XML 39 R24.htm IDEA: XBRL DOCUMENT
v3.24.1.1.u2

SEGMENT REPORTING | 12 Months Ended
--- | ---
Mar. 31, 2024
SEGMENT REPORTING [Abstract] |
SEGMENT REPORTING | 17. SEGMENT REPORTING We manage and report our operating results through four operating segments: product, professional services, managed services, and financing. Our product segment includes sales of IT products, third-party software, and third-party maintenance, software assurance, and other third-party services. Our professional services segment includes our advanced professional services, staff augmentation, project management services, cloud consulting services and security services. Our managed services segment includes our advanced managed services, service desk, storage-as-a-service, cloud hosted services, cloud managed services and managed security services. We refer to the product segment, professional services segment, and managed services segment collectively as our technology business. Our financing business 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 within our technology business based on gross profit, while we measure our financing business segment based on operating income. We do not present asset information for our reportable segments as we do not provide asset information to our chief operating decision maker. The following table provides reportable segment information (in thousands):
|  | Year Ended March 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Net Sales |  |  |  |  |  |  |  |  |
Product |  | $ | 1,883,809 |  |  | $ | 1,750,802 |  |  | $ | 1,492,411 |
Professional services |  |  | 154,549 |  |  |  | 151,785 |  |  |  | 146,747 |
Managed services |  |  | 137,528 |  |  |  | 112,658 |  |  |  | 93,878 |
Financing |  |  | 49,416 |  |  |  | 52,473 |  |  |  | 87,983 |
Total |  |  | 2,225,302 |  |  |  | 2,067,718 |  |  |  | 1,821,019 |
Gross Profit |  |  |  |  |  |  |  |  |  |  |  |
Product |  |  | 397,618 |  |  |  | 380,741 |  |  |  | 316,622 |
Professional services |  |  | 68,194 |  |  |  | 61,594 |  |  |  | 63,384 |
Managed services |  |  | 42,667 |  |  |  | 32,155 |  |  |  | 28,147 |
Financing |  |  | 42,314 |  |  |  | 43,034 |  |  |  | 52,829 |
Total |  |  | 550,793 |  |  |  | 517,524 |  |  |  | 460,982 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |
Technology business |  |  | 375,919 |  |  |  | 334,380 |  |  |  | 299,153 |
Financing |  |  | 16,617 |  |  |  | 16,982 |  |  |  | 14,513 |
Total |  |  | 392,536 |  |  |  | 351,362 |  |  |  | 313,666 |
Operating income |  |  |  |  |  |  |  |  |  |  |  |
Technology business |  |  | 132,560 |  |  |  | 140,110 |  |  |  | 109,000 |
Financing |  |  | 25,697 |  |  |  | 26,052 |  |  |  | 38,316 |
Total |  |  | 158,257 |  |  |  | 166,162 |  |  |  | 147,316 |
Other income (expense), net |  |  | 2,836 |  |  |  | (3,188 | ) |  |  | (432 | )
Earnings before tax |  | $ | 161,093 |  |  | $ | 162,974 |  |  | $ | 146,884 |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |
Technology business |  | $ | 20,951 |  |  | $ | 13,598 |  |  | $ | 14,535 |
Financing |  |  | 74 |  |  |  | 111 |  |  |  | 111 |
Total |  | $ | 21,025 |  |  | $ | 13,709 |  |  | $ | 14,646 |
Interest and financing costs |  |  |  |  |  |  |  |  |  |  |  |
Technology business |  | $ | 1,428 |  |  | $ | 2,897 |  |  | $ | 928 |
Financing |  |  | 2,349 |  |  |  | 1,236 |  |  |  | 975 |
Total |  | $ | 3,777 |  |  | $ | 4,133 |  |  | $ | 1,903 |
Selected Financial Data - Statement of Cash Flow |  |  |  |  |  |  |  |  |  |  |  |
Purchases of property, equipment, and operating lease equipment: |  |  |  |  |  |  |  |  |  |  |  |
