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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Major Jurisdictions | The following are the major jurisdictions in which Ambac and its affiliates operate and the earliest tax years subject to examination:
Jurisdiction | Tax Year
United States | 2010
New York State | 2011
New York City | 2011
United Kingdom | 2011
Italy | 2010
Significant Portions of Deferred Tax Liabilities and Deferred Tax Assets | The tax effects of temporary differences that give rise to significant portions of the deferred tax liabilities and deferred tax assets at December 31, 2015 and 2014 are presented below:
December 31 | 2015 |  | 2014
Deferred tax liabilities: |  |  |
Insurance intangible | $ | 424,239 |  |  | $ | 493,822 |
Variable interest entities | 10,053 |  |  | 14,149 |
Investments | 66,278 |  |  | 136,017 |
Unearned premiums and credit fees | 98,945 |  |  | 104,589 |
Other | 34,025 |  |  | 33,835 |
Total deferred tax liabilities | 633,540 |  |  | 782,412 |
Deferred tax assets: |  |  |
Net operating loss and capital carryforward | 1,504,569 |  |  | 1,890,551 |
Loss reserves | 122,635 |  |  | 185,881 |
Compensation | 2,839 |  |  | 2,004 |
AMT Credits | 27,252 |  |  | 10,359 |
Other | 9,913 |  |  | 9,539 |
Sub total deferred tax assets | 1,667,208 |  |  | 2,098,334 |
Valuation allowance | 1,035,873 |  |  | 1,318,001 |
Total deferred tax assets | 631,335 |  |  | 780,333 |
Net deferred tax asset (liability) | $ | (2,205 | ) |  | $ | (2,079 | )
Schedule of Components of Income Tax Expense (Benefit) | Ambac’s provision for income taxes charged to income from continuing operations is comprised of the following:
| Successor Ambac |  |  | Predecessor Ambac
|  |  |  |  | Period from May 1 |  |  | Period from Jan 1
| Year Ended December 31, |  | through |  |  | through
| 2015 |  | 2014 |  | December 31, 2013 |  |  | April 30, 2013
Current taxes | $ | 17,077 |  |  | $ | 9,463 |  |  | $ | 6,984 |  |  |  | $ | 761 |
Deferred taxes | 287 |  |  | 94 |  |  | 530 |  |  |  | (6 | )
Total | $ | 17,364 |  |  | $ | 9,557 |  |  | $ | 7,514 |  |  |  | $ | 755 |
Schedule Of Income Taxes Charged Credited Directly To Equity | The total effect of income taxes on net income and stockholders’ equity for the years ended December 31, 2015, 2014 and 2013 is as follows:
| Successor Ambac |  |  | Predecessor Ambac
|  |  |  |  | Period from May 1 |  |  | Period from Jan 1
| Year Ended December 31, |  | through |  |  | through
| 2015 |  | 2014 |  | December 31, 2013 |  |  | April 30, 2013
Total income taxes charged to net income | $ | 17,364 |  |  | $ | 9,557 |  |  | $ | 7,514 |  |  |  | $ | 755 |
Income taxes charged (credited) to stockholders’ equity: |  |  |  |  |  |  |  |
Unrealized gains (losses) on investment securities | (55,906 | ) |  | 88,411 |  |  | (14,669 | ) |  |  | (227,945 | )
Unrealized gains (losses) on foreign currency translations | (15,628 | ) |  | (15,108 | ) |  | 14,953 |  |  |  | 7,010 |
Change in retirement benefits | (240 | ) |  | (285 | ) |  | 3,797 |  |  |  | 1,594 |
Valuation allowance to equity | 71,774 |  |  | (73,018 | ) |  | (4,081 | ) |  |  | 219,341 |
Total effect of income taxes | $ | 17,364 |  |  | $ | 9,557 |  |  | $ | 7,514 |  |  |  | $ | 755 |
Schedule of Effective Income Tax Rate Reconciliation | The tax provisions in the accompanying Consolidated Statements of Total Comprehensive Loss reflect effective tax rates differing from prevailing Federal corporate income tax rates. The following is a reconciliation of these differences:
