6. Investment in Leasing Operations:

Investment in leasing operations consists of the following:


	March 31, 2018		December 30, 2017
Direct financing and sales-type leases:
Minimum lease payments receivable	$	42,599,200	$	36,119,700
Estimated residual value of equipment		3,697,900		4,762,700
Unearned lease income net of initial direct costs deferred		(8,222,800)		(5,371,900)
Security deposits		(4,480,500)		(4,526,000)
Equipment installed on leases not yet commenced		8,996,200		10,989,700
Total investment in direct financing and sales-type leases		42,590,000		41,974,200
Allowance for credit losses		(780,600)		(711,200)
Net investment in direct financing and sales-type leases		41,809,400		41,263,000
Operating leases:
Operating lease assets		1,211,900		1,045,400
Less accumulated depreciation and amortization		(1,114,800)		(1,030,800)
Net investment in operating leases		97,100		14,600
Total net investment in leasing operations	$	41,906,500	$	41,277,600

As of March 31, 2018, the $41.9 million total net investment in leases consists of $15.6 million classified as current and $26.3 million classified as long-term. As of December 30, 2017, the $41.3 million total net investment in leases consists of $15.3 million classified as current and $26.0 million classified as long-term.

As of March 31, 2018, leased assets with one customer approximated 27% of the Company’s total assets. A portion of the lease payments receivable from this customer is assigned as collateral in non-recourse financing with financial institutions. See Note 10 – “Discounted Lease Rentals”.

Future minimum lease payments receivable under lease contracts and the amortization of unearned lease income, net of initial direct costs deferred, is as follows for the remainder of fiscal 2018 and the full fiscal years thereafter as of March 31, 2018:


	Direct Financing and Sales-Type Leases				Operating Leases
	Minimum Lease		Income		Minimum Lease
Fiscal Year	Payments Receivable		Amortization		Payments Receivable
2018	$	17,724,200	$	4,697,000	$	126,400
2019		19,073,800		3,247,400		76,900
2020		5,648,100		274,000		—
2021		127,000		2,500		—
2022		13,700		1,300		—
Thereafter		12,400		600		—
	$	42,599,200	$	8,222,800	$	203,300

The activity in the allowance for credit losses for leasing operations during the first three months of 2018 and 2017, respectively, is as follows:


	March 31, 2018		April 1, 2017
Balance at beginning of period	$	711,200	$	896,000
Provisions charged to expense		95,000		(1,400)
Recoveries		(25,600)		7,700
Deductions for amounts written-off		—		—
Balance at end of period	$	780,600	$	902,300

The Company’s investment in direct financing and sales-type leases (“Investment In Leases”) and allowance for credit losses by loss evaluation methodology are as follows:


	March 31, 2018				December 30, 2017
	Investment		Allowance for		Investment		Allowance for
	In Leases		Credit Losses		In Leases		Credit Losses
Collectively evaluated for loss potential	$	42,590,000	$	780,600	$	41,974,200	$	711,200
Individually evaluated for loss potential		—		—		—		—
Total	$	42,590,000	$	780,600	$	41,974,200	$	711,200

The Company’s key credit quality indicator for its investment in direct financing and sales-type leases is the status of the lease, defined as accruing or non-accrual. Leases that are accruing income are considered to have a lower risk of loss. Non-accrual leases are those that the Company believes have a higher risk of loss. The following table sets forth information regarding the Company’s accruing and non-accrual leases. Delinquent balances are determined based on the contractual terms of the lease.


	March 31, 2018
	0-60 Days		61-90 Days		Over 90 Days
	Delinquent		Delinquent		Delinquent and
	and Accruing		and Accruing		Accruing		Non-Accrual		Total
Middle-Market	$	41,434,300	$	—	$	—	$	—	$	41,434,300
Small-Ticket		1,155,700		—		—		—		1,155,700
Total Investment in Leases	$	42,590,000	$	—	$	—	$	—	$	42,590,000


	December 30, 2017
	0-60 Days		61-90 Days		Over 90 Days
	Delinquent		Delinquent		Delinquent and
	and Accruing		and Accruing		Accruing		Non-Accrual		Total
Middle-Market	$	40,657,500	$	133,700	$	—	$	—	$	40,791,200
Small-Ticket		1,183,000		—		—		—		1,183,000
Total Investment in Leases	$	41,840,500	$	133,700	$	—	$	—	$	41,974,200