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Sales-type Leases
 12 Months Ended
May 31, 2016
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 a review of each customer’s credit profile, which may include the review of third party credit reports, customer financial statements and/or bank verifications. We monitor the credit quality of our sales-type lease portfolio based on payment activity and the related 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 were as follows at May 31:
 
2016
 
2015
Gross minimum lease payments receivable
$
3,701

 
$
6,109

Less—unearned interest
(120
)
 
(233
)
Net investment in sales-type lease receivables
$
3,581

 
$
5,876


The following table provides estimated future minimum lease payments by year related to sales-type leases:
Year ending May 31,
Future
Amortization
2017
$
2,949

2018
679

2019
73

2020
—

2021
—

 
$
3,701