What changed in U-Haul Holding Co /NV/'s 10-K — 2022 vs 2023
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Paragraph-level year-over-year comparison of U-Haul Holding Co /NV/'s 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.
+244 added−219 removedSource: 10-K (2023-06-02) vs 10-K (2022-05-25)
Top changes in U-Haul Holding Co /NV/'s 2023 10-K
244 paragraphs added · 219 removed · 190 edited across 7 sections
- Item 7. Management's Discussion & Analysis+115 / −107 · 87 edited
- Item 1A. Risk Factors+59 / −48 · 40 edited
- Item 1. Business+50 / −48 · 48 edited
- Item 7A. Quantitative and Qualitative Disclosures About Market Risk+10 / −8 · 8 edited
- Item 5. Market for Registrant's Common Equity+8 / −6 · 5 edited
Item 1. Business
Business — how the company describes what it does
48 edited+2 added−0 removed42 unchanged
Item 1. Business
Business — how the company describes what it does
48 edited+2 added−0 removed42 unchanged
2022 filing
2023 filing
Biggest changeSuch statements may include, but are not limited to, the risk associated with COVID-19 or similar events on system members or customers, impact on the economic environment or demand of our products and the cost and availability of debt and capital, estimates of capital expenditures, plans for future operations, products or services, financing needs and plans, our perceptions of our legal positions and anticipated outcomes of government investigations and pending litigation against us, liquidity and the availability of financial resources to meet our needs, goals and strategies, plans for new business, storage occupancy, growth rate assumptions, pricing, costs, and access to capital and leasing markets, the impact of our compliance with environmental laws and cleanup costs, our used vehicle disposition strategy, the sources and availability of funds for our rental equipment and self-storage expansion and replacement strategies and plans, our plan to expand our U-Haul storage affiliate program, that additional leverage can be supported by our operations and business, the availability of alternative vehicle manufacturers, our estimates of the residual values of our equipment fleet, our plans with respect to off-balance sheet arrangements, our plans to continue to invest in the U-Box ® program, the impact of interest rate and foreign currency exchange rate changes on our operations, the sufficiency of our capital resources, and the sufficiency of capital of our insurance subsidiaries as well as assumptions relating to the foregoing.
Biggest changeSuch statements may include, but are not limited to, the risk associated with COVID-19 or similar events on system members or customers; the impact of the economic environment on demand for our products and the cost and availability of debt and capital; estimates of capital expenditures; plans for future operations, products or services, financing needs, and strategies; our perceptions of our legal positions and anticipated outcomes of government investigations and pending litigation against us; liquidity and the availability of financial resources to meet our needs, goals and strategies; plans for new business, storage occupancy, growth rate assumptions, pricing, costs, and access to capital and leasing markets; the impact of our compliance with environmental laws and cleanup costs; our beliefs regarding our sustainability practices; our used vehicle disposition strategy; the sources and availability of funds for our rental equipment and self-storage expansion and replacement strategies and plans; our plan to expand our U-Haul ® storage affiliate program; that additional leverage can be supported by our operations and business; the availability of alternative vehicle manufacturers; the availability and economics of electric vehicles for our rental fleet; our estimates of the residual values of our equipment fleet; our plans with respect to off-balance sheet arrangements; our plans to continue to invest in the U-Box ® program; the impact of interest rate and foreign currency exchange rate changes on our operations; the sufficiency of our capital resources; the sufficiency of capital of our insurance subsidiaries; inflationary pressures that may challenge our ability to maintain or improve upon our operating margin; and expectations regarding the potential impact to our information technology infrastructure and on our financial performance and business operations of technology, cybersecurity or data security breaches, including any related costs, fines or lawsuits, and our ability to continue ongoing operations and safeguard the integrity of our information technology infrastructure, data, and employee, customer and vendor information, as well as assumptions relating to the foregoing.
A U-Box ® portable moving and storage unit is delivered to a location of our customer’s choosing either by the customers themselves through the use of a U-Box ® trailer, with the assistance of a Moving help program or by Company personnel.
A U-Box ® portable moving and storage unit is delivered to a location of our customer’s choosing either by the customers themselves through the use of a U-Box ® trailer, with the assistance of our Moving Help ® program, or by Company personnel.
Financial information for each of our operating segments is included in the Notes to Consolidated Financial Statements as part of Item 8: Financial Statements and Supplementary Data of this Annual Report on Form 10-K. 3 Moving and Storage Operating Segment Moving and Storage operating segment (“Moving and Storage”) consists of the rental of trucks, trailers, portable moving and storage units, specialty rental items and self-storage spaces primarily to the household mover as well as sales of moving supplies, towing accessories and propane.
Financial information for each of our operating segments is included in the Notes to Consolidated Financial Statements as part of Item 8: Financial Statements and Supplementary Data of this Annual Report on Form 10-K. 3 Moving and Storage Operating Segment Our Moving and Storage operating segment (“Moving and Storage”) consists of the rental of trucks, trailers, portable moving and storage units, specialty rental items and self-storage spaces primarily to the household mover as well as sales of moving supplies, towing accessories and propane.
Moving Help ® and U-Haul Storage Affiliates ® on uhaul.com are online marketplaces that connect consumers to independent Moving Help ® service providers and thousands of independent Self-Storage Affiliates. Our network of customer-rated Moving Help ® and affiliates provide pack and load help, cleaning help, self-storage and similar services all over the United States and Canada.
Moving Help ® and U-Haul Storage Affiliates ® on uhaul.com are online marketplaces that connect consumers to independent Moving Help ® service providers and thousands of independent Self-Storage Affiliates. Our network of customer-rated Moving Help ® and storage affiliates provide pack and load help, cleaning help, self-storage and similar services all over the United States and Canada.
Our largest competitors in the self-storage market are Public Storage Inc., Extra Space Storage, Inc., CubeSmart and Life Storage, Inc. 6 Insurance Operating Segments The insurance industry is highly competitive. In addition, the marketplace includes financial services firms offering both insurance and financial products. Some of the insurance companies are owned by stockholders and others are owned by policyholders.
Our largest competitors in the self-storage market are Public Storage Inc., CubeSmart, Extra Space Storage, Inc., and Life Storage, Inc. 6 Insurance Operating Segments The insurance industry is highly competitive. In addition, the marketplace includes financial services firms offering both insurance and financial products. Some of the insurance companies are owned by stockholders and others are owned by policyholders.
Continuing supply issues with our equipment manufacturers have slowed the number of new trucks we have been able to acquire this last year. In response, we have slowed the sale of trucks from our existing fleet. Within our truck and trailer rental operation, we are focused on expanding our independent dealer network to provide added convenience for our customers.
However, continuing supply issues with our equipment manufacturers have slowed the number of new trucks we have been able to acquire this last year. In response, we slowed the sale of trucks from our existing fleet. Within our truck and trailer rental operation, we are focused on expanding our independent dealer network to provide added convenience for our customers.
Our marketing plan focuses on maintaining our leadership position in the “do-it-yourself” moving and storage industry by continually improving the ease of use and economy of our rental equipment, by providing added convenience to our retail centers, through independent U-Haul dealers, and by expanding the capabilities of our U-Haul websites.
Our marketing plan focuses on maintaining our leadership position in the “do-it-yourself” moving and storage industry by continually improving the ease of use and economy of our rental equipment, by providing added convenience to our retail centers, through independent U-Haul dealers, and by expanding the capabilities of our U-Haul ® websites and U-Haul ® app.
Human Capital We work at never forgetting that our quality self-move, self-storage, and closely related services and products are meant to improve human lives and serve the do-it-yourself moving public. Our workforce is a reflection of, and as diverse as the customers we serve.
Human Capital We work at never forgetting that our quality self-move, self-storage, and closely related services and products are meant to improve human lives and serve the do-it-yourself moving public. We believe our workforce is a reflection of, and as diverse as the customers we serve.
These programs provide moving and towing customers with a damage waiver, cargo protection and medical and life insurance coverage. Safestor ® provides protection for storage customers from loss on their goods in storage. Safestor Mobile ® provides protection for customers stored belongings when using our U-Box ® portable moving and storage units.
These programs provide moving and towing customers with a damage waiver, cargo protection and medical and life insurance coverage. Safestor ® provides protection for storage customers from loss on their goods in storage. Safestor Mobile ® provides protection for customers’ stored belongings when using our U-Box ® portable moving and storage units.
We have numerous competitors throughout the United States and Canada who compete with us in the in-town market. The self-storage market is large and very fragmented. We believe the principal competitive factors in this industry are convenience of storage rental locations, cleanliness, security and price.
We have numerous competitors throughout the United States and Canada who compete with us in the in-town market. The self-storage market is large and fragmented. We believe the principal competitive factors in this industry are convenience of storage rental locations, cleanliness, security and price.
We consider the trademark “U-Haul ® ” to be of material importance to our business in addition, but not limited to, the U.S. trademarks and service marks “AMERCO ® ”, “eMove ® ”, “Gentle Ride Suspension SM ”, “In-Town ® ”, “Lowest Decks SM ”, “Moving made Easier ® ”, “Make Moving Easier ® ”, “Mom’s Attic ® ”, “Moving Help ® ”, “Moving Helper ® ”, “Safemove ® ”, “Safemove Plus ® ”, “Safestor ® ”, “Safestor Mobile ® ”, “Safetow ® ”, “U-Box ® ”, “uhaul.com ® ”, “U-Haul Investors Club ® ”, “U-Haul Truck Share ® ”, “U-Haul Truck Share 24/7 ® “ “U-Note ® ”, “WebSelfStorage ® ”, and “U-Haul SmartMobilityCenter ®” , among others, for use in connection with the moving and storage business.
We consider the trademark “U-Haul ® ” to be of material importance to our business in addition, but not limited to, the U.S. trademarks and service marks “AMERCO ® ”, “U-Haul Holding Company SM ”, “eMove ® ”, “Gentle Ride Suspension SM ”, “In-Town ® ”, “Lowest Decks SM ”, “Moving made Easier ® ”, “Make Moving Easier ® ”, “Mom’s Attic ® ”, “Moving Help ® ”, “Moving Helper ® ”, “Safemove ® ”, “Safemove Plus ® ”, “Safestor ® ”, “Safestor Mobile ® ”, “Safetow ® ”, “U-Box ® ”, “uhaul.com ® ”, “U-Haul Investors Club ® ”, “U-Haul Truck Share ® ”, “U-Haul Truck Share 24/7 ® “, “U-Note ® ”, “WebSelfStorage ® ”, and “U-Haul SmartMobilityCenter ®” , among others, for use in connection with the moving and storage business.
These initiatives include improving management of our rental equipment to provide our retail centers with the right type of rental equipment, at the right time and at the most convenient location for our customers, effectively marketing our broad line of self-moving related products and services, expanding accessibility to provide more convenience to our customers, and enhancing our ability to properly staff locations during our peak hours of operations by attracting and retaining “moonlighters” (part-time U-Haul ® system members with full-time jobs elsewhere) during our peak hours of operation.
These initiatives include expanding the capabilities of our U-Haul ® app, improving management of our rental equipment to provide our retail centers with the right type of rental equipment, at the right time and at the most convenient location for our customers, effectively marketing our broad line of self-moving related products and services, expanding accessibility to provide more convenience to our customers, and enhancing our ability to properly staff locations during our peak hours of operations by attracting and retaining “moonlighters” (part-time U-Haul ® system members with full-time jobs elsewhere) during our peak hours of operation.
Property and Casualty Insurance also underwrites components of the Safemove ® , Safetow ® , Safemove Plus ® , Safestore Mobile ® and Safestor ® protection packages to U-Haul customers. We attempt to price our products to be a good value to our customers.
Property and Casualty Insurance also underwrites components of the Safemove ® , Safetow ® , Safemove Plus ® , Safestor Mobile ® and Safestor ® protection packages to U-Haul customers. We attempt to price our products to be a good value to our customers.
We assume no obligation to update or revise any of the forward-looking statements, whether in response to new information, unforeseen events, changed circumstances or otherwise, except as required by law.
We assume no obligation to update or revise any of the forward-looking statements, whether in response to new information, unforeseen events, changed circumstances or otherwise, except as required by law. 7
Over half of all U-Move ® rental revenue originated from our operated centers. At our owned and operated retail stores, we are implementing new initiatives to improve customer service.
Over half of all U-Move ® rental revenue originated from our Company operated centers. At our owned and operated retail stores, we are implementing new initiatives to improve customer service.
To provide our self-move customers with added value, our rental trucks and trailers are designed with fuel efficiency in mind. Many of our trucks are fitted with fuel economy gauges, another tool that assists our customers in conserving fuel. To help make our rental equipment more reliable, we routinely perform extensive preventive maintenance and repairs.
To provide our self-move customers with added value, our rental trucks and trailers are designed with fuel efficiency in mind. Many of our trucks are equipped with fuel economy gauges, another tool that assists our customers in conserving fuel. To help make our rental equipment more reliable, we routinely perform extensive preventive maintenance and repairs.
The loading ramps on our trucks are the widest in the industry, which reduce the effort needed to move belongings. Our trucks are fitted with convenient, rub rails with tie downs on every interior wall. Our Gentle Ride Suspension SM helps our customers safely move delicate and prized possessions.
The loading ramps on our trucks are the widest in the industry, which reduces the effort needed to move belongings. Our trucks are fitted with convenient rub rails with tie downs on every interior wall. Our Gentle Ride Suspension SM helps our customers safely move delicate and prized possessions.
U-Haul ® has one of North America’s largest propane refilling networks, with over 1,200 locations providing this convenient service. We employ trained, certified personnel to refill propane cylinders and alternative fuel vehicles.
U-Haul ® has one of North America’s largest propane refilling networks, with nearly 1,200 locations providing this convenient service. We employ trained, certified personnel to refill propane cylinders and alternative fuel vehicles.
U-Haul ® maximizes vehicle utilization by managing distribution of the truck and trailer fleets among the over 2,100 Company-operated stores and nearly 21,100 independent dealers. Utilizing its proprietary reservations management system, our centers and dealers electronically report their inventory in real-time, which facilitates matching equipment to customer demand.
U-Haul ® maximizes vehicle utilization by managing distribution of the truck and trailer fleets among the over 2,200 Company-operated stores and nearly 21,300 independent dealers. Utilizing its proprietary reservations management system, our centers and dealers electronically report their inventory in real-time, which facilitates matching equipment to customer demand.
We also sell U-Haul ® brand boxes, tape and other moving and self-storage products and services to “do-it-yourself” moving and storage customers at all of our distribution outlets and through our uhaul.com ® website.
We also sell U-Haul ® brand boxes, tape and other moving and self-storage products and services to “do-it-yourself” moving and storage customers at all of our distribution outlets and through our uhaul.com ® website and mobile app.
U-Haul offers U-Haul Truck Share 24/7 ® to our entire network in the United States and Canada. This technological advancement allows our customers to rent equipment through the mobile device any time of the day without having to visit the counter. U-Haul currently has several U.S. and Canadian Patents pending on its U-Haul Truck Share 24/7 ® system.
U-Haul offers U-Haul Truck Share 24/7 ® to our entire network in the United States and Canada. This technological advancement allows our customers to rent equipment through a mobile device any time of the day without having to visit the counter. U-Haul currently has several U.S. and Canadian Patents granted or pending on its U-Haul Truck Share 24/7 ® system.
We call this area Mom’s Attic ® . Our distinctive trailers are also manufactured at these same U-Haul ® operated manufacturing and assembly facilities. These trailers are well suited to the low profile of many of today’s newly manufactured automobiles. Our engineering staff is committed to making our trailers easy to tow, safe, aerodynamic and fuel efficient.
We call this area Mom’s Attic ® . Our distinctive trailers are also manufactured at these same U-Haul ® operated manufacturing and assembly facilities. These trailers are well suited to the low profile of many of today’s newly manufactured automobiles including electric vehicles. Our engineering staff is committed to making our trailers easy to tow, safe, aerodynamic and fuel efficient.
Benefits We focus on our system members’ wellness over the course of their life, from physical and emotional to financial. Our health benefit program provides medical, dental and vision benefits. Participation in the health benefit program also includes access to our Healthier You wellness program that offers system members the tools necessary to live a healthier lifestyle.
Benefits We focus on our system members’ wellness over the course of their life, from physical and emotional to financial. Our health benefit program provides medical, dental and vision benefits. Participation in the health benefit program also includes access to our Healthier You wellness program that offers system members tools to enable them to live a healthier lifestyle.
Oxford Life Insurance Company (“Oxford”), our life insurance subsidiary, sells life insurance, Medicare supplement insurance, annuities and other related products to the senior market. Available Information AMERCO ® and U-Haul ® are each incorporated in Nevada. The internet address for U-Haul is uhaul.com.
Oxford Life Insurance Company (“Oxford”), our life insurance subsidiary, sells life insurance, Medicare supplement insurance, annuities and other related products to the senior market. Available Information U-Haul Holding Company SM and U-Haul ® are each incorporated in Nevada. The internet address for U-Haul is uhaul.com.
We rent our distinctive orange and white U-Haul ® trucks and trailers as well as offer self-storage units through a network of over 2,100 Company-operated retail moving stores and nearly 21,100 independent U-Haul ® dealers.
We rent our distinctive orange and white U-Haul ® trucks and trailers as well as offer self-storage units through a network of over 2,200 Company-operated retail moving stores and nearly 21,300 independent U-Haul ® dealers.
Life Insurance Operating Segment Life Insurance provides life and health insurance products primarily to the senior market through the direct writing and reinsuring of life insurance, Medicare supplement and annuity policies. Net revenue from Life Insurance was approximately 4.1%, 5.0% and 6.0% of consolidated net revenue in fiscal 2022, 2021 and 2020, respectively.
Life Insurance Operating Segment Life Insurance provides life and health insurance products primarily to the senior market through the direct writing and reinsuring of life insurance, Medicare supplement and annuity policies. Net revenue from Life Insurance was approximately 3.4%, 4.1% and 5.0% of consolidated net revenue in fiscal 2023, 2022 and 2021, respectively.
The Company operates over 2,100 retail locations, 11 manufacturing and assembly facilities, 149 fixed-site repair facilities, a distribution center and our corporate offices. We hire system members from the communities in which we are located and prefer to promote from within our team.
The Company operates over 2,200 retail locations, 11 manufacturing and assembly facilities, 151 fixed-site repair facilities, a distribution center and our corporate offices. We hire system members from the communities in which we are located and prefer to promote from within our team.
Community We value our relationship with the communities in which we do business. We offer community outreach through volunteer opportunities for our system members, to in-kind donations of equipment, products, and services.
Community We value our relationship with the communities in which we do business. We offer community outreach through volunteer opportunities for our system members, as well as in-kind donations of equipment, products, and services.
In addition to towing U-Haul ® equipment, these hitching and towing systems can tow jet skis, motorcycles, boats, campers and horse trailers. Each year, millions of customers visit our locations for expertise on complete towing systems, trailer rentals and the latest in towing accessories.
In addition to towing U-Haul ® equipment, these hitching and towing systems can tow jet skis, motorcycles, boats, campers and toy haulers. Each year, millions of customers visit our locations for expertise on complete towing systems, trailer rentals and the latest in towing accessories.
U-Haul ® operates nearly 876,000 rentable storage units, comprising 75.1 million square feet of rentable storage space with locations in 50 states and 10 Canadian provinces. Our owned and managed self-storage facility locations range in size up to 309,000 square feet of storage space, with individual storage units in sizes ranging from 6 square feet to over 1,000 square feet.
U-Haul ® operates nearly 949,000 rentable storage units, comprising 81.2 million square feet of rentable storage space with locations in 50 states and 10 Canadian provinces. Our owned and managed self-storage facility locations range in size up to 309,000 square feet of storage space, with individual storage units in sizes ranging from 6 square feet to over 1,000 square feet.
Operations are conducted under the registered trade name U-Haul ® throughout the United States and Canada. Net revenue from Moving and Storage was approximately 94.0%, 93.1% and 91.8% of consolidated net revenue in fiscal 2022, 2021 and 2020, respectively. The total number of rental trucks in the fleet increased from fiscal 2022.
Operations are conducted under the registered trade name U-Haul ® throughout the United States and Canada. Net revenue from Moving and Storage was approximately 94.9%, 94.0% and 93.1% of consolidated net revenue in fiscal 2023, 2022 and 2021, respectively. The total number of rental trucks in the fleet increased from fiscal 2023.
On AMERCO’s investor relations website, amerco.com, we post the following filings as soon as practicable after they are electronically filed with or furnished to the United States Securities and Exchange Commission (“SEC”): our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K, proxy statements related to meetings of our stockholders, and any amendments to those reports or statements filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
On U-Haul Holding Company’s investor relations website, investors.uhaul.com, we post the following filings as soon as practicable after they are electronically filed with or furnished to the United States Securities and Exchange Commission (“SEC”): our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K, proxy statements related to meetings of our stockholders, and any amendments to those reports or statements filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
The business plan for Property and Casualty Insurance includes offering property and casualty products in other U-Haul related programs. Net revenue from Property and Casualty Insurance was approximately 1.9%, 1.9% and 2.2% of consolidated net revenue in fiscal 2022, 2021 and 2020, respectively.
The business plan for Property and Casualty Insurance includes offering property and casualty products in other U-Haul related programs. Net revenue from Property and Casualty Insurance was approximately 1.7%, 1.9% and 1.9% of consolidated net revenue in fiscal 2023, 2022 and 2021, respectively.
Description of Operating Segments AMERCO’s three reportable segments are: Moving and Storage, comprised of AMERCO ® , U-Haul ® , and Amerco Real Estate Company (“Real Estate”), and the subsidiaries of U-Haul ® and Real Estate, Property and Casualty Insurance, comprised of Repwest and its subsidiaries and ARCOA, and Life Insurance, comprised of Oxford and its subsidiaries.
Description of Operating Segments U-Haul Holding Company’s three reportable segments are: Moving and Storage, comprised of U-Haul Holding Company SM , U-Haul ® , and Amerco Real Estate Company (“Real Estate”), and the subsidiaries of U-Haul ® and Real Estate, Property and Casualty Insurance, comprised of Repwest and its subsidiaries and ARCOA, and Life Insurance, comprised of Oxford and its subsidiaries.
Our primary service objective is to “provide a better and better product and service to more and more people at a lower and lower cost.” Unless the context otherwise requires, the terms “AMERCO,” “Company,” “we,” “us,” or “our” refer to AMERCO, a Nevada corporation, and all of its legal subsidiaries, on a consolidated basis.
Our primary service objective is to “provide a better and better product and service to more and more people at a lower and lower cost.” Unless the context otherwise requires, the terms “U-Haul Holding Company,” “Company,” “we,” “us,” or “our” refer to U-Haul Holding Company, a Nevada corporation, and all of its legal subsidiaries, on a consolidated basis.
Financial Data of Segment and Geographic Areas For financial data of our segments and geographic areas please see Note 21, Financial Information by Geographic Area, and Note 21A, Consolidating Financial Information by Consolidating Industry Segment, of our Notes to Consolidated Financial Statements.
Financial Data of Segment and Geographic Areas For financial data of our segments and geographic areas please see Note 22, Financial Information by Geographic Area, and Note 22A, Consolidating Financial Information by Industry Segment, of our Notes to Consolidated Financial Statements.
To that goal, we offer our system members and our independent dealers free access to our on-line U-Haul University. These courses are critical for the development of specialized industry knowledge and to the safety of our team. For more generalized education, we also provide a tuition reimbursement program.
We do this by offering our system members and our independent dealers free access to our on-line U-Haul University courses that are critical for the development of specialized industry knowledge and to the safety of our team. To support more generalized education for our system members, we also provide a tuition reimbursement program.
Storage units range in size from 6 square feet to over 1,000 square feet. As of March 31, 2022, we operate 1,844 self-storage locations in the United States and Canada, with nearly 876,000 rentable storage units comprising 75.1 million square feet of rentable storage space.
Storage units range in size from 6 square feet to over 1,000 square feet. As of March 31, 2023, we operate 1,904 self-storage locations in the United States and Canada, with nearly 949,000 rentable storage units comprising 81.2 million square feet of rentable storage space.
As of March 31, 2022, our rental fleet consisted of approximately 186,000 trucks, 128,000 trailers and 46,000 towing devices. This equipment and our U-Haul brand of self-moving products and services are available through our network of managed retail moving stores and independent U-Haul dealers.
As of March 31, 2023, our rental fleet consisted of approximately 192,200 trucks, 138,500 trailers and 44,500 towing devices. This equipment and our U-Haul ® brand of self-moving products and services are available through our network of managed retail moving stores and independent U-Haul dealers.
Historically, revenues have been stronger in the first and second fiscal quarters due to the overall increase in moving activity during the spring and summer months. The fourth fiscal quarter is generally our weakest.
Moving and Storage business is seasonal and our results of operations and cash flows fluctuate significantly from quarter to quarter. Historically, revenues have been stronger in the first and second fiscal quarters due to the overall increase in moving activity during the spring and summer months. The fourth fiscal quarter is generally our weakest.
System Members As of March 31, 2022, we employed approximately 32,200 people in the United States and approximately 1,900 in Canada with approximately 99% of these system members working within Moving and Storage and approximately 48% of these system members working on a full-time basis.
System Members As of March 31, 2023, we employed approximately 33,100 people in the United States and approximately 2,000 in Canada with approximately 99% of these system members working within Moving and Storage and approximately 51% of these system members working on a full-time basis.
Our goal is to further utilize our web-based technology platform to increase service to consumers and businesses in the moving and storage market. 4 Compliance with environmental requirements of federal, state and local governments significantly affects our business. Our truck and trailer rental business is subject to regulation by various federal, state and foreign governmental entities. Specifically, the U.S.
Our goal is to further utilize our web-based technology platform, including our U-Haul ® app, to increase service to consumers and businesses in the moving and storage market. 4 Compliance with environmental requirements of federal, state, provincial and local governments affects our business.
Self-storage customers making a reservation through uhaul.com ® can access all of the U-Haul self-storage centers and all of our independent storage affiliate partners for even greater convenience to meet their self-storage needs. For the independent storage operator, our network gives them access to products and services allowing them to compete with larger operators more cost effectively.
Self-storage customers making a reservation through uhaul.com ® or the U-Haul app can access all of the U-Haul ® self-storage centers and all of our independent storage affiliate partners for even greater convenience to meet their self-storage needs.
For our customers who desire additional coverage over and above the standard Safemove ® protection, we also offer our Safemove Plus ® product. This package provides the rental customer with a layer of primary liability protection. We believe that through our website, uhaul.com, we have aggregated the largest network of customers and independent businesses in the self-moving and self-storage industry.
For our customers who desire additional coverage over and above the standard Safemove ® protection, we also offer our Safemove Plus ® product. This package provides the rental customer with a layer of primary liability protection.
Department of Transportation and various state, federal and Canadian agencies exercise broad powers over our motor carrier operations, safety, and the generation, handling, storage, treatment and disposal of waste materials. In addition, our storage business is also subject to federal, state and local laws and regulations relating to environmental protection and human health and safety.
Our truck and trailer rental business is subject to regulation by various federal, state, provincial and local regulations in the United States and Canada. Specifically, the U.S. Department of Transportation and various state, federal and Canadian agencies exercise broad powers over our motor carrier operations, safety, and the generation, handling, storage, treatment and disposal of waste materials.
We own numerous trademarks and service marks that contribute to the identity and recognition of our Company and its products and services. Certain of these marks are integral to the conduct of our business, a loss of any of which could have a material adverse affect on our business.
Certain of these marks are integral to the conduct of our business, a loss of any of which could have a material adverse affect on our business.
Discrimination based on race, gender, religion, age, ethnicity, disability or familial status in the acquisition, promotion or compensation of talent is not accepted. The Company does not manage to any one specific numerical measurement as part of its hiring human resource management.
Discrimination based on race, gender, religion, age, ethnicity, disability familial status or any other form of discrimination prohibited by applicable law in the acquisition, promotion, compensation, management or retention of talent is not accepted. We do not use a single or fixed set of measures or objectives as part of our recruitment and talent acquisition process or human resource management.
Environmental laws and regulations are complex, change frequently and could become more stringent in the future. Moving and Storage business is seasonal and our results of operations and cash flows fluctuate significantly from quarter to quarter.
In addition, our storage business is also subject to federal, state, provincial and local laws and regulations relating to environmental protection and human health and safety. Environmental laws and regulations are complex, change frequently and could become more stringent in the future.
