/**
 * Implements hook_field_formatter_prepare_view().
 */
function {{ machine_name }}_field_formatter_prepare_view($entity_type, $entities, $field, $instances, $langcode, &$items, $displays) {
  $tids = array();

  // Collect every possible term attached to any of the fieldable entities.
  foreach ($entities as $id => $entity) {
    foreach ($items[$id] as $delta => $item) {
      // Force the array key to prevent duplicates.
      $tids[$item['tid']] = $item['tid'];
    }
  }

  if ($tids) {
    $terms = taxonomy_term_load_multiple($tids);

    // Iterate through the fieldable entities again to attach the loaded term
    // data.
    foreach ($entities as $id => $entity) {
      $rekey = FALSE;

      foreach ($items[$id] as $delta => $item) {
        // Check whether the taxonomy term field instance value could be loaded.
        if (isset($terms[$item['tid']])) {
          // Replace the instance value with the term data.
          $items[$id][$delta]['taxonomy_term'] = $terms[$item['tid']];
        }
        // Otherwise, unset the instance value, since the term does not exist.
        else {
          unset($items[$id][$delta]);
          $rekey = TRUE;
        }
      }

      if ($rekey) {
        // Rekey the items array.
        $items[$id] = array_values($items[$id]);
      }
    }
  }
}