| SEGMENT REPORTING |
Our segment information is presented in accordance with a “management approach,” which designates the internal reporting used by the chief operating decision-maker (“CODM”) for deciding how to allocate resources and for assessing performance. Our CODM is our Chief Executive Officer and President. Our CODM conducts our operations through two operating segments, our technology segment and our financing segment. Our technology segment includes sales of information technology products, third-party software, third-party maintenance, advanced professional and managed services and our proprietary software to commercial, state and local governments, and government contractors. Our financing segment consists of the financing of IT equipment, software and related services to commercial, state and local governments, and government contractors. Our CODM uses several measures to allocate resources and assess performance. Our reported measure is earnings before taxes.
Our reportable segment information was as follows (in thousands):
|
|
Year Ended March 31, |
|
| |
|
2021 |
|
|
2020 |
|
|
2019 |
|
| |
|
Technology |
|
|
Financing |
|
|
Total |
|
|
Technology |
|
|
Financing |
|
|
Total |
|
|
Technology |
|
|
Financing |
|
|
Total |
|
Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
$ |
1,305,789 |
|
|
$ |
60,369 |
|
|
$ |
1,366,158 |
|
|
$ |
1,337,022 |
|
|
$ |
58,266 |
|
|
$ |
1,395,288 |
|
|
$ |
1,180,042 |
|
|
$ |
43,153 |
|
|
$ |
1,223,195 |
|
Service |
|
|
202,165 |
|
|
|
- |
|
|
|
202,165 |
|
|
|
193,116 |
|
|
|
- |
|
|
|
193,116 |
|
|
|
149,478 |
|
|
|
- |
|
|
|
149,478 |
|
Net sales |
|
|
1,507,954 |
|
|
|
60,369 |
|
|
|
1,568,323 |
|
|
|
1,530,138 |
|
|
|
58,266 |
|
|
|
1,588,404 |
|
|
|
1,329,520 |
|
|
|
43,153 |
|
|
|
1,372,673 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
|
1,036,627 |
|
|
|
13,050 |
|
|
|
1,049,677 |
|
|
|
1,069,110 |
|
|
|
7,663 |
|
|
|
1,076,773 |
|
|
|
945,037 |
|
|
|
7,427 |
|
|
|
952,464 |
|
Service |
|
|
125,092 |
|
|
|
- |
|
|
|
125,092 |
|
|
|
120,440 |
|
|
|
- |
|
|
|
120,440 |
|
|
|
89,821 |
|
|
|
- |
|
|
|
89,821 |
|
Total cost of sales |
|
|
1,161,719 |
|
|
|
13,050 |
|
|
|
1,174,769 |
|
|
|
1,189,550 |
|
|
|
7,663 |
|
|
|
1,197,213 |
|
|
|
1,034,858 |
|
|
|
7,427 |
|
|
|
1,042,285 |
|
Gross Profit |
|
|
346,235 |
|
|
|
47,319 |
|
|
|
393,554 |
|
|
|
340,588 |
|
|
|
50,603 |
|
|
|
391,191 |
|
|
|
294,662 |
|
|
|
35,726 |
|
|
|
330,388 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative |
|
|
256,210 |
|
|
|
15,053 |
|
|
|
271,263 |
|
|
|
264,123 |
|
|
|
15,059 |
|
|
|
279,182 |
|
|
|
226,112 |
|
|
|
10,970 |
|
|
|
237,082 |
|
Depreciation and amortization |
|
|
13,839 |
|
|
|
112 |
|
|
|
13,951 |
|
|
|
14,016 |
|
|
|
140 |
|
|
|
14,156 |
|
|
|
11,812 |
|
|
|
12 |
|
|
|
11,824 |
|
Interest and financing costs |
|
|
521 |
|
|
|
1,484 |
|
|
|
2,005 |
|
|
|
294 |
|
|
|
2,280 |
|
|
|
2,574 |
|
|
|
- |
|
|
|
1,948 |
|
|
|
1,948 |
|
Operating expenses |
|
|
270,570 |
|
|
|
16,649 |
|
|
|
287,219 |
|
|
|
278,433 |
|
|
|
17,479 |
|
|
|
295,912 |
|
|
|
237,924 |
|
|
|
12,930 |
|
|
|
250,854 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
75,665 |
|
|
|
30,670 |
|
|
|
106,335 |
|
|
|
62,155 |
|
|
|
33,124 |
|
|
|
95,279 |
|
|
|
56,738 |
|
|
|
22,796 |
|
|
|
79,534 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income |
|
|
|
|
|
|
|
|
|
|
571 |
|
|
|
|
|
|
|
|
|
|
|
680 |
|
|
|
|
|
|
|
|
|
|
|
6,696 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before tax |
|
|
|
|
|
|
|
|
|
$ |
106,906 |
|
|
|
|
|
|
|
|
|
|
$ |
95,959 |
|
|
|
|
|
|
|
|
|
|
$ |
86,230 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracts with customers |
|
$ |
1,484,104 |
|
|
$ |
12,369 |
|
|
$ |
1,496,473 |
|
|
$ |
1,514,507 |
|
|
$ |
4,589 |
|
|
$ |
1,519,096 |
|
|
$ |
1,308,405 |
|
|
$ |
3,577 |
|
|
$ |
1,311,982 |
|
Financing and other |
|
|
23,850 |
|
|
|
48,000 |
|
|
|
71,850 |
|
|
|
15,631 |
|
|
|
53,677 |
|
|
|
69,308 |
|
|
|
21,115 |
|
|
|
39,576 |
|
|
|
60,691 |
|
Net Sales |
|
$ |
1,507,954 |
|
|
$ |
60,369 |
|
|
$ |
1,568,323 |
|
|
$ |
1,530,138 |
|
|
$ |
58,266 |
|
|
$ |
1,588,404 |
|
|
$ |
1,329,520 |
|
|
$ |
43,153 |
|
|
$ |
1,372,673 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data - Statement of Cash Flow |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
$ |
14,568 |
|
|
$ |
5,423 |
|
|
$ |
19,991 |
|
|
$ |
14,516 |
|
|
$ |
4,640 |
|
|
$ |
19,156 |
|
|
$ |
12,661 |
|
|
$ |
5,978 |
|
|
$ |
18,639 |
|
Purchases of property, equipment and operating lease equipment |
|
$ |
4,752 |
|
|
$ |
6,761 |
|
|
$ |
11,513 |
|
|
$ |
4,842 |
|
|
$ |
2,167 |
|
|
$ |
7,009 |
|
|
$ |
6,042 |
|
|
$ |
5,587 |
|
|
$ |
11,629 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data - Balance Sheet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
828,576 |
|
|
$ |
248,199 |
|
|
$ |
1,076,775 |
|
|
$ |
709,854 |
|
|
$ |
199,259 |
|
|
$ |
909,113 |
|
|
$ |
607,998 |
|
|
$ |
178,200 |
|
|
$ |
786,198 |
|
Technology Segment Disaggregation of Revenue
We analyze net sales for our technology segment by customer end market and by vendor, as opposed to discrete product and service categories, which are summarized below (in thousands):
|
|
Year Ended March 31, |
|
| |
|
2021 |
|
|
2020 |
|
|
2019 |
|
Customer end market: |
|
|
|
|
|
|
|
|
|
Technology |
|
$ |
251,683 |
|
|
$ |
324,239 |
|
|
$ |
293,362 |
|
Telecom, Media & Entertainment |
|
|
371,913 |
|
|
|
289,958 |
|
|
|
175,260 |
|
Financial Services |
|
|
198,761 |
|
|
|
191,679 |
|
|
|
202,074 |
|
State and local government and educational institutions |
|
|
245,919 |
|
|
|
243,092 |
|
|
|
223,330 |
|
Healthcare |
|
|
200,067 |
|
|
|
233,894 |
|
|
|
193,754 |
|
All others |
|
|
239,611 |
|
|
|
247,276 |
|
|
|
241,740 |
|
Net sales |
|
|
1,507,954 |
|
|
|
1,530,138 |
|
|
|
1,329,520 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Revenue from financing and other |
|
|
(23,850 |
) |
|
|
(15,631 |
) |
|
|
(21,115 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from contracts with customers |
|
$ |
1,484,104 |
|
|
$ |
1,514,507 |
|
|
$ |
1,308,405 |
|
|
|
Year Ended March 31, |
|
| |
|
2021 |
|
|
2020 |
|
|
2019 |
|
Vendor |
|
|
|
|
|
|
|
|
|
Cisco Systems |
|
$ |
537,041 |
|
|
$ |
607,719 |
|
|
$ |
556,182 |
|
NetApp |
|
|
58,020 |
|
|
|
59,812 |
|
|
|
48,858 |
|
HP Inc. & HPE |
|
|
59,838 |
|
|
|
71,802 |
|
|
|
74,348 |
|
Dell / EMC |
|
|
107,336 |
|
|
|
84,939 |
|
|
|
61,284 |
|
Arista Networks |
|
|
51,789 |
|
|
|
75,281 |
|
|
|
57,850 |
|
Juniper Networks |
|
|
91,946 |
|
|
|
68,339 |
|
|
|
48,943 |
|
All others |
|
|
601,984 |
|
|
|
562,246 |
|
|
|
482,055 |
|
Net sales |
|
|
1,507,954 |
|
|
|
1,530,138 |
|
|
|
1,329,520 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Revenue from financing and other |
|
|
(23,850 |
) |
|
|
(15,631 |
) |
|
|
(21,115 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from contracts with customers |
|
$ |
1,484,104 |
|
|
$ |
1,514,507 |
|
|
$ |
1,308,405 |
|
Financing Segment Disaggregation of Revenue
We analyze our revenues within our financing segment based on the nature of the arrangement, and our revenues from contracts with customers consist of proceeds from the sale of off-lease equipment.
Geographic information
The geographic information for the years ended March 31, 2021, 2020 and 2019 was as follows (in thousands):
|
|
Year Ended March 31, |
|
| |
|
2021 |
|
|
2020 |
|
|
2019 |
|
| |
|
|
|
|
|
|
|
|
|
Net sales: |
|
|
|
|
|
|
|
|
|
US |
|
$ |
1,476,466 |
|
|
$ |
1,508,329 |
|
|
$ |
1,284,482 |
|
Non US |
|
|
91,857 |
|
|
|
80,075 |
|
|
|
88,191 |
|
Total |
|
$ |
1,568,323 |
|
|
$ |
1,588,404 |
|
|
$ |
1,372,673 |
|
|
|
March 31, |
|
| |
|
2021 |
|
|
2020 |
|
Long-lived tangible assets: |
|
|
|
|
|
|
US |
|
$ |
33,504 |
|
|
$ |
38,297 |
|
Non US |
|
|
931 |
|
|
|
1,233 |
|
Total |
|
$ |
34,435 |
|
|
$ |
39,530 |
|
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.
Sales to Verizon Communications Inc. represented 19% and 15% of net sales for the year ended March 31, 2021 and March 31, 2020, all of which related to our technology segment. Sales to no one customer exceeded 10% of net sales for the year ended March 31, 2019.
|