3. Investment in equipment and leases, net:

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


	Balance December 31, 2011		Reclassifications & Additions/ Dispositions			Depreciation/ Amortization Expense or Amortization of Leases			Balance June 30, 2012
Net investment in operating leases	$	2,829	$	(3	)	$	(133	)	$	2,693
Assets held for sale or lease, net of accumulated depreciation of $5 at June 30, 2012 and December 31, 2011		14		—			—			14
Total	$	2,843	$	(3	)	$	(133	)	$	2,707

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 sale or lease. As a result of these reviews, management determined that no impairment losses existed during the respective six months ended June 30, 2012 and 2011.

The Partnership utilizes a straight-line depreciation method for equipment in all of the categories currently in its portfolio of lease transactions. Depreciation expense on the Partnership’s equipment was $66 thousand and $203 thousand for the respective three months ended June 30, 2012 and 2011, and was $133 thousand and $412 thousand for the respective six months ended June 30, 2012 and 2011.

All of the leased property was acquired in the years 1993 through 2004.

Operating leases:

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


	Balance December 31, 2011			Additions			Reclassifications or Dispositions			Balance June 30, 2012
Transportation, rail	$	16,379		$	—		$	(29	)	$	16,350
Containers		234			—			—			234
		16,613			—			(29	)		16,584
Less accumulated depreciation		(13,784	)		(133	)		26			(13,891	)
Total	$	2,829		$	(133	)	$	(3	)	$	2,693

The average estimated residual value for assets on operating leases was 13% and 14% of the assets’ original cost at June 30, 2012 and December 31, 2011, respectively.

In July 2012, pursuant to an ongoing liquidation of portfolio assets, the Fund completed the sale of approximately a third of its June 30, 2012 portfolio of assets to two third party lessors. It is the General Partner’s intent to complete an orderly liquidation of the Fund’s remaining portfolio of assets as soon as reasonably practicable.

At June 30, 2012, the aggregate amounts of future minimum lease payments under operating leases are as follows (in thousands):


	Operating Leases
Six months ending December 31, 2012	$	844
Year ending December 31, 2013		961
2014		807
2015		106
2016		36
2017		36
Thereafter		69
	$	2,859

As indicated in Note 1, the Partnership is scheduled to terminate no later than December 31, 2013. In the event that any assets remain at such date, the Fund will venture to dispose of such assets in an orderly manner within a reasonable timeframe.

ATEL CASH DISTRIBUTION FUND V L P 10-Q