Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 31, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
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 Units Outstanding | ' | 13,560,188 |
Balance_Sheets
Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $2,945 | $1,641 |
Accounts receivable, net of allowance for doubtful accounts of $0 as of June 30, 2014 and $3 as of December 31, 2013 | 521 | 574 |
Prepaid expenses and other assets | 14 | 19 |
Investments in equipment and leases, net of accumulated depreciation of $29,302 as of June 30, 2014 and $31,907 as of December 31, 2013 | 4,741 | 5,521 |
Total assets | 8,221 | 7,755 |
Accounts payable and accrued liabilities: | ' | ' |
Managing Member | 23 | 369 |
Other | 114 | 99 |
Unearned operating lease income | 25 | 74 |
Total liabilities | 162 | 542 |
Commitments and contingencies | ' | ' |
Members' capital: | ' | ' |
Managing Member | ' | ' |
Other Members | 8,059 | 7,213 |
Total Members' capital | 8,059 | 7,213 |
Total liabilities and Members' capital | $8,221 | $7,755 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Balance Sheets [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $0 | $3 |
Investments in equipment and leases, accumulated depreciation | $29,302 | $31,907 |
Statements_of_Income
Statements of Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Leasing activities: | ' | ' | ' | ' |
Operating leases | $855 | $1,014 | $1,636 | $2,142 |
Gain on sales of assets | 60 | 1,519 | 181 | 1,559 |
Other revenue | ' | 1 | ' | 108 |
Total revenues | 915 | 2,534 | 1,817 | 3,809 |
Expenses: | ' | ' | ' | ' |
Depreciation of operating lease assets | 124 | 162 | 258 | 376 |
Asset management fees to Managing Member | 23 | 29 | 43 | 61 |
Vessel maintenance | ' | -28 | ' | 107 |
Railcar maintenance | 121 | 105 | 180 | 187 |
Cost reimbursements to Managing Member | 64 | 72 | 127 | 152 |
Other management fees | 25 | 23 | 46 | 50 |
Railcar storage fees | 35 | 17 | 70 | 37 |
Professional fees | 36 | 30 | 114 | 81 |
Insurance | 15 | -7 | 26 | 1 |
Reversal of provision for doubtful accounts | ' | ' | -3 | -10 |
Taxes on income and franchise fees | 1 | 13 | 2 | 26 |
Postage | 2 | 2 | 5 | 6 |
Printing and photocopying | 7 | ' | 11 | 8 |
Freight and shipping | 8 | 4 | 47 | 12 |
Other | 25 | 23 | 45 | 48 |
Total expenses | 486 | 445 | 971 | 1,142 |
Net income | 429 | 2,089 | 846 | 2,667 |
Net income: | ' | ' | ' | ' |
Managing Member | ' | ' | ' | ' |
Other Members | 429 | 2,089 | 846 | 2,667 |
Net income | $429 | $2,089 | $846 | $2,667 |
Net income per Limited Liability Company Unit (Other Members) | $0.03 | $0.15 | $0.06 | $0.20 |
Weighted average number of Units outstanding | 13,560,188 | 13,560,188 | 13,560,188 | 13,560,188 |
Statements_of_Changes_in_Membe
Statements of Changes in Members' Capital (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Beginning Balance | ' | $7,213 | $7,292 | $7,292 |
Distributions to Other Members | ' | ' | ' | -3,390 |
Distributions to Managing Member | ' | ' | ' | -275 |
Net income | 429 | 846 | 2,667 | 3,586 |
Ending Balance | 8,059 | 8,059 | ' | 7,213 |
Other Members [Member] | ' | ' | ' | ' |
Beginning Balance (in units) | ' | 13,560,188 | 13,560,188 | 13,560,188 |
Beginning Balance | ' | 7,213 | 7,292 | 7,292 |
Distributions to Other Members | ' | ' | ' | -3,390 |
Net income | ' | 846 | ' | 3,311 |
Ending Balance (in units) | 13,560,188 | 13,560,188 | ' | 13,560,188 |
Ending Balance | 8,059 | 8,059 | ' | 7,213 |
Managing Member [Member] | ' | ' | ' | ' |
Distributions to Managing Member | ' | ' | ' | -275 |
Net income | ' | ' | ' | $275 |
Statements_of_Changes_in_Membe1
Statements of Changes in Members' Capital (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Statements of Changes in Members' Capital [Abstract] | ' | ' | ' | ' | ' |
Distributions to Other Members ($0.25 per Unit) | $0 | $0 | $0 | $0 | $0.25 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities: | ' | ' | ' | ' |
