AMERCO /NV/, 10-K filed on 25 May 22
v3.22.1
Document and Entity Information - USD ($)
12 Months Ended
Mar. 31, 2022
May 25, 2022
Sep. 30, 2021
Document and Entity Information [Abstract]      
Entity Registrant Name AMERCO    
Entity Central Index Key 0000004457    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Current Fiscal Year End Date --03-31    
Entity Filer Category Large Accelerated Filer    
Entity Well-known Seasoned Issuer Yes    
Entity Public Float     $ 6,375,692,681
Document Fiscal Year Focus 2022    
Document Type 10-K    
Document Fiscal Period Focus FY    
Document Period End Date Mar. 31, 2022    
Amendment Flag false    
Entity Common Stock, Shares Outstanding   19,607,788  
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity File Number 001-11255    
Entity Tax Identification Number 88-0106815    
Entity Address Address Line 1 5555 Kietzke Lane    
Entity Address Address Line 2 Ste. 100    
Entity Address City Or Town Reno    
Entity Address State Or Province NV    
Entity Address Postal Zip Code 89511    
City Area Code 775    
Local Phone Number 688-6300    
Security 12b Title Common stock, $0.25 par value    
Trading Symbol UHAL    
Security Exchange Name NASDAQ    
Entity Interactive Data Current Yes    
Entity Incorporation State Country Code NV    
Document Annual Report true    
Document Transition Report false    
Auditor Name BDO USA, LLP    
Auditor Location Phoenix, Arizona    
Auditor Firm ID 243    
v3.22.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2022
Mar. 31, 2021
ASSETS:    
Cash and cash equivalents $ 2,704,137 $ 1,194,012
Reinsurance recoverables and trade receivables, net 229,343 224,426
Inventories, net 158,888 105,577
Prepaid expenses 236,915 469,144
Investments, fixed maturities and marketable equities 2,893,399 2,695,656
Investments, other 543,755 489,759
Deferred policy acquisition costs, net 103,828 89,749
Other assets 60,409 47,730
Right of use assets, financing, net 620,824 877,038
Right of use assets, operating 74,382 92,505
Related party assets 47,851 35,395
Subtotal assets 7,673,731 6,320,991
Property, plant and equipment, at cost:    
Land 1,283,142 1,075,813
Buildings and improvements 5,974,639 5,163,705
Furniture and equipment 846,132 786,505
Property, plant and equipment (gross) 13,358,406 11,413,668
Less: Accumulated depreciation (3,732,556) (3,083,053)
Total property, plant and equipment 9,625,850 8,330,615
Total assets 17,299,581 14,651,606
Liabilities:    
Accounts payable and accrued expenses 677,785 645,575
Notes, loans and leases payable 6,022,497 4,668,907
Operating lease liabilities 74,197 92,510
Policy benefits and losses, claims and loss expenses payable 978,254 997,701
Liabilities from investment contracts 2,336,238 2,161,530
Other policyholders' funds and liabilities 10,812 12,420
Deferred income 49,157 42,592
Deferred income taxes, net 1,265,358 1,178,489
Total liabilities 11,414,298 9,799,724
Commitments and contingencies (notes 9, 16, 17 and 18)
Stockholders' equity:    
Additional paid-in capital 453,819 453,819
Accumulated other comprehensive loss 46,384 106,857
Retained earnings 6,052,233 4,958,359
Total stockholders' equity 5,885,283 4,851,882
Total liabilities and stockholders' equity 17,299,581 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
Series A Common Stock [Member]    
Stockholders' equity:    
Common stock, value, issued 0 0
Amerco Common Stock [Member]    
Stockholders' equity:    
Common stock, value, issued 10,497 10,497
Common Stock in Treasury [Member]    
Stockholders' equity:    
Treasury stock, value (525,653) (525,653)
Preferred Stock in Treasury [Member]    
Stockholders' equity:    
Treasury stock, value (151,997) (151,997)
Rental Trailers and Other Rental Equipment [Member]    
Property, plant and equipment, at cost:    
Property subject to or available for operating lease, gross 615,679 477,921
Rental Trucks [Member]    
Property, plant and equipment, at cost:    
Property subject to or available for operating lease, gross $ 4,638,814 $ 3,909,724
v3.22.1
Condensed Consolidated Balance Sheets Parenthetical
Mar. 31, 2022
$ / shares
shares
Series Preferred Stock With or Without Par Value Authorized [Member]  
Preferred stock:  
Preferred stock, shares authorized 50,000,000
Series A Preferred Stock [Member]  
Preferred stock:  
Preferred stock, shares authorized 6,100,000
Preferred stock, shares issued 6,100,000
Series B Preferred Stock [Member]  
Preferred stock:  
Preferred stock, shares authorized 100,000
Series Common Stock With or Without Par Value Authorized [Member]  
Common stock:  
Common stock, shares authorized 250,000,000
Serial Common Stock [Member]  
Common stock:  
Common stock, shares authorized 10,000,000
Common stock, par or stated value per share | $ / shares $ 0.25
Common Stock [Member]  
Common stock:  
Common stock, shares authorized 250,000,000
Common stock, par or stated value per share | $ / shares $ 0.25
Amerco Common Stock [Member]  
Common stock:  
Common stock, shares authorized 250,000,000
Common stock, shares, issued 41,985,700
Common stock, shares, outstanding 19,607,788
Common stock, par or stated value per share | $ / shares $ 0.25
Common Stock in Treasury [Member]  
Treasury stock:  
Treasury stock, shares 22,377,912
Preferred Stock in Treasury [Member]  
Treasury stock:  
Treasury stock, shares 6,100,000
v3.22.1
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
12 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Mar. 31, 2020
Revenues:      
Self-moving equipment rentals $ 3,958,807 $ 3,083,317 $ 2,692,413
Self-storage revenues 617,120 477,262 418,741
Self-moving and self-storage products and service sales 351,447 344,929 265,091
Property management fees 35,194 31,603 30,406
Life insurance premiums 111,027 121,609 127,976
Property and casualty insurance premiums 86,518 68,779 66,053
Net investment and interest income 148,261 122,938 137,829
Other revenue 431,373 291,548 240,359
Total revenues 5,739,747 4,541,985 3,978,868
Costs and expenses:      
Operating expenses 2,676,541 2,187,684 2,117,148
Commission expenses 429,581 329,609 288,332
Cost of sales 259,585 214,059 164,018
Benefits and losses 186,647 179,512 174,836
Amortization of deferred policy acquisition costs 33,854 28,293 31,219
Lease expense 29,910 28,470 26,882
Depreciation, net of (gains) losses on disposals 482,752 609,930 637,063
Net gains on disposal of real estate (4,120) 3,281 (758)
Total costs and expenses 4,094,750 3,580,838 3,438,740
Earnings from operations 1,644,997 961,147 540,128
Other components of net periodic benefit costs (1,120) (987) (1,054)
Interest expense (167,424) (163,502) (160,950)
Fees and amortization on early extinguishment of debt (956) 0 0
Pretax earnings 1,475,497 796,658 378,124
Income tax expense (352,211) (185,802) 63,924
Earnings available to common shareholders $ 1,123,286 $ 610,856 $ 442,048
Basic and diluted earnings per common share $ 57.29 $ 31.15 $ 22.55
Weighted average common shares outstanding: basic and diluted 19,607,788 19,607,788 19,603,708
v3.22.1
Condensed Consolidated Statements of Operations Parenthetical - USD ($)
$ in Thousands
12 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Mar. 31, 2020
Depreciation:      
Net gains on disposal of personal property $ (214,203) $ (54,071) $ (27,057)
Related party:      
Related party revenues, net of eliminations 35,194 31,603 30,406
Related party, costs and expenses, net of eliminations $ 90,733 $ 71,824 $ 64,697
v3.22.1
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
12 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Mar. 31, 2020
Comprehensive income (loss) (pretax):      
Net earnings $ 1,475,497 $ 796,658 $ 378,124
Comprehensive income (loss) (tax effect):      
Net earnings (352,211) (185,802) 63,924
Comprehensive income (loss) (net of tax):      
Net earnings 1,123,286 610,856 442,048
Other comprehensive income (loss):      
Foreign currency translation (pretax) (2,828) (5,694) 9,377
Foreign currency translation (tax effect) 0 0 0
Foreign currency translation (net of tax) (2,828) (5,694) 9,377
Unrealized gain (loss) on investments (pretax) (78,452) 96,170 124,566
Unrealized gain (loss) on investments (tax effect) 15,826 (19,201) (26,623)
Unrealized gain (loss) on investments (net of tax) (62,626) 76,969 97,943
Change in fair value of cash flow hedges (pretax) 605 (569) (8,352)
Change in fair value of cash flow hedges (tax effect) (148) 140 2,051
Change in fair value of cash flow hedges (net of tax) 457 (429) (6,301)
Amounts reclassified into earnings on hedging activities, (pre tax) 3,948 3,640 (3)
Amounts reclassified into earnings on hedging activities (tax effect) (970) (894) 1
Amounts reclassified into earnings on hedging,( net of tax) 2,978 2,746 (2)
Postretirement benefit obligation gain (loss) (pretax) 2,049 (1,838) 441
Postretirement benefit obligation gain (loss) (tax effect) (503) 451 (108)
Postretirement benefit obligation gain (loss) (net of tax) 1,546 (1,387) 333
Total other comprehensive income (loss) (pretax) (74,678) 91,709 126,029
Total other comprehensive income (loss) (tax effect) 14,205 (19,504) (24,679)
Total other comprehensive income loss, net (60,473) 72,205 101,350
Total comprehensive income 1,400,819 888,367 504,153
Total comprehensive income, tax (338,006) (205,306) 39,245
Total comprehensive income, net $ 1,062,813 $ 683,061 $ 543,398
v3.22.1
Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Retained Earnings [Member]
Less: Treasury Common Stock [Member]
Less: Treasury Preferred Stock [Member]
Less: Unearned Employee Stock Ownership Plan Shares [Member]
Balance at Mar. 31, 2019 $ 3,692,389 $ 10,497 $ 453,326 $ (66,698) $ 3,976,962 $ (525,653) $ (151,997) $ (4,048)
Consolidated statement of change in equity                
Increase in market value of released ESOP shares 493 0 493 0 0 0 0 0
Release of unearned ESOP Shares 4,253 0 0 0 0 0 0 4,253
Purchase of ESOP shares (205) 0 0 0 0 0 0 (205)
Foreign currency translation 9,377 0 0 9,377 0 0 0 0
Unrealized net gain (loss) on investments, net of tax 97,943 0 0 97,943 0 0 0 0
Change in fair value of cash flow hedges, net of tax (6,301) 0 0 (6,301) 0 0 0 0
Amounts reclassified into earnings on hedging activities (2) 0 0 (2) 0 0 0 0
Adjustment to postretirement benefit obligation 333 0 0 333 0 0 0 0
Net earnings 442,048 0 0 0 442,048 0 0 0
Common stock dividends (19,608) 0 0 0 (19,608) 0 0 0
Net activity 528,331 0 493 101,350 422,440 0 0 4,048
Balance at Mar. 31, 2020 4,220,720 10,497 453,819 34,652 4,399,402 (525,653) (151,997) 0
Consolidated statement of change in equity                
Adjustment for adoption of ASU 2016-13 (2,880) 0 0 0 (2,880) 0 0 0
Foreign currency translation (5,694) 0 0 (5,694) 0 0 0 0
Unrealized net gain (loss) on investments, net of tax 76,969 0 0 76,969 0 0 0 0
Change in fair value of cash flow hedges, net of tax (429) 0 0 (429) 0 0 0 0
Amounts reclassified into earnings on hedging activities 2,746 0 0 2,746 0 0 0 0
Adjustment to postretirement benefit obligation (1,387) 0 0 (1,387) 0 0 0 0
Net earnings 610,856 0 0 0 610,856 0 0 0
Common stock dividends (49,019) 0 0 0 (49,019) 0 0 0
Net activity 631,162 0 0 72,205 558,957 0 0 0
Balance at Mar. 31, 2021 4,851,882 10,497 453,819 106,857 4,958,359 (525,653) (151,997) 0
Consolidated statement of change in equity                
Foreign currency translation (2,828) 0 0 (2,828) 0 0 0 0
Unrealized net gain (loss) on investments, net of tax (62,626) 0 0 (62,626) 0 0 0 0
Change in fair value of cash flow hedges, net of tax 457 0 0 457 0 0 0 0
Amounts reclassified into earnings on hedging activities 2,978 0 0 2,978 0 0 0 0
Adjustment to postretirement benefit obligation 1,546 0 0 1,546 0 0 0 0
Net earnings 1,123,286 0 0 0 1,123,286 0 0 0
Common stock dividends (29,412) 0 0 0 (29,412) 0 0 0
Net activity 1,033,401 0 0 (60,473) 1,093,874 0 0 0
Balance at Mar. 31, 2022 $ 5,885,283 $ 10,497 $ 453,819 $ 46,384 $ 6,052,233 $ (525,653) $ (151,997) $ 0
v3.22.1
Consolidated Statement of Changes in Stockholders' Equity Parenthetical - $ / shares
12 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Mar. 31, 2020
Common Stock, Dividends, Per Share, Declared $ 1.50 $ 2.50 $ 1.00
v3.22.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Mar. 31, 2020
Cash flow from operating activities:      
Net earnings $ 1,123,286 $ 610,856 $ 442,048
Adjustments to reconcile net earnings to cash provided by operations:      
Depreciation 696,955 664,001 664,120
Amortization of deferred policy acquisition costs 33,854 28,293 31,219
Amortization of premiums and accretion of discounts related to investments, inc 19,749 14,229 13,317
Amortization of debt issuance costs 5,659 5,948 4,426
Interest credited to policyholders 64,692 55,321 51,857
Change in allowance for losses on trade receivables 4,227 1,206 (14)
Change in allowance for inventory reserves 15,235 1,298 640
Net gains on disposal of personal property (214,203) (54,071) (27,057)
Net gains on disposal of real estate (4,120) 3,281 (758)
Net gains on sales of investments (11,872) (10,058) (13,596)
Net (gains) losses on equity investments (7,837) (394) (3,783)
Deferred income taxes 101,091 68,411 317,893
Net change in other operating assets and liabilities:      
Reinsurance recoverables and trade receivables (9,187) (39,516) 38,129
Inventories and parts (68,536) (5,775) 1,776
Prepaid expenses 232,342 94,359 (391,120)
Capitalization of deferred policy acquisition costs (32,626) (36,162) (24,447)
Other assets (2,706) 29,865 (1,295)
Related party assets (10,357) (487) (5,645)
Accounts payable and accrued expenses 28,752 92,925 (4,530)
Policy benefits and losses, claims and loss expenses payable (19,692) (1,992) (12,618)
Other policyholders' funds and liabilities (1,608) 2,230 (4,857)
Deferred income 5,216 11,567 (1,818)
Related party liabilities (2,079) 60 1,626
Net cash provided by operating activities 1,946,235 1,535,395 1,075,513
Cash flow from investing activities:      