Added
We believe that through our website, uhaul.com, and the U-Haul ® app, we have aggregated the largest network of customers and independent businesses in the self-moving and self-storage industry.
Added
For the independent storage operator, our network gives them access to products and services allowing them to compete with larger operators more cost effectively. We own numerous trademarks and service marks that contribute to the identity and recognition of our Company and its products and services.
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
40 edited+19 added−8 removed39 unchanged
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
40 edited+19 added−8 removed39 unchanged
2022 filing
2023 filing
Biggest changeIn addition, 889,525 shares (approximately 4.5%) of AMERCO common stock are owned under our ESOP. Each ESOP participant is entitled to vote the shares allocated to himself or herself in their discretion. In the event an ESOP participant does not vote his or her shares, such shares shall be voted by the ESOP trustee, in the ESOP trustee’s discretion.
Biggest changeThe Company has not made any election relating to compliance with any of these corporate governance standards. In addition, 836,228 shares (approximately 4.3%) of our Voting Common Stock are owned under our ESOP. Each ESOP participant is entitled to vote the shares allocated to himself or herself in their discretion.
There may be areas of North America where a charging grid with adequate capacity for our customers may not exist. 8 U-Haul has already made significant progress on several initiatives aimed at these future possibilities including: TruckShare 24/7, contactless rentals, a North American propane alternative fuel network, alternative fuel test vehicles and close OEM working relationships.
There may be areas of North America where a charging grid with adequate capacity for our customers may not exist. U-Haul has already made significant progress on several initiatives aimed at these future possibilities including: TruckShare 24/7 ® , contactless rentals, a North American propane alternative fuel network, alternative fuel test vehicles and close OEM working relationships.
Should such a tax be enacted, we could see an increase in expenses, including compliance costs and a negative effect on our operating margin. Our operations can be limited by land-use regulations. Zoning choices enacted by individual municipalities in the United States and Canada may limit our ability to serve certain markets with our products and services.
Should such a tax be enacted, we could see an increase in expenses, including compliance costs and a negative effect on our operating margin. 13 Our operations can be limited by land-use regulations. Zoning choices enacted by individual municipalities in the United States and Canada may limit our ability to serve certain markets with our products and services.
The techniques used to obtain unauthorized access, disable or degrade service or sabotage systems change frequently, may be difficult to detect for a long time and often are not recognized until launched against a target. As a result, we may be unable to anticipate these techniques or to implement adequate preventative measures.
The techniques used to obtain unauthorized access, disable or degrade service or sabotage systems change frequently, may be difficult to detect for a long time and often are not 9 recognized until launched against a target. As a result, we may be unable to anticipate these techniques or to implement adequate preventative measures.
Our inability to maintain this network or its current cost structure could inhibit our ability to adequately serve our customers and may negatively affect our results of operations and financial position. The introduction or expansion of regulations favoring electric, autonomous, connected and shared vehicles may negatively impact our business and results of operations.
Our inability to maintain this network or its current cost structure could inhibit our ability to adequately serve our customers and could negatively affect our results of operations and financial position. The introduction or expansion of laws or regulations favoring electric, autonomous, connected and shared vehicles may negatively impact our business and results of operations.
We are aware of issues regarding hazardous substances on some of our real estate and we have put in place a remediation plan at each site where we believe such a plan is necessary. See Note 18, Contingencies, of the Notes to Consolidated Financial Statements. We regularly make capital and operating expenditures to stay in compliance with environmental laws.
We are aware of issues regarding hazardous substances on some of our real estate and we have put in place a remediation plan at each site where we believe such a plan is necessary. See Note 19, Contingencies, of the Notes to Consolidated Financial Statements. We regularly make capital and operating expenditures to stay in compliance with environmental laws.
While there are too many variables at this time to assess the impact of the various proposed federal and state regulations that could affect carbon emissions, many experts believe these proposed rules could significantly affect the way companies operate in their businesses. 12 The Biden administration has communicated its willingness to consider the imposition of carbon-based taxes.
While there are too many variables at this time to assess the impact of the various proposed federal and state regulations that could affect carbon emissions, many experts believe these proposed rules could significantly affect the way companies operate in their businesses. The Biden administration has also communicated its willingness to consider the imposition of carbon-based taxes.
We cannot assure you that future compliance with these regulations, future environmental liabilities, the cost of defending environmental claims, conducting any environmental remediation or generally resolving liabilities caused by us or related third parties will not have a material adverse effect on our business, financial condition or results of operations.
We cannot assure you that future compliance with these laws and regulations, future environmental liabilities, the cost of defending environmental claims, conducting any environmental remediation or generally resolving liabilities caused by us or related third parties will not have a material adverse effect on our business, financial condition or results of operations.
Over the last twenty years, we purchased the majority of our rental trucks from Ford Motor Company and General Motors Corporation. Our fleet can be negatively affected by issues our manufacturers may face within their own supply chain.
Over the last twenty years, we have purchased the majority of our rental trucks from Ford Motor Company and General Motors Corporation. Our fleet can be negatively affected by issues our manufacturers may face within their own supply chains.
Their inability or unwillingness to make payments to us under the terms of the contracts may have a material adverse effect on our financial condition and results of operations. As of December 31, 2021, Repwest reported $0.3 million of reinsurance recoverables, net of allowances and $47.4 million of reserves and liabilities ceded to reinsurers.
Their inability or unwillingness to make payments to us under the terms of the contracts may have a material adverse effect on our financial condition and results of operations. As of December 31, 2022, Repwest reported $0.4 million of reinsurance recoverables, net of allowances and $41.3 million of reserves and liabilities ceded to reinsurers.
Of this, Repwest’s largest exposure to a single reinsurer was $31.2 million. Risks Related to our Industry We operate in a highly competitive industry. The truck rental industry is highly competitive and includes a number of significant national, regional and local competitors, many of which are several times larger than U-Haul.
Of this, Repwest’s largest exposure to a single reinsurer was $26.3 million. Risks Related to our Industry We operate in a highly competitive industry. The truck rental industry is highly competitive and includes a number of significant national, regional and local competitors, many of which are several times larger than U-Haul.
If our operating results were to worsen significantly and our cash flows or capital resources prove inadequate, or if interest rates increase significantly, we could face liquidity problems 10 that could materially and adversely affect our results of operations and financial condition. A.M. Best financial strength ratings are crucial to our life insurance business. In July 2021, A.M.
If our operating results were to worsen significantly and our cash flows or capital resources prove inadequate, or if interest rates increase significantly, we could face liquidity problems that could materially and adversely affect our results of operations and financial condition. A.M. Best financial strength ratings are crucial to our life insurance business. In August 2022, A.M.
The Tax Reform Act put into place 100% first year bonus depreciation. This will begin to gradually decrease starting in 2023 and will impact our tax liability. The accounting treatment of these tax law changes was complex, and some of the changes affected both current and future periods. Others primarily affected future periods.
The Tax Reform Act put into place 100% first year bonus depreciation. This decreased to 80% starting in 2023 and will continue to gradually decrease in future years and will impact our tax liability. The accounting treatment of these tax law changes was complex, and some of the changes affected both current and future periods. Others primarily affected future periods.
Trends in the economy could result in inflationary pressures leading to an increase in our cost of doing business. We cannot guarantee that we can manage the costs lower or pass them along in the form of higher prices to our customers.
Trends in the economy are resulting in inflationary pressures leading to an increase in our cost of doing business. We cannot guarantee that we can manage the costs lower or pass them along in the form of higher prices to our customers.
The general partner of WGHLP controls the voting and disposition decisions with respect to the common stock of AMERCO owned by WGHLP, and is managed by Edward J. Shoen (the Chairman of the Board of Directors and Chief Executive Officer of AMERCO) and his brother, Mark V. Shoen. Accordingly, Edward J. Shoen and Mark V.
The general partner of WGHLP controls the voting and disposition decisions with respect to the Voting Common Stock owned by WGHLP, and is managed by Edward J. Shoen (the Chairman of the Board of Directors and Chief Executive Officer of U-Haul Holding Company) and his brother, Mark V. Shoen. Accordingly, Edward J. Shoen and Mark V.
Also, it is possible that our suppliers may face financial difficulties or organizational changes which could negatively impact their ability to accept future orders or fulfill existing orders. The cost of acquiring new rental trucks could increase materially and negatively affect our ability to rotate new equipment into the fleet.
Also, it is possible that our suppliers may face financial difficulties, government regulations or organizational changes which could negatively impact their ability to accept future orders from U-Haul or fulfill existing orders. In addition, the cost of acquiring new rental trucks could increase materially and negatively affect our ability to rotate new equipment into the fleet.
A significant portion of our revenues are generated through third-parties. Our business plan relies upon a network of independent dealers strategically located throughout the United States and Canada. As of March 31, 2022 we had nearly 21,100 independent equipment rental dealers. In fiscal 2022, less than half of all U-Move ® rental revenue originated through this network.
A significant portion of our revenues are generated through third-parties. Our business plan relies upon a network of independent dealers strategically located throughout the United States and Canada. As of March 31, 2023 we had nearly 21,300 independent equipment rental dealers. In fiscal 2023, just under half of all U-Move ® rental revenue originated through this network.
Risks Related to Legal, Regulatory and Compliance Our operations subject us to numerous environmental regulations and the possibility that environmental liability in the future could adversely affect our operations. Compliance with environmental requirements of federal, state and local governments significantly affects our business.
Risks Related to Legal, Regulatory and Compliance Our operations subject us to numerous environmental laws and regulations and the possibility that environmental liability in the future could adversely affect our operations. Compliance with environmental requirements of federal, state, provincial and local governments in the United States and Canada affects our business.
We seek to minimize these risks through our operational processes and procedures; however, we may not be able to foresee events that could have an adverse effect on our operations.
We seek to minimize these risks through our operational processes and procedures; however, we may not be able to foresee events that could have an adverse effect on our operations. Item 1B. Unresolved Staff Comments None.
We operate in a highly regulated industry and changes in existing regulations or violations of existing or future regulations could have a material adverse effect on our operations and profitability. Our truck and trailer rental business is subject to regulation by various federal, state and foreign governmental entities. Specifically, the U.S.
We operate in a highly regulated industry and changes in existing laws and regulations or violations of existing or future laws and regulations could have a material adverse effect on our operations and profitability. Our truck, trailer and U-Box rental business is subject to regulation by various federal, state and provincial governmental entities in the United States and Canada.
The sale of used equipment provides us with funds that can be used to purchase new equipment. Conditions may arise that could lead to the decrease in demand and/or resale values for our used equipment.
Another important aspect of our fleet rotation program is the sale of used rental equipment. The sale of used equipment provides us with funds that can be used to purchase new equipment. Conditions may arise that could lead to the decrease in demand and/or resale values for our used equipment.
We cannot assure you that we will be able to successfully compete in existing markets or expand into new markets. Economic conditions, including those related to the credit markets, interest rates and inflation, may adversely affect our industry, business and results of operations.
Consolidation of ownership is taking place with certain owners of self-storage. We cannot assure you that we will be able to successfully compete in existing markets or expand into new markets. 10 Economic conditions, including those related to the credit markets, interest rates and inflation, may adversely affect our industry, business and results of operations.
Government regulators may knowingly or unknowingly choose the winners and losers in this evolving transportation environment. There remains a possibility that governments may not select U-Haul customers and U-Haul to be among the winners. We face liability risks associated with the operation of our rental fleet, sales of our products and operation of our locations.
There remains a possibility that governments may not select U-Haul customers and U-Haul to be among the winners. We face liability risks associated with the operation of our rental fleet, sales of our products and operation of our locations.
We use reinsurance and derivative contracts to mitigate our risk of loss in various circumstances. These agreements do not release us from our primary obligations and therefore we remain ultimately responsible for these potential costs. We cannot provide assurance that these reinsurers or counterparties will fulfill their obligations.
These agreements do not release us from our primary obligations and therefore we remain ultimately responsible for these potential costs. We cannot provide assurance that these reinsurers or counterparties will fulfill their obligations.
Financial strength ratings are important external factors that can affect the success of Oxford’s business plans. Accordingly, if Oxford’s ratings, relative to its competitors, are not maintained or do not continue to improve, Oxford may not be able to retain and attract business as currently planned, which could adversely affect our results of operations and financial condition.
Accordingly, if Oxford’s ratings, relative to its competitors, are not maintained or do not continue to improve, Oxford may not be able to retain and attract business as currently planned, which could adversely affect our results of operations and financial condition. Risks Related to our Financings We are highly leveraged.
Regulatory pressure in connection with the introduction and expansion of electric, autonomous and connected rental vehicles could negatively impact our cost of acquisition for rental trucks and require infrastructure improvements that could inhibit our current business model. Our Company operated-locations and independent dealer network may require physical upgrades to accommodate these types of vehicles that are uneconomical and/or unachievable.
Regulatory pressure in connection with the introduction and expansion of electric, autonomous and connected rental vehicles could negatively impact our ability to acquire, or our cost of acquisition for rental trucks and require infrastructure improvements that could inhibit our current business model.
In addition, the cost and operational consequences of implementing further data or system protection measures could be significant and our efforts to deter, identify, mitigate and/or eliminate any security breaches may not be successful. 9 We may incur losses due to our reinsurers’ or counterparties’ failure to perform under existing contracts or we may be unable to secure sufficient reinsurance or hedging protection in the future.
In addition, the cost and operational consequences of implementing further data or system protection measures could be significant and our efforts to deter, identify, mitigate and/or eliminate any security breaches may not be successful.
We necessarily may also be dependent upon third party providers who may not be able to provide workable solutions. The growing insistence that the future of the economy will be based on an all-electric solution instead of a hybrid version or other alternative fuels may create an infrastructure in which personal interstate travel will be uneconomical or severely regulated.
The growing insistence that the future of the economy will be based on an all-electric solution instead of a hybrid version or other alternative fuels may create an infrastructure in which personal interstate travel will be uneconomical or severely regulated. This would impact the moving business.
Our repair and maintenance infrastructures, including both physical plant as well as personnel, may be inappropriate for these new types of vehicles. Without such maintenance capabilities it could compromise our ability to operate such a fleet of compliant vehicles. There is risk inherent in our ability to prepare for these possibilities.
However, the proposed changes to electric, autonomous and connected vehicles raises challenges of enormous scale. Our repair and maintenance infrastructures, including both physical plants as well as personnel, may be inappropriate for these new types of vehicles. Without such repair and maintenance capabilities it could compromise our ability to operate a fleet of such vehicles.
Department of Transportation and various state, federal and Canadian agencies exercise broad powers over our motor carrier operations, safety, and the generation, handling, storage, treatment and disposal of waste materials. In addition, our storage business is also subject to federal, state and local laws and regulations relating to environmental protection and human health and safety.
Specifically, the U.S. Department of Transportation and various state, federal and Canadian agencies exercise broad powers over our motor carrier operations, safety, and the generation, handling, storage, treatment and disposal of waste materials.
Our one-way rental business would depend on an in-transit recharging network that simply does not exist today, and when completed, may be so costly or require so much charging time as to substantially limit our ability to serve customers needing to move long distances.
Our one-way rental business would depend on an in-transit recharging network throughout the United States and Canada that simply does not exist today, and that, if and when completed, may be so costly or require so much charging time as to substantially limit our ability to serve customers needing to move long distances. 8 We cooperate with original equipment manufacturers (“OEM“s), maintain and train our own technical experts and operate an equipment Technical Center that has positioned us as an industry leader in innovation for over fifty years.
These risk factors may be important in understanding this Annual Report or elsewhere. 7 Risks Related to our Business and Operations Our fleet rotation program can be adversely affected by financial market conditions. To meet the needs of our customers, U-Haul maintains a large fleet of rental equipment.
Risks Related to our Business and Operations Our fleet rotation program can be adversely affected by financial market conditions. To meet the needs of our customers, U-Haul maintains a large fleet of rental equipment. Our rental truck fleet rotation program is funded internally through operations and externally from debt and lease financing.
This could lead us to operate trucks longer than initially planned and/or reduce the size of the fleet, either of which could materially and negatively affect our results of operations. Another important aspect of our fleet rotation program is the sale of used rental equipment.
Our ability to fund our routine fleet rotation program could be adversely affected if financial market conditions limit the general availability of external financing. This could lead us to operate trucks longer than initially planned and/or reduce the size of the fleet, either of which could materially and negatively affect our results of operations.
Best upgraded the financial strength rating (“FSR”) for Oxford and Christian Fidelity Life Insurance Company (“CFLIC”) to A from A-. The FSR outlook remains stable. In addition, A.M. Best upgraded the long-term issuer credit rating (“LTICR”) to “a” from “a-“. The LTICR outlook has been revised to stable from positive.
Best affirmed the financial strength rating (“FSR”) for Oxford and Christian Fidelity Life Insurance Company (“CFLIC”) of A. The FSR outlook remains stable. In addition, A.M. Best affirmed the long-term issuer credit rating (“LTICR”) of “a”. The LTICR outlook of these ratings is stable. Financial strength ratings are important external factors that can affect the success of Oxford’s business plans.
If we must sell our assets, it may negatively affect our ability to generate revenue. In addition, we may incur additional debt or leases that would exacerbate the risks associated with our indebtedness. Uncertainty regarding LIBOR may adversely impact our indebtedness under our credit and loan facilities.
If we must sell our assets, it may negatively affect our ability to generate revenue. In addition, we may incur additional debt or leases that would exacerbate the risks associated with our indebtedness. 11 Risks Related to our Organization A majority of our Voting Common Stock is owned by a small contingent of stockholders.
Item 1A. Risk Factors The following discussion of risk factors should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) and the Consolidated Financial Statements and related notes.
All of the other information set forth in this Annual Report, including Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) and the consolidated financial statements and related notes, should be read in conjunction with the discussion of such risks, cautionary statements and other factors for a full understanding of our operations and financial conditions.
Willow Grove Holdings LP, directly and through controlled entities (“WGHLP”), owns 8,433,207 shares of AMERCO common stock, and together with Edward J. Shoen and Mark V. Shoen, owns 8,469,826 shares (approximately 43.2%) of AMERCO common stock.
Willow Grove Holdings LP, directly and through controlled entities (“WGHLP”), owns 9,791,911 shares of our common stock, $0.25 par value per share (“Voting Common Stock”), and together with Edward J. Shoen and Mark V. Shoen, owns 9,828,542 shares (approximately 50.1%) of Voting Common Stock.
In addition, the federal government may institute some regulation that limits carbon emissions by setting a maximum amount of carbon individual entities can emit without penalty. This would likely affect everyone who uses fossil fuels and would disproportionately affect users in the highway transportation industries.
Compliance with changing laws and regulations could substantially impair real property and equipment productivity and increase our costs. In addition, the federal government may institute some regulation that limits carbon emissions by setting a maximum amount of carbon individual entities can emit without penalty.
Risks Related to our Financings We are highly leveraged. As of March 31, 2022, we had total debt outstanding of $6,022.5 million and operating lease liabilities of $74.2 million.
As of March 31, 2023, we had total debt outstanding of $6,143.4 million and operating lease liabilities of $58.4 million.
The failure to comply with these laws and regulations may adversely affect our ability to sell or rent such property or to use the property as collateral for future borrowings. Compliance with changing regulations could substantially impair real property and equipment productivity and increase our costs.
In addition, our storage business is also subject to federal, state, provincial and local laws and regulations relating to environmental protection and human health and safety, among other matters. The failure to comply with these laws and regulations may adversely affect our ability to sell or rent such property or to use the property as collateral for future borrowings.
Removed
Our rental truck fleet rotation program is funded internally through operations and externally from debt and lease financing. Our ability to fund our routine fleet rotation program could be adversely affected if financial market conditions limit the general availability of external financing.
Added
Item 1A. Risk Factors The following important risk factors, and those risk factors described elsewhere in this Annual Report or in our other filings with the SEC, could materially affect our business, financial condition and future results. We also refer you to the factors and cautionary language set forth in the section entitled “Cautionary Statements Regarding Forward-Looking Statements,” above.
Removed
We cooperate with original equipment manufacturers (“OEM“s), maintain and train our own technical experts and operate an equipment Technical Center that has positioned us as an industry leader in innovation for over fifty years. The proposed changes to electric, autonomous and connected vehicles raises challenges of enormous scale.
Added
Although the risks are organized by headings, and each risk is discussed separately, many are interrelated. The following risks are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.
Removed
On July 27, 2017, the United Kingdom’s Financial Conduct Authority, which regulates London Inter-Bank Offer Rate (“LIBOR”), announced that it intends to phase out LIBOR by the end of 2021.
Added
Our Company-operated locations and independent dealer network may require physical upgrades to accommodate these types of vehicles that are uneconomical and/or unachievable.
Removed
In addition, in April 2018, the Federal Reserve System, in conjunction with the Alternative Reference Rates Committee, announced the replacement of LIBOR with a new index, calculated by short-term repurchase agreements collateralized by U.S. Treasury securities, called the Secured Overnight Financing Rate.
Added
We may also need to depend upon third party providers for some of those services, and they may not be able to provide workable solutions. There is a risk that we may not be able to adequately prepare for these possibilities.
Removed
In November 2020 the Federal Reserve, the Federal Deposit Insurance Corporation and other groups announced that LIBOR reporting will cease being published in June 2023. In March 2022, Congress passed the Adjustable Interest Rate (LIBOR) Act. It provides protection for contracts without workable fallback provisions.
Added
In addition, even if we successfully adapt to any such changes, there can be no guarantee that our fleet or services as adapted would meet the needs of our “do-it-yourself“ moving and storage customers, or that we would be able to offer our products and services at prices our customers would be willing or able to pay.
Removed
The act also provides safe-harbor provisions to shield parties from liability under potential lawsuits due to the transition away from LIBOR. Potential changes, or uncertainty related to such potential changes, may adversely affect the market for LIBOR-based securities, including our portfolio of LIBOR-indexed, floating-rate debt securities, or the cost of our borrowings.
Added
However, these initiatives may not enable us to successfully adapt to the requirements of a changed regulatory environment favoring or requiring all-electric or specific alternative fuel solutions. Government regulators may knowingly or unknowingly choose the winners and losers in this evolving transportation environment.
Removed
In addition, changes or reforms to the determination or supervision of LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR, which could have an adverse impact on the market for LIBOR-based securities, including the value of the LIBOR-indexed, floating-rate debt securities in our portfolio, or the cost of our borrowings.
Added
In 2022 and 2021, we experienced a cybersecurity incident which is described in this Annual Report under the headings “Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operation – Cybersecurity Incident”.
Removed
We have already been renegotiating our LIBOR-indexed debt and will continue to do so. The potential effect of the phase-out or replacement of LIBOR on our cost of capital and net investment income cannot yet be determined. 11 Risks Related to our Organization A substantial amount of our shares is owned by a small contingent of stockholders.
Added
We may incur losses due to our reinsurers’ or counterparties’ failure to perform under existing contracts or we may be unable to secure sufficient reinsurance or hedging protection in the future. We use reinsurance and derivative contracts to mitigate our risk of loss in various circumstances.
Added
Furthermore, we are a “controlled company” within the meaning of the New York Stock Exchange corporate governance standards.
Added
Under these corporate governance standards, a company of which more than 50% of the voting power for the election of directors is held by an individual, group or another company is a “ controlled company ” and may elect not to comply with certain corporate governance standards, including the requirements (1) that a majority of our Board consist of independent directors, (2) that our Board have a compensation committee that consists entirely of independent directors with a written charter addressing the committee’s purpose and responsibilities, and (3) that our director nominations be made, or recommended to our full Board, by our independent directors or by a nominations committee that consists entirely of independent directors and that we adopt a written charter or board resolution addressing the nomination process.
Added
In the event an ESOP participant does not vote his or her shares, such shares shall be voted by the ESOP trustee, in the ESOP trustee’s discretion. The trading price for our outstanding Voting Common Stock may continue to be volatile and the trading price for our newly distributed Series N Non-Voting Common Stock may also be volatile.
Added
An Independent Special Committee of the Board authorized the creation of a new Series of Common Stock, designated as Series N Non-Voting Common Stock, par value of $0.001 per share (the “Non-Voting Common Stock”). This series of stock is in addition to our pre-existing class of Voting Common Stock.
Added
On November 9, 2022, each holder of our Voting Common Stock as of November 3, 2022 received nine shares of Non-Voting Common Stock for every outstanding share of Voting Common Stock through a stock dividend.
Added
The Non-Voting Common Stock is listed on the New York Stock Exchange, and we cannot predict whether, or to what extent, a liquid trading market will develop long-term for the Non-Voting Common Stock.
Added
If a liquid trading market does not develop or if the Non-Voting Common Stock is not attractive to retail investors, including team members and customers of the Company, we may not achieve our objectives in creating this new class.
Added
The trading price of our stock has at times experienced substantial price volatility and may continue to be volatile, including as a result of the distribution of shares of Non-Voting Common Stock. The market prices of our two series of stock and the allocation of value between the two may be volatile and their respective values may decline.
Added
The trading price of our Voting Common Stock and Non-Voting Common Stock may fluctuate widely in response to various factors, some of which are beyond our control.
Added
These factors include, among others: • Quarterly variations in our results of operations or those of our competitors. • Announcements by us or our competitors of acquisitions, new products, significant contracts, commercial relationships, or capital commitments. • Recommendations by securities analysts or changes in earnings estimates. • Announcements about our earnings that are not in line with analyst expectations. • Announcements by our competitors of their earnings that are not in line with analyst expectations. 12 • Commentary by industry and market professionals about our products, strategies, and other matters affecting our business and results, regardless of its accuracy. • The volume of shares of Voting Common Stock and Non-Voting Common Stock available for public sale. • Sales of Voting Common Stock and Non-Voting Common Stock by us or by our stockholders (including sales by our directors, executive officers, and other employees). • Short sales, hedging, and other derivative transactions on shares of our Voting Common Stock and Non-Voting Common Stock. • The perceived values of Voting Common Stock and Non-Voting Common Stock relative to one another.
Added
This would likely affect everyone who uses fossil fuels and would disproportionately affect users in the highway transportation industries.
Item 2. Properties
Properties — owned and leased real estate
1 edited+0 added−0 removed1 unchanged
Item 2. Properties
Properties — owned and leased real estate
1 edited+0 added−0 removed1 unchanged
2022 filing
2023 filing
Biggest changeWe operate over 2,100 U-Haul ® retail centers of which 495 U-Haul branded locations are managed for subsidiaries of WGHLP and Mercury Partners, L.P., and 11 manufacturing and assembly facilities. We also operate over 145 fixed-site repair facilities located throughout the United States and Canada. These facilities are used primarily for the benefit of Moving and Storage.
Biggest changeWe operate over 2,200 U-Haul ® retail centers of which 494 U-Haul branded locations are managed for subsidiaries of WGHLP and Mercury Partners, L.P., and 11 manufacturing and assembly facilities. We also operate over 151 fixed-site repair facilities located throughout the United States and Canada. These facilities are used primarily for the benefit of Moving and Storage.
Item 4. Mine Safety Disclosures
Mine Safety Disclosures — required of mining issuers
1 edited+0 added−0 removed0 unchanged
Item 4. Mine Safety Disclosures
Mine Safety Disclosures — required of mining issuers
1 edited+0 added−0 removed0 unchanged
2022 filing
2023 filing
Biggest changeItem 4. Mine Safety Disclosures 14 PART II Item 5. Ma rket for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 14 Item 6. [Reserved] 15 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 16 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 29 Item 8.
Biggest changeItem 4. Mine Safety Disclosures 15 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 15 Item 6. [Reserved] 16 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 17 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 30 Item 8.
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
5 edited+3 added−1 removed0 unchanged
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
5 edited+3 added−1 removed0 unchanged
2022 filing
2023 filing
Biggest changeCommon Stock Dividends Declared Date Per Share Amount Record Date Dividend Date October 6, 2021 $ 0.50 October 18, 2021 October 29, 2021 August 19, 2021 $ 0.50 September 7, 2021 September 21, 2021 June 9, 2021 $ 0.50 June 24, 2021 July 8, 2021 December 9, 2020 $ 2.00 December 21, 2020 December 30, 2020 August 20, 2020 $ 0.50 September 7, 2020 September 21, 2020 See Note 20, Statutory Financial Information of Insurance Subsidiaries, of the Notes to Consolidated Financial Statements for a discussion of certain statutory restrictions on the ability of the insurance subsidiaries to pay dividends to AMERCO. 14 Performance Graph The following graph compares the cumulative total stockholder return on the Company’s common stock for the period March 31, 2017 through March 31, 2022 with the cumulative total return on the Dow Jones US Total Market and the Dow Jones US Transportation Average.
