Investment in leases

6 Months Ended

Dec. 28, 2012

7.	Investment in leases

Investment in direct financing leases primarily consists of manufacturing equipment. The following lists the components of the Company’s investment in direct financing leases as of December 28, 2012 and June 29, 2012:


	December 28, 2012		June 29, 2012
Total minimum lease payments receivable	$	—	$	3,522
Estimated residual values of leased equipment		—		—

Investment in direct financing leases		—		3,522
Less: unearned income		—		(186	)

	$	—	$	3,336
Less: written-off of investment in direct financing leases		—		(3,336	)

Net investment in direct financing leases	$	—	$	—

In the three months ended December 30, 2011, investment in leases of $3,336 was written-off because the underlying assets were damaged in the severe flooding that occurred in Thailand during October and November 2011.

- Definition

The entire disclosure for lessor's leasing arrangements, which includes direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease.

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