XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 31, 2018
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Entity Registrant Name	ATEL CAPITAL EQUIPMENT FUND X LLC
Entity Central Index Key	0001186258
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Units Outstanding		13,971,486

XML

Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
ASSETS
Cash and cash equivalents	$ 1,367	$ 4,035
Accounts receivable, net	120	156
Investment in securities	55	55
Investments in equipment and leases, net	5,963	6,875
Prepaid expenses and other assets	98	118
Total assets	7,603	11,239
Accounts payable and accrued liabilities:
Managing Member		11
Due to affiliates	16	38
Other	1,083	1,267
Deposits due lessees	6	6
Non-recourse debt		83
Unearned operating lease income	40	58
Total liabilities	1,145	1,463
Commitments and contingencies
Members' capital:
Managing Member
Other Members	6,458	9,776
Total Members' capital	6,458	9,776
Total liabilities and Members' capital	$ 7,603	$ 11,239

XML

Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Leasing and lending activities:
Operating leases	$ 606	$ 624	$ 1,244	$ 1,257
Direct financing leases		4		11
Gain on sales of lease assets	297	108	441	326
Other	18	4	18	13
Total revenues	921	740	1,703	1,607
Expenses:
Depreciation of operating lease assets	143	245	333	522
Asset management fees to Managing Member and/or affiliates	29	26	57	54
Costs reimbursed to Managing Member and/or affiliates	142	148	291	298
Amortization of initial direct costs		1	1	1
Other management fees	7	7	12	14
Interest expense		1		3
Impairment losses on equipment	459		459
Railcar maintenance	54	92	76	129
sdvxzZvxc	66	12	61	15
Professional fees	24	47	93	113
Franchise fees and taxes	(51)	106	(119)	146
Outside services	26	35	70	73
Insurance	10	9	20	19
Printing and photocopying		6	6	15
Storage fees	66	22	82	40
Other	12	34	30	63
Total operating expenses	987	791	1,472	1,505
Net income (loss)	(66)	(51)	231	102
Net income (loss):
Managing Member		227		510
Other Members	(66)	(278)	231	(408)
Net income (loss)	$ (66)	$ (51)	$ 231	$ 102
Net loss per Limited Liability Company Unit (Other Members)		$ (0.02)	$ 0.02	$ (0.03)
Weighted average number of Units outstanding	13,971,486	13,971,486	13,971,486	13,971,486

XML

Statements of Changes in Members' Capital - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Beginning Balance		$ 9,776	$ 15,792	$ 15,792
Distributions to Other Members		(3,283)	(6,287)	(6,287)
Distributions to Managing Member		(266)		(510)
Net income (loss)	$ (66)	231	$ 102	781
Ending Balance	$ 6,458	$ 6,458		$ 9,776
Other Members [Member]
Beginning Balance (in units)		13,971,486	13,971,486	13,971,486
Beginning Balance		$ 9,776	$ 15,792	$ 15,792
Distributions to Other Members		(3,283)		(6,287)
Net income (loss)		$ (35)		$ 271
Ending Balance (in units)	13,971,486	13,971,486		13,971,486
Ending Balance	$ 6,458	$ 6,458		$ 9,776
Managing Member [Member]
Distributions to Managing Member		(266)		(510)
Net income (loss)		$ 266		$ 510

XML

Statements of Changes in Members' Capital (Parenthetical) - $ / shares	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Statements of Changes in Members' Capital [Abstract]
Weighted average distributions per Unit	$ 0.20	$ 0.24	$ 0.45	$ 0.45

XML

Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Operating activities:
Net income (loss)	$ (66)	$ (51)	$ 231	$ 102	$ 781
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Gain on sales of lease assets	(297)	(108)	(441)	(326)
Depreciation of operating lease assets	143	245	333	522
Amortization of initial direct costs		1	1	1
Impairment losses on equipment	459		459
sdvxzZvxc	66	12	61	15
Changes in operating assets and liabilities:
Accounts receivable	41	(2)	(25)	61
Prepaid expenses and other assets	11	8	20	18
Accounts payable, Managing Member and affiliates	(59)	(43)	(33)	19
Accounts payable, other	(68)	35	(184)	(52)
Deposits due lessees		2		2
Unearned operating lease income	(22)	(16)	(18)	15
Net cash provided by operating activities	208	83	404	377
Investing activities:
Proceeds from sales of lease assets	369	134	560	730
Principal payments received on direct financing leases		5		12
Net cash provided by investing activities	369	139	560	742
Financing activities:
Repayments under non-recourse debt		(62)	(83)	(123)
Net cash used in financing activities		(62)	(3,632)	(3,899)
Net increase (decrease) in cash and cash equivalents	577	160	(2,668)	(2,780)
Cash and cash equivalents at beginning of period	790	5,740	4,035	8,680	8,680
Cash and cash equivalents at end of period	1,367	5,900	1,367	5,900	4,035
Supplemental disclosures of cash flow information:
Cash paid during the period for interest		1		3
Cash paid during the period for taxes	$ 12	$ 105	16	161
Managing Member [Member]
Operating activities:
Net income (loss)			266		510
Financing activities:
Distributions to Members			(266)	(283)
Other Members [Member]
Operating activities:
Net income (loss)			(35)		$ 271
Financing activities:
Distributions to Members			$ (3,283)	$ (3,493)

XML

Organization and Limited Liability Company Matters

6 Months Ended

Jun. 30, 2018

Organization and Limited Liability Company Matters [Abstract]

Organization and Limited Liability Company Matters

1.Organization and Limited Liability Company matters:

ATEL Capital Equipment Fund X, LLC (the “Company” or the “Fund”) was formed under the laws of the State of California on August 12, 2002 for the purpose of engaging in the sale of limited liability company investment units and acquiring equipment to engage in equipment leasing, lending and sales activities, primarily in the United States. The Managing Member or Manager of the Company is ATEL Financial Services, LLC (“AFS”), a California limited liability company. The Company may continue until December 31, 2022.  

