XML 28 R16.htm IDEA: XBRL DOCUMENT
v3.20.2

Leases | 3 Months Ended
--- | ---
Jun. 30, 2020
Leases [Abstract] |
8. Leases | Lessor We have determined that revenues derived by providing self-moving equipment rentals, self-storage rentals and certain other revenues, including U-Box rentals, are within the scope of the accounting guidance contained in Topic 842. Our self-moving equipment rental related revenues have been accounted for under the revenue accounting standard Topic 606, until the adoption of Topic 842. For the periods after April 1, 2019, we combined all lease and non-lease components of lease contracts for which the timing and pattern of transfer are the same and the lease component meets the classification of an operating lease, and account for them in accordance with Topic 842. The revenue streams accounted for in accordance with Topic 842 are recognized evenly over the period of rental. Please see Note 15, Revenue Recognition, to the Notes to Condensed Consolidated Financial Statements. 14 amerco and consolidated subsidiaries notes to condensed consolidated financial statements - (continued) Lessee We determine if an arrangement is a lease at inception. Operating leases, which are comprised primarily of storage rental locations, are included in ROU assets - operating and operating lease liability in our condensed consolidated balance sheet dated June 30, 2020 and March 31, 2020. Finance leases, which are comprised primarily of rental equipment leases, are included in ROU assets - financing, net, and notes, loans and finance/capital leases payable, net in our balance sheet dated June 30, 2020 and March 31, 2020. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the expected remaining lease term. We use our incremental borrowing rate based on information available at commencement date including the rate for a fully collateralized loan that can either be fully amortizing or financed with a residual at the end of the lease term, for a borrower with similar credit quality in order to determine the present value of lease payments. Our lease terms may include options to extend or terminate the lease, which are included in the calculation of ROU assets when it is reasonably certain that we will exercise those options. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally not accounted for separately. Additionally, for certain leases, we apply a portfolio approach to account for the operating lease ROU assets and liabilities as the leases are similar in nature and have nearly identical contract provisions. The standard also changed the manner by which we account for our equipment sale/leaseback transactions. Based on our assessment, the lease transactions are classified as financing leases, and therefore the transactions do not qualify as a sale. Pursuant to the guidance, new sale leaseback transactions that fail to qualify as a sale will be accounted for as a financial liability. Please see Note 4, Borrowings, of the Notes to Condendsed Consolidated Finanical Statements for additional information. The following table shows the components of our ROU assets, net: As of June 30, 2020 (Unaudited) (In thousands) Finance Operating Total Buildings and improvements $ - $ 130,241 $ 130,241 Furniture and equipment 21,111 - 21,111 Rental trailers and other rental equipment 115,967 - 115,967 Rental trucks 1,697,339 - 1,697,339 Right-of-use assets, gross 1,834,417 130,241 1,964,658 Less: Accumulated depreciation (807,489) (23,559) (831,048) Right-of-use assets, net $ 1,026,928 $ 106,682 $ 1,133,610 Finance Operating Weighted average remaining lease term (years) 4 14 Weighted average discount rate 3.5 % 4.6 % For the quarter ended June 30, 2020, cash paid for leases included in our operating and financing cash flow activities were $ 7.0 million and $ 68.6 million, respectively. 15 amerco and consolidated subsidiaries notes to condensed consolidated financial statements - (continued) The components of lease costs were as follows: Three Months Ended June 30, 2020 (Unaudited) (In thousands) Operating lease costs $ 7,137 Finance lease cost: Amortization of right-of-use assets $ 40,836 Interest on lease liabilities 6,282 Total finance lease cost $ 47,118 Maturities of lease liabilities were as follows: Finance leases Operating leases (Unaudited) Year ending June 30, (In thousands) 2021 $ 194,978 $ 24,802 2022 154,457 22,598 2023 122,986 21,780 2024 92,915 20,791 2025 65,825 6,213 Thereafter 35,155 65,758 Total lease payments 666,316 161,942 Less: imputed interest - (55,328) Present value of lease liabilities $ 666,316 $ 106,614 9. Contingencies COVID-19 In late 2019, COVID-19 was first detected in Wuhan, China. In March 2020, the World Health Organization declared COVID-19 a global pandemic, and governmental authorities around the world have implemented measures to reduce the spread of COVID-19. These measures along with the threat the virus poses have adversely affected workforces, customers, consumer sentiment, economies and financial markets. During the first quarter of fiscal 2021, the Company has been impacted by the spread of COVID-19. The extent to which COVID-19 impacts the Company's business, operations and financial results will continue to evolve in ways that the Company is not fully able to predict at this time. We have experienced customer initiated changes in behavior, actions by government entities, concerns from our workforce, and reactions from the capital markets. Although the Company cannot estimate the length or gravity of the impact of COVID-19 at this time, if the pandemic continues, it may have a material adverse effect on the Company's results of future operations, financial position and liquidity in fiscal 2021. 16

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
Name: | us-gaap_LeasesOfLesseeDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration