Financial Performance - Net earnings available to common shareholders for Q2 fiscal 2025 were $186.8 million, down from $273.5 million in the same period last year, representing a decrease of 31.7%[1] - Earnings per share for Non-Voting Shares (UHAL.B) were $0.96, compared to $1.40 for the same period in fiscal 2024, a decline of 31.4%[1] - Earnings from operations for the first six months of fiscal 2025 were $608,198 thousand, down from $822,013 thousand in 2024, a decline of 26.0%[14] - Net earnings available to common stockholders decreased to $382,215 thousand for the six months ended September 30, 2024, down from $530,346 thousand in the same period of 2023, representing a decline of approximately 28%[24] - Earnings available to common shareholders for the quarter were $186,798,000, down from $273,508,000, resulting in a decrease of 31.7%[20] - Basic and diluted earnings per share of Common Stock decreased to $0.91 from $1.36, a decline of 33.1% year-over-year[20] - Earnings available to common shareholders for the six months were $382,215,000, down from $530,346,000, a decrease of 28.0%[21] - Basic and diluted earnings per share of Common Stock for the six months decreased to $1.86 from $2.63, a decline of 29.4%[21] Revenue and Occupancy - Self-storage revenues increased by $15.6 million, or 7.5%, year-over-year, with same store occupancy decreasing by 0.8% to 94.1%[3] - Self-storage revenues for the first six months ended September 30, 2024, were $440,256 thousand, an increase from $407,851 thousand in 2023, representing a growth of 7.4%[14] - Total revenues for the quarter ended September 30, 2024, were $1,658,108,000, a slight increase from $1,649,860,000 in the same quarter of 2023, representing a growth of 0.1%[20] - Self-storage revenues increased to $224,519,000 from $208,890,000, reflecting a growth of 7.5% compared to the previous year[20] - The average monthly occupancy rate based on unit count for September 2024 was 80.5%, down from 83.5% in September 2023[16] - The end of September occupancy rate based on unit count was 80.0% in 2024, compared to 83.5% in 2023[16] - The average monthly number of units occupied in self-storage facilities increased to 602 in September 2024 from 529 in September 2023[16] - The average revenue per occupied foot for non-same stores in Q2 2025 is $16.23, with an occupancy rate of 70.0%[17] Expenses and Costs - Total costs and expenses for the quarter rose to $1,356,152,000 from $1,227,505,000, marking an increase of 10.5%[20] - Operating expenses for the six months increased to $1,680,830,000 from $1,598,499,000, reflecting a rise of 5.1%[21] - Total depreciation expense for the first six months of fiscal 2025 was $469,138 thousand, compared to $394,400 thousand in 2024, reflecting an increase of 18.9%[15] Debt and Financial Ratios - Total debt increased to $6,794.5 million as of September 30, 2024, compared to $6,311.7 million at June 30, 2024[11] - Net debt to EBITDA ratio increased to 3.5, up from 3.3 at June 30, 2024[11] - Cash and credit availability in the Moving and Storage segment was $1,774.5 million as of September 30, 2024, down from $1,886.3 million at March 31, 2024[4] Assets and Equity - Total assets increased to $20,126,551 thousand from $19,058,758 thousand as of March 31, 2024, reflecting a growth of approximately 5.6%[19] - Total liabilities rose to $12,607,153 thousand, up from $11,886,313 thousand, indicating an increase of about 6.1%[19] - The company’s retained earnings increased to $7,964,658 thousand from $7,600,090 thousand, reflecting a growth of about 4.8%[19] - The total stockholders' equity rose to $7,519,398 thousand, up from $7,172,445 thousand, indicating an increase of approximately 4.8%[19] Equipment and Development - Approximately 16.8 million net rentable square feet (NRSF) are in development or pending[3] - The company reported net losses on disposals of rental equipment totaling $25,323 thousand for the first six months of fiscal 2025, compared to net losses of $102,464 thousand in 2024[15] - The company adopted a new accounting standard for leases, resulting in approximately $1 billion of property, plant, and equipment being reclassified to Right of Use assets[25] Non-GAAP Measures - The company emphasized that non-GAAP financial measures, such as EBITDA, provide additional tools for investors to evaluate financial conditions, although they should not be considered substitutes for GAAP results[27]

Revenue Performance - Total revenues for the quarter ended September 30, 2024, were $1,658,108 thousand, an increase from $1,649,860 thousand in the same quarter of 2023, representing a growth of approximately 0.14%[7] - Self-moving equipment rental revenues reached $1,087,348 thousand, up from $1,069,405 thousand year-over-year, indicating a growth of about 1.7%[7] - Total revenues for the six months ended September 30, 2024, were $3,206,598, an increase from $3,190,168 for the same period in 2023, representing a growth of 0.5%[8] - Total revenues for the second quarter ended September 30, 2024, were $1,573,643 thousand, compared to $1,565,578 thousand for the same period in 2023, reflecting a growth of approximately 0.4%[69] - For the six months ended September 30, 2024, total revenues reached $3,042,804 thousand, compared to $3,206,598 thousand for the same period in 2023, showing a decline of approximately 5.1%[71] Earnings and Profitability - Net earnings available to common stockholders for the quarter were $186,798 thousand, a decrease from $273,508 thousand in the prior year, reflecting a decline of approximately 31.7%[7] - Basic and diluted earnings per share of common stock were $0.91, down from $1.36 in the same quarter of 2023, representing a decrease of about 33.1%[7] - Net earnings available to common stockholders for the six months ended September 30, 2024, were $382,215, down from $530,346 in the same period of 2023, reflecting a decrease of approximately 28%[8] - Basic and diluted earnings per share for the six months ended September 30, 2024, were $1.86, compared to $2.63 for the same period in 2023, a decline of about 29.4%[8] - Total earnings from operations before equity in earnings of subsidiaries for the second quarter ended September 30, 2024, were $280,695 thousand, down from $401,704 thousand in the same quarter of 2023, indicating a decrease of about 30%[70] Expenses and Costs - Operating expenses for the quarter were $891,073 thousand, compared to $835,258 thousand in the same quarter of 2023, indicating an increase of approximately 6.7%[7] - Operating expenses for the six months ended September 30, 2024, totaled $1,680,830, an increase from $1,598,499 in 2023, marking a rise of 5.1%[8] - Total costs and expenses for the six months ended September 30, 2024, were $2,598,400, compared to $2,368,155 in 2023, an increase of 9.7%[8] Assets and Liabilities - Total assets as of September 30, 2024, were $20,126,551 thousand, an increase from $19,058,758 thousand as of March 31, 2024, reflecting a growth of approximately 5.6%[5] - Total liabilities increased to $12,607,153 thousand from $11,886,313 thousand, marking an increase of about 6.1%[5] - Total stockholders' equity increased to $7,519,398 thousand from $7,172,445 thousand, representing a growth of about 4.8%[5] - The total notes, loans, and finance leases payable, net, amounted to $6.76 billion as of September 30, 2024, an increase from $6.27 billion as of March 31, 2024[39] Investment Income - The company reported net investment and interest income of $37,794 thousand, down from $64,738 thousand year-over-year, reflecting a decline of approximately 41.7%[7] - The company reported net investment and interest income of $74,919 thousand for the six months ended September 30, 2024, down from $129,330 thousand in the same period of 2023, a decrease of about 42%[8] Cash Flow - Cash provided by operating activities was $984,278 thousand, compared to $937,431 thousand in the prior year, indicating an increase of about 5%[16] - Net cash used in investing activities totaled $1,597,867 thousand, up from $1,086,326 thousand in the previous year, reflecting a significant increase of approximately 47%[16] - Net cash provided by financing activities was $510,585 thousand, compared to $233,704 thousand in the same period last year, showing an increase of about 118%[16] Dividends - The company declared dividends of $0.05 per share for Series N Non-Voting Common Stock, totaling $8,823 for the period[12] - Dividends declared for the first six months of fiscal years 2025 and 2024 were $0.05 per share in August and June 2024, compared to $0.04 per share in the same months of 2023[53] Foreign Currency and Other Comprehensive Income - The company experienced a foreign currency translation loss of $240,831 as of September 30, 2024[12] - The accumulated other comprehensive loss as of September 30, 2024, totals $240,831 thousand, with significant contributions from foreign currency translation losses and unrealized net losses on investments[51] Taxation - The effective tax rate for the quarter ended September 30, 2024, was 24.1%, compared to 23.6% for the same quarter in 2023[95] - Income taxes paid in cash for the quarter ended September 30, 2024, amounted to $53.9 million, up from $25.3 million for the same quarter in 2023[95] Segment Information - The company has three reportable segments: Moving and Storage, Property and Casualty Insurance, and Life Insurance[18] - Total assets by operating segment as of September 30, 2024, included $17,164,316 thousand for Moving & Storage Consolidated, $516,162 thousand for Property & Casualty Insurance, and $3,058,427 thousand for Life Insurance[72] Legal and Compliance - The company is involved in various litigation matters, but none are expected to have a material effect on its financial position[61] - Compliance with environmental laws is not expected to materially affect the company's financial position or cash flows[60]

Financial Performance - Net earnings available to common shareholders for Q1 fiscal 2025 were $195.4 million, down from $256.8 million in the same period last year, with earnings per share for Non-Voting Shares at $1.00 compared to $1.31[1] - Earnings available to common stockholders decreased to $195,417 from $256,838, reflecting a decline of 23.87%[17] - Basic and diluted earnings per share of Common Stock were $0.95, down from $1.27, a decrease of 25.20%[17] - The company reported a pretax earnings of $256,392, down from $338,695, a decrease of 24.26%[17] Revenue and Growth - Total revenues for the quarter ended June 30, 2024, were $1,548,490, an increase from $1,540,308 in the same quarter of 2023, representing a growth of 0.08%[17] - Self-storage revenues increased by $16.8 million, or 8.4%, year-over-year, with total portfolio occupied rooms rising by 31,582, or 5.6%[2] - Self-moving equipment rental revenues rose by $15.1 million, or 1.5%, marking the first year-over-year improvement in eight quarters[3] - Moving and Storage Other Revenue increased by $9.0 million, or 7.3%, driven by growth in the U-Box product offering[3] - Self-moving equipment rental revenues reached $1,014,332, up from $999,206, indicating a growth of 1.13% year-over-year[17] Expenses and Costs - Total costs and expenses rose to $1,242,248 compared to $1,140,650, an increase of 8.93%[17] - Operating expenses increased to $789,757 from $763,241, marking a rise of 3.61%[17] - Total depreciation expense increased to $224.3 million in Q1 fiscal 2025, up from $193.5 million in the same quarter last year[12] - Fleet maintenance and repair costs declined by $20.8 million compared to the previous year[4] Assets and Liabilities - Total assets as of June 30, 2024, amounted to $19,305,427 thousand, compared to $19,058,758 thousand as of March 31, 2024, showing an increase of 1.3%[16] - Total liabilities rose to $11,954,986 thousand from $11,886,313 thousand, an increase of 0.6%[16] - Cash and cash equivalents decreased to $1,153,161 thousand from $1,534,544 thousand, a decline of 25.0%[16] - Trade receivables increased to $253,638 thousand from $215,908 thousand, representing a growth of 17.5%[16] - Retained earnings increased to $7,786,683 thousand from $7,600,090 thousand, reflecting a growth of 2.4%[16] Occupancy and Storage Metrics - As of June 30, 2024, the company reported a total of 748 self-storage units, an increase from 683 units in 2023, representing a growth of 9.5%[13] - The average monthly occupancy rate decreased to 80.0% in 2024 from 82.8% in 2023, indicating a decline of 2.8 percentage points[13] - The end of June occupancy rate also fell to 81.0% in 2024 from 83.9% in 2023, a decrease of 2.9 percentage points[13] - The total rentable square footage increased to 63,586 thousand square feet in 2024 from 57,530 thousand square feet in 2023, reflecting a growth of 10.5%[13] - The average annual revenue per square foot was reported at $16.91, with an occupancy rate of 79.9% across 1,035 stores[14] Dividends and Shareholder Returns - The company declared a cash dividend of $0.05 per share on June 5, 2024, paid on June 28, 2024[5] - Non-Voting Common Stock dividends declared increased to $8,824 from $7,059, a rise of 24.98%[19] EBITDA and Operational Metrics - Moving and Storage EBITDA for June 30, 2024, is $831,802,000, a decrease from $896,140,000 for March 31, 2024[23] - Total EBITDA for the period is $1,584,461,000, showing a slight increase from $1,567,985,000 in the previous quarter[23] - Depreciation for June 30, 2024, is reported at $848,727,000, up from $817,889,000 in the prior quarter[23] - Net gains on disposals for June 30, 2024, are $(106,065,000), an improvement from $(153,958,000) in the previous quarter[23] - Net losses on disposal of real estate for June 30, 2024, are $9,997,000, compared to $7,914,000 in the prior quarter[23] - Depreciation, net of gains and losses on disposals, is $752,659,000 for June 30, 2024, up from $671,845,000 in the previous quarter[23] - The TTM EBITDA as of December 31, 2023, is $980,169,000, indicating a trend in performance[23] - The EBITDA for September 30, 2023, was $1,683,912,000, showing a decline from $1,789,024,000 for June 30, 2023[23]

Revenue Performance - Self-moving equipment rental revenues increased by $15.1 million to $1,014.3 million in Q1 FY2025 compared to Q1 FY2024[105] - Self-storage revenues rose by $16.8 million to $215.7 million in Q1 FY2025, with a 5.6% increase in average occupied units[105] - Consolidated revenue for Q1 FY2025 was $1,548.5 million, a slight increase from $1,540.3 million in Q1 FY2024[105] - Moving and Storage revenue for the first quarter of fiscal 2025 was $1,469.2 million, compared to $1,459.5 million in the first quarter of fiscal 2024, reflecting a slight increase[109] - Self-moving equipment rental revenues increased by $15.1 million in the first quarter of fiscal 2025, with an increase in transactions and revenue per transaction[109] - Self-storage revenues rose by $16.8 million in the first quarter of fiscal 2025, with a 5.6% increase in the average monthly number of occupied units[109] - Total revenues for the quarter ended June 30, 2024, were $1,548,490, an increase from $1,540,308 in the same quarter last year, representing a growth of approximately 0.5%[136] Earnings and Profitability - Earnings from operations decreased to $306.2 million in Q1 FY2025 from $399.7 million in Q1 FY2024[107] - Basic and diluted earnings per share for Q1 FY2025 were $0.95, down from $1.27 in Q1 FY2024[107] - Basic and diluted earnings per share for fiscal 2025 were $1.00, down from $1.31 in fiscal 2024[108] - Net earnings available to common stockholders for the quarter were $195,417, consistent with the previous year's figure of $256,838, showing a decline of approximately 23.8%[136][138] - The company reported earnings from operations before equity in earnings of subsidiaries at $306,242, compared to $399,658 in the same quarter last year, a decrease of about 23.3%[136][138] Costs and Expenses - Total costs and expenses increased by $101.6 million in Q1 FY2025 compared to Q1 FY2024[107] - Operating expenses totaled $789,757, up from $763,241 in the previous year, reflecting an increase of about 3.5%[136] - The total costs and expenses for the quarter were $1,242,248, compared to $1,140,650 in the same quarter last year, reflecting an increase of about 8.9%[136][138] Cash Flow and Investments - Cash and cash equivalents as of June 30, 2024, totaled $1,153.2 million, down from $1,534.5 million as of March 31, 2024[117] - Net cash provided by operating activities decreased by $11.8 million in the first three months of fiscal 2025 compared to the same period in fiscal 2024[117] - Net cash used in investing activities increased by $514.7 million in the first three months of fiscal 2025, with property, plant, and equipment purchases rising by $189.6 million[117] - Cash provided by operating activities totaled $453,903 thousand, with a significant contribution from the Moving & Storage segment at $435,628 thousand[140] - The company reported a net cash used by investing activities of $(803,318) thousand, primarily due to purchases of property, plant, and equipment totaling $(963,163) thousand[141] Insurance Segment Performance - Life insurance premiums decreased by $2.4 million to $20.7 million in Q1 FY2025 compared to Q1 FY2024[105] - Life insurance premiums for the quarter were $20,740, down from $23,131 in the previous year, indicating a decline of approximately 10.4%[136][138] - Life Insurance reported net cash provided by operating activities of $14.8 million for the first quarter of fiscal 2025, an increase from $10.2 million in the same quarter of fiscal 2024[123] - Life Insurance aims to expand its presence in the senior market through new product offerings and business acquisition opportunities[128] Financial Position - Total assets of U-Haul Holding Company as of June 30, 2024, amounted to $27,045,445,000[129] - Total liabilities were reported at $9,100,235,000, with accounts payable and accrued expenses at $833,296,000[130] - Stockholders' equity stood at $7,346,958,000, with retained earnings of $7,786,473,000[130] - The company reported $1,727,668,000 in property, plant, and equipment at cost, with total property, plant, and equipment net at $19,305,400,000[129] Future Plans and Strategies - U-Haul plans to reinvest approximately $1,090 million in its rental equipment fleet during fiscal 2025, with $395.1 million already invested in the first three months[118] - The company anticipates increased spending on acquisitions and new development in fiscal 2025, particularly in the storage business[127] - The company plans to focus on expanding its self-storage services and enhancing its technology offerings in the upcoming quarters[136] - The company is exploring potential acquisitions to strengthen its market position and drive future growth[136] - The company aims to expand its Life Insurance segment in the senior market and grow its agency force[152] Market Risks - The company is exposed to financial market risks, including changes in interest rates and currency exchange rates, and utilizes derivative financial instruments to mitigate these risks[147] - As of June 30, 2024, the company had $780.7 million in variable rate debt obligations, with $485.0 million not fixed through interest rate swaps[148] - A 100 basis point increase in the Secured Overnight Funding Rate (SOFR) would decrease future earnings and cash flows by $4.9 million annually[148] - The company's insurance subsidiaries' fixed income investment portfolios are exposed to interest rate risk, impacting asset allocation strategies[148]