Technology business |  | $ | 7,454 |  |  | $ | 7,693 |  |  | $ | 4,951 |
Financing |  |  | 1,049 |  |  |  | 1,687 |  |  |  | 18,231 |
Total |  | $ | 8,503 |  |  | $ | 9,380 |  |  | $ | 23,182 |
The following tables provide a disaggregation of net sales by source and further disaggregate our revenue recognized from contracts with customers by timing and our position as principal or agent (in thousands):
|  | Year ended March 31, 2024 |
|  | Product |  |  | Professional Services |  |  | Managed Services |  |  | Financing |  |  | Total |
Net Sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contracts with customers |  | $ | 1,862,231 |  |  | $ | 154,549 |  |  | $ | 137,528 |  |  | $ | 5,926 |  |  | $ | 2,160,234 |
Financing and other |  |  | 21,578 |  |  |  | - |  |  |  | - |  |  |  | 43,490 |  |  |  | 65,068 |
Total |  | $ | 1,883,809 |  |  | $ | 154,549 |  |  | $ | 137,528 |  |  | $ | 49,416 |  |  | $ | 2,225,302 |
Timing and position as principal or agent: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Transferred at a point in time as principal |  | $ | 1,687,639 |  |  | $ | - |  |  | $ | - |  |  | $ | 5,926 |  |  | $ | 1,693,565 |
Transferred at a point in time as agent |  |  | 174,592 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 174,592 |
Transferred over time as principal |  |  | - |  |  |  | 154,549 |  |  |  | 137,528 |  |  |  | - |  |  |  | 292,077 |
Total revenue from contracts with customers |  | $ | 1,862,231 |  |  | $ | 154,549 |  |  | $ | 137,528 |  |  | $ | 5,926 |  |  | $ | 2,160,234 |
|  | Year ended March 31, 2023 |
|  | Product |  |  | Professional Services |  |  | Managed Services |  |  | Financing |  |  | Total |
Net Sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contracts with customers |  | $ | 1,728,125 |  |  | $ | 151,785 |  |  | $ | 112,658 |  |  | $ | 9,304 |  |  | $ | 2,001,872 |
Financing and other |  |  | 22,677 |  |  |  | - |  |  |  | - |  |  |  | 43,169 |  |  |  | 65,846 |
Total |  | $ | 1,750,802 |  |  | $ | 151,785 |  |  | $ | 112,658 |  |  | $ | 52,473 |  |  | $ | 2,067,718 |
Timing and position as principal or agent: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Transferred at a point in time as principal |  | $ | 1,566,760 |  |  | $ | - |  |  | $ | - |  |  | $ | 9,304 |  |  | $ | 1,576,064 |
Transferred at a point in time as agent |  |  | 161,365 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 161,365 |
Transferred over time as principal |  |  | - |  |  |  | 151,785 |  |  |  | 112,658 |  |  |  | - |  |  |  | 264,443 |
Total revenue from contracts with customers |  | $ | 1,728,125 |  |  | $ | 151,785 |  |  | $ | 112,658 |  |  | $ | 9,304 |  |  | $ | 2,001,872 |
|  | Year ended March 31, 2022 |
|  | Product |  |  | Professional Services |  |  | Managed Services |  |  | Financing |  |  | Total |
Net Sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contracts with customers |  | $ | 1,477,468 |  |  | $ | 146,747 |  |  | $ | 93,878 |  |  | $ | 34,842 |  |  | $ | 1,752,935 |
Financing and other |  |  | 14,943 |  |  |  | - |  |  |  | - |  |  |  | 53,141 |  |  |  | 68,084 |
Total |  | $ | 1,492,411 |  |  | $ | 146,747 |  |  | $ | 93,878 |  |  | $ | 87,983 |  |  | $ | 1,821,019 |
Timing and position as principal or agent: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Transferred at a point in time as principal |  | $ | 1,342,769 |  |  | $ | - |  |  | $ | - |  |  | $ | 34,842 |  |  | $ | 1,377,611 |
Transferred at a point in time as agent |  |  | 134,699 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 134,699 |
