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 IX LLC | ' |
Entity Central Index Key | '0001125264 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Trading Symbol | 'zzhjc | ' |
Entity Units Outstanding | ' | 12,055,016 |
Balance_Sheets
Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $5,134 | $4,738 |
Accounts receivable, net of allowance for doubtful accounts of $1 at June 30, 2014 and $3 at December 31, 2013 | 591 | 585 |
Notes receivable, net of unearned interest income of $37 at June 30, 2014 and $57 at December 31, 2013 | 427 | 526 |
Prepaid expenses and other assets | 51 | 58 |
Investment in securities | 5 | 5 |
Fair value of warrants | 85 | 177 |
Investments in equipment and leases, net of accumulated depreciation of $26,020 June 30, 2014 and $28,006 at December 31, 2013 | 17,133 | 19,890 |
Total assets | 23,426 | 25,979 |
Accounts payable and accrued liabilities: | ' | ' |
Managing Member | 43 | 35 |
Other | 197 | 306 |
Non-recourse debt | 10,858 | 13,105 |
Unearned operating lease income | 133 | 186 |
Total liabilities | 11,231 | 13,632 |
Commitments and contingencies | ' | ' |
Members' capital: | ' | ' |
Managing Member | ' | ' |
Other Members | 12,195 | 12,347 |
Total Members' capital | 12,195 | 12,347 |
Total liabilities and Members' capital | $23,426 | $25,979 |
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 | $1 | $3 |
Notes receivable, unearned interest income | 37 | 57 |
Investments in equipment and leases, accumulated depreciation | $26,020 | $28,006 |
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 and lending activities: | ' | ' | ' | ' |
Operating leases | $1,259 | $1,498 | $2,612 | $2,940 |
Direct financing leases | 628 | 743 | 1,284 | 1,513 |
Interest on notes receivable | 10 | 15 | 20 | 35 |
Gain on sales of lease assets and early termination of notes receivable | 49 | 644 | 1,081 | 874 |
Unrealized loss on fair valuation of warrants | -75 | ' | -92 | ' |
Gain on sales or dispositions of securities and warrants | 44 | ' | 44 | 1 |
Other revenue | 48 | 25 | 68 | 134 |
Total revenues | 1,963 | 2,925 | 5,017 | 5,497 |
Expenses: | ' | ' | ' | ' |
Depreciation of operating lease assets | 369 | 598 | 749 | 1,285 |
Asset management fees to Managing Member and/or affiliates | 80 | 94 | 166 | 188 |
Cost reimbursements to Managing Member and/or affiliates | 141 | 170 | 281 | 353 |
Reversal of provision for credit losses | -2 | -26 | -2 | -26 |
Impairment losses | ' | 156 | ' | 156 |
Amortization of initial direct costs | 3 | 4 | 6 | 9 |
Other management fees | 6 | 7 | 14 | 20 |
Interest expense | 185 | 257 | 388 | 531 |
Professional fees | 18 | 12 | 81 | 62 |
Outside services | 14 | 17 | 34 | 31 |
Insurance | 11 | 16 | 26 | 32 |
Marine vessel maintenance and other operating costs | ' | 8 | ' | 110 |
Railcar and equipment maintenance | 37 | 27 | 78 | 86 |
Franchise fees and state taxes | 17 | 30 | 2 | 70 |
Other | 44 | 36 | 84 | 98 |
Total operating expenses | 923 | 1,406 | 1,907 | 3,005 |
Other expense, net | ' | -2 | -3 | -1 |
Net income | 1,040 | 1,517 | 3,107 | 2,491 |
Net income: | ' | ' | ' | ' |
Managing Member | 98 | 146 | 245 | 293 |
Other Members | 942 | 1,371 | 2,862 | 2,198 |
Net income | $1,040 | $1,517 | $3,107 | $2,491 |
Net income per Limited Liability Company Unit (Other Members) | $0.08 | $0.11 | $0.24 | $0.18 |
Weighted average number of Units outstanding | 12,055,016 | 12,055,016 | 12,055,016 | 12,055,016 |
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 | ' | $12,347 | $14,940 | $14,940 |
Distributions to Other Members | -1,206 | -3,014 | -3,616 | -7,233 |
Distributions to Managing Member | ' | -245 | ' | -586 |
Net income | 1,040 | 3,107 | 2,491 | 5,226 |
Ending Balance | 12,195 | 12,195 | ' | 12,347 |
Other Members [Member] | ' | ' | ' | ' |
Beginning Balance (in units) | ' | 12,055,016 | 12,055,016 | 12,055,016 |
Beginning Balance | ' | 12,347 | 14,940 | 14,940 |
Distributions to Other Members | ' | -3,014 | ' | -7,233 |
Net income | ' | 2,862 | ' | 4,640 |
Ending Balance (in units) | 12,055,016 | 12,055,016 | ' | 12,055,016 |
Ending Balance | 12,195 | 12,195 | ' | 12,347 |
Managing Member [Member] | ' | ' | ' | ' |
Distributions to Managing Member | ' | -245 | ' | -586 |
Net income | ' | $245 | ' | $586 |
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, per unit | $0.10 | $0.15 | $0.25 | $0.30 | $0.60 |
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 | $1,040 | $1,517 | $3,107 | $2,491 |
Adjustment to reconcile net income to cash provided by operating activities: | ' | ' | ' | ' |
Gain on sales of lease assets and early termination of notes receivable | -49 | -644 | -1,081 | -874 |
Gain on sales or dispositions of securities and warrants | -44 | ' | -44 | -1 |
Unrealized loss on fair valuation of warrants | 75 | ' | 92 | ' |
Depreciation of operating lease assets | 369 | 598 | 749 | 1,285 |
Amortization of initial direct costs | 3 | 4 | 6 | 9 |
Reversal of provision for credit losses | -2 | -26 | -2 | -26 |
Impairment losses | ' | 156 | ' | 156 |
Changes in operating assets and liabilities: | ' | ' | ' | ' |
Accounts receivable | -44 | 214 | 40 | 326 |
Prepaid expenses and other assets | 2 | 4 | 7 | 9 |
Accounts payable, Managing Member | -25 | -16 | 8 | -17 |
Accounts payable, other | -52 | -120 | -109 | -121 |
Unearned operating lease income | -20 | -56 | -53 | -134 |
Net cash provided by operating activities | 1,253 | 1,631 | 2,720 | 3,103 |
Investing activities: | ' | ' | ' | ' |
Proceeds from sales of lease assets and early termination of notes receivable | 315 | 1,712 | 2,141 | 2,604 |
Proceeds from sales or dispositions of securities and warrants | ' | ' | ' | 1 |
Principal payments received on direct financing leases | 486 | 398 | 942 | 777 |
Principal payments received on notes receivable | 46 | 74 | 99 | 202 |
Net cash provided by investing activities | 847 | 2,184 | 3,182 | 3,584 |
Financing activities: | ' | ' | ' | ' |
Repayments of non-recourse debt | -1,133 | -1,061 | -2,247 | -2,104 |
Net cash used in financing activities | -2,437 | -3,015 | -5,506 | -6,013 |
Net (decrease) increase in cash and cash equivalents | -337 | 800 | 396 | 674 |
Cash and cash equivalents at beginning of period | 5,471 | 5,091 | 4,738 | 5,217 |
Cash and cash equivalents at end of period | 5,134 | 5,891 | 5,134 | 5,891 |
Supplemental disclosures of cash flow information: | ' | ' | ' | ' |
Cash paid during the period for interest | 191 | 262 | 400 | 542 |
Cash paid during the period for taxes | 50 | 76 | 56 | 76 |
Other Members [Member] | ' | ' | ' | ' |
Operating activities: | ' | ' | ' | ' |
Net income | ' | ' | 2,862 | ' |
Financing activities: | ' | ' | ' | ' |
Distributions to Members | -1,206 | -1,808 | -3,014 | -3,616 |
Managing Member [Member] | ' | ' | ' | ' |
Operating activities: | ' | ' | ' | ' |
Net income | ' | ' | 245 | ' |
Financing activities: | ' | ' | ' | ' |
Distributions to Members | ($98) | ($146) | ($245) | ($293) |
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 IX, LLC (the “Company” or the “Fund”) was formed under the laws of the State of California on September 27, 2000 for the purpose of engaging in the sale of limited liability company investment units and acquiring equipment to engage in equipment leasing, lending and sales activities, primarily in the United States. 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, 2020. Contributions in the amount of $600 were received as of December 31, 2000, $100 of which represented AFS’s continuing interest, and $500 of which represented the initial Member’s capital investment. | |
The Company conducted a public offering of 15,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. On February 21, 2001, 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). As of April 3, 2001, the Company had received subscriptions for 753,050 Units ($7.5 million), thus exceeding the $7.5 million minimum requirement for Pennsylvania, and AFS requested that the remaining funds in escrow (from Pennsylvania investors) be released to the Company. | |
As of January 15, 2003, the offering was terminated. As of that date, the Company had received subscriptions for 12,065,266 Units ($120.7 million). Subsequent to January 15, 2003, Units totaling 10,250 were rescinded or repurchased and funds returned to investors (net of distributions paid and allocated syndication costs, as applicable). As of June 30, 2014, 12,055,016 Units remain issued and outstanding. | |
The Company’s principal objectives are 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 on December 31, 2009 and (iii) provides additional distributions following the Reinvestment Period and until all equipment has been sold. The Company is governed by the Limited Liability Company Operating Agreement (“Operating Agreement”), as amended. On January 1, 2010, the Company commenced liquidation phase activities pursuant to the guidelines of the Operating Agreement. | |
Pursuant to the terms of the Operating Agreement, AFS receives 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. | |
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 impact 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 unaudited financial statements, the Managing Member has reviewed 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. | |||||||||||
Use of estimates: | |||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and for determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable. | |||||||||||
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 primary geographic regions in which the Company seeks leasing opportunities are North America and Europe. 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): | |||||||||||
Six Months Ended June 30, | |||||||||||
2014 | % of Total | 2013 | % of Total | ||||||||
Revenue | |||||||||||
United States | $ | 4,964 | 99% | $ | 5,287 | 96% | |||||
Canada | - | 0% | 127 | 2% | |||||||
United Kingdom | 53 | 1% | 83 | 2% | |||||||
Total International | 53 | 1% | 210 | 4% | |||||||
Total | $ | 5,017 | 100% | $ | 5,497 | 100% | |||||
As of June 30, | As of December 31, | ||||||||||
2014 | % of Total | 2013 | % of Total | ||||||||
Long-lived assets | |||||||||||
