Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | ATEL CAPITAL EQUIPMENT FUND IX LLC | ||
Entity Central Index Key | 1,125,264 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Trading Symbol | zzhjc | ||
Entity Public Float | $ 0 | ||
Entity Units Outstanding | 12,055,016 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 2,240 | $ 4,633 |
Accounts receivable, net of allowance for doubtful accounts of $1 at December 31, 2015 and $7 at December 31, 2014 | 533 | 564 |
Notes receivable, net of unearned interest income of $0 at December 31, 2015 and $22 at December 31, 2014 | 332 | |
Prepaid expenses and other assets | 66 | 56 |
Investment in securities | 5 | 5 |
Fair value of warrants | 125 | |
Investments in equipment and leases, net of accumulated depreciation of $23,772 at December 31, 2015 and $25,440 at December 31, 2014 | 11,127 | 15,256 |
Total assets | 13,971 | 20,971 |
Accounts payable and accrued liabilities: | ||
Managing Member | 4 | 175 |
Other | 211 | 207 |
Non-recourse debt | 3,921 | 8,537 |
Unearned operating lease income | 105 | 200 |
Total liabilities | $ 4,241 | $ 9,119 |
Commitments and contingencies | ||
Members' capital: | ||
Managing Member | ||
Other Members | $ 9,730 | $ 11,852 |
Total Members' capital | 9,730 | 11,852 |
Total liabilities and Members' capital | $ 13,971 | $ 20,971 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1 | $ 7 |
Notes receivable, unearned interest income | 0 | 22 |
Investments in equipment and leases, accumulated depreciation | $ 23,772 | $ 25,440 |
Statements of Income
Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Leasing and lending activities: | ||
Operating leases | $ 3,830 | $ 5,013 |
Direct financing leases | 1,867 | 2,442 |
Interest on notes receivable | 22 | 35 |
Gain on sales of lease assets and early termination of notes receivable | 184 | 1,622 |
Unrealized loss on fair valuation of warrants | (125) | (52) |
Gain on sales or dispositions of investment in securities | 94 | 44 |
Other revenue | 105 | 84 |
Total revenues | 5,977 | 9,188 |
Expenses: | ||
Depreciation of operating lease assets | 899 | 1,469 |
Asset management fees to Managing Member and/or affiliates | 296 | 471 |
Cost reimbursements to Managing Member and/or affiliates | 517 | 557 |
(Reversal of) provision for credit losses | (6) | 4 |
Impairment losses | 132 | 37 |
Amortization of initial direct costs | 6 | 10 |
Other management fees | 26 | 28 |
Interest expense | 395 | 701 |
Professional fees | 123 | 114 |
Outside services | 59 | 56 |
Insurance | 50 | 52 |
Marine vessel maintenance and other operating costs | 17 | |
Railcar and equipment maintenance | 128 | 147 |
Franchise fees and state taxes | 68 | 31 |
Other | 172 | 140 |
Total operating expenses | 2,882 | 3,817 |
Other expense, net | (4) | (1) |
Net income | 3,091 | 5,370 |
Net income: | ||
Managing Member | 391 | 440 |
Other Members | 2,700 | 4,930 |
Net income | $ 3,091 | $ 5,370 |
Net income per Limited Liability Company Unit (Other Members) | $ 0.22 | $ 0.41 |
Weighted average number of Units outstanding | 12,055,016 | 12,055,016 |
Statements of Changes in Member
Statements of Changes in Members' Capital - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Beginning Balance (in units) | 12,055,016 | |
Beginning Balance | $ 11,852 | $ 12,347 |
Distributions to Other Members | (4,822) | (5,425) |
Distributions to Managing Member | (391) | (440) |
Net income | $ 3,091 | $ 5,370 |
Ending Balance (in units) | 12,055,016 | 12,055,016 |
Ending Balance | $ 9,730 | $ 11,852 |
Other Members [Member] | ||
Beginning Balance (in units) | 12,055,016 | 12,055,016 |
Beginning Balance | $ 11,852 | $ 12,347 |
Distributions to Other Members | (4,822) | (5,425) |
Net income | $ 2,700 | $ 4,930 |
Ending Balance (in units) | 12,055,016 | 12,055,016 |
Ending Balance | $ 9,730 | $ 11,852 |
Managing Member [Member] | ||
Distributions to Managing Member | (391) | (440) |
Net income | $ 391 | $ 440 |
Statements of Changes in Membe6
Statements of Changes in Members' Capital (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statements of Changes in Members' Capitall [Abstract] | ||
Distributions to Other Members, per unit | $ 0.40 | $ 0.45 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities: | ||
Net income | $ 3,091 | $ 5,370 |
Adjustment to reconcile net income to cash provided by operating activities: | ||
Gain on sales of lease assets and early termination of notes receivable | (184) | (1,622) |
Gain on sales or dispositions of investment in securities | (94) | (44) |
Unrealized loss on fair valuation of warrants | 125 | 52 |
Depreciation of operating lease assets | 899 | 1,469 |
Amortization of initial direct costs | 6 | 10 |
(Reversal of) provision for credit losses | (6) | 4 |
Impairment losses | 132 | 37 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 37 | 17 |
Prepaid expenses and other assets | (10) | 2 |
Accounts payable, Managing Member | (171) | 140 |
Accounts payable, other | 4 | (99) |
Unearned operating lease income | (95) | 14 |
Net cash provided by operating activities | 3,734 | 5,350 |
Investing activities: | ||
Proceeds from sales of lease assets and early termination of notes receivable | 690 | 2,729 |
Proceeds from sales or dispositions of investment in securities | 94 | 44 |
Principal payments received on direct financing leases | 2,586 | 2,011 |
Principal payments received on notes receivable | 332 | 194 |
Net cash provided by investing activities | 3,702 | 4,978 |
Financing activities: | ||
Repayments of non-recourse debt | (4,616) | (4,568) |
Net cash used in financing activities | (9,829) | (10,433) |
Net decrease in cash and cash equivalents | (2,393) | (105) |
Cash and cash equivalents at beginning of year | 4,633 | 4,738 |
Cash and cash equivalents at end of year | 2,240 | 4,633 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 420 | 726 |
Cash paid during the period for taxes | 70 | 62 |
Other Members [Member] | ||
Operating activities: | ||
Net income | 2,700 | 4,930 |
Financing activities: | ||
Distributions to Members | (4,822) | (5,425) |
Managing Member [Member] | ||
Operating activities: | ||
Net income | 391 | 440 |
Financing activities: | ||
Distributions to Members | $ (391) | $ (440) |
Organization and Limited Liabil
Organization and Limited Liability Company Matters | 12 Months Ended |
Dec. 31, 2015 | |
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 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 I nitial 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 December 31, 2015 , 12,055,016 Units remain issued and outstanding . The Co mpany’s principal objectives have been to invest in a diversified portfolio of equipment that (i) preserves, protects and returns the Company’s invested capital; (ii) generates regular distributions to the members of cash from operations and cash from sales or refinancing, with any balance remaining after certain minimum distributions to be used to purchase additional equipment during the reinvestment period (“Reinvestment Period”) (defined as six full years following the year the offering was terminated), which ended 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 7 ). 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of significant accounting policies: Basis of presentation: The accompanying balance sheets as of December 31, 2015 and 2014, and the related statements of income, changes in members’ capital, and cash flows for the years then ended, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission. Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no significant effect on the reported financial position or results of operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after December 31, 2015, up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements. Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates relate primarily to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and determination of the allowance for doubtful accounts. Cash and cash equivalents: Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less. Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating and direct financing lease receivables, notes receivable and accounts receivable. The Company generally places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Funds’ cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts and notes receivable represent amounts due from lessees or borrowers in various industries, related to equipment on operating and direct financing leases or notes receivable. Accounts receivable: Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and notes receivable which are due to the Company. Allowances for doubtful accounts are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and invoiced amounts. Accounts receivable deemed uncollectible are charged off to the allowance on a specific identification basis. Amounts recovered that were previously written-off are recorded as other income in the period received. Equipment on operating leases and related revenue recognition: Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with ASC 840-20-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360-10-35-43). The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized. Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances. The Company earns revenues from its marine vessel based on charter utilization of the vessel or a fixed term lease. When the vessel is chartered, contingent rentals and the associated expenses are recorded when earned and/or incurred. From time to time, the Company incurs “drydocking” costs on its vessel. Drydocking costs include labor and material costs related to refurbishing, overhauling and/or replacing engine and other major mechanical components of the vessel, hull maintenance and other repairs that bring the vessel into seaworthy compliance with U.S. marine codes in order to have it certified as available for charter. Such drydocking costs are capitalized and added to the equipment cost and depreciated over the period between scheduled drydockings, which generally occur every 24 to 30 months. Direct financing leases and related revenue recognition: Income from direct financing lease transactions is reported using the financing method of accounting, in which the Company’s investment in the leased property is reported as a receivable from the lessee to be recovered through future rentals. The interest income portion of each rental payment is calculated so as to generate a constant rate of return on the net receivable outstanding. Allowances for losses on direct financing leases are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and billed and unbilled receivables. Direct financing leases are charged off to the allowance as they are deemed uncollectible. Direct financing leases are generally placed in a non-accrual status (i.e., no revenue is recognized) and deemed impaired when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of all direct finance lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related direct financing leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, all payments received are applied only against outstanding principal balances. Notes receivable, unearned interest income and related revenue recognition: The Company records all future payments of principal and interest on notes as notes receivable which is then offset by the amount of any related unearned interest income. For financial statement purposes, the Company reports only the net amount of principal due on the balance sheet. The unearned interest is recognized over the term of the note and the income portion of each note payment is calculated so as to generate a constant rate of return on the net balance outstanding. Any fees or costs related to notes receivable are recorded as part of the net investment in notes receivable and amortized over the term of the loan. Allowances for losses on notes receivable are typically established based on historical charge off and collection experience and the collectability of specifically identified borrowers and billed and unbilled receivables. 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 payments 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 for losses as they are deemed uncollectible. Notes 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 note payments outstanding less than 90 days. Based upon management’s judgment, notes may be placed in a non-accrual status. 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, all payments received are applied only against outstanding principal balances. Initial direct costs: The Company capitalizes initial direct costs (“IDC”) associated with the origination and funding of lease assets and investments in notes receivable . IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease and loan originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease (or note by note) basis based on actual contract term using a straight-line method for operating leases and the effective interest rate method for direct financing leases and notes receivable. Upon disposal of the underlying lease or loan assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases or notes receivable that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense. Acquisition expense: Acquisition expense represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses and miscellaneous expenses related to the selection and acquisition of equipment which are reimbursable to the Managing Member under the terms of the Operating Agreement. As the costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred. Asset valuation: Recorded values of the Company’s leased asset portfolio are periodically reviewed for impairment. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the market place are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Segment reporting: The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States. The Company’s principal decision makers are the Managing Member’s Chief Executive Officer and its Chief Financial Officer and Chief Operating Officer. The Company believes that its equipment leasing business operates as one reportable segment because: a) the Company measures profit and loss at the equipment portfolio level as a whole; b) the principal decision makers do not review information based on any operating segment other than the equipment leasing transaction portfolio; c) the Company does not maintain discrete financial information on any specific segment other than its equipment financing operations; d) the Company has not chosen to organize its business around different products and services other than equipment lease financing; and e) the Company has not chosen to organize its business around geographic areas. The primary geographic regions in which the Company seeks leasing and lending 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 years ended December 31, 2015 and 2014 and long-lived assets as of December 31, 2015 and 2014 (dollars in thousands): For The Year Ended December 31, 2015 % of Total 2014 % of Total Revenue United States $ 5,936 99% $ 9,108 99% United Kingdom 41 1% 80 1% Total International 41 1% 80 1% Total $ 5,977 100% $ 9,188 100% As of December 31, 2015 % of Total 2014 % of Total Long-lived assets United States $ 11,093 100% $ 15,222 100% United Kingdom 34 0% 34 0% Total International 34 0% 34 0% Total $ 11,127 100% $ 15,256 100% Foreign currency transactions: Foreign currency transaction gains and losses are reported in the results of operations as “other income” or “other expense” in the period in which they occur. Currently, the Company does not use derivative instruments to hedge its economic exposure with respect to assets, liabilities and firm commitments as the foreign currency transactions risks to date have not been significant. During 2015 and 2014, the Company’s net foreign currency gains (losses) were nominal. 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 December 31, 2015 and 2014 nor investment securities sold or disposed of during the years ended December 31, 2015 and 2014. Warrants Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet as determined by the Managing Member. During 2015 and 2014 , the Company recorded unrealized losses of $125 thousand and $52 thousand, respectively, on the fair valuation of its warrant holdings. As of December 31, 2015, the Company’s remaining warrants had no value. Such warrants expired in January 2016. By comparison, as of December 31, 2014, the estimated fair value of the Company’s portfolio of warrants amounted to $125 thousand. During 2015 and 2014, the Company realized an approximate $94 thousand and $44 thousand of gains on the net exercise of warrants. Unearned operating lease income: The Company records prepayments on operating leases as a liability under the caption of unearned operating lease income. The liability is recorded when prepayments are received and recognized as operating lease revenue over the period to which the prepayments relate using a straight-line method. Income taxes: The Company is treated as a partnership for federal income tax purposes. Pursuant to the provisions of Section 701 of the Internal Revenue Code, a partnership is not subject to federal income taxes. Accordingly, the Company has provided current income taxes for only those states which levy income taxes on partnerships. For the years ended December 31, 2015 and 2014 , the related provision for state income taxes was approximately $68 thousand and $31 thousand, respectively. The Company does not have any entity level uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions and is generally subject to examination by U.S. federal (or state and local) income tax authorities for three years from the filing of a tax return. The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2015 and 2014 as follows (in thousands): 2015 2014 Financial statement basis of net assets $ 9,730 $ 11,852 Tax basis of net assets (unaudited) 18,433 17,739 Difference $ (8,703) $ (5,887) The primary differences between the tax bases of net assets and the amounts recorded in the financial statements are the result of differences in accounting for syndication costs and differences between the depreciation methods used in the financial statements and the Company’s tax returns. The following reconciles the net income reported in these financial statements to the income reported on the Company’s federal tax return (unaudited) for each of the years ended December 31, 2015 and 2014 (in thousands): 2015 2014 Net income per financial statements $ 3,091 $ 5,370 Tax adjustments (unaudited): Adjustment to depreciation expense (430) 36 Provision for losses and doubtful accounts (6) 4 Adjustments to revenues / other expenses 2,616 2,121 Adjustments to gain on sales of assets 504 637 Other 132 (15) Income per federal tax return (unaudited) $ 5,907 $ 8,153 Other expense, net: Other expense, net for the years ended December 31, 2015 and 2014 consisted solely of net losses on foreign exchange transactions. Such net losses were nominal for both 2015 and 2014. 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: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts from Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company evaluated the impact of the new standard on its financial statements and has determined that such impact is virtually non-existent as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues. In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements — Going Concern (subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU-2014-15”). The new standard provides guidance relative to management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Management does not expect the adoption of ASU 2014-15 to have a material impact on the Company’s financial statements or related disclosures. |
Concentration of Credit Risk an
Concentration of Credit Risk and Major Customer | 12 Months Ended |
Dec. 31, 2015 | |
Concentration of Credit Risk and Major Customers [Abstract] | |
Concentration of Credit Risk and Major Customers | 3. Concentration of credit risk and major customers: The Company leases equipment to lessees and provides debt financing to borrowers in diversified industries. Leases and notes receivable are subject to AFS’s credit committee review. The leases and notes receivable provide for the return of the equipment to the Company upon default. As of December 31, 2015 and 2014, there were concentrations (greater than or equal to 10% as a percentage of total equipment cost) of equipment leased to lessees and/or financed for borrowers in certain industries as follows: 2015 2014 Transportation, rail 27% 23% Marine transportation/Transportation, other 25% 24% Mining 20% 22% Paper products 12% * * Less than 10% During 2015 and 2014, certain lessees and/or financial borrowers generated significant portions (defined as greater than or equal to 10%) of the Company’s total leasing and lending revenues, excluding gains or losses on disposition of assets, as follows : Percentage of Total Leasing and Lending Revenues Lessee Type of Equipment 2015 2014 The Sabine Mining Company Mining 33% 33% Yellow Fin Marine Services LLC Transportation, marine 15% 12% Union Pacific Railroad Company Transportation, rail 12% 11% |
