TWO Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The following table summarizes the tax (benefit) provision recorded at the taxable subsidiary level for the years ended December 31, 2011, 2010 and 2009:



	Year Ended December 31,
(in thousands)	2011			2010			2009
Current tax provision (benefit):
Federal	$	4,731		$	(6	)	$	(442	)
State	—			—			—
Total current tax provision (benefit)	4,731			(6		)	(442		)
Deferred tax (benefit) provision	(5,837		)	(678		)	124
Total benefit from income taxes	$	(1,106	)	$	(684	)	$	(318	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The following is a reconciliation of the statutory federal and state rates to the effective rates, for the years ended December 31, 2011, 2010 and 2009:



	Year Ended December 31,
	2011					2010					2009
(dollars in thousands)	Amount			Percent		Amount			Percent		Amount			Percent
Computed income tax expense at federal rate	$	42,951		34	%	$	11,924		34	%	$	(3,081	)	(34	)%
State taxes, net of federal benefit, if applicable	—			—	%	—			—	%	—			—	%
Permanent differences in taxable income from GAAP income (loss)	2,731			2	%	(5		)	—	%	4,012			44	%
Dividends paid deduction	(46,788		)	(37	)%	(12,602		)	(36	)%	(1,249		)	(14	)%
Benefit from income taxes/Effective Tax Rate⁽¹⁾	$	(1,106	)	(1	)%	$	(683	)	(2	)%	$	(318	)	(4	)%

Schedule of Current and Deferred Tax Assets and Liabilities [Table Text Block]

The Company's consolidated balance sheet, as of December 31, 2011 and 2010, contains the following current and deferred tax assets and liabilities, recorded at the taxable subsidiary level:



(in thousands)	December 31, 2011			December 31, 2010
Current tax
Federal income tax payable	$	(3,898	)	$	(1	)
Current taxes receivable	157			—
State and local income tax payable	—			—
Current tax payable, net	(3,741		)	(1		)
Deferred tax assets (liabilities)
Deferred tax asset	9,710			723
Deferred tax liability	(3,319		)	(169		)
Deferred tax asset, net	6,391			554
Total tax assets and liabilities, net	$	2,650		$	553

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Components of the Company's deferred tax assets and liabilities as of December 31, 2011 and 2010 are as follows:



	December 31,
(in thousands)	2011			2010
Unrealized loss on derivative assets	$	7,429		$	392
Unrealized (gain) loss on trading securities	(1,038		)	162
Total net deferred tax assets	$	6,391		$	554