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SEGMENT REPORTING | 12 Months Ended
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Mar. 31, 2023
SEGMENT REPORTING [Abstract] |
SEGMENT REPORTING | 17. SEGMENT REPORTING Our segment information is presented in accordance with a “management approach,” which designates the internal reporting used by the chief operating decision-maker (“CODM”) for deciding how to allocate resources and for assessing performance. Our CODM is our Chief Executive Officer and President. Our CODM conducts our operations through two operating segments- our technology segment and our financing segment. Our technology segment includes sales of information technology products, third-party software, third-party maintenance, advanced professional and managed services and our proprietary software to commercial, state, and local governments, and government contractors. Our financing segment consists of the financing of IT equipment, software and related services to commercial, state, and local governments, and government contractors. Our CODM uses several measures to allocate resources and assess performance. Our reported measure is earnings before taxes. Our reportable segment information was as follows (in thousands):
|  | Year Ended March 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | Technology |  |  | Financing |  |  | Total |  |  | Technology |  |  | Financing |  |  | Total |  |  | Technology |  |  | Financing |  |  | Total |
Net Sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product |  | $ | 1,750,802 |  |  | $ | 52,473 |  |  | $ | 1,803,275 |  |  | $ | 1,492,411 |  |  | $ | 87,983 |  |  | $ | 1,580,394 |  |  | $ | 1,305,789 |  |  | $ | 60,369 |  |  | $ | 1,366,158 |
Service |  |  | 264,443 |  |  |  | - |  |  |  | 264,443 |  |  |  | 240,625 |  |  |  | - |  |  |  | 240,625 |  |  |  | 202,165 |  |  |  | - |  |  |  | 202,165 |
Total |  |  | 2,015,245 |  |  |  | 52,473 |  |  |  | 2,067,718 |  |  |  | 1,733,036 |  |  |  | 87,983 |  |  |  | 1,821,019 |  |  |  | 1,507,954 |  |  |  | 60,369 |  |  |  | 1,568,323 |
Cost of Sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product |  |  | 1,370,061 |  |  |  | 9,439 |  |  |  | 1,379,500 |  |  |  | 1,175,789 |  |  |  | 35,154 |  |  |  | 1,210,943 |  |  |  | 1,036,627 |  |  |  | 13,050 |  |  |  | 1,049,677 |
Service |  |  | 170,694 |  |  |  | - |  |  |  | 170,694 |  |  |  | 149,094 |  |  |  | - |  |  |  | 149,094 |  |  |  | 125,092 |  |  |  | - |  |  |  | 125,092 |
Total |  |  | 1,540,755 |  |  |  | 9,439 |  |  |  | 1,550,194 |  |  |  | 1,324,883 |  |  |  | 35,154 |  |  |  | 1,360,037 |  |  |  | 1,161,719 |  |  |  | 13,050 |  |  |  | 1,174,769 |
Gross Profit |  |  | 474,490 |  |  |  | 43,034 |  |  |  | 517,524 |  |  |  | 408,153 |  |  |  | 52,829 |  |  |  | 460,982 |  |  |  | 346,235 |  |  |  | 47,319 |  |  |  | 393,554 |
Selling, general, and administrative |  |  | 317,885 |  |  |  | 15,635 |  |  |  | 333,520 |  |  |  | 283,690 |  |  |  | 13,427 |  |  |  | 297,117 |  |  |  | 256,210 |  |  |  | 15,053 |  |  |  | 271,263 |
Depreciation and amortization |  |  | 13,598 |  |  |  | 111 |  |  |  | 13,709 |  |  |  | 14,535 |  |  |  | 111 |  |  |  | 14,646 |  |  |  | 13,839 |  |  |  | 112 |  |  |  | 13,951 |
Interest and financing costs |  |  | 2,897 |  |  |  | 1,236 |  |  |  | 4,133 |  |  |  | 928 |  |  |  | 975 |  |  |  | 1,903 |  |  |  | 521 |  |  |  | 1,484 |  |  |  | 2,005 |
Operating expenses |  |  | 334,380 |  |  |  | 16,982 |  |  |  | 351,362 |  |  |  | 299,153 |  |  |  | 14,513 |  |  |  | 313,666 |  |  |  | 270,570 |  |  |  | 16,649 |  |  |  | 287,219 |
Operating income |  |  | 140,110 |  |  |  | 26,052 |  |  |  | 166,162 |  |  |  | 109,000 |  |  |  | 38,316 |  |  |  | 147,316 |  |  |  | 75,665 |  |  |  | 30,670 |  |  |  | 106,335 |
Other income (expense), net |  |  |  |  |  |  |  |  |  |  | (3,188 | ) |  |  |  |  |  |  |  |  |  |  | (432 | ) |  |  |  |  |  |  |  |  |  |  | 571 |
Earnings before tax |  |  |  |  |  |  |  |  |  | $ | 162,974 |  |  |  |  |  |  |  |  |  |  | $ | 146,884 |  |  |  |  |  |  |  |  |  |  | $ | 106,906 |
Net Sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contracts with customers |  | $ | 1,992,568 |  |  | $ | 9,304 |  |  | $ | 2,001,872 |  |  | $ | 1,718,093 |  |  | $ | 34,842 |  |  | $ | 1,752,935 |  |  | $ | 1,484,104 |  |  | $ | 12,369 |  |  | $ | 1,496,473 |
Financing and other |  |  | 22,677 |  |  |  | 43,169 |  |  |  | 65,846 |  |  |  | 14,943 |  |  |  | 53,141 |  |  |  | 68,084 |  |  |  | 23,850 |  |  |  | 48,000 |  |  |  | 71,850 |
Total |  | $ | 2,015,245 |  |  | $ | 52,473 |  |  | $ | 2,067,718 |  |  | $ | 1,733,036 |  |  | $ | 87,983 |  |  | $ | 1,821,019 |  |  | $ | 1,507,954 |  |  | $ | 60,369 |  |  | $ | 1,568,323 |
Selected Financial Data - Statement of Cash Flow |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  | $ | 14,999 |  |  | $ | 3,590 |  |  | $ | 18,589 |  |  | $ | 15,592 |  |  | $ | 8,713 |  |  | $ | 24,305 |  |  | $ | 14,568 |  |  | $ | 5,423 |  |  | $ | 19,991 |
Purchases of property, equipment and operating lease equipment |  | $ | 7,693 |  |  | $ | 1,687 |  |  | $ | 9,380 |  |  | $ | 4,951 |  |  | $ | 18,231 |  |  | $ | 23,182 |  |  | $ | 4,752 |  |  | $ | 6,761 |  |  | $ | 11,513 |
Selected Financial Data - Balance Sheet |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total assets |  | $ | 1,147,821 |  |  | $ | 267,005 |  |  | $ | 1,414,826 |  |  | $ | 941,743 |  |  | $ | 224,460 |  |  | $ | 1,166,203 |  |  | $ | 828,576 |  |  | $ | 248,199 |  |  | $ | 1,076,775 |
TECHNOLOGY SEGMENT DISAGGREGATION OF REVENUE We analyze net sales for our technology segment by customer end market, by type, and by the timing of the transfer of goods and services and our position as principal or agent, which are summarized below (in thousands):
|  | Year Ended March 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Customer end market: |  |  |  |  |  |  |  |  |
Telecom, Media & Entertainment |  | $ | 532,921 |  |  | $ | 502,408 |  |  | $ | 371,913 |
Technology |  |  | 393,594 |  |  |  | 250,485 |  |  |  | 251,683 |
State and local government and educational institutions |  |  | 290,624 |  |  |  | 241,769 |  |  |  | 245,919 |
Healthcare |  |  | 274,936 |  |  |  | 270,481 |  |  |  | 200,067 |
Financial Services |  |  | 156,257 |  |  |  | 155,160 |  |  |  | 198,761 |
All others |  |  | 366,913 |  |  |  | 312,733 |  |  |  | 239,611 |
Net sales |  |  | 2,015,245 |  |  |  | 1,733,036 |  |  |  | 1,507,954 |
Less: Revenue from financing and other |  |  | (22,677 | ) |  |  | (14,943 | ) |  |  | (23,850 | )
Revenue from contracts with customers |  | $ | 1,992,568 |  |  | $ | 1,718,093 |  |  | $ | 1,484,104 |
Type: |  |  |  |  |  |  |  |  |  |  |  |
Data Center / Cloud |  | $ | 587,097 |  |  | $ | 581,113 |  |  | $ | 516,930 |
Networking |  |  | 803,678 |  |  |  | 611,488 |  |  |  | 510,205 |
Security |  |  | 214,459 |  |  |  | 158,927 |  |  |  | 155,186 |
Collaboration |  |  | 57,472 |  |  |  | 57,244 |  |  |  | 47,504 |
Other |  |  | 88,096 |  |  |  | 83,639 |  |  |  | 75,964 |
ePlus services |  |  | 264,443 |  |  |  | 240,625 |  |  |  | 202,165 |
Net sales |  |  | 2,015,245 |  |  |  | 1,733,036 |  |  |  | 1,507,954 |
Less: Revenue from financing and other |  |  | (22,677 | ) |  |  | (14,943 | ) |  |  | (23,850 | )
Revenue from contracts with customers |  | $ | 1,992,568 |  |  | $ | 1,718,093 |  |  | $ | 1,484,104 |
Timing and position as principal or agent: |  |  |  |  |  |  |  |  |  |  |  |
Transferred at a point in time as principal |  | $ | 1,566,760 |  |  | $ | 1,342,799 |  |  | $ | 1,174,582 |
Transferred at a point in time as agent |  |  | 161,365 |  |  |  | 134,669 |  |  |  | 107,357 |
Transferred over time as principal |  |  | 264,443 |  |  |  | 240,625 |  |  |  | 202,165 |
Revenue from contracts with customers |  | $ | 1,992,568 |  |  | $ | 1,718,093 |  |  | $ | 1,484,104 |
FINANCING SEGMENT DISAGGREGATION OF REVENUE We analyze our revenues within our financing segment based on the nature of the arrangement, and our revenues from contracts with customers consist of proceeds from the sale of off-lease equipment. All revenues from contracts with customers in our financing segment are recognized at a point in time as principal. GEOGRAPHIC INFORMATION The geographic information for the years ended March 31, 2023, 2022, and 2021 was as follows (in thousands):
|  | Year Ended March 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Net sales: |  |  |  |  |  |  |  |  |
US |  | $ | 1,953,465 |  |  | $ | 1,716,525 |  |  | $ | 1,476,466 |
Non US |  |  | 114,253 |  |  |  | 104,494 |  |  |  | 91,857 |
Total |  | $ | 2,067,718 |  |  | $ | 1,821,019 |  |  | $ | 1,568,323 |
Our long-lived tangible assets include property and equipment-net, operating leases-net, and equipment that has been returned to us at the termination of the lease.
|  | March 31, |
|  | 2023 |  |  | 2022 |
Long-lived tangible assets: |  |  |  |  |  |
US |  | $ | 16,313 |  |  | $ | 21,837 |
Non US |  |  | 1,140 |  |  |  | 716 |
Total |  | $ | 17,453 |  |  | $ | 22,553 |
Sales to Verizon Communications Inc. represented 22%, 24% and 19% of net sales for the years ended March 31, 2023, March 31, 2022, and March 31, 2021, respectively, all of which related to our technology segment.

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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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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