RESERVES FOR CREDIT LOSSES

9 Months Ended

Dec. 31, 2011

RESERVES FOR CREDIT LOSSES [Abstract]

RESERVES FOR CREDIT LOSSES

4. RESERVES FOR CREDIT LOSSES

Activity in our reserves for credit losses for the nine months ended December 31, 2011 and 2010 was as follows (in thousands):

	Accounts Receivable			Notes Receivable			Lease-Related Assets			Total
Balance April 1, 2011	$	944		$	94		$	1,733		$	2,771
Provision for (reduction of) bad debts		385			152			(109	)		428
Recoveries		2			-			-			2
Write-offs and other		(262	)		-			(2	)		(264	)
Balance December 31, 2011	$	1,069		$	246		$	1,622		$	2,937
	Accounts Receivable			Notes Receivable			Lease-Related Assets			Total
Balance April 1, 2010	$	1,580		$	75		$	1,930		$	3,585
Provision for (reduction of) bad debts		(261	)		(69	)		198			(132	)
Recoveries		12			-			-			12
Write-offs and other		(371	)		-			(525	)		(896	)
Balance December 31, 2010	$	960		$	6		$	1,603		$	2,569

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

	December 31, 2011				March 31, 2011
	Notes Receivable		Lease-Related Assets		Notes Receivable		Lease-Related Assets
Reserve for credit losses:
Ending balance: collectively evaluated for impairment	$	246	$	1,622	$	94	$	1,733
Ending balance: individually evaluated for impairment		-		-		-		-
Ending balance	$	246	$	1,622	$	94	$	1,733
Total receivables:
Ending balance: collectively evaluated for impairment	$	6,323	$	102,965	$	5,937	$	102,446
Ending balance: individually evaluated for impairment (1)		-		-		-		3
Ending balance	$	6,323	$	102,965	$	5,937	$	102,449

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

12

As of December 31, 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
December 31, 2011
High CQR	$	107	$	1	$	229	$	337	$	992	$	62,739	$	64,068	$	(5,091	)	$	(1,763	)	$	57,214
Average CQR		125		7		36		168		244		38,083		38,495		(4,745	)		(10,768	)		22,982
Low CQR		-		-		-		-		-		402		402		(12	)		-			390
Total	$	232	$	8	$	265	$	505	$	1,236	$	101,224	$	102,965	$	(9,848	)	$	(12,531	)	$	80,586
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		(6,292	)		(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

As of December 31, 2011, the recorded notes receivable balance disaggregated based on our internally assigned 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 Notes Receivable		Total
December 31, 2011
High CQR	$	315	$	-	$	-	$	315	$	167	$	2,873	$	3,355
Average CQR		-		-		220		220		69		2,592		2,881
Low CQR		-		-		-		-		-		-		-
Total	$	315	$	-	$	220	$	535	$	236	$	5,465	$	6,236
March 31, 2011
High CQR	$	-	$	-	$	-	$	-	$	-	$	4,119	$	4,119
Average CQR		-		145		-		145		70		1,603		1,818
Low CQR		-		-		-		-		-		-		-
Total	$	-	$	145	$	-	$	145	$	70	$	5,722	$	5,937

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.