FINANCING RECEIVABLES AND OPERATING LEASES (Tables)

12 Months Ended

Mar. 31, 2020

FINANCING RECEIVABLES AND OPERATING LEASES [Abstract]

The following table provides the profit recognized for sales-type leases at their commencement date (in thousands):

	Year ended March 31, 2020
Net sales	$	15,631
Cost of sales		13,039
Gross Profit	$	2,592

The following table provides interest income in aggregate for sales-type leases and lease income for operating leases (in thousands):

	Year ended March 31, 2020
Interest Income on sales-type leases	$	6,623
Lease income on operating leases	$	18,534

Notes Receivable Net and Investments in Leases

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

March 31, 2020	Notes Receivables			Lease-Related Receivables			Total 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 (2)		212			247			459
Unearned income		-			(11,612	)		(11,612	)
Reserve for credit losses (3)		(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 estimated unguaranteed residual values of $14,972 thousand for sales-type leases, which have been sold and accounted for as sales.

(2)

Initial direct costs are shown net of amortization of $295 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 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 March 31, 2020, are as follows (in thousands):

Year ending March 31, 2021	$	39,414
2022		16,471
2023		9,396
2024		2,597
2025 and thereafter		1,614
Total	$	69,492

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):

	March 31, 2020			March 31, 2019
Cost of equipment under operating leases	$	21,276		$	21,532
Accumulated depreciation		(11,159	)		(10,139	)
Investment in operating lease equipment—net (1)	$	10,117		$	11,393

(1)

Amounts include estimated unguaranteed residual values of $3.1 million and $2.9 million as of March 31, 2020, and 2019, respectively.

Future Minimum Rental Payments for Operating Leases

Future scheduled minimum lease rental payments as of March 31, 2020, are as follows (in thousands):

Year ending March 31, 2021	$	4,844
2022		2,982
2023		1,653
2024		465
2025 and thereafter		22
Total	$	9,966