LEASES

9 Months Ended

Sep. 30, 2021

Lessor Information

Sales-type Leases. Lease receivables relating to sales-type lease arrangements are presented on the Condensed Consolidated Balance Sheets as follows (in millions):


	As of
	September 30, 2021		December 31, 2020
Gross lease receivables	$	356.1	286.1
Unearned income	(11.7)		(11.1)
Subtotal	344.4		275.0
Allowance for credit loss	(3.7)		(4.4)
Net investment in sales-type leases	$	340.7	$	270.6
Reported as:
Prepaids and other current assets	$	98.6	81.1
Intangible and other assets, net	242.1		189.5
Total, net	$	340.7	270.6

Contractual maturities of gross lease receivables at September 30, 2021, are as follows (in millions):


Fiscal Year	Amount
Remainder of 2021	$	25.6
2022	101.4
2023	86.5
2024	74.2
2025	49.4
2026 and thereafter	19.0
Total	$	356.1

The Company enters into sales-type leases with certain qualified customers to purchase its systems. Sales-type leases have terms that generally range from 24 to 84 months and are usually collateralized by a security interest in the underlying assets. The allowance for loan loss is based on the Company’s assessment of current expected lifetime loss on lease receivables. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, the age of the lease receivable balances, and current economic conditions that may affect a customer’s ability to pay. Lease receivables are considered past due 90 days after invoice.

The Company manages the credit risk in net investment in sales-type leases using a number of factors, including, but not limited to the following: size of operations; profitability, liquidity, and debt ratios; payment history; and past due amounts. The Company also uses credit scores obtained from external providers as a key credit quality indicator for the purposes of determining credit quality. The following table presents credit quality by class of net investment in sales-type leases as of September 30, 2021. The following table summarizes the amortized cost basis by year of origination and credit quality indicator as of September 30, 2021 (in millions):


	2021		2020		2019		2018		2017		Prior		Net Investment
Credit Rating:
High	$	76.0	$	56.0	$	25.8	$	5.5	$	3.6	$	0.9	$	167.8
Moderate	70.5		67.4		18.6		11.5		2.5		0.5		171.0
Low	0.7		4.7		0.2		—		—		—		5.6
Total	$	147.2	$	128.1	$	44.6	$	17.0	$	6.1	$	1.4	$	344.4

For the three and nine months ended September 30, 2021, and 2020, credit losses related to net investment in sales-type leases were not significant.