Net Investment in Sales-Type Leases

12 Months Ended

Dec. 31, 2011

Net Investment in Sales-Type Leases

Net Investment in Sales-Type Leases

Note 7. Net Investment in Sales-Type Leases

        Our sales-type leases are for terms generally ranging up to five years. Sales-type lease receivables are collateralized by the underlying equipment. The components of our net investment in sales-type leases are as follows (in thousands):

	December 31,
	2011		2010
Net minimum lease payments to be received	$	15,063	$	16,284
Less unearned interest income portion		1,229		1,843
Net investment in sales-type leases		13,834		14,441
Less current portion(1)		5,049		5,217
Non-current net investment in sales-type leases(2)	$	8,785	$	9,224

(1)

A component of other current assets. This amount is net of allowance for doubtful accounts of $0.2 million at December 31, 2011 and $0.1 at December 31, 2010.

(2)

Net of allowance for doubtful accounts of $0.1 million and $0.3 million as of December 31, 2011 and December 31, 2010, respectively.

        The minimum lease payments for each of the five succeeding fiscal years are as follows (in thousands):

2012	$	5,664
2013		3,860
2014		2,806
2015		1,826
2016		907
Total	$	15,063

        The following table summarizes the credit losses and recorded investment in sales-type leases, excluding unearned interest, as of December 30, 2011 and December 31, 2010 (in thousands):

	Allowance for Credit Losses		Recorded Investment in Sales-type Leases Gross		Recorded Investment in Sales-type Leases Net
Credit loss disclosure for December 30, 2011:
Accounts individually evaluated for impairment	$	178	$	178	$	—
Accounts collectively evaluated for impairment		106		13,940		13,834
Ending balances: December 30, 2011	$	284	$	14,118	$	13,834
Credit loss disclosure for December 31, 2010:
Accounts individually evaluated for impairment	$	283	$	283	$	—
Accounts collectively evaluated for impairment		128		14,569		14,441
Ending balances: December 31, 2010	$	411	$	14,852	$	14,441

        The following table summarizes the activity for the allowance for credit losses account for the investment in sales-type leases for the year ended December 30, 2011 (in thousands):

	Year Ended December 30, 2011
Allowance for credit losses, December 31, 2010	$	411
Current period provision (reversal)		(22	)
Recoveries of amounts previously charged off		(105	)
Allowance for credit losses at December 31, 2011	$	284