SEGMENT REPORTING

12 Months Ended

Mar. 31, 2023

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

17. SEGMENT REPORTING

Our 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):

	Year Ended March 31,
	2023							2022							2021
	Technology		Financing		Total			Technology		Financing		Total			Technology		Financing		Total
Net Sales
Product	$	1,750,802	$	52,473	$	1,803,275		$	1,492,411	$	87,983	$	1,580,394		$	1,305,789	$	60,369	$	1,366,158
Service		264,443		-		264,443			240,625		-		240,625			202,165		-		202,165
Total		2,015,245		52,473		2,067,718			1,733,036		87,983		1,821,019			1,507,954		60,369		1,568,323
Cost of Sales
Product		1,370,061		9,439		1,379,500			1,175,789		35,154		1,210,943			1,036,627		13,050		1,049,677
Service		170,694		-		170,694			149,094		-		149,094			125,092		-		125,092
Total		1,540,755		9,439		1,550,194			1,324,883		35,154		1,360,037			1,161,719		13,050		1,174,769
Gross Profit		474,490		43,034		517,524			408,153		52,829		460,982			346,235		47,319		393,554
Selling, general, and administrative		317,885		15,635		333,520			283,690		13,427		297,117			256,210		15,053		271,263
Depreciation and amortization		13,598		111		13,709			14,535		111		14,646			13,839		112		13,951
Interest and financing costs		2,897		1,236		4,133			928		975		1,903			521		1,484		2,005
Operating expenses		334,380		16,982		351,362			299,153		14,513		313,666			270,570		16,649		287,219
Operating income		140,110		26,052		166,162			109,000		38,316		147,316			75,665		30,670		106,335
Other income (expense), net						(3,188	)						(432	)						571
Earnings before tax					$	162,974						$	146,884						$	106,906
Net Sales
Contracts with customers	$	1,992,568	$	9,304	$	2,001,872		$	1,718,093	$	34,842	$	1,752,935		$	1,484,104	$	12,369	$	1,496,473
Financing and other		22,677		43,169		65,846			14,943		53,141		68,084			23,850		48,000		71,850
Total	$	2,015,245	$	52,473	$	2,067,718		$	1,733,036	$	87,983	$	1,821,019		$	1,507,954	$	60,369	$	1,568,323

Selected Financial Data - Statement of Cash Flow
Depreciation and amortization	$	14,999	$	3,590	$	18,589	$	15,592	$	8,713	$	24,305	$	14,568	$	5,423	$	19,991
Purchases of property, equipment and operating lease equipment	$	7,693	$	1,687	$	9,380	$	4,951	$	18,231	$	23,182	$	4,752	$	6,761	$	11,513
Selected Financial Data - Balance Sheet
Total assets	$	1,147,821	$	267,005	$	1,414,826	$	941,743	$	224,460	$	1,166,203	$	828,576	$	248,199	$	1,076,775

TECHNOLOGY SEGMENT DISAGGREGATION OF REVENUE

We analyze net sales for our technology segment by customer end market, by type, and by the timing of the transfer of goods and services and our position as principal or agent, which are summarized below (in thousands):

	Year Ended March 31,
	2023			2022			2021
Customer end market:
Telecom, Media & Entertainment	$	532,921		$	502,408		$	371,913
Technology		393,594			250,485			251,683
State and local government and educational institutions		290,624			241,769			245,919
Healthcare		274,936			270,481			200,067
Financial Services		156,257			155,160			198,761
All others		366,913			312,733			239,611
Net sales		2,015,245			1,733,036			1,507,954
Less: Revenue from financing and other		(22,677	)		(14,943	)		(23,850	)
Revenue from contracts with customers	$	1,992,568		$	1,718,093		$	1,484,104
Type:
Data Center / Cloud	$	587,097		$	581,113		$	516,930
Networking		803,678			611,488			510,205
Security		214,459			158,927			155,186
Collaboration		57,472			57,244			47,504
Other		88,096			83,639			75,964
ePlus services		264,443			240,625			202,165
Net sales		2,015,245			1,733,036			1,507,954
Less: Revenue from financing and other		(22,677	)		(14,943	)		(23,850	)
Revenue from contracts with customers	$	1,992,568		$	1,718,093		$	1,484,104
Timing and position as principal or agent:
Transferred at a point in time as principal	$	1,566,760		$	1,342,799		$	1,174,582
Transferred at a point in time as agent		161,365			134,669			107,357
Transferred over time as principal		264,443			240,625			202,165
Revenue from contracts with customers	$	1,992,568		$	1,718,093		$	1,484,104

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. All revenues from contracts with customers in our financing segment are recognized at a point in time as principal.

GEOGRAPHIC INFORMATION

The geographic information for the years ended March 31, 2023, 2022, and 2021 was as follows (in thousands):

	Year Ended March 31,
	2023		2022		2021
Net sales:
US	$	1,953,465	$	1,716,525	$	1,476,466
Non US		114,253		104,494		91,857
Total	$	2,067,718	$	1,821,019	$	1,568,323

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.

	March 31,
	2023		2022
Long-lived tangible assets:
US	$	16,313	$	21,837
Non US		1,140		716
Total	$	17,453	$	22,553

Sales to Verizon Communications Inc. represented 22%, 24% and 19% of net sales for the years ended March 31, 2023, March 31, 2022, and March 31, 2021, respectively, all of which related to our technology segment.