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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Farmer Mac is subject to federal corporate income taxes but is exempt from state and local corporate income taxes. The components of the federal corporate income tax expense for the years ended December 31, 2020, 2019, and 2018 were as follows: Table 10.1
| For the Year Ended December 31,
| 2020 |  | 2019 |  | 2018
| (in thousands)
Current income tax expense | $ | 30,634 |  |  | $ | 28,316 |  |  | $ | 25,317 |
Deferred income tax expense | (1,849) |  |  | 789 |  |  | 2,625 |
Income tax expense | $ | 28,785 |  |  | $ | 29,105 |  |  | $ | 27,942 |
A reconciliation of income tax at the statutory federal corporate income tax rate to the income tax expense for the years ended December 31, 2020, 2019, and 2018 is as follows: Table 10.2
| For the Year Ended December 31,
| 2020 |  | 2019 |  | 2018
| (dollars in thousands)
Tax expense at statutory rate | $ | 28,861 |  |  | $ | 29,117 |  |  | $ | 28,564 |
Excess tax benefits related to stock-based awards | (9) |  |  | (449) |  |  | (946) |
Valuation allowance | — |  |  | 49 |  |  | — |
Other | (67) |  |  | 388 |  |  | 324 |
Income tax expense | $ | 28,785 |  |  | $ | 29,105 |  |  | $ | 27,942 |
Statutory tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
The components of the deferred tax assets and liabilities as of December 31, 2020 and 2019 were as follows: Table 10.3
| As of December 31,
| 2020 |  | 2019
| (in thousands)
Deferred tax assets: |  |  |
Basis differences related to financial derivatives | $ | 100,099 |  |  | $ | 51,177 |
Unrealized losses on securities | — |  |  | 2,805 |
Allowance for losses | 3,690 |  |  | 2,650 |
Unrealized losses on cash flow hedges | 6,065 |  |  | 1,491 |
Compensation and benefits | 1,020 |  |  | 819 |
Stock-based compensation | 1,027 |  |  | 571 |
Capital loss carryforwards and other-than-temporary impairment | 86 |  |  | 86 |
Valuation allowance | (86) |  |  | (86) |
Other | 341 |  |  | 88 |
Total deferred tax assets | 112,242 |  |  | 59,601 |
Deferred tax liability: |  |  |
Basis differences related to hedged items | 91,460 |  |  | 42,940 |
Unrealized gains on securities | 2,364 |  |  | — |
Other | 97 |  |  | 151 |
Total deferred tax liability | 93,921 |  |  | 43,091 |
Net deferred tax asset | $ | 18,321 |  |  | $ | 16,510 |
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 $86,000 as of both December 31, 2020 and 2019, 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. As of December 31, 2020, no capital loss carryforwards expired. As of December 31, 2020, the amount of capital loss carryforwards was $0.4 million. These capital loss carryforwards will expire beginning in 2021. As of December 31, 2020 and 2019, Farmer Mac did not identify any uncertain tax positions. Farmer Mac did not have any unrecognized tax benefits for the years ended December 31, 2020, 2019, and 2018. Tax years 2017 through 2020 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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