Net income | $429 | $2,089 | $846 | $2,667 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' | ' | ' |
Gain on sales of assets | -60 | -1,519 | -181 | -1,559 |
Depreciation of operating lease assets | 124 | 162 | 258 | 376 |
Reversal of provision for doubtful accounts | ' | ' | -3 | -10 |
Changes in operating assets and liabilities: | ' | ' | ' | ' |
Accounts receivable | 26 | 19 | 56 | 103 |
Prepaid expenses and other assets | 2 | 2 | 5 | 5 |
Accounts payable, Managing Member | -23 | -11 | -346 | -464 |
Accounts payable, other | 20 | -119 | 15 | -86 |
Unearned operating lease income | -37 | -20 | -49 | -40 |
Net cash provided by operating activities | 481 | 603 | 601 | 992 |
Investing activities: | ' | ' | ' | ' |
Proceeds from sales of lease assets | 257 | 1,680 | 703 | 1,760 |
Principal payments received on direct financing leases | ' | 24 | ' | 48 |
Net cash provided by investing activities | 257 | 1,704 | 703 | 1,808 |
Financing activities: | ' | ' | ' | ' |
Net cash provided by financing activities | ' | ' | ' | ' |
Net increase in cash and cash equivalents | 738 | 2,307 | 1,304 | 2,800 |
Cash and cash equivalents at beginning of period | 2,207 | 1,009 | 1,641 | 516 |
Cash and cash equivalents at end of period | 2,945 | 3,316 | 2,945 | 3,316 |
Supplemental disclosures of cash flow information: | ' | ' | ' | ' |
Cash paid during the period for taxes | $15 | $15 | $15 | $17 |
Organization_and_Limited_Liabi
Organization and Limited Liability Company Matters | 6 Months Ended |
Jun. 30, 2014 | |
Organization And Limited Liability Company Matters [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 and sales activities. The Managing Member or Manager 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, 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 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 June 30, 2014, 13,560,188 Units remain 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 5). 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 June 30, 2014, the Company continues in the liquidation phase of its life cycle as defined in the Operating Agreement. | |
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, 2013, filed with the Securities and Exchange Commission. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
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 Managing Member, 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 six months ended June 30, 2014 are not necessarily indicative of the results to be expected for the full year. | ||||||||||
Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of 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 June 30, 2014, up until the issuance of the financial statements. No events were noted which would require 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 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. | ||||||||||
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. | ||||||||||
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 six months ended June 30, 2014 and 2013 and long-lived tangible assets as of June 30, 2014 and December 31, 2013 (dollars in thousands): | ||||||||||
For The Six Months Ended June 30, | ||||||||||
2014 | % of Total | 2013 | % of Total | |||||||
Revenue | ||||||||||
United States | $ | 1,817 | 100% | $ | 3,746 | 98% | ||||
Canada | - | 0% | 63 | 2% | ||||||
Total International | - | 0% | 63 | 2% | ||||||
Total | $ | 1,817 | 100% | $ | 3,809 | 100% | ||||
As of June 30, | As of December 31, | |||||||||
2014 | % of Total | 2013 | % of Total | |||||||
Long-lived assets | ||||||||||
United States | $ | 4,741 | 100% | $ | 5,497 | 100% | ||||
Canada | - | 0% | 24 | 0% | ||||||
Total International | - | 0% | 24 | 0% | ||||||
Total | $ | 4,741 | 100% | $ | 5,521 | 100% | ||||
Per Unit data: | ||||||||||
Net income and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the period. | ||||||||||
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. | ||||||||||
Investment_in_Equipment_and_Le
Investment in Equipment and Leases, Net | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Investment in Equipment and Leases, Net [Abstract] | ' | |||||||||||
Investment in Equipment and Leases, Net | ' | |||||||||||
3. Investment in equipment and leases, net: | ||||||||||||
The Company’s investment in leases consists of the following (in thousands): | ||||||||||||
Balance | Reclassifications | Depreciation/ | Balance | |||||||||
December 31, | & | Amortization | June 30, | |||||||||
2013 | Additions / | Expense or | 2014 | |||||||||
Dispositions | Amortization | |||||||||||
of Leases | ||||||||||||
Net investment in operating leases | $ | 4,231 | $ | -30 | $ | -258 | $ | 3,943 | ||||
Assets held for sale or lease, net | 1,290 | -492 | - | 798 | ||||||||
Total | $ | 5,521 | $ | -522 | $ | -258 | $ | 4,741 | ||||
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. The fair value of the assets is determined based on the sum of the discounted estimated future cash flows of the assets. Impairment losses are recorded as an adjustment to the net investment in operating leases. There were no impairment losses recorded during the three and six months ended June 30, 2014 and 2013. | ||||||||||||
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 $124 thousand and $162 thousand for the respective three months ended June 30, 2014 and 2013, and $258 thousand and $376 thousand for the respective six months ended June 30, 2014 and 2013. | ||||||||||||
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 | June 30, | ||||||||||
2013 | 2014 | |||||||||||
Transportation, rail | $ | 11,353 | $ | - | $ | 2,827 | $ | 14,180 | ||||
Containers | 15,874 | - | -3,251 | 12,623 | ||||||||
Other | 640 | - | - | 640 | ||||||||
27,867 | - | -424 | 27,443 | |||||||||
Less accumulated depreciation | -23,636 | -258 | 394 | -23,500 | ||||||||
Total | $ | 4,231 | $ | -258 | $ | -30 | $ | 3,943 | ||||
The average estimated residual value for assets on operating leases was 11% of the assets’ original cost at June 30, 2014 and December 31, 2013. There were no operating leases in non-accrual status at June 30, 2014 and December 31, 2013. | ||||||||||||
The Company may earn 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 $325 thousand and $497 thousand for the respective three months ended June 30, 2014 and 2013, and $684 thousand and $1.0 million for the respective six months ended June 30, 2014 and 2013. | ||||||||||||
Direct financing leases: | ||||||||||||
As of June 30, 2014 and December 31, 2013, the Company had no investment in direct financing leases, as its remaining finance lease matured on July 1, 2013. | ||||||||||||
At June 30, 2014, the aggregate amount of future lease payments associated with operating leases is as follows (in thousands): | ||||||||||||
Operating | ||||||||||||
Leases | ||||||||||||
Six months ending December 31, 2014 | $ | 937 | ||||||||||
Year ending December 31, 2015 | 1,127 | |||||||||||
2016 | 752 | |||||||||||
2017 | 462 | |||||||||||
2018 | 78 | |||||||||||
2019 | 4 | |||||||||||
Thereafter | 2 | |||||||||||
$ | 3,362 | |||||||||||
Related_Party_Transactions
Related Party Transactions | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||
Related Party Transactions | ' | ||||||||||||
4. 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 for 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. | |||||||||||||
During the three and six months ended June 30, 2014 and 2013, AFS and/or affiliates earned fees and billed for reimbursements pursuant to the Operating Agreement as follows (in thousands): | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Asset management fees to Managing Member | $ | 23 | $ | 29 | $ | 43 | $ | 61 | |||||
Cost reimbursements to Managing Member | 64 | 72 | 127 | 152 | |||||||||
$ | 87 | $ | 101 | $ | 170 | $ | 213 | ||||||
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 ending December 31, 2014, 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 | 6 Months Ended |
Jun. 30, 2014 | |
Guarantees [Abstract] | ' |
Guarantees | ' |
5. 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 | 6 Months Ended |
Jun. 30, 2014 | |
Gain Contingencies [Abstract] | ' |
Gain Contingencies | ' |
6. 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. Oral arguments for the appeal of the case in substance were heard June 2, 2014, and on June 6, 2014, the Fifth Circuit Appellate Court rendered its decision denying the appeal. | |
Members_Capital
Members' Capital | 6 Months Ended |
Jun. 30, 2014 | |
Members Capital [Abstract] | ' |
Members' Capital | ' |
7. Members’ capital: | |
As of June 30, 2014 and December 31, 2013, 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 Limited Liability Company Operating Agreement. 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. | |
There were no distributions declared or paid during the three and six months ended June 30, 2014 and 2013. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policy) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
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 Managing Member, 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 six months ended June 30, 2014 are not necessarily indicative of the results to be expected for the full year. | ||||||||||
Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of 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 June 30, 2014, up until the issuance of the financial statements. No events were noted which would require 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 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. | ||||||||||
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. | ||||||||||
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 six months ended June 30, 2014 and 2013 and long-lived tangible assets as of June 30, 2014 and December 31, 2013 (dollars in thousands): | ||||||||||
For The Six Months Ended June 30, | ||||||||||
2014 | % of Total | 2013 | % of Total | |||||||
Revenue | ||||||||||
United States | $ | 1,817 | 100% | $ | 3,746 | 98% | ||||
Canada | - | 0% | 63 | 2% | ||||||
Total International | - | 0% | 63 | 2% | ||||||
Total | $ | 1,817 | 100% | $ | 3,809 | 100% | ||||
As of June 30, | As of December 31, | |||||||||
2014 | % of Total | 2013 | % of Total | |||||||
Long-lived assets | ||||||||||
United States | $ | 4,741 | 100% | $ | 5,497 | 100% | ||||
Canada | - | 0% | 24 | 0% | ||||||
Total International | - | 0% | 24 | 0% | ||||||
Total | $ | 4,741 | 100% | $ | 5,521 | 100% | ||||
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 period. | ||||||||||
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) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
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 six months ended June 30, 2014 and 2013 and long-lived tangible assets as of June 30, 2014 and December 31, 2013 (dollars in thousands): | ||||||||||
For The Six Months Ended June 30, | ||||||||||
2014 | % of Total | 2013 | % of Total | |||||||
Revenue | ||||||||||
United States | $ | 1,817 | 100% | $ | 3,746 | 98% | ||||
Canada | - | 0% | 63 | 2% | ||||||
Total International | - | 0% | 63 | 2% | ||||||
Total | $ | 1,817 | 100% | $ | 3,809 | 100% | ||||
As of June 30, | As of December 31, | |||||||||
2014 | % of Total | 2013 | % of Total | |||||||
Long-lived assets | ||||||||||
United States | $ | 4,741 | 100% | $ | 5,497 | 100% | ||||
Canada | - | 0% | 24 | 0% | ||||||
Total International | - | 0% | 24 | 0% | ||||||
Total | $ | 4,741 | 100% | $ | 5,521 | 100% | ||||
Investment_in_Equipment_and_Le1
Investment in Equipment and Leases, Net (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Investment 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 | June 30, | |||||||||
2013 | Additions / | Expense or | 2014 | |||||||||
Dispositions | Amortization | |||||||||||
of Leases | ||||||||||||
