Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | ATEL 14, LLC | |
Entity Central Index Key | 1,463,389 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Units Outstanding | 8,368,655 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 4,976 | $ 6,646 |
Accounts receivable, net of allowance for doubtful accounts of $9 at June 30, 2015 and $5 at December 31, 2014 | 168 | 175 |
Notes receivable, net of unearned interest income of $91 and allowance for credit losses of $33 at June 30, 2015 and net of unearned interest income of $209 and allowance for credit losses of $0 at December 31, 2014 | 798 | 1,454 |
Investment in securities | 333 | 318 |
Fair value of warrants | 612 | 595 |
Investments in equipment and leases, net of accumulated depreciation of $27,266 at June 30, 2015 and $25,888 at December 31, 2014 | 43,504 | 49,108 |
Due from Affiliates | 154 | |
Prepaid expenses and other assets | 101 | 105 |
Total assets | 50,492 | 58,555 |
Accounts payable and accrued liabilities: | ||
Managing Member | 100 | 66 |
Affiliates | 26 | |
Accrued distributions to Other Members | 814 | 816 |
Other | 243 | 285 |
Deposits due lessees | 21 | 25 |
Non-recourse debt | 15,215 | 19,279 |
Long-term debt | 2,068 | 2,068 |
Unearned operating lease income | 501 | 516 |
Total liabilities | $ 18,988 | $ 23,055 |
Commitments and contingencies | ||
Members' capital: | ||
Managing Member | ||
Other Members | $ 31,504 | $ 35,500 |
Total Members' capital | 31,504 | 35,500 |
Total liabilities and Members' capital | $ 50,492 | $ 58,555 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts receivable, allowance for doubtful accounts | $ 9 | $ 5 |
Notes receivable, unearned interest income | 91 | |
Allowance for credit losses | 42 | 5 |
Investments in equipment and leases, accumulated depreciation | 27,266 | 25,888 |
Notes Receivable [Member] | ||
Notes receivable, unearned interest income | 91 | 209 |
Allowance for credit losses | $ 33 | $ 0 |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Leasing and lending activities: | ||||
Operating leases | $ 2,854 | $ 3,428 | $ 5,858 | $ 6,939 |
Direct financing leases | 6 | 15 | 15 | 31 |
Interest on notes receivable | 24 | 76 | 54 | 177 |
Gain on sales of lease assets and early termination of notes receivable | 311 | 93 | 448 | 608 |
Gain on sales or dispositions of securities | 8 | 51 | 8 | 57 |
Unrealized gain (loss) on fair valuation of warrants | 1 | (101) | 17 | (101) |
Other | 6 | 1 | 25 | 15 |
Total revenues | 3,210 | 3,563 | 6,425 | 7,726 |
Expenses: | ||||
Depreciation of operating lease assets | 2,126 | 2,663 | 4,418 | 5,436 |
Asset management fees to Managing Member | 169 | 189 | 321 | 385 |
Acquisition expense | 80 | 165 | ||
Cost reimbursements to Managing Member and/or affiliates | 318 | 390 | 684 | 774 |
Provision for credit losses | 7 | 46 | 37 | 31 |
Impairment losses on equipment | (2) | 42 | ||
Amortization of initial direct costs | 19 | 31 | 41 | 62 |
Interest expense | 124 | 174 | 260 | 354 |
Professional fees | 17 | 21 | 91 | 96 |
Outside services | 15 | 17 | 34 | 38 |
Taxes on income and franchise fees | 23 | 8 | 45 | 15 |
Bank charges | 38 | 50 | 84 | 99 |
Railcar maintenance | 112 | 166 | 178 | 282 |
Other | 42 | 50 | 89 | 103 |
Total expenses | 3,010 | 3,883 | 6,282 | 7,882 |
Net income (loss) | 200 | (320) | 143 | (156) |
Net income (loss): | ||||
Managing Member | 153 | 153 | 306 | 306 |
Other Members | 47 | (473) | (163) | (462) |
Net income (loss) | $ 200 | $ (320) | 143 | $ (156) |
Other Members [Member] | ||||
Expenses: | ||||
Net income (loss) | (163) | |||
Net income (loss): | ||||
Net income (loss) | $ (163) | |||
Net income (loss) per Limited Liability Company Unit (Other Members) | $ 0.01 | $ (0.06) | $ (0.02) | $ (0.06) |
Weighted average number of Units outstanding | 8,385,839 | 8,386,015 | 8,385,927 | 8,386,015 |
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, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Beginning Balance | $ 35,500 | $ 42,886 | $ 42,886 | |
Repurchase of Units | (63) | |||
Distributions to Other Members | (3,770) | (7,548) | ||
Distributions to Managing Member | (306) | (612) | ||
Net (loss) income | $ 200 | 143 | $ (156) | 774 |
Ending Balance | 31,504 | $ 31,504 | $ 35,500 | |
Other Members [Member] | ||||
Beginning Balance (in units) | 8,386,015 | 8,386,015 | 8,386,015 | |
Beginning Balance | $ 35,500 | $ 42,886 | $ 42,886 | |
Repurchase of units (in units) | (16,000) | |||
Repurchase of Units | $ (63) | |||
Distributions to Other Members | $ (1,883) | (3,770) | $ (3,774) | (7,548) |
Net (loss) income | $ (163) | $ 162 | ||
Ending Balance (in units) | 8,370,015 | 8,370,015 | 8,386,015 | |
Ending Balance | $ 31,504 | $ 31,504 | $ 35,500 | |
Managing Member [Member] | ||||
Distributions to Managing Member | (306) | (612) | ||
Net (loss) income | $ 306 | $ 612 |
Statements of Changes in Membe6
Statements of Changes in Members' Capital (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Other Members [Member] | |||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | |||||
Distributions to Other Members, per unit | $ 0.22 | $ 0.23 | $ 0.45 | $ 0.45 | $ 0.90 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities: | ||||
Net income (loss) | $ 200 | $ (320) | $ 143 | $ (156) |
Adjustment to reconcile net income (loss) to cash provided by operating activities: | ||||
Gain on sales of lease assets and early termination of notes receivable | (311) | (93) | (448) | (608) |
Depreciation of operating lease assets | 2,126 | 2,663 | 4,418 | 5,436 |
Amortization of initial direct costs | 19 | 31 | 41 | 62 |
Provision for credit losses | 7 | 46 | 37 | 31 |
Impairment losses on equipment | (2) | 42 | ||
Gain on sales or disposition of securities | (8) | (51) | (8) | (57) |
Unrealized (gain) loss on fair valuation of warrants | (1) | 101 | (17) | 101 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | 7 | (40) | 3 | (40) |
Prepaid expenses and other assets | 16 | 19 | 4 | 36 |
Accounts payable, Managing Member | 48 | 3 | 34 | |
Accounts payable, other | (270) | (42) | (42) | 3 |
Accrued liabilities, affiliates | (45) | 280 | 180 | 32 |
Deposits due lessees | (4) | (4) | ||
Unearned operating lease income | (53) | 177 | (15) | 49 |
Net cash provided by operating activities | 1,731 | 2,772 | 4,326 | 4,931 |
Investing activities: | ||||
Purchases of equipment and improvements on operating leases | (46) | (21) | (90) | |
Purchase of securities | (25) | (15) | (25) | |
Proceeds from sales of lease assets and early termination of notes receivable | 1,244 | 646 | 1,567 | 2,228 |
Principal payments received on direct financing leases | 69 | 81 | 160 | 159 |
Proceeds from sale of securities | 8 | 51 | 8 | 57 |
Principal payments received on notes receivable | 174 | 438 | 510 | 1,142 |
Net cash provided by investing activities | 1,495 | 1,145 | 2,209 | 3,471 |
Financing activities: | ||||
Borrowings under non-recourse debt | 1,328 | 3,189 | ||
Repayments under non-recourse debt | (1,946) | (2,486) | (4,064) | (4,906) |
Repurchase or rescissions of Units | (63) | (63) | ||
Net cash used in financing activities | (4,047) | (3,198) | (8,205) | (5,797) |
Net (decrease) increase in cash and cash equivalents | (821) | 719 | (1,670) | 2,605 |
Cash and cash equivalents at beginning of period | 5,797 | 4,976 | 6,646 | 3,090 |
Cash and cash equivalents at end of period | 4,976 | 5,695 | 4,976 | 5,695 |
Supplemental disclosures of cash flow information: | ||||
Cash paid during the period for interest | 106 | 158 | 224 | 325 |
Cash paid during the period for taxes | 66 | 47 | 68 | 49 |
Schedule of non-cash transactions: | ||||
Improvements to equipment on operating leases | 7 | 7 | ||
Other Members [Member] | ||||
Operating activities: | ||||
Net income (loss) | (163) | |||
Financing activities: | ||||
Distributions to Members | (1,885) | (1,887) | (3,772) | (3,774) |
Schedule of non-cash transactions: | ||||
Distributions payable to Members at period-end | 814 | 816 | 814 | 816 |
Managing Member [Member] | ||||
Operating activities: | ||||
Net income (loss) | 306 | |||
Financing activities: | ||||
Distributions to Members | (153) | (153) | (306) | (306) |
Schedule of non-cash transactions: | ||||
Distributions payable to Members at period-end | $ 66 | $ 66 | $ 66 | $ 66 |
Organization and Limited Liabil
Organization and Limited Liability Company Matters | 6 Months Ended |
Jun. 30, 2015 | |
Organization and Limited Liability Company Matters [Abstract] | |
Organization and Limited Liability Company Matters | 1. Organization and Limited Liability Company matters: ATEL 14, LLC (the “Company” or the “Fund”) was formed under the laws of the state of California on April 1, 2009 (“Date of Inception”) for the purpose of equipment financing and acquiring equipment to engage in equipment leasing and sales activities. The Managing Member of the Company is ATEL Managing Member, LLC (the “Managing Member” or “Manager”), a Nevada limited liability company . Prior to May 9, 2011, the Manager was named ATEL Associates 14, LLC. The Managing Member is controlled by ATEL Financial Services, LLC (“AFS”), a wholly-owned subsidiary of ATEL Capital Group. The Fund may continue until December 31, 2030 . Contributions in the amount of $500 were received as of May 8, 2009, which represented the initial m ember’s capital investment. As a limited liability company, the liability of any individual member for the obligations of the Fund is limited to the extent of capital contributions to the Fund by the individual member. The Company conducted a public offering of 15,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. As of December 2, 2009, subscriptions for the minimum number of Units (120,000 , representing $1.2 million), excluding subscriptions from Pennsylvania investors, had been received and the Fund requested subscription proceeds to be released from escrow. On that date, the Company commenced initial operations and continued in its development stage activities until transitioning to an operating enterprise during the first quarter of 2010 . Pennsylvania subscriptions are subject to a separate escrow and are released to the Fund only when aggregate subscriptions for all investors equal to at least $7.5 million. Total contributions to the Fund exceeded $7.5 million on February 12, 2010, at which time a request was processed to release the Pennsylvania escrowed amounts. The offering was terminated on October 6, 2011. As of June 30, 2015, cumulative gross contributions, less rescissions and repurchases (net of distributions paid and allocated syndication costs, as applicable), totaling $84.0 million (inclusive of the $500 initial Member’s capital investment) have been received. As of the same date, 8,370 ,015 Units were issued and outstanding . The Company’s principal objectives are to invest in a diversified portfolio of investments that will (i) preserve, protect and return the Company’s invested capital; (ii) generate regular cash distributions to Unitholders, with any balance remaining after required minimum distributions to be used to purchase additional investments during the Reinvestment Period (ending six calendar years after the completion of the Company’s public offering of Units) and (iii) provide additional cash distributions following the Reinvestment Period and until all investment portfolio assets have been sold or otherwise disposed. The Company is governed by the ATEL 14, LLC amended and restated limited liability company operating agreement dated October 7, 2009 (the “Operating Agreement”). Pursuant to the terms of the Operating Agreement, the Managing Member and/or its affiliates 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 the Managing Member. These unaudited interim financial statements should be read in conjunction with the financial statements and notes thereto contained in the report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
