Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | May 22, 2018 | Sep. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | EPLUS INC | ||
Entity Central Index Key | 1,022,408 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 1,267,247,743 | ||
Entity Common Stock, Shares Outstanding | 14,158,132 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2018 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 118,198 | $ 109,760 |
Accounts receivable-trade, net | 270,156 | 266,029 |
Accounts receivable-other, net | 26,532 | 24,987 |
Inventories | 39,855 | 93,557 |
Financing receivables-net, current | 69,936 | 51,656 |
Deferred costs | 19,822 | 7,971 |
Other current assets | 23,625 | 43,364 |
Total current assets | 568,124 | 597,324 |
Financing receivables and operating leases-net | 68,511 | 71,883 |
Property, equipment and other assets | 19,143 | 11,956 |
Goodwill | 76,624 | 48,397 |
Other intangible assets-net | 26,302 | 12,160 |
TOTAL ASSETS | 758,704 | 741,720 |
Current liabilities: | ||
Accounts payable | 106,933 | 113,518 |
Accounts payable-floor plan | 112,109 | 132,612 |
Salaries and commissions payable | 19,801 | 18,878 |
Deferred revenue | 38,881 | 65,312 |
Recourse notes payable-current | 1,343 | 908 |
Non-recourse notes payable-current | 40,863 | 26,085 |
Other current liabilities | 33,370 | 19,179 |
Total current liabilities | 353,300 | 376,492 |
Non-recourse notes payable-long term | 10,072 | 10,431 |
Deferred tax liability-net | 1,662 | 1,799 |
Other liabilities | 21,067 | 7,080 |
TOTAL LIABILITIES | 386,101 | 395,802 |
COMMITMENTS AND CONTINGENCIES (Note 8) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $.01 per share par value; 2,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $.01 per share par value; 25,000 shares authorized; 13,761 outstanding at March 31, 2018 and 14,161 outstanding at March 31, 2017 and | 142 | 142 |
Additional paid-in capital | 130,000 | 123,536 |
Treasury stock, at cost, 467 shares at March 31, 2018 | (36,016) | 0 |
Retained earnings | 277,945 | 222,823 |
Accumulated other comprehensive income-foreign currency translation adjustment | 532 | (583) |
Total Stockholders' Equity | 372,603 | 345,918 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 758,704 | $ 741,720 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
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) | 13,761 | 14,161 |
Treasury stock, shares (in shares) | 467 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | [1] | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||||||||||||||||||||
Net sales | $ 330,426 | $ 342,569 | $ 370,845 | $ 367,157 | $ 332,767 | $ 326,657 | $ 371,462 | $ 298,503 | $ 1,410,997 | $ 1,329,389 | $ 1,204,199 | |||||||||
Cost of sales | 248,796 | 265,881 | 283,274 | 289,564 | 256,391 | 252,871 | 289,529 | 230,839 | 1,087,515 | 1,029,630 | 942,142 | |||||||||
Gross profit | 81,630 | 76,688 | 87,571 | 77,593 | 76,376 | 73,786 | 81,933 | 67,664 | 323,482 | 299,759 | 262,057 | |||||||||
Selling, general, and administrative expenses | 59,989 | 57,134 | 56,340 | 54,664 | 55,411 | 50,160 | 51,607 | 48,054 | 228,127 | 205,232 | 178,980 | |||||||||
Depreciation and amortization | 2,835 | 2,894 | 2,129 | 2,063 | 1,844 | 1,910 | 1,723 | 1,775 | 9,921 | 7,252 | 5,548 | |||||||||
Interest and financing costs | 292 | 270 | 274 | 359 | 385 | 409 | 400 | 349 | 1,195 | 1,543 | 1,778 | |||||||||
Operating expenses | 63,116 | 60,298 | 58,743 | 57,086 | 57,640 | 52,479 | 53,730 | 50,178 | 239,243 | 214,027 | 186,306 | |||||||||
Operating income | 18,514 | 16,390 | 28,828 | 20,507 | 18,736 | 21,307 | 28,203 | 17,486 | 84,239 | 85,732 | 75,751 | |||||||||
Other income (expense) | (347) | (131) | (141) | 271 | 0 | 0 | 380 | 0 | (348) | 380 | 0 | |||||||||
Earnings before tax | 18,167 | 16,259 | 28,687 | 20,778 | 18,736 | 21,307 | 28,583 | 17,486 | 83,891 | 86,112 | 75,751 | |||||||||
Provision for income taxes | 9,270 | 678 | 11,466 | 7,355 | 8,246 | 8,687 | 11,808 | 6,815 | 28,769 | 35,556 | 31,004 | |||||||||
Net earnings | $ 8,897 | $ 15,581 | $ 17,221 | $ 13,423 | $ 10,490 | $ 12,620 | $ 16,775 | $ 10,671 | $ 55,122 | $ 50,556 | $ 44,747 | |||||||||
Net earnings per common share-basic (in dollars per share) | $ 0.65 | [1] | $ 1.12 | [1] | $ 1.24 | [1] | $ 0.97 | [1] | $ 0.76 | [1] | $ 0.92 | [1] | $ 1.21 | [1] | $ 0.76 | $ 4 | $ 3.65 | $ 3.08 | ||
Net earnings per common share-diluted (in dollars per share) | $ 0.65 | [1] | $ 1.11 | [1] | $ 1.23 | [1] | $ 0.96 | [1] | $ 0.75 | [1] | $ 0.91 | [1] | $ 1.21 | [1] | $ 0.75 | $ 3.95 | $ 3.60 | $ 3.05 | ||
Weighted average common shares outstanding-basic (in shares) | 13,790 | 13,867 | 14,513 | |||||||||||||||||
Weighted average common shares outstanding-diluted (in shares) | 13,967 | 14,028 | 14,688 | |||||||||||||||||
[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, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
NET EARNINGS | $ 55,122 | $ 50,556 | $ 44,747 |
OTHER COMPREHENSIVE INCOME, NET OF TAX: | |||
Foreign currency translation adjustments | 1,115 | (112) | (232) |
Other comprehensive income (loss) | 1,115 | (112) | (232) |
TOTAL COMPREHENSIVE INCOME | $ 56,237 | $ 50,444 | $ 44,515 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Cash Flows From Operating Activities: | |||
Net earnings | $ 55,122 | $ 50,556 | $ 44,747 |
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 15,827 | 11,731 | 15,980 |
Reserve for credit losses, inventory obsolescence and sales returns | 333 | 749 | (216) |
Share-based compensation expense | 6,464 | 6,025 | 5,711 |
Deferred taxes | (44) | (1,196) | 3,515 |
Payments from lessees directly to lenders-operating leases | (1,445) | (1,724) | (4,646) |
Gain on disposal of property, equipment and operating lease equipment | (8,694) | (3,977) | (3,104) |
Gain on sale of financing receivables | (6,796) | (7,976) | (7,103) |
Other | 65 | 193 | 185 |
Changes in: | |||
Accounts receivable-trade | 7,593 | (25,739) | (8,564) |
Accounts receivable-other | (1,011) | 8,507 | (2,498) |
Inventories | 54,982 | (60,022) | (13,405) |
Financing receivables-net | (8,537) | (5,824) | (9,310) |
Deferred costs, other intangible assets and other assets | (19,474) | (1,091) | 11,189 |
Accounts payable | 258 | 3,845 | (738) |
Salaries and commissions payable, deferred revenue and other liabilities | (11,877) | 58,959 | (17,633) |
Net cash provided by operating activities | 82,766 | 33,016 | 14,110 |
Cash Flows From Investing Activities: | |||
Proceeds from sale of property, equipment and operating lease equipment | 14,403 | 7,339 | 6,931 |
Purchases of property, equipment and operating lease equipment | (7,590) | (9,558) | (14,468) |
Purchases of assets to be leased or financed | (6,378) | (9,861) | (11,403) |
Issuance of financing receivables | (170,666) | (129,361) | (137,008) |
Repayments of financing receivables | 78,047 | 55,093 | 58,067 |
Proceeds from sale of financing receivables | 72,225 | 69,146 | 64,351 |
Cash used in acquisitions, net of cash acquired | (37,718) | (9,143) | (16,649) |
Net cash used in investing activities | (57,677) | (26,345) | (50,179) |
Cash Flows From Financing Activities: | |||
Borrowings of non-recourse and recourse notes payable | 72,389 | 73,707 | 44,807 |
Repayments of non-recourse and recourse notes payable | (31,302) | (40,414) | (257) |
Repurchase of common stock | (35,245) | (30,493) | (11,339) |
Dividends paid | 0 | 0 | (80) |
Payments to settle financing of acquisitions | (2,104) | (1,142) | (1,158) |
Net borrowings (repayments) on floor plan facility | (20,503) | 6,156 | 22,475 |
Net cash (used in) provided by financing activities | (16,765) | 7,814 | 54,448 |
Effect of exchange rate changes on cash | 114 | 509 | 212 |
Net Increase (Decrease) in Cash and Cash Equivalents | 8,438 | 14,994 | 18,591 |
Cash and Cash Equivalents, Beginning of Period | 109,760 | 94,766 | 76,175 |
Cash and Cash Equivalents, End of Period | 118,198 | 109,760 | 94,766 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for interest | 602 | 38 | 84 |
Cash paid for income taxes | 32,134 | 32,240 | 29,789 |
Schedule of Non-Cash Investing and Financing Activities: | |||
Proceeds from sale of property, equipment, and operating lease equipment | 591 | 135 | 7,650 |
Purchase of property, equipment, and operating lease equipment | (290) | (2,398) | (10,562) |
Purchase of assets to be leased or financed | (5,089) | (6,702) | (9,827) |
Issuance of financing receivables | (132,982) | (217,244) | (101,718) |
Repayment of financing receivables | 13,018 | 19,421 | 16,873 |
Proceeds from sale of financing receivables | 143,956 | 215,227 | 98,753 |
Financing of acquisitions | (12,050) | (3,924) | 0 |
Borrowing of non-recourse and recourse notes payable | 16,066 | 35,533 | 42,840 |
Repayments of non-recourse and recourse notes payable | (19,372) | (29,217) | (29,059) |
Vesting of share-based compensation | 12,037 | 8,013 | 7,799 |
Repurchase of common stock | $ (771) | $ 0 | $ 0 |
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, 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 | |||||
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 | ||||
Issuance of restricted stock awards | $ 0 | 0 | 0 | 0 | 0 | $ 0 |
Issuance of restricted stock awards (in shares) | 67 | |||||
Share-based compensation | 6,464 | 0 | 0 | 0 | 6,464 | |
Repurchase of common stock | $ 0 | 0 | (36,016) | 0 | 0 | (36,016) |
Repurchase of common stock (in shares) | (467) | |||||
Net earnings | $ 0 | 0 | 0 | 55,122 | 0 | 55,122 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 1,115 | 1,115 |
Balance at Mar. 31, 2018 | $ 142 | $ 130,000 | $ (36,016) | $ 277,945 | $ 532 | $ 372,603 |
Balance (in shares) at Mar. 31, 2018 | 13,761 | 13,761 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2018 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. 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. 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, 2018 and March 31, 2017. 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, unearned income equals the difference between the gross investment in the lease and the cost of the leased equipment. For sales type leases, unearned income equals the difference between the gross investment in the lease and the sum of the present values of the individual components of the gross investment in 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, which represented approximately 43%, 47%, and 49%, of our technology segment net sales for the years ended March 31, 2018, 2017, and 2016, respectively. 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 $247 thousand and $520 thousand as of March 31, 2018 and 2017, 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 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. 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, 2018 and 2017 were $12.8 million and $7.8 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, 2018, 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, 2018, the carrying amount of notes receivables, recourse and non-recourse payables were $62.9 million, $1.3 million and $50.9 million, respectively and the fair value of notes receivables, recourse and non-recourse payables were $63.0 million, $1.3 million and $51.1 million, respectively. 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. 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, 2018 | |
RECENTLY ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED — In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date We 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. We will adopt the guidance in our quarter ending June 30, 2018 and will use the full retrospective method. We finalized our accounting policies under the new standard and we have determined: · The accounting for revenue within our technology segment related to the sale of third-party products, software, services, as well as our professional and managed services will remain substantially unchanged. · The accounting for bill and hold transactions will result in revenue for certain of those arrangements being recognized earlier than under current GAAP. This change will result in an increase in net sales and decrease in deferred revenue of $3.2 million and an increase in cost of sales and decrease in deferred costs of $3.1 million, respectively, for the year ended March 31, 2018. This change does not impact the financial statements for the years ended March 31, 2017 or 2016. · We will recognize revenues on the sale of off-lease equipment on a gross basis under the new revenue standard, which we currently recognize on a net basis. This will result in an increase to our reported net sales of $4.5 million, $2.4 million, and $4.5 million for the years ended March 31, 2018, 2017 and 2016, respectively. · The adoption of this standard will not materially impact our consolidated balance sheet or cash flows from operations. In November 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, 2018 | |
