INVESTMENT IN LEASES AND LEASED EQUIPMENT-NET

12 Months Ended

Mar. 31, 2012

INVESTMENT IN LEASES AND LEASED EQUIPMENT-NET [Abstract]

INVESTMENT IN LEASES AND LEASED EQUIPMENT-NET

3. INVESTMENTS IN LEASES AND LEASED EQUIPMENT-NET

Our investment in leases and leased equipment-net consists of the following (in thousands):

	March 31,
	2012		2011
Investment in direct financing and sales-type leases-net	$	95,460	$	95,678
Investment in operating lease equipment-net		20,514		21,989
	$	115,974	$	117,667

INVESTMENT IN DIRECT FINANCING AND SALES-TYPE LEASES-NET

Our investment in direct financing and sales-type leases-net consists of the following (in thousands):

	March 31,
	2012			2011
Minimum lease payments	$	99,747		$	102,449
Estimated unguaranteed residual value (1)		6,917			7,029
Initial direct costs, net of amortization (2)		797			709
Less: Unearned lease income		(10,665	)		(12,776	)
Less: Reserve for credit losses (3)		(1,336	)		(1,733	)
Investment in direct financing and sales-type leases-net	$	95,460		$	95,678

(1) Includes estimated unguaranteed residual values of $1,700 thousand and $1,666 thousand as of March 31, 2012 and 2011, respectively, for direct financing leases which have been sold and accounted for as sales under Codification Topic Transfers and Servicing.

(2) Initial direct costs are shown net of amortization of $512 thousand and $552 thousand as of March 31, 2012 and 2011, respectively.

(3) For details on reserve for credit losses, refer to Note 5, "Reserves for Credit Losses."

Future scheduled minimum lease rental payments as of March 31, 2012 are as follows (in thousands):

Year ending March 31, 2013	$	46,608
2014		29,985
2015		15,761
2016		5,532
2017 and thereafter		1,861
Total	$	99,747

Our net investment in direct financing and sales-type leases for certain lease agreements serves as collateral for non-recourse and recourse equipment notes. See Note 9, "Recourse and Non-Recourse Notes Payable."

We enter into agreements to sell the financing receivables associated with certain notes receivables and investments in direct financing leases, which are accounted for as sales under Codification Topic, Transfer and Servicing. We recognized a net gain for these sales of $3.9 million, $2.2 million and $1.9 million in financing revenues in the consolidated statement of operations for the years ended March 31, 2012, 2011 and 2010, respectively. Total proceeds from the sale of financing payments were $62.4 million, $63.6 million and $62.3 million for the years ended March 31, 2012, 2011, and 2010, respectively.

INVESTMENT IN OPERATING LEASE EQUIPMENT-NET

Investment in operating lease equipment-net primarily represents leases that do not qualify as direct financing leases. The components of the investment in operating lease equipment-net are as follows (in thousands):

	March 31,
	2012			2011
Cost of equipment under operating leases	$	44,487		$	44,105
Less: Accumulated depreciation and amortization		(23,973	)		(22,116	)
Investment in operating lease equipment-net (1)	$	20,514		$	21,989

(1) Includes estimated unguaranteed residual values of $7,802 thousand and $8,346 thousand as of March 31, 2012 and 2011, respectively.

Future scheduled minimum lease rental payments as of March 31, 2012 are as follows (in thousands):

Year ending March 31,2013	$	7,749
2014		5,504
2015		2,022
2016		485
2017 and thereafter		36
Total	$	15,796