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SEGMENT REPORTING | 9 Months Ended
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Dec. 31, 2021
SEGMENT REPORTING [Abstract] |
SEGMENT REPORTING |
16. | SEGMENT REPORTING
Our operations are conducted through two operating segments that are also both reportable segments. Our technology segment includes sales of IT products, third-party software, third-party maintenance, advanced professional and managed services, and our proprietary software to commercial enterprises, state and local governments, and government contractors. Our financing segment consists of the financing of IT equipment, software, and related services to commercial enterprises, state and local governments, and government contractors. We measure the performance of the segments based on operating income. Our reportable segment information for the three-and nine-month periods ended December 31, 2021, and 2020 are summarized in the following table (in thousands):
|  | Three Months Ended |
|  | December 31, 2021 |  |  | December 31, 2020 |
|  | Technology |  |  | Financing |  |  | Total |  |  | Technology |  |  | Financing |  |  | Total |
Net Sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product |  | $ | 414,448 |  |  | $ | 17,859 |  |  | $ | 432,307 |  |  | $ | 363,478 |  |  | $ | 12,034 |  |  | $ | 375,512 |
Service |  |  | 62,527 |  |  |  | - |  |  |  | 62,527 |  |  |  | 52,092 |  |  |  | - |  |  |  | 52,092 |
Total |  |  | 476,975 |  |  |  | 17,859 |  |  |  | 494,834 |  |  |  | 415,570 |  |  |  | 12,034 |  |  |  | 427,604 |
Cost of Sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product |  |  | 334,585 |  |  |  | 5,225 |  |  |  | 339,810 |  |  |  | 295,310 |  |  |  | 2,204 |  |  |  | 297,514 |
Service |  |  | 37,907 |  |  |  | - |  |  |  | 37,907 |  |  |  | 31,939 |  |  |  | - |  |  |  | 31,939 |
Total |  |  | 372,492 |  |  |  | 5,225 |  |  |  | 377,717 |  |  |  | 327,249 |  |  |  | 2,204 |  |  |  | 329,453 |
Gross Profit |  |  | 104,483 |  |  |  | 12,634 |  |  |  | 117,117 |  |  |  | 88,321 |  |  |  | 9,830 |  |  |  | 98,151 |
Selling, general, and administrative |  |  | 73,413 |  |  |  | 3,461 |  |  |  | 76,874 |  |  |  | 62,377 |  |  |  | 3,013 |  |  |  | 65,390 |
Depreciation and amortization |  |  | 3,569 |  |  |  | 28 |  |  |  | 3,597 |  |  |  | 3,115 |  |  |  | 28 |  |  |  | 3,143 |
Interest and financing costs |  |  | 335 |  |  |  | 226 |  |  |  | 561 |  |  |  | - |  |  |  | 355 |  |  |  | 355 |
Operating expenses |  |  | 77,317 |  |  |  | 3,715 |  |  |  | 81,032 |  |  |  | 65,492 |  |  |  | 3,396 |  |  |  | 68,888 |
Operating income |  |  | 27,166 |  |  |  | 8,919 |  |  |  | 36,085 |  |  |  | 22,829 |  |  |  | 6,434 |  |  |  | 29,263 |
Other income (expense) |  |  |  |  |  |  |  |  |  |  | (175 | ) |  |  |  |  |  |  |  |  |  |  | 813 |
Earnings before tax |  |  |  |  |  |  |  |  |  | $ | 35,910 |  |  |  |  |  |  |  |  |  |  | $ | 30,076 |
Net Sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contracts with customers |  | $ | 473,763 |  |  | $ | 5,840 |  |  | $ | 479,603 |  |  | $ | 411,175 |  |  | $ | 1,904 |  |  | $ | 413,079 |
Financing and other |  |  | 3,212 |  |  |  | 12,019 |  |  |  | 15,231 |  |  |  | 4,395 |  |  |  | 10,130 |  |  |  | 14,525 |
Total |  | $ | 476,975 |  |  | $ | 17,859 |  |  | $ | 494,834 |  |  | $ | 415,570 |  |  | $ | 12,034 |  |  | $ | 427,604 |
Selected Financial Data - Statement of Cash Flow |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  | $ | 3,846 |  |  | $ | 2,730 |  |  | $ | 6,576 |  |  | $ | 3,311 |  |  | $ | 991 |  |  | $ | 4,302 |
Purchases of property, equipment and operating lease equipment |  | $ | 1,339 |  |  | $ | 3,793 |  |  | $ | 5,132 |  |  | $ | 959 |  |  | $ | 1 |  |  | $ | 960 |
Selected Financial Data - Balance Sheet |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total assets |  | $ | 998,594 |  |  | $ | 256,552 |  |  | $ | 1,255,146 |  |  | $ | 887,684 |  |  | $ | 238,270 |  |  | $ | 1,125,954 |
|  | Nine Months Ended |
|  | December 31, 2021 |  |  | December 31, 2020 |
|  | Technology |  |  | Financing |  |  | Total |  |  | Technology |  |  | Financing |  |  | Total |
Net Sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product |  | $ | 1,134,658 |  |  | $ | 55,866 |  |  | $ | 1,190,524 |  |  | $ | 1,026,845 |  |  | $ | 39,563 |  |  | $ | 1,066,408 |
Service |  |  | 178,976 |  |  |  | - |  |  |  | 178,976 |  |  |  | 149,308 |  |  |  | - |  |  |  | 149,308 |
Total |  |  | 1,313,634 |  |  |  | 55,866 |  |  |  | 1,369,500 |  |  |  | 1,176,153 |  |  |  | 39,563 |  |  |  | 1,215,716 |
Cost of Sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product |  |  | 899,437 |  |  |  | 15,229 |  |  |  | 914,666 |  |  |  | 820,859 |  |  |  | 6,252 |  |  |  | 827,111 |
Service |  |  | 109,203 |  |  |  | - |  |  |  | 109,203 |  |  |  | 92,935 |  |  |  | - |  |  |  | 92,935 |
Total |  |  | 1,008,640 |  |  |  | 15,229 |  |  |  | 1,023,869 |  |  |  | 913,794 |  |  |  | 6,252 |  |  |  | 920,046 |
Gross Profit |  |  | 304,994 |  |  |  | 40,637 |  |  |  | 345,631 |  |  |  | 262,359 |  |  |  | 33,311 |  |  |  | 295,670 |
Selling, general, and administrative |  |  | 210,369 |  |  |  | 9,784 |  |  |  | 220,153 |  |  |  | 190,519 |  |  |  | 11,227 |  |  |  | 201,746 |
Depreciation and amortization |  |  | 11,292 |  |  |  | 84 |  |  |  | 11,376 |  |  |  | 9,916 |  |  |  | 84 |  |  |  | 10,000 |
Interest and financing costs |  |  | 693 |  |  |  | 569 |  |  |  | 1,262 |  |  |  | 266 |  |  |  | 913 |  |  |  | 1,179 |
Operating expenses |  |  | 222,354 |  |  |  | 10,437 |  |  |  | 232,791 |  |  |  | 200,701 |  |  |  | 12,224 |  |  |  | 212,925 |
Operating income |  |  | 82,640 |  |  |  | 30,200 |  |  |  | 112,840 |  |  |  | 61,658 |  |  |  | 21,087 |  |  |  | 82,745 |
Other income (expense) |  |  |  |  |  |  |  |  |  |  | (377 | ) |  |  |  |  |  |  |  |  |  |  | 1,095 |
Earnings before tax |  |  |  |  |  |  |  |  |  | $ | 112,463 |  |  |  |  |  |  |  |  |  |  | $ | 83,840 |
Net Sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contracts with customers |  | $ | 1,300,643 |  |  | $ | 13,034 |  |  | $ | 1,313,677 |  |  | $ | 1,157,519 |  |  | $ | 3,892 |  |  | $ | 1,161,411 |
Financing and other |  |  | 12,991 |  |  |  | 42,832 |  |  |  | 55,823 |  |  |  | 18,634 |  |  |  | 35,671 |  |  |  | 54,305 |
Total |  | $ | 1,313,634 |  |  | $ | 55,866 |  |  | $ | 1,369,500 |  |  | $ | 1,176,153 |  |  | $ | 39,563 |  |  | $ | 1,215,716 |
Selected Financial Data - Statement of Cash Flow |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  | $ | 12,023 |  |  | $ | 6,597 |  |  | $ | 18,620 |  |  | $ | 10,444 |  |  | $ | 3,318 |  |  | $ | 13,762 |