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 , 2015 are not necessarily indicative of the results to be expected for the full year. Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying unaudited financial statements, the Managing Member has reviewed, as determined necessary by the Managing Member, events that have occurred after June 30 , 2015, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, and 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 organized into one operating segment for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States. The primary geographic region in which the Company seeks leasing opportunities is North America and Europe. For the six months ended June 30, 2015 and 2014, and as of June 30, 2015 and December 31, 2014, all of the Company’s operating revenues and long-lived assets relate to customers domiciled in North America. Investment in securities: Purchased securities Purchased securities are generally not registered for public sale and are carried at cost. Such securities are adjusted to fair value if the fair value is less than the carrying value and such impairment is deemed by the Managing Member to be other than temporary. Factors considered by the Managing Member in determining fair value include , but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. The Company had $333 thousand and $ 318 thousand of purchased securities at June 30 , 2015 and December 31, 2014, respectively. There were no sales or dispositions of securities during the respective three and six months ended June 30 , 2015 and 2014 . Warrants Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet as determined by the Managing Member. During the respective three and six months ended June 30 , 2015, the Company recorded unrealized gains of $1 thousand and $17 thousand on fair valuation of its warrants. By comparison, during the three months ended June 30, 2014, the Company recorded unrealized losses of $101 thousand on fair valuation of its warrants. Such amount also represents total unrealized losses for the six months ended June 30, 2014. The unrealized gains recorded during the current year period increased the estimated fair value of the Company’s portfolio of warrants to $61 2 thousand at June 30 , 2015 from $595 thousand at December 31, 2014. In addition, the Company realized $ 8 thousand of gain s from the net exercise of warrants during the three months ended June 30, 2015. Such amount also represents total gains for the six months ended June 30, 2015. By comparison, during the prior year three- and six-month periods, t he Company realized $51 thousand and $57 thousand of gains from the net exercise of warrants . Per Unit data: Net income (loss) and distributions per Unit are based upon the weighted average number of Other Members Units outstanding during the period. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year. As a result, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The board will also allow companies to adopt the standard as of the original effective date, which is January 2017, if they are inclined to do so. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company evaluated the impact of the new standard on its financial statements and has determined that such impact is virtually non-existent as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues . In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements – Going Concern (subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The new standard provides guidance relative to management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Management is currently evaluating the standard and its operational and related disclosure requirements . |
Notes Receivable, Net
Notes Receivable, Net | 6 Months Ended |
Jun. 30, 2015 | |
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 . The original terms of the notes receivable are from 36 to 42 months and bear interest at rates ranging from 10.96 % to 18.00 % per annum . The notes are generally secured by the equipment financed . The notes mature from 20 15 through 20 16 . As of December 31, 2014, the Company had four notes receivable which were on non-accrual status, two of which were fully paid on February 24, 2015 with the remaining two still on non-accrual status at June 30, 2015. The two notes fully paid in February 2015 were originally placed on nonaccrual status during the second quarter of 2014. Such notes had net recorded investments approximating $85 thousand and $105 thousand as of December 31, 2014 and were considered impaired relative to their payment terms. The terms of these notes were modified to defer the repayment of principal until November 1, 2014 while maintaining interest-only payments at their original rate of 12.00% . Upon the resumption of principal and interest payments in November 2014, the monthly payments were adjusted such that the ultimate total payments would reflect interest earned at a composite rate of 18.00% per annum as related to the entire term of the indebtedness from the original funding date. Payments received on these notes have been fully applied against principal pursuant to the Company’s policy on non-accrual notes. Interest not recorded relative to the original terms of the non-accrual notes approximated $18 thousand from June 2014 to February 2015. The notes remained current with respect to their restructured terms; and, management has determined that no adjustment was necessary to reflect fair value through their termination dates. The Fund recognized gains totaling $88 thousand from the February 24, 2015 settlement of the two notes on proceeds of $199 thousand. The two notes remaining on non-accrual status as of June 30, 2015 had a combined net recorded investment of $105 thousand and $111 thousand as of June 30, 2015 and December 31, 2014 , respectively. Both notes have a stated annual interest rate of 11.73% . There were no related fair value adjustments recorded through December 31, 2014. During the first quarter of 2015, the Company recorded $33 thousand of fair value adjustments. As of June 30, 2015, management continued to deem the notes impaired. However, there were no additional fair value adjustments at June 30, 2015. As of the same date, the fair value of such notes was $72 thousand. Effective January 1, 2015, the notes were modified to defer the repayment of principal while maintaining interest-only payments at their original rates through June 30, 2015. During the second quarter of 2015, an additional modification was made to the notes which extended the interest only payments through October 31, 2015. As of November 1, 2015, the entire balance outstanding on these notes will be due. The payments will be adjusted such that the ultimate amounts paid will reflect interest earned at a composite rate of 18.00% per annum as related to the entire term of the indebtedness from the original funding date. Payments received on these nonaccrual notes have been fully applied against principal pursuant to the Company’s policy on non-accrual notes. Interest not recorded relative to the original terms of the non-accrual notes approximated $6 thousand from December 2014 to June 2015. As of June 30, 2015, the minimum future payments receivable are as follows (in thousands): Six months ending December 31, 2015 $ Year ending December 31, 2016 Less: portion representing unearned interest income Unamortized initial direct costs Less: allowance for credit losses Notes receivable, net $ Initial direct costs (“IDC”) amortization expense related to notes receivable and the Company’s operating and direct finance leases for the three and six months ended June 30, 2015 and 2014 are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 IDC amortization - notes receivable $ $ $ $ IDC amortization - lease assets Total $ $ $ $ |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2015 | |
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 for Doubtful Accounts Valuation Adjustments on Financing Receivables Total Allowance for Credit Losses Notes Receivable Finance Leases Operating Leases Notes Receivable Finance Leases Balance December 31, 2013 $ - $ - $ $ - $ - $ Reversal of provision for credit losses - - - - Balance December 31, 2014 - - - - Provision for credit losses - - - Balance June 30, 2015 $ - $ - $ $ $ - $ Accounts r eceivable Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and notes receivable which are currently due to the Company. Allowances for doubtful accounts are typically established based upon their aging and historical charge off and collection experience and the creditworthiness of specifically identified lessees and borrowers, and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received. Accounts receivable are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of companies with lease or note payments outstanding less than 90 days. Based upon management’s judgment, such leases or notes may be placed in non-accrual status. Leases or notes placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid receivable is probable. Until such time, revenues on operating leases are recognized on a cash basis. All payments received on amounts billed under direct financing leases and notes receivable are applied only against outstanding principal balances. Financing r eceivable s In addition to the allowance established for delinquent accounts receivable, the total allowance related solely to financing receivables also includes anticipated impairment charges on notes receivable and direct financing leases. Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest when due. If it is determined that a loan is impaired with regard to scheduled payments, the Company will perform an analysis of the note to determine if an impairment valuation reserve is necessary. This analysis considers the estimated cash flows from the note, or the collateral value of the property underlying the note when note repayment is collateral dependent. Any required valuation reserve is charged to earnings when determined; and notes are charged off to the allowance as they are deemed uncollectible. The asset underlying a direct financing lease contract is considered impaired if the estimated undiscounted future cash flows of the asset are less than its net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the 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. As of June 30, 2015 and December 31, 2014, the Company’s allowance for credit losses (related solely to financing receivables) and its recorded investment in financing receivables were as follows follows (in thousands): June 30, 2015 Notes Receivable Finance Leases Total Allowance for credit losses: Ending balance $ $ - $ Ending balance: individually evaluated for impairment $ $ - $ Ending balance: collectively evaluated for impairment $ - $ - $ - Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - Financing receivables: Ending balance $ 1 $ $ Ending balance: individually evaluated for impairment $ $ $ Ending balance: collectively evaluated for impairment $ - $ - $ - Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - 1 Includes $1 of unamortized initial direct costs. December 31, 2014 Notes Receivable Finance Leases Total Allowance for credit losses: Ending balance $ - $ - $ - Ending balance: individually evaluated for impairment $ - $ - $ - Ending balance: collectively evaluated for impairment $ - $ - $ - Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - Financing receivables: Ending balance $ 2 $ $ Ending balance: individually evaluated for impairment $ $ $ Ending balance: collectively evaluated for impairment $ - $ - $ - Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - 2 Includes $3 of unamortized initial direct costs. The Company evaluates the credit quality of its financing receivables on a scale equivalent to the following quality indicators related to corporate risk profiles: Pass – Any account whose lessee/debtor, co-lessee/debtor or any guarantor has a credit rating on publicly traded or privately placed debt issues as rated by Moody’s or S&P for either Senior Unsecured debt, Long Term Issuer rating or Issuer rating that are in the tiers of ratings generally