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AMERCO AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
F-22
Note 11. Derivatives
We manage exposure to changes in market interest rates. Our use of derivative instruments is limited
to highly effective interest rate swaps to hedge the risk of changes in cash flows (future interest
payments) attributable to changes in LIBOR swap rates, the designated benchmark interest rate being
hedged on certain of our LIBOR indexed variable rate debt and a variable rate operating lease. The
interest rate swaps effectively fix our interest payments on certain LIBOR indexed variable rate debt. We
monitor our positions and the credit ratings of its counterparties and do not currently anticipate non-
performance by the counterparties. Interest rate swap agreements are not entered into for trading
purposes.
Original variable
rate debt and
lease amount
Agreement Date
Effective
Date
Expiration Date
Designated
cash flow
hedge date
(In millions)
$
300.0
8/16/2006
8/18/2006
8/10/2018
8/4/2006
14.7
(a)
7/6/2010
8/15/2010
7/15/2017
7/6/2010
25.0
(a)
4/26/2011
6/1/2011
6/1/2018
6/1/2011
50.0
(a)
7/29/2011
8/15/2011
8/15/2018
7/29/2011
20.0
(a)
8/3/2011
9/12/2011
9/10/2018
8/3/2011
15.1
(b)
3/27/2012
3/28/2012
3/28/2019
3/26/2012
25.0
4/13/2012
4/16/2012
4/1/2019
4/12/2012
44.3
1/11/2013
1/15/2013
12/15/2019
1/11/2013
(a) forward swap
(b) operating lease
As of March 31, 2016, the total notional amount of our variable interest rate swaps on debt and an
operating lease was $282.1 million and $9.3 million, respectively.
The derivative fair values located in Accounts payable and accrued expenses in the balance sheets
were as follows:
Liability Derivative Fair Value as of
March 31, 2016
March 31, 2015
(In thousands)
Interest rate contracts designated as hedging instruments
$
14,845
$
24,484
The Effect of Interest Rate
Contracts on the Statements of Operations
Years Ended March 31,
2016
2015
2014
(In thousands)
Loss recognized in income on interest rate contracts
$
12,699
$
14,329
$
17,174
Gain recognized in AOCI on interest rate contracts (effective
portion)
$
(9,721)
$
(8,203)
$
(19,317)
Loss reclassified from AOCI into income (effective portion)
$
12,616
$
14,358
$
16,691
(Gain) loss recognized in income on interest rate contracts
(ineffective portion and amount excluded from effectiveness
testing)
$
83
$
(29)
$
483