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ALLOWANCE FOR CREDIT LOSSES
 12 Months Ended
Mar. 31, 2024
ALLOWANCE FOR CREDIT LOSSES [Abstract]  
ALLOWANCE FOR CREDIT LOSSES
7. ALLOWANCE FOR CREDIT LOSSES

The following table provides the activity in our allowance for credit losses for the years ended March 31, 2024, 2023, and 2022 (in thousands):

 
Accounts
Receivable
    
Notes
Receivable
    
Lease
Receivables
    
Total
  
Balance as of March 31, 2021
   $
2,064
     $
1,212
     $
1,171
     $
4,447
  
Provision for credit losses
    
482
      
(312
)
    
(272
)
    
(102
)
Write-offs and other
    
(135
)
    
(192
)
    
(218
)
    
(545
)
Balance as of March 31, 2022
    
2,411
      
708
      
681
      
3,800
  
Provision for credit losses
    
273
      
93
      
300
      
666
  
Write-offs and other
    
(112
)
    
-
      
-
      
(112
)
Balance as of March 31, 2023
    
2,572
      
801
      
981
      
4,354
  
Provision for credit losses
    
477
      
255
      
472
      
1,204
  
Write-offs and other
    
(362
)
    
-
      
(18
)
    
(379
)
Balance as of March 31, 2024
   $
2,687
     $
1,056
     $
1,435
     $
5,179
  

We evaluate our customers using an internally assigned credit quality rating “CQR”. The CQR categories of our financing receivables are:

•
High CQR: This rating includes accounts with excellent to good business credit, asset quality and capacity to meet financial obligations. Loss rates in this category are generally less than 1%.

•
Average CQR: This rating includes accounts with average credit risk that are more susceptible to loss in the event of adverse business or economic conditions. Loss rates in this category are in the range of 1% to 8%.

•
Low CQR: This rating includes accounts that have marginal credit risk such that the customer’s ability to make repayment is impaired or may likely become impaired. The loss rates in this category in the normal course are greater than 8% and up to 100%.

The following table provides the amortized cost basis of our financing receivables by CQR and by credit origination year as of March 31, 2024 (in thousands):

 
Amortized cost basis by origination year ending March 31,
                          
   
2024
    
2023
    
2022
    
2021
    
2020
    
2019
and prior
    
Total
    
Transfers
(2)
    
Net credit
exposure
  
                                                       
Notes receivable:
                                                      
High CQR
  
$
63,934
    
$
15,821
    
$
3,440
    
$
2,656
    
$
30
    
$
-
    
$
85,881
    
$
(25,683
)
  
$
60,198
  
Average CQR
    
18,715
      
3,260
      
302
      
52
      
-
      
-
      
22,329
      
(3,476
)
    
18,853
  
Total
  
$
82,649
    
$
19,081
    
$
3,742
    
$
2,708
    
$
30
    
$
-
    
$
108,210
    
$
(29,159
)
  
$
79,051
  
                                                                         
Lease receivables:
                                                                        
High CQR
  
$
22,123
    
$
9,457
    
$
1,341
    
$
1,151
    
$
100
    
$
7
    
$
34,179
    
$
(1,128
)
  
$
33,051
  
Average CQR
    
22,861
      
9,548
      
2,133
      
259
      
2
      
-
      
34,803
      
(5,436
)
    
29,367
  
Total
  
$
44,984
    
$
19,005
    
$
3,474
    
$
1,410
    
$
102
    
$
7
    
$
68,982
    
$
(6,564
)
  
$
62,418
  
                                                                         
Total amortized cost (1)
  
$
127,633
    
$
38,086
    
$
7,216
    
$
4,118
    
$
132
    
$
7
    
$
177,192
    
$
(35,723
)
  
$
141,469
  

  (1)
Unguaranteed residual values of $3,718 thousand that we retained after selling the related lease receivable is excluded from amortized cost.
  (2)
Transfers consist of receivables that have been transferred to third-party financial institutions on a non-recourse basis.

The following table provides the amortized cost basis of our financing receivables by CQR and by credit origination year as of March 31, 2023 (in thousands):

 
Amortized cost basis by origination year ending March 31,
                          
   
2023
    
2022
    
2021
    
2020
    
2019
     2018 and prior
    
Total
    
Transfers
(2)
    
Net credit
exposure
  
                                                       
Notes receivable:
                                                      
High CQR
  
$
72,155
    
$
11,378
    
$
11,267
    
$
370
    
$
30
     $ -    
$
95,200
    
$
(28,115
)
  
$
67,085
  
Average CQR
    
12,793
      
2,675
      
213
      
115
      
61
       1      
15,858
      
(1,432
)
    
14,426
  
Total
  
$
84,948
    
$
14,053
    
$
11,480
    
$
485
    
$
91
     $ 1    
$
111,058
    
$
(29,547
)
  
$
81,511
  
                                                                         
Lease receivables:
                                                                        
High CQR
  
$
21,629
    
$
3,842
    
$
1,916
    
$
565
    
$
51
     $
9    
$
28,012
    
$
(1,437
)
  
$
26,575
  
Average CQR
    
23,796
      
3,430
      
770
      
35
      
3
       -      
28,034
      
(1,594
)
    
26,440
  
Total
  
$
45,425
    
$
7,272
    
$
2,686
    
$
600
    
$
54
     $ 9    
$
56,046
    
$
(3,031
)
  
$
53,015
  
                                                                         
Total amortized cost (1)
  
$
130,373
    
$
21,325
    
$
14,166
    
$
1,085
    
$
145
     $ 10    
$
167,104
    
$
(32,578
)
  
$
134,526
  

  (1)
Unguaranteed residual values of $4,222 thousand that we retained after selling the related lease receivable is excluded from amortized cost.
  (2)
Transfers consist of receivables that have been transferred to third-party financial institutions on a non-recourse basis and receivables that are in the process of being transferred to third-party financial institutions.

The following table provides an aging analysis of our financing receivables as of March 31, 2024 (in thousands):

 
31-60
Days Past
Due
    
61-90
Days Past
Due
    
> 90
Days Past
Due
    
Total
Past Due
    
Current
    
Total
Billed
    
Unbilled
    
Amortized
Cost
  
Notes receivable
  
$
1,251
    
$
334
    
$
2,484
    
$
4,069
    
$
9,337
    
$
13,406
    
$
94,804
 
$
108,210
  
Lease receivables
    
1,174
      
284
      
2,213
      
3,671
      
4,691
      
8,362
      
60,620
   
68,982
  
Total
  
$
2,425
    
$
618
    
$
4,697
    
$
7,740
    
$
14,028
    
$
21,768
    
$
155,424
 
$
177,192
  

The following table provides an aging analysis of our financing receivables as of March 31, 2023 (in thousands):

 
31-60
Days Past
Due
    
61-90
Days Past
Due
    
> 90
Days Past
Due
    
Total
Past Due
    
Current
    
Total
Billed
    
Unbilled
    
Amortized
Cost
  
Notes receivable
  
$
1,020
    
$
862
    
$
473
    
$
2,355
    
$
7,703
    
$
10,058
    
$
101,000
    
$
111,058
  
Lease receivables
    
1,068
      
463
      
864
      
2,395
      
5,413
      
7,808
      
48,238
      
56,046
  
Total
  
$
2,088
    
$
1,325
    
$
1,337
    
$
4,750
    
$
13,116
    
$
17,866
    
$
149,238
    
$
167,104
  

Our financial assets on nonaccrual status were not significant as of March 31, 2024, and March 31, 2023.