Note 15 - Discontinued Operations

6 Months Ended

Jun. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On April 1, 2015, Radian Guaranty completed the sale of 100% of the issued and outstanding shares of Radian Asset Assurance for a purchase price of approximately $810 million, pursuant to the Radian Asset Assurance Stock Purchase Agreement.

Prior to this, we had determined that Radian Asset Assurance met the criteria for held for sale and discontinued operations accounting at December 31, 2014. As a result, we recognized a pretax impairment charge of $467.5 million for the year ended December 31, 2014 and an additional pretax impairment charge of $14.3 million for the six months ended June 30, 2015. We recorded net income on discontinued operations of $5.4 million related to this sale in the first six months of 2015, consisting primarily of the recognition of investment gains previously deferred and recorded in AOCI and recognized as a result of the completion of the sale of Radian Asset Assurance to Assured on April 1, 2015, and adjustments to estimated transaction costs and taxes. The operating results of Radian Asset Assurance have been classified as discontinued operations for all periods presented in our condensed consolidated statements of operations. No general corporate overhead or interest expense was allocated to discontinued operations.

The table below summarizes the components of income from discontinued operations, net of tax, for the period indicated. There was no activity for discontinued operations in the three and six months ended June 30, 2016.

	Three Months Ended June 30, 2015			Six Months Ended June 30, 2015
(In thousands)
Net premiums earned	$	—		$	1,007
Net investment income	—			9,153
Net gains (losses) on investments and other financial instruments	7,818			21,486
Change in fair value of derivative instruments	—			2,625
Total revenues	7,818			34,271
Provision for losses	—			502
Policy acquisition costs	—			(191		)
Other operating expenses	—			4,107
Total expenses	—			4,418
Equity in net income (loss) of affiliates	—			(13		)
Income (loss) from operations of businesses held for sale	7,818			29,840
Income (loss) on sale	(350		)	(14,280		)
Income tax provision (benefit)	2,613			10,175
Income (loss) from discontinued operations, net of tax	$	4,855		$	5,385