recognized by the investment community as constituting an Investment Grade credit rating; or, has been determined by the Manager to be an Investment Grade Equivalent or High Quality Corporate Credit per its Credit Policy or has a Not Rated internal rating by the Manager and the account is not considered by the Chief Credit Officer of the M anager to fall into one of the three risk profiles below. Special Mention – Any traditional corporate type account with potential weaknesses (e.g. large net losses or major industry downturns) or, any growth capital account that has less than three months of cash as of the end of the calendar quarter to fund their continuing operations. These accounts deserve management’s close attention. If left uncorrected, those potential weaknesses may result in deterioration of the Fund’s receivable at some future date. Substandard – Any account that is inadequately protected by the current worth and paying capacity of the borrower or of the collateral pledged, if any. Accounts that are so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Fund will sustain some loss as the likelihood of fully collecting all receivables may be questionable if the deficiencies are not corrected. Such accounts are on the Manager’s Credit Watch List. Doubtful – Any account where the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Accordingly, an account that is so classified is on the Manager’s Credit Watch List, and has been declared in default and the Manager has repossessed, or is attempting to repossess, the equipment it financed. This category includes impaired notes and leases as applicable. At June 30, 2015 and December 31, 2014, the Company’s financing receivables by credit quality indicator and by class of financing receivables are as follows (excludes initial direct costs) (in thousands): Notes Receivable Finance Leases June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Pass $ $ $ $ Special mention - - Substandard - - - Doubtful - - - - Total $ $ $ $ As of June 30, 2015, the Company’s impaired loans were as follows (in thousands): Impaired Loans 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 - Total $ $ $ $ $ - There were no impaired loans as of December 31, 2014. At June 30 , 2015 and December 31, 2014, the investment in financing receivables is aged as follows (in thousands): June 30, 2015 31-60 Days Past Due 61-90 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment>90 Days and Accruing Notes receivable $ - $ - $ - $ - $ $ $ - Finance leases - - - - - Total $ - $ - $ - $ - $ $ $ - December 31, 2014 31-60 Days Past Due 61-90 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment>90 Days and Accruing Notes receivable $ - $ - $ - $ - $ $ $ - Finance leases - - - - - Total $ - $ - $ - $ - $ $ $ - As of December 31, 2014, the Company had four notes receivable which were on non-accrual status, two of which were fully paid on February 24, 2015 with the remaining two still on non-accrual status at June 30, 2015 (See Note 3). |
Investments in Equipment and Le
Investments in Equipment and Leases, Net | 6 Months Ended |
Jun. 30, 2015 | |
Investments in Equipment and Leases, Net [Abstract] | |
Investments in Equipment and Leases, Net | 5 . Investments in equipment and leases, net: The Company’s investment in leases consists of the following (in thousands): Balance December 31, 2014 Reclassifications, Additions/ Dispositions and Impairment Losses Depreciation/ Amortization Expense or Amortization of Leases Balance June 30, 2015 Net investment in operating leases $ $ $ $ Net investment in direct financing leases Assets held for sale or lease, net - Initial direct costs, net of accumulated amortization of $232 at June 30, 2015 and $277 at December 31, 2014 - Total $ $ $ $ Impairment of investments in leases: Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances. As a result of these reviews, the Company determined that no impairment losses existed during the first six months of 2015. By comparison, during the first six months of 2014, the Company recorded fair value adjustments totaling $42 thousand to reduce the cost basis of certain impaired off-lease computer hardware. The Company utilizes a straight line depreciation method over the term of the equipment lease for equipment on operating leases currently in its portfolio. Depreciation expense on the Company’s equipment totaled $ 2.1 million and $ 2.7 million for the respective three months ended June 30, 2015 and 2014, and $4.4 million and $5.4 million for the respective six months ended June 30, 2015 and 2014. IDC amortization expense related to operating leases and direct financing leases totaled $18 thousand and $26 thousand for the respective three months ended June 30, 2015 and 2014, and $39 thousand and $53 thousand for the respective six months ended June 30, 2015 and 2014. (See Note 3). Operating leases: Property on operating leases consists of the following (in thousands): Balance December 31, 2014 Additions Reclassifications or Dispositions Balance June 30, 2015 Marine vessel $ $ - $ - $ Transportation, rail Manufacturing - Transportation - Materials handling - Construction - - Research - - Agriculture - - Air support equipment - - Office automation - - Other - Less accumulated depreciation Total $ $ $ $ The average estimated residual value for assets on operating leases was 40% and 39% of the assets’ original cost at June 30, 2015 and December 31, 2014, respectively. There were no operating leases in non-accrual status at June 30, 2015 and December 31, 2014. All of the Company’s leased property was acquired during the years from 2010 through 2015. Direct financing leases: As of June 30, 2015, investment in direct financing leases consists of various types of materials handling and computer-related equipment. As of December 31, 2014, such investment consisted of various types of materials handling, computer-related equipment and cleaning and maintenance equipment. The components of the Company’s investment in direct financing leases as of June 30, 2015 and December 31, 2014 are as follows (in thousands): June 30, 2015 December 31, 2014 Total minimum lease payments receivable $ $ Estimated residual values of leased equipment (unguaranteed) Investment in direct financing leases Less unearned income Net investment in direct financing leases $ $ As of June 30, 2015 and December 31, 2014, there were no investments in direct financing leases in non-accrual status. At June 30, 2015, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands): Operating Leases Direct Financing Leases Total Six months ending December 31, 2015 $ $ $ Year ending December 31, 2016 - - - $ $ $ The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of June 30, 2015, 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 vessel 20 - 30 Air support equipment 15 - 20 Manufacturing 10 - 15 Agriculture 7 - 10 Cleaning and Maintenance 7 - 10 Construction 7 - 10 Materials handling 7 - 10 Transportation 7 - 10 Research 5 - 7 Computers 3 - 5 Office automation 3 - 5 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 6 . Related party transactions: The terms of the Operating Agreement provide that the Managing Member 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 the Managing Member and/or affiliates for providing administrative services to the Company. Administrative services provided include Company accounting, investor relations, legal counsel and lease and equipment documentation. The Managing Member is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of investments. Each of ATEL Financial Services, LLC (“AFS”) and ATEL Leasing Corporation (“ALC”) is a wholly-owned subsidiary of ATEL Capital Group and performs services for the Company on behalf of the Managing Member. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; investor relations, communications and general administrative services are performed by AFS. C ost reimbursements to the Managing Member or its affiliates are based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as total assets, number of investors or contributed capital based upon the type of cost incurred. The Managing Member believes that the costs reimbursed are the lower of (i) actual costs incurred on behalf of the Company or (ii) the amount the Company would be required to pay independent parties for comparable administrative services in the same geographic location. The Managing Member and/or affiliates earned fees and billed for reimbursements of costs and expenses, pursuant to the Operating Agreement, during the three and six months ended June 30, 2015 and 2014 as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Administrative costs reimbursed to Managing Member and/or affiliates $ $ $ $ Asset management fees to Managing Member Acquisition and initial direct costs paid to Managing Member - - $ $ $ $ |
Non-Recourse Debt
Non-Recourse Debt | 6 Months Ended |
Jun. 30, 2015 | |
Non-Recourse Debt [Abstract] | |
Non-Recourse Debt | 7 . Non-recourse debt: At June 30, 2015 , non-recourse debt consists of note s payable to financial institution s . The note s are due in monthly installments. Interest on the note s is at fixed rate s ranging from 1.47 % to 3.00 % per annum . The note s are secured by assignments of lease payments and pledges of assets. At June 30, 2015 , gross operating lease rentals totaled approximately $ 15.9 million over the remaining lease terms; and the carrying value of the pledged assets is $ 35.7 million. The notes mature at various dates from 201 5 through 201 9 . The non-recourse debt does not contain any material financial covenants. The debt is secured by a specific lien granted by the Company to the non-recourse lenders on (and only on) the discounted lease transactions. The lenders has recourse only to the following collateral: the leased equipment; the related lease chattel paper; the lease receivables; and proceeds of the foregoing items. The non-recourse obligation is payable solely out of the respective specific security and the Company does not guarantee (nor is the Company otherwise contractually responsible for) the payment of the non-recourse debt as a general obligation or liability of the Company. Although the Company does not have any direct or general liability in connection with the non-recourse debt apart from the security granted, the Company is directly and generally liable and responsible for certain representations, warranties, and covenants made to the lenders, such as warranties as to genuineness of the transaction parties' signatures, as to the genuineness of the respective lease chattel paper or the transaction as a whole, or as to the Company's good title to or perfected interest in the secured collateral, as well as similar representations, warranties and covenants typically provided by non-recourse borrowers and customary in the equipment finance industry, and are viewed by such industry as being consistent with non-recourse discount financing obligations. Accordingly, as there are no financial covenants or ratios imposed on the Company in connection with the non-recourse debt , the Company has determined that there are no material covenants with respect to the non-recourse debt that warrant footnote disclosure. Future minimum payments of non-recourse debt are as follows (in thousands): Principal Interest Total Six months ending December 31, 2015 $ $ $ Year ending December 31, 2016 $ $ $ |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2015 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 8. Long-term debt: As of June 30, 2015, the $2.1 million of long-term debt consists of a note payable to a lender. Such debt was utilized during the fourth quarter of 2013 to partially fund the marine vessel and related bareboat charter purchased by the Fund and its affiliate, ATEL 15, LLC. The note bears interest at a fixed-rate of 3.5% per annum, to accrue in arrears on a monthly basis . The full pro rata principal amount of $2.1 million plus all outstanding accrued and unpaid interest of approximately $400 thousand shall be paid in one payment of $2.5 million due on May 25, 2019 . The note is recourse to the residual value of the vessel which is expected to be well in excess of the note amount. In addition, the lender has recourse to the Fund’s general assets up to $2.5 million. The note does not contain any material financial covenants and is guaranteed as a senior obligation of the Fund. |
