4.	RESERVES FOR CREDIT LOSSES

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

	Accounts Receivable			Notes Receivable			Lease-Related Receivables			Total
Balance April 1, 2015	$	1,169		$	3,573		$	881		$	5,623
Provision for credit losses		(149	)		(33	)		34			(148	)
Write-offs and other		(77	)		-			-			(77	)
Balance June 30, 2015	$	943		$	3,540		$	915		$	5,398

	Accounts Receivable			Notes Receivable			Lease-Related Receivables			Total
Balance April 1, 2014	$	1,364		$	3,364		$	1,024		$	5,752
Provision for credit losses		(73	)		199			(6	)		120
Write-offs and other		(47	)		-			-			(47	)
Balance June 30, 2014	$	1,244		$	3,563		$	1,018		$	5,825

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):

	June 30, 2015				March 31, 2015
	Notes Receivable		Lease- Related Receivables		Notes Receivable		Lease- Related Receivables
Reserves for credit losses:
Ending balance: collectively evaluated for impairment	$	438	$	775	$	440	$	740
Ending balance: individually evaluated for impairment		3,102		140		3,133		141
Ending balance	$	3,540	$	915	$	3,573	$	881

Minimum payments:
Ending balance: collectively evaluated for impairment	$	69,360	$	82,290	$	56,525	$	66,255
Ending balance: individually evaluated for impairment		3,102		159		3,418		160
Ending balance	$	72,462	$	82,449	$	59,943	$	66,415

The net credit exposure for the balance evaluated individually for impairment as of June 30, 2015 was $3.2 million, $3.2 million of which is related to one customer. During fiscal year 2012, we began selling and financing various products and services to a large law firm, which filed for bankruptcy in May 2012. As of June 30, 2015, we had $3.2 million of notes and lease-related receivables from this customer and total reserves for credit losses of $3.2 million, which represented our estimated probable loss. As of March 31, 2015, we had $3.2 million of notes and lease-related receivables from this customer and total reserves for credit losses of $3.2 million. The note and lease receivables associated with this customer are on non-accrued status.

The age of the recorded minimum lease payments and net credit exposure associated with our investment in direct financing and sales-type leases that are past due disaggregated based on our internally assigned credit quality rating (“CQR”) were as follows as of June 30, 2015 and March 31, 2015 (in thousands):

	31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Unbilled Minimum Lease Payments		Total Minimum Lease Payments		Unearned Income			Non- Recourse Notes Payable			Net Credit Exposure

June 30, 2015

High CQR	$	526	$	175	$	125	$	826	$	1,298	$	55,351	$	57,475	$	(3,454	)	$	(25,881	)	$	28,140
Average CQR		2		46		43		91		114		24,610		24,815		(2,002	)		(10,754	)		12,059
Low CQR		10		-		-		10		-		149		159		(19	)		-			140
Total	$	538	$	221	$	168	$	927	$	1,412	$	80,110	$	82,449	$	(5,475	)	$	(36,635	)	$	40,339

March 31, 2015

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

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

	31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Unbilled Notes Receivable		Total Notes Receivable		Non-Recourse Notes Payable			Net Credit Exposure

June 30, 2015

High CQR	$	52	$	58	$	1,894	$	2,004	$	3,281	$	49,185	$	54,470	$	(32,944	)	$	21,526
Average CQR		25		36		-		61		656		14,173		14,890		(9,367	)		5,523
Low CQR		-		-		656		656		-		2,446		3,102		-			3,102
Total	$	77	$	94	$	2,550	$	2,721	$	3,937	$	65,804	$	72,462	$	(42,311	)	$	30,151

March 31, 2015

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

We estimate losses on our net credit exposure to be between 0% - 5% for customers with highest CQR, as these customers are investment grade or the equivalent of investment grade. We estimate losses on our net credit exposure to be between 2% - 15% for customers with average CQR, and between 15% - 100% for customers with low CQR, which includes customers in bankruptcy.