4.	RESERVES FOR CREDIT LOSSES

Activity in our reserves for credit losses for the six months ended September 30, 2015 and 2014 were as follows (in thousands):

	Accounts Receivable			Notes Receivable		Lease-Related Receivables			Total
Balance April 1, 2015	$	1,169		$	3,573	$	881		$	5,623
Provision for credit losses		46			11		(33	)		24
Write-offs and other		(119	)		-		-			(119	)
Balance September 30, 2015	$	1,096		$	3,584	$	848		$	5,528

	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

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, 2015				March 31, 2015
	Notes Receivable		Lease- Related Receivables		Notes Receivable		Lease- Related Receivables
Reserves for credit losses:
Ending balance: collectively evaluated for impairment	$	384	$	725	$	440	$	740
Ending balance: individually evaluated for impairment		3,200		123		3,133		141
Ending balance	$	3,584	$	848	$	3,573	$	881

Minimum payments:
Ending balance: collectively evaluated for impairment	$	58,035	$	67,096	$	56,525	$	66,255
Ending balance: individually evaluated for impairment		3,520		142		3,418		160
Ending balance	$	61,555	$	67,238	$	59,943	$	66,415

The net credit exposure for the balance evaluated individually for impairment as of September 30, 2015 was $3.7 million, $3.2 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 September 30, 2015, we had $3.2 million of notes and lease-related receivables from this customer and total reserves for credit losses of $3.2 million, which represented our estimated probable loss. As of March 31, 2015, we had $3.2 million of notes and lease-related receivables from this customer and total reserves for credit losses of $3.2 million. The note and lease receivables associated with this customer are on non-accrual status.

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 September 30, 2015 and March 31, 2015 (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, 2015

High CQR	$	131	$	83	$	186	$	400	$	193	$	47,143	$	47,736	$	(2,744	)	$	(10,664	)	$	34,328
Average CQR		3		-		102		105		64		19,191		19,360		(1,454	)		(6,077	)		11,829
Low CQR		-		-		142		142		-		-		142		(19	)		-			123
Total	$	134	$	83	$	430	$	647	$	257	$	66,334	$	67,238	$	(4,217	)	$	(16,741	)	$	46,280

March 31, 2015

High CQR	$	70	$	185	$	133	$	388	$	430	$	41,213	$	42,031	$	(2,340	)	$	(16,561	)	$	23,130
Average CQR		15		68		19		102		75		24,047		24,224		(1,742	)		(9,397	)		13,085
Low CQR		-		-		-		-		-		160		160		(19	)		-			141
Total	$	85	$	253	$	152	$	490	$	505	$	65,420	$	66,415	$	(4,101	)	$	(25,958	)	$	36,356

The age of the recorded notes receivable balance disaggregated based on our internally assigned CQR were as follows as September 30, 2015 and March 31, 2015 (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, 2015

High CQR	$	-	$	5	$	174	$	179	$	34	$	44,843	$	45,056	$	(25,890	)	$	19,166
Average CQR		6		6		118		130		202		12,647		12,979		(7,763	)		5,216
Low CQR		-		-		3,520		3,520		-		-		3,520		-			3,520
Total	$	6	$	11	$	3,812	$	3,829	$	236	$	57,490	$	61,555	$	(33,653	)	$	27,902

March 31, 2015

High CQR	$	338	$	260	$	161	$	759	$	2,455	$	35,996	$	39,210	$	(18,255	)	$	20,955
Average CQR		57		-		-		57		376		16,882		17,315		(11,665	)		5,650
Low CQR		-		-		656		656		-		2,762		3,418		-			3,418
Total	$	395	$	260	$	817	$	1,472	$	2,831	$	55,640	$	59,943	$	(29,920	)	$	30,023

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% - 15% for customers with average CQR, and between 15% - 100% for customers with low CQR, which includes customers in bankruptcy.