Income Taxes (Tables)

6 Months Ended

Jun. 30, 2013

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		2008
New York City		2011
United Kingdom		2006
Italy		2007

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 June 30, 2013 and December 31, 2012 are presented below:


	Successor Ambac – June 30, 2013			Predecessor Ambac – December 31, 2012
Deferred tax liabilities:
Insurance intangible	$	567,564		$	—
Variable interest entities		—			22,015
Deferred acquisition costs		—			57,262
Unearned premiums and credit fees		6,165			22,714
Unrealized gains on investments		4,041			—
Other		1,907			17,251

Total deferred tax liabilities		579,677			119,242

Deferred tax assets:
Variable interest entities		59,710			—
Unrealized losses & impairments on investments		—			12,605
Net operating loss and capital carryforward		2,137,334			2,857,926
Loss reserves		833,823			490,677
Compensation		7,876			7,184
Other		3,012			5,687

Sub-total deferred tax assets		3,041,755			3,374,079
Valuation allowance		2,463,642			3,256,423

Total deferred tax assets		578,113			117,656

Net deferred tax liability	$	(1,564	)	$	(1,586	)