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Lease Arrangements

12 Months Ended

Dec. 31, 2018

Note 9 – Lease Arrangements

We are the lessor in sales-type lease arrangements for network equipment, which have terms of 18 months to five years. The net investment in sales-type leases consists of lease receivables less unearned income. Collectability of sales-type leases is evaluated periodically at an individual customer level. At December 31, 2018 and 2017, we had no allowance for credit losses for our net investment in sales-type leases. As of December 31, 2018 and 2017, the components of the net investment in sales-type leases were as follows:

(In thousands)	2018		2017
Current minimum lease payments receivable (included in other receivables)	$	11,339	$	11,325
Non-current minimum lease payments receivable (included in other assets)		1,670		2,913
Total minimum lease payments receivable		13,009		14,238
Less: Current unearned revenue		631		707
Less: Non-current unearned revenue		473		787
Net investment in sales-type leases	$	11,905	$	12,744

Future minimum lease payments to be received from sales-type leases as of December 31, 2018 are as follows:

(In thousands)	Amount ⁽¹⁾
2019	$	11,339
2020		990
2021		431
2022		189
2023		60
Total	$	13,009

(1)

$9.4 million of these future minimum lease payments relate to one of our customers who filed for Chapter 11 bankruptcy in February 2019. Therefore, there is a potential risk of uncollectibility related to any outstanding balance. See Note 18 of Notes to Consolidated Financial Statements for additional information.