Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'ATEL CAPITAL EQUIPMENT FUND XI, LLC | ' |
Entity Central Index Key | '0001297667 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Units Outstanding | ' | 5,209,307 |
Balance_Sheets
Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $725 | $1,502 |
Accounts receivable, net of allowance for doubtful accounts of $3 as of September 30, 2013 and $6 as of December 31, 2012 | 239 | 179 |
Notes receivable, net of unearned interest income of $68 and allowance for credit losses of $10 at September 30, 2013 and net of unearned interest income of $110 and allowance for credit losses of $10 at December 31, 2012 | 580 | 759 |
Investment in securities | 219 | 219 |
Investments in equipment and leases, net of accumulated depreciation of $19,073 as of September 30, 2013 and $22,758 as of December 31, 2012 | 8,591 | 11,245 |
Prepaid expenses and other assets | 33 | 32 |
Total assets | 10,387 | 13,936 |
Accounts payable and accrued liabilities: | ' | ' |
Managing Member | 41 | 155 |
Accrued distributions to Other Members | ' | 551 |
Other | 186 | 404 |
Non-recourse debt | 2,382 | 3,651 |
Unearned operating lease income | 204 | 162 |
Total liabilities | 2,813 | 4,923 |
Commitments and contingencies | ' | ' |
Members' capital: | ' | ' |
Managing Member | ' | ' |
Other Members | 7,574 | 9,013 |
Total Members' capital | 7,574 | 9,013 |
Total liabilities and Members' capital | $10,387 | $13,936 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Balance Sheets [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $3 | $6 |
Notes receivable, unearned interest income | 68 | 110 |
Notes receivable, allowance for credit losses | 10 | 10 |
Investments in equipment and leases, accumulated depreciation | $19,073 | $22,758 |
Statements_of_Income
Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Leasing and lending activities: | ' | ' | ' | ' |
Operating leases | $913 | $1,353 | $3,162 | $4,424 |
Direct financing leases | 18 | 38 | 66 | 83 |
Interest on notes receivable | 13 | 19 | 42 | 60 |
Gain on sales of lease assets and early termination of notes | 98 | 75 | 194 | 275 |
Gain on sales or dispositions of securities | ' | ' | 3 | 1 |
Unrealized gain on securities | ' | ' | ' | 59 |
Other | 53 | 34 | 139 | 71 |
Total revenues | 1,095 | 1,519 | 3,606 | 4,973 |
Expenses: | ' | ' | ' | ' |
Depreciation of operating lease assets | 441 | 701 | 1,647 | 2,297 |
Asset management fees to Managing Member and/or affiliates | 51 | 79 | 181 | 251 |
Acquisition expense | ' | 30 | ' | 42 |
Cost reimbursements to Managing Member and/or affiliates | 81 | 96 | 242 | 312 |
Provision (reversal of provision) for credit losses | 2 | 11 | -3 | -38 |
Impairment losses on equipment | 39 | 221 | 52 | 255 |
Provision for losses on investment in securities | ' | ' | ' | 32 |
Amortization of initial direct costs | 5 | 4 | 15 | 17 |
Interest expense | 35 | 57 | 120 | 188 |
Professional fees | 8 | 16 | 61 | 81 |
Outside services | 8 | 8 | 28 | 40 |
Other | 24 | 31 | 97 | 133 |
Total operating expenses | 694 | 1,254 | 2,440 | 3,610 |
Other loss, net | ' | -22 | -1 | -21 |
Net income | 401 | 243 | 1,165 | 1,342 |
Net income: | ' | ' | ' | ' |
Managing Member | ' | 98 | 195 | 293 |
Other Members | 401 | 145 | 970 | 1,049 |
Net income | $401 | $243 | $1,165 | $1,342 |
Net income per Limited Liability Company Unit (Other Members) | $0.08 | $0.03 | $0.19 | $0.20 |
Weighted average number of Units outstanding | 5,209,307 | 5,209,307 | 5,209,307 | 5,209,307 |
Statements_of_Changes_in_Membe
Statements of Changes in Members' Capital (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Beginning Balance | ' | $9,013 | $12,585 | $12,585 |
Distributions to Other Members | ' | -2,409 | -3,614 | -4,819 |
Distributions to Managing Member | ' | -195 | ' | -391 |
Net income | 401 | 1,165 | 1,342 | 1,638 |
Ending Balance | 7,574 | 7,574 | ' | 9,013 |
Other Members [Member] | ' | ' | ' | ' |
Beginning Balance (in units) | ' | 5,209,307 | 5,209,307 | 5,209,307 |
Beginning Balance | ' | 9,013 | 12,585 | 12,585 |
Distributions to Other Members | ' | -2,409 | ' | -4,819 |
Net income | ' | 970 | ' | 1,247 |
Ending Balance (in units) | 5,209,307 | 5,209,307 | ' | 5,209,307 |
Ending Balance | 7,574 | 7,574 | ' | 9,013 |
Managing Member [Member] | ' | ' | ' | ' |
Distributions to Managing Member | ' | -195 | ' | -391 |
Net income | ' | $195 | ' | $391 |
Statements_of_Changes_in_Membe1
Statements of Changes in Members' Capital (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Statements of Changes in Members' Capital [Abstract] | ' | ' | ' | ' |
Distributions to Other Members, per unit | $0.23 | $0.46 | $0.69 | $0.93 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities: | ' | ' | ' | ' |
Net income | $401 | $243 | $1,165 | $1,342 |
Adjustment to reconcile net income to cash provided by operating activities: | ' | ' | ' | ' |
Gain on sales of lease assets and early termination of notes | -98 | -75 | -194 | -275 |
Depreciation of operating lease assets | 441 | 701 | 1,647 | 2,297 |
Amortization of initial direct costs | 5 | 4 | 15 | 17 |
Impairment losses on equipment | 39 | 221 | 52 | 255 |
Provision (reversal of provision) for credit losses | 2 | 11 | -3 | -38 |
Provision for losses on investment in securities | ' | ' | ' | 32 |
Gain on sales or dispositions of securities | ' | ' | -3 | -1 |
Unrealized gain on securities | ' | ' | ' | -59 |
Changes in operating assets and liabilities: | ' | ' | ' | ' |
Accounts receivable | -56 | -62 | -57 | 251 |
Prepaid expenses and other assets | -7 | 31 | -1 | -34 |
Accounts payable, Managing Member | 12 | 20 | -69 | -41 |
Accounts payable, other | -2 | -89 | -218 | 28 |
Unearned operating lease income | 146 | -93 | 42 | -60 |
Net cash provided by operating activities | 883 | 912 | 2,376 | 3,714 |
Investing activities: | ' | ' | ' | ' |
Purchase of securities | ' | ' | -8 | ' |
Proceeds from sales of lease assets and early termination of notes | 277 | 423 | 999 | 1,350 |
Payments of initial direct costs | ' | -40 | ' | -40 |
Proceeds from sales or dispositions of securities | ' | ' | 11 | 1 |
Principal payments received on direct financing leases | 37 | 57 | 135 | 143 |
Principal payments received on notes receivable | 61 | 87 | 179 | 246 |
Net cash provided by investing activities | 375 | 527 | 1,316 | 1,700 |
Financing activities: | ' | ' | ' | ' |
Repayments under non-recourse debt | -425 | -445 | -1,269 | -1,442 |
Net cash used in financing activities | -1,021 | -1,748 | -4,469 | -5,349 |
Net increase (decrease) in cash and cash equivalents | 237 | -309 | -777 | 65 |
Cash and cash equivalents at beginning of period | 488 | 1,790 | 1,502 | 1,416 |
Cash and cash equivalents at end of period | 725 | 1,481 | 725 | 1,481 |
Supplemental disclosures of cash flow information: | ' | ' | ' | ' |
Cash paid during the period for interest | 36 | 64 | 125 | 220 |
Cash paid during the period for taxes | ' | 4 | 32 | 49 |
Schedule of non-cash transactions: | ' | ' | ' | ' |
Securities acquired through conversion of warrants | ' | ' | ' | 59 |
Other Members [Member] | ' | ' | ' | ' |
Financing activities: | ' | ' | ' | ' |
Distributions to Members | -551 | -1,205 | -2,960 | -3,614 |
Schedule of non-cash transactions: | ' | ' | ' | ' |
Distributions payable at period-end | ' | 551 | ' | 551 |
Managing Member [Member] | ' | ' | ' | ' |
Financing activities: | ' | ' | ' | ' |
Distributions to Members | -45 | -98 | -240 | -293 |
Schedule of non-cash transactions: | ' | ' | ' | ' |
Distributions payable at period-end | ' | $45 | ' | $45 |
Organization_and_Limited_Liabi
Organization and Limited Liability Company Matters | 9 Months Ended |
Sep. 30, 2013 | |
Organization And Limited Liability Company Matters [Abstract] | ' |
Organization and Limited Liability Company Matters | ' |
1. Organization and Limited Liability Company matters: | |
ATEL Capital Equipment Fund XI, LLC (the “Company” or the “Fund”) was formed under the laws of the State of California on June 25, 2004. The Company was formed for the purpose of acquiring equipment to engage in equipment leasing, lending and sales activities. Also, from time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements. 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, 2025. Each Member’s personal liability for obligations of the Company generally will be limited to the amount of their respective contributions and rights to undistributed profits and assets of the Company. | |
The Company conducted a public offering of 15,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. On May 31, 2005, subscriptions for the minimum number of Units (120,000, representing $1.2 million) had been received 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 July 13, 2005, the Company had received subscriptions for 958,274 Units ($9.6 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. The Company terminated sales of Units effective April 30, 2006. Life-to-date net contributions through September 30, 2013 totaled $52.2 million, consisting of approximately $52.8 million in gross contributions from Other Members purchasing Units under the public offering less rescissions and repurchases (net of distributions paid and allocated syndication costs, as applicable) of $636 thousand. As of September 30, 2013, 5,209,307 Units were issued and outstanding. | |
The Company’s principal objectives are to invest in a diversified portfolio of equipment that (i) preserves, protects and returns the Company’s invested capital; (ii) generates regular distributions to the Members of cash from operations and cash from sales or refinancing, with any balance remaining after certain minimum distributions to be used to purchase additional equipment during the reinvestment period (“Reinvestment Period”) (defined as six full years following the year the offering was terminated), which ended December 31, 2012, and (iii) provides additional distributions following the Reinvestment Period and until all equipment has been sold. The Company is governed by its Limited Liability Company Operating Agreement (“Operating Agreement”), as amended. On January 1, 2013, 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 for services rendered and reimbursements for costs incurred on behalf of the Company (See Note 6). The Company is required to maintain reasonable cash reserves for working capital, the repurchase of Units and contingencies. The repurchase of Units is solely at the discretion of AFS. | |
The Company’s 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, 2012, filed with the Securities and Exchange Commission. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
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, 2013 are not necessarily indicative of the results to be expected for the full year. | ||||||||||||
2. Summary of significant accounting policies (continued): | ||||||||||||
Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations. | ||||||||||||
Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. | ||||||||||||
