Investments In Direct Financing Lease

3 Months Ended

Mar. 31, 2014

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 as of March 31, 2014 and December 31, 2013, with affiliates of Imagine Schools, Inc. (Imagine). 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, 2014 and December 31, 2013 (in thousands):



	March 31, 2014			December 31, 2013
Total minimum lease payments receivable	$	625,910		$	633,384
Estimated unguaranteed residual value of leased assets	214,706			215,207
Less deferred income ⁽¹⁾	(597,711		)	(606,379		)
Investment in a direct financing lease, net	$	242,905		$	242,212

⁽¹⁾Deferred income is net of $1.7 million of initial direct costs at March 31, 2014 and December 31, 2013.

Additionally, the Company has determined that no allowance for losses was necessary at March 31, 2014 and December 31, 2013.

The Company’s direct financing lease has expiration dates ranging from approximately 18 to 21 years. Future minimum rentals receivable on this direct financing lease at March 31, 2014 are as follows (in thousands):



	Amount
Year:
2014	$	18,474
2015	25,282
2016	26,040
2017	26,821
2018	27,626
Thereafter	501,667
Total	$	625,910

As further discussed in Note 17, on April 2, 2014, the Company completed the sale of four public charter school properties located in Florida and leased to Imagine for net proceeds of $46.1 million.