U-Haul 2009 Annual Report Download - page 21

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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 business 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.
We then discuss our results of operations for fiscal 2009 compared with fiscal 2008, and for fiscal 2008 compared
with fiscal 2007 which are 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 2010.
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 any material events occurring during the intervening period. Consequently, all references to our
insurance subsidiaries’ years 2008, 2007 and 2006 correspond to fiscal 2009, 2008 and 2007 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 growing eMove capabilities.
Property and Casualty Insurance is focused on providing and administering property and casualty insurance to U-
Haul and its customers, its independent dealers and affiliates.
Life Insurance 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 current reportable segments are (and former reportable segment was):
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,
Life Insurance, comprised of Oxford and its subsidiaries, and
SAC Holding II and its subsidiaries (through October 2007).
Refer to Note 1 Basis of Presentation, Note 22 Financial Information by Geographic Area and Note 22A
Consolidating Financial Information by Industry Segment of the Notes to Consolidated Financial Statements
included in this Form 10-K.