Lease Receivable Lease Receivable

12 Months Ended

Dec. 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-type leases 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. Lease revenue related to both operating-type and sales-type leases for the year ended December 28, 2019 was approximately $44.0 million and is included within product revenue in the accompanying consolidated statement of operations. 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” in Note 2 to these consolidated financial statements for additional information related to the Company’s adoption of ASC 842.

Lease receivable consists of the following (in thousands):



	December 28, 2019
Lease receivable	$	70,589
Allowance for credit loss	(403		)
Lease receivable, net	70,186
Less: Current portion of lease receivable	(20,250		)
Lease receivable, noncurrent	$	49,936

As of December 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
2020	$	20,653
2021	16,541
2022	13,500
2023	9,380
2024	5,869
Thereafter	4,646
Total	$	70,589

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