FINANCING RECEIVABLES AND OPERATING LEASES

12 Months Ended

Mar. 31, 2014

FINANCING RECEIVABLES AND OPERATING LEASES [Abstract]

FINANCING RECEIVABLES AND OPERATING LEASES

2. FINANCING RECEIVABLES AND OPERATING LEASES

FINANCING RECEIVABLES—NET

Our financing receivables, net consist of the following (in thousands):

March 31, 2014	Notes Receivables			Lease-Related Receivables			Total Financing Receivables
Minimum payments	$	43,707		$	81,551		$	125,258
Estimated unguaranteed residual value (1)		-			8,275			8,275
Initial direct costs, net of amortization (2)		354			537			891
Unearned income		-			(6,285	)		(6,285	)
Reserve for credit losses (3)		(3,364	)		(1,024	)		(4,388	)
Total, net	$	40,697		$	83,054		$	123,751
Reported as:
Current	$	22,109		$	35,640		$	57,749
Long-term		18,588			47,414			66,002
Total, net	$	40,697		$	83,054		$	123,751

(1) Includes estimated unguaranteed residual values of $3,034 thousand 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 $525 thousand.

(3) For details on reserve for credit losses, refer to Note 4, “Reserves for Credit Losses.”

March 31, 2013	Notes Receivables			Lease-Related Receivables			Total Financing Receivables
Minimum payments	$	35,030		$	64,614		$	99,644
Estimated unguaranteed residual value (1)		-			7,557			7,557
Initial direct costs, net of amortization (2)		-			684			684
Unearned income		-			(5,767	)		(5,767	)
Reserve for credit losses (3)		(3,137	)		(845	)		(3,982	)
Total, net	$	31,893		$	66,243		$	98,136
Reported as:
Current	$	18,650		$	27,421		$	46,071
Long-term		13,243			38,822			52,065
Total, net	$	31,893		$	66,243		$	98,136

(1) Includes estimated unguaranteed residual values of $3,361 thousand 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 $479 thousand.

(3) For details on reserve for credit losses, refer to Note 4, “Reserves for Credit Losses.”

Future scheduled minimum lease payments for investments in direct financing and sales-type leases as of March 31, 2014 are as follows (in thousands):

Year ending March 31, 2015	$	38,536
2016		26,495
2017		13,790
2018		2,513
2019 and thereafter		217
Total	$	81,551

OPERATING LEASES—NET

Operating leases—net primarily represents leases that do not qualify as direct financing leases. The components of the operating leases—net are as follows (in thousands):

	March 31,
	2014			2013
Cost of equipment under operating leases	$	40,513		$	46,106
Accumulated depreciation		(20,525	)		(21,639	)
Investment in operating lease equipment—net (1)	$	19,988		$	24,467

(1) Includes estimated unguaranteed residual values of $5,610 thousand and $7,763 thousand as of March 31, 2014 and 2013, respectively.

Future scheduled minimum lease rental payments as of March 31, 2014 are as follows (in thousands):

Year ending March 31, 2015	$	8,932
2016		4,483
2017		1,179
2018		514
2019 and thereafter		434
Total	$	15,542

TRANSFERS OF FINANCIAL ASSETS

We enter into arrangements to transfer the contractual payments due under financing receivables and operating lease agreements, which are accounted for as sales or secured borrowings in accordance with Codification Topic, Transfers and Servicing. For transfers accounted for as a secured borrowing, the corresponding investments serve as collateral for non-recourse notes payable. As of March 31, 2014 and 2013, we had financing receivables and operating leases of $72.3 million and $46.9 million, respectively that were collateral for non-recourse notes payable. See Note 6, "Notes Payable and Credit Facility."

For transfers accounted for as sales, we derecognize the carrying value of the asset transferred and recognize a net gain or loss on the sale, which are presented within financing revenues in the consolidated statement of operations. For the years ended March 31, 2014, 2013, and 2012, we recognized net gains of $8.5 million, $7.1 million, and $3.9 million, respectively, and total proceeds from these sales were $187.2 million $142.3 million, and $62.4 million, respectively.