10-Q

Form 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

☒Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934.

For the quarterly period ended June 30, 2019

☐Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934.

For the transition period from        to

Commission File number 000‑50687

ATEL Capital Equipment Fund X, LLC

(Exact name of registrant as specified in its charter)

California	68‑0517690
(State or other jurisdiction of Incorporation or organization)	(I. R. S. Employer Identification No.)

The Transamerica Pyramid, 600 Montgomery Street, 9th Floor, San Francisco, California 94111

(Address of principal executive offices)

Registrant’s telephone number, including area code (415) 989‑8800

Securities registered pursuant to section 12(b) of the Act: None

Securities registered pursuant to section 12(g) of the Act: Limited Liability Company Units

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:	Trading Symbol	Name of each exchange on which registered:
N/A	N/A	N/A

Indicate by a check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit files).

Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “accelerated filer, large accelerated filer and smaller reporting company” in Rule 12b‑2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐	Non-accelerated filer ☒	Smaller reporting company ☒
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Act). Yes ☐ No ☒

The number of Limited Liability Company Units outstanding as of July 31, 2019 was 13,971,486.

DOCUMENTS INCORPORATED BY REFERENCE

None.

ATEL CAPITAL EQUIPMENT FUND X, LLC

Index

Part I.	Financial Information	3
Item 1.	Financial Statements (Unaudited)	3
	Balance Sheets, June 30, 2019 and December 31, 2018	3
	Statements of Operations for the three and six months ended June 30, 2019 and 2018	4
	Statements of Changes in Members’ Capital for the three and six months ended June 30, 2019 and 2018	5
	Statements of Cash Flows for the three and six months ended June 30, 2019 and 2018	6
	Notes to the Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 4.	Controls and Procedures	20
Part II.	Other Information	21
Item 1.	Legal Proceedings	21
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	21
Item 3.	Defaults Upon Senior Securities	21
Item 4.	Mine Safety Disclosures	21
Item 5.	Other Information	21
Item 6.	Exhibits	21

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited).

ATEL CAPITAL EQUIPMENT FUND X, LLC

BALANCE SHEETS

JUNE 30, 2019 AND DECEMBER 31, 2018

(in thousands)

	June 30,		December 31,
	2019		2018
	(Unaudited)
ASSETS
Cash and cash equivalents	$	1,460	$	2,877
Accounts receivable, net		90		96
Due from Managing Member		30		15
Investment in securities		44		55
Equipment under operating leases, net		4,216		4,884
Prepaid expenses and other assets		90		109
Total assets	$	5,930	$	8,036
LIABILITIES AND MEMBERS’ CAPITAL
Accounts payable and accrued liabilities:
Other	$	1,258	$	1,095
Deposits due lessees		1		1
Unearned operating lease income		13		17
Total liabilities		1,272		1,113
Commitments and contingencies
Members’ capital:
Managing Member		—		—
Other Members		4,658		6,923
Total Members’ capital		4,658		6,923
Total liabilities and Members’ capital	$	5,930	$	8,036

See accompanying notes.

3

ATEL CAPITAL EQUIPMENT FUND X, LLC

STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2019 AND 2018

(in thousands, except for units and per unit data)

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Revenues:
Leasing activities:
Operating leases	$	447	$	606	$	943	$	1,244
(Loss) gain on sales of equipment under operating leases		(44)		297		(7)		441
Other		117		18		118		18
Total revenues		520		921		1,054		1,703
Expenses:
Depreciation of operating lease assets		48		143		70		333
Asset management fees to Managing Member and/or affiliates		28		29		52		57
Costs reimbursed to Managing Member and/or affiliates		56		142		121		291
Amortization of initial direct costs		—		—		1		1
Impairment losses on equipment		281		459		281		459
Railcar maintenance		26		54		62		76
Provision for credit losses		61		66		31		61
Impairment losses on investment in securities		—		—		11		—
Professional fees		40		24		117		93
Franchise fees and taxes		(11)		(51)		27		(119)
Outside services		20		26		50		70
Insurance		10		10		20		20
Printing and photocopying		1		—		10		6
Storage fees		2		66		4		82
Other		16		19		45		42
Total operating expenses		578		987		902		1,472
Net (loss) income	$	(58)	$	(66)	$	152	$	231
Net (loss) income:
Managing Member	$	—	$	—	$	181	$	266
Other Members		(58)		(66)		(29)		(35)
	$	(58)	$	(66)	$	152	$	231
Net (loss) income per Limited Liability Company Unit (Other Members)	$	—	$	—	$	—	$	—
Weighted average number of Units outstanding		13,971,486		13,971,486		13,971,486		13,971,486

See accompanying notes.

4

ATEL CAPITAL EQUIPMENT FUND X, LLC

STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2019 AND 2018

(in thousands, except for units and per unit data)

(Unaudited)

	Three Months Ended June 30, 2019
	Other Members			Managing
	Units	Amount		Member		Total
Balance March 31, 2019	13,971,486	$	4,716	$	—	$	4,716
Net loss	—		(58)		—		(58)
Balance at end of June 30, 2019	13,971,486	$	4,658	$	—	$	4,658
	Six Months Ended June 30, 2019
	Other Members			Managing
	Units	Amount		Member		Total
Balance December 31, 2018	13,971,486	$	6,923	$	—	$	6,923
Distributions to Other Members ($0.16 per Unit)	—		(2,236)		—		(2,236)
Distributions to Managing Member	—		—		(181)		(181)
Net (loss) income	—		(29)		181		152
Balance June 30, 2019 (Unaudited)	13,971,486	$	4,658	$	—	$	4,658
	Three Months Ended June 30, 2018
	Other Members			Managing
	Units	Amount		Member		Total
Balance March 31, 2018	13,971,486		6,524	$	—	$	6,524
Net loss	—		(66)		—		(66)
Balance at end of June 30, 2018	13,971,486	$	6,458	$	—	$	6,458
	Six Months Ended June 30, 2018
	Other Members			Managing
	Units	Amount		Member		Total
Balance December 31, 2017	13,971,486	$	9,776	$	—	$	9,776
Distributions to Other Members ($0.24 per Unit)	—		(3,283)		—		(3,283)
Distributions to Managing Member	—		—		(266)		(266)
Net (loss) income	—		(35)		266		231
Balance at end of June 30, 2018	13,971,486	$	6,458	$	—	$	6,458

See accompanying notes.

5

ATEL CAPITAL EQUIPMENT FUND X, LLC

STATEMENTS OF CASH FLOWS

FOR THE THREE AND SIX MONTHS ENDED
JUNE 30, 2019 AND 2018

(in thousands)

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Operating activities:
Net (loss) income	$	(58)	$	(66)	$	152	$	231
Adjustments to reconcile net (loss) income to cash provided by operating activities:
Loss (gain) on sales of equipment under operating leases		44		(297)		7		(441)
Depreciation of operating lease assets		48		143		70		333
Amortization of initial direct costs		—		—		1		1
Impairment losses on equipment		281		459		281		459
Provision for credit losses		61		66		31		61
Impairment losses on investment in securities		—		—		11		—
Changes in operating assets and liabilities:
Accounts receivable		(33)		41		(25)		(25)
Due from Managing Member and affiliates		(18)		—		(15)		—
Prepaid expenses and other assets		7		11		19		20
Accounts payable, Managing Member and affiliates		(67)		(59)		—		(33)
Accounts payable, other		170		(68)		165		(184)
Unearned operating lease income		(4)		(22)		(4)		(18)
Net cash provided by operating activities		431		208		693		404
Investing activities:
Principal payments received on direct financing leases		3		—		3		—
Proceeds from sales of equipment under operating leases		263		369		304		560
Net cash provided by investing activities		266		369		307		560
Financing activities:
Repayments under non-recourse debt		—		—		—		(83)
Distributions to Other Members		—		—		(2,236)		(3,283)
Distributions to Managing Member		—		—		(181)		(266)
Net cash used in financing activities		—		—		(2,417)		(3,632)
Net increase / (decrease) in cash and cash equivalents		697		577		(1,417)		(2,668)
Cash and cash equivalents at beginning of period		763		790		2,877		4,035
Cash and cash equivalents at end of period	$	1,460	$	1,367	$	1,460	$	1,367
Supplemental disclosures of cash flow information:
Cash paid during the period for taxes	$	13	$	12	$	44	$	16

See accompanying notes.

6

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

1.    Organization and Limited Liability Company matters:

ATEL Capital Equipment Fund X, LLC (the “Company” or the “Fund”) was formed under the laws of the State of California on August 12, 2002 for the purpose of engaging in the sale of limited liability company investment units and acquiring equipment to engage in equipment leasing, lending and sales activities, primarily in the United States. The Managing Member or Manager of the Company is ATEL Financial Services, LLC (“AFS”), a California limited liability company. The Company may continue until December 31, 2022.

As of March 11, 2005, subscriptions for 14,059,136 Units ($140.6 million) had been received, of which 87,650 Units ($720 thousand) were subsequently rescinded or repurchased (net of distributions paid and allocated syndication costs, as applicable) by the Company through June 30, 2019. As of June 30, 2019,  13,971,486 Units remain issued and outstanding.

The Company is governed by the Limited Liability Company Operating Agreement (“Operating Agreement”), as amended. On January 1, 2012, the Company commenced liquidation phase activities pursuant to the guidelines of the Operating Agreement. Pursuant to the terms of the Operating Agreement, AFS receives compensation and reimbursements for services rendered on behalf of the Company (See Note 5). The Company is required to maintain reasonable cash reserves for working capital, for the repurchase of Units and for contingencies. The repurchase of Units is solely at the discretion of AFS.

These unaudited interim financial statements should be read in conjunction with the financial statements and notes thereto contained in the report on Form 10‑K for the year ended December 31, 2018, filed with the Securities and Exchange Commission.

2.    Summary of significant accounting policies:

Basis of presentation:

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10‑Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the full year.

Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations.

Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data.

In preparing the accompanying unaudited financial statements, the Managing Member has reviewed events that have occurred after June 30, 2019, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, or adjustments thereto.

7

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Use of estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes, and determination of the allowances for doubtful accounts.

Segment reporting:

The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States.

The primary geographic region in which the Company sought leasing opportunities was North America. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the three and six months ended June 30, 2019 and 2018, and long-lived tangible assets as of June 30, 2019 and December 31, 2018 (dollars in thousands):

	Six months ended June 30,
	2019		% of Total		2018		% of Total
Revenue
United States	$	1,026	97	%	$	1,645	97	%
Canada		28	3	%		58	3	%
Total	$	1,054	100	%	$	1,703	100	%
	Three months ended June 30,
	2019		% of Total		2018		% of Total
Revenue
United States	$	510	98	%	$	881	96	%
Canada		10	2	%		40	4	%
Total	$	520	100	%	$	921	100	%

	As of June, 30				As of December, 31
	2019		% of Total		2018		% of Total
Long-lived assets
United States	$	4,125	98	%	$	4,793	98	%
Canada		91	2	%		91	2	%
Total	$	4,216	100	%	$	4,884	100	%

Investment in securities:

From time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements.

8

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Purchased securities

Purchased securities registered for public sale are carried at fair value. Such securities with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company`s results of operations. The Company`s investment securities that do not have readily determinable fair values are measured at cost minus impairment, and adjusted for changes in observable prices. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital.  The investment in securities balance was $44 thousand and $55 thousand as of June 30, 2019 and December 31, 2018.  Impairment losses on investment securities totaled $11 thousand for the three and six months ended June 30, 2019.  There were no impairment losses recorded during the three and six months ended June 30, 2018.  There were no impaired securities or observable price changes at June 30, 2019 and December 31, 2018.  There were no investment securities purchased, sold or disposed of during the three and six months ended June 30, 2019 and 2018.

Per Unit data:

The Company issues only one class of Units, none of which are considered dilutive. Net (loss) income and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the period.

Equipment under operating leases, net and related revenue recognition:

Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with ASC 360‑20‑35‑3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360‑10‑35‑43).

The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized.

9

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis.

Initial direct costs:

With the adoption of ASU No. 2016-02 certain costs associated with the execution of the Company’s leases, which were previously capitalized and amortized over the life of their respective leases, are expensed as incurred. In 2018 and prior, the Company capitalized initial direct costs (“IDC”) associated with the origination of lease assets. IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease basis based on actual contract term using a straight-line method for operating leases. Upon disposal of the underlying lease assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense.

Fair value:

Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows:

Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, generally on a national exchange.

Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market.

Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability.

10

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, information from third party remarketing agents, third party appraisals of collateral and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment, notes receivable and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources.

Recent accounting pronouncements:

In February 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2016-02, Leases. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements.  In December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842), Narrow-Scope Improvements for Lessors. In March 2019, the FASB issued ASU No. 2019-01, Leases: Codification Improvements. Collectively referred to hereafter as ASU No. 2016-02, these standards set out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract to control an asset (i.e., lessees and lessors). The Company does not have any non-cancelable leases where it is a lessee.

ASU No. 2016-02 requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales type leases, direct financing leases and operating leases. These standards were effective as of January 1, 2019. Upon adoption, the Company applied the package of practical expedients that has allowed us to not reassess (i) whether any expired or existing contracts are or contain leases, (ii) lease classification for any expired or existing leases and (iii) initial direct costs for any expired or existing leases. Furthermore, the Company applied the optional transition method in ASU No. 2018-11, which has allowed the company to initially apply the new leases standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the adoption period, although the Company did not have an adjustment. Additionally, the Company leases met the criteria in ASU No. 2018-11 to not separate non-lease components from the related lease component; therefore, the accounting for these leases remained largely unchanged from the previous standard. 

The adoption of ASU No. 2016-02 and the related improvements did not have a material impact in our financial statements. Upon adoption, (i) amounts previously recognized as lessee reimbursements and other income, for the three and six months ended June 30, 2019, have been classified as lease or financing income, (ii) allowances for bad debts are now recognized as a direct reduction of operating lease income, and (iii) certain costs associated with the execution of the Company’s leases, which were previously capitalized and amortized over the life of their respective leases, are expensed as incurred. Subsequent to January 1, 2019, provisions for credit losses relating to operating leases are now included in lease income in the Company’s financial statements.  Provisions for credit losses prior to January 1, 2019 were previously included in operating expenses in the Company’s financial statements and prior periods are not reclassified to conform to the current presentation.

11

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. Management is currently evaluating the standard and expects the Update may potentially result in an increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments.

In November 2018, the FASB issued Accounting Standards Update 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2018-19”). The new standard clarifies certain aspects of the new current expected credit losses (CECL) impairment model in ASU 2016-13. The amendment clarifies that receivables arising from operating leases are within the scope of ASC 842, rather than ASC 326; however, it will be applicable to the Company’s note receivables and direct financing leases, if any. The effective date and transition requirements in this Update are the same as the effective dates and transition requirements in Update 2016-13, as amended by this Update, which is for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements.

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (“ASU 2018-13”), which amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. This ASU modifies disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this Update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this Update and delay adoption of the additional disclosures until their effective date. Management is currently evaluating the impact of this standard on the financial statements and related disclosure requirements. 

12

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

3.    Allowance for credit losses:

The Company’s allowance for credit losses are as follows (in thousands):

	Accounts
	Receivable
	Allowance for
	Doubtful Accounts
	OperatingLeases
Balance December 31, 2017	$	16
Provision for credit losses		85
Balance December 31, 2018		101
Provision for credit losses		31
Balance June 30, 2019	$	132

4.    Equipment under operating leases, net:

The Company’s  equipment under operating leases, net consists of the following (in thousands):

					Depreciation/
					Amortization
	Balance		Reclassifications		Expense or		Balance
	December 31,		Additions / Dispositions		Amortization		June 30,
	2018		and Impairment Losses		of Leases		2019
Equipment under operating leases, net	$	3,689	$	(887)	$	(70)	$	2,732
Assets held for sale or lease, net		1,188		304		(14)		1,478
Initial direct costs, net of accumulated amortization of $4      thousand at June 30, 2019 and $3 at December 31, 2018		7		—		(1)		6
Total	$	4,884	$	(583)	$	(85)	$	4,216

Impairment of equipment under operating leases, net and assets held for sale or lease:

Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the Company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract, if any. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances.

13

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

As a result of these reviews, management determined that impairment losses existed; the Company recorded $281 thousand of impairment losses to reduce the fair value of certain equipment for both three and six months ended June 30, 2019.    There were $459 thousand of impairment losses recorded on equipment during both the three and six months ended June 30, 2018.

The Company utilizes a straight line depreciation method for equipment in all of the categories currently in its portfolio of operating lease transactions. Depreciation expense on the Company’s equipment was $48 thousand and $143 thousand for the respective three months ended June 30, 2019 and 2018, and was $70 thousand and $333 thousand for the respective six months ended June 30, 2019 and 2018. Initial direct costs amortization expense related to the Company’s operating leases was $0 for the respective three months ended June 30, 2019 and 2018.  The Company recorded initial direct cost amortization of $1 thousand for both of the six months ended June 30, 2019 and 2018.

All of the remaining property on lease was acquired during the years 2005 through 2011.

Operating leases:

Property on operating leases consists of the following (in thousands):

	Balance						Balance
	December 31,				Reclassification		June 30,
	2018		Additions		/Dispositions		2019
Transportation, rail	$	12,392	$	—	$	(62)	$	12,330
Trucks and Trailers		3,420		—		(3,333)		87
Aircraft		1,988		—		—		1,988
Manufacturing		624		—		—		624
Petro/natural gas		470		—		—		470
Materials handling		157		—		(26)		131
		19,051		—		(3,421)		15,630
Less accumulated depreciation		(15,362)		(70)		2,534		(12,898)
Total	$	3,689	$	(70)	$	(887)	$	2,732

The average estimated residual value for assets on operating leases was 9% and 21% of the assets’ original cost at June 30, 2019 and December 31, 2018, respectively. There were no operating leases placed in non-accrual status as of the same dates.

At June 30, 2019, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands):

	Operating
	Leases
Six months ending December 31, 2019	$	286
Year Ending December 31, 2020		410
2021		142
2022		60
2023		12
	$	910

14

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of June 30, 2019, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years):

Equipment category	Useful Life
Transportation, rail	35 - 50
Aircraft	20 - 30
Manufacturing	10 - 15
Petro/natural gas	10 - 15
Construction	7 - 10
Materials handling	7 - 10
Transportation, other	7 - 10

5.    Related party transactions:

The terms of the Operating Agreement provide that AFS and/or affiliates are entitled to receive certain fees for equipment management and resale and for management of the Company.

The Operating Agreement allows for the reimbursement of costs incurred by AFS in providing administrative services to the Company. Administrative services provided include Company accounting, finance/treasury, investor relations, legal counsel and lease and equipment documentation. AFS is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of equipment. The Company would be liable for certain future costs to be incurred by AFS to manage the administrative services provided to the Company.

