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Income Taxes - INCOME TAXES | 12 Months Ended
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Dec. 31, 2017
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, 2017, 2016, and 2015 were as follows: Table 10.1
| For the Year Ended December 31,
| 2017 |  | 2016 |  | 2015
| (in thousands)
Current income tax expense | $ | 43,148 |  |  | $ | 37,954 |  |  | $ | 30,247 |
Deferred income tax (benefit)/expense | 3,221 |  |  | 4,103 |  |  | 3,992 |
Income tax expense | $ | 46,369 |  |  | $ | 42,057 |  |  | $ | 34,239 |
A reconciliation of income tax at the statutory federal corporate income tax rate to the income tax expense for the years ended December 31, 2017, 2016, and 2015 is as follows: Table 10.2
| For the Year Ended December 31,
| 2017 |  | 2016 |  | 2015
| (dollars in thousands)
Tax expense at statutory rate | $ | 45,740 |  |  | $ | 41,775 |  |  | $ | 37,827 |
Re-measurement of net deferred tax asset due to enactment of new tax legislation | 1,365 |  |  | — |  |  | — |
Excess tax benefits related to stock-based awards | (860 | ) |  | — |  |  | — |
Income from non-controlling interest | — |  |  | — |  |  | (1,874 | )
Loss on retirement of preferred stock | — |  |  | — |  |  | (1,901 | )
Valuation allowance | 4 |  |  | 21 |  |  | 33 |
Other | 120 |  |  | 261 |  |  | 154 |
Income tax expense | $ | 46,369 |  |  | $ | 42,057 |  |  | $ | 34,239 |
Statutory tax rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
The components of the deferred tax assets and liabilities as of December 31, 2017 and 2016 were as follows: Table 10.3
| As of December 31,
| 2017 |  | 2016
| (in thousands)
Deferred tax assets: |  |  |
Basis differences related to financial derivatives | $ | 6,800 |  |  | $ | 15,917 |
Basis differences related to hedged items | 5,661 |  |  | 9,307 |
Allowance for losses | 1,862 |  |  | 2,602 |
Stock-based compensation | 532 |  |  | 1,648 |
Capital loss carryforwards and other-than-temporary impairment | 36 |  |  | 56 |
Valuation allowance | (36 | ) |  | (56 | )
Compensation and Benefits | 778 |  |  | 1,222 |
Other | 74 |  |  | 2 |
Total deferred tax assets | 15,707 |  |  | 30,698 |
Deferred tax liability: |  |  |  |  |
Unrealized gains on securities | 12,376 |  |  | 16,889 |
Other | 1,283 |  |  | 1,518 |
Total deferred tax liability | 13,659 |  |  | 18,407 |
Net deferred tax asset | $ | 2,048 |  |  | $ | 12,291 |
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 $36,000 and $56,000, respectively, as of December 31, 2017 and 2016, 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. On December 31, 2016, $5.9 million of capital loss carryforwards expired and Farmer Mac removed $2.1 million of corresponding deferred tax assets and the related deferred tax asset valuation allowance. As of December 31, 2017, no capital loss carryforwards expired. As of December 31, 2017, the amount of capital loss carryforwards was $0.2 million. These capital loss carryforwards will expire in 2021. 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. The Tax Cuts and Jobs Act was enacted on December 22, 2017. This new legislation provides for significant changes to the U.S. Internal Revenue Code of 1986, as amended, that was in effect through the end of 2017 and includes a reduction of the federal corporate income tax rate from 35 percent to 21 percent, effective January 1, 2018. As a result of this reduction in the federal corporate income tax rate, Farmer Mac re-measured its net deferred tax asset at the newly enacted 21 percent federal corporate income tax rate and thus reduced its value by $1.4 million. Accordingly, Farmer Mac recorded an increase to income tax expense of $1.4 million or an increase of 1.04 percent in Farmer Mac's effective tax rate for 2017. As of December 31, 2017, Farmer Mac has completed the accounting for the income tax effects related to the new tax legislation. See Note 2(l) for more information about the accounting policy for income taxes. As of December 31, 2017 and 2016, Farmer Mac did not identify any uncertain tax positions. Farmer Mac did not incur unrecognized tax benefits for the years ended December 31, 2017, 2016, and 2015.

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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 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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