Atel Capital Equipment Fund Vii 10-Q 12 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 31, 2015
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Entity Registrant Name	ATEL CAPITAL EQUIPMENT FUND VII LP
Entity Central Index Key	1,019,542
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Units Outstanding		14,985,550

Balance Sheets

Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 354	$ 261
Accounts receivable, net of allowance for doubtful accounts of $0 as of September 30, 2015 and $8 as of December 31, 2014	158	186
Investments in equipment and leases, net of accumulated depreciation of $32,916 as of September 30, 2015 and $32,996 as of December 31, 2014	5,239	5,378
Prepaid expenses and other assets	55	17
Total assets	5,806	5,842
Accounts payable and accrued liabilities:
General Partner	56	114
Other	89	326
Unearned operating lease income	36	26
Total liabilities	$ 181	$ 466
Commitments and contingencies
Partners' capital:
General Partner
Limited Partners	$ 5,625	$ 5,376
Total Partners' capital	5,625	5,376
Total liabilities and Partners' capital	$ 5,806	$ 5,842

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Balance Sheets [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 0	$ 8
Investments in equipment and leases, accumulated depreciation	$ 32,916	$ 32,996

Statements of Operations

Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Leasing activities:
Operating leases	$ 572	$ 618	$ 1,723	$ 1,831
(Loss) gain on sales of assets	(1)	3	5	48
Other	49	3	49	4
Total revenues	620	624	1,777	1,883
Expenses:
Depreciation of operating lease assets	42	33	126	101
Cost reimbursements to General Partner	96	43	321	138
Equipment and incentive management fees to General Partner	23	15	66	43
Railcar and equipment maintenance	170	260	653	638
Professional fees	15	42	99	122
Insurance	27	47	87	113
Outside services	23	19	76	70
Other management fees	24	25	72	73
Equipment storage	22	8	62	16
Franchise fees and state taxes		19		76
Freight and shipping	4	6	16	15
(Reversal of) provision for credit losses	(2)	1	(8)	(4)
Property taxes		1	6	8
Postage	2		10	7
Printing and photocopying	5		16	16
Other	(125)	29	(74)	87
Total expenses	326	548	1,528	1,519
Net income	$ 294	$ 76	$ 249	$ 364
Net income:
General Partner
Limited Partners	$ 294	$ 76	$ 249	$ 364
Net income	$ 294	$ 76	$ 249	$ 364
Net income per Limited Partnership Unit	$ 0.02	$ 0.01	$ 0.02	$ 0.02
Weighted average number of Units outstanding	14,985,550	14,985,550	14,985,550	14,985,550

Statements of Changes in Partne

Statements of Changes in Partners' Capital - USD ($) $ in Thousands	Limited Partner [Member]	General Partner [Member]	Total
Beginning Balance (in units) at Dec. 31, 2013	14,985,550
Beginning Balance at Dec. 31, 2013	$ 6,929		$ 6,929
Distributions to Limited Partners	(1,874)		(1,874)
Distributions to General Partner		$ (152)	(152)
Net income	$ 321	$ 152	473
Ending Balance (in units) at Dec. 31, 2014	14,985,550
Ending Balance at Dec. 31, 2014	$ 5,376		5,376
Net income	$ 249		249
Ending Balance (in units) at Sep. 30, 2015	14,985,550
Ending Balance at Sep. 30, 2015	$ 5,625		$ 5,625

Statements of Changes in Partn6

Statements of Changes in Partners' Capital (Parenthetical)	12 Months Ended
	Dec. 31, 2014$ / shares
Statements of Changes in Partners' Capital [Abstract]
Distributions to Limited Partners, per unit	$ 0.13

