Lease Receivables

6 Months Ended

Jun. 30, 2013

Lease Receivables

Lease Receivables

7. Lease Receivables

We occasionally enter into sales-type lease agreements with our customers resulting from the sale of certain products. Our lease receivables are recorded at cost within the accounts receivable and long-term lease receivables balances on our balance sheet and are due in installments over the lives of the leases. Cash received and applied against the receivable balance is recorded within changes in operating assets and liabilities in the net cash provided by operating activities section of the statement of cash flows.  Finance income is derived over the term of the sales-type lease arrangement as the unearned income on financed sales-type leases is earned. Unearned income is amortized over the life of the lease using the interest method.  The present value of net investment in sales-type lease receivables of $1.8 million and $1.0 million at June 30, 2013 and December 31, 2012, respectively, is reflected net of unearned income of $73,000 and $60,000 at June 30, 2013 and December 31, 2012, respectively. As of June 30, 2013, scheduled maturities of minimum lease payments receivable were as follows for the fiscal years ended December 31:

	(in thousands)
Remainder of 2013	$	667
2014	774
2015	348
	1,789
Less: Current portion	(986		)
Long-term sales-type lease receivable	$	803

Lease receivables are individually evaluated for impairment. In the event we determine that a lease receivable may not be paid, we include in our allowance an amount for the outstanding balance related to the lease receivable. At June 30, 2013, there were no amounts past due related to lease receivables.