In preparing the accompanying unaudited financial statements, the Managing Member has reviewed events that have occurred after September 30, 2013 up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements, or adjustments thereto. | ||||||||||||
Use of estimates: | ||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and for determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable. | ||||||||||||
Segment reporting: | ||||||||||||
The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly the Company operates in one reportable operating segment in the United States. | ||||||||||||
The primary geographic regions in which the Company seeks leasing opportunities are North America and Europe. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the nine months ended September 30, 2013 and 2012 and long-lived assets as of September 30, 2013 and December 31, 2012 (dollars in thousands): | ||||||||||||
For The Nine Months Ended September 30, | ||||||||||||
2013 | % of Total | 2012 | % of Total | |||||||||
Revenue | ||||||||||||
United States | $ | 3,518 | 98% | $ | 4,762 | 96% | ||||||
United Kingdom | 88 | 2% | 211 | 4% | ||||||||
Total International | 88 | 2% | 211 | 4% | ||||||||
Total | $ | 3,606 | 100% | $ | 4,973 | 100% | ||||||
As of September 30, | As of December 31, | |||||||||||
2013 | % of Total | 2012 | % of Total | |||||||||
Long-lived assets | ||||||||||||
United States | $ | 8,585 | 100% | $ | 11,090 | 99% | ||||||
United Kingdom | 6 | 0% | 155 | 1% | ||||||||
Total International | 6 | 0% | 155 | 1% | ||||||||
Total | $ | 8,591 | 100% | $ | 11,245 | 100% | ||||||
2. Summary of significant accounting policies (continued): | ||||||||||||
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, no fair value adjustment was deemed necessary for the three and nine months ended September 30, 2013. By comparison, $32 thousand of fair value adjustments relative to impaired investments were recorded during the first nine months of 2012, all of which were recorded during the first quarter. | ||||||||||||
Warrants | ||||||||||||
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, as determined by the Managing Member. At September 30, 2013 and December 31, 2012, the Managing Member estimated the fair value of the warrants to be nominal in amount. Likewise, gains and/or losses recognized on the net exercise of certain warrants were nominal for the three and nine months ended September 30, 2013 and 2012. During the first nine months of 2012, the Company recorded $59 thousand of unrealized gains relative to the conversion of warrants associated with shares of certain venture companies. There were no unrealized gains recorded during the three months ended September 30, 2013 and 2012, or the nine months ended September 30, 2013. | ||||||||||||
Foreign currency transactions: | ||||||||||||
Foreign currency transaction gains and losses are reported in the results of operations as “other income” or “other loss” 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. The Company’s foreign currency translations gains and losses were nominal during the three months ended September 30, 2013. By comparison, the Company recorded net foreign currency losses of $22 thousand during the prior year period. Such net foreign currency losses totaled $1 thousand and $21 thousand for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||
Per Unit data: | ||||||||||||
Net income and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the period. | ||||||||||||
Recent accounting pronouncements: | ||||||||||||
Recent accounting standards updates as issued by the Financial Accounting Standards Board (FASB) were evaluated and determined to be not applicable to the Company. | ||||||||||||
Notes_Receivable_Net
Notes Receivable, Net | 9 Months Ended | ||
Sep. 30, 2013 | |||
Notes Receivable, Net [Abstract] | ' | ||
Notes Receivable, Net | ' | ||
3. Notes receivable, net: | |||
The Company has various notes receivable from borrowers who have financed the purchase of equipment through the Company. At September 30, 2013, the original terms of the notes receivable are from 17 to 120 months and bear interest at rates ranging from 8.42% to 11.58%. The notes are secured by the equipment financed, and mature from 2013 through 2016. | |||
The Company had no notes in non-accrual status at both September 30, 2013 and December 31, 2012. As of December 31, 2012, the Company did, however, have a note receivable that was deemed impaired. Such impaired note remained outstanding as of September 30, 2013. | |||
The impaired note at December 31, 2012 was placed in non-accrual status in 2010, at which time its term was modified to defer the repayment of principal until April 2012 while maintaining interest-only payments at the original rate of 11.58%. During 2011, the note was deemed impaired relative to its original payment terms. From April 1, 2012 well into the third quarter of 2012, the interest only payment arrangement was continued pending final resolution of the terms of repayment. Prior to the end of the third quarter of 2012, a large dollar amount was received to significantly reduce the then outstanding principal balance by September 30, 2012. During the periods when interest only was being paid, all such payments were made in accordance with the then applicable note modification agreements. The note was returned to accrual status effective October 1, 2012. As of September 30, 2013, $10 thousand of the aforementioned note remains outstanding. As of the same date, the estimated fair value of the impaired note is $0, reflecting previous valuation adjustments of $10 thousand. | |||
The minimum future payments receivable as of September 30, 2013 are as follows (in thousands): | |||
Three months ending December 31, 2013 | $ | 83 | |
Year ending December 31, 2014 | 221 | ||
2015 | 166 | ||
2016 | 188 | ||
658 | |||
Less: portion representing unearned interest income | -68 | ||
590 | |||
Less: reserve for impairment | -10 | ||
Notes receivable, net | $ | 580 | |
Allowance_for_Credit_Losses
Allowance for Credit Losses | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Allowance for Credit Losses [Abstract] | ' | ||||||||||||||||||||
Allowance for Credit Losses | ' | ||||||||||||||||||||
4. Allowance for credit losses: | |||||||||||||||||||||
The Company’s allowance for credit losses are as follows (in thousands): | |||||||||||||||||||||
Accounts Receivable Allowance | Valuation Adjustments on Financing Receivables | Total Allowance for Credit Losses | |||||||||||||||||||
for Doubtful Accounts | |||||||||||||||||||||
Notes | Finance | Operating | Notes | Finance | |||||||||||||||||
Receivable | Leases | Leases | Receivable | Leases | |||||||||||||||||
Balance December 31, 2011 | $ | - | $ | - | $ | 58 | $ | 2 | $ | - | $ | 60 | |||||||||
(Reversal of) provision for credit losses | - | - | -52 | 8 | - | -44 | |||||||||||||||
Balance December 31, 2012 | - | - | 6 | 10 | - | 16 | |||||||||||||||
Reversal of provision for credit losses | - | - | -3 | - | - | -3 | |||||||||||||||
Balance September 30, 2013 | $ | - | $ | - | $ | 3 | $ | 10 | $ | - | $ | 13 | |||||||||
Accounts receivable | |||||||||||||||||||||
Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and notes receivable which are currently due to the Company. | |||||||||||||||||||||
Allowances for doubtful accounts are typically established based upon their aging and historical charge off and collection experience and the creditworthiness of specifically identified lessees and borrowers, and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received. Accounts receivable are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of companies with lease or note payments outstanding less than 90 days. Based upon management’s judgment, such leases or notes may be placed in non-accrual status. Leases or notes placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid receivable is probable. Until such time, revenues on operating leases are recognized on a cash basis. All payments received on amounts billed under direct financing leases and notes receivable are applied only against outstanding principal balances. | |||||||||||||||||||||
Financing receivables | |||||||||||||||||||||
In addition to the allowance established for delinquent accounts receivable, the total allowance related solely to financing receivables also includes anticipated impairment charges on notes receivable and direct financing leases. | |||||||||||||||||||||
Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest when due. If it is determined that a loan is impaired with regard to scheduled payments, the Company will perform an analysis of the note to determine if an impairment valuation reserve is necessary. This analysis considers the estimated cash flows from the note, or the collateral value of the property underlying the note when note repayment is collateral dependent. Any required valuation reserve is charged to earnings when determined; and notes are charged off to the allowance as they are deemed uncollectible. | |||||||||||||||||||||
The asset underlying a direct financing lease contract is considered impaired if the estimated undiscounted future cash flows of the asset are less than its net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the 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. | |||||||||||||||||||||
4. Allowance for credit losses (continued): | |||||||||||||||||||||
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 September 30, 2013 and December 31, 2012, the Company’s allowance for credit losses (related solely to financing receivables) and its recorded investment in financing receivables were as follows (in thousands): | |||||||||||||||||||||
30-Sep-13 | Notes Receivable | Finance Leases | Total | ||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||
Ending balance | $ | 10 | $ | - | $ | 10 | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | 10 | $ | - | $ | 10 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | |||||||||||||||
Financing receivables: | |||||||||||||||||||||
Ending balance | $ | 590 | $ | 168 | $ | 758 | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | 590 | $ | 168 | $ | 758 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | |||||||||||||||
31-Dec-12 | Notes Receivable | Finance Leases | Total | ||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||
Ending balance | $ | 10 | $ | - | $ | 10 | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | 10 | $ | - | $ | 10 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | |||||||||||||||
Financing receivables: | |||||||||||||||||||||
Ending balance | $ | 769 | $ | 300 | $ | 1,069 | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | 769 | $ | 300 | $ | 1,069 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | |||||||||||||||
The Company evaluates the credit quality of its financing receivables on a scale equivalent to the following quality indicators related to corporate risk profiles: | |||||||||||||||||||||
Pass – Any account whose lessee/debtor, co-lessee/debtor or any guarantor has a credit rating on publicly traded or privately placed debt issues as rated by Moody’s or S&P for either Senior Unsecured debt, Long Term Issuer rating or Issuer rating that are in the tiers of ratings generally recognized by the investment community as constituting an Investment Grade credit rating; or, has been determined by the Manager to be an Investment Grade Equivalent or High Quality Corporate Credit per its Credit Policy or has a Not Rated internal rating by the Manager and the account is not considered by the Chief Credit Officer of the Manager to fall into one of the three risk profiles below. | |||||||||||||||||||||
4. Allowance for credit losses (continued): | |||||||||||||||||||||
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 September 30, 2013 and December 31, 2012, the Company’s financing receivables by credit quality indicator and by class of financing receivables are as follows (excludes initial direct costs) (in thousands): | |||||||||||||||||||||
Notes Receivable | Finance Leases | ||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||||
Pass | $ | 580 | $ | - | $ | 168 | $ | 274 | |||||||||||||
Special mention | - | 769 | - | 26 | |||||||||||||||||
Substandard | - | - | - | - | |||||||||||||||||
Doubtful | 10 | - | - | - | |||||||||||||||||
Total | $ | 590 | $ | 769 | $ | 168 | $ | 300 | |||||||||||||
As of September 30, 2013 and December 31, 2012, the Company’s impaired loans were as follows (in thousands): | |||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||
30-Sep-13 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||
Notes receivable | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
With an allowance recorded | |||||||||||||||||||||
Notes receivable | 10 | 10 | 10 | 10 | - | ||||||||||||||||
Total | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | - | |||||||||||
Impaired Loans | |||||||||||||||||||||
31-Dec-12 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||
Notes receivable | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
With an allowance recorded | |||||||||||||||||||||
Notes receivable | 10 | 10 | 10 | 14 | 4 | ||||||||||||||||
Total | $ | 10 | $ | 10 | $ | 10 | $ | 14 | $ | 4 | |||||||||||
At September 30, 2013 and December 31, 2012, investment in financing receivables is aged as follows (in thousands): | |||||||||||||||||||||
30-Sep-13 | 31-60 Days Past Due | 61-90 Days | Greater Than | Total | Current | Total Financing Receivables | Recorded Investment > 90 Days and Accruing | ||||||||||||||
Past Due | 90 Days | Past Due | |||||||||||||||||||
Notes receivable | $ | - | $ | - | $ | - | $ | - | $ | 590 | $ | 590 | $ | - | |||||||
Finance leases | - | - | - | - | 168 | 168 | - | ||||||||||||||
Total | $ | - | $ | - | $ | - | $ | - | $ | 758 | $ | 758 | $ | - | |||||||
31-Dec-12 | 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 | $ | - | $ | - | $ | - | $ | - | $ | 769 | $ | 769 | $ | - | |||||||
Finance leases | - | 33 | - | 33 | 267 | 300 | - | ||||||||||||||
Total | $ | - | $ | 33 | $ | - | $ | 33 | $ | 1,036 | $ | 1,069 | $ | - | |||||||
The Company had no notes in non-accrual status at both September 30, 2013 and December 31, 2012. As of December 31, 2012, the Company did, however, have a note receivable that was deemed impaired. Such impaired note remained outstanding as of September 30, 2013. See Note 3 for further discussion. | |||||||||||||||||||||
Investments_in_Equipment_and_L
Investments in Equipment and Leases, Net | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Investments in Equipment and Leases, Net [Abstract] | ' | |||||||||||
Investments in Equipment and Leases, Net | ' | |||||||||||
5. Investment in equipment and leases, net: | ||||||||||||
The Company’s investment in leases consists of the following (in thousands): | ||||||||||||
Balance | Reclassifications, | Depreciation/ | Balance | |||||||||
December 31, | Additions/ | Amortization | September 30, | |||||||||
2012 | Dispositions and Impairment Losses | Expense or | 2013 | |||||||||
Amortization | ||||||||||||
of Leases | ||||||||||||
Net investment in operating leases | $ | 10,515 | $ | -604 | $ | -1,647 | $ | 8,264 | ||||
Net investment in direct financing leases | 300 | 3 | -135 | 168 | ||||||||
Assets held for sale or lease, net | 371 | -256 | - | 115 | ||||||||
Initial direct costs, net of accumulated | 59 | - | -15 | 44 | ||||||||
amortization of $83 at September 30, 2013 and $80 at December 31, 2012 | ||||||||||||
Total | $ | 11,245 | $ | -857 | $ | -1,797 | $ | 8,591 | ||||
Impairment of investments in leases and assets held for sale or lease: | ||||||||||||
Management periodically reviews the carrying values of its assets on leases and assets held for lease or sale. Impairment losses are recorded as an adjustment to the net investment in operating leases. During the respective three months ended September 30, 2013 and 2012, the Company recorded $39 thousand and $221 thousand of fair value adjustments to reduce the cost basis of certain impaired lease and off-lease equipment. Such fair value adjustments totaled $52 thousand and $255 thousand during the respective nine months ended September 30, 2013 and 2012. | ||||||||||||
5. Investment in equipment and leases, net (continued): | ||||||||||||
The Company utilizes a straight line depreciation method for equipment in all of the categories currently in its portfolio of operating lease transactions. Depreciation expense on the Company’s equipment was approximately $441 thousand and $701 thousand for the respective three months ended September 30, 2013 and 2012, and was approximately $1.6 million and $2.3 million for the respective nine months ended September 30, 2013 and 2012. Initial direct costs amortization expense related to the Company’s operating and direct financing leases totaled $5 thousand and $4 thousand for the respective three months ended September 30,2013 and 2012, and $15 thousand and $17 thousand for the respective nine months ended September 30, 2013 and 2012. | ||||||||||||
All of the leased property was acquired during the years 2005 through 2011. | ||||||||||||
Operating leases: | ||||||||||||
Property on operating leases consists of the following (in thousands): | ||||||||||||
Balance | Additions | Reclassifications, Dispositions and Impairment Losses | Balance | |||||||||
December 31, | September 30, | |||||||||||
2012 | 2013 | |||||||||||
Transportation, rail | $ | 11,626 | $ | - | $ | -220 | $ | 11,406 | ||||
Transportation, other | 6,086 | - | -1,677 | 4,409 | ||||||||
Mining | 2,893 | - | - | 2,893 | ||||||||
Materials handling | 6,089 | - | -3,269 | 2,820 | ||||||||
Aviation | 1,658 | - | - | 1,658 | ||||||||
Marine vessels | 1,415 | - | - | 1,415 | ||||||||
Manufacturing | 953 | - | -123 | 830 | ||||||||
Construction | 898 | - | -140 | 758 | ||||||||
Other | 4 | - | 7 | 11 | ||||||||
31,622 | - | -5,422 | 26,200 | |||||||||
Less accumulated depreciation | -21,107 | -1,647 | 4,818 | -17,936 | ||||||||
Total | $ | 10,515 | $ | -1,647 | $ | -604 | $ | 8,264 | ||||
The average estimated residual value for assets on operating leases was 21% of the assets’ original cost at both September 30, 2013 and December 31, 2012. | ||||||||||||
There were no operating lease contracts placed in non-accrual status at September 30, 2013 and December 31, 2012. However, as of September 30, 2013 and December 31, 2012, the Company had certain other leases that have related accounts receivables aged 90 days or more that have not been placed on non-accrual status. In accordance with Company policy, such receivables are fully reserved. Management continues to closely monitor these leases for any actual change in collectability status and indication of necessary valuation adjustments. | ||||||||||||
Direct financing leases: | ||||||||||||
As of September 30, 2013, investment in direct financing leases primarily consists of materials handling, construction, manufacturing, and research equipment. As of December 31, 2012, such investment primarily consisted of materials handling, furniture and fixtures, and research equipment. The components of the Company’s investment in direct financing leases as of September 30, 2013 and December 31, 2012 are as follows (in thousands): | ||||||||||||
September 30, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Total minimum lease payments receivable | $ | 193 | $ | 325 | ||||||||
Estimated residual values of leased equipment (unguaranteed) | 30 | 60 | ||||||||||
Investment in direct financing leases | 223 | 385 | ||||||||||
Less unearned income | -55 | -85 | ||||||||||
Net investment in direct financing leases | $ | 168 | $ | 300 | ||||||||
There were no investments in direct financing lease assets in non-accrual status at September 30, 2013 and December 31, 2012. | ||||||||||||
At September 30, 2013, the aggregate amounts of future minimum lease payments to be received are as follows (in thousands): | ||||||||||||
Operating | Direct | Total | ||||||||||
Leases | Financing | |||||||||||
Leases | ||||||||||||
Three months ending December 31, 2013 | $ | 806 | $ | 40 | $ | 846 | ||||||
Year ending December 31, 2014 | 2,308 | 96 | 2,404 | |||||||||
2015 | 1,245 | 46 | 1,291 | |||||||||
2016 | 557 | 11 | 568 | |||||||||
2017 | 485 | - | 485 | |||||||||
2018 | 115 | - | 115 | |||||||||
Thereafter | 25 | - | 25 | |||||||||
$ | 5,541 | $ | 193 | $ | 5,734 | |||||||
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||
Related Party Transactions | ' | |||||||||||
6. Related party transactions: | ||||||||||||
The terms of the Operating Agreement provide that AFS and/or affiliates are entitled to receive certain fees for equipment management and resale, and for management of the Company. | ||||||||||||
The Operating Agreement allows for the reimbursement of costs incurred by AFS in providing administrative services to the Company. Administrative services provided include Company accounting, finance/treasury, investor relations, legal counsel and lease and equipment documentation. AFS is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of equipment. | ||||||||||||
Each of ATEL Leasing Corporation (“ALC”) and AFS is a wholly-owned subsidiary of ATEL Capital Group and performs services for the Company. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; and investor relations, communications services and general administrative services are performed by AFS. | ||||||||||||
Cost reimbursements to the Managing Member are based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as managed assets, number of investors or contributed capital based upon the type of cost incurred. | ||||||||||||
The Operating Agreement places an annual limit and a cumulative limit for cost reimbursements to AFS and/or affiliates. Any reimbursable costs incurred by AFS and/or affiliates during the year exceeding the annual and/or cumulative limits cannot be reimbursed in the current year, though such costs may be reimbursable in future years to the extent of the cumulative limit. As of September 30, 2013, the Company has not exceeded the annual and/or cumulative limitations discussed above. | ||||||||||||
AFS and/or affiliates earned fees and commissions, and billed for reimbursements, pursuant to the Operating Agreement as follows during each of the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Costs reimbursed to Managing Member and/or affiliates | $ | 81 | $ | 96 | $ | 242 | $ | 312 | ||||
Asset management fees to Managing Member and/or affiliates | 51 | 79 | 181 | 251 | ||||||||
Acquisition and initial direct costs paid to Managing Member | - | 30 | - | 42 | ||||||||
and/or affiliates | ||||||||||||
$ | 132 | $ | 205 | $ | 423 | $ | 605 | |||||
NonRecourse_Debt
Non-Recourse Debt | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Non-Recourse Debt [Abstract] | ' | |||||||
Non-Recourse Debt | ' | |||||||
7. Non-recourse debt: | ||||||||
At September 30, 2013, 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 4.40% to 5.95%. The notes are secured by assignments of lease payments and pledges of assets. At September 30, 2013, gross lease rentals totaled approximately $2.5 million over the remaining lease terms; and the carrying value of the pledged assets is approximately $5.2 million. The notes mature from 2014 through 2015. | ||||||||
The non-recourse debt does not contain any material financial covenants. The debt is secured by liens granted by the Company to the non-recourse lenders on (and only on) the discounted lease transactions. The lenders have recourse only to the following collateral: the specific leased equipment; the related lease chattel paper; the lease receivables; and proceeds of the foregoing items. The non-recourse obligation is payable solely out of the respective specific security and the Company does not guarantee (nor is the Company otherwise contractually responsible for) the payment of the non-recourse debt as a general obligation or liability of the Company. Although the Company does not have any direct or general liability in connection with the non-recourse debt apart from the security granted, the Company is directly and generally liable and responsible for certain representations, warranties, and covenants made to the lenders, such as warranties as to genuineness of the transaction parties' signatures, as to the genuineness of the respective lease chattel paper or the transaction as a whole, or as to the Company's good title to or perfected interest in the secured collateral, as well as similar representations, warranties and covenants typically provided by non-recourse borrowers and customary in the equipment finance industry, and are viewed by such industry as being consistent with non-recourse discount financing obligations. Accordingly, as there are no financial covenants or ratios imposed on the Company in connection with the non-recourse debt, the Company has determined that there are no material covenants with respect to the non-recourse debt that warrant footnote disclosure. | ||||||||
Future minimum payments of non-recourse debt are as follows (in thousands): | ||||||||
Principal | Interest | Total | ||||||
Three months ending December 31, 2013 | $ | 430 | $ | 30 | $ | 460 | ||
Year ending December 31, 2014 | 1,313 | 73 | 1,386 | |||||
2015 | 639 | 17 | 656 | |||||
$ | 2,382 | $ | 120 | $ | 2,502 | |||
Borrowing_Facilities
Borrowing Facilities | 9 Months Ended |
Sep. 30, 2013 | |
Borrowing Facilities [Abstract] | ' |
Borrowing Facilities | ' |
8. Borrowing facilities: | |
Effective as of December 31, 2012, the Company’s participation in a revolving credit facility (the “Credit Facility”) with AFS and certain of its affiliates was terminated. The Company had no related balances outstanding at the time. | |
Prior to December 31, 2012, the Company participated with AFS and certain of its affiliates in the Credit Facility comprised of a working capital facility to AFS, an acquisition facility (the “Acquisition Facility”) and a warehouse facility (the “Warehouse Facility”) to AFS, the Company and affiliates, and a venture facility available to an affiliate, with a syndicate of financial institutions as lenders. The Credit Facility was for an amount up to $60 million and included certain financial covenants. The interest rate on the Credit Facility was based on either the LIBOR/Eurocurrency rate of 1-, 2-, 3- or 6-month maturity plus a lender designated spread, or the bank’s Prime rate, which re-priced daily. Principal amounts of loans made under the Credit Facility that were prepaid may be re-borrowed on the terms and subject to the conditions set forth under the Credit Facility. | |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2013 | |
Commitments [Abstract] | ' |
Commitments | ' |
9. Commitments: | |
At September 30, 2013, the Company had no commitments to either purchase lease assets or fund loans. | |
Guarantees
Guarantees | 9 Months Ended |
Sep. 30, 2013 | |
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 | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Members' Capital [Abstract] | ' | |||||||||||
Members' Capital | ' | |||||||||||
11. Members’ capital: | ||||||||||||
A total of 5,209,307 Units were issued and outstanding as of September 30, 2013 and December 31, 2012. The Fund was authorized to issue up to 15,000,000 Units. The Company terminated sales of Units effective April 30, 2006. | ||||||||||||
The Company has the right, exercisable at the Manager’s discretion, but not the obligation, to repurchase Units of a Unitholder who ceases to be a U.S. Citizen, for a price equal to 100% of the holder’s capital account. The Company is otherwise permitted, but not required, to repurchase Units upon a holder’s request. The repurchase of Fund Units is made in accordance with Section 13 of the Amended and Restated Limited Liability Company Operating Agreement. The repurchase would be at the discretion of the Manager on terms it determines to be appropriate under given circumstances, in the event that the Manager deems such repurchase to be in the best interest of the Company; provided, the Company is never required to repurchase any Units. Upon the repurchase of any Units by the Fund, the tendered Units are cancelled. Units repurchased in prior periods were repurchased at amounts representing the original investment less cumulative distributions made to the Unitholder with respect to the Units. All Units repurchased during a quarter are deemed to be repurchased effective the last day of the preceding quarter, and are not deemed to be outstanding during, or entitled to allocations of net income, net loss or distributions for the quarter in which such repurchase occurs. | ||||||||||||
Distributions to the Other Members were as follows (in thousands, except as to Units and per Unit data): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Distributions | $ | - | $ | 1,205 | $ | 2,409 | $ | 3,614 | ||||
Weighted average number of Units outstanding | 5,209,307 | 5,209,307 | 5,209,307 | 5,209,307 | ||||||||
Weighted average distributions per Unit | $ | - | $ | 0.23 | $ | 0.46 | $ | 0.69 | ||||
The monthly distributions were discontinued in 2013 as the Company entered its liquidation phase. The rates and frequency of periodic distributions paid by the Fund during its liquidation phase are solely at the discretion of the Manager. | ||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
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. | |||||||||||||||
The Company had no assets or liabilities requiring measurement at fair value on a recurring basis as of September 30, 2013 and December 31, 2012; however, the Company recorded non-recurring adjustments to reflect the fair values of certain impaired lease and off-lease equipment during the first nine months of 2013, and those of certain impaired lease and off-lease equipment, notes receivable and investment securities during 2012. Balances shown at September 30, 2013 and December 31, 2012 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. | |||||||||||||||
Such fair value adjustments utilized the following methodology: | |||||||||||||||
Impaired operating lease and off-lease equipment | |||||||||||||||
During the third quarter of 2013, the Company recorded fair value adjustments of $39 thousand to reduce the cost basis of certain impaired lease and off-lease equipment. Such amount is in addition to the $13 thousand of fair value adjustments recorded during the first six months of 2013. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of impaired lease assets are 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. | |||||||||||||||
During the three and nine months ended September 30, 2012, fair value adjustments relative to impaired lease and off-lease equipment amounted to $221 thousand and $255 thousand, respectively. The fair values of the impaired equipment were classified within Level 3 of the valuation hierarchy. An additional $174 thousand of fair value adjustments were recorded through December 31, 2012. | |||||||||||||||
Impaired notes receivable | |||||||||||||||
The fair value of the Company’s notes receivable, when impairment adjustments are required, is estimated using either third party appraisals or estimations of the value of collateral (for collateral dependent loans) or discounted cash flow analyses (by discounting estimated future cash flows) using the effective interest rate contained in the terms of the original loan. The Company had no fair value adjustments relative to impaired notes receivable during the three and nine months ended September 30, 2013. | |||||||||||||||
12. Fair value measurements (continued): | |||||||||||||||
During the first quarter of 2012, the Company recorded an additional $8 thousand adjustment to reflect the fair value of a note deemed impaired in 2011. Such amount also represents the total fair value adjustments for the nine months ended September 30, 2012. The incremental adjustment was based upon an independent appraisal of the underlying collateral. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of the impaired notes receivable was classified within Level 3 of the valuation hierarchy. Such valuation utilized a market approach technique and used inputs from third party appraisers that utilize current market transactions as adjusted for certain factors specific to the underlying collateral. There was no additional fair value adjustment through December 31, 2012. | |||||||||||||||
Impaired investment securities | |||||||||||||||
The Company’s investment securities are not registered for public sale and are carried at cost. The investment securities are adjusted for impairment, if any, 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. The Company had no fair value adjustments to investment securities during first nine months of 2013. | |||||||||||||||