Statements of Cash Flows

Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Operating activities:
Net income	$ 294	$ 76	$ 249	$ 364
Adjustments to reconcile net (loss) income to cash provided by operating activities:
Loss (gain) on sales of assets	1	(3)	(5)	(48)
Depreciation of operating lease assets	42	33	126	101
(Reversal of) provision for credit losses	(2)	1	(8)	(4)
Changes in operating assets and liabilities:
Accounts receivable	(1)	(2)	36	11
Prepaid expenses and other assets	(39)	(4)	(38)	1
Accounts payable, General Partner	(76)	(43)	(58)	(147)
Accounts payable, Other	(215)	23	(237)	(45)
Unearned lease income	10	7	10	6
Net cash provided by operating activities	14	88	75	239
Investing activities:
Proceeds from sales of lease assets	6	9	18	147
Net cash provided by investing activities	$ 6	$ 9	$ 18	$ 147
Financing activities:
Net cash provided by financing activities
Net increase in cash and cash equivalents	$ 20	$ 97	$ 93	$ 386
Cash and cash equivalents at beginning of period	334	1,951	261	1,662
Cash and cash equivalents at end of period	354	$ 2,048	354	2,048
Supplemental disclosures of cash flow information:
Cash paid during the period for taxes	$ 1		$ 27	$ 74

Organization and Limited Partne

Organization and Limited Partnership Matters	9 Months Ended
	Sep. 30, 2015
Organization and Limited Partnership Matters [Abstract]
Organization and Limited Partnership Matters	1. Organization and Limited Partnership matters: ATEL Capital Equipment Fund VII, L.P. (the “Partnership” or the “Fund”) was formed under the laws of the State of California on May 17, 1996 for the purpose of acquiring equipment to engage in equipment leasing and sales activities, primarily in the United States. The Partnership may continue until December 31, 2017 . The General Partner of the Partnership is ATEL Financial Services, LLC (“AFS”), a California limited liability company. Prior to converting to a limited liability company structure, AFS was formerly known as ATEL Financial Corporation. The Partnership conducted a public offering of 15,000,000 Units of Limited Partnership Interest (“Units”), at a price of $ 10 per Unit. On January 7, 1997, subscriptions for the minimum number of Units ( 120,000 , $ 1.2 million) had been received (excluding subscriptions from Pennsylvania investors) and AFS requested that the subscriptions be released to the Partnership. On that date, the Partnership commenced operations in its primary business (acquiring equipment to engage in equipment leasing and sales activities) . Gross contributions in the amount of $ 150 million ( 15,000,000 units) were received as of November 27, 1998, exclusive of $ 500 of i nitial Partners’ capital investment and $ 100 of AFS’ capital investment. The offering was terminated on November 27, 1998. As of September 30, 2015 , 14,985,550 Units were issued and outstanding . The Partnership’s principal objectives have been to invest in a diversified portfolio of equipment that (i) preserves, protects and returns the Partnership’s invested capital; (ii) generates regular distributions to the partners of cash from operations and cash from sales or refinancing, with any balance remaining after certain minimum distributions to be used to purchase additional equipment during the reinvestment period (“Reinvestment Period”) (defined as six full years following the year the offering was terminated), which ended December 31, 2004 and (iii) provides additional distributions following the Reinvestment Period and until all equipment has been sold. The Partnership is governed by its Limited Partnership Agreement (“Partnership Agreement”). Pursuant to the Partnership Agreement, AFS receives compensation and reimbursements for services rendered and costs incurred on behalf of the Partnership ( See Note 5 ). The Partnership is required to maintain reasonable cash reserves for working capital, the repurchase of Units and contingencies. The repurchase of Units is solely at the discretion of AFS. As of September 30, 2015, the Partnership continues in the liquidation phase of its life cycle as defined in the Partnership Agreement. The General Partner intends to transfer the net assets of the Partnership to a liquidating trust during the fourth quarter of 2015. These unaudited interim financial statements should be read in conjunction with the financial statements and notes thereto contained in the report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of significant accounting policies: Basis of presentation: The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the General Partner, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30 , 2015 are not necessarily indicative of the results to be expected for the full year . Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results from operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying unaudited financial statements, the General Partner has reviewed events that have occurred after September 30 , 2015, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, or adjustments thereto. Use of estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term, expected future cash flows used for impairment analysis purposes, and determination of the allowance for doubtful accounts. Segment reporting: The Partnership is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Partnership operates in one reportable operating segment in the United States. However, certain of the Partnership’s lessee customers may have international operations. In these instances, the Partnership is aware that certain equipment, primarily rail and transportation, may periodically exit the country. However, these lessee customers are US-based, and it is impractical for the Partnership to track, on an asset-by-asset and day-by-day basis, where these assets are deployed. The primary geographic regions in which the Partnership sought leasing opportunities were North America and Europe. The table below summarizes geographic information relating to the sources, by nation, of the Partnership’s total revenues for the nine months ended September 30, 2015 and 2014 and long-lived tangible assets as of September 30, 2015 and December 31, 2014 (dollars in thousands): For The Nine Months Ended September 30, 2015 % of Total 2014 % of Total Revenue United States $ $ Canada Total International Total $ $ As of September 30, As of December 31, 2015 % of Total 2014 % of Total Long-lived assets United States $ $ Canada Total International Total $ $ Per Unit data: Net income and distributions per Unit are based upon the weighted average number of Limited Partnership Units outstanding during the period. Recent accounting pronouncements: In May 2014 , the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts from Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company evaluated the impact of the new standard on its financial statements and has determined that such impact is virtually non-existent as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues. In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements – Going Concern (subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU-2014-15”). The new standard provides guidance relative to management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Management does not expect the adoption of ASU 2014-15 to have a material impact on the Company’s financial statements or related disclosures .

