Lease and Finance Receivables

9 Months Ended

Sep. 30, 2011

Long-term receivables and other assets and Lease and Finance Receivables [Abstract]

6. Lease and Finance Receivables

The Company leases computer hardware to customers generally under sales-type leases that are classified as lease receivables in the accompanying unaudited condensed consolidated balance sheets, in accordance with FASB ASC 840 Leases. In connection with those leases, the Company may sell related services, software and maintenance to its customers, which are classified as finance receivables in the accompanying unaudited condensed consolidated balance Sheets. The terms of the receivables from the sale of these related services are often similar to the terms of the leases of computer hardware; that is, receivables are interest bearing and are often due over a period of time that corresponds with the terms of the leased computer hardware.

The Company recognized revenue of $8.4 million and $12.6 million for the three months ended September 30, 2011 and 2010, respectively, from sales-type leases and related transactions and $40.1 million and $26.4 million for the nine months ended September 30, 2011 and 2010, respectively,. As of September 30, 2011, the Company had gross current and long-term outstanding lease and finance receivables of $13.3 million, compared with $29.1 million as of December 31, 2010.

The Company’s investments in short term and long term lease receivables were as follows as of (in thousands):


	September 30,			December 31,
	2011			2010
Future minimum lease payments receivable	$	8,707		$	3,673
Unearned income		(194	)		(133	)

	$	8,513		$	3,540

The Company’s investment in short term and long term finance receivables was as follows as of (in thousands):


	September 30,			December 31,
	2011			2010
Future minimum finance payments receivable	$	4,612		$	25,382
Unearned income		(518	)		(908	)

	$	4,094		$	24,474