During 2012, the Company recorded $40 thousand of non-recurring fair value adjustments which reduced the cost basis of two investment securities. Of the total adjustment, $32 thousand was recorded during the first quarter of 2012 and was based on an approximate 66% reduction in the valuation of one of the securities. Such reduction considered the investee’s current liquidity, rate of cash burn and potential for additional capital infusion. The remaining $8 thousand, which was recorded during the fourth quarter of 2012, represents an additional adjustment to an investment which was originally deemed impaired in March 2011. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair values of the impaired investment securities were classified within Level 3 of the valuation hierarchy due to the significant inputs that are unobservable in the market. | |||||||||||||||
The following table presents the fair value measurement of impaired assets measured at fair value on a non-recurring basis and the level within the hierarchy in which the fair value measurements fall at September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||
30-Sep-13 | Level 1 Estimated Fair Value | Level 2 Estimated Fair Value | Level 3 Estimated Fair Value | ||||||||||||
Assets measured at fair value on a non-recurring basis | |||||||||||||||
Impaired lease and off-lease equipment | $ | 19 | $ | - | $ | - | $ | 19 | |||||||
31-Dec-12 | 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 lease and off-lease equipment | $ | 405 | $ | - | $ | - | $ | 405 | |||||||
Impaired investment securities | 24 | - | - | 24 | |||||||||||
The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s non-recurring fair value adjustments categorized as Level 3 in the fair value hierarchy at September 30, 2013: | |||||||||||||||
Name | Valuation Frequency | Valuation Technique | Unobservable Inputs | Range of Input Values | |||||||||||
Lease Equipment | Non-recurring | Market Approach | Third Party Agents' Pricing | $600 | |||||||||||
Quotes - per equipment | (total of $18,600) | ||||||||||||||
Equipment Condition | Poor to Average | ||||||||||||||
The following disclosure of the estimated fair value of financial instruments is made in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification. Fair value estimates, methods and assumptions, set forth below for the Company’s financial instruments, are made solely to comply with the requirements of the Financial Instruments Topic 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. | |||||||||||||||
12. Fair value measurements (continued): | |||||||||||||||
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 the 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 not recorded at fair value on the Company’s balance sheet at September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||
Fair Value Measurements at September 30, 2013 | |||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 725 | $ | 725 | $ | - | $ | - | $ | 725 | |||||
Notes receivable, net | 580 | - | - | 580 | 580 | ||||||||||
Investment in securities | 219 | - | - | 219 | 219 | ||||||||||
Financial liabilities: | |||||||||||||||
Non-recourse debt | 2,382 | - | - | 2,463 | 2,463 | ||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 1,502 | $ | 1,502 | $ | - | $ | - | $ | 1,502 | |||||
Notes receivable, net | 759 | - | - | 759 | 759 | ||||||||||
Investment in securities | 219 | - | - | 219 | 219 | ||||||||||
Financial liabilities: | |||||||||||||||
Non-recourse debt | 3,651 | - | - | 3,807 | 3,807 | ||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policy) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
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, 2013 are not necessarily indicative of the results to be expected for the full year. | ||||||||||||
2. Summary of significant accounting policies (continued): | ||||||||||||
Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations. | ||||||||||||
Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. | ||||||||||||
In preparing the accompanying unaudited financial statements, the Managing Member has reviewed events that have occurred after September 30, 2013 up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements, or adjustments thereto. | ||||||||||||
Use of Estimates | ' | |||||||||||
Use of estimates: | ||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and for determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable. | ||||||||||||
Segment Reporting | ' | |||||||||||
Segment reporting: | ||||||||||||
The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly the Company operates in one reportable operating segment in the United States. | ||||||||||||
The primary geographic regions in which the Company seeks leasing opportunities are North America and Europe. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the nine months ended September 30, 2013 and 2012 and long-lived assets as of September 30, 2013 and December 31, 2012 (dollars in thousands): | ||||||||||||
For The Nine Months Ended September 30, | ||||||||||||
2013 | % of Total | 2012 | % of Total | |||||||||
Revenue | ||||||||||||
United States | $ | 3,518 | 98% | $ | 4,762 | 96% | ||||||
United Kingdom | 88 | 2% | 211 | 4% | ||||||||
Total International | 88 | 2% | 211 | 4% | ||||||||
Total | $ | 3,606 | 100% | $ | 4,973 | 100% | ||||||
As of September 30, | As of December 31, | |||||||||||
2013 | % of Total | 2012 | % of Total | |||||||||
Long-lived assets | ||||||||||||
United States | $ | 8,585 | 100% | $ | 11,090 | 99% | ||||||
United Kingdom | 6 | 0% | 155 | 1% | ||||||||
Total International | 6 | 0% | 155 | 1% | ||||||||
Total | $ | 8,591 | 100% | $ | 11,245 | 100% | ||||||
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, no fair value adjustment was deemed necessary for the three and nine months ended September 30, 2013. By comparison, $32 thousand of fair value adjustments relative to impaired investments were recorded during the first nine months of 2012, all of which were recorded during the first quarter. | ||||||||||||
Warrants | ||||||||||||
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, as determined by the Managing Member. At September 30, 2013 and December 31, 2012, the Managing Member estimated the fair value of the warrants to be nominal in amount. Likewise, gains and/or losses recognized on the net exercise of certain warrants were nominal for the three and nine months ended September 30, 2013 and 2012. During the first nine months of 2012, the Company recorded $59 thousand of unrealized gains relative to the conversion of warrants associated with shares of certain venture companies. There were no unrealized gains recorded during the three months ended September 30, 2013 and 2012, or the nine months ended September 30, 2013. | ||||||||||||
Foreign Currency Transactions | ' | |||||||||||
Foreign currency transactions: | ||||||||||||
Foreign currency transaction gains and losses are reported in the results of operations as “other income” or “other loss” 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. The Company’s foreign currency translations gains and losses were nominal during the three months ended September 30, 2013. By comparison, the Company recorded net foreign currency losses of $22 thousand during the prior year period. Such net foreign currency losses totaled $1 thousand and $21 thousand for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||
Per Unit Data | ' | |||||||||||
Per Unit data: | ||||||||||||
Net income and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the period. | ||||||||||||
Recent Accounting Pronouncements | ' | |||||||||||
Recent accounting pronouncements: | ||||||||||||
Recent accounting standards updates as issued by the Financial Accounting Standards Board (FASB) were evaluated and determined to be not applicable to the Company. | ||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | |||||||||||
Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue and Long-Lived Assets | ' | |||||||||||
The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the nine months ended September 30, 2013 and 2012 and long-lived assets as of September 30, 2013 and December 31, 2012 (dollars in thousands): | ||||||||||||
For The Nine Months Ended September 30, | ||||||||||||
2013 | % of Total | 2012 | % of Total | |||||||||
Revenue | ||||||||||||
United States | $ | 3,518 | 98% | $ | 4,762 | 96% | ||||||
United Kingdom | 88 | 2% | 211 | 4% | ||||||||
Total International | 88 | 2% | 211 | 4% | ||||||||
Total | $ | 3,606 | 100% | $ | 4,973 | 100% | ||||||
As of September 30, | As of December 31, | |||||||||||
2013 | % of Total | 2012 | % of Total | |||||||||
Long-lived assets | ||||||||||||
United States | $ | 8,585 | 100% | $ | 11,090 | 99% | ||||||
United Kingdom | 6 | 0% | 155 | 1% | ||||||||
Total International | 6 | 0% | 155 | 1% | ||||||||
Total | $ | 8,591 | 100% | $ | 11,245 | 100% | ||||||
Notes_Receivable_Net_Tables
Notes Receivable, Net (Tables) | 9 Months Ended | ||
Sep. 30, 2013 | |||
Notes Receivable, Net [Abstract] | ' | ||
Minimum Future Payments Receivable | ' | ||
The minimum future payments receivable as of September 30, 2013 are as follows (in thousands): | |||
Three months ending December 31, 2013 | $ | 83 | |
Year ending December 31, 2014 | 221 | ||
2015 | 166 | ||
2016 | 188 | ||
658 | |||
Less: portion representing unearned interest income | -68 | ||
590 | |||
Less: reserve for impairment | -10 | ||
Notes receivable, net | $ | 580 | |
Allowance_for_Credit_Losses_Ta
Allowance for Credit Losses (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Allowance for Credit Losses [Abstract] | ' | ||||||||||||||||||||
Activity in Allowance for Doubtful Accounts | ' | ||||||||||||||||||||
The Company’s allowance for credit losses are as follows (in thousands): | |||||||||||||||||||||
Accounts Receivable Allowance | Valuation Adjustments on Financing Receivables | Total Allowance for Credit Losses | |||||||||||||||||||
for Doubtful Accounts | |||||||||||||||||||||
Notes | Finance | Operating | Notes | Finance | |||||||||||||||||
Receivable | Leases | Leases | Receivable | Leases | |||||||||||||||||
Balance December 31, 2011 | $ | - | $ | - | $ | 58 | $ | 2 | $ | - | $ | 60 | |||||||||
(Reversal of) provision for credit losses | - | - | -52 | 8 | - | -44 | |||||||||||||||
Balance December 31, 2012 | - | - | 6 | 10 | - | 16 | |||||||||||||||
Reversal of provision for credit losses | - | - | -3 | - | - | -3 | |||||||||||||||
Balance September 30, 2013 | $ | - | $ | - | $ | 3 | $ | 10 | $ | - | $ | 13 | |||||||||
Recorded Investment in Financing Receivables | ' | ||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, the Company’s allowance for credit losses (related solely to financing receivables) and its recorded investment in financing receivables were as follows (in thousands): | |||||||||||||||||||||
30-Sep-13 | Notes Receivable | Finance Leases | Total | ||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||
Ending balance | $ | 10 | $ | - | $ | 10 | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | 10 | $ | - | $ | 10 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | |||||||||||||||
Financing receivables: | |||||||||||||||||||||
Ending balance | $ | 590 | $ | 168 | $ | 758 | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | 590 | $ | 168 | $ | 758 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | |||||||||||||||
31-Dec-12 | Notes Receivable | Finance Leases | Total | ||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||
Ending balance | $ | 10 | $ | - | $ | 10 | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | 10 | $ | - | $ | 10 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | |||||||||||||||
Financing receivables: | |||||||||||||||||||||
Ending balance | $ | 769 | $ | 300 | $ | 1,069 | |||||||||||||||
Ending balance: individually evaluated for impairment | $ | 769 | $ | 300 | $ | 1,069 | |||||||||||||||
Ending balance: collectively evaluated for impairment | $ | - | $ | - | $ | - | |||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | |||||||||||||||
Financing Receivables by Credit Quality Indicator and by Class | ' | ||||||||||||||||||||
At September 30, 2013 and December 31, 2012, the Company’s financing receivables by credit quality indicator and by class of financing receivables are as follows (excludes initial direct costs) (in thousands): | |||||||||||||||||||||
Notes Receivable | Finance Leases | ||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||||
Pass | $ | 580 | $ | - | $ | 168 | $ | 274 | |||||||||||||
Special mention | - | 769 | - | 26 | |||||||||||||||||
Substandard | - | - | - | - | |||||||||||||||||
Doubtful | 10 | - | - | - | |||||||||||||||||
Total | $ | 590 | $ | 769 | $ | 168 | $ | 300 | |||||||||||||
Schedule of Impaired Loans | ' | ||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, the Company’s impaired loans were as follows (in thousands): | |||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||
30-Sep-13 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||
Notes receivable | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
With an allowance recorded | |||||||||||||||||||||
Notes receivable | 10 | 10 | 10 | 10 | - | ||||||||||||||||
Total | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | - | |||||||||||
Impaired Loans | |||||||||||||||||||||
31-Dec-12 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||
Notes receivable | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
With an allowance recorded | |||||||||||||||||||||
Notes receivable | 10 | 10 | 10 | 14 | 4 | ||||||||||||||||
Total | $ | 10 | $ | 10 | $ | 10 | $ | 14 | $ | 4 | |||||||||||
Net Investment in Financing Receivables by Age | ' | ||||||||||||||||||||
At September 30, 2013 and December 31, 2012, investment in financing receivables is aged as follows (in thousands): | |||||||||||||||||||||
30-Sep-13 | 31-60 Days Past Due | 61-90 Days | Greater Than | Total | Current | Total Financing Receivables | Recorded Investment > 90 Days and Accruing | ||||||||||||||
Past Due | 90 Days | Past Due | |||||||||||||||||||
Notes receivable | $ | - | $ | - | $ | - | $ | - | $ | 590 | $ | 590 | $ | - | |||||||
Finance leases | - | - | - | - | 168 | 168 | - | ||||||||||||||
Total | $ | - | $ | - | $ | - | $ | - | $ | 758 | $ | 758 | $ | - | |||||||
31-Dec-12 | 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 | $ | - | $ | - | $ | - | $ | - | $ | 769 | $ | 769 | $ | - | |||||||
Finance leases | - | 33 | - | 33 | 267 | 300 | - | ||||||||||||||
Total | $ | - | $ | 33 | $ | - | $ | 33 | $ | 1,036 | $ | 1,069 | $ | - | |||||||
Investments_in_Equipment_and_L1
Investments in Equipment and Leases, Net (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Investments in Equipment and Leases, Net [Abstract] | ' | |||||||||||
Investment in Leases | ' | |||||||||||
The Company’s investment in leases consists of the following (in thousands): | ||||||||||||
Balance | Reclassifications, | Depreciation/ | Balance | |||||||||
December 31, | Additions/ | Amortization | September 30, | |||||||||
2012 | Dispositions and Impairment Losses | Expense or | 2013 | |||||||||
Amortization | ||||||||||||
of Leases | ||||||||||||
Net investment in operating leases | $ | 10,515 | $ | -604 | $ | -1,647 | $ | 8,264 | ||||
Net investment in direct financing leases | 300 | 3 | -135 | 168 | ||||||||
Assets held for sale or lease, net | 371 | -256 | - | 115 | ||||||||
Initial direct costs, net of accumulated | 59 | - | -15 | 44 | ||||||||
amortization of $83 at September 30, 2013 and $80 at December 31, 2012 | ||||||||||||
Total | $ | 11,245 | $ | -857 | $ | -1,797 | $ | 8,591 | ||||
Property on Operating Leases | ' | |||||||||||
Property on operating leases consists of the following (in thousands): | ||||||||||||
Balance | Additions | Reclassifications, Dispositions and Impairment Losses | Balance | |||||||||
December 31, | September 30, | |||||||||||
2012 | 2013 | |||||||||||
Transportation, rail | $ | 11,626 | $ | - | $ | -220 | $ | 11,406 | ||||
Transportation, other | 6,086 | - | -1,677 | 4,409 | ||||||||
Mining | 2,893 | - | - | 2,893 | ||||||||
Materials handling | 6,089 | - | -3,269 | 2,820 | ||||||||
Aviation | 1,658 | - | - | 1,658 | ||||||||
Marine vessels | 1,415 | - | - | 1,415 | ||||||||
Manufacturing | 953 | - | -123 | 830 | ||||||||
Construction | 898 | - | -140 | 758 | ||||||||
Other | 4 | - | 7 | 11 | ||||||||
31,622 | - | -5,422 | 26,200 | |||||||||
Less accumulated depreciation | -21,107 | -1,647 | 4,818 | -17,936 | ||||||||
Total | $ | 10,515 | $ | -1,647 | $ | -604 | $ | 8,264 | ||||
Components of Company's Investment in Direct Financing Leases | ' | |||||||||||
The components of the Company’s investment in direct financing leases as of September 30, 2013 and December 31, 2012 are as follows (in thousands): | ||||||||||||
September 30, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Total minimum lease payments receivable | $ | 193 | $ | 325 | ||||||||
Estimated residual values of leased equipment (unguaranteed) | 30 | 60 | ||||||||||
Investment in direct financing leases | 223 | 385 | ||||||||||
Less unearned income | -55 | -85 | ||||||||||
Net investment in direct financing leases | $ | 168 | $ | 300 | ||||||||
Future Minimum Lease Payments Receivable | ' | |||||||||||
At September 30, 2013, the aggregate amounts of future minimum lease payments to be received are as follows (in thousands): | ||||||||||||
Operating | Direct | Total | ||||||||||
Leases | Financing | |||||||||||
Leases | ||||||||||||
Three months ending December 31, 2013 | $ | 806 | $ | 40 | $ | 846 | ||||||
Year ending December 31, 2014 | 2,308 | 96 | 2,404 | |||||||||
2015 | 1,245 | 46 | 1,291 | |||||||||
2016 | 557 | 11 | 568 | |||||||||
2017 | 485 | - | 485 | |||||||||
2018 | 115 | - | 115 | |||||||||
Thereafter | 25 | - | 25 | |||||||||
$ | 5,541 | $ | 193 | $ | 5,734 | |||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||
Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement | ' | |||||||||||
AFS and/or affiliates earned fees and commissions, and billed for reimbursements, pursuant to the Operating Agreement as follows during each of the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Costs reimbursed to Managing Member and/or affiliates | $ | 81 | $ | 96 | $ | 242 | $ | 312 | ||||
Asset management fees to Managing Member and/or affiliates | 51 | 79 | 181 | 251 | ||||||||
Acquisition and initial direct costs paid to Managing Member | - | 30 | - | 42 | ||||||||
and/or affiliates | ||||||||||||
$ | 132 | $ | 205 | $ | 423 | $ | 605 | |||||
NonRecourse_Debt_Tables
Non-Recourse Debt (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
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, 2013 | $ | 430 | $ | 30 | $ | 460 | ||
Year ending December 31, 2014 | 1,313 | 73 | 1,386 | |||||
2015 | 639 | 17 | 656 | |||||
$ | 2,382 | $ | 120 | $ | 2,502 | |||
Members_Capital_Tables
Members' Capital (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Members' Capital [Abstract] | ' | |||||||||||
Distributions to Other Members | ' | |||||||||||
Distributions to the Other Members were as follows (in thousands, except as to Units and per Unit data): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Distributions | $ | - | $ | 1,205 | $ | 2,409 | $ | 3,614 | ||||
Weighted average number of Units outstanding | 5,209,307 | 5,209,307 | 5,209,307 | 5,209,307 | ||||||||
Weighted average distributions per Unit | $ | - | $ | 0.23 | $ | 0.46 | $ | 0.69 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||
Fair Value Measurement of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | ' | ||||||||||||||
The following table presents the fair value measurement of impaired assets measured at fair value on a non-recurring basis and the level within the hierarchy in which the fair value measurements fall at September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||
30-Sep-13 | Level 1 Estimated Fair Value | Level 2 Estimated Fair Value | Level 3 Estimated Fair Value | ||||||||||||
Assets measured at fair value on a non-recurring basis | |||||||||||||||
Impaired lease and off-lease equipment | $ | 19 | $ | - | $ | - | $ | 19 | |||||||
31-Dec-12 | 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 lease and off-lease equipment | $ | 405 | $ | - | $ | - | $ | 405 | |||||||
Impaired investment securities | 24 | - | - | 24 | |||||||||||
Summary Valuation Techniques and Significant Unobservable Inputs Used | ' | ||||||||||||||
The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s non-recurring fair value adjustments categorized as Level 3 in the fair value hierarchy at September 30, 2013: | |||||||||||||||
Name | Valuation Frequency | Valuation Technique | Unobservable Inputs | Range of Input Values | |||||||||||
Lease Equipment | Non-recurring | Market Approach | Third Party Agents' Pricing | $600 | |||||||||||
Quotes - per equipment | (total of $18,600) | ||||||||||||||
Equipment Condition | Poor to Average | ||||||||||||||
Estimated Fair Values of Financial Instruments | ' | ||||||||||||||
The following tables present a summary of the carrying value and fair value by level of financial instruments not recorded at fair value on the Company’s balance sheet at September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||
Fair Value Measurements at September 30, 2013 | |||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 725 | $ | 725 | $ | - | $ | - | $ | 725 | |||||
Notes receivable, net | 580 | - | - | 580 | 580 | ||||||||||
Investment in securities | 219 | - | - | 219 | 219 | ||||||||||
Financial liabilities: | |||||||||||||||
Non-recourse debt | 2,382 | - | - | 2,463 | 2,463 | ||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 1,502 | $ | 1,502 | $ | - | $ | - | $ | 1,502 | |||||
Notes receivable, net | 759 | - | - | 759 | 759 | ||||||||||
Investment in securities | 219 | - | - | 219 | 219 | ||||||||||
Financial liabilities: | |||||||||||||||
Non-recourse debt | 3,651 | - | - | 3,807 | 3,807 | ||||||||||
Organization_and_Limited_Liabi1
Organization and Limited Liability Company Matters (Narrative) (Details) (USD $) | 0 Months Ended | 1 Months Ended | 80 Months Ended | 102 Months Ended | |
