Segment Reporting and Related Disclosures

6 Months Ended

Nov. 30, 2011

Segment Reporting and Related Disclosures [Abstract]

Segment Reporting and Related Disclosures

Note 9: 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: the rental, lease and sale of T&M equipment and the rental, lease and sale of data products (“DP”) equipment.

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.

Our equipment pool, based on acquisition cost, consisted of $387,775 of T&M equipment and $40,294 of DP equipment at November 30, 2011 and $347,138 of T&M equipment and $39,654 of DP equipment at May 31, 2011.

Revenues for these product groups were as follows for the three months ended November 30, 2011 and 2010:

	T&M		DP		Total
2011
Rentals and leases	$	28,651	$	4,261	$	32,912
Sales of equipment and other revenues		28,113		618		28,731
	$	56,764	$	4,879	$	61,643
2010
Rentals and leases	$	25,186	$	4,487	$	29,673
Sales of equipment and other revenues		23,093		511		23,604
	$	48,279	$	4,998	$	53,277

Revenues for these product groups were as follows for the six months ended November 30, 2011 and 2010:

	T&M		DP		Total
2011
Rentals and leases	$	55,253	$	8,968	$	64,221
Sales of equipment and other revenues		54,829		1,243		56,072
	$	110,082	$	10,211	$	120,293
2010
Rentals and leases	$	49,223	$	9,237	$	58,460
Sales of equipment and other revenues		44,463		1,179		45,642
	$	93,686	$	10,416	$	104,102

No single customer accounted for more than 10% of total revenues during the three and six months ended November 30, 2011 and 2010.

Selected country information is presented below:

	Three Months Ended November 30,				Six Months Ended November 30,
	2011		2010		2011		2010
Revenues: (1)
U.S.	$	53,490	$	46,875	$	103,577	$	91,999
Other (2)		8,153		6,402		16,716		12,103
Total	$	61,643	$	53,277	$	120,293	$	104,102

	As of
	November 30, 2011		May 31, 2011
Net Long-Lived Assets: (3)
U.S.	$	204,924	$	180,591
Other (2)		47,150		33,491
Total	$	252,074	$	214,082

(1) Revenues by country are based on the location of shipping destination, and not whether the order originates in the United States parent or a foreign subsidiary.

(2) Other consists of foreign countries that each individually account for less than 10% of the total revenues or assets.

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