Lease Receivable Lease Receivable

9 Months Ended

Sep. 28, 2019

6. Lease Receivable

The Company adopted ASC 842, the lease accounting standard, effective as of December 30, 2018. Among other things, the Company’s adoption of ASC 842 resulted in changes to the classification of certain embedded leases within its deferred equipment agreements from operating to sales-type leases. As a result, the Company now recognizes revenue and costs, as well as a lease receivable, at the time the lease commences pursuant to deferred equipment agreements containing embedded sales-type leases. Revenue and costs related to embedded leases within the Company’s deferred equipment agreements are included in product revenue and cost of goods sold, respectively. See “Recently Adopted Accounting Pronouncements” under Note 2 to these condensed consolidated financial statements for additional information related to the Company’s adoption of ASC 842.

Lease receivable consists of the following (in thousands):



	September 28, 2019
Lease receivable	$	67,669
Allowance for credit loss	(372		)
Lease receivable, net	67,297
Less: Current portion of lease receivable	(19,855		)
Lease receivable, noncurrent	$	47,442

As of September 28, 2019, estimated future maturities of customer sales-type lease receivables for each of the following fiscal years are as follows (in thousands):



Fiscal year	Amount
2019 (balance of year)	$	5,183
2020	18,983
2021	15,009
2022	11,891
2023	7,928
Thereafter	8,675
Total	$	67,669

Estimated future operating lease payments expected to be received from customers under deferred equipment agreements are not material as of September 28, 2019.