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Leases (Notes) | 12 Months Ended
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Dec. 31, 2020
Leases of Lessee Disclosure [Text Block] | 16. LEASES Ambac adopted the New Lease Standard, as defined and further described in Note 2. Basis of Presentation and Significant Accounting Policies on January 1, 2019. Ambac is the lessee and lessor for certain lease agreements further described below. Lessee information Ambac is the lessee in operating leases for corporate offices, a data center and equipment. Ambac's purchase of Xchange resulted in additional office and equipment leases. Leases in effect at December 31, 2020, have remaining lease terms ranging from less than 1 year to 9 years. Our data center lease has an automatic renewal of one-year unless either party elects to terminate by providing 120 days notice prior to the renewal. This renewal feature is not recognized in the lease liability or right-of-use asset as it is not reasonably certain we will elect to renew. An office lease related to Xchange includes a one-time early termination provision. The lease liability and right-of-use asset on this lease consider its full term as Ambac does not reasonably expect to exercise the early termination option. No other leases contain extension or termination provisions. Lease costs are included in operating expenses on the Consolidated Statement of Total Comprehensive Income (Loss). The components of lease costs, net of sub-lessor income, is as follows:
Year Ended December 31, |  |  |  | 2020 |  | 2019
Operating lease cost |  |  |  | $ | 4 |  |  | $ | 7 |
Variable lease cost |  |  |  | — |  |  | — |
Sublease income |  |  |  | (1) |  |  | (1) |
Total lease cost |  |  |  | $ | 4 |  |  | $ | 7 |
Ambac is required to make variable lease payments under certain leases which primarily relates to variable costs of the lessor, such as taxes, insurance, maintenance and electricity. Supplemental information related to leases is as follows:
Year Ended December 31, |  | 2020 |  | 2019
Cash paid for amounts included in the measurement of operating lease liabilities |  | $ | 4 |  |  | $ | 6 |
Right-of-use assets obtained in exchange for operating lease liabilities (non-cash) (1) |  | — |  |  | 30 |
(1) Includes right-of-use assets of $14 for the year ended December 31, 2019 for leases which existed prior to the New Lease Standard implementation date of January 1, 2019. Supplemental balance sheet information related to leases is as follows:
December 31, |  | 2020 |  | 2019
Operating leases: |  |  |  |
Operating lease right of use assets |  | $ | 25 |  |  | $ | 25 |
Operating lease liabilities |  | 30 |  |  | 29 |
Weighted average remaining lease term: |  |  |  |
Operating leases |  | 8.7 years |  | 9.9 years
Weighted average discount rate: |  |  |  |
Operating leases |  | 7.7 | % |  | 7.9 | %
Operating lease right of use assets and operating lease liabilities are included in Other assets and Other liabilities, respectively, on the consolidated balance sheet. Future undiscounted lease payments, gross of sublease receipts, to be made are as follows:
As of December 31, 2020 |  | Operating Leases
2021 |  | $ | 5 |
2022 |  | 5 |
2023 |  | 5 |
2024 |  | 5 |
2025 |  | 5 |
Thereafter |  | 18 |
Total lease payments |  | 41 |
Less: imputed interest |  | (11) |
Total |  | $ | 30 |
Lessor information Ambac is the lessor in one operating sublease of corporate office space which has a remaining term of 9.0 years. There are no extension or termination provisions. Future undiscounted lease payments to be received are as follows:
As of December 31, 2020 |  | Operating Leases
2021 |  | $ | 1 |
2022 |  | 1 |
2023 |  | 1 |
2024 |  | 1 |
2025 |  | 1 |
Thereafter |  | 5 |
Total lease receipts |  | $ | 11 |

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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