Allowance for Credit Losses

9 Months Ended

Sep. 30, 2011

Allowance for Credit Losses [Abstract]

ALLOWANCE FOR CREDIT LOSSES

NOTE 7: ALLOWANCE FOR CREDIT LOSSES

Trade Receivables The Company evaluates the collectability of trade receivables based on (1) a percentage of sales related to historical loss experience and current trends and (2) periodic adjustments for known events such as specific customer circumstances and changes in the aging of accounts receivable balances. After all efforts at collection have been unsuccessful, the account is deemed uncollectible and is written off.

Financing Receivables The Company evaluates the collectability of notes and finance lease receivables (collectively, financing receivables) on a customer-by-customer basis and evaluates specific customer circumstances, aging of invoices, credit risk changes and payment patterns and historical loss experience. When the collectability is determined to be at risk based on the above criteria, the Company records the allowance for credit losses which represents the Company’s current exposure less estimated reimbursement from insurance claims. After all efforts at collection have been unsuccessful, the account is deemed uncollectible and is written off.

The following table summarizes the Company’s allowance for credit losses and recorded investment in financing receivables:

	Finance Leases			Notes Receivable			Total
Allowance for credit losses
Balance January 1, 2011	$	378		$	470		$	848
Provision for credit losses		47			1,872			1,919
Recoveries		111			5,454			5,565
Write-offs		(365	)		(5,956	)		(6,321	)
Balance individually evaluated for impairment	$	171		$	1,840		$	2,011
Balance collectively evaluated for impairment		—			—			—
Balance September 30, 2011	$	171		$	1,840		$	2,011
Recorded investment in financing receivables
Balance individually evaluated for impairment	$	105,468		$	12,768		$	118,236
Balance collectively evaluated for impairment		—			—			—
Balance September 30, 2011	$	105,468		$	12,768		$	118,236

The Company records interest income and any fees or costs related to financing receivables using the effective interest method over the term of the lease or loan. The Company reviews the aging of its financing receivables to determine past due and delinquent accounts. Credit quality is reviewed at inception and is re-evaluated as needed based on customer specific circumstances. Receivable balances greater than 60 days past due are reviewed and may be placed on nonaccrual status based on customer-specific circumstances. Upon receipt of payment on nonaccrual financing receivables, interest income is recognized and accrual of interest is resumed once the account has been made current or the specific circumstances have been resolved.

As of September 30, 2011 and December 31, 2010, the recorded investment in past-due finance lease receivables on nonaccrual status was $971 and $531, respectively. The recorded investment in finance lease receivables past due 90 days or more and still accruing interest was $1,491 and $560 as of September 30, 2011 and December 31, 2010, respectively. The recorded investment in impaired notes receivable was $1,840 and was fully reserved as of September 30, 2011. The recorded investment in impaired notes receivable and the related allowance was $7,513 and $470, respectively, as of December 31, 2010. The net investment in impaired notes receivable is expected to be recovered from insurance claims. The following table summarizes the Company’s aging of past-due notes receivable balances as of September 30, 2011:

30-59 days past due	$	—
60-89 days past due		—
> 89 days past due		1,426
Total past due	$	1,426