RESERVES FOR CREDIT LOSSES

12 Months Ended

Mar. 31, 2017

RESERVES FOR CREDIT LOSSES [Abstract]

RESERVES FOR CREDIT LOSSES

5. RESERVES FOR CREDIT LOSSES

Activity in our reserves for credit losses for the years ended March 31, 2017, 2016 and 2015 were as follows (in thousands):

	Accounts Receivable			Notes Receivable			Lease-Related Receivables			Total
Balance April 1, 2016	$	1,127		$	3,381		$	685		$	5,193
Provision for credit losses		216			65			(4	)		277
Write-offs and other		(64	)		(12	)		(2	)		(78	)
Balance March 31, 2017	$	1,279		$	3,434		$	679		$	5,392
	Accounts Receivable			Notes Receivable			Lease-Related Receivables			Total
Balance April 1, 2015	$	1,169		$	3,573		$	881		$	5,623
Provision for credit losses		126			(172	)		(196	)		(242	)
Write-offs and other		(168	)		(20	)		-			(188	)
Balance March 31, 2016	$	1,127		$	3,381		$	685		$	5,193
	Accounts Receivable			Notes Receivable			Lease-Related Receivables			Total
Balance April 1, 2014	$	1,364		$	3,364		$	1,024		$	5,752
Provision for credit losses		28			209			(112	)		125
Write-offs and other		(223	)		-			(31	)		(254	)
Balance March 31, 2015	$	1,169		$	3,573		$	881		$	5,623

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, 2017				March 31, 2016
	Notes Receivable		Lease- Related Receivables		Notes Receivable		Lease- Related Receivables
Reserves for credit losses:
Ending balance: collectively evaluated for impairment	$	348	$	556	$	279	$	562
Ending balance: individually evaluated for impairment		3,086		123		3,102		123
Ending balance	$	3,434	$	679	$	3,381	$	685
Minimum payments:
Ending balance: collectively evaluated for impairment	$	45,438	$	57,730	$	41,340	$	66,161
Ending balance: individually evaluated for impairment		3,086		142		3,102		142
Ending balance	$	48,524	$	57,872	$	44,442	$	66,303

The net credit exposure for the balance evaluated individually for impairment as of March 31, 2017 was $3.2 million, which is related to a customer in bankruptcy. 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 March 31, 2017 and 2016 (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, 2017
High CQR	$	379	$	224	$	230	$	833	$	406	$	32,532	$	33,771	$	(2,362	)	$	(12,924	)	$	18,485
Average CQR		113		20		113		246		91		23,622		23,959		(1,556	)		(13,353	)		9,050
Low CQR		-		-		142		142		-		-		142		(19	)		-			123
Total	$	492	$	244	$	485	$	1,221	$	497	$	56,154	$	57,872	$	(3,937	)	$	(26,277	)	$	27,658
March 31, 2016
High CQR	$	575	$	52	$	94	$	721	$	984	$	46,157	$	47,862	$	(2,705	)	$	(22,914	)	$	22,243
Average CQR		15		17		78		110		159		18,030		18,299		(1,387	)		(8,714	)		8,198
Low CQR		-		-		142		142		-		-		142		(19	)		-			123
Total	$	590	$	69	$	314	$	973	$	1,143	$	64,187	$	66,303	$	(4,111	)	$	(31,628	)	$	30,564

The age of the recorded notes receivable balance disaggregated based on our internally assigned CQR were as follows as March 31, 2017 and 2016 (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, 2017
High CQR	$	183	$	663	$	755	$	1,601	$	1,165	$	23,359	$	26,125	$	(12,003	)	$	14,122
Average CQR		28		5		-		33		555		18,725		19,313		(13,732	)		5,581
Low CQR		-		-		3,086		3,086		-		-		3,086		-			3,086
Total	$	211	$	668	$	3,841	$	4,720	$	1,720	$	42,084	$	48,524	$	(25,735	)	$	22,789
March 31, 2016
High CQR	$	399	$	305	$	2,168	$	2,872	$	301	$	24,092	$	27,265	$	(11,644	)	$	15,621
Average CQR		-		-		-		-		202		13,873		14,075		(9,942	)		4,133
Low CQR		-		-		3,102		3,102		-		-		3,102		-			3,102
Total	$	399	$	305	$	5,270	$	5,974	$	503	$	37,965	$	44,442	$	(21,586	)	$	22,856

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