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, 2018 Notes Receivables Lease-Related Receivables Total Financing Receivables Minimum payments $ 62,992 $ 65,943 $ 128,935 Estimated unguaranteed residual value (1) - 11,226 11,226 Initial direct costs, net of amortization (2) 375 334 709 Unearned income - (8,251 ) (8,251 ) Reserve for credit losses (3) (486 ) (640 ) (1,126 ) Total, net $ 62,881 $ 68,612 $ 131,493 Reported as: Current $ 39,993 $ 29,943 $ 69,936 Long-term 22,888 38,669 61,557 Total, net $ 62,881 $ 68,612 $ 131,493 (1) Includes estimated unguaranteed residual values of $6,004 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 $341 thousand. (3) For details on reserve for credit losses, refer to Note 5, “Reserves for Credit Losses.” March 31, 2017 Notes Receivables Lease-Related Receivables Total Financing Receivables 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.” Future scheduled minimum lease payments for investments in direct financing and sales-type leases as of March 31, 2018 are as follows (in thousands): Year ending March 31, 2019 $ 34,596 2020 18,218 2021 9,764 2022 2,380 2023 and thereafter 985 Total $ 65,943 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, 2018 March 31, 2017 Cost of equipment under operating leases $ 15,683 $ 16,725 Accumulated depreciation (8,729 ) (8,449 ) Investment in operating lease equipment—net (1) $ 6,954 $ 8,276 (1) Amounts include estimated unguaranteed residual values of $1,921 thousand and $1,117 thousand as of March 31, 2018 and 2017, respectively. Future scheduled minimum lease rental payments as of March 31, 2018 are as follows (in thousands): Year ending March 31, 2019 $ 5,103 2020 1,638 2021 788 2022 5 2023 and thereafter - Total $ 7,534 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 a secured borrowing, the corresponding investments serve as collateral for non-recourse notes payable. As of March 31, 2018 and 2017 we had financing receivables of $52.0 million and $33.1 million, respectively, and operating leases of $5.3 million and $6.6 million, respectively that were collateral for non-recourse notes payable. See Note 7, "Notes Payable and Credit Facility." 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, 2018, 2017, and 2016, we recognized net gains of $6.8 million, $8.1 million, and $7.4 million, respectively, and total proceeds from these sales were $267.3 million, $339.4 million, and $223.3 million, respectively. When we retain servicing obligations in transfers accounted for as sales, we allocate a portion of the proceeds to deferred revenues, which is recognized as we perform the services. As of March 31, 2018 and 2017, we had deferred revenue of $0.5 million for servicing obligations. In a limited number of transfers accounted for as sales, we indemnified the assignee in the event that the lessee elects to early terminate the lease. As of March 31, 2018, our maximum potential future payments related to such guarantees is $0.4 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, 2018 | |
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, 2018 and March 31, 2017, respectively (in thousands): Year Ended March 31, 2018 Year Ended March 31, 2017 Goodwill Accumulated Impairment Loss Net Carrying Amount Goodwill Accumulated Impairment Loss Net Carrying Amount Beginning Balance $ 57,070 $ (8,673 ) $ 48,397 $ 50,824 $ (8,673 ) $ 42,151 Acquisitions 27,996 - 27,996 6,507 - 6,507 Foreign currency translations 231 - 231 (261 ) - (261 ) Ending Balance $ 85,297 $ (8,673 ) $ 76,624 $ 57,070 $ (8,673 ) $ 48,397 All of our goodwill as of March 31, 2018 and March 31, 2017 was assigned to our technology segment. See Note 14, “Business Combinations” for additional information regarding our acquisitions. We performed our annual test for impairment for fiscal year 2018 as of October 1, 2017. 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, 2017. We OTHER INTANGIBLE ASSETS Our other intangible assets consist of the following at March 31, 2018 and March 31, 2017 (in thousands): March 31, 2018 March 31, 2017 Gross Carrying Amount Accumulated Amortization / Impairment Loss Net Carrying Amount Gross Carrying Amount Accumulated Amortization / Impairment Loss Net Carrying Amount Customer relationships & other intangibles $ 41,895 $ (18,634 ) $ 23,261 $ 23,373 $ (12,553 ) $ 10,820 Capitalized software development 5,608 (2,567 ) 3,041 3,649 (2,310 ) 1,339 Total $ 47,503 $ (21,201 ) $ 26,302 $ 27,022 $ (14,863 ) $ 12,159 Customer relationships and Total amortization expense was $6.4 million, $4.4 million, and $3.3 million for the years ended March 31, 2018, 2017 and 2016, respectively. Amortization expense is estimated to be $7.1 million, $6.0 million, $4.8 million, $3.7 million, and $2.6 million for the years ended March 31, 2019, 2020, 2021, 2022, and 2023, respectively. See Note 14, “Business Combinations” for additional information regarding acquired intangibles. |
RESERVES FOR CREDIT LOSSES
RESERVES FOR CREDIT LOSSES | 12 Months Ended |
Mar. 31, 2018 | |
RESERVES FOR CREDIT LOSSES [Abstract] | |
RESERVES FOR CREDIT LOSSES | 5. Activity in our reserves for credit losses for the years ended March 31, 2018, 2017 and 2016 were as follows (in thousands): Accounts Receivable Notes Receivable Lease-Related Receivables Total Balance April 1, 2017 $ 1,279 $ 3,434 $ 679 $ 5,392 Provision for credit losses 264 73 125 462 Write-offs and other (5 ) (3,021 ) (164 ) (3,190 ) Balance March 31, 2018 $ 1,538 $ 486 $ 640 $ 2,664 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 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, 2018 March 31, 2017 Notes Receivable Lease- Related Receivables Notes Receivable Lease- Related Receivables Reserves for credit losses: Ending balance: collectively evaluated for impairment $ 424 $ 640 $ 348 $ 556 Ending balance: individually evaluated for impairment 62 - 3,086 123 Ending balance $ 486 $ 640 $ 3,434 $ 679 Minimum payments: Ending balance: collectively evaluated for impairment $ 62,930 $ 65,943 $ 45,438 $ 57,730 Ending balance: individually evaluated for impairment 62 - 3,086 142 Ending balance $ 62,992 $ 65,943 $ 48,524 $ 57,872 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 were written-off during the year ended March 31, 2018. 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, 2018 and 2017 (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, 2018 High CQR $ 143 $ 40 $ 43 $ 226 $ 224 $ 33,779 $ 34,229 $ (3,743 ) $ (17,207 ) $ 13,279 Average CQR 109 31 117 257 171 31,286 31,714 (2,749 ) (16,012 ) 12,953 Low CQR - - - - - - - - - - Total $ 252 $ 71 $ 160 $ 483 $ 395 $ 65,065 $ 65,943 $ (6,492 ) $ (33,219 ) $ 26,232 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 The age of the recorded notes receivable balance disaggregated based on our internally assigned CQR were as follows as March 31, 2018 and 2017 (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, 2018 High CQR $ 175 $ 527 $ 423 $ 1,125 $ 3,262 $ 40,896 $ 45,283 $ (30,345 ) $ 14,938 Average CQR 42 409 22 473 394 16,780 17,647 (10,424 ) 7,223 Low CQR - - 62 62 - - 62 - 62 Total $ 217 $ 936 $ 507 $ 1,660 $ 3,656 $ 57,676 $ 62,992 $ (40,769 ) $ 22,223 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 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, 2018 | |
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, 2018 March 31, 2017 Furniture, fixtures and equipment $ 20,167 $ 17,132 Vehicles 336 343 Capitalized software 4,772 4,342 Leasehold improvements 5,252 4,680 Total assets 30,527 26,497 Accumulated depreciation and amortization (23,017 ) (19,807 ) Property and equipment - net $ 7,510 $ 6,690 For the years ended March 31, 2018, 2017 and 2016, depreciation and amortization expense on property and equipment was $4.1 million, $3.0 million, and $2.3 million, respectively. OTHER ASSETS AND LIABILITIES Our other assets and liabilities consist of the following (in thousands): March 31, 2018 March 31, 2017 Other current assets: Deposits & funds held in escrow $ 16,202 $ 39,161 Prepaid assets 7,031 3,388 Other 392 815 Total other current assets $ 23,625 $ 43,364 Property, equipment and other assets: Property and equipment, net $ 7,510 $ 6,690 Deferred costs - non-current 9,302 3,536 Other 2,331 1,730 Total property, equipment and other assets $ 19,143 $ 11,956 March 31, March 31, Other current liabilities: Accrued expenses $ 8,339 $ 7,450 Accrued income taxes payable 175 1,761 Contingent consideration - current 5,806 554 Other 19,050 9,414 Total other current liabilities $ 33,370 $ 19,179 Other liabilities: Deferred revenue - non-current $ 12,910 $ 4,704 Contingent consideration - long-term 7,707 - Other 450 2,376 Total other liabilities $ 21,067 $ 7,080 As of March 31, 2018 and 2017 we had deposits and funds held in escrow of $16.2 million and $39.2 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. The increase as of March 31, 2018 over prior year for other assets – deferred costs of $5.8 million, and $8.2 million for other liabilities deferred revenues is due to an increase in sales of our service contracts which are recognized over the contract term. The increase in other current liabilities other of $9.6 million is due to payments related to financing receivables received from customers as of March 31, 2018, to be forwarded to investors that had purchased these receivable from us. |
NOTES PAYABLE AND CREDIT FACILI
NOTES PAYABLE AND CREDIT FACILITY | 12 Months Ended |
Mar. 31, 2018 | |
NOTES PAYABLE AND CREDIT FACILITY [Abstract] | |
NOTES PAYABLE AND CREDIT FACILITY | 7. Recourse and non-recourse obligations consist of the following (in thousands): March 31, 2018 March 31, 2017 Recourse notes payable with interest rate of 4.11% at March 31, 2018 and rates ranging from 3.20% and 4.13% at March 31, 2017. Current $ 1,343 $ 908 Total recourse notes payable $ 1,343 $ 908 Non-recourse notes payable secured by financing receivables and investments in operating leases with interest rates ranging from 2.04% to 8.45% at March 31, 2018 and ranging from 2.0% to 7.75% as of March 31, 2017. Current $ 40,863 $ 26,085 Long-term 10,072 10,431 Total non-recourse notes payable $ 50,935 $ 36,516 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 4.04% and 3.73%, as of March 31, 2018 and March 31, 2017, respectively. The weighted average interest rate for our recourse notes payable was 4.11% and 3.45%, as of March 31, 2018 and March 31, 2017, 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. Our technology segment, through our subsidiary e On July 27, 2017, we executed an amendment to the WFCDF credit facility which temporarily increases the aggregate limit of the two components from $250.0 million to $325.0 million from the date of the agreement through October 31, 2017, and provides us an election beginning July 1 in each subsequent year to similarly temporarily increase the aggregate limit of the two components to $325.0 million ending the earlier of 90 days following the date of election or October 31 of that same year. 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, 2018, mature as follows (in thousands): Recourse Notes Payable Non-Recourse Notes Payable Year ending March 31, 2019 $ 1,343 $ 40,863 2020 - 8,008 2021 - 2,016 2022 - 48 2023 and thereafter - - $ 1,343 $ 50,935 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2018 | |
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 $6.7 million, $5.6 million, and $4.9 million for the years ended March 31, 2018, 2017 and 2016, respectively. As of March 31, 2018, the future minimum lease payments are due as follows (in thousands): Contractual Obligations Year ending March 31, 2019 $ 6,356 2020 3,847 2021 2,681 2022 1,837 2023 and thereafter 1,201 Operating lease obligations (1) $ 15,922 (1) Excluding taxes, insurance and common area maintenance charges. Legal Proceedings From time to time, we may be subject to legal proceedings that arise in the ordinary course of business. In the opinion of management, there was not at least a reasonable possibility that the Company may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies for asserted legal and other claims. However, the outcome of legal proceedings and claims brought against us is subject to significant uncertainty. Therefore, although management considers the likelihood of such an outcome to be remote, if one or more of these legal matters were resolved against the Company in a reporting period for amounts in excess of management’s expectations, the Company’s consolidated financial statements for that reporting period could be materially adversely affected. 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. 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, 2018 | |
