National Rural Utilities Cooper (NRUC) 10-Q 4 Apr 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Feb. 29, 2016shares
Document and Entity Information
Entity Registrant Name	NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP /DC/
Entity Central Index Key	70,502
Document Type	10-Q
Document Period End Date	Feb. 29, 2016
Amendment Flag	false
Current Fiscal Year End Date	--05-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	0
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Income Statement [Abstract]
Interest income	$ 253,633	$ 238,740	$ 756,074	$ 711,266
Interest expense	(171,189)	(156,850)	(504,013)	(471,677)
Net interest income	82,444	81,890	252,061	239,589
Provision for loan losses	1,735	(2,304)	(4,067)	3,475
Net interest income after provision for loan losses	84,179	79,586	247,994	243,064
Non-interest income:
Fee and other income	5,604	5,020	17,336	19,249
Derivative losses	(243,036)	(98,770)	(356,237)	(223,209)
Results of operations of foreclosed assets	1,472	(1,369)	1,605	(33,059)
Total non-interest income	(235,960)	(95,119)	(337,296)	(237,019)
Non-interest expense:
Salaries and employee benefits	(11,346)	(10,949)	(33,779)	(32,274)
Other general and administrative expenses	(11,006)	(7,059)	(31,639)	(22,514)
Losses on early extinguishment of debt	(333)	(703)	(333)	(703)
Other	(509)	(7)	(875)	50
Total non-interest expense	(23,194)	(18,718)	(66,626)	(55,441)
Loss before income taxes	(174,975)	(34,251)	(155,928)	(49,396)
Income tax benefit (expense)	593	55	153	(100)
Net loss	(174,382)	(34,196)	(155,775)	(49,496)
Less: Net loss attributable to noncontrolling interests	1,401	217	1,982	213
Net loss attributable to CFC	$ (172,981)	$ (33,979)	$ (153,793)	$ (49,283)

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (174,382)	$ (34,196)	$ (155,775)	$ (49,496)
Other comprehensive income (loss):
Unrealized gains (losses) on available-for-sale investment securities	(2,297)	1,644	589	5,246
Reclassification of derivative gains to net income	(218)	(239)	(689)	(722)
Defined benefit plan adjustments	43	(1,062)	131	(1,062)
Other comprehensive income (loss)	(2,472)	343	31	3,462
Total comprehensive loss	(176,854)	(33,853)	(155,744)	(46,034)
Less: Total comprehensive loss attributable to noncontrolling interests	1,402	220	1,985	221
Total comprehensive loss attributable to CFC	$ (175,452)	$ (33,633)	$ (153,759)	$ (45,813)

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Feb. 29, 2016	May. 31, 2015
ASSETS
Cash and cash equivalents		$ 299,024	$ 248,836
Restricted cash		4,268	485
Time deposits		340,000	485,000
Investment securities available for sale, at fair value		85,061	84,472
Loans to members	[1]	23,144,099	21,469,017
Less: Allowance for loan losses		(37,918)	(33,690)
Loans to members, net		23,106,181	21,435,327
Accrued interest and other receivables		179,212	197,828
Fixed assets, net		110,597	110,540
Debt service reserve funds		17,151	25,602
Foreclosed assets, net		118,411	116,507
Derivative assets		104,535	115,276
Other assets		28,585	26,186
Total assets		24,393,025	22,846,059
LIABILITIES AND EQUITY
Accrued interest payable		185,758	123,697
Debt outstanding:
Short-term debt		3,309,020	3,127,754
Long-term debt		17,527,497	16,244,794
Subordinated deferrable debt		395,754	395,699
Members’ subordinated certificates:
Membership subordinated certificates		629,977	645,035
Loan and guarantee subordinated certificates		594,492	640,889
Member capital securities		220,046	219,496
Total members’ subordinated certificates		1,444,515	1,505,420
Total debt outstanding		22,676,786	21,273,667
Deferred income		65,548	75,579
Derivative liabilities		688,998	408,382
Other liabilities		59,439	52,948
Total liabilities		$ 23,676,529	$ 21,934,273
Commitments and contingencies
CFC equity:
Retained equity		$ 686,417	$ 880,242
Accumulated other comprehensive income		4,114	4,080
Total CFC equity		690,531	884,322
Noncontrolling interests		25,965	27,464
Total equity		716,496	911,786
Total liabilities and equity		$ 24,393,025	$ 22,846,059
[1]	Includes nonperforming and restructured loans.

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands	Total	Non-controlling Interests	Total CFC Equity	Accumulated Other Comprehensive Income	CFC Retained Equity	Unallocated Net Income (Loss)	Members’ Capital Reserve	Patronage Capital Allocated	Membership Fees and Educational Fund
Balance at May. 31, 2014	$ 970,374	$ 26,837	$ 943,537	$ 3,649	$ 939,888	$ (178,650)	$ 485,447	$ 630,340	$ 2,751
Increase (Decrease) in Stockholders' Equity
Net loss	(49,496)	(213)	(49,283)		(49,283)	(49,283)
Other comprehensive income (loss)	3,462	(8)	3,470	3,470
Patronage capital retirement	(39,662)		(39,662)		(39,662)			(39,662)
Other	(174)	464	(638)		(638)		1	(1)	(638)
Balance at Feb. 28, 2015	884,504	27,080	857,424	7,119	850,305	(227,933)	485,448	590,677	2,113
Balance at May. 31, 2015	911,786	27,464	884,322	4,080	880,242	(293,212)	501,731	668,980	2,743
Increase (Decrease) in Stockholders' Equity
Net loss	(155,775)	(1,982)	(153,793)		(153,793)	(153,793)
Other comprehensive income (loss)	31	(3)	34	34
Patronage capital retirement	(39,384)	0	(39,384)		(39,384)			(39,384)
Other	(162)	486	(648)		(648)	429	(429)	0	(648)
Balance at Feb. 29, 2016	$ 716,496	$ 25,965	$ 690,531	$ 4,114	$ 686,417	$ (446,576)	$ 501,302	$ 629,596	$ 2,095

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (155,775)	$ (49,496)
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred income	(15,792)	(8,730)
Amortization of debt issuance costs and deferred charges	6,253	5,440
Amortization of discount on long-term debt	6,433	4,424
Amortization of issuance costs for revolving bank lines of credit	4,242	4,725
Depreciation	5,592	4,693
Provision for loan losses	4,067	(3,475)
Results of operations of foreclosed assets	(1,605)	33,059
Derivative forward value	290,952	159,832
Changes in operating assets and liabilities:
Accrued interest and other receivables	125	3,137
Accrued interest payable	62,061	66,585
Deferred income	5,760	7,091
Other	(14,849)	(4,524)
Net cash provided by operating activities	197,464	222,761
Cash flows from investing activities:
Advances on loans	(6,765,131)	(6,409,934)
Principal collections on loans	5,090,296	5,673,899
Net investment in fixed assets	(5,992)	(7,181)
Proceeds from foreclosed assets	4,050	13,088
Investments in foreclosed assets	(4,349)	(7,650)
Proceeds from sale of time deposits	145,000	165,000
Investments in equity securities available for sale	0	(25,000)
Change in restricted cash	(3,782)	485
Net cash used in investing activities	(1,539,908)	(597,293)
Cash flows from financing activities:
Proceeds from issuances of (repayments of) short-term debt, net	239,235	(879,998)
Proceeds from issuances of short-term debt with original maturity greater than 90 days	455,065	391,974
Repayments of short term-debt with original maturity greater than 90 days	(513,034)	(397,447)
Payments for issuance costs for revolving bank lines of credit	(3,211)	(3,249)
Proceeds from issuance of long-term debt	2,678,713	2,245,478
Payments for retirement of long-term debt	(1,408,641)	(912,614)
Proceeds from issuance of members’ subordinated certificates	4,973	74,657
Payments for retirement of members’ subordinated certificates	(21,618)	(145,015)
Payments for retirement of patronage capital	(38,850)	(39,198)
Net cash provided by financing activities	1,392,632	334,588
Net increase (decrease) in cash and cash equivalents	50,188	(39,944)
Beginning cash and cash equivalents	248,836	338,715
Ending cash and cash equivalents	299,024	298,771
Supplemental disclosure of cash flow information:
Cash paid for interest	425,024	390,503
Cash paid for income taxes	72	130
Non-cash financing and investing activities:
Subordinated certificates applied against loan balances	711	228
Noncontrolling interest patronage capital applied against loan balances	8
Net decrease in debt service reserve funds/debt service reserve certificates	$ (8,451)	$ (13,751)

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Feb. 29, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Significant Accounting Policies	NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company National Rural Utilities Cooperative Finance Corporation (“CFC”) is a member-owned cooperative association incorporated under the laws of the District of Columbia in April 1969. CFC’s principal purpose is to provide its members with financing to supplement the loan programs of the Rural Utilities Service (“RUS”) of the United States Department of Agriculture (“USDA”). CFC makes loans to its rural electric members so they can acquire, construct and operate electric distribution, generation, transmission and related facilities. CFC also provides its members with credit enhancements in the form of letters of credit and guarantees of debt obligations. As a cooperative, CFC is owned by and exclusively serves its membership, which consists of not-for-profit entities or subsidiaries or affiliates of not-for-profit entities. CFC is exempt from federal income taxes. Basis of Presentation and Use of Estimates The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Certain prior period amounts have been reclassified to conform to the current period presentation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and related disclosures. These estimates are based on information available as of the date of the consolidated financial statements. While management makes its best judgment, actual amounts or results could differ from these estimates. In the opinion of management, all normal, recurring adjustments have been included for a fair presentation of this interim financial information. The results of operations in the interim financial statements are not necessarily indicative of the results that may be expected for the full year. These interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, and related notes thereto, included in CFC’s Annual Report on Form 10-K for the fiscal year ended May 31, 2015 (“2015 Form 10-K”). Principles of Consolidation The accompanying consolidated financial statements include the accounts of CFC, Rural Telephone Finance Cooperative (“RTFC”), National Cooperative Services Corporation (“NCSC”) and subsidiaries created and controlled by CFC to hold foreclosed assets. All intercompany balances and transactions have been eliminated. RTFC was established to provide private financing for the rural telecommunications industry. NCSC may provide financing to members of CFC, government or quasi-government entities which own electric utility systems that meet the Rural Electrification Act definition of “rural”, and the for-profit and nonprofit entities that are owned, operated or controlled by, or provide significant benefits to certain members of CFC. CFC currently has one entity, Caribbean Asset Holdings, LLC (“CAH”), that holds foreclosed assets. CAH, which is classified as held for sale, is a holding company for various U.S. Virgin Islands, British Virgin Islands and St. Maarten-based telecommunications operating entities that were transferred to CAH as a result of a loan default by a borrower and subsequent bankruptcy proceedings. Unless stated otherwise, references to “we,” “our” or “us” relate to CFC and its consolidated entities. Variable Interest Entities Based on the accounting standards governing consolidations, equity and earnings of RTFC and NCSC are reported as noncontrolling interest. CFC manages the lending activities of RTFC and NCSC. We are required to consolidate the financial results of RTFC and NCSC because CFC is the primary beneficiary of variable interests in RTFC and NCSC due to its exposure to absorbing the majority of their expected losses. Under separate guarantee agreements, RTFC and NCSC pay CFC a fee to indemnify them against loan losses. CFC is the sole lender to and manages the business operations of RTFC through a management agreement in effect until December 1, 2016, which is automatically renewed for one-year terms thereafter unless terminated by either party. CFC is the primary source of funding to, and manages the lending activities of, NCSC through a management agreement that is automatically renewable on an annual basis unless terminated by either party. NCSC funds its lending programs through loans from CFC or debt guaranteed by CFC. In connection with these guarantees, NCSC must pay a guarantee fee. RTFC and NCSC creditors have no recourse against CFC in the event of a default by RTFC and NCSC, unless there is a guarantee agreement under which CFC has guaranteed NCSC or RTFC debt obligations to a third party. CFC had guaranteed $49 million of NCSC debt, derivative instruments and guarantees with third parties, and CFC’s maximum potential exposure for these instruments totaled $53 million as of February 29, 2016 . The maturities for NCSC obligations guaranteed by CFC extend through 2032. Guarantees of NCSC debt and derivative instruments are not included in “Note 10—Guarantees” because the debt and derivatives are reported on the condensed consolidated balance sheets. CFC guaranteed $2 million of RTFC guarantees with third parties as of February 29, 2016 . The maturities for RTFC obligations guaranteed by CFC extend through 2017 and are renewed on an annual basis. All CFC loans to RTFC and NCSC are secured by all assets and revenue of RTFC and NCSC, respectively. RTFC had total assets of $464 million including loans outstanding to members of $358 million , and NCSC had total assets of $711 million including loans outstanding of $697 million as of February 29, 2016 . CFC had committed to lend RTFC up to $4,000 million , of which $340 million was outstanding, as of February 29, 2016 . CFC had committed to provide up to $3,000 million of credit to NCSC, of which $725 million was outstanding, representing $676 million of outstanding loans and $49 million of credit enhancements as of February 29, 2016 . Interest Income Interest income on loans is recognized using the effective interest method. The following table presents the components of interest income for the three and nine months ended February 29, 2016 and February 28, 2015 . Three Months Ended Nine Months Ended (Dollars in thousands) February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Interest on long-term fixed-rate loans (1) $ 240,933 $ 224,770 $ 716,736 $ 669,121 Interest on long-term variable-rate loans 5,077 4,836 14,919 15,099 Interest on line of credit loans 6,335 6,707 18,919 20,335 Interest on restructured loans 163 — 293 10 Interest on nonperforming loans 81 — 110 — Interest on investments 1,323 2,395 5,905 6,516 Fee income (2) (279 ) 32 (808 ) 185 Total interest income $ 253,633 $ 238,740 $ 756,074 $ 711,266 ____________________________ (1) Includes loan conversion fees, which are deferred and recognized in interest income using the effective interest method. Also includes a small portion of conversion fees, which are intended to cover the administrative costs related to the conversion and are recognized into income immediately at conversion. (2) Primarily related to amortization of loan origination costs and late payment fees. For the three and nine months ended February 29, 2016 , it excludes loan upfront and arranger fees, which are not based on interest rates and are included in the fee and other income line of the condensed consolidated statements of operations. Deferred income on the condensed consolidated balance sheets primarily consists of deferred loan conversion fees, which totaled $60 million and $70 million as of February 29, 2016 and May 31, 2015 , respectively. Interest Expense The following table presents the components of interest expense for the three and nine months ended February 29, 2016 and February 28, 2015 . Three Months Ended Nine Months Ended (Dollars in thousands) February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Interest expense on debt: (1)(2)(3) Short-term debt $ 4,387 $ 2,982 $ 10,311 $ 11,786 Medium-term notes 21,773 17,774 62,745 52,640 Collateral trust bonds 83,810 79,026 248,410 232,290 Subordinated deferrable debt 4,785 4,782 14,356 14,352 Subordinated certificates 15,022 15,280 45,425 48,131 Long-term notes payable 41,412 37,006 122,766 112,478 Total interest expense $ 171,189 $ 156,850 $ 504,013 $ 471,677 ____________________________ (1) Represents interest expense and the amortization of discounts on debt. (2) Includes underwriter’s fees, legal fees, printing costs and certain accounting fees, which are deferred and recognized in interest expense using the effective interest method. Also includes issuance costs related to dealer commercial paper, which are recognized immediately as incurred. (3) Includes fees related to funding activities, including fees paid to banks participating in our revolving credit agreements. Amounts are recognized as incurred or amortized on a straight-line basis over the life of the agreement. Accounting Standards Adopted in Fiscal Year 2016 Simplifying the Presentation of Debt Issuance Costs In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, Simplifying the Presentation of Debt Issuance Costs , which amends the current presentation of debt issuance costs in the financial statements by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as an asset in the balance sheet. The guidance, which does not affect the recognition and measurement requirements for debt issuance costs, is effective for the first quarter of fiscal year 2017. However, we early-adopted this guidance in the first quarter of fiscal year 2016, and applied its provisions retrospectively, which resulted in the reclassification of unamortized debt issuance costs of $47 million as of May 31, 2015, from total assets on our condensed consolidated balance sheet to total debt outstanding. We previously presented debt issuance costs as a separate line item under total assets on our condensed consolidated balance sheets. Other than this reclassification, the adoption of the guidance did not impact our consolidated financial statements. Recently Issued but Not Yet Adopted Accounting Standards Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, which changes how entities measure certain equity investments and present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. Under the new guidance, entities will be required to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. For financial liabilities measured using the fair value option, entities will be required to record changes in fair value caused by a change in instrument-specific credit risk (own credit risk) separately in other comprehensive income. The accounting for other financial instruments, such as loans and investments in debt securities is largely unchanged. The classification and measurement guidance is effective for public entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This update will be effective in the first quarter of fiscal year 2019. We are in the process of evaluating the impact of this update on our consolidated financial statements. Amendments to the Consolidation Analysis In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis , which is intended to improve upon and simplify the consolidation assessment required to evaluate whether organizations should consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures. This update is effective in the first quarter of fiscal year 2017. We do not expect the adoption of the update to have a material impact on our consolidated financial statements. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which clarifies the principles for recognizing revenue from contracts with customers and will replace most existing revenue recognition in GAAP when it becomes effective. In July 2015, the FASB approved a one year deferral of the effective date of this standard, with a revised effective date for fiscal years beginning after December 15, 2017. Early adoption is permitted, although not prior to fiscal years beginning after December 15, 2016. The new accounting guidance, which does not apply to financial instruments, is effective beginning in the first quarter of fiscal year 2018. We do not expect the new guidance to have a material impact on our consolidated financial statements, as CFC’s primary business and source of revenue is from lending.

Investment Securities

Investment Securities	9 Months Ended
	Feb. 29, 2016
Investments [Abstract]
Investment Securities	NOTE 2—INVESTMENT SECURITIES Our investment securities consist of holdings of Federal Agricultural Mortgage Corporation (“Farmer Mac”) preferred and common stock. The following tables present the amortized cost, gross unrealized gains and losses and fair value of our investment securities, all of which are classified as available for sale, as of February 29, 2016 and May 31, 2015 . February 29, 2016 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Farmer Mac—Series A Non-Cumulative Preferred Stock $ 30,000 $ 687 $ — $ 30,687 Farmer Mac—Series B Non-Cumulative Preferred Stock 25,000 1,920 — 26,920 Farmer Mac—Series C Non-Cumulative Preferred Stock 25,000 60 — 25,060 Farmer Mac—Class A Common Stock 538 1,856 — 2,394 Total available-for-sale investment securities $ 80,538 $ 4,523 $ — $ 85,061 May 31, 2015 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Farmer Mac—Series A Non-Cumulative Preferred Stock $ 30,000 $ 264 $ — $ 30,264 Farmer Mac—Series B Non-Cumulative Preferred Stock 25,000 1,250 — 26,250 Farmer Mac—Series C Non-Cumulative Preferred Stock 25,000 900 — 25,900 Farmer Mac—Class A Common Stock 538 1,520 — 2,058 Total available-for-sale investment securities $ 80,538 $ 3,934 $ — $ 84,472 We did not have any investment securities in an unrealized loss position as of February 29, 2016 and May 31, 2015 . For additional information regarding the unrealized gains (losses) recorded on our available-for-sale investment securities, see “Note 9—Equity—Accumulated Other Comprehensive Income ”.

Loans and Commitments

Loans and Commitments	9 Months Ended
	Feb. 29, 2016
Loans and Leases Receivable Disclosure [Abstract]
Loans and Commitments	NOTE 3—LOANS AND COMMITMENTS The table below presents the outstanding principal balance of loans to members, including deferred loan origination costs, and unadvanced loan commitments, by loan type and member class, as of February 29, 2016 and May 31, 2015 . February 29, 2016 May 31, 2015 (Dollars in thousands) Loans Outstanding Unadvanced Commitments (1) Loans Outstanding Unadvanced Commitments (1) Loan type: (2) Long-term fixed-rate loans $ 21,127,042 $ — $ 19,543,274 $ — Long-term variable-rate loans 718,193 4,402,860 698,495 4,835,623 Loans guaranteed by RUS 174,990 — 179,241 — Line of credit loans 1,113,990 8,909,560 1,038,210 9,294,127 Total loans outstanding (3) 23,134,215 13,312,420 21,459,220 14,129,750 Deferred loan origination costs 9,884 — 9,797 — Loans to members $ 23,144,099 $ 13,312,420 $ 21,469,017 $ 14,129,750 Member class: (2) CFC: Distribution $ 17,700,859 $ 9,045,185 $ 16,095,043 $ 9,474,568 Power supply 4,322,069 3,219,631 4,181,481 3,273,501 Statewide and associate 56,084 135,624 65,466 127,473 CFC total 22,079,012 12,400,440 20,341,990 12,875,542 RTFC 357,967 258,690 385,709 288,810 NCSC 697,236 653,290 731,521 965,398 Total loans outstanding (3) $ 23,134,215 $ 13,312,420 $ 21,459,220 $ 14,129,750 ____________________________ (1) The interest rate on unadvanced commitments is not set until drawn; therefore, the long-term unadvanced loan commitments have been classified in this table as variable-rate unadvanced commitments. However, at the time of the advance, the borrower may select a fixed or a variable rate on the new loan. (2) Includes nonperforming and restructured loans. (3) Represents the unpaid principal balance excluding deferred loan origination costs. Unadvanced Loan Commitments Unadvanced loan commitments totaled $2,457 million and $2,765 million as of February 29, 2016 and May 31, 2015 , respectively, related to committed lines of credit loans that are not subject to a material adverse change clause at the time of each loan advance. As such, we are required to advance amounts on these committed facilities as long as the borrower is in compliance with the terms and conditions of the facility. The following table summarizes the available balance under unconditional committed lines of credit, and the related maturities by fiscal year and thereafter, as of February 29, 2016 . Available Balance Notional Maturities of Unconditional Committed Lines of Credit (Dollars in thousands) 2016 2017 2018 2019 2020 Thereafter Committed lines of credit $2,457,435 $ 11,000 $125,377 $683,351 $673,109 $591,526 $373,072 The remaining unadvanced commitments totaling $10,855 million and $11,365 million as of February 29, 2016 and May 31, 2015 , respectively, were generally subject to material adverse change clauses. Prior to making an advance on these facilities, we confirm that there has been no material adverse change in the business or condition, financial or otherwise, of the borrower since the time the loan was approved and confirm that the borrower is currently in compliance with loan terms and conditions. In some cases, the borrower’s access to the full amount of the facility is further constrained by the designated purpose, imposition of borrower-specific restrictions or by additional conditions that must be met prior to advancing funds. The following table summarizes the available balance under unadvanced commitments as of February 29, 2016 and the related maturities by fiscal year and thereafter by loan type: Available Balance Notional Maturities of Unadvanced Commitments (Dollars in thousands) 2016 2017 2018 2019 2020 Thereafter Line of credit loans $ 8,909,560 $ 280,881 $ 5,200,892 $ 1,120,869 $ 909,795 $ 742,503 $ 654,620 Long-term loans 4,402,860 126,400 1,029,474 700,609 1,078,147 882,742 585,488 Total $ 13,312,420 $ 407,281 $ 6,230,366 $ 1,821,478 $ 1,987,942 $ 1,625,245 $ 1,240,108 Unadvanced commitments related to line of credit loans are typically for periods not to exceed five years and are generally revolving facilities used for working capital and backup liquidity purposes. Historically, we have experienced a very low utilization rate on line of credit loan facilities, whether or not there is a material adverse change clause. Since we generally do not charge a fee on the unadvanced portion of the majority of our loan facilities, our borrowers will typically request long-term facilities to fund construction work plans and other capital expenditures for periods of up to five years and draw down on the facility over that time. In addition, borrowers will typically request an amount in excess of their immediate estimated loan requirements to avoid the expense related to seeking additional loan funding for unexpected items. These factors contribute to our expectation that the majority of the unadvanced commitments will expire without being fully drawn upon and that the total unadvanced amount does not necessarily represent future cash funding requirements. Loan Sales We transfer some of our loans to third parties, generally at par value, under our direct loan sale program. Our loan transfers meet the applicable accounting criteria for sale accounting. Accordingly, we remove the loans from our condensed consolidated balance sheets when control has been surrendered and recognize a gain or loss. Because the loans are sold at par, we record immaterial losses on the sale of these loans for unamortized deferred loan origination costs.We retain the servicing performance obligations on these loans and recognize related servicing fees on an accrual basis over the period for which servicing activity is provided, as we believe the servicing fee represents adequate compensation. We do not hold any continuing interest in the loans sold to date other than servicing performance obligations. We have no obligation to repurchase loans from the purchaser, except in the case of breaches of representations and warranties. We sold CFC loans with outstanding balances totaling $84 million and $25 million , at par for cash, during the nine months ended February 29, 2016 and February 28, 2015 , respectively. Credit Quality We closely monitor loan performance trends to manage and evaluate our credit risk exposure. Our goal is to provide a balance between the credit needs of our members while also ensuring sound credit quality of our loan portfolio. Payment status and internal risk rating trends are indicators, among others, of the level of credit risk within our loan portfolios. As part of our strategy to reduce our credit risk exposure, we entered into a long-term standby purchase commitment agreement with Farmer Mac on August 31, 2015. Under this agreement, we may designate certain loans, as approved by Farmer Mac, and in the event any such loan later goes into material default for at least 90 days, upon request by us, Farmer Mac must purchase such loan at par value. We have designated, and Farmer Mac has approved an initial tranche of loans with an aggregate outstanding principal balance of $520 million as of August 31, 2015, which were reduced by subsequent loan principal payments to $511 million as of February 29, 2016 . We are paying Farmer Mac a monthly fee based on the unpaid principal balance of the loans in the tranche(s) for the commitment to purchase loans under the agreement. Payment Status of Loans The tables below present the payment status of loans outstanding by member class as of February 29, 2016 and May 31, 2015 . February 29, 2016 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due (1) Total Past Due Total Financing Receivables Nonaccrual Loans CFC: Distribution $ 17,700,859 $ — $ — $ — $ 17,700,859 $ — Power supply 4,322,069 — — — 4,322,069 — Statewide and associate 56,084 — — — 56,084 — CFC total 22,079,012 — — — 22,079,012 — RTFC 354,461 — 3,506 3,506 357,967 5,864 NCSC 697,236 — — — 697,236 — Total loans outstanding $ 23,130,709 $ — $ 3,506 $ 3,506 $ 23,134,215 $ 5,864 As a % of total loans 99.98 % — % 0.02 % 0.02 % 100.00 % 0.03 % May 31, 2015 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due (1) Total Total Financing Nonaccrual Loans CFC: Distribution $ 16,095,043 $ — $ — $ — $ 16,095,043 $ 7,221 Power supply 4,181,481 — — — 4,181,481 — Statewide and associate 65,466 — — — 65,466 — CFC total 20,341,990 — — — 20,341,990 7,221 RTFC 385,709 — — — 385,709 4,221 NCSC 731,521 — — — 731,521 294 Total loans outstanding $ 21,459,220 $ — $ — $ — $ 21,459,220 $ 11,736 As a % of total loans 100.00 % — % — % — % 100.00 % 0.05 % ____________________________ (1) All loans 90 days or more past due are on nonaccrual status. Internal Risk Ratings of Loans We evaluate the credit quality of our loans using an internal risk rating system that employs similar criteria for all member classes. Our internal risk rating system is based on a determination of a borrower’s risk of default utilizing both quantitative and qualitative measurements. We have grouped our risk ratings into the categories of pass and criticized based on the criteria below. (i) Pass: Borrowers that are not experiencing difficulty and/or not showing a potential or well-defined credit weakness. (ii) Criticized: Includes borrowers categorized as special mention, substandard and doubtful as described below: • Special mention: Borrowers that may be characterized by a potential credit weakness or deteriorating financial condition that is not sufficiently serious to warrant a classification of substandard or doubtful. • Substandard: Borrowers that display a well-defined credit weakness that may jeopardize the full collection of principal and interest. • Doubtful: Borrowers that have a well-defined weakness and the full collection of principal and interest is questionable or improbable. Borrowers included in the pass, special mention, and substandard categories are generally reflected in the general portfolio of loans. Borrowers included in the doubtful category are reflected in the impaired portfolio of loans. Each risk rating is reassessed annually based on the receipt of the borrower’s audited financial statements; however, interim downgrades and upgrades may take place at any time as significant events or trends occur. The following table presents our loan portfolio by risk rating category and member class based on available data as of February 29, 2016 and May 31, 2015 . February 29, 2016 May 31, 2015 (Dollars in thousands) Pass Criticized Total Pass Criticized Total CFC: Distribution $ 17,667,879 $ 32,980 $ 17,700,859 $ 16,062,516 $ 32,527 $ 16,095,043 Power supply 4,322,069 — 4,322,069 4,181,481 — 4,181,481 Statewide and associate 55,827 257 56,084 65,200 266 65,466 CFC total 22,045,775 33,237 22,079,012 20,309,197 32,793 20,341,990 RTFC 344,886 13,081 357,967 373,087 12,622 385,709 NCSC 694,268 2,968 697,236 727,159 4,362 731,521 Total loans outstanding $ 23,084,929 $ 49,286 $ 23,134,215 $ 21,409,443 $ 49,777 $ 21,459,220 Allowance for Loan Losses We maintain an allowance for loan losses at a level estimated by management to provide for probable losses inherent in the loan portfolio as of each balance sheet date. The tables below summarize changes, by company, in the allowance for loan losses as of and for the nine months ended February 29, 2016 and February 28, 2015 . Three Months Ended February 29, 2016 (Dollars in thousands) CFC RTFC NCSC Total Balance as of November 30, 2015 $ 27,700 $ 5,918 $ 5,982 $ 39,600 Provision for loan losses (2,136 ) 798 (397 ) (1,735 ) Recoveries 53 — — 53 Balance as of February 29, 2016 $ 25,617 $ 6,716 $ 5,585 $ 37,918 Three Months Ended February 28, 2015 (Dollars in thousands) CFC RTFC NCSC Total Balance as of November 30, 2014 $ 41,185 $ 5,027 $ 4,545 $ 50,757 Provision for loan losses 2,366 (193 ) 131 2,304 Recoveries 53 — — 53 Balance as of February 28, 2015 $ 43,604 $ 4,834 $ 4,676 $ 53,114 Nine Months Ended February 29, 2016 (Dollars in thousands) CFC RTFC NCSC Total Balance as of May 31, 2015 $ 23,716 $ 4,533 $ 5,441 $ 33,690 Provision for loan losses 1,740 2,183 144 4,067 Recoveries 161 — — 161 Balance as of February 29, 2016 $ 25,617 $ 6,716 $ 5,585 $ 37,918 Nine Months Ended February 28, 2015 (Dollars in thousands) CFC RTFC NCSC Total Balance as of May 31, 2014 $ 45,600 $ 4,282 $ 6,547 $ 56,429 Provision for loan losses (2,156 ) 552 (1,871 ) (3,475 ) Recoveries 160 — — 160 Balance as of February 28, 2015 $ 43,604 $ 4,834 $ 4,676 $ 53,114 Our allowance for loan losses consists of a specific allowance for loans individually evaluated for impairment and a collective allowance for loans collectively evaluated for impairment. The tables below present, by company, the components of our allowance for loan losses and the recorded investment of the related loans as of February 29, 2016 and May 31, 2015 . February 29, 2016 (Dollars in thousands) CFC RTFC NCSC Total Ending balance of the allowance: Collectively evaluated $ 25,617 $ 2,162 $ 5,585 $ 33,364 Individually evaluated — 4,554 — 4,554 Total ending balance of the allowance $ 25,617 $ 6,716 $ 5,585 $ 37,918 Recorded investment in loans: Collectively evaluated $ 22,072,296 $ 344,886 $ 697,236 $ 23,114,418 Individually evaluated 6,716 13,081 — 19,797 Total recorded investment in loans $ 22,079,012 $ 357,967 $ 697,236 $ 23,134,215 Loans to members, net (1) $ 22,053,395 $ 351,251 $ 691,651 $ 23,096,297 May 31, 2015 (Dollars in thousands) CFC RTFC NCSC Total Ending balance of the allowance: Collectively evaluated $ 23,716 $ 4,138 $ 5,441 $ 33,295 Individually evaluated — 395 — 395 Total ending balance of the allowance $ 23,716 $ 4,533 $ 5,441 $ 33,690 Recorded investment in loans: Collectively evaluated $ 20,334,769 $ 381,488 $ 731,227 $ 21,447,484 Individually evaluated 7,221 4,221 294 11,736 Total recorded investment in loans $ 20,341,990 $ 385,709 $ 731,521 $ 21,459,220 Loans to members, net (1) $ 20,318,274 $ 381,176 $ 726,080 $ 21,425,530 ____________________________ (1) Excludes deferred origination costs of $10 million as of February 29, 2016 and May 31, 2015 . Impaired Loans Our recorded investment in individually-impaired loans, which consists of the unpaid principal balance, and the related specific valuation allowance, by member class, as of February 29, 2016 and May 31, 2015 are summarized below. February 29, 2016 May 31, 2015 (Dollars in thousands) Recorded Investment Related Allowance Recorded Investment Related Allowance With no specific allowance recorded: CFC/Distribution $ 6,716 $ — $ 7,221 $ — NCSC — — 294 — Total 6,716 — 7,515 — With a specific allowance recorded: RTFC 13,081 4,554 4,221 395 Total 13,081 4,554 4,221 395 Total impaired loans $ 19,797 $ 4,554 $ 11,736 $ 395 The tables below represent the average recorded investment in impaired loans and the interest income recognized, by member class, for the three and nine months ended February 29, 2016 and February 28, 2015 . Three Months Ended February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 (Dollars in thousands) Average Recorded Investment Interest Income Recognized CFC/Distribution $ 6,716 $ 7,221 $ 130 $ — NCSC — 312 — — RTFC 13,362 1,580 113 — Total impaired loans $ 20,078 $ 9,113 $ 243 $ — Nine Months Ended February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 (Dollars in thousands) Average Recorded Investment Interest Income Recognized CFC/Distribution $ 6,884 $ 7,342 $ 260 $ — NCSC — 334 — 10 RTFC 9,092 1,656 142 — Total impaired loans $ 15,976 $ 9,332 $ 402 $ 10 Troubled Debt Restructured (“TDR”) and Nonperforming Loans TDR Loans The table below summarizes modified loans accounted for and reported as TDRs, the performance status of the loan, and the related unadvanced commitments, by member class, as of February 29, 2016 and May 31, 2015 . February 29, 2016 May 31, 2015 (Dollars in thousands) Loans Outstanding % of Total Loans Unadvanced Commitments (1) Loans Outstanding % of Total Loans Unadvanced Commitments (1) TDR loans: Nonperforming TDR loans: RTFC $ 3,506 $ — $ — $ — Total nonperforming TDR loans 3,506 0.02 % — — — % — Performing TDR loans: CFC/Distribution (2) 6,716 — 7,221 — NCSC — — 294 — RTFC 7,217 — 4,221 — Total performing TDR loans 13,933 0.06 — 11,736 0.05 — Total TDR loans $ 17,439 0.08 % $ — $ 11,736 0.05 % $ — ____________________________ (1) The interest rate on unadvanced commitments is not set until drawn; therefore, the long-term unadvanced loan commitments have been classified in this table as variable-rate unadvanced commitments. However, at the time of the advance, the borrower may select a fixed or a variable rate on the new loan. (2) A borrower in this category also had a line of credit loan outstanding that was classified as performing as of February 29, 2016 and May 31, 2015 . Unadvanced commitments related to this line of credit loan totaled $3 million and $2 million as of February 29, 2016 and May 31, 2015 , respectively. All loans classified as performing TDR loans were performing in accordance with the terms of the restructured loan agreement as of February 29, 2016 and May 31, 2015 . The TDR loans classified as performing as of May 31, 2015 were on nonaccrual status as of that date. These loans were returned to accrual status during the nine months ended February 29, 2016 . Nonperforming Loans The table below summarizes nonperforming loans and the related unadvanced commitments, by member class, as of February 29, 2016 and May 31, 2015 . February 29, 2016 May 31, 2015 (Dollars in thousands) Loans Outstanding % of Total Loans Unadvanced Commitments (1) Loans Outstanding % of Total Loans Unadvanced Commitments (1) Nonperforming loans: RTFC $ 2,358 $ — $ — $ — Total nonperforming loans $ 2,358 0.01 % $ — $ — — % $ — ____________________________ (1) The interest rate on unadvanced commitments is not set until drawn; therefore, the long-term unadvanced loan commitments have been classified in this table as variable-rate unadvanced commitments. However, at the time of the advance, the borrower may select a fixed or a variable rate on the new loan. The following table shows foregone interest income as a result of holding loans on nonaccrual status for the three and nine months ended February 29, 2016 and February 28, 2015 . Three Months Ended Nine Months Ended (Dollars in thousands) February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Nonperforming loans $ 2 $ 23 $ 14 $ 74 Performing TDR loans — 132 166 396 Nonperforming TDR loans 31 — 77 — Total $ 33 $ 155 $ 257 $ 470 Pledging of Loans and Loans on Deposit We are required to pledge eligible mortgage notes in an amount at least equal to the outstanding balance of our secured debt. The following table summarizes our loans outstanding as collateral pledged to secure our collateral trust bonds, Clean Renewable Energy Bonds and notes payable to Farmer Mac and the amount of the corresponding debt outstanding as of February 29, 2016 and May 31, 2015 , See “Note 5—Short-Term Debt and Credit Arrangements” and “Note 6—Long-Term Debt”) for information on our borrowings. (Dollars in thousands) February 29, 2016 May 31, 2015 Collateral trust bonds: 2007 indenture: Distribution system mortgage notes $ 7,335,292 $ 6,551,836 RUS guaranteed loans qualifying as permitted investments 152,966 156,665 Total pledged collateral $ 7,488,258 $ 6,708,501 Collateral trust bonds outstanding 6,747,711 6,197,711 1994 indenture: Distribution system mortgage notes $ 852,944 $ 905,656 Collateral trust bonds outstanding 800,000 855,000 Farmer Mac: Distribution and power supply system mortgage notes $ 2,736,592 $ 2,160,805 Notes payable outstanding 2,312,616 1,910,688 Clean Renewable Energy Bonds Series 2009A: Distribution and power supply system mortgage notes $ 17,656 $ 19,260 Cash — 485 Total pledged collateral $ 17,656 $ 19,745 Notes payable outstanding 14,871 16,529 We are required to maintain collateral on deposit in an amount at least equal to the balance of debt outstanding to the Federal Financing Bank (“FFB”) of the United States Treasury issued under the Guaranteed Underwriter Program of the USDA (the “Guaranteed Underwriter Program”). See “Note 5—Short-Term Debt and Credit Arrangements” and “Note 6—Long-Term Debt.” The following table shows the collateral on deposit and the amount of the corresponding debt outstanding as of February 29, 2016 and May 31, 2015 . (Dollars in thousands) February 29, 2016 May 31, 2015 FFB: Distribution and power supply system mortgage notes on deposit $ 5,404,553 $ 4,943,746 Notes payable outstanding 4,786,627 4,406,785 On March 29, 2016, we entered into a second amended restated and consolidated pledge agreement with RUS and U.S. Bank National Association to pledge all mortgage notes previously held on deposit pursuant to the Guaranteed Underwriter Program and, in connection with any advance, pledge collateral satisfactory to RUS pursuant to the terms of the facility. The agreement replaces the previous pledge agreement, dated December 13, 2012, and will govern all collateral under the Guaranteed Underwriting Program.

Foreclosed Assets

Foreclosed Assets	9 Months Ended
	Feb. 29, 2016
Repossessed Assets [Abstract]
Foreclosed Assets	NOTE 4—FORECLOSED ASSETS CAH is the only entity in which we held foreclosed assets as of February 29, 2016 . CAH had total assets, which consisted primarily of property, plant and equipment and goodwill and other intangible assets of $164 million as of February 29, 2016 . CAH had total liabilities of $241 million as of February 29, 2016 and an equity deficit of $77 million . CAH’s total liabilities included loans and interest payable to CFC, which have been eliminated in consolidation, of $190 million as of February 29, 2016 . Sale of CAH On September 30, 2015, CFC entered into a Purchase Agreement with CAH, ATN VI Holdings, LLC (“Atlantic”) and Atlantic Tele-Network, Inc., the parent corporation of Atlantic, to sell all of the issued and outstanding membership interests of CAH to Atlantic for a purchase price of $145 million , subject to certain adjustments. We expect to complete the transaction during the second half of calendar year 2016, subject to the satisfaction or waiver of various closing conditions under the Purchase Agreement, including, among other things, the receipt of required communications regulatory approvals in the United States, United States Virgin Islands, British Virgin Islands and St. Maarten, the expiration or termination of applicable waiting periods under applicable competition laws, and the absence of a material adverse effect or material adverse regulatory event. Foreclosed Asset Activity The table below summarizes amounts recorded in our consolidated financial statements for CAH as of and for the nine months ended February 29, 2016 . Nine Months Ended February 29, 2016 (Dollars in thousands) Balance as of May 31, 2015 $ 116,507 Change in estimated net proceeds (1) 1,904 Balance as of February 29, 2016 $ 118,411 ____________________________ (1) Included as a component of results of foreclosed assets on our consolidated statements of operations. The amount recorded on our condensed consolidated balance sheet for CAH of $118 million as of February 29, 2016 reflects the expected net proceeds from the completion of the CAH sales transaction. The expected net proceeds is based on the contractual purchase price of $145 million , plus agreed-upon purchase price adjustments less estimated selling costs.

Short-Term Debt and Credit Arra

Short-Term Debt and Credit Arrangements	9 Months Ended
	Feb. 29, 2016
Debt Disclosure [Abstract]
Short-Term Debt and Credit Arrangements	NOTE 5—SHORT-TERM DEBT AND CREDIT ARRANGEMENTS The following is a summary of short-term debt outstanding as of February 29, 2016 and May 31, 2015 . (Dollars in thousands) February 29, 2016 May 31, 2015 Short-term debt: Commercial paper sold through dealers, net of discounts (1) $ 954,884 $ 984,954 Commercial paper sold directly to members, at par (1)(2) 865,611 736,162 Select notes 741,927 671,635 Daily liquidity fund notes 544,503 509,131 Medium-term notes sold to members 202,095 225,872 Total short-term debt $ 3,309,020 $ 3,127,754 ____________________________ (1) Backup liquidity is provided by our revolving credit agreements. (2) Includes commercial paper sold directly to associates and affiliates. Revolving Credit Agreements We had $3,420 million of commitments under revolving credit agreements as of February 29, 2016 and May 31, 2015 . Under our current revolving credit agreements, we have the ability to request up to $300 million of letters of credit, which would result in a reduction in the remaining available under the facilities. On November 19, 2015, we amended and restated the $1,665 million three-year and $1,645 million five-year revolving credit agreements to extend the maturity dates to November 19, 2018 and November 19, 2020, respectively, from October 28, 2017 and October 28, 2019, respectively. Commitments of $25 million under the three-year agreement will expire at the prior maturity date of October 28, 2017. Commitments of $45 million under the five-year agreement will expire at the prior maturity date of October 28, 2019. Also, as part of the amendment, the commitments from three banks were increased by $45 million . Prior to this amendment, NCSC assumed $155 million in commitments from one of the banks, which was reduced to $110 million as part of the amendment on November 19, 2015. Although the total commitment amount under our new revolving credit agreements is unchanged from the previous total of $3,420 million , NCSC’s commitment amount is excluded from the commitment amount from third parties of $3,310 million because NCSC receives all of its funding from CFC and NCSC's financial results are consolidated with CFC. The NCSC assumption of $110 million of commitments under the revolving credit agreements also reduces the total letters of credit from third parties, to $290 million . The following table presents the total commitment, the net amount available for use and the outstanding letters of credit under our revolving credit agreements as of February 29, 2016 and May 31, 2015 . February 29, 2016 May 31, 2015 (Dollars in millions) Total Commitment Letters of Credit Outstanding Net Available for Use (1) Total Commitment Letters of Credit Outstanding Net Available for Use (1) Maturity Annual Facility Fee (2) 3-year agreement $ 25 $ — $ 25 $ 1,720 $ — $ 1,720 October 28, 2017 7.5 bps 5-year agreement 45 — 45 1,700 1 1,699 October 28, 2019 10 bps 3-year agreement 1,640 — 1,640 — — — November 19, 2018 7.5 bps 5-year agreement 1,600 1 1,599 — — — November 19, 2020 10 bps Total $ 3,310 $ 1 $ 3,309 $ 3,420 $ 1 $ 3,419 ____________________________ (1) Reflects amounts available from unaffiliated third parties that are not consolidated by CFC. (2) Facility fee determined by CFC’s senior unsecured credit ratings based on the pricing schedules put in place at the inception of the related agreement. The following represents our required and actual financial ratios under the revolving credit agreements as of February 29, 2016 and May 31, 2015 . Actual Requirement February 29, 2016 May 31, 2015 Minimum average adjusted TIER over the six most recent fiscal quarters (1) 1.025 1.27 1.28 Minimum adjusted TIER for the most recent fiscal year (1) (2) 1.05 1.30 1.30 Maximum ratio of adjusted senior debt to total equity (1) 10.00 6.31 5.93 ____________________________ (1) In addition to the adjustments made to the leverage ratio set forth in “Item 7. MD&A—Non-GAAP Financial Measures,” senior debt excludes guarantees to member systems that have certain investment-grade ratings by Moody’s and S&P. The TIER and debt-to-equity calculations include the adjustments set forth in “Item 7. MD&A—Non-GAAP Financial Measures” and exclude the results of operations and other comprehensive income for CAH. (2) We must meet or exceed the required ratios in order to retire patronage capital. We were in compliance with all covenants and conditions under our revolving credit agreements and there were no borrowings outstanding under these agreements as of February 29, 2016 and May 31, 2015 .

Long-Term Debt

Long-Term Debt	9 Months Ended
	Feb. 29, 2016
Debt Instruments [Abstract]
Long-Term Debt	NOTE 6—LONG-TERM DEBT The following is a summary of long-term debt outstanding as of February 29, 2016 and May 31, 2015 . (Dollars in thousands) February 29, 2016 May 31, 2015 Unsecured long-term debt: Medium-term notes sold through dealers $ 2,793,119 $ 2,749,894 Medium-term notes sold to members 360,917 392,298 Subtotal medium-term notes 3,154,036 3,142,192 Unamortized discount (580 ) (706 ) Debt issuance costs (17,190 ) (15,335 ) Total unsecured medium-term notes 3,136,266 3,126,151 Guaranteed Underwriter Program notes payable 4,786,627 4,406,785 Debt issuance costs (300 ) (320 ) Total Guaranteed Underwriter Program notes payable 4,786,327 4,406,465 Other unsecured notes payable 29,092 31,168 Unamortized discount (527 ) (626 ) Debt issuance costs (130 ) (155 ) Total other unsecured notes payable 28,435 30,387 Total unsecured notes payable 4,814,762 4,436,852 Total unsecured long-term debt 7,951,028 7,563,003 Secured long-term debt: Collateral trust bonds 7,547,711 7,052,711 Unamortized discount (268,024 ) (271,201 ) Debt issuance costs (30,283 ) (26,443 ) Total collateral trust bonds 7,249,404 6,755,067 Farmer Mac notes payable 2,312,616 1,910,688 Other secured notes payable 14,871 16,529 Debt issuance costs (422 ) (493 ) Total other secured notes payable 14,449 16,036 Total secured notes payable 2,327,065 1,926,724 Total secured long-term debt 9,576,469 8,681,791 Total long-term debt $ 17,527,497 $ 16,244,794 Collateral Trust Bonds During the nine months ended February 29, 2016 , we issued a total of $1,450 million collateral trust bonds with an average coupon of 2.48% and maturities ranging between 2019 and 2025. On February 16, 2016, we redeemed $300 million of 3.05% collateral trust bonds due March 1, 2016. The premium and unamortized issuance costs totaling $0.3 million were recorded as a loss on early extinguishment of debt during the third quarter of fiscal year 2016. Unsecured Notes Payable As of February 29, 2016 and May 31, 2015 , we had unsecured notes payable totaling $4,786 million and $4,407 million , respectively, outstanding under bond purchase agreements with the FFB and a bond guarantee agreement with RUS issued under the Guaranteed Underwriter Program, which provides guarantees to the FFB. We pay RUS a fee of 30 basis points per year on the total amount borrowed. As of February 29, 2016 , $4,786 million of unsecured notes payable outstanding under the Guaranteed Underwriter Program require us to place mortgage notes on deposit in an amount at least equal to the principal balance of the notes outstanding. See “Note 3—Loans and Commitments” for additional information on the mortgage notes held on deposit and the triggering events that result in these mortgage notes becoming pledged as collateral. During the nine months ended February 29, 2016 , we borrowed $400 million under the Guaranteed Underwriter Program. As of February 29, 2016 , we had up to $350 million available under committed loan facilities from the Federal Financing Bank as part of this program. We are required to maintain collateral on deposit in an amount at least equal to the balance of debt outstanding to the FFB under this program. On September 28, 2015, we received a commitment from RUS to guarantee a loan from the Federal Financing Bank for additional funding of $250 million as part of the Guaranteed Underwriter Program. As a result, we will have an additional $250 million available under the Guaranteed Underwriter Program with a 20 -year maturity repayment period during the three-year period following the date of closing. Secured Notes Payable As of February 29, 2016 and May 31, 2015 , secured notes payable include $2,313 million and $1,911 million , respectively, in debt outstanding to Farmer Mac under a note purchase agreement totaling $4,500 million . Under the terms of the note purchase agreement, we can borrow up to $4,500 million at any time through January 11, 2020, and thereafter automatically extend the agreement on each anniversary date of the closing for an additional year, unless prior to any such anniversary date, Farmer Mac provides CFC with a notice that the draw period would not be extended beyond the remaining term. During the nine months ended February 29, 2016 , we borrowed a total of $430 million under the note purchase agreement with Farmer Mac. The agreement with Farmer Mac is a revolving credit facility that allows us to borrow, repay and re-borrow funds at any time through maturity or from time to time as market conditions permit, provided that the principal amount at any time outstanding is not more than the total available under the agreement. On July 31, 2015, we entered into a new revolving note purchase agreement with Farmer Mac totaling $300 million . Under the terms of the new agreement, we can borrow up to $300 million at any time through July 31, 2018. This agreement with Farmer Mac is a revolving credit facility that allows us to borrow, repay and re-borrow funds at any time through maturity or from time to time, provided that the principal amount at any time outstanding is not more than the total available under the agreement. We are required to pledge eligible distribution system or power supply system loans as collateral in an amount at least equal to the total principal amount of notes outstanding under the Farmer Mac agreements. See “Note 3—Loans and Commitments” for additional information on the collateral pledged to secure notes payable under these programs. As of February 29, 2016 and May 31, 2015 , we were in compliance with all covenants and conditions under our senior debt indentures.

Subordinated Deferrable Debt

Subordinated Deferrable Debt	9 Months Ended
	Feb. 29, 2016
Subordinated Debt [Abstract]
Subordinated Deferrable Debt	NOTE 7—SUBORDINATED DEFERRABLE DEBT As of both February 29, 2016 and May 31, 2015 , we had $396 million of 4.75% subordinated deferrable debt outstanding due in 2043. The outstanding balance is presented net of $4 million in unamortized debt issuance costs for both periods. Subordinated deferrable debt currently outstanding is callable at par on or after April 30, 2023.