United States | $ | 17,046 | 99% | $ | 19,803 | 100% | |||||
United Kingdom | 87 | 1% | 87 | 0% | |||||||
Total International | 87 | 1% | 87 | 0% | |||||||
Total | $ | 17,133 | 100% | $ | 19,890 | 100% | |||||
Investment in securities: | |||||||||||
Purchased securities | |||||||||||
Purchased securities are generally not registered for public sale and are carried at cost. Such securities are adjusted to fair value if the fair value is less than the carrying value and such impairment is deemed by the Managing Member to be other than temporary. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. There were neither impaired securities at June 30, 2014 and December 31, 2013 nor investment securities sold or disposed of during the three and six months ended June 30, 2014 and 2013. | |||||||||||
Warrants | |||||||||||
Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried at an estimated fair value on the balance sheet at the end of the period, as determined by the Managing Member. During the three and six months ended June 30, 2014, the Company recorded unrealized losses of $75 thousand and $92 thousand, respectively, on fair valuation of its warrants. Such unrealized loss reduced the estimated fair value of the Company’s portfolio of warrants to $85 thousand at June 30, 2014 from $177 thousand at December 31, 2013. There were no unrealized gains or losses recorded during the first six months of 2013. A gain of $44 thousand was recognized on the net exercise of certain warrants during the second quarter of 2014. Such amount also represents total gain for the first six months of 2014. By comparison, there was no net exercise of warrants during the second quarter of 2013; and, total gain recognized on the net exercise of warrants was nominal during the first six months of 2013. | |||||||||||
Other expense, net: | |||||||||||
Other expense, net consisted solely of net losses on foreign exchange transactions. | |||||||||||
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. | |||||||||||
Notes_Receivable_Net
Notes Receivable, Net | 6 Months Ended | ||
Jun. 30, 2014 | |||
Notes Receivable, Net [Abstract] | ' | ||
Notes Receivable, Net | ' | ||
3. Notes receivable, net: | |||
The Company has had various notes receivable from borrowers who have financed the purchase of equipment through the Company. The notes were secured by the equipment financed. As of June 30, 2014, only one note receivable remained unsettled with a net balance of $427 thousand outstanding. Such note bears an annual interest rate of 8.5% and matures in 2016. | |||
There were no notes receivable deemed impaired or in non-accrual status as of June 30, 2014 and December 31, 2013. | |||
During the first quarter of 2013, the Company realized a $54 thousand gain on the full settlement of an impaired note prior to its scheduled maturity. Such note was originally deemed impaired during the second quarter of 2012, for which the Company recorded a fair value adjustment of $54 thousand to reduce the cost basis of the impaired note. There have been no additional early terminations of notes receivable subsequent to the first quarter of 2013. | |||
As of June 30, 2014, the minimum future payments receivable are as follows (in thousands): | |||
Six months ending December 31, 2014 | $ | 110 | |
Year ending December 31, 2015 | 166 | ||
2016 | 188 | ||
464 | |||
Less: portion representing unearned interest income | -37 | ||
Notes receivable, net | $ | 427 | |
Allowance_for_Credit_Losses
Allowance for Credit Losses | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
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 | |||||||||||||||||||||
Notes | Finance | Operating | Notes | Finance | |||||||||||||||||
Receivable | Leases | Leases | Receivable | Leases | |||||||||||||||||
Balance December 31, 2012 | $ | - | $ | 7 | $ | 48 | $ | 54 | $ | - | $ | 109 | |||||||||
Reversal of provision | - | -7 | -45 | - | - | -52 | |||||||||||||||
Asset disposal | - | - | - | -54 | - | -54 | |||||||||||||||
Balance December 31, 2013 | - | - | 3 | - | - | 3 | |||||||||||||||
Reversal of provision | - | - | -2 | - | - | -2 | |||||||||||||||
Balance June 30, 2014 | $ | - | $ | - | $ | 1 | $ | - | $ | - | $ | 1 | |||||||||
Accounts receivable | |||||||||||||||||||||
Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and notes receivable which are currently due to the Company. | |||||||||||||||||||||
Allowances for doubtful accounts are typically established based upon their aging and historical charge off and collection experience and the creditworthiness of specifically identified lessees and borrowers, and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received. | |||||||||||||||||||||
Accounts receivable 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 periodically reviews the creditworthiness of companies with lease or note payments outstanding less than 90 days. Based upon management’s judgment, such leases or notes may be placed in non-accrual status. Leases or notes 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 receivable is probable. Until such time, revenues on operating leases are recognized on a cash basis. All payments received on amounts billed under direct financing leases contracts and notes receivable are applied only against outstanding principal balances. | |||||||||||||||||||||
Financing receivables | |||||||||||||||||||||
In addition to the allowance established for delinquent accounts receivable, the total allowance related solely to financing receivables also includes anticipated impairment charges on notes receivable and direct financing leases. | |||||||||||||||||||||
Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest when due. If it is determined that a loan is impaired with regard to scheduled payments, the Company will perform an analysis of the note to determine if an impairment valuation reserve is necessary. This analysis considers the estimated cash flows from the note, or the collateral value of the property underlying the note when note repayment is collateral dependent. Any required valuation reserve is charged to earnings when determined; and notes are charged off to the allowance as they are deemed uncollectible. | |||||||||||||||||||||
The asset underlying a direct financing lease contract is considered impaired if the estimated undiscounted future cash flows of the asset are less than its 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. | |||||||||||||||||||||
As of June 30, 2014 and December 31, 2013, the Company’s allowance for credit losses (related solely to financing receivables) and its recorded investment in financing receivables were as follows (in thousands): | |||||||||||||||||||||
30-Jun-14 | Notes Receivable | Finance Leases | Total | ||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||
Ending balance | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | |||||||||||||||
Financing receivables: | |||||||||||||||||||||
Ending balance | $ | 427 | $ | 9,879 | 1 | $ | 10,306 | ||||||||||||||
Ending balance: individually evaluated for impairment | $ | 427 | $ | 9,879 | $ | 10,306 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | |||||||||||||||
1 Includes $8 of unamortized initial direct costs | |||||||||||||||||||||
31-Dec-13 | Notes Receivable | Finance Leases | Total | ||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||
Ending balance | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | |||||||||||||||
Financing receivables: | |||||||||||||||||||||
Ending balance | $ | 526 | $ | 10,823 | 2 | $ | 11,349 | ||||||||||||||
Ending balance: individually evaluated for impairment | $ | 526 | $ | 10,823 | $ | 11,349 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | |||||||||||||||
2 Includes $13 of unamortized initial direct costs | |||||||||||||||||||||
The Company evaluates the credit quality of its financing receivables on a scale equivalent to the following quality indicators related to corporate risk profiles: | |||||||||||||||||||||
Pass – Any account whose lessee/debtor, co-lessee/debtor or any guarantor has a credit rating on publicly traded or privately placed debt issues as rated by Moody’s or S&P for either Senior Unsecured debt, Long Term Issuer rating or Issuer rating that are in the tiers of ratings generally recognized by the investment community as constituting an Investment Grade credit rating; or, has been determined by the Manager to be an Investment Grade Equivalent or High Quality Corporate Credit per its Credit Policy or has a Not Rated internal rating by the Manager and the account is not considered by the Chief Credit Officer of the Manager to fall into one of the three risk profiles below. | |||||||||||||||||||||
Special Mention – Any traditional corporate type account with potential weaknesses (e.g. large net losses or major industry downturns) or, any growth capital account that has less than three months of cash as of the end of the calendar quarter to fund their continuing operations. These accounts deserve management’s close attention. If left uncorrected, those potential weaknesses may result in deterioration of the Fund’s receivable at some future date. | |||||||||||||||||||||
Substandard – Any account that is inadequately protected by the current worth and paying capacity of the borrower or of the collateral pledged, if any. Accounts that are so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Fund will sustain some loss as the likelihood of fully collecting all receivables may be questionable if the deficiencies are not corrected. Such accounts are on the Manager’s Credit Watch List. | |||||||||||||||||||||
Doubtful – Any account where the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Accordingly, an account that is so classified is on the Manager’s Credit Watch List, and has been declared in default and the Manager has repossessed, or is attempting to repossess, the equipment it financed. This category includes impaired notes and leases as applicable. | |||||||||||||||||||||
At June 30, 2014 and December 31, 2013, the Company’s financing receivables by credit quality indicator and by class of financing receivables are as follows (excludes initial direct costs) (in thousands): | |||||||||||||||||||||
