UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

[x]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended September 30, 2019

or

[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from __________________ to __________________

Commission File Number	Registrant, State of Incorporation, Address and Telephone Number	I.R.S. Employer Identification No.
001-11255	AMERCO	88-0106815
	(A Nevada Corporation)
	5555 Kietzke Lane Suite 100
	Reno NV 89511
	Telephone 775 688-6300
	N/A
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.25 par value	UHAL	NASDAQ Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x]  No [ ]

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes [x] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 

Large Accelerated Filer[x]   Accelerated filer [ ]  

Non-accelerated filer [ ]  Smaller reporting company [ ]

Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [x]

19,607,788 shares of AMERCO Common Stock, $0.25 par value, were outstanding at November 1, 2019.

TABLE OF CONTENTS

		Page
	PART I FINANCIAL INFORMATION
Item 1.	Financial Statements
	a) Condensed Consolidated Balance Sheets as of September 30, 2019 (unaudited) and March 31, 2019	1
	b) Condensed Consolidated Statements of Operations for the Quarters Ended September 30, 2019 and 2018 (unaudited)	2
	c) Condensed Consolidated Statements of Operations for the Six Months Ended September 30, 2019 and 2018 (unaudited)	3
	d) Condensed Consolidated Statements of Comprehensive Income (Loss) for the Quarters and Six Months Ended September 30, 2019 and 2018 (unaudited)	4
	e) Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Quarter Ended September 30, 2019 and 2018 (unaudited)	5
	f) Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Six Months Ended September 30, 2019 and 2018 (unaudited)	6
	g) Condensed Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2019 and 2018 (unaudited)	7
	h) Notes to Condensed Consolidated Financial Statements (unaudited)	8
Item 2 .	Management’s Discussion and Analysis of Financial Condition and Results of Operations	44
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	61
Item 4.	Controls and Procedures	63
	PART II OTHER INFORMATION
Item 1.	Legal Proceedings	64
Item 1A.	Risk Factors	64
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	64
Item 3.	Defaults Upon Senior Securities	64
Item 4.	Mine Safety Disclosures	64
Item 5.	Other Information	64
Item 6.	Exhibits	64

Part i Financial information

Item 1. Financial Statements

AMERCO AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED balance sheets

		September 30,		March 31,
		2019		2019
		(Unaudited)
		(In thousands, except share data)
ASSETS
Cash and cash equivalents	$	525,231	$	673,701
Reinsurance recoverables and trade receivables, net		222,481		224,785
Inventories and parts, net		102,357		103,504
Prepaid expenses		194,250		174,100
Investments, fixed maturities and marketable equities		2,413,350		2,235,397
Investments, other		320,992		300,736
Deferred policy acquisition costs, net		111,708		136,276
Other assets		72,432		78,354
Right of use assets - financing, net		1,185,629		0
Right of use assets - operating		105,298		–
Related party assets		12,902		30,889
		5,266,630		3,957,742
Property, plant and equipment, at cost:
Land		1,016,918		976,454
Buildings and improvements		4,371,637		4,003,726
Furniture and equipment		716,287		689,780
Rental trailers and other rental equipment		495,264		590,039
Rental trucks		3,560,034		4,762,028
		10,160,140		11,022,027
Less: Accumulated depreciation		(2,570,568)		(3,088,056)
Total property, plant and equipment, net		7,589,572		7,933,971
Total assets	$	12,856,202	$	11,891,713
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued expenses	$	546,260	$	556,873
Notes, loans and finance/capital leases payable, net		4,497,912		4,163,323
Operating lease liability		104,832		0
Policy benefits and losses, claims and loss expenses payable		1,022,134		1,011,183
Liabilities from investment contracts		1,720,995		1,666,742
Other policyholders' funds and liabilities		10,911		15,047
Deferred income		35,926		35,186
Deferred income taxes, net		859,164		750,970
Total liabilities		8,798,134		8,199,324
Commitments and contingencies (notes 4, 8, 9 and 10)
Stockholders' equity:
Series preferred stock, with or without par value, 50,000,000 shares authorized:
Series A preferred stock, with no par value, 6,100,000 shares authorized;
6,100,000 shares issued and none outstanding as of September 30 and March 31, 2019
Series B preferred stock, with no par value, 100,000 shares authorized; none
issued and outstanding as of September 30 and March 31, 2019
Serial common stock, with or without par value, 250,000,000 shares authorized:
Serial common stock of $0.25 par value, 10,000,000 shares authorized;
none issued and outstanding as of September 30 and March 31, 2019
Common stock, with $0.25 par value, 250,000,000 shares authorized:
Common stock of $0.25 par value, 250,000,000 shares authorized; 41,985,700
issued and 19,607,788 outstanding as of September 30 and March 31, 2019		10,497		10,497
Additional paid-in capital		453,761		453,326
Accumulated other comprehensive income (loss)		17,151		(66,698)
Retained earnings		4,255,906		3,976,962
Cost of common stock in treasury, net (22,377,912 shares as of September 30 and March 31, 2019)		(525,653)		(525,653)
Cost of preferred stock in treasury, net (6,100,000 shares as of September 30 and March 31, 2019)		(151,997)		(151,997)
Unearned employee stock ownership plan shares		(1,597)		(4,048)
Total stockholders' equity		4,058,068		3,692,389
Total liabilities and stockholders' equity	$	12,856,202	$	11,891,713

The accompanying notes are an integral part of these condensed consolidated financial statements.

1

AMERCO AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED Statements of operations

		Quarter Ended September 30,
		2019		2018
		(Unaudited)
		(In thousands, except share and per share amounts)
Revenues:
Self-moving equipment rentals	$	804,325	$	781,713
Self-storage revenues		104,965		91,493
Self-moving and self-storage products and service sales		73,121		72,913
Property management fees		7,233		7,192
Life insurance premiums		32,355		35,920
Property and casualty insurance premiums		18,365		16,283
Net investment and interest income		33,098		28,227
Other revenue		76,752		70,766
Total revenues		1,150,214		1,104,507
Costs and expenses:
Operating expenses		565,413		529,350
Commission expenses		86,099		85,334
Cost of sales		43,930		46,402
Benefits and losses		45,825		45,773
Amortization of deferred policy acquisition costs		6,515		5,899
Lease expense		6,356		8,170
Depreciation, net of gains on disposal of ($17,999 and $12,036, respectively)		151,553		132,625
Net (gains) losses on disposal of real estate		(217)		10
Total costs and expenses		905,474		853,563
Earnings from operations		244,740		250,944
Other components of net periodic benefit costs		(264)		(254)
Interest expense		(39,122)		(35,030)
Pretax earnings		205,354		215,660
Income tax expense		(49,028)		(52,118)
Earnings available to common stockholders	$	156,326	$	163,542
Basic and diluted earnings per common stock	$	7.97	$	8.35
Weighted average common stock outstanding: Basic and diluted		19,602,566		19,591,312

Related party revenues for the second quarter of fiscal 2020 and 2019, net of eliminations, were $7.2 million.

Related party costs and expenses for the second quarter of fiscal 2020 and 2019, net of eliminations, were $19.3 million and $19.0 million, respectively.

Please see Note 10, Related Party Transactions, of the Notes to Condensed Consolidated Financial Statements for more information on the related party revenues and costs and expenses.

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

AMERCO AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED Statements of operations

		Six Months Ended September 30,
		2019		2018
		(Unaudited)
		(In thousands, except share and per share amounts)
Revenues:
Self-moving equipment rentals	$	1,552,921	$	1,498,315
Self-storage revenues		203,239		177,705
Self-moving and self-storage products and service sales		153,147		152,154
Property management fees		14,389		14,608
Life insurance premiums		65,065		72,808
Property and casualty insurance premiums		31,789		29,064
Net investment and interest income		68,847		52,832
Other revenue		140,066		126,598
Total revenues		2,229,463		2,124,084
Costs and expenses:
Operating expenses		1,099,885		1,025,904
Commission expenses		166,998		164,591
Cost of sales		92,859		96,283
Benefits and losses		94,831		94,327
Amortization of deferred policy acquisition costs		12,579		11,930
Lease expense		13,392		16,339
Depreciation, net of gains on disposal of ($34,677 and $28,331 respectively)		292,153		259,052
Net (gains) losses on disposal of real estate		(1,839)		10
Total costs and expenses		1,770,858		1,668,436
Earnings from operations		458,605		455,648
Other components of net periodic benefit costs		(527)		(507)
Interest expense		(78,010)		(70,284)
Pretax earnings		380,068		384,857
Income tax expense		(91,320)		(93,466)
Earnings available to common stockholders	$	288,748	$	291,391
Basic and diluted earnings per common stock	$	14.73	$	14.87
Weighted average common stock outstanding: Basic and diluted		19,600,211		19,590,946

Related party revenues for the first six months of fiscal 2020 and 2019, net of eliminations, were $14.4 million and $14.6 million, respectively.

Related party costs and expenses for the first six months of fiscal 2020 and 2019, net of eliminations, were $37.1 million and $36.2 million, respectively.

Please see Note 10, Related Party Transactions, of the Notes to Condensed Consolidated Financial Statements for more information on the related party revenues and costs and expenses.

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

AMERCO AND CONSOLIDATED SUBSIDIARIES

Condensed consolidatED statements of COMPREHENSIVE INCOME (loss)

Quarter Ended September 30, 2019		Pre-tax		Tax		Net
		(Unaudited)
		(In thousands)
Comprehensive income:
Net earnings	$	205,354	$	(49,028)	$	156,326
Other comprehensive income (loss):
Foreign currency translation		629				629
Unrealized net gain on investments		52,651		(11,346)		41,305
Change in fair value of cash flow hedges		(840)		207		(633)
Amounts reclassified into earnings on hedging activities		(366)		89		(277)
Total comprehensive income	$	257,428	$	(60,078)	$	197,350
Quarter Ended September 30, 2018		Pre-tax		Tax		Net
		(Unaudited)
		(In thousands)
Comprehensive income:
Net earnings	$	215,660	$	(52,118)	$	163,542
Other comprehensive income (loss):
Foreign currency translation		1,113				1,113
Unrealized net loss on investments		(22,280)		4,679		(17,601)
Change in fair value of cash flow hedges		477		(117)		360
Amounts reclassified into earnings on hedging activities		(191)		47		(144)
Total comprehensive income	$	194,779	$	(47,509)	$	147,270

Six Months Ended September 30, 2019		Pre-tax		Tax		Net
		(Unaudited)
		(In thousands)
Comprehensive income:
Net earnings	$	380,068	$	(91,320)	$	288,748
Other comprehensive income (loss):
Foreign currency translation		3,611				3,611
Unrealized net gain on investments		104,478		(22,385)		82,093
Change in fair value of cash flow hedges		(2,034)		500		(1,534)
Amounts reclassified into earnings on hedging activities		(425)		104		(321)
Total comprehensive income	$	485,698	$	(113,101)	$	372,597
Six Months Ended September 30, 2018		Pre-tax		Tax		Net
		(Unaudited)
		(In thousands)
Comprehensive income:
Net earnings	$	384,857	$	(93,466)	$	291,391
Other comprehensive income (loss):
Foreign currency translation		(980)				(980)
Unrealized net loss on investments		(72,498)		15,225		(57,273)
Change in fair value of cash flow hedges		1,701		(418)		1,283
Amounts reclassified into earnings on hedging activities		(855)		210		(645)
Total comprehensive income	$	312,225	$	(78,449)	$	233,776

