RESERVES FOR CREDIT LOSSES

9 Months Ended

Dec. 31, 2014

RESERVES FOR CREDIT LOSSES [Abstract]

RESERVES FOR CREDIT LOSSES

4. RESERVES FOR CREDIT LOSSES

Activity in our reserves for credit losses for the nine months ended December 31, 2014 and 2013 were as follows (in thousands):

	Accounts Receivable			Notes Receivable		Lease- Related Receivables			Total
Balance April 1, 2014	$	1,364		$	3,364	$	1,024		$	5,752
Provision for credit losses		69			244		39			352
Write-offs and other		(228	)		-		(31	)		(259	)
Balance December 31, 2014	$	1,205		$	3,608	$	1,032		$	5,845

	Accounts Receivable			Notes Receivable			Lease- Related Receivables		Total
Balance April 1, 2013	$	1,147		$	3,137		$	845	$	5,129
Provision for credit losses		44			(57	)		140		127
Write-offs and other		(17	)		-			-		(17	)
Balance December 31, 2013	$	1,174		$	3,080		$	985	$	5,239

Our reserves for credit losses and minimum payments associated with our notes receivables and lease-related receivables disaggregated on the basis of our impairment method were as follows (in thousands):

	December 31, 2014				March 31, 2014
	Notes Receivable		Lease-Related Receivables		Notes Receivable		Lease-Related Receivables
Reserves for credit losses:
Ending balance: collectively evaluated for impairment	$	454	$	848	$	265	$	852
Ending balance: individually evaluated for impairment		3,154		184		3,099		172
Ending balance	$	3,608	$	1,032	$	3,364	$	1,024
Minimum payments:
Ending balance: collectively evaluated for impairment	$	62,729	$	82,844	$	39,869	$	81,114
Ending balance: individually evaluated for impairment		3,461		203		3,838		437
Ending balance	$	66,190	$	83,047	$	43,707	$	81,551

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

As of December 31, 2014, the age of the recorded minimum lease payments and net credit exposure associated with our investment in direct financing and sales-type leases that are past due, disaggregated based on our internally assigned credit quality ratings (“CQR”), were as follows (in thousands):

	31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total  Past Due		Current		Unbilled Minimum Lease Payments		Total Minimum  Lease Payments		Unearned Income			Non- Recourse Notes Payable			Net Credit Exposure
December 31, 2014
High CQR	$	215	$	88	$	129	$	432	$	215	$	52,339	$	52,986	$	(2,751	)	$	(17,938	)	$	32,297
Average CQR		54		14		57		125		65		29,668		29,858		(2,207	)		(14,792	)		12,859
Low CQR		-		-		-		-		-		203		203		(19	)		-			184
Total		269		102		186		557		280		82,210		83,047		(4,977	)		(32,730	)		45,340
March 31, 2014
High CQR	$	194	$	35	$	106	$	335	$	502	$	42,159	$	42,996	$	(1,890	)	$	(17,406	)	$	23,700
Average CQR		33		57		18		108		86		37,924		38,118		(3,401	)		(20,709	)		14,008
Low CQR		-		-		61		61		-		376		437		(55	)		-			382
Total		227		92		185		504		588		80,459		81,551		(5,346	)		(38,115	)		38,090

As of December 31, 2014, the age of the recorded notes receivable balance disaggregated based on our internally assigned CQR were as follows (in thousands):

	31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Unbilled Notes Receivable		Total Notes Receivable		Non- Recourse Notes Payable			Net Credit Exposure
December 31, 2014
High CQR	$	865	$	-	$	156	$	1,021	$	3,135	$	43,852	$	48,008	$	(27,024	)	$	20,984
Average CQR		21		-		-		21		81		14,619		14,721		(8,885	)		5,836
Low CQR		-		-		707		707		-		2,754		3,461		-			3,461
Total		886		-		863		1,749		3,216		61,225		66,190		(35,909	)		30,281
March 31, 2014
High CQR	$	-	$	205	$	148	$	353	$	2,317	$	30,249	$	32,919	$	(19,641	)	$	13,278
Average CQR		-		-		-		-		-		6,950		6,950		(3,491	)		3,459
Low CQR		-		-		791		791		-		3,047		3,838		-			3,838
Total		-		205		939		1,144		2,317		40,246		43,707		(23,132	)		20,575

We estimate losses on our net credit exposure to be between 0% - 5% for customers with highest CQR, as these customers are investment grade or the equivalent of investment grade. We estimate losses on our net credit exposure to be between 2% - 25% for customers with average CQR, and between 25% - 100% for customers with low CQR, which includes customers in bankruptcy.