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Borrowings | 3 Months Ended
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Dec. 31, 2011
Debt Disclosure [Abstract] |
4. Borrowings | 4. Borrowings Long-Term Debt Long-term debt was as follows:
|  |  |  |  |  |  |  | December 31, |  |  | March 31, |
|  | 2012 Rate (a) |  |  | Maturities |  |  | 2011 |  |  | 2011 |
|  |  |  |  |  |  |  | (Unaudited) |  |  |  |
|  |  |  |  |  |  |  | (In thousands) |
Real estate loan (amortizing term) |  |  | 6.93 | % |  |  | 2018 |  |  | $ | 247,500 |  |  | $ | 255,000 |
Real estate loan (revolving credit) |  |  | - |  |  |  | 2018 |  |  |  | - |  |  |  | - |
Real estate loan (amortizing term) |  |  | 2.17 | % |  |  | 2016 |  |  |  | 25,675 |  |  |  | 11,222 |
Real estate loan (revolving credit) |  |  | 1.77 | % |  |  | 2012 |  |  |  | 23,920 |  |  |  | - |
Senior mortgages |  |  | 5.47%-5.75 | % |  |  | 2015 |  |  |  | 463,138 |  |  |  | 476,783 |
Working capital loan (revolving credit) |  |  | - |  |  |  | 2012 |  |  |  | - |  |  |  | - |
Fleet loans (amortizing term) |  |  | 3.52%-7.95 | % |  |  | 2012-2018 |  |  |  | 406,751 |  |  |  | 325,591 |
Fleet loans (securitization) |  |  | 4.90%-5.56 | % |  |  | 2014-2017 |  |  |  | 235,038 |  |  |  | 271,290 |
Other obligations |  |  | 3.00%-9.50 | % |  |  | 2012-2031 |  |  |  | 111,191 |  |  |  | 57,956 |
Less: Other obligations held by subsidiaries |  |  |  |  |  |  |  |  |  |  | (5,237 | ) |  |  | - |
Total notes, loans and leases payable |  |  |  |  |  |  |  |  |  | $ | 1,507,976 |  |  | $ | 1,397,842 |
(a) Interest rate as of December 31, 2011, including the effect of applicable hedging instruments. |  |  |  |  |
Real Estate Backed Loans Real Estate Loan Amerco Real Estate Company and certain of its subsidiaries and U-Haul Company of Florida are borrowers under a Real Estate Loan. The loan has a final maturity date of August 2018. The loan is comprised of a term loan facility with initial availability of $300.0 million and a revolving credit facility with a current availability of $198.8 million. As of December 31, 2011, the outstanding balance on the Real Estate Loan was $247.5 million and the Company had the full $198.8 million available to be drawn. U-Haul International, Inc. is a guarantor of this loan. The amortizing term portion of the Real Estate Loan requires monthly principal and interest payments, with the unpaid loan balance and accrued and unpaid interest due at maturity. The revolving credit portion of the Real Estate Loan requires monthly interest payments when drawn, with the unpaid loan balance and any accrued and unpaid interest due at maturity. The Real Estate Loan is secured by various properties owned by the borrowers. The interest rate for the amortizing term portion, per the provisions of the amended Loan Agreement, is the applicable London Inter-Bank Offer Rate ("LIBOR") plus the applicable margin. At December 31, 2011, the applicable LIBOR was 0.28% and the applicable margin was 1.50%, the sum of which was 1.78%. The rate on the term facility portion of the Real Estate Loan is hedged with an interest rate swap fixing the rate at 6.93% based on current margin. The interest rate for the revolving credit facility, per the provision of the amended Loan Agreement, is the applicable LIBOR plus the applicable margin. The margin ranges from 1.50% to 2.00%. The default provisions of the Real Estate Loan include non-payment of principal or interest and other standard reporting and change-in-control covenants. There are limited restrictions regarding our use of the funds. Amerco Real Estate Company and a subsidiary of U-Haul International, Inc. entered into a revolving credit construction loan effective June 29, 2006. This loan was modified and extended on June 27, 2011. The loan is now comprised of a term loan facility with initial availability of $26.1 million and a final maturity of June 30, 2016. As of December 31, 2011, the outstanding balance was $25.7 million. This Real Estate Loan requires monthly principal and interest payments, with the unpaid loan balance and any accrued and unpaid interest due at maturity. The interest rate, per the provision of the Loan Agreement, is the applicable LIBOR plus a margin of 1.90%. At December 31, 2011, the applicable LIBOR was 0.27% and the margin was 1.90%, the sum of which was 2.17%. U-Haul International, Inc. and AMERCO are guarantors of this loan. The default provisions of the loan include non-payment of principal or interest and other standard reporting and change-in-control covenants. On April 29, 2011, Amerco Real Estate Company and U-Haul Company of Florida entered into a revolving credit agreement for $100.0 million. This agreement has a maturity of April 2012 with an option for a one year extension. As of December 31, 2011, the Company had $76.1 million available to be drawn. The interest rate is the applicable LIBOR plus a margin of 1.50%. At December 31, 2011, the applicable LIBOR was 0.27% and the margin was 1.50%, the sum of which was 1.77%. AMERCO and U-Haul International, Inc. are guarantors of this facility. The default provisions of the loan include non-payment of principal or interest and other standard reporting and change-in-control covenants. Senior Mortgages Various subsidiaries of Amerco Real Estate Company and U-Haul International, Inc. are borrowers under certain senior mortgages. These senior mortgage loan balances as of December 31, 2011 were in the aggregate amount of $463.1 million and mature in 2015. The senior mortgages require average monthly principal and interest payments with the unpaid loan balance and accrued and unpaid interest due at maturity. These senior mortgages are secured by certain properties owned by the borrowers. The interest rates, per the provisions of these senior mortgages, range between 5.47% and 5.75%. Amerco Real Estate Company and U-Haul International, Inc. have provided limited guarantees of these senior mortgages. The default provisions of these senior mortgages include non-payment of principal or interest and other standard reporting and change-in-control covenants. There are limited restrictions regarding our use of the funds. Working Capital Loans Amerco Real Estate Company is a borrower under an asset backed working capital loan. The maximum amount that can be drawn at any one time is $25.0 million. At December 31, 2011, the Company had the full $25.0 million available to be drawn. The loan is secured by certain properties owned by the borrower. The loan agreement provides for revolving loans, subject to the terms of the loan agreement with final maturity in November 2012. The loan requires monthly interest payments with the unpaid loan balance and accrued and unpaid interest due at maturity. U-Haul International, Inc. and AMERCO are the guarantors of this loan. The default provisions of the loan include non-payment of principal or interest and other standard reporting and change-in-control covenants. The interest rate, per the provision of the Loan Agreement, is the applicable LIBOR plus a margin of 1.50%. Fleet Loans Rental Truck Amortizing Loans U-Haul International, Inc. and several of its subsidiaries are borrowers under amortizing term loans. The balance of the loans as of December 31, 2011 was $291.8 million with the final maturities between April 2012 and December 2018. The Amortizing Loans require monthly principal and interest payments, with the unpaid loan balance and accrued and unpaid interest due at maturity. These loans were used to purchase new trucks. The interest rates, per the provision of the Loan Agreements, are the applicable LIBOR plus a margin between 0.90% and 2.63%. At December 31, 2011, the applicable LIBOR was between 0.27% and 0.28% and applicable margins were between 0.90% and 2.63%. The interest rates are hedged with interest rate swaps fixing the rates between 3.85% and 7.07% based on current margins. Additionally, $6.0 million of these loans are carried at a fixed rate of 7.95%. AMERCO and U-Haul International, Inc. are guarantors of these loans. The default provisions of these loans include non-payment of principal or interest and other standard reporting and change-in-control covenants. On December 31, 2009 a subsidiary of U-Haul International, Inc. entered into an $85.0 million term note that was used to fund cargo van and pickup acquisitions for the past two years. This term note was amended on August 26, 2011. The amount of the term note was increased to $95.0 million. On December 22, 2011, the Company entered into another term loan for $20.0 million. The final maturity date of these notes is August 2016. The agreements contain options to extend the maturity through May 2017. These notes are secured by the purchased equipment and the corresponding operating cash flows associated with their operation. These notes have fixed interest rates between 3.52% and 3.53%. AMERCO and U-Haul International, Inc. are guarantors of this loan. The default provisions of these loans include non-payment of principal or interest and other standard reporting and change-in-control covenants. Rental Truck Securitizations U-Haul S Fleet and its subsidiaries (collectively, "USF") issued a $217.0 million asset-backed note ("2007 Box Truck Note") on June 1, 2007. USF is a bankruptcy-remote special purpose entity wholly-owned by U-Haul International, Inc. The net proceeds from the securitized transaction were used to finance new box truck purchases throughout fiscal 2008. U.S. Bank, NA acts as the trustee for this securitization. The 2007 Box Truck Note has a fixed interest rate of 5.56% with an expected final maturity of February 2014. At December 31, 2011, the outstanding balance was $102.3 million. The note is secured by the box trucks that were purchased and the corresponding operating cash flows associated with their operation. The 2007 Box Truck Note has the benefit of a financial guaranty insurance policy which guarantees the timely payment of interest on and the ultimate payment of the principal of this note. 2010 U-Haul S Fleet and its subsidiaries (collectively, "2010 USF") issued a $155.0 million asset-backed note ("2010 Box Truck Note") on October 28, 2010. 2010 USF is a bankruptcy-remote special purpose entity wholly-owned by U-Haul International, Inc. The net proceeds from the securitized transaction were used to finance new box truck purchases. U.S. Bank, NA acts as the trustee for this securitization. The 2010 Box Truck Note has a fixed interest rate of 4.90% with an expected final maturity of October 2017. At December 31, 2011, the outstanding balance was $132.7 million. The note is secured by the box trucks being purchased and the corresponding operating cash flows associated with their operation. The 2007 Box Truck Note and 2010 Box Truck Note are subject to certain covenants with respect to liens, additional indebtedness of the special purpose entities, the disposition of assets and other customary covenants of bankruptcy-remote special purpose entities. The default provisions of these notes include non-payment of principal or interest and other standard reporting and change-in-control covenants. Other Obligations The Company entered into capital leases for new equipment between April 2008 and December 2011, with terms of the leases between 3 and 7 years. At December 31, 2011, the balance of these leases was $100.1 million. In February 2011, the Company and US Bank, National Association (the "Trustee") entered into the U-Haul Investors Club Indenture. The Company and the Trustee entered into this indenture to provide for the issuance of notes ("U-Notes") by the Company directly to investors over our proprietary website, uhaulinvestorsclub.com. The U-Notes are secured by various types of collateral including rental equipment and real estate. U-Notes are issued in smaller series that vary as to principal amount, interest rate and maturity. U-Notes are obligations of the Company and secured by the associated collateral; they are not guaranteed by any of the Company's affiliates or subsidiaries. At December 31, 2011 the aggregate outstanding principal balance of the U-Notes issued was $11.1 million with interest rates between 3.00% and 8.00% and maturity dates between 2013 and 2031. Annual Maturities of Notes, Loans and Leases Payable The annual maturities of long-term debt as of December 31, 2011 for the next five years and thereafter are as follows:
|  | Year Ended December 31, |
|  | 2012 |  |  | 2013 |  |  | 2014 |  |  | 2015 |  |  | 2016 |  |  | Thereafter |
|  | (Unaudited) |
|  | (In thousands) |
Notes,loans and leases payable,secured |  | $ | 213,687 |  |  | $ | 102,624 |  |  | $ | 169,917 |  |  | $ | 492,398 |  |  | $ | 260,735 |  |  | $ | 268,615 |
Interest on Borrowings Interest Expense Components of interest expense include the following:
|  | Quarter Ended December 31, |
|  | 2011 |  |  | 2010 |
|  | (Unaudited) |
|  | (In thousands) |
Interest expense |  | $ | 16,009 |  |  | $ | 15,453 |
Capitalized interest |  |  | (76 | ) |  |  | (80 | )
Amortization of transaction costs |  |  | 1,198 |  |  |  | 1,046 |
Interest expense resulting from derivatives |  |  | 5,613 |  |  |  | 5,817 |
Total interest expense |  | $ | 22,744 |  |  | $ | 22,236 |
|  | Nine Months Ended December 31, |
|  | 2011 |  |  | 2010 |
|  | (Unaudited) |
|  | (In thousands) |
Interest expense |  | $ | 47,888 |  |  | $ | 44,464 |
Capitalized interest |  |  | (154 | ) |  |  | (349 | )
Amortization of transaction costs |  |  | 3,292 |  |  |  | 3,200 |
Interest expense resulting from derivatives |  |  | 17,314 |  |  |  | 18,173 |
Total interest expense |  | $ | 68,340 |  |  | $ | 65,488 |
Interest paid in cash including payments related to derivative contracts, amounted to $19.8 million and $19.7 million for the third quarter of fiscal 2012 and 2011, respectively and $60.7 million and $58.5 million for the first nine months of fiscal 2012 and 2011, respectively. Interest Rates Interest rates and Company borrowings were as follows:
|  | Revolving Credit Activity |
|  | Quarter Ended December 31, |
|  | 2011 |  |  | 2010 |
|  | (Unaudited) |
|  | (In thousands, except interest rates) |
Weighted average interest rate during the quarter |  |  | 1.80 | % |  |  | 1.69 | %
Interest rate at the end of the quarter |  |  | 1.77 | % |  |  | 0.00 | %
Maximum amount outstanding during the quarter |  | $ | 38,920 |  |  | $ | 15,000 |
Average amount outstanding during the quarter |  | $ | 37,779 |  |  | $ | 14,185 |
Facility fees |  | $ | 109 |  |  | $ | 57 |
|  | Revolving Credit Activity |
|  | Nine Months Ended December 31, |
|  | 2011 |  |  | 2010 |
|  | (Unaudited) |
|  | (In thousands, except interest rates) |
Weighted average interest rate during the first nine months |  |  | 1.72 | % |  |  | 1.77 | %
Interest rate at the end of the first nine months |  |  | 1.77 | % |  |  | 0.00 | %
Maximum amount outstanding during the first nine months |  | $ | 38,920 |  |  | $ | 111,000 |
Average amount outstanding during the first nine months |  | $ | 24,685 |  |  | $ | 44,396 |
Facility fees |  | $ | 416 |  |  | $ | 170 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 + Details
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