[x]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended September 30, 2019
or
[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the transition period from __________________ to __________________
Commission
File Number
Registrant, State of Incorporation,
Address and Telephone Number
I.R.S. Employer
Identification No.
001-11255
AMERCO
88-0106815
(A Nevada Corporation)
5555 Kietzke LaneSuite 100
RenoNV89511
Telephone 775688-6300
N/A
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock, $0.25 par value
UHAL
NASDAQ Global Select Market
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x]No [ ]
Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule405 of RegulationS-T (§232.405 of this chapter) during the preceding 12months (or for such shorter period that the registrant was required to submit such files).Yes[x]No[ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer[x]Accelerated filer [ ]
Non-accelerated filer [ ]Smaller reporting company [ ]
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [x]
19,607,788 shares of AMERCO Common Stock, $0.25 par value, were outstanding at November 1, 2019.
TABLE OF CONTENTS
Page
PART I FINANCIAL INFORMATION
Item 1.
Financial Statements
a) Condensed Consolidated Balance Sheets as of September 30, 2019 (unaudited) and March 31, 2019
1
b) Condensed Consolidated Statements of Operations for the Quarters Ended September 30, 2019 and 2018 (unaudited)
2
c) Condensed Consolidated Statements of Operations for the Six Months Ended September 30, 2019 and 2018 (unaudited)
3
d) Condensed Consolidated Statements of Comprehensive Income (Loss) for the Quarters and Six Months Ended September 30, 2019 and 2018 (unaudited)
4
e) Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Quarter Ended September 30, 2019 and 2018 (unaudited)
5
f) Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Six Months Ended September 30, 2019 and 2018 (unaudited)
6
g) Condensed Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2019 and 2018 (unaudited)
7
h) Notes to Condensed Consolidated Financial Statements (unaudited)
8
Item 2
.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
44
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
61
Item 4.
Controls and Procedures
63
PART II OTHER INFORMATION
Item 1.
Legal Proceedings
64
Item 1A.
Risk Factors
64
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
64
Item 3.
Defaults Upon Senior Securities
64
Item 4.
Mine Safety Disclosures
64
Item 5.
Other Information
64
Item 6.
Exhibits
64
Part i Financial information
Item 1. Financial Statements
AMERCO AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED balance sheets
September 30,
March 31,
2019
2019
(Unaudited)
(In thousands, except share data)
ASSETS
Cash and cash equivalents
$
525,231
$
673,701
Reinsurance recoverables and trade receivables, net
222,481
224,785
Inventories and parts, net
102,357
103,504
Prepaid expenses
194,250
174,100
Investments, fixed maturities and marketable equities
2,413,350
2,235,397
Investments, other
320,992
300,736
Deferred policy acquisition costs, net
111,708
136,276
Other assets
72,432
78,354
Right of use assets - financing, net
1,185,629
0
Right of use assets - operating
105,298
–
Related party assets
12,902
30,889
5,266,630
3,957,742
Property, plant and equipment, at cost:
Land
1,016,918
976,454
Buildings and improvements
4,371,637
4,003,726
Furniture and equipment
716,287
689,780
Rental trailers and other rental equipment
495,264
590,039
Rental trucks
3,560,034
4,762,028
10,160,140
11,022,027
Less: Accumulated depreciation
(2,570,568)
(3,088,056)
Total property, plant and equipment, net
7,589,572
7,933,971
Total assets
$
12,856,202
$
11,891,713
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued expenses
$
546,260
$
556,873
Notes, loans and finance/capital leases payable, net
4,497,912
4,163,323
Operating lease liability
104,832
0
Policy benefits and losses, claims and loss expenses payable
1,022,134
1,011,183
Liabilities from investment contracts
1,720,995
1,666,742
Other policyholders' funds and liabilities
10,911
15,047
Deferred income
35,926
35,186
Deferred income taxes, net
859,164
750,970
Total liabilities
8,798,134
8,199,324
Commitments and contingencies (notes 4, 8, 9 and 10)
Stockholders' equity:
Series preferred stock, with or without par value, 50,000,000 shares authorized:
Series A preferred stock, with no par value, 6,100,000 shares authorized;
6,100,000 shares issued and none outstanding as of September 30 and March 31, 2019
Series B preferred stock, with no par value, 100,000 shares authorized; none
issued and outstanding as of September 30 and March 31, 2019
Serial common stock, with or without par value, 250,000,000 shares authorized:
Serial common stock of $0.25 par value, 10,000,000 shares authorized;
none issued and outstanding as of September 30 and March 31, 2019
Common stock, with $0.25 par value, 250,000,000 shares authorized:
Common stock of $0.25 par value, 250,000,000 shares authorized; 41,985,700
issued and 19,607,788 outstanding as of September 30 and March 31, 2019
10,497
10,497
Additional paid-in capital
453,761
453,326
Accumulated other comprehensive income (loss)
17,151
(66,698)
Retained earnings
4,255,906
3,976,962
Cost of common stock in treasury, net (22,377,912 shares as of September 30 and March 31, 2019)
(525,653)
(525,653)
Cost of preferred stock in treasury, net (6,100,000 shares as of September 30 and March 31, 2019)
(151,997)
(151,997)
Unearned employee stock ownership plan shares
(1,597)
(4,048)
Total stockholders' equity
4,058,068
3,692,389
Total liabilities and stockholders' equity
$
12,856,202
$
11,891,713
The accompanying notes are an integral part of these condensed consolidated financial statements.
1
AMERCO AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED Statements of operations
Quarter Ended September 30,
2019
2018
(Unaudited)
(In thousands, except share and per share amounts)
Revenues:
Self-moving equipment rentals
$
804,325
$
781,713
Self-storage revenues
104,965
91,493
Self-moving and self-storage products and service sales
73,121
72,913
Property management fees
7,233
7,192
Life insurance premiums
32,355
35,920
Property and casualty insurance premiums
18,365
16,283
Net investment and interest income
33,098
28,227
Other revenue
76,752
70,766
Total revenues
1,150,214
1,104,507
Costs and expenses:
Operating expenses
565,413
529,350
Commission expenses
86,099
85,334
Cost of sales
43,930
46,402
Benefits and losses
45,825
45,773
Amortization of deferred policy acquisition costs
6,515
5,899
Lease expense
6,356
8,170
Depreciation, net of gains on disposal of ($17,999 and $12,036, respectively)
151,553
132,625
Net (gains) losses on disposal of real estate
(217)
10
Total costs and expenses
905,474
853,563
Earnings from operations
244,740
250,944
Other components of net periodic benefit costs
(264)
(254)
Interest expense
(39,122)
(35,030)
Pretax earnings
205,354
215,660
Income tax expense
(49,028)
(52,118)
Earnings available to common stockholders
$
156,326
$
163,542
Basic and diluted earnings per common stock
$
7.97
$
8.35
Weighted average common stock outstanding: Basic and diluted
19,602,566
19,591,312
Related party revenues for the second quarter of fiscal 2020 and 2019, net of eliminations, were $7.2 million.
Related party costs and expenses for the second quarter of fiscal 2020 and 2019, net of eliminations, were $19.3 million and $19.0 million, respectively.
Please see Note 10, Related Party Transactions, of the Notes to Condensed Consolidated Financial Statements for more information on the related party revenues and costs and expenses.
The accompanying notes are an integral part of these condensed consolidated financial statements.
2
AMERCO AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED Statements of operations
Six Months Ended September 30,
2019
2018
(Unaudited)
(In thousands, except share and per share amounts)
Revenues:
Self-moving equipment rentals
$
1,552,921
$
1,498,315
Self-storage revenues
203,239
177,705
Self-moving and self-storage products and service sales
153,147
152,154
Property management fees
14,389
14,608
Life insurance premiums
65,065
72,808
Property and casualty insurance premiums
31,789
29,064
Net investment and interest income
68,847
52,832
Other revenue
140,066
126,598
Total revenues
2,229,463
2,124,084
Costs and expenses:
Operating expenses
1,099,885
1,025,904
Commission expenses
166,998
164,591
Cost of sales
92,859
96,283
Benefits and losses
94,831
94,327
Amortization of deferred policy acquisition costs
12,579
11,930
Lease expense
13,392
16,339
Depreciation, net of gains on disposal of ($34,677 and $28,331 respectively)
292,153
259,052
Net (gains) losses on disposal of real estate
(1,839)
10
Total costs and expenses
1,770,858
1,668,436
Earnings from operations
458,605
455,648
Other components of net periodic benefit costs
(527)
(507)
Interest expense
(78,010)
(70,284)
Pretax earnings
380,068
384,857
Income tax expense
(91,320)
(93,466)
Earnings available to common stockholders
$
288,748
$
291,391
Basic and diluted earnings per common stock
$
14.73
$
14.87
Weighted average common stock outstanding: Basic and diluted
19,600,211
19,590,946
Related party revenues for the first six months of fiscal 2020 and 2019, net of eliminations, were $14.4 million and $14.6 million, respectively.
Related party costs and expenses for the first six months of fiscal 2020 and 2019, net of eliminations, were $37.1 million and $36.2 million, respectively.
Please see Note 10, Related Party Transactions, of the Notes to Condensed Consolidated Financial Statements for more information on the related party revenues and costs and expenses.
The accompanying notes are an integral part of these condensed consolidated financial statements.
3
AMERCO AND CONSOLIDATED SUBSIDIARIES
Condensed consolidatED statements of COMPREHENSIVE INCOME (loss)
Quarter Ended September 30, 2019
Pre-tax
Tax
Net
(Unaudited)
(In thousands)
Comprehensive income:
Net earnings
$
205,354
$
(49,028)
$
156,326
Other comprehensive income (loss):
Foreign currency translation
629
629
Unrealized net gain on investments
52,651
(11,346)
41,305
Change in fair value of cash flow hedges
(840)
207
(633)
Amounts reclassified into earnings on hedging activities
(366)
89
(277)
Total comprehensive income
$
257,428
$
(60,078)
$
197,350
Quarter Ended September 30, 2018
Pre-tax
Tax
Net
(Unaudited)
(In thousands)
Comprehensive income:
Net earnings
$
215,660
$
(52,118)
$
163,542
Other comprehensive income (loss):
Foreign currency translation
1,113
1,113
Unrealized net loss on investments
(22,280)
4,679
(17,601)
Change in fair value of cash flow hedges
477
(117)
360
Amounts reclassified into earnings on hedging activities
(191)
47
(144)
Total comprehensive income
$
194,779
$
(47,509)
$
147,270
Six Months Ended September 30, 2019
Pre-tax
Tax
Net
(Unaudited)
(In thousands)
Comprehensive income:
Net earnings
$
380,068
$
(91,320)
$
288,748
Other comprehensive income (loss):
Foreign currency translation
3,611
3,611
Unrealized net gain on investments
104,478
(22,385)
82,093
Change in fair value of cash flow hedges
(2,034)
500
(1,534)
Amounts reclassified into earnings on hedging activities
(425)
104
(321)
Total comprehensive income
$
485,698
$
(113,101)
$
372,597
Six Months Ended September 30, 2018
Pre-tax
Tax
Net
(Unaudited)
(In thousands)
Comprehensive income:
Net earnings
$
384,857
$
(93,466)
$
291,391
Other comprehensive income (loss):
Foreign currency translation
(980)
(980)
Unrealized net loss on investments
(72,498)
15,225
(57,273)
Change in fair value of cash flow hedges
1,701
(418)
1,283
Amounts reclassified into earnings on hedging activities
(855)
210
(645)
Total comprehensive income
$
312,225
$
(78,449)
$
233,776
The accompanying notes are an integral part of these condensed consolidated financial statements.