As of March 11, 2005, subscriptions for 14,059,136 Units ($140.6 million) had been received, of which 87,650 Units ($720 thousand) were subsequently rescinded or repurchased (net of distributions paid and allocated syndication costs, as applicable) by the Company through June 30, 2018. As of June 30, 2018,  13,971,486 Units remain issued and outstanding.

The Company is governed by the Limited Liability Company Operating Agreement (“Operating Agreement”), as amended. On January 1, 2012, the Company commenced liquidation phase activities pursuant to the guidelines of the Operating Agreement. Pursuant to the terms of the Operating Agreement, AFS receives compensation and reimbursements for services rendered on behalf of the Company (See Note 5). The Company is required to maintain reasonable cash reserves for working capital, for the repurchase of Units and for contingencies. The repurchase of Units is solely at the discretion of AFS.

These unaudited interim financial statements should be read in conjunction with the financial statements and notes thereto contained in the report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission.

XML

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.Summary of significant accounting policies:

Basis of presentation:

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the full year.

Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations.

Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data.

In preparing the accompanying unaudited financial statements, the Managing Member has reviewed events that have occurred after June 30, 2018, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, or adjustments thereto.

Use of estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes, and determination of the allowances for doubtful accounts.

Segment reporting:

The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in onereportable operating segment in the United States.

The primary geographic region in which the Company sought leasing opportunities was North America. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the six months ended June 30, 2018 and 2017, and long-lived tangible assets as of June 30, 2018 and December 31, 2017 (dollars in thousands):

	Six Months Ended June 30,
	2018		% of Total		2017		% of Total
Revenue
United States	$	1,645		97%	$	1,580		98%
Canada		58		3%		27		2%
Total	$	1,703		100%	$	1,607		100%
	As of June 30,				As of December 31,
	2018		% of Total		2017		% of Total
Long-lived assets
United States	$	5,872		98%	$	6,784		99%
Canada		91		2%		91		1%
Total	$	5,963		100%	$	6,875		100%

Investment in securities:

From time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements.

Purchased securities

Purchased securities registered for public sale are carried at fair value. Such securities with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company`s results of operations. The Company`s investment securities that do not have readily determinable fair values are measured at cost minus impairment, and adjusted for changes in observable prices. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. Based upon the Company’s review of its portfolio, a fair value of nominal value was charged to operations for the respective three and six months ended June 30, 2018, and no fair value adjustment was recorded for the three and six months ended June 30, 2017. There were no investment securities sold or disposed of during the three and six months ended June 30, 2018 and 2017.

Warrants

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet as determined by the Managing Member. The fair value of the warrants were nominal at June 30, 2018 and December 31, 2017. There were no unrealized gains or losses during the three and six months ended June 30, 2018 and 2017.There were no exercises of warrants, net or otherwise, during the three and six months ended June 30, 2018 and 2017.

Per Unit data:

The Company issues only one class of Units, none of which are considered dilutive. Net income (loss) and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the period.

Fair value:

Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows:

Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, generally on a national exchange.

Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market.

Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company's own estimates of assumptions that market participants would use in pricing the asset or liability.

The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, information from third party remarketing agents, third party appraisals of collateral and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment, notes receivable and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources.

Recent accounting pronouncements:

In August 2016,the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-15 — Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 addresses specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. This guidance is effective for the Company beginning on January 1, 2018. The adoption of ASU 2016-15 did not have a material impact on its financial statements and disclosures.

In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. Management is currently evaluating the standard and expects the Update may potentially result in an increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments.

In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new standard will require lessees to recognize lease assets and lease liabilities arising from operating leases with lease terms greater than 12 months in the statement of financial position. Lessor accounting per ASU 2016-02 is mostly unchanged from the previous lease accounting under GAAP. Certain changes were made to the lessor accounting guidance in order to align the lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Similar to the previous guidance, lessors will classify leases as operating, direct financing, or sales-type. Lessors in operating leases will continue to recognize the underlying asset and recognize income on a straight-line basis. Lessors determine whether a lease is a sale of the underlying asset based on whether the lessee effectively obtains control of the underlying assets. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. While early adoption is permitted, the Company does not expect to elect that option. The Company expects to adopt the guidance in the first quarter 2019 using the modified retrospective method. Management is currently evaluating the impact of this standard on the financial statements and its operational and related disclosure requirements, including the impact on the Company’s current lease portfolio from a lessor perspective. As part of the adoption of the standard, the Company has selected and is in the process of implementing new lease accounting software. The Company is in the process of identifying and designing appropriate changes to its business processes, systems and controls to support the new standard. Given the limited changes to lessor accounting, Management does not expect material changes to recognition or measurement.

In July 2018, the FASB issued Accounting Standards Update 2018-11, Leases (Topic 842) Targeted Improvements (“ASU 2018-11”).  The new standard provides a new transition method and practical expedient to simplify the application of the new leasing standard. Under the new transition method, comparative periods presented in the financial statements in the period of adoption will not need to be restated.  Instead, a Company would initially apply the new lease requirements at the effective date, and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company would continue to report comparative periods presented in the financial statements in the period of adoption under current GAAP and provide the applicable required disclosures for such periods. The new practical expedient allows lessors to avoid separating lease and associated nonlease components within a contract if certain criteria are met.  If elected, lessors will be able to aggregate nonlease components that otherwise would be accounted for under the new revenue standard with the associated lease component if the following conditions are met (1) the timing and pattern of transfer of the nonlease component and the associated lease component are the same and (2) the stand-alone lease component would be classified as an operating lease if accounted for separately. For entities that have not adopted Topic 842 before the issuance of this Update, the effective date and transition requirements for the amendments in this Update related to separating components of a contract are the same as the effective date and transition requirements in Update 2016-02. The practical expedient may be elected either in the first reporting period following the issuance of this Update or at the original effective date of Topic 842 for that entity. The practical expedient may be applied either retrospectively or prospectively. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements.

In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The new standard provides guidance related to accounting for equity investments and financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (v) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance is effective for the Company beginning on January 1, 2018. The adoption of ASU 2016-01 did have an impact on its financial statements and disclosures. The Company’s investment securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company's results of operations. These investments are valued based on their quoted market prices. The Company elected to record equity investments without readily determinable fair values at cost, less impairment, and adjusted for changes in observable prices.  Any changes in the basis of these equity investments are reported in current earnings.

In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. This guidance is effective for the Company beginning on January 1, 2018. Management’s evaluation of the impact of such adoption on the financial statements of the Company indicated that such impact was immaterial as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues since leases are not included within the scope of Topic 606.

XML

Allowance for Credit Losses

6 Months Ended

Jun. 30, 2018

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses

3.  Allowance for credit losses:

The Company’s allowance for credit losses totaled $77 thousand and $16 thousand at June 30, 2018 and December 31, 2017, respectively. All of such allowance were related to delinquent operating lease receivables.

XML

Investments in Equipment and Leases, Net

6 Months Ended

Jun. 30, 2018

Investments in Equipment and Leases, Net [Abstract]

Investment in Equipment and Leases, Net

4.  Investment in equipment and leases, net:

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

			Reclassifications,		Depreciation Amortization
	Balance		Additions /		Expense or		Balance
	December 31,		Dispositions and		Amortization		June 30,
	2017		Impairment losses		of Leases		2018
Net investment in operating leases	$	4,372	$	(104)	$	(333)	$	3,935
Assets held for sale or lease, net		2,494		(475)		-		2,019
Initial direct costs, net of accumulated   amortization of $3 at June 30, 2018 and $5 at December 31, 2017		9		-		-		9
Total	$	6,875	$	(579)	$	(333)	$	5,963

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

Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the Company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract, if any. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances.

As a result of these reviews, management deemed that impairment losses existed; the Company recorded $459 thousand of impairment losses on equipment during both the three and six months ended June 30, 2018.

The Company utilizes a straight line depreciation method for equipment in all of the categories currently in its portfolio of operating lease transactions. Depreciation expense on the Company’s equipment was $143 thousand and $245 thousand for the respective three months ended June 30, 2018 and 2017, and was $333 thousand and $522 thousand for the respective six months ended June 30, 2018 and 2017. Initial direct costs amortization expense related to the Company’s operating leases totaled $0 and $1 thousand for the respective three months ended June 30, 2018 and 2017. The Company recorded initial direct cost amortization of $1 thousand for both of the six months ended June 30, 2018 and 2017.

All of the remaining property on lease was acquired during the years 2005 through 2011.

Operating leases:

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

	Balance						Balance
	December 31,				Reclassifications or		June 30,
	2017		Additions		Dispositions		2018
Transportation, rail	$	13,719	$	-	$	(1,416)	$	12,303
Transportation, other		3,491		-		(70)		3,421
Aircraft		1,988		-		-		1,988
Construction		799		-		-		799
Manufacturing		624		-		-		624
Petro/natural gas		470		-		-		470
Materials handling		402		-		(146)		256
		21,493		-		(1,632)		19,861
Less accumulated depreciation		(17,121)		(333)		1,528		(15,926)
Total	$	4,372	$	(333)	$	(104)	$	3,935

The average estimated residual value for assets on operating leases was18% and23% of the assets’ original cost at June 30, 2018 and December 31, 2017, respectively. There were no operating leases placed in non-accrual status as of the same dates.

At June 30, 2018, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands):

		Operating Leases
Six months ending December 31, 2018	$	591
Twelve months ending December 31, 2019		614
2020		315
2021		90
2022		38
2023		2
	$	1,650

The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of June 30, 2018, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years):

Equipment category	Useful Life
Transportation, rail	35 - 40
Aircraft	20 - 30
Manufacturing	10 - 15
Petro/natural gas	10 - 15
Construction	7 - 10
Materials handling	7 - 10
Transportation, other	7 - 10

XML

Related Party Transactions

6 Months Ended

Jun. 30, 2018

Related Party Transactions [Abstract]

Related Party Transactions

5.Related party transactions:

The terms of the Operating Agreement provide that AFS and/or affiliates are entitled to receive certain fees for equipment management and resale and for management of the Company.

The Operating Agreement allows for the reimbursement of costs incurred by AFS in providing administrative services to the Company. Administrative services provided include Company accounting, finance/treasury, investor relations, legal counsel and lease and equipment documentation. AFS is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of equipment. The Company would be liable for certain future costs to be incurred by AFS to manage the administrative services provided to the Company.

