U-Haul 2016 Annual Report Download - page 63

F-7
AMERCO AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Basis of Presentation
AMERCO, a Nevada Corporation (“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. We disclose
any material events occurring during the intervening period. Consequently, all references to our insurance
subsidiaries’ years 2015, 2014 and 2013 correspond to fiscal 2016, 2015 and 2014 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.
Note 2. Principles of Consolidation
We apply ASC 810 - Consolidation (“ASC 810”) in our principles of consolidation. ASC 810 addresses
arrangements where a company does not hold a majority of the voting or similar interests of a variable
interest entity (“VIE”). A company is required to consolidate a VIE if it has determined it is the primary
beneficiary. ASC 810 also addresses the policy when a company owns a majority of the voting or similar
rights and exercises effective control.
As promulgated by ASC 810, a VIE is not self-supportive due to having one or both of the following
conditions: (i) it has an insufficient amount of equity for it to finance its activities without receiving
additional subordinated financial support or (ii) its owners do not hold the typical risks and rights of equity
owners. This determination is made upon the creation of a variable interest and is re-assessed on an on-
going basis should certain changes in the operations of a VIE, or its relationship with the primary
beneficiary trigger a reconsideration under the provisions of ASC 810. After a triggering event occurs the
most recent facts and circumstances are utilized in determining whether or not a company is a VIE, which
other company(s) have a variable interest in the entity, and whether or not the company’s interest is such
that it is the primary beneficiary.
We will continue to monitor our relationships with the other entities regarding who is the primary
beneficiary, which could change based on facts and circumstances of any reconsideration events.
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 term “Company,” “we,” “us” or “our” refers to AMERCO and
all of its legal subsidiaries.
Description of Operating Segments
AMERCO has three reportable segments. They are Moving and Storage, Property and Casualty
Insurance and Life Insurance.
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.