Note 13 - Income Taxes Level 3 (Tables)

12 Months Ended

Dec. 31, 2013

Components of Income Tax Provision [Abstract]

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

The components of our consolidated income tax (benefit) provision are as follows:

	Year Ended December 31,
(In thousands)	2013			2012		2011
Current	$	21,750		$	1,271	$	59,604
Deferred	(31,820		)	6,000		6,758
Total income tax (benefit) provision	$	(10,070	)	$	7,271	$	66,362

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% for 2013, 2012 and 2011 to the provision for income taxes is as follows:

	Year Ended December 31,
(In thousands)	2013			2012			2011
(Benefit) provision for income taxes computed at the statutory tax rate	$	(72,469	)	$	(155,469	)	$	128,979
Change in tax resulting from:
Tax-exempt municipal bond interest and dividends received deduction (net of proration)	(2,390		)	(3,101		)	(5,237		)
Foreign tax (benefit) expense	(1		)	146			(13,496		)
State tax expense (benefit)	1,468			4,003			(6,224		)
Unrecognized tax expense (benefit)	1,696			(2,906		)	17,860
Deferred inventory adjustment related to fair value of derivatives and other financial instruments	—			(23,217		)	—
Valuation allowance	59,783			188,290			(50,582		)
Other, net	1,843			(475		)	(4,938		)
(Benefit) provision for income taxes	$	(10,070	)	$	7,271		$	66,362

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

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

	December 31,
(In thousands)	2013		2012
Deferred tax assets:
Accrued expenses	$	79,460	$	51,049
Unearned premiums	54,993		36,060
PDR	625		1,290
Net operating loss (“NOL”)	642,333		666,633
Differences in fair value of derivative and other financial instruments	130,773		54,335
Rescission premium	5,964		16,797
State NOL carryforward	33,095		31,744
Foreign tax credit carryforward	26,292		26,292
Depreciation	6,366		5,478
Partnership investments	75,100		65,704
Loss reserves	28,257		39,540
Residual interest in LPV	22,957		24,084
Other	40,657		53,319
Total deferred tax assets	1,146,872		1,072,325
Deferred tax liabilities:
Deferred policy acquisition costs	23,435		30,882
Convertible and other long-term debt	47,579		28,449
Net unrealized gain on investments	20,030		8,783
Foreign currency	18		18
Other	15,628		14,536
Total deferred tax liabilities	106,690		82,668
Valuation allowance	1,022,280		989,657
Net DTA	$	17,902	$	—

Effect of Unrecognized Tax Benefits on Consolidated Balance Sheets and Results of Operations [Table Text Block]

The effect of unrecognized tax benefits on our consolidated balance sheets and results of operations is as follows:

(In thousands)	December 31, 2012		Increase		December 31, 2013
Unrecognized tax benefits	$	114,013	$	5,223	$	119,236
Unrecognized tax benefits that, if recognized, would affect the effective tax rate	$	58,994	$	1,696	$	60,690
Interest and penalties accrued	$	53,002	$	5,348	$	58,350
Interest and penalties charged to income tax benefit					$	5,348

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)	2013			2012
Balance at beginning of period	$	114,013		$	125,757
Tax positions related to the current year:
Increases	2,363			1,209
Decreases	—			(1,624		)
Tax positions related to prior years:
Increases	29,962			27,302
Decreases	(3,615		)	(4,243		)
Lapses of applicable statute of limitation	(23,487		)	(34,388		)
Balance at end of period	$	119,236		$	114,013

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), 2010 - 2012
Significant State and Local Jurisdictions (2)	1999 - 2012

_________________________

(1) We are currently contesting proposed adjustments resulting from the examination by the IRS of our 2000 through 2007 consolidated federal income tax returns. As part of this process, we have agreed to extend all relevant statute of limitations for the assessment of tax to June 30, 2014. All such statute of limitation extensions have limited the scope of the examinations to the recognition of certain tax benefits that relate to our investment in a portfolio of non-economic REMIC residual interests.

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