SEGMENT REPORTING

12 Months Ended

Mar. 31, 2025

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 organizational structure is based on how our chief operating decision maker (“CODM”) allocates resources, manages operations, and evaluates performance. Our CODM is our Chief Executive Officer.

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. 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 consists of the financing of IT equipment, software, and related services to commercial enterprises, state and local governments, and government contractors.

Our CODM measures the performance of the segments within our technology business based on gross profit and measures 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 CODM. Our CODM uses quarterly financial results and forecasts to manage operations. Our CODM also uses our financial results and forecasts in our annual budgeting process.

The following table provides reportable segment information (in thousands):

	Year Ended March 31,
		2025		2024		2023
Net sales
Product	$	1,608,768	$	1,883,809	$	1,750,802
Professional services		229,030		154,549		151,785
Managed services		171,347		137,528		112,658
Financing		59,644		49,416		52,473
Total		2,068,789		2,225,302		2,067,718
Cost of sales
Product		1,235,211		1,486,191		1,370,061
Professional services		138,513		86,355		90,191
Managed services		120,040		94,861		80,503
Financing		5,904		7,102		9,439
Total		1,499,668		1,674,509		1,550,194
Gross profit
Product		373,557		397,618		380,741
Professional services		90,517		68,194		61,594
Managed services		51,307		42,667		32,155
Financing		53,740		42,314		43,034
Total		569,121		550,793		517,524
Selling, general, and administrative
Technology business		383,335		353,540		317,885
Financing		16,409		14,194		15,635
Total		399,744		367,734		333,520
Depreciation and amortization
Technology business		25,753		20,951		13,598
Financing		-		74		111
Total		25,753		21,025		13,709
Interest and financing costs
Technology business		-		1,428		2,897
Financing		2,211		2,349		1,236
Total		2,211		3,777		4,133
Operating income
Technology business		106,293		132,560		140,110
Financing		35,120		25,697		26,052
Total		141,413		158,257		166,162
Other income (expense), net		7,426		2,836		(3,188	)
Earnings before tax	$	148,839	$	161,093	$	162,974
Selected financial data - statement of cash flow
Purchases of property, equipment, and operating lease equipment:
Technology business	$	5,216	$	7,454	$	7,693
Financing		1,387		1,049		1,687
Total	$	6,603	$	8,503	$	9,380

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, 2025
	Product		Professional Services		Managed Services		Financing		Total
Net Sales:
Contracts with customers	$	1,575,097	$	229,030	$	171,347	$	5,560	$	1,981,034
Financing and other		33671		-		-		54,084		87,755
Total	$	1,608,768	$	229,030	$	171,347	$	59,644	$	2,068,789
Timing and position as principal or agent:
Transferred at a point in time as principal	$	1,390,811	$	-	$	-	$	5,560	$	1,396,371
Transferred at a point in time as agent		184,286		-		-		-		184,286
Transferred over time as principal		-		229,030		171,347		-		400,377
Total revenue from contracts with customers	$	1,575,097	$	229,030	$	171,347	$	5,560	$	1,981,034

	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

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,
	2025			2024			2023
Customer end market:
Telecom, media & entertainment	$	453,892		$	547,525		$	532,921
SLED		333,371			329,617			290,624
Technology		300,465			379,720			393,594
Healthcare		286,474			278,893			274,936
Financial services		174,798			243,630			156,257
All others		460,145			396,501			366,913
Net sales		2,009,145			2,175,886			2,015,245
Less: revenue from financing and other		(33,671	)		(21,578	)		(22,677	)
Total revenue from contracts with customers	$	1,975,474			2,154,308			1,992,568
Type:
Product
Networking	$	781,703		$	1,005,679		$	803,678
Cloud		509,774			546,341			587,097
Security		191,872			193,956			214,459
Collaboration		55,483			65,714			57,472
Other		69,936			72,119			88,096
Total product		1,608,768			1,883,809			1,750,802
Professional services		229,030			154,549			151,785
Managed services		171,347			137,528			112,658
Net sales		2,009,145			2,175,886			2,015,245
Less: revenue from financing and other		(33,671	)		(21,578	)		(22,677	)
Total revenue from contracts with customers	$	1,975,474		$	2,154,308		$	1,992,568

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, 2025, 2024, and 2023 was as follows (in thousands):

	Year Ended March 31,
	2025		2024		2023
Net sales:
US	$	1,983,403	$	2,127,695	$	1,953,465
Non-US		85,386		97,607		114,253
Total	$	2,068,789	$	2,225,302	$	2,067,718

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,
	2025		2024
Long-lived tangible assets:
US	$	17,162	$	16,258
Non-US		321		582
Total	$	17,483	$	16,840

Sales to Verizon Communications Inc. represented 16%, 19% and 22% of net sales for the years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively, all of which related to our technology business segments.