Note 8 - Net Investment In Leases

9 Months Ended

Mar. 31, 2013

Leases of Lessor Disclosure [Text Block]

NOTE 8 – NET INVESTMENT IN LEASES

The Company's net investment in leases consists of the following:

	March 31, 2013			June 30, 2012
	(in thousands)
Minimum lease payments receivable	$	335,454		$	258,877
Estimated residual value		14,712			17,270
Less unearned income		(24,089	)		(19,461	)
Net investment in leases before allowances		326,077			256,686
Less allowance for lease losses		(3,193	)		(3,052	)
Less valuation allowance for estimated residual value		(301	)		(81	)
Net investment in leases	$	322,583		$	253,553

The minimum lease payments receivable and estimated residual value are discounted using the internal rate of return method related to each specific capital lease.  Unearned income includes the offset of initial direct costs of $2.8 million and $3.6 million at March 31, 2013 and June 30, 2012, respectively.