Notes Receivable, Net
Notes Receivable, Net | 12 Months Ended |
Dec. 31, 2015 | |
Notes Receivable, Net [Abstract] | |
Notes Receivable, Net | 4 . 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 December 31, 2014, only one note receivable remained unsettled with a net outstanding balance of $332 thousand, an annual interest rate of 8.51 %, a nd a maturity date of January 1, 2016 . Such note was fully settled in December 2015. |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2015 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses | 5 . Allowance for credit losses : The Company’s allowance for credit losses are as follows (in thousands): Accounts Receivable Allowance for Doubtful Accounts Valuation Adjustments on Financing Receivables Total Allowance for Credit Losses Notes Receivable Finance Leases Operating Leases Notes Receivable Finance Leases Balance December 31, 2013 $ - $ - $ 3 $ - $ - $ 3 Provision - - 4 - - 4 Balance December 31, 2014 - - 7 - - 7 Reversal of provision - - (6) - - (6) Balance December 31, 2015 $ - $ - $ 1 $ - $ - $ 1 Accounts R eceivable 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 R eceivable s 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 December 31, 2015 and 2014 , the Company’s allowance for credit losses (related solely to financing receivables) and its recorded investment in financing receivables were as follows (in thousands): December 31, 2015 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 $ - $ 6,217 1 $ 6,217 Ending balance: individually evaluated for impairment $ - $ 6,217 $ 6,217 Ending balance: collectively evaluated for impairment $ - $ - $ - Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - 1 Includes $1 of unamortized initial direct costs December 31, 2014 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 $ 332 $ 8,807 2 $ 9,139 Ending balance: individually evaluated for impairment $ 332 $ 8,807 $ 9,139 Ending balance: collectively evaluated for impairment $ - $ - $ - Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - 2 Includes $5 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 m anager 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 December 31, 2015 and 2014 , 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 2015 2014 2015 2014 Pass $ - $ 332 $ 6,216 $ 8,802 Special mention - - - - Substandard - - - - Doubtful - - - - Total $ - $ 332 $ 6,216 $ 8,802 As of December 31, 2015 and 2014, the investment in financing receivables is aged as follows (in thousands): December 31, 2015 31-60 Days Past Due 61-90 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment > 90 Days and Accruing Finance leases $ - $ - $ - $ - $ 6,216 $ 6,216 $ - Total $ - $ - $ - $ - $ 6,216 $ 6,216 $ - December 31, 2014 31-60 Days Past Due 61-90 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment > 90 Days and Accruing Notes receivable $ - $ - $ - $ - $ 332 $ 332 $ - Finance leases - - - - 8,802 8,802 - Total $ - $ - $ - $ - $ 9,134 $ 9,134 $ - The Company had neither financing receivables in non-accrual status nor impaired financing receivables at both December 31, 2015 and 2014. 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 December 31, 2015 and 2014 . |
Investments in Equipment and Le
Investments in Equipment and Leases, Net | 12 Months Ended |
Dec. 31, 2015 | |
Investments in Equipment and Leases, Net [Abstract] | |
Investments in Equipment and Leases, Net | 6 . Investment in equipment and leases, net: The C ompany’s investment in leases consists of the following (in thousands): Balance December 31, 2014 Reclassifications, Additions/ Dispositions and Impairment Losses Depreciation/ Amortization Expense or Amortization of Leases Balance December 31, 2015 Net investment in operating leases $ 6,196 $ (1,185) $ (899) $ 4,112 Net investment in direct financing leases 8,802 - (2,586) 6,216 Assets held for sale or lease, net 250 547 - 797 Initial direct costs, net of accumulated amortization of $83 at December 31, 2015 and $90 at December 31, 2014 8 - (6) 2 Total $ 15,256 $ (638) $ (3,491) $ 11,127 Impairment of investments in leases and assets held for sale or lease: Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances. As a result of these reviews , the Company recorded $132 thousand and $37 thousand of fair value adjustments to reduce the cost basis of certain impaired off-lease equipment during 2015 and 2014, respectively. As of December 31, 2015 and 2014 , there were no lease contracts placed in non-accrual status. As of the same dates, the Company had certain other leases with related accounts receivable aged 90 days or more that had not been placed on non-accrual status. In accordance with Company policy, the related accounts receivable were 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 exp ense on the Company’s equipment was approximately $899 thousan d and $1.5 million for the respective years ended December 31, 2015 and 2014. IDC amortization expense totaled $6 thousand and $10 thousand during 2015 and 2014, respectively, all of which was related to operating leases and direct financing leases. All of the leased property was acquired during the years 2001 through 2010. Operating leases: Property on operating leases consists of the following (in thousands): Balance December 31, 2014 Additions Reclassifications or Dispositions Balance December 31, 2015 Transportation, rail $ 12,531 $ - $ (377) $ 12,154 Marine vessels 11,200 - (1,500) 9,700 Transportation, other 3,932 - (1,921) 2,011 Materials handling 823 - (195) 628 Construction 565 - - 565 Manufacturing 1,417 - (889) 528 Agriculture 1,151 - (1,151) - Other 16 - - 16 31,635 - (6,033) 25,602 Less accumulated depreciation (25,439) (899) 4,848 (21,490) Total $ 6,196 $ (899) $ (1,185) $ 4,112 The average estimated residual value for assets on operating leases was 12 % and 16 % of the assets’ original cost at December 31, 2015 and 2014 , respectively . There were no operating leases placed in non-accrual status as of December 31, 2015 and 2014 . 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 record ed when earned and/or incurred. The revenues associated with these rentals are included as a component of Operating Lease R evenues and totaled $97 thousand and $ 179 thousand during the years ended December 31, 2015 and 2014, respectively. Direct financing leases: As of December 31, 2015 and 2014, investment in direct financing leases consists of materials handling and mining equipment. The following lists the components of the Company’s investment in direct financing leases as of December 31, 2015 and 2014 (in thousands): 2015 2014 Total minimum lease payments receivable $ 3,687 $ 8,140 Estimated residual values of leased equipment (unguaranteed) 3,543 3,543 Investment in direct financing leases 7,230 11,683 Less unearned income (1,014) (2,881) Net investment in direct financing leases $ 6,216 $ 8,802 There was no investment in direct financing lease assets in non-accrual status at December 31, 2015 and 2014 . At December 31, 2015 , the aggregate amounts of future minimum lease payments receivable are as follows (in thousands): Operating Leases Direct Financing Leases Total Year ending December 31, 2016 $ 2,033 $ 3,686 $ 5,719 2017 1,700 1 1,701 2018 940 - 940 2019 834 - 834 2020 541 - 541 $ 6,048 $ 3,687 $ 9,735 The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of December 31, 2015 and 2014, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years): Equipment category Useful Life Transportation, rail 35 - 40 Mining 30 - 40 Marine vessels 20 - 30 Manufacturing 10 - 15 Agriculture 7 - 10 Construction 7 - 10 Materials handling 7 - 10 Transportation, other 7 - 10 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7 . 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 w il l 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 services 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 total 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 December 31, 2015 , the Company has not exceeded the annual and/or cumulative limitations discussed above. AFS and/or affiliates earned fees and reimbursements, pursuant to the Operating Agreement as follows during each of the years ended December 31, 2015 and 2014 (in thousands): 2015 2014 Costs reimbursed to Managing Member and/or affiliates $ 517 $ 557 Asset management fees to Managing Member and/or affiliates 296 471 $ 813 $ 1,028 |
Non-Recourse Debt
Non-Recourse Debt | 12 Months Ended |
Dec. 31, 2015 | |
Non-Recourse Debt [Abstract] | |
Non-Recourse Debt | 8 . N on-recourse debt: At December 31, 2015 , 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. 58 % to 6.66 %. The notes are secured by assignments of lease payments and pledges of assets. At December 31, 2015 , future payments on direct financing leases totaled approximately $ 3.7 million over the remaining lease terms; and the carrying value of the pledged assets is $ 6.2 million . The notes mature from 201 6 through 2017 . The non-recourse debt do es not contain any material financial covenant s . The debt is secured by lien s granted by the Company to the non-recourse lender s on (and only on) the discounted lease transaction s . The lender s ha ve 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 t he 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 lender s , 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 obligation s . 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 Year ending December 31, 2016 $ 3,743 $ 133 $ 3,876 2017 178 1 179 $ 3,921 $ 134 $ 4,055 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 9. Commitments and c ontingencies: At December 31, 2015, the Company had no commitments to purchase lease assets or fund investments in notes receivable . |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2015 | |
Guarantees [Abstract] | |
Guarantees | 10 . 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 | 12 Months Ended |
Dec. 31, 2015 | |
Members' Capital [Abstract] | |
Members' Capital | 11 . Members’ capital: As of December 31, 2015 and 2014 , 12,055,016 Units were issued and outstanding . The Company was authorized to issue up to 15,000,000 Units in addition to t he Units issued to the initial member ( 50 Units). The Company has the right, exercisable in 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 r equest. The repurchase of Fund u nits 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 in 2015 and 2014 . The amounts allocated were determined to bring AFS’s ending capital account balance to zero at the end of each year . Distributions to the Other Members were as fol lows (in thousands, except Units and per Unit data): 2015 2014 Distributions declared $ 4,822 $ 5,425 Weighted average number of Units outstanding 12,055,016 12,055,016 Weighted average distributions per Unit $ 0.40 $ 0.45 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 12 . 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 December 31, 2015 and 2014, only the Company’s warrants were measured on a recurring basis. During the same comparative years, the Company recorded non-recurring adjustments to reduce the cost basis of certain equipment deemed impaired. Amounts at December 31, 2015 and 2014 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 December 31, 2015, the Company’s remaining warrants had no value. Such warrants expired in January 2016. By comparision, a s of December 31, 2014, the estimated fair value of the Company’s portfolio of warrants amounted to $125 thousand. 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, 2014 $ 125 Unrealized loss on warrants, net recorded during the year (125) Balance at December 31, 2015 $ - Impaired off-lease equipment (non-recurring) During 2015 and 2014, the Company deemed certain off-lease equipment (assets) to be impaired and recorded fair value adjustments of $132 thousand and $37 thousand, respectively, to reduce the cost basis of the equipment. The aforementioned 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. The assets impaired during 2014 were all disposed of by December 31, 2014. The table below presents the fair value measurement of assets and liabilities 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, 2015 (in thousands): December 31, 2015 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 $ 300 $ - $ - $ 300 The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation/adjustments categorized as Level 3 in the fair value hierarchy as of December 31, 2015 and 2014 : December 31, 2015 Name Valuation Frequency Valuation Technique Unobservable Inputs Range of Input Values Warrants Recurring Black-Scholes formulation Stock price $2.01 Exercise price $2.01 Time to maturity (in years) 0.04 Risk-free interest rate 0.14% Annualized volatility 100.00% Off-lease Equipment Non-recurring Market Approach Third Party Agents' Pricing Quotes - per equipment $100,000 (total of $300,000 ) Equipment Condition Poor to Average December 31, 2014 Name Valuation Frequency Valuation Technique Unobservable Inputs Range of Input Values Warrants Recurring Black-Scholes formulation Stock price $1.12 - $4.48 Exercise price $0.65 - $2.01 Time to maturity (in years) 1.04 - 5.50 Risk-free interest rate 0.25% - 1.73% Annualized volatility 16.01% - 100.00% 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 estimated using either third party appraisals of collateral or discounted cash flow analyses based upon current market rates for similar types of lending arrangements, with credit risk or estimated collateral liquidation 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 Codificati on at December 31, 2015 and 2014 (in thousands): Fair Value Measurements at December 31, 2015 Carrying Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 2,240 $ 2,240 $ - $ - $ 2,240 Investment in securities 5 - - 5 5 Financial liabilities: Non-recourse debt 3,921 - - 3,971 3,971 Fair Value Measurements at December 31, 2014 Carrying Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 4,633 $ 4,633 $ - $ - $ 4,633 Notes receivable, net 332 - - 332 332 Investment in securities 5 - - 5 5 Warrants 125 - - 125 125 Financial liabilities: Non-recourse debt 8,537 - - 8,747 8,747 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation: The accompanying balance sheets as of December 31, 2015 and 2014, and the related statements of income, changes in members’ capital, and cash flows for the years then ended, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission. Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no significant effect on the reported financial position or results of operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after December 31, 2015, up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements. |
Use of Estimates | Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates relate primarily to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and determination of the allowance for doubtful accounts. |
Cash and Cash Equivalents | Cash and cash equivalents: Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less. |
Credit Risk | Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating and direct financing lease receivables, notes receivable and accounts receivable. The Company generally places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Funds’ cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts and notes receivable represent amounts due from lessees or borrowers in various industries, related to equipment on operating and direct financing leases or notes receivable. |
Accounts Receivable | Accounts receivable: Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and notes receivable which are due to the Company. Allowances for doubtful accounts are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and invoiced amounts. Accounts receivable deemed uncollectible are charged off to the allowance on a specific identification basis. Amounts recovered that were previously written-off are recorded as other income in the period received. |
Equipment on Operating Leases and Related Revenue Recognition | Equipment on operating leases and related revenue recognition: Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with ASC 840-20-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360-10-35-43). The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized. Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances. The Company earns revenues from its marine vessel based on charter utilization of the vessel or a fixed term lease. When the vessel is chartered, contingent rentals and the associated expenses are recorded when earned and/or incurred. From time to time, the Company incurs “drydocking” costs on its vessel. Drydocking costs include labor and material costs related to refurbishing, overhauling and/or replacing engine and other major mechanical components of the vessel, hull maintenance and other repairs that bring the vessel into seaworthy compliance with U.S. marine codes in order to have it certified as available for charter. Such drydocking costs are capitalized and added to the equipment cost and depreciated over the period between scheduled drydockings, which generally occur every 24 to 30 months. |
Direct Financing Leases and Related Revenue Recognition | Direct financing leases and related revenue recognition: Income from direct financing lease transactions is reported using the financing method of accounting, in which the Company’s investment in the leased property is reported as a receivable from the lessee to be recovered through future rentals. The interest income portion of each rental payment is calculated so as to generate a constant rate of return on the net receivable outstanding. Allowances for losses on direct financing leases are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and billed and unbilled receivables. Direct financing leases are charged off to the allowance as they are deemed uncollectible. Direct financing leases are generally placed in a non-accrual status (i.e., no revenue is recognized) and deemed impaired when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of all direct finance lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related direct financing leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, all payments received are applied only against outstanding principal balances. |
Notes Receivable, Unearned Interest Income and Related Revenue Recognition | Notes receivable, unearned interest income and related revenue recognition: The Company records all future payments of principal and interest on notes as notes receivable which is then offset by the amount of any related unearned interest income. For financial statement purposes, the Company reports only the net amount of principal due on the balance sheet. The unearned interest is recognized over the term of the note and the income portion of each note payment is calculated so as to generate a constant rate of return on the net balance outstanding. Any fees or costs related to notes receivable are recorded as part of the net investment in notes receivable and amortized over the term of the loan. Allowances for losses on notes receivable are typically established based on historical charge off and collection experience and the collectability of specifically identified borrowers and billed and unbilled receivables. 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 payments 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 for losses as they are deemed uncollectible. Notes 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 note payments outstanding less than 90 days. Based upon management’s judgment, notes may be placed in a non-accrual status. 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, all payments received are applied only against outstanding principal balances. |
Initial Direct Costs | Initial direct costs: The Company capitalizes initial direct costs (“IDC”) associated with the origination and funding of lease assets and investments in notes receivable . IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease and loan originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease (or note by note) basis based on actual contract term using a straight-line method for operating leases and the effective interest rate method for direct financing leases and notes receivable. Upon disposal of the underlying lease or loan assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases or notes receivable that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense. |
Acquisition Expense | Acquisition expense: Acquisition expense represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses and miscellaneous expenses related to the selection and acquisition of equipment which are reimbursable to the Managing Member under the terms of the Operating Agreement. As the costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred. |
Asset Valuation | Asset valuation: Recorded values of the Company’s leased asset portfolio are periodically reviewed for impairment. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the market place are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. |
Segment Reporting | Segment reporting: The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States. The Company’s principal decision makers are the Managing Member’s Chief Executive Officer and its Chief Financial Officer and Chief Operating Officer. The Company believes that its equipment leasing business operates as one reportable segment because: a) the Company measures profit and loss at the equipment portfolio level as a whole; b) the principal decision makers do not review information based on any operating segment other than the equipment leasing transaction portfolio; c) the Company does not maintain discrete financial information on any specific segment other than its equipment financing operations; d) the Company has not chosen to organize its business around different products and services other than equipment lease financing; and e) the Company has not chosen to organize its business around geographic areas. The primary geographic regions in which the Company seeks leasing and lending 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 years ended December 31, 2015 and 2014 and long-lived assets as of December 31, 2015 and 2014 (dollars in thousands): For The Year Ended December 31, 2015 % of Total 2014 % of Total Revenue United States $ 5,936 99% $ 9,108 99% United Kingdom 41 1% 80 1% Total International 41 1% 80 1% Total $ 5,977 100% $ 9,188 100% As of December 31, 2015 % of Total 2014 % of Total Long-lived assets United States $ 11,093 100% $ 15,222 100% United Kingdom 34 0% 34 0% Total International 34 0% 34 0% Total $ 11,127 100% $ 15,256 100% |
Foreign Currency Transactions | Foreign currency transactions: Foreign currency transaction gains and losses are reported in the results of operations as “other income” or “other expense” in the period in which they occur. Currently, the Company does not use derivative instruments to hedge its economic exposure with respect to assets, liabilities and firm commitments as the foreign currency transactions risks to date have not been significant. During 2015 and 2014, the Company’s net foreign currency gains (losses) were nominal. |
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 December 31, 2015 and 2014 nor investment securities sold or disposed of during the years ended December 31, 2015 and 2014. Warrants Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet as determined by the Managing Member. During 2015 and 2014 , the Company recorded unrealized losses of $125 thousand and $52 thousand, respectively, on the fair valuation of its warrant holdings. As of December 31, 2015, the Company’s remaining warrants had no value. Such warrants expired in January 2016. By comparison, as of December 31, 2014, the estimated fair value of the Company’s portfolio of warrants amounted to $125 thousand. During 2015 and 2014, the Company realized an approximate $94 thousand and $44 thousand of gains on the net exercise of warrants. |
Unearned Operating Lease Income | Unearned operating lease income: The Company records prepayments on operating leases as a liability under the caption of unearned operating lease income. The liability is recorded when prepayments are received and recognized as operating lease revenue over the period to which the prepayments relate using a straight-line method. |
Income Taxes | Income taxes: The Company is treated as a partnership for federal income tax purposes. Pursuant to the provisions of Section 701 of the Internal Revenue Code, a partnership is not subject to federal income taxes. Accordingly, the Company has provided current income taxes for only those states which levy income taxes on partnerships. For the years ended December 31, 2015 and 2014 , the related provision for state income taxes was approximately $68 thousand and $31 thousand, respectively. The Company does not have any entity level uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions and is generally subject to examination by U.S. federal (or state and local) income tax authorities for three years from the filing of a tax return. The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2015 and 2014 as follows (in thousands): 2015 2014 Financial statement basis of net assets $ 9,730 $ 11,852 Tax basis of net assets (unaudited) 18,433 17,739 Difference $ (8,703) $ (5,887) The primary differences between the tax bases of net assets and the amounts recorded in the financial statements are the result of differences in accounting for syndication costs and differences between the depreciation methods used in the financial statements and the Company’s tax returns. The following reconciles the net income reported in these financial statements to the income reported on the Company’s federal tax return (unaudited) for each of the years ended December 31, 2015 and 2014 (in thousands): 2015 2014 Net income per financial statements $ 3,091 $ 5,370 Tax adjustments (unaudited): Adjustment to depreciation expense (430) 36 Provision for losses and doubtful accounts (6) 4 Adjustments to revenues / other expenses 2,616 2,121 Adjustments to gain on sales of assets 504 637 Other 132 (15) Income per federal tax return (unaudited) $ 5,907 $ 8,153 |
Other income (expense), net | Other expense, net: Other expense, net for the years ended December 31, 2015 and 2014 consisted solely of net losses on foreign exchange transactions. Such net losses were nominal for both 2015 and 2014. |
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: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts from Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company evaluated the impact of the new standard on its financial statements and has determined that such impact is virtually non-existent as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues. In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements — Going Concern (subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU-2014-15”). The new standard provides guidance relative to management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Management does not expect the adoption of ASU 2014-15 to have a material impact on the Company’s financial statements or related disclosures. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue and Long-Lived Assets | The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the years ended December 31, 2015 and 2014 and long-lived assets as of December 31, 2015 and 2014 (dollars in thousands): For The Year Ended December 31, 2015 % of Total 2014 % of Total Revenue United States $ 5,936 99% $ 9,108 99% United Kingdom 41 1% 80 1% Total International 41 1% 80 1% Total $ 5,977 100% $ 9,188 100% As of December 31, 2015 % of Total 2014 % of Total Long-lived assets United States $ 11,093 100% $ 15,222 100% United Kingdom 34 0% 34 0% Total International 34 0% 34 0% Total $ 11,127 100% $ 15,256 100% |
Schedule of Differences Between Book Value and Tax Basis of Net Assets | The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2015 and 2014 as follows (in thousands): 2015 2014 Financial statement basis of net assets $ 9,730 $ 11,852 Tax basis of net assets (unaudited) 18,433 17,739 Difference $ (8,703) $ (5,887) |
Reconciliation of Net Income (Loss) Reported in Financial Statements and Federal Tax Return | The following reconciles the net income reported in these financial statements to the income reported on the Company’s federal tax return (unaudited) for each of the years ended December 31, 2015 and 2014 (in thousands): 2015 2014 Net income per financial statements $ 3,091 $ 5,370 Tax adjustments (unaudited): Adjustment to depreciation expense (430) 36 Provision for losses and doubtful accounts (6) 4 Adjustments to revenues / other expenses 2,616 2,121 Adjustments to gain on sales of assets 504 637 Other 132 (15) Income per federal tax return (unaudited) $ 5,907 $ 8,153 |
Concentration of Credit Risk 22
Concentration of Credit Risk and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Concentration of Credit Risk and Major Customers [Abstract] | |
Schedule of Equipment Leased, Credit Risk Concentration | As of December 31, 2015 and 2014, there were concentrations (greater than or equal to 10% as a percentage of total equipment cost) of equipment leased to lessees and/or financed for borrowers in certain industries as follows: 2015 2014 Transportation, rail 27% 23% Marine transportation/Transportation, other 25% 24% Mining 20% 22% Paper products 12% * * Less than 10% |
Schedule of Major Customers Credit Risk Concentration | During 2015 and 2014, certain lessees and/or financial borrowers generated significant portions (defined as greater than or equal to 10%) of the Company’s total leasing and lending revenues, excluding gains or losses on disposition of assets, as follows : Percentage of Total Leasing and Lending Revenues Lessee Type of Equipment 2015 2014 The Sabine Mining Company Mining 33% 33% Yellow Fin Marine Services LLC Transportation, marine 15% 12% Union Pacific Railroad Company Transportation, rail 12% 11% |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 for Doubtful Accounts Valuation Adjustments on Financing Receivables Total Allowance for Credit Losses Notes Receivable Finance Leases Operating Leases Notes Receivable Finance Leases Balance December 31, 2013 $ - $ - $ 3 $ - $ - $ 3 Provision - - 4 - - 4 Balance December 31, 2014 - - 7 - - 7 Reversal of provision - - (6) - - (6) Balance December 31, 2015 $ - $ - $ 1 $ - $ - $ 1 |
