U-HAUL HOLDING CO /NV/, 10-Q filed on 09 Aug 23
v3.23.2
Document and Entity Information - shares
3 Months Ended
Jun. 30, 2023
Aug. 04, 2023
Document and Entity Information [Abstract]    
Entity Registrant Name U-Haul Holding Company  
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 2024  
Document Type 10-Q  
Document Fiscal Period Focus Q1  
Document Period End Date Jun. 30, 2023  
Amendment Flag false  
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  
Document Quarterly Report true  
Document Transition Report false  
Common Stock [Member]    
Document and Entity Information [Abstract]    
Trading Symbol UHAL  
Entity Common Stock, Shares Outstanding   19,607,788
Title of 12(b) Security Common Stock, $0.25 par value  
Security Exchange Name NYSE  
Nonvoting Common Stock [Member]    
Document and Entity Information [Abstract]    
Trading Symbol UHAL.B  
Entity Common Stock, Shares Outstanding   176,470,092
Title of 12(b) Security Series N Non-Voting Common Stock, $0.001 par value  
Security Exchange Name NYSE  
v3.23.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
ASSETS:    
Cash and cash equivalents $ 2,377,124 $ 2,060,524
Reinsurance recoverables and trade receivables, net 206,663 189,498
Inventories, net 164,884 151,474
Prepaid expenses 232,039 241,711
Investments, fixed maturities and marketable equities 2,469,512 2,770,394
Investments, other 620,140 575,540
Deferred policy acquisition costs, net 123,596 128,463
Other assets 60,821 51,052
Right of use Assets - Financing 420,496 474,765
Right of use Assets - Operating 59,496 58,917
Related party assets 43,102 48,308
Subtotal assets 6,777,873 6,750,646
Property, plant and equipment, at cost:    
Land 1,555,326 1,537,206
Buildings and improvements 7,364,517 7,088,810
Furniture and equipment 942,036 928,241
Property, plant and equipment (gross) 16,322,927 15,660,293
Less: Accumulated depreciation (4,486,766) (4,310,205)
Total property, plant and equipment 11,836,161 11,350,088
Total assets 18,614,034 18,100,734
Liabilities:    
Accounts payable and accrued expenses 778,605 761,039
Notes, loans and leases payable 6,287,231 6,108,042
Financing lease liability 189,037  
Operating lease liability 58,808 58,373
Policy benefits and losses, claims and loss expenses payable 878,436 880,202
Liabilities from investment contracts 2,384,330 2,398,884
Other policyholders' funds and liabilities 12,218 8,232
Deferred income 64,790 52,282
Deferred income taxes, net 1,371,859 1,329,489
Total liabilities 11,836,277 11,596,543
Commitments and contingencies (notes 4, 8 and 9)
Stockholders' equity:    
Additional paid-in capital 453,643 453,643
Accumulated other comprehensive loss (261,836) (285,623)
Retained earnings 7,252,927 7,003,148
Total stockholders' equity 6,777,757 6,504,191
Total liabilities and stockholders' equity 18,614,034 18,100,734
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 866,916 827,696
Rental Trucks [Member]    
Property, plant and equipment, at cost:    
Property subject to or available for operating lease, gross $ 5,594,132 $ 5,278,340
v3.23.2
Condensed Consolidated Balance Sheets Parenthetical
Jun. 30, 2023
$ / shares
Common Stock [Member]  
Common stock:  
Common stock, par or stated value per share $ 0.25
v3.23.2
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Revenues:    
Self-moving equipment rentals $ 999,206 $ 1,090,775
Self-storage revenues 198,961 173,177
Self moving and self-storage products and service sales 100,872 109,351
Property management fees 9,177 9,139
Life insurance premiums 23,131 25,781
Property and casualty insurance premiums 20,322 19,972
Investment income interest and dividend 64,592 33,573
Other revenue 124,047 136,072
Total revenues 1,540,308 1,597,840
Costs and expenses:    
Operating expenses 763,241 733,167
Commission expenses 106,927 118,493
Cost of sales 70,675 79,671
Benefits and losses 45,344 39,757
Amortization of deferred policy acquisition costs 8,045 7,672
Lease expense 7,583 7,475
Depreciation, net of (gains) losses on disposals 137,814 113,796
Net (gains) losses on disposal of real estate 1,021 2,307
Total costs and expenses 1,140,650 1,102,338
Earnings from operations 399,658 495,502
Other components of net periodic benefit costs (365) (304)
Interest expense (60,598) (49,799)
Pretax earnings 338,695 445,399
Income tax expense (81,857) (107,054)
Earnings available to common stockholders 256,838 338,345
Common Stock [Member]    
Costs and expenses:    
Earnings available to common stockholders $ 0 $ 0
Basic and diluted earnings per common share $ 1.27 $ 2.18
Weighted average common shares outstanding: basic and diluted 19,607,788 19,607,788
Nonvoting Common Stock [Member]    
Costs and expenses:    
Earnings available to common stockholders $ 0 $ 0
Basic and diluted earnings per common share $ 1.31 $ 1.68
Weighted average common shares outstanding: basic and diluted 176,470,092 176,470,092
Nonvoting Common Stock [Member] | Common Stock [Member]    
Costs and expenses:    
Weighted average common shares outstanding: basic and diluted 196,077,880 196,077,880
v3.23.2
Condensed Consolidated Statements of Operations Parenthetical - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Depreciation:    
Net gain on sale of real and personal property $ (55,661) $ (64,348)
v3.23.2
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Comprehensive income (loss) (pretax):    
Pretax earnings (loss) $ 338,695 $ 445,399
Comprehensive income (loss) (tax effect):    
Income tax expense (81,857) (107,054)
Comprehensive income (loss) (net of tax):    
Net earnings 256,838 338,345
Other comprehensive income (loss):    
Foreign currency translation (pretax) 469 197
Foreign currency translation (tax effect) 0 0
Foreign currency translation (net of tax) 469 197
Unrealized gain (loss) on investments (pretax) 25,543 (173,046)
Unrealized gain (loss) on investments (tax effect) (5,199) 36,664
Unrealized gain (loss) on investments (net of tax) 20,344 (136,382)
Change in fair value of cash flow hedges (pretax) 5,093 170
Change in fair value of cash flow hedges (tax effect) (1,251) (42)
Change in fair value of cash flow hedges (net of tax) 3,842 128
Amounts reclassifed into earnings on hedging activities (pretax) (1,150) 566
Amounts reclassified into earnings on hedging activities (tax effect) 282 (139)
Amounts reclassified into earnings on hedging activities (net of tax) (868) 427
