8. Leases

Lessor arrangements

The Company has operating and sales-type leases for medical device equipment generated from its medical devices segment. The Company’s leases have remaining lease terms of less than one year to five years, some of which include options to extend the leases on a month-to-month basis if the customer does not notify the Company of the intention to return the equipment at the end of the lease term. The Company typically does not offer options to terminate the leases before the end of the lease term.

The components of lease income are as follows:



		Three Months Ended
		March 31,
(in thousands)	Classification	2020		2019

Sales-type lease selling price	Product revenue, net	$	—	$	—
Cost of underlying asset		—		—
Operating profit		$	—	$	—

Interest income on the lease receivable	Interest and other income, net	$	14	$	12

Initial direct costs incurred	Operating expense	$	—	$	—

Operating lease Income	Product revenue, net	$	1,087	$	1,237