U-Haul Holding Co /NV/ - Quarter Report: 2018 September (Form 10-Q)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

[x]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended September 30, 2018

[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from __________________ to __________________


Commission File Number	Registrant, State of Incorporation, Address and Telephone Number	I.R.S. Employer Identification No.



1-11255	AMERCO	88-0106815
	(A Nevada Corporation)
	5555 Kietzke Lane, Ste. 100
	Reno, Nevada 89511
	Telephone (775) 688-6300

	N/A
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [x] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [x] Accelerated filer [ ]

Non-accelerated filer [ ] Smaller reporting company [ ]

Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [x]

19,607,788 shares of AMERCO Common Stock, $0.25 par value, were outstanding at November 2, 2018.

TABLE OF CONTENTS

		Page
	PART I FINANCIAL INFORMATION
Item 1.	Financial Statements
	a) Condensed Consolidated Balance Sheets as of September 30, 2018 (unaudited) and March 31, 2018	1
	b) Condensed Consolidated Statements of Operations for the Quarters ended September 30, 2018 and 2017 (unaudited)	2
	c) Condensed Consolidated Statements of Operations for the Six Months ended September 30, 2018 and 2017 (unaudited)	3
	d) Condensed Consolidated Statements of Comprehensive Income (Loss) for the Quarters and Six Months ended September 30, 2018 and 2017 (unaudited)	4
	e) Condensed Consolidated Statements of Cash Flows for the Six Months ended September 30, 2018 and 2017 (unaudited)	5
	f) Notes to Condensed Consolidated Financial Statements (unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	38
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	59
Item 4.	Controls and Procedures	61

	PART II OTHER INFORMATION
Item 1.	Legal Proceedings	62
Item 1A.	Risk Factors	62
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	62
Item 3.	Defaults Upon Senior Securities	62
Item 4.	Mine Safety Disclosures	62
Item 5.	Other Information	62
Item 6.	Exhibits	63

Part i Financial information

ITEM 1. Financial Statements

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED balance sheets

		September 30,		March 31,
		2018		2018
		(Unaudited)
		(In thousands, except share data)
ASSETS
Cash and cash equivalents	$	652,440	$	759,388
Reinsurance recoverables and trade receivables, net		207,665		193,538
Inventories and parts, net		93,071		89,877
Prepaid expenses		183,350		166,129
Investments, fixed maturities and marketable equities		2,015,402		1,919,860
Investments, other		407,774		399,064
Deferred policy acquisition costs, net		138,938		124,767
Other assets		180,475		244,782
Related party assets		30,257		33,276
		3,909,372		3,930,681
Property, plant and equipment, at cost:
Land		899,095		827,649
Buildings and improvements		3,581,419		3,140,713
Furniture and equipment		656,389		632,803
Rental trailers and other rental equipment		562,167		545,968
Rental trucks		4,597,016		4,390,750
		10,296,086		9,537,883
Less: Accumulated depreciation		(2,881,613)		(2,721,142)
Total property, plant and equipment		7,414,473		6,816,741
Total assets	$	11,323,845	$	10,747,422
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued expenses	$	535,185	$	511,115
Notes, loans and leases payable, net		3,686,572		3,513,076
Policy benefits and losses, claims and loss expenses payable		1,198,053		1,248,033
Liabilities from investment contracts		1,490,172		1,364,066
Other policyholders' funds and liabilities		13,342		10,040
Deferred income		34,136		34,276
Deferred income taxes, net		733,218		658,108
Total liabilities		7,690,678		7,338,714

Commitments and contingencies (notes 4, 8 and 9)
Stockholders' equity:
Series preferred stock, with or without par value, 50,000,000 shares authorized:
Series A preferred stock, with no par value, 6,100,000 shares authorized;
6,100,000 shares issued and none outstanding as of September 30 and March 31, 2018		–		–
Series B preferred stock, with no par value, 100,000 shares authorized; none
issued and outstanding as of September 30 and March 31, 2018		–		–
Serial common stock, with or without par value, 250,000,000 shares authorized:
Serial common stock of $0.25 par value, 10,000,000 shares authorized;
none issued and outstanding as of September 30 and March 31, 2018		–		–
Common stock, with $0.25 par value, 250,000,000 shares authorized:
Common stock of $0.25 par value, 250,000,000 shares authorized; 41,985,700
issued and 19,607,788 outstanding as of September 30 and March 31, 2018		10,497		10,497
Additional paid-in capital		453,006		452,746
Accumulated other comprehensive loss		(62,238)		(4,623)
Retained earnings		3,917,087		3,635,561
Cost of common shares in treasury, net (22,377,912 shares as of September 30 and March 31, 2018)		(525,653)		(525,653)
Cost of preferred shares in treasury, net (6,100,000 shares as of September 30 and March 31, 2018)		(151,997)		(151,997)
Unearned employee stock ownership plan shares		(7,535)		(7,823)
Total stockholders' equity		3,633,167		3,408,708
Total liabilities and stockholders' equity	$	11,323,845	$	10,747,422

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED Statements of operations

		Quarter Ended September 30,
		2018		2017
		(Unaudited)
		(In thousands, except share and per share amounts)
Revenues:
Self-moving equipment rentals	$	781,713	$	740,558
Self-storage revenues		91,493		80,472
Self-moving and self-storage products and service sales		72,913		73,268
Property management fees		7,192		6,831
Life insurance premiums		35,920		38,862
Property and casualty insurance premiums		16,283		15,026
Net investment and interest income		28,227		26,469
Other revenue		70,766		61,200
Total revenues		1,104,507		1,042,686

Costs and expenses:
Operating expenses		529,350		492,250
Commission expenses		85,334		83,351
Cost of sales		46,402		42,866
Benefits and losses		45,773		47,109
Amortization of deferred policy acquisition costs		5,899		5,944
Lease expense		8,170		8,575
Depreciation, net of gains on disposal of ($12,036) and ($4,938), respectively		132,625		133,144
Net (gains) losses on disposal of real estate		10		(166)
Total costs and expenses		853,563		813,073

Earnings from operations		250,944		229,613
Other components of net periodic benefit costs		(254)		(232)
Interest expense		(35,030)		(32,023)
Pretax earnings		215,660		197,358
Income tax expense		(52,118)		(72,719)
Earnings available to common stockholders	$	163,542	$	124,639
Basic and diluted earnings per common share	$	8.35	$	6.36
Weighted average common shares outstanding: Basic and diluted		19,591,312		19,588,571

Related party revenues for the second quarter of fiscal 2019 and 2018, net of eliminations, were $7.2 million and $8.0 million, respectively.

Related party costs and expenses for the second quarter of fiscal 2019 and 2018, net of eliminations, were $19.0 million and $18.2 million, respectively.

Please see Note 10, Related Party Transactions, of the Notes to Condensed Consolidated Financial Statements for more information on the related party revenues and costs and expenses.

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED Statements of operations

		Six Months Ended September 30,
		2018		2017
		(Unaudited)
		(In thousands, except share and per share amounts)
Revenues:
Self-moving equipment rentals	$	1,498,315	$	1,410,416
Self-storage revenues		177,705		157,190
Self-moving and self-storage products and service sales		152,154		152,179
Property management fees		14,608		13,593
Life insurance premiums		72,808		77,953
Property and casualty insurance premiums		29,064		26,841
Net investment and interest income		52,832		53,686
Other revenue		126,598		108,753
Total revenues		2,124,084		2,000,611

Costs and expenses:
Operating expenses		1,025,904		908,942
Commission expenses		164,591		158,716
Cost of sales		96,283		90,461
Benefits and losses		94,327		94,829
Amortization of deferred policy acquisition costs		11,930		12,265
Lease expense		16,339		16,862
Depreciation, net of gains on disposal of ($28,331) and ($10,026), respectively		259,052		259,479
Net losses on disposal of real estate		10		181
Total costs and expenses		1,668,436		1,541,735

Earnings from operations		455,648		458,876
Other components of net periodic benefit costs		(507)		(464)
Interest expense		(70,284)		(62,368)
Pretax earnings		384,857		396,044
Income tax expense		(93,466)		(145,198)
Earnings available to common stockholders	$	291,391	$	250,846
Basic and diluted earnings per common share	$	14.87	$	12.81
Weighted average common shares outstanding: Basic and diluted		19,590,946		19,588,231

Related party revenues for the first six months of fiscal 2019 and 2018, net of eliminations, were $14.6 million and $16.0 million, respectively.

