AMERCO /NV/, 10-Q filed on 04 Aug 21
v3.21.2
Document and Entity Information
3 Months Ended
Jun. 30, 2021
shares
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 2022
Trading Symbol UHAL
Document Type 10-Q
Document Fiscal Period Focus Q1
Document Period End Date Jun. 30, 2021
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 , $0.25 par value
Security Exchange Name NASDAQ
Document Quarterly Report true
Document Transition Report false
v3.21.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2021
Mar. 31, 2021
ASSETS:    
Cash and cash equivalents $ 1,519,981 $ 1,194,012
Reinsurance recoverables and trade receivables, net 233,056 224,426
Inventories, net 117,978 105,577
Prepaid expenses 306,565 469,144
Investments, fixed maturities and marketable equities 2,755,133 2,695,656
Investments, other 525,893 489,759
Deferred policy acquisition costs, net 101,169 89,749
Other assets 46,910 47,730
Right of use Assets - Financing 814,875 877,038
Right of use Assets - Operating 89,369 92,505
Related party assets 34,481 35,395
Subtotal assets 6,545,410 6,320,991
Property, plant and equipment, at cost:    
Land 1,110,300 1,075,813
Buildings and improvements 5,284,224 5,163,705
Furniture and equipment 796,077 786,505
Property, plant and equipment (gross) 11,805,268 11,413,668
Less: Accumulated depreciation (3,235,796) (3,083,053)
Total property, plant and equipment 8,569,472 8,330,615
Total assets 15,114,882 14,651,606
Liabilities:    
Accounts payable and accrued expenses 696,797 645,575
Notes, loans and leases payable 4,673,383 4,668,907
Financing lease liability 468,484  
Operating lease liability 89,390 92,510
Policy benefits and losses, claims and loss expenses payable 1,007,144 997,701
Liabilities from investment contracts 2,226,560 2,161,530
Other policyholders' funds and liabilities 10,989 12,420
Deferred income 54,738 42,592
Deferred income taxes, net 1,244,353 1,178,489
Total liabilities 10,003,354 9,799,724
Commitments and contingencies (notes 4, 8 and 9)
Stockholders' equity:    
Additional paid-in capital 453,819 453,819
Accumulated other comprehensive loss 31,132 106,857
Retained earnings 5,293,730 4,958,359
Total stockholders' equity 5,111,528 4,851,882
Total liabilities and stockholders' equity 15,114,882 14,651,606
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 495,012 477,921
Rental Trucks [Member]    
Property, plant and equipment, at cost:    
Property subject to or available for operating lease, gross $ 4,119,655 $ 3,909,724
v3.21.2
Condensed Consolidated Balance Sheets Parenthetical
Jun. 30, 2021
$ / 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
v3.21.2
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Revenues:    
Self-moving equipment rentals $ 1,035,377 $ 654,285
Self-storage revenues 137,393 108,955
Self moving and self-storage products and service sales 104,885 91,350
Property management fees 8,449 7,347
Life insurance premiums 28,705 30,908
Property and casualty insurance premiums 16,869 13,734
Investment income interest and dividend 34,999 16,982
Other revenue 106,179 63,676
Total revenues 1,472,856 987,237
Costs and expenses:    
Operating expenses 614,529 492,662
Commission expenses 113,149 69,175
Cost of sales 69,915 52,831
Benefits and losses 47,298 39,577
Amortization of deferred policy acquisition costs 8,823 6,888
Lease expense 7,647 6,603
Depreciation, net of (gains) losses on disposals 121,717 165,671
Net (gains) losses on disposal of real estate (4,430) (256)
Total costs and expenses 978,648 833,151
Earnings from operations 494,208 154,086
Other components of net periodic benefit costs (280) (247)
Interest expense (39,178) (39,521)
Pretax earnings 454,750 114,318
Income tax expense (109,575) (26,592)
Earnings available to common stockholders $ 345,175 $ 87,726
Basic and diluted earnings per common share   $ 4.47
Weighted average common shares outstanding: basic and diluted 19,607,788 19,607,788
v3.21.2
Condensed Consolidated Statements of Operations Parenthetical - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Depreciation:    
Net gain on sale of real and personal property $ (50,323) $ (1,069)
Related party:    
Related party revenues, net of eliminations 8,449 7,347
Related party, costs and expenses, net of eliminations $ 23,506 $ 15,989
v3.21.2
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Comprehensive income (loss) (pretax):    
Pretax earnings (loss) $ 454,750 $ 114,318
Comprehensive income (loss) (tax effect):    
Income tax expense (109,575) (26,592)
Comprehensive income (loss) (net of tax):    
Net earnings 345,175 87,726
Other comprehensive income (loss):    
Foreign currency translation (pretax) (3,392) (2,917)
Foreign currency translation (tax effect) 0 0
Foreign currency translation (net of tax) (3,392) (2,917)
Unrealized gain (loss) on investments (pretax) (92,451) (58,962)
Unrealized gain (loss) on investments (tax effect) 19,424 13,463
Unrealized gain (loss) on investments (net of tax) (73,027) (45,499)
Change in fair value of cash flow hedges (pretax) (68) (705)
Change in fair value of cash flow hedges (tax effect) 17 173
Change in fair value of cash flow hedges (net of tax) (51) (532)
Amounts reclassifed into earnings on hedging activities (pretax) 987 747
Amounts reclassified into earnings on hedging activities (tax effect) (242) (183)
Amounts reclassified into earnings on hedging activities (net of tax) 745 564
Total other comprehensive income (loss) (pretax) (94,924) (61,837)
Total other comprehensive income (loss) (tax effect) 19,199 13,453
Total other comprehensive income (loss) (net of tax) (75,725) (48,384)
Total comprehensive income (pretax) 359,826 52,481
Total comprehensive income (tax effect) (90,376) (13,139)
Total comprehensive income (net of tax) $ 269,450 $ 39,342
v3.21.2
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]
Balance, beginning of period at Mar. 31, 2020 $ 4,220,720 $ 10,497 $ 453,819 $ 34,652 $ 4,399,402 $ (525,653) $ (151,997)
Cosolidated statement of change in equity              
Adjustment for adoption of ASU 2016-13 (2,880) 0 0 0 (2,880) 0 0
Foreign currency translation (2,917) 0 0 (2,917) 0 0 0
Unrealized net gain (loss) on investments, net of tax (45,499) 0 0 (45,499) 0 0 0
Change in fair value of cash flow hedges, net of tax (532) 0 0 (532) 0 0 0
Amounts reclassified into earnings on hedging activities 564 0 0 564 0 0 0
Net earnings 87,726 0 0 0 87,726 0 0
Net activity 36,462 0 0 (48,384) 84,846 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)
Balance, beginning of period at Mar. 31, 2021 4,851,882 10,497 453,819 106,857 4,958,359 (525,653) (151,997)
Cosolidated statement of change in equity              
Foreign currency translation (3,392) 0 0 (3,392) 0 0 0
Unrealized net gain (loss) on investments, net of tax (73,027) 0 0 (73,027) 0 0 0
Change in fair value of cash flow hedges, net of tax (51) 0 0 (51) 0 0 0
Amounts reclassified into earnings on hedging activities 745 0 0 745 0 0 0
Net earnings 345,175 0 0 0 345,175 0 0
Common stock dividends (9,804) 0 0 0 (9,804) 0 0
Net activity 259,646 0 0 (75,725) 335,371 0 0
Balance, end of period at Jun. 30, 2021 $ 5,111,528 $ 10,497 $ 453,819 $ 31,132 $ 5,293,730 $ (525,653) $ (151,997)
v3.21.2
Condensed Consolidated Statements of Changes in Stockholders' Equity Parenthetical
3 Months Ended
Jun. 30, 2021
$ / shares
Common Stock, Dividends, Per Share, Declared $ 0.50
v3.21.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Cash flow from operating activities:    
Net earnings $ 345,175 $ 87,726
Adjustments to reconcile net earnings to cash provided by operations:    
Depreciation 172,040 166,740
Amortization of deferred policy acquisition costs 8,823 6,888
Amortization of premiums and accretion of discounts related to investments, net 4,361 3,550
Amortization of debt issuance costs 1,332 1,297
Interest credited to policyholders 15,583 7,667
Change in allowance for losses on trade receivables (484) 60
Change in allowance for inventory reserves 3,403 (99)
Net gain on sale of real and personal property (50,323) (1,069)
Net losses on disposal of real estate (4,430) (256)
Net (gain) loss on sale of investments (2,469) 2,014
Net losses on equity investments (2,231) 3,989
Deferred income tax 82,374 27,534
Net change in other operating assets and liabilities:    
Reinsurance recoverables and trade receivables (8,082) (23,594)
Inventories (15,765) 350
Prepaid expenses 162,706 (22,831)
Capitalization of deferred policy acquisition costs (8,990) (7,308)
Other assets (853) 74
Related party assets 562 7,329
Accounts payable and accrued expenses 71,599 58,273
Policy benefits and losses, claims and loss expenses payable 9,064 528
Other policyholders' funds and liabilities (1,430) (3,426)
Deferred income 11,863 14,898
Related party liabilities 385 (249)
Net cash provided by operating activities 794,213 330,085
Cash flow from investing activities:    
Escrow deposits 1,887 1,401
Purchase of:    
Property, plant and equipment (508,411) (249,740)
Short term investments (11,810) (9,625)
Fixed maturity investments (281,507) (94,193)
Preferred stock (8,000) 0
Real estate (67) (192)
Mortgage loans (42,538) (33,300)
Proceeds from sale of:    
Property, plant and equipment 182,146 76,412
Short term investments 12,558 2,448
Fixed maturity investments 126,956 110,165
Mortgage loans 5,628 1,432
Net cash used by investing activities (523,158) (195,192)
Cash flow from financing activities:    
Borrowings from credit facilities 161,854 377,051
Principal repayments on credit facilities (109,334) (154,089)
Payment of debt issuance costs (352) (1,677)
Capital lease payments (45,170) (68,554)
Net contribution from (to) related party 0 18,599
Investment contract deposits 113,779 75,366
Investment contract withdrawals (64,332) (51,633)
Net cash provided by (used in) financing activities 56,445 195,063
Effects of exchange rate on cash (1,531) 766
Increase (decrease) in cash and cash equivalents 325,969 330,722
Cash and cash equivalents at the beginning of period 1,194,012 494,352
Cash and cash equivalents at the end of the period $ 1,519,981 $ 825,074
v3.21.2
Basis of Presentation
3 Months Ended
Jun. 30, 2021
Disclosure Text Block [Abstract]  
1. Basis of Presentation 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 2021 and 2020 correspond to fiscal 2022 and 2021 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, 2021 and the related condensed consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for the first quarter of fiscal 2022 and 2021 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, 2021. 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. 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.
