Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | ATEL CAPITAL EQUIPMENT FUND X LLC | |
Entity Central Index Key | 1,186,258 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Units Outstanding | 13,971,486 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 3,772 | $ 8,680 |
Accounts receivable, net | 102 | 195 |
Prepaid expenses and other assets | 122 | 118 |
Investment in securities | 55 | 65 |
Investments in equipment and leases, net | 7,123 | 8,457 |
Total assets | 11,174 | 17,515 |
Accounts payable and accrued liabilities: | ||
Managing Member | 43 | 22 |
Other | 1,229 | 1,304 |
Deposits due lessees | 6 | 4 |
Non-recourse debt | 145 | 330 |
Unearned operating lease income | 75 | 63 |
Total liabilities | 1,498 | 1,723 |
Commitments and contingencies | ||
Members' capital: | ||
Managing Member | ||
Other Members | 9,676 | 15,792 |
Total Members' capital | 9,676 | 15,792 |
Total liabilities and Members' capital | $ 11,174 | $ 17,515 |
Statements of Income
Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Leasing and lending activities: | ||||
Operating leases | $ 676 | $ 427 | $ 1,933 | $ 2,657 |
Direct financing leases | 1 | 234 | 12 | 926 |
Gain on sales of lease assets | 481 | 464 | 807 | 664 |
Unrealized loss on fair value adjustment for warrants | (16) | |||
Deferred maintenance fees | 40 | 1,049 | ||
Other | 10 | 10 | 23 | 27 |
Total revenues | 1,168 | 1,175 | 2,775 | 5,307 |
Expenses: | ||||
Depreciation of operating lease assets | 246 | 283 | 768 | 879 |
Asset management fees to Managing Member and/or affiliates | 33 | 29 | 87 | 212 |
Costs reimbursed to Managing Member and/or affiliates | 130 | 132 | 428 | 387 |
Amortization of initial direct costs | 1 | 1 | 2 | |
Interest expense | 1 | 19 | 4 | 114 |
Railcar maintenance | (27) | 28 | 102 | 117 |
Other management fees | 7 | 7 | 21 | 22 |
Provision for credit losses | 11 | 4 | 26 | 3 |
Provision for losses on investment in securities | 10 | 10 | 9 | |
Professional fees | 16 | 19 | 129 | 128 |
Franchise fees and taxes | 42 | 188 | ||
Outside services | 25 | 15 | 98 | 69 |
Insurance | 10 | 9 | 29 | 28 |
Printing and photocopying | 9 | 6 | 24 | 13 |
Storage fees | 65 | 19 | 105 | 114 |
Other | 11 | 21 | 74 | 64 |
Total operating expenses | 589 | 592 | 2,094 | 2,161 |
Net income | 579 | 583 | 681 | 3,146 |
Net income (loss): | ||||
Managing Member | 510 | 283 | ||
Other Members | 579 | 583 | 171 | 2,863 |
Net income | $ 579 | $ 583 | $ 681 | $ 3,146 |
Net income per Limited Liability Company Unit (Other Members) | $ 0.04 | $ 0.04 | $ 0.01 | $ 0.20 |
Weighted average number of Units outstanding | 13,971,486 | 13,971,486 | 13,971,486 | 13,971,486 |
Statements of Changes in Member
Statements of Changes in Members' Capital - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Beginning Balance (in units) | 13,971,486 | |||
Beginning Balance | $ 15,792 | $ 15,900 | $ 15,900 | |
Distributions to Other Members | (6,287) | (3,493) | (3,493) | |
Distributions to Managing Member | (510) | (283) | ||
Net income | $ 579 | $ 681 | $ 3,146 | $ 3,668 |
Ending Balance (in units) | 13,971,486 | 13,971,486 | 13,971,486 | |
Ending Balance | $ 9,676 | $ 9,676 | $ 15,792 | |
Other Members [Member] | ||||
Beginning Balance (in units) | 13,971,486 | 13,971,486 | 13,971,486 | |
Beginning Balance | $ 15,792 | $ 15,900 | $ 15,900 | |
Distributions to Other Members | (6,287) | (3,493) | ||
Net income | $ 171 | $ 3,385 | ||
Ending Balance (in units) | 13,971,486 | 13,971,486 | 13,971,486 | |
Ending Balance | $ 9,676 | $ 9,676 | $ 15,792 | |
Managing Member [Member] | ||||
Distributions to Managing Member | (510) | (283) | ||
Net income | $ 510 | $ 283 |
Statements of Changes in Membe5
Statements of Changes in Members' Capital (Parenthetical) - $ / shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Statements of Changes in Members' Capital [Abstract] | |||
Weighted average distributions per Unit | $ 0.45 | $ 0.25 | $ 0.25 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities: | ||||
Net income | $ 579 | $ 583 | $ 681 | $ 3,146 |
Adjustments to reconcile net income to cash provided by operating activities: | ||||
Gain on sales of lease assets | (481) | (464) | (807) | (664) |
Depreciation of operating lease assets | 246 | 283 | 768 | 879 |
Amortization of initial direct costs | 1 | 1 | 2 | |
Provision for credit losses | 11 | 4 | 26 | 3 |
Provision for losses on investment in securities | 10 | 10 | 9 | |
Unrealized loss on fair value adjustment for warrants | 16 | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | 6 | 231 | 67 | 202 |
Prepaid expenses and other assets | (22) | (25) | (4) | (8) |
Accounts payable, Managing Member | 2 | 88 | 21 | (56) |
Accounts payable, other | (23) | 549 | (75) | 573 |
Accrued interest payable | (6) | (17) | ||
Deposits due lessees | 4 | 2 | 4 | |
Unearned operating lease income | (3) | (74) | 12 | 28 |
Net cash provided by operating activities | 325 | 1,174 | 702 | 4,117 |
Investing activities: | ||||
Proceeds from sales of lease assets | 637 | 3,263 | 1,367 | 4,533 |
Payments of initial direct costs | (9) | (1) | (9) | (1) |
Principal payments received on direct financing leases | 2 | 715 | 14 | 2,311 |
Net cash provided by investing activities | 630 | 3,977 | 1,372 | 6,843 |
Financing activities: | ||||
Repayments under non-recourse debt | (62) | (1,150) | (185) | (3,395) |
Net cash used in financing activities | (3,083) | (4,926) | (6,982) | (9,814) |
Net (decrease) increase in cash and cash equivalents | (2,128) | 225 | (4,908) | 1,146 |
Cash and cash equivalents at beginning of period | 5,900 | 4,951 | 8,680 | 4,030 |
Cash and cash equivalents at end of period | 3,772 | 5,176 | 3,772 | 5,176 |
Supplemental disclosures of cash flow information: | ||||
Cash paid during the period for interest | 1 | 25 | 4 | 131 |
Cash paid during the period for taxes | 161 | 86 | ||
Managing Member [Member] | ||||
Operating activities: | ||||
Net income | 510 | |||
Financing activities: | ||||
Distributions to Members | (227) | (283) | (510) | (481) |
Other Members [Member] | ||||
Operating activities: | ||||
Net income | 171 | |||
Financing activities: | ||||
Distributions to Members | $ (2,794) | $ (3,493) | $ (6,287) | $ (5,938) |
Organization and Limited Liabil
Organization and Limited Liability Company Matters | 9 Months Ended |
Sep. 30, 2017 | |
Organization and Limited Liability Company Matters [Abstract] | |
