FINANCING RECEIVABLES AND OPERATING LEASES (Tables)

3 Months Ended

Jun. 30, 2019

FINANCING RECEIVABLES AND OPERATING LEASES [Abstract]

The following table provides the profit recognized for sales-type leases at their commencement date for the three months ended June 30, 2019 (in thousands):

	Three months ended June 30, 2019
Net sales	$	4,854
Cost of sales		3,950
Gross Profit	$	904

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

	Three months ended June 30, 2019
Interest Income on sales-type leases	$	2,095
Lease income on operating leases		5,359

Notes Receivable Net and Investments in Leases

Our financing receivables-net consist of the following (in thousands):

June 30, 2019	Notes Receivables			Lease-Related Receivables			Total Financing Receivables

Minimum payments	$	63,074		$	85,396		$	148,470
Estimated unguaranteed residual value (1)		-			18,768			18,768
Initial direct costs, net of amortization (2)		319			374			693
Unearned income		-			(10,867	)		(10,867	)
Reserve for credit losses (3)		(520	)		(512	)		(1,032	)
Total, net	$	62,873		$	93,159		$	156,032
Reported as:
Current	$	48,383		$	50,036		$	98,419
Long-term		14,490			43,123			57,613
Total, net	$	62,873		$	93,159		$	156,032

(1)

Includes estimated unguaranteed residual values of $12,326 thousand for sales type leases, which have been sold and accounted for as sales.

(2)

Initial direct costs are shown net of amortization of $306 thousand.

(3)

For details on reserve for credit losses, refer to Note 7, “Reserves for Credit Losses.”

March 31, 2019	Notes Receivables			Lease-Related Receivables			Total Financing Receivables

Minimum payments	$	40,563		$	64,201		$	104,764
Estimated unguaranteed residual value (1)		-			14,639			14,639
Initial direct costs, net of amortization (2)		377			332			709
Unearned income		-			(7,671	)		(7,671	)
Reserve for credit losses (3)		(505	)		(530	)		(1,035	)
Total, net	$	40,435		$	70,971		$	111,406
Reported as:
Current	$	30,852		$	32,914		$	63,766
Long-term		9,583			38,057			47,640
Total, net	$	40,435		$	70,971		$	111,406

(1)

Includes $8,996 thousand for the estimated residual values of sales type leases and direct financing leases for which we sold the financing assets.

(2)

Initial direct costs are shown net of amortization of $275 thousand.

(3)

For details on reserve for credit losses, refer to Note 7, “Reserves for Credit Losses.”

Future Scheduled Minimum Lease Payments

Future scheduled minimum lease payments for investments in sales-type leases as of June 30, 2019 are as follows (in thousands):

Remainder of Year ending March 31, 2020	$	49,243
Year ending March 31, 2021		20,723
Year ending March 31, 2022		11,211
Year ending March 31, 2023		3,510
Year ending March 31, 2024 and thereafter		709
Total	$	85,396

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):

	June 30, 2019			March 31, 2019

Cost of equipment under operating leases	$	24,162		$	21,532
Accumulated depreciation		(10,678	)		(10,139	)
Investment in operating lease equipment—net (1)	$	13,484		$	11,393

(1)

These totals include estimated unguaranteed residual values of $3,104 thousand and $2,906 thousand as of June 30, 2019 and March 31, 2019, respectively.

Future Minimum Rental Payments for Operating Leases

Future scheduled minimum lease rental payments as of June 30, 2019 are as follows (in thousands):

Remainder of Year ending March 31, 2020	$	3,794
Year ending March 31, 2021		3,760
Year ending March 31, 2022		2,498
Year ending March 31, 2023		1,451
Year ending March 31, 2024 and thereafter		443
Total	$	11,946