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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.