Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 28, 2014 | Jun. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'ATEL CAPITAL EQUIPMENT FUND VIII LLC | ' | ' |
Entity Central Index Key | '0001069152 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Trading Symbol | 'zzhjb | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Public Float | ' | ' | $0 |
Entity Units Outstanding | ' | 13,560,188 | ' |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $1,641 | $516 |
Accounts receivable, net of allowance for doubtful accounts of $3 as of December 31, 2013 and $10 as of December 31, 2012 | 574 | 836 |
Prepaid expenses and other assets | 19 | 19 |
Investments in equipment and leases, net of accumulated depreciation of $31,907 as of December 31, 2013 and $35,621 as of December 31, 2012 | 5,521 | 6,959 |
Total assets | 7,755 | 8,330 |
Accounts payable and accrued liabilities: | ' | ' |
Managing Member | 369 | 780 |
Other | 99 | 172 |
Unearned operating lease income | 74 | 86 |
Total liabilities | 542 | 1,038 |
Commitments and contingencies | ' | ' |
Members' capital: | ' | ' |
Managing Member | ' | ' |
Other Members | 7,213 | 7,292 |
Total Members' capital | 7,213 | 7,292 |
Total liabilities and Members' capital | $7,755 | $8,330 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Balance Sheets [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $3 | $10 |
Investments in equipment and leases, accumulated depreciation | $31,907 | $35,621 |
Statements_of_Income
Statements of Income (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Leasing activities: | ' | ' |
Operating leases | $3,836 | $5,636 |
Direct financing leases | ' | 43 |
Gain on sales of assets | 1,756 | 132 |
Interest | 1 | ' |
Other revenue | 216 | 3 |
Total revenues | 5,809 | 5,814 |
Expenses: | ' | ' |
Depreciation of operating lease assets | 676 | 1,089 |
Asset management fees to Managing Member | 212 | 278 |
Vessel maintenance | 107 | 975 |
Railcar maintenance | 382 | 473 |
Cost reimbursements to Managing Member | 295 | 452 |
Other management fees | 93 | 157 |
Railcar storage fees | 102 | 86 |
Professional fees | 154 | 159 |
Insurance | 23 | 54 |
Reversal of provision for doubtful accounts | -7 | -12 |
Taxes on income and franchise fees | 26 | 40 |
Postage | 17 | 12 |
Printing and photocopying | 17 | 22 |
Freight and shipping | 17 | 11 |
Other | 109 | 132 |
Total operating expenses | 2,223 | 3,928 |
Net income | 3,586 | 1,886 |
Net income: | ' | ' |
Managing Member | 275 | 258 |
Other Members | 3,311 | 1,628 |
Net income | $3,586 | $1,886 |
Net income per Limited Liability Company Unit (Other Members) | $0.24 | $0.12 |
Weighted average number of Units outstanding | 13,560,188 | 13,560,188 |
Statements_of_Changes_in_Membe
Statements of Changes in Members' Capital (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Beginning Balance | $7,292 | $8,850 |
Distributions to Other Members | -3,390 | -3,186 |
Distributions to Managing Member | -275 | -258 |
Net income | 3,586 | 1,886 |
Ending Balance | 7,213 | 7,292 |
Other Members [Member] | ' | ' |
Beginning Balance (in units) | 13,560,188 | 13,560,188 |
Beginning Balance | 7,292 | 8,850 |
Distributions to Other Members | -3,390 | -3,186 |
Net income | 3,311 | 1,628 |
Ending Balance (in units) | 13,560,188 | 13,560,188 |
Ending Balance | 7,213 | 7,292 |
Managing Member [Member] | ' | ' |
Distributions to Managing Member | -275 | -258 |
Net income | $275 | $258 |
Statements_of_Changes_in_Membe1
Statements of Changes in Members' Capital (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Statements of Changes in Members' Capital [Abstract] | ' | ' |
Distributions to Other Members , per unit | $0.25 | $0.24 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | ' | ' |
Net income | $3,586 | $1,886 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Gain on sales of assets | -1,756 | -132 |
Depreciation of operating lease assets | 676 | 1,089 |
Reversal of provision for doubtful accounts | -7 | -12 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 269 | 7 |
Prepaid expenses and other assets | ' | -5 |
Accounts payable, Managing Member | -411 | -210 |
Accounts payable, other | -73 | 64 |
Unearned operating lease income | -12 | -12 |
Net cash provided by operating activities | 2,272 | 2,675 |
Investing activities: | ' | ' |
Proceeds from sales of lease assets | 2,470 | 232 |
Principal payments received on direct financing leases | 48 | 152 |
Improvements to lease assets | ' | -24 |
Net cash provided by investing activities | 2,518 | 360 |
Financing activities: | ' | ' |
Net cash used in financing activities | -3,665 | -3,444 |
Net increase (decrease) in cash and cash equivalents | 1,125 | -409 |
Cash and cash equivalents at beginning of year | 516 | 925 |
Cash and cash equivalents at end of year | 1,641 | 516 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid during the year for taxes | 17 | 49 |
Other Members [Member] | ' | ' |
Operating activities: | ' | ' |
Net income | 3,311 | 1,628 |
Financing activities: | ' | ' |
Distributions to Members | -3,390 | -3,186 |
Managing Member [Member] | ' | ' |
Operating activities: | ' | ' |
Net income | 275 | 258 |
Financing activities: | ' | ' |
Distributions to Members | ($275) | ($258) |
Organization_and_Limited_Liabi
Organization and Limited Liability Company Matters | 12 Months Ended |
Dec. 31, 2013 | |
Organization And Limited Liability Company Matters Abstract [Abstract] | ' |
Organization and Limited Liability Company Matters | ' |
1. Organization and Limited Liability Company matters: | |
ATEL Capital Equipment Fund VIII, LLC (the “Company” or the “Fund”) was formed under the laws of the State of California on July 31, 1998. The Company was formed for the purpose of acquiring equipment to engage in equipment leasing, lending and sales activities. The Managing Member of the Company is ATEL Financial Services, LLC (“AFS”), a California limited liability company. The Company may continue until December 31, 2019. Each Member’s personal liability for obligations of the Company generally will be limited to the amount of their respective contributions and rights to undistributed profits and assets of the Company. | |
The Company conducted a public offering of 15,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. On January 13, 1999, subscriptions for the minimum number of Units (120,000, representing $1.2 million) had been received (excluding subscriptions from Pennsylvania investors) and AFS requested that the subscriptions be released to the Company. On that date the Company commenced operations in its primary business (acquiring equipment to engage in equipment leasing, lending and sales activities). Gross contributions in the amount of $135.7 million (13,570,188 units) were received as of November 30, 2000, inclusive of $500 of initial Member’s capital investment and $100 of AFS’ capital investment. The offering was terminated on November 30, 2000. As of December 31, 2013, 13,560,188 Units were issued and outstanding. | |
The Company’s principal objectives have been to invest in a diversified portfolio of equipment that (i) preserves, protects and returns the Company’s invested capital; (ii) generates regular distributions to the Members 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, 2006, and (iii) provides additional distributions following the Reinvestment Period and until all equipment has been sold. The Company is governed by its Limited Liability Company Operating Agreement (“Operating Agreement”), as amended. | |
Pursuant to the Operating Agreement, AFS and/or its affiliates receive compensation and reimbursements for services rendered on behalf of the Company (see Note 6). The Company 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 December 31, 2013, the Company continues in the liquidation phase of its life cycle as defined in the Operating Agreement. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | |||||||||
Summary of Significant Accounting Policies | ' | |||||||||
2. Summary of significant accounting policies: | ||||||||||
Basis of presentation: | ||||||||||
The accompanying balance sheets as of December 31, 2013 and 2012, and the related statements of income, changes in members’ capital, and cash flows for the years then ended, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission. | ||||||||||
Certain prior year amounts have been reclassified to conform to the current year 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 financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after December 31, 2013, up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements. | ||||||||||
Use of estimates: | ||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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 relate primarily to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and determination of the allowance for doubtful accounts. | ||||||||||
Cash and cash equivalents: | ||||||||||
Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less. | ||||||||||
Credit risk: | ||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating and direct financing lease receivables and accounts receivable. The Company places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Funds’ cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts receivable represent amounts due from lessees in various industries, related to equipment on operating and direct financing leases. | ||||||||||
Accounts receivable: | ||||||||||
Accounts receivable represent the amounts billed under operating and direct financing lease contracts which are currently due to the Company. Allowances for doubtful accounts are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and invoiced amounts. Accounts receivable deemed uncollectible are charged off to the allowance on a specific identification basis. Amounts recovered that were previously written-off are recorded as other income in the period received. | ||||||||||
Equipment on operating leases and related revenue recognition: | ||||||||||
Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. Maintenance costs associated with the Fund’s leased assets are expensed as incurred. Major additions and betterments are capitalized. | ||||||||||
Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases were generally from 24 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. | ||||||||||
Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. | ||||||||||
The Company earns revenues from its containers, marine vessel and certain other assets based on utilization of such assets or through fixed term leases. Contingent rentals and the associated expenses are recorded when earned and/or incurred. From time to time, the Company incurs “drydocking” costs on its vessel. Drydocking costs include labor and material costs related to refurbishing, overhauling and/or replacing engine and other major mechanical components of the vessel, hull maintenance and other repairs that bring the vessel into seaworthy compliance with U.S. marine codes in order to have it certified as available for charter. Such drydocking costs are capitalized and depreciated over the period between scheduled drydockings, which generally occur every 24 to 30 months. | ||||||||||
Direct financing leases and related revenue recognition: | ||||||||||
Income from direct financing lease transactions is reported using the financing method of accounting, in which the Company’s investment in the leased property is reported as a receivable from the lessee to be recovered through future rentals. The interest income portion of each rental payment is calculated so as to generate a constant rate of return on the net receivable outstanding. | ||||||||||
Allowances for losses on direct financing leases are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and billed and unbilled receivables. Direct financing leases are charged off to the allowance as they are deemed uncollectible. | ||||||||||
Direct financing leases are generally placed in a non-accrual status (i.e., no revenue is recognized) and deemed impaired when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of all direct finance lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related direct financing leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, all payments received are applied only against outstanding principal balances. | ||||||||||
Asset valuation: | ||||||||||
Recorded values of the Company’s asset portfolio are periodically reviewed for impairment. 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 estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. 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 market place 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. | ||||||||||
Segment reporting: | ||||||||||
The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States. | ||||||||||
The Company’s principal decision makers are the Managing Member’s Chief Executive Officer and its Chief Financial Officer and Chief Operating Officer. The Company believes that its equipment leasing business operates as one reportable segment because: a) the Company measures profit and loss at the equipment portfolio level as a whole; b) the principal decision makers do not review information based on any operating segment other than the equipment leasing transaction portfolio; c) the Company does not maintain discrete financial information on any specific segment other than its equipment financing operations; d) the Company has not chosen to organize its business around different products and services other than equipment lease financing; and e) the Company has not chosen to organize its business around geographic areas. | ||||||||||
Certain of the Company’s lessee customers have international operations. In these instances, the Company 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 Company to track, on an asset-by-asset, day-by-day basis, where these assets are deployed. | ||||||||||
The primary geographic region in which the Company sought leasing opportunities was North America. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the years ended December 31, 2013 and 2012 and long-lived tangible assets as of December 31, 2013 and December 31, 2012 (dollars in thousands): | ||||||||||
For the Year Ended December 31, | ||||||||||
2013 | % of Total | 2012 | % of Total | |||||||
Revenue | ||||||||||
United States | $ | 5,735 | 99% | $ | 5,657 | 97% | ||||
Canada | 74 | 1% | 157 | 3% | ||||||
Total International | 74 | 1% | 157 | 3% | ||||||
Total | $ | 5,809 | 100% | $ | 5,814 | 100% | ||||
As of December 31, | ||||||||||
2013 | % of Total | 2012 | % of Total | |||||||
Long-lived assets | ||||||||||
United States | $ | 5,497 | 100% | $ | 6,935 | 100% | ||||
Canada | 24 | 0% | 24 | 0% | ||||||
Total International | 24 | 0% | 24 | 0% | ||||||
Total | $ | 5,521 | 100% | $ | 6,959 | 100% | ||||
Unearned operating lease income: | ||||||||||
The Company records prepayments on operating leases as a liability under the caption of unearned operating lease income. The liability is recorded when prepayments are received and recognized as operating lease revenue over the period to which the prepayments relate using a straight-line method. | ||||||||||
Income taxes: | ||||||||||
The Company is treated as a partnership for federal income tax purposes. Pursuant to the provisions of Section 701 of the Internal Revenue Code, a partnership is not subject to federal income taxes. Accordingly, the Company has provided current income taxes for only those states, which levy income taxes on partnerships. For the years ended December 31, 2013 and 2012, the related provision for state income taxes was approximately $26 thousand and $40 thousand, respectively. | ||||||||||
The Company does not have any entity level uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions and is generally subject to examination by U.S. federal (or state and local) income tax authorities for three years from the filing of a tax return. | ||||||||||
The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2013 and 2012 as follows (in thousands): | ||||||||||
2013 | 2012 | |||||||||
Financial statement basis of net assets | $ | 7,213 | $ | 7,292 | ||||||
Tax basis of net assets (unaudited) | 8,900 | 7,751 | ||||||||
Difference | $ | -1,687 | $ | -459 | ||||||
The primary differences between the tax bases of net assets and the amounts recorded in the financial statements are the result of differences in accounting for syndication costs and differences between the depreciation methods used in the financial statements and the Company’s tax returns. | ||||||||||
The following reconciles the net income reported in these financial statements to the income reported on the Company’s federal tax returns (unaudited) for the years ended December 31, 2013 and 2012 (in thousands): | ||||||||||
2013 | 2012 | |||||||||
Net income per financial statements | $ | 3,586 | $ | 1,886 | ||||||
Tax adjustments (unaudited): | ||||||||||
Adjustment to depreciation expense | 542 | 894 | ||||||||
Provision for losses and doubtful accounts | -7 | -12 | ||||||||
Adjustments to revenues / other expenses | 37 | 140 | ||||||||
Adjustments to gain on sales of assets | 656 | 100 | ||||||||
Income per federal tax return (unaudited) | $ | 4,814 | $ | 3,008 | ||||||
Per unit data: | ||||||||||
Net income and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the year. | ||||||||||
Recent accounting pronouncements: | ||||||||||
Recent accounting standards updates as issued by the Financial Accounting Standards Board (FASB) were evaluated and determined to be not applicable to the Company. | ||||||||||
Concentration_of_Credit_Risk_a
Concentration of Credit Risk and Major Customers | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Concentration of Credit Risk and Major Customers [Abstract] | ' | ||||||
Concentration of Credit Risk and Major Customers | ' | ||||||
3. Concentration of credit risk and major customers: | |||||||
The Company leases equipment to lessees in diversified industries. Leases are subject to AFS’s credit committee review. The leases provide for the return of the equipment to the Company upon default. | |||||||
As of December 31, 2013 and 2012, there were concentrations (defined as greater than or equal to 10%) of equipment leased to lessees in certain industries (as a percentage of total equipment cost) as follows: | |||||||
2013 | 2012 | ||||||
Transportation, containers | 57% | 46% | |||||
Transportation, rail | 41% | 42% | |||||
Transportation, other | * | 12% | |||||
* Less than 10% | |||||||
During 2013 and 2012, certain lessees generated significant portions (defined as greater than or equal to 10%) of the Company’s total lease revenues, excluding gains or losses from disposition of assets, as follows: | |||||||
Percentage of Total | |||||||
Lease Revenues | |||||||
Lessee | Type of Equipment | 2013 | 2012 | ||||
Exsif Worldwide Inc. | Transportation, other | 45% | 37% | ||||
Bee Mar, LLC | Marine vessel | * | 22% | ||||
* Less than 10% | |||||||
Allowance_for_Credit_Losses
Allowance for Credit Losses | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Allowance for Credit Losses [Abstract] | ' | |||||||||||
Allowance for Credit Losses | ' | |||||||||||
4. Allowance for credit losses: | ||||||||||||
The Company’s allowance for credit losses are as follows (in thousands): | ||||||||||||
Accounts Receivable Allowance | Valuation Adjustments on Financing Receivables | Total Allowance for Credit Losses | ||||||||||
for Doubtful Accounts | ||||||||||||
Finance Leases | Operating Leases | Finance Leases | ||||||||||
Balance December 31, 2011 | $ | - | $ | 22 | $ | - | $ | 22 | ||||
Reversal of provision | - | -12 | - | -12 | ||||||||
Balance December 31, 2012 | - | 10 | - | 10 | ||||||||
Reversal of provision | - | -7 | - | -7 | ||||||||
Balance December 31, 2013 | $ | - | $ | 3 | $ | - | $ | 3 | ||||
The allowance for credit losses at both December 31, 2013 and 2012 were related to delinquent operating lease receivables. | ||||||||||||
As of December 31, 2013, the Company had no financing lease receivables, as its remaining finance lease matured on July 1, 2013. By comparison, at December 31, 2012, finance lease receivables totaled $100 thousand, all of which were current. | ||||||||||||
Investments_in_Equipment_and_L
Investments in Equipment and Leases, Net | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Investments in Equipment and Leases, Net [Abstract] | ' | |||||||||||
Investments in Equipment and Leases, Net | ' | |||||||||||
5. Investments in equipment and leases, net: | ||||||||||||
The Company’s investment in leases consists of the following (in thousands): | ||||||||||||
Balance | Reclassifications | Depreciation/ | Balance | |||||||||
December 31, | & | Amortization | December 31, | |||||||||
2012 | Additions / | Expense or | 2013 | |||||||||
Dispositions | Amortization | |||||||||||
of Leases | ||||||||||||
Net investment in operating leases | $ | 6,230 | $ | -1,361 | $ | -638 | $ | 4,231 | ||||
Net investment in direct financing leases | 100 | -52 | -48 | - | ||||||||
Assets held for sale or lease, net | 629 | 699 | -38 | 1,290 | ||||||||
Total | $ | 6,959 | $ | -714 | $ | -724 | $ | 5,521 | ||||
Impairment of investments in leases and assets held for sale or lease: | ||||||||||||
Management periodically reviews the carrying values of its assets on leases and assets held for lease or sale. Impairment losses are recorded as an adjustment to the net investment in operating leases. No impairment losses were recorded during 2013 and 2012. | ||||||||||||
The Company utilizes a straight line depreciation method over the term of the equipment lease for equipment on operating leases currently in its portfolio. Depreciation expense on the Company’s equipment totaled $676 thousand and $1.1 million for the respective years ended December 31, 2013 and 2012. | ||||||||||||
All of the remaining property on lease was acquired during the years 1999 through 2001. | ||||||||||||
Operating leases: | ||||||||||||
Property on operating leases consists of the following (in thousands): | ||||||||||||
Balance | Additions | Reclassifications | Balance | |||||||||
December 31, | or Dispositions | December 31, | ||||||||||
2012 | 2013 | |||||||||||
Containers | $ | 19,380 | $ | - | $ | -3,506 | $ | 15,874 | ||||
Transportation, rail | 13,125 | - | -1,772 | 11,353 | ||||||||
Marine vessel | 4,793 | - | -4,793 | - | ||||||||
Other | 640 | - | - | 640 | ||||||||
37,938 | - | -10,071 | 27,867 | |||||||||
Less accumulated depreciation | -31,708 | -638 | 8,710 | -23,636 | ||||||||
Total | $ | 6,230 | $ | -638 | $ | -1,361 | $ | 4,231 | ||||
The average estimated residual value for assets on operating leases was 11% and 10% of the assets’ original cost at December 31, 2013 and 2012, respectively. | ||||||||||||
The Company earns revenues from its containers, marine vessel and certain other 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 revenues, and totaled $1.8 million and $2.3 million for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||
As of December 31, 2013 and 2012, the Company had no operating leases in non-accrual status. | ||||||||||||
Direct financing leases: | ||||||||||||
As of December 31, 2013, the Company had no investment in direct financing leases, as its remaining finance lease matured on July 1, 2013. By comparison, as of December 31, 2012, the net investment in direct financing leases amounted to $100 thousand and consisted primarily of railcars and manufacturing equipment. | ||||||||||||
At December 31, 2013, the aggregate amount of future lease payments is as follows (in thousands): | ||||||||||||
Operating | ||||||||||||
Leases | ||||||||||||
Year ending December 31, 2014 | $ | 1,200 | ||||||||||
2015 | 572 | |||||||||||
2016 | 284 | |||||||||||
2017 | 267 | |||||||||||
2018 | 78 | |||||||||||
Thereafter | 6 | |||||||||||
$ | 2,407 | |||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Related Party Transactions [Abstract] | ' | |||||
Related Party Transactions | ' | |||||
6. Related party transactions: | ||||||
The terms of the Operating Agreement provide that AFS and/or affiliates are entitled to receive certain fees for equipment management and resale and for management of the Company. | ||||||
The Operating Agreement allows for the reimbursement of costs incurred by AFS in providing administrative services to the Company. Administrative services provided include Company accounting, finance/treasury, 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 management of equipment. | ||||||
Each of ATEL Leasing Corporation (“ALC”) and AFS is a wholly-owned subsidiary of ATEL Capital Group and performs services for the Company. 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 Managing Member are based on its costs incurred in performing administrative services for the Company. 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. | ||||||
AFS and/or affiliates earned fees, commissions and reimbursements, pursuant to the Operating Agreement as follows during each of the years ended December 31, 2013 and 2012 (in thousands): | ||||||
2013 | 2012 | |||||
Asset management fees to Managing Member | $ | 212 | $ | 278 | ||
Cost reimbursements to Managing Member | 295 | 452 | ||||
$ | 507 | $ | 730 | |||
The Fund’s Operating 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 ended December 31, 2013, the amount of reimbursable expenses billed to the Fund did not exceed either the annual or the cumulative limitations. It is not anticipated that any further billings to the Fund will equal or exceed the annual or cumulative reimbursable expense limitation. Such is reflective of the continued diminishing Fund asset base over which reimbursements are calculated. | ||||||
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2013 | |
Guarantees [Abstract] | ' |
Guarantees | ' |
7. Guarantees: | |
The Company enters into contracts that contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. | |
The Managing Member knows of no facts or circumstances that would make the Company’s contractual commitments outside standard mutual covenants applicable to commercial transactions between businesses. Accordingly, the Company 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 Company’s similar commitments is remote. Should any such indemnification obligation become payable, the Company would separately record and/or disclose such liability in accordance with GAAP. | |
Gain_Contingencies
Gain Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Gain Contingencies [Abstract] | ' |
Gain Contingencies | ' |
8. Gain contingencies: | |
ATEL filed a claim on behalf of the Company and certain affiliated entities in Federal court in New Orleans for the under-reporting of revenue by a fleet manager of three marine vessels, seeking to recover an approximate amount of 10% of gross proceeds, which in the aggregate for all affiliated entities represents $2.8 million for the years 2005-2007 (of which the Company’s portion is an approximate $350 thousand). The annual allocable portion of the claim is not considered material to the Company in any given year. The trial was concluded during the first week of August 2012. In October 2012, the matter was remitted to the Federal Judge to render a decision on both the law and the facts. The decision of the Court was rendered at the end of June 2013 and the court found in favor of the defendants. The Company filed an appeal of the court’s decision and remains hopeful for a recovery of all or portion of its asserted claims. As a result of the ruling, the defendants filed a claim for legal fees and costs, however, this was denied. The outcome of the Company’s claim remains uncertain as of this date. | |
Members_Capital
Members' Capital | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Members Capital [Abstract] | ' | |||||
Members' Capital | ' | |||||
9. Members’ capital: | ||||||
As of December 31, 2013 and 2012, 13,560,188 Units were issued and outstanding. The Company was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial members (50 Units). | ||||||
The Company has the right, exercisable at the Managing Member’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 Company is otherwise permitted, but not required, to repurchase Units upon a holder’s request. The repurchase of Fund units is made in accordance with Section 13 of the Amended and Restated Agreement of Limited Liability Company. The repurchase would be at the discretion of the Managing Member on terms it determines to be appropriate under given circumstances, in the event that the Managing Member deems such repurchase to be in the best interest of the Company; provided, the Company 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 allocations of net income, net loss or distributions for the quarter in which such repurchase occurs. | ||||||
As defined in the Operating Agreement, the Company’s Net Income, Net Losses, and Distributions are to be allocated 92.5% to the Other Members and 7.5% to AFS. In accordance with the terms of the Operating Agreement, additional allocations of income were made to AFS in 2013 and 2012. The amounts allocated were determined so as to bring AFS’s ending capital account balance to zero at the end of the year. | ||||||
