U HAUL INTERNATIONAL INC - 10-Q Quarterly Report

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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, 2002

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

For the transition period from __________________ to __________________


Commission	Registrant, State of Incorporation	I.R.S. Employer
File Number	Address and Telephone Number	Identification No.

1-11255	AMERCO	88-0106815




	(A Nevada Corporation)




	1325 Airmotive Way, Ste. 100




	Reno, Nevada 89502-3239




	Telephone (775) 688-6300









2-38498	U-Haul International, Inc.	86-0663060




	(A Nevada Corporation)




	2727 N. Central Avenue




	Phoenix, Arizona 85004




	Telephone (602) 263-6645

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 [ ].

20,514,958 shares of AMERCO Common Stock, $0.25 par value were outstanding at September 30, 2002.

5,385 shares of U-Haul International, Inc. Common Stock, $0.01 par value, were outstanding at November 11, 2002.

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION
	ITEM 1. FINANCIAL STATEMENTS
		Condensed Consolidated Balance Sheets
		Condensed Consolidated Statements of Earnings
		Condensed Consolidated Statements of Comprehensive Income
		Condensed Consolidated Statements of Earnings
		Condensed Consolidated Statements of Comprehensive Income
		Condensed Consolidated Statements of Cash Flows
		Notes to Condensed Consolidated Financial Statements
	ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
	ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
	ITEM 4. CONTROLS AND PROCEDURES
PART II. OTHER INFORMATION
	ITEM 1. LEGAL PROCEEDINGS
	ITEM 3. DEFAULTS UPON SENIOR SECURITIES
	ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
	ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
EX-10.10A
EX-10.11A
EX-10.35
EX-10.36
EX-10.37
EX-10.38
EX-10.39
EX-10.40
EX-10.41
EX-10.42
EX-10.43
EX-10.44
EX-10.45
EX-10.46
EX-10.46A
EX-10.47
EX-10.48
EX-10.48A
EX-10.49
EX-10.50
EX-10.50A
EX-10.51
EX-10.52
EX-10.53
EX-10.53A
EX-10.54
EX-10.54.A
EX-10.55
EX-10.55a
EX-10.56
EX-10.56A
EX-10.57
EX-10.57A
EX-10.58
EX-10.58A
EX-10.59
EX-10.60
EX-10.61
EX-10.62
EX-10.63
EX-99.1
EX-99.2
EX-99.3
EX-99.4

TABLE OF CONTENTS


PART I	FINANCIAL INFORMATION




Item 1.	Financial Statements




	a) Condensed Consolidated Balance Sheets as of September 30, 2002 (unaudited) and March 31, 2002	4




	b) Condensed Consolidated Statements of Earnings for the Six months ended September 30, 2002 and 2001 (unaudited)	6




	c) Condensed Consolidated Statements of Comprehensive Income for the Six months ended September 30, 2002 and 2001 (unaudited)	7




	d) Condensed Consolidated Statements of Earnings for the Quarters ended September 30, 2002 and 2001 (unaudited)	8




	e) Condensed Consolidated Statements of Comprehensive Income for the Quarters ended September 30, 2002 and 2001 (unaudited)	9




	f) Condensed Consolidated Statements of Cash Flows for the Six months ended September 30, 2002 and 2001 (unaudited)	10




	g) Notes to Condensed Consolidated Financial Statements	11




Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33




Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41




Item 4.	Controls and Procedures	41




PART II	OTHER INFORMATION




Item 1.	Legal Proceedings	42




Item 3.	Defaults Upon Senior Securities	43




Item 4.	Submission of Matters to a Vote of Security Holders	43




Item 6.	Exhibits and Reports on Form 8-K	44

THIS PAGE LEFT

INTENTIONALLY BLANK

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AMERCO AND CONSOLIDATED SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED

SUBSIDIARIES

Condensed Consolidated Balance Sheets


		September 30,			March 31,
Assets		2002			2002

		(Unaudited)
		(in thousands)
Cash and cash equivalents		$	83,530		$	97,672




Receivables			284,512			279,914




Inventories, net			69,687			76,519




Prepaid expenses			43,916			31,069




Investments, fixed maturities			894,295			994,875




Investments, other			198,212			200,437
Other assets			150,708			178,066





			1,724,860			1,858,552




Property, plant and equipment, at cost:




	Buildings and improvements		716,346			703,841




	SACH Buildings and improvements		468,804			458,077




	Rental trucks		1,119,666			1,071,604




	Other property, plant and equipment		624,188			626,391




	SACH other property, plant and equipment		266,778			266,172

			3,195,782			3,126,085




	Less accumulated depreciation		(1,257,013	)		(1,211,182	)

	Total property, plant and equipment		1,938,769			1,914,903

Total Assets		$	3,663,629		$	3,773,455

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

AMERCO AND CONSOLIDATED SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED

SUBSIDIARIES

Condensed Consolidated Balance Sheets, Continued


			September 30,			March 31,
Liabilities and Stockholders' Equity			2002			2002

			(Unaudited)
			(in thousands)
Liabilities:




	AMERCO’s notes and loans payable		$	908,509		$	1,045,802




	SAC Holdings notes and loans payable			579,403			557,761




	Policy benefits and losses, claims and loss expenses payable			703,304			729,343




	Liabilities from premium deposits			610,248			572,793




	Other liabilities			295,032			368,650

		Total liabilities		3,096,496			3,274,349




Commitments and Contingent Liabilities




Stockholders’ equity:




	Serial preferred stock -




		Series A preferred stock		—			—




		Series B preferred stock		—			—




	Serial common stock -




		Series A common stock		1,441			1,441








	Common stock			9,822			9,122




	Additional paid-in capital			261,217			267,712




	Accumulated other comprehensive loss			(48,418	)		(32,384	)




	Retained earnings			792,484			716,614




	Cost of common shares in treasury, net			(435,555	)		(449,247	)




	Unearned ESOP shares			(13,858	)		(14,152	)

		Total stockholders’ equity		567,133			499,106




Total Liabilities and Stockholders’ Equity			$	3,663,629		$	3,773,455

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

AMERCO AND CONSOLIDATED SUBSIDIARIES AND

SAC HOLDING CORPORATION AND CONSOLIDATED

SUBSIDIARIES

Condensed Consolidated Statements of Earnings

Six months ended September 30,

(Unaudited)


			2002			2001

			(in thousands, except share and per share data)
Revenues




	Rental revenue		$	788,904		$	746,907




	Net sales			130,635			130,592




	Premiums			163,016			202,880




	Net investment and interest income			25,356			31,482

		Total revenues		1,107,911			1,111,861




Costs and expenses




	Operating expenses			546,267			558,647




	Cost of sales			65,522			71,171




	Benefits and losses			140,433			180,773




	Amortization of deferred policy acquisition costs			21,642			20,933




	Lease expense			88,055			91,213




	Depreciation, net			64,904			45,707

Total costs and expenses				926,823			968,444

Earnings from operations				181,088			143,417




	Interest expense			54,887			52,517

Pretax earnings				126,201			90,900




Income tax expense				(45,108	)		(34,261	)





	Net earnings			81,093			56,639

Less: Preferred Stock Dividends				6,482			6,482

Earnings available to common shareholders				74,611			50,157

Basic and diluted earnings per common share:			$	3.59		$	2.37

Basic and diluted average common shares outstanding:				20,779,543			21,192,166

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

AMERCO AND CONSOLIDATED SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED

SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

Six months ended September 30,

(Unaudited)


				2002			2001

				(in thousands)
Comprehensive income:




	Net earnings			$	81,093		$	56,639




		Changes in other comprehensive income:




			Foreign currency translation		(3,381	)		(4,617	)




			Fair market value of cash flow hedge		—			(647	)




			Unrealized loss on investments		(12,653	)		(4,374	)

			Total comprehensive income	$	65,059		$	47,001

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

AMERCO AND CONSOLIDATED SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED

SUBSIDIARIES

Condensed Consolidated Statements of Earnings

Quarters ended September 30,

(Unaudited)


