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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
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 | 2017
United Kingdom | 2018
Italy | 2017
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, 2021 and 2020, are presented below:
December 31, | 2021 |  | 2020
Deferred tax liabilities: |  |  |
Insurance intangible | $ | 67 |  |  | $ | 78 |
Unearned premiums and credit fees | 32 |  |  | 32 |
Investments | 14 |  |  | 22 |
Variable interest entities | 15 |  |  | 13 |
Other | 6 |  |  | 7 |
Total deferred tax liabilities | 134 |  |  | 152 |
Deferred tax assets: |  |  |
Net operating loss carryforward | 786 |  |  | 764 |
Loss reserves | 180 |  |  | 218 |
State capital loss carryforward | 7 |  |  | — |
Debentures | 7 |  |  | 22 |
Compensation | 8 |  |  | 9 |
Other | 4 |  |  | 5 |
Subtotal deferred tax assets | 993 |  |  | 1,019 |
Valuation allowance | 886 |  |  | 891 |
Total deferred tax assets | 106 |  |  | 128 |
Net deferred tax liability | $ | 28 |  |  | $ | 24 |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | U.S. and foreign components of pre-tax income (loss) were as follows:
Year Ended December 31, | 2021 |  | 2020 |  | 2019
U.S. | $ | (32) |  |  | $ | (441) |  |  | $ | (174) |
Foreign | 34 |  |  | 1 |  |  | (9) |
Total | $ | 2 |  |  | $ | (440) |  |  | $ | (183) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision (benefit) for income taxes were as follows:
Year Ended December 31, | 2021 |  | 2020 |  | 2019
Current taxes |  |  |  |  |
U.S. state and local | $ | 2 |  |  | $ | — |  |  | $ | (3) |
Foreign | 10 |  |  | 8 |  |  | 37 |
Total current taxes | 12 |  |  | 8 |  |  | 34 |
Deferred taxes |  |  |  |  |
Foreign | 6 |  |  | (10) |  |  | (1) |
Total deferred taxes | $ | 6 |  |  | $ | (10) |  |  | $ | (1) |
Provision for income taxes | $ | 18 |  |  | $ | (3) |  |  | $ | 32 |
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, 2021, 2020 and 2019 is as follows:
Year Ended December 31, | 2021 |  | 2020 |  | 2019
Total income taxes charged to net income | $ | 18 |  |  | $ | (3) |  |  | $ | 32 |
Income taxes charged (credited) to stockholders’ equity: |  |  |  |  |
Unrealized gains (losses) on investment securities | (3) |  |  | 3 |  |  | 14 |
Unrealized gains (losses) on foreign currency translations | — |  |  | — |  |  | — |
Valuation allowance to equity | 1 |  |  | (3) |  |  | (23) |
Total charged to stockholders’ equity: | (2) |  |  | 1 |  |  | (8) |
Total effect of income taxes | $ | 16 |  |  | $ | (1) |  |  | $ | 24 |
Schedule of Effective Income Tax Rate Reconciliation |
Year Ended December 31, | 2021 |  | 2020 |  | 2019
Total income taxes charged to net income | $ | 18 |  |  | $ | (3) |  |  | $ | 32 |
Income taxes charged (credited) to stockholders’ equity: |  |  |  |  |
Unrealized gains (losses) on investment securities | (3) |  |  | 3 |  |  | 14 |
Unrealized gains (losses) on foreign currency translations | — |  |  | — |  |  | — |
Valuation allowance to equity | 1 |  |  | (3) |  |  | (23) |
Total charged to stockholders’ equity: | (2) |  |  | 1 |  |  | (8) |
Total effect of income taxes | $ | 16 |  |  | $ | (1) |  |  | $ | 24 |
Reconciliation of U.S. Federal Statutory Income Tax Rate to Actual Income Tax Rate 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:
Year Ended December 31, | 2021 |  | 2020 |  | 2019
Tax on income (loss) at statutory rate | $ | — |  |  | 21 | % |  | $ | (92) |  |  | 21 | % |  | $ | (38) |  |  | 21 | %
Changes in expected tax resulting from: |  |  |  |  |  |  |  |  |  |  |
Tax-exempt interest | (2) |  |  | (114) | % |  | (2) |  |  | — | % |  | (3) |  |  | 2 | %
Foreign taxes | 8 |  |  | 448 | % |  | 6 |  |  | (1) | % |  | 40 |  |  | (22) | %
State Income Taxes | 14 |  |  | 794 | % |  | — |  |  | — | % |  | (2) |  |  | 1 | %
Substantiation adjustment | — |  |  | — | % |  | (29) |  |  | 7 | % |  | 28 |  |  | (15) | %
Valuation allowance | (4) |  |  | (230) | % |  | 113 |  |  | (26) | % |  | 8 |  |  | (4) | %
Other, net | 1 |  |  | 72 | % |  | 2 |  |  | — | % |  | — |  |  | — | %
Tax expense on income (loss) | $ | 18 |  |  | 991 | % |  | $ | (3) |  |  | 1 | % |  | $ | 32 |  |  | (18) | %
Schedule of Net Operating Loss And Tax Credit Carryovers | Pursuant to a 2013 Closing Agreement between Ambac and the United States Internal Revenue Service ("IRS"), AAC could have to pay amount to as much as $8 to the IRS should AAC utilize NOLs available to it as of December 31, 2019.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=124434304&loc=d3e36027-109320 + Details
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