Net Investment in Direct Finance Leases (Tables)

12 Months Ended

Dec. 31, 2012

Net Investment in Direct Finance Leases [Abstract]

Components of entity's net investment in finance leases

The following table represents the components of the Company's net investment in direct finance leases (in thousands):

	December 31, 2012			December 31, 2011
Gross finance lease receivables (1)	$	116,999		$	52,673
Unearned income (2)		(31,445	)		(14,924	)
Net investment in finance leases	$	85,554		$	37,749

(1) At the inception of the lease, the Company records the total minimum lease payments, executory costs, if any, and unguaranteed residual value as gross finance lease receivables. The gross finance lease receivable is reduced as customer payments are received.  Approximately $9.1 million and $6.3 million of unguaranteed residual value at December 31, 2012 and 2011, respectively, were included in gross finance lease receivables. There were no executory costs included in gross finance lease receivables as of December 31, 2012 and 2011.

(2) The difference between the gross finance lease receivable and the cost of the equipment or carrying amount at the lease inception is recorded as unearned income. Unearned income together with initial direct costs, are amortized to income over the lease term so as to produce a constant periodic rate of return. There were no unamortized initial direct costs as of December 31, 2012 and 2011.

Gross finance lease receivables by categories of customers

Based on the above categories, the Company's gross finance lease receivables were as follows (in thousands):

	December 31, 2012		December 31, 2011
Tier 1	$	98,611	$	31,017
Tier 2		18,388		21,656
Tier 3		—		—
	$	116,999	$	52,673

Contractual maturities of gross finance lease receivables

Contractual maturities of the Company's gross finance lease receivables subsequent to December 31, 2012 are as follows (in thousands):

2012	$	18,617
2013		17,807
2014		20,650
2015		17,553
2016		11,375
2017 and thereafter		30,997
	$	116,999