RESERVES FOR CREDIT LOSSES

6 Months Ended

Sep. 30, 2014

RESERVES FOR CREDIT LOSSES [Abstract]

RESERVES FOR CREDIT LOSSES

4. RESERVES FOR CREDIT LOSSES

Activity in our reserves for credit losses for the six months ended September 30, 2014 and 2013 were as follows (in thousands):

	Accounts Receivable			Notes Receivable			Lease-Related Receivables			Total
Balance April 1, 2014	$	1,364		$	3,364		$	1,024		$	5,752
Provision for credit losses		(99	)		309			11			221
Write-offs and other		(122	)		-			(31	)		(153	)
Balance September 30, 2014	$	1,143		$	3,673		$	1,004		$	5,820
	Accounts Receivable			Notes Receivable			Lease-Related Receivables			Total
Balance April 1, 2013	$	1,147		$	3,137		$	845		$	5,129
Provision for credit losses		152			(14	)		53			191
Write-offs and other		(121	)		-			-			(121	)
Balance September 30, 2013	$	1,178		$	3,123		$	898		$	5,199

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):

	September 30, 2014				March 31, 2014
	Notes Receivable		Lease-Related Receivables		Notes Receivable		Lease-Related Receivables
Reserves for credit losses:
Ending balance: collectively evaluated for impairment	$	552	$	788	$	265	$	852
Ending balance: individually evaluated for impairment		3,121		216		3,099		172
Ending balance	$	3,673	$	1,004	$	3,364	$	1,024
Minimum payments:
Ending balance: collectively evaluated for impairment	$	56,292	$	86,086	$	39,869	$	81,114
Ending balance: individually evaluated for impairment		3,453		203		3,838		437
Ending balance	$	59,745	$	86,289	$	43,707	$	81,551

The net credit exposure for the notes receivable and lease related receivables evaluated individually for impairment as of September 30, 2014 was $3.6 million. As of September 30, 2014, we had $3.2 million of notes and lease-related receivables from one customer that filed for bankruptcy in May, 2012 and total reserves for credit losses of $3.2 million, which represents our estimated probable loss. As of March 31, 2014, we had $3.4 million of notes receivables from this customer and total reserves for credit losses of $3.1 million. 

As of September 30, 2014, 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
September 30, 2014
High CQR	$	42	$	5	$	130	$	177	$	232	$	51,342	$	51,751	$	(2,828	)	$	(18,031	)	$	30,892
Average CQR		52		48		14		114		566		33,654		34,335		(2,704	)		(17,742	)		13,888
Low CQR		-		-		-		-		-		203		203		(19	)		-			184
Total		94		53		144		291		798		85,199		86,289		(5,551	)		(35,773	)		44,964
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

As of September 30, 2014, 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
September 30, 2014
High CQR	$	829	$	5	$	1,802	$	2,636	$	521	$	38,137	$	41,294	$	(23,463	)	$	17,831
Average CQR		171		-		-		171		281		14,546		14,998		(4,580	)		10,418
Low CQR		-		-		707		707		-		2,746		3,453		-			3,453
Total		1,000		5		2,509		3,514		802		55,429		59,745		(28,043	)		31,702
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

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