Each of ATEL Leasing Corporation (“ALC”) and AFS is a wholly-owned subsidiary of ATEL Capital Group and performs services for the Company. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; investor relations, communications services and general administrative services for the Company are performed by AFS.

Cost reimbursements to the Managing Member are based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as total assets, number of investors or contributed capital based upon the type of cost incurred.

The Fund’s Operating Agreement places an annual limit and a cumulative limit for cost reimbursements to AFS and/or affiliates. Any reimbursable costs incurred by AFS and/or affiliates during the year exceeding the annual and/or cumulative limits cannot be reimbursed in the current year, though such costs may be recovered in future years to the extent of the cumulative limit. As of June 30, 2018, the Company has not exceeded the annual and/or cumulative limitations discussed above.

During the three and six months ended June 30, 2018 and 2017, AFS and/or affiliates earned fees and billed for reimbursements of costs and expenses pursuant to the Operating Agreement as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Costs reimbursed to Managing Member and/or affiliates	$	142	$	148	$	291	$	298
Asset management fees to Managing Member and/or affiliates		29		26		57		54
	$	171	$	174	$	348	$	352

XML

Non-Recourse Debt

6 Months Ended

Jun. 30, 2018

Non-Recourse Debt [Abstract]

Non-Recourse Debt

6.Non-recourse debt:

At June 30, 2018, all of the Company’s outstanding non-recourse debt had been fully paid. At December 31, 2017, non-recourse debt consisted of a note payable to a financial institution, maturing in 2018. The note was due in monthly installments. Interest on the note was at a fixed rate of 1.97%. The note was secured by assignments of lease payments and pledges of assets. As of December 31, 2017, gross operating lease rentals totaled approximately $83 thousand over the remaining lease terms; and the carrying value of the pledged assets was $417thousand.

The non-recourse debt did not contain any material financial covenants. The debt was secured by a specific lien granted by the Company to the non-recourse lenders on (and only on) the discounted lease transactions. The lenders had recourse only to the following collateral: the leased equipment; the related lease chattel paper; the lease receivables; and proceeds of the foregoing items. The non-recourse obligation was payable solely out of the respective specific security and the Company did not guarantee (nor was the Company otherwise contractually responsible for) the payment of the non-recourse debt as a general obligation or liability of the Company. Although the Company did not have any direct or general liability in connection with the non-recourse debt apart from the security granted, the Company was directly and generally liable and responsible for certain representations, warranties, and covenants made to the lenders, such as warranties as to genuineness of the transaction parties' signatures, as to the genuineness of the respective lease chattel paper or the transaction as a whole, or as to the Company's good title to or perfected interest in the secured collateral, as well as similar representations, warranties and covenants typically provided by non-recourse borrowers and customary in the equipment finance industry, and were viewed by such industry as being consistent with non-recourse discount financing obligations. Accordingly, as there were no financial covenants or ratios imposed on the Company in connection with the non-recourse debt, the Company had determined that there were no material covenants with respect to the non-recourse debt that warrant footnote disclosure.

XML

Commitments

6 Months Ended

Jun. 30, 2018

Commitments [Abstract]

Commitments

7.   Commitments:

At June 30, 2018, there were no commitments to purchase lease assets or fund investments in notes receivable.

XML

Members' Capital

6 Months Ended

Jun. 30, 2018

Members' Capital [Abstract]

Members' Capital

8.  Members’ capital:

Units issued and outstanding were 13,971,486 at both June 30, 2018 and December 31, 2017. The Company was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial Members (50 Units). The Company ceased offering Units on March 11, 2005.

Distributions to the Other Members for the three and six months ended June 30, 2018 and 2017 were as follows (in thousands except Units and per Unit data):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Distributions declared	$	-	$	2,794	$	3,283	$	6,287
Weighted average number of Units outstanding		13,971,486		13,971,486		13,971,486		13,971,486
Weighted average distributions per Unit	$	-	$	0.20	$	0.24	$	0.45

XML

Fair Value Measurements

6 Months Ended

Jun. 30, 2018

Fair Value Measurements [Abstract]

Fair Value Measurements

9.Fair value measurements:

Under applicable accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

At June 30, 2018, the Company’s warrants and investment securities were measured on a recurring basis.

At December 31, 2017, only the Company’s warrants were measured on a recurring basis.

The fair value measurement methodologies are as follows:

Warrants (recurring)

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried on the balance sheet at an estimated fair value at the end of the period. The valuation of the warrants was determined using a Black-Scholes formulation of value based upon the stock price(s), the exercise price(s), the volatility of comparable venture companies, time to maturity and a risk free interest rate for the term(s) of the warrant exercise(s). As of June 30, 2018 and December 31, 2017, the calculated fair values of the Fund’s warrant portfolio were deemed nominal.

Investment in securities (recurring)

The Company’s investment in securities registered for public sale that have readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company's results of operations.  The Company’s investments in publicly traded investment securities are valued based on their quoted market prices. At June 30, 2018, the calculated fair value of these investments in securities were deemed nominal.

Impaired lease and/or off-lease equipment (non-recurring)

During both the three and six months ended June 30, 2018, the Company determined there was an impairment adjustment to lease equipment totaling $384 thousand. When the Company deems certain lease equipment (assets) to be impaired, the Company will record a fair value adjustment to reduce the cost basis of the equipment.

When fair value adjustments are implemented, they are on a non-recurring basis. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of impaired lease assets were classified within Level 1 of the valuation hierarchy as the data sources utilized for the valuation of such assets reflect significant inputs that are observable in the market. Such valuation utilizes a market approach technique and uses inputs that reflect the sales price of the assets that were subsequently sold in July 2018.

