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Income Taxes - INCOME TAXES | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | INCOME TAXES 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 |
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 | %
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 |
A valuation allowance is required to reduce a deferred tax asset to an amount that is more likely than not to be realized. Future realization of the tax benefit from a deferred tax asset depends on the existence of sufficient taxable income of the appropriate character. After the evaluation of both positive and negative objective evidence regarding the likelihood that its deferred tax assets will be realized, Farmer Mac established a valuation allowance of $0.1 million and $2.1 million as of December 31, 2016 and 2015, which was attributable to capital loss carryforwards on investment securities. Farmer Mac did not establish a valuation allowance for the remainder of its deferred tax assets because it believes it is more likely than not that those deferred tax assets will be realized. In determining its deferred tax asset valuation allowance, Farmer Mac considered its taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback and carryforward periods available under the tax law and the impact of possible tax planning strategies. During 2014, Farmer Mac reduced its deferred tax valuation allowance by $13.5 million upon utilizing capital loss carryforwards. In addition, $5.9 million and $0.1 million of capital loss carryforwards expired on December 31, 2016 and 2015, respectively, and Farmer Mac removed $2.1 million and $39,000, respectively, of corresponding deferred tax assets and the related deferred tax asset valuation allowance. Deferred tax assets are measured at rates in effect when they arise. To the extent rates change, the deferred tax asset will be adjusted to reflect the new rate. A reduction in corporate tax rates would result in a reduction in the value of the deferred tax asset. As of December 31, 2016, the amount of capital loss carryforwards was $0.2 million. These capital loss carryforwards will expire in 2021. As of December 31, 2016 and 2015, 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, 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.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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