5. Investments in equipment and leases, net:

The Company’s investment in leases consists of the following (in thousands):


		Balance December 31, 2012		Reclassifications & Additions / Dispositions		Depreciation/ Amortization Expense or Amortization of Leases		Balance December 31, 2013
Net investment in operating leases	$	6,230	$	(1,361)	$	(638)	$	4,231
Net investment in direct financing leases		100		(52)		(48)		-
Assets held for sale or lease, net		629		699		(38)		1,290
Total	$	6,959	$	(714)	$	(724)	$	5,521

Impairment of investments in leases and assets held for sale or lease:

Management periodically reviews the carrying values of its assets on leases and assets held for lease or sale. Impairment losses are recorded as an adjustment to the net investment in operating leases. No impairment losses were recorded during 2013 and 2012.

The Company utilizes a straight line depreciation method over the term of the equipment lease for equipment on operating leases currently in its portfolio. Depreciation expense on the Company’s equipment totaled $676 thousand and $1.1 million for the respective years ended December 31, 2013 and 2012.

All of the remaining property on lease was acquired during the years 1999 through 2001.

Operating leases:

Property on operating leases consists of the following (in thousands):


		Balance December 31, 2012		Additions		Reclassifications or Dispositions		Balance December 31, 2013
Containers	$	19,380	$	-	$	(3,506)	$	15,874
Transportation, rail		13,125		-		(1,772)		11,353
Marine vessel		4,793		-		(4,793)		-
Other		640		-		-		640
		37,938		-		(10,071)		27,867
Less accumulated depreciation		(31,708)		(638)		8,710		(23,636)
Total	$	6,230	$	(638)	$	(1,361)	$	4,231

The average estimated residual value for assets on operating leases was 11% and 10% of the assets’ original cost at December 31, 2013 and 2012, respectively.

The Company earns revenues from its containers, marine vessel and certain other assets based on utilization of such assets or through fixed term leases. Contingent rentals (i.e., short-term, operating charter hire payments) and the associated expenses are recorded when earned and/or incurred. The revenues associated with these rentals are included as a component of operating lease revenues, and totaled $1.8 million and $2.3 million for the years ended December 31, 2013 and 2012, respectively.

As of December 31, 2013 and 2012, the Company had no operating leases in non-accrual status.

Direct financing leases:

As of December 31, 2013, the Company had no investment in direct financing leases, as its remaining finance lease matured on July 1, 2013. By comparison, as of December 31, 2012, the net investment in direct financing leases amounted to $100 thousand and consisted primarily of railcars and manufacturing equipment.

At December 31, 2013, the aggregate amount of future lease payments is as follows (in thousands):


		Operating Leases
Year ending December 31, 2014	$	1,200
2015		572
2016		284
2017		267
2018		78
Thereafter		6
	$	2,407