Related party costs and expenses for the first six months of fiscal 2019 and 2018, net of eliminations, were $36.2 million and $34.8 million, respectively.

Please see Note 10, Related Party Transactions, of the Notes to Condensed Consolidated Financial Statements for more information on the related party revenues and costs and expenses.

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMERCO AND CONSOLIDATED ENTITIES

Condensed consolidatED statements of COMPREHENSIVE INCOME (loss)

Quarter Ended September 30, 2018		Pre-tax		Tax		Net
		(Unaudited)
		(In thousands)
Comprehensive income:
Net earnings	$	215,660	$	(52,118)	$	163,542
Other comprehensive income (loss):
Foreign currency translation		1,113		–		1,113
Unrealized net loss on investments		(22,280)		4,679		(17,601)
Change in fair value of cash flow hedges		286		(70)		216
Total comprehensive income	$	194,779	$	(47,509)	$	147,270



Quarter Ended September 30, 2017		Pre-tax		Tax		Net
		(Unaudited)
		(In thousands)
Comprehensive income:
Net earnings	$	197,358	$	(72,719)	$	124,639
Other comprehensive income (loss):
Foreign currency translation		12,767		–		12,767
Unrealized net gain on investments		15,473		(5,416)		10,057
Change in fair value of cash flow hedges		1,194		(454)		740
Total comprehensive income	$	226,792	$	(78,589)	$	148,203

Six Months Ended September 30, 2018		Pre-tax		Tax		Net
		(Unaudited)
		(In thousands)
Comprehensive income:
Net earnings	$	384,857	$	(93,466)	$	291,391
Other comprehensive income (loss):
Foreign currency translation		(980)		–		(980)
Unrealized net loss on investments		(72,498)		15,225		(57,273)
Change in fair value of cash flow hedges		846		(208)		638
Total comprehensive income	$	312,225	$	(78,449)	$	233,776



Six Months Ended September 30, 2017		Pre-tax		Tax		Net
		(Unaudited)
		(In thousands)
Comprehensive income:
Net earnings	$	396,044	$	(145,198)	$	250,846
Other comprehensive income (loss):
Foreign currency translation		21,034		–		21,034
Unrealized net gain on investments		26,104		(9,136)		16,968
Change in fair value of cash flow hedges		2,744		(1,044)		1,700
Total comprehensive income	$	445,926	$	(155,378)	$	290,548

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMERCO AND CONSOLIDATED ENTITIES

Condensed consolidatED statements of cash flows

		Six Months Ended September 30,
		2018		2017
		(Unaudited)
		(In thousands)
Cash flows from operating activities:
Net earnings	$	291,391	$	250,846
Adjustments to reconcile net earnings to cash provided by operations:
Depreciation		287,383		269,505
Amortization of deferred policy acquisition costs		11,930		12,265
Amortization of debt issuance costs		2,013		1,946
Interest credited to policyholders		17,726		15,119
Change in allowance for losses on trade receivables		309		(2)
Change in allowance for inventories and parts reserves		1,148		2,953
Net gains on disposal of personal property		(28,331)		(10,026)
Net losses on disposal of real estate		10		181
Net (gains) losses on sales of investments		55		(3,059)
Deferred income taxes		89,829		63,065
Net change in other operating assets and liabilities:
Reinsurance recoverables and trade receivables		(14,453)		(15,895)
Inventories and parts		(4,347)		(21,036)
Prepaid expenses		(17,709)		41,486
Capitalization of deferred policy acquisition costs		(12,926)		(15,154)
Other assets		58,139		(10,444)
Related party assets		6,181		8,958
Accounts payable and accrued expenses		63,582		69,550
Policy benefits and losses, claims and loss expenses payable		(49,774)		12,057
Other policyholders' funds and liabilities		3,302		10,305
Deferred income		(124)		3,660
Related party liabilities		(3,276)		(3,662)
Net cash provided by operating activities		702,058		682,618

Cash flows from investing activities:
Escrow deposits		1,362		27,059
Purchases of:
Property, plant and equipment		(1,114,544)		(754,052)
Short term investments		(22,335)		(34,765)
Fixed maturities investments		(239,972)		(219,620)
Equity securities		(957)		(662)
Preferred stock		(81)		(1,000)
Real estate		(218)		(118)
Mortgage loans		(24,132)		(50,817)
Proceeds from sales and paydowns of:
Property, plant and equipment		429,910		259,450
Short term investments		24,568		38,927
Fixed maturities investments		65,270		70,792
Preferred stock		1,125		988
Real estate		–		2,664
Mortgage loans		12,912		9,584
Net cash used by investing activities		(867,092)		(651,570)

Cash flows from financing activities:
Borrowings from credit facilities		313,299		285,532
Principal repayments on credit facilities		(182,955)		(214,354)
Payment of debt issuance costs		(1,420)		(3,413)
Capital lease payments		(147,913)		(150,302)
Employee stock ownership plan shares		(137)		(3,960)
Securitization deposits		–		(186)
Common stock dividends paid		(29,385)		(19,587)
Investment contract deposits		179,608		232,752
Investment contract withdrawals		(71,228)		(97,262)
Net cash provided by financing activities		59,869		29,220

Effects of exchange rate on cash		(1,783)		10,277

Increase (decrease) in cash and cash equivalents		(106,948)		70,545
Cash and cash equivalents at the beginning of period		759,388		697,806
Cash and cash equivalents at the end of period	$	652,440	$	768,351

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMERCO and consolidated entities

notes to condensed consolidatED financial statements

1.Basis of Presentation

AMERCO, a Nevada corporation (“AMERCO”), has a second fiscal quarter that ends on the 30th of September for each year that is referenced. Our insurance company subsidiaries have a second quarter that ends on the 30th of June for each year that is referenced. They have been consolidated on that basis. Our insurance companies’ financial reporting processes conform to calendar year reporting as required by state insurance departments. Management believes that consolidating their calendar year into our fiscal year financial statements does not materially affect the presentation of financial position or results of operations. We disclose material events, if any, occurring during the intervening period. Consequently, all references to our insurance subsidiaries’ years 2018 and 2017 correspond to fiscal 2019 and 2018 for AMERCO.

Accounts denominated in non-U.S. currencies have been translated into U.S. dollars. Certain amounts reported in previous years have been reclassified to conform to the current presentation.

The condensed consolidated balance sheet as of September 30, 2018 and the related condensed consolidated statements of operations, comprehensive income (loss) for the second quarter and first six months and cash flows for the first six months of fiscal 2019 and 2018 are unaudited.

In our opinion, all adjustments necessary for the fair presentation of such condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. Interim results are not necessarily indicative of results for a full year. The information in this Quarterly Report on Form 10-Q (“Quarterly Report”) should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018.

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 reportable segments. They are Moving and Storage, Property and Casualty Insurance and Life Insurance.

The Moving and Storage operating segment (“Moving and Storage”) includes AMERCO, U-Haul, and Real Estate and the wholly-owned subsidiaries of U-Haul and Real Estate. Operations consist of the rental of trucks and trailers, sales of moving supplies, sales of towing accessories, sales of propane and the rental of fixed and portable moving and storage units to the “do-it-yourself” mover and management of self-storage properties owned by others. Operations are conducted under the registered trade name U-Haul® throughout the United States and Canada.

AMERCO and consolidated entities

notes to condensed consolidatED financial statements (Continued)

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.

2. Earnings per Share

Our earnings per share is calculated by dividing our earnings available to common stockholders by the weighted average common shares outstanding, basic and diluted.

The weighted average common shares outstanding exclude post-1992 shares of the employee stock ownership plan that have not been committed to be released. The unreleased shares, net of shares committed to be released, were 16,128 and 18,885 as of September 30, 2018 and 2017, respectively.

3. Investments

Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

We deposit bonds with insurance regulatory authorities to meet statutory requirements. The adjusted cost of bonds on deposit with insurance regulatory authorities was $31.1 million and $32.4 million as of September 30, 2018 and March 31, 2018, respectively.

Available-for-Sale Investments

Available-for-sale investments as of September 30, 2018 were as follows:

		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses More than 12 Months		Gross Unrealized Losses Less than 12 Months		Estimated Market Value
		(Unaudited)
		(In thousands)
U.S. treasury securities and government obligations	$	125,462	$	1,394	$	(1,688)	$	(1,541)	$	123,627
U.S. government agency mortgage-backed securities		62,273		628		(2)		(981)		61,918
Obligations of states and political subdivisions		204,297		6,623		(229)		(495)		210,196
Corporate securities		1,497,362		17,605		(5,695)		(27,178)		1,482,094
Mortgage-backed securities		101,647		709		–		(1,027)		101,329
Redeemable preferred stocks		1,493		63		–		–		1,556
	$	1,992,534	$	27,022	$	(7,614)	$	(31,222)	$	1,980,720

		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses More than 12 Months		Gross Unrealized Losses Less than 12 Months		Estimated Market Value

		(In thousands)
U.S. treasury securities and government obligations	$	123,557	$	3,595	$	(1,036)	$	(203)	$	125,913
U.S. government agency mortgage-backed securities		36,416		951		(1)		(93)		37,273
Obligations of states and political subdivisions		178,702		9,938		(217)		(18)		188,405
Corporate securities		1,388,300		50,056		(3,009)		(1,826)		1,433,521
Mortgage-backed securities		94,106		2,072		–		(153)		96,025
Redeemable preferred stocks		2,118		129		–		–		2,247
	$	1,823,199	$	66,741	$	(4,263)	$	(2,293)	$	1,883,384

		September 30, 2018				March 31, 2018
		Amortized Cost		Estimated Market Value		Amortized Cost		Estimated Market Value
		(Unaudited)
		(In thousands)
Due in one year or less	$	54,102	$	54,349	$	36,446	$	36,674
Due after one year through five years		489,499		489,545		441,223		450,816
Due after five years through ten years		625,687		619,371		607,895		626,174
Due after ten years		720,106		714,570		641,411		671,448
		1,889,394		1,877,835		1,726,975		1,785,112

Mortgage backed securities		101,647		101,329		94,106		96,025
Redeemable preferred stocks		1,493		1,556		2,118		2,247
	$	1,992,534	$	1,980,720	$	1,823,199	$	1,883,384

				September 30,		March 31,
	2019 Rate (a)	Maturities		2018		2018
				(Unaudited)
				(In thousands)
Real estate loan (amortizing term)	3.63%	2023	$	107,913	$	135,287
Senior mortgages	3.72% - 6.62%	2021 - 2038		1,510,404		1,487,645
Working capital loans (revolving credit)	3.45% - 3.46%	2020 - 2021		185,000		55,000
Fleet loans (amortizing term)	1.95% - 4.66%	2018 - 2025		286,987		342,971
Fleet loans (revolving credit)	3.23% - 3.26%	2021 - 2022		520,000		460,000
Capital leases (rental equipment)	1.92% - 5.04%	2018 - 2025		1,026,092		984,217
Other obligations	2.75% - 8.00%	2018 - 2047		75,200		73,579
Notes, loans and leases payable				3,711,596		3,538,699
Less: Debt issuance costs				(25,024)		(25,623)
Total notes, loans and leases payable, net			$	3,686,572	$	3,513,076

(a) Interest rate as of September 30, 2018, including the effect of applicable hedging instruments.

		Twelve Months Ending September 30,
		2019		2020		2021		2022		2023		Thereafter
		(Unaudited)
		(In thousands)
Notes, loans and leases payable, secured	$	458,613	$	595,502	$	552,231	$	539,667	$	211,857	$	1,353,726

		Quarter Ended September 30,
		2018		2017
		(Unaudited)
		(In thousands)
Interest expense	$	36,220	$	31,863
Capitalized interest		(2,227)		(1,929)
Amortization of transaction costs		881		1,014
Interest expense resulting from derivatives		156		1,075
Total interest expense		35,030		32,023

		Revolving Credit Activity
		Quarter Ended September 30,
		2018		2017
		(Unaudited)
		(In thousands, except interest rates)
Weighted average interest rate during the quarter		3.06%		2.43%
Interest rate at the end of the quarter		2.81%		2.43%
Maximum amount outstanding during the quarter	$	705,000	$	538,000
Average amount outstanding during the quarter	$	585,924	$	516,946
Facility fees	$	128	$	49

	Original variable rate debt amount		Agreement Date	Effective Date	Expiration Date	Designated cash flow hedge date
	(Unaudited)
	(In millions)
$	15.1	(a)	3/27/2012	3/28/2012	3/28/2019	3/26/2012
	25.0		4/13/2012	4/16/2012	4/1/2019	4/12/2012
	44.3		1/11/2013	1/15/2013	12/15/2019	1/11/2013

	(a) operating lease

		Derivatives Fair Values as of
		September 30, 2018		March 31, 2018
		(Unaudited)
		(In thousands)
Interest rate contracts designated as hedging instruments
Assets	$	359	$	437
Liabilities		–		(897)

		The Effect of Interest Rate Contracts on the Statements of Operations for the Six Months Ended

		September 30, 2018		September 30, 2017
		(Unaudited)
		(In thousands)
Loss recognized in income on interest rate contracts	$	672	$	2,624
Gain recognized in AOCI on interest rate contracts (effective portion)	$	(846)	$	(2,744)
Loss reclassified from AOCI into income (effective portion)	$	645	$	2,618
(Gain) loss recognized in income on interest rate contracts (ineffective portion and amount excluded from effectiveness testing)	$	27	$	6

		Foreign Currency Translation		Unrealized Net Gain (Loss) on Investments		Fair Market Value of Cash Flow Hedges		Postretirement Benefit Obligation Net Loss		Accumulated Other Comprehensive Income (Loss)
		(Unaudited)
		(In thousands)
Balance as of March 31, 2018	$	(54,853)	$	52,509	$	(370)	$	(1,909)	$	(4,623)
Foreign currency translation		(980)		–		–		–		(980)
Unrealized net loss on investments		–		(57,273)		–		–		(57,273)
Change in fair value of cash flow hedges		–		–		1,283		–		1,283
Amounts reclassified from AOCI		–		–		(645)		–		(645)
Other comprehensive income (loss)		(980)		(57,273)		638		–		(57,615)
Balance as of September 30, 2018	$	(55,833)	$	(4,764)	$	268	$	(1,909)	$	(62,238)

Common Stock Dividends
Declared Date		Per Share Amount	Record Date	Dividend Paid Date
August 23, 2018	$	0.50	September 10, 2018	September 24, 2018
June 6, 2018		0.50	June 21, 2018	July 5, 2018
March 8, 2018		0.50	March 23, 2018	April 6, 2018

		Property, Plant and Equipment				Rental Equipment
		Ground		Operating		Operating		Total
		(Unaudited)
		(In thousands)
Year-ended September 30:
2019	$	1,024	$	17,677	$	5,394	$	24,095
2020		1,024		17,880		–		18,904
2021		1,027		16,267		–		17,294
2022		1,030		15,527		–		16,557
2023		1,030		15,003		–		16,033
Thereafter		49,134		12,991		–		62,125
Total	$	54,269	$	95,345	$	5,394	$	155,008

		Moving & Storage Consolidated		Property & Casualty Insurance (a)		Life Insurance (a)		Eliminations			AMERCO Consolidated
		(Unaudited)
		(In thousands)
Assets:
Cash and cash equivalents	$	618,163	$	7,247	$	27,030	$	–		$	652,440
Reinsurance recoverables and trade receivables, net		78,630		98,531		30,504		–			207,665
Inventories and parts, net		93,071		–		–		–			93,071
Prepaid expenses		183,350		–		–		–			183,350
Investments, fixed maturities and marketable equities		–		282,811		1,732,591		–			2,015,402
Investments, other		22,749		67,253		317,772		–			407,774
Deferred policy acquisition costs, net		–		–		138,938		–			138,938
Other assets		176,628		762		3,085		–			180,475
Related party assets		32,155		8,544		16,902		(27,344)	(c)		30,257
		1,204,746		465,148		2,266,822		(27,344)			3,909,372

Investment in subsidiaries		512,244		–		–		(512,244)	(b)		–

Property, plant and equipment, at cost:
Land		899,095		–		–		–			899,095
Buildings and improvements		3,581,419		–		–		–			3,581,419
Furniture and equipment		656,389		–		–		–			656,389
Rental trailers and other rental equipment		562,167		–		–		–			562,167
Rental trucks		4,597,016		–		–		–			4,597,016
		10,296,086		–		–		–			10,296,086
Less: Accumulated depreciation		(2,881,613)		–		–		–			(2,881,613)
Total property, plant and equipment		7,414,473		–		–		–			7,414,473
Total assets	$	9,131,463	$	465,148	$	2,266,822	$	(539,588)		$	11,323,845

(a) Balances as of June 30, 2018
(b) Eliminate investment in subsidiaries
(c) Eliminate intercompany receivables and payables

		Moving & Storage Consolidated		Property & Casualty Insurance (a)		Life Insurance (a)		Elimination		AMERCO Consolidated
		(Unaudited)
Cash flows from operating activities:		(In thousands)
Net earnings	$	291,391	$	8,399	$	7,243	$	(15,642)	$	291,391
Earnings from consolidated entities		(15,642)		–		–		15,642		–
Adjustments to reconcile net earnings to the cash provided by operations:
Depreciation		287,383		–		–		–		287,383
Amortization of deferred policy acquisition costs		–		–		11,930		–		11,930
Amortization of debt issuance costs		2,013		–		–		–		2,013
Interest credited to policyholders		–		–		17,726		–		17,726
Change in allowance for losses on trade receivables		313		–		(4)		–		309
Change in allowance for inventories and parts reserve		1,148		–		–		–		1,148
Net gains on disposal of personal property		(28,331)		–		–		–		(28,331)
Net losses on disposal of real estate		10		–		–		–		10
Net (gains) losses on sales of investments		–		(66)		121		–		55
Deferred income taxes		89,160		1,228		(559)		–		89,829
Net change in other operating assets and liabilities:
Reinsurance recoverables and trade receivables		(14,166)		1,151		(1,438)		–		(14,453)
Inventories and parts		(4,347)		–		–		–		(4,347)
Prepaid expenses		(17,709)		–		–		–		(17,709)
Capitalization of deferred policy acquisition costs		–		–		(12,926)		–		(12,926)
Other assets		58,539		80		(480)		–		58,139
Related party assets		7,798		(1,617)		–		–		6,181
Accounts payable and accrued expenses		49,346		1,106		13,130		–		63,582
Policy benefits and losses, claims and loss expenses payable		(54,882)		1,166		3,942		–		(49,774)
Other policyholders' funds and liabilities		–		14		3,288		–		3,302
Deferred income		(124)		–		–		–		(124)
Related party liabilities		(2,207)		(453)		(616)		–		(3,276)
Net cash provided (used) by operating activities		649,693		11,008		41,357		–		702,058

Cash flows from investing activities:
Escrow deposits		1,362		–		–		–		1,362
Purchases of:
Property, plant and equipment		(1,114,544)		–		–		–		(1,114,544)
Short term investments		–		(22,092)		(243)		–		(22,335)
Fixed maturities investments		–		(17,588)		(222,384)		–		(239,972)
Equity securities		–		–		(957)		–		(957)
Preferred stock		–		–		(81)		–		(81)
Real estate		–		(144)		(74)		–		(218)
Mortgage loans		–		(4,612)		(19,520)		–		(24,132)
Proceeds from sales and paydowns of:
Property, plant and equipment		429,910		–		–		–		429,910
Short term investments		–		24,568		–		–		24,568
Fixed maturities investments		–		7,921		57,349		–		65,270
Preferred stock		–		1,125		–		–		1,125
Real estate		–		–		–		–		–
Mortgage loans		–		422		12,490		–		12,912
Net cash provided (used) by investing activities		(683,272)		(10,400)		(173,420)		–		(867,092)
		(page 1 of 2)
(a) Balance for the period ended June 30, 2018

		United States		Canada		Consolidated
		(Unaudited)
		(All amounts are in thousands of U.S. $'s)
Quarter Ended September 30, 2018
Total revenues	$	1,049,846	$	54,661	$	1,104,507
Depreciation and amortization, net of (gains) losses on disposals		137,527		997		138,524
Interest expense		34,324		706		35,030
Pretax earnings		208,208		7,452		215,660
Income tax expense		50,107		2,011		52,118
Identifiable assets		10,963,411		360,434		11,323,845

Quarter Ended September 30, 2017
Total revenues	$	988,808	$	53,878	$	1,042,686
Depreciation and amortization, net of (gains) losses on disposals		136,597		2,325		138,922
Interest expense		31,268		755		32,023
Pretax earnings		192,625		4,733		197,358
Income tax expense		71,280		1,439		72,719
Identifiable assets		9,621,634		461,256		10,082,890

As of September 30, 2018		Total		Level 1		Level 2		Level 3
		(Unaudited)
		(In thousands)
Assets
Short term investments	$	401,666	$	401,666	$	–	$	–
Fixed maturities - available for sale		1,979,164		7,298		1,971,616		250
Preferred stock		9,565		9,565		–		–
Common stock		26,673		26,673		–		–
Derivatives		3,855		3,496		359		–
Total	$	2,420,923	$	448,698	$	1,971,975	$	250


