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ALLOWANCE FOR CREDIT LOSSES | 3 Months Ended
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Jun. 30, 2024
ALLOWANCE FOR CREDIT LOSSES [Abstract] |
ALLOWANCE FOR CREDIT LOSSES |
7. | ALLOWANCE FOR CREDIT LOSSES
The following table provides the activity in our allowance for credit losses for the three months ended June 30, 2024, and 2023 (in thousands):
|  | Accounts Receivable |  |  | Notes Receivable |  |  | Lease Receivables |  |  | Total |
Balance as of April 1, 2024 |  | $ | 2,687 |  |  | $ | 1,056 |  |  | $ | 1,435 |  |  | $ | 5,178 |
Provision for credit losses |  |  | 90 |  |  |  | 32 |  |  |  | (26 | ) |  |  | 96 |
Write-offs and other |  |  | (13 | ) |  |  | - |  |  |  | - |  |  |  | (13 | )
Balance as of June 30, 2024 |  | $ | 2,764 |  |  | $ | 1,088 |  |  | $ | 1,409 |  |  | $ | 5,261 |
|  | Accounts Receivable |  |  | Notes Receivable |  |  | Lease Receivables |  |  | Total |
Balance as of April 1, 2023 |  | $ | 2,572 |  |  | $ | 801 |  |  | $ | 981 |  |  | $ | 4,354 |
Provision for credit losses |  |  | 629 |  |  |  | (106 | ) |  |  | (45 | ) |  |  | 478 |
Write-offs and other |  |  | (13 | ) |  |  | 1 |  |  |  | - |  |  |  | (12 | )
Balance as of June 30, 2023 |  | $ | 3,188 |  |  | $ | 696 |  |  | $ | 936 |  |  | $ | 4,820 |
We evaluate our customers using an internally assigned credit quality rating “CQR”. The CQR categories of our financing receivables are:
• | High CQR: This rating includes accounts with excellent to good business credit, asset quality and capacity to meet financial obligations. Loss rates in this category are generally less than 1%.
• | Average CQR: This rating includes accounts with average credit risk that are more susceptible to loss in the event of adverse business or economic conditions. Loss rates in this category are in the range of 1% to 8%.
• | Low CQR: This rating includes accounts that have marginal credit risk such that the customer’s ability to make repayment is impaired or may likely become impaired. The loss rates in this category in the normal course are greater than 8% and up to 100%.
The following table provides the amortized cost basis of our financing receivables by CQR and by credit origination year as of June 30, 2024 (in thousands):
|  | Amortized cost basis by origination year ending March 31, |  |  |  |  |  |  |  |  |  |
|  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 and prior |  |  | Total |  |  | Transfers (2) |  |  | Net credit exposure |
Notes receivable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
High CQR |  | $ | 25,158 |  |  | $ | 48,541 |  |  | $ | 14,290 |  |  | $ | 1,858 |  |  | $ | 1,786 |  |  | $ | 24 |  |  | $ | 91,657 |  |  | $ | (26,831 | ) |  | $ | 64,826 |
Average CQR |  |  | 2,490 |  |  |  | 14,551 |  |  |  | 2,895 |  |  |  | 148 |  |  |  | 28 |  |  |  | - |  |  |  | 20,112 |  |  |  | (3,302 | ) |  |  | 16,810 |
Total |  | $ | 27,648 |  |  | $ | 63,092 |  |  | $ | 17,185 |  |  | $ | 2,006 |  |  | $ | 1,814 |  |  | $ | 24 |  |  | $ | 111,769 |  |  | $ | (30,133 | ) |  | $ | 81,636 |
Lease receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
High CQR |  | $ | 15,363 |  |  | $ | 18,528 |  |  | $ | 8,750 |  |  | $ | 1,218 |  |  | $ | 946 |  |  | $ | 84 |  |  | $ | 44,889 |  |  | $ | (2,931 | ) |  | $ | 41,958 |
Average CQR |  |  | 6,298 |  |  |  | 14,816 |  |  |  | 8,373 |  |  |  | 1,732 |  |  |  | 164 |  |  |  | 2 |  |  |  | 31,385 |  |  |  | (4,292 | ) |  |  | 27,093 |
Total |  | $ | 21,661 |  |  | $ | 33,344 |  |  | $ | 17,123 |  |  | $ | 2,950 |  |  | $ | 1,110 |  |  | $ | 86 |  |  | $ | 76,274 |  |  | $ | (7,223 | ) |  | $ | 69,051 |
Total amortized cost (1) |  | $ | 49,309 |  |  | $ | 96,436 |  |  | $ | 34,308 |  |  | $ | 4,956 |  |  | $ | 2,924 |  |  | $ | 110 |  |  | $ | 188,043 |  |  | $ | (37,356 | ) |  | $ | 150,687 |
| (1) | Unguaranteed residual values of $3,554 thousand that we retained after selling the related lease receivable excluded from amortized cost.
| (2) | Transfers consist of receivables that have been transferred to third-party financial institutions on a non-recourse basis.