Distributions to the Other Members were as follows (in thousands, except as to Units and per Unit data): | ||||||
2013 | 2012 | |||||
Distributions declared | $ | 3,390 | $ | 3,186 | ||
Weighted average number of Units outstanding | 13,560,188 | 13,560,188 | ||||
Weighted average distributions per Unit | $ | 0.25 | $ | 0.24 | ||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policy) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | |||||||||
Basis of Presentation | ' | |||||||||
Basis of presentation: | ||||||||||
The accompanying balance sheets as of December 31, 2013 and 2012, and the related statements of income, changes in members’ capital, and cash flows for the years then ended, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission. | ||||||||||
Certain prior year amounts have been reclassified to conform to the current year 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 financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after December 31, 2013, up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements. | ||||||||||
Use of Estimates | ' | |||||||||
Use of estimates: | ||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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 relate primarily to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and determination of the allowance for doubtful accounts. | ||||||||||
Cash and Cash Equivalents | ' | |||||||||
Cash and cash equivalents: | ||||||||||
Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less. | ||||||||||
Credit Risk | ' | |||||||||
Credit risk: | ||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating and direct financing lease receivables and accounts receivable. The Company places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Funds’ cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts receivable represent amounts due from lessees in various industries, related to equipment on operating and direct financing leases. | ||||||||||
Accounts Receivable | ' | |||||||||
Accounts receivable: | ||||||||||
Accounts receivable represent the amounts billed under operating and direct financing lease contracts which are currently due to the Company. Allowances for doubtful accounts are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and invoiced amounts. Accounts receivable deemed uncollectible are charged off to the allowance on a specific identification basis. Amounts recovered that were previously written-off are recorded as other income in the period received. | ||||||||||
Equipment on Operating Leases and Related Revenue Recognition | ' | |||||||||
Equipment on operating leases and related revenue recognition: | ||||||||||
Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. Maintenance costs associated with the Fund’s leased assets are expensed as incurred. Major additions and betterments are capitalized. | ||||||||||
Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases were generally from 24 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. | ||||||||||
Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. | ||||||||||
The Company earns revenues from its containers, marine vessel and certain other assets based on utilization of such assets or through fixed term leases. Contingent rentals and the associated expenses are recorded when earned and/or incurred. From time to time, the Company incurs “drydocking” costs on its vessel. Drydocking costs include labor and material costs related to refurbishing, overhauling and/or replacing engine and other major mechanical components of the vessel, hull maintenance and other repairs that bring the vessel into seaworthy compliance with U.S. marine codes in order to have it certified as available for charter. Such drydocking costs are capitalized and depreciated over the period between scheduled drydockings, which generally occur every 24 to 30 months. | ||||||||||
Direct Financing Leases and Related Revenue Recognition | ' | |||||||||
Direct financing leases and related revenue recognition: | ||||||||||
Income from direct financing lease transactions is reported using the financing method of accounting, in which the Company’s investment in the leased property is reported as a receivable from the lessee to be recovered through future rentals. The interest income portion of each rental payment is calculated so as to generate a constant rate of return on the net receivable outstanding. | ||||||||||
Allowances for losses on direct financing leases are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and billed and unbilled receivables. Direct financing leases are charged off to the allowance as they are deemed uncollectible. | ||||||||||
Direct financing leases are generally placed in a non-accrual status (i.e., no revenue is recognized) and deemed impaired when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of all direct finance lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related direct financing leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, all payments received are applied only against outstanding principal balances. | ||||||||||
Asset Valuation | ' | |||||||||
Asset valuation: | ||||||||||
Recorded values of the Company’s asset portfolio are periodically reviewed for impairment. 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 estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. 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 market place 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. | ||||||||||
Segment Reporting | ' | |||||||||
Segment reporting: | ||||||||||
The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States. | ||||||||||
The Company’s principal decision makers are the Managing Member’s Chief Executive Officer and its Chief Financial Officer and Chief Operating Officer. The Company believes that its equipment leasing business operates as one reportable segment because: a) the Company measures profit and loss at the equipment portfolio level as a whole; b) the principal decision makers do not review information based on any operating segment other than the equipment leasing transaction portfolio; c) the Company does not maintain discrete financial information on any specific segment other than its equipment financing operations; d) the Company has not chosen to organize its business around different products and services other than equipment lease financing; and e) the Company has not chosen to organize its business around geographic areas. | ||||||||||
Certain of the Company’s lessee customers have international operations. In these instances, the Company 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 Company to track, on an asset-by-asset, day-by-day basis, where these assets are deployed. | ||||||||||
The primary geographic region in which the Company sought leasing opportunities was North America. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the years ended December 31, 2013 and 2012 and long-lived tangible assets as of December 31, 2013 and December 31, 2012 (dollars in thousands): | ||||||||||
For the Year Ended December 31, | ||||||||||
2013 | % of Total | 2012 | % of Total | |||||||
Revenue | ||||||||||
United States | $ | 5,735 | 99% | $ | 5,657 | 97% | ||||
Canada | 74 | 1% | 157 | 3% | ||||||
Total International | 74 | 1% | 157 | 3% | ||||||
Total | $ | 5,809 | 100% | $ | 5,814 | 100% | ||||
As of December 31, | ||||||||||
2013 | % of Total | 2012 | % of Total | |||||||
Long-lived assets | ||||||||||
United States | $ | 5,497 | 100% | $ | 6,935 | 100% | ||||
Canada | 24 | 0% | 24 | 0% | ||||||
Total International | 24 | 0% | 24 | 0% | ||||||
Total | $ | 5,521 | 100% | $ | 6,959 | 100% | ||||
Unearned Operating Lease Income | ' | |||||||||
Unearned operating lease income: | ||||||||||
The Company records prepayments on operating leases as a liability under the caption of unearned operating lease income. The liability is recorded when prepayments are received and recognized as operating lease revenue over the period to which the prepayments relate using a straight-line method. | ||||||||||
Income Taxes | ' | |||||||||
Income taxes: | ||||||||||
The Company is treated as a partnership for federal income tax purposes. Pursuant to the provisions of Section 701 of the Internal Revenue Code, a partnership is not subject to federal income taxes. Accordingly, the Company has provided current income taxes for only those states, which levy income taxes on partnerships. For the years ended December 31, 2013 and 2012, the related provision for state income taxes was approximately $26 thousand and $40 thousand, respectively. | ||||||||||
The Company does not have any entity level uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions and is generally subject to examination by U.S. federal (or state and local) income tax authorities for three years from the filing of a tax return. | ||||||||||
The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2013 and 2012 as follows (in thousands): | ||||||||||
2013 | 2012 | |||||||||
Financial statement basis of net assets | $ | 7,213 | $ | 7,292 | ||||||
Tax basis of net assets (unaudited) | 8,900 | 7,751 | ||||||||
Difference | $ | -1,687 | $ | -459 | ||||||
The primary differences between the tax bases of net assets and the amounts recorded in the financial statements are the result of differences in accounting for syndication costs and differences between the depreciation methods used in the financial statements and the Company’s tax returns. | ||||||||||
The following reconciles the net income reported in these financial statements to the income reported on the Company’s federal tax returns (unaudited) for the years ended December 31, 2013 and 2012 (in thousands): | ||||||||||
2013 | 2012 | |||||||||
Net income per financial statements | $ | 3,586 | $ | 1,886 | ||||||
Tax adjustments (unaudited): | ||||||||||
Adjustment to depreciation expense | 542 | 894 | ||||||||
Provision for losses and doubtful accounts | -7 | -12 | ||||||||
Adjustments to revenues / other expenses | 37 | 140 | ||||||||
Adjustments to gain on sales of assets | 656 | 100 | ||||||||
Income per federal tax return (unaudited) | $ | 4,814 | $ | 3,008 | ||||||
Per Unit Data | ' | |||||||||
Per unit data: | ||||||||||
Net income and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the year. | ||||||||||
Recent Accounting Pronouncements | ' | |||||||||
Recent accounting pronouncements: | ||||||||||
Recent accounting standards updates as issued by the Financial Accounting Standards Board (FASB) were evaluated and determined to be not applicable to the Company. | ||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
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 Company’s total revenues for the years ended December 31, 2013 and 2012 and long-lived tangible assets as of December 31, 2013 and December 31, 2012 (dollars in thousands): | ||||||||||
For the Year Ended December 31, | ||||||||||
2013 | % of Total | 2012 | % of Total | |||||||
Revenue | ||||||||||
United States | $ | 5,735 | 99% | $ | 5,657 | 97% | ||||
Canada | 74 | 1% | 157 | 3% | ||||||
Total International | 74 | 1% | 157 | 3% | ||||||
Total | $ | 5,809 | 100% | $ | 5,814 | 100% | ||||
As of December 31, | ||||||||||
2013 | % of Total | 2012 | % of Total | |||||||
Long-lived assets | ||||||||||
United States | $ | 5,497 | 100% | $ | 6,935 | 100% | ||||
Canada | 24 | 0% | 24 | 0% | ||||||
Total International | 24 | 0% | 24 | 0% | ||||||
Total | $ | 5,521 | 100% | $ | 6,959 | 100% | ||||
Schedule of Differences Between Book Value and Tax Basis of Net Assets | ' | |||||||||
The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2013 and 2012 as follows (in thousands): | ||||||||||
2013 | 2012 | |||||||||
Financial statement basis of net assets | $ | 7,213 | $ | 7,292 | ||||||
Tax basis of net assets (unaudited) | 8,900 | 7,751 | ||||||||
Difference | $ | -1,687 | $ | -459 | ||||||
Reconciliation of Net Income Loss Reported in Financial Statements and Federal Tax Return | ' | |||||||||
The following reconciles the net income reported in these financial statements to the income reported on the Company’s federal tax returns (unaudited) for the years ended December 31, 2013 and 2012 (in thousands): | ||||||||||
2013 | 2012 | |||||||||
Net income per financial statements | $ | 3,586 | $ | 1,886 | ||||||
Tax adjustments (unaudited): | ||||||||||
Adjustment to depreciation expense | 542 | 894 | ||||||||
Provision for losses and doubtful accounts | -7 | -12 | ||||||||
Adjustments to revenues / other expenses | 37 | 140 | ||||||||
Adjustments to gain on sales of assets | 656 | 100 | ||||||||
Income per federal tax return (unaudited) | $ | 4,814 | $ | 3,008 | ||||||
Concentration_of_Credit_Risk_a1
Concentration of Credit Risk and Major Customers (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Concentration of Credit Risk and Major Customers [Abstract] | ' | ||||||
Schedule of Equipment Leased Credit Risk Concentration | ' | ||||||
As of December 31, 2013 and 2012, there were concentrations (defined as greater than or equal to 10%) of equipment leased to lessees in certain industries (as a percentage of total equipment cost) as follows: | |||||||
2013 | 2012 | ||||||
Transportation, containers | 57% | 46% | |||||
Transportation, rail | 41% | 42% | |||||
Transportation, other | * | 12% | |||||
* Less than 10% | |||||||
Schedule of Major Customers Credit Risk Concentration | ' | ||||||
During 2013 and 2012, certain lessees generated significant portions (defined as greater than or equal to 10%) of the Company’s total lease revenues, excluding gains or losses from disposition of assets, as follows: | |||||||
Percentage of Total | |||||||
Lease Revenues | |||||||
Lessee | Type of Equipment | 2013 | 2012 | ||||
Exsif Worldwide Inc. | Transportation, other | 45% | 37% | ||||
Bee Mar, LLC | Marine vessel | * | 22% | ||||
* Less than 10% | |||||||
Allowance_for_Credit_Losses_Ta
Allowance for Credit Losses (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Allowance for Credit Losses [Abstract] | ' | |||||||||||
Activity in Allowance for Doubtful Accounts | ' | |||||||||||
The Company’s allowance for credit losses are as follows (in thousands): | ||||||||||||
Accounts Receivable Allowance | Valuation Adjustments on Financing Receivables | Total Allowance for Credit Losses | ||||||||||
for Doubtful Accounts | ||||||||||||
Finance Leases | Operating Leases | Finance Leases | ||||||||||
Balance December 31, 2011 | $ | - | $ | 22 | $ | - | $ | 22 | ||||
Reversal of provision | - | -12 | - | -12 | ||||||||