Total other comprehensive income (loss) (pretax) 29,955 (172,113)
Total other comprehensive income (loss) (tax effect) (6,168) 36,483
Total other comprehensive income (loss) (net of tax) 23,787 (135,630)
Total comprehensive income (pretax) 368,650 273,286
Total comprehensive income (tax effect) (88,025) (70,571)
Total comprehensive income (net of tax) $ 280,625 $ 202,715
v3.23.2
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]
Nonvoting Common Stock [Member]
Balance, beginning of period at Mar. 31, 2022 $ 5,894,075 $ 10,497 $ 453,819 $ (4,992) $ 6,112,401 $ (525,653) $ (151,997) $ 0
Cosolidated statement of change in equity                
Foreign currency translation 197 0 0 197 0 0 0 0
Unrealized net gain (loss) on investments, net of tax (136,382) 0 0 (136,382) 0 0 0 0
Change in fair value of cash flow hedges, net of tax 128 0 0 128 0 0 0 0
Amounts reclassified into earnings on hedging activities 427 0 0 427 0 0 0 0
Net earnings 338,345 0 0 0 338,345 0 0 0
Common stock dividends (9,804) 0 0 0 (9,804) 0 0 0
Net activity 192,911 0 0 (135,630) 328,541 0 0 0
Balance, end of period at Jun. 30, 2022 6,086,986 10,497 453,819 (140,622) 6,440,942 (525,653) (151,997) 0
Balance, beginning of period at Mar. 31, 2023 6,504,191 10,497 453,643 (285,623) 7,003,148 (525,653) (151,997) 176
Cosolidated statement of change in equity                
Foreign currency translation 469 0 0 469 0 0 0 0
Unrealized net gain (loss) on investments, net of tax 20,344 0 0 20,344 0 0 0 0
Change in fair value of cash flow hedges, net of tax 3,842 0 0 3,842 0 0 0 0
Amounts reclassified into earnings on hedging activities (868) 0 0 (868) 0 0 0 0
Net earnings 256,838 0 0 0 256,838 0 0 0
Series N Non-Voting Common Stock Dividends (7,059) 0 0 0 (7,059) 0 0 0
Net activity 273,566 0 0 23,787 249,779 0 0 0
Balance, end of period at Jun. 30, 2023 $ 6,777,757 $ 10,497 $ 453,643 $ (261,836) $ 7,252,927 $ (525,653) $ (151,997) $ 176
v3.23.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Cash flow from operating activities:    
Net earnings $ 256,838 $ 338,345
Adjustments to reconcile net earnings to cash provided by operations:    
Depreciation 193,475 178,144
Amortization of deferred policy acquisition costs 8,045 7,672
Amortization of premiums and accretion of discounts related to investments, inc 4,394 4,929
Amortization of debt issuance costs 1,456 1,473
Interest credited to policyholders 17,538 15,157
Change in allowance for losses on trade receivables 592 (6,151)
Change in allowance for inventory reserves (327) 4,646
Net gain on sale of real and personal property (55,661) (64,348)
Net losses on disposal of real estate 1,021 2,307
Net (gain) loss on sale of investments (1,914) 268
Net (gain) losses equity investments (2,429) 1,551
Deferred income tax 34,108 63,493
Net change in other operating assets and liabilities:    
Reinsurance recoverables and trade receivables (17,435) 15,894
Inventories (13,068) (10,347)
Prepaid expenses 9,870 4,935
Capitalization of deferred policy acquisition costs (3,177) (7,398)
Other assets (9,957) 1,935
Related party assets 3,132 484
Accounts payable and accrued expenses 33,112 74,676
Policy benefits and losses, claims and loss expenses payable (12,098) 6,043
Other policyholders' funds and liabilities 3,986 1,187
Deferred income 11,999 14,448
Related party liabilities 2,197 2,028
Net cash provided by operating activities 465,697 651,371
Cash flow from investing activities:    
Escrow deposits (361) 4,789
Purchase of:    
Property, plant and equipment (773,577) (646,137)
Short term investments (9,957) (22,017)
Fixed maturity investments (3,251) (36,488)
Equity Securities (242) (1,366)
Real estate (415) 0
Mortgage loans (52,450) (42,561)
Proceeds from sale of:    
Property, plant and equipment 193,455 159,180
Short term investments 11,745 18,073
Fixed maturity investments 336,859 55,808
Preferred stock 236 362
Mortgage loans 8,377 32,345
Net cash used by investing activities (288,668) (478,012)
Cash flow from financing activities:    
Borrowings from credit facilities 445,493 393,264
Principal repayments on credit facilities (232,824) (145,369)
Payment of debt issuance costs (2,688) (1,069)
Capital lease payments (34,168) (34,982)
Common stock dividends paid 0 (9,804)
Investment contract deposits 51,239 85,767
Investment contract withdrawals (83,331) (62,911)
Net cash provided by (used in) financing activities 136,741 224,896
Effects on exchange rate on cash 2,830 (4,121)
Increase (decrease) cash and cash equivalents 316,600 394,134
Cash and cash equivalents at beginning of period 2,060,524 2,704,137
Cash and cash equivalents at end of period $ 2,377,124 $ 3,098,271
v3.23.2
Basis of Presentation
3 Months Ended
Jun. 30, 2023
Disclosure Text Block [Abstract]  
1. Basis of Presentation U-Haul Holding Company, a Nevada corporation (“U-Haul Holding Company”), 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 consolidated financial position or consolidated results of operations. We disclose material events, if any, occurring during the intervening period. Consequently, all references to our insurance subsidiaries’ years 2023 and 2022 correspond to fiscal 2024 and 2023 for U-Haul Holding Company. Accounts denominated in non-U.S. currencies have been translated into U.S. dollars. The consolidated balance sheet as of June 30, 2023 and the related consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for the first quarter of fiscal 2024 and 2023 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 the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2023. Intercompany accounts and transactions have been eliminated. Description of Legal Entities U-Haul Holding Company 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 U-Haul Holding Company and all of its legal subsidiaries. Description of Operating Segments U-Haul Holding Company 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 U-Haul Holding Company, 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. Accounting Policy Updates :   The following accounting policies were updated since the filing of our Annual Report on Form 10-K for the fiscal year ended March 31, 2023 due to the adoption of Accounting Standards Update (“ASU”) 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (ASU 2018-12). Please refer to Note 18,   Accounting Pronouncements   for additional information on the financial statement impacts related to the adoption of this standard.
v3.23.2
Earnings Per Share
3 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
2. Earnings Per Share We calculate earnings per share using the two-class method in accordance with Accounting Standards Codification (“ASC“) Topic 260, Earnings Per Share . The two-class method allocates the undistributed earnings available to common stockholders to the Company’s outstanding common stock, $ 0.25 par value (the “Voting Common Stock”) and the Series N Non-Voting Common Stock, $ 0.001 par value (the “Non-Voting Common Stock”) based on each share’s percentage of total weighted average shares outstanding. The Voting Common Stock and Non-Voting Common Stock are allocated 10 % and 90 %, respectively, of our undistributed earnings available to common stockholders. This represents earnings available to common stockholders less the dividends declared for both the Voting Common Stock and Non-Voting Common Stock. Our undistributed earnings per share is calculated by taking the undistributed earnings available to common stockholders and dividing this number by the weighted average shares outstanding for the respective stock. If there was a dividend declared for that period, the dividend per share is added to the undistributed earnings per share to calculate the basic and diluted earnings per share. The process is used for both Voting Common Stock and Non-Voting Common Stock. The calculation of basic and diluted earnings per share for the quarters ended June 30, 2023 and 2022 for our Voting Common Stock and Non-Voting Common Stock were as follows:     For the Quarters Ended     June 30,     2023 2022     (Unaudited)     (In thousands, except share and per share amounts)           Weighted average shares outstanding of Voting Common Stock   19,607,788   19,607,788 Total weighted average shares outstanding for Voting Common Stock and Non-Voting Common Stock   196,077,880   196,077,880 Percent of weighted average shares outstanding of Voting Common Stock   10%   10%           Net earnings available to common stockholders $ 256,838 $ 338,345 Voting Common Stock dividends declared   –   (9,804) Non-Voting Common Stock dividends declared   (7,059)   – Undistributed earnings available to common stockholders $ 249,779 $ 328,541 Undistributed earnings available to common stockholders allocated to Voting Common Stock $ 24,978 $ 32,854           Undistributed earnings per share of Voting Common Stock $ 1.27 $ 1.68 Dividends declared per share of Voting Common Stock $ – $ 0.50 Basic and diluted earnings per share of Voting Common Stock $ 1.27 $ 2.18                     Weighted average shares outstanding of Non-Voting Common Stock   176,470,092   176,470,092 Total weighted average shares outstanding for Voting Common Stock and Non-Voting Common Stock   196,077,880   196,077,880 Percent of weighted average shares outstanding of Non-Voting Common Stock   90%   90%           Net earnings available to common stockholders $ 256,838 $ 338,345 Voting Common Stock dividends declared   –   (9,804) Non-Voting Common Stock dividends declared   (7,059)   – Undistributed earnings available to common stockholders $ 249,779 $ 328,541 Undistributed earnings available to common stockholders allocated to Non-Voting Common Stock $ 224,801 $ 295,687           Undistributed earnings per share of Non-Voting Common Stock $ 1.27 $ 1.68 Dividends declared per share of Non-Voting Common Stock $ 0.04 $ – Basic and diluted earnings per share of Non-Voting Common Stock $ 1.31 $ 1.68
v3.23.2
Investments
3 Months Ended
Jun. 30, 2023
Investments Debt Equity Securities [Abstract]  
3. Investments We deposit bonds with insurance regulatory authorities to meet statutory requirements. The adjusted cost of bonds on deposit with insurance regulatory authorities was $ 21.4 million and $ 23.4 million as of March 31, 2023 and December 31, 2022, respectively. Available-for-Sale Investments Available-for-sale investments as of June 30, 2023 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   Fair Market Value     (Unaudited)     (In thousands) U.S. treasury securities and government obligations $ 128,050 $   391 $   (7,620) $   (1,973) $   – $   118,848 U.S. government agency mortgage-backed securities   33,769   55   (6,810)   (62)   –   26,952 Obligations of states and political subdivisions   159,833   1,060   (6,024)   (2,788)   –   152,081 Corporate securities   1,987,107   2,253   (147,453)   (39,283)   (1,646)   1,800,978 Mortgage-backed securities   359,413   83   (47,653)   (3,476)   –   308,367   $ 2,668,172 $   3,842 $   (215,560) $   (47,582) $   (1,646) $   2,407,226   Available-for-sale investments as of March 31, 2023 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   Fair Market Value           (In thousands) U.S. treasury securities and government obligations $ 353,189 $   3,061 $   (7,639) $   (3,935) $   – $   344,676 U.S. government agency mortgage-backed securities   34,126   40   (6,707)   (228)   –   27,231 Obligations of states and political subdivisions   161,960   649   (4,014)   (8,090)   –   150,505 Corporate securities   2,086,432   1,491   (60,224)   (156,365)   (2,101)   1,869,233 Mortgage-backed securities   370,880   78   (40,359)   (13,207)   –   317,392   $ 3,006,587 $   5,319 $   (118,943) $   (181,825) $   (2,101) $   2,709,037 We sold available-for-sale securities with a fair value of $ 113.0 million and $54.1 million during the first quarter of fiscal 2024 and fiscal 2023, respectively. The gross realized gains on these sales totaled $0.9 million and $0.3 million during the first quarter of fiscal 2024 and fiscal 2023, respectively.   The gross realized losses on these sales totaled $0.5 million and $0.1 million during the first quarter of fiscal 2024 and fiscal 2023, respectively. In the first quarter of fiscal 2024 we received $ 225.0 million from the Moving and Storage Treasuries that matured. 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 was a ($ 0.5 ) million and a $17 thousand net impairment charge recorded in the first quarter ended June 30, 2023 and 2023, respectively. 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. The adjusted cost and estimated market value of available-for-sale investments by contractual maturity were as follows:     June 30, 2023   March 31, 2023     Cost Amortized   Fair Value   Cost Amortized   Fair Value     (Unaudited)         (In thousands) Due in one year or less $ 134,115 $ 130,997 $ 354,875 $ 354,184 Due after one year through five years   734,777   698,857   754,175   717,552 Due after five years through ten years   699,066   637,939   736,089   665,708 Due after ten years   740,801   631,066   790,568   654,201     2,308,759   2,098,859   2,635,707   2,391,645                   Mortgage-backed securities   359,413   308,367   370,880   317,392   $ 2,668,172 $ 2,407,226 $ 3,006,587 $ 2,709,037   Equity investments of common stock and non-redeemable preferred stock were as follows:     June 30, 2023   March 31, 2023     Cost Amortized   Fair Value   Cost Amortized   Fair Value     (Unaudited)             (In thousands)                   Common stocks $ 29,613 $ 41,730 $ 29,577 $ 39,375 Non-redeemable preferred stocks   25,144   20,556   26,054   21,982   $ 54,757 $ 62,286 $ 55,631 $ 61,357   Investments, other The carrying value of the other investments was as follows:       June 30,   March 31,     2023   2023     (Unaudited)         (In thousands)           Mortgage loans, net $ 510,307 $ 466,531 Short-term investments   13,490   15,921 Real estate   72,257   72,178 Policy loans   10,852   10,921 Other equity investments   13,234   9,989   $ 620,140 $ 575,540
v3.23.2
Borrowings
3 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
4. Borrowings Long Term Debt Long term debt was as follows:   Fiscal Year 2024             Weighted Avg     June 30,   March 31,   Interest Rates     Maturities   Interest Rates (b)     2023   2023                         (Unaudited)                             (In thousands) Real estate loans (amortizing term) (a) 4.30 % - 6.64 %   2027 - 2037   5.78 %   $ 286,677 $   289,647 Senior mortgages 2.70 % - 5.50 %   2024 - 2042   4.14 %     2,457,739   2,371,231 Real estate loans (revolving credit) - % - - %   - - 2027   – %     –   – Fleet loans (amortizing term) 1.61 % - 5.68 %   2023 - 2029   3.73 %     100,225   111,856 Fleet loans (revolving credit) 2.36 % - 6.50 %   2026 - 2028   5.72 %     590,000   615,000 Finance leases (rental equipment) 2.37 % - 5.01 %   2023 - 2026   3.92 %     189,037   223,205 Finance liabilities (rental equipment) 1.60 % - 6.13 %   2024 - 2031   4.12 %     1,425,854   1,255,763 Private placements 2.43 % - 2.88 %   2029 - 2035   2.65 %     1,200,000   1,200,000 Other obligations 1.50 % - 8.00 %   2023 - 2049   6.06 %     74,250   76,648 Notes, loans and finance leases payable                           6,323,782   6,143,350 Less: Debt issuance costs                             (36,551)   (35,308) Total notes, loans and finance leases payable, net                 $ 6,287,231 $   6,108,042       (a) Certain loans have interest rate swaps fixing the rate for the relevant loans between 2.72% and 2.86% based on current margin. The weighted average interest rate calculation for these loans was 4.08% using the swap adjusted interest rate.     (b) Weighted average rates as of June 30, 2023                                                                       Real Estate Backed Loans Real Estate Loans Certain subsidiaries of Real Estate and U-Haul Company of Florida are borrowers under real estate loans. These loans require monthly or quarterly principal and interest payments, with the unpaid loan balance and accrued and unpaid interest due at maturity. These loans are secured by various properties owned by the borrowers. The interest rates, per the provisions of $ 204.2 million of these loans, are the applicable Secured Overnight Funding Rate (“SOFR”) plus the applicable margins and a credit spread adjustment of 0.10 %. As of June 30, 2023, the applicable SOFR was between 5.15 % and 5.16 % and applicable margin was between 0.65 % and 1.38 %, the sum of which, including the credit spread, was between 5.90 % and 6.64 %. The remaining $ 82.5 million of these loans was fixed with an interest rate of 4.30 %. The default provisions of these real estate loans include non-payment of principal or interest and other standard reporting and change-in-control covenants. We are in compliance with the covenants as of June 30, 2023. 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 %. 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. We are in compliance with the covenants as of June 30, 2023. There are limited restrictions regarding our use of the funds. Real Estate Loans (Revolving Credit) U-Haul Holding Company is a borrower under a multi-bank syndicated real estate loan. As of June 30, 2023, the maximum credit commitment is $465.0 million. As of June 30, 2023, the full capacity was available to borrow. This loan agreement provides for revolving loans, subject to the terms of the loan agreement. If there was a loan outstanding as of June 30, 2023, the applicable SOFR was 5.10% and applicable margin would be between 1.40% and 1.55% the sum of which would be 6.50% to 6.65% This loan requires monthly interest payments with the unpaid loan balance and accrued and unpaid interest due at maturity. The default provisions of the loan include non-payment of principal or interest and other   standard reporting and change-in-control covenants. We are in compliance with the covenants as of June 30, 2023. 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 are fixed rates.   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%. U-Haul Holding Company, 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. We are in compliance with the covenants as of June 30, 2023. The net book value of the corresponding rental equipment was $226.1million and $ 213.1 million as of June 30, 2023 and March 31, 2023, respectively. Rental Truck Revolvers Various subsidiaries of U-Haul entered into three revolving fleet loans with an aggregate borrowing capacity of $ 615.0 million. The interest rates are SOFR plus the applicable margin and a credit spread adjustment of 0.10 %. As of June 30, 2023, SOFR was between 5.03 % and 5.16 % and the margin was between 1.15 % and 1.25 %, the sum of which, including the credit spread, was between 6.28 % and 6.50 %. Of the $ 590.0 million outstanding, $ 100.0 million was 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. The default provisions of the loan include non-payment of principal or interest and other standard reporting and change-in-control covenants. We are in compliance with the covenants as of June 30, 2023. These fleet loans are collateralized by the rental equipment purchased. The net book value of the corresponding rental equipment was $ 735.1 million and $ 822.0 million as of June 30, 2023 and March 31, 2023, respectively. Finance Leases The Finance Lease balance represents our sale-leaseback transactions of rental equipment. The agreements are generally seven (7) year terms .   All of our finance leases are collateralized by our rental fleet. The net book value of the corresponding rental equipment was $ 420.5 million and $ 474.8 million as of June 30, 2023 and March 31, 2023, respectively. There were no new financing leases entered into during the first quarter of fiscal 2024. The default provisions of the loan include non-payment of principal or interest and other standard reporting and change-in-control covenants. We are in compliance with the covenants as of June 30, 2023. Finance Liabilities Finance liabilities represent our rental equipment financing transactions, and we assess if these 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, these 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 . These finance liabilities are collateralized by the related assets of our rental fleet.   The net book value of the corresponding rental equipment was $ 1,628.6 million and $ 1,499.1 million as of June 30, 2023 and March 31, 2023, respectively. The default provisions of these loans include non-payment of principal or interest and other standard reporting and change-in-control covenants. We are in compliance with the covenants as of June 30, 2023. Private Placements In September 2021, U-Haul Holding Company 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. The default provisions of the loan include non-payment of principal or interest and other standard reporting and change-in-control covenants. We are in compliance with the covenants as of June 30, 2023. In December 2021, U-Haul Holding Company 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 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. The default provisions of the loan include non-payment of principal or interest and other standard reporting and change-in-control covenants. We are in compliance with the covenants as of June 30, 2023. Other Obligations In February 2011, U-Haul Holding Company and U.S. Bank Trust Company, NA, as successor in interest to U.S. Bank National Association (the “Trustee”), entered into the U-Haul Investors Club ® Indenture.   U-Haul Holding Company 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, certain 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, 2023, the aggregate outstanding principal balance of the U-Notes ® issued was $ 76.0 million, of which $ 1.7 million is held by our insurance subsidiaries and eliminated in consolidation. Annual Maturities of Notes, Loans and Finance Leases Payable The annual maturities of our notes, loans and finance leases payable, before debt issuance costs as of June 30, 2023 for the next five years and thereafter are as follows:     Years Ending June 30,         2024   2025   2026   2027   2028   Thereafter   Total     (Unaudited)     (In thousands) Notes, loans and finance leases payable $ 635,909 $ 474,221 $ 762,745 $ 766,958 $ 833,278 $ 2,850,671 $ 6,323,782 Interest on Borrowings Interest Expense Components of interest expense include the following:     Quarter Ended June 30,     2023   2022     (Unaudited)     (In thousands) Interest expense $ 64,400 $ 50,405 Capitalized interest   (4,063)   (2,618) Amortization of transaction costs   1,411   1,446 Interest expense resulting from cash flow hedges   (1,150)   566 Total interest expense $ 60,598 $ 49,799 Interest paid in cash amounted to $ 55.4 million and $ 41.7 million for the first quarter of fiscal 2023 and 2022, respectively.   Interest paid (received) in cash on derivative contracts was ($1.0) million and $0.6 million for the first quarter of fiscal 2024 and 2023, respectively. Interest Rates Interest rates and Company borrowings related to our revolving credit facilities were as follows:     Revolving Credit Activity       Quarter Ended June 30,       2023   2022       (Unaudited)       (In thousands, except interest rates)   Weighted average interest rate during the quarter   6.26 % 1.99 % Interest rate at the end of the quarter   6.41 % 2.29 % Maximum amount outstanding during the quarter $ 715,000 $ 1,095,000   Average amount outstanding during the quarter $ 660,330 $ 1,095,000   Facility fees $ 265 $ 58  
v3.23.2
Derivatives
3 Months Ended
Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
5. Derivatives We manage exposure to changes in market interest rates. Our use of derivative instruments is limited to highly effective interest rate swaps to hedge the risk of changes in cash flows (future interest payments) attributable to changes in SOFR swap rates with the designated benchmark interest rate being hedged on certain of our SOFR indexed variable rate debt. The interest rate swaps effectively fix our interest payments on certain SOFR indexed variable rate debt through July 2032. 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 consolidated balance sheet were as follows:     June 30, 2023   March 31, 2023     (Unaudited)         (In thousands) Interest rate swaps designated as cash flow hedges:         Assets $ 9,254 $ 5,311 Liabilities   –   – Notional amount   204,227   206,347       The Effect of Interest Rate Contracts on the Statements of Operations for the Quarters Ended         June 30, 2023   June 30, 2022     (Unaudited)     (In thousands) Gain recognized in AOCI on interest rate contracts $ (3,943) $ (736) (Gain) loss reclassified from AOCI into income $ ( 1,150 ) $ 566 (Gains) or losses recognized in income on interest rate derivatives are recorded as interest expense in the consolidated statements of operations. During the first quarter of fiscal 2024 and 2023, we recognized an increase in the fair value of our cash flow hedges of $ 3.8 million and $ 0.1 million, respectively, net of taxes. During the first quarter of fiscal 2024 and 2023, we reclassified ($ 0.9 ) million and $ 0.4 million, respectively, from accumulated other comprehensive income (loss) (“AOCI”) to interest expense, net of tax. As of June 30, 2023, we expect to reclassify $ 4.8 million of net losses on interest rate contracts from AOCI to earnings as interest expense over the next twelve months. We use derivatives to economically 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. As of March 31, 2023 and December 31, 2022, these derivative hedges had a fair value of $ 7.5 million and $ 4.3 million, with notional amounts of $ 362.4 million and $ 465.7   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. Net (gains) losses recognized in net investment and interest income for the quarters ended March 31, 2023 and 2022 were ($ 1.5 ) million and $ 0.6 million, respectively.     Derivatives Fair Values as of         June 30, 2023   March 31, 2023     (Unaudited)         (In thousands) Equity market contracts as economic hedging instruments         Assets $ 7,539 $ 4,295 Liabilities $ – $ – Notional amount $ 362,436 $ 465,701   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 generally accepted accounting principles (“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.
v3.23.2
Accumulated Other Comprehensive Income (Loss)
3 Months Ended
Jun. 30, 2023
Disclosure Text Block [Abstract]  
6. Comprehensive Income (Loss) A summary of AOCI components, net of tax, were as follows:     Foreign Currency Translation   Unrealized Net Gains (Losses) on Investments   Fair Market Value of Cash Flow Hedges   Postretirement Benefit Obligation Net Loss   Accumulated Other Comprehensive Loss     (Unaudited)     (In thousands) Balance as of March 31, 2023 $ (56,539) $   (232,740) $   4,007 $   (351) $   (285,623) Foreign currency translation   469   –   –   –   469 Unrealized net gains on investments   –   20,344   –   –   20,344 Change in fair value of cash flow hedges   –   –   3,842   –   3,842 Amounts reclassified into earnings on hedging activities   –   –   (868)   –   (868) Other comprehensive income (loss)   469   20,344   2,974   –   23,787 Balance as of June 30, 2023 $ ( 56,070 ) $   ( 212,396 ) $   6,981 $   ( 351 ) $   (261,836)
v3.23.2
Stockholders' Equity
3 Months Ended
Jun. 30, 2023
Stockholders' Equity [Abstract]  
7. Stockholders' Equity The following table lists the dividends that have been declared and issued for the first quarters of fiscal years 2024 and 2023. Non-Voting Common Stock Dividends Declared Date   Per Share Amount   Record Date   Dividend Date               June 7, 2023 $ 0.04   June 20, 2023   June 30, 2023   Common Stock Dividends Declared Date   Per Share Amount   Record Date   Dividend Date               April 6, 2022 $ 0.50   April 18, 2022   April 29, 2022 As of June 30, 2023, no awards had been issued under the 2016 AMERCO Stock Option Plan.
v3.23.2
Leases
3 Months Ended
Jun. 30, 2023
Leases [Abstract]  
8. Leases The following tables show the components of our right-of-use (“ROU“) assets, net:     As of June 30, 2023     Finance   Operating   Total     (Unaudited)     (In thousands) Buildings and improvements $ – $ 133,248 $ 133,248 Furniture and equipment   7,109   –   7,109 Rental trailers and other rental equipment   128,865   –   128,865 Rental trucks   879,054   –   879,054 Right-of-use assets, gross   1,015,028   133,248   1,148,276 Less: Accumulated depreciation   (594,532)   (73,770)   (668,302) Right-of-use assets, net $ 420,496 $ 59,478 $ 479,974       As of March 31, 2023     Finance   Operating   Total     (In thousands) Buildings and improvements $ – $ 128,221 $ 128,221 Furniture and equipment   9,687   –   9,687 Rental trailers and other rental equipment   152,294   –   152,294 Rental trucks   949,838   –   949,838 Right-of-use assets, gross   1,111,819   128,221   1,240,040 Less: Accumulated depreciation   (637,054)   (69,304)   (706,358) Right-of-use assets, net $ 474,765 $ 58,917 $ 533,682   As of June 30, 2023 and March 31, 2023, we had finance lease liabilities for the ROU assets, net of $ 189.0 million and $ 223.2 million, respectively, and operating lease liabilities of $ 58.8 million and $ 58.4 million, respectively.     Finance leases       June 30,   March 31,       2023   2023       (Unaudited)       Weighted average remaining lease term (years)   2   2   Weighted average discount rate   3.9 % 3.8 %       Operating leases       June 30,   March 31,       2023   2023       (Unaudited)       Weighted average remaining lease term (years)   20.3   19.2   Weighted average discount rate   4.7 % 4.7 %   For the quarters ended June 30, 2023 and 2022, cash paid for leases included in our operating cash flow activities were $ 8.9 million and $ 7.9 million, respectively, and our financing cash flow activities were $ 34.2 million and $ 35.0 million, respectively.   Non-cash activities of ROU assets in exchange for lease liablities were $5.0 million and $2.4 million for the first quarters of fiscal 2024 and 2023, respectively. The components of lease costs, including leases of less than 12 months, were as follows:     Three Months Ended     June 30, 2023   June 30, 2022     (Unaudited)     (In thousands)           Operating lease costs $ 8,102 $ 7,920           Finance lease cost:         Amortization of right-of-use assets $ 16,754 $ 22,396 Interest on lease liabilities   2,146   3,218 Total finance lease cost $ 18,900 $ 25,614   The short-term lease costs for the first quarters of fiscal 2024 and 2023 were not material. Maturities of lease liabilities were as follows:     Finance leases   Operating leases     (Unaudited) Years ending March 31,   (In thousands)           2024 (9 months) $ 75,174 $ 18,686 2025   77,194   12,244 2026   46,457   5,534 2027   –   4,087 2028   –   3,483 Thereafter   –   62,497 Total lease payments   198,825   106,531 Less: imputed interest   (9,788)   (47,723) Present value of lease liabilities $ 189,037 $ 58,808
v3.23.2
Contingencies
3 Months Ended
Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
9. Contingencies Cybersecurity Incident On September 9, 2022, we announced that the Company was made aware of a data security incident involving U-Haul‘s information technology network. U-Haul detected a compromise of two unique passwords used to access U-Haul customers information. U-Haul took immediate steps to contain the incident and promptly enhanced its security measures to prevent any further unauthorized access. U-Haul retained cybersecurity experts and incident response counsel to investigate the incident and implement additional security safeguards. The investigation determined that between November 5, 2021 and April 8, 2022, the threat actor accessed customer contracts containing customers’ names, dates of birth, and driver’s license or state identification numbers. None of U-Haul’s financial, payment processing or email systems were involved. U-Haul has notified impacted customers and relevant governmental authorities. Several class action lawsuits related to the incident have been filed against U-Haul. The lawsuits have been consolidated into one action in the U.S. District Court for the District of Arizona and will be vigorously defended by the Company; however the outcome of such lawsuits cannot be predicted or guaranteed with any certainty. Environmental Compliance with environmental requirements of federal, state, provincial and local governments may 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 the Company’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.
v3.23.2
Related Party Transactions
3 Months Ended
Jun. 30, 2023
Related Party Transactions [Abstract]  
10. Related Party Transactions As set forth in the Company’s Audit Committee Charter and consistent with the NYSE Listed Company Manual, 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 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. U-Haul Holding Company 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. 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, 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,     2023   2022     (Unaudited)     (In thousands) U-Haul management fee revenue from Blackwater $ 7,696 $ 7,729 U-Haul management fee revenue from Mercury   1,481   1,410   $ 9,177 $ 9,139   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 $ 8.2 million from the above-mentioned entities during the first quarter of both fiscal 2024 and 2023. 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; Mercury has notified W.P. Carey, the lessor, of its intent to purchase the properties. Related Party Costs and Expenses     Quarter Ended June 30,     2023   2022     (Unaudited)     (In thousands) U-Haul lease expenses to Blackwater $ 604 $ 604 U-Haul printing expenses to Blackwater   349   – U-Haul commission expenses to Blackwater   22,703   24,882   $ 23,656 $ 25,486 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. On May 15, 2023, SAC Holdings began providing ancillary and specialty printing services to us. The financial and other terms of the transactions are substantially identical to the terms of additional specialty printing vendors. As of June 30, 2023, 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 $7.7 million and $7.7 million, expenses of $ 0.9 million and $ 0.6 million and cash flows of $ 6.6 million and $ 6.9 million, respectively, during the first quarter of fiscal 2024 and 2023. Revenues were $ 103.5 million and $ 117.9 million and commission expenses were $ 22.7 million and $ 24.9 million, respectively, related to the Dealer Agreements, during the first quarter of fiscal 2024 and 2023. 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. Related Party Assets     June 30,   March 31,     2023   2023     (Unaudited)         (In thousands) U-Haul receivable from Blackwater $ 41,146 $ 42,141 U-Haul receivable from Mercury   6,446   8,402 Other (a)   (4,490)   (2,235)   $ 43,102 $ 48,308 (a)       Timing differences for intercompany balances with insurance subsidiaries resulting from the three-month difference in reporting periods.
v3.23.2
Consolidating Financial Information by Industry Segment
3 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
11. Consolidating Financial Information by Industry Segment 11. Consolidating Financial Information by Industry Segment   U-Haul Holding Company’s three reportable segments are:   Moving and Storage, comprised of U-Haul Holding Company, 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 consolidating statements. The information includes elimination entries necessary to consolidate U-Haul Holding Company, the parent, with its subsidiaries. Investments in subsidiaries are accounted for by the parent using the equity method of accounting.
v3.23.2
Industry Segment and Geographic Area Data
3 Months Ended
Jun. 30, 2023
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, 2023             Total revenues $ 1,461,284 $ 79,024 $ 1,540,308 Depreciation and amortization, net of gains on disposal   148,313   (1,433)   146,880 Interest expense   59,946   652   60,598 Pretax earnings   327,072   11,623   338,695 Income tax expense   78,595   3,262   81,857 Identifiable assets   17,892,739   721,295   18,614,034               Quarter Ended June 30, 2022             Total revenues $ 1,510,386 $ 87,454 $ 1,597,840 Depreciation and amortization, net of gains on disposal   120,986   2,789   123,775 Interest expense   48,948   851   49,799 Pretax earnings   431,881   13,518   445,399 Income tax expense   103,613   3,441   107,054 Identifiable assets   17,202,853   590,958   17,793,811
v3.23.2
Employee Benefit Plans
3 Months Ended
Jun. 30, 2023
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,     2023   2022     (Unaudited)     (In thousands)           Service cost for benefits earned during the period $ 297 $   332 Other components of net periodic benefit costs:         Interest cost on accumulated postretirement benefit   367   287 Other components   (2)   17 Total other components of net periodic benefit costs   365   304 Net periodic postretirement benefit cost$ 662 $  636
v3.23.2
Fair Value Measurements
3 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
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 are based on quoted market prices. Fair values of investments available-for-sale are based on quoted market prices, dealer quotes or discounted cash flows. Fair values on interest rate swap contracts are based on using pricing valuation models which include broker quotes. Fair values of long-term investment and mortgage loans and notes on real estate 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 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, 2023   Value   Level 1   Level 2   Level 3   Fair Value     (Unaudited) Assets   (In thousands) Reinsurance recoverables and trade receivables, net $ 206,663 $ – $ – $ 206,663 $ 206,663 Mortgage loans, net   510,307   –   –   494,664   494,664 Other investments   109,833   –   –   109,833   109,833 Total $ 826,803 $ – $ – $ 811,160 $ 811,160                                             Liabilities                     Notes, loans and finance leases payable   6,323,782   –   5,743,138   –   5,743,138 Total $ 6,323,782 $ – $ 5,743,138 $ – $ 5,743,138       Fair Value Hierarchy     Carrying               Total Estimated As of March 31, 2023   Value   Level 1   Level 2   Level 3   Fair Value     (In thousands) Assets                     Reinsurance recoverables and trade receivables, net $ 189,498 $ – $ – $ 189,498 $ 189,498 Mortgage loans, net   466,531   –   –   444,957   444,957 Other investments   109,009   –   –   109,009   109,009 Total $ 765,038 $ – $ – $ 743,464 $ 743,464                                             Liabilities                     Notes, loans and finance leases payable   6,143,350   –   5,710,735   –   5,710,735 Total $ 6,143,350 $ – $ 5,710,735 $ – $ 5,710,735   The following tables represent the financial assets and liabilities on the consolidated balance sheets as of June 30, 2023 and March 31, 2023 that are measured at fair value on a recurring basis and the level within the fair value hierarchy.   