Accounts Receivable - Net

9 Months Ended

Dec. 31, 2018

Accounts Receivable - Net [Abstract]

Accounts Receivable - Net

7. Accounts Receivable — Net

The adoption of the new revenue recognition standard (see Note 4) impacted the previously reported accounts receivable—net, at March 31, 2018 as follows:

	March 31, 2018
	As Previously Reported			Adoption of ASC 606			As Adjusted
Accounts receivable — trade	$	83,700,000		$	-		$	83,700,000
Allowance for bad debts		(4,142,000	)		-			(4,142,000	)
Customer allowances earned		(11,370,000	)		11,370,000	(1)		-
Customer payment discrepancies		(1,110,000	)		-			(1,110,000	)
Customer returns RGA issued		(15,274,000	)		-			(15,274,000	)
Customer core returns accruals		(36,066,000	)		36,066,000	(2)		-
Less: total accounts receivable offset accounts		(67,962,000	)		47,436,000			(20,526,000	)
Total accounts receivable — net	$	15,738,000		$	47,436,000		$	63,174,000

(1) Customer allowances earned have been reclassified to contract liabilities in the consolidated balance sheet at March 31, 2018.

(2) Customer core returns accruals of $4,697,000 have been reclassified to contract liabilities and customer core returns accruals of $31,369,000 have been reclassified to long-term contract liabilities in the consolidated balance sheet at March 31, 2018.

Accounts receivable — net includes offset accounts related to customer payment discrepancies, returned goods authorizations (“RGA”) issued for in-transit unit returns, and potential bad debts.

Accounts receivable — net is comprised of the following:

	December 31, 2018			March 31, 2018
Accounts receivable — trade	$	82,208,000		$	83,700,000
Allowance for bad debts		(4,363,000	)		(4,142,000	)
Customer payment discrepancies		(811,000	)		(1,110,000	)
Customer returns RGA issued		(22,273,000	)		(15,274,000	)
Less: total accounts receivable offset accounts		(27,447,000	)		(20,526,000	)
Total accounts receivable — net	$	54,761,000		$	63,174,000

Warranty Returns

The Company allows its customers to return goods that their customers have returned to them, whether or not the returned item is defective (“warranty returns”). The Company accrues an estimate of its exposure to warranty returns based on a historical analysis of the level of this type of return as a percentage of total unit sales. Amounts charged to expense for these warranty returns are considered in arriving at the Company’s net sales. At December 31, 2018 and March 31, 2018, the Company’s total warranty return accrual was $19,152,000 and $16,646,000, respectively, of which $7,738,000 and $7,204,000, respectively, was included in the customer returns RGA issued balance in the above table for expected credits to be issued against accounts receivable and $11,414,000 and $9,442,000, respectively, was included in the customer finished goods returns accrual in the consolidated balance sheets for estimated future warranty returns.

The following summarizes the changes in the Company’s warranty return accrual:

	Three Months Ended December 31,						Nine Months Ended December 31,
	2018			2017			2018			2017
Balance at beginning of period	$	16,410,000		$	14,799,000		$	16,646,000		$	14,286,000
Charged to expense/additions		29,655,000			38,269,000			84,408,000			89,834,000
Amounts processed		(26,913,000	)		(24,048,000	)		(81,902,000	)		(75,100,000	)
Balance at end of period	$	19,152,000		$	29,020,000		$	19,152,000		$	29,020,000