XML 26 R16.htm IDEA: XBRL DOCUMENT
v3.19.2

Lessor Leases | 6 Months Ended
--- | ---
Jun. 30, 2019
Leases [Abstract] |
Lessor Leases | Lessor Leases Sales-Type Leases On a recurring basis, the Company enters into multi-year, sales-type lease agreements, with the majority varying in length from one to five years. The following table presents the Company’s income recognized from sales-type leases for the three and six months ended June 30, 2019 and 2018:
| Three months ended June 30, |  | Six months ended June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
| (In thousands)
Sales-type lease revenues | $ | 13,309 |  |  | $ | 7,533 |  |  | $ | 24,816 |  |  | $ | 17,390 |
Interest income on sales-type lease receivables | $ | 399 |  |  | $ | 314 |  |  | 808 |  |  | 581 |
The receivables as a result of these types of transactions are collateralized by the underlying equipment leased and consist of the following components at June 30, 2019 and December 31, 2018:
| June 30, 2019 |  | December 31, 2018
| (In thousands)
Net minimum lease payments to be received | $ | 33,279 |  |  | $ | 28,295 |
Less: Unearned interest income portion | (3,047 | ) |  | (2,477 | )
Net investment in sales-type leases | 30,232 |  |  | 25,818 |
Less: Current portion (1) | (9,191 | ) |  | (8,736 | )
Long-term net investment in sales-type leases | $ | 21,041 |  |  | $ | 17,082 |
_________________________________________________
(1) | The current portion of the net investment in sales-type leases is included in other current assets in the Condensed Consolidated Balance Sheets.
The carrying amount of the Company’s sales-type lease receivables is a reasonable estimate of fair value. The Company evaluates its sales-type leases individually and collectively for impairment. The allowance for credit losses was $0.2 million as of both June 30, 2019 and December 31, 2018. The maturity schedule of future minimum lease payments under sales-type leases retained in-house and the reconciliation to the net investment in sales-type leases reported on the Condensed Consolidated Balance Sheets was as follows:
| June 30, 2019
| (In thousands)
Remaining six months of 2019 | $ | 6,138 |
2020 | 9,088 |
2021 | 6,714 |
2022 | 6,017 |
2023 | 4,027 |
Thereafter | 1,295 |
Total future minimum sales-type lease payments | $ | 33,279 |
Present value adjustment | (3,047 | )
Total net investment in sales-type leases | $ | 30,232 |
Operating Leases The Company entered into certain leasing agreements that were classified as operating leases prior to the adoption of the new lease accounting standard. These agreements in place prior to January 1, 2019 will continue to be treated as operating leases, however any new leasing agreements entered into on or after January 1, 2019 under these programs are classified and accounted for as sales-type leases in accordance with the new lease accounting standard. The operating lease arrangements generally have initial terms of one to seven years. The following table represents the Company’s income recognized from operating leases for the three and six months ended June 30, 2019 and 2018:
| Three months ended June 30, |  | Six months ended June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
| (In thousands)
Rental income | $ | 3,365 |  |  | $ | 3,011 |  |  | $ | 6,652 |  |  | $ | 5,801 |
The net carrying value of the leased equipment under operating leases was $2.4 million and $2.6 million, which includes accumulated depreciation of $1.3 million and $1.2 million, as of June 30, 2019 and December 31, 2018, respectively. Depreciation expense of the leased equipment for the three months ended June 30, 2019 and 2018 was $0.3 million and $0.1 million, respectively, and depreciation expense of the leased equipment for the six months ended June 30, 2019 and 2018 was $0.4 million and $0.2 million, respectively. The maturity schedule of future minimum lease payments under operating leases was as follows:
| June 30, 2019
| (In thousands)
Remaining six months of 2019 | 6,790 |
2020 | 9,332 |
2021 | 7,033 |
2022 | 5,051 |
2023 | 2,901 |
Thereafter | 1,197 |
Total future minimum operating lease payments | $ | 32,304 |
Lessor Leases | Lessor Leases Sales-Type Leases On a recurring basis, the Company enters into multi-year, sales-type lease agreements, with the majority varying in length from one to five years. The following table presents the Company’s income recognized from sales-type leases for the three and six months ended June 30, 2019 and 2018:
| Three months ended June 30, |  | Six months ended June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
| (In thousands)
Sales-type lease revenues | $ | 13,309 |  |  | $ | 7,533 |  |  | $ | 24,816 |  |  | $ | 17,390 |
Interest income on sales-type lease receivables | $ | 399 |  |  | $ | 314 |  |  | 808 |  |  | 581 |
The receivables as a result of these types of transactions are collateralized by the underlying equipment leased and consist of the following components at June 30, 2019 and December 31, 2018:
| June 30, 2019 |  | December 31, 2018
| (In thousands)
Net minimum lease payments to be received | $ | 33,279 |  |  | $ | 28,295 |
Less: Unearned interest income portion | (3,047 | ) |  | (2,477 | )
Net investment in sales-type leases | 30,232 |  |  | 25,818 |
Less: Current portion (1) | (9,191 | ) |  | (8,736 | )
Long-term net investment in sales-type leases | $ | 21,041 |  |  | $ | 17,082 |
_________________________________________________
(1) | The current portion of the net investment in sales-type leases is included in other current assets in the Condensed Consolidated Balance Sheets.
The carrying amount of the Company’s sales-type lease receivables is a reasonable estimate of fair value. The Company evaluates its sales-type leases individually and collectively for impairment. The allowance for credit losses was $0.2 million as of both June 30, 2019 and December 31, 2018. The maturity schedule of future minimum lease payments under sales-type leases retained in-house and the reconciliation to the net investment in sales-type leases reported on the Condensed Consolidated Balance Sheets was as follows:
| June 30, 2019
| (In thousands)
Remaining six months of 2019 | $ | 6,138 |
2020 | 9,088 |
2021 | 6,714 |
2022 | 6,017 |
2023 | 4,027 |
Thereafter | 1,295 |
Total future minimum sales-type lease payments | $ | 33,279 |
Present value adjustment | (3,047 | )
Total net investment in sales-type leases | $ | 30,232 |
Operating Leases The Company entered into certain leasing agreements that were classified as operating leases prior to the adoption of the new lease accounting standard. These agreements in place prior to January 1, 2019 will continue to be treated as operating leases, however any new leasing agreements entered into on or after January 1, 2019 under these programs are classified and accounted for as sales-type leases in accordance with the new lease accounting standard. The operating lease arrangements generally have initial terms of one to seven years. The following table represents the Company’s income recognized from operating leases for the three and six months ended June 30, 2019 and 2018:
| Three months ended June 30, |  | Six months ended June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
| (In thousands)
Rental income | $ | 3,365 |  |  | $ | 3,011 |  |  | $ | 6,652 |  |  | $ | 5,801 |
The net carrying value of the leased equipment under operating leases was $2.4 million and $2.6 million, which includes accumulated depreciation of $1.3 million and $1.2 million, as of June 30, 2019 and December 31, 2018, respectively. Depreciation expense of the leased equipment for the three months ended June 30, 2019 and 2018 was $0.3 million and $0.1 million, respectively, and depreciation expense of the leased equipment for the six months ended June 30, 2019 and 2018 was $0.4 million and $0.2 million, respectively. The maturity schedule of future minimum lease payments under operating leases was as follows:
| June 30, 2019
| (In thousands)
Remaining six months of 2019 | 6,790 |
2020 | 9,332 |
2021 | 7,033 |
2022 | 5,051 |
2023 | 2,901 |
Thereafter | 1,197 |
Total future minimum operating lease payments | $ | 32,304 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of lessor's sales-type leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
Name: | us-gaap_LessorSalesTypeLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 1 -URI http://asc.fasb.org/extlink&oid=82846649&loc=d3e38371-112697 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 3 -URI http://asc.fasb.org/extlink&oid=82846649&loc=d3e38371-112697 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
Name: | us-gaap_OperatingLeasesOfLessorDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration