AMERCO /NV/, 10-K filed on 27 May 20
v3.20.1
Document and Entity Information - USD ($)
12 Months Ended
Mar. 31, 2020
May 22, 2020
Sep. 30, 2019
Document and Entity Information [Abstract]      
Entity Registrant Name AMERCO    
Entity Central Index Key 0000004457    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Current Fiscal Year End Date --03-31    
Entity Filer Category Large Accelerated Filer    
Entity Well-known Seasoned Issuer Yes    
Entity Public Float     $ 3,494,102,743
Document Fiscal Year Focus 2020    
Document Type 10-K    
Document Fiscal Period Focus FY    
Document Period End Date Mar. 31, 2020    
Amendment Flag false    
Entity Common Stock, Shares Outstanding   19,607,788  
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity File Number 001-11255    
Entity Tax Identification Number 88-0106815    
Entity Address Address Line 1 5555 Kietzke Lane    
Entity Address Address Line 2 Ste. 100    
Entity Address City Or Town Reno    
Entity Address State Or Province NV    
Entity Address Postal Zip Code 89511    
City Area Code 775    
Local Phone Number 688-6300    
Security 12b Title Common stock, $0.25 par value    
Trading Symbol UHAL    
Security Exchange Name NASDAQ    
Entity Interactive Data Current Yes    
Entity Incorporation State Country Code NV    
Document Annual Report true    
Document Transition Report false    
v3.20.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2020
Mar. 31, 2019
ASSETS:    
Cash and cash equivalents $ 494,352 $ 673,701
Reinsurance recoverables and trade receivables, net 186,672 224,785
Inventories, net 101,083 103,504
Prepaid expenses 562,904 174,100
Investments, fixed maturities and marketable equities 2,492,738 2,235,397
Investments, other 360,373 300,736
Deferred policy acquisition costs, net 103,118 136,276
Other assets 71,956 78,354
Right of use assets, financing, net 1,080,353 0
Right of use assets, operating 106,631 0
Related party assets 34,784 30,889
Subtotal assets 5,594,964 3,957,742
Property, plant and equipment, at cost:    
Land 1,032,945 976,454
Buildings and improvements 4,663,461 4,003,726
Furniture and equipment 752,363 689,780
Property, plant and equipment (gross) 10,556,222 11,022,027
Less: Accumulated depreciation (2,713,162) (3,088,056)
Total property, plant and equipment 7,843,060 7,933,971
Total assets 13,438,024 11,891,713
Liabilities:    
Accounts payable and accrued expenses 554,353 556,873
Notes, loans and leases payable 4,621,291 4,163,323
Operating lease liabilities 106,443 0
Policy benefits and losses, claims and loss expenses payable 997,647 1,011,183
Liabilities from investment contracts 1,802,217 1,666,742
Other policyholders' funds and liabilities 10,190 15,047
Deferred income 31,620 35,186
Deferred income taxes, net 1,093,543 750,970
Total liabilities 9,217,304 8,199,324
Commitments and contingencies (notes 9, 16, 17 and 18)
Stockholders' equity:    
Additional paid-in capital 453,819 453,326
Accumulated other comprehensive loss 34,652 (66,698)
Retained earnings 4,399,402 3,976,962
Unearned employee stock ownership plan shares 0 (4,048)
Total stockholders' equity 4,220,720 3,692,389
Total liabilities and stockholders' equity 13,438,024 11,891,713
Series A Preferred Stock [Member]    
Stockholders' equity:    
Preferred stock, value, issued 0 0
Series B Preferred Stock [Member]    
Stockholders' equity:    
Preferred stock, value, issued 0 0
Series A Common Stock [Member]    
Stockholders' equity:    
Common stock, value, issued 0 0
Amerco Common Stock [Member]    
Stockholders' equity:    
Common stock, value, issued 10,497 10,497
Common Stock in Treasury [Member]    
Stockholders' equity:    
Treasury stock, value (525,653) (525,653)
Preferred Stock in Treasury [Member]    
Stockholders' equity:    
Treasury stock, value (151,997) (151,997)
Rental Trailers and Other Rental Equipment [Member]    
Property, plant and equipment, at cost:    
Property subject to or available for operating lease, gross 511,520 590,039
Rental Trucks [Member]    
Property, plant and equipment, at cost:    
Property subject to or available for operating lease, gross $ 3,595,933 $ 4,762,028
v3.20.1
Condensed Consolidated Balance Sheets Parenthetical
Mar. 31, 2020
$ / shares
shares
Series Preferred Stock With or Without Par Value Authorized [Member]  
Preferred stock:  
Preferred stock, shares authorized 50,000,000
Series A Preferred Stock [Member]  
Preferred stock:  
Preferred stock, shares authorized 6,100,000
Preferred stock, shares issued 6,100,000
Series B Preferred Stock [Member]  
Preferred stock:  
Preferred stock, shares authorized 100,000
Series Common Stock With or Without Par Value Authorized [Member]  
Common stock:  
Common stock, shares authorized 250,000,000
Serial Common Stock [Member]  
Common stock:  
Common stock, shares authorized 10,000,000
Common stock, par or stated value per share | $ / shares $ 0.25
Common Stock [Member]  
Common stock:  
Common stock, shares authorized 250,000,000
Common stock, par or stated value per share | $ / shares $ 0.25
Amerco Common Stock [Member]  
Common stock:  
Common stock, shares authorized 250,000,000
Common stock, shares, issued 41,985,700
Common stock, shares, outstanding 19,607,788
Common stock, par or stated value per share | $ / shares $ 0.25
Common Stock in Treasury [Member]  
Treasury stock:  
Treasury stock, shares 22,377,912
Preferred Stock in Treasury [Member]  
Treasury stock:  
Treasury stock, shares 6,100,000
v3.20.1
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
12 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2018
Revenues:      
Self-moving equipment rentals $ 2,692,413 $ 2,653,497 $ 2,479,742
Self-storage revenues 418,741 367,276 323,903
Self-moving and self-storage products and service sales 265,091 264,146 261,557
Property management fees 30,406 29,148 29,602
Life insurance premiums 127,976 63,488 154,703
Property and casualty insurance premiums 66,053 60,853 57,100
Net investment and interest income 137,829 110,934 110,473
Other revenue 240,359 219,365 184,034
Total revenues 3,978,868 3,768,707 3,601,114
Costs and expenses:      
Operating expenses 2,117,148 1,981,180 1,807,056
Commission expenses 288,332 288,408 276,705
Cost of sales 164,018 162,142 160,489
Benefits and losses 174,836 100,277 185,311
Amortization of deferred policy acquisition costs 31,219 28,556 24,514
Lease expense 26,882 33,158 33,960
Depreciation, net of (gains) losses on disposals 637,063 554,043 543,247
Net gains on disposal of real estate (758) (44) (195,414)
Total costs and expenses 3,438,740 3,147,720 2,835,868
Earnings from operations 540,128 620,987 765,246
Pretax earnings 378,124 477,529 637,613
Earnings available to common shareholders $ 442,048 $ 370,857 $ 790,583
Basic and diluted earnings per common share $ 22.55 $ 18.93 $ 40.36
Weighted average common shares outstanding: basic and diluted 19,603,708 19,592,048 19,588,889
v3.20.1
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
12 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2018
Comprehensive income (loss) (pretax):      
Net earnings $ 378,124 $ 477,529 $ 637,613
Comprehensive income (loss) (net of tax):      
Net earnings 442,048 370,857 790,583
Other comprehensive income (loss):      
Foreign currency translation (pretax) 9,377 (1,759) 14,652
Foreign currency translation (tax effect) 0 0 0
Foreign currency translation (net of tax) 9,377 (1,759) 14,652
Unrealized gain (loss) on investments (pretax) 124,566 (76,124) 30,929
Unrealized gain (loss) on investments (tax effect) (26,623) 16,356 (10,825)
Unrealized gain (loss) on investments (net of tax) 97,943   20,104
Change in fair value of cash flow hedges (pretax) (8,352) 598 4,445
Change in fair value of cash flow hedges (tax effect) 2,051 (147) (1,363)
Change in fair value of cash flow hedges (net of tax)     3,082
Amounts reclassifed into earnings on hedging (3) 35 0
Amounts reclassified into earnings on hedging, tax     0
Amounts reclassified into earnings on hedging, net (401) 789 3,893
Postretirement benefit obligation gain (loss) (pretax) 441 (1,359) 288
Postretirement benefit obligation gain (loss) (tax effect) (108) 334 (253)
Postretirement benefit obligation gain (loss) (net of tax) 333 (1,025) 35
Total other comprehensive income loss 101,350 (62,075) 37,873
Total comprehensive income, net $ 543,398 $ 308,782 $ 828,456
v3.20.1
Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Retained Earnings [Member]
Less: Treasury Common Stock [Member]
Less: Treasury Preferred Stock [Member]
Less: Unearned Employee Stock Ownership Plan Shares [Member]
Balance at Mar. 31, 2017 $ 2,619,744 $ 10,497 $ 452,172 $ (51,236) $ 2,892,893 $ (525,653) $ (151,997) $ (6,932)
Consolidated statement of change in equity                
Adjustment for adoption of ASU 2018-02 0 0 0 8,740 (8,740) 0 0 0
Increase in market value of released ESOP shares 574 0 574 0 0 0 0 0
Release of unearned ESOP Shares 10,749 0 0 0 0 0 0 10,749
Purchase of ESOP shares (11,640) 0 0 0 0 0 0 (11,640)
Foreign currency translation 14,652 0 0 14,652 0 0 0 0
Unrealized net gain (loss) on investments, net of tax 20,104 0 0 20,104 0 0 0 0
Fair market value of cash flow hedges, net of tax 3,082 0 0 3,082 0 0 0 0
Adjustment to postretirement benefit obligation 35 0 0 35 0 0 0 0
Net earnings 790,583 0 0 0 790,583 0 0 0
Common stock dividends (39,175) 0 0 0 (39,175) 0 0 0
Net activity 788,964 0 574 46,613 742,668 0 0 (891)
Balance at Mar. 31, 2018 3,408,708 10,497 452,746 (4,623) 3,635,561 (525,653) (151,997) (7,823)
Consolidated statement of change in equity                
Adjustment for adoption of ASU 2016-01 0 0 0 (9,724) 9,724 0 0 0
Increase in market value of released ESOP shares 580 0 580 0 0 0 0 0
Release of unearned ESOP Shares 9,392 0 0 0 0 0 0 9,392
Purchase of ESOP shares   0 0 0 0 0 0 (5,617)
Foreign currency translation (1,759) 0 0 (1,759) 0 0 0 0
Unrealized net gain (loss) on investments, net of tax   0 0 (50,044) 0 0 0 0
Fair market value of cash flow hedges, net of tax   0 0 477 0 0 0 0
Adjustment to postretirement benefit obligation (1,025) 0 0 (1,025) 0 0 0 0
Net earnings 370,857 0 0 0 370,857 0 0 0
Common stock dividends (39,180) 0 0 0 (39,180) 0 0 0
Net activity 283,681 0 580 (62,075) 341,401 0 0 3,775
Balance at Mar. 31, 2019 3,692,389 10,497 453,326 (66,698) 3,976,962 (525,653) (151,997) (4,048)
Consolidated statement of change in equity                
Adjustment for adoption of ASU 2018-02 (8,700)              
Increase in market value of released ESOP shares 493 0 493 0 0 0 0 0
Release of unearned ESOP Shares 4,253 0 0 0 0 0 0 4,253
Purchase of ESOP shares   0 0 0 0 0 0 (205)
Foreign currency translation 9,377 0 0 9,377 0 0 0 0
Unrealized net gain (loss) on investments, net of tax 97,943 0 0 97,943 0 0 0 0
Fair market value of cash flow hedges, net of tax   0 0   0 0 0 0
Adjustment to postretirement benefit obligation 333 0 0 333 0 0 0  
Net earnings 442,048 0 0 0 442,048 0 0 0
Common stock dividends (19,608) 0 0 0 (19,608) 0 0 0
Net activity 528,331 0 493 101,350 422,440 0 0 4,048
Balance at Mar. 31, 2020 $ 4,220,720 $ 10,497 $ 453,819 $ 34,652 $ 4,399,402 $ (525,653) $ (151,997) $ 0
v3.20.1
Consolidated Statement of Changes in Stockholders' Equity Parenthetical - $ / shares
12 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2018
Retained Earnings [Member]      
Common Stock, Dividends, Per Share, Declared $ 1.00 $ 2.00 $ 2.00
v3.20.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2018
Cash flow from operating activities:      
Net earnings $ 442,048 $ 370,857 $ 790,583
Adjustments to reconcile net earnings to cash provided by operations:      
Depreciation 664,120 581,025 555,069
Amortization of deferred policy acquisition costs 31,219 28,556 24,514
Amortization of premiums and accretion of discounts related to investments, net 13,317 13,107 12,790
Amortization of debt issuance costs 4,426 3,923 3,868
Interest credited to policyholders 51,857 35,387 32,302
Change in allowance for losses on trade receivables (14) 52 (120)
Change in allowance for inventory reserves 640 (146) 5,065
Net gains on disposal of real estate (758) (44) (195,414)
Net gains on sales of investments (13,596) (2,663) (6,269)
Net losses on equity investments (3,783) 5,739 0
Deferred income taxes 317,893 106,811 (193,434)
Net change in other operating assets and liabilities:      
Reinsurance recoverables and trade receivables 38,129 (31,365) (15,329)
Inventories and parts 1,776 (13,492) (12,384)
Prepaid expenses (391,120) (8,620) (40,765)
Capitalization of deferred policy acquisition costs (24,447) (25,957) (27,350)
Other assets (1,295) 157,152 (165,968)
Related party assets (5,645) 4,194 53,408
Accounts payable and accrued expenses (4,530) 10,263 (36,980)
Policy benefits and losses, claims and loss expenses payable (12,618) (236,120) 161,121
Other policyholders' funds and liabilities (4,857) 5,007 (109)
Deferred income (1,818) 966 5,524
Related party liabilities 1,626 (2,067) (616)
Net cash provided by operating activities 1,075,513 975,583 937,684
Cash flow from investing activities:      
Escrow deposits 6,617 4,299 31,362
Purchase of:      
Property, plant and equipment (2,309,406) (1,869,968) (1,363,745)
Short term investments (61,226) (54,048) (63,556)
Fixed maturities investments (379,349) (540,045) (390,900)
Equity securities (83) (957) (662)
Preferred stock 0 0 (1,000)
Real estate (4,286) (635) (1,939)
Mortgage loans (62,016) (63,611) (83,507)
Proceeds from sale and paydowns of:      
Property, plant and equipment 687,375 606,271 699,803
Short term investments 59,056 66,037 67,790
Fixed maturities investments 268,636 123,551 163,469
Equity securities 185 8,608 0
Preferred stock 2,375 1,625 4,208
Real estate 311 0 2,783
Mortgage loans 25,162 147,737 37,590
Net cash used by investing activities (1,766,649) (1,571,136) (898,304)
Cash flow from financing activities:      
Borrowings from credit facilities 1,121,412 897,311 498,464
Principal repayments on credit facilities (349,986) (299,748) (356,451)
Debt issuance costs (5,332) (7,243) (5,111)
Capital lease payments (307,782) (303,431) (296,363)
Employee stock ownership plan     (11,640)
Securitization deposits 0 0 (2,180)
Common stock dividends paid (29,404) (39,179) (29,380)
Investment contract deposits 234,640 400,123 401,814
Investment contract withdrawals (151,022) (132,833) (182,549)
Net cash provided by financing activities 512,320 514,582 16,604
Effects of exchange rate on cash (533) (4,716) 5,598
Increase (decrease) in cash and cash equivalents (179,349) (85,687) 61,582
Cash and cash equivalents at the beginning of period 673,701 759,388 697,806
Cash and cash equivalents at the end of the period $ 494,352 $ 673,701 $ 759,388
v3.20.1
Basis of Presentation
12 Months Ended
Mar. 31, 2020
Disclosure Text Block [Abstract]  
Basis of Presentation Note 1. Basis of Presentation AMERCO, a Nevada Corporation (“AMERCO”), has a fiscal year that ends on the 31 st of March for each year that is referenced. Our insurance company subsidiaries have fiscal years that end on the 31 st of December for each year that is referenced. They have been consolidated on that basis. Our insurance companies’ financial reporting processes conform to calendar year reporting as required by state insurance departments. Management believes that consolidating their calendar year into our fiscal year financial statements does not materially affect the financial position or results of operations. We disclose material events, if any, occurring during the intervening period. Consequently, all references to our insurance subsidiaries’ years 2019, 2018 and 2017 correspond to fiscal 2020, 2019 and 2018 for AMERCO. Accounts denominated in non-U.S. currencies have been translated into U.S. dollars. Certain amounts reported in previous years have been reclassified to conform to the current presentation. Please see Note 3, Accounting Policies – Adoption of New Accounting Pronouncements , of the Notes to Consolidated Financial Statements.
v3.20.1
Principles of Consolidation
12 Months Ended
Mar. 31, 2020
Disclosure Text Block [Abstract]  
Principles of Consolidation Note 2. Principles of Consolidation We apply Accounting Standards Codification (“ASC”) 810 - Consolidation (“ASC 810”) in our principles of consolidation. ASC 810 addresses arrangements where a company does not hold a majority of the voting or similar interests of a variable interest entity (“VIE”). A company is required to consolidate a VIE if it has determined it is the primary beneficiary. ASC 810 also addresses the policy when a company owns a majority of the voting or similar rights and exercises effective control. A VIE is not self-supportive due to having one or both of the following conditions: (i) it has an insufficient amount of equity for it to finance its activities without receiving additional subordinated financial support or (ii) its owners do not hold the typical risks and rights of equity owners. This determination is made upon the creation of a variable interest and is re-assessed on an on-going basis should certain changes in the operations of a VIE, or its relationship with the primary beneficiary trigger a reconsideration. After a reconsideration event occurs the most recent facts and circumstances are utilized in determining whether or not a company is a VIE, which other company(ies) have a variable interest in the entity, and whether or not the company’s interest is such that it is the primary beneficiary. We will continue to monitor our relationships with the other entities regarding who is the primary beneficiary, which could change based on facts and circumstances of any reconsideration events. Please see Note 20, Related Party Transactions, of the Notes to Consolidated Financial Statements. The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries, which are consolidated under the voting interest model. Intercompany accounts and transactions have been eliminated. Description of Legal Entities AMERCO is the holding company for: U-Haul International, Inc. (“U-Haul”); Amerco Real Estate Company (“Real Estate”); Repwest Insurance Company (“Repwest”); and Oxford Life Insurance Company (“Oxford”). Unless the context otherwise requires, the terms “Company,” “we,” “us” or “our” refer to AMERCO and all of its legal subsidiaries.   Description of Operating Segments AMERCO has three ( 3 ) reportable segments. They are Moving and Storage, Property and Casualty Insurance and Life Insurance. F- 10   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) Moving and Storage includes AMERCO, U-Haul, and Real Estate and the wholly-owned subsidiaries of U-Haul and Real Estate. Operations consist of the rental of trucks and trailers, sales of moving supplies, sales of towing accessories, sales of propane, and the rental of fixed and portable moving and storage units to the “do-it-yourself” mover and management of self-storage properties owned by others. Operations are conducted under the registered trade name U-Haul ® throughout the United States and Canada. Property and Casualty Insurance includes Repwest and its wholly-owned subsidiaries and ARCOA Risk Retention Group (“ARCOA”). Property and Casualty Insurance provides loss adjusting and claims handling for U-Haul through regional offices in the United States and Canada. Property and Casualty Insurance also underwrites components of the Safemove ® , Safetow ® , Safemove Plus ® , Safestor ® and Safestor Mobile ® protection packages to U-Haul customers. The business plan for Property and Casualty Insurance includes offering property and casualty products in other U-Haul related programs. ARCOA is a group captive insurer owned by us and our wholly owned subsidiaries whose purpose is to provide insurance products related to our moving and storage business. Life Insurance includes Oxford and its wholly owned subsidiaries. Life Insurance provides life and health insurance products primarily to the senior market through the direct writing and reinsuring of life insurance, Medicare supplement and annuity policies.
v3.20.1
Accounting Policies
12 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Accounting Policies Note 3.   Accounting Policies Use of Estimates The preparation of financial statements in conformity with the generally accepted accounting principles (“GAAP”) in the United States requires management to make estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. The accounting policies that we deem most critical to us and that require management’s most difficult and subjective judgments include the principles of consolidation, the recoverability of property, plant and equipment, the adequacy of insurance reserves, the recognition and measurement of impairments for investments accounted for under ASC 320 - Investments - Debt and Equity Securities and the recognition and measurement of income tax assets and liabilities. The actual results experienced by us may materially differ from management’s estimates. Cash and Cash Equivalents We consider cash equivalents to be highly liquid debt securities with insignificant interest rate risk with original maturities from the date of purchase of three months or less. Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash deposits. Accounts at each United States financial institution are insured by the Federal Deposit Insurance Corporation up to $ 250,000 . Accounts at each Canadian financial institution are insured by the Canada Deposit Insurance Corporation up to $ 100,000 CAD per account. As of March 31, 2020 and March 31, 2019, we held cash equivalents in excess of these insured limits. To mitigate this risk, we select financial institutions based on their credit ratings and financial strength. Investments Fixed Maturities and Marketable Equities. Fixed maturity investments consist of either marketable debt, equity or redeemable preferred stocks. As of the balance sheet dates, all of our investments in these securities were classified as available-for-sale. Available-for-sale investments are reported at fair value, with unrealized gains or losses recorded net of taxes and applicable adjustments to deferred policy acquisition costs in stockholders’ equity. Changes in the market value of common stocks are recognized in earnings. Fair value for these investments is based on quoted market prices, dealer quotes or discounted cash flows. The cost of investments sold is based on the specific identification method. In determining if and when a decline in market value below carrying value is an other-than-temporary impairment, management makes certain assumptions or judgments in its assessment including but not limited to: our ability to hold the security, quoted market prices, dealer quotes, discounted cash flows, industry factors, financial factors, and issuer specific information. Other-than-temporary impairments, to the extent of the decline, as well as realized gains or losses on the sale or exchange of investments are recognized in the current period operating results. F- 11   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) Mortgage Loans and Notes on Real Estate. Mortgage loans and notes on real estate are reported at their unpaid balance, net of any allowance for possible losses and any unamortized premium or discount. Recognition of Investment Income. Interest income from bonds and mortgage notes is recognized when earned. Dividends on common and preferred stocks are recognized on the ex-dividend dates. Realized gains and losses on the sale or exchange of investments are recognized at the trade date. Derivative Financial Instruments Our objective for holding derivative financial instruments is to manage interest rate risk exposure primarily through entering interest rate swap agreements and call options. We do not enter into these instruments for trading purposes. Counterparties to the interest rate swap agreements are major financial institutions. Derivatives are recognized at fair value on the balance sheet and are classified as prepaid expenses (asset) or accrued expenses (liability). Derivatives that are not designated as cash flow hedges for accounting purposes must be adjusted to fair value through income. If the derivative qualifies and is designated as a cash flow hedge, changes in its fair value will be recorded in accumulated other comprehensive income (loss) until the hedged item is recognized in earnings. See Note 11, Derivatives, of the Notes to Consolidated Financial Statements. Inventories and parts, net Inventories and parts, net were as follows:     March 31,     2020   2019     (In thousands) Truck and trailer parts and accessories (a) $ 88,138 $ 94,344 Hitches and towing components (b)   23,070   20,113 Moving supplies and propane (b)   11,824   10,356 Subtotal   123,032   124,813 Less: LIFO reserves   (18,886)   (18,987) Less: excess and obsolete reserves   (3,063)   (2,322) Total $ 101,083 $ 103,504           (a) Primarily held for internal usage, including equipment manufacturing and repair (b) Primarily held for retail sales           Inventories consist primarily of truck and trailer parts and accessories used to manufacture and repair rental equipment as well as products and accessories available for retail sale. Inventory is held at our owned locations; our independent dealers do not hold any of our inventory. Inventories are stated at the lower cost or net realizable value. Inventory cost is primarily determined using the last-in first-out method (“LIFO”). Inventories valued using LIFO consisted of approximately 96 % of the total inventories for March 31, 2020 and 2019. Had we utilized the first-in first-out method (“FIFO”), stated inventory balances would have been $18.9 million and $19.0 million higher as of March 31, 2020 and 2019, respectively. In fiscal 2020, the negative effect on income due to liquidation of a portion of the LIFO inventory was $ 0.1 million. F- 12   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) Property, Plant and Equipment Our Property, plant and equipment is stated at cost. Interest expense, if any, incurred during the initial construction of buildings is considered part of cost. Depreciation is computed for financial reporting purposes using the straight line or an accelerated method based on a declining balance formula over the following estimated useful lives: rental equipment 2-20 years and buildings and non-rental equipment 3-55 years. Routine maintenance costs are charged to operating expense as they are incurred. Gains and losses on dispositions of property, plant and equipment, other than real estate (“personal property”), are netted against depreciation expense when realized. The net amount of gains, netted against depreciation expense, were $ 27.1 million, $ 27.0 million and $ 11.8 million during fiscal 2020, 2019 and 2018, respectively. Equipment depreciation is recognized in amounts expected to result in the recovery of estimated residual values upon disposal, i.e., minimize gains or losses. In determining the depreciation rate, historical disposal experience, holding periods and trends in the market for vehicles are reviewed. As a result of changes in IRS regulations regarding the capitalization of assets, beginning in the first quarter of fiscal 2017, we raised the value threshold before certain assets are capitalized within our depreciation policy. This change in threshold, results in the immediate recognition of reported operating costs with a lagging decrease in depreciation expense over the term that these assets would have been depreciated. Due to this change, we had operating expenses of $ 27.7 million and $ 21.0 million in fiscal 2020 and 2019, respectively. This change in threshold benefited us through the immediate recognition of tax deductible costs. We regularly perform reviews to determine whether facts and circumstances exist which indicate that the carrying amount of assets, including estimates of residual value, may not be recoverable or that the useful life of assets are shorter or longer than originally estimated. Reductions in residual values (i.e., the price at which we ultimately expect to dispose of revenue earning equipment) or useful lives will result in an increase in depreciation expense over the remaining life of the equipment. Reviews are performed based on vehicle class, generally subcategories of trucks and trailers. We assess the recoverability of our assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their estimated remaining lives against their respective carrying amounts. We consider factors such as current and expected future market price trends on used vehicles and the expected life of vehicles included in the fleet. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. If asset residual values are determined to be recoverable, but the useful lives are shorter or longer than originally estimated, the net book value of the assets is depreciated over the newly determined remaining useful lives. For our box truck fleet we utilize an accelerated method of depreciation based upon a declining formula. Under the declining balances method (2.4 times declining balance), the book value of a rental truck is reduced approximately 16 %, 13 %, 11 %, 9 %, 8 %, 7 %, and 6 % during years one through seven, respectively and then reduced on a straight line basis to a salvage value of 15 % by the end of year fifteen. Comparatively, a standard straight line approach would reduce the book value by approximately 5.7 % per year over the life of the truck. Although we intend to sell our used vehicles for prices approximating book value, the extent to which we realize a gain or loss on the sale of used vehicles is dependent upon various factors including, but not limited to, the general state of the used vehicle market, the age and condition of the vehicle at the time of its disposal and the depreciation rates with respect to the vehicle . We typically sell our used vehicles at our sales centers throughout the United States and Canada, on our website at uhaul.com/trucksales or by phone at 1-866-404-0355. Additionally, we sell a large portion of our pickup and cargo van fleet at automobile dealer auctions. In addition to our property, plant and equipment, we had real estate held for future development or use of $ 69.6 million and $ 53.5 million for fiscal 2020 and 2019, respectively and is included in Investments, other.   Receivables Trade receivables include trade accounts from moving and self-storage customers and dealers, insurance premiums and amounts due from re-insurers, less management’s estimate of uncollectible accounts. F- 13   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) Insurance premiums receivable for policies that are billed through contracted agents are recorded net of commissions payable. A commission payable is recorded as a separate liability for those premiums that are billed direct. Reinsurance recoverables include case reserves and actuarial estimates of claims incurred but not reported ("IBNR"). These receivables are not expected to be collected until after the associated claim has been adjudicated and billed to the re-insurer. The reinsurance recoverables may have little or no allowance for doubtful accounts due to the fact that reinsurance is typically procured from carriers with strong credit ratings. Furthermore, we do not cede losses to a re-insurer if the carrier is deemed financially unable to perform on the contract. Reinsurance recoverables also include insurance ceded to other insurance companies. Notes and mortgage receivables include accrued interest and are reduced by discounts and amounts considered by management to be uncollectible.   Policy Benefits and Losses, Claims and Loss Expenses Payable Liabilities for future policy benefits related to life insurance, Medical supplement insurance, and deferred annuities are determined by management utilizing the net premium valuation methodology and are accrued when premium revenue is recognized. The liability, which represents the present value of future benefits to be paid to policyholders and related expenses less the present value of future net premiums, is estimated using assumptions applicable at the time the insurance contracts are written, with provisions for the risk of adverse deviation, as appropriate. Assumptions include expected mortality and morbidity experience, policy lapses and surrenders, current asset yields and expenses, and expected interest rate yields. The Company periodically performs a gross premium valuation and reviews original assumptions, including capitalized expenses which reduce the gross premium valuation, to evaluate whether the assets and liabilities are adequate and whether a loss reserve should be recognized. Liabilities for health, disability and other policies include estimates of payments to be made on insurance claims for reported losses and estimates of IBNR losses. Oxford’s liabilities for deferred annuity contracts consist of contract account balances that accrue to the benefit of the policyholders. Property and Casualty Insurance’s liability for reported and unreported losses is based on Repwest’s historical data along with industry averages. The liability for unpaid loss adjustment expenses is based on historical ratios of loss adjustment expenses paid to losses paid. Amounts recoverable from re-insurers on unpaid losses are estimated in a manner consistent with the claim liability associated with the re-insured policy. Adjustments to the liability for unpaid losses and loss expenses as well as amounts recoverable from re-insurers on unpaid losses are charged or credited to expense in the periods in which they are made. Due to the nature of the underlying risks and high degree of uncertainty associated with the determination of the liability for future policy benefits and claims, the amounts to be ultimately paid to settle these liabilities cannot be precisely determined and may vary significantly from the estimated liability, especially for long-tailed casualty lines of business such as excess workers’ compensation.   As a result of the long-tailed nature of the excess workers’ compensation policies written by Repwest during 1983 through 2001, it may take a number of years for claims to be fully reported and finally settled. On a regular basis insurance reserve adequacy is reviewed by management to determine if existing assumptions need to be updated. In determining the assumptions for calculating workers’ compensation reserves, management considers multiple factors including the following: Claimant longevity Cost trends associated with claimant treatments Changes in ceding entity and third party administrator reporting practices Changes in environmental factors including legal and regulatory Current conditions affecting claim settlements Future economic conditions including inflation F- 14   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) We have reserved each claim based upon the accumulation of current claim costs projected through each claimant’s life expectancy and then adjusted for applicable reinsurance arrangements.   Management reviews each claim bi-annually or more frequently, if there are changes in facts or circumstances to determine if the estimated life-time claim costs have increased and then adjusts the reserve estimate accordingly at that time.   We have factored in an estimate of what the potential cost increases could be in our IBNR liability.   We have not assumed settlement of the existing claims in calculating the reserve amount, unless it is in the final stages of completion. Continued increases in claim costs, including medical inflation and new treatments and medications could lead to future adverse development resulting in additional reserve strengthening.   Conversely, settlement of existing claims or if injured workers return to work or expire prematurely, could lead to future positive development.   Self-Insurance Reserves U-Haul retains the risk for certain public liability and property damage programs related to our rental equipment. The consolidated balance sheets include $ 410.1 million and $ 407.9 million of liabilities related to these programs as of March 31, 2020 and 2019, respectively. These liabilities are recorded in Policy benefits and losses, claims and loss expenses payable. Management takes into account losses incurred based upon actuarial estimates, past experience, current claim trends, as well as social and economic conditions. This liability is subject to change in the future based upon changes in the underlying assumptions including claims experience, frequency of incidents, and severity of incidents. Additionally, as of March 31, 2020 and 2019, the consolidated balance sheets include liabilities of $ 15.7 million and $ 15.6 million, respectively, related to medical plan benefits we provide for eligible employees. We estimate this liability based on actual claims outstanding as of the balance sheet date as well as an actuarial estimate of IBNR claims. These amounts are recorded in Accounts payable and accrued expenses on the consolidated balance sheets. Revenue Recognition Self-moving rentals are recognized for the period that trucks and moving equipment are rented. Self-storage revenues, based upon the number of paid storage contract days, are recognized as earned during the period.   Sales of self-moving and self-storage related products are recognized at the time that title passes and the customer accepts delivery. Property and casualty insurance premiums are recognized as revenue over the policy periods. Traditional life and Medicare supplement insurance premiums are recognized as revenue over the premium-paying periods of the contracts when due from the policyholders. For products where premiums are due over a significantly shorter duration than the period over which benefits are provided, such as our single premium whole life product, premiums are recognized when received and excess profits are deferred and recognized in relation to the insurance in force. Interest and investment income are recognized as earned. Amounts collected from customers for sales tax are recorded on a net basis. Please see Note 23, Revenue Recognition, of the Notes to Consolidated Financial Statements.   Advertising All advertising costs are expensed as incurred. Advertising expense was $ 13.7 million, $ 10.6 million and $ 8.1 million in fiscal 2020, 2019 and 2018, respectively.   Deferred Policy Acquisition Costs Commissions and other costs that fluctuate with and are primarily related to the successful acquisition or renewal of certain insurance premiums are deferred. For our Life Insurance’s life and health insurance products, these costs are amortized, with interest, in relation to revenue such that costs are realized as a constant percentage of revenue. For its annuity insurance products the costs are amortized, with interest, in relation to the present value of actual and expected gross profits. F- 15   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) Starting in fiscal 2014, new annuity contract holders were provided with a sales inducement in the form of a premium bonus (the “Sales Inducement Asset”).   Sales inducements are recognized as an asset with a corresponding increase to the policyholder liability and are amortized in a similar manner to Deferred Policy Acquisition Costs.   As of December 31, 2019 and 2018, the Sales Inducement Asset included with Deferred Policy Acquisition Costs amounted to $ 16.8 million and $ 19.1 million, respectively on the consolidated balance sheet and amortization expense totaled $ 5.5 million, $ 3.7 million and $ 3.7 million for the periods ended December 31, 2019, 2018 and 2017, respectively.   Environmental Costs Liabilities are recorded when environmental assessments and remedial efforts, if applicable, are probable and the costs can be reasonably estimated. The amount of the liability is based on management’s best estimate of undiscounted future costs. Certain recoverable environmental costs related to the removal of underground storage tanks or related contamination are capitalized and amortized over the estimated useful lives of the properties. These costs are capitalized if they improve the safety or efficiency of the property or are incurred in preparing the property for sale.   Income Taxes AMERCO files a consolidated tax return with all of its legal subsidiaries. The provision for income taxes reflects deferred income taxes resulting from changes in temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. Comprehensive Income (Loss) Comprehensive income (loss) consists of net earnings, foreign currency translation adjustments, unrealized gains and losses on investments, the change in fair value of cash flow hedges and the change in postretirement benefit obligations. Debt Issuance Costs We defer costs directly associated with acquiring third-party financing. Debt issuance costs are deferred and amortized to interest expense using the effective interest method. Debt issuance costs related to our long-term debt are reflected as a direct deduction from the carrying amount of the debt. Please see Note 9, Borrowings, of the Notes to Consolidated Financial Statements. Adoption of New Accounting Pronouncements On April 1, 2019, we adopted Accounting Standards Codification Topic 842, which require a lessee to recognize all leases with terms greater than 12 months on their balance sheet as a liability for its lease obligation, measured at the present value of lease payments not yet paid, and a corresponding asset representing its right to use the underlying asset over the lease term. The new leasing standard does not significantly change a lessee’s recognition, measurement and presentation of expenses and cash flows. Additionally, Topic 842 aligns key aspects of lessor accounting with the new revenue recognition guidance in Topic 606 (see   Note 23, Revenue Recognition) and expands disclosure of key information about leasing arrangements in an attempt to help financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases . We have determined portions of the vehicle rental contracts that convey the right to control the use of identified assets are within the scope of the accounting guidance contained in the new leasing standard. As described in Note 23, Revenue Recognition, the Company’s rental related revenues are accounted for under the revenue accounting standard Topic 606. Topic 842 requires leases to be classified as either operating or finance, with lease classification determined in a manner similar to the former lease guidance. The basic principle is that leases of all types convey the right to direct the use and obtain substantially all the economic benefits of an identified asset, meaning they create an asset and liability for lessees. Lessees classify leases as either finance leases (comparable to former capital leases) or operating leases. Costs for a finance lease are split between amortization and interest expense, with operating leases reporting a single lease expense. F- 16   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) Topic 842 substantially changed the accounting for sale-leasebacks going forward, where we are to assess if the contract qualifies as a sale under ASC 606. We have determined that our equipment sale-leasebacks do not qualify as a sale, as the buyer-lessors do not obtain control of the assets in our ongoing sale-leaseback arrangements. As a result, we expect future sale-leasebacks to be accounted for as a financial liability and the leased assets will be capitalized at cost. As all former sale-leasebacks have been accounted for as a sale, we did not reassess any former sale-leaseback transactions. We adopted the new leasing standard using the Effective Date Approach, which allows entities to only apply the new lease standard in the year of adoption. We elected the available practical expedients for existing or expired contracts of lessees and lessors wherein the Company is not required to reassess whether such contracts contain leases, the lease classification or the initial direct costs. Additionally, we elected as accounting policies to not recognize right of use assets or lease liabilities for short-term leases (i.e. those with a term of 12 months or less) and to combine lease and non-lease components in the contract for both lessee and lessor arrangements.   Adoption of this standard resulted in most of our operating lease commitments being recognized as operating lease liabilities and right-of-use (“ROU”) assets. Please see Note 18, Leases, of the Notes to Consolidated Financial Statements. On April 10, 2020, the FASB issued a question-and-answer document that allows entities to elect not evaluate whether a concession provided by a lessor to a lessee in response to COVID-19 is a lease modification. An entity that makes this election may then elect to apply the lease modification guidance to that relief or account for the concession as if it were contemplated in the existing contract. On April 1, 2019, the Company adopted ASU 2017-08, Receivables – Nonrefundable Fees and Other Cost (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities. These amendments shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The adoption of the standard did not have a material impact on our consolidated financial statements. Recent Accounting Pronouncements In June 2016, FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This standard requires the measurement and recognition of expected credit losses held at amortized cost. This new standard requires the use of forward-looking information to estimate credit losses and requires credit losses for available for sale debt securities to be recorded through an allowance for credit losses rather than a reduction in the amortized cost basis. This update is effective for public companies for annual reporting periods beginning after December 15, 2019. In November 2019, the FASB released ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, which clarified narrow issues within ASU 2016-13. Specifically, the four main clarifications include: expected recoveries for purchased financial assets with credit deterioration; transition relief for troubled debt restructurings; disclosures for accrued interest receivables; and financial assets backed by collateral maintenance provisions. The Company has completed the development of the implementation plan and is in the process of model development. The Company is evaluating whether ASU 2016-13 will have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB adopted ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts (“ASU 2018-12”). The amendments in this update require insurance companies to annually review and update the assumptions used for measuring the liability under long-duration contracts, such as life insurance, disability income, and annuities. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 31, 2020. We are currently in the process of evaluating the impact of the adoption of this amendment on our financial statements; however, the adoption of ASU 2018-12 will impact the statements of operations because the effect of any update to the assumptions we used at the inception of the contracts will be recorded in net income. F- 17   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which modifies the disclosures on fair value measurements by removing the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for the timing of such transfers. ASU 2018-13 expands the disclosure requirements for Level 3 fair value measurements, primarily focused on changes in unrealized gains and losses included in other comprehensive income. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The adoption of the standard is not expected to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General Subtopic 715-20 - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”), which amends ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020. We are currently evaluating the impact of this standard on our consolidated financial statements. In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This standard provides temporary optional expedients and exceptions to the US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. Entities can elect not to apply certain modification accounting requirements to contracts affected by what the guidance calls reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. The guidance is effective upon issuance and generally can be applied through December 31, 2022. We are currently evaluating the impact of these standards on our consolidated financial statements. From time to time, new accounting pronouncements are issued by the FASB or the SEC that are adopted by us as of the specified effective date. Unless otherwise discussed, these ASUs entail technical corrections to existing guidance or affect guidance related to specialized industries or entities and therefore will have minimal, if any, impact on our financial position or results of operations upon adoption.   Note 4.   Earnings Per Share Our earnings per share is calculated by dividing our earnings available to common stockholders by the weighted average common shares outstanding, basic and diluted. The weighted average common shares outstanding exclude post-1992 shares of the employee stock ownership plan that have not been committed to be released. The unreleased shares, net of shares committed to be released, were 11,949 ; and 17,581 as of March 31, 2019 and 2018, respectively. As of March 31, 2020, all of these shares have been released.   F- 18  
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Earnings Per Share
12 Months Ended
Mar. 31, 2020
Earnings Per Share [Abstract]  
Earnings Per Share Note 4.   Earnings Per Share Our earnings per share is calculated by dividing our earnings available to common stockholders by the weighted average common shares outstanding, basic and diluted. The weighted average common shares outstanding exclude post-1992 shares of the employee stock ownership plan that have not been committed to be released. The unreleased shares, net of shares committed to be released, were 11,949 ; and 17,581 as of March 31, 2019 and 2018, respectively. As of March 31, 2020, all of these shares have been released.
