5. Long-term Obligations

Capital Leases

The Company incurs capital lease obligations for student computers under a non-revolving lease line of credit with PNC Equipment Finance, LLC. As of March 31, 2018 and June 30, 2017, the outstanding balance of capital leases under the current and former lease lines of credit (as discussed in more detail below) was $27.7 million and $21.9 million, respectively, with lease interest rates ranging from 1.95% to 3.12%. Individual leases under the lease lines of credit include 36-month payment terms with a $1 purchase option at the end of each lease term. The Company has pledged the assets financed to secure the outstanding leases. The gross carrying value of leased student computers as of March 31, 2018 and June 30, 2017 was $42.8 million and $39.1 million, respectively. The accumulated depreciation of leased student computers as of March 31, 2018 and June 30, 2017 was $24.9 million and $25.1 million, respectively.

The Company had $24.2 million and $31.9 million of remaining availability under its lease line of credit as of March 31, 2018 and June 30, 2017, respectively. Interest on unpaid principal under the lease line of credit is at a fluctuating rate of LIBOR plus 1.2%.

The following is a summary as of March 31, 2018 of the present value of the net minimum lease payments on capital leases under the Company’s commitments:


As of June 30,	Capital Leases
	(in thousands)
2018 (remaining three months)	$	3,840
2019		13,440
2020		7,997
2021		3,368
Total minimum payments		28,645
Less amount representing interest (imputed weighted average capital lease interest rate of 2.74%)		(935)
Net minimum payments		27,710
Less current portion		(13,727)
Present value of minimum payments, less current portion	$	13,983