3. Investment in equipment and leases, net:

The Partnership’s investments in equipment and leases consists of the following (in thousands):


	Balance December 31, 2011		Reclassifications & Additions/ Dispositions			Depreciation/ Amortization Expense or Amortization of Leases			Balance March 31, 2012
Net investment in operating leases	$	3,600	$	(25	)	$	(90	)	$	3,485
Assets held for sale or lease, net		5		—			—			5
Total	$	3,605	$	(25	)	$	(90	)	$	3,490

Impairment of investments in leases and assets held for sale or lease:

Management periodically reviews the carrying values of its assets on leases and assets held for lease or sale for impairment. As a result of these reviews, management determined that no impairment losses existed for the respective three month periods ended March 31, 2012 and 2011.

The Partnership utilizes a straight-line depreciation method over the term of the equipment lease for equipment in all of the categories currently in its portfolio of lease transactions. Depreciation expense on the Partnership’s equipment totaled $90 thousand and $188 thousand for the respective three months ended March 31, 2012 and 2011.

All of the equipment on leases was acquired in the years 1995 through 1997.

Net investment in operating leases:

Property on operating leases consists of the following (in thousands):


	Balance December 31, 2011			Additions			Reclassifications or Dispositions			Balance March 31, 2012
Transportation, rail	$	24,117		$	—		$	(137	)	$	23,980
Transportation, other		295			—			—			295
Materials handling		199			—			—			199
		24,611			—			(137	)		24,474
Less accumulated depreciation		(21,011	)		(90	)		112			(20,989	)
Total	$	3,600		$	(90	)	$	(25	)	$	3,485

The average estimated residual value for assets on operating leases was 12% and 13% of the assets’ original cost at March 31, 2012 and December 31, 2011, respectively.

The Partnership earns revenues from certain lease assets based on utilization of such assets. Such contingent rentals and the associated expenses are recorded when earned and/or incurred. The revenues associated with these rentals are included as a component of Operating Lease Revenues, and totaled $117 thousand and $100 thousand for the respective three months ended March 31, 2012 and 2011.

At March 31, 2012, the aggregate amounts of future minimum lease payments under operating leases are as follows (in thousands):


	Operating Leases
Nine months ending December 31, 2012	$	1,549
Year ending December 31, 2013		1,155
2014		880
	$	3,584

ATEL CASH DISTRIBUTION FUND VI LP 10-Q