Transferred over time as principal |  |  | - |  |  |  | 146,747 |  |  |  | 93,878 |  |  |  | - |  |  |  | 240,625 |
Total revenue from contracts with customers |  | $ | 1,477,468 |  |  | $ | 146,747 |  |  | $ | 93,878 |  |  | $ | 34,842 |  |  | $ | 1,752,935 |
TECHNOLOGY BUSINESS DISAGGREGATION OF REVENUE The following table provides a disaggregation of our revenue from contracts with customers for our technology business by customer end market and by type (in thousands):
|  | Year Ended March 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Customer end market: |  |  |  |  |  |  |  |  |
Telecom, media & entertainment |  | $ | 547,525 |  |  | $ | 532,921 |  |  | $ | 502,408 |
Technology |  |  | 379,720 |  |  |  | 393,594 |  |  |  | 250,485 |
SLED |  |  | 329,617 |  |  |  | 290,624 |  |  |  | 241,769 |
Healthcare |  |  | 278,893 |  |  |  | 274,936 |  |  |  | 270,481 |
Financial services |  |  | 243,630 |  |  |  | 156,257 |  |  |  | 155,160 |
All others |  |  | 396,501 |  |  |  | 366,913 |  |  |  | 312,733 |
Net sales |  |  | 2,175,886 |  |  |  | 2,015,245 |  |  |  | 1,733,036 |
Less: revenue from financing and other |  |  | (21,578 | ) |  |  | (22,677 | ) |  |  | (14,943 | )
Total revenue from contracts with customers |  | $ | 2,154,308 |  |  | $ | 1,992,568 |  |  | $ | 1,718,093 |
Type: |  |  |  |  |  |  |  |  |  |  |  |
Product |  |  |  |  |  |  |  |  |  |  |  |
Networking |  | $ | 1,005,679 |  |  | $ | 803,678 |  |  | $ | 611,488 |
Cloud |  |  | 546,341 |  |  |  | 587,097 |  |  |  | 581,113 |
Security |  |  | 193,956 |  |  |  | 214,459 |  |  |  | 158,927 |
Collaboration |  |  | 65,714 |  |  |  | 57,472 |  |  |  | 57,244 |
Other |  |  | 72,119 |  |  |  | 88,096 |  |  |  | 83,639 |
Total product |  |  | 1,883,809 |  |  |  | 1,750,802 |  |  |  | 1,492,411 |
Professional services |  |  | 154,549 |  |  |  | 151,785 |  |  |  | 146,747 |
Managed services |  |  | 137,528 |  |  |  | 112,658 |  |  |  | 93,878 |
Net sales |  |  | 2,175,886 |  |  |  | 2,015,245 |  |  |  | 1,733,036 |
Less: revenue from financing and other |  |  | (21,578 | ) |  |  | (22,677 | ) |  |  | (14,943 | )
Total revenue from contracts with customers |  | $ | 2,154,308 |  |  | $ | 1,992,568 |  |  | $ | 1,718,093 |
We do not disaggregate sales by customer end market beyond the technology business. FINANCING BUSINESS SEGMENT DISAGGREGATION OF REVENUE We analyze our revenues within our financing business 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 our revenues from contracts with customers within our financing business segment are from the sales of off-lease equipment. GEOGRAPHIC INFORMATION The geographic information for the years ended March 31, 2024, 2023, and 2022 was as follows (in thousands):
|  | Year Ended March 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Net sales: |  |  |  |  |  |  |  |  |
US |  | $ | 2,127,695 |  |  | $ | 1,953,465 |  |  | $ | 1,716,525 |
Non-US |  |  | 97,607 |  |  |  | 114,253 |  |  |  | 104,494 |
Total |  | $ | 2,225,302 |  |  | $ | 2,067,718 |  |  | $ | 1,821,019 |
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, |
|  | 2024 |  |  | 2023 |
Long-lived tangible assets: |  |  |  |  |  |
US |  | $ | 16,258 |  |  | $ | 16,313 |
Non-US |  |  | 582 |  |  |  | 1,140 |
Total |  | $ | 16,840 |  |  | $ | 17,453 |
Sales to Verizon Communications Inc. represented 19%, 22% and 24% of net sales for the years ended March 31, 2024, March 31, 2023, and March 31, 2022, respectively, all of which related to our technology business segments.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration