Note 8 - Net Investment in Leases

9 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Leases of Lessor Disclosure [Text Block]

NOTE

8

– NET INVESTMENT IN LEASES

Net investment in leases consists of the following:

	March 31, 2017			June 30, 2016
	(in thousands)
Minimum lease payments receivable	$	195,694		$	248,527
Estimated residual value		7,365			10,871
Less unearned income		(12,992	)		(19,434	)
Net investment in leases before allowances		190,067			239,964
Less allowance for lease losses		(2,231	)		(2,228	)
Less valuation allowance for estimated residual value		(62	)		(62	)
Net investment in leases	$	187,774		$	237,674

The minimum lease payments receivable and estimated residual value are discounted using the internal rate of return method related to each specific capital lease. Unearned income includes the offset of initial direct costs of

$2.6

million at

March

31,

2017

and at

June

30,

2016.