4.	RESERVES FOR CREDIT LOSSES

Activity in our reserves for credit losses for the nine months ended December 31, 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		12			7		(50	)		(31	)
Write-offs and other		(119	)		-		-			(119	)
Balance December 31, 2015	$	1,062		$	3,580	$	831		$	5,473

	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

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, 2015				March 31, 2015
	Notes Receivable		Lease- Related Receivables		Notes Receivable		Lease- Related Receivables
Reserves for credit losses:
Ending balance: collectively evaluated for impairment	$	427	$	708	$	440	$	740
Ending balance: individually evaluated for impairment		3,153		123		3,133		141
Ending balance	$	3,580	$	831	$	3,573	$	881

Minimum payments:
Ending balance: collectively evaluated for impairment	$	53,109	$	74,409	$	56,525	$	66,255
Ending balance: individually evaluated for impairment		3,202		142		3,418		160
Ending balance	$	56,311	$	74,551	$	59,943	$	66,415

The net credit exposure for the balance evaluated individually for impairment as of December 31, 2015 was $3.3 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 March 31, and December 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, which represented our estimated probable loss. The note and lease receivables associated with this customer are on non-accrual status.

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

December 31, 2015

High CQR	$	175	$	78	$	422	$	675	$	935	$	54,323	$	55,933	$	(3,664	)	$	(23,362	)	$	28,907
Average CQR		50		13		66		129		79		18,268		18,476		(1,394	)		(6,566	)		10,516
Low CQR		-		-		142		142		-		-		142		(19	)		-			123
Total	$	225	$	91	$	630	$	946	$	1,014	$	72,591	$	74,551	$	(5,077	)	$	(29,928	)	$	39,546

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 December 31, 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

December 31, 2015

High CQR	$	837	$	585	$	2,253	$	3,675	$	252	$	30,416	$	34,343	$	(20,690	)	$	13,653
Average CQR		265		-		174		439		97		18,230		18,766		(11,536	)		7,230
Low CQR		-		-		3,102		3,102		-		100		3,202		-			3,202
Total	$	1,102	$	585	$	5,529	$	7,216	$	349	$	48,746	$	56,311	$	(32,226	)	$	24,085

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.