Each of ATEL Leasing Corporation (“ALC”) and AFS is a wholly-owned subsidiary of ATEL Capital Group and performs services for the Company. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; investor relations, communications services and general administrative services for the Company are performed by AFS.

Cost reimbursements to the Managing Member are based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as total assets, number of investors or contributed capital based upon the type of cost incurred.

The Fund’s Operating Agreement places an annual limit and a cumulative limit for cost reimbursements to AFS and/or affiliates. Any reimbursable costs incurred by AFS and/or affiliates during the year exceeding the annual and/or cumulative limits cannot be reimbursed in the current year, though such costs may be recovered in future years to the extent of the cumulative limit. As of June 30, 2019, the Company has not exceeded the annual and/or cumulative limitations discussed above.

During the three and six months ended June 30, 2019 and 2018, AFS and/or affiliates earned fees and billed for reimbursements of costs and expenses pursuant to the Operating Agreement as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Costs reimbursed to Managing Member and/or affiliates	$	56	$	142	$	121	$	291
Asset management fees to Managing Member and/or affiliates		28		29		52		57
	$	84	$	171	$	173	$	348

6.    Commitments:

At June 30, 2019,  there were no commitments to purchase lease assets or fund investments in notes receivable.

15

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

7.    Members’ capital:

Units issued and outstanding were 13,971,486 at both June 30, 2019 and December 31, 2018. The Company was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial Members (50 Units). The Company ceased offering Units on March 11, 2005.

Distributions to the Other Members for the three months ended June 30, 2019 and 2018 were as follows (in thousands except Units and per Unit data):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Distributions declared	$	—	$	—	$	2,236	$	3,283
Weighted average number of Units outstanding		13,971,486		13,971,486		13,971,486		13,971,486
Weighted average distributions per Unit	$	—	$	—	$	0.16	$	0.24

8.    Fair value measurements:

Under applicable accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

The following disclosure of the estimated fair value of financial instruments is made in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification. Fair value estimates, methods and assumptions, set forth below for the Company’s financial instruments, are made solely to comply with the requirements of the Financial Instruments Topic and should be read in conjunction with the Company’s financial statements and related notes.

The Company has determined the estimated fair value amounts by using market information and valuation methodologies that it considers appropriate and consistent with the fair value accounting guidance. Considerable judgment is required to interpret market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

The measurement methodologies are as follows:

Cash and cash equivalents

The recorded amounts of the Company’s cash and cash equivalents approximate fair value because of the liquidity and short-term maturity of these instruments.

Commitments and Contingencies

Management has determined that no recognition for the fair value of the Company’s loan commitments is necessary because their terms are made on a market rate basis and require borrowers to be in compliance with the Company’s credit requirements at the time of funding.

The fair value of contingent liabilities (or guarantees) is not considered material because management believes there has been no event that has occurred wherein a guarantee liability has been incurred or will likely be incurred.

16

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

The following tables present a summary of the carrying value and fair value by level of financial instruments on the Company’s balance sheets  at June 30, 2019 and December 31, 2018 (in thousands):

	Fair Value Measurements at June 30, 2019
	Carrying
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	1,460	$	1,460	$	—	$	—	$	1,460

	Fair Value Measurements at December 31, 2018
	Carrying
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	2,877	$	2,877	$	—	$	—	$	2,877

Impaired lease and/or off-lease equipment (non-recurring)

The following table presents the fair value measurements of impaired off- lease assets at fair value on a non-recurring basis and the level within the hierarchy in which the fair measurements fall at June 30, 2019.  There was no non-recurring impaired lease and/or off lease equipment at December 31, 2018.

			Level 1 Estimated		Level 2 Estimated		Level 3 Estimated
	June 30, 2019		Fair Value		Fair Value		Fair Value
Assets measured at fair value on a non-recurring basis:
Impaired lease and off-lease equipment	$	264	$	-	$	-	$	264

The following table summarizes the valuation techniques and significant unobservable imputes used for the Company’s non-recurring fair value adjustments categorized as Level 3 in the fair value hierarchy at June 30, 2019 and 2018.

June 30, 2019
Name	Valuation Frequency	Valuation Technique	Unobservable Inputs	Range of Input Values
Impaired off-lease Equipment	Non-recurring	Market Approach	Third Party Agents' Pricing	$0 - $8,000
			Quotes – per equipment	(total of $264,000)
			Equipment Condition	Poor to Average
June 30, 2018
Name	Valuation Frequency	Valuation Technique	Unobservable Inputs
Impaired off-lease Equipment	Non-recurring	Market Approach	Off Lease equipment was sold for
			$501 thousand in July 2018.

17

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Statements contained in this Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in this Form 10-Q, which are not historical facts, may be forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. In particular, economic recession and changes in general economic conditions, including, fluctuations in demand for equipment, lease rates, and interest rates, may result in delays in investment and reinvestment, delays in leasing, re-leasing, and disposition of equipment, and reduced returns on invested capital. The Company’s performance is subject to risks relating to lessee defaults and the creditworthiness of its lessees. The Company’s performance is also subject to risks relating to the value of its equipment at the end of its leases, which may be affected by the condition of the equipment, technological obsolescence and the market for new and used equipment at the end of lease terms. Investors are cautioned not to attribute undue certainty to these forward-looking statements, which speak only as of the date of this Form 10-Q. We undertake no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Form 10-Q or to reflect the occurrence of unanticipated events, other than as required by law.

Overview

ATEL Capital Equipment Fund X, LLC (the “Company” or the “Fund”) is a California limited liability company that was formed in August 2002 for the purpose of engaging in the sale of limited liability company investment units and acquiring equipment to generate revenues from equipment leasing and sales activities, primarily in the United States. The Managing Member of the Company is ATEL Financial Services, LLC (“AFS”), a California limited liability company.

The Company may continue until December 31, 2022. However, pursuant to the guidelines of the Limited Liability Company may continue until December 31, 2022. However, pursuant to the guidelines of the Limited Liability Company Operating Agreement (“Operating Agreement”), the Company commenced liquidation phase activities subsequent to the end of the Reinvestment Period which ended on December 31, 2011. Periodic distributions will be paid at the discretion of the Managing Member.

Results of Operations

The Fund had a net loss of $58 thousand and net income of $152 thousand for the respective three and six month periods ended June 30, 2019.  

Total revenues were $520 thousand for the quarter and $1.1 million for the year to date.  The main drivers of such revenues were from operating lease rents, warrants held in the portfolio and loss on sales of lease assets.  Operating lease rents for the quarter were $447 thousand and $943 thousand for the year to date period.  This trend is somewhat indicative of a fund in its liquidating stage where lease assets are sold as lease commitments end.  In this regard, losses on sales of lease assets were $44 thousand and $7 thousand for the respective three and six month periods ended June 30, 2019.

Total operating expenses were $578 thousand for the quarter and $902 thousand for the year to date.  The main drivers of such net operating expense decreases were from depreciation of operating lease assets, impairment losses on equipment, cost reimbursement to managing member and affiliates, and storage fees paid during current year to date; offset, in part, by $40 thousand quarterly and $146 thousand year to date increases in franchise fees and taxes.

Depreciation of operating lease assets for the quarter was $48 thousand and $70 thousand for the year to date period, and decreased by $95 thousand and $263 thousand for the respective three and six months ended in June 30, 2019.  This declining trend of depreciation is consistent with a fund in its liquidating stage where lease assets are sold as lease commitments end.

There were $281 thousand of impairment losses on equipment during the three and six months ended June 30, 2019.

18

Cost reimbursements to managing member and/or affiliates of $56 thousand and $121 thousand for the respective three and six month periods ended June 30, 2019. The year to date cost reimbursements decrease by $170 thousand reflective of refinements of baseline allocations of common costs among the fund and its affiliates.    

The provision for credit losses was $61 thousand and $31 thousand for the three months and six months ended June 30, 2019, these amounts represent the past due invoices greater than ninety days at June 30, 2019.  

Expense amounts also reflected professional fees of $40 thousand and $117 thousand, and outside services of $20 thousand and $50 thousand for the respective three and six months ended June 30, 2019; and, represent direct Fund specific core costs of preparation, printing, filing and distribution of annual Form 1065 tax and shareholder reports on Form K-1.  In addition, such expenses include costs attributable to its annual/quarterly tax preparation, valuation reports and mandated periodic regulatory filings with the SEC.

Cash balances increased by $697 thousand for the quarter and decreased by $1.4 million for the year to date period.  This was mainly the result of the annual distribution to the other members, aforementioned items of net (loss) income, depreciation of operating lease assets, and loss on sales of lease assets, offset in part, by the proceeds from sales of lease assets of $263 thousand and $305 thousand during the respective quarter and year to date periods.

Commitments and Contingencies and Off-Balance Sheet Transactions

Commitments and Contingencies

At June 30, 2019, there were no commitments to purchase lease assets or fund investments in notes receivable.

Off-Balance Sheet Transactions

None.

Recent Accounting Pronouncements

For detailed information on recent accounting pronouncements, see Note 2, Summary of significant accounting policies.

Critical Accounting Policies and Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates, which are based upon historical experiences, market trends and financial forecasts, and upon various other assumptions that management believes to be reasonable under the circumstances and at that certain point in time. Actual results may differ, significantly at times, from these estimates under different assumptions or conditions.

The Company’s critical accounting policies are described in its Annual Report on Form 10-K for the year ended December 31, 2018. There have been no material changes to the Company’s critical accounting policies since December 31, 2018.

19

Item 4. Controls and Procedures.

Evaluation of disclosure controls and procedures

The Company’s Managing Member’s President and Chief Executive Officer, and Executive Vice President and Chief Financial Officer and Chief Operating Officer (“Management”), evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e) and 15d-15(e)) as of the end of the period covered by this report. Based on the evaluation of the Company’s disclosure controls and procedures, Management concluded that as of the end of the period covered by this report, the design and operation of these disclosure controls and procedures were effective.

The Company does not control the financial reporting process, and is solely dependent on the Management of the Managing Member, who is responsible for providing the Company with financial statements in accordance with generally accepted accounting principles in the United States. The Managing Member’s disclosure controls and procedures, as they are applicable to the Company, means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Act (15 U.S.C. 78a et seq.) is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Changes in internal control

There were no changes in the Managing Member’s internal control over financial reporting, as it is applicable to the Company, during the quarter ended June 30, 2019 that have materially affected, or are reasonably likely to materially affect, the Managing Member’s internal control over financial reporting, as it is applicable to the Company.

20

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

In the ordinary course of conducting business, there may be certain claims, suits, and complaints filed against the Company. In the opinion of management, the outcome of such matters, if any, will not have a material impact on the Company’s financial position or results of operations. No material legal proceedings are currently pending against the Company or against any of its assets.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not Applicable.

Item 5. Other Information.

None.

Item 6. Exhibits.

Documents filed as a part of this report:

1. Financial Statement Schedules

All other schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions or are inapplicable, and therefore have been omitted.

2. Other Exhibits

31.1	Rule 13a-14(a)/ 15d-14(a) Certification of Dean L. Cash
31.2	Rule 13a-14(a)/ 15d-14(a) Certification of Paritosh K. Choksi
32.1	Certification Pursuant to 18 U.S.C. section 1350 of Dean L. Cash
32.2	Certification Pursuant to 18 U.S.C. section 1350 of Paritosh K. Choksi
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

21

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: August 13, 2019

ATEL CAPITAL EQUIPMENT FUND X, LLC

(Registrant)

		By:	ATEL Financial Services, LLC
			Managing Member of Registrant
By:	/s/ Dean L. Cash
	Dean L. Cash
	President and Chief Executive Officer of ATEL Financial Services, LLC (Managing Member)
By:	/s/ Paritosh K. Choksi
	Paritosh K. Choksi
	Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Financial Services, LLC (Managing Member)
By:	/s/ Samuel Schussler
	Samuel Schussler
	Senior Vice President and Chief Accounting Officer of ATEL Financial Services, LLC (Managing Member)

22

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO RULE 13a-14(a) OR RULE 15d-14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Dean L. Cash, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of ATEL Capital Equipment Fund X, LLC;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)     Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 13, 2019

/s/ Dean L. Cash

Dean L. Cash

President and Chief Executive Officer of

ATEL Financial Services, LLC (Managing Member)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a) OR RULE 15d-14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Paritosh K. Choksi, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of ATEL Capital Equipment Fund X, LLC;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)     Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 13, 2019

/s/ Paritosh K. Choksi

Paritosh K. Choksi

Executive Vice President and Chief Financial Officer and Chief Operating

Officer of ATEL Financial Services, LLC (Managing Member)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C.§1350,

AS ADOPTED PURSUANT TO

§906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of ATEL Capital Equipment Fund X, LLC (the ‘‘Company’’) on Form 10-Q for the period ended June  30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the ‘‘Report’’), I, Dean L. Cash, President and Chief Executive Officer of ATEL Financial Services, LLC, Managing Member of the Company, hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

1.     The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 13, 2019

/s/ Dean L. Cash

Dean L. Cash

President and Chief Executive Officer of

ATEL Financial Services, LLC (Managing Member)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

§906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of ATEL Capital Equipment Fund X, LLC (the ‘‘Company’’) on Form 10-Q for the period ended June  30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the ‘‘Report’’), I, Paritosh K. Choksi, Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Financial Services, LLC, Managing Member of the Company, hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

1.     The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 13, 2019

/s/ Paritosh K. Choksi

Paritosh K. Choksi

Executive Vice President and Chief Financial

Officer and Chief Operating Officer of

ATEL Financial Services, LLC (Managing Member)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 31, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Registrant Name	ATEL CAPITAL EQUIPMENT FUND X LLC
Entity Central Index Key	0001186258
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Smaller Reporting Company	true
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Units Outstanding		13,971,486

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Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 1,460	$ 2,877
Accounts receivable, net	90	96
Due from Managing Member	30	15
Investment in securities	44	55
Equipment under operating leases, net	4,216	4,884
Prepaid expenses and other assets	90	109
Total assets	5,930	8,036
Accounts payable and accrued liabilities:
Other	1,258	1,095
Deposits due lessees	1	1
Unearned operating lease income	13	17
Total liabilities	1,272	1,113
Commitments and contingencies
Members' capital:
Managing Member
Other Members	4,658	6,923
Total Members' capital	4,658	6,923
Total liabilities and Members' capital	$ 5,930	$ 8,036

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Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Leasing activities:
Operating leases	$ 447	$ 606	$ 943	$ 1,244
(Loss) gain sales of equipment under operating leases	(44)	297	(7)	441
Other	117	18	118	18
Total revenues	520	921	1,054	1,703
Expenses:
Depreciation of operating lease assets	48	143	70	333
Asset management fees to Managing Member and/or affiliates	28	29	52	57
Costs reimbursed to Managing Member and/or affiliates	56	142	121	291
Amortization of initial direct costs			1	1
Impairment losses on equipment	281	459	281	459
Railcar maintenance	26	54	62	76
Provision for credit losses	61	66	31	61
Impairment losses on investment in securities			11
Professional fees	40	24	117	93
Franchise fees and taxes	(11)	(51)	27	(119)
Outside services	20	26	50	70
Insurance	10	10	20	20
Printing and photocopying	1		10	6
Storage fees	2	66	4	82
Other	16	19	45	42
Total operating expenses	578	987	902	1,472
Net (loss) income	(58)	(66)	152	231
Net (loss) income:
Managing Member			181	266
Other Members	(58)	(66)	(29)	(35)
Net (loss) income	$ (58)	$ (66)	$ 152	$ 231
Net (loss) income per Limited Liability Company Unit (Other Members)
Weighted average number of Units outstanding	13,971,486	13,971,486	13,971,486	13,971,486

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Statements of Changes in Members' Capital - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Beginning Balance	$ 4,716	$ 6,524	$ 6,923	$ 9,776
Distributions to Other Members			(2,236)	(3,283)
Distributions to Managing Member			(181)	(266)
Net (loss) income	(58)	(66)	152	231
Ending Balance	$ 4,658	$ 6,458	$ 4,658	$ 6,458
Other Members [Member]
Beginning Balance (in Units)	13,971,486	13,971,486	13,971,486	13,971,486
Beginning Balance	$ 4,716	$ 6,524	$ 6,923	$ 9,776
Distributions to Other Members			(2,236)	(3,283)
Net (loss) income	$ (58)	$ (66)	$ (29)	$ (35)
Ending Balance (in Units)	13,971,486	13,971,486	13,971,486	13,971,486
Ending Balance	$ 4,658	$ 6,458	$ 4,658	$ 6,458
Managing Member [Member]
Distributions to Managing Member			(181)	(266)
Net (loss) income			$ 181	$ 266

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Statements of Changes in Members' Capital (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Other Members [Member]
Weighted average distributions per Unit	$ 0.16	$ 0.24

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Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Operating activities:
Net (loss) income	$ (58)	$ (66)	$ 152	$ 231
Adjustments to reconcile net (loss) income to cash provided by operating activities:
(Loss) gain on sales of equipment under operating leases	44	(297)	7	(441)
Depreciation of operating lease assets	48	143	70	333
Amortization of initial direct costs			1	1
Impairment losses on equipment	281	459	281	459
Provision for credit losses	61	66	31	61
Impairment losses on investment in securities			11
Changes in operating assets and liabilities:
Accounts receivable	(33)	41	(25)	(25)
Due from Managing Member and affiliates	(18)		(15)
Prepaid expenses and other assets	7	11	19	20
Accounts payable, Managing Member and affiliates	(67)	(59)		(33)
Accounts payable, other	170	(68)	165	(184)
Unearned operating lease income	(4)	(22)	(4)	(18)
Net cash provided by operating activities	431	208	693	404
Investing activities:
Principal payments received on direct financing leases	3		3
Proceeds from sales of equipment under operating leases	263	369	304	560
Net cash provided by investing activities	266	369	307	560
Financing activities:
Repayments under non-recourse debt				(83)
Net cash used in financing activities			(2,417)	(3,632)
Net increase / (decrease) in cash and cash equivalents	697	577	(1,417)	(2,668)
Cash and cash equivalents at beginning of period	763	790	2,877	4,035
Cash and cash equivalents at end of period	1,460	1,367	1,460	1,367
Supplemental disclosures of cash flow information:
Cash paid during the period for taxes	13	12	44	16
Managing Member [Member]
Operating activities:
Net (loss) income			181	266
Financing activities:
Distributions to Members			(181)	(266)
Other Members [Member]
Operating activities:
Net (loss) income	$ (58)	$ (66)	(29)	(35)
Financing activities:
Distributions to Members			$ (2,236)	$ (3,283)

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Organization and Limited Liability Company Matters

6 Months Ended

Jun. 30, 2019

Organization and Limited Liability Company Matters [Abstract]

Organization and Limited Liability Company Matters

1.    Organization and Limited Liability Company matters:

ATEL Capital Equipment Fund X, LLC (the “Company” or the “Fund”) was formed under the laws of the State of California on August 12, 2002 for the purpose of engaging in the sale of limited liability company investment units and acquiring equipment to engage in equipment leasing, lending and sales activities, primarily in the United States. The Managing Member or Manager of the Company is ATEL Financial Services, LLC (“AFS”), a California limited liability company. The Company may continue until December 31, 2022.