As of June 30, 2023   Total   Level 1   Level 2   Level 3     (Unaudited) Assets   (In thousands) Short-term investments $ 2,055,145 $ 2,053,510 $ 1,635 $ – Fixed maturities - available for sale   2,407,226   24,549   2,382,618   59 Preferred stock   20,556   20,556   –   – Common stock   41,730   41,730   –   – Derivatives   16,793   7,539   9,254   – Total $ 4,541,450 $ 2,147,884 $ 2,393,507 $ 59   As of March 31, 2023   Total   Level 1   Level 2   Level 3     (In thousands) Assets                 Short-term investments $ 1,809,441 $ 1,808,797 $ 644 $ – Fixed maturities - available for sale   2,709,037   251,832   2,457,146   59 Preferred stock   21,982   21,982   –   – Common stock   39,375   39,375   –   – Derivatives   9,606   4,295   5,311   – Total $ 4,589,441 $ 2,126,281 $ 2,463,101 $ 59   The fair value measurements for our assets using significant unobservable inputs (Level 3) were $0.1 million for both June 30, 2023 and March 31, 2023.
v3.23.2
Revenue Recognition
3 Months Ended
Jun. 30, 2023
Revenue From Contract With Customer [Abstract]  
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, 2023 and March 31, 2023. 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. 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. 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. Additionally, in certain contracts the Company has the ability to earn an incentive fee based on operational results. 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 2024 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. 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 with Topic 842 ASC Topic 842, Leases (Topic 842), The Company’s self-moving equipment 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. Please see Note 8, Leases, of the Notes to the Condensed Consolidated Financial Statements. Self-moving equipment 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,     2024   2025   2026   2027   2028   Thereafter     (Unaudited)     (In thousands)                           Self-moving equipment rentals $ 6,947 $ – $ – $ – $ – $ – Property lease revenues   21,052   14,626   11,834   8,920   6,235   39,797 Total $ 27,999 $ 14,626 $ 11,834 $ 8,920 $ 6,235 $ 39,797   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. Property and casualty insurance premiums are recognized as revenue over the policy periods. Interest and investment income are recognized as earned. 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. In the following table, revenue is disaggregated by timing of revenue recognition:       Quarter Ended June 30,     2023   2022     (Unaudited)     (In thousands)           Revenues recognized over time: $   91,315 $   103,194 Revenues recognized at a point in time:   117,593   126,355 Total revenues recognized under ASC 606   208,908   229,549           Revenues recognized under ASC 842   1,222,316   1,288,031 Revenues recognized under ASC 944   44,492   46,687 Revenues recognized under ASC 320   64,592   33,573 Total revenues $   1,540,308 $   1,597,840   In the above table, the revenues recognized over time include property management fees, the shipping fees associated with U-Box container 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 revenues, 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.
v3.23.2
Allowance for Credit Losses
3 Months Ended
Jun. 30, 2023
Allowance For Credit Loss [Abstract]  
Allowance For Credit Losses [Text Block] Trade Receivables Moving and Storage has two ( 2 ) primary components of trade receivables, receivables from corporate customers and credit card receivables from customer sales and rental of equipment.   For credit card receivables, the Company uses a trailing 13 months average historical chargeback percentage of total credit card receivables to estimate a credit loss reserve. 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 4 % as of June 30, 2023 and March 31, 2023. 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, 2023 and March 31, 2023 was $ 4.9 million and $ 3.8 million, respectively. Accrued Interest Receivable Accrued interest receivables on available for sale securities totaled $ 29.6 million as of March 31, 2023 and December 31, 2022 and are excluded from the estimate of credit losses. 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 write off accrued interest receivables by reversing interest income. 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.   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 credit losses are expected to occur, an allowance for expected credit losses based on the fair value of the collateral is recorded. Reinsurance recoverables Reinsurance recoverables on paid and unpaid benefits was less than 1 % of the total assets as of March 31, 2023 which is immaterial based on historical loss experience and high credit rating of the reinsurers. Premium receivables Premium receivables were $4.1 million as of March 31, 2023 and December 31, 2022, respectively in which the credit loss allowance is immaterial based on our ability to cancel the policy if the policyholder does not 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, 2022 $ 8,649 $ 60 $ 501 $ 9,210 Provision for (reversal of) credit losses   (4,860)   2,041   16   (2,803) Write-offs against allowance   –   –   –   – Recoveries   –   –   –   – Balance as of March 31, 2023 $ 3,789 $ 2,101 $ 517 $ 6,407 Provision for (reversal of) credit losses   591   (455)   301   437 Write-offs against allowance   –   –   –   – Recoveries   –   –   –   – Balance as of June 30, 2023 $ 4,380 $ 1,646 $ 818 $ 6,844