FINANCING RECEIVABLES AND OPERATING LEASES (Tables)

6 Months Ended

Sep. 30, 2019

FINANCING RECEIVABLES AND OPERATING LEASES [Abstract]

The following table provides the profit recognized for sales-type leases at their commencement date for the three and six months ended September 30, 2019 (in thousands):

	Three months ended September 30, 2019		Six months ended September 30, 2019
Net sales	$	3,133	$	7,987
Cost of sales		2,702		6,652
Gross Profit	$	431	$	1,335

The following table provides interest income in aggregate on our sales-type leases and lease income on our operating leases for the three and six months ended September 30, 2019 (in thousands):

	Three months ended September 30, 2019		Six months ended September 30, 2019
Interest income on sales-type leases	$	1,495	$	3,590
Lease income on operating leases	$	5,059	$	10,418

Notes Receivable Net and Investments in Leases

Our financing receivables-net consist of the following (in thousands):

September 30, 2019	Notes Receivables			Lease-Related Receivables			Total Financing Receivables

Minimum payments	$	78,483		$	87,989		$	166,472
Estimated unguaranteed residual value (1)		-			20,640			20,640
Initial direct costs, net of amortization (2)		644			284			928
Unearned income		-			(11,327	)		(11,327	)
Reserve for credit losses (3)		(520	)		(500	)		(1,020	)
Total, net	$	78,607		$	97,086		$	175,693
Reported as:
Current	$	59,603		$	49,043		$	108,646
Long-term		19,004			48,043			67,047
Total, net	$	78,607		$	97,086		$	175,693

(1)

Includes estimated unguaranteed residual values of $14,211 thousand for sales type leases, which have been sold and accounted for as sales.

(2)

Initial direct costs are shown net of amortization of $393 thousand.

(3)

For details on reserve for credit losses, refer to Note 7, “Reserves for Credit Losses.”

March 31, 2019	Notes Receivables			Lease-Related Receivables			Total Financing Receivables

Minimum payments	$	40,563		$	64,201		$	104,764
Estimated unguaranteed residual value (1)		-			14,639			14,639
Initial direct costs, net of amortization (2)		377			332			709
Unearned income		-			(7,671	)		(7,671	)
Reserve for credit losses (3)		(505	)		(530	)		(1,035	)
Total, net	$	40,435		$	70,971		$	111,406
Reported as:
Current	$	30,852		$	32,914		$	63,766
Long-term		9,583			38,057			47,640
Total, net	$	40,435		$	70,971		$	111,406

(1)

Includes $8,996 thousand for the estimated residual values of sales type leases and direct financing leases for which we sold the financing assets.

(2)

Initial direct costs are shown net of amortization of $275 thousand.

(3)

For details on reserve for credit losses, refer to Note 7, “Reserves for Credit Losses.”

Future Scheduled Minimum Lease Payments

Future scheduled minimum lease payments for investments in sales-type leases as of September 30, 2019 are as follows (in thousands):

Remainder of Year ending March 31, 2020	$	43,732
Year ending March 31, 2021		22,787
Year ending March 31, 2022		14,038
Year ending March 31, 2023		4,979
Year ending March 31, 2024 and thereafter		2,453
Total	$	87,989

Investment in Operating Lease Equipment - Net

Operating leases—net represents leases that do not qualify as sales-type leases. The components of the operating leases—net are as follows (in thousands):

	September 30, 2019			March 31, 2019

Cost of equipment under operating leases	$	23,927		$	21,532
Accumulated depreciation		(11,462	)		(10,139	)
Investment in operating lease equipment—net (1)	$	12,465		$	11,393

(1)

These totals include estimated unguaranteed residual values of $3,006 thousand and $2,906 thousand as of September 30, 2019 and March 31, 2019, respectively.

Future Minimum Rental Payments for Operating Leases

Future scheduled minimum lease rental payments as of September 30, 2019 are as follows (in thousands):

Remainder of Year ending March 31, 2020	$	2,507
Year ending March 31, 2021		3,815
Year ending March 31, 2022		2,555
Year ending March 31, 2023		1,455
Year ending March 31, 2024 and thereafter		443
Total	$	10,775