As of March 11, 2005, subscriptions for 14,059,136 Units ($140.6 million) had been received, of which 87,650 Units ($720 thousand) were subsequently rescinded or repurchased (net of distributions paid and allocated syndication costs, as applicable) by the Company through June 30, 2019. As of June 30, 2019,  13,971,486 Units remain issued and outstanding.

The Company is governed by the Limited Liability Company Operating Agreement (“Operating Agreement”), as amended. On January 1, 2012, the Company commenced liquidation phase activities pursuant to the guidelines of the Operating Agreement. Pursuant to the terms of the Operating Agreement, AFS receives compensation and reimbursements for services rendered on behalf of the Company (See Note 5). The Company is required to maintain reasonable cash reserves for working capital, for the repurchase of Units and for contingencies. The repurchase of Units is solely at the discretion of AFS.

These unaudited interim financial statements should be read in conjunction with the financial statements and notes thereto contained in the report on Form 10‑K for the year ended December 31, 2018, filed with the Securities and Exchange Commission.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2019

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.    Summary of significant accounting policies:

Basis of presentation:

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10‑Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the full year.

Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations.

Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data.

In preparing the accompanying unaudited financial statements, the Managing Member has reviewed events that have occurred after June 30, 2019, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, or adjustments thereto.

Use of estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes, and determination of the allowances for doubtful accounts.

Segment reporting:

The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States.

The primary geographic region in which the Company sought leasing opportunities was North America. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the three and six months ended June 30, 2019 and 2018, and long-lived tangible assets as of June 30, 2019 and December 31, 2018 (dollars in thousands):

	Six months ended June 30,
	2019		% of Total		2018		% of Total
Revenue
United States	$	1,026	97	%	$	1,645	97	%
Canada		28	3	%		58	3	%
Total	$	1,054	100	%	$	1,703	100	%
	Three months ended June 30,
	2019		% of Total		2018		% of Total
Revenue
United States	$	510	98	%	$	881	96	%
Canada		10	2	%		40	4	%
Total	$	520	100	%	$	921	100	%

	As of June, 30				As of December, 31
	2019		% of Total		2018		% of Total
Long-lived assets
United States	$	4,125	98	%	$	4,793	98	%
Canada		91	2	%		91	2	%
Total	$	4,216	100	%	$	4,884	100	%

Investment in securities:

From time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements.

Purchased securities

Purchased securities registered for public sale are carried at fair value. Such securities with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company`s results of operations. The Company`s investment securities that do not have readily determinable fair values are measured at cost minus impairment, and adjusted for changes in observable prices. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital.  The investment in securities balance was $44 thousand and $55 thousand as of June 30, 2019 and December 31, 2018.  Impairment losses on investment securities totaled $11 thousand for the three and six months ended June 30, 2019. There were no impairment losses recorded during the three and six months ended June 30, 2018. There were no impaired securities or observable price changes at June 30, 2019 and December 31, 2018.  There were no investment securities purchased, sold or disposed of during the three and six months ended June 30, 2019 and 2018.

Per Unit data:

The Company issues only one class of Units, none of which are considered dilutive. Net (loss) income and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the period.

Equipment under operating leases, net and related revenue recognition:

Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with ASC 360‑20‑35‑3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360‑10‑35‑43).

The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized.

Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis.

Initial direct costs:

With the adoption of ASU No. 2016-02 certain costs associated with the execution of the Company’s leases, which were previously capitalized and amortized over the life of their respective leases, are expensed as incurred. In 2018 and prior, the Company capitalized initial direct costs (“IDC”) associated with the origination of lease assets. IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease basis based on actual contract term using a straight-line method for operating leases. Upon disposal of the underlying lease assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense.

Fair value:

Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows:

Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, generally on a national exchange.

Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market.

Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability.

The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, information from third party remarketing agents, third party appraisals of collateral and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment, notes receivable and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources.

Recent accounting pronouncements:

In February 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2016-02, Leases. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements.  In December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842), Narrow-Scope Improvements for Lessors. In March 2019, the FASB issued ASU No. 2019-01, Leases: Codification Improvements. Collectively referred to hereafter as ASU No. 2016-02, these standards set out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract to control an asset (i.e., lessees and lessors). The Company does not have any non-cancelable leases where it is a lessee.

ASU No. 2016-02 requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales type leases, direct financing leases and operating leases. These standards were effective as of January 1, 2019. Upon adoption, the Company applied the package of practical expedients that has allowed us to not reassess (i) whether any expired or existing contracts are or contain leases, (ii) lease classification for any expired or existing leases and (iii) initial direct costs for any expired or existing leases. Furthermore, the Company applied the optional transition method in ASU No. 2018-11, which has allowed the company to initially apply the new leases standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the adoption period, although the Company did not have an adjustment. Additionally, the Company leases met the criteria in ASU No. 2018-11 to not separate non-lease components from the related lease component; therefore, the accounting for these leases remained largely unchanged from the previous standard. 

The adoption of ASU No. 2016-02 and the related improvements did not have a material impact in our financial statements. Upon adoption, (i) amounts previously recognized as lessee reimbursements and other income, for the three and six months ended June 30, 2019, have been classified as lease or financing income, (ii) allowances for bad debts are now recognized as a direct reduction of operating lease income, and (iii) certain costs associated with the execution of the Company’s leases, which were previously capitalized and amortized over the life of their respective leases, are expensed as incurred. Subsequent to January 1, 2019, provisions for credit losses relating to operating leases are now included in lease income in the Company’s financial statements.  Provisions for credit losses prior to January 1, 2019 were previously included in operating expenses in the Company’s financial statements and prior periods are not reclassified to conform to the current presentation.

In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. Management is currently evaluating the standard and expects the Update may potentially result in an increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments.

In November 2018, the FASB issued Accounting Standards Update 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2018-19”). The new standard clarifies certain aspects of the new current expected credit losses (CECL) impairment model in ASU 2016-13. The amendment clarifies that receivables arising from operating leases are within the scope of ASC 842, rather than ASC 326; however, it will be applicable to the Company’s note receivables and direct financing leases, if any. The effective date and transition requirements in this Update are the same as the effective dates and transition requirements in Update 2016-13, as amended by this Update, which is for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements.

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (“ASU 2018-13”), which amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. This ASU modifies disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this Update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this Update and delay adoption of the additional disclosures until their effective date. Management is currently evaluating the impact of this standard on the financial statements and related disclosure requirements. 

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Allowance for Credit Losses

6 Months Ended

Jun. 30, 2019

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses

3.    Allowance for credit losses:

The Company’s allowance for credit losses are as follows (in thousands):

	Accounts
	Receivable
	Allowance for
	Doubtful Accounts
	OperatingLeases
Balance December 31, 2017	$	16
Provision for credit losses		85
Balance December 31, 2018		101
Provision for credit losses		31
Balance June 30, 2019	$	132

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Equipment Under Operating Leases, Net

6 Months Ended

Jun. 30, 2019

Equipment Under Operating Leases, Net [Abstract]

Equipment Under Operating Leases, Net

4.    Equipment under operating leases, net:

The Company’s equipment under operating leases, net consists of the following (in thousands):

					Depreciation/
					Amortization
	Balance		Reclassifications		Expense or		Balance
	December 31,		Additions / Dispositions		Amortization		June 30,
	2018		and Impairment Losses		of Leases		2019
Equipment under operating leases, net	$	3,689	$	(887)	$	(70)	$	2,732
Assets held for sale or lease, net		1,188		304		(14)		1,478
Initial direct costs, net of accumulated amortization of $4      thousand at June 30, 2019 and $3 at December 31, 2018		7		—		(1)		6
Total	$	4,884	$	(583)	$	(85)	$	4,216

Impairment of equipment under operating leases, net and assets held for sale or lease:

Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the Company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract, if any. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances.

As a result of these reviews, management determined that impairment losses existed; the Company recorded $281 thousand of impairment losses to reduce the fair value of certain equipment for both three and six months ended June 30, 2019.  There were $459 thousand of impairment losses recorded on equipment during both the three and six months ended June 30, 2018.

The Company utilizes a straight line depreciation method for equipment in all of the categories currently in its portfolio of operating lease transactions. Depreciation expense on the Company’s equipment was $48 thousand and $143 thousand for the respective three months ended June 30, 2019 and 2018, and was $70 thousand and $333 thousand for the respective six months ended June 30, 2019 and 2018. Initial direct costs amortization expense related to the Company’s operating leases was $0 for the respective three months ended June 30, 2019 and 2018.  The Company recorded initial direct cost amortization of $1 thousand for both of the six months ended June 30, 2019 and 2018.

All of the remaining property on lease was acquired during the years 2005 through 2011.