Notes Receivable | Finance Leases | ||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | 30-Jun-14 | 31-Dec-13 | ||||||||||||||||||
Pass | $ | 427 | $ | 526 | $ | 9,871 | $ | 10,810 | |||||||||||||
Special mention | - | - | - | - | |||||||||||||||||
Substandard | - | - | - | - | |||||||||||||||||
Doubtful | - | - | - | - | |||||||||||||||||
Total | $ | 427 | $ | 526 | $ | 9,871 | $ | 10,810 | |||||||||||||
At June 30, 2014 and December 31, 2013, the investment in financing receivables is aged as follows (in thousands): | |||||||||||||||||||||
30-Jun-14 | 31-60 Days | 61-90 Days | Greater Than | Total | Current | Total Financing | Recorded Investment | ||||||||||||||
Past Due | Past Due | 90 Days | Past Due | Receivables | > 90 Days | ||||||||||||||||
and Accruing | |||||||||||||||||||||
Notes receivable | $ | - | $ | - | $ | - | $ | - | $ | 427 | $ | 427 | $ | - | |||||||
Finance leases | - | - | - | - | 9,871 | 9,871 | - | ||||||||||||||
Total | $ | - | $ | - | $ | - | $ | - | $ | 10,298 | $ | 10,298 | $ | - | |||||||
31-Dec-13 | 31-60 Days | 61-90 Days | Greater Than | Total | Current | Total Financing | Recorded Investment | ||||||||||||||
Past Due | Past Due | 90 Days | Past Due | Receivables | > 90 Days | ||||||||||||||||
and Accruing | |||||||||||||||||||||
Notes receivable | $ | - | $ | - | $ | - | $ | - | $ | 526 | $ | 526 | $ | - | |||||||
Finance leases | - | - | - | - | 10,810 | 10,810 | - | ||||||||||||||
Total | $ | - | $ | - | $ | - | $ | - | $ | 11,336 | $ | 11,336 | $ | - | |||||||
The Company had neither financing receivables in non-accrual status nor impaired financing receivables at both June 30, 2014 and December 31, 2013. Likewise, there were no investments in financing receivables with related accounts receivable past due more than 90 days which were still on an accrual basis at June 30, 2014 and December 31, 2013. | |||||||||||||||||||||
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 | ' | |||||||||||
5. Investment in equipment and leases, net: | ||||||||||||
The Company’s investment in equipment leases consists of the following (in thousands): | ||||||||||||
Balance | Reclassifications, | Depreciation/ | Balance | |||||||||
December 31, | Additions / | Amortization | June 30, | |||||||||
2013 | Dispositions and Impairment Losses | Expense or | 2014 | |||||||||
Amortization | ||||||||||||
of Leases | ||||||||||||
Net investment in operating leases | $ | 8,406 | $ | -727 | $ | -749 | $ | 6,930 | ||||
Net investment in direct financing leases | 10,810 | 3 | -942 | 9,871 | ||||||||
Assets held for sale or lease, net | 656 | -337 | - | 319 | ||||||||
Initial direct costs, net of accumulated | 18 | - | -5 | 13 | ||||||||
amortization of $88 at June 30, | ||||||||||||
2014 and $83 at December 31, 2013 | ||||||||||||
Total | $ | 19,890 | $ | -1,061 | $ | -1,696 | $ | 17,133 | ||||
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. As a result of these reviews, management determined that no impairment losses existed during the three and six months ended June 30, 2014. By comparison, during the second quarter of 2013, the Company deemed certain off-lease equipment to be impaired and recorded fair value adjustment totaling $156 thousand to reduce the cost basis of the equipment. Such amount also represents the total fair value adjustments for the six months ended June 30, 2013. | ||||||||||||
As of June 30, 2014 and December 31, 2013, there were no lease contracts placed in non-accrual status. As of the same dates, the Company had certain other leases that have related accounts receivables aged 90 days or more that had not been placed on non-accrual status. In accordance with Company policy, the related accounts receivables are fully reserved. Management continues to closely monitor these leases for any actual change in collectability status and indication of necessary valuation adjustments. | ||||||||||||
The Company utilizes a straight line depreciation method for equipment in all of the categories currently in its portfolio of operating lease transactions. Depreciation expense on the Company’s equipment was approximately $369 thousand and $598 thousand for the respective three months ended June 30, 2014 and 2013, and was $749 thousand and $1.3 million for the respective six months ended June 30, 2014 and 2013. Initial direct costs amortization expense related to the Company’s operating and direct financing leases totaled $3 thousand and $4 thousand for the respective three months ended June 30, 2014 and 2013, and was $6 thousand and $9 thousand for the respective six months ended June 30, 2014 and 2013. | ||||||||||||
All of the leased property was acquired in years beginning with 2002 through 2010. | ||||||||||||
Operating leases: | ||||||||||||
Property on operating leases consists of the following (in thousands): | ||||||||||||
Balance | Additions | Reclassifications or | Balance | |||||||||
December 31, | Dispositions | June 30, | ||||||||||
2013 | 2014 | |||||||||||
Transportation, rail | $ | 11,635 | $ | - | $ | 549 | $ | 12,184 | ||||
Marine vessels | 11,200 | - | - | 11,200 | ||||||||
Transportation, other | 4,639 | - | - | 4,639 | ||||||||
Manufacturing | 2,174 | - | -447 | 1,727 | ||||||||
Materials handling | 1,383 | - | -255 | 1,128 | ||||||||
Agriculture | 1,151 | - | - | 1,151 | ||||||||
Construction | 759 | - | -189 | 570 | ||||||||
Natural gas compressors | 1,671 | - | -1,671 | - | ||||||||
Other | 57 | - | -40 | 17 | ||||||||
34,669 | - | -2,053 | 32,616 | |||||||||
Less accumulated depreciation | -26,263 | -749 | 1,326 | -25,686 | ||||||||
Total | $ | 8,406 | $ | -749 | $ | -727 | $ | 6,930 | ||||
The average estimated residual value for assets on operating leases was 15% and 17% of the assets’ original cost at June 30, 2014 and December 31, 2013, respectively. There were no operating leases placed in non-accrual status as of 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 a fixed-term lease. 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 $55 thousand and $29 thousand for the respective three months ended June 30, 2014 and 2013, and $97 thousand and $42 thousand for the respective six months ended June 30, 2014 and 2013. | ||||||||||||
Direct financing leases: | ||||||||||||
As of June 30, 2014 investment in direct financing leases consists of material handling and mining equipment. As of December 31, 2013, such investment primarily consisted of mining equipment. The following lists the components of the Company’s investment in direct financing leases as of June 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||
June 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Total minimum lease payments receivable | $ | 10,366 | $ | 12,584 | ||||||||
Estimated residual values of leased | 3,543 | 3,542 | ||||||||||
equipment (unguaranteed) | ||||||||||||
Investment in direct financing leases | 13,909 | 16,126 | ||||||||||
Less unearned income | -4,038 | -5,316 | ||||||||||
Net investment in direct financing leases | $ | 9,871 | $ | 10,810 | ||||||||
There was no investment in direct financing lease assets in non-accrual status at June 30, 2014 and December 31, 2013. | ||||||||||||
At June 30, 2014, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands): | ||||||||||||
Operating | Direct | Total | ||||||||||
Leases | Financing | |||||||||||
Leases | ||||||||||||
Six months ending December 31, 2014 | $ | 1,743 | $ | 2,226 | $ | 3,969 | ||||||
Year ending December 31, 2015 | 2,103 | 4,453 | 6,556 | |||||||||
2016 | 391 | 3,686 | 4,077 | |||||||||
2017 | 345 | 1 | 346 | |||||||||
2018 | 182 | - | 182 | |||||||||
2019 | 182 | - | 182 | |||||||||
Thereafter | 46 | - | 46 | |||||||||
$ | 4,992 | $ | 10,366 | $ | 15,358 | |||||||
Related_Party_Transactions
Related Party Transactions | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
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 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. The Company would be liable for certain future costs to be incurred by AFS to manage the administrative services provided to the Company. | ||||||||||||
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 and general administrative services for the Company 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 managed assets, number of investors or contributed capital based upon the type of cost incurred. The Operating Agreement places an annual limit and a cumulative limit for cost reimbursements to AFS and/or 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 recovered in future years to the extent of the cumulative limit. As of June 30, 2014, the Company has not exceeded the annual and/or cumulative limitations discussed above. | ||||||||||||
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 | |||||||||
Costs reimbursed to Managing Member and/or affiliates | $ | 141 | $ | 170 | $ | 281 | $ | 353 | ||||
Asset management fees to Managing Member and/or affiliates | 80 | 94 | 166 | 188 | ||||||||
$ | 221 | $ | 264 | $ | 447 | $ | 541 | |||||
NonRecourse_Debt
Non-Recourse Debt | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Non-Recourse Debt [Abstract] | ' | ||||||||
Non-Recourse Debt | ' | ||||||||
7. Non-recourse debt: | |||||||||
At June 30, 2014, non-recourse debt consists of notes payable to financial institutions. The notes are due in monthly installments. Interest on the notes is at fixed rates ranging from 6.16% to 6.66%. The notes are secured by assignments of lease payments and pledges of assets. At June 30, 2014, gross operating lease rentals and future payments on direct financing leases totaled approximately $11.4 million over the remaining lease terms; and the carrying value of the pledged assets is $11.8 million. The notes mature from 2015 through 2017. | |||||||||
