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ALLOWANCE FOR CREDIT LOSSES

6 Months Ended

Sep. 30, 2020

ALLOWANCE FOR CREDIT LOSSES [Abstract]

7.	ALLOWANCE FOR CREDIT LOSSES

The following table provides the activity in our allowance for credit losses for the six months ended September 30, 2020, and 2019 (in thousands):

	Accounts Receivable			Notes Receivable			Lease Receivables			Total
Balance April 1, 2020	$	1,781		$	798		$	610		$	3,189
Provision for credit losses		576			566			624			1,766
Write-offs and other		(27	)		(27	)		(7	)		(61	)
Balance September 30, 2020	$	2,330		$	1,337		$	1,227		$	4,894

	Accounts Receivable			Notes Receivable		Lease Receivables			Total
Balance April 1, 2019	$	1,579		$	505	$	530		$	2,614
Provision for credit losses		311			15		(27	)		299
Write-offs and other		(42	)		-		(3	)		(45	)
Balance September 30, 2019	$	1,848		$	520	$	500		$	2,868

The following table provides our allowance for credit losses and minimum payments associated with our notes receivables and lease-related receivables disaggregated based on our impairment method as of March 31, 2020 (in thousands):

	March 31, 2020
	Notes Receivable		Lease Receivables
Allowance for credit losses:
Ending balance: collectively evaluated for impairment	$	736	$	610
Ending balance: individually evaluated for impairment		62		-
Ending balance	$	798	$	610

Minimum payments:
Ending balance: collectively evaluated for impairment	$	55,005	$	69,492
Ending balance: individually evaluated for impairment		412		-
Ending balance	$	55,417	$	69,492

We evaluate our customers using an internally assigned credit quality rating (“CQR”):

•	High CQR: This rating includes accounts with excellent to good business credit, asset quality and capacity to meet financial obligations. Loss rates in this category are generally less than 1%.

•	Average CQR: This rating includes accounts with average credit risk that are more susceptible to loss in the event of adverse business or economic conditions. Loss rates in this category are generally in the range of 2% to 10%.

•	Low CQR: This rating includes accounts that have marginal credit risk such that the customer’s ability to make repayment is impaired or may likely become impaired. The loss rates in this category in the normal course are generally in the range of 10% to 100%.

The following table provides the amortized cost basis of our financing receivables by CQR and by credit origination year as of September 30, 2020 (in thousands):

	Amortized cost basis by origination year ending March 31,
	2021		2020		2019		2018		2017		2016 and prior		Total		Transfers (2)			Net credit exposure

Notes receivable:

High CQR	$	64,678	$	9,744	$	2,434	$	947	$	38	$	-	$	77,841	$	(35,867	)	$	41,974
Average CQR		6,189		4,697		837		52		-		-		11,775		(3,651	)		8,124
Low CQR		-		-		324		-		-		62		386		-			386
Total	$	70,867	$	14,441	$	3,595	$	999	$	38	$	62	$	90,002	$	(39,518	)	$	50,484

Lease receivables:

High CQR	$	21,650	$	11,826	$	3,609	$	998	$	314	$	8	$	38,405	$	(9,518	)	$	28,887
Average CQR		22,447		9,415		1,921		646		106		-		34,535		(11,409	)		23,126
Low CQR		-		-		-		-		-		-		-		-			-
Total	$	44,097	$	21,241	$	5,530	$	1,644	$	420	$	8	$	72,940	$	(20,927	)	$	52,013
Total amortized cost (1)	$	114,964	$	35,682	$	9,125	$	2,643	$	458	$	70	$	162,942	$	(60,445	)	$	102,497

(1)	Unguaranteed residual values of $12,644 thousand that we retained after selling the related lease receivable and initial direct costs of notes receivable of $364 thousand are excluded from amortized cost.

(2)	Transfers consist of receivables that have been transferred to third-party financial institutions on a non-recourse basis and receivables that are in the process of being transferred to third-party financial institutions.

The following table provides an aging analysis of our financing receivables as of September 30, 2020 (in thousands):

	31-60 Days Past Due		61-90 Days Past Due		> 90 Days Past Due		Total Past Due		Current		Total Billed		Unbilled		Amortized Cost
Notes receivable	$	925	$	270	$	823	$	2,018	$	10,105	$	12,123	$	77,879	$	90,002
Lease receivables		660		2,049		1,771		4,480		1,754		6,234		66,706		72,940
Total	$	1,585	$	2,319	$	2,594	$	6,498	$	11,859	$	18,357	$	144,585	$	162,942

The following table provides an aging analysis of our lease receivables by CQR as of March 31, 2020 (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

High CQR	$	951	$	105	$	922	$	1,978	$	1,181	$	33,581	$	36,740	$	(4,766	)	$	(19,823	)	$	12,151
Average CQR		46		107		112		265		1,106		31,381		32,752		(3,646	)		(18,693	)		10,413
Low CQR		-		-		-		-		-		-		-		-			-			-
Total	$	997	$	212	$	1,034	$	2,243	$	2,287	$	64,962	$	69,492	$	(8,412	)	$	(38,516	)	$	22,564

The following table provides an aging analysis of our notes receivable by CQR as of March 31, 2020 (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

High CQR	$	1,332	$	2	$	280	$	1,614	$	2,878	$	29,057	$	33,549	$	(18,341	)	$	15,208
Average CQR		140		44		142		326		1,135		19,995		21,456		(16,636	)		4,820
Low CQR		63		-		152		215		-		197		412		-			412
Total	$	1,535	$	46	$	574	$	2,155	$	4,013	$	49,249	$	55,417	$	(34,977	)	$	20,440

Our financial assets on nonaccrual status were not significant as of September 30, 2020, and March 31, 2020.