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Employee Benefit Plans | 12 Months Ended
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Mar. 31, 2024
Compensation and Retirement Disclosure [Abstract] |
Employee Benefit Plans | Note 16. Employee Benefit Plans Profit Sharing Plans We provide tax-qualified profit sharing retirement plans for the benefit of eligible employees, former employees and retirees in the United States and Canada. The plans are designed to provide employees with an accumulation of funds for retirement on a tax-deferred basis and provide for annual discretionary employer contributions. Amounts to be contributed are determined by the President and Chairman of the Board of Directors (the “Board”) of the Company under the delegation of authority from the Board, pursuant to the terms of the Profit Sharing Plan. No contributions were made to the profit sharing plan during fiscal 2024, 2023 or 2022. We also provide an employee savings plan which allows participants to defer income under Section 401(k) of the Internal Revenue Code of 1986. ESOP Plan We sponsor an Employee Stock Ownership Plan (“ESOP”) that generally covers all employees with one year or more of service. The ESOP began as a leveraged plan where shares were pledged as collateral for its debt which was originally funded by U-Haul. We made annual contributions to the ESOP equal to the ESOP’s debt service. As the debt was repaid, shares were released from collateral and allocated to active employees, based on the proportion of debt service paid in the year. ESOP shares were committed to be released monthly and ESOP compensation expense was recorded based on the current market price at the end of the month. These shares then become outstanding for the earnings per share computations. In fiscal 2021 we de-levered the plan and now contributions are made at the discretion of management with expense being recognized upon the decision to contribute. ESOP compensation expense was $23.9 million, $22.1 million and $23.0 million for fiscal 2024, 2023 and 2022, respectively, which are included in operating expenses in the consolidated statements of operations. In fiscal 2024, 2023 and 2022, the Company made non-leveraged contributions of $23.9 million, $22.1 million and $23.0 million, respectively to the Plan Trust. During fiscal 2024 and 2023, ESOP purchased for allocation 365,544 and 424,484, respectively of non-leveraged Non-Voting Common Stock shares and during fiscal 2022, ESOP purchased for allocation 33,954 of non-leveraged Voting Common Stock shares. Shares held by the ESOP were as follows:
|  | Years Ended March 31, |
|  | 2024 |  |  | 2023 |
|  | (In thousands) |
Allocated shares - Voting Common Stock |  |  | 777 |  |  |  | 836 |
Allocated shares - Non-Voting Common Stock |  |  | 7,778 |  |  |  | 7,821 |
Post Retirement and Post Employment Benefits We provide a health reimbursement benefit to our eligible U.S. employees and their eligible dependents upon retirement from the Company. The retiree must have attained age sixty-five and earned twenty years of full-time service upon retirement to be awarded the health reimbursement benefit. The health reimbursement benefit is capped at a $20,000 lifetime maximum per covered person. Reimbursements are for amounts requested that are paid out of pocket after Medicare and any other medical policies in force. In addition, retirees who have attained age sixty-five and earned at least twenty years of full-time service upon retirement from the Company are entitled to group term life insurance benefits. The life insurance benefit is $3,000 plus $100 for each year of employment over twenty years. The benefits are not funded, and claims are paid as they are incurred. We use a March 31 measurement date for our post retirement benefit disclosures. The components of net periodic post retirement benefit cost were as follows:
|  | Years Ended March 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
|  | (In thousands) |
Service cost for benefits earned during the period | $ |  | 1,188 |  | $ |  | 1,326 |  | $ |  | 1,401 |
Other components of net periodic benefit costs: |  |  |  |  |  |  |  |  |
Interest cost on accumulated postretirement benefit |  |  | 1,469 |  |  |  | 1,148 |  |  |  | 908 |
Other components |  |  | (11 | ) |  |  | 68 |  |  |  | 212 |
Total other components of net periodic benefit costs |  |  | 1,458 |  |  |  | 1,216 |  |  |  | 1,120 |
Net periodic postretirement benefit cost | $ |  | 2,646 |  | $ |  | 2,542 |  | $ |  | 2,521 |
The fiscal 2024 and fiscal 2023 post retirement benefit liability included the following components:
|  | Years Ended March 31, |
|  | 2024 |  |  | 2023 |
|  | (In thousands) |
Beginning of year | $ |  | 28,770 |  | $ |  | 30,206 |
Service cost for benefits earned during the period |  |  | 1,188 |  |  |  | 1,326 |
Interest cost on accumulated post retirement benefit |  |  | 1,469 |  |  |  | 1,148 |
Net benefit payments and expense |  |  | (1,240 | ) |  |  | (1,207 | )
Actuarial gain |  |  | (1,861 | ) |  |  | (2,703 | )
Accumulated postretirement benefit obligation |  |  | 28,326 |  |  |  | 28,770 |
Current liabilities |  |  | 1,741 |  |  |  | 1,625 |
Non-current liabilities |  |  | 26,585 |  |  |  | 27,145 |
Total post retirement benefit liability recognized in statement of financial position |  |  | 28,326 |  |  |  | 28,770 |
Components included in accumulated other comprehensive income (loss): |  |  |  |  |  |
Unrecognized net loss |  |  | 1,385 |  |  |  | (465 | )
Cumulative net periodic benefit cost (in excess of employer contribution) | $ |  | 29,711 |  | $ |  | 28,305 |
The discount rate assumptions in computing the information above were as follows:
|  | Years Ended March 31,
|  | 2024 | 2023 | 2022
|  | (In percentages) |  |
Accumulated postretirement benefit obligation |  |  | 5.34 |  | % |  | 5.08 |  | % |  | 3.76 |  | %
In December 2003, the Medicare Prescription Drug Improvement and Modernization Act of 2003 became law. Net periodic post retirement benefit cost above includes the effect of the subsidy. The discount rate represents the expected yield on a portfolio of high grade (AA to AAA rated or equivalent) fixed income investments with cash flow streams sufficient to satisfy benefit obligations under the plan when due. Fluctuations in the discount rate assumptions primarily reflect changes in U.S. interest rates. The assumed health care cost trend rate used to measure the accumulated postretirement benefit obligation as of the end of fiscal 2024 was 5.9% in the initial year and was projected to decline annually to an ultimate rate of 4.0% in fiscal 2047. The assumed health care cost trend rate used to measure the accumulated post retirement benefit obligation as of the end of fiscal 2023 (and used to measure the fiscal 2024 net periodic benefit cost) was 4.9% in the initial year and was projected to decline annually to an ultimate rate of 4.0% in fiscal 2046. Post-employment benefits provided by us, other than upon retirement, are not material. Future net benefit payments are expected as follows:
|  | Future Net Benefit Payments |
|  | (In thousands) |
Year-ended: |  |  |
2025 | $ |  | 1,741 |
2026 |  |  | 1,977 |
2027 |  |  | 2,238 |
2028 |  |  | 2,467 |
2029 |  |  | 2,706 |
2030 Through 2034 |  |  | 14,121 |
Total | $ |  | 25,250 |

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 710 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//710/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 712 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//712/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 715 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//715/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//718/tableOfContent + Details
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