Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2016 | Jan. 31, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | EPLUS INC | |
Entity Central Index Key | 1,022,408 | |
Current Fiscal Year End Date | --03-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,080,655 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2016 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 69,677 | $ 94,766 |
Accounts receivable-trade, net | 297,460 | 234,628 |
Accounts receivable-other, net | 34,183 | 41,771 |
Inventories-net | 111,076 | 33,343 |
Financing receivables-net, current | 65,945 | 56,448 |
Deferred costs | 6,418 | 6,371 |
Other current assets | 4,035 | 10,649 |
Total current assets | 588,794 | 477,976 |
Financing receivables and operating leases - net | 74,490 | 75,906 |
Property, equipment and other assets | 11,704 | 8,644 |
Goodwill and other intangible assets - net | 61,690 | 54,154 |
TOTAL ASSETS | 736,678 | 616,680 |
Current liabilities: | ||
Accounts payable | 121,562 | 76,780 |
Accounts payable-floor plan | 120,854 | 121,893 |
Salaries and commissions payable | 17,412 | 14,981 |
Deferred revenue | 63,665 | 18,344 |
Recourse notes payable - current | 1,605 | 2,288 |
Non-recourse notes payable - current | 41,785 | 26,042 |
Other current liabilities | 15,842 | 13,118 |
Total current liabilities | 382,725 | 273,446 |
Recourse notes payable - long term | 0 | 1,054 |
Non-recourse notes payable - long term | 10,608 | 18,038 |
Deferred tax liability - net | 3,075 | 3,001 |
Other liabilities | 6,475 | 2,263 |
TOTAL LIABILITIES | 402,883 | 297,802 |
COMMITMENTS AND CONTINGENCIES (Note 8) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $.01 per share par value; 2,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $.01 per share par value; 25,000 shares authorized; 13,310 issued and 7,080 outstanding at December 31, 2016 and 13,237 issued and 7,365 outstanding at March 31, 2016 | 133 | 132 |
Additional paid-in capital | 122,031 | 117,511 |
Treasury stock, at cost, 6,230 and 5,872 shares at December 31, 2016 and March 31, 2016, respectively | (158,948) | (129,518) |
Retained earnings | 371,290 | 331,224 |
Accumulated other comprehensive income - foreign currency translation adjustment | (711) | (471) |
Total Stockholders' Equity | 333,795 | 318,878 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 736,678 | $ 616,680 |
UNAUDITED CONDENSED CONSOLIDAT3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
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 issued (in shares) | 0 | 0 |
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 issued (in shares) | 13,310 | 13,237 |
Common stock, shares outstanding (in shares) | 7,080 | 7,365 |
Treasury stock, shares (in shares) | 6,230 | 5,872 |
UNAUDITED CONDENSED CONSOLIDAT4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||||
Net sales | $ 326,657 | $ 298,644 | $ 996,622 | $ 904,796 |
Cost of sales | 252,871 | 234,584 | 773,239 | 709,685 |
Gross profit | 73,786 | 64,060 | 223,383 | 195,111 |
Professional and other fees | 1,397 | 1,882 | 4,918 | 4,913 |
Salaries and benefits | 42,385 | 37,372 | 124,479 | 108,326 |
General and administrative expenses | 6,378 | 5,434 | 20,424 | 17,390 |
Depreciation and amortization | 1,910 | 1,331 | 5,408 | 3,739 |
Interest and financing costs | 409 | 396 | 1,158 | 1,371 |
Operating expenses | 52,479 | 46,415 | 156,387 | 135,739 |
Operating income | 21,307 | 17,645 | 66,996 | 59,372 |
Other income | 0 | 0 | 380 | 0 |
Earnings before tax | 21,307 | 17,645 | 67,376 | 59,372 |
Provision for income taxes | 8,687 | 7,348 | 27,310 | 24,582 |
Net earnings | $ 12,620 | $ 10,297 | $ 40,066 | $ 34,790 |
Net earnings per common share-basic (in dollars per share) | $ 1.83 | $ 1.41 | $ 5.77 | $ 4.79 |
Net earnings per common share-diluted (in dollars per share) | $ 1.81 | $ 1.40 | $ 5.71 | $ 4.74 |
Weighted average common shares outstanding-basic (in shares) | 6,896 | 7,280 | 6,946 | 7,260 |
Weighted average common shares outstanding-diluted (in shares) | 6,960 | 7,329 | 7,013 | 7,336 |
UNAUDITED CONDENSED CONSOLIDAT5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
NET EARNINGS | $ 12,620 | $ 10,297 | $ 40,066 | $ 34,790 |
OTHER COMPREHENSIVE INCOME, NET OF TAX: | ||||
Foreign currency translation adjustments | (145) | (139) | (240) | (273) |
Other comprehensive income (loss) | (145) | (139) | (240) | (273) |
TOTAL COMPREHENSIVE INCOME | $ 12,475 | $ 10,158 | $ 39,826 | $ 34,517 |
UNAUDITED CONDENSED CONSOLIDAT6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows From Operating Activities: | ||
Net earnings | $ 40,066 | $ 34,790 |
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 8,758 | 13,020 |
Reserve for credit losses, inventory obsolescence and sales returns | 926 | (91) |
Share-based compensation expense | 4,520 | 4,210 |
Deferred taxes | 89 | 0 |
Payments from lessees directly to lenders-operating leases | (1,831) | (3,587) |
Gain on disposal of property, equipment and operating lease equipment | (3,742) | (2,621) |
Gain on sale of financing receivables | (3,968) | (5,439) |
Other | 227 | 224 |
Changes in: | ||
Accounts receivable - trade | (57,732) | (31,692) |
Accounts receivable - other | (4,232) | (1,176) |
Inventories | (77,422) | (5,643) |
Financing receivables - net | 17,797 | (10,670) |
Deferred costs, other intangible assets and other assets | 1,838 | 5,888 |
Accounts payable | 53,208 | (5,912) |
Salaries and commissions payable, deferred revenue and other liabilities | 51,200 | (9,018) |
Net provided by (cash used) in operating activities | 29,702 | (17,717) |
Cash Flows From Investing Activities: | ||
Proceeds from sale of property, equipment and operating lease equipment | 6,380 | 5,349 |
Purchases of property, equipment and operating lease equipment | (7,300) | (17,008) |
Purchases of assets to be leased or financed | (5,897) | (10,828) |
Issuance of financing receivables | (114,671) | (102,612) |
Repayments of financing receivables | 44,091 | 49,230 |
Proceeds from sale of financing receivables | 39,857 | 48,174 |
Cash used in acquisitions, net of cash acquired | (9,500) | (16,649) |
Net cash used in investing activities | (47,040) | (44,344) |
Cash Flows From Financing Activities: | ||
Borrowings of non-recourse and recourse notes payable | 34,020 | 27,865 |
Repayments of non-recourse and recourse notes payable | (5,412) | (254) |
Repurchase of common stock | (30,493) | (2,475) |
Dividends paid | 0 | (80) |
Payments of contingent consideration | (718) | (1,158) |
Net borrowings (repayments) on floor plan facility | (5,602) | 28,581 |
Net cash provided by (used in) financing activities | (8,205) | 52,479 |
Effect of exchange rate changes on cash | 454 | (26) |
Net Decrease in Cash and Cash Equivalents | (25,089) | (9,608) |
Cash and Cash Equivalents, Beginning of Period | 94,766 | 76,175 |
Cash and Cash Equivalents, End of Period | 69,677 | 66,567 |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for interest | 38 | 65 |
Cash paid for income taxes | 23,381 | 26,463 |
Investing Activities | ||
Proceeds from sale of property, equipment, and operating lease equipment | 429 | 7,993 |
Purchase of property, equipment, and operating lease equipment | (2,442) | (11,985) |
Purchase of assets to be leased or financed | (12,700) | (8,554) |
Issuance of financing receivables | (110,120) | (91,022) |
Repayment of financing receivables | 16,454 | 12,357 |
Proceeds from sale of financing receivables | 104,430 | 75,584 |
Financing Activities | ||
Borrowing of non-recourse and recourse notes payable | 33,651 | 42,840 |
Repayments of non-recourse and recourse notes payable | (20,438) | (22,292) |
Vesting of share-based compensation | $ 7,982 | $ 7,743 |
UNAUDITED CONDENSED CONSOLIDAT7
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 9 months ended Dec. 31, 2016 - 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, 2016 | $ 132 | $ 117,511 | $ (129,518) | $ 331,224 | $ (471) | $ 318,878 |
Balance (in shares) at Mar. 31, 2016 | 7,365 | 7,365 | ||||
Issuance of restricted stock awards | $ 1 | 0 | 0 | 0 | 0 | $ 1 |
Issuance of restricted stock awards (in shares) | 73 | |||||
Share-based compensation | $ 0 | 4,520 | 0 | 0 | 0 | 4,520 |
Share-based compensation (in shares) | 0 | |||||
Repurchase of common stock | $ 0 | 0 | (29,430) | 0 | 0 | (29,430) |
Repurchase of common stock (in shares) | (358) | |||||
Net earnings | $ 0 | 0 | 0 | 40,066 | 0 | 40,066 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (240) | (240) |
Balance at Dec. 31, 2016 | $ 133 | $ 122,031 | $ (158,948) | $ 371,290 | $ (711) | $ 333,795 |
Balance (in shares) at Dec. 31, 2016 | 7,080 | 7,080 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2016 | |
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 company was founded in 1990 and is a Delaware corporation. ePlus inc. is sometimes referred to in this Quarterly Report on Form 10-Q as "we," "our," "us," "ourselves," or "ePlus." ePlus inc. is a holding company that through its subsidiaries provides information technology solutions which enable organizations to optimize their IT environment and supply chain processes. We also provide consulting, professional and managed services and complete lifecycle management services including flexible financing solutions. We focus on middle market and large enterprises in North America and the United Kingdom. BASIS OF PRESENTATION — The consolidated financial statements include the accounts of ePlus inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The accounts of businesses acquired are included in the consolidated financial statements from the dates of acquisition. INTERIM FINANCIAL STATEMENTS — The unaudited condensed consolidated financial statements for the three and nine months ended December 31, 2016 and 2015 were prepared by us, without audit, 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 three and nine months ended December 31, 2016 and 2015 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending March 31, 2017 or any other future period. These unaudited condensed consolidated financial statements do not include all disclosures required by the accounting principles generally accepted in the United States (“U.S. 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, 2016 (“2016 Financial Statements”), which should be read in conjunction with these interim condensed consolidated financial statements. USE OF ESTIMATES — The notes to the consolidated financial statements contained in the 2016 Financial Statements include additional discussion of the significant accounting policies and estimates used in the preparation of our consolidated financial statements. There have been no material changes to our significant accounting policies and estimates during the nine months ended December 31, 2016. DEFERRED COSTS AND DEFERRED REVENUES — Deferred costs include internal and third party costs associated with deferred revenue arrangements. Deferred revenue includes payments received from customers in advance of delivering equipment and software or performing professional, managed and hosting services and amounts deferred when any of the other revenue recognition criteria have not been met. At December 31, 2016, total deferred costs and revenues were $9.4 million and $67.3 million, respectively, compared to $8.2 million and $20.2 million, respectively, as of March 31, 2016. The increase in deferred revenue is primarily due to prepayments by a customer for equipment that we expect to deliver in the next three to six months. CONCENTRATIONS OF RISK — A substantial portion of our sales of product and services are from sales of Cisco Systems, Hewlett Packard Enterprise (“HPE”), and NetApp products, which represented approximately 45%, 6% and 6% and 49%, 6% and 5%, respectively, for the three and nine months ended December 31, 2016. Sales of Cisco Systems, Hewlett Packard (“HP”), and NetApp products represented approximately 48%, 6%, and 7%, and 49%, 8%, and 5%, respectively, for the three and nine months ended December 31, 2015. Any changes in our vendors’ ability to provide products or incentive programs could have a material adverse effect on our business, results of operations and financial condition. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Dec. 31, 2016 | |
RECENTLY ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENT ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS — In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Stock Compensation RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED — In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Principal versus Agent Considerations Identifying Performance Obligations and Licensing Narrow-Scope Improvements and Practical Expedients Technical Corrections and Improvements to Topic 606 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In February 2016, the FASB issued ASU 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
FINANCING RECEIVABLES AND OPERA
FINANCING RECEIVABLES AND OPERATING LEASES | 9 Months Ended |
Dec. 31, 2016 | |
FINANCING RECEIVABLES AND OPERATING LEASES [Abstract] | |
FINANCING RECEIVABLES AND OPERATING LEASES | 3. FINANCING RECEIVABLES AND OPERATING LEASES Our financing receivables and operating leases consist of assets that we finance for our customers, which we manage as a portfolio of investments. Equipment financed for our customers is accounted for as investments in direct financing, sales-type or operating leases in accordance with Accounting Standards Codification (“ASC”) Topic 840, Leases FINANCING RECEIVABLES—NET Our financing receivables, net consist of the following (in thousands): December 31, 2016 Notes Receivables Lease-Related Receivables Total Financing Receivables Minimum payments $ 53,167 $ 71,343 $ 124,510 Estimated unguaranteed residual value (1) - 18,069 18,069 Initial direct costs, net of amortization (2) 465 518 983 Unearned income - (7,017 ) (7,017 ) Reserve for credit losses (3) (3,508 ) (778 ) (4,286 ) Total, net $ 50,124 $ 82,135 $ 132,259 Reported as: Current $ 32,269 $ 33,676 $ 65,945 Long-term 17,855 48,459 66,314 Total, net $ 50,124 $ 82,135 $ 132,259 (1) Includes estimated unguaranteed residual values of $11,932 thousand for direct financing leases, which have been sold and accounted for as sales. (2) Initial direct costs are shown net of amortization of $665 thousand. (3) For details on reserve for credit losses, refer to Note 5, “Reserves for Credit Losses.” March 31, 2016 Notes Receivables Lease-Related Receivables Total Financing Receivables Minimum payments $ 44,442 $ 66,303 $ 110,745 Estimated unguaranteed residual value (1) - 12,693 12,693 Initial direct costs, net of amortization (2) 312 475 787 Unearned income - (5,543 ) (5,543 ) Reserve for credit losses (3) (3,381 ) (685 ) (4,066 ) Total, net $ 41,373 $ 73,243 $ 114,616 Reported as: Current $ 24,962 $ 31,486 $ 56,448 Long-term 16,411 41,757 58,168 Total, net $ 41,373 $ 73,243 $ 114,616 (1) Includes estimated unguaranteed residual values of $6,722 thousand for direct financing leases which have been sold and accounted for as sales. (2) Initial direct costs are shown net of amortization of $612 thousand. (3) For details on reserve for credit losses, refer to Note 5, “Reserves for Credit Losses.” OPERATING LEASES—NET Operating leases—net represents leases that do not qualify as direct financing leases. The components of the operating leases—net are as follows (in thousands): December 31, 2016 March 31, 2016 Cost of equipment under operating leases $ 17,062 $ 36,635 Accumulated depreciation (8,886 ) (18,897 ) Investment in operating lease equipment—net (1) $ 8,176 $ 17,738 (1) These totals include estimated unguaranteed residual values of $928 thousand and $3,417 thousand as of December 31, 2016 and March 31, 2016, respectively. 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 in accordance with Codification Topic 860, Transfers and Servicing For transfers accounted for as sales, we derecognize the carrying value of the asset transferred 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 December 31, 2016 and 2015, we recognized net gains of $0.9 million and $1.4 million, respectively, and total proceeds from these sales were $55.8 million and $54.1 million, respectively. During the nine months ended December 31, 2016 and 2015, we recognized net gains of $4.1 million and $5.4 million, respectively. The total proceeds from these sales were $185.4 million and $162.7 million for the nine months ended December 31, 2016 and 2015, respectively. For certain assignments of financial assets, we retain a servicing obligation. For assignments accounted for as sales, we allocate a portion of the proceeds to deferred revenues, which is recognized as we perform the services. In a limited number of such sales, we indemnified the assignee in the event that the lessee elected to early terminate the lease. As of December 31, 2016, our maximum potential future payments related to such guarantees is $1.2 million. We believe the possibility of making any payments to be remote. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Dec. 31, 2016 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 4. GOODWILL AND OTHER INTANGIBLE ASSETS Our goodwill and other intangible assets consist of the following (in thousands): December 31, 2016 March 31, 2016 Gross Carrying Amount Accumulated Amortization / Impairment Loss Net Carrying Amount Gross Carrying Amount Accumulated Amortization / Impairment Loss Net Carrying Amount Goodwill $ 58,145 $ (8,673 ) $ 49,472 $ 50,824 $ (8,673 ) $ 42,151 Customer relationships & other intangibles 22,818 (11,640 ) 11,178 20,401 (9,193 ) 11,208 Capitalized software development 3,247 (2,207 ) 1,040 2,709 (1,914 ) 795 Total $ 84,210 $ (22,520 ) $ 61,690 $ 73,934 $ (19,780 ) $ 54,154 GOODWILL 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. All of our goodwill as of December 31, 2016 and March 31, 2016 is related to our technology reportable segment, which we also determined to be one reporting unit. Goodwill increased by $7.3 million from March 31, 2016 to December 31, 2016 due to the addition of $7.6 million from our acquisition of certain assets and assumption of certain liabilities of the IT Services equipment and integration business of Consolidated Communications Holdings, Inc. (“Consolidated IT Services”) in December, 2016, partially offset by $0.3 million due to foreign currency translation. See Note 15, “Business Combinations” for additional information. We performed our annual test for impairment for fiscal year 2017 as of October 1, 2016. We elected to bypass the qualitative assessment of goodwill and estimate the fair value of our reporting units. The fair value of our technology reporting unit substantially exceeded its carrying value as of October 1, 2016. Our conclusions would not be impacted by a ten percent change in our estimate of the fair value of the reporting unit. We performed our annual test for impairment for fiscal year 2016 as of October 1, 2015. We performed a qualitative assessment for goodwill and concluded that the fair value of our reporting units, more likely than not, exceeded their respective carrying values as of October 1, 2015. OTHER INTANGIBLE ASSETS Customer relationships and capitalized software development costs are amortized over an estimated useful life, which is generally between 3 to 7 years. Total amortization expense for other intangible assets was $1.1 million and $0.8 million for the three months and $3.4 million and $2.1 million for the nine months ended December 31, 2016 and 2015, respectively. |
RESERVES FOR CREDIT LOSSES
RESERVES FOR CREDIT LOSSES | 9 Months Ended |
Dec. 31, 2016 | |
RESERVES FOR CREDIT LOSSES [Abstract] | |
RESERVES FOR CREDIT LOSSES | 5. RESERVES FOR CREDIT LOSSES Activity in our reserves for credit losses for the nine months ended December 31, 2016 and 2015 were as follows (in thousands): Accounts Receivable Notes Receivable Lease-Related Receivables Total Balance April 1, 2016 $ 1,127 $ 3,381 $ 685 $ 5,193 Provision for credit losses 229 139 93 461 Write-offs and other (32 ) (12 ) - (44 ) Balance December 31, 2016 $ 1,324 $ 3,508 $ 778 $ 5,610 Accounts Receivable Notes Receivable Lease-Related Receivables Total Balance April 1, 2015 $ 1,169 $ 3,573 $ 881 $ 5,623 Provision for credit losses 12 7 (50 ) (31 ) Write-offs and other (119 ) - - (119 ) Balance December 31, 2015 $ 1,062 $ 3,580 $ 831 $ 5,473 Our reserves for credit losses and minimum payments associated with our notes receivables and lease-related receivables disaggregated on the basis of our impairment method were as follows (in thousands): December 31, 2016 March 31, 2016 Notes Receivable Lease- Related Receivables Notes Receivable Lease- Related Receivables Reserves for credit losses: Ending balance: collectively evaluated for impairment $ 406 $ 655 $ 279 $ 562 Ending balance: individually evaluated for impairment 3,102 123 3,102 123 Ending balance $ 3,508 $ 778 $ 3,381 $ 685 Minimum payments: Ending balance: collectively evaluated for impairment $ 50,016 $ 71,201 $ 41,340 $ 66,161 Ending balance: individually evaluated for impairment 3,151 142 3,102 142 Ending balance $ 53,167 $ 71,343 $ 44,442 $ 66,303 As of December 31, 2016 and March 31, 2016 we had a balance outstanding of $3.2 million for a customer in bankruptcy which is in a non-accrual status. We place receivables on non-accrual status when events, such as a customer’s declaring bankruptcy, occur that indicate a receivable will not be collectable. We charge off uncollectable financing receivables when we stop pursuing collection. The age of the recorded minimum lease payments and net credit exposure associated with our investment in direct financing and sales-type leases that are past due disaggregated based on our internally assigned credit quality rating (“CQR”) were as follows as of December 31, 2016 and March 31, 2016 (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 December 31, 2016 High CQR $ 163 $ 49 $ 98 $ 310 $ 137 $ 45,570 $ 46,017 $ (3,466 ) $ (21,532 ) $ 21,019 Average CQR 44 25 96 165 43 24,976 25,184 (1,667 ) (12,684 ) 10,833 Low CQR - - 142 142 - - 142 (19 ) - 123 Total $ 207 $ 74 $ 336 $ 617 $ 180 $ 70,546 $ 71,343 $ (5,152 ) $ (34,216 ) $ 31,975 March 31, 2016 High CQR $ 575 $ 52 $ 94 $ 721 $ 984 $ 46,157 $ 47,862 $ (2,705 ) $ (22,914 ) $ 22,243 Average CQR 15 17 78 110 159 18,030 18,299 (1,387 ) (8,714 ) 8,198 Low CQR - - 142 142 - - 142 (19 ) - 123 Total $ 590 $ 69 $ 314 $ 973 $ 1,143 $ 64,187 $ 66,303 $ (4,111 ) $ (31,628 ) $ 30,564 The age of the recorded notes receivable balance disaggregated based on our internally assigned CQR were as follows as December 31, 2016 and March 31, 2016 (in thousands): 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Current Unbilled Notes Receivable Total Notes Receivable Non- Recourse Notes Payable Net Credit Exposure December 31, 2016 High CQR $ 1,369 $ 312 $ 827 $ 2,508 $ 1,244 $ 28,206 $ 31,958 $ (15,330 ) $ 16,628 Average CQR 157 10 - 167 920 16,971 18,058 (12,640 ) 5,418 Low CQR - - 3,151 3,151 - - 3,151 - 3,151 Total $ 1,526 $ 322 $ 3,978 $ 5,826 $ 2,164 $ 45,177 $ 53,167 $ (27,970 ) $ 25,197 March 31, 2016 High CQR $ 399 $ 305 $ 2,168 $ 2,872 $ 301 $ 24,092 $ 27,265 $ (11,644 ) $ 15,621 Average CQR - - - - 202 13,873 14,075 (9,942 ) 4,133 Low CQR - - 3,102 3,102 - - 3,102 - 3,102 Total $ 399 $ 305 $ 5,270 $ 5,974 $ 503 $ 37,965 $ 44,442 $ (21,586 ) $ 22,856 We estimate losses on our net credit exposure to be between 0% - 5% for customers with highest CQR, as these customers are investment grade or the equivalent of investment grade. We estimate losses on our net credit exposure to be between 2% - 15% for customers with average CQR, and between 15% - 100% for customers with low CQR, which includes customers in bankruptcy. |
PROPERTY, EQUIPMENT, OTHER ASSE
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES | 9 Months Ended |
Dec. 31, 2016 | |
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES [Abstract] | |
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES | 6. PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES Our property, equipment, other assets and liabilities consist of the following (in thousands): December 31, 2016 March 31, 2016 Other current assets: Deposits & funds held in escrow $ 485 $ 3,116 Prepaid assets 2,773 6,683 Other 777 850 Total other current assets $ 4,035 $ 10,649 Other assets: Deferred costs $ 2,979 $ 1,831 Property and equipment, net 6,945 6,266 Other 1,780 547 Total other assets - long term $ 11,704 $ 8,644 December 31, March 31, Other current liabilities: Accrued expenses $ 6,969 $ 7,109 Accrued income taxes payable 1,093 - Other 7,780 6,009 Total other current liabilities $ 15,842 $ 13,118 Other liabilities: Deferred revenue $ 3,599 $ 1,866 Other 2,876 397 Total other liabilities - long term $ 6,475 $ 2,263 |
NOTES PAYABLE AND CREDIT FACILI
NOTES PAYABLE AND CREDIT FACILITY | 9 Months Ended |
Dec. 31, 2016 | |
NOTES PAYABLE AND CREDIT FACILITY [Abstract] | |
NOTES PAYABLE AND CREDIT FACILITY | 7. NOTES PAYABLE AND CREDIT FACILITY Non-recourse and recourse obligations consist of the following (in thousands): December 31, March 31, Recourse notes payable with interest rates ranging from 2.75% and 4.13% at December 31, 2016 and ranging from 2.70% and 4.13%at March 31, 2016. Current $ 1,605 $ 2,288 Long-term - 1,054 Total recourse notes payable $ 1,605 $ 3,342 Non-recourse notes payable secured by financing receivables and investments in operating leases with interest rates ranging from 2.0% to 7.50% at December 31, 2016 and ranging from 1.70% to 8.50% as of March 31, 2016. Current $ 41,785 $ 26,042 Long-term 10,608 18,038 Total non-recourse notes payable $ 52,393 $ 44,080 Principal and interest payments on non-recourse notes payable 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 and 3.13%, as of December 31, 2016 and March 31, 2016, respectively. The weighted average interest rate for our recourse notes payable was 3.24%, as of December 31, 2016 and March 31, 2016. Under recourse financing, in the event of a default by a customer, the lender has recourse to the customer, the assets serving as collateral, and us. Under non-recourse financing, 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. Our technology segment, through our subsidiary e As of December 31, 2016, the facility agreement had an aggregate limit of the two components of $250 million, and the accounts receivable component had a sub-limit of $30 million, which bears interest assessed at a rate of the One Month LIBOR plus two and one half percent. The credit facility has full recourse to e e e e e e The facility provided by WFCDF requires a guaranty of $10.5 million by e e Fair Value As of December 31, 2016 and March 31, 2016, the fair value of our long-term recourse and non-recourse notes payable approximated their carrying value. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 2016 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 8. COMMITMENTS AND CONTINGENCIES Legal Proceedings We are not currently a party to any legal proceedings with loss contingencies that are expected to be material. From time to time, we may be or have been a plaintiff, or may be or have been named as a defendant, in legal actions arising from our normal business activities, none of which has had a material effect on our business, results of operations or financial condition. Legal proceedings which may arise in the ordinary course of business including preference payment claims asserted in customer bankruptcy proceedings, tax audits, claims of alleged infringement of patents, trademarks, copyrights and other intellectual property rights, claims of alleged non-compliance with contract provisions, employment-related claims, claims by competitors, vendors or customers, claims related to alleged violations of laws and regulations, and claims relating to alleged security or privacy breaches. We attempt to ameliorate the effect of potential litigation through insurance coverage and contractual protections such as rights to indemnifications and limitations of liability. We do not expect that the outcome in any of these matters, individually or collectively, will have a material adverse effect on our financial condition or results of operations, however, litigation is inherently unpredictable. Therefore, judgments could be rendered or settlements entered that could adversely affect our results of operations or cash flows in a particular period. We provide for costs related to contingencies when a loss is probable and the amount is reasonably determinable. During the nine months ended December 31, 2016, we received $380 thousand related to the dynamic random access memory (“DRAM”) class action lawsuit, which claimed that manufacturers fixed the price for DRAM, which was included within other income on our unaudited consolidated statement of operations. Contingencies Related to Third-Party Review From time to time, we are subject to potential claims and assessments from third parties. We are also subject to various governmental, customer and partner audits. We continually assess whether or not such claims have merit and warrant accrual. Where appropriate, we accrue estimates of anticipated liabilities in our consolidated financial statements. Such estimates are subject to change and may affect our results of operations and our cash flows. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Dec. 31, 2016 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 9. 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 consolidated statements of operations for the three and nine months ended December 31, 2016 and 2015 (in thousands, except per share data): Three Months Ended Nine Months Ended December 31, 2016 2015 2016 2015 Net earnings attributable to common shareholders - basic and diluted $ 12,620 $ 10,297 $ 40,066 $ 34,790 Basic and diluted common shares outstanding: Weighted average common shares outstanding — basic 6,896 7,280 6,946 7,260 Effect of dilutive shares 64 49 67 76 Weighted average shares common outstanding — diluted 6,960 7,329 7,013 7,336 Earnings per common share - basic $ 1.83 $ 1.41 $ 5.77 $ 4.79 Earnings per common share - diluted $ 1.81 $ 1.40 $ 5.71 $ 4.74 Stock Split On February 2, 2017, our Board of Directors declared a two-for-one stock split effected in the form of a stock dividend. The share distribution will occur March 31, 2017. All references made to share or per share amounts in the accompanying unaudited condensed consolidated financial statements and applicable disclosures are presented on a pre-split basis. As a result of the stock split, all historical per share data and number of shares outstanding presented in future financial statements will be retroactively adjusted. The following table provides pro forma earnings per share, giving retroactive effect to the stock split (in thousands, except per share data): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Earnings per common share: Basic — pro forma $ 0.92 $ 0.71 $ 2.88 $ 2.40 Diluted — pro forma $ 0.91 $ 0.70 $ 2.86 $ 2.37 Weighted average common shares outstanding: Basic — pro forma 13,791 14,561 13,891 14,519 Diluted — pro forma 13,920 14,659 14,026 14,672 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Dec. 31, 2016 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY | 10. STOCKHOLDERS’ EQUITY On August 18, 2016, 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 nine months ended December 31, 2016, we purchased 328,481 shares of our outstanding common stock at an average cost of $81.62 per share for a total purchase price of $26.8 million under the share repurchase plan. We also purchased 29,736 shares of common stock at a value of $2.6 million to satisfy tax withholding obligations relating to the vesting of employees’ restricted stock. During the nine months ended December 31, 2015, we did not purchase any shares of our outstanding common stock under the share repurchase plan; however, we did purchase 30,447 shares of common stock at a value of $2.5 million to satisfy tax withholding obligations relating to the vesting of employees’ restricted stock. Since the inception of our initial repurchase program on September 20, 2001 to December 31, 2016, we have repurchased approximately 6.0 million shares of our outstanding common stock at an average cost of $24.44 per share for a total purchase price of $147.3 million. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Dec. 31, 2016 | |
SHARE-BASED COMPENSATION [Abstract] | |
SHARE-BASED COMPENSATION | 11. SHARE-BASED COMPENSATION Share-Based Plans As of December 31, 2016, we had share-based awards outstanding under the following Restricted Stock Activity For the nine months ended December 31, 2016, we granted 5,692 restricted shares under the 2008 Director LTIP, and 67,269 restricted shares under the 2012 Employee LTIP. For the nine months ended December 31, 2015, we granted 6,383 restricted shares under the 2008 Director LTIP, and 118,974 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, 2016 203,828 $ 72.33 Granted 72,961 $ 86.24 Vested (90,356 ) $ 65.99 Forfeited (349 ) $ 76.87 Nonvested December 31, 2016 186,084 $ 80.86 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 nine months ended December 31, 2016, the Company had withheld 29,736 shares of common stock at a value of $2.6 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 each of the three months ended December 31, 2016 and 2015, we recognized $1.5 million of total share-based compensation expense. During the nine months ended December 31, 2016 and 2015, we recognized $4.5 million and $4.2 million, respectively, of total share-based compensation expense. Unrecognized compensation expense related to non-vested restricted stock was $11.8 million as of December 31, 2016, which will be fully recognized over the next forty-two (42) months. We also provide our employees with a contributory 401(k) plan. Employer contribution percentages are determined by us and are discretionary each year. The employer contributions vest pro-ratably over a four-year service period by the employees, after which all employer contributions will be fully vested. For the three months ended December 31, 2016 and 2015 our estimated contribution expense for the plan were $0.5 million and $0.4 million, respectively. For the nine months ended December 31, 2016 and 2015, our estimated contribution expense for the plan was $1.2 million and $1.1 million, respectively. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Dec. 31, 2016 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 12. INCOME TAXES We account for our tax positions in accordance with Codification Topic 740, Income Taxes We recognize interest and penalties for uncertain tax positions. As of December 31, 2016 our gross liability related to uncertain tax positions was $72 thousand. At December 31, 2016 if the unrecognized tax benefits of $72 thousand were to be recognized, including the effect of interest, penalties and federal tax benefit, the impact would be $106 thousand. We also recognize accrued interest and penalties related to unrecognized tax benefits as a component of tax expense. We did not recognize any additional penalties in the three and nine month periods ended December 31, 2016. We had $51 thousand and $47 thousand accrued for the payment of interest at December 31, 2016 and 2015, respectively. As permitted by the recently issued ASU 2016-09, Stock Compensation |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Dec. 31, 2016 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 13. FAIR VALUE OF FINANCIAL INSTRUMENTS We account for the fair values of our assets and liabilities in accordance with ASC 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 December 31.2016 Assets: Money market funds $ 29,851 $ 29,851 $ - $ - Liabilities: Contingent consideration $ 554 $ - $ - $ 554 March 31, 2016 Assets: Money market funds $ 39,509 $ 39,509 $ - $ - Liabilities: Contingent consideration $ 1,041 $ - $ - $ 1,041 We recorded no adjustments that increased the fair value of our liability for contingent consideration for the three months ended December 31, 2016. For the nine months December 31, 2016, we recorded adjustments that increased the fair value of our liability for contingent consideration by $232 thousand; and such adjustments were presented within general and administrative expenses in our unaudited condensed consolidated statement of operations. During the three months and nine months ended December 31, 2016, we paid $0.7 million to satisfy the current obligations of the contingent consideration arrangement. For the three and nine months ended December 31, 2015, we recorded adjustments that increased the fair value of our liability for contingent consideration by $3 thousand and $318 thousand, respectively. During the three months and nine months ended December 31, 2015, we paid $1.2 million to satisfy the current obligations of the contingent consideration arrangement. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Dec. 31, 2016 | |
SEGMENT REPORTING [Abstract] | |
SEGMENT REPORTING | 14. SEGMENT REPORTING Our operations are conducted through two operating segments that are also both reportable segments. Our technology segment includes sales of information technology 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 was as follows (in thousands): Three Months Ended December 31, 2016 December 31, 2015 Technology Financing Total Technology Financing Total Sales of product and services $ 317,391 $ - $ 317,391 $ 287,859 $ - $ 287,859 Financing revenue - 8,190 8,190 - 9,289 9,289 Fee and other income 915 161 1,076 1,506 (10 ) 1,496 Net sales 318,306 8,351 326,657 289,365 9,279 298,644 Cost of sales, product and services 251,729 - 251,729 231,503 - 231,503 Direct lease costs - 1,142 1,142 - 3,081 3,081 Cost of sales 251,729 1,142 252,871 231,503 3,081 234,584 Professional and other fees 1,216 181 1,397 1,608 274 1,882 Salaries and benefits 40,155 2,230 42,385 35,043 2,329 37,372 General and administrative expenses 6,409 (31 ) 6,378 5,203 231 5,434 Depreciation and amortization 1,908 2 1,910 1,327 4 1,331 Interest and financing costs - 409 409 10 386 396 Operating expenses 49,688 2,791 52,479 43,191 3,224 46,415 Operating income $ 16,889 $ 4,418 $ 21,307 $ 14,671 $ 2,974 $ 17,645 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 1,941 $ 985 $ 2,926 $ 1,365 $ 3,152 $ 4,517 Purchases of property, equipment and operating lease equipment $ 849 $ 3,282 $ 4,131 $ 506 $ 884 $ 1,390 Selected Financial Data - Balance Sheet Total assets $ 546,728 $ 189,950 $ 736,678 $ 401,422 $ 229,012 $ 630,434 Nine Months Ended December 31, 2016 December 31, 2015 Statement of Operations Technology Financing Total Technology Financing Total Sales of product and services $ 968,799 $ - $ 968,799 $ 871,814 $ - $ 871,814 Financing revenue - 23,899 23,899 - 27,914 27,914 Fee and other income 3,679 245 3,924 5,038 30 5,068 Net sales 972,478 24,144 996,622 876,852 27,944 904,796 Cost of sales, product and services 769,780 - 769,780 700,429 - 700,429 Direct lease costs - 3,459 3,459 - 9,256 9,256 Cost of sales 769,780 3,459 773,239 700,429 9,256 709,685 Professional and other fees 4,138 780 4,918 4,175 738 4,913 Salaries and benefits 117,822 6,657 124,479 101,471 6,855 108,326 General and administrative expenses 19,335 1,089 20,424 16,653 737 17,390 Depreciation and amortization 5,400 8 5,408 3,728 11 3,739 Interest and financing costs - 1,158 1,158 51 1,320 1,371 Operating expenses 146,695 9,692 156,387 126,078 9,661 135,739 Operating income $ 56,003 $ 10,993 $ 66,996 $ 50,345 $ 9,027 $ 59,372 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 5,494 $ 3,264 $ 8,758 $ 3,831 $ 9,189 $ 13,020 Purchases of property, equipment and operating lease equipment $ 2,413 $ 4,887 $ 7,300 $ 1,700 $ 15,308 $ 17,008 Selected Financial Data - Balance Sheet Total assets $ 546,728 $ 189,950 $ 736,678 $ 401,422 $ 229,012 $ 630,434 The total of the reportable segments’ measure of profit or loss excludes other income of $380 thousand for the nine months ended December 31, 2016, which is included in the consolidated earnings before tax but is not allocated to the segments. On July 25, 2016, the Company announced its appointment of a new Chief Executive Officer and President effective August 1, 2016. We are currently evaluating the impact of this change |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended |
Dec. 31, 2016 | |
BUSINESS COMBINATIONS [Abstract] | |
BUSINESS COMBINATIONS | 15. BUSINESS COMBINATIONS Consolidated IT Services acquisition On December 6, 2016, our subsidiary ePlus Technology, inc., acquired certain assets and assumed certain liabilities of Consolidated IT Services. Consolidated IT Services business provides data center, unified communications, networking, and security solutions to a diverse set of domestic and international customers including commercial, enterprise, and state, local, and education (SLED) organizations in the upper Midwest. The primary reasons for this acquisition are that Consolidated IT Services expands our reach to the upper Midwest, a new geography for ePlus, and enables us to market our advanced technology solutions to their long-standing client base. The total purchase price is $13.1 million including $9.5 million paid in cash at closing and $4.0 million that will be paid in cash in equal quarterly installments over 2 years, less $0.4 million that we believe is due back to us as part of the final working capital adjustment. Our preliminary allocation of the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands): Acquisition Date Amount Accounts receivable and other current assets $ 7,501 Property and equipment 1,045 Identified intangible assets 3,340 Accounts payable and other current liabilities (6,411 ) Total identifiable net assets 5,475 Goodwill 7,614 Total purchase consideration $ 13,089 As stated above, our allocation of the purchase consideration is preliminary and subject to revision as additional information related to the fair value of assets and liabilities becomes available. The identified intangible assets of $3.3 million consist entirely of customer relationships with an estimated useful life of 7 years. We recognized goodwill related to this transaction of $7.6 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 through the acquisition date had the acquisition date been April 1, 2016, is not material. IGX acquisition On December 4, 2015, our subsidiary ePlus Technology, inc., acquired certain assets and assumed certain liabilities of IGX Acquisition Global, LLC (“IGX Acquisition”), and IGX Support, LLC, including IGX Acquisition’s wholly-owned subsidiary, IGXGlobal UK Limited (collectively, “IGX”), which provide advanced security solutions, secured networking products and related professional services to a diverse set of domestic and international customers including commercial, enterprise, and state and local government and education (“SLED”) organizations. IGX is headquartered near Hartford, CT and has a sales presence in New York and Boston as well as an operating branch in London that serves its United Kingdom (“UK”) and global customers. IGXGlobal UK Limited is a private limited company, registered in England and Wales. The total purchase price, net of cash acquired, was $16.6 million paid in cash. The allocation of the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands): Acquisition Date Amount Accounts receivable—trade, net $ 8,457 Property and equipment 81 Identified intangible assets 8,710 Accounts payable and other current liabilities (8,641 ) Deferred tax liability (89 ) Total identifiable net assets 8,518 Goodwill 8,131 Total purchase consideration $ 16,649 The identified intangible assets consist of the following: Estimated Useful Lives Acquisition Intangible assets—customer relationships 7 $ 7,680 Intangible assets—trade names 10 520 Intangible assets—backlog 1 510 Total identified intangible assets $ 8,710 We recognized goodwill related to this transaction of $8.1 million, which was assigned to our technology reporting unit. The goodwill recognized in the acquisition is attributable to the acquired assembled workforce, an entry into the UK and European markets and expected synergies, none of which qualify for recognition as a separate intangible asset. The total amount of goodwill that is expected to be deductible for tax purposes is $5.8 million. The impact to our revenues and net earnings from this acquisition is not material. |
ORGANIZATION AND SUMMARY OF S23
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Dec. 31, 2016 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION — The consolidated financial statements include the accounts of ePlus inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The accounts of businesses acquired are included in the consolidated financial statements from the dates of acquisition. |
INTERIM FINANCIAL STATEMENTS | INTERIM FINANCIAL STATEMENTS — The unaudited condensed consolidated financial statements for the three and nine months ended December 31, 2016 and 2015 were prepared by us, without audit, 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 three and nine months ended December 31, 2016 and 2015 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending March 31, 2017 or any other future period. These unaudited condensed consolidated financial statements do not include all disclosures required by the accounting principles generally accepted in the United States (“U.S. 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, 2016 (“2016 Financial Statements”), which should be read in conjunction with these interim condensed consolidated financial statements. |
USE OF ESTIMATES | USE OF ESTIMATES — The notes to the consolidated financial statements contained in the 2016 Financial Statements include additional discussion of the significant accounting policies and estimates used in the preparation of our consolidated financial statements. There have been no material changes to our significant accounting policies and estimates during the nine months ended December 31, 2016. |
DEFERRED COSTS AND DEFERRED REVENUES | DEFERRED COSTS AND DEFERRED REVENUES — Deferred costs include internal and third party costs associated with deferred revenue arrangements. Deferred revenue includes payments received from customers in advance of delivering equipment and software or performing professional, managed and hosting services and amounts deferred when any of the other revenue recognition criteria have not been met. At December 31, 2016, total deferred costs and revenues were $9.4 million and $67.3 million, respectively, compared to $8.2 million and $20.2 million, respectively, as of March 31, 2016. The increase in deferred revenue is primarily due to prepayments by a customer for equipment that we expect to deliver in the next three to six months. |
CONCENTRATIONS OF RISK | CONCENTRATIONS OF RISK — A substantial portion of our sales of product and services are from sales of Cisco Systems, Hewlett Packard Enterprise (“HPE”), and NetApp products, which represented approximately 45%, 6% and 6% and 49%, 6% and 5%, respectively, for the three and nine months ended December 31, 2016. Sales of Cisco Systems, Hewlett Packard (“HP”), and NetApp products represented approximately 48%, 6%, and 7%, and 49%, 8%, and 5%, respectively, for the three and nine months ended December 31, 2015. Any changes in our vendors’ ability to provide products or incentive programs could have a material adverse effect on our business, results of operations and financial condition. |
RECENT ACCOUNTING PRONOUNCEME24
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 9 Months Ended |
Dec. 31, 2016 | |
RECENTLY ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS — In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Stock Compensation |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED — In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Principal versus Agent Considerations Identifying Performance Obligations and Licensing Narrow-Scope Improvements and Practical Expedients Technical Corrections and Improvements to Topic 606 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In February 2016, the FASB issued ASU 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
FINANCING RECEIVABLES AND OPE25
FINANCING RECEIVABLES AND OPERATING LEASES (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
FINANCING RECEIVABLES AND OPERATING LEASES [Abstract] | |
Components of Notes Receivable Net and Investments in Leases | Our financing receivables, net consist of the following (in thousands): December 31, 2016 Notes Receivables Lease-Related Receivables Total Financing Receivables Minimum payments $ 53,167 $ 71,343 $ 124,510 Estimated unguaranteed residual value (1) - 18,069 18,069 Initial direct costs, net of amortization (2) 465 518 983 Unearned income - (7,017 ) (7,017 ) Reserve for credit losses (3) (3,508 ) (778 ) (4,286 ) Total, net $ 50,124 $ 82,135 $ 132,259 Reported as: Current $ 32,269 $ 33,676 $ 65,945 Long-term 17,855 48,459 66,314 Total, net $ 50,124 $ 82,135 $ 132,259 (1) Includes estimated unguaranteed residual values of $11,932 thousand for direct financing leases, which have been sold and accounted for as sales. (2) Initial direct costs are shown net of amortization of $665 thousand. (3) For details on reserve for credit losses, refer to Note 5, “Reserves for Credit Losses.” March 31, 2016 Notes Receivables Lease-Related Receivables Total Financing Receivables Minimum payments $ 44,442 $ 66,303 $ 110,745 Estimated unguaranteed residual value (1) - 12,693 12,693 Initial direct costs, net of amortization (2) 312 475 787 Unearned income - (5,543 ) (5,543 ) Reserve for credit losses (3) (3,381 ) (685 ) (4,066 ) Total, net $ 41,373 $ 73,243 $ 114,616 Reported as: Current $ 24,962 $ 31,486 $ 56,448 Long-term 16,411 41,757 58,168 Total, net $ 41,373 $ 73,243 $ 114,616 (1) Includes estimated unguaranteed residual values of $6,722 thousand for direct financing leases which have been sold and accounted for as sales. (2) Initial direct costs are shown net of amortization of $612 thousand. (3) For details on reserve for credit losses, refer to Note 5, “Reserves for Credit Losses.” |
Investment in Operating Lease Equipment - Net | The components of the operating leases—net are as follows (in thousands): December 31, 2016 March 31, 2016 Cost of equipment under operating leases $ 17,062 $ 36,635 Accumulated depreciation (8,886 ) (18,897 ) Investment in operating lease equipment—net (1) $ 8,176 $ 17,738 (1) These totals include estimated unguaranteed residual values of $928 thousand and $3,417 thousand as of December 31, 2016 and March 31, 2016, respectively. |
GOODWILL AND OTHER INTANGIBLE26
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |
Components of Goodwill and Other Intangible Assets | Our goodwill and other intangible assets consist of the following (in thousands): December 31, 2016 March 31, 2016 Gross Carrying Amount Accumulated Amortization / Impairment Loss Net Carrying Amount Gross Carrying Amount Accumulated Amortization / Impairment Loss Net Carrying Amount Goodwill $ 58,145 $ (8,673 ) $ 49,472 $ 50,824 $ (8,673 ) $ 42,151 Customer relationships & other intangibles 22,818 (11,640 ) 11,178 20,401 (9,193 ) 11,208 Capitalized software development 3,247 (2,207 ) 1,040 2,709 (1,914 ) 795 Total $ 84,210 $ (22,520 ) $ 61,690 $ 73,934 $ (19,780 ) $ 54,154 |
RESERVES FOR CREDIT LOSSES (Tab
RESERVES FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
RESERVES FOR CREDIT LOSSES [Abstract] | |
Activity in Reserves for Credit Losses | Activity in our reserves for credit losses for the nine months ended December 31, 2016 and 2015 were as follows (in thousands): Accounts Receivable Notes Receivable Lease-Related Receivables Total Balance April 1, 2016 $ 1,127 $ 3,381 $ 685 $ 5,193 Provision for credit losses 229 139 93 461 Write-offs and other (32 ) (12 ) - (44 ) Balance December 31, 2016 $ 1,324 $ 3,508 $ 778 $ 5,610 Accounts Receivable Notes Receivable Lease-Related Receivables Total Balance April 1, 2015 $ 1,169 $ 3,573 $ 881 $ 5,623 Provision for credit losses 12 7 (50 ) (31 ) Write-offs and other (119 ) - - (119 ) Balance December 31, 2015 $ 1,062 $ 3,580 $ 831 $ 5,473 |
Reserve for Credit Losses and Minimum Lease Payments Associated with Notes Receivable and Investment in Direct Financing and Sales-type Lease Balances Disaggregated on the Basis of Impairment Method | Our reserves for credit losses and minimum payments associated with our notes receivables and lease-related receivables disaggregated on the basis of our impairment method were as follows (in thousands): December 31, 2016 March 31, 2016 Notes Receivable Lease- Related Receivables Notes Receivable Lease- Related Receivables Reserves for credit losses: Ending balance: collectively evaluated for impairment $ 406 $ 655 $ 279 $ 562 Ending balance: individually evaluated for impairment 3,102 123 3,102 123 Ending balance $ 3,508 $ 778 $ 3,381 $ 685 Minimum payments: Ending balance: collectively evaluated for impairment $ 50,016 $ 71,201 $ 41,340 $ 66,161 Ending balance: individually evaluated for impairment 3,151 142 3,102 142 Ending balance $ 53,167 $ 71,343 $ 44,442 $ 66,303 |
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR | The age of the recorded minimum lease payments and net credit exposure associated with our investment in direct financing and sales-type leases that are past due disaggregated based on our internally assigned credit quality rating (“CQR”) were as follows as of December 31, 2016 and March 31, 2016 (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 December 31, 2016 High CQR $ 163 $ 49 $ 98 $ 310 $ 137 $ 45,570 $ 46,017 $ (3,466 ) $ (21,532 ) $ 21,019 Average CQR 44 25 96 165 43 24,976 25,184 (1,667 ) (12,684 ) 10,833 Low CQR - - 142 142 - - 142 (19 ) - 123 Total $ 207 $ 74 $ 336 $ 617 $ 180 $ 70,546 $ 71,343 $ (5,152 ) $ (34,216 ) $ 31,975 March 31, 2016 High CQR $ 575 $ 52 $ 94 $ 721 $ 984 $ 46,157 $ 47,862 $ (2,705 ) $ (22,914 ) $ 22,243 Average CQR 15 17 78 110 159 18,030 18,299 (1,387 ) (8,714 ) 8,198 Low CQR - - 142 142 - - 142 (19 ) - 123 Total $ 590 $ 69 $ 314 $ 973 $ 1,143 $ 64,187 $ 66,303 $ (4,111 ) $ (31,628 ) $ 30,564 |
Balance Disaggregated Based on Internally Assigned CQR | The age of the recorded notes receivable balance disaggregated based on our internally assigned CQR were as follows as December 31, 2016 and March 31, 2016 (in thousands): 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Current Unbilled Notes Receivable Total Notes Receivable Non- Recourse Notes Payable Net Credit Exposure December 31, 2016 High CQR $ 1,369 $ 312 $ 827 $ 2,508 $ 1,244 $ 28,206 $ 31,958 $ (15,330 ) $ 16,628 Average CQR 157 10 - 167 920 16,971 18,058 (12,640 ) 5,418 Low CQR - - 3,151 3,151 - - 3,151 - 3,151 Total $ 1,526 $ 322 $ 3,978 $ 5,826 $ 2,164 $ 45,177 $ 53,167 $ (27,970 ) $ 25,197 March 31, 2016 High CQR $ 399 $ 305 $ 2,168 $ 2,872 $ 301 $ 24,092 $ 27,265 $ (11,644 ) $ 15,621 Average CQR - - - - 202 13,873 14,075 (9,942 ) 4,133 Low CQR - - 3,102 3,102 - - 3,102 - 3,102 Total $ 399 $ 305 $ 5,270 $ 5,974 $ 503 $ 37,965 $ 44,442 $ (21,586 ) $ 22,856 |
PROPERTY, EQUIPMENT, OTHER AS28
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
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): December 31, 2016 March 31, 2016 Other current assets: Deposits & funds held in escrow $ 485 $ 3,116 Prepaid assets 2,773 6,683 Other 777 850 Total other current assets $ 4,035 $ 10,649 Other assets: Deferred costs $ 2,979 $ 1,831 Property and equipment, net 6,945 6,266 Other 1,780 547 Total other assets - long term $ 11,704 $ 8,644 December 31, March 31, Other current liabilities: Accrued expenses $ 6,969 $ 7,109 Accrued income taxes payable 1,093 - Other 7,780 6,009 Total other current liabilities $ 15,842 $ 13,118 Other liabilities: Deferred revenue $ 3,599 $ 1,866 Other 2,876 397 Total other liabilities - long term $ 6,475 $ 2,263 |
NOTES PAYABLE AND CREDIT FACI29
NOTES PAYABLE AND CREDIT FACILITY (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
NOTES PAYABLE AND CREDIT FACILITY [Abstract] | |
Non-recourse and Recourse Obligations | Non-recourse and recourse obligations consist of the following (in thousands): December 31, March 31, Recourse notes payable with interest rates ranging from 2.75% and 4.13% at December 31, 2016 and ranging from 2.70% and 4.13%at March 31, 2016. Current $ 1,605 $ 2,288 Long-term - 1,054 Total recourse notes payable $ 1,605 $ 3,342 Non-recourse notes payable secured by financing receivables and investments in operating leases with interest rates ranging from 2.0% to 7.50% at December 31, 2016 and ranging from 1.70% to 8.50% as of March 31, 2016. Current $ 41,785 $ 26,042 Long-term 10,608 18,038 Total non-recourse notes payable $ 52,393 $ 44,080 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
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 consolidated statements of operations for the three and nine months ended December 31, 2016 and 2015 (in thousands, except per share data): Three Months Ended Nine Months Ended December 31, 2016 2015 2016 2015 Net earnings attributable to common shareholders - basic and diluted $ 12,620 $ 10,297 $ 40,066 $ 34,790 Basic and diluted common shares outstanding: Weighted average common shares outstanding — basic 6,896 7,280 6,946 7,260 Effect of dilutive shares 64 49 67 76 Weighted average shares common outstanding — diluted 6,960 7,329 7,013 7,336 Earnings per common share - basic $ 1.83 $ 1.41 $ 5.77 $ 4.79 Earnings per common share - diluted $ 1.81 $ 1.40 $ 5.71 $ 4.74 |
Pro forma Earnings Per Share | The following table provides pro forma earnings per share, giving retroactive effect to the stock split (in thousands, except per share data): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Earnings per common share: Basic — pro forma $ 0.92 $ 0.71 $ 2.88 $ 2.40 Diluted — pro forma $ 0.91 $ 0.70 $ 2.86 $ 2.37 Weighted average common shares outstanding: Basic — pro forma 13,791 14,561 13,891 14,519 Diluted — pro forma 13,920 14,659 14,026 14,672 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
SHARE-BASED COMPENSATION [Abstract] | |
Summary of Restricted Shares | A summary of the restricted shares is as follows: Number of Shares Weighted Average Grant- date Fair Value Nonvested April 1, 2016 203,828 $ 72.33 Granted 72,961 $ 86.24 Vested (90,356 ) $ 65.99 Forfeited (349 ) $ 76.87 Nonvested December 31, 2016 186,084 $ 80.86 |
FAIR VALUE OF FINANCIAL INSTR32
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
Fair Value Hierarchy of Financial Instruments | The following table summarizes the fair value hierarchy of our financial instruments as of December 31, 2016 and March 31, 2016 (in thousands): 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 December 31.2016 Assets: Money market funds $ 29,851 $ 29,851 $ - $ - Liabilities: Contingent consideration $ 554 $ - $ - $ 554 March 31, 2016 Assets: Money market funds $ 39,509 $ 39,509 $ - $ - Liabilities: Contingent consideration $ 1,041 $ - $ - $ 1,041 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
SEGMENT REPORTING [Abstract] | |
Segment Reporting Information, by Reportable Segment | Three Months Ended December 31, 2016 December 31, 2015 Technology Financing Total Technology Financing Total Sales of product and services $ 317,391 $ - $ 317,391 $ 287,859 $ - $ 287,859 Financing revenue - 8,190 8,190 - 9,289 9,289 Fee and other income 915 161 1,076 1,506 (10 ) 1,496 Net sales 318,306 8,351 326,657 289,365 9,279 298,644 Cost of sales, product and services 251,729 - 251,729 231,503 - 231,503 Direct lease costs - 1,142 1,142 - 3,081 3,081 Cost of sales 251,729 1,142 252,871 231,503 3,081 234,584 Professional and other fees 1,216 181 1,397 1,608 274 1,882 Salaries and benefits 40,155 2,230 42,385 35,043 2,329 37,372 General and administrative expenses 6,409 (31 ) 6,378 5,203 231 5,434 Depreciation and amortization 1,908 2 1,910 1,327 4 1,331 Interest and financing costs - 409 409 10 386 396 Operating expenses 49,688 2,791 52,479 43,191 3,224 46,415 Operating income $ 16,889 $ 4,418 $ 21,307 $ 14,671 $ 2,974 $ 17,645 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 1,941 $ 985 $ 2,926 $ 1,365 $ 3,152 $ 4,517 Purchases of property, equipment and operating lease equipment $ 849 $ 3,282 $ 4,131 $ 506 $ 884 $ 1,390 Selected Financial Data - Balance Sheet Total assets $ 546,728 $ 189,950 $ 736,678 $ 401,422 $ 229,012 $ 630,434 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Business Acquisition [Line Items] | |
Schedule of Identified Intangible Assets | The identified intangible assets consist of the following: Estimated Useful Lives Acquisition Intangible assets—customer relationships 7 $ 7,680 Intangible assets—trade names 10 520 Intangible assets—backlog 1 510 Total identified intangible assets $ 8,710 |
Consolidated IT Services [Member] | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed | Acquisition Date Amount Accounts receivable and other current assets $ 7,501 Property and equipment 1,045 Identified intangible assets 3,340 Accounts payable and other current liabilities (6,411 ) Total identifiable net assets 5,475 Goodwill 7,614 Total purchase consideration $ 13,089 |
IGX Acquisition [Member] | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed | The allocation of the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands): Acquisition Date Amount Accounts receivable—trade, net $ 8,457 Property and equipment 81 Identified intangible assets 8,710 Accounts payable and other current liabilities (8,641 ) Deferred tax liability (89 ) Total identifiable net assets 8,518 Goodwill 8,131 Total purchase consideration $ 16,649 |
ORGANIZATION AND SUMMARY OF S35
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | |
DEFERRED COSTS AND DEFERRED REVENUES [Abstract] | |||||
Deferred costs | $ 9.4 | $ 9.4 | $ 8.2 | ||
Deferred revenue | $ 67.3 | $ 67.3 | $ 20.2 | ||
Sales Revenue, Goods and Services [Member] | Cisco [Member] | |||||
CONCENTRATION OF RISK [Abstract] | |||||
Percentage of concentration risk | 45.00% | 48.00% | 49.00% | 49.00% | |
Sales Revenue, Goods and Services [Member] | Hewlett Packard [Member] | |||||
CONCENTRATION OF RISK [Abstract] | |||||
Percentage of concentration risk | 6.00% | 6.00% | 6.00% | 8.00% | |
Sales Revenue, Goods and Services [Member] | NetApp [Member] | |||||
CONCENTRATION OF RISK [Abstract] | |||||
Percentage of concentration risk | 6.00% | 7.00% | 5.00% | 5.00% |
RECENT ACCOUNTING PRONOUNCEME36
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Excess tax benefits and deficiencies | $ 8,687 | $ 7,348 | $ 27,310 | $ 24,582 |
New Accounting Pronouncement, Early Adoption, Effect [Member] | Restatement Adjustment [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Excess tax benefits and deficiencies | $ (500) | $ (500) | ||
Excess tax benefits and deficiencies (in dollars per share) | $ (0.07) | |||
Excess tax benefits related to share-based awards | $ 1,200 |
FINANCING RECEIVABLES AND OPE37
FINANCING RECEIVABLES AND OPERATING LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Reserve for credit losses | $ (5,610) | $ (5,473) | $ (5,610) | $ (5,473) | $ (5,193) | $ (5,623) | ||||
Reported as [Abstract] | ||||||||||
Current | 65,945 | 65,945 | 56,448 | |||||||
Estimated unguaranteed residual values for direct financing lease | 11,932 | 11,932 | 6,722 | |||||||
Accumulated amortization of initial direct cost | 665 | 665 | 612 | |||||||
Collateral for non-recourse notes payable - Finance receivables | 54,900 | 54,900 | 36,100 | |||||||
Collateral for non-recourse notes payable - Operating leases | 6,700 | 6,700 | 13,900 | |||||||
Gain on sale of financing receivables | 900 | 1,400 | 4,100 | 5,400 | ||||||
Proceeds from sale of financing receivables | 55,800 | 54,100 | 185,400 | 162,700 | ||||||
Investment in operating lease equipment - net [Abstract] | ||||||||||
Cost of equipment under operating lease | 17,062 | 17,062 | 36,635 | |||||||
Accumulated depreciation | (8,886) | (8,886) | (18,897) | |||||||
Investment in operating lease equipment - net | [1] | 8,176 | 8,176 | 17,738 | ||||||
Unguaranteed residual value of operating lease equipment net | 928 | 928 | 3,417 | |||||||
Maximum potential future payments related guarantees | 1,200 | 1,200 | ||||||||
Notes Receivables [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Minimum payments | 53,167 | 53,167 | 44,442 | |||||||
Estimated unguaranteed residual value | 0 | [2] | 0 | [2] | 0 | [3] | ||||
Initial direct costs, net of amortization | 465 | [4] | 465 | [4] | 312 | [5] | ||||
Unearned income | 0 | 0 | 0 | |||||||
Reserve for credit losses | (3,508) | [6] | (3,580) | (3,508) | [6] | (3,580) | (3,381) | [6] | (3,573) | |
Total, net | 50,124 | 50,124 | 41,373 | |||||||
Reported as [Abstract] | ||||||||||
Current | 32,269 | 32,269 | 24,962 | |||||||
Long-term | 17,855 | 17,855 | 16,411 | |||||||
Total, net | 50,124 | 50,124 | 41,373 | |||||||
Lease-Related Receivables [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Minimum payments | 71,343 | 71,343 | 66,303 | |||||||
Estimated unguaranteed residual value | 18,069 | [2] | 18,069 | [2] | 12,693 | [3] | ||||
Initial direct costs, net of amortization | 518 | [4] | 518 | [4] | 475 | [5] | ||||
Unearned income | (7,017) | (7,017) | (5,543) | |||||||
Reserve for credit losses | (778) | [6] | $ (831) | (778) | [6] | $ (831) | (685) | [6] | $ (881) | |
Total, net | 82,135 | 82,135 | 73,243 | |||||||
Reported as [Abstract] | ||||||||||
Current | 33,676 | 33,676 | 31,486 | |||||||
Long-term | 48,459 | 48,459 | 41,757 | |||||||
Total, net | 82,135 | 82,135 | 73,243 | |||||||
Financing Receivables [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Minimum payments | 124,510 | 124,510 | 110,745 | |||||||
Estimated unguaranteed residual value | 18,069 | [2] | 18,069 | [2] | 12,693 | [3] | ||||
Initial direct costs, net of amortization | 983 | [4] | 983 | [4] | 787 | [5] | ||||
Unearned income | (7,017) | (7,017) | (5,543) | |||||||
Reserve for credit losses | [6] | (4,286) | (4,286) | (4,066) | ||||||
Total, net | 132,259 | 132,259 | 114,616 | |||||||
Reported as [Abstract] | ||||||||||
Current | 65,945 | 65,945 | 56,448 | |||||||
Long-term | 66,314 | 66,314 | 58,168 | |||||||
Total, net | $ 132,259 | $ 132,259 | $ 114,616 | |||||||
[1] | These totals include estimated unguaranteed residual values of $928 thousand and $3,417 thousand as of December 31, 2016 and March 31, 2016, respectively. | |||||||||
[2] | Includes estimated unguaranteed residual values of $11,932 thousand for direct financing leases, which have been sold and accounted for as sales. | |||||||||
[3] | Includes estimated unguaranteed residual values of $6,722 thousand for direct financing leases which have been sold and accounted for as sales. | |||||||||
[4] | Initial direct costs are shown net of amortization of $665 thousand. | |||||||||
[5] | Initial direct costs are shown net of amortization of $612 thousand. | |||||||||
[6] | For details on reserve for credit losses, refer to Note 5, "Reserves for Credit Losses." |
GOODWILL AND OTHER INTANGIBLE38
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($)Unit | Dec. 31, 2015USD ($) | Dec. 06, 2016USD ($) | Mar. 31, 2016USD ($) | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ||||||
Goodwill and other intangible assets, Gross carrying amount | $ 84,210 | $ 84,210 | $ 73,934 | |||
Goodwill and other intangible assets, Accumulated amortization | (22,520) | (22,520) | (19,780) | |||
Goodwill and other intangible assets Net | 61,690 | $ 61,690 | 54,154 | |||
Finite-Lived Intangible Assets [Line Items] | ||||||
Number of reporting units | Unit | 1 | |||||
Percentage change in the fair value | 10.00% | |||||
Total amortization expense | 1,100 | $ 800 | $ 3,400 | $ 2,100 | ||
Goodwill [Line Items] | ||||||
Goodwill Gross | 58,145 | 58,145 | 50,824 | |||
Goodwill, Accumulated Amortization / Impairment Loss | (8,673) | (8,673) | (8,673) | |||
Goodwill, Net Carrying Amount | 49,472 | 49,472 | 42,151 | |||
Consolidated IT Services [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Additions to goodwill amount | 7,300 | |||||
Goodwill increased due to acquisition | 7,600 | |||||
Goodwill translation adjustments | 300 | |||||
Goodwill [Line Items] | ||||||
Goodwill, Net Carrying Amount | $ 7,614 | |||||
Customer Relationships & Other Intangibles [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangibles assets, Gross carrying amount | 22,818 | 22,818 | 20,401 | |||
Intangibles Assets, Accumulated amortization / Impairment Loss | (11,640) | (11,640) | (9,193) | |||
Intangible assets, Net Carrying Amount | 11,178 | $ 11,178 | 11,208 | |||
Customer Relationships & Other Intangibles [Member] | Minimum [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Estimated useful life | 3 years | |||||
Customer Relationships & Other Intangibles [Member] | Maximum [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Estimated useful life | 7 years | |||||
Capitalized Software Development [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangibles assets, Gross carrying amount | 3,247 | $ 3,247 | 2,709 | |||
Intangibles Assets, Accumulated amortization / Impairment Loss | (2,207) | (2,207) | (1,914) | |||
Intangible assets, Net Carrying Amount | $ 1,040 | $ 1,040 | $ 795 | |||
Capitalized Software Development [Member] | Minimum [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Estimated useful life | 3 years | |||||
Capitalized Software Development [Member] | Maximum [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Estimated useful life | 7 years | |||||
Trademarks and Trade Names [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Estimated useful life | 10 years |
RESERVES FOR CREDIT LOSSES (Det
RESERVES FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Mar. 31, 2016 | ||||
Activity in reserves for credit losses [Roll Forward] | |||||||
Balance | $ 5,193 | $ 5,623 | |||||
Provision for credit losses | 461 | (31) | |||||
Write-offs and other | (44) | (119) | |||||
Balance | 5,610 | 5,473 | |||||
Reserve for credit losses [Abstract] | |||||||
Ending balance: individually evaluated for impairment | $ 3,200 | $ 3,200 | |||||
Ending balance | 5,193 | 5,623 | 5,610 | 5,193 | |||
Accounts Receivable [Member] | |||||||
Activity in reserves for credit losses [Roll Forward] | |||||||
Balance | 1,127 | 1,169 | |||||
Provision for credit losses | 229 | 12 | |||||
Write-offs and other | (32) | (119) | |||||
Balance | 1,324 | 1,062 | |||||
Reserve for credit losses [Abstract] | |||||||
Ending balance | 1,127 | 1,169 | 1,324 | 1,127 | |||
Notes Receivable [Member] | |||||||
Activity in reserves for credit losses [Roll Forward] | |||||||
Balance | 3,381 | [1] | 3,573 | ||||
Provision for credit losses | 139 | 7 | |||||
Write-offs and other | (12) | 0 | |||||
Balance | 3,508 | [1] | 3,580 | ||||
Reserve for credit losses [Abstract] | |||||||
Ending balance: collectively evaluated for impairment | 406 | 279 | |||||
Ending balance: individually evaluated for impairment | 3,102 | 3,102 | |||||
Ending balance | 3,508 | [1] | 3,573 | 3,508 | [1] | 3,381 | [1] |
Minimum payments [Abstract] | |||||||
Ending balance: collectively evaluated for impairment | 50,016 | 41,340 | |||||
Ending balance: individually evaluated for impairment | 3,151 | 3,102 | |||||
Ending balance | 53,167 | 44,442 | |||||
Lease-Related Receivables [Member] | |||||||
Activity in reserves for credit losses [Roll Forward] | |||||||
Balance | 685 | [1] | 881 | ||||
Provision for credit losses | 93 | (50) | |||||
Write-offs and other | 0 | 0 | |||||
Balance | 778 | [1] | 831 | ||||
Reserve for credit losses [Abstract] | |||||||
Ending balance: collectively evaluated for impairment | 655 | 562 | |||||
Ending balance: individually evaluated for impairment | 123 | 123 | |||||
Ending balance | $ 685 | [1] | $ 881 | 778 | [1] | 685 | [1] |
Minimum payments [Abstract] | |||||||
Ending balance: collectively evaluated for impairment | 71,201 | 66,161 | |||||
Ending balance: individually evaluated for impairment | 142 | 142 | |||||
Ending balance | $ 71,343 | $ 66,303 | |||||
[1] | For details on reserve for credit losses, refer to Note 5, "Reserves for Credit Losses." |
RESERVES FOR CREDIT LOSSES, CQR
RESERVES FOR CREDIT LOSSES, CQR (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | $ 617 | $ 973 |
Current | 180 | 1,143 |
Unbilled Minimum Lease Payments | 70,546 | 64,187 |
Total Minimum Lease Payments | 71,343 | 66,303 |
Unearned income | (5,152) | (4,111) |
Non-Recourse Notes Payable | (34,216) | (31,628) |
Net Credit Exposure | 31,975 | 30,564 |
Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 5,826 | 5,974 |
Current | 2,164 | 503 |
Unbilled Minimum Lease Payments | 45,177 | 37,965 |
Total Minimum Lease Payments | 53,167 | 44,442 |
Non-Recourse Notes Payable | (27,970) | (21,586) |
Net Credit Exposure | $ 25,197 | 22,856 |
High CQR [Member] | Minimum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Losses on net credit exposure | 0.00% | |
High CQR [Member] | Maximum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Losses on net credit exposure | 5.00% | |
High CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | $ 310 | 721 |
Current | 137 | 984 |
Unbilled Minimum Lease Payments | 45,570 | 46,157 |
Total Minimum Lease Payments | 46,017 | 47,862 |
Unearned income | (3,466) | (2,705) |
Non-Recourse Notes Payable | (21,532) | (22,914) |
Net Credit Exposure | 21,019 | 22,243 |
High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 2,508 | 2,872 |
Current | 1,244 | 301 |
Unbilled Minimum Lease Payments | 28,206 | 24,092 |
Total Minimum Lease Payments | 31,958 | 27,265 |
Non-Recourse Notes Payable | (15,330) | (11,644) |
Net Credit Exposure | $ 16,628 | 15,621 |
Average CQR [Member] | Minimum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Losses on net credit exposure | 2.00% | |
Average CQR [Member] | Maximum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Losses on net credit exposure | 15.00% | |
Average CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | $ 165 | 110 |
Current | 43 | 159 |
Unbilled Minimum Lease Payments | 24,976 | 18,030 |
Total Minimum Lease Payments | 25,184 | 18,299 |
Unearned income | (1,667) | (1,387) |
Non-Recourse Notes Payable | (12,684) | (8,714) |
Net Credit Exposure | 10,833 | 8,198 |
Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 167 | 0 |
Current | 920 | 202 |
Unbilled Minimum Lease Payments | 16,971 | 13,873 |
Total Minimum Lease Payments | 18,058 | 14,075 |
Non-Recourse Notes Payable | (12,640) | (9,942) |
Net Credit Exposure | $ 5,418 | 4,133 |
Low CQR [Member] | Minimum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Losses on net credit exposure | 15.00% | |
Low CQR [Member] | Maximum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Losses on net credit exposure | 100.00% | |
Low CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | $ 142 | 142 |
Current | 0 | 0 |
Unbilled Minimum Lease Payments | 0 | 0 |
Total Minimum Lease Payments | 142 | 142 |
Unearned income | (19) | (19) |
Non-Recourse Notes Payable | 0 | 0 |
Net Credit Exposure | 123 | 123 |
Low CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 3,151 | 3,102 |
Current | 0 | 0 |
Unbilled Minimum Lease Payments | 0 | 0 |
Total Minimum Lease Payments | 3,151 | 3,102 |
Non-Recourse Notes Payable | 0 | 0 |
Net Credit Exposure | 3,151 | 3,102 |
31 to 60 Days Past Due [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 207 | 590 |
31 to 60 Days Past Due [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 1,526 | 399 |
31 to 60 Days Past Due [Member] | High CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 163 | 575 |
31 to 60 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 1,369 | 399 |
31 to 60 Days Past Due [Member] | Average CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 44 | 15 |
31 to 60 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 157 | 0 |
31 to 60 Days Past Due [Member] | Low CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 0 |
31 to 60 Days Past Due [Member] | Low CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 0 |
61 to 90 Days Past Due [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 74 | 69 |
61 to 90 Days Past Due [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 322 | 305 |
61 to 90 Days Past Due [Member] | High CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 49 | 52 |
61 to 90 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 312 | 305 |
61 to 90 Days Past Due [Member] | Average CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 25 | 17 |
61 to 90 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 10 | 0 |
61 to 90 Days Past Due [Member] | Low CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 0 |
61 to 90 Days Past Due [Member] | Low CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 0 |
Greater than 90 Days Past Due [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 336 | 314 |
Greater than 90 Days Past Due [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 3,978 | 5,270 |
Greater than 90 Days Past Due [Member] | High CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 98 | 94 |
Greater than 90 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 827 | 2,168 |
Greater than 90 Days Past Due [Member] | Average CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 96 | 78 |
Greater than 90 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 0 |
Greater than 90 Days Past Due [Member] | Low CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 142 | 142 |
Greater than 90 Days Past Due [Member] | Low CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | $ 3,151 | $ 3,102 |
PROPERTY, EQUIPMENT, OTHER AS41
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Other current assets [Abstract] | ||
Deposits & funds held in escrow | $ 485 | $ 3,116 |
Prepaid assets | 2,773 | 6,683 |
Other | 777 | 850 |
Total other current assets | 4,035 | 10,649 |
Other assets [Abstract] | ||
Deferred costs | 2,979 | 1,831 |
Property and equipment, net | 6,945 | 6,266 |
Other | 1,780 | 547 |
Total other assets - long term | 11,704 | 8,644 |
Other current liabilities [Abstract] | ||
Accrued expenses | 6,969 | 7,109 |
Accrued income taxes payable | 1,093 | 0 |
Other | 7,780 | 6,009 |
Total other current liabilities | 15,842 | 13,118 |
Other liabilities [Abstract] | ||
Deferred revenue | 3,599 | 1,866 |
Other | 2,876 | 397 |
Total other liabilities - long term | $ 6,475 | $ 2,263 |
NOTES PAYABLE AND CREDIT FACI42
NOTES PAYABLE AND CREDIT FACILITY (Details) $ in Thousands | 9 Months Ended | |
Dec. 31, 2016USD ($)Component | Mar. 31, 2016USD ($) | |
Recourse Notes Payable [Abstract] | ||
Current | $ 1,605 | $ 2,288 |
Long-term | 0 | 1,054 |
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Current | 41,785 | 26,042 |
Long-term | 10,608 | 18,038 |
Guarantor obligations for credit facility, maximum | $ 1,200 | |
WFCDF [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Number of components under credit facility | Component | 2 | |
Maximum amount can be borrowed under credit facility | $ 250,000 | |
Period of notice required to terminate credit facility at year end | 90 days | |
Period of filing of financial statements for each quarter end | 45 days | |
Guarantor obligations for credit facility, maximum | $ 10,500 | |
WFCDF [Member] | One Month LIBOR [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Basis spread on reference rate | 2.50% | |
Account Receivable Component [Member] | WFCDF [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Amount outstanding under credit facility | $ 0 | 0 |
Maximum amount can be borrowed under credit facility | 30,000 | |
Floor Plan Component [Member] | WFCDF [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Amount outstanding under credit facility | 120,900 | 121,900 |
Recourse Note Payable [Member] | ||
Recourse Notes Payable [Abstract] | ||
Current | 1,605 | 2,288 |
Long-term | 0 | 1,054 |
Total recourse notes payable | $ 1,605 | $ 3,342 |
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Weighted average interest rate of notes | 3.24% | 3.24% |
Recourse Note Payable [Member] | Minimum [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Interest rate of notes | 2.75% | 2.70% |
Recourse Note Payable [Member] | Maximum [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Interest rate of notes | 4.13% | 4.13% |
Non-Recourse Note Payable [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Current | $ 41,785 | $ 26,042 |
Long-term | 10,608 | 18,038 |
Total non-recourse notes payable | $ 52,393 | $ 44,080 |
Weighted average interest rate of notes | 3.38% | 3.13% |
Non-Recourse Note Payable [Member] | Minimum [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Interest rate of notes | 2.00% | 1.70% |
Non-Recourse Note Payable [Member] | Maximum [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Interest rate of notes | 7.50% | 8.50% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 9 Months Ended |
Dec. 31, 2016USD ($) | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Claim settlement received | $ 380,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net earnings attributable to common shareholders - basic and diluted | $ 12,620 | $ 10,297 | $ 40,066 | $ 34,790 |
Basic and diluted common shares outstanding [Abstract] | ||||
Weighted average common shares outstanding-basic (in shares) | 6,896 | 7,280 | 6,946 | 7,260 |
Effect of dilutive shares (in shares) | 64 | 49 | 67 | 76 |
Weighted average shares common outstanding-diluted (in shares) | 6,960 | 7,329 | 7,013 | 7,336 |
Earnings per common share - basic (in dollars per share) | $ 1.83 | $ 1.41 | $ 5.77 | $ 4.79 |
Earnings per common share - diluted (in dollars per share) | 1.81 | 1.40 | 5.71 | 4.74 |
Earnings Per Share, Pro Forma [Abstract] | ||||
Basic - pro forma | 0.92 | 0.71 | 2.88 | 2.40 |
Diluted - pro forma | $ 0.91 | $ 0.70 | $ 2.86 | $ 2.37 |
Weighted Average Common Shares Outstanding - Pro Forma: | ||||
Basic - pro forma | 13,791 | 14,561 | 13,891 | 14,519 |
Diluted - pro forma | 13,920 | 14,659 | 14,026 | 14,672 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 180 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | Aug. 18, 2016 | |
STOCKHOLDERS' EQUITY [Abstract] | ||||
Authorized number of shares under stock repurchase program (in shares) | 500,000 | |||
Common stock repurchased during the period (in shares) | 328,481 | 6,000,000 | ||
Average cost of share repurchased (in dollars per share) | $ 81.62 | $ 24.44 | ||
Common stock repurchased during the period | $ 26.8 | $ 147.3 | ||
Shares repurchased to satisfy tax withholding obligation (in shares) | 29,736 | 30,447 | ||
Value of Shares repurchased to satisfy tax withholding obligation | $ 2.6 | $ 2.5 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Additional Disclosures [Abstract] | ||||
Vested share-based awards withheld to satisfy income tax obligations (in shares) | 29,736 | 30,447 | ||
Vested share-based awards withheld to satisfy income tax obligations | $ 2,600 | $ 2,500 | ||
Compensation Expense [Abstract] | ||||
Share-based compensation expense | $ 1,500 | $ 1,500 | $ 4,520 | 4,210 |
401 (k) Profit Sharing Plan [Abstract] | ||||
Period over which employer contribution is vested | 4 years | |||
Contribution to profit sharing plan | $ 500 | $ 400 | $ 1,200 | $ 1,100 |
Restricted Stock [Member] | ||||
Number of Shares [Rollforward] | ||||
Nonvested at beginning of period (in shares) | 203,828 | |||
Granted (in shares) | 72,961 | |||
Vested (in shares) | (90,356) | |||
Forfeited (in shares) | (349) | |||
Nonvested at end of period (in shares) | 186,084 | 186,084 | ||
Weighted Average Grant-date Fair Value [Rollforward] | ||||
Nonvested at beginning of period(in dollars per share) | $ 72.33 | |||
Granted (in dollars per share) | 86.24 | |||
Vested (in dollars per share) | 65.99 | |||
Forfeited (in dollars per share) | 76.87 | |||
Nonvested at end of period (in dollars per share) | $ 80.86 | $ 80.86 | ||
Compensation Expense [Abstract] | ||||
Unrecognized compensation expense | $ 11,800 | $ 11,800 | ||
Unrecognized compensation expense, period for recognition | 42 months | |||
2008 Director LTIP [Member] | Restricted Stock [Member] | ||||
Number of Shares [Rollforward] | ||||
Granted (in shares) | 5,692 | 6,383 | ||
2012 Employee LTIP [Member] | Restricted Stock [Member] | ||||
Number of Shares [Rollforward] | ||||
Granted (in shares) | 67,269 | 118,974 | ||
Additional Disclosures [Abstract] | ||||
Vested share-based awards withheld to satisfy income tax obligations (in shares) | 29,736 | |||
Vested share-based awards withheld to satisfy income tax obligations | $ 2,600 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
INCOME TAXES [Abstract] | ||||
Gross liability related to uncertain tax positions | $ 72 | $ 72 | ||
Impact of recognizing the unrecognized tax benefit | 106 | 106 | ||
Accrued interest on income taxes | 51 | $ 47 | 51 | $ 47 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Excess tax benefits and deficiencies | 8,687 | $ 7,348 | 27,310 | $ 24,582 |
New Accounting Pronouncement, Early Adoption, Effect [Member] | Restatement Adjustment [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Excess tax benefits and deficiencies | $ (500) | $ (500) |
FAIR VALUE OF FINANCIAL INSTR48
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | |
Assets [Abstract] | |||||
Money market funds | $ 29,851 | $ 29,851 | $ 39,509 | ||
Liabilities [Abstract] | |||||
Contingent consideration | 554 | 554 | 1,041 | ||
Adjustment to fair value of contingent consideration | 0 | $ 3 | 232 | $ 318 | |
Payments of contingent consideration | 700 | $ 1,200 | 700 | $ 1,200 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||
Assets [Abstract] | |||||
Money market funds | 29,851 | 29,851 | 39,509 | ||
Liabilities [Abstract] | |||||
Contingent consideration | 0 | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | |||||
Assets [Abstract] | |||||
Money market funds | 0 | 0 | 0 | ||
Liabilities [Abstract] | |||||
Contingent consideration | 0 | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | |||||
Assets [Abstract] | |||||
Money market funds | 0 | 0 | 0 | ||
Liabilities [Abstract] | |||||
Contingent consideration | $ 554 | $ 554 | $ 1,041 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($) | Mar. 31, 2016USD ($) | |
SEGMENT REPORTING [Abstract] | |||||
Number of business segments | Segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Sales of product and services | $ 317,391 | $ 287,859 | $ 968,799 | $ 871,814 | |
Financing revenue | 8,190 | 9,289 | 23,899 | 27,914 | |
Fee and other income | 1,076 | 1,496 | 3,924 | 5,068 | |
Net sales | 326,657 | 298,644 | 996,622 | 904,796 | |
Cost of sales, product and services | 251,729 | 231,503 | 769,780 | 700,429 | |
Direct lease costs | 1,142 | 3,081 | 3,459 | 9,256 | |
Cost of sales | 252,871 | 234,584 | 773,239 | 709,685 | |
Professional and other fees | 1,397 | 1,882 | 4,918 | 4,913 | |
Salaries and benefits | 42,385 | 37,372 | 124,479 | 108,326 | |
General and administrative expenses | 6,378 | 5,434 | 20,424 | 17,390 | |
Depreciation and amortization | 1,910 | 1,331 | 5,408 | 3,739 | |
Interest and financing costs | 409 | 396 | 1,158 | 1,371 | |
Operating expenses | 52,479 | 46,415 | 156,387 | 135,739 | |
Operating income | 21,307 | 17,645 | 66,996 | 59,372 | |
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||
Depreciation and amortization | 2,926 | 4,517 | 8,758 | 13,020 | |
Purchases of property, equipment and operating lease equipment | 4,131 | 1,390 | 7,300 | 17,008 | |
Selected Financial Data - Balance Sheet [Abstract] | |||||
Total assets | 736,678 | 630,434 | 736,678 | 630,434 | $ 616,680 |
Operating Segments [Member] | Technology [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales of product and services | 317,391 | 287,859 | 968,799 | 871,814 | |
Financing revenue | 0 | 0 | 0 | 0 | |
Fee and other income | 915 | 1,506 | 3,679 | 5,038 | |
Net sales | 318,306 | 289,365 | 972,478 | 876,852 | |
Cost of sales, product and services | 251,729 | 231,503 | 769,780 | 700,429 | |
Direct lease costs | 0 | 0 | 0 | 0 | |
Cost of sales | 251,729 | 231,503 | 769,780 | 700,429 | |
Professional and other fees | 1,216 | 1,608 | 4,138 | 4,175 | |
Salaries and benefits | 40,155 | 35,043 | 117,822 | 101,471 | |
General and administrative expenses | 6,409 | 5,203 | 19,335 | 16,653 | |
Depreciation and amortization | 1,908 | 1,327 | 5,400 | 3,728 | |
Interest and financing costs | 0 | 10 | 0 | 51 | |
Operating expenses | 49,688 | 43,191 | 146,695 | 126,078 | |
Operating income | 16,889 | 14,671 | 56,003 | 50,345 | |
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||
Depreciation and amortization | 1,941 | 1,365 | 5,494 | 3,831 | |
Purchases of property, equipment and operating lease equipment | 849 | 506 | 2,413 | 1,700 | |
Selected Financial Data - Balance Sheet [Abstract] | |||||
Total assets | 546,728 | 401,422 | 546,728 | 401,422 | |
Operating Segments [Member] | Financing [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales of product and services | 0 | 0 | 0 | 0 | |
Financing revenue | 8,190 | 9,289 | 23,899 | 27,914 | |
Fee and other income | 161 | (10) | 245 | 30 | |
Net sales | 8,351 | 9,279 | 24,144 | 27,944 | |
Cost of sales, product and services | 0 | 0 | 0 | 0 | |
Direct lease costs | 1,142 | 3,081 | 3,459 | 9,256 | |
Cost of sales | 1,142 | 3,081 | 3,459 | 9,256 | |
Professional and other fees | 181 | 274 | 780 | 738 | |
Salaries and benefits | 2,230 | 2,329 | 6,657 | 6,855 | |
General and administrative expenses | (31) | 231 | 1,089 | 737 | |
Depreciation and amortization | 2 | 4 | 8 | 11 | |
Interest and financing costs | 409 | 386 | 1,158 | 1,320 | |
Operating expenses | 2,791 | 3,224 | 9,692 | 9,661 | |
Operating income | 4,418 | 2,974 | 10,993 | 9,027 | |
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||
Depreciation and amortization | 985 | 3,152 | 3,264 | 9,189 | |
Purchases of property, equipment and operating lease equipment | 3,282 | 884 | 4,887 | 15,308 | |
Selected Financial Data - Balance Sheet [Abstract] | |||||
Total assets | $ 189,950 | $ 229,012 | $ 189,950 | $ 229,012 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | Dec. 06, 2016 | Dec. 04, 2015 | Dec. 31, 2016 | Mar. 31, 2016 |
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Goodwill | $ 49,472 | $ 42,151 | ||
IGX Acquisition [Member] | ||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Accounts receivable - trade, net | $ 8,457 | |||
Property and equipment | 81 | |||
Identified intangible assets | 8,710 | |||
Accounts payable and other current liabilities | (8,641) | |||
Deferred tax liability | (89) | |||
Total identifiable net assets | 8,518 | |||
Goodwill | 8,131 | |||
Total purchase consideration | 16,649 | |||
Schedule of Identified Intangible Assets [Abstract] | ||||
Goodwill expected to be deductible for tax purpose | 5,800 | |||
IGX Acquisition [Member] | Customer Relationships [Member] | ||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Identified intangible assets | $ 7,680 | |||
Schedule of Identified Intangible Assets [Abstract] | ||||
Estimated useful lives | 7 years | |||
IGX Acquisition [Member] | Trade Names [Member] | ||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Identified intangible assets | $ 520 | |||
Schedule of Identified Intangible Assets [Abstract] | ||||
Estimated useful lives | 10 years | |||
IGX Acquisition [Member] | Backlog [Member] | ||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Identified intangible assets | $ 510 | |||
Schedule of Identified Intangible Assets [Abstract] | ||||
Estimated useful lives | 1 year | |||
Consolidated IT Services [Member] | ||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Accounts receivable - trade, net | $ 7,501 | |||
Property and equipment | 1,045 | |||
Identified intangible assets | 3,340 | |||
Accounts payable and other current liabilities | (6,411) | |||
Total identifiable net assets | 5,475 | |||
Goodwill | 7,614 | |||
Total purchase consideration | 13,089 | |||
Schedule of Identified Intangible Assets [Abstract] | ||||
Cash portion of the acquisition | $ 9,500 | $ 4,000 | ||
Contingent consideration payout period | 2 years | |||
Contingent consideration cash periodic payment | $ 400 |