Allowance for Credit Losses and Recorded Investment in Financing Receivables | As of December 31, 2015 and 2014 , the Company’s allowance for credit losses (related solely to financing receivables) and its recorded investment in financing receivables were as follows (in thousands): December 31, 2015 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 $ - $ 6,217 1 $ 6,217 Ending balance: individually evaluated for impairment $ - $ 6,217 $ 6,217 Ending balance: collectively evaluated for impairment $ - $ - $ - Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - 1 Includes $1 of unamortized initial direct costs December 31, 2014 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 $ 332 $ 8,807 2 $ 9,139 Ending balance: individually evaluated for impairment $ 332 $ 8,807 $ 9,139 Ending balance: collectively evaluated for impairment $ - $ - $ - Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - 2 Includes $5 of unamortized initial direct costs |
Financing Receivables by Credit Quality Indicator and by Class | At December 31, 2015 and 2014 , 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 2015 2014 2015 2014 Pass $ - $ 332 $ 6,216 $ 8,802 Special mention - - - - Substandard - - - - Doubtful - - - - Total $ - $ 332 $ 6,216 $ 8,802 |
Net Investment in Financing Receivables by Age | As of December 31, 2015 and 2014, the investment in financing receivables is aged as follows (in thousands): December 31, 2015 31-60 Days Past Due 61-90 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment > 90 Days and Accruing Finance leases $ - $ - $ - $ - $ 6,216 $ 6,216 $ - Total $ - $ - $ - $ - $ 6,216 $ 6,216 $ - December 31, 2014 31-60 Days Past Due 61-90 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment > 90 Days and Accruing Notes receivable $ - $ - $ - $ - $ 332 $ 332 $ - Finance leases - - - - 8,802 8,802 - Total $ - $ - $ - $ - $ 9,134 $ 9,134 $ - |
Investment in Equipment and Lea
Investment in Equipment and Leases, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Investment in Leases | The C ompany’s investment in leases consists of the following (in thousands): Balance December 31, 2014 Reclassifications, Additions/ Dispositions and Impairment Losses Depreciation/ Amortization Expense or Amortization of Leases Balance December 31, 2015 Net investment in operating leases $ 6,196 $ (1,185) $ (899) $ 4,112 Net investment in direct financing leases 8,802 - (2,586) 6,216 Assets held for sale or lease, net 250 547 - 797 Initial direct costs, net of accumulated amortization of $83 at December 31, 2015 and $90 at December 31, 2014 8 - (6) 2 Total $ 15,256 $ (638) $ (3,491) $ 11,127 |
Property on Operating Leases | Property on operating leases consists of the following (in thousands): Balance December 31, 2014 Additions Reclassifications or Dispositions Balance December 31, 2015 Transportation, rail $ 12,531 $ - $ (377) $ 12,154 Marine vessels 11,200 - (1,500) 9,700 Transportation, other 3,932 - (1,921) 2,011 Materials handling 823 - (195) 628 Construction 565 - - 565 Manufacturing 1,417 - (889) 528 Agriculture 1,151 - (1,151) - Other 16 - - 16 31,635 - (6,033) 25,602 Less accumulated depreciation (25,439) (899) 4,848 (21,490) Total $ 6,196 $ (899) $ (1,185) $ 4,112 |
Components of Company's Investment in Direct Financing Leases | The following lists the components of the Company’s investment in direct financing leases as of December 31, 2015 and 2014 (in thousands): 2015 2014 Total minimum lease payments receivable $ 3,687 $ 8,140 Estimated residual values of leased equipment (unguaranteed) 3,543 3,543 Investment in direct financing leases 7,230 11,683 Less unearned income (1,014) (2,881) Net investment in direct financing leases $ 6,216 $ 8,802 |
Future Minimum Lease Payments Receivable | At December 31, 2015 , the aggregate amounts of future minimum lease payments receivable are as follows (in thousands): Operating Leases Direct Financing Leases Total Year ending December 31, 2016 $ 2,033 $ 3,686 $ 5,719 2017 1,700 1 1,701 2018 940 - 940 2019 834 - 834 2020 541 - 541 $ 6,048 $ 3,687 $ 9,735 |
Schedule of Useful Lives of Assets | The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of December 31, 2015 and 2014, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years): Equipment category Useful Life Transportation, rail 35 - 40 Mining 30 - 40 Marine vessels 20 - 30 Manufacturing 10 - 15 Agriculture 7 - 10 Construction 7 - 10 Materials handling 7 - 10 Transportation, other 7 - 10 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement | AFS and/or affiliates earned fees and reimbursements, pursuant to the Operating Agreement as follows during each of the years ended December 31, 2015 and 2014 (in thousands): 2015 2014 Costs reimbursed to Managing Member and/or affiliates $ 517 $ 557 Asset management fees to Managing Member and/or affiliates 296 471 $ 813 $ 1,028 |
Non-Recourse Debt (Tables)
Non-Recourse Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 Year ending December 31, 2016 $ 3,743 $ 133 $ 3,876 2017 178 1 179 $ 3,921 $ 134 $ 4,055 |
Members' Capital (Tables)
Members' Capital (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Members' Capital [Abstract] | |
Distributions to Other Members | Distributions to the Other Members were as fol lows (in thousands, except Units and per Unit data): 2015 2014 Distributions declared $ 4,822 $ 5,425 Weighted average number of Units outstanding 12,055,016 12,055,016 Weighted average distributions per Unit $ 0.40 $ 0.45 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2014 $ 125 Unrealized loss on warrants, net recorded during the year (125) Balance at December 31, 2015 $ - |
Fair Value Measurement of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The table below presents the fair value measurement of assets and liabilities 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, 2015 (in thousands): December 31, 2015 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 $ 300 $ - $ - $ 300 |
Summary of Valuation Techniques and Significant Unobservable Inputs Used | The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation/adjustments categorized as Level 3 in the fair value hierarchy as of December 31, 2015 and 2014 : December 31, 2015 Name Valuation Frequency Valuation Technique Unobservable Inputs Range of Input Values Warrants Recurring Black-Scholes formulation Stock price $2.01 Exercise price $2.01 Time to maturity (in years) 0.04 Risk-free interest rate 0.14% Annualized volatility 100.00% Off-lease Equipment Non-recurring Market Approach Third Party Agents' Pricing Quotes - per equipment $100,000 (total of $300,000 ) Equipment Condition Poor to Average December 31, 2014 Name Valuation Frequency Valuation Technique Unobservable Inputs Range of Input Values Warrants Recurring Black-Scholes formulation Stock price $1.12 - $4.48 Exercise price $0.65 - $2.01 Time to maturity (in years) 1.04 - 5.50 Risk-free interest rate 0.25% - 1.73% Annualized volatility 16.01% - 100.00% |
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 Codificati on at December 31, 2015 and 2014 (in thousands): Fair Value Measurements at December 31, 2015 Carrying Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 2,240 $ 2,240 $ - $ - $ 2,240 Investment in securities 5 - - 5 5 Financial liabilities: Non-recourse debt 3,921 - - 3,971 3,971 Fair Value Measurements at December 31, 2014 Carrying Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 4,633 $ 4,633 $ - $ - $ 4,633 Notes receivable, net 332 - - 332 332 Investment in securities 5 - - 5 5 Warrants 125 - - 125 125 Financial liabilities: Non-recourse debt 8,537 - - 8,747 8,747 |
Organization and Limited Liab29
Organization and Limited Liability Company Matters (Narrative) (Details) - USD ($) | Jan. 16, 2001 | Dec. 31, 2009 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 15, 2003 | Apr. 03, 2001 | Feb. 21, 2001 | Dec. 31, 2000 |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||
Limited Liability Company, business cessation date | Dec. 31, 2020 | ||||||||
Contributions of capital | $ 600 | ||||||||
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 | |||||||
Proceeds from sale of Limited Liability Company Units | $ 120,700,000 | ||||||||
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 | ||||||||
Minimum [Member] | |||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||
Contributions of capital | $ 7,500,000 | ||||||||
Sale of Limited Liability Company Units, number of Units | 120,000 | ||||||||
Proceeds from sale of Limited Liability Company Units | $ 1,200,000 | ||||||||
Atel Financial Services LLC [Member] | |||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||
Capital investment | 100 | ||||||||
Members Equity Contributions [Member] | Atel Financial Services LLC [Member] | |||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||
Contributions of capital | $ 500 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | |
Unrealized loss on fair valuation of warrants | $ (125) | $ (52) |
Number of operating segments | segment | 1 | |
Number of reportable segments | segment | 1 | |
Fair value of warrants | 125 | |
Gain on exercise of warrants | $ 94 | 44 |
Provision for franchise fees and state income taxes | $ 68 | $ 31 |
Period subject to income tax examination | 3 years | |
Minimum [Member] | ||
Required assets value of financial institutions for cash deposits | $ 10,000,000 | |
Operating leases, initial terms | 36 months | |
Operating leases, Period for non accrual status | 90 days | |
Direct financing leases, period for non accrual status | 90 days | |
Note receivable, period for non accrual status | 90 days | |
Period of scheduled vessel drydocking | 24 months | |
Maximum [Member] | ||
U.S. Treasury instruments maturity period | 90 days | |
Cash deposits, insured amount | $ 250 | |
Operating leases, initial terms | 120 months | |
Equipment and lessee period of review for impairment | 90 days | |
Direct financing leases, period of review for impairment | 90 days | |
Note receivable, period of review for impairment | 90 days | |
Period of scheduled vessel drydocking | 30 months |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue and Long-Lived Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 5,977 | $ 9,188 |
Percentage of total revenue | 100.00% | 100.00% |
Long-lived assets | $ 11,127 | $ 15,256 |