The following tables summarize the valuation technique and significant observable input used for the Company’s nonrecurring fair value calculation categorized as Level 1 in the fair value hierarchy at June 30, 2018:

June 30, 2018
Name	Valuation Frequency	Valuation Technique	Unobservable Inputs
Impaired off-lease   Equipment	Non-recurring	Market Approach	Off lease equipment was sold for $501 thousand in July 2018

The following disclosure of the estimated fair value of financial instruments is made in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification. Fair value estimates, methods and assumptions, set forth below for the Company’s financial instruments, are made solely to comply with the requirements of the Financial Instruments Topic and should be read in conjunction with the Company’s financial statements and related notes.

The Company has determined the estimated fair value amounts by using market information and valuation methodologies that it considers appropriate and consistent with the fair value accounting guidance. Considerable judgment is required to interpret market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

Cash and cash equivalents

The recorded amounts of the Company’s cash and cash equivalents approximate fair value because of the liquidity and short-term maturity of these instruments.

Non-recourse debt

The fair value of the Company’s non-recourse debt is estimated using discounted cash flow analyses, based upon current market borrowing rates for similar types of borrowing arrangements.

Commitments and Contingencies

Management has determined that no recognition for the fair value of the Company’s loan commitments is necessary because their terms are made on a market rate basis and require borrowers to be in compliance with the Company’s credit requirements at the time of funding.

The fair value of contingent liabilities (or guarantees) is not considered material because management believes there has been no event that has occurred wherein a guarantee liability has been incurred or will likely be incurred.

The following tables present a summary of the carrying value and fair value by level of financial instruments on the Company’s balance sheets at June 30, 2018 and December 31, 2017 (in thousands):

		Fair Value Measurements at June 30, 2018
		Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	1,367	$	1,367	$	-	$	-	$	1,367

		Fair Value Measurements at December 31, 2017
		Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	4,035	$	4,035	$	-	$	-	$	4,035
Financial liabilities:
Non-recourse debt		83		-		-		83		83

XML

Summary of Significant Accounting Policies (Policy)

6 Months Ended

Jun. 30, 2018

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of presentation:

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the full year.

Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations.

Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data.

In preparing the accompanying unaudited financial statements, the Managing Member has reviewed events that have occurred after June 30, 2018, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, or adjustments thereto.

Use of Estimates

Use of estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes, and determination of the allowances for doubtful accounts.

Segment Reporting

Segment reporting:

The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in onereportable operating segment in the United States.

The primary geographic region in which the Company sought leasing opportunities was North America. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the six months ended June 30, 2018 and 2017, and long-lived tangible assets as of June 30, 2018 and December 31, 2017 (dollars in thousands):

	Six Months Ended June 30,
	2018		% of Total		2017		% of Total
Revenue
United States	$	1,645		97%	$	1,580		98%
Canada		58		3%		27		2%
Total	$	1,703		100%	$	1,607		100%
	As of June 30,				As of December 31,
	2018		% of Total		2017		% of Total
Long-lived assets
United States	$	5,872		98%	$	6,784		99%
Canada		91		2%		91		1%
Total	$	5,963		100%	$	6,875		100%

Investment in Securities

Investment in securities:

From time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements.

Purchased securities

Purchased securities registered for public sale are carried at fair value. Such securities with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company`s results of operations. The Company`s investment securities that do not have readily determinable fair values are measured at cost minus impairment, and adjusted for changes in observable prices. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. Based upon the Company’s review of its portfolio, a fair value of nominal value was charged to operations for the respective three and six months ended June 30, 2018, and no fair value adjustment was recorded for the three and six months ended June 30, 2017. There were no investment securities sold or disposed of during the three and six months ended June 30, 2018 and 2017.

Warrants

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet as determined by the Managing Member. The fair value of the warrants were nominal at June 30, 2018 and December 31, 2017. There were no unrealized gains or losses during the three and six months ended June 30, 2018 and 2017.There were no exercises of warrants, net or otherwise, during the three and six months ended June 30, 2018 and 2017.

Per Unit Data

Per Unit data:

The Company issues only one class of Units, none of which are considered dilutive. Net income (loss) and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the period.

Fair Value

Fair value:

Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows:

Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, generally on a national exchange.

Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market.

Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company's own estimates of assumptions that market participants would use in pricing the asset or liability.

The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, information from third party remarketing agents, third party appraisals of collateral and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment, notes receivable and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources.

Recent Accounting Pronouncements

Recent accounting pronouncements:

In August 2016,the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-15 — Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 addresses specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. This guidance is effective for the Company beginning on January 1, 2018. The adoption of ASU 2016-15 did not have a material impact on its financial statements and disclosures.

In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. Management is currently evaluating the standard and expects the Update may potentially result in an increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments.

In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new standard will require lessees to recognize lease assets and lease liabilities arising from operating leases with lease terms greater than 12 months in the statement of financial position. Lessor accounting per ASU 2016-02 is mostly unchanged from the previous lease accounting under GAAP. Certain changes were made to the lessor accounting guidance in order to align the lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Similar to the previous guidance, lessors will classify leases as operating, direct financing, or sales-type. Lessors in operating leases will continue to recognize the underlying asset and recognize income on a straight-line basis. Lessors determine whether a lease is a sale of the underlying asset based on whether the lessee effectively obtains control of the underlying assets. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. While early adoption is permitted, the Company does not expect to elect that option. The Company expects to adopt the guidance in the first quarter 2019 using the modified retrospective method. Management is currently evaluating the impact of this standard on the financial statements and its operational and related disclosure requirements, including the impact on the Company’s current lease portfolio from a lessor perspective. As part of the adoption of the standard, the Company has selected and is in the process of implementing new lease accounting software. The Company is in the process of identifying and designing appropriate changes to its business processes, systems and controls to support the new standard. Given the limited changes to lessor accounting, Management does not expect material changes to recognition or measurement.