Jul. 13, 2005 | Apr. 11, 2005 | 31-May-05 | Dec. 31, 2012 | Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' | ' |
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 | 958,274 | ' | 120,000 | ' | ' |
Proceeds from sale of Limited Liability Company Units | $9,600,000 | ' | $1,200,000 | ' | ' |
Contribution of rescissions | ' | ' | ' | ' | 52,200,000 |
Gross contributions from Other Members | ' | ' | ' | ' | 52,800,000 |
Repurchase of units, value | ' | ' | ' | ' | 636,000 |
Units issued | ' | ' | ' | 5,209,307 | 5,209,307 |
Units outstanding | ' | ' | ' | 5,209,307 | 5,209,307 |
Reinvestment period | ' | ' | ' | '6 years | ' |
Minimum [Member] | ' | ' | ' | ' | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' | ' |
Amount of aggregate subscriptions for Pennsylvania subscriptions to be released to the Fund | $7,500,000 | ' | ' | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
segment | |||||||
Summary of Significant Accounting Policies [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | ' | 1 | ' | ' |
Impairment losses on investment securities | ' | ' | $32 | $32 | ' | $32 | $40 |
Unrealized gain relative to the conversion of warrants | 0 | 0 | ' | ' | 0 | 59 | ' |
Foreign currency gain | ' | $22 | ' | ' | $1 | $21 | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue And Long-Lived Assets) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | $1,095 | $1,519 | $3,606 | $4,973 | ' |
Percentage of total revenue | ' | ' | 100.00% | 100.00% | ' |
Long-lived assets | 8,591 | ' | 8,591 | ' | 11,245 |
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 | ' | ' | 3,518 | 4,762 | ' |
Percentage of total revenue | ' | ' | 98.00% | 96.00% | ' |
Long-lived assets | 8,585 | ' | 8,585 | ' | 11,090 |
Percentage of long lived assets | 100.00% | ' | 100.00% | ' | 99.00% |
United Kingdom [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | ' | ' | 88 | 211 | ' |
Percentage of total revenue | ' | ' | 2.00% | 4.00% | ' |
Long-lived assets | 6 | ' | 6 | ' | 155 |
Percentage of long lived assets | 0.00% | ' | 0.00% | ' | 1.00% |
Total International [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | ' | ' | 88 | 211 | ' |
Percentage of total revenue | ' | ' | 2.00% | 4.00% | ' |
Long-lived assets | $6 | ' | $6 | ' | $155 |
Percentage of long lived assets | 0.00% | ' | 0.00% | ' | 1.00% |
Notes_Receivable_Net_Narrative
Notes Receivable, Net (Narrative) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Notes receivable, interest rate | ' | 11.58% |
Outstanding principal impaired note receivable | $10 | ' |
Fair value of impaired note | 0 | ' |
Fair value adjustments which reduced the cost basis of impaired loans | $10 | $10 |
Minimum [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Terms of the notes receivable | '17 months | ' |
Notes receivable, interest rate | 8.42% | ' |
Notes maturity period | '2013 | ' |
Maximum [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Terms of the notes receivable | '120 months | ' |
Notes receivable, interest rate | 11.58% | ' |
Notes maturity period | '2016 | ' |
Notes_Receivable_Net_Minimum_F
Notes Receivable, Net (Minimum Future Payments Receivable) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Notes Receivable, Net [Abstract] | ' | ' |
Six months ending December 31, 2013 | $83 | ' |
Year ending December 31, 2014 | 221 | ' |
2015 | 166 | ' |
2016 | 188 | ' |
Financing receivable, gross | 658 | ' |
Less: portion representing unearned interest income | -68 | -110 |
Notes receivable | 590 | 769 |
Less: Reserve for impairment | -10 | -10 |
Notes receivable, net | $580 | $759 |
Allowance_for_Credit_Losses_Na
Allowance for Credit Losses (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Minimum [Member] | ' |
Accounts receivable, period for non accrual status | '90 days |
Maximum [Member] | ' |
Accounts receivable, period of review for impairment | '90 days |
Allowance_for_Credit_Losses_Ac
Allowance for Credit Losses (Activity in Allowance for Doubtful Accounts) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | $16 | $60 | $60 |
(Reversal of) provision for credit losses | 2 | 11 | -3 | -38 | -44 |
Ending Balance | 13 | ' | 13 | ' | 16 |
Allowance For Doubtful Accounts [Member] | Notes Receivable [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | ' | ' |
(Reversal of) provision for credit losses | ' | ' | ' | ' | ' |
Ending Balance | ' | ' | ' | ' | ' |
Allowance For Doubtful Accounts [Member] | Direct Financing Leases [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | ' | ' |
(Reversal of) provision for credit losses | ' | ' | ' | ' | ' |
Ending Balance | ' | ' | ' | ' | ' |
Allowance For Doubtful Accounts [Member] | Operating Leases [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | 6 | 58 | 58 |
(Reversal of) provision for credit losses | ' | ' | -3 | ' | -52 |
Ending Balance | 3 | ' | 3 | ' | 6 |
Valuation Adjustments on Financing Receivables [Member] | Notes Receivable [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 2 | 2 |
(Reversal of) provision for credit losses | ' | ' | ' | ' | 8 |
Ending Balance | 10 | ' | 10 | ' | 10 |
Valuation Adjustments on Financing Receivables [Member] | Direct Financing Leases [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | ' | ' |
(Reversal of) provision for credit losses | ' | ' | ' | ' | ' |
Ending Balance | ' | ' | ' | ' | ' |
Allowance_for_Credit_Losses_Re
Allowance for Credit Losses (Recorded Investment in Financing Receivables) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Allowances for credit losses: | ' | ' |
Ending balance | $10 | $10 |
Ending balance: individually evaluated for impairment | 10 | 10 |
Ending balance: collectively evaluated for impairment | ' | ' |
Ending balance: loans acquired with deteriorated credit quality | ' | ' |
Notes Receivable, Net [Abstract] | ' | ' |
Ending balance | 758 | 1,069 |
Ending balance: individually evaluated for impairment | 758 | 1,069 |
Ending balance: collectively evaluated for impairment | ' | ' |
Ending balance: loans acquired with deteriorated credit quality | ' | ' |
Notes Receivable [Member] | ' | ' |
Allowances for credit losses: | ' | ' |
Ending balance | 10 | 10 |
Ending balance: individually evaluated for impairment | 10 | 10 |
Ending balance: collectively evaluated for impairment | ' | ' |
Ending balance: loans acquired with deteriorated credit quality | ' | ' |
Notes Receivable, Net [Abstract] | ' | ' |
Ending balance | 590 | 769 |
Ending balance: individually evaluated for impairment | 590 | 769 |
Ending balance: collectively evaluated for impairment | ' | ' |
Ending balance: loans acquired with deteriorated credit quality | ' | ' |
Finance Leases [Member] | ' | ' |
Allowances for credit losses: | ' | ' |
Ending balance | ' | ' |
Ending balance: individually evaluated for impairment | ' | ' |
Ending balance: collectively evaluated for impairment | ' | ' |
Ending balance: loans acquired with deteriorated credit quality | ' | ' |
Notes Receivable, Net [Abstract] | ' | ' |
Ending balance | 168 | 300 |
Ending balance: individually evaluated for impairment | 168 | 300 |
Ending balance: collectively evaluated for impairment | ' | ' |
Ending balance: loans acquired with deteriorated credit quality | ' | ' |
Allowance_for_Credit_Losses_Fi
Allowance for Credit Losses (Financing Receivables by Credit Quality Indicator and Class) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Finance Leases | $168 | $300 |
Notes Receivable | 590 | 769 |
Pass [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Finance Leases | 168 | 274 |
Notes Receivable | 580 | ' |
Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Finance Leases | ' | 26 |
Notes Receivable | ' | 769 |
Substandard [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Finance Leases | ' | ' |
Notes Receivable | ' | ' |
Doubtful [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Finance Leases | ' | ' |
Notes Receivable | $10 | ' |
Allowance_for_Credit_Losses_Sc
Allowance for Credit Losses (Schedule of Impaired Loans) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Allowance for Credit Losses [Abstract] | ' | ' |
Notes receivable, With no allowance recorded, Recorded investment | ' | ' |
Notes receivable, With an allowance recorded, Recorded investment | 10 | 10 |
Recorded investment, Total | 10 | 10 |
Notes receivable, With no allowance recorded, Unpaid Principal Balance | ' | ' |
Notes receivable, With an allowance recorded, Unpaid Principal Balance | 10 | 10 |
Unpaid Principal Balance, Total | 10 | 10 |
Note Receivable, With no allowance recorded, Related Allowance | ' | ' |
Note Receivable, With an allowance recorded, Related Allowance | 10 | 10 |
Notes receivable, Related Allowance | 10 | 10 |
Notes receivable, With no allowance recorded, Average Recorded Investment | ' | ' |
Notes receivable, With an allowance recorded, Average Recorded Investment | 10 | 14 |
Impaired Financing Receivable, Average Recorded Investment, Total | 10 | 14 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | ' | ' |
Notes receivable, With an allowance recorded, Interest Income Recognized | ' | 4 |
Interest Income Recognized, Total | ' | $4 |
Allowance_for_Credit_Losses_Ne
Allowance for Credit Losses (Net Investment in Financing Receivables by Age) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ' | ' |
31-60 Days Past Due | ' | ' |
61-90 Days Past Due | ' | 33 |
Greater Than 90 Days | ' | ' |
Total Past Due | ' | 33 |
Current | 758 | 1,036 |
Total Financing Receivable | 758 | 1,069 |
Recorded Investment > 90 Days and Accruing | ' | ' |
Notes Receivable [Member] | ' | ' |
Financing Receivable Recorded Investment Past Due [Line Items] | ' | ' |
31-60 Days Past Due | ' | ' |
61-90 Days Past Due | ' | ' |
Greater Than 90 Days | ' | ' |
Total Past Due | ' | ' |
Current | 590 | 769 |
Total Financing Receivable | 590 | 769 |
Recorded Investment > 90 Days and Accruing | ' | ' |
Finance Leases [Member] | ' | ' |
Financing Receivable Recorded Investment Past Due [Line Items] | ' | ' |
31-60 Days Past Due | ' | ' |
61-90 Days Past Due | ' | 33 |
Greater Than 90 Days | ' | ' |
Total Past Due | ' | 33 |
Current | 168 | 267 |
Total Financing Receivable | 168 | 300 |
Recorded Investment > 90 Days and Accruing | ' | ' |
Investments_in_Equipment_and_L2
Investments in Equipment and Leases, Net (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Impairment losses on equipment | $39 | $221 | ' | $52 | $255 | $174 |
Depreciation of operating lease assets | 441 | 701 | 1,600 | 1,647 | 2,297 | ' |
Amortization of initial direct costs | $5 | $4 | ' | $15 | $17 | ' |
Average estimated residual value of assets on operating leases | 21.00% | ' | 21.00% | 21.00% | ' | 21.00% |
Minimum [Member] | ' | ' | ' | ' | ' | ' |
Financing leases, period for non accrual status | ' | ' | ' | '90 days | ' | ' |
Investments_in_Equipment_and_L3
Investments in Equipment and Leases, Net (Investment in Leases) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Leases Disclosure [Line Items] | ' | ' |
Balance December 31, 2012 | $11,245 | ' |
Reclassifications, Additions/ Dispositions | -857 | ' |
Depreciation/ Amortization Expense or Amortization of Leases | -1,797 | ' |
Balance September 30, 2013 | 8,591 | ' |
Initial direct costs, accumulated amortization | 83 | 80 |
Operating Leases [Member] | ' | ' |
Leases Disclosure [Line Items] | ' | ' |
Balance December 31, 2012 | 10,515 | ' |
Reclassifications, Additions/ Dispositions | -604 | ' |
Depreciation/ Amortization Expense or Amortization of Leases | -1,647 | ' |
Balance September 30, 2013 | 8,264 | ' |
Direct Financing Leases [Member] | ' | ' |
Leases Disclosure [Line Items] | ' | ' |
Balance December 31, 2012 | 300 | ' |
Reclassifications, Additions/ Dispositions | 3 | ' |
Depreciation/ Amortization Expense or Amortization of Leases | -135 | ' |
Balance September 30, 2013 | 168 | ' |
Assets Held-for-sale for Lease[Member] | ' | ' |
Leases Disclosure [Line Items] | ' | ' |
Balance December 31, 2012 | 371 | ' |
Reclassifications, Additions/ Dispositions | -256 | ' |
Balance September 30, 2013 | 115 | ' |
Initial Direct Cost [Member] | ' | ' |
Leases Disclosure [Line Items] | ' | ' |
Balance December 31, 2012 | 59 | ' |
Depreciation/ Amortization Expense or Amortization of Leases | -15 | ' |
Balance September 30, 2013 | $44 | ' |
Investments_in_Equipment_and_L4
Investments in Equipment and Leases, Net (Property on Operating Leases) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2012 | $10,515 |
Additions | -1,647 |
Reclassifications, Dispositions and Impairment Losses | -604 |
Balance September 30, 2013 | 8,264 |
Transportation, Rail [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2012 | 11,626 |
Additions | ' |
Reclassifications, Dispositions and Impairment Losses | -220 |
Balance September 30, 2013 | 11,406 |
Transportation, Other [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2012 | 6,086 |
Additions | ' |
Reclassifications, Dispositions and Impairment Losses | -1,677 |
Balance September 30, 2013 | 4,409 |
Mining [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2012 | 2,893 |
Additions | ' |
Reclassifications, Dispositions and Impairment Losses | ' |
Balance September 30, 2013 | 2,893 |
Materials Handling [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2012 | 6,089 |
Additions | ' |
Reclassifications, Dispositions and Impairment Losses | -3,269 |
Balance September 30, 2013 | 2,820 |
Aviation [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2012 | 1,658 |
Additions | ' |
Reclassifications, Dispositions and Impairment Losses | ' |
Balance September 30, 2013 | 1,658 |
Marine Vessels [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2012 | 1,415 |
Additions | ' |
Reclassifications, Dispositions and Impairment Losses | ' |
Balance September 30, 2013 | 1,415 |
Manufacturing [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2012 | 898 |
Additions | ' |
Reclassifications, Dispositions and Impairment Losses | -140 |
Balance September 30, 2013 | 758 |
Construction [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2012 | 953 |
Additions | ' |
Reclassifications, Dispositions and Impairment Losses | -123 |
Balance September 30, 2013 | 830 |
Other Properties [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2012 | 4 |
Additions | ' |
Reclassifications, Dispositions and Impairment Losses | 7 |
Balance September 30, 2013 | 11 |
Total Property Subject To Or Available For Operating Lease [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2012 | 31,622 |
Additions | ' |
Reclassifications, Dispositions and Impairment Losses | -5,422 |
Balance September 30, 2013 | 26,200 |
Less Accumulated Depreciation [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Balance December 31, 2012 | -21,107 |
Additions | -1,647 |
Reclassifications, Dispositions and Impairment Losses | 4,818 |
Balance September 30, 2013 | ($17,936) |
Investments_in_Equipment_and_L5
Investments in Equipment and Leases, Net (Components of Investment in Direct Financing Leases) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments in Equipment and Leases, Net [Abstract] | ' | ' |
Total minimum lease payments receivable | $193 | $325 |
Estimated residual values of leased equipment (unguaranteed) | 30 | 60 |
Investment in direct financing leases | 223 | 385 |
Less unearned income | -55 | -85 |
Net investment in direct financing leases | $168 | $300 |
Investments_in_Equipment_and_L6
Investments in Equipment and Leases, Net (Future Minimum Lease Payments Receivable) (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Operating Leases | ' |
Three months ending December 31, 2013 | $806 |
Year ending December 31, 2014 | 2,308 |
2015 | 1,245 |
2016 | 557 |
2017 | 485 |
2018 | 115 |
Thereafter | 25 |
Operating Leases, Future Minimum Payments Receivable, Total | 5,541 |
Direct Financing Leases | ' |
Three months ending December 31, 2013 | 40 |
Year ending December 31, 2014 | 96 |
2015 | 46 |
2016 | 11 |
2017 | ' |
2018 | ' |
Capital Leases, Future Minimum Payments Receivable, Total | 193 |
Total | ' |
Three months ending December 31, 2013 | 846 |
Year ending December 31, 2014 | 2,404 |
2015 | 1,291 |
2016 | 568 |
2017 | 485 |
2018 | 115 |
Thereafter | 25 |
Operating and Capital Leases, Future Minimum Payments, Receivable, Total | $5,734 |
Related_Party_Transactions_Aff
Related Party Transactions (Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Related Party Transactions [Abstract] | ' | ' | ' | ' |
Costs reimbursed to Managing Member and/or affiliates | $81 | $96 | $242 | $312 |
Asset management fees to Managing Member and/or affiliates | 51 | 79 | 181 | 251 |
Acquisition and initial direct costs paid to Managing Member | ' | 30 | ' | 42 |
Related Party Transaction, Expenses from Transactions with Related Party, Total | $132 | $205 | $423 | $605 |
NonRecourse_Debt_Narrative_Det
Non-Recourse Debt (Narrative) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Gross operating lease rentals and future payments on direct financing leases | 2.5 |
Carrying value of pledged assets | 5.2 |
Maximum [Member] | ' |
Fixed Interest rate on note | 5.95% |
Note maturity year | '2015 |
Minimum [Member] | ' |
Fixed Interest rate on note | 4.40% |
Note maturity year | '2014 |
NonRecourse_Debt_Future_Minimu
Non-Recourse Debt (Future Minimum Payments of Non-Recourse Debt) (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Principal | ' |
Three months ending December 31, 2013 | $430 |
Year ending December 31, 2014 | 1,313 |
2015 | 639 |
Long-term Debt, Total | 2,382 |
Interest | ' |
Three months ending December 31, 2013 | 30 |
Year ending December 31, 2014 | 73 |
2015 | 17 |
Long Term Debt Interest, Total | 120 |
Total | ' |
Three months ending December 31, 2013 | 460 |
Year ending December 31, 2014 | 1,386 |
2015 | 656 |
Long Term Debt Principal and Interest, Total | $2,502 |
Borrowing_Facilities_Narrative
Borrowing Facilities (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Borrowing Facilities [Abstract] | ' | ' |
Maximum amount of credit facility | ' | $60,000,000 |
Outstanding borrowings under facility | $0 | ' |
Commitments_Narrative_Details
Commitments (Narrative) (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Commitments [Abstract] | ' |
Commitments to purchase lease assets or fund loans | $0 |
Members_Capital_Narrative_Deta
Members' Capital (Narrative) (Details) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Members' Capital [Abstract] | ' | ' |
Other Members capital account, units issued | 5,209,307 | 5,209,307 |
Other Members capital account, units outstanding | 5,209,307 | 5,209,307 |
Other Members capital account, units authorized | 15,000,000 | 15,000,000 |
Potential repurchase price of Units as percentage of holder's capital account | 100.00% | ' |
Members_Capital_Distributions_
Members' Capital (Distributions to Other Members) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Members' Capital [Abstract] | ' | ' | ' | ' | ' |
Distributions | ' | $1,205 | $2,409 | $3,614 | $4,819 |
Weighted average number of Units outstanding | 5,209,307 | 5,209,307 | 5,209,307 | 5,209,307 | ' |
Weighted average distributions per Unit | ' | $0.23 | $0.46 | $0.69 | $0.93 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Mar. 31, 2012 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets or liabilities requiring measurement at fair value on a recurring basis | ' | ' | ' | ' | ' | $0 | ' | $0 | ' | ' |
Impairment losses on equipment | 39 | 221 | ' | ' | ' | 52 | 255 | 174 | ' | ' |
Percentage of fair value adjustments | ' | ' | 66.00% | ' | ' | ' | ' | ' | ' | ' |
Impairment losses on investment securities | ' | ' | 32 | ' | 32 | ' | 32 | 40 | 8 | 8 |
Fair value adjustment on lease equipment (assets) | 39 | ' | ' | 13 | ' | 0 | ' | 0 | ' | ' |
Fair value adjustments related to impaired notes receivable | $0 | ' | ' | ' | ' | $0 | ' | ' | ' | ' |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value Measurement of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired lease and off-lease equipment | $19 | $405 |
Impaired investment securities | ' | 24 |
Level 1 Estimated Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired lease and off-lease equipment | ' | ' |
Impaired investment securities | ' | ' |
Level 2 Estimated Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired lease and off-lease equipment | ' | ' |
Impaired investment securities | ' | ' |
Level 3 Estimated Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired lease and off-lease equipment | 19 | 405 |
Impaired investment securities | ' | $24 |
Fair_Value_Measurements_Summar
Fair Value Measurements (Summary Valuation Techniques and Significant Unobservable Inputs Used) (Details) (USD $) | Sep. 30, 2013 |
Fair Value Measurements [Abstract] | ' |
Fair value inputs, third party agents' pricing quotes per equipment | $600 |
Fair value inputs third party agents' pricing quotes, total | $18,600 |
Fair_Value_Measurements_Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets: | ' | ' |
Cash and cash equivalents | $725 | $1,502 |
Notes receivable, net | 580 | 759 |
Investment in securities | 219 | 219 |
Financial liabilities: | ' | ' |
Non-recourse debt | 2,463 | 3,807 |
Level 1 Estimated Fair Value [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 725 | 1,502 |
Notes receivable, net | ' | ' |
Investment in securities | ' | ' |
Financial liabilities: | ' | ' |
Non-recourse debt | ' | ' |
Level 2 Estimated Fair Value [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | ' | ' |
Notes receivable, net | ' | ' |
Investment in securities | ' | ' |
Financial liabilities: | ' | ' |
Non-recourse debt | ' | ' |
Level 3 Estimated Fair Value [Member] | ' | ' |
Financial assets: | ' | ' |
Notes receivable, net | 580 | 759 |
Investment in securities | 219 | 219 |
Financial liabilities: | ' | ' |
Non-recourse debt | 2,463 | 3,807 |
Carrying Amount [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 725 | 1,502 |
Notes receivable, net | 580 | 759 |
Investment in securities | 219 | 219 |
Financial liabilities: | ' | ' |
Non-recourse debt | $2,382 | $3,651 |