Allowance for Credit Losses

Allowance for Credit Losses	9 Months Ended
	Sep. 30, 2015
Allowance for Credit Losses [Abstract]
Allowance for Credit Losses	3 . Allowance for credit losses: The Partnership’s allowance for credit losses totaled $8 thousand as of December 31, 2014, all of which were related to delinquent operating lease receivables. Such allowance was reversed in its entirety during the first nine months of 2015.

Investment in Equipment and Lea

Investment in Equipment and Leases	9 Months Ended
	Sep. 30, 2015
Investments in Equipment and Leases [Abstract]
Investment in Equipment and Leases	4 . Investment in equipment and leases , net : The Partnership’s investments in equipment and leases consist of the following (in thousands): Balance December 31, 2014 Reclassifications & Additions / Dispositions Depreciation/ Amortization Expense or Amortization of Leases Balance September 30, 2015 Net investment in operating leases $ $ $ $ Assets held for sale or lease, net - Total $ $ $ $ Impairment of investments in leases and assets held for sale or lease: Recorded values of the Partnership’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Partnership uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the Partnership may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances. As a result of these reviews, management determined that n o impairment losses existed during the three and nine months ended September 30, 2015 and 2014. The Partnership utilizes a straight line depreciation method for equipment in all of the categories currently in its portfolio of operating lease transactions . Depreciation expense on the Partnership’s equipment was approximately $ 42 thousand and $ 33 thousand for the respective three months ended September 30 , 201 5 and 201 4, and $126 thousand and $101 thousand for the respective nine months ended September 30, 2015 and 2014. All of the remaining property subject to leases was acquired in the years 1997 to 1998. Operating leases: Property on operating leases consists of the following (in thousands): Balance December 31, 2014 Additions Reclassifications or Dispositions Balance September 30, 2015 Transportation $ $ - $ $ Materials handling - - - Less accumulated depreciation Total $ $ $ $ The average estimated residual value for assets on operating leases was 13% of the assets’ original cost at both September 30 , 201 5 and December 31, 2014. There were no operating leases in non-accrual status at September 30, 2015 and December 31, 2014. The Partnership earns revenues from its marine vessels and certain lease assets based on utilization of such assets or through fixed term leases. Contingent rentals (i.e., short-term, operating charter hire payments) and the associated expenses are recorded when earned and/or incurred. The revenues associated with these rentals are included as a component of operating lease r evenues and totaled $ 6 thousand and $ 12 thousand for the respective three months ended September 30 , 2015 and 2014, and $18 thousand and $24 thousand for the respective nine months ended September 30, 2015 and 2014. At September 30 , 201 5 , the aggregate amounts of future minimum lease payments are as follows (in thousands): Operating Leases Three months ending December 31, 2015 $ Year ending December 31, 2016 $ As indicated in Note 1, the Partnership is scheduled to terminate no later than December 31, 2017. In the event that any assets remain at such date, the Fund will venture to dispose of such assets in an orderly manner within a reasonable timeframe. The useful lives for each category of lease assets in the Partnership’s portfolio is reviewed at a minimum of once per quarter. As of September 30 , 2015, the respective useful lives of each category of lease assets in the Partnership ’s portfolio are as follows (in years): Equipment category Useful Life Transportation 35 -40 Materials handling 7 -10

