Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | May 22, 2017 | Sep. 30, 2016 | |
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 Public Float | $ 619,681,088 | ||
Entity Common Stock, Shares Outstanding | 14,162,000 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2017 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 109,760 | $ 94,766 |
Accounts receivable-trade, net | 266,029 | 234,628 |
Accounts receivable-other, net | 24,987 | 41,771 |
Inventories | 93,557 | 33,343 |
Financing receivables-net, current | 51,656 | 56,448 |
Deferred costs | 7,971 | 6,371 |
Other current assets | 43,364 | 10,649 |
Total current assets | 597,324 | 477,976 |
Financing receivables and operating leases - net | 71,883 | 75,906 |
Property, equipment and other assets | 11,956 | 8,644 |
Goodwill | 48,397 | 42,151 |
Other intangible assets-net | 12,160 | 12,003 |
TOTAL ASSETS | 741,720 | 616,680 |
Current liabilities: | ||
Accounts payable | 113,518 | 76,780 |
Accounts payable-floor plan | 132,612 | 121,893 |
Salaries and commissions payable | 18,878 | 14,981 |
Deferred revenue | 65,312 | 18,344 |
Recourse notes payable - current | 908 | 2,288 |
Non-recourse notes payable - current | 26,085 | 26,042 |
Other current liabilities | 19,179 | 13,118 |
Total current liabilities | 376,492 | 273,446 |
Recourse notes payable - long term | 0 | 1,054 |
Non-recourse notes payable - long term | 10,431 | 18,038 |
Deferred tax liability - net | 1,799 | 3,001 |
Other liabilities | 7,080 | 2,263 |
TOTAL LIABILITIES | 395,802 | 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; 14,161 outstanding at March 31, 2017 and 14,731 outstanding at March 31, 2016 | 142 | 132 |
Additional paid-in capital | 123,536 | 117,511 |
Treasury stock, at cost | 0 | (129,518) |
Retained earnings | 222,823 | 331,224 |
Accumulated other comprehensive income - foreign currency translation adjustment | (583) | (471) |
Total Stockholders' Equity | 345,918 | 318,878 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 741,720 | $ 616,680 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2017 | 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 outstanding (in shares) | 14,161 | 14,731 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||||||||||||||||||
Net sales | $ 332,767 | $ 326,657 | $ 371,462 | $ 298,503 | $ 299,403 | $ 298,644 | $ 336,286 | $ 269,866 | $ 1,329,389 | $ 1,204,199 | $ 1,143,282 | ||||||||
Cost of sales | 256,391 | 252,871 | 289,529 | 230,839 | 232,457 | 234,584 | 264,365 | 210,736 | 1,029,630 | 942,142 | 898,735 | ||||||||
Gross profit | 76,376 | 73,786 | 81,933 | 67,664 | 66,946 | 64,060 | 71,921 | 59,130 | 299,759 | 262,057 | 244,547 | ||||||||
Selling, general, and administrative expenses | 55,411 | 50,160 | 51,607 | 48,054 | 48,351 | 44,688 | 43,638 | 42,303 | 205,232 | 178,980 | 167,125 | ||||||||
Depreciation and amortization | 1,844 | 1,910 | 1,723 | 1,775 | 1,809 | 1,331 | 1,200 | 1,208 | 7,252 | 5,548 | 4,333 | ||||||||
Interest and financing costs | 385 | 409 | 400 | 349 | 407 | 396 | 422 | 553 | 1,543 | 1,778 | 2,379 | ||||||||
Operating expenses | 57,640 | 52,479 | 53,730 | 50,178 | 50,567 | 46,415 | 45,260 | 44,064 | 214,027 | 186,306 | 173,837 | ||||||||
Operating income | 18,736 | 21,307 | 28,203 | 17,486 | 16,379 | 17,645 | 26,661 | 15,066 | 85,732 | 75,751 | 70,710 | ||||||||
Other income | 0 | 0 | 380 | 0 | 380 | 0 | 7,603 | ||||||||||||
Earnings before tax | 18,736 | 21,307 | 28,583 | 17,486 | 16,379 | 17,645 | 26,661 | 15,066 | 86,112 | 75,751 | 78,313 | ||||||||
Provision for income taxes | 8,246 | 8,687 | 11,808 | 6,815 | 6,422 | 7,348 | 10,982 | 6,252 | 35,556 | 31,004 | 32,473 | ||||||||
Net earnings | $ 10,490 | $ 12,620 | $ 16,775 | $ 10,671 | $ 9,957 | $ 10,297 | $ 15,679 | $ 8,814 | $ 50,556 | $ 44,747 | $ 45,840 | ||||||||
Net earnings per common share-basic (in dollars per share) | $ 0.76 | [1] | $ 0.92 | [1] | $ 1.21 | [1] | $ 0.76 | [1] | $ 0.69 | [1] | $ 0.71 | [1] | $ 1.08 | [1] | $ 0.61 | [1] | $ 3.65 | $ 3.08 | $ 3.13 |
Net earnings per common share-diluted (in dollars per share) | $ 0.75 | [1] | $ 0.91 | [1] | $ 1.21 | [1] | $ 0.75 | [1] | $ 0.68 | [1] | $ 0.70 | [1] | $ 1.07 | [1] | $ 0.60 | [1] | $ 3.60 | $ 3.05 | $ 3.10 |
Weighted average common shares outstanding-basic (in shares) | 13,867 | 14,513 | 14,636 | ||||||||||||||||
Weighted average common shares outstanding-diluted (in shares) | 14,028 | 14,688 | 14,786 | ||||||||||||||||
[1] | Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
NET EARNINGS | $ 50,556 | $ 44,747 | $ 45,840 |
OTHER COMPREHENSIVE INCOME, NET OF TAX: | |||
Foreign currency translation adjustments | (112) | (232) | (425) |
Other comprehensive income (loss) | (112) | (232) | (425) |
TOTAL COMPREHENSIVE INCOME | $ 50,444 | $ 44,515 | $ 45,415 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flows From Operating Activities: | |||
Net earnings | $ 50,556 | $ 44,747 | $ 45,840 |
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 11,731 | 15,980 | 15,575 |
Reserve for credit losses, inventory obsolescence and sales returns | 749 | (216) | 125 |
Share-based compensation expense | 6,025 | 5,711 | 4,585 |
Deferred taxes | (1,196) | 3,515 | (1,863) |
Payments from lessees directly to lenders-operating leases | (1,724) | (4,646) | (7,685) |
Gain on disposal of property, equipment and operating lease equipment | (3,977) | (3,104) | (3,112) |
Gain on sale of financing receivables | (7,976) | (7,103) | (5,884) |
Gain on settlement | 0 | 0 | (1,434) |
Other income | (127) | ||
Other expense | 193 | 185 | |
Changes in: | |||
Accounts receivable - trade | (25,739) | (8,564) | 1,372 |
Accounts receivable - other | 8,507 | (2,498) | (2,407) |
Inventories | (60,022) | (13,405) | 3,161 |
Financing receivables - net | (5,824) | (9,310) | (19,560) |
Deferred costs, other intangible assets and other assets | (1,091) | 11,189 | (10,060) |
Accounts payable | 3,845 | (738) | (16,810) |
Salaries and commissions payable, deferred revenue and other liabilities | 58,959 | (17,633) | 12,695 |
Net cash provided by operating activities | 33,016 | 14,110 | 14,411 |
Cash Flows From Investing Activities: | |||
Maturities of supplemental benefit plan investments | 0 | 0 | 2,544 |
Proceeds from sale of property, equipment and operating lease equipment | 7,339 | 6,931 | 8,562 |
Purchases of property, equipment and operating lease equipment | (9,558) | (14,468) | (11,773) |
Purchases of assets to be leased or financed | (9,861) | (11,403) | (143) |
Issuance of financing receivables | (129,361) | (137,008) | (128,125) |
Repayments of financing receivables | 55,093 | 58,067 | 60,619 |
Proceeds from sale of financing receivables | 69,146 | 64,351 | 45,828 |
Premiums paid on life insurance | 0 | 0 | (47) |
Cash used in acquisitions, net of cash acquired | (9,143) | (16,649) | (8,057) |
Net cash used in investing activities | (26,345) | (50,179) | (30,592) |
Cash Flows From Financing Activities: | |||
Borrowings of non-recourse and recourse notes payable | 73,707 | 44,807 | 52,237 |
Repayments of non-recourse and recourse notes payable | (40,414) | (257) | (1,688) |
Repurchase of common stock | (30,493) | (11,339) | (37,685) |
Dividends paid | 0 | (80) | (90) |
Payments to settle financing of acquisitions | (1,142) | (1,158) | 0 |
Net borrowings (repayments) on floor plan facility | 6,156 | 22,475 | (518) |
Net cash provided by financing activities | 7,814 | 54,448 | 12,256 |
Effect of exchange rate changes on cash | 509 | 212 | (79) |
Net Increase (Decrease) in Cash and Cash Equivalents | 14,994 | 18,591 | (4,004) |
Cash and Cash Equivalents, Beginning of Period | 94,766 | 76,175 | 80,179 |
Cash and Cash Equivalents, End of Period | 109,760 | 94,766 | 76,175 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for interest | 38 | 84 | 239 |
Cash paid for income taxes | 32,240 | 29,789 | 35,436 |
Schedule of Non-Cash Investing and Financing Activities: | |||
Proceeds from sale of property, equipment, and operating lease equipment | 135 | 7,650 | 443 |
Purchase of property, equipment, and operating lease equipment | (2,398) | (10,562) | (432) |
Purchase of assets to be leased or financed | (6,702) | (9,827) | (20,022) |
Issuance of financing receivables | (217,244) | (101,718) | (73,881) |
Repayment of financing receivables | 19,421 | 16,873 | 0 |
Proceeds from sale of financing receivables | 215,227 | 98,753 | 73,881 |
Financing of acquisitions | (3,924) | 0 | (1,980) |
Borrowing of non-recourse and recourse notes payable | 35,533 | 42,840 | 0 |
Repayments of non-recourse and recourse notes payable | (29,217) | (29,059) | (34,584) |
Vesting of share-based compensation | $ 8,013 | $ 7,799 | $ 6,474 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Balance at Mar. 31, 2014 | $ 130 | $ 105,924 | $ (80,494) | $ 240,637 | $ 186 | $ 266,383 |
Balance (in shares) at Mar. 31, 2014 | 16,073 | |||||
Excess tax benefit of share - based compensation | $ 0 | 564 | 0 | 0 | 0 | 564 |
Issuance of restricted stock awards | $ 1 | 0 | 0 | 0 | 0 | 1 |
Issuance of restricted stock awards (in shares) | 176 | |||||
Share-based compensation | 4,584 | 0 | 0 | 0 | 4,584 | |
Repurchase of common stock | $ 0 | 0 | (37,685) | 0 | 0 | (37,685) |
Repurchase of common stock (in shares) | (1,470) | |||||
Net earnings | $ 0 | 0 | 0 | 45,840 | 0 | 45,840 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (425) | (425) |
Balance at Mar. 31, 2015 | $ 131 | 111,072 | (118,179) | 286,477 | (239) | 279,262 |
Balance (in shares) at Mar. 31, 2015 | 14,779 | |||||
Excess tax benefit of share - based compensation | $ 0 | 728 | 0 | 0 | 0 | 728 |
Issuance of restricted stock awards | $ 1 | 0 | 0 | 0 | 0 | 1 |
Issuance of restricted stock awards (in shares) | 246 | |||||
Share-based compensation | 5,711 | 0 | 0 | 0 | 5,711 | |
Repurchase of common stock | $ 0 | 0 | (11,339) | 0 | 0 | (11,339) |
Repurchase of common stock (in shares) | (294) | |||||
Net earnings | $ 0 | 0 | 0 | 44,747 | 0 | 44,747 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (232) | (232) |
Balance at Mar. 31, 2016 | $ 132 | 117,511 | (129,518) | 331,224 | (471) | $ 318,878 |
Balance (in shares) at Mar. 31, 2016 | 14,731 | 14,731 | ||||
Issuance of restricted stock awards | $ 1 | 0 | 0 | 0 | 0 | $ 1 |
Issuance of restricted stock awards (in shares) | 146 | |||||
Share-based compensation | 6,025 | 0 | 0 | 0 | 6,025 | |
Repurchase of common stock | $ 0 | 0 | (29,430) | 0 | 0 | (29,430) |
Repurchase of common stock (in shares) | (716) | |||||
Stock split effected in the form of a dividend | $ 71 | 0 | 0 | (71) | 0 | 0 |
Retirement of treasury stock | (62) | 0 | 158,948 | (158,886) | 0 | |
Net earnings | 0 | 0 | 0 | 50,556 | 0 | 50,556 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (112) | (112) |
Balance at Mar. 31, 2017 | $ 142 | $ 123,536 | $ 0 | $ 222,823 | $ (583) | $ 345,918 |
Balance (in shares) at Mar. 31, 2017 | 14,161 | 14,161 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2017 | |
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. e e e BASIS OF PRESENTATION — e USE OF ESTIMATES — The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Estimates are used when accounting for items and matters including, but not limited to, revenue recognition, residual values, vendor consideration, lease classification, goodwill and intangibles, reserves for credit losses, inventory obsolescence, and the recognition and measurement of income tax assets and other provisions and contingencies. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates. STOCK SPLIT — On March 31, 2017, we completed a two-for-one stock split in the form of a stock dividend. References made to outstanding shares or per share amounts in the accompanying financial statements and disclosures have been retroactively adjusted for this stock split. The number of authorized shares reflected on the consolidated balance sheets was not affected by the stock split. REVENUE RECOGNITION — The majority of our revenues are derived from the following sources: sales of third-party products, software, software assurance, maintenance and services; sales of our services and software and financing revenues. For all these revenue sources, we determine whether we are the principal or agent in accordance with Accounting Standards Codification (“Codification”) Topic, Revenue Recognition Principal Agent Considerations For arrangements with multiple elements, we allocate the total consideration to the deliverables based on an estimated selling price of our products and services. We determine the estimated selling price using cost plus a reasonable margin for each deliverable, which was based on historical data. Sales of Product and Services Generally, sales of third-party product and software are recognized on a gross basis with the selling price to the customer recorded as sales and the acquisition cost of the product or software recorded as cost of sales. Revenue is recognized when the title and risk of loss are passed to the customer, there is persuasive evidence of an arrangement for sale, delivery has occurred, the sales price is fixed or determinable and collectability is reasonably assured. Delivery for products is typically performed via drop-shipment by the vendor or distributor to our customers’ location, and for software via electronic delivery. The vast majority of our product and software sales are recognized upon delivery due to our sales terms with our customers and with our vendors. We provide e e We sell software assurance, subscription licenses, maintenance and service contracts where the services are performed by a third-party. Software assurance is a maintenance product that allows customers to upgrade at no additional cost to the latest technology if new applications are introduced during the period that the software assurance is in effect. As we enter into contracts with third-party service providers, we evaluate whether we are acting as a principal or agent in the transaction. As our customers are aware that the third-party service provider is to provide the services to them and that we are not responsible for the day-to-day provision of services in these arrangements, we concluded that we are acting as an agent and recognize revenue on a net basis at the date of sale. Under net revenue recognition, the cost paid to the vendor or third-party service provider is recorded as a reduction to sales, resulting in revenue being equal to the gross profit on the transaction. We present freight billed to our customers within sales and the related freight charged to us within cost of sales. Sales tax amounts collected from customers for remittance to governmental authorities are presented on a net basis. Financing Revenue We lease products to customers that are accounted for in accordance with Codification Topic, Leases The accounting for investments in leases and leased equipment is different depending on the type of lease. Each lease is classified as either a direct financing lease, sales-type lease, or operating lease, as appropriate. If a lease meets one or more of the following four criteria, the lease is classified as either a sales-type or direct financing lease; otherwise, it will be classified as an operating lease: · the lease transfers ownership of the property to the lessee by the end of the lease term; · the lease contains a bargain purchase option; · the lease term is equal to 75 percent or more of the estimated economic life of the leased property; or · the present value at the beginning of the lease term of the minimum lease payments equals or exceeds 90 percent of the fair value of the leased property at the inception of the lease. Revenue on direct financing and sales-type leases is deferred at the inception of the leases and is recognized over the term of the lease using the interest method. Revenue from operating leases is recognized ratably on a straight line basis over the term of the lease agreement. Codification Topic Transfers and Servicing, Sales of Financial Assets, Revenues on the sales of equipment at the end of a lease are recognized at the date of sale. The net gain or loss on sales of such equipment is presented within net sales in our consolidated statements of operations. Software License Sales We recognize revenue for the licensing and hosting of our software in accordance with Codification Topic Software, Revenue Recognition · there is persuasive evidence that an arrangement exists; · delivery has occurred; · no significant obligations by us remain, which relate to services essential to the functionality of the software with regard to implementation; · the sales price is determinable; and · it is probable that collection will occur. The majority of our agreements are fixed term license agreements and the revenue is recognized over the contract term. Revenue from the sale of a perpetual license is recognized upon installation of the software. We recognize revenue from hosting our proprietary software for our customers over the contract term. Our hosting arrangements do not contain a contractual right to take possession of the software. Revenue from Other Transactions Other sources of revenue are derived from: (1) income from events that occur after the initial sale of a financial asset; (2) remarketing fees; (3) agent fees received from various vendors in the technology segment; and (4) interest and other miscellaneous income. Reserves for Sales Returns Sales are reported net of allowances for returns which are maintained at a level believed by management to be adequate to absorb potential returns of sales of product and services in accordance with Codification Topic Revenue Product CASH AND CASH EQUIVALENTS — We consider all highly liquid investments, including those with an original maturity of three months or less at the date of acquisition, to be cash equivalents. Cash and cash equivalents consist primarily of interest-bearing accounts and money market funds that consist of short-term U.S. treasury securities. There were no restrictions on the withdrawal of funds from our money market accounts as of March 31, 2017 and March 31, 2016. FINANCING RECEIVABLES AND OPERATING LEASES — Financing receivables and operating leases consists of notes receivable, direct financing, sales-type leases and operating leases. The terms of lease and financing arrangements are typically between Notes receivables consist of software and services that we finance for our customers. Interest income is recognized using the effective interest method and reported within net sales in our consolidated statement of operations. At the inception of our direct financing and sales-type leases, we record the net investment in leases, which consists of the sum of the minimum lease payments, initial direct costs (direct financing leases only), and unguaranteed residual value (gross investment) less the unearned income. For direct financing leases, the difference between the gross investment and the cost of the leased equipment is recorded as unearned income at the inception of the lease. Under sales-type leases, the difference between the fair value and cost of the leased property plus initial direct costs (net margins) is recorded as unearned revenue at the inception of the lease. We recognize contingent rental income, if any, when the changes in the factors on which the contingent lease payments are based actually occur. At the inception of an operating lease, equipment under operating leases is recorded at cost and depreciated on a straight-line basis over its useful life to the estimated residual value. The estimated useful lives for equipment under operating leases ranges based on the nature of the equipment. The estimated useful life for information technology equipment is 36 to 84 months, while that of medical equipment is between 48 and 60 months. RESIDUAL VALUES — Residual values, representing the unguaranteed estimated value of equipment at the termination of a lease, are recorded at the inception of each lease. The estimated residual values vary, both in amount and as a percentage of the original equipment cost, and depend upon several factors, including the equipment type, vendor's discount, market conditions, term of the lease, equipment supply and demand and by new product announcements by vendors. Unguaranteed residual values for direct financing and sales-type leases are recorded at their net present value and the unearned income is amortized over the life of the lease using the interest method. The residual values for operating leases are included in the leased equipment’s net book value. Residual values are evaluated on a quarterly basis and any impairment, other than temporary, is recorded in the period in which the impairment is determined. No upward revision of residual values is made subsequent to lease inception. RESERVES FOR CREDIT LOSSES — Our receivables consist of trade and other accounts receivable and financing receivables. We maintain our reserves for credit losses at a level believed to be adequate to absorb potential losses inherent in the respective balances. The reserve for credit losses is increased by provisions for potential credit losses, which increases expenses, and decreased by subsequent recoveries. The reserve for credit losses is decreased by write-offs and reductions to the provision for potential credit losses. Accounts are either written off or written down when the loss is both probable and determinable. Management’s determination of the adequacy of the reserves for credit losses for accounts receivable is based on the age of the receivable balance, the customer’s credit quality rating, an evaluation of historical credit losses, current economic conditions, and other relevant factors. Management’s determination of the adequacy of the reserve for credit losses for financing receivables may be based on the following factors: an internally assigned credit quality rating, historical credit loss experience, current economic conditions, volume, growth, the composition of the lease portfolio, the fair value of the underlying collateral, and the funding status (i.e. not funded, funded on a recourse or partial recourse basis, or funded on non-recourse basis). We assign an internal credit quality rating to each customer at the inception of the lease based on the customer’s financial status, rating agency reports and other financial information. We update the internal credit quality rating at least annually or when an indicator of a change in credit quality arises, such as a delinquency or bankruptcy. Also, management regularly reviews financing receivables to assess whether any balances should be impaired or placed on nonaccrual status. CONCENTRATIONS OF RISK—Financial instruments that potentially subject us to concentrations of credit risk include cash and cash equivalents, short-term investments, accounts receivable, notes receivable and investments in direct financing and sales-type leases. Cash and cash equivalents and short-term investments are maintained principally with financial institutions in the United States, which have high credit ratings. Risk on accounts receivable, notes receivable and investments in direct financing and sales-type leases is reduced by the large number of diverse industries comprising our customer base and through the ongoing evaluation of collectability of our portfolio. Our credit risk is further mitigated through the underlying collateral and whether the lease is funded with recourse or non-recourse notes payable. A substantial portion of our sales are products from Cisco Systems, the successor companies to Hewlett-Packard, Hewlett Packard Enterprise and HP Inc., and NetApp, which represented approximately 47%, 6% and 5%, respectively, of our technology segment net sales for the year ended March 31, 2017, as compared to 49%, 7%, and 5%, respectively, of our technology segment net sales for the year ended March 31, 2016, and 49%, 8%, and 7%, respectively, for the year ended March 31, 2015. INVENTORIES — Inventories are stated at the lower of cost and net realizable value. Cost is determined using a weighted average cost method. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventories are shown net of allowance for obsolescence of $520 thousand and $147 thousand as of March 31, 2017 and 2016, respectively. DEFERRED COSTS AND DEFERRED REVENUES — Deferred costs include internal and third party costs associated with deferred revenue arrangements. Deferred revenue relates to professional, managed and hosting services. GOODWILL — We test goodwill for impairment on an annual basis, as of October 1, and between annual tests if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying amount. In a qualitative assessment, we assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. If, after assessing the totality of events or circumstances, we determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative goodwill impairment test is unnecessary. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then we perform the quantitative goodwill impairment test. We may also elect the unconditional option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the quantitative goodwill impairment test. In the quantitative impairment test, we compare the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. Conversely, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. CAPITALIZATION OF COSTS OF SOFTWARE FOR INTERNAL USE — We capitalize costs for the development of internal use software under the guidelines of Codification Topic Intangibles—Goodwill and Other Intangibles, Internal-Use Software CAPITALIZATION OF COSTS OF SOFTWARE TO BE MADE AVAILABLE TO CUSTOMERS — In accordance with Codification Topic Software, Costs of Software to Be Sold, Leased, or Marketed PROPERTY AND EQUIPMENT — Property and equipment are stated at cost, net of accumulated depreciation and amortization. Property and equipment obtained through an acquisition are stated at the fair market value as of the acquisition date. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets, which range from three to ten years. Information technology equipment is depreciated over three years. Perpetual software licenses are depreciated over five years. Furniture and certain fixtures are depreciated over five to ten years. Telecommunications equipment is depreciated over seven years. TREASURY STOCK — We account for treasury stock under the cost method and include treasury stock as a component of stockholders’ equity on the accompanying consolidated balance sheets. On March 31, 2017, we retired all outstanding shares of treasury stock. VENDOR CONSIDERATION — We receive payments and credits from vendors pursuant to volume incentive programs and shared marketing expense programs. Many of these programs extend over one or more quarters’ sales activities. Different programs have different vendor/program specific milestones to achieve. Amounts due from vendors as of March 31, 2017 and 2016 were $7.8 million and $15.6 million, respectively, which were included within accounts receivable-other, net in the accompanying balance sheets. Vendor consideration received pursuant to volume purchase incentive programs is allocated to inventory based on the applicable incentives from each vendor and is recorded in cost of sales, product and services, as the inventory is sold. If a rebate is probable and reasonably estimable, it is recognized based on a systematic and rational allocation of the cash consideration offered to the underlying transactions that result in our progress toward earning the rebate. If a rebate is not probable and reasonably estimable, it is recognized as the milestones are achieved. Vendor consideration received pursuant to shared marketing expense programs is recorded as a reduction of the related selling and administrative expenses in the period the program takes place only if the consideration represents a reimbursement of specific, incremental, identifiable costs. Consideration that exceeds the specific, incremental, identifiable costs is classified as a reduction of cost of sales, product and services. SHARE-BASED COMPENSATION — We account for share-based compensation in accordance with Codification Topic Compensation—Stock Compensation INCOME TAXES — Deferred income taxes are accounted for in accordance with Codification Topic Income Taxes In addition, we account for uncertain tax positions in accordance with Codification Topic Income Taxes BUSINESS COMBINATIONS — We account for business combinations using the acquisition method in accordance with Codification Topic Business Combinations Any premium paid over the fair value of the net tangible and intangible assets of the acquired business is recorded as goodwill. We recognize a gain in our income statement to the extent the purchase price is less than the fair value of assets acquired and liabilities assumed. The results of operations for an acquired company are included in our financial statements from the date of acquisition. FAIR VALUE MEASUREMENT — We follow the guidance in Codification Topic Fair Value Measurements Fair Value Measurements and Disclosures · Level 1 – Observable inputs such as quoted prices for identical assets and liabilities in active markets; · Level 2 – Inputs other than quoted prices, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. · Level 3 – Unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. As of March 31, 2017, we measure money market funds and contingent consideration at fair value on a recurring basis, which is based on quoted net asset values. FINANCIAL INSTRUMENTS — For financial instruments such as cash, short-term investments, accounts receivables, accounts payable and other current liabilities, we consider the recorded value of the financial instruments to approximate the fair value due to their short maturities. At March 31, 2017, the carrying amount of notes receivables, recourse and non-recourse payables were $45.4 million, $0.9 million and $36.5 million, respectively and the fair value of notes receivables, recourse and non-recourse payables were $44.0 million, $0.9 million and $36.4 million, respectively. At March 31, 2016, the carrying amount of notes receivables, recourse and non-recourse payables were $43.4 million, $3.3 million and $44.1 million, respectively and the fair value of notes receivables, recourse and non-recourse payables were $42.4 million, $3.3 million and $43.9 million. FOREIGN CURRENCY TRANSLATION— The Company’s functional currency is the U.S. dollar. The functional currency of the Company’s international operating subsidiaries is generally the same as the corresponding local currency. Assets and liabilities of the international operating subsidiaries are translated at the spot rate in effect at the applicable reporting date. Revenues and expenses of the international operating subsidiaries are translated at the average exchange rates in effect during the applicable period. The resulting foreign currency translation adjustment is recorded as accumulated other comprehensive loss, which is reflected as a separate component of stockholders’ equity EARNINGS PER SHARE — Basic earnings per share is calculated by dividing net earnings attributable to common stockholders by the basic weighted average number of shares of common stock outstanding during each period. Diluted earnings per share reflects the potential dilution of securities that could participate in our earnings, including incremental shares issuable upon the assumed exercise of “in-the-money” stock options and other common stock equivalents during each period. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Mar. 31, 2017 | |
RECENTLY ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENT ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS — Stock Compensation In January 2017, the FASB issued ASU 2017-04, Intangibles- Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This update eliminates Step 2 from the goodwill impairment test, which had required the assessment of fair value of individual assets and liabilities of a reporting unit to measure goodwill impairments. Goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. As permitted, we elected to early adopt this update for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this update did not impact our consolidated financial statements. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED — In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which, along with amendments issued in 2015 and 2016, will replace most existing revenue recognition guidance under GAAP and eliminate industry specific guidance. The core principle of the new guidance is that an entity should recognize revenue for the transfer of goods and services equal to an amount it expects to be entitled to receive for those goods and services. Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date The new guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). We have established a cross-functional implementation team and utilized a bottom-up approach to analyze the impact of the standard on our arrangements by reviewing the current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to our revenue contracts. The implementation team has reported the findings and progress of the project to management and the Audit Committee on a regular basis. We will adopt the guidance in our quarter ending June 30, 2018. We currently prefer to adopt the standard using the full retrospective method; however, our ability to do so is dependent on many factors, including the completion of our analysis of information necessary to recast prior period financial statements. Based on these and other factors, we may decide to use the cumulative catch-up transition method. Our analysis and evaluation of the new standard will continue through its effective date in the first quarter of 2018. A substantial amount of work remains to be completed due to the complexity of the new standard, the application of judgment and the requirement for the use of estimates in applying the new standard, as well as the volume of our client portfolio and the related terms and conditions of our contracts that must be reviewed. 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 | 12 Months Ended |
Mar. 31, 2017 | |
FINANCING RECEIVABLES AND OPERATING LEASES [Abstract] | |
FINANCING RECEIVABLES AND OPERATING LEASES | 3. FINANCING RECEIVABLES AND OPERATING LEASES FINANCING RECEIVABLES—NET Our financing receivables, net consist of the following (in thousands): March 31, 2017 Notes Lease-Related Total Financing Minimum payments $ 48,524 $ 57,872 $ 106,396 Estimated unguaranteed residual value (1) - 18,273 18,273 Initial direct costs, net of amortization (2) 279 341 620 Unearned income - (5,913 ) (5,913 ) Reserve for credit losses (3) (3,434 ) (679 ) (4,113 ) Total, net $ 45,369 $ 69,894 $ 115,263 Reported as: Current $ 23,780 $ 27,876 $ 51,656 Long-term 21,589 42,018 63,607 Total, net $ 45,369 $ 69,894 $ 115,263 (1) Includes estimated unguaranteed residual values of $12,677 thousand for direct financing leases, which have been accounted for as sales under Codification Topic Transfers and Servicing (2) Initial direct costs are shown net of amortization of $510 thousand. (3) For details on reserve for credit losses, refer to Note 5, “Reserves for Credit Losses.” March 31, 2016 Notes Lease-Related Total Financing 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 accounted for as sales under Codification Topic Transfers and Servicing (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.” Future scheduled minimum lease payments for investments in direct financing and sales-type leases as of March 31, 2017 are as follows (in thousands): Year ending March 31, 2018 $ 30,590 2019 17,172 2020 7,228 2021 2,364 2022 and thereafter 518 Total $ 57,872 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): March 31, March 31, Cost of equipment under operating leases $ 16,725 $ 36,635 Accumulated depreciation (8,449 ) (18,897 ) Investment in operating lease equipment—net (1) $ 8,276 $ 17,738 (1) Amounts include estimated unguaranteed residual values of $1,117 thousand and $3,417 thousand as of March 31, 2017 and 2016, respectively. Future scheduled minimum lease rental payments as of March 31, 2017 are as follows (in thousands): Year ending March 31, 2018 $ 2,652 2019 1,492 2020 115 2021 3 2022 and thereafter - Total $ 4,262 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, 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. For the years ended March 31, 2017, 2016, and 2015, we recognized net gains of $8.1 million, $7.4 million, and $5.9 million, respectively, and total proceeds from these sales were $339.4 million, $223.3 million, and $181.3 million, 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. As of March 31, 2017 and 2016, we had deferred revenue of $0.5 million and $0.3 million, respectively, for servicing obligations. 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 elects to early terminate the lease. As of March 31, 2017, 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 | 12 Months Ended |
Mar. 31, 2017 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 4. GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL The following table summarizes the changes in the carrying amount of goodwill for the years ended March 31, 2017 and March 31, 2016, respectively (in thousands): Year Ended March 31, 2017 Year Ended March 31, 2016 Goodwill Accumulated Impairment Loss Net Carrying Amount Goodwill Accumulated Impairment Loss Net Carrying Amount Beginning Balance $ 50,824 $ (8,673 ) $ 42,151 $ 42,785 $ (8,673 ) $ 34,112 Acquisitions $ 6,507 $ - $ 6,507 $ 8,131 $ - $ 8,131 Foreign currency translations (261 ) - (261 ) (92 ) - (92 ) Ending Balance $ 57,070 $ (8,673 ) $ 48,397 $ 50,824 $ (8,673 ) $ 42,151 All of our goodwill as of March 31, 2017 and March 31, 2016 was assigned to our technology segment. See Note 14, “Business Combinations” for additional information regarding our acquisitions. We We performed our annual test for impairment for fiscal year 2016 as of October 1, 2015. We performed a qualitative assessment of 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 Our other intangible assets consist of the following at March 31, 2017 and March 31, 2016 (in thousands): March 31, 2017 March 31, 2016 Gross Carrying Amount Accumulated Amortization / Impairment Loss Net Carrying Amount Gross Carrying Amount Accumulated Amortization / Impairment Loss Net Carrying Amount Customer relationships & other intangibles $ 23,373 $ (12,553 ) $ 10,820 $ 20,401 $ (9,193 ) $ 11,208 Capitalized software development 3,649 (2,310 ) 1,339 2,709 (1,914 ) 795 Total $ 27,022 $ (14,863 ) $ 12,159 $ 23,110 $ (11,107 ) $ 12,003 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 was $4.4 million, $3.3 million, and $2.4 million for the years ended March 31, 2017, 2016 and 2015, respectively. Amortization expense is estimated to be $5.0 million, $3.0 million, $2.2 million, $1.5 million, and $1.1 million for the years ended March 31, 2018, 2019, 2020, 2021, and 2022, respectively. |
