Transfers and Servicing

3 Months Ended

Jun. 30, 2011

Transfers and Servicing

Transfers and Servicing of Financial Assets [Text Block]

16.  SALE OF RECEIVABLES

The Company continuously sells a designated pool of trade receivables to special purpose entity, which in turn sells 100% of the receivables to an unaffiliated financial institution under an accounts receivable securitization program. This program allows the Company to receive a cash payment and a deferred purchase price receivable for sold receivables. Following the sale and transfer of the receivables to the special purpose entity, the receivables are isolated from the Company and its affiliates, and upon the sale and transfer of the receivables from the special purpose entity to the unaffiliated financial institutions effective control of the receivables is passed to the unaffiliated financial institution, which has all rights, including the right to pledge or sell the receivables. The investment limit with this financial institution is $125,000 and requires a minimum level of deferred purchase price to be retained by the Company in connection with the sales.

All of the receivables sold to the unaffiliated financial institution for cash are removed from the Condensed Consolidated Balance Sheet and the net cash proceeds received by the Company are included as cash provided by operating activities in the Condensed Statement of Cash Flows. A portion of the purchase price for the receivables is paid by the unaffiliated financial institution in cash and the balance is a deferred purchase price receivable, which is paid to the special purpose entity as payments on the receivables are collected from account debtors. The deferred purchase price receivable represents a continuing involvement and a beneficial interest in the transferred financial assets and is recognized at fair value as part of the sale transaction. The deferred purchase price receivables are included in accounts receivable in the Condensed Consolidated Balance Sheets and are valued using unobservable inputs (i.e., level three inputs), primarily discounted cash flow, and due to its high credit quality and short maturity their fair value approximated book value.

The Company continues to service, administer and collect the receivables on behalf of the special purpose entity and receives a servicing fee of .5% of serviced receivables per annum. Servicing fees recognized during the three months ended June 30, 2011 and 2010 were not material and are recorded as a reduction of selling, administrative and general expenses within the Condensed Consolidated Statement of Operations. As the Company estimates the fee it receives in return for its obligation to service these receivables is at fair value, no servicing assets and liabilities are recognized.

The difference between the carrying amount of the receivables sold under this program and the sum of the cash and fair value of the other assets received at the time of transfer is recognized as a loss on sale of the related receivables and recorded in Other Income in the Condensed Consolidated Statements of Operations

The following table summarizes the Company’s accounts receivable securitization information as of the dates shown:

	June 30		March 31
	2011	2010	2011
Receivables outstanding in facility:
As of June 30	$   82,912	$  112,142	$  53,156
Beneficial interest as of June 30	$   13,972	$    13,188	$  15,797
Impact on beneficial interest resulting from changes in discount rate:
10%	$    35	$    46
20%	$    71	$    92
Criteria to determine beneficial interest as of June 30:
Weighted average life in days	61	57	67
Discount rate (inclusive of 0.5% servicing fee)	2.43%	2.62%	2.46%
Unused balance fee	0.40%	0.40%	0.40%
Cash proceeds for the three months ended June 30:
Cash purchase price	$   99,977	$    78,368
Deferred purchase price	37,494	27,829
Service fees	85	120
Total	$ 137,556	$  106,317
Loss on sale of receivables
Three months ended June 30	$        644	$         230