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. 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, 2018, 2017 and 2016 (in thousands, except per share data). Year Ended March 31, 2018 2017 2016 Calculation of earnings per common share - diluted: Net earnings attributable to common shareholders — basic $ 55,122 $ 50,556 $ 44,747 Basic and diluted common shares outstanding: Weighted average common shares outstanding — basic 13,790 13,867 14,513 Effect of dilutive shares 177 161 175 Weighted average shares common outstanding — diluted 13,967 14,028 14,688 Earnings per common share - basic $ 4.00 $ 3.65 $ 3.08 Earnings per common share - diluted $ 3.95 $ 3.60 $ 3.05 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Mar. 31, 2018 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY | 10. 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 15, 2017, The plan authorized purchases to be made from time to time in the open market, or in privately negotiated transactions, subject to availability. Any repurchased shares will have the status of treasury shares and may be used, when needed, for general corporate purposes. During the year ended March 31, 2018, we purchased 409,839 shares of our outstanding common stock at an average cost of $77.18 per share for a total purchase price of $31.6 million under the share repurchase plan. We also acquired 57,725 shares of common stock at a value of $4.4 million to satisfy tax withholding obligations relating to the vesting of employees’ restricted stock. During the year ended March 31, 2017, 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. On April 26, 2018, 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. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Mar. 31, 2018 | |
SHARE-BASED COMPENSATION [Abstract] | |
SHARE-BASED COMPENSATION | 11. SHARE-BASED COMPENSATION Share-Based Plans In each of the years ended March 31, 2018, 2017 and 2016, we issued share-based payment awards and had outstanding share-based payment awards under the following 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 had been 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. Upon shareholder approval of the 2017 Director LTIP, which occurred on September 12, 2017, the 2017 Director LTIP replaced the 2008 Director LTIP, and no new awards were made under the 2008 Director LTIP. However, any outstanding awards previously granted under the 2008 Director LTIP continued in effect. 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 2017 Director LTIP On September 12, 2017, our stockholders approved the 2017 Director LTIP that was adopted by the Board on July 24, 2017. Under the 2017 Director LTIP, 150,000 shares were authorized for grant to non-employee directors. The purpose of the 2017 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. Stock Option Activity During the years ended March 31, 2018, 2017, and 2016, we did not grant any stock options, nor did we have any outstanding stock options. Restricted Stock Activity During the year ended March 31, 2018, we granted 535 restricted shares under the 2008 Director LTIP, 5,558 restricted shares under the 2017 Director LTIP, and 66,530 restricted shares under the 2012 Employee LTIP. Cumulatively, as of March 31, 2018, we granted a total of 258,143 restricted shares under the 2008 Director LTIP, 5,558 restricted shares under the 2017 Director LTIP, and 749,576 restricted shares under the 2012 Employee LTIP A summary of the non-vested restricted shares for year ended March 31, 2018 as follows: Number of Shares Weighted Average Grant- date Fair Value Nonvested April 1, 2017 371,689 $ 40.45 Granted 72,623 $ 80.24 Vested (156,607 ) $ 38.55 Forfeited (5,470 ) $ 43.15 Nonvested March 31, 2018 282,235 $ 51.69 In each of the years ended March 31, 2018, 2017 and 2016, 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, 2018, 2017, and 2016 was $80.24, $43.15, and $40.89, respectively. The aggregated fair value of restricted shares that vested during the years ended March 31, 2018, 2017, and 2016 was $6.0 million, $6.0 million, and $4.7 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, the 2012 Employee LTIP, and the 2017 Director 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, 2018, we withheld 57,725 shares of common stock, at a value of $4.4 million, which was included in treasury stock. For the year ended March 31, 2017, the Company had withheld 59,472 shares of common stock, retroactively adjusted, at a value of $2.6 million, which was included in treasury stock. Compensation Expense We recognize compensation cost for awards of restricted stock with graded vesting on a straight line basis over the requisite service period. We account for forfeitures when they occur. There are no additional conditions for vesting other than service conditions. During the years ended March 31, 2018, 2017 and 2016, we recognized $6.5 million, $6.0 million and $5.7 million, respectively, of total share-based compensation expense. We recognized tax benefits related to share based compensation of $2.5 million and $2.3 million for the years ended March 31, 2017 and 2016, respectively, which were included as a reduction to our provision for income taxes. As of March 31, 2018, the total unrecognized compensation expense related to non-vested restricted stock was $9.4 million, which is expected to be recognized over a weighted-average period of 27 months. We also provide our employees with a contributory 401(k) profit sharing plan. For the years ended March 31, 2018, 2017 and 2016, our employer contributions for the plan were approximately $2.1 million, $1.9 million and $1.4 million, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2018 | |
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, 2018, and March 31, 2017. We had no additions or reductions to our gross on certain income tax positions during the year ended March 31, 2018. 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 2015, 2016 and 2017 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. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code that will affect our fiscal year ended March 31, 2018, including, but not limited to, (1) reducing the U.S. federal corporate tax rate, and (2) bonus depreciation that will allow for full expensing of qualified property. The Tax Act reduces the federal corporate tax rate to 21 percent in the fiscal year ending March 31, 2018. Section 15 of the Internal Revenue Code stipulates that our fiscal year ending March 31, 2018, will have a blended corporate tax rate of 31.5 percent, which is based on the applicable tax rates before and after the Tax Act and the number of days in the year. The SEC staff issued SAB 118, which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. Our accounting for the effect of the Tax Act is complete. We have recorded a net benefit to tax expense of $1.7 million. A reconciliation of income taxes computed at the statutory federal income tax rate of 31.5% to the provision for income taxes included in the consolidated statements of operations is as follows (in thousands, except percentages): Year Ended March 31, 2018 2017 2016 Statutory federal income tax rate 31.5 % 35.0 % 35.0 % Income tax expense computed at the U.S. statutory federal rate $ 26,505 $ 30,134 $ 26,513 Effect of federal reduction of statutory rate $ (1,654 ) State income tax expense—net of federal benefit 3,842 4,193 3,544 Non-deductible executive compensation 658 512 331 Other (582 ) 717 616 Provision for income taxes $ 28,769 $ 35,556 $ 31,004 Effective income tax rate 34.3 % 41.3 % 40.9 % The components of the provision for income taxes are as follows (in thousands): Year Ended March 31, 2018 2017 2016 Current: Federal $ 23,196 $ 29,619 $ 21,361 State 5,377 7,001 6,114 Foreign 240 132 13 Total current expense 28,813 36,752 27,488 Deferred: Federal (611 ) (622 ) 3,727 State 154 (432 ) (211 ) Foreign 413 (142 ) - Total deferred expense (benefit) (44 ) (1,196 ) 3,516 Provision for income taxes $ 28,769 $ 35,556 $ 31,004 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, 2018 2017 Deferred Tax Assets: Accrued vacation $ 1,596 $ 2,217 Deferred revenue 668 3,107 Foreign net operating loss carryforward - 462 Reserve for credit losses 607 2,026 Restricted stock 1,270 1,779 Other accruals and reserves 1,497 2,555 Other credits and carryforwards 1,335 1,166 Gross deferred tax assets 6,973 13,312 Less: valuation allowance (1,335 ) (1,270 ) Net deferred tax assets 5,638 12,042 Deferred Tax Liabilities: Basis difference in fixed assets (1,570 ) (1,399 ) Basis difference in operating leases (4,517 ) (9,926 ) Basis difference in tax deductible goodwill (1,213 ) (2,516 ) Total deferred tax liabilities (7,300 ) (13,841 ) Net deferred tax liabilities $ (1,662 ) $ (1,799 ) The effective income tax rate for the year ended March 31, 2018 was 34.3%, compared to 41.3% of the previous fiscal year. As of March 31, 2018, 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. As of March 31, 2018, we expect to utilize all of the net operating loss. 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, 2018 | |
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, 2018 and 2017 (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 (Level 3) March 31, 2018 Assets: Money market funds $ 60,385 $ 60,385 $ - $ - Liabilities: Contingent consideration $ 13,513 $ - $ - $ 13,513 March 31, 2017 Assets: Money market funds $ 50,866 $ 50,866 $ - $ - Liabilities: Contingent consideration $ 554 $ - $ - $ 554 During the year ended March 31, 2018, we recorded $12.0 million in initial contingent consideration due to business acquisitions During the years ended March 31, 2018 and 2017, we paid $0.6 million and $0.7 million, respectively, to satisfy the current obligations of the contingent consideration arrangement. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Mar. 31, 2018 | |
BUSINESS COMBINATIONS [Abstract] | |
BUSINESS COMBINATIONS | 14. Integrated Data Storage, LLC acquisition On September 15, 2017, our subsidiary e Plus Technology, inc. acquired of Integrated Data Storage, LLC (“IDS”) though an asset purchase agreement. Headquartered in Oak Brook, IL and with offices in downtown Chicago and Indianapolis, IDS is an advanced data center solutions provider focused on cloud enablement and managed services, including its proprietary IDS Cloud, which features enterprise-class technology infrastructure coupled with consulting services to support private, hybrid, and public cloud deployments. The acquisition expands e Plus’ footprint in the Midwest and enhances its sales and engineering capabilities in cloud services, disaster recovery and backup as a service, storage, data center, and professional services. Our sum of total consideration transferred is $38.4 million, consisting of $29.8 million paid in cash at closing, less $1.4 million paid back as a working capital adjustment , plus an additional $10.0 million equal to the acquisition date fair value of consideration that is contingent on the acquired business’ future gross profit. The contingent consideration was calculated using the Monte Carlo simulation model based on our projections of future gross profits. The maximum payout of the contingent consideration is $15.0 million paid over 3 years. Acquisition Date Amount Accounts receivable and other assets $ 14,353 Property and equipment 1,620 Identified intangible assets 13,650 Accounts payable and other current liabilities (12,313 ) Total identifiable net assets 17,310 Goodwill 21,088 Total purchase consideration $ 38,398 The identified intangible assets of $13.7 million consist of customer relationships with an estimated useful life of 8 years. The fair value of acquired receivables equals the gross contractual amounts receivable. We expect to collect all acquired receivables. We recognized goodwill related to this transaction of $21.1 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, 2017, is not material. OneCloud Consulting Inc. acquisition On May 17, 2017, our subsidiary e Plus Technology, inc., acquired 100% of the stock of OneCloud Consulting, Inc. (“OneCloud”). Based in Milpitas, CA, OneCloud is a versatile team of highly trained technology consultants, architects, developers and instructors. OneCloud enables its customers’ cloud and application strategy via professional services, technical education and software development. The acquisition provides us with additional ability to address customers’ needs in cloud-based solutions and infrastructure, including DevOps, OpenStack, and other emerging technologies, to our broad customer base. Our sum of total consideration we transferred was $10.0 million consisting of $7.9 million paid in cash at closing, net of cash acquired, and $2.1 million equal to the fair value of contingent consideration, calculated using the Monte Carlo simulation model. The maximum payout of the contingent consideration is $4.5 million paid over 3 years. Our allocation of the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands): Acquisition Date Amount Accounts receivable and other assets $ 488 Identified intangible assets 4,130 Accounts payable and other current liabilities (1,822 ) Total identifiable net assets 2,796 Goodwill 7,189 Total purchase consideration $ 9,985 The identified intangible assets of $4.1 million consist of customer relationships of $1.7 million with an estimated useful life of 8 years, and internally developed processes of $2.4 million with an estimated useful life of 5 years. We recognized goodwill related to this transaction of $7.2 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, 2017, is not material. 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 4,090 Accounts payable and other current liabilities (5,786 ) Total identifiable net assets 6,840 Goodwill 6,227 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 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 U.K. and European markets and |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Mar. 31, 2018 | |
