AMERCO /NV/ (Form: 10-Q, Received: 02/05/2014 16:17:41)

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 December 31 , 2013

[ ] 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)
	1325 Airmotive Way, Ste. 100
	Reno, Nevada 89502-3239
	Telephone (775) 688-6300

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 requiremen ts for the past 90 days. Yes [x] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulat ion 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 ac celerated filer, a non-accelerated filer , or a smaller reporting company. See the definition s of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [x] Accelerated filer [ ]

Non-accelerated filer [ ] (Do not check if a smaller reporting company) Smaller reporting company [ ]

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 February 1, 201 4

TABLE OF CONTENTS

		Page
	PART I FINANCIAL INFORMATION
Item 1.	Financial Statements
	a) Condensed Consolidated Balance Sheets as of December 31 , 2013 (unaudited) and March 31, 2013	1
	b) Condensed Consolidated Statements of Operations for the Quarters ended December 31 , 2013 and 2012 (unaudited)	2
	c) Condensed Consol i dated Statement of Operations for the Nine Months ended December 31 , 2013 and 2012 (unaudited)	3
	d ) Condensed Consolidated Statements of Comprehensive Income for the Quarters and Nine Months ended December 31 , 2013 and 2012 (unaudited)	4
	e ) Condensed Consolidated Statements of Cash Flows for the Nine Months ended December 31 , 2013 and 2012 (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	3 7
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	59
Item 4.	Controls and Procedures	60

	PART II OTHER INFORMATION
Item 1.	Legal Proceedings	61
Item 1A.	Risk Factors	61
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	61
Item 3.	Defaults Upon Senior Securities	61
Item 4.	Mine and Safety Disclosures	61
Item 5.	Other Information	61
Item 6.	Exhibits	61

Part i Financial information

ITEM 1. Financial Statements

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED balance sheets

		December 31,		March 31,
		2013		2013
		(Unaudited)
		(In thousands, except share data)
ASSETS
Cash and cash equivalents	$	601,615	$	463,744
Reinsurance recoverables and trade receivables, net		228,424		261,789
Inventories, net		65,258		56,396
Prepaid expenses		44,344		57,451
Investments, fixed maturities and marketable equities		1,122,121		1,095,338
Investments, other		239,348		241,765
Deferred policy acquisition costs, net		114,467		93,043
Other assets		95,395		99,986
Related party assets		170,038		182,035
		2,681,010		2,551,547
Property, plant and equipment, at cost:
Land		392,725		333,228
Buildings and improvements		1,382,182		1,197,875
Furniture and equipment		320,587		311,142
Rental trailers and other rental equipment		356,416		317,476
Rental trucks		2,426,453		2,154,688
		4,878,363		4,314,409
Less: Accumulated depreciation		(1,685,264)		(1,559,355)
Total property, plant and equipment		3,193,099		2,755,054
Total assets	$	5,874,109	$	5,306,601
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued expenses	$	351,796	$	358,491
Notes, loans and leases payable		1,862,869		1,661,845
Policy benefits and losses, claims and loss expenses payable		1,095,610		1,115,048
Liabilities from investment contracts		596,268		510,789
Other policyholders' funds and liabilities		7,271		7,294
Deferred income		29,489		30,217
Deferred income taxes		436,384		393,658
Total liabilities		4,379,687		4,077,342

Commitments and contingencies (notes 4, 8, 9 and 10)		–		–
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 December 31 and March 31, 2013		–		–
Series B preferred stock, with no par value, 100,000 shares authorized; none
issued and outstanding as of December 31 and March 31, 2013		–		–
Series common stock, with or without par value, 150,000,000 shares authorized:
Series A common stock of $0.25 par value, 10,000,000 shares authorized;
none issued and outstanding as of December 31 and March 31, 2013		–		–
Common stock of $0.25 par value, 150,000,000 shares authorized; 41,985,700
issued and 19,607,788 outstanding as of December 31 and March 31, 2013		10,497		10,497
Additional paid-in capital		442,841		438,168
Accumulated other comprehensive loss		(46,192)		(22,680)
Retained earnings		1,766,242		1,482,630
Cost of common shares in treasury, net (22,377,912 shares as of December 31 and March 31, 2013)		(525,653)		(525,653)
Cost of preferred shares in treasury, net (6,100,000 shares as of December 31 and March 31, 2013)		(151,997)		(151,997)
Unearned employee stock ownership plan shares		(1,316)		(1,706)
Total stockholders' equity		1,494,422		1,229,259
Total liabilities and stockholders' equity	$	5,874,109	$	5,306,601

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

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED Statements of operations

		Quarter Ended December 31,
		2013		2012
		(Unaudited)
		(In thousands, except share and per share amounts)
Revenues:
Self-moving equipment rentals	$	436,207	$	394,945
Self-storage revenues		46,120		39,111
Self-moving and self-storage products and service sales		47,045		44,491
Property management fees		7,133		6,085
Life insurance premiums		39,198		43,248
Property and casualty insurance premiums		12,219		9,816
Net investment and interest income		20,887		22,603
Other revenue		32,537		22,188
Total revenues		641,346		582,487

Costs and expenses:
Operating expenses		313,227		290,285
Commission expenses		55,573		51,130
Cost of sales		28,229		23,153
Benefits and losses		38,630		42,608
Amortization of deferred policy acquisition costs		4,457		3,391
Lease expense		24,468		27,575
Depreciation, net of (gains) on disposals of (($1,961) and ($1,831), respectively)		70,789		62,399
Total costs and expenses		535,373		500,541

Earnings from operations		105,973		81,946
Interest expense		(23,607)		(22,076)
Pretax earnings		82,366		59,870
Income tax expense		(30,145)		(23,024)
Earnings available to common stockholders	$	52,221	$	36,846
Basic and diluted earnings per common share	$	2.67	$	1.89
Weighted average common shares outstanding: Basic and diluted		19,563,663		19,523,794

Related party revenues for the third quarter of fiscal 201 4 and 201 3 , net of eliminations, were $ 10.2 million and $ 9.4 million , respectively.

Related party costs and expenses for the third quarter of fiscal 201 4 and 201 3 , net of eliminations, were $ 11.8 million and $ 10.4 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 in tegral part of these condensed consolidated financial statements.

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED Statements of operations

		Nine Months Ended December 31,
		2013		2012
		(Unaudited)
		(In thousands, except share and per share amounts)
Revenues:
Self-moving equipment rentals	$	1,556,787	$	1,400,300
Self-storage revenues		133,791		111,825
Self-moving and self-storage products and service sales		183,115		173,399
Property management fees		17,586		15,847
Life insurance premiums		119,708		137,341
Property and casualty insurance premiums		31,052		26,006
Net investment and interest income		59,836		52,973
Other revenue		122,793		76,589
Total revenues		2,224,668		1,994,280

Costs and expenses:
Operating expenses		973,268		883,892
Commission expenses		202,578		180,801
Cost of sales		98,331		86,292
Benefits and losses		119,255		139,418
Amortization of deferred policy acquisition costs		14,197		9,290
Lease expense		77,293		89,962
Depreciation, net of (gains) on disposals of (($22,837) and ($14,879), respectively)		191,431		177,478
Total costs and expenses		1,676,353		1,567,133

Earnings from operations		548,315		427,147
Interest expense		(70,053)		(67,680)
Pretax earnings		478,262		359,467
Income tax expense		(175,082)		(132,632)
Earnings available to common shareholders	$	303,180	$	226,835
Basic and diluted earnings per common share	$	15.50	$	11.62
Weighted average common shares outstanding: Basic and diluted		19,554,641		19,512,974

Related party revenues for the first nine months of fiscal 201 4 and 201 3 , net of eliminations, were $ 27.0 million and $ 26.3 million , respectively.

Related party costs and expenses for the first nine months of fiscal 201 4 and 201 3 , net of eliminations, were $41.7 million and $ 36.6 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 December 31, 2013		Pre-tax		Tax		Net
		(Unaudited)
		(In thousands)
Comprehensive income:
Net earnings	$	82,366	$	(30,145)	$	52,221
Other comprehensive income (loss):
Foreign currency translation		(3,325)		–		(3,325)
Unrealized net loss on investments		(2,251)		766		(1,485)
Change in fair value of cash flow hedges		4,398		(1,671)		2,727
Total comprehensive income	$	81,188	$	(31,050)	$	50,138



Quarter Ended December 31, 2012		Pre-tax		Tax		Net
		(Unaudited)
		(In thousands)
Comprehensive income:
Net earnings	$	59,870	$	(23,024)	$	36,846
Other comprehensive income (loss):
Foreign currency translation		(1,068)		–		(1,068)
Unrealized net gain on investments		18,368		(6,574)		11,794
Change in fair value of cash flow hedges		4,248		(1,614)		2,634
Total comprehensive income	$	81,418	$	(31,212)	$	50,206


Nine Months Ended December 31, 2013		Pre-tax		Tax		Net
		(Unaudited)
		(In thousands)
Comprehensive income:
Net earnings	$	478,262	$	(175,082)	$	303,180
Other comprehensive income (loss):
Foreign currency translation		(5,530)		–		(5,530)
Unrealized net loss on investments		(43,257)		15,020		(28,237)
Change in fair value of cash flow hedges		16,540		(6,285)		10,255
Total comprehensive income	$	446,015	$	(166,347)	$	279,668



Nine Months Ended December 31, 2012		Pre-tax		Tax		Net
		(Unaudited)
		(In thousands)
Comprehensive income:
Net earnings	$	359,467	$	(132,632)	$	226,835
Other comprehensive income (loss):
Foreign currency translation		462		–		462
Unrealized net gain on investments		30,914		(10,923)		19,991
Change in fair value of cash flow hedges		4,501		(1,710)		2,791
Total comprehensive income	$	395,344	$	(145,265)	$	250,079

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

AMERCO AND CONSOLIDATED ENTITIES

Condensed consolidatED statements of cash flows

		Nine Months Ended December 31,
		2013		2012
		(Unaudited)
		(In thousands)
Cash flow from operating activities:
Net earnings	$	303,180	$	226,835
Adjustments to reconcile net earnings to cash provided by operations:
Depreciation		214,268		192,357
Amortization of deferred policy acquisition costs		14,197		9,290
Change in allowance for losses on trade receivables		12		(73)
Change in allowance for inventory reserves		3,640		2,050
Net gain on sale of real and personal property		(22,837)		(14,879)
Net gain on sale of investments		(6,088)		(1,050)
Deferred income taxes		48,033		17,757
Net change in other operating assets and liabilities:
Reinsurance recoverables and trade receivables		33,355		71,709
Inventories		(12,502)		696
Prepaid expenses		13,109		(13,283)
Capitalization of deferred policy acquisition costs		(25,128)		(43,085)
Other assets		7,929		22,712
Related party assets		5,630		139,590
Accounts payable and accrued expenses		(2,772)		(872)
Policy benefits and losses, claims and loss expenses payable		(18,337)		(30,226)
Other policyholders' funds and liabilities		(23)		(925)
Deferred income		(672)		(3,704)
Related party liabilities		6,257		1,388
Net cash provided by operating activities		561,251		576,287

Cash flows from investing activities:
Purchases of:
Property, plant and equipment		(690,293)		(422,840)
Short term investments		(203,763)		(289,773)
Fixed maturities investments		(237,502)		(308,290)
Equity securities		(388)		(3,130)
Preferred stock		(635)		(2,761)
Real estate		(431)		(1,053)
Mortgage loans		(48,632)		(50,583)
Proceeds from sales and paydowns of:
Property, plant and equipment		214,078		166,904
Short term investments		211,841		280,890
Fixed maturities investments		124,145		85,132
Equity securities		26,957		–
Preferred stock		6,004		5,728
Real estate		–		671
Mortgage loans		45,234		49,215
Net cash used by investing activities		(553,385)		(489,890)

Cash flows from financing activities:
Borrowings from credit facilities		323,039		251,319
Principal repayments on credit facilities		(238,553)		(234,698)
Debt issuance costs		(3,353)		(2,352)
Capital lease payments		(37,480)		(18,310)
Leveraged Employee Stock Ownership Plan - repayments from loan		390		559
Securitization deposits		–		(1,729)
Common stock dividends paid		–		(97,421)
Investment contract deposits		109,928		268,478
Investment contract withdrawals		(24,448)		(22,937)
Net cash provided by financing activities		129,523		142,909

Effects of exchange rate on cash		482		(362)

Increase in cash and cash equivalents		137,871		228,944
Cash and cash equivalents at the beginning of period		463,744		357,180
Cash and cash equivalents at the end of period	$	601,615	$	586,124
The accompanying notes are an integral part of these consolidated financial statements.

