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Borrowings | 9 Months Ended
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Dec. 31, 2016
Debt Disclosure [Abstract] |
4. Borrowings | Long-Term Debt Long-term debt was as follows:
|  |  |  |  | December 31, |  | March 31,
| 2016 Rate (a) |  | Maturities |  | 2016 |  | 2016
|  |  |  |  | (Unaudited) |  |
|  |  |  |  | (In thousands)
Real estate loan (amortizing term) | 2.17% - 6.93% |  | 2023 | $ | 171,789 | $ | 205,000
Senior mortgages | 2.24% - 5.50% |  | 2017 - 2038 |  | 1,256,832 |  | 1,121,897
Working capital loans (revolving credit) | 2.24% |  | 2018 |  | 85,000 |  | –
Fleet loans (amortizing term) | 1.95% - 4.76% |  | 2017 - 2023 |  | 216,582 |  | 218,998
Fleet loans (securitization) | 4.90% |  | 2017 |  | 53,876 |  | 62,838
Fleet loans (revolving credit) | 1.76% - 2.46% |  | 2018 - 2021 |  | 454,000 |  | 347,000
Capital leases (rental equipment) | 2.12% - 7.16% |  | 2017 - 2024 |  | 917,792 |  | 672,825
Other obligations | 3.00% - 8.00% |  | 2017 - 2045 |  | 67,318 |  | 60,200
Notes, loans and leases payable |  |  |  |  | 3,223,189 |  | 2,688,758
Less: Debt issuance costs |  |  |  |  | (24,754) |  | (23,362)
Total notes, loans and leases payable |  |  |  | $ | 3,198,435 | $ | 2,665,396
(a) Interest rate as of December 31, 2016, 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. As of December 31, 2016, the outstanding balance on the Real Estate Loan was $171.8 million. The Real Estate Loan requires monthly principal and interest payments, with the unpaid loan balance and accrued and unpaid interest due at maturity. The Real Estate Loan is secured by various properties owned by the borrowers. The final maturity of the term loan is April 2023. The interest rate, per the provisions of the amended loan agreement, is the applicable London Inter-Bank Offer Rate (“LIBOR”) plus the applicable margin. At December 31, 2016, the applicable LIBOR was 0.67% and the applicable margin was 1.50%, the sum of which was 2.17%, which was applied to $40.7 million of the Real Estate Loan. The rate of the remaining balance of $131.1 million of the Real Estate Loan is hedged with an interest rate swap fixing the rate a t 6.93% based on current margin. The interest rate swap expires in August 2018, after which date the remaining balance will incur interest at a rate of LIBOR plus a margin of 1.50%. The default provisions of the Real Estate Loan include non-payment of prin cipal or interest and other standard reporting and change-in-control covenants. There are limited restrictions regarding our use of the funds. 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, 2016 were in the aggregate amount of $1,256.8 million and mature between 2017 and 2038. The senior mortgages require monthly principal and interest payments, except for one mortgage that only requires interest payments, with the unpaid loan balance and accrued and unpaid interest due at maturity. The senior mortgages are secured by certain properties owned by the borrowers. The fixed interest rates, per the provisions of the senior mortgages, range between 3.72% and 5.50%. Certain senior mortgages have an anticipated repayment date and a maturity date. If these senior mortgages are not repaid by the anticipated repayment date the interest rate on these mortgages would incr ease from the current fixed rate. We are using the anticipated repayment date for our maturity schedule. Additionally, $159.0 million of these loans have variable interest rates comprised of applicable LIBOR base rates between 0.63% and 0.70% plus margins between 2.00% and 2.50%, the sum s of which were between 2.63% and 3.20%. Amerco Real Estate Company and U-Haul International, Inc. have provided limited guarantees of the senior mortgages. The default provisions of the 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 $50.0 million. At December 31, 2016 the full $50.0 million was available to be drawn. This loan is secured by certain properties owned by the borrower. This loan agreement provides for revolving loan s, subject to the terms of the loan agreement. The final maturity of this loan is September 2018. This loan requires monthly interest payments with the unpaid loan balance and accrued and unpaid interest due at maturity. The interest rate is the applicable LIBOR plus a margin of 1.25%. AMERCO is the guarantor 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. Various subsidiaries of Amerco Real Estate C ompany and U-Haul International, Inc. are borrowers under an asset backed working capital loan. The maximum amount that can be drawn at any one time is $85.0 million. At December 31, 2016, the outstanding balance was $85.0 million. This loan is secured by certain properties owned by the borrower. This loan agreement provides for term loans, subject to the terms of the loan agreement. The final maturity of the loan is November 2018. This loan requires monthly interest payments with the unpaid loan balance an d accrued and upaid interest due at maturity. The interest rate, per the provision of the loan agreement, is the applicable LIBOR plus the applicable margin. At December 31, 2016, the applicable LIBOR was 0.74% and the margin was 1.50%, the sum of which wa s 2.24%. AMERCO is the guarantor 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. 