Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | ATEL 14, LLC | |
Entity Central Index Key | 1,463,389 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Units Outstanding | 8,246,919 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 720 | $ 1,266 |
Due from affiliates | 160 | |
Accounts receivable, net | 105 | 86 |
Notes receivable, net | 87 | 125 |
Investment in securities | 118 | 121 |
Warrants, fair value | 252 | 232 |
Investments in equipment and leases, net | 20,542 | 23,291 |
Prepaid expenses and other assets | 108 | 85 |
Total assets | 22,092 | 25,206 |
Accounts payable and accrued liabilities: | ||
Managing Member | 3 | 66 |
Affiliates | 168 | 215 |
Accrued distributions to Other Members | 797 | |
Other | 591 | 726 |
Non-recourse debt | 1,777 | 4,229 |
Senior long-term debt | 2,068 | 2,068 |
Credit facility | 1,200 | 1,950 |
Unearned operating lease income | 85 | 106 |
Unearned interest income | 87 | 125 |
Total liabilities | 5,979 | 10,282 |
Commitments and contingencies | ||
Members' capital: | ||
Managing Member | ||
Other Members | 16,113 | 14,924 |
Total Members' capital | 16,113 | 14,924 |
Total liabilities and Members' capital | $ 22,092 | $ 25,206 |
Statements of Income
Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Leasing and lending activities: | ||||
Operating leases | $ 1,560 | $ 1,777 | $ 4,818 | $ 5,522 |
Direct financing leases | 1 | 3 | 4 | 10 |
Interest on notes receivable | 17 | 37 | ||
Gain on sales of lease assets and early termination of notes receivable | 39 | 182 | 188 | 378 |
Unrealized gain (loss) on fair value adjustment for warrants | 10 | (1) | 20 | (2) |
Unrealized (loss) gain on fair value adjustment for marketable securities | (8) | 12 | ||
Other | 8 | 2 | 152 | 77 |
Total revenues | 1,627 | 1,963 | 5,231 | 5,985 |
Expenses: | ||||
Depreciation of operating lease assets | 764 | 1,020 | 2,428 | 3,184 |
Asset management fees to Managing Member | 67 | 94 | 215 | 273 |
Cost reimbursements to Managing Member and/or affiliates | 140 | 178 | 561 | 587 |
Reversal of provision for credit losses | (1) | (11) | (14) | (61) |
Impairment losses on investment in securities | 17 | |||
Impairment losses on equipment | 21 | |||
Amortization of initial direct costs | 4 | 6 | 13 | |
Interest expense | 50 | 58 | 176 | 193 |
Professional fees | 21 | 15 | 118 | 141 |
Outside services | 27 | 23 | 86 | 91 |
Taxes on income and franchise fees | 24 | 56 | 72 | 191 |
Bank charges | 31 | 27 | 92 | 93 |
Railcar maintenance | 25 | 48 | 118 | 278 |
Other | 59 | 58 | 141 | 152 |
Total expenses | 1,207 | 1,570 | 4,016 | 5,156 |
Net income | 420 | 393 | 1,215 | 829 |
Net income: | ||||
Managing Member | 150 | 451 | ||
Other Members | 420 | 243 | 1,215 | 378 |
Net income | $ 420 | $ 393 | $ 1,215 | $ 829 |
Net income per Limited Liability Company Unit (Other Members) | $ 0.05 | $ 0.03 | $ 0.15 | $ 0.05 |
Weighted average number of Units outstanding | 8,246,919 | 8,281,477 | 8,249,089 | 8,295,717 |
Statements of Changes in Member
Statements of Changes in Members' Capital - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Beginning Balance | $ 14,924 | $ 22,113 | $ 22,113 | |
Repurchase of Units | (21) | (164) | ||
Distributions to Other Members | (5) | (7,423) | ||
Distributions to Managing Member | (602) | |||
Net (loss) income | $ 420 | $ 1,215 | $ 829 | 1,000 |
Ending Balance (in Units) | 8,246,919 | 8,246,919 | ||
Ending Balance | $ 16,113 | $ 16,113 | $ 14,924 | |
Other Members [Member] | ||||
Beginning Balance (in Units) | 8,257,599 | 8,316,662 | 8,316,662 | |
Beginning Balance | $ 14,924 | $ 22,113 | $ 22,113 | |
Repurchase of Units (in Units) | (10,680) | (59,063) | ||
Repurchase of Units | $ (21) | $ (164) | ||
Distributions to Other Members | (5) | $ (5,566) | (7,423) | |
Net (loss) income | $ 1,215 | $ 398 | ||
Ending Balance (in Units) | 8,246,919 | 8,246,919 | 8,257,599 | |
Ending Balance | $ 16,113 | $ 16,113 | $ 14,924 | |
Managing Member [Member] | ||||
Distributions to Managing Member | (602) | |||
Net (loss) income | $ 602 |
Statements of Changes in Memb_2
Statements of Changes in Members' Capital (Parenthetical) | 12 Months Ended |
Dec. 31, 2017$ / shares | |
Statements of Changes in Members' Capital [Abstract] | |
Distributions to Other Members, per unit | $ 0.90 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Operating activities: | |||||
Net income | $ 420 | $ 393 | $ 1,215 | $ 829 | $ 1,000 |
Adjustment to reconcile net income to cash provided by operating activities: | |||||
Gain on sales of lease assets and early termination of notes receivable | (39) | (182) | (188) | (378) | |
Depreciation of operating lease assets | 764 | 1,020 | 2,428 | 3,184 | |
Amortization of initial direct costs | 4 | 6 | 13 | ||
Reversal of provision for credit losses | (1) | (11) | (14) | (61) | (85) |
Impairment losses on investment in securities | 17 | ||||
Impairment losses on equipment | 21 | ||||
Unrealized (gain) loss on fair value adjustment for warrants | (10) | 1 | (20) | 2 | |
Unrealized loss (gain) on fair value adjustment for marketable securities | 8 | (12) | |||
Changes in operating assets and liabilities: | |||||
Accounts receivable | (34) | (84) | (20) | 313 | |
Prepaid expenses and other assets | 7 | (5) | (23) | (9) | |
Due from Managing Member and affiliates | (160) | (160) | |||
Accounts payable, Managing Member and affiliates | 134 | 25 | (45) | (66) | |
Accounts payable, other | (71) | 84 | (135) | 119 | |
Unearned operating lease income | 6 | (54) | (21) | (38) | |
Net cash provided by operating activities | 1,024 | 1,191 | 3,028 | 3,929 | |
Investing activities: | |||||
Purchase of securities | (2) | ||||
Proceeds from sales of lease assets and early termination of notes receivable | 86 | 528 | 487 | 1,287 | |
Principal payments received on direct financing leases | 5 | 3 | 15 | 9 | |
Principal payments received on notes receivable | 1 | 17 | 16 | 53 | |
Net cash provided by investing activities | 92 | 548 | 516 | 1,349 | |
Financing activities: | |||||
Repayments under non-recourse debt | (777) | (1,010) | (2,452) | (3,036) | |
Repayments under credit facility | (750) | (750) | |||
Repurchase of Units | (52) | (21) | (124) | ||
Net cash used in financing activities | (1,527) | (3,061) | (4,090) | (9,183) | |
Net decrease in cash and cash equivalents | (411) | (1,322) | (546) | (3,905) | |
Cash and cash equivalents at beginning of period | 1,131 | 2,056 | 1,266 | 4,639 | 4,639 |
Cash and cash equivalents at end of period | 720 | 734 | 720 | 734 | 1,266 |
Supplemental disclosures of cash flow information: | |||||
Cash paid during the period for interest | $ 30 | 38 | 116 | 134 | |
Cash paid during the period for taxes | 3 | 55 | 136 | ||
Other Members [Member] | |||||
Operating activities: | |||||
Net income | 1,215 | 398 | |||
Financing activities: | |||||
Distributions to Members | (1,849) | (802) | (5,572) | ||
Schedule of non-cash transactions: | |||||
Distributions payable to Members at period-end | 797 | 797 | |||
Managing Member [Member] | |||||
Operating activities: | |||||
Net income | $ 602 | ||||
Financing activities: | |||||
Distributions to Members | (150) | $ (65) | (451) | ||
Schedule of non-cash transactions: | |||||
Distributions payable to Members at period-end | $ 65 | $ 65 |
Organization and Limited Liabil
Organization and Limited Liability Company Matters | 9 Months Ended |
Sep. 30, 2018 | |
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 member’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. As of September 30 , 2018 , cumulative gross contributions, less rescissions and repurchases (net of distributions paid and allocated syndication costs, as applicable), totaling $83.5 million (inclusive of the $500 initial Member’s capital investment) have been received. As of the same date, 8,246,919 Units were issued and outstanding . The Company is governed by the ATEL 14, LLC amended and restated limited liability company operating agreement dated October 7, 2009 (the “Operating Agreement”). On January 1, 2018, the Company commenced liquidation phase activities pursuant to the guidelines of the operating agreement. Pursuant to the terms of the Operating Agreement, the Managing Member and/or its affiliates receives compensation for services rendered and reimbursements for costs incurred on behalf of the Company (See Note 6). The Company is required to maintain reasonable cash reserves for working capital, the repurchase of Units and contingencies. The repurchase of Units is solely at the discretion of the Managing Member. These unaudited interim financial statements should be read in conjunction with the financial statements and notes thereto contained in the report on Form 10-K for the year ended December 31, 2017 , filed with the Securities and Exchange Commission. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of significant accounting policies: Basis of presentation: The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30 , 2018 are not necessarily indicative of the results to be expected for the full year. Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying unaudited financial statements, the Managing Member has reviewed, as determined necessary by the Managing Member, events that have occurred after September 30 , 2018, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, or adjustments thereto. 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 financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes, and for determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable. Segment reporting: The Company is organized into one operating segment for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States. The primary geographic region in which the Company seeks leasing opportunities is North America. For the three and nine months ended September 30, 2018 and 2017, and as of September 30, 2018 and December 31, 2017, all of the Company’s operating revenues and long-lived assets relate to customers domiciled in the United States. Accounts receivable Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and notes receivable which are currently due to the Company. Allowances for doubtful accounts are typically established based upon their aging and historical charge off and collection experience and the creditworthiness of specifically identified lessees and borrowers, and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received. Accounts receivable are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of companies with lease or note payments outstanding less than 90 days. Based upon management’s judgment, such leases or notes may be placed in non-accrual status. Leases or notes placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid receivable is probable. Until such time, revenues on operating leases are recognized on a cash basis. All payments received on amounts billed under direct financing leases and notes receivable are applied only against outstanding principal balances. Financing receivables In addition to the allowance established for delinquent accounts receivable, the total allowance related solely to financing receivables also includes anticipated impairment charges on notes receivable and direct financing leases. Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest when due. If it is determined that a loan is impaired with regard to scheduled payments, the Company will perform an analysis of the note to determine if an impairment valuation reserve is necessary. This analysis considers the estimated cash flows from the note, or the collateral value of the property underlying the note when note repayment is collateral dependent. Any required valuation reserve is charged to earnings when determined; and notes are charged off to the allowance as they are deemed uncollectible. The asset underlying a direct financing lease contract is considered impaired if the estimated undiscounted future cash flows of the asset are less than its net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. 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. Investment in securities: From time to time, the Company may purchase securities of its borrowers or receive warrants in connection with its lending arrangements. Purchased securities The Company’s purchased securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company's results of operations. The Company’s purchased securities that do not have readily determinable fair values are measured at cost minus impairment, and adjusted for changes in observable prices. 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 $118 thousand and $121 thousand of purchased securities at September 30 , 2018 and December 31, 2017, respectively. Based upon the Company’s review of its portfolio, an impairment adjustment of $17 thousand and $0 w as deemed necessary during the nine months ended September 30 , 2018 and 2017, respectively. During the respective three months ended September 30 , 2018 and 2017, the Company recorded fair value adjustments of $ 8 thousand and $0. Fair value adjustments of $12 thousand and $0 were recorded during the nine months ended September 30, 2018 and 2017, respectively. Warrants Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet as determined by the Managing Member. During the respective three months ended September 30 , 2018 and 2017, the Company recorded an unrealized gain of $10 thousand and unrealized loss of $ 1 thousand , respectively, and during the nine months ended September 30 , 2018 and 2017, the Company recorded unrealized gain of $20 thousand and unrealized loss of $2 thousand respectively, to adjust its warrants to fair value. As of September 30 , 2018 and December 31, 2017, the estimated fair value of the Company’s portfolio of warrants were $252 thousand and $232 thousand, respectively. There were no exercises of warrants, net or otherwise, during the three and nine months ended September 30 , 2018 and 2017. 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 non-interest bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250,000 . The remainder of the Company’s 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 receivable represent amounts due from in various industries, related to equipment on operating leases. 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 120 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. Initial direct costs: The Company capitalizes initial direct costs (“IDC”) associated with the origination of lease assets. IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease basis based on actual contract term using a straight-line method for operating leases. Upon disposal of the underlying lease assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense. Per Unit data: The Company issues only one class of Units, none of which are considered dilutive. Net income (loss) and distributions per Unit are based upon the weighted average number of Other Members Units outstanding during the period. Fair Value: Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, generally on a national exchange. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market. Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company's own estimates of assumptions that market participants would use in pricing the asset or liability. The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, information from third party remarketing agents, third party appraisals of collateral, and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment, notes receivable and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources. Recent Accounting Pronouncements: In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (“ASU 2018-13”), which amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. This ASU modifies disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this Update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this Update and delay adoption of the additional disclosures until their effective date. Management is currently evaluating the impact of this standard on the financial statements and related disclosure requirements . In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-15 —Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 addresses specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. This guidance is effective for the Company beginning on January 1, 2018. The adoption of ASU 2016-15 did not have a material impact on its financial statements and disclosures. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. Management is currently evaluating the standard and expects the Update may potentially result in an increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new standard will require lessees to recognize lease assets and lease liabilities arising from operating leases with lease terms greater than 12 months in the statement of financial position. Lessor accounting per ASU 2016-02 is mostly unchanged from the previous lease accounting under GAAP. Certain changes were made to the lessor accounting guidance in order to align the lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Similar to the previous guidance, lessors will classify leases as operating, direct financing, or sales-type. Lessors in operating leases will continue to recognize the underlying asset and recognize income on a straight-line basis. Lessors determine whether a lease is a sale of the underlying asset based on whether the lessee effectively obtains control of the underlying assets. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. While early adoption is permitted, the Company does not expect to elect that option. The Company expects to adopt the guidance in the first quarter 2019 using the modified retrospective method. Management is currently evaluating the impact of this standard on the financial statements and its operational and related disclosure requirements, including the impact on the Company’s current lease portfolio from a lessor perspective. As part of the adoption of the standard, the Company has selected and is in the process of implementing new lease accounting software. The Company is in the process of identifying and designing appropriate changes to its business processes, systems and controls to support the new standard. Given the limited changes to lessor accounting, Management does not expect material changes to recognition or measurement. In July 2018, the FASB issued Accounting Standards Update 2018-11, Leases (Topic 842) Targeted Improvements (“ASU 2018-11”). The new standard provides a new transition method and practical expedient to simplify the application of the new leasing standard. Under the new transition method, comparative periods presented in the financial statements in the period of adoption will not need to be restated. Instead, a Company would initially apply the new lease requirements at the effective date, and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company would continue to report comparative periods presented in the financial statements in the period of adoption under current GAAP and provide the applicable required disclosures for such periods. The new practical expedient allows lessors to avoid separating lease and associated nonlease components within a contract if certain criteria are met. If elected, lessors will be able to aggregate nonlease components that otherwise would be accounted for under the new revenue standard with the associated lease component if the following conditions are met (1) the timing and pattern of transfer of the nonlease component and the associated lease component are the same and (2) the stand-alone lease component would be classified as an operating lease if accounted for separately. For entities that have not adopted Topic 842 before the issuance of this Update, the effective date and transition requirements for the amendments in this Update related to separating components of a contract are the same as the effective date and transition requirements in Update 2016-02. The practical expedient may be elected either in the first reporting period following the issuance of this Update or at the original effective date of Topic 842 for that entity. The practical expedient may be applied either retrospectively or prospectively. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements. The Company plans to adopt this guidance on January 1, 2019 and will prospectively apply the new lease requirements and recognize a cumulative effect adjustment upon adoption. The Company expects to utilize the package of practical expedients as provided in the standard. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The new standard provides guidance related to accounting for equity investments and financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (v) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance is effective for the Company beginning on January 1, 2018. The adoption of ASU 2016-01 did have an impact on its financial statements and disclosures (See Note 12). The Company’s purchased securities registered for public sale with readily determinable fair value are carried at fair value. The Company elected to record equity investments without readily determinable fair values at cost, less impairment, and adjusted for changes in observable prices. Any changes in the basis of these equity investments are reported in current earnings. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. This guidance wa s effective for the Company beginning on January 1, 2018. The adoption of ASU 2014-09 did not have a material impact on the Company’s financial statements and disclosures as the new revenue guideline does not affect revenue from leases and loans, which comprise the majority of the Company’s revenues . |
Notes Receivable, Net
Notes Receivable, Net | 9 Months Ended |
Sep. 30, 2018 | |
Notes Receivable [Abstract] | |