Borrowing Facilities
Borrowing Facilities | 6 Months Ended |
Jun. 30, 2015 | |
Borrowing Facilities [Abstract] | |
Borrowing Facilities | 9 . Borrowing facilities: The Company participates with AFS and certain of its affiliates in a revolving credit facility (the “Credit Facility”) with a syndicate of financial institutions as lenders. The Credit Facility is 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 . The Credit Facility was for an amount up to $ 60 .0 million and set to expire in June 2014 . During January 2014, the line was increased to $75 .0 million, an affiliated participant added, and the expiration extended to June 2015 . During April 2015, the line was reduced to $56.0 million and an affiliated company, ATEL 12, LLC, was removed effective December 30, 2014. At June 30, 2015, the line was further reduced to $41.1 million coincidental with a restructure of the lending group; and, the expiration extended to September 2015. The lending syndicate providing the Credit Facility has a blanket lien on all of the Company’s assets as collateral for any and all borrowings under the Acquisition Facility, and on a pro-rata basis under the Warehouse Facility . Such Credit Facility includes certain financial covenants. As of June 30, 2015 and December 31, 2014, borrowings under the Credit Facility were as follows (in thousands): June 30, December 31, 2015 2014 Total available under the financing arrangement $ $ Amount borrowed by the Company under the acquisition facility - - Amounts borrowed by affiliated partnerships and limited liability companies under the venture, acquisition and warehouse facilities Total remaining available under the venture, acquisition and warehouse facilities $ $ The Company and its affiliates pay an annual commitment fee to have access to this line of credit. As of June 30, 2015, the aggregate amount of the Credit Facility is potentially available to the Company, subject to certain sub-facility and borrowing-base limitations. However, as amounts are drawn on the Credit Facility by each of the Company and the affiliates who are borrowers under the Credit Facility, the amount remaining available to all borrowers to draw under the Credit Facility is reduced. As the Warehousing Facility is a short term bridge facility, any amounts borrowed under the Warehousing Facility, and then repaid by the affiliated borrowers (including the Company) upon allocation of an acquisition to a specific purchaser, become available under the Warehouse Facility for further short term borrowing. As of June 30, 2015 , the Company’s Tangible Net Worth requirement under the Credit Facility was $ 10.0 million, the permitted maximum leverage ratio was not to exceed 1.25 to 1, and the required minimum interest coverage ratio was not to be less than 2 to 1. The Company was in compliance with these financial covenants under the Credit Facility with a minimum Tangible Net Worth, leverage ratio and interest coverage ratio, as calculated per the Credit Facility agreement of $ 3 1 . 5 million, 0. 55 to 1, and 22 . 24 to 1 , respectively, as of June 30, 2015 . As such, as of June 30, 2015 , the Company was in compliance with all material financial covenants, and with all other material conditions of the Credit Facility. The Company does not anticipate any covenant violations nor does it anticipate that any of these covenants will restrict its operations or its ability to procure additional financing. Fee and interest terms The interest rate on the Credit Facility is 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-prices daily. Principal amounts of loans made under the Credit Facility that are prepaid may be re-borrowed on the terms and subject to the conditions set forth under the Credit Facility. There were no borrowings outstanding at June 30, 2015 and December 31, 2014. Warehouse facility To hold the assets under the Warehousing Facility prior to allocation to specific investor programs, a Warehousing Trust has been entered into by the Company, AFS, ALC, and certain of the affiliated partnerships and limited liability companies. The Warehousing Trust is used by the Warehouse Facility borrowers to acquire and hold, on a short-term basis, certain lease transactions that meet the investment objectives of each of such entities. Each of th e leasing programs sponsored by AFS and ALC is a pro rata participant in the Warehousing Trust, as described below. When a program no longer has a need for short- term financing provided by the Warehousing Facility, it is removed from participation, and as new leasing investment entities are formed by AFS and ALC and commence their acquisition stages, these new entities are added. As of June 30, 2015 , the investment program participants were the Company, ATEL 15, LLC and ATEL 16, LLC . Effective December 30, 2014, ATEL 12, LLC was formally removed as a participant of the Credit Facility. Pursuant to the Warehousing Trust, the benefit of the lease transaction assets, and the corresponding liabilities under the Warehouse Facility, inure to each of such entities based upon each entity’s pro-rata share in the Warehousing Trust estate. The “pro-rata share” is calculated as a ratio of the net worth of each entity over the aggregate net worth of all entities benefiting from the Warehousing Trust estate, excepting that the trustees, AFS and ALC, are both jointly a nd severally liable for the pro- rata portion of the obligations of each of the affiliated limited liability companies participating under the Warehouse Facility. Transactions are financed through this Warehouse Facility only until the transactions are allocated to a specific program for purchase or are otherwise disposed by AFS and ALC. When a determination is made to allocate the transaction to a specific program for purchase by the program, the purchaser repays the debt associated with the asset, either with cash or by means of proceeds of a draw under the Acquisition Facility, and the asset is removed from the Warehouse Facility collateral, and ownership of the asset and any debt obligation associated with the asset are assumed solely by the purchasing entity. There were no borrowings under the Warehouse Facility as of June 30, 2015 and December 31, 2014 . |
Commitments
Commitments | 6 Months Ended |
Jun. 30, 2015 | |
Commitments [Abstract] | |
Commitments | 10 . Commitments: At June 30, 2015 , there were no commitments to fund investments in notes receivable and to purchase lease assets . |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2015 | |
Guarantees [Abstract] | |
Guarantees | 11 . Guarantees: The Company enters into contracts that contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. The Managing Member knows of no facts or circumstances that would make the Company’s contractual commitments outside standard mutual covenants applicable to commercial transactions between businesses. Accordingly, the Company believes that these indemnification obligations are made in the ordinary course of business as part of standard commercial and industry practice, and that any potential liability under the Company’s similar commitments is remote. Should any such indemnification obligation become payable, the Company would separately record and/or disclose such liability in accordance with GAAP. |
Members' Capital
Members' Capital | 6 Months Ended |
Jun. 30, 2015 | |
Members' Capital [Abstract] | |
Members' Capital | 12 . Members’ capital: A total of 8,370,015 Units and 8,386,015 we re issued and outstanding at June 30, 2015 and December 31, 2014, including the 50 Units issued to the i nitial Member (Managing Member) , respectively . The Fund was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial Member . The Company has the right, exercisable at the Managing Member’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 U nits is made in accordance with Section 13 of the Amended and Restated Limited Liability Company Operating Agreement. The repurchase would be at the discretion of the Managing Member on terms it determines to be appropriate under given circumstances, in the event that the Managing Member 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. The Fund’s net income or net losses are to be allocated 100 % to the Members. From the commencement of the Fund until the initial closing date, net income and net loss were allocated 99 % to the Managing Member and 1 % to the initial Other Members. Commencing with the initial closing date, net income and net loss are to be allocated 92.5 % to the Other Members and 7.5 % to the Managing Member. Fund distributions are to be allocated 7.5 % to the Managing Member and 92.5 % to the Other Members. The Company commenced periodic distributions in December 2009. Distributions to the Other Members for the three and six months ended June 30, 2015 and 2014 were as follows (in thousands except Units and per Unit data) : Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Distributions declared $ $ $ $ Weighted average number of Units outstanding Weighted average distributions per Unit $ $ $ $ |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 13 . Fair value measurements: Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, generally on a national exchange. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market. Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company's own estimates of assumptions that market participants would use in pricing the asset or liability. At June 30, 2015 and December 31, 2014, only the Company’s warrants were measured on a recurring basis. In addition, the Company recorded non-recurring adjustments to reflect the fair values of certain impaired notes receivable during the six months ended June 30, 2015 and those of impaired off-lease assets during 2014. 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: Warrants (recurring) Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried on the balance sheet at an estimated fair value at the end of the period. The valuation of the warrants was determined using a Black-Scholes formulation of value based upon the stock price(s), the exercise price(s), the volatility of comparable venture companies, and a risk free interest rate for the term(s) of the warrant exercise(s). As of June 30, 2015 and December 31, 2014, the calculated fair value of the Fund’s warrant portfolio approximated $612 thousand and $595 thousand, respectively. Such valuations are classified within Level 3 of the valuation hierarchy. The following table reconciles the beginning and ending balances of the Company’s Level 3 recurring assets (in thousands): Level 3 Assets Balance at December 31, 2014 $ Unrealized gain on warrants, net recorded during the period Balance at June 30, 2015 $ 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. During the first six months of 2015, the Company recorded fair value adjustments totaling $33 thousand relative to two impaired notes. Such adjustment was recorded during the first quarter of 2015. The Company had no fair value adjustments relative to impaired notes receivable during the first six months of 2014, and through December 31, 2014. The fair value adjustments were non-recurring and were based upon an estimated valuation of underlying collateral. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of the impaired notes receivable is classified within Level 3 of the valuation hierarchy. The valuation utilizes a market approach technique and uses inputs from third party appraisers that utilize current market transactions as adjusted for certain factors specific to the underlying collateral. 