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Related Party Transactions | 6 Months Ended
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Sep. 30, 2017
Related Party Transactions [Abstract] |
10. Related Party Transactions | As set forth in the Company’s Audit Committee Charter and consistent with NASDAQ Listing Rules, our Audit Committee (the “Audit Committee”) reviews and maintains oversight over related party transactions which are required to be d isclosed under the Securities and Exchange Commission (“SEC”) rules and regulations and in accordance with generally accepted accounting principles (“GAAP”). Accordingly, all such related party transactions are submitted to the Audit Committee for ongoing review and oversight. Our internal processes are designed to ensure that our legal and finance departments identify and monitor potential related party transactions that may require disclosure and Audit Committee oversight. AMERCO has engaged in related pa rty transactions and has continuing related party interests with certain major stockholders, directors and officers of the consolidated group as disclosed below. Management believes that the transactions described below and in the related notes were comple ted on terms substantially equivalent to those that would prevail in arm’s-length transactions. SAC Holding Corporation and SAC Holding II Corporation (collectively “SAC Holdings”) were established in order to acquire and develop self-storage properties. T hese properties are being managed by us pursuant to management agreements. In the past, we sold real estate and various self-storage properties to SAC Holdings, and such sales provided significant cash flows to us. SAC Holdings, Four SAC Self-Storage Corpo ration (“4 SAC”), Five SAC Self-Storage Corporation (“5 SAC”), Galaxy Investments, L.P. (“Galaxy”) and Private Mini Storage Realty, L.P. (“Private Mini”) are substantially controlled by Blackwater Investments, Inc. (“Blackwater”). Blackwater is wholly-owne d by Willow Grove Holdings LP, which is owned by Mark V. Shoen (a significant shareholder), and various trusts associated with Edward J. Shoen (our Chairman of the Board, President and a significant shareholder) and Mark V. Shoen. Related Party Revenue
|  | Quarter Ended September 30,
|  | 2017 |  | 2016
|  | (Unaudited)
|  | (In thousands)
U-Haul interest income revenue from SAC Holding Corporation | $ | 1,213 | $ | 1,232
U-Haul management fee revenue from Blackwater |  | 6,231 |  | 6,120
U-Haul management fee revenue from Mercury |  | 600 |  | 592
| $ | 8,044 | $ | 7,944
|  | Six Months Ended September 30,
|  | 2017 |  | 2016
|  | (Unaudited)
|  | (In thousands)
U-Haul interest income revenue from SAC Holding Corporation | $ | 2,418 | $ | 2,455
U-Haul management fee revenue from Blackwater |  | 12,393 |  | 12,140
U-Haul management fee revenue from Mercury |  | 1,200 |  | 1,176
| $ | 16,011 | $ | 15,771
During the first six months of fiscal 2018, a subsidiary of ours held a junior unsecured note from SAC Holding Corporation. We do not have an equity ownership interest in SAC Holding Corporation. We received cash interest payments of $2.2 million and $2.3 million from SAC Holding Corporation during the first six months of fiscal 2018 and 2017, respectively. The largest aggregate amount of notes receivable outstanding during the first six months of fiscal 2018 was $48.1 million and the aggregate notes receiv able balance at September 30, 2017 was $47.5 million. In accordance with the terms of this note, SAC Holding Corporation may prepay the note without penalty or premium at any time. We are currently negotiating to extend this note. The scheduled maturity of this note is 2017. We currently manage the self-storage properties owned or leased by Blackwater and Mercury Partners, L.P. (“Mercury”) pursuant to a standard form of management agreement, under which we receive a management fee of between 4% and 10% of the gross receipts plus reimbursement for certain expenses. We received cash payments for management fees, exclusive of reimbursed expenses, of $17.0 million and $15.5 million from the above mentioned entities during the first six months of fiscal 2018 and 2017, respectively. This management fee is consistent with the fee received for other properties we previously managed for third parties. Mark V. Shoen controls the general partner of Mercury. The limited partner interests of Mercury are indirectly owned by Mark V. Shoen, James P. Shoen, (a significant shareholder) and a trust benefitting the children and grandchild of Edward J. Shoen. Related Party Costs and Expenses
|  | Quarter Ended September 30,
|  | 2017 |  | 2016
|  | (Unaudited)
|  | (In thousands)
U-Haul lease expenses to Blackwater | $ | 675 | $ | 684
U-Haul commission expenses to Blackwater |  | 17,556 |  | 17,128
| $ | 18,231 | $ | 17,812
|  | Six Months Ended September 30,
|  | 2017 |  | 2016
|  | (Unaudited)
|  | (In thousands)
U-Haul lease expenses to Blackwater | $ | 1,356 | $ | 1,372
U-Haul commission expenses to Blackwater |  | 33,442 |  | 32,881
| $ | 34,798 | $ | 34,253
We lease space for marketing company offices, vehicle repair shops and hitch installation centers from subsidiaries of Blackwater. The terms of the leases are similar to the terms of leases for other properties owned by unrelated parties that are leased to us. At September 30, 2017, subsidiaries of Blackwater acted as U-Haul independent dealers. The financial and other terms of the dealership contracts with the aforementioned companies and their subsidiaries are substantially identical to the terms of those with our other independent dealers whereby commissions are paid by us based upon equipment rental revenues. These agreements and note with subsidiaries of Blackwater, excl uding Dealer Agreements, provided revenues of $14.8 million, expenses of $1.4 million and cash flows of $13.7 million during the first six months of fiscal 2018. Revenues and commission expenses related to the Dealer Agreements were $155.2 million and $33.4 million, respectively during the first six months of fiscal 2018. Pursuant to the variable interest entity (“VIE”) model under Accounting Standards Codification (“ASC”) 810 – Consolidation (“ASC 810”), management determined that the junior note of SAC Ho lding Corporation as well as the management agreements with subsidiaries of Blackwater represents potential variable interests for us. Management evaluated whether it should be identified as the primary beneficiary of one or more of these VIEs using a two-step approach in which management (i) identified all other parties that hold interests in the VIEs, and (ii) determined if any variable interest holder has the power to direct the activities of the VIEs that most significantly impact their economic perform ance. Management determined that we do not have a variable interest in the holding entities of Blackwater, except for SAC Holding Corporation based upon management agreements which are with the individual operating entities or through the issuance of juni or debt; therefore, we are precluded from consolidating these entities. We have junior debt with the holding entity SAC Holding Corporation which represents a variable interest in the entity. Though we have certain protective rights within this debt agreement, we have no present influence or control over this holding entity unless the protective rights become exercisable, which management considers unlikely based on their payment history. As a result, we have no basis under ASC 810 to consolidate this entity. We do not have the power to direct the activities that most significantly impact the economic performance of the individual operating entities which have management agreements with U-Haul. There are no fees or penalties disclosed in the managemen t agreement for termination of the agreement. Through control of the holding entities' assets, and its ability and history of making key decisions relating to the entity and its assets, Blackwater, and its owner, are the variable interest holder with the p ower to direct the activities that most significantly impact each of the individual holding entities and the individual operating entities’ performance. As a result, we have no basis under ASC 810 to consolidate these entities. We have not provided financ ial or other support explicitly or implicitly during the quarter ended September 30, 2017 to any of these entities that we were not previously contractually required to provide. In addition, we currently have no plan to provide any financial support to any of these entities in the future. The carrying amount and classification of the assets and liabilities in our balance sheets that relate to our variable interests in the aforementioned entities are as follows, which approximate the maximum exposure to loss as a result of our involvement with these entities: Related Party Assets
|  | September 30, |  | March 31,
|  | 2017 |  | 2017
|  | (Unaudited) |  |
|  | (In thousands)
U-Haul notes receivable from SAC Holding Corporation |  | 47,460 |  | 48,098
U-Haul interest receivable from SAC Holding Corporation |  | 5,614 |  | 5,397
U-Haul receivable from Blackwater |  | 22,357 |  | 23,202
U-Haul receivable from Mercury |  | 4,938 |  | 9,195
Other (a) |  | 554 |  | 276
| $ | 80,923 | $ | 86,168
(a) Timing differences for intercompany balances with insurance subsidiaries resulting from the three month difference in reporting periods.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 + Details
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