RESERVES FOR CREDIT LOSSES

9 Months Ended

Dec. 31, 2013

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, 2013 and 2012 were as follows (in thousands):

	Accounts Receivable			Notes Receivable			Lease-Related Receivables			Total
Balance April 1, 2013	$	1,147		$	3,137		$	845		$	5,129
Provision for bad debts		44			(57	)		140			127
Write-offs, net of recoveries		(17	)		-			-			(17	)
Balance December 31, 2013	$	1,174		$	3,080		$	985		$	5,239
	Accounts Receivable			Notes Receivable			Lease-Related Receivables			Total
Balance April 1, 2012	$	1,307		$	2,963		$	1,336		$	5,606
Provision for bad debts		(118	)		189			(328	)		(257	)
Write-offs, net of recoveries		(97	)		-			(3	)		(100	)
Balance December 31, 2012	$	1,092		$	3,152		$	1,005		$	5,249

Our reserves for credit losses and minimum payments associated with our notes receivables and lease-related receivables disaggregated on the basis of our impairment method were as follows (in thousands):

	December 31, 2013				March 31, 2013
	Notes Receivable		Lease-Related Receivables		Notes Receivable		Lease-Related Receivables
Reserves for credit losses:
Ending balance: collectively evaluated for impairment	$	254	$	883	$	310	$	747
Ending balance: individually evaluated for impairment		2,826		102		2,827		98
Ending balance	$	3,080	$	985	$	3,137	$	845
Minimum payments:
Ending balance: collectively evaluated for impairment	$	43,155	$	71,560	$	31,793	$	64,246
Ending balance: individually evaluated for impairment		3,237		370		3,237		368
Ending balance	$	46,392	$	71,930	$	35,030	$	64,614

As of December 31, 2013, we had $3.3 million of receivables from a specific customer in bankruptcy and total reserves for credit losses of $2.8 million, which represented our estimated probable loss. As of March 31, 2013, we had $3.4 million of receivables from this customer and total reserves for credit losses of $2.8 million.

As of December 31, 2013, 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, 2013
High CQR	$	84	$	638	$	166	$	888	$	317	$	40,554	$	41,759	$	(1,903	)	$	(10,748	)	$	29,108
Average CQR		82		27		25		134		302		29,365		29,801		(1,942	)		(12,269	)		15,590
Low CQR		-		-		61		61		-		309		370		(43	)		-			327
Total		166		665		252		1,083		619		70,228		71,930		(3,888	)		(23,017	)		45,025
March 31, 2013
High CQR	$	454	$	316	$	28	$	798	$	322	$	38,278	$	39,398	$	(2,777	)	$	(10,337	)	$	26,284
Average CQR		51		51		5		107		101		24,640		24,848		(1,596	)		(7,857	)		15,395
Low CQR		-		-		61		61		-		307		368		(39	)		-			329
Total		505		367		94		966		423		63,225		64,614		(4,412	)		(18,194	)		42,008

As of December 31, 2013, the age of 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 Notes Receivable		Non-Recourse Notes Payable			Net Credit Exposure
December 31, 2013
High CQR	$	-	$	770	$	45	$	815	$	907	$	36,354	$	38,076	$	(18,330	)	$	19,746
Average CQR		303		-		-		303		43		4,733		5,079		(3,011	)		2,068
Low CQR		-		-		791		791		-		2,446		3,237		-			3,237
Total	$	303	$	770	$	836	$	1,909	$	950	$	43,533	$	46,392	$	(21,341	)	$	25,051
March 31, 2013
High CQR	$	1,342	$	127	$	832	$	2,301	$	3,450	$	22,097	$	27,848	$	(5,621	)	$	22,227
Average CQR		1,379		-		-		1,379		-		2,566		3,945		(1,203	)		2,742
Low CQR		-		-		726		726		-		2,511		3,237		-			3,237
Total	$	2,721	$	127	$	1,558	$	4,406	$	3,450	$	27,174	$	35,030	$	(6,824	)	$	28,206

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.