Notes Receivable, Net | 3. Notes receivable, net: The Company has various notes receivable from borrowers who have financed the purchase of equipment through the Company. The notes are generally secured by the equipment financed. As of September 30 , 2018 , the original terms of the notes receivable are from 84 to 90 months and have interest rate s ranging from 16.91% to 18 % per annum. The notes had a net outstanding balance of $87 thousand and $125 thousand at September 30 , 2018 and December 31, 2017, respectively . The notes all mature in 2020 . As of September 30 , 2018, two of the Company’s notes receivable previously in non-accrual status as of December 31, 2017 were removed from said status. Details are as follows, in thousands, except for the number of notes receivable and the interest rate: Notes receivable Non-accrual December 31, 2017 Number of notes 2 Net investment value $ 15 Annual interest rate 18% Fair value adjustments $ 15 Fair value amount $ - Interest income not recorded relative to original terms $ 8 |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2018 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses | 4. Allowance for credit losses : The Company’s allowance for credit losses are as follows (in thousands): Allowance for Doubtful Accounts Valuation Adjustments on Financing Receivables Total Operating Leases Notes Receivable Allowance for Credit Losses Balance December 31, 2016 $ 31 $ 69 $ 100 Reversal of credit losses (31) (54) (85) Balance December 31, 2017 - 15 15 Provision for (reversal of) credit losses 1 (15) (14) Balance September 30, 2018 $ 1 $ - $ 1 As of December 31, 2017, 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, 2017 Notes Receivable Finance Leases Allowance for credit losses: Ending balance $ 15 $ - Ending balance: individually evaluated for impairment $ 15 $ - Ending balance: collectively evaluated for impairment $ - $ - Financing receivables: Ending balance $ 140 $ 19 Ending balance: individually evaluated for impairment $ 140 $ 19 Ending balance: collectively evaluated for impairment $ - $ - The Company evaluates the credit quality of its financing receivables on a scale equivalent to the following quality indicators related to corporate risk profiles: Pass – Any account whose lessee/debtor, co-lessee/debtor or any guarantor has a credit rating on publicly traded or privately placed debt issues as rated by Moody’s or S&P for either Senior Unsecured debt, Long Term Issuer rating or Issuer rating that are in the tiers of ratings generally recognized by the investment community as constituting an Investment Grade credit rating; or, has been determined by the Manager to be an Investment Grade Equivalent or High Quality Corporate Credit per its Credit Policy or has a Not Rated internal rating by the Manager and the account is not considered by the Chief Credit Officer of the Manager to fall into one of the three risk profiles below. Special Mention – Any traditional corporate type account with potential weaknesses (e.g. large net losses or major industry downturns) or, any growth capital account that has less than three months of cash as of the end of the calendar quarter to fund their continuing operations. These accounts deserve management’s close attention. If left uncorrected, those potential weaknesses may result in deterioration of the Fund’s receivable at some future date. Substandard – Any account that is inadequately protected by the current worth and paying capacity of the borrower or of the collateral pledged, if any. Accounts that are so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Fund will sustain some loss as the likelihood of fully collecting all receivables may be questionable if the deficiencies are not corrected. Such accounts are on the Manager’s Credit Watch List. Doubtful – Any account where the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Accordingly, an account that is so classified is on the Manager’s Credit Watch List, and has been declared in default and the Manager has repossessed, or is attempting to repossess, the equipment it financed. This category includes impaired notes and leases as applicable. At September 30 , 2018 , and December 31, 2017, the Company’s investment in 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 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Pass $ 87 $ - $ 4 $ 19 Special mention - 140 - - Substandard - - - - Doubtful - - - - Total $ 87 $ 140 $ 4 $ 19 As of December 31, 2017, the Company’s impaired investment in financing receivables were as follows (in thousands): Impaired Loans December 31, 2017 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 140 15 15 166 - Total $ 140 $ 15 $ 15 $ 166 $ - At September 30 , 2018 and December 31, 2017, the investment in financing receivables is aged as follows (in thousands): September 30, 2018 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 $ - $ - $ - $ - $ 87 $ 87 $ - Finance leases - - - - 4 4 - Total $ - $ - $ - $ - $ 91 $ 91 $ - December 31, 2017 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 $ - $ - $ - $ - $ 140 $ 140 $ - Finance leases - - - - 19 19 - Total $ - $ - $ - $ - $ 159 $ 159 $ - At December 31, 2017 , the Company had two notes receivable which were on non-accrual status (See Note 3). These same notes were removed from non-accrual status as of September 30, 2018. |
Investments in Equipment and Le
Investments in Equipment and Leases, Net | 9 Months Ended |
Sep. 30, 2018 | |
Investments in Equipment and Leases, Net [Abstract] | |
Investments in Equipment and Leases, Net | 5. Investments in equipment and leases, net: The Company’s investment in equipment and leases consists of the following (in thousands): Reclassifications, Depreciation/ Improvements/ Amortization Balance Dispositions and Expense or Balance December 31, Impairment Amortization September 30, 2017 Losses of Leases 2018 Net investment in operating leases $ 22,612 $ (1,426) $ (2,428) $ 18,758 Net investment in direct financing leases 19 - (15) 4 Assets held for sale or lease, net 652 1,126 - 1,778 Initial direct costs, net of accumulated amortization of $9 at September 30, 2018 and $60 at December 31, 2017 8 - (6) 2 Total $ 23,291 $ (300) $ (2,449) $ 20,542 Impairment of investments in lease assets : Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the Company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract, if any. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances. As a result of these reviews, the Company had no i mpairment losses during the three months ended September 30 , 2018 and 2017. The Company recorded $0 and $21 thousand of impairment losses for the respective nine months ended September 30, 2018 and 2017. 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 $ 764 thousand and $ 1. 0 million for the respective three months ended September 30 , 2018 and 2017, and totaled $2.4 million and $3.2 million for the respective nine months ended September 30, 2018 and 2017 . IDC amortization expense related to operating leases totaled $0 and $4 thousand for the respective three months ended September 30 , 2018 and 2017, and totaled $6 thousand and $13 thousand for the respective nine months ended September 30, 2018 and 2017 . Operating leases: Property on operating leases consists of the following (in thousands): Balance Balance December 31, Reclassifications September 30, 2017 Additions or Dispositions 2018 Marine vessel $ 19,410 $ - $ - $ 19,410 Transportation, rail 9,211 - (1,786) 7,425 Transportation 7,467 - - 7,467 Manufacturing 6,595 - (278) 6,317 Research 2,250 - (2,250) - Materials handling 1,485 - (86) 1,399 Construction 1,264 - (207) 1,057 Agriculture 542 - - 542 Air support equipment 120 - - 120 Other 83 - - 83 48,427 - (4,607) 43,820 Less accumulated depreciation (25,815) (2,428) 3,181 (25,062) Total $ 22,612 $ (2,428) $ (1,426) $ 18,758 The average estimated residual value for assets on operating leases was 38% of the assets’ original cost at both September 30 , 2018 and December 31, 2017 , respectively. There were no operating leases in non-accrual status at both September 30 , 2018 and December 31, 2017 . All of the Company’s lease asset purchases and capital improvements were made during the years from 2009 through 2015. Direct financing leases: As of September 30 , 2018 and December 31, 2017 , investment in direct financing leases consists of materials handling equipment. The components of the Company’s investment in direct financing leases as of September 30 , 2018 and December 31, 2017 are as follows (in thousands): Balance Balance September 30, December 31, 2018 2017 Total minimum lease payments receivable $ 2 $ 22 Estimated residual values of leased equipment (unguaranteed) 2 1 Investment in direct financing leases 4 23 Less unearned income - (4) Net investment in direct financing leases $ 4 $ 19 As of September 30 , 2018 and December 31, 2017 , there were no investments in direct financing leases in non-accrual status. At September 30 , 2018, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands): Operating Leases Direct Financing Leases Total Three months ending December 31, 2018 $ 1,027 $ 2 $ 1,029 Year ending December 31, 2019 1,519 - 1,519 2020 342 - 342 2021 78 - 78 2022 24 - 24 2023 12 - 12 $ 3,002 $ 2 $ 3,004 The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of September 30 , 2018, 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 Construction 7 - 10 Materials handling 7 - 10 Transportation 7 - 10 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 6. Related party transactions: The terms of the Operating Agreement provide that the Managing Member and/or affiliates are entitled to receive certain fees for equipment management and resale and for management of the Company. The Operating Agreement allows for the reimbursement of costs incurred by the Managing Member and/or affiliates for providing administrative services to the Company. Administrative services provided include Company accounting, investor relations, legal counsel, and lease and equipment documentation. The Managing Member is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of investments. Each of ATEL Financial Services, LLC (“AFS”) and ATEL Leasing Corporation (“ALC”) is a wholly-owned subsidiary of ATEL Capital Group and performs services for the Company on behalf of the Managing Member. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; investor relations, communications and general administrative services are performed by AFS. Cost reimbursements to the Managing Member or its affiliates are based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as total assets, number of investors or contributed capital based upon the type of cost incurred. The Managing Member believes that the costs reimbursed are the lower of (i) actual costs incurred on behalf of the Company or (ii) the amount the Company would be required to pay independent parties for comparable administrative services in the same geographic location. The Managing Member and/or affiliates earned fees and billed for reimbursements of costs and expenses, pursuant to the Operating Agreement, during the three and nine months ended September 30 , 2018 and 2017 as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Administrative costs reimbursed to Managing Member and/or affiliates $ 140 $ 178 $ 561 $ 587 Asset management fees to Managing Member 67 94 215 273 $ 207 $ 272 $ 776 $ 860 |
Non-Recourse Debt
Non-Recourse Debt | 9 Months Ended |
Sep. 30, 2018 | |
Non-Recourse Debt [Abstract] | |
