Lease Receivable

9 Months Ended

Sep. 26, 2020

6. Lease Receivable

The Company recognizes revenue and costs, as well as a lease receivable, at the time embedded sales-type leases within its deferred equipment agreements commence. Lease revenue related to both operating-type and sales-type leases for the three months ended September 26, 2020 and September 28, 2019 was approximately $13.0 million and $11.0 million, respectively, and is included within product revenue in the accompanying condensed consolidated statements of operations. Lease revenue related to both operating-type and sales-type leases for the nine months ended September 26, 2020 and September 28, 2019 was approximately $31.0 million and $33.0 million, respectively. Costs related to embedded leases within the Company’s deferred equipment agreements are included in cost of goods sold in the accompanying condensed consolidated statements of operations.

Lease receivable consists of the following (in thousands):


	September 26, 2020		December 28, 2019
Lease receivable	$	78,856	$	70,589
Allowance for credit loss	(197)		(403)
Lease receivable, net	78,659		70,186
Less: current portion of lease receivable	(22,447)		(20,250)
Lease receivable, noncurrent	$	56,212	$	49,936

As of September 26, 2020, 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 (balance of year)	$	5,903
2021	21,706
2022	18,399
2023	13,957
2024	9,964
Thereafter	8,730
Total	$	78,659

Estimated future operating lease payments expected to be received from customers under deferred equipment agreements are not material as of September 26, 2020.