Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | ATEL 14, LLC | ||
Entity Central Index Key | 1,463,389 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 0 | ||
Entity Units Outstanding | 8,364,555 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 2,817 | $ 6,646 |
Accounts receivable, net of allowance for doubtful accounts of $10 at December 31, 2015 and $5 at December 31, 2014 | 154 | 175 |
Notes receivable, net of unearned interest income of $70 and allowance for credit losses of $63 at December 31, 2015 and net of unearned interest income of $209 and allowance for credit losses of $0 at December 31, 2014 | 398 | 1,454 |
Investment in securities | 368 | 318 |
Fair value of warrants | 569 | 595 |
Investments in equipment and leases, net of accumulated depreciation of $28,907 at December 31, 2015 and $25,888 at December 31, 2014 | 39,120 | 49,108 |
Due from affiliates | 154 | |
Prepaid expenses and other assets | 98 | 105 |
Total assets | 43,524 | 58,555 |
Accounts payable and accrued liabilities: | ||
Managing Member | 75 | 66 |
Affiliates | 1 | |
Accrued distributions to Other Members | 813 | 816 |
Other | 305 | 285 |
Deposits due lessees | 25 | |
Non-recourse debt | 12,297 | 19,279 |
Long-term debt | 2,068 | 2,068 |
Unearned operating lease income | 243 | 516 |
Total liabilities | $ 15,802 | $ 23,055 |
Commitments and contingencies | ||
Members' capital: | ||
Managing Member | ||
Other Members | $ 27,722 | $ 35,500 |
Total Members' capital | 27,722 | 35,500 |
Total liabilities and Members' capital | $ 43,524 | $ 58,555 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts receivable, allowance for doubtful accounts | $ 10 | $ 5 |
Notes receivable, unearned interest income | 70 | 209 |
Allowance for credit losses | 73 | 5 |
Investments in equipment and leases, accumulated depreciation | 28,907 | 25,888 |
Notes Receivable [Member] | ||
Notes receivable, unearned interest income | 70 | |
Allowance for credit losses | $ 63 | $ 0 |
Statements of Income
Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Leasing and lending activities: | ||
Operating leases | $ 11,095 | $ 13,171 |
Direct financing leases | 23 | 56 |
Interest on notes receivable | 84 | 269 |
Gain on sales of lease assets and early termination of notes receivable | 493 | 1,893 |
Gain on sales or dispositions of investment in securities | 137 | 79 |
Unrealized loss on fair valuation of warrants | (26) | (189) |
Other | 69 | 32 |
Total revenues | 11,875 | 15,311 |
Expenses: | ||
Depreciation of operating lease assets | 8,034 | 10,321 |
Asset management fees to Managing Member | 573 | 733 |
Acquisition expense | 63 | |
Cost reimbursements to Managing Member and/or affiliates | 1,190 | 1,535 |
Provision for (reversal of) credit losses | 68 | (10) |
Impairment losses on equipment | 49 | 67 |
Amortization of initial direct costs | 67 | 110 |
Interest expense | 476 | 664 |
Professional fees | 130 | 136 |
Outside services | 70 | 65 |
Taxes on income and franchise fees | 90 | 25 |
Bank charges | 135 | 195 |
Railcar maintenance | 316 | 445 |
Other | 238 | 188 |
Total expenses | 11,436 | 14,537 |
Net income | 439 | 774 |
Net income (loss): | ||
Managing Member | 611 | 612 |
Other Members | (172) | 162 |
Net income | $ 439 | $ 774 |
Net income (loss) per Limited Liability Company Unit (Other Members) | $ (0.02) | $ 0.02 |
Weighted average number of Units outstanding | 8,376,885 | 8,386,015 |
Statements of Changes in Member
Statements of Changes in Members' Capital - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Beginning Balance (in Units) | 8,386,015 | |
Beginning Balance | $ 35,500 | $ 42,886 |
Repurchase of Units | (74) | |
Distributions to Other Members | (7,532) | (7,548) |
Net (loss) income | $ 439 | $ 774 |
Ending Balance (in Units) | 8,367,055 | 8,386,015 |
Ending Balance | $ 27,722 | $ 35,500 |
Other Members [Member] | ||
Beginning Balance (in Units) | 8,386,015 | 8,386,015 |
Beginning Balance | $ 35,500 | $ 42,886 |
Repurchase of Units (in Units) | (18,960) | |
Repurchase of Units | $ (74) | |
Distributions to Other Members | (7,532) | (7,548) |
Net (loss) income | $ (172) | $ 162 |
Ending Balance (in Units) | 8,367,055 | 8,386,015 |
Ending Balance | $ 27,722 | $ 35,500 |
Managing Member [Member] | ||
Distributions to Other Members | (611) | (612) |
Net (loss) income | $ 611 | $ 612 |
Statements of Changes in Membe6
Statements of Changes in Members' Capital (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statements of Changes in Members' Capital [Abstract] | ||
Distributions to Other Members, per unit | $ 0.90 | $ 0.90 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities: | ||
Net income | $ 439 | $ 774 |
Adjustment to reconcile net income to cash provided by operating activities: | ||
Gain on sales of lease assets and early termination of notes receivable | (493) | (1,893) |
Depreciation of operating lease assets | 8,034 | 10,321 |
Amortization of initial direct costs | 67 | 110 |
Provision for (reversal of) credit losses | 68 | (10) |
Impairment losses on equipment | 49 | 67 |
Gain on sales or dispositions of investment in securities | (137) | (79) |
Unrealized loss on fair valuation of warrants | 26 | 189 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 16 | 74 |
Prepaid expenses and other assets | 7 | 11 |
Accounts payable, Managing Member | 9 | |
Accounts payable, other | 20 | 50 |
Accrued liabilities, affiliates | 155 | (479) |
Deposits due lessees | (25) | |
Unearned operating lease income | (273) | 129 |
Net cash provided by operating activities | 7,962 | 9,264 |
Investing activities: | ||
Improvements on operating leases | (21) | (139) |
Purchase of securities | (16) | (25) |
Proceeds from sales of lease assets and early termination of notes receivable | 2,258 | 6,619 |
Principal payments received on direct financing leases | 267 | 330 |
Proceeds from sales or dispositions of investment in securities | 103 | 79 |
Principal payments received on notes receivable | 820 | 1,852 |
Net cash provided by investing activities | 3,411 | 8,716 |
Financing activities: | ||
Borrowings under non-recourse debt | 3,189 | |
Repayments under non-recourse debt | (6,982) | (9,453) |
Repurchase or rescissions of Units | (74) | |
Net cash used in financing activities | (15,202) | (14,424) |
Net (decrease) increase in cash and cash equivalents | (3,829) | 3,556 |
Cash and cash equivalents at beginning of year | 6,646 | 3,090 |
Cash and cash equivalents at end of year | 2,817 | 6,646 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the year for interest | 403 | 600 |
Cash paid during the year for taxes | 72 | 49 |
Schedule of non-cash transactions: | ||
Securities acquired through net exercise of warrants | 34 | |
Other Members [Member] | ||
Operating activities: | ||
Net income | (172) | 162 |
Financing activities: | ||
Distributions to Members | (7,535) | (7,548) |
Schedule of non-cash transactions: | ||
Distributions payable to Members at year-end | 813 | 816 |
Managing Member [Member] | ||
Operating activities: | ||
Net income | 611 | 612 |
Financing activities: | ||
Distributions to Members | (611) | (612) |
Schedule of non-cash transactions: | ||
Distributions payable to Members at year-end | $ 66 | $ 66 |
Organization and Limited Liabil
Organization and Limited Liability Company Matters | 12 Months Ended |
Dec. 31, 2015 | |
Organization and Limited Liability Company Matters [Abstract] | |
Organization and Limited Liability Company Matters | 1. Organization and Limited Liability Company matters: ATEL 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 December 31, 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, 8,367,05 5 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 has 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 (Note 7). The Company is required to maintain reasonable cash reserves for working capital, the repurchase of Units and contingencies. The repurchase of Units is solely at the discretion of the Managing Member. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of significant accounting policies: Basis of presentation : The accompanying balance sheets as of Dece mber 31, 2015 and 2014 , and the related statements of income, changes in members’ capital, and cash flows for the years then ended, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission. Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no significant effect on the reported financial position or results from operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after December 31, 2015 , up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, and adjustments thereto. Cash and cash equivalents: Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less. Use of Estimates: The preparation of the 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 the 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. Accounts receivable: Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and notes receivable which are currently due to the Company. Allowances for doubtful accounts are typically established based on historical charge off and collection experience and the collectability 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. Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating and direct financing lease receivables, notes receivable and accounts receivable. The Company places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Funds’ cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts and notes receivable represent amounts due from lessees or borrowers in various industries, related to equipment on operating and direct financing leases or notes receivable. Equipment on operating leases and related revenue recognition: Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with ASC 840-20-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360-10-35-43). The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized. Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 84 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances . Direct financing leases and related revenue recognition: Income from direct financing lease transactions is reported using the financing method of accounting, in which the Company’s investment in the leased property is reported as a receivable from the lessee to be recovered through future rentals. The interest income portion of each rental payment is calculated so as to generate a constant rate of return on the net receivable outstanding. Allowances for losses on direct financing leases are typically established based on historical charge-off and collection experience and the collectability of specifically identified lessees and billed and unbilled receivables. Direct financing leases are charged off to the allowance as they are deemed uncollectible. Direct financing leases are generally placed in a non-accrual status (i.e., no revenue is recognized) and deemed impaired when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of all direct finance lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related direct financing leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, all payments received are applied only against outstanding principal balances. Notes receivable, unearned interest income and related revenue recognition: The Company records all future payments of principal and interest on notes as notes receivable, which are then offset by the amount of any related unearned interest income. For financial statement purposes, the Company reports only the net amount of principal due on the balance sheet. The unearned interest is recognized over the term of the note and the income portion of each note payment is calculated so as to generate a constant rate of return on the net balance outstanding. Any fees or costs related to notes receivable are recorded as part of the net investment in notes receivable and amortized over the term of the loan. Allowances for losses on notes receivable are typically established based on historical charge off and collection experience and the collectability of specifically identified borrowers and billed and unbilled receivables. Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. If it is determined that a loan is impaired with regard to scheduled payments, the Company will perform an analysis of the note to determine if an impairment valuation reserve is necessary. This analysis considers the estimated cash flows from the note, or the collateral value of the property underlying the note when note repayment is collateral dependent. Any required valuation reserve is charged to earnings when determined; and notes are charged off to the allowance as they are deemed uncollectible. Notes receivable are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of companies with note payments outstanding less than 90 days. Based upon management’s judgment, the related notes may be placed on non-accrual status. Notes placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid receivable is probable. Until such time, all payments received are applied only against outstanding principal balances. Initial direct costs: The Company capitalizes initial direct costs (“IDC”) associated with the origination and funding of lease assets and investments in notes receivable. IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease and loan originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease (or note by note) basis based on actual lease term using a straight-line method for operating leases and the effective interest rate method for direct financing leases and notes receivable. Upon disposal of the underlying lease assets and notes receivable, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases or notes receivable that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense. Acquisition expense: Acquisition expense represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses and miscellaneous expenses related to the selection and acquisition of equipment which are reimbursable to the Managing Member under the terms of the Operating Agreement. As the costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred. Asset valuation: Recorded values of the Company’s lease asset portfolio are periodically reviewed for impairment. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the market place are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Segment reporting: The Company is 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 Company’s principal decision makers are the Managing Member’s Chief Executive Officer and its Chief Financial Officer and Chief Operating Officer. The Company believes that its equipment leasing business operates as one reportable segment because: a) the Company measures profit and loss at the equipment portfolio level as a whole; b) the principal decision makers do not review information based on any operating segment other than the equipment leasing transaction portfolio; c) the Company does not maintain discrete financial information on any specific segment other than its equipment financing operations; d) the Company has not chosen to organize its business around different products and services other than equipment lease financing; and e) the Company has not chosen to organize its business around geographic areas. The primary geographic region in which the Company s eeks leasing opportunities is North America. For the years ended December 31, 2015 and 2014, and as of December 31, 2015 and 2014, all of the Company’s current 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 $3 68 thousand and $ 318 thousand of purchased securities at December 31, 2015 and 201 4 , respectively. Based upon the Company’s review of its portfolio, no fair value adjustment was deemed necessary for 2015 and 201 4 . There were also no sales or disposition of securities in 201 5 and 201 4 . 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. The Company recorded unrealized losses of $ 26 thousand and $189 thousand on fair valuation of its warrants during 201 5 and 201 4 , res pectively. The unrealized losses recorded during 2015 reduced the estimated fair value of the Company’s portfolio of warrants to $ 5 6 9 thousand at December 31, 2015 from $595 thousand at December 31, 2014. The Company also realized $1 37 thousand and $79 thousand of gains from the net exercise of warrants during 201 5 and 201 4 , respectively. Unearned operating lease income: The Company records prepayments on operating leases as a liability under the caption of unearned operating lease income. The liability is recorded when prepayments are received and recognized as operating lease revenue over the period to which the prepayments relate using a straight-line method. Income Taxes: The Company is treated as a partnership for federal income tax purposes. Pursuant to the provisions of Section 701 of the Internal Revenue Code, a partnership is not subject to federal income taxes. Accordingly, the Company has provided current franchise income taxes for only those states which levy income taxes on partnerships. For the years ended December 31, 2015 and 2014, the related provision for state income taxes was approximately $ 90 thousand and $25 thousand, respectively. The Company does not have any entity level uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions and is generally subject to examination by U.S. federal (or state and local) income tax authorities for three years from the filing of a tax return. The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2015 and 2014 as follows (in thousands) : 2015 2014 Financial statement basis of net assets $ 27,722 $ 35,500 Tax basis of net assets (unaudited) 27,413 33,823 Difference $ 309 $ 1,677 The primary differences between the tax bases of net assets and the amounts recorded in the financial statements are the result of differences in accounting for syndication costs and differences between the depreciation methods used in the financial statements and the Company’s tax returns. The following reconciles the net income reported in these financial statements to the income reported on the Company’s federal tax return (unaudited) for the years ended December 31, 2015 and 2014 (in thousands): 2015 2014 Net income per financial statements $ 439 $ 774 Tax adjustments (unaudited): Adjustment to depreciation expense 320 (418) Provision for losses and doubtful accounts 4 (10) Adjustments to revenues (48) 704 Adjustments to gain on sales of assets 669 2,173 Other 391 (283) Income per federal tax return (unaudited) $ 1,775 $ 2,940 Per Unit data: Net income (loss) and distributions per Unit are based upon the weighted average number of Other Members Units outstanding during the year. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts from Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company evaluated the impact of the new standard on its financial statements and has determined that such impact is virtually non-existent as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues. In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements — Going Concern (subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU-2014-15”). The new standard provides guidance relative to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Management does not expect the adoption of ASU 2014-15 to have a material impact on the Company’s financial statements or related disclosures . |
Concentration of Credit Risk an
Concentration of Credit Risk and Major Customers | 12 Months Ended |
Dec. 31, 2015 | |
Concentration of Credit Risk and Major Customers [Abstract] | |
Concentration of Credit Risk and Major Customers | 3. Concentration of credit risk and major customers: The Company leases equipment to lessees and provides debt financing to borrowers in diversified industries. Leases and notes receivable are subject to the Managing Member’s credit committee review. The leases and notes receivable provide for the return of the equipment to the Company upon default. As of December 31, 201 5 and 201 4 , there were concentrations (greater than or equal to 10% as a percentage of total equipment cost) of equipment leased to lessees and/or financed for borrowers in certain industries as follows: Percentage of Total Equipment Cost Industry 2015 2014 Natural gas 29% 26% Manufacturing 25% 30% Wholesale, nondurable goods 13% 12% During 201 5 and 201 4 , certain lessees and/or financial borrowers generated significant portions (defined as greater than or equal to 10%) of the Company’s total leasing and lending revenues, excluding gains or losses on disposition of assets, as follows: Percentage of Total Leasing and Lending Revenues Lessee Type of Equipment 2015 2014 Halliburton Overseas Limited Marine vessel 22% 18% Cummins Materials handling 11% 13% These percentages are not expected to be comparable in future periods due to anticipated changes in the mix of investments and/or lessees as a result of normal business activities. |
Notes Receivable, Net
Notes Receivable, Net | 12 Months Ended |
Dec. 31, 2015 | |
Notes Receivable [Abstract] | |
Notes Receivable, Net | 4 . Notes receivable, net: The Company has various notes receivable from borrowers who have financed the purchase of equipment through the Company . As of December 31, 2015, the original terms of the notes are from 36 to 42 months with interest at rates ranging from 1 2 . 35 % to 18.00 % per annum . The notes are secured by the equipment financed and have maturity dates in 2016 . 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 December 31, 2015. The two notes fully paid in February 2015 were originally placed on non-accrual 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 the 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 September 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 December 31, 2015 had a combined net recorded investment of $99 thousand and $111 thousand as of December 31, 2015 and 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 2015, management continued to deem the notes impaired and recorded fair value adjustments totaling $63 thousand. As of December 31, 2015, the fair value of such notes totaled $36 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, additional modifications were made which extended the interest only payments through October 31, 2015. Such date was further extended during the fourth quarter of 2015 to June 30, 2016. The entire balance outstanding on these notes is expected to be paid on July 1, 2016 . 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 $8 thousand from December 2014 to December 2015. As of December 31, 2015 , the minimum future payments receivable are as follows (in thousands): Year ending December 31, 2016 531 531 Less: portion representing unearned interest income (70) 461 Less: allowance for credit losses (63) Notes receivable, net $ 398 IDC amortization expense related to notes receivable and the Company’s operating and direct finance leases for the years ended December 31 , 2015 and 2014 are as follows (in thousands): 2015 2014 IDC amortization - notes receivable $ 3 $ 12 IDC amortization - lease assets 64 98 Total $ 67 $ 110 |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2015 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses | 5 . Allowance for credit losses : The Company’s allowance for credit losses are as follows (in thousands): Accounts Receivable Allowance for Doubtful Accounts Valuation Adjustments on Financing Receivables Total Allowance for Credit Losses Notes Receivable Finance Leases Operating Leases Notes Receivable Finance Leases Balance December 31, 2013 $ - $ - $ 15 $ - $ - $ 15 Reversal of provision for credit losses - - (10) - - (10) Balance December 31, 2014 - - 5 - - 5 Provision for credit losses - - 5 63 - 68 Balance December 31, 2015 $ - $ - $ 10 $ 63 $ - $ 73 Accounts R eceivable Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and notes receivable which are currently due to the Company. Allowances for doubtful accounts are typically established based upon their aging and historical charge off and collection experience and the creditworthiness of specifically identified lessees and borrowers, and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received. Accounts receivable are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of companies with lease or note payments outstanding less than 90 days. Based upon management’s judgment, such leases or notes may be placed in non-accrual status. Leases or notes placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid receivable is probable. Until such time, revenues on operating leases are recognized on a cash basis. All payments received on amounts billed under direct financing leases contracts and notes receivable are applied only against outstanding principal balances. Financing R eceivable s In addition to the allowance established for delinquent accounts receivable, the total allowance related solely to financing receivables also includes anticipated impairment charges on notes receivable and direct financing leases. Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest when due. If it is determined that a loan is impaired with regard to scheduled payments, the Company will perform an analysis of the note to determine if an impairment valuation reserve is necessary. This analysis considers the estimated cash flows from the note, or the collateral value of the property underlying the note when note repayment is collateral dependent. Any required valuation reserve is charged to earnings when determined; and notes are charged off to the allowance as they are deemed uncollectible. The asset underlying a direct financing lease contract is considered impaired if the estimated undiscounted future cash flows of the asset are less than its net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the market place are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. As of December 31, 2015 and 2014, the Company’s allowance for credit losses (related solely to financing receivables) and its recorded investment in financing receivables were as follows (in thousands): December 31, 2015 Notes Receivable Finance Leases Total Allowance for credit losses: Ending balance $ 63 $ - $ 63 Ending balance: individually evaluated for impairment $ 63 $ - $ 63 Ending balance: collectively evaluated for impairment $ - $ - $ - Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - Financing receivables: Ending balance $ 461 $ 62 $ 523 Ending balance: individually evaluated for impairment $ 461 $ 62 $ 523 Ending balance: collectively evaluated for impairment $ - $ - $ - Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - 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 $ 1,454 1 $ 296 $ 1,750 Ending balance: individually evaluated for impairment $ 1,454 $ 296 $ 1,750 Ending balance: collectively evaluated for impairment $ - $ - $ - Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - 1 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 December 31, 2015 and 2014 , the Company’s financing receivables by credit quality indicator and by class of financing receivables are as follows (excludes initial direct costs) (in thousands): Notes Receivable Finance Leases 2015 2014 2015 2014 Pass $ 362 $ 1,149 $ 62 $ 296 Special mention - 302 - - Substandard 99 - - - Doubtful - - - - Total $ 461 $ 1,451 $ 62 $ 296 As of December 31, 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 99 99 63 104 - Total $ 99 $ 99 $ 63 $ 104 $ - There were no impaired loans as of December 31, 2014. At December 31 , 2015 and 2014, the investment in financing receivables is aged as follows (in thousands): December 31, 2015 31-60 Days Past Due 61-90 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment>90 Days and Accruing Notes receivable $ - $ - $ - $ - $ 461 $ 461 $ - Finance leases - - - - 62 62 - Total $ - $ - $ - $ - $ 523 $ 523 $ - 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 $ - $ - $ - $ - $ 1,451 $ 1,451 $ - Finance leases - - - - 296 296 - Total $ - $ - $ - $ - $ 1,747 $ 1,747 $ - 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 December 31, 2015 (See Note 4). |
Investments in Equipment and Le
Investments in Equipment and Leases, Net | 12 Months Ended |
Dec. 31, 2015 | |
Investments in Equipment and Leases, Net [Abstract] | |
Investments in Equipment and Leases, Net | 6 . Investments in equipment and leases, net: The Company’s investment in leases consists of the following (in thousands): Balance December 31, 2014 Reclassifications, Improvements/ Dispositions and Impairment Losses Depreciation/ Amortization Expense or Amortization of Leases Balance December 31, 2015 Net investment in operating leases $ 48,600 $ (2,163) $ (8,034) $ 38,403 Net investment in direct financing leases 296 33 (267) 62 Assets held for sale or lease, net 101 507 - 608 Initial direct costs, net of accumulated amortization of $96 at December 31, 2015 and $277 at December 31, 2014 111 - (64) 47 Total $ 49,108 $ (1,623) $ (8,365) $ 39,120 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 recorded $49 thousand and $67 thousand of fair value adjustments during 2015 and 2014, respectively, to reduce the cost basis of certain impaired off-lease research equipment. 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 $ 8.0 million and $ 10.3 million for the years ended December 31, 2015 and 2014, respectively. IDC amortization expense related to the Company’s operating and direct financing leases totaled $64 thousand and $98 thousand for 2015 and 2014, respectively. All of the Company’s lease asset purchases and capital improvements were made during the years from 2009 through 201 5 . Operating leases: Property on operating leases consists of the following (in thousands): Balance December 31, 2014 Improvements Reclassifications or Dispositions Balance December 31, 2015 Marine vessel $ 19,410 $ - $ - $ 19,410 Transportation, rail 19,079 21 (263) 18,837 Manufacturing 7,858 - (26) 7,832 Transportation 8,028 - (512) 7,516 Materials handling 11,074 - (5,421) 5,653 Construction 5,353 - (2,348) 3,005 Research 2,250 - - 2,250 Agriculture 851 - - 851 Air support equipment 120 - - 120 Office automation 27 - (27) - Other 119 - - 119 74,169 21 (8,597) 65,593 Less accumulated depreciation (25,569) (8,034) 6,413 (27,190) Total $ 48,600 $ (8,013) $ (2,184) $ 38,403 The average estimated residual value for assets on operating leases was 37% and 3 9 % of the assets’ original cost at December 31, 2015 and 2014, respectively. There were no operating leases in non-accrual status at both December 31, 2015 and 2014. Direct financing leases: As of December 31, 2015, investment in direct financing leases consists of various types of materials handling equipment. As of December 31, 2014, such investment in direct financing leases consisted of various types of materials handling, computer-related and cleaning and maintenance equipment. The components of the Company’s investment in direct financing leases as of December 31, 2015 and 2014 are as follows (in thousands): 2015 2014 Total minimum lease payments receivable $ 94 $ 306 Estimated residual values of leased equipment (unguaranteed) 4 11 Investment in direct financing leases 98 317 Less unearned income (36) (21) Net investment in direct financing leases $ 62 $ 296 As of December 31, 2015 and 2014, there were no investments in direct financing leases in non-accrual status. At December 31 , 2015 , the aggregate amounts of future minimum lease payments receivable are as follows (in thousands): Operating Leases Direct Financing Leases Total Year ending December 31, 2016 $ 6,818 $ 46 $ 6,864 2017 5,562 26 5,588 2018 4,142 22 4,164 2019 1,004 - 1,004 $ 17,526 $ 94 $ 17,620 The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of December 31, 201 5 and 201 4 , 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 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7 . Related party transactions: The terms of the Operating Agreement provide that 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 , Inc. 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, pursuant to the Operating Agreement, during the years ended December 31, 201 5 and 201 4 as follows (in thousands): 2015 2014 Administrative costs reimbursed to Managing Member and/or affiliates $ 1,190 $ 1,535 Asset management fees to Managing Member 573 733 Acquisition and initial direct costs paid to Managing Member - 63 $ 1,763 $ 2,331 |
Non-Recourse Debt
Non-Recourse Debt | 12 Months Ended |
Dec. 31, 2015 | |
Non-Recourse Debt [Abstract] | |
Non-Recourse Debt | 8 . Non-recourse debt: At December 31 , 201 5 , 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 1.53 % to 3.00 % per annum . The note s are secured by assignments of lease payments and pledges of assets. At December 31, 2015 , gross operating lease rentals totaled approximately $ 12 . 8 million over the remaining lease terms; and the carrying value of the pledged assets is $ 23 . 8 million. The notes mature at various dates from 201 6 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 lender on (and only on) the discounted lease transactions. The lender 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 lender, such as warranties as to genuineness of the transaction parties' signatures, as to the genuineness of the respective lease chattel paper or the transaction as a whole, or as to the Company's good title to or perfected interest in the secured collateral, as well as similar representations, warranties and covenants typically provided by non-recourse borrowers and customary in the equipment finance industry, and are viewed by such industry as being consistent with non-recourse discount financing obligation s . Accordingly, as there are no financial covenants or ratios imposed on the Company in connection with the non-recourse debt , the Company has determined that there are no material covenants with respect to the non-recourse debt that warrant footnote disclosure. Future minimum payments of non-recourse debt are as follows (in thousands): Principal Interest Total Year ending December 31, 2016 $ 4,136 $ 270 $ 4,406 2017 3,932 166 4,098 2018 3,233 71 3,304 2019 996 8 1,004 $ 12,297 $ 515 $ 12,812 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 9. Long-term debt: As of December 31, 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 | 12 Months Ended |