Non-Recourse Debt | 7 . Non-recourse debt: At September 30 , 2018 , non-recourse debt consists of notes payable to financial institutions. The notes are due in monthly installments. Interest on the notes is at fixed rates ranging from 2 . 23 % to 2 . 8 0 % per annum . The notes are secured by assignments of lease payments and pledges of assets used to secure the notes . At September 30 , 2018 , gross operating lease rentals totaled $ 1.8 million over the remaining lease terms, and the carrying value of the pledged assets is $ 12.3 million. The notes mature at various dates from 2018 through 2019 . The non-recourse debt does not contain any material financial covenants. The debt is secured by a specific lien granted by the Company to the non-recourse lenders on (and only on) the discounted lease transactions. The lenders have recourse only to the following collateral: the leased equipment; the related lease chattel paper; the lease receivables; and proceeds of the foregoing items. The non-recourse obligation is payable solely out of the respective specific security and the Company does not guarantee (nor is the Company otherwise contractually responsible for) the payment of the non-recourse debt as a general obligation or liability of the Company. Although the Company does not have any direct or general liability in connection with the non-recourse debt apart from the security granted, the Company is directly and generally liable and responsible for certain representations, warranties, and covenants made to the lenders, such as warranties as to genuineness of the transaction parties' signatures, as to the genuineness of the respective lease chattel paper or the transaction as a whole, or as to the Company's good title to or perfected interest in the secured collateral, as well as similar representations, warranties and covenants typically provided by non-recourse borrowers and customary in the equipment finance industry, and are viewed by such industry as being consistent with non-recourse discount financing obligations. Accordingly, as there are no financial covenants or ratios imposed on the Company in connection with the non-recourse debt, the Company has determined that there are no material covenants with respect to the non-recourse debt that warrant footnote disclosure. Future minimum payments of non-recourse debt are as follows (in thousands): Principal Interest Total Three months ending December 31, 2018 $ 781 $ 10 $ 791 Year ending December 31, 2019 996 8 1,004 $ 1,777 $ 18 $ 1,795 |
Senior Long-Term Debt
Senior Long-Term Debt | 9 Months Ended |
Sep. 30, 2018 | |
Senior Long-Term Debt [Abstract] | |
Senior Long-Term Debt | 8. Senior long-term debt: As of September 30 , 2018 , the $2.1 million of senior 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 | 9 Months Ended |
Sep. 30, 2018 | |
Borrowing Facilities [Abstract] | |
Borrowing Facilities | 9. Borrowing facilities: The Company participates with ATEL Capital Group and certain subsidiaries and affiliated funds in a $75 million revolving credit facility (the “Credit Facility”) with a syndicate of financial institutions as lenders. The Credit Facility is comprised of a working capital facility, an acquisition facility (the “Acquisition Facility”) and a warehouse facility (the “Warehouse Facility”), the Company and affiliates, and a venture facility. After various amendments to extend, and adjust the base amounts availability , the Credit Facility has been extended to September 30, 2019 and ATEL 17, LLC, an affiliated company, has been added to the credit facility . 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 September 30 , 2018 and December 31, 2017, borrowings under the Credit Facility were as follows (in thousands): September 30, December 31, 2018 2017 Total available under the financing arrangement $ 75,000 $ 75,000 Amount borrowed by the Company under the acquisition facility (1,200) (1,950) Amount borrowed by affiliated partnerships and limited liability companies under the venture, acquisition, and warehouse facilities (925) (3,820) Total remaining available under the venture, acquisition and warehouse facilities $ 72,875 $ 69,230 The Company and its affiliates pay an annual commitment fee to have access to this line of credit. As of September 30 , 2018 , the aggregate amount of the Credit Facility is potentially available to the Company, subject to certain sub-facility and borrowing-base limitations. However, as amounts are drawn on the Credit Facility by each of the Company and the affiliates who are borrowers under the Credit Facility, the amount remaining available to all borrowers to draw under the Credit Facility is reduced. As the Warehousing Facility is a short term bridge facility, any amounts borrowed under the Warehousing Facility, and then repaid by the affiliated borrowers (including the Company) upon allocation of an acquisition to a specific purchaser, become available under the Warehouse Facility for further short term borrowing. As of September 30 , 2018 , 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 $ 16.1 million, 0.31 to 1, and 21.16 to 1, respectively, as of September 30 , 2018 . As such, as of September 30 , 2018 , 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. 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 the 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 September 30 , 2018 , the investment program participants were the Company, ATEL 15, LLC, ATEL 16, LLC and ATEL 17, LLC. 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 and 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. The Company borrowed $1.2 million and approximately $2 million under the Acquisition Facility as of September 30 , 2018 and December 31, 2017, respectively . |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2018 | |
Commitments [Abstract] | |
Commitments | 10 . Commitments: At September 30 , 2018 , there were no commitments to fund investments in notes receivable and to purchase lease assets. |
Members' Capital
Members' Capital | 9 Months Ended |
Sep. 30, 2018 | |
Members' Capital [Abstract] | |
Members' Capital | 11 . Members’ capital: A total of 8,246,919 and 8,257,599 Units were issued and outstanding as of September 30 , 2018 and December 31, 2017 , respectively. These amounts included the 50 Units issued to the initial 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. Distributions to the Other Members for the three and nine months ended September 30 , 2018 and 2017 were as follows (in thousands except Units and per Unit data): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Distributions declared $ - $ 1,848 $ 5 $ 5,566 Weighted average number of Units outstanding 8,246,919 8,281,477 8,249,089 8,295,717 Weighted average distributions per Unit $ 0.00 $ 0.22 $ 0.00 $ 0.67 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 12 . Fair value measurements: Under applicable accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. At September 30, 2018, the Company’s certain investment in securities registered for public sale and warrants were measured on a recurring basis. At December 31, 2017, only the Company’s warrants were measured on a recurring basis. In addition, certain off-lease equipment deemed impaired were measured at fair value on a non-recurring basis as of September 30, 2018. During the year ended December 31, 2017, certain notes receivable were deemed impaired and measured at fair value on a non-recurring basis . Warrants (recurring) Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried on the balance sheet at an estimated fair value at the end of the period. The valuation of the warrants was determined using a Black-Scholes formulation of value based upon the stock price(s), the exercise price(s), the volatility of comparable venture companies, time to maturity, and a risk free interest rate for the term(s) of the warrant exercise(s). As of September 30 , 2018 and December 31, 2017 , the calculated fair value of the Fund’s warrant portfolio approximated $252 thousand and $232 thousand, respectively. Such valuations are classified within Level 3 of the valuation hierarchy. The fair value of warrants that were accounted for on a recurring basis for the three and nine months ended September 30 , 2018 and 2017 and classified as Level 3 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Fair value of warrants at beginning of period $ 242 $ 246 $ 232 $ 247 Unrealized gain (loss) on fair value adjustment for warrants 10 (1) 20 (2) Fair value of warrants at end of period $ 252 $ 245 $ 252 $ 245 Investment securities (recurring) The Company’s investment securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company's results of operations. 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 fair value of investment securities that were accounted for on a recurring basis as of the three and nine months ended September 30 , 2018 and classified as Level 1 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2018 Fair value of securities at beginning of period $ 41 21 Unrealized (loss) gain on fair value of securities (8) 12 Fair value of investment securities at end of period $ 33 33 Impaired off-lease equipment (non-recurring) During the three months ended September 30, 2018 and 2017, no fair value adjustments were made. During the nine months ended September 30 , 2018 and 2017 , the Company recorded fair value adjustments totaling $0 and $21 thousand, respectively, to reduce the cost basis of certain off-lease research and construction equipment. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of impaired lease assets were classified within Level 3 of the valuation hierarchy as the data sources utilized for the valuation of such assets reflect significant inputs that are unobservable in the market. Such valuation utilizes a market approach technique and uses inputs that reflect the sales price of similar assets sold by affiliates and/or information from third party remarketing agents not readily available in the market. The following 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 September 30 , 2018 and December 31, 2017: September 30, 2018 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.00 - $32.07 Exercise price $0.1 - $1,000.00 Time to maturity (in years) 1.87 - 7.33 Risk-free interest rate 2.77% - 3.01% Annualized volatility 49.57% - 88.72% December 31, 2017 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.00 - $14.75 Exercise price $0.01 - $1,000.00 Time to maturity (in years) 2.62 - 8.08 Risk-free interest rate 1.94% - 2.36% Annualized volatility 52.08% - 84.08% 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. Non-recourse debt and Senior l ong-term debt The fair value of the Company’s non-recourse and senior long-term debt is estimated using discounted cash flow analyses, based upon current market borrowing rates for similar types of borrowing arrangements. Credit facility The credit facility includes the outstanding amounts on the Company’s credit facility. The carrying amount of these variable rate obligations approximate fair value based on current borrowing rates for similar types of borrowings. 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 Codification at September 30 , 2018 and December 31, 2017 (in thousands): Fair Value Measurements at September 30, 2018 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 720 $ 720 $ - $ - $ 720 Investment in securities 33 33 - - 33 Warrants, fair value 252 - - 252 252 Financial liabilities: Non-recourse debt 1,777 - - 1,769 1,769 Senior long-term debt 2,068 - - 2,432 2,432 Credit facility 1,200 - - 1,200 1,200 Fair Value Measurements at December 31, 2017 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,266 $ 1,266 $ - $ - $ 1,266 Warrants, fair value 232 - - 232 232 Financial liabilities: Non-recourse debt 4,229 - - 4,218 4,218 Senior long-term debt 2,068 - - 2,379 2,379 Credit facility 1,950 - - 1,950 1,950 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation: The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30 , 2018 are not necessarily indicative of the results to be expected for the full year. Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying unaudited financial statements, the Managing Member has reviewed, as determined necessary by the Managing Member, events that have occurred after September 30 , 2018, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, or adjustments thereto. |