Biggest changeVoting Common Stock Dividends Declared Date Per Share Amount Record Date Dividend Date August 18, 2022 $ 0.50 September 6, 2022 September 20, 2022 April 6, 2022 $ 0.50 April 18, 2022 April 29, 2022 October 6, 2021 $ 0.50 October 18, 2021 October 29, 2021 August 19, 2021 $ 0.50 September 7, 2021 September 21, 2021 June 9, 2021 $ 0.50 June 24, 2021 July 8, 2021 Non-Voting Common Stock Dividends Declared Date Per Share Amount Record Date Dividend Date March 3, 2023 $ 0.04 March 14, 2023 March 27, 2023 December 7, 2022 $ 0.04 December 19, 2022 December 30, 2022 See Note 21, Statutory Financial Information of Insurance Subsidiaries, of the Notes to Consolidated Financial Statements for a discussion of certain statutory restrictions on the ability of the insurance subsidiaries to pay dividends to U-Haul Holding Company. 15 Performance Graph The following graph compares the cumulative total stockholder return on the Company’s Voting Common Stock (UHAL) and Non-Voting Common Stock (UHAL.B) for the period March 31, 2018 through March 31, 2023 with the cumulative total return on the Dow Jones US Total Market and the Dow Jones US Transportation Average.
The comparison assumes that $100 was invested on March 31, 2017 in the Company’s common stock and in each of the comparison indices. The graph reflects the value of the investment based on the closing price of the common stock trading on NASDAQ on March 31, 2018, 2019, 2020, 2021 and 2022.
The comparison assumes that $100 was invested on March 31, 2018 in the Company’s common stock and in each of the comparison indices.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities AMERCO’s common stock is listed on the NASDAQ Global Select Market under the trading symbol “UHAL”. As of March 31, 2022, there were approximately 3,100 holders of record of our common stock.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities U-Haul Holding Company’s two classes of common stock are listed on the New York Stock Exchange under the trading symbols “UHAL” for our Voting Common Stock and “UHAL.B” for our Non-Voting Common Stock.
We derived the number of our stockholders using internal stock ledgers and utilizing Mellon Investor Services Stockholder listings. Dividends AMERCO ® does not have a formal dividend policy. The Board periodically considers the advisability of declaring and paying dividends to common stockholders in light of existing circumstances.
As of March 31, 2023, there were approximately 3,300 holders of record of our Voting Common Stock and approximately 3,400 holders of record of our Non-Voting Common Stock. We derived the number of our stockholders using internal stock ledgers and utilizing Mellon Investor Services Stockholder listings.
Fiscal years ended March 31: 2017 2018 2019 2020 2021 2022 AMERCO $ 100 $ 93 $ 100 $ 79 $ 167 $ 165 Dow Jones US Total Market 100 117 126 106 160 171 Dow Jones US Transportation Average 100 114 115 85 161 182
Fiscal years ended March 31: 2018 2019 2020 2021 2022 2023 U-Haul Holding Company - UHAL $ 100 $ 108 $ 85 $ 180 $ 178 $ 176 U-Haul Holding Company - UHAL.B 100 108 85 180 178 153 Dow Jones US Total Market 100 108 91 137 146 138 Dow Jones US Transportation Average 100 100 74 141 159 139
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The following table lists the dividends that have been declared and issued for fiscal 2022 and 2021.
Added
Dividends We do not have a formal dividend policy for its Voting Common Stock (UHAL). We do have a dividend policy for our Non-Voting Common Stock (UHAL.B), which provides that unless the Board otherwise determines in its sole discretion, it is the Company’s policy to declare and pay a quarterly cash dividend of $0.04 per share.
Added
The Board periodically considers the advisability of declaring and paying dividends to holders of each of our two classes of common stock in light of existing circumstances. The following table lists the dividends that were declared and issued for fiscal 2023 and 2022.
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The graph reflects the value of the investment based on the closing price of the common stock trading on the New York Stock Exchange and NASDAQ Global Select Market on March 31, 2019, 2020, 2021, 2022 and 2023.
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
87 edited+28 added−20 removed46 unchanged
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
87 edited+28 added−20 removed46 unchanged
2022 filing
2023 filing
Biggest changeSee Note 13, of the Notes to Consolidated Financial Statements included in Item 8: Financial Statements and Supplementary Data, of this Annual Report for more information on income taxes. 21 Moving and Storage Fiscal 2022 Compared with Fiscal 2021 Listed below are revenues for the major product lines at Moving and Storage for fiscal 2022 and fiscal 2021: Year Ended March 31, 2022 2021 (In thousands) Self-moving equipment rentals $ 3,963,535 $ 3,086,824 Self-storage revenues 617,120 477,262 Self-moving and self-storage products and service sales 351,447 344,929 Property management fees 35,194 31,603 Net investment and interest income 3,135 2,259 Other revenue 427,836 288,797 Moving and Storage revenue $ 5,398,267 $ 4,231,674 Self-moving equipment rental revenues increased $876.7 million during fiscal 2022, compared with fiscal 2021 .
Biggest changeMoving and Storage Fiscal 2023 Compared with Fiscal 2022 Listed below are revenues for the major product lines at Moving and Storage for fiscal 2023 and fiscal 2022: Year Ended March 31, 2023 2022 (In thousands) Self-moving equipment rentals $ 3,882,620 $ 3,963,535 Self-storage revenues 744,492 617,120 Self-moving and self-storage products and service sales 357,286 351,447 Property management fees 37,073 35,194 Net investment and interest income 70,992 3,135 Other revenue 475,251 427,836 Moving and Storage revenue $ 5,567,714 $ 5,398,267 Self-moving equipment rental revenues decreased $80.9 million during fiscal 2023, compared with fiscal 2022 .
We continue to hold significant cash and have access to additional liquidity to meet our anticipated capital expenditure requirements for investment in our rental fleet, rental equipment and storage acquisitions and build outs. As a result of the federal income tax provisions of the CARES Act, we have filed applicable forms with the IRS to carryback net operating losses.
We continue to hold significant cash and have access to additional liquidity to meet our anticipated capital expenditure requirements for investment in our rental fleet, rental equipment and storage acquisitions and build outs. 28 As a result of the federal income tax provisions of the CARES Act we have filed applicable forms with the IRS to carryback net operating losses.
For a more detailed discussion of our long-term debt and borrowing capacity, please see Note 8, Borrowings, of the Notes to Consolidated Financial Statements included in Item 8: Financial Statements and Supplementary Data, of this Annual Report. Historically, we used certain off-balance sheet arrangements in connection with the expansion of our self-storage business.
For a more detailed discussion of our long-term debt and borrowing capacity, please see Note 9, Borrowings, of the Notes to Consolidated Financial Statements included in Item 8: Financial Statements and Supplementary Data, of this Annual Report. Historically, we used certain off-balance sheet arrangements in connection with the expansion of our self-storage business.
U-Haul’s Truck Share 24/7, Skip-the-Counter Self-Storage rentals and Self-checkout for moving supplies provide our customers methods for conducting business with us directly via their mobile devices and also limiting physical exposure. Since 1945, U-Haul has incorporated sustainable practices into its everyday operations.
U-Haul’s mobile app, Truck Share 24/7, Skip-the-Counter Self-Storage rentals and Self-checkout for moving supplies provide our customers methods for conducting business with us directly via their mobile devices and also limiting physical exposure. Since 1945, U-Haul has incorporated sustainable practices into its everyday operations.
In determining the assumptions for calculating workers’ compensation reserves, management considers multiple factors including the following: Claimant longevity, 18 Cost trends associated with claimant treatments, Changes in ceding entity and third party administrator reporting practices, Changes in environmental factors including legal and regulatory, Current conditions affecting claim settlements, and Future economic conditions including inflation.
In determining the assumptions for calculating workers’ compensation reserves, management considers multiple factors including the following: Claimant longevity, Cost trends associated with claimant treatments, Changes in ceding entity and third party administrator reporting practices, Changes in environmental factors, including legal and regulatory, Current conditions affecting claim settlements, and Future economic conditions, including inflation.
Due to the significant assumptions employed in this model, the amounts shown could materially differ from actual results. 28 As presented above, contractual obligations on debt and guarantees represent principal payments while contractual obligations for operating leases represent the notional payments under the lease arrangements.
Due to the significant assumptions employed in this model, the amounts shown could materially differ from actual results. As presented above, contractual obligations on debt and guarantees represent principal payments while contractual obligations for operating leases represent the notional payments under the lease arrangements.
Life Insurance has not historically used debt or equity issues to increase capital and therefore has not had any significant direct exposure to capital market conditions other than through its investment portfolio. However, as of December 31, 2021, Oxford had outstanding advances of $60.0 million through its membership in the Federal Home Loan Bank (“FHLB”).
Life Insurance has not historically used debt or equity issues to increase capital and therefore has not had any significant direct exposure to capital market conditions other than through its investment portfolio. However, as of December 31, 2022, Oxford had outstanding advances of $60.0 million through its membership in the Federal Home Loan Bank (“FHLB”).
We then discuss our critical accounting policies and estimates that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results.
We then discuss our critical accounting estimates that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results.
Next, we discuss our results of operations for fiscal 2022 compared with fiscal 2021, which are followed by an analysis of liquidity changes in our balance sheets and cash flows, and a discussion of our financial commitments in the sections entitled Liquidity and Capital Resources and Disclosures about Contractual Obligations and Commercial Commitments.
Next, we discuss our results of operations for fiscal 2023 compared with fiscal 2022, which are followed by an analysis of liquidity changes in our balance sheets and cash flows, and a discussion of our financial commitments in the sections entitled Liquidity and Capital Resources and Disclosures about Contractual Obligations and Commercial Commitments.
In fiscal 2023, we are actively looking to complete current projects, increase occupancy in our existing portfolio of locations and acquire new locations. New projects and acquisitions will be considered and pursued if they fit our long-term plans and meet our financial objectives. It is likely spending on acquisitions and new development will increase in fiscal 2023.
In fiscal 2024, we are actively looking to complete current projects, increase occupancy in our existing portfolio of locations and acquire new locations. New projects and acquisitions will be considered and pursued if they fit our long-term plans and meet our financial objectives. It is likely spending on acquisitions and new development will increase in fiscal 2024.
Maintaining an adequate level of new investment in our truck fleet is an important component of our plan to meet our operational goals and is likely to increase in fiscal 2023. Revenue in the U-Move ® program could be adversely impacted should we fail to execute in any of these areas.
Maintaining an adequate level of new investment in our truck fleet is an important component of our plan to meet our operational goals and is likely to increase in fiscal 2024. Revenue in the U-Move ® program could be adversely impacted should we fail to execute in any of these areas.
The final outcome of these audits may cause changes that could materially impact our financial results. Please see Note 13, Provision for Taxes, of the Notes to Consolidated Financial Statements included in Item 8: Financial Statements and Supplementary Data, of this Annual Report for more information.
The final outcome of these audits may cause changes that could materially impact our financial results. Please see Note 14, Provision for Taxes, of the Notes to Consolidated Financial Statements included in Item 8: Financial Statements and Supplementary Data, of this Annual Report for more information.
Fleet investments in fiscal 2023 and beyond will be dependent upon several factors including the availability of capital, the truck rental environment, the availability of equipment from manufacturers and the used-truck sales market. We anticipate that the fiscal 2023 investments will be funded largely through debt financing, external lease financing and cash from operations.
Fleet investments in fiscal 2024 and beyond will be dependent upon several factors including the availability of capital, the truck rental environment, the availability of equipment from manufacturers and the used-truck sales market. We anticipate that the fiscal 2024 investments will be funded largely through debt financing, external lease financing and cash from operations.
For more information please see Note 19, Related Party Transactions, of the Notes to Consolidated Financial Statements included in Item 8: Financial Statements and Supplementary Data, of this Annual Report. These arrangements were primarily used when our overall borrowing structure was more limited.
For more information, please see Note 20, Related Party Transactions, of the Notes to Consolidated Financial Statements included in Item 8: Financial Statements and Supplementary Data, of this Annual Report. These arrangements were primarily used when our overall borrowing structure was more limited.
The discussion of our financial condition and results of operations for the year ended March 31, 2020 included in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended March 31, 2021 is incorporated by reference into this MD&A.
The discussion of our financial condition and results of operations for the year ended March 31, 2021 included in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended March 31, 2022 is incorporated by reference into this MD&A.
Certain accounting policies require us to make difficult and subjective judgments and assumptions, often as a result of the need to estimate matters that are inherently uncertain. 17 Following is a detailed description of the accounting policies that we deem most critical to us and that require management’s most difficult and subjective judgments.
Certain accounting policies require us to make difficult and subjective judgments and assumptions, often as a result of the need to estimate matters that are inherently uncertain. Following is a detailed description of the accounting estimates that we deem most critical to us and that require management’s most difficult and subjective judgments.
We conclude this MD&A by discussing our outlook for fiscal 2023. This MD&A should be read in conjunction with the other sections of this Annual Report, including Item 1: Business and Item 8: Financial Statements and Supplementary Data.
We conclude this MD&A by discussing our outlook for fiscal 2024. This MD&A should be read in conjunction with the other sections of this Annual Report, including Item 1: Business and Item 8: Financial Statements and Supplementary Data.
The accounting policies that we deem most critical to us, and involve the most difficult, subjective or complex judgments include the following: Recoverability of Property, Plant and Equipment Our property, plant and equipment is stated at cost.
The accounting estimates that we deem most critical to us, and involve the most difficult, subjective or complex judgments include the following: Recoverability of Property, Plant and Equipment Our property, plant and equipment is stated at cost.
We will continue to invest capital and resources in the U-Box ® program throughout fiscal 2023. Inflationary pressures may challenge our ability to maintain or improve upon our operating margin.
We will continue to invest capital and resources in the U-Box ® program throughout fiscal 2024. Inflationary pressures may challenge our ability to maintain or improve upon our operating margin.
For more information, please see Note 20, Statutory Financial Information of Insurance Subsidiaries, of the Notes to Consolidated Financial Statements included in Part II, Item 8 of this Annual Report.
For more information, please see Note 21, Statutory Financial Information of Insurance Subsidiaries, of the Notes to Consolidated Financial Statements included in Part II, Item 8 of this Annual Report.
Our actual results may differ materially from these forward-looking statements. AMERCO has a fiscal year that ends on the 31 st of March for each year that is referenced. Our insurance company subsidiaries have fiscal years that end on the 31 st of December for each year that is referenced. They have been consolidated on that basis.
Our actual results may differ materially from these forward-looking statements. U-Haul Holding Company has a fiscal year that ends on the 31 st of March for each year that is referenced. Our insurance company subsidiaries have fiscal years that end on the 31 st of December for each year that is referenced. They have been consolidated on that basis.
Management believes it has adequate liquidity between cash and cash equivalents and unused borrowing capacity in existing credit facilities to meet the current and expected needs of the Company over the next several years. As of March 31, 2022, we had available borrowing capacity under existing credit facilities of $80.0 million.
Management believes it has adequate liquidity between cash and cash equivalents and unused borrowing capacity in existing credit facilities to meet the current and expected needs of the Company over the next several years. As of March 31, 2023, we had available borrowing capacity under existing credit facilities of $465.0 million.
The Company expects to fund these development projects through a combination of internally generated funds, corporate debt and with borrowings against existing properties as they operationally mature. For fiscal 2022, the Company invested $1,004.2 million in real estate acquisitions, new construction and renovation and repair compared to $505.1 million in fiscal 2021.
The Company expects to fund these development projects through a combination of internally generated funds, corporate debt and with borrowings against existing properties as they operationally mature. For fiscal 2023, the Company invested $1,341.4 million in real estate acquisitions, new construction and renovation and repair compared to $1,004.2 million in fiscal 2022.
Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations We begin this MD&A with the overall strategy of AMERCO, followed by a description of, and strategy related to, our operating segments to give the reader an overview of the goals of our businesses and the direction in which our businesses and products are moving.
Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations We begin this MD&A with the overall strategy of U-Haul Holding Company, followed by a description of, and strategy related to, our operating segments to give the reader an overview of the goals of our businesses and the direction in which our businesses and products are moving.
ASC 740 - Income Taxes liabilities and interest of $64.6 million is not included above due to uncertainty surrounding ultimate settlements, if any. Fiscal 2023 Outlook We will continue to focus our attention on increasing transaction volume and improving pricing, product and utilization for self-moving equipment rentals.
ASC 740 - Income Taxes liabilities and interest of $75.8 million is not included above due to uncertainty surrounding ultimate settlements, if any. Fiscal 2024 Outlook We will continue to focus our attention on increasing transaction volume and improving pricing, product and utilization for self-moving equipment rentals.
In addition to cash flows from operating activities and financing activities, a substantial amount of liquid funds are available through Life Insurance's short-term portfolio and its membership in the FHLB. As of December 31, 2021, 2020 and 2019, cash and cash equivalents and short-term investments amounted to $50.1 million, $178.1 million and $30.5 million, respectively.
In addition to cash flows from operating activities and financing activities, a substantial amount of liquid funds are available through Life Insurance's short-term portfolio and its membership in the FHLB. As of December 31, 2022, 2021 and 2020, cash and cash equivalents and short-term investments amounted to $15.0 million, $50.1 million and $178.1 million, respectively.
Property and Casualty Insurance Net cash provided by operating activities was $31.2 million, $19.4 million, and $22.5 million for the years ended December 31, 2021, 2020, and 2019, respectively. The increase was the result of changes in intercompany balances and the timing of payables activity.
Property and Casualty Insurance Net cash provided by operating activities was $36.2 million, $31.2 million, and $19.4 million for the years ended December 31, 2022, 2021, and 2020, respectively. The increase was the result of changes in intercompany balances and the timing of payables activity.
The cash flows shown above are undiscounted for interest and as a result total outflows for all years shown significantly exceed the corresponding liabilities of $2,735.1 million included in our consolidated balance sheet as of March 31, 2022. Life Insurance expects to fully fund these obligations from their invested asset portfolio.
The cash flows shown above are undiscounted for interest and as a result total outflows for all years shown significantly exceed the corresponding liabilities of $2,785.3 million included in our 29 consolidated balance sheet as of March 31, 2023. Life Insurance expects to fully fund these obligations from their invested asset portfolio.
For a more detailed discussion of these advances, please see Note 8, Borrowings, of the Notes to Consolidated Financial Statements. Cash Provided from Operating Activities by Operating Segments Moving and Storage Net cash provided by operating activities was $1,823.3 million, $1,428.9 million and $980.5 million in fiscal 2022, 2021 and 2020, respectively.
For a more detailed discussion of these advances, please see Note 9, Borrowings, of the Notes to Consolidated Financial Statements. Cash Provided from Operating Activities by Operating Segments Moving and Storage Net cash provided by operating activities was $1,593.7 million, $1,823.3 million and $1,428.9 million in fiscal 2023, 2022 and 2021, respectively.
Property and Casualty Insurance’s cash and cash equivalents and short-term investment portfolios amounted to $41.7 million, $12.9 million, and $11.8 million as of December 31, 2021, 2020, and 2019, respectively. These balances reflect funds in transition from maturity proceeds to long-term investments.
Property and Casualty Insurance’s cash and cash equivalents and short-term investment portfolios amounted to $27.2 million, $41.7 million, and $12.9 million as of December 31, 2022, 2021, and 2020, respectively. These balances reflect funds in transition from maturity proceeds to long-term investments.
Contractual Obligations and Commercial Commitments For contractual obligations for material cash requirements from known contractual and other obligations as part of liquidity and capital resources discussion, please see Notes 8, 9, 10, 16, 17 and 18 of the Notes to Consolidated Financial Statements. The following table provides additional detail for contractual commitments and contingencies as of March 31, 2022.
Contractual Obligations and Commercial Commitments For contractual obligations for material cash requirements from known contractual and other obligations as part of liquidity and capital resources discussion, please see Notes 9, 10, 11, 15, 17, 18 and 19 of the Notes to Consolidated Financial Statements. The following table provides additional detail for contractual commitments and contingencies as of March 31, 2023.
Other revenue increased $139.8 million during fiscal 2022, compared with fiscal 2021, caused primarily by growth in our U-Box ® program. 20 Listed below are revenues and earnings from operations at each of our operating segments for fiscal 2022 and 2021. The insurance companies’ years ended December 31, 2021 and 2020.
Other revenue increased $47.5 million during fiscal 2023, compared with fiscal 2022, caused primarily by growth in our U-Box ® program. 21 Listed below are revenues and earnings from operations at each of our operating segments for fiscal 2023 and 2022. The insurance companies’ years ended December 31, 2022 and 2021.
For fiscal 2023, the timing of new projects will be dependent upon several factors, including the entitlement process, availability of capital, weather, the identification and successful acquisition of target properties and the availability of labor and materials. We are likely to increase real estate capital expenditures in fiscal 2023.
For fiscal 2024, the timing of new projects will be dependent upon several factors, including the entitlement process, availability of capital, weather, the identification and successful acquisition of target properties and the availability of labor and materials. We are likely to maintain a high level of real estate capital expenditures in fiscal 2024.
Description of Operating Segments AMERCO’s three reportable segments are: Moving and Storage, comprised of AMERCO, U-Haul, and Real Estate and the subsidiaries of U-Haul and Real Estate; Property and Casualty Insurance, comprised of Repwest and its subsidiaries and ARCOA; and Life Insurance, comprised of Oxford and its subsidiaries. 16 See Note 1, Basis of Presentation, Note 21, Financial Information by Geographic Area, and Note 21A, Consolidating Financial Information by Industry Segment, of the Notes to Consolidated Financial Statements included in Item 8: Financial Statements and Supplementary Data, of this Annual Report.
Description of Operating Segments U-Haul Holding Company’s three reportable segments are: Moving and Storage, comprised of U-Haul Holding Company, U-Haul, and Real Estate and the subsidiaries of U-Haul and Real Estate; Property and Casualty Insurance, comprised of Repwest and its subsidiaries and ARCOA; and Life Insurance, comprised of Oxford and its subsidiaries. 17 See Note 1, Basis of Presentation, Note 22, Financial Information by Geographic Area, and Note 22A, Consolidating Financial Information by Industry Segment, of the Notes to Consolidated Financial Statements included in Item 8: Financial Statements and Supplementary Data, of this Annual Report.
As of March 31, 2022, cash and cash equivalents totaled $2,704.1 million, compared with $1,194.0 million as of March 31, 2021. The assets of our insurance subsidiaries are generally unavailable to fulfill the obligations of non-insurance operations (AMERCO, U-Haul and Real Estate).
As of March 31, 2023, cash and cash equivalents totaled $2,060.5 million, compared with $2,704.1 million as of March 31, 2022. The assets of our insurance subsidiaries are generally unavailable to fulfill the obligations of non-insurance operations (U-Haul Holding Company, U-Haul and Real Estate).
U-Haul estimates that during fiscal 2023 the Company will reinvest in its truck and trailer rental fleet approximately $1.1 billion, net of equipment sales and excluding any lease buyouts. For fiscal 2022, the Company invested, net of sales, approximately $459 million before any lease buyouts in its truck and trailer fleet.
U-Haul estimates that during fiscal 2024 the Company will reinvest in its rental equipment fleet approximately $685 million, net of equipment sales and excluding any lease buyouts. For fiscal 2023, the Company invested, net of sales, approximately $611 million before any lease buyouts in its rental equipment fleet.
We believe that stockholders’ equity at the Property and Casualty operating segment remains sufficient and we do not believe that its ability to pay ordinary dividends to AMERCO will be restricted per state regulations. Our Property and Casualty operating segment stockholders’ equity was $296.1 million, $262.6 million, and $251.1 million as of December 31, 2021, 2020, and 2019, respectively.
We believe that stockholders’ equity at the Property and Casualty operating segment remains sufficient and we do not believe that its ability to pay ordinary dividends to U-Haul Holding Company will be restricted per state regulations. Our Property and Casualty operating segment stockholders’ equity was $294.5 million and $296.1 million as of December 31, 2022 and 2021, respectively.
The decrease in 2021 compared with 2020 resulted from earnings of $15.3 million and a decrease in accumulated other comprehensive income of $53.6 million primarily due to the effect of interest rate changes on the fixed maturity portion of the investment portfolio.
The decrease in 2022 compared with 2021 resulted from earnings of $10.0 million and a decrease in accumulated other comprehensive income of $294.5 million primarily due to the effect of interest rate changes on the fixed maturity portion of the investment portfolio.
As a result, Property and Casualty Insurance's assets are generally not available to satisfy the claims of AMERCO, or its legal subsidiaries. For calendar year 2022, the ordinary dividend available to be paid to AMERCO is $26.7 million.
As a result, Property and Casualty Insurance's assets are generally not available to satisfy the claims of U-Haul Holding Company, or its legal subsidiaries. For calendar year 2023, the ordinary dividend available to be paid to U-Haul Holding Company is $29.5 million.
The components of our net capital expenditures are provided in the following table: Years Ended March 31, 2022 2021 2020 (In thousands) Purchases of rental equipment $ 1,061,439 $ 870,106 $ 1,374,141 Equipment lease buyouts – 11,477 63,973 Purchases of real estate, construction and renovations 1,004,192 505,112 751,395 Other capital expenditures 70,906 54,780 119,897 Gross capital expenditures 2,136,537 1,441,475 2,309,406 Less: Sales of property, plant and equipment (623,235) (537,484) (687,375) Net capital expenditures $ 1,513,302 $ 903,991 $ 1,622,031 Moving and Storage continues to hold significant cash and we believe has access to additional liquidity.
The components of our net capital expenditures are provided in the following table: Years Ended March 31, 2023 2022 2021 (In thousands) Purchases of rental equipment $ 1,298,955 $ 1,061,439 $ 870,106 Equipment lease buyouts – – 11,477 Purchases of real estate, construction and renovations 1,341,417 1,004,192 505,112 Other capital expenditures 86,595 70,906 54,780 Gross capital expenditures 2,726,967 2,136,537 1,441,475 Less: Sales of property, plant and equipment (701,331) (623,235) (537,484) Net capital expenditures $ 2,025,636 $ 1,513,302 $ 903,991 Moving and Storage continues to hold significant cash and we believe has access to additional liquidity.
Reversals of the allowance for credit losses are permitted and should not exceed the allowance amount initially recognized. There were no incremental impairment charges recorded during the fiscal year ended March 31, 2022. Income Taxes We file a consolidated tax return with all of our legal subsidiaries. Our tax returns are periodically reviewed by various taxing authorities.
Reversals of the allowance for credit losses are permitted and should not exceed the allowance amount initially recognized. There was a $2.0 million net impairment charge recorded in fiscal 2023. Income Taxes We file a consolidated tax return with all of our legal subsidiaries. Our tax returns are periodically reviewed by various taxing authorities.
As part of executing this strategy, we leverage the brand recognition of U-Haul with our full line of moving and self-storage related products and services and the convenience of our broad geographic presence.
We accomplish this by providing a seamless and integrated supply chain to the “do-it-yourself” moving and storage market. As part of executing this strategy, we leverage the brand recognition of U-Haul with our full line of moving and self-storage related products and services and the convenience of our broad geographic presence.
Critical Accounting Policies and Estimates Our financial statements have been prepared in accordance with the generally accepted accounting principles (“GAAP”) in the United States. The methods, estimates and judgments we use in applying our accounting policies can have a significant impact on the results we report in our financial statements.
The methods, estimates and judgments we use in applying our accounting policies can have a significant impact on the results we report in our financial statements.
Property and Casualty Insurance 2021 Compared with 2020 Net premiums were $89.7 million and $70.3 million for the years ended December 31, 2021 and 2020, respectively. A significant portion of Repwest’s premiums are from policies sold in conjunction with U-Haul rental transactions. The premium growth corresponded with the increased moving and storage transactions at U-Haul.
Property and Casualty Insurance 2022 Compared with 2021 Net premiums were $96.2 million and $89.7 million for the years ended December 31, 2022 and 2021, respectively. A significant portion of Repwest’s premiums are from policies sold in conjunction with U-Haul moving and storage transactions and generally correspond to the related activity at U-Haul during the same period.
Life Insurance Net cash provided (used) by operating activities was $91.8 million, $87.1 million and $72.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. The increase in operating cash flows was primarily due to timing of settlement of payables and receivables and an increase in collected investment income offset by the reduced collected premiums.
Life Insurance Net cash provided by operating activities was $99.8 million, $91.8 million and $87.1 million for the years ended December 31, 2022, 2021 and 2020, respectively. The increase in operating cash flows was primarily due to an increase in accounts payable due to the timing of settlements. This was offset by a decrease in investment and premium income.
Recent Accounting Pronouncements Please see Note 3, Accounting Policies, of the Notes to Consolidated Financial Statements included in Item 8: Financial Statements and Supplementary Data, of this Annual Report for more information. 19 Results of Operations AMERCO and Consolidated Subsidiaries Fiscal 2022 Compared with Fiscal 2021 Listed below, on a consolidated basis, are revenues for our major product lines for fiscal 2022 and fiscal 2021: Year Ended March 31, 2022 2021 (In thousands) Self-moving equipment rentals $ 3,958,807 $ 3,083,317 Self-storage revenues 617,120 477,262 Self-moving and self-storage products and service sales 351,447 344,929 Property management fees 35,194 31,603 Life insurance premiums 111,027 121,609 Property and casualty insurance premiums 86,518 68,779 Net investment and interest income 148,261 122,938 Other revenue 431,373 291,548 Consolidated revenue $ 5,739,747 $ 4,541,985 Self-moving equipment rental revenues increased $875.5 million during fiscal 2022, compared with fiscal 2021.
Recent Accounting Pronouncements Please see Note 3, Accounting Policies, of the Notes to Consolidated Financial Statements included in Item 8: Financial Statements and Supplementary Data, of this Annual Report for more information. 20 Results of Operations U-Haul Holding Company and Consolidated Subsidiaries Fiscal 2023 Compared with Fiscal 2022 Listed below, on a consolidated basis, are revenues for our major product lines for fiscal 2023 and fiscal 2022: Year Ended March 31, 2023 2022 (In thousands) Self-moving equipment rentals $ 3,877,917 $ 3,958,807 Self-storage revenues 744,492 617,120 Self-moving and self-storage products and service sales 357,286 351,447 Property management fees 37,073 35,194 Life insurance premiums 99,149 111,027 Property and casualty insurance premiums 93,209 86,518 Net investment and interest income 176,679 148,261 Other revenue 478,886 431,373 Consolidated revenue $ 5,864,691 $ 5,739,747 Self-moving equipment rental revenues decreased $80.9 million during fiscal 2023, compared with fiscal 2022.
This was offset by $5.9 million decrease in Medicare supplement benefits from the declined policies in force and a small $0.3 million decrease in life benefits. 23 Amortization of deferred acquisition costs (“DAC”), sales inducement asset (“SIA“) and the value of business acquired (“VOBA”) was $33.9 million and $28.3 million for the years ended December 31, 2021 and 2020, respectively.
Medicare supplement benefits decreased by $3.2 million from fewer policies in force. Benefits on the annuity supplemental contracts decreased $0.2 million. Amortization of deferred acquisition costs (“DAC”), sales inducement asset (“SIA“) and the value of business acquired (“VOBA”) was $27.9 million and $33.9 million for the years ended December 31, 2022 and 2021, respectively.
Consequently, all references to our insurance subsidiaries’ years 2021, 2020 and 2019 correspond to fiscal 2022, 2021 and 2020 for AMERCO. Overall Strategy Our overall strategy is to maintain our leadership position in the North American “do-it-yourself” moving and storage industry. We accomplish this by providing a seamless and integrated supply chain to the “do-it-yourself” moving and storage market.
Consequently, all references to our insurance subsidiaries’ years 2022, 2021 and 2020 correspond to fiscal 2023, 2022 and 2021 for U-Haul Holding Company. Overall Strategy Our overall strategy is to maintain our leadership position in the North American “do-it-yourself” moving and storage industry.
This was partially offset by a $1.0 million decrease in Medicare supplement DAC Amortization from a decline in the in-force. Liquidity and Capital Resources We believe our current capital structure is a positive factor that will enable us to pursue our operational plans and goals and provide us with sufficient liquidity for the foreseeable future.
Liquidity and Capital Resources We believe our current capital structure is a positive factor that will enable us to pursue our operational plans and goals and provide us with sufficient liquidity for the foreseeable future.
Self-storage data for our owned storage locations follows: Year Ended March 31, 2022 2021 (In thousands, except occupancy rate) Unit count as of March 31 601 539 Square footage as of March 31 50,366 45,746 Average monthly number of units occupied 471 376 Average monthly occupancy rate based on unit count 82.6% 71.8% Average monthly square footage occupied 41,379 33,700 During fiscal 2022, we added approximately 4.6 million net rentable square feet, a 10% increase, with approximately 1.5 million of that occurring during the fourth quarter of fiscal 2022.
Self-storage data for our owned storage locations follows: Year Ended March 31, 2023 2022 (In thousands, except occupancy rate) Unit count as of March 31 673 601 Square footage as of March 31 56,382 50,366 Average monthly number of units occupied 535 471 Average monthly occupancy rate based on unit count 83.4% 82.6% Average monthly square footage occupied 46,257 41,379 During fiscal 2023, we added approximately 6.0 million net rentable square feet, a 13% increase compared to fiscal 2022 additions.
Net investment and interest income were $25.4 million and $16.5 million for the years ended December 31, 2021 and 2020, respectively. The main driver of the change in net investment income was the increase in valuation of unaffiliated common stock of $7.4 million.
Net investment and interest income were $7.3 million and $25.4 million for the years ended December 31, 2022 and 2021, respectively. The main driver of the change in net investment income was the decrease in valuation of unaffiliated common stock of $16.6 million; these stocks were not sold and no actual economic losses have been recognized.
A summary of our consolidated cash flows for fiscal 2022, 2021 and 2020 is shown in the table below: Years Ended March 31, 2022 2021 2020 (In thousands) Net cash provided by operating activities $ 1,946,235 $ 1,535,395 $ 1,075,513 Net cash used by investing activities (1,867,176) (1,129,529) (1,766,649) Net cash provided by financing activities 1,433,155 287,353 512,320 Effects of exchange rate on cash (2,089) 6,441 (533) Net increase (decrease) in cash flow 1,510,125 699,660 (179,349) Cash at the beginning of the period 1,194,012 494,352 673,701 Cash at the end of the period $ 2,704,137 $ 1,194,012 $ 494,352 Net cash provided by operating activities increased $410.8 million in fiscal 2022, compared with fiscal 2021.
For detailed information regarding our debt obligations, please see Note 9, Borrowings, of the Notes to Consolidated Financial Statements. 25 A summary of our consolidated cash flows for fiscal 2023, 2022 and 2021 is shown in the table below: Years Ended March 31, 2023 2022 2021 (In 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 Effects of exchange rate on cash (11,633) (2,089) 6,441 Net increase (decrease) in cash flow (643,613) 1,510,125 699,660 Cash at the beginning of the period 2,704,137 1,194,012 494,352 Cash at the end of the period $ 2,060,524 $ 2,704,137 $ 1,194,012 Net cash provided by operating activities decreased $216.6 million in fiscal 2023, compared with fiscal 2022.
Purchases of property, plant and equipment increased $695.1 million. Reinvestment in the rental fleet was less than originally anticipated due to delays in receiving new equipment from manufacturers; however, the level of reinvestment in the rental fleet has increased in comparison with fiscal 2021. We have also increased our investment in new self-storage acquisitions and development during fiscal 2022.
Reinvestment in the rental fleet was less than our projection due to delays in receiving new equipment from our original equipment manufacturers during fiscal 2023; however, the level of reinvestment in the rental fleet has increased in comparison to fiscal 2022. Cash from the sales of property, plant and equipment increased $78.1 million largely due to fleet sales.
Sales of self-moving and self-storage products and services increased $6.5 million during fiscal 2022, compared with fiscal 2021, primarily due to increased sales of moving supplies and propane offset by decreases in hitch sales. Life insurance premiums decreased $10.6 million during fiscal 2022, compared with fiscal 2021 primarily due to decreased Medicare supplement premiums.
Sales of self-moving and self-storage products and services increased $5.8 million during fiscal 2023, compared with fiscal 2022, primarily due to increased hitch and propane sales partially offset by a 1% decrease in the sales of moving supplies.
Other revenue increased $139.0 million during fiscal 2022, compared with fiscal 2021, caused primarily by growth in our U-Box ® program. 22 Total costs and expenses increased $496.2 million during fiscal 2022, compared with fiscal 2021.
Other revenue increased $47.4 million during fiscal 2023, compared with fiscal 2022, caused primarily by growth in our U-Box ® program. 23 Total costs and expenses increased $350.6 million during fiscal 2023, compared with fiscal 2022. Operating expenses increased $345.7 million.
This was a mix of existing storage locations we acquired and new development. Sales of self-moving and self-storage products and services increased $6.5 million during fiscal 2022, compared with fiscal 2021, primarily due to increased sales of moving supplies and propane offset by decreases in hitch sales.
Sales of self-moving and self-storage products and services increased $5.8 million during fiscal 2023, compared with fiscal 2022, primarily due to increased hitch and propane sales partially offset by a 1% decrease in the sales of moving supplies.
Net operating expenses were $42.5 million and $35.5 million for the years ended December 31, 2021 and 2020, respectively. The change was due to an increase in commissions offset by an increase in loss adjusting fees and subrogation income. Benefits and losses expenses were $22.4 million and $18.6 million for the years ended December 31, 2021 and 2020, respectively.
Net operating expenses were $45.0 million and $42.5 million for the years ended December 31, 2022 and 2021, respectively. The change was primarily due to an increase in commissions from higher premiums. Benefits and losses expenses were $21.5 million and $22.4 million for the years ended December 31, 2022 and 2021, respectively. The decrease was due to favorable loss experience.
As a result of the above-mentioned changes in revenues and expenses, earnings from operations increased to $1,645.0 million for fiscal 2022, compared with $961.1 million for fiscal 2021.
Net losses on the disposal or retirement of land and buildings increased $9.7 million as fiscal 2022 included a condemnation gain of $4.9 million. As a result of the above-mentioned changes in revenues and expenses, earnings from operations decreased to $1,444.1 million for fiscal 2023, compared with $1,645.0 million for fiscal 2022.
Property and casualty insurance premiums increased $17.7 million during fiscal 2022, compared with fiscal 2021. A significant portion of Repwest’s premiums are from policies sold in conjunction with U-Haul rental transactions. The premium increase corresponded with the increased moving and storage transactions at U-Haul during the same period.
A significant portion of Repwest’s premiums are from policies sold in conjunction with U-Haul moving and storage transactions and generally correspond to the related activity at U-Haul during the same period. Net investment and interest income increased $28.4 million during fiscal 2023, compared with fiscal 2022.
While each of these loans typically contains provisions governing the amount that can be borrowed in relation to specific assets, the overall structure is flexible with no limits on overall Company borrowings.
Our borrowing strategy has primarily focused on asset-backed financing and rental equipment leases. As part of this strategy, we seek to ladder maturities and fix interest rates. While each of these loans typically contains provisions governing the amount that can be borrowed in relation to specific assets, the overall structure is flexible with no limits on overall Company borrowings.
These refund claims total approximately $366 million, of which we have received approximately $243 million in fiscal 2022, which are reflected in Prepaid expenses. These amounts are expected to provide us additional liquidity whenever received.
These refund claims total approximately $366 million, of which we have already received approximately $243 million, with the remaining amount reflected in prepaid expenses. These amounts are expected to provide us additional liquidity whenever received. It is possible future legislation could negatively impact our ability to receive these tax refunds.
As of March 31, 2022 (or as otherwise indicated), cash and cash equivalents, other financial assets (receivables, short-term investments, other investments, fixed maturities, and related party assets) and debt obligations of each operating segment were: Moving & Storage Property and Casualty Insurance (a) Life Insurance (a) (In thousands) Cash and cash equivalents $ 2,643,213 $ 10,800 $ 50,124 Other financial assets 228,159 468,705 3,057,868 Debt obligations 6,022,497 – – (a) As of December 31, 2021 As of March 31, 2022, Moving and Storage had available borrowing capacity under existing credit facilities of $80.0 million.
As of March 31, 2023 (or as otherwise indicated), cash and cash equivalents, other financial assets (receivables, short-term investments, other investments, fixed maturities, and related party assets) and debt obligations of each operating segment were: Moving & Storage Property and Casualty Insurance (a) Life Insurance (a) (In thousands) Cash and cash equivalents $ 2,034,242 $ 11,276 $ 15,006 Other financial assets 428,018 446,977 2,744,196 Debt obligations (b) 6,143,350 – – (a) As of December 31, 2022 (b) Excludes ($35,308) of debt issuance costs As of March 31, 2023, Moving and Storage had available borrowing capacity under existing credit facilities of $465.0 million.
Year Ended March 31, 2022 2021 (In thousands) Moving and storage Revenues $ 5,398,267 $ 4,231,674 Earnings from operations before equity in earnings of subsidiaries 1,577,226 906,863 Property and casualty insurance Revenues 115,043 86,737 Earnings from operations 49,780 32,498 Life insurance Revenues 238,812 232,634 Earnings from operations 19,538 22,876 Eliminations Revenues (12,375) (9,060) Earnings from operations before equity in earnings of subsidiaries (1,547) (1,090) Consolidated Results Revenues 5,739,747 4,541,985 Earnings from operations 1,644,997 961,147 Total costs and expenses increased $514.0 million during fiscal 2022, compared with fiscal 2021.
Year Ended March 31, 2023 2022 (In thousands) Moving and storage Revenues $ 5,567,714 $ 5,398,267 Earnings from operations before equity in earnings of subsidiaries 1,396,122 1,577,226 Property and casualty insurance Revenues 103,512 115,043 Earnings from operations 36,570 49,780 Life insurance Revenues 206,100 238,812 Earnings from operations 12,935 19,538 Eliminations Revenues (12,635) (12,375) Earnings from operations before equity in earnings of subsidiaries (1,521) (1,547) Consolidated Results Revenues 5,864,691 5,739,747 Earnings from operations 1,444,106 1,644,997 Total costs and expenses increased $325.8 million during fiscal 2023, compared with fiscal 2022.
Net gains from the disposal of rental equipment increased $160.1 million from an increase in resale values. Depreciation expense associated with our rental fleet increased $17.5 million to $504.2 million. Depreciation expense on all other assets, largely from buildings and improvements, increased $15.5 million to $192.8 million. Gains on the disposal of real estate increased $7.4 million.
Net gains from the disposal of rental equipment increased $32.9 million from an increase in resale values combined with additional units sold. Depreciation expense on all other assets, largely from buildings and improvements, increased $20.6 million to $213.4 million.
U-Haul's growth plan in self-storage also includes the expansion of the U-Haul Storage Affiliate program, which does not require significant capital. 25 Net capital expenditures (purchases of property, plant and equipment less proceeds from the sale of property, plant and equipment and lease proceeds) were $1,513.3 million, $904.0 million and $1,622.0 million for fiscal 2022, 2021 and 2020, respectively.
Net capital expenditures (purchases of property, plant and equipment less proceeds from the sale of property, plant and equipment and lease proceeds) at Moving and Storage were $2,025.6 million, $1,513.3 million and $904.0 million for fiscal 2023, 2022 and 2021, respectively.
The Company has traditionally financed the acquisition of self-storage properties to support U-Haul's growth through debt financing and funds from operations.
Our allocation between debt and lease financing can change from year to year based upon financial market conditions which may alter the cost or availability of financing options. 26 The Company has traditionally funded the acquisition of self-storage properties to support U-Haul's growth through debt financing and funds from operations.
Insurance reserves for Property and Casualty Insurance and U-Haul take into account losses incurred based upon actuarial estimates and are management’s best approximation of future payments. These estimates are based upon past claims experience and current claim trends as well as social and economic conditions such as changes in legal theories and inflation.
These estimates are based upon past claims experience and current claim trends as well as social and economic conditions such as changes in legal theories and inflation. These reserves consist of case reserves for reported losses and a provision for incurred but not reported (“IBNR”) losses, both reduced by applicable reinsurance recoverables, resulting in a net liability.
Life Insurance Life Insurance manages its financial assets to meet policyholder and other obligations including investment contract withdrawals and deposits. Life Insurance's net deposits for the year ended December 31, 2021 were $110.0 million. State insurance regulations may restrict the amount of dividends that can be paid to stockholders of insurance companies.
Life Insurance's net deposits for the year ended December 31, 2022 were $6.8 million. State insurance regulations may restrict the amount of dividends that can be paid to stockholders of insurance companies. As a result, Life Insurance's assets are generally not available to satisfy the claims of U-Haul Holding Company or its legal subsidiaries.
The revenue improvement was in both the In-town and one-way markets and primarily came from increased transactions along with average revenue per transaction. These improvements were spread across trucks, trailer and towing devices. Compared to the same period last year, we increased the number of retail locations and independent dealers.
Transactions, revenue and average miles driven per transaction decreased. These declines were more pronounced in our one-way markets. Compared to the same period last year, we increased the number of retail locations, independent dealers, trucks, and trailers in the rental fleet. Self-storage revenues increased $127.4 million during fiscal 2023, compared with fiscal 2022.
The revenue improvement was in both the In-town and one-way markets and primarily came from increased transactions along with average revenue per transaction. These improvements were spread across trucks, trailer and towing devices. Compared to the same period last year, we increased the number of retail locations and independent dealers.
Transactions, revenue and average miles driven per transaction decreased. These declines were more pronounced in our one-way markets. Compared to the same period last year, we increased the number of retail locations, independent dealers, trucks, and trailers in the rental fleet. Self-storage revenues increased $127.4 million during fiscal 2023, compared with fiscal 2022.
Life premiums decreased $2.2 million due to the decrease in sales of single premium life products offset by the increased final expense renewal premiums. Premiums on the remaining lines of business increased $0.5 million. Deferred annuity deposits were $332.5 million or $138.8 million below the prior year and are accounted for on the balance sheet as deposits rather than premiums.
Medicare Supplement premiums decreased $7.2 million from policy decrements offset by premium rate increases. Life insurance premiums decreased $4.4 million. Premiums on annuity supplemental contracts decreased $0.3 million from fewer annuitizations. Deferred annuity deposits were $326.5 million or $6.0 million below the prior year and are accounted for on the balance sheet as deposits rather than premiums.
The increase in 2021 compared with 2020 resulted from net earnings of $39.4 million and a decrease in accumulated other comprehensive income of $5.9 million. Property and Casualty Insurance does not use debt or equity issues to increase capital and therefore has no direct exposure to capital market conditions other than through its investment portfolio.
Property and Casualty Insurance does not use debt or equity issues to increase capital and therefore has no direct exposure to capital market conditions other than through its investment portfolio. 27 Life Insurance Life Insurance manages its financial assets to meet policyholder and other obligations including investment contract withdrawals and deposits.
Assumptions include expected mortality and morbidity experience, policy lapses and surrenders, current asset yields and expenses, and expected interest rate yields. The Company periodically performs a gross premium valuation and reviews original assumptions, including capitalized expenses which reduce the gross premium valuation, to evaluate whether the assets and liabilities are adequate and whether a loss reserve should be recognized.
The Company periodically performs a gross premium valuation and reviews original assumptions, including capitalized expenses which reduce the gross premium valuation, to evaluate whether the assets and liabilities are adequate and whether a loss reserve should be recognized. 19 Insurance reserves for Property and Casualty Insurance and U-Haul take into account losses incurred based upon actuarial estimates and are management’s best approximation of future payments.
For more information, please see Note 20, Statutory Financial Information of Insurance Subsidiaries, of the Notes to Consolidated Financial Statements included in Part II, Item 8 of this Annual Report. 26 Our Life Insurance operating segment stockholders’ equity was $440.9 million, $479.2 million, and $417.4 million as of December 31, 2021, 2020 and 2019, respectively.
Oxford had a statutory net loss as of December 31, 2022, so no dividends can be distributed in calendar year 2023. For more information, please see Note 21, Statutory Financial Information of Insurance Subsidiaries, of the Notes to Consolidated Financial Statements included in Part II, Item 8 of this Annual Report.
Management considers several factors including cost and tax consequences when selecting a method to fund capital expenditures. Our allocation between debt and lease financing can change from year to year based upon financial market conditions which may alter the cost or availability of financing options.
Management considers several factors including cost and tax consequences when selecting a method to fund capital expenditures.
The increase in losses was the result of an increase in premiums. Life Insurance 2021 Compared with 2020 Net premiums were $111.0 million and $121.6 million for the years ended December 31, 2021 and 2020, respectively. Medicare Supplement premiums decreased $8.9 million from the policy decrements offset by premium rate increases.
As a result of the above-mentioned changes in revenues and expenses, pretax earnings from operations were $36.6 million and $49.8 million for the twelve months ended December 31, 2022 and 2021, respectively. Life Insurance 2022 Compared with 2021 Net premiums were $99.1 million and $111.0 million for the years ended December 31, 2022 and 2021, respectively.
The decrease in deferred annuity deposits is a result of highly competitive rates and exceptionally high sales in the prior year. Net investment and interest income was $123.8 million and $107.7 million for the years ended December 31, 2021 and 2020, respectively. Investment income from fixed maturities and mortgage loans increased $14.2 million on a larger invested assets base.
The decrease in deferred annuity deposits is a result of low sales at the beginning of the year improving as the year progressed. Net investment income was $102.4 million and $123.8 million for the years ended December 31, 2022 and 2021, respectively. The realized loss on derivatives used as hedges to fixed indexed annuities was $12.6 million.
Interest expense for fiscal 2022 was $167.4 million, compared with $163.5 million for fiscal 2021 due to an increase in our outstanding debt of $1,353.6 million in fiscal 2022 compared with fiscal 2021. This was partially offset by lower interest rates on the debt added in fiscal 2022 compared with fiscal 2021.
Interest expense for fiscal 2023 was $224.0 million, compared with $167.4 million for fiscal 2022 due to an increase in our average outstanding debt of $871.6 million in fiscal 2023 compared with fiscal 2022 combined with a higher average cost of debt. Income tax expense was $294.9 million for fiscal 2023, compared with $352.2 million for fiscal 2022.
Cash from the sales of property, plant and equipment increased $85.8 million largely due to fleet sales. For our insurance subsidiaries, net cash used in investing activities increased $124.1 million due to increased investment purchases. Net cash provided by financing activities increased $1,145.8 million in fiscal 2022, compared with fiscal 2021.
Net cash used in investing activities increased $554.2 million in fiscal 2023, compared with fiscal 2022. Purchases of property, plant and equipment increased $587.4 million.
Self-storage revenues increased $139.9 million during fiscal 2022, compared with fiscal 2021. The average monthly number of occupied units increased by 25%, or 95,000 units during fiscal 2022 compared with the same period last year.
The average monthly number of occupied units increased by 14%, or 63,800 units during fiscal 2023 compared with the same period last year. Over the course of the fiscal year our average revenue per occupied square foot increased 9%. The Company owns and manages self-storage facilities. Self-storage revenues reported in the consolidated financial statements represent Company-owned locations only.
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Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Market Risk — interest-rate, FX, commodity exposure
8 edited+2 added−0 removed6 unchanged
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Market Risk — interest-rate, FX, commodity exposure
8 edited+2 added−0 removed6 unchanged
2022 filing
2023 filing
Biggest changeIf the LIBOR were to increase 100 basis points, the increase in interest expense on the variable rate debt would decrease future earnings and cash flows by $9.1 million annually (after consideration of the effect of the above derivative contracts). Certain senior mortgages have an anticipated repayment date and a maturity date.
Biggest changeOf this amount, $615.0 million is not fixed through interest rate swaps. If the Secured Overnight Funding Rate (“SOFR”) were to increase 100 basis points, the increase in interest expense on the variable rate debt would decrease future earnings and cash flows by $6.2 million annually (after consideration of the effect of the above derivative contracts).
The change in fair value of the call options includes the gains or losses recognized at the expiration of the option term and the changes in fair value for open contracts. Foreign Currency Exchange Rate Risk The exposure to market risk for changes in foreign currency exchange rates relates primarily to our Canadian business.
The change in fair value of the call options includes the gains or losses recognized at the expiration of the option term and the changes in fair value for open contracts. 31 Foreign Currency Exchange Rate Risk The exposure to market risk for changes in foreign currency exchange rates relates primarily to our Canadian business.
Approximately 5.1%, 4.6% and 4.6% of our revenue was generated in Canada in fiscal 2022, 2021 and 2020. The result of a 10% change in the value of the U.S. dollar relative to the Canadian dollar would not be material to net income. We typically do not hedge any foreign currency risk since the exposure is not considered material.
Approximately 5.0%, 5.0% and 4.6% of our revenue was generated in Canada in fiscal 2023, 2022 and 2021, respectively. The result of a 10% change in the value of the U.S. dollar relative to the Canadian dollar would not be material to net income. We typically do not hedge any foreign currency risk since the exposure is not considered material.
This interest rate risk is the price sensitivity of a fixed income security to changes in interest rates. As part of our insurance companies’ asset and liability management, actuaries estimate the cash flow patterns of our existing liabilities to determine their duration.
Additionally, our insurance subsidiaries’ fixed income investment portfolios expose us to interest rate risk. This interest rate risk is the price sensitivity of a fixed income security to changes in interest rates. As part of our insurance companies’ asset and liability management, actuaries estimate the cash flow patterns of our existing liabilities to determine their duration.
At December 31, 2021 and 2020, these derivative hedges had a net market value of $7.5 million and $6.6 million, with notional amounts of $416.7 million and $282.7 million, respectively. These derivative instruments are included in Investments, other; on the consolidated balance sheets.
At December 31, 2022 and 2021, these derivative hedges had a net market value of $4.3 million and $7.5 million, with notional amounts of $465.7 million and $416.7 million, respectively. These derivative instruments are included in Investments, other; on the consolidated balance sheets.
If these senior mortgages are not repaid by the anticipated repayment date the interest rate on these mortgages would increase from the current fixed rate. We are using the anticipated repayment date for our maturity schedule. 29 Additionally, our insurance subsidiaries’ fixed income investment portfolios expose us to interest rate risk.
Certain senior mortgages have an anticipated repayment date and a maturity date. If these senior mortgages are not repaid by the anticipated repayment date the interest rate on these mortgages would increase from the current fixed rate. We are using the anticipated repayment date for our maturity schedule.
Following is a summary of our interest rate swaps agreements at March 31, 2022: Notional Amount Fair Value Effective Date Expiration Date Fixed Rate Floating Rate (In thousands) $ 85,000 $ (193) 6/28/2019 6/15/2022 1.76% 1 Month LIBOR 75,000 (186) 6/28/2019 6/30/2022 1.78% 1 Month LIBOR 75,000 (208) 6/28/2019 10/31/2022 1.76% 1 Month LIBOR As of March 31, 2022, we had $1,145.3 million of variable rate debt obligations.
Following is a summary of our interest rate swaps agreements at March 31, 2023: Notional Amount Fair Value Effective Date Expiration Date Fixed Rate Floating Rate (In thousands) $ 60,347 $ 1,501 7/15/2022 7/15/2032 2.86% 1 Month SOFR 73,250 1,945 8/1/2022 8/1/2026 2.72% 1 Month SOFR 72,750 1,865 8/1/2022 8/31/2026 2.75% 1 Month SOFR 30 As of March 31, 2023, we had $821.3 million of variable rate debt obligations.
These outcomes are compared to the characteristics of the assets that are currently supporting these liabilities assisting management in determining an asset allocation strategy for future investments that management believes will mitigate the overall effect of interest rates. We use derivatives to hedge our equity market exposure to indexed annuity products sold by our Life Insurance company.
These outcomes are compared to the characteristics of the assets that are currently supporting these liabilities assisting management in determining an asset allocation strategy for future investments that management believes will mitigate the overall effect of interest rates. The following table illustrates the interest rate risk sensitivity of our fixed maturity portfolio as of March 31, 2023 and 2022.
Added
This table measures the effect of a parallel shift in interest rates (as represented by the U.S. Treasury curve) on the fair value of the fixed maturity portfolio. The data measures the change in fair value arising from an immediate and sustained change in interest rates in increments of 100 basis points.
Added
Market Value of Mixed Maturity Portfolio As of March 31, Change in Interest Rates (a) 2023 2022 (In thousands) -300bps $ 3,100,972 $ 3,262,844 -200bps 2,970,228 3,153,114 -100bps 2,839,624 2,992,011 No change 2,709,037 2,821,092 +100bps 2,578,654 2,650,410 +200bps 2,448,348 2,479,737 +300bps 2,318,149 2,309,224 (a) In basis points We use derivatives to hedge our equity market exposure to indexed annuity products sold by our Life Insurance company.