In July 2018, the FASB issued Accounting Standards Update 2018-11, Leases (Topic 842) Targeted Improvements (“ASU 2018-11”).  The new standard provides a new transition method and practical expedient to simplify the application of the new leasing standard. Under the new transition method, comparative periods presented in the financial statements in the period of adoption will not need to be restated.  Instead, a Company would initially apply the new lease requirements at the effective date, and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company would continue to report comparative periods presented in the financial statements in the period of adoption under current GAAP and provide the applicable required disclosures for such periods. The new practical expedient allows lessors to avoid separating lease and associated nonlease components within a contract if certain criteria are met.  If elected, lessors will be able to aggregate nonlease components that otherwise would be accounted for under the new revenue standard with the associated lease component if the following conditions are met (1) the timing and pattern of transfer of the nonlease component and the associated lease component are the same and (2) the stand-alone lease component would be classified as an operating lease if accounted for separately. For entities that have not adopted Topic 842 before the issuance of this Update, the effective date and transition requirements for the amendments in this Update related to separating components of a contract are the same as the effective date and transition requirements in Update 2016-02. The practical expedient may be elected either in the first reporting period following the issuance of this Update or at the original effective date of Topic 842 for that entity. The practical expedient may be applied either retrospectively or prospectively. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements.

In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The new standard provides guidance related to accounting for equity investments and financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (v) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance is effective for the Company beginning on January 1, 2018. The adoption of ASU 2016-01 did have an impact on its financial statements and disclosures. The Company’s investment securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company's results of operations. These investments are valued based on their quoted market prices. The Company elected to record equity investments without readily determinable fair values at cost, less impairment, and adjusted for changes in observable prices.  Any changes in the basis of these equity investments are reported in current earnings.

In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. This guidance is effective for the Company beginning on January 1, 2018. Management’s evaluation of the impact of such adoption on the financial statements of the Company indicated that such impact was immaterial as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues since leases are not included within the scope of Topic 606.

XML

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Summary of Significant Accounting Policies [Abstract]

Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue and Long-Lived Assets

The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the six months ended June 30, 2018 and 2017, and long-lived tangible assets as of June 30, 2018 and December 31, 2017 (dollars in thousands):

	Six Months Ended June 30,
	2018		% of Total		2017		% of Total
Revenue
United States	$	1,645		97%	$	1,580		98%
Canada		58		3%		27		2%
Total	$	1,703		100%	$	1,607		100%
	As of June 30,				As of December 31,
	2018		% of Total		2017		% of Total
Long-lived assets
United States	$	5,872		98%	$	6,784		99%
Canada		91		2%		91		1%
Total	$	5,963		100%	$	6,875		100%

XML

Investment in Equipment and Leases, Net (Tables)

6 Months Ended

Jun. 30, 2018

Investments in Equipment and Leases, Net [Abstract]

Investment in Leases

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

			Reclassifications,		Depreciation Amortization
	Balance		Additions /		Expense or		Balance
	December 31,		Dispositions and		Amortization		June 30,
	2017		Impairment losses		of Leases		2018
Net investment in operating leases	$	4,372	$	(104)	$	(333)	$	3,935
Assets held for sale or lease, net		2,494		(475)		-		2,019
Initial direct costs, net of accumulated   amortization of $3 at June 30, 2018 and $5 at December 31, 2017		9		-		-		9
Total	$	6,875	$	(579)	$	(333)	$	5,963

Property on Operating Leases

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

	Balance						Balance
	December 31,				Reclassifications or		June 30,
	2017		Additions		Dispositions		2018
Transportation, rail	$	13,719	$	-	$	(1,416)	$	12,303
Transportation, other		3,491		-		(70)		3,421
Aircraft		1,988		-		-		1,988
Construction		799		-		-		799
Manufacturing		624		-		-		624
Petro/natural gas		470		-		-		470
Materials handling		402		-		(146)		256
		21,493		-		(1,632)		19,861
Less accumulated depreciation		(17,121)		(333)		1,528		(15,926)
Total	$	4,372	$	(333)	$	(104)	$	3,935

Future Minimum Lease Payments Receivable

At June 30, 2018, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands):

		Operating Leases
Six months ending December 31, 2018	$	591
Twelve months ending December 31, 2019		614
2020		315
2021		90
2022		38
2023		2
	$	1,650

Schedule of Useful Lives of Assets

The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of June 30, 2018, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years):

Equipment category	Useful Life
Transportation, rail	35 - 40
Aircraft	20 - 30
Manufacturing	10 - 15
Petro/natural gas	10 - 15
Construction	7 - 10
Materials handling	7 - 10
Transportation, other	7 - 10

XML

Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2018

Related Party Transactions [Abstract]

AFS and /or Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement

During the three and six months ended June 30, 2018 and 2017, AFS and/or affiliates earned fees and billed for reimbursements of costs and expenses pursuant to the Operating Agreement as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Costs reimbursed to Managing Member and/or affiliates	$	142	$	148	$	291	$	298
Asset management fees to Managing Member and/or affiliates		29		26		57		54
	$	171	$	174	$	348	$	352

XML

Members' Capital (Tables)

