Investments In Direct Financing Lease

3 Months Ended

Mar. 31, 2012

Capital Leases, Net Investment in Direct Financing Leases [Abstract]

Investment in a Direct Financing Lease

The Company’s investment in a direct financing lease relates to the Company’s master lease of 27 public charter school properties. Investment in a direct financing lease, net represents estimated unguaranteed residual values of leased assets and net unpaid rentals, less related deferred income. The following table summarizes the carrying amounts of investment in a direct financing lease, net as of March 31, 2012 and December 31, 2011(in thousands):



	March 31, 2012			December 31, 2011
Total minimum lease payments receivable	$	677,876		$	683,653
Estimated unguaranteed residual value of leased assets	215,987			215,987
Less deferred income ⁽¹⁾	(658,988		)	(666,021		)
Investment in a direct financing lease, net	$	234,875		$	233,619

(1) Deferred income is net of $1.8 million of initial direct costs at March 31, 2012 and December 31, 2011.

Additionally, the Company has determined that no allowance for losses was necessary at March 31, 2012 and December 31, 2011.

The Company’s direct financing lease has expiration dates ranging from approximately 20 to 23 years. Future minimum rentals receivable on this direct financing lease at March 31, 2012 are as follows (in thousands):



	Amount
Year:
2012	$	17,563
2013	24,041
2014	24,762
2015	25,505
2016	26,270
Thereafter	559,735
Total	$	677,876

- Definition

The entire disclosure for lessor's leasing arrangements, which includes direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease.

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