The non-recourse debt does not contain any material financial covenants. The debt is secured by liens granted by the Company to the non-recourse lenders on (and only on) the discounted lease transactions. The lenders have recourse only to the following collateral: the specific leased equipment; the related lease chattel paper; the lease receivables; and proceeds of the foregoing items. The non-recourse obligation is payable solely out of the respective specific security and the Company does not guarantee (nor is the Company otherwise contractually responsible for) the payment of the non-recourse debt as a general obligation or liability of the Company. Although the Company does not have any direct or general liability in connection with the non-recourse debt apart from the security granted, the Company is directly and generally liable and responsible for certain representations, warranties, and covenants made to the lenders, such as warranties as to genuineness of the transaction parties' signatures, as to the genuineness of the respective lease chattel paper or the transaction as a whole, or as to the Company's good title to or perfected interest in the secured collateral, as well as similar representations, warranties and covenants typically provided by non-recourse borrowers and customary in the equipment finance industry, and are viewed by such industry as being consistent with non-recourse discount financing obligations. Accordingly, as there are no financial covenants or ratios imposed on the Company in connection with the non-recourse debt, the Company has determined that there are no material covenants with respect to the non-recourse debt that warrant footnote disclosure. | |||||||||
Future minimum payments of non-recourse debt are as follows (in thousands): | |||||||||
Principal | Interest | Total | |||||||
Six months ending December 31, 2014 | $ | 2,321 | $ | 326 | $ | 2,647 | |||
Year ending December 31, 2015 | 4,616 | 420 | 5,036 | ||||||
2016 | 3,743 | 133 | 3,876 | ||||||
2017 | 178 | 1 | 179 | ||||||
$ | 10,858 | $ | 880 | $ | 11,738 | ||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
8. Commitments and Contingencies: | |
At June 30, 2014, the Company had no commitments to purchase lease assets or fund investments in notes receivable. | |
Gain Contingency | |
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. | |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2014 | |
Guarantees [Abstract] | ' |
Guarantees | ' |
9. 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. | |
Members_Capital
Members' Capital | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Members' Capital [Abstract] | ' | |||||||||||
Members' Capital | ' | |||||||||||
10. Members’ capital: | ||||||||||||
As of June 30, 2014 and December 31, 2013, 12,055,016 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 Manager’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 Manager on terms it determines to be appropriate under given circumstances, in the event that the Manager 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 Members and 7.5% to AFS. In accordance with the terms of the Operating Agreement, additional allocations of income were made to AFS during the three and six months ended June 30, 2014 and 2013. The amounts allocated were determined to bring AFS’s ending capital account balance to zero at the end of each period. | ||||||||||||
Distributions to the Other Members were as follows (in thousands, except as to Units and per Unit data): | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Distributions declared | $ | 1,206 | $ | 1,808 | $ | 3,014 | $ | 3,616 | ||||
Weighted average number of Units outstanding | 12,055,016 | 12,055,016 | 12,055,016 | 12,055,016 | ||||||||
Weighted average distributions per Unit | $ | 0.10 | $ | 0.15 | $ | 0.25 | $ | 0.30 | ||||
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||
Fair Value Measurements | ' | ||||||||||||||
11. Fair value measurements: | |||||||||||||||
Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows: | |||||||||||||||
Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, generally on a national exchange. | |||||||||||||||
Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market. | |||||||||||||||
Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company's own estimates of assumptions that market participants would use in pricing the asset or liability. | |||||||||||||||
At June 30, 2014 and December 31, 2013, only the Company’s warrants were measured on a recurring basis. There were no non-recurring fair value adjustments as of June 30, 2014. By comparison, the Company recorded non-recurring adjustments to reflect the fair values of certain impaired lease and off-lease assets during 2013. Amounts at December 31, 2013 reflect the fair value of the then existing impaired assets. | |||||||||||||||
The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, information from third party remarketing agents, third party appraisals of collateral and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment, notes receivable and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources. | |||||||||||||||
The measurement methodologies are as follows: | |||||||||||||||
Warrants (recurring) | |||||||||||||||
Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried on the balance sheet at an estimated fair value at the end of the period. The valuation of the warrants was determined using a Black-Scholes formulation of value based upon the stock price(s), the exercise price(s), the volatility of comparable venture companies, and a risk free interest rate for the term(s) of the warrant exercise(s). As of June 30, 2014 and December 31, 2013, the calculated fair value of the Fund’s warrant portfolio approximated $85 thousand and $177 thousand, respectively. Such valuations are classified within Level 3 of the valuation hierarchy. | |||||||||||||||
The following table reconciles the beginning and ending balances of the Company’s Level 3 recurring assets (in thousands): | |||||||||||||||
Level 3 Assets | |||||||||||||||
Balance at December 31, 2013 | $ | 177 | |||||||||||||
Unrealized loss on warrants, net recorded during the period | -92 | ||||||||||||||
Balance at June 30, 2014 | $ | 85 | |||||||||||||
Impaired off-lease equipment (non-recurring) | |||||||||||||||
The Company had no fair value adjustments relative to impaired equipment during the respective three and six months ended June 30, 2014. | |||||||||||||||
During the second quarter of 2013, the Company deemed certain off-lease equipment to be impaired and recorded fair value adjustments totaling $156 thousand. Such amounts also represent the total fair value adjustments for the six months ended June 30, 2013. The adjustments were non-recurring. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair values of such impaired equipment are classified within Level 3 of the valuation hierarchy as the data sources utilized for the valuation of the assets reflect significant inputs that are unobservable in the market. Such valuation utilizes a market approach technique and uses inputs that reflect the sales price of similar assets sold by affiliates and/or information from third party remarketing agents not readily available in the market. As of December 31, 2013, all impaired lease equipment was either disposed of or were re-categorized to off-lease equipment. | |||||||||||||||
The following table presents the fair value measurement of assets measured at fair value on a non-recurring basis and the level within the hierarchy in which the fair value measurements fall at December 31, 2013 (in thousands): | |||||||||||||||
31-Dec-13 | Level 1 Estimated Fair Value | Level 2 Estimated Fair Value | Level 3 Estimated Fair Value | ||||||||||||
Assets measured at fair value on a non-recurring basis: | |||||||||||||||
Impaired off-lease equipment | $ | 3 | $ | - | $ | - | $ | 3 | |||||||
The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value adjustments categorized as Level 3 in the fair value hierarchy at June 30, 2014 and December 31, 2013: | |||||||||||||||
30-Jun-14 | |||||||||||||||
Name | Valuation Frequency | Valuation Technique | Unobservable Inputs | Range of Input Values | |||||||||||
Warrants | Recurring | Black-Scholes Model | Stock price | $1.12 - $50.94 | |||||||||||
Exercise price | $0.16 - $50.94 | ||||||||||||||
Time to maturity (in years) | 0.33 - 5.66 | ||||||||||||||
Risk-free interest rate | 0.04% - 1.79% | ||||||||||||||
Annualized volatility | 16.51% - 100.00% | ||||||||||||||
31-Dec-13 | |||||||||||||||
Name | Valuation Frequency | Valuation Technique | Unobservable Inputs | Range of Input Values | |||||||||||
Warrants | Recurring | Black-Scholes Model | Stock price | $1.12 - $50.94 | |||||||||||
Exercise price | $0.16 - $50.94 | ||||||||||||||
Time to maturity (in years) | 0.62 - 7.00 | ||||||||||||||
Risk-free interest rate | 0.11% - 2.28% | ||||||||||||||
Annualized volatility | 17.80% - 100.00% | ||||||||||||||
Off-lease Equipment | Non-recurring | Market Approach | Third Party Agents' Pricing | $500 | |||||||||||
Quotes - per equipment | (total of $2,500) | ||||||||||||||
Equipment Condition | Poor to Average | ||||||||||||||
The following disclosure of the estimated fair value of financial instruments is made in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification. Fair value estimates, methods and assumptions, set forth below for the Company’s financial instruments, are made solely to comply with the requirements of the Financial Instruments Topic. | |||||||||||||||
The Company has determined the estimated fair value amounts by using market information and valuation methodologies that it considers appropriate and consistent with the fair value accounting guidance. Considerable judgment is required to interpret market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. | |||||||||||||||
Cash and cash equivalents | |||||||||||||||
The recorded amounts of the Company’s cash and cash equivalents approximate fair value because of the liquidity and short-term maturity of these instruments. | |||||||||||||||
Notes receivable | |||||||||||||||
The fair value of the Company’s notes receivable is generally estimated based upon various methodologies deployed by financial and credit management including, but not limited to, credit analysis, third party appraisal and/or discounted cash flow analysis based upon current market valuation techniques and market rates for similar types of lending arrangements, which may consider adjustments for impaired loans as deemed necessary. | |||||||||||||||
