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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Major Jurisdictions

The following are the major jurisdictions in which Ambac and its subsidiaries operate and the earliest tax years subject to examination:

Jurisdiction	Tax Year
United States	2010
New York State	2013
New York City	2013
United Kingdom	2014
Italy	2013

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 March 31, 2017 and December 31, 2016 are presented below:

	March 31, 2017				December 31, 2016
Deferred tax liabilities:
Insurance intangible	$	325,906			$	336,728
Variable interest entities	46,022				46,343
Investments	52,647				38,656
Unearned premiums and credit fees	66,739				68,682
Unremitted foreign earnings	57,565				30,699
Other	4,413				4,276
Total deferred tax liabilities	553,292				525,384
Deferred tax assets:
Net operating loss and capital carryforward	1,420,188				1,409,565
Loss reserves	271,552				224,553
AMT Credits	31,533				31,532
Other	16,267				16,726
Sub total deferred tax assets	1,739,540				1,682,376
Valuation allowance	1,187,994				1,158,712
Total deferred tax assets	551,546				523,664
Net deferred tax (liability)	$	(1,746	)		$	(1,720	)

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

U.S. and foreign components of pre-tax income were as follows:

	Three Months Ended March 31,
	2017				2016
U.S.	$	(191,873	)		$	27,500
Foreign	86,012				(14,646		)
Total	$	(105,860	)		$	12,854

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for income taxes were as follows:

	Three Months Ended March 31,
	2017				2016
Current taxes
U. S. federal	$	—			$	—
U.S. state and local	320				7
Foreign	19,261				3,432
Current taxes	19,581				3,439
Deferred taxes
Deferred taxes	—				—
Provision for income taxes	$	19,581			$	3,439

Schedule of Net Operating Loss And Tax Credit Carryovers

Pursuant to the Amended TSA (as defined in Note 1. Background and Business Description to the Consolidated Financial Statements included in Part II, Item 8 in the Company's Annual Report on Form 10-K for the year ended December 31, 2016), to the extent Ambac Assurance generates taxable income after September 30, 2011, which is offset with "Allocated NOLs" of $3,650,000, 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			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%

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Schedule of Net Operating Loss And Tax Credit Carryovers [Table Text Block]

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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.

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-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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-Section S99
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Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded.

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