FINANCING RECEIVABLES AND OPERATING LEASES (Tables)

6 Months Ended

Sep. 30, 2020

FINANCING RECEIVABLES AND OPERATING LEASES [Abstract]

Sales-type Leases

The following table provides the profit recognized for sales-type leases at their commencement date, including modifications that are recognized on a net basis, for the three and six months ended September 30, 2020, and 2019 (in thousands):

	Three months ended September 30, 2020		Three months ended September 30, 2019		Six months ended September 30, 2020		Six months ended September 30, 2019
Net sales	$	7,655	$	3,133	$	17,818	$	7,987
Cost of sales		5,402		2,702		10,729		6,652
Gross profit	$	2,253	$	431	$	7,089	$	1,335

The following table provides interest income in aggregate on our sales-type leases and lease income on our operating leases for the three and six months ended September 30, 2020, and 2019 (in thousands):

	Three months ended September 30 2020		Three months ended September 30, 2019		Six months ended September 30, 2020		Six months ended September 30, 2019
Interest income on sales-type leases	$	1,884	$	1,495	$	4,103	$	3,590
Lease income on operating leases	$	3,900	$	5,059	$	7,738	$	10,418

Notes Receivable Net and Investments in Leases

The following tables provide a disaggregation of our financing receivables – net (in thousands):

September 30, 2020	Notes Receivable			Lease Receivables			Financing Receivables
Gross receivables	$	90,002		$	76,700		$	166,702
Unguaranteed residual value (1)		-			20,213			20,213
Initial direct costs, net of amortization		364			-			364
Unearned income		-			(11,329	)		(11,329	)
Reserve for credit losses (2)		(1,337	)		(1,227	)		(2,564	)
Total, net	$	89,029		$	84,357		$	173,386
Reported as:
Current	$	52,397		$	40,369		$	92,766
Long-term		36,632			43,988			80,620
Total, net	$	89,029		$	84,357		$	173,386

(1) Includes unguaranteed residual values of $12,644 thousand that we retained after selling the related lease receivable.

(2) Refer to Note 7, “Allowance for Credit Losses” for details.

March 31, 2020	Notes Receivable			Lease Receivables			Financing Receivables
Minimum payments	$	55,417		$	69,492		$	124,909
Estimated unguaranteed residual value (1)		-			21,862			21,862
Initial direct costs, net of amortization		212			247			459
Unearned income		-			(11,612	)		(11,612	)
Reserve for credit losses (2)		(798	)		(610	)		(1,408	)
Total, net	$	54,831		$	79,379		$	134,210
Reported as:
Current	$	31,181		$	38,988		$	70,169
Long-term		23,650			40,391			64,041
Total, net	$	54,831		$	79,379		$	134,210

(1) Includes unguaranteed residual values of $14,972 thousand for sales type leases, which have been sold and accounted for as sales.

(2) Refer to Note 7, “Allowance for Credit Losses” for details.

Future Scheduled Minimum Lease Payments

The following table provides the future scheduled minimum lease payments for investments in sales-type leases as of September 30, 2020 (in thousands):

Remainder of the Year ending March 31, 2021	$	46,006
Year Ending March 31, 2022		19,376
Year Ending March 31, 2023		8,196
Year Ending March 31, 2024		2,205
Year Ending March 31, 2025 and thereafter		917
Total	$	76,700

Investment in Operating Lease Equipment - Net

Operating leases—net represents leases that do not qualify as sales-type leases. The components of the operating leases—net are as follows (in thousands):

	September 30, 2020			March 31, 2020
Cost of equipment under operating leases	$	19,578		$	21,276
Accumulated depreciation		(12,272	)		(11,159	)
Investment in operating lease equipment—net (1)	$	7,306		$	10,117

(1) Amounts include estimated unguaranteed residual values of $2.5 million and $3.1 million as of September 30, 2020, and March 31, 2020, respectively.

Future Minimum Rental Payments for Operating Leases

The following table provides the future scheduled minimum lease rental payments for operating leases as of September 30, 2020 (in thousands):

Remainder of the Year ending March 31, 2021	$	1,534
Year Ending March 31, 2022		1,927
Year Ending March 31, 2023		1,436
Year Ending March 31, 2024		477
Year Ending March 31, 2025 and thereafter		35
Total	$	5,409