Lease and Finance Receivables

12 Months Ended

Dec. 31, 2011

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

Lease and Finance Receivables

5. Lease and Finance Receivables

The Company leases computer hardware to customers generally under sales-type leases, which are classified as lease receivables in the accompanying 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 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 $44.8 million, $68.2 million and $99.5 million for the years ended December 31, 2011, 2010 and 2009, respectively, from sales-type leases and related transactions. As of December 31, 2011, the Company had current and long-term outstanding gross lease and finance receivables of $11.6 million, compared with $29.1 million as of December 31, 2010.

In 2010, as a result of the SBA Agreement, certain multiyear financing agreements were modified or terminated, which resulted in a $4.6 million write-off of net financing receivables. In addition, some other multiyear financing agreements were restructured to become due within the next 12 months, resulting in a $22.0 million decrease in accounts receivable and long-term receivables along with a corresponding $22.0 million decrease in accrued liabilities and other liabilities.

Future minimum payments for lease and finance receivables were as follows as of December 31, 2011 (in thousands):

		September 30,
2012	$	8,900
2013		1,497
2014		626
2015		366
Thereafter		213
Future minimum payments	$	11,602

The Company’s investments in lease receivables were as follows as of December 31 (in thousands):

		September 30,			September 30,
	2011			2010
Future minimum lease payments receivable	$	6,656		$	3,673
Unearned income		(248	)		(133	)
	$	6,408		$	3,540

The Company’s investment in finance receivables were as follows as of (in thousands):

		September 30,			September 30,
	2011			2010
Future minimum finance payments receivable	$	4,946		$	25,382
Unearned income		(788	)		(908	)
	$	4,158		$	24,474