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Long-term Debt | 6 Months Ended
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Jun. 30, 2012
Long-term Debt [Abstract] |
Long-term Debt | 10. Long-term Debt The carrying value of long-term debt was as follows:
|  | June 30, 2012 |  |  | December 31, 2011 |
Ambac Assurance Corporation: |  |  |  |  |  |  |  |
5.1% surplus notes, general account, due 2020 |  | $ | 133,820 |  |  | $ | 213,790 |
5.1% surplus notes, segregated account, due 2020 |  |  | 6,233 |  |  |  | 6,020 |
5.1% junior surplus notes, segregated account, due 2020 |  |  | 3,983 |  |  |  | 3,791 |
Ambac Assurance long-term debt |  | $ | 144,036 |  |  | $ | 223,601 |
Variable Interest Entities: |  |  |  |  |  |  |  |
Total long-term debt |  | $ | 14,376,872 |  |  | $ | 14,288,540 |
Ambac Assurance entered into call option agreements to repurchase, at significant discounts to par, general account surplus notes with an aggregate par amount of $939,179. The subject surplus notes were issued in connection with the settlement of credit derivative liabilities in 2010 and were recorded at their fair value at the date of issuance. Since issuance, Ambac has accreted the discount into earnings using the effective interest method. Certain of these call options were free-standing derivatives for accounting purposes and were carried at fair value as assets on the Consolidated Balance Sheets. In June 2012, Ambac Assurance exercised certain of these options and repurchased surplus notes with total par value of $789,179 for an aggregate cash payment of $188,446 pursuant to such call option agreements. The carrying value of extinguished surplus notes and accrued interest less the fair value of the free-standing derivatives were below the call option exercise prices and, accordingly, for the three and six months ended June 30, 2012, Ambac recognized a realized loss of $177,745. The remaining options to acquire surplus notes have expired. Refer to Note 1 for more information about the acquisition of surplus notes. Surplus note interest payments require the approval of OCI. OCI disapproved of the requests of Ambac Assurance and the Rehabilitator of the Segregated Account, acting for and on behalf of the Segregated Account, to pay interest on all outstanding Surplus Notes issued by Ambac and the Segregated Account on the first and second scheduled interest payment dates of June 7, 2011 and June 7, 2012, respectively.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 + Details
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