Net investment in operating leases | $ | 4,231 | $ | -30 | $ | -258 | $ | 3,943 | ||||
Assets held for sale or lease, net | 1,290 | -492 | - | 798 | ||||||||
Total | $ | 5,521 | $ | -522 | $ | -258 | $ | 4,741 | ||||
Property on Operating Leases | ' | |||||||||||
Property on operating leases consists of the following (in thousands): | ||||||||||||
Balance | Additions | Reclassifications | Balance | |||||||||
December 31, | or Dispositions | June 30, | ||||||||||
2013 | 2014 | |||||||||||
Transportation, rail | $ | 11,353 | $ | - | $ | 2,827 | $ | 14,180 | ||||
Containers | 15,874 | - | -3,251 | 12,623 | ||||||||
Other | 640 | - | - | 640 | ||||||||
27,867 | - | -424 | 27,443 | |||||||||
Less accumulated depreciation | -23,636 | -258 | 394 | -23,500 | ||||||||
Total | $ | 4,231 | $ | -258 | $ | -30 | $ | 3,943 | ||||
Future Minimum Lease Payments Receivable | ' | |||||||||||
At June 30, 2014, the aggregate amount of future lease payments associated with operating leases is as follows (in thousands): | ||||||||||||
Operating | ||||||||||||
Leases | ||||||||||||
Six months ending December 31, 2014 | $ | 937 | ||||||||||
Year ending December 31, 2015 | 1,127 | |||||||||||
2016 | 752 | |||||||||||
2017 | 462 | |||||||||||
2018 | 78 | |||||||||||
2019 | 4 | |||||||||||
Thereafter | 2 | |||||||||||
$ | 3,362 | |||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||
Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement | ' | ||||||||||||
During the three and six months ended June 30, 2014 and 2013, AFS and/or affiliates earned fees and billed for reimbursements pursuant to the Operating Agreement as follows (in thousands): | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Asset management fees to Managing Member | $ | 23 | $ | 29 | $ | 43 | $ | 61 | |||||
Cost reimbursements to Managing Member | 64 | 72 | 127 | 152 | |||||||||
$ | 87 | $ | 101 | $ | 170 | $ | 213 | ||||||
Organization_and_Limited_Liabi1
Organization and Limited Liability Company Matters (Narrative) (Details) (USD $) | 0 Months Ended | 73 Months Ended | 191 Months Ended | |||
Nov. 30, 2000 | Jan. 13, 1999 | Dec. 07, 1998 | Dec. 31, 2006 | Jun. 30, 2014 | Dec. 31, 2013 | |
Organization And Limited Liability Company Matters [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 Units 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) | 6 Months Ended |
Jun. 30, 2014 | |
segment | |
Summary of Significant Accounting Policies [Abstract] | ' |
Number of reportable segments | 1 |
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 $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | $915 | $2,534 | $1,817 | $3,809 | ' |
Percentage of total revenue | ' | ' | 100.00% | 100.00% | ' |
Long-lived assets | 4,741 | ' | 4,741 | ' | 5,521 |
Percentage of long-lived assets | 100.00% | ' | 100.00% | ' | 100.00% |
United States [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | ' | ' | 1,817 | 3,746 | ' |
Percentage of total revenue | ' | ' | 100.00% | 98.00% | ' |
Long-lived assets | 4,741 | ' | 4,741 | ' | 5,497 |
Percentage of long-lived assets | 100.00% | ' | 100.00% | ' | 100.00% |
Canada [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | 63 | ' |
Percentage of total revenue | ' | ' | 0.00% | 2.00% | ' |
Long-lived assets | ' | ' | ' | ' | 24 |
Percentage of long-lived assets | 0.00% | ' | 0.00% | ' | 0.00% |
Total International [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | 63 | ' |
Percentage of total revenue | ' | ' | 0.00% | 2.00% | ' |
Long-lived assets | ' | ' | ' | ' | $24 |
Percentage of long-lived assets | 0.00% | ' | 0.00% | ' | 0.00% |
Investment_in_Equipment_and_Le2
Investment in Equipment and Leases, Net (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Investment in Equipment and Leases, Net [Abstract] | ' | ' | ' | ' | ' |
Depreciation of operating lease assets | $124 | $162 | $258 | $376 | ' |
Average estimated residual value for assets on operating leases | 11.00% | ' | 11.00% | ' | 11.00% |
Contingent rental revenue | 325 | 497 | 684 | 1,000 | ' |
Net investment in direct financing leases | $0 | ' | $0 | ' | $0 |
Investment_in_Equipment_and_Le3
Investment in Equipment and Leases, Net (Investment in Leases) (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Leases Disclosure [Line Items] | ' |
Balance December 31, 2013 | $5,521 |
Reclassifications, Additions/ Dispositions | -522 |
Depreciation/ Amortization Expense or Amortization of Leases | -258 |
Balance June 30, 2014 | 4,741 |
Operating Leases [Member] | ' |
Leases Disclosure [Line Items] | ' |
Balance December 31, 2013 | 4,231 |
Reclassifications, Additions/ Dispositions | -30 |
Depreciation/ Amortization Expense or Amortization of Leases | -258 |
Balance June 30, 2014 | 3,943 |
Assets Held For Sale or Lease [Member] | ' |
Leases Disclosure [Line Items] | ' |
Balance December 31, 2013 | 1,290 |
Reclassifications, Additions/ Dispositions | -492 |
Balance June 30, 2014 | $798 |
Investment_in_Equipment_and_Le4
Investment in Equipment and Leases, Net (Property on Operating Leases) (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2013 | $4,231 |
Additions | -258 |
Reclassifications or Dispositions | -30 |
Balance June 30, 2014 | 3,943 |
Transportation, Rail [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2013 | 11,353 |
Additions | ' |
Reclassifications or Dispositions | 2,827 |
Balance June 30, 2014 | 14,180 |
Transportation, Containers [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2013 | 15,874 |
Additions | ' |
Reclassifications or Dispositions | -3,251 |
Balance June 30, 2014 | 12,623 |
Transportation, Other [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2013 | 640 |
Additions | ' |
Balance June 30, 2014 | 640 |
Total Property Subject to or Available For Operating Lease [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2013 | 27,867 |
Additions | ' |
Reclassifications or Dispositions | -424 |
Balance June 30, 2014 | 27,443 |
Less Accumulated Depreciation [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2013 | -23,636 |
Additions | -258 |
Reclassifications or Dispositions | 394 |
Balance June 30, 2014 | ($23,500) |
Investment_in_Equipment_and_Le5
Investment in Equipment and Leases, Net (Future Minimum Lease Payments Receivable) (Details) (Operating Leases [Member], USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases [Member] | ' |
Leases Disclosure [Line Items] | ' |
Six months ending December 31, 2014 | $937 |
Year ending December 31, 2015 | 1,127 |
2016 | 752 |
2017 | 462 |
2018 | 78 |
2019 | 4 |
Thereafter | 2 |
Future minimum payments receivable, total | $3,362 |
Related_Party_Transactions_Aff
Related Party Transactions (Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Related Party Transactions [Abstract] | ' | ' | ' | ' |
Asset management fees to Managing Member | $23 | $29 | $43 | $61 |
Cost reimbursements to Managing Member | 64 | 72 | 127 | 152 |
Related party transaction, total | $87 | $101 | $170 | $213 |
Gain_Contingencies_Narrative_D
Gain Contingencies (Narrative) (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
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) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Other Members Capital Account [Line Items] | ' | ' | ' | ' | ' |
Other Members capital account, units issued | 13,560,188 | ' | 13,560,188 | ' | 13,560,188 |
Other Members capital account, units outstanding | 13,560,188 | ' | 13,560,188 | ' | 13,560,188 |
Other Members capital account, units authorized | 15,000,000 | ' | 15,000,000 | ' | 15,000,000 |
Potential repurchase price of Units as a percentage of holder's capital account | ' | ' | 100.00% | ' | ' |
Distributions declared or paid | $0 | $0 | $0 | $0 | $0.25 |
Initial [Member] | ' | ' | ' | ' | ' |
Other Members Capital Account [Line Items] | ' | ' | ' | ' | ' |
Other Members capital account, units issued | 50 | ' | 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% | ' | ' |