Note 5 - Net Investment in Leases

12 Months Ended

Jun. 30, 2015

Leases [Abstract]

Leases of Lessor Disclosure [Text Block]

Note 5 – Net Investment in Leases:

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

	June 30,
	2015			2014
	(in thousands)
Minimum lease payments receivable	$	310,960		$	340,211
Estimated residual value		13,819			12,996
Less unearned income		(23,046	)		(23,272	)
Net investment in leases before allowances		301,733			329,935
Less allowance for lease losses		(3,339	)		(3,236	)
Less valuation allowance for estimated residual value		(70	)		(80	)
Net investment in leases	$	298,324		$	326,619

The minimum lease payments receivable and estimated residual value are discounted using the internal rate of return method related to each specific lease. Unearned income and discounts include the offset of initial direct costs of $2.4 million and $2.5 million at June 30, 2015 and 2014, respectively.

At June 30, 2015, a summary of the installments due on minimum lease payments receivable, and the expected maturity of the Company's estimated residual value are as follows:

Years ending June 30,	Lease Receivable			Estimated Residual Value			Total
	(in thousands)
2016	$	129,229		$	2,512		$	131,741
2017		85,589			5,002			90,591
2018		49,979			4,194			54,173
2019		27,754			1,249			29,003
2020		11,202			249			11,451
Thereafter		7,207			613			7,820
		310,960			13,819			324,779
Less unearned income		(21,237	)		(1,809	)		(23,046	)
Less allowances		(3,339	)		(70	)		(3,409	)
	$	286,384		$	11,940		$	298,324

Non-recourse debt, which relates to the discounting of lease receivables, bears interest at rates ranging from 2.11% to 5.76%. Maturities of such obligations at June 30, 2015 are as follows:

Years ending June 30,	Non-recourse Debt
	(in thousands)
2016	$	5,514
2017		4,159
2018		280
Total non-recourse debt		9,953
Deferred interest expense		240
Discounted lease rentals assigned to lenders	$	10,193

Deferred interest expense of $240,000 at June 30, 2015 will be amortized against direct finance income related to the Company's discounted lease rentals assigned to lenders of $10.2 million using the effective yield method over the applicable lease term.