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SEC Filings

10-Q
AGNC INVESTMENT CORP. filed this Form 10-Q on 11/06/2015
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Our total annualized operating expense as a percentage of our average stockholders' equity was 1.57% and 1.47% for the three months ended September 30, 2015 and 2014, respectively, and 1.57% and 1.53% for the nine months ended September 30, 2015 and 2014, respectively.

Dividends and Income Taxes  
For the three months ended September 30, 2015 and 2014, we had estimated taxable income available to common stockholders of $59 million and $85 million (or $0.17 and $0.24 per common share), respectively, and for the nine months ended September 30, 2015 and 2014, we had estimated taxable income available to common stockholders of $340 million and $352 million (or $0.97 and $1.00 per common share), respectively.
As a REIT, we are required to distribute annually 90% of our ordinary taxable income to maintain our status as a REIT and all of our taxable income to avoid federal and state corporate income taxes. We can treat dividends declared by September 15 and paid by December 31 as having been a distribution of our taxable income for our prior tax year ("spill-back provision"). Income as determined under GAAP differs from income as determined under tax rules because of both temporary and permanent differences in income and expense recognition. The primary differences are (i) unrealized gains and losses associated with interest rate swaps and other derivatives and securities marked-to-market in current income for GAAP purposes, but excluded from taxable income until realized or settled, (ii) timing differences, both temporary and potentially permanent, in the recognition of certain realized gains and losses and (iii) temporary differences related to the amortization of net premiums paid on investments. Furthermore, our estimated taxable income is subject to potential adjustments up to the time of filing our appropriate tax returns, which occurs after the end of our fiscal year.
The following is a reconciliation of our GAAP net income to our estimated taxable income for the three and nine months ended September 30, 2015 and 2014 (dollars in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
Net income (loss)
$
(633
)
 
$
197

 
$
(373
)
 
$
89

Estimated book to tax differences:
 
 
 
 
 
 
 
Premium amortization, net
15

 
(7
)
 
(14
)
 
19

Realized (gain) loss, net
12

 
136

 
(140
)
 
177

Net capital loss/(utilization of net capital loss carryforward)

 
(246
)
 
6

 
(658
)
Unrealized (gain) loss, net
672

 
12

 
882

 
741

Other

 

 

 

Total book to tax differences
699

 
(105
)
 
734

 
279

Estimated REIT taxable income
66

 
92

 
361

 
368

Dividend on preferred stock
7

 
7

 
21

 
16

Estimated REIT taxable income available to common stockholders
$
59

 
$
85

 
$
340

 
$
352

Weighted average number of common shares outstanding - basic and diluted
347.8

 
352.8

 
350.9

 
353.5

Estimated REIT taxable income per common share - basic and diluted
$
0.17

 
$
0.24

 
$
0.97

 
$
1.00

 
 
 
 
 
 
 
 
Beginning cumulative non-deductible net capital loss
$
767

 
$
1,373

 
$
761

 
$
1,785

Net capital loss/(utilization of net capital loss carryforward)

 
(246
)
 
6

 
(658
)
Ending cumulative non-deductible net capital loss
$
767

 
$
1,127

 
$
767

 
$
1,127

Ending cumulative non-deductible net capital loss per ending common share
$
2.21

 
$
3.19

 
$
2.21

 
$
3.19

As of September 30, 2015, we had $767 million (or $2.21 per common share) of net capital loss carryforwards, which can be carried forward and applied against future net capital gains through fiscal year 2018.

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