Dec. 31, 2015 | |
Borrowing Facilities [Abstract] | |
Borrowing Facilities | 10 . 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 . As of September 30, 2015, the Credit Facility was amended to increase the line to $75.0 million, add certain institutional fund affiliates as borrowers and extend the expiration date to June 30, 2017 . 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 December 31, 2015 and 2014, borrowings under the Credit Facility were as follows (in thousands): 2015 2014 Total available under the financing arrangement $ 75,000 $ 75,000 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 (1,090) (1,150) Total remaining available under the venture, acquisition and warehouse facilities $ 73,910 $ 73,850 The Company and its affiliates pay an annual commitment fee to have access to this line of credit. As of December 31, 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 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 December 31 , 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 $ 27 . 7 million, 0. 52 to 1, and 21. 53 to 1 , respectively, as of December 31 , 2015 . As such, as of December 31, 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 December 31 , 2015 and 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 December 31, 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 December 31, 2015 and 2014 . |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Commitments [Abstract] | |
Commitments | 11 . Commitments: At December 31, 2015 , there were no commitments to purchase lease assets and fund investments in notes receivable . |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2015 | |
Guarantees [Abstract] | |
Guarantees | 12 . Guarantees: The Company enters into contracts that contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. The Managing Member knows of no facts or circumstances that would make the Company’s contractual commitments outside standard mutual covenants applicable to commercial transactions between businesses. Accordingly, the Company believes that these indemnification obligations are made in the ordinary course of business as part of standard commercial and industry practice, and that any potential liability under the Company’s similar commitments is remote. Should any such indemnification obligation become payable, the Company would separately record and/or disclose such liability in accordance with GAAP. |
Members' Capital
Members' Capital | 12 Months Ended |
Dec. 31, 2015 | |
Members' Capital [Abstract] | |
Members' Capital | 13 . Members’ capital: A total of 8,3 6 7 ,0 5 5 Units and 8,386,015 Units we re issued and outstanding at December 31, 2015 and 2014, respectively, including the 50 Units issued to the i nitial Member (Managing Member). 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 years ended December 31, 2015 and 2014 were as follows (in thousands except Units and per Unit data): 2015 2014 Distributions declared $ 7,532 $ 7,548 Weighted average number of Units outstanding 8,376,885 8,386,015 Weighted average distributions per Unit $ 0.90 $ 0.90 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 14 . Fair value measurements: Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, generally on a national exchange. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market. Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company's own estimates of assumptions that market participants would use in pricing the asset or liability. At December 31, 2015 and 2014, only the Company’s warrants were measured on a recurring basis. During the same comparative years, the Company recorded non-recurring adjustments to reduce the cost basis of certain assets deemed impaired. Such non-recurring adjustments reduced the cost basis of impaired equipment and notes receivable during 2015 and those of impaired equipment during 2014. All of the equipment impaired during 2014 were disposed of by the third quarter of 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 December 31, 2015 and 2014, the calculated fair value of the Fund’s warrant portfolio approximated $ 5 6 9 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 $ 595 Unrealized loss on warrants, net recorded during the year (26) Balance at December 31, 2015 $ 569 Impaired notes receivable (non-recurring) 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 2015, the Company recorded fair value adjustments totaling $63 thousand relative to two impaired notes. 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. There were no such adjustments during 2014. Impaired off-lease equipment (non-recurring) During 2015 and 2014, the Company recorded fair value adjustments totaling $49 thousand and $67 thousand, respectively, to reduce the cost basis of certain off-lease equipment (assets) deemed impaired. The fair value adjustments recorded during 2015 and 2014 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. As previously mentioned, all equipment impaired during 2014 had been disposed of by the third quarter of 2014. 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 December 31, 2015 (in thousands): December 31, 2015 Level 1 Estimated Fair Value Level 2 Estimated Fair Value Level 3 Estimated Fair Value Assets measured at fair value on a non-recurring basis: Impaired notes receivable, net $ 36 $ - $ - $ 36 Impaired off-lease equipment 200 - - 200 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 December 31, 2015 and 2014: December 31, 2015 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.35 - $1,000.00 Exercise price $0.36 - $1,000.00 Time to maturity (in years) 0.62 - 7.0 1 Risk-free interest rate 0.52% - 2. 09 % Annualized volatility 13.96% - 100.00% Notes Receivable Non-recurring Market Approach Third Party Agents' estimate of the value of collateral $6,530 - $17,051 Condition of collateral (equipment) Poor to Average Lease Equipment Non-recurring Market Approach Third Party Agents' estimate of the value of collateral $200,000 (total of $200,000 ) 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 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 December 31, 2015 and 2014 (in thousands): Fair Value Measurements at December 31, 2015 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 2,817 $ 2,817 $ - $ - $ 2,817 Notes receivable, net 398 - - 398 398 Investment in securities 368 - - 368 368 Fair value of warrants 569 - - 569 569 Financial liabilities: Non-recourse debt 12,297 - - 12,315 12,315 Long-term debt 2,068 - - 2,248 2,248 Fair Value Measurements at December 31, 2014 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 6,646 $ 6,646 $ - $ - $ 6,646 Notes receivable, net 1,454 - - 1,454 1,454 Investment in securities 318 - - 318 318 Fair value of warrants 595 - - 595 595 Financial liabilities: Non-recourse debt 19,279 - - 19,287 19,287 Long-term debt 2,068 - - 2,170 2,170 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation : The accompanying balance sheets as of Dece mber 31, 2015 and 2014 , and the related statements of income, changes in members’ capital, and cash flows for the years then ended, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission. Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no significant effect on the reported financial position or results from operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after December 31, 2015 , up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, and adjustments thereto. |
Cash and Cash Equivalents | Cash and cash equivalents: Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less. |
Use of Estimates | Use of Estimates: The preparation of the 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 the 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. |
Accounts Receivable | Accounts receivable: Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and notes receivable which are currently due to the Company. Allowances for doubtful accounts are typically established based on historical charge off and collection experience and the collectability 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. |
Credit Risk | Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating and direct financing lease receivables, notes receivable and accounts receivable. The Company places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Funds’ cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts and notes receivable represent amounts due from lessees or borrowers in various industries, related to equipment on operating and direct financing leases or notes receivable. |
Equipment on Operating Leases and Related Revenue Recognition | Equipment on operating leases and related revenue recognition: Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with ASC 840-20-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360-10-35-43). The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized. Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 84 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances . |
Direct Financing Leases and Related Revenue Recognition | Direct financing leases and related revenue recognition: Income from direct financing lease transactions is reported using the financing method of accounting, in which the Company’s investment in the leased property is reported as a receivable from the lessee to be recovered through future rentals. The interest income portion of each rental payment is calculated so as to generate a constant rate of return on the net receivable outstanding. Allowances for losses on direct financing leases are typically established based on historical charge-off and collection experience and the collectability of specifically identified lessees and billed and unbilled receivables. Direct financing leases are charged off to the allowance as they are deemed uncollectible. Direct financing leases are generally placed in a non-accrual status (i.e., no revenue is recognized) and deemed impaired when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of all direct finance lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related direct financing leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, all payments received are applied only against outstanding principal balances. |
