XML 23 R18.htm IDEA: XBRL DOCUMENT ﻿
v2.3.0.11

Segment Information | 6 Months Ended
--- | ---
Jun. 30, 2011
Segment Information |
Segment Information | (10) Segment Information Ambac has two reportable segments, as follows: (1) Financial Guarantee, which provided financial guarantees (including credit derivatives) for public finance, structured finance and other obligations; and (2) Financial Services, which provided investment agreements, funding conduits, interest rate and currency swaps, principally to clients of the financial guarantee business, which includes municipalities and other public entities, health care organizations, investor-owned utilities and asset-backed issuers. Ambac's reportable segments were strategic business units that offer different products and services. They are managed separately because each business required different marketing strategies, personnel skill sets and technology. Ambac Assurance guarantees the swap and investment agreement obligations of its Financial Services affiliates. Additionally, Ambac Assurance provides loans to the Financial Services businesses. Inter-segment revenues include the premiums and investment income earned under those agreements. Such premiums are determined as if they were premiums paid by third parties, that is, at current market prices. Information provided below for "Corporate and Other" relates to (i) investment advisory, consulting and research services to the structured credit markets from RangeMark in 2010, and (ii) corporate activities, including interest income on the investment portfolio (2011 and 2010) and activities related to debentures in 2010. Corporate and other revenue from unaffiliated customers consists primarily of income from investments. The following table is a summary of financial information by reportable segment as of and for the three and six months ended June 30, 2011 and 2010:
Three months ended June 30, |  | Financial Guarantee |  |  | Financial Services |  |  | Corporate and Other |  |  | Inter- segment Eliminations |  |  | Consolidated |
2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers |  | $ | 203,089 |  |  | $ | (54,966 | ) |  | $ | 72 |  |  | $ | — |  |  | $ | 148,195 |
Inter-segment |  |  | 1,407 |  |  |  | (1,336 | ) |  |  | — |  |  |  | (71 | ) |  |  | — |
Total revenues |  | $ | 204,496 |  |  | $ | (56,302 | ) |  | $ | 72 |  |  | $ | (71 | ) |  | $ | 148,195 |
Income before income taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers |  | $ | (34,791 | ) |  | $ | (59,697 | ) |  | $ | (918 | ) |  | $ | — |  |  | $ | (95,406 | )
Inter-segment |  |  | 341 |  |  |  | (328 | ) |  |  | 157 |  |  |  | (170 | ) |  |  | — |
Total income before income taxes |  | $ | (34,450 | ) |  | $ | (60,025 | ) |  | $ | (761 | ) |  | $ | (170 | ) |  | $ | (95,406 | )
Total assets |  | $ | 26,588,040 |  |  | $ | 1,291,736 |  |  | $ | 60,653 |  |  | $ | — |  |  | $ | 27,940,429 |
2010: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers |  | $ | 380,219 |  |  | $ | (10,899 | ) |  | $ | 11,850 |  |  | $ | — |  |  | $ | 381,170 | )
Inter-segment |  |  | (217,728 | ) |  |  | 217,815 |  |  |  | 2,808 |  |  |  | (2,895 | ) |  |  | — |
Total revenues |  | $ | 162,491 |  |  | $ | 206,916 |  |  | $ | 14,658 |  |  | $ | (2,895 | ) |  | $ | 381,170 |
Income before income taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers |  | $ | (8,924 | ) |  | $ | (18,380 | ) |  | $ | (30,392 | ) |  | $ | — |  |  | $ | (57,696 | )
Inter-segment |  |  | (223,122 | ) |  |  | 219,365 |  |  |  | 3,757 |  |  |  | — |  |  |  | — |
Total income before income taxes |  | $ | (232,046 | ) |  | $ | 200,985 |  |  | $ | (26,635 | ) |  | $ | — |  |  | $ | (57,696 | )
Total assets |  | $ | 28,198,706 |  |  | $ | 1,755,353 |  |  | $ | 101,726 |  |  | $ | — |  |  | $ | 30,055,785 |
Six months ended June 30, |  | Financial Guarantee |  |  | Financial Services |  |  | Corporate and Other |  |  | Inter- segment Eliminations |  |  | Consolidated |
2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers |  | $ | 378,100 |  |  | $ | (26,771 | ) |  | $ | 149 |  |  | $ | — |  |  | $ | 351,478 |
Inter-segment |  |  | 24,086 |  |  |  | (23,941 | ) |  |  | — |  |  |  | (145 | ) |  |  | — |
Total revenues |  | $ | 402,186 |  |  | $ | (50,712 | ) |  | $ | 149 |  |  | $ | (145 | ) |  | $ | 351,478 |
Income before income taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers |  | $ | (849,872 | ) |  | $ | (36,307 | ) |  | $ | (1,318 | ) |  | $ | — |  |  | $ | (887,497 | )
Inter-segment |  |  | 21,631 |  |  |  | (22,154 | ) |  |  | 693 |  |  |  | (170 | ) |  |  | — |
Total income before income taxes |  | $ | (828,241 | ) |  | $ | (58,461 | ) |  | $ | (625 | ) |  | $ | (170 | ) |  | $ | (887,497 | )
Total assets |  | $ | 26,588,040 |  |  | $ | 1,291,736 |  |  | $ | 60,653 |  |  | $ | — |  |  | $ | 27,940,429 |
2010: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers |  | $ | (68,936 | ) |  | $ | (61,187 | ) |  | $ | 12,154 |  |  | $ | — |  |  | $ | (117,969 | )
Inter-segment |  |  | (186,096 | ) |  |  | 186,287 |  |  |  | 2,808 |  |  |  | (2,999 | ) |  |  | — |
Total revenues |  | $ | (255,032 | ) |  | $ | 125,100 |  |  | $ | 14,962 |  |  | $ | (2,999 | ) |  | $ | (117,969 | )
Income before income taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers |  | $ | (597,727 | ) |  | $ | (77,729 | ) |  | $ | (72,195 | ) |  | $ | — |  |  | $ | (747,651 | )
Inter-segment |  |  | (193,617 | ) |  |  | 189,165 |  |  |  | 4,452 |  |  |  | — |  |  |  | — |
Total income before income taxes |  | $ | (791,344 | ) |  | $ | 111,436 |  |  | $ | (67,743 | ) |  | $ | — |  |  | $ | (747,651 | )
Total assets |  | $ | 28,198,706 |  |  | $ | 1,755,353 |  |  | $ | 101,726 |  |  | $ | — |  |  | $ | 30,055,785 |
The following table summarizes gross premiums written, net premiums earned and the net change in fair value of credit derivatives included in the Financial Guarantee segment by location of risk for the three and six months ended June 30, 2011 and 2010:
|  | Three Months Ended June 30, 2011 |  |  | Three Months Ended June 30, 2010 |
|  | Gross Premiums Written |  |  | Net Premiums Earned |  |  | Net Change in Fair Value of Credit Derivatives |  |  | Gross Premiums Written |  |  | Net Premiums Earned |  |  | Net Change in Fair Value of Credit Derivatives |
United States |  | $ | (210,913 | ) |  | $ | 78,648 |  |  | $ | 17,717 |  |  | $ | 1,167 |  |  | $ | 117,961 |  |  | $ | 145,145 |
United Kingdom |  |  | 18,151 |  |  |  | 11,853 |  |  |  | 1,535 |  |  |  | (20,301 | ) |  |  | 20,864 |  |  |  | 9,895 |
Other international |  |  | (15,312 | ) |  |  | 8,770 |  |  |  | 5,035 |  |  |  | (22,601 | ) |  |  | 28,180 |  |  |  | 47,141 |
Total |  | $ | (208,074 | ) |  | $ | 99,271 |  |  | $ | 24,287 |  |  | $ | (41,735 | ) |  | $ | 167,005 |  |  | $ | 202,181 |
|  | Six Months Ended June 30, 2011 |  |  | Six Months Ended June 30, 2010 |
|  | Gross Premiums Written |  |  | Net Premiums Earned |  |  | Net Change in Fair Value of Credit Derivatives |  |  | Gross Premiums Written |  |  | Net Premiums Earned |  |  | Net Change in Fair Value of Credit Derivatives |
United States |  | $ | (355,179 | ) |  | $ | 150,129 |  |  | $ | 10,518 |  |  | $ | (113,544 | ) |  | $ | 214,237 |  |  | $ | (79,895 | )
United Kingdom |  |  | 10,883 |  |  |  | 22,786 |  |  |  | 853 |  |  |  | (29,090 | ) |  |  | 33,168 |  |  |  | 14,752 |
Other international |  |  | (23,989 | ) |  |  | 18,155 |  |  |  | 4,013 |  |  |  | (48,501 | ) |  |  | 44,831 |  |  |  | 100,185 |
Total |  | $ | (368,285 | ) |  | $ | 191,070 |  |  | $ | 15,384 |  |  | $ | (191,135 | ) |  | $ | 292,236 |  |  | $ | 35,042 |

X
- Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration