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SEGMENT REPORTING
 9 Months Ended
Dec. 31, 2024
SEGMENT REPORTING [Abstract]  
SEGMENT REPORTING
16.      SEGMENT REPORTING
 
We manage and report our operating results through four operating segments: product, professional services, managed services, and financing.
 
We refer to the product segment, professional services segment, and managed services segment collectively as our technology business. 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. With our acquisition of Bailiwick, our professional services segment also includes projects supporting digital signage, electric vehicle (“EV”) charging solutions, loss prevention and security, store openings, and store closings. 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.
  
Our financing business segment leases IT equipment, medical equipment, and other equipment, and sells the off-lease equipment at the end of the lease. Additionally, our financing business segment finances purchases of third-party software licenses, software assurance, maintenance, and other services.
  
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):
  
  
Three Months Ended
 
Nine Months Ended
  
December 31,
 
December 31,
  
2024
 
2023
 
2024
 
2023
Net sales
            
Product
 
$
379,472
  
$
419,478
  
$
1,226,397
  
$
1,418,581
 
Professional services
  
69,497
   
40,044
   
168,676
   
113,870
 
Managed services
  
44,150
   
34,640
   
126,827
   
99,335
 
Financing
  
17,846
   
14,893
   
48,775
   
39,055
 
Total
  
510,965
   
509,055
   
1,570,675
   
1,670,841
 
                 
Gross profit
                
Product
  
84,046
   
91,919
   
271,910
   
308,059
 
Professional services
  
27,841
   
17,332
   
68,879
   
47,852
 
Managed services
  
13,160
   
11,015
   
38,333
   
31,006
 
Financing
  
15,838
   
13,544
   
44,235
   
33,531
 
Total
  
140,885
   
133,810
   
423,357
   
420,448
 
                 
Operating expenses
                
Technology business
  
108,117
   
91,599
   
302,835
   
278,869
 
Financing
  
4,257
   
4,164
   
13,824
   
12,337
 
Total
  
112,374
   
95,763
   
316,659
   
291,206
 
                 
Operating income
                
Technology business
  
16,930
   
28,667
   
76,287
   
108,048
 
Financing
  
11,581
   
9,380
   
30,411
   
21,194
 
Total
  
28,511
   
38,047
   
106,698
   
129,242
 
                 
Other income—net
  
3,650
   
366
   
6,302
   
673
 
                 
Earnings before tax
 
$
32,161
  
$
38,413
  
$
113,000
  
$
129,915
 
                 
Depreciation and amortization
                
Technology business
 
$
7,676
  
$
5,381
  
$
18,260
  
$
15,747
 
Financing
  
-
   
18
   
-
   
74
 
Total
 
$
7,676
  
$
5,399
  
$
18,260
  
$
15,821
 
                 
Interest and financing costs
                
Technology business
 
$
-
  
$
217
  
$
-
  
$
1,428
 
Financing
  
517
   
766
   
1,639
   
1,626
 
Total
 
$
517
  
$
983
  
$
1,639
  
$
3,054
 
                 
Selected Financial Data - Statement of Cash Flow
                
                 
Purchases of property, equipment, and operating lease equipment
                
Technology business
 
$
1,487
  
$
2,028
  
$
3,358
  
$
6,717
 
Financing
  
-
   
68
   
1,387
   
987
 
Total
 
$
1,487
  
$
2,096
  
$
4,745
  
$
7,704
 
 
The following tables provide a disaggregation of net sales by source and further disaggregates our revenue recognized from contracts with customers by timing and our position as principal or agent (in thousands):
  
  
Three months ended December 31, 2024
  
Product
 
Professional
Services
 
Managed
Services
 
Financing
 
Total
Net Sales:
               
Contracts with customers
 
$
366,365
  
$
69,497
  
$
44,150
  
$
3,434
  
$
483,446
 
Financing and other
  
13,107
   
-
   
-
   
14,412
   
27,519
 
Total
 
$
379,472
  
$
69,497
  
$
44,150
  
$
17,846
  
$
510,965
 
                     
Timing and position as principal or agent:
                    
Transferred at a point in time as principal
 
$
318,849
  
$
-
  
$
-
  
$
3,434
  
$
322,283
 
Transferred at a point in time as agent
  
47,516
   
-
   
-
   
-
   
47,516
 
Transferred over time as principal
  
-
   
69,497
   
44,150
   
-
   
113,647
 
Total revenue from contracts with customers
 
$
366,365
  
$
69,497
  
$
44,150
  
$
3,434
  
$
483,446
 
 
  
Nine months ended December 31, 2024
  
Product
 
Professional
Services
 
Managed
Services
 
Financing
 
Total
Net Sales:
               
Contracts with customers
 
$
1,201,925
  
$
168,676
  
$
126,827
  
$
5,191
  
$
1,502,619
 
Financing and other
  
24,472
   
-
   
-
   
43,584
   
68,056
 
Total
 
$
1,226,397
  
$
168,676
  
$
126,827
  
$
48,775
  
$
1,570,675
 
                     
Timing and position as principal or agent:
                    
Transferred at a point in time as principal
 
$
1,068,023
  
$
-
  
$
-
  
$
5,191
  
$
1,073,214
 
Transferred at a point in time as agent
  
133,902
   
-
   
-
   
-
   
133,902
 
Transferred over time as principal
  
-
   
168,676
   
126,827
   
-
   
295,503
 
Total revenue from contracts with customers
 
$
1,201,925
  
$
168,676
  
$
126,827
  
$
5,191
  
$
1,502,619
 
 
  
Three months ended December 31, 2023
  
Product
 
Professional
Services
 
Managed
Services
 
Financing
 
Total
Net Sales:
               
Contracts with customers
 
$
412,060
  
$
40,044
  
$
34,640
  
$
774
  
$
487,518
 
Financing and other
  
7,418
   
-
   
-
   
14,119
   
21,537
 
Total
 
$
419,478
  
$
40,044
  
$
34,640
  
$
14,893
  
$
509,055
 
                     
Timing and position as principal or agent:
                    
Transferred at a point in time as principal
 
$
367,350
  
$
-
  
$
-
  
$
774
  
$
368,124
 
Transferred at a point in time as agent
  
44,710
   
-
   
-
   
-
   
44,710
 
Transferred over time as principal
  
-
   
40,044
   
34,640
   
-
   
74,684
 
Total revenue from contracts with customers
 
$
412,060
  
$
40,044
  
$
34,640
  
$
774
  
$
487,518
 
 
  
Nine months ended December 31, 2023
  
Product
 
Professional
Services
 
Managed
Services
 
Financing
 
Total
Net Sales:
          
    
Contracts with customers
 
$
1,398,668
  
$
113,870
  
$
99,335
  
$
4,899
  
$
1,616,772
 
Financing and other
  
19,913
   
-
   
-
   
34,156
   
54,069
 
Total
 
$
1,418,581
  
$
113,870
  
$
99,335
  
$
39,055
  
$
1,670,841
 
                     
Timing and position as principal or agent:
                    
Transferred at a point in time as principal
 
$
1,262,010
  
$
-
  
$
-
  
$
4,899
  
$
1,266,909
 
Transferred at a point in time as agent
  
136,658
   
-
   
-
   
-
   
136,658
 
Transferred over time as principal
  
-
   
113,870
   
99,335
   
-
   
213,205
 
Total revenue from contracts with customers
 
$
1,398,668
  
$
113,870
  
$
99,335
  
$
4,899
  
$
1,616,772
 
  
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):
 
   Three Months Ended
December 31,		  Nine Months Ended
December 31,
   2024  2023  2024  2023
Customer end market:
            
Telecom, Media & Entertainment
 
$
126,201
  
$
139,551
  
$
352,624
  
$
405,192
 
State and local government and educational institutions
  
71,412
   
60,108
   
261,195
   
264,419
 
Technology
  
71,293
   
83,951
   
235,387
   
268,302
 
Healthcare
  
58,670
   
55,504
   
212,185
   
214,182
 
Financial Services
  
46,217
   
38,816
   
130,701
   
174,391
 
All others
  
119,326
   
116,232
   
329,808
   
305,300
 
Net sales
  
493,119
   
494,162
   
1,521,900
   
1,631,786
 
Less: Revenue from financing and other
  
(13,107
)
  
(7,418
)
  
(24,472
)
  
(19,913
)
Revenue from contracts with customers
 
$
480,012
  
$
486,744
  
$
1,497,428
  
$
1,611,873
 
                 
Type:
                
Networking
 
$
181,367
  
$
209,936
  
$
602,883
  
$
723,760
 
Cloud
  
116,864
   
120,253
   
375,431
   
427,365
 
Security
  
53,919
   
58,822
   
143,133
   
156,504
 
Collaboration
  
8,391
   
13,608
   
47,278
   
53,647
 
Other
  
18,931
   
16,859
   
57,672
   
57,305
 
Total product
  
379,472
   
419,478
   
1,226,397
   
1,418,581
 
                 
Professional services
  
69,497
   
40,044
   
168,676
   
113,870
 
Managed services
  
44,150
   
34,640
   
126,827
   
99,335
 
Net sales
  
493,119
   
494,162
   
1,521,900
   
1,631,786
 
Less: Revenue from financing and other
  
(13,107
)
  
(7,418
)
  
(24,472
)
  
(19,913
)
Revenue from contracts with customers
 
$
480,012
  
$
486,744
  
$
1,497,428
  
$
1,611,873
 
 
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.