Notes Receivable, Unearned Interest Income and Related Revenue Recognition | Notes receivable, unearned interest income and related revenue recognition: The Company records all future payments of principal and interest on notes as notes receivable, which are then offset by the amount of any related unearned interest income. For financial statement purposes, the Company reports only the net amount of principal due on the balance sheet. The unearned interest is recognized over the term of the note and the income portion of each note payment is calculated so as to generate a constant rate of return on the net balance outstanding. Any fees or costs related to notes receivable are recorded as part of the net investment in notes receivable and amortized over the term of the loan. Allowances for losses on notes receivable are typically established based on historical charge off and collection experience and the collectability of specifically identified borrowers and billed and unbilled receivables. Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. If it is determined that a loan is impaired with regard to scheduled payments, the Company will perform an analysis of the note to determine if an impairment valuation reserve is necessary. This analysis considers the estimated cash flows from the note, or the collateral value of the property underlying the note when note repayment is collateral dependent. Any required valuation reserve is charged to earnings when determined; and notes are charged off to the allowance as they are deemed uncollectible. Notes receivable are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of companies with note payments outstanding less than 90 days. Based upon management’s judgment, the related notes may be placed on non-accrual status. Notes placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid receivable is probable. Until such time, all payments received are applied only against outstanding principal balances. |
Initial Direct Costs | Initial direct costs: The Company capitalizes initial direct costs (“IDC”) associated with the origination and funding of lease assets and investments in notes receivable. IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease and loan originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease (or note by note) basis based on actual lease term using a straight-line method for operating leases and the effective interest rate method for direct financing leases and notes receivable. Upon disposal of the underlying lease assets and notes receivable, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases or notes receivable that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense. |
Acquisition Expense | Acquisition expense: Acquisition expense represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses and miscellaneous expenses related to the selection and acquisition of equipment which are reimbursable to the Managing Member under the terms of the Operating Agreement. As the costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred. |
Asset Valuation | Asset valuation: Recorded values of the Company’s lease asset portfolio are periodically reviewed for impairment. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the market place are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. |
Segment Reporting | Segment reporting: The Company is 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 Company’s principal decision makers are the Managing Member’s Chief Executive Officer and its Chief Financial Officer and Chief Operating Officer. The Company believes that its equipment leasing business operates as one reportable segment because: a) the Company measures profit and loss at the equipment portfolio level as a whole; b) the principal decision makers do not review information based on any operating segment other than the equipment leasing transaction portfolio; c) the Company does not maintain discrete financial information on any specific segment other than its equipment financing operations; d) the Company has not chosen to organize its business around different products and services other than equipment lease financing; and e) the Company has not chosen to organize its business around geographic areas. The primary geographic region in which the Company s eeks leasing opportunities is North America. For the years ended December 31, 2015 and 2014, and as of December 31, 2015 and 2014, all of the Company’s current 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 $3 68 thousand and $ 318 thousand of purchased securities at December 31, 2015 and 201 4 , respectively. Based upon the Company’s review of its portfolio, no fair value adjustment was deemed necessary for 2015 and 201 4 . There were also no sales or disposition of securities in 201 5 and 201 4 . 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. The Company recorded unrealized losses of $ 26 thousand and $189 thousand on fair valuation of its warrants during 201 5 and 201 4 , res pectively. The unrealized losses recorded during 2015 reduced the estimated fair value of the Company’s portfolio of warrants to $ 5 6 9 thousand at December 31, 2015 from $595 thousand at December 31, 2014. The Company also realized $1 37 thousand and $79 thousand of gains from the net exercise of warrants during 201 5 and 201 4 , respectively. |
Unearned Operating Lease Income | Unearned operating lease income: The Company records prepayments on operating leases as a liability under the caption of unearned operating lease income. The liability is recorded when prepayments are received and recognized as operating lease revenue over the period to which the prepayments relate using a straight-line method. |
Income Taxes | Income Taxes: The Company is treated as a partnership for federal income tax purposes. Pursuant to the provisions of Section 701 of the Internal Revenue Code, a partnership is not subject to federal income taxes. Accordingly, the Company has provided current franchise income taxes for only those states which levy income taxes on partnerships. For the years ended December 31, 2015 and 2014, the related provision for state income taxes was approximately $ 90 thousand and $25 thousand, respectively. The Company does not have any entity level uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions and is generally subject to examination by U.S. federal (or state and local) income tax authorities for three years from the filing of a tax return. The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2015 and 2014 as follows (in thousands) : 2015 2014 Financial statement basis of net assets $ 27,722 $ 35,500 Tax basis of net assets (unaudited) 27,413 33,823 Difference $ 309 $ 1,677 The primary differences between the tax bases of net assets and the amounts recorded in the financial statements are the result of differences in accounting for syndication costs and differences between the depreciation methods used in the financial statements and the Company’s tax returns. The following reconciles the net income reported in these financial statements to the income reported on the Company’s federal tax return (unaudited) for the years ended December 31, 2015 and 2014 (in thousands): 2015 2014 Net income per financial statements $ 439 $ 774 Tax adjustments (unaudited): Adjustment to depreciation expense 320 (418) Provision for losses and doubtful accounts 4 (10) Adjustments to revenues (48) 704 Adjustments to gain on sales of assets 669 2,173 Other 391 (283) Income per federal tax return (unaudited) $ 1,775 $ 2,940 |
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 year. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts from Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company evaluated the impact of the new standard on its financial statements and has determined that such impact is virtually non-existent as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues. In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements — Going Concern (subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU-2014-15”). The new standard provides guidance relative to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Management does not expect the adoption of ASU 2014-15 to have a material impact on the Company’s financial statements or related disclosures . |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Differences Between Book Value and Tax Basis of Net Assets | The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2015 and 2014 as follows (in thousands) : 2015 2014 Financial statement basis of net assets $ 27,722 $ 35,500 Tax basis of net assets (unaudited) 27,413 33,823 Difference $ 309 $ 1,677 |
Reconciliation of Net Income (Loss) Reported in Financial Statements and Federal Tax Return | The following reconciles the net income reported in these financial statements to the income reported on the Company’s federal tax return (unaudited) for the years ended December 31, 2015 and 2014 (in thousands): 2015 2014 Net income per financial statements $ 439 $ 774 Tax adjustments (unaudited): Adjustment to depreciation expense 320 (418) Provision for losses and doubtful accounts 4 (10) Adjustments to revenues (48) 704 Adjustments to gain on sales of assets 669 2,173 Other 391 (283) Income per federal tax return (unaudited) $ 1,775 $ 2,940 |
Concentration of Credit Risk 24
Concentration of Credit Risk and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Concentration of Credit Risk and Major Customers [Abstract] | |
Schedule of Equipment Leased | As of December 31, 201 5 and 201 4 , there were concentrations (greater than or equal to 10% as a percentage of total equipment cost) of equipment leased to lessees and/or financed for borrowers in certain industries as follows: Percentage of Total Equipment Cost Industry 2015 2014 Natural gas 29% 26% Manufacturing 25% 30% Wholesale, nondurable goods 13% 12% |
Schedule of Major Customers Credit Risk Concentration | During 201 5 and 201 4 , certain lessees and/or financial borrowers generated significant portions (defined as greater than or equal to 10%) of the Company’s total leasing and lending revenues, excluding gains or losses on disposition of assets, as follows: Percentage of Total Leasing and Lending Revenues Lessee Type of Equipment 2015 2014 Halliburton Overseas Limited Marine vessel 22% 18% Cummins Materials handling 11% 13% |
Notes Receivable, Net (Tables)
Notes Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Receivable [Abstract] | |
Minimum Future Payments Receivable | As of December 31, 2015 , the minimum future payments receivable are as follows (in thousands): Year ending December 31, 2016 531 531 Less: portion representing unearned interest income (70) 461 Less: allowance for credit losses (63) Notes receivable, net $ 398 |
Initial Direct Costs, Amortization Expense Related to Notes Receivable and Company's Operating and Direct Finance Leases | IDC amortization expense related to notes receivable and the Company’s operating and direct finance leases for the years ended December 31 , 2015 and 2014 are as follows (in thousands): 2015 2014 IDC amortization - notes receivable $ 3 $ 12 IDC amortization - lease assets 64 98 Total $ 67 $ 110 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Allowance for Credit Losses [Abstract] | |
