Sales-type Leases

3 Months Ended

Aug. 31, 2011

Sales-Type Leases [Abstract]

Sales-Type Leases

Note 8: 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. There were no balances due for sales-type receivables beyond 90 days as of August 31, 2011. 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:

	August 31,			May 31,
	2011			2011
Gross minimum lease payments receivable	$	8,274		$	7,834
Less — unearned interest		(367	)		(356	)
Net investment in sales-type lease receivables	$	7,907		$	7,478

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

Year ending May 31,
2012 (remaining)	$	5,231
2013		2,530
2014		512
2015		1
	$	8,274