Investment in Leasing Operations:

12 Months Ended

Dec. 31, 2011

Investment in Leasing Operations:

Investment in Leasing Operations:

4.             Investment in Leasing Operations:

Investment in leasing operations consists of the following:

	December 31, 2011			December 25, 2010
Direct financing and sales-type leases:
Minimum lease payments receivable	$	27,413,300		$	30,244,700
Estimated residual value of equipment	2,764,400			3,449,400
Unearned lease income net of initial direct costs deferred	(4,217,000		)	(4,925,200		)
Security deposits	(2,448,800		)	(2,044,900		)
Equipment installed on leases not yet commenced	6,489,200			4,806,000
Total investment in direct financing and sales-type leases	30,001,100			31,530,000
Allowance for credit losses	(803,800		)	(907,800		)
Net investment in direct financing and sales-type leases	29,197,300			30,622,200
Operating leases:
Operating lease assets	1,218,900			520,200
Less accumulated depreciation and amortization	(567,300		)	(483,200		)
Net investment in operating leases	651,600			37,000
Net investment in leasing operations	$	29,848,900		$	30,659,200

As of December 31, 2011, the $29.8 million total net investment in leases consists of $11.7 million classified as current and $18.1 million classified as long-term.  As of December 25, 2010, the $30.7 million total net investment in leases consists of $13.9 million classified as current and $16.8 million classified as long-term.

As of December 31, 2011, leased assets with one customer approximated 12% of the Company’s total assets.  As of December 25, 2010, no customer had leased assets totaling more than 10% of the Company’s total assets.

Future minimum lease payments receivable under lease contracts and the amortization of unearned lease income, net of initial direct costs deferred, is as follows as of December 31, 2011:

	Direct Financing and Sales-Type Leases				Operating Leases
Fiscal Year	Minimum Lease Payments Receivable		Income  Amortization		Minimum Lease Payments Receivable
2012	$	14,532,700	$	2,786,800	$	1,570,000
2013	7,476,600		1,055,100		1,444,900
2014	3,699,600		291,300		120,400
2015	1,205,500		77,700		—
2016	498,900		6,100		—
Thereafter	—		—		—
	$	27,413,300	$	4,217,000	$	3,135,300

The activity in the allowance for credit losses for leasing operations during 2011 and 2010, respectively, is as follows:

	December 31, 2011			December 25, 2010
Balance at beginning of period	$	907,800		$	1,339,400
Provisions charged to expense	(43,400		)	189,000
Recoveries	349,700			457,500
Deductions for amounts written-off	(410,300		)	(1,078,100		)
Balance at end of period	$	803,800		$	907,800

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:

	December 31, 2011				December 25, 2010
	Investment In Leases		Allowance for Credit Losses		Investment In Leases		Allowance for Credit Losses
Collectively evaluated for loss potential	$	30,001,100	$	803,800	$	31,530,000	$	907,800
Individually evaluated for loss potential	—		—		—		—
Total	$	30,001,100	$	803,800	$	31,530,000	$	907,800

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-accruing.  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.

	December 31, 2011
	0-60 Days Delinquent and Accruing		61-90 Days Delinquent and Accruing		Over 90 Days Delinquent and Accruing		Non-Accrual		Total
Middle-Market	$	25,650,500	$	932,100	$	—	$	—	$	26,582,600
Small-Ticket	3,351,400		48,300		—		18,800		3,418,500
Total Investment in Leases	$	29,001,900	$	980,400	$	—	$	18,800	$	30,001,100

	December 25, 2010
	0-60 Days Delinquent and Accruing		61-90 Days Delinquent and Accruing		Over 90 Days Delinquent and Accruing		Non-Accrual		Total
Middle-Market	$	23,474,400	$	—	$	—	$	—	$	23,474,400
Small-Ticket	7,832,200		138,800		—		84,600		8,055,600
Total Investment in Leases	$	31,306,600	$	138,800	$	—	$	84,600	$	31,530,000