Investment in securities | |||||||||||||||
The Company’s investment securities are not registered for public sale and are carried at cost which management believes approximates fair value, as appropriately adjusted for impairment. | |||||||||||||||
Non-recourse debt | |||||||||||||||
The fair value of the Company’s non-recourse debt is estimated using discounted cash flow analyses, based upon current market borrowing rates for similar types of borrowing arrangements. | |||||||||||||||
Commitments and Contingencies | |||||||||||||||
Management has determined that the fair value of contingent liabilities (or guarantees) is not considered material because management believes there has been no event that has occurred wherein a guarantee liability has been incurred or will likely be incurred. | |||||||||||||||
The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at June 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||
Fair Value Measurements at June 30, 2014 | |||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 5,134 | $ | 5,134 | $ | - | $ | - | $ | 5,134 | |||||
Notes receivable, net | 427 | - | - | 427 | 427 | ||||||||||
Investment in securities | 5 | - | - | 5 | 5 | ||||||||||
Warrants | 85 | - | - | 85 | 85 | ||||||||||
Financial liabilities: | |||||||||||||||
Non-recourse debt | 10,858 | - | - | 11,194 | 11,194 | ||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 4,738 | $ | 4,738 | $ | - | $ | - | $ | 4,738 | |||||
Notes receivable, net | 526 | - | - | 526 | 526 | ||||||||||
Investment in securities | 5 | - | - | 5 | 5 | ||||||||||
Warrants | 177 | - | - | 177 | 177 | ||||||||||
Financial liabilities: | |||||||||||||||
Non-recourse debt | 13,105 | - | - | 13,575 | 13,575 | ||||||||||
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 impact 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 unaudited financial statements, the Managing Member has reviewed 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. | |||||||||||
Use of Estimates | ' | ||||||||||
Use of estimates: | |||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and for determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable. | |||||||||||
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 primary geographic regions in which the Company seeks leasing opportunities are North America and Europe. 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): | |||||||||||
Six Months Ended June 30, | |||||||||||
2014 | % of Total | 2013 | % of Total | ||||||||
Revenue | |||||||||||
United States | $ | 4,964 | 99% | $ | 5,287 | 96% | |||||
Canada | - | 0% | 127 | 2% | |||||||
United Kingdom | 53 | 1% | 83 | 2% | |||||||
Total International | 53 | 1% | 210 | 4% | |||||||
Total | $ | 5,017 | 100% | $ | 5,497 | 100% | |||||
As of June 30, | As of December 31, | ||||||||||
2014 | % of Total | 2013 | % of Total | ||||||||
Long-lived assets | |||||||||||
United States | $ | 17,046 | 99% | $ | 19,803 | 100% | |||||
United Kingdom | 87 | 1% | 87 | 0% | |||||||
Total International | 87 | 1% | 87 | 0% | |||||||
Total | $ | 17,133 | 100% | $ | 19,890 | 100% | |||||
Investment in Securities | ' | ||||||||||
Investment in securities: | |||||||||||
Purchased securities | |||||||||||
Purchased securities are generally not registered for public sale and are carried at cost. Such securities are adjusted to fair value if the fair value is less than the carrying value and such impairment is deemed by the Managing Member to be other than temporary. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. There were neither impaired securities at June 30, 2014 and December 31, 2013 nor investment securities sold or disposed of during the three and six months ended June 30, 2014 and 2013. | |||||||||||
Warrants | |||||||||||
Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried at an estimated fair value on the balance sheet at the end of the period, as determined by the Managing Member. During the three and six months ended June 30, 2014, the Company recorded unrealized losses of $75 thousand and $92 thousand, respectively, on fair valuation of its warrants. Such unrealized loss reduced the estimated fair value of the Company’s portfolio of warrants to $85 thousand at June 30, 2014 from $177 thousand at December 31, 2013. There were no unrealized gains or losses recorded during the first six months of 2013. A gain of $44 thousand was recognized on the net exercise of certain warrants during the second quarter of 2014. Such amount also represents total gain for the first six months of 2014. By comparison, there was no net exercise of warrants during the second quarter of 2013; and, total gain recognized on the net exercise of warrants was nominal during the first six months of 2013. | |||||||||||
Other Expense, Net | ' | ||||||||||
Other expense, net: | |||||||||||
Other expense, net consisted solely of net losses on foreign exchange transactions. | |||||||||||
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): | |||||||||||
Six Months Ended June 30, | |||||||||||
2014 | % of Total | 2013 | % of Total | ||||||||
Revenue | |||||||||||
United States | $ | 4,964 | 99% | $ | 5,287 | 96% | |||||
Canada | - | 0% | 127 | 2% | |||||||
United Kingdom | 53 | 1% | 83 | 2% | |||||||
Total International | 53 | 1% | 210 | 4% | |||||||
Total | $ | 5,017 | 100% | $ | 5,497 | 100% | |||||
As of June 30, | As of December 31, | ||||||||||
2014 | % of Total | 2013 | % of Total | ||||||||
Long-lived assets | |||||||||||
United States | $ | 17,046 | 99% | $ | 19,803 | 100% | |||||
United Kingdom | 87 | 1% | 87 | 0% | |||||||
Total International | 87 | 1% | 87 | 0% | |||||||
Total | $ | 17,133 | 100% | $ | 19,890 | 100% | |||||
Notes_Receivable_Net_Tables
Notes Receivable, Net (Tables) | 6 Months Ended | ||
Jun. 30, 2014 | |||
Notes Receivable, Net [Abstract] | ' | ||
Minimum Future Payments Receivable | ' | ||
As of June 30, 2014, the minimum future payments receivable are as follows (in thousands): | |||
Six months ending December 31, 2014 | $ | 110 | |
Year ending December 31, 2015 | 166 | ||
2016 | 188 | ||
464 | |||
Less: portion representing unearned interest income | -37 | ||
Notes receivable, net | $ | 427 | |
Allowance_for_Credit_Losses_Ta
Allowance for Credit Losses (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
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 | |||||||||||||||||||||
Notes | Finance | Operating | Notes | Finance | |||||||||||||||||
Receivable | Leases | Leases | Receivable | Leases | |||||||||||||||||
Balance December 31, 2012 | $ | - | $ | 7 | $ | 48 | $ | 54 | $ | - | $ | 109 | |||||||||
Reversal of provision | - | -7 | -45 | - | - | -52 | |||||||||||||||
Asset disposal | - | - | - | -54 | - | -54 | |||||||||||||||
Balance December 31, 2013 | - | - | 3 | - | - | 3 | |||||||||||||||
Reversal of provision | - | - | -2 | - | - | -2 | |||||||||||||||
Balance June 30, 2014 | $ | - | $ | - | $ | 1 | $ | - | $ | - | $ | 1 | |||||||||
Recorded Investment in Financing Receivables | ' | ||||||||||||||||||||
As of June 30, 2014 and December 31, 2013, the Company’s allowance for credit losses (related solely to financing receivables) and its recorded investment in financing receivables were as follows (in thousands): | |||||||||||||||||||||
30-Jun-14 | Notes Receivable | Finance Leases | Total | ||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||
Ending balance | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | |||||||||||||||
Financing receivables: | |||||||||||||||||||||
Ending balance | $ | 427 | $ | 9,879 | 1 | $ | 10,306 | ||||||||||||||
Ending balance: individually evaluated for impairment | $ | 427 | $ | 9,879 | $ | 10,306 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | |||||||||||||||
1 Includes $8 of unamortized initial direct costs | |||||||||||||||||||||
31-Dec-13 | Notes Receivable | Finance Leases | Total | ||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||
Ending balance | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | |||||||||||||||
Financing receivables: | |||||||||||||||||||||
Ending balance | $ | 526 | $ | 10,823 | 2 | $ | 11,349 | ||||||||||||||
Ending balance: individually evaluated for impairment | $ | 526 | $ | 10,823 | $ | 11,349 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | |||||||||||||||
2 Includes $13 of unamortized initial direct costs | |||||||||||||||||||||
Financing Receivables by Credit Quality Indicator and by Class | ' | ||||||||||||||||||||
At June 30, 2014 and December 31, 2013, the Company’s financing receivables by credit quality indicator and by class of financing receivables are as follows (excludes initial direct costs) (in thousands): | |||||||||||||||||||||
Notes Receivable | Finance Leases | ||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | 30-Jun-14 | 31-Dec-13 | ||||||||||||||||||
Pass | $ | 427 | $ | 526 | $ | 9,871 | $ | 10,810 | |||||||||||||
Special mention | - | - | - | - | |||||||||||||||||
Substandard | - | - | - | - | |||||||||||||||||
Doubtful | - | - | - | - | |||||||||||||||||
Total | $ | 427 | $ | 526 | $ | 9,871 | $ | 10,810 | |||||||||||||
Net Investment in Financing Receivables by Age | ' | ||||||||||||||||||||
At June 30, 2014 and December 31, 2013, the investment in financing receivables is aged as follows (in thousands): | |||||||||||||||||||||
30-Jun-14 | 31-60 Days | 61-90 Days | Greater Than | Total | Current | Total Financing | Recorded Investment | ||||||||||||||
Past Due | Past Due | 90 Days | Past Due | Receivables | > 90 Days | ||||||||||||||||
and Accruing | |||||||||||||||||||||
Notes receivable | $ | - | $ | - | $ | - | $ | - | $ | 427 | $ | 427 | $ | - | |||||||
Finance leases | - | - | - | - | 9,871 | 9,871 | - | ||||||||||||||
Total | $ | - | $ | - | $ | - | $ | - | $ | 10,298 | $ | 10,298 | $ | - | |||||||
31-Dec-13 | 31-60 Days | 61-90 Days | Greater Than | Total | Current | Total Financing | Recorded Investment | ||||||||||||||
Past Due | Past Due | 90 Days | Past Due | Receivables | > 90 Days | ||||||||||||||||
and Accruing | |||||||||||||||||||||
Notes receivable | $ | - | $ | - | $ | - | $ | - | $ | 526 | $ | 526 | $ | - | |||||||
Finance leases | - | - | - | - | 10,810 | 10,810 | - | ||||||||||||||
Total | $ | - | $ | - | $ | - | $ | - | $ | 11,336 | $ | 11,336 | $ | - | |||||||
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 equipment leases consists of the following (in thousands): | ||||||||||||
Balance | Reclassifications, | Depreciation/ | Balance | |||||||||
December 31, | Additions / | Amortization | June 30, | |||||||||
2013 | Dispositions and Impairment Losses | Expense or | 2014 | |||||||||
Amortization | ||||||||||||
of Leases | ||||||||||||
Net investment in operating leases | $ | 8,406 | $ | -727 | $ | -749 | $ | 6,930 | ||||
Net investment in direct financing leases | 10,810 | 3 | -942 | 9,871 | ||||||||
Assets held for sale or lease, net | 656 | -337 | - | 319 | ||||||||
Initial direct costs, net of accumulated | 18 | - | -5 | 13 | ||||||||
amortization of $88 at June 30, | ||||||||||||
2014 and $83 at December 31, 2013 | ||||||||||||
Total | $ | 19,890 | $ | -1,061 | $ | -1,696 | $ | 17,133 | ||||
Property on Operating Leases | ' | |||||||||||
Property on operating leases consists of the following (in thousands): | ||||||||||||
Balance | Additions | Reclassifications or | Balance | |||||||||
December 31, | Dispositions | June 30, | ||||||||||
2013 | 2014 | |||||||||||
Transportation, rail | $ | 11,635 | $ | - | $ | 549 | $ | 12,184 | ||||
Marine vessels | 11,200 | - | - | 11,200 | ||||||||
Transportation, other | 4,639 | - | - | 4,639 | ||||||||
Manufacturing | 2,174 | - | -447 | 1,727 | ||||||||
Materials handling | 1,383 | - | -255 | 1,128 | ||||||||
Agriculture | 1,151 | - | - | 1,151 | ||||||||
Construction | 759 | - | -189 | 570 | ||||||||
Natural gas compressors | 1,671 | - | -1,671 | - | ||||||||
Other | 57 | - | -40 | 17 | ||||||||
34,669 | - | -2,053 | 32,616 | |||||||||
Less accumulated depreciation | -26,263 | -749 | 1,326 | -25,686 | ||||||||
Total | $ | 8,406 | $ | -749 | $ | -727 | $ | 6,930 | ||||
Components of Company's Investment in Direct Financing Leases | ' | |||||||||||
As of June 30, 2014 investment in direct financing leases consists of material handling and mining equipment. As of December 31, 2013, such investment primarily consisted of mining equipment. The following lists the components of the Company’s investment in direct financing leases as of June 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||
June 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Total minimum lease payments receivable | $ | 10,366 | $ | 12,584 | ||||||||
Estimated residual values of leased | 3,543 | 3,542 | ||||||||||
equipment (unguaranteed) | ||||||||||||
Investment in direct financing leases | 13,909 | 16,126 | ||||||||||
Less unearned income | -4,038 | -5,316 | ||||||||||
Net investment in direct financing leases | $ | 9,871 | $ | 10,810 | ||||||||
Future Minimum Lease Payments Receivable | ' | |||||||||||
At June 30, 2014, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands): | ||||||||||||
Operating | Direct | Total | ||||||||||
Leases | Financing | |||||||||||
Leases | ||||||||||||
Six months ending December 31, 2014 | $ | 1,743 | $ | 2,226 | $ | 3,969 | ||||||
Year ending December 31, 2015 | 2,103 | 4,453 | 6,556 | |||||||||
2016 | 391 | 3,686 | 4,077 | |||||||||
2017 | 345 | 1 | 346 | |||||||||
2018 | 182 | - | 182 | |||||||||
2019 | 182 | - | 182 | |||||||||
Thereafter | 46 | - | 46 | |||||||||
$ | 4,992 | $ | 10,366 | $ | 15,358 | |||||||
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 | |||||||||
Costs reimbursed to Managing Member and/or affiliates | $ | 141 | $ | 170 | $ | 281 | $ | 353 | ||||
Asset management fees to Managing Member and/or affiliates | 80 | 94 | 166 | 188 | ||||||||
$ | 221 | $ | 264 | $ | 447 | $ | 541 | |||||
NonRecourse_Debt_Tables
Non-Recourse Debt (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Non-Recourse Debt [Abstract] | ' | ||||||||
Future Minimum Payments of Non-Recourse Debt | ' | ||||||||
Future minimum payments of non-recourse debt are as follows (in thousands): | |||||||||
Principal | Interest | Total | |||||||
Six months ending December 31, 2014 | $ | 2,321 | $ | 326 | $ | 2,647 | |||
Year ending December 31, 2015 | 4,616 | 420 | 5,036 | ||||||
2016 | 3,743 | 133 | 3,876 | ||||||
2017 | 178 | 1 | 179 | ||||||
$ | 10,858 | $ | 880 | $ | 11,738 | ||||
Members_Capital_Tables
Members' Capital (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Members' Capital [Abstract] | ' | |||||||||||
Distributions to Other Members | ' | |||||||||||
Distributions to the Other Members were as follows (in thousands, except as to Units and per Unit data): | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Distributions declared | $ | 1,206 | $ | 1,808 | $ | 3,014 | $ | 3,616 | ||||
Weighted average number of Units outstanding | 12,055,016 | 12,055,016 | 12,055,016 | 12,055,016 | ||||||||
Weighted average distributions per Unit | $ | 0.10 | $ | 0.15 | $ | 0.25 | $ | 0.30 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||
Reconciliation of Level 3 Assets | ' | ||||||||||||||
The following table reconciles the beginning and ending balances of the Company’s Level 3 recurring assets (in thousands): | |||||||||||||||
Level 3 Assets | |||||||||||||||
Balance at December 31, 2013 | $ | 177 | |||||||||||||
Unrealized loss on warrants, net recorded during the period | -92 | ||||||||||||||
Balance at June 30, 2014 | $ | 85 | |||||||||||||
Fair Value Measurement of Assets Measured at Fair Value on a Non-Recurring Basis | ' | ||||||||||||||
The following table presents the fair value measurement of assets measured at fair value on a non-recurring basis and the level within the hierarchy in which the fair value measurements fall at December 31, 2013 (in thousands): | |||||||||||||||
31-Dec-13 | Level 1 Estimated Fair Value | Level 2 Estimated Fair Value | Level 3 Estimated Fair Value | ||||||||||||
Assets measured at fair value on a non-recurring basis: | |||||||||||||||
Impaired off-lease equipment | $ | 3 | $ | - | $ | - | $ | 3 | |||||||
Summary of Valuation Techniques and Significant Unobservable Inputs Used | ' | ||||||||||||||
The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value adjustments categorized as Level 3 in the fair value hierarchy at June 30, 2014 and December 31, 2013: | |||||||||||||||
30-Jun-14 | |||||||||||||||
Name | Valuation Frequency | Valuation Technique | Unobservable Inputs | Range of Input Values | |||||||||||
Warrants | Recurring | Black-Scholes Model | Stock price | $1.12 - $50.94 | |||||||||||
Exercise price | $0.16 - $50.94 | ||||||||||||||
Time to maturity (in years) | 0.33 - 5.66 | ||||||||||||||
Risk-free interest rate | 0.04% - 1.79% | ||||||||||||||
Annualized volatility | 16.51% - 100.00% | ||||||||||||||
31-Dec-13 | |||||||||||||||
Name | Valuation Frequency | Valuation Technique | Unobservable Inputs | Range of Input Values | |||||||||||
Warrants | Recurring | Black-Scholes Model | Stock price | $1.12 - $50.94 | |||||||||||
Exercise price | $0.16 - $50.94 | ||||||||||||||
Time to maturity (in years) | 0.62 - 7.00 | ||||||||||||||
Risk-free interest rate | 0.11% - 2.28% | ||||||||||||||
Annualized volatility | 17.80% - 100.00% | ||||||||||||||
Off-lease Equipment | Non-recurring | Market Approach | Third Party Agents' Pricing | $500 | |||||||||||
Quotes - per equipment | (total of $2,500) | ||||||||||||||
Equipment Condition | Poor to Average | ||||||||||||||
Estimated Fair Values of Financial Instruments | ' | ||||||||||||||
The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at June 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||
Fair Value Measurements at June 30, 2014 | |||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 5,134 | $ | 5,134 | $ | - | $ | - | $ | 5,134 | |||||
Notes receivable, net | 427 | - | - | 427 | 427 | ||||||||||
Investment in securities | 5 | - | - | 5 | 5 | ||||||||||
Warrants | 85 | - | - | 85 | 85 | ||||||||||
Financial liabilities: | |||||||||||||||
Non-recourse debt | 10,858 | - | - | 11,194 | 11,194 | ||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 4,738 | $ | 4,738 | $ | - | $ | - | $ | 4,738 | |||||
Notes receivable, net | 526 | - | - | 526 | 526 | ||||||||||
Investment in securities | 5 | - | - | 5 | 5 | ||||||||||
Warrants | 177 | - | - | 177 | 177 | ||||||||||
Financial liabilities: | |||||||||||||||
Non-recourse debt | 13,105 | - | - | 13,575 | 13,575 | ||||||||||
Organization_and_Limited_Liabi1
Organization and Limited Liability Company Matters (Narrative) (Details) (USD $) | 0 Months Ended | 137 Months Ended | 165 Months Ended | ||||||||
Jan. 16, 2001 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jan. 15, 2003 | Apr. 03, 2001 | Dec. 31, 2000 | Apr. 03, 2001 | Feb. 21, 2001 | Dec. 31, 2000 | Dec. 31, 2000 | |
Minimum [Member] | Minimum [Member] | Atel Financial Services LLC [Member] | Member's Equity Contributions [Member] | ||||||||
Atel Financial Services LLC [Member] | |||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Limited Liability Company, business cessation date | ' | ' | 31-Dec-20 | ' | ' | ' | ' | ' | ' | ' | ' |
Contributions of capital | ' | ' | ' | ' | ' | $7,500,000 | $600 | ' | ' | ' | $500 |
Capital investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' |
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 | ' | ' | ' | ' | 12,065,266 | 753,050 | ' | ' | 120,000 | ' | ' |
Proceeds from sale of Limited Liability Company Units | ' | ' | ' | ' | 120,700,000 | ' | ' | ' | 1,200,000 | ' | ' |
Repurchase of units, number of units | ' | 10,250 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of aggregate subscriptions for Pennsylvania subscriptions to be released to the Fund | ' | ' | ' | ' | ' | ' | ' | $7,500,000 | ' | ' | ' |
Units issued | ' | 12,055,016 | 12,055,016 | 12,055,016 | ' | ' | ' | ' | ' | ' | ' |
Units outstanding | ' | 12,055,016 | 12,055,016 | 12,055,016 | ' | ' | ' | ' | ' | ' | ' |
Reinvestment period | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
segment | ||||
Summary of Significant Accounting Policies [Abstract] | ' | ' | ' | ' |
Number of operating segments | ' | ' | 1 | ' |
Fair value of warrants | $85 | ' | $85 | $177 |
Unrealized loss on fair valuation of warrants | -75 | ' | -92 | ' |
Gain (loss) on exercise of warrants | $44 | $0 | $44 | ' |
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 | $1,963 | $2,925 | $5,017 | $5,497 | ' |
Percentage of total revenue | ' | ' | 100.00% | 100.00% | ' |
Long-lived assets | 17,133 | ' | 17,133 | ' | 19,890 |
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 | ' | ' | 4,964 | 5,287 | ' |
Percentage of total revenue | ' | ' | 99.00% | 96.00% | ' |
Long-lived assets | 17,046 | ' | 17,046 | ' | 19,803 |
Percentage of long lived assets | 99.00% | ' | 99.00% | ' | 100.00% |
United Kingdom [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | ' | ' | 53 | 83 | ' |
Percentage of total revenue | ' | ' | 1.00% | 2.00% | ' |
Long-lived assets | 87 | ' | 87 | ' | 87 |
Percentage of long lived assets | 1.00% | ' | 1.00% | ' | 0.00% |
Canada [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | 127 | ' |
Percentage of total revenue | ' | ' | 0.00% | 2.00% | ' |
Total International [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | ' | ' | 53 | 210 | ' |
Percentage of total revenue | ' | ' | 1.00% | 4.00% | ' |
Long-lived assets | $87 | ' | $87 | ' | $87 |
Percentage of long lived assets | 1.00% | ' | 1.00% | ' | 0.00% |
Notes_Receivable_Net_Narrative
Notes Receivable, Net (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2012 |
Notes Receivable, Net [Abstract] | ' | ' | ' | ' |
Notes receivable, net | ' | $427 | $526 | ' |
Notes receivable, interest rate | ' | 8.50% | ' | ' |
Notes maturity period | ' | '2016 | ' | ' |
Notes receivable deemed impaired or in non-accrual status | ' | 0 | 0 | ' |
Fair value adjustments which reduced the cost basis of impaired loans | ' | ' | ' | 54 |
Gain on early settlement of notes receivable | $54 | ' | ' | ' |
Notes_Receivable_Net_Minimum_F
Notes Receivable, Net (Minimum Future Payments Receivable) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Notes Receivable, Net [Abstract] | ' | ' |
Six months ending December 31, 2014 | $110 | ' |
Year ending December 31, 2015 | 166 | ' |
2016 | 188 | ' |
Notes receivable, gross | 464 | ' |
Less: portion representing unearned interest income | -37 | -57 |
Notes receivable, net | $427 | $526 |
Allowance_for_Credit_Losses_Na
Allowance for Credit Losses (Narrative) (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 |
Minimum [Member] | Maximum [Member] | ||
Notes receivable, period for non-accrual status | ' | '90 days | ' |
Accounts receivable, period for non-accrual status | ' | '90 days | ' |
Accounts receivable, period of review for impairment | ' | ' | '90 days |
Notes receivable, allowance for credit losses | ' | ' | ' |
Allowance_for_Credit_Losses_Ac
Allowance for Credit Losses (Activity in Allowance for Doubtful Accounts) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | $3 | $109 | $109 |
Reversal of provision | -2 | -26 | -2 | -26 | -52 |
Asset disposal | ' | ' | ' | ' | -54 |
Ending Balance | 1 | ' | 1 | ' | 3 |
Allowance For Doubtful Accounts [Member] | Operating Leases [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | 3 | 48 | 48 |
Reversal of provision | ' | ' | -2 | ' | -45 |
Ending Balance | 1 | ' | 1 | ' | 3 |
Allowance For Doubtful Accounts [Member] | Finance Leases [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 7 | 7 |
Reversal of provision | ' | ' | ' | ' | -7 |
Valuation Adjustments on Financing Receivables [Member] | Notes Receivable [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 54 | 54 |
Asset disposal | ' | ' | ' | ' | -54 |
Valuation Adjustments on Financing Receivables [Member] | Finance Leases [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | ' | ' |
Reversal of provision | ' | ' | ' | ' | ' |
Asset disposal | ' | ' | ' | ' | ' |
Ending Balance | ' | ' | ' | ' | ' |
Allowance_for_Credit_Losses_Re
Allowance for Credit Losses (Recorded Investment in Financing Receivables) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Allowances for credit losses: | ' | ' | ||
Ending balance | ' | ' | ||
Ending balance: individually evaluated for impairment | ' | ' | ||
Ending balance: collectively evaluated for impairment | ' | ' | ||
Ending balance: loans acquired with deteriorated credit quality | ' | ' | ||
Notes Receivable, Net [Abstract] | ' | ' | ||
Ending balance | 10,306 | 11,349 | ||
Ending balance: individually evaluated for impairment | 10,306 | 11,349 | ||
Ending balance: collectively evaluated for impairment | ' | ' | ||
Ending balance: loans acquired with deteriorated credit quality | ' | ' | ||
Notes Receivable [Member] | ' | ' | ||
Allowances for credit losses: | ' | ' | ||
Ending balance | ' | ' | ||
Ending balance: individually evaluated for impairment | ' | ' | ||
Ending balance: collectively evaluated for impairment | ' | ' | ||
Ending balance: loans acquired with deteriorated credit quality | ' | ' | ||
Notes Receivable, Net [Abstract] | ' | ' | ||
Ending balance | 427 | 526 | ||
Ending balance: individually evaluated for impairment | 427 | 526 | ||
Ending balance: collectively evaluated for impairment | ' | ' | ||
Ending balance: loans acquired with deteriorated credit quality | ' | ' | ||
Finance Leases [Member] | ' | ' | ||
Allowances for credit losses: | ' | ' | ||
Ending balance | ' | ' | ||
Ending balance: individually evaluated for impairment | ' | ' | ||
Ending balance: collectively evaluated for impairment | ' | ' | ||
Ending balance: loans acquired with deteriorated credit quality | ' | ' | ||
Notes Receivable, Net [Abstract] | ' | ' | ||
Ending balance | 9,879 | [1] | 10,823 | [2] |
Ending balance: individually evaluated for impairment | 9,879 | 10,823 | ||
Ending balance: collectively evaluated for impairment | ' | ' | ||
Ending balance: loans acquired with deteriorated credit quality | ' | ' | ||
Notes Receivable unamortized initial direct costs | $8 | $13 | ||
[1] | Includes $8 of unamortized initial direct costs | |||
[2] | Includes $13 of unamortized initial direct costs |
Allowance_for_Credit_Losses_Fi
Allowance for Credit Losses (Financing Receivables by Credit Quality Indicator and by Class) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Finance Leases | $9,871 | $10,810 |
Notes Receivable | 427 | 526 |
Pass [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Finance Leases | 9,871 | 10,810 |
Notes Receivable | 427 | 526 |
Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Finance Leases | ' | ' |
Notes Receivable | ' | ' |
Substandard [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Finance Leases | ' | ' |
Notes Receivable | ' | ' |
Doubtful [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Finance Leases | ' | ' |
Notes Receivable | ' | ' |
Allowance_for_Credit_Losses_Ne
Allowance for Credit Losses (Net Investment in Financing Receivables by Age) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ' | ' |
31-60 Days Past Due | ' | ' |
61-90 Days Past Due | ' | ' |
Greater Than 90 Days | ' | ' |
Total Past Due | ' | ' |
Current | 10,298 | 11,336 |
Total Financing Receivable | 10,298 | 11,336 |
Recorded Investment > 90 Days and Accruing | ' | ' |
Notes Receivable [Member] | ' | ' |
Financing Receivable Recorded Investment Past Due [Line Items] | ' | ' |
31-60 Days Past Due | ' | ' |
61-90 Days Past Due | ' | ' |
Greater Than 90 Days | ' | ' |
Total Past Due | ' | ' |
Current | 427 | 526 |
Total Financing Receivable | 427 | 526 |
Recorded Investment > 90 Days and Accruing | ' | ' |
Finance Leases [Member] | ' | ' |
Financing Receivable Recorded Investment Past Due [Line Items] | ' | ' |
31-60 Days Past Due | ' | ' |
61-90 Days Past Due | ' | ' |
Greater Than 90 Days | ' | ' |
Total Past Due | ' | ' |
Current | 9,871 | 10,810 |
Total Financing Receivable | 9,871 | 10,810 |
Recorded Investment > 90 Days and Accruing | ' | ' |
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 |
IDC amortization expense related to operating leases and direct financing leases | $3 | $4 | $6 | $9 | ' |
Depreciation of operating lease assets | 369 | 598 | 749 | 1,285 | ' |
Average estimated residual value of assets on operating leases | 15.00% | ' | 15.00% | ' | 17.00% |
Revenues from contingent rentals | 55 | 29 | 97 | 42 | ' |
Impairment losses on equipment | ' | $156 | ' | $156 | ' |
Minimum [Member] | ' | ' | ' | ' | ' |
Accounts receivable, period for non-accrual status | ' | ' | '90 days | ' | ' |
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 | Dec. 31, 2013 |
Leases Disclosure [Line Items] | ' | ' |
Balance December 31, 2013 | $19,890 | ' |
Reclassifications, Additions/Dispositions and Impairment Losses | -1,061 | ' |
Depreciation/ Amortization Expense or Amortization of Leases | -1,696 | ' |
Balance June 30, 2014 | 17,133 | ' |
Initial direct costs, accumulated amortization | 88 | 83 |
Operating Leases [Member] | ' | ' |
Leases Disclosure [Line Items] | ' | ' |
Balance December 31, 2013 | 8,406 | ' |
Reclassifications, Additions/Dispositions and Impairment Losses | -727 | ' |
Depreciation/ Amortization Expense or Amortization of Leases | -749 | ' |
Balance June 30, 2014 | 6,930 | ' |
Direct Financing Leases [Member] | ' | ' |
Leases Disclosure [Line Items] | ' | ' |
Balance December 31, 2013 | 10,810 | ' |
Reclassifications, Additions/Dispositions and Impairment Losses | 3 | ' |
Depreciation/ Amortization Expense or Amortization of Leases | -942 | ' |
Balance June 30, 2014 | 9,871 | ' |
Assets Held-for-sale or Lease[Member] | ' | ' |
Leases Disclosure [Line Items] | ' | ' |
Balance December 31, 2013 | 656 | ' |
Reclassifications, Additions/Dispositions and Impairment Losses | -337 | ' |
Balance June 30, 2014 | 319 | ' |
Initial Direct Cost [Member] | ' | ' |
Leases Disclosure [Line Items] | ' | ' |
Balance December 31, 2013 | 18 | ' |
Depreciation/ Amortization Expense or Amortization of Leases | -5 | ' |
Balance June 30, 2014 | $13 | ' |
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 | $8,406 |
Additions | -749 |
Reclassifications or Dispositions | -727 |
Balance June 30, 2014 | 6,930 |