Liabilities
Derivatives	$	–	$	–	$	–	$	–
Total	$	–	$	–	$	–	$	–

As of March 31, 2018		Total		Level 1		Level 2		Level 3
		(In thousands)
Assets
Short term investments	$	475,320	$	475,320	$	–	$	–
Fixed maturities - available for sale		1,881,137		7,567		1,873,293		277
Preferred stock		10,861		10,861		–		–
Common stock		27,862		27,862		–		–
Derivatives		4,825		4,388		437		–
Total	$	2,400,005	$	525,998	$	1,873,730	$	277


Liabilities
Derivatives	$	897	$	–	$	897	$	–
Total	$	897	$	–	$	897	$	–

.		Fixed Maturities - Asset Backed Securities
		(Unaudited)
		(In thousands)
Balance as of March 31, 2018	$	277

Fixed Maturities - Asset Backed Securities - redeemed		(46)
Fixed Maturities - Asset Backed Securities - net gain (unrealized)		19
Balance as of September 30, 2018	$	250

		Moving & Storage		Property & Casualty Insurance (a)		Life Insurance (a)
		(Unaudited)
		(In thousands)
Cash and cash equivalents	$	618,163	$	7,247	$	27,030
Other financial assets		133,534		457,139		2,097,769
Debt obligations		3,686,572		–		–

(a) As of June 30, 2018


Exhibit Number	Description	Page or Method of Filing
3.1	Amended and Restated Articles of Incorporation of AMERCO	Incorporated by reference to AMERCO’s Current Report on Form 8-K, filed on June 9, 2016, file no. 1-11255
3.2	Restated Bylaws of AMERCO	Incorporated by reference to AMERCO’s Current Report on Form 8-K, filed on September 5, 2013, file no. 1-11255
4.1	Thirty-Third Supplemental Indenture and Pledge and Security Agreement dated August 28, 2018, by and between AMERCO and U.S. Bank National Association, as trustee	Incorporated by reference to AMERCO’s Current Report on Form 8-K, filed on August 28, 2018, file no. 1-11255
4.2	Amended and Restated Twenty-Fifth Supplemental Indenture and Pledge and Security Agreement dated August 28, 2018, by and between AMERCO and U.S. Bank National Association, as trustee	Incorporated by reference to AMERCO’s Current Report on Form 8-K, filed on August 28, 2018, file no. 1-11255
4.3	Thirty-Fourth Supplemental Indenture and Pledge and Security Agreement dated October 23, 2018, by and between AMERCO and U.S. Bank National Association, as trustee	Incorporated by reference to AMERCO’s Current Report on Form 8-K, filed on October 23, 2018, file no. 1-11255
31.1	Rule 13a-14(a)/15d-14(a) Certificate of Edward J. Shoen, President and Chairman of the Board of AMERCO	Filed herewith
31.2	Rule 13a-14(a)/15d-14(a) Certificate of Jason A. Berg, Chief Financial Officer of AMERCO	Filed herewith
32.1	Certificate of Edward J. Shoen, President and Chairman of the Board of AMERCO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Furnished herewith
32.2	Certificate of Jason A. Berg, Chief Financial Officer of AMERCO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Furnished herewith
101.INS	XBRL Instance Document	Filed herewith
101.SCH	XBRL Taxonomy Extension Schema	Filed herewith
101.CAL	XBRL Taxonomy Extension Calculation Linkbase	Filed herewith
101.LAB	XBRL Taxonomy Extension Label Linkbase	Filed herewith
101.PRE	XBRL Taxonomy Extension Presentation Linkbase	Filed herewith
101.DEF	XBRL Taxonomy Extension Definition Linkbase	Filed herewith

Date: November 7, 2018		/s/ Edward J. Shoen
		Edward J. Shoen
		President and Chairman of the Board
		(Duly Authorized Officer)



Date: November 7, 2018		/s/ Jason A. Berg
		Jason A. Berg
		Chief Financial Officer
		(Principal Financial Officer)



Date: November 7, 2018		/s/ Mary K. Thompson
		Mary K. Thompson
		Chief Accounting Officer