FINANCING RECEIVABLES AND OPERATING LEASES (Tables)

3 Months Ended

Jun. 30, 2022

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 months ended June 30, 2022, and 2021 (in thousands):

	Three months ended June 30,
	2022		2021
Net sales	$	4,983	$	3,817
Cost of sales		4,067		3,365
Gross profit	$	916	$	452

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, 2022, and 2021 (in thousands):

	Three months ended June 30,
	2022		2021
Interest income on sales-type leases	$	861	$	1,290
Lease income on operating leases	$	4,582	$	5,210

Notes Receivable Net and Investments in Leases

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

June 30, 2022	Notes Receivable			Lease Receivables			Financing Receivables
Gross receivables	$	88,178		$	51,103		$	139,281
Unguaranteed residual value (1)		-			9,233			9,233
Unearned income		(3,346	)		(4,996	)		(8,342	)
Allowance for credit losses (2)		(792	)		(913	)		(1,705	)
Total, net	$	84,040		$	54,427		$	138,467
Reported as:
Current	$	52,547		$	22,623		$	75,170
Long-term		31,493			31,804			63,297
Total, net	$	84,040		$	54,427		$	138,467

(1) Includes unguaranteed residual values of $5,607 thousand that we retained after selling the related lease receivable.

(2) Refer to Note 6, “Allowance for Credit Losses” for details.

March 31, 2022	Notes Receivable			Lease Receivables			Financing Receivables
Gross receivables	$	80,517		$	38,788		$	119,305
Unguaranteed residual value (1)		-			9,141			9,141
Unearned income		(2,728	)		(3,604	)		(6,332	)
Allowance for credit losses (2)		(708	)		(681	)		(1,389	)
Total, net	$	77,081		$	43,644		$	120,725
Reported as:
Current	$	45,415		$	16,077		$	61,492
Long-term		31,666			27,567			59,233
Total, net	$	77,081		$	43,644		$	120,725

(1) Includes unguaranteed residual values of $6,424 thousand that we retained after selling the related lease receivable.

(2) Refer to Note 6, “Allowance for Credit Losses” for details.

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, 2022			March 31, 2022
Cost of equipment under operating leases	$	14,322		$	13,044
Accumulated depreciation		(8,900	)		(7,985	)
Investment in operating lease equipment—net (1)	$	5,422		$	5,059

(1) Amounts include estimated unguaranteed residual values of $1.8 million and $1.7 million as of June 30, 2022, and March 31, 2022, respectively.