| Successor Ambac |  |  | Predecessor Ambac
|  |  |  |  |  |  | Period from May 1 |  |  | Period from Jan 1
| Year Ended December 31, |  | through |  |  | through
| 2015 |  | 2014 |  | December 31, 2013 |  |  | April 30, 2013
| $ |  | % |  | $ |  | % |  | $ |  | % |  |  | $ |  | %
Tax on income from continuing operations at statutory rate | 178,521 |  |  | 35.0 | % |  | 172,639 |  |  | 35.0 | % |  | 179,311 |  |  | 35.0 | % |  |  | 1,171,812 |  |  | 35.0 | %
Changes in expected tax resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tax-exempt interest | (1,454 | ) |  | (0.3 | )% |  | (6,811 | ) |  | (1.4 | )% |  | (11,988 | ) |  | (2.3 | )% |  |  | (4,996 | ) |  | (0.1 | )%
Goodwill impairment | 180,079 |  |  | 35.3 | % |  | — |  |  | — | % |  | — |  |  | — | % |  |  | — |  |  | — | %
Foreign taxes | 288 |  |  | 0.1 | % |  | 3,472 |  |  | 0.7 | % |  | — |  |  | — | % |  |  | — |  |  | — | %
Valuation allowance | (340,133 | ) |  | (66.7 | )% |  | (159,661 | ) |  | (32.4 | )% |  | (160,064 | ) |  | (31.2 | )% |  |  | (1,110,230 | ) |  | (33.2 | )%
Reorganization income | — |  |  | — | % |  | — |  |  | — | % |  | — |  |  | — | % |  |  | (712,581 | ) |  | (21.3 | )%
Tax bankruptcy adjustments | — |  |  | — | % |  | — |  |  | — | % |  | — |  |  | — | % |  |  | 285,734 |  |  | 8.5 | %
IRS Settlement | — |  |  | — | % |  | — |  |  | — | % |  | — |  |  | — | % |  |  | 370,996 |  |  | 11.1 | %
Other, net | 63 |  |  | — | % |  | (82 | ) |  | — | % |  | 255 |  |  | — | % |  |  | 20 |  |  | — | %
Tax expense on income from continuing operations | 17,364 |  |  | 3.4 | % |  | 9,557 |  |  | 1.9 | % |  | 7,514 |  |  | 1.5 | % |  |  | 755 |  |  | — | %
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits for 2015 and 2014 is as follows:
| Successor Ambac |  |  | Predecessor Ambac
|  |  |  |  | Period from May 1 |  |  | Period from Jan 1
| Year Ended December 31, |  | through |  |  | through
| 2015 |  | 2014 |  | December 31, 2013 |  |  | April 30, 2013
Balance, beginning of period | — |  |  | — |  |  | — |  |  |  | 96,900 |
Increases related to prior year tax positions | — |  |  | — |  |  | — |  |  |  | — |
Decreases related to prior year tax positions(1) | — |  |  | — |  |  | — |  |  |  | (96,900 | )
Balance, end of period | — |  |  | — |  |  | — |  |  |  | — |
(1) | Amount paid in connection with IRS settlement as noted above.
Schedule of Net Operating Loss And Tax Credit Carryovers | Pursuant to the Amended TSA, to the extent Ambac Assurance generates taxable income after September 30, 2011, which is offset with NOLs (or the proportionate amount of AMT NOL (as defined below)), it is obligated to make payments (“Tolling Payments”), subject to certain credits, to Ambac in accordance with the following NOL usage table, where the “Applicable Percentage” is applied to the aggregate amount of federal income tax liability that would have been paid if the “Allocated NOLs” were not available: NOL Usage Table
NOL Usage Tier | Allocated NOLs(1) |  | Applicable Percentage
A | The first | $479,000 |  | 15%
B | The next | $1,057,000 | after Tier A | 40%
C | The next | $1,057,000 | after Tier B | 10%
D | The next | $1,057,000 | after Tier C | 15%
(1) | Bankruptcy-related credits offset the first $5 million payment due under each of the NOL usage Tiers A, B and C. Pursuant to the Internal Revenue Service closing agreement the United States Department of Treasury receives 12.5% of Tier C and 17.5% of Tier D Tolling Payments.

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
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