U-Haul 2011 Annual Report Download - page 22

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17
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
General
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. 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. Next, we discuss our results of operations for fiscal 2011
compared with fiscal 2010, and for fiscal 2010 compared with fiscal 2009 which is followed by an analysis
of 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. We conclude this MD&A by discussing our outlook for fiscal 2012.
This MD&A should be read in conjunction with the other sections of this Annual Report on Form 10-K,
including Item 1: Business, Item 6: Selected Financial Data and Item 8: Financial Statements and
Supplementary Data. The various sections of this MD&A contain a number of forward-looking statements,
as discussed under the caption, Cautionary Statements Regarding Forward-Looking Statements, all of
which are based on our current expectations and could be affected by the uncertainties and risk factors
described throughout this filing and particularly under the section Item 1A: Risk Factors. Our actual
results may differ materially from these forward-looking statements.
AMERCO has a fiscal year that ends on the 31st of March for each year that is referenced. Our
insurance company subsidiaries have fiscal years that end on the 31st of December 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 financial position or results of operations. The Company discloses all material events occurring
during the intervening period. Consequently, all references to our insurance subsidiaries’ years 2010,
2009 and 2008 correspond to fiscal 2011, 2010 and 2009 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. 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.
Our primary focus is to provide our customers with a wide selection of moving rental equipment,
convenient self-storage rental facilities and related moving and self-storage products and services. We
are able to expand our distribution and improve customer service by increasing the amount of moving
equipment and storage rooms available for rent, expanding the number of independent dealers in our
network and expanding and taking advantage of our eMove® capabilities.
Property and Casualty Insurance operating segment is focused on providing and administering property
and casualty insurance to U-Haul and its customers, its independent dealers and affiliates.
Life Insurance operating segment is focused on long-term capital growth through direct writing and
reinsuring of life, Medicare supplement and annuity products in the senior marketplace.
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.