Income Taxes (Tables)

9 Months Ended

Sep. 30, 2014

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	2010
New York City	2011
United Kingdom	2009
Italy	2009

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 September 30, 2014 and December 31, 2013 are presented below:



	September 30, 2014			December 31, 2013
Deferred tax liabilities:
Insurance intangible	$	516,254		$	559,288
Variable interest entities	107,872			131,137
Investments	199,656			168,653
Unearned premiums and credit fees	39,559			38,826
Other	2,198			2,221
Total deferred tax liabilities	865,539			900,125
Deferred tax assets:
Net operating loss and capital carryforward	2,120,747			2,177,029
Loss reserves	544,511			634,692
Compensation	9,110			8,724
AMT Credits	4,269			4,269
Other	58,160			58,581
Sub-total deferred tax assets	2,736,797			2,883,295
Valuation allowance	1,873,434			1,985,369
Total deferred tax assets	863,363			897,926
Net deferred tax liability	$	(2,176	)	$	(2,199	)