Organization and Limited Liability Company Matters | 1. Organization and Limited Liability Company matters: ATEL Capital Equipment Fund X, LLC (the “Company” or the “Fund”) was formed under the laws of the State of California on August 12, 2002 for the purpose of engaging in the sale of limited liability company investment units and acquiring equipment to engage in equipment leasing, lending and sales activities, primarily in the United States. The Managing Member or Manager of the Company is ATEL Financial Services, LLC (“AFS”), a California limited liability company. The Company may continue until December 31, 2022 . As of March 11, 2005, subscriptions for 14,059,136 Units ($ 140.6 million) had been received, of which 87,650 Units ($ 720 thousand) were subsequently rescinded or repurchased (net of distributions paid and allocated syndication costs, as applicable) by the Company through September 30, 2017. As of September 30, 2017, 13,971,486 Units remain issued and outstanding . The Company is governed by its Limited Liability Company Operating Agreement (“Operating Agreement”). On January 1, 2012, 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 5). The Company is required to maintain reasonable cash reserves for working capital, for the repurchase of Units and for contingencies. The repurchase of Units is solely at the discretion of AFS. These unaudited interim financial statements should be read in conjunction with the financial statements and notes thereto contained in the report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of significant accounting policies: Basis of presentation: The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results to be expected for the full year. Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying unaudited financial statements, the Managing Member has reviewed events that have occurred after September 30, 2017, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, or adjustments thereto. Use of estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and determination of the allowances for doubtful accounts. Segment reporting: The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States. The primary geographic region in which the Company sought leasing opportunities was North America. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the nine months ended September 30, 2017 and 2016, and long-lived tangible assets as of September 30, 2017 and December 31, 2016 (dollars in thousands): Nine Months Ended September 30, 2017 % of Total 2016 % of Total Revenue United States $ 2,729 98% $ 5,307 100% Canada 46 2% - 0% Total $ 2,775 100% $ 5,307 100% As of September 30, As of December 31, 2017 % of Total 2016 % of Total Long-lived assets United States $ 7,032 99% $ 8,419 100% Canada 91 1% 38 0% Total $ 7,123 100% $ 8,457 100% Accounts receivable Accounts receivable represent the amounts billed under operating and direct financing lease contracts which are currently due to the Company. Allowances for doubtful accounts are typically established based 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 are applied only against outstanding principal balances. Investment in securities: From time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements. 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. Based upon the Company’s review of its portfolio, fair value adjustments of $10 thousand and $0 were recorded during the three months ended September 30 , 2017 and 2016, and fair value adjustments of $10 thousand and $9 thousand were recorded during the nine months ended September 30, 2017 and 2016, respectively, to reduce the cost basis of certain impaired investment securities to zero . There were no investment securities sold nor disposed of during the three and nine months ended September 30, 2017 and 2016. 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. There were no unrealized gains or losses during the three and nine months ended September 30, 2017, and the three months ended September 30, 2016. During the nine months ended September 30, 2016, the Company recorded unrealized losses of $16 thousand on the fair valuation of its warrant holdings. At September 30, 2017 and December 31, 2016, the calculated fair values of the Company’s warrant portfolio were deemed nominal. There were no exercises of warrants, net or otherwise, during the three and nine months ended September 30, 2017 and 2016. Per Unit data: The Company issues only one class of Units, none of which are considered dilutive. Net income and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the period. Fair value: 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. 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. Recent accounting pronouncements: In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-15 — Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 addresses specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. Management is currently evaluating the standard and its impact on operations and financial reporting. The adoption of ASU 2016-15 by the Company is not expected to have a material effect on its financial statements. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. Management is currently evaluating the standard and expects the Update may potentially result in an increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new standard will require lessees to recognize lease assets and lease liabilities arising from operating leases with lease terms greater than 12 months in the statement of financial position. Lessor accounting per ASU 2016-02 is mostly unchanged from the previous lease accounting GAAP. Certain changes were made to the lessor accounting guidance in order to align the lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Similar to the previous guidance, lessors will classify leases as operating, direct financing, or sales-type. Lessors in operating leases will continue to recognize the underlying asset and recognize income on a straight-line basis. Lessors determine whether a lease is a sale of the underlying asset based on whether the lessee effectively obtains control of the underlying assets. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. While early adoption is permitted, the Company does not expect to elect that option. The Company expects to adopt the guidance in the first quarter 2019 using the modified retrospective method. Management is currently evaluating the impact of this standard on the financial statements and its operational and related disclosure requirements, including the impact on the Company’s current lease portfolio from a lessor perspective. Given the limited changes to lessor accounting, management does not expect material changes to recognition or measurement, but the Company is early in the implementation process and will continue to evaluate the impact. This adoption will primarily result in an increase in the assets and liabilities on the Company’s balance sheet. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The new standard provides guidance related to accounting for equity investments and financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (v) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management is currently evaluating the standard and its operational and related disclosure requirements. The Company’s implementation efforts include the identification of equity securities within the scope of the guidance, the evaluation of the measurement alternative available for equity securities without a readily determinable fair value, and the related impact to accounting policies, presentation and disclosures. In May 2014, the FASB issued Accounting Standards Update 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 with 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 expects to adopt the Standards Update. A preliminary evaluation of the impact of such adoption on the financial statements to the Fund indicates that such impact is non-material as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues. Management expects that accounting policies will not materially change since the principles of revenue recognition from the standard are largely consistent with existing guidance and current practices applied by the Company. |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2017 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses | 3. Allowance for credit losses: The Company’s allowance for credit losses totaled $28 thousand and $2 thousand at September 30, 2017 and December 31, 2016, respectively. All of such allowance were related to delinquent operating lease receivables. The Company had neither financing receivables in non-accrual status nor impaired financing receivables at September 30, 2017 and December 31, 2016. |
Investments in Equipment and Le
Investments in Equipment and Leases, Net | 9 Months Ended |
Sep. 30, 2017 | |
Investments in Equipment and Leases, Net [Abstract] | |
Investment in Equipment and Leases, Net | 4. Investment in equipment and leases, net: The Company’s investment in equipment and leases consists of the following (in thousands): Reclassifications, Depreciation Amortization Balance & Expense or Balance December 31, Additions / Amortization September 30, 2016 Dispositions of Leases 2017 Net investment in operating leases $ 5,319 $ 70 $ (768) $ 4,621 Net investment in direct financing leases 20 (6) (14) - Assets held for sale or lease, net 3,116 (624) - 2,492 Initial direct costs, net of accumulated amortization of $5 at September 30, 2017 and $4 at December 31, 2016 2 9 (1) 10 Total $ 8,457 $ (551) $ (783) $ 7,123 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, if any. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances. As a result of these reviews, management determined that no impairment losses existed during the three and nine months ended September 30, 2017 and 2016. The Company utilizes a straight line depreciation method for equipment in all of the categories currently in its portfolio of operating lease transactions. Depreciation expense on the Company’s equipment was $246 thousand and $283 thousand for the respective three months ended September 30, 2017 and 2016, and was $768 thousand and $879 thousand for the respective nine months ended September 30, 2017 and 2016. Initial direct costs amortization expense related to the Company’s operating and direct financing leases totaled $0 thousand and $1 for the three months ended September 30, 2017 and 2016. The Company reflected initial direct cost amortization of $1 thousand and $2 thousand for the nine months ended September 30, 2017 and 2016, respectively. All of the remaining property on lease was acquired during the years 2005 through 2011. Operating leases: Property on operating leases consists of the following (in thousands): Balance Balance December 31, Reclassifications or September 30, 2016 Additions Dispositions 2017 Transportation, rail $ 14,796 $ - $ (1,024) $ 13,772 Transportation, other 3,491 - - 3,491 Aircraft 3,026 - (1,038) 1,988 Construction - - 800 800 Manufacturing 624 - - 624 Petro/natural gas 470 - (470) - Materials handling 474 - (474) - Agriculture 193 - (193) - Other 1 - 876 877 23,075 - (1,523) 21,552 Less accumulated depreciation (17,756) (768) 1,593 (16,931) Total $ 5,319 $ (768) $ 70 $ 4,621 The average estimated residual value s for assets on operating leases w ere 23% and 22% of the assets’ original cost as of September 30, 2017 and December 31, 2016, respectively. There were no operating leases placed in non-accrual status as of the same periods. Direct financing leases: As of December 31, 2016, investment in direct financing leases generally consists of materials handling equipment. The components of the Company’s investment in direct financing leases as of December 31, 2016 are as follows (in thousands): December 31, 2016 Total minimum lease payments receivable $ 26 Estimated residual values of leased equipment (unguaranteed) 6 Investment in direct financing leases 32 Less unearned income (12) Net investment in direct financing leases $ 20 There were no direct financing leases placed in non-accrual status as of December 31, 2016. At September 30, 2017, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands): Operating Leases Three months ending December 31, 2017 $ 449 Year ending December 31, 2018 1,284 2019 567 2020 284 2021 75 2022 25 $ 2,684 The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of September 30, 2017, 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 Aircraft 20 - 30 Manufacturing 10 - 15 Construction 7 - 10 Transportation, other 7 - 10 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 5. Related party transactions: The terms of the Operating Agreement provide that AFS and/or affiliates are entitled to receive certain fees for equipment management and resale and for management of the Company. The Operating Agreement allows for the reimbursement of costs incurred by AFS in providing administrative services to the Company. Administrative services provided include Company accounting, finance/treasury, investor relations, legal counsel and lease and equipment documentation. AFS is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of equipment. The Company would be liable for certain future costs to be incurred by AFS to manage the administrative services provided to the Company. Each of ATEL Leasing Corporation (“ALC”) and AFS is a wholly-owned subsidiary of ATEL Capital Group and performs services for the Company. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; investor relations, communications 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 Fund’s 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 September 30, 2017, the Company has not exceeded the annual and/or cumulative limitations discussed above. During the three and nine months ended September 30, 2017 and 2016, AFS and/or affiliates earned fees and billed for reimbursements of costs and expenses pursuant to the Operating Agreement as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Costs reimbursed to Managing Member and/or affiliates $ 130 $ 132 $ 428 $ 387 Asset management fees to Managing Member and/or affiliates 33 29 87 212 $ 163 $ 161 $ 515 $ 599 |
