RESERVES FOR CREDIT LOSSES

3 Months Ended

Jun. 30, 2011

RESERVES FOR CREDIT LOSSES [Abstract]

RESERVES FOR CREDIT LOSSES

4. RESERVES FOR CREDIT LOSSES

Activity in our reserves for credit losses for the three months ended June 30, 2011 and 2010 were as follows (in thousands):

	Accounts & Notes Receivable			Lease-Related Assets			Total
Balance April 1, 2011	$	1,038		$	1,733		$	2,771
Provision for bad debts		103			64			167
Write-offs and other		(222	)		(2	)		(224	)
Balance June 30, 2011	$	919		$	1,795		$	2,714
	Accounts & Notes Receivable			Lease-Related Assets			Total
Balance April 1, 2010	$	1,655		$	1,930		$	3,585
Provision for bad debts		(149	)		207			58
Recoveries		5			-			5
Write-offs and other		(85	)		-			(85	)
Balance June 30, 2010	$	1,426		$	2,137		$	3,563

11

Our reserve for credit losses and minimum lease payments associated with our investment in direct financing and sales- type lease balances disaggregated on the basis of our impairment method were as follows (in thousands):

	June 30,		March 31,
	2011
Reserve for credit losses:
Ending balance: collectively evaluated for impairment	$	1,795	$	1,733
Ending balance: individually evaluated for impairment (1)		-		-
Ending balance	$	1,795	$	1,733
Minimum lease payments:
Ending balance: collectively evaluated for impairment	$	106,455	$	102,446
Ending balance: individually evaluated for impairment (1)		-		3
Ending balance	$	106,455	$	102,449

(1)   The net credit exposure for the balance evaluated individually for impairment as of March 31, 2011 was $3 thousand.  

As of June 30, 2011, the age of the recorded minimum lease payments and net credit exposure associated with our investment in direct financing and sales-type leases that are past due, disaggregated based on our internally assigned credit quality ratings (“CQR”), were as follows (in thousands):

	31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Unbilled Minimum Lease Payments		Total Minimum Lease Payments		Unearned Income			Non-Recourse Notes Payable			Net Credit Exposure
June 30, 2011
High CQR	$	5	$	-	$	25	$	30	$	196	$	65,229	$	65,455	$	(4,963	)	$	(6,950	)	$	53,542
Average CQR		7		12		47		66		57		40,877		41,000		(5,764	)		(8,523	)		26,713
Low CQR		-		-		-		-		-		-		-		-			-			-
Total	$	12	$	12	$	72	$	96	$	253	$	106,106	$	106,455	$	(10,727	)	$	(15,473	)	$	80,255
March 31, 2011
High CQR	$	1,495	$	188	$	401	$	2,084	$	296	$	58,962	$	61,342	$	(5,031	)	$	(6,658	)	$	49,653
Average CQR		26		134		18		178		767		40,159		41,104		(6,293	)		(9,984	)		24,828
Low CQR		-		-		3		3		-		-		3		-			-			3
Total	$	1,521	$	322	$	422	$	2,265	$	1,063	$	99,121	$	102,449	$	(11,323	)	$	(16,642	)	$	74,484

We estimate losses on our net credit exposure to be between 0%-5% for customers with highest CQR, as these customers are investment grade or the equivalent of investment grade. We estimate losses on our net credit exposure to be between 2%-25% for customers with average CQR, and between 50%-100% for customers with low CQR, which includes customers in bankruptcy.