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Feb. 29, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	NOTE 8—DERIVATIVE FINANCIAL INSTRUMENTS Use of Derivatives We are an end user of derivative financial instruments and do not engage in derivative trading. We use derivatives, primarily interest rate swaps and treasury rate locks, to manage interest rate risk. Derivatives may be privately negotiated contracts, which are often referred to as over-the-counter (“OTC”) derivatives, or they may be listed and traded on an exchange. We generally engage in OTC derivative transactions. Accounting for Derivatives In accordance with the accounting standards for derivatives and hedging activities, we record derivative instruments at fair value as either a derivative asset or derivative liability on our condensed consolidated balance sheets. We report derivative asset and liability amounts on a gross basis based on individual contracts, which does not take into consideration the effects of master netting agreements or collateral netting. Derivatives in a gain position are reported as derivative assets on our condensed consolidated balance sheets, while derivatives in a loss position are reported as derivative liabilities. Accrued interest related to derivatives is reported on our condensed consolidated balance sheets as a component of either accrued interest and other receivables or accrued interest payable. If we do not elect hedge accounting treatment, changes in the fair value of derivative instruments, which consist of net accrued periodic derivative cash settlements and derivative forward value amounts, are recognized in our consolidated statements of operations under derivative gains (losses). If we elect hedge accounting treatment for derivatives, we formally document, designate and assess the effectiveness of the hedge relationship. Changes in the fair value of derivatives designated as qualifying fair value hedges are recorded in earnings together with offsetting changes in the fair value of the hedged item and any related ineffectiveness. Changes in the fair value of derivatives designated as qualifying cash flow hedges are recorded as a component of other comprehensive income (“OCI”), to the extent that the hedge relationships are effective, and reclassified AOCI to earnings using the effective interest method over the term of the forecasted transaction. Any ineffectiveness in the hedging relationship is recognized as a component of derivative gains (losses) in our consolidated statement of operations. We generally do not designate interest rate swaps, which represent the substantial majority of our derivatives, for hedge accounting. Accordingly, changes in the fair value of interest rate swaps are reported in our consolidated statements of operations under derivative gains (losses). Net periodic cash settlements related to interest rate swaps are classified as an operating activity in our consolidated statements of cash flows. We typically designate treasury rate locks as cash flow hedges of forecasted debt issuances. Accordingly, changes in the fair value of the derivative instruments are recorded as a component of OCI and reclassified to interest expense when the forecasted transaction occurs using the effective interest method. Any ineffectiveness in the hedging relationship is recognized as a component of derivative gains (losses) in our consolidated statements of operations. We did not have any derivatives designated as accounting hedges as of February 29, 2016 and May 31, 2015 . Outstanding Notional Amount of Derivatives The notional amount provides an indication of the volume of our derivatives activity, but this amount is not recorded on our condensed consolidated balance sheets. The notional amount is used only as the basis on which interest payments are determined and is not the amount exchanged. The following table shows the outstanding notional amounts and the weighted-average rate paid and received for our interest rate swaps, by type, as of February 29, 2016 and May 31, 2015 . The substantial majority of our interest rate exchange agreements use an index based on the London Interbank Offered Rate (“LIBOR”) for either the pay or receive leg of the swap agreement. February 29, 2016 May 31, 2015 (Dollars in thousands) Notional Amount Weighted- Average Rate Paid Weighted- Average Rate Received Notional Weighted- Weighted- Pay-fixed swaps $ 6,731,641 2.95 % 0.61 % $ 5,776,533 3.15 % 0.28 % Receive-fixed swaps 3,499,000 1.01 2.82 3,849,000 0.79 3.09 Total interest rate swaps $ 10,230,641 2.29 1.36 $ 9,625,533 2.21 1.40 In addition to the notional amount of swaps shown in the chart above, we have $40 million notional amount of forward starting swaps with an effective date of June 30, 2016. As of February 29, 2016 , the $40 million notional amount of forward starting swaps had a related fair value recorded on our condensed consolidated balance sheet. Because these swaps were not effective as of February 29, 2016 , there have been no accrued cash settlement amounts as of this date. Impact of Derivatives on Condensed Consolidated Balance Sheets The following table displays the fair value of the derivative assets and derivative liabilities recorded on our condensed consolidated balance sheets and the related outstanding notional amount of our interest rate swaps as of February 29, 2016 and May 31, 2015 . February 29, 2016 May 31, 2015 (Dollars in thousands) Fair Value Notional Balance Fair Value Notional Balance Derivative assets $ 104,535 $ 3,499,000 $ 115,276 $ 3,448,615 Derivative liabilities (688,998 ) 6,731,641 (408,382 ) 6,176,918 Total $ (584,463 ) $ 10,230,641 $ (293,106 ) $ 9,625,533 All of our master swap agreements include legally enforceable netting provisions that allow for offsetting of all contracts with a given counterparty in the event of default by one of the two parties. However, as indicated above, we report derivative asset and liability amounts on a gross basis based on individual contracts. The following table presents the gross fair value of derivative assets and liabilities reported on our condensed consolidated balance sheets as of February 29, 2016 and May 31, 2015 , and provides information on the impact of netting provisions and collateral pledged. February 29, 2016 Gross Amount of Recognized Assets/ Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Assets/ Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (Dollars in thousands) Financial Instruments Cash Collateral Pledged Net Amount Derivative assets: Interest rate swaps $ 104,535 $ — $ 104,535 $ 104,535 $ — $ — Derivative liabilities: Interest rate swaps 688,998 — 688,998 104,535 — 584,463 May 31, 2015 Gross Amount of Recognized Assets/ Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Assets/ Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (Dollars in thousands) Financial Instruments Cash Collateral Pledged Net Amount Derivative assets: Interest rate swaps $ 115,276 $ — $ 115,276 $ 115,276 $ — $ — Derivative liabilities: Interest rate swaps 408,382 — 408,382 115,276 — 293,106 Impact of Derivatives on Condensed Consolidated Statements of Operations Derivative gains (losses) reported in our condensed consolidated statements of operations consist of derivative cash settlements and derivative forward value. Derivative cash settlements represent net contractual interest expense accruals on interest rate swaps during the period. The derivative forward value represents the change in fair value of our interest rate swaps during the reporting period due to changes in the estimate of future interest rates over the remaining life of our derivative contracts. The following table presents the components of the derivative gains (losses) reported in our condensed consolidated statements of operations for our interest rate swaps for the three and nine months ended February 29, 2016 and February 28, 2015 . Three Months Ended Nine Months Ended (Dollars in thousands) February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Derivative cash settlements $ (22,556 ) $ (21,512 ) $ (65,285 ) $ (63,377 ) Derivative forward value (220,480 ) (77,258 ) (290,952 ) (159,832 ) Derivative losses $ (243,036 ) $ (98,770 ) $ (356,237 ) $ (223,209 ) Credit-Risk-Related Contingent Features Our derivative contracts typically contain mutual credit rating downgrade provisions, referred to as rating triggers. Under the mutual rating trigger provisions, a counterparty may, but is not obligated to, terminate and settle the agreement if the credit rating of the other counterparty falls to a level specified in the agreement. Our senior unsecured credit ratings from Moody’s and S&P were A2 and A, respectively, as of February 29, 2016 . Moody’s had our ratings on stable outlook as of February 29, 2016 , while S&P had our ratings on negative outlook as of February 29, 2016 . The table below displays the notional amounts of our derivative contracts with rating triggers as of February 29, 2016 and the payments that would be required if the contracts were terminated as of that date because of a downgrade of our unsecured credit ratings or the counterparty’s unsecured credit ratings below A3/A-, below Baa1/BBB+, to or below Baa2/BBB, below Baa3/BBB-, or to or below Ba2/BB+ by Moody’s or S&P, respectively. In calculating the payment amounts that would be required upon termination of the derivative contracts, we assumed that the amounts for each counterparty would be netted in accordance with the provisions of the master netting agreements for each counterparty. The net payment amounts are based on the fair value of the underlying derivative instrument, excluding the credit risk valuation adjustment, plus any unpaid accrued interest amounts. (Dollars in thousands) Notional Amount Payable Due From CFC Receivable Due to CFC Net (Payable)/Receivable Impact of mutual rating downgrade trigger: Falls below A3/A- (1) $ 63,295 $ (19,794 ) $ — $ (19,794 ) Falls below Baa1/BBB+ 6,556,100 (348,858 ) — (348,858 ) Falls to or below Baa2/BBB (2) 162,325 (3,955 ) — (3,955 ) Falls below Baa3/BBB- 400,000 (31,606 ) — (31,606 ) Total $ 7,181,720 $ (404,213 ) $ — $ (404,213 ) ____________________________ (1) Rating trigger for CFC falls below A3/A-, while rating trigger for counterparty falls below Baa1/BBB+ by Moody’s or S&P, respectively. (2) Rating trigger for CFC falls to or below Baa2/BBB, while rating trigger for counterparty falls to or below Ba2/BB+ by Moody’s or S&P, respectively. The aggregate amount, including the credit risk valuation adjustment, of all interest rate swaps with rating triggers that were in a net liability position was $412 million as of February 29, 2016 . There were no interest rate swaps with rating triggers that were in a net asset position as of February 29, 2016 .

Equity

Equity	9 Months Ended
	Feb. 29, 2016
Stockholders' Equity Note [Abstract]
Equity	NOTE 9—EQUITY Total equity decreased by $195 million during the nine months ended February 29, 2016 to $716 million as of February 29, 2016 . The decrease in total equity was primarily attributable to our net loss of $156 million for the period and patronage capital retirement of $39 million . In July 2015, the CFC Board of Directors authorized the allocation of the fiscal year 2015 net earnings as follows: $1 million to the Cooperative Educational Fund, $16 million to the members’ capital reserve and $78 million to members in the form of patronage. In July 2015, the CFC Board of Directors authorized the retirement of allocated net earnings totaling $39 million , representing 50% of the fiscal year 2015 allocation. This amount was returned to members in cash in September 2015. Future allocations and retirements of net earnings may be made annually as determined by the CFC Board of Directors with due regard for its financial condition. The CFC Board of Directors has the authority to change the current practice for allocating and retiring net earnings at any time, subject to applicable laws and regulations. Equity includes the following components as of February 29, 2016 and May 31, 2015 . (Dollars in thousands) February 29, 2016 May 31, 2015 Membership fees $ 972 $ 976 Educational fund 1,123 1,767 Total membership fees and educational fund 2,095 2,743 Patronage capital allocated 629,596 668,980 Members' capital reserve 501,302 501,731 Unallocated net income (loss) (1) 129,999 (6,135 ) Total members equity (1) 1,262,992 1,167,319 Prior years cumulative derivative forward value adjustments (287,077 ) (172,412 ) Current year derivative forward value loss (2) (289,498 ) (114,665 ) Cumulative derivative forward value adjustments (576,575 ) (287,077 ) CFC retained equity 686,417 880,242 Accumulated other comprehensive income 4,114 4,080 Total CFC equity 690,531 884,322 Noncontrolling interests 25,965 27,464 Total equity $ 716,496 $ 911,786 ____________________________ (1) Excludes derivative forward value. (2) Represents the derivative forward value income (loss) recorded by CFC for the year-to-date period. Accumulated Other Comprehensive Income The activity in the accumulated other comprehensive income account is summarized below by component as of and for the three and nine months ended February 29, 2016 and February 28, 2015 . Three Months Ended February 29, 2016 (Dollars in thousands) Unrealized Gains (Losses) AFS Securities Unrealized Gains Unrealized Losses Foreclosed Assets Unrealized Losses Defined Benefit Plan Total Beginning balance $ 6,820 $ 4,902 $ (4,248 ) $ (889 ) $ 6,585 Unrealized losses (2,297 ) — — — (2,297 ) Losses reclassified into earnings — — — 43 43 Gains reclassified into earnings — (217 ) — — (217 ) Other comprehensive income (loss) (2,297 ) (217 ) — 43 (2,471 ) Ending balance $ 4,523 $ 4,685 $ (4,248 ) $ (846 ) $ 4,114 Three Months Ended February 28, 2015 (Dollars in thousands) Unrealized Gains (Losses) AFS Securities Unrealized Gains Derivatives Unrealized Losses Foreclosed Assets Unrealized Losses Defined Benefit Plan Total Beginning balance $ 3,241 $ 5,842 $ (2,310 ) $ — $ 6,773 Unrealized gains 1,644 — — — 1,644 Unrealized losses — — — (1,091 ) (1,091 ) Losses reclassified into earnings — — — 29 29 Gains reclassified into earnings — (236 ) — — (236 ) Other comprehensive income 1,644 (236 ) — (1,062 ) 346 Ending balance $ 4,885 $ 5,606 $ (2,310 ) $ (1,062 ) $ 7,119 Nine Months Ended February 29, 2016 (Dollars in thousands) Unrealized Gains (Losses) AFS Securities Unrealized Gains Derivatives Unrealized Losses Foreclosed Assets Unrealized Losses Defined Benefit Plan Total Beginning balance $ 3,934 $ 5,371 $ (4,248 ) $ (977 ) $ 4,080 Unrealized gains 589 — — — 589 Losses reclassified into earnings — — — 131 131 Gains reclassified into earnings — (686 ) — — (686 ) Other comprehensive income 589 (686 ) — 131 34 Ending balance $ 4,523 $ 4,685 $ (4,248 ) $ (846 ) $ 4,114 Nine Months Ended February 28, 2015 (Dollars in thousands) Unrealized Gains (Losses) AFS Securities Unrealized Gains Derivatives Unrealized Losses Foreclosed Assets Unrealized Losses Defined Benefit Plan Total Beginning balance $ (361 ) $ 6,320 $ (2,310 ) $ — $ 3,649 Unrealized gains 5,246 — — — 5,246 Unrealized losses — — — (1,091 ) (1,091 ) Losses reclassified into earnings — — — 29 29 Gains reclassified into earnings — (714 ) — — (714 ) Other comprehensive income 5,246 (714 ) — (1,062 ) 3,470 Ending balance $ 4,885 $ 5,606 $ (2,310 ) $ (1,062 ) $ 7,119

Guarantees

Guarantees	9 Months Ended
	Feb. 29, 2016
Guarantees [Abstract]
Guarantees	NOTE 10—GUARANTEES The following table summarizes total guarantees by type of guarantee and member class as of February 29, 2016 and May 31, 2015 . (Dollars in thousands) February 29, 2016 May 31, 2015 Total by type: Long-term tax-exempt bonds $ 476,860 $ 489,520 Letters of credit 324,710 382,233 Other guarantees 113,789 114,747 Total $ 915,359 $ 986,500 Total by member class: CFC: Distribution $ 132,391 $ 172,104 Power supply 745,640 763,746 Statewide and associate 17,085 17,025 CFC total 895,116 952,875 RTFC 1,574 1,574 NCSC 18,669 32,051 Total $ 915,359 $ 986,500 The maturities for the long-term tax-exempt bonds and the related guarantees run through calendar year 2042. Amounts in the table represent the outstanding principal amount of the guaranteed bonds. As of February 29, 2016 , our maximum potential exposure for the $70 million of fixed-rate tax-exempt bonds is $99 million , representing principal and interest. Of the amounts shown in the table above for long-term tax-exempt bonds, $407 million and $418 million as of February 29, 2016 and May 31, 2015 , respectively, are adjustable or floating-rate bonds that may be converted to a fixed rate as specified in the applicable indenture for each bond offering. We are unable to determine the maximum amount of interest that we could be required to pay related to the remaining adjustable and floating-rate bonds. Many of these bonds have a call provision that in the event of a default allow us to trigger the call provision. This would limit our exposure to future interest payments on these bonds. Our maximum potential exposure is secured by mortgage liens on all of the systems' assets and future revenue. If a system's debt is accelerated because of a determination that the interest thereon is not tax-exempt, the system’s obligation to reimburse us for any guarantee payments will be treated as a long-term loan. The maturities for letters of credit run through calendar year 2024. The amounts shown in the table above represent our maximum potential exposure, of which $119 million is secured as of February 29, 2016 . As of February 29, 2016 and May 31, 2015 , the letters of credit include $76 million to provide the standby liquidity for adjustable and floating-rate tax-exempt bonds issued for the benefit of our members, respectively. Security provisions include a mortgage lien on substantially all of the system’s assets, future revenue and the system’s investment in our commercial paper. In addition to the letters of credit listed in the table above, under master letter of credit facilities in place as of February 29, 2016 , we may be required to issue up to an additional $85 million in letters of credit to third parties for the benefit of our members. As of February 29, 2016 , all of our master letter of credit facilities were subject to material adverse change clauses at the time of issuance. Prior to issuing a letter of credit, we would confirm that there has been no material adverse change in the business or condition, financial or otherwise, of the borrower since the time the loan was approved and confirm that the borrower is currently in compliance with the letter of credit terms and conditions. The maturities for other guarantees listed in the table run through calendar year 2025. The maximum potential exposure for these other guarantees is $115 million , all of which is unsecured. As of February 29, 2016 and May 31, 2015 , we had $320 million and $434 million of guarantees, respectively, representing 35% and 44% , respectively, of total guarantees, under which our right of recovery from our members was not secured. In addition to the guarantees described above, as of February 29, 2016 , we were the liquidity provider for a total of $483 million of variable-rate tax-exempt bonds issued for our member cooperatives. While the bonds are in variable-rate mode, in return for a fee, we have unconditionally agreed to purchase bonds tendered or put for redemption if the remarketing agents are unable to sell such bonds to other investors. During the nine months ended February 29, 2016 , we were not required to perform as liquidity provider pursuant to these obligations. Guarantee Liability As of February 29, 2016 and May 31, 2015 , we recorded a guarantee liability of $18 million and $20 million respectively, which represents the contingent and non-contingent exposures related to guarantees and liquidity obligations. The contingent guarantee liability as of February 29, 2016 and May 31, 2015 was $1 million based on management’s estimate of exposure to losses within the guarantee portfolio. The remaining balance of the total guarantee liability of $17 million and $19 million as of February 29, 2016 and May 31, 2015 , respectively, relates to our non-contingent obligation to stand ready to perform over the term of our guarantees and liquidity obligations that we have entered into or modified since January 1, 2003.

Fair Value Measurement

Fair Value Measurement	9 Months Ended
	Feb. 29, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurement	NOTE 11—FAIR VALUE MEASUREMENTS We use fair value measurements to record fair value adjustments for certain assets and liabilities and to determine fair value disclosures. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (also referred to as an exit price). Assets and liabilities accounted for and reported at fair value in our consolidated financial statements on a recurring basis each reporting period include our available-for-sale investment securities and derivative instruments. Assets that are not measured at fair value each reporting period but are subject to fair value measurements on a nonrecurring basis in certain circumstances include impaired loans and long-lived assets classified as held for sale. The adjustments related to assets measured at fair value on a nonrecurring basis usually result from the application of lower-of-cost-market accounting or impairment of individual assets. Fair Value Hierarchy The fair value accounting guidance provides a three-level fair value hierarchy for classifying financial instruments. This hierarchy is based on the markets in which the assets or liabilities trade and whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. Fair value measurement of a financial asset or liability is assigned a level based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are summarized below: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2: Observable market-based inputs, other than quoted prices in active markets for identical assets or liabilities Level 3: Unobservable inputs For additional information regarding the fair value hierarchy and a description of the methodologies we use to measure fair value, see “Note 13—Fair Value Measurements” and “Note 14—Fair Value of Financial Instruments” to the Consolidated Financial Statements in our 2015 Form 10-K. Recurring Fair Value Measurements The table below presents the carrying value and fair value of financial instruments reported in our condensed consolidated financial statements at fair value on a recurring basis as of February 29, 2016 and May 31, 2015 , and the classification level of the fair value methodology within the fair value measurement hierarchy. February 29, 2016 May 31, 2015 (Dollars in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Investment securities, available for sale $ 85,061 $ — $ 85,061 $ 84,472 $ — $ 84,472 Deferred compensation investments 3,953 — 3,953 4,294 — 4,294 Derivative assets — 104,535 104,535 — 115,276 115,276 Derivative liabilities — 688,998 688,998 — 408,382 408,382 Transfers Between Levels We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy and transfer between Level 1, Level 2, and Level 3 accordingly. Observable market data includes but is not limited to quoted prices and market transactions. Changes in economic conditions or market liquidity generally will drive changes in availability of observable market data. Changes in availability of observable market data, which also may result in changing the valuation technique used, are generally the cause of transfers between levels. We did not have any transfers between levels for financial instruments measured at fair value on a recurring basis for the nine months ended February 29, 2016 and February 28, 2015 . Nonrecurring Fair Value The table below presents the carrying value and fair value of assets reported in our condensed consolidated financial statements at fair value on a nonrecurring basis as of February 29, 2016 and May 31, 2015 , and unrealized losses for the three and nine months ended February 29, 2016 and February 28, 2015 . Level 3 Fair Value Unrealized Losses Three Months Ended, Unrealized Losses Nine Months Ended, (Dollars in thousands) February 29, 2016 May 31, 2015 February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Impaired loans, net of specific reserves (1) $ 8,527 $ — $ (1,890 ) $ — $ (3,901 ) $ (943 ) ____________________________ (1) Excludes impaired loans for which there is no specific allowance recorded. Significant Unobservable Level 3 Inputs Impaired Loans We utilize the fair value of the collateral underlying the loan or the estimated cash flows to determine the fair value and specific allowance for impaired loans. In estimating the fair value of the collateral, we may use third-party valuation specialists, internal estimates or a combination of both. The valuation technique used to determine fair value of the impaired loans provided by both our internal staff and third-party specialists includes market multiples (i.e., comparable companies). The significant unobservable inputs used in the determination of fair value for individually impaired loans is a multiple of earnings before interest, taxes, depreciation and amortization based on various factors (i.e., financial condition of the borrower). The significant unobservable inputs for estimating the fair value of impaired collateral-dependent loans are reviewed by our Credit Risk Management group to assess the reasonableness of the assumptions used and the accuracy of the work performed. In cases where we rely on third-party inputs, we use the final unadjusted third-party valuation analysis as support for any adjustments to our consolidated financial statements and disclosures. Because of the limited amount of impaired loans as of February 29, 2016 and May 31, 2015 , we do not believe that potential changes in the significant unobservable inputs used in the determination of the fair value for impaired loans will have a material impact on the fair value measurement of these assets or our results of operations.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Feb. 29, 2016
Fair Value of Financial Instruments
Fair Value of Financial Instruments	NOTE 12—FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the carrying value and fair value, and the classification level within the fair value measurement hierarchy, of our financial instruments as of February 29, 2016 and May 31, 2015 . February 29, 2016 Fair Value Measurements Using (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 299,024 $ 299,024 $ 299,024 $ — $ — Restricted cash 4,268 4,268 4,268 — — Time deposits 340,000 340,000 — 340,000 — Investment securities, available for sale 85,061 85,061 85,061 — — Deferred compensation investments 3,953 3,953 3,953 — — Loans to members, net 23,106,181 23,424,554 — — 23,424,554 Accrued interest and other receivables 179,212 179,212 179,212 — — Debt service reserve funds 17,151 17,151 17,151 — — Derivative assets 104,535 104,535 — 104,535 — Liabilities: Short-term debt 3,309,020 3,308,517 1,499,503 1,809,014 — Long-term debt 17,527,497 18,611,196 — 11,311,512 7,299,684 Accrued interest payable 185,758 185,758 185,758 — — Guarantee liability 18,155 20,144 — — 20,144 Derivative liabilities 688,998 688,998 — 688,998 — Subordinated deferrable debt 395,754 389,220 — 389,220 — Members’ subordinated certificates 1,444,515 1,444,539 — — 1,444,539 May 31, 2015 Fair Value Measurements Using (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 248,836 $ 248,836 $ 248,836 $ — $ — Restricted cash 485 485 485 — — Time deposits 485,000 485,000 — 485,000 — Investment securities, available for sale 84,472 84,472 84,472 — — Deferred compensation investments 4,294 4,294 4,294 — — Loans to members, net 21,435,327 21,961,048 — — 21,961,048 Accrued interest and other receivables 197,828 197,828 197,828 — — Debt service reserve funds 25,602 25,602 25,602 — — Derivative instruments 115,276 115,276 — 115,276 — Liabilities: Short-term debt 3,127,754 3,127,541 1,494,131 1,633,410 — Long-term debt 16,244,794 17,356,223 — 10,878,302 6,477,921 Accrued interest payable 123,697 123,697 123,697 — — Guarantee liability 19,917 22,545 — — 22,545 Derivative instruments 408,382 408,382 — 408,382 — Subordinated deferrable debt 395,699 406,000 — 406,000 — Members’ subordinated certificates 1,505,420 1,505,444 — — 1,505,444 We consider observable prices in the principal market in our valuations where possible. Fair value estimates were developed at the reporting date and may not necessarily be indicative of amounts that could ultimately be realized in a market transaction at a future date. For additional information regarding the fair value hierarchy and a description of the methodologies we use to measure fair value, see “Note 13—Fair Value Measurements” and “Note 14—Fair Value of Financial Instruments” to the Consolidated Financial Statements in our 2015 Form 10-K. See “Note 11—Fair Value Measurement ” for additional information on assets and liabilities reported at fair value on a recurring and nonrecurring basis on our condensed consolidated balance sheets.

Segment Information

Segment Information	9 Months Ended
	Feb. 29, 2016
Segment Reporting [Abstract]
Segment Information	NOTE 13—SEGMENT INFORMATION The following tables display segment results for the three and nine months ended February 29, 2016 and February 28, 2015 , and assets attributable to each segment as of February 29, 2016 and February 28, 2015 . Three Months Ended February 29, 2016 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of operations: Interest income $ 250,814 $ 11,367 $ (8,548 ) $ 253,633 Interest expense (170,872 ) (8,865 ) 8,548 (171,189 ) Net interest income 79,942 2,502 — 82,444 Provision for loan losses 1,735 — — 1,735 Net interest income after provision for loan losses 81,677 2,502 — 84,179 Non-interest income: Fee and other income 5,341 984 (721 ) 5,604 Derivative losses (240,363 ) (2,673 ) — (243,036 ) Results of operations of foreclosed assets 1,472 — — 1,472 Total non-interest income (233,550 ) (1,689 ) (721 ) (235,960 ) Non-interest expense: General and administrative expenses (20,266 ) (2,341 ) 255 (22,352 ) Losses on early extinguishment of debt (333 ) — — (333 ) Other (509 ) (466 ) 466 (509 ) Total non-interest expense (21,108 ) (2,807 ) 721 (23,194 ) Loss before income taxes (172,981 ) (1,994 ) — (174,975 ) Income tax benefit — 593 — 593 Net loss $ (172,981 ) $ (1,401 ) $ — $ (174,382 ) Three Months Ended February 28, 2015 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of operations: Interest income $ 235,616 $ 11,791 $ (8,667 ) $ 238,740 Interest expense (156,489 ) (9,028 ) 8,667 (156,850 ) Net interest income 79,127 2,763 — 81,890 Provision for loan losses (2,304 ) — — (2,304 ) Net interest income after provision for loan losses 76,823 2,763 — 79,586 Non-interest income: Fee and other income 4,928 922 (830 ) 5,020 Derivative losses (97,424 ) (1,346 ) — (98,770 ) Results of operations from foreclosed assets (1,369 ) — — (1,369 ) Total non-interest income (93,865 ) (424 ) (830 ) (95,119 ) Non-interest expense: General and administrative expenses (16,227 ) (2,024 ) 243 (18,008 ) Losses on early extinguishment of debt (703 ) — — (703 ) Other (7 ) (587 ) 587 (7 ) Total non-interest expense (16,937 ) (2,611 ) 830 (18,718 ) Loss before income taxes (33,979 ) (272 ) — (34,251 ) Income tax benefit — 55 — 55 Net loss $ (33,979 ) $ (217 ) $ — $ (34,196 ) Nine Months Ended February 29, 2016 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of operations: Interest income $ 747,490 $ 34,693 $ (26,109 ) $ 756,074 Interest expense (503,061 ) (27,061 ) 26,109 (504,013 ) Net interest income 244,429 7,632 — 252,061 Provision for loan losses (4,067 ) — — (4,067 ) Net interest income after provision for loan losses 240,362 7,632 — 247,994 Non-interest income: Fee and other income 16,020 3,898 (2,582 ) 17,336 Derivative losses (352,153 ) (4,084 ) — (356,237 ) Results of operations of foreclosed assets 1,605 — — 1,605 Total non-interest income (334,528 ) (186 ) (2,582 ) (337,296 ) Non-interest expense: General and administrative expenses (58,419 ) (7,762 ) 763 (65,418 ) Losses on early extinguishment of debt (333 ) — — (333 ) Other (875 ) (1,819 ) 1,819 (875 ) Total non-interest expense (59,627 ) (9,581 ) 2,582 (66,626 ) Loss before income taxes (153,793 ) (2,135 ) — (155,928 ) Income tax benefit — 153 — 153 Net loss $ (153,793 ) $ (1,982 ) $ — $ (155,775 ) February 29, 2016 (Dollars in thousands) CFC Other Elimination Consolidated Total Assets: Total loans outstanding $ 23,095,053 $ 1,055,203 $ (1,016,041 ) $ 23,134,215 Deferred loan origination costs 9,884 — — 9,884 Less: Allowance for loan losses (37,918 ) — — (37,918 ) Loans to members, net 23,067,019 1,055,203 (1,016,041 ) 23,106,181 Other assets 1,270,625 120,001 (103,782 ) 1,286,844 Total assets $ 24,337,644 $ 1,175,204 $ (1,119,823 ) $ 24,393,025 Nine Months Ended February 28, 2015 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of operations: Interest income $ 701,924 $ 34,926 $ (25,584 ) $ 711,266 Interest expense (470,635 ) (26,626 ) 25,584 (471,677 ) Net interest income 231,289 8,300 — 239,589 Provision for loan losses 3,475 — — 3,475 Net interest income after provision for loan losses 234,764 8,300 — 243,064 Non-interest income: Fee and other income 18,800 2,653 (2,204 ) 19,249 Derivative losses (219,656 ) (3,553 ) — (223,209 ) Results of operations from foreclosed assets (33,059 ) — — (33,059 ) Total non-interest income (233,915 ) (900 ) (2,204 ) (237,019 ) Non-interest expense: General and administrative expenses (49,479 ) (6,039 ) 730 (54,788 ) Losses on early extinguishment of debt (703 ) (703 ) Other 50 (1,474 ) 1,474 50 Total non-interest expense (50,132 ) (7,513 ) 2,204 (55,441 ) Loss before income taxes (49,283 ) (113 ) — (49,396 ) Income tax expense — (100 ) — (100 ) Net loss $ (49,283 ) $ (213 ) $ — $ (49,496 ) February 28, 2015 (Dollars in thousands) CFC Other Elimination Consolidated Total Assets: Total loans outstanding $ 21,187,603 $ 1,117,252 $ (1,102,456 ) $ 21,202,399 Deferred loan origination costs 9,693 — — 9,693 Less: Allowance for loan losses (53,114 ) — — (53,114 ) Loans to members, net 21,144,182 1,117,252 (1,102,456 ) 21,158,978 Other assets 1,448,655 157,122 (115,834 ) 1,489,943 Total assets $ 22,592,837 $ 1,274,374 $ (1,218,290 ) $ 22,648,921

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Feb. 29, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company	The Company National Rural Utilities Cooperative Finance Corporation (“CFC”) is a member-owned cooperative association incorporated under the laws of the District of Columbia in April 1969. CFC’s principal purpose is to provide its members with financing to supplement the loan programs of the Rural Utilities Service (“RUS”) of the United States Department of Agriculture (“USDA”). CFC makes loans to its rural electric members so they can acquire, construct and operate electric distribution, generation, transmission and related facilities. CFC also provides its members with credit enhancements in the form of letters of credit and guarantees of debt obligations. As a cooperative, CFC is owned by and exclusively serves its membership, which consists of not-for-profit entities or subsidiaries or affiliates of not-for-profit entities. CFC is exempt from federal income taxes.
Basis of Presentation	Basis of Presentation and Use of Estimates The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Certain prior period amounts have been reclassified to conform to the current period presentation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and related disclosures.
Use of Estimates	These estimates are based on information available as of the date of the consolidated financial statements. While management makes its best judgment, actual amounts or results could differ from these estimates. In the opinion of management, all normal, recurring adjustments have been included for a fair presentation of this interim financial information. The results of operations in the interim financial statements are not necessarily indicative of the results that may be expected for the full year. These interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, and related notes thereto, included in CFC’s Annual Report on Form 10-K for the fiscal year ended May 31, 2015 (“2015 Form 10-K”).
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of CFC, Rural Telephone Finance Cooperative (“RTFC”), National Cooperative Services Corporation (“NCSC”) and subsidiaries created and controlled by CFC to hold foreclosed assets. All intercompany balances and transactions have been eliminated. RTFC was established to provide private financing for the rural telecommunications industry. NCSC may provide financing to members of CFC, government or quasi-government entities which own electric utility systems that meet the Rural Electrification Act definition of “rural”, and the for-profit and nonprofit entities that are owned, operated or controlled by, or provide significant benefits to certain members of CFC. CFC currently has one entity, Caribbean Asset Holdings, LLC (“CAH”), that holds foreclosed assets. CAH, which is classified as held for sale, is a holding company for various U.S. Virgin Islands, British Virgin Islands and St. Maarten-based telecommunications operating entities that were transferred to CAH as a result of a loan default by a borrower and subsequent bankruptcy proceedings. Unless stated otherwise, references to “we,” “our” or “us” relate to CFC and its consolidated entities.
Variable Interest Entities	Variable Interest Entities Based on the accounting standards governing consolidations, equity and earnings of RTFC and NCSC are reported as noncontrolling interest. CFC manages the lending activities of RTFC and NCSC. We are required to consolidate the financial results of RTFC and NCSC because CFC is the primary beneficiary of variable interests in RTFC and NCSC due to its exposure to absorbing the majority of their expected losses. Under separate guarantee agreements, RTFC and NCSC pay CFC a fee to indemnify them against loan losses. CFC is the sole lender to and manages the business operations of RTFC through a management agreement in effect until December 1, 2016, which is automatically renewed for one-year terms thereafter unless terminated by either party. CFC is the primary source of funding to, and manages the lending activities of, NCSC through a management agreement that is automatically renewable on an annual basis unless terminated by either party. NCSC funds its lending programs through loans from CFC or debt guaranteed by CFC. In connection with these guarantees, NCSC must pay a guarantee fee. RTFC and NCSC creditors have no recourse against CFC in the event of a default by RTFC and NCSC, unless there is a guarantee agreement under which CFC has guaranteed NCSC or RTFC debt obligations to a third party. CFC had guaranteed $49 million of NCSC debt, derivative instruments and guarantees with third parties, and CFC’s maximum potential exposure for these instruments totaled $53 million as of February 29, 2016 . The maturities for NCSC obligations guaranteed by CFC extend through 2032. Guarantees of NCSC debt and derivative instruments are not included in “Note 10—Guarantees” because the debt and derivatives are reported on the condensed consolidated balance sheets. CFC guaranteed $2 million of RTFC guarantees with third parties as of February 29, 2016 . The maturities for RTFC obligations guaranteed by CFC extend through 2017 and are renewed on an annual basis. All CFC loans to RTFC and NCSC are secured by all assets and revenue of RTFC and NCSC, respectively. RTFC had total assets of $464 million including loans outstanding to members of $358 million , and NCSC had total assets of $711 million including loans outstanding of $697 million as of February 29, 2016 . CFC had committed to lend RTFC up to $4,000 million , of which $340 million was outstanding, as of February 29, 2016 . CFC had committed to provide up to $3,000 million of credit to NCSC, of which $725 million was outstanding, representing $676 million of outstanding loans and $49 million of credit enhancements as of February 29, 2016 .
Recently Issued but Not Yet Adopted Accounting Standards	Accounting Standards Adopted in Fiscal Year 2016 Simplifying the Presentation of Debt Issuance Costs In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, Simplifying the Presentation of Debt Issuance Costs , which amends the current presentation of debt issuance costs in the financial statements by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as an asset in the balance sheet. The guidance, which does not affect the recognition and measurement requirements for debt issuance costs, is effective for the first quarter of fiscal year 2017. However, we early-adopted this guidance in the first quarter of fiscal year 2016, and applied its provisions retrospectively, which resulted in the reclassification of unamortized debt issuance costs of $47 million as of May 31, 2015, from total assets on our condensed consolidated balance sheet to total debt outstanding. We previously presented debt issuance costs as a separate line item under total assets on our condensed consolidated balance sheets. Other than this reclassification, the adoption of the guidance did not impact our consolidated financial statements. Recently Issued but Not Yet Adopted Accounting Standards Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, which changes how entities measure certain equity investments and present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. Under the new guidance, entities will be required to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. For financial liabilities measured using the fair value option, entities will be required to record changes in fair value caused by a change in instrument-specific credit risk (own credit risk) separately in other comprehensive income. The accounting for other financial instruments, such as loans and investments in debt securities is largely unchanged. The classification and measurement guidance is effective for public entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This update will be effective in the first quarter of fiscal year 2019. We are in the process of evaluating the impact of this update on our consolidated financial statements. Amendments to the Consolidation Analysis In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis , which is intended to improve upon and simplify the consolidation assessment required to evaluate whether organizations should consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures. This update is effective in the first quarter of fiscal year 2017. We do not expect the adoption of the update to have a material impact on our consolidated financial statements. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which clarifies the principles for recognizing revenue from contracts with customers and will replace most existing revenue recognition in GAAP when it becomes effective. In July 2015, the FASB approved a one year deferral of the effective date of this standard, with a revised effective date for fiscal years beginning after December 15, 2017. Early adoption is permitted, although not prior to fiscal years beginning after December 15, 2016. The new accounting guidance, which does not apply to financial instruments, is effective beginning in the first quarter of fiscal year 2018. We do not expect the new guidance to have a material impact on our consolidated financial statements, as CFC’s primary business and source of revenue is from lending.
Derivatives	Use of Derivatives We are an end user of derivative financial instruments and do not engage in derivative trading. We use derivatives, primarily interest rate swaps and treasury rate locks, to manage interest rate risk. Derivatives may be privately negotiated contracts, which are often referred to as over-the-counter (“OTC”) derivatives, or they may be listed and traded on an exchange. We generally engage in OTC derivative transactions. Accounting for Derivatives In accordance with the accounting standards for derivatives and hedging activities, we record derivative instruments at fair value as either a derivative asset or derivative liability on our condensed consolidated balance sheets. We report derivative asset and liability amounts on a gross basis based on individual contracts, which does not take into consideration the effects of master netting agreements or collateral netting. Derivatives in a gain position are reported as derivative assets on our condensed consolidated balance sheets, while derivatives in a loss position are reported as derivative liabilities. Accrued interest related to derivatives is reported on our condensed consolidated balance sheets as a component of either accrued interest and other receivables or accrued interest payable. If we do not elect hedge accounting treatment, changes in the fair value of derivative instruments, which consist of net accrued periodic derivative cash settlements and derivative forward value amounts, are recognized in our consolidated statements of operations under derivative gains (losses). If we elect hedge accounting treatment for derivatives, we formally document, designate and assess the effectiveness of the hedge relationship. Changes in the fair value of derivatives designated as qualifying fair value hedges are recorded in earnings together with offsetting changes in the fair value of the hedged item and any related ineffectiveness. Changes in the fair value of derivatives designated as qualifying cash flow hedges are recorded as a component of other comprehensive income (“OCI”), to the extent that the hedge relationships are effective, and reclassified AOCI to earnings using the effective interest method over the term of the forecasted transaction. Any ineffectiveness in the hedging relationship is recognized as a component of derivative gains (losses) in our consolidated statement of operations. We generally do not designate interest rate swaps, which represent the substantial majority of our derivatives, for hedge accounting. Accordingly, changes in the fair value of interest rate swaps are reported in our consolidated statements of operations under derivative gains (losses). Net periodic cash settlements related to interest rate swaps are classified as an operating activity in our consolidated statements of cash flows. We typically designate treasury rate locks as cash flow hedges of forecasted debt issuances. Accordingly, changes in the fair value of the derivative instruments are recorded as a component of OCI and reclassified to interest expense when the forecasted transaction occurs using the effective interest method. Any ineffectiveness in the hedging relationship is recognized as a component of derivative gains (losses) in our consolidated statements of operations. We did not have any derivatives designated as accounting hedges as of February 29, 2016 and May 31, 2015 .
Fair value of assets and liabilities measured on recurring or nonrecurring basis	We use fair value measurements to record fair value adjustments for certain assets and liabilities and to determine fair value disclosures. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (also referred to as an exit price). Assets and liabilities accounted for and reported at fair value in our consolidated financial statements on a recurring basis each reporting period include our available-for-sale investment securities and derivative instruments. Assets that are not measured at fair value each reporting period but are subject to fair value measurements on a nonrecurring basis in certain circumstances include impaired loans and long-lived assets classified as held for sale. The adjustments related to assets measured at fair value on a nonrecurring basis usually result from the application of lower-of-cost-market accounting or impairment of individual assets. Fair Value Hierarchy The fair value accounting guidance provides a three-level fair value hierarchy for classifying financial instruments. This hierarchy is based on the markets in which the assets or liabilities trade and whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. Fair value measurement of a financial asset or liability is assigned a level based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are summarized below: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2: Observable market-based inputs, other than quoted prices in active markets for identical assets or liabilities Level 3: Unobservable inputs For additional information regarding the fair value hierarchy and a description of the methodologies we use to measure fair value, see “Note 13—Fair Value Measurements” and “Note 14—Fair Value of Financial Instruments” to the Consolidated Financial Statements in our 2015 Form 10-K. Recurring Fair Value Measurements The table below presents the carrying value and fair value of financial instruments reported in our condensed consolidated financial statements at fair value on a recurring basis as of February 29, 2016 and May 31, 2015 , and the classification level of the fair value methodology within the fair value measurement hierarchy. February 29, 2016 May 31, 2015 (Dollars in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Investment securities, available for sale $ 85,061 $ — $ 85,061 $ 84,472 $ — $ 84,472 Deferred compensation investments 3,953 — 3,953 4,294 — 4,294 Derivative assets — 104,535 104,535 — 115,276 115,276 Derivative liabilities — 688,998 688,998 — 408,382 408,382 Transfers Between Levels We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy and transfer between Level 1, Level 2, and Level 3 accordingly. Observable market data includes but is not limited to quoted prices and market transactions. Changes in economic conditions or market liquidity generally will drive changes in availability of observable market data. Changes in availability of observable market data, which also may result in changing the valuation technique used, are generally the cause of transfers between levels. We did not have any transfers between levels for financial instruments measured at fair value on a recurring basis for the nine months ended February 29, 2016 and February 28, 2015 . Nonrecurring Fair Value The table below presents the carrying value and fair value of assets reported in our condensed consolidated financial statements at fair value on a nonrecurring basis as of February 29, 2016 and May 31, 2015 , and unrealized losses for the three and nine months ended February 29, 2016 and February 28, 2015 . Level 3 Fair Value Unrealized Losses Three Months Ended, Unrealized Losses Nine Months Ended, (Dollars in thousands) February 29, 2016 May 31, 2015 February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Impaired loans, net of specific reserves (1) $ 8,527 $ — $ (1,890 ) $ — $ (3,901 ) $ (943 ) ____________________________ (1) Excludes impaired loans for which there is no specific allowance recorded. Significant Unobservable Level 3 Inputs Impaired Loans We utilize the fair value of the collateral underlying the loan or the estimated cash flows to determine the fair value and specific allowance for impaired loans. In estimating the fair value of the collateral, we may use third-party valuation specialists, internal estimates or a combination of both. The valuation technique used to determine fair value of the impaired loans provided by both our internal staff and third-party specialists includes market multiples (i.e., comparable companies). The significant unobservable inputs used in the determination of fair value for individually impaired loans is a multiple of earnings before interest, taxes, depreciation and amortization based on various factors (i.e., financial condition of the borrower). The significant unobservable inputs for estimating the fair value of impaired collateral-dependent loans are reviewed by our Credit Risk Management group to assess the reasonableness of the assumptions used and the accuracy of the work performed. In cases where we rely on third-party inputs, we use the final unadjusted third-party valuation analysis as support for any adjustments to our consolidated financial statements and disclosures. Because of the limited amount of impaired loans as of February 29, 2016 and May 31, 2015 , we do not believe that potential changes in the significant unobservable inputs used in the determination of the fair value for impaired loans will have a material impact on the fair value measurement of these assets or our results of operations.
Fair value of financial instruments	We consider observable prices in the principal market in our valuations where possible. Fair value estimates were developed at the reporting date and may not necessarily be indicative of amounts that could ultimately be realized in a market transaction at a future date. For additional information regarding the fair value hierarchy and a description of the methodologies we use to measure fair value, see “Note 13—Fair Value Measurements” and “Note 14—Fair Value of Financial Instruments” to the Consolidated Financial Statements in our 2015 Form 10-K. See “Note 11—Fair Value Measurement ” for additional information on assets and liabilities reported at fair value on a recurring and nonrecurring basis on our condensed consolidated balance sheets.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Feb. 29, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of components of interest income	Interest Income Interest income on loans is recognized using the effective interest method. The following table presents the components of interest income for the three and nine months ended February 29, 2016 and February 28, 2015 . Three Months Ended Nine Months Ended (Dollars in thousands) February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Interest on long-term fixed-rate loans (1) $ 240,933 $ 224,770 $ 716,736 $ 669,121 Interest on long-term variable-rate loans 5,077 4,836 14,919 15,099 Interest on line of credit loans 6,335 6,707 18,919 20,335 Interest on restructured loans 163 — 293 10 Interest on nonperforming loans 81 — 110 — Interest on investments 1,323 2,395 5,905 6,516 Fee income (2) (279 ) 32 (808 ) 185 Total interest income $ 253,633 $ 238,740 $ 756,074 $ 711,266 ____________________________ (1) Includes loan conversion fees, which are deferred and recognized in interest income using the effective interest method. Also includes a small portion of conversion fees, which are intended to cover the administrative costs related to the conversion and are recognized into income immediately at conversion. (2) Primarily related to amortization of loan origination costs and late payment fees. For the three and nine months ended February 29, 2016 , it excludes loan upfront and arranger fees, which are not based on interest rates and are included in the fee and other income line of the condensed consolidated statements of operations. Deferred income on the condensed consolidated balance sheets primarily consists of deferred loan conversion fees, which totaled $60 million and $70 million as of February 29, 2016 and May 31, 2015 , respectively.
Schedule of components of interest expense	Interest Expense The following table presents the components of interest expense for the three and nine months ended February 29, 2016 and February 28, 2015 . Three Months Ended Nine Months Ended (Dollars in thousands) February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Interest expense on debt: (1)(2)(3) Short-term debt $ 4,387 $ 2,982 $ 10,311 $ 11,786 Medium-term notes 21,773 17,774 62,745 52,640 Collateral trust bonds 83,810 79,026 248,410 232,290 Subordinated deferrable debt 4,785 4,782 14,356 14,352 Subordinated certificates 15,022 15,280 45,425 48,131 Long-term notes payable 41,412 37,006 122,766 112,478 Total interest expense $ 171,189 $ 156,850 $ 504,013 $ 471,677 ____________________________ (1) Represents interest expense and the amortization of discounts on debt. (2) Includes underwriter’s fees, legal fees, printing costs and certain accounting fees, which are deferred and recognized in interest expense using the effective interest method. Also includes issuance costs related to dealer commercial paper, which are recognized immediately as incurred. (3) Includes fees related to funding activities, including fees paid to banks participating in our revolving credit agreements. Amounts are recognized as incurred or amortized on a straight-line basis over the life of the agreement.

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Feb. 29, 2016
Investments [Abstract]
Schedule of investments in equity securities	The following tables present the amortized cost, gross unrealized gains and losses and fair value of our investment securities, all of which are classified as available for sale, as of February 29, 2016 and May 31, 2015 . February 29, 2016 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Farmer Mac—Series A Non-Cumulative Preferred Stock $ 30,000 $ 687 $ — $ 30,687 Farmer Mac—Series B Non-Cumulative Preferred Stock 25,000 1,920 — 26,920 Farmer Mac—Series C Non-Cumulative Preferred Stock 25,000 60 — 25,060 Farmer Mac—Class A Common Stock 538 1,856 — 2,394 Total available-for-sale investment securities $ 80,538 $ 4,523 $ — $ 85,061 May 31, 2015 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Farmer Mac—Series A Non-Cumulative Preferred Stock $ 30,000 $ 264 $ — $ 30,264 Farmer Mac—Series B Non-Cumulative Preferred Stock 25,000 1,250 — 26,250 Farmer Mac—Series C Non-Cumulative Preferred Stock 25,000 900 — 25,900 Farmer Mac—Class A Common Stock 538 1,520 — 2,058 Total available-for-sale investment securities $ 80,538 $ 3,934 $ — $ 84,472

Loans and Commitments (Tables)

Loans and Commitments (Tables)	9 Months Ended
	Feb. 29, 2016
Loans and Leases Receivable Disclosure [Abstract]
Summary of loans outstanding to members and unadvanced commitments by loan type and by member class	The table below presents the outstanding principal balance of loans to members, including deferred loan origination costs, and unadvanced loan commitments, by loan type and member class, as of February 29, 2016 and May 31, 2015 . February 29, 2016 May 31, 2015 (Dollars in thousands) Loans Outstanding Unadvanced Commitments (1) Loans Outstanding Unadvanced Commitments (1) Loan type: (2) Long-term fixed-rate loans $ 21,127,042 $ — $ 19,543,274 $ — Long-term variable-rate loans 718,193 4,402,860 698,495 4,835,623 Loans guaranteed by RUS 174,990 — 179,241 — Line of credit loans 1,113,990 8,909,560 1,038,210 9,294,127 Total loans outstanding (3) 23,134,215 13,312,420 21,459,220 14,129,750 Deferred loan origination costs 9,884 — 9,797 — Loans to members $ 23,144,099 $ 13,312,420 $ 21,469,017 $ 14,129,750 Member class: (2) CFC: Distribution $ 17,700,859 $ 9,045,185 $ 16,095,043 $ 9,474,568 Power supply 4,322,069 3,219,631 4,181,481 3,273,501 Statewide and associate 56,084 135,624 65,466 127,473 CFC total 22,079,012 12,400,440 20,341,990 12,875,542 RTFC 357,967 258,690 385,709 288,810 NCSC 697,236 653,290 731,521 965,398 Total loans outstanding (3) $ 23,134,215 $ 13,312,420 $ 21,459,220 $ 14,129,750 ____________________________ (1) The interest rate on unadvanced commitments is not set until drawn; therefore, the long-term unadvanced loan commitments have been classified in this table as variable-rate unadvanced commitments. However, at the time of the advance, the borrower may select a fixed or a variable rate on the new loan. (2) Includes nonperforming and restructured loans. (3) Represents the unpaid principal balance excluding deferred loan origination costs.
Summary of available balance under committed lines of credit and the related maturities by fiscal year	Unadvanced loan commitments totaled $2,457 million and $2,765 million as of February 29, 2016 and May 31, 2015 , respectively, related to committed lines of credit loans that are not subject to a material adverse change clause at the time of each loan advance. As such, we are required to advance amounts on these committed facilities as long as the borrower is in compliance with the terms and conditions of the facility. The following table summarizes the available balance under unconditional committed lines of credit, and the related maturities by fiscal year and thereafter, as of February 29, 2016 . Available Balance Notional Maturities of Unconditional Committed Lines of Credit (Dollars in thousands) 2016 2017 2018 2019 2020 Thereafter Committed lines of credit $2,457,435 $ 11,000 $125,377 $683,351 $673,109 $591,526 $373,072 The remaining unadvanced commitments totaling $10,855 million and $11,365 million as of February 29, 2016 and May 31, 2015 , respectively, were generally subject to material adverse change clauses. Prior to making an advance on these facilities, we confirm that there has been no material adverse change in the business or condition, financial or otherwise, of the borrower since the time the loan was approved and confirm that the borrower is currently in compliance with loan terms and conditions. In some cases, the borrower’s access to the full amount of the facility is further constrained by the designated purpose, imposition of borrower-specific restrictions or by additional conditions that must be met prior to advancing funds.
Schedule of available balance and maturities of lines of credit	The following table summarizes the available balance under unadvanced commitments as of February 29, 2016 and the related maturities by fiscal year and thereafter by loan type: Available Balance Notional Maturities of Unadvanced Commitments (Dollars in thousands) 2016 2017 2018 2019 2020 Thereafter Line of credit loans $ 8,909,560 $ 280,881 $ 5,200,892 $ 1,120,869 $ 909,795 $ 742,503 $ 654,620 Long-term loans 4,402,860 126,400 1,029,474 700,609 1,078,147 882,742 585,488 Total $ 13,312,420 $ 407,281 $ 6,230,366 $ 1,821,478 $ 1,987,942 $ 1,625,245 $ 1,240,108
Schedule of analysis of the age of the recorded investment in loans outstanding by member class	The tables below present the payment status of loans outstanding by member class as of February 29, 2016 and May 31, 2015 . February 29, 2016 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due (1) Total Past Due Total Financing Receivables Nonaccrual Loans CFC: Distribution $ 17,700,859 $ — $ — $ — $ 17,700,859 $ — Power supply 4,322,069 — — — 4,322,069 — Statewide and associate 56,084 — — — 56,084 — CFC total 22,079,012 — — — 22,079,012 — RTFC 354,461 — 3,506 3,506 357,967 5,864 NCSC 697,236 — — — 697,236 — Total loans outstanding $ 23,130,709 $ — $ 3,506 $ 3,506 $ 23,134,215 $ 5,864 As a % of total loans 99.98 % — % 0.02 % 0.02 % 100.00 % 0.03 % May 31, 2015 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due (1) Total Total Financing Nonaccrual Loans CFC: Distribution $ 16,095,043 $ — $ — $ — $ 16,095,043 $ 7,221 Power supply 4,181,481 — — — 4,181,481 — Statewide and associate 65,466 — — — 65,466 — CFC total 20,341,990 — — — 20,341,990 7,221 RTFC 385,709 — — — 385,709 4,221 NCSC 731,521 — — — 731,521 294 Total loans outstanding $ 21,459,220 $ — $ — $ — $ 21,459,220 $ 11,736 As a % of total loans 100.00 % — % — % — % 100.00 % 0.05 % ____________________________ (1) All loans 90 days or more past due are on nonaccrual status.
Schedule of loan portfolio by risk rating category and member class based on available data	The following table presents our loan portfolio by risk rating category and member class based on available data as of February 29, 2016 and May 31, 2015 . February 29, 2016 May 31, 2015 (Dollars in thousands) Pass Criticized Total Pass Criticized Total CFC: Distribution $ 17,667,879 $ 32,980 $ 17,700,859 $ 16,062,516 $ 32,527 $ 16,095,043 Power supply 4,322,069 — 4,322,069 4,181,481 — 4,181,481 Statewide and associate 55,827 257 56,084 65,200 266 65,466 CFC total 22,045,775 33,237 22,079,012 20,309,197 32,793 20,341,990 RTFC 344,886 13,081 357,967 373,087 12,622 385,709 NCSC 694,268 2,968 697,236 727,159 4,362 731,521 Total loans outstanding $ 23,084,929 $ 49,286 $ 23,134,215 $ 21,409,443 $ 49,777 $ 21,459,220
Summary of the activity in the loan loss allowance reflecting disaggregation by company of the allowance for loan losses held at CFC based on borrower type	The tables below summarize changes, by company, in the allowance for loan losses as of and for the nine months ended February 29, 2016 and February 28, 2015 . Three Months Ended February 29, 2016 (Dollars in thousands) CFC RTFC NCSC Total Balance as of November 30, 2015 $ 27,700 $ 5,918 $ 5,982 $ 39,600 Provision for loan losses (2,136 ) 798 (397 ) (1,735 ) Recoveries 53 — — 53 Balance as of February 29, 2016 $ 25,617 $ 6,716 $ 5,585 $ 37,918 Three Months Ended February 28, 2015 (Dollars in thousands) CFC RTFC NCSC Total Balance as of November 30, 2014 $ 41,185 $ 5,027 $ 4,545 $ 50,757 Provision for loan losses 2,366 (193 ) 131 2,304 Recoveries 53 — — 53 Balance as of February 28, 2015 $ 43,604 $ 4,834 $ 4,676 $ 53,114 Nine Months Ended February 29, 2016 (Dollars in thousands) CFC RTFC NCSC Total Balance as of May 31, 2015 $ 23,716 $ 4,533 $ 5,441 $ 33,690 Provision for loan losses 1,740 2,183 144 4,067 Recoveries 161 — — 161 Balance as of February 29, 2016 $ 25,617 $ 6,716 $ 5,585 $ 37,918 Nine Months Ended February 28, 2015 (Dollars in thousands) CFC RTFC NCSC Total Balance as of May 31, 2014 $ 45,600 $ 4,282 $ 6,547 $ 56,429 Provision for loan losses (2,156 ) 552 (1,871 ) (3,475 ) Recoveries 160 — — 160 Balance as of February 28, 2015 $ 43,604 $ 4,834 $ 4,676 $ 53,114
Schedule of loan loss allowance and the recorded investment in outstanding loans by impairment methodology and by company	The tables below present, by company, the components of our allowance for loan losses and the recorded investment of the related loans as of February 29, 2016 and May 31, 2015 . February 29, 2016 (Dollars in thousands) CFC RTFC NCSC Total Ending balance of the allowance: Collectively evaluated $ 25,617 $ 2,162 $ 5,585 $ 33,364 Individually evaluated — 4,554 — 4,554 Total ending balance of the allowance $ 25,617 $ 6,716 $ 5,585 $ 37,918 Recorded investment in loans: Collectively evaluated $ 22,072,296 $ 344,886 $ 697,236 $ 23,114,418 Individually evaluated 6,716 13,081 — 19,797 Total recorded investment in loans $ 22,079,012 $ 357,967 $ 697,236 $ 23,134,215 Loans to members, net (1) $ 22,053,395 $ 351,251 $ 691,651 $ 23,096,297 May 31, 2015 (Dollars in thousands) CFC RTFC NCSC Total Ending balance of the allowance: Collectively evaluated $ 23,716 $ 4,138 $ 5,441 $ 33,295 Individually evaluated — 395 — 395 Total ending balance of the allowance $ 23,716 $ 4,533 $ 5,441 $ 33,690 Recorded investment in loans: Collectively evaluated $ 20,334,769 $ 381,488 $ 731,227 $ 21,447,484 Individually evaluated 7,221 4,221 294 11,736 Total recorded investment in loans $ 20,341,990 $ 385,709 $ 731,521 $ 21,459,220 Loans to members, net (1) $ 20,318,274 $ 381,176 $ 726,080 $ 21,425,530 ____________________________ (1) Excludes deferred origination costs of $10 million as of February 29, 2016 and May 31, 2015
Summary of recorded investment in individually-impaired loans and the related specific valuation allowance by member class	Our recorded investment in individually-impaired loans, which consists of the unpaid principal balance, and the related specific valuation allowance, by member class, as of February 29, 2016 and May 31, 2015 are summarized below. February 29, 2016 May 31, 2015 (Dollars in thousands) Recorded Investment Related Allowance Recorded Investment Related Allowance With no specific allowance recorded: CFC/Distribution $ 6,716 $ — $ 7,221 $ — NCSC — — 294 — Total 6,716 — 7,515 — With a specific allowance recorded: RTFC 13,081 4,554 4,221 395 Total 13,081 4,554 4,221 395 Total impaired loans $ 19,797 $ 4,554 $ 11,736 $ 395
Schedule of average recorded investment in impaired loans and the interest income recognized by member class	The tables below represent the average recorded investment in impaired loans and the interest income recognized, by member class, for the three and nine months ended February 29, 2016 and February 28, 2015 . Three Months Ended February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 (Dollars in thousands) Average Recorded Investment Interest Income Recognized CFC/Distribution $ 6,716 $ 7,221 $ 130 $ — NCSC — 312 — — RTFC 13,362 1,580 113 — Total impaired loans $ 20,078 $ 9,113 $ 243 $ — Nine Months Ended February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 (Dollars in thousands) Average Recorded Investment Interest Income Recognized CFC/Distribution $ 6,884 $ 7,342 $ 260 $ — NCSC — 334 — 10 RTFC 9,092 1,656 142 — Total impaired loans $ 15,976 $ 9,332 $ 402 $ 10
Schedule of Troubled Debt Restructured loans	TDR Loans The table below summarizes modified loans accounted for and reported as TDRs, the performance status of the loan, and the related unadvanced commitments, by member class, as of February 29, 2016 and May 31, 2015 . February 29, 2016 May 31, 2015 (Dollars in thousands) Loans Outstanding % of Total Loans Unadvanced Commitments (1) Loans Outstanding % of Total Loans Unadvanced Commitments (1) TDR loans: Nonperforming TDR loans: RTFC $ 3,506 $ — $ — $ — Total nonperforming TDR loans 3,506 0.02 % — — — % — Performing TDR loans: CFC/Distribution (2) 6,716 — 7,221 — NCSC — — 294 — RTFC 7,217 — 4,221 — Total performing TDR loans 13,933 0.06 — 11,736 0.05 — Total TDR loans $ 17,439 0.08 % $ — $ 11,736 0.05 % $ — ____________________________ (1) The interest rate on unadvanced commitments is not set until drawn; therefore, the long-term unadvanced loan commitments have been classified in this table as variable-rate unadvanced commitments. However, at the time of the advance, the borrower may select a fixed or a variable rate on the new loan. (2) A borrower in this category also had a line of credit loan outstanding that was classified as performing as of February 29, 2016 and May 31, 2015 . Unadvanced commitments related to this line of credit loan totaled $3 million and $2 million as of February 29, 2016 and May 31, 2015 , respectively.
Nonperforming Loans Receivable	Nonperforming Loans The table below summarizes nonperforming loans and the related unadvanced commitments, by member class, as of February 29, 2016 and May 31, 2015 . February 29, 2016 May 31, 2015 (Dollars in thousands) Loans Outstanding % of Total Loans Unadvanced Commitments (1) Loans Outstanding % of Total Loans Unadvanced Commitments (1) Nonperforming loans: RTFC $ 2,358 $ — $ — $ — Total nonperforming loans $ 2,358 0.01 % $ — $ — — % $ — ____________________________ (1) The interest rate on unadvanced commitments is not set until drawn; therefore, the long-term unadvanced loan commitments have been classified in this table as variable-rate unadvanced commitments. However, at the time of the advance, the borrower may select a fixed or a variable rate on the new loan.
Summary of foregone interest income as a result of holding loans on non-accrual status	The following table shows foregone interest income as a result of holding loans on nonaccrual status for the three and nine months ended February 29, 2016 and February 28, 2015 . Three Months Ended Nine Months Ended (Dollars in thousands) February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Nonperforming loans $ 2 $ 23 $ 14 $ 74 Performing TDR loans — 132 166 396 Nonperforming TDR loans 31 — 77 — Total $ 33 $ 155 $ 257 $ 470
Summary of loans outstanding as collateral pledged to secure the entity's collateral trust bonds, Clean Renewable Energy Bonds and notes payable to the Federal Agricultural Mortgage Corporation and the amount of the corresponding debt outstanding	The following table summarizes our loans outstanding as collateral pledged to secure our collateral trust bonds, Clean Renewable Energy Bonds and notes payable to Farmer Mac and the amount of the corresponding debt outstanding as of February 29, 2016 and May 31, 2015 , See “Note 5—Short-Term Debt and Credit Arrangements” and “Note 6—Long-Term Debt”) for information on our borrowings. (Dollars in thousands) February 29, 2016 May 31, 2015 Collateral trust bonds: 2007 indenture: Distribution system mortgage notes $ 7,335,292 $ 6,551,836 RUS guaranteed loans qualifying as permitted investments 152,966 156,665 Total pledged collateral $ 7,488,258 $ 6,708,501 Collateral trust bonds outstanding 6,747,711 6,197,711 1994 indenture: Distribution system mortgage notes $ 852,944 $ 905,656 Collateral trust bonds outstanding 800,000 855,000 Farmer Mac: Distribution and power supply system mortgage notes $ 2,736,592 $ 2,160,805 Notes payable outstanding 2,312,616 1,910,688 Clean Renewable Energy Bonds Series 2009A: Distribution and power supply system mortgage notes $ 17,656 $ 19,260 Cash — 485 Total pledged collateral $ 17,656 $ 19,745 Notes payable outstanding 14,871 16,529
Schedule of collateral on deposit and the amount of the corresponding debt outstanding	The following table shows the collateral on deposit and the amount of the corresponding debt outstanding as of February 29, 2016 and May 31, 2015 . (Dollars in thousands) February 29, 2016 May 31, 2015 FFB: Distribution and power supply system mortgage notes on deposit $ 5,404,553 $ 4,943,746 Notes payable outstanding 4,786,627 4,406,785

Foreclosed Assets (Tables)

Foreclosed Assets (Tables)	9 Months Ended
	Feb. 29, 2016
Repossessed Assets [Abstract]
Summary of activity for foreclosed assets	The table below summarizes amounts recorded in our consolidated financial statements for CAH as of and for the nine months ended February 29, 2016 . Nine Months Ended February 29, 2016 (Dollars in thousands) Balance as of May 31, 2015 $ 116,507 Change in estimated net proceeds (1) 1,904 Balance as of February 29, 2016 $ 118,411 ____________________________ (1) Included as a component of results of foreclosed assets on our consolidated statements of operations.

Short-Term Debt and Credit Ar25

Short-Term Debt and Credit Arrangements (Tables)	9 Months Ended
	Feb. 29, 2016
Debt Disclosure [Abstract]
Summary of short-term debt outstanding and the weighted-average effective interest rates	The following is a summary of short-term debt outstanding as of February 29, 2016 and May 31, 2015 . (Dollars in thousands) February 29, 2016 May 31, 2015 Short-term debt: Commercial paper sold through dealers, net of discounts (1) $ 954,884 $ 984,954 Commercial paper sold directly to members, at par (1)(2) 865,611 736,162 Select notes 741,927 671,635 Daily liquidity fund notes 544,503 509,131 Medium-term notes sold to members 202,095 225,872 Total short-term debt $ 3,309,020 $ 3,127,754 ____________________________ (1) Backup liquidity is provided by our revolving credit agreements. (2) Includes commercial paper sold directly to associates and affiliates.
Schedule of total available and outstanding letters of credit under the revolving credit agreements	The following table presents the total commitment, the net amount available for use and the outstanding letters of credit under our revolving credit agreements as of February 29, 2016 and May 31, 2015 . February 29, 2016 May 31, 2015 (Dollars in millions) Total Commitment Letters of Credit Outstanding Net Available for Use (1) Total Commitment Letters of Credit Outstanding Net Available for Use (1) Maturity Annual Facility Fee (2) 3-year agreement $ 25 $ — $ 25 $ 1,720 $ — $ 1,720 October 28, 2017 7.5 bps 5-year agreement 45 — 45 1,700 1 1,699 October 28, 2019 10 bps 3-year agreement 1,640 — 1,640 — — — November 19, 2018 7.5 bps 5-year agreement 1,600 1 1,599 — — — November 19, 2020 10 bps Total $ 3,310 $ 1 $ 3,309 $ 3,420 $ 1 $ 3,419 ____________________________ (1) Reflects amounts available from unaffiliated third parties that are not consolidated by CFC. (2) Facility fee determined by CFC’s senior unsecured credit ratings based on the pricing schedules put in place at the inception of the related agreement.
Schedule of required and actual financial ratios under the revolving credit agreements	The following represents our required and actual financial ratios under the revolving credit agreements as of February 29, 2016 and May 31, 2015 . Actual Requirement February 29, 2016 May 31, 2015 Minimum average adjusted TIER over the six most recent fiscal quarters (1) 1.025 1.27 1.28 Minimum adjusted TIER for the most recent fiscal year (1) (2) 1.05 1.30 1.30 Maximum ratio of adjusted senior debt to total equity (1) 10.00 6.31 5.93 ____________________________ (1) In addition to the adjustments made to the leverage ratio set forth in “Item 7. MD&A—Non-GAAP Financial Measures,” senior debt excludes guarantees to member systems that have certain investment-grade ratings by Moody’s and S&P. The TIER and debt-to-equity calculations include the adjustments set forth in “Item 7. MD&A—Non-GAAP Financial Measures” and exclude the results of operations and other comprehensive income for CAH. (2) We must meet or exceed the required ratios in order to retire patronage capital.

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Feb. 29, 2016
Long-Term Debt
Long-term debt
Summary of long-term debt outstanding and the weighted-average effective interest rates	The following is a summary of long-term debt outstanding as of February 29, 2016 and May 31, 2015 . (Dollars in thousands) February 29, 2016 May 31, 2015 Unsecured long-term debt: Medium-term notes sold through dealers $ 2,793,119 $ 2,749,894 Medium-term notes sold to members 360,917 392,298 Subtotal medium-term notes 3,154,036 3,142,192 Unamortized discount (580 ) (706 ) Debt issuance costs (17,190 ) (15,335 ) Total unsecured medium-term notes 3,136,266 3,126,151 Guaranteed Underwriter Program notes payable 4,786,627 4,406,785 Debt issuance costs (300 ) (320 ) Total Guaranteed Underwriter Program notes payable 4,786,327 4,406,465 Other unsecured notes payable 29,092 31,168 Unamortized discount (527 ) (626 ) Debt issuance costs (130 ) (155 ) Total other unsecured notes payable 28,435 30,387 Total unsecured notes payable 4,814,762 4,436,852 Total unsecured long-term debt 7,951,028 7,563,003 Secured long-term debt: Collateral trust bonds 7,547,711 7,052,711 Unamortized discount (268,024 ) (271,201 ) Debt issuance costs (30,283 ) (26,443 ) Total collateral trust bonds 7,249,404 6,755,067 Farmer Mac notes payable 2,312,616 1,910,688 Other secured notes payable 14,871 16,529 Debt issuance costs (422 ) (493 ) Total other secured notes payable 14,449 16,036 Total secured notes payable 2,327,065 1,926,724 Total secured long-term debt 9,576,469 8,681,791 Total long-term debt $ 17,527,497 $ 16,244,794

Derivative Financial Instrume27

Derivative Financial Instruments (Tables)	9 Months Ended
	Feb. 29, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of notional amounts and weighted average rates paid and received	The following table shows the outstanding notional amounts and the weighted-average rate paid and received for our interest rate swaps, by type, as of February 29, 2016 and May 31, 2015 . The substantial majority of our interest rate exchange agreements use an index based on the London Interbank Offered Rate (“LIBOR”) for either the pay or receive leg of the swap agreement. February 29, 2016 May 31, 2015 (Dollars in thousands) Notional Amount Weighted- Average Rate Paid Weighted- Average Rate Received Notional Weighted- Weighted- Pay-fixed swaps $ 6,731,641 2.95 % 0.61 % $ 5,776,533 3.15 % 0.28 % Receive-fixed swaps 3,499,000 1.01 2.82 3,849,000 0.79 3.09 Total interest rate swaps $ 10,230,641 2.29 1.36 $ 9,625,533 2.21 1.40
Schedule of fair values and notional amounts of outstanding derivatives	The following table displays the fair value of the derivative assets and derivative liabilities recorded on our condensed consolidated balance sheets and the related outstanding notional amount of our interest rate swaps as of February 29, 2016 and May 31, 2015 . February 29, 2016 May 31, 2015 (Dollars in thousands) Fair Value Notional Balance Fair Value Notional Balance Derivative assets $ 104,535 $ 3,499,000 $ 115,276 $ 3,448,615 Derivative liabilities (688,998 ) 6,731,641 (408,382 ) 6,176,918 Total $ (584,463 ) $ 10,230,641 $ (293,106 ) $ 9,625,533
Schedule of offsetting assets and liabilities	The following table presents the gross fair value of derivative assets and liabilities reported on our condensed consolidated balance sheets as of February 29, 2016 and May 31, 2015 , and provides information on the impact of netting provisions and collateral pledged. February 29, 2016 Gross Amount of Recognized Assets/ Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Assets/ Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (Dollars in thousands) Financial Instruments Cash Collateral Pledged Net Amount Derivative assets: Interest rate swaps $ 104,535 $ — $ 104,535 $ 104,535 $ — $ — Derivative liabilities: Interest rate swaps 688,998 — 688,998 104,535 — 584,463 May 31, 2015 Gross Amount of Recognized Assets/ Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Assets/ Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (Dollars in thousands) Financial Instruments Cash Collateral Pledged Net Amount Derivative assets: Interest rate swaps $ 115,276 $ — $ 115,276 $ 115,276 $ — $ — Derivative liabilities: Interest rate swaps 408,382 — 408,382 115,276 — 293,106
Schedule of offsetting assets and liabilities	The following table presents the gross fair value of derivative assets and liabilities reported on our condensed consolidated balance sheets as of February 29, 2016 and May 31, 2015 , and provides information on the impact of netting provisions and collateral pledged. February 29, 2016 Gross Amount of Recognized Assets/ Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Assets/ Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (Dollars in thousands) Financial Instruments Cash Collateral Pledged Net Amount Derivative assets: Interest rate swaps $ 104,535 $ — $ 104,535 $ 104,535 $ — $ — Derivative liabilities: Interest rate swaps 688,998 — 688,998 104,535 — 584,463 May 31, 2015 Gross Amount of Recognized Assets/ Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Assets/ Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (Dollars in thousands) Financial Instruments Cash Collateral Pledged Net Amount Derivative assets: Interest rate swaps $ 115,276 $ — $ 115,276 $ 115,276 $ — $ — Derivative liabilities: Interest rate swaps 408,382 — 408,382 115,276 — 293,106
Summary of gains and losses recorded on the consolidated statements of operations for the entity's interest rate swaps	The following table presents the components of the derivative gains (losses) reported in our condensed consolidated statements of operations for our interest rate swaps for the three and nine months ended February 29, 2016 and February 28, 2015 . Three Months Ended Nine Months Ended (Dollars in thousands) February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Derivative cash settlements $ (22,556 ) $ (21,512 ) $ (65,285 ) $ (63,377 ) Derivative forward value (220,480 ) (77,258 ) (290,952 ) (159,832 ) Derivative losses $ (243,036 ) $ (98,770 ) $ (356,237 ) $ (223,209 )
Schedule of notional amounts of derivative instruments having rating triggers	The table below displays the notional amounts of our derivative contracts with rating triggers as of February 29, 2016 and the payments that would be required if the contracts were terminated as of that date because of a downgrade of our unsecured credit ratings or the counterparty’s unsecured credit ratings below A3/A-, below Baa1/BBB+, to or below Baa2/BBB, below Baa3/BBB-, or to or below Ba2/BB+ by Moody’s or S&P, respectively. In calculating the payment amounts that would be required upon termination of the derivative contracts, we assumed that the amounts for each counterparty would be netted in accordance with the provisions of the master netting agreements for each counterparty. The net payment amounts are based on the fair value of the underlying derivative instrument, excluding the credit risk valuation adjustment, plus any unpaid accrued interest amounts. (Dollars in thousands) Notional Amount Payable Due From CFC Receivable Due to CFC Net (Payable)/Receivable Impact of mutual rating downgrade trigger: Falls below A3/A- (1) $ 63,295 $ (19,794 ) $ — $ (19,794 ) Falls below Baa1/BBB+ 6,556,100 (348,858 ) — (348,858 ) Falls to or below Baa2/BBB (2) 162,325 (3,955 ) — (3,955 ) Falls below Baa3/BBB- 400,000 (31,606 ) — (31,606 ) Total $ 7,181,720 $ (404,213 ) $ — $ (404,213 ) ____________________________ (1) Rating trigger for CFC falls below A3/A-, while rating trigger for counterparty falls below Baa1/BBB+ by Moody’s or S&P, respectively. (2) Rating trigger for CFC falls to or below Baa2/BBB, while rating trigger for counterparty falls to or below Ba2/BB+ by Moody’s or S&P, respectively.

Equity Equity (details) (Tables

Equity Equity (details) (Tables)	9 Months Ended
	Feb. 29, 2016
Text Block [Abstract]
Schedule of Stockholders Equity [Table Text Block]	Equity includes the following components as of February 29, 2016 and May 31, 2015 . (Dollars in thousands) February 29, 2016 May 31, 2015 Membership fees $ 972 $ 976 Educational fund 1,123 1,767 Total membership fees and educational fund 2,095 2,743 Patronage capital allocated 629,596 668,980 Members' capital reserve 501,302 501,731 Unallocated net income (loss) (1) 129,999 (6,135 ) Total members equity (1) 1,262,992 1,167,319 Prior years cumulative derivative forward value adjustments (287,077 ) (172,412 ) Current year derivative forward value loss (2) (289,498 ) (114,665 ) Cumulative derivative forward value adjustments (576,575 ) (287,077 ) CFC retained equity 686,417 880,242 Accumulated other comprehensive income 4,114 4,080 Total CFC equity 690,531 884,322 Noncontrolling interests 25,965 27,464 Total equity $ 716,496 $ 911,786 ____________________________ (1) Excludes derivative forward value. (2) Represents the derivative forward value income (loss) recorded by CFC for the year-to-date period.
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	The activity in the accumulated other comprehensive income account is summarized below by component as of and for the three and nine months ended February 29, 2016 and February 28, 2015 . Three Months Ended February 29, 2016 (Dollars in thousands) Unrealized Gains (Losses) AFS Securities Unrealized Gains Unrealized Losses Foreclosed Assets Unrealized Losses Defined Benefit Plan Total Beginning balance $ 6,820 $ 4,902 $ (4,248 ) $ (889 ) $ 6,585 Unrealized losses (2,297 ) — — — (2,297 ) Losses reclassified into earnings — — — 43 43 Gains reclassified into earnings — (217 ) — — (217 ) Other comprehensive income (loss) (2,297 ) (217 ) — 43 (2,471 ) Ending balance $ 4,523 $ 4,685 $ (4,248 ) $ (846 ) $ 4,114 Three Months Ended February 28, 2015 (Dollars in thousands) Unrealized Gains (Losses) AFS Securities Unrealized Gains Derivatives Unrealized Losses Foreclosed Assets Unrealized Losses Defined Benefit Plan Total Beginning balance $ 3,241 $ 5,842 $ (2,310 ) $ — $ 6,773 Unrealized gains 1,644 — — — 1,644 Unrealized losses — — — (1,091 ) (1,091 ) Losses reclassified into earnings — — — 29 29 Gains reclassified into earnings — (236 ) — — (236 ) Other comprehensive income 1,644 (236 ) — (1,062 ) 346 Ending balance $ 4,885 $ 5,606 $ (2,310 ) $ (1,062 ) $ 7,119 Nine Months Ended February 29, 2016 (Dollars in thousands) Unrealized Gains (Losses) AFS Securities Unrealized Gains Derivatives Unrealized Losses Foreclosed Assets Unrealized Losses Defined Benefit Plan Total Beginning balance $ 3,934 $ 5,371 $ (4,248 ) $ (977 ) $ 4,080 Unrealized gains 589 — — — 589 Losses reclassified into earnings — — — 131 131 Gains reclassified into earnings — (686 ) — — (686 ) Other comprehensive income 589 (686 ) — 131 34 Ending balance $ 4,523 $ 4,685 $ (4,248 ) $ (846 ) $ 4,114 Nine Months Ended February 28, 2015 (Dollars in thousands) Unrealized Gains (Losses) AFS Securities Unrealized Gains Derivatives Unrealized Losses Foreclosed Assets Unrealized Losses Defined Benefit Plan Total Beginning balance $ (361 ) $ 6,320 $ (2,310 ) $ — $ 3,649 Unrealized gains 5,246 — — — 5,246 Unrealized losses — — — (1,091 ) (1,091 ) Losses reclassified into earnings — — — 29 29 Gains reclassified into earnings — (714 ) — — (714 ) Other comprehensive income 5,246 (714 ) — (1,062 ) 3,470 Ending balance $ 4,885 $ 5,606 $ (2,310 ) $ (1,062 ) $ 7,119

Guarantees (Tables)

Guarantees (Tables)	9 Months Ended
	Feb. 29, 2016
Guarantees [Abstract]
Summary of total guarantees by type of guarantee and member class	The following table summarizes total guarantees by type of guarantee and member class as of February 29, 2016 and May 31, 2015 . (Dollars in thousands) February 29, 2016 May 31, 2015 Total by type: Long-term tax-exempt bonds $ 476,860 $ 489,520 Letters of credit 324,710 382,233 Other guarantees 113,789 114,747 Total $ 915,359 $ 986,500 Total by member class: CFC: Distribution $ 132,391 $ 172,104 Power supply 745,640 763,746 Statewide and associate 17,085 17,025 CFC total 895,116 952,875 RTFC 1,574 1,574 NCSC 18,669 32,051 Total $ 915,359 $ 986,500

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	9 Months Ended
	Feb. 29, 2016
Fair Value Disclosures [Abstract]
Schedule of the entity's assets and liabilities that are measured at fair value on a recurring basis	The table below presents the carrying value and fair value of financial instruments reported in our condensed consolidated financial statements at fair value on a recurring basis as of February 29, 2016 and May 31, 2015 , and the classification level of the fair value methodology within the fair value measurement hierarchy. February 29, 2016 May 31, 2015 (Dollars in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Investment securities, available for sale $ 85,061 $ — $ 85,061 $ 84,472 $ — $ 84,472 Deferred compensation investments 3,953 — 3,953 4,294 — 4,294 Derivative assets — 104,535 104,535 — 115,276 115,276 Derivative liabilities — 688,998 688,998 — 408,382 408,382
Schedule of carrying/fair value of the related individual assets and the total losses	The table below presents the carrying value and fair value of assets reported in our condensed consolidated financial statements at fair value on a nonrecurring basis as of February 29, 2016 and May 31, 2015 , and unrealized losses for the three and nine months ended February 29, 2016 and February 28, 2015 . Level 3 Fair Value Unrealized Losses Three Months Ended, Unrealized Losses Nine Months Ended, (Dollars in thousands) February 29, 2016 May 31, 2015 February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Impaired loans, net of specific reserves (1) $ 8,527 $ — $ (1,890 ) $ — $ (3,901 ) $ (943 )

Fair Value of Financial Instr31

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Feb. 29, 2016
Fair Value of Financial Instruments
Schedule of carrying and fair values for entity's financial instruments	The following table presents the carrying value and fair value, and the classification level within the fair value measurement hierarchy, of our financial instruments as of February 29, 2016 and May 31, 2015 . February 29, 2016 Fair Value Measurements Using (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 299,024 $ 299,024 $ 299,024 $ — $ — Restricted cash 4,268 4,268 4,268 — — Time deposits 340,000 340,000 — 340,000 — Investment securities, available for sale 85,061 85,061 85,061 — — Deferred compensation investments 3,953 3,953 3,953 — — Loans to members, net 23,106,181 23,424,554 — — 23,424,554 Accrued interest and other receivables 179,212 179,212 179,212 — — Debt service reserve funds 17,151 17,151 17,151 — — Derivative assets 104,535 104,535 — 104,535 — Liabilities: Short-term debt 3,309,020 3,308,517 1,499,503 1,809,014 — Long-term debt 17,527,497 18,611,196 — 11,311,512 7,299,684 Accrued interest payable 185,758 185,758 185,758 — — Guarantee liability 18,155 20,144 — — 20,144 Derivative liabilities 688,998 688,998 — 688,998 — Subordinated deferrable debt 395,754 389,220 — 389,220 — Members’ subordinated certificates 1,444,515 1,444,539 — — 1,444,539 May 31, 2015 Fair Value Measurements Using (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 248,836 $ 248,836 $ 248,836 $ — $ — Restricted cash 485 485 485 — — Time deposits 485,000 485,000 — 485,000 — Investment securities, available for sale 84,472 84,472 84,472 — — Deferred compensation investments 4,294 4,294 4,294 — — Loans to members, net 21,435,327 21,961,048 — — 21,961,048 Accrued interest and other receivables 197,828 197,828 197,828 — — Debt service reserve funds 25,602 25,602 25,602 — — Derivative instruments 115,276 115,276 — 115,276 — Liabilities: Short-term debt 3,127,754 3,127,541 1,494,131 1,633,410 — Long-term debt 16,244,794 17,356,223 — 10,878,302 6,477,921 Accrued interest payable 123,697 123,697 123,697 — — Guarantee liability 19,917 22,545 — — 22,545 Derivative instruments 408,382 408,382 — 408,382 — Subordinated deferrable debt 395,699 406,000 — 406,000 — Members’ subordinated certificates 1,505,420 1,505,444 — — 1,505,444

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Feb. 29, 2016
Segment Reporting [Abstract]
Schedule of segment presentation for the consolidated statements of operations and consolidated balance sheets	The following tables display segment results for the three and nine months ended February 29, 2016 and February 28, 2015 , and assets attributable to each segment as of February 29, 2016 and February 28, 2015 . Three Months Ended February 29, 2016 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of operations: Interest income $ 250,814 $ 11,367 $ (8,548 ) $ 253,633 Interest expense (170,872 ) (8,865 ) 8,548 (171,189 ) Net interest income 79,942 2,502 — 82,444 Provision for loan losses 1,735 — — 1,735 Net interest income after provision for loan losses 81,677 2,502 — 84,179 Non-interest income: Fee and other income 5,341 984 (721 ) 5,604 Derivative losses (240,363 ) (2,673 ) — (243,036 ) Results of operations of foreclosed assets 1,472 — — 1,472 Total non-interest income (233,550 ) (1,689 ) (721 ) (235,960 ) Non-interest expense: General and administrative expenses (20,266 ) (2,341 ) 255 (22,352 ) Losses on early extinguishment of debt (333 ) — — (333 ) Other (509 ) (466 ) 466 (509 ) Total non-interest expense (21,108 ) (2,807 ) 721 (23,194 ) Loss before income taxes (172,981 ) (1,994 ) — (174,975 ) Income tax benefit — 593 — 593 Net loss $ (172,981 ) $ (1,401 ) $ — $ (174,382 ) Three Months Ended February 28, 2015 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of operations: Interest income $ 235,616 $ 11,791 $ (8,667 ) $ 238,740 Interest expense (156,489 ) (9,028 ) 8,667 (156,850 ) Net interest income 79,127 2,763 — 81,890 Provision for loan losses (2,304 ) — — (2,304 ) Net interest income after provision for loan losses 76,823 2,763 — 79,586 Non-interest income: Fee and other income 4,928 922 (830 ) 5,020 Derivative losses (97,424 ) (1,346 ) — (98,770 ) Results of operations from foreclosed assets (1,369 ) — — (1,369 ) Total non-interest income (93,865 ) (424 ) (830 ) (95,119 ) Non-interest expense: General and administrative expenses (16,227 ) (2,024 ) 243 (18,008 ) Losses on early extinguishment of debt (703 ) — — (703 ) Other (7 ) (587 ) 587 (7 ) Total non-interest expense (16,937 ) (2,611 ) 830 (18,718 ) Loss before income taxes (33,979 ) (272 ) — (34,251 ) Income tax benefit — 55 — 55 Net loss $ (33,979 ) $ (217 ) $ — $ (34,196 ) Nine Months Ended February 29, 2016 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of operations: Interest income $ 747,490 $ 34,693 $ (26,109 ) $ 756,074 Interest expense (503,061 ) (27,061 ) 26,109 (504,013 ) Net interest income 244,429 7,632 — 252,061 Provision for loan losses (4,067 ) — — (4,067 ) Net interest income after provision for loan losses 240,362 7,632 — 247,994 Non-interest income: Fee and other income 16,020 3,898 (2,582 ) 17,336 Derivative losses (352,153 ) (4,084 ) — (356,237 ) Results of operations of foreclosed assets 1,605 — — 1,605 Total non-interest income (334,528 ) (186 ) (2,582 ) (337,296 ) Non-interest expense: General and administrative expenses (58,419 ) (7,762 ) 763 (65,418 ) Losses on early extinguishment of debt (333 ) — — (333 ) Other (875 ) (1,819 ) 1,819 (875 ) Total non-interest expense (59,627 ) (9,581 ) 2,582 (66,626 ) Loss before income taxes (153,793 ) (2,135 ) — (155,928 ) Income tax benefit — 153 — 153 Net loss $ (153,793 ) $ (1,982 ) $ — $ (155,775 ) February 29, 2016 (Dollars in thousands) CFC Other Elimination Consolidated Total Assets: Total loans outstanding $ 23,095,053 $ 1,055,203 $ (1,016,041 ) $ 23,134,215 Deferred loan origination costs 9,884 — — 9,884 Less: Allowance for loan losses (37,918 ) — — (37,918 ) Loans to members, net 23,067,019 1,055,203 (1,016,041 ) 23,106,181 Other assets 1,270,625 120,001 (103,782 ) 1,286,844 Total assets $ 24,337,644 $ 1,175,204 $ (1,119,823 ) $ 24,393,025 Nine Months Ended February 28, 2015 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of operations: Interest income $ 701,924 $ 34,926 $ (25,584 ) $ 711,266 Interest expense (470,635 ) (26,626 ) 25,584 (471,677 ) Net interest income 231,289 8,300 — 239,589 Provision for loan losses 3,475 — — 3,475 Net interest income after provision for loan losses 234,764 8,300 — 243,064 Non-interest income: Fee and other income 18,800 2,653 (2,204 ) 19,249 Derivative losses (219,656 ) (3,553 ) — (223,209 ) Results of operations from foreclosed assets (33,059 ) — — (33,059 ) Total non-interest income (233,915 ) (900 ) (2,204 ) (237,019 ) Non-interest expense: General and administrative expenses (49,479 ) (6,039 ) 730 (54,788 ) Losses on early extinguishment of debt (703 ) (703 ) Other 50 (1,474 ) 1,474 50 Total non-interest expense (50,132 ) (7,513 ) 2,204 (55,441 ) Loss before income taxes (49,283 ) (113 ) — (49,396 ) Income tax expense — (100 ) — (100 ) Net loss $ (49,283 ) $ (213 ) $ — $ (49,496 ) February 28, 2015 (Dollars in thousands) CFC Other Elimination Consolidated Total Assets: Total loans outstanding $ 21,187,603 $ 1,117,252 $ (1,102,456 ) $ 21,202,399 Deferred loan origination costs 9,693 — — 9,693 Less: Allowance for loan losses (53,114 ) — — (53,114 ) Loans to members, net 21,144,182 1,117,252 (1,102,456 ) 21,158,978 Other assets 1,448,655 157,122 (115,834 ) 1,489,943 Total assets $ 22,592,837 $ 1,274,374 $ (1,218,290 ) $ 22,648,921

Summary of Significant Accoun33

Summary of Significant Accounting Policies (Details) $ in Thousands	9 Months Ended
	Feb. 29, 2016USD ($)subsidiary	May. 31, 2015USD ($)	Feb. 28, 2015USD ($)
General Information and Accounting Policies [Line Items]
Number of Groups of Subsidiaries Wholly Owned by Entity Holding Foreclosed Assets | subsidiary	1
Loans to members, net	$ 23,106,181	$ 21,435,327	$ 21,158,978
Unamortized debt issuance costs		$ 47,000
Consolidated variable interest entities | RTFC
General Information and Accounting Policies [Line Items]
Guarantee amount	2,000
Total assets including loans outstanding to members	464,000
Loans to members, net	358,000
Maximum amount committed to extend loan	4,000,000
Commitment outstanding	340,000
Consolidated variable interest entities | NCSC
General Information and Accounting Policies [Line Items]
Guarantee amount	49,000
Maximum potential exposure	53,000
Total assets including loans outstanding to members	711,000
Loans to members, net	697,000
Maximum amount committed to extend loan	3,000,000
Commitment outstanding	725,000
Loans outstanding	$ 676,000

Summary of Significant Accoun34

Summary of Significant Accounting Policies - Interest Income Table (Details) - USD ($) $ in Thousands		3 Months Ended				9 Months Ended
		Feb. 29, 2016		Feb. 28, 2015		Feb. 29, 2016		Feb. 28, 2015		May. 31, 2015
Components of interest income
Interest income		$ 253,633		$ 238,740		$ 756,074		$ 711,266
Interest on investments		1,323		2,395		5,905		6,516
Fee income		(279)	[1]	32	[2]	(808)	[1]	185	[1]
Deferred conversion fees		60,000				60,000				$ 70,000
Long-term fixed-rate loans
Components of interest income
Interest income	[2]	240,933		224,770		716,736		669,121
Long-term variable-rate loans
Components of interest income
Interest income		5,077		4,836		14,919		15,099
Line of credit loans
Components of interest income
Interest income		6,335		6,707		18,919		20,335
Restructured loans
Components of interest income
Interest income		163		$ 0		293		$ 10
Non-performing loans
Components of interest income
Interest income		$ 81				$ 110
[1]	Primarily related to amortization of loan origination costs and late payment fees. For the three and nine months ended February 29, 2016, it excludes loan upfront and arranger fees, which are not based on interest rates and are included in the fee and other income line of the condensed consolidated statements of operations.
[2]	Includes loan conversion fees, which are deferred and recognized in interest income using the effective interest method. Also includes a small portion of conversion fees, which are intended to cover the administrative costs related to the conversion and are recognized into income immediately at conversion

Summary of Significant Accoun35

Summary of Significant Accounting Policies - Interest Expense Table (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Interest expense on debt:
Total interest expense		$ 171,189	$ 156,850	$ 504,013	$ 471,677
Short-term debt
Interest expense on debt:
Interest expense on debt	[1],[2],[3]	4,387	2,982	10,311	11,786
Medium-term notes
Interest expense on debt:
Interest expense on debt	[1],[2],[3]	21,773	17,774	62,745	52,640
Collateral trust bonds
Interest expense on debt:
Interest expense on debt	[1],[2],[3]	83,810	79,026	248,410	232,290
Subordinated deferrable debt
Interest expense on debt:
Interest expense on debt	[1],[2],[3]	4,785	4,782	14,356	14,352
Subordinated certificates
Interest expense on debt:
Interest expense on debt	[1],[2],[3]	15,022	15,280	45,425	48,131
Long-term notes payable
Interest expense on debt:
Interest expense on debt	[1],[2],[3]	$ 41,412	$ 37,006	$ 122,766	$ 112,478
[1]	Includes fees related to funding activities, including fees paid to banks participating in our revolving credit agreements. Amounts are recognized as incurred or amortized on a straight-line basis over the life of the agreement.
[2]	Includes underwriter’s fees, legal fees, printing costs and certain accounting fees, which are deferred and recognized in interest expense using the effective interest method. Also includes issuance costs related to dealer commercial paper, which are recognized immediately as incurred.
[3]	Represents interest expense and the amortization of discounts on debt.

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015	May. 31, 2015
Investments
Amortized Cost	$ 80,538		$ 80,538		$ 80,538
Gross Unrealized Gains	4,523		4,523		3,934
Gross Unrealized Losses	0		0		0
Fair Value	85,061		85,061		84,472
Unrealized gains (losses) on available-for-sale investment securities	(2,297)	$ 1,644	589	$ 5,246
Preferred Stock | Federal Agricultural Mortgage Corporation Series A preferred stock
Investments
Amortized Cost	30,000		30,000		30,000
Gross Unrealized Gains	687		687		264
Gross Unrealized Losses	0		0		0
Fair Value	30,687		30,687		30,264
Preferred Stock | Federal Agricultural Mortgage Corporation Series B Preferred Stock
Investments
Amortized Cost	25,000		25,000		25,000
Gross Unrealized Gains	1,920		1,920		1,250
Gross Unrealized Losses	0		0		0
Fair Value	26,920		26,920		26,250
Preferred Stock | Federal Agricultural Mortgage Corporation Series C Preferred Stock
Investments
Amortized Cost	25,000		25,000		25,000
Gross Unrealized Gains	60		60		900
Gross Unrealized Losses	0		0		0
Fair Value	25,060		25,060		25,900
Common Stock | Federal Agricultural Mortgage Corporation Class A common stock
Investments
Amortized Cost	538		538		538
Gross Unrealized Gains	1,856		1,856		1,520
Gross Unrealized Losses	0		0		0
Fair Value	$ 2,394		$ 2,394		$ 2,058

Loans and Commitments (Details)

Loans and Commitments (Details) - USD ($) $ in Thousands		Feb. 29, 2016		Nov. 30, 2015	May. 31, 2015		Feb. 28, 2015
Loans outstanding
Total loans outstanding		$ 23,134,215	[1],[2]		$ 21,459,220	[1],[2]	$ 21,202,399
Deferred origination costs		9,884	[1]		9,797	[1]	$ 9,693
Loans to members	[1]	23,144,099			21,469,017
Unadvanced commitments
Total Unadvanced commitments		3,000			2,000
Unadvanced commitments
Unadvanced commitments
Total Unadvanced commitments	[1],[2],[3]	13,312,420			14,129,750
CFC
Loans outstanding
Total loans outstanding	[1]	22,079,012			20,341,990
CFC | Unadvanced commitments
Unadvanced commitments
Total Unadvanced commitments	[1],[3]	12,400,440			12,875,542
CFC | Distribution
Loans outstanding
Total loans outstanding	[1]	17,700,859			16,095,043
CFC | Distribution | Unadvanced commitments
Unadvanced commitments
Total Unadvanced commitments	[1],[3]	9,045,185			9,474,568
CFC | Power supply
Loans outstanding
Total loans outstanding	[1]	4,322,069			4,181,481
CFC | Power supply | Unadvanced commitments
Unadvanced commitments
Total Unadvanced commitments	[1],[3]	3,219,631			3,273,501
CFC | Statewide and associate
Loans outstanding
Total loans outstanding	[1]	56,084			65,466
CFC | Statewide and associate | Unadvanced commitments
Unadvanced commitments
Total Unadvanced commitments	[1],[3]	135,624			127,473
RTFC
Loans outstanding
Total loans outstanding	[1]	357,967			385,709
RTFC | Unadvanced commitments
Unadvanced commitments
Total Unadvanced commitments	[1],[3]	258,690			288,810
NCSC
Loans outstanding
Total loans outstanding	[1]	697,236			731,521
NCSC | Unadvanced commitments
Unadvanced commitments
Total Unadvanced commitments	[1],[3]	653,290			965,398
Loans Guaranteed by Farmer Mac
Loans outstanding
Total loans outstanding		511,000		$ 520,000
Long-term fixed-rate loans
Loans outstanding
Total loans outstanding	[1]	21,127,042			19,543,274
Long-term variable-rate loans
Loans outstanding
Total loans outstanding	[1]	718,193			698,495
Long-term variable-rate loans | Unadvanced commitments
Unadvanced commitments
Total Unadvanced commitments	[1],[3]	4,402,860			4,835,623
Loans guaranteed by RUS
Loans outstanding
Total loans outstanding	[1]	174,990			179,241
Line of credit loans
Loans outstanding
Total loans outstanding	[1]	1,113,990			1,038,210
Line of credit loans | Unadvanced commitments
Unadvanced commitments
Total Unadvanced commitments	[1],[3]	$ 8,909,560			$ 9,294,127
[1]	Includes nonperforming and restructured loans.
[2]	Represents the unpaid principal balance excluding deferred loan origination costs.
[3]	The interest rate on unadvanced commitments is not set until drawn; therefore, the long-term unadvanced loan commitments have been classified in this table as variable-rate unadvanced commitments. However, at the time of the advance, the borrower may select a fixed or a variable rate on the new loan.

Loans and Commitments (Details

Loans and Commitments (Details 2) - USD ($) $ in Thousands		9 Months Ended
		Feb. 29, 2016		Feb. 28, 2015	Nov. 30, 2015	May. 31, 2015
Notional maturities of committed lines of credit
Total unadvanced commitments		$ 3,000				$ 2,000
Loans Receivable Cost of Loans Sold		84,000		$ 25,000
Total loans outstanding		23,134,215	[1],[2]	$ 21,202,399		21,459,220	[1],[2]
Unadvanced commitments
Notional maturities of committed lines of credit
2,015		407,281
2,016		6,230,366
2,017		1,821,478
2,018		1,987,942
2,019		1,625,245
Thereafter		1,240,108
Total unadvanced commitments	[1],[2],[3]	$ 13,312,420				14,129,750
Maximum period of commitments to fully fund agreements which have not yet been advanced		5 years
Unadvanced commitments not subject to material adverse change clauses
Notional maturities of committed lines of credit
2,015		$ 11,000
2,016		125,377
2,017		683,351
2,018		673,109
2,019		591,526
Thereafter		373,072
Total unadvanced commitments		$ 2,457,435				2,765,000
Maximum period of commitments to fully fund agreements which have not yet been advanced		5 years
Unadvanced commitments subject to material adverse change clauses
Notional maturities of committed lines of credit
Total unadvanced commitments		$ 10,855,000				11,365,000
Loans Guaranteed by Farmer Mac
Notional maturities of committed lines of credit
Total loans outstanding		511,000			$ 520,000
Line of credit loans
Notional maturities of committed lines of credit
Total loans outstanding	[1]	1,113,990				1,038,210
Line of credit loans | Unadvanced commitments
Notional maturities of committed lines of credit
2,015		280,881
2,016		5,200,892
2,017		1,120,869
2,018		909,795
2,019		742,503
Thereafter		654,620
Total unadvanced commitments	[1],[3]	8,909,560				9,294,127
Long-term variable-rate loans
Notional maturities of committed lines of credit
Total loans outstanding	[1]	718,193				698,495
Long-term variable-rate loans | Unadvanced commitments
Notional maturities of committed lines of credit
2,015		126,400
2,016		1,029,474
2,017		700,609
2,018		1,078,147
2,019		882,742
Thereafter		585,488
Total unadvanced commitments	[1],[3]	$ 4,402,860				$ 4,835,623
[1]	Includes nonperforming and restructured loans.
[2]	Represents the unpaid principal balance excluding deferred loan origination costs.
[3]	The interest rate on unadvanced commitments is not set until drawn; therefore, the long-term unadvanced loan commitments have been classified in this table as variable-rate unadvanced commitments. However, at the time of the advance, the borrower may select a fixed or a variable rate on the new loan.

Loans and Commitments (Detail39

Loans and Commitments (Details 3) - USD ($) $ in Thousands		Feb. 29, 2016		May. 31, 2015		Feb. 28, 2015
Payment Status of Loans
Total past due		$ 3,506		$ 0
Total loans outstanding		23,134,215	[1],[2]	21,459,220	[1],[2]	$ 21,202,399
Non-accrual loans		$ 5,864		$ 11,736
As a % of total loans
Current (percent)		99.98%		100.00%
30-89 days past due (percent)		0.00%		0.00%
90 days or more past due (percent)	[3]	0.02%		0.00%
Total past due (percent)		0.02%		0.00%
Total financing receivables (percent)		100.00%		100.00%
Non-accrual loans (percent)		0.03%		0.05%
CFC
Payment Status of Loans
Total past due		$ 0		$ 0
Total loans outstanding	[1]	22,079,012		20,341,990
Non-accrual loans		0		7,221
CFC | Distribution
Payment Status of Loans
Total past due		0		0
Total loans outstanding	[1]	17,700,859		16,095,043
Non-accrual loans		0		7,221
CFC | Power supply
Payment Status of Loans
Total past due		0		0
Total loans outstanding	[1]	4,322,069		4,181,481
Non-accrual loans		0		0
CFC | Statewide and associate
Payment Status of Loans
Total loans outstanding	[1]	56,084		65,466
RTFC
Payment Status of Loans
Total past due		3,506		0
Total loans outstanding	[1]	357,967		385,709
Non-accrual loans		5,864		4,221
NCSC
Payment Status of Loans
Total past due		0
Total loans outstanding	[1]	697,236		731,521
Non-accrual loans		0		294
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Payment Status of Loans
Total past due	[3]	3,506		0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | CFC
Payment Status of Loans
Total past due	[3]	0		0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | CFC | Distribution
Payment Status of Loans
Total past due	[3]	0		0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | CFC | Power supply
Payment Status of Loans
Total past due	[3]	0		0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | RTFC
Payment Status of Loans
Total past due	[3]	3,506		0
Financing Receivables, 1 to 29 Days Past Due [Member]
Payment Status of Loans
Current		23,130,709		21,459,220
Financing Receivables, 1 to 29 Days Past Due [Member] | CFC
Payment Status of Loans
Current		22,079,012		20,341,990
Financing Receivables, 1 to 29 Days Past Due [Member] | CFC | Distribution
Payment Status of Loans
Current		17,700,859		16,095,043
Financing Receivables, 1 to 29 Days Past Due [Member] | CFC | Power supply
Payment Status of Loans
Current		4,322,069		4,181,481
Financing Receivables, 1 to 29 Days Past Due [Member] | CFC | Statewide and associate
Payment Status of Loans
Current		56,084		65,466
Financing Receivables, 1 to 29 Days Past Due [Member] | RTFC
Payment Status of Loans
Current		354,461		385,709
Financing Receivables, 1 to 29 Days Past Due [Member] | NCSC
Payment Status of Loans
Current		697,236		731,521
Financing Receivables, 30 to 89 Days Past Due [Member]
Payment Status of Loans
Total past due		0		0
Financing Receivables, 30 to 89 Days Past Due [Member] | CFC
Payment Status of Loans
Total past due		0		0
Financing Receivables, 30 to 89 Days Past Due [Member] | CFC | Distribution
Payment Status of Loans
Total past due		0		0
Financing Receivables, 30 to 89 Days Past Due [Member] | CFC | Power supply
Payment Status of Loans
Total past due		0		0
Financing Receivables, 30 to 89 Days Past Due [Member] | RTFC
Payment Status of Loans
Total past due		0		0
Financing Receivables, 30 to 89 Days Past Due [Member] | NCSC
Payment Status of Loans
Total past due		$ 0		$ 0
[1]	Includes nonperforming and restructured loans.
[2]	Represents the unpaid principal balance excluding deferred loan origination costs.
[3]	All loans 90 days or more past due are on nonaccrual status.

Loans and Commitments (Detail40

Loans and Commitments (Details 4) - USD ($) $ in Thousands		Feb. 29, 2016		May. 31, 2015		Feb. 28, 2015
Credit Quality
Total loans outstanding		$ 23,134,215	[1],[2]	$ 21,459,220	[1],[2]	$ 21,202,399
CFC
Credit Quality
Total loans outstanding	[1]	22,079,012		20,341,990
CFC | Distribution
Credit Quality
Total loans outstanding	[1]	17,700,859		16,095,043
CFC | Power supply
Credit Quality
Total loans outstanding	[1]	4,322,069		4,181,481
CFC | Statewide and associate
Credit Quality
Total loans outstanding	[1]	56,084		65,466
RTFC
Credit Quality
Total loans outstanding	[1]	357,967		385,709
NCSC
Credit Quality
Total loans outstanding	[1]	697,236		731,521
Pass
Credit Quality
Total loans outstanding		23,084,929		21,409,443
Pass | CFC
Credit Quality
Total loans outstanding		22,045,775		20,309,197
Pass | CFC | Distribution
Credit Quality
Total loans outstanding		17,667,879		16,062,516
Pass | CFC | Power supply
Credit Quality
Total loans outstanding		4,322,069		4,181,481
Pass | CFC | Statewide and associate
Credit Quality
Total loans outstanding		55,827		65,200
Pass | RTFC
Credit Quality
Total loans outstanding		344,886		373,087
Pass | NCSC
Credit Quality
Total loans outstanding		694,268		727,159
Criticized
Credit Quality
Total loans outstanding		49,286		49,777
Criticized | CFC
Credit Quality
Total loans outstanding		33,237		32,793
Criticized | CFC | Distribution
Credit Quality
Total loans outstanding		32,980		32,527
Criticized | CFC | Power supply
Credit Quality
Total loans outstanding		0		0
Criticized | CFC | Statewide and associate
Credit Quality
Total loans outstanding		257		266
Criticized | RTFC
Credit Quality
Total loans outstanding		13,081		12,622
Criticized | NCSC
Credit Quality
Total loans outstanding		$ 2,968		$ 4,362
[1]	Includes nonperforming and restructured loans.
[2]	Represents the unpaid principal balance excluding deferred loan origination costs.

Loans and Commitments (Detail41

Loans and Commitments (Details 8) - USD ($) $ in Thousands		Feb. 29, 2016		May. 31, 2015		Feb. 28, 2015
Loan Security
Total loans outstanding		$ 23,134,215	[1],[2]	$ 21,459,220	[1],[2]	$ 21,202,399
Loans receivable as a percentage of total loan (percent)		100.00%		100.00%
CFC
Loan Security
Total loans outstanding	[1]	$ 22,079,012		$ 20,341,990
RTFC
Loan Security
Total loans outstanding	[1]	357,967		385,709
NCSC
Loan Security
Total loans outstanding	[1]	697,236		731,521
Long-term fixed-rate loans
Loan Security
Total loans outstanding	[1]	21,127,042		19,543,274
Long-term variable-rate loans
Loan Security
Total loans outstanding	[1]	718,193		698,495
Loans guaranteed by RUS
Loan Security
Total loans outstanding	[1]	174,990		179,241
Line of credit loans
Loan Security
Total loans outstanding	[1]	$ 1,113,990		$ 1,038,210
[1]	Includes nonperforming and restructured loans.
[2]	Represents the unpaid principal balance excluding deferred loan origination costs.

Loans and Commitments (Detail42

Loans and Commitments (Details 9) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016		May. 31, 2015		Feb. 28, 2015
Activity in the loan loss allowance
Balance at the beginning of the period		$ 39,600	$ 50,757	$ 33,690	$ 56,429
Provision for loan losses		(1,735)	2,304	4,067	(3,475)
Recoveries of loans previously charged-off		53	53	161	160
Balance at the end of the period		37,918	53,114	37,918	53,114
Ending balance of the allowance:
Collectively evaluated						$ 33,364		$ 33,295
Individually evaluated						4,554		395
Total ending balance of the allowance		39,600	50,757	33,690	56,429	37,918		33,690		$ 53,114
Recorded investment in loans:
Collectively evaluated						23,114,418		21,447,484
Individually evaluated						19,797		11,736
Total financing receivables						23,134,215	[1],[2]	21,459,220	[1],[2]	21,202,399
Loans to members, net	[3]					23,096,297		21,425,530
Deferred origination costs						9,884	[1]	9,797	[1]	9,693
CFC
Activity in the loan loss allowance
Balance at the beginning of the period		27,700	41,185	23,716	45,600
Provision for loan losses		(2,136)	2,366	1,740	(2,156)
Recoveries of loans previously charged-off		53	53	161	160
Balance at the end of the period		25,617	43,604	25,617	43,604
Ending balance of the allowance:
Collectively evaluated						25,617		23,716
Individually evaluated								0
Total ending balance of the allowance		27,700	41,185	23,716	45,600	25,617		23,716		43,604
Recorded investment in loans:
Collectively evaluated						22,072,296		20,334,769
Individually evaluated						6,716		7,221
Total financing receivables	[1]					22,079,012		20,341,990
Loans to members, net	[3]					22,053,395		20,318,274
RTFC
Activity in the loan loss allowance
Balance at the beginning of the period		5,918	5,027	4,533	4,282
Provision for loan losses		798	(193)	2,183	552
Balance at the end of the period		6,716	4,834	6,716	4,834
Ending balance of the allowance:
Collectively evaluated						2,162		4,138
Individually evaluated						4,554		395
Total ending balance of the allowance		5,918	5,027	4,533	4,282	6,716		4,533		4,834
Recorded investment in loans:
Collectively evaluated						344,886		381,488
Individually evaluated						13,081		4,221
Total financing receivables	[1]					357,967		385,709
Loans to members, net	[3]					351,251		381,176
NCSC
Activity in the loan loss allowance
Balance at the beginning of the period		5,982	4,545	5,441	6,547
Provision for loan losses		(397)	131	144	(1,871)
Balance at the end of the period		5,585	4,676	5,585	4,676
Ending balance of the allowance:
Collectively evaluated						5,585		5,441
Individually evaluated						0		0
Total ending balance of the allowance		$ 5,982	$ 4,545	$ 5,441	$ 6,547	5,585		5,441		$ 4,676
Recorded investment in loans:
Collectively evaluated						697,236		731,227
Individually evaluated						0		294
Total financing receivables	[1]					697,236		731,521
Loans to members, net	[3]					$ 691,651		$ 726,080
[1]	Includes nonperforming and restructured loans.
[2]	Represents the unpaid principal balance excluding deferred loan origination costs.
[3]	Excludes deferred origination costs of $10 million as of February 29, 2016 and May 31, 2015

Loans and Commitments (Detail43

Loans and Commitments (Details 10) - USD ($) $ in Thousands		3 Months Ended			9 Months Ended
		Feb. 29, 2016		Feb. 28, 2015	Feb. 29, 2016		Feb. 28, 2015	May. 31, 2015
Recorded investment in individually-impaired loans and the related specific valuation allowance
With no specific allowance recorded		$ 6,716			$ 6,716			$ 7,515
Impaired Financing Receivable, with Related Allowance, Recorded Investment		13,081			13,081			4,221
Total impaired loans		19,797			19,797			11,736
Related allowance		4,554			4,554			$ 395
Average recorded investment
Total impaired loans		20,078		$ 9,113	15,976		$ 9,332
Interest income recognized
Interest impaired loans		243		0	402		10
Interest income reduction as a result of holding loans on non-accrual status
Interest income reduced		$ 33		155	$ 257		470
Loans receivable as a percentage of total loan (percent)		100.00%			100.00%			100.00%
Total loans outstanding		$ 23,134,215	[1],[2]	21,202,399	$ 23,134,215	[1],[2]	21,202,399	$ 21,459,220	[1],[2]
Non-performing loans
Recorded investment in individually-impaired loans and the related specific valuation allowance
Impaired Financing Receivable, with Related Allowance, Recorded Investment		2,358			2,358			0
Interest income reduction as a result of holding loans on non-accrual status
Interest income reduced		2		23	14		74
Performing Troubled Debt Restructuring loans [Member]
Interest income reduction as a result of holding loans on non-accrual status
Interest income reduced		0		132	166		396
Total loans outstanding		13,933			13,933			11,736
Restructured loans
Interest income recognized
Interest impaired loans					0
Nonperforming Troubled Debt Restructuring loans [Member]
Recorded investment in individually-impaired loans and the related specific valuation allowance
Impaired Financing Receivable, with Related Allowance, Recorded Investment		3,506			3,506
Interest income reduction as a result of holding loans on non-accrual status
Interest income reduced		$ 31		0	$ 77		0
Loans receivable as a percentage of total loan (percent)		0.02%			0.02%
CFC
Interest income reduction as a result of holding loans on non-accrual status
Total loans outstanding	[1]	$ 22,079,012			$ 22,079,012			20,341,990
CFC | Distribution
Recorded investment in individually-impaired loans and the related specific valuation allowance
With no specific allowance recorded		6,716			6,716			7,221
Average recorded investment
Total impaired loans		6,716		7,221	6,884		7,342
Interest income recognized
Interest impaired loans		130		0	260		0
Interest income reduction as a result of holding loans on non-accrual status
Total loans outstanding	[1]	17,700,859			17,700,859			16,095,043
CFC | Power supply
Interest income reduction as a result of holding loans on non-accrual status
Total loans outstanding	[1]	4,322,069			4,322,069			4,181,481
NCSC
Recorded investment in individually-impaired loans and the related specific valuation allowance
With no specific allowance recorded		0			0			294
Average recorded investment
Total impaired loans		0		312	0		334
Interest income recognized
Interest impaired loans		0		0			10
Interest income reduction as a result of holding loans on non-accrual status
Total loans outstanding	[1]	697,236			697,236			731,521
RTFC
Recorded investment in individually-impaired loans and the related specific valuation allowance
Impaired Financing Receivable, with Related Allowance, Recorded Investment		13,081			13,081			4,221
Related allowance		4,554			4,554			395
Average recorded investment
Total impaired loans		13,362		1,580	9,092		$ 1,656
Interest income recognized
Interest impaired loans		113		$ 0	142
Interest income reduction as a result of holding loans on non-accrual status
Total loans outstanding	[1]	357,967			357,967			$ 385,709
RTFC | Non-performing loans
Recorded investment in individually-impaired loans and the related specific valuation allowance
Impaired Financing Receivable, with Related Allowance, Recorded Investment		$ 2,358			$ 2,358
[1]	Includes nonperforming and restructured loans.
[2]	Represents the unpaid principal balance excluding deferred loan origination costs.

Loans and Commitments (Detail44

Loans and Commitments (Details 11) - USD ($) $ in Thousands		Feb. 29, 2016		May. 31, 2015		Feb. 28, 2015
Financing Receivable, Modifications [Line Items]
Total loans outstanding		$ 23,134,215	[1],[2]	$ 21,459,220	[1],[2]	$ 21,202,399
Other Commitment		3,000		2,000
Loans outstanding		$ 13,081		4,221
Unadvanced commitments				$ 0
Loans and Leases Receivable Commercial, Net of Deferred Income, Percentage		100.00%		100.00%
Nonperforming Troubled Debt Restructuring loans [Member]
Financing Receivable, Modifications [Line Items]
Loans outstanding		$ 3,506
Loans and Leases Receivable Commercial, Net of Deferred Income, Percentage		0.02%
Non-performing loans
Financing Receivable, Modifications [Line Items]
Loans outstanding		$ 2,358		$ 0
Loans and Leases Receivable Commercial, Net of Deferred Income, Percentage		0.01%
Performing Troubled Debt Restructuring loans [Member]
Financing Receivable, Modifications [Line Items]
Total loans outstanding		$ 13,933		$ 11,736
Performing TDR Loans As Percentage of Total Loans		0.06%		0.05%
Troubled Debt Restructuring Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
Total loans outstanding		$ 17,439		$ 11,736
Loans and Leases Receivable Commercial, Net of Deferred Income, Percentage		0.08%		0.05%
Line of credit loans
Financing Receivable, Modifications [Line Items]
Total loans outstanding	[1]	$ 1,113,990		$ 1,038,210
Long-term fixed-rate loans
Financing Receivable, Modifications [Line Items]
Total loans outstanding	[1]	21,127,042		19,543,274
Long-term variable-rate loans
Financing Receivable, Modifications [Line Items]
Total loans outstanding	[1]	718,193		698,495
CFC
Financing Receivable, Modifications [Line Items]
Total loans outstanding	[1]	22,079,012		20,341,990
CFC | Performing Troubled Debt Restructuring loans [Member]
Financing Receivable, Modifications [Line Items]
Loans outstanding	[3]	6,716		7,221
RTFC
Financing Receivable, Modifications [Line Items]
Total loans outstanding	[1]	357,967		385,709
Loans outstanding		13,081		4,221
RTFC | Non-performing loans
Financing Receivable, Modifications [Line Items]
Loans outstanding		2,358
RTFC | Performing Troubled Debt Restructuring loans [Member]
Financing Receivable, Modifications [Line Items]
Loans outstanding		7,217		4,221
RTFC | Long-term variable-rate loans | Nonperforming Troubled Debt Restructuring loans [Member]
Financing Receivable, Modifications [Line Items]
Loans outstanding		3,506
RTFC | Long-term variable-rate loans | Non-performing loans
Financing Receivable, Modifications [Line Items]
Loans outstanding				0
NCSC
Financing Receivable, Modifications [Line Items]
Total loans outstanding	[1]	697,236		731,521
NCSC | Performing Troubled Debt Restructuring loans [Member]
Financing Receivable, Modifications [Line Items]
Loans outstanding		$ 0		$ 294
[1]	Includes nonperforming and restructured loans.
[2]	Represents the unpaid principal balance excluding deferred loan origination costs.
[3]	A borrower in this category also had a line of credit loan outstanding that was classified as performing as of February 29, 2016 and May 31, 2015. Unadvanced commitments related to this line of credit loan totaled $3 million and $2 million as of February 29, 2016 and May 31, 2015, respectively.

Loans and Commitments (Detail45

Loans and Commitments (Details 12) - USD ($) $ in Thousands	Feb. 29, 2016	May. 31, 2015
Pledging of Loans and Loans on Deposit
Impaired Financing Receivable, with Related Allowance, Recorded Investment	$ 13,081	$ 4,221
Cash	$ 4,268	$ 485
Loans and Leases Receivable Commercial, Net of Deferred Income, Percentage	100.00%	100.00%
Collateral trust bonds 2007 indenture
Pledging of Loans and Loans on Deposit
Loans outstanding and pledged as collateral	$ 7,488,258	$ 6,708,501
Debt outstanding	6,747,711	6,197,711
Collateral trust bonds 1994 indenture
Pledging of Loans and Loans on Deposit
Debt outstanding	800,000	855,000
Notes payable | Federal Agricultural Mortgage Corporation
Pledging of Loans and Loans on Deposit
Debt outstanding	2,312,616	1,910,688
Notes payable | Federal Financing Bank
Pledging of Loans and Loans on Deposit
Debt outstanding	4,786,627	4,406,785
Clean Renewable Energy Bonds Series 2009A
Pledging of Loans and Loans on Deposit
Debt outstanding	14,871	16,529
Cash	0	485
Total pledged collateral	17,656	19,745
Mortgage notes | Distribution system mortgage notes | Collateral trust bonds 2007 indenture
Pledging of Loans and Loans on Deposit
Loans outstanding and pledged as collateral	7,335,292	6,551,836
Mortgage notes | Distribution system mortgage notes | Collateral trust bonds 1994 indenture
Pledging of Loans and Loans on Deposit
Loans outstanding and pledged as collateral	852,944	905,656
Mortgage notes | Distribution and power supply system mortgage notes | Federal Agricultural Mortgage Corporation
Pledging of Loans and Loans on Deposit
Loans outstanding and pledged as collateral	2,736,592	2,160,805
Mortgage notes | Distribution and power supply system mortgage notes | Clean Renewable Energy Bonds Series 2009A
Pledging of Loans and Loans on Deposit
Loans outstanding and pledged as collateral	17,656	19,260
RUS guaranteed loans qualifying as permitted investments | Collateral trust bonds 2007 indenture
Pledging of Loans and Loans on Deposit
Loans outstanding and pledged as collateral	152,966	156,665
Mortgage notes receivable on deposit | Distribution and power supply system mortgage notes | Federal Financing Bank
Pledging of Loans and Loans on Deposit
Loans outstanding and pledged as collateral	5,404,553	4,943,746
Nonperforming Financing Receivable [Member]
Pledging of Loans and Loans on Deposit
Impaired Financing Receivable, with Related Allowance, Recorded Investment	$ 2,358	$ 0

Foreclosed Assets (Details)

Foreclosed Assets (Details) - USD ($) $ in Thousands		9 Months Ended
		Feb. 29, 2016	Sep. 30, 2015	May. 31, 2015	Feb. 28, 2015
Activity for foreclosed assets
Beginning balance		$ 116,507
Ending balance		118,411
Assets		24,393,025		$ 22,846,059	$ 22,648,921
Liabilities		23,676,529		$ 21,934,273
CAH
Activity for foreclosed assets
Assets		164,000
Liabilities		241,000
Net equity		77,000
Loans and Interest Payable		190,000
Foreclosed Assets
Activity for foreclosed assets
Beginning balance		116,507
Fair value valuation adjustment loss	[1]	(1,904)
Ending balance		$ 118,411
Foreclosed Assets | CAH
Activity for foreclosed assets
Purchase price			$ 145,000
Purchase price			$ 145,000
[1]	Included as a component of results of foreclosed assets on our consolidated statements of operations.

Short-Term Debt and Credit Ar47

Short-Term Debt and Credit Arrangements - Short-Term Debt Table (Details) - USD ($) $ in Thousands		Feb. 29, 2016	May. 31, 2015
Short-Term Debt Outstanding
Short-term debt		$ 3,309,020	$ 3,127,754
Short-term debt
Short-Term Debt Outstanding
Short-term debt		3,309,020	3,127,754
Short-term debt | Commercial paper sold through dealers, net of discounts
Short-Term Debt Outstanding
Short-term debt	[1]	954,884	984,954
Short-term debt | Commercial paper sold directly to members, at par
Short-Term Debt Outstanding
Short-term debt	[1],[2]	865,611	736,162
Short-term debt | Select notes
Short-Term Debt Outstanding
Short-term debt		741,927	671,635
Short-term debt | Daily liquidity fund notes
Short-Term Debt Outstanding
Short-term debt		544,503	509,131
Short-term debt | Medium Term Notes Sold to Members
Short-Term Debt Outstanding
Short-term debt		$ 202,095	$ 225,872
[1]	Backup liquidity is provided by our revolving credit agreements.
[2]	Includes commercial paper sold directly to associates and affiliates.

Short-Term Debt and Credit Ar48

Short-Term Debt and Credit Arrangements (Details 2)		9 Months Ended	12 Months Ended
		Feb. 29, 2016USD ($)	May. 31, 2015USD ($)	Oct. 31, 2015USD ($)
Requirement
Minimum average adjusted TIER over the six most recent fiscal quarters (ratio)	[1]	1.025	1.025
Minimum adjusted TIER for the most recent fiscal year (ratio)	[1],[2]	1.05	1.05
Maximum ratio of adjusted senior debt to total equity (ratio)	[1]	10	10
Actual
Minimum average adjusted TIER over the six most recent fiscal quarters (ratio)	[1]	1.27	1.28
Minimum adjusted TIER for the most recent fiscal year (ratio)	[1],[2]	1.30	1.30
Maximum ratio of adjusted senior debt to total equity (ratio)	[1]	6.31	5.93
Borrowings outstandings under revised agreements		$ 3,309,020,000	$ 3,127,754,000
Revolving credit agreements
Revolving Credit Agreements
Maximum borrowing capacity		3,310,000,000	3,420,000,000
Increase (Decrease) Line of Credit Facility		45,000,000
Total available	[3]	3,309,000,000	3,419,000,000
Letters of credit outstanding		1,000,000	1,000,000
Actual
Borrowings outstandings under revised agreements		0	0
Letter of Credit Maximum Amount Available		290,000,000
Revolving credit agreements | Three Year Agreement Maturing on December 28, 2017 [Member]
Revolving Credit Agreements
Maximum borrowing capacity		25,000,000	1,720,000,000
Total available	[3]	25,000,000	1,719,855,000
Letters of credit outstanding		$ 0	$ 145,000
Line of Credit Facility Commitment Fee Percentage (percent)	[4]	0.075%
Revolving credit agreements | Three Year Consenting Agreement Maturing on November 19, 2018 [Member]
Revolving Credit Agreements
Maximum borrowing capacity		$ 1,640,000,000
Line of Credit Facility Commitment Fee Percentage (percent)	[4]		0.075%
Revolving credit agreements | Three Year Agreement Maturing on November 19, 2018
Revolving Credit Agreements
Maximum borrowing capacity		1,665,000,000
Total available	[3]	1,639,855,000
Revolving credit agreements | Five Year Agreement Maturing on December 28, 2019 [Member]
Revolving Credit Agreements
Maximum borrowing capacity		45,000,000	$ 1,700,000,000
Total available	[3]	45,000,000	1,699,000,000
Letters of credit outstanding		$ 0	$ 1,000,000
Line of Credit Facility Commitment Fee Percentage (percent)	[4]	0.10%
Revolving credit agreements | Five Year Consenting Agreement Maturing on November 19, 2020 [Member]
Revolving Credit Agreements
Maximum borrowing capacity		$ 1,600,000,000
Letters of credit outstanding		1,000,000
Line of Credit Facility Commitment Fee Percentage (percent)	[4]		0.10%
Revolving credit agreements | Five Year Agreement Maturing on November 19, 2020
Revolving Credit Agreements
Maximum borrowing capacity		1,645,000,000
Total available	[3]	1,599,000,000
CFC | Revolving credit agreements
Revolving Credit Agreements
Maximum borrowing capacity		3,420,000,000
Actual
Letter of Credit Maximum Amount Available		300,000,000
NCSC | Revolving credit agreements
Revolving Credit Agreements
Maximum borrowing capacity		$ 110,000,000		$ 155,000,000
[1]	In addition to the adjustments made to the leverage ratio set forth in “Item 7. MD&A—Non-GAAP Financial Measures,” senior debt excludes guarantees to member systems that have certain investment-grade ratings by Moody’s and S&P. The TIER and debt-to-equity calculations include the adjustments set forth in “Item 7. MD&A—Non-GAAP Financial Measures” and exclude the results of operations and other comprehensive income for CAH.
[2]	We must meet or exceed the required ratios in order to retire patronage capital.
[3]	Reflects amounts available from unaffiliated third parties that are not consolidated by CFC.
[4]	Facility fee determined by CFC’s senior unsecured credit ratings based on the pricing schedules put in place at the inception of the related agreement.

Long-Term Debt - Long-Term Debt

Long-Term Debt - Long-Term Debt Table (Details) - USD ($) $ in Thousands	Feb. 29, 2016	May. 31, 2015
Long-term debt
Long-term debt	$ 17,527,497	$ 16,244,794
Long-Term Debt, excluding subordinated debt
Long-term debt
Long-term debt	17,527,497	16,244,794
Unsecured long-term debt
Long-term debt
Long-term debt	7,951,028	7,563,003
Unsecured medium-term notes
Long-term debt
Unamortized discount	(580)	(706)
Debt issuance costs	(17,190)	(15,335)
Long-term Debt, Gross	3,154,036	3,142,192
Long-term debt	3,136,266	3,126,151
Medium-term notes sold through dealers
Long-term debt
Long-term Debt, Gross	2,793,119	2,749,894
Medium Term Notes Sold to Members
Long-term debt
Long-term Debt, Gross	360,917	392,298
Unsecured notes payable
Long-term debt
Long-term debt	4,814,762	4,436,852
Secured long-term debt
Long-term debt
Long-term debt	9,576,469	8,681,791
Collateral trust bonds
Long-term debt
Unamortized discount	(268,024)	(271,201)
Debt issuance costs	(30,283)	(26,443)
Long-term Debt, Gross	7,547,711	7,052,711
Long-term debt	7,249,404	6,755,067
Secured notes payable
Long-term debt
Long-term debt	2,327,065	1,926,724
Guaranteed Underwriter Program Notes Payable
Long-term debt
Debt issuance costs	(300)	(320)
Long-term Debt, Gross	4,786,627	4,406,785
Long-term debt	4,786,327	4,406,465
Other Unsecured Notes Payable
Long-term debt
Unamortized discount	(527)	(626)
Debt issuance costs	(130)	(155)
Long-term Debt, Gross	29,092	31,168
Long-term debt	28,435	30,387
Federal Agricultural Mortgage Corporation Notes Payable
Long-term debt
Long-term Debt, Gross	2,312,616	1,910,688
Other Secured Notes Payable
Long-term debt
Debt issuance costs	(422)	(493)
Long-term Debt, Gross	14,871	16,529
Long-term debt	$ 14,449	$ 16,036

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($)	Sep. 28, 2015	Oct. 31, 2014	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015	Jul. 31, 2015	May. 31, 2015
Long-term debt
Losses on early extinguishment of debt			$ (333,000)	$ (703,000)	$ (333,000)	$ (703,000)
Collateral trust bonds
Long-term debt
Proceeds from Issuance of Debt					$ 1,450,000,000
Debt Instrument, Interest Rate, Stated Percentage			2.475%		2.475%
Long-term Debt, Gross			$ 7,547,711,000		$ 7,547,711,000			$ 7,052,711,000
Collateral trust 3.05 due 2016 bonds
Long-term debt
Debt Instrument, Interest Rate, Stated Percentage			3.05%		3.05%
Repayments of Debt			$ 300,000,000
Losses on early extinguishment of debt			300,000
Unsecured notes payable | RUS
Long-term debt
Debt Instrument Fee (percent)					0.30%
Unsecured notes payable | Federal Financing Bank
Long-term debt
Proceeds from borrowings under purchase agreement					$ 400,000,000
Unsecured notes payable | Federal Financing Bank | RUS
Long-term debt
Long-term Debt, Gross			4,786,000,000		4,786,000,000			4,407,000,000
Committed loan facilities | Federal Financing Bank | Maximum
Long-term debt
Available under committed loan facilities	$ 250,000,000		350,000,000		350,000,000
Committed loan facilities | Federal Financing Bank | Loan guarantees | RUS
Long-term debt
Maturity period (duration)	20 years
Secured notes payable | Federal Agricultural Mortgage Corporation
Long-term debt
Long-term Debt, Gross			2,313,000,000		2,313,000,000			$ 1,911,000,000
Maximum borrowing capacity			$ 4,500,000,000		$ 4,500,000,000
Proceeds from borrowings under purchase agreement		$ 430,000,000
Secured notes payable | Federal Agricultural Mortgage Corporation new agr.
Long-term debt
Maximum borrowing capacity							$ 300,000,000

Subordinated Deferrable Debt (D

Subordinated Deferrable Debt (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Feb. 29, 2016	May. 31, 2015
Subordinated Deferrable Debt
Subordinated deferrable debt	$ 395,754	$ 395,699
4.75 percent due 2043
Subordinated Deferrable Debt
Subordinated deferrable debt	$ 396,000	$ 396,000
Interest rate (as a percent)	4.75%	4.75%
Debt issuance costs	$ (4,000)	$ (4,000)

Derivative Financial Instrume52

Derivative Financial Instruments (Details) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended
		Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015	May. 31, 2015
Derivative Financial Instruments
Notional amount		$ 10,230,641,000		$ 10,230,641,000		$ 9,625,533,000
Notional balance of derivative assets		3,499,000,000		3,499,000,000		3,448,615,000
Notional balance of derivative liabilities		6,731,641,000		6,731,641,000		6,176,918,000
Derivative assets		104,535,000		104,535,000		115,276,000
Derivative liabilities		(688,998,000)		(688,998,000)		(408,382,000)
Total fair value		(584,463,000)		(584,463,000)		(293,106,000)
Derivative forward value				(290,952,000)	$ (159,832,000)
Derivative gains (losses)		(243,036,000)	$ (98,770,000)	(356,237,000)	(223,209,000)
Notional amount		10,230,641,000		10,230,641,000		9,625,533,000
Interest rate swaps
Derivative Financial Instruments
Notional amount		10,230,641,000		$ 10,230,641,000		$ 9,625,533,000
Weighted-average rate paid (as a percent)				2.29%		2.21%
Weighted-average rate received (as a percent)				1.36%		1.40%
Derivative assets		104,535,000		$ 104,535,000
Derivative liabilities		(688,998,000)		(688,998,000)
Gross amounts of recognized assets/liabilities		104,535,000		104,535,000		$ 115,276,000
Gross amount of derivative asset offset		0		0		0
Net amount of derivative asset presented on the balance sheet		104,535,000		104,535,000		115,276,000
Gross amount of derivative asset's pledged securities not offset		104,535,000		104,535,000		115,276,000
Gross amount of derivative asset's pledged cash not offset		0		0		0
Net amount of derivative asset		0		0		0
Gross amounts of recognized assets/liabilities		688,998,000		688,998,000		408,382,000
Gross amount offset against derivative liability		0		0		0
Net amount of derivative liabilities presented on the balance sheet		688,998,000		688,998,000		408,382,000
Gross amount of derivative liability's right to reclaim securities not offset		104,535,000		104,535,000		115,276,000
Gross amount of derivative liability's right to reclaim cash not offset		0		0		0
Net amount of derivative liabilities		584,463,000		584,463,000		293,106,000
Derivative cash settlements		(22,556,000)	(21,512,000)	(65,285,000)	(63,377,000)
Derivative forward value		(220,480,000)	(77,258,000)	(290,952,000)	(159,832,000)
Derivative gains (losses)		(243,036,000)	$ (98,770,000)	(356,237,000)	$ (223,209,000)
Notional amount		10,230,641,000		10,230,641,000		9,625,533,000
Aggregate fair value of interest rate swaps with rating triggers that were in net liability position		412,000,000		412,000,000
Derivative, Net Asset Position, Aggregate Fair Value		0		0
Pay-fixed swaps
Derivative Financial Instruments
Notional amount		6,731,641,000		$ 6,731,641,000		$ 5,776,533,000
Weighted-average rate paid (as a percent)				2.95%		3.15%
Weighted-average rate received (as a percent)				0.61%		0.28%
Notional amount		6,731,641,000		$ 6,731,641,000		$ 5,776,533,000
Receive-fixed swaps
Derivative Financial Instruments
Notional amount		3,499,000,000		$ 3,499,000,000		$ 3,849,000,000
Weighted-average rate paid (as a percent)				1.01%		0.79%
Weighted-average rate received (as a percent)				2.82%		3.09%
Notional amount		3,499,000,000		$ 3,499,000,000		$ 3,849,000,000
Forward Contracts
Derivative Financial Instruments
Notional amount		40,000,000		40,000,000
Notional amount		40,000,000		40,000,000
Counterparty Group | Interest rate swaps
Derivative Financial Instruments
Notional amount		7,181,720,000		7,181,720,000
Notional amount		7,181,720,000		7,181,720,000
Entity's required payment		(404,213,000)		(404,213,000)
Entity's amount collected		0		0
Entity's net payment		(404,213,000)		(404,213,000)
Counterparty Group | Moody's, A3 Rating Standard Poor's A- rating | Interest rate swaps | Mutual rating trigger falls to
Derivative Financial Instruments
Notional amount	[1]	63,295,000		63,295,000
Notional amount	[1]	63,295,000		63,295,000
Entity's required payment	[1]	(19,794,000)		(19,794,000)
Entity's amount collected	[1]	0		0
Entity's net payment	[1]	(19,794,000)		(19,794,000)
Counterparty Group | Baa1 | Interest rate swaps | Mutual rating trigger falls to
Derivative Financial Instruments
Notional amount		6,556,100,000		6,556,100,000
Notional amount		6,556,100,000		6,556,100,000
Entity's required payment		(348,858,000)		(348,858,000)
Entity's amount collected		0		0
Entity's net payment		(348,858,000)		(348,858,000)
Counterparty Group | Moody's Baa 2 Rating Standard Poor's BBB Rating | Interest rate swaps | Mutual rating trigger falls to
Derivative Financial Instruments
Notional amount	[2]	162,325,000		162,325,000
Notional amount	[2]	162,325,000		162,325,000
Entity's required payment	[2]	(3,955,000)		(3,955,000)
Entity's amount collected	[2]	0		0
Entity's net payment	[2]	(3,955,000)		(3,955,000)
Counterparty Group | Moodys Baa3 Rating Standard Poor's BB Rating | Interest rate swaps | Mutual rating trigger falls to
Derivative Financial Instruments
Notional amount		400,000,000		400,000,000
Notional amount		400,000,000		400,000,000
Entity's required payment		(31,606,000)		(31,606,000)
Entity's amount collected		0		0
Entity's net payment		$ (31,606,000)		$ (31,606,000)
[1]	Rating trigger for CFC falls below A3/A-, while rating trigger for counterparty falls below Baa1/BBB+ by Moody’s or S&P, respectively.
[2]	Rating trigger for CFC falls to or below Baa2/BBB, while rating trigger for counterparty falls to or below Ba2/BB+ by Moody’s or S&P, respectively.

Equity (Details)

Equity (Details) - USD ($) $ in Thousands		1 Months Ended		3 Months Ended		9 Months Ended
		Jul. 31, 2015	Jul. 31, 2014	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015	Nov. 30, 2015	May. 31, 2015	Nov. 30, 2014	May. 31, 2014
Equity
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax					$ (1,091)		$ (1,091)
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments	[1]			$ 1,262,992		$ 1,262,992			$ 1,167,319
Accumulated Other Comprehensive Income (Loss), Net of Tax				4,114	7,119	4,114	7,119	$ 6,585	4,080	$ 6,773	$ 3,649
Stockholders' Equity, Period Increase (Decrease)						(195,000)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest				716,496	884,504	716,496	884,504		911,786		970,374
Net income				(174,382)	(34,196)	(155,775)	(49,496)
Retirement/allocation of net earnings authorized						(39,384)	(39,662)
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax				(2,297)	1,644	589	5,246
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax				43	29	131	29
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax				(217)	(236)	(686)	(714)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent				(2,471)	346	34	3,470
Prior Years Cumulative Derivative Forward Value and Foreign Currency Adjustments				287,077		287,077			172,412
Derivative Forward Value Gain (Loss)	[2]			289,498		289,498			114,665
Total Cumulative Derivative Forward Value and Foreign Currency Adjustments				576,575		576,575			287,077
Retained equity				686,417		686,417			880,242
Stockholders' Equity Attributable to Parent				690,531		690,531			884,322
Noncontrolling interests				25,965		25,965			27,464
Retained Earnings Appropriated Membership Fees [Member]
Equity
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments				972		972			976
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Equity
Accumulated Other Comprehensive Income (Loss), Net of Tax				4,523	4,885	4,523	4,885	6,820	3,934	3,241	(361)
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax				(2,297)	1,644	589	5,246
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent				(2,297)	1,644	589	5,246
Cooperative educational fund
Equity
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments				1,123		1,123			1,767
Membership Fees and Educational Fund
Equity
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments				2,095		2,095			2,743
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest				2,095	2,113	2,095	2,113		2,743		2,751
Patronage Capital Allocated
Equity
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments				501,302		501,302			501,731
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest				629,596	590,677	629,596	590,677		668,980		630,340
Retirement/allocation of net earnings authorized						(39,384)	(39,662)
Members’ Capital Reserve
Equity
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments				629,596		629,596			668,980
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest				501,302	485,448	501,302	485,448		501,731		485,447
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Equity
Accumulated Other Comprehensive Income (Loss), Net of Tax				4,685	5,606	4,685	5,606	4,902	5,371	5,842	6,320
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax				(217)	(236)	(686)	(714)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent				(217)	(236)	(686)	(714)
Accumulated Unrealized Losses on Foreclosed Assets [Member]
Equity
Accumulated Other Comprehensive Income (Loss), Net of Tax				(4,248)	(2,310)	(4,248)	(2,310)	(4,248)	(4,248)	$ (2,310)	$ (2,310)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent				0	0	0	0
Accumulated Defined Benefit Plans Adjustment, Net Transition Attributable to Parent [Member]
Equity
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax					(1,091)		(1,091)
Accumulated Other Comprehensive Income (Loss), Net of Tax				(846)	(1,062)	(846)	(1,062)	$ (889)	(977)
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax				43	29	131	29
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent				43	$ (1,062)	131	$ (1,062)
Retained Earnings Excluding Derivative Forward Unappropriated [Member]
Equity
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments	[1]			$ 129,999		$ 129,999			$ (6,135)
CFC | Cooperative educational fund | Authorized Allocations
Equity
Allocation of net earnings		$ 1,000
CFC | Patronage Capital Allocated | Authorized Allocations
Equity
Allocation of net earnings		78,000
Retirement of allocated net earnings (percentage)			50.00%
CFC | Members’ Capital Reserve
Equity
Allocation of net earnings		$ 16,000
[1]	Excludes derivative forward value.
[2]	Represents the derivative forward value income (loss) recorded by CFC for the year-to-date period.

Guarantees (Details)

Guarantees (Details) - USD ($) $ in Thousands	9 Months Ended
	Feb. 29, 2016	May. 31, 2015
Guarantees
Guarantee Liability Recorded	$ 18,000	$ 20,000
Guaranty Liabilities Contingent	1,000	1,000
Total	915,359	986,500
Amount of unsecured guarantees	$ 320,000	$ 434,000
Unsecured guarantees as a percentage of total guarantees (percent)	35.00%	44.00%
Long-term variable-rate bonds
Guarantees
Value of bonds issued under liquidity provider obligations	$ 483,000
CFC
Guarantees
Total	895,116	$ 952,875
CFC | Distribution
Guarantees
Total	132,391	172,104
CFC | Power supply
Guarantees
Total	745,640	763,746
CFC | Statewide and associate
Guarantees
Total	17,085	17,025
RTFC
Guarantees
Total	1,574	1,574
NCSC
Guarantees
Total	18,669	32,051
Financial guarantees | Long-term tax-exempt bonds
Guarantees
Total	476,860	489,520
Financial guarantees | Long-term fixed-rate bonds
Guarantees
Total	70,000
Maximum potential exposure	99,000
Financial guarantees | Long-term variable-rate bonds
Guarantees
Total	407,000	418,000
Letters of credit | Master letter of credit
Guarantees
Maximum additional amount potentially required to be issued	85,000
Letters of credit | Letters of credit
Guarantees
Total	324,710	382,233
Letters of credit | Letters of credit, secured
Guarantees
Amount of guarantee secured	119,000
Letters of credit | Adjustable and floating-rate tax-exempt bonds
Guarantees
Total	76,000
Other guarantees
Guarantees
Total	113,789	$ 114,747
Maximum potential exposure	$ 115,000

Guarantees - Guarantee Liabilit

Guarantees - Guarantee Liability (Details 2) - USD ($) $ in Millions	Feb. 29, 2016	May. 31, 2015
Guarantee Liability
Guarantee Liability Recorded	$ 18	$ 20
Guaranty Liabilities Contingent	1	1
Non-contingent guarantee liability	$ 17	$ 19

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015	May. 31, 2015
Fair value of assets and liabilities
Unrealized gains on securities		$ (2,297)	$ 1,644	$ 589	$ 5,246
Derivative assets		104,535		104,535		$ 115,276
Derivative liabilities		688,998		688,998		408,382
Investment securities available for sale, at fair value		85,061		85,061		84,472
Deferred compensation investments		3,953		3,953		4,294
Investments in common and preferred stock		85,061		85,061		84,472
Level 1
Fair value of assets and liabilities
Deferred compensation investments		3,953		3,953		4,294
Level 2
Fair value of assets and liabilities
Derivative assets		104,535		104,535		115,276
Derivative liabilities		688,998		688,998		408,382
Recurring basis | Level 1
Fair value of assets and liabilities
Investment securities available for sale, at fair value		85,061		85,061		84,472
Deferred compensation investments		3,953		3,953		4,294
Non-recurring basis | Level 3
Fair value of assets and liabilities
Non-performing loans, net of specific reserves	[1]	8,527		8,527		0
Total losses	[1]	(1,890)	$ 0	(3,901)	$ (943)
Interest rate swaps
Fair value of assets and liabilities
Derivative assets		104,535		104,535
Derivative liabilities		688,998		688,998
Interest rate swaps | Level 2
Fair value of assets and liabilities
Derivative assets		104,535		104,535		115,276
Derivative liabilities		688,998		688,998		408,382
Fair value
Fair value of assets and liabilities
Derivative assets		104,535		104,535		115,276
Derivative liabilities		$ 688,998		$ 688,998		$ 408,382
[1]	Excludes impaired loans for which there is no specific allowance recorded.

Fair Value of Financial Instr57

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Feb. 29, 2016	May. 31, 2015	Feb. 28, 2015	May. 31, 2014
Fair value of Financial Instruments
Cash and cash equivalents	$ 299,024	$ 248,836	$ 298,771	$ 338,715
Assets:
Restricted cash	4,268	485
Investment securities available for sale, at fair value	85,061	84,472
Deferred compensation investments	3,953	4,294
Loans to members, net	23,106,181	21,435,327	$ 21,158,978
Accrued interest and other receivables	179,212	197,828
Debt service reserve funds	17,151	25,602
Derivative instruments	104,535	115,276
Short-term debt	3,309,020	3,127,754
Liabilities:
Long-term debt	17,527,497	16,244,794
Accrued interest payable	185,758	123,697
Guaranty Liabilities Contingent and Noncontingent	18,155	19,917
Derivative instruments	688,998	408,382
Subordinated deferrable debt	395,754	395,699
Members Subordinated Certificates, Total	1,444,515	1,505,420
Level 1
Assets:
Cash and cash equivalents	299,024	248,836
Restricted cash	4,268	485
Investments	85,061	84,472
Deferred compensation investments	3,953	4,294
Accrued interest and other receivables	179,212	197,828
Debt service reserve funds	17,151	25,602
Liabilities:
Short-term debt	1,499,503	1,494,131
Accrued interest payable	185,758	123,697
Level 2
Assets:
Time deposits	340,000	485,000
Derivative instruments	104,535	115,276
Liabilities:
Short-term debt	1,809,014	1,633,410
Long-term debt	11,311,512	10,878,302
Derivative instruments	688,998	408,382
Level 3
Assets:
Loans to members, net	23,424,554	21,961,048
Liabilities:
Short-term debt	0	0
Long-term debt	7,299,684	6,477,921
Guarantee liability	20,144	22,545
Members Subordinated Certificates, At Fair Value	1,444,539	1,505,444
Subordinated deferrable debt | Level 2
Liabilities:
Subordinated deferrable debt	389,220	406,000
Subordinated certificates
Liabilities:
Members Subordinated Certificates, Total	1,444,515	1,505,420
Fair value
Assets:
Cash and cash equivalents	299,024	248,836
Restricted cash	4,268	485
Investments	85,061	84,472
Time deposits	340,000
Loans to members, net	23,424,554	21,961,048
Accrued interest and other receivables	179,212	197,828
Debt service reserve funds	17,151	25,602
Derivative instruments	104,535	115,276
Short-term debt		3,127,541
Liabilities:
Short-term debt	3,308,517
Long-term Debt, Fair Value	18,611,196	17,356,223
Accrued interest payable	185,758	123,697
Guarantee liability	20,144	22,545
Derivative instruments	688,998	408,382
Fair value | Subordinated deferrable debt
Liabilities:
Subordinated deferrable debt	389,220	406,000
Fair value | Subordinated certificates
Liabilities:
Members Subordinated Certificates, At Fair Value	1,444,539	1,505,444
Recurring basis | Level 1
Assets:
Investment securities available for sale, at fair value	85,061	84,472
Deferred compensation investments	3,953	4,294
Interest rate swaps
Assets:
Fair value of derivative assets	104,535	115,276
Derivative instruments	104,535
Liabilities:
Derivative liabilities	688,998	408,382
Derivative instruments	688,998
Interest rate swaps | Level 2
Assets:
Derivative instruments	104,535	115,276
Liabilities:
Derivative instruments	$ 688,998	$ 408,382

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Feb. 29, 2016		Feb. 28, 2015	Feb. 29, 2016		Feb. 28, 2015	Nov. 30, 2015	May. 31, 2015		Nov. 30, 2014	May. 31, 2014
Segment Information
Losses on early extinguishment of debt	$ (333)		$ (703)	$ (333)		$ (703)
Statement of operations:
Interest income	253,633		238,740	756,074		711,266
Interest expense	(171,189)		(156,850)	(504,013)		(471,677)
Net interest income	82,444		81,890	252,061		239,589
Provision for loan losses	1,735		(2,304)	(4,067)		3,475
Net interest income after provision for loan losses	84,179		79,586	247,994		243,064
Non-interest income:
Fee and other income	5,604		5,020	17,336		19,249
Derivative losses	(243,036)		(98,770)	(356,237)		(223,209)
Results of operations from foreclosed assets	1,472		(1,369)	1,605		(33,059)
Total non-interest income	(235,960)		(95,119)	(337,296)		(237,019)
Non-interest expense:
General and administrative expenses	(22,352)		(18,008)	(65,418)		(54,788)
Loss Contingency Accrual, Provision			703
Other	(509)		(7)	(875)		50
Total non-interest expense	(23,194)		(18,718)	(66,626)		(55,441)
Income (loss) before income taxes	(174,975)		(34,251)	(155,928)		(49,396)
Income tax benefit (expense)	593		55	153		(100)
Net loss	(174,382)		(34,196)	(155,775)		(49,496)
Assets:
Total loans outstanding	23,134,215	[1],[2]	21,202,399	23,134,215	[1],[2]	21,202,399		$ 21,459,220	[1],[2]
Deferred origination costs	9,884	[1]	9,693	9,884	[1]	9,693		9,797	[1]
Less: Allowance for loan losses	(37,918)		(53,114)	(37,918)		(53,114)	$ (39,600)	(33,690)		$ (50,757)	$ (56,429)
Loans to members, net	23,106,181		21,158,978	23,106,181		21,158,978		21,435,327
Other assets	1,286,844		1,489,943	1,286,844		1,489,943
Total assets	24,393,025		22,648,921	24,393,025		22,648,921		$ 22,846,059
CFC
Segment Information
Losses on early extinguishment of debt	(333)			(333)		(703)
Statement of operations:
Interest income	250,814		235,616	747,490		701,924
Interest expense	(170,872)		(156,489)	(503,061)		(470,635)
Net interest income	79,942		79,127	244,429		231,289
Provision for loan losses	1,735		(2,304)	(4,067)		3,475
Net interest income after provision for loan losses	81,677		76,823	240,362		234,764
Non-interest income:
Fee and other income	5,341		4,928	16,020		18,800
Derivative losses	(240,363)		(97,424)	(352,153)		(219,656)
Results of operations from foreclosed assets	1,472		(1,369)	1,605		(33,059)
Total non-interest income	(233,550)		(93,865)	(334,528)		(233,915)
Non-interest expense:
General and administrative expenses	(20,266)		(16,227)	(58,419)		(49,479)
Loss Contingency Accrual, Provision			703
Other	(509)		(7)	(875)		50
Total non-interest expense	(21,108)		(16,937)	(59,627)		(50,132)
Income (loss) before income taxes	(172,981)		(33,979)	(153,793)		(49,283)
Net loss	(172,981)		(33,979)	(153,793)		(49,283)
Assets:
Total loans outstanding	23,095,053		21,187,603	23,095,053		21,187,603
Deferred origination costs	9,884		9,693	9,884		9,693
Less: Allowance for loan losses	(37,918)		(53,114)	(37,918)		(53,114)
Loans to members, net	23,067,019		21,144,182	23,067,019		21,144,182
Other assets	1,270,625		1,448,655	1,270,625		1,448,655
Total assets	24,337,644		22,592,837	24,337,644		22,592,837
Other
Statement of operations:
Interest income	11,367		11,791	34,693		34,926
Interest expense	(8,865)		(9,028)	(27,061)		(26,626)
Net interest income	2,502		2,763	7,632		8,300
Net interest income after provision for loan losses	2,502		2,763	7,632		8,300
Non-interest income:
Fee and other income	984		922	3,898		2,653
Derivative losses	(2,673)		(1,346)	(4,084)		(3,553)
Total non-interest income	(1,689)		(424)	(186)		(900)
Non-interest expense:
General and administrative expenses	(2,341)		(2,024)	(7,762)		(6,039)
Other	(466)		(587)	(1,819)		(1,474)
Total non-interest expense	(2,807)		(2,611)	(9,581)		(7,513)
Income (loss) before income taxes	(1,994)		(272)	(2,135)		(113)
Income tax benefit (expense)	593		55	153		(100)
Net loss	(1,401)		(217)	(1,982)		(213)
Assets:
Total loans outstanding	1,055,203		1,117,252	1,055,203		1,117,252
Loans to members, net	1,055,203		1,117,252	1,055,203		1,117,252
Other assets	120,001		157,122	120,001		157,122
Total assets	1,175,204		1,274,374	1,175,204		1,274,374
Elimination
Statement of operations:
Interest income	(8,548)		(8,667)	(26,109)		(25,584)
Interest expense	8,548		8,667	26,109		25,584
Non-interest income:
Fee and other income	(721)		(830)	(2,582)		(2,204)
Derivative losses	0		0	0		0
Total non-interest income	(721)		(830)	(2,582)		(2,204)
Non-interest expense:
General and administrative expenses	255		243	763		730
Other	466		587	1,819		1,474
Total non-interest expense	721		830	2,582		2,204
Assets:
Total loans outstanding	(1,016,041)		(1,102,456)	(1,016,041)		(1,102,456)
Loans to members, net	(1,016,041)		(1,102,456)	(1,016,041)		(1,102,456)
Other assets	(103,782)		(115,834)	(103,782)		(115,834)
Total assets	$ (1,119,823)		$ (1,218,290)	$ (1,119,823)		$ (1,218,290)
[1]	Includes nonperforming and restructured loans.
[2]	Represents the unpaid principal balance excluding deferred loan origination costs.