The following table provides the amortized cost basis of our financing receivables by CQR and by credit origination year as of March 31, 2024 (in thousands):
|  | Amortized cost basis by origination year ending March 31, |  |  |  |  |  |  |  |  |  |
|  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 and prior |  |  | Total |  |  | Transfers (2) |  |  | Net credit exposure |
Notes receivable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
High CQR |  | $ | 63,934 |  |  | $ | 15,821 |  |  | $ | 3,440 |  |  | $ | 2,656 |  |  | $ | 30 |  |  | $ | - |  |  | $ | 85,881 |  |  | $ | (25,683 | ) |  | $ | 60,198 |
Average CQR |  |  | 18,715 |  |  |  | 3,260 |  |  |  | 302 |  |  |  | 52 |  |  |  | - |  |  |  | - |  |  |  | 22,329 |  |  |  | (3,476 | ) |  |  | 18,853 |
Total |  | $ | 82,649 |  |  | $ | 19,081 |  |  | $ | 3,742 |  |  | $ | 2,708 |  |  | $ | 30 |  |  | $ | - |  |  | $ | 108,210 |  |  | $ | (29,159 | ) |  | $ | 79,051 |
Lease receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
High CQR |  | $ | 22,123 |  |  | $ | 9,457 |  |  | $ | 1,341 |  |  | $ | 1,151 |  |  | $ | 100 |  |  | $ | 7 |  |  | $ | 34,179 |  |  | $ | (1,128 | ) |  | $ | 33,051 |
Average CQR |  |  | 22,861 |  |  |  | 9,548 |  |  |  | 2,133 |  |  |  | 259 |  |  |  | 2 |  |  |  | - |  |  |  | 34,803 |  |  |  | (5,436 | ) |  |  | 29,367 |
Total |  | $ | 44,984 |  |  | $ | 19,005 |  |  | $ | 3,474 |  |  | $ | 1,410 |  |  | $ | 102 |  |  | $ | 7 |  |  | $ | 68,982 |  |  | $ | (6,564 | ) |  | $ | 62,418 |
Total amortized cost (1) |  | $ | 127,633 |  |  | $ | 38,086 |  |  | $ | 7,216 |  |  | $ | 4,118 |  |  | $ | 132 |  |  | $ | 7 |  |  | $ | 177,192 |  |  | $ | (35,723 | ) |  | $ | 141,469 |
| (1) | Unguaranteed residual values of $3,718 thousand that we retained after selling the related lease receivable excluded from amortized cost.
| (2) | Transfers consist of receivables that have been transferred to third-party financial institutions on a non-recourse basis.
The following table provides an aging analysis of our financing receivables as of June 30, 2024 (in thousands):
|  | 31-60 Days Past Due |  |  | 61-90 Days Past Due |  |  | > 90 Days Past Due |  |  | Total Past Due |  |  | Current |  |  | Total Billed |  |  | Unbilled |  |  | Amortized Cost |
Notes receivable |  | $ | 174 |  |  | $ | 823 |  |  | $ | 1,153 |  |  | $ | 2,150 |  |  | $ | 7,302 |  |  | $ | 9,452 |  |  | $ | 102,317 |  |  | $ | 111,769 |
Lease receivables |  |  | 281 |  |  |  | 522 |  |  |  | 1,852 |  |  |  | 2,655 |  |  |  | 5,191 |  |  |  | 7,846 |  |  |  | 68,428 |  |  |  | 76,274 |
Total |  | $ | 455 |  |  | $ | 1,345 |  |  | $ | 3,005 |  |  | $ | 4,805 |  |  | $ | 12,493 |  |  | $ | 17,298 |  |  | $ | 170,745 |  |  | $ | 188,043 |
The following table provides an aging analysis of our financing receivables as of March 31, 2024 (in thousands):
|  | 31-60 Days Past Due |  |  | 61-90 Days Past Due |  |  | > 90 Days Past Due |  |  | Total Past Due |  |  | Current |  |  | Total Billed |  |  | Unbilled |  |  | Amortized Cost |
Notes receivable |  | $ | 1,251 |  |  | $ | 334 |  |  | $ | 2,484 |  |  | $ | 4,069 |  |  | $ | 9,337 |  |  | $ | 13,406 |  |  | $ | 94,804 |  |  | $ | 108,210 |
Lease receivables |  |  | 1,174 |  |  |  | 284 |  |  |  | 2,213 |  |  |  | 3,671 |  |  |  | 4,691 |  |  |  | 8,362 |  |  |  | 60,620 |  |  |  | 68,982 |
Total |  | $ | 2,425 |  |  | $ | 618 |  |  | $ | 4,697 |  |  | $ | 7,740 |  |  | $ | 14,028 |  |  | $ | 21,768 |  |  | $ | 155,424 |  |  | $ | 177,192 |
Our financial assets on nonaccrual status were not significant as of June 30, 2024, and March 31, 2024.

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