AMERCO /NV/, 10-Q filed on 05 Aug 20
v3.20.2
Document and Entity Information - shares
3 Months Ended
Jun. 30, 2020
Aug. 03, 2020
Document and Entity Information [Abstract]    
Entity Registrant Name AMERCO  
Entity Central Index Key 0000004457  
Entity Current Reporting Status Yes  
Entity Small Business false  
Current Fiscal Year End Date --03-31  
Entity Filer Category Large Accelerated Filer  
Entity Emerging Growth Company false  
Document Fiscal Year Focus 2021  
Trading Symbol UHAL  
Document Type 10-Q  
Document Fiscal Period Focus Q1  
Document Period End Date Jun. 30, 2020  
Amendment Flag false  
Entity Common Stock, Shares Outstanding   19,607,788
Entity Shell Company false  
Entity Interactive Data Current Yes  
Entity File Number 001-11255  
Entity Tax Identification Number 88-0106815  
Entity address, address line one 5555 Kietzke Lane  
Entity address, address line two Suite 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  
Entity Incorporation, State or Country Code NV  
Title of 12(b) Security Common Stock , $0.25 par value  
Security Exchange Name NASDAQ  
Document Quarterly Report true  
Document Transition Report false  
v3.20.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2020
Mar. 31, 2020
ASSETS:    
Cash and cash equivalents $ 825,074 $ 494,352
Reinsurance recoverables and trade receivables, net 208,371 186,672
Inventories, net 100,835 101,083
Prepaid expenses 585,879 562,904
Investments, fixed maturities and marketable equities 2,393,522 2,492,738
Investments, other 395,123 360,373
Deferred policy acquisition costs, net 117,123 103,118
Other assets 70,415 71,956
Right of use Assets - Financing 1,026,928 1,080,353
Right of use Assets - Operating 106,682 106,631
Related party assets 9,406 34,784
Subtotal assets 5,839,358 5,594,964
Property, plant and equipment, at cost:    
Land 1,043,952 1,032,945
Buildings and improvements 4,752,816 4,663,461
Furniture and equipment 754,641 752,363
Property, plant and equipment (gross) 10,684,750 10,556,222
Less: Accumulated depreciation (2,811,749) (2,713,162)
Total property, plant and equipment 7,873,001 7,843,060
Total assets 13,712,359 13,438,024
Liabilities:    
Accounts payable and accrued expenses 582,356 554,353
Notes, loans and leases payable 4,777,963 4,621,291
Financing lease liability 666,316  
Operating lease liability 106,614 106,443
Policy benefits and losses, claims and loss expenses payable 998,762 997,647
Liabilities from investment contracts 1,833,617 1,802,217
Other policyholders' funds and liabilities 6,764 10,190
Deferred income 42,789 31,620
Deferred income taxes, net 1,106,312 1,093,543
Total liabilities 9,455,177 9,217,304
Commitments and contingencies (notes 4, 8 and 9)
Stockholders' equity:    
Additional paid-in capital 453,819 453,819
Accumulated other comprehensive loss (13,732) 34,652
Retained earnings 4,484,248 4,399,402
Unearned employee stock ownership plan shares 0 0
Total stockholders' equity 4,257,182 4,220,720
Total liabilities and stockholders' equity 13,712,359 13,438,024
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
Serial 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 513,623 511,520
Rental Trucks [Member]    
Property, plant and equipment, at cost:    
Property subject to or available for operating lease, gross $ 3,619,718 $ 3,595,933
v3.20.2
Condensed Consolidated Balance Sheets Parenthetical
Jun. 30, 2020
$ / shares
shares
Series Preferred Stock With or Without Par Value [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
Serial Common Stock With or Without Par Value [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
v3.20.2
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Revenues:    
Self-moving equipment rentals $ 654,285 $ 748,596
Self-storage revenues 108,955 98,274
Self moving and self-storage products and service sales 91,350 80,026
Property management fees 7,347 7,156
Life insurance premiums 30,908 32,710
Property and casualty insurance premiums 13,734 13,424
Investment income interest and dividend 16,982 35,749
Other revenue 63,676 63,314
Total revenues 987,237 1,079,249
Costs and expenses:    
Operating expenses 492,662 534,472
Commission expenses 69,175 80,899
Cost of sales 52,831 48,929
Benefits and losses 39,577 49,006
Amortization of deferred policy acquisition costs 6,888 6,064
Lease expense 6,603 7,036
Depreciation, net of (gains) losses on disposals 165,671 140,600
Net (gains) losses on disposal of real estate (256) (1,622)
Total costs and expenses 833,151 865,384
Earnings from operations 154,086 213,865
Other components of net periodic benefit costs (247) (263)
Interest expense (39,521) (38,888)
Pretax earnings 114,318 174,714
Income tax expense (26,592) (42,292)
Earnings available to common stockholders $ 87,726 $ 132,422
Basic and diluted earnings per common share $ 4.47 $ 6.76
Weighted average common shares outstanding: basic and diluted 19,607,788 19,597,697
v3.20.2
Condensed Consolidated Statements of Operations Parenthetical - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Depreciation:    
Net gain on sale of real and personal property $ (1,069) $ (16,678)
Related party:    
Related party revenues, net of eliminations 7,347 7,156
Related party, costs and expenses, net of eliminations $ 15,989 $ 17,860
v3.20.2
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Comprehensive income (loss) (pretax):    
Pretax earnings (loss) $ 114,318 $ 174,714
Comprehensive income (loss) (tax effect):    
Income tax expense (26,592) (42,292)
Comprehensive income (loss) (net of tax):    
Net earnings 87,726 132,422
Other comprehensive income (loss):    
Foreign currency translation (pretax) (2,917) 2,982
Foreign currency translation (tax effect) 0 0
Foreign currency translation (net of tax) (2,917) 2,982
Unrealized gain (loss) on investments (pretax) (58,962) 51,827
Unrealized gain (loss) on investments (tax effect) 13,463 (11,039)
Unrealized gain (loss) on investments (net of tax) (45,499) 40,788
Change in fair value of cash flow hedges (pretax) (705) (1,194)
Change in fair value of cash flow hedges (tax effect) 173 293
Change in fair value of cash flow hedges (net of tax) (532) (901)
Amounts reclassifed into earnings on hedging activities (pretax) 747 (59)
Amounts reclassified into earnings on hedging activities (tax effect) (183) 15
Amounts reclassified into earnings on hedging activities (net of tax) 564 (44)
Total other comprehensive income (loss) (pretax) (61,837) 53,556
Total other comprehensive income (loss) (tax effect) 13,453 (10,731)
Total other comprehensive income (loss) (net of tax) (48,384) 42,825
Total comprehensive income (pretax) 52,481 228,270
Total comprehensive income (tax effect) (13,139) (53,023)
Total comprehensive income (net of tax) $ 39,342 $ 175,247
v3.20.2
Condensed 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, beginning of period at Mar. 31, 2019 $ 3,692,389 $ 10,497 $ 453,326 $ (66,698) $ 3,976,962 $ (525,653) $ (151,997) $ (4,048)
Cosolidated statement of change in equity                
Increase in market value of released ESOP shares 209 0 209 0 0 0 0 0
Release of unearned ESOP shares 1,309 0 0 0 0 0 0 1,309
Purchase of ESOP shares (131) 0 0 0 0 0 0 (131)
Foreign currency translation 2,982 0 0 2,982 0 0 0 0
Unrealized net gain (loss) on investments, net of tax 40,788 0 0 40,788 0 0 0 0
Change in fair value of cash flow hedges, net of tax (901) 0 0 (901) 0 0 0 0
Amounts reclassified into earnings on hedging activities (44) 0 0 (44) 0 0 0 0
Net earnings 132,422 0 0 0 132,422 0 0 0
Net activity 176,634 0 209 42,825 132,422 0 0 1,178
Balance, end of period at Jun. 30, 2019 3,869,023 10,497 453,535 (23,873) 4,109,384 (525,653) (151,997) (2,870)
Balance, beginning of period at Mar. 31, 2020 4,220,720 10,497 453,819 34,652 4,399,402 (525,653) (151,997) 0
Cosolidated statement of change in equity                
Adjustment for adoption of ASU 2016-13 (2,880) 0 0 0 (2,880) 0 0 0
Increase in market value of released ESOP shares 0 0 0 0 0 0 0 0
Release of unearned ESOP shares 0 0 0 0 0 0 0 0
Purchase of ESOP shares 0 0 0 0 0 0 0 0
Foreign currency translation (2,917) 0 0 (2,917) 0 0 0 0
Unrealized net gain (loss) on investments, net of tax (45,499) 0 0 (45,499) 0 0 0 0
Change in fair value of cash flow hedges, net of tax (532) 0 0 (532) 0 0 0 0
Amounts reclassified into earnings on hedging activities 564 0 0 564 0 0 0 0
Net earnings 87,726 0 0 0 87,726 0 0 0
Net activity 36,462 0 0 (48,384) 84,846 0 0 0
Balance, end of period at Jun. 30, 2020 $ 4,257,182 $ 10,497 $ 453,819 $ (13,732) $ 4,484,248 $ (525,653) $ (151,997) $ 0
v3.20.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Cash flow from operating activities:    
Net earnings $ 87,726 $ 132,422
Adjustments to reconcile net earnings to cash provided by operations:    
Depreciation 166,740 157,278
Amortization of deferred policy acquisition costs 6,888 6,064
Amortization of premiums and accretion of discounts related to investments, net 3,550 3,275
Amortization of debt issuance costs 1,297 1,053
Interest credited to policyholders 7,667 14,218
Change in allowance for losses on trade receivables 60 (162)
Change in allowance for inventory reserves (99) 367
Net gain on sale of real and personal property (1,069) (16,678)
Net losses on disposal of real estate (256) (1,622)
Net (gain) loss on sale of investments 2,014 (4,267)
Net losses on equity investments 3,989 (2,215)
Deferred income tax 27,534 29,763
Net change in other operating assets and liabilities:    
Reinsurance recoverables and trade receivables (23,594) (18,215)
Inventories 350 2,110
Prepaid expenses (22,831) (15,720)
Capitalization of deferred policy acquisition costs (7,308) (5,090)
Other assets 74 3,337
Related party assets 7,329 (1,364)
Accounts payable and accrued expenses 58,273 89,716
Policy benefits and losses, claims and loss expenses payable 528 2,318
Other policyholders' funds and liabilities (3,426) (5,281)
Deferred income 14,898 8,527
Related party liabilities (249) 1,092
Net cash provided by operating activities 330,085 380,926
Cash flow from investing activities:    
Escrow deposits 1,401 1,968
Purchase of:    
Property, plant and equipment (249,740) (847,248)
Short term investments (9,625) (8,689)
Fixed maturity investments (94,193) (76,515)
Real estate (192) (328)
Mortgage loans (33,300) (9,410)
Proceeds from sale of:    
Property, plant and equipment 76,412 160,754
Short term investments 2,448 6,982
Fixed maturity investments 110,165 38,258
Real estate 0 311
Mortgage loans 1,432 1,678
Net cash used by investing activities (195,192) (732,239)
Cash flow from financing activities:    
Borrowings from credit facilities 377,051 333,700
Principal repayments on credit facilities (154,089) (61,104)
Payment of debt issuance costs (1,677) (5)
Capital lease payments (68,554) (94,446)
Employee stock ownership plan shares 0 (131)
Common stock dividends paid 0 (9,796)
Net contribution from (to) related party 18,599 0
Investment contract deposits 75,366 61,515
Investment contract withdrawals (51,633) (37,054)
Net cash provided by (used in) financing activities 195,063 192,679
Effects of exchange rate on cash 766 4,764
Increase (decrease) in cash and cash equivalents 330,722 (153,870)
Cash and cash equivalents at the beginning of period 494,352 673,701
Cash and cash equivalents at the end of the period $ 825,074 $ 519,831
v3.20.2
Basis of Presentation
3 Months Ended
Jun. 30, 2020
Disclosure Text Block [Abstract]  
1. Basis of Presentation AMERCO, a Nevada corporation (“AMERCO”), has a first fiscal quarter that ends on the 30 th of June for each year that is referenced. Our insurance company subsidiaries have a first quarter that ends on the 31 st of March 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 presentation of 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 2020 and 2019 correspond to fiscal 2021 and 2020 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. The condensed consolidated balance sheet as of June 30, 2020 and the related condensed consolidated statements of operations, comprehensive income (loss), stockholders' equity and cash flows for the first quarter of fiscal 2021 and 2020 are unaudited. In our opinion, all adjustments necessary for the fair presentation of such condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. Interim results are not necessarily indicative of results for a full year. The information in this Quarterly Report on Form 10-Q (“Quarterly Report”) should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations and financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2020. 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. The Moving and Storage operating segment (“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. The Property and Casualty Insurance operating segment (“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 insurance 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. 6   amerco and consolidated subsidiaries notes to condensed consolidated financial statements - (continued) The Life Insurance operating segment (“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. Summary of Significant Accounting Polices Refer to our Annual Report on Form 10-K for the fiscal year ended March 31, 2020 for a summary of significant accounting policies. At the beginning of the first quarter of fiscal 2021, we adopted Accounting Standards Update 2016-13 , Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. In addition, new disclosures are required. The new standard requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. It also limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases   We adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost. We modified our policy on accounting for allowance for doubtful accounts on trade accounts receivable. We perform ongoing credit evaluations of our customers and assesses each customer's credit worthiness. We monitor collections and payments from our customers and maintains an allowance for doubtful accounts based upon applying an expected credit loss rate to receivables based on the historical loss rate from similar high risk customers adjusted for current conditions, including any specific customer collection issues identified, and forecasts of economic conditions. Delinquent account balances are written off after management has determined that the likelihood of collection is remote. The adoption of ASU 2016-13 resulted in a cumulative-effect adjustment to the opening balance of retained earnings of $2.9 million and did not have a material impact on our results of operations, financial condition or liquidity. Please see Note 16, Allowance for Credit Losses, of the Notes to Condensed Consolidated Financial Statements.
v3.20.2
Earnings Per Share
3 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]  
2. 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 8,216 as of June 30, 2019.   As of June 20, 2020, all of these shares have been released.
v3.20.2
Investments
3 Months Ended
Jun. 30, 2020
Investments Debt Equity Securities [Abstract]  
3. 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 as of June 30, 2020 and March 31, 2020. 7   amerco and consolidated subsidiaries notes to condensed consolidated financial statements - (continued) Available-for-Sale Investments Available-for-sale investments as of June 30, 2020 were as follows:       Amortized Cost   Gross Unrealized Gains   Gross Unrealized Losses More than 12 Months   Gross Unrealized Losses Less than 12 Months   Allowance for Expected Credit Losses   Estimated Market Value     (Unaudited)     (In thousands) U.S. treasury securities and government obligations $ 84,814 $ 12,192 $ - $ - $ - $ 97,006 U.S. government agency mortgage-backed securities   126,599   3,458   (1)   (39)   -   130,017 Obligations of states and political subdivisions   270,476   21,364   (141)   (2)   -   291,697 Corporate securities   1,636,025   66,359   (1,759)   (37,168)   (5,407)   1,658,050 Mortgage-backed securities   197,599   2,485   (2)   (6,031)   -   194,051 Redeemable preferred stocks   1,493   14   -   (5)   -   1,502   $ 2,317,006 $ 105,872 $ (1,903) $ (43,245) $ (5,407) $ 2,372,323   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   We sold available-for-sale securities with a fair value of $ 109.6 million during the first quarter of fiscal 2021. The gross realized gains on these sales totaled $ 2.8 million. We adopted   ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments as of April 1, 2020. For available-for-sale debt securities in an unrealized loss position, we first assess whether the security is below investment grade.   For securities that are below investment grade, we evaluate whether the decline in fair value has resulted from credit losses or other factors such as the interest rate environment. Declines in value due to credit are recognized as an allowance. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse market conditions specifically related to the security, among other factors.   If this assessment indicates that a credit loss exists, cumulative default rates based on ratings are used to determine the potential cost of default, by year.   The present value of these potential costs is then compared to the amortized cost of the security to determine the credit loss, limited by the amount that the fair value is less than the amortized cost basis. 8   amerco and consolidated subsidiaries notes to condensed consolidated financial statements - (continued) Declines in fair value that have not been recorded through an allowance for credit losses, such as declines due to changes in market interest rates, are recorded through accumulated other comprehensive income, net of applicable taxes. If we intend to sell a security, or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, the security is written down to its fair value and the write down is charged against the allowance for credit losses, with any incremental impairment reported in earnings. Reversals of the allowance for credit losses are permitted and should not exceed the allowance amount initially recognized. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. There were no incremental impairment charges recorded during the quarter ended June 30, 2020. The adjusted cost and estimated market value of available-for-sale investments by contractual maturity were as follows:       June 30, 2020   March 31, 2020     Amortized Cost   Estimated Market Value   Amortized Cost   Estimated Market Value     (Unaudited)         (In thousands) Due in one year or less $ 141,789 $ 141,448 $ 128,747 $ 129,420 Due after one year through five years   537,400   541,406   547,821   566,934 Due after five years through ten years   605,305   618,209   636,036   678,636 Due after ten years   833,420   875,707   832,334   897,371     2,117,914   2,176,770   2,144,938   2,272,361                   Mortgage-backed securities   197,599   194,051   187,784   193,687 Redeemable preferred stocks   1,493   1,502   1,493   1,565   $ 2,317,006 $ 2,372,323 $ 2,334,215 $ 2,467,613   As of June 30, 2020 and March 31, 2020, 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:       June 30, 2020   March 31, 2020     Amortized Cost   Estimated Market Value   Amortized Cost   Estimated Market Value     (Unaudited)             (In thousands)                   Common stocks $ 9,775 $ 16,595 $ 9,775 $ 20,015 Non-redeemable preferred stocks   5,076   4,604   5,076   5,110   $ 14,851 $ 21,199 $ 14,851 $ 25,125   9  
v3.20.2
Borrowings
3 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
4. Borrowings Long Term Debt Long term debt was as follows:                       June 30,   March 31,   2021 Rates (a)     Maturities   2020   2020                 (Unaudited)                     (In thousands) Real estate loan (amortizing term)       1.68 %       2023 $ 90,413 $ 92,913 Senior mortgages 3.11 % - 6.62 %   2021 - 2038   2,015,495   2,029,878 Real estate loans (revolving credit) 1.58 % - 3.25 %   2022 - 2025   535,000   519,000 Fleet loans (amortizing term) 2.04 % - 4.66 %   2020 - 2027   200,983   224,089 Fleet loans (revolving credit)       1.32 %   2022 - 2024   570,000   567,000 Finance/capital leases (rental equipment) 1.92 % - 5.04 %   2020 - 2026   666,316   734,870 Finance liability (rental equipment) 1.63 % - 4.22 %   2020   2028   447,416   398,834 Other obligations 2.50 % - 8.00 %   2020 - 2049   282,524   84,484 Notes, loans and finance/capital leases payable                   4,808,147   4,651,068 Less: Debt issuance costs                     (30,184)   (29,777) Total notes, loans and finance/capital leases payable, net         $ 4,777,963 $ 4,621,291                             (a) Interest rates as of June 30, 2020, including 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 June 30, 2020, the applicable LIBOR was 0.18 % and the applicable margin was 1.50 %, the sum of which was 1.68 %. 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. 10   amerco and consolidated subsidiaries notes to condensed 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. As of June 30, 2020, the outstanding balance of these loans in the aggregate was $ 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 June 30, 2020, the applicable LIBOR was between 0.17 % and 0.18 % and the margin was between 1.25 % and 1.50 %, the sum of which was between 1.42 % and 1.67 %. Certain loans have interest rate swaps fixing the rate between 3.03 % and 3.14 % based on current margins. 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 $ 200.0 million, which can be increased to $ 300.0 million by bringing in other lenders. As of June 30, 2020, the outstanding balance was $ 150.0 million. This loan agreement provides for revolving loans, subject to the terms of the loan agreement. The final maturity of this loan is April 2023. This loan requires monthly interest payments with the unpaid loan balance and accrued and unpaid interest due at maturity. As of June 30, 2020, the applicable LIBOR was 1.00 % and the margin was 2.25 %, the sum of which was 3.25 %. 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. 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 2.04 % 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 June 30, 2020, the applicable LIBOR was 0.17 % and the margin was 1.15 %, the sum of which was 1.32 %. 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. The historical capital lease balance was reclassified to Right of use (“ROU”) 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 and are collateralized by our rental fleet. There were no new financing leases, as assessed under the new leasing guidance, entered into during the quarter ended June 30, 2020. 11   amerco and consolidated subsidiaries notes to condensed 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, 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 1.63 % to 4.22 %. These finance liabilities are collateralized by our rental fleet.   Other Obligations In May 2020, AMERCO, entered into a $ 200.0 million secured credit facility with PNC Bank, as agent and lead arranger of a syndicate of lenders.   The interest rate, per the provision of the loan agreement, is the applicable LIBOR plus the applicable margin.   As of June 30, 2020, the applicable LIBOR was 0.50 % and the margin was 2.00 %, the sum of which was 2.50 %. The LIBOR has a floor of 0.50 %. As of June 30, 2020 the balance of this note was $ 200.0 million. The final maturity of this loan is May 2021 and will be paid down as the Company receives federal income tax refunds. 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 June 30, 2020, the aggregate outstanding principal balance of the U-Notes ® issued was $ 85.2 million, of which $ 2.7 million was 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 deposits with Oxford. As of March 31, 2020, the deposits had an aggregate balance of $ 60.0 million, for which Oxford pays fixed interest rates between 0.69 % and 2.95 % with maturities between September 28, 2020 and March 29, 2025. As of March 31, 2020, available-for-sale investments held with the FHLB totaled $ 191.4 million, of which $ 69.5 million were pledged as collateral to secure the outstanding deposits. The balances of these deposits 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 June 30, 2020 for the next five years and thereafter are as follows:     Year Ended June 30,     2021   2022   2023   2024   2025   Thereafter     (Unaudited)     (In thousands) Notes, loans and finance/capital leases payable, secured $ 683,816 $ 770,912 $ 778,383 $ 793,838 $ 290,267 $ 1,490,931 12   amerco and consolidated subsidiaries notes to condensed consolidated financial statements - (continued) Interest on Borrowings Interest Expense Components of interest expense include the following:     Quarter Ended June 30,     2020   2019     (Unaudited)     (In thousands) Interest expense $ 41,911 $ 43,331 Capitalized interest   (4,434)   (5,499) Amortization of transaction costs   1,297   1,053 Interest expense resulting from cash flow hedges   747   3 Total interest expense $ 39,521 $ 38,888 Interest paid in cash, including payments related to derivative contracts, amounted to $ 39.4 million and $ 40.5 million for the first quarter of fiscal 2021 and 2020, respectively. Interest Rates Interest rates and Company borrowings were as follows:     Revolving Credit Activity       Quarter Ended June 30,       2020   2019       (Unaudited)       (In thousands, except interest rates)   Weighted average interest rate during the quarter   2.02 % 3.73 % Interest rate at the end of the quarter   1.67 % 3.69 % Maximum amount outstanding during the quarter $ 1,175,000 $ 990,000   Average amount outstanding during the quarter $ 1,161,385 $ 967,358   Facility fees $ 4 $ 62   5. 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 our 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 balance sheet were as follows:       Derivatives Fair Values as of     June 30, 2020   March 31, 2020     (Unaudited)         (In thousands) Interest rate contracts designated as hedging instruments:         Assets $ - $ - Liabilities $ 8,170 $ 8,214 Notional amount $ 235,000 $ 235,000 13  
v3.20.2
Derivatives
3 Months Ended
Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
5. 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 our 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 balance sheet were as follows:       Derivatives Fair Values as of     June 30, 2020   March 31, 2020     (Unaudited)         (In thousands) Interest rate contracts designated as hedging instruments:         Assets $ - $ - Liabilities $ 8,170 $ 8,214 Notional amount $ 235,000 $ 235,000 13   amerco and consolidated subsidiaries notes to condensed consolidated financial statements - (continued)       The Effect of Interest Rate Contracts on the Statements of Operations for the Quarters Ended         June 30, 2020   June 30, 2019     (Unaudited)     (In thousands) (Gain) loss recognized in AOCI on interest rate contracts $ (42) $ 1,253 (Gain) loss reclassified from AOCI into income $ 747 $ 3   Gains or losses recognized in income on derivatives are recorded as interest expense in the condensed consolidated statements of operations. During the first quarter of fiscal 2021, we recognized an increase in the fair value of our cash flow hedges of $0.5 million, net of taxes. During the first quarter of fiscal 2021, we reclassified $0.7 million from AOCI to interest expense. As of June 30, 2020, we expect to reclassify $ 3.7 million of net gains on interest rate contracts from AOCI to earnings as interest expense over the next twelve months.
v3.20.2
Accumulated Other Comprehensive Income (Loss)
3 Months Ended
Jun. 30, 2020
Disclosure Text Block [Abstract]  
6. Comprehensive Income (Loss) A summary of accumulated other comprehensive income (loss) 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)     (Unaudited)     (In thousands) Balance at March 31, 2020 $ (47,235) $ 90,684 $ (6,196) $ (2,601) $ 34,652 Foreign currency translation   (2,917)   -   -   -   (2,917) Unrealized net gain on investments   -   (45,499)   -   -   (45,499) Change in fair value of cash flow hedges   -   -   (532)   -   (532) Amounts reclassified into earnings on hedging activities   -   -   564   -   564 Other comprehensive income (loss)   (2,917)   (45,499)   32   -   (48,384) Balance at June 30, 2020 $ (50,152) $ 45,185 $ (6,164) $ (2,601) $ (13,732) . 7. Stockholders' Equity On June 8, 2016, our stockholders' approved the 2016 AMERCO Stock Option Plan (Shelf Stock Option Plan). As of June 30, 2020 no awards had been issued under this plan. 8. Leases Lessor We have determined that revenues derived by providing self-moving equipment rentals, self-storage rentals and certain other revenues, including U-Box rentals, are within the scope of the accounting guidance contained in Topic 842. Our self-moving equipment rental related revenues have been accounted for under the revenue accounting standard Topic 606, until the adoption of Topic 842. For the periods after April 1, 2019, we combined all lease and non-lease components of lease contracts for which the timing and pattern of transfer are the same and the lease component meets the classification of an operating lease, and account for them in accordance with Topic 842. The revenue streams accounted for in accordance with Topic 842 are recognized evenly over the period of rental. Please see Note 15, Revenue Recognition, to the Notes to Condensed Consolidated Financial Statements. 14   amerco and consolidated subsidiaries notes to condensed consolidated financial statements - (continued) Lessee We determine if an arrangement is a lease at inception. Operating leases, which are comprised primarily of storage rental locations, are included in ROU assets - operating and operating lease liability in our condensed consolidated balance sheet dated June 30, 2020 and March 31, 2020. Finance leases, which are comprised primarily of rental equipment leases, are included in ROU assets - financing, net, and notes, loans and finance/capital leases payable, net in our balance sheet dated June 30, 2020 and March 31, 2020. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the expected remaining lease term. We use our incremental borrowing rate based on information available at commencement date including the rate for a fully collateralized loan that can either be fully amortizing or financed with a residual at the end of the lease term, for a borrower with similar credit quality in order to determine the present value of lease payments. Our lease terms may include options to extend or terminate the lease, which are included in the calculation of ROU assets when it is reasonably certain that we will exercise those options. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally not accounted for separately. Additionally, for certain leases, we apply a portfolio approach to account for the operating lease ROU assets and liabilities as the leases are similar in nature and have nearly identical contract provisions. The standard also changed the manner by which we account for our equipment sale/leaseback transactions.   Based on our assessment, the lease transactions are classified as financing leases, and therefore the transactions do not qualify as a sale.   Pursuant to the guidance, new sale leaseback transactions that fail to qualify as a sale will be accounted for as a financial liability.   Please see Note 4, Borrowings, of the Notes to Condendsed Consolidated Finanical Statements for additional information. The following table shows the components of our ROU assets, net:     As of June 30, 2020     (Unaudited)     (In thousands)                   Finance   Operating   Total Buildings and improvements $ - $ 130,241 $ 130,241 Furniture and equipment   21,111   -   21,111 Rental trailers and other rental equipment   115,967   -   115,967 Rental trucks   1,697,339   -   1,697,339 Right-of-use assets, gross   1,834,417   130,241   1,964,658 Less: Accumulated depreciation   (807,489)   (23,559)   (831,048) Right-of-use assets, net $ 1,026,928 $ 106,682 $ 1,133,610       Finance   Operating               Weighted average remaining lease term (years)   4   14   Weighted average discount rate   3.5 % 4.6 %   For the quarter ended June 30, 2020, cash paid for leases included in our operating and financing cash flow activities were $ 7.0 million and $ 68.6 million, respectively. 15   amerco and consolidated subsidiaries notes to condensed consolidated financial statements - (continued) The components of lease costs were as follows:       Three Months Ended     June 30, 2020     (Unaudited)     (In thousands)       Operating lease costs $ 7,137       Finance lease cost:     Amortization of right-of-use assets $ 40,836 Interest on lease liabilities   6,282 Total finance lease cost $ 47,118   Maturities of lease liabilities were as follows:       Finance leases   Operating leases     (Unaudited) Year ending June 30,   (In thousands)           2021 $ 194,978 $ 24,802 2022   154,457   22,598 2023   122,986   21,780 2024   92,915   20,791 2025   65,825   6,213 Thereafter   35,155   65,758 Total lease payments   666,316   161,942 Less: imputed interest   -   (55,328) Present value of lease liabilities $ 666,316 $ 106,614   9. Contingencies COVID-19 In late 2019, COVID-19 was first detected in Wuhan, China. In March 2020, the World Health Organization declared COVID-19 a global pandemic, and governmental authorities around the world have implemented measures to reduce the spread of COVID-19. These measures along with the threat the virus poses have adversely affected workforces, customers, consumer sentiment, economies and financial markets. During the first quarter of fiscal 2021, the Company has been impacted by the spread of COVID-19. The extent to which COVID-19 impacts the Company's business, operations and financial results will continue to evolve in ways that the Company is not fully able to predict at this time.   We have experienced customer initiated changes in behavior, actions   by government entities, concerns from our workforce, and reactions from the capital markets.   