Non-Recourse Debt
Non-Recourse Debt | 9 Months Ended |
Sep. 30, 2017 | |
Non-Recourse Debt [Abstract] | |
Non-Recourse Debt | 6. N on-recourse debt: At September 30, 2017 , non-recourse debt consists of a note payable to a financial institution. The note is due in monthly installments. Interest on the note is at a fixed rate of 1.97 %. The note is secured by assignments of lease payments and pledges of assets. At September 30, 2017 , gross operating lease rentals totaled approximately $ 146 thousand over the remaining lease terms and the carrying value of the pledged assets is $ 467 thousand . The note matures in April 2018 . The non-recourse debt does not contain any material financial covenants. The debt is secured by a specific lien granted by the Company to the non-recourse lenders on (and only on) the discounted lease transactions. The lenders have recourse only to the following collateral: the leased equipment; the related lease chattel paper; the lease receivables; and proceeds of the foregoing items. The non-recourse obligation is payable solely out of the respective specific security and the Company does not guarantee (nor is the Company otherwise contractually responsible for) the payment of the non-recourse debt as a general obligation or liability of the Company. Although the Company does not have any direct or general liability in connection with the non-recourse debt apart from the security granted, the Company is directly and generally liable and responsible for certain representations, warranties, and covenants made to the lenders, such as warranties as to genuineness of the transaction parties' signatures, as to the genuineness of the respective lease chattel paper or the transaction as a whole, or as to the Company's good title to or perfected interest in the secured collateral, as well as similar representations, warranties and covenants typically provided by non-recourse borrowers and customary in the equipment finance industry, and are viewed by such industry as being consistent with non-recourse discount financing obligations. Accordingly, as there are no financial covenants or ratios imposed on the Company in connection with the non-recourse debt, the Company has determined that there are no material covenants with respect to the non-recourse debt that warrant footnote disclosure. Future minimum payments of non-recourse debt are as follows (in thousands): Principal Interest Total Three months ending December 31, 2017 $ 62 $ 1 $ 63 Year ending December 31, 2018 83 - 83 $ 145 $ 1 $ 146 |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2017 | |
Commitments [Abstract] | |
Commitments | 7. Commitments: At September 30, 2017, there were no commitments to purchase lease assets or fund investments in notes receivable. |
Members' Capital
Members' Capital | 9 Months Ended |
Sep. 30, 2017 | |
Members' Capital [Abstract] | |
Members' Capital | 8. Members’ capital: Units issued and outstanding were 13,971,486 at both September 30, 2017 and December 31, 2016. The Company was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial Members ( 50 Units). The Company ceased offering Units on March 11, 2005. Distributions to the Other Members for the three and nine months ended September 30, 2017 and 2016 were as follows (in thousands except Units and per Unit data): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Distributions declared $ - $ - $ 6,287 $ 3,493 Weighted average number of Units outstanding 13,971,486 13,971,486 13,971,486 13,971,486 Weighted average distributions per Unit $ - $ - $ 0.45 $ 0.25 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 9. Fair value measurements: At September 30, 2017 and December 31, 2016, only the Company’s warrants were measured on a recurring basis. As of September 30, 2017 and December 31, 2016, the calculated fair values of the Fund’s warrant portfolio were deemed nominal. Such fair value adjustments utilized the following methodology: 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, time to maturity, and a risk free interest rate for the term(s) of the warrant exercise(s). The fair value of warrants that were accounted for on a recurring basis as of the three and nine months ended September 30, 2016 and classified as level 3 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2016 Fair value of warrants at beginning of period $ 13 $ 29 Unrealized loss on fair value adjustment for warrants - (16) Fair value of warrants at end of period $ 13 $ 13 Impaired investment securities (non-recurring) The Company’s investment securities are not registered for public sale and are carried at cost. The investment securities are adjusted for any impairment based upon factors which 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. During the respective three months ended September 30, 2017 and 2016, the Company recorded non-recurring fair value adjustments of $10 thousand and $0, and during the nine months ended September 30, 2017 and 2016, the Company recorded $10 thousand and $9 thousand, respectively, to the Company’s investment in securities to reduce the cost basis of certain impaired investment securities to zero. The 100% reduction in value was based on a market approach technique and uses inputs that reflect qualitative and quantitative information provided by the management of the investee. Such information indicated a significantly reduced value as evidenced by the purchase price of the investee as contemplated in its acquisition terms. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of the aforementioned impaired investment securities were classified within Level 3 of the valuation hierarchy. Impaired lease and/or off-lease equipment (non-recurring) During the three and nine months ended September 30, 2017 and 2016, the Company determined there were no impairment adjustments to lease equipment. When the Company deems certain lease equipment (assets) to be impaired, the Company will record a fair value adjustment to reduce the cost basis of the equipment. When fair value adjustments are implemented, they are on a non-recurring basis. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of impaired lease assets were classified within Level 3 of the valuation hierarchy as the data sources utilized for the valuation of such 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 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 and should be read in conjunction with the Company’s financial statements and related notes. 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. 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 no recognition for the fair value of the Company’s loan commitments is necessary because their terms are made on a market rate basis and require borrowers to be in compliance with the Company’s credit requirements at the time of funding. 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 a summary of the carrying value and fair value by level of financial instruments on the Company’s balance sheets at September 30, 2017 and December 31, 2016 (in thousands): Fair Value Measurements at September 30, 2017 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 3,772 $ 3,772 $ - $ - $ 3,772 Investment in securities 55 - - 55 55 - Financial liabilities: Non-recourse debt 145 - - 145 145 Fair Value Measurements at December 31, 2016 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 8,680 $ 8,680 $ - $ - $ 8,680 Investment in securities 65 - - 65 65 Financial liabilities: Non-recourse debt 330 - - 329 329 |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation: The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results to be expected for the full year. Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying unaudited financial statements, the Managing Member has reviewed events that have occurred after September 30, 2017, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, or adjustments thereto. |
Use of Estimates | Use of estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and determination of the allowances for doubtful accounts. |
Segment Reporting | Segment reporting: The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States. The primary geographic region in which the Company sought leasing opportunities was North America. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the nine months ended September 30, 2017 and 2016, and long-lived tangible assets as of September 30, 2017 and December 31, 2016 (dollars in thousands): Nine Months Ended September 30, 2017 % of Total 2016 % of Total Revenue United States $ 2,729 98% $ 5,307 100% Canada 46 2% - 0% Total $ 2,775 100% $ 5,307 100% As of September 30, As of December 31, 2017 % of Total 2016 % of Total Long-lived assets United States $ 7,032 99% $ 8,419 100% Canada 91 1% 38 0% Total $ 7,123 100% $ 8,457 100% |
Accounts Receivable | Accounts receivable Accounts receivable represent the amounts billed under operating and direct financing lease contracts which are currently due to the Company. Allowances for doubtful accounts are typically established based 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 are applied only against outstanding principal balances. |
Investment in Securities | Investment in securities: From time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements. 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. Based upon the Company’s review of its portfolio, fair value adjustments of $10 thousand and $0 were recorded during the three months ended September 30 , 2017 and 2016, and fair value adjustments of $10 thousand and $9 thousand were recorded during the nine months ended September 30, 2017 and 2016, respectively, to reduce the cost basis of certain impaired investment securities to zero . There were no investment securities sold nor disposed of during the three and nine months ended September 30, 2017 and 2016. 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. There were no unrealized gains or losses during the three and nine months ended September 30, 2017, and the three months ended September 30, 2016. During the nine months ended September 30, 2016, the Company recorded unrealized losses of $16 thousand on the fair valuation of its warrant holdings. At September 30, 2017 and December 31, 2016, the calculated fair values of the Company’s warrant portfolio were deemed nominal. There were no exercises of warrants, net or otherwise, during the three and nine months ended September 30, 2017 and 2016. |
Per Unit Data | Per Unit data: The Company issues only one class of Units, none of which are considered dilutive. Net income and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the period. |
Fair Value | Fair value: 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. 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. |
Recent Accounting Pronouncements | Recent accounting pronouncements: In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-15 — Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 addresses specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. Management is currently evaluating the standard and its impact on operations and financial reporting. The adoption of ASU 2016-15 by the Company is not expected to have a material effect on its financial statements. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. Management is currently evaluating the standard and expects the Update may potentially result in an increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new standard will require lessees to recognize lease assets and lease liabilities arising from operating leases with lease terms greater than 12 months in the statement of financial position. Lessor accounting per ASU 2016-02 is mostly unchanged from the previous lease accounting GAAP. Certain changes were made to the lessor accounting guidance in order to align the lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Similar to the previous guidance, lessors will classify leases as operating, direct financing, or sales-type. Lessors in operating leases will continue to recognize the underlying asset and recognize income on a straight-line basis. Lessors determine whether a lease is a sale of the underlying asset based on whether the lessee effectively obtains control of the underlying assets. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. While early adoption is permitted, the Company does not expect to elect that option. The Company expects to adopt the guidance in the first quarter 2019 using the modified retrospective method. Management is currently evaluating the impact of this standard on the financial statements and its operational and related disclosure requirements, including the impact on the Company’s current lease portfolio from a lessor perspective. Given the limited changes to lessor accounting, management does not expect material changes to recognition or measurement, but the Company is early in the implementation process and will continue to evaluate the impact. This adoption will primarily result in an increase in the assets and liabilities on the Company’s balance sheet. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The new standard provides guidance related to accounting for equity investments and financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (v) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management is currently evaluating the standard and its operational and related disclosure requirements. The Company’s implementation efforts include the identification of equity securities within the scope of the guidance, the evaluation of the measurement alternative available for equity securities without a readily determinable fair value, and the related impact to accounting policies, presentation and disclosures. In May 2014, the FASB issued Accounting Standards Update 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 with 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 expects to adopt the Standards Update. A preliminary evaluation of the impact of such adoption on the financial statements to the Fund indicates that such impact is non-material as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues. Management expects that accounting policies will not materially change since the principles of revenue recognition from the standard are largely consistent with existing guidance and current practices applied by the Company. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 nine months ended September 30, 2017 and 2016, and long-lived tangible assets as of September 30, 2017 and December 31, 2016 (dollars in thousands): Nine Months Ended September 30, 2017 % of Total 2016 % of Total Revenue United States $ 2,729 98% $ 5,307 100% Canada 46 2% - 0% Total $ 2,775 100% $ 5,307 100% As of September 30, As of December 31, 2017 % of Total 2016 % of Total Long-lived assets United States $ 7,032 99% $ 8,419 100% Canada 91 1% 38 0% Total $ 7,123 100% $ 8,457 100% |
Investment in Equipment and Lea
Investment in Equipment and Leases, Net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments in Equipment and Leases, Net [Abstract] | |
Investment in Leases | The Company’s investment in equipment and leases consists of the following (in thousands): Reclassifications, Depreciation Amortization Balance & Expense or Balance December 31, Additions / Amortization September 30, 2016 Dispositions of Leases 2017 Net investment in operating leases $ 5,319 $ 70 $ (768) $ 4,621 Net investment in direct financing leases 20 (6) (14) - Assets held for sale or lease, net 3,116 (624) - 2,492 Initial direct costs, net of accumulated amortization of $5 at September 30, 2017 and $4 at December 31, 2016 2 9 (1) 10 Total $ 8,457 $ (551) $ (783) $ 7,123 |
Property on Operating Leases | Property on operating leases consists of the following (in thousands): Balance Balance December 31, Reclassifications or September 30, 2016 Additions Dispositions 2017 Transportation, rail $ 14,796 $ - $ (1,024) $ 13,772 Transportation, other 3,491 - - 3,491 Aircraft 3,026 - (1,038) 1,988 Construction - - 800 800 Manufacturing 624 - - 624 Petro/natural gas 470 - (470) - Materials handling 474 - (474) - Agriculture 193 - (193) - Other 1 - 876 877 23,075 - (1,523) 21,552 Less accumulated depreciation (17,756) (768) 1,593 (16,931) Total $ 5,319 $ (768) $ 70 $ 4,621 |
Components of Company's Investment in Direct Financing Leases | The components of the Company’s investment in direct financing leases as of December 31, 2016 are as follows (in thousands): December 31, 2016 Total minimum lease payments receivable $ 26 Estimated residual values of leased equipment (unguaranteed) 6 Investment in direct financing leases 32 Less unearned income (12) Net investment in direct financing leases $ 20 |
Future Minimum Lease Payments Receivable | At September 30, 2017, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands): Operating Leases Three months ending December 31, 2017 $ 449 Year ending December 31, 2018 1,284 2019 567 2020 284 2021 75 2022 25 $ 2,684 |
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 September 30, 2017, 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 Aircraft 20 - 30 Manufacturing 10 - 15 Construction 7 - 10 Transportation, other 7 - 10 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
AFS and /or Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement | During the three and nine months ended September 30, 2017 and 2016, AFS and/or affiliates earned fees and billed for reimbursements of costs and expenses pursuant to the Operating Agreement as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Costs reimbursed to Managing Member and/or affiliates $ 130 $ 132 $ 428 $ 387 Asset management fees to Managing Member and/or affiliates 33 29 87 212 $ 163 $ 161 $ 515 $ 599 |
Non-Recourse Debt (Tables)
Non-Recourse Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 Three months ending December 31, 2017 $ 62 $ 1 $ 63 Year ending December 31, 2018 83 - 83 $ 145 $ 1 $ 146 |
Members' Capital (Tables)
Members' Capital (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Members' Capital [Abstract] | |
Distributions to Other Members | Distributions to the Other Members for the three and nine months ended September 30, 2017 and 2016 were as follows (in thousands except Units and per Unit data): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Distributions declared $ - $ - $ 6,287 $ 3,493 Weighted average number of Units outstanding 13,971,486 13,971,486 13,971,486 13,971,486 Weighted average distributions per Unit $ - $ - $ 0.45 $ 0.25 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value of Warrants that were Accounted for on a Recurring Basis and Classified as Level 3 Assets | The fair value of warrants that were accounted for on a recurring basis as of the three and nine months ended September 30, 2016 and classified as level 3 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2016 Fair value of warrants at beginning of period $ 13 $ 29 Unrealized loss on fair value adjustment for warrants - (16) Fair value of warrants at end of period $ 13 $ 13 |