Activity in Allowance for Doubtful Accounts | The Company’s allowance for credit losses are as follows (in thousands): Accounts Receivable Allowance for Doubtful Accounts Valuation Adjustments on Financing Receivables Total Allowance for Credit Losses Notes Receivable Finance Leases Operating Leases Notes Receivable Finance Leases Balance December 31, 2013 $ - $ - $ 15 $ - $ - $ 15 Reversal of provision for credit losses - - (10) - - (10) Balance December 31, 2014 - - 5 - - 5 Provision for credit losses - - 5 63 - 68 Balance December 31, 2015 $ - $ - $ 10 $ 63 $ - $ 73 |
Recorded Investment in Financing Receivables | As of December 31, 2015 and 2014, the Company’s allowance for credit losses (related solely to financing receivables) and its recorded investment in financing receivables were as follows (in thousands): December 31, 2015 Notes Receivable Finance Leases Total Allowance for credit losses: Ending balance $ 63 $ - $ 63 Ending balance: individually evaluated for impairment $ 63 $ - $ 63 Ending balance: collectively evaluated for impairment $ - $ - $ - Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - Financing receivables: Ending balance $ 461 $ 62 $ 523 Ending balance: individually evaluated for impairment $ 461 $ 62 $ 523 Ending balance: collectively evaluated for impairment $ - $ - $ - Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - 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 $ 1,454 1 $ 296 $ 1,750 Ending balance: individually evaluated for impairment $ 1,454 $ 296 $ 1,750 Ending balance: collectively evaluated for impairment $ - $ - $ - Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - 1 Includes $3 of unamortized initial direct costs. |
Financing Receivables by Credit Quality Indicator and by Class | At December 31, 2015 and 2014 , the Company’s financing receivables by credit quality indicator and by class of financing receivables are as follows (excludes initial direct costs) (in thousands): Notes Receivable Finance Leases 2015 2014 2015 2014 Pass $ 362 $ 1,149 $ 62 $ 296 Special mention - 302 - - Substandard 99 - - - Doubtful - - - - Total $ 461 $ 1,451 $ 62 $ 296 |
Schedule of Impaired Loans | As of December 31, 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 99 99 63 104 - Total $ 99 $ 99 $ 63 $ 104 $ - |
Net Investment in Financing Receivables by Age | At December 31 , 2015 and 2014, the investment in financing receivables is aged as follows (in thousands): December 31, 2015 31-60 Days Past Due 61-90 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment>90 Days and Accruing Notes receivable $ - $ - $ - $ - $ 461 $ 461 $ - Finance leases - - - - 62 62 - Total $ - $ - $ - $ - $ 523 $ 523 $ - 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 $ - $ - $ - $ - $ 1,451 $ 1,451 $ - Finance leases - - - - 296 296 - Total $ - $ - $ - $ - $ 1,747 $ 1,747 $ - |
Investments in Equipment and 27
Investments in Equipment and Leases, Net (Tables) | 12 Months Ended |
Dec. 31, 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, Improvements/ Dispositions and Impairment Losses Depreciation/ Amortization Expense or Amortization of Leases Balance December 31, 2015 Net investment in operating leases $ 48,600 $ (2,163) $ (8,034) $ 38,403 Net investment in direct financing leases 296 33 (267) 62 Assets held for sale or lease, net 101 507 - 608 Initial direct costs, net of accumulated amortization of $96 at December 31, 2015 and $277 at December 31, 2014 111 - (64) 47 Total $ 49,108 $ (1,623) $ (8,365) $ 39,120 |
Property on Operating Leases | Property on operating leases consists of the following (in thousands): Balance December 31, 2014 Improvements Reclassifications or Dispositions Balance December 31, 2015 Marine vessel $ 19,410 $ - $ - $ 19,410 Transportation, rail 19,079 21 (263) 18,837 Manufacturing 7,858 - (26) 7,832 Transportation 8,028 - (512) 7,516 Materials handling 11,074 - (5,421) 5,653 Construction 5,353 - (2,348) 3,005 Research 2,250 - - 2,250 Agriculture 851 - - 851 Air support equipment 120 - - 120 Office automation 27 - (27) - Other 119 - - 119 74,169 21 (8,597) 65,593 Less accumulated depreciation (25,569) (8,034) 6,413 (27,190) Total $ 48,600 $ (8,013) $ (2,184) $ 38,403 |
Components of Company's Investment in Direct Financing Leases | The components of the Company’s investment in direct financing leases as of December 31, 2015 and 2014 are as follows (in thousands): 2015 2014 Total minimum lease payments receivable $ 94 $ 306 Estimated residual values of leased equipment (unguaranteed) 4 11 Investment in direct financing leases 98 317 Less unearned income (36) (21) Net investment in direct financing leases $ 62 $ 296 |
Future Minimum Lease Payments Receivable | At December 31 , 2015 , the aggregate amounts of future minimum lease payments receivable are as follows (in thousands): Operating Leases Direct Financing Leases Total Year ending December 31, 2016 $ 6,818 $ 46 $ 6,864 2017 5,562 26 5,588 2018 4,142 22 4,164 2019 1,004 - 1,004 $ 17,526 $ 94 $ 17,620 |
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 December 31, 201 5 and 201 4 , 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 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement | The Managing Member and/or affiliates earned fees and billed for reimbursements, pursuant to the Operating Agreement, during the years ended December 31, 201 5 and 201 4 as follows (in thousands): 2015 2014 Administrative costs reimbursed to Managing Member and/or affiliates $ 1,190 $ 1,535 Asset management fees to Managing Member 573 733 Acquisition and initial direct costs paid to Managing Member - 63 $ 1,763 $ 2,331 |
Non-Recourse Debt (Tables)
Non-Recourse Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Non-Recourse Debt [Abstract] | |
Future Minimum Payments of Non-Recourse Debt | Future minimum payments of non-recourse debt are as follows (in thousands): Principal Interest Total Year ending December 31, 2016 $ 4,136 $ 270 $ 4,406 2017 3,932 166 4,098 2018 3,233 71 3,304 2019 996 8 1,004 $ 12,297 $ 515 $ 12,812 |
Borrowing Facilities (Tables)
Borrowing Facilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Borrowing Facilities [Abstract] | |
Borrowings under Credit Facility | As of December 31, 2015 and 2014, borrowings under the Credit Facility were as follows (in thousands): 2015 2014 Total available under the financing arrangement $ 75,000 $ 75,000 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 (1,090) (1,150) Total remaining available under the venture, acquisition and warehouse facilities $ 73,910 $ 73,850 |
Members' Capital (Tables)
Members' Capital (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Members' Capital [Abstract] | |
Distributions to Other Members | Distributions to the Other Members for the years ended December 31, 2015 and 2014 were as follows (in thousands except Units and per Unit data): 2015 2014 Distributions declared $ 7,532 $ 7,548 Weighted average number of Units outstanding 8,376,885 8,386,015 Weighted average distributions per Unit $ 0.90 $ 0.90 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Reconciliation of Level 3 Assets | The following table reconciles the beginning and ending balances of the Company’s Level 3 recurring assets (in thousands): Level 3 Assets Balance at December 31, 2014 $ 595 Unrealized loss on warrants, net recorded during the year (26) Balance at December 31, 2015 $ 569 |
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 December 31, 2015 (in thousands): December 31, 2015 Level 1 Estimated Fair Value Level 2 Estimated Fair Value Level 3 Estimated Fair Value Assets measured at fair value on a non-recurring basis: Impaired notes receivable, net $ 36 $ - $ - $ 36 Impaired off-lease equipment 200 - - 200 |
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 December 31, 2015 and 2014: December 31, 2015 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.35 - $1,000.00 Exercise price $0.36 - $1,000.00 Time to maturity (in years) 0.62 - 7.0 1 Risk-free interest rate 0.52% - 2. 09 % Annualized volatility 13.96% - 100.00% Notes Receivable Non-recurring Market Approach Third Party Agents' estimate of the value of collateral $6,530 - $17,051 Condition of collateral (equipment) Poor to Average Lease Equipment Non-recurring Market Approach Third Party Agents' estimate of the value of collateral $200,000 (total of $200,000 ) 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 December 31, 2015 and 2014 (in thousands): Fair Value Measurements at December 31, 2015 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 2,817 $ 2,817 $ - $ - $ 2,817 Notes receivable, net 398 - - 398 398 Investment in securities 368 - - 368 368 Fair value of warrants 569 - - 569 569 Financial liabilities: Non-recourse debt 12,297 - - 12,315 12,315 Long-term debt 2,068 - - 2,248 2,248 Fair Value Measurements at December 31, 2014 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 6,646 $ 6,646 $ - $ - $ 6,646 Notes receivable, net 1,454 - - 1,454 1,454 Investment in securities 318 - - 318 318 Fair value of warrants 595 - - 595 595 Financial liabilities: Non-recourse debt 19,279 - - 19,287 19,287 Long-term debt 2,068 - - 2,170 2,170 |
Organization and Limited Liab33
Organization and Limited Liability Company Matters (Narrative) (Details) - USD ($) | Dec. 02, 2009 | Oct. 08, 2009 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | 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 | |||||
Units issued | 8,367,055 | 8,367,055 | 8,386,015 | ||||
Units outstanding | 8,367,055 | 8,367,055 | 8,386,015 | ||||
Reinvestment period | 6 years | ||||||
Minimum [Member] | |||||||
Amount of aggregate subscriptions for Pennsylvania subscriptions to be released to the Fund | $ 7,500,000 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | |
Fair value of warrants | $ 569 | $ 595 |
Number of operating segments | segment | 1 | |
Number of reportable segments | segment | 1 | |
Investment in securities | $ 368 | 318 |
Unrealized (loss) gain on warrants, net recorded during the year | (26) | (189) |
Sales or dispositions of securities | 0 | 0 |
Gain on exercise of warrants | 137 | 79 |
Provision for franchise fees and state taxes | $ 90 | $ 25 |
Period subject to income tax examination | 3 years | |
Minimum [Member] | ||
Required assets value of financial institutions for cash deposits | $ 10,000,000 | |
Operating leases, initial terms | 36 months | |
Operating leases, period for non-accrual status | 90 days | |
Direct financing leases, period for non accrual status | 90 days | |
Note receivable, period for non accrual status | 90 days | |
Maximum [Member] | ||
U.S. Treasury instruments maturity period | 90 days | |
Cash deposits, insured amount | $ 250 | |
Operating leases, initial terms | 84 months | |
Equipment and lessee period of review for impairment | 90 days | |
Direct financing leases, period of review for impairment | 90 days | |
Note receivable, period of review for impairment | 90 days |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Schedule of Differences Between Book Value and Tax Basis of Net Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Summary of Significant Accounting Policies [Abstract] | |||
Financial statement basis of net assets | $ 27,722 | $ 35,500 | $ 42,886 |
Tax basis of net assets (unaudited) | 27,413 | 33,823 | |