			2002			2001

			(in thousands, except share and per share data)
Revenues




	Rental revenue		$	413,050		$	390,467




	Net sales			62,447			61,803




	Premiums			75,466			102,550




	Net investment and interest income			11,591			16,387

		Total revenues		562,554			571,207




Costs and expenses




	Operating expense			283,481			293,100




	Cost of sales			32,219			34,733




	Benefits and losses			64,015			89,341




	Amortization of deferred policy acquisition costs			11,314			11,139




	Lease expense			47,232			44,571




	Depreciation, net			32,820			13,162

Total costs and expenses				471,081			486,046




Earnings from operations				91,473			85,161




	Interest expense			27,955			27,008

Pretax earnings				63,518			58,153




Income tax expense				(22,964	)		(22,415	)

		Net earnings		40,554			35,738

Less: Preferred Stock Dividends				(3,241	)		(3,241	)

Earnings available to common shareholders				37,313			32,497

Basic and diluted earnings per common share:			$	1.79		$	1.54

Basic and diluted average common shares outstanding:				20,804,016			21,106,343

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

AMERCO AND CONSOLIDATED SUBSIDIARIES

SAC HOLDING CORPORATIONS AND CONSOLIDATED

SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

Quarters ended September 30,

(Unaudited)


				2002			2001

				(in thousands)
Comprehensive income:




	Net earnings			$	40,554		$	35,738




		Changes in other comprehensive income:




			Foreign currency translation		(4,416	)		(6,114	)




			Fair market value of cash flow hedge		—			(1,004	)




			Unrealized loss on investments		(9,315	)		(13,163	)

			Total comprehensive income	$	26,823		$	15,457

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

AMERCO AND CONSOLIDATED SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED

SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

Six months ended September 30,

(Unaudited)


			2002			2001

			(in thousands)
Net cash provided by operating activities			$	111,477		$	43,912

Cash flows from investing activities:




	Purchases of investments:




		Property, plant and equipment		(122,918	)		(108,224	)




		Fixed maturities		(134,993	)		(92,465	)




		Real estate		(29,391	)		(36	)




		Mortgage loans		—			(561	)




	Proceeds from sale of investments:




		Property, plant and equipment		46,030			60,945




		Fixed maturities		202,255			75,973




		Mortgage loans		10,450			6,889




Changes in other investments				32,751			38,751

Net cash provided (used) by investing activities				4,184			(18,728	)

Cash flows from financing activities:




	Net change in short-term borrowings			(12,500	)		(77,494	)




	Principal borrowings (payments) on notes			(150,014	)		26,861




	Investment contract deposits			89,083			74,159




	Investment contract withdrawals			(51,262	)		(65,079	)




	Changes in other financing activities			3,837			(3,166	)

Net cash used by financing activities				(120,856	)		(44,719	)

Increase (decrease) in cash and cash equivalents				(5,195	)		(19,535	)




Cash and cash equivalents at beginning of period				88,725			92,525

Cash and cash equivalents at end of period			$	83,530		$	33,253

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

AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

September 30, 2002, March 31, 2002 and September 30, 2001
(Unaudited)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION

AMERCO, a Nevada corporation (AMERCO), is the holding company for U-Haul International, Inc. (U-Haul), which conducts moving and storage operations; Amerco Real Estate Company (Real Estate), which conducts real estate operations; Republic Western Insurance Company (RepWest), which conducts property and casualty insurance operations; and Oxford Life Insurance Company (Oxford), which conducts life insurance operations.

SAC Holding Corporation and SAC Holding II Corporation (SAC Holdings) are Nevada corporations owned by Mark V. Shoen. Mark V. Shoen is the beneficial owner of 16.3% of AMERCO’s common stock and is an executive officer of U-Haul.

PRINCIPLES OF CONSOLIDATION

The condensed consolidated financial statements include the accounts of AMERCO and its wholly-owned subsidiaries and SAC Holdings and their subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. AMERCO has made significant loans to SAC Holdings and is entitled to participate in SAC Holdings’ excess cash flow (after senior debt service). All of the equity interest of SAC Holdings is owned by Mark V. Shoen, a significant shareholder and executive officer of AMERCO. AMERCO does not have an equity ownership interest in SAC Holdings, except for investments made by RepWest and Oxford in a SAC Holdings-controlled limited partnership which holds Canadian self-storage properties. SAC Holdings are not legal subsidiaries of AMERCO. AMERCO is not liable for the debts of SAC Holdings and there are no default provisions in AMERCO indebtedness that cross-default to SAC Holdings’ obligations. The condensed consolidated financial statements and notes are presented as permitted by Form 10-Q and do not contain certain information included in AMERCO’s annual financial statements and notes. For a more detailed presentation of the accounts and transactions of AMERCO, refer to AMERCO’s Form 10-K.

