|
Note 7. Net Investment in Sales-Type Leases
Our sales-type leases are for terms generally ranging up to five years. Sales-type lease receivables are collateralized by the underlying equipment. The components of our net investment in sales-type leases are as follows (in thousands):
|
|
|
September 30, |
|
December 31, |
|
|
|
|
2011 |
|
2010 |
|
|
Net minimum lease payments to be received |
|
$ |
15,472 |
|
$ |
16,284 |
|
|
Less unearned interest income portion |
|
1,636 |
|
1,843 |
|
|
Net investment in sales-type leases |
|
13,835 |
|
14,441 |
|
|
Less current portion(1) |
|
5,014 |
|
5,217 |
|
|
Non-current net investment in sales-type leases(2) |
|
$ |
8,821 |
|
$ |
9,224 |
|
The minimum lease payments under sales-type leases as of September 30, 2011 were as follows (in thousands):
|
2011 (remaining three months) |
|
$ |
1,580 |
|
|
2012 |
|
5,502 |
|
|
2013 |
|
3,649 |
|
|
2014 |
|
2,601 |
|
|
2015 |
|
1,594 |
|
|
Thereafter |
|
546 |
|
|
Total |
|
$ |
15,472 |
|
(1) A component of other current assets. This amount is net of allowance for doubtful accounts of $0.2 million as of September 30, 2011 and $0.1 million as of December 31, 2010.
(2) Net of allowance for doubtful accounts of $0.2 million as of September 30, 2011 and $0.3 million as of December 31, 2010.
The following table summarizes the credit losses and recorded investment in sales-type leases, excluding unearned interest, as of September 30, 2011 and December 31, 2010 (in thousands):
|
|
|
Allowance for Credit Losses |
|
Recorded Investment
in Sales-type Leases
Gross |
|
Recorded Investment
in Sales-type Leases
Net |
|
|
Credit loss disclosure for September 30, 2011: |
|
|
|
|
|
|
|
|
Accounts individually evaluated for impairment |
|
$ |
210 |
|
$ |
210 |
|
$ |
— |
|
|
Accounts collectively evaluated for impairment |
|
112 |
|
13,947 |
|
13,835 |
|
|
Ending balances: September 30, 2011 |
|
$ |
322 |
|
$ |
14,157 |
|
$ |
13,835 |
|
|
Credit loss disclosure for December 31, 2010: |
|
|
|
|
|
|
|
|
Accounts individually evaluated for impairment |
|
$ |
283 |
|
$ |
283 |
|
$ |
— |
|
|
Accounts collectively evaluated for impairment |
|
128 |
|
14,569 |
|
14,441 |
|
|
Ending balances: December 31, 2010 |
|
$ |
411 |
|
$ |
14,852 |
|
$ |
14,441 |
|
The following table summarizes the activity for the allowance for credit losses account for the investment in sales-type leases for the three months and nine months ended September 30, 2011 (in thousands):
|
|
|
Three Months Ended
September 30, 2011 |
|
Nine Months Ended
September 30, 2011 |
|
|
Allowance for credit losses, beginning of period |
|
$ |
353 |
|
$ |
411 |
|
|
Current period provision (reversal) |
|
(7 |
) |
(16 |
) |
|
Recoveries of amounts previously charged off |
|
(24 |
) |
(73 |
) |
|
Allowance for credit losses at September 30, 2011 |
|
$ |
322 |
|
$ |
322 |
| |