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 June 30, 2015 (in thousands): June 30, 2015 Level 1 Estimated Fair Value Level 2 Estimated Fair Value Level 3 Estimated Fair Value Assets measured at fair value on a non-recurring basis: Impaired notes receivable, net $ $ - $ - $ Impaired off-lease equipment During the first six months of 2014, the Company recorded fair value adjustments totaling $42 thousand to reduce the cost basis of certain off-lease equipment (assets) deemed impaired. There were no such adjustments during the first six months of 2015. The fair value adjustments were non-recurring. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of impaired lease assets were classified within Level 3 of the valuation hierarchy as the data sources utilized for the valuation of such assets reflect significant inputs that are unobservable in the market. Such valuation utilizes a market approach technique and uses inputs that reflect the sales price of similar assets sold by affiliates and/or information from third party remarketing agents not readily available in the market. The fair value adjustments recorded during the first six months of 2014 represents total adjustments for 2014. As of the third quarter of 2014, all previously impaired off-lease equipment had been disposed . The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation/adjustments categorized as Level 3 in the fair value hierarchy at June 30, 2015 and December 31, 2014: June 30, 2015 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.15 - $1,000.00 Exercise price $0.05 - $1,000.00 Time to maturity (in years) 1.12 - 7.59 Risk-free interest rate 0.31% - 2.12% Annualized volatility 14.84% - 100.00% Notes Receivable Non-recurring Market Approach Third Party Agents' estimate of the value of collateral $4,900 - $66,200 Condition of collateral (equipment) Poor to Average December 31, 2014 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.05 - $1,000.00 Exercise price $0.05 - $1,000.00 Time to maturity (in years) 1.62 - 8.09 Risk-free interest rate 0.50% - 2.04% Annualized volatility 15.88% - 100.00% The following disclosure of the estimated fair value of financial instruments is made in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification. Fair value estimates, methods and assumptions, set forth below for the Company’s financial instruments, are made solely to comply with the requirements of the Financial Instruments Topic and should be read in conjunction with the Company’s financial statements and related notes. The Company determines the estimated fair value amounts by using market information and valuation methodologies that it considers appropriate and consistent with the fair value accounting guidance. Considerable judgment is required to interpret market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Cash and cash equivalents The recorded amounts of the Company’s cash and cash equivalents approximate fair value because of the liquidity and short-term maturity of these instruments. Notes receivable The fair value of the Company’s notes receivable is generally estimated based upon various methodologies deployed by financial and credit management including, but not limited to, credit analysis, third party appraisal and/or discounted cash flow analysis based upon current market valuation techniques and market rates for similar types of lending arrangements, which may consider adjustments for impaired loans as deemed necessary. Investment in securities The Company’s investment securities are not registered for public sale and are carried at cost which management believes approximates fair value, as appropriately adjusted for impairment. Non-recourse debt and Long-term debt The fair value of the Company’s non-recourse and long-term debt is estimated using discounted cash flow analyses, based upon current market borrowing rates for similar types of borrowing arrangements. Commitments and Contingencies Management has determined that no recognition for the fair value of the Company’s loan commitments is necessary because their terms are made on a market rate basis and require borrowers to be in compliance with the Company’s credit requirements at the time of funding. The fair value of contingent liabilities (or guarantees) is not considered material because management believes there has been no event that has occurred wherein a guarantee liability has been incurred or will likely be incurred . The following tables present 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 C odification at June 30, 2015 and December 31, 2014 (in thousands): Fair Value Measurements at June 30, 2015 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ $ $ - $ - $ Notes receivable, net - - Investment in securities - - Fair value of warrants - - Financial liabilities: Non-recourse debt - - Long-term debt - - Fair Value Measurements at December 31, 2014 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ $ $ - $ - $ Notes receivable, net - - Investment in securities - - Fair value of warrants - - Financial liabilities: Non-recourse debt - - Long-term debt - - |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2015 | |
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 , 2015 are not necessarily indicative of the results to be expected for the full year. Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying unaudited financial statements, the Managing Member has reviewed, as determined necessary by the Managing Member, events that have occurred after June 30 , 2015, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, and 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 organized into one operating segment for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States. The primary geographic region in which the Company seeks leasing opportunities is North America and Europe. For the six months ended June 30, 2015 and 2014, and as of June 30, 2015 and December 31, 2014, all of the Company’s operating revenues and long-lived assets relate to customers domiciled in North America. |
Investment in Securities | Investment in securities: Purchased securities Purchased securities are generally not registered for public sale and are carried at cost. Such securities are adjusted to fair value if the fair value is less than the carrying value and such impairment is deemed by the Managing Member to be other than temporary. Factors considered by the Managing Member in determining fair value include , but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. The Company had $333 thousand and $ 318 thousand of purchased securities at June 30 , 2015 and December 31, 2014, respectively. There were no sales or dispositions of securities during the respective three and six months ended June 30 , 2015 and 2014 . Warrants Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet as determined by the Managing Member. During the respective three and six months ended June 30 , 2015, the Company recorded unrealized gains of $1 thousand and $17 thousand on fair valuation of its warrants. By comparison, during the three months ended June 30, 2014, the Company recorded unrealized losses of $101 thousand on fair valuation of its warrants. Such amount also represents total unrealized losses for the six months ended June 30, 2014. The unrealized gains recorded during the current year period increased the estimated fair value of the Company’s portfolio of warrants to $61 2 thousand at June 30 , 2015 from $595 thousand at December 31, 2014. In addition, the Company realized $ 8 thousand of gain s from the net exercise of warrants during the three months ended June 30, 2015. Such amount also represents total gains for the six months ended June 30, 2015. By comparison, during the prior year three- and six-month periods, t he Company realized $51 thousand and $57 thousand of gains from the net exercise of warrants . |
Per Unit Data | Per Unit data: Net income (loss) and distributions per Unit are based upon the weighted average number of Other Members Units outstanding during the period. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year. As a result, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The board will also allow companies to adopt the standard as of the original effective date, which is January 2017, if they are inclined to do so. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company evaluated the impact of the new standard on its financial statements and has determined that such impact is virtually non-existent as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues . In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements – Going Concern (subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The new standard provides guidance relative to management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Management is currently evaluating the standard and its operational and related disclosure requirements . |
Notes Receivable, Net (Tables)
Notes Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Receivable, Net [Abstract] | |
Minimum Future Payments Receivable | As of June 30, 2015, the minimum future payments receivable are as follows (in thousands): Six months ending December 31, 2015 $ Year ending December 31, 2016 Less: portion representing unearned interest income Unamortized initial direct costs Less: allowance for credit losses Notes receivable, net $ |
Initial Direct Costs, Amortization Expense Related to Notes Receivable and Company's Operating and Direct Finance Leases | Initial direct costs (“IDC”) amortization expense related to notes receivable and the Company’s operating and direct finance leases for the three and six months ended June 30, 2015 and 2014 are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 IDC amortization - notes receivable $ $ $ $ IDC amortization - lease assets Total $ $ $ $ |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Allowance for Credit Losses [Abstract] | |
Activity in Allowance for Doubtful Accounts | The Company’s allowance for credit losses are as follows (in thousands): Accounts Receivable Allowance for Doubtful Accounts Valuation Adjustments on Financing Receivables Total Allowance for Credit Losses Notes Receivable Finance Leases Operating Leases Notes Receivable Finance Leases Balance December 31, 2013 $ - $ - $ $ - $ - $ Reversal of provision for credit losses - - - - Balance December 31, 2014 - - - - Provision for credit losses - - - Balance June 30, 2015 $ - $ - $ $ $ - $ |
Recorded Investment in Financing Receivables | As of June 30, 2015 and December 31, 2014, the Company’s allowance for credit losses (related solely to financing receivables) and its recorded investment in financing receivables were as follows follows (in thousands): June 30, 2015 Notes Receivable Finance Leases Total Allowance for credit losses: Ending balance $ $ - $ Ending balance: individually evaluated for impairment $ $ - $ Ending balance: collectively evaluated for impairment $ - $ - $ - Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - Financing receivables: Ending balance $ 1 $ $ Ending balance: individually evaluated for impairment $ $ $ Ending balance: collectively evaluated for impairment $ - $ - $ - Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - 1 Includes $1 of unamortized initial direct costs. December 31, 2014 Notes Receivable Finance Leases Total Allowance for credit losses: Ending balance $ - $ - $ - Ending balance: individually evaluated for impairment $ - $ - $ - Ending balance: collectively evaluated for impairment $ - $ - $ - Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - Financing receivables: Ending balance $ 2 $ $ Ending balance: individually evaluated for impairment $ $ $ Ending balance: collectively evaluated for impairment $ - $ - $ - Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - 2 Includes $3 of unamortized initial direct costs. |
Financing Receivables by Credit Quality Indicator and by Class | At June 30, 2015 and December 31, 2014, the Company’s financing receivables by credit quality indicator and by class of financing receivables are as follows (excludes initial direct costs) (in thousands): Notes Receivable Finance Leases June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Pass $ $ $ $ Special mention - - Substandard - - - Doubtful - - - - Total $ $ $ $ |
