Net Investment in Sales-Type Leases

12 Months Ended

Dec. 31, 2018

On a recurring basis, the Company enters into sales-type lease transactions with the majority varying in length from one to five years. The receivables as a result of these types of transactions are collateralized by the underlying equipment leased and consist of the following components at December 31, 2018 and December 31, 2017:



	December 31,
	2018			2017
	(In thousands)
Net minimum lease payments to be received	$	28,295		$	25,899
Less: unearned interest income portion	(2,477		)	(1,695		)
Net investment in sales-type leases	25,818			24,204
Less: short-term portion⁽¹⁾	(8,736		)	(8,769		)
Long-term net investment in sales-type leases	$	17,082		$	15,435

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⁽¹⁾	The short-term portion of the net investment in sales-type leases is included in other current assets in the Consolidated Balance Sheets.

The carrying amount of the Company’s sales-type lease receivables is a reasonable estimate of fair value, as the unearned interest income is immaterial.

The Company evaluates its sales-type leases individually and collectively for impairment. The allowance for credit losses was $0.2 million as of both December 31, 2018 and December 31, 2017.

At December 31, 2018, the future minimum lease payments under sales-type leases were as follows:



	December 31, 2018
	(In thousands)
2019	$	9,899
2020	7,018
2021	4,779
2022	4,084
2023	2,178
Thereafter	337
Total	$	28,295