RESERVES FOR CREDIT LOSSES
RESERVES FOR CREDIT LOSSES | 12 Months Ended |
Mar. 31, 2017 | |
RESERVES FOR CREDIT LOSSES [Abstract] | |
RESERVES FOR CREDIT LOSSES | 5. RESERVES FOR CREDIT LOSSES Activity in our reserves for credit losses for the years ended March 31, 2017, 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 216 65 (4 ) 277 Write-offs and other (64 ) (12 ) (2 ) (78 ) Balance March 31, 2017 $ 1,279 $ 3,434 $ 679 $ 5,392 Accounts Receivable Notes Receivable Lease-Related Receivables Total Balance April 1, 2015 $ 1,169 $ 3,573 $ 881 $ 5,623 Provision for credit losses 126 (172 ) (196 ) (242 ) Write-offs and other (168 ) (20 ) - (188 ) Balance March 31, 2016 $ 1,127 $ 3,381 $ 685 $ 5,193 Accounts Receivable Notes Receivable Lease-Related Receivables Total Balance April 1, 2014 $ 1,364 $ 3,364 $ 1,024 $ 5,752 Provision for credit losses 28 209 (112 ) 125 Write-offs and other (223 ) - (31 ) (254 ) Balance March 31, 2015 $ 1,169 $ 3,573 $ 881 $ 5,623 Our reserve for credit losses and minimum lease payments associated with our investment in direct financing and sales- type lease balances disaggregated on the basis of our impairment method were as follows (in thousands): March 31, 2017 March 31, 2016 Notes Receivable Lease- Related Receivables Notes Receivable Lease- Related Receivables Reserves for credit losses: Ending balance: collectively evaluated for impairment $ 348 $ 556 $ 279 $ 562 Ending balance: individually evaluated for impairment 3,086 123 3,102 123 Ending balance $ 3,434 $ 679 $ 3,381 $ 685 Minimum payments: Ending balance: collectively evaluated for impairment $ 45,438 $ 57,730 $ 41,340 $ 66,161 Ending balance: individually evaluated for impairment 3,086 142 3,102 142 Ending balance $ 48,524 $ 57,872 $ 44,442 $ 66,303 The net credit exposure for the balance evaluated individually for impairment as of March 31, 2017 was $3.2 million, which is related to a customer in bankruptcy. The note and lease receivables associated with this customer are on non-accrual status. 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 March 31, 2017 and 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 March 31, 2017 High CQR $ 379 $ 224 $ 230 $ 833 $ 406 $ 32,532 $ 33,771 $ (2,362 ) $ (12,924 ) $ 18,485 Average CQR 113 20 113 246 91 23,622 23,959 (1,556 ) (13,353 ) 9,050 Low CQR - - 142 142 - - 142 (19 ) - 123 Total $ 492 $ 244 $ 485 $ 1,221 $ 497 $ 56,154 $ 57,872 $ (3,937 ) $ (26,277 ) $ 27,658 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 March 31, 2017 and 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 March 31, 2017 High CQR $ 183 $ 663 $ 755 $ 1,601 $ 1,165 $ 23,359 $ 26,125 $ (12,003 ) $ 14,122 Average CQR 28 5 - 33 555 18,725 19,313 (13,732 ) 5,581 Low CQR - - 3,086 3,086 - - 3,086 - 3,086 Total $ 211 $ 668 $ 3,841 $ 4,720 $ 1,720 $ 42,084 $ 48,524 $ (25,735 ) $ 22,789 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 high 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, AND OTHER
PROPERTY, EQUIPMENT, AND OTHER ASSETS AND LIABILITIES | 12 Months Ended |
Mar. 31, 2017 | |
PROPERTY, EQUIPMENT, AND OTHER ASSETS AND LIABILITIES [Abstract] | |
PROPERTY, EQUIPMENT, AND OTHER ASSETS AND LIABILITIES | 6. PROPERTY, EQUIPMENT, AND OTHER ASSETS AND LIABILITIES PROPERTY AND EQUIPMENT NET Property and equipment—net consists of the following (in thousands): March 31, March 31, Furniture, fixtures and equipment $ 17,132 $ 15,033 Vehicles 343 370 Capitalized software 4,342 4,018 Leasehold improvements 4,680 3,978 Total assets 26,497 23,399 Accumulated depreciation and amortization (19,807 ) (17,133 ) Property and equipment - net $ 6,690 $ 6,266 For the years ended March 31, 2017, 2016 and 2015, depreciation expense on property and equipment was $3.0 million, $2.3 million, and $1.5 million, respectively. OTHER ASSETS AND LIABILITIES Our other assets and liabilities consist of the following (in thousands): March 31, March 31, Other current assets: Deposits & funds held in escrow $ 39,161 $ 3,116 Prepaid assets 3,388 6,683 Other 815 850 Total other current assets $ 43,364 $ 10,649 Other assets: Deferred costs $ 3,536 $ 1,831 Property and equipment, net 6,690 6,266 Other 1,730 547 Total other assets - long term $ 11,956 $ 8,644 March 31, March 31, Other current liabilities: Accrued expenses $ 7,450 $ 7,109 Accrued income taxes payable 1,761 - Other 9,968 6,009 Total other current liabilities $ 19,179 $ 13,118 Other liabilities: Deferred revenue $ 4,704 $ 1,866 Other 2,376 397 Total other liabilities - long term $ 7,080 $ 2,263 As of March 31, 2017 and 2016 we had a deposits and funds held in escrow of $39.2 million and $3.1 million, respectively. These balances relate to financial assets that were sold to third-party banks. In conjunction with those sales, a portion of the proceeds were placed in escrow and will be released to us upon payment of outstanding invoices related to the underlying financing arrangements that were sold. |
NOTES PAYABLE AND CREDIT FACILI
NOTES PAYABLE AND CREDIT FACILITY | 12 Months Ended |
Mar. 31, 2017 | |
NOTES PAYABLE AND CREDIT FACILITY [Abstract] | |
NOTES PAYABLE AND CREDIT FACILITY | 7. NOTES PAYABLE AND CREDIT FACILITY Recourse and non-recourse obligations consist of the following (in thousands): March 31, March 31, Recourse notes payable with interest rates ranging from 3.20% and 4.13% at March 31, 2017 and ranging from 2.70% and 4.13% at March 31, 2016. Current $ 908 $ 2,288 Long-term - 1,054 Total recourse notes payable $ 908 $ 3,342 Non-recourse notes payable secured by financing receivables and investments in operating leases with interest rates ranging from 2.0% to 7.75% at March 31, 2017 and ranging from 1.70% to 8.50% as of March 31, 2016. Current $ 26,085 $ 26,042 Long-term 10,431 18,038 Total non-recourse notes payable $ 36,516 $ 44,080 Principal and interest payments on the 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 3.73% and 3.13%, as of March 31, 2017 and March 31, 2016, respectively. The weighted average interest rate for our recourse notes payable was 3.45% and 3.24%, as of March 31, 2017 and March 31, 2016, respectively. Under recourse financing, in the event of a default by a customer, the lender has recourse against 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. During the year ended March 31, 2015, we entered into an agreement to repurchase the rights, title and interest to payments due under a financing agreement. The financing agreement was previously assigned to a third party financial institution and accounted for as a secured borrowing. In conjunction with the repurchase agreement, we recognized a gain of $1.4 million, which is presented within other income in our consolidated statement of operations Our technology segment, through our subsidiary e The credit facility has full recourse to e e e e e e e The facility provided by WFCDF requires a guaranty of $10.5 million by e e Recourse and non-recourse notes payable as of March 31, 2017, mature as follows (in thousands): Recourse Notes Non-Recourse Year ending March 31, 2018 $ 908 $ 26,085 2019 - 7,781 2020 - 1,938 2021 - 712 2022 and thereafter - - $ 908 $ 36,516 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 8. COMMITMENTS AND CONTINGENCIES We lease office space and certain office equipment to conduct our business. Annual rent expense relating to these operating leases was $5.6 million, $4.9 million, and $4.7 million for the years ended March 31, 2017, 2016 and 2015, respectively. As of March 31, 2017, the future minimum lease payments are due as follows (in thousands): Contractual Obligations (in thousands) Year ending March 31, 2018 $ 4,715 2019 2,460 2020 1,155 2021 595 2022 and thereafter 124 Operating lease obligations (1) $ 9,049 (1) Excluding taxes, insurance and common area maintenance charges. 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 a plaintiff, or may be named as a defendant, in legal actions arising from our normal business activities, none of which to date 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, government, tax or customer 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 accrue for costs related to contingencies when a loss is probable and the amount is reasonably estimable. During the year ended March 31, 2017, 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 consolidated statement of operations. We filed a claim in a class action suit in the United States District Court for the Northern District of California. The suit alleged that ten groups of companies conspired to fix, raise, maintain or stabilize prices of certain flat panels used in many flat screen televisions, monitors and notebook computers. On August 6, 2014, the Claims Administrator issued to us a Notice of Claim Final Determination. On October 20, 2014, the court issued an order directing that approved claims be paid, and on October 31, 2014, we received a payment of $6.2 million, which is presented within other income in our consolidated statement of operations. Employment Contracts and Severance Plans We have employment contracts with, and plans covering certain members of management under which severance payments would become payable in the event of specified terminations without cause or terminations under certain circumstances after a change in control. In addition, vesting of outstanding nonvested restricted stock awards would accelerate following a change in control. If severance payments under the current employment agreements or plan payments were to become payable, the severance payments would generally range from twelve to twenty-six months of salary. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Mar. 31, 2017 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 9. EARNINGS PER SHARE Basic earnings per share is computed by dividing net earnings attributable to common shares by the weighted average number of common shares outstanding for the period. Diluted net earnings per share include the potential dilution of securities that could participate in our earnings, but not securities that are anti-dilutive. Certain unvested shares of restricted stock awards (“RSAs”) contain non-forfeitable rights to dividends, whether paid or unpaid. As a result, these RSAs are considered participating securities because their holders have the right to participate in earnings with common stockholders. We use the two-class method to allocate net income between common shares and other participating securities. As of March 31, 2017 and 2016, we had no unvested shares of RSAs that contained non-forfeitable rights to dividends. We no longer grant RSAs that contain non-forfeitable rights to dividends. The following table provides a reconciliation of the numerators and denominators used to calculate basic and diluted net earnings per common share as disclosed in our consolidated statements of operations for the fiscal years ended March 31, 2017, 2016 and 2015 (in thousands, except per share data). Organization and Summary of Significant Accounting Policies ” Year Ended March 31, 2017 2016 2015 Calculation of earnings per common share - basic: Net earnings $ 50,556 $ 44,747 $ 45,840 Net earnings attributable to participating securities - - 59 Net earnings attributable to common shareholders $ 50,556 $ 44,747 $ 45,781 Calculation of earnings per common share - diluted: Net earnings attributable to common shareholders— basic $ 50,556 $ 44,747 $ 45,781 Add: undistributed earnings attributable to participating securities - - 1 Net earnings attributable to common shareholders— diluted $ 50,556 $ 44,747 $ 45,782 Basic and diluted common shares outstanding: Weighted average common shares outstanding — basic 13,867 14,513 14,636 Effect of dilutive shares 161 175 150 Weighted average shares common outstanding — diluted 14,028 14,688 14,786 Earnings per common share - basic $ 3.65 $ 3.08 $ 3.13 Earnings per common share - diluted $ 3.60 $ 3.05 $ 3.10 There were no unexercised stock options during the years ended March 31, 2017, 2016 and 2015. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Mar. 31, 2017 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY | 10. STOCKHOLDERS’ EQUITY Stock Split and Treasury Stock On January 27, 2017, our Board of Directors (“Board”) approved a two-for-one stock split of our common stock in the form of a stock dividend paid on March 31, 2017 to shareholders of record as of close of business on February 16, 2017. All share and per share information have been retroactively adjusted to reflect the stock split and the incremental par value of the newly issued shares was recorded with the offset to additional paid-in capital. On March 31, 2017, we retired 6.2 million shares of treasury stock. The retired stock had a carrying value of $158.9 million, which was deducted from common stock, for the par value of the retired shares, and from retained earnings, for the excess of cost over the par value. Share Repurchase Plan 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. This new authorization replaced the company’s previous repurchase plan During the year ended March 31, 2017, retroactively restated for the stock split, we purchased 656,962 shares of our outstanding common stock at an average cost of $40.81 per share for a total purchase price of $26.8 million under the share repurchase plan. We also purchased 59,472 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 year ended March 31, 2016, retroactively restated for the stock split, we repurchased 232,604 shares of our outstanding common stock at an average cost of $38.11 per share for a total purchase price of $8.9 million under the share repurchase plans. We also purchased 60,894 shares of common stock to satisfy tax withholding obligations to the vesting of employees’ restricted stock. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Mar. 31, 2017 | |
SHARE-BASED COMPENSATION [Abstract] | |
SHARE-BASED COMPENSATION | 11. SHARE-BASED COMPENSATION Share-Based Plans In each of the years ended March 31, 2017, 2016 and 2015, we issued share-based payment awards and had outstanding share-based payment awards under the following 2008 Director LTIP On September 15, 2008, our stockholders approved the 2008 Director LTIP that was adopted by the Board on June 25, 2008. Under the 2008 Director LTIP, 500,000 shares were authorized for grant to non-employee directors. The purpose of the 2008 Director LTIP is to align the economic interests of the directors with the interests of stockholders by including equity as a component of pay and to attract, motivate and retain experienced and knowledgeable directors. Each director receives an annual grant of restricted stock having a grant-date fair value equal to the cash compensation earned by an outside director during our fiscal year ended immediately before the respective annual grant-date. Directors may elect to receive their cash compensation in restricted stock. These restricted shares are prohibited from being sold, transferred, assigned, pledged or otherwise encumbered or disposed of. The shares vest half on the one-year anniversary and half on the second-year anniversary from the date of the grant. 2012 Employee LTIP On September 13, 2012, our stockholders approved the 2012 Employee LTIP that was adopted by the Board on July 10, 2012. Under the 2012 Employee LTIP, 1,500,000 shares were authorized for grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, or other share-based awards to e e e Stock Option Activity During the years ended March 31, 2017, 2016, and 2015, we did not grant any stock options, nor did we have any outstanding stock options. Restricted Stock Activity As of March 31, 2017, we have granted 257,608 shares under the 2008 Director LTIP and 683,046 restricted shares under the 2012 Employee LTIP. A summary of the non-vested restricted shares for year ended March 31, 2017 as follows: Number of Shares Weighted Average Grant- date Fair Value Nonvested April 1, 2016 407,603 $ 36.09 Granted 146,244 $ 43.15 Vested (181,461 ) $ 33.01 Forfeited (697 ) $ 38.45 Nonvested March 31, 2017 371,689 $ 40.45 In each of the years ending March 31, 2017, 2016 and 2015, we used the closing stock price on the grant date or, if the grant date falls on a date the stock was not traded, the previous day’s closing stock price for the fair value of the award. The weighted-average grant date fair value of restricted shares granted during the years ended March 31, 2017, 2016, and 2015 was $43.15, $40.89, and $28.59, respectively. The aggregated fair value of restricted shares that vested during the years ended March 31, 2017, 2016, and 2015 was $6.0 million, $4.7 million, and $4.0 million, respectively. Upon each vesting period of the restricted stock awards to employees, participants are subject to minimum tax withholding obligations. The 2008 Director LTIP and the 2012 Employee LTIP allow the Company to withhold a sufficient number of shares due to the participant to satisfy their minimum tax withholding obligations. For the year ended March 31, 2017, we withheld 59,472 shares of common stock, at a value of $2.6 million, which was included in treasury stock. For the year ended March 31, 2016, the Company had withheld 60,894 shares of common stock, retroactively adjusted, at a value of $2.5 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. We account for forfeitures when they occur. There are no additional conditions for vesting other than service conditions. During the years ended March 31, 2017, 2016 and 2015, we recognized $6.0 million, $5.7 million and $4.6 million, respectively, of total share-based compensation expense and recognized tax benefit related thereto of $2.5 million, $2.3 million and $1.9 million, respectively. As of March 31, 2017, the total unrecognized compensation expense related to non-vested restricted stock was $10.3 million, which is expected to be recognized over a weighted-average period of 29 months. We also provide our employees with a contributory 401(k) profit sharing plan. For the years ended March 31, 2017, 2016 and 2015, our employer contributions for the plan were approximately $1.9 million, $1.4 million and $1.4 million, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2017 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 12. INCOME TAXES We account for our tax positions in accordance with Codification Topic Income Taxes Our total gross unrecognized tax benefits recorded for uncertain income tax, and interest and penalties thereon, were negligible as of March 31, 2017, and March 31, 2016. We had no additions or reductions to our gross on certain income tax positions during the year ended March 31, 2017. We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. We file income tax returns, including returns for our subsidiaries, with federal, state, local, and foreign jurisdictions. Tax years 2014, 2015 and 2016 are subjected to examination by federal and state taxing authorities. Various state and local income tax returns are also under examination by taxing authorities. We do not believe that the outcome of any examination will have a material impact on our financial statements. A reconciliation of income taxes computed at the statutory federal income tax rate of 35% to the provision for income taxes included in the consolidated statements of operations is as follows (in thousands, except percentages): Year Ended March 31, 2017 2016 2015 Statutory federal income tax rate 35 % 35 % 35 % Income tax expense computed at the U.S. statutory federal rate $ 30,134 $ 26,513 $ 27,410 State income tax expense—net of federal benefit 4,193 3,544 4,193 Non-deductible executive compensation 512 331 222 Other 717 616 648 Provision for income taxes $ 35,556 $ 31,004 $ 32,473 Effective income tax rate 41.3 % 40.9 % 41.5 % The components of the provision for income taxes are as follows (in thousands): Year Ended March 31, 2017 2016 2015 Current: Federal $ 29,619 $ 21,361 $ 27,665 State 7,001 6,114 6,667 Foreign 132 13 3 Total current expense 36,752 27,488 34,335 Deferred: Federal (622 ) 3,727 (1,591 ) State (432 ) (211 ) (271 ) Foreign (142 ) - - Total deferred expense (benefit) (1,196 ) 3,516 (1,862 ) Provision for income taxes $ 35,556 $ 31,004 $ 32,473 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities were as follows (in thousands): March 31, 2017 2016 Deferred Tax Assets: Accrued vacation $ 2,217 $ 2,116 Deferred revenue 3,107 1,046 Foreign net operating loss carryforward 462 461 Reserve for credit losses 2,026 1,929 Restricted stock 1,779 1,778 Other accruals and reserves 2,555 1,556 Other credits and carryforwards 1,166 1,275 Gross deferred tax assets 13,312 10,161 Less: valuation allowance (1,270 ) (1,270 ) Net deferred tax assets 12,042 8,891 Deferred Tax Liabilities: Basis difference in fixed assets (1,399 ) (1,170 ) Basis difference in operating leases (9,926 ) (7,749 ) Basis difference in tax deductible goodwill (2,516 ) (2,973 ) Total deferred tax liabilities (13,841 ) (11,892 ) Net deferred tax liabilities $ (1,799 ) $ (3,001 ) The effective income tax rate for the year ended March 31, 2017 was 41.3%, compared to 40.9% of the previous fiscal year. As of March 31, 2017, we have state capital loss carryforwards of approximately $1.3 million, which have been fully reserved. The valuation allowance resulted from management's determination, based on available evidence, that it was more likely than not that the state capital loss deferred tax asset balance may not be realized. If not realized, the state capital loss carryforwards will generally expire in 5 years. As of March 31, 2017, we have a foreign net operating loss of approximately $0.5 million related to operations in the United Kingdom. No valuation allowance was recognized as a result of management's determination, based on available evidence, that it was more likely than not that the foreign net operating loss deferred tax asset balance will be realized. The foreign net operating loss is not set to expire. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Mar. 31, 2017 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | 13. FAIR VALUE MEASUREMENTS We account for the fair values of our assets and liabilities in accordance with Codification Topic Fair Value Measurement and Disclosure. The following tables summarize the fair value hierarchy of our financial instruments as of March 31, 2017 and 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 March 31, 2017 Assets: Money market funds $ 50,866 $ 50,866 $ - $ - Liabilities: Contingent consideration $ 554 $ - $ - $ 554 March 31, 2016 Assets: Money market funds $ 39,509 $ 39,509 $ - $ - Liabilities: Contingent consideration $ 1,041 $ - $ - $ 1,041 For the year ended March 31, 2017, we recorded adjustments that increased the fair value of our liability for contingent consideration by $232 thousand. We recorded an adjustment to increase by $369 thousand the fair value of the contingent consideration during the year ended March 31, 2016. These adjustments were presented within general and administrative expenses in our consolidated statement of operations. During the years ended March 31, 2017 and 2016, we paid $0.7 million and $1.2 million, respectively, to satisfy the current obligations of the contingent consideration arrangement. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Mar. 31, 2017 | |
BUSINESS COMBINATIONS [Abstract] | |
BUSINESS COMBINATIONS | 14. BUSINESS COMBINATIONS OneCloud Consulting, Inc On May 17, 2017, our subsidiary e base. Total consideration includes $8.8 million paid in cash at closing and contingent consideration up to $4.5 million to be paid over three years. Our initial accounting for the acquisition is not complete as further time is needed to properly value all the acquired assets and assumed liabilities. Consolidated IT Services acquisition On December 6, 2016, our subsidiary e e The total purchase price was $13.1 million consisting of $9.5 million paid in cash at closing and the present value of $4.0 million that is being paid in cash in equal quarterly installments over 2 years, less $0.4 million that was paid back to us on February 7, 2017 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 $ 7,491 Property and equipment 1,045 Identified intangible assets 3,810 Accounts payable and other current liabilities (5,786 ) Total identifiable net assets 6,560 Goodwill 6,507 Total purchase consideration $ 13,067 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 $3.8 million consist entirely of customer relationships with an estimated useful life of 7 years. We recognized goodwill related to this transaction of $6.5 million, which was assigned to our technology reporting unit. The goodwill recognized in the acquisition is attributable to the acquired assembled workforce and expected synergies, none of which qualify for recognition as a separate intangible asset. The total amount of goodwill is expected to be deductible for tax purposes. The amount of revenues and earnings of the acquiree since the acquisition date are not material. Likewise, the impact to the revenue and earnings of the combined entity for the current reporting period through the acquisition date had the acquisition date been April 1, 2016, is not material. IGX acquisition On December 4, 2015, our subsidiary e The total purchase price, net of cash acquired, was $16.6 million paid in cash. 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 assigned 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 Evolve acquisition On August 18, 2014, our subsidiary, e The total purchase price was $10.5 million, which consists of cash paid, amounts to be paid to Evolve upon collection of certain accounts receivables, and the fair value of contingent consideration. We estimated the fair value of the contingent consideration to be $2.0 million as of the acquisition date using a Monte Carlo simulation model. The maximum payout for contingent consideration is $2.5 million over 3 years. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Mar. 31, 2017 | |
SEGMENT REPORTING [Abstract] | |
SEGMENT REPORTING | 15. SEGMENT REPORTING The Company’s segment information is presented in accordance with a “management approach,” which designates the internal reporting used by the chief operating decision-maker ("CODM") for deciding how to allocate resources and for assessing performance. With the appointment of a new Chief Executive Officer and President effective August 1, 2016, we reassessed the determination of our operating segments. Out of that assessment, we concluded that our new Chief Executive Officer and President had assumed the role of CODM and that our operations continue to be conducted through two operating segments, our technology segment and our financing segment. 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, state and local governments, and government contractors. Our financing segment consists of the financing of IT equipment, software and related services to commercial, state and local governments, and government contractors. Our CODM uses several measures to allocate resources and assess performance. Our reported measure is earnings before taxes. Our reportable segment information was as follows (in thousands): Year Ended March 31, 2017 2016 2015 Statement of Operations Technology Financing Total Technology Financing Total Technology Financing Total Sales of product and services $ 1,290,228 $ - $ 1,290,228 $ 1,163,337 $ - $ 1,163,337 $ 1,100,884 $ - $ 1,100,884 Financing revenue - 34,200 34,200 - 35,091 35,091 - 34,728 34,728 Fee and other income 4,709 252 4,961 5,728 43 5,771 7,565 105 7,670 Net sales 1,294,937 34,452 1,329,389 1,169,065 35,134 1,204,199 1,108,449 34,833 1,143,282 Cost of sales, product and services 1,025,188 - 1,025,188 931,782 - 931,782 887,673 - 887,673 Direct lease costs - 4,442 4,442 - 10,360 10,360 - 11,062 11,062 Cost of sales 1,025,188 4,442 1,029,630 931,782 10,360 942,142 887,673 11,062 898,735 Selling, general, and administrative expenses 193,594 11,638 205,232 167,992 10,988 178,980 155,412 11,713 167,125 Depreciation and amortization 7,243 9 7,252 5,532 16 5,548 4,310 23 4,333 Interest and financing costs - 1,543 1,543 70 1,708 1,778 96 2,283 2,379 Operating expenses 200,837 13,190 214,027 173,594 12,712 186,306 159,818 14,019 173,837 Operating income 68,912 16,820 85,732 63,689 12,062 75,751 60,958 9,752 70,710 Other income 380 - 7,603 Earnings before taxes $ 86,112 $ 75,751 $ 78,313 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 7,365 $ 4,366 $ 11,731 $ 5,641 $ 10,339 $ 15,980 $ 4,450 $ 11,125 $ 15,575 Purchases of property, equipment and operating lease equipment $ 3,356 $ 6,202 $ 9,558 $ 2,442 $ 12,026 $ 14,468 $ 3,610 $ 8,306 $ 11,916 Selected Financial Data - Balance Sheet Total assets $ 533,560 $ 208,160 $ 741,720 $ 427,580 $ 189,100 $ 616,680 $ 368,971 $ 199,304 $ 568,275 The geographic information for the years ended March 31, 2017, 2016 and 2015 was as follows (in thousands): Year Ended March 31, 2017 2016 2015 Net sales: U.S. $ 1,293,705 $ 1,186,904 $ 1,124,371 Non U.S. 35,684 17,295 18,911 Total $ 1,329,389 $ 1,204,199 $ 1,143,282 As of March 31, 2017 2016 Long-lived tangible assets: U.S. $ 31,449 $ 22,632 Non U.S. 1,878 1,427 Total $ 33,328 $ 24,059 Our long-lived tangible assets include property and equipment-net, operating leases-net, and equipment that has been returned to us at the termination of the lease. For the year ended March 31, 2017, sales to a large technology company were approximately 13% of net sales, all of which related to our technology segment. No single customer accounted for more than 10% of net sales for the years ended March 31, 2016 and 2015. |
QUARTERLY DATA -UNAUDITED
QUARTERLY DATA -UNAUDITED | 12 Months Ended |
Mar. 31, 2017 | |
QUARTERLY DATA -UNAUDITED [Abstract] | |
QUARTERLY DATA -UNAUDITED | 16. QUARTERLY DATA —UNAUDITED Condensed quarterly financial information is as follows (amounts in thousands, except per share amounts): Year Ended March 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Annual Amount Net sales $ 298,503 $ 371,462 $ 326,657 $ 332,767 $ 1,329,389 Cost of sales 230,839 289,529 252,871 256,391 1,029,630 Gross profit 67,664 81,933 73,786 76,376 299,759 Selling, general, and administrative expenses 48,054 51,607 50,160 55,411 205,232 Depreciation and amortization 1,775 1,723 1,910 1,844 7,252 Interest and financing costs 349 400 409 385 1,543 Operating expenses 50,178 53,730 52,479 57,640 214,027 Operating income 17,486 28,203 21,307 18,736 85,732 Other income - 380 - - 380 Earnings before provision for income taxes 17,486 28,583 21,307 18,736 86,112 Provision for income taxes 6,815 11,808 8,687 8,246 35,556 Net earnings $ 10,671 $ 16,775 $ 12,620 $ 10,490 $ 50,556 Net earnings per common share—Basic (1) $ 0.76 $ 1.21 $ 0.92 $ 0.76 $ 3.65 Net earnings per common share—Diluted (1) $ 0.75 $ 1.21 $ 0.91 $ 0.75 $ 3.60 (1) Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. Year Ended March 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Annual Amount Net sales $ 269,866 $ 336,286 $ 298,644 $ 299,403 $ 1,204,199 Cost of sales 210,736 264,365 234,584 232,457 942,142 Gross profit 59,130 71,921 64,060 66,946 262,057 Selling, general, and administrative expenses 42,303 43,638 44,688 48,351 178,980 Depreciation and amortization 1,208 1,200 1,331 1,809 5,548 Interest and financing costs 553 422 396 407 1,778 Operating expenses 44,064 45,260 46,415 50,567 186,306 Operating income 15,066 26,661 17,645 16,379 75,751 Earnings before provision for income taxes 15,066 26,661 17,645 16,379 75,751 Provision for income taxes 6,252 10,982 7,348 6,422 31,004 Net earnings $ 8,814 $ 15,679 $ 10,297 $ 9,957 $ 44,747 Net earnings per common share—Basic (1) $ 0.61 $ 1.08 $ 0.71 $ 0.69 $ 3.08 Net earnings per common share—Diluted (1) $ 0.60 $ 1.07 $ 0.70 $ 0.68 $ 3.05 (1) Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Mar. 31, 2017 | |
Schedule II - Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | e Schedule II - Valuation and Qualifying Accounts (Dollars in thousands) Balance at Charged to Deductions/ Balance at End Allowance for Sales Returns: (1) Year Ended March 31, 2015 592 1,009 (988 ) 613 Year Ended March 31, 2016 613 1,500 (1,460 ) 653 Year Ended March 31, 2017 653 1,530 (1,431 ) 752 Reserve for Credit Losses: Year Ended March 31, 2015 5,752 125 (254 ) 5,623 Year Ended March 31, 2016 5,623 (242 ) (188 ) 5,193 Year Ended March 31, 2017 5,193 277 (78 ) 5,392 Valuation for Deferred Taxes: Year Ended March 31, 2015 1,287 (64 ) - 1,223 Year Ended March 31, 2016 1,223 47 - 1,270 Year Ended March 31, 2017 1,270 - - 1,270 (1) These amounts represent the gross profit effect of sales returns during the respective years. Expected merchandise returns after year-end for sales made before year-end were $4.6 million, $4.0 million, and $3.8 million as of March 31, 2017, 2016, and 2015, respectively. |
ORGANIZATION AND SUMMARY OF S25
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2017 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION — e |
USE OF ESTIMATES | USE OF ESTIMATES — The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Estimates are used when accounting for items and matters including, but not limited to, revenue recognition, residual values, vendor consideration, lease classification, goodwill and intangibles, reserves for credit losses, inventory obsolescence, and the recognition and measurement of income tax assets and other provisions and contingencies. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates. |
STOCK SPLIT | STOCK SPLIT — On March 31, 2017, we completed a two-for-one stock split in the form of a stock dividend. References made to outstanding shares or per share amounts in the accompanying financial statements and disclosures have been retroactively adjusted for this stock split. The number of authorized shares reflected on the consolidated balance sheets was not affected by the stock split. |
REVENUE RECOGNITION | REVENUE RECOGNITION — The majority of our revenues are derived from the following sources: sales of third-party products, software, software assurance, maintenance and services; sales of our services and software and financing revenues. For all these revenue sources, we determine whether we are the principal or agent in accordance with Accounting Standards Codification (“Codification”) Topic, Revenue Recognition Principal Agent Considerations For arrangements with multiple elements, we allocate the total consideration to the deliverables based on an estimated selling price of our products and services. We determine the estimated selling price using cost plus a reasonable margin for each deliverable, which was based on historical data. Sales of Product and Services Generally, sales of third-party product and software are recognized on a gross basis with the selling price to the customer recorded as sales and the acquisition cost of the product or software recorded as cost of sales. Revenue is recognized when the title and risk of loss are passed to the customer, there is persuasive evidence of an arrangement for sale, delivery has occurred, the sales price is fixed or determinable and collectability is reasonably assured. Delivery for products is typically performed via drop-shipment by the vendor or distributor to our customers’ location, and for software via electronic delivery. The vast majority of our product and software sales are recognized upon delivery due to our sales terms with our customers and with our vendors. We provide e e We sell software assurance, subscription licenses, maintenance and service contracts where the services are performed by a third-party. Software assurance is a maintenance product that allows customers to upgrade at no additional cost to the latest technology if new applications are introduced during the period that the software assurance is in effect. As we enter into contracts with third-party service providers, we evaluate whether we are acting as a principal or agent in the transaction. As our customers are aware that the third-party service provider is to provide the services to them and that we are not responsible for the day-to-day provision of services in these arrangements, we concluded that we are acting as an agent and recognize revenue on a net basis at the date of sale. Under net revenue recognition, the cost paid to the vendor or third-party service provider is recorded as a reduction to sales, resulting in revenue being equal to the gross profit on the transaction. We present freight billed to our customers within sales and the related freight charged to us within cost of sales. Sales tax amounts collected from customers for remittance to governmental authorities are presented on a net basis. Financing Revenue We lease products to customers that are accounted for in accordance with Codification Topic, Leases The accounting for investments in leases and leased equipment is different depending on the type of lease. Each lease is classified as either a direct financing lease, sales-type lease, or operating lease, as appropriate. If a lease meets one or more of the following four criteria, the lease is classified as either a sales-type or direct financing lease; otherwise, it will be classified as an operating lease: · the lease transfers ownership of the property to the lessee by the end of the lease term; · the lease contains a bargain purchase option; · the lease term is equal to 75 percent or more of the estimated economic life of the leased property; or · the present value at the beginning of the lease term of the minimum lease payments equals or exceeds 90 percent of the fair value of the leased property at the inception of the lease. Revenue on direct financing and sales-type leases is deferred at the inception of the leases and is recognized over the term of the lease using the interest method. Revenue from operating leases is recognized ratably on a straight line basis over the term of the lease agreement. Codification Topic Transfers and Servicing, Sales of Financial Assets, Revenues on the sales of equipment at the end of a lease are recognized at the date of sale. The net gain or loss on sales of such equipment is presented within net sales in our consolidated statements of operations. Software License Sales We recognize revenue for the licensing and hosting of our software in accordance with Codification Topic Software, Revenue Recognition · there is persuasive evidence that an arrangement exists; · delivery has occurred; · no significant obligations by us remain, which relate to services essential to the functionality of the software with regard to implementation; · the sales price is determinable; and · it is probable that collection will occur. The majority of our agreements are fixed term license agreements and the revenue is recognized over the contract term. Revenue from the sale of a perpetual license is recognized upon installation of the software. We recognize revenue from hosting our proprietary software for our customers over the contract term. Our hosting arrangements do not contain a contractual right to take possession of the software. Revenue from Other Transactions Other sources of revenue are derived from: (1) income from events that occur after the initial sale of a financial asset; (2) remarketing fees; (3) agent fees received from various vendors in the technology segment; and (4) interest and other miscellaneous income. Reserves for Sales Returns Sales are reported net of allowances for returns which are maintained at a level believed by management to be adequate to absorb potential returns of sales of product and services in accordance with Codification Topic Revenue Product |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS — We consider all highly liquid investments, including those with an original maturity of three months or less at the date of acquisition, to be cash equivalents. Cash and cash equivalents consist primarily of interest-bearing accounts and money market funds that consist of short-term U.S. treasury securities. There were no restrictions on the withdrawal of funds from our money market accounts as of March 31, 2017 and March 31, 2016. |
FINANCING RECEIVABLES AND OPERATING LEASES | FINANCING RECEIVABLES AND OPERATING LEASES — Financing receivables and operating leases consists of notes receivable, direct financing, sales-type leases and operating leases. The terms of lease and financing arrangements are typically between Notes receivables consist of software and services that we finance for our customers. Interest income is recognized using the effective interest method and reported within net sales in our consolidated statement of operations. At the inception of our direct financing and sales-type leases, we record the net investment in leases, which consists of the sum of the minimum lease payments, initial direct costs (direct financing leases only), and unguaranteed residual value (gross investment) less the unearned income. For direct financing leases, the difference between the gross investment and the cost of the leased equipment is recorded as unearned income at the inception of the lease. Under sales-type leases, the difference between the fair value and cost of the leased property plus initial direct costs (net margins) is recorded as unearned revenue at the inception of the lease. We recognize contingent rental income, if any, when the changes in the factors on which the contingent lease payments are based actually occur. At the inception of an operating lease, equipment under operating leases is recorded at cost and depreciated on a straight-line basis over its useful life to the estimated residual value. The estimated useful lives for equipment under operating leases ranges based on the nature of the equipment. The estimated useful life for information technology equipment is 36 to 84 months, while that of medical equipment is between 48 and 60 months. |
RESIDUAL VALUES | RESIDUAL VALUES — Residual values, representing the unguaranteed estimated value of equipment at the termination of a lease, are recorded at the inception of each lease. The estimated residual values vary, both in amount and as a percentage of the original equipment cost, and depend upon several factors, including the equipment type, vendor's discount, market conditions, term of the lease, equipment supply and demand and by new product announcements by vendors. Unguaranteed residual values for direct financing and sales-type leases are recorded at their net present value and the unearned income is amortized over the life of the lease using the interest method. The residual values for operating leases are included in the leased equipment’s net book value. Residual values are evaluated on a quarterly basis and any impairment, other than temporary, is recorded in the period in which the impairment is determined. No upward revision of residual values is made subsequent to lease inception. |
RESERVES FOR CREDIT LOSSES | RESERVES FOR CREDIT LOSSES — Our receivables consist of trade and other accounts receivable and financing receivables. We maintain our reserves for credit losses at a level believed to be adequate to absorb potential losses inherent in the respective balances. The reserve for credit losses is increased by provisions for potential credit losses, which increases expenses, and decreased by subsequent recoveries. The reserve for credit losses is decreased by write-offs and reductions to the provision for potential credit losses. Accounts are either written off or written down when the loss is both probable and determinable. Management’s determination of the adequacy of the reserves for credit losses for accounts receivable is based on the age of the receivable balance, the customer’s credit quality rating, an evaluation of historical credit losses, current economic conditions, and other relevant factors. Management’s determination of the adequacy of the reserve for credit losses for financing receivables may be based on the following factors: an internally assigned credit quality rating, historical credit loss experience, current economic conditions, volume, growth, the composition of the lease portfolio, the fair value of the underlying collateral, and the funding status (i.e. not funded, funded on a recourse or partial recourse basis, or funded on non-recourse basis). We assign an internal credit quality rating to each customer at the inception of the lease based on the customer’s financial status, rating agency reports and other financial information. We update the internal credit quality rating at least annually or when an indicator of a change in credit quality arises, such as a delinquency or bankruptcy. Also, management regularly reviews financing receivables to assess whether any balances should be impaired or placed on nonaccrual status. |
CONCENTRATIONS OF RISK | CONCENTRATIONS OF RISK—Financial instruments that potentially subject us to concentrations of credit risk include cash and cash equivalents, short-term investments, accounts receivable, notes receivable and investments in direct financing and sales-type leases. Cash and cash equivalents and short-term investments are maintained principally with financial institutions in the United States, which have high credit ratings. Risk on accounts receivable, notes receivable and investments in direct financing and sales-type leases is reduced by the large number of diverse industries comprising our customer base and through the ongoing evaluation of collectability of our portfolio. Our credit risk is further mitigated through the underlying collateral and whether the lease is funded with recourse or non-recourse notes payable. A substantial portion of our sales are products from Cisco Systems, the successor companies to Hewlett-Packard, Hewlett Packard Enterprise and HP Inc., and NetApp, which represented approximately 47%, 6% and 5%, respectively, of our technology segment net sales for the year ended March 31, 2017, as compared to 49%, 7%, and 5%, respectively, of our technology segment net sales for the year ended March 31, 2016, and 49%, 8%, and 7%, respectively, for the year ended March 31, 2015. |
INVENTORIES | INVENTORIES — Inventories are stated at the lower of cost and net realizable value. Cost is determined using a weighted average cost method. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventories are shown net of allowance for obsolescence of $520 thousand and $147 thousand as of March 31, 2017 and 2016, respectively. |
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 relates to professional, managed and hosting services. |
GOODWILL | GOODWILL — We test goodwill for impairment on an annual basis, as of October 1, and between annual tests if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying amount. In a qualitative assessment, we assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. If, after assessing the totality of events or circumstances, we determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative goodwill impairment test is unnecessary. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then we perform the quantitative goodwill impairment test. We may also elect the unconditional option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the quantitative goodwill impairment test. In the quantitative impairment test, we compare the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. Conversely, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. |
CAPITALIZATION OF COSTS OF SOFTWARE FOR INTERNAL USE | CAPITALIZATION OF COSTS OF SOFTWARE FOR INTERNAL USE — We capitalize costs for the development of internal use software under the guidelines of Codification Topic Intangibles—Goodwill and Other Intangibles, Internal-Use Software |
CAPITALIZATION OF COSTS OF SOFTWARE TO BE MADE AVAILABLE TO CUSTOMERS | CAPITALIZATION OF COSTS OF SOFTWARE TO BE MADE AVAILABLE TO CUSTOMERS — In accordance with Codification Topic Software, Costs of Software to Be Sold, Leased, or Marketed |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT — Property and equipment are stated at cost, net of accumulated depreciation and amortization. Property and equipment obtained through an acquisition are stated at the fair market value as of the acquisition date. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets, which range from three to ten years. Information technology equipment is depreciated over three years. Perpetual software licenses are depreciated over five years. Furniture and certain fixtures are depreciated over five to ten years. Telecommunications equipment is depreciated over seven years. |
TREASURY STOCK | TREASURY STOCK — We account for treasury stock under the cost method and include treasury stock as a component of stockholders’ equity on the accompanying consolidated balance sheets. On March 31, 2017, we retired all outstanding shares of treasury stock. |
VENDOR CONSIDERATION | VENDOR CONSIDERATION — We receive payments and credits from vendors pursuant to volume incentive programs and shared marketing expense programs. Many of these programs extend over one or more quarters’ sales activities. Different programs have different vendor/program specific milestones to achieve. Amounts due from vendors as of March 31, 2017 and 2016 were $7.8 million and $15.6 million, respectively, which were included within accounts receivable-other, net in the accompanying balance sheets. Vendor consideration received pursuant to volume purchase incentive programs is allocated to inventory based on the applicable incentives from each vendor and is recorded in cost of sales, product and services, as the inventory is sold. If a rebate is probable and reasonably estimable, it is recognized based on a systematic and rational allocation of the cash consideration offered to the underlying transactions that result in our progress toward earning the rebate. If a rebate is not probable and reasonably estimable, it is recognized as the milestones are achieved. Vendor consideration received pursuant to shared marketing expense programs is recorded as a reduction of the related selling and administrative expenses in the period the program takes place only if the consideration represents a reimbursement of specific, incremental, identifiable costs. Consideration that exceeds the specific, incremental, identifiable costs is classified as a reduction of cost of sales, product and services. |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION — We account for share-based compensation in accordance with Codification Topic Compensation—Stock Compensation |
INCOME TAXES | INCOME TAXES — Deferred income taxes are accounted for in accordance with Codification Topic Income Taxes In addition, we account for uncertain tax positions in accordance with Codification Topic Income Taxes |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS — We account for business combinations using the acquisition method in accordance with Codification Topic Business Combinations Any premium paid over the fair value of the net tangible and intangible assets of the acquired business is recorded as goodwill. We recognize a gain in our income statement to the extent the purchase price is less than the fair value of assets acquired and liabilities assumed. The results of operations for an acquired company are included in our financial statements from the date of acquisition. |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT — We follow the guidance in Codification Topic Fair Value Measurements Fair Value Measurements and Disclosures · Level 1 – Observable inputs such as quoted prices for identical assets and liabilities in active markets; · Level 2 – Inputs other than quoted prices, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. · Level 3 – Unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. As of March 31, 2017, we measure money market funds and contingent consideration at fair value on a recurring basis, which is based on quoted net asset values. |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS — For financial instruments such as cash, short-term investments, accounts receivables, accounts payable and other current liabilities, we consider the recorded value of the financial instruments to approximate the fair value due to their short maturities. At March 31, 2017, the carrying amount of notes receivables, recourse and non-recourse payables were $45.4 million, $0.9 million and $36.5 million, respectively and the fair value of notes receivables, recourse and non-recourse payables were $44.0 million, $0.9 million and $36.4 million, respectively. At March 31, 2016, the carrying amount of notes receivables, recourse and non-recourse payables were $43.4 million, $3.3 million and $44.1 million, respectively and the fair value of notes receivables, recourse and non-recourse payables were $42.4 million, $3.3 million and $43.9 million. |
FOREIGN CURRENCY TRANSLATION | FOREIGN CURRENCY TRANSLATION— The Company’s functional currency is the U.S. dollar. The functional currency of the Company’s international operating subsidiaries is generally the same as the corresponding local currency. Assets and liabilities of the international operating subsidiaries are translated at the spot rate in effect at the applicable reporting date. Revenues and expenses of the international operating subsidiaries are translated at the average exchange rates in effect during the applicable period. The resulting foreign currency translation adjustment is recorded as accumulated other comprehensive loss, which is reflected as a separate component of stockholders’ equity |
EARNINGS PER SHARE | EARNINGS PER SHARE — Basic earnings per share is calculated by dividing net earnings attributable to common stockholders by the basic weighted average number of shares of common stock outstanding during each period. Diluted earnings per share reflects the potential dilution of securities that could participate in our earnings, including incremental shares issuable upon the assumed exercise of “in-the-money” stock options and other common stock equivalents during each period. |
RECENT ACCOUNTING PRONOUNCEME26
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 12 Months Ended |
Mar. 31, 2017 | |
RECENTLY ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS — Stock Compensation In January 2017, the FASB issued ASU 2017-04, Intangibles- Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This update eliminates Step 2 from the goodwill impairment test, which had required the assessment of fair value of individual assets and liabilities of a reporting unit to measure goodwill impairments. Goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. As permitted, we elected to early adopt this update for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this update did not impact our consolidated financial statements. |
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) , which, along with amendments issued in 2015 and 2016, will replace most existing revenue recognition guidance under GAAP and eliminate industry specific guidance. The core principle of the new guidance is that an entity should recognize revenue for the transfer of goods and services equal to an amount it expects to be entitled to receive for those goods and services. Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date The new guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). We have established a cross-functional implementation team and utilized a bottom-up approach to analyze the impact of the standard on our arrangements by reviewing the current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to our revenue contracts. The implementation team has reported the findings and progress of the project to management and the Audit Committee on a regular basis. We will adopt the guidance in our quarter ending June 30, 2018. We currently prefer to adopt the standard using the full retrospective method; however, our ability to do so is dependent on many factors, including the completion of our analysis of information necessary to recast prior period financial statements. Based on these and other factors, we may decide to use the cumulative catch-up transition method. Our analysis and evaluation of the new standard will continue through its effective date in the first quarter of 2018. A substantial amount of work remains to be completed due to the complexity of the new standard, the application of judgment and the requirement for the use of estimates in applying the new standard, as well as the volume of our client portfolio and the related terms and conditions of our contracts that must be reviewed. 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 OPE27
FINANCING RECEIVABLES AND OPERATING LEASES (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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): March 31, 2017 Notes Lease-Related Total Financing Minimum payments $ 48,524 $ 57,872 $ 106,396 Estimated unguaranteed residual value (1) - 18,273 18,273 Initial direct costs, net of amortization (2) 279 341 620 Unearned income - (5,913 ) (5,913 ) Reserve for credit losses (3) (3,434 ) (679 ) (4,113 ) Total, net $ 45,369 $ 69,894 $ 115,263 Reported as: Current $ 23,780 $ 27,876 $ 51,656 Long-term 21,589 42,018 63,607 Total, net $ 45,369 $ 69,894 $ 115,263 (1) Includes estimated unguaranteed residual values of $12,677 thousand for direct financing leases, which have been accounted for as sales under Codification Topic Transfers and Servicing (2) Initial direct costs are shown net of amortization of $510 thousand. (3) For details on reserve for credit losses, refer to Note 5, “Reserves for Credit Losses.” March 31, 2016 Notes Lease-Related Total Financing 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 accounted for as sales under Codification Topic Transfers and Servicing (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.” |
Future Scheduled Minimum Lease Payments | Future scheduled minimum lease payments for investments in direct financing and sales-type leases as of March 31, 2017 are as follows (in thousands): Year ending March 31, 2018 $ 30,590 2019 17,172 2020 7,228 2021 2,364 2022 and thereafter 518 Total $ 57,872 |
Investment in Operating Lease Equipment - Net | The components of the operating leases—net are as follows (in thousands): March 31, March 31, Cost of equipment under operating leases $ 16,725 $ 36,635 Accumulated depreciation (8,449 ) (18,897 ) Investment in operating lease equipment—net (1) $ 8,276 $ 17,738 (1) Amounts include estimated unguaranteed residual values of $1,117 thousand and $3,417 thousand as of March 31, 2017 and 2016, respectively. |
Future Minimum Rental Payments for Operating Leases | Future scheduled minimum lease rental payments as of March 31, 2017 are as follows (in thousands): Year ending March 31, 2018 $ 2,652 2019 1,492 2020 115 2021 3 2022 and thereafter - Total $ 4,262 |
GOODWILL AND OTHER INTANGIBLE28
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |
Changes in Goodwill | The following table summarizes the changes in the carrying amount of goodwill for the years ended March 31, 2017 and March 31, 2016, respectively (in thousands): Year Ended March 31, 2017 Year Ended March 31, 2016 Goodwill Accumulated Impairment Loss Net Carrying Amount Goodwill Accumulated Impairment Loss Net Carrying Amount Beginning Balance $ 50,824 $ (8,673 ) $ 42,151 $ 42,785 $ (8,673 ) $ 34,112 Acquisitions $ 6,507 $ - $ 6,507 $ 8,131 $ - $ 8,131 Foreign currency translations (261 ) - (261 ) (92 ) - (92 ) Ending Balance $ 57,070 $ (8,673 ) $ 48,397 $ 50,824 $ (8,673 ) $ 42,151 |
Components of Other Intangible Assets | Our other intangible assets consist of the following at March 31, 2017 and March 31, 2016 (in thousands): March 31, 2017 March 31, 2016 Gross Carrying Amount Accumulated Amortization / Impairment Loss Net Carrying Amount Gross Carrying Amount Accumulated Amortization / Impairment Loss Net Carrying Amount Customer relationships & other intangibles $ 23,373 $ (12,553 ) $ 10,820 $ 20,401 $ (9,193 ) $ 11,208 Capitalized software development 3,649 (2,310 ) 1,339 2,709 (1,914 ) 795 Total $ 27,022 $ (14,863 ) $ 12,159 $ 23,110 $ (11,107 ) $ 12,003 |
RESERVES FOR CREDIT LOSSES (Tab
RESERVES FOR CREDIT LOSSES (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
RESERVES FOR CREDIT LOSSES [Abstract] | |
Activity in Reserves for Credit Losses | Activity in our reserves for credit losses for the years ended March 31, 2017, 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 216 65 (4 ) 277 Write-offs and other (64 ) (12 ) (2 ) (78 ) Balance March 31, 2017 $ 1,279 $ 3,434 $ 679 $ 5,392 Accounts Receivable Notes Receivable Lease-Related Receivables Total Balance April 1, 2015 $ 1,169 $ 3,573 $ 881 $ 5,623 Provision for credit losses 126 (172 ) (196 ) (242 ) Write-offs and other (168 ) (20 ) - (188 ) Balance March 31, 2016 $ 1,127 $ 3,381 $ 685 $ 5,193 Accounts Receivable Notes Receivable Lease-Related Receivables Total Balance April 1, 2014 $ 1,364 $ 3,364 $ 1,024 $ 5,752 Provision for credit losses 28 209 (112 ) 125 Write-offs and other (223 ) - (31 ) (254 ) Balance March 31, 2015 $ 1,169 $ 3,573 $ 881 $ 5,623 |
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 reserve for credit losses and minimum lease payments associated with our investment in direct financing and sales- type lease balances disaggregated on the basis of our impairment method were as follows (in thousands): March 31, 2017 March 31, 2016 Notes Receivable Lease- Related Receivables Notes Receivable Lease- Related Receivables Reserves for credit losses: Ending balance: collectively evaluated for impairment $ 348 $ 556 $ 279 $ 562 Ending balance: individually evaluated for impairment 3,086 123 3,102 123 Ending balance $ 3,434 $ 679 $ 3,381 $ 685 Minimum payments: Ending balance: collectively evaluated for impairment $ 45,438 $ 57,730 $ 41,340 $ 66,161 Ending balance: individually evaluated for impairment 3,086 142 3,102 142 Ending balance $ 48,524 $ 57,872 $ 44,442 $ 66,303 |
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 March 31, 2017 and 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 March 31, 2017 High CQR $ 379 $ 224 $ 230 $ 833 $ 406 $ 32,532 $ 33,771 $ (2,362 ) $ (12,924 ) $ 18,485 Average CQR 113 20 113 246 91 23,622 23,959 (1,556 ) (13,353 ) 9,050 Low CQR - - 142 142 - - 142 (19 ) - 123 Total $ 492 $ 244 $ 485 $ 1,221 $ 497 $ 56,154 $ 57,872 $ (3,937 ) $ (26,277 ) $ 27,658 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 |
Age of the Recorded Notes Receivable 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 March 31, 2017 and 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 March 31, 2017 High CQR $ 183 $ 663 $ 755 $ 1,601 $ 1,165 $ 23,359 $ 26,125 $ (12,003 ) $ 14,122 Average CQR 28 5 - 33 555 18,725 19,313 (13,732 ) 5,581 Low CQR - - 3,086 3,086 - - 3,086 - 3,086 Total $ 211 $ 668 $ 3,841 $ 4,720 $ 1,720 $ 42,084 $ 48,524 $ (25,735 ) $ 22,789 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, AND OTHE30
PROPERTY, EQUIPMENT, AND OTHER ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
PROPERTY, EQUIPMENT, AND OTHER ASSETS AND LIABILITIES [Abstract] | |
Property and Equipment-Net | Property and equipment—net consists of the following (in thousands): March 31, March 31, Furniture, fixtures and equipment $ 17,132 $ 15,033 Vehicles 343 370 Capitalized software 4,342 4,018 Leasehold improvements 4,680 3,978 Total assets 26,497 23,399 Accumulated depreciation and amortization (19,807 ) (17,133 ) Property and equipment - net $ 6,690 $ 6,266 |
Property, Equipment, Other Assets and Liabilities | Our other assets and liabilities consist of the following (in thousands): March 31, March 31, Other current assets: Deposits & funds held in escrow $ 39,161 $ 3,116 Prepaid assets 3,388 6,683 Other 815 850 Total other current assets $ 43,364 $ 10,649 Other assets: Deferred costs $ 3,536 $ 1,831 Property and equipment, net 6,690 6,266 Other 1,730 547 Total other assets - long term $ 11,956 $ 8,644 March 31, March 31, Other current liabilities: Accrued expenses $ 7,450 $ 7,109 Accrued income taxes payable 1,761 - Other 9,968 6,009 Total other current liabilities $ 19,179 $ 13,118 Other liabilities: Deferred revenue $ 4,704 $ 1,866 Other 2,376 397 Total other liabilities - long term $ 7,080 $ 2,263 |
NOTES PAYABLE AND CREDIT FACI31
NOTES PAYABLE AND CREDIT FACILITY (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
NOTES PAYABLE AND CREDIT FACILITY [Abstract] | |
Non-recourse and Recourse Obligations | Recourse and non-recourse obligations consist of the following (in thousands): March 31, March 31, Recourse notes payable with interest rates ranging from 3.20% and 4.13% at March 31, 2017 and ranging from 2.70% and 4.13% at March 31, 2016. Current $ 908 $ 2,288 Long-term - 1,054 Total recourse notes payable $ 908 $ 3,342 Non-recourse notes payable secured by financing receivables and investments in operating leases with interest rates ranging from 2.0% to 7.75% at March 31, 2017 and ranging from 1.70% to 8.50% as of March 31, 2016. Current $ 26,085 $ 26,042 Long-term 10,431 18,038 Total non-recourse notes payable $ 36,516 $ 44,080 |
Recourse and non-recourse Notes Payable | Recourse and non-recourse notes payable as of March 31, 2017, mature as follows (in thousands): Recourse Notes Non-Recourse Year ending March 31, 2018 $ 908 $ 26,085 2019 - 7,781 2020 - 1,938 2021 - 712 2022 and thereafter - - $ 908 $ 36,516 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Future Minimum Rental Payments for Operating Leases | As of March 31, 2017, the future minimum lease payments are due as follows (in thousands): Contractual Obligations (in thousands) Year ending March 31, 2018 $ 4,715 2019 2,460 2020 1,155 2021 595 2022 and thereafter 124 Operating lease obligations (1) $ 9,049 (1) Excluding taxes, insurance and common area maintenance charges. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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 earnings per common share as disclosed in our consolidated statements of operations for the fiscal years ended March 31, 2017, 2016 and 2015 (in thousands, except per share data). Organization and Summary of Significant Accounting Policies ” Year Ended March 31, 2017 2016 2015 Calculation of earnings per common share - basic: Net earnings $ 50,556 $ 44,747 $ 45,840 Net earnings attributable to participating securities - - 59 Net earnings attributable to common shareholders $ 50,556 $ 44,747 $ 45,781 Calculation of earnings per common share - diluted: Net earnings attributable to common shareholders— basic $ 50,556 $ 44,747 $ 45,781 Add: undistributed earnings attributable to participating securities - - 1 Net earnings attributable to common shareholders— diluted $ 50,556 $ 44,747 $ 45,782 Basic and diluted common shares outstanding: Weighted average common shares outstanding — basic 13,867 14,513 14,636 Effect of dilutive shares 161 175 150 Weighted average shares common outstanding — diluted 14,028 14,688 14,786 Earnings per common share - basic $ 3.65 $ 3.08 $ 3.13 Earnings per common share - diluted $ 3.60 $ 3.05 $ 3.10 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
SHARE-BASED COMPENSATION [Abstract] | |
Summary of Restricted Shares | A summary of the non-vested restricted shares for year ended March 31, 2017 as follows: Number of Shares Weighted Average Grant- date Fair Value Nonvested April 1, 2016 407,603 $ 36.09 Granted 146,244 $ 43.15 Vested (181,461 ) $ 33.01 Forfeited (697 ) $ 38.45 Nonvested March 31, 2017 371,689 $ 40.45 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
INCOME TAXES [Abstract] | |
Reconciliation of Income Taxes to Statutory Federal Income Tax Rate | A reconciliation of income taxes computed at the statutory federal income tax rate of 35% to the provision for income taxes included in the consolidated statements of operations is as follows (in thousands, except percentages): Year Ended March 31, 2017 2016 2015 Statutory federal income tax rate 35 % 35 % 35 % Income tax expense computed at the U.S. statutory federal rate $ 30,134 $ 26,513 $ 27,410 State income tax expense—net of federal benefit 4,193 3,544 4,193 Non-deductible executive compensation 512 331 222 Other 717 616 648 Provision for income taxes $ 35,556 $ 31,004 $ 32,473 Effective income tax rate 41.3 % 40.9 % 41.5 % |
Components of Provision for Income Taxes | The components of the provision for income taxes are as follows (in thousands): Year Ended March 31, 2017 2016 2015 Current: Federal $ 29,619 $ 21,361 $ 27,665 State 7,001 6,114 6,667 Foreign 132 13 3 Total current expense 36,752 27,488 34,335 Deferred: Federal (622 ) 3,727 (1,591 ) State (432 ) (211 ) (271 ) Foreign (142 ) - - Total deferred expense (benefit) (1,196 ) 3,516 (1,862 ) Provision for income taxes $ 35,556 $ 31,004 $ 32,473 |
Components of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities were as follows (in thousands): March 31, 2017 2016 Deferred Tax Assets: Accrued vacation $ 2,217 $ 2,116 Deferred revenue 3,107 1,046 Foreign net operating loss carryforward 462 461 Reserve for credit losses 2,026 1,929 Restricted stock 1,779 1,778 Other accruals and reserves 2,555 1,556 Other credits and carryforwards 1,166 1,275 Gross deferred tax assets 13,312 10,161 Less: valuation allowance (1,270 ) (1,270 ) Net deferred tax assets 12,042 8,891 Deferred Tax Liabilities: Basis difference in fixed assets (1,399 ) (1,170 ) Basis difference in operating leases (9,926 ) (7,749 ) Basis difference in tax deductible goodwill (2,516 ) (2,973 ) Total deferred tax liabilities (13,841 ) (11,892 ) Net deferred tax liabilities $ (1,799 ) $ (3,001 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Fair Value Hierarchy of Financial Instruments | The following tables summarize the fair value hierarchy of our financial instruments as of March 31, 2017 and 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 March 31, 2017 Assets: Money market funds $ 50,866 $ 50,866 $ - $ - Liabilities: Contingent consideration $ 554 $ - $ - $ 554 March 31, 2016 Assets: Money market funds $ 39,509 $ 39,509 $ - $ - Liabilities: Contingent consideration $ 1,041 $ - $ - $ 1,041 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Consolidated IT Services [Member] | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed | 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 $ 7,491 Property and equipment 1,045 Identified intangible assets 3,810 Accounts payable and other current liabilities (5,786 ) Total identifiable net assets 6,560 Goodwill 6,507 Total purchase consideration $ 13,067 |
IGX Acquisition [Member] | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed | The total purchase price, net of cash acquired, was $16.6 million paid in cash. 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 |
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 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
SEGMENT REPORTING [Abstract] | |
Segment Reporting Information, by Reportable Segment | Our reportable segment information was as follows (in thousands): Year Ended March 31, 2017 2016 2015 Statement of Operations Technology Financing Total Technology Financing Total Technology Financing Total Sales of product and services $ 1,290,228 $ - $ 1,290,228 $ 1,163,337 $ - $ 1,163,337 $ 1,100,884 $ - $ 1,100,884 Financing revenue - 34,200 34,200 - 35,091 35,091 - 34,728 34,728 Fee and other income 4,709 252 4,961 5,728 43 5,771 7,565 105 7,670 Net sales 1,294,937 34,452 1,329,389 1,169,065 35,134 1,204,199 1,108,449 34,833 1,143,282 Cost of sales, product and services 1,025,188 - 1,025,188 931,782 - 931,782 887,673 - 887,673 Direct lease costs - 4,442 4,442 - 10,360 10,360 - 11,062 11,062 Cost of sales 1,025,188 4,442 1,029,630 931,782 10,360 942,142 887,673 11,062 898,735 Selling, general, and administrative expenses 193,594 11,638 205,232 167,992 10,988 178,980 155,412 11,713 167,125 Depreciation and amortization 7,243 9 7,252 5,532 16 5,548 4,310 23 4,333 Interest and financing costs - 1,543 1,543 70 1,708 1,778 96 2,283 2,379 Operating expenses 200,837 13,190 214,027 173,594 12,712 186,306 159,818 14,019 173,837 Operating income 68,912 16,820 85,732 63,689 12,062 75,751 60,958 9,752 70,710 Other income 380 - 7,603 Earnings before taxes $ 86,112 $ 75,751 $ 78,313 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 7,365 $ 4,366 $ 11,731 $ 5,641 $ 10,339 $ 15,980 $ 4,450 $ 11,125 $ 15,575 Purchases of property, equipment and operating lease equipment $ 3,356 $ 6,202 $ 9,558 $ 2,442 $ 12,026 $ 14,468 $ 3,610 $ 8,306 $ 11,916 Selected Financial Data - Balance Sheet Total assets $ 533,560 $ 208,160 $ 741,720 $ 427,580 $ 189,100 $ 616,680 $ 368,971 $ 199,304 $ 568,275 |
Geographical Information | The geographic information for the years ended March 31, 2017, 2016 and 2015 was as follows (in thousands): Year Ended March 31, 2017 2016 2015 Net sales: U.S. $ 1,293,705 $ 1,186,904 $ 1,124,371 Non U.S. 35,684 17,295 18,911 Total $ 1,329,389 $ 1,204,199 $ 1,143,282 As of March 31, 2017 2016 Long-lived tangible assets: U.S. $ 31,449 $ 22,632 Non U.S. 1,878 1,427 Total $ 33,328 $ 24,059 |
QUARTERLY DATA -UNAUDITED (Tabl
QUARTERLY DATA -UNAUDITED (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
QUARTERLY DATA -UNAUDITED [Abstract] | |
Condensed Quarterly Financial Information | Condensed quarterly financial information is as follows (amounts in thousands, except per share amounts): Year Ended March 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Annual Amount Net sales $ 298,503 $ 371,462 $ 326,657 $ 332,767 $ 1,329,389 Cost of sales 230,839 289,529 252,871 256,391 1,029,630 Gross profit 67,664 81,933 73,786 76,376 299,759 Selling, general, and administrative expenses 48,054 51,607 50,160 55,411 205,232 Depreciation and amortization 1,775 1,723 1,910 1,844 7,252 Interest and financing costs 349 400 409 385 1,543 Operating expenses 50,178 53,730 52,479 57,640 214,027 Operating income 17,486 28,203 21,307 18,736 85,732 Other income - 380 - - 380 Earnings before provision for income taxes 17,486 28,583 21,307 18,736 86,112 Provision for income taxes 6,815 11,808 8,687 8,246 35,556 Net earnings $ 10,671 $ 16,775 $ 12,620 $ 10,490 $ 50,556 Net earnings per common share—Basic (1) $ 0.76 $ 1.21 $ 0.92 $ 0.76 $ 3.65 Net earnings per common share—Diluted (1) $ 0.75 $ 1.21 $ 0.91 $ 0.75 $ 3.60 (1) Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. Year Ended March 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Annual Amount Net sales $ 269,866 $ 336,286 $ 298,644 $ 299,403 $ 1,204,199 Cost of sales 210,736 264,365 234,584 232,457 942,142 Gross profit 59,130 71,921 64,060 66,946 262,057 Selling, general, and administrative expenses 42,303 43,638 44,688 48,351 178,980 Depreciation and amortization 1,208 1,200 1,331 1,809 5,548 Interest and financing costs 553 422 396 407 1,778 Operating expenses 44,064 45,260 46,415 50,567 186,306 Operating income 15,066 26,661 17,645 16,379 75,751 Earnings before provision for income taxes 15,066 26,661 17,645 16,379 75,751 Provision for income taxes 6,252 10,982 7,348 6,422 31,004 Net earnings $ 8,814 $ 15,679 $ 10,297 $ 9,957 $ 44,747 Net earnings per common share—Basic (1) $ 0.61 $ 1.08 $ 0.71 $ 0.69 $ 3.08 Net earnings per common share—Diluted (1) $ 0.60 $ 1.07 $ 0.70 $ 0.68 $ 3.05 (1) Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. |
ORGANIZATION AND SUMMARY OF S40
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | Jan. 27, 2017 | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) |
REVENUE RECOGNITION [Abstract] | |||
Stock split ratio | 2 | 2 | |
Lease criteria minimum estimated economic life | 75.00% | ||
Lease criteria minimum fair value of lease payments at inception of lease | 90.00% | ||
Amount due from vendors | $ 7,800 | $ 15,600 | |
INVENTORIES [Abstract] | |||
Allowance for obsolescence | 520 | 147 | |
FOREIGN CURRENCY TRANSLATION [Abstract] | |||
Foreign currency transaction gain (loss) | $ (700) | ||
Minimum [Member] | |||
Operating Leased Assets [Line Items] | |||
Financing receivables term | 3 years | ||
Financing receivables ranging term | 42 months | ||
Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Financing receivables term | 7 years | ||
Financing receivables ranging term | 48 months | ||
Information Technology Equipment [Member] | Minimum [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease term | 36 months | ||
Information Technology Equipment [Member] | Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease term | 84 months | ||
Medical Equipment [Member] | Minimum [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease term | 48 months | ||
Medical Equipment [Member] | Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease term | 60 months | ||
Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes receivable, fair value disclosure | $ 45,400 | 43,400 | |
Recourse payable, fair value disclosure | 900 | 3,300 | |
Non-recourse payable, fair value disclosure | 36,500 | 44,100 | |
Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes receivable, fair value disclosure | 44,000 | 42,400 | |
Recourse payable, fair value disclosure | 900 | 3,300 | |
Non-recourse payable, fair value disclosure | $ 36,400 | $ 43,900 |
ORGANIZATION AND SUMMARY OF S41
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 12,159 | $ 12,003 | |
CAPITALIZATION OF COSTS OF SOFTWARE TO BE MADE AVAILABLE TO CUSTOMERS [Abstract] | |||
Capitalized software development costs for software sold to customers | 0 | 0 | |
Capitalized for software sold to customers cost included in other assets | $ 264 | 414 | |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Information Technology Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Telecommunications Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 7 years | ||
Software Capitalized for Internal [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 940 | 16 | |
Other assets | $ 1,076 | $ 381 | |
Product Sales [Member] | Cisco Systems [Member] | |||
Concentration of risk [Abstract] | |||
Percentage of concentration risk | 47.00% | 49.00% | 49.00% |
Product Sales [Member] | Hewlett Packard [Member] | |||
Concentration of risk [Abstract] | |||
Percentage of concentration risk | 6.00% | 7.00% | 8.00% |
Product Sales [Member] | NetApp [Member] | |||
Concentration of risk [Abstract] | |||
Percentage of concentration risk | 5.00% | 5.00% | 7.00% |
RECENT ACCOUNTING PRONOUNCEME42
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Excess tax benefits and deficiencies | $ 8,246 | $ 8,687 | $ 11,808 | $ 6,815 | $ 6,422 | $ 7,348 | $ 10,982 | $ 6,252 | $ 35,556 | $ 31,004 | $ 32,473 |
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) | ||||||||||
Excess tax benefits and deficiencies (in dollars per share) | $ (0.04) | ||||||||||
Excess tax benefits related to share-based awards | $ 700 | $ 600 |
FINANCING RECEIVABLES AND OPE43
FINANCING RECEIVABLES AND OPERATING LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Reserve for credit losses | $ (5,392) | $ (5,193) | $ (5,623) | $ (5,752) | |||
Reported as [Abstract] | |||||||
Current | 51,656 | 56,448 | |||||
Estimated unguaranteed residual values for direct financing lease | 12,677 | 6,722 | |||||
Accumulated amortization of initial direct cost | 510 | 612 | |||||
Collateral for non-recourse notes payable - Financing receivables | 33,100 | 36,100 | |||||
Collateral for non-recourse notes payable - Operating leases | 6,600 | 13,900 | |||||
Gain on sale of financing receivables | 8,100 | 7,400 | 5,900 | ||||
Proceeds from sale of financing receivables | 339,400 | 223,300 | 181,300 | ||||
Deferred revenue for servicing obligation | 500 | 300 | |||||
Future scheduled minimum lease payments [Abstract] | |||||||
Year ending March 31, 2018 | 30,590 | ||||||
2,019 | 17,172 | ||||||
2,020 | 7,228 | ||||||
2,021 | 2,364 | ||||||
2022 and thereafter | 518 | ||||||
Total | 57,872 | ||||||
Investment in operating lease equipment - net [Abstract] | |||||||
Cost of equipment under operating leases | 16,725 | 36,635 | |||||
Accumulated depreciation | (8,449) | (18,897) | |||||
Investment in operating lease equipment - net | [1] | 8,276 | 17,738 | ||||
Unguaranteed residual value of operating lease equipment net | 1,117 | 3,417 | |||||
Maximum potential future payments related guarantees | 1,200 | ||||||
Future scheduled minimum lease rental payments [Abstract] | |||||||
Year ending March 31, 2018 | 2,652 | ||||||
2,019 | 1,492 | ||||||
2,020 | 115 | ||||||
2,021 | 3 | ||||||
2022 and thereafter | 0 | ||||||
Total | 4,262 | ||||||
Notes Receivables [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Minimum payments | 48,524 | 44,442 | |||||
Estimated unguaranteed residual value | [2] | 0 | 0 | ||||
Initial direct costs, net of amortization | 279 | [3] | 312 | [4] | |||
Unearned income | 0 | 0 | |||||
Reserve for credit losses | (3,434) | [5] | (3,381) | [5] | (3,573) | (3,364) | |
Total, net | 45,369 | 41,373 | |||||
Reported as [Abstract] | |||||||
Current | 23,780 | 24,962 | |||||
Long-term | 21,589 | 16,411 | |||||
Total, net | 45,369 | 41,373 | |||||
Lease-Related Receivables [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Minimum payments | 57,872 | 66,303 | |||||
Estimated unguaranteed residual value | [2] | 18,273 | 12,693 | ||||
Initial direct costs, net of amortization | 341 | [3] | 475 | [4] | |||
Unearned income | (5,913) | (5,543) | |||||
Reserve for credit losses | (679) | [5] | (685) | [5] | $ (881) | $ (1,024) | |
Total, net | 69,894 | 73,243 | |||||
Reported as [Abstract] | |||||||
Current | 27,876 | 31,486 | |||||
Long-term | 42,018 | 41,757 | |||||
Total, net | 69,894 | 73,243 | |||||
Total Financing Receivables [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Minimum payments | 106,396 | 110,745 | |||||
Estimated unguaranteed residual value | [2] | 18,273 | 12,693 | ||||
Initial direct costs, net of amortization | 620 | [3] | 787 | [4] | |||
Unearned income | (5,913) | (5,543) | |||||
Reserve for credit losses | [5] | (4,113) | (4,066) | ||||
Total, net | 115,263 | 114,616 | |||||
Reported as [Abstract] | |||||||
Current | 51,656 | 56,448 | |||||
Long-term | 63,607 | 58,168 | |||||
Total, net | $ 115,263 | $ 114,616 | |||||
[1] | Amounts include estimated unguaranteed residual values of $1,117 thousand and $3,417 thousand as of March 31, 2017 and 2016, respectively. | ||||||
[2] | Includes estimated unguaranteed residual values of $12,677 thousand for direct financing leases, which have been accounted for as sales under Codification Topic Transfers and Servicing. | ||||||
[3] | Initial direct costs are shown net of amortization of $510 thousand. | ||||||
[4] | Initial direct costs are shown net of amortization of $612 thousand. | ||||||
[5] | For details on reserve for credit losses, refer to Note 5, "Reserves for Credit Losses." |
GOODWILL AND OTHER INTANGIBLE44
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | $ 50,824 | $ 42,785 | |
Goodwill, Accumulated Amortization Loss, Beginning Balance | (8,673) | (8,673) | |
Goodwill, Net Carrying Amount, Beginning Balance | 42,151 | 34,112 | |
Acquisitions | 6,507 | 8,131 | |
Foreign currency translations | (261) | (92) | |
Goodwill, Ending Balance | 57,070 | 50,824 | $ 42,785 |
Goodwill, Accumulated Amortization Loss, Ending Balance | (8,673) | (8,673) | (8,673) |
Goodwill, Net Carrying Amount, Ending Balance | 48,397 | 42,151 | 34,112 |
Finite-Lived Intangible Assets [Line Items] | |||
Intangibles Assets, Gross Carrying Amount | 27,022 | 23,110 | |
Intangibles Assets, Accumulated Amortization / Impairment Loss | (14,863) | (11,107) | |
Intangible Assets, Net Carrying Amount | $ 12,159 | 12,003 | |
Percentage change in the fair value | 10.00% | ||
Total amortization expense | $ 4,400 | 3,300 | $ 2,400 |
Future amortization expense for years ended March 31 [Abstract] | |||
2,018 | 5,000 | ||
2,019 | 3,000 | ||
2,020 | 2,200 | ||
2,021 | 1,500 | ||
2,022 | 1,100 | ||
Customer Relationships & Other Intangibles [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangibles Assets, Gross Carrying Amount | 23,373 | 20,401 | |
Intangibles Assets, Accumulated Amortization / Impairment Loss | (12,553) | (9,193) | |
Intangible Assets, Net Carrying Amount | $ 10,820 | 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 | $ 3,649 | 2,709 | |
Intangibles Assets, Accumulated Amortization / Impairment Loss | (2,310) | (1,914) | |
Intangible Assets, Net Carrying Amount | $ 1,339 | $ 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 | 12 Months Ended | ||||||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | |||||
Activity in reserves for credit losses [Roll Forward] | |||||||||
Balance | $ 5,193 | $ 5,623 | $ 5,752 | ||||||
Provision for credit losses | 277 | (242) | 125 | ||||||
Write-offs and other | (78) | (188) | (254) | ||||||
Balance | 5,392 | 5,193 | 5,623 | ||||||
Reserve for credit losses [Abstract] | |||||||||
Ending balance | 5,193 | 5,623 | 5,623 | $ 5,392 | $ 5,193 | ||||
Minimum payments [Abstract] | |||||||||
Ending balance: individually evaluated for impairment | 3,200 | ||||||||
Accounts Receivable [Member] | |||||||||
Activity in reserves for credit losses [Roll Forward] | |||||||||
Balance | 1,127 | 1,169 | 1,364 | ||||||
Provision for credit losses | 216 | 126 | 28 | ||||||
Write-offs and other | (64) | (168) | (223) | ||||||
Balance | 1,279 | 1,127 | 1,169 | ||||||
Reserve for credit losses [Abstract] | |||||||||
Ending balance | 1,127 | 1,169 | 1,169 | 1,279 | 1,127 | ||||
Notes Receivable [Member] | |||||||||
Activity in reserves for credit losses [Roll Forward] | |||||||||
Balance | 3,381 | [1] | 3,573 | 3,364 | |||||
Provision for credit losses | 65 | (172) | 209 | ||||||
Write-offs and other | (12) | (20) | 0 | ||||||
Balance | 3,434 | [1] | 3,381 | [1] | 3,573 | ||||
Reserve for credit losses [Abstract] | |||||||||
Ending balance: collectively evaluated for impairment | 348 | 279 | |||||||
Ending balance: individually evaluated for impairment | 3,086 | 3,102 | |||||||
Ending balance | 3,434 | [1] | 3,381 | [1] | 3,364 | 3,434 | [1] | 3,381 | [1] |
Minimum payments [Abstract] | |||||||||
Ending balance: collectively evaluated for impairment | 45,438 | 41,340 | |||||||
Ending balance: individually evaluated for impairment | 3,086 | 3,102 | |||||||
Ending balance | 48,524 | 44,442 | |||||||
Lease-Related Receivables [Member] | |||||||||
Activity in reserves for credit losses [Roll Forward] | |||||||||
Balance | 685 | [1] | 881 | 1,024 | |||||
Provision for credit losses | (4) | (196) | (112) | ||||||
Write-offs and other | (2) | 0 | (31) | ||||||
Balance | 679 | [1] | 685 | [1] | 881 | ||||
Reserve for credit losses [Abstract] | |||||||||
Ending balance: collectively evaluated for impairment | 556 | 562 | |||||||
Ending balance: individually evaluated for impairment | 123 | 123 | |||||||
Ending balance | $ 685 | [1] | $ 685 | [1] | $ 881 | 679 | [1] | 685 | [1] |
Minimum payments [Abstract] | |||||||||
Ending balance: collectively evaluated for impairment | 57,730 | 66,161 | |||||||
Ending balance: individually evaluated for impairment | 142 | 142 | |||||||
Ending balance | $ 57,872 | $ 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 | Mar. 31, 2017 | 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 | $ 1,221 | $ 973 |
Current | 497 | 1,143 |
Unbilled Minimum Lease Payments | 56,154 | 64,187 |
Total Minimum Lease Payments | 57,872 | 66,303 |
Unearned Income | (3,937) | (4,111) |
Non-Recourse Notes Payable | (26,277) | (31,628) |
Net Credit Exposure | 27,658 | 30,564 |
Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 4,720 | 5,974 |
Current | 1,720 | 503 |
Unbilled Minimum Lease Payments | 42,084 | 37,965 |
Total Minimum Lease Payments | 48,524 | 44,442 |
Non-Recourse Notes Payable | (25,735) | (21,586) |
Net Credit Exposure | $ 22,789 | 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 | $ 833 | 721 |
Current | 406 | 984 |
Unbilled Minimum Lease Payments | 32,532 | 46,157 |
Total Minimum Lease Payments | 33,771 | 47,862 |
Unearned Income | (2,362) | (2,705) |
Non-Recourse Notes Payable | (12,924) | (22,914) |
Net Credit Exposure | 18,485 | 22,243 |
High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 1,601 | 2,872 |
Current | 1,165 | 301 |
Unbilled Minimum Lease Payments | 23,359 | 24,092 |
Total Minimum Lease Payments | 26,125 | 27,265 |
Non-Recourse Notes Payable | (12,003) | (11,644) |
Net Credit Exposure | $ 14,122 | 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 | $ 246 | 110 |
Current | 91 | 159 |
Unbilled Minimum Lease Payments | 23,622 | 18,030 |
Total Minimum Lease Payments | 23,959 | 18,299 |
Unearned Income | (1,556) | (1,387) |
Non-Recourse Notes Payable | (13,353) | (8,714) |
Net Credit Exposure | 9,050 | 8,198 |
Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 33 | 0 |
Current | 555 | 202 |
Unbilled Minimum Lease Payments | 18,725 | 13,873 |
Total Minimum Lease Payments | 19,313 | 14,075 |
Non-Recourse Notes Payable | (13,732) | (9,942) |
Net Credit Exposure | $ 5,581 | 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 | 3,086 | 3,102 |
Current | 0 | 0 |
Unbilled Minimum Lease Payments | 0 | 0 |
Total Minimum Lease Payments | 3,086 | 3,102 |
Non-Recourse Notes Payable | 0 | 0 |
Net Credit Exposure | 3,086 | 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 | 492 | 590 |
31 to 60 Days Past Due [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 211 | 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 | 379 | 575 |
31 to 60 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 183 | 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 | 113 | 15 |
31 to 60 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 28 | 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 | 244 | 69 |
61 to 90 Days Past Due [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 668 | 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 | 224 | 52 |
61 to 90 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 663 | 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 | 20 | 17 |
61 to 90 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 5 | 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 | 485 | 314 |
Greater than 90 Days Past Due [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 3,841 | 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 | 230 | 94 |
Greater than 90 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 755 | 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 | 113 | 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 | $ 3,086 | $ 3,102 |
PROPERTY, EQUIPMENT, AND OTHE47
PROPERTY, EQUIPMENT, AND OTHER ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Total assets | $ 26,497 | $ 23,399 | |
Accumulated depreciation and amortization | (19,807) | (17,133) | |
Property and equipment - net | 6,690 | 6,266 | |
Depreciation expense on property and equipment | 3,000 | 2,300 | $ 1,500 |
Other current assets [Abstract] | |||
Deposits & funds held in escrow | 39,161 | 3,116 | |
Prepaid assets | 3,388 | 6,683 | |
Other | 815 | 850 | |
Total other current assets | 43,364 | 10,649 | |
Other assets [Abstract] | |||
Deferred costs | 3,536 | 1,831 | |
Property and equipment, net | 6,690 | 6,266 | |
Other | 1,730 | 547 | |
Total other assets - long term | 11,956 | 8,644 | |
Other current liabilities [Abstract] | |||
Accrued expenses | 7,450 | 7,109 | |
Accrued income taxes payable | 1,761 | 0 | |
Other | 9,968 | 6,009 | |
Total other current liabilities | 19,179 | 13,118 | |
Other liabilities [Abstract] | |||
Deferred revenue | 4,704 | 1,866 | |
Other | 2,376 | 397 | |
Total other liabilities - long term | 7,080 | 2,263 | |
Furniture, Fixtures and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total assets | 17,132 | 15,033 | |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total assets | 343 | 370 | |
Capitalized Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total assets | 4,342 | 4,018 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total assets | $ 4,680 | $ 3,978 |
NOTES PAYABLE AND CREDIT FACI48
NOTES PAYABLE AND CREDIT FACILITY (Details) $ in Thousands | 12 Months Ended | |
Mar. 31, 2017USD ($)Component | Mar. 31, 2016USD ($) | |
Recourse Notes Payable [Abstract] | ||
Current | $ 908 | $ 2,288 |
Long-term | 0 | 1,054 |
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Current | 26,085 | 26,042 |
Long-term | 10,431 | 18,038 |
Gain on repurchase agreement | 1,400 | |
Guarantor obligations for credit facility, maximum | 1,200 | |
Recourse Note Payable [Member] | ||
Recourse Notes Payable [Abstract] | ||
Current | 908 | 2,288 |
Long-term | 0 | 1,054 |
Total recourse notes payable | $ 908 | $ 3,342 |
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Weighted average interest rate of notes | 3.45% | 3.24% |
Debt Maturity [Abstract] | ||
Year ending March 31, 2018 | $ 908 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2022 and thereafter | 0 | |
Total | $ 908 | |
Recourse Note Payable [Member] | Minimum [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Interest rate of notes | 3.20% | 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 | $ 26,085 | $ 26,042 |
Long-term | 10,431 | 18,038 |
Total non-recourse notes payable | $ 36,516 | $ 44,080 |
Weighted average interest rate of notes | 3.73% | 3.13% |
Debt Maturity [Abstract] | ||
Year ending March 31, 2018 | $ 26,085 | |
2,019 | 7,781 | |
2,020 | 1,938 | |
2,021 | 712 | |
2022 and thereafter | 0 | |
Total | $ 36,516 | |
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 | 7.75% | 8.50% |
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 quarter end | 45 days | |
Period of notice required to terminate credit facility at year end | 90 days | |
Guarantor obligations for credit facility, maximum | $ 10,500 | |
WFCDF [Member] | LIBOR [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Debt instrument term of variable rate | 1 month | |
Basis spread on reference rate | 2.50% | |
WFCDF [Member] | Account Receivable Component [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 | |
WFCDF [Member] | Floor Plan Component [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Amount outstanding under credit facility | $ 132,600 | $ 121,900 |
COMMITMENTS AND CONTINGENCIES49
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Oct. 31, 2014USD ($) | Mar. 31, 2017USD ($)Defendant | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |||||
Rent expense | $ 5,600 | $ 4,900 | $ 4,700 | ||
Future Minimum Lease Payments [Abstract] | |||||
Year ending March 31, 2018 | 4,715 | ||||
2,019 | 2,460 | ||||
2,020 | 1,155 | ||||
2,021 | 595 | ||||
2022 and thereafter | 124 | ||||
Operating lease obligations | [1] | $ 9,049 | |||
Employment Contracts and Severance Plans [Abstract] | |||||
Number of defendants alleged to conspire to fix, raise, maintain or stabilize prices | Defendant | 10 | ||||
Claim settlement received | $ 6,200 | $ 380 | |||
Minimum [Member] | |||||
Other Commitments [Line Items] | |||||
Severance Payment Period Under Current Employment Agreements | 12 months | ||||
Maximum [Member] | |||||
Other Commitments [Line Items] | |||||
Severance Payment Period Under Current Employment Agreements | 26 months | ||||
[1] | Excluding taxes, insurance and common area maintenance charges. |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |||||||||
Weighted average number diluted shares outstanding adjustment [Abstract] | |||||||||||||||||||
Restricted stock awards that contain non-forfeitable rights to dividends (in shares) | 0 | 0 | |||||||||||||||||
Calculation of earnings per common share - basic [Abstract] | |||||||||||||||||||
Net earnings | $ 10,490 | $ 12,620 | $ 16,775 | $ 10,671 | $ 9,957 | $ 10,297 | $ 15,679 | $ 8,814 | $ 50,556 | $ 44,747 | $ 45,840 | ||||||||
Net earnings attributable to participating securities | 0 | 0 | 59 | ||||||||||||||||
Net earnings attributable to common share holders | 50,556 | 44,747 | 45,781 | ||||||||||||||||
Calculation of earnings per common share - diluted [Abstract] | |||||||||||||||||||
Net earnings attributable to common shareholders- basic | 50,556 | 44,747 | 45,781 | ||||||||||||||||
Add: undistributed earnings attributable to participating securities | 0 | 0 | 1 | ||||||||||||||||
Net earnings attributable to common shareholders- diluted | $ 50,556 | $ 44,747 | $ 45,782 | ||||||||||||||||
Basic and diluted common shares outstanding [Abstract] | |||||||||||||||||||
Weighted average common shares outstanding - basic (in shares) | 13,867,000 | 14,513,000 | 14,636,000 | ||||||||||||||||
Effect of dilutive shares (in shares) | 161,000 | 175,000 | 150,000 | ||||||||||||||||
Weighted average shares common outstanding-diluted (in shares) | 14,028,000 | 14,688,000 | 14,786,000 | ||||||||||||||||
Earnings per common share - basic (in dollars per share) | $ 0.76 | [1] | $ 0.92 | [1] | $ 1.21 | [1] | $ 0.76 | [1] | $ 0.69 | [1] | $ 0.71 | [1] | $ 1.08 | [1] | $ 0.61 | [1] | $ 3.65 | $ 3.08 | $ 3.13 |
Earnings per common share - diluted (in dollars per share) | $ 0.75 | [1] | $ 0.91 | [1] | $ 1.21 | [1] | $ 0.75 | [1] | $ 0.68 | [1] | $ 0.70 | [1] | $ 1.07 | [1] | $ 0.60 | [1] | $ 3.60 | $ 3.05 | $ 3.10 |
Unexercised stock options (in shares) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
[1] | Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) $ / shares in Units, $ in Thousands | Jan. 27, 2017 | Mar. 31, 2017USD ($)$ / sharesshares | Mar. 31, 2016USD ($)$ / sharesshares | Aug. 13, 2015shares |
Stock Split and Treasury Stock [Abstract] | ||||
Stock split ratio | 2 | 2 | ||
Treasury stock, retired value | $ | $ 0 | |||
Share Repurchase Plan [Abstract] | ||||
Authorized number of shares under stock repurchase program (in shares) | shares | 1,000,000 | 500,000 | ||
Common stock repurchased during the period (in shares) | shares | 656,962 | 232,604 | ||
Average cost of share repurchased (in dollars per share) | $ / shares | $ 40.81 | $ 38.11 | ||
Common stock repurchased during the period | $ | $ 26,800 | $ 8,900 | ||
Shares repurchased to satisfy tax withholding obligation (in shares) | shares | 59,472 | 60,894 | ||
Value of shares repurchased to satisfy tax withholding obligation | $ | $ 2,600 | |||
Treasury Stock [Member] | ||||
Stock Split and Treasury Stock [Abstract] | ||||
Treasury stock, retired (in shares) | shares | 6,200,000 | |||
Treasury stock, retired value | $ | $ 158,948 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted (in shares) | 0 | 0 | 0 |
Options outstanding (in shares) | 0 | 0 | 0 |
Additional Disclosures [Abstract] | |||
Vested share-based awards withheld to satisfy income tax obligations (in shares) | 59,472 | 60,894 | |
Vested share-based awards withheld to satisfy income tax obligations | $ 2,600 | ||
Compensation Expense [Abstract] | |||
Total share-based compensation expense | 6,025 | $ 5,711 | $ 4,585 |
Recognized tax benefit | 2,500 | 2,300 | 1,900 |
401 (k) Profit Sharing Plan [Abstract] | |||
Contribution to profit sharing plan | 1,900 | 1,400 | 1,400 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregated fair value of restricted shares | $ 6,000 | $ 4,700 | $ 4,000 |
Number of Shares [Roll Forward] | |||
Nonvested at beginning of period (in shares) | 407,603 | ||
Granted (in shares) | 146,244 | ||
Vested (in shares) | (181,461) | ||
Forfeited (in shares) | (697) | ||
Nonvested at end of period (in shares) | 371,689 | 407,603 | |
Weighted Average Grant-date Fair Value [Roll Forward] | |||
Nonvested at beginning of period (in dollars per share) | $ 36.09 | ||
Granted (in dollars per share) | 43.15 | $ 40.89 | $ 28.59 |
Vested (in dollars per share) | 33.01 | ||
Forfeited (in dollars per share) | 38.45 | ||
Nonvested at end of period (in dollars per share) | $ 40.45 | $ 36.09 | |
Additional Disclosures [Abstract] | |||
Vested share-based awards withheld to satisfy income tax obligations (in shares) | 59,472 | 60,894 | 35,158 |
Vested share-based awards withheld to satisfy income tax obligations | $ 2,600 | $ 2,500 | $ 2,000 |
Compensation Expense [Abstract] | |||
Unrecognized compensation expense | $ 10,300 | ||
Unrecognized compensation expense, period for recognition | 29 months | ||
2008 Director LTIP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 500,000 | ||
2008 Director LTIP [Member] | Restricted Stock [Member] | |||
Number of Shares [Roll Forward] | |||
Granted (in shares) | 257,608 | ||
2012 Employee LTIP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 1,500,000 | ||
2012 Employee LTIP [Member] | Restricted Stock [Member] | |||
Number of Shares [Roll Forward] | |||
Granted (in shares) | 683,046 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
INCOME TAXES [Abstract] | |||||||||||
Impact of recognizing the unrecognized tax benefit | $ 106 | $ 104 | $ 106 | $ 104 | |||||||
Interest on income taxes expense included in statement of operation | 4 | 4 | |||||||||
Accrued interest on income taxes | 52 | 48 | $ 52 | $ 48 | |||||||
Reconciliation of income taxes to the statutory rate [Abstract] | |||||||||||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% | ||||||||
Income tax expense computed at the U.S. statutory federal rate | $ 30,134 | $ 26,513 | $ 27,410 | ||||||||
State income tax expense - net of federal benefit | 4,193 | 3,544 | 4,193 | ||||||||
Non-deductible executive compensation | 512 | 331 | 222 | ||||||||
Other | 717 | 616 | 648 | ||||||||
Provision for income taxes | 8,246 | $ 8,687 | $ 11,808 | $ 6,815 | 6,422 | $ 7,348 | $ 10,982 | $ 6,252 | $ 35,556 | $ 31,004 | $ 32,473 |
Effective income tax rate | 41.30% | 40.90% | 41.50% | ||||||||
Current [Abstract] | |||||||||||
Federal | $ 29,619 | $ 21,361 | $ 27,665 | ||||||||
State | 7,001 | 6,114 | 6,667 | ||||||||
Foreign | 132 | 13 | 3 | ||||||||
Total current expense | 36,752 | 27,488 | 34,335 | ||||||||
Deferred [Abstract] | |||||||||||
Federal | (622) | 3,727 | (1,591) | ||||||||
State | (432) | (211) | (271) | ||||||||
Foreign | (142) | 0 | 0 | ||||||||
Total deferred expense (benefit) | (1,196) | 3,516 | (1,862) | ||||||||
Provision for income taxes | 8,246 | $ 8,687 | $ 11,808 | $ 6,815 | 6,422 | $ 7,348 | $ 10,982 | $ 6,252 | 35,556 | 31,004 | $ 32,473 |
Deferred Tax Assets [Abstract] | |||||||||||
Accrued vacation | 2,217 | 2,116 | 2,217 | 2,116 | |||||||
Deferred revenue | 3,107 | 1,046 | 3,107 | 1,046 | |||||||
Foreign net operating loss carryforward | 462 | 461 | 462 | 461 | |||||||
Reserve for credit losses | 2,026 | 1,929 | 2,026 | 1,929 | |||||||
Restricted stock | 1,779 | 1,778 | 1,779 | 1,778 | |||||||
Other accruals and reserves | 2,555 | 1,556 | 2,555 | 1,556 | |||||||
Other credits and carryforwards | 1,166 | 1,275 | 1,166 | 1,275 | |||||||
Gross deferred tax assets | 13,312 | 10,161 | 13,312 | 10,161 | |||||||
Less: valuation allowance | (1,270) | (1,270) | (1,270) | (1,270) | |||||||
Net deferred tax assets | 12,042 | 8,891 | 12,042 | 8,891 | |||||||
Deferred Tax Liabilities [Abstract] | |||||||||||
Basis difference in fixed assets | (1,399) | (1,170) | (1,399) | (1,170) | |||||||
Basis difference in operating lease items | (9,926) | (7,749) | (9,926) | (7,749) | |||||||
Basis difference in tax deductible goodwill | (2,516) | (2,973) | (2,516) | (2,973) | |||||||
Total deferred tax liabilities | (13,841) | (11,892) | (13,841) | (11,892) | |||||||
Net deferred tax liabilities | (1,799) | $ (3,001) | (1,799) | $ (3,001) | |||||||
State [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Capital loss carryforwards | 1,300 | $ 1,300 | |||||||||
Capital loss carryforwards expiration term | 5 years | ||||||||||
Foreign [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Operating loss carryforwards | $ 500 | $ 500 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Assets [Abstract] | ||
Money market funds | $ 50,866 | $ 39,509 |
Liabilities [Abstract] | ||
Contingent consideration | 554 | 1,041 |
Adjustment to fair value of contingent consideration | 232 | 369 |
Payments of contingent consideration | 700 | 1,200 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Money market funds | 50,866 | 39,509 |
Liabilities [Abstract] | ||
Contingent consideration | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Money market funds | 0 | 0 |
Liabilities [Abstract] | ||
Contingent consideration | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Money market funds | 0 | 0 |
Liabilities [Abstract] | ||
Contingent consideration | $ 554 | $ 1,041 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | May 17, 2017 | Dec. 06, 2016 | Dec. 04, 2015 | Aug. 18, 2014 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | |||||||
Goodwill | $ 48,397 | $ 42,151 | $ 34,112 | ||||
Customer Relationships [Member] | Maximum [Member] | |||||||
Schedule of Identified Intangible Assets [Abstract] | |||||||
Estimated useful lives | 7 years | ||||||
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 | ||||||
Evolve Technology Group [Member] | |||||||
Schedule of Identified Intangible Assets [Abstract] | |||||||
Purchase price | $ 10,500 | ||||||
Fair value of contingent consideration | 2,000 | ||||||
Contingent consideration payout period | 3 years | ||||||
Other net assets | 600 | ||||||
Evolve Technology Group [Member] | Maximum [Member] | |||||||
Schedule of Identified Intangible Assets [Abstract] | |||||||
Contingent consideration cash periodic payment | 2,500 | ||||||
Evolve Technology Group [Member] | Customer Relationships [Member] | |||||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | |||||||
Identified intangible assets | 4,000 | ||||||
Schedule of Identified Intangible Assets [Abstract] | |||||||
Estimated useful lives | 6 years | ||||||
Evolve Technology Group [Member] | Technology Reporting Unit [Member] | |||||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | |||||||
Goodwill | $ 4,500 | ||||||
Consolidated IT Services [Member] | |||||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | |||||||
Accounts receivable - trade, net | $ 7,491 | ||||||
Property and equipment | 1,045 | ||||||
Identified intangible assets | 3,810 | ||||||
Accounts payable and other current liabilities | (5,786) | ||||||
Total identifiable net assets | 6,560 | ||||||
Goodwill | 6,507 | ||||||
Total purchase consideration | 13,067 | ||||||
Schedule of Identified Intangible Assets [Abstract] | |||||||
Cash portion of the acquisition | $ 9,500 | $ 4,000 | |||||
Contingent consideration cash periodic payment | $ 400 | ||||||
Contingent consideration payout period | 2 years | ||||||
OneCloud Consulting, Inc [Member] | |||||||
Schedule of Identified Intangible Assets [Abstract] | |||||||
Cash portion of the acquisition | $ 4,500 | ||||||
Contingent consideration payout period | 3 years | ||||||
OneCloud Consulting, Inc [Member] | Subsequent Event [Member] | |||||||
Schedule of Identified Intangible Assets [Abstract] | |||||||
Cash portion of the acquisition | $ 8,800 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2017USD ($)Segment | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
SEGMENT REPORTING [Abstract] | |||||||||||
Number of business segment | Segment | 2 | ||||||||||
Statement of Operations [Abstract] | |||||||||||
Sales of product and services | $ 1,290,228 | $ 1,163,337 | $ 1,100,884 | ||||||||
Financing revenue | 34,200 | 35,091 | 34,728 | ||||||||
Fee and other income | 4,961 | 5,771 | 7,670 | ||||||||
Net sales | $ 332,767 | $ 326,657 | $ 371,462 | $ 298,503 | $ 299,403 | $ 298,644 | $ 336,286 | $ 269,866 | 1,329,389 | 1,204,199 | 1,143,282 |
Cost of sales, product and services | 1,025,188 | 931,782 | 887,673 | ||||||||
Direct lease costs | 4,442 | 10,360 | 11,062 | ||||||||
Cost of sales | 256,391 | 252,871 | 289,529 | 230,839 | 232,457 | 234,584 | 264,365 | 210,736 | 1,029,630 | 942,142 | 898,735 |
Selling, general, and administrative expenses | 55,411 | 50,160 | 51,607 | 48,054 | 48,351 | 44,688 | 43,638 | 42,303 | 205,232 | 178,980 | 167,125 |
Depreciation and amortization | 1,844 | 1,910 | 1,723 | 1,775 | 1,809 | 1,331 | 1,200 | 1,208 | 7,252 | 5,548 | 4,333 |
Interest and financing costs | 385 | 409 | 400 | 349 | 407 | 396 | 422 | 553 | 1,543 | 1,778 | 2,379 |
Operating expenses | 57,640 | 52,479 | 53,730 | 50,178 | 50,567 | 46,415 | 45,260 | 44,064 | 214,027 | 186,306 | 173,837 |
Operating income | 18,736 | 21,307 | 28,203 | 17,486 | 16,379 | 17,645 | 26,661 | 15,066 | 85,732 | 75,751 | 70,710 |
Other income | 0 | 0 | 380 | 0 | 380 | 0 | 7,603 | ||||
Earnings before tax | 18,736 | $ 21,307 | $ 28,583 | $ 17,486 | 16,379 | $ 17,645 | $ 26,661 | $ 15,066 | 86,112 | 75,751 | 78,313 |
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||||||||
Depreciation and amortization | 11,731 | 15,980 | 15,575 | ||||||||
Purchases of property, equipment and operating lease equipment | 9,558 | 14,468 | 11,916 | ||||||||
Selected Financial Data - Balance Sheet [Abstract] | |||||||||||
Total assets | 741,720 | 616,680 | 741,720 | 616,680 | 568,275 | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,329,389 | 1,204,199 | 1,143,282 | ||||||||
Long-lived tangible assets | 33,328 | 24,059 | 33,328 | 24,059 | |||||||
U.S. [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,293,705 | 1,186,904 | 1,124,371 | ||||||||
Long-lived tangible assets | 31,449 | 22,632 | 31,449 | 22,632 | |||||||
Non U.S [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 35,684 | 17,295 | 18,911 | ||||||||
Long-lived tangible assets | 1,878 | 1,427 | 1,878 | 1,427 | |||||||
Operating Segments [Member] | Technology [Member] | |||||||||||
Statement of Operations [Abstract] | |||||||||||
Sales of product and services | 1,290,228 | 1,163,337 | 1,100,884 | ||||||||
Financing revenue | 0 | 0 | 0 | ||||||||
Fee and other income | 4,709 | 5,728 | 7,565 | ||||||||
Net sales | 1,294,937 | 1,169,065 | 1,108,449 | ||||||||
Cost of sales, product and services | 1,025,188 | 931,782 | 887,673 | ||||||||
Direct lease costs | 0 | 0 | 0 | ||||||||
Cost of sales | 1,025,188 | 931,782 | 887,673 | ||||||||
Selling, general, and administrative expenses | 193,594 | 167,992 | 155,412 | ||||||||
Depreciation and amortization | 7,243 | 5,532 | 4,310 | ||||||||
Interest and financing costs | 0 | 70 | 96 | ||||||||
Operating expenses | 200,837 | 173,594 | 159,818 | ||||||||
Operating income | 68,912 | 63,689 | 60,958 | ||||||||
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||||||||
Depreciation and amortization | 7,365 | 5,641 | 4,450 | ||||||||
Purchases of property, equipment and operating lease equipment | 3,356 | 2,442 | 3,610 | ||||||||
Selected Financial Data - Balance Sheet [Abstract] | |||||||||||
Total assets | 533,560 | 427,580 | 533,560 | 427,580 | 368,971 | ||||||
Operating Segments [Member] | Financing [Member] | |||||||||||
Statement of Operations [Abstract] | |||||||||||
Sales of product and services | 0 | 0 | 0 | ||||||||
Financing revenue | 34,200 | 35,091 | 34,728 | ||||||||
Fee and other income | 252 | 43 | 105 | ||||||||
Net sales | 34,452 | 35,134 | 34,833 | ||||||||
Cost of sales, product and services | 0 | 0 | 0 | ||||||||
Direct lease costs | 4,442 | 10,360 | 11,062 | ||||||||
Cost of sales | 4,442 | 10,360 | 11,062 | ||||||||
Selling, general, and administrative expenses | 11,638 | 10,988 | 11,713 | ||||||||
Depreciation and amortization | 9 | 16 | 23 | ||||||||
Interest and financing costs | 1,543 | 1,708 | 2,283 | ||||||||
Operating expenses | 13,190 | 12,712 | 14,019 | ||||||||
Operating income | 16,820 | 12,062 | 9,752 | ||||||||
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||||||||
Depreciation and amortization | 4,366 | 10,339 | 11,125 | ||||||||
Purchases of property, equipment and operating lease equipment | 6,202 | 12,026 | 8,306 | ||||||||
Selected Financial Data - Balance Sheet [Abstract] | |||||||||||
Total assets | $ 208,160 | $ 189,100 | $ 208,160 | $ 189,100 | $ 199,304 | ||||||
Revenue [Member] | Technology [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percentage of concentration risk | 13.00% |
QUARTERLY DATA -UNAUDITED (Deta
QUARTERLY DATA -UNAUDITED (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |||||||||
QUARTERLY DATA -UNAUDITED [Abstract] | |||||||||||||||||||
Net sales | $ 332,767 | $ 326,657 | $ 371,462 | $ 298,503 | $ 299,403 | $ 298,644 | $ 336,286 | $ 269,866 | $ 1,329,389 | $ 1,204,199 | $ 1,143,282 | ||||||||
Cost of sales | 256,391 | 252,871 | 289,529 | 230,839 | 232,457 | 234,584 | 264,365 | 210,736 | 1,029,630 | 942,142 | 898,735 | ||||||||
Gross profit | 76,376 | 73,786 | 81,933 | 67,664 | 66,946 | 64,060 | 71,921 | 59,130 | 299,759 | 262,057 | 244,547 | ||||||||
Selling, general, and administrative expenses | 55,411 | 50,160 | 51,607 | 48,054 | 48,351 | 44,688 | 43,638 | 42,303 | 205,232 | 178,980 | 167,125 | ||||||||
Depreciation and amortization | 1,844 | 1,910 | 1,723 | 1,775 | 1,809 | 1,331 | 1,200 | 1,208 | 7,252 | 5,548 | 4,333 | ||||||||
Interest and financing costs | 385 | 409 | 400 | 349 | 407 | 396 | 422 | 553 | 1,543 | 1,778 | 2,379 | ||||||||
Operating expenses | 57,640 | 52,479 | 53,730 | 50,178 | 50,567 | 46,415 | 45,260 | 44,064 | 214,027 | 186,306 | 173,837 | ||||||||
Operating income | 18,736 | 21,307 | 28,203 | 17,486 | 16,379 | 17,645 | 26,661 | 15,066 | 85,732 | 75,751 | 70,710 | ||||||||
Other income | 0 | 0 | 380 | 0 | 380 | 0 | 7,603 | ||||||||||||
Earnings before tax | 18,736 | 21,307 | 28,583 | 17,486 | 16,379 | 17,645 | 26,661 | 15,066 | 86,112 | 75,751 | 78,313 | ||||||||
Provision for income taxes | 8,246 | 8,687 | 11,808 | 6,815 | 6,422 | 7,348 | 10,982 | 6,252 | 35,556 | 31,004 | 32,473 | ||||||||
Net earnings | $ 10,490 | $ 12,620 | $ 16,775 | $ 10,671 | $ 9,957 | $ 10,297 | $ 15,679 | $ 8,814 | $ 50,556 | $ 44,747 | $ 45,840 | ||||||||
Net earnings per common share - Basic (in dollars per share) | $ 0.76 | [1] | $ 0.92 | [1] | $ 1.21 | [1] | $ 0.76 | [1] | $ 0.69 | [1] | $ 0.71 | [1] | $ 1.08 | [1] | $ 0.61 | [1] | $ 3.65 | $ 3.08 | $ 3.13 |
Net earnings per common share - Diluted (in dollars per share) | $ 0.75 | [1] | $ 0.91 | [1] | $ 1.21 | [1] | $ 0.75 | [1] | $ 0.68 | [1] | $ 0.70 | [1] | $ 1.07 | [1] | $ 0.60 | [1] | $ 3.60 | $ 3.05 | $ 3.10 |
[1] | Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. |
SCHEDULE II - VALUATION AND Q58
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Expected merchandise returns | $ 4,600 | $ 4,000 | $ 3,800 | |
Allowance for Sales Returns [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | [1] | 653 | 613 | 592 |
Charged to Costs and Expenses | [1] | 1,530 | 1,500 | 1,009 |
Deductions/Write-Offs | [1] | (1,431) | (1,460) | (988) |
Balance at End of Period | [1] | 752 | 653 | 613 |
Reserve for Credit Losses [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 5,193 | 5,623 | 5,752 | |
Charged to Costs and Expenses | 277 | (242) | 125 | |
Deductions/Write-Offs | (78) | (188) | (254) | |
Balance at End of Period | 5,392 | 5,193 | 5,623 | |
Valuation for Deferred Taxes [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 1,270 | 1,223 | 1,287 | |
Charged to Costs and Expenses | 0 | 47 | (64) | |
Deductions/Write-Offs | 0 | 0 | 0 | |
Balance at End of Period | $ 1,270 | $ 1,270 | $ 1,223 | |
[1] | These amounts represent the gross profit effect of sales returns during the respective years. Expected merchandise returns after year-end for sales made before year-end were $4.6 million, $4.0 million, and $3.8 million as of March 31, 2017, 2016, and 2015, respectively. |