Estimated Fair Values of Financial Instruments | The following tables present a summary of the carrying value and fair value by level of financial instruments on the Company’s balance sheets at September 30, 2017 and December 31, 2016 (in thousands): Fair Value Measurements at September 30, 2017 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 3,772 $ 3,772 $ - $ - $ 3,772 Investment in securities 55 - - 55 55 - Financial liabilities: Non-recourse debt 145 - - 145 145 Fair Value Measurements at December 31, 2016 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 8,680 $ 8,680 $ - $ - $ 8,680 Investment in securities 65 - - 65 65 Financial liabilities: Non-recourse debt 330 - - 329 329 |
Organization and Limited Liab23
Organization and Limited Liability Company Matters (Narrative) (Details) - USD ($) $ in Thousands | Mar. 11, 2005 | Sep. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Organization and Limited Liability Company Matters [Abstract] | ||||
Partnership termination date | Dec. 31, 2022 | |||
Sale of Limited Liability Company Units, number of Units | 14,059,136 | |||
Proceeds from sale of Limited Liability Company Units | $ 140,600 | |||
Repurchase of Units, number of Units | 87,650 | |||
Repurchase of Units, value | $ 720 | |||
Members capital account, Units issued | 13,971,486 | 13,971,486 | ||
Members capital account, Units outstanding | 13,971,486 | 13,971,486 | 13,971,486 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | |
Sales or dispositions of investment in securities | $ 0 | $ 0 | $ 0 | $ 0 |
Number of operating segments | segment | 1 | |||
Number of reportable segments | segment | 1 | |||
Fair value adjustment in investment securities | 10 | $ 10 | 9 | |
Unrealized loss on the fair valuation of warrants | (16) | |||
Gain on net exercise of warrants | $ 0 | $ 0 | $ 0 | $ 0 |
Minimum [Member] | ||||
Accounts receivable, period for non accrual status | 90 days | |||
Maximum [Member] | ||||
Accounts receivable, period of review for impairment | 90 days |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue and Long-Lived Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 1,168 | $ 1,175 | $ 2,775 | $ 5,307 | |
Percentage of total revenue | 100.00% | 100.00% | |||
Long-lived assets | $ 7,123 | $ 7,123 | $ 8,457 | ||
Percentage of long lived assets | 100.00% | 100.00% | 100.00% | ||
United States [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 2,729 | $ 5,307 | |||
Percentage of total revenue | 98.00% | 100.00% | |||
Long-lived assets | $ 7,032 | $ 7,032 | $ 8,419 | ||
Percentage of long lived assets | 99.00% | 99.00% | 100.00% | ||
Canada [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 46 | ||||
Percentage of total revenue | 2.00% | 0.00% | |||
Long-lived assets | $ 91 | $ 91 | $ 38 | ||
Percentage of long lived assets | 1.00% | 1.00% | 0.00% |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Allowance for credit losses | $ 28 | $ 2 |
Minimum [Member] | ||
Accounts receivable, period for non accrual status | 90 days | |
Maximum [Member] | ||
Accounts receivable, period of review for impairment | 90 days |
Investment in Equipment and L27
Investment in Equipment and Leases, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Investments in Equipment and Leases, Net [Abstract] | |||||
Amortization of initial direct costs | $ 1 | $ 1 | $ 2 | ||
Impairment losses on equipment | $ 0 | 0 | 0 | 0 | |
Depreciation of operating lease assets | $ 246 | $ 283 | $ 768 | $ 879 | |
Average estimated residual value of assets on operating leases | 23.00% | 23.00% | 22.00% |
Investment in Equipment and L28
Investment in Equipment and Leases, Net (Investment in Leases) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Leases Disclosure [Line Items] | ||
Balance December 31, 2016 | $ 8,457 | |
Reclassifications, Additions / Dispositions | (551) | |
Depreciation/ Amortization Expense or Amortization of Leases | (783) | |
Balance September 30, 2017 | 7,123 | |
Initial direct costs, accumulated amortization | 5 | $ 4 |
Operating Leases [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2016 | 5,319 | |
Reclassifications, Additions / Dispositions | 70 | |
Depreciation/ Amortization Expense or Amortization of Leases | (768) | |
Balance September 30, 2017 | 4,621 | |
Direct Financing Leases [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2016 | 20 | |
Reclassifications, Additions / Dispositions | (6) | |
Depreciation/ Amortization Expense or Amortization of Leases | (14) | |
Asset Held for Sale or Lease [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2016 | 3,116 | |
Reclassifications, Additions / Dispositions | (624) | |
Balance September 30, 2017 | 2,492 | |
Initial Direct Cost [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2016 | 2 | |
Reclassifications, Additions / Dispositions | 9 | |
Depreciation/ Amortization Expense or Amortization of Leases | (1) | |
Balance September 30, 2017 | $ 10 |
Investments in Equipment and 29
Investments in Equipment and Leases, Net (Property on Operating Leases) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 21,552 | $ 23,075 |
Less accumulated depreciation | (16,931) | (17,756) |
Property on operating leases, net | 4,621 | 5,319 |
Additions, gross | ||
Additions, less accumulated depreciation | (768) | |
Additions, net | (768) | |
Reclassifications or dispositions, gross | (1,523) | |
Reclassifications or dispositions, less accumulated depreciation | 1,593 | |
Reclassifications or dispositions, net | 70 | |
Transportation, Rail [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 13,772 | 14,796 |
Additions, gross | ||
Reclassifications or dispositions, gross | (1,024) | |
Transportation, Other [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 3,491 | 3,491 |
Additions, gross | ||
Reclassifications or dispositions, gross | ||
Aircraft [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 1,988 | 3,026 |
Additions, gross | ||
Reclassifications or dispositions, gross | (1,038) | |
Construction [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 800 | |
Additions, gross | ||
Reclassifications or dispositions, gross | 800 | |
Manufacturing [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 624 | 624 |
Additions, gross | ||
Reclassifications or dispositions, gross | ||
Petro/Natural Gas [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 470 | |
Additions, gross | ||
Reclassifications or dispositions, gross | (470) | |
Materials Handling [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 474 | |
Additions, gross | ||
Reclassifications or dispositions, gross | (474) | |
Agriculture [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 193 | |
Additions, gross | ||
Reclassifications or dispositions, gross | (193) | |
Other [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 877 | $ 1 |
Additions, gross | ||
Reclassifications or dispositions, gross | $ 876 |
Investment in Equipment and L30
Investment in Equipment and Leases, Net (Components of Company's Investment in Direct Financing Leases) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Investments in Equipment and Leases, Net [Abstract] | |
Total minimum lease payments receivable | $ 26 |
Estimated residual values of leased equipment (unguaranteed) | 6 |
Investment in direct financing leases | 32 |
Less unearned income | (12) |
Net investment in direct financing leases | $ 20 |
Investment in Equipment and L31
Investment in Equipment and Leases, Net (Future Minimum Lease Payments Receivable) (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Operating Leases | |
Three months ending December 31, 2017 | $ 449 |
Year ending December 31, 2018 | 1,284 |
2,019 | 567 |
2,020 | 284 |
2,021 | 75 |
2,022 | 25 |
Operating leases, future minimum payments receivable, total | $ 2,684 |
Investment in Equipment and L32
Investment in Equipment and Leases, Net (Schedule of Useful Lives of Assets) (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Minimum [Member] | Transportation, Rail [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 35 years |
Minimum [Member] | Aircraft [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] | 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 |
Maximum [Member] | Transportation, Rail [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 40 years |
Maximum [Member] | Aircraft [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] | 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 |
Related Party Transactions (AFS
Related Party Transactions (AFS and/or Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Related Party Transactions [Abstract] | ||||
Costs reimbursed to Managing Member and/or affiliates | $ 130 | $ 132 | $ 428 | $ 387 |
Asset management fees to Managing Member and/or affiliates | 33 | 29 | 87 | 212 |
Total expenses from transactions with related party | $ 163 | $ 161 | $ 515 | $ 599 |
Non-Recourse Debt (Narrative) (
Non-Recourse Debt (Narrative) (Details) - Non-Recourse Debt [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |
Fixed interest rate on note | 1.97% |
Gross operating lease rentals and future payments on direct financing leases | $ 146 |
Carrying value of pledged assets | $ 467 |
Note maturity year, description | The note matures in April 2018 |
Non-Recourse Debt (Future Minim
Non-Recourse Debt (Future Minimum Payments of Non-Recourse Debt) (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Principal | |
Three months ending December 31, 2017 | $ 62 |
Year ending December 31, 2018 | 83 |
Long-term debt, total | 145 |
Interest | |
Three months ending December 31, 2017 | 1 |
Year ending December 31, 2018 | |
Long-term debt interest, total | 1 |
Total | |
Three months ending December 31, 2017 | 63 |
Year ending December 31, 2018 | 83 |
Long-term debt principal and interest, total | $ 146 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Commitments [Abstract] | |
Commitments to purchase lease assets or fund investments in notes receivable | $ 0 |
Members' Capital (Narrative) (D
Members' Capital (Narrative) (Details) - shares | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Other Members Capital Account [Line Items] | |||
Members capital account, Units issued | 13,971,486 | ||
Members capital account, Units outstanding | 13,971,486 | 13,971,486 | |
Other Members capital account, Units authorized | 15,000,000 | 15,000,000 | |
Other Members [Member] | |||
Other Members Capital Account [Line Items] | |||
Members capital account, Units issued | 13,971,486 | ||
Members capital account, Units outstanding | 13,971,486 | 13,971,486 | 13,971,486 |
Managing Member [Member] | |||
Other Members Capital Account [Line Items] | |||
Managing members account, Units issued | 50 | 50 |
Members' Capital (Distributions
Members' Capital (Distributions to Other Members) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Members' Capital [Abstract] | |||||
Distributions declared | $ 6,287 | $ 3,493 | $ 3,493 | ||
Weighted average number of Units outstanding | 13,971,486 | 13,971,486 | 13,971,486 | 13,971,486 | |
Weighted average distributions per Unit | $ 0.45 | $ 0.25 | $ 0.25 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value Measurements [Abstract] | ||||
Fair value adjustment in investment securities | $ 10 | $ 10 | $ 9 | |
Impairment losses on equipment | $ 0 | $ 0 | $ 0 | $ 0 |
Impaired investment security, percentage of reduction in value | 100.00% |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Warrants that were Accounted for on a Recurring Basis and Classified as Level 3 Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Fair Value Measurements [Abstract] | ||
Fair value of warrants at beginning of period | $ 13 | $ 29 |
Unrealized loss on the fair valuation of warrants | (16) | |
Fair value of warrants at end of period | $ 13 | $ 13 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Carrying Amount [Member] | ||
Financial assets: | ||
Cash and cash equivalents | $ 3,772 | $ 8,680 |
Investment in securities | 55 | 65 |
Financial liabilities: | ||
Non-recourse debt | 145 | 330 |
Estimated Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 3,772 | 8,680 |
Investment in securities | 55 | 65 |
Financial liabilities: | ||
Non-recourse debt | 145 | 329 |
Estimated Fair Value [Member] | Level 1 Estimated Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 3,772 | 8,680 |
Investment in securities | ||
Financial liabilities: | ||
Non-recourse debt | ||
Estimated Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial assets: | ||
Cash and cash equivalents | ||
Investment in securities | ||
Financial liabilities: | ||
Non-recourse debt | ||
Estimated Fair Value [Member] | Level 3 Estimated Fair Value [Member] | ||
Financial assets: | ||
Investment in securities | 55 | 65 |
Financial liabilities: | ||
Non-recourse debt | $ 145 | $ 329 |