Investment in Leasing Operations:

12 Months Ended

Dec. 27, 2014

4.Investment in Leasing Operations:

Investment in leasing operations consists of the following:

	December 27, 2014			December 28, 2013
Direct financing and sales-type leases:
Minimum lease payments receivable	$	40,739,900		$	35,450,900
Estimated residual value of equipment	4,347,100			4,348,800
Unearned lease income net of initial direct costs deferred	(6,061,100		)	(4,963,400		)
Security deposits	(3,253,200		)	(3,325,600		)
Equipment installed on leases not yet commenced	8,364,100			6,718,000
Total investment in direct financing and sales-type leases	44,136,800			38,228,700
Allowance for credit losses	(386,000		)	(822,700		)
Net investment in direct financing and sales-type leases	43,750,800			37,406,000

Operating leases:
Operating lease assets	806,100			1,353,500
Less accumulated depreciation and amortization	(536,400		)	(1,218,200		)
Net investment in operating leases	269,700			135,300
Total net investment in leasing operations	$	44,020,500		$	37,541,300

As of December 27, 2014, the $44.0 million total net investment in leases consists of $19.8 million classified as current and $24.2 million classified as long-term. As of December 28, 2013, the $37.5 million total net investment in leases consists of $17.2 million classified as current and $20.3 million classified as long-term.

As of December 27, 2014, leased assets with two customers approximated 15% and 10%, respectively, of the Company’s total assets. As of December 2013, no customer had leased assets totaling more than 10% of the Company’s total assets.

Future minimum lease payments receivable under lease contracts and the amortization of unearned lease income, net of initial direct costs deferred, is as follows as of December 27, 2014:

	Direct Financing and Sales-Type Leases				Operating Leases
Fiscal Year	Minimum Lease Payments Receivable		Income Amortization		Minimum Lease Payments Receivable
2015	$	23,924,700	$	4,560,000	$	51,200
2016	13,166,600		1,373,200		—
2017	3,628,400		126,900		—
2018	20,200		1,000		—
2019	—		—		—
Thereafter	—		—		—
	$	40,739,900	$	6,061,100	$	51,200

The activity in the allowance for credit losses for leasing operations during 2014, 2013 and 2012, respectively, is as follows:

	December 27, 2014			December 28, 2013			December 29, 2012
Balance at beginning of period	$	822,700		$	775,800		$	803,800
Provisions charged to expense	62,900			(44,700		)	(47,600		)
Recoveries	106,900			127,500			251,000
Deductions for amounts written-off	(606,500		)	(35,900		)	(231,400		)
Balance at end of period	$	386,000		$	822,700		$	775,800

The Company’s investment in direct financing and sales-type leases (“Investment In Leases”) and allowance for credit losses by loss evaluation methodology are as follows:

	December 27, 2014				December 28, 2013
	Investment In Leases		Allowance for Credit Losses		Investment In Leases		Allowance for Credit Losses
Collectively evaluated for loss potential	$	44,136,800	$	386,000	$	38,228,700	$	822,700
Individually evaluated for loss potential	—		—		—		—
Total	$	44,136,800	$	386,000	$	38,228,700	$	822,700

The Company’s key credit quality indicator for its investment in direct financing and sales-type leases is the status of the lease, defined as accruing or non-accrual. Leases that are accruing income are considered to have a lower risk of loss. Non-accrual leases are those that the Company believes have a higher risk of loss. The following table sets forth information regarding the Company’s accruing and non-accrual leases. Delinquent balances are determined based on the contractual terms of the lease.

	December 27, 2014
	0-60 Days Delinquent and Accruing		61-90 Days Delinquent and Accruing		Over 90 Days Delinquent and Accruing		Non-Accrual		Total
Middle-Market	$	42,948,000	$	—	$	—	$	—	$	42,948,000
Small-Ticket	1,188,800		—		—		—		1,188,800
Total Investment in Leases	$	44,136,800	$	—	$	—	$	—	$	44,136,800

	December 28, 2013
	0-60 Days Delinquent and Accruing		61-90 Days Delinquent and Accruing		Over 90 Days Delinquent and Accruing		Non-Accrual		Total
Middle-Market	$	36,716,100	$	—	$	—	$	416,400	$	37,132,500
Small-Ticket	1,096,200		—		—		—		1,096,200
Total Investment in Leases	$	37,812,300	$	—	$	—	$	416,400	$	38,228,700

- Definition

The entire disclosure for lessor entity's leasing arrangements for operating, capital and leveraged leases.

+ References+ Details