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Lessor Leases
9 Months Ended
Sep. 30, 2025
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 SaaS and Expert Services products, including Central Pharmacy Dispensing Service and IV Compounding Service, to third-party leasing finance companies on a non-recourse basis. The Company generally 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:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(In thousands)
Sales-type lease revenues$4,562 $6,952 $17,011 $25,564 
Cost of sales-type lease revenues(2,892)(3,912)(9,931)(15,209)
Selling profit on sales-type lease revenues$1,670 $3,040 $7,080 $10,355 
The receivables as a result of these types of transactions are collateralized by the underlying equipment leased and consist of the following components:
September 30,
2025
December 31,
2024
(In thousands)
Net minimum lease payments to be received$80,118 $77,976 
Less: Unearned interest income portion(12,406)(12,757)
Net investment in sales-type leases67,712 65,219 
Less: Current portion (1)
(13,394)(12,475)
Long-term investment in sales-type leases, net$54,318 $52,744 
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(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,
2025
(In thousands)
Remaining three months of 2025$4,226 
202616,222 
202715,204 
202814,093 
202911,454 
Thereafter18,919 
Total future minimum sales-type lease payments80,118 
Present value adjustment(12,406)
Total net investment in sales-type leases$67,712