Income Taxes - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

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

Table 10.1



	For the Year Ended December 31,
	2015		2014			2013
	(in thousands)
Current income tax expense	$	30,247	$	9,803		$	27,082
Deferred income tax (benefit)/expense	3,992		(6,979		)	6,670
Income tax expense	$	34,239	$	2,824		$	33,752

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

A reconciliation of tax at the statutory federal tax rate to the income tax expense for the years ended December 31, 2015, 2014, and 2013 is as follows:

Table 10.2



	For the Year Ended December 31,
	2015			2014			2013
	(dollars in thousands)
Tax expense at statutory rate	$	37,827		$	25,587		$	45,943
Non-taxable dividend income	—			(1,587		)	(2,116		)
Income from non-controlling interest	(1,874		)	(7,766		)	(7,766		)
Loss on retirement of preferred stock	(1,901		)	—			—
Valuation allowance	33			(13,542		)	(2,693		)
Other	154			132			384
Income tax expense	$	34,239		$	2,824		$	33,752
Statutory tax rate	35.0		%	35.0		%	35.0		%

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

The components of the deferred tax assets and liabilities as of December 31, 2015 and 2014 were as follows:

Table 10.3



	As of December 31,
	2015			2014
	(in thousands)
Deferred tax assets:
Basis differences related to financial derivatives	$	28,395		$	30,921
Basis differences related to securities	2,866			4,218
Unrealized losses on available-for-sale securities	5,660			—
Allowance for losses	2,297			3,545
Stock-based compensation	2,833			2,443
Capital loss carryforwards and other than temporary impairment	2,099			2,105
Valuation allowance	(2,099		)	(2,105		)
Other	1,444			1,205
Total deferred tax assets	43,495			42,332
Deferred tax liability:
Unrealized gains on available-for-sale securities	—			8,448
Basis difference in subsidiary	300			195
Other	279			298
Total deferred tax liability	579			8,941
Net deferred tax asset	$	42,916		$	33,391

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

As of December 31, 2015 and 2014, Farmer Mac did not identify any uncertain tax positions.

The following table presents the changes in unrecognized tax benefits for the years ended December 31, 2015, 2014, and 2013:

Table 10.4



	For the Year Ended December 31,
	2015		2014			2013
	(in thousands)
Beginning balance	$	—	$	1,148		$	1,046
Decreases based on tax positions related to prior years	—		(1,148		)	—
Increases based on tax positions related to current year	—		—			102
Ending balance	$	—	$	—		$	1,148

The resolution of the unrecognized tax benefits presented above represented temporary differences and, therefore, would not result in a change to Farmer Mac's effective tax rate. As of December 31, 2013, accrued interest payable and the associated interest expense related to unrecognized tax benefits was immaterial and was presented as a component of income taxes. Farmer Mac does not expect to be subject to, and has not recorded tax penalties. During 2014, the IRS examined Farmer Mac's uncertain tax positions reported in its 2011 tax return; as a result of the examination, Farmer Mac concluded it does not currently have any uncertain tax positions. Tax years 2013 through 2015 remain subject to examination.