Securitized Receivables

12 Months Ended

Mar. 31, 2020

Disclosure of Securitized or Asset-backed Financing Arrangement Assets and Other Financial Assets Managed Together [Abstract]

Securitized Receivables

Securitized Receivables

During the year ended March 31, 2020, the Company sold trade receivables to unaffiliated financial institutions under three accounts receivable securitization facilities. Under the first facility, the Company continuously sells a designated pool of trade receivables to a special purpose entity, which sells 100% of the receivables to an unaffiliated financial institution. 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. As of March 31, 2020, the investment limit of this facility was $125,000 of trade receivables.

For the first facility, the Company incurred facility costs of $1,010 and $930 during the years ended March 31, 2020 and 2019, respectively. The facility requires a minimum level of deferred purchase price be retained by the Company in connection with the sales of the receivables to the unaffiliated financial institution. The Company continues to service, administer, and collect the receivables on behalf of the special purpose entity and receives a servicing fee of 0.5% of serviced receivables per annum. As the Company estimates the expected fee it receives in return for its obligation to service these receivables is at fair value, no servicing assets or liabilities are recognized. Servicing fees are recorded as a reduction of selling, general, and administrative expenses within the statements of consolidated operations.

Under the first facility, the special purpose entity is provided an option to terminate the facility agreement upon the failure of the Company to maintain a minimum shareholder’s equity balance. As of December 31, 2019 and March 31, 2020, the Company did not maintain the minimum shareholder's equity balance, which would have allowed the special purpose entity the option to terminate the facility agreement. The special purpose entity opted not to terminate the facility agreement and acceptance of receivables continued under the facility. The Company and the special purpose entity have executed a waiver and an amendment to the facility agreement with effective dates of December 31, 2019 and March 31, 2020, respectively, which resolved the Company's failure to maintain a minimum shareholders' equity balance.

For the second and third facilities, the Company offers trade receivables for sale to an unaffiliated financial institution, which are then subject to acceptance by the unaffiliated financial institution. Following the sale and transfer of the receivables to the unaffiliated financial institution, the receivables are isolated from the Company and its affiliates, and 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. Under the first and second facilities, the Company does not receive servicing fee from the unaffiliated financial institution and as a result, has established a servicing liability based upon unobservable inputs, primarily discounted cash flow. As of March 31, 2020, the investment limit under the second facility was $125,000 of trade receivables. As of March 31, 2020, the investment limit under the third facility was variable based on qualifying sales.

As servicer of the first and second facilities, the Company may receive funds that are due to the unaffiliated financial institutions which are net settled on the next settlement date. As of March 31, 2020 and 2019, trade receivables, net in the consolidated balance sheets has been reduced by $9,586 and $5,208 as a result of the net settlement, respectively. See Note 26. "Fair Value Measurements" for further information.

The second and third facilities do not contain restrictive covenants.

The following summarizes the Company’s accounts receivable securitization information as of March 31:

	March 31,
	2020		2019
Receivables outstanding in facility as of March 31:	$	135,439	$	210,672
Beneficial interest	$	27,021	$	40,332
Servicing liability	$	43	$	90
Cash proceeds for the years ended March 31:
Cash purchase price	$	523,521	$	672,333
Deferred purchase price	240,994		242,966
Service fees	455		576
Total	$	764,970	$	915,875

As of March 31, 2020 and 2019, accounts receivable sold and outstanding were $135,439 and $210,672, respectively.