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

Amerco and consolidated subsidiaries

condensed consolidated statements of changes in stockholders’ equity

Description		Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Less: Treasury Common Stock		Less: Treasury Preferred Stock		Less: Unearned Employee Stock Ownership Plan Shares		Total Stockholders' Equity
	(In thousands)
Balance as of June 30, 2019	$	10,497	$	453,535	$	(23,873)	$	4,109,384	$	(525,653)	$	(151,997)	$	(2,870)	$	3,869,023
Increase in market value of released ESOP shares		0		226		0		0		0		0		0		226
Release of unearned ESOP shares		0		0		0		0		0		0		1,347		1,347
Purchase of ESOP shares		0		0		0		0		0		0		(74)		(74)
Foreign currency translation		0		0		629		0		0		0		0		629
Unrealized net gain on investments, net of tax		0		0		41,305		0		0		0		0		41,305
Change in fair value of cash flow hedges, net of tax		0		0		(633)		0		0		0		0		(633)
Amounts reclassified into earnings on hedging activities						(277)										(277)
Net earnings		0		0		0		156,326		0		0		0		156,326
Common stock dividends: ($0.50 per share for fiscal 2020)		0		0		0		(9,804)		0		0		0		(9,804)
Net activity		0		226		41,024		146,522		0		0		1,273		189,045
Balance as of September 30, 2019	$	10,497	$	453,761	$	17,151	$	4,255,906	$	(525,653)		(151,997)	$	(1,597)	$	4,058,068
Balance as of June 30, 2018	$	10,497	$	452,862	$	(45,966)	$	3,763,339	$	(525,653)	$	(151,997)	$	(6,937)	$	3,496,145
Increase in market value of released ESOP shares		0		144		0		0		0		0		0		144
Release of unearned ESOP shares		0		0		0		0		0		0		2,694		2,694
Purchase of ESOP shares		0		0		0		0		0		0		(3,292)		(3,292)
Foreign currency translation		0		0		1,113		0		0		0		0		1,113
Unrealized net loss on investments, net of tax		0		0		(17,601)		0		0		0		0		(17,601)
Change in fair value of cash flow hedges, net of tax		0		0		360		0		0		0		0		360
Amounts reclassified into earnings on hedging activities						(144)										(144)
Net earnings		0		0		0		163,542		0		0		0		163,542
Common stock dividends: ($0.50 per share for fiscal 2019)		0		0		0		(9,794)		0		0		0		(9,794)
Net activity		0		144		(16,272)		153,748		0		0		(598)		137,022
Balance as of September 30, 2018	$	10,497	$	453,006	$	(62,238)	$	3,917,087	$	(525,653)	$	(151,997)	$	(7,535)	$	3,633,167

The accompanying notes are an integral part of these consolidated financial statements.

5

Amerco and consolidated subsidiaries

condensed consolidated statements of changes in stockholders’ equity

Description		Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Less: Treasury Common Stock		Less: Treasury Preferred Stock		Less: Unearned Employee Stock Ownership Plan Shares		Total Stockholders' Equity
	(In thousands)
Balance as of March 31, 2019	$	10,497	$	453,326	$	(66,698)	$	3,976,962	$	(525,653)	$	(151,997)	$	(4,048)	$	3,692,389
Increase in market value of released ESOP shares		0		435		0		0		0		0		0		435
Release of unearned ESOP shares		0		0		0		0		0		0		2,656		2,656
Purchase of ESOP shares		0		0		0		0		0		0		(205)		(205)
Foreign currency translation		0		0		3,611		0		0		0		0		3,611
Unrealized net gain on investments, net of tax		0		0		82,093		0		0		0		0		82,093
Change in fair value of cash flow hedges, net of tax		0		0		(1,534)		0		0		0		0		(1,534)
Amounts reclassified into earnings on hedging activities						(321)										(321)
Net earnings		0		0		0		288,748		0		0		0		288,748
Common stock dividends: ($0.50 per share for fiscal 2020)		0		0		0		(9,804)		0		0		0		(9,804)
Net activity		0		435		83,849		278,944		0		0		2,451		365,679
Balance as of September 30, 2019	$	10,497	$	453,761	$	17,151	$	4,255,906	$	(525,653)		(151,997)	$	(1,597)	$	4,058,068
Balance as of March 31, 2018	$	10,497	$	452,746	$	(4,623)	$	3,635,561	$	(525,653)	$	(151,997)	$	(7,823)	$	3,408,708
Increase in market value of released ESOP shares		0		260		0		0		0		0		0		260
Release of unearned ESOP shares		0		0		0		0		0		0		5,388		5,388
Purchase of ESOP shares		0		0		0		0		0		0		(5,100)		(5,100)
Foreign currency translation		0		0		(980)		0		0		0		0		(980)
Unrealized net loss on investments, net of tax		0		0		(57,273)		0		0		0		0		(57,273)
Change in fair value of cash flow hedges, net of tax		0		0		1,283		0		0		0		0		1,283
Amounts reclassified into earnings on hedging activities						(645)										(645)
Adjustment for adoption of ASU 2016 - 01		0		0		0		9,724		0		0		0		9,724
Net earnings		0		0		0		291,391		0		0		0		291,391
Common stock dividends: ($1.00 per share for fiscal 2019)		0		0		0		(19,589)		0		0		0		(19,589)
Net activity		0		260		(57,615)		281,526		0		0		288		224,459
Balance as of September 30, 2018	$	10,497	$	453,006	$	(62,238)	$	3,917,087	$	(525,653)	$	(151,997)	$	(7,535)	$	3,633,167

The accompanying notes are an integral part of these consolidated financial statements.

6

AMERCO AND CONSOLIDATED subsidiaries

Condensed consolidatED statements of cash flows

		Six Months Ended September 30,
		2019		2018
		(Unaudited)
		(In thousands)
Cash flows from operating activities:
Net earnings	$	288,748	$	291,391
Adjustments to reconcile net earnings to cash provided by operations:
Depreciation		326,830		287,383
Amortization of deferred policy acquisition costs		12,579		11,930
Amortization of premiums and accretion of discounts related to investments, net		6,481		6,457
Amortization of debt issuance costs		2,100		2,013
Interest credited to policyholders		26,584		17,726
Change in allowance for losses on trade receivables		(113)		309
Change in allowance for inventories and parts reserves		537		1,148
Net gains on disposal of personal property		(34,677)		(28,331)
Net (gains) losses on disposal of real estate		(1,839)		10
Net (gains) losses on sales of investments		(7,595)		55
Net (gains) losses on equity investments		(2,553)		1,344
Deferred income taxes		83,708		88,485
Net change in other operating assets and liabilities:
Reinsurance recoverables and trade receivables		2,471		(14,453)
Inventories and parts		613		(4,347)
Prepaid expenses		(21,908)		(17,709)
Capitalization of deferred policy acquisition costs		(10,370)		(12,926)
Other assets		525		58,139
Related party assets		(5,019)		6,181
Accounts payable and accrued expenses		60,587		57,744
Policy benefits and losses, claims and loss expenses payable		10,709		(49,774)
Other policyholders' funds and liabilities		(4,136)		3,302
Deferred income		2,077		(124)
Related party liabilities		1,425		(3,276)
Net cash provided by operating activities		737,764		702,677
Cash flows from investing activities:
Escrow deposits		5,573		1,362
Purchases of:
Property, plant and equipment		(1,589,371)		(1,114,544)
Short term investments		(20,380)		(22,335)
Fixed maturities investments		(178,626)		(239,972)
Equity securities		(83)		(957)
Preferred stock		0		(81)
Real estate		(368)		(218)
Mortgage loans		(19,660)		(24,132)
Proceeds from sales and paydowns of:
Property, plant and equipment		401,451		429,910
Short term investments		17,282		24,568
Fixed maturities investments		127,683		64,651
Preferred stock		0		1,125
Real estate		311		–
Mortgage loans		4,299		12,912
Net cash used by investing activities		(1,251,889)		(867,711)
Cash flows from financing activities:
Borrowings from credit facilities		658,745		313,299
Principal repayments on credit facilities		(143,634)		(182,955)
Payment of debt issuance costs		(2,301)		(1,420)
Finance/capital lease payments		(180,902)		(147,913)
Employee stock ownership plan stock		(206)		(137)
Common stock dividends paid		(19,600)		(29,385)
Net contribution from (to) related party		21,600		0
Investment contract deposits		105,846		179,608
Investment contract withdrawals		(78,177)		(71,228)
Net cash provided (used) by financing activities		361,371		59,869
Effects of exchange rate on cash		4,284		(1,783)
Decrease in cash and cash equivalents		(148,470)		(106,948)
Cash and cash equivalents at the beginning of period		673,701		759,388
Cash and cash equivalents at the end of period	$	525,231	$	652,440

The accompanying notes are an integral part of these condensed consolidated financial statements

7

amerco and consolidated subsidiaries

notes to condensed consolidated financial statements – (continued)

1.Basis of Presentation

AMERCO, a Nevada corporation (“AMERCO”), has a second fiscal quarter that ends on the 30th of September for each year that is referenced. Our insurance company subsidiaries have a second quarter that ends on the 30th of June for each year that is referenced. They have been consolidated on that basis. Our insurance companies’ financial reporting processes conform to calendar year reporting as required by state insurance departments. Management believes that consolidating their calendar year into our fiscal year financial statements does not materially affect the presentation of financial position or results of operations. We disclose material events, if any, occurring during the intervening period. Consequently, all references to our insurance subsidiaries’ years 2019 and 2018 correspond to fiscal 2020 and 2019 for AMERCO.

Accounts denominated in non-U.S. currencies have been translated into U.S. dollars. Certain amounts reported in previous years have been reclassified to conform to the current presentation.

The condensed consolidated balance sheet as of September 30, 2019 and the related condensed consolidated statements of operations, comprehensive income (loss), stockholders’ equity for the second quarter and first six months of fiscal 2020 and 2019 and cash flows for the six months of fiscal 2020 and 2019 are unaudited.

In our opinion, all adjustments necessary for the fair presentation of such condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. Interim results are not necessarily indicative of results for a full year. The information in this Quarterly Report on Form 10-Q (“Quarterly Report”) should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2019.

Intercompany accounts and transactions have been eliminated.

Description of Legal Entities

AMERCO is the holding company for:

U-Haul International, Inc. (“U-Haul”);

Amerco Real Estate Company (“Real Estate”);

Repwest Insurance Company (“Repwest”); and

Oxford Life Insurance Company (“Oxford”).

Unless the context otherwise requires, the terms “Company,” “we,” “us” or “our” refer to AMERCO and all of its legal subsidiaries.

Description of Operating Segments

AMERCO has three (3) reportable segments. They are Moving and Storage, Property and Casualty Insurance and Life Insurance.

The Moving and Storage operating segment (“Moving and Storage”) includes AMERCO, U-Haul and Real Estate and the wholly owned subsidiaries of U-Haul and Real Estate. Operations consist of the rental of trucks and trailers, sales of moving supplies, sales of towing accessories, sales of propane, and the rental of fixed and portable moving and storage units to the “do-it-yourself” mover and management of self-storage properties owned by others. Operations are conducted under the registered trade name U-Haul® throughout the United States and Canada.

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The Property and Casualty Insurance operating segment (“Property and Casualty Insurance”) includes Repwest and its wholly owned subsidiaries and ARCOA Risk Retention Group (“ARCOA”). Property and Casualty Insurance provides loss adjusting and claims handling for U-Haul® through regional offices in the United States and Canada. Property and Casualty Insurance also underwrites components of the Safemove®, Safetow®, Safemove Plus®, Safestor® and Safestor Mobile® protection packages to U-Haul customers. The business plan for Property and Casualty Insurance includes offering property and casualty insurance products in other U-Haul-related programs. ARCOA is a group captive insurer owned by us and our wholly owned subsidiaries whose purpose is to provide insurance products related to our moving and storage business.

The Life Insurance operating segment (“Life Insurance”) includes Oxford and its wholly owned subsidiaries. Life Insurance provides life and health insurance products primarily to the senior market through the direct writing and reinsuring of life insurance, Medicare supplement and annuity policies.

2. Earnings per Share

Our earnings per share is calculated by dividing our earnings available to common stockholders by the weighted average common shares outstanding, basic and diluted.

The weighted average common shares outstanding exclude post-1992 shares of the employee stock ownership plan that have not been committed to be released. The unreleased shares, net of shares committed to be released, were 16,128 as of September 30, 2018. As of September 30, 2019, all of these shares have been released.

3. Investments

Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

We deposit bonds with insurance regulatory authorities to meet statutory requirements. The adjusted cost of bonds on deposit with insurance regulatory authorities was $29.4 million and $30.8 million as of September 30, 2019 and March 31, 2019, respectively.

