Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | ATEL CAPITAL EQUIPMENT FUND XI, LLC | |
Entity Central Index Key | 1,297,667 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Units Outstanding | 5,209,307 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 761 | $ 1,932 |
Accounts receivable, net | 115 | 111 |
Investment in securities | 22 | 22 |
Investments in equipment and leases, net | 1,805 | 2,004 |
Prepaid expenses and other assets | 26 | 32 |
Total assets | 2,729 | 4,101 |
Accounts payable and accrued liabilities: | ||
Managing Member | 68 | 31 |
Accrued distributions to Other Members | 521 | |
Other | 56 | 78 |
Unearned operating lease income | 14 | 13 |
Total liabilities | 659 | 122 |
Commitments and contingencies | ||
Members' capital: | ||
Managing Member | ||
Other Members | 2,070 | 3,979 |
Total Members' capital | 2,070 | 3,979 |
Total liabilities and Members' capital | $ 2,729 | $ 4,101 |
Statements of Income
Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Leasing and lending activities: | ||||
Operating leases | $ 255 | $ 298 | $ 499 | $ 618 |
Direct financing leases | 1 | 2 | ||
Gain on sales of lease assets | 24 | 19 | 38 | 289 |
Unrealized loss on fair value adjustments for warrants | (17) | |||
Other | 1 | 1 | 3 | 4 |
Total revenues | 280 | 319 | 540 | 896 |
Expenses: | ||||
Depreciation of operating lease assets | 76 | 99 | 153 | 202 |
Asset management fees to Managing Member | 15 | 17 | 25 | 49 |
Cost reimbursements to Managing Member and/or affiliates | 47 | 33 | 99 | 66 |
Provision for (reversal of) credit losses | 9 | 8 | (1) | |
Provision for losses on investment in securities | 16 | |||
Amortization of initial direct costs | 2 | 2 | 4 | 4 |
Professional fees | 45 | 14 | 101 | 94 |
Outside services | 23 | 10 | 48 | 25 |
Taxes on income and franchise fees | 6 | 13 | ||
Printing and photocopying | 3 | 7 | 3 | |
Other | 6 | 6 | 17 | 13 |
Total operating expenses | 232 | 181 | 475 | 471 |
Other income, net | 1 | 2 | 1 | |
Net income | 49 | 138 | 67 | 426 |
Net income (loss): | ||||
Managing Member | 42 | 105 | 148 | 105 |
Other Members | 7 | 33 | (81) | 321 |
Net income | $ 49 | $ 138 | $ 67 | $ 426 |
Net income (loss) per Limited Liability Company Unit (Other Members) | $ 0 | $ 0.01 | $ (0.02) | $ 0.06 |
Weighted average number of Units outstanding | 5,209,307 | 5,209,307 | 5,209,307 | 5,209,307 |
Statements of Changes in Member
Statements of Changes in Members' Capital - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Beginning Balance (in Units) | 5,209,307 | |||
Beginning Balance | $ 3,979 | $ 4,593 | $ 4,593 | |
Distributions to Other Members | $ (523) | (1,828) | (1,303) | (1,303) |
Distributions to Managing Member | (148) | (105) | ||
Net (loss) income | $ 49 | $ 67 | $ 426 | $ 794 |
Ending Balance (in Units) | 5,209,307 | 5,209,307 | 5,209,307 | |
Ending Balance | $ 2,070 | $ 2,070 | $ 3,979 | |
Other Members [Member] | ||||
Beginning Balance (in Units) | 5,209,307 | 5,209,307 | 5,209,307 | |
Beginning Balance | $ 3,979 | $ 4,593 | $ 4,593 | |
Distributions to Other Members | (1,828) | (1,303) | ||
Net (loss) income | $ (81) | $ 689 | ||
Ending Balance (in Units) | 5,209,307 | 5,209,307 | 5,209,307 | |
Ending Balance | $ 2,070 | $ 2,070 | $ 3,979 | |
Managing Member [Member] | ||||
Distributions to Managing Member | (148) | (105) | ||
Net (loss) income | $ 148 | $ 105 |
Statements of Changes in Membe5
Statements of Changes in Members' Capital (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Statements of Changes in Members' Capital [Abstract] | |||||
Weighted average distributions per Unit | $ 0.10 | $ 0.25 | $ 0.35 | $ 0.25 | $ 0.25 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities: | ||||
Net income | $ 49 | $ 138 | $ 67 | $ 426 |
Adjustments to reconcile net income to cash provided by operating activities: | ||||
Gain on sales of lease assets | (24) | (19) | (38) | (289) |
Depreciation of operating lease assets | 76 | 99 | 153 | 202 |
Amortization of initial direct costs | 2 | 2 | 4 | 4 |
Provision for (reversal of) credit losses | 9 | 8 | (1) | |
Provision for losses on investment in securities | 16 | |||
Unrealized loss on fair value adjustment for warrants | 17 | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | 47 | 48 | (12) | 36 |
Prepaid expenses and other assets | 2 | 2 | 6 | 5 |
Accounts payable, Managing Member | (29) | (55) | (5) | (12) |
Accounts payable, other | (6) | (27) | (22) | (21) |
Unearned operating lease income | (130) | (125) | 1 | 6 |
Net cash provided by operating activities | (4) | 63 | 162 | 389 |
Investing activities: | ||||
Proceeds from sales of lease assets | 36 | 90 | 80 | 377 |
Principal payments received on direct financing leases | 3 | 6 | ||
Net cash provided by investing activities | 36 | 93 | 80 | 383 |
Financing activities: | ||||
Net cash used in financing activities | (2) | (1,413) | (1,408) | |
Net increase (decrease) in cash and cash equivalents | 30 | 156 | (1,171) | (636) |
Cash and cash equivalents at beginning of period | 731 | 2,340 | 1,932 | 3,132 |
Cash and cash equivalents at end of period | 761 | 2,496 | 761 | 2,496 |
Supplemental disclosures of cash flow information: | ||||
Cash paid during the period for taxes | 20 | 21 | 26 | 21 |
Other Members [Member] | ||||
Operating activities: | ||||
Net income | (81) | |||
Financing activities: | ||||
Distributions to Members | (2) | (1,307) | (1,303) | |
Schedule of non-cash transactions: | ||||
Distributions payable at period-end | 521 | 1,303 | 521 | 1,303 |
Managing Member [Member] | ||||
Operating activities: | ||||
Net income | 148 | |||
Financing activities: | ||||
Distributions to Members | (106) | (105) | ||
Schedule of non-cash transactions: | ||||
Distributions payable at period-end | $ 42 | $ 105 | $ 42 | $ 105 |
Organization and Limited Liabil
Organization and Limited Liability Company Matters | 6 Months Ended |
Jun. 30, 2017 | |
Organization and Limited Liability Company Matters [Abstract] | |
Organization and Limited Liability Company Matters | 1. Organization and Limited Liability Company matters: ATEL Capital Equipment Fund 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 t he 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. 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 June 30, 2017 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 June 30 , 2017, 5,209,307 Units were issued and outstanding . 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 and its affiliates receives compensation for services rendered and reimbursements for costs incurred on behalf of the Company (See Note 4 ). 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, 2016 , filed with the Securities and Exchange Commission. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2 . Summary of significant accounting policies: Basis of presentation: The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results to be expected for the full year. Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying unaudited financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after June 30, 2017 up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, or adjustments thereto. Use of estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and for determination of the allowance for doubtful accounts. Segment reporting: The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States. The primary geographic regions in which the Company seeks leasing opportunities are North America and Europe . The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the six months ended June 30, 2017 and 2016 and long-lived assets as of June 30, 2017 and December 31, 2016 (dollars in thousands): For The Six Months Ended June 30, 2017 % of Total 2016 % of Total Revenue United States $ 533 99% $ 886 99% United Kingdom 7 1% 10 1% Total $ 540 100% $ 896 100% As of June 30, December 31, 2017 % of Total 2016 % of Total Long-lived assets United States $ 1,803 100% $ 2,002 100% United Kingdom 2 0% 2 0% Total $ 1,805 100% $ 2,004 100% 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 adjustments were recorded during the three months ended June 30, 2017 and 2016, and fair value adjustments of $0 and $16 thousand were recorded during the six months ended June 30, 2017 and 2016, respectively, to reduce the cost basis of an impaired investment security to zero. There were no sales or dispositions of investments in securities during the three and six months ended June 30, 2017 and 2016. Warrants Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet as determined by the Managing Member. During the three months ended June 30, 2017 and 2016, no unrealized losses were recorded and during the six months ended June 30, 2017 and 2016, the Company recorded unrealized losses of $0 and $17 thousand, respectively, to adjust its warrants to fair value. As of June 30, 2017 and December 31, 2016, the Company had no portfolio of warrants. There were no exercises of warrants, net or otherwise, during the six months ended June 30, 2017 and 2016. 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. Per Unit data: The Company issues only one class of Units, none of which are considered dilutive. Net income and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the period. Fair Value: Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, generally on a national exchange. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market. Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company's own estimates of assumptions that market participants would use in pricing the asset or liability. The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, information from third party remarketing agents, third party appraisals of collateral and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources. Recent accounting pronouncements: In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-15 —Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 addresses specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. Management is currently evaluating the standard and its impact on operations and financial reporting. The adoption of ASU 2016-15 by the Company is not expected to have a material effect on its financial statements. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. Management is currently evaluating the standard and expects the Update may potentially result in an increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new standard will require lessees to recognize lease assets and lease liabilities arising from operating leases with lease terms greater than 12 months in the statement of financial position. Lessor accounting per ASU 2016-02 is mostly unchanged from the previous lease accounting GAAP. Certain changes were made to the lessor accounting guidance in order to align the lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Similar to the previous guidance, lessors will classify leases as operating, direct financing, or sales-type. Lessors in operating leases will continue to recognize the underlying asset and recognize income on a straight-line basis. Lessors determine whether a lease is a sale of the underlying asset based on whether the lessee effectively obtains control of the underlying assets. ASU-2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. While early adoption is permitted, the Company does not expect to elect that option. The Company expects to adopt the guidance in the first quarter 2019 using the modified retrospective method. Management is currently evaluating the impact of this standard on the financial statements and its operational and related disclosure requirements, including the impact on the Company’s current lease portfolio from a lessor perspective. Given the limited changes to lessor accounting, the Company does not expect material changes to recognition or measurement, but we are early in the implementation process and will continue to evaluate the impact. This adoption will primarily result in an increase in the assets and liabilities on the Company’s balance sheet. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The new standard provides guidance related to accounting for equity investments and financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (v) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management is currently evaluating the standard and its operational and related disclosure requirements. The Company’s implementation efforts include the identification of equity securities within the scope of the guidance, the evaluation of the measurement alternative available for equity securities without a readily determinable fair value, and the related impact to accounting policies, presentation and disclosures. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company expects to adopt the Standards Update. A preliminary evaluation of the impact of such adoption on the financial statements of the Fund indicates that such impact is virtually non-existent as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues. Management expects that accounting policies will not materially change since the principles of revenue recognition from the standard are largely consistent with existing guidance and current practices applied by the Company. |
Investment in Equipment and Lea
Investment in Equipment and Leases, Net | 6 Months Ended |
Jun. 30, 2017 | |
Investment in Equipment and Leases, Net [Abstract] | |
Investment in Equipment and Leases, Net | 3 . Investment in equipment and leases, net: The Company’s investment in leases consists of the following (in thousands): Depreciation/ Amortization Balance Reclassifications, Expense or Balance December 31, Additions/ Amortization June 30, 2016 Dispositions of Leases 2017 Net investment in operating leases $ 1,996 $ (41) $ (153) $ 1,802 Assets held for sale or lease, net 1 (1) - - Initial direct costs, net of accumulated amortization of $40 at June 30, 2017 and $36 at December 31, 2016 7 - (4) 3 Total $ 2,004 $ (42) $ (157) $ 1,805 Impairment of investments in leases and assets held for sale or lease: Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the Company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract, if any. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances. As a result of these reviews, management determined that no impairment losses existed during the three and six months ended June 30, 2017 and 2016 . The Company utilizes a straight line depreciation method for equipment in all of the categories currently in its portfolio of operating lease transactions. Depreciation expense on the Company’s equipment totaled $7 6 thousand and $99 thousand for the respective three months ended June 30, 2017 and 2016, and totaled $153 thousand and $202 thousand for the respective six months ended June 30, 2017 and 2016 . Initial direct costs amortization expense related to the Company’s operating and direct financing leases amounted to $2 thousand each for the respective three months ended June 30, 2017 and 2016, and $4 thousand each for the respective six months ended June 30, 2017 and 2016 . 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 Balance December 31, Reclassifications or June 30, 2016 Additions Dispositions 2017 Transportation, rail $ 8,499 $ - $ (351) $ 8,148 Aviation 1,658 - - 1,658 Marine vessels 1,415 - - 1,415 Transportation, other 1,349 - - 1,349 Materials handling 156 - (65) 91 Manufacturing 10 - - 10 13,087 - (416) 12,671 Less accumulated depreciation (11,091) (153) 375 (10,869) Total $ 1,996 $ (153) $ (41) $ 1,802 The average estimated residual value for assets on operating leases was 8% of the assets’ original cost at both June 30, 2017 and December 31, 2016 . There were no operating lease contracts placed in non-accrual status at June 30, 2017 and December 31, 2016 . At June 30 , 2017, the aggregate amounts of future minimum lease payments to be received are as follows (in thousands): Operating Leases Six months ending December 31, 2017 $ 434 Year ending December 31, 2018 421 2019 315 2020 260 2021 77 $ 1,507 The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of June 30 , 2017, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years): Equipment category Useful Life Transportation, rail 35-40 Marine vessels 20-30 Aviation 15-20 Manufacturing 10-15 Materials handling 7-10 Transportation, other 7-10 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 4 . Related party transactions: The terms of the Operating Agreement provide that AFS and/or affiliates are entitled to receive certain fees for equipment management and resale, and for management of the Company. The Operating Agreement allows for the reimbursement of costs incurred by AFS 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 June 30, 2017 , the Company has not exceeded the annual and/or cumulative limitations discussed above. AFS and/or affiliates earned fees and billed for reimbursements of costs and expenses pursuant to the Operating Agreement as follows during the three and six months ended June 30 , 2017 and 2016 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Costs reimbursed to Managing Member and/or affiliates $ 47 $ 33 $ 99 $ 66 Asset management fees to Managing Member 15 17 25 49 $ 62 $ 50 $ 124 $ 115 |
Commitments
Commitments | 6 Months Ended |
Jun. 30, 2017 | |
Commitments [Abstract] | |
Commitments | 5 . Commitments: At June 30, 2017 , the Company had no commitments to either purchase lease assets or fund loans. |
Members' Capital
Members' Capital | 6 Months Ended |
Jun. 30, 2017 | |
Members' Capital [Abstract] | |
Members' Capital | 6 . Members’ capital: A total of 5,209,307 Units were issued and outstanding as of June 30, 2017 and December 31, 2016 . The Fund was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial members ( 50 Units). The Company terminated the sales of Units effective April 30, 2006. Distributions to the Other Members were as follows (in thousands, except as to Units and per Unit data): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Distributions $ 523 $ 1,303 $ 1,828 $ 1,303 Weighted average number of Units outstanding 5,209,307 5,209,307 5,209,307 5,209,307 Weighted average distributions per Unit $ 0.10 $ 0.25 $ 0.35 $ 0.25 The regular 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 | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 7 . Fair value measurements: At June 30, 2017 and December 31, 2016, only the Company’s warrants were measured on a recurring basis and the calculated fair value of the Company’s warrant portfolio was $0 at both June 30, 2017 and December 31, 2016. In addition, certain investment securities deemed impaired were measured at fair value on a non-recurring basis as of June 30, 2017 and December 31, 2016 . Such fair value adjustments utilized the following methodology: Impaired investment securities (non-recurring) The Company’s investment securities are not registered for public sale and are carried at cost. The investment securities are adjusted for 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. During both the three months ended June 30, 2017 and 2016, the Company recorded non-recurring fair value adjustments of $0 , and during the six months ended June 30, 2017 and 2016, the Company recorded $0 a nd $16 thousand , respectively, to the Company’s investment in securities to reduce the cost basis of an impaired investment security to zero. The reduction in value was based on a market approach technique and uses inputs that reflect qualitative and quantitative information provided by the management of the investee . Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of the aforementioned impaired investment securities were classified within Level 3 of the valuation hierarchy . 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. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize or has realized in a current market exchange. 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. Contingencies The fair value of contingent liabilities (or guarantees) is not considered material because management believes there has been no event that has occurred wherein a guarantee liability has been incurred or will likely be incurred. The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at June 30 , 2017 and December 31, 2016 (in thousands): Fair Value Measurements at June 30, 2017 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 761 $ 761 $ - $ - $ 761 Investment in securities 22 - - 22 22 Fair Value Measurements at December 31, 2016 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,932 $ 1,932 $ - $ - $ 1,932 Investment in securities 22 - - 22 22 |
Summary of Significant Accoun14
Summary of Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation: The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results to be expected for the full year. Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying unaudited financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after June 30, 2017 up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, or adjustments thereto. |
Use of Estimates | Use of estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and for determination of the allowance for doubtful accounts. |
Segment Reporting | Segment reporting: The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States. The primary geographic regions in which the Company seeks leasing opportunities are North America and Europe . The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the six months ended June 30, 2017 and 2016 and long-lived assets as of June 30, 2017 and December 31, 2016 (dollars in thousands): For The Six Months Ended June 30, 2017 % of Total 2016 % of Total Revenue United States $ 533 99% $ 886 99% United Kingdom 7 1% 10 1% Total $ 540 100% $ 896 100% As of June 30, December 31, 2017 % of Total 2016 % of Total Long-lived assets United States $ 1,803 100% $ 2,002 100% United Kingdom 2 0% 2 0% Total $ 1,805 100% $ 2,004 100% |
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 adjustments were recorded during the three months ended June 30, 2017 and 2016, and fair value adjustments of $0 and $16 thousand were recorded during the six months ended June 30, 2017 and 2016, respectively, to reduce the cost basis of an impaired investment security to zero. There were no sales or dispositions of investments in securities during the three and six months ended June 30, 2017 and 2016. Warrants Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet as determined by the Managing Member. During the three months ended June 30, 2017 and 2016, no unrealized losses were recorded and during the six months ended June 30, 2017 and 2016, the Company recorded unrealized losses of $0 and $17 thousand, respectively, to adjust its warrants to fair value. As of June 30, 2017 and December 31, 2016, the Company had no portfolio of warrants. There were no exercises of warrants, net or otherwise, during the six months ended June 30, 2017 and 2016. |
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. |
Per Unit Data | Per Unit data: The Company issues only one class of Units, none of which are considered dilutive. Net income and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the period. |
Fair Value | Fair Value: Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, generally on a national exchange. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market. Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company's own estimates of assumptions that market participants would use in pricing the asset or liability. The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, information from third party remarketing agents, third party appraisals of collateral and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources. |
Recent Accounting Pronouncements | Recent accounting pronouncements: In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-15 —Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 addresses specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. Management is currently evaluating the standard and its impact on operations and financial reporting. The adoption of ASU 2016-15 by the Company is not expected to have a material effect on its financial statements. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. Management is currently evaluating the standard and expects the Update may potentially result in an increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new standard will require lessees to recognize lease assets and lease liabilities arising from operating leases with lease terms greater than 12 months in the statement of financial position. Lessor accounting per ASU 2016-02 is mostly unchanged from the previous lease accounting GAAP. Certain changes were made to the lessor accounting guidance in order to align the lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Similar to the previous guidance, lessors will classify leases as operating, direct financing, or sales-type. Lessors in operating leases will continue to recognize the underlying asset and recognize income on a straight-line basis. Lessors determine whether a lease is a sale of the underlying asset based on whether the lessee effectively obtains control of the underlying assets. ASU-2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. While early adoption is permitted, the Company does not expect to elect that option. The Company expects to adopt the guidance in the first quarter 2019 using the modified retrospective method. Management is currently evaluating the impact of this standard on the financial statements and its operational and related disclosure requirements, including the impact on the Company’s current lease portfolio from a lessor perspective. Given the limited changes to lessor accounting, the Company does not expect material changes to recognition or measurement, but we are early in the implementation process and will continue to evaluate the impact. This adoption will primarily result in an increase in the assets and liabilities on the Company’s balance sheet. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The new standard provides guidance related to accounting for equity investments and financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (v) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management is currently evaluating the standard and its operational and related disclosure requirements. The Company’s implementation efforts include the identification of equity securities within the scope of the guidance, the evaluation of the measurement alternative available for equity securities without a readily determinable fair value, and the related impact to accounting policies, presentation and disclosures. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company expects to adopt the Standards Update. A preliminary evaluation of the impact of such adoption on the financial statements of the Fund indicates that such impact is virtually non-existent as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues. Management expects that accounting policies will not materially change since the principles of revenue recognition from the standard are largely consistent with existing guidance and current practices applied by the Company. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue and Long-Lived Assets | The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the six months ended June 30, 2017 and 2016 and long-lived assets as of June 30, 2017 and December 31, 2016 (dollars in thousands): For The Six Months Ended June 30, 2017 % of Total 2016 % of Total Revenue United States $ 533 99% $ 886 99% United Kingdom 7 1% 10 1% Total $ 540 100% $ 896 100% As of June 30, December 31, 2017 % of Total 2016 % of Total Long-lived assets United States $ 1,803 100% $ 2,002 100% United Kingdom 2 0% 2 0% Total $ 1,805 100% $ 2,004 100% |
Investment in Equipment and L16
Investment in Equipment and Leases, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investment in Equipment and Leases, Net [Abstract] | |
Investment in Leases | The Company’s investment in leases consists of the following (in thousands): Depreciation/ Amortization Balance Reclassifications, Expense or Balance December 31, Additions/ Amortization June 30, 2016 Dispositions of Leases 2017 Net investment in operating leases $ 1,996 $ (41) $ (153) $ 1,802 Assets held for sale or lease, net 1 (1) - - Initial direct costs, net of accumulated amortization of $40 at June 30, 2017 and $36 at December 31, 2016 7 - (4) 3 Total $ 2,004 $ (42) $ (157) $ 1,805 |
Property on Operating Leases | Property on operating leases consists of the following (in thousands): Balance Balance December 31, Reclassifications or June 30, 2016 Additions Dispositions 2017 Transportation, rail $ 8,499 $ - $ (351) $ 8,148 Aviation 1,658 - - 1,658 Marine vessels 1,415 - - 1,415 Transportation, other 1,349 - - 1,349 Materials handling 156 - (65) 91 Manufacturing 10 - - 10 13,087 - (416) 12,671 Less accumulated depreciation (11,091) (153) 375 (10,869) Total $ 1,996 $ (153) $ (41) $ 1,802 |
Future Minimum Lease Payments Receivable | At June 30 , 2017, the aggregate amounts of future minimum lease payments to be received are as follows (in thousands): Operating Leases Six months ending December 31, 2017 $ 434 Year ending December 31, 2018 421 2019 315 2020 260 2021 77 $ 1,507 |
Schedule of Useful Lives of Assets | The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of June 30 , 2017, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years): Equipment category Useful Life Transportation, rail 35-40 Marine vessels 20-30 Aviation 15-20 Manufacturing 10-15 Materials handling 7-10 Transportation, other 7-10 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement | AFS and/or affiliates earned fees and billed for reimbursements of costs and expenses pursuant to the Operating Agreement as follows during the three and six months ended June 30 , 2017 and 2016 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Costs reimbursed to Managing Member and/or affiliates $ 47 $ 33 $ 99 $ 66 Asset management fees to Managing Member 15 17 25 49 $ 62 $ 50 $ 124 $ 115 |
Members' Capital (Tables)
Members' Capital (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Members' Capital [Abstract] | |
Distributions to Other Members | Distributions to the Other Members were as follows (in thousands, except as to Units and per Unit data): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Distributions $ 523 $ 1,303 $ 1,828 $ 1,303 Weighted average number of Units outstanding 5,209,307 5,209,307 5,209,307 5,209,307 Weighted average distributions per Unit $ 0.10 $ 0.25 $ 0.35 $ 0.25 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Measurements [Abstract] | |
Estimated Fair Values of Financial Instruments | The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at June 30 , 2017 and December 31, 2016 (in thousands): Fair Value Measurements at June 30, 2017 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 761 $ 761 $ - $ - $ 761 Investment in securities 22 - - 22 22 Fair Value Measurements at December 31, 2016 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,932 $ 1,932 $ - $ - $ 1,932 Investment in securities 22 - - 22 22 |
Organization and Limited Liab20
Organization and Limited Liability Company Matters (Narrative) (Details) - USD ($) $ in Thousands | Jul. 13, 2005 | Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||
Business cessation date | Dec. 31, 2025 | |||
Sale of Limited Liability Company Units, number of Units | 958,274 | |||
Proceeds from sale of Limited Liability Company Units | $ 9,600 | |||
Contribution of rescissions | $ 52,200 | |||
Gross contributions from Other Members | 52,800 | |||
Repurchase of Units, value | $ 636 | |||
Units issued | 5,209,307 | 5,209,307 | 5,209,307 | |
Units outstanding | 5,209,307 | 5,209,307 | 5,209,307 | |
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 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | |
Summary of Significant Accounting Policies [Abstract] | ||||
Number of operating segments | segment | 1 | |||
Number of reportable segments | segment | 1 | |||
Provision for losses on investment in securities | $ 16 | |||
Unrealized losses relative to the revaluation of the warrants | (17) | |||
Gain (loss) on exercise of warrants | $ 0 | 0 | ||
Securities sold or disposed of | $ 0 | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue and Long-Lived Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 280 | $ 319 | $ 540 | $ 896 | |
Percentage of total revenue | 100.00% | 100.00% | |||
Long-lived assets | $ 1,805 | $ 1,805 | $ 2,004 | ||
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 | $ 533 | $ 886 | |||
Percentage of total revenue | 99.00% | 99.00% | |||
Long-lived assets | $ 1,803 | $ 1,803 | $ 2,002 | ||
Percentage of long-lived assets | 100.00% | 100.00% | 100.00% | ||
United Kingdom [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 7 | $ 10 | |||
Percentage of total revenue | 1.00% | 1.00% | |||
Long-lived assets | $ 2 | $ 2 | $ 2 | ||
Percentage of long-lived assets | 0.00% | 0.00% | 0.00% |
Investment in Equipment and L23
Investment in Equipment and Leases, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Investment in Equipment and Leases, Net [Abstract] | |||||
Depreciation of operating lease assets | $ 76 | $ 99 | $ 153 | $ 202 | |
Amortization of initial direct costs | $ 2 | $ 2 | $ 4 | $ 4 | |
Average estimated residual value of assets on operating leases | 8.00% | 8.00% | 8.00% |
Investment in Equipment and L24
Investment in Equipment and Leases, Net (Investment in Leases) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Leases Disclosure [Line Items] | ||
Balance December 31, 2016 | $ 2,004 | |
Reclassifications, Additions/Dispositions | (42) | |
Depreciation/Amortization Expense or Amortization of Leases | (157) | |
Balance June 30, 2017 | 1,805 | |
Initial direct costs, accumulated amortization | 40 | $ 36 |
Operating Leases [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2016 | 1,996 | |
Reclassifications, Additions/Dispositions | (41) | |
Depreciation/Amortization Expense or Amortization of Leases | (153) | |
Balance June 30, 2017 | 1,802 | |
Assets Held-for-sale or Lease [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2016 | 1 | |
Reclassifications, Additions/Dispositions | (1) | |
Initial Direct Cost [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2016 | 7 | |
Depreciation/Amortization Expense or Amortization of Leases | (4) | |
Balance June 30, 2017 | $ 3 |
Investment in Equipment and L25
Investment in Equipment and Leases, Net (Property on Operating Leases) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 12,671 | $ 13,087 |
Less accumulated depreciation | (10,869) | (11,091) |
Property on operating leases, net | 1,802 | 1,996 |
Additions, gross | ||
Additions, less accumulated depreciation | (153) | |
Additions, net | (153) | |
Reclassifications or dispositions, gross | (416) | |
Reclassifications or dispositions, less accumulated depreciation | 375 | |
Reclassifications or dispositions, net | (41) | |
Transportation, Rail [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 8,148 | 8,499 |
Additions, gross | ||
Reclassifications or dispositions, gross | (351) | |
Aviation [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 1,658 | 1,658 |
Additions, gross | ||
Reclassifications or dispositions, gross | ||
Marine Vessels [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 1,415 | 1,415 |
Additions, gross | ||
Reclassifications or dispositions, gross | ||
Transportation, Other [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 1,349 | 1,349 |
Additions, gross | ||
Reclassifications or dispositions, gross | ||
Materials Handling [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 91 | 156 |
Additions, gross | ||
Reclassifications or dispositions, gross | (65) | |
Manufacturing [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 10 | $ 10 |
Additions, gross | ||
Reclassifications or dispositions, gross |
Investment in Equipment and L26
Investment in Equipment and Leases, Net (Future Minimum Lease Payments Receivable) (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Operating Leases | |
Six months ending December 31, 2017 | $ 434 |
Year ending December 31, 2018 | 421 |
2,019 | 315 |
2,020 | 260 |
2,021 | 77 |
Operating leases, future minimum payments receivable, total | $ 1,507 |
Investment in Equipment and L27
Investment in Equipment and Leases, Net (Schedule of Useful Lives of Lease Assets) (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Minimum [Member] | Transportation, Rail [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 35 years |
Minimum [Member] | Marine Vessels [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 20 years |
Minimum [Member] | Aviation [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 15 years |
Minimum [Member] | Manufacturing [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Minimum [Member] | Materials Handling [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 7 years |
Minimum [Member] | Transportation, Other [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 7 years |
Maximum [Member] | Transportation, Rail [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 40 years |
Maximum [Member] | Marine Vessels [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 30 years |
Maximum [Member] | Aviation [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 20 years |
Maximum [Member] | Manufacturing [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 15 years |
Maximum [Member] | Materials Handling [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Maximum [Member] | Transportation, Other [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Related Party Transactions (Aff
Related Party Transactions (Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Related Party Transactions [Abstract] | ||||
Cost reimbursements to Managing Member and/or affiliates | $ 47 | $ 33 | $ 99 | $ 66 |
Asset management fees to Managing Member | 15 | 17 | 25 | 49 |
Related party transaction, total | $ 62 | $ 50 | $ 124 | $ 115 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Commitments [Abstract] | |
Commitments to purchase lease assets or fund loans | $ 0 |
Members' Capital (Narrative) (D
Members' Capital (Narrative) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Members Capital Account [Line Items] | ||||||
Units issued | 5,209,307 | 5,209,307 | 5,209,307 | |||
Units outstanding | 5,209,307 | 5,209,307 | 5,209,307 | |||
Other Members capital account, Units authorized | 15,000,000 | 15,000,000 | 15,000,000 | |||
Weighted average distributions per Unit | $ 0.10 | $ 0.25 | $ 0.35 | $ 0.25 | $ 0.25 | |
Other Members [Member] | ||||||
Other Members Capital Account [Line Items] | ||||||
Units outstanding | 5,209,307 | 5,209,307 | 5,209,307 | 5,209,307 | ||
Managing Member [Member] | ||||||
Other Members Capital Account [Line Items] | ||||||
Units issued | 50 | 50 | 50 |
Members' Capital (Distributions
Members' Capital (Distributions to Other Members) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Members' Capital [Abstract] | |||||
Distributions | $ 523 | $ 1,303 | $ 1,828 | $ 1,303 | $ 1,303 |
Weighted average number of Units outstanding | 5,209,307 | 5,209,307 | 5,209,307 | 5,209,307 | |
Weighted average distributions per Unit | $ 0.10 | $ 0.25 | $ 0.35 | $ 0.25 | $ 0.25 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Fair Value Measurements [Abstract] | |||||
Estimated fair value of warrants | $ 0 | $ 0 | $ 0 | ||
Fair value adjustments which reduced the cost basis of impaired investment security | $ 0 | $ 0 | $ 0 | $ 16 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Carrying Amount [Member] | ||
Financial assets: | ||
Cash and cash equivalents | $ 761 | $ 1,932 |
Investment in securities | 22 | 22 |
Estimated Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 761 | 1,932 |
Investment in securities | 22 | 22 |
Estimated Fair Value [Member] | Level 1 Estimated Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 761 | 1,932 |
Investment in securities | ||
Estimated Fair Value [Member] | Level 2 Estimated Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | ||
Investment in securities | ||
Estimated Fair Value [Member] | Level 3 Estimated Fair Value [Member] | ||
Financial assets: | ||
Investment in securities | $ 22 | $ 22 |