3. Investment in Leasing Operations:

Investment in leasing operations consists of the following:


	December 29, 2018		December 30, 2017
Direct financing and sales-type leases:
Minimum lease payments receivable	$	40,822,400	$	36,119,700
Estimated residual value of equipment		4,741,200		4,762,700
Unearned lease income net of initial direct costs deferred		(6,739,900)		(5,371,900)
Security deposits		(4,118,300)		(4,526,000)
Equipment installed on leases not yet commenced		5,094,800		10,989,700
Total investment in direct financing and sales-type leases		39,800,200		41,974,200
Allowance for credit losses		(861,200)		(711,200)
Net investment in direct financing and sales-type leases		38,939,000		41,263,000
Operating leases:
Operating lease assets		777,000		1,045,400
Less accumulated depreciation and amortization		(713,000)		(1,030,800)
Net investment in operating leases		64,000		14,600
Total net investment in leasing operations	$	39,003,000	$	41,277,600

As of December 29, 2018, the $39.0 million total net investment in leases consists of $18.5 million classified as current and $20.5 million classified as long-term. As of December 30, 2017, the $41.3 million total net investment in leases consists of $15.3 million classified as current and $26.0 million classified as long-term.

As of December 29, 2018, leased assets with two customers approximated 24% and 11%, respectively, of the Company’s total assets. As of December 30, 2017, leased assets with one customer approximated 26% of the Company’s total assets. A portion of the lease payments receivable from these customers is assigned as collateral in non-recourse financing with financial institutions. See Note 8 – “Discounted Lease Rentals”.

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 29, 2018:


	Direct Financing and Sales-Type Leases				Operating Leases
	Minimum Lease		Income		Minimum Lease
Fiscal Year	Payments Receivable		Amortization		Payments Receivable
2019	$	25,060,400	$	5,350,300	$	76,900
2020		12,094,200		1,244,800		—
2021		3,641,700		142,900		—
2022		13,700		1,300		—
2023		8,000		500		—
Thereafter		4,400		100		—
	$	40,822,400	$	6,739,900	$	76,900

The activity in the allowance for credit losses for leasing operations during 2018, 2017 and 2016, respectively, is as follows:


	December 29, 2018		December 30, 2017		December 31, 2016
Balance at beginning of period	$	711,200	$	896,000	$	859,100
Provisions charged to expense		38,600		9,000		18,500
Recoveries		213,500		8,600		47,700
Deductions for amounts written-off		(102,100)		(202,400)		(29,300)
Balance at end of period	$	861,200	$	711,200	$	896,000

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 29, 2018				December 30, 2017
	Investment		Allowance for		Investment		Allowance for
	In Leases		Credit Losses		In Leases		Credit Losses
Collectively evaluated for loss potential	$	39,800,200		861,200	$	41,974,200	$	711,200
Individually evaluated for loss potential		—		—		—		—
Total	$	39,800,200	$	861,200	$	41,974,200	$	711,200

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 29, 2018
	0-60 Days		61-90 Days		Over 90 Days
	Delinquent		Delinquent		Delinquent and
	and Accruing		and Accruing		Accruing		Non-Accrual		Total
Middle-Market	$	38,395,000	$	—	$	—	$	70,000	$	38,465,000
Small-Ticket		1,335,200		—		—		—		1,335,200
Total Investment in Leases	$	39,730,200	$	—	$	—	$	70,000	$	39,800,200


	December 30, 2017
	0-60 Days		61-90 Days		Over 90 Days
	Delinquent		Delinquent		Delinquent and
	and Accruing		and Accruing		Accruing		Non-Accrual		Total
Middle-Market	$	40,657,500	$	133,700	$	—	$	—	$	40,791,200
Small-Ticket		1,183,000		—		—		—		1,183,000
Total Investment in Leases	$	41,840,500	$	133,700	$	—	$	—	$	41,974,200