City.

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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