Operating leases:

Property on operating leases consists of the following (in thousands):

	Balance						Balance
	December 31,				Reclassification		June 30,
	2018		Additions		/Dispositions		2019
Transportation, rail	$	12,392	$	—	$	(62)	$	12,330
Trucks and Trailers		3,420		—		(3,333)		87
Aircraft		1,988		—		—		1,988
Manufacturing		624		—		—		624
Petro/natural gas		470		—		—		470
Materials handling		157		—		(26)		131
		19,051		—		(3,421)		15,630
Less accumulated depreciation		(15,362)		(70)		2,534		(12,898)
Total	$	3,689	$	(70)	$	(887)	$	2,732

The average estimated residual value for assets on operating leases was 9% and 21% of the assets’ original cost at June 30, 2019 and December 31, 2018, respectively. There were no operating leases placed in non-accrual status as of the same dates.

At June 30, 2019, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands):

	Operating
	Leases
Six months ending December 31, 2019	$	286
Year Ending December 31, 2020		410
2021		142
2022		60
2023		12
	$	910

The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of June 30, 2019, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years):

Equipment category	Useful Life
Transportation, rail	35 - 50
Aircraft	20 - 30
Manufacturing	10 - 15
Petro/natural gas	10 - 15
Construction	7 - 10
Materials handling	7 - 10
Transportation, other	7 - 10

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Related Party Transactions

6 Months Ended

Jun. 30, 2019

Related Party Transactions [Abstract]

Related Party Transactions

5.    Related party transactions:

The terms of the Operating Agreement provide that AFS and/or affiliates are entitled to receive certain fees for equipment management and resale and for management of the Company.

The Operating Agreement allows for the reimbursement of costs incurred by AFS in providing administrative services to the Company. Administrative services provided include Company accounting, finance/treasury, investor relations, legal counsel and lease and equipment documentation. AFS is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of equipment. The Company would be liable for certain future costs to be incurred by AFS to manage the administrative services provided to the Company.

Each of ATEL Leasing Corporation (“ALC”) and AFS is a wholly-owned subsidiary of ATEL Capital Group and performs services for the Company. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; investor relations, communications services and general administrative services for the Company are performed by AFS.

Cost reimbursements to the Managing Member are based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as total assets, number of investors or contributed capital based upon the type of cost incurred.

The Fund’s Operating Agreement places an annual limit and a cumulative limit for cost reimbursements to AFS and/or affiliates. Any reimbursable costs incurred by AFS and/or affiliates during the year exceeding the annual and/or cumulative limits cannot be reimbursed in the current year, though such costs may be recovered in future years to the extent of the cumulative limit. As of June 30, 2019, the Company has not exceeded the annual and/or cumulative limitations discussed above.

During the three and six months ended June 30, 2019 and 2018, AFS and/or affiliates earned fees and billed for reimbursements of costs and expenses pursuant to the Operating Agreement as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Costs reimbursed to Managing Member and/or affiliates	$	56	$	142	$	121	$	291
Asset management fees to Managing Member and/or affiliates		28		29		52		57
	$	84	$	171	$	173	$	348

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Commitments

6 Months Ended

Jun. 30, 2019

Commitments [Abstract]

Commitments

6.    Commitments:

At June 30, 2019, there were no commitments to purchase lease assets or fund investments in notes receivable.

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Members' Capital

6 Months Ended

Jun. 30, 2019

Members' Capital [Abstract]

Members' Capital

7.    Members’ capital:

Units issued and outstanding were 13,971,486 at both June 30, 2019 and December 31, 2018. The Company was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial Members (50 Units). The Company ceased offering Units on March 11, 2005.

Distributions to the Other Members for the three months ended June 30, 2019 and 2018 were as follows (in thousands except Units and per Unit data):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Distributions declared	$	—	$	—	$	2,236	$	3,283
Weighted average number of Units outstanding		13,971,486		13,971,486		13,971,486		13,971,486
Weighted average distributions per Unit	$	—	$	—	$	0.16	$	0.24

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Fair Value Measurements

6 Months Ended

Jun. 30, 2019

Fair Value Measurements [Abstract]

Fair Value Measurements

8.    Fair value measurements:

Under applicable accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

The following disclosure of the estimated fair value of financial instruments is made in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification. Fair value estimates, methods and assumptions, set forth below for the Company’s financial instruments, are made solely to comply with the requirements of the Financial Instruments Topic and should be read in conjunction with the Company’s financial statements and related notes.

The Company has determined the estimated fair value amounts by using market information and valuation methodologies that it considers appropriate and consistent with the fair value accounting guidance. Considerable judgment is required to interpret market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

The measurement methodologies are as follows:

Cash and cash equivalents

The recorded amounts of the Company’s cash and cash equivalents approximate fair value because of the liquidity and short-term maturity of these instruments.

Commitments and Contingencies

Management has determined that no recognition for the fair value of the Company’s loan commitments is necessary because their terms are made on a market rate basis and require borrowers to be in compliance with the Company’s credit requirements at the time of funding.

The fair value of contingent liabilities (or guarantees) is not considered material because management believes there has been no event that has occurred wherein a guarantee liability has been incurred or will likely be incurred.

The following tables present a summary of the carrying value and fair value by level of financial instruments on the Company’s balance sheets at June 30, 2019 and December 31, 2018 (in thousands):

	Fair Value Measurements at June 30, 2019
	Carrying
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	1,460	$	1,460	$	—	$	—	$	1,460

	Fair Value Measurements at December 31, 2018
	Carrying
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	2,877	$	2,877	$	—	$	—	$	2,877

Impaired lease and/or off-lease equipment (non-recurring)

The following table presents the fair value measurements of impaired off- lease assets at fair value on a non-recurring basis and the level within the hierarchy in which the fair measurements fall at June 30, 2019.  There was no non-recurring impaired lease and/or off lease equipment at December 31, 2018.

			Level 1 Estimated		Level 2 Estimated		Level 3 Estimated
	June 30, 2019		Fair Value		Fair Value		Fair Value
Assets measured at fair value on a non-recurring basis:
Impaired lease and off-lease equipment	$	264	$	-	$	-	$	264

The following table summarizes the valuation techniques and significant unobservable imputes used for the Company’s non-recurring fair value adjustments categorized as Level 3 in the fair value hierarchy at June 30, 2019 and 2018.

June 30, 2019
Name	Valuation Frequency	Valuation Technique	Unobservable Inputs	Range of Input Values
Impaired off-lease Equipment	Non-recurring	Market Approach	Third Party Agents' Pricing	$0 - $8,000
			Quotes – per equipment	(total of $264,000)
			Equipment Condition	Poor to Average
June 30, 2018
Name	Valuation Frequency	Valuation Technique	Unobservable Inputs
Impaired off-lease Equipment	Non-recurring	Market Approach	Off Lease equipment was sold for
			$501 thousand in July 2018.

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Summary of Significant Accounting Policies (Policy)

6 Months Ended

Jun. 30, 2019

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of presentation:

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10‑Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the full year.

Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations.

Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data.

In preparing the accompanying unaudited financial statements, the Managing Member has reviewed events that have occurred after June 30, 2019, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, or adjustments thereto.

Use of Estimates

Use of estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes, and determination of the allowances for doubtful accounts.

Segment Reporting

Segment reporting:

The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States.

The primary geographic region in which the Company sought leasing opportunities was North America. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the three and six months ended June 30, 2019 and 2018, and long-lived tangible assets as of June 30, 2019 and December 31, 2018 (dollars in thousands):

	Six months ended June 30,
	2019		% of Total		2018		% of Total
Revenue
United States	$	1,026	97	%	$	1,645	97	%
Canada		28	3	%		58	3	%
Total	$	1,054	100	%	$	1,703	100	%
	Three months ended June 30,
	2019		% of Total		2018		% of Total
Revenue
United States	$	510	98	%	$	881	96	%
Canada		10	2	%		40	4	%
Total	$	520	100	%	$	921	100	%

	As of June, 30				As of December, 31
	2019		% of Total		2018		% of Total
Long-lived assets
United States	$	4,125	98	%	$	4,793	98	%
Canada		91	2	%		91	2	%
Total	$	4,216	100	%	$	4,884	100	%

Investment in Securities

Investment in securities:

From time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements.

Purchased securities

Purchased securities registered for public sale are carried at fair value. Such securities with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company`s results of operations. The Company`s investment securities that do not have readily determinable fair values are measured at cost minus impairment, and adjusted for changes in observable prices. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital.  The investment in securities balance was $44 thousand and $55 thousand as of June 30, 2019 and December 31, 2018.  Impairment losses on investment securities totaled $11 thousand for the three and six months ended June 30, 2019. There were no impairment losses recorded during the three and six months ended June 30, 2018. There were no impaired securities or observable price changes at June 30, 2019 and December 31, 2018.  There were no investment securities purchased, sold or disposed of during the three and six months ended June 30, 2019 and 2018.

Per Unit Data

Per Unit data:

The Company issues only one class of Units, none of which are considered dilutive. Net (loss) income and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the period.

Equipment on Operating Leases and Related Revenue Recognition

Equipment under operating leases, net and related revenue recognition:

Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with ASC 360‑20‑35‑3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360‑10‑35‑43).

The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized.

Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis.

Initial Direct Costs

Initial direct costs:

With the adoption of ASU No. 2016-02 certain costs associated with the execution of the Company’s leases, which were previously capitalized and amortized over the life of their respective leases, are expensed as incurred. In 2018 and prior, the Company capitalized initial direct costs (“IDC”) associated with the origination of lease assets. IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease basis based on actual contract term using a straight-line method for operating leases. Upon disposal of the underlying lease assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense.

Fair Value

Fair value:

Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows:

Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, generally on a national exchange.

Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market.

Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability.

The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, information from third party remarketing agents, third party appraisals of collateral and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment, notes receivable and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources.

Recent Accounting Pronouncements

Recent accounting pronouncements:

In February 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2016-02, Leases. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements.  In December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842), Narrow-Scope Improvements for Lessors. In March 2019, the FASB issued ASU No. 2019-01, Leases: Codification Improvements. Collectively referred to hereafter as ASU No. 2016-02, these standards set out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract to control an asset (i.e., lessees and lessors). The Company does not have any non-cancelable leases where it is a lessee.

ASU No. 2016-02 requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales type leases, direct financing leases and operating leases. These standards were effective as of January 1, 2019. Upon adoption, the Company applied the package of practical expedients that has allowed us to not reassess (i) whether any expired or existing contracts are or contain leases, (ii) lease classification for any expired or existing leases and (iii) initial direct costs for any expired or existing leases. Furthermore, the Company applied the optional transition method in ASU No. 2018-11, which has allowed the company to initially apply the new leases standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the adoption period, although the Company did not have an adjustment. Additionally, the Company leases met the criteria in ASU No. 2018-11 to not separate non-lease components from the related lease component; therefore, the accounting for these leases remained largely unchanged from the previous standard. 

The adoption of ASU No. 2016-02 and the related improvements did not have a material impact in our financial statements. Upon adoption, (i) amounts previously recognized as lessee reimbursements and other income, for the three and six months ended June 30, 2019, have been classified as lease or financing income, (ii) allowances for bad debts are now recognized as a direct reduction of operating lease income, and (iii) certain costs associated with the execution of the Company’s leases, which were previously capitalized and amortized over the life of their respective leases, are expensed as incurred. Subsequent to January 1, 2019, provisions for credit losses relating to operating leases are now included in lease income in the Company’s financial statements.  Provisions for credit losses prior to January 1, 2019 were previously included in operating expenses in the Company’s financial statements and prior periods are not reclassified to conform to the current presentation.

In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. Management is currently evaluating the standard and expects the Update may potentially result in an increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments.

In November 2018, the FASB issued Accounting Standards Update 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2018-19”). The new standard clarifies certain aspects of the new current expected credit losses (CECL) impairment model in ASU 2016-13. The amendment clarifies that receivables arising from operating leases are within the scope of ASC 842, rather than ASC 326; however, it will be applicable to the Company’s note receivables and direct financing leases, if any. The effective date and transition requirements in this Update are the same as the effective dates and transition requirements in Update 2016-13, as amended by this Update, which is for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements.

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (“ASU 2018-13”), which amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. This ASU modifies disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this Update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this Update and delay adoption of the additional disclosures until their effective date. Management is currently evaluating the impact of this standard on the financial statements and related disclosure requirements.

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2019

Summary of Significant Accounting Policies [Abstract]

Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue and Long-Lived Assets

The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the three and six months ended June 30, 2019 and 2018, and long-lived tangible assets as of June 30, 2019 and December 31, 2018 (dollars in thousands):

	Six months ended June 30,
	2019		% of Total		2018		% of Total
Revenue
United States	$	1,026	97	%	$	1,645	97	%
Canada		28	3	%		58	3	%
Total	$	1,054	100	%	$	1,703	100	%
	Three months ended June 30,
	2019		% of Total		2018		% of Total
Revenue
United States	$	510	98	%	$	881	96	%
Canada		10	2	%		40	4	%
Total	$	520	100	%	$	921	100	%

	As of June, 30				As of December, 31
	2019		% of Total		2018		% of Total
Long-lived assets
United States	$	4,125	98	%	$	4,793	98	%
Canada		91	2	%		91	2	%
Total	$	4,216	100	%	$	4,884	100	%

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Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2019

Allowance for Credit Losses [Abstract]

Activity in Allowance for Credit Losses

The Company’s allowance for credit losses are as follows (in thousands):

	Accounts
	Receivable
	Allowance for
	Doubtful Accounts
	OperatingLeases
Balance December 31, 2017	$	16
Provision for credit losses		85
Balance December 31, 2018		101
Provision for credit losses		31
Balance June 30, 2019	$	132

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Equipment Under Operating Leases, Net (Tables)

6 Months Ended

Jun. 30, 2019

Equipment Under Operating Leases, Net [Abstract]

Investment in Leases

The Company’s equipment under operating leases, net consists of the following (in thousands):

					Depreciation/
					Amortization
	Balance		Reclassifications		Expense or		Balance
	December 31,		Additions / Dispositions		Amortization		June 30,
	2018		and Impairment Losses		of Leases		2019
Equipment under operating leases, net	$	3,689	$	(887)	$	(70)	$	2,732
Assets held for sale or lease, net		1,188		304		(14)		1,478
Initial direct costs, net of accumulated amortization of $4      thousand at June 30, 2019 and $3 at December 31, 2018		7		—		(1)		6
Total	$	4,884	$	(583)	$	(85)	$	4,216

Property on Operating Leases

Property on operating leases consists of the following (in thousands):

	Balance						Balance
	December 31,				Reclassification		June 30,
	2018		Additions		/Dispositions		2019
Transportation, rail	$	12,392	$	—	$	(62)	$	12,330
Trucks and Trailers		3,420		—		(3,333)		87
Aircraft		1,988		—		—		1,988
Manufacturing		624		—		—		624
Petro/natural gas		470		—		—		470
Materials handling		157		—		(26)		131
		19,051		—		(3,421)		15,630
Less accumulated depreciation		(15,362)		(70)		2,534		(12,898)
Total	$	3,689	$	(70)	$	(887)	$	2,732

Future Minimum Lease Payments Receivable

At June 30, 2019, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands):

	Operating
	Leases
Six months ending December 31, 2019	$	286
Year Ending December 31, 2020		410
2021		142
2022		60
2023		12
	$	910

Schedule of Useful Lives of Lease Assets

The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of June 30, 2019, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years):

Equipment category	Useful Life
Transportation, rail	35 - 50
Aircraft	20 - 30
Manufacturing	10 - 15
Petro/natural gas	10 - 15
Construction	7 - 10
Materials handling	7 - 10
Transportation, other	7 - 10

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Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2019

Related Party Transactions [Abstract]

AFS and /or Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement

During the three and six months ended June 30, 2019 and 2018, AFS and/or affiliates earned fees and billed for reimbursements of costs and expenses pursuant to the Operating Agreement as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Costs reimbursed to Managing Member and/or affiliates	$	56	$	142	$	121	$	291
Asset management fees to Managing Member and/or affiliates		28		29		52		57
	$	84	$	171	$	173	$	348

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Members' Capital (Tables)

6 Months Ended

Jun. 30, 2019

Members' Capital [Abstract]

Distributions to Other Members

Distributions to the Other Members for the three months ended June 30, 2019 and 2018 were as follows (in thousands except Units and per Unit data):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Distributions declared	$	—	$	—	$	2,236	$	3,283
Weighted average number of Units outstanding		13,971,486		13,971,486		13,971,486		13,971,486
Weighted average distributions per Unit	$	—	$	—	$	0.16	$	0.24

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Measurements [Abstract]

Estimated Fair Values of Financial Instruments

The following tables present a summary of the carrying value and fair value by level of financial instruments on the Company’s balance sheets at June 30, 2019 and December 31, 2018 (in thousands):

	Fair Value Measurements at June 30, 2019
	Carrying
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	1,460	$	1,460	$	—	$	—	$	1,460

	Fair Value Measurements at December 31, 2018
	Carrying
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	2,877	$	2,877	$	—	$	—	$	2,877

Fair Value Measurement of Impaired Assets at Fair Value on Non-recurring Basis

The following table presents the fair value measurements of impaired off- lease assets at fair value on a non-recurring basis and the level within the hierarchy in which the fair measurements fall at June 30, 2019.  There was no non-recurring impaired lease and/or off lease equipment at December 31, 2018.

			Level 1 Estimated		Level 2 Estimated		Level 3 Estimated
	June 30, 2019		Fair Value		Fair Value		Fair Value
Assets measured at fair value on a non-recurring basis:
Impaired lease and off-lease equipment	$	264	$	-	$	-	$	264

Summary of Valuation Techniques and Significant Unobservable Inputs Used

The following table summarizes the valuation techniques and significant unobservable imputes used for the Company’s non-recurring fair value adjustments categorized as Level 3 in the fair value hierarchy at June 30, 2019 and 2018.

June 30, 2019
Name	Valuation Frequency	Valuation Technique	Unobservable Inputs	Range of Input Values
Impaired off-lease Equipment	Non-recurring	Market Approach	Third Party Agents' Pricing	$0 - $8,000
			Quotes – per equipment	(total of $264,000)
			Equipment Condition	Poor to Average
June 30, 2018
Name	Valuation Frequency	Valuation Technique	Unobservable Inputs
Impaired off-lease Equipment	Non-recurring	Market Approach	Off Lease equipment was sold for
			$501 thousand in July 2018.