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 financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes, and for determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable. |
Segment Reporting | Segment reporting: The Company is organized into one operating segment for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States. The primary geographic region in which the Company seeks leasing opportunities is North America. For the three and nine months ended September 30, 2018 and 2017, and as of September 30, 2018 and December 31, 2017, all of the Company’s operating revenues and long-lived assets relate to customers domiciled in the United States. |
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 upon their aging and historical charge off and collection experience and the creditworthiness of specifically identified lessees and borrowers, and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received. Accounts receivable are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of companies with lease or note payments outstanding less than 90 days. Based upon management’s judgment, such leases or notes may be placed in non-accrual status. Leases or notes placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid receivable is probable. Until such time, revenues on operating leases are recognized on a cash basis. All payments received on amounts billed under direct financing leases and notes receivable are applied only against outstanding principal balances. |
Financing Receivables | Financing receivables In addition to the allowance established for delinquent accounts receivable, the total allowance related solely to financing receivables also includes anticipated impairment charges on notes receivable and direct financing leases. Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest when due. If it is determined that a loan is impaired with regard to scheduled payments, the Company will perform an analysis of the note to determine if an impairment valuation reserve is necessary. This analysis considers the estimated cash flows from the note, or the collateral value of the property underlying the note when note repayment is collateral dependent. Any required valuation reserve is charged to earnings when determined; and notes are charged off to the allowance as they are deemed uncollectible. The asset underlying a direct financing lease contract is considered impaired if the estimated undiscounted future cash flows of the asset are less than its net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. 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. |
Investment in Securities | Investment in securities: From time to time, the Company may purchase securities of its borrowers or receive warrants in connection with its lending arrangements. Purchased securities The Company’s purchased securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company's results of operations. The Company’s purchased securities that do not have readily determinable fair values are measured at cost minus impairment, and adjusted for changes in observable prices. 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 $118 thousand and $121 thousand of purchased securities at September 30 , 2018 and December 31, 2017, respectively. Based upon the Company’s review of its portfolio, an impairment adjustment of $17 thousand and $0 w as deemed necessary during the nine months ended September 30 , 2018 and 2017, respectively. During the respective three months ended September 30 , 2018 and 2017, the Company recorded fair value adjustments of $ 8 thousand and $0. Fair value adjustments of $12 thousand and $0 were recorded during the nine months ended September 30, 2018 and 2017, respectively. Warrants Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet as determined by the Managing Member. During the respective three months ended September 30 , 2018 and 2017, the Company recorded an unrealized gain of $10 thousand and unrealized loss of $ 1 thousand , respectively, and during the nine months ended September 30 , 2018 and 2017, the Company recorded unrealized gain of $20 thousand and unrealized loss of $2 thousand respectively, to adjust its warrants to fair value. As of September 30 , 2018 and December 31, 2017, the estimated fair value of the Company’s portfolio of warrants were $252 thousand and $232 thousand, respectively. There were no exercises of warrants, net or otherwise, during the three and nine months ended September 30 , 2018 and 2017. |
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 non-interest bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250,000 . The remainder of the Company’s 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 receivable represent amounts due from in various industries, related to equipment on operating leases. |
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 120 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. |
Initial Direct Costs | Initial direct costs: The Company capitalizes initial direct costs (“IDC”) associated with the origination of lease assets. IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease basis based on actual contract term using a straight-line method for operating leases. Upon disposal of the underlying lease assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense. |
Per Unit Data | Per Unit data: The Company issues only one class of Units, none of which are considered dilutive. Net income (loss) and distributions per Unit are based upon the weighted average number of Other Members Units outstanding during the period. |
Fair Value | Fair Value: Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, generally on a national exchange. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market. Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company's own estimates of assumptions that market participants would use in pricing the asset or liability. The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, information from third party remarketing agents, third party appraisals of collateral, and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment, notes receivable and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (“ASU 2018-13”), which amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. This ASU modifies disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this Update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this Update and delay adoption of the additional disclosures until their effective date. Management is currently evaluating the impact of this standard on the financial statements and related disclosure requirements . In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-15 —Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 addresses specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. This guidance is effective for the Company beginning on January 1, 2018. The adoption of ASU 2016-15 did not have a material impact on its financial statements and disclosures. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. Management is currently evaluating the standard and expects the Update may potentially result in an increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new standard will require lessees to recognize lease assets and lease liabilities arising from operating leases with lease terms greater than 12 months in the statement of financial position. Lessor accounting per ASU 2016-02 is mostly unchanged from the previous lease accounting under GAAP. Certain changes were made to the lessor accounting guidance in order to align the lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Similar to the previous guidance, lessors will classify leases as operating, direct financing, or sales-type. Lessors in operating leases will continue to recognize the underlying asset and recognize income on a straight-line basis. Lessors determine whether a lease is a sale of the underlying asset based on whether the lessee effectively obtains control of the underlying assets. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. While early adoption is permitted, the Company does not expect to elect that option. The Company expects to adopt the guidance in the first quarter 2019 using the modified retrospective method. Management is currently evaluating the impact of this standard on the financial statements and its operational and related disclosure requirements, including the impact on the Company’s current lease portfolio from a lessor perspective. As part of the adoption of the standard, the Company has selected and is in the process of implementing new lease accounting software. The Company is in the process of identifying and designing appropriate changes to its business processes, systems and controls to support the new standard. Given the limited changes to lessor accounting, Management does not expect material changes to recognition or measurement. In July 2018, the FASB issued Accounting Standards Update 2018-11, Leases (Topic 842) Targeted Improvements (“ASU 2018-11”). The new standard provides a new transition method and practical expedient to simplify the application of the new leasing standard. Under the new transition method, comparative periods presented in the financial statements in the period of adoption will not need to be restated. Instead, a Company would initially apply the new lease requirements at the effective date, and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company would continue to report comparative periods presented in the financial statements in the period of adoption under current GAAP and provide the applicable required disclosures for such periods. The new practical expedient allows lessors to avoid separating lease and associated nonlease components within a contract if certain criteria are met. If elected, lessors will be able to aggregate nonlease components that otherwise would be accounted for under the new revenue standard with the associated lease component if the following conditions are met (1) the timing and pattern of transfer of the nonlease component and the associated lease component are the same and (2) the stand-alone lease component would be classified as an operating lease if accounted for separately. For entities that have not adopted Topic 842 before the issuance of this Update, the effective date and transition requirements for the amendments in this Update related to separating components of a contract are the same as the effective date and transition requirements in Update 2016-02. The practical expedient may be elected either in the first reporting period following the issuance of this Update or at the original effective date of Topic 842 for that entity. The practical expedient may be applied either retrospectively or prospectively. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements. The Company plans to adopt this guidance on January 1, 2019 and will prospectively apply the new lease requirements and recognize a cumulative effect adjustment upon adoption. The Company expects to utilize the package of practical expedients as provided in the standard. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The new standard provides guidance related to accounting for equity investments and financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (v) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance is effective for the Company beginning on January 1, 2018. The adoption of ASU 2016-01 did have an impact on its financial statements and disclosures (See Note 12). The Company’s purchased securities registered for public sale with readily determinable fair value are carried at fair value. The Company elected to record equity investments without readily determinable fair values at cost, less impairment, and adjusted for changes in observable prices. Any changes in the basis of these equity investments are reported in current earnings. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. This guidance wa s effective for the Company beginning on January 1, 2018. The adoption of ASU 2014-09 did not have a material impact on the Company’s financial statements and disclosures as the new revenue guideline does not affect revenue from leases and loans, which comprise the majority of the Company’s revenues . |
Notes Receivable, Net (Tables)
Notes Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Receivable [Abstract] | |
Schedule of Notes Receivable on Non-Accrual Status | As of September 30 , 2018, two of the Company’s notes receivable previously in non-accrual status as of December 31, 2017 were removed from said status. Details are as follows, in thousands, except for the number of notes receivable and the interest rate: Notes receivable Non-accrual December 31, 2017 Number of notes 2 Net investment value $ 15 Annual interest rate 18% Fair value adjustments $ 15 Fair value amount $ - Interest income not recorded relative to original terms $ 8 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Allowance for Credit Losses [Abstract] | |
Activity in Allowance for Doubtful Accounts | The Company’s allowance for credit losses are as follows (in thousands): Allowance for Doubtful Accounts Valuation Adjustments on Financing Receivables Total Operating Leases Notes Receivable Allowance for Credit Losses Balance December 31, 2016 $ 31 $ 69 $ 100 Reversal of credit losses (31) (54) (85) Balance December 31, 2017 - 15 15 Provision for (reversal of) credit losses 1 (15) (14) Balance September 30, 2018 $ 1 $ - $ 1 |
Recorded Investment in Financing Receivables | As of December 31, 2017, 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, 2017 Notes Receivable Finance Leases Allowance for credit losses: Ending balance $ 15 $ - Ending balance: individually evaluated for impairment $ 15 $ - Ending balance: collectively evaluated for impairment $ - $ - Financing receivables: Ending balance $ 140 $ 19 Ending balance: individually evaluated for impairment $ 140 $ 19 Ending balance: collectively evaluated for impairment $ - $ - |
Financing Receivables by Credit Quality Indicator and by Class | At September 30 , 2018 , and December 31, 2017, the Company’s investment in 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 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Pass $ 87 $ - $ 4 $ 19 Special mention - 140 - - Substandard - - - - Doubtful - - - - Total $ 87 $ 140 $ 4 $ 19 |
Schedule of Impaired Loans | As of December 31, 2017, the Company’s impaired investment in financing receivables were as follows (in thousands): Impaired Loans December 31, 2017 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 140 15 15 166 - Total $ 140 $ 15 $ 15 $ 166 $ - |
Net Investment in Financing Receivables by Age | At September 30 , 2018 and December 31, 2017, the investment in financing receivables is aged as follows (in thousands): September 30, 2018 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 $ - $ - $ - $ - $ 87 $ 87 $ - Finance leases - - - - 4 4 - Total $ - $ - $ - $ - $ 91 $ 91 $ - December 31, 2017 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 $ - $ - $ - $ - $ 140 $ 140 $ - Finance leases - - - - 19 19 - Total $ - $ - $ - $ - $ 159 $ 159 $ - |
Investments in Equipment and _2
Investments in Equipment and Leases, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments in Equipment and Leases, Net [Abstract] | |
Investment in Leases | The Company’s investment in equipment and leases consists of the following (in thousands): Reclassifications, Depreciation/ Improvements/ Amortization Balance Dispositions and Expense or Balance December 31, Impairment Amortization September 30, 2017 Losses of Leases 2018 Net investment in operating leases $ 22,612 $ (1,426) $ (2,428) $ 18,758 Net investment in direct financing leases 19 - (15) 4 Assets held for sale or lease, net 652 1,126 - 1,778 Initial direct costs, net of accumulated amortization of $9 at September 30, 2018 and $60 at December 31, 2017 8 - (6) 2 Total $ 23,291 $ (300) $ (2,449) $ 20,542 |
Property on Operating Leases | Property on operating leases consists of the following (in thousands): Balance Balance December 31, Reclassifications September 30, 2017 Additions or Dispositions 2018 Marine vessel $ 19,410 $ - $ - $ 19,410 Transportation, rail 9,211 - (1,786) 7,425 Transportation 7,467 - - 7,467 Manufacturing 6,595 - (278) 6,317 Research 2,250 - (2,250) - Materials handling 1,485 - (86) 1,399 Construction 1,264 - (207) 1,057 Agriculture 542 - - 542 Air support equipment 120 - - 120 Other 83 - - 83 48,427 - (4,607) 43,820 Less accumulated depreciation (25,815) (2,428) 3,181 (25,062) Total $ 22,612 $ (2,428) $ (1,426) $ 18,758 |
Components of Company's Investment in Direct Financing Leases | The components of the Company’s investment in direct financing leases as of September 30 , 2018 and December 31, 2017 are as follows (in thousands): Balance Balance September 30, December 31, 2018 2017 Total minimum lease payments receivable $ 2 $ 22 Estimated residual values of leased equipment (unguaranteed) 2 1 Investment in direct financing leases 4 23 Less unearned income - (4) Net investment in direct financing leases $ 4 $ 19 |
Future Minimum Lease Payments Receivable | At September 30 , 2018, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands): Operating Leases Direct Financing Leases Total Three months ending December 31, 2018 $ 1,027 $ 2 $ 1,029 Year ending December 31, 2019 1,519 - 1,519 2020 342 - 342 2021 78 - 78 2022 24 - 24 2023 12 - 12 $ 3,002 $ 2 $ 3,004 |
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 September 30 , 2018, 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 Construction 7 - 10 Materials handling 7 - 10 Transportation 7 - 10 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Managing Member and/or Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement | The Managing Member and/or affiliates earned fees and billed for reimbursements of costs and expenses, pursuant to the Operating Agreement, during the three and nine months ended September 30 , 2018 and 2017 as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Administrative costs reimbursed to Managing Member and/or affiliates $ 140 $ 178 $ 561 $ 587 Asset management fees to Managing Member 67 94 215 273 $ 207 $ 272 $ 776 $ 860 |
Non-Recourse Debt (Tables)
Non-Recourse Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Non-Recourse Debt [Abstract] | |
Future Minimum Payments of Non-Recourse Debt | Future minimum payments of non-recourse debt are as follows (in thousands): Principal Interest Total Three months ending December 31, 2018 $ 781 $ 10 $ 791 Year ending December 31, 2019 996 8 1,004 $ 1,777 $ 18 $ 1,795 |
Borrowing Facilities (Tables)
Borrowing Facilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Borrowing Facilities [Abstract] | |
Borrowings under Credit Facility | As of September 30 , 2018 and December 31, 2017, borrowings under the Credit Facility were as follows (in thousands): September 30, December 31, 2018 2017 Total available under the financing arrangement $ 75,000 $ 75,000 Amount borrowed by the Company under the acquisition facility (1,200) (1,950) Amount borrowed by affiliated partnerships and limited liability companies under the venture, acquisition, and warehouse facilities (925) (3,820) Total remaining available under the venture, acquisition and warehouse facilities $ 72,875 $ 69,230 |
Members' Capital (Tables)
Members' Capital (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Members' Capital [Abstract] | |
Distributions to Other Members | Distributions to the Other Members for the three and nine months ended September 30 , 2018 and 2017 were as follows (in thousands except Units and per Unit data): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Distributions declared $ - $ 1,848 $ 5 $ 5,566 Weighted average number of Units outstanding 8,246,919 8,281,477 8,249,089 8,295,717 Weighted average distributions per Unit $ 0.00 $ 0.22 $ 0.00 $ 0.67 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30 , 2018 and December 31, 2017: September 30, 2018 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.00 - $32.07 Exercise price $0.1 - $1,000.00 Time to maturity (in years) 1.87 - 7.33 Risk-free interest rate 2.77% - 3.01% Annualized volatility 49.57% - 88.72% December 31, 2017 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.00 - $14.75 Exercise price $0.01 - $1,000.00 Time to maturity (in years) 2.62 - 8.08 Risk-free interest rate 1.94% - 2.36% Annualized volatility 52.08% - 84.08% |
Estimated Fair Values of Financial Instruments | The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at September 30 , 2018 and December 31, 2017 (in thousands): Fair Value Measurements at September 30, 2018 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 720 $ 720 $ - $ - $ 720 Investment in securities 33 33 - - 33 Warrants, fair value 252 - - 252 252 Financial liabilities: Non-recourse debt 1,777 - - 1,769 1,769 Senior long-term debt 2,068 - - 2,432 2,432 Credit facility 1,200 - - 1,200 1,200 Fair Value Measurements at December 31, 2017 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,266 $ 1,266 $ - $ - $ 1,266 Warrants, fair value 232 - - 232 232 Financial liabilities: Non-recourse debt 4,229 - - 4,218 4,218 Senior long-term debt 2,068 - - 2,379 2,379 Credit facility 1,950 - - 1,950 1,950 |
