SEGMENT REPORTING

12 Months Ended

Mar. 31, 2017

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

15. SEGMENT REPORTING

The Company’s segment information is presented in accordance with a “management approach,” which designates the internal reporting used by the chief operating decision-maker ("CODM") for deciding how to allocate resources and for assessing performance. With the appointment of a new Chief Executive Officer and President effective August 1, 2016, we reassessed the determination of our operating segments. Out of that assessment, we concluded that our new Chief Executive Officer and President had assumed the role of CODM and that our operations continue to be conducted through two operating segments, our technology segment and our financing segment. Our technology segment includes sales of information technology products, third-party software, third-party maintenance, advanced professional and managed services and our proprietary software to commercial, state and local governments, and government contractors. Our financing segment consists of the financing of IT equipment, software and related services to commercial, state and local governments, and government contractors. Our CODM uses several measures to allocate resources and assess performance. Our reported measure is earnings before taxes.

Our reportable segment information was as follows (in thousands):

	Year Ended March 31,
	2017						2016						2015
Statement of Operations	Technology		Financing		Total		Technology		Financing		Total		Technology		Financing		Total
Sales of product and services	$	1,290,228	$	-	$	1,290,228	$	1,163,337	$	-	$	1,163,337	$	1,100,884	$	-	$	1,100,884
Financing revenue		-		34,200		34,200		-		35,091		35,091		-		34,728		34,728
Fee and other income		4,709		252		4,961		5,728		43		5,771		7,565		105		7,670
Net sales		1,294,937		34,452		1,329,389		1,169,065		35,134		1,204,199		1,108,449		34,833		1,143,282
Cost of sales, product and services		1,025,188		-		1,025,188		931,782		-		931,782		887,673		-		887,673
Direct lease costs		-		4,442		4,442		-		10,360		10,360		-		11,062		11,062
Cost of sales		1,025,188		4,442		1,029,630		931,782		10,360		942,142		887,673		11,062		898,735
Selling, general, and administrative expenses		193,594		11,638		205,232		167,992		10,988		178,980		155,412		11,713		167,125
Depreciation and amortization		7,243		9		7,252		5,532		16		5,548		4,310		23		4,333
Interest and financing costs		-		1,543		1,543		70		1,708		1,778		96		2,283		2,379
Operating expenses		200,837		13,190		214,027		173,594		12,712		186,306		159,818		14,019		173,837
Operating income		68,912		16,820		85,732		63,689		12,062		75,751		60,958		9,752		70,710
Other income						380						-						7,603
Earnings before taxes					$	86,112					$	75,751					$	78,313

Selected Financial Data - Statement of Cash Flow
Depreciation and amortization	$	7,365	$	4,366	$	11,731	$	5,641	$	10,339	$	15,980	$	4,450	$	11,125	$	15,575
Purchases of property, equipment and operating lease equipment	$	3,356	$	6,202	$	9,558	$	2,442	$	12,026	$	14,468	$	3,610	$	8,306	$	11,916
Selected Financial Data - Balance Sheet
Total assets	$	533,560	$	208,160	$	741,720	$	427,580	$	189,100	$	616,680	$	368,971	$	199,304	$	568,275

The geographic information for the years ended March 31, 2017, 2016 and 2015 was as follows (in thousands):

	Year Ended March 31,
	2017		2016		2015
Net sales:
U.S.	$	1,293,705	$	1,186,904	$	1,124,371
Non U.S.		35,684		17,295		18,911
Total	$	1,329,389	$	1,204,199	$	1,143,282

	As of March 31,
	2017		2016
Long-lived tangible assets:
U.S.	$	31,449	$	22,632
Non U.S.		1,878		1,427
Total	$	33,328	$	24,059

Our long-lived tangible assets include property and equipment-net, operating leases-net, and equipment that has been returned to us at the termination of the lease.

For the year ended March 31, 2017, sales to a large technology company were approximately 13% of net sales, all of which related to our technology segment. No single customer accounted for more than 10% of net sales for the years ended March 31, 2016 and 2015.