Income Taxes - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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

Farmer Mac is subject to federal income taxes but is exempt from state and local income taxes. The components of the federal income tax expense for the years ended December 31, 2016, 2015, and 2014 were as follows:

Table 10.1



	For the Year Ended December 31,
	2016		2015		2014
	(in thousands)
Current income tax expense	$	37,954	$	30,247	$	9,803
Deferred income tax (benefit)/expense	4,103		3,992		(6,979		)
Income tax expense	$	42,057	$	34,239	$	2,824

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, 2016, 2015, and 2014 is as follows:

Table 10.2



	For the Year Ended December 31,
	2016			2015			2014
	(dollars in thousands)
Tax expense at statutory rate	$	41,775		$	37,827		$	25,587
Non-taxable dividend income	—			—			(1,587		)
Income from non-controlling interest	—			(1,874		)	(7,766		)
Loss on retirement of preferred stock	—			(1,901		)	—
Valuation allowance	21			33			(13,542		)
Other	261			154			132
Income tax expense	$	42,057		$	34,239		$	2,824
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, 2016 and 2015 were as follows:

Table 10.3



	As of December 31,
	2016			2015
	(in thousands)
Deferred tax assets:
Basis differences related to financial derivatives	$	15,917		$	28,395
Basis differences related to hedged items	9,307			2,866
Unrealized losses on available-for-sale securities	—			5,660
Allowance for losses	2,602			2,297
Stock-based compensation	1,648			2,833
Capital loss carryforwards and other than temporary impairment	56			2,099
Valuation allowance	(56		)	(2,099		)
Other	1,247			1,444
Total deferred tax assets	30,721			43,495
Deferred tax liability:
Unrealized gains on available-for-sale securities	16,889			—
Basis difference in subsidiary	23			300
Other	1,518			279
Total deferred tax liability	18,430			579
Net deferred tax asset	$	12,291		$	42,916

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

The following table presents the changes in unrecognized tax benefits for the years ended December 31, 2016, 2015, and 2014:

Table 10.4



	For the Year Ended December 31,
	2016		2015		2014
	(in thousands)
Beginning balance	$	—	$	—	$	1,148
Decreases based on tax positions related to prior years	—		—		(1,148		)
Increases based on tax positions related to current year	—		—		—
Ending balance	$	—	$	—	$	—

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. 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 2014 through 2016 remain subject to examination.