Warrant [Member] | |
Warrants and Investment Securities on a Recurring Basis | The fair value of warrants that were accounted for on a recurring basis for the three and nine months ended September 30 , 2018 and 2017 and classified as Level 3 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Fair value of warrants at beginning of period $ 242 $ 246 $ 232 $ 247 Unrealized gain (loss) on fair value adjustment for warrants 10 (1) 20 (2) Fair value of warrants at end of period $ 252 $ 245 $ 252 $ 245 |
Equity Securities [Member] | |
Warrants and Investment Securities on a Recurring Basis | The fair value of investment securities that were accounted for on a recurring basis as of the three and nine months ended September 30 , 2018 and classified as Level 1 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2018 Fair value of securities at beginning of period $ 41 21 Unrealized (loss) gain on fair value of securities (8) 12 Fair value of investment securities at end of period $ 33 33 |
Organization and Limited Liab_2
Organization and Limited Liability Company Matters (Narrative) (Details) - USD ($) | 9 Months Ended | 114 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | May 08, 2009 | |
Organization and Limited Liability Company Matters [Abstract] | |||
Business activities, description | equipment financing and acquiring equipment to engage in equipment leasing and sales activities | ||
Business termination date | Dec. 31, 2030 | ||
Business formation date | Apr. 1, 2009 | ||
Business formation State | California | ||
Contributions of capital | $ 500 | ||
Contributions received, net of rescissions | $ 83,500,000 | $ 83,500,000 | |
Units issued | 8,246,919 | 8,246,919 | |
Units outstanding | 8,246,919 | 8,246,919 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Equipment on operating leases, depreciation method | straight-line | |||||||
Warrants, fair value | $ 252,000 | $ 245,000 | $ 252,000 | $ 245,000 | $ 242,000 | $ 232,000 | $ 246,000 | $ 247,000 |
Number of operating segments | segment | 1 | |||||||
Number of reportable segments | segment | 1 | |||||||
Investment in securities | 118,000 | $ 118,000 | 121,000 | |||||
Unrealized gains (loss) on warrants, net | 10,000 | (1,000) | 20,000 | (2,000) | ||||
Unrealized (loss) gain on fair value adjustment for marketable securities | (8,000) | 12,000 | ||||||
Operating leases in non-accrual status | 0 | 0 | $ 0 | |||||
Exercises of warrants | 0 | $ 0 | 0 | $ 0 | ||||
Minimum [Member] | ||||||||
Required assets value of financial institutions for cash deposits | $ 10,000,000,000 | |||||||
Operating leases, initial terms | 36 months | |||||||
Operating leases, period for non-accrual status | 90 days | |||||||
Accounts receivable, period for non-accrual status | 90 days | |||||||
Maximum [Member] | ||||||||
U.S. Treasury instruments maturity period | 90 days | |||||||
Cash deposits, insured amount | $ 250,000 | $ 250,000 | ||||||
Operating leases, initial terms | 120 months | |||||||
Equipment and lessee period of review for impairment | 90 days | |||||||
Accounts receivable, period for review of impairment | 90 days |
Notes Receivable, Net (Narrativ
Notes Receivable, Net (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Notes receivable, maturity date, description | The notes all mature in 2020 | |
Notes receivable, net | $ 87 | $ 125 |
Minimum [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Terms of the notes receivable | 84 months | |
Notes receivable, interest rate | 16.91% | |
Maximum [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Terms of the notes receivable | 90 months | |
Notes receivable, interest rate | 18.00% |
Notes Receivable, Net (Schedule
Notes Receivable, Net (Schedule of Notes Receivable on Non-Accrual Status) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)contract | |
Notes Receivable [Abstract] | |
Number of notes | contract | 2 |
Net investment value | $ 15 |
Annual interest rate | 18.00% |
Fair value adjustments | $ 15 |
Fair value amount | |
Interest income not recorded relative to original terms | $ 8 |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017contract | |
Allowance for Credit Losses [Abstract] | |
Number of notes in non-accrual status | 2 |
Allowance for Credit Losses (Ac
Allowance for Credit Losses (Activity in Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning Balance | $ 15 | $ 100 | $ 100 | ||
Reversal of provision for credit losses | $ (1) | $ (11) | (14) | (61) | (85) |
Ending Balance | 1 | 1 | 15 | ||
Allowance For Doubtful Accounts [Member] | Operating Leases [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning Balance | 31 | 31 | |||
Reversal of provision for credit losses | 1 | (31) | |||
Ending Balance | $ 1 | 1 | |||
Valuation Adjustments on Financing Receivables [Member] | Notes Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning Balance | 15 | $ 69 | 69 | ||
Reversal of provision for credit losses | $ (15) | (54) | |||
Ending Balance | $ 15 |
Allowance for Credit Losses (Re
Allowance for Credit Losses (Recorded Investment in Financing Receivables) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivables: | ||
Ending balance | $ 91 | $ 159 |
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 | 4 | 19 |
Ending balance: individually evaluated for impairment | 19 | |
Ending balance: collectively evaluated for impairment | ||
Notes Receivable [Member] | ||
Allowances for credit losses: | ||
Ending balance | 15 | |
Ending balance: individually evaluated for impairment | 15 | |
Ending balance: collectively evaluated for impairment | ||
Financing Receivables: | ||
Ending balance | $ 87 | 140 |
Ending balance: individually evaluated for impairment | 140 | |
Ending balance: collectively evaluated for impairment |
Allowance for Credit Losses (Fi
Allowance for Credit Losses (Financing Receivables by Credit Quality Indicator and by Class) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Finance Leases [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Finance Leases | $ 4 | $ 19 |
Finance Leases [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Finance Leases | 4 | 19 |
Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes Receivable | 87 | 140 |
Notes Receivable [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes Receivable | $ 87 | |
Notes Receivable [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes Receivable | $ 140 |
Allowance for Credit Losses (Sc
Allowance for Credit Losses (Schedule of Impaired Loans) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Allowance for Credit Losses [Abstract] | |
Notes receivable, With no allowance recorded, Recorded investment | |
Notes receivable, With no allowance recorded, Unpaid principal balance | |
Notes receivable, With no allowance recorded, Average recorded investment | |
Notes receivable, With no allowance recorded, Interest income recognized | |
Notes receivable, With an allowance recorded, Recorded investment | 140 |
Notes receivable, With an allowance recorded, Unpaid Principal Balance | 15 |
Notes receivable, With an allowance recorded, Related Allowance | 15 |
Notes receivable, With an allowance recorded, Average recorded investment | 166 |
Notes receivable, With an allowance recorded, Interest income recognized | |
Recorded investment, Total | 140 |
Unpaid principal balance, Total | 15 |
Average recorded investment, Total | 166 |
Interest income recognized, Total |
Allowance for Credit Losses (Ne
Allowance for Credit Losses (Net Investment in Financing Receivables by Age) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Current | $ 91 | 159 |
Total financing receivables | 91 | 159 |
Recorded Investment > 90 Days and Accruing | ||
31-60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
61-90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Greater Than 90 Days [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 | 87 | 140 |
Total financing receivables | 87 | 140 |
Recorded Investment > 90 Days and Accruing | ||
Notes Receivable [Member] | 31-60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Notes Receivable [Member] | 61-90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Notes Receivable [Member] | Greater Than 90 Days [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 | 4 | 19 |
Total financing receivables | 4 | 19 |
Recorded Investment > 90 Days and Accruing | ||
Finance Leases [Member] | 31-60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Finance Leases [Member] | 61-90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Finance Leases [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due |
Investments in Equipment and _3
Investments in Equipment and Leases, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Investments in Equipment and Leases, Net [Abstract] | |||||
Depreciation of operating lease assets | $ 764 | $ 1,020 | $ 2,428 | $ 3,184 | |
Average estimated residual value of assets on operating leases | 38.00% | 38.00% | 38.00% | ||
Impairment losses on investment in securities | $ 17 | ||||
Impairment losses on equipment | 21 | ||||
Amortization of initial direct costs | $ 4 | $ 6 | $ 13 |
Investments in Equipment and _4
Investments in Equipment and Leases, Net (Investment in Leases) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Leases Disclosure [Line Items] | ||
Balance December 31, 2017 | $ 23,291 | |
Reclassifications, Improvements/ Dispositions and Impairment Losses | (300) | |
Depreciation/Amortization Expense or Amortization of Leases | (2,449) | |
Balance September 30, 2018 | 20,542 | |
Initial direct costs, accumulated amortization | 9 | $ 60 |
Operating Leases [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2017 | 22,612 | |
Reclassifications, Improvements/ Dispositions and Impairment Losses | (1,426) | |
Depreciation/Amortization Expense or Amortization of Leases | (2,428) | |
Balance September 30, 2018 | 18,758 | |
Direct Financing Leases [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2017 | 19 | |
Depreciation/Amortization Expense or Amortization of Leases | (15) | |
Balance September 30, 2018 | 4 | |
Assets Held for Sale or Lease, Net [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2017 | 652 | |
Reclassifications, Improvements/ Dispositions and Impairment Losses | 1,126 | |
Balance September 30, 2018 | 1,778 | |
Initial Direct Cost [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2017 | 8 | |
Depreciation/Amortization Expense or Amortization of Leases | (6) | |
Balance September 30, 2018 | $ 2 |
Investments in Equipment and _5
Investments in Equipment and Leases, Net (Property on Operating Leases) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 43,820 | $ 48,427 |
Less accumulated depreciation | (25,062) | (25,815) |
Property on operating leases, net | 18,758 | 22,612 |
