Investments In Direct Financing Lease

3 Months Ended

Mar. 31, 2016

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

Investments in a Direct Financing Lease

Investment in a Direct Financing Lease

The Company’s investment in a direct financing lease relates to the Company’s master lease of 21 public charter school properties as of March 31, 2016 and December 31, 2015, 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, 2016 and December 31, 2015 (in thousands):

	March 31, 2016			December 31, 2015
Total minimum lease payments receivable	$	434,756		$	439,646
Estimated unguaranteed residual value of leased assets	162,669			162,669
Less deferred income (1)	(405,705		)	(411,435		)
Investment in a direct financing lease, net	$	191,720		$	190,880

⁽¹⁾ Deferred income is net of $1.4 million of initial direct costs at March 31, 2016 and December 31, 2015.

Additionally, the Company determined that no allowance for losses was necessary at March 31, 2016 and December 31, 2015.

The Company’s direct financing lease has expiration dates ranging from approximately 16 to 19 years. Future minimum rentals receivable on this direct financing lease at March 31, 2016 are as follows (in thousands):

	Amount
Year:
2016	$	14,897
2017	20,380
2018	20,992
2019	21,621
2020	22,270
Thereafter	334,596
Total	$	434,756