5. Long-term Obligations

Capital Leases

The Company incurs capital lease obligations for student computers under a non-revolving lease line of credit with PNC Equipment Finance, LLC. As of December 31, 2017 and June 30, 2017, the outstanding balance of capital leases under the current and former lease lines of credit (as discussed in more detail below) was $27.3 million and $21.9 million, respectively, with lease interest rates ranging from 1.95% to 3.12%. Individual leases under the lease lines of credit include 36-month payment terms with a $1 purchase option at the end of each lease term. The Company has pledged the assets financed to secure the outstanding leases. The gross carrying value of leased student computers as of December 31, 2017 and June 30, 2017 was $43.9 million and $39.1 million, respectively. The accumulated depreciation of leased student computers as of December 31, 2017 and June 30, 2017 was $25.5 million and $25.1 million, respectively.

The Company had $24.2 million and $31.9 million of remaining availability under its lease line of credit as of December 31, 2017 and June 30, 2017, respectively. Interest on unpaid principal under the lease line of credit is at a fluctuating rate of LIBOR plus 1.2%.

The following is a summary as of December 31, 2017 of the present value of the net minimum lease payments on capital leases under the Company’s commitments:


As of June 30,	Capital Leases
	(in thousands)
2018 (remaining six months)	$	7,395
2019		12,153
2020		6,711
2021		1,976
Total minimum payments		28,235
Less amount representing interest (imputed weighted average capital lease interest rate of 2.65%)		(888)
Net minimum payments		27,347
Less current portion		(13,416)
Present value of minimum payments, less current portion	$	13,931