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SEC Filings

10-Q
AGNC INVESTMENT CORP. filed this Form 10-Q on 05/05/2016
Entire Document
 


Dividends and Income Taxes  
For the three months ended March 31, 2016 and 2015, we had estimated taxable income available to common stockholders of $74 million and $166 million (or $0.22 and $0.47 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 premiums and discounts 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 months ended March 31, 2016 and 2015 (dollars in millions):
 
Three Months Ended March 31,
 
2016
 
2015
Net loss
$
(772
)
 
$
(252
)
Estimated book to tax differences:
 
 
 
Premium amortization, net
55

 
26

Realized gain/loss, net
93

 
(113
)
Net capital loss/(utilization of net capital loss carryforward)
(99
)
 
(115
)
Unrealized gain/loss, net
804

 
627

Other

 

Total book to tax differences
853

 
425

Estimated REIT taxable income
81

 
173

Dividend on preferred stock
7

 
7

Estimated REIT taxable income available to common stockholders
$
74

 
$
166

Weighted average number of common shares outstanding - basic and diluted
334.4

 
352.8

Estimated REIT taxable income per common share - basic and diluted
$
0.22

 
$
0.47

 
 
 
 
Beginning cumulative non-deductible net capital loss
$
684

 
$
761

Utilization of net capital loss carryforward
(99
)
 
(115
)
Ending cumulative non-deductible net capital loss
$
585

 
$
646

Ending cumulative non-deductible net capital loss per ending common share
$
1.77

 
$
1.83

As of March 31, 2016, we had $0.6 billion (or $1.77 per common share) of net capital loss carryforwards, which can be carried forward and applied against future net capital gains through fiscal year 2018.
The following table summarizes dividends declared on our Series A Preferred Stock, depositary shares underlying our Series B Preferred Stock and common stock during the three months ended March 31, 2016 and 2015:
 
 
Dividends Declared per Share
Quarter Ended
 
Series A Preferred Stock
 
Series B Preferred Stock (Per Depositary Share)
 
Common Stock
March 31, 2016
 
$
0.50000

 
$
0.484375

 
$
0.60

March 31, 2015
 
$
0.50000

 
$
0.484375

 
$
0.66

The final tax characterization of our fiscal year 2016 dividends will be determined and reported to stockholders on their annual Form 1099-DIV statement after the end of the year.

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