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FINANCING RECEIVABLES AND OPERATING LEASES | 12 Months Ended
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Mar. 31, 2019
FINANCING RECEIVABLES AND OPERATING LEASES [Abstract] |
FINANCING RECEIVABLES AND OPERATING LEASES |
4. | FINANCING RECEIVABLES AND OPERATING LEASES
FINANCING RECEIVABLES—NET Our financing receivables, net consist of the following (in thousands):
March 31, 2019 |  | Notes Receivables |  |  | Lease-Related Receivables |  |  | Total Financing Receivables |
Minimum payments |  | $ | 40,563 |  |  | $ | 64,201 |  |  | $ | 104,764 |
Estimated unguaranteed residual value (1) |  |  | - |  |  |  | 14,639 |  |  |  | 14,639 |
Initial direct costs, net of amortization (2) |  |  | 377 |  |  |  | 332 |  |  |  | 709 |
Unearned income |  |  | - |  |  |  | (7,671 | ) |  |  | (7,671 | )
Reserve for credit losses (3) |  |  | (505 | ) |  |  | (530 | ) |  |  | (1,035 | )
Total, net |  | $ | 40,435 |  |  | $ | 70,971 |  |  | $ | 111,406 |
Reported as: |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 30,852 |  |  | $ | 32,914 |  |  | $ | 63,766 |
Long-term |  |  | 9,583 |  |  |  | 38,057 |  |  |  | 47,640 |
Total, net |  | $ | 40,435 |  |  | $ | 70,971 |  |  | $ | 111,406 |
| (1) | Includes $8,996 thousand for the estimated residual values of direct financing leases for which we sold the financing assets.
| (2) | Initial direct costs are shown net of amortization of $275 thousand.
| (3) | For details on reserve for credit losses, refer to Note 6, “Reserves for Credit Losses.”
March 31, 2018 |  | Notes Receivables |  |  | Lease-Related Receivables |  |  | Total Financing Receivables |
Minimum payments |  | $ | 62,992 |  |  | $ | 65,943 |  |  | $ | 128,935 |
Estimated unguaranteed residual value (1) |  |  | - |  |  |  | 11,226 |  |  |  | 11,226 |
Initial direct costs, net of amortization (2) |  |  | 375 |  |  |  | 334 |  |  |  | 709 |
Unearned income |  |  | - |  |  |  | (8,251 | ) |  |  | (8,251 | )
Reserve for credit losses (3) |  |  | (486 | ) |  |  | (640 | ) |  |  | (1,126 | )
Total, net |  | $ | 62,881 |  |  | $ | 68,612 |  |  | $ | 131,493 |
Reported as: |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 39,993 |  |  | $ | 29,943 |  |  | $ | 69,936 |
Long-term |  |  | 22,888 |  |  |  | 38,669 |  |  |  | 61,557 |
Total, net |  | $ | 62,881 |  |  | $ | 68,612 |  |  | $ | 131,493 |
| (1) | Includes $6,004 thousand for estimated residual values of direct financing leases for which we sold the financing assets.
| (2) | Initial direct costs are shown net of amortization of $341 thousand.
| (3) | For details on reserve for credit losses, refer to Note 6, “Reserves for Credit Losses.”
Future scheduled minimum lease payments for investments in direct financing and sales-type leases as of March 31, 2019 are as follows (in thousands):
Year ending March 31, 2019 |  | $ | 37,223 |
2020 |  |  | 17,382 |
2021 |  |  | 7,469 |
2022 |  |  | 1,960 |
2023 and thereafter |  |  | 167 |
Total |  | $ | 64,201 |
OPERATING LEASES—NET Operating leases—net represents leases that do not qualify as direct financing leases. The components of the operating leases—net are as follows (in thousands):
|  | March 31, 2019 |  |  | March 31, 2018 |
Cost of equipment under operating leases |  | $ | 21,532 |  |  | $ | 15,683 |
Accumulated depreciation |  |  | (10,139 | ) |  |  | (8,729 | )
Investment in operating lease equipment—net (1) |  | $ | 11,393 |  |  | $ | 6,954 |
(1) | Amounts include estimated unguaranteed residual values of $2,906 thousand and $1,921 thousand as of March 31, 2019 and 2018, respectively.
Future scheduled minimum lease rental payments as of March 31, 2019 are as follows (in thousands):
Year ending March 31, 2019 |  | $ | 4,490 |
2020 |  |  | 2,728 |
2021 |  |  | 1,497 |
2022 |  |  | 1,315 |
2023 and thereafter |  |  | 443 |
Total |  | $ | 10,473 |
TRANSFERS OF FINANCIAL ASSETS We enter into arrangements to transfer the contractual payments due under financing receivables and operating lease agreements, which are accounted for as secured borrowings or sales. For transfers accounted for as a secured borrowing, the corresponding investments serve as collateral for non-recourse notes payable. As of March 31, 2019, and 2018 we had financing receivables of $50.2 million and $52.0 million, respectively, and operating leases of $7.8 million and $5.3 million, respectively that were collateral for non-recourse notes payable. See Note 8, “Notes Payable and Credit Facility.” For transfers accounted for as sales, we derecognize the carrying value of the asset transferred and recognize a net gain or loss on the sale, which are presented within net sales in the consolidated statement of operations. For the years ended March 31, 2019, 2018, and 2017, we recognized net gains of $9.1 million, $6.8 million, and $8.1 million, respectively, and total proceeds from these sales were $276.1 million, $267.3 million, and $339.4 million, respectively. When we retain servicing obligations in transfers accounted for as sales, we allocate a portion of the proceeds to deferred revenues, which is recognized as we perform the services. As of March 31, 2019, and 2018, we had deferred revenue of $0.4 million and $0.5 million, respectively, for servicing obligations. In a limited number of transfers accounted for as sales, we indemnified the assignee in the event that the lessee elects to early terminate the lease. As of March 31, 2019, our maximum potential future payments related to such guarantees is $0.4 million. We believe the possibility of making any payments to be remote.

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