SEGMENT REPORTING

3 Months Ended

Jun. 30, 2020

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

17. 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
	June 30, 2020						June 30, 2019
	Technology		Financing		Total		Technology		Financing		Total
Sales
Product	$	293,433	$	13,807	$	307,240	$	322,764	$	12,837	$	335,601
Service		47,791		-		47,791		45,771		-		45,771
Net sales		341,224		13,807		355,031		368,535		12,837		381,372
Cost of Sales
Product		224,543		2,091		226,634		258,054		2,009		260,063
Service		29,840		-		29,840		28,670		-		28,670
Total cost of sales		254,383		2,091		256,474		286,724		2,009		288,733
Gross Profit		86,841		11,716		98,557		81,811		10,828		92,639
Selling, general, and administrative		65,556		3,911		69,467		62,667		3,120		65,787
Depreciation and amortization		3,488		28		3,516		3,407		56		3,463
Interest and financing costs		265		312		577		-		628		628
Operating expenses		69,309		4,251		73,560		66,074		3,804		69,878
Operating income		17,532		7,465		24,997		15,737		7,024		22,761
Other income						98						(45	)
Earnings before tax					$	25,095					$	22,716
Net Sales
Contracts with customers	$	333,987	$	960	$	334,947	$	363,681	$	789	$	364,470
Financing and other		7,237		12,847		20,084		4,854		12,048		16,902
Net Sales	$	341,224	$	13,807	$	355,031	$	368,535	$	12,837	$	381,372
Selected Financial Data - Statement of Cash Flow
Depreciation and amortization	$	3,634	$	1,145	$	4,779	$	1,339	$	3,625	$	4,964
Purchases of property, equipment and operating lease equipment	$	2,048	$	229	$	2,277	$	1,249	$	269	$	1,518
Selected Financial Data - Balance Sheet
Total assets	$	834,264	$	224,598	$	1,058,862	$	658,692	$	216,121	$	874,813

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 June 30,
	2020			2019
Customer end market:
Technology	$	69,967		$	76,180
Telecom, Media & Entertainment		56,652			62,466
Financial Services		47,421			48,241
SLED		70,563			71,190
Healthcare		46,535			56,109
All others		50,086			54,349
Net sales		341,224			368,535
Less: Revenue from financing and other		(7,237	)		(4,854	)
Revenue from contracts with customers	$	333,987		$	363,681

	Three Months Ended June 30,
	2020			2019
Vendor
Cisco Systems	$	127,932		$	146,181
NetApp		15,421			13,427
HP Inc. & HPE		17,038			23,113
Dell / EMC		31,081			13,781
Arista Networks		6,820			20,950
Juniper Networks		13,579			7,054
All others		129,353			144,029
Net sales		341,224			368,535
Less: Revenue from financing and other		(7,237	)		(4,854	)
Revenue from contracts with customers	$	333,987		$	363,681

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.