U-Haul 2016 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 of the 2016 U-Haul annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 130

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130

AMERCO AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
F-14
In February 2016, the FASB issued ASU 2016-02, Leases - (Topic 842). This update will require
lessees to recognize all leases with terms greater than 12 months on their balance sheet as lease
liabilities with a corresponding right-of-use asset. This update maintains the dual model for lease
accounting, requiring leases to be classified as either operating or finance, with lease classification
determined in a manner similar to existing lease guidance. The basic principle is that leases of all types
convey the right to direct the use and obtain substantially all the economic benefits of an identified asset,
meaning they create an asset and liability for lessees. Lessees will classify leases as either finance
leases (comparable to current capital leases) or operating leases (comparable to current operating
leases). Costs for a finance lease will be split between amortization and interest expense, with a single
lease expense reported for operating leases. This update also will require both qualitative and
quantitative disclosures to help investors and other financial statement users better understand the
amount, timing, and uncertainty of cash flows arising from leases. . The guidance is effective for interim
periods and annual period beginning after December 15, 2018; however early adoption is permitted. We
are currently evaluating the impact of the adoption of this standard on our consolidated financial
statements. For the last nine years, we have reported a discounted estimate of the off-balance sheet
lease obligations in our MD&A.
From time to time, new accounting pronouncements are issued by the FASB or the SEC that are
adopted by us as of the specified effective date. Unless otherwise discussed, these ASU’s entail technical
corrections to existing guidance or affect guidance related to specialized industries or entities and
therefore will have minimal, if any, impact on our financial position or results of operations upon adoption.
Note 4. 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 21,883; 12,470; and 33,173 as of March 31, 2016, 2015, and 2014,
respectively.
Note 5. Reinsurance Recoverables and Trade Receivables, Net
Reinsurance recoverables and trade receivables, net were as follows:
March 31,
2016
2015
(In thousands)
Reinsurance recoverable
$
115,653
$
130,734
Trade accounts receivable
34,350
32,493
Paid losses recoverable
1,697
1,690
Accrued investment income
18,797
15,609
Premiums and agents' balances
1,163
1,082
Independent dealer receivable
390
154
Other receivables
3,745
8,897
175,795
190,659
Less: Allowance for doubtful accounts
(585)
(790)
$
175,210
$
189,869
Note 6. 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 $17.3 million and $16.4 million at
December 31, 2015 and 2014, respectively.