6 Months Ended

Jun. 30, 2018

Members' Capital [Abstract]

Distributions to Other Members

Distributions to the Other Members for the three and six months ended June 30, 2018 and 2017 were as follows (in thousands except Units and per Unit data):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Distributions declared	$	-	$	2,794	$	3,283	$	6,287
Weighted average number of Units outstanding		13,971,486		13,971,486		13,971,486		13,971,486
Weighted average distributions per Unit	$	-	$	0.20	$	0.24	$	0.45

XML

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Measurements [Abstract]

Summary of Valuation Techniques and Significant Unobservable Inputs

The following tables summarize the valuation technique and significant observable input used for the Company’s nonrecurring fair value calculation categorized as Level 1 in the fair value hierarchy at June 30, 2018:

June 30, 2018
Name	Valuation Frequency	Valuation Technique	Unobservable Inputs
Impaired off-lease   Equipment	Non-recurring	Market Approach	Off lease equipment was sold for $501 thousand in July 2018

Estimated Fair Values of Financial Instruments

The following tables present a summary of the carrying value and fair value by level of financial instruments on the Company’s balance sheets at June 30, 2018 and December 31, 2017 (in thousands):

		Fair Value Measurements at June 30, 2018
		Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	1,367	$	1,367	$	-	$	-	$	1,367

		Fair Value Measurements at December 31, 2017
		Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	4,035	$	4,035	$	-	$	-	$	4,035
Financial liabilities:
Non-recourse debt		83		-		-		83		83

XML

Organization and Limited Liability Company Matters (Narrative) (Details) - USD ($) $ in Thousands		6 Months Ended	160 Months Ended	191 Months Ended
	Mar. 11, 2005	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Business formation date		Aug. 12, 2002
Business formation State		California
Business activities, description		sale of limited liability company investment units and acquiring equipment to engage in equipment leasing, lending and sales activities
Business termination date				Dec. 31, 2022
Sale of Limited Liability Company Units, number of Units	14,059,136
Proceeds from sale of Limited Liability Company Units	$ 140,600
Repurchase of Units, number of Units			87,650
Repurchase of Units, value			$ 720
Other Members [Member]
Members capital account, Units issued		13,971,486	13,971,486	13,971,486
Members capital account, Units outstanding		13,971,486	13,971,486	13,971,486	13,971,486	13,971,486

XML

Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) segment	Jun. 30, 2017 USD ($)
Summary of Significant Accounting Policies [Abstract]
Number of operating segments | segment			1
Number of reportable segments | segment			1
Unrealized loss on the fair valuation of warrants | $	$ 0	$ 0	$ 0	$ 0
Gain on net exercise of warrants | $	$ 0	$ 0	$ 0	$ 0

XML

Summary of Significant Accounting Policies (Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue and Long-Lived Assets) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 921	$ 740	$ 1,703	$ 1,607
Long-lived assets	5,963		$ 5,963		$ 6,875
Revenue [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of total			100.00%	100.00%
Long-lived Assets [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of total			100.00%		100.00%
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues			$ 1,645	$ 1,580
Long-lived assets	5,872		$ 5,872		$ 6,784
United States [Member] | Revenue [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of total			97.00%	98.00%
United States [Member] | Long-lived Assets [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of total			98.00%		99.00%
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues			$ 58	$ 27
Long-lived assets	$ 91		$ 91		$ 91
Canada [Member] | Revenue [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of total			3.00%	2.00%
Canada [Member] | Long-lived Assets [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of total			2.00%		1.00%

XML

Allowance for Credit Losses (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Allowance for Credit Losses [Abstract]
Allowance for credit losses	$ 77	$ 16

XML

Investment in Equipment and Leases, Net (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Investments in Equipment and Leases, Net [Abstract]
Lease equipments, depreciation method			straight line
Amortization of initial direct costs		$ 1	$ 1	$ 1
Impairment losses on equipment	$ 459		459
Depreciation of operating lease assets	$ 143	$ 245	$ 333	$ 522
Average estimated residual value of assets on operating leases	18.00%		18.00%		23.00%

XML

Investment in Equipment and Leases, Net (Investment in Leases) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Leases Disclosure [Line Items]
Balance December 31, 2017	$ 6,875
Reclassifications, Additions / Dispositions	(579)
Depreciation/ Amortization Expense or Amortization of Leases	(333)
Balance March 31, 2018	5,963
Initial direct costs, accumulated amortization	3	$ 5
Operating Leases [Member]
Leases Disclosure [Line Items]
Balance December 31, 2017	4,372
Reclassifications, Additions / Dispositions	(104)
Depreciation/ Amortization Expense or Amortization of Leases	(333)
Balance March 31, 2018	3,935
Asset Held Foe Sale Or Lease [Member]
Leases Disclosure [Line Items]
Balance December 31, 2017	2,494
Reclassifications, Additions / Dispositions	(475)
Balance March 31, 2018	2,019
Initial Direct Cost [Member]
Leases Disclosure [Line Items]
Balance December 31, 2017	9
Balance March 31, 2018	$ 9