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	5 . Related party transactions: The terms of the Partnership Agreement provide that AFS and/or affiliates are entitled to receive certain fees for equipment management and resale and for management of the Partnership. The Partnership Agreement allows for the reimbursement of costs incurred by AFS in providing administrative services to the Partnership. Administrative services provided include Partnership accounting, investor relations, legal counsel and lease and equipment documentation. AFS is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as disposition of equipment. The Partnership will be liable for certain future costs to be incurred by AFS to manage the administrative services provided to the Partnership. Each of ATEL Leasing Corporation (“ALC”) and AFS is a wholly-owned subsidiary of ATEL Capital Group and performs services for the Partnership. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; investor relations, communications services and general administrative services are performed by AFS. Cost reimbursements to the General Partner are based on its costs incurred in performing administrative services for the Partnership. These costs are allocated to each managed entity based on certain criteria such as total assets, number of investors or contributed capital based upon the type of cost incurred, subject to limitations as described below. Incentive management fees are computed as 4.0 % of distributions of cash from operations, as defined in the Partnership Agreement and equipment management fees are computed as 3.5 % of gross revenues from operating leases, as defined in the Partnership Agreement plus 2.0 % of gross revenues from full payout leases, as defined in the Partnership Agreement. During the three and nine months ended September 30 , 2015 and 2014 , AF S and/or affiliates earned fees and billed for reimbursements of costs and expenses pursuant to the Partnership Agreement as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Cost reimbursements to General Partner $ $ $ $ Equipment and incentive management fees to General Partner $ $ $ $ The Fund’s Limited Partnership Agreement places an annual and cumulative limit for cost reimbursements to AFS and/or its affiliates. Any reimbursable costs incurred by AFS and/or affiliates during the year exceeding the annual and/or cumulative limits cannot be reimbursed in the current year, though such costs may be reimbursable in future years to the extent such amounts may be payable if within the annual and cumulative limits in such future years. The Fund is a finite life and self-liquidating entity, and AFS and its affiliates have no recourse against the Fund for the amount of any unpaid excess reimbursable administrative expenses. The Fund will continue to require administrative services from AFS and its affiliates through the end of its term, and will therefore continue to incur reimbursable administrative expenses in each year. The Fund has determined that payment of any amounts in excess of the annual and cumulative limits is not probable, and the date any portion of such amount may be paid, if ever, is uncertain. When the Fund completes its liquidation stage and terminates, any unpaid amount will expire unpaid, with no claim by AFS or its affiliates against any liquidation proceeds or any party for the unpaid balance. For the year ending December 31, 2015, it is not anticipated that the amount of reimbursable expenses billed to the Fund will exceed either the annual or the cumulative limitations. Such is reflective of the continued diminishing Fund asset base over which reimbursements are calculated.

Gain Contingencies

Gain Contingencies	9 Months Ended
	Sep. 30, 2015
Gain Contingencies [Abstract]
Gain Contingencies	6 . Gain contingencies: The Partnership’s vessel activity in the Gulf of Mexico was severely impacted by the British Petroleum (“BP”) “Deep Water Horizon” oil spill of 2010 which severely adversely impacted charter activity in the Gulf region. BP established a program to compensate those businesses and individuals suffering economic hardship and loss as a result of the Deep Water Horizon oil spill. The Partnership submitted a claim to the BP program administrator seeking an approximate $ 2.8 million for loss of revenues during the period of the vessel’s diminished activity commencing at the time of the oil spill and continuing through 2010. The BP claim administrator denied the Partnership’s claim on the basis that the Partnership suffered damages as a result of the President’s moratorium on oil drilling subsequent to the Deep Water Horizon accident. The Partnership believes its claim continues to be of merit, and has opted out of the BP claims fund, and is pursuing a claim in a collective action with other similarly situated plaintiffs. Currently, the amount of any compensation or award from BP cannot be determine d . As such, the potential for compensation or award has not been recorded on the Partnership’s books and records.

Guarantees

Guarantees	9 Months Ended
	Sep. 30, 2015
Guarantees [Abstract]
Guarantees	7. Guarantees: The Partnership enters into contracts that contain a variety of indemnifications. The Partnership’s maximum exposure under these arrangements is unknown. However, the Partnership has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. The General Partner knows of no facts or circumstances that would make the Partnership’s contractual commitments outside standard mutual covenants applicable to commercial transactions between businesses. Accordingly, the Partnership believes that these indemnification obligations are made in the ordinary course of business as part of standard commercial and industry practice, and that any potential liability under the Partnership’s similar commitments is remote. Should any such indemnification obligation become payable, the Partnership would separately record and/or disclose such liability in accordance with GAAP.

Partners' Capital

Partners' Capital	9 Months Ended
	Sep. 30, 2015
Partners' capital:
Partners' Capital	8 . Partners’ capital: As of September 30, 2015 and December 31, 2014 , 14,985,550 Units were issued and outstanding . The Partnership was authorized to issue up to 15,000,0 0 0 Units, in addition to the 50 Units issued to the initial Partners. The Partnership has the right, exercisable at the General Partner’s discretion, but not the obligation, to repurchase Units of a Unitholder who ceases to be a U.S. Citizen, for a price equal to 100 % of the holder’s capital account. The Partnership is otherwise permitted, but not required, to repurchase Units upon a holder’s r equest. The repurchase of Fund U nits is made in accordance with Section 13 of the Amended and Restated Agreement of Limited Partnership. The repurchase would be at the discretion of the General Partner on terms it determines to be appropriate under given circumstances, in the event that the General Partner deems such repurchase to be in the best interest of the Partnership; provided, the Partnership is never required to repurchase any Units. Upon the repurchase of any Units by the Fund, the tendered Units are cancelled. Units repurchased in prior periods were repurchased at amounts representing the original investment less cumulative distributions made to the Unitholder with respect to the Units. All Units repurchased during a quarter are deemed to be repurchased effective the last day of the preceding quarter, and are not deemed to be outstanding during, or entitled to a llocations of net income, net loss or distributions for the quarter in which such repurchase occurs. As defined in the Par tnership Agreement, the Partnership’s Net Income, Net Losses, and Distributions are to be allocated 92.5 % to the Limited Partners and 7.5 % to AFS. As defined in the Partnership Agreement, A vailable Cash from Operations shall be distributed as follows: First, Distributions of Cash from Operations shall be 88.5 % to the Limited Partners, 7.5 % to AFS and 4 % to AFS or its affiliate designated as the recipient of the Incentive Management Fee, until the Limited Partners have received Aggregate Distributions in an amount equal to their Original Invested Capital, as defined, plus a 10 % per annum cumulative (compounded daily) return on their Adjusted Invested Capital, as defined in the Partnership Agreement. Second, 85 % to the Limited Partners, 7.5 % to AFS and 7.5 % to AFS or its affiliate designated as the recipient of the Incentive Management Fee. As defined in the Partnership Agreement, A vailable Cash from Sales or Refinancing are to be distributed as follows: First, Distributions of Sales or Refinancing shall be 92.5 % to the Limited Partners and 7.5 % to AFS, until the Limited Partners have received Aggregate Distributions in an amount equal to their Original Invested Capital, as defined, plus a 10 % per annum cumulative (compounded daily) return on their Adjusted Invested Capital. Second, 85 % to the Limited Partners, 7.5 % to AFS and 7.5 % to AFS or its affiliate designated as the recipient of the Incentive Management Fee. There were no distributions declared or paid during the three and nine months ended September 30 , 2015 and 2014.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policy)	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of presentation: The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the General Partner, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30 , 2015 are not necessarily indicative of the results to be expected for the full year . Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results from operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying unaudited financial statements, the General Partner has reviewed events that have occurred after September 30 , 2015, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, or adjustments thereto.
Use of Estimates	Use of estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term, expected future cash flows used for impairment analysis purposes, and determination of the allowance for doubtful accounts.
Segment Reporting	Segment reporting: The Partnership is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Partnership operates in one reportable operating segment in the United States. However, certain of the Partnership’s lessee customers may have international operations. In these instances, the Partnership is aware that certain equipment, primarily rail and transportation, may periodically exit the country. However, these lessee customers are US-based, and it is impractical for the Partnership to track, on an asset-by-asset and day-by-day basis, where these assets are deployed. The primary geographic regions in which the Partnership sought leasing opportunities were North America and Europe. The table below summarizes geographic information relating to the sources, by nation, of the Partnership’s total revenues for the nine months ended September 30, 2015 and 2014 and long-lived tangible assets as of September 30, 2015 and December 31, 2014 (dollars in thousands): For The Nine Months Ended September 30, 2015 % of Total 2014 % of Total Revenue United States $ $ Canada Total International Total $ $ As of September 30, As of December 31, 2015 % of Total 2014 % of Total Long-lived assets United States $ $ Canada Total International Total $ $
Per Unit Data	Per Unit data: Net income and distributions per Unit are based upon the weighted average number of Limited Partnership Units outstanding during the period.
Recent Accounting Pronouncements	Recent accounting pronouncements: In May 2014 , the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts from Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company evaluated the impact of the new standard on its financial statements and has determined that such impact is virtually non-existent as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues. In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements – Going Concern (subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU-2014-15”). The new standard provides guidance relative to management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Management does not expect the adoption of ASU 2014-15 to have a material impact on the Company’s financial statements or related disclosures .

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies [Abstract]
Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue and Long-Lived Assets	The table below summarizes geographic information relating to the sources, by nation, of the Partnership’s total revenues for the nine months ended September 30, 2015 and 2014 and long-lived tangible assets as of September 30, 2015 and December 31, 2014 (dollars in thousands): For The Nine Months Ended September 30, 2015 % of Total 2014 % of Total Revenue United States $ $ Canada Total International Total $ $ As of September 30, As of December 31, 2015 % of Total 2014 % of Total Long-lived assets United States $ $ Canada Total International Total $ $

Investments In Equipment And Le

Investments In Equipment And Leases (Tables)	9 Months Ended
	Sep. 30, 2015
Investments in Equipment and Leases [Abstract]
Investment in Leases	The Partnership’s investments in equipment and leases consist of the following (in thousands): Balance December 31, 2014 Reclassifications & Additions / Dispositions Depreciation/ Amortization Expense or Amortization of Leases Balance September 30, 2015 Net investment in operating leases $ $ $ $ Assets held for sale or lease, net - Total $ $ $ $
Property on Operating Leases	Property on operating leases consists of the following (in thousands): Balance December 31, 2014 Additions Reclassifications or Dispositions Balance September 30, 2015 Transportation $ $ - $ $ Materials handling - - - Less accumulated depreciation Total $ $ $ $
Future Minimum Lease Payments Receivable	At September 30 , 201 5 , the aggregate amounts of future minimum lease payments are as follows (in thousands): Operating Leases Three months ending December 31, 2015 $ Year ending December 31, 2016 $
Schedule of Useful Lives of Assets	As of September 30 , 2015, the respective useful lives of each category of lease assets in the Partnership ’s portfolio are as follows (in years): Equipment category Useful Life Transportation 35 -40 Materials handling 7 -10

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement	During the three and nine months ended September 30 , 2015 and 2014 , AF S and/or affiliates earned fees and billed for reimbursements of costs and expenses pursuant to the Partnership Agreement as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Cost reimbursements to General Partner $ $ $ $ Equipment and incentive management fees to General Partner $ $ $ $

