XML 22 R13.htm IDEA: XBRL DOCUMENT v3.22.2
ALLOWANCE FOR CREDIT LOSSES
 3 Months Ended
Jun. 30, 2022
ALLOWANCE FOR CREDIT LOSSES [Abstract]  
ALLOWANCE FOR CREDIT LOSSES
6.
ALLOWANCE FOR CREDIT LOSSES

The following table provides the activity in our allowance for credit losses for the three months ended June 30, 2022, and 2021 (in thousands):

   
Accounts
Receivable
    
Notes
Receivable
    
Lease
Receivables
    
Total
  
Balance April 1, 2022
  
$
2,411
    
$
708
    
$
681
    
$
3,800
  
Provision for credit losses
    
382
      
84
      
232
   
698
  
Write-offs and other
    
(65
)
    
-
   
-
   
(65
)
Balance June 30, 2022
  
$
2,728
    
$
792
    
$
913
    
$
4,433
  

   
Accounts
Receivable
    
Notes
Receivable
    
Lease
Receivables
    
Total
  
Balance April 1, 2021
  
$
2,064
    
$
1,212
    
$
1,171
    
$
4,447
  
Provision for credit losses
    
(40
)
    
77
      
(298
)
    
(261
)
Write-offs and other
    
(22
)
    
-
      
-
      
(22
)
Balance June 30, 2021
  
$
2,002
    
$
1,289
    
$
873
    
$
4,164
  

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 generally in the range of 2% to 10%.

•
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 generally in the range of 10% 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, 2022 (in thousands):

   
Amortized cost basis by origination year ending March 31,
                    
 
2023
    
2022
    
2021
    
2020
    
2019
    
2018
    
Total
    
Non-recourse
debt (2)
    
Net credit
exposure
  
Notes receivable:
                                                      
High CQR
  
$
22,785
    
$
18,879
    
$
24,314
    
$
969
    
$
158
    
$
3
    
$
67,108
    
$
(24,331
)
  
$
42,777
  
Average CQR
    
7,471
      
6,784
      
2,671
      
746
      
52
      
-
      
17,724
      
(8,280
)
    
9,444
  
Low CQR
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
  
$
30,256
    
$
25,663
    
$
26,985
    
$
1,715
    
$
210
    
$
3
    
$
84,832
    
$
(32,611
)
  
$
52,221
  
                                                                         
Lease receivables:
                                                                        
High CQR
  
$
14,828
    
$
9,539
    
$
4,209
    
$
1,809
    
$
731
    
$
44
    
$
31,160
    
$
(3,531
)
  
$
27,629
  
Average CQR
    
6,654
      
9,029
      
2,334
      
473
      
39
      
44
      
18,573
      
(188
)
    
18,385
  
Low CQR
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
  
$
21,482
    
$
18,568
    
$
6,543
    
$
2,282
    
$
770
    
$
88
    
$
49,733
    
$
(3,719
)
  
$
46,014
  
                                                                         
Total amortized cost (1)
  
$
51,738
    
$
44,231
    
$
33,528
    
$
3,997
    
$
980
    
$
91
    
$
134,565
    
$
(36,330
)
  
$
98,235
  

(1)
Unguaranteed residual values of $5,607 thousand that we retained after selling the related lease receivable is 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, 2022 (in thousands):

   
Amortized cost basis by origination year ending March 31,
                    
 
2022
    
2021
    
2020
    
2019
    
2018
    
2017
    
Total
    
Transfers
(2)
    
Net credit
exposure
  
                                                       
Notes receivable:
                                                      
High CQR
  
$
35,264
    
$
28,005
    
$
1,297
    
$
345
    
$
2
    
$
4
    
$
64,917
    
$
(30,274
)
   $
34,643  
Average CQR
    
8,922
      
2,976
      
758
      
213
      
3
      
-
      
12,872
      
(4,763
)
     8,109  
Low CQR
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
       -  
Total
  
$
44,186
    
$
30,981
    
$
2,055
    
$
558
    
$
5
    
$
4
    
$
77,789
    
$
(35,037
)
   $
42,752  
                                                                         
Lease receivables:
                                                                        
High CQR
  
$
14,549
    
$
5,002
    
$
2,499
    
$
902
    
$
50
    
$
11
    
$
23,013
    
$
(3,385
)
   $
19,628  
Average CQR
    
10,936
      
3,092
      
741
      
47
      
72
      
-
      
14,888
      
(347
)
     14,541  
Low CQR
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
       -  
Total
  
$
25,485
    
$
8,094
    
$
3,240
    
$
949
    
$
122
    
$
11
    
$
37,901
    
$
(3,732
)
   $
34,169  
                                                                         
Total amortized cost (1)
  
$
69,671
    
$
39,075
    
$
5,295
    
$
1,507
    
$
127
    
$
15
    
$
115,690
    
$
(38,769
)
   $
76,921  

(1)
Unguaranteed residual values of $6,424 thousand that we retained after selling the related lease receivable is excluded from amortized cost.
 
(2)
Transfers consist of receivables that have been transferred to third-party financial institutions on a non-recourse basis and receivables that are in the process of being transferred to third-party financial institutions.

The following table provides an aging analysis of our financing receivables as of June 30, 2022 (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
  
$
268
    
$
425
    
$
97
    
$
790
    
$
5,623
    
$
6,413
    
$
78,419
    
$
84,832
  
Lease receivables
    
240
      
154
      
551
      
945
      
905
      
1,850
      
47,883
      
49,733
  
Total
  
$
508
    
$
579
    
$
648
    
$
1,735
    
$
6,528
    
$
8,263
    
$
126,302
    
$
134,565
  

The following table provides an aging analysis of our financing receivables as of March 31, 2022 (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
  
$
187
    
$
37
    
$
23
    
$
247
    
$
5,307
    
$
5,554
    
$
72,235
    
$
77,789
  
Lease receivables
    
115
      
325
      
430
      
870
      
639
      
1,509
      
36,392
      
37,901
  
Total
  
$
302
    
$
362
    
$
453
    
$
1,117
    
$
5,946
    
$
7,063
    
$
108,627
    
$
115,690
  

Our financial assets on nonaccrual status were not significant as of June 30, 2022, and March 31, 2022.