Difference | $ 309 | $ 1,677 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Reconciliation of Net Income (Loss) Reported in Financial Statements and Federal Tax Return) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | ||
Net income per financial statements | $ 439 | $ 774 |
Adjustment to depreciation expense | 320 | (418) |
Provision for losses and doubtful accounts | 4 | (10) |
Adjustments to revenues | (48) | 704 |
Adjustments to gain on sales of assets | 669 | 2,173 |
Other | 391 | (283) |
Income per federal tax return (unaudited) | $ 1,775 | $ 2,940 |
Concentration of Credit Risk 37
Concentration of Credit Risk and Major Customers (Schedule of Leasing and Lending Revenues) (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Natural Gas [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 29.00% | 26.00% |
Manufacturing [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 25.00% | 30.00% |
Wholesale, Nondurable Goods [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 13.00% | 12.00% |
Materials Handling [Member] | Cummins [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 11.00% | 13.00% |
Marine Vessel [Member] | Halliburton Overseas Limited [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 22.00% | 18.00% |
Notes Receivable, Net (Narrativ
Notes Receivable, Net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Fair value adjustments which reduced the cost basis of impaired note | $ 63 | |
Fair value of notes receivable | 398 | $ 1,454 |
Principal payments received on notes receivable | 820 | 1,852 |
Principal balance | 99 | |
Net investment balance | $ 99 | |
Minimum [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Terms of the notes receivable | 36 months | |
Notes receivable, interest rate | 12.35% | |
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 | Jan. 1, 2016 | |
Notes Receivable, Fully Paid [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Notes receivable, interest rate | 12.00% | |
Principal payments received on notes receivable | $ 199 | |
Gain on collection of notes receivable | 88 | |
Interest not recorded relative to the original terms of the non-accrual notes | $ 18 | |
Notes receivable, composite interest rate | 18.00% | |
Notes Receivable, Fully Paid [Member] | Note Receivable One [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Net investment balance | 85 | |
Notes Receivable, Fully Paid [Member] | Note Receivable Two [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Net investment balance | 105 | |
Notes Receivable, Still on Non-Accrual Status [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Notes receivable, interest rate | 11.73% | |
Notes maturity period | Jul. 1, 2016 | |
Fair value adjustments which reduced the cost basis of impaired note | $ 63 | 0 |
Fair value of notes receivable | $ 36 | |
Notes receivable, composite interest rate | 18.00% | |
Net investment balance | $ 99 | $ 111 |
Notes receivable in non-accrual status, unrecorded interest | $ 8 |
Notes Receivable, Net (Minimum
Notes Receivable, Net (Minimum Future Payments Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Less: portion representing unearned interest income | $ (70) | $ (209) | |
Less: allowance for credit losses | (73) | (5) | $ (15) |
Notes receivable, net | 398 | 1,454 | |
Notes Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year ending December 31, 2016 | 531 | ||
Financing receivable, gross | 531 | ||
Less: portion representing unearned interest income | (70) | ||
Notes receivable | 461 | 1,451 | |
Unamortized initial direct costs | 3 | ||
Less: allowance for credit losses | (63) | $ 0 | |
Notes receivable, net | $ 398 |
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 | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortization of initial direct costs | $ 67 | $ 110 |
Notes Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortization of initial direct costs | 3 | 12 |
Lease Assets [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortization of initial direct costs | $ 64 | $ 98 |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Impaired loans | $ 99 |
Minimum [Member] | |
Operating leases, period for non-accrual status | 90 days |
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 | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | $ 5 | $ 15 |
Provision for (reversal of) credit losses | 68 | (10) |
Ending Balance | 73 | 5 |
Notes Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | 0 | |
Ending Balance | $ 63 | $ 0 |
Allowance For Doubtful Accounts [Member] | Notes Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | ||
Provision for (reversal of) credit losses | ||
Ending Balance | ||
Allowance For Doubtful Accounts [Member] | Direct Financing Leases [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | ||
Provision for (reversal of) credit losses | ||
Ending Balance | ||
Allowance For Doubtful Accounts [Member] | Operating Leases [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | $ 5 | $ 15 |
Provision for (reversal of) credit losses | 5 | (10) |
Ending Balance | 10 | $ 5 |
Valuation Adjustments on Financing Receivables [Member] | Notes Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Provision for (reversal of) credit losses | 63 | |
Ending Balance | $ 63 | |
Valuation Adjustments on Financing Receivables [Member] | Direct Financing Leases [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | ||
Provision for (reversal of) credit losses | ||
Ending Balance |
Allowance for Credit Losses (Re
Allowance for Credit Losses (Recorded Investment in Financing Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowances for credit losses: | |||
Ending balance | $ 63 | ||
Ending balance: individually evaluated for impairment | $ 63 | ||
Ending balance: collectively evaluated for impairment | |||
Financing Receivables: | |||
Ending balance | $ 523 | $ 1,750 | |
Ending balance: individually evaluated for impairment | $ 523 | $ 1,750 | |
Ending balance: collectively evaluated for impairment | |||
Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Allowances for credit losses: | |||
Ending balance | |||
Financing Receivables: | |||
Ending balance | |||
Finance Leases [Member] | |||
Allowances for credit losses: | |||
Ending balance | |||
Ending balance: individually evaluated for impairment | |||
Ending balance: collectively evaluated for impairment | |||
Financing Receivables: | |||
Ending balance | $ 62 | $ 296 | |
Ending balance: individually evaluated for impairment | $ 62 | $ 296 | |
Ending balance: collectively evaluated for impairment | |||
Finance Leases [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Allowances for credit losses: | |||
Ending balance | |||
Financing Receivables: | |||
Ending balance | |||
Notes Receivable [Member] | |||
Allowances for credit losses: | |||
Ending balance | $ 63 | ||
Ending balance: individually evaluated for impairment | $ 63 | ||
Ending balance: collectively evaluated for impairment | |||
Financing Receivables: | |||
Ending balance | $ 461 | $ 1,454 | [1] |
Ending balance: individually evaluated for impairment | $ 461 | $ 1,454 | |
Ending balance: collectively evaluated for impairment | |||
Notes receivable unamortized initial direct cost | $ 3 | ||
Notes Receivable [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Allowances for credit losses: | |||
Ending balance | |||
Financing Receivables: | |||
Ending balance | |||
[1] | 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 | Dec. 31, 2015 | Dec. 31, 2014 |
Finance Leases [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Finance Leases | $ 62 | $ 296 |
Finance Leases [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Finance Leases | 62 | 296 |
Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes Receivable | 461 | 1,451 |
Notes Receivable [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes Receivable | 362 | 1,149 |
Notes Receivable [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes Receivable | $ 302 | |
Notes Receivable [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes Receivable | $ 99 |
Allowance for Credit Losses (Sc
Allowance for Credit Losses (Schedule of Impaired Loans) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
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 | $ 99 |
Notes receivable, With an allowance recorded, Unpaid Principal Balance | 99 |
Fair value adjustments which reduced the cost basis of impaired note | 63 |
Notes receivable, With an allowance recorded, Average recorded investment | $ 104 |
Notes receivable, With an allowance recorded, Interest income recognized | |
Recorded investment, Total | $ 99 |
Unpaid principal balance, Total | 99 |
Average recorded investment, Total | $ 104 |
Interest income recognized, Total |
Allowance for Credit Losses (Ne
Allowance for Credit Losses (Net Investment in Financing Receivables by Age) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Current | $ 523 | $ 1,747 |
Total financing receivables | $ 523 | $ 1,747 |
Recorded Investment > 90 Days and Accruing | ||
31 To 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
61 To 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Current | $ 461 | $ 1,451 |
Total financing receivables | $ 461 | $ 1,451 |
Recorded Investment > 90 Days and Accruing | ||
Notes Receivable [Member] | 31 To 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Notes Receivable [Member] | 61 To 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Notes Receivable [Member] | Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Finance Leases [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Current | $ 62 | $ 296 |
Total financing receivables | $ 62 | $ 296 |
Recorded Investment > 90 Days and Accruing | ||
Finance Leases [Member] | 31 To 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Finance Leases [Member] | 61 To 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Finance Leases [Member] | Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due |
Investments in Equipment and 47
Investments in Equipment and Leases, Net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property Subject to or Available for Operating Lease [Line Items] | ||
Depreciation of operating lease assets | $ 8,034 | $ 10,321 |
Average estimated residual value of assets on operating leases | 37.00% | 39.00% |
Impairment losses on equipment | $ 49 | $ 67 |
Amortization of initial direct costs | 67 | 110 |
Lease Assets [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Amortization of initial direct costs | $ 64 | $ 98 |
Investments in Equipment and 48
Investments in Equipment and Leases, Net (Investment in Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Leases Disclosure [Line Items] | ||
Balance December 31, 2014 | $ 49,108 | |
Reclassifications, Additions/ Dispositions and Impairment Losses | (1,623) | |
Depreciation/ Amortization Expense or Amortization of Leases | (8,365) | |
Balance December 31, 2015 | 39,120 | |
Initial direct costs, accumulated amortization | 96 | $ 277 |
Operating Leases [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2014 | 48,600 | |
Reclassifications, Additions/ Dispositions and Impairment Losses | (2,163) | |
Depreciation/ Amortization Expense or Amortization of Leases | (8,034) | |
Balance December 31, 2015 | 38,403 | |
Direct Financing Leases [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2014 | 296 | |
Reclassifications, Additions/ Dispositions and Impairment Losses | 33 | |
Depreciation/ Amortization Expense or Amortization of Leases | (267) | |
Balance December 31, 2015 | 62 | |
Assets Held for Sale or Lease, Net [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2014 | 101 | |
Reclassifications, Additions/ Dispositions and Impairment Losses | 507 | |
Balance December 31, 2015 | 608 | |
Initial Direct Cost [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2014 | 111 | |
Depreciation/ Amortization Expense or Amortization of Leases | (64) | |
Balance December 31, 2015 | $ 47 |
Investments in Equipment and 49
Investments in Equipment and Leases, Net (Property on Operating Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 65,593 | $ 74,169 |
Less accumulated depreciation | (27,190) | (25,569) |
Property on operating leases, net | 38,403 | 48,600 |
Improvements, gross | 21 | |
Improvements, less accumulated depreciation | (8,034) | |
Improvements, net | (8,013) | |
Reclassifications or dispositions, gross | (8,597) | |
Reclassifications or dispositions, less accumulated depreciation | 6,413 | |
Reclassifications or dispositions, net | (2,184) | |
Marine Vessel [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 19,410 | 19,410 |
Reclassifications or dispositions, gross | ||
Transportation, Rail [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 18,837 | 19,079 |
Improvements, gross | 21 | |
Reclassifications or dispositions, gross | (263) | |
Manufacturing [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 7,832 | 7,858 |
Reclassifications or dispositions, gross | (26) | |
Transportation [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 7,516 | 8,028 |
Reclassifications or dispositions, gross | (512) | |
Materials Handling [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 5,653 | 11,074 |
Reclassifications or dispositions, gross | (5,421) | |
Construction [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 3,005 | 5,353 |
Reclassifications or dispositions, gross | (2,348) | |
Research [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 2,250 | 2,250 |
Reclassifications or dispositions, gross | ||
Agriculture [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 851 | 851 |
Reclassifications or dispositions, gross | ||
Air Support Equipment [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 120 | 120 |
Reclassifications or dispositions, gross | ||
Office Automation [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 27 | |
Reclassifications or dispositions, gross | $ (27) | |
Other [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 119 | $ 119 |
Reclassifications or dispositions, gross |
Investments in Equipment and 50
Investments in Equipment and Leases, Net (Components of Company's Investment in Direct Financing Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments in Equipment and Leases, Net [Abstract] | ||
Total minimum lease payments receivable | $ 94 | $ 306 |
Estimated residual values of leased equipment (unguaranteed) | 4 | 11 |
Investment in direct financing leases | 98 | 317 |
Less unearned income | (36) | (21) |
Net investment in direct financing leases | $ 62 | $ 296 |
Investments in Equipment and 51
Investments in Equipment and Leases, Net (Future Minimum Lease Payments Receivable) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases | |
Year ending December 31, 2016 | $ 6,818 |
2,017 | 5,562 |
2,018 | 4,142 |
2,019 | 1,004 |
Operating leases, future minimum payments receivable, total | 17,526 |
Direct Financing Leases | |
Year ending December 31, 2016 | 46 |
2,017 | 26 |
2,018 | 22 |
Direct financing leases, future minimum payments receivable, total | 94 |
Total | |
Year ending December 31, 2016 | 6,864 |
2,017 | 5,588 |
2,018 | 4,164 |
2,019 | 1,004 |
Operating and direct financing leases, future minimum payments receivable, total | $ 17,620 |
Investments in Equipment and 52
Investments in Equipment and Leases, Net (Schedule of Useful Lives of Lease Assets) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum [Member] | Transportation, Rail [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 35 years |
Minimum [Member] | 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 |
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 |
Related Party Transactions (Aff
Related Party Transactions (Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transactions [Abstract] | ||
Administrative costs reimbursed to Managing Member and/or affiliates | $ 1,190 | $ 1,535 |
Asset management fees to Managing Member | 573 | 733 |
Acquisition and initial direct costs paid to Managing Member | 63 | |
Related party transaction, total | $ 1,763 | $ 2,331 |
Non-Recourse Debt (Narrative) (
Non-Recourse Debt (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Schedule of Capitalization, Long-term Debt [Line Items] | |
Gross operating lease rentals and future payments on direct financing leases | $ 12.8 |
Carrying value of pledged assets | $ 23.8 |
Minimum [Member] | |
Schedule of Capitalization, Long-term Debt [Line Items] | |
Fixed Interest rate on note | 1.53% |
Note maturity year | 2,016 |
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 | Dec. 31, 2015USD ($) |
Principal | |
Year ending December 31, 2016 | $ 4,136 |
2,017 | 3,932 |
2,018 | 3,233 |
2,019 | 996 |
Long-term Debt, Total | 12,297 |
Interest | |
Year ending December 31, 2016 | 270 |
2,017 | 166 |
2,018 | 71 |
2,019 | 8 |
Long Term Debt Interest, Total | 515 |
Total | |
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 | $ 12,812 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |
Long-term debt | $ 12,297 |
Long-term debt interest | 515 |
Principal and interest, total | 12,812 |
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 | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Apr. 30, 2015USD ($) | |
Line of Credit Facility [Line Items] | ||||||
Maximum amount of Credit Facility | $ 75,000 | $ 41,100 | $ 75,000 | $ 75,000 | $ 60,000 | $ 56,000 |
Credit facility, expiration date | Jun. 30, 2017 | Sep. 1, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Tangible net worth required under the Credit Facility | $ 10,000 | |||||
Interest coverage ratio | 2 | |||||
Maximum [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Leverage ratio | 1.25 | |||||
Covenant Requirement [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Leverage ratio | 0.52 | |||||
Interest coverage ratio | 21.53 | |||||
Net worth | $ 27,700 | |||||
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 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Apr. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Borrowing Facilities [Abstract] | ||||||
Total available under the financing arrangement | $ 75,000 | $ 75,000 | $ 41,100 | $ 56,000 | $ 75,000 | $ 60,000 |
Amounts borrowed by affiliated partnerships and Limited Liability Companies under the venture, acquisition and warehouse facilities | (1,090) | (1,150) | ||||
Total remaining available under the venture, acquisition and warehouse facilities | $ 73,910 | $ 73,850 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Commitments [Abstract] | |
Commitments to purchase lease assets | $ 0 |
Members' Capital (Narrative) (D
Members' Capital (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Members Capital Account [Line Items] | |||
Members capital account, units issued | 8,367,055 | 8,386,015 | |
Members capital account, units outstanding | 8,367,055 | 8,386,015 | |
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 outstanding | 8,367,055 | 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 | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Members' Capital [Abstract] | ||
Distributions declared | $ 7,532 | $ 7,548 |
Weighted average number of Units outstanding | 8,376,885 | 8,386,015 |
Weighted average distributions per Unit | $ 0.90 | $ 0.90 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Measurements [Abstract] | ||
Fair value adjustments which reduced the cost basis of impaired note | $ 63 | |
Fair value of warrants | 569 | $ 595 |
Impairment losses on equipment | $ 49 | $ 67 |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Level 3 Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized loss on warrants, net recorded during the period | $ (26) | $ (189) |
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 | (26) | |
Balance at December 31, 2015 | $ 569 | $ 595 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurement of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired notes receivable, net | $ 36 |
Impaired off-lease equipment | 200 |
Level 3 Estimated Fair Value [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired notes receivable, net | 36 |
Impaired off-lease equipment | $ 200 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Valuation Techniques and Significant Unobservable Inputs Used) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Nonrecurring [Member] | Lease Equipment [Member] | Market Approach [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair value inputs, third party agents' pricing quotes per equipment | $ 200,000 | |
Fair value inputs, third party agents' pricing quotes, total | $ 200,000 | |
Minimum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Stock price | $ 0.35 | $ 0.05 |
Exercise price | $ 0.36 | $ 0.05 |
Time to maturity (in years) | 7 months 13 days | 1 year 7 months 13 days |
Risk-free interest rate | 0.52% | 0.50% |
Annualized volatility | 13.96% | 15.88% |
Minimum [Member] | Nonrecurring [Member] | Notes Receivable [Member] | Market Approach [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair value inputs, third party agents' pricing quotes per equipment | $ 6,530 | |
Maximum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [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 days | 8 years 1 month 2 days |
Risk-free interest rate | 2.09% | 2.04% |
Annualized volatility | 100.00% | 100.00% |
Maximum [Member] | Nonrecurring [Member] | Notes Receivable [Member] | Market Approach [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair value inputs, third party agents' pricing quotes per equipment | $ 17,051 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Cash and cash equivalents | $ 2,817 | $ 6,646 |
Notes receivable, net | 398 | 1,454 |
Investment in securities | 368 | 318 |
Fair value of warrants | 569 | 595 |
Financial liabilities: | ||
Non-recourse debt | 12,315 | 19,287 |
Long-term debt | 2,248 | 2,170 |
Level 1 Estimated Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | $ 2,817 | $ 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 | $ 398 | $ 1,454 |
Investment in securities | 368 | 318 |
Fair value of warrants | 569 | 595 |
Financial liabilities: | ||
Non-recourse debt | 12,315 | 19,287 |
Long-term debt | 2,248 | 2,170 |
Carrying Amount [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 2,817 | 6,646 |
Notes receivable, net | 398 | 1,454 |
Investment in securities | 368 | 318 |
Fair value of warrants | 569 | 595 |
Financial liabilities: | ||
Non-recourse debt | 12,297 | 19,279 |
Long-term debt | $ 2,068 | $ 2,068 |