Available-for-Sale Investments

Available-for-sale investments as of September 30, 2019 were as follows:

		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses More than 12 Months		Gross Unrealized Losses Less than 12 Months		Estimated Market Value
		(Unaudited)
		(In thousands)
U.S. treasury securities and government obligations	$	133,938	$	7,673	$	(148)	$	0	$	141,463
U.S. government agency mortgage-backed securities		40,588		694		(2)		0		41,280
Obligations of states and political subdivisions		296,325		20,642		(155)		0		316,812
Corporate securities		1,654,981		77,467		(2,329)		(176)		1,729,943
Mortgage-backed securities		150,143		5,529		(1)		(49)		155,622
Redeemable preferred stocks		1,493		74		0		0		1,567
	$	2,277,468	$	112,079	$	(2,635)	$	(225)	$	2,386,687

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Available-for-sale investments at March 31, 2019 were as follows:

		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses More than 12 Months		Gross Unrealized Losses Less than 12 Months		Estimated Market Value
		(In thousands)
U.S. treasury securities and government obligations	$	136,010	$	2,409	$	(2,104)	$	(447)	$	135,868
U.S. government agency mortgage-backed securities		31,101		433		(146)		(19)		31,369
Obligations of states and political subdivisions		298,955		8,079		(233)		(905)		305,896
Corporate securities		1,613,199		14,777		(14,257)		(24,986)		1,588,733
Mortgage-backed securities		148,203		880		(285)		(903)		147,895
Redeemable preferred stocks		1,493		20		0		(45)		1,468
	$	2,228,961	$	26,598	$	(17,025)	$	(27,305)	$	2,211,229

The available-for-sale tables include gross unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

We sold available-for-sale securities with a fair value of $124.8 million during the first six months of fiscal 2020. The gross realized gains on these sales totaled $3.6 million. The gross realized losses on these sales totaled $0.2 million.

The unrealized losses of more than twelve months in the available-for-sale tables are considered temporary declines. We track each investment with an unrealized loss and evaluate them on an individual basis for other-than-temporary impairments, including obtaining corroborating opinions from third party sources, performing trend analysis and reviewing management’s future plans. Certain of these investments may have declines determined by management to be other-than-temporary and we recognize these write-downs, if any, through earnings. There were no write-downs in the second quarter or first six months of fiscal 2020 or 2019.

The investment portfolio primarily consists of corporate securities and obligations of states and political subdivisions. We believe we monitor our investments as appropriate. Our methodology of assessing other-than-temporary impairments is based on security-specific analysis as of the balance sheet date and considers various factors including the length of time to maturity, the extent to which the fair value has been less than the cost, the financial condition and the near-term prospects of the issuer, and whether the debtor is current on its contractually obligated interest and principal payments. Nothing has come to management’s attention that would lead to the belief that any issuer would not have the ability to meet the remaining contractual obligations of the security, including payment at maturity. We have the ability and intent not to sell our fixed maturity and common stock investments for a period of time sufficient to allow us to recover our costs.

The portion of other-than-temporary impairment related to a credit loss is recognized in earnings. The significant inputs utilized in the evaluation of mortgage-backed securities credit losses include ratings, delinquency rates, and prepayment activity. The significant inputs utilized in the evaluation of asset backed securities credit losses include the time frame for principal recovery and the subordination and value of the underlying collateral.

There were no credit losses recognized in earnings for which a portion of an other-than-temporary impairment was recognized in accumulated other comprehensive income (loss) (“AOCI”) for the first six months of fiscal 2020 and fiscal 2019, respectively.

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The adjusted cost and estimated market value of available-for-sale investments by contractual maturity were as follows:

		September 30, 2019				March 31, 2019
		Amortized Cost		Estimated Market Value		Amortized Cost		Estimated Market Value
		(Unaudited)
		(In thousands)
Due in one year or less	$	83,028	$	83,337	$	71,987	$	71,954
Due after one year through five years		521,038		536,225		541,195		540,658
Due after five years through ten years		694,348		729,026		621,031