XML 29 R18.htm IDEA: XBRL DOCUMENT
v3.21.2

Lessor Leases | 9 Months Ended
--- | ---
Sep. 30, 2021
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 Company optimizes cash flows by selling a majority of its non-U.S. government sales-type leases to third-party leasing finance companies on a non-recourse basis. The Company has no obligation to the leasing company once the lease has been sold. Some of the Company's sales-type leases, mostly those relating to U.S. government hospitals which comprise approximately 69% of the lease receivable balance, are retained in-house. The following table presents the Company’s income recognized from sales-type leases for the three and nine months ended September 30, 2021 and 2020:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
| (In thousands)
Sales-type lease revenues | $ | 3,892 |  |  | $ | 6,033 |  |  | $ | 14,503 |  |  | $ | 19,037 |
Cost of sales-type lease revenues | (1,699) |  |  | (2,486) |  |  | (5,678) |  |  | (7,710) |
Selling profit on sales-type lease revenues | $ | 2,193 |  |  | $ | 3,547 |  |  | $ | 8,825 |  |  | $ | 11,327 |
Interest income on sales-type lease receivables | $ | 453 |  |  | $ | 450 |  |  | $ | 1,389 |  |  | $ | 1,437 |
The receivables as a result of these types of transactions are collateralized by the underlying equipment leased and consist of the following components at September 30, 2021 and December 31, 2020:
| September 30, 2021 |  | December 31, 2020
| (In thousands)
Net minimum lease payments to be received | $ | 32,109 |  |  | $ | 35,331 |
Less: Unearned interest income portion | (2,393) |  |  | (2,929) |
Net investment in sales-type leases | 29,716 |  |  | 32,402 |
Less: Current portion (1) | (10,529) |  |  | (10,246) |
Long-term investment in sales-type leases, net | $ | 19,187 |  |  | $ | 22,156 |
_________________________________________________ (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 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:
| September 30, 2021
| (In thousands)
Remaining three months of 2021 | $ | 2,876 |
2022 | 11,012 |
2023 | 8,123 |
2024 | 5,347 |
2025 | 3,409 |
Thereafter | 1,342 |
Total future minimum sales-type lease payments | 32,109 |
Present value adjustment | (2,393) |
Total net investment in sales-type leases | $ | 29,716 |
Operating Leases The Company entered into certain leasing agreements that were classified as operating leases prior to the adoption of ASC 842, Leases. These agreements in place prior to January 1, 2019 continue to be treated as operating leases, however any 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 ASC 842. 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 nine months ended September 30, 2021 and 2020:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
| (In thousands)
Rental income | $ | 2,474 |  |  | $ | 2,863 |  |  | $ | 8,278 |  |  | $ | 8,864 |
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 Company optimizes cash flows by selling a majority of its non-U.S. government sales-type leases to third-party leasing finance companies on a non-recourse basis. The Company has no obligation to the leasing company once the lease has been sold. Some of the Company's sales-type leases, mostly those relating to U.S. government hospitals which comprise approximately 69% of the lease receivable balance, are retained in-house. The following table presents the Company’s income recognized from sales-type leases for the three and nine months ended September 30, 2021 and 2020:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
| (In thousands)
Sales-type lease revenues | $ | 3,892 |  |  | $ | 6,033 |  |  | $ | 14,503 |  |  | $ | 19,037 |
Cost of sales-type lease revenues | (1,699) |  |  | (2,486) |  |  | (5,678) |  |  | (7,710) |
Selling profit on sales-type lease revenues | $ | 2,193 |  |  | $ | 3,547 |  |  | $ | 8,825 |  |  | $ | 11,327 |
Interest income on sales-type lease receivables | $ | 453 |  |  | $ | 450 |  |  | $ | 1,389 |  |  | $ | 1,437 |
The receivables as a result of these types of transactions are collateralized by the underlying equipment leased and consist of the following components at September 30, 2021 and December 31, 2020:
| September 30, 2021 |  | December 31, 2020
| (In thousands)
Net minimum lease payments to be received | $ | 32,109 |  |  | $ | 35,331 |
Less: Unearned interest income portion | (2,393) |  |  | (2,929) |
Net investment in sales-type leases | 29,716 |  |  | 32,402 |
Less: Current portion (1) | (10,529) |  |  | (10,246) |
Long-term investment in sales-type leases, net | $ | 19,187 |  |  | $ | 22,156 |
_________________________________________________ (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 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:
| September 30, 2021
| (In thousands)
Remaining three months of 2021 | $ | 2,876 |
2022 | 11,012 |
2023 | 8,123 |
2024 | 5,347 |
2025 | 3,409 |
Thereafter | 1,342 |
Total future minimum sales-type lease payments | 32,109 |
Present value adjustment | (2,393) |
Total net investment in sales-type leases | $ | 29,716 |
Operating Leases The Company entered into certain leasing agreements that were classified as operating leases prior to the adoption of ASC 842, Leases. These agreements in place prior to January 1, 2019 continue to be treated as operating leases, however any 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 ASC 842. 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 nine months ended September 30, 2021 and 2020:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
| (In thousands)
Rental income | $ | 2,474 |  |  | $ | 2,863 |  |  | $ | 8,278 |  |  | $ | 8,864 |

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: | dtr-types: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/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: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration