Short-Term Debt and Credit Arrangements (Tables)

9 Months Ended

Feb. 29, 2016

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

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⁽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

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⁽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

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⁽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.