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, 2016 was $216.6 million with the final maturities between July 2017 and September 2023. The Amortizing Loans require monthly princip al 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 the applicable margins. At December 31, 2016, the applicable LIBOR was between 0.62% and 0.70% and applicable margins were between 1.72% and 2.50%. The interest rates are hedged with interest rate swaps fixing the rates between 2.82% and 4.76% based on current margins. Additionally, $146.9 million of these loans are carried at fixed rates ranging between 1.95% and 3.94%. AMERCO and, in some cases, U-Haul International, Inc. are guarantors of these loans. The default provisions of these loans include non-payment of princi pal or interest and other standard reporting and change-in-control covenants. Rental Truck Securitizations 2010 U-Haul S Fleet and its subsidiaries (collectively, “2010 USF”) issued a $155.0 million asset-backed note (“2010 Box Truck Note”). 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 Truc k Note has a fixed interest rate of 4.90% with an expected final maturity of October 2017. At December 31, 2016, the outstanding balance was $53.9 million. The note is secured by the box trucks purchased and the corresponding operating cash flows associate d with their operation. The 2010 Box Truck Note is subject to certain covenants with respect to liens, additional indebtedness of the special purpose entity, the disposition of assets and other customary covenants of bankruptcy-remote special purpose enti ties. The default provisions of this note include non-payment of principal or interest and other standard reporting and change-in-control covenants. Rental Truck Revolvers Various subsidiaries of U-Haul International, Inc. entered into a revolving fleet lo an for $150 million, which can be increased to a maximum of $225 million. This loan matures in September 2018. The interest rate, per the provision of the Loan Agreement, is the applicable LIBOR plus the applicable margin. At December 31, 2016, the applica ble LIBOR was 0.61% and the margin was 1.15%, the sum of which was 1.76%. Only interest is paid on the loan until the last nine months when principal is due monthly. As of December 31, 2016, the outstanding balance was $142.0 million. Various subsidiaries of U-Haul International, Inc. entered into a revolving fleet loan for $100 million, which can be increased to a maximum of $215 million. This loan matures in March 2020. The interest rate, per the provision of the Loan Agreement, is the applicable LIBOR pl us the applicable margin. At December 31, 2016, the applicable LIBOR was 0.62% and the margin was 1.15%, the sum of which was 1.77%. Only interest is paid on the loan until the last nine months when principal is due monthly. As of December 31, 2016, the ou tstanding balance was $147.0 million. Various subsidiaries of U-Haul International, Inc. entered into a revolving fleet loan for $50 million. The loan matures in May 2019. This agreement contains an option to extend the maturity through January 2020. The interest rate, per the provision of the Loan Agreement is the applicable LIBOR plus the applicable margin. At De cember 31, 2016, the applicable LIBOR was 0.61% and the margin was 1.85%, the sum of which was 2.46%. Only interest is paid during the first five years of the loan with principal due upon maturity. As of December 31, 2016, the outstanding balance was $40.0 million. Various subsidiaries of U-Haul International, Inc. entered into a revolving fleet loan for $125 million. The loan matures in November 2021. In October 2016, this loan was amended and the availablity was increased to $150.0 million. The interest r ate, per the provision of the Loan Agreement is the applicable LIBOR plus the applicable margin. At December 31, 2016, the applicable LIBOR was 0.62% and the margin was 1.15%, the sum of which was 1.77%. Only interest is paid on the loan until the last nin e months when principal is due monthly. As of December 31, 2016, the outstanding balance was $125.0 million. Capital Leases We regularly enter into capital leases for new equipment with the terms of the leases between five and seven years. During the first nine months of fiscal 2017, we entered into $379.4 million of new capital leases. At December 31, 2016, the balance of our capital leases was $917.8 million. The net book value of the corresponding capitalized assets was $1,256.5 million at December 31, 2 016. Other Obligations In February 2011, AMERCO and U.S. Bank, NA (the “Trustee”) entered into the U-Haul Investors Club® Indenture. AMERCO and the Trustee entered into this indenture to provide for the issuance of notes by us directly to investors over o ur proprietary website, uhaulinvestorsclub.com (“U-Notes”). 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 maturi ty. 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, 2016, the aggregate outstanding principal balance of the U-Notes issued was $7 1.9 million of which $4.6 million is held by our insurance subsidiaries and eliminated in consolidation. Interest rates range between 3.00% and 8.00% and maturity dates range between 2017 and 2045. Oxford is a member of the Federal Home Loan Bank (“FHLB”) and as such the FHLB has made a deposit with Oxford. As of September 30, 2016, the deposit balance was $30.0 million which Oxford pays a fixed interest rate of 0.57% due on the maturity date of March 31, 2017. The balance of the deposit is included within Liabilities from investment contracts on the consolidated balance sheet. Annual Maturities of Notes, Loans and Leases Payable The annual maturities of long-term debt, including capital leases and excluding debt issuance costs, as of December 31, 2016 for the next five years and thereafter are as follows:
|  | Twelve Months Ending December 31,
|  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | Thereafter
|  | (Unaudited)
|  | (In thousands)
Notes, loans and leases payable, secured | $ | 423,432 | $ | 566,646 | $ | 431,682 | $ | 292,576 | $ | 306,774 | $ | 1,202,079
Interest on Borrowings Interest Expense Components of interest expense include the following:
|  | Quarter Ended December 31,
|  | 2016 |  | 2015
|  | (Unaudited)
|  | (In thousands)
Interest expense | $ | 27,441 | $ | 22,452
Capitalized interest |  | (1,119) |  | (958)
Amortization of transaction costs |  | 863 |  | 807
Interest expense resulting from derivatives |  | 1,818 |  | 3,106
Total interest expense |  | 29,003 |  | 25,407
Amortization on early extinguishment of debt |  | 499 |  | –
Total | $ | 29,502 | $ | 25,407
|  | Nine Months Ended December 31,
|  | 2016 |  | 2015
|  | (Unaudited)
|  | (In thousands)
Interest expense | $ | 77,849 | $ | 61,756
Capitalized interest |  | (3,417) |  | (2,380)
Amortization of transaction costs |  | 2,510 |  | 2,298
Interest expense resulting from derivatives |  | 6,920 |  | 9,806
Total interest expense |  | 83,862 |  | 71,480
Amortization on early extinguishment of debt |  | 499 |  | –
Total |  | 84,361 |  | 71,480
Interest paid in cash, including payments related to derivative contracts, amounted to $28.7 million and $25.0 million for the third quarter of fiscal 2017 and 2016, respectively and $84.0 million and $69.6 million for the first nine months of fiscal 2017 and 2016, respectively. Interest Rates Interest rates and Company borrowings were as follows:
|  | Revolving Credit Activity
|  | Quarter Ended December 31,
|  | 2016 |  | 2015
|  | (Unaudited)
|  | (In thousands, except interest rates)
Weighted average interest rate during the quarter |  | 1.82% |  | 1.66%
Interest rate at the end of the quarter |  | 1.89% |  | 1.69%
Maximum amount outstanding during the quarter | $ | 597,000 | $ | 265,000
Average amount outstanding during the quarter | $ | 550,304 | $ | 258,207
Facility fees | $ | 10 | $ | 25
|  | Revolving Credit Activity
|  | Nine Months Ended December 31,
|  | 2016 |  | 2015
|  | (Unaudited)
|  | (In thousands, except interest rates)
Weighted average interest rate during the period |  | 1.76% |  | 1.65%
Interest rate at the end of the period |  | 1.89% |  | 1.69%
Maximum amount outstanding during the period | $ | 597,000 | $ | 265,000
Average amount outstanding during the period | $ | 450,880 | $ | 224,582
Facility fees | $ | 99 | $ | 169

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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 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: 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 + Details
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