Income Taxes (Tables)

3 Months Ended

Mar. 31, 2016

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	2012
New York City	2012
United Kingdom	2012
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 March 31, 2016 and December 31, 2015 are presented below:



	March 31, 2016			December 31, 2015
Deferred tax liabilities:
Insurance intangible	$	402,488		$	424,239
Variable interest entities	57,408			10,053
Investments	158,576			66,278
Unearned premiums and credit fees	99,187			98,945
Unremitted foreign earnings	4,291			—
Other	33,621			34,025
Total deferred tax liabilities	755,571			633,540
Deferred tax assets:
Net operating loss and capital carryforward	1,513,867			1,504,569
Loss reserves	132,705			122,635
Compensation	3,091			2,839
AMT Credits	27,252			27,252
Other	9,913			9,913
Subtotal deferred tax assets	1,686,828			1,667,208
Valuation allowance	933,016			1,035,873
Total deferred tax assets	753,812			631,335
Net deferred tax (liability)	$	(1,759	)	$	(2,205	)