4
Amerco and consolidated subsidiaries
condensed consolidated statements of changes in stockholders’ equity
Description
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive
Income (Loss)
Retained Earnings
Less: Treasury Common Stock
Less: Treasury Preferred Stock
Less: Unearned Employee Stock Ownership Plan Shares
Total Stockholders' Equity
(In thousands)
Balance as of June 30, 2019
$
10,497
$
453,535
$
(23,873)
$
4,109,384
$
(525,653)
$
(151,997)
$
(2,870)
$
3,869,023
Increase in market value of released ESOP shares
0
226
0
0
0
0
0
226
Release of unearned ESOP shares
0
0
0
0
0
0
1,347
1,347
Purchase of ESOP shares
0
0
0
0
0
0
(74)
(74)
Foreign currency translation
0
0
629
0
0
0
0
629
Unrealized net gain on investments, net of tax
0
0
41,305
0
0
0
0
41,305
Change in fair value of cash flow hedges, net of tax
0
0
(633)
0
0
0
0
(633)
Amounts reclassified into earnings on hedging activities
(277)
(277)
Net earnings
0
0
0
156,326
0
0
0
156,326
Common stock dividends: ($0.50 per share for fiscal 2020)
0
0
0
(9,804)
0
0
0
(9,804)
Net activity
0
226
41,024
146,522
0
0
1,273
189,045
Balance as of September 30, 2019
$
10,497
$
453,761
$
17,151
$
4,255,906
$
(525,653)
(151,997)
$
(1,597)
$
4,058,068
Balance as of June 30, 2018
$
10,497
$
452,862
$
(45,966)
$
3,763,339
$
(525,653)
$
(151,997)
$
(6,937)
$
3,496,145
Increase in market value of released ESOP shares
0
144
0
0
0
0
0
144
Release of unearned ESOP shares
0
0
0
0
0
0
2,694
2,694
Purchase of ESOP shares
0
0
0
0
0
0
(3,292)
(3,292)
Foreign currency translation
0
0
1,113
0
0
0
0
1,113
Unrealized net loss on investments, net of tax
0
0
(17,601)
0
0
0
0
(17,601)
Change in fair value of cash flow hedges, net of tax
0
0
360
0
0
0
0
360
Amounts reclassified into earnings on hedging activities
(144)
(144)
Net earnings
0
0
0
163,542
0
0
0
163,542
Common stock dividends: ($0.50 per share for fiscal 2019)
0
0
0
(9,794)
0
0
0
(9,794)
Net activity
0
144
(16,272)
153,748
0
0
(598)
137,022
Balance as of September 30, 2018
$
10,497
$
453,006
$
(62,238)
$
3,917,087
$
(525,653)
$
(151,997)
$
(7,535)
$
3,633,167
The accompanying notes are an integral part of these consolidated financial statements.
5
Amerco and consolidated subsidiaries
condensed consolidated statements of changes in stockholders’ equity
Description
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive
Income (Loss)
Retained Earnings
Less: Treasury Common Stock
Less: Treasury Preferred Stock
Less: Unearned Employee Stock Ownership Plan Shares
Total Stockholders' Equity
(In thousands)
Balance as of March 31, 2019
$
10,497
$
453,326
$
(66,698)
$
3,976,962
$
(525,653)
$
(151,997)
$
(4,048)
$
3,692,389
Increase in market value of released ESOP shares
0
435
0
0
0
0
0
435
Release of unearned ESOP shares
0
0
0
0
0
0
2,656
2,656
Purchase of ESOP shares
0
0
0
0
0
0
(205)
(205)
Foreign currency translation
0
0
3,611
0
0
0
0
3,611
Unrealized net gain on investments, net of tax
0
0
82,093
0
0
0
0
82,093
Change in fair value of cash flow hedges, net of tax
0
0
(1,534)
0
0
0
0
(1,534)
Amounts reclassified into earnings on hedging activities
(321)
(321)
Net earnings
0
0
0
288,748
0
0
0
288,748
Common stock dividends: ($0.50 per share for fiscal 2020)
0
0
0
(9,804)
0
0
0
(9,804)
Net activity
0
435
83,849
278,944
0
0
2,451
365,679
Balance as of September 30, 2019
$
10,497
$
453,761
$
17,151
$
4,255,906
$
(525,653)
(151,997)
$
(1,597)
$
4,058,068
Balance as of March 31, 2018
$
10,497
$
452,746
$
(4,623)
$
3,635,561
$
(525,653)
$
(151,997)
$
(7,823)
$
3,408,708
Increase in market value of released ESOP shares
0
260
0
0
0
0
0
260
Release of unearned ESOP shares
0
0
0
0
0
0
5,388
5,388
Purchase of ESOP shares
0
0
0
0
0
0
(5,100)
(5,100)
Foreign currency translation
0
0
(980)
0
0
0
0
(980)
Unrealized net loss on investments, net of tax
0
0
(57,273)
0
0
0
0
(57,273)
Change in fair value of cash flow hedges, net of tax
0
0
1,283
0
0
0
0
1,283
Amounts reclassified into earnings on hedging activities
(645)
(645)
Adjustment for adoption of ASU 2016 - 01
0
0
0
9,724
0
0
0
9,724
Net earnings
0
0
0
291,391
0
0
0
291,391
Common stock dividends: ($1.00 per share for fiscal 2019)
0
0
0
(19,589)
0
0
0
(19,589)
Net activity
0
260
(57,615)
281,526
0
0
288
224,459
Balance as of September 30, 2018
$
10,497
$
453,006
$
(62,238)
$
3,917,087
$
(525,653)
$
(151,997)
$
(7,535)
$
3,633,167
The accompanying notes are an integral part of these consolidated financial statements.
