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Lessor Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Lessor Leases Lessor Leases
Sales-Type Leases
The Company enters into non-cancelable sales-type lease arrangements with the leases varying in length from one to ten years. The Company optimizes cash flows by selling a majority of its sales-type leases, other than those relating to U.S. government hospitals and Advanced Services products, including Central Pharmacy Dispensing Service and IV Compounding Service, 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.
The following table presents the Company’s income recognized from sales-type leases for the three and six months ended June 30, 2024 and 2023:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(In thousands)
Sales-type lease revenues$11,576 $7,856 $18,612 $13,572 
Cost of sales-type lease revenues(7,110)(4,380)(11,297)(7,042)
Selling profit on sales-type lease revenues$4,466 $3,476 $7,315 $6,530 
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, 2024 and December 31, 2023:
June 30,
2024		December 31,
2023
(In thousands)
Net minimum lease payments to be received$75,410 $65,017 
Less: Unearned interest income portion(12,533)(10,196)
Net investment in sales-type leases62,877 54,821 
Less: Current portion (1)
(12,575)(11,867)
Long-term investment in sales-type leases, net50,302 42,954 
_________________________________________________
(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:
June 30,
2024
(In thousands)
Remaining six months of 2024$8,163 
202514,493 
202612,431 
202710,780 
20289,692 
Thereafter19,851 
Total future minimum sales-type lease payments75,410 
Present value adjustment(12,533)
Total net investment in sales-type leases$62,877 
Operating Leases
The following table represents the Company’s income recognized from operating leases for the three and six months ended June 30, 2024 and 2023:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(In thousands)
Rental income$711 $1,870 $1,567 $4,129 
Lessor Leases Lessor Leases
Sales-Type Leases
The Company enters into non-cancelable sales-type lease arrangements with the leases varying in length from one to ten years. The Company optimizes cash flows by selling a majority of its sales-type leases, other than those relating to U.S. government hospitals and Advanced Services products, including Central Pharmacy Dispensing Service and IV Compounding Service, 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.
The following table presents the Company’s income recognized from sales-type leases for the three and six months ended June 30, 2024 and 2023:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(In thousands)
Sales-type lease revenues$11,576 $7,856 $18,612 $13,572 
Cost of sales-type lease revenues(7,110)(4,380)(11,297)(7,042)
Selling profit on sales-type lease revenues$4,466 $3,476 $7,315 $6,530 
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, 2024 and December 31, 2023:
June 30,
2024		December 31,
2023
(In thousands)
Net minimum lease payments to be received$75,410 $65,017 
Less: Unearned interest income portion(12,533)(10,196)
Net investment in sales-type leases62,877 54,821 
Less: Current portion (1)
(12,575)(11,867)
Long-term investment in sales-type leases, net50,302 42,954 
_________________________________________________
(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:
June 30,
2024
(In thousands)
Remaining six months of 2024$8,163 
202514,493 
202612,431 
202710,780 
20289,692 
Thereafter19,851 
Total future minimum sales-type lease payments75,410 
Present value adjustment(12,533)
Total net investment in sales-type leases$62,877 
Operating Leases
The following table represents the Company’s income recognized from operating leases for the three and six months ended June 30, 2024 and 2023:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(In thousands)
Rental income$711 $1,870 $1,567 $4,129