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Borrowings | 3 Months Ended
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Jun. 30, 2017
Debt Disclosure [Abstract] |
4. Borrowings | Long Term Debt Long term debt was as follows:
|  |  |  |  | June 30, |  | March 31,
| 2018 Rate (a) |  | Maturities |  | 2017 |  | 2017
|  |  |  |  | (Unaudited) |  |
|  |  |  |  | (In thousands)
Real estate loan (amortizing term) | 2.62% - 6.93% |  | 2023 | $ | 166,789 | $ | 169,289
Senior mortgages | 3.72% - 5.50% |  | 2022 - 2038 |  | 1,366,248 |  | 1,292,160
Working capital loan (revolving credit) | 2.51% |  | 2018 |  | 85,000 |  | 85,000
Fleet loans (amortizing term) | 1.95% - 4.76% |  | 2017 - 2024 |  | 341,313 |  | 324,977
Fleet loan (securitization) | 4.90% |  | 2017 |  | 50,055 |  | 52,112
Fleet loans (revolving credit) | 2.19% - 2.20% |  | 2018 - 2021 |  | 423,000 |  | 417,000
Capital leases (rental equipment) | 1.92% - 4.86% |  | 2017 - 2024 |  | 909,406 |  | 876,828
Other obligations | 2.75% - 8.00% |  | 2017 - 2047 |  | 70,216 |  | 69,867
Notes, loans and leases payable |  |  |  |  | 3,412,027 |  | 3,287,233
Less: Debt issuance costs |  |  |  |  | (25,176) |  | (24,353)
Total notes, loans and leases payable, net |  |  |  | $ | 3,386,851 | $ | 3,262,880
(a) Interest rate as of June 30, 2017, 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 June 30, 2017, the outstanding balance on the Real Estate Loan was $166.8 million. T he 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 June 30, 2017, the applicable LIBOR was 1.12% and the applicable margin wa s 1.50%, the sum of which was 2.62%, which was applied to $39.0 million of the Real Estate Loan. The rate of the remaining balance of $127.8 million of the Real Estate Loan is hedged with an interest rate swap fixing the rate at 6.93% based on current marg in. 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 principal or interest and other s tandard 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 mortgage s. These senior mortgage loan balances as of June 30, 2017 were in the aggregate amount of $1,366.2 million and mature between 2022 and 2038. The senior mortgages require monthly principal and interest payments. 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 repai d by the anticipated repayment date, the interest rate on these mortgages would increase from the current fixed rate. We are using the anticipated repayment date for our maturity schedule. Amerco Real Estate Company and U-Haul International, Inc. have prov ided 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 t he 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 June 30, 2017, 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 loans, 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 int erest and other standard reporting and change-in-control covenants. Various subsidiaries of Amerco Real Estate Company 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 June 30, 2017, the outstanding balance was $85.0 million. This loan is secured by certain properties owned by the borrowers. This loan agreement provides for term loans, subject to the terms of the loan agreement. The final matur ity of the loan is November 2018. This loan requires monthly interest payments with the unpaid loan balance and accrued and unpaid interest due at maturity. The interest rate, per the provision of the loan agreement, is the applicable LIBOR plus the applic able margin. At June 30, 2017, the applicable LIBOR was 1.01% and the margin was 1.50%, the sum of which was 2.51%. AMERCO is the guarantor of this loan. The default provisions of the loan include non-payment of principal or interest and other standard rep orting 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 aggregate balance of the loans as of June 30, 2017 was $341.3 millio n with the final maturities between July 2017 and June 2024. 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. T he interest rates, per the provision of the Loan Agreements, are the applicable LIBOR plus the applicable margins. At June 30, 2017, the applicable LIBOR was between 1.05% and 1.16% and applicable margins were between 1.72% and 2.50%. The interest rates ar e hedged with interest rate swaps fixing the rates between 2.82% and 4.76% based on current margins. Additionally, $276.0 million of these loans are carried at fixed rates ranging between 1.95% and 3.94%. AMERCO and, in some cases, U-Haul International, In c. 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. 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 f inance 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 June 30, 2017, the outstanding balance was $50.1 milli on. The note is secured by the box trucks purchased and the corresponding operating cash flows associated with their operation. The 2010 Box Truck Note is subject to certain covenants with respect to liens, additional indebtedness of the special purpose e ntity, the disposition of assets and other customary covenants of bankruptcy-remote special purpose entities. The default provisions of this note include non-payment of principal or interest and other standard reporting and change-in-control covenants. Ren tal Truck Revolvers Various subsidiaries of U-Haul International, Inc. entered into a revolving fleet loan 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 t he Loan Agreement, is the applicable LIBOR plus the applicable margin. At June 30, 2017, the applicable LIBOR was 1.04% and the margin was 1.15%, the sum of which was 2.19%. Only interest is paid on the loan until the last nine months when principal is due monthly. As of June 30, 2017, the outstanding balance was $150.0 million. Various subsidiaries of U-Haul International, Inc. entered into a revolving fleet loan for $150 million, which can be increased to a maximum of $190 million. This loan matures in Ma rch 2020. The interest rate, per the provision of the Loan Agreement, is the applicable LIBOR plus the applicable margin. At June 30, 2017, the applicable LIBOR was 1.05% and the margin was 1.15%, the sum of which was 2.20%. Only interest is paid on the lo an until the last nine months when principal is due monthly. As of June 30, 2017, the outstanding balance was $150.0 million. Various subsidiaries of U-Haul International, Inc. entered into a revolving fleet loan for $150 million. The loan matures in Novem ber 2021. The interest rate, per the provision of the Loan Agreement is the applicable LIBOR plus the applicable margin. At June 30, 2017, the applicable LIBOR was 1.05% and the margin was 1.15%, the sum of which was 2.20%. Only interest is paid on the loa n until the last nine months when principal is due monthly. As of June 30, 2017, the outstanding balance was $123.0 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 quarter of fiscal 2018, we entered into $87.4 million of new capital leases. At June 30, 2017 and March 31, 2017, the balance of our capital leases was $909.4 million and $876.8 million, respectively. The net book value of the correspondin g capitalized assets was $1,259.1 million and $1,233.3 million at June 30, 2017 and March 31, 2017, respectively. Other Obligations In February 2011, AMERCO and U.S. Bank, NA (the “Trustee”) entered into the U-Haul Investors Club® Indenture. AMERCO and th e Trustee entered into this indenture to provide for the issuance of notes by us directly to investors over our proprietary website, uhaulinvestorsclub.com (“U-Notes®”). The U-Notes® are secured by various types of collateral including, but not limited to, 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 June 30, 2017, the aggregate outstanding principal balance of the U-Notes® issued was $74.4 million of which $4.2 million is held by our insurance subsidiaries and eliminated in consolidation. Interest rates range between 2.75% and 8.00% and maturity dates range between 2017 and 2047. Oxford is a member of the Federal Home Loan Bank (“FHLB”) and, as such, the FHLB has made deposits with Oxford. As of March 31, 2017, one deposit balance was $45.0 million, for which O xford pays a fixed interest rate of 1.00%, due on the maturity date of September 29, 2017. As of March 31, 2017, the other deposit amount was $15.0 million with a maturity of March 30, 2020 at an interest rate of 1.75%. As of March 31, 2017, available-for-sale investments held with the FHLB totaled $129.0 million, of which $68.6 million was pledged as collateral to secure the outstanding deposits. The balances of these deposits are included within Liabilities from investment contracts on the consolidated ba lance sheet. Annual Maturities of Notes, Loans and Leases Payable The annual maturities of long term debt, including capital leases, as of June 30, 2017 for the next five years and thereafter are as follows:
|  | Year Ended June 30,
|  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | Thereafter
|  | (Unaudited)
|  | (In thousands)
Notes, loans and leases payable, secured | $ | 539,396 | $ | 536,031 | $ | 470,174 | $ | 294,609 | $ | 259,118 | $ | 1,312,699
Interest on Borrowings Interest Expense Components of interest expense include the following:
|  | Quarter Ended June 30,
|  | 2017 |  | 2016
|  | (Unaudited)
|  | (In thousands)
Interest expense | $ | 29,629 | $ | 24,085
Capitalized interest |  | (1,765) |  | (1,313)
Amortization of transaction costs |  | 932 |  | 843
Interest expense resulting from derivatives |  | 1,549 |  | 2,811
Total interest expense | $ | 30,345 | $ | 26,426
Interest paid in cash, including payments related to derivative contracts, amounted to $31.0 million and $27.2 million for the first quarter of fiscal 2018 and 2017, respectively. Interest Rates Interest rates and Company borrowings were as follows:
|  | Revolving Credit Activity
|  | Quarter Ended June 30,
|  | 2017 |  | 2016
|  | (Unaudited)
|  | (In thousands, except interest rates)
Weighted average interest rate during the quarter |  | 2.24% |  | 1.73%
Interest rate at quarter end |  | 2.25% |  | 1.72%
Maximum amount outstanding during the quarter | $ | 508,000 | $ | 410,000
Average amount outstanding during the quarter | $ | 499,659 | $ | 369,637
Facility fees | $ | 76 | $ | 41

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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 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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