Segment Reporting and Related Disclosures

6 Months Ended

Nov. 30, 2014

Segment Reporting [Abstract]

Segment Reporting and Related Disclosures

Segment Reporting and Related Disclosures

Accounting guidance establishes reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. In order to determine our operating segments, we considered the following: an operating segment is a component of an enterprise (i) that engages in business activities from which it may earn revenues and incur expenses, (ii) whose operating results are regularly reviewed by the enterprise’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and (iii) for which discrete financial information is available. In accordance with this guidance, we have identified two operating segments in our business: our T&M and DP business.

Although we have separate operating segments for T&M and DP equipment, these two segments are aggregated into a single reportable segment because they have similar economic characteristics and qualitative factors. The T&M and DP segments have similar long-term average gross margins, and both rent, lease and sell electronic equipment to large corporations, purchase directly from major manufacturers, configure and calibrate the equipment, and ship directly to customers. Additionally, DP segment revenues are less than 10% of total company revenues, and are not considered material.

Our equipment pool, based on acquisition cost, consisted of $421,539 of T&M equipment and $38,118 of DP equipment at November 30, 2014 and $421,128 of T&M equipment and $37,911 of DP equipment at May 31, 2014.

Revenues for these operating segments were as follows for the three months ended November 30, 2014 and 2013:

	T&M		DP		Total
2014
Rentals and leases	$	28,789	$	4,680	$	33,469
Sales of equipment and other revenues	25,758		476		26,234
	$	54,547	$	5,156	$	59,703
2013
Rentals and leases	$	31,060	$	4,145	$	35,205
Sales of equipment and other revenues	22,263		408		22,671
	$	53,323	$	4,553	$	57,876

Revenues for these operating segments were as follows for the six months ended November 30, 2014 and 2013:

	T&M		DP		Total
2014
Rentals and leases	$	58,038	$	9,320	$	67,358
Sales of equipment and other revenues	53,233		983		54,216
	$	111,271	$	10,303	$	121,574
2013
Rentals and leases	$	61,880	$	8,982	$	70,862
Sales of equipment and other revenues	46,113		1,069		47,182
	$	107,993	$	10,051	$	118,044

No single customer accounted for more than 10% of total revenues during the six months ended November 30, 2014 and 2013.

Selected country information is presented below:

	Three Months Ended November 30,				Six Months Ended November 30,
	2014		2013		2014		2013
Revenues:1
U.S.	$	50,245	$	48,911	$	101,397	$	99,137
Other 2	9,458		8,965		20,177		18,907
Total	$	59,703	$	57,876	$	121,574	$	118,044

	As of
	November 30, 2014		May 31, 2014
Net Long-Lived Assets:3
U.S.	$	186,155	$	188,343
Other 2	44,588		46,667
Total	$	230,743	$	235,010

¹    Revenues by country are based on the shipping destination.

²    Other consists of countries other than the U.S. Each foreign country individually accounts for less than 10% of the total revenues and long-lived assets.

³    Net long-lived assets include rental and lease equipment and other property, net of accumulated depreciation and amortization.