XML

Investments in Equipment and Leases, Net (Property on Operating Leases) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Property Subject to or Available for Operating Lease [Line Items]
Property on operating leases, gross	$ 19,861	$ 21,493
Less accumulated depreciation	(15,926)	(17,121)
Property on operating leases, net	3,935	4,372
Additions, gross
Additions, less accumulated depreciation	(333)
Additions, net	(333)
Reclassifications or dispositions, gross	(1,632)
Reclassifications or dispositions, less accumulated depreciation	1,528
Reclassifications or dispositions, net	(104)
Transportation, Rail [Member]
Property Subject to or Available for Operating Lease [Line Items]
Property on operating leases, gross	12,303	13,719
Additions, gross
Reclassifications or dispositions, gross	(1,416)
Transportation, Other [Member]
Property Subject to or Available for Operating Lease [Line Items]
Property on operating leases, gross	3,421	3,491
Additions, gross
Reclassifications or dispositions, gross	(70)
Aircraft [Member]
Property Subject to or Available for Operating Lease [Line Items]
Property on operating leases, gross	1,988	1,988
Additions, gross
Reclassifications or dispositions, gross
Construction [Member]
Property Subject to or Available for Operating Lease [Line Items]
Property on operating leases, gross	799	799
Additions, gross
Reclassifications or dispositions, gross
Manufacturing [Member]
Property Subject to or Available for Operating Lease [Line Items]
Property on operating leases, gross	624	624
Additions, gross
Reclassifications or dispositions, gross
Petro/Natural Gas [Member]
Property Subject to or Available for Operating Lease [Line Items]
Property on operating leases, gross	470	470
Additions, gross
Reclassifications or dispositions, gross
Materials Handling [Member]
Property Subject to or Available for Operating Lease [Line Items]
Property on operating leases, gross	256	$ 402
Additions, gross
Reclassifications or dispositions, gross	$ (146)

XML

Investment in Equipment and Leases, Net (Future Minimum Lease Payments Receivable) (Details) $ in Thousands	Jun. 30, 2018 USD ($)
Operating Leases
Six months ending December 31, 2018	$ 591
Twelve months ending December 31, 2019	614
2020	315
2021	90
2022	38
2023	2
Operating leases, future minimum payments receivable, total	$ 1,650

XML

Investment in Equipment and Leases, Net (Schedule of Useful Lives of Assets) (Details)	6 Months Ended
	Jun. 30, 2018
Minimum [Member] | Transportation, Rail [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	35 years
Minimum [Member] | Aircraft [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	20 years
Minimum [Member] | Manufacturing [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	10 years
Minimum [Member] | Petro/Natural Gas [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	10 years
Minimum [Member] | Construction [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	7 years
Minimum [Member] | Materials Handling [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	7 years
Minimum [Member] | Transportation, Other [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	7 years
Maximum [Member] | Transportation, Rail [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	40 years
Maximum [Member] | Aircraft [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	30 years
Maximum [Member] | Manufacturing [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	15 years
Maximum [Member] | Petro/Natural Gas [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	15 years
Maximum [Member] | Construction [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	10 years
Maximum [Member] | Materials Handling [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	10 years
Maximum [Member] | Transportation, Other [Member]
Property Subject to or Available for Operating Lease [Line Items]
Useful lives of lease assets	10 years

XML

Related Party Transactions (AFS and/or Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Related Party Transactions [Abstract]
Costs reimbursed to Managing Member and/or affiliates	$ 142	$ 148	$ 291	$ 298
Asset management fees to Managing Member and/or affiliates	29	26	57	54
Total expenses from transactions with related party	$ 171	$ 174	$ 348	$ 352

XML

Non-Recourse Debt (Narrative) (Details) - Non-Recourse Debt [Member] - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Fixed interest rate on note	1.97%
Gross operating lease rentals and future payments on direct financing leases		$ 83
Carrying value of pledged assets		$ 417

XML

Commitments (Narrative) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Commitments [Abstract]
Commitments to purchase lease assets or fund investments in notes receivable	$ 0

XML

Members' Capital (Narrative) (Details) - shares	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Other Members [Member]
Other Members Capital Account [Line Items]
Members capital account, Units issued	13,971,486
Members capital account, Units outstanding	13,971,486	13,971,486	13,971,486
Other Members capital account, Units authorized	15,000,000	15,000,000
Initial Member [Member]
Other Members Capital Account [Line Items]
Members capital account, Units issued	50	50

XML

Members' Capital (Distributions to Other Members) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Members' Capital [Abstract]
Distributions declared		$ 2,794	$ 3,283	$ 6,287	$ 6,287
Weighted average number of Units outstanding	13,971,486	13,971,486	13,971,486	13,971,486
Weighted average distributions per Unit		$ 0.20	$ 0.24	$ 0.45	$ 0.45

XML

Fair Value Measurements (Narrative) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Fair Value Measurements [Abstract]
Impairment losses on equipment	$ 384

XML

Fair Value Measurements (Summary of Valuation Techniques And Significant Unobservable Inputs) (Details) $ in Thousands	Jun. 30, 2018 USD ($)
Market Approach [Member] | Off-Lease Equipment [Member] | Fair Value Measurements Nonrecurring [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Lease assets sold	$ 501

XML

Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	$ 1,367	$ 4,035
Financial liabilities:
Non-recourse debt		83
Estimated Fair Value [Member]
Financial assets:
Cash and cash equivalents	1,367	4,035
Financial liabilities:
Non-recourse debt		83
Estimated Fair Value [Member] | Level 1 Estimated Fair Value [Member]
Financial assets:
Cash and cash equivalents	1,367	4,035
Financial liabilities:
Non-recourse debt
Estimated Fair Value [Member] | Fair Value, Inputs, Level 2 [Member]
Financial assets:
Cash and cash equivalents
Financial liabilities:
Non-recourse debt
Estimated Fair Value [Member] | Level 3 Estimated Fair Value [Member]
Financial liabilities:
Non-recourse debt		$ 83