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Organization and Limited Liability Company Matters (Narrative) (Details) - USD ($) $ in Thousands		6 Months Ended	172 Months Ended	203 Months Ended
	Mar. 11, 2005	Jun. 30, 2019	Jun. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Business formation date		Aug. 12, 2002
Business formation State		California
Business activities, description		sale of limited liability company investment units and acquiring equipment to engage in equipment leasing, lending and sales activities
Business termination date				Dec. 31, 2022
Sale of Limited Liability Company Units, number of Units	14,059,136
Proceeds from sale of Limited Liability Company Units	$ 140,600
Repurchase of Units, number of Units			87,650
Repurchase of Units, value			$ 720
Other Members [Member]
Members capital account, Units issued		13,971,486	13,971,486	13,971,486		13,971,486
Members capital account, Units outstanding		13,971,486	13,971,486	13,971,486	13,971,486	13,971,486	13,971,486	13,971,486	13,971,486

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Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019 USD ($) segment	Dec. 31, 2018 USD ($)
Sale of investments | $	$ 0	$ 0
Equipment on operating leases, depreciation method	straight line
Number of operating segments | segment	1
Number of reportable segments | segment	1
Impairment losses on investment in securities | $	$ 11
Practical expedients package	true
Minimum [Member]
Operating leases, initial terms	36 months
Operating leases, period for non accrual status	90 days
Maximum [Member]
Operating leases, initial terms	120 months
Operating leases, period of review for impairment	90 days

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Summary of Significant Accounting Policies (Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue and Long-Lived Assets) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 520	$ 921	$ 1,054	$ 1,703
Long-lived assets	4,216		4,216		$ 4,884
Revenues [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 520	$ 921	$ 1,054	$ 1,703
Percentage of total	100.00%	100.00%	100.00%	100.00%
Long-lived Assets [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 4,216		$ 4,216		$ 4,884
Percentage of total			100.00%		100.00%
United States [Member] | Revenues [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 510	$ 881	$ 1,026	$ 1,645
Percentage of total	98.00%	96.00%	97.00%	97.00%
United States [Member] | Long-lived Assets [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 4,125		$ 4,125		$ 4,793
Percentage of total			98.00%		98.00%
Canada [Member] | Revenues [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 10	$ 40	$ 28	$ 58
Percentage of total	2.00%	4.00%	3.00%	3.00%
Canada [Member] | Long-lived Assets [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 91		$ 91		$ 91
Percentage of total			2.00%		2.00%

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Allowance for Credit Losses (Activity in Allowance for Credit Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for credit losses	$ 61	$ 66	$ 31	$ 61
Allowance For Doubtful Accounts [Member] | Operating Leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance			101	$ 16	$ 16
Provision for credit losses			31		85
Ending Balance	$ 132		$ 132		$ 101

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Equipment Under Operating Leases, Net (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Equipment Under Operating Leases, Net [Abstract]
Amortization of initial direct costs			$ 1	$ 1
Depreciation of operating lease assets	$ 48	$ 143	$ 70	333
Average estimated residual value of assets on operating leases	9.00%		9.00%		21.00%
Impairment losses on equipment	$ 281	$ 459	$ 281	$ 459
Operating leases placed in non-accrual status	$ 0		$ 0		$ 0

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Equipment Under Operating Leases, Net (Investment in Leases) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Lessor, Lease, Description [Line Items]
Balance December 31, 2018	$ 4,884
Reclassifications, Additions / Dispositions	(583)
Depreciation/ Amortization Expense or Amortization of Leases	(85)
Balance June 30, 2019	4,216
Initial direct costs, accumulated amortization	4	$ 3
Operating Leases [Member]
Lessor, Lease, Description [Line Items]
Balance December 31, 2018	3,689
Reclassifications, Additions / Dispositions	(887)
Depreciation/ Amortization Expense or Amortization of Leases	(70)
Balance June 30, 2019	2,732
Asset Held for Sale or Lease [Member]
Lessor, Lease, Description [Line Items]
Balance December 31, 2018	1,188
Reclassifications, Additions / Dispositions	304
Depreciation/ Amortization Expense or Amortization of Leases	(14)
Balance June 30, 2019	1,478
Initial Direct Cost [Member]
Lessor, Lease, Description [Line Items]
Balance December 31, 2018	7
Depreciation/ Amortization Expense or Amortization of Leases	(1)
Balance June 30, 2019	$ 6

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Equipment Under Operating Leases, Net (Property on Operating Leases) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Property Subject to or Available for Operating Lease [Line Items]
Property on operating leases, gross	$ 15,630	$ 19,051
Less accumulated depreciation	(12,898)	(15,362)
Property on operating leases, net	2,732	3,689
Additions, gross
Additions, less accumulated depreciation	(70)
Additions, net	(70)
Reclassifications or dispositions, gross	(3,421)
Reclassifications or dispositions, less accumulated depreciation	2,534
Reclassifications or dispositions, net	(887)
Transportation, Rail [Member]
Property Subject to or Available for Operating Lease [Line Items]
Property on operating leases, gross	12,330	12,392
Additions, gross
Reclassifications or dispositions, gross	(62)
Trucks and Trailers [Member]
Property Subject to or Available for Operating Lease [Line Items]
Property on operating leases, gross	87	3,420
Additions, gross
Reclassifications or dispositions, gross	(3,333)
Aircraft [Member]
Property Subject to or Available for Operating Lease [Line Items]
Property on operating leases, gross	1,988	1,988
Additions, gross
Reclassifications or dispositions, gross
Manufacturing [Member]
Property Subject to or Available for Operating Lease [Line Items]
Property on operating leases, gross	624	624
Additions, gross
Reclassifications or dispositions, gross
Petro/Natural Gas [Member]
Property Subject to or Available for Operating Lease [Line Items]
Property on operating leases, gross	470	470
Additions, gross
Reclassifications or dispositions, gross
Materials Handling [Member]
Property Subject to or Available for Operating Lease [Line Items]
Property on operating leases, gross	131	$ 157
Additions, gross
Reclassifications or dispositions, gross	$ (26)

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Equipment Under Operating Leases, Net (Future Minimum Lease Payments Receivable) (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Operating Leases
Six months ending December 31, 2019	$ 286
Year Ending December 31, 2020	410
2021	142
2022	60
2023	12
Operating leases, future minimum payments receivable, total	$ 910

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Equipment Under Operating Leases, Net (Schedule of Useful Lives of Assets) (Details)	6 Months Ended
	Jun. 30, 2019
Minimum [Member] | Transportation, Rail [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	35 years
Minimum [Member] | Aircraft [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	20 years
Minimum [Member] | Manufacturing [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	10 years
Minimum [Member] | Petro/Natural Gas [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	10 years
Minimum [Member] | Construction [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	7 years
Minimum [Member] | Materials Handling [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	7 years
Minimum [Member] | Transportation, Other [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	7 years
Maximum [Member] | Transportation, Rail [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	50 years
Maximum [Member] | Aircraft [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	30 years
Maximum [Member] | Manufacturing [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	15 years
Maximum [Member] | Petro/Natural Gas [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	15 years
Maximum [Member] | Construction [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	10 years
Maximum [Member] | Materials Handling [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	10 years
Maximum [Member] | Transportation, Other [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	10 years

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Related Party Transactions (AFS and/or Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Related Party Transactions [Abstract]
Costs reimbursed to Managing Member and/or affiliates	$ 56	$ 142	$ 121	$ 291
Asset management fees to Managing Member and/or affiliates	28	29	52	57
Related party transactions, total	$ 84	$ 171	$ 173	$ 348

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Commitments (Narrative) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Commitments [Abstract]
Commitments to purchase lease assets	$ 0

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Members' Capital (Narrative) (Details) - shares	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Other Members [Member]
Other Members Capital Account [Line Items]
Members capital account, Units issued	13,971,486		13,971,486
Members capital account, Units outstanding	13,971,486	13,971,486	13,971,486	13,971,486	13,971,486	13,971,486
Other Members [Member] | Maximum [Member]
Other Members Capital Account [Line Items]
Other Members capital account, Units authorized	15,000,000		15,000,000
Initial Members [Member]
Other Members Capital Account [Line Items]
Members capital account, Units issued	50		50

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Members' Capital (Distributions to Other Members) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Distributions declared			$ 2,236	$ 3,283
Weighted average number of Units outstanding	13,971,486	13,971,486	13,971,486	13,971,486
Other Members [Member]
Distributions declared			$ 2,236	$ 3,283
Weighted average number of Units outstanding	13,971,486	13,971,486	13,971,486	13,971,486
Weighted average distributions per Unit			$ 0.16	$ 0.24

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Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	$ 1,460	$ 2,877
Estimate of Fair Value [Member]
Financial assets:
Cash and cash equivalents	1,460	2,877
Level 1 Estimated Fair Value [Member] | Estimate of Fair Value [Member]
Financial assets:
Cash and cash equivalents	$ 1,460	$ 2,877

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Fair Value Measurements (Fair Value Measurement of Impaired Assets On Non-recurring Basis) (Details) - Nonrecurring [Member] $ in Thousands	Jun. 30, 2019 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired lease and off-lease equipment	$ 264
Level 3 Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired lease and off-lease equipment	$ 264

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Fair Value Measurements (Summary of Valuation Techniques And Significant Unobservable Inputs) (Details) - Nonrecurring [Member] - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2019
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired off-lease Equipment		$ 264,000
Level 3 Estimated Fair Value [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired off-lease Equipment		264,000
Level 3 Estimated Fair Value [Member] | Market Approach [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Proceeds from sale of off lease equipment	$ 501,000
Level 3 Estimated Fair Value [Member] | Market Approach [Member] | Third Party Agents' Pricing Quotes – per equipment [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired off-lease Equipment		$ 264,000
Level 3 Estimated Fair Value [Member] | Minimum [Member] | Market Approach [Member] | Third Party Agents' Pricing Quotes – per equipment [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired off-lease Equipment, Range of Input Values		0
Level 3 Estimated Fair Value [Member] | Maximum [Member] | Market Approach [Member] | Third Party Agents' Pricing Quotes – per equipment [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired off-lease Equipment, Range of Input Values		8,000