AMERCO and consolidated entities

notes to condensed consolidatED financial statements

1. Basis of Presentation

AMERCO, a Nevada corporation (“AMERCO”), has a third fiscal quarter that ends on the 31 st of December for each year that is referenced. Our insurance company subsidiaries have a third quarter that ends on the 3 0 th of September 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. M anagement believes that consolidating their calendar year into our fiscal year financial statements does not materially affect the financial position or results of operations. The Company discloses any material events occurring during the intervening perio d. Consequently, all references to our insurance subsidiaries’ years 201 3 and 20 12 correspond to fiscal 201 4 and 201 3 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 December 31 , 201 3 and the related condensed consolidated statements of operations , comprehensive income for the third quarter and first nine mon ths and cash flows for the first nine months of fiscal 201 4 and 201 3 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 Financ ial 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, 201 3 .

Intercompany accounts and transactions have been eliminated.

Description of Legal Entiti es

AMERCO is the holding company for:

U-Haul International, Inc. (“U-Haul”),

Amerco Real Estate Company (“Real Estate”),

Rep w est Insurance Company (“Rep w est”), and

Oxford Life Insurance Company (“Oxford”).

Unless the context otherwise requires, the term “Company,” “we,” “us” or “our” refers 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 Stora ge operati ng segment include s 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 mobile self-storage spaces 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 includes Rep w est and its wholly-owned subsidiaries and A RCOA risk retention group (“ARCOA”). The Property and Casualty Insurance operating segment provides loss adjusting and claims handling for U-Haul through regional offices across North America. The Property and Casualty Insurance operating segment also unde rwrites components of the Safemove, Safetow, Safemove Plus, Safestor and Safestor Mobile protection packages to U-Haul customers. The business plan for the Property and Casualty Insurance operating segment includes offering property and casualty products i n 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 the moving and storage business.

The Life Insurance operating segment includes Oxford and its wholly-owned subsidiaries. The Life Insurance operating segment 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 39,570 and 75,657 as of December 31 , 201 3 and 201 2 , respectively.

3. Investments

Expected maturities may differ from contractua l 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 insur ance regulatory authorities was $ 16.3 million at December 31 , 201 3 .

Available-for-Sale Investments

Available-for-sale investments at December 31 , 201 3 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	$	34,222	$	1,877	$	(2)	$	(544)	$	35,553
U.S. government agency mortgage-backed securities		42,401		2,585		(5)		(818)		44,163
Obligations of states and political subdivisions		164,451		7,287		–		(2,793)		168,945
Corporate securities		825,351		28,555		(57)		(24,274)		829,575
Mortgage-backed securities		5,161		321		–		(40)		5,442
Redeemable preferred stocks		18,440		274		(95)		(924)		17,695
Common stocks		18,485		2,751		(416)		(72)		20,748
	$	1,108,511	$	43,650	$	(575)	$	(29,465)	$	1,122,121

The available-for-sale table includes gross unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

We sold available-for-sale securities with a fair value of $153.7 million during the first nine months of fiscal 2014. The gross realized gains on these sales totaled $5.0 million. The gross realized losses on these sales totaled $1.0 million .

The unrealized losses of more than twelve months in the available-for-sale table are considered temporary declines. We track each investment with an unrealized loss and evaluate them on an indi vidual basis for other-than-temporary impairments including obtaining corroborating opinions from third party sources, performing trend analysis and reviewing management’s future plans. Certain of these investments may have declines determined by managemen t to be other-than-temporary and we recognize these write-downs through earnings. There were no write downs in the third quarter or for the first nine months of fiscal 2014 and 2013.

The investment portfolio primarily consists of corporate securities and U .S. government securities. We believe we monitor our investments as appropriate. Our methodology of assessing other-than-temporary impairments is based on security-specific analysis as of the balance sheet date and considers various factors , including the length of time to maturity, the extent to which the fair value has been less than the cost, the financial condition and the near-term prospects of the issuer, and whether the debtor is current on its contractually obligated interest and principal payments. Nothing has come to management’s attention that would lead to the belief that each issuer would not have the ability to meet the remaining contractual obligations of the security, including payment at maturity. We have the ability and intent not to sell o ur fixed maturity and common stock investments for a period of time sufficient to allow us to recover our costs.

The portion of other-than-temporary impairment related to a credit loss is recognized in earnings. The significant inputs utilized in the evalu ation of mortgage - backed securities credit losses include ratings, delinquency rates, and prepayment activity. The significant inputs utilized in the evaluation of asset backed securities credit losses include the time frame for principal recovery and the subordination and value of the underlying collateral.

There were no c redit losses recognized in earnings for which a portion of an other-than-temporary impairment was recognized in the third quarter or for the first nine months of fiscal 2014 in other com prehensive income .

The adjusted cost and estimated market value of available-for-sale investments at December 31 , 201 3 , by contractual maturity, were as follows:

		Amortized Cost		Estimated Market Value
		(Unaudited)
		(In thousands)
Due in one year or less	$	20,299	$	20,458
Due after one year through five years		185,073		194,815
Due after five years through ten years		338,942		343,111
Due after ten years		522,111		519,852
		1,066,425		1,078,236

Mortgage backed securities		5,161		5,442
Redeemable preferred stocks		18,440		17,695
Common stocks		18,485		20,748
	$	1,108,511	$	1,122,121

4. Borrowings

Long-Term Debt

Long-term debt was as follows:

				December 31,		March 31,
	2014 Rate (a)	Maturities		2013		2013
				(Unaudited)
				(In thousands)
Real estate loan (amortizing term)	6.93%	2023	$	252,500	$	235,000
Real estate loan (amortizing term)	2.07%	2016		6,982		24,630
Real estate loan (revolving credit)	–	2014		–		–
Senior mortgages	2.67% - 5.75%	2015 - 2038		691,630		556,522
Working capital loan (revolving credit)	–	2015		–		–
Fleet loans (amortizing term)	1.95% - 6.14%	2014 - 2020		390,083		361,079
Fleet loans (securitization)	4.90%	2017		93,754		190,801
Capital leases (rental equipment)	2.23% - 7.82%	2015 - 2020		390,410		273,458
Other obligations	3.00% - 8.00%	2014 - 2043		37,510		20,355
Total notes, loans and leases payable			$	1,862,869	$	1,661,845

(a) Interest rate as of December 31, 2013, including the effect of applicable hedging instruments.

Real Estate Backed Loans

Real Estate Loan

Amerco Real Estate Company and certain of its subsidiaries and U-Haul Company of Florida are borrowers under a Real Estate Loan. During the first quarter of fiscal 2014 this loan was amended . As part of the amendment the revolver component of the agreement was terminated and certain collateral was released. The final maturity date of the term loan was extended to April 20 23 . As of December 31 , 201 3 , the outstanding balance on the Real Estate Loan was $252.5 million . U-Haul International, Inc. is a guarantor of this loan. The Real Estate Loan requires monthly principal and interest payments, with the unpaid loan balance and accrued and unpaid intere st due at maturity. The Real Estate Loan is secured by various properties owned by the borrowers.

The interest rate, per the provisions of the amended l oan a greement, is the applicable London Inter-Bank Offer Rate (“LIBOR”) plus the applicable margin. At December 31 , 201 3 , the applicable LIBOR was 0.17 % and the applicable margin was 1.50%, the sum of which was 1.67 % which applied to $25.8 million of the Real Estate Loan . The rate on the remaining balance of $226.7 million of the Real Estate Loan is hedged with an interest rate swap fixing the rate at 6.93% based on current margin. The default provisions of the Real Estate Loan include non-payment of principal or interest and other standard reporting and change-in-control covenants. There are limited restri ctions regarding our use of the funds.

Amerco Real Estate Company and a subsidiary of U-Haul International, Inc. entered into a revolving credit construction loan effective June 29, 2006. This loan was modified and extended on June 2 7 , 201 1 . The loan is no w comprised of a term loan facility with an initial availability of $ 26.1 million and a final maturity of June 201 6 . As of December 31 , 201 3 , the outstanding balance was $7.0 million .

This Real Estate Loan requires monthly principal and interest payments , with the unpaid loan balance and any accrued and unpaid interest due at maturity. The interes t rate, per the provision of this loan a greement, is the applicable LIBOR plus a margin of 1.90%. At December 31 , 201 3 , the applicable LIBOR was 0.17 % and the marg in was 1.90%, the sum of which was 2.07 %. U-Haul International , Inc. and AMERCO are guarantors of this loan. The default provisions of the loan include non-payment of principal or interest and other standard reporting and change-in-control covenants.

On April 29, 2011, Amerco Real Estate Company and U-Haul Company of Florida entered into a revolving credit agreement for $100.0 million. This agreement was amended in February 2013 and the maturity extended to April 2014 with an option for a one year exte nsion and the revolver commitment was reduced to $50.0 million. As of December 31 , 2013, we had the full $ 50.0 million available to be drawn. The interest rate is the applicable LIBOR plus a margin of 1.25%. AMERCO and U-Haul International, Inc. are guaran tors of this facility. The default provisions of the loan include non-payment of principal or interest and other standard reporting and change-in-control covenants.

Senior Mortgages

Various subsidiaries of Amerco Real Estate Company and U-Haul Internationa l, Inc. are borrowers under certain senior mortgages. These senior mortgage loan balances as of December 31 , 201 3 were in the aggregate amount of $ 691.6 million and mature between 2015 and 2038 . The s enior m ortgages require average monthly principal and in terest payments with the unpaid loan balance and accrued and unpaid interest due at maturity. 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 4.90 % and 5. 75 %. Additionally, $99.3 million of these loans have an interest rate comprised of an applicable LIBOR of 0.17% plus a margin of 2.50%, the sum of which was 2.67%. Amerco Real Estate Company and U-Haul International, Inc. have provided limited guarantees of the senior mortgages. The default provisions of the senior mortgages include non-payment of principal or interest and other standard reporting and change-in-control covenants. There are limited restrictions regarding our use of the funds.

Working Capital Loans

Amerco Real Estate Company is a borrower under an asset backed working capital loan. The maximum amount that can be drawn at any one time is $25.0 million. At December 31 , 2013, we had the full $25.0 million available to be drawn. Thi s loan is secured by certain properties owned by th e borrower. This loan agreement provides for revolving loans, subject to the terms of the loan agreement. This agreement was amended in February 2013 and the maturity extended to April 2015. This loan requ ires monthly interest payments with the unpaid loan balance and accrued and unpaid interest due at maturity. U-Haul International, Inc. and AMERCO are the guarantors of this loan. The default provisions of the loan include non-payment of principal or inter est and other standard reporting and change-in-control covenants. The interest rate, per the provision of th is loan a greement, is the applicable LIBOR plus a margin of 1. 25 %.

Fleet Loans

Rental Truck Amortizing Loans

U-Haul International, Inc. and several of its subsidiaries are borrowers under amortizing term loans. The balance of the loans as of December 31 , 201 3 was $ 275.1 million with the final maturities between February 2014 and September 2020.

The Amortizing Loa ns require monthly principal and interest payments, with the unpaid loan balance and accrued and unpaid interest due at maturity. These loans were used to purchase new trucks. The interest rates, per the provision of the Loan Agreements, are the applicable LIBOR plus the applicable margin s . At December 31 , 2013, the applicable LIBOR was between 0.16 % and 0.17 % and applicable margins were between 0.90% and 2.63%. The interest rates are hedged with interest rate swaps fixing the rates between 2.82% and 6.14% based on current margins. Additionally, $ 103.0 million of these loans are carried at fixed rates ranging between 1.95% and 3.94 %.

AMERCO and U-Haul International, Inc. are guarantors of these loans. The default provisions of these loans include non-paymen t of principal or interest and other standard reporting and change-in-control covenants.

On December 31, 2009 , a subsidiary of U-Haul International, Inc. entered into an $85.0 million term note that was used to fund new truck acquisitions. This term note w as amended on August 26, 2011. The amount of the term note was increased to $95.0 million. On December 22, 2011, we entered into another term loan for $20.0 million. The final maturity date of these notes is August 2016 . The agreement s contain options to extend the maturity through May 2017 . The se note s are secured by the purchased equipment and the corresponding operating cash flows associated with their operation. These notes have fixed interest rates between 3.52% and 3.53% . At December 31, 2013, the o utstanding balance was $115.0 million .

AMERCO and U-Haul International, Inc. are guarantors 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.

Ren tal Truck Securitizations

U-Haul S Fleet and its subsidiaries (collectively, “USF”) issued a $217.0 million asset-backed note (“2007 B ox Truck Note”) on June 1, 2007 to finance new box truck purchases throughout fiscal 2008. This note was paid in full in N ovember 2013 .

2010 U-Haul S Fleet and its subsidiaries (collectively, “2010 USF”) issued a $155.0 million asset-backed note (“2010 Box Truck Note”) on October 28, 2010. 2010 USF is a bankruptcy-remote special purpose entity wholly-owned by U-Haul Internati onal, Inc. The net proceeds from the securitized transaction were used to finance new box truck purchases. U.S. Bank, NA acts as the trustee for this securitization.

The 2010 Box Truck Note has a fixed interest rate of 4.90% with an expected final maturity of October 2017. At December 31 , 201 3 , the outstanding balance was $ 93.8 million. The note is secur ed by the box trucks being purchased and the corresponding operating cash flows associated with their operation.

The 2010 Box Truck Note is subject to cer tain covenants with respect to liens, additional indebtedness of the special purpose entity , the disposition of assets and other customary covenants of bankruptcy-remote special purpose entities. The default provisions of this note include non-payment of principal or interest and other standard reporting and change-in-control covenants.

Capital Leases

We entered into capital leases for new equipment between April 2008 and December 2013 , with terms of the leases between 3 and 7 years . At December 31 , 2013, the balance of these leases was $ 390.4 million .

Other Obligations

In February 2011 , the Company and US Bank, N ational A ssociation (the “Trustee”) entered into the
U-Haul Investors Club Indenture. The Company and the Trustee entere d 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 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.

A t December 31 , 201 3, the aggregate outstanding principal balance of the U-N otes issued was $ 43.6 million of which $ 6.1 million is with our insurance subsidiaries with interest rates between 3.00% and 8.00% and maturity dates between 201 4 and 204 3 .

Annual M aturities of Notes, Loans and Leases Payable

The annual maturities of long-term debt as of December 31 , 201 3 for the next five years and thereafter are as follows:

		Year Ending December 31,
		2014		2015		2016		2017		2018		Thereafter
		(Unaudited)
		(In thousands)
Notes, loans and leases payable, secured	$	181,314	$	590,424	$	347,710	$	168,771	$	138,288	$	436,362

Interest on Borrowings

Interest Expense

Components of interest expense include the following:

		Quarter Ended December 31,
		2013		2012
		(Unaudited)
		(In thousands)
Interest expense	$	18,532	$	16,540
Capitalized interest		(162)		(119)
Amortization of transaction costs		1,106		1,014
Interest expense resulting from derivatives		4,131		4,641
Total interest expense	$	23,607	$	22,076



		Nine Months Ended December 31,
		2013		2012
		(Unaudited)
		(In thousands)
Interest expense	$	54,401	$	48,715
Capitalized interest		(432)		(290)
Amortization of transaction costs		2,800		3,149
Interest expense resulting from derivatives		13,284		16,106
Total interest expense	$	70,053	$	67,680

Interest paid in cash , including payments related to derivative contracts, amounted to $ 20.7 million and $ 20.8 million for the third quarter of fiscal 201 4 and 201 3, respectively and $65.6 million and $63.3 million for the first nine months of fiscal 2014 and 2013, respectively.

Interest Rates

Interest rates and Company borrowings were as follows:

		Revolving Credit Activity
		Quarter Ended December 31,
		2013		2012
		(Unaudited)
		(In thousands, except interest rates)
Weighted average interest rate during the quarter		0.00%		1.57%
Interest rate at the end of the quarter		0.00%		1.61%
Maximum amount outstanding during the quarter	$	–	$	25,000
Average amount outstanding during the quarter	$	–	$	24,185
Facility fees	$	56	$	115



		Revolving Credit Activity
		Nine Months Ended December 31,
		2013		2012
		(Unaudited)
		(In thousands, except interest rates)
Weighted average interest rate during the first nine months		1.00%		1.67%
Interest rate at the end of the first nine months		0.00%		1.61%
Maximum amount outstanding during the first nine months	$	25,000	$	48,920
Average amount outstanding during the first nine months	$	16,364	$	24,830
Facility fees	$	212	$	399

5 . Derivatives

We manage exposure to changes in market interest rates. Our use of derivative instruments is limited to highly effective interest rate swaps to hedge the risk of changes in cash flows (future interest payments) attributable to changes in LIBOR swap rates, the designated benchmark interest rate being hedged on cert ain of our LIBOR indexed variable rate debt and a variable rate operating lease . The interest rate swaps effectively fix our interest payments on certain LIBOR indexed variable rate debt. We monitor our positions and the credit ratings of our counterpartie s and do not currently anticipate non-performance by the counterparties. Interest rate swap agreements are not entered into for trading purposes.



	Original variable rate debt amount		Agreement Date	Effective Date	Expiration Date	Designated cash flow hedge date
	(in millions)

$	300.0		8/16/2006	8/18/2006	8/10/2018	8/4/2006
	30.0		2/9/2007	2/12/2007	2/10/2014	2/9/2007
	20.0		3/8/2007	3/12/2007	3/10/2014	3/8/2007
	20.0		3/8/2007	3/12/2007	3/10/2014	3/8/2007
	19.3	(a)	4/8/2008	8/15/2008	6/15/2015	3/31/2008
	19.0		8/27/2008	8/29/2008	7/10/2015	4/10/2008
	30.0		9/24/2008	9/30/2008	9/10/2015	9/24/2008
	15.0	(a)	3/24/2009	3/30/2009	3/30/2016	3/25/2009
	14.7	(a)	7/6/2010	8/15/2010	7/15/2017	7/6/2010
	25.0	(a)	4/26/2011	6/1/2011	6/1/2018	7/1/2011
	50.0	(a)	7/29/2011	8/15/2011	8/15/2018	7/29/2011
	20.0	(a)	8/3/2011	9/12/2011	9/10/2018	8/3/2011
	15.1	(b)	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) forward swap
	(b) operating lease

As of December 31, 2013 , the total notional amount of our variable interest rate swaps on debt and an operating lease was $ 400.2 million and $ 12.7 million, respectively .

The derivative fair values located in A ccounts payable and accrued expenses in the balance sheets were as follows:


		Liability Derivatives Fair Values as of
		December 31, 2013		March 31, 2013
		(Unaudited)
		(In thousands)
Interest rate contracts designated as hedging instruments	$	35,462	$	51,550


		The Effect of Interest Rate Contracts on the Statements of Operations For the Nine Months Ended

		December 31, 2013		December 31, 2012
		(Unaudited)
		(In thousands)
Loss recognized in income on interest rate contracts	$	13,284	$	16,106
Gain recognized in AOCI on interest rate contracts (effective portion)	$	(16,540)	$	(4,501)
Loss reclassified from AOCI into income (effective portion)	$	12,832	$	14,828
Loss recognized in income on interest rate contracts (ineffective portion and amount excluded from effectiveness testing)	$	452	$	1,278

Gains or losses recognized in income on derivatives are recorded as interest expense in the statements of operations. At December 31, 2013, we expect to reclassify $ 14.6 million of net losses on interest rate contracts from accumulated other comprehensive income to earnings as interest expense over the next twelve months. During the first ni ne months of fiscal 2014, we reclassified $ 12.8 million of net losses on interest rate contracts from accumulated other comprehensive income to interest expense.

6. Stockholders' Equity

On December 4, 2013, we declared a special cash dividend on our common stock of $1.00 per share to holders of record on January 10, 2014 which will be payable on February 14, 2014.

7 . Comprehensive Income (Loss)

A summary of accumulated other comprehensive income (loss) components, net of tax, were as follows:

		Foreign Currency Translation		Unrealized Net Gain (Loss) on Investments		Fair Market Value of Cash Flow Hedges		Postretirement Benefit Obligation Gain		Accumulated Other Comprehensive Income (Loss)
		(Unaudited)
		(In thousands)
Balance at March 31, 2013	$	(30,153)	$	39,645	$	(32,298)	$	126	$	(22,680)
Foreign currency translation		(5,530)		–		–		–		(5,530)
Unrealized net loss on investments		–		(28,237)		–		–		(28,237)
Change in fair value of cash flow hedges		–		–		(2,577)		–		(2,577)
Amounts reclassified from AOCI		–		–		12,832		–		12,832
Other comprehensive income (loss)		(5,530)		(28,237)		10,255		–		(23,512)
Balance at December 31, 2013	$	(35,683)	$	11,408	$	(22,043)	$	126	$	(46,192)

8 . Contingent Liabilities and Commitments

We lease a portion of our rental equipment and certain of our facilities under operating leases with terms that expire at various dates substantially through 20 20 . As of December 31, 2013 , we have guaranteed $ 96.9 million of residual values for these rental equipment assets at the end of the respective lease terms. Certain leases contain renewal and fair market value purchase options as well as mileage and other restrictions. At the expiration of the lease, we have the option to renew the lease, purchase the asset for fair market value, or sell the asset to a third party on behalf of the lessor. We have been leasing equipment since 1987 and ha ve experienced no material losses relating to these types of residual valu e guarantees.

Lease commitments for leases having terms of more than one year were as follows:


		Property, Plant and Equipment		Rental Equipment		Total
		(Unaudited)
				(In thousands)
Year-ended December 31:
2014	$	7,641	$	64,973	$	72,614
2015		2,039		41,075		43,114
2016		1,909		16,616		18,525
2017		1,782		11,297		13,079
2018		811		9,980		10,791
Thereafter		4,601		3,122		7,723
Total	$	18,783	$	147,063	$	165,846

9 . Contingencies

Environmental

Compliance with environmental requirements of federal, state and local governments may significantly affect Real Estate’s business operations. Among other things, these requirements regulate the discharge of materials into the air, land and water and govern the use and disposal of hazardous substances. Real Estate is aware of issues regarding hazardous substances on some of i ts properties. Real Estate regularly makes capital and operating expenditures to stay in compliance with environmental laws and has put in place a remedial plan at each site where it believes such a plan is necessary. Since 1988, Real Estate has managed a testing and removal program for underground storage tanks.

Based upon the information currently available to Real Estate, compliance with the environmental laws and its share of the costs of investigation and cleanup of known hazardous waste sites are not expected to result in a material adverse effect on AMERCO’s financial position or results of operations.

Other

We are named as a defendant in various other litigation and claims arising out of the normal course of business. In management’s opinion, none of these other matters will have a material effect on our financial position and results of operations.

10 . Related Party Transactions

As set forth in the Audit Committee Charter and consistent with Nasdaq Listing Rules, our Audit Committee (the “Audit Committee”) reviews and maintains oversight over related party transactions which are required to be disclosed under the Securities and Exchange Commission (“SEC”) rules and regulations. Accordingly, all such related party transactions are submitted to the Audit Commi ttee for ongoing review and oversight. Our internal processes ensure that our legal and finance departments identify and monitor potential related party transactions which may require disclosure and Audit Committee oversight.

AMERCO has engaged in related party transactions and has continuing related party interests with certain major stockholders, directors and officers of the consolidated group as disclosed below. Management believes that the transactions described below and in the related notes were comp leted on terms substantially equivalent to those that would prevail in third party, arm’s-length transactions.

SAC Holding Corporation and SAC Holding II Corporation, (collectively “SAC Holdings”) were established in order to acquire and develop self-stor age properties. These properties are being managed by us pursuant to management agreements. Between 1994 and 2002 , we sold real estate and various self-storage properties to SAC Holdings, resulting in significant cash flows to the Company.

Related Party Re venue

		Quarter Ended December 31,
		2013		2012
		(Unaudited)
		(In thousands)
U-Haul interest income revenue from SAC Holdings	$	1,730	$	1,981
U-Haul interest income revenue from Private Mini		1,347		1,356
U-Haul management fee revenue from SAC Holdings		3,977		3,585
U-Haul management fee revenue from Private Mini		614		580
U-Haul management fee revenue from Mercury		2,543		1,920
	$	10,211	$	9,422


		Nine Months Ended December 31,
		2013		2012
		(Unaudited)
		(In thousands)
U-Haul interest income revenue from SAC Holdings	$	5,382	$	6,438
U-Haul interest income revenue from Private Mini		4,033		4,059
U-Haul management fee revenue from SAC Holdings		12,240		11,271
U-Haul management fee revenue from Private Mini		1,812		1,720
U-Haul management fee revenue from Mercury		3,536		2,856
	$	27,003	$	26,344

During the first nine months of fiscal 201 4 , subsidiaries of the Company held various junior unsecured notes of SAC Holdings. Substantially all of the equity interest of SAC Holdings is controlled by Blackwater Investments, Inc. (“Blackwater”). Blackwater is wholly-owned by Mark V. Shoen, a signifi cant stock holder of AMERCO. We do not have an equity ownership interest in SAC Holdings. We received cash interest payments of $ 15.6 million and $ 10.7 million from SAC Holdings during the first nine months of fiscal 201 4 and 201 3 , respectively. The largest aggregate amount of notes receivable outstanding during the first nine months of fiscal 201 4 was $ 72.4 million and the aggregate notes receivable balance at December 31 , 201 3 was $ 71.7 million. In accordance with the terms of these notes, SAC Holdings may prepay the notes without penalty or premium at any time. The scheduled maturities of these notes are between 201 7 and 20 19 .

During the first nine months of fiscal 201 4 , AMERCO and U-Haul held various junior notes issued by Private Mini Storage Realty, L. P. (“Private Mini”). The equity interests of Private Mini are ultimately controlled by Blackwater. We received cash interest payments of $4.0 million and $ 4.1 million from Private Mini during the first nine months of both fiscal 201 4 and 201 3, respectively . The largest aggregate amount outstanding during the first nine months of fiscal 201 4 was $ 65.9 million and t he aggregate notes receivable balance at December 31 , 201 3 was $ 65. 6 million.

We currently manage the self-storage properties owned or leased by SAC Holdings, Mercury Partners, L.P. (“Mercury”), Four SAC Self-Storage Corporation (“4 SAC”), Five SAC Self-Storage Corporation (“5 SAC”), Galaxy Investments, L.P. (“Galaxy”) and Private Mini pursuant to a standard form of management agreement, under whi ch 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 $ 20.8 million and $19.1 million from the above mentioned entities during the first nine months of fiscal 201 4 and 201 3, respectively . This management fee is consistent with the fee received for other properties the Company previously managed for third parties. SAC Holdings, 4 SAC, 5 SAC , Galaxy and Private Mini are substantially controlled by Blackwater. Mercury is substantially controlled by Mark V. Shoen. James P. Shoen, a significant stock holder and director of AMERCO and an estate planning trust benefitting Shoen children also have a n interest in Mercury.

Related Party Costs and Expenses

		Quarter Ended December 31,
		2013		2012
		(Unaudited)
		(In thousands)
U-Haul lease expenses to SAC Holdings	$	655	$	655
U-Haul commission expenses to SAC Holdings		10,414		9,142
U-Haul commission expenses to Private Mini		691		575
	$	11,760	$	10,372

		Nine Months Ended December 31,
		2013		2012
		(Unaudited)
		(In thousands)
U-Haul lease expenses to SAC Holdings	$	1,965	$	1,971
U-Haul commission expenses to SAC Holdings		37,341		32,531
U-Haul commission expenses to Private Mini		2,379		2,082
	$	41,685	$	36,584

We lease space for marketing company offices, vehicle repair shops and hitch installation centers from subsidiaries of SAC Holdings, 5 SAC and Galaxy. The terms of the leases are similar to the terms of leases for other properties owned by unrelated parties that are leased to us .

At December 31 , 201 3 , subsidiaries of SAC Holdings, 4 SAC, 5 SAC, Galaxy and Private Mini acted as U-Haul independent dealers. The financial and other terms of the dealership contracts with the aforementioned companies and their subsidiaries are substantially identical to the terms of those with our other independent dealers whereby commissions are paid by the Company based upon equipment rental revenues .

These agreements and notes with subsidiaries of SAC Holdings, 4 SAC, 5 SAC, Galaxy and Private Mini, excluding Dealer Agre ements, provided revenues of $23.5 million, expenses of $ 2.0 million and cash flows of $ 36.5 million during the first nine months of fiscal 201 4 . Revenues and commission expenses related to the Dealer Agreements were $ 181.5 million and $ 39.7 million, respe ctively during the first nine months of fiscal 201 4 .

Pursuant to the variable interest entity model under ASC 810 – Consolidation (“ASC 810”), Management determined that the junior notes of SAC Holding Corporation and Private Mini as well as the managemen t agreements with SAC Holdings, Mercury, 4 SAC, 5 SAC, Galaxy, and Private Mini represent potential variable interests for us . Management evaluated whether it should be identified as the primary beneficiary of one or more of these variable interest entity ’s (“VIE’s”) using a two - step approach in which management (i ) identified all other parties that hold interests in the VIE’s, and (ii ) determined if any variable interest holder has the power to direct the activities of the VIE’s that most significantly im pact their economic performance.

Management determined that they do not have a variable interest in the holding entities Mercury, SAC Holding II Corporation, 4 SAC, 5 SAC, or Galaxy based upon management agreements which are with the individual operating e ntities or through the issuance of junior debt; therefore, we are precluded from consolidating these entities.

We have junior debt with the holding entities SAC Holding Corporation and Private Mini which represents a variable interest in each individual e ntity. Though we have certain protective rights within these debt agreements, we have no present influence or control over these holding entities unless their protective rights become exercisable, which management considers unlikely based on their payment history. As a result, we have no basis under ASC 810 to consolidate these entities.

We do not have the power to direct the activities that most significantly impact the economic performance of the individual operating entities which have management agreeme nts with U-Haul. There are no fees or penalties disclosed in the management agreement for termination of the agreement. Through control of the holding entities ’ assets, and its ability and history of making key decisions relating to the entity and its asse ts, Blackwater, and its owner, are the variable interest holder with the power to direct the activities that most significantly impact each of the individual holding entities and the individual operating entities’ performance. As a result, we have no basi s under ASC 810 to consolidate these entities.

We have not provided financial or other support during the first nine months ended December 31, 2013 to any of these entities that we were not previously contractually required to provide. In addition, we curr ently have no plan to provide any financial support to any of these entities in the future. The carrying amount and classification of the assets and liabilities in our balance sheet s that relate to our variable interests in the aforementioned entities are as follows, which approximate the maximum exposure to loss as a result of our involvement with these entities:

Related Party Assets

		December 31,		March 31,
		2013		2013
		(Unaudited)
		(In thousands)
U-Haul notes, receivables and interest from Private Mini	$	72,365	$	68,593
U-Haul notes receivable from SAC Holding Corporation		71,721		72,397
U-Haul interest receivable from SAC Holdings		4,293		14,483
U-Haul receivable from SAC Holdings		18,259		22,336
U-Haul receivable from Mercury		5,472		3,640
Other (a)		(2,072)		586
	$	170,038	$	182,035


(a) Timing difference for intercompany balances with insurance subsidiaries.

1 1 . Consolidating Financial Information by Industry Segment

AMERCO’s three reportable segments are:

• Moving and Storage, comprised of AMERCO, U-Haul, an d Real Estate and the subsidiaries of U-Haul and Real Estate,

• Property and Casualty Insurance, comprised of Rep w est and its subsidiaries and ARCOA, and

• Life Insurance , comprised of Oxford and its subsidiaries.

Management tracks revenues separately, but doe s 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 reportabl e segments. Deferred income taxes are shown as liabilities on the condensed consolidating statements.

The information includes elimination entries necessary to consolidate AMERCO, the parent, with its subsidiaries.

Investments in subsidiaries are accounted for by the parent using the equity method of accounting.

1 1 . Financial Information by Consolidating Industry Segment:

Consolidating balance sheets by industry segment as of December 31, 2013 are as follows:

		Moving & Storage											AMERCO Legal Group
		AMERCO		U-Haul		Real Estate		Eliminations			Moivng & Storage Consolidated		Property & Casualty Insurance (a)		Life Insurance (a)		Eliminations			AMERCO Consolidated
		(Unaudited)
		(In thousands)
Assets:
Cash and cash equivalents	$	476,551	$	92,695	$	2,174	$	–		$	571,420	$	5,601	$	24,594	$	–		$	601,615
Reinsurance recoverables and trade receivables, net		–		29,847		177		–			30,024		162,714		35,686		–			228,424
Inventories, net		–		65,258		–		–			65,258		–		–		–			65,258
Prepaid expenses		–		43,618		726		–			44,344		–		–		–			44,344
Investments, fixed maturities and marketable equities		–		–		–		–			–		188,155		933,966		–			1,122,121
Investments, other		–		–		32,351		–			32,351		49,006		157,991		–			239,348
Deferred policy acquisition costs, net		–		–		–		–			–		–		114,467		–			114,467
Other assets		113		59,742		34,255		–			94,110		1,008		277		–			95,395
Related party assets		1,021,397		117,121		12		(964,556)	(c)		173,974		13,594		492		(18,022)	(c)		170,038
		1,498,061		408,281		69,695		(964,556)			1,011,481		420,078		1,267,473		(18,022)			2,681,010

Investment in subsidiaries		477,063		–		–		(104,285)	(b)		372,778		–		–		(372,778)	(b)		–

Property, plant and equipment, at cost:
Land		–		55,599		337,126		–			392,725		–		–		–			392,725
Buildings and improvements		–		200,961		1,181,221		–			1,382,182		–		–		–			1,382,182
Furniture and equipment		70		308,713		11,804		–			320,587		–		–		–			320,587
Rental trailers and other rental equipment		–		356,416		–		–			356,416		–		–		–			356,416
Rental trucks		–		2,426,453		–		–			2,426,453		–		–		–			2,426,453
		70		3,348,142		1,530,151		–			4,878,363		–		–		–			4,878,363
Less: Accumulated depreciation		(55)		(1,305,591)		(379,618)		–			(1,685,264)		–		–		–			(1,685,264)
Total property, plant and equipment		15		2,042,551		1,150,533		–			3,193,099		–		–		–			3,193,099
Total assets	$	1,975,139	$	2,450,832	$	1,220,228	$	(1,068,841)		$	4,577,358	$	420,078	$	1,267,473	$	(390,800)		$	5,874,109

(a) Balances as of September 30, 2013
(b) Eliminate investment in subsidiaries
(c) Eliminate intercompany receivables and payables

Consolidating balance sheets by industry segment as of December 31, 2013 are as follows:

		Moving & Storage											AMERCO Legal Group
		AMERCO		U-Haul		Real Estate		Eliminations			Moving & Storage Consolidated		Property & Casualty Insurance (a)		Life Insurance (a)		Eliminations			AMERCO Consolidated
		(Unaudited)
		(In thousands)
Liabilities:
Accounts payable and accrued expenses	$	21,567	$	312,826	$	4,671	$	–		$	339,064	$	–	$	12,732	$	–		$	351,796
Notes, loans and leases payable		–		965,308		897,561		–			1,862,869		–		–		–			1,862,869
Policy benefits and losses, claims and loss expenses payable		–		380,940		–		–			380,940		300,351		414,319		–			1,095,610
Liabilities from investment contracts		–		–		–		–			–		–		596,268		–			596,268
Other policyholders' funds and liabilities		–		–		–		–			–		3,118		4,153		–			7,271
Deferred income		–		29,489		–		–			29,489		–		–		–			29,489
Deferred income taxes		457,834		–		–		–			457,834		(32,753)		11,303		–			436,384
Related party liabilities		–		522,754		454,542		(964,556)	(c)		12,740		4,740		542		(18,022)	(c)		–
Total liabilities		479,401		2,211,317		1,356,774		(964,556)			3,082,936		275,456		1,039,317		(18,022)			4,379,687

Stockholders' equity:
Series preferred stock:
Series A preferred stock		–		–		–		–			–		–		–		–			–
Series B preferred stock		–		–		–		–			–		–		–		–			–
Series A common stock		–		–		–		–			–		–		–		–			–
Common stock		10,497		1		1		(2)	(b)		10,497		3,301		2,500		(5,801)	(b)		10,497
Additional paid-in capital		443,051		121,230		147,941		(269,171)	(b)		443,051		91,120		26,271		(117,601)	(b)		442,841
Accumulated other comprehensive income (loss)		(46,192)		(57,600)		–		57,600	(b)		(46,192)		1,542		9,866		(11,408)	(b)		(46,192)
Retained earnings (deficit)		1,766,032		177,200		(284,488)		107,288	(b)		1,766,032		48,659		189,519		(237,968)	(b)		1,766,242
Cost of common shares in treasury, net		(525,653)		–		–		–			(525,653)		–		–		–			(525,653)
Cost of preferred shares in treasury, net		(151,997)		–		–		–			(151,997)		–		–		–			(151,997)
Unearned employee stock ownership plan shares		–		(1,316)		–		–			(1,316)		–		–		–			(1,316)
Total stockholders' equity (deficit)		1,495,738		239,515		(136,546)		(104,285)			1,494,422		144,622		228,156		(372,778)			1,494,422
Total liabilities and stockholders' equity	$	1,975,139	$	2,450,832	$	1,220,228	$	(1,068,841)		$	4,577,358	$	420,078	$	1,267,473	$	(390,800)		$	5,874,109


(a) Balances as of September 30, 2013
(b) Eliminate investment in subsidiaries
(c) Eliminate intercompany receivables and payables

Consolidating balance sheets by industry segment as of March 31, 201 3 are as follows:

		Moving & Storage										AMERCO Legal Group
		AMERCO		U-Haul		Real Estate		Eliminations		Moving & Storage Consolidated		Property & Casualty Insurance (a)		Life Insurance (a)		Eliminations		AMERCO Consolidated

		(In thousands)
Assets:
Cash and cash equivalents	$	327,119	$	98,926	$	1,515	$	–	$	427,560	$	14,120	$	22,064	$	–	$	463,744
Reinsurance recoverables and trade receivables, net		–		43,259		–		–		43,259		186,010		32,520		–		261,789
Inventories, net		–		56,396		–		–		56,396		–		–		–		56,396
Prepaid expenses		22,475		34,956		20		–		57,451		–		–		–		57,451
Investments, fixed maturities and marketable equities		21,228		–		–		–		21,228		160,455		913,655		–		1,095,338
Investments, other		–		100		50,553		–		50,653		65,212		125,900		–		241,765
Deferred policy acquisition costs, net		–		–		–		–