Equipment Rental and Operations - As of March 31, 2024, U-Haul had nearly 21,000 independent equipment rental dealers, generating just under half of all U-Move rental revenue through this network[85] - The cost of acquiring new rental trucks has significantly increased in recent years, which could adversely affect the ability to rotate new equipment into the fleet[84] - U-Haul's reliance on a limited number of manufacturers for rental trucks poses risks related to supply chain issues and financial difficulties faced by these manufacturers[83] - The truck rental industry is highly competitive, with significant national, regional, and local competitors, which may affect pricing and rental volume[101] - Regulatory pressures may require U-Haul to phase out certain internal combustion engine vehicles and replace them with zero-emission vehicles, impacting operational costs and infrastructure[87] - U-Haul has made progress on initiatives like TruckShare 24/7 and alternative fuel networks, but adapting to regulatory changes favoring electric vehicles remains a challenge[90] Financial Position and Debt - As of March 31, 2024, the company had total debt outstanding of $6,304.0 million and operating lease liabilities of $55.0 million[106] - The company is highly leveraged, which may require a significant portion of cash flows from operations to be allocated to debt service and lease payments[107] - The company has $749.5 million of variable rate debt obligations, with $451.7 million not fixed through interest rate swaps[254] - If the Secured Overnight Funding Rate ("SOFR") were to increase by 100 basis points, the increase in interest expense on the variable rate debt would decrease future earnings and cash flows by $4.5 million annually[254] Insurance and Risk Management - U-Haul's largest exposure to a single reinsurer was $22.1 million, with total reinsurance recoverables reported at $0.4 million and reserves at $36.2 million as of the end of fiscal year 2024[100] - Oxford's derivative hedges had a net market value of $10.5 million with notional amounts of $526.4 million as of the end of fiscal year 2024[100] - Cybersecurity incidents have occurred in the past, with the company maintaining insurance coverage for various risks, but future incidents could have a material impact on operations[98] Environmental and Regulatory Compliance - The company is subject to various environmental laws and regulations, which could lead to future liabilities affecting operations[114] - The company has implemented a remediation plan for hazardous substances on some of its real estate, indicating ongoing compliance efforts with environmental regulations[114] Tax and Corporate Governance - Changes in U.S. tax laws, including potential increases to the corporate income tax rate, could adversely impact the company's financial position and results of operations[123] - The company relies on its "controlled company" status, which allows it to nominate directors without a majority of independent directors[110] Market and Investment Risks - The trading prices of the company's Voting Common Stock and Non-Voting Common Stock may be volatile, influenced by various market factors[112] - The fair value of the fixed maturity portfolio is sensitive to interest rate changes, with a decrease to $2,324,207 thousand at +100bps in 2024 compared to $2,578,654 thousand in 2023[257] - Interest rate risk is a significant factor for the company's fixed income investment portfolios, impacting future investment strategies[255] - The company’s actuaries play a crucial role in assessing the sensitivity of fixed income securities to interest rate changes[255] Revenue and Foreign Exposure - Approximately 5.1% of the company's revenue was generated in Canada for both fiscal 2024 and 2023, indicating stable foreign revenue exposure[261] - The company does not hedge foreign currency risk as the exposure is not considered material, even with a potential 10% change in the U.S. dollar relative to the Canadian dollar[261] Derivative and Investment Management - The net market value of derivative hedges increased to $10.5 million in 2024 from $4.3 million in 2023, with notional amounts of $526.4 million and $465.7 million respectively[259] - The company employs call options as hedges against policyholder obligations, but these do not qualify for hedge accounting under GAAP[260] - The change in fair value of call options is included in net investment and interest income, reflecting gains or losses recognized at expiration[260] - The company’s asset and liability management involves estimating cash flow patterns of existing liabilities to determine duration and asset allocation strategies[255]

Financial Performance - For the fiscal year ended March 31, 2024, net earnings available to shareholders were $628.7 million, a decrease of 32.1% from $924.5 million in the previous year[1]. - For the fourth quarter of fiscal 2024, the company reported net losses available to shareholders of ($0.9) million, compared to net earnings of $37.4 million for the same period last year[2]. - Earnings from operations for the quarter were $41,366,000, a significant decline of 62.5% from $110,121,000 year-over-year[21]. - Net earnings available to common shareholders for the fiscal year were $628,707,000, down 31.9% from $924,472,000 in the previous year[22]. - Basic and diluted earnings per share of Common Stock for the fiscal year were $3.04, a decrease from $5.54 in 2023[22]. Revenue Trends - Self-moving equipment rental revenues decreased by $10.0 million, or 1%, in Q4 2024 compared to Q4 2023, and for the full year, revenues decreased by $253.2 million, or 7%[3]. - Self-storage revenues increased by $17.5 million, or 9%, in Q4 2024 compared to Q4 2023, and for the full year, revenues increased by $86.6 million, or 12%[3]. - Total revenues for the quarter ended March 31, 2024, were $1,179,170,000, a decrease of 0.6% from $1,188,651,000 in the same quarter of 2023[21]. - For the fiscal year ended March 31, 2024, total revenues were $5,625,674,000, a decrease of 4.1% from $5,864,691,000 in 2023[22]. Expenses and Costs - Total costs and expenses for the quarter were $1,137,804,000, an increase of 5.5% from $1,078,530,000 in the same quarter of 2023[21]. - Total depreciation expense for Q4 FY 2024 was $213,652,000, an increase of 12.6% from $189,704,000 in Q4 FY 2023[14]. - Total depreciation expense for the year ended March 31, 2024, was $817,889,000, up 11.4% from $733,879,000 in the previous year[15]. - Depreciation expense increased to $817,889 thousand for the twelve months ending March 31, 2024, compared to $733,879 thousand for the same period in 2023, marking an increase of 11.5%[32]. Assets and Liabilities - Total assets as of March 31, 2024, were $19,058,758,000, an increase from $18,100,734,000 in the previous year, reflecting a growth of 5.3%[20]. - Total liabilities increased to $11,886,313,000 as of March 31, 2024, compared to $11,596,543,000 in the prior year, marking a rise of 2.5%[20]. - Total property, plant and equipment, net increased to $13,134,652 thousand as of March 31, 2024, up from $11,824,853 thousand in the previous year, representing a growth of 11.1%[30]. Debt and Cash Flow - Total debt as of March 31, 2024, was $6,304.0 million, a decrease from $6,471.4 million as of March 31, 2023[13]. - Cash and credit availability at the Moving and Storage operating segment was $1,886.3 million as of March 31, 2024, down from $2,499.2 million in the previous year[7]. - The net debt to EBITDA ratio increased to 3.1 as of March 31, 2024, compared to 2.2 a year earlier[13]. - The company reported cash and cash equivalents of $1,534,544,000 as of March 31, 2024, down from $2,060,524,000 a year earlier, indicating a decrease of 25.5%[20]. Operational Metrics - The average number of occupied self-storage units increased by 31,000 units, or 6%, during Q4 2024 compared to the same period last year[3]. - The self-storage unit count increased to 728 as of March 31, 2024, from 673 a year earlier, representing an 8.2% growth[15]. - Average monthly occupancy rate based on unit count for FY 2024 was 82.1%, slightly down from 83.4% in FY 2023[15]. - The end of period occupancy rate based on unit count was 79.3% for Q4 FY 2024, down from 81.2% in Q4 FY 2023[15]. - The average revenue per occupied square foot for Q4 FY 2024 was $16.60, compared to $15.99 in Q4 FY 2023, showing an increase of 3.8%[16]. Adjustments and Reclassifications - The company adjusted its earnings from operations for the previous quarters, indicating a reclassification of Moving and Storage interest income as Other interest income[31].

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements of U-Haul Holding Company, including balance sheets, statements of operations, comprehensive income (loss), changes in stockholders' equity, and cash flows for the periods ended December 31, 2023, and March 31, 2023, along with comparative data for 2022. It also includes detailed notes explaining the basis of presentation, accounting policies, and specific financial line items [Consolidated Balance Sheets](index=3&type=section&id=a)%29%20Consolidated%20Balance%20Sheets%20as%20of%20December%2031%2C%202023%20and%20March%2031%2C%202023%20%28unaudited%29) Consolidated Balance Sheet Highlights (In thousands) | Metric | Dec 31, 2023 | Mar 31, 2023 | | :----------------------------------- | :----------- | :----------- | | Total assets | $19,002,576 | $18,100,734 | | Total liabilities | $11,914,775 | $11,596,543 | | Total stockholders' equity | $7,087,801 | $6,504,191 | - Total assets increased by **$901.8 million** from March 31, 2023, to December 31, 2023, primarily driven by an increase in property, plant and equipment, net[9](index=9&type=chunk) - Total stockholders' equity increased by **$583.6 million**, reflecting an increase in retained earnings[9](index=9&type=chunk) [Consolidated Statements of Operations (Quarterly)](index=4&type=section&id=b)%29%20Consolidated%20Statements%20of%20Operations%20for%20the%20Quarters%20Ended%20December%2031%2C%202023%20and%202022%20%28unaudited%29) Quarterly Consolidated Statements of Operations Highlights (In thousands, except per share amounts) | Metric | Q3 2023 | Q3 2022 | Change (YoY) | | :----------------------------------- | :------ | :------ | :----------- | | Total revenues | $1,339,514 | $1,375,336 | -$35,822 | | Earnings from operations | $197,588 | $320,011 | -$122,423 | | Pretax earnings | $129,773 | $260,616 | -$130,843 | | Net earnings available to common stockholders | $99,224 | $198,852 | -$99,628 | | Basic and diluted EPS (Common Stock) | $0.46 | $0.98 | -$0.52 | | Basic and diluted EPS (Series N Non-Voting Common Stock) | $0.51 | $1.02 | -$0.51 | - Total revenues decreased by **$35.8 million**, primarily due to a **$59.0 million** decrease in self-moving equipment rental revenues, partially offset by a **$20.0 million** increase in self-storage revenues[10](index=10&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk) - Net earnings available to common stockholders decreased by **$99.6 million**, or **50.1%**, year-over-year[10](index=10&type=chunk) [Consolidated Statements of Operations (Nine Months)](index=5&type=section&id=c)%29%20Consolidated%20Statements%20of%20Operations%20for%20the%20Nine%20Months%20Ended%20December%2031%2C%202023%20and%202022%20%28unaudited%29) Nine Months Consolidated Statements of Operations Highlights (In thousands, except per share amounts) | Metric | 9M 2023 | 9M 2022 | Change (YoY) | | :----------------------------------- | :------ | :------ | :----------- | | Total revenues | $4,529,682 | $4,676,040 | -$146,358 | | Earnings from operations | $1,019,601 | $1,335,459 | -$315,858 | | Pretax earnings | $826,516 | $1,167,505 | -$340,989 | | Net earnings available to common stockholders | $629,570 | $887,063 | -$257,493 | | Basic and diluted EPS (Common Stock) | $3.09 | $5.39 | -$2.30 | | Basic and diluted EPS (Series N Non-Voting Common Stock) | $3.22 | $4.43 | -$1.21 | - Total revenues for the nine months decreased by **$146.4 million**, primarily due to a **$243.2 million** decrease in self-moving equipment rental revenues, partially offset by a **$69.1 million** increase in self-storage revenues[13](index=13&type=chunk)[245](index=245&type=chunk)[246](index=246&type=chunk) - Net earnings available to common stockholders decreased by **$257.5 million**, or **29.0%**, for the nine months ended December 31, 2023[13](index=13&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=d)%29%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29%20for%20the%20Quarters%20and%20Nine%20Months%20Ended%20December%2031%2C%202023%20and%202022%20%28unaudited%29) Comprehensive Income (Loss) Highlights (In thousands) | Metric | Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | | :----------------------------------- | :------ | :------ | :------ | :------ | | Net earnings | $99,224 | $198,852 | $629,570 | $887,063 | | Total other comprehensive income (loss) | -$32,978 | -$60,239 | -$23,019 | -$298,744 | | Total comprehensive income (loss) | $66,246 | $138,613 | $606,551 | $588,319 | - Total other comprehensive income (loss) for the nine months ended December 31, 2023, improved significantly to a loss of **$23.0 million** compared to a loss of **$298.7 million** in the prior year, primarily due to a smaller unrealized net loss on investments[15](index=15&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity (Quarterly)](index=7&type=section&id=e)%29%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity%20for%20the%20Quarters%20Ended%20December%2031%2C%202023%20and%202022%20%28unaudited%29) Quarterly Stockholders' Equity Changes (In thousands) | Metric | Dec 31, 2023 | Sep 30, 2023 | Dec 31, 2022 | Sep 30, 2022 | | :----------------------------------- | :----------- | :----------- | :----------- | :----------- | | Total stockholders' equity (End of Period) | $7,087,801 | $7,030,378 | $6,455,727 | $6,324,173 | | Net earnings | $99,224 | N/A | $198,852 | N/A | | Series N Non-Voting Common Stock dividends | -$8,823 | N/A | -$7,059 | N/A | | Net activity (Quarter) | $57,423 | N/A | $131,554 | N/A | - Total stockholders' equity increased from **$7,030.4 million** at September 30, 2023, to **$7,087.8 million** at December 31, 2023, driven by net earnings partially offset by other comprehensive losses and dividends[17](index=17&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity (Nine Months)](index=8&type=section&id=f)%29%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity%20for%20the%20Nine%20Months%20Ended%20December%2031%2C%202023%20and%202022%20%28unaudited%29) Nine Months Stockholders' Equity Changes (In thousands) | Metric | Dec 31, 2023 | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | | :----------------------------------- | :----------- | :----------- | :----------- | :----------- | | Total stockholders' equity (End of Period) | $7,087,801 | $6,504,191 | $6,455,727 | $5,894,075 | | Net earnings | $629,570 | N/A | $887,063 | N/A | | Series N Non-Voting Common Stock dividends | -$22,941 | N/A | -$7,059 | N/A | | Common stock dividends | N/A | N/A | -$19,608 | N/A | | Net activity (Nine Months) | $583,610 | N/A | $561,652 | N/A | - Total stockholders' equity increased by **$583.6 million** for the nine months ended December 31, 2023, primarily due to net earnings of **$629.6 million**, partially offset by other comprehensive losses and dividends[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=g)%29%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Nine%20Months%20Ended%20December%2031%2C%202023%20and%202022%20%28unaudited%29) Nine Months Consolidated Cash Flow Highlights (In thousands) | Metric | 9M 2023 | 9M 2022 | Change (YoY) | | :----------------------------------- | :------ | :------ | :----------- | | Net cash provided by operating activities | $1,240,043 | $1,515,680 | -$275,637 | | Net cash used in investing activities | -$1,709,893 | -$1,871,770 | +$161,877 | | Net cash provided by financing activities | $211,234 | $175,278 | +$35,956 | | Decrease in cash and cash equivalents | -$254,548 | -$193,518 | -$61,030 | | Cash and cash equivalents at end of period | $1,805,976 | $2,510,619 | -$704,643 | - Net cash provided by operating activities decreased by **$275.6 million**, primarily due to lower operating profits and increased claim payments at Moving and Storage[20](index=20&type=chunk)[276](index=276&type=chunk) - Net cash used in investing activities decreased by **$161.9 million**, driven by a decrease in purchases of fixed maturity investments and an increase in cash from short-term Treasury notes for insurance subsidiaries, despite increased property, plant, and equipment purchases[20](index=20&type=chunk)[277](index=277&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=h)%29%20Notes%20to%20Consolidated%20Financial%20Statements%20%28unaudited%29) [Note 1. Basis of Presentation](index=10&type=section&id=1.%20Basis%20of%20Presentation) - The interim consolidated financial statements are unaudited and prepared in conformity with GAAP, reflecting all necessary recurring adjustments. They should be read in conjunction with the Annual Report on Form 10-K for the fiscal year ended March 31, 2023[24](index=24&type=chunk) - The Company has three reportable segments: Moving and Storage, Property and Casualty Insurance, and Life Insurance[31](index=31&type=chunk) - The Company adopted ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, effective April 1, 2023, using a modified retrospective method[24](index=24&type=chunk)[35](index=35&type=chunk)[159](index=159&type=chunk) [Note 2. Earnings per Share](index=13&type=section&id=2.%20Earnings%20per%20Share) - Earnings per share are calculated using the two-class method, allocating undistributed earnings to Voting Common Stock (**10%**) and Series N Non-Voting Common Stock (**90%**) based on weighted average shares outstanding[48](index=48&type=chunk) Basic and Diluted EPS (Quarterly, in thousands, except per share amounts) | Stock Type | Q3 2023 EPS | Q3 2022 EPS | | :----------------------------------- | :---------- | :---------- | | Voting Common Stock | $0.46 | $0.98 | | Series N Non-Voting Common Stock | $0.51 | $1.02 | Basic and Diluted EPS (Nine Months, in thousands, except per share amounts) | Stock Type | 9M 2023 EPS | 9M 2022 EPS | | :----------------------------------- | :---------- | :---------- | | Voting Common Stock | $3.09 | $5.39 | | Series N Non-Voting Common Stock | $3.22 | $4.43 | [Note 3. Investments](index=15&type=section&id=3.%20Investments) Available-for-Sale Investments Fair Value (In thousands) | Category | Dec 31, 2023 | Mar 31, 2023 | | :----------------------------------- | :----------- | :----------- | | U.S. treasury securities and government obligations | $308,945 | $344,676 | | Corporate securities | $1,694,658 | $1,869,233 | | Mortgage-backed securities | $272,022 | $317,392 | | Total available-for-sale investments | $2,474,624 | $2,709,037 | - The Company recorded a net impairment charge of **$0.4 million** for the nine months ended December 31, 2023, compared to **$2.2 million** in the prior year, related to credit losses on available-for-sale debt securities[62](index=62&type=chunk) Other Investments Carrying Value (In thousands) | Category | Dec 31, 2023 | Mar 31, 2023 | | :----------------------------------- | :----------- | :----------- | | Mortgage loans, net | $567,784 | $466,531 | | Short-term investments | $993 | $15,921 | | Real estate | $65,836 | $72,178 | | Total other investments | $660,253 | $575,540 | [Note 4. Notes, Loans and Finance Leases Payable, net](index=18&type=section&id=4.%20Notes%2C%20Loans%20and%20Finance%20Leases%20Payable%2C%20net) Long Term Debt (In thousands) | Category | Dec 31, 2023 | Mar 31, 2023 | | :----------------------------------- | :----------- | :----------- | | Senior mortgages | $2,435,443 | $2,371,231 | | Finance liabilities (rental equipment) | $1,660,443 | $1,255,763 | | Private placements | $1,200,000 | $1,200,000 | | Total notes, loans and finance leases payable, net | $6,437,309 | $6,108,042 | - Total notes, loans and finance leases payable, net, increased by **$329.3 million** from March 31, 2023, to December 31, 2023[66](index=66&type=chunk) Interest Expense (In thousands) | Period | 2023 | 2022 | | :----------------------------------- | :------ | :------ | | Quarter ended Dec 31 | $67,450 | $59,041 | | Nine months ended Dec 31 | $191,991 | $166,033 | - Interest expense increased due to a higher average cost of debt, with the weighted average interest rate during the quarter ended December 31, 2023, at **6.64% compared to 4.68%** in the prior year[70](index=70&type=chunk)[71](index=71&type=chunk) [Note 5. Derivatives](index=20&type=section&id=5.%20Derivatives) - The Company uses interest rate swap agreements as cash flow hedges to manage exposure to changes in market interest rates, effectively fixing interest payments on certain SOFR indexed variable rate debt through July 2032[74](index=74&type=chunk) Derivative Fair Values (In thousands) | Category | Dec 31, 2023 | Mar 31, 2023 | | :----------------------------------- | :----------- | :----------- | | Interest rate swaps (Assets) | $5,086 | $5,311 | | Equity market contracts (Assets) | $8,795 | $4,295 | - Economic hedges are used for equity market exposure to indexed annuity products, with changes in fair value recognized in net investment and interest income[76](index=76&type=chunk)[78](index=78&type=chunk)[320](index=320&type=chunk) [Note 6. Accumulated Other Comprehensive Loss](index=21&type=section&id=6.%20Accumulated%20Other%20Comprehensive%20Loss) Accumulated Other Comprehensive Loss (AOCI) (In thousands) | Component | Dec 31, 2023 | Sep 30, 2023 | Mar 31, 2023 | | :----------------------------------- | :----------- | :----------- | :----------- | | Foreign currency translation | -$53,651 | -$58,919 | -$56,539 | | Unrealized net gains (losses) on investments and impact of LFPB discount rates | -$258,478 | -$225,693 | -$232,740 | | Fair value of cash flow hedges | $3,838 | $9,299 | $4,007 | | Total AOCI | -$308,642 | -$275,664 | -$285,623 | - AOCI increased to a loss of **$308.6 million** as of December 31, 2023, from **$285.6 million** at March 31, 2023, primarily due to increased unrealized net losses on investments and the impact of LFPB discount rates[80](index=80&type=chunk) [Note 7. Stockholders' Equity](index=22&type=section&id=7.%20Stockholders%27%20Equity) Non-Voting Common Stock Dividends Declared | Declared Date | Per Share Amount | | :----------------------------------- | :--------------- | | December 6, 2023 | $0.05 | | August 17, 2023 | $0.04 | | June 7, 2023 | $0.04 | | December 7, 2022 | $0.04 | Common Stock Dividends Declared | Declared Date | Per Share Amount | | :----------------------------------- | :--------------- | | August 18, 2022 | $0.50 | | April 6, 2022 | $0.50 | - No awards were issued under the 2016 AMERCO Stock Option Plan as of December 31, 2023[83](index=83&type=chunk) [Note 8. Leases](index=23&type=section&id=8.%20Leases) Right-of-Use (ROU) Assets, Net (In thousands) | Category | Dec 31, 2023 | Mar 31, 2023 | | :----------------------------------- | :----------- | :----------- | | Finance ROU assets, net | $326,244 | $474,765 | | Operating ROU assets, net | $65,361 | $58,917 | | Total ROU assets, net | $391,605 | $533,682 | - Finance lease liabilities decreased to **$137.0 million** as of December 31, 2023, from **$223.2 million** at March 31, 2023[85](index=85&type=chunk) Weighted Average Lease Terms and Discount Rates | Lease Type | Dec 31, 2023 (Years) | Mar 31, 2023 (Years) | Dec 31, 2023 (Rate) | Mar 31, 2023 (Rate) | | :----------------------------------- | :------------------- | :------------------- | :------------------ | :------------------ | | Finance leases | 1 | 2 | **4.1%** | **3.8%** | | Operating leases | 19.1 | 19.2 | **4.6%** | **4.7%** | [Note 9. Contingencies](index=24&type=section&id=9.%20Contingencies) - A cybersecurity incident occurred between November 5, 2021, and April 8, 2022, where customer contracts containing names, dates of birth, and driver's license numbers were accessed. Class action lawsuits have been consolidated, with most claims dismissed except those under the California Consumer Privacy Act[89](index=89&type=chunk)[90](index=90&type=chunk) - The Company is subject to environmental regulations and has remedial plans in place for hazardous substances on some properties, not expecting a material adverse effect on financial position[92](index=92&type=chunk)[93](index=93&type=chunk) - Other litigation and claims arising from normal business operations are not expected to have a material effect on the Company's financial position or results of operations[94](index=94&type=chunk) [Note 10. Related Party Transactions](index=25&type=section&id=10.%20Related%20Party%20Transactions) - The Company engages in related party transactions with entities substantially controlled by Blackwater Investments, Inc., which is owned by significant stockholders and trusts associated with the Chairman of the Board[95](index=95&type=chunk)[96](index=96&type=chunk) Related Party Revenue (In thousands) | Source | Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | | :----------------------------------- | :------ | :------ | :------ | :------ | | U-Haul management fee revenue from Blackwater | $7,135 | $7,170 | $22,585 | $22,726 | | U-Haul management fee revenue from Mercury | $3,003 | $2,910 | $5,997 | $5,770 | | Total | $10,138 | $10,080 | $28,582 | $28,496 | Related Party Costs and Expenses (In thousands) | Category | Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | | :----------------------------------- | :------ | :------ | :------ | :------ | | U-Haul lease expenses to Blackwater | $604 | $604 | $1,812 | $1,812 | | U-Haul printing expenses to Blackwater | $877 | — | $2,194 | — | | U-Haul commission expenses to Blackwater | $18,946 | $20,016 | $65,684 | $71,283 | | Total | $20,427 | $20,620 | $69,690 | $73,095 | [Note 11. Reportable Segment Information](index=27&type=section&id=11.%20Reportable%20Segment%20Information%3A) - The Company operates through three reportable segments: Moving and Storage, Property and Casualty Insurance, and Life Insurance[109](index=109&type=chunk) Quarterly Segment Revenues and Earnings from Operations (In thousands) | Segment | Q3 2023 Revenues | Q3 2023 Earnings | Q3 2022 Revenues | Q3 2022 Earnings | | :----------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Moving & Storage | $1,260,677 | $180,467 | $1,296,407 | $304,717 | | Property & Casualty Insurance | $29,303 | $9,421 | $28,466 | $10,846 | | Life Insurance | $52,715 | $8,075 | $52,962 | $4,821 | | Consolidated Total | $1,339,514 | $197,588 | $1,375,336 | $320,011 | Nine Months Segment Revenues and Earnings from Operations (In thousands) | Segment | 9M 2023 Revenues | 9M 2023 Earnings | 9M 2022 Revenues | 9M 2022 Earnings | | :----------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Moving & Storage | $4,285,768 | $968,862 | $4,456,863 | $1,301,277 | | Property & Casualty Insurance | $88,994 | $36,822 | $74,911 | $24,883 | | Life Insurance | $163,918 | $15,039 | $152,761 | $10,440 | | Consolidated Total | $4,529,682 | $1,019,601 | $4,676,040 | $1,335,459 | [Note 12. Geographic Area Data](index=29&type=section&id=12.%20Geographic%20Area%20Data) Geographic Revenue and Pretax Earnings (Quarterly, in thousands) | Region | Q3 2023 Revenues | Q3 2023 Pretax Earnings | Q3 2022 Revenues | Q3 2022 Pretax Earnings | | :----------------------------------- | :--------------- | :---------------------- | :--------------- | :---------------------- | | United States | $1,273,821 | $125,531 | $1,311,117 | $253,386 | | Canada | $65,693 | $4,242 | $64,219 | $7,230 | | Consolidated Total | $1,339,514 | $129,773 | $1,375,336 | $260,616 | Geographic Revenue and Pretax Earnings (Nine Months, in thousands) | Region | 9M 2023 Revenues | 9M 2023 Pretax Earnings | 9M 2022 Revenues | 9M 2022 Pretax Earnings | | :----------------------------------- | :--------------- | :---------------------- | :--------------- | :---------------------- | | United States | $4,294,310 | $801,045 | $4,431,570 | $1,129,487 | | Canada | $235,372 | $25,471 | $244,470 | $38,018 | | Consolidated Total | $4,529,682 | $826,516 | $4,676,040 | $1,167,505 | - Canada accounted for approximately **5.2% of total revenues** for both the first nine months of fiscal 2024 and 2023, and a **10% change** in the U.S. dollar relative to the Canadian dollar is not expected to be material to net income[113](index=113&type=chunk)[322](index=322&type=chunk) [Note 13. Employee Benefit Plans](index=30&type=section&id=13.%20Employee%20Benefit%20Plans) Net Periodic Postretirement Benefit Cost (In thousands) | Component | Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | | :----------------------------------- | :------ | :------ | :------ | :------ | | Service cost for benefits earned | $297 | $332 | $891 | $995 | | Total other components of net periodic benefit costs | $365 | $304 | $1,094 | $912 | | Net periodic postretirement benefit cost | $662 | $636 | $1,985 | $1,907 | - Net periodic postretirement benefit cost increased slightly for both the quarter and nine months ended December 31, 2023, compared to the prior year, primarily due to higher interest costs on accumulated postretirement benefits[115](index=115&type=chunk) [Note 14. Fair Value Measurements](index=30&type=section&id=14.%20Fair%20Value%20Measurements) - Financial assets and liabilities measured at fair value are classified into a three-tiered hierarchy: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than quoted prices), and Level 3 (unobservable significant inputs)[116](index=116&type=chunk) Financial Assets Measured at Fair Value (In thousands) | Category | Dec 31, 2023 Total | Dec 31, 2023 Level 1 | Dec 31, 2023 Level 2 | Dec 31, 2023 Level 3 | | :----------------------------------- | :----------------- | :----------------- | :----------------- | :----------------- | | Fixed maturities - available for sale | $2,474,624 | $217,917 | $2,256,648 | $59 | | Preferred stock | $20,141 | $20,141 | — | — | | Common stock | $39,534 | $39,534 | — | — | | Derivatives | $13,881 | $8,795 | $5,086 | — | | Total | $2,548,180 | $286,387 | $2,261,734 | $59 | - The fair values of cash equivalents, mortgage loans, and trade receivables approximate their recorded values due to short maturity periods or consistent lending practices[121](index=121&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) [Note 15. Revenue Recognition](index=32&type=section&id=15.%20Revenue%20Recognition) - Revenue is recognized based on a five-step model under ASC Topic 606 for contracts with customers, excluding leases, insurance, and financial instruments[127](index=127&type=chunk) - Self-moving equipment rentals and self-storage revenues are recognized over the contract period under ASC Topic 842 (Leases)[135](index=135&type=chunk)[136](index=136&type=chunk)[139](index=139&type=chunk) Disaggregated Revenues by Timing of Recognition (Nine Months, in thousands) | Recognition Method | 9M 2023 | 9M 2022 | | :----------------------------------- | :------ | :------ | | Revenues recognized over time (ASC 606) | $283,468 | $300,082 | | Revenues recognized at a point in time (ASC 606) | $315,084 | $338,019 | | Revenues recognized under ASC 842 (Leases) | $3,599,867 | $3,772,203 | | Revenues recognized under ASC 944 (Insurance) | $144,476 | $149,360 | | Revenues recognized under ASC 320 (Investments) | $186,787 | $116,376 | | Total revenues | $4,529,682 | $4,676,040 | [Note 16. Allowance for Credit Losses](index=35&type=section&id=16.%20Allowance%20for%20Credit%20Losses) - The allowance for expected credit losses for trade receivables was estimated at approximately **4%** as of December 31, 2023, and March 31, 2023, based on historical loss rates adjusted for current economic conditions[151](index=151&type=chunk) Allowance for Credit Losses (In thousands) | Category | Dec 31, 2023 | Mar 31, 2023 | | :----------------------------------- | :----------- | :----------- | | Trade Receivables | $4,345 | $3,789 | | Fixed Maturities | $1,704 | $2,101 | | Investments, other | $817 | $517 | | Total | $6,866 | $6,407 | - Accrued interest receivables and premium receivables are generally excluded from credit loss estimates due to timely write-off practices or policy cancellation rights[152](index=152&type=chunk)[156](index=156&type=chunk) [Note 17. Accounting Pronouncements](index=37&type=section&id=17.%20Accounting%20Pronouncements) - The Company adopted ASU 2018-12, 'Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts,' effective April 1, 2023, using a modified retrospective method with a transition date of April 1, 2021[159](index=159&type=chunk) - The adoption of ASU 2018-12 required quarterly updates to discount rate assumptions (affecting OCI) and annual reviews of cash flow assumptions (affecting results of operations) for long-duration contracts[160](index=160&type=chunk) - New ASUs include 2023-01 (Leases - Common Control Arrangements), 2023-07 (Segment Reporting), and 2023-09 (Income Taxes), which the Company is currently evaluating for potential impacts[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk) [Note 18. Deferred Policy Acquisition Costs, Net](index=41&type=section&id=18.%20Deferred%20Policy%20Acquisition%20Costs%2C%20Net) Deferred Policy Acquisition Costs (DAC) Rollforward (Nine Months, in thousands) | Category | Dec 31, 2023 | Dec 31, 2022 | | :----------------------------------- | :----------- | :----------- | | Balance, beginning of year | $128,463 | $131,430 | | Capitalization | $11,397 | $20,406 | | Amortization expense | -$19,026 | -$18,116 | | Balance, end of period | $120,834 | $133,720 | - DAC amortization expense increased to **$19.0 million** for the nine months ended December 31, 2023, from **$18.1 million** in the prior year, influenced by changes due to ASU 2018-12 adoption[182](index=182&type=chunk)[184](index=184&type=chunk) [Note 19. Policy Benefits and Losses, Claims and Loss Expenses Payable](index=43&type=section&id=19.%20Policy%20Benefits%20and%20Losses%2C%20Claims%20and%20Loss%20Expenses%20Payable) Policy Benefits and Losses, Claims and Loss Expenses Payable (In thousands) | Category | Dec 31, 2023 | Mar 31, 2023 | | :----------------------------------- | :----------- | :----------- | | Policy benefits and losses, claims and loss expenses payable | $838,945 | $880,202 | | Liabilities from investment contracts | $2,363,143 | $2,398,884 | - The liability for future policy benefits for traditional and limited-payment long-duration life and health products is determined using the net level premium method, with quarterly remeasurement using current discount rates affecting Other Comprehensive Income[40](index=40&type=chunk)[41](index=41&type=chunk) Liabilities from Investment Contracts Account Balances (Nine Months, in thousands) | Metric | 9M 2023 | 9M 2022 | | :----------------------------------- | :------ | :------ | | Beginning of year | $2,398,884 | $2,336,238 | | Deposits received | $206,800 | $243,144 | | Surrenders and withdrawals | -$265,999 | -$195,801 | | Interest credited | $52,594 | $40,328 | | End of period | $2,363,143 | $2,396,702 | | Weighted average credited rate | **2.96%** | **2.27%** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial performance, condition, and future outlook, covering overall strategy, segment descriptions, critical accounting policies, detailed results of operations for the quarter and nine months, liquidity and capital resources, and the fiscal 2024 outlook, highlighting a decrease in self-moving equipment rental revenues and an increase in self-storage revenues, alongside higher operating expenses and interest costs [General](index=48&type=section&id=General) - The MD&A provides an overview of U-Haul Holding Company's strategy, operating segments, critical accounting estimates, results of operations, liquidity, and financial commitments[195](index=195&type=chunk) - The Company's fiscal quarter ends on December 31st, while insurance subsidiaries' third quarter ends on September 30th, with consolidation based on this difference[197](index=197&type=chunk) [Overall Strategy](index=48&type=section&id=Overall%20Strategy) - The Company's overall strategy is to maintain leadership in the 'do-it-yourself' moving and storage industry in the U.S. and Canada by providing a seamless and integrated supply chain[198](index=198&type=chunk) - Primary focus areas include expanding the selection and availability of moving rental equipment, convenient self-storage facilities, and related products and services[199](index=199&type=chunk) - Property and Casualty Insurance focuses on providing and administering insurance to U-Haul and its customers, while Life Insurance aims for long-term capital growth through life, Medicare supplement, and annuity policies in the senior market[200](index=200&type=chunk) [Description of Operating and Reportable Segments](index=48&type=section&id=Description%20of%20Operating%20and%20Reportable%20Segments) - The three operating and reportable segments are Moving and Storage, Property and Casualty Insurance, and Life Insurance[201](index=201&type=chunk)[212](index=212&type=chunk) - Moving and Storage includes rental of trucks, trailers, portable units, self-storage, and sales of moving supplies, operating under the U-Haul® trade name[202](index=202&type=chunk) - Property and Casualty Insurance provides loss adjusting and claims handling for U-Haul and underwrites protection packages for U-Haul customers[208](index=208&type=chunk) - Life Insurance offers life and health insurance products, primarily to the senior market, through direct writing and reinsuring policies[209](index=209&type=chunk) [Cybersecurity Incident](index=49&type=section&id=Cybersecurity%20Incident) - A data security incident occurred between November 2021 and April 2022, where customer names, dates of birth, and driver's license numbers were accessed due to compromised passwords[210](index=210&type=chunk)[213](index=213&type=chunk) - U-Haul took immediate steps to contain the incident, enhanced security, and notified impacted customers and authorities. Financial, payment processing, or email systems were not involved[210](index=210&type=chunk)[213](index=213&type=chunk) - Several class action lawsuits related to the incident have been consolidated, with all claims dismissed except those under the California Consumer Privacy Act, which the Company intends to vigorously defend[214](index=214&type=chunk) [Critical Accounting Policies and Estimates](index=50&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - For critical accounting policies and estimates, refer to the Annual Report on Form 10-K for the fiscal year ended March 31, 2023[215](index=215&type=chunk) [Results of Operations](index=50&type=section&id=Results%20of%20Operations) [Consolidated Results (Quarterly)](index=50&type=section&id=U-Haul%20Holding%20Company%20and%20Consolidated%20Entities%20Quarter%20Ended%20December%2031%2C%202023%20compared%20with%20the%20Quarter%20Ended%20December%2031%2C%202022) Consolidated Revenue Breakdown (Quarterly, in thousands) | Revenue Type | Q3 2023 | Q3 2022 | Change (YoY) | | :----------------------------------- | :------ | :------ | :----------- | | Self-moving equipment rental revenues | $839,801 | $898,819 | -$59,018 | | Self-storage revenues | $210,517 | $190,483 | +$20,034 | | Net investment and interest income | $57,457 | $52,294 | +$5,163 | | Total revenues | $1,339,514 | $1,375,336 | -$35,822 | - Self-moving equipment rental revenues decreased by **$59.0 million** due to declines in transactions, revenue, and average miles driven, particularly in one-way business[216](index=216&type=chunk) - Self-storage revenues increased by **$20.0 million**, driven by a **5.7% increase** in average monthly occupied units and a **3.8% improvement** in average revenue per occupied foot, with **1.0 million** new net rentable square feet added[217](index=217&type=chunk) - Earnings from operations decreased by **$122.4 million** to **$197.6 million**, primarily due to increased total costs and expenses (**$86.6 million** increase), including higher operating expenses and depreciation[223](index=223&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk) [Moving and Storage Segment Results (Quarterly)](index=52&type=section&id=Moving%20and%20Storage%20Quarter%20Ended%20December%2031%2C%202023%20compared%20with%20the%20Quarter%20Ended%20December%2031%2C%202022) Moving and Storage Revenue Breakdown (Quarterly, in thousands) | Revenue Type | Q3 2023 | Q3 2022 | Change (YoY) | | :----------------------------------- | :------ | :------ | :----------- | | Self-moving equipment rental revenues | $841,136 | $900,209 | -$59,073 | | Self-storage revenues | $210,517 | $190,483 | +$20,034 | | Total Moving and Storage revenue | $1,260,677 | $1,296,407 | -$35,730 | - Self-storage average monthly occupancy rate decreased to **81.8%** from **82.9%** year-over-year, despite an increase in total square footage and occupied square footage[229](index=229&type=chunk) - Earnings from operations for Moving and Storage decreased by **$124.3 million** to **$180.5 million**, driven by increased operating expenses and depreciation, and decreased net gains from rental equipment disposal[232](index=232&type=chunk)[233](index=233&type=chunk)[234](index=234&type=chunk) [Property and Casualty Insurance Segment Results (Quarterly)](index=54&type=section&id=Property%20and%20Casualty%20Insurance%20Quarter%20Ended%20September%2030%2C%202023%20compared%20with%20the%20Quarter%20Ended%20September%2030%2C%202022) Property and Casualty Insurance Highlights (Quarterly, in thousands) | Metric | Q3 2023 | Q3 2022 | Change (YoY) | | :----------------------------------- | :------ | :------ | :----------- | | Net premiums | $27,300 | $26,900 | +$400 | | Net investment and interest income | $2,000 | $1,600 | +$400 | | Pretax earnings from operations | $9,400 | $10,800 | -$1,400 | - Net premiums increased slightly, corresponding with improvements in U-Haul's storage and U-Box transactions[237](index=237&type=chunk) - Pretax earnings from operations decreased by **$1.4 million** due to increased operating expenses (commissions and personnel) and higher benefits and losses incurred[238](index=238&type=chunk)[239](index=239&type=chunk) [Life Insurance Segment Results (Quarterly)](index=54&type=section&id=Life%20Insurance%20Quarter%20Ended%20September%2030%2C%202023%20compared%20with%20the%20Quarter%20Ended%20September%2030%2C%202022) Life Insurance Highlights (Quarterly, in thousands) | Metric | Q3 2023 | Q3 2022 | Change (YoY) | | :----------------------------------- | :------ | :------ | :----------- | | Net premiums | $22,600 | $24,400 | -$1,800 | | Net investment income | $28,700 | $27,200 | +$1,500 | | Pretax earnings (losses) from operations | $8,000 | $4,700 | +$3,300 | - Net premiums decreased by **$1.8 million**, primarily due to decreased life and Medicare supplement premiums from policy decrements outweighing sales[240](index=240&type=chunk) - Pretax earnings from operations increased by **$3.3 million**, driven by higher net investment income, including realized gains on derivatives, and decreased amortization of deferred acquisition costs[241](index=241&type=chunk)[243](index=243&type=chunk)[244](index=244&type=chunk) [Consolidated Results (Nine Months)](index=55&type=section&id=U-Haul%20Holding%20Company%20and%20Consolidated%20Entities%20Nine%20Months%20Ended%20December%2031%2C%202023%20compared%20with%20the%20Nine%20Months%20Ended%20December%2031%2C%202022) Consolidated Revenue Breakdown (Nine Months, in thousands) | Revenue Type | 9M 2023 | 9M 2022 | Change (YoY) | | :----------------------------------- | :------ | :------ | :----------- | | Self-moving equipment rental revenues | $2,908,412 | $3,151,619 | -$243,207 | | Self-storage revenues | $618,368 | $549,246 | +$69,122 | | Net investment and interest income | $186,787 | $116,376 | +$70,411 | | Total revenues | $4,529,682 | $4,676,040 | -$146,358 | - Self-moving equipment rental revenues decreased by **$243.2 million**, while self-storage revenues increased by **$69.1 million**, driven by a **7.9% increase** in occupied units and new capacity additions[245](index=245&type=chunk)[246](index=246&type=chunk) - Net investment and interest income increased by **$70.4 million**, with Moving and Storage contributing **$39.1 million** due to higher interest rates on short-term deposits, and Life Insurance contributing **$18.2 million** from derivative gains[249](index=249&type=chunk) - Earnings from operations decreased by **$315.9 million** to **$1,019.6 million**, primarily due to a **$169.5 million** increase in total costs and expenses, including higher repair costs for the rental fleet and increased depreciation[252](index=252&type=chunk)[253](index=253&type=chunk)[254](index=254&type=chunk) [Moving and Storage Segment Results (Nine Months)](index=57&type=section&id=Moving%20and%20Storage%20Nine%20Months%20Ended%20December%2031%2C%202023%20compared%20with%20the%20Nine%20Months%20Ended%20December%2031%2C%202022) Moving and Storage Revenue Breakdown (Nine Months, in thousands) | Revenue Type | 9M 2023 | 9M 2022 | Change (YoY) | | :----------------------------------- | :------ | :------ | :----------- | | Self-moving equipment rental revenues | $2,911,903 | $3,155,295 | -$243,392 | | Self-storage revenues | $618,368 | $549,246 | +$69,122 | | Total Moving and Storage revenue | $4,285,768 | $4,456,863 | -$171,095 | - Self-storage average monthly occupancy rate decreased to **82.9%** from **84.2%** year-over-year, despite adding **4.4 million** net rentable square feet of new storage capacity[258](index=258&type=chunk) - Earnings from operations for Moving and Storage decreased by **$332.4 million** to **$968.9 million**, primarily due to a **$161.3 million** increase in total costs and expenses, including higher repair costs and depreciation, and decreased net gains from rental equipment disposal[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk) [Property and Casualty Insurance Segment Results (Nine Months)](index=59&type=section&id=Property%20and%20Casualty%20Insurance%20Nine%20Months%20Ended%20September%2030%2C%202023%20compared%20with%20the%20Nine%20Months%20Ended%20September%2030%2C%202022) Property and Casualty Insurance Highlights (Nine Months, in thousands) | Metric | 9M 2023 | 9M 2022 | Change (YoY) | | :----------------------------------- | :------ | :------ | :----------- | | Net premiums | $74,700 | $73,600 | +$1,100 | | Net investment and interest income | $14,300 | $1,300 | +$13,000 | | Pretax earnings from operations | $36,800 | $24,900 | +$11,900 | - Net investment and interest income significantly increased by **$13.0 million**, primarily due to an increase in the market value of common stock investments[266](index=266&type=chunk) - Pretax earnings from operations increased by **$11.9 million**, despite higher operating expenses, due to the substantial increase in net investment income[266](index=266&type=chunk)[267](index=267&type=chunk) [Life Insurance Segment Results (Nine Months)](index=59&type=section&id=Life%20Insurance%20Nine%20Months%20Ended%20September%2030%2C%202023%20compared%20with%20the%20Nine%20Months%20Ended%20September%2030%2C%202022) Life Insurance Highlights (Nine Months, in thousands) | Metric | 9M 2023 | 9M 2022 | Change (YoY) | | :----------------------------------- | :------ | :------ | :----------- | | Net premiums | $68,200 | $75,600 | -$7,400 | | Net investment income | $91,800 | $73,700 | +$18,100 | | Pretax earnings from operations | $14,700 | $10,300 | +$4,400 | - Net premiums decreased by **$7.4 million**, primarily due to decreased Medicare Supplement and life premiums, as policyholder lapses outweighed sales[268](index=268&type=chunk) - Net investment income increased by **$18.1 million**, driven by realized gains on derivatives used as hedges to fixed indexed annuities[269](index=269&type=chunk) - Pretax earnings from operations increased by **$4.4 million**, despite higher benefits and losses incurred due to increased interest credited to policyholders, offset by lower death claims and decreased amortization of DAC[271](index=271&type=chunk)[272](index=272&type=chunk) [Liquidity and Capital Resources](index=59&type=section&id=Liquidity%20and%20Capital%20Resources) [Liquidity and Capital Resources by Segment](index=59&type=section&id=Liquidity%20and%20Capital%20Resources%20and%20Requirements%20of%20Our%20Operating%20Segments) Segment Financial Assets and Debt Obligations (As of Dec 31, 2023, in thousands) | Segment | Cash and cash equivalents | Other financial assets | Debt obligations | | :----------------------------------- | :---------------------- | :--------------------- | :--------------- | | Moving & Storage | $1,736,295 | $386,384 | $6,471,405 | | Property & Casualty Insurance (Sep 30, 2023) | $36,951 | $401,829 | — | | Life Insurance (Sep 30, 2023) | $32,730 | $2,627,129 | — | - Moving and Storage had **$475.0 million** in additional cash available under existing credit facilities as of December 31, 2023[275](index=275&type=chunk) - Moving and Storage invested **$755 million** (net of sales, excluding lease buyouts) in its rental equipment fleet and **$969 million** in real estate acquisitions, new construction, and renovation for the first nine months of fiscal 2024[279](index=279&type=chunk)[281](index=281&type=chunk) - Property and Casualty Insurance's assets are generally restricted from non-insurance operations, with stockholders' equity at **$319.8 million** as of September 30, 2023[283](index=283&type=chunk)[284](index=284&type=chunk) - Life Insurance's assets are also generally restricted, with stockholders' equity at **$122.5 million** as of September 30, 2023. It has **$60.0 million** in outstanding deposits with the FHLB and **$82.8 million** in availability[285](index=285&type=chunk)[287](index=287&type=chunk) [Cash Flows by Operating Segments](index=62&type=section&id=Cash%20Flows%20by%20Operating%20Segments) Net Cash Provided by Operating Activities (Nine Months, in thousands) | Segment | 9M 2024 | 9M 2023 | | :----------------------------------- | :------ | :------ | | Moving and Storage | $1,147,000 | $1,419,000 | | Property and Casualty Insurance | $27,400 | $30,200 | | Life Insurance | $65,600 | $66,500 | - Moving and Storage's operating cash flow decreased due to lower operating profits and increased claim payments[288](index=288&type=chunk) - Insurance segments' operating cash flows decreased slightly due to timing of payables and settlement of receivables[289](index=289&type=chunk)[291](index=291&type=chunk) [Liquidity and Capital Resources - Summary](index=62&type=section&id=Liquidity%20and%20Capital%20Resources%20-%20Summary) - The Company believes it has sufficient financial resources, including significant cash, access to existing credit facilities, and additional liquidity, to meet business plans and capital expenditure requirements[293](index=293&type=chunk)[296](index=296&type=chunk) - Refund claims from net operating loss carrybacks under the CARES Act total approximately **$366 million**, with **$243 million** already received, providing additional liquidity[294](index=294&type=chunk) - The borrowing strategy focuses on asset-backed financing, rental equipment leases, and private placement borrowings, aiming to ladder maturities and fix interest rates[296](index=296&type=chunk) [Disclosures about Contractual Obligations and Commercial Commitments](index=63&type=section&id=Disclosures%20about%20Contractual%20Obligations%20and%20Commercial%20Commitments) - Estimates for future contractual obligations have not materially changed from those disclosed in the Annual Report on Form 10-K for the fiscal year ended March 31, 2023[297](index=297&type=chunk) [Fiscal 2024 Outlook](index=63&type=section&id=Fiscal%202024%20Outlook) - The Company will continue to focus on increasing transaction volume, improving pricing, product, and utilization for self-moving equipment rentals, with new investment in the truck fleet expected to increase[298](index=298&type=chunk) - For the storage business, plans include completing current projects, increasing occupancy, and acquiring new locations, with spending on acquisitions and new development likely to increase[299](index=299&type=chunk) - Inflationary pressures may challenge the ability to maintain or improve operating margins[300](index=300&type=chunk) - Life Insurance aims to expand its presence in the senior market by growing its agency force, expanding product offerings, and pursuing business acquisition opportunities[301](index=301&type=chunk) [Consolidating Schedules by Operating and Reporting Segment](index=64&type=section&id=Consolidating%20Schedules%20by%20Operating%20and%20Reporting%20Segment%20%28Unaudited%29) - This section provides detailed consolidating balance sheets, statements of operations, and cash flow statements by operating segment, including elimination entries for U-Haul Holding Company and its subsidiaries[303](index=303&type=chunk)[305](index=305&type=chunk)[308](index=308&type=chunk)[309](index=309&type=chunk)[310](index=310&type=chunk)[311](index=311&type=chunk)[312](index=312&type=chunk)[313](index=313&type=chunk)[314](index=314&type=chunk)[315](index=315&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=76&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the Company's exposure to financial market risks, primarily interest rate risk and foreign currency exchange rate risk, and the strategies employed to mitigate them, highlighting the use of derivative financial instruments, such as interest rate swaps and equity market hedges, and provides a cautionary statement regarding forward-looking information [Interest Rate Risk](index=76&type=section&id=Interest%20Rate%20Risk) - The Company is exposed to interest rate risk primarily from variable rate debt obligations and one variable rate operating lease. Interest rate swap agreements are used to fix interest payments on certain SOFR indexed variable rate debt[317](index=317&type=chunk) Interest Rate Swap Agreements (As of Dec 31, 2023, in thousands) | Notional Amount | Fair Value | Fixed Rate | Floating Rate | | :----------------------------------- | :----------- | :--------- | :------------ | | $58,487 | $2,234 | **2.86%** | 1 Month SOFR | | $71,000 | $1,905 | **2.72%** | 1 Month SOFR | | $70,500 | $1,770 | **2.75%** | 1 Month SOFR | | $100,000 | -$823 | **4.71%** | 1 Month SOFR | - A 100 basis point increase in SOFR on the **$449.4 million** of unfixed variable rate debt would decrease future earnings and cash flows by **$4.5 million** annually[317](index=317&type=chunk) - Equity market exposure to indexed annuity products is hedged using listed equity and index call options, which are marked to fair value with changes recognized in net investment and interest income[319](index=319&type=chunk)[320](index=320&type=chunk) [Foreign Currency Exchange Rate Risk](index=77&type=section&id=Foreign%20Currency%20Exchange%20Rate%20Risk) - The Company's exposure to foreign currency exchange rate risk primarily relates to its Canadian business, which generated approximately **5.2% of total revenues** in both the first nine months of fiscal 2024 and 2023[322](index=322&type=chunk) - A **10% change** in the value of the U.S. dollar relative to the Canadian dollar is not considered material to net income, and the Company typically does not hedge this risk[322](index=322&type=chunk) [Cautionary Statements Regarding Forward-Looking Statements](index=77&type=section&id=Cautionary%20Statements%20Regarding%20Forward-Looking%20Statements) - The report contains forward-looking statements subject to risks and uncertainties, including economic conditions, competition, regulatory changes, litigation, and cybersecurity breaches[323](index=323&type=chunk)[324](index=324&type=chunk) - Factors that could significantly affect results include fleet maintenance costs, reliance on manufacturers, ability to hedge debt, control by a small contingent of stockholders, and outcomes of litigation[324](index=324&type=chunk) - The Company assumes no obligation to update or revise any forward-looking statements, except as required by law[324](index=324&type=chunk) [Item 4. Controls and Procedures](index=78&type=section&id=Item%204.%20Controls%20and%20Procedures) This section addresses the effectiveness of the Company's disclosure controls and procedures and internal control over financial reporting, detailing the remediation of a previously disclosed material weakness related to earnings per share calculation and ongoing efforts to address a material weakness in general information technology controls [Evaluation of Disclosure Controls and Procedures](index=78&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - As of December 31, 2023, the CEO and CFO concluded that the Company's disclosure controls and procedures were not effective due to a material weakness in internal control over financial reporting related to general information technology controls[326](index=326&type=chunk) [Previously Disclosed Material Weaknesses and Remediation Plan](index=78&type=section&id=Previously%20Disclosed%20Material%20Weaknesses%20and%20Remediation%20Plan) - The material weakness related to the two-class method of earnings per share calculation for UHAL.B common stock has been remediated through redesigned controls, training, and enhanced documentation[327](index=327&type=chunk)[328](index=328&type=chunk) - A material weakness in general information technology controls (program change management, user access, segregation of duties, cybersecurity) persists, with ongoing remediation efforts including formalizing policies, implementing new controls, and strengthening password policies[329](index=329&type=chunk)[331](index=331&type=chunk) - The IT control material weakness will not be considered remediated until controls operate effectively for a sufficient period and are tested by management[332](index=332&type=chunk) [Changes in Internal Control Over Financial Reporting](index=79&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) - Other than the material weakness in general information technology controls, there have been no other material changes in internal control over financial reporting during the quarter ended December 31, 2023[333](index=333&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=79&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the information regarding legal proceedings from Note 9, Contingencies, in the Notes to Consolidated Financial Statements - Information on legal proceedings, including the cybersecurity incident and related class action lawsuits, is detailed in Note 9, Contingencies[335](index=335&type=chunk) [Item 1A. Risk Factors](index=79&type=page&id=Item%201A.%20Risk%20Factors) This section updates the Company's risk factors, specifically highlighting the high dependency on automated systems and the Internet for business management, and the associated risks of disruptions, breaches, and cyber-attacks, including the impact of a previously experienced cybersecurity incident - The Company is highly dependent on its Internet-based automated systems for operations, exposing it to risks from natural disasters, terrorist attacks, and cyber-attacks[337](index=337&type=chunk) - Security breaches could lead to operational disruptions, loss of customers, reputational damage, litigation, and significant costs for protection measures[338](index=338&type=chunk)[342](index=342&type=chunk) - The Company experienced a cybersecurity incident in 2022 and 2021 and continues to face a significant increase in attempted attacks, making it challenging to anticipate and prevent new techniques[339](index=339&type=chunk)[341](index=341&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=80&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable for the reporting period [Item 3. Defaults Upon Senior Securities](index=80&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable for the reporting period [Item 4. Mine Safety Disclosures](index=80&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable for the reporting period [Item 5. Other Information](index=80&type=section&id=Item%205.%20Other%20Information) This section states that no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended December 31, 2023 - No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended December 31, 2023[346](index=346&type=chunk) [Item 6. Exhibits](index=80&type=section&id=Item%206.%20Exhibits) This section lists all documents filed as exhibits to the Form 10-Q, including articles of incorporation, certificates of designation, bylaws, and certifications from executive officers - Exhibits include organizational documents (Amended and Restated Articles of Incorporation, Certificate of Designation of Series N Non-Voting Common Stock, Restated Bylaws) and certifications from the President, Chairman of the Board, and Chief Financial Officer[347](index=347&type=chunk)[348](index=348&type=chunk)

Revenue Performance - Total revenues for the quarter ended September 30, 2023, were $1,649,860, a decrease of 3.1% from $1,702,864 in the same quarter of 2022[13]. - For the six months ended September 30, 2023, total revenues were $3,190,168, a decrease of 3.3% from $3,300,704 in the same period of 2022[18]. - Self-moving equipment rentals decreased to $1,069,405, down 7.9% from $1,162,025 year-over-year[13]. - Self-storage revenues for the quarter ended September 30, 2023, were $208,890, contributing to the overall revenue growth[137]. - Self-moving equipment rental revenues for the next five years are projected to be $7.14 million in 2024, with property lease revenues totaling $20.72 million in the same year[186]. Earnings and Profitability - Net earnings available to common stockholders for the quarter were $273,508, a decline of 21.8% compared to $349,866 in the prior year[15]. - Basic and diluted earnings per share of Common Stock were $1.36, down from $2.23 in the same quarter last year[15]. - The company reported a net earnings of $530,346 for the six months, down from $688,211 in the same period last year[18]. - Net earnings for the six months ended September 30, 2023, were $530,346,000, a decrease from $688,211,000 for the same period in 2022, representing a decline of approximately 22.9%[23]. - The company reported a net earnings of $273,508,000 for the quarter ended September 30, 2023, compared to $349,866,000 for the same quarter in 2022, reflecting a decrease of approximately 21.8%[25]. Assets and Liabilities - Total assets increased to $19,021,450 as of September 30, 2023, compared to $18,100,734 as of March 31, 2023[11]. - Total liabilities rose to $11,991,072, up from $11,596,543 as of March 31, 2023[11]. - The balance of stockholders' equity as of September 30, 2023, was $7,030,378,000, an increase from $6,324,173,000 as of September 30, 2022, representing a growth of about 11.2%[26]. - As of September 30, 2023, total notes, loans, and finance leases payable amounted to $6,436.8 million, an increase from $6,143.4 million as of March 31, 2023[69]. Cash Flow and Investments - Net cash provided by operating activities decreased to $937,431 in 2023 from $1,188,164 in 2022, reflecting a decline of 21.1%[31]. - Cash and cash equivalents at the end of the period were $2,145,131, down from $3,065,115 in 2022, representing a decrease of 30%[31]. - The company reported net cash used by investing activities of $1,086,326 in 2023, a slight decrease of 1.6% from $1,104,807 in 2022[31]. - The company’s cash and cash equivalents increased to $2,145,131 as of September 30, 2023, from $2,060,524 as of March 31, 2023[11]. Operating Expenses - Operating expenses for the six months increased to $1,598,499, compared to $1,544,761 in the prior year[18]. - Operating expenses for the same quarter totaled $835,258, indicating a significant investment in operational capabilities[137]. - Interest expense for the six months ended September 30, 2023, was $124,541,000, compared to $106,992,000 in the same period of 2022, representing an increase of approximately 16.3%[146]. Comprehensive Income - Total comprehensive income for the six months ended September 30, 2023, was $540,305,000, compared to $449,706,000 for the same period in 2022, indicating an increase of about 20.1%[23]. - Other comprehensive income (loss) for the six months ended September 30, 2023, showed a gain of $9,959,000, contrasting with a loss of $238,505,000 for the same period in 2022[23]. Segment Information - The company has three reportable segments: Moving and Storage, Property and Casualty Insurance, and Life Insurance[40]. Credit and Financing - The company is in compliance with all covenants related to its loans and financing agreements as of September 30, 2023[71]. - The maximum amount outstanding during the quarter for revolving credit facilities was $1,102.0 million, up from $605.0 million in the previous year[87]. Accounting and Regulatory Changes - The Company adopted ASU 2018-12 effective April 1, 2023, impacting the measurement and disclosure of long-duration contracts[203]. - The updated accounting guidance requires annual reviews of cash flow assumptions and quarterly updates of discount rate assumptions[204].

Revenue Performance - Self-moving equipment rental revenues decreased by $91.6 million, from $1,090.8 million in Q1 FY2023 to $999.2 million in Q1 FY2024, with declines in transactions and average miles driven [242]. - Self-storage revenues increased by $25.8 million, from $173.2 million in Q1 FY2023 to $199.0 million in Q1 FY2024, with a 9% increase in average monthly occupied units [245]. - Consolidated revenue decreased from $1,597.8 million in Q1 FY2023 to $1,540.3 million in Q1 FY2024, reflecting a total decline of approximately 3.6% [242]. - Moving and Storage revenue decreased to $1,459.5 million in Q1 FY2024 from $1,523.6 million in Q1 FY2023, a decline of 4.2% [257]. - Self-storage revenues increased by $25.8 million, reaching $198.9 million in Q1 FY2024, with a 9% increase in average monthly occupied units [258]. - The average monthly occupancy rate for self-storage decreased to 82.8% in Q1 FY2024 from 84.5% in Q1 FY2023 [259]. - Approximately 5.1% of the company's revenue was generated in Canada during Q1 fiscal 2024, with a 10% change in the U.S. dollar relative to the Canadian dollar not expected to materially impact net income [310]. Earnings and Expenses - Earnings from operations decreased to $399.7 million in Q1 FY2024, down from $495.5 million in Q1 FY2023, representing a decline of 19.3% [253]. - Basic and diluted earnings per share for Voting Common Stock decreased from $2.18 in Q1 FY2023 to $1.27 in Q1 FY2024 [255]. - Total costs and expenses increased by $38.3 million in Q1 FY2024 compared to Q1 FY2023, with operating expenses for Moving and Storage rising by $28.5 million [251]. - Total costs and expenses increased by $30.8 million, with operating expenses rising by $28.5 million in Q1 FY2024 compared to Q1 FY2023 [262]. - Net cash provided by operating activities decreased by $185.7 million in Q1 FY2024 compared to Q1 FY2023 due to lower operating profits and increased claims payments [279]. - Net cash provided from operating activities for Moving and Storage decreased to $452.0 million in Q1 fiscal 2024 from $623.6 million in Q1 fiscal 2023, a decline of 27.5% [289]. Investment and Capital Expenditures - The company plans to reinvest approximately $820 million in its rental equipment fleet during FY2024, with $261 million already invested in Q1 FY2024 [281]. - The company invested $293.9 million in real estate acquisitions, new construction, and renovations in Q1 FY2024 [282]. - Net capital expenditures for Moving and Storage were $580.1 million in Q1 fiscal 2024, up from $487.0 million in Q1 fiscal 2023, reflecting a 19.1% increase [283]. Financial Position and Liquidity - Cash and cash equivalents increased to $2,377.1 million as of June 30, 2023, compared to $2,060.5 million at March 31, 2023 [278]. - The company has filed claims for tax refunds totaling approximately $366 million, of which $243 million has been received, providing additional liquidity [296]. - As of June 30, 2023, the company had available borrowing capacity under existing credit facilities of $490.0 million [297]. Risk Factors and Strategic Focus - The company is exposed to interest rate risk with $694.2 million of variable rate debt obligations, of which $490.0 million is not fixed through interest rate swaps [304]. - The company acknowledges the inherent risks and uncertainties associated with forward-looking statements, including competition and economic conditions [311]. - The company is assessing the impact of interest rate and foreign currency exchange rate changes on its operations, highlighting financial risk management [311]. - The company emphasizes the importance of compliance with environmental regulations, which may affect operational costs [312]. - The company relies on a limited number of manufacturers for rental trucks, indicating potential supply chain vulnerabilities [312]. - The company faces challenges related to inflationary pressures that could impact its operating margin [312]. - The company recognizes the need to attract and retain key employees to ensure operational success [312]. Growth and Expansion Plans - The company plans to increase investment in its truck fleet and rental equipment to meet operational goals in fiscal 2024, with a focus on improving transaction volume and pricing [299]. - The company is actively pursuing new locations and expansions in its storage business, with an expected increase in spending on acquisitions and new developments in fiscal 2024 [300]. - The company plans to expand its U-Haul® storage affiliate program, indicating a focus on growth in storage solutions [311]. - The company is investing in the U-Box® program, which suggests a strategy to enhance its service offerings [311].

PART I [Business Overview](index=2&type=section&id=Item%201.%20Business) U-Haul Holding Company is North America's largest 'do-it-yourself' moving and storage operator, providing a wide range of moving and storage solutions - U-Haul Holding Company is North America's largest 'do-it-yourself' moving and storage operator, providing products and services for household and commercial goods[10](index=10&type=chunk) - The company operates over **2,200** Company-operated retail moving stores and nearly **21,300** independent U-Haul® dealers across the United States and Canada[12](index=12&type=chunk) - U-Haul's business model incorporates sustainable practices, including equipment sharing and manufacturing reusable/recyclable products[14](index=14&type=chunk) [Company Overview](index=2&type=section&id=Company%20Overview) U-Haul Holding Company is North America's largest 'do-it-yourself' moving and storage provider, founded in 1945 - U-Haul Holding Company is North America's largest 'do-it-yourself' moving and storage operator, providing products and services for household and commercial goods[10](index=10&type=chunk) - The company was founded in **1945** as 'U-Haul Trailer Rental Company' and expanded into truck rentals in **1959**, developing a network of company-managed retail stores and independent dealers[11](index=11&type=chunk) - U-Haul's operations include property and casualty insurance (**Repwest**, **ARCOA**) and life insurance (**Oxford Life**) subsidiaries[15](index=15&type=chunk) [Products and Rental Equipment](index=3&type=section&id=Products%20and%20Rental%20Equipment) U-Haul offers a rental fleet of trucks, trailers, and towing devices, alongside self-storage and related moving services U-Haul Rental Fleet as of March 31, 2023 | Equipment Type | Quantity (Units) | | :--------------- | :------- | | Trucks | 192,200 | | Trailers | 138,500 | | Towing Devices | 44,500 | - U-Haul offers self-storage services with **1,904** locations, nearly **949,000** rentable units, and **81.2 million square feet** of space as of March 31, 2023[27](index=27&type=chunk) - The company provides moving and storage protection packages (**Safemove®**, **Safetow®**, **Safestor®**, **Safestor Mobile®**, **Safemove Plus®**) and connects customers with independent service providers through its **Moving Help®** program[29](index=29&type=chunk)[30](index=30&type=chunk) [Description of Operating Segments](index=3&type=section&id=Description%20of%20Operating%20Segments) U-Haul operates three segments: Moving and Storage (**94.9%** revenue), Property and Casualty Insurance, and Life Insurance - U-Haul Holding Company has three reportable segments: Moving and Storage, Property and Casualty Insurance, and Life Insurance[33](index=33&type=chunk) Consolidated Net Revenue Contribution by Segment (Fiscal Years) | Segment | Fiscal 2023 | Fiscal 2022 | Fiscal 2021 | | :------------------------------- | :---------- | :---------- | :---------- | | Moving and Storage | 94.9% | 94.0% | 93.1% | | Property and Casualty Insurance | 1.7% | 1.9% | 1.9% | | Life Insurance | 3.4% | 4.1% | 5.0% | [Moving and Storage Operating Segment](index=4&type=section&id=Moving%20and%20Storage%20Operating%20Segment) The primary segment focuses on rentals, self-storage, and expanding its dealer network, with seasonal peak revenues - The Moving and Storage segment's net revenue was approximately **94.9%** of consolidated net revenue in fiscal **2023**[35](index=35&type=chunk) - Key initiatives include expanding the independent dealer network, enhancing the **U-Haul®** app, and implementing **U-Haul Truck Share 24/7®** for mobile device rentals[36](index=36&type=chunk)[37](index=37&type=chunk) - The business is seasonal, with peak revenues in the first and second fiscal quarters (spring and summer months)[44](index=44&type=chunk) [Property and Casualty Insurance Operating Segment](index=4&type=section&id=Property%20and%20Casualty%20Insurance%20Operating%20Segment) This segment handles U-Haul's insurance claims and underwrites protection packages, contributing **1.7%** of net revenue - The Property and Casualty Insurance segment provides loss adjusting and claims handling for **U-Haul** and underwrites protection packages for **U-Haul** customers[45](index=45&type=chunk) - Net revenue from this segment was approximately **1.7%** of consolidated net revenue in fiscal **2023**[46](index=46&type=chunk) [Life Insurance Operating Segment](index=4&type=section&id=Life%20Insurance%20Operating%20Segment) This segment sells life, Medicare supplement, and annuity products to seniors, accounting for **3.4%** of net revenue - The Life Insurance segment sells life insurance, Medicare supplement insurance, annuities, and other related products, primarily targeting the senior market[47](index=47&type=chunk) - Net revenue from this segment was approximately **3.4%** of consolidated net revenue in fiscal **2023**[47](index=47&type=chunk) [Human Capital](index=4&type=section&id=Human%20Capital) U-Haul's human capital strategy focuses on employee wellness, development, and community engagement for its **35,100** staff - As of March 31, 2023, **U-Haul** employed approximately **33,100** people in the United States and **2,000** in Canada, with **99%** in Moving and Storage and **51%** full-time[49](index=49&type=chunk) - Employee benefits include medical, dental, vision, wellness programs (**Healthier You**, **You Matter**), paid time off, and financial benefits like an Employee Stock Ownership Plan (**ESOP**) and **401(k)**[52](index=52&type=chunk)[53](index=53&type=chunk) - The company promotes life-long personal and professional development through **U-Haul** University courses and a tuition reimbursement program[55](index=55&type=chunk) [Sales and Marketing](index=5&type=section&id=Sales%20and%20Marketing) U-Haul promotes its brand through direct marketing and digital platforms, driving transaction volume via online systems - **U-Haul** promotes brand awareness through direct marketing (web-based initiatives, print, social media, TV commercials) and co-marketing with independent dealers[57](index=57&type=chunk) - The marketing plan focuses on improving ease of use and economy of rental equipment, enhancing retail centers, and expanding capabilities of **U-Haul®** websites and the **U-Haul®** app[58](index=58&type=chunk) - Online reservation and sales systems (**uhaul.com®** and **1-800-GO-U-HAUL**) are major drivers of customer lead sources and rental transaction volume[59](index=59&type=chunk) [Competition](index=5&type=section&id=Competition) U-Haul faces intense competition in truck rental, self-storage, and insurance markets based on cost, convenience, and services - The truck rental industry is highly competitive, with principal factors being convenience, equipment quality, breadth of services, and total cost. Major national competitors include **Avis Budget Group, Inc.** and **Penske Truck Leasing**[60](index=60&type=chunk) - The self-storage market is large and fragmented, with competition based on convenience, cleanliness, security, and price. Key competitors include **Public Storage Inc.**, **CubeSmart**, **Extra Space Storage, Inc.**, and **Life Storage, Inc.**[61](index=61&type=chunk) - The insurance industry is highly competitive, with **U-Haul's** insurance companies competing on price, product design, and services against firms with greater financial resources and broader product portfolios[62](index=62&type=chunk) [Financial Data of Segment and Geographic Areas](index=5&type=section&id=Financial%20Data%20of%20Segment%20and%20Geographic%20Areas) Financial data for operating segments and geographic areas is detailed in Notes **22** and **22A** of the Consolidated Financial Statements - Financial data for operating segments and geographic areas is provided in Note **22** and Note **22A** of the Notes to Consolidated Financial Statements[63](index=63&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=5&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) Annual Report contains forward-looking statements subject to risks and uncertainties, with no obligation to update except by law - The Annual Report contains forward-looking statements about future events and results, which are subject to risks and uncertainties[64](index=64&type=chunk) - Factors that could significantly affect results include economic conditions, capital expenditures, operational plans, legal positions, liquidity, and compliance with environmental laws[64](index=64&type=chunk) - The company assumes no obligation to update or revise any forward-looking statements, except as legally required[65](index=65&type=chunk) [Risk Factors](index=5&type=section&id=Item%201A.%20Risk%20Factors) U-Haul faces risks from operations, industry competition, financing, organizational structure, and legal/regulatory environment - Financial market conditions can adversely affect **U-Haul's** fleet rotation program, impacting funding for new equipment and resale values of used equipment[67](index=67&type=chunk)[69](index=69&type=chunk) - The company relies on a limited number of truck manufacturers (primarily **Ford** and **General Motors**), exposing it to supply chain issues and potential cost increases[70](index=70&type=chunk)[71](index=71&type=chunk) - Regulatory changes favoring electric, autonomous, connected, and shared vehicles could negatively impact **U-Haul's** business model, requiring costly infrastructure upgrades and potentially limiting long-distance moving services[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk) - **U-Haul** is highly dependent on automated systems and the Internet, making it vulnerable to disruptions, cyber-attacks, and data breaches, which could lead to operational issues, reputational damage, and legal liabilities[79](index=79&type=chunk)[80](index=80&type=chunk)[82](index=82&type=chunk) [Risks Related to our Business and Operations](index=5&type=section&id=Risks%20Related%20to%20our%20Business%20and%20Operations) Risks include financial market impacts on fleet, reliance on manufacturers, electric vehicle regulations, liability, and cybersecurity - The fleet rotation program, funded internally and externally, is vulnerable to financial market conditions, which could limit financing and decrease used equipment resale values[67](index=67&type=chunk)[69](index=69&type=chunk) - Dependence on a few truck manufacturers (**Ford**, **GM**) creates risks from their supply chain issues, financial difficulties, or regulatory changes, potentially increasing acquisition costs or impacting supply[70](index=70&type=chunk)[71](index=71&type=chunk) - Regulatory changes favoring electric/autonomous vehicles pose challenges for infrastructure, repair capabilities, and customer service for long-distance moves[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk) - High dependence on internet-based automated systems (reservations, payments) exposes the company to risks from natural disasters, cyber-attacks, and data breaches, potentially causing operational disruptions and reputational damage[79](index=79&type=chunk)[80](index=80&type=chunk)[82](index=82&type=chunk) [Risks Related to our Industry](index=6&type=section&id=Risks%20Related%20to%20our%20Industry) Industry risks include intense competition, economic downturns, inflation, and the importance of **A.M. Best** ratings for insurance - The truck rental industry is highly competitive, with aggressive pricing from competitors potentially impacting **U-Haul's** financial results and market share[86](index=86&type=chunk)[87](index=87&type=chunk) - The self-storage industry is fragmented and competitive, with factors like location, cleanliness, security, and price affecting occupancy and rental rates[88](index=88&type=chunk) - Economic conditions, including inflation and credit market tightening, can reduce consumer spending, increase business costs, and limit access to favorable financing terms[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) - **A.M. Best** financial strength ratings are critical for the life insurance business; failure to maintain or improve ratings could adversely affect business plans[93](index=93&type=chunk) [Risks Related to our Financings](index=7&type=section&id=Risks%20Related%20to%20our%20Financings) High leverage (**$6,143.4 million** debt) impacts debt payments, operational flexibility, and access to additional financing Total Debt and Operating Lease Liabilities (March 31, 2023) | Category | Amount (Millions) | | :----------------------- | :---------------- | | Total Debt Outstanding | $6,143.4 | | Operating Lease Liabilities | $58.4 | - High leverage could limit the company's ability to make debt and lease payments, reduce flexibility in business planning, restrict access to additional financing, and create a competitive disadvantage[94](index=94&type=chunk) [Risks Related to our Organization](index=7&type=section&id=Risks%20Related%20to%20our%20Organization) Majority stockholder influence, 'controlled company' status, and potential Series N Non-Voting Common Stock price volatility are risks - **Willow Grove Holdings LP** and the **Shoen** family own approximately **50.1%** of Voting Common Stock, giving them significant influence over company decisions[95](index=95&type=chunk) - **U-Haul** is a 'controlled company' under **NYSE** standards, allowing it to opt out of certain corporate governance requirements, though it has not yet made such elections[96](index=96&type=chunk) - The recent **9-for-1** stock dividend of Series N Non-Voting Common Stock (**UHAL.B**) may result in volatile trading prices and uncertainty about the development of a liquid trading market[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) [Risks Related to Legal, Regulatory and Compliance](index=8&type=section&id=Risks%20Related%20to%20Legal,%20Regulatory%20and%20Compliance) Environmental laws, transportation regulations, carbon taxes, and state insurance department oversight pose significant compliance risks - Compliance with environmental laws and regulations (air, land, water, hazardous substances) affects the business, with potential liabilities for cleanup costs and increasing stringency in the future[101](index=101&type=chunk)[102](index=102&type=chunk) - The truck, trailer, and **U-Box** rental businesses are subject to broad regulatory powers by transportation and environmental agencies in the U.S. and Canada[103](index=103&type=chunk) - Potential federal and state regulations on carbon emissions or carbon-based taxes could significantly increase operating expenses and negatively impact operating margins[104](index=104&type=chunk)[105](index=105&type=chunk) - Insurance companies are heavily regulated by state insurance departments, with changes in laws potentially increasing costs, inhibiting new sales, or limiting rate increases[107](index=107&type=chunk) [General Risk Factors](index=8&type=section&id=General%20Risk%20Factors) Terrorist attacks could negatively impact operations, profitability, and reputation, potentially involving rental equipment - Terrorist attacks could negatively impact operations and profitability, potentially damaging facilities or involving rental equipment, leading to liability and reputational damage[110](index=110&type=chunk)[111](index=111&type=chunk) [Unresolved Staff Comments](index=8&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) No unresolved staff comments to report - No unresolved staff comments[112](index=112&type=chunk) [Properties](index=8&type=section&id=Item%202.%20Properties) U-Haul owns extensive property, plant, and equipment for manufacturing, repair, rental, and storage across North America - The Company owns property, plant, and equipment for manufacturing, repair, and rental of **U-Haul®** equipment and storage space in the U.S. and Canada[113](index=113&type=chunk) - Operations include over **2,200 U-Haul®** retail centers (**494** managed for related parties), **11** manufacturing/assembly facilities, and **151** fixed-site repair facilities[115](index=115&type=chunk) [Legal Proceedings](index=9&type=section&id=Item%203.%20Legal%20Proceedings) Legal proceedings information is incorporated by reference to Note **19**, Contingencies, of the Consolidated Financial Statements - Legal proceedings information is detailed in Note **19**, Contingencies, of the Notes to Consolidated Financial Statements[116](index=116&type=chunk) [Mine Safety Disclosures](index=9&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to U-Haul Holding Company - Mine Safety Disclosures are not applicable[117](index=117&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=9&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) U-Haul's common stock (**UHAL**, **UHAL.B**) is listed on **NYSE**, with dividend policies and a performance graph comparing market indices - **U-Haul** Holding Company has two classes of common stock: Voting Common Stock (**UHAL**) and Series N Non-Voting Common Stock (**UHAL.B**), both listed on the **New York Stock Exchange**[119](index=119&type=chunk) - As of March 31, 2023, there were approximately **3,300** holders of record for Voting Common Stock and **3,400** for Non-Voting Common Stock[119](index=119&type=chunk) Common Stock Dividends Declared (Fiscal 2022-2023) | Declared Date | Per Share Amount (UHAL) | Per Share Amount (UHAL.B) | | :-------------- | :---------------------- | :------------------------ | | August 18, 2022 | $0.50 | - | | April 6, 2022 | $0.50 | - | | March 3, 2023 | - | $0.04 | | December 7, 2022| - | $0.04 | [Item 6.[Reserved]](index=10&type=section&id=Item%206.%5BReserved%5D) This item is reserved and contains no information - Item **6** is reserved[124](index=124&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=10&type=section&id=Item%207.Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) **MD&A** covers U-Haul's strategy, segments, accounting estimates, financial performance, liquidity, and fiscal **2024** outlook - The overall strategy is to maintain leadership in the North American 'do-it-yourself' moving and storage industry by providing a seamless and integrated supply chain[128](index=128&type=chunk) - The **MD&A** covers critical accounting estimates, results of operations, liquidity and capital resources, contractual obligations, and the fiscal **2024** outlook[125](index=125&type=chunk) [Overall Strategy](index=10&type=section&id=Overall%20Strategy) U-Haul's strategy is to maintain leadership in 'do-it-yourself' moving and storage through an integrated supply chain - The primary focus is to provide a wide selection of moving rental equipment, convenient self-storage facilities, portable moving and storage units, and related products and services[129](index=129&type=chunk) - Expansion of distribution and improved customer service are achieved by increasing equipment and storage unit availability, growing the independent dealer network, and utilizing Storage Affiliate and **Moving Help®** capabilities[129](index=129&type=chunk) - Property and Casualty Insurance focuses on providing and administering insurance to **U-Haul** and its customers, while Life Insurance aims for long-term capital growth through life, Medicare supplement, and annuity products[130](index=130&type=chunk) [Description of Operating Segments](index=10&type=section&id=Description%20of%20Operating%20Segments) U-Haul's three segments focus on expanding dealer networks, enhancing protection packages, and serving the senior market - The Moving and Storage segment focuses on expanding its dealer network and selection/availability of rental equipment[134](index=134&type=chunk) - Property and Casualty Insurance aims to increase penetration of protection packages like **Safemove®** and **Safestor®**[139](index=139&type=chunk) - Life Insurance provides life and health insurance products primarily to the senior market[140](index=140&type=chunk) [Cybersecurity Incident](index=11&type=section&id=Cybersecurity%20Incident) A data security incident (Nov **2021**-Apr **2022**) led to unauthorized access of customer data and subsequent class action lawsuits - A data security incident occurred between November 5, 2021, and April 8, 2022, involving unauthorized access to customer contracts[141](index=141&type=chunk) - Compromised data included customers' names, dates of birth, and driver's license or state identification numbers; financial, payment processing, or email systems were not involved[141](index=141&type=chunk) - Multiple class action lawsuits related to the incident have been consolidated and will be vigorously defended by the Company[142](index=142&type=chunk) [Critical Accounting Estimates](index=11&type=section&id=Critical%20Accounting%20Estimates) Critical estimates include asset recoverability, insurance reserves, investment impairment, and income taxes, impacted by **ASU 2018-12** - Critical accounting estimates include recoverability of property, plant and equipment, adequacy of insurance reserves, impairment of investments, and income taxes[144](index=144&type=chunk)[145](index=145&type=chunk) - The valuation of policy reserves for life insurance and claims for property and casualty insurance involves complex actuarial estimates and assumptions[146](index=146&type=chunk)[149](index=149&type=chunk) - **ASU 2018-12** will significantly impact the measurement and disclosure of long-duration insurance contracts, requiring annual updates to cash flow assumptions and quarterly updates to discount rates, with effects recorded in earnings and **AOCI**[374](index=374&type=chunk)[376](index=376&type=chunk) [Recoverability of Property, Plant and Equipment](index=11&type=section&id=Recoverability%20of%20Property,%20Plant%20and%20Equipment) Asset recoverability is assessed by comparing cash flows to carrying amounts, with depreciation increasing if residual values fall - Recoverability is assessed by comparing projected undiscounted net cash flows against carrying amounts, considering used vehicle market trends and estimated useful lives[145](index=145&type=chunk) - Reductions in estimated residual values or useful lives of assets will lead to an increase in depreciation expense[145](index=145&type=chunk) [Insurance Reserves](index=11&type=section&id=Insurance%20Reserves) Life and P&C insurance reserves are based on complex actuarial estimates, regularly reviewed for adequacy and economic conditions - Life insurance policy benefits are estimated using net premium valuation and assumptions on mortality, morbidity, policy lapses, asset yields, and interest rates[146](index=146&type=chunk) - Property and Casualty Insurance reserves are management's best approximation of future payments, based on past claims experience, current trends, and social/economic conditions, including case reserves and **IBNR** losses[146](index=146&type=chunk) - Reserve adequacy is regularly reviewed, considering claimant longevity, cost trends, reporting practices, environmental factors, and future economic conditions[150](index=150&type=chunk)[162](index=162&type=chunk) [Impairment of Investments](index=12&type=section&id=Impairment%20of%20Investments) A valuation allowance for credit losses is recognized in earnings, with a **$2.0 million** net impairment charge in fiscal **2023** - A valuation allowance for credit losses is recognized in earnings under the current expected credit loss model[152](index=152&type=chunk) - If a debt security is intended to be sold or likely required to be sold before recovery, it is written down to fair value, with the write-down charged against the allowance for credit losses[152](index=152&type=chunk) - A net impairment charge of **$2.0 million** was recorded in fiscal **2023**[153](index=153&type=chunk) [Income Taxes](index=12&type=section&id=Income%20Taxes) Consolidated tax returns are subject to periodic review, with audit outcomes potentially impacting financial results - **U-Haul** Holding Company files a consolidated tax return with all its legal subsidiaries[154](index=154&type=chunk) - Tax returns are periodically reviewed by taxing authorities, and audit outcomes could materially impact financial results[154](index=154&type=chunk) [Recent Accounting Pronouncements](index=12&type=section&id=Recent%20Accounting%20Pronouncements) Further information on recent accounting pronouncements is available in Note **3**, Accounting Policies - Details on recent accounting pronouncements are provided in Note **3**, Accounting Policies, of the Notes to Consolidated Financial Statements[155](index=155&type=chunk) [Results of Operations](index=12&type=section&id=Results%20of%20Operations) Consolidated revenues increased to **$5,864.7 million** in fiscal **2023**, while earnings from operations decreased to **$1,444.1 million** Consolidated Revenue Summary (Fiscal 2023 vs. 2022) | Revenue Line Item | Fiscal 2023 (Thousands) | Fiscal 2022 (Thousands) | Change (Thousands) | | :----------------------------------------- | :---------------------- | :---------------------- | :----------------- | | Self-moving equipment rentals | $3,877,917 | $3,958,807 | $(80,890) | | Self-storage revenues | $744,492 | $617,120 | $127,372 | | Self-moving & self-storage products/service sales | $357,286 | $351,447 | $5,839 | | Life insurance premiums | $99,149 | $111,027 | $(11,878) | | Property & casualty insurance premiums | $93,209 | $86,518 | $6,691 | | Net investment & interest income | $176,679 | $148,261 | $28,418 | | Other revenue | $478,886 | $431,373 | $47,513 | | **Consolidated Revenue** | **$5,864,691** | **$5,739,747** | **$124,944** | Consolidated Earnings from Operations (Fiscal 2023 vs. 2022) | Metric | Fiscal 2023 (Millions) | Fiscal 2022 (Millions) | Change (Millions) | | :------------------------- | :--------------------- | :--------------------- | :---------------- | | Earnings from operations | $1,444.1 | $1,645.0 | $(200.9) | | Net earnings available to common stockholders | $923.0 | $1,123.3 | $(200.3) | - Total costs and expenses increased by **$325.8 million** in fiscal **2023**, driven by a **$132.9 million** increase in rental fleet repair costs and a **$97.8 million** increase in personnel costs due to a **12%** average headcount increase[163](index=163&type=chunk) [U-Haul Holding Company and Consolidated Subsidiaries (Fiscal 2023 Compared with Fiscal 2022)](index=12&type=section&id=U-Haul%20Holding%20Company%20and%20Consolidated%20Subsidiaries%20(Fiscal%202023%20Compared%20with%20Fiscal%202022)) Consolidated revenues increased by **$124.9 million**, driven by self-storage, while earnings from operations decreased by **$200.9 million** Consolidated Revenue Changes (Fiscal 2023 vs. 2022) | Revenue Category | Change (Millions) | | :---------------------------------------- | :---------------- | | Self-moving equipment rentals | $(80.9) | | Self-storage revenues | $127.4 | | Self-moving & self-storage products/service sales | $5.8 | | Life insurance premiums | $(11.9) | | Property & casualty insurance premiums | $6.7 | | Net investment & interest income | $28.4 | | Other revenue (U-Box program) | $47.5 | - Earnings from operations decreased to **$1,444.1 million** in fiscal **2023** from **$1,645.0 million** in fiscal **2022**[165](index=165&type=chunk) - Interest expense increased by **$56.6 million** to **$224.0 million** in fiscal **2023**, driven by an **$871.6 million** increase in average outstanding debt and a higher average cost of debt[165](index=165&type=chunk) Earnings Per Share (Fiscal 2023 vs. 2022) | Stock Type | Fiscal 2023 | Fiscal 2022 | | :------------------------- | :---------- | :---------- | | Voting Common Stock (Basic & Diluted) | $5.54 | $7.08 | | Non-Voting Common Stock (Basic & Diluted) | $4.62 | $5.58 | [Moving and Storage (Fiscal 2023 Compared with Fiscal 2022)](index=13&type=section&id=Moving%20and%20Storage%20(Fiscal%202023%20Compared%20with%20Fiscal%202022)) Segment revenues rose by **$169.4 million** due to self-storage growth, but operating expenses increased by **$345.7 million** Moving and Storage Revenue Changes (Fiscal 2023 vs. 2022) | Revenue Category | Fiscal 2023 (Thousands) | Fiscal 2022 (Thousands) | Change (Thousands) | | :---------------------------------------- | :---------------------- | :---------------------- | :----------------- | | Self-moving equipment rentals | $3,882,620 | $3,963,535 | $(80,915) | | Self-storage revenues | $744,492 | $617,120 | $127,372 | | Self-moving & self-storage products/service sales | $357,286 | $351,447 | $5,839 | | Net investment & interest income | $70,992 | $3,135 | $67,857 | | Other revenue (U-Box program) | $475,251 | $427,836 | $47,415 | | **Total Moving and Storage Revenue** | **$5,567,714** | **$5,398,267** | **$169,447** | - Self-storage revenues increased by **$127.4 million**, with a **14%** (**63,800 units**) increase in average monthly occupied units and a **9%** increase in average revenue per occupied square foot[170](index=170&type=chunk) - The segment added approximately **6.0 million net rentable square feet** in fiscal **2023**, a **13%** increase, comprising **1.1 million square feet** from acquisitions and **4.9 million** from new development[171](index=171&type=chunk) - Operating expenses increased by **$345.7 million**, driven by a **$132.9 million** rise in rental fleet repair costs and a **$97.8 million** increase in personnel costs (**12%** headcount increase)[174](index=174&type=chunk) [Property and Casualty Insurance (2022 Compared with 2021)](index=14&type=section&id=Property%20and%20Casualty%20Insurance%20(2022%20Compared%20with%202021)) Net premiums increased to **$96.2 million**, but pretax earnings decreased to **$36.6 million** due to lower investment income Property and Casualty Insurance Financials (2022 vs. 2021) | Metric | 2022 (Millions) | 2021 (Millions) | Change (Millions) | | :--------------------------- | :-------------- | :-------------- | :---------------- | | Net Premiums | $96.2 | $89.7 | $6.5 | | Net Investment & Interest Income | $7.3 | $25.4 | $(18.1) | | Pretax Earnings from Operations | $36.6 | $49.8 | $(13.2) | - The decrease in net investment income was mainly due to a **$16.6 million** decrease in the valuation of unaffiliated common stock[177](index=177&type=chunk) - Benefits and losses expenses decreased by **$0.9 million** due to favorable loss experience[178](index=178&type=chunk) [Life Insurance (2022 Compared with 2021)](index=14&type=section&id=Life%20Insurance%20(2022%20Compared%20with%202021)) Net premiums decreased to **$99.1 million**, and pretax earnings fell to **$12.5 million**, impacted by lower sales and investment losses Life Insurance Financials (2022 vs. 2021) | Metric | 2022 (Millions) | 2021 (Millions) | Change (Millions) | | :--------------------------- | :-------------- | :-------------- | :---------------- | | Net Premiums | $99.1 | $111.0 | $(11.9) | | Net Investment Income | $102.4 | $123.8 | $(21.4) | | Benefits & Losses Incurred | $144.0 | $164.2 | $(20.2) | | Pretax Earnings from Operations | $12.5 | $19.1 | $(6.6) | - Net premiums decreased due to lower sales of single premium life products and policy decrements in Medicare supplement[180](index=180&type=chunk) - Net investment income was impacted by a **$12.6 million** realized loss on derivatives and a **$6.5 million** realized loss on bonds[181](index=181&type=chunk) - Benefits and losses decreased due to lower death claims (related to **COVID-19**) and fewer Medicare supplement policies in force[182](index=182&type=chunk) [Liquidity and Capital Resources](index=14&type=section&id=Liquidity%20and%20Capital%20Resources) U-Haul has sufficient liquidity, but cash decreased to **$2,060.5 million**, with significant capital expenditures planned for **2024** Cash and Cash Equivalents (March 31) | Year | Amount (Millions) | | :--- | :---------------- | | 2023 | $2,060.5 | | 2022 | $2,704.1 | Consolidated Cash Flows (Fiscal Years) | Cash Flow Activity | Fiscal 2023 (Thousands) | Fiscal 2022 (Thousands) | Fiscal 2021 (Thousands) | | :--------------------------------- | :---------------------- | :---------------------- | :---------------------- | | Net cash provided by operating activities | $1,729,610 | $1,946,235 | $1,535,395 | | Net cash used by investing activities | $(2,421,385) | $(1,867,176) | $(1,129,529) | | Net cash provided by financing activities | $59,795 | $1,433,155 | $287,353 | - Net cash provided by operating activities decreased by **$216.6 million** due to reduced net earnings and federal income tax payments[189](index=189&type=chunk) - Net cash used in investing activities increased by **$554.2 million**, primarily due to a **$587.4 million** increase in purchases of property, plant, and equipment[190](index=190&type=chunk) [Liquidity and Capital Resources and Requirements of Our Operating Segments](index=15&type=section&id=Liquidity%20and%20Capital%20Resources%20and%20Requirements%20of%20Our%20Operating%20Segments) Moving and Storage plans significant reinvestment in fleet and real estate, funded by debt, lease financing, and operations - Moving and Storage plans to reinvest approximately **$685 million** (net of sales) in its rental equipment fleet in fiscal **2024**, funded by debt, lease financing, and operations[192](index=192&type=chunk) - Real estate capital expenditures for self-storage acquisitions and development are expected to remain high in fiscal **2024**, funded by internally generated funds, corporate debt, and borrowings against existing properties[193](index=193&type=chunk) Net Capital Expenditures (Moving and Storage, Fiscal Years) | Category | Fiscal 2023 (Thousands) | Fiscal 2022 (Thousands) | Fiscal 2021 (Thousands) | | :-------------------------------------- | :---------------------- | :---------------------- | :---------------------- | | Purchases of rental equipment | $1,298,955 | $1,061,439 | $870,106 | | Purchases of real estate, construction & renovations | $1,341,417 | $1,004,192 | $505,112 | | Other capital expenditures | $86,595 | $70,906 | $54,780 | | Less: Sales of property, plant & equipment | $(701,331) | $(623,235) | $(537,484) | | **Net capital expenditures** | **$2,025,636** | **$1,513,302** | **$903,991** | - Life Insurance's stockholders' equity decreased significantly in **2022** due to interest rate changes, and a statutory net loss in **2022** means no dividends can be distributed in calendar year **2023**[198](index=198&type=chunk) [Cash Provided from Operating Activities by Operating Segments](index=15&type=section&id=Cash%20Provided%20from%20Operating%20Activities%20by%20Operating%20Segments) Moving and Storage operating cash decreased by **$229.6 million**, while insurance segments saw increases due to timing - Moving and Storage's net cash from operating activities decreased by **$229.6 million** in fiscal **2023**, mainly due to reduced net earnings and federal income tax payments[200](index=200&type=chunk) - Property and Casualty Insurance's net cash from operating activities increased to **$36.2 million** in **2022**, from **$31.2 million** in **2021**, due to intercompany balances and payables timing[201](index=201&type=chunk) - Life Insurance's net cash from operating activities increased to **$99.8 million** in **2022**, from **$91.8 million** in **2021**, primarily due to an increase in accounts payable[203](index=203&type=chunk) [Liquidity and Capital Resources - Summary](index=16&type=section&id=Liquidity%20and%20Capital%20Resources%20-%20Summary) U-Haul maintains significant cash and liquidity, expects **$366 million** in tax refunds, and uses asset-backed debt financing - The company expects approximately **$366 million** in federal income tax refunds from **NOL** carrybacks, with **$243 million** already received[206](index=206&type=chunk) - Borrowing strategy focuses on asset-backed financing and rental equipment leases, with a goal to ladder maturities and fix interest rates[207](index=207&type=chunk) - As of March 31, 2023, **$465.0 million** in borrowing capacity was available under existing credit facilities[207](index=207&type=chunk) [Contractual Obligations and Commercial Commitments](index=16&type=section&id=Contractual%20Obligations%20and%20Commercial%20Commitments) Total contractual obligations were **$12,000.7 million** as of March 31, 2023, excluding **$75.8 million** in uncertain tax liabilities Total Contractual Obligations (as of March 31, 2023) | Category | Total (Thousands) | | :------------------------------------- | :---------------- | | Notes and loans payable - Principal | $4,049,382 | | Notes and loans payable - Interest | $1,387,115 | | Revolving credit agreements - Principal | $615,000 | | Revolving credit agreements - Interest | $102,175 | | Finance leases - Principal | $223,205 | | Finance leases - Interest | $11,991 | | Finance liability - Principal | $1,255,763 | | Finance liability - Interest | $158,493 | | Operating lease liabilities | $103,956 | | Property and casualty obligations | $110,545 | | Life, health and annuity obligations | $3,624,456 | | Self-insurance accruals | $335,227 | | Post-retirement benefit liability | $23,428 | | **Total contractual obligations** | **$12,000,736** | - **ASC 740** - Income Taxes liabilities and interest of **$75.8 million** are not included due to uncertainty surrounding ultimate