The condensed consolidated balance sheet as of September 30, 2002 and the related condensed consolidated statements of earnings, comprehensive income, and cash flows for the six months and quarters ended September 30, 2002 and 2001 are unaudited. In our opinion, all adjustments necessary for a fair presentation of such condensed consolidated financial statements have been included. Such adjustments consisted only of normal recurring items. Interim results are not necessarily indicative of results for a full year.

The accounts of AMERCO and SAC Holdings are consolidated due to SAC Holdings majority owner not qualifying as an independent third party to AMERCO and not maintaining a substantive residual equity investment, exclusive of unrealized appreciation of real estate held by SAC Holdings subsidiaries, in SAC Holdings during the entire period.

The operating results and financial position of RepWest and Oxford have been consolidated on the basis of a calendar year and, accordingly, are determined on a one quarter lag for financial reporting purposes. There were no effects related to intervening events, which would materially affect the consolidated financial position or results of operations for the financial statements presented herein except for a transfer of $7.5 million in cash and $65.5 million in real estate from the non-insurance operating entities to the insurance companies. These transferred assets and any related income or depreciation expense derived therefrom are not included in the consolidated financial statements of AMERCO and SAC Holdings as of September 30, 2002.

Certain reclassifications have been made to the financial statements for the six months and the quarter ended September 30, 2001 to conform with the current period’s presentation.

AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements, Continued
(Unaudited)

2. INVESTMENTS

A comparison of amortized cost to estimated market value for fixed maturities is as follows:


June 30, 2002	Par Value				Gross		Gross			Estimated
Consolidated	or number		Amortized		unrealized		unrealized			market
Held-to-Maturity	of shares		cost		gains		losses			value

	(in thousands)
U.S. treasury securities and government obligations	$	—	$	3,610	$	164		—		$	3,774




U.S. government agency mortgage-backed securities	$	—		11,245		265		(13	)		11,497




Corporate securities	$	43,607		43,704		1,591		(42	)		45,253




Mortgage-backed securities	$	35,264		34,827		699		(69	)		35,457




Redeemable preferred stocks		4,541		114,674		247		(3,307	)		111,614

			$	208,060	$	2,966	$	(3,431	)	$	207,595


June 30, 2002		Par Value				Gross		Gross			Estimated
Consolidated		or number		Amortized		unrealized		unrealized			market
Available-for-Sale		of shares		cost		gains		losses			value

		(in thousands)
U.S. treasury securities and government obligations		$	42,760	$	43,280	$	1,812	$	(319	)	$	44,773




U.S. government agency mortgage-backed securities		$	31,620		31,364		725		(39	)		32,050




Obligations of states and political subdivisions		$	15,925		16,065		660		(112	)		16,613




Corporate securities		$	608,680		604,300		14,257		(16,239	)		602,318




Mortgage-backed securities		$	31,270		31,203		1,013		(153	)		32,063




Redeemable preferred stocks			1,260		31,834		281		(447	)		31,668




Redeemable common stocks			633		7,900		—		(1,040	)		6,860

					765,946		18,748		(18,349	)		766,345

	Total			$	974,006	$	21,714	$	(21,780	)	$	973,940

AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements, Continued
(Unaudited)

3. SUMMARIZED CONSOLIDATED FINANCIAL INFORMATION OF INSURANCE SUBSIDIARIES

A summarized condensed consolidated balance sheet for RepWest is presented below:


			June 30,

			2002		2001

			(in thousands)
Investments, fixed maturities			$	313,096	$	396,466




Receivables				233,827		212,299




Due from affiliate				115,951		46,310




Other assets				123,988		79,996

		Total assets	$	786,862	$	735,071

Policy liabilities and accruals			$	460,321	$	381,350




Unearned premiums				64,568		113,463




Other policyholders’ funds and liabilities				52,081		59,117

	Total liabilities			576,970		553,930




Stockholder’s equity				209,892		181,141

		Total liabilities and stockholder’s equity	$	786,862	$	735,071

A summarized condensed consolidated income statement for RepWest is presented below:


			Quarter ended						Six months ended
			June 30,						June 30,

			2002			2001			2002			2001

			(in thousands)
Premiums			$	39,710		$	66,087		$	86,319		$	128,265




Net investment income				7,689			7,449			15,257			15,865

	Total revenue			47,399			73,536			101,576			144,130




Benefits and losses				34,298			62,371			79,945			122,638




Amortization of deferred policy acquisition costs				6,218			6,590			11,521			11,630




Operating expenses				6,633			17,904			12,647			28,774

	Total expenses			47,149			86,865			104,113			163,042

Income (loss) from operations				250			(13,329	)		(2,537	)		(18,912	)




Income tax benefit (expense)				(45	)		4,708			960			6,687

		Net income (loss)	$	205		$	(8,621	)	$	(1,577	)	$	(12,225	)

AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements, Continued
(Unaudited)

3. SUMMARIZED CONSOLIDATED FINANCIAL INFORMATION OF INSURANCE SUBSIDIARIES, continued

A summarized condensed consolidated balance sheet for Oxford is presented below:


			June 30,

			2002		2001

			(in thousands)
Investments, fixed maturities			$	581,199	$	577,939




Investments, other				169,775		119,972




Receivables				33,162		30,541




Deferred policy acquisition costs				91,585		83,280




Other assets				37,621		53,355

	Total assets		$	913,342	$	865,087

Policy liabilities and accruals			$	178,415	$	187,758




Premium deposits				610,248		532,993




Other policyholder’s fund and liabilities				8,549		26,556




Deferred federal income taxes				3,052		12,211

	Total liabilities			800,264		759,518




Stockholder’s equity				113,078		105,569

		Total liabilities and stockholder’s equity	$	913,342	$	865,087

A summarized condensed consolidated income statement for Oxford is presented below:


			Quarter ended						Six months ended
			June 30,						June 30,

			2002			2001			2002			2001

			(in thousands)
Premiums			$	41,035			37,905		$	80,693		$	77,538




Net investment income				2,443			6,975			7,773			13,184

	Total revenue			43,478			44,881			88,466			90,722




Benefits and losses				29,717			26,970			60,488			58,135




Amortization of deferred policy acquisition costs				5,096			4,538			10,121			9,292




Operating expenses				11,537			12,197			19,849			19,436

	Total expenses			46,350			43,705			90,458			86,863




Income (loss) from operations				(2,872	)		1,176			(1,992	)		3,859




Income tax benefit (expense)				1,003			(272	)		699			(1,232	)

		Net income (loss)	$	(1,869	)		904		$	(1,293	)	$	2,627

AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements, Continued
(Unaudited)

4. CONTINGENT LIABILITIES AND COMMITMENTS

During the six months ended September 30, 2002, a subsidiary of AMERCO entered into two transactions whereby the subsidiary sold rental trucks and trailers to unrelated third parties, which were subsequently leased back to an AMERCO subsidiary. AMERCO has guaranteed approximately $3.3 million of residual values at September 30, 2002 for these assets at the end of the lease. Following are the lease commitments for the leases executed during the six months and quarter ended September 30, 2002, and subsequently which have a term of more than one year:


Year ending	Lease
March 31,	Commitments

2003	$	708




2004		1,415




2005		1,415




2006		1,415




2007		1,415




Thereafter		4,753

	$	11,121

In the normal course of business, AMERCO is a defendant in a number of suits and claims. AMERCO is also a party to several administrative proceedings arising from state and local provisions that regulate the removal and/or clean-up of underground fuel storage tanks. In our opinion, none of such suits, claims or proceedings involving AMERCO, individually, or in the aggregate, are expected to result in a material loss.

Compliance with environmental requirements of federal, state and local governments significantly affects Real Estate’s business operations. Among other things, these requirements regulate the discharge of materials into the water, air and land and govern the use and disposal of hazardous substances. Real Estate is aware of issues regarding hazardous substances on some of its properties. Real Estate regularly makes capital and operating expenditures to stay in compliance with environmental laws and has put in place a remedial plan at each site where it believes such a plan is necessary. Since 1988, Real Estate has managed a testing and removal program for underground storage tanks. Under this program, over 3,000 tanks have been removed at a cost of approximately $44.5 million.

