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Lessor Leases
 9 Months Ended
Sep. 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 nine months ended September 30, 2024 and 2023:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In thousands)
Sales-type lease revenues$6,952 $14,388 $25,564 $27,960 
Cost of sales-type lease revenues(3,912)(7,141)(15,209)(14,183)
Selling profit on sales-type lease revenues$3,040 $7,247 $10,355 $13,777 
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, 2024 and December 31, 2023:
September 30,
2024		December 31,
2023
(In thousands)
Net minimum lease payments to be received$74,595 $65,017 
Less: Unearned interest income portion(12,321)(10,196)
Net investment in sales-type leases62,274 54,821 
Less: Current portion (1)
(11,699)(11,867)
Long-term investment in sales-type leases, net$50,575 $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:
September 30,
2024
(In thousands)
Remaining three months of 2024$3,795 
202514,238 
202612,627 
202711,080 
202810,094 
Thereafter22,761 
Total future minimum sales-type lease payments74,595 
Present value adjustment(12,321)
Total net investment in sales-type leases$62,274 
Operating Leases
The following table represents the Company’s income recognized from operating leases for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In thousands)
Rental income$1,230 $1,330 $2,797 $5,459 
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 nine months ended September 30, 2024 and 2023:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In thousands)
Sales-type lease revenues$6,952 $14,388 $25,564 $27,960 
Cost of sales-type lease revenues(3,912)(7,141)(15,209)(14,183)
Selling profit on sales-type lease revenues$3,040 $7,247 $10,355 $13,777 
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, 2024 and December 31, 2023:
September 30,
2024		December 31,
2023
(In thousands)
Net minimum lease payments to be received$74,595 $65,017 
Less: Unearned interest income portion(12,321)(10,196)
Net investment in sales-type leases62,274 54,821 
Less: Current portion (1)
(11,699)(11,867)
Long-term investment in sales-type leases, net$50,575 $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:
September 30,
2024
(In thousands)
Remaining three months of 2024$3,795 
202514,238 
202612,627 
202711,080 
202810,094 
Thereafter22,761 
Total future minimum sales-type lease payments74,595 
Present value adjustment(12,321)
Total net investment in sales-type leases$62,274 
Operating Leases
The following table represents the Company’s income recognized from operating leases for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In thousands)
Rental income$1,230 $1,330 $2,797 $5,459