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. Our CODM is our Chief Executive Officer and President. Our CODM conducts our operations 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, 2018 2017 2016 Statement of Operations Technology Financing Total Technology Financing Total Technology Financing Total Sales of product and services $ 1,364,145 $ - $ 1,364,145 $ 1,290,228 $ - $ 1,290,228 $ 1,163,337 $ - $ 1,163,337 Financing revenue - 40,671 40,671 - 34,200 34,200 - 35,091 35,091 Fee and other income 5,387 794 6,181 4,709 252 4,961 5,728 43 5,771 Net sales 1,369,532 41,465 1,410,997 1,294,937 34,452 1,329,389 1,169,065 35,134 1,204,199 Cost of sales, product and services 1,082,245 - 1,082,245 1,025,188 - 1,025,188 931,782 - 931,782 Direct lease costs - 5,270 5,270 - 4,442 4,442 - 10,360 10,360 Cost of sales 1,082,245 5,270 1,087,515 1,025,188 4,442 1,029,630 931,782 10,360 942,142 Selling, general, and administrative expenses 214,980 13,147 228,127 193,594 11,638 205,232 167,992 10,988 178,980 Depreciation and amortization 9,918 3 9,921 7,243 9 7,252 5,532 16 5,548 Interest and financing costs - 1,195 1,195 - 1,543 1,543 70 1,708 1,778 Operating expenses 224,898 14,345 239,243 200,837 13,190 214,027 173,594 12,712 186,306 Operating income 62,389 21,850 84,239 68,912 16,820 85,732 63,689 12,062 75,751 Other income and (expense) (348 ) 380 - Earnings before taxes $ 83,891 $ 86,112 $ 75,751 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 10,461 $ 5,366 $ 15,827 $ 7,365 $ 4,366 $ 11,731 $ 5,641 $ 10,339 $ 15,980 Purchases of property, equipment and operating lease equipment $ 5,353 $ 2,237 $ 7,590 $ 3,356 $ 6,202 $ 9,558 $ 2,442 $ 12,026 $ 14,468 Selected Financial Data - Balance Sheet Total assets $ 541,009 $ 217,695 $ 758,704 $ 533,560 $ 208,160 $ 741,720 $ 427,580 $ 189,100 $ 616,680 The geographic information for the years ended March 31, 2018, 2017 and 2016 was as follows (in thousands): Year Ended March 31, 2018 2017 2016 Net sales: U.S. $ 1,341,449 $ 1,293,705 $ 1,186,904 Non U.S. 69,548 35,684 17,295 Total $ 1,410,997 $ 1,329,389 $ 1,204,199 As of March 31, 2018 2017 Long-lived tangible assets: U.S. $ 24,445 $ 31,450 Non U.S. 494 1,878 Total $ 24,939 $ 33,328 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, 2018 and 2017, sales to a large technology company were approximately 12% and 13% of net sales, respectively, all of which related to our technology segment. No single customer accounted for more than 10% of net sales for the year ended March 31, 2016. |
QUARTERLY DATA -UNAUDITED
QUARTERLY DATA -UNAUDITED | 12 Months Ended |
Mar. 31, 2018 | |
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, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Annual Amount Net sales $ 367,157 $ 370,845 $ 342,569 $ 330,426 $ 1,410,997 Cost of sales 289,564 283,274 265,881 248,796 1,087,515 Gross profit 77,593 87,571 76,688 81,630 323,482 Selling, general, and administrative expenses 54,664 56,340 57,134 59,989 228,127 Depreciation and amortization 2,063 2,129 2,894 2,835 9,921 Interest and financing costs 359 274 270 292 1,195 Operating expenses 57,086 58,743 60,298 63,116 239,243 Operating income 20,507 28,828 16,390 18,514 84,239 Other income and (expense) 271 (141 ) (131 ) (347 ) (348 ) Earnings before provision for income taxes 20,778 28,687 16,259 18,167 83,891 Provision for income taxes 7,355 11,466 678 9,270 28,769 Net earnings $ 13,423 $ 17,221 $ 15,581 $ 8,897 $ 55,122 Net earnings per common share—Basic (1) $ 0.97 $ 1.24 $ 1.12 $ 0.65 $ 4.00 Net earnings per common share—Diluted (1) $ 0.96 $ 1.23 $ 1.11 $ 0.65 $ 3.95 (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, 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. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Mar. 31, 2018 | |
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 Beginning of Period Charged to Costs and Expenses Deductions/ Write-Offs Balance at End of Period Allowance for Sales Returns: (1) Year Ended March 31, 2016 613 1,500 (1,460 ) 653 Year Ended March 31, 2017 653 1,530 (1,431 ) 752 Year Ended March 31, 2018 752 2,579 (2,432 ) 899 Reserve for Credit Losses: Year Ended March 31, 2016 5,623 (242 ) (188 ) 5,193 Year Ended March 31, 2017 5,193 277 (78 ) 5,392 Year Ended March 31, 2018 5,392 462 (3,190 ) 2,664 Valuation for Deferred Taxes: Year Ended March 31, 2016 1,223 47 - 1,270 Year Ended March 31, 2017 1,270 - - 1,270 Year Ended March 31, 2018 1,270 65 - 1,335 (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 $5.3 million, $4.6 million, and $4.0 million as of March 31, 2018, 2017, and 2016, respectively. |
ORGANIZATION AND SUMMARY OF S25
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
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. 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, 2018 and March 31, 2017. |
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, unearned income equals the difference between the gross investment in the lease and the cost of the leased equipment. For sales type leases, unearned income equals the difference between the gross investment in the lease and the sum of the present values of the individual components of the gross investment in 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, which represented approximately 43%, 47%, and 49%, of our technology segment net sales for the years ended March 31, 2018, 2017, and 2016, respectively. 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 $247 thousand and $520 thousand as of March 31, 2018 and 2017, respectively. |
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 |
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. |
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, 2018 and 2017 were $12.8 million and $7.8 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, 2018, 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, 2018, the carrying amount of notes receivables, recourse and non-recourse payables were $62.9 million, $1.3 million and $50.9 million, respectively and the fair value of notes receivables, recourse and non-recourse payables were $63.0 million, $1.3 million and $51.1 million, respectively. 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. |
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, 2018 | |
RECENTLY ACCOUNTING PRONOUNCEMENTS [Abstract] | |
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) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date We 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. We will adopt the guidance in our quarter ending June 30, 2018 and will use the full retrospective method. We finalized our accounting policies under the new standard and we have determined: · The accounting for revenue within our technology segment related to the sale of third-party products, software, services, as well as our professional and managed services will remain substantially unchanged. · The accounting for bill and hold transactions will result in revenue for certain of those arrangements being recognized earlier than under current GAAP. This change will result in an increase in net sales and decrease in deferred revenue of $3.2 million and an increase in cost of sales and decrease in deferred costs of $3.1 million, respectively, for the year ended March 31, 2018. This change does not impact the financial statements for the years ended March 31, 2017 or 2016. · We will recognize revenues on the sale of off-lease equipment on a gross basis under the new revenue standard, which we currently recognize on a net basis. This will result in an increase to our reported net sales of $4.5 million, $2.4 million, and $4.5 million for the years ended March 31, 2018, 2017 and 2016, respectively. · The adoption of this standard will not materially impact our consolidated balance sheet or cash flows from operations. In November 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, 2018 | |
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, 2018 Notes Receivables Lease-Related Receivables Total Financing Receivables Minimum payments $ 62,992 $ 65,943 $ 128,935 Estimated unguaranteed residual value (1) - 11,226 11,226 Initial direct costs, net of amortization (2) 375 334 709 Unearned income - (8,251 ) (8,251 ) Reserve for credit losses (3) (486 ) (640 ) (1,126 ) Total, net $ 62,881 $ 68,612 $ 131,493 Reported as: Current $ 39,993 $ 29,943 $ 69,936 Long-term 22,888 38,669 61,557 Total, net $ 62,881 $ 68,612 $ 131,493 (1) Includes estimated unguaranteed residual values of $6,004 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 $341 thousand. (3) For details on reserve for credit losses, refer to Note 5, “Reserves for Credit Losses.” March 31, 2017 Notes Receivables Lease-Related Receivables Total Financing Receivables 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.” |
Future Scheduled Minimum Lease Payments | Future scheduled minimum lease payments for investments in direct financing and sales-type leases as of March 31, 2018 are as follows (in thousands): Year ending March 31, 2019 $ 34,596 2020 18,218 2021 9,764 2022 2,380 2023 and thereafter 985 Total $ 65,943 |
Investment in Operating Lease Equipment - 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, 2018 March 31, 2017 Cost of equipment under operating leases $ 15,683 $ 16,725 Accumulated depreciation (8,729 ) (8,449 ) Investment in operating lease equipment—net (1) $ 6,954 $ 8,276 (1) Amounts include estimated unguaranteed residual values of $1,921 thousand and $1,117 thousand as of March 31, 2018 and 2017, respectively. |
Future Minimum Rental Payments for Operating Leases | Future scheduled minimum lease rental payments as of March 31, 2018 are as follows (in thousands): Year ending March 31, 2019 $ 5,103 2020 1,638 2021 788 2022 5 2023 and thereafter - Total $ 7,534 |
GOODWILL AND OTHER INTANGIBLE28
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
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, 2018 and March 31, 2017, respectively (in thousands): Year Ended March 31, 2018 Year Ended March 31, 2017 Goodwill Accumulated Impairment Loss Net Carrying Amount Goodwill Accumulated Impairment Loss Net Carrying Amount Beginning Balance $ 57,070 $ (8,673 ) $ 48,397 $ 50,824 $ (8,673 ) $ 42,151 Acquisitions 27,996 - 27,996 6,507 - 6,507 Foreign currency translations 231 - 231 (261 ) - (261 ) Ending Balance $ 85,297 $ (8,673 ) $ 76,624 $ 57,070 $ (8,673 ) $ 48,397 |
Components of Other Intangible Assets | Our other intangible assets consist of the following at March 31, 2018 and March 31, 2017 (in thousands): March 31, 2018 March 31, 2017 Gross Carrying Amount Accumulated Amortization / Impairment Loss Net Carrying Amount Gross Carrying Amount Accumulated Amortization / Impairment Loss Net Carrying Amount Customer relationships & other intangibles $ 41,895 $ (18,634 ) $ 23,261 $ 23,373 $ (12,553 ) $ 10,820 Capitalized software development 5,608 (2,567 ) 3,041 3,649 (2,310 ) 1,339 Total $ 47,503 $ (21,201 ) $ 26,302 $ 27,022 $ (14,863 ) $ 12,159 |
RESERVES FOR CREDIT LOSSES (Tab
RESERVES FOR CREDIT LOSSES (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
RESERVES FOR CREDIT LOSSES [Abstract] | |
Activity in Reserves for Credit Losses | Activity in our reserves for credit losses for the years ended March 31, 2018, 2017 and 2016 were as follows (in thousands): Accounts Receivable Notes Receivable Lease-Related Receivables Total Balance April 1, 2017 $ 1,279 $ 3,434 $ 679 $ 5,392 Provision for credit losses 264 73 125 462 Write-offs and other (5 ) (3,021 ) (164 ) (3,190 ) Balance March 31, 2018 $ 1,538 $ 486 $ 640 $ 2,664 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 |
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, 2018 March 31, 2017 Notes Receivable Lease- Related Receivables Notes Receivable Lease- Related Receivables Reserves for credit losses: Ending balance: collectively evaluated for impairment $ 424 $ 640 $ 348 $ 556 Ending balance: individually evaluated for impairment 62 - 3,086 123 Ending balance $ 486 $ 640 $ 3,434 $ 679 Minimum payments: Ending balance: collectively evaluated for impairment $ 62,930 $ 65,943 $ 45,438 $ 57,730 Ending balance: individually evaluated for impairment 62 - 3,086 142 Ending balance $ 62,992 $ 65,943 $ 48,524 $ 57,872 |
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, 2018 and 2017 (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, 2018 High CQR $ 143 $ 40 $ 43 $ 226 $ 224 $ 33,779 $ 34,229 $ (3,743 ) $ (17,207 ) $ 13,279 Average CQR 109 31 117 257 171 31,286 31,714 (2,749 ) (16,012 ) 12,953 Low CQR - - - - - - - - - - Total $ 252 $ 71 $ 160 $ 483 $ 395 $ 65,065 $ 65,943 $ (6,492 ) $ (33,219 ) $ 26,232 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 |
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, 2018 and 2017 (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, 2018 High CQR $ 175 $ 527 $ 423 $ 1,125 $ 3,262 $ 40,896 $ 45,283 $ (30,345 ) $ 14,938 Average CQR 42 409 22 473 394 16,780 17,647 (10,424 ) 7,223 Low CQR - - 62 62 - - 62 - 62 Total $ 217 $ 936 $ 507 $ 1,660 $ 3,656 $ 57,676 $ 62,992 $ (40,769 ) $ 22,223 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 |
PROPERTY, EQUIPMENT, AND OTHE30
PROPERTY, EQUIPMENT, AND OTHER ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
PROPERTY, EQUIPMENT, AND OTHER ASSETS AND LIABILITIES [Abstract] | |
