Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.6
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2012
Income Tax Disclosure [Abstract]  
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, 2012, 2011 and 2010:
 
Year Ended December 31,
(in thousands)
2012
 
2011
 
2010
Current tax (benefit) provision:
 
 
 
 
 
Federal
$
(4,586
)
 
$
4,731

 
$
(6
)
State
3

 

 

Total current tax (benefit) provision
(4,583
)
 
4,731

 
(6
)
Deferred tax benefit
(37,636
)
 
(5,837
)
 
(677
)
Total benefit from income taxes
$
(42,219
)
 
$
(1,106
)
 
$
(683
)
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, 2012, 2011 and 2010:
 
Year Ended December 31,
 
2012
 
2011
 
2010
(dollars in thousands)
Amount
 
Percent
 
Amount
 
Percent
 
Amount
 
Percent
Computed income tax expense at federal rate
$
84,894

 
34
 %
 
$
42,951

 
34
 %
 
$
11,924

 
34
 %
State taxes, net of federal benefit, if applicable
2

 
 %
 

 
 %
 

 
 %
Permanent differences in taxable income from GAAP income
118

 
 %
 
2,731

 
2
 %
 
(5
)
 
 %
Dividends paid deduction
(127,233
)
 
(51
)%
 
(46,788
)
 
(37
)%
 
(12,602
)
 
(36
)%
Benefit from income taxes/Effective Tax Rate(1)
$
(42,219
)
 
(17
)%
 
$
(1,106
)
 
(1
)%
 
$
(683
)
 
(2
)%

____________________
(1)
The benefit from income taxes is recorded at the taxable subsidiary level.

Schedule of Current and Deferred Tax Assets and Liabilities [Table Text Block]
The Company's consolidated balance sheet, as of December 31, 2012 and December 31, 2011, contains the following current and deferred tax assets and liabilities, which are included in other assets and are recorded at the taxable subsidiary level:
(in thousands)
December 31,
2012
 
December 31,
2011
Current tax
 
 
 
Federal income tax payable
$

 
$
(3,898
)
Current income taxes receivable
4,323

 
157

State and local income tax payable

 

Current tax receivable (payable), net
4,323

 
(3,741
)
Deferred tax assets (liabilities)
 
 
 
Deferred tax asset
46,727

 
9,710

Deferred tax liability
(2,543
)
 
(3,319
)
Deferred tax asset, net
44,184

 
6,391

Total tax assets and liabilities, net
$
48,507

 
$
2,650

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
Components of the Company's deferred tax assets and liabilities as of December 31, 2012 and December 31, 2011 are as follows:
(in thousands)
December 31,
2012
 
December 31,
2011
Unrealized loss on derivative assets
$
13,505

 
$
7,429

Unrealized gain on trading securities and mortgage loans held-for-sale
(1,972
)
 
(1,038
)
Capitalized start-up and organizational costs
148

 

Net operating loss carryforward
17,931

 

Capital loss carryforward
14,572

 

Total net deferred tax assets
$
44,184

 
$
6,391