6
AMERCO AND CONSOLIDATED subsidiaries
Condensed consolidatED statements of cash flows
Six Months Ended September 30,
2019
2018
(Unaudited)
(In thousands)
Cash flows from operating activities:
Net earnings
$
288,748
$
291,391
Adjustments to reconcile net earnings to cash provided by operations:
Depreciation
326,830
287,383
Amortization of deferred policy acquisition costs
12,579
11,930
Amortization of premiums and accretion of discounts related to investments, net
6,481
6,457
Amortization of debt issuance costs
2,100
2,013
Interest credited to policyholders
26,584
17,726
Change in allowance for losses on trade receivables
(113)
309
Change in allowance for inventories and parts reserves
537
1,148
Net gains on disposal of personal property
(34,677)
(28,331)
Net (gains) losses on disposal of real estate
(1,839)
10
Net (gains) losses on sales of investments
(7,595)
55
Net (gains) losses on equity investments
(2,553)
1,344
Deferred income taxes
83,708
88,485
Net change in other operating assets and liabilities:
Reinsurance recoverables and trade receivables
2,471
(14,453)
Inventories and parts
613
(4,347)
Prepaid expenses
(21,908)
(17,709)
Capitalization of deferred policy acquisition costs
(10,370)
(12,926)
Other assets
525
58,139
Related party assets
(5,019)
6,181
Accounts payable and accrued expenses
60,587
57,744
Policy benefits and losses, claims and loss expenses payable
10,709
(49,774)
Other policyholders' funds and liabilities
(4,136)
3,302
Deferred income
2,077
(124)
Related party liabilities
1,425
(3,276)
Net cash provided by operating activities
737,764
702,677
Cash flows from investing activities:
Escrow deposits
5,573
1,362
Purchases of:
Property, plant and equipment
(1,589,371)
(1,114,544)
Short term investments
(20,380)
(22,335)
Fixed maturities investments
(178,626)
(239,972)
Equity securities
(83)
(957)
Preferred stock
0
(81)
Real estate
(368)
(218)
Mortgage loans
(19,660)
(24,132)
Proceeds from sales and paydowns of:
Property, plant and equipment
401,451
429,910
Short term investments
17,282
24,568
Fixed maturities investments
127,683
64,651
Preferred stock
0
1,125
Real estate
311
–
Mortgage loans
4,299
12,912
Net cash used by investing activities
(1,251,889)
(867,711)
Cash flows from financing activities:
Borrowings from credit facilities
658,745
313,299
Principal repayments on credit facilities
(143,634)
(182,955)
Payment of debt issuance costs
(2,301)
(1,420)
Finance/capital lease payments
(180,902)
(147,913)
Employee stock ownership plan stock
(206)
(137)
Common stock dividends paid
(19,600)
(29,385)
Net contribution from (to) related party
21,600
0
Investment contract deposits
105,846
179,608
Investment contract withdrawals
(78,177)
(71,228)
Net cash provided (used) by financing activities
361,371
59,869
Effects of exchange rate on cash
4,284
(1,783)
Decrease in cash and cash equivalents
(148,470)
(106,948)
Cash and cash equivalents at the beginning of period
673,701
759,388
Cash and cash equivalents at the end of period
$
525,231
$
652,440
The accompanying notes are an integral part of these condensed consolidated financial statements
7
amerco and consolidated subsidiaries
notes to condensed consolidated financial statements – (continued)
1.Basis of Presentation
AMERCO, a Nevada corporation (“AMERCO”), has a second fiscal quarter that ends on the 30th of September for each year that is referenced. Our insurance company subsidiaries have a second quarter that ends on the 30th of June for each year that is referenced. They have been consolidated on that basis. Our insurance companies’ financial reporting processes conform to calendar year reporting as required by state insurance departments. Management believes that consolidating their calendar year into our fiscal year financial statements does not materially affect the presentation of financial position or results of operations. We disclose material events, if any, occurring during the intervening period. Consequently, all references to our insurance subsidiaries’ years 2019 and 2018 correspond to fiscal 2020 and 2019 for AMERCO.
Accounts denominated in non-U.S. currencies have been translated into U.S. dollars. Certain amounts reported in previous years have been reclassified to conform to the current presentation.
The condensed consolidated balance sheet as of September 30, 2019 and the related condensed consolidated statements of operations, comprehensive income (loss), stockholders’ equity for the second quarter and first six months of fiscal 2020 and 2019 and cash flows for the six months of fiscal 2020 and 2019 are unaudited.
In our opinion, all adjustments necessary for the fair presentation of such condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. Interim results are not necessarily indicative of results for a full year. The information in this Quarterly Report on Form 10-Q (“Quarterly Report”) should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2019.
Intercompany accounts and transactions have been eliminated.
Description of Legal Entities
AMERCO is the holding company for:
U-Haul International, Inc. (“U-Haul”);
Amerco Real Estate Company (“Real Estate”);
Repwest Insurance Company (“Repwest”); and
Oxford Life Insurance Company (“Oxford”).
Unless the context otherwise requires, the terms “Company,” “we,” “us” or “our” refer to AMERCO and all of its legal subsidiaries.
Description of Operating Segments
AMERCO has three (3) reportable segments. They are Moving and Storage, Property and Casualty Insurance and Life Insurance.
The Moving and Storage operating segment (“Moving and Storage”) includes AMERCO, U-Haul and Real Estate and the wholly owned subsidiaries of U-Haul and Real Estate. Operations consist of the rental of trucks and trailers, sales of moving supplies, sales of towing accessories, sales of propane, and the rental of fixed and portable moving and storage units to the “do-it-yourself” mover and management of self-storage properties owned by others. Operations are conducted under the registered trade name U-Haul® throughout the United States and Canada.
8
The Property and Casualty Insurance operating segment (“Property and Casualty Insurance”) includes Repwest and its wholly owned subsidiaries and ARCOA Risk Retention Group (“ARCOA”). Property and Casualty Insurance provides loss adjusting and claims handling for U-Haul® through regional offices in the United States and Canada. Property and Casualty Insurance also underwrites components of the Safemove®, Safetow®, Safemove Plus®, Safestor® and Safestor Mobile® protection packages to U-Haul customers. The business plan for Property and Casualty Insurance includes offering property and casualty insurance products in other U-Haul-related programs. ARCOA is a group captive insurer owned by us and our wholly owned subsidiaries whose purpose is to provide insurance products related to our moving and storage business.
The Life Insurance operating segment (“Life Insurance”) includes Oxford and its wholly owned subsidiaries. Life Insurance provides life and health insurance products primarily to the senior market through the direct writing and reinsuring of life insurance, Medicare supplement and annuity policies.
2. Earnings per Share
Our earnings per share is calculated by dividing our earnings available to common stockholders by the weighted average common shares outstanding, basic and diluted.
The weighted average common shares outstanding exclude post-1992 shares of the employee stock ownership plan that have not been committed to be released. The unreleased shares, net of shares committed to be released, were 16,128 as of September 30, 2018. As of September 30, 2019, all of these shares have been released.
3. Investments
Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
We deposit bonds with insurance regulatory authorities to meet statutory requirements. The adjusted cost of bonds on deposit with insurance regulatory authorities was $29.4 million and $30.8 million as of September 30, 2019 and March 31, 2019, respectively.
Available-for-Sale Investments
Available-for-sale investments as of September 30, 2019 were as follows:
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses More than 12 Months
Gross
Unrealized
Losses Less than 12 Months
Estimated
Market
Value
(Unaudited)
(In thousands)
U.S. treasury securities and government obligations
