Sales-Type Leases

9 Months Ended

Feb. 28, 2014

Leases [Abstract]

Sales-Type Leases

Sales-Type Leases

We have certain customer leases providing bargain purchase options, which are accounted for as sales-type leases. Interest income is recognized over the life of the lease using the effective interest method.

The initial acceptance of customer finance arrangements is based on an in-depth review of each customer’s credit profile, including review of third party credit reports, customer financial statements and bank verifications. We monitor the credit quality of our sales-type lease portfolio based on payment activity that drives the finance lease receivable aging. This credit quality is assessed on a monthly basis. Our historical losses on finance lease receivables are insignificant, and therefore we do not have a specific allowance for credit losses.

The minimum lease payments receivable and the net investment included in other assets for such leases were as follows:

	February 28, 2014			May 31, 2013
Gross minimum lease payments receivable	$	9,130		$	9,862
Less – unearned interest	(346		)	(425		)
Net investment in sales-type lease receivables	$	8,784		$	9,437

The following table provides estimated future minimum lease payments receivable related to sales-type leases:

Year ending May 31,
2014 (remaining)	$	1,987
2015	5,592
2016	1,365
2017	185
2018	1
	$	9,130