Schedule of Impaired Loans | As of June 30, 2015, the Company’s impaired loans were as follows (in thousands): Impaired Loans 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 - Total $ $ $ $ $ - |
Net Investment in Financing Receivables by Age | At June 30 , 2015 and December 31, 2014, the investment in financing receivables is aged as follows (in thousands): June 30, 2015 31-60 Days Past Due 61-90 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment>90 Days and Accruing Notes receivable $ - $ - $ - $ - $ $ $ - Finance leases - - - - - Total $ - $ - $ - $ - $ $ $ - December 31, 2014 31-60 Days Past Due 61-90 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment>90 Days and Accruing Notes receivable $ - $ - $ - $ - $ $ $ - Finance leases - - - - - Total $ - $ - $ - $ - $ $ $ - |
Investments in Equipment and 24
Investments in Equipment and Leases, Net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments in Equipment and Leases, Net [Abstract] | |
Investment in Leases | The Company’s investment in leases consists of the following (in thousands): Balance December 31, 2014 Reclassifications, Additions/ Dispositions and Impairment Losses Depreciation/ Amortization Expense or Amortization of Leases Balance June 30, 2015 Net investment in operating leases $ $ $ $ Net investment in direct financing leases Assets held for sale or lease, net - Initial direct costs, net of accumulated amortization of $232 at June 30, 2015 and $277 at December 31, 2014 - Total $ $ $ $ |
Property on Operating Leases | Property on operating leases consists of the following (in thousands): Balance December 31, 2014 Additions Reclassifications or Dispositions Balance June 30, 2015 Marine vessel $ $ - $ - $ Transportation, rail Manufacturing - Transportation - Materials handling - Construction - - Research - - Agriculture - - Air support equipment - - Office automation - - Other - Less accumulated depreciation Total $ $ $ $ |
Components of Company's Investment in Direct Financing Leases | of June 30, 2015, investment in direct financing leases consists of various types of materials handling and computer-related equipment. As of December 31, 2014, such investment consisted of various types of materials handling, computer-related equipment and cleaning and maintenance equipment. The components of the Company’s investment in direct financing leases as of June 30, 2015 and December 31, 2014 are as follows (in thousands): June 30, 2015 December 31, 2014 Total minimum lease payments receivable $ $ Estimated residual values of leased equipment (unguaranteed) Investment in direct financing leases Less unearned income Net investment in direct financing leases $ $ |
Future Minimum Lease Payments Receivable | At June 30, 2015, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands): Operating Leases Direct Financing Leases Total Six months ending December 31, 2015 $ $ $ Year ending December 31, 2016 - - - $ $ $ |
Schedule of Useful Lives of Lease Assets | The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of June 30, 2015, 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 vessel 20 - 30 Air support equipment 15 - 20 Manufacturing 10 - 15 Agriculture 7 - 10 Cleaning and Maintenance 7 - 10 Construction 7 - 10 Materials handling 7 - 10 Transportation 7 - 10 Research 5 - 7 Computers 3 - 5 Office automation 3 - 5 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement | The Managing Member and/or affiliates earned fees and billed for reimbursements of costs and expenses, pursuant to the Operating Agreement, during the three and six months ended June 30, 2015 and 2014 as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Administrative costs reimbursed to Managing Member and/or affiliates $ $ $ $ Asset management fees to Managing Member Acquisition and initial direct costs paid to Managing Member - - $ $ $ $ |
Non-Recourse Debt (Tables)
Non-Recourse Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Non-Recourse Debt [Abstract] | |
Future Minimum Payments of Non-Recourse Debt | Future minimum payments of non-recourse debt are as follows (in thousands): Principal Interest Total Six months ending December 31, 2015 $ $ $ Year ending December 31, 2016 $ $ $ |
Borrowing Facilities (Tables)
Borrowing Facilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Borrowing Facilities [Abstract] | |
Borrowings under Credit Facility | As of June 30, 2015 and December 31, 2014, borrowings under the Credit Facility were as follows (in thousands): June 30, December 31, 2015 2014 Total available under the financing arrangement $ $ Amount borrowed by the Company under the acquisition facility - - Amounts borrowed by affiliated partnerships and limited liability companies under the venture, acquisition and warehouse facilities Total remaining available under the venture, acquisition and warehouse facilities $ $ |
Members' Capital (Tables)
Members' Capital (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Members' Capital [Abstract] | |
Distributions to Other Members | Distributions to the Other Members for the three and six months ended June 30, 2015 and 2014 were as follows (in thousands except Units and per Unit data) : Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Distributions declared $ $ $ $ Weighted average number of Units outstanding Weighted average distributions per Unit $ $ $ $ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Reconciliation of Level 3 Assets | The following table reconciles the beginning and ending balances of the Company’s Level 3 recurring assets (in thousands): Level 3 Assets Balance at December 31, 2014 $ Unrealized gain on warrants, net recorded during the period Balance at June 30, 2015 $ |
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 June 30, 2015 (in thousands): June 30, 2015 Level 1 Estimated Fair Value Level 2 Estimated Fair Value Level 3 Estimated Fair Value Assets measured at fair value on a non-recurring basis: Impaired notes receivable, net $ $ - $ - $ |
Summary of Valuation Techniques and Significant Unobservable Inputs Used | The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation/adjustments categorized as Level 3 in the fair value hierarchy at June 30, 2015 and December 31, 2014: June 30, 2015 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.15 - $1,000.00 Exercise price $0.05 - $1,000.00 Time to maturity (in years) 1.12 - 7.59 Risk-free interest rate 0.31% - 2.12% Annualized volatility 14.84% - 100.00% Notes Receivable Non-recurring Market Approach Third Party Agents' estimate of the value of collateral $4,900 - $66,200 Condition of collateral (equipment) Poor to Average December 31, 2014 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.05 - $1,000.00 Exercise price $0.05 - $1,000.00 Time to maturity (in years) 1.62 - 8.09 Risk-free interest rate 0.50% - 2.04% Annualized volatility 15.88% - 100.00% |
Estimated Fair Values of Financial Instruments | The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards C odification at June 30, 2015 and December 31, 2014 (in thousands): Fair Value Measurements at June 30, 2015 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ $ $ - $ - $ Notes receivable, net - - Investment in securities - - Fair value of warrants - - Financial liabilities: Non-recourse debt - - Long-term debt - - Fair Value Measurements at December 31, 2014 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ $ $ - $ - $ Notes receivable, net - - Investment in securities - - Fair value of warrants - - Financial liabilities: Non-recourse debt - - Long-term debt - - |
Organization and Limited Liab30
Organization and Limited Liability Company Matters (Narrative) (Details) - USD ($) | Dec. 02, 2009 | Oct. 08, 2009 | Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 12, 2010 | May. 08, 2009 |
Contributions of capital | $ 500 | |||||||
Partnership termination date | Dec. 31, 2030 | |||||||
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 | 120,000 | |||||||
Proceeds from sale of Limited Liability Company Units | $ 1,200,000 | |||||||
Contributions received, net of rescissions | $ 84,000,000 | $ 84,000,000 | ||||||
Reinvestment period | 6 years | |||||||
Minimum [Member] | ||||||||
Amount of aggregate subscriptions for Pennsylvania subscriptions to be released to the Fund | $ 7,500,000 | |||||||
Other Members [Member] | ||||||||
Units issued | 8,370,015 | 8,370,015 | 8,386,015 | |||||
Units outstanding | 8,370,015 | 8,370,015 | 8,386,015 | 8,386,015 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)segment | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Summary of Significant Accounting Policies [Abstract] | |||||
Fair value of warrants | $ 612 | $ 612 | $ 595 | ||
Number of operating segments | segment | 1 | ||||
Number of reportable segments | segment | 1 | ||||
Investment in securities | 333 | $ 333 | $ 318 | ||
Unrealized (loss) gain on warrants, net recorded during the year | 1 | $ (101) | 17 | $ (101) | |
Sales or dispositions of securities | 0 | 0 | 0 | 0 | |
Gain on exercise of warrants | $ 8 | $ 51 | $ 8 | $ 57 |
Notes Receivable, Net (Narrativ
Notes Receivable, Net (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Feb. 28, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Notes receivable, interest rate | 12.00% | ||||
Fair value adjustments which reduced the cost basis of impaired loans | $ 33 | $ 33 | $ 42 | ||
Impaired notes receivable, net | 72 | ||||
Gain on early settlement of notes | 88 | ||||
Interest not recorded relative to the original terms of the non-accrual notes | $ 6 | $ 18 | |||
Notes receivable, composite interest rate | 18.00% | 18.00% | |||
Principal balance | $ 105 | ||||
Net investment balance | $ 105 | $ 0 | |||
Note Receivable One [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Notes receivable, interest rate | 11.73% | ||||
Notes receivable in non-accrual status principal balance outstanding | 85 | ||||
Net investment balance | $ 105 | ||||
Note Receivable Two [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Notes receivable, interest rate | 11.73% | ||||
Notes receivable in non-accrual status principal balance outstanding | $ 105 | ||||
Net investment balance | $ 111 | ||||
Minimum [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Terms of the notes receivable | 36 months | ||||
Notes receivable, interest rate | 10.96% | ||||
Notes maturity period | 2,015 | ||||
Maximum [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Terms of the notes receivable | 42 months | ||||
Notes receivable, interest rate | 18.00% | ||||
Notes maturity period | 2,016 | ||||
Two Additional Notes Receivable [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Net investment balance | $ 199 |
Notes Receivable, Net (Minimum
Notes Receivable, Net (Minimum Future Payments Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Less: portion representing unearned interest income | $ (91) | ||
Less: allowance for credit losses | (42) | $ (5) | $ (15) |
Notes receivable, net | 798 | 1,454 | |
Notes Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Six months ending December 31, 2015 | 520 | ||
Year ending December 31, 2016 | 401 | ||
Financing receivable, gross | 921 | ||
Less: portion representing unearned interest income | (91) | (209) | |
Notes receivable | 830 | 1,451 | |
Unamortized initial direct costs | 1 | 3 | |
Less: allowance for credit losses | (33) | $ 0 | |
Notes receivable, net | $ 798 |
Notes Receivable, Net (Initial
Notes Receivable, Net (Initial Direct Costs, Amortization Expense Related to Notes Receivable and Company's Operating and Direct Finance Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amortization of initial direct costs | $ 19 | $ 31 | $ 41 | $ 62 |
Notes Receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amortization of initial direct costs | 1 | 5 | 2 | 9 |
Lease Assets [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amortization of initial direct costs | $ 18 | $ 26 | $ 39 | $ 53 |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Impaired loans | $ 105 | $ 0 |
Minimum [Member] | ||
Accounts receivable, period for non-accrual status | 90 days | |
Maximum [Member] | ||
Accounts receivable, period for review of impairment | 90 days |
Allowance for Credit Losses (Ac
Allowance for Credit Losses (Activity in Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning Balance | $ 5 | $ 15 | $ 15 | ||
(Reversal of) provision for doubtful accounts | $ 7 | $ 46 | 37 | $ 31 | (10) |
Ending Balance | 42 | 42 | 5 | ||
Notes Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning Balance | 0 | ||||
Ending Balance | $ 33 | $ 33 | $ 0 | ||
Allowance For Doubtful Accounts [Member] | Notes Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning Balance | |||||
(Reversal of) provision for doubtful accounts | |||||
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 doubtful accounts | |||||
Ending Balance | |||||
Allowance For Doubtful Accounts [Member] | Operating Leases [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning Balance | $ 5 | $ 15 | $ 15 | ||
(Reversal of) provision for doubtful accounts | 4 | (10) | |||
Ending Balance | $ 9 | 9 | $ 5 | ||
Valuation Adjustments on Financing Receivables [Member] | Notes Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
(Reversal of) provision for doubtful accounts | 33 | ||||
Ending Balance | $ 33 | $ 33 | |||
Valuation Adjustments on Financing Receivables [Member] | Direct Financing Leases [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning Balance | |||||
(Reversal of) provision for doubtful accounts | |||||
Ending Balance |
Allowance for Credit Losses (Re
Allowance for Credit Losses (Recorded Investment in Financing Receivables) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | ||
Allowances for credit losses: | ||||
Ending balance | $ 33 | |||
Ending balance: individually evaluated for impairment | $ 33 | |||
Ending balance: collectively evaluated for impairment | ||||
Ending balance: loans acquired with deteriorated credit quality | ||||
Notes Receivable, Net [Abstract] | ||||
Ending balance | $ 959 | $ 1,750 | ||
Ending balance: individually evaluated for impairment | $ 959 | $ 1,750 | ||
Ending balance: collectively evaluated for impairment | ||||
Ending balance: loans acquired with deteriorated credit quality | ||||
Notes Receivable [Member] | ||||
Allowances for credit losses: | ||||
Ending balance | $ 33 | |||
Ending balance: individually evaluated for impairment | $ 33 | |||
Ending balance: collectively evaluated for impairment | ||||
Ending balance: loans acquired with deteriorated credit quality | ||||
Notes Receivable, Net [Abstract] | ||||
Ending balance | $ 831 | [1] | $ 1,454 | [2] |
Ending balance: individually evaluated for impairment | $ 831 | $ 1,454 | ||
Ending balance: collectively evaluated for impairment | ||||
Ending balance: loans acquired with deteriorated credit quality | ||||
Notes receivable unamortized initial direct cost | $ 1 | $ 3 | ||
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 | $ 128 | $ 296 | ||
Ending balance: individually evaluated for impairment | $ 128 | $ 296 | ||
Ending balance: collectively evaluated for impairment | ||||
Ending balance: loans acquired with deteriorated credit quality | ||||
[1] | Includes $1 of unamortized initial direct costs. | |||
[2] | Includes $3 of unamortized initial direct costs. |
Allowance for Credit Losses (Fi
Allowance for Credit Losses (Financing Receivables by Credit Quality Indicator and by Class) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes Receivable | $ 830 | $ 1,451 |
Notes Receivable [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes Receivable | 663 | 1,149 |
Notes Receivable [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes Receivable | 62 | 302 |
Notes Receivable [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes Receivable | 105 | |
Lease Assets [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Finance Leases | 128 | 296 |
Lease Assets [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Finance Leases | $ 128 | $ 296 |
Allowance for Credit Losses (Sc
Allowance for Credit Losses (Schedule of Impaired Loans) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Allowance for Credit Losses [Abstract] | ||||
Notes receivable, With no allowance recorded, Recorded investment | ||||
Notes receivable, With no allowance recorded, Unpaid principal balance | ||||
Notes receivable, With no allowance recorded, Average recorded investment | ||||
Notes receivable, With no allowance recorded, Interest income recognized | ||||
Notes receivable, With an allowance recorded, Recorded investment | $ 105 | |||
Notes receivable, With an allowance recorded, Unpaid Principal Balance | 105 | |||
Fair value adjustments which reduced the cost basis of impaired loans | 33 | $ 33 | $ 42 | |
Notes receivable, With an allowance recorded, Average recorded investment | $ 107 | |||
Notes receivable, With an allowance recorded, Interest income recognized | ||||
Recorded investment, Total | $ 105 | $ 0 | ||
Unpaid principal balance, Total | 105 | |||
Average recorded investment, Total | $ 107 | |||
Interest income recognized, Total |
Allowance for Credit Losses (Ne
Allowance for Credit Losses (Net Investment in Financing Receivables by Age) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
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 | $ 958 | $ 1,747 |
Total financing receivable | $ 958 | $ 1,747 |
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 | $ 830 | $ 1,451 |
Total financing receivable | $ 830 | $ 1,451 |
Recorded Investment > 90 Days and Accruing | ||
Finance Leases [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
31-60 Days Past Due | ||
61-90 Days Past Due | ||
Greater Than 90 Days | ||
Total Past Due | ||
Current | $ 128 | $ 296 |
Total financing receivable | $ 128 | $ 296 |
Recorded Investment > 90 Days and Accruing |
Investments in Equipment and 41
Investments in Equipment and Leases, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Property Subject to or Available for Operating Lease [Line Items] | |||||
Depreciation of operating lease assets | $ 2,126 | $ 2,663 | $ 4,418 | $ 5,436 | |
Average estimated residual value of assets on operating leases | 40.00% | 40.00% | 39.00% | ||
Impairment losses | 42 | ||||
Amortization of initial direct costs | $ 19 | 31 | $ 41 | 62 | |
Lease Assets [Member] | |||||
Property Subject to or Available for Operating Lease [Line Items] | |||||
Amortization of initial direct costs | $ 18 | $ 26 | $ 39 | $ 53 |
Investments in Equipment and 42
Investments in Equipment and Leases, Net (Investment in Leases) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Leases Disclosure [Line Items] | ||
Balance December 31, 2014 | $ 49,108 | |
Reclassifications, Additions/ Dispositions and Impairment Losses | (987) | |
Depreciation/ Amortization Expense or Amortization of Leases | (4,617) | |
Balance June 30, 2015 | 43,504 | |
Initial direct costs, accumulated amortization | 232 | $ 277 |
Operating Leases [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2014 | 48,600 | |
Reclassifications, Additions/ Dispositions and Impairment Losses | (1,058) | |
Depreciation/ Amortization Expense or Amortization of Leases | (4,418) | |
Balance June 30, 2015 | 43,124 | |
Direct Financing Leases [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2014 | 296 | |
Reclassifications, Additions/ Dispositions and Impairment Losses | (8) | |
Depreciation/ Amortization Expense or Amortization of Leases | (160) | |
Balance June 30, 2015 | 128 | |
Assets Held for Sale or Lease, Net [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2014 | 101 | |
Reclassifications, Additions/ Dispositions and Impairment Losses | 79 | |
Balance June 30, 2015 | 180 | |
Initial Direct Cost [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2014 | 111 | |
Depreciation/ Amortization Expense or Amortization of Leases | (39) | |
Balance June 30, 2015 | $ 72 |
Investments in Equipment and 43
Investments in Equipment and Leases, Net (Property on Operating Leases) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Property Subject to or Available for Operating Lease [Line Items] | |
Balance December 31, 2014 | $ 48,600 |
Additions | (4,397) |
Reclassifications or Dispositions | (1,079) |
Balance June 30, 2015 | 43,124 |
Marine Vessel [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Balance December 31, 2014 | $ 19,410 |
Additions | |
Reclassifications or Dispositions | |
Balance June 30, 2015 | $ 19,410 |
Transportation, Rail [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Balance December 31, 2014 | 19,079 |
Additions | 21 |
Reclassifications or Dispositions | (263) |
Balance June 30, 2015 | 18,837 |
Manufacturing [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Balance December 31, 2014 | $ 7,858 |
Additions | |
Reclassifications or Dispositions | $ (22) |
Balance June 30, 2015 | 7,836 |
Transportation [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Balance December 31, 2014 | $ 8,028 |
Additions | |
Reclassifications or Dispositions | $ (296) |
Balance June 30, 2015 | 7,732 |
Materials Handling [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Balance December 31, 2014 | $ 11,074 |
Additions | |
Reclassifications or Dispositions | $ (3,747) |
Balance June 30, 2015 | 7,327 |
Construction [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Balance December 31, 2014 | $ 5,353 |
Additions | |
Reclassifications or Dispositions | |
Balance June 30, 2015 | $ 5,353 |
Research [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Balance December 31, 2014 | $ 2,250 |
Additions | |
Reclassifications or Dispositions | |
Balance June 30, 2015 | $ 2,250 |
Agriculture [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Balance December 31, 2014 | $ 851 |
Additions | |
Reclassifications or Dispositions | |
Balance June 30, 2015 | $ 851 |
Air Support Equipment [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Balance December 31, 2014 | $ 120 |
Additions | |
Reclassifications or Dispositions | |
Balance June 30, 2015 | $ 120 |
Office Automation [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Balance December 31, 2014 | $ 27 |
Additions | |
Reclassifications or Dispositions | $ (27) |
Other [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Balance December 31, 2014 | $ 119 |
Additions | |
Reclassifications or Dispositions | $ 1 |
Balance June 30, 2015 | 120 |
Total Property Subject To Or Available For Operating Lease [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Balance December 31, 2014 | 74,169 |
Additions | 21 |
Reclassifications or Dispositions | (4,354) |
Balance June 30, 2015 | 69,836 |
Less Accumulated Depreciation [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Balance December 31, 2014 | (25,569) |
Additions | (4,418) |
Reclassifications or Dispositions | 3,275 |
Balance June 30, 2015 | $ (26,712) |
Investments in Equipment and 44
Investments in Equipment and Leases, Net (Components of Company's Investment in Direct Financing Leases) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Investments in Equipment and Leases, Net [Abstract] | ||
Total minimum lease payments receivable | $ 132 | $ 306 |
Estimated residual values of leased equipment (unguaranteed) | 3 | 11 |
Investment in direct financing leases | 135 | 317 |
Less unearned income | (7) | (21) |
Net investment in direct financing leases | $ 128 | $ 296 |
Investments in Equipment and 45
Investments in Equipment and Leases, Net (Future Minimum Lease Payments Receivable) (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Operating Leases | |
Six months ending December 31, 2015 | $ 4,262 |
Year ending December 31, 2016 | 6,037 |
2,017 | 4,825 |
2,018 | 3,541 |
2,019 | 1,004 |
Operating leases, future minimum payments receivable, total | 19,669 |
Direct Financing Leases | |
Six months ending December 31, 2015 | 111 |
Year ending December 31, 2016 | 21 |
Direct financing leases, future minimum payments receivable, total | 132 |
Total | |
