Segment Reporting and Related Disclosures

12 Months Ended

May 31, 2012

Segment Reporting and Related Disclosures [Abstract]

Segment Reporting and Related Disclosures

Note 14: 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 and of 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, comprised $409,686 of T&M equipment and $37,595 of DP equipment at May 31, 2012 and $347,138 of T&M equipment and $39,654 of DP equipment at May 31, 2011.

Revenues for these operating segments were as follows for the fiscal year ended May 31:

	T&M		DP		Total
2012
Rentals and leases	$	113,540	$	16,197	$	129,737
Sales of equipment and other revenues		116,417		2,400		118,817
	$	229,957	$	18,597	$	248,554
2011
Rentals and leases	$	101,273	$	16,789	$	118,062
Sales of equipment and other revenues		108,450		2,217		110,667
	$	209,723	$	19,006	$	228,729
2010
Rentals and leases	$	77,874	$	16,327	$	94,201
Sales of equipment and other revenues		49,282		2,384		51,666
	$	127,156	$	18,711	$	145,867

No single customer accounted for more than 10% of total revenues during fiscal 2012, 2011 or 2010.

Selected country information is presented below:

Year ended May 31,	2012		2011		2010
Revenues: 1
U.S.	$	214,354	$	199,861	$	124,618
Other 2		34,200		28,868		21,249
Total	$	248,554	$	228,729	$	145,867
As of May 31,	2012		2011		2010
Net Long Lived Assets: 3
U.S.	$	211,759	$	180,591	$	166,533
Other 2		49,595		33,491		25,206
Total	$	261,354	$	214,082	$	191,739

¹  Revenues by country are based on the location of shipping destination, whether the order originates in the U.S. parent or a foreign subsidiary.

²  Other consists of other foreign countries that each individually accounts for less that 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.