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Reinsurance Recoverables and Trade Receivables, Net
12 Months Ended
Mar. 31, 2020
Reinsurance Disclosures [Abstract]  
Reinsurance Recoverables and Trade Receivables, Net F- 18   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) Note 5.   Reinsurance Recoverables and Trade Receivables, Net Reinsurance recoverables and trade receivables, net were as follows:     March 31,     2020   2019     (In thousands) Reinsurance recoverable $ 89,020 $ 99,615 Trade accounts receivable   59,394   90,786 Paid losses recoverable   624   2,333 Accrued investment income   25,744   25,142 Premiums and agents' balances   1,582   1,545 Independent dealer receivable   1,015   390 Other receivables   9,828   5,523     187,207   225,334 Less: Allowance for doubtful accounts   (535)   (549)   $ 186,672 $ 224,785
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Investments
12 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Investments Note 6.   Investments Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. We deposit bonds with insurance regulatory authorities to meet statutory requirements. The adjusted cost of bonds on deposit with insurance regulatory authorities was $ 30.8 million for both December 31, 2019 and 2018. Available-for-Sale Investments Available-for-sale investments as of March 31, 2020 were as follows:       Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses More than 12 Months   Gross Unrealized Losses Less than 12 Months   Estimated Market Value           (In thousands) U.S. treasury securities and government obligations $ 112,421 $ 7,959 $ (1) $ – $ 120,379 U.S. government agency mortgage-backed securities   88,449   759   (1)   (373)   88,834 Obligations of states and political subdivisions   287,643   20,664   (155)   –   308,152 Corporate securities   1,656,425   100,302   (919)   (812)   1,754,996 Mortgage-backed securities   187,784   6,011   (1)   (107)   193,687 Redeemable preferred stocks   1,493   72   –   –   1,565   $ 2,334,215 $ 135,767 $ (1,077) $ (1,292) $ 2,467,613 F- 19   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) Available-for-sale investments as of March 31, 2019 were as follows:       Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses More than 12 Months   Gross Unrealized Losses Less than 12 Months   Estimated Market Value           (In thousands) U.S. treasury securities and government obligations $ 136,010 $ 2,409 $ (2,104) $ (447) $ 135,868 U.S. government agency mortgage-backed securities   31,101   433   (146)   (19)   31,369 Obligations of states and political subdivisions   298,955   8,079   (233)   (905)   305,896 Corporate securities   1,613,199   14,777   (14,257)   (24,986)   1,588,733 Mortgage-backed securities   148,203   880   (285)   (903)   147,895 Redeemable preferred stocks   1,493   20   –   (45)   1,468   $ 2,228,961 $ 26,598 $ (17,025) $ (27,305) $ 2,211,229   The available-for-sale tables include gross unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. We sold available-for-sale securities with a fair value of $ 264.5 million, $ 114.8 million and $ 163.7 million in fiscal 2020, 2019 and 2018, respectively. The gross realized gains on these sales totaled $ 6.4 million, $ 2.0 million and $ 5.4 million in fiscal 2020, 2019 and 2018, respectively. We realized gross losses on these sales of $ 0.2 million, $ 0.2 million and $ 0.3 million in fiscal 2020, 2019 and 2018, respectively.   The unrealized losses of more than twelve months in the available-for-sale tables are considered temporary declines. We track each investment with an unrealized loss and evaluate them on an individual basis for other-than-temporary impairments, including obtaining corroborating opinions from third party sources, performing trend analysis and reviewing management’s future plans. Certain of these investments may have declines determined by management to be other-than-temporary and we recognized these write-downs through earnings. There were no write downs in fiscal 2020, 2019 and 2018. We reviewed our available-for-sale investments at the end of the first quarter of fiscal 2021 and noted an increase in the unrealized loss position of $50.2 million (unaudited). We reviewed credit ratings of the issuers of these securities and determined that each issuer was current on its scheduled interest, dividends or principal payments. We further reviewed the fair value of these securities a month later and observed that the unrealized loss had recovered by $23.4 million (unaudited). The investment portfolio primarily consists of corporate securities and obligations of states and political subdivisions. We believe we monitor our investments as appropriate. Our methodology of assessing other-than-temporary impairments is based on security-specific analysis as of the balance sheet date and considers various factors, including the length of time to maturity, the extent to which the fair value has been less than the cost, the financial condition and the near-term prospects of the issuer, and whether the debtor is current on its contractually obligated interest and principal payments. Nothing has come to management’s attention that would lead to the belief that any issuer would not have the ability to meet the remaining contractual obligations of the security, including payment at maturity. We have the ability and intent not to sell our fixed maturity and common stock investments for a period of time sufficient to allow us to recover our costs. The portion of other-than-temporary impairment related to a credit loss is recognized in earnings. The significant inputs utilized in the evaluation of mortgage backed securities credit losses include ratings, delinquency rates, and prepayment activity. The significant inputs utilized in the evaluation of asset backed securities credit losses include the time frame for principal recovery and the subordination and value of the underlying collateral. F- 20   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) There were no credit losses recognized in earnings for which a portion of an other-than-temporary impairment was recognized in accumulated other comprehensive loss for fiscal 2020, 2019 or 2018. The adjusted cost and estimated market value of available-for-sale investments by contractual maturity, were as follows:       March 31, 2020   March 31, 2019     Amortized Cost   Estimated Market Value   Amortized Cost   Estimated Market Value     (In thousands) Due in one year or less $ 128,747 $ 129,420 $ 71,987 $ 71,954 Due after one year through five years   547,821   566,934   541,195   540,658 Due after five years through ten years   636,036   678,636   621,031   614,485 Due after ten years   832,334   897,371   845,052   834,769     2,144,938   2,272,361   2,079,265   2,061,866                   Mortgage backed securities   187,784   193,687   148,203   147,895 Redeemable preferred stocks   1,493   1,565   1,493   1,468   $ 2,334,215 $ 2,467,613 $ 2,228,961 $ 2,211,229   As of March 31, 2018, equity investments were classified as available-for-sale on our balance sheet. However, upon adoption of ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , on April 1, 2018, the updated guidance eliminated the available-for-sale balance sheet classification for equity investments. As of March 31, 2020 and 2019, our common stock and non-redeemable preferred stock that are included in Investments, fixed maturities and marketable equities on our balance sheet are stated in the table below. The changes in the fair value of these equity investments are recognized through Net investment and interest income.   Equity investments of common stock and non-redeemable preferred stock were as follows:     March 31, 2020   March 31, 2019     Amortized Cost   Estimated Market Value   Amortized Cost   Estimated Market Value     (In thousands) Common stocks $ 9,775 $ 20,015 $ 10,123 $ 17,379 Non-redeemable preferred stocks   5,076   5,110   7,451   6,789   $ 14,851 $ 25,125 $ 17,574 $ 24,168 Investments, other The carrying value of other investments was as follows:     March 31,     2020   2019     (In thousands) Mortgage loans, net $ 262,688 $ 225,829 Short-term investments   6,995   5,546 Real estate   69,569   53,519 Policy loans   11,212   10,491 Other equity investments   9,909   5,351   $ 360,373 $ 300,736 F- 21   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) Mortgage loans are carried at the unpaid balance, less an allowance for probable losses net of any unamortized premium or discount. The portfolio of mortgage loans is principally collateralized by self-storage facilities and commercial properties. The interest rate range on the mortgage loans is 4.1 % to 8.2 % with maturities between 2020 and 2036 . The allowance for probable losses was $ 0.5 million for both March 31, 2020 and 2019, respectively. The estimated fair value of these loans as of March 31, 2020 and 2019 were not materially different compared to the carrying value. These loans represent first lien mortgages held by us. Mortgage loans are reviewed on an ongoing basis and analysis may include market analysis, estimated valuations of the underlying collateral, loan to value ratios, tenant creditworthiness and other factors. For our mortgage loans, no specifically identified loans were impaired as of March 31, 2020. We have not experienced any material losses related to the notes from individual or groups of notes in any particular industry or geographic area. Short-term investments consist primarily of investments in money market funds, mutual funds and any other investments with short-term characteristics that have original maturities of less than one year at acquisition. These investments are recorded at cost, which approximates fair value. Real estate held for future development or use is carried at the lower of fair value at time of acquisition or current estimated fair value less cost to sell. Other equity investments are carried at cost and assessed for impairment. Insurance policy loans are carried at their unpaid balance. Note 7.   Other Assets Other assets were as follows:     March 31,     2020   2019     (In thousands) Deposits (debt-related) $ 33,020 $ 30,408 Cash surrender value of life insurance policies   31,371   30,985 Deposits (real estate related)   7,565   16,961   $ 71,956 $ 78,354   Note 8.   Net Investment and Interest Income Net investment and interest income, were as follows:     Years Ended March 31,     2020   2019   2018     (In thousands) Fixed maturities $ 107,434 $ 99,348 $ 84,476 Real estate   7,304   5,538   5,344 Insurance policy loans   974   1,305   1,212 Mortgage loans   17,164   16,674   17,783 Short-term, amounts held by ceding reinsurers, net and other investments   9,807   (7,429)   3,098 Investment income   142,683   115,436   111,913 Less: investment expenses   (4,854)   (4,502)   (4,766) Investment income - related party, net eliminations   –   –   3,326 Net investment and interest income $ 137,829 $ 110,934 $ 110,473   F- 22  
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Other Assets
12 Months Ended
Mar. 31, 2020
Disclosure Text Block [Abstract]  
Other Assets Note 7.   Other Assets Other assets were as follows:     March 31,     2020   2019     (In thousands) Deposits (debt-related) $ 33,020 $ 30,408 Cash surrender value of life insurance policies   31,371   30,985 Deposits (real estate related)   7,565   16,961   $ 71,956 $ 78,354
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Net Investment and Interest Income
12 Months Ended
Mar. 31, 2020
Disclosure Text Block [Abstract]  
Net Investment and Interest Income Note 8.   Net Investment and Interest Income Net investment and interest income, were as follows:     Years Ended March 31,     2020   2019   2018     (In thousands) Fixed maturities $ 107,434 $ 99,348 $ 84,476 Real estate   7,304   5,538   5,344 Insurance policy loans   974   1,305   1,212 Mortgage loans   17,164   16,674   17,783 Short-term, amounts held by ceding reinsurers, net and other investments   9,807   (7,429)   3,098 Investment income   142,683   115,436   111,913 Less: investment expenses   (4,854)   (4,502)   (4,766) Investment income - related party, net eliminations   –   –   3,326 Net investment and interest income $ 137,829 $ 110,934 $ 110,473
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Borrowings
12 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Borrowings F- 22   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) Note 9.   Borrowings Long-Term Debt Long-term debt was as follows:                   March 31,   2020 Rates (a)   Maturities   2020   2019                   (In thousands) Real estate loan (amortizing term)     2.36 %     2023 $ 92,913 $ 102,913 Senior mortgages 3.11 % 6.62 % 2021 - 2038   2,029,878   1,741,652 Real estate loans (revolving credit) 2.98 % 3.14 % 2022 - 2025   519,000   429,400 Fleet loans (amortizing term) 1.95 % 4.66 % 2020 - 2027   224,089   263,209 Fleet loans (revolving credit) 2.73 % 2.75 % 2022 - 2024   567,000   530,000 Finance/capital leases (rental equipment) 1.92 % 5.04 % 2020 - 2026   734,870   1,042,652 Finance liability (rental equipment) 2.63 % 4.22 % 2024 - 2027   398,834   – Other obligations 2.50 % 8.00 % 2020 - 2049   84,484   82,417 Notes, loans and finance/capital leases payable               $ 4,651,068 $ 4,192,243 Less: Debt issuance costs                 (29,777)   (28,920) Total notes, loans and finance/capital leases payable, net               $ 4,621,291 $ 4,163,323                         (a) Interest rate as of March 31, 2020, taking into account the effect of applicable hedging instruments         Real Estate Backed Loans Real Estate Loan Real Estate and certain of its subsidiaries and U-Haul Company of Florida are borrowers under a real estate loan (the “Real Estate Loan”).   The Real Estate Loan requires monthly principal and interest payments, with the unpaid loan balance and accrued and unpaid interest due at maturity. The Real Estate Loan is secured by various properties owned by the borrowers.   The interest rate, per the provisions of the amended loan agreement, is the applicable London Inter-Bank Offer Rate (“LIBOR”) plus the applicable margin. As of March 31, 2020, the applicable LIBOR was 0.86 % and the applicable margin was 1.50 %, the sum of which was 2.36 %. The default provisions of the Real Estate Loan include non-payment of principal or interest and other standard reporting and change-in-control covenants. There are limited restrictions regarding our use of the funds. Senior Mortgages Various subsidiaries of Real Estate and U-Haul are borrowers under certain senior mortgages. The senior mortgages require monthly principal and interest payments. The senior mortgages are secured by certain properties owned by the borrowers. The fixed interest rates, per the provisions of the senior mortgages, range between 3.11 % and 6.62 %. Certain senior mortgages have an anticipated repayment date and a maturity date. If these senior mortgages are not repaid by the anticipated repayment date, the interest rate on these mortgages would increase from the current fixed rate. We are using the anticipated repayment date for our maturity schedule. Real Estate and U-Haul have provided limited guarantees of the senior mortgages. The default provisions of the senior mortgages include non-payment of principal or interest and other standard reporting and change-in-control covenants. There are limited restrictions regarding our use of the funds. F- 23   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) Real Estate Loans (Revolving Credit) Various subsidiaries of Real Estate are borrowers under asset-backed real estate loans with an aggregate borrowing capacity of $ 385.0 million. These loans are secured by certain properties owned by the borrowers. The loan agreements provide for term loans, subject to the terms of the loan agreements. The final maturity of the loans is between June 2022 and March 2025 . The loans require monthly interest payments with the unpaid loan balance and accrued and unpaid interest due at maturity. The interest rate, per the provision of the loan agreements, is the applicable LIBOR plus the applicable margin. As of March 31, 2020, the applicable LIBOR was between 1.58 % and 1.60 % and the margin was between 1.25 % and 1.40 %, the sum of which was between 2.85% and 3.10%. AMERCO is the guarantor of these loans. The default provisions of the loan include non-payment of principal or interest and other standard reporting and change-in-control covenants. AMERCO is a borrower under a real estate loan. The current maximum credit commitment is $ 150.0 million, which can be increased to $ 300.0 million by bringing in other lenders. As of March 31, 2020, the outstanding balance was $ 150.0 million. This loan agreement provides for revolving loans, subject to the terms of the loan agreement. This loan requires monthly interest payments with the unpaid loan balance and accrued and unpaid interest due at maturity. As of March 31, 2020, the applicable LIBOR was 1.60 % and the margin was 1.38 %, the sum of which was 2.98 %. The default provisions of the loan include non-payment of principal or interest and other standard reporting and change-in-control covenants. There is a 0.30 % fee charged for unused capacity. In April 2020, the Company expanded the borrowing capacity to $ 200.0 million, extended the maturity to April 2023 and the margin increased to 2.25 %. Fleet Loans Rental Truck Amortizing Loans The amortizing loans require monthly principal and interest payments, with the unpaid loan balance and accrued and unpaid interest due at maturity. These loans were used to purchase new trucks. The interest rates, per the provision of the loan agreements, are carried at fixed rates ranging between 1.95 % and 4.66 %. AMERCO, and in some cases U-Haul, is guarantor of these loans. The default provisions of these loans include non-payment of principal or interest and other standard reporting and change-in-control covenants. Rental Truck Revolvers Various subsidiaries of U-Haul entered into three revolving fleet loans with an aggregate borrowing capacity of $ 590.0 million. The interest rates, per the provision of the loan agreements, are the applicable LIBOR plus the applicable margin. As of March 31, 2020, the applicable LIBOR was between 1.58 % and 1.60 %, and the margin was 1.15 %, the sum of which was between 2.73% and 2.75%. Only interest is paid on the loans until the last nine months of the respective loan terms when principal becomes due monthly. Finance/Capital Leases The Finance/Capital Lease balance represents our sale-leaseback transactions of rental equipment that were entered into and classified as capital leases prior to the adoption of ASC 842 on April 1, 2019. The historical capital lease balance was reclassified to Right-of-use assets-finance, net. The agreements are generally seven (7) year terms with interest rates ranging from 1.92 % to 5.04 %.   All of our finance leases are collateralized by our rental fleet. There were no new financing leases, as assessed under the new leasing guidance, entered into during fiscal 2020. F- 24   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) Finance Liabilities Finance Liabilities represent our rental equipment financing transactions that have historically been accounted for as capital leases prior to the adoption of ASC 842 on April 1, 2019, which substantially changed the accounting for sale-leasebacks going forward. In accordance with the new leasing guidance, we assess if sale-leaseback transactions qualify as a sale at initiation by determining if a transfer of ownership occurs.   We have determined that our equipment sale-leasebacks do not qualify as a sale, as the buyer-lessors do not obtain control of the assets in our ongoing sale-leaseback arrangements. As a result, we expect future sale-leasebacks to be accounted for as a financial liability and the leased assets will be capitalized at cost.     Our finance liabilities have an average term of seven (7) years and interest rates ranging from 2.63 % to 4.22 %. These finance liabilities are collateralized by our rental fleet.   Other Obligations In February 2011, AMERCO and U.S. Bank, NA (the “Trustee”) entered into the U-Haul Investors Club ® Indenture.   AMERCO and the Trustee entered into this indenture to provide for the issuance of notes by us directly to investors over our proprietary website, uhaulinvestorsclub.com (“U-Notes ® ”). The U-Notes ® are secured by various types of collateral including, but not limited to, rental equipment and real estate.   U-Notes ® are issued in smaller series that vary as to principal amount, interest rate and maturity.   U-Notes ® are obligations of the Company and secured by the associated collateral; they are not guaranteed by any of the Company’s affiliates or subsidiaries. As of March 31, 2020, the aggregate outstanding principal balance of the U-Notes ® issued was $ 87.3 million, of which $ 2.8 million is held by our insurance subsidiaries and eliminated in consolidation. Interest rates range between 2.50 % and 8.00 % and maturity dates range between 2020 and 2049 . Oxford is a member of the Federal Home Loan Bank (“FHLB”) and, as such, the FHLB has made advances to Oxford. As of December 31, 2019, the advances had an aggregate balance of $ 60.0 million, for which Oxford pays fixed interest rates between 1.72 % and 2.95 % with maturities between March 30, 2020 and September 30, 2022. As of December 31, 2019, available-for-sale investments held with the FHLB totaled $ 117.9 million, of which $ 67.6 million were pledged as collateral to secure the outstanding advances. The balances of these advances are included within Liabilities from investment contracts on the condensed consolidated balance sheets. Annual Maturities of Notes, Loans and Finance/Capital Leases Payable The annual maturities of our notes, loans and finance/capital leases payable as of March 31, 2020 for the next five years and thereafter are as follows:     Years Ended March 31,     2021   2022   2023   2024   2025   Thereafter   Total     (In thousands) Notes, loans and finance/capital leases payable, secured $ 459,184 $ 510,933 $ 1,011,688 $ 755,025 $ 393,498 $ 1,520,740 $ 4,651,068     F- 25  
v3.20.1
Interest on Borrowings
12 Months Ended
Mar. 31, 2020
Interest Expense, Borrowings [Abstract]  
Interest on Borrowings F- 25   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) Note 10.   Interest on Borrowings Interest Expense Components of interest expense include the following:     Years Ended March 31,     2020   2019   2018     (In thousands) Interest expense $ 180,444 $ 150,609 $ 125,412 Capitalized interest   (23,517)   (12,733)   (6,466) Amortization of transaction costs   4,427   3,745   3,867 Interest expense resulting from cash flow hedges   (404)   824   3,893 Total interest expense   160,950   142,445   126,706   Interest paid in cash, including payments related to derivative contracts, amounted to $ 168.1 million, $ 149.8 million and $ 129.3 million for fiscal 2020, 2019 and 2018, respectively. Interest Rates Interest rates and our revolving credit borrowings were as follows:     Revolving Credit Activity       Years Ended March 31,       2020   2019   2018       (In thousands, except interest rates)   Weighted average interest rate during the year   3.31 % 3.39 % 2.48 % Interest rate at year end   2.86 % 3.60 % 2.84 % Maximum amount outstanding during the year $ 1,086,000 $ 959,400 $ 538,000   Average amount outstanding during the year $ 1,002,081 $ 699,415 $ 517,997   Facility fees $ 193 $ 374 $ 410  
v3.20.1
Derivatives
12 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Note 11.   Derivatives We manage exposure to changes in market interest rates. Our use of derivative instruments is limited to highly effective interest rate swaps to hedge the risk of changes in cash flows (future interest payments) attributable to changes in LIBOR swap rates, with the designated benchmark interest rate being hedged on certain of our LIBOR indexed variable rate debt and a variable rate operating lease. The interest rate swaps effectively fix our interest payments on certain LIBOR indexed variable rate debt. We monitor our positions and the credit ratings of its counterparties and do not currently anticipate non-performance by the counterparties. Interest rate swap agreements are not entered into for trading purposes. These fair values are determined using pricing valuation models which include broker quotes for which significant inputs are observable. They include adjustments for counterparty credit quality and other deal-specific factors, where appropriate and are classified as Level 2 in the fair value hierarchy. The derivative fair values reflected in prepaid expense and accounts payable and accrued expenses in the consolidated balance sheet were as follows:           March 31, 2020   March 31, 2019     (In thousands) Interest rate contracts designated as hedging instruments         Assets $ – $ 139 Liabilities   8,214   – Notional amount (debt)   235,000   22,792   F- 26   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued)     The Effect of Interest Rate     Contracts on the Statements of Operations     Years Ended March 31,     2020   2019   2018     (In thousands) (Gain) loss recognized in AOCI on interest rate contracts $ 8,356 $ (633) $ (4,445) (Gain) loss reclassified from AOCI into income $ (401) $ 789 $ 3,893   Gains or losses recognized in income on derivatives are recorded as interest expense in the consolidated statements of operations.   During fiscal year 2020, we recognized a decrease in the fair value of our cash flow hedges of $ 6.3 million, net of taxes.   During fiscal year 2020, we reclassified $ 0.4 million from accumulated other comprehensive income (loss) (“AOCI”) to interest expense.   As of March, 31 2020, we expect to reclassify $ 0.4 million of net gains on interest contracts from AOCI to earnings as interest expense over the next twelve months. We use derivatives to hedge our equity market exposure to indexed annuity products sold by our Life Insurance company. These contracts earn a return for the contractholder based on the change in the value of the S&P 500 index between annual index point dates. We buy and sell listed equity and index call options and call option spreads. The credit risk is with the party in which the options are written. The net option price is paid up front and there are no additional cash requirements or additional contingent liabilities. These contracts are held at fair market value on our balance sheet. At March 31, 2020 and 2019, these derivative hedges had a net market value of $ 5.9 million and $ 1.5 million, with notional amounts of $ 246.8   million and $ 284.0   million, respectively. These derivative instruments are included in Investments, other; on the consolidated balance sheets. The fair values of these call options are determined based on quoted market prices from the relevant exchange and are classified as Level 1 in the fair value hierarchy. Although the call options are employed to be effective hedges against our policyholder obligations from an economic standpoint, they do not meet the requirements for hedge accounting under GAAP. Accordingly, the call options are marked to fair value on each reporting date with the change in fair value, plus or minus, included as a component of net investment and interest income. The change in fair value of the call options include the gains or losses recognized at the expiration of the option term and the changes in fair value for open contracts.
v3.20.1
Accumulated Other Comprehensive Income
12 Months Ended
Mar. 31, 2020
Disclosure Text Block [Abstract]  
Other Comprehensive Income Noncontrolling Interest [Text Block] Note 12.   Accumulated Other Comprehensive Income (Loss) A summary of our AOCI components, net of tax, were as follows:       Foreign Currency Translation   Unrealized Net Gain on Investments   Fair Market Value of Cash Flow Hedges   Postretirement Benefit Obligation Net Loss   Accumulated Other Comprehensive Income (Loss)           (In thousands) Balance as of March 31, 2019 $ (56,612) $ (7,259) $ 107 $ (2,934) $ (66,698) Foreign currency translation   9,377   –   –   –   9,377 Unrealized net gain on investments   –   97,943   –   –   97,943 Change in fair value of cash flow hedges   –   –   (6,301)   –   (6,301) Amounts reclassified into earnings on hedging activities   –   –   (2)   –   (2) Change in post retirement benefit obligaiton   –   –   –   333   333 Other comprehensive income (loss)   9,377   97,943   (6,303)   333   101,350 Balance as of March 31, 2020 $ (47,235) $ 90,684 $ (6,196) $ (2,601) $ 34,652
v3.20.1
Stockholders' Equity
12 Months Ended
Mar. 31, 2020
Stockholders' Equity Attributable to Parent [Abstract]  
Stockholders' Equity F- 27   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) Note 13. Stockholders’ Equity The following table lists the dividends that have been declared and issued for fiscal years 2020 and 2019. Common Stock Dividends Declared Date   Per Share Amount   Record Date   Dividend Date               December 4, 2019 $ 0.50   December 19, 2019   January 6, 2020 August 22, 2019   0.50   September 9, 2019   September 23, 2019 March 6, 2019   0.50   March 21, 2019   April 4, 2019 December 5, 2018   0.50   December 20, 2018   January 7, 2019 August 23, 2018   0.50   September 10, 2018   September 24, 2018 June 6, 2018   0.50   June 21, 2018   July 5, 2018   On June 8, 2016, our stockholders’ approved the 2016 AMERCO Stock Option Plan (Shelf Stock Option Plan). As of March 31, 2020, no awards had been issued under this plan.
v3.20.1
Provision for Taxes
12 Months Ended
Mar. 31, 2020
Disclosure Text Block [Abstract]  
Provision for Taxes Note 14.   Provision for Taxes Earnings before taxes and the provision for taxes consisted of the following:     Years Ended March 31,     2020   2019   2018     (In thousands) Pretax earnings:             U.S. $ 372,687 $ 466,175 $ 628,901 Non-U.S.   5,437   11,354   8,712 Total pretax earnings $ 378,124 $ 477,529 $ 637,613               Current provision (benefit)             Federal $ (373,817) $ (6,114) $ 21,780 State   (9,600)   3,420   6,471 Non-U.S.   949   1,375   1,412     (382,468)   (1,319)   29,663 Deferred provision (benefit)             Federal   307,846   94,961   (199,415) State   9,728   11,311   15,479 Non-U.S.   970   1,719   1,303     318,544   107,991   (182,633)               Provision for income tax expense (benefit) $ (63,924) $ 106,672 $ (152,970)               Income taxes paid (net of income tax refunds received) $ 6,859 $ 4,255 $ 68,671 F- 28   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) The difference between the tax provision at the statutory federal income tax rate and the tax provision attributable to income before taxes was as follows:     Years Ended March 31,       2020   2019   2018       (in percentages)   Statutory federal income tax rate   21.00 % 21.00 % 31.55 % Increase (reduction) in rate resulting from:               Deferred tax liability revaluation   – % – % (58.25) % NOL tax rate benefit   (38.62) % – % – % State taxes, net of federal benefit   0.02 % 2.41 % 2.33 % Foreign rate differential   0.21 % 0.15 % – % Federal tax credits   (0.53) % (0.15) % (0.32) % Transition tax   – % (0.20) % 1.83 % Tax-exempt income   (0.17) % – % – % Dividend received deduction   (0.01) % (0.01) % (0.03) % Phase III tax   – % – % 0.63 % Other   1.19 % (0.86) % (1.73) % Actual tax expense (benefit) of operations   (16.91) % 22.34 % (23.99) %     Significant components of our deferred tax assets and liabilities were as follows:       March 31,     2020   2019 Deferred tax assets:   (In thousands) Net operating loss and credit carry forwards $ 25,973 $ 90,061 Accrued expenses   105,171   105,727 Policy benefit and losses, claims and loss expenses payable, net   20,189   16,515 Operating leases   22,353   – Total deferred tax assets $ 173,686 $ 212,303           Deferred tax liabilities:         Property, plant and equipment $ 1,198,198 $ 940,433 Operating leases   22,353   – Deferred policy acquisition costs   12,795   14,191 Unrealized gains   29,873   4,223 Other   4,010   4,426 Total deferred tax liabilities   1,267,229   963,273 Net deferred tax liability $ 1,093,543 $ 750,970   On March 27, 2020, President Trump signed into U.S. federal law the Coronavirus Aid, Relief and Economic Security (the “CARES Act”), which is aimed at providing emergency assistance and health care for individuals, families, and businesses affected by COVID-19 and generally supporting the U.S. economy.   Among other things, the CARES Act includes provisions relating to net operating loss (“NOL”) carryback periods, alternative minimum tax (“AMT”) credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property.   In particular, the CARES Act allows for NOLs generated in 2018, 2019, or 2020 to be carried back 5 years. F- 29   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) As a result, the NOL and credit carry-forwards in the above table are primarily attributable to state NOLs.   Federal NOLs from fiscal years 2018, 2019 and 2020 have been carried back to prior tax years as provided by the CARES Act.   The statutory tax rate for the carryback years was 35% as compared to 21% at present.   Consequently, we recognized a benefit amount of $ 146.0 million for fiscal year 2020.   It is possible future legislation could reduce or delay our ability to carryback these losses. As of March 31, 2020 and March 31, 2019, AMERCO had state NOLs of $ 337.3 million and $ 172.3 million, respectively, that will begin to expire March 31, 2021, if not utilized. The 2017 Tax Cuts and Jobs Act (the “Tax Reform Act”) was enacted on December 22, 2017. The Tax Reform Act reduced the U.S. federal corporate income tax rate from 35% to 21%, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and repealed the deferral of the phase three tax for life insurance companies. The blended statutory Federal Tax Rate for our full fiscal year 2018 was 31.55 %. As of December 22, 2018, we completed our accounting for the tax effects of enactment of the Tax Reform Act. For fiscal year 2018, we recognized a benefit amount of $ 356.6 million, which was included as a component of income tax expense from continuing operations. For fiscal year 2018, we re-measured certain deferred tax assets and liabilities based on the rates they are expected to reverse in the future which is generally 21%.   The amount recorded related to the re-measurement of our deferred tax balance was a benefit of $ 371.5 million for fiscal year 2018. As of December 31, 2017, the Company elected to reclassify the income tax effects of the Tax Reform Act in the amount of $ 8.7 million from AOCI to retained earnings under ASU 2018-02. In addition, the Company has adopted the "investment by investment" approach as our accounting policy with regard to releasing disproportionate income tax effects from AOCI. For fiscal year 2018, we calculated and recorded a one-time transition tax on earnings from foreign subsidiaries based on the post-1986 earnings and profits of our Canadian subsidiaries that were previously deferred from U.S. income taxes.   The effect of this one-time transition tax liability for our foreign subsidiaries resulted in an increase in income tax expense of $ 10.7 million for fiscal year 2018. No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations. Determining the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings not subject to the transition tax and additional outside basis difference in these entities (i.e., basis difference in excess of that subject to the one-time transition tax) is not practicable. The Tax Reform Act repeals the special rules with regard to distribution to shareholders from pre-1984 policyholders surplus account. This one-time tax was based on the balance of our pre-1984 policyholder surplus account. We reported the amount of our one-time tax liability for Phase Three Tax, resulting in an increase in income tax expense of $ 4.2 million for fiscal year 2018. The Company accounts for uncertainty in income taxes by recognizing the tax benefit or expense from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The Company measures the tax benefits and expenses recognized in the consolidated financial statements from such a position based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. F- 30   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) A reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period are as follows:     Unrecognized Tax Benefits     March 31,     2020   2019     (In thousands)           Unrecognized tax benefits beginning balance $ 37,201 $ 35,739 Revaluation based on change in after tax benefit   –   – Additions based on tax positions related to the current year   42   1,887 Reductions for tax positions of prior years   (7,606)   (46) Settlements   (5)   (379) Unrecognized tax benefits ending balance $ 29,632 $ 37,201 We recognize interest related to unrecognized tax benefits as interest expense, and penalties as income tax expenses. At March 31, 2020 and 2019, the amount of interest accrued on unrecognized tax benefits was $ 12.8 million and $ 9.5 million, net of tax. During the current year we recorded expense from interest in the amount of $ 3.3 million, net of tax. We file income tax returns in the U.S. federal jurisdiction, and various states and Canadian jurisdictions. While the Company has ongoing audits in Canada and various state jurisdictions, there have been no proposed or anticipated adjustments that would materially impact the financial statements. With some exceptions, we are no longer subject to audit for years prior to the fiscal year ended March 31, 2017.   Note 15.   Employee Benefit Plans Profit Sharing Plans We provide tax-qualified profit sharing retirement plans for the benefit of eligible employees, former employees and retirees in the United States and Canada. The plans are designed to provide employees with an accumulation of funds for retirement on a tax-deferred basis and provide for annual discretionary employer contributions. Amounts to be contributed are determined by the President and Chairman of the Board of Directors (the “Board”) of the Company under the delegation of authority from the Board, pursuant to the terms of the Profit Sharing Plan. No contributions were made to the profit sharing plan during fiscal 2020, 2019 or 2018. We also provide an employee savings plan which allows participants to defer income under Section 401(k) of the Internal Revenue Code of 1986. ESOP Plan We sponsor an Employee Stock Ownership Plan (“ESOP”) that generally covers all employees with one year or more of service. The ESOP began as a leveraged plan where shares were pledged as collateral for its debt which was originally funded by U-Haul. We made annual contributions to the ESOP equal to the ESOP’s debt service. As the debt was repaid, shares were released from collateral and allocated to active employees, based on the proportion of debt service paid in the year. ESOP shares were committed to be released monthly and ESOP compensation expense was recorded based on the current market price at the end of the month. These shares then become outstanding for the earnings per share computations.   In fiscal 2020 we delivered the plan and now contributions are made at the discretion of management with expense being recognized upon the decision to contribute.   ESOP compensation expense was $ 10.3 million, $ 11.3 million and $ 11.4 million for fiscal 2020, 2019 and 2018, respectively, which are included in operating expenses in the consolidated statements of operations. F- 31  
v3.20.1
Employee Benefit Plans
12 Months Ended
Mar. 31, 2020
Compensation and Retirement Disclosure [Abstract]  
Employee Benefit Plans Note 15.   Employee Benefit Plans Profit Sharing Plans We provide tax-qualified profit sharing retirement plans for the benefit of eligible employees, former employees and retirees in the United States and Canada. The plans are designed to provide employees with an accumulation of funds for retirement on a tax-deferred basis and provide for annual discretionary employer contributions. Amounts to be contributed are determined by the President and Chairman of the Board of Directors (the “Board”) of the Company under the delegation of authority from the Board, pursuant to the terms of the Profit Sharing Plan. No contributions were made to the profit sharing plan during fiscal 2020, 2019 or 2018. We also provide an employee savings plan which allows participants to defer income under Section 401(k) of the Internal Revenue Code of 1986. ESOP Plan We sponsor an Employee Stock Ownership Plan (“ESOP”) that generally covers all employees with one year or more of service. The ESOP began as a leveraged plan where shares were pledged as collateral for its debt which was originally funded by U-Haul. We made annual contributions to the ESOP equal to the ESOP’s debt service. As the debt was repaid, shares were released from collateral and allocated to active employees, based on the proportion of debt service paid in the year. ESOP shares were committed to be released monthly and ESOP compensation expense was recorded based on the current market price at the end of the month. These shares then become outstanding for the earnings per share computations.   In fiscal 2020 we delivered the plan and now contributions are made at the discretion of management with expense being recognized upon the decision to contribute.   ESOP compensation expense was $ 10.3 million, $ 11.3 million and $ 11.4 million for fiscal 2020, 2019 and 2018, respectively, which are included in operating expenses in the consolidated statements of operations. F- 31   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) Listed below is a summary of these financing arrangements as of fiscal year-end:     Outstanding as of   Interest Payments Financing Date   March 31, 2020   2020   2019   2018     (In thousands) June, 1991 $ – $ – $ 1 $ 1 July, 2009   –   9   17   26 February, 2016   –   229   190   242   Leveraged contributions to the Plan Trust during fiscal 2020, 2019 and 2018 were $ 5.6 million, $ 1.0 million and $ 1.0 million, respectively. In fiscal 2020, 2019 and 2018, the Company made non-leveraged contributions of $ 4.0 million, $ 5.2 and $ 11.0 million, respectively to the Plan Trust. In both fiscal 2020 and 2019, $ 0.0 million of dividends from unallocated shares were applied to debt. Shares held by the Plan were as follows:     Years Ended March 31,     2020   2019     (In thousands) Allocated shares   1,003   1,069 Unreleased shares - leveraged   –   16 Fair value of unreleased shares - leveraged $ – $ 6,019 Unreleased shares - non-leveraged   –   – Fair value of unreleased shares - non-leveraged $ – $ –   The fair value of unreleased shares issued prior to 1992 is defined as the historical cost of such shares. The fair value of unreleased shares issued subsequent to December 31, 1992 is defined as the trading value of such shares as of March 31, 2020 and March 31, 2019, respectively. During fiscal 2020, we released for allocation 16,558 leveraged shares and 13,989 non-leveraged shares. As of March 31, 2020, it is estimated there will be no shares committed to be released. Post Retirement and Post Employment Benefits We provide a health reimbursement benefit to our eligible U.S. employees and their eligible dependents upon retirement from the Company. The retiree must have attained age sixty-five and earned twenty years of full-time service upon retirement to be awarded the health reimbursement benefit. The health reimbursement benefit is capped at a $ 20,000 lifetime maximum per covered person. Reimbursements are coordinated with Medicare and any other medical policies in force. In addition, retirees who have attained age sixty-five and earned at least twenty years of full-time service upon retirement from the Company are entitled to group term life insurance benefits. The life insurance benefit is $ 3,000 plus $ 100 for each year of employment over twenty years. The benefits are not funded, and claims are paid as they are incurred. We use a March 31 measurement date for our post retirement benefit disclosures. The components of net periodic post retirement benefit cost were as follows:     Years Ended March 31,     2020   2019   2018     (In thousands) Service cost for benefits earned during the period $ 1,055 $ 1,108 $ 1,073 Other components of net periodic benefit costs:             Interest cost on accumulated postretirement benefit   964   943   869 Other components   90   70   58 Total other components of net periodic benefit costs   1,054   1,013   927 Net periodic postretirement benefit cost $ 2,109 $ 2,121 $ 2,000 F- 32   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued)   The fiscal 2020 and fiscal 2019 post retirement benefit liability included the following components:       Years Ended March 31,     2020   2019     (In thousands) Beginning of year $ 25,817 $ 23,316 Service cost for benefits earned during the period   1,055   1,108 Interest cost on accumulated post retirement benefit   964   943 Net benefit payments and expense   (93)   (979) Actuarial (gain) loss   (240)   1,429 Accumulated postretirement benefit obligation   27,503   25,817           Current liabilities   1,151   1,037 Non-current liabilities   26,352   24,780           Total post retirement benefit liability recognized in statement of financial position   27,503   25,817 Components included in accumulated other comprehensive income (loss):         Unrecognized net loss   (3,447)   (3,890) Cumulative net periodic benefit cost (in excess of employer contribution) $ 24,056 $ 21,927   The discount rate assumptions in computing the information above were as follows:       Years Ended March 31,     2020 2019 2018     (In percentages)   Accumulated postretirement benefit obligation   3.37 % 3.83 % 3.98 %   In December 2003, the Medicare Prescription Drug Improvement and Modernization Act of 2003 became law. Net periodic post retirement benefit cost above includes the effect of the subsidy. The discount rate represents the expected yield on a portfolio of high grade (AA to AAA rated or equivalent) fixed income investments with cash flow streams sufficient to satisfy benefit obligations under the plan when due. Fluctuations in the discount rate assumptions primarily reflect changes in U.S. interest rates. The assumed health care cost trend rate used to measure the accumulated postretirement benefit obligation as of the end of fiscal 2020 was 6.5 % in the initial year and was projected to decline annually to an ultimate rate of 4.5 % in fiscal 2038. The assumed health care cost trend rate used to measure the accumulated post retirement benefit obligation as of the end of fiscal 2019 (and used to measure the fiscal 2020 net periodic benefit cost) was 6.9 % in the initial year and was projected to decline annually to an ultimate rate of 4.5 % in fiscal 2038. If the estimated health care cost trend rate assumptions were increased by one percent, the accumulated post retirement benefit obligation as of fiscal year-end would increase by $ 246 thousand and the total of the service cost and interest cost components would increase by $ 25 thousand. A decrease in the estimated health care cost trend rate assumption of one percent would decrease the accumulated post retirement benefit obligation as of fiscal year-end by $ 278 thousand and the total of the service cost and interest cost components would decrease by $ 29 thousand. F- 33   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) Post employment benefits provided by us, other than upon retirement, are not material. Future net benefit payments are expected as follows:       Future Net Benefit Payments     (In thousands) Year-ended:     2021 $ 1,151 2022   1,350 2023   1,547 2024   1,753 2025   1,965 2026 through 2029   11,581 Total $ 19,347   Note 16.   Fair Value Measurements Certain assets and liabilities are recorded at fair value on the consolidated balance sheets and are measured and classified based upon a three-tiered approach to valuation. Financial assets and liabilities recorded at fair value and are classified and disclosed in one of the following three categories: Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;   Level 2 – Quoted prices for identical or similar financial instruments in markets that are not considered to be active, or similar financial instruments for which all significant inputs are observable, either directly or indirectly, or inputs other than quoted prices that are observable, or inputs that are derived principally from or corroborated by observable market data through correlation or other means; and Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and are unobservable. These reflect management’s assumptions about the assumptions a market participant would use in pricing the asset or liability. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Fair values of cash equivalents approximate carrying value due to the short period of time to maturity. Fair values of short-term investments, investments available-for-sale, long-term investments, mortgage loans and notes on real estate, and interest rate swap contracts are based on quoted market prices, dealer quotes or discounted cash flows. Fair values of trade receivables approximate their recorded value. Our financial instruments that are exposed to concentrations of credit risk consist primarily of temporary cash investments, trade receivables, reinsurance recoverables and notes receivable. Limited credit risk exists on trade receivables due to the diversity of our customer base and their dispersion across broad geographic markets. We place our temporary cash investments with financial institutions and limit the amount of credit exposure to any one financial institution. We have mortgage receivables, which potentially expose us to credit risk. The portfolio of notes is principally collateralized by self-storage facilities and commercial properties. We have not experienced any material losses related to the notes from individual or groups of notes in any particular industry or geographic area. The estimated fair values were determined using the discounted cash flow method and using interest rates currently offered for similar loans to borrowers with similar credit ratings. The carrying amount of long-term debt and short-term borrowings are estimated to approximate fair value as the actual interest rate is consistent with the rate estimated to be currently available for debt of similar term and remaining maturity. F- 34  
v3.20.1
Fair Value Measurements
12 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements Note 16.   Fair Value Measurements Certain assets and liabilities are recorded at fair value on the consolidated balance sheets and are measured and classified based upon a three-tiered approach to valuation. Financial assets and liabilities recorded at fair value and are classified and disclosed in one of the following three categories: Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;   Level 2 – Quoted prices for identical or similar financial instruments in markets that are not considered to be active, or similar financial instruments for which all significant inputs are observable, either directly or indirectly, or inputs other than quoted prices that are observable, or inputs that are derived principally from or corroborated by observable market data through correlation or other means; and Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and are unobservable. These reflect management’s assumptions about the assumptions a market participant would use in pricing the asset or liability. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Fair values of cash equivalents approximate carrying value due to the short period of time to maturity. Fair values of short-term investments, investments available-for-sale, long-term investments, mortgage loans and notes on real estate, and interest rate swap contracts are based on quoted market prices, dealer quotes or discounted cash flows. Fair values of trade receivables approximate their recorded value. Our financial instruments that are exposed to concentrations of credit risk consist primarily of temporary cash investments, trade receivables, reinsurance recoverables and notes receivable. Limited credit risk exists on trade receivables due to the diversity of our customer base and their dispersion across broad geographic markets. We place our temporary cash investments with financial institutions and limit the amount of credit exposure to any one financial institution. We have mortgage receivables, which potentially expose us to credit risk. The portfolio of notes is principally collateralized by self-storage facilities and commercial properties. We have not experienced any material losses related to the notes from individual or groups of notes in any particular industry or geographic area. The estimated fair values were determined using the discounted cash flow method and using interest rates currently offered for similar loans to borrowers with similar credit ratings. The carrying amount of long-term debt and short-term borrowings are estimated to approximate fair value as the actual interest rate is consistent with the rate estimated to be currently available for debt of similar term and remaining maturity. F- 34   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) Other investments including short-term investments are substantially current or bear reasonable interest rates. As a result, the carrying values of these financial instruments approximate fair value. The carrying values and estimated fair values for the financial instruments stated above and their placement in the fair value hierarchy are as follows:     Fair Value Hierarchy Year Ended March 31, 2020   Carrying Value   Level 1   Level 2   Level 3   Total Estimated Fair Value     (In thousands) Assets                     Reinsurance recoverables and trade receivables, net $ 186,672 $ – $ – $ 186,672 $ 186,672 Mortgage loans, net   262,688   –   –   262,688   262,688 Other investments   97,685   –   –   97,685   97,685 Total $ 547,045 $ – $ – $ 547,045 $ 547,045                                             Liabilities                     Notes, loans and finance/capital leases payable $ 4,651,068 $ – $ 4,651,068 $ – $ 4,342,308 Total $ 4,651,068 $ – $ 4,651,068 $ – $ 4,342,308         Fair Value Hierarchy Year Ended March 31, 2019   Carrying Value   Level 1   Level 2   Level 3   Total Estimated Fair Value     (In thousands) Assets                     Reinsurance recoverables and trade receivables, net $ 224,785 $ – $ – $ 224,785 $ 224,785 Mortgage loans, net   225,829   –   –   225,829   225,829 Other investments   74,907   –   –   74,907   74,907 Total $ 525,521 $ – $ – $ 525,521 $ 525,521                                             Liabilities                     Notes, loans and finance/capital leases payable $ 4,192,243   – $ 4,192,243 $ – $ 4,192,243 Total $ 4,192,243 $ – $ 4,192,243 $ – $ 4,192,243 F- 35   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) The following tables represent the financial assets and liabilities on the condensed consolidated balance sheets as of March 31, 2020 and 2019, that are measured at fair value on a recurring basis and the level within the fair value hierarchy.   Year Ended March 31, 2020   Total   Level 1   Level 2   Level 3     (In thousands) Assets                 Short-term investments $ 369,279 $ 368,968 $ 311 $ – Fixed maturities - available for sale   2,466,048   7,156   2,458,731   161 Preferred stock   6,675   6,675   –   – Common stock   20,015   20,015   –   – Derivatives   5,944   5,944   –   – Total $ 2,867,961 $ 408,758 $ 2,459,042 $ 161                                     Liabilities                 Derivatives $ 8,214 $ – $ 8,214 $ – Total $ 8,214 $ – $ 8,214 $ –   Year Ended March 31, 2019   Total   Level 1   Level 2   Level 3     (In thousands) Assets                 Short-term investments $ 463,847 $ 463,599 $ 248 $ – Fixed maturities - available for sale   2,209,761   7,327   2,202,213   221 Preferred stock   8,257   8,257   –   – Common stock   17,379   17,379   –   – Derivatives   1,607   1,468   139   – Total $ 2,700,851 $ 498,030 $ 2,202,600 $ 221                                     Liabilities                 Derivatives $ – $ – $ – $ – Total $ – $ – $ – $ –   The fair value measurements of our assets using significant unobservable inputs (Level 3) were $0.2 million and $0.3 million as of March 31, 2020 and 2019, respectively.   F- 36  
v3.20.1
Reinsurance and Policy Benefits and Losses, Claims and Loss Expenses Payable
12 Months Ended
Mar. 31, 2020
Disclosure Text Block [Abstract]  
Reinsurance and Policy Benefits and Losses, Claims and Loss Expenses Payable F- 36   amerco and consolidated subsidiaries notes to consolidated financial statements – (continued) Note 17.   Reinsurance and Policy Benefits and Losses, Claims and Loss Expenses Payable During their normal course of business, our insurance subsidiaries assume and cede reinsurance on both a coinsurance and a risk premium basis. They also obtain reinsurance for that portion of risks exceeding their retention limits. The maximum amount of life insurance retained on any one life is $ 125,000 .       Direct Amount (a)   Ceded to Other Companies   Assumed from Other Companies   Net Amount (a)   Percentage of Amount Assumed to Net       (In thousands)   Year ended December 31, 2019                       Life insurance in force $ 957,280 $ 7 $ 441,563 $ 1,398,836   32 % Premiums earned:                       Life $ 53,289 $ 1 $ 5,629 $ 58,917   10 % Accident and health   66,863   226   1,563   68,200   2 % Annuity   65   –   794   859   92 % Property and casualty   69,126   –   15   69,141   – % Total $ 189,343 $ 227 $ 8,001 $ 197,117                               Year ended December 31, 2018                       Life insurance in force $ 941,822 $ 207 $ 548,152 $ 1,489,767   37 % Premiums earned:                       Life $ 51,691 $ (1) $ (69,616) $ (17,924)   388 % Accident and health   77,813   267   1,851   79,397   2 % Annuity   1,221   –   794   2,015   39 % Property and casualty   60,848