Percentage of long lived assets | 100.00% | 100.00% |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 5,936 | $ 9,108 |
Percentage of total revenue | 99.00% | 99.00% |
Long-lived assets | $ 11,093 | $ 15,222 |
Percentage of long lived assets | 100.00% | 100.00% |
United Kingdom [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 41 | $ 80 |
Percentage of total revenue | 1.00% | 1.00% |
Long-lived assets | $ 34 | $ 34 |
Percentage of long lived assets | 0.00% | 0.00% |
Total International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 41 | $ 80 |
Percentage of total revenue | 1.00% | 1.00% |
Long-lived assets | $ 34 | $ 34 |
Percentage of long lived assets | 0.00% | 0.00% |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Schedule of Differences Between Book Value and Tax Basis of Net Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Summary of Significant Accounting Policies [Abstract] | |||
Financial statement basis of net assets | $ 9,730 | $ 11,852 | $ 12,347 |
Tax basis of net assets (unaudited) | 18,433 | 17,739 | |
Difference | $ (8,703) | $ (5,887) |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Reconciliation of Net Income Loss Reported in Financial Statements and Federal Tax Return) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | ||
Net income per financial statements | $ 3,091 | $ 5,370 |
Adjustment to depreciation expense | (430) | 36 |
Provision for losses and doubtful accounts | (6) | 4 |
Adjustments to revenues / other expenses | 2,616 | 2,121 |
Adjustments to gain on sales of assets | 504 | 637 |
Other | 132 | (15) |
Income per federal tax return (unaudited) | $ 5,907 | $ 8,153 |
Concentration of Credit Risk 34
Concentration of Credit Risk and Major Customers (Schedule of Leasing and Lending Revenues) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Transportation, Rail [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 27.00% | 23.00% | |
Transportation, Other [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 25.00% | 24.00% | |
Mining [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 20.00% | 22.00% | |
Paper Products [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 12.00% | [1] | |
Sabine Mining Company [Member] | Mining [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 33.00% | 33.00% | |
Yellow Fin Marine Services LLC [Member] | Transportation, Other [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 15.00% | 12.00% | |
Union Pacific Railroad Company [Member] | Transportation, Rail [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 12.00% | 11.00% | |
[1] | Less than 10% |
Notes Receivable, Net (Narrativ
Notes Receivable, Net (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Notes Receivable, Net [Abstract] | |
Notes receivable, net of unearned interest income of $0 at December 31, 2015 and $22 at December 31, 2014 | $ 332 |
Notes receivable, interest rate | 8.51% |
Notes maturity period | Jan. 1, 2016 |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum [Member] | |
Notes receivable, period for non-accrual status | 90 days |
Accounts receivable, period for non-accrual status | 90 days |
Operating leases, period for non accrual-status | 90 days |
Maximum [Member] | |
Accounts receivable, period of review for impairment | 90 days |
Equipment and lessee period of review for impairment | 90 days |
Allowance for Credit Losses (Ac
Allowance for Credit Losses (Activity in Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | $ 7 | $ 3 |
Provision (Reversal of provision) | (6) | 4 |
Ending Balance | 1 | 7 |
Allowance For Doubtful Accounts [Member] | Operating Leases [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | 7 | 3 |
Provision (Reversal of provision) | (6) | 4 |
Ending Balance | $ 1 | $ 7 |
Valuation Adjustments on Financing Receivables [Member] | Finance Leases [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | ||
Provision (Reversal of provision) | ||
Ending Balance |
Allowance for Credit Losses (Al
Allowance for Credit Losses (Allowance for Credit Losses and Recorded Investment in Financing Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | ||
Allowances for credit losses: | ||||
Ending balance: loans acquired with deteriorated credit quality | ||||
Ending balance: individually evaluated for impairment | ||||
Ending balance: collectively evaluated for impairment | ||||
Ending balance: loans acquired with deteriorated credit quality | $ 332 | |||
Notes Receivable, Net [Abstract] | ||||
Ending balance | $ 6,217 | 9,139 | ||
Ending balance: individually evaluated for impairment | $ 6,217 | $ 9,139 | ||
Ending balance: collectively evaluated for impairment | ||||
Ending balance: loans acquired with deteriorated credit quality | $ 332 | |||
Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Allowances for credit losses: | ||||
Ending balance: loans acquired with deteriorated credit quality | ||||
Notes Receivable, Net [Abstract] | ||||
Ending balance: loans acquired with deteriorated credit quality | ||||
Notes Receivable [Member] | ||||
Allowances for credit losses: | ||||
Ending balance: loans acquired with deteriorated credit quality | ||||
Ending balance: individually evaluated for impairment | ||||
Ending balance: collectively evaluated for impairment | ||||
Notes Receivable, Net [Abstract] | ||||
Ending balance | $ 332 | |||
Ending balance: individually evaluated for impairment | $ 332 | |||
Ending balance: collectively evaluated for impairment | ||||
Notes Receivable [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Allowances for credit losses: | ||||
Ending balance: loans acquired with deteriorated credit quality | ||||
Notes Receivable, Net [Abstract] | ||||
Ending balance: loans acquired with deteriorated credit quality | ||||
Finance Leases [Member] | ||||
Allowances for credit losses: | ||||
Ending balance: loans acquired with deteriorated credit quality | ||||
Ending balance: individually evaluated for impairment | ||||
Ending balance: collectively evaluated for impairment | ||||
Notes Receivable, Net [Abstract] | ||||
Ending balance | $ 6,217 | [1] | $ 8,807 | [2] |
Ending balance: individually evaluated for impairment | $ 6,217 | $ 8,807 | ||
Ending balance: collectively evaluated for impairment | ||||
Notes Receivable unamortized initial direct cost | $ 1 | $ 5 | ||
Finance Leases [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Allowances for credit losses: | ||||
Ending balance: loans acquired with deteriorated credit quality | ||||
Notes Receivable, Net [Abstract] | ||||
Ending balance: loans acquired with deteriorated credit quality | ||||
[1] | Includes $1 of unamortized initial direct costs | |||
[2] | Includes $5 of unamortized initial direct costs |
Allowance for Credit Losses (Fi
Allowance for Credit Losses (Financing Receivables by Credit Quality Indicator and by Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Finance Leases | $ 6,216 | $ 8,802 |
Notes Receivable | 332 | |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Finance Leases | $ 6,216 | 8,802 |
Notes Receivable | $ 332 | |
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 ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | ||
Current | $ 6,216 | $ 9,134 |
Total Financing Receivable | $ 6,216 | $ 9,134 |
Recorded Investment > 90 Days and Accruing | ||
31 To 60 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | ||
61 To 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | ||
Greater Than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | ||
Notes Receivable [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | ||
Current | $ 332 | |
Total Financing Receivable | $ 332 | |
Recorded Investment > 90 Days and Accruing | ||
Notes Receivable [Member] | 31 To 60 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | ||
Notes Receivable [Member] | 61 To 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | ||
Notes Receivable [Member] | Greater Than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | ||
Finance Leases [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | ||
Current | $ 6,216 | $ 8,802 |
Total Financing Receivable | $ 6,216 | $ 8,802 |
Recorded Investment > 90 Days and Accruing | ||
Finance Leases [Member] | 31 To 60 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | ||
Finance Leases [Member] | 61 To 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | ||
Finance Leases [Member] | Greater Than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due |
Investments in Equipment and 41
Investments in Equipment and Leases, Net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Average estimated residual value of assets on operating leases | 12.00% | 16.00% |
Impairment losses on equipment | $ 132 | $ 37 |
IDC amortization expense related to operating leases and direct financing leases | 6 | 10 |
Depreciation of operating lease assets | 899 | 1,469 |
Revenues from contingent rentals | $ 97 | $ 179 |
Minimum [Member] | ||
Financing leases, period for non accrual status | 90 days | |
Accounts receivable, period for non-accrual status | 90 days |
Investments in Equipment and 42
Investments in Equipment and Leases, Net (Investment in Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Leases Disclosure [Line Items] | ||
Balance December 31, 2014 | $ 15,256 | |
Reclassifications, Additions/Dispositions and Impairment Losses | (638) | |
Depreciation/ Amortization Expense or Amortization of Leases | (3,491) | |
Balance December 31, 2015 | 11,127 | |
Initial direct costs, accumulated amortization | 83 | $ 90 |
Operating Leases [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2014 | 6,196 | |
Reclassifications, Additions/Dispositions and Impairment Losses | (1,185) | |
Depreciation/ Amortization Expense or Amortization of Leases | (899) | |
Balance December 31, 2015 | 4,112 | |
Direct Financing Leases [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2014 | 8,802 | |
Depreciation/ Amortization Expense or Amortization of Leases | (2,586) | |
Balance December 31, 2015 | 6,216 | |
Assets Held-for-sale or Lease[Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2014 | 250 | |
Reclassifications, Additions/Dispositions and Impairment Losses | 547 | |
Balance December 31, 2015 | 797 | |
Initial Direct Cost [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2014 | 8 | |
Depreciation/ Amortization Expense or Amortization of Leases | (6) | |
Balance December 31, 2015 | $ 2 |
Investments in Equipment and 43
Investments in Equipment and Leases, Net (Property on Operating Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 25,602 | $ 31,635 |
Less accumulated depreciation | (21,490) | (25,439) |
Property on operating leases, net | $ 4,112 | 6,196 |
Additions, gross | ||
Additions, less accumulated depreciation | $ (899) | |
Additions, net | (899) | |
Reclassifications or dispositions, gross | (6,033) | |
Reclassifications or dispositions, less accumulated depreciation | 4,848 | |
Reclassifications or dispositions, net | (1,185) | |
Transportation, Rail [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 12,154 | 12,531 |
Additions, gross | ||
Reclassifications or dispositions, gross | $ (377) | |
Marine Vessels [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 9,700 | 11,200 |
Additions, gross | ||
Reclassifications or dispositions, gross | $ (1,500) | |
Transportation, Other [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 2,011 | 3,932 |
Additions, gross | ||
Reclassifications or dispositions, gross | $ (1,921) | |
Materials Handling [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 628 | 823 |
Additions, gross | ||
Reclassifications or dispositions, gross | $ (195) | |
Construction [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 565 | 565 |
Additions, gross | ||
Reclassifications or dispositions, gross | ||
Manufacturing [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 528 | 1,417 |
Additions, gross | ||
Reclassifications or dispositions, gross | $ (889) | |
Agriculture [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 1,151 | |
Additions, gross | ||
Reclassifications or dispositions, gross | $ (1,151) | |
Other [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 16 | $ 16 |
Additions, gross | ||
Reclassifications or dispositions, gross |
Investments in Equipment and 44
Investments in Equipment and Leases, Net (Components of Investment in Direct Financing Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments in Equipment and Leases, Net [Abstract] | ||
Total minimum lease payments receivable | $ 3,687 | $ 8,140 |
Estimated residual values of leased equipment (unguaranteed) | 3,543 | 3,543 |
Investment in direct financing leases | 7,230 | 11,683 |
Less unearned income | (1,014) | (2,881) |
Net investment in direct financing leases | $ 6,216 | $ 8,802 |
Investments in Equipment and 45
Investments in Equipment and Leases, Net (Future Minimum Lease Payments Receivable) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases | |
Year ending December 31, 2016 | $ 2,033 |
2,017 | 1,700 |
2,018 | 940 |
2,019 | 834 |
2,020 | 541 |
Operating leases, future minimum payments receivable | 6,048 |
Direct Financing Leases | |
Year ending December 31, 2016 | 3,686 |
2,017 | $ 1 |
2,018 | |
2,019 | |
2,020 | |
Capital leases, future minimum payments receivable | $ 3,687 |
Total | |
Year ending December 31, 2016 | 5,719 |
2,017 | 1,701 |
2,018 | 940 |
2,019 | 834 |
2,020 | 541 |
Operating and capital leases, future minimum payments receivable | $ 9,735 |
Investment in Equipment and L46
Investment in Equipment and Leases, Net (Schedule of Useful Lives of Assets) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum [Member] | Transportation, Rail [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful Lives of lease assets | 35 years |
Minimum [Member] | Mining [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful Lives of lease assets | 30 years |
Minimum [Member] | Marine Vessels [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful Lives of lease assets | 20 years |
Minimum [Member] | Manufacturing [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful Lives of lease assets | 10 years |
Minimum [Member] | Agriculture [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful Lives of lease assets | 7 years |
Minimum [Member] | Construction [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful Lives of lease assets | 7 years |
Minimum [Member] | Transportation, Other [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful Lives of lease assets | 7 years |
Minimum [Member] | Materials Handling [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful Lives of lease assets | 7 years |
Maximum [Member] | Transportation, Rail [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful Lives of lease assets | 40 years |
Maximum [Member] | Mining [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful Lives of lease assets | 40 years |
Maximum [Member] | Marine Vessels [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful Lives of lease assets | 30 years |
Maximum [Member] | Manufacturing [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful Lives of lease assets | 15 years |
Maximum [Member] | Agriculture [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful Lives of lease assets | 10 years |
Maximum [Member] | Construction [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful Lives of lease assets | 10 years |
Maximum [Member] | Transportation, Other [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful Lives of lease assets | 10 years |
Maximum [Member] | Materials Handling [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful Lives of lease assets | 10 years |
Related Party Transactions (Aff
Related Party Transactions (Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transactions [Abstract] | ||
Costs reimbursed to Managing Member and/or affiliates | $ 517 | $ 557 |
Asset management fees to Managing Member and/or affiliates | 296 | 471 |
Total expenses from transactions with related party | $ 813 | $ 1,028 |
Non-Recourse Debt (Narrative) (
Non-Recourse Debt (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Gross operating lease rentals and future payments on direct financing leases | $ 3.7 |
Carrying value of pledged assets | $ 6.2 |
Minimum [Member] | |
Fixed Interest rate on note | 6.58% |
Note maturity year | 2,016 |
Maximum [Member] | |
Fixed Interest rate on note | 6.66% |
Note maturity year | 2,017 |
Non-Recourse Debt (Future Minim
Non-Recourse Debt (Future Minimum Payments of Non-Recourse Debt) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Principal | |
Year ending December 31, 2016 | $ 3,743 |
2,017 | 178 |
Long-term debt, total | 3,921 |
Interest | |
Year ending December 31, 2016 | 133 |
2,017 | 1 |
Long-term debt interest, total | 134 |
Total | |
Year ending December 31, 2016 | 3,876 |
2,017 | 179 |
Long-term debt principal and interest, total | $ 4,055 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies [Abstract] | |
Commitments to purchase lease assets or fund new loans | $ 0 |
Members' Capital (Narrative) (D
Members' Capital (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Members Capital Account [Line Items] | |||
Members capital account, units issued | 12,055,016 | 12,055,016 | |
Members capital account, units outstanding | 12,055,016 | 12,055,016 | |
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] | |||
Members capital account, units outstanding | 12,055,016 | 12,055,016 | 12,055,016 |
Allocation of net income or net losses | 92.50% | ||
Managing Member [Member] | |||
Other Members Capital Account [Line Items] | |||
Members capital 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 ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Members' Capital [Abstract] | ||
Distributions declared | $ 4,822 | $ 5,425 |
Weighted average number of Units outstanding | 12,055,016 | 12,055,016 |
Weighted average distributions per Unit | $ 0.40 | $ 0.45 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Impairment losses on equipment | $ 132 | $ 37 |
Fair value of warrants | $ 125 |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Level 3 Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized loss on warrants, net recorded during the year | $ (125) | $ (52) |
Level 3 Estimated Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Balance at December 31, 2014 | 125 | |
Unrealized loss on warrants, net recorded during the year | $ (125) | |
Balance at December 31, 2015 | $ 125 |
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) $ in Thousands | Dec. 31, 2015USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired off-lease equipment | $ 300 |
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 | $ 300 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Valuation Techniques and Significant Unobservable Inputs Used) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Recurring [Member] | Warrants [Member] | Black-Scholes formulation [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Stock price | $ 2.01 | |
Exercise price | $ 2.01 | |
Time to Maturity (in years) | 15 days | |
Risk-free interest rate | 0.14% | |
Annualized volatility | 100.00% | |
Non-recurring [Member] | Off-lease Equipment [Member] | Market Approach [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair value inputs, third party agents' pricing quotes per equipment | $ 100,000 | |
Fair value inputs, third party agents' pricing quotes, total | $ 300,000 | |
Minimum [Member] | Recurring [Member] | Warrants [Member] | Black-Scholes formulation [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Stock price | $ 1.12 | |
Exercise price | $ 0.65 | |
Time to Maturity (in years) | 1 year 15 days | |
Risk-free interest rate | 0.25% | |
Annualized volatility | 16.01% | |
Maximum [Member] | Recurring [Member] | Warrants [Member] | Black-Scholes formulation [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Stock price | $ 4.48 | |
Exercise price | $ 2.01 | |
Time to Maturity (in years) | 5 years 6 months | |
Risk-free interest rate | 1.73% | |
Annualized volatility | 100.00% |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Cash and cash equivalents | $ 2,240 | $ 4,633 |
Notes receivable, net | 332 | |
Investment in securities | 5 | 5 |
Warrants | 125 | |
Financial liabilities: | ||
Non-recourse debt | 3,971 | 8,747 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 2,240 | 4,633 |
Notes receivable, net | 332 | |
Investment in securities | 5 | 5 |
Warrants | 125 | |
Financial liabilities: | ||
Non-recourse debt | 3,921 | 8,537 |
Estimated Fair Value | Level 1 Estimated Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | $ 2,240 | $ 4,633 |
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 | $ 332 | |
Investment in securities | $ 5 | 5 |
Warrants | 125 | |
Financial liabilities: | ||
Non-recourse debt | $ 3,971 | $ 8,747 |