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SEGMENT REPORTING
 9 Months Ended
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.