SEGMENT REPORTING

12 Months Ended

Mar. 31, 2020

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

17. SEGMENT REPORTING

The Company’s segment information is presented in accordance with a “management approach,” which designates the internal reporting used by the chief operating decision-maker (“CODM”) for deciding how to allocate resources and for assessing performance. Our CODM is our Chief Executive Officer and President. Our CODM conducts our operations through two operating segments, our technology segment and our financing segment. Our technology segment includes sales of information technology products, third-party software, third-party maintenance, advanced professional and managed services and our proprietary software to commercial, state and local governments, and government contractors. Our financing segment consists of the financing of IT equipment, software and related services to commercial, state and local governments, and government contractors. Our CODM uses several measures to allocate resources and assess performance. Our reported measure is earnings before taxes.

Our reportable segment information was as follows (in thousands):

	Fiscal Year Ended
	March 31, 2020						March 31, 2019						March 31, 2018
	Technology		Financing		Total		Technology		Financing		Total		Technology		Financing		Total
Sales
Product	$	1,337,022	$	58,266	$	1,395,288	$	1,180,042	$	43,153	$	1,223,195	$	1,243,270	$	46,037	$	1,289,307
Service		193,116		-		193,116		149,478		-		149,478		129,495		-		129,495
Net sales	$	1,530,138	$	58,266	$	1,588,404	$	1,329,520	$	43,153	$	1,372,673	$	1,372,765	$	46,037	$	1,418,802
Cost of Sales
Product		1,069,110		7,663		1,076,773		945,037		7,427		952,464		1,013,748		9,842		1,023,590
Service		120,440		-		120,440		89,821		-		89,821		71,730		-		71,730
Total cost of sales		1,189,550		7,663		1,197,213		1,034,858		7,427		1,042,285		1,085,478		9,842		1,095,320
Gross Profit		340,588		50,603		391,191		294,662		35,726		330,388		287,287		36,195		323,482
Selling, general, and administrative		264,123		15,059		279,182		226,112		10,970		237,082		214,980		13,147		228,127
Depreciation and amortization		14,016		140		14,156		11,812		12		11,824		9,918		3		9,921
Interest and financing costs		294		2,280		2,574		-		1,948		1,948		-		1,195		1,195
Operating expenses		278,433		17,479		295,912		237,924		12,930		250,854		224,898		14,345		239,243
Operating income		62,155		33,124		95,279		56,738		22,796		79,534		62,389		21,850		84,239
Other income						680						6,696						(348	)
Earnings before tax					$	95,959					$	86,230					$	83,891
Net Sales
Contracts with customers	$	1,514,507	$	4,589	$	1,519,096	$	1,308,405	$	3,577	$	1,311,982	$	1,356,225	$	13,732	$	1,369,957
Financing and other		15,631		53,677		69,308		21,115		39,576		60,691		16,540		32,305		48,845
Net Sales	$	1,530,138	$	58,266	$	1,588,404	$	1,329,520	$	43,153	$	1,372,673	$	1,372,765	$	46,037	$	1,418,802
Selected Financial Data - Statement of Cash Flow
Depreciation and amortization	$	14,516	$	4,640	$	19,156	$	12,661	$	5,978	$	18,639	$	10,461	$	5,366	$	15,827
Purchases of property, equipment and operating lease equipment	$	4,842	$	2,167	$	7,009	$	6,042	$	5,587	$	11,629	$	5,353	$	2,237	$	7,590
Selected Financial Data - Balance Sheet
Total assets	$	709,854	$	199,259	$	909,113	$	607,998	$	178,200	$	786,198	$	537,776	$	217,695	$	755,471

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):

	Fiscal Year Ended March 31,
	2020			2019			2018
Customer end market:
Technology	$	324,239		$	293,362		$	330,241
Telecom, Media & Entertainment		289,958			175,260			194,292
Financial Services		191,679			202,074			201,712
SLED		243,092			223,330			234,141
Healthcare		233,894			193,754			189,889
All others		247,276			241,740			222,490
Net sales		1,530,138			1,329,520			1,372,765
Financing and other		(15,631	)		(21,115	)		(16,540	)
Revenue from contracts with customers	$	1,514,507		$	1,308,405		$	1,356,225

	Fiscal Year Ended March 31,
	2020			2019			2018
Vendor
Cisco Systems	$	607,719		$	556,182		$	582,419
NetApp		59,812			48,858			54,821
HP Inc. & HPE		71,802			74,348			86,675
Dell / EMC		84,939			61,284			54,294
Arista Networks		75,281			57,850			52,521
Juniper		68,339			48,943			44,623
All others		562,246			482,055			497,412
Net sales		1,530,138			1,329,520			1,372,765
Financing and other		(15,631	)		(21,115	)		(16,540	)
Revenue from contracts with customers	$	1,514,507		$	1,308,405		$	1,356,225

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.

Geographic information

The geographic information for the years ended March 31, 2020, 2019 and 2018 was as follows (in thousands):

	Year Ended March 31,
	2020		2019		2018
Net sales:
US	$	1,508,329	$	1,284,482	$	1,349,254
Non US		80,075		88,191		69,548
Total	$	1,588,404	$	1,372,673	$	1,418,802

	As of March 31,
	2020		2019
Long-lived tangible assets:
US	$	38,297	$	32,570
Non US		1,233		1,156
Total	$	39,530	$	33,726

Our long-lived tangible assets include property and equipment-net, operating leases-net, and equipment that has been returned to us at the termination of the lease.

Sales to a large telecom company represented 15% of net sales for the year ended March 31, 2020, all of which related to our technology segment. Sales to no one customer exceeded 10% of net sales for the year ended March 31, 2019. Sales to a large technology company were approximately 12% of net sales for the year ended March 31, 2018, all of which related to our technology segment.