| Contract Assets |
5. Contract Assets
During the three months ended June 30, 2026 and 2025, the Company reduced the carrying value of Remanufactured Cores held at customers’ locations by $705,000 and $1,026,000, respectively, for the revaluation of cores that are part of the finished goods on the customers’ shelves to the lower of cost or net realizable value. Contract assets are comprised of the following:
| | | | | | | | | |
| |
|
June 30, 2026
| |
|
March 31, 2026
| |
|
Short-term contract assets
|
| | | |
| | | |
|
Cores expected to be returned by customers
|
| $ | 20,551,000 | |
| $ | 21,294,000 | |
|
Core premiums paid to customers
|
| | 11,920,000 | |
| | 11,187,000 | |
|
Finished goods premiums paid to customers
|
| | 1,621,000 | |
| | 1,429,000 | |
|
Upfront payments to customers
|
| | 965,000 | |
| | 642,000 | |
|
Total short-term contract assets
|
| $ | 35,057,000 | |
| $ | 34,552,000 | |
| |
| | | |
| | | |
|
Long-term contract assets
|
| | | |
| | | |
|
Remanufactured cores held at customers' locations
|
| $ | 301,451,000 | |
| $ | 297,592,000 | |
|
Core premiums paid to customers
|
| | 31,198,000 | |
| | 28,198,000 | |
|
Finished goods premiums paid to customers
|
| | 3,856,000 | |
| | 3,700,000 | |
|
Upfront payments to customers
|
| | 1,737,000 | |
| | 1,731,000 | |
|
Total long-term contract assets
|
| $ | 338,242,000 | |
| $ | 331,221,000 | |
|