15.	SEGMENT REPORTING

Our operations are conducted through two operating segments that are also both reportable segments. Our technology segment includes sales of IT products, third-party software, third-party maintenance, advanced professional and managed services, and our proprietary software to commercial enterprises, state and local governments, and government contractors. Our financing segment consists of the financing of IT equipment, software, and related services to commercial enterprises, state and local governments, and government contractors. We measure the performance of the segments based on operating income.

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

	Three Months Ended
	September 30, 2018						September 30, 2017
	Technology		Financing		Total		Technology		Financing		Total

Contracts with customers	$	329,682	$	1,060	$	330,742	$	352,843	$	4,916	$	357,759
Financing and other		5,086		9,215		14,301		5,835		7,769		13,604
Net sales	$	334,768	$	10,275	$	345,043	$	358,678	$	12,685	$	371,363

Cost of sales		257,813		1,730		259,543		281,829		1,963		283,792
Gross Profit		76,955		8,545		85,500		76,849		10,722		87,571

Selling, general, and administrative		55,138		2,567		57,705		53,503		2,837		56,340
Depreciation and amortization		2,740		1		2,741		2,128		1		2,129
Interest and financing costs		-		484		484		-		274		274
Operating expenses		57,878		3,052		60,930		55,631		3,112		58,743

Operating income		19,077		5,493		24,570		21,218		7,610		28,828

Other income (expense)						322						(141	)

Earnings befor tax					$	24,892					$	28,687

Selected Financial Data - Statement of Cash Flow

Depreciation and amortization	$	2,970	$	1,397	$	4,367	$	2,161	$	1,359	$	3,520
Purchases of property, equipment and operating lease equipment	$	1,796	$	3,025	$	4,821	$	955	$	610	$	1,565

Selected Financial Data - Balance Sheet

Total assets	$	565,771	$	209,425	$	775,196	$	563,646	$	170,641	$	734,287

	Six Months Ended
	September 30, 2018						September 30, 2017
	Technology		Financing		Total		Technology		Financing		Total

Contracts with customers	$	671,141	$	1,656	$	672,797	$	712,204	$	7,731	$	719,935
Financing and other		10,491		18,287		28,778		9,373		15,411		24,784
Net sales	$	681,632	$	19,943	$	701,575	$	721,577	$	23,142	$	744,719

Cost of sales		531,894		3,478		535,372		575,095		4,460		579,555
Gross Profit		149,738		16,465		166,203		146,482		18,682		165,164

Selling, general, and administrative		109,592		5,079		114,671		105,004		6,000		111,004
Depreciation and amortization		5,529		2		5,531		4,190		2		4,192
Interest and financing costs		-		960		960		-		633		633
Operating expenses		115,121		6,041		121,162		109,194		6,635		115,829

Operating income		34,617		10,424		45,041		37,288		12,047		49,335

Other income (expense)						419						130

Earnings befor tax					$	45,460					$	49,465

Selected Financial Data - Statement of Cash Flow

Depreciation and amortization	$	5,985	$	2,882	$	8,867	$	4,256	$	2,489	$	6,745
Purchases of property, equipment and operating lease equipment	$	2,976	$	3,475	$	6,451	$	2,046	$	1,390	$	3,436

Selected Financial Data - Balance Sheet

Total assets	$	565,771	$	209,425	$	775,196	$	563,646	$	170,641	$	734,287

Technology Segment Disaggregation of Revenue

We analyze net sales for our technology segment by customer end market and by vendor, as opposed to discrete product and service categories, which are summarized below (in thousands):

	Three Months Ended September 30,						Six Months Ended September 30,
	2018			2017			2018			2017
Customer end market:
Technology	$	75,417		$	91,401		$	158,234		$	180,755
Telecom, Media & Entertainment		39,412			49,508			86,280			106,913
Financial Services		47,412			52,507			92,638			90,798
SLED		61,391			66,493			129,596			143,656
Healthcare		51,081			44,372			97,531			90,857
All others		60,055			54,397			117,353			108,598
Net sales		334,768			358,678			681,632			721,577

Financing and other		(5,086	)		(5,835	)		(10,491	)		(9,373	)

Revenue from contracts with customers	$	329,682		$	352,843		$	671,141		$	712,204

	Three Months Ended September 30,						Six Months Ended September 30,
	2018			2017			2018			2017
Vendor
Cisco Systems	$	152,063		$	165,690		$	291,300		$	339,035
NetApp		9,477			10,433			25,039			25,887
HP Inc. & HPE		16,658			28,377			36,977			56,648
Dell / EMC		19,895			17,485			32,398			30,898
Arista Networks		10,673			7,153			30,471			24,527
Juniper		11,262			14,240			21,660			23,576
All others		114,740			115,300			243,787			221,006
Net sales		334,768			358,678			681,632			721,577

Financing and other		(5,086	)		(5,835	)		(10,491	)		(9,373	)

Revenue from contracts with customers	$	329,682		$	352,843		$	671,141		$	712,204

Financing Segment Disaggregation of Revenue

We analyze our revenues within our financing segment based on the nature of the arrangement, and our revenues from contracts with customers consist of proceeds from the sale of off-lease equipment.