SEGMENT REPORTING

9 Months Ended

Dec. 31, 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 for the three- and nine-month periods ended December 31, 2020, and 2019 are summarized in the following tables (in thousands):

	Three Months Ended
	December 31, 2020						December 31, 2019
	Technology		Financing		Total		Technology		Financing		Total
Sales
Product	$	363,478	$	12,034	$	375,512	$	360,206	$	18,363	$	378,569
Service		52,092		-		52,092		50,422		-		50,422
Net sales		415,570		12,034		427,604		410,628		18,363		428,991
Cost of Sales
Product		295,310		2,204		297,514		290,980		2,229		293,209
Service		31,939		-		31,939		32,086		-		32,086
Total cost of sales		327,249		2,204		329,453		323,066		2,229		325,295
Gross Profit		88,321		9,830		98,151		87,562		16,134		103,696
Selling, general, and administrative		62,377		3,013		65,390		67,759		5,331		73,090
Depreciation and amortization		3,115		28		3,143		3,619		28		3,647
Interest and financing costs		-		355		355		-		694		694
Operating expenses		65,492		3,396		68,888		71,378		6,053		77,431
Operating income		22,829		6,434		29,263		16,184		10,081		26,265
Other income						813						997
Earnings before tax					$	30,076					$	27,262
Net Sales
Contracts with customers	$	411,175	$	1,904	$	413,079	$	404,918	$	1,689	$	406,607
Financing and other		4,395		10,130		14,525		5,710		16,674		22,384
Net Sales	$	415,570	$	12,034	$	427,604	$	410,628	$	18,363	$	428,991
Selected Financial Data - Statement of Cash Flow
Depreciation and amortization	$	3,311	$	991	$	4,302	$	3,691	$	1,449	$	5,140
Purchases of property, equipment and operating lease equipment	$	959	$	1	$	960	$	786	$	1,535	$	2,321
Selected Financial Data - Balance Sheet
Total assets	$	887,684	$	238,270	$	1,125,954	$	733,174	$	219,434	$	952,608

	Nine Months Ended
	December 31, 2020						December 31, 2019
	Technology		Financing		Total		Technology		Financing		Total
Sales
Product	$	1,026,845	$	39,563	$	1,066,408	$	1,032,620	$	45,047	$	1,077,667
Service		149,308		-		149,308		144,261		-		144,261
Net sales		1,176,153		39,563		1,215,716		1,176,881		45,047		1,221,928
Cost of Sales
Product		820,859		6,252		827,111		825,509		6,626		832,135
Service		92,935		-		92,935		90,427		-		90,427
Total cost of sales		913,794		6,252		920,046		915,936		6,626		922,562
Gross Profit		262,359		33,311		295,670		260,945		38,421		299,366
Selling, general, and administrative		190,519		11,227		201,746		197,615		11,785		209,400
Depreciation and amortization		9,916		84		10,000		10,555		112		10,667
Interest and financing costs		266		913		1,179		-		1,898		1,898
Operating expenses		200,701		12,224		212,925		208,170		13,795		221,965
Operating income		61,658		21,087		82,745		52,775		24,626		77,401
Other income						1,095						912
Earnings before tax					$	83,840					$	78,313
Net Sales
Contracts with customers	$	1,157,519	$	3,892	$	1,161,411	$	1,163,184	$	3,889	$	1,167,073
Financing and other		18,634		35,671		54,305		13,697		41,158		54,855
Net Sales	$	1,176,153	$	39,563	$	1,215,716	$	1,176,881	$	45,047	$	1,221,928
Selected Financial Data - Statement of Cash Flow
Depreciation and amortization	$	10,444	$	3,318	$	13,762	$	10,974	$	4,243	$	15,217
Purchases of property, equipment and operating lease equipment	$	4,060	$	167	$	4,227	$	3,461	$	3,748	$	7,209
Selected Financial Data - Balance Sheet
Total assets	$	887,684	$	238,270	$	1,125,954	$	733,174	$	219,434	$	952,608

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 for the three and nine month periods ended December 31, 2020, and 2019 in the tables below (in thousands):

	Three Months Ended December 31,						Nine Months Ended December 31,
	2020			2019			2020			2019
Customer end market:
Technology	$	57,346		$	77,841		$	203,634		$	251,523
Telecom, Media & Entertainment		123,441			84,707			277,020			218,217
Financial Services		60,610			56,395			154,763			149,241
State and local government and educational institutions		50,703			55,908			197,758			198,964
Healthcare		44,706			60,275			150,494			176,202
All others		78,764			75,502			192,484			182,734
Net sales		415,570			410,628			1,176,153			1,176,881
Less: Revenue from financing and other		(4,395	)		(5,710	)		(18,634	)		(13,697	)
Revenue from contracts with customers	$	411,175		$	404,918		$	1,157,519		$	1,163,184

	Three Months Ended December 31,						Nine Months Ended December 31,
	2020			2019			2020			2019
Vendor
Cisco Systems	$	132,290		$	169,265		$	433,388		$	488,051
NetApp		13,861			15,799			39,196			38,997
HP Inc. & HPE		14,100			15,853			47,533			57,952
Dell EMC		34,027			12,025			80,457			38,300
Arista Networks		22,157			12,862			42,420			60,578
Juniper Networks		29,781			27,419			68,076			58,843
All others		169,354			157,405			465,083			434,160
Net sales		415,570			410,628			1,176,153			1,176,881
Less: Revenue from financing and other		(4,395	)		(5,710	)		(18,634	)		(13,697	)
Revenue from contracts with customers	$	411,175		$	404,918		$	1,157,519		$	1,163,184

Financing Segment Disaggregation of Revenue

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