settlements[213](index=213&type=chunk) [Fiscal 2024 Outlook](index=16&type=section&id=Fiscal%202024%20Outlook) Fiscal **2024** focus includes increasing rental volume, expanding storage, continuing **U-Box** investment, and managing inflation - Fiscal **2024** focus for **U-Move®** program includes increasing transaction volume, improving pricing, product, and utilization for self-moving equipment rentals[214](index=214&type=chunk) - Investment in the truck fleet is likely to increase in fiscal **2024**[214](index=214&type=chunk) - The storage business plans to complete current projects, increase occupancy, acquire new locations, and continue investing in the **U-Box®** program, with spending on acquisitions and new development likely to increase[216](index=216&type=chunk) - Inflationary pressures are expected to challenge the ability to maintain or improve operating margins[217](index=217&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=17&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) U-Haul is exposed to interest rate and foreign currency risks, using derivatives to mitigate interest rate exposure - **U-Haul** is exposed to financial market risks from changes in interest rates and currency exchange rates, using derivative financial instruments for mitigation[219](index=219&type=chunk) [Interest Rate Risk](index=17&type=section&id=Interest%20Rate%20Risk) Interest rate risk stems from variable rate debt, with **$615.0 million** unfixed; a **100 bps SOFR** increase impacts earnings by **$6.2 million** - Interest rate risk primarily relates to variable rate debt obligations, with interest rate swap agreements used to fix payments on certain **SOFR**-indexed debt[220](index=220&type=chunk) - As of March 31, 2023, **$615.0 million** of variable rate debt was not fixed through interest rate swaps[221](index=221&type=chunk) - A **100 basis point** increase in **SOFR** would decrease future earnings and cash flows by **$6.2 million** annually[221](index=221&type=chunk) Interest Rate Risk Sensitivity of Fixed Maturity Portfolio (March 31) | Change in Interest Rates (bps) | Market Value (2023, Thousands) | Market Value (2022, Thousands) | | :----------------------------- | :----------------------------- | :----------------------------- | | -300 | $3,100,972 | $3,262,844 | | -200 | $2,970,228 | $3,153,114 | | -100 | $2,839,624 | $2,992,011 | | No change | $2,709,037 | $2,821,092 | | +100 | $2,578,654 | $2,650,410 | | +200 | $2,448,348 | $2,479,737 | | +300 | $2,318,149 | $2,309,224 | [Foreign Currency Exchange Rate Risk](index=17&type=section&id=Foreign%20Currency%20Exchange%20Rate%20Risk) Canadian operations (**5.0%** revenue) pose foreign currency risk, but a **10% USD** change is not material to net income - Foreign currency exchange rate risk is primarily from Canadian business, which accounted for approximately **5.0%** of revenue in fiscal **2023**[226](index=226&type=chunk) - A **10%** change in the U.S. dollar's value relative to the Canadian dollar is not considered material to net income, and this risk is typically not hedged[226](index=226&type=chunk) [Financial Statements and Supplementary Data](index=17&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Report of Independent Registered Public Accounting Firm and Consolidated Financial Statements are incorporated by reference - The Report of Independent Registered Public Accounting Firm and Consolidated Financial Statements, including notes and schedules, are incorporated by reference[227](index=227&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=17&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) No changes in or disagreements with accountants on accounting and financial disclosure to report - Not applicable[228](index=228&type=chunk) [Controls and Procedures](index=18&type=section&id=Item%209A.%20Controls%20and%20Procedures) Disclosure controls were ineffective due to material weaknesses in **IT** and **EPS** calculation, with remediation efforts underway - The **CEO** and **CFO** concluded that disclosure controls and procedures were not effective as of March 31, 2023, due to material weaknesses in internal control over financial reporting[231](index=231&type=chunk) - Material weaknesses identified include deficiencies in general information technology controls (program change management, user access, segregation of duties, cybersecurity) and financial reporting controls for earnings per share calculation[237](index=237&type=chunk)[238](index=238&type=chunk) - Remediation measures are being implemented, including formalizing **IT** policies, implementing new controls, and enhancing procedures for **EPS** calculation, with the redesigned **EPS** control operating as planned at year-end[239](index=239&type=chunk)[240](index=240&type=chunk) - The independent registered public accounting firm, **BDO USA, LLP**, also expressed an adverse opinion on the effectiveness of internal control over financial reporting as of March 31, 2023[242](index=242&type=chunk) [Other Information](index=19&type=section&id=Item%209B.%20Other%20Information) No other information to report under this item - Not applicable[249](index=249&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=19&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) No disclosures regarding foreign jurisdictions that prevent inspections - Not applicable[249](index=249&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=19&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the proxy statement - Information on directors, executive officers, and corporate governance is incorporated by reference from the **2023** proxy statement[251](index=251&type=chunk) - The company has a Code of Ethics for all directors, officers, and employees, posted on its investor relations website[252](index=252&type=chunk) [Executive Compensation](index=19&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation information is incorporated by reference from the definitive proxy statement - Executive compensation information is incorporated by reference from the proxy statement[253](index=253&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=19&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference from the proxy statement - Security ownership information is incorporated by reference from the proxy statement[253](index=253&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=19&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Related party transactions and director independence information is incorporated by reference from the definitive proxy statement - Information on related party transactions and director independence is incorporated by reference from the proxy statement[254](index=254&type=chunk) [Principal Accountant Fees and Services](index=19&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Principal accountant fees and services information is incorporated by reference from the proxy statement - Principal accountant fees and services information is incorporated by reference from the proxy statement[255](index=255&type=chunk) PART IV [Exhibits; Financial Statement Schedules](index=19&type=section&id=Item%2015.%20Exhibits%3B%20Financial%20Statement%20Schedules) This section lists financial statements, schedules, and various exhibits filed as part of the Annual Report on Form **10-K** - The section includes the Report of Independent Registered Public Accounting Firm and Consolidated Financial Statements (Balance Sheets, Statements of Operations, Comprehensive Income (Loss), Changes in Stockholders' Equity, and Cash Flows) with accompanying notes[256](index=256&type=chunk) - Financial statement schedules, such as Condensed Financial Information of **U-Haul** Holding Company and Valuation and Qualifying Accounts, are also filed[256](index=256&type=chunk) - Numerous exhibits are listed, including organizational documents, various supplemental indentures related to **U-Haul Investors Club**, management agreements, and employee benefit plans[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk) [Form 10-K Summary](index=25&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form **10-K** Summary is provided in this report - No Form **10-K** Summary is provided[269](index=269&type=chunk) [Report of Independent Registered Public Accounting Firm](index=25&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) **BDO USA, LLP** issued an unqualified opinion on financials but an adverse opinion on internal controls due to material weaknesses - **BDO USA, LLP** issued an unqualified opinion on the consolidated financial statements for the period ended March 31, 2023[269](index=269&type=chunk) - An adverse opinion was expressed on the effectiveness of internal control over financial reporting as of March 31, 2023[270](index=270&type=chunk) - Critical audit matters included the valuation of Future Policy Benefits (**Oxford**), Reserve for Property & Casualty Losses and Loss Adjustment Expenses (**Repwest**), and Self-Insurance Reserves (**U-Haul**), all involving significant management judgment and actuarial estimates[275](index=275&type=chunk)[277](index=277&type=chunk)[279](index=279&type=chunk) [Consolidated Financial Statements](index=27&type=section&id=Consolidated%20Financial%20Statements) Audited consolidated financial statements show total assets of **$18,124.6 million** and net earnings of **$923.0 million** in fiscal **2023** Consolidated Balance Sheet Highlights (March 31) | Metric | 2023 (Thousands) | 2022 (Thousands) | | :----------------- | :--------------- | :--------------- | | Total Assets | $18,124,648 | $17,299,581 | | Total Liabilities | $11,596,313 | $11,347,089 | | Total Stockholders' Equity | $6,528,335 | $5,952,492 | Consolidated Statements of Operations Highlights (Years Ended March 31) | Metric | 2023 (Thousands) | 2022 (Thousands) | 2021 (Thousands) | | :----------------- | :--------------- | :--------------- | :--------------- | | Total Revenues | $5,864,691 | $5,739,747 | $4,541,985 | | Earnings from Operations | $1,444,106 | $1,644,997 | $961,147 | | Net Earnings | $922,998 | $1,123,286 | $610,856 | Consolidated Statements of Cash Flows Highlights (Years Ended March 31) | Cash Flow Activity | 2023 (Thousands) | 2022 (Thousands) | 2021 (Thousands) | | :--------------------------------- | :--------------- | :--------------- | :--------------- | | Net cash provided by operating activities | $1,729,610 | $1,946,235 | $1,535,395 | | Net cash used by investing activities | $(2,421,385) | $(1,867,176) | $(1,129,529) | | Net cash provided by financing activities | $59,795 | $1,433,155 | $287,353 | [Notes to Consolidated Financial Statements](index=30&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, financial instruments, segment info, critical estimates, and contingencies, including a cybersecurity incident - The financial statements are prepared in accordance with **GAAP**, with insurance subsidiaries consolidated on a calendar year basis into the company's fiscal year[300](index=300&type=chunk) - Critical accounting estimates include recoverability of property, plant and equipment, adequacy of insurance reserves, impairment of investments, and income taxes, all requiring significant management judgment[312](index=312&type=chunk) - **ASU 2018-12**, effective January 1, 2023, will significantly change the accounting for long-duration insurance contracts, impacting measurement of liabilities and amortization of deferred policy acquisition costs[374](index=374&type=chunk)[377](index=377&type=chunk) - A cybersecurity incident in **2021-2022** led to unauthorized access of customer personal data, resulting in class action lawsuits[507](index=507&type=chunk)[508](index=508&type=chunk) - The company has significant related party transactions, including management fees and lease expenses with entities controlled by major stockholders[516](index=516&type=chunk)[517](index=517&type=chunk)[518](index=518&type=chunk) [1. Basis of Presentation](index=30&type=section&id=1.Basis%20of%20Presentation) Financial statements are consolidated with a March 31 fiscal year, while insurance subsidiaries report on a December 31 calendar year - **U-Haul** Holding Company's fiscal year ends March 31, while its insurance subsidiaries' fiscal years end December 31, with consolidation on that basis[300](index=300&type=chunk) - Management believes this consolidation method does not materially affect the presentation of financial position or results of operations[300](index=300&type=chunk) [Note 2. Principles of Consolidation](index=30&type=section&id=Note%202.%20Principles%20of%20Consolidation) The company applies **ASC 810**, consolidating wholly-owned subsidiaries including **U-Haul International**, **Repwest**, and **Oxford Life** - The company applies **ASC 810** - Consolidation, consolidating **VIEs** where it is the primary beneficiary or entities where it holds a majority of voting rights[302](index=302&type=chunk)[305](index=305&type=chunk) - **U-Haul** Holding Company is the holding company for **U-Haul International, Inc.**, **Amerco Real Estate Company**, **Repwest Insurance Company**, and **Oxford Life Insurance Company**[306](index=306&type=chunk) - The three reportable segments are Moving and Storage, Property and Casualty Insurance, and Life Insurance[307](index=307&type=chunk) [Note 3. Accounting Policies](index=30&type=section&id=Note%203.%20Accounting%20Policies) This note outlines significant accounting policies, including estimates, investments, and the impact of **ASU 2018-12** on insurance contracts - Critical accounting policies involve difficult and subjective judgments, including consolidation principles, asset recoverability, insurance reserve adequacy, investment impairment, and income tax recognition[312](index=312&type=chunk) - Inventories are primarily valued using the last-in first-out (**LIFO**) method, comprising **94%** of total inventories as of March 31, 2023[325](index=325&type=chunk) - Property, plant, and equipment are stated at cost, with depreciation computed using straight-line or accelerated methods; gains/losses on personal property dispositions are netted against depreciation[327](index=327&type=chunk) - **ASU 2018-12** will require quarterly updates to discount rate assumptions for long-duration insurance contracts, with changes recorded in **AOCI**, and is expected to result in a **$110.0 million** to **$130.0 million** decrease to **AOCI** at transition[374](index=374&type=chunk)[376](index=376&type=chunk)[382](index=382&type=chunk) [4. Earnings Per Share](index=34&type=section&id=4.%20Earnings%20Per%20Share) **EPS** is calculated using the two-class method, allocating undistributed earnings **10%** to **UHAL** and **90%** to **UHAL.B** - Earnings per share are calculated using the two-class method, allocating undistributed earnings to Voting Common Stock (**10%**) and Non-Voting Common Stock (**90%**)[385](index=385&type=chunk)[386](index=386&type=chunk) Earnings Per Share Calculation (Years Ended March 31) | Metric | 2023 (Thousands) | 2022 (Thousands) | 2021 (Thousands) | | :---------------------------------------- | :--------------- | :--------------- | :--------------- | | Net earnings available to common stockholders | $922,998 | $1,123,286 | $610,856 | | Voting Common Stock dividends declared | $(19,608) | $(29,412) | $(49,019) | | Non-Voting Common Stock dividends declared | $(14,117) | – | – | | Undistributed earnings available to common stockholders | $889,273 | $1,093,874 | $561,837 | | Basic and diluted EPS of Voting Common Stock | $5.54 | $7.08 | $5.37 | | Basic and diluted EPS of Non-Voting Common Stock | $4.62 | $5.58 | $2.87 | [Note 5. Reinsurance Recoverables and Trade Receivables, Net](index=35&type=section&id=Note%205.%20Reinsurance%20Recoverables%20and%20Trade%20Receivables,%20Net) Reinsurance recoverables and trade receivables, net, totaled **$189.5 million**, with a **$3.8 million** allowance for credit losses Reinsurance Recoverables and Trade Receivables, Net (March 31) | Category | 2023 (Thousands) | 2022 (Thousands) | | :-------------------------------- | :--------------- | :--------------- | | Reinsurance recoverable | $42,362 | $50,586 | | Trade accounts receivable | $110,281 | $150,285 | | Accrued investment income | $29,553 | $28,689 | | Premiums and agents' balances | $4,075 | $1,650 | | Other receivables | $6,324 | $6,364 | | Less: Allowance for credit losses | $(3,789) | $(8,649) | | **Total** | **$189,498** | **$229,343** | - The allowance for expected credit losses on trade receivables was **$3.8 million** as of March 31, 2023, down from **$8.6 million** in **2022**[339](index=339&type=chunk) [Note 6. Investments](index=35&type=section&id=Note%206.%20Investments) Investments include fixed maturities and marketable equities (**$2,709.0 million** fair value), with a **$2.0 million** impairment charge Available-for-Sale Investments (Fair Value, March 31) | Category | 2023 (Thousands) | 2022 (Thousands) | | :---------------------------------------- | :--------------- | :--------------- | | U.S. treasury securities and government obligations | $344,676 | $135,093 | | U.S. government agency mortgage-backed securities | $27,231 | $41,805 | | Obligations of states and political subdivisions | $150,505 | $192,982 | | Corporate securities | $1,869,233 | $2,121,055 | | Mortgage-backed securities | $317,392 | $330,157 | | **Total Fixed Maturities** | **$2,709,037** | **$2,821,092** | | Common stocks | $39,375 | $46,212 | | Non-redeemable preferred stocks | $21,982 | $26,095 | | **Total Equity Investments** | **$61,357** | **$72,307** | Other Investments (Carrying Value, March 31) | Category | 2023 (Thousands) | 2022 (Thousands) | | :------------------------ | :--------------- | :--------------- | | Mortgage loans, net | $466,531 | $423,163 | | Short-term investments | $15,921 | $30,916 | | Real estate | $72,178 | $67,824 | | Policy loans | $10,921 | $10,309 | | Other equity investments | $9,989 | $11,543 | | **Total** | **$575,540** | **$543,755** | - A **$2.0 million** net impairment charge was reported in fiscal **2023** for available-for-sale securities[397](index=397&type=chunk) [Note 7. Other Assets](index=37&type=section&id=Note%207.%20Other%20Assets) Other assets totaled **$51.1 million**, primarily consisting of debt-related and real estate-related deposits Other Assets (March 31) | Category | 2023 (Thousands) | 2022 (Thousands) | | :----------------------- | :--------------- | :--------------- | | Deposits (debt-related) | $35,573 | $37,588 | | Deposits (real estate related) | $15,479 | $22,821 | | **Total** | **$51,052** | **$60,409**