Lease Receivable

6 Months Ended

Jul. 03, 2021

6. Lease Receivable

The Company 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 three months ended July 3, 2021 and June 27, 2020 was approximately $18.0 million and $8.0 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 six months ended July 3, 2021 and June 27, 2020 was approximately $28.0 million and $18.0 million, respectively, and is included within product revenue in the accompanying condensed consolidated statements of operations. 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):


	July 3, 2021		January 2, 2021
Lease receivable	$	92,078	$	81,074
Allowance for credit loss	(230)		(202)
Lease receivable, net	91,848		80,872
Less: current portion of lease receivable	(26,650)		(23,206)
Lease receivable, noncurrent	$	65,198	$	57,666

As of July 3, 2021, estimated future maturities of customer sales-type lease receivables for each of the following fiscal years are as follows (in thousands):


Fiscal year	Amount
2021 (balance of year)	$	26,650
2022	22,526
2023	17,572
2024	11,971
2025	8,026
Thereafter	5,103
Total	$	91,848

Estimated future operating lease payments expected to be received from customers under deferred equipment agreements are not material as of July 3, 2021.