Organization and Limited Part20

Organization and Limited Partnership Matters (Narrative) (Details) - USD ($)	Nov. 27, 1998	Jan. 07, 1997	Nov. 29, 1996	Dec. 31, 2004	Sep. 30, 2015	Dec. 31, 2014
Organization and Limited Partnership Matters [Abstract]
Partnership business cessation date					Dec. 31, 2017
Public offering of Limited Partnership Units			15,000,000
Public offering price per Units			$ 10
Sale of Limited Partnership Units, number of Units		120,000
Proceeds from sale of Limited Partners Units		$ 1,200,000
Gross contributions	$ 150,000,000
Gross contributions, number of Units	15,000,000
Initial Partners' capital investment	$ 500
AFS' capital investment	$ 100
Units issued					14,985,550	14,985,550
Units outstanding					14,985,550	14,985,550
Reinvestment period				6 years

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Narrative) (Details)	9 Months Ended
	Sep. 30, 2015segment
Summary of Significant Accounting Policies [Abstract]
Number of operating segments	1

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue and Long-Lived Assets) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 620	$ 624	$ 1,777	$ 1,883
Percentage of total revenue			100.00%	100.00%
Long-lived assets receivables	$ 5,239		$ 5,239		$ 5,378
Percentage of long lived assets	100.00%		100.00%		100.00%
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue			$ 1,537	$ 1,643
Percentage of total revenue			86.00%	87.00%
Long-lived assets receivables	$ 4,999		$ 4,999		$ 5,138
Percentage of long lived assets	95.00%		95.00%		96.00%
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue			$ 240	$ 240
Percentage of total revenue			14.00%	13.00%
Long-lived assets receivables	$ 240		$ 240		$ 240
Percentage of long lived assets	5.00%		5.00%		4.00%
Total International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue			$ 240	$ 240
Percentage of total revenue			14.00%	13.00%
Long-lived assets receivables	$ 240		$ 240		$ 240
Percentage of long lived assets	5.00%		5.00%		4.00%

Allowance for Credit Losses (Na

Allowance for Credit Losses (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Allowance for Credit Losses [Abstract]
Provision for Loan and Lease Losses	$ (2)	$ 1	$ (8)	$ (4)	$ 8

Investment in Equipment and L24

Investment in Equipment and Leases (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Investments in Equipment and Leases [Abstract]
Depreciation of operating lease assets	$ 42	$ 33	$ 126	$ 101
Average estimated residual value for assets on operating leases			13.00%		13.00%
Impairment losses			$ 0		$ 0
Contingent rental revenue	$ 6	$ 12	$ 18	$ 24

Investment in Equipment and L25

Investment in Equipment and Leases (Investment in Leases) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Leases Disclosure [Line Items]
Balance December 31, 2014	$ 5,378
Reclassifications, Additions/ Dispositions	(13)
Depreciation/ Amortization Expense or Amortization of Leases	(126)
Balance September 30, 2015	5,239
Operating Leases [Member]
Leases Disclosure [Line Items]
Balance December 31, 2014	2,900
Reclassifications, Additions/ Dispositions	(23)
Depreciation/ Amortization Expense or Amortization of Leases	(126)
Balance September 30, 2015	2,751
Assets Held For Sale or Lease [Member]
Leases Disclosure [Line Items]
Balance December 31, 2014	2,478
Reclassifications, Additions/ Dispositions	$ 10
Depreciation/ Amortization Expense or Amortization of Leases
Balance September 30, 2015	$ 2,488

Investment in Equipment and L26

Investment in Equipment and Leases (Property on Operating Leases) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Property Subject to or Available for Operating Lease [Line Items]
Property on operating leases, gross	$ 20,496	$ 20,901
Less accumulated depreciation	(17,745)	(18,001)
Property on operating leases, net	$ 2,751	2,900
Additions, gross
Additions, less accumulated depreciation	$ (126)
Additions, net	(126)
Reclassifications or dispositions, gross	(405)
Reclassifications or dispositions, less accumulated depreciation	382
Reclassifications or dispositions, net	23
Transportation [Member]
Property Subject to or Available for Operating Lease [Line Items]
Property on operating leases, gross	$ 20,413	20,818
Additions, gross
Reclassifications or dispositions, gross	$ (405)
Materials Handling [Member]
Property Subject to or Available for Operating Lease [Line Items]
Property on operating leases, gross	$ 83	$ 83
Additions, gross
Reclassifications or dispositions, gross

Investment in Equipment and L27

Investment in Equipment and Leases (Future Minimum Lease Payments Receivable) (Details) $ in Thousands	Sep. 30, 2015USD ($)
Operating Leases
Three months ending December 31, 2015	$ 365
Year ending December 31, 2016	1,100
2,017	861
2,018	157
2,019	46
Future minimum lease payments receivable	$ 2,529

Investment in Equipment and L28

Investment in Equipment and Leases (Schedule of Useful Lives of Assets) (Details)	9 Months Ended
	Sep. 30, 2015
Maximum [Member] | Transportation [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	40 years
Maximum [Member] | Materials Handling [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	10 years
Minimum [Member] | Transportation [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	35 years
Minimum [Member] | Materials Handling [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	7 years

Related Party Transactions (Nar

Related Party Transactions (Narrative) (Details)	9 Months Ended
	Sep. 30, 2015
Related Party Transaction [Line Items]
Incentive management fees as a percentage of cash distributions from operations	4.00%
Operating Leases [Member]
Related Party Transaction [Line Items]
Equipment management fees as a percentage of gross revenue	3.50%
Full Payout Leases [Member]
Related Party Transaction [Line Items]
Equipment management fees as a percentage of gross revenue	2.00%

Related Party Transactions (Aff

Related Party Transactions (Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Related Party Transactions [Abstract]
Cost reimbursements to General Partner	$ 96	$ 43	$ 321	$ 138
Equipment and incentive management fees to General Partner	23	15	66	43
Related party transaction, total	$ 119	$ 58	$ 387	$ 181

Gain Contingencies (Narrative)

Gain Contingencies (Narrative) (Details) $ in Millions	Sep. 30, 2015USD ($)
Gain Contingencies [Abstract]
Gain contingency, unrecorded amount	$ 2.8

Partners' Capital (Narrative) (

Partners' Capital (Narrative) (Details) - shares	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Limited Partners' Capital Account [Line Items]
Limited Partners' capital account, units issued	14,985,550	14,985,550
Limited Partners' capital account, units outstanding	14,985,550	14,985,550
Limited Partners' capital account, units authorized	15,000,000	15,000,000
Partnership right to repurchase units of a unitholder	100.00%
Percentage of cash distributions from operations as incentive management fee	4.00%
First [Member]
Limited Partners' Capital Account [Line Items]
Percentage of cash distributions from sales or refinancing as annual return on invested capital	10.00%
Initial Limited Partners [Member]
Limited Partners' Capital Account [Line Items]
Limited Partners' capital account, units issued	50	50
Limited Partner [Member]
Limited Partners' Capital Account [Line Items]
Allocation of net income, net losses, and distributions	92.50%
Limited Partner [Member] | First [Member]
Limited Partners' Capital Account [Line Items]
Percentage of cash distributions from operations	88.50%
Percentage of cash distribution from sales or refinancing	92.50%
Limited Partner [Member] | Second [Member]
Limited Partners' Capital Account [Line Items]
Percentage of cash distributions from operations	85.00%
Percentage of cash distribution from sales or refinancing	85.00%
Limited Partner [Member] | Thereafter [Member]
Limited Partners' Capital Account [Line Items]
Percentage of cash distributions from sales or refinancing as annual return on invested capital	10.00%
General Partner [Member]
Limited Partners' Capital Account [Line Items]
Allocation of net income, net losses, and distributions	7.50%
General Partner [Member] | First [Member]
Limited Partners' Capital Account [Line Items]
Percentage of cash distributions from operations	7.50%
Percentage of cash distribution from sales or refinancing	7.50%
General Partner [Member] | Second [Member]
Limited Partners' Capital Account [Line Items]
Percentage of cash distributions from operations as incentive management fee	7.50%
Percentage of cash distribution from sales or refinancing	7.50%
Affiliated Entity [Member] | First [Member]
Limited Partners' Capital Account [Line Items]
Percentage of cash distributions from operations	4.00%
Affiliated Entity [Member] | Second [Member]
Limited Partners' Capital Account [Line Items]
Percentage of cash distributions from operations as incentive management fee	7.50%
Percentage of cash distribution from sales or refinancing	7.50%