Six months ending December 31, 2015 | 4,373 |
Year ending December 31, 2016 | 6,058 |
2,017 | 4,825 |
2,018 | 3,541 |
2,019 | 1,004 |
Operating and direct financing leases, future minimum payments receivable, total | $ 19,801 |
Investments in Equipment and 46
Investments in Equipment and Leases, Net (Schedule of Useful Lives of Lease Assets) (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Minimum [Member] | Transportation, Rail [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 35 years |
Minimum [Member] | Marine Vessel [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 20 years |
Minimum [Member] | Air Support Equipment [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 15 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] | Manufacturing [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Minimum [Member] | Agriculture [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 7 years |
Minimum [Member] | Cleaning and Maintenance [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 7 years |
Minimum [Member] | Construction [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 7 years |
Minimum [Member] | Transportation [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 7 years |
Minimum [Member] | Research [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 5 years |
Minimum [Member] | Office Automation [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 3 years |
Minimum [Member] | Computers [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 3 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 Vessel [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 30 years |
Maximum [Member] | Air Support Equipment [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 20 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] | Manufacturing [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 15 years |
Maximum [Member] | Agriculture [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Maximum [Member] | Cleaning and Maintenance [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Maximum [Member] | Construction [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Maximum [Member] | Transportation [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Maximum [Member] | Research [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 7 years |
Maximum [Member] | Office Automation [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 5 years |
Maximum [Member] | Computers [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 5 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, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ||||
Administrative costs reimbursed to Managing Member and/or affiliates | $ 318 | $ 390 | $ 684 | $ 774 |
Asset management fees to Managing Member | 169 | 189 | 321 | 385 |
Acquisition and initial direct costs paid to Managing Member | 80 | 165 | ||
Related party transaction, total | $ 487 | $ 659 | $ 1,005 | $ 1,324 |
Non-Recourse Debt (Narrative) (
Non-Recourse Debt (Narrative) (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Schedule of Capitalization, Long-term Debt [Line Items] | |
Gross operating lease rentals and future payments on direct financing leases | $ 15.9 |
Carrying value of pledged assets | $ 35.7 |
Minimum [Member] | |
Schedule of Capitalization, Long-term Debt [Line Items] | |
Fixed Interest rate on note | 1.47% |
Note maturity year | 2,015 |
Maximum [Member] | |
Schedule of Capitalization, Long-term Debt [Line Items] | |
Fixed Interest rate on note | 3.00% |
Note maturity year | 2,019 |
Non-Recourse Debt (Future Minim
Non-Recourse Debt (Future Minimum Payments of Non-Recourse Debt) (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Principal | |
Six months ending December 31, 2015 | $ 2,918 |
Year ending December 31, 2016 | 4,136 |
2,017 | 3,932 |
2,018 | 3,233 |
2,019 | 996 |
Long-term Debt, Total | 15,215 |
Interest | |
Six months ending December 31, 2015 | 179 |
Year ending December 31, 2016 | 270 |
2,017 | 166 |
2,018 | 71 |
2,019 | 8 |
Long Term Debt Interest, Total | 694 |
Total | |
Six months ending December 31, 2015 | 3,097 |
Year ending December 31, 2016 | 4,406 |
2,017 | 4,098 |
2,018 | 3,304 |
2,019 | 1,004 |
Long Term Debt Principal and Interest, Total | $ 15,909 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Debt Instrument [Line Items] | |
Long-term debt | $ 15,215 |
Long-term debt interest | 694 |
Principal and interest, total | 15,909 |
Atel 15, LLC [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
General assets recourse amount | 2,500 |
Marine Vessel [Member] | Atel 15, LLC [Member] | |
Debt Instrument [Line Items] | |
Long-term debt | $ 2,100 |
Long term debt, description | The note bears interest at a fixed-rate of 3.5% per annum, to accrue in arrears on a monthly basis |
Debt maturity date | May 25, 2019 |
Interest rates on borrowings | 3.50% |
Long-term debt interest | $ 400 |
Principal and interest, total | $ 2,500 |
Borrowing Facilities (Narrative
Borrowing Facilities (Narrative) (Details) $ in Thousands | May. 25, 2012USD ($) | Jan. 31, 2014USD ($) | Jun. 30, 2015USD ($) | Apr. 30, 2015USD ($) | Dec. 31, 2014USD ($) |
Line of Credit Facility [Line Items] | |||||
Maximum amount of Credit Facility | $ 60,000 | $ 75,000 | $ 41,067 | $ 56,000 | $ 75,000 |
Line of Credit Facility, Expiration Date | Jun. 30, 2014 | Jun. 30, 2015 | |||
Tangible net worth required under the Credit Facility | $ 10,000 | ||||
Interest coverage ratio | 2 | ||||
Outstanding borrowings under facility | $ 0 | 0 | |||
Maximum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Leverage ratio | 1.25 | ||||
Covenant Requirement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Leverage ratio | 0.55 | ||||
Interest coverage ratio | 22.24 | ||||
Net worth | $ 31,500 | ||||
Warehouse Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding borrowings under facility | $ 0 | $ 0 |
Borrowings Facilities (Borrowin
Borrowings Facilities (Borrowings Under Facility) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Apr. 30, 2015 | Dec. 31, 2014 | Jan. 31, 2014 | May. 25, 2012 |
Borrowing Facilities [Abstract] | |||||
Total available under the financing arrangement | $ 41,067 | $ 56,000 | $ 75,000 | $ 75,000 | $ 60,000 |
Amount borrowed by the Company under the acquisition facility | 0 | 0 | |||
Amounts borrowed by affiliated partnerships and Limited Liability Companies under the venture, acquisition and warehouse facilities | (1,120) | (1,150) | |||
Total remaining available under the venture, acquisition and warehouse facilities | $ 39,947 | $ 73,850 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Commitments [Abstract] | |
Commitments to purchase lease assets | $ 0 |
Members' Capital (Narrative) (D
Members' Capital (Narrative) (Details) - shares | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Members Capital Account [Line Items] | |||
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% | ||
Allocation of net income or net losses | 100.00% | ||
Other Members [Member] | |||
Other Members Capital Account [Line Items] | |||
Members capital account, units issued | 8,370,015 | 8,386,015 | |
Members capital account, units outstanding | 8,370,015 | 8,386,015 | 8,386,015 |
Operating company net income loss allocation percentage from commencement until initial closing date | 1.00% | ||
Operating company net income loss allocation percentage commencing with initial closing date | 92.50% | ||
Percentage of fund distribution | 92.50% | ||
Managing Member [Member] | |||
Other Members Capital Account [Line Items] | |||
Members capital account, units issued | 50 | 50 | |
Operating company net income loss allocation percentage from commencement until initial closing date | 99.00% | ||
Operating company net income loss allocation percentage commencing with initial closing date | 7.50% | ||
Percentage of fund distribution | 7.50% |
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, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | |||||
Distributions declared | $ 3,770 | $ 7,548 | |||
Other Members [Member] | |||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | |||||
Distributions declared | $ 1,883 | $ 1,887 | $ 3,770 | $ 3,774 | $ 7,548 |
Weighted average number of Units outstanding | 8,385,839 | 8,386,015 | 8,385,927 | 8,386,015 | |
Weighted average distributions per Unit | $ 0.22 | $ 0.23 | $ 0.45 | $ 0.45 | $ 0.90 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Fair Value Measurements [Abstract] | ||||
Fair value adjustments which reduced the cost basis of impaired loans | $ 33 | $ 33 | $ 42 | |
Fair value of warrants | $ 612 | $ 595 |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Level 3 Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Unrealized loss on warrants, net recorded during the period | $ 1 | $ (101) | $ 17 | $ (101) |
Level 3 Estimated Fair Value [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Balance at December 31, 2014 | 595 | |||
Unrealized loss on warrants, net recorded during the period | 17 | |||
Balance at June 30, 2015 | $ 612 | $ 612 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurement of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis) (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired notes receivable, net | $ 72 |
Level 1 Estimated Fair Value [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired notes receivable, net | |
Level 2 Estimated Fair Value [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired notes receivable, net | |
Level 3 Estimated Fair Value [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired notes receivable, net | $ 72 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Valuation Techniques and Significant Unobservable Inputs Used) (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Minimum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Model [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Stock price | $ 0.15 | $ 0.05 |
Exercise price | $ 0.05 | $ 0.05 |
Time to maturity (in years) | 1 year 1 month 13 days | 1 year 7 months 13 days |
Risk-free interest rate | 0.31% | 0.50% |
Annualized volatility | 14.84% | 15.88% |
Minimum [Member] | Nonrecurring [Member] | Notes Receivable [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair value inputs, third party agents' pricing quotes per equipment | $ 4,900 | |
Maximum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Model [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Stock price | $ 1,000 | $ 1,000 |
Exercise price | $ 1,000 | $ 1,000 |
Time to maturity (in years) | 7 years 4 months 21 days | 8 years 1 month 2 days |
Risk-free interest rate | 2.12% | 2.04% |
Annualized volatility | 100.00% | 100.00% |
Maximum [Member] | Nonrecurring [Member] | Notes Receivable [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair value inputs, third party agents' pricing quotes per equipment | $ 66,200 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Cash and cash equivalents | $ 4,976 | $ 6,646 |
Notes receivable, net | 798 | 1,454 |
Investment in securities | 333 | 318 |
Fair value of warrants | 612 | 595 |
Financial liabilities: | ||
Non-recourse debt | 15,295 | 19,287 |
Long-term debt | 2,230 | 2,170 |
Level 1 Estimated Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | $ 4,976 | $ 6,646 |
Level 2 Estimated Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | ||
Notes receivable, net | ||
Investment in securities | ||
Fair value of warrants | ||
Financial liabilities: | ||
Non-recourse debt | ||
Long-term debt | ||
Level 3 Estimated Fair Value [Member] | ||
Financial assets: | ||
Notes receivable, net | $ 798 | $ 1,454 |
Investment in securities | 333 | 318 |
Fair value of warrants | 612 | 595 |
Financial liabilities: | ||
Non-recourse debt | 15,295 | 19,287 |
Long-term debt | 2,230 | 2,170 |
Carrying Amount [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 4,976 | 6,646 |
Notes receivable, net | 798 | 1,454 |
Investment in securities | 333 | 318 |
Fair value of warrants | 612 | 595 |
Financial liabilities: | ||
Non-recourse debt | 15,215 | 19,279 |
Long-term debt | $ 2,068 | $ 2,068 |