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FINANCING RECEIVABLES AND OPERATING LEASES | 3 Months Ended
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Jun. 30, 2014
FINANCING RECEIVABLES AND OPERATING LEASES [Abstract] |
FINANCING RECEIVABLES AND OPERATING LEASES | 2. FINANCING RECEIVABLES AND OPERATING LEASES Our notes receivable, investments in leases, and leased equipment consist of assets that we financed for our customers, which we manage as a portfolio of investments. Our leases to our customers are accounted for as investments in direct financing, sales-type or operating leases in accordance with Codification Topic, Leases. We also finance third-party software, maintenance, and services for our customers, which are classified as notes receivables. Our notes receivables are interest bearing and are often due over a period of time that corresponds with the terms of the leased products. FINANCING RECEIVABLES—NET Our financing receivables, net consist of the following (in thousands):
|  | Notes |  |  | Lease-Related |  |  | Total Financing |
June 30, 2014 |  | Receivables |  |  | Receivables |  |  | Receivables |
Minimum payments |  | $ | 60,420 |  |  | $ | 80,177 |  |  | $ | 140,597 |
Estimated unguaranteed residual value (1) |  |  | - |  |  |  | 8,119 |  |  |  | 8,119 |
Initial direct costs, net of amortization (2) |  |  | 344 |  |  |  | 489 |  |  |  | 833 |
Unearned income |  |  | - |  |  |  | (5,854 | ) |  |  | (5,854 | )
Reserve for credit losses (3) |  |  | (3,563 | ) |  |  | (1,018 | ) |  |  | (4,581 | )
Total, net |  | $ | 57,201 |  |  | $ | 81,913 |  |  | $ | 139,114 |
Reported as: |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 25,118 |  |  | $ | 32,864 |  |  | $ | 57,982 |
Long-term |  |  | 32,083 |  |  |  | 49,049 |  |  |  | 81,132 |
Total, net |  | $ | 57,201 |  |  | $ | 81,913 |  |  | $ | 139,114 |
| (1) | Includes estimated unguaranteed residual values of $3,470 thousand for direct financing leases, which have been sold and accounted for as sales under Codification Topic Transfers and Servicing.
| (2) | Initial direct costs are shown net of amortization of $539 thousand.
| (3) | For details on reserve for credit losses, refer to Note 4, “Reserves for Credit Losses.”
|  | Notes |  |  | Lease-Related |  |  | Total Financing |
March 31, 2014 |  | Receivables |  |  | Receivables |  |  | Receivables |
Minimum payments |  | $ | 43,707 |  |  | $ | 81,551 |  |  | $ | 125,258 |
Estimated unguaranteed residual value (1) |  |  | - |  |  |  | 8,275 |  |  |  | 8,275 |
Initial direct costs, net of amortization (2) |  |  | 354 |  |  |  | 537 |  |  |  | 891 |
Unearned income |  |  | - |  |  |  | (6,285 | ) |  |  | (6,285 | )
Reserve for credit losses (3) |  |  | (3,364 | ) |  |  | (1,024 | ) |  |  | (4,388 | )
Total, net |  | $ | 40,697 |  |  | $ | 83,054 |  |  | $ | 123,751 |
Reported as: |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 22,109 |  |  | $ | 35,640 |  |  | $ | 57,749 |
Long-term |  |  | 18,588 |  |  |  | 47,414 |  |  |  | 66,002 |
Total, net |  | $ | 40,697 |  |  | $ | 83,054 |  |  | $ | 123,751 |
| (1) | Includes estimated unguaranteed residual values of $3,034 thousand for direct financing leases which have been sold and accounted for as sales under Codification Topic Transfers and Servicing.
| (2) | Initial direct costs are shown net of amortization of $525 thousand.
| (3) | For details on reserve for credit losses, refer to Note 4, “Reserves for Credit Losses.”
OPERATING LEASES—NET Operating leases—net primarily represents leases that do not qualify as direct financing leases. The components of the operating leases—net are as follows (in thousands):
|  | June 30, |  |  | March 31, |
|  | 2014 |  |  | 2014 |
Cost of equipment under operating leases |  | $ | 42,217 |  |  | $ | 40,513 |
Accumulated depreciation |  |  | (22,937 | ) |  |  | (20,525 | )
Investment in operating lease equipment—net (1) |  | $ | 19,280 |  |  | $ | 19,988 |
(1) | Includes estimated unguaranteed residual values of $5,672 thousand and $5,610 thousand as of June 30, 2014 and March 31, 2014, respectively.
TRANSFERS OF FINANCIAL ASSETS We enter into arrangements to transfer the contractual payments due under financing receivables and operating leases, which are accounted for as sales or secured borrowings in accordance with Codification Topic, Transfers and Servicing. For transfers accounted for as a secured borrowing, the corresponding investments serve as collateral for non-recourse notes payable. As of June 30, 2014 and March 31, 2014, we had financing receivables and operating leases of $70.1 million and $72.3 million, respectively that were collateral for non-recourse notes payable. See Note 6, “Notes Payable and Credit Facility.” For transfers accounted for as sales, we derecognize the carrying value of the asset transferred and recognize a net gain or loss on the sale, which is presented within financing revenues in the unaudited condensed consolidated statement of operations. During the three months ended June 30, 2014 and 2013, we recognized net gains of $2.2 million and $4.3 million, respectively. Total proceeds from these sales were $56.2 million and $87.5 million for the three months ended June 30, 2014 and 2013, respectively.

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- Definition The entire disclosure for lessor entity's leasing arrangements for operating, capital and leveraged leases. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=25496975&loc=d3e45377-112738 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6452767&loc=d3e37045-112695 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 47 -URI http://asc.fasb.org/extlink&oid=6584217&loc=d3e38847-112698 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 30 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=25496975&loc=d3e45424-112738 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 20 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6453916&loc=d3e41460-112716 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 20 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6453916&loc=d3e41457-112716 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 30 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=25496975&loc=d3e45437-112738 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6454179&loc=d3e41551-112718 + Details
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