FINANCING RECEIVABLES

12 Months Ended

Mar. 31, 2014

5. FINANCING RECEIVABLES

In accordance with ASU No. 2010-20 “Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses,” the Company allows deferred payment terms that exceed one year for customers purchasing licenses (perpetual or time-based) for our software products and the related maintenance services (“multi-year deferred payment arrangements”). A financing receivable exists when the license transfers to the customer or the related maintenance service has been provided (i.e., revenue recognition has occurred) prior to the due date of the related receivable. Our products financing receivables primarily consist of the perpetual license portion of outstanding multi-year deferred payment arrangements.

The following is an aged analysis of our products and loans financing receivables based on invoice dates as of March 31, 2014 and March 31, 2013 (in thousands):

	As of March 31, 2014
					Greater than
	0-29 days past		30-90 days past		90 days				Total financing
	invoice date		invoice date		past invoice date		Unbilled		receivables
Pass rating
Software products	$	2,684	$	628	$	26	$	33,807	$	37,145

	As of March 31, 2013
					Greater than
	0-29 days past		30-90 days past		90 days				Total financing
	invoice date		invoice date		past invoice date		Unbilled		receivables
Pass rating
Software products	$	3,311	$	679	$	1,324	$	42,659	$	47,973
Loans								3,771		3,771
Total		3,311		679		1,324		46,430		51,744

Watch rating
Software products						179				179

Total financing receivables	$	3,311	$	679	$	1,503	$	46,430	$	51,923

The Company performs a credit review of its financing receivables each reporting period to determine if an allowance for credit loss is required. As of March 31, 2014, the Company had no financing receivables with a “watch” rating and no allowance for credit losses on our financing receivables. As of March 31, 2013, the allowance for credit losses on our financing receivables was $179,000. See the “concentration of credit risk” section within note 1 for additional information on our credit risk evaluation process and changes to the total accounts receivable allowance for doubtful accounts balance.