Segment Reporting and Related Disclosures

9 Months Ended

Feb. 28, 2015

Segment Reporting [Abstract]

Segment Reporting and Related Disclosures

Segment Reporting and Related Disclosures

Accounting guidance establishes reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. In order to determine our operating segments, we considered the following: an operating segment is a component of an enterprise (i) that engages in business activities from which it may earn revenues and incur expenses, (ii) whose operating results are regularly reviewed by the enterprise’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and (iii) for which discrete financial information is available. In accordance with this guidance, we have identified two operating segments in our business: our T&M and DP businesses.

Although we have separate operating segments for T&M and DP equipment, these two segments are aggregated into a single reportable segment because they have similar economic characteristics and qualitative factors. The T&M and DP segments have similar long-term average gross margins, and both rent, lease and sell electronic equipment to large corporations, purchase directly from major manufacturers, configure and calibrate the equipment, and ship directly to customers. Additionally, DP segment revenues are less than 10% of total company revenues, and are not considered material.

Our equipment pool, based on acquisition cost, consisted of $420,771 of T&M equipment and $37,501 of DP equipment at February 28, 2015 and $421,128 of T&M equipment and $37,911 of DP equipment at May 31, 2014.

Revenues for these operating segments were as follows for the three months ended February 28, 2015 and 2014:

	T&M		DP		Total
2015
Rentals and leases	$	26,372	$	3,880	$	30,252
Sales of equipment and other revenues	25,799		291		26,090
	$	52,171	$	4,171	$	56,342
2014
Rentals and leases	$	28,793	$	3,692	$	32,485
Sales of equipment and other revenues	29,221		310		29,531
	$	58,014	$	4,002	$	62,016

Revenues for these operating segments were as follows for the nine months ended February 28, 2015 and 2014:

	T&M		DP		Total
2015
Rentals and leases	$	84,410	$	13,200	$	97,610
Sales of equipment and other revenues	79,033		1,273		80,306
	$	163,443	$	14,473	$	177,916
2014
Rentals and leases	$	90,673	$	12,674	$	103,347
Sales of equipment and other revenues	75,334		1,379		76,713
	$	166,007	$	14,053	$	180,060

No single customer accounted for more than 10% of total revenues during the nine months ended February 28, 2015 and 2014.

Selected country information is presented below:

	Three Months Ended February 28,				Nine Months Ended February 28,
	2015		2014		2015		2014
Revenues:1
U.S.	$	47,922	$	52,638	$	149,320	$	151,775
Other 2	8,420		9,378		28,596		28,285
Total	$	56,342	$	62,016	$	177,916	$	180,060

	As of
	February 28, 2015		May 31, 2014
Net Long-Lived Assets:3
U.S.	$	185,283	$	188,343
Other 2	44,875		46,667
Total	$	230,158	$	235,010

¹    Revenues by country are based on the shipping destination.

²    Other consists of countries other than the U.S. Each foreign country individually accounts for less than 10% of the total revenues and long-lived assets.

³    Net long-lived assets include rental and lease equipment and other property, net of accumulated depreciation and amortization.