Balance December 31, 2012 | - | 10 | - | 10 | ||||||||
Reversal of provision | - | -7 | - | -7 | ||||||||
Balance December 31, 2013 | $ | - | $ | 3 | $ | - | $ | 3 | ||||
Investments_in_Equipment_and_L1
Investments in Equipment and Leases, Net (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Investments in Equipment and Leases, Net [Abstract] | ' | |||||||||||
Investment in Leases | ' | |||||||||||
The Company’s investment in leases consists of the following (in thousands): | ||||||||||||
Balance | Reclassifications | Depreciation/ | Balance | |||||||||
December 31, | & | Amortization | December 31, | |||||||||
2012 | Additions / | Expense or | 2013 | |||||||||
Dispositions | Amortization | |||||||||||
of Leases | ||||||||||||
Net investment in operating leases | $ | 6,230 | $ | -1,361 | $ | -638 | $ | 4,231 | ||||
Net investment in direct financing leases | 100 | -52 | -48 | - | ||||||||
Assets held for sale or lease, net | 629 | 699 | -38 | 1,290 | ||||||||
Total | $ | 6,959 | $ | -714 | $ | -724 | $ | 5,521 | ||||
Property on Operating Leases | ' | |||||||||||
Property on operating leases consists of the following (in thousands): | ||||||||||||
Balance | Additions | Reclassifications | Balance | |||||||||
December 31, | or Dispositions | December 31, | ||||||||||
2012 | 2013 | |||||||||||
Containers | $ | 19,380 | $ | - | $ | -3,506 | $ | 15,874 | ||||
Transportation, rail | 13,125 | - | -1,772 | 11,353 | ||||||||
Marine vessel | 4,793 | - | -4,793 | - | ||||||||
Other | 640 | - | - | 640 | ||||||||
37,938 | - | -10,071 | 27,867 | |||||||||
Less accumulated depreciation | -31,708 | -638 | 8,710 | -23,636 | ||||||||
Total | $ | 6,230 | $ | -638 | $ | -1,361 | $ | 4,231 | ||||
Future Minimum Lease Payments Receivable | ' | |||||||||||
At December 31, 2013, the aggregate amount of future lease payments is as follows (in thousands): | ||||||||||||
Operating | ||||||||||||
Leases | ||||||||||||
Year ending December 31, 2014 | $ | 1,200 | ||||||||||
2015 | 572 | |||||||||||
2016 | 284 | |||||||||||
2017 | 267 | |||||||||||
2018 | 78 | |||||||||||
Thereafter | 6 | |||||||||||
$ | 2,407 | |||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Related Party Transactions [Abstract] | ' | |||||
Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement | ' | |||||
AFS and/or affiliates earned fees, commissions and reimbursements, pursuant to the Operating Agreement as follows during each of the years ended December 31, 2013 and 2012 (in thousands): | ||||||
2013 | 2012 | |||||
Asset management fees to Managing Member | $ | 212 | $ | 278 | ||
Cost reimbursements to Managing Member | 295 | 452 | ||||
$ | 507 | $ | 730 | |||
Members_Capital_Tables
Members' Capital (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Members Capital [Abstract] | ' | |||||
Distributions to the Other Members | ' | |||||
Distributions to the Other Members were as follows (in thousands, except as to Units and per Unit data): | ||||||
2013 | 2012 | |||||
Distributions declared | $ | 3,390 | $ | 3,186 | ||
Weighted average number of Units outstanding | 13,560,188 | 13,560,188 | ||||
Weighted average distributions per Unit | $ | 0.25 | $ | 0.24 | ||
Organization_and_Limited_Liabi1
Organization and Limited Liability Company Matters (Narrative) (Details) (USD $) | 0 Months Ended | 73 Months Ended | 185 Months Ended | |||
Nov. 30, 2000 | Jan. 13, 1999 | Dec. 07, 1998 | Dec. 31, 2006 | Dec. 31, 2013 | Dec. 31, 2012 | |
Organization And Limited Liability Company Matters Abstract [Abstract] | ' | ' | ' | ' | ' | ' |
Business cessation date | ' | ' | ' | ' | 31-Dec-19 | ' |
Public offering of Limited Liability Company Units | ' | ' | 15,000,000 | ' | ' | ' |
Public offering of Limited Liability Company Units, price per unit | ' | ' | $10 | ' | ' | ' |
Sale of Limited Liability Company Units, number of units | ' | 120,000 | ' | ' | ' | ' |
Proceeds from sale of Limited Liability Company Units | ' | $1,200,000 | ' | ' | ' | ' |
Contributions received | 135,700,000 | ' | ' | ' | ' | ' |
Contributions unit received | 13,570,188 | ' | ' | ' | ' | ' |
Contributions of capital | 500 | ' | ' | ' | ' | ' |
Capital investment | $100 | ' | ' | ' | ' | ' |
Units issued | ' | ' | ' | ' | 13,560,188 | 13,560,188 |
Units outstanding | ' | ' | ' | ' | 13,560,188 | 13,560,188 |
Reinvestment period | ' | ' | ' | '6 years | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
segment | ||
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Number of operating segments | 1 | ' |
Number of reportable segments | 1 | ' |
Period subject to income tax examination | '3 years | ' |
Provision for franchise fees and state taxes | $26,000 | $40,000 |
Minimum [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Required assets value of financial institutions for cash deposits | 10,000,000,000 | ' |
Operating leases, initial terms | '24 months | ' |
Operating leases, period for non accrual status | '90 days | ' |
Direct financing leases, period for non accrual status | '90 days | ' |
Drydocking equipment period | '30 months | ' |
Maximum [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
U.S. Treaasury instruments maturity period | '90 days | ' |
Cash deposits, insured amount | $250,000 | ' |
Operating leases, initial terms | '120 months | ' |
Operating leases, period of review for impairment | '90 days | ' |
Direct financing leases, period of review for impairment | '90 days | ' |
Drydocking equipment period | '24 months | ' |
Summary_of_Significant_Account4
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 $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenues | $5,809 | $5,814 |
Percentage of total revenue | 100.00% | 100.00% |
Financing lease receivable | 5,521 | 6,959 |
Percentage of long lived assets | 100.00% | 100.00% |
United States [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenues | 5,735 | 5,657 |
Percentage of total revenue | 99.00% | 97.00% |
Financing lease receivable | 5,497 | 6,935 |
Percentage of long lived assets | 100.00% | 100.00% |
Canada [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenues | 74 | 157 |
Percentage of total revenue | 1.00% | 3.00% |
Financing lease receivable | 24 | 24 |
Percentage of long lived assets | 0.00% | 0.00% |
Total International [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenues | 74 | 157 |
Percentage of total revenue | 1.00% | 3.00% |
Financing lease receivable | $24 | $24 |
Percentage of long lived assets | 0.00% | 0.00% |
Recovered_Sheet1
Summary Of Significant Accounting Policies (Schedule of Differences Between Book Value and Tax Basis of Net Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Summary of Significant Accounting Policies [Abstract] | ' | ' | ' |
Financial statement basis of net assets | $7,213 | $7,292 | $8,850 |
Tax basis of net assets (unaudited) | 8,900 | 7,751 | ' |
Difference | ($1,687) | ($459) | ' |
Recovered_Sheet2
Summary Of Significant Accounting Policies (Reconciliation of Net Income Loss Reported in Financial Statements and Federal Tax Return) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of Significant Accounting Policies [Abstract] | ' | ' |
Net income per financial statements | $3,586 | $1,886 |
Adjustment to depreciation expense | 542 | 894 |
Provision for losses and doubtful accounts | -7 | -12 |
Adjustments to revenues / other expenses | 37 | 140 |
