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Net Investment in Sales-Type Leases

6 Months Ended

Jun. 30, 2011

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):

	June 30,		December 31,
	2011		2010
Net minimum lease payments to be received	$	15,706	$	16,284
Less unearned interest income portion	1,789		1,843
Net investment in sales-type leases	13,917		14,441
Less current portion(1)	5,004		5,217
Non-current net investment in sales-type leases(2)	$	8,913	$	9,224

The minimum lease payments under sales-type leases as of June 30, 2011 were as follows (in thousands):

2011 (remaining six months)	$	3,193
2012	5,202
2013	3,355
2014	2,296
2015	1,330
Thereafter	330
Total	$	15,706

(1) A component of other current assets. This amount is net of allowance for doubtful accounts of $0.2 million as of June 30, 2011 and $0.1 million as of December 31, 2010.

(2) Net of allowance for doubtful accounts of $0.2 million as of June 30, 2011 and $0.3 million as of December 31, 2010.

The following table summarizes the credit losses and recorded investment in sales-type leases, excluding unearned interest, as of June 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 June 30, 2011:
Accounts individually evaluated for impairment	$	234	$	234	$	—
Accounts collectively evaluated for impairment	119		14,036		13,917
Ending balances: June 30, 2011	$	353	$	14,270	$	13,917
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 three months and six months ended June 30, 2011 (in thousands):

	Three Months Ended June 30, 2011			Six Months Ended June 30, 2011
Allowance for credit losses, beginning of period	$	380		$	411
Current period provision (reversal)	(5		)	(9		)
Recoveries of amounts previously charged off	(22		)	(49		)
Allowance for credit losses at June 30, 2011	$	353		$	353