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Leases
 3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Leases Leases The Company owns certain point-of-sale (“POS”) terminal equipment which it leases to merchants. The terms of the leases typically range from one month to five years.
Components of Lease Income
Three Months Ended
March 31,
(In millions)20212020
Sales-type leases:
   Selling profit (1)
$13 $14 
   Interest income (1)
19 19 
Operating lease income (2)
71 24 
(1)Selling profit includes $30 million and $28 million recorded within product revenue with a corresponding charge of $17 million and $14 million recorded within cost of product in the consolidated statements of income for the three months ended March 31, 2021 and 2020, respectively. Interest income is included within product revenue in the consolidated statements of income.
(2)Operating lease income includes a nominal amount of variable lease income and is included within product revenue in the consolidated statements of income for the three months ended March 31, 2021 and 2020.

Lease Payment Receivables Portfolio
The Company accounts for lease payment receivables in connection with POS terminal equipment as a single portfolio. The Company recognizes an allowance for expected credit losses on lease payment receivables at the commencement date of the lease by considering the term, geography and internal credit risk ratings of such lease. The internal credit risk ratings are established based on lessee-specific risk factors, such as FICO score, number of years the lessee has been in business and the nature of the lessee’s industry, which are considered indicators of the likelihood a lessee may default in the future. The reserve for estimated credit losses on lease payment receivables was $62 million and $64 million at March 31, 2021 and December 31, 2020, respectively.
The Company determines delinquency status on lease payment receivables based on the number of calendar days past due. The Company considers lease payments that are 90 days or less past due as performing. Lease payments that are greater than 90 days past due are placed on non-accrual status in which interest income is no longer recognized. Lease payment receivables are fully written off in the period they become delinquent greater than 180 days past due. The amortized cost balance of net investment leases was $238 million and $237 million at March 31, 2021 and December 31, 2020, respectively. Lease payment receivables that were determined to be on non-accrual status were nominal at each of March 31, 2021 and December 31, 2020.
Leases Leases The Company owns certain point-of-sale (“POS”) terminal equipment which it leases to merchants. The terms of the leases typically range from one month to five years.
Components of Lease Income
Three Months Ended
March 31,
(In millions)20212020
Sales-type leases:
   Selling profit (1)
$13 $14 
   Interest income (1)
19 19 
Operating lease income (2)
71 24 
(1)Selling profit includes $30 million and $28 million recorded within product revenue with a corresponding charge of $17 million and $14 million recorded within cost of product in the consolidated statements of income for the three months ended March 31, 2021 and 2020, respectively. Interest income is included within product revenue in the consolidated statements of income.
(2)Operating lease income includes a nominal amount of variable lease income and is included within product revenue in the consolidated statements of income for the three months ended March 31, 2021 and 2020.

Lease Payment Receivables Portfolio
The Company accounts for lease payment receivables in connection with POS terminal equipment as a single portfolio. The Company recognizes an allowance for expected credit losses on lease payment receivables at the commencement date of the lease by considering the term, geography and internal credit risk ratings of such lease. The internal credit risk ratings are established based on lessee-specific risk factors, such as FICO score, number of years the lessee has been in business and the nature of the lessee’s industry, which are considered indicators of the likelihood a lessee may default in the future. The reserve for estimated credit losses on lease payment receivables was $62 million and $64 million at March 31, 2021 and December 31, 2020, respectively.
The Company determines delinquency status on lease payment receivables based on the number of calendar days past due. The Company considers lease payments that are 90 days or less past due as performing. Lease payments that are greater than 90 days past due are placed on non-accrual status in which interest income is no longer recognized. Lease payment receivables are fully written off in the period they become delinquent greater than 180 days past due. The amortized cost balance of net investment leases was $238 million and $237 million at March 31, 2021 and December 31, 2020, respectively. Lease payment receivables that were determined to be on non-accrual status were nominal at each of March 31, 2021 and December 31, 2020.