Adjustments to gain on sales of assets | 656 | 100 |
Income per federal tax return (unaudited) | $4,814 | $3,008 |
Concentration_of_Credit_Risk_a2
Concentration of Credit Risk and Major Customers (Schedule of Leasing and Lending Revenues) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | ||
Exsif Worldwide Inc. [Member] | ' | ' | |
Concentration Risk [Line Items] | ' | ' | |
Percentage of concentration risk | 45.00% | 37.00% | |
Bee Mar, LLC [Member] | ' | ' | |
Concentration Risk [Line Items] | ' | ' | |
Percentage of concentration risk | ' | [1] | 22.00% |
Transportation, Containers [Member] | ' | ' | |
Concentration Risk [Line Items] | ' | ' | |
Percentage of concentration risk | 57.00% | 46.00% | |
Transportation, Rail [Member] | ' | ' | |
Concentration Risk [Line Items] | ' | ' | |
Percentage of concentration risk | 41.00% | 42.00% | |
Transportation, Other [Member] | ' | ' | |
Concentration Risk [Line Items] | ' | ' | |
Percentage of concentration risk | ' | [1] | 12.00% |
[1] | Less than 10% |
Allowance_for_Credit_Losses_Na
Allowance for Credit Losses (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing lease receivable | $5,521 | $6,959 |
Direct Financing Leases [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Financing lease receivable | $0 | $100 |
Allowance_for_Credit_Losses_Ac
Allowance for Credit Losses (Activity in Allowance for Doubtful Accounts) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Beginning Balance | $10 | $22 |
Reversal of provision | -7 | -12 |
Ending Balance | 3 | 10 |
Accounts Receivable Allowance for Doubtful Accounts [Member] | Operating Leases [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Beginning Balance | 10 | 22 |
Reversal of provision | -7 | -12 |
Ending Balance | 3 | 10 |
Accounts Receivable Allowance for Doubtful Accounts [Member] | Finance Leases [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Beginning Balance | ' | ' |
Reversal of provision | ' | ' |
Ending Balance | ' | ' |
Valuation Adjustments on Financing Receivables [Member] | Finance Leases [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Beginning Balance | ' | ' |
Reversal of provision | ' | ' |
Ending Balance | ' | ' |
Investments_in_Equipment_and_L2
Investments in Equipment and Leases, Net (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Leases Disclosure [Line Items] | ' | ' |
Financing lease receivable | $5,521,000 | $6,959,000 |
Impairment losses recorded | 0 | 0 |
Depreciation of operating lease assets | 676,000 | 1,089,000 |
Average estimated residual value for assets on operating leases | 11.00% | 10.00% |
Contingent rental revenue | 1,800,000 | 2,300,000 |
Net investment in direct financing leases | ' | 100,000 |
Direct Financing Leases [Member] | ' | ' |
Leases Disclosure [Line Items] | ' | ' |
Financing lease receivable | $0 | $100,000 |
Investments_in_Equipment_and_L3
Investments in Equipment and Leases, Net (Investment in Leases) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Leases Disclosure [Line Items] | ' |
Balance December 31, 2012 | $6,959 |
Reclassifications, Additions/ Dispositions | -714 |
Depreciation/ Amortization Expense or Amortization of Leases | -724 |
Balance December 31, 2013 | 5,521 |
Operating Leases [Member] | ' |
Leases Disclosure [Line Items] | ' |
Balance December 31, 2012 | 6,230 |
Reclassifications, Additions/ Dispositions | -1,361 |
Depreciation/ Amortization Expense or Amortization of Leases | -638 |
Balance December 31, 2013 | 4,231 |
Direct Financing Leases [Member] | ' |
Leases Disclosure [Line Items] | ' |
Balance December 31, 2012 | 100 |
Reclassifications, Additions/ Dispositions | -52 |
Depreciation/ Amortization Expense or Amortization of Leases | -48 |
Balance December 31, 2013 | 0 |
Assets Held For Sale or Lease [Member] | ' |
Leases Disclosure [Line Items] | ' |
Balance December 31, 2012 | 629 |
Reclassifications, Additions/ Dispositions | 699 |
Depreciation/ Amortization Expense or Amortization of Leases | -38 |
Balance December 31, 2013 | $1,290 |
Investments_in_Equipment_and_L4
Investments in Equipment and Leases, Net (Property on Operating Leases) (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
Transportation, Containers [Member] | Transportation, Rail [Member] | Marine Vessels [Member] | Transportation, Other [Member] | Transportation, Other [Member] | Total Property Subject to or Available for Operating Lease [Member] | Less Accumulated Depreciation [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Balance December 31, 2012 | $6,230 | $19,380 | $13,125 | $4,793 | $640 | $640 | $37,938 | ($31,708) |
Additions | -638 | ' | ' | ' | ' | ' | ' | -638 |
Reclassifications or Dispositions | -1,361 | -3,506 | -1,772 | -4,793 | ' | ' | -10,071 | 8,710 |
Balance December 31, 2013 | $4,231 | $15,874 | $11,353 | ' | $640 | $640 | $27,867 | ($23,636) |
Investments_in_Equipment_and_L5
Investments in Equipment and Leases, Net (Future Minimum Lease Payments Receivable) (Details) (Operating Leases [Member], USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Leases [Member] | ' |
Leases Disclosure [Line Items] | ' |
Year ending December 31, 2014 | $1,200 |
2015 | 572 |
2016 | 284 |
2017 | 267 |
2018 | 78 |
Thereafter | 6 |
Future minimum payments receivable, total | $2,407 |
Related_Party_Transactions_Aff
Related Party Transactions (Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transactions [Abstract] | ' | ' |
Asset management fees to Managing Member | $212 | $278 |
Cost reimbursements to Managing Member | 295 | 452 |
Related party transaction, total | $507 | $730 |
Gain_Contingencies_Narrative_D
Gain Contingencies (Narrative) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
item | |
Gain Contingencies [Line Items] | ' |
Gain contingency, number of vessels | 3 |
Gain contingency, unrecorded amount | $2,800 |
Gain contingency, percentage of gross proceeds | 10.00% |
ATEL Capital Equipment Fund VIII, LLC [Member] | ' |
Gain Contingencies [Line Items] | ' |
Gain contingency, unrecorded amount | $350 |
Members_Capital_Narrative_Deta
Members' Capital (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Other Members Capital Account [Line Items] | ' | ' |
Other Members capital account, units issued | 13,560,188 | 13,560,188 |
Other Members capital account, units outstanding | 13,560,188 | 13,560,188 |
Other Members capital account, units authorized | 15,000,000 | 15,000,000 |
Potential repurchase price of Units as a percentage of holder's capital account | 100.00% | ' |
Initial [Member] | ' | ' |
Other Members Capital Account [Line Items] | ' | ' |
Other Members capital account, units issued | 50 | 50 |
Other Members [Member] | ' | ' |
Other Members Capital Account [Line Items] | ' | ' |
Allocation of net income, net losses and distribution allocation percentage | 92.50% | ' |
Managing Member [Member] | ' | ' |
Other Members Capital Account [Line Items] | ' | ' |
Allocation of net income, net losses and distribution allocation percentage | 7.50% | ' |
Members_Capital_Distributions_
Members' Capital (Distributions to Other Members) (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Members Capital [Abstract] | ' | ' |
Distributions declared | $3,390 | $3,186 |
Weighted average number of Units outstanding | 13,560,188 | 13,560,188 |
Distributions declared or paid | $0.25 | $0.24 |