Although the Company cannot estimate the length or gravity of the impact of COVID-19 at this time, if the pandemic continues, it may have a material adverse effect on the Company's results of future operations, financial position and liquidity in fiscal 2021. 16   amerco and consolidated subsidiaries notes to condensed consolidated financial statements - (continued) CARES Act The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax depreciation methods for qualified improvement property. We have availed ourselves of the provisions related to deferring certain payroll taxes, carrybacks of net operating losses, and will utilize the technical corrections to tax depreciation methods.   We estimate that the net operating loss carrybacks combined with the depreciation adjustments for our fiscal 2020 federal income tax return will result in a refund of approximately $ 381 million, which are reflected in Prepaid expense. As refunds are received, they will reduce this amount. We have estimated and recorded the overall effects of the CARES Act and do not anticipate a material change. It is possible future legislation could reduce or delay our ability to carryback these losses. Environmental Compliance with environmental requirements of federal, state and local governments may significantly affect Real Estate's business operations. Among other things, these requirements regulate the discharge of materials into the air, land and water and govern the use and disposal of hazardous substances. Real Estate is aware of issues regarding hazardous substances on some of its properties. Real Estate regularly makes capital and operating expenditures to stay in compliance with environmental laws and has put in place a remedial plan at each site where it believes such a plan is necessary. Since 1988, Real Estate has managed a testing and removal program for underground storage tanks. Based upon the information currently available to Real Estate, compliance with the environmental laws and its share of the costs of investigation and cleanup of known hazardous waste sites are not expected to result in a material adverse effect on AMERCO's financial position or results of operations. Other We are named as a defendant in various other litigation and claims arising out of the normal course of business. In management's opinion, none of these other matters will have a material effect on our financial position and results of operations. 10. Related Party Transactions As set forth in the Company's Audit Committee Charter and consistent with NASDAQ Listing Rules, our Audit Committee (the “Audit Committee”) reviews and maintains oversight over related party transactions, which are required to be disclosed under the Securities and Exchange Commission (“SEC”) rules and regulations and in accordance with generally accepted accounting principles (“GAAP”). Accordingly, all such related party transactions are submitted to the Audit Committee for ongoing review and oversight. Our internal processes are designed to ensure that our legal and finance departments identify and monitor potential related party transactions that may require disclosure and Audit Committee oversight. AMERCO has engaged in related party transactions and has continuing related party interests with certain major stockholders, directors and officers of the consolidated group as disclosed below. SAC Holding Corporation and SAC Holding II Corporation (collectively “SAC Holdings”) were established in order to acquire and develop self-storage properties. These properties are being managed by us pursuant to management agreements. In the past, we sold real estate and various self-storage properties to SAC Holdings, and such sales provided significant cash flows to us. SAC Holdings, Four SAC Self-Storage Corporation, Five SAC Self-Storage Corporation, Galaxy Investments, L.P. and 2015 SAC self-storage are substantially controlled by Blackwater Investments, Inc. (“Blackwater”). Blackwater is wholly owned by Willow Grove Holdings LP (“WGHLP”), which is owned by Mark V. Shoen (a significant stockholder), and various trusts associated with Edward J. Shoen (our Chairman of the Board, President and a significant stockholder) and Mark V. Shoen 17   amerco and consolidated subsidiaries notes to condensed consolidated financial statements - (continued) Related Party Revenue     Quarter Ended June 30,     2020   2019     (Unaudited)     (In thousands) U-Haul management fee revenue from Blackwater $ 6,148 $ 6,249 U-Haul management fee revenue from Mercury   1,199   907   $ 7,347 $ 7,156 We currently manage the self-storage properties owned or leased by Blackwater and Mercury Partners, L.P. (“Mercury”), pursuant to a standard form of management agreement, under which we receive a management fee of between 4 % and 10 % of the gross receipts plus reimbursement for certain expenses. We received management fees, exclusive of reimbursed expenses, of $ 10.1 million and $ 9.2 million from the above-mentioned entities during the first quarter of fiscal 2021 and 2020, respectively. This management fee is consistent with the fee received for other properties we previously managed for third parties. Mark V. Shoen controls the general partner of Mercury. The limited partner interests of Mercury are owned indirectly by James P. Shoen and various trusts benefitting Edward J. Shoen and James P. Shoen or their descendants.   Mercury holds the option to purchase a portfolio of properties currently leased by Mercury and a U-Haul subsidiary, which option is exercisable in 2024. Related Party Costs and Expenses     Quarter Ended June 30,     2020   2019     (Unaudited)     (In thousands) U-Haul lease expenses to Blackwater $ 657 $ 658 U-Haul commission expenses to Blackwater   15,332   17,202   $ 15,989 $ 17,860 We lease space for marketing company offices, vehicle repair shops and hitch installation centers from subsidiaries of Blackwater. The terms of the leases are similar to the terms of leases for other properties owned by unrelated parties that are leased to us. As of June 30, 2020, subsidiaries of Blackwater acted as independent dealers. The financial and other terms of the dealership contracts are substantially identical to the terms of those with our other independent dealers whereby commissions are paid by us based upon equipment rental revenues. These agreements with subsidiaries of Blackwater, excluding Dealer Agreements, provided revenues of $ 6.1 million, expenses of $ 0.7 million and cash flows of $ 5.2 million during the first quarter of fiscal 2021. Revenues and commission expenses related to the Dealer Agreements were $ 63.0 million and $ 15.3 million, respectively, during the first quarter of fiscal 2021. In June 2020, we purchased an airplane from SAC Holdings for $0.4 million. 18   amerco and consolidated subsidiaries notes to condensed consolidated financial statements - (continued) Management determined that we do not have a variable interest pursuant to the variable interest entity (“VIE”) model under Accounting Standards Codification (“ASC”) 810 - Consolidation (“ASC 810”) in the holding entities of Blackwater based upon management agreements which are with the individual operating entities; therefore, we are precluded from consolidating these entities. Related Party Assets       June 30,   March 31,     2020   2020     (Unaudited)         (In thousands) U-Haul receivable from Blackwater $ 22,897 $ 25,293 U-Haul receivable from Mercury   5,555   9,893 Other (a)   (19,046)   (402)   $ 9,406 $ 34,784 (a)       Timing differences for intercompany balances with insurance subsidiaries resulting from the three-month difference in reporting periods. Our credit balance as of June 30, 2020, was due to a timing difference for a dividend paid by Oxford to AMERCO of $ 18.6 million.   19   amerco and consolidated subsidiaries notes to condensed consolidated financial statements - (continued) 11. Consolidating Financial Information by Industry Segment   AMERCO's three reportable segments are:   Moving and Storage, comprised of AMERCO, U-Haul, and Real Estate and the subsidiaries of UHaul and Real Estate,   Property and Casualty Insurance, comprised of Repwest and its subsidiaries and ARCOA, and   Life Insurance, comprised of Oxford and its subsidiaries.   Management tracks revenues separately, but does not report any separate measure of the profitability for rental vehicles, rentals of self-storage spaces and sales of products that are required to be classified as a separate operating segment and accordingly does not present these as separate reportable segments. Deferred income taxes are shown as liabilities on the condensed consolidating statements. The information includes elimination entries necessary to consolidate AMERCO, the parent, with its subsidiaries. Investments in subsidiaries are accounted for by the parent using the equity method of accounting.                           20       amerco and consolidated subsidiaries notes to condensed consolidated financial statements - (continued)   11. Financial Information by Consolidating Industry Segment: Consolidating balance sheets by industry segment as of June 30, 2020 are as follows:       Moving & Storage Consolidated   Property & Casualty Insurance (a)   Life Insurance (a)   Eliminations     AMERCO Consolidated     (Unaudited)     (In thousands) Assets:   Cash and cash equivalents $ 770,941 $ 4,119 $ 50,014 $ -   $ 825,074 Reinsurance recoverables and trade receivables, net   83,795   87,403   37,173   -     208,371 Inventories and parts, net   100,835   -   -   -     100,835 Prepaid expenses   585,879   -   -   -     585,879 Investments, fixed maturities and marketable equities   -   270,083   2,123,439   -     2,393,522 Investments, other   20,988   96,738   277,397   -     395,123 Deferred policy acquisition costs, net   -   -   117,123   -     117,123 Other assets   67,047   1,094   2,274   -     70,415 Right of use assets - financing, net   1,026,928   -   -   -     1,026,928 Right of use assets - operating   106,202   262   218   -     106,682 Related party assets   34,035   7,024   13,474   (45,127) (c)   9,406     2,796,650   466,723   2,621,112   (45,127)     5,839,358                         Investment in subsidiaries   599,538   -   -   (599,538) (b)   -                         Property, plant and equipment, at cost:                       Land   1,043,952   -   -   -     1,043,952 Buildings and improvements   4,752,816   -   -   -     4,752,816 Furniture and equipment   754,641   -   -   -     754,641 Rental trailers and other rental equipment   513,623   -   -   -     513,623 Rental trucks   3,619,718   -   -   -     3,619,718     10,684,750   -   -   -     10,684,750 Less:   Accumulated depreciation   (2,811,749)   -   -   -     (2,811,749) Total property, plant and equipment, net   7,873,001   -   -   -     7,873,001 Total assets $ 11,269,189 $ 466,723 $ 2,621,112 $ (644,665)   $ 13,712,359                         (a) Balances as of March 31, 2020                       (b) Eliminate investment in subsidiaries                       (c) Eliminate intercompany receivables and payables                       21   amerco and consolidated subsidiaries notes to condensed consolidated financial statements - (continued) Consolidating balance sheets by industry segment as of June 30, 2020, continued     Moving & Storage Consolidated   Property & Casualty Insurance (a)   Life Insurance (a)   Eliminations     AMERCO Consolidated     (Unaudited)     (In thousands) Liabilities:                       Accounts payable and accrued expenses $ 571,473 $ 5,281 $ 5,602 $ -   $ 582,356 Notes, loans and finance/capital leases payable, net   4,766,564   -   11,399   -     4,777,963 Operating lease liability   106,114   271   229   -     106,614 Policy benefits and losses, claims and loss expenses payable   410,989   207,571   380,202   -     998,762 Liabilities from investment contracts   -   -   1,833,617   -     1,833,617 Other policyholders' funds and liabilities   -   1,662   5,102   -     6,764 Deferred income   42,789   -   -   -     42,789 Deferred income taxes, net   1,092,631   6,715   6,966   -     1,106,312 Related party liabilities   26,143   3,694   1,387   (31,224) (c)   - Total liabilities   7,016,703   225,194   2,244,504   (31,224)     9,455,177                         Stockholders' equity:                       Series preferred stock:                       Series A preferred stock   -   -   -   -     - Series B preferred stock   -   -   -   -     - Series A common stock   -   -   -   -     - Common stock   10,497   3,301   2,500   (5,801) (b)   10,497 Additional paid-in capital   454,029   91,120   26,271   (117,601) (b)   453,819 Accumulated other comprehensive income (loss)   (18,428)   3,937   36,550   (35,791) (b)   (13,732) Retained earnings   4,484,038   143,171   311,287   (454,248) (b)   4,484,248 Cost of common stock in treasury, net   (525,653)   -   -   -     (525,653) Cost of preferred stock in treasury, net   (151,997)   -   -   -     (151,997) Unearned employee stock ownership plan stock   -   -   -   -     - Total stockholders' equity   4,252,486   241,529   376,608   (613,441)     4,257,182 Total liabilities and stockholders' equity $ 11,269,189 $ 466,723 $ 2,621,112 $ (644,665)   $ 13,712,359                         (a) Balances as of March 31, 2020                       (b) Eliminate investment in subsidiaries                       (c) Eliminate intercompany receivables and payables                         22   amerco and consolidated subsidiaries notes to condensed consolidated financial statements - (continued) Consolidating balance sheets by industry segment as of March 31, 2020 are as follows:     Moving & Storage Consolidated   Property & Casualty Insurance (a)   Life Insurance (a)   Eliminations     AMERCO Consolidated       Assets:   (In thousands) Cash and cash equivalents $ 459,078 $ 4,794 $ 30,480 $ -   $ 494,352 Reinsurance recoverables and trade receivables, net   60,073   93,995   32,604   -     186,672 Inventories and parts, net   101,083   -   -   -     101,083 Prepaid expenses   562,904   -   -   -     562,904 Investments, fixed maturities and marketable equities   -   288,998   2,203,740   -     2,492,738 Investments, other   20,988   90,145   249,240   -     360,373 Deferred policy acquisition costs, net   -   -   103,118   -     103,118 Other assets   69,128   680   2,148   -     71,956 Right of use assets - financing, net   1,080,353   -   -   -     1,080,353 Right of use assets - operating   106,631   -   -   -     106,631 Related party assets   41,027   7,137   18,629   (32,009) (c)   34,784     2,501,265   485,749   2,639,959   (32,009)     5,594,964                         Investment in subsidiaries   668,498   -   -   (668,498) (b)   -                         Property, plant and equipment, at cost:                       Land   1,032,945   -   -   -     1,032,945 Buildings and improvements   4,663,461   -   -   -     4,663,461 Furniture and equipment   752,363   -   -   -     752,363 Rental trailers and other rental equipment   511,520   -   -   -     511,520 Rental trucks   3,595,933   -   -   -     3,595,933     10,556,222   -   -   -     10,556,222 Less:   Accumulated depreciation   (2,713,162)   -   -   -     (2,713,162) Total property, plant and equipment, net   7,843,060   -   -   -     7,843,060 Total assets $ 11,012,823 $ 485,749 $ 2,639,959 $ (700,507)   $ 13,438,024                         (a) Balances as of December 31, 2019                       (b) Eliminate investment in subsidiaries                       (c) Eliminate intercompany receivables and payables                       23   amerco and consolidated subsidiaries notes to condensed consolidated financial statements - (continued) Consolidating balance sheets by industry segment as of March 31, 2020, continued     Moving & Storage Consolidated   Property & Casualty Insurance (a)   Life Insurance (a)   Eliminations     AMERCO Consolidated                             (In thousands) Liabilities:                       Accounts payable and accrued expenses $ 545,685 $ 5,530 $ 3,138 $ -   $ 554,353 Notes, loans and finance/capital leases payable, net   4,609,844   -   11,447   -     4,621,291 Operating lease liability   106,443   -   -   -     106,443 Policy benefits and losses, claims and loss expenses payable   410,107   210,341   377,199   -     997,647 Liabilities from investment contracts   -   -   1,802,217   -     1,802,217 Other policyholders' funds and liabilities   -   5,751   4,439   -     10,190 Deferred income   31,620   -   -   -     31,620 Deferred income taxes, net   1,063,681   8,447   21,415   -     1,093,543 Related party liabilities   24,275   4,616   2,670   (31,561) (c)   - Total liabilities   6,791,655   234,685   2,222,525   (31,561)     9,217,304                         Stockholders' equity:                       Series preferred stock:                       Series A preferred stock   -   -   -   -     - Series B preferred stock   -   -   -   -     - Series A common stock   -   -   -   -     - Common stock   10,497   3,301   2,500   (5,801) (b)   10,497 Additional paid-in capital   454,029   91,120   26,271   (117,601) (b)   453,819 Accumulated other comprehensive income (loss)   35,100   12,581   78,550   (91,579) (b)   34,652 Retained earnings   4,399,192   144,062   310,113   (453,965) (b)   4,399,402 Cost of common stock in treasury, net   (525,653)   -   -   -     (525,653) Cost of preferred stock in treasury, net   (151,997)   -   -   -     (151,997) Unearned employee stock ownership plan stock   -   -   -   -     - Total stockholders' equity   4,221,168   251,064   417,434   (668,946)     4,220,720 Total liabilities and stockholders' equity $ 11,012,823 $ 485,749 $ 2,639,959 $ (700,507)   $ 13,438,024                         (a) Balances as of December 31, 2019                       (b) Eliminate investment in subsidiaries                       (c) Eliminate intercompany receivables and payables                         24   amerco and consolidated subsidiaries notes to condensed consolidated financial statements - (continued) Consolidating statement of operations by industry segment for the quarter ended June 30, 2020 are as follows:     Moving & Storage Consolidated   Property & Casualty Insurance (a)   Life Insurance (a)   Eliminations     AMERCO Consolidated     (Unaudited)     (In thousands) Revenues:                       Self-moving equipment rentals $ 654,913 $ - $ - $ (628) (c) $ 654,285 Self-storage revenues   108,955   -   -   -     108,955 Self-moving and self-storage products and service sales   91,350   -   -   -     91,350 Property management fees   7,347   -   -   -     7,347 Life insurance premiums   -   -   30,908   -     30,908 Property and casualty insurance premiums   -   14,507   -   (773) (c)   13,734 Net investment and interest income   662   (873)   18,006   (813) (b)   16,982 Other revenue   63,073   -   739   (136) (b)   63,676 Total revenues   926,300   13,634   49,653   (2,350)     987,237                         Costs and expenses:                       Operating expenses   480,081   8,825   5,288   (1,532) (b,c)   492,662 Commission expenses   69,175   -   -   -     69,175 Cost of sales   52,831   -   -   -     52,831 Benefits and losses   -   4,030   35,547   -     39,577 Amortization of deferred policy acquisition costs   -   -   6,888   -     6,888 Lease expense   7,137   1   10   (545) (b)   6,603 Depreciation, net of gains on disposals   165,671   -   -   -     165,671 Net gains on disposal of real estate   (256)   -   -   -     (256) Total costs and expenses   774,639   12,856   47,733   (2,077)     833,151                         Earnings from operations before equity in earnings of subsidiaries   151,661   778