Property and Equipment-Net | Property and equipment—net consists of the following (in thousands): March 31, 2018 March 31, 2017 Furniture, fixtures and equipment $ 20,167 $ 17,132 Vehicles 336 343 Capitalized software 4,772 4,342 Leasehold improvements 5,252 4,680 Total assets 30,527 26,497 Accumulated depreciation and amortization (23,017 ) (19,807 ) Property and equipment - net $ 7,510 $ 6,690 |
Property, Equipment, Other Assets and Liabilities | Our other assets and liabilities consist of the following (in thousands): March 31, 2018 March 31, 2017 Other current assets: Deposits & funds held in escrow $ 16,202 $ 39,161 Prepaid assets 7,031 3,388 Other 392 815 Total other current assets $ 23,625 $ 43,364 Property, equipment and other assets: Property and equipment, net $ 7,510 $ 6,690 Deferred costs - non-current 9,302 3,536 Other 2,331 1,730 Total property, equipment and other assets $ 19,143 $ 11,956 March 31, March 31, Other current liabilities: Accrued expenses $ 8,339 $ 7,450 Accrued income taxes payable 175 1,761 Contingent consideration - current 5,806 554 Other 19,050 9,414 Total other current liabilities $ 33,370 $ 19,179 Other liabilities: Deferred revenue - non-current $ 12,910 $ 4,704 Contingent consideration - long-term 7,707 - Other 450 2,376 Total other liabilities $ 21,067 $ 7,080 |
NOTES PAYABLE AND CREDIT FACI31
NOTES PAYABLE AND CREDIT FACILITY (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
NOTES PAYABLE AND CREDIT FACILITY [Abstract] | |
Non-recourse and Recourse Obligations | Recourse and non-recourse obligations consist of the following (in thousands): March 31, 2018 March 31, 2017 Recourse notes payable with interest rate of 4.11% at March 31, 2018 and rates ranging from 3.20% and 4.13% at March 31, 2017. Current $ 1,343 $ 908 Total recourse notes payable $ 1,343 $ 908 Non-recourse notes payable secured by financing receivables and investments in operating leases with interest rates ranging from 2.04% to 8.45% at March 31, 2018 and ranging from 2.0% to 7.75% as of March 31, 2017. Current $ 40,863 $ 26,085 Long-term 10,072 10,431 Total non-recourse notes payable $ 50,935 $ 36,516 |
Recourse and non-recourse Notes Payable | Recourse and non-recourse notes payable as of March 31, 2018, mature as follows (in thousands): Recourse Notes Payable Non-Recourse Notes Payable Year ending March 31, 2019 $ 1,343 $ 40,863 2020 - 8,008 2021 - 2,016 2022 - 48 2023 and thereafter - - $ 1,343 $ 50,935 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Future Minimum Rental Payments for Operating Leases | As of March 31, 2018, the future minimum lease payments are due as follows (in thousands): Contractual Obligations Year ending March 31, 2019 $ 6,356 2020 3,847 2021 2,681 2022 1,837 2023 and thereafter 1,201 Operating lease obligations (1) $ 15,922 (1) Excluding taxes, insurance and common area maintenance charges. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
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, 2018, 2017 and 2016 (in thousands, except per share data). Year Ended March 31, 2018 2017 2016 Calculation of earnings per common share - diluted: Net earnings attributable to common shareholders — basic $ 55,122 $ 50,556 $ 44,747 Basic and diluted common shares outstanding: Weighted average common shares outstanding — basic 13,790 13,867 14,513 Effect of dilutive shares 177 161 175 Weighted average shares common outstanding — diluted 13,967 14,028 14,688 Earnings per common share - basic $ 4.00 $ 3.65 $ 3.08 Earnings per common share - diluted $ 3.95 $ 3.60 $ 3.05 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
SHARE-BASED COMPENSATION [Abstract] | |
Summary of Restricted Shares | A summary of the non-vested restricted shares for year ended March 31, 2018 as follows: Number of Shares Weighted Average Grant- date Fair Value Nonvested April 1, 2017 371,689 $ 40.45 Granted 72,623 $ 80.24 Vested (156,607 ) $ 38.55 Forfeited (5,470 ) $ 43.15 Nonvested March 31, 2018 282,235 $ 51.69 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
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 31.5% to the provision for income taxes included in the consolidated statements of operations is as follows (in thousands, except percentages): Year Ended March 31, 2018 2017 2016 Statutory federal income tax rate 31.5 % 35.0 % 35.0 % Income tax expense computed at the U.S. statutory federal rate $ 26,505 $ 30,134 $ 26,513 Effect of federal reduction of statutory rate $ (1,654 ) State income tax expense—net of federal benefit 3,842 4,193 3,544 Non-deductible executive compensation 658 512 331 Other (582 ) 717 616 Provision for income taxes $ 28,769 $ 35,556 $ 31,004 Effective income tax rate 34.3 % 41.3 % 40.9 % |
Components of Provision for Income Taxes | The components of the provision for income taxes are as follows (in thousands): Year Ended March 31, 2018 2017 2016 Current: Federal $ 23,196 $ 29,619 $ 21,361 State 5,377 7,001 6,114 Foreign 240 132 13 Total current expense 28,813 36,752 27,488 Deferred: Federal (611 ) (622 ) 3,727 State 154 (432 ) (211 ) Foreign 413 (142 ) - Total deferred expense (benefit) (44 ) (1,196 ) 3,516 Provision for income taxes $ 28,769 $ 35,556 $ 31,004 |
Components of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities were as follows (in thousands): March 31, 2018 2017 Deferred Tax Assets: Accrued vacation $ 1,596 $ 2,217 Deferred revenue 668 3,107 Foreign net operating loss carryforward - 462 Reserve for credit losses 607 2,026 Restricted stock 1,270 1,779 Other accruals and reserves 1,497 2,555 Other credits and carryforwards 1,335 1,166 Gross deferred tax assets 6,973 13,312 Less: valuation allowance (1,335 ) (1,270 ) Net deferred tax assets 5,638 12,042 Deferred Tax Liabilities: Basis difference in fixed assets (1,570 ) (1,399 ) Basis difference in operating leases (4,517 ) (9,926 ) Basis difference in tax deductible goodwill (1,213 ) (2,516 ) Total deferred tax liabilities (7,300 ) (13,841 ) Net deferred tax liabilities $ (1,662 ) $ (1,799 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
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, 2018 and 2017 (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 (Level 3) March 31, 2018 Assets: Money market funds $ 60,385 $ 60,385 $ - $ - Liabilities: Contingent consideration $ 13,513 $ - $ - $ 13,513 March 31, 2017 Assets: Money market funds $ 50,866 $ 50,866 $ - $ - Liabilities: Contingent consideration $ 554 $ - $ - $ 554 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Integrated Data Storage LLC [Member] | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed | Our allocation of the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands): Acquisition Date Amount Accounts receivable and other assets $ 14,353 Property and equipment 1,620 Identified intangible assets 13,650 Accounts payable and other current liabilities (12,313 ) Total identifiable net assets 17,310 Goodwill 21,088 Total purchase consideration $ 38,398 |
OneCloud Consulting, Inc [Member] | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed | Our allocation of the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands): Acquisition Date Amount Accounts receivable and other assets $ 488 Identified intangible assets 4,130 Accounts payable and other current liabilities (1,822 ) Total identifiable net assets 2,796 Goodwill 7,189 Total purchase consideration $ 9,985 |
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 4,090 Accounts payable and other current liabilities (5,786 ) Total identifiable net assets 6,840 Goodwill 6,227 Total purchase consideration $ 13,067 |
IGX Acquisition [Member] | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed | The allocation of the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands): Acquisition Date Amount Accounts receivable—trade, net $ 8,457 Property and equipment 81 Identified intangible assets 8,710 Accounts payable and other current liabilities (8,641 ) Deferred tax liability (89 ) Total identifiable net assets 8,518 Goodwill 8,131 Total purchase consideration $ 16,649 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
SEGMENT REPORTING [Abstract] | |
Segment Reporting Information, by Reportable Segment | Our reportable segment information was as follows (in thousands): Year Ended March 31, 2018 2017 2016 Statement of Operations Technology Financing Total Technology Financing Total Technology Financing Total Sales of product and services $ 1,364,145 $ - $ 1,364,145 $ 1,290,228 $ - $ 1,290,228 $ 1,163,337 $ - $ 1,163,337 Financing revenue - 40,671 40,671 - 34,200 34,200 - 35,091 35,091 Fee and other income 5,387 794 6,181 4,709 252 4,961 5,728 43 5,771 Net sales 1,369,532 41,465 1,410,997 1,294,937 34,452 1,329,389 1,169,065 35,134 1,204,199 Cost of sales, product and services 1,082,245 - 1,082,245 1,025,188 - 1,025,188 931,782 - 931,782 Direct lease costs - 5,270 5,270 - 4,442 4,442 - 10,360 10,360 Cost of sales 1,082,245 5,270 1,087,515 1,025,188 4,442 1,029,630 931,782 10,360 942,142 Selling, general, and administrative expenses 214,980 13,147 228,127 193,594 11,638 205,232 167,992 10,988 178,980 Depreciation and amortization 9,918 3 9,921 7,243 9 7,252 5,532 16 5,548 Interest and financing costs - 1,195 1,195 - 1,543 1,543 70 1,708 1,778 Operating expenses 224,898 14,345 239,243 200,837 13,190 214,027 173,594 12,712 186,306 Operating income 62,389 21,850 84,239 68,912 16,820 85,732 63,689 12,062 75,751 Other income and (expense) (348 ) 380 - Earnings before taxes $ 83,891 $ 86,112 $ 75,751 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 10,461 $ 5,366 $ 15,827 $ 7,365 $ 4,366 $ 11,731 $ 5,641 $ 10,339 $ 15,980 Purchases of property, equipment and operating lease equipment $ 5,353 $ 2,237 $ 7,590 $ 3,356 $ 6,202 $ 9,558 $ 2,442 $ 12,026 $ 14,468 Selected Financial Data - Balance Sheet Total assets $ 541,009 $ 217,695 $ 758,704 $ 533,560 $ 208,160 $ 741,720 $ 427,580 $ 189,100 $ 616,680 |
Geographical Information | The geographic information for the years ended March 31, 2018, 2017 and 2016 was as follows (in thousands): Year Ended March 31, 2018 2017 2016 Net sales: U.S. $ 1,341,449 $ 1,293,705 $ 1,186,904 Non U.S. 69,548 35,684 17,295 Total $ 1,410,997 $ 1,329,389 $ 1,204,199 As of March 31, 2018 2017 Long-lived tangible assets: U.S. $ 24,445 $ 31,450 Non U.S. 494 1,878 Total $ 24,939 $ 33,328 |
QUARTERLY DATA -UNAUDITED (Tabl
QUARTERLY DATA -UNAUDITED (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
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, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Annual Amount Net sales $ 367,157 $ 370,845 $ 342,569 $ 330,426 $ 1,410,997 Cost of sales 289,564 283,274 265,881 248,796 1,087,515 Gross profit 77,593 87,571 76,688 81,630 323,482 Selling, general, and administrative expenses 54,664 56,340 57,134 59,989 228,127 Depreciation and amortization 2,063 2,129 2,894 2,835 9,921 Interest and financing costs 359 274 270 292 1,195 Operating expenses 57,086 58,743 60,298 63,116 239,243 Operating income 20,507 28,828 16,390 18,514 84,239 Other income and (expense) 271 (141 ) (131 ) (347 ) (348 ) Earnings before provision for income taxes 20,778 28,687 16,259 18,167 83,891 Provision for income taxes 7,355 11,466 678 9,270 28,769 Net earnings $ 13,423 $ 17,221 $ 15,581 $ 8,897 $ 55,122 Net earnings per common share—Basic (1) $ 0.97 $ 1.24 $ 1.12 $ 0.65 $ 4.00 Net earnings per common share—Diluted (1) $ 0.96 $ 1.23 $ 1.11 $ 0.65 $ 3.95 (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, 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. |
ORGANIZATION AND SUMMARY OF S40
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | Jan. 27, 2017 | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) |
Stock Split [Abstract] | |||
Stock split ratio | 2 | 2 | |
REVENUE RECOGNITION [Abstract] | |||
Lease criteria minimum estimated economic life | 75.00% | ||
Lease criteria minimum fair value of lease payments at inception of lease | 90.00% | ||
INVENTORIES [Abstract] | |||
Allowance for obsolescence | $ 247 | $ 520 | |
VENDOR CONSIDERATION [Abstract] | |||
Amount due from vendors | 12,800 | 7,800 | |
FOREIGN CURRENCY TRANSLATION [Abstract] | |||
Foreign currency transaction loss | $ (800) | (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 | $ 62,900 | 45,400 | |
Recourse payable, fair value disclosure | 1,300 | 900 | |
Non-recourse payable, fair value disclosure | 50,900 | 36,500 | |
Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes receivable, fair value disclosure | 63,000 | 44,000 | |
Recourse payable, fair value disclosure | 1,300 | 900 | |
Non-recourse payable, fair value disclosure | $ 51,100 | $ 36,400 |
ORGANIZATION AND SUMMARY OF S41
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Concentration of Risk, Property, Plant and Equipment and Capitalization of Software for Internal Use (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 26,302 | $ 12,159 | |
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 Licenses [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 | $ 2,100 | 900 | |
Other assets | $ 3,300 | $ 1,100 | |
Product Sales [Member] | Cisco Systems [Member] | |||
Concentration of risk [Abstract] | |||
Percentage of concentration risk | 43.00% | 47.00% | 49.00% |
