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LEASED EQUIPMENT

Leased revenue equipment as of June 30, 2016 consists of the following (in thousands):

	2016
Tractors		92,378
Trailers		16,639
		109,017
Accumulated depreciation		9,717
	$	99,300

Included in this balance is approximately $37 million of assets for which we received $30.0 million in proceeds from 19

Capital. Although we transferred title of these assets, we retained certain risks of ownership through a deferred payment stream associated with the ultimate disposition of the equipment at the end of the lease period. We deemed that this transaction did not qualify for sales treatment under ASC 840-20-40-3. As a result, these assets were not removed from our balance sheet.

The majority of our leased assets would qualify for capital lease treatment under ASC 840, however due to the collectability of the minimum lease payments not being reasonably predictable we treat our leased assets as operating leases and record revenue upon collection of payment. Due to the unpredictability of collections we are not able to reasonably estimate lease payment collections over the next five years. Our tractor leases generally are up to 60 month term leases ranging from $2,000 to $4,000 in monthly payments with $0 to $70,000 residuals. Upon default we may choose to re-lease the assets at new terms or dispose of the unit.

At June 30, 2016 this account consisted of approximately 1,300 tractors and 900 trailers.