v3.21.2
Earnings Per Share
3 Months Ended
Jun. 30, 2021
Earnings Per Share [Abstract]  
2. Earnings Per Share 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.
v3.21.2
Investments
3 Months Ended
Jun. 30, 2021
Investments Debt Equity Securities [Abstract]  
3. Investments 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 $ 26.8 million and $ 27.7 million as of June 30, 2021 and March 31, 2021, respectively. Available-for-Sale Investments Available-for-sale investments as of June 30, 2021 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 $ 104,016 $   9,087 $   – $   (818) $   – $   112,285 U.S. government agency mortgage-backed securities   70,219   782   (7)   (762)   –   70,232 Obligations of states and political subdivisions   215,298   18,323   (106)   (969)   –   232,546 Corporate securities   1,998,177   129,442   (1,079)   (18,456)   (1,041)   2,107,043 Mortgage-backed securities   170,569   10,380   (1)   (2)   –   180,946   $ 2,558,279 $   168,014 $   (1,193) $   (21,007) $   (1,041) $   2,703,052   Available-for-sale investments as of March 31, 2021 were as follows:       Cost Amortized   Unrealized Gains Gross   Unrealized Losses More than 12 Months Gross   Unrealized Losses Less than 12 Months Gross   Allowance for Expected Credit Losses   Market Value Estimated           (In thousands) U.S. treasury securities and government obligations $ 92,429 $   12,941 $   – $   – $   – $   105,370 U.S. government agency mortgage-backed securities   61,427   911   (1)   (132)   –   62,205 Obligations of states and political subdivisions   230,521   25,249   (59)   (3)   –   255,708 Corporate securities   1,846,507   199,447   (163)   (641)   (1,319)   2,043,831 Mortgage-backed securities   174,728   11,706   (1)   (8)   –   186,425   $ 2,405,612 $   250,254 $   ( 224 ) $   ( 784 ) $   ( 1,319 ) $   2,653,539   We sold available-for-sale securities with a fair value of $ 124.7 million during the first quarter of fiscal 2022. The gross realized gains on these sales totaled $ 2.1 million.   The gross realized losses on these sales totaled $ 0.6 million. 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.   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, 2021. The adjusted cost and estimated market value of available-for-sale investments by contractual maturity were as follows:       June 30, 2021   March 31, 2021     Cost Amortized   Market Value Estimated   Cost Amortized   Market Value Estimated     (Unaudited)         (In thousands) Due in one year or less $ 57,753 $ 58,374 $ 90,142 $ 91,190 Due after one year through five years   590,448   627,370   562,442   601,818 Due after five years through ten years   641,992   694,439   672,733   754,536 Due after ten years   1,097,517   1,141,923   905,567   1,019,570     2,387,710   2,522,106   2,230,884   2,467,114                   Mortgage-backed securities   170,569   180,946   174,728   186,425 Redeemable preferred stocks   –   –   –   –   $ 2,558,279 $ 2,703,052 $ 2,405,612 $ 2,653,539   As of June 30, 2021 and March 31, 2021, 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, 2021   March 31, 2021     Amortized   Estimated   Amortized   Estimated     (Unaudited)             (In thousands)                   Common stocks $ 9,775 $ 22,673 $ 9,775 $ 20,440 Non-redeemable preferred stocks   28,034   29,408   20,034   21,677   $ 37,809 $ 52,081 $ 29,809 $ 42,117
v3.21.2
Borrowings
3 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]  
4. Borrowings   4. Borrowings Long Term Debt Long term debt was as follows:                       June 30,   March 31,   2022 Rates (a)     Maturities   2021   2021                 (Unaudited)                     (In thousands) Real estate loan (amortizing term)       1.60 %       2023 $ 55,257 $   82,913 Senior mortgages 2.80 % - 6.62 %   2021 - 2038   2,122,167   2,125,324 Real estate loans (revolving credit) (a) 1.47 % - 3.14 %   2023 - 2025   535,000   535,000 Fleet loans (amortizing term) 1.61 % - 4.66 %   2022 - 2028   162,528   176,295 Fleet loans (revolving credit) 1.24 %   1.34 %   2023 - 2025   553,000   535,000 Finance leases (rental equipment) 1.92 % - 5.04 %   2021 - 2026   468,484   513,623 Finance liability (rental equipment) 1.60 % - 4.22 %   2024   2029   718,585   644,375 Other obligations 1.75 % - 8.00 %   2021 - 2049   87,106   86,085 Notes, loans and finance leases payable                   4,702,127   4,698,615 Less: Debt issuance costs                     (28,744)   (29,708) Total notes, loans and finance leases payable, net         $ 4,673,383 $   4,668,907                             (a) Certain loans have interest rate swaps fixing the rate between 3.03% and 3.14% based on current margins.     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, 2021, the applicable LIBOR was 0.10 % and the applicable margin was 1.50 %, the sum of which was 1.60 %. 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 2.80 % and 6.62 %. The weighted average interest rate of these loans as of June 30, 2021 was 4.27 %.   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. 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, 2021, 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 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, 2021, the applicable LIBOR was between 0.08% and 0.09% and the margin was between 1.25% and 1.50%, the sum of which was between 1.34% and 1.59%. 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, 2021, 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 June 30, 2021, the applicable LIBOR was 0.09 % and the margin was 1.38 %, the sum of which was 1.47 %. 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 1.61 % and 4.66 %. All of our rental truck amortizing loans are collateralized by the rental equipment purchased. The majority of these loans are funded at 70%, but some may be funded at 100%. 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, 2021, the applicable LIBOR was 0.09 % and the margin was between 1.15 % and 1.25 %, the sum of which was between 1.24 % and 1.34 %. Of the $ 535.0 million outstanding, $ 100.0 million is fixed with an interest rate of 2.36 %. Only interest is paid on the loans until the last nine months of the respective loan terms when principal becomes due monthly. Finance Leases The Finance Lease balance represents our sale-leaseback transactions of rental equipment that were entered into and classified as capital leases prior to the adoption of Topic 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 are collateralized by our rental fleet. The net book value of the corresponding rental equipment was $ 804.1 million and $ 865.6 million as of June 30, 2021 and March 31, 2021, respectively. There were no new financing leases, as assessed under the new leasing guidance, entered into during the first quarter of fiscal 2022. 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 1.60 % 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 June 30, 2021, the aggregate outstanding principal balance of the U-Notes® issued was $89.5 million, of which $2.4 million is held by our insurance subsidiaries and eliminated in consolidation. Interest rates range between 1.75% and 8.00% and maturity dates range between 2021 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 March 31, 2021, the advances had an aggregate balance of $ 70.5 million, for which Oxford pays fixed interest rates between 0.00 % and 1.72 % with maturities between June 8, 2021 and September 29, 2025. As of March 31, 2021, available-for-sale investments held with the FHLB totaled $ 134.3 million, of which $ 79.3 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 Leases Payable The annual maturities of our notes, loans and finance leases payable, as of June 30, 2021 for the next five years and thereafter are as follows:     Years Ending June 30,     2022   2023   2024   2025   2026   Thereafter     (Unaudited)     (In thousands) Notes, loans and finance leases payable, secured $ 510,380 $ 673,861 $ 1,152,549 $ 561,740 $ 410,089 $ 1,393,508 Interest on Borrowings Interest Expense Components of interest expense include the following:     Quarter Ended June 30,     2021   2020     (Unaudited)     (In thousands) Interest expense $ 38,935 $ 41,911 Capitalized interest   (2,030)   (4,434) Amortization of transaction costs   1,286   1,297 Interest expense resulting from cash flow hedges   987   747 Total interest expense $ 39,178 $ 39,521   Interest paid in cash, including payments related to derivative contracts, amounted to $ 36.1 million and $ 39.4 million for the first quarter of fiscal 2022 and 2021, respectively. Interest Rates Interest rates and Company borrowings were as follows:     Revolving Credit Activity       Quarter Ended June 30,       2021   2020       (Unaudited)       (In thousands, except interest rates)   Weighted average interest rate during the quarter   1.39 % 2.02 % Interest rate at the end of the quarter   1.38 % 1.67 % Maximum amount outstanding during the quarter $ 1,088,000 $ 1,175,000   Average amount outstanding during the quarter $ 1,073,055 $ 1,161,385   Facility fees $ 71 $ 4  
v3.21.2
Derivatives
3 Months Ended
Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
5. Derivatives   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. 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 condensed consolidated balance sheet were as follows:       June 30, 2021   March 31, 2021     (Unaudited)         (In thousands) Interest rate contracts designated as hedging instruments:         Assets $ – $ – Liabilities   4,222   5,141 Notional amount   235,000   235,000         The Effect of Interest Rate Contracts on the Statements of Operations for the Quarters Ended         June 30, 2021   June 30, 2020     (Unaudited)     (In thousands) (Gain) loss recognized in AOCI on interest rate contracts $ (919) $ (42) (Gain) loss reclassified from AOCI into income $ 987 $ 747   Gains or losses recognized in income on interest rate derivatives are recorded as interest expense in the condensed consolidated statements of operations. During the first quarter of fiscal 2022, we recognized an increase in the fair value of our cash flow hedges of $0.1 million, net of taxes. During the first quarter of fiscal 2022, we reclassified $0.7 million from accumulated other comprehensive income (loss) (“AOCI”) to interest expense. As of June 30, 2021, we expect to reclassify $ 3.9 million of net losses on interest rate contracts from AOCI to earnings as interest expense over the next twelve months.
v3.21.2
Accumulated Other Comprehensive Income (Loss)
3 Months Ended
Jun. 30, 2021
Disclosure Text Block [Abstract]  
6. Comprehensive Income (Loss)   6. Accumulated Other Comprehensive Income (Loss) A summary of 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)     (Unaudited)     (In thousands) Balance at March 31, 2021 $ (52,929) $   167,653 $   (3,879) $   (3,988) $   106,857 Foreign currency translation   (3,392)   –   –   –   (3,392) Unrealized net losses on investments   –   (73,027)   –   –   (73,027) Change in fair value of cash flow hedges   –   –   (51)   –   (51) Amounts reclassified into earnings on hedging activities   –   –   745   –   745 Other comprehensive income (loss)   (3,392)   (73,027)   694   –   (75,725) Balance at June 30, 2021 $ ( 56,321 ) $   94,626 $   ( 3,185 ) $   ( 3,988 ) $   31,132
v3.21.2
Stockholders' Equity
3 Months Ended
Jun. 30, 2021
Stockholders' Equity [Abstract]  
7. Stockholders' Equity 7. Stockholders’ Equity The following table lists the dividends that have been declared and issued for fiscal year 2022. Common Stock Dividends Declared Date   Per Share Amount   Record Date   Dividend Date               June 9, 2021 $ 0.50   June 24, 2021   July 8, 2021   As of June 30, 2021, no awards had been issued under the 2016 AMERCO Stock Option Plan.
v3.21.2
Leases
3 Months Ended
Jun. 30, 2021
Leases [Abstract]  
8. Leases 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. 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. 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 sheets. Finance leases, which are comprised primarily of rental equipment leases, are included in ROU assets - financing, net, and notes, loans and finance leases payable, net in our balance sheets. 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 Financial Statements for additional information. The following tables show the components of our ROU assets, net:     As of June 30, 2021     Finance   Operating   Total     (Unaudited)     (In thousands) Buildings and improvements $ – $ 135,174 $ 135,174 Furniture and equipment   22,176   –   22,176 Rental trailers and other rental equipment   197,981   –   197,981 Rental trucks   1,395,144   –   1,395,144 Right-of-use assets, gross   1,615,301   135,174   1,750,475 Less: Accumulated depreciation   (800,426)   (45,805)   (846,231) Right-of-use assets, net $ 814,875 $ 89,369 $ 904,244       As of March 31, 2021     Finance   Operating   Total     (In thousands) Buildings and improvements $ – $ 132,901 $ 132,901 Furniture and equipment   22,316   –   22,316 Rental trailers and other rental equipment   203,594   –   203,594 Rental trucks   1,494,098   –   1,494,098 Right-of-use assets, gross   1,720,008   132,901   1,852,909 Less: Accumulated depreciation   (842,970)   (40,396)   (883,366) Right-of-use assets, net $ 877,038 $ 92,505 $ 969,543   As of June 30, 2021 and March 31, 2021, we had finance leases for the ROU assets, net of $ 468.5 million and $ 513.6 million, respectively and operating leases of $ 89.4 million and $ 92.5 million, respectively.       Finance leases       June 30,   March 31,       2021   2021               Weighted average remaining lease term (years)   3   3   Weighted average discount rate   3.6 % 3.6 %       Operating leases       June 30,   March 31,       2021   2021               Weighted average remaining lease term (years)   14.8   14.7   Weighted average discount rate   4.6 % 4.6 %   For the quarters ended June 30, 2021 and 2020, cash paid for leases included in our operating cash flow activities were $ 7.5 million and $ 7.0 million, respectively, and our financing cash flow activities were $ 45.2 million and $ 68.6 million, respectively.   Non-cash activities of ROU assets in exchange for lease liablities were $2.4 million and $4.7 million for the first quarter of fiscal 2022 and 2021, respectively. The components of lease costs were as follows:       Three Months Ended     June 30, 2021   June 30, 2020     (Unaudited)     (In thousands)           Operating lease costs $ 8,077 $ 7,137           Finance lease cost:         Amortization of right-of-use assets $ 183,277 $ 40,836 Interest on lease liabilities   4,571   6,282 Total finance lease cost $ 187,848 $ 47,118 Maturities of lease liabilities were as follows:       Finance leases   Operating leases     (Unaudited) Years ending June 30,   (In thousands)           2022 $ 168,277 $ 24,926 2023   132,482   22,560 2024   98,586   21,418 2025   68,555   6,414 2026   35,679   3,560 Thereafter   –   61,302 Total lease payments   503,579   140,180 Less: imputed interest   (35,095)   (50,790) Present value of lease liabilities $ 468,484 $ 89,390
v3.21.2
Contingencies
3 Months Ended
Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
9. Contingencies 9. Contingencies COVID-19 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. 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 2022, and beyond.   CARES Act The Coronavirus Aid, Relief and Economic Security Act (“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. As a result of the federal income tax provisions of the CARES Act, we have filed applicable forms with the Internal Revenue Service (“IRS”) to carryback net operating losses. These refund claims total approximately $ 366 million, of which we have received approximately $159 million in the first quarter of fiscal 2022 and another approximately $84 million in July 2021 and 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. 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.
v3.21.2
Related Party Transactions
3 Months Ended
Jun. 30, 2021
Related Party Transactions [Abstract]  
10. Related Party Transactions 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, LLC 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 Related Party Revenue       Quarter Ended June 30,     2021   2020     (Unaudited)     (In thousands) U-Haul management fee revenue from Blackwater $ 7,180 $ 6,148 U-Haul management fee revenue from Mercury   1,269   1,199   $ 8,449 $ 7,347   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 $ 11.3 million and $ 10.1 million from the above-mentioned entities during the first quarter of fiscal 2022 and 2021, 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,     2021   2020     (Unaudited)     (In thousands) U-Haul lease expenses to Blackwater $ 626 $ 657 U-Haul commission expenses to Blackwater   22,880   15,332   $ 23,506 $ 15,989   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, 2021, 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 $ 7.2 million, expenses of $0.6 million and cash flows of $ 6.4 million during the first quarter of fiscal 2022. Revenues and commission expenses related to the Dealer Agreements were $ 108.6 million and $22.9 million, respectively, during the first quarter of fiscal 2022. Management determined that we do not have a variable interest pursuant to the variable interest entity model under Accounting Standards Codification (“ASC”) 810 – Consolidation 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,     2021   2021     (Unaudited)         (In thousands) U-Haul receivable from Blackwater $ 28,840 $ 27,116 U-Haul receivable from Mercury   6,371   9,632 Other (a)   (730)   (1,353)   $ 34,481 $ 35,395 (a)       Timing differences for intercompany balances with insurance subsidiaries resulting from the three-month difference in reporting periods.
v3.21.2
Consolidating Financial Information by Industry Segment
3 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
11. Consolidating Financial Information by Industry Segment   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.
v3.21.2
Industry Segment and Geographic Area Data
3 Months Ended
Jun. 30, 2021
Segments, Geographical Areas [Abstract]  
12. Industry Segment and Geographic Area Data 12. Industry Segment and Geographic Area Data     United States   Canada   Consolidated     (Unaudited)     (All amounts are in thousands of U.S. $'s) Quarter Ended June 30, 2021             Total revenues $ 1,396,361 $ 76,495 $ 1,472,856 Depreciation and amortization, net of gains on disposal   127,650   (1,540)   126,110 Interest expense   38,128   1,050   39,178 Pretax earnings   437,949   16,801   454,750 Income tax expense   105,302   4,273   109,575 Identifiable assets   14,661,722   453,160   15,114,882               Quarter Ended June 30, 2020             Total revenues $ 942,803 $ 44,434 $ 987,237 Depreciation and amortization, net of gains on disposal   168,526   3,777   172,303 Interest expense   38,654   867   39,521 Pretax earnings   111,949   2,369   114,318 Income tax expense   25,783   809   26,592 Identifiable assets   13,279,882   432,477   13,712,359
v3.21.2
Employee Benefit Plans
3 Months Ended
Jun. 30, 2021
Compensation and Retirement Disclosure [Abstract]  
13. Employee Benefit Plans 13. Employee Benefit Plans The components of the net periodic benefit costs with respect to postretirement benefits were as follows:       Quarter Ended June 30,     2021   2020     (Unaudited)     (In thousands)           Service cost for benefits earned during the period $ 350 $   317 Other components of net periodic benefit costs:         Interest cost on accumulated postretirement benefit   227   230 Other components   53   17 Total other components of net periodic benefit costs   280   247 Net periodic postretirement benefit cost $ 630 $   564
v3.21.2
Fair Value Measurements
3 Months Ended
Jun. 30, 2021
Fair Value Disclosures [Abstract]  
14. Fair Value Measurements 14. 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 are 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. 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     Carrying               Total Estimated As of June 30, 2021   Value   Level 1   Level 2   Level 3   Fair Value     (Unaudited) Assets   (In thousands) Reinsurance recoverables and trade receivables, net $ 233,056 $ – $ – $ 233,056 $ 233,056 Mortgage loans, net   428,140   –   –   428,140   428,140 Other investments   97,753   –   –   97,753   97,753 Total $ 758,949 $ – $ – $ 758,949 $ 758,949                                             Liabilities                     Notes, loans and finance leases payable   4,702,127   –   4,702,127   –   4,497,078 Total $ 4,702,127 $ – $ 4,702,127 $ – $ 4,497,078       Fair Value Hierarchy     Carrying               Total Estimated As of March 31, 2021   Value   Level 1   Level 2   Level 3   Fair Value     (In thousands) Assets                     Reinsurance recoverables and trade receivables, net $ 224,426 $ – $ – $ 224,426 $ 224,426 Mortgage loans, net   391,230   –   –   391,230   391,230 Other investments   98,529   –   –   98,529   98,529 Total $ 714,185 $ – $ – $ 714,185 $ 714,185                                             Liabilities                     Notes, loans and finance leases payable   4,698,615   –   4,698,615   –   4,449,691 Total $ 4,698,615 $ – $ 4,698,615 $ – $ 4,449,691   The following tables represent the financial assets and liabilities on the condensed consolidated balance sheets as of June 30, 2021 and March 31, 2021 that are measured at fair value on a recurring basis and the level within the fair value hierarchy.   As of June 30, 2021   Total   Level 1   Level 2   Level 3     (Unaudited) Assets   (In thousands) Short-term investments $ 1,311,376 $ 1,311,376 $ – $ – Fixed maturities - available for sale   2,703,053   7,185   2,695,712   156 Preferred stock   29,408   29,408   –   – Common stock   22,672   22,672   –   – Derivatives   6,789   6,789   –   – Total $ 4,073,298 $ 1,377,430 $ 2,695,712 $ 156                                     Liabilities                 Derivatives   4,222   –   4,222   – Total $ 4,222 $ – $ 4,222 $ –     As of March 31, 2021   Total   Level 1   Level 2   Level 3     (In thousands) Assets                 Short-term investments $ 839,250 $ 839,250 $ – $ – Fixed maturities - available for sale   2,653,539   6,967   2,646,415   157 Preferred stock   21,677   21,677   –   – Common stock   20,440   20,440   –   – Derivatives   6,601   6,601   –   – Total $ 3,541,507 $ 894,935 $ 2,646,415 $ 157                                     Liabilities                 Derivatives   5,141   –   5,141   – Total $ 5,141 $ – $ 5,141 $ –   The fair value measurements for our assets using significant unobservable inputs (Level 3) were $ 0.2 million for both June 30, 2021 and March 31, 2021.
v3.21.2
Revenue Recognition
3 Months Ended
Jun. 30, 2021
Revenue From Contract With Customer [Abstract]  
Revenue Recognition 15. Revenue Recognition Revenue Recognized in Accordance with Topic 606 ASC Topic 606, Revenue from Contracts with Customers (Topic 606), outlines a five-step model for entities to use in accounting for revenue arising from contracts with customers. The standard applies to all contracts with customers except for leases, insurance contracts, financial instruments, certain nonmonetary exchanges and certain guarantees. The standard also requires disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments.   We enter into contracts that may include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of amounts collected from customers for taxes, such as sales tax, and remitted to the applicable taxing authorities. We account for a contract under Topic 606 when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. For contracts scoped into this standard, revenue is recognized when (or as) the performance obligations are satisfied by means of transferring goods or services to the customer as applicable to each revenue stream as discussed below. There were no material contract assets or liabilities as of June 30, 2021 and March 31, 2021. Sales of self-moving and self-storage related products are recognized at the time that title passes and the customer accepts delivery. The performance obligations identified for this portfolio of contracts include moving and storage product sales, installation services and/or propane sales. Each of these performance obligations has an observable stand-alone selling price. We concluded that the performance obligations identified are satisfied at a point in time under Topic 606, which is consistent with the timing of our revenue recognition under legacy guidance. The basis for this conclusion is that the customer does not receive the product/propane or benefit from the installation services until the related performance obligation is satisfied. These products/services being provided have an alternative use as they are not customized and can be sold/provided to any customer. In addition, we only have the right to receive payment once the products have been transferred to the customer or the installation services have been completed. Although product sales have a right of return policy, our estimated obligation for future product returns is not material to the financial statements at this time. Property management fees are recognized over the period that agreed-upon services are provided. The performance obligation for this portfolio of contracts is property management services, which represents a series of distinct days of service, each of which is comprised of activities that may vary from day to day. However, those tasks are activities to fulfill the property management services and are not separate promises in the contract. We determined that each increment of the promised service is distinct in accordance with paragraph 606-10-25-19. This is because the customer can benefit from each increment of service on its own and each increment of service is separately identifiable because no day of service significantly modifies or customizes another and no day of service significantly affects either the entity’s ability to fulfill another day of service or the benefit to the customer of another day of service. As such, we concluded that the performance obligation is satisfied over time under Topic 606, which is consistent with the timing of our revenue recognition under legacy guidance for the Management Fee component of the compensation received in exchange for the service. Additionally, in certain contracts the Company has the ability to earn an incentive fee based on operational results. Historically, these fees have been recognized once fully determinable. Under Topic 606, we measure and recognize the progress toward completion of the performance obligation on a quarterly basis using the most likely amount method to determine an accrual for the incentive fee portion of the compensation received in exchange for the property management service. The variable consideration recognized is subject to constraints due to a range of possible consideration amounts based on actual operational results. The amount accrued in the first quarter of fiscal 2022 did not have a material effect on our financial statements. Other revenue consists of numerous services or rentals, of which U-Box contracts and service fees from Moving Help are the main components. The performance obligations identified for U-Box contracts are fees for rental, storage and shipping of U-Box containers to a specified location, each of which are distinct. A contract may be partially within the scope of Topic 606 and partially within the scope of other topics. The rental and storage obligations in U-Box contracts meet the definition of a lease in Topic 842, while the shipping obligation represents a contract with a customer accounted for under Topic 606. Therefore, we allocate the total transaction price between the performance obligations of storage fees and rental fees and the shipping fees on a standalone selling price basis. U-Box shipping fees are collected once the shipment is in transit. Shipping fees in U-Box contracts are set at the initiation of the contract based on the shipping origin and destination, and the performance obligation is satisfied over time under Topic 606 which is consistent with the timing of our revenue recognition under legacy guidance. U-Box shipping contracts span over a relatively short period of time, and the majority of these contracts begin and end within the same fiscal year. Moving Help services fees are recognized in accordance with Topic 606. Moving Help services are generated as we provide a neutral venue for the connection between the service provider and the customer for agreed upon services. We do not control the specified services provided by the service provider before that service is transferred to the customer. Revenue Recognized in Accordance withTopic 842/840 The Company’s self-moving rental revenues meet the definition of a lease pursuant to the guidance in Topic 842 because those substitution rights do not provide an economic benefit to the Company that would exceed the cost of exercising the right.  Therefore, upon adoption of Topic 842 on April 1, 2019, self-rental contracts are being accounted for as leases.  We do not expect this change to result in a change in the timing and pattern of recognition of the related revenues due to the short-term nature of the self-moving rental contracts. Please see Note 8, Leases, of the Notes to the Condensed Consolidated Financial Statements.   Self-moving rentals are recognized over the contract period that trucks and moving equipment are rented. We offer two types of self-moving rental contracts, one-way rentals and in-town rentals, which have varying payment terms. Customer payment is received at the initiation of the contract for one-way rentals which covers an allowable limit for equipment usage. An estimated fee in the form of a deposit is received at the initiation of the contract for in-town rentals, and final payment is received upon the return of the equipment based on actual fees incurred. The contract price is estimated at the initiation of the contract, as there is variable consideration associated with ratable fees incurred based on the number of days the equipment is rented and the number of miles driven. Variable consideration is estimated using the most likely amount method which is based on the intended use of the rental equipment by the customer at the initiation of the contract. Historically, the variability in estimated transaction pricing compared to actual is not significant due to the relatively short duration of rental contracts. Each performance obligation has an observable stand-alone selling price. The input method of passage of time is appropriate as there is a direct relationship between our inputs and the transfer of benefit to the customer over the life of the contract. Self-moving rental contracts span a relatively short period of time, and the majority of these contracts began and ended within the same fiscal year. Self-storage revenues are recognized as earned over the contract period based upon the number of paid storage contract days. We lease portions of our operating properties to tenants under agreements that are classified as operating leases. We recognize the total minimum lease payments provided for under the leases on a straight-line basis over the lease term. Generally, under the terms of our leases, the majority of our rental expenses, including common area maintenance, real estate taxes and insurance, are recovered from our customers. The following table summarizes the minimum lease payments due from our customers and operating property tenants on leases for the next five years and thereafter:       Years Ending June 30,     2022   2023   2024   2025   2026   Thereafter     (Unaudited)     (In thousands)                           Self-moving equipment rentals $ 6,560 $ – $ – $ – $ – $ – Property lease revenues   16,072   12,621   8,866   6,856   5,398   53,835 Total $ 22,632 $ 12,621 $ 8,866 $ 6,856 $ 5,398 $ 53,835   The amounts above do not reflect future rental revenue from the renewal or replacement of existing leases. Revenue Recognized in Accordance with Other Topics 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. Life insurance premiums are recognized in accordance with existing guidance in Topic 944 – Financial Services – Insurance. Property and casualty insurance premiums are recognized as revenue over the policy periods. Interest and investment income are recognized as earned. Property and casualty premiums are recognized in accordance with existing guidance in Topic 944 – Financial Services – Insurance. Net investment and interest income has multiple components. Interest income from bonds and mortgage notes are 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. Net investment and interest income is recognized in accordance with existing guidance in Topic 825 – Financial Instruments.   In the following table, revenue is disaggregated by timing of revenue recognition:     Quarter Ended June 30,     2021   2020     (Unaudited)     (In thousands)           Revenues recognized over time: $   79,815 $   44,938 Revenues recognized at a point in time:   120,718   104,848 Total revenues recognized under ASC 606   200,533   149,786           Revenues recognized under ASC 842 or 840   1,191,010   774,694 Revenues recognized under ASC 944   46,314   45,775 Revenues recognized under ASC 320   34,999   16,982 Total revenues $   1,472,856 $   987,237 In the above table, the revenues recognized over time include property management fees, the shipping fees associated with U-Box rentals and a portion of other revenues. Revenues recognized at a point in time include self-moving equipment rentals, self-moving and self-storage products and service sales and a portion of other revenues . We recognized liabilities resulting from contracts with customers for self-moving equipment rentals, self-storage revenues, U-Box revenues and tenant revenue, in which the length of the contract goes beyond the reported period end, although rental periods of the equipment, storage and U-Box contract are generally short-term in nature. The timing of revenue recognition results in liabilities that are reflected in deferred income on the balance sheet.
v3.21.2
Allowance for Credit Losses
3 Months Ended
Jun. 30, 2021
Allowance For Credit Loss [Abstract]  
Allowance For Credit Losses [Text Block] 16. Allowance for Credit Losses Trade Receivables Moving and Storage has two ( 2 ) primary components of trade receivables, receivables from corporate customers and credit card receivables from sales and rental of equipment.   For credit card receivable, the Company uses a trailing 13 months average historical chargeback percentage of total credit card receivable. The Company rents equipment to corporate customers in which payment terms are 30 days. The Company performs ongoing credit evaluations of its customers and assesses each customer’s credit worthiness. In addition, the Company monitors collections and payments from its customers and maintains an allowance 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. Management believes that the historical loss information it has compiled is a reasonable base on which to determine expected credit losses for trade receivables because the composition of trade receivables as of that date is consistent with that used in developing the historical credit-loss percentages (i.e., the similar risk characteristics of its customers and its lending practices have not changed significantly over time).   To adjust the historical loss rates to reflect the effects of these differences in current conditions and forecasted changes, management assigns a rating to each customer which varies depending on the assessment of risk. Management estimated the loss rate at approximately 2%. Management developed this estimate based on its knowledge of past experience for which there were similar improvements in the economy. As a result, management applied the applicable credit loss rates to determine the expected credit loss estimate for each aging category. Accordingly, the allowance for expected credit losses as of June 30, 2021 was $ 2.5 million. Available-for-Sale 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.  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.   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, 2021. Accrued Interest Receivable Accrued interest receivables on available for sale securities totaled $ 26.6 million as of March 31, 2021 and are excluded from the estimate of credit losses. As outlined in subtopic 326-20-30-5A, we have elected not to measure an allowance on accrued interest receivables as our practice is to write off the uncollectible balance in a timely manner. Furthermore, we have elected to wrtie off accrued interest receivables by reversing interest income (in accordance with subtopic 326-20-35-8A). Mortgage loans, net Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at amortized cost.   An allowance for credit losses is determined using a similar methodology as before the adoption of Topic 326.   Modeling for the Company’s mortgage loans is based on inputs most highly correlated to defaults, including loan-to-value, occupancy, and payment history. Historical credit loss experience provides additional support for the estimation of expected credit losses. In assessing the credit losses, the portfolio is reviewed on a collective basis, using loan-specific cash flows to determine the fair value of the collateral in the event of default.   Adjustments to this analysis are made to assess loans with a loan-to-value of 65% or greater. These loans are evaluated on an individual basis and loan specific risk characteristics such as occupancy levels, expense, income growth and other relevant available information from internal and external sources relating to past events, current conditions, and reasonable and supportable forecasts. When management determines that foreclosure is probable, an allowance for expected credit losses based on the fair value of the collateral is recorded. Reinsurance recoverable Reinsurance recoverable on paid and unpaid benefits was less than 1 % of the total assets as of March 31, 2021 which is immaterial based on historical loss experience and high credit rating of the reinsurers. Premium receivables Premium receivables   were $ 2.6 million as of March 31, 2021 in which the credit loss allowance is immaterial based on our ability to cancel the policy if the policyholder doesn't pay premiums. The following details the changes in the Company’s reserve allowance for credit losses for trade receivables, fixed maturities and investments, other:       Allowance for Credit Losses     Trade Receivables   Investments, Fixed Maturities   Investments, other   Total     (Unaudited)     (in thousands) Balance as of March 31, 2021 $ 2,835 $ 1,320 $ 501 $ 4,656 Allowance change   (291)   (279)   4   (566) Write-offs against allowance   –   –   –   – Recoveries   –   –   –   – Balance as of June 30, 2021 $ 2,544 $ 1,041 $ 505 $ 4,090
v3.21.2
Accounting Pronouncements
3 Months Ended
Jun. 30, 2021
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]  
New Accounting Pronouncements And Changes In Accounting Principles [Text Block]   17.   Accounting Pronouncements Adoption of New Accounting Pronouncements In April 1, 2021, we adopted ASU 2020-08, Clarifying Guidance on Amortization of the Excess of the Cost Basis of Certain Callable Debt Securities Over the Amount Repayable . This standard requires that, for each reporting period, callable debt securities be reevaluated to determine if they remain subject to the guidance, which will depend on the amortized cost basis of the security and the terms of the next call option. The guidance is effective for fiscal years beginning after December 15, 2020. The adoption of the standard did not have a material impact on our consolidated financial statements. Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued 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 amendment prescribes standardized liability discount rate, consistency in measurement of market risk benefits, simplified amortization of deferred acquisition costs and enhanced disclosures. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 31, 2020. In November 2020, FASB issued ASU 2020-11, Financial Services – Insurance (Topic 944) , which deferred the effective date of ASU 2018-12 to years beginning after December 15, 2022. We are currently in the process of evaluating the impact of the adoption of ASU 2018-12 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. 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 LIBOR and other interbank offered rates to alternative reference rates, such as 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 this standard 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.