Income Taxes - (Tables)

12 Months Ended

Dec. 31, 2014

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, 2014, 2013, and 2012 were as follows:

Table 10.1



	For the Year Ended December 31,
	2014			2013		2012
	(in thousands)
Current income tax expense	$	9,803		$	27,082	$	24,138
Deferred income tax (benefit)/expense	(6,979		)	6,670		(1,982		)
Income tax expense	$	2,824		$	33,752	$	22,156

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, 2014, 2013, and 2012 is as follows:

Table 10.2



	For the Year Ended December 31,
	2014			2013			2012
	(dollars in thousands)
Tax expense at statutory rate	$	25,587		$	45,943		$	31,891
Non-taxable dividend income	(1,587		)	(2,116		)	(2,116		)
Income from non-controlling interest	(7,766		)	(7,766		)	(7,766		)
Valuation allowance	(13,542		)	(2,693		)	6
Other	132			384			141
Income tax expense	$	2,824		$	33,752		$	22,156
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, 2014 and 2013 were as follows:

Table 10.3



	As of December 31,
	2014			2013
	(in thousands)
Deferred tax assets:
Basis differences related to financial derivatives	$	30,921		$	22,349
Basis differences related to securities	4,218			2,509
Unrealized losses on available-for-sale securities	—			8,762
Allowance for losses	3,545			4,667
Stock-based compensation	2,443			1,916
Capital loss carryforwards	2,105			38,532
Valuation allowance	(2,105		)	(36,432		)
Amortization of premiums on capital investments	—			1,499
Valuation allowance	—			(1,499		)
Other	1,205			2,455
Total deferred tax assets	42,332			44,758
Deferred tax liability:
Unrealized gains on available-for-sale securities	8,448			—
Basis difference in subsidiary	195			353
Other	298			360
Total deferred tax liability	8,941			713
Net deferred tax asset	$	33,391		$	44,045

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

As of December 31, 2014 Farmer Mac did not identify any uncertain tax positions. As of December 31, 2013 both the recorded liability for uncertain tax positions and the corresponding deferred tax asset were $1.1 million.

The following table presents the changes in unrecognized tax benefits for the years ended December 31, 2014, 2013, and 2012:

Table 10.4



	For the Year Ended December 31,
	2014			2013		2012
	(in thousands)
Beginning balance	$	1,148		$	1,046	$	1,175
Decreases based on tax positions related to prior years	(1,148		)	—		—
Increases/(decreases) based on tax positions related to current year	—			102		(129		)
Ending balance	$	—		$	1,148	$	1,046

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 2012 through 2014 remain subject to examination.