Note 14 — Sales-Type Leases
The net investment in sales-type leases of certain medication management products as of December 31, consist of the following:
|
| | | | | | | | |
(dollars in millions) | | 2013 | | 2012 |
Minimum lease payments receivables | | $ | 32.1 |
| | $ | 44.1 |
|
Unearned interest income | | (3.3 | ) | | (5.0 | ) |
Net investment in sales-type leases | | 28.8 |
| | 39.1 |
|
Current portion(1) | | (8.9 | ) | | (11.2 | ) |
Net investment in sales-type leases, less current portion(1) | | $ | 19.9 |
| | $ | 27.9 |
|
| |
(1) | The current and long-term portions are reported in Trade receivables and Other assets, respectively. |
Future minimum amounts due under customer agreements accounted for as sales-type leases as of December 31, 2013 are as follows:
|
| | | |
(dollars in millions) | Sales-Type Leases |
2014 | $ | 10.3 |
|
2015 | 9.2 |
|
2016 | 7.9 |
|
2017 | 4.1 |
|
2018 and thereafter | 0.6 |
|
| $ | 32.1 |
|
Hospira monitors the credit quality of sales-type leases and recognizes an allowance for credit loss based on historical loss experience. As of December 31, 2013 and 2012, allowance for credit losses and amounts past due 90 days for sales-type leases were not material.