Product Sales [Member] | Hewlett Packard [Member] | |||
Concentration of risk [Abstract] | |||
Percentage of concentration risk | 6.00% | 6.00% | 7.00% |
Product Sales [Member] | NetApp [Member] | |||
Concentration of risk [Abstract] | |||
Percentage of concentration risk | 4.00% | 5.00% | 5.00% |
RECENT ACCOUNTING PRONOUNCEME42
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net sales | $ 330,426 | $ 342,569 | $ 370,845 | $ 367,157 | $ 332,767 | $ 326,657 | $ 371,462 | $ 298,503 | $ 1,410,997 | $ 1,329,389 | $ 1,204,199 |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ASU 2014-09 [Member] | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net sales | $ 4,200 | $ 2,400 | $ 4,500 |
FINANCING RECEIVABLES AND OPE43
FINANCING RECEIVABLES AND OPERATING LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Reserve for credit losses | $ (2,664) | $ (5,392) | $ (5,193) | |||
Reported as [Abstract] | ||||||
Current | 69,936 | 51,656 | ||||
Estimated unguaranteed residual values for direct financing lease | 6,004 | 12,677 | ||||
Accumulated amortization of initial direct cost | 341 | 510 | ||||
Collateral for non-recourse notes payable - Financing receivables | 52,000 | 33,100 | ||||
Collateral for non-recourse notes payable - Operating leases | 5,300 | 6,600 | ||||
Gain on sale of financing receivables | 6,800 | 8,100 | 7,400 | |||
Proceeds from sale of financing receivables | 267,300 | 339,400 | 223,300 | |||
Deferred revenue for servicing obligation | 500 | 500 | ||||
Future scheduled minimum lease payments [Abstract] | ||||||
Year ending March 31, 2019 | 34,596 | |||||
2,020 | 18,218 | |||||
2,021 | 9,764 | |||||
2,022 | 2,380 | |||||
2023 and thereafter | 985 | |||||
Total | 65,943 | |||||
Investment in operating lease equipment - net [Abstract] | ||||||
Cost of equipment under operating leases | 15,683 | 16,725 | ||||
Accumulated depreciation | (8,729) | (8,449) | ||||
Investment in operating lease equipment - net | [1] | 6,954 | 8,276 | |||
Unguaranteed residual value of operating lease equipment net | 1,921 | 1,117 | ||||
Maximum potential future payments related guarantees | 400 | |||||
Future scheduled minimum lease rental payments [Abstract] | ||||||
Year ending March 31, 2019 | 5,103 | |||||
2,020 | 1,638 | |||||
2,021 | 788 | |||||
2,022 | 5 | |||||
2023 and thereafter | 0 | |||||
Total | 7,534 | |||||
Notes Receivables [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Minimum payments | 62,992 | 48,524 | ||||
Estimated unguaranteed residual value | 0 | [2] | 0 | [3] | ||
Initial direct costs, net of amortization | 375 | [4] | 279 | [5] | ||
Unearned income | 0 | 0 | ||||
Reserve for credit losses | (486) | [6] | (3,434) | [6] | (3,381) | |
Total, net | 62,881 | 45,369 | ||||
Reported as [Abstract] | ||||||
Current | 39,993 | 23,780 | ||||
Long-term | 22,888 | 21,589 | ||||
Total, net | 62,881 | 45,369 | ||||
Lease-Related Receivables [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Minimum payments | 65,943 | 57,872 | ||||
Estimated unguaranteed residual value | 11,226 | [2] | 18,273 | [3] | ||
Initial direct costs, net of amortization | 334 | [4] | 341 | [5] | ||
Unearned income | (8,251) | (5,913) | ||||
Reserve for credit losses | (640) | [6] | (679) | [6] | $ (685) | |
Total, net | 68,612 | 69,894 | ||||
Reported as [Abstract] | ||||||
Current | 29,943 | 27,876 | ||||
Long-term | 38,669 | 42,018 | ||||
Total, net | 68,612 | 69,894 | ||||
Total Financing Receivables [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Minimum payments | 128,935 | 106,396 | ||||
Estimated unguaranteed residual value | 11,226 | [2] | 18,273 | [3] | ||
Initial direct costs, net of amortization | 709 | [4] | 620 | [5] | ||
Unearned income | (8,251) | (5,913) | ||||
Reserve for credit losses | [6] | (1,126) | (4,113) | |||
Total, net | 131,493 | 115,263 | ||||
Reported as [Abstract] | ||||||
Current | 69,936 | 51,656 | ||||
Long-term | 61,557 | 63,607 | ||||
Total, net | $ 131,493 | $ 115,263 | ||||
[1] | Amounts include estimated unguaranteed residual values of $1,921 thousand and $1,117 thousand as of March 31, 2018 and 2017, respectively. | |||||
[2] | Includes estimated unguaranteed residual values of $6,004 thousand for direct financing leases, which have been accounted for as sales under Codification Topic Transfers and Servicing. | |||||
[3] | 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. | |||||
[4] | Initial direct costs are shown net of amortization of $341 thousand. | |||||
[5] | Initial direct costs are shown net of amortization of $510 thousand. | |||||
[6] | For details on reserve for credit losses, refer to Note 5, "Reserves for Credit Losses." |
GOODWILL AND OTHER INTANGIBLE44
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | $ 57,070 | $ 50,824 | |
Goodwill, Accumulated Impairment Loss, Beginning Balance | (8,673) | (8,673) | |
Goodwill, Net Carrying Amount, Beginning Balance | 48,397 | 42,151 | |
Acquisitions | 27,996 | 6,507 | |
Foreign currency translations | 231 | (261) | |
Goodwill, Ending Balance | 85,297 | 57,070 | $ 50,824 |
Goodwill, Accumulated Impairment Loss, Ending Balance | (8,673) | (8,673) | (8,673) |
Goodwill, Net Carrying Amount, Ending Balance | $ 76,624 | 48,397 | 42,151 |
Percentage change in the fair value | 10.00% | ||
Finite-Lived Intangible Assets [Line Items] | |||
Intangibles Assets, Gross Carrying Amount | $ 47,503 | 27,022 | |
Intangibles Assets, Accumulated Amortization / Impairment Loss | (21,201) | (14,863) | |
Intangible Assets, Net Carrying Amount | 26,302 | 12,159 | |
Total amortization expense | 6,400 | 4,400 | $ 3,300 |
Future amortization expense for years ended March 31 [Abstract] | |||
2,019 | 7,100 | ||
2,020 | 6,000 | ||
2,021 | 4,800 | ||
2,022 | 3,700 | ||
2,023 | 2,600 | ||
Customer Relationships & Other Intangibles [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangibles Assets, Gross Carrying Amount | 41,895 | 23,373 | |
Intangibles Assets, Accumulated Amortization / Impairment Loss | (18,634) | (12,553) | |
Intangible Assets, Net Carrying Amount | $ 23,261 | 10,820 | |
Customer Relationships & Other Intangibles [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 5 years | ||
Customer Relationships & Other Intangibles [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 10 years | ||
Capitalized Software Development [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangibles Assets, Gross Carrying Amount | $ 5,608 | 3,649 | |
Intangibles Assets, Accumulated Amortization / Impairment Loss | (2,567) | (2,310) | |
Intangible Assets, Net Carrying Amount | $ 3,041 | $ 1,339 | |
Estimated useful life | 5 years |
RESERVES FOR CREDIT LOSSES (Det
RESERVES FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |||
Activity in reserves for credit losses [Roll Forward] | ||||||
Balance | $ 5,392 | $ 5,193 | ||||
Provision for credit losses | 462 | 277 | ||||
Write-offs and other | (3,190) | (78) | ||||
Balance | 2,664 | 5,392 | ||||
Reserve for credit losses [Abstract] | ||||||
Ending balance | 5,392 | 5,392 | $ 2,664 | $ 5,392 | ||
Minimum payments [Abstract] | ||||||
Ending balance: individually evaluated for impairment | 3,200 | |||||
Accounts Receivable [Member] | ||||||
Activity in reserves for credit losses [Roll Forward] | ||||||
Balance | 1,279 | 1,127 | ||||
Provision for credit losses | 264 | 216 | ||||
Write-offs and other | (5) | (64) | ||||
Balance | 1,538 | 1,279 | ||||
Reserve for credit losses [Abstract] | ||||||
Ending balance | 1,279 | 1,279 | 1,538 | 1,279 | ||
Notes Receivable [Member] | ||||||
Activity in reserves for credit losses [Roll Forward] | ||||||
Balance | 3,434 | [1] | 3,381 | |||
Provision for credit losses | 73 | 65 | ||||
Write-offs and other | (3,021) | (12) | ||||
Balance | [1] | 486 | 3,434 | |||
Reserve for credit losses [Abstract] | ||||||
Ending balance: collectively evaluated for impairment | 424 | 348 | ||||
Ending balance: individually evaluated for impairment | 62 | 3,086 | ||||
Ending balance | [1] | 486 | 3,434 | 486 | 3,434 | |
Minimum payments [Abstract] | ||||||
Ending balance: collectively evaluated for impairment | 62,930 | 45,438 | ||||
Ending balance: individually evaluated for impairment | 62 | 3,086 | ||||
Ending balance | 62,992 | 48,524 | ||||
Lease-Related Receivables [Member] | ||||||
Activity in reserves for credit losses [Roll Forward] | ||||||
Balance | 679 | [1] | 685 | |||
Provision for credit losses | 125 | (4) | ||||
Write-offs and other | (164) | (2) | ||||
Balance | [1] | 640 | 679 | |||
Reserve for credit losses [Abstract] | ||||||
Ending balance: collectively evaluated for impairment | 640 | 556 | ||||
Ending balance: individually evaluated for impairment | 0 | 123 | ||||
Ending balance | [1] | $ 679 | $ 679 | 640 | 679 | |
Minimum payments [Abstract] | ||||||
Ending balance: collectively evaluated for impairment | 65,943 | 57,730 | ||||
Ending balance: individually evaluated for impairment | 0 | 142 | ||||
Ending balance | $ 65,943 | $ 57,872 | ||||
[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, 2018 | Mar. 31, 2017 |
Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | $ 483 | $ 1,221 |
Current | 395 | 497 |
Unbilled minimum lease payments | 65,065 | 56,154 |
Total minimum lease payments | 65,943 | 57,872 |
Unearned income | (6,492) | (3,937) |
Non-recourse notes payable | (33,219) | (26,277) |
Net credit exposure | 26,232 | 27,658 |
Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 1,660 | 4,720 |
Current | 3,656 | 1,720 |
Unbilled minimum lease payments | 57,676 | 42,084 |
Total minimum lease payments | 62,992 | 48,524 |
Non-recourse notes payable | (40,769) | (25,735) |
Net credit exposure | $ 22,223 | 22,789 |
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 | $ 226 | 833 |
Current | 224 | 406 |
Unbilled minimum lease payments | 33,779 | 32,532 |
Total minimum lease payments | 34,229 | 33,771 |
Unearned income | (3,743) | (2,362) |
Non-recourse notes payable | (17,207) | (12,924) |
Net credit exposure | 13,279 | 18,485 |
High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 1,125 | 1,601 |
Current | 3,262 | 1,165 |
Unbilled minimum lease payments | 40,896 | 23,359 |
Total minimum lease payments | 45,283 | 26,125 |
Non-recourse notes payable | (30,345) | (12,003) |
Net credit exposure | $ 14,938 | 14,122 |
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 | $ 257 | 246 |
Current | 171 | 91 |
Unbilled minimum lease payments | 31,286 | 23,622 |
Total minimum lease payments | 31,714 | 23,959 |
Unearned income | (2,749) | (1,556) |
Non-recourse notes payable | (16,012) | (13,353) |
Net credit exposure | 12,953 | 9,050 |
Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 473 | 33 |
Current | 394 | 555 |
Unbilled minimum lease payments | 16,780 | 18,725 |
Total minimum lease payments | 17,647 | 19,313 |
Non-recourse notes payable | (10,424) | (13,732) |
Net credit exposure | $ 7,223 | 5,581 |
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 | $ 0 | 142 |
Current | 0 | 0 |
Unbilled minimum lease payments | 0 | 0 |
Total minimum lease payments | 0 | 142 |
Unearned income | 0 | (19) |
Non-recourse notes payable | 0 | 0 |
Net credit exposure | 0 | 123 |
Low CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 62 | 3,086 |
Current | 0 | 0 |
Unbilled minimum lease payments | 0 | 0 |
Total minimum lease payments | 62 | 3,086 |
Non-recourse notes payable | 0 | 0 |
Net credit exposure | 62 | 3,086 |
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 | 252 | 492 |
31 to 60 Days Past Due [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 217 | 211 |
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 | 143 | 379 |
31 to 60 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 175 | 183 |
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 | 109 | 113 |
31 to 60 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 42 | 28 |
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 | 71 | 244 |
61 to 90 Days Past Due [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 936 | 668 |
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 | 40 | 224 |
61 to 90 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 527 | 663 |
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 | 31 | 20 |
61 to 90 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 409 | 5 |
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 | 160 | 485 |
Greater than 90 Days Past Due [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 507 | 3,841 |
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 | 43 | 230 |
Greater than 90 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 423 | 755 |
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 | 117 | 113 |
Greater than 90 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 22 | 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 | 0 | 142 |
Greater than 90 Days Past Due [Member] | Low CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | $ 62 | $ 3,086 |
PROPERTY, EQUIPMENT, AND OTHE47
PROPERTY, EQUIPMENT, AND OTHER ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Total assets | $ 30,527 | $ 26,497 | |
Accumulated depreciation and amortization | (23,017) | (19,807) | |
Property and equipment - net | 7,510 | 6,690 | |
Depreciation expense on property and equipment | 4,100 | 3,000 | $ 2,300 |
Other current assets [Abstract] | |||
Deposits & funds held in escrow | 16,202 | 39,161 | |
Prepaid assets | 7,031 | 3,388 | |
Other | 392 | 815 | |
Total other current assets | 23,625 | 43,364 | |
Property, equipment and other assets [Abstract] | |||
Property and equipment, net | 7,510 | 6,690 | |
Deferred costs - non-current | 9,302 | 3,536 | |
Other | 2,331 | 1,730 | |
Total property, equipment and other assets | 19,143 | 11,956 | |
Other current liabilities [Abstract] | |||
Accrued expenses | 8,339 | 7,450 | |
Accrued income taxes payable | 175 | 1,761 | |
Contingent consideration - current | 5,806 | 554 | |
Other | 19,050 | 9,414 | |
Total other current liabilities | 33,370 | 19,179 | |
Other liabilities [Abstract] | |||
Deferred revenue - non-current | 12,910 | 4,704 | |
Contingent consideration - long-term | 7,707 | 0 | |
Other | 450 | 2,376 | |
Total other liabilities | 21,067 | 7,080 | |
Increase in deferred costs | 5,800 | ||
Increase in deferred revenues | 8,200 | ||
Increase in other current liabilities | 10,100 | ||
Furniture, Fixtures and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total assets | 20,167 | 17,132 | |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total assets | 336 | 343 | |
Capitalized Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total assets | 4,772 | 4,342 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total assets | $ 5,252 | $ 4,680 |
NOTES PAYABLE AND CREDIT FACI48
NOTES PAYABLE AND CREDIT FACILITY (Details) $ in Thousands | Jul. 27, 2017USD ($)Component | Mar. 31, 2018USD ($)Component | Oct. 31, 2017USD ($) | Mar. 31, 2017USD ($) |
Recourse Notes Payable [Abstract] | ||||
Current | $ 1,343 | $ 908 | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||||
Current | 40,863 | 26,085 | ||
Long-term | 10,072 | 10,431 | ||
Guarantor obligations for credit facility, maximum | 400 | |||
Recourse Note Payable [Member] | ||||
Recourse Notes Payable [Abstract] | ||||
Current | 1,343 | 908 | ||
Total recourse notes payable | $ 1,343 | $ 908 | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||||
Interest rate of notes | 4.11% | |||
Weighted average interest rate of notes | 4.11% | 3.45% | ||
Debt Maturity [Abstract] | ||||
Year ending March 31, 2019 | $ 1,343 | |||
2,020 | 0 | |||
2,021 | 0 | |||
2,022 | 0 | |||
2023 and thereafter | 0 | |||
Total | 1,343 | |||
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% | |||
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% | |||
Non-Recourse Note Payable [Member] | ||||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||||
Current | 40,863 | $ 26,085 | ||
Long-term | 10,072 | 10,431 | ||
Total non-recourse notes payable | $ 50,935 | $ 36,516 | ||
Weighted average interest rate of notes | 4.04% | 3.73% | ||
Debt Maturity [Abstract] | ||||
Year ending March 31, 2019 | $ 40,863 | |||
2,020 | 8,008 | |||
2,021 | 2,016 | |||
2,022 | 48 | |||
2023 and thereafter | 0 | |||
Total | $ 50,935 | |||
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 | 2.04% | 2.00% | ||
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 | 8.45% | 7.75% | ||
WFCDF [Member] | ||||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||||
Number of components under credit facility | Component | 2 | 2 | ||
Maximum amount can be borrowed under credit facility | $ 250,000 | $ 250,000 | $ 325,000 | |
Maturity date of credit facility | Oct. 31, 2017 | |||
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] | Floor Plan Component [Member] | ||||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||||
Amount outstanding under credit facility | 112,100 | $ 132,600 | ||
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] | Account Receivable Component [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% |
COMMITMENTS AND CONTINGENCIES49
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | ||
COMMITMENTS AND CONTINGENCIES [Abstract] | ||||
Rent expense | $ 6,700 | $ 5,600 | $ 4,900 | |
Future Minimum Lease Payments [Abstract] | ||||
Year ending March 31, 2019 | 6,356 | |||
2,020 | 3,847 | |||
2,021 | 2,681 | |||
2,022 | 1,837 | |||
2023 and thereafter | 1,201 | |||
Operating lease obligations | [1] | $ 15,922 | ||
Employment Contracts and Severance Plans [Abstract] | ||||
Claim settlement received | $ 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, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Mar. 31, 2018 | [1] | Dec. 31, 2017 | [1] | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Calculation of earnings per common share - diluted [Abstract] | |||||||||||||||||||
Net earnings attributable to common shareholders- basic | $ 55,122 | $ 50,556 | $ 44,747 | ||||||||||||||||
Basic and diluted common shares outstanding [Abstract] | |||||||||||||||||||
Weighted average common shares outstanding - basic (in shares) | 13,790 | 13,867 | 14,513 | ||||||||||||||||
Effect of dilutive shares (in shares) | 177 | 161 | 175 | ||||||||||||||||
Weighted average shares common outstanding - diluted (in shares) | 13,967 | 14,028 | 14,688 | ||||||||||||||||
Earnings per common share - basic (in dollars per share) | $ 0.65 | $ 1.12 | $ 1.24 | $ 0.97 | $ 0.76 | $ 0.92 | $ 1.21 | $ 0.76 | $ 4 | $ 3.65 | $ 3.08 | ||||||||
Earnings per common share - diluted (in dollars per share) | $ 0.65 | $ 1.11 | $ 1.23 | $ 0.96 | $ 0.75 | $ 0.91 | $ 1.21 | $ 0.75 | $ 3.95 | $ 3.60 | $ 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. |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) $ / shares in Units, $ in Thousands | Jan. 27, 2017 | Mar. 31, 2018USD ($)$ / sharesshares | Mar. 31, 2017USD ($)$ / sharesshares | Apr. 26, 2018shares | Aug. 15, 2017shares |
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) | 500,000 | ||||
Common stock repurchased during the period (in shares) | 409,839 | 656,962 | |||
Average cost of share repurchased (in dollars per share) | $ / shares | $ 77.18 | $ 40.81 | |||
Common stock repurchased during the period | $ | $ 31,600 | $ 26,800 | |||
Shares repurchased to satisfy tax withholding obligation (in shares) | 57,725 | 59,472 | |||
Value of shares repurchased to satisfy tax withholding obligation | $ | $ 4,400 | $ 2,600 | |||
Subsequent Event [Member] | |||||
Share Repurchase Plan [Abstract] | |||||
Authorized number of shares under stock repurchase program (in shares) | 500,000 | ||||
Treasury Stock [Member] | |||||
Stock Split and Treasury Stock [Abstract] | |||||
Treasury stock, retired (in shares) | 6,200,000 | ||||
Treasury stock, retired value | $ | $ 158,948 |
SHARE-BASED COMPENSATION, Direc
SHARE-BASED COMPENSATION, Director and Employee LTIP (Details) | 12 Months Ended |
Mar. 31, 2018shares | |
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] | Tranche One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares vesting period | 1 year |
Shares vesting percentage | 50.00% |
2008 Director LTIP [Member] | Tranche Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares vesting period | 2 years |
Shares vesting percentage | 50.00% |
2012 Employee LTIP [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized (in shares) | 1,500,000 |
2017 Director LTIP [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized (in shares) | 150,000 |
2017 Director LTIP [Member] | Tranche One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares vesting period | 1 year |
Shares vesting percentage | 50.00% |
2017 Director LTIP [Member] | Tranche Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares vesting period | 2 years |
Shares vesting percentage | 50.00% |
SHARE-BASED COMPENSATION, Stock
SHARE-BASED COMPENSATION, Stock Option and Restricted Stock Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 7 Months Ended | 12 Months Ended | 67 Months Ended | 115 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2018 | Mar. 31, 2018 | |
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 | 0 | 0 | 0 |
Additional Disclosures [Abstract] | ||||||
Vested share-based awards withheld to satisfy income tax obligations (in shares) | 57,725 | 59,472 | ||||
Vested share-based awards withheld to satisfy income tax obligations | $ 4.4 | $ 2.6 | ||||
Restricted Stock [Member] | ||||||
Number of Shares [Roll Forward] | ||||||
Nonvested at beginning of period (in shares) | 371,689 | |||||
Granted (in shares) | 72,623 | |||||
Vested (in shares) | (156,607) | |||||
Forfeited (in shares) | (5,470) | |||||
Nonvested at end of period (in shares) | 282,235 | 282,235 | 371,689 | 282,235 | 282,235 | |
Weighted Average Grant-date Fair Value [Roll Forward] | ||||||
Nonvested at beginning of period (in dollars per share) | $ 40.45 | |||||
Granted (in dollars per share) | 80.24 | $ 43.15 | $ 40.89 | |||
Vested (in dollars per share) | 38.55 | |||||
Forfeited (in dollars per share) | 43.15 | |||||
Nonvested at end of period (in dollars per share) | $ 51.69 | $ 51.69 | $ 40.45 | $ 51.69 | $ 51.69 | |
Aggregated fair value of restricted shares | $ 6 | $ 6 | $ 4.7 | |||
Additional Disclosures [Abstract] | ||||||
Vested share-based awards withheld to satisfy income tax obligations (in shares) | 57,725 | 59,472 | ||||
Vested share-based awards withheld to satisfy income tax obligations | $ 4.4 | $ 2.6 | ||||
2008 Director LTIP [Member] | Restricted Stock [Member] | ||||||
Number of Shares [Roll Forward] | ||||||
Granted (in shares) | 535 | 258,143 | ||||
2012 Employee LTIP [Member] | Restricted Stock [Member] | ||||||
Number of Shares [Roll Forward] | ||||||
Granted (in shares) | 66,530 | 749,576 | ||||
2017 Director LTIP [Member] | Restricted Stock [Member] | ||||||
Number of Shares [Roll Forward] | ||||||
Granted (in shares) | 5,558 | 5,558 |
SHARE-BASED COMPENSATION, Compe
SHARE-BASED COMPENSATION, Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Compensation Expense [Abstract] | |||
Total share-based compensation expense | $ 6,464 | $ 6,025 | $ 5,711 |
Recognized tax benefit | 1,600 | 500 | |
401 (k) Profit Sharing Plan [Abstract] | |||
Contribution to profit sharing plan | 2,100 | $ 1,900 | $ 1,400 |
Restricted Stock [Member] | |||
Compensation Expense [Abstract] | |||
Unrecognized compensation expense | $ 9,400 | ||
Unrecognized compensation expense, period for recognition | 27 months |
INCOME TAXES, Reconciliation of
INCOME TAXES, Reconciliation of Income taxes Computed at the Statutory Federal Income Tax Rate to Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Reconciliation of income taxes to the statutory rate [Abstract] | |||||||||||
Statutory federal income tax rate | 21.00% | 31.50% | 35.00% | 35.00% | |||||||
Income tax expense computed at the U.S. statutory federal rate | $ 26,505 | $ 30,134 | $ 26,513 | ||||||||
Effect of federal reduction of statutory rate | (1,654) | ||||||||||
State income tax expense - net of federal benefit | 3,842 | 4,193 | 3,544 | ||||||||
Non-deductible executive compensation | 658 | 512 | 331 | ||||||||
Other | (582) | 717 | 616 | ||||||||
Provision for income taxes | $ 9,270 | $ 678 | $ 11,466 | $ 7,355 | $ 8,246 | $ 8,687 | $ 11,808 | $ 6,815 | $ 28,769 | $ 35,556 | $ 31,004 |
Effective income tax rate | 34.30% | 41.30% | 40.90% |
INCOME TAXES, Components of the
INCOME TAXES, Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Current [Abstract] | |||||||||||
Federal | $ 23,196 | $ 29,619 | $ 21,361 | ||||||||
State | 5,377 | 7,001 | 6,114 | ||||||||
Foreign | 240 | 132 | 13 | ||||||||
Total current expense | 28,813 | 36,752 | 27,488 | ||||||||
Deferred [Abstract] | |||||||||||
Federal | (611) | (622) | 3,727 | ||||||||
State | 154 | (432) | (211) | ||||||||
Foreign | 413 | (142) | 0 | ||||||||
Total deferred expense (benefit) | (44) | (1,196) | 3,516 | ||||||||
Provision for income taxes | $ 9,270 | $ 678 | $ 11,466 | $ 7,355 | $ 8,246 | $ 8,687 | $ 11,808 | $ 6,815 | $ 28,769 | $ 35,556 | $ 31,004 |
INCOME TAXES, Deferred Tax Asse
INCOME TAXES, Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Deferred Tax Assets [Abstract] | ||
Accrued vacation | $ 1,596 | $ 2,217 |
Deferred revenue | 668 | 3,107 |
Foreign net operating loss carryforward | 0 | 462 |
Reserve for credit losses | 607 | 2,026 |
Restricted stock | 1,270 | 1,779 |
Other accruals and reserves | 1,497 | 2,555 |
Other credits and carryforwards | 1,335 | 1,166 |
Gross deferred tax assets | 6,973 | 13,312 |
Less: valuation allowance | (1,335) | (1,270) |
Net deferred tax assets | 5,638 | 12,042 |
Deferred Tax Liabilities [Abstract] | ||
Basis difference in fixed assets | (1,570) | (1,399) |
Basis difference in operating leases | (4,517) | (9,926) |
Basis difference in tax deductible goodwill | (1,213) | (2,516) |
Total deferred tax liabilities | (7,300) | (13,841) |
Net deferred tax liabilities | $ (1,662) | $ (1,799) |
INCOME TAXES, Effective Tax Rat
INCOME TAXES, Effective Tax Rate, Capital and Operating Loss Carryforwards (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
State [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Capital loss carryforwards | $ 1.3 | |
Capital loss carryforwards expiration term | 5 years | |
Foreign [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 0.5 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Assets [Abstract] | ||
Money market funds | $ 60,385 | $ 50,866 |
Liabilities [Abstract] | ||
Contingent consideration | 13,513 | 554 |
Initial contingent consideration due to business acquisitions | 12,000 | |
Adjustment to fair value of contingent consideration | 1,500 | 200 |
Payments of contingent consideration | 600 | 700 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Money market funds | 60,385 | 50,866 |
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 | $ 13,513 | $ 554 |
BUSINESS COMBINATIONS, Integrat
BUSINESS COMBINATIONS, Integrated Data Storage, LLC Acquisition (Details) - USD ($) $ in Thousands | Sep. 15, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Business Acquisition [Line Items] | ||||
Fair value of contingent consideration | $ 7,707 | $ 0 | ||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Goodwill | $ 76,624 | $ 48,397 | $ 42,151 | |
Integrated Data Storage LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash portion of the acquisition | $ 29,800 | |||
Receivables as a working capital adjustment | 1,400 | |||
Fair value of contingent consideration | 10,000 | |||
Fair value of contingent consideration, maximum | 15,000 | |||
Contingent consideration payout period | 3 years | |||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Accounts receivable and other current assets | 14,353 | |||
Property and equipment | 1,620 | |||
Identified intangible assets | 13,650 | |||
Accounts payable and other current liabilities | (12,313) | |||
Total identifiable net assets | 17,310 | |||
Goodwill | 21,088 | |||
Total purchase consideration | $ 38,398 | |||
Integrated Data Storage LLC [Member] | Customer Relationships [Member] | ||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Estimated useful lives | 8 years |
BUSINESS COMBINATIONS, OneCloud
BUSINESS COMBINATIONS, OneCloud Consulting Inc. Acquisition (Details) - USD ($) $ in Thousands | May 17, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Business Acquisition [Line Items] | ||||
Fair value of contingent consideration | $ 7,707 | $ 0 | ||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Goodwill | $ 76,624 | $ 48,397 | $ 42,151 | |
OneCloud Consulting, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of stock acquired | 100.00% | |||
Cash portion of the acquisition | $ 7,900 | |||
Fair value of contingent consideration | 2,100 | |||
Fair value of contingent consideration, maximum | 4,500 | |||
Contingent consideration payout period | 3 years | |||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Accounts receivable and other assets | 488 | |||
Identified intangible assets | 4,130 | |||
Accounts payable and other current liabilities | (1,822) | |||
Total identifiable net assets | 2,796 | |||
Goodwill | 7,189 | |||
Total purchase consideration | 9,985 | |||
OneCloud Consulting, Inc [Member] | Customer Relationships [Member] | ||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Total identifiable net assets | 1,700 | |||
Estimated useful lives | 8 years | |||
OneCloud Consulting, Inc [Member] | Internally Developed Processes [Member] | ||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Total identifiable net assets | $ 2,400 | |||
Estimated useful lives | 5 years |
BUSINESS COMBINATIONS, Consolid
BUSINESS COMBINATIONS, Consolidated IT Services Acquisition (Details) - USD ($) $ in Thousands | Dec. 06, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Goodwill | $ 76,624 | $ 48,397 | $ 42,151 | |
Consolidated IT Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash portion of the acquisition | $ 9,500 | |||
Cash portion of the acquisition payable in future | 4,000 | |||
Contingent consideration payout period | 2 years | |||
Receivables as a working capital adjustment | 400 | |||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Accounts receivable and other current assets | 7,491 | |||
Property and equipment | 1,045 | |||
Identified intangible assets | 4,090 | |||
Accounts payable and other current liabilities | (5,786) | |||
Total identifiable net assets | 6,840 | |||
Goodwill | 6,227 | |||
Total purchase consideration | 13,067 | |||
Consolidated IT Services [Member] | Technology [Member] | ||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Goodwill | 6,500 | |||
Consolidated IT Services [Member] | Customer Relationships [Member] | ||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Total identifiable net assets | $ 3,800 | |||
Estimated useful lives | 7 years |
BUSINESS COMBINATIONS, IGX Acqu
BUSINESS COMBINATIONS, IGX Acquisition (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 04, 2015 |
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Goodwill | $ 76,624 | $ 48,397 | $ 42,151 | |
IGX Acquisition [Member] | ||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Accounts receivable-trade, net | $ 8,457 | |||
Property and equipment | 81 | |||
Identified intangible assets | 8,710 | |||
Accounts payable and other current liabilities | (8,641) | |||
Deferred tax liability | (89) | |||
Total identifiable net assets | 8,518 | |||
Goodwill | 8,131 | |||
Total purchase consideration | 16,649 | |||
Goodwill expected to be deductible for tax purpose | $ 5,800 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2018USD ($)Segment | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
SEGMENT REPORTING [Abstract] | |||||||||||
Number of business segment | Segment | 2 | ||||||||||
Statement of Operations [Abstract] | |||||||||||
Sales of product and services | $ 1,364,145 | $ 1,290,228 | $ 1,163,337 | ||||||||
Financing revenue | 40,671 | 34,200 | 35,091 | ||||||||
Fee and other income | 6,181 | 4,961 | 5,771 | ||||||||
Net sales | $ 330,426 | $ 342,569 | $ 370,845 | $ 367,157 | $ 332,767 | $ 326,657 | $ 371,462 | $ 298,503 | 1,410,997 | 1,329,389 | 1,204,199 |
Cost of sales, product and services | 1,082,245 | 1,025,188 | 931,782 | ||||||||
Direct lease costs | 5,270 | 4,442 | 10,360 | ||||||||
Cost of sales | 248,796 | 265,881 | 283,274 | 289,564 | 256,391 | 252,871 | 289,529 | 230,839 | 1,087,515 | 1,029,630 | 942,142 |
Selling, general, and administrative expenses | 59,989 | 57,134 | 56,340 | 54,664 | 55,411 | 50,160 | 51,607 | 48,054 | 228,127 | 205,232 | 178,980 |
Depreciation and amortization | 2,835 | 2,894 | 2,129 | 2,063 | 1,844 | 1,910 | 1,723 | 1,775 | 9,921 | 7,252 | 5,548 |
Interest and financing costs | 292 | 270 | 274 | 359 | 385 | 409 | 400 | 349 | 1,195 | 1,543 | 1,778 |
Operating expenses | 63,116 | 60,298 | 58,743 | 57,086 | 57,640 | 52,479 | 53,730 | 50,178 | 239,243 | 214,027 | 186,306 |
Operating income | 18,514 | 16,390 | 28,828 | 20,507 | 18,736 | 21,307 | 28,203 | 17,486 | 84,239 | 85,732 | 75,751 |
Other income and (expense) | (347) | (131) | (141) | 271 | 0 | 0 | 380 | 0 | (348) | 380 | 0 |
Earnings before tax | 18,167 | $ 16,259 | $ 28,687 | $ 20,778 | 18,736 | $ 21,307 | $ 28,583 | $ 17,486 | 83,891 | 86,112 | 75,751 |
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||||||||
Depreciation and amortization | 15,827 | 11,731 | 15,980 | ||||||||
Purchases of property, equipment and operating lease equipment | 7,590 | 9,558 | 14,468 | ||||||||
Selected Financial Data - Balance Sheet [Abstract] | |||||||||||
Total assets | 758,704 | 741,720 | 758,704 | 741,720 | 616,680 | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,410,997 | 1,329,389 | 1,204,199 | ||||||||
Long-lived tangible assets | 24,939 | 33,328 | 24,939 | 33,328 | |||||||
U.S. [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,341,449 | 1,293,705 | 1,186,904 | ||||||||
Long-lived tangible assets | 24,445 | 31,450 | 24,445 | 31,450 | |||||||
Non U.S [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 69,548 | 35,684 | 17,295 | ||||||||
Long-lived tangible assets | 494 | 1,878 | 494 | 1,878 | |||||||
Operating Segments [Member] | Technology [Member] | |||||||||||
Statement of Operations [Abstract] | |||||||||||
Sales of product and services | 1,364,145 | 1,290,228 | 1,163,337 | ||||||||
Financing revenue | 0 | 0 | 0 | ||||||||
Fee and other income | 5,387 | 4,709 | 5,728 | ||||||||
Net sales | 1,369,532 | 1,294,937 | 1,169,065 | ||||||||
Cost of sales, product and services | 1,082,245 | 1,025,188 | 931,782 | ||||||||
Direct lease costs | 0 | 0 | 0 | ||||||||
Cost of sales | 1,082,245 | 1,025,188 | 931,782 | ||||||||
Selling, general, and administrative expenses | 214,980 | 193,594 | 167,992 | ||||||||
Depreciation and amortization | 9,918 | 7,243 | 5,532 | ||||||||
Interest and financing costs | 0 | 0 | 70 | ||||||||
Operating expenses | 224,898 | 200,837 | 173,594 | ||||||||
Operating income | 62,389 | 68,912 | 63,689 | ||||||||
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||||||||
Depreciation and amortization | 10,461 | 7,365 | 5,641 | ||||||||
Purchases of property, equipment and operating lease equipment | 5,353 | 3,356 | 2,442 | ||||||||
Selected Financial Data - Balance Sheet [Abstract] | |||||||||||
Total assets | 541,009 | 533,560 | 541,009 | 533,560 | 427,580 | ||||||
Operating Segments [Member] | Financing [Member] | |||||||||||
Statement of Operations [Abstract] | |||||||||||
Sales of product and services | 0 | 0 | 0 | ||||||||
Financing revenue | 40,671 | 34,200 | 35,091 | ||||||||
Fee and other income | 794 | 252 | 43 | ||||||||
Net sales | 41,465 | 34,452 | 35,134 | ||||||||
Cost of sales, product and services | 0 | 0 | 0 | ||||||||
Direct lease costs | 5,270 | 4,442 | 10,360 | ||||||||
Cost of sales | 5,270 | 4,442 | 10,360 | ||||||||
Selling, general, and administrative expenses | 13,147 | 11,638 | 10,988 | ||||||||
Depreciation and amortization | 3 | 9 | 16 | ||||||||
Interest and financing costs | 1,195 | 1,543 | 1,708 | ||||||||
Operating expenses | 14,345 | 13,190 | 12,712 | ||||||||
Operating income | 21,850 | 16,820 | 12,062 | ||||||||
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||||||||
Depreciation and amortization | 5,366 | 4,366 | 10,339 | ||||||||
Purchases of property, equipment and operating lease equipment | 2,237 | 6,202 | 12,026 | ||||||||
Selected Financial Data - Balance Sheet [Abstract] | |||||||||||
Total assets | $ 217,695 | $ 208,160 | $ 217,695 | $ 208,160 | $ 189,100 | ||||||
Revenue [Member] | Technology [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percentage of concentration risk | 12.00% | 13.00% |
QUARTERLY DATA -UNAUDITED (Deta
QUARTERLY DATA -UNAUDITED (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | [1] | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | ||||||||
QUARTERLY DATA -UNAUDITED [Abstract] | ||||||||||||||||||||
Net sales | $ 330,426 | $ 342,569 | $ 370,845 | $ 367,157 | $ 332,767 | $ 326,657 | $ 371,462 | $ 298,503 | $ 1,410,997 | $ 1,329,389 | $ 1,204,199 | |||||||||
Cost of sales | 248,796 | 265,881 | 283,274 | 289,564 | 256,391 | 252,871 | 289,529 | 230,839 | 1,087,515 | 1,029,630 | 942,142 | |||||||||
Gross profit | 81,630 | 76,688 | 87,571 | 77,593 | 76,376 | 73,786 | 81,933 | 67,664 | 323,482 | 299,759 | 262,057 | |||||||||
Selling, general, and administrative expenses | 59,989 | 57,134 | 56,340 | 54,664 | 55,411 | 50,160 | 51,607 | 48,054 | 228,127 | 205,232 | 178,980 | |||||||||
Depreciation and amortization | 2,835 | 2,894 | 2,129 | 2,063 | 1,844 | 1,910 | 1,723 | 1,775 | 9,921 | 7,252 | 5,548 | |||||||||
Interest and financing costs | 292 | 270 | 274 | 359 | 385 | 409 | 400 | 349 | 1,195 | 1,543 | 1,778 | |||||||||
Operating expenses | 63,116 | 60,298 | 58,743 | 57,086 | 57,640 | 52,479 | 53,730 | 50,178 | 239,243 | 214,027 | 186,306 | |||||||||
Operating income | 18,514 | 16,390 | 28,828 | 20,507 | 18,736 | 21,307 | 28,203 | 17,486 | 84,239 | 85,732 | 75,751 | |||||||||
Other income and (expense) | (347) | (131) | (141) | 271 | 0 | 0 | 380 | 0 | (348) | 380 | 0 | |||||||||
Earnings before tax | 18,167 | 16,259 | 28,687 | 20,778 | 18,736 | 21,307 | 28,583 | 17,486 | 83,891 | 86,112 | 75,751 | |||||||||
Provision for income taxes | 9,270 | 678 | 11,466 | 7,355 | 8,246 | 8,687 | 11,808 | 6,815 | 28,769 | 35,556 | 31,004 | |||||||||
Net earnings | $ 8,897 | $ 15,581 | $ 17,221 | $ 13,423 | $ 10,490 | $ 12,620 | $ 16,775 | $ 10,671 | $ 55,122 | $ 50,556 | $ 44,747 | |||||||||
Net earnings per common share - Basic (in dollars per share) | $ 0.65 | [1] | $ 1.12 | [1] | $ 1.24 | [1] | $ 0.97 | [1] | $ 0.76 | [1] | $ 0.92 | [1] | $ 1.21 | [1] | $ 0.76 | $ 4 | $ 3.65 | $ 3.08 | ||
Net earnings per common share - Diluted (in dollars per share) | $ 0.65 | [1] | $ 1.11 | [1] | $ 1.23 | [1] | $ 0.96 | [1] | $ 0.75 | [1] | $ 0.91 | [1] | $ 1.21 | [1] | $ 0.75 | $ 3.95 | $ 3.60 | $ 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 Q66
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2018 | 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] | $ 752 | 653 | 613 | |
Charged to Costs and Expenses | [1] | 2,579 | 1,530 | 1,500 | |
Deductions/Write-Offs | [1] | (2,432) | (1,431) | (1,460) | |
Balance at End of Period | [1] | 899 | 752 | 653 | 613 |
Reserve for Credit Losses [Member] | |||||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||||
Balance at Beginning of Period | 5,392 | 5,193 | 5,623 | ||
Charged to Costs and Expenses | 462 | 277 | (242) | ||
Deductions/Write-Offs | (3,190) | (78) | (188) | ||
Balance at End of Period | 2,664 | 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 | 1,270 | 1,223 | ||
Charged to Costs and Expenses | 67 | 0 | 47 | ||
Deductions/Write-Offs | 0 | 0 | 0 | ||
Balance at End of Period | $ 1,337 | $ 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. |