Transportation, Rail [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2013 | 11,635 |
Additions | ' |
Reclassifications or Dispositions | 549 |
Balance June 30, 2014 | 12,184 |
Marine Vessels [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2013 | 11,200 |
Additions | ' |
Reclassifications or Dispositions | ' |
Balance June 30, 2014 | 11,200 |
Marine Transportation/Transportation, Other [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2013 | 4,639 |
Additions | ' |
Reclassifications or Dispositions | ' |
Balance June 30, 2014 | 4,639 |
Manufacturing [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2013 | 2,174 |
Additions | ' |
Reclassifications or Dispositions | -447 |
Balance June 30, 2014 | 1,727 |
Materials Handling [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2013 | 1,383 |
Additions | ' |
Reclassifications or Dispositions | -255 |
Balance June 30, 2014 | 1,128 |
Agriculture [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2013 | 1,151 |
Additions | ' |
Reclassifications or Dispositions | ' |
Balance June 30, 2014 | 1,151 |
Construction [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2013 | 759 |
Additions | ' |
Reclassifications or Dispositions | -189 |
Balance June 30, 2014 | 570 |
Natural Gas Compressors [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2013 | 1,671 |
Additions | ' |
Reclassifications or Dispositions | -1,671 |
Other Properties [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2013 | 57 |
Additions | ' |
Reclassifications or Dispositions | -40 |
Balance June 30, 2014 | 17 |
Total Property Subject To Or Available For Operating Lease [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2013 | 34,669 |
Additions | ' |
Reclassifications or Dispositions | -2,053 |
Balance June 30, 2014 | 32,616 |
Less Accumulated Depreciation [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2013 | -26,263 |
Additions | -749 |
Reclassifications or Dispositions | 1,326 |
Balance June 30, 2014 | ($25,686) |
Investment_in_Equipment_and_Le5
Investment in Equipment and Leases, Net (Components of Investment in Direct Financing Leases) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment in Equipment and Leases, Net [Abstract] | ' | ' |
Total minimum lease payments receivable | $10,366 | $12,584 |
Estimated residual values of leased equipment (unguaranteed) | 3,543 | 3,542 |
Investment in direct financing leases | 13,909 | 16,126 |
Less unearned income | -4,038 | -5,316 |
Net investment in direct financing leases | $9,871 | $10,810 |
Investment_in_Equipment_and_Le6
Investment in Equipment and Leases, Net (Future Minimum Lease Payments Receivable) (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases | ' |
Six months ending December 31, 2014 | $1,743 |
Year ending December 31, 2015 | 2,103 |
2016 | 391 |
2017 | 345 |
2018 | 182 |
2019 | 182 |
Thereafter | 46 |
Operating leases, future minimum payments receivable | 4,992 |
Direct Financing Leases | ' |
Six months ending December 31, 2014 | 2,226 |
Year ending December 31, 2015 | 4,453 |
2016 | 3,686 |
2017 | 1 |
2018 | ' |
2019 | ' |
Thereafter | ' |
Capital leases, future minimum payments receivable | 10,366 |
Total | ' |
Six months ending December 31, 2014 | 3,969 |
Year ending December 31, 2015 | 6,556 |
2016 | 4,077 |
2017 | 346 |
2018 | 182 |
2019 | 182 |
Thereafter | 46 |
Operating and capital leases, future minimum payments receivable | $15,358 |
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] | ' | ' | ' | ' |
Costs reimbursed to Managing Member and/or affiliates | $141 | $170 | $281 | $353 |
Asset management fees to Managing Member and/or affiliates | 80 | 94 | 166 | 188 |
Total expenses from transactions with related party | $221 | $264 | $447 | $541 |
NonRecourse_Debt_Narrative_Det
Non-Recourse Debt (Narrative) (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Gross operating lease rentals and future payments on direct financing leases | 11.4 |
Carrying value of pledged assets | 11.8 |
Minimum [Member] | ' |
Fixed Interest rate on note | 6.16% |
Note maturity year | '2015 |
Maximum [Member] | ' |
Fixed Interest rate on note | 6.66% |
Note maturity year | '2017 |
NonRecourse_Debt_Future_Minimu
Non-Recourse Debt (Future Minimum Payments of Non-Recourse Debt) (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Principal | ' |
Six months ending December 31, 2014 | $2,321 |
Year ending December 31, 2015 | 4,616 |
2016 | 3,743 |
2017 | 178 |
Long-term debt, total | 10,858 |
Interest | ' |
Six months ending December 31, 2014 | 326 |
Year ending December 31, 2015 | 420 |
2016 | 133 |
2017 | 1 |
Long-term debt interest, total | 880 |
Total | ' |
Six months ending December 31, 2014 | 2,647 |
Year ending December 31, 2015 | 5,036 |
2016 | 3,876 |
2017 | 179 |
Long-term debt principal and interest, total | $11,738 |
Commitments_and_Contingencies_
Commitments and 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, percentage of gross proceeds | 10.00% |
Gain contingency | $2,800 |
ATEL Capital Equipment Fund IX, LLC [Member] | ' |
Gain Contingencies [Line Items] | ' |
Gain contingency | $350 |
Members_Capital_Narrative_Deta
Members' Capital (Narrative) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Other Members Capital Account [Line Items] | ' | ' |
Other Members capital account, units issued | 12,055,016 | 12,055,016 |
Other Members capital account, units outstanding | 12,055,016 | 12,055,016 |
Other Members capital account, units authorized | 15,000,000 | 15,000,000 |
Potential repurchase price of Units as percentage of holder's capital account | 100.00% | ' |
Other Members [Member] | ' | ' |
Other Members Capital Account [Line Items] | ' | ' |
Allocation of net income or net losses | 92.50% | ' |
Managing Member [Member] | ' | ' |
Other Members Capital Account [Line Items] | ' | ' |
Managing members account, units issued | 50 | 50 |
Allocation of net income or net losses | 7.50% | ' |
Members_Capital_Distributions_
Members' Capital (Distributions to Other Members) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Members' Capital [Abstract] | ' | ' | ' | ' | ' |
Distributions declared | $1,206 | $1,808 | $3,014 | $3,616 | $7,233 |
Weighted average number of Units outstanding | 12,055,016 | 12,055,016 | 12,055,016 | 12,055,016 | ' |
Weighted average distributions per Unit | $0.10 | $0.15 | $0.25 | $0.30 | $0.60 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
Fair Value Measurements [Abstract] | ' | ' | ' | ' |
Fair value adjustment on notes receivable | $156 | ' | ' | ' |
Impairment losses on equipment | 156 | 156 | ' | ' |
Fair value of warrants | ' | ' | $85 | $177 |
Fair_Value_Measurements_Reconc
Fair Value Measurements (Reconciliation of Level 3 Assets) (Details) (USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Unrealized loss on warrants, net recorded during the period | ($75) | ($92) |
Level 3 Estimated Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Balance at December 31, 2013 | ' | 177 |
Unrealized loss on warrants, net recorded during the period | ' | -92 |
Balance at June 30, 2014 | $85 | $85 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value Measurement of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Impaired off-lease equipment | $3 |
Level 1 Estimated Fair Value [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Impaired off-lease equipment | ' |
Level 2 Estimated Fair Value [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Impaired off-lease equipment | ' |
Level 3 Estimated Fair Value [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Impaired off-lease equipment | $3 |
Fair_Value_Measurements_Summar
Fair Value Measurements (Summary of Valuation Techniques and Significant Unobservable Inputs Used) (Details) (USD $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Fair Value, Measurements, Nonrecurring [Member] | Off-Lease Equipment [Member] | Market Approach Valuation Technique [Member] | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Fair value inputs, third party agents' pricing quotes per equipment | ' | $500 |
Fair value inputs, third party agents' pricing quotes, total | ' | $2,500 |
Minimum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Model [Member] | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Stock price | $1.12 | $1.12 |
Exercise price | $0.16 | $0.16 |
Time to maturity (in years) | '3 months 29 days | '7 months 13 days |
Risk-free interest rate | 0.04% | 0.11% |
Annualized volatility | 16.51% | 17.80% |
Maximum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Model [Member] | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Stock price | $50.94 | $50.94 |
Exercise price | $50.94 | $50.94 |
Time to maturity (in years) | '5 years 7 months 28 days | '7 years |
Risk-free interest rate | 1.79% | 2.28% |
Annualized volatility | 100.00% | 100.00% |
Fair_Value_Measurements_Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial assets: | ' | ' |
Cash and cash equivalents | $5,134 | $4,738 |
Notes receivable, net | 427 | 526 |
Investment in securities | 5 | 5 |
Warrants | 85 | 177 |
Financial liabilities: | ' | ' |
Non-recourse debt | 11,194 | 13,575 |
Carrying Amount | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 5,134 | 4,738 |
Notes receivable, net | 427 | 526 |
Investment in securities | 5 | 5 |
Warrants | 85 | 177 |
Financial liabilities: | ' | ' |
Non-recourse debt | 10,858 | 13,105 |
Estimated Fair Value | Level 1 Estimated Fair Value [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 5,134 | 4,738 |
Notes receivable, net | ' | ' |
Investment in securities | ' | ' |
Warrants | ' | ' |
Financial liabilities: | ' | ' |
Non-recourse debt | ' | ' |
Estimated Fair Value | Level 2 Estimated Fair Value [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | ' | ' |
Notes receivable, net | ' | ' |
Investment in securities | ' | ' |
Warrants | ' | ' |
Financial liabilities: | ' | ' |
Non-recourse debt | ' | ' |
Estimated Fair Value | Level 3 Estimated Fair Value [Member] | ' | ' |
Financial assets: | ' | ' |
Notes receivable, net | 427 | 526 |
Investment in securities | 5 | 5 |
Warrants | 85 | 177 |
Financial liabilities: | ' | ' |
Non-recourse debt | $11,194 | $13,575 |