Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2020 | Nov. 02, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | ePlus inc. | |
Entity Central Index Key | 0001022408 | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 13,507,214 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 1-34167 | |
Entity Tax Identification Number | 54-1817218 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 13595 Dulles Technology Drive | |
Entity Address, City or Town | Herndon | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 20171-3413 | |
City Area Code | 703 | |
Local Phone Number | 984-8400 | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | PLUS | |
Security Exchange Name | NASDAQ |
UNAUDITED CONSOLIDATED BALANCE
UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 161,081 | $ 86,231 |
Accounts receivable-trade, net | 369,037 | 374,998 |
Accounts receivable-other, net | 40,832 | 36,570 |
Inventories | 73,751 | 50,268 |
Financing receivables-net, current | 92,766 | 70,169 |
Deferred costs | 22,329 | 22,306 |
Other current assets | 8,233 | 9,256 |
Total current assets | 768,029 | 649,798 |
Financing receivables and operating leases-net | 87,926 | 74,158 |
Property, equipment and other assets | 34,314 | 32,596 |
Goodwill | 118,177 | 118,097 |
Other intangible assets-net | 30,265 | 34,464 |
TOTAL ASSETS | 1,038,711 | 909,113 |
Current liabilities: | ||
Accounts payable | 104,893 | 82,919 |
Accounts payable-floor plan | 218,970 | 127,416 |
Salaries and commissions payable | 30,284 | 30,952 |
Deferred revenue | 59,078 | 55,480 |
Recourse notes payable-current | 2,286 | 37,256 |
Non-recourse notes payable-current | 35,610 | 29,630 |
us-gaap_OtherLiabilitiesCurrent | 25,372 | 22,986 |
Total current liabilities | 476,493 | 386,639 |
Non-recourse notes payable-long term | 2,444 | 5,872 |
Deferred tax liability-net | 3,762 | 2,730 |
us-gaap_OtherLiabilitiesNoncurrent | 32,942 | 27,727 |
TOTAL LIABILITIES | 515,641 | 422,968 |
COMMITMENTS AND CONTINGENCIES (Note 10) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.01 per share par value; 2,000 shares authorized; none outstanding | 0 | 0 |
Common stock, $0.01 per share par value; 25,000 shares authorized; 13,537 outstanding at September 30, 2020 and 13,500 outstanding at March 31, 2020 | 145 | 144 |
Additional paid-in capital | 148,845 | 145,197 |
Treasury stock, at cost, 958 shares at September 30, 2020 and 896 shares at March 31, 2020 | (72,911) | (68,424) |
Retained earnings | 447,425 | 410,219 |
Accumulated other comprehensive income-foreign currency translation adjustment | (434) | (991) |
Total Stockholders' Equity | 523,070 | 486,145 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,038,711 | $ 909,113 |
UNAUDITED CONSOLIDATED BALANC_2
UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 2,000 | 2,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 25,000 | 25,000 |
Common stock, shares outstanding (in shares) | 13,537 | 13,500 |
Treasury stock, shares (in shares) | 958 | 896 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net sales | ||||
Total | $ 433,081 | $ 411,565 | $ 788,112 | $ 792,937 |
Cost of sales | ||||
Total | 334,119 | 308,534 | 590,593 | 597,267 |
Gross profit | 98,962 | 103,031 | 197,519 | 195,670 |
Selling, general, and administrative | 66,889 | 70,523 | 136,356 | 136,310 |
Depreciation and amortization | 3,341 | 3,557 | 6,857 | 7,020 |
Interest and financing costs | 247 | 576 | 824 | 1,204 |
Operating expenses | 70,477 | 74,656 | 144,037 | 144,534 |
Operating income | 28,485 | 28,375 | 53,482 | 51,136 |
Other income (expense) | 184 | (40) | 282 | (85) |
Earnings before tax | 28,669 | 28,335 | 53,764 | 51,051 |
Provision for income taxes | 8,823 | 8,237 | 16,558 | 14,765 |
Net earnings | $ 19,846 | $ 20,098 | $ 37,206 | $ 36,286 |
Net earnings per common share-basic (in dollars per share) | $ 1.48 | $ 1.51 | $ 2.79 | $ 2.72 |
Net earnings per common share-diluted (in dollars per share) | $ 1.48 | $ 1.51 | $ 2.78 | $ 2.71 |
Weighted average common shares outstanding-basic (in shares) | 13,372 | 13,312 | 13,347 | 13,334 |
Weighted average common shares outstanding-diluted (in shares) | 13,391 | 13,350 | 13,394 | 13,408 |
Product [Member] | ||||
Net sales | ||||
Total | $ 383,656 | $ 363,497 | $ 690,896 | $ 699,098 |
Cost of sales | ||||
Total | 302,963 | 278,863 | 529,597 | 538,926 |
Services [Member] | ||||
Net sales | ||||
Total | 49,425 | 48,068 | 97,216 | 93,839 |
Cost of sales | ||||
Total | $ 31,156 | $ 29,671 | $ 60,996 | $ 58,341 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
NET EARNINGS | $ 19,846 | $ 20,098 | $ 37,206 | $ 36,286 |
OTHER COMPREHENSIVE INCOME, NET OF TAX: | ||||
Foreign currency translation adjustments | 520 | (350) | 557 | (613) |
Other comprehensive income (loss) | 520 | (350) | 557 | (613) |
TOTAL COMPREHENSIVE INCOME | $ 20,366 | $ 19,748 | $ 37,763 | $ 35,673 |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net earnings | $ 37,206 | $ 36,286 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 9,460 | 10,077 |
Reserve for credit losses | 1,766 | 631 |
Share-based compensation expense | 3,648 | 4,054 |
Deferred taxes | 1,032 | (3) |
Payments from lessees directly to lenders-operating leases | (13) | (34) |
Gain on disposal of property, equipment, and operating lease equipment | (278) | (436) |
Changes in: | ||
Accounts receivable | 1,755 | (46,100) |
Inventories-net | (23,381) | (5,301) |
Financing receivables-net | (54,386) | (76,423) |
Deferred costs and other assets | (1,052) | (18,826) |
Accounts payable-trade | 21,717 | 15,585 |
Salaries and commissions payable, deferred revenue, and other liabilities | 10,934 | 26,086 |
Net cash provided by (used in) operating activities | 8,408 | (54,404) |
Cash flows from investing activities: | ||
Proceeds from sale of property, equipment, and operating lease equipment | 456 | 653 |
Purchases of property, equipment and operating lease equipment | (3,267) | (4,888) |
Cash used in acquisitions, net of cash acquired | 0 | (13,815) |
Net cash used in investing activities | (2,811) | (18,050) |
Cash flows from financing activities: | ||
Borrowings of non-recourse and recourse notes payable | 23,613 | 54,877 |
Repayments of non-recourse and recourse notes payable | (40,529) | (5,629) |
Repurchase of common stock | (4,487) | (13,692) |
Repayments of financing of acquisitions | (421) | (785) |
Net borrowings on floor plan facility | 91,554 | 13,585 |
Net cash provided by financing activities | 69,730 | 48,356 |
Effect of exchange rate changes on cash | (477) | 114 |
Net increase (decrease) in cash and cash equivalents | 74,850 | (23,984) |
Cash and cash equivalents, beginning of period | 86,231 | 79,816 |
Cash and cash equivalents, end of period | 161,081 | 55,832 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 739 | 1,115 |
Cash paid for income taxes | 12,348 | 12,471 |
Cash paid for amounts included in the measurement of lease liabilities | 2,975 | 2,566 |
Schedule of non-cash investing and financing activities: | ||
Purchases of property, equipment, and operating lease equipment | (393) | (396) |
Financing of acquisitions | 0 | (1,464) |
Borrowing of non-recourse and recourse notes payable | 35,780 | 82,462 |
Repayments of non-recourse and recourse notes payable | (13) | (34) |
Vesting of share-based compensation | 7,916 | 8,972 |
New operating lease assets obtained in exchange for lease obligations | $ 774 | $ 5,225 |
UNAUDITED CONSOLIDATED STATEM_4
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Balance at Mar. 31, 2019 | $ 143 | $ 137,243 | $ (53,999) | $ 341,137 | $ (271) | $ 424,253 |
Balance (in shares) at Mar. 31, 2019 | 13,611 | |||||
Issuance of restricted stock awards | $ 1 | 0 | 0 | 0 | 0 | 1 |
Issuance of restricted stock awards (in shares) | 86 | |||||
Share-based compensation | $ 0 | 1,919 | 0 | 0 | 0 | 1,919 |
Share-based compensation (in shares) | 0 | |||||
Repurchase of common stock | $ 0 | 0 | $ (13,455) | 0 | 0 | (13,455) |
Repurchase of common stock (in shares) | (188) | |||||
Net earnings | 0 | 0 | $ 0 | 16,188 | 0 | 16,188 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (263) | (263) |
Balance at Jun. 30, 2019 | $ 144 | 139,162 | (67,454) | 357,325 | (534) | 428,643 |
Balance (in shares) at Jun. 30, 2019 | 13,509 | |||||
Balance at Mar. 31, 2019 | $ 143 | 137,243 | (53,999) | 341,137 | (271) | 424,253 |
Balance (in shares) at Mar. 31, 2019 | 13,611 | |||||
Net earnings | 36,286 | |||||
Balance at Sep. 30, 2019 | $ 144 | 141,297 | (67,691) | 377,423 | (884) | 450,289 |
Balance (in shares) at Sep. 30, 2019 | 13,513 | |||||
Balance at Jun. 30, 2019 | $ 144 | 139,162 | (67,454) | 357,325 | (534) | 428,643 |
Balance (in shares) at Jun. 30, 2019 | 13,509 | |||||
Issuance of restricted stock awards | $ 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of restricted stock awards (in shares) | 7 | |||||
Share-based compensation | $ 0 | 2,135 | 0 | 0 | 0 | 2,135 |
Share-based compensation (in shares) | (3) | |||||
Repurchase of common stock | $ 0 | 0 | $ (237) | 0 | 0 | (237) |
Repurchase of common stock (in shares) | 0 | |||||
Net earnings | 0 | 0 | $ 0 | 20,098 | 0 | 20,098 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (350) | (350) |
Balance at Sep. 30, 2019 | $ 144 | 141,297 | (67,691) | 377,423 | (884) | 450,289 |
Balance (in shares) at Sep. 30, 2019 | 13,513 | |||||
Balance at Mar. 31, 2020 | $ 144 | 145,197 | (68,424) | 410,219 | (991) | $ 486,145 |
Balance (in shares) at Mar. 31, 2020 | 13,500 | 13,500 | ||||
Issuance of restricted stock awards | $ 1 | 0 | 0 | 0 | 0 | $ 1 |
Issuance of restricted stock awards (in shares) | 91 | |||||
Share-based compensation | $ 0 | 1,885 | 0 | 0 | 0 | 1,885 |
Share-based compensation (in shares) | 0 | |||||
Repurchase of common stock | $ 0 | 0 | $ (2,703) | 0 | 0 | (2,703) |
Repurchase of common stock (in shares) | (38) | |||||
Net earnings | 0 | 0 | $ 0 | 17,360 | 0 | 17,360 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 37 | 37 |
Balance at Jun. 30, 2020 | $ 145 | 147,082 | (71,127) | 427,579 | (954) | 502,725 |
Balance (in shares) at Jun. 30, 2020 | 13,553 | |||||
Balance at Mar. 31, 2020 | $ 144 | 145,197 | (68,424) | 410,219 | (991) | $ 486,145 |
Balance (in shares) at Mar. 31, 2020 | 13,500 | 13,500 | ||||
Net earnings | $ 37,206 | |||||
Balance at Sep. 30, 2020 | $ 145 | 148,845 | (72,911) | 447,425 | (434) | $ 523,070 |
Balance (in shares) at Sep. 30, 2020 | 13,537 | 13,537 | ||||
Balance at Jun. 30, 2020 | $ 145 | 147,082 | (71,127) | 427,579 | (954) | $ 502,725 |
Balance (in shares) at Jun. 30, 2020 | 13,553 | |||||
Issuance of restricted stock awards | $ 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of restricted stock awards (in shares) | 8 | |||||
Share-based compensation | $ 0 | 1,763 | 0 | 0 | 0 | 1,763 |
Share-based compensation (in shares) | 0 | |||||
Repurchase of common stock | $ 0 | 0 | $ (1,784) | 0 | 0 | (1,784) |
Repurchase of common stock (in shares) | (24) | |||||
Net earnings | 0 | 0 | $ 0 | 19,846 | 0 | 19,846 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 520 | 520 |
Balance at Sep. 30, 2020 | $ 145 | $ 148,845 | $ (72,911) | $ 447,425 | $ (434) | $ 523,070 |
Balance (in shares) at Sep. 30, 2020 | 13,537 | 13,537 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Sep. 30, 2020 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF BUSINESS — Our e e e the United Kingdom (“UK”), and other European countries. BASIS OF PRESENTATION — The e acquisition. INTERIM FINANCIAL STATEMENTS — The unaudited consolidated financial statements for the six months ended September 30, 2020, and 2019, were prepared by us and include all normal and recurring adjustments that, in the opinion of management, are necessary for a fair presentation of our financial position, results of operations, changes in comprehensive income, and cash flows for such periods. Operating results for the six months ended September 30, 2020, and 2019 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending March 31, 2021, or any other future period. These unaudited consolidated financial statements do not include all disclosures required by the accounting principles generally accepted in the United States (“US GAAP”) for annual financial statements. Our audited consolidated financial statements are contained in our annual report on Form 10-K for the year ended March 31, 2020 (“2020 Annual Report”), which should be read in conjunction with these interim consolidated financial statements. USE OF ESTIMATES — The estimates. CONCENTRATIONS OF RISK — A substantial portion of our sales are products from Cisco Systems, which were 41% and 43% of our technology segment’s net sales for the three months ended September 30, 2020, and 2019, respectively, and 40% and 42% of our technology segment’s net sales for the six months ended September 30, 2020, and 2019, respectively. SIGNIFICANT ACCOUNTING POLICIES — The significant accounting policies used in preparing these Consolidated Financial Statements were applied on a basis consistent with those reflected in our Consolidated Financial Statements for the year ended March except for changes from the adoption of Financial Accounting Standards Board (“FASB”) Accounting Standards Update ("ASU") - Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU - ”). to our accounting policies from adopting ASU - are provided below. ALLOWANCE FOR CREDIT LOSSES — We maintain an allowance for credit losses related to our accounts receivable and financing receivables. We record an expense in the amount necessary to adjust the allowance for credit losses to our current estimate of expected credit losses on financial assets. We estimate expected credit losses based on our internal rating of the customer’s credit quality, our historical credit losses, current economic conditions, and other relevant factors. Prior to providing credit, we assign an internal rating for each customer’s credit quality based on the customer’s financial status, rating agency reports and other financial information. We review our internal ratings for each customer at least annually or when there is an indicator of a change in credit quality, such as a delinquency or bankruptcy. We charge off uncollectable financing receivables when we stop pursuing collection. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Sep. 30, 2020 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENT ACCOUNTING PRONOUNCEMENTS CREDIT LOSSES — Note 7 |
REVENUES
REVENUES | 6 Months Ended |
Sep. 30, 2020 | |
REVENUES [Abstract] | |
REVENUES | 3. REVENUES Contract balances Accounts receivable – trade consists entirely of amounts due from contracts with customers. In addition, we had $ million and $ million of receivables from contracts with customers included within financing receivables as of September and March respectively. The following table provides the balance of contract liabilities from contracts with customers (in s): Contract liabilities September 30, 2020 March 31, 2020 Current (included in deferred revenue) $ 58,267 $ 54,486 Non-current (included in other liabilities) $ 18,794 $ 16,395 Revenue recognized from the beginning contract liability balance was $11.3 million and $26.9 million for the three and six months ended September 30, 2020, respectively, and $13.6 million and $29.4 million for the three and six months ended September 30, 2019, respectively. Performance obligations The following table includes revenue expected to be recognized in the future related to performance obligations, primarily non-cancelable contracts for e Plus managed services, that are unsatisfied or partially unsatisfied at the end of the reporting period, (in s). Remainder of Year ending March 31, 2021 $ 20,527 Year Ending March 31, 2022 18,889 Year Ending March 31, 2023 8,385 Year Ending March 31, 2024 2,026 Year Ending March 31, 2025 516 Year Ending March 31, 2026 and thereafter 111 Total remaining performance obligations $ 50,454 The table does not include the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts where we recognize revenue at the amount that we have the right to invoice for services performed. |
FINANCING RECEIVABLES AND OPERA
FINANCING RECEIVABLES AND OPERATING LEASES | 6 Months Ended |
Sep. 30, 2020 | |
FINANCING RECEIVABLES AND OPERATING LEASES [Abstract] | |
FINANCING RECEIVABLES AND OPERATING LEASES | 4. FINANCING RECEIVABLES AND OPERATING LEASES O ur financing receivables and operating leases consist primarily of leases of IT and communication equipment and notes receivable from financing customer purchases of -party software, maintenance, and services. Our leases often include elections for the lessee to purchase the underlying asset at the end of the lease term. Occasionally, our leases provide the lessee a bargain purchase option . The following table provides the profit recognized for sales-type leases at their commencement date, including modifications that are recognized on a net basis, for the three and six months ended September 30, 2020, and 2019 (in thousands): Three months ended September 30, 2020 Three months ended September 30, 2019 Six months ended September 30, 2020 Six months ended September 30, 2019 Net sales $ 7,655 $ 3,133 $ 17,818 $ 7,987 Cost of sales 5,402 2,702 10,729 6,652 Gross profit $ 2,253 $ 431 $ 7,089 $ 1,335 The following table provides interest income in aggregate on our sales-type leases and lease income on our operating leases for the three and six months ended September 30, 2020, and 2019 (in thousands): Three months ended September 30 2020 Three months ended September 30, 2019 Six months ended September 30, 2020 Six months ended September 30, 2019 Interest income on sales-type leases $ 1,884 $ 1,495 $ 4,103 $ 3,590 Lease income on operating leases $ 3,900 $ 5,059 $ 7,738 $ 10,418 FINANCING RECEIVABLES—NET The following tables provide a disaggregation of our financing receivables – net (in s): September 30, 2020 Notes Receivable Lease Receivables Financing Receivables Gross receivables $ 90,002 $ 76,700 $ 166,702 Unguaranteed residual value (1) - 20,213 20,213 Initial direct costs, net of amortization 364 - 364 Unearned income - (11,329 ) (11,329 ) Reserve for credit losses (2) (1,337 ) (1,227 ) (2,564 ) Total, net $ 89,029 $ 84,357 $ 173,386 Reported as: Current $ 52,397 $ 40,369 $ 92,766 Long-term 36,632 43,988 80,620 Total, net $ 89,029 $ 84,357 $ 173,386 (1) Includes unguaranteed residual values of $12,644 thousand that we retained after selling the related lease receivable. (2) Refer to Note 7 , “Allowance for Credit Losses” for details. March 31, 2020 Notes Receivable Lease Receivables Financing Receivables Minimum payments $ 55,417 $ 69,492 $ 124,909 Estimated unguaranteed residual value (1) - 21,862 21,862 Initial direct costs, net of amortization 212 247 459 Unearned income - (11,612 ) (11,612 ) Reserve for credit losses (2) (798 ) (610 ) (1,408 ) Total, net $ 54,831 $ 79,379 $ 134,210 Reported as: Current $ 31,181 $ 38,988 $ 70,169 Long-term 23,650 40,391 64,041 Total, net $ 54,831 $ 79,379 $ 134,210 (1) Includes unguaranteed residual values of for sales type leases, which have been sold and accounted for as sales. (2) Refer to Note 7 “Allowance for Credit Losses” for details. The following table provides the future scheduled minimum lease payments for investments in sales-type leases as of September (in s): Remainder of the Year ending March 31, 2021 $ 46,006 Year Ending March 31, 2022 19,376 Year Ending March 31, 2023 8,196 Year Ending March 31, 2024 2,205 Year Ending March 31, 2025 and thereafter 917 Total $ 76,700 OPERATING LEASES—NET Operating leases—net represents leases that do not qualify as sales-type leases. The components of the operating leases—net are as follows (in thousands): September 30, 2020 March 31, 2020 Cost of equipment under operating leases $ 19,578 $ 21,276 Accumulated depreciation (12,272 ) (11,159 ) Investment in operating lease equipment—net (1) $ 7,306 $ 10,117 (1) Amounts include estimated unguaranteed residual values of $2.5 million and $3.1 million as of September 30, 2020, and March 31, 2020, respectively. The following table provides the future scheduled minimum lease rental payments for operating leases as of September (in s): Remainder of the Year ending March 31, 2021 $ 1,534 Year Ending March 31, 2022 1,927 Year Ending March 31, 2023 1,436 Year Ending March 31, 2024 477 Year Ending March 31, 2025 and thereafter 35 Total $ 5,409 TRANSFERS OF FINANCIAL ASSETS We enter into arrangements to transfer the contractual payments due under financing receivables and operating lease agreements, which are accounted for as sales or secured borrowings. For transfers accounted for as a secured borrowing, the corresponding investments serve as collateral for non-recourse notes payable. As of September 30, 2020, and March 31, 2020, we had financing receivables of $ million and $ million, respectively, and operating leases of $ million and $ million, respectively, which were collateral for non-recourse notes payable. See Note 9 , “Notes Payable and Credit Facility.” For transfers accounted for as sales, we derecognize the carrying value of the asset transferred plus any liability and recognize a net gain or loss on the sale, which are presented within net sales in the consolidated statement of operations. During the three months ended September 30, 2020, and 2019, we recognized net gains of $4.5 million and $4.1 million, respectively, and total proceeds from these sales were $118.5 million and $95.1 million, respectively. For the year to date periods ended September 30, 2020, and 2019, we recognized net gains of $7.0 million and $7.5 million, respectively, and total proceeds from these sales were $191.7 million and $172.0 million, respectively. When we retain servicing obligations in transfers accounted for as sales, we allocate a portion of the proceeds to deferred revenues, which is recognized as we perform the services. As of both September 30, 2020, and March 31, 2020, we had deferred revenue of $0.4 million for servicing obligations. In a limited number of transfers accounted for as sales, we indemnified the assignee in the event that the lessee elected to early terminate the lease. As of September 30, 2020, our maximum potential future payments related to such guarantees is immaterial. We believe the likelihood of making any such payments to be remote. |
LESSEE ACCOUNTING
LESSEE ACCOUNTING | 6 Months Ended |
Sep. 30, 2020 | |
LESSEE ACCOUNTING [Abstract] | |
LESSEE ACCOUNTING | 5. LESSEE ACCOUNTING We lease office space for periods up to 6 years. We recognize our right-of-use assets as part of property, equipment and other assets. We recognize the current and long-term portions of our lease liability as part of other current liabilities and other liabilities, respectively. We recognized rent expense of $1.5 million as part of selling, general, and administrative expenses for both the three months ended September 30, 2020, and September 30, 2019, and $3.1 million for both the six months ending September 30, 2020, and September 30, 2019. The following table provides supplemental information about the remaining lease terms and discount rates applied as of September and March : Lease term and Discount Rate September 30, 2020 March 31, 2020 Weighted average remaining lease term (months) 34 38 Weighted average discount rate 3.8 % 3.9 % The following table provides our future lease payments under our operating leases as of September (in s): September 30, 2020 Remainder of the year ending March 31, 2021 $ 2,432 Year ending March 31, 2022 4,319 Year ending March 31, 2023 3,093 Year ending March 31, 2024 1,249 Year ending March 31, 2025 and thereafter 813 Total lease payments $ 11,906 Less: interest (617 ) Present value of lease liabilities $ 11,289 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Sep. 30, 2020 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 6. GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL The carrying value of goodwill was $118.2 and $118.1 million as of September 30, 2020, and March 31, 2020, respectively. There was no significant activity in the balance during the six months ended September 30, 2020, other than change in foreign currency translation of $0.1 million. Goodwill represents the premium paid over the fair value of the net tangible and intangible assets that are individually identified and separately recognized in business combinations. Our entire balance as of September 30, 2020, and March 31, 2020, relates to our technology reportable segment, which we also determined to be one reporting unit. We test goodwill for impairment on an annual basis, as of the first day of our third fiscal quarter, and between annual tests if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying value. In our annual test as of October 1, 2019, we performed a qualitative assessment of goodwill and concluded that, more likely than not, the fair value of our technology reporting unit continued to substantially exceed its carrying value. During the fourth quarter of fiscal year 2020, we determined that the uncertainty associated with the economic environment stemming from the COVID-19 pandemic was a triggering event and we elected to perform a quantitative goodwill impairment test. We concluded that the fair value of our technology reporting unit substantially exceeded its carrying value as of March 31, 2020. Our conclusions would not be impacted by a ten percent change in our estimate of the fair value of the reporting unit. OTHER INTANGIBLE ASSETS Our other intangible assets consist of the following on September 30, 2020, and March 31, 2020 (in thousands): September 30, 2020 March 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships & other intangibles $ 63,093 $ (37,467 ) $ 25,626 $ 63,006 $ (33,000 ) $ 30,006 Capitalized software development 11,176 (6,537 ) 4,639 10,385 (5,927 ) 4,458 Total $ 74,269 $ (44,004 ) $ 30,265 $ 73,391 $ (38,927 ) $ 34,464 Customer relationships and other intangibles are generally amortized between to years. Capitalized generally amortized over Total amortization expense for other intangible assets was $2.5 million for both the three months ended September 30, 2020, and 2019, respectively, and $5.0 million and $4.9 million for the six months ended September 30, 2020, and 2019, respectively. |
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES | 6 Months Ended |
Sep. 30, 2020 | |
ALLOWANCE FOR CREDIT LOSSES [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES | 7. ALLOWANCE FOR CREDIT LOSSES The following table provides the activity in our allowance for credit losses for the six months ended September 30, 2020, and 2019 (in thousands): Accounts Receivable Notes Receivable Lease Receivables Total Balance April 1, 2020 $ 1,781 $ 798 $ 610 $ 3,189 Provision for credit losses 576 566 624 1,766 Write-offs and other (27 ) (27 ) (7 ) (61 ) Balance September 30, 2020 $ 2,330 $ 1,337 $ 1,227 $ 4,894 Accounts Receivable Notes Receivable Lease Receivables Total Balance April 1, 2019 $ 1,579 $ 505 $ 530 $ 2,614 Provision for credit losses 311 15 (27 ) 299 Write-offs and other (42 ) - (3 ) (45 ) Balance September 30, 2019 $ 1,848 $ 520 $ 500 $ 2,868 The following table provides our allowance for credit losses and minimum payments associated with our notes receivables and lease-related receivables disaggregated based on our impairment method as of March 31, 2020 (in thousands): March 31, 2020 Notes Receivable Lease Receivables Allowance for credit losses: Ending balance: collectively evaluated for impairment $ 736 $ 610 Ending balance: individually evaluated for impairment 62 - Ending balance $ 798 $ 610 Minimum payments: Ending balance: collectively evaluated for impairment $ 55,005 $ 69,492 Ending balance: individually evaluated for impairment 412 - Ending balance $ 55,417 $ 69,492 We evaluate our customers using an internally assigned credit quality rating (“CQR”): • High CQR: This rating includes accounts with excellent to good business credit, asset quality and capacity to meet financial obligations. Loss rates in this category are generally less than . • Average CQR: This rating includes accounts with average credit risk that are more susceptible to loss in the event of adverse business or economic conditions. Loss rates in this category are generally in the range of to . • Low CQR: This rating includes accounts that have marginal credit risk such that the customer’s ability to make repayment is impaired or may likely become impaired. The loss rates in this category in the normal course are generally in the range of to . The following table provides the amortized cost basis of our financing receivables by CQR and by credit origination year as of September 30, 2020 (in thousands): Amortized cost basis by origination year ending March 31, 2021 2020 2019 2018 2017 2016 and prior Total Transfers (2) Net credit exposure Notes receivable: High CQR $ 64,678 $ 9,744 $ 2,434 $ 947 $ 38 $ - $ 77,841 $ (35,867 ) $ 41,974 Average CQR 6,189 4,697 837 52 - - 11,775 (3,651 ) 8,124 Low CQR - - 324 - - 62 386 - 386 Total $ 70,867 $ 14,441 $ 3,595 $ 999 $ 38 $ 62 $ 90,002 $ (39,518 ) $ 50,484 Lease receivables: High CQR $ 21,650 $ 11,826 $ 3,609 $ 998 $ 314 $ 8 $ 38,405 $ (9,518 ) $ 28,887 Average CQR 22,447 9,415 1,921 646 106 - 34,535 (11,409 ) 23,126 Low CQR - - - - - - - - - Total $ 44,097 $ 21,241 $ 5,530 $ 1,644 $ 420 $ 8 $ 72,940 $ (20,927 ) $ 52,013 Total amortized cost (1) $ 114,964 $ 35,682 $ 9,125 $ 2,643 $ 458 $ 70 $ 162,942 $ (60,445 ) $ 102,497 (1) Unguaranteed residual values of $ thousand that we retained after selling the related lease receivable and initial direct costs of notes receivable of $ thousand are excluded from amortized cost. (2) Transfers consist of receivables that have been transferred to third-party financial institutions on a non-recourse basis and receivables that are in the process of being transferred to third-party financial institutions. The following table provides an aging analysis of our financing receivables as of , (in thousands): 31-60 Days Past Due 61-90 Days Past Due > 90 Days Past Due Total Past Due Current Total Billed Unbilled Amortized Cost Notes receivable $ 925 $ 270 $ 823 $ 2,018 $ 10,105 $ 12,123 $ 77,879 $ 90,002 Lease receivables 660 2,049 1,771 4,480 1,754 6,234 66,706 72,940 Total $ 1,585 $ 2,319 $ 2,594 $ 6,498 $ 11,859 $ 18,357 $ 144,585 $ 162,942 The following table provides an aging analysis of our lease receivables by CQR as of March 31, (in thousands): 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Current Unbilled Minimum Lease Payments Total Minimum Lease Payments Unearned Income Non- Recourse Notes Payable Net Credit Exposure High CQR $ 951 $ 105 $ 922 $ 1,978 $ 1,181 $ 33,581 $ 36,740 $ (4,766 ) $ (19,823 ) $ 12,151 Average CQR 46 107 112 265 1,106 31,381 32,752 (3,646 ) (18,693 ) 10,413 Low CQR - - - - - - - - - - Total $ 997 $ 212 $ 1,034 $ 2,243 $ 2,287 $ 64,962 $ 69,492 $ (8,412 ) $ (38,516 ) $ 22,564 The following table provides an aging analysis of our notes receivable by CQR as of March 31, (in thousands): 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Current Unbilled Notes Receivable Total Notes Receivable Non- Recourse Notes Payable Net Credit Exposure High CQR $ 1,332 $ 2 $ 280 $ 1,614 $ 2,878 $ 29,057 $ 33,549 $ (18,341 ) $ 15,208 Average CQR 140 44 142 326 1,135 19,995 21,456 (16,636 ) 4,820 Low CQR 63 - 152 215 - 197 412 - 412 Total $ 1,535 $ 46 $ 574 $ 2,155 $ 4,013 $ 49,249 $ 55,417 $ (34,977 ) $ 20,440 Our financial assets on nonaccrual status were not significant as of September 30, 2020, and March 31, 2020. |
PROPERTY, EQUIPMENT, OTHER ASSE
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES | 6 Months Ended |
Sep. 30, 2020 | |
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES [Abstract] | |
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES | 8. PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES Our property, equipment, other assets and liabilities consist of the following (in thousands): September 30, 2020 March 31, 2020 Other current assets: Deposits & funds held in escrow $ 339 $ 926 Prepaid assets 7,640 7,946 Other 254 384 Total $ 8,233 $ 9,256 Property, equipment and other assets Property and equipment, net $ 7,258 $ 7,153 Deferred costs - non-current 12,568 10,957 Right-of-use assets 11,069 13,066 Other 3,419 1,420 Total $ 34,314 $ 32,596 Other current liabilities : Accrued expenses $ 10,639 $ 10,024 Accrued income taxes payable 3,021 406 Contingent consideration - current - 220 Short-term lease liability 4,698 4,815 Other 7,014 7,521 Total $ 25,372 $ 22,986 Other liabilities : Deferred revenue $ 19,074 $ 16,693 Long-term lease liability 6,590 8,326 Other 7,278 2,708 Total $ 32,942 $ 27,727 In the above table, deposits and funds held in escrow relate to financial assets that were sold to third-party banks. In conjunction with those sales, a portion of the proceeds was placed in escrow and will be released to us upon payment of outstanding invoices related to the underlying financing arrangements that were sold. |
CREDIT FACILITY AND NOTES PAYAB
CREDIT FACILITY AND NOTES PAYABLE | 6 Months Ended |
Sep. 30, 2020 | |
CREDIT FACILITY AND NOTES PAYABLE [Abstract] | |
CREDIT FACILITY AND NOTES PAYABLE | 9. CREDIT FACILITY AND NOTES PAYABLE Credit Facility Within our technology segment, e Under the floor plan component, we had outstanding balances of $219.0 million and $127.4 million as of September 30, 2020 and March 31, 2020 respectively, and are presented as accounts payable – floorplan. The fair value of the outstanding balance under the credit facility was equal to its carrying value as of September 30, 2020 and March 31, 2020 On May 15, 2020, we executed an amendment to the WFCDF credit facility that increased the aggregate limit of the two components, except during a temporary uplift, to $275.0 million. Additionally, we have an election to temporarily increase the aggregate limit to $350.0 million for a period of not less than 30 days, provided that all such periods shall not exceed 150 days in the aggregate in any calendar year. Further, the amendment increased the limit on the accounts receivable component of the WFCDF credit facility to $100.0 million, changed the interest rate to two percent (2.00%) plus the greater of one month LIBOR or seventy-five hundredths of one percent (0.75%), and modified certain restrictions on e e As of September 30, 2020, the limit of the two components of the credit facility was $275 million, and the accounts receivable component had a sub-limit of $100 million. Under the accounts receivable component, we had outstanding balance as of September 30, 2020 and outstanding as of March 31, 2020 The accounts receivable component is presented as recourse notes payable – current. The WFCDF credit facility is secured by the assets of e e The credit facility restricts the ability of e e e The credit facility requires that financial statements of e The loss of the WFCDF credit facility, including during circumstances related to COVID-19, could have a material adverse effect on our future results as we currently rely on this facility and its components for daily working capital and liquidity for our technology segment and as an operational function of our accounts payable process. On October 1, 2020, we elected to exercise the temporary increase in the aggregate limit of the WFCDF credit facility to $350.0 million for a period of 30 days. Recourse Notes Payable Recourse notes payable consist of borrowings that, in the event of default, the lender has recourse against us in addition to the assets serving as collateral. As of September 30, 2020, and March 31, 2020, we had $2.3 million of recourse borrowings that were collateralized by investments in notes receivable and leases. Our principal and interest payments are generally due monthly in amounts that equal to the total payments due from the customer under the leases or notes receivable that collateralize the notes payable. The weighted average interest rate for these borrowings was 2.55% as of both September 30, 2020, and March 31, 2020. Non-recourse Notes Payable Non-recourse notes payable consists of borrowings that, in the event of a default by a customer, the lender generally only has recourse against the customer, and the assets serving as collateral, but not against us. As of September 30, 2020, and March 31, 2020, we had $38.1 million and $35.5 million, respectively, of non-recourse borrowings that were collateralized by investments in notes and leases. Principal and interest payments are generally due monthly in amounts that are approximately equal to the total payments due from the customer under the leases or notes receivable that collateralize the notes payable. The weighted average interest rate for our non-recourse notes payable was 3.15% and 3.84%, as of September 30, 2020, and March 31, 2020, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Sep. 30, 2020 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company may be involved in routine legal proceedings, as well as demands, claims and threatened litigation that arise in the normal course of our business. The ultimate amount of liability, if any, for any claims of any type (either alone or in the aggregate) may materially and adversely affect the Company’s financial condition, results of operations and liquidity. In addition, the ultimate outcome of any litigation is uncertain. Any outcome, whether favorable or unfavorable, may materially and adversely affect the Company due to legal costs and expenses, diversion of management attention and other factors. The Company expenses legal costs in the period incurred. The Company cannot assure that additional contingencies of a legal nature or contingencies having legal aspects will not be asserted against the Company in the future, and these matters could relate to prior, current or future transactions or events. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Sep. 30, 2020 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 11. EARNINGS PER SHARE Basic earnings per share is calculated by dividing net earnings available to common shareholders by the basic weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated by dividing net earnings available to common shareholders by the basic weighted average number of shares of common stock outstanding plus common stock equivalents during each period. The following table provides a reconciliation of the numerators and denominators used to calculate basic and diluted net income per common share as disclosed on our unaudited consolidated statements of operations for the three and six months ended September 30, 2020, and 2019, respectively (in thousands, except per share data). Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Net earnings attributable to common shareholders - basic and diluted $ 19,846 $ 20,098 $ 37,206 $ 36,286 Basic and diluted common shares outstanding: Weighted average common shares outstanding — basic 13,372 13,312 13,347 13,334 Effect of dilutive shares 19 38 47 74 Weighted average shares common outstanding — diluted 13,391 13,350 13,394 13,408 Earnings per common share - basic $ 1.48 $ 1.51 $ 2.79 $ 2.72 Earnings per common share - diluted $ 1.48 $ 1.51 $ 2.78 $ 2.71 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Sep. 30, 2020 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY | 12. STOCKHOLDERS’ EQUITY Share Repurchase Plan On May 24, 2019, our board of directors authorized the repurchase of up to 500,000 shares of our outstanding common stock over a 12-month period beginning on May 28, 2019, and ending on May 27, 2020. The plan authorized purchases to be made from time to time in the open market, or in privately negotiated transactions, subject to availability. Any repurchased shares will have the status of treasury shares and may be used, when needed, for general corporate purposes. On May 20, 2020, our board of directors authorized the repurchase of up to 500,000 shares of our outstanding common stock over a 12-month period beginning on May 28, 2020, and ending on May 27, 2021. The plan authorized purchases to be made from time to time in the open market, or in privately negotiated transactions, subject to availability. Any repurchased shares will have the status of treasury shares and may be used, when needed, for general corporate purposes. During the six months ended September 30, 2020, we purchased 24,318 shares of our outstanding common stock at a value of $1.8 million under the share repurchase plan; we also purchased 37,640 shares of common stock at a value of $2.7 million to satisfy tax withholding obligations relating to the vesting of employees’ restricted stock. During the six months ended September 30, 2019, we purchased 149,044 shares of our outstanding common stock at a value of $10.7 million under the share repurchase plan; we also purchased 41,817 shares of common stock at a value of $3.0 million to satisfy tax withholding obligations relating to the vesting of employees’ restricted stock. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Sep. 30, 2020 | |
SHARE-BASED COMPENSATION [Abstract] | |
SHARE-BASED COMPENSATION | 13. SHARE-BASED COMPENSATION Share-Based Plans As of September 30, 2020, we had share-based awards outstanding under the following Restricted Stock Activity For the six months ended September 30, 2020, we granted 9,309 restricted shares under the 2017 Director LTIP, and 89,873 restricted shares under the 2012 Employee LTIP. For the six months ended September 30, 2019, we granted 8,132 restricted shares under the 2017 Director LTIP, and 85,132 restricted shares under the 2012 Employee LTIP. A summary of the restricted shares is as follows: Number of Shares Weighted Average Grant- date Fair Value Nonvested April 1, 2020 193,580 $ 73.74 Granted 99,182 $ 71.81 Vested (110,155 ) $ 70.00 Forfeited - $ - Nonvested September 30, 2020 182,607 $ 74.95 Upon each vesting period of the restricted stock awards, employees are subject to minimum tax withholding obligations. Under the 2012 Employee LTIP, we may purchase a sufficient number of shares due to the participant to satisfy their minimum tax withholding on employee stock awards. For the six months ended September 30, 2020, the Company withheld 37,640 shares of common stock at a value of $2.7 million, which was included in treasury stock. Compensation Expense We recognize compensation cost for awards of restricted stock with graded vesting on a straight-line basis over the requisite service period. There are no additional conditions for vesting other than service conditions. During the three months ended September 30, 2020, and 2019, we recognized $1.8 million and $2.1 million of total share-based compensation expense, respectively. During the six months ended September 30, 2020, and 2019, we recognized $3.6 million and $4.1 million of total share-based compensation expense, respectively. Unrecognized compensation expense related to non-vested restricted stock was $11.6 million as of September 30, 2020, which will be fully recognized over the next 33 months. We also provide our employees with a contributory 401(k) profit sharing plan, to which we may contribute from time to time at our sole discretion. Employer contributions to the plan are fully vested at all times. Our estimated contribution expense for the plan for both the three months ended September 30, 2020, and 2019, was $0.7 million, and $1.4 million for both the six months ended September 30, 2020, and 2019. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Sep. 30, 2020 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 14. INCOME TAXES We account for our tax positions in accordance with Codification Topic 740, Income Taxes Our total gross unrecognized tax benefits recorded for uncertain income tax, and interest and penalties thereon, were negligible as of September 30, 2020, and September 30, 2019. We had no additions or reductions to our gross unrecognized tax benefits during the six months ended September 30, 2020. We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Sep. 30, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 15. FAIR VALUE OF FINANCIAL INSTRUMENTS We account for the fair values of our assets and liabilities in accordance with Codification Topic 820, Fair Value Measurement and Disclosure. Fair Value Measurement Using Recorded Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30 , 2020 Assets: Money market funds $ 45,132 $ 45,132 $ - $ - March 31 , 2020 Assets: Money market funds $ 128 $ 128 $ - $ - Liabilities: Contingent consideration $ 220 $ - $ - $ 220 For the three and six months ended September 30, 2020, we did not record significant adjustments to our liability for contingent consideration arising from a past business combination. In August 2020, we paid $219 thousand to fully satisfy the obligations of our contingent consideration arrangement. For the three and six months ended September 30, 2019, we recorded adjustments to operating expenses of $1.1 million and $1.5 million, respectively, that increased our liability for contingent consideration arising from our past business combinations. In September 2019, we reached a settlement in full of one of our contingent consideration arrangements in the amount of $9.6 million, that was paid in October 2019. Additionally, in September 2019, we paid $0.5 million to satisfy certain current obligations in another of these arrangements. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Sep. 30, 2020 | |
BUSINESS COMBINATIONS [Abstract] | |
BUSINESS COMBINATIONS | 16. BUSINESS COMBINATIONS ABS Technology On August 23, 2019, our subsidiary, e Plus Technology, inc., acquired certain assets and liabilities of ABS Technology, a Virginia Beach, Virginia- headquartered solutions provider with deep expertise in managed services, networking, collaboration, and security solutions. ABS Technology enhances e Plus’ existing solutions portfolio and market position in Richmond and southern Virginia. Our sum of consideration transferred was $ million consisting of $ million paid in cash at closing plus $ million that was paid primarily during the year ended March 31, 2020, upon the collection of certain accounts receivable and less $ million that was repaid to us in December 2019 due to a working capital adjustment. Our allocation of the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands): Acquisition Date Amount Accounts receivable 9,208 Other assets 743 Identified intangible assets 5,720 Accounts payable and other current liabilities (6,715 ) Performance obligation (1,140 ) Total identifiable net assets 7,816 Goodwill 7,461 Total purchase consideration $ 15,277 The identified intangible assets of $5.7 million consist of customer relationships with an estimated useful life of seven (7) years. The fair value of acquired receivables equals the gross contractual amounts receivable. We expect to collect all acquired receivables. We recognized goodwill related to this transaction of $7.5 million, which was assigned to our technology reporting unit. The goodwill recognized in the acquisition is attributable to the acquired assembled workforce and expected synergies, none of which qualify for recognition as a separate intangible asset. The total amount of goodwill is expected to be deductible for tax purposes. The amount of revenues and earnings of the acquiree since the acquisition date are not material. Likewise, the impact to the revenue and earnings of the combined entity for the current reporting period as though the acquisition date had been April 1, 2019, is not material. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Sep. 30, 2020 | |
SEGMENT REPORTING [Abstract] | |
SEGMENT REPORTING | 17. SEGMENT REPORTING Our operations are conducted through two operating segments that are also both reportable segments. Our technology segment includes sales of IT products, third-party software, third-party maintenance, advanced professional and managed services, and our proprietary software to commercial enterprises, state and local governments, and government contractors. Our financing segment consists of the financing of IT equipment, software, and related services to commercial enterprises, state and local governments, and government contractors. We measure the performance of the segments based on operating income. Our reportable segment information for the three- and six-month periods ended September 30, 2020, and 2019 are summarized in the following tables (in thousands): Three Months Ended September 30, 2020 September 30, 2019 Technology Financing Total Technology Financing Total Sales Product $ 369,934 $ 13,722 $ 383,656 $ 349,650 $ 13,847 $ 363,497 Service 49,425 - 49,425 48,068 - 48,068 Net sales 419,359 13,722 433,081 397,718 13,847 411,565 Cost of Sales Product 301,006 1,957 302,963 276,475 2,388 278,863 Service 31,156 - 31,156 29,671 - 29,671 Total cost of sales 332,162 1,957 334,119 306,146 2,388 308,534 Gross Profit 87,197 11,765 98,962 91,572 11,459 103,031 Selling, general, and administrative 62,586 4,303 66,889 67,189 3,334 70,523 Depreciation and amortization 3,313 28 3,341 3,529 28 3,557 Interest and financing costs 1 246 247 - 576 576 Operating expenses 65,900 4,577 70,477 70,718 3,938 74,656 Operating income 21,297 7,188 28,485 20,854 7,521 28,375 Other income 184 (40 ) Earnings before tax $ 28,669 $ 28,335 Net Sales Contracts with customers $ 412,357 $ 1,028 $ 413,385 $ 394,585 $ 1,411 $ 395,996 Financing and other 7,002 12,694 19,696 3,133 12,436 15,569 Net Sales $ 419,359 $ 13,722 $ 433,081 $ 397,718 $ 13,847 $ 411,565 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 3,499 $ 1,182 $ 4,681 $ 3,658 $ 1,455 $ 5,113 Purchases of property, equipment and operating lease equipment $ 990 $ - $ 990 $ 1,426 $ 1,944 $ 3,370 Selected Financial Data - Balance Sheet Total assets $ 812,633 $ 226,078 $ 1,038,711 $ 690,648 $ 223,618 $ 914,266 Six Months Ended September 30, 2020 September 30, 2019 Technology Financing Total Technology Financing Total Sales Product $ 663,367 $ 27,529 $ 690,896 $ 672,414 $ 26,684 $ 699,098 Service 97,216 - 97,216 93,839 - 93,839 Net sales 760,583 27,529 788,112 766,253 26,684 792,937 Cost of Sales Product 525,549 4,048 529,597 534,529 4,397 538,926 Service 60,996 - 60,996 58,341 - 58,341 Total cost of sales 586,545 4,048 590,593 592,870 4,397 597,267 Gross Profit 174,038 23,481 197,519 173,383 22,287 195,670 Selling, general, and administrative 128,142 8,214 136,356 129,856 6,454 136,310 Depreciation and amortization 6,801 56 6,857 6,936 84 7,020 Interest and financing costs 266 558 824 - 1,204 1,204 Operating expenses 135,209 8,828 144,037 136,792 7,742 144,534 Operating income 38,829 14,653 53,482 36,591 14,545 51,136 Other income 282 (85 ) Earnings before tax $ 53,764 $ 51,051 Net Sales Contracts with customers $ 746,344 $ 1,988 $ 748,332 $ 758,266 $ 2,200 $ 760,466 Financing and other 14,239 25,541 39,780 7,987 24,484 32,471 Net Sales $ 760,583 $ 27,529 $ 788,112 $ 766,253 $ 26,684 $ 792,937 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 7,133 $ 2,327 $ 9,460 $ 7,283 $ 2,794 $ 10,077 Purchases of property, equipment and operating lease equipment $ 3,101 $ 166 $ 3,267 $ 2,675 $ 2,213 $ 4,888 Selected Financial Data - Balance Sheet Total assets $ 812,633 $ 226,078 $ 1,038,711 $ 690,648 $ 223,618 $ 914,266 Technology Segment Disaggregation of Revenue We analyze net sales for our technology segment by customer end market and by vendor, as opposed to discrete product and service categories, which are summarized for the three and six month periods ended September 30, 2020, and 2019 in the tables below (in thousands): Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Customer end market: Technology $ 76,321 $ 97,502 $ 146,288 $ 173,682 Telecom, Media & Entertainment 96,927 71,044 153,579 133,510 Financial Services 46,732 44,605 94,153 92,847 State and local government and educational institutions 76,492 71,866 147,055 143,057 Healthcare 59,252 59,818 105,788 115,926 All others 63,635 52,883 113,720 107,231 Net sales 419,359 397,718 760,583 766,253 Less: Revenue from financing and other (7,002 ) (3,133 ) (14,239 ) (7,987 ) Revenue from contracts with customers $ 412,357 $ 394,585 $ 746,344 $ 758,266 Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Vendor Cisco Systems $ 173,166 $ 172,605 $ 301,098 $ 318,786 NetApp 9,914 9,771 25,335 23,198 HP Inc. & HPE 16,395 18,986 33,433 42,099 Dell EMC 15,349 12,494 46,430 26,275 Arista Networks 13,443 26,766 20,263 47,716 Juniper Networks 24,716 24,370 38,295 31,424 All others 166,376 132,726 295,729 276,755 Net sales 419,359 397,718 760,583 766,253 Less: Revenue from financing and other (7,002 ) (3,133 ) (14,239 ) (7,987 ) Revenue from contracts with customers $ 412,357 $ 394,585 $ 746,344 $ 758,266 Financing Segment Disaggregation of Revenue We analyze our revenues within our financing segment based on the nature of the arrangement, and our revenues from contracts with customers consist of proceeds from the sale of off-lease equipment. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Sep. 30, 2020 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION — The e acquisition. |
INTERIM FINANCIAL STATEMENTS | INTERIM FINANCIAL STATEMENTS — The unaudited consolidated financial statements for the six months ended September 30, 2020, and 2019, were prepared by us and include all normal and recurring adjustments that, in the opinion of management, are necessary for a fair presentation of our financial position, results of operations, changes in comprehensive income, and cash flows for such periods. Operating results for the six months ended September 30, 2020, and 2019 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending March 31, 2021, or any other future period. These unaudited consolidated financial statements do not include all disclosures required by the accounting principles generally accepted in the United States (“US GAAP”) for annual financial statements. Our audited consolidated financial statements are contained in our annual report on Form 10-K for the year ended March 31, 2020 (“2020 Annual Report”), which should be read in conjunction with these interim consolidated financial statements. |
USE OF ESTIMATES | USE OF ESTIMATES — The estimates. |
CONCENTRATIONS OF RISK | CONCENTRATIONS OF RISK — A substantial portion of our sales are products from Cisco Systems, which were 41% and 43% of our technology segment’s net sales for the three months ended September 30, 2020, and 2019, respectively, and 40% and 42% of our technology segment’s net sales for the six months ended September 30, 2020, and 2019, respectively. |
ALLOWANCE FOR CREDIT LOSSES | ALLOWANCE FOR CREDIT LOSSES — We maintain an allowance for credit losses related to our accounts receivable and financing receivables. We record an expense in the amount necessary to adjust the allowance for credit losses to our current estimate of expected credit losses on financial assets. We estimate expected credit losses based on our internal rating of the customer’s credit quality, our historical credit losses, current economic conditions, and other relevant factors. Prior to providing credit, we assign an internal rating for each customer’s credit quality based on the customer’s financial status, rating agency reports and other financial information. We review our internal ratings for each customer at least annually or when there is an indicator of a change in credit quality, such as a delinquency or bankruptcy. We charge off uncollectable financing receivables when we stop pursuing collection. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 6 Months Ended |
Sep. 30, 2020 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | CREDIT LOSSES — Note 7 |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
REVENUES [Abstract] | |
Balance of Receivables, Contract Assets, and Contract Liabilities | Accounts receivable – trade consists entirely of amounts due from contracts with customers. In addition, we had $ million and $ million of receivables from contracts with customers included within financing receivables as of September and March respectively. The following table provides the balance of contract liabilities from contracts with customers (in s): Contract liabilities September 30, 2020 March 31, 2020 Current (included in deferred revenue) $ 58,267 $ 54,486 Non-current (included in other liabilities) $ 18,794 $ 16,395 |
Remaining Performance Obligations | The following table includes revenue expected to be recognized in the future related to performance obligations, primarily non-cancelable contracts for e Plus managed services, that are unsatisfied or partially unsatisfied at the end of the reporting period, (in s). Remainder of Year ending March 31, 2021 $ 20,527 Year Ending March 31, 2022 18,889 Year Ending March 31, 2023 8,385 Year Ending March 31, 2024 2,026 Year Ending March 31, 2025 516 Year Ending March 31, 2026 and thereafter 111 Total remaining performance obligations $ 50,454 |
FINANCING RECEIVABLES AND OPE_2
FINANCING RECEIVABLES AND OPERATING LEASES (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
FINANCING RECEIVABLES AND OPERATING LEASES [Abstract] | |
Sales-type Leases | The following table provides the profit recognized for sales-type leases at their commencement date, including modifications that are recognized on a net basis, for the three and six months ended September 30, 2020, and 2019 (in thousands): Three months ended September 30, 2020 Three months ended September 30, 2019 Six months ended September 30, 2020 Six months ended September 30, 2019 Net sales $ 7,655 $ 3,133 $ 17,818 $ 7,987 Cost of sales 5,402 2,702 10,729 6,652 Gross profit $ 2,253 $ 431 $ 7,089 $ 1,335 The following table provides interest income in aggregate on our sales-type leases and lease income on our operating leases for the three and six months ended September 30, 2020, and 2019 (in thousands): Three months ended September 30 2020 Three months ended September 30, 2019 Six months ended September 30, 2020 Six months ended September 30, 2019 Interest income on sales-type leases $ 1,884 $ 1,495 $ 4,103 $ 3,590 Lease income on operating leases $ 3,900 $ 5,059 $ 7,738 $ 10,418 |
Notes Receivable Net and Investments in Leases | The following tables provide a disaggregation of our financing receivables – net (in s): September 30, 2020 Notes Receivable Lease Receivables Financing Receivables Gross receivables $ 90,002 $ 76,700 $ 166,702 Unguaranteed residual value (1) - 20,213 20,213 Initial direct costs, net of amortization 364 - 364 Unearned income - (11,329 ) (11,329 ) Reserve for credit losses (2) (1,337 ) (1,227 ) (2,564 ) Total, net $ 89,029 $ 84,357 $ 173,386 Reported as: Current $ 52,397 $ 40,369 $ 92,766 Long-term 36,632 43,988 80,620 Total, net $ 89,029 $ 84,357 $ 173,386 (1) Includes unguaranteed residual values of $12,644 thousand that we retained after selling the related lease receivable. (2) Refer to Note 7 , “Allowance for Credit Losses” for details. March 31, 2020 Notes Receivable Lease Receivables Financing Receivables Minimum payments $ 55,417 $ 69,492 $ 124,909 Estimated unguaranteed residual value (1) - 21,862 21,862 Initial direct costs, net of amortization 212 247 459 Unearned income - (11,612 ) (11,612 ) Reserve for credit losses (2) (798 ) (610 ) (1,408 ) Total, net $ 54,831 $ 79,379 $ 134,210 Reported as: Current $ 31,181 $ 38,988 $ 70,169 Long-term 23,650 40,391 64,041 Total, net $ 54,831 $ 79,379 $ 134,210 (1) Includes unguaranteed residual values of for sales type leases, which have been sold and accounted for as sales. (2) Refer to Note 7 “Allowance for Credit Losses” for details. |
Future Scheduled Minimum Lease Payments | The following table provides the future scheduled minimum lease payments for investments in sales-type leases as of September (in s): Remainder of the Year ending March 31, 2021 $ 46,006 Year Ending March 31, 2022 19,376 Year Ending March 31, 2023 8,196 Year Ending March 31, 2024 2,205 Year Ending March 31, 2025 and thereafter 917 Total $ 76,700 |
Investment in Operating Lease Equipment - Net | Operating leases—net represents leases that do not qualify as sales-type leases. The components of the operating leases—net are as follows (in thousands): September 30, 2020 March 31, 2020 Cost of equipment under operating leases $ 19,578 $ 21,276 Accumulated depreciation (12,272 ) (11,159 ) Investment in operating lease equipment—net (1) $ 7,306 $ 10,117 (1) Amounts include estimated unguaranteed residual values of $2.5 million and $3.1 million as of September 30, 2020, and March 31, 2020, respectively. |
Future Minimum Rental Payments for Operating Leases | The following table provides the future scheduled minimum lease rental payments for operating leases as of September (in s): Remainder of the Year ending March 31, 2021 $ 1,534 Year Ending March 31, 2022 1,927 Year Ending March 31, 2023 1,436 Year Ending March 31, 2024 477 Year Ending March 31, 2025 and thereafter 35 Total $ 5,409 |
LESSEE ACCOUNTING (Tables)
LESSEE ACCOUNTING (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
LESSEE ACCOUNTING [Abstract] | |
Supplemental Information of Remaining Lease Terms and Discount Rates | The following table provides supplemental information about the remaining lease terms and discount rates applied as of September and March : Lease term and Discount Rate September 30, 2020 March 31, 2020 Weighted average remaining lease term (months) 34 38 Weighted average discount rate 3.8 % 3.9 % |
Future Lease Payments Under Operating Leases | The following table provides our future lease payments under our operating leases as of September (in s): September 30, 2020 Remainder of the year ending March 31, 2021 $ 2,432 Year ending March 31, 2022 4,319 Year ending March 31, 2023 3,093 Year ending March 31, 2024 1,249 Year ending March 31, 2025 and thereafter 813 Total lease payments $ 11,906 Less: interest (617 ) Present value of lease liabilities $ 11,289 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |
Other Intangible Assets | Our other intangible assets consist of the following on September 30, 2020, and March 31, 2020 (in thousands): September 30, 2020 March 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships & other intangibles $ 63,093 $ (37,467 ) $ 25,626 $ 63,006 $ (33,000 ) $ 30,006 Capitalized software development 11,176 (6,537 ) 4,639 10,385 (5,927 ) 4,458 Total $ 74,269 $ (44,004 ) $ 30,265 $ 73,391 $ (38,927 ) $ 34,464 |
ALLOWANCE FOR CREDIT LOSSES (Ta
ALLOWANCE FOR CREDIT LOSSES (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
ALLOWANCE FOR CREDIT LOSSES [Abstract] | |
Activity in Reserves for Credit Losses | The following table provides the activity in our allowance for credit losses for the six months ended September 30, 2020, and 2019 (in thousands): Accounts Receivable Notes Receivable Lease Receivables Total Balance April 1, 2020 $ 1,781 $ 798 $ 610 $ 3,189 Provision for credit losses 576 566 624 1,766 Write-offs and other (27 ) (27 ) (7 ) (61 ) Balance September 30, 2020 $ 2,330 $ 1,337 $ 1,227 $ 4,894 Accounts Receivable Notes Receivable Lease Receivables Total Balance April 1, 2019 $ 1,579 $ 505 $ 530 $ 2,614 Provision for credit losses 311 15 (27 ) 299 Write-offs and other (42 ) - (3 ) (45 ) Balance September 30, 2019 $ 1,848 $ 520 $ 500 $ 2,868 |
Allowance for Credit Losses and Minimum Payments Associated with Notes Receivable and Lease Related Receivables Disaggregated Based on Impairment Method | The following table provides our allowance for credit losses and minimum payments associated with our notes receivables and lease-related receivables disaggregated based on our impairment method as of March 31, 2020 (in thousands): March 31, 2020 Notes Receivable Lease Receivables Allowance for credit losses: Ending balance: collectively evaluated for impairment $ 736 $ 610 Ending balance: individually evaluated for impairment 62 - Ending balance $ 798 $ 610 Minimum payments: Ending balance: collectively evaluated for impairment $ 55,005 $ 69,492 Ending balance: individually evaluated for impairment 412 - Ending balance $ 55,417 $ 69,492 |
Amortized Cost Basis of Financing Receivables by CQR and Credit Origination Year | The following table provides the amortized cost basis of our financing receivables by CQR and by credit origination year as of September 30, 2020 (in thousands): Amortized cost basis by origination year ending March 31, 2021 2020 2019 2018 2017 2016 and prior Total Transfers (2) Net credit exposure Notes receivable: High CQR $ 64,678 $ 9,744 $ 2,434 $ 947 $ 38 $ - $ 77,841 $ (35,867 ) $ 41,974 Average CQR 6,189 4,697 837 52 - - 11,775 (3,651 ) 8,124 Low CQR - - 324 - - 62 386 - 386 Total $ 70,867 $ 14,441 $ 3,595 $ 999 $ 38 $ 62 $ 90,002 $ (39,518 ) $ 50,484 Lease receivables: High CQR $ 21,650 $ 11,826 $ 3,609 $ 998 $ 314 $ 8 $ 38,405 $ (9,518 ) $ 28,887 Average CQR 22,447 9,415 1,921 646 106 - 34,535 (11,409 ) 23,126 Low CQR - - - - - - - - - Total $ 44,097 $ 21,241 $ 5,530 $ 1,644 $ 420 $ 8 $ 72,940 $ (20,927 ) $ 52,013 Total amortized cost (1) $ 114,964 $ 35,682 $ 9,125 $ 2,643 $ 458 $ 70 $ 162,942 $ (60,445 ) $ 102,497 (1) Unguaranteed residual values of $ thousand that we retained after selling the related lease receivable and initial direct costs of notes receivable of $ thousand are excluded from amortized cost. (2) Transfers consist of receivables that have been transferred to third-party financial institutions on a non-recourse basis and receivables that are in the process of being transferred to third-party financial institutions. |
Aging Analysis of Financing Receivables | The following table provides an aging analysis of our financing receivables as of , (in thousands): 31-60 Days Past Due 61-90 Days Past Due > 90 Days Past Due Total Past Due Current Total Billed Unbilled Amortized Cost Notes receivable $ 925 $ 270 $ 823 $ 2,018 $ 10,105 $ 12,123 $ 77,879 $ 90,002 Lease receivables 660 2,049 1,771 4,480 1,754 6,234 66,706 72,940 Total $ 1,585 $ 2,319 $ 2,594 $ 6,498 $ 11,859 $ 18,357 $ 144,585 $ 162,942 |
Aging Analysis of Financing Receivables by CQR | The following table provides an aging analysis of our lease receivables by CQR as of March 31, (in thousands): 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Current Unbilled Minimum Lease Payments Total Minimum Lease Payments Unearned Income Non- Recourse Notes Payable Net Credit Exposure High CQR $ 951 $ 105 $ 922 $ 1,978 $ 1,181 $ 33,581 $ 36,740 $ (4,766 ) $ (19,823 ) $ 12,151 Average CQR 46 107 112 265 1,106 31,381 32,752 (3,646 ) (18,693 ) 10,413 Low CQR - - - - - - - - - - Total $ 997 $ 212 $ 1,034 $ 2,243 $ 2,287 $ 64,962 $ 69,492 $ (8,412 ) $ (38,516 ) $ 22,564 The following table provides an aging analysis of our notes receivable by CQR as of March 31, (in thousands): 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Current Unbilled Notes Receivable Total Notes Receivable Non- Recourse Notes Payable Net Credit Exposure High CQR $ 1,332 $ 2 $ 280 $ 1,614 $ 2,878 $ 29,057 $ 33,549 $ (18,341 ) $ 15,208 Average CQR 140 44 142 326 1,135 19,995 21,456 (16,636 ) 4,820 Low CQR 63 - 152 215 - 197 412 - 412 Total $ 1,535 $ 46 $ 574 $ 2,155 $ 4,013 $ 49,249 $ 55,417 $ (34,977 ) $ 20,440 |
PROPERTY, EQUIPMENT, OTHER AS_2
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES [Abstract] | |
Property, Equipment, Other Assets and Liabilities | Our property, equipment, other assets and liabilities consist of the following (in thousands): September 30, 2020 March 31, 2020 Other current assets: Deposits & funds held in escrow $ 339 $ 926 Prepaid assets 7,640 7,946 Other 254 384 Total $ 8,233 $ 9,256 Property, equipment and other assets Property and equipment, net $ 7,258 $ 7,153 Deferred costs - non-current 12,568 10,957 Right-of-use assets 11,069 13,066 Other 3,419 1,420 Total $ 34,314 $ 32,596 Other current liabilities : Accrued expenses $ 10,639 $ 10,024 Accrued income taxes payable 3,021 406 Contingent consideration - current - 220 Short-term lease liability 4,698 4,815 Other 7,014 7,521 Total $ 25,372 $ 22,986 Other liabilities : Deferred revenue $ 19,074 $ 16,693 Long-term lease liability 6,590 8,326 Other 7,278 2,708 Total $ 32,942 $ 27,727 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
EARNINGS PER SHARE [Abstract] | |
Reconciliation of Numerators and Denominators Used to Calculate Basic and Diluted Earnings per Common Share | The following table provides a reconciliation of the numerators and denominators used to calculate basic and diluted net income per common share as disclosed on our unaudited consolidated statements of operations for the three and six months ended September 30, 2020, and 2019, respectively (in thousands, except per share data). Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Net earnings attributable to common shareholders - basic and diluted $ 19,846 $ 20,098 $ 37,206 $ 36,286 Basic and diluted common shares outstanding: Weighted average common shares outstanding — basic 13,372 13,312 13,347 13,334 Effect of dilutive shares 19 38 47 74 Weighted average shares common outstanding — diluted 13,391 13,350 13,394 13,408 Earnings per common share - basic $ 1.48 $ 1.51 $ 2.79 $ 2.72 Earnings per common share - diluted $ 1.48 $ 1.51 $ 2.78 $ 2.71 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
SHARE-BASED COMPENSATION [Abstract] | |
Summary of Non-vested Restricted Shares | For the six months ended September 30, 2020, we granted 9,309 restricted shares under the 2017 Director LTIP, and 89,873 restricted shares under the 2012 Employee LTIP. For the six months ended September 30, 2019, we granted 8,132 restricted shares under the 2017 Director LTIP, and 85,132 restricted shares under the 2012 Employee LTIP. A summary of the restricted shares is as follows: Number of Shares Weighted Average Grant- date Fair Value Nonvested April 1, 2020 193,580 $ 73.74 Granted 99,182 $ 71.81 Vested (110,155 ) $ 70.00 Forfeited - $ - Nonvested September 30, 2020 182,607 $ 74.95 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
Fair Value Hierarchy of Financial Instruments | We account for the fair values of our assets and liabilities in accordance with Codification Topic 820, Fair Value Measurement and Disclosure. Fair Value Measurement Using Recorded Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30 , 2020 Assets: Money market funds $ 45,132 $ 45,132 $ - $ - March 31 , 2020 Assets: Money market funds $ 128 $ 128 $ - $ - Liabilities: Contingent consideration $ 220 $ - $ - $ 220 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
BUSINESS COMBINATIONS [Abstract] | |
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed | Our sum of consideration transferred was $ million consisting of $ million paid in cash at closing plus $ million that was paid primarily during the year ended March 31, 2020, upon the collection of certain accounts receivable and less $ million that was repaid to us in December 2019 due to a working capital adjustment. Our allocation of the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands): Acquisition Date Amount Accounts receivable 9,208 Other assets 743 Identified intangible assets 5,720 Accounts payable and other current liabilities (6,715 ) Performance obligation (1,140 ) Total identifiable net assets 7,816 Goodwill 7,461 Total purchase consideration $ 15,277 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
SEGMENT REPORTING [Abstract] | |
Segment Reporting Information, by Reportable Segment | Our reportable segment information for the three- and six-month periods ended September 30, 2020, and 2019 are summarized in the following tables (in thousands): Three Months Ended September 30, 2020 September 30, 2019 Technology Financing Total Technology Financing Total Sales Product $ 369,934 $ 13,722 $ 383,656 $ 349,650 $ 13,847 $ 363,497 Service 49,425 - 49,425 48,068 - 48,068 Net sales 419,359 13,722 433,081 397,718 13,847 411,565 Cost of Sales Product 301,006 1,957 302,963 276,475 2,388 278,863 Service 31,156 - 31,156 29,671 - 29,671 Total cost of sales 332,162 1,957 334,119 306,146 2,388 308,534 Gross Profit 87,197 11,765 98,962 91,572 11,459 103,031 Selling, general, and administrative 62,586 4,303 66,889 67,189 3,334 70,523 Depreciation and amortization 3,313 28 3,341 3,529 28 3,557 Interest and financing costs 1 246 247 - 576 576 Operating expenses 65,900 4,577 70,477 70,718 3,938 74,656 Operating income 21,297 7,188 28,485 20,854 7,521 28,375 Other income 184 (40 ) Earnings before tax $ 28,669 $ 28,335 Net Sales Contracts with customers $ 412,357 $ 1,028 $ 413,385 $ 394,585 $ 1,411 $ 395,996 Financing and other 7,002 12,694 19,696 3,133 12,436 15,569 Net Sales $ 419,359 $ 13,722 $ 433,081 $ 397,718 $ 13,847 $ 411,565 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 3,499 $ 1,182 $ 4,681 $ 3,658 $ 1,455 $ 5,113 Purchases of property, equipment and operating lease equipment $ 990 $ - $ 990 $ 1,426 $ 1,944 $ 3,370 Selected Financial Data - Balance Sheet Total assets $ 812,633 $ 226,078 $ 1,038,711 $ 690,648 $ 223,618 $ 914,266 Six Months Ended September 30, 2020 September 30, 2019 Technology Financing Total Technology Financing Total Sales Product $ 663,367 $ 27,529 $ 690,896 $ 672,414 $ 26,684 $ 699,098 Service 97,216 - 97,216 93,839 - 93,839 Net sales 760,583 27,529 788,112 766,253 26,684 792,937 Cost of Sales Product 525,549 4,048 529,597 534,529 4,397 538,926 Service 60,996 - 60,996 58,341 - 58,341 Total cost of sales 586,545 4,048 590,593 592,870 4,397 597,267 Gross Profit 174,038 23,481 197,519 173,383 22,287 195,670 Selling, general, and administrative 128,142 8,214 136,356 129,856 6,454 136,310 Depreciation and amortization 6,801 56 6,857 6,936 84 7,020 Interest and financing costs 266 558 824 - 1,204 1,204 Operating expenses 135,209 8,828 144,037 136,792 7,742 144,534 Operating income 38,829 14,653 53,482 36,591 14,545 51,136 Other income 282 (85 ) Earnings before tax $ 53,764 $ 51,051 Net Sales Contracts with customers $ 746,344 $ 1,988 $ 748,332 $ 758,266 $ 2,200 $ 760,466 Financing and other 14,239 25,541 39,780 7,987 24,484 32,471 Net Sales $ 760,583 $ 27,529 $ 788,112 $ 766,253 $ 26,684 $ 792,937 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 7,133 $ 2,327 $ 9,460 $ 7,283 $ 2,794 $ 10,077 Purchases of property, equipment and operating lease equipment $ 3,101 $ 166 $ 3,267 $ 2,675 $ 2,213 $ 4,888 Selected Financial Data - Balance Sheet Total assets $ 812,633 $ 226,078 $ 1,038,711 $ 690,648 $ 223,618 $ 914,266 |
Technology Segment Disaggregation of Revenue | We analyze net sales for our technology segment by customer end market and by vendor, as opposed to discrete product and service categories, which are summarized for the three and six month periods ended September 30, 2020, and 2019 in the tables below (in thousands): Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Customer end market: Technology $ 76,321 $ 97,502 $ 146,288 $ 173,682 Telecom, Media & Entertainment 96,927 71,044 153,579 133,510 Financial Services 46,732 44,605 94,153 92,847 State and local government and educational institutions 76,492 71,866 147,055 143,057 Healthcare 59,252 59,818 105,788 115,926 All others 63,635 52,883 113,720 107,231 Net sales 419,359 397,718 760,583 766,253 Less: Revenue from financing and other (7,002 ) (3,133 ) (14,239 ) (7,987 ) Revenue from contracts with customers $ 412,357 $ 394,585 $ 746,344 $ 758,266 Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Vendor Cisco Systems $ 173,166 $ 172,605 $ 301,098 $ 318,786 NetApp 9,914 9,771 25,335 23,198 HP Inc. & HPE 16,395 18,986 33,433 42,099 Dell EMC 15,349 12,494 46,430 26,275 Arista Networks 13,443 26,766 20,263 47,716 Juniper Networks 24,716 24,370 38,295 31,424 All others 166,376 132,726 295,729 276,755 Net sales 419,359 397,718 760,583 766,253 Less: Revenue from financing and other (7,002 ) (3,133 ) (14,239 ) (7,987 ) Revenue from contracts with customers $ 412,357 $ 394,585 $ 746,344 $ 758,266 |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net Sales [Member] | Cisco Systems [Member] | Technology Segment [Member] | ||||
Concentration of risk [Abstract] | ||||
Percentage of concentration risk | 41.00% | 43.00% | 40.00% | 42.00% |
REVENUES (Details)
REVENUES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Contract with Customer, Asset and Liability [Abstract] | |||||
Accounts receivable - trade | $ 41,300 | $ 41,300 | $ 33,100 | ||
Current (included in deferred revenue) | 58,267 | 58,267 | 54,486 | ||
Non-current (included in other liabilities) | 18,794 | 18,794 | $ 16,395 | ||
Revenue recognized from the beginning contract liability | 11,300 | $ 13,600 | 26,900 | $ 29,400 | |
Revenue, Performance Obligation Satisfied over Time [Abstract] | |||||
Remaining performance obligation | 50,454 | 50,454 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |||||
Revenue, Performance Obligation Satisfied over Time [Abstract] | |||||
Remaining performance obligation | $ 20,527 | $ 20,527 | |||
Expected timing of satisfaction, period | 6 months | 6 months | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |||||
Revenue, Performance Obligation Satisfied over Time [Abstract] | |||||
Remaining performance obligation | $ 18,889 | $ 18,889 | |||
Expected timing of satisfaction, period | 1 year | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |||||
Revenue, Performance Obligation Satisfied over Time [Abstract] | |||||
Remaining performance obligation | $ 8,385 | $ 8,385 | |||
Expected timing of satisfaction, period | 1 year | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |||||
Revenue, Performance Obligation Satisfied over Time [Abstract] | |||||
Remaining performance obligation | $ 2,026 | $ 2,026 | |||
Expected timing of satisfaction, period | 1 year | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |||||
Revenue, Performance Obligation Satisfied over Time [Abstract] | |||||
Remaining performance obligation | $ 516 | $ 516 | |||
Expected timing of satisfaction, period | 1 year | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01 | |||||
Revenue, Performance Obligation Satisfied over Time [Abstract] | |||||
Remaining performance obligation | $ 111 | $ 111 | |||
Expected timing of satisfaction, period |
FINANCING RECEIVABLES AND OPE_3
FINANCING RECEIVABLES AND OPERATING LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |||||
Profit Recognized for Sales-type Leases [Abstract] | ||||||||||
Net sales | $ 7,655 | $ 3,133 | $ 17,818 | $ 7,987 | ||||||
Cost of sales | 5,402 | 2,702 | 10,729 | 6,652 | ||||||
Gross Profit | 2,253 | 431 | 7,089 | 1,335 | ||||||
Interest Income on Sales-type Leases [Abstract] | ||||||||||
Interest Income on sales-type leases | 1,884 | 1,495 | 4,103 | 3,590 | ||||||
Lease income on operating leases | 3,900 | 5,059 | 7,738 | 10,418 | ||||||
Financing Receivables [Abstract] | ||||||||||
Estimated unguaranteed residual value | 12,644 | 12,644 | ||||||||
Initial direct costs, net of amortization | 364 | 364 | ||||||||
Reserve for credit losses | (4,894) | (2,868) | (4,894) | (2,868) | $ (3,189) | $ (2,614) | ||||
Reported as [Abstract] | ||||||||||
Current | 92,766 | 92,766 | 70,169 | |||||||
Future scheduled minimum lease payments [Abstract] | ||||||||||
Remainder of year ending March 31, 2021 | 46,006 | 46,006 | ||||||||
Year ending March 31, 2022 | 19,376 | 19,376 | ||||||||
Year ending March 31, 2023 | 8,196 | 8,196 | ||||||||
Year ending March 31, 2024 | 2,205 | 2,205 | ||||||||
Year ending March 31, 2025 and thereafter | 917 | 917 | ||||||||
Total | 76,700 | 76,700 | ||||||||
Estimated unguaranteed residual values for direct financing lease | 12,644 | 12,644 | 14,972 | |||||||
Investment in operating lease equipment - net [Abstract] | ||||||||||
Cost of equipment under operating leases | 19,578 | 19,578 | 21,276 | |||||||
Accumulated depreciation | (12,272) | (12,272) | (11,159) | |||||||
Investment in operating lease equipment - net | [1] | 7,306 | 7,306 | 10,117 | ||||||
Unguaranteed residual value of operating lease equipment net | 2,500 | 2,500 | 3,100 | |||||||
Future scheduled minimum lease rental payments [Abstract] | ||||||||||
Remainder of year ending March 31, 2021 | 1,534 | 1,534 | ||||||||
Year ending March 31, 2022 | 1,927 | 1,927 | ||||||||
Year ending March 31, 2023 | 1,436 | 1,436 | ||||||||
Year ending March 31, 2024 | 477 | 477 | ||||||||
Year ending March 31, 2025 and thereafter | 35 | 35 | ||||||||
Total | 5,409 | 5,409 | ||||||||
Collateral for non-recourse notes payable - Finance receivables | 33,700 | 33,700 | 34,600 | |||||||
Collateral for non-recourse notes payable - Operating leases | 4,900 | 4,900 | 6,700 | |||||||
Gain on sale of financing receivables | 4,500 | 4,100 | 7,000 | 7,500 | ||||||
Proceeds from sale of financing receivables | 118,500 | 95,100 | 191,700 | 172,000 | ||||||
Contract liabilities - servicing of financial assets | 400 | 400 | 400 | |||||||
Notes Receivables [Member] | ||||||||||
Financing Receivables [Abstract] | ||||||||||
Minimum payments | 90,002 | 90,002 | 55,417 | |||||||
Estimated unguaranteed residual value | 0 | [2] | 0 | [2] | 0 | [3] | ||||
Initial direct costs, net of amortization | [4] | 364 | 364 | 212 | ||||||
Unearned income | 0 | 0 | 0 | |||||||
Reserve for credit losses | (1,337) | [4] | (520) | (1,337) | [4] | (520) | (798) | [4] | (505) | |
Total, net | 89,029 | 89,029 | 54,831 | |||||||
Reported as [Abstract] | ||||||||||
Current | 52,397 | 52,397 | 31,181 | |||||||
Long-term | 36,632 | 36,632 | 23,650 | |||||||
Total, net | 89,029 | 89,029 | 54,831 | |||||||
Lease Receivables [Member] | ||||||||||
Financing Receivables [Abstract] | ||||||||||
Minimum payments | 76,700 | 76,700 | 69,492 | |||||||
Estimated unguaranteed residual value | 20,213 | [2] | 20,213 | [2] | 21,862 | [3] | ||||
Initial direct costs, net of amortization | [4] | 0 | 0 | 247 | ||||||
Unearned income | (11,329) | (11,329) | (11,612) | |||||||
Reserve for credit losses | (1,227) | [4] | $ (500) | (1,227) | [4] | $ (500) | (610) | [4] | $ (530) | |
Total, net | 84,357 | 84,357 | 79,379 | |||||||
Reported as [Abstract] | ||||||||||
Current | 40,369 | 40,369 | 38,988 | |||||||
Long-term | 43,988 | 43,988 | 40,391 | |||||||
Total, net | 84,357 | 84,357 | 79,379 | |||||||
Financing Receivables [Member] | ||||||||||
Financing Receivables [Abstract] | ||||||||||
Minimum payments | 166,702 | 166,702 | 124,909 | |||||||
Estimated unguaranteed residual value | 20,213 | [2] | 20,213 | [2] | 21,862 | [3] | ||||
Initial direct costs, net of amortization | [4] | 364 | 364 | 459 | ||||||
Unearned income | (11,329) | (11,329) | (11,612) | |||||||
Reserve for credit losses | [4] | (2,564) | (2,564) | (1,408) | ||||||
Total, net | 173,386 | 173,386 | 134,210 | |||||||
Reported as [Abstract] | ||||||||||
Current | 92,766 | 92,766 | 70,169 | |||||||
Long-term | 80,620 | 80,620 | 64,041 | |||||||
Total, net | $ 173,386 | $ 173,386 | $ 134,210 | |||||||
[1] | Amounts include estimated unguaranteed residual values of $2.5 million and $3.1 million as of September 30, 2020, and March 31, 2020, respectively. | |||||||||
[2] | Includes unguaranteed residual values of $12,644 thousand that we retained after selling the related lease receivable. | |||||||||
[3] | Includes unguaranteed residual values of $14,972 thousand for sales type leases, which have been sold and accounted for as sales. | |||||||||
[4] | Refer to Note 7, “Allowance for Credit Losses” for details. |
LESSEE ACCOUNTING (Details)
LESSEE ACCOUNTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Lessee, Operating Lease [Abstract] | |||||
Rent expense | $ 1,500 | $ 1,500 | $ 3,100 | $ 3,100 | |
Lease Term and Discount Rate [Abstract] | |||||
Weighted average remaining lease term (months) | 34 months | 34 months | 38 months | ||
Weighted average discount rate | 3.80% | 3.80% | 3.90% | ||
Future Lease Payments under Operating Leases [Abstract] | |||||
Remainder of year ending March 31, 2021 | $ 2,432 | $ 2,432 | |||
Year ending March 31, 2022 | 4,319 | 4,319 | |||
Year ending March 31, 2023 | 3,093 | 3,093 | |||
Year ending March 31, 2024 | 1,249 | 1,249 | |||
Year ending March 31, 2025 and thereafter | 813 | 813 | |||
Total lease payments | 11,906 | 11,906 | |||
Less: Interest | (617) | (617) | |||
Present value of lease liabilities | $ 11,289 | $ 11,289 | |||
Maximum [Member] | |||||
Lessee, Operating Lease [Abstract] | |||||
Operating lease term | 6 years | 6 years |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, Goodwill (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($)Unit | Mar. 31, 2020USD ($)Unit | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ||
Carrying value of goodwill | $ 118,177 | $ 118,097 |
Change in foreign currency translation | $ 100 | |
Number of reporting units | Unit | 1 | 1 |
Percentage change in the fair value | 10.00% |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS, Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Other Intangible Assets [Abstract] | |||||
Gross carrying amount | $ 74,269 | $ 74,269 | $ 73,391 | ||
Accumulated amortization | (44,004) | (44,004) | (38,927) | ||
Net carrying amount | 30,265 | 30,265 | 34,464 | ||
Total amortization expense for other intangible assets | 2,500 | $ 2,500 | 5,000 | $ 4,900 | |
Customer Relationships and Other Intangibles [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Gross carrying amount | 63,093 | 63,093 | 63,006 | ||
Accumulated amortization | (37,467) | (37,467) | (33,000) | ||
Net carrying amount | 25,626 | $ 25,626 | 30,006 | ||
Customer Relationships and Other Intangibles [Member] | Minimum [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Estimated useful life | 5 years | ||||
Customer Relationships and Other Intangibles [Member] | Maximum [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Estimated useful life | 10 years | ||||
Capitalized Software Development [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Gross carrying amount | 11,176 | $ 11,176 | 10,385 | ||
Accumulated amortization | (6,537) | (6,537) | (5,927) | ||
Net carrying amount | $ 4,639 | $ 4,639 | $ 4,458 | ||
Capitalized Software Development [Member] | Minimum [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Estimated useful life | 5 years |
ALLOWANCE FOR CREDIT LOSSES, Ac
ALLOWANCE FOR CREDIT LOSSES, Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Activity in reserves for credit losses [Roll Forward] | |||
Balance | $ 3,189 | $ 2,614 | |
Provision for credit losses | 1,766 | 299 | |
Write-offs and other | (61) | (45) | |
Balance | 4,894 | 2,868 | |
Accounts Receivable [Member] | |||
Activity in reserves for credit losses [Roll Forward] | |||
Balance | 1,781 | 1,579 | |
Provision for credit losses | 576 | 311 | |
Write-offs and other | (27) | (42) | |
Balance | 2,330 | 1,848 | |
Notes Receivable [Member] | |||
Activity in reserves for credit losses [Roll Forward] | |||
Balance | 798 | [1] | 505 |
Provision for credit losses | 566 | 15 | |
Write-offs and other | (27) | 0 | |
Balance | 1,337 | [1] | 520 |
Lease Receivables [Member] | |||
Activity in reserves for credit losses [Roll Forward] | |||
Balance | 610 | [1] | 530 |
Provision for credit losses | 624 | (27) | |
Write-offs and other | (7) | (3) | |
Balance | $ 1,227 | [1] | $ 500 |
[1] | Refer to Note 7, “Allowance for Credit Losses” for details. |
ALLOWANCE FOR CREDIT LOSSES, Di
ALLOWANCE FOR CREDIT LOSSES, Disaggregated Based on Impairment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | ||
Allowance for credit losses [Abstract] | ||||||
Ending balance | $ 4,894 | $ 3,189 | $ 2,868 | $ 2,614 | ||
Notes Receivable [Member] | ||||||
Allowance for credit losses [Abstract] | ||||||
Ending balance: collectively evaluated for impairment | 736 | |||||
Ending balance: individually evaluated for impairment | 62 | |||||
Ending balance | 1,337 | [1] | 798 | [1] | 520 | 505 |
Minimum payments [Abstract] | ||||||
Ending balance: collectively evaluated for impairment | 55,005 | |||||
Ending balance: individually evaluated for impairment | 412 | |||||
Ending balance | 55,417 | |||||
Lease Receivables [Member] | ||||||
Allowance for credit losses [Abstract] | ||||||
Ending balance: collectively evaluated for impairment | 610 | |||||
Ending balance: individually evaluated for impairment | 0 | |||||
Ending balance | $ 1,227 | [1] | 610 | [1] | $ 500 | $ 530 |
Minimum payments [Abstract] | ||||||
Ending balance: collectively evaluated for impairment | 69,492 | |||||
Ending balance: individually evaluated for impairment | 0 | |||||
Ending balance | $ 69,492 | |||||
[1] | Refer to Note 7, “Allowance for Credit Losses” for details. |
ALLOWANCE FOR CREDIT LOSSES, Am
ALLOWANCE FOR CREDIT LOSSES, Amortized Cost Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Sep. 30, 2020 | Mar. 31, 2020 | ||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
2021 | [1] | $ 114,964 | |||
2020 | [1] | 35,682 | |||
2019 | [1] | 9,125 | |||
2018 | [1] | 2,643 | |||
2017 | [1] | 458 | |||
2016 and prior | [1] | 70 | |||
Total | [1] | 162,942 | |||
Transfers | [1],[2] | (60,445) | |||
Net credit exposure | [1] | 102,497 | |||
Unguaranteed residual value | 12,644 | ||||
Lease receivable and initial direct costs of notes receivable, net of amortization | 364 | ||||
Notes Receivable [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
2021 | 70,867 | ||||
2020 | 14,441 | ||||
2019 | 3,595 | ||||
2018 | 999 | ||||
2017 | 38 | ||||
2016 and prior | 62 | ||||
Total | 90,002 | ||||
Transfers | [2] | (39,518) | |||
Net credit exposure | 50,484 | ||||
Unguaranteed residual value | 0 | [3] | $ 0 | [4] | |
Lease receivable and initial direct costs of notes receivable, net of amortization | [5] | 364 | 212 | ||
Lease Receivables [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
2021 | 44,097 | ||||
2020 | 21,241 | ||||
2019 | 5,530 | ||||
2018 | 1,644 | ||||
2017 | 420 | ||||
2016 and prior | 8 | ||||
Total | 72,940 | ||||
Transfers | [2] | (20,927) | |||
Net credit exposure | 52,013 | ||||
Unguaranteed residual value | 20,213 | [3] | 21,862 | [4] | |
Lease receivable and initial direct costs of notes receivable, net of amortization | [5] | $ 0 | $ 247 | ||
High CQR [Member] | Maximum [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loss rate on credit quality rating | 1.00% | ||||
High CQR [Member] | Notes Receivable [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
2021 | $ 64,678 | ||||
2020 | 9,744 | ||||
2019 | 2,434 | ||||
2018 | 947 | ||||
2017 | 38 | ||||
2016 and prior | 0 | ||||
Total | 77,841 | ||||
Transfers | [2] | (35,867) | |||
Net credit exposure | 41,974 | ||||
High CQR [Member] | Lease Receivables [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
2021 | 21,650 | ||||
2020 | 11,826 | ||||
2019 | 3,609 | ||||
2018 | 998 | ||||
2017 | 314 | ||||
2016 and prior | 8 | ||||
Total | 38,405 | ||||
Transfers | [2] | (9,518) | |||
Net credit exposure | $ 28,887 | ||||
Average CQR [Member] | Minimum [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loss rate on credit quality rating | 2.00% | ||||
Average CQR [Member] | Maximum [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loss rate on credit quality rating | 10.00% | ||||
Average CQR [Member] | Notes Receivable [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
2021 | $ 6,189 | ||||
2020 | 4,697 | ||||
2019 | 837 | ||||
2018 | 52 | ||||
2017 | 0 | ||||
2016 and prior | 0 | ||||
Total | 11,775 | ||||
Transfers | [2] | (3,651) | |||
Net credit exposure | 8,124 | ||||
Average CQR [Member] | Lease Receivables [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
2021 | 22,447 | ||||
2020 | 9,415 | ||||
2019 | 1,921 | ||||
2018 | 646 | ||||
2017 | 106 | ||||
2016 and prior | 0 | ||||
Total | 34,535 | ||||
Transfers | [2] | (11,409) | |||
Net credit exposure | $ 23,126 | ||||
Low CQR [Member] | Minimum [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loss rate on credit quality rating | 10.00% | ||||
Low CQR [Member] | Maximum [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loss rate on credit quality rating | 100.00% | ||||
Low CQR [Member] | Notes Receivable [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
2021 | $ 0 | ||||
2020 | 0 | ||||
2019 | 324 | ||||
2018 | 0 | ||||
2017 | 0 | ||||
2016 and prior | 62 | ||||
Total | 386 | ||||
Transfers | [2] | 0 | |||
Net credit exposure | 386 | ||||
Low CQR [Member] | Lease Receivables [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
2018 | 0 | ||||
2017 | 0 | ||||
2016 and prior | 0 | ||||
Total | 0 | ||||
Transfers | [2] | 0 | |||
Net credit exposure | $ 0 | ||||
[1] | Unguaranteed residual values of $12,644 thousand that we retained after selling the related lease receivable and initial direct costs of notes receivable of $364 thousand are excluded from amortized cost. | ||||
[2] | Transfers consist of receivables that have been transferred to third-party financial institutions on a non-recourse basis and receivables that are in the process of being transferred to third-party financial institutions. | ||||
[3] | Includes unguaranteed residual values of $12,644 thousand that we retained after selling the related lease receivable. | ||||
[4] | Includes unguaranteed residual values of $14,972 thousand for sales type leases, which have been sold and accounted for as sales. | ||||
[5] | Refer to Note 7, “Allowance for Credit Losses” for details. |
ALLOWANCE FOR CREDIT LOSSES, Ag
ALLOWANCE FOR CREDIT LOSSES, Aging Analysis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 | |
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | $ 6,498 | ||
Current | 11,859 | ||
Billed | 18,357 | ||
Unbilled | 144,585 | ||
Total | [1] | 162,942 | |
Non-recourse notes payable | (275,000) | ||
Notes Receivable [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 2,018 | $ 2,155 | |
Current | 10,105 | 4,013 | |
Billed | 12,123 | ||
Unbilled | 77,879 | ||
Total | 90,002 | ||
Unbilled minimum lease payments | 49,249 | ||
Total minimum lease payments | 90,002 | 55,417 | |
Non-recourse notes payable | (34,977) | ||
Net credit exposure | 20,440 | ||
Lease Receivables [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 4,480 | 2,243 | |
Current | 1,754 | 2,287 | |
Billed | 6,234 | ||
Unbilled | 66,706 | ||
Total | 72,940 | ||
Unbilled minimum lease payments | 64,962 | ||
Total minimum lease payments | 76,700 | 69,492 | |
Unearned income | (8,412) | ||
Non-recourse notes payable | (38,516) | ||
Net credit exposure | 22,564 | ||
High CQR [Member] | Notes Receivable [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 1,614 | ||
Current | 2,878 | ||
Total | 77,841 | ||
Unbilled minimum lease payments | 29,057 | ||
Total minimum lease payments | 33,549 | ||
Non-recourse notes payable | (18,341) | ||
Net credit exposure | 15,208 | ||
High CQR [Member] | Lease Receivables [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 1,978 | ||
Current | 1,181 | ||
Total | 38,405 | ||
Unbilled minimum lease payments | 33,581 | ||
Total minimum lease payments | 36,740 | ||
Unearned income | (4,766) | ||
Non-recourse notes payable | (19,823) | ||
Net credit exposure | 12,151 | ||
Average CQR [Member] | Notes Receivable [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 326 | ||
Current | 1,135 | ||
Total | 11,775 | ||
Unbilled minimum lease payments | 19,995 | ||
Total minimum lease payments | 21,456 | ||
Non-recourse notes payable | (16,636) | ||
Net credit exposure | 4,820 | ||
Average CQR [Member] | Lease Receivables [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 265 | ||
Current | 1,106 | ||
Total | 34,535 | ||
Unbilled minimum lease payments | 31,381 | ||
Total minimum lease payments | 32,752 | ||
Unearned income | (3,646) | ||
Non-recourse notes payable | (18,693) | ||
Net credit exposure | 10,413 | ||
Low CQR [Member] | Notes Receivable [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 215 | ||
Current | 0 | ||
Total | 386 | ||
Unbilled minimum lease payments | 197 | ||
Total minimum lease payments | 412 | ||
Non-recourse notes payable | 0 | ||
Net credit exposure | 412 | ||
Low CQR [Member] | Lease Receivables [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 0 | ||
Current | 0 | ||
Total | 0 | ||
Unbilled minimum lease payments | 0 | ||
Total minimum lease payments | 0 | ||
Unearned income | 0 | ||
Non-recourse notes payable | 0 | ||
Net credit exposure | 0 | ||
31 to 60 Days Past Due [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 1,585 | ||
31 to 60 Days Past Due [Member] | Notes Receivable [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 925 | 1,535 | |
31 to 60 Days Past Due [Member] | Lease Receivables [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 660 | 997 | |
31 to 60 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 1,332 | ||
31 to 60 Days Past Due [Member] | High CQR [Member] | Lease Receivables [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 951 | ||
31 to 60 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 140 | ||
31 to 60 Days Past Due [Member] | Average CQR [Member] | Lease Receivables [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 46 | ||
31 to 60 Days Past Due [Member] | Low CQR [Member] | Notes Receivable [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 63 | ||
31 to 60 Days Past Due [Member] | Low CQR [Member] | Lease Receivables [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 0 | ||
61 to 90 Days Past Due [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 2,319 | ||
61 to 90 Days Past Due [Member] | Notes Receivable [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 270 | 46 | |
61 to 90 Days Past Due [Member] | Lease Receivables [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 2,049 | 212 | |
61 to 90 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 2 | ||
61 to 90 Days Past Due [Member] | High CQR [Member] | Lease Receivables [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 105 | ||
61 to 90 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 44 | ||
61 to 90 Days Past Due [Member] | Average CQR [Member] | Lease Receivables [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 107 | ||
61 to 90 Days Past Due [Member] | Low CQR [Member] | Notes Receivable [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 0 | ||
61 to 90 Days Past Due [Member] | Low CQR [Member] | Lease Receivables [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 0 | ||
Greater than 90 Days Past Due [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 2,594 | ||
Greater than 90 Days Past Due [Member] | Notes Receivable [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 823 | 574 | |
Greater than 90 Days Past Due [Member] | Lease Receivables [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | $ 1,771 | 1,034 | |
Greater than 90 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 280 | ||
Greater than 90 Days Past Due [Member] | High CQR [Member] | Lease Receivables [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 922 | ||
Greater than 90 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 142 | ||
Greater than 90 Days Past Due [Member] | Average CQR [Member] | Lease Receivables [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 112 | ||
Greater than 90 Days Past Due [Member] | Low CQR [Member] | Notes Receivable [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | 152 | ||
Greater than 90 Days Past Due [Member] | Low CQR [Member] | Lease Receivables [Member] | |||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | |||
Total past due | $ 0 | ||
[1] | Unguaranteed residual values of $12,644 thousand that we retained after selling the related lease receivable and initial direct costs of notes receivable of $364 thousand are excluded from amortized cost. |
PROPERTY, EQUIPMENT, OTHER AS_3
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Other current assets [Abstract] | ||
Deposits & funds held in escrow | $ 339 | $ 926 |
Prepaid assets | 7,640 | 7,946 |
Other | 254 | 384 |
Total other current assets | 8,233 | 9,256 |
Property, equipment and other assets [Abstract] | ||
Property and equipment, net | 7,258 | 7,153 |
Deferred costs - non-current | 12,568 | 10,957 |
Right-of-use assets | 11,069 | 13,066 |
Other | 3,419 | 1,420 |
Total | $ 34,314 | $ 32,596 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent |
Other current liabilities [Abstract] | ||
Accrued expenses | $ 10,639 | $ 10,024 |
Accrued income taxes payable | 3,021 | 406 |
Contingent consideration - current | 0 | 220 |
Short-term lease liability | 4,698 | 4,815 |
Other | 7,014 | 7,521 |
Total | $ 25,372 | $ 22,986 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
Other liabilities [Abstract] | ||
Deferred revenue | $ 19,074 | $ 16,693 |
Long-term lease liability | 6,590 | 8,326 |
Other | 7,278 | 2,708 |
Total | $ 32,942 | $ 27,727 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
CREDIT FACILITY AND NOTES PAY_2
CREDIT FACILITY AND NOTES PAYABLE (Details) $ in Thousands | Oct. 01, 2020USD ($) | May 15, 2020USD ($) | Sep. 30, 2020USD ($)Component | Mar. 31, 2020USD ($) |
Credit Facility [Abstract] | ||||
Maximum borrowing capacity under credit facility | $ 275,000 | |||
Recourse Notes Payable [Abstract] | ||||
Recourse notes payable-current | 2,286 | $ 37,256 | ||
Account Receivable Component [Member] | ||||
Credit Facility [Abstract] | ||||
Maximum borrowing capacity under credit facility | $ 275,000 | 100,000 | ||
Recourse Note Payable [Member] | ||||
Recourse Notes Payable [Abstract] | ||||
Recourse notes payable-current | $ 2,300 | $ 2,300 | ||
Weighted average interest rate of notes | 2.55% | 2.55% | ||
Non-Recourse Note Payable [Member] | ||||
Recourse Notes Payable [Abstract] | ||||
Weighted average interest rate of notes | 3.15% | 3.84% | ||
Non-recourse Notes Payable [Abstract] | ||||
Non-recourse notes payable | $ 38,100 | $ 35,500 | ||
WFCDF [Member] | ||||
Credit Facility [Abstract] | ||||
Number of components under credit facility | Component | 2 | |||
Guarantor obligations for credit facility, maximum | $ 10,500 | |||
Period of notice required to terminate credit facility at quarter end | 45 days | |||
Period of notice required to terminate credit facility at year end | 90 days | |||
WFCDF [Member] | Minimum [Member] | ||||
Credit Facility [Abstract] | ||||
Period of temporary increase of aggregate limit on credit facility | 30 days | |||
WFCDF [Member] | Maximum [Member] | ||||
Credit Facility [Abstract] | ||||
Aggregate period of temporary increase of aggregate limit on credit facility in a calendar year | 150 days | |||
WFCDF [Member] | Floor Plan Component [Member] | ||||
Credit Facility [Abstract] | ||||
Amount outstanding under credit facility | $ 219,000 | 127,400 | ||
WFCDF [Member] | Account Receivable Component [Member] | ||||
Credit Facility [Abstract] | ||||
Amount outstanding under credit facility | $ 0 | $ 35,000 | ||
Maximum borrowing capacity under credit facility | $ 100,000 | |||
Basis spread on reference rate | 2.00% | |||
WFCDF [Member] | Account Receivable Component [Member] | LIBOR [Member] | ||||
Credit Facility [Abstract] | ||||
Basis spread on reference rate | 0.75% | |||
Debt instrument term of variable rate | 1 month | |||
Election under WFCDF [Member] | ||||
Credit Facility [Abstract] | ||||
Maximum borrowing capacity under credit facility | $ 350,000 | |||
Election under WFCDF [Member] | Subsequent Event [Member] | ||||
Credit Facility [Abstract] | ||||
Maximum borrowing capacity under credit facility | $ 350,000 | |||
Election under WFCDF [Member] | Minimum [Member] | Subsequent Event [Member] | ||||
Credit Facility [Abstract] | ||||
Period of temporary increase of aggregate limit on credit facility | 30 days |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||||
Net earnings attributable to common shareholders - basic and diluted | $ 19,846 | $ 17,360 | $ 20,098 | $ 16,188 | $ 37,206 | $ 36,286 |
Basic and diluted common shares outstanding [Abstract] | ||||||
Weighted average common shares outstanding - basic (in shares) | 13,372 | 13,312 | 13,347 | 13,334 | ||
Effect of dilutive shares (in shares) | 19 | 38 | 47 | 74 | ||
Weighted average shares common outstanding - diluted (in shares) | 13,391 | 13,350 | 13,394 | 13,408 | ||
Earnings per common share - basic (in dollars per share) | $ 1.48 | $ 1.51 | $ 2.79 | $ 2.72 | ||
Earnings per common share - diluted (in dollars per share) | $ 1.48 | $ 1.51 | $ 2.78 | $ 2.71 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | May 20, 2020 | May 24, 2019 | |
STOCKHOLDERS' EQUITY [Abstract] | ||||
Authorized number of shares under stock repurchase program (in shares) | 500,000 | 500,000 | ||
Common stock repurchased during the period (in shares) | 24,318 | 149,044 | ||
Common stock repurchased during the period | $ 1.8 | $ 10.7 | ||
Shares repurchased to satisfy tax withholding obligation (in shares) | 37,640 | 41,817 | ||
Value of shares repurchased to satisfy tax withholding obligation | $ 2.7 | $ 3 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Additional Disclosures [Abstract] | ||
Vested share-based awards withheld to satisfy income tax obligations (in shares) | 37,640 | 41,817 |
Vested share-based awards withheld to satisfy income tax obligations | $ 2.7 | $ 3 |
Restricted Stock [Member] | ||
Number of Shares [Roll Forward] | ||
Nonvested at beginning of period (in shares) | 193,580 | |
Granted (in shares) | 99,182 | |
Vested (in shares) | (110,155) | |
Forfeited (in shares) | 0 | |
Nonvested at end of period (in shares) | 182,607 | |
Weighted Average Grant-date Fair Value [Roll Forward] | ||
Nonvested at beginning of period (in dollars per share) | $ 73.74 | |
Granted (in dollars per share) | 71.81 | |
Vested (in dollars per share) | 70 | |
Forfeited (in dollars per share) | 0 | |
Nonvested at end of period (in dollars per share) | $ 74.95 | |
2017 Director LTIP [Member] | Restricted Stock [Member] | ||
Number of Shares [Roll Forward] | ||
Granted (in shares) | 9,309 | 8,132 |
2012 Employee LTIP [Member] | Restricted Stock [Member] | ||
Number of Shares [Roll Forward] | ||
Granted (in shares) | 89,873 | 85,132 |
Additional Disclosures [Abstract] | ||
Vested share-based awards withheld to satisfy income tax obligations (in shares) | 37,640 | |
Vested share-based awards withheld to satisfy income tax obligations | $ 2.7 |
SHARE-BASED COMPENSATION, Compe
SHARE-BASED COMPENSATION, Compensation Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Compensation Expense [Abstract] | ||||
Share-based compensation expense | $ 1,800,000 | $ 2,100,000 | $ 3,648,000 | $ 4,054,000 |
401(k) Profit Sharing Plan [Abstract] | ||||
Contribution to profit sharing plan | 700,000 | $ 700,000 | 1,400,000 | $ 1,400,000 |
Restricted Stock [Member] | ||||
Compensation Expense [Abstract] | ||||
Unrecognized compensation expense | $ 11,600 | $ 11,600 | ||
Unrecognized compensation expense, period for recognition | 33 months |
INCOME TAXES (Details)
INCOME TAXES (Details) $ in Thousands | 6 Months Ended |
Sep. 30, 2020USD ($) | |
INCOME TAXES [Abstract] | |
Additions or reductions to gross unrecognized tax benefits | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Aug. 31, 2020 | Oct. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Assets [Abstract] | ||||||||
Money market funds | $ 45,132 | $ 45,132 | $ 128 | |||||
Liabilities [Abstract] | ||||||||
Contingent consideration | 220 | |||||||
Payments of contingent consideration | $ 219 | $ 9,600 | $ 500 | |||||
Adjustments to contingent consideration liabilities | 0 | $ 1,100 | 0 | $ 1,500 | ||||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||||||
Assets [Abstract] | ||||||||
Money market funds | 45,132 | 45,132 | 128 | |||||
Liabilities [Abstract] | ||||||||
Contingent consideration | 0 | |||||||
Significant Other Observable Inputs (Level 2) [Member] | ||||||||
Assets [Abstract] | ||||||||
Money market funds | 0 | 0 | 0 | |||||
Liabilities [Abstract] | ||||||||
Contingent consideration | 0 | |||||||
Significant Unobservable Inputs (Level 3) [Member] | ||||||||
Assets [Abstract] | ||||||||
Money market funds | $ 0 | $ 0 | 0 | |||||
Liabilities [Abstract] | ||||||||
Contingent consideration | $ 220 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | Aug. 23, 2019 | Dec. 31, 2019 | Sep. 30, 2020 | Mar. 31, 2020 |
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Goodwill | $ 118,177 | $ 118,097 | ||
ABS Technology [Member] | ||||
Business Combination [Abstract] | ||||
Cash portion of the acquisition | $ 13,800 | |||
Contingent consideration payable | $ 1,700 | |||
Repayment from acquiree | $ 200 | |||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Accounts receivable | 9,208 | |||
Other assets | 743 | |||
Identified intangible assets | 5,720 | |||
Accounts payable and other current liabilities | (6,715) | |||
Performance obligation | (1,140) | |||
Total identifiable net assets | 7,816 | |||
Goodwill | 7,461 | |||
Total purchase consideration | $ 15,277 | |||
ABS Technology [Member] | Customer Relationships [Member] | ||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Estimated useful lives | 7 years |
SEGMENT REPORTING, Reportable S
SEGMENT REPORTING, Reportable Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Segment | Sep. 30, 2019USD ($) | Mar. 31, 2020USD ($) | |
SEGMENT REPORTING [Abstract] | |||||
Number of business segments | Segment | 2 | ||||
Reportable Segment Information [Abstract] | |||||
Net sales | $ 433,081 | $ 411,565 | $ 788,112 | $ 792,937 | |
Cost of Sales [Abstract] | |||||
Cost of sales | 334,119 | 308,534 | 590,593 | 597,267 | |
Gross profit | 98,962 | 103,031 | 197,519 | 195,670 | |
Selling, general, and administrative | 66,889 | 70,523 | 136,356 | 136,310 | |
Depreciation and amortization | 3,341 | 3,557 | 6,857 | 7,020 | |
Interest and financing costs | 247 | 576 | 824 | 1,204 | |
Operating expenses | 70,477 | 74,656 | 144,037 | 144,534 | |
Operating income | 28,485 | 28,375 | 53,482 | 51,136 | |
Other income (expense) | 184 | (40) | 282 | (85) | |
Earnings before tax | 28,669 | 28,335 | 53,764 | 51,051 | |
Net Sales [Abstract] | |||||
Contracts with customers | 413,385 | 395,996 | 748,332 | 760,466 | |
Financing and other | 19,696 | 15,569 | 39,780 | 32,471 | |
Net sales | 433,081 | 411,565 | 788,112 | 792,937 | |
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||
Depreciation and amortization | 4,681 | 5,113 | 9,460 | 10,077 | |
Purchases of property, equipment and operating lease equipment | 990 | 3,370 | 3,267 | 4,888 | |
Selected Financial Data - Balance Sheet [Abstract] | |||||
Total assets | 1,038,711 | 914,266 | 1,038,711 | 914,266 | $ 909,113 |
Product [Member] | |||||
Reportable Segment Information [Abstract] | |||||
Net sales | 383,656 | 363,497 | 690,896 | 699,098 | |
Cost of Sales [Abstract] | |||||
Cost of sales | 302,963 | 278,863 | 529,597 | 538,926 | |
Net Sales [Abstract] | |||||
Net sales | 383,656 | 363,497 | 690,896 | 699,098 | |
Service [Member] | |||||
Reportable Segment Information [Abstract] | |||||
Net sales | 49,425 | 48,068 | 97,216 | 93,839 | |
Cost of Sales [Abstract] | |||||
Cost of sales | 31,156 | 29,671 | 60,996 | 58,341 | |
Net Sales [Abstract] | |||||
Net sales | 49,425 | 48,068 | 97,216 | 93,839 | |
Technology Segment [Member] | |||||
Reportable Segment Information [Abstract] | |||||
Net sales | 419,359 | 397,718 | 760,583 | 766,253 | |
Net Sales [Abstract] | |||||
Contracts with customers | 412,357 | 394,585 | 746,344 | 758,266 | |
Financing and other | 7,002 | 3,133 | 14,239 | 7,987 | |
Net sales | 419,359 | 397,718 | 760,583 | 766,253 | |
Operating Segments [Member] | Technology Segment [Member] | |||||
Reportable Segment Information [Abstract] | |||||
Net sales | 419,359 | 397,718 | 760,583 | 766,253 | |
Cost of Sales [Abstract] | |||||
Cost of sales | 332,162 | 306,146 | 586,545 | 592,870 | |
Gross profit | 87,197 | 91,572 | 174,038 | 173,383 | |
Selling, general, and administrative | 62,586 | 67,189 | 128,142 | 129,856 | |
Depreciation and amortization | 3,313 | 3,529 | 6,801 | 6,936 | |
Interest and financing costs | 1 | 0 | 266 | 0 | |
Operating expenses | 65,900 | 70,718 | 135,209 | 136,792 | |
Operating income | 21,297 | 20,854 | 38,829 | 36,591 | |
Net Sales [Abstract] | |||||
Contracts with customers | 412,357 | 394,585 | 746,344 | 758,266 | |
Financing and other | 7,002 | 3,133 | 14,239 | 7,987 | |
Net sales | 419,359 | 397,718 | 760,583 | 766,253 | |
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||
Depreciation and amortization | 3,499 | 3,658 | 7,133 | 7,283 | |
Purchases of property, equipment and operating lease equipment | 990 | 1,426 | 3,101 | 2,675 | |
Selected Financial Data - Balance Sheet [Abstract] | |||||
Total assets | 812,633 | 690,648 | 812,633 | 690,648 | |
Operating Segments [Member] | Technology Segment [Member] | Product [Member] | |||||
Reportable Segment Information [Abstract] | |||||
Net sales | 369,934 | 349,650 | 663,367 | 672,414 | |
Cost of Sales [Abstract] | |||||
Cost of sales | 301,006 | 276,475 | 525,549 | 534,529 | |
Net Sales [Abstract] | |||||
Net sales | 369,934 | 349,650 | 663,367 | 672,414 | |
Operating Segments [Member] | Technology Segment [Member] | Service [Member] | |||||
Reportable Segment Information [Abstract] | |||||
Net sales | 49,425 | 48,068 | 97,216 | 93,839 | |
Cost of Sales [Abstract] | |||||
Cost of sales | 31,156 | 29,671 | 60,996 | 58,341 | |
Net Sales [Abstract] | |||||
Net sales | 49,425 | 48,068 | 97,216 | 93,839 | |
Operating Segments [Member] | Financing Segment [Member] | |||||
Reportable Segment Information [Abstract] | |||||
Net sales | 13,722 | 13,847 | 27,529 | 26,684 | |
Cost of Sales [Abstract] | |||||
Cost of sales | 1,957 | 2,388 | 4,048 | 4,397 | |
Gross profit | 11,765 | 11,459 | 23,481 | 22,287 | |
Selling, general, and administrative | 4,303 | 3,334 | 8,214 | 6,454 | |
Depreciation and amortization | 28 | 28 | 56 | 84 | |
Interest and financing costs | 246 | 576 | 558 | 1,204 | |
Operating expenses | 4,577 | 3,938 | 8,828 | 7,742 | |
Operating income | 7,188 | 7,521 | 14,653 | 14,545 | |
Net Sales [Abstract] | |||||
Contracts with customers | 1,028 | 1,411 | 1,988 | 2,200 | |
Financing and other | 12,694 | 12,436 | 25,541 | 24,484 | |
Net sales | 13,722 | 13,847 | 27,529 | 26,684 | |
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||
Depreciation and amortization | 1,182 | 1,455 | 2,327 | 2,794 | |
Purchases of property, equipment and operating lease equipment | 0 | 1,944 | 166 | 2,213 | |
Selected Financial Data - Balance Sheet [Abstract] | |||||
Total assets | 226,078 | 223,618 | 226,078 | 223,618 | |
Operating Segments [Member] | Financing Segment [Member] | Product [Member] | |||||
Reportable Segment Information [Abstract] | |||||
Net sales | 13,722 | 13,847 | 27,529 | 26,684 | |
Cost of Sales [Abstract] | |||||
Cost of sales | 1,957 | 2,388 | 4,048 | 4,397 | |
Net Sales [Abstract] | |||||
Net sales | 13,722 | 13,847 | 27,529 | 26,684 | |
Operating Segments [Member] | Financing Segment [Member] | Service [Member] | |||||
Reportable Segment Information [Abstract] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Cost of Sales [Abstract] | |||||
Cost of sales | 0 | 0 | 0 | 0 | |
Net Sales [Abstract] | |||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
SEGMENT REPORTING, Technology S
SEGMENT REPORTING, Technology Segment Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Abstract] | ||||
Net sales | $ 433,081 | $ 411,565 | $ 788,112 | $ 792,937 |
Less: Revenue from financing and other | (19,696) | (15,569) | (39,780) | (32,471) |
Revenue from contracts with customers | 413,385 | 395,996 | 748,332 | 760,466 |
Technology Segment [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 419,359 | 397,718 | 760,583 | 766,253 |
Less: Revenue from financing and other | (7,002) | (3,133) | (14,239) | (7,987) |
Revenue from contracts with customers | 412,357 | 394,585 | 746,344 | 758,266 |
Technology Segment [Member] | Technology [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 76,321 | 97,502 | 146,288 | 173,682 |
Technology Segment [Member] | Telecom, Media & Entertainment [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 96,927 | 71,044 | 153,579 | 133,510 |
Technology Segment [Member] | Financial Services [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 46,732 | 44,605 | 94,153 | 92,847 |
Technology Segment [Member] | State and Local Government and Educational Institutions [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 76,492 | 71,866 | 147,055 | 143,057 |
Technology Segment [Member] | Health Care [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 59,252 | 59,818 | 105,788 | 115,926 |
Technology Segment [Member] | All others [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 63,635 | 52,883 | 113,720 | 107,231 |
Technology Segment [Member] | Cisco Systems [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 173,166 | 172,605 | 301,098 | 318,786 |
Technology Segment [Member] | NetApp [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 9,914 | 9,771 | 25,335 | 23,198 |
Technology Segment [Member] | HP Inc. & HPE [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 16,395 | 18,986 | 33,433 | 42,099 |
Technology Segment [Member] | Dell / EMC [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 15,349 | 12,494 | 46,430 | 26,275 |
Technology Segment [Member] | Arista Networks [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 13,443 | 26,766 | 20,263 | 47,716 |
Technology Segment [Member] | Juniper Networks [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 24,716 | 24,370 | 38,295 | 31,424 |
Technology Segment [Member] | All others [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | $ 166,376 | $ 132,726 | $ 295,729 | $ 276,755 |