Escrow deposits (9,328) (5,221) 6,617
Purchase of:      
Property, plant and equipment (2,136,537) (1,441,475) (2,309,406)
Short term investments (74,418) (69,929) (61,226)
Fixed maturities investments (627,326) (606,233) (379,349)
Equity securities (19,299) (962) (83)
Preferred stock (8,000) (16,144) 0
Real estate (261) (622) (4,286)
Mortgage loans (158,147) (158,071) (62,016)
Proceeds from sale and paydowns of:      
Property, plant and equipment 623,235 537,484 687,375
Short term investments 51,591 69,718 59,056
Fixed maturities investments 360,937 529,239 268,636
Equity securities 2,046 207 185
Preferred stock 2,000 2,700 2,375
Real estate 113 255 311
Mortgage loans 126,218 29,525 25,162
Net cash used by investing activities (1,867,176) (1,129,529) (1,766,649)
Cash flow from financing activities:      
Borrowings from credit facilities 1,969,474 922,008 1,121,412
Principal repayments on credit facilities (437,506) (662,588) (349,986)
Debt issuance costs (13,156) (5,793) (5,332)
Capital lease payments (166,262) (221,247) (307,782)
Employee stock ownership plan value 0 0 (206)
Common stock dividends paid (29,412) (49,019) (29,404)
Investment contract deposits 347,520 517,856 234,640
Investment contract withdrawals (237,503) (213,864) (151,022)
Net cash provided by financing activities 1,433,155 287,353 512,320
Effects of exchange rate on cash (2,089) 6,441 (533)
Increase (decrease) cash and cash equivalents 1,510,125 699,660 (179,349)
Cash and cash equivalents at the beginning of period 1,194,012 494,352 673,701
Cash and cash equivalents at the end of the period $ 2,704,137 $ 1,194,012 $ 494,352
v3.22.1
Basis of Presentation
12 Months Ended
Mar. 31, 2022
Disclosure Text Block [Abstract]  
Basis of Presentation Note 1. Basis of Presentation AMERCO, a Nevada Corporation (“AMERCO”), has a fiscal year that ends on the 31 st of March for each year that is referenced. Our insurance company subsidiaries have fiscal years that end on the 31 st of December for each year that is referenced. They have been consolidated on that basis. Our insurance companies’ financial reporting processes conform to calendar year reporting as required by state insurance departments. Management believes that consolidating their calendar year into our fiscal year financial statements does not materially affect the financial position or results of operations. We disclose material events, if any, occurring during the intervening period. Consequently, all references to our insurance subsidiaries’ years 2021, 2020 and 2019 correspond to fiscal 2022, 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. Please see Note 3, Accounting Policies – Adoption of New Accounting Pronouncements , of the Notes to Consolidated Financial Statements.
v3.22.1
Principles of Consolidation
12 Months Ended
Mar. 31, 2022
Disclosure Text Block [Abstract]  
Principles of Consolidation Note 2. Principles of Consolidation We apply Accounting Standards Codification (“ASC”) 810 - Consolidation (“ASC 810”) in our principles of consolidation. ASC 810 addresses arrangements where a company does not hold a majority of the voting or similar interests of a variable interest entity (“VIE”). A company is required to consolidate a VIE if it has determined it is the primary beneficiary, which is the entity with the power to direct activities that most significantly affect the economic performance of the VIE and has the obligation absorbs the majority of the losses or benefits. ASC 810 also addresses the policy when a company owns a majority of the voting or similar rights and exercises effective control. A VIE is not self-supportive due to having one or both of the following conditions: (i) it has an insufficient amount of equity for it to finance its activities without receiving additional subordinated financial support or (ii) its owners do not hold the typical risks and rights of equity owners. This determination is made upon the creation of a variable interest and is re-assessed on an on-going basis should certain changes in the operations of a VIE, or its relationship with the primary beneficiary trigger a reconsideration. After a reconsideration event occurs the most recent facts and circumstances are utilized in determining whether or not a company is a VIE, which other company(ies) have a variable interest in the entity, and whether or not the company’s interest is such that it is the primary beneficiary. We will continue to monitor our relationships with the other entities regarding who is the primary beneficiary, which could change based on facts and circumstances of any reconsideration events. Please see Note 19, Related Party Transactions, of the Notes to Consolidated Financial Statements. The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries, which are consolidated under the voting interest model. Intercompany accounts and transactions have been eliminated. Description of Legal Entities AMERCO is the holding company for: U-Haul International, Inc. (“U-Haul”); Amerco Real Estate Company (“Real Estate”); Repwest Insurance Company (“Repwest”); and Oxford Life Insurance Company (“Oxford”). Unless the context otherwise requires, the terms “Company,” “we,” “us” or “our” refer to AMERCO and all of its legal subsidiaries.  Description of Operating Segments AMERCO has three ( 3 ) reportable segments. They are Moving and Storage, Property and Casualty Insurance and Life Insurance. Moving and Storage includes AMERCO, U-Haul, and Real Estate and the wholly-owned subsidiaries of U-Haul and Real Estate. Operations consist of the rental of trucks and trailers, sales of moving supplies, sales of towing accessories, sales of propane, and the rental of fixed and portable moving and storage units to the “do-it-yourself” mover and management of self-storage properties owned by others. Operations are conducted under the registered trade name U-Haul ® throughout the United States and Canada. Property and Casualty Insurance includes Repwest and its wholly-owned subsidiaries and ARCOA Risk Retention Group (“ARCOA”). Property and Casualty Insurance provides loss adjusting and claims handling for U-Haul through regional offices in the United States and Canada. Property and Casualty Insurance also underwrites components of the Safemove ® , Safetow ® , Safemove Plus ® , Safestor ® and Safestor Mobile ® protection packages to U-Haul customers. The business plan for Property and Casualty Insurance includes offering property and casualty products in other U-Haul related programs. ARCOA is a group captive insurer owned by us and our wholly owned subsidiaries whose purpose is to provide insurance products related to our moving and storage business. Life Insurance includes Oxford and its wholly owned subsidiaries. Life Insurance provides life and health insurance products primarily to the senior market through the direct writing and reinsuring of life insurance, Medicare supplement and annuity policies.
v3.22.1
Reinsurance Recoverables and Trade Receivables, Net
12 Months Ended
Mar. 31, 2022
Reinsurance Disclosures [Abstract]  
Reinsurance Recoverables and Trade Receivables, Net Note 4.   Reinsurance Recoverables and Trade Receivables, Net Reinsurance recoverables and trade receivables, net were as follows:       March 31,     2022   2021     (In thousands) Reinsurance recoverable $ 50,586 $ 66,386 Trade accounts receivable   150,285   121,251 Paid losses recoverable   345   276 Accrued investment income   28,689   27,883 Premiums and agents' balances   1,650   2,546 Independent dealer receivable   73   258 Other receivables   6,364   10,247     237,992   228,847 Less: Allowance for credit losses   (8,649)   (4,421)   $ 229,343 $ 224,426
v3.22.1
Investments
12 Months Ended
Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Investments Note 5.   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 $ 27.1 million and $ 27.7 million for December 31, 2021 and 2020, respectively. Available-for-Sale Investments Available-for-sale investments as of March 31, 2022 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   Value Fair           (In thousands) U.S. treasury securities and government obligations $ 128,078 $   7,984 $   – $   (969) $   – $   135,093 U.S. government agency mortgage-backed securities   44,678   280   (42)   (3,111)   –   41,805 Obligations of states and political subdivisions   178,040   15,450   –   (508)   –   192,982 Corporate securities   1,989,212   138,909   (402)   (6,604)   (60)   2,121,055 Mortgage-backed securities   324,029   7,671   (1)   (1,542)   –   330,157   $ 2,664,037 $   170,294 $   ( 445 ) $   ( 12,734 ) $   ( 60 ) $   2,821,092 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   Value Fair           (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)   (640)   (1,320)   2,043,831 Mortgage-backed securities   174,728   11,706   (1)   (8)   –   186,425   $ 2,405,612 $ 250,254 $ ( 224 ) $ ( 783 ) $ ( 1,320 ) $ 2,653,539   We sold available-for-sale securities with a fair value of $ 352.3 million, $ 523.9 million and $ 264.5 million in fiscal 2022, 2021 and 2020, respectively. The gross realized gains on these sales totaled $ 9.5 million, $ 9.6 million and $ 6.4 million in fiscal 2022, 2021 and 2020, respectively. We realized gross losses on these sales of $ 1.4 million, $ 2.1 million and $ 0.2 million in fiscal 2022, 2021 and 2020, respectively.   We adopted Topic 326 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. 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 fiscal year 2022. The adjusted cost and estimated market value of available-for-sale investments by contractual maturity, were as follows:     March 31, 2022   March 31, 2021     Cost Amortized   Value Fair   Cost Amortized   Value Fair     (In thousands) Due in one year or less $ 97,969 $ 99,432 $ 90,142 $ 91,190 Due after one year through five years   541,840   570,135   562,442   601,818 Due after five years through ten years   704,295   765,073   672,733   754,536 Due after ten years   995,904   1,056,295   905,567   1,019,570     2,340,008   2,490,935   2,230,884   2,467,114                   Mortgage backed securities   324,029   330,157   174,728   186,425   $ 2,664,037 $ 2,821,092 $ 2,405,612 $ 2,653,539   Equity investments of common stock and non-redeemable preferred stock were as follows:     March 31, 2022   March 31, 2021     Cost Amortized   Value Fair   Cost Amortized   Value Fair     (In thousands) Common stocks $ 27,674 $ 46,212 $ 9,775 $ 20,440 Non-redeemable preferred stocks   26,054   26,095   20,034   21,677   $ 53,728 $ 72,307 $ 29,809 $ 42,117 Investments, other The carrying value of other investments was as follows:     March 31,     2022   2021     (In thousands) Mortgage loans, net $ 423,163 $ 391,230 Short-term investments   30,916   7,234 Real estate   67,824   68,813 Policy loans   10,309   11,163 Other equity investments   11,543   11,319   $ 543,755 $ 489,759   Mortgage loans are carried at the unpaid balance, less an allowance for expected losses net of any unamortized premium or discount. The portfolio of mortgage loans is principally collateralized by self-storage facilities and commercial properties. The interest rate range on the mortgage loans is 3.5 % to 5.9 % with maturities between 2022 and 2036 . The allowance for expected losses was $ 0.5 million for both March 31, 2022 and 2021. These loans represent first lien mortgages held by us. Mortgage loans are reviewed on an ongoing basis and analysis may include market analysis, estimated valuations of the underlying collateral, loan to value ratios, tenant creditworthiness and other factors. For our mortgage loans, no specifically identified loans were impaired as of March 31, 2022. We have not experienced any material losses related to the notes from individual or groups of notes in any particular industry or geographic area. Short-term investments consist primarily of investments in money market funds, mutual funds and any other investments with short-term characteristics that have original maturities of less than one year at acquisition. These investments are recorded at cost, which approximates fair value. Real estate held for future development or use is carried at the lower of fair value at time of acquisition or current estimated fair value less cost to sell. Other equity investments are carried at cost and assessed for impairment. Insurance policy loans are carried at their unpaid balance.
v3.22.1
Other Assets
12 Months Ended
Mar. 31, 2022
Disclosure Text Block [Abstract]  
Other Assets Note 6.   Other Assets Other assets were as follows:       March 31,     2022   2021     (In thousands) Deposits (debt-related) $ 37,588 $ 33,952 Cash surrender value of life insurance policies   –   567 Deposits (real estate related)   22,821   13,211   $ 60,409 $ 47,730
v3.22.1
Net Investment and Interest Income
12 Months Ended
Mar. 31, 2022
Disclosure Text Block [Abstract]  
Net Investment and Interest Income Note 7.   Net Investment and Interest Income Net investment and interest income, were as follows:       Years Ended March 31,     2022   2021   2020     (In thousands) Fixed maturities $ 111,625 $ 102,021 $ 107,434 Real estate   5,648   5,769   7,304 Insurance policy loans   705   829   974 Mortgage loans   25,850   18,248   17,164 Short-term, amounts held by ceding reinsurers, net and other investments   11,713   3,103   9,807 Investment income   155,541   129,970   142,683 Less: investment expenses   (7,280)   (7,032)   (4,854) Net investment and interest income $ 148,261 $ 122,938 $ 137,829
v3.22.1
Borrowings
12 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Borrowings Note 8.   Borrowings Long-Term Debt Long-term debt was as follows:                       March 31,   2022 Rates   Maturities   2022   2021                     (In thousands) Real estate loan (amortizing term)       1.83 %     2023 $ 50,259 $ 82,913 Senior mortgages 2.70 % - 5.50 % 2023 - 2042   2,206,268   2,125,324 Real estate loans (revolving credit) (a) 1.58 % - 3.14 % 2023 - 2025   535,000   535,000 Fleet loans (amortizing term) 1.61 % - 4.66 % 2022 - 2028   124,651   176,295 Fleet loans (revolving credit) 1.30 % - 2.36 % 2024 - 2026   560,000   535,000 Finance leases (rental equipment) 2.16 % - 5.04 % 2022 - 2026   347,393   513,623 Finance liability (rental equipment) 1.60 % - 4.68 % 2024 - 2030   949,936   644,375 Private placements 2.43 % - 2.88 % 2029 - 2035   1,200,000   – Other obligations 1.50 % - 8.00 % 2022 - 2049   86,206   86,085 Notes, loans and finance leases payable                 $ 6,059,713 $ 4,698,615 Less: Debt issuance costs                   (37,216)   (29,708) Total notes, loans and finance leases payable, net         $ 6,022,497 $ 4,668,907                           (a) Certain loans have interest rate swaps fixing the rate between 3.03% and 3.14% based on current margin         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 LIBOR plus the applicable margin. As of March 31, 2022, the applicable LIBOR was 0.33 % and the applicable margin was 1.50 %, the sum of which was 1.83 %. 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 2.70% and 5.50%. The weighted average interest rate of these loans as of March 31, 2022 was 4.0%.  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 March 31, 2022, 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 March 31, 2022, the applicable LIBOR was between 0.21 % and 0.45 % and the margin was between 1.25 % and 1.50 %, the sum of which was between 1.46 % and 1.85 %. 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. These loan agreements contain fallback language for the replacement of LIBOR. 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 March 31, 2022, the outstanding balance was $ 150.0 million. This loan agreement provides for revolving loans, subject to the terms of the loan agreement. This loan requires monthly interest payments with the unpaid loan balance and accrued and unpaid interest due at maturity. As of March 31, 2022, the applicable LIBOR was 0.21 % and the margin was 1.38 %, the sum of which was 1.59 %. 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. This loan agreement contains fallback language for the replacement of LIBOR. 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 outstanding balance for these revolvers is $ 560.0 million. The interest rates, per the provision of the loan agreements, in aggregate of $ 385.0 million, are the applicable LIBOR plus the applicable margin. As of March 31, 2022, the applicable LIBOR was 0.21 % and the margin was between 1.15 % and 1.25 %, the sum of which was between 1.36 % and 1.46 %. Of this $385.0 million outstanding, $ 100.0 million was fixed with an interest rate of 2.36 %.   The other loan of $175.0 million uses the Secured Overnight Funding Rate which interest rate was 0.05% plus a margin of 1.25% totaling 1.30% as of March 31, 2022.   Only interest is paid on the loans until the last nine months of the respective loan terms when principal becomes due monthly. These loan agreements either contain fallback language for the replacement of LIBOR or are in the process of being amended to add updated language. Finance Leases The Finance Lease balance represents our sale-leaseback transactions of rental equipment. The agreements are generally seven (7) year terms with interest rates ranging from 2.16% to 5.04%.  All of our finance leases are collateralized by our rental fleet. The net book value of the corresponding rental equipment was $620.8 million and $877.0 million as of March 31, 2022 and March 31, 2021, respectively. There were no new financing leases, as assessed under the new leasing guidance, entered into during fiscal 2022. Finance Liabilities Finance liabilities represent our rental equipment financing transactions, and 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, sale-leasebacks are accounted for as a financial liability and the leased assets are capitalized at cost.     Our finance liabilities have an average term of seven (7) years and interest rates ranging from 1.60 % to 4.68 %. These finance liabilities are collateralized by our rental fleet.   The net book value of the corresponding rental equipment was $ 1,068.3 million and $ 718.3 million as of March 31, 2022 and March 31, 2021, respectively Private Placements In September 2021, AMERCO entered into a note purchase agreement to issue $ 600.0 million of fixed rate senior unsecured notes in a private placement offering.   These notes consist of four tranches each totaling $ 150.0 million and funded in September 2021.   The fixed interest rates range between 2.43 % and 2.78 % with maturities between 2029 and 2033 .   Interest is payable semiannually.   In December 2021, AMERCO entered into a note purchase agreement to issue $ 600.0 million of fixed rate senior unsecured notes in a private placement offering. These notes funded in January 2022. These notes consist of three tranches each totaling $ 100.0 million and two tranches each totaling $ 150.0 million.   The fixed interest rates range between 2.55 % and 2.88 % with maturities between 2030 and 2035 .   Interest is payable semiannually.   Other Obligations In February 2011, AMERCO and U.S. Bank, NA (the “Trustee”) entered into the U-Haul Investors Club ® Indenture.   AMERCO and the Trustee entered into this indenture to provide for the issuance of notes by us directly to investors over our proprietary website, uhaulinvestorsclub.com (“U-Notes ® ”). The U-Notes ® are secured by various types of collateral, including, but not limited to, rental equipment and real estate.   U-Notes ® are issued in smaller series that vary as to principal amount, interest rate and maturity.   U-Notes ® are obligations of the Company and secured by the associated collateral; they are not guaranteed by any of the Company’s affiliates or subsidiaries. As of March 31, 2022, the aggregate outstanding principal balance of the U-Notes ® issued was $ 88.5 million, of which $ 2.3 million is held by our insurance subsidiaries and eliminated in consolidation. Interest rates range between 1.50 % and 8.00 % and maturity dates range between 2022 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 December 31, 2021, the deposits had an aggregate balance of $ 60.0 million, for which Oxford pays fixed interest rates between 0.49 % and 1.72 % with maturities between September 30, 2022 and September 29, 2025. As of December 31, 2021, available-for-sale investments held with the FHLB totaled $ 105.6 million, of which $ 62.8 million were pledged as collateral to secure the outstanding advances. The balances of these advances are included within Liabilities from investment contracts on the 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 March 31, 2022 for the next five years and thereafter are as follows:       Years Ended March 31,     2023   2024   2025   2026   2027   Thereafter   Total     (In thousands) Notes, loans and finance leases payable, secured $ 478,954 $ 937,542 $ 898,740 $ 570,127 $ 559,961 $ 2,614,389 $ 6,059,713
v3.22.1
Interest on Borrowings
12 Months Ended
Mar. 31, 2022
Interest Expense, Borrowings [Abstract]  
Interest on Borrowings Note 9.   Interest on Borrowings Interest Expense Components of interest expense include the following:     Years Ended March 31,     2022   2021   2020     (In thousands) Interest expense $ 167,618 $ 165,484 $ 180,444 Capitalized interest   (9,700)   (11,573)   (23,517) Amortization of transaction costs   5,556   5,949   4,427 Interest expense resulting from cash flow hedges   3,950   3,642   (404) Total interest expense   167,424   163,502   160,950 Interest paid in cash, including payments related to derivative contracts, amounted to $ 147.9 million, $ 153.2 million and $ 168.1 million for fiscal 2022, 2021 and 2020, respectively. Interest Rates Interest rates and our revolving credit borrowings were as follows:     Revolving Credit Activity       Years Ended March 31,       2022   2021   2020       (In thousands, except interest rates)   Weighted average interest rate during the year   1.40 % 1.40 % 3.31 % Interest rate at year end   1.49 % 1.40 % 2.86 % Maximum amount outstanding during the year $ 1,105,000 $ 1,175,000 $ 1,086,000   Average amount outstanding during the year $ 1,085,074 $ 1,088,293 $ 1,002,081   Facility fees $ 253 $ 261 $ 193  
v3.22.1
Derivatives
12 Months Ended
Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Note 10.   Derivatives We manage exposure to changes in market interest rates. Our use of derivative instruments is limited to highly effective interest rate swaps to hedge the risk of changes in cash flows (future interest payments) attributable to changes in LIBOR swap rates, with the designated benchmark interest rate being hedged on certain of our LIBOR indexed variable rate debt and a variable rate operating lease. The interest rate swaps effectively fix our interest payments on certain LIBOR indexed variable rate debt. We monitor our positions and the credit ratings of its counterparties and do not currently anticipate non-performance by the counterparties. Interest rate swap agreements are not entered into for trading purposes. These fair values are determined using pricing valuation models which include broker quotes for which significant inputs are observable. They include adjustments for counterparty credit quality and other deal-specific factors, where appropriate and are classified as Level 2 in the fair value hierarchy. The derivative fair values reflected in prepaid expense and accounts payable and accrued expenses in the consolidated balance sheet were as follows:             March 31, 2022   March 31, 2021     (In thousands) Interest rate contracts designated as hedging instruments         Assets $ – $ – Liabilities   587   5,141 Notional amount (debt)   235,000   235,000     The Effect of Interest Rate     Contracts on the Statements of Operations     Years Ended March 31,     2022   2021   2020     (In thousands) (Gain) loss recognized in AOCI on interest rate contracts $ (4,553) $ (3,071) $ 8,355 (Gain) loss reclassified from AOCI into income $ ( 3,948 ) $ ( 3,640 ) $ 3   Gains or losses recognized in income on derivatives are recorded as interest expense in the consolidated statements of operations.   During fiscal year 2022, we recognized an increase in the fair value of our cash flow hedges of $0.5 million, net of taxes.   During fiscal year 2022, we reclassified $ 3.9 million from accumulated other comprehensive income (loss) (“AOCI”) to interest expense.   As of March, 31 2022, we expect to reclassify $ 1.2 million of net gains on interest contracts from AOCI to earnings as interest expense over the next twelve months. We use derivatives to hedge our equity market exposure to indexed annuity products sold by our Life Insurance company. These contracts earn a return for the contractholder based on the change in the value of the S&P 500 index between annual index point dates. We buy and sell listed equity and index call options and call option spreads. The credit risk is with the party in which the options are written. The net option price is paid up front and there are no additional cash requirements or additional contingent liabilities. These contracts are held at fair value on our balance sheet. At December 31, 2021 and 2020, these derivative hedges had a fair value of $ 7.5 million and $ 6.6 million, with notional amounts of $ 416.7   million and $ 282.7   million, respectively. These derivative instruments are included in Investments, other; on the consolidated balance sheets. The fair values of these call options are determined based on quoted market prices from the relevant exchange and are classified as Level 1 in the fair value hierarchy. Although the call options are employed to be effective hedges against our policyholder obligations from an economic standpoint, they do not meet the requirements for hedge accounting under GAAP. Accordingly, the changes in fair value of the call options are recognized each reporting date as a component of net investment and interest income. The change in fair value of the call options include the gains or losses recognized at the expiration of the option term and the changes in fair value for open contracts.
v3.22.1
Accumulated Other Comprehensive Income
12 Months Ended
Mar. 31, 2022
Disclosure Text Block [Abstract]  
Other Comprehensive Income Noncontrolling Interest [Text Block] Note 11.   Accumulated Other Comprehensive Income (Loss) A summary of our AOCI components, net of tax, were as follows:       Foreign Currency Translation   Unrealized Net Gain on Investments   Fair Value of Cash Flow Hedges   Postretirement Benefit Obligation Net Loss   Accumulated Other Comprehensive Income (Loss)           (In thousands) Balance as of March 31, 2019 $ (56,612) $   (7,259) $   107 $   (2,934) $   (66,698) Foreign currency translation   9,377   –   –   –   9,377 Unrealized net gain on investments   –   97,943   –   –   97,943 Change in fair value of cash flow hedges   –   –   (6,301)   –   (6,301) Amounts reclassified into earnings on hedging activities   –   –   (2)   –   (2) Change in post retirement benefit obligations   –   –   –   333   333 Other comprehensive income (loss)   9,377   97,943   (6,303)   333   101,350 Balance as of March 31, 2020 $ (47,235) $   90,684 $   (6,196) $   (2,601) $   34,652 Foreign currency translation   (5,694)   –   –   –   (5,694) Unrealized net gain on investments   –   76,969   –   –   76,969 Change in fair value of cash flow hedges   –   –   (429)   –   (429) Amounts reclassified into earnings on hedging activities   –   –   2,746   –   2,746 Change in post retirement benefit obligations   –   –   –   (1,387)   (1,387) Other comprehensive income (loss)   (5,694)   76,969   2,317   (1,387)   72,205 Balance as of March 31, 2021 $ (52,929) $   167,653 $   (3,879) $   (3,988) $ 106,857 Foreign currency translation   (2,828)   –   –   –   (2,828) Unrealized net loss on investments   –   (62,626)   –   –   (62,626) Change in fair value of cash flow hedges   –   –   457   –   457 Amounts reclassified into earnings on hedging activities   –   –   2,978   –   2,978 Change in post retirement benefit obligations   –   –   –   1,546   1,546 Other comprehensive income (loss)   (2,828)   (62,626)   3,435   1,546   (60,473) Balance as of March 31, 2022 $ ( 55,757 ) $   105,027 $   ( 444 ) $   ( 2,442 ) $   46,384
v3.22.1
Stockholders' Equity
12 Months Ended
Mar. 31, 2022
Stockholders' Equity Attributable to Parent [Abstract]  
Stockholders' Equity Note 12. Stockholders’ Equity The following table lists the dividends that have been declared and issued for fiscal years 2022 and 2021.   Common Stock Dividends Declared Date   Per Share Amount   Record Date   Dividend Date               October 6, 2021 $ 0.50   October 18, 2021   October 29, 2021 August 19, 2021 $ 0.50   September 7, 2021   September 21, 2021 June 9, 2021 $ 0.50   June 24, 2021   July 8, 2021 December 9, 2020 $ 2.00   December 21, 2020   December 30, 2020 August 20, 2020 $ 0.50   September 7, 2020   September 21, 2020 As of March 31, 2022, no awards had been issued under the 2016 AMERCO Stock Option Plan.
v3.22.1
Provision for Taxes
12 Months Ended
Mar. 31, 2022
Disclosure Text Block [Abstract]  
Provision for Taxes Note 13.   Provision for Taxes Earnings before taxes and the provision for taxes consisted of the following:       Years Ended March 31,     2022   2021   2020     (In thousands) Pretax earnings:             U.S. $ 1,431,155 $ 773,030 $ 372,687 Non-U.S.   44,342   23,628   5,437 Total pretax earnings $ 1,475,497 $ 796,658 $ 378,124               Current provision (benefit)             Federal $ 189,488 $ 100,521 $ (373,817) State   55,518   16,572   (9,600) Non-U.S.   6,893   3,404   949     251,899   120,497   (382,468) Deferred provision (benefit)             Federal   90,852   53,957   307,846 State   6,355   9,795   9,728 Non-U.S.   3,105   1,553   970     100,312   65,305   318,544               Provision for income tax expense (benefit) $ 352,211 $ 185,802 $ (63,924)               Income taxes paid (net of income tax refunds received) $ ( 4,548 ) $ 29,044 $ 6,859   The difference between the tax provision at the statutory federal income tax rate and the tax provision attributable to income before taxes was as follows:     Years Ended March 31,       2022   2021   2020       (In percentages)   Statutory federal income tax rate   21.00 % 21.00 % 21.00 % Increase (reduction) in rate resulting from:               NOL tax rate benefit   – % – % (38.62) % State taxes, net of federal benefit   3.24 % 2.53 % 0.02 % Foreign rate differential   0.05 % – % 0.21 % Federal tax credits   (0.19) % (0.99) % (0.53) % Transition tax   – % – % – % Tax-exempt income   (0.03) % (0.08) % (0.17) % Dividend received deduction   – % (0.01) % (0.01) % Other   (0.20) % 0.87 % 1.19 % Actual tax expense (benefit) of operations   23.87 % 23.32 % ( 16.91 ) % Significant components of our deferred tax assets and liabilities were as follows:       March 31,     2022   2021 Deferred tax assets:   (In thousands) Net operating loss and credit carry forwards $ 36,367 $ 30,432 Accrued expenses   114,152   109,740 Policy benefit and losses, claims and loss expenses payable, net   30,572   26,799 Operating leases   15,540   19,370 Total deferred tax assets $ 196,631 $ 186,341           Deferred tax liabilities:         Property, plant and equipment $ 1,395,216 $ 1,280,703 Operating leases   15,540   19,370 Deferred policy acquisition costs   12,962   13,696 Unrealized gains   36,299   48,667 Other   1,972   2,394 Total deferred tax liabilities   1,461,989   1,364,830 Net deferred tax liability $ 1,265,358 $ 1,178,489   On March 27, 2020, former President Trump signed into U.S. federal law the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), which was aimed at providing emergency assistance and health care for individuals, families, and businesses affected by COVID-19 global pandemic and generally supporting the U.S. economy.   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. In particular, the CARES Act allows for NOLs generated in 2018, 2019, or 2020 to be carried back 5 years.    As a result, we filed applicable forms with the IRS to carryback net operating losses. The statutory tax rate for the carryback years was 35% as compared to 21% at present.   Consequently, we recognized a benefit amount of $ 146.0 million for fiscal year 2020.     These refund claims total approximately $ 366 million, of which we have received approximately $ 243 million in fiscal 2022 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. As a result, the NOL and credit carry-forwards in the above table are primarily attributable to state NOLs. As of March 31, 2022 and March 31, 2021, AMERCO had state NOLs of $ 458.5 million and $ 384.9 million, respectively, that will begin to expire March 31, 2023, if not utilized. On March 3, 2021, the IRS notifiied us that our federal inome tax returns for the tax years March 31, 2014, 2015, 2016, 2018 and 2019 were selected for examination. The IRS agent in charged confirmed that this is a limited scope examination arising out of NOL carryback claims and is a standard procedure for the IRS to process the refund. As such, the scope of the exam is expected to be limited to the items reported on Forms 1139 and related schedules only. As of now, we are still working with the IRS agent and there is no audit adjustment for any of the above tax periods. No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations. Determining the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings not subject to the transition tax and additional outside basis difference in these entities (i.e., basis difference in excess of that subject to the one-time transition tax) is not practicable. The Company accounts for uncertainty in income taxes by recognizing the tax benefit or expense from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The Company measures the tax benefits and expenses recognized in the consolidated financial statements from such a position based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. A reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period are as follows:     Unrecognized Tax Benefits     March 31,     2022   2021     (In thousands)           Unrecognized tax benefits beginning balance $ 31,069 $ 29,632 Revaluation based on change in after tax benefit   –   – Additions based on tax positions related to the current year   8,257   1,479 Reductions for tax positions of prior years   –   (42) Additions for tax provisions of prior years   9,525   – Unrecognized tax benefits ending balance $ 48,851 $ 31,069 We recognize interest related to unrecognized tax benefits as interest expense, and penalties as income tax expenses. As of March 31, 2022 and 2021, the amount of interest accrued on unrecognized tax benefits was $ 15.7 million and $ 14.3 million, net of tax. During the current year we recorded expense from interest in the amount of $ 1.4 million, net of tax. We file income tax returns in the U.S. federal jurisdiction, and various states and Canadian jurisdictions. While the Company has ongoing audits in Canada and various state jurisdictions, there have been no proposed or anticipated adjustments that would materially impact the financial statements. With some exceptions, we are no longer subject to audit for years prior to the fiscal year ended March 31, 2019.
v3.22.1
Employee Benefit Plans
12 Months Ended
Mar. 31, 2022
Compensation and Retirement Disclosure [Abstract]  
Employee Benefit Plans Note 14.   Employee Benefit Plans Profit Sharing Plans We provide tax-qualified profit sharing retirement plans for the benefit of eligible employees, former employees and retirees in the United States and Canada. The plans are designed to provide employees with an accumulation of funds for retirement on a tax-deferred basis and provide for annual discretionary employer contributions. Amounts to be contributed are determined by the President and Chairman of the Board of Directors (the “Board”) of the Company under the delegation of authority from the Board, pursuant to the terms of the Profit Sharing Plan. No contributions were made to the profit sharing plan during fiscal 2022, 2021 or 2020. We also provide an employee savings plan which allows participants to defer income under Section 401(k) of the Internal Revenue Code of 1986. ESOP Plan We sponsor an Employee Stock Ownership Plan (“ESOP”) that generally covers all employees with one year or more of service. The ESOP began as a leveraged plan where shares were pledged as collateral for its debt which was originally funded by U-Haul. We made annual contributions to the ESOP equal to the ESOP’s debt service. As the debt was repaid, shares were released from collateral and allocated to active employees, based on the proportion of debt service paid in the year. ESOP shares were committed to be released monthly and ESOP compensation expense was recorded based on the current market price at the end of the month. These shares then become outstanding for the earnings per share computations.  In fiscal 2020 we de-levered the plan and now contributions are made at the discretion of management with expense being recognized upon the decision to contribute.  ESOP compensation expense was $23.0 million, $23.0 million and $10.3 million for fiscal 2022, 2021 and 2020,   respectively, which are included in operating expenses in the consolidated statements of operations. Listed below is a summary of these financing arrangements as of fiscal year-end:     Outstanding as of   Interest Payments Financing Date   March 31, 2022   2022   2021   2020     (In thousands) July, 2009   –   –   –   9 February, 2016   –   –   –   229 Leveraged contributions to the Plan Trust during fiscal 2020 was $ 5.6 million. There was no leveraged contribution in fiscal 2022 and 2021. In fiscal 2022, 2021 and 2020, the Company made non-leveraged contributions of $ 23.0 million, $ 23.0 and $ 4.0 million, respectively to the Plan Trust. Shares held by the ESOP were as follows:     Years Ended March 31,     2022   2021     (In thousands) Allocated shares   890   951 Unreleased shares - leveraged   –   – Fair value of unreleased shares - leveraged $ – $ – Unreleased shares - non-leveraged   –   – Fair value of unreleased shares - non-leveraged $ – $ – The fair value of unreleased shares issued prior to 1992 is defined as the historical cost of such shares. The fair value of unreleased shares issued subsequent to December 31, 1992 is defined as the trading value of such shares as of March 31, 2022 and March 31, 2021, respectively. During fiscals 2022 and 2021, we released for allocation 33,954 and 38,015 of non-leveraged shares, respectively. As of March 31, 2022, it is estimated there will be no shares committed to be released. Post Retirement and Post Employment Benefits We provide a health reimbursement benefit to our eligible U.S. employees and their eligible dependents upon retirement from the Company. The retiree must have attained age sixty-five and earned twenty years of full-time service upon retirement to be awarded the health reimbursement benefit. The health reimbursement benefit is capped at a $ 20,000 lifetime maximum per covered person. Reimbursements are coordinated with Medicare and any other medical policies in force. In addition, retirees who have attained age sixty-five and earned at least twenty years of full-time service upon retirement from the Company are entitled to group term life insurance benefits. The life insurance benefit is $ 3,000 plus $ 100 for each year of employment over twenty years. The benefits are not funded, and claims are paid as they are incurred. We use a March 31 measurement date for our post retirement benefit disclosures. The components of net periodic post retirement benefit cost were as follows:     Years Ended March 31,     2022   2021   2020     (In thousands) Service cost for benefits earned during the period $ 1,401 $ 1,267 $ 1,055 Other components of net periodic benefit costs:             Interest cost on accumulated postretirement benefit   908   919   964 Other components   212   68   90 Total other components of net periodic benefit costs   1,120   987   1,054 Net periodic postretirement benefit cost $ 2,521 $ 2,254 $ 2,109 The fiscal 2022 and fiscal 2021 post retirement benefit liability included the following components:       Years Ended March 31,     2022   2021     (In thousands) Beginning of year $ 30,755 $ 27,503 Service cost for benefits earned during the period   1,401   1,267 Interest cost on accumulated post retirement benefit   908   919 Net benefit payments and expense   (1,021)   (841) Actuarial (gain) loss   (1,837)   1,907 Accumulated postretirement benefit obligation   30,206   30,755           Current liabilities   1,449   1,334 Non-current liabilities   28,757   29,421           Total post retirement benefit liability recognized in statement of financial position   30,206   30,755 Components included in accumulated other comprehensive income (loss):         Unrecognized net loss   (3,237)   (5,286) Cumulative net periodic benefit cost (in excess of employer contribution) $ 26,969 $ 25,469   The discount rate assumptions in computing the information above were as follows:       Years Ended March 31,     2022 2021 2020     (In percentages)   Accumulated postretirement benefit obligation   3.76 % 2.93 % 3.37 %   In December 2003, the Medicare Prescription Drug Improvement and Modernization Act of 2003 became law. Net periodic post retirement benefit cost above includes the effect of the subsidy. The discount rate represents the expected yield on a portfolio of high grade (AA to AAA rated or equivalent) fixed income investments with cash flow streams sufficient to satisfy benefit obligations under the plan when due. Fluctuations in the discount rate assumptions primarily reflect changes in U.S. interest rates. The assumed health care cost trend rate used to measure the accumulated postretirement benefit obligation as of the end of fiscal 2022 was 4.9 % in the initial year and was projected to decline annually to an ultimate rate of 4.0 % in fiscal 2046. The assumed health care cost trend rate used to measure the accumulated post retirement benefit obligation as of the end of fiscal 2021 (and used to measure the fiscal 2022 net periodic benefit cost) was 5.0 % in the initial year and was projected to decline annually to an ultimate rate of 4.0 % in fiscal 2046. Post-employment benefits provided by us, other than upon retirement, are not material. Future net benefit payments are expected as follows:       Future Net Benefit Payments     (In thousands) Year-ended:     2023 $ 1,369 2024   1,536 2025   1,733 2026   1,950 2027   2,170 2028 Through 2032   12,112 Total $ 20,870
v3.22.1
Fair Value Measurements
12 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements Note 15.   Fair Value Measurements Certain assets and liabilities are recorded at fair value on the consolidated balance sheets and are measured and classified based upon a three-tiered approach to valuation. Financial assets and liabilities recorded at fair value and are classified and disclosed in one of the following three categories: Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;   Level 2 – Quoted prices for identical or similar financial instruments in markets that are not considered to be active, or similar financial instruments for which all significant inputs are observable, either directly or indirectly, or inputs other than quoted prices that are observable, or inputs that are derived principally from or corroborated by observable market data through correlation or other means; and Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and are unobservable. These reflect management’s assumptions about the assumptions a market participant would use in pricing the asset or liability. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Fair values of cash equivalents approximate carrying value due to the short period of time to maturity. Fair values of short-term investments, investments available-for-sale, long-term investments, mortgage loans and notes on real estate, and interest rate swap contracts are based on quoted market prices, dealer quotes or discounted cash flows. Fair values of trade receivables approximate their recorded value. Our financial instruments that are exposed to concentrations of credit risk consist primarily of temporary cash investments, trade receivables, reinsurance recoverables and notes receivable. Limited credit risk exists on trade receivables due to the diversity of our customer base and their dispersion across broad geographic markets. We place our temporary cash investments with financial institutions and limit the amount of credit exposure to any one financial institution. We have mortgage receivables, which potentially expose us to credit risk. The portfolio of notes is principally collateralized by self-storage facilities and commercial properties. We have not experienced any material losses related to the notes from individual or groups of notes in any particular industry or geographic area. The estimated fair values were determined using the discounted cash flow method and using interest rates currently offered for similar loans to borrowers with similar credit ratings. 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 c