Activity in our reserves for credit losses for the six months ended September 30, 2016 and 2015 were as follows (in thousands):

Our reserves for credit losses and minimum payments associated with our notes receivables and lease-related receivables disaggregated on the basis of our impairment method were as follows (in thousands):

The net credit exposure for the balance evaluated individually for impairment as of September 30, 2016 and March 31, 2016 was $3.2 million, which is related to a customer in bankruptcy. The note and lease receivables associated with this customer are on non-accrual status. We place receivables on nonaccrual status when events, such as a customer's declaring bankruptcy, occur that indicate a receivable will not be collectable. We charge off uncollectable financing receivables when we stop pursuing collection.

 

The age of the recorded minimum lease payments and net credit exposure associated with our investment in direct financing and sales-type leases that are past due disaggregated based on our internally assigned credit quality rating (“CQR”) were as follows as of September 30, 2016 and March 31, 2016 (in thousands):

The age of the recorded notes receivable balance disaggregated based on our internally assigned CQR were as follows as September 30, 2016 and March 31, 2016 (in thousands):

We estimate losses on our net credit exposure to be between 0% - 5% for customers with highest CQR, as these customers are investment grade or the equivalent of investment grade. We estimate losses on our net credit exposure to be between 2% - 15% for customers with average CQR, and between 15% - 100% for customers with low CQR, which includes customers in bankruptcy.