Improvements, less accumulated depreciation | (2,428) | |
Addition, total | (2,428) | |
Reclassifications or dispositions, gross | (4,607) | |
Reclassifications or dispositions, less accumulated depreciation | 3,181 | |
Reclassifications or dispositions, Total | (1,426) | |
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 | 7,425 | 9,211 |
Reclassifications or dispositions, gross | (1,786) | |
Transportation [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 7,467 | 7,467 |
Reclassifications or dispositions, gross | ||
Manufacturing [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 6,317 | 6,595 |
Reclassifications or dispositions, gross | (278) | |
Research [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 2,250 | |
Reclassifications or dispositions, gross | (2,250) | |
Construction [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 1,057 | 1,264 |
Reclassifications or dispositions, gross | (207) | |
Materials Handling [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 1,399 | 1,485 |
Reclassifications or dispositions, gross | (86) | |
Agriculture [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 542 | 542 |
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 | ||
Other [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 83 | $ 83 |
Reclassifications or dispositions, gross |
Investments in Equipment and _6
Investments in Equipment and Leases, Net (Components of Company's Investment in Direct Financing Leases) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investments in Equipment and Leases, Net [Abstract] | ||
Total minimum lease payments receivable | $ 2 | $ 22 |
Estimated residual values of leased equipment (unguaranteed) | 2 | 1 |
Investment in direct financing leases | 4 | 23 |
Less unearned income | (4) | |
Net investment in direct financing leases | $ 4 | $ 19 |
Investments in Equipment and _7
Investments in Equipment and Leases, Net (Future Minimum Lease Payments Receivable) (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Operating Leases | |
Three months ending December 31, 2018 | $ 1,027 |
Year ending December 31, 2019 | 1,519 |
2,020 | 342 |
2,021 | 78 |
2,022 | 24 |
2,023 | 12 |
Operating leases, future minimum payments receivable, total | 3,002 |
Direct Financing Leases | |
Three months ending December 31, 2018 | 2 |
Direct financing leases, future minimum payments receivable, total | 2 |
Total | |
Three months ending December 31, 2018 | 1,029 |
Year ending December 31, 2019 | 1,519 |
2,020 | 342 |
2,021 | 78 |
2,022 | 24 |
2,023 | 12 |
Operating and direct financing leases, future minimum payments receivable, total | $ 3,004 |
Investments in Equipment and _8
Investments in Equipment and Leases, Net (Schedule of Useful Lives of Lease Assets) (Details) | 9 Months Ended |
Sep. 30, 2018 | |
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] | 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 |
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] | 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 |
Related Party Transactions (Man
Related Party Transactions (Managing Member and/or Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Related Party Transactions [Abstract] | ||||
Administrative costs reimbursed to Managing Member and/or affiliates | $ 140 | $ 178 | $ 561 | $ 587 |
Asset management fees to Managing Member | 67 | 94 | 215 | 273 |
Related party transaction, total | $ 207 | $ 272 | $ 776 | $ 860 |
Non-Recourse Debt (Narrative) (
Non-Recourse Debt (Narrative) (Details) - Non-Recourse Debt [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Debt Instrument [Line Items] | |
Gross operating lease rentals and future payments on direct financing leases | $ 1.8 |
Carrying value of pledged assets | $ 12.3 |
Note maturity date, description | The notes mature at various dates from 2018 through 2019. |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Fixed interest rate on note | 2.23% |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Fixed interest rate on note | 2.80% |
Non-Recourse Debt (Future Minim
Non-Recourse Debt (Future Minimum Payments of Non-Recourse Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Principal | ||
Secured debt, total | $ 1,777 | $ 4,229 |
Non-Recourse Debt [Member] | ||
Principal | ||
Three months ending December 31, 2018 | 781 | |
Year ending December 31, 2019 | 996 | |
Secured debt, total | 1,777 | |
Interest | ||
Three months ending December 31, 2018 | 10 | |
Year ending December 31, 2019 | 8 | |
Long-term debt interest, total | 18 | |
Total | ||
Three months ending December 31, 2018 | 791 | |
Year ending December 31, 2019 | 1,004 | |
Long-term debt principal and interest, total | $ 1,795 |
Senior Long-Term Debt (Narrativ
Senior Long-Term Debt (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,068 | $ 2,068 |
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 | 9 Months Ended | |
Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Line of Credit Facility [Line Items] | ||
Maximum amount of Credit Facility | $ 75,000 | $ 75,000 |
Credit facility, expiration date | Sep. 30, 2019 | |
Tangible net worth required under the Credit Facility | $ 10,000 | |
Outstanding borrowings under facility | $ 1,200 | $ 1,950 |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Leverage ratio | 1.25 | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest coverage ratio | 2 | |
Covenant Requirement [Member] | ||
Line of Credit Facility [Line Items] | ||
Leverage ratio | 0.31 | |
Interest coverage ratio | 21.16 | |
Net worth | $ 16,100 |
Borrowings Facilities (Borrowin
Borrowings Facilities (Borrowings Under Facility) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Borrowing Facilities [Abstract] | ||
Total available under the financing arrangement | $ 75,000 | $ 75,000 |
Amount borrowed by the Company under the acquisition facility | (1,200) | (1,950) |
Amounts borrowed by affiliated partnerships and Limited Liability Companies under the venture, acquisition and warehouse facilities | (925) | (3,820) |
Total remaining available under the venture, acquisition and warehouse facilities | $ 72,875 | $ 69,230 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Commitments [Abstract] | |
Commitments to purchase lease assets | $ 0 |
Members' Capital (Narrative) (D
Members' Capital (Narrative) (Details) - shares | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Other Members Capital Account [Line Items] | |||
Members capital account, Units issued | 8,246,919 | ||
Members capital account, Units outstanding | 8,246,919 | ||
Managing Member [Member] | |||
Other Members Capital Account [Line Items] | |||
Members capital account, Units issued | 50 | 50 | |
Other Members [Member] | |||
Other Members Capital Account [Line Items] | |||
Members capital account, Units issued | 8,246,919 | 8,257,599 | |
Members capital account, Units outstanding | 8,246,919 | 8,257,599 | 8,316,662 |
Members capital account, Units authorized | 15,000,000 | 15,000,000 |
Members' Capital (Distributions
Members' Capital (Distributions to Other Members) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | |||||
Distributions declared | $ 5 | $ 7,423 | |||
Weighted average number of Units outstanding | 8,246,919 | 8,281,477 | 8,249,089 | 8,295,717 | |
Weighted average distributions per Unit | $ 0.90 | ||||
Other Members [Member] | |||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | |||||
Distributions declared | $ 1,848 | $ 5 | $ 5,566 | $ 7,423 | |
Weighted average number of Units outstanding | 8,246,919 | 8,281,477 | 8,249,089 | 8,295,717 | |
Weighted average distributions per Unit | $ 0 | $ 0.22 | $ 0 | $ 0.67 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value Measurements [Abstract] | ||||||
Impairment losses on investment in securities | $ 17 | |||||
Warrants, fair value | $ 252 | $ 245 | $ 242 | $ 232 | $ 246 | $ 247 |
Fair value adjustments which reduced the cost basis of assets | $ 21 |
Fair Value Measurements (Warran
Fair Value Measurements (Warrants on a Recurring Basis and Classified as Level 3 Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Fair Value Measurements [Abstract] | ||||
Fair value of warrants at beginning of period | $ 242 | $ 246 | $ 232 | $ 247 |
Unrealized (loss) gain on fair value adjustment for warrants | 10 | (1) | 20 | (2) |
Fair value of warrants at end of period | $ 252 | $ 245 | $ 252 | $ 245 |
Fair Value Measurements (Invest
Fair Value Measurements (Investment Securities on a Recurring Basis and Classified as Level 1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Fair Value Measurements [Abstract] | ||
Fair value of warrants at beginning of period | $ 41 | $ 21 |
Unrealized (loss) gain on fair value adjustment for marketable securities | (8) | 12 |
Fair value of warrants at end of period | $ 33 | $ 33 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Valuation Techniques and Significant Unobservable Inputs Used) (Details) - Level 3 Estimated Fair Value [Member] - Recurring [Member] - Warrant [Member] - Black-Scholes Model [Member] - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Stock price | $ 0 | $ 0 |
Exercise price | $ 0.10 | $ 0.01 |
Time to maturity (in years) | 1 year 10 months 13 days | 2 years 7 months 13 days |
Risk-free interest rate | 2.77% | 1.94% |
Annualized volatility | 49.57% | 52.08% |
Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Stock price | $ 32.07 | $ 14.75 |
Exercise price | $ 1,000 | $ 1,000 |
Time to maturity (in years) | 7 years 3 months 29 days | 8 years 29 days |
Risk-free interest rate | 3.01% | 2.36% |
Annualized volatility | 88.72% | 84.08% |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Financial assets: | ||||||
Warrants, fair value | $ 252 | $ 242 | $ 232 | $ 245 | $ 246 | $ 247 |
Carrying Amount [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 720 | 1,266 | ||||
Investment in securities | 33 | |||||
Warrants, fair value | 252 | 232 | ||||
Financial liabilities: | ||||||
Non-recourse debt | 1,777 | 4,229 | ||||
Senior long-term debt | 2,068 | 2,068 | ||||
Credit facility | 1,200 | 1,950 | ||||
Estimated Fair Value [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 720 | 1,266 | ||||
Investment in securities | 33 | |||||
Warrants, fair value | 252 | 232 | ||||
Financial liabilities: | ||||||
Non-recourse debt | 1,769 | 4,218 | ||||
Senior long-term debt | 2,432 | 2,379 | ||||
Credit facility | 1,200 | 1,950 | ||||
Estimated Fair Value [Member] | Level 1 Estimated Fair Value [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 720 | 1,266 | ||||
Investment in securities | 33 | |||||
Estimated Fair Value [Member] | Level 2 Estimated Fair Value [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | ||||||
Investment in securities | ||||||
Warrants, fair value | ||||||
Financial liabilities: | ||||||
Non-recourse debt | ||||||
Senior long-term debt | ||||||
Credit facility | ||||||
Estimated Fair Value [Member] | Level 3 Estimated Fair Value [Member] | ||||||
Financial assets: | ||||||
Warrants, fair value | 252 | 232 | ||||
Financial liabilities: | ||||||
Non-recourse debt | 1,769 | 4,218 | ||||
Senior long-term debt | 2,432 | 2,379 | ||||
Credit facility | $ 1,200 | $ 1,950 |