Purchases of property, equipment and operating lease equipment |  | $ | 3,594 |  |  | $ | 17,781 |  |  | $ | 21,375 |  |  | $ | 4,060 |  |  | $ | 167 |  |  | $ | 4,227 |
Selected Financial Data - Balance Sheet |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total assets |  | $ | 998,594 |  |  | $ | 256,552 |  |  | $ | 1,255,146 |  |  | $ | 887,684 |  |  | $ | 238,270 |  |  | $ | 1,125,954 |
TECHNOLOGY SEGMENT DISAGGREGATION OF REVENUE We analyze net sales for our technology segment by customer end market and by vendor, as opposed to discrete product and service categories, which are summarized for the three and nine month periods ended December 31, 2021, and 2020 in the tables below (in thousands):
|  | Three Months Ended December 31, |  |  | Nine Months Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Customer end market: |  |  |  |  |  |  |  |  |  |  |  |
Telecom, Media & Entertainment |  | $ | 152,584 |  |  | $ | 123,441 |  |  | $ | 380,560 |  |  | $ | 277,020 |
Technology |  |  | 67,959 |  |  |  | 57,346 |  |  |  | 190,851 |  |  |  | 203,634 |
State and local government and educational institutions |  |  | 59,449 |  |  |  | 50,703 |  |  |  | 193,526 |  |  |  | 197,758 |
Healthcare |  |  | 64,775 |  |  |  | 44,706 |  |  |  | 207,700 |  |  |  | 150,494 |
Financial Services |  |  | 39,182 |  |  |  | 60,610 |  |  |  | 106,229 |  |  |  | 154,763 |
All others |  |  | 93,026 |  |  |  | 78,764 |  |  |  | 234,768 |  |  |  | 192,484 |
Net sales |  |  | 476,975 |  |  |  | 415,570 |  |  |  | 1,313,634 |  |  |  | 1,176,153 |
Less: Revenue from financing and other |  |  | (3,212 | ) |  |  | (4,395 | ) |  |  | (12,991 | ) |  |  | (18,634 | )
Revenue from contracts with customers |  | $ | 473,763 |  |  | $ | 411,175 |  |  | $ | 1,300,643 |  |  | $ | 1,157,519 |
|  | Three Months Ended December 31, |  |  | Nine Months Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Vendor |  |  |  |  |  |  |  |  |  |  |  |
Cisco Systems |  | $ | 183,195 |  |  | $ | 132,290 |  |  | $ | 524,169 |  |  | $ | 433,388 |
Dell / EMC |  |  | 40,254 |  |  |  | 34,027 |  |  |  | 110,092 |  |  |  | 80,457 |
Juniper Networks |  |  | 28,792 |  |  |  | 29,781 |  |  |  | 71,944 |  |  |  | 68,076 |
HP Inc. & HPE |  |  | 12,568 |  |  |  | 14,100 |  |  |  | 43,808 |  |  |  | 47,533 |
Arista Networks |  |  | 13,484 |  |  |  | 22,157 |  |  |  | 33,029 |  |  |  | 42,420 |
NetApp |  |  | 30,261 |  |  |  | 13,861 |  |  |  | 70,254 |  |  |  | 39,196 |
All others |  |  | 168,421 |  |  |  | 169,354 |  |  |  | 460,338 |  |  |  | 465,083 |
Net sales |  |  | 476,975 |  |  |  | 415,570 |  |  |  | 1,313,634 |  |  |  | 1,176,153 |
Less: Revenue from financing and other |  |  | (3,212 | ) |  |  | (4,395 | ) |  |  | (12,991 | ) |  |  | (18,634 | )
Revenue from contracts with customers |  | $ | 473,763 |  |  | $ | 411,175 |  |  | $ | 1,300,643 |  |  | $ | 1,157,519 |
FINANCING SEGMENT DISAGGREGATION OF REVENUE We analyze our revenues within our financing segment based on the nature of the arrangement. Our financing revenue generally consists of portfolio income, transactional gains, and post-contract earnings including month-to-month rents and the sales of off-lease equipment. All of our revenues from contracts with customers within our financing segment is from the sales of off-lease equipment.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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