Investments In Direct Financing Lease

3 Months Ended

Mar. 31, 2017

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 12 public charter school properties as of March 31, 2017 and December 31, 2016, with affiliates of Imagine Schools, Inc. 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, 2017 and December 31, 2016 (in thousands):

	March 31, 2017			December 31, 2016
Total minimum lease payments receivable	$	213,065		$	215,753
Estimated unguaranteed residual value of leased assets	85,247			85,247
Less deferred income (1)	(195,217		)	(198,302		)
Investment in a direct financing lease, net	$	103,095		$	102,698

⁽¹⁾ Deferred income is net of $1.3 million of initial direct costs at March 31, 2017 and December 31, 2016.

Additionally, the Company determined that no allowance for losses was necessary at March 31, 2017 and December 31, 2016.

The Company’s direct financing lease has expiration dates ranging from approximately 15 to 18 years. Future minimum rentals receivable on this direct financing lease at March 31, 2017 are as follows (in thousands):

	Amount
Year:
2017	$	8,168
2018	11,182
2019	11,518
2020	11,863
2021	12,219
Thereafter	158,115
Total	$	213,065