4. RESERVES FOR CREDIT LOSSES

Activity in our reserves for credit losses for the years ended March 31, 2014, 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 credit losses		344			227		179		750
Write-offs and other		(127	)		-		-		(127	)
Balance March 31, 2014	$	1,364		$	3,364	$	1,024	$	5,752

	Accounts Receivable			Notes Receivable		Lease-Related Receivables			Total
Balance April 1, 2012	$	1,307		$	2,963	$	1,336		$	5,606
Provision for credit losses		(19	)		174		(488	)		(333	)
Write-offs and other		(141	)		-		(3	)		(144	)
Balance March 31, 2013	$	1,147		$	3,137	$	845		$	5,129

	Accounts Receivable			Notes Receivable		Lease-Related Receivables			Total
Balance April 1, 2011	$	944		$	94	$	1,733		$	2,771
Provision for credit losses		739			2,869		(395	)		3,213
Write-offs and other		(376	)		-		(2	)		(378	)
Balance March 31, 2012	$	1,307		$	2,963	$	1,336		$	5,606

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):

	March 31, 2014				March 31, 2013
	Notes Receivable		Lease-Related Receivables		Notes Receivable		Lease-Related Receivables
Reserves for credit losses:
Ending balance: collectively evaluated for impairment	$	265	$	852	$	310	$	747
Ending balance: individually evaluated for impairment		3,099		172		2,827		98
Ending balance	$	3,364	$	1,024	$	3,137	$	845

Minimum payments:
Ending balance: collectively evaluated for impairment	$	39,869	$	81,114	$	31,793	$	64,246
Ending balance: individually evaluated for impairment		3,838		437		3,237		368
Ending balance	$	43,707	$	81,551	$	35,030	$	64,614

The net credit exposure for the balance evaluated individually for impairment as of March 31, 2014 was $4.2 million, $3.3 million of which is related to one customer. During fiscal year 2012, we began selling and financing various products and services to a large law firm, which filed for bankruptcy in May 2012. As of March 31, 2014, we had $3.4 million of notes and lease-related receivables from this customer and total reserves for credit losses of $3.1 million, which represented our estimated probable loss. As of March 31, 2013, we had $3.4 million of notes receivables from this customer and total reserves for credit losses of $2.8 million.

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 rating (“CQR”) were as follows as of March 31, 2014 and 2013 (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

March 31, 2014

High CQR	$	194	$	35	$	106	$	335	$	502	$	42,159	$	42,996	$	(1,890	)	$	(17,406	)	$	23,700
Average CQR		33		57		18		108		86		37,924		38,118		(3,401	)		(20,709	)		14,008
Low CQR		-		-		61		61		-		376		437		(55	)		-			382
Total		227		92		185		504		588		80,459		81,551		(5,346	)		(38,115	)		38,090

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

The age of the recorded notes receivable balance disaggregated based on our internally assigned CQR were as follows as March 31, 2014 and 2013 (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

March 31, 2014

High CQR	$	-	$	205	$	148	$	353	$	2,317	$	30,249	$	32,919	$	(19,641	)	$	13,278
Average CQR		-		-		-		-		-		6,950		6,950		(3,491	)		3,459
Low CQR		-		-		791		791		-		3,047		3,838		-			3,838
Total	$	-	$	205	$	939	$	1,144	$	2,317	$	40,246	$	43,707	$	(23,132	)	$	20,575

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 high 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 25% - 100% for customers with low CQR, which includes customers in bankruptcy.