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.