Long Term Debt

				September 30,		March 31,
	2019 Rate (a)	Maturities		2018		2018
				(Unaudited)
				(In thousands)
Real estate loan (amortizing term)	3.63%	2023	$	107,913	$	135,287
Senior mortgages	3.72% - 6.62%	2021 - 2038		1,510,404		1,487,645
Working capital loans (revolving credit)	3.45% - 3.46%	2020 - 2021		185,000		55,000
Fleet loans (amortizing term)	1.95% - 4.66%	2018 - 2025		286,987		342,971
Fleet loans (revolving credit)	3.23% - 3.26%	2021 - 2022		520,000		460,000
Capital leases (rental equipment)	1.92% - 5.04%	2018 - 2025		1,026,092		984,217
Other obligations	2.75% - 8.00%	2018 - 2047		75,200		73,579
Notes, loans and leases payable				3,711,596		3,538,699
Less: Debt issuance costs				(25,024)		(25,623)
Total notes, loans and leases payable, net			$	3,686,572	$	3,513,076

(a) Interest rate as of September 30, 2018, including the effect of applicable hedging instruments.

Real Estate Backed Loans

Real Estate Loan

Real Estate and certain of its subsidiaries and U-Haul Company of Florida are borrowers under a real estate loan (the “Real Estate Loan”). As of September 30, 2018, the outstanding balance on the Real Estate Loan was $107.9 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. As of September 30, 2018, the applicable LIBOR was 2.13% and the applicable margin was 1.50%, the sum of which was 3.63%. The default provisions of the Real Estate Loan 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.

Senior Mortgages

Various subsidiaries of Real Estate and U-Haul are borrowers under certain senior mortgages. These senior mortgage loan balances as of September 30, 2018 were in the aggregate amount of $1,510.4 million and mature between 2021 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 6.62%. 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 increase from the current fixed rate. We are using the anticipated repayment date for our maturity schedule. Real Estate and U-Haul 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

Various subsidiaries of Real Estate and U-Haul are borrowers under an asset backed working capital loan. This loan was amended in June 2018, to extend the maturity date and reduce the applicable margin. The maximum amount that can be drawn at any one time is $85.0 million. As of September 30, 2018, 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 maturity of the loan is June 2021. 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 applicable margin. As of September 30, 2018, the applicable LIBOR was 2.08% and the margin was 1.38%, the sum of which was 3.46%. 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.

AMERCO is a borrower under a working capital loan. The current maximum credit commitment is $150.0 million, which can be increased to $300.0 million by bringing in other lenders. As of September 30, 2018, the outstanding balance was $100.0 million. This loan agreement provides for revolving loans, subject to the terms of the loan agreement. The final maturity of this loan is September 2020. This loan requires monthly interest payments with the unpaid loan balance and accrued and unpaid interest due at maturity. As of September 30, 2018, the applicable LIBOR was 2.07% and the margin was 1.38%, the sum of which was 3.45%. The default provisions of the loan include non-payment of principal or interest and other standard reporting and change-in-control covenants. There is a 0.30% fee charged for unused capacity.

Fleet Loans

Rental Truck Amortizing Loans

U-Haul and several of its subsidiaries are borrowers under amortizing term loans. The aggregate balance of the loans as of September 30, 2018 was $287.0 million with the final maturities between December 2018 and June 2025.

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. The interest rates, per the provision of the loan agreements, are the applicable LIBOR plus the applicable margins. As of September 30, 2018, the applicable LIBOR was between 2.11% and 2.16% and applicable margins were between 1.72% and 1.75%. The interest rates are hedged with interest rate swaps fixing the rates between 2.82% and 3.00% based on current margins. Additionally, $263.4 million of these loans are carried at fixed rates ranging between 1.95% and 4.66%.

AMERCO and, in some cases, U-Haul 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 Revolvers

Various subsidiaries of U-Haul entered into three revolving fleet loans in aggregate for $530.0 million. These loans mature between January 2021 and July 2022. The interest rates, per the provision of the loan agreements, are the applicable LIBOR plus the applicable margin. As of September 30, 2018, the applicable LIBOR was between 2.08% and 2.11%, and the margin was 1.15%, the sum of which was between 3.23% and 3.26%. Only interest is paid on the loans until the last nine months of the respective loan terms when principal becomes due monthly. As of September 30, 2018, the aggregate outstanding balance of the loans was $520.0 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 six months of fiscal 2019, we entered into $187.1 million of new capital leases. As of September 30, 2018 and March 31, 2018, the balance of our capital leases was $1,026.1 million and $984.2 million, respectively. The net book value of the corresponding capitalized assets was $1,499.4 million and $1,407.6 million as of September 30, 2018 and March 31, 2018, respectively.

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 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.

As of September 30, 2018, the aggregate outstanding principal balance of the U-Notes® issued was $78.6 million, of which $3.4 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 2018 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 June 30, 2018, the deposits had an aggregate balance of $60.0 million, for which Oxford pays fixed interest rates between 1.48% and 2.67% with maturities between September 29, 2018 and March 29, 2021. As of June 30, 2018, available-for-sale investments held with the FHLB totaled $123.4 million, of which $70.0 million were pledged as collateral to secure the outstanding deposits. The balances of these deposits are included within Liabilities from investment contracts on the condensed consolidated balance sheets.

Annual Maturities of Notes, Loans and Leases Payable, Net

The annual maturities of long term debt, including capital leases, as of September 30, 2018 for the next five years and thereafter are as follows:

		Twelve Months Ending September 30,
		2019		2020		2021		2022		2023		Thereafter
		(Unaudited)
		(In thousands)
Notes, loans and leases payable, secured	$	458,613	$	595,502	$	552,231	$	539,667	$	211,857	$	1,353,726

Interest on Borrowings

Interest Expense

Components of interest expense include the following:

		Quarter Ended September 30,
		2018		2017
		(Unaudited)
		(In thousands)
Interest expense	$	36,220	$	31,863
Capitalized interest		(2,227)		(1,929)
Amortization of transaction costs		881		1,014
Interest expense resulting from derivatives		156		1,075
Total interest expense		35,030		32,023

		Six Months Ended September 30,
		2018		2017
		(Unaudited)
		(In thousands)
Interest expense	$	70,416	$	61,492
Capitalized interest		(2,646)		(3,694)
Amortization of transaction costs		1,842		1,946
Interest expense resulting from derivatives		672		2,624
Total interest expense		70,284		62,368

Interest paid in cash, including payments related to derivative contracts, amounted to $36.6 million and $32.4 million for the second quarter of fiscal 2019 and 2018, respectively and $71.1 million and $63.4 million for the first six months of fiscal 2019 and 2018, respectively.

Interest Rates

Interest rates and Company borrowings were as follows:

		Revolving Credit Activity
		Quarter Ended September 30,
		2018		2017
		(Unaudited)
		(In thousands, except interest rates)
Weighted average interest rate during the quarter		3.06%		2.43%
Interest rate at the end of the quarter		2.81%		2.43%
Maximum amount outstanding during the quarter	$	705,000	$	538,000
Average amount outstanding during the quarter	$	585,924	$	516,946
Facility fees	$	128	$	49

		Revolving Credit Activity
		Six Months Ended September 30,
		2018		2017
		(Unaudited)
		(In thousands, except interest rates)
Weighted average interest rate during the period		3.08%		2.34%
Interest rate at the end of the period		2.81%		2.43%
Maximum amount outstanding during the period	$	705,000	$	538,000
Average amount outstanding during the period	$	542,186	$	508,350
Facility fees	$	272	$	125