Note 8 - Net Investment in Leases

3 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Leases of Lessor Disclosure [Text Block]

NOTE 8 – NET INVESTMENT IN LEASES

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

	September 30,			June 30,
	2016			2016
	(in thousands)
Minimum lease payments receivable	$	237,192		$	248,527
Estimated residual value		9,798			10,871
Less unearned income		(20,416	)		(19,434	)
Net investment in leases before allowances		226,574			239,964
Less allowance for lease losses		(2,231	)		(2,228	)
Less valuation allowance for estimated residual value		(62	)		(62	)
Net investment in leases	$	224,281		$	237,674

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 $2.6 million at September 30, 2016 and at June 30, 2016.