A subsidiary of U-Haul, INW Company (INW), owns one property located within two different state hazardous substance sites in the State of Washington. The sites are referred to as the “Yakima Valley Spray Site” and the Yakima Railroad Area.” INW has been named as a“potentially responsible party” under state law with respect to this property as it relates to both sites. As a result of the cleanup costs of approximately $5.5 to $10.0 million required by the State of Washington, INW filed for reorganization under federal bankruptcy laws in May of 2001. The potential liability to INW could be in the range of $2.0 million to $5.5 million.

Based upon the information currently available, compliance with the environmental laws and the costs of investigation and cleanup of known hazardous waste sites are not expected to have a material adverse affect on AMERCO’s financial position of operating results.

took for costs incurred in resolution of prior litigation with certain members of the Shoen family and their corporations. We believe these income tax deductions are appropriate and we are vigorously contesting the IRS adjustments. We estimate that if we are unsuccessful in our challenge in all respects, based on our current tax positions, we could incur tax exposure totaling approximately $76.1 million plus interest.

AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements, Continued
(Unaudited)

5. SUPPLEMENTAL CASH FLOWS INFORMATION

The (increase) decrease in receivables, inventories, investments, other assets and other liabilities net of other operating and investing activities follows:


	Six months ended
	September 30,

	2002			2001

	(in thousands)
Receivables	$	4,598			(14,209	)

Inventories	$	(6,832	)		3,689

Investments	$	(102,805	)		9,731

Other Assets	$	(27,358	)		31,576

Other liabilities	$	(56,066	)		(28,448	)

AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements, Continued
(Unaudited)

6. NEW ACCOUNTING STANDARDS

In July 2002, the Financial Accounting Standards Board (“FASB”) issued Statements of Financial Accounting Standards No. 141, Business Combinations, and No. 142, Goodwill and Other Intangible Assets.

SFAS 141 supercedes Accounting Principles Board Opinion No. 16 (APB 16), Business Combinations. The most significant changes made by SFAS 141 are: (1) requiring that the purchase method of accounting be used for all business combinations initiated after June 30, 2001, (2) establishing specific criteria for the recognition of intangible assets separately from goodwill, and (3) requiring unallocated negative goodwill to be written off immediately as an extraordinary gain (instead of being deferred and amortized).

SFAS 142 supercedes APB 17, Intangible Assets. SFAS 142 primarily addresses the accounting for goodwill and intangible assets subsequent to their acquisition (i.e., the post-acquisition accounting). The provisions of SFAS 142 will be effective for fiscal years beginning after December 15, 2002. The most significant changes made by SFAS 142 are: (1) goodwill and indefinite lived intangible assets will no longer be amortized, (2) goodwill will be tested for impairment at least annually at the reporting unit level, (3) intangible assets deemed to have an indefinite life will be tested for impairment at least annually, and (4) the amortization period of intangible assets with finite lives will no longer be limited to forty years.

Implementation of SFAS Nos. 141 and 142 did not affect the consolidated financial position or results of operations.

Statement of Financial Accounting Standards No. 143, “Accounting for Asset Retirement Obligations”, requires recognition of the fair value of liabilities associated with the retirement of long-lived assets when a legal obligation to incur such costs arises as a result of the acquisition, construction, development and/or the normal operation of a long-lived asset. Upon recognition of the liability, a corresponding asset is recorded at present value and accreted over the life of the asset and depreciated over the remaining life of the long-lived asset. SFAS 143 defines a legal obligation as one that a party is required to settle as a result of an existing or enacted law, statute, ordinance, or written or oral contract or by legal construction of a contract under the doctrine of promissory estoppel. SFAS 143 is effective for fiscal years beginning after June 15, 2002.

In October 2001, the FASB issued SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. SFAS 144 requires that those long-lived assets be measured at the lower of carrying amount or fair value less cost to sell, whether reported in continuing operations or in discontinued operations. Therefore, discontinued operations will no longer be measured at net realizable value or include amounts for operating losses that have not yet occurred. SFAS 144 is effective for financial statements issued for fiscal years beginning after December 15, 2001 and, generally, are to be applied prospectively. We have adopted this statement effective April 1, 2002 and it did not affect our consolidated financial position or results of operations.

In April 2002, the FASB issued SFAS No. 145, Rescission of No. 4, (Reporting Gains and Losses from Extinguishment of Debt), No. 44 (Accounting for Intangible Assets of Motor Carriers), No. 64, (Extinguishments of Debt Made to Satisfy Sinking-Fund Requirements), Amendment of FASB Statement No. 13 (Accounting for Leases) and Technical Corrections. This statement eliminates the current requirement that gains and losses on debt extinguishement must be classified as extraordinary items in the income statement. Instead, such gains and losses will be classified as extraordinary items only if they are deemed to be unusual and infrequent, in accordance with the current GAAP criteria for extraordinary classification. In addition, SFAS 145 eliminates an inconsistency in lease accounting by requiring that modification of capital leases that result in reclassification as operating leases be accounted for consistent with sale-leaseback accounting rules. The statement also contains other nonsubstantive corrections to authoritative accounting literature. The changes related to debt extinguishment will be effective for fiscal years beginning after May 15, 2002, and the changes related to lease accounting will be effective for transactions occurring after May 15, 2002. Management recognizes the need to reclassify debt extinguishments previously reported as extraordinary.

AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements, Continued
(Unaudited)

In June 2002, the FASB issued Statement of Financial Accounting Standards No. 146, (SFAS 146) “Accounting for Costs Associated with Exit or Disposal Activities”, which addresses accounting for restructuring and similar costs. SFAS 146 supersedes previous accounting guidance, principally Emerging Issues Task Force (EITF) Issue No. 94-3. SFAS 146 requires that the liability for costs associated with an exit or disposal activity be recognized when the liability is incurred. Under EITF No. 94-3, a liability for an exit cost was recognized at the date of a company’s commitment to an exit plan. SFAS 146 also establishes that the liability should initially be measured and recorded at fair value. Accordingly, SFAS 146 may affect the timing of recognizing future restructuring costs as well as the amount recognized. The provisions of this Statement are effective for exit or disposal activities that are initiated after December 31, 2002. The Company intends to adopt the Statement at that time.

7. INDUSTRY SEGMENT AND GEOGRAPHIC AREA DATA

Industry Segment Data — AMERCO has four industry segments represented by Moving and Storage Operations (U-Haul), Real Estate (AREC), Property and Casualty Insurance (RepWest) and Life Insurance (Oxford). SAC Holdings has one industry segment, Moving and Storage.

Information concerning operations by industry segment follows:


Industry Segment		U-Haul			SACH
		Moving and			Moving and						Property/						Adjustments
		Storage			Storage			Real			Casualty			Life			and
		Operations			Operations			Estate			Insurance			Insurance			Eliminations			Consolidated

		(in thousands)
Six months ended September 30, 2002




Revenues:




	Outside	$	827,975			88,087			5,019			99,269			87,561			—			1,107,911




	Intersegment		—			24,231			29,709			2,306			905			(57,151	)		—

	Total revenues		827,975			112,318			34,728			101,575			88,466			(57,151	)		1,107,911




Depreciation/amortization			49,930			9,790			4,287			12,038			10,051			—			86,096




Interest expense			23,335			40,068			8,797			—			—			(17,313	)		54,887




Pretax Earnings (loss)			111,962			(205	)		18,803			(2,537	)		(1,992	)		170			126,201




Income tax Benefit (expense)			(40,334	)		(851	)		(6,581	)		960			699			999			(45,108	)




Net Earnings			71,628			(1,056	)		12,222			(1,577	)		(1,293	)		1,169			81,093




Earnings Available Common Shareholders		$	65,146			(1,056	)		12,222			(1,577	)		(1,293	)		1,169			74,611




Contribution to Earnings/Share		$	3.19			(0.05	)		0.59			(0.08	)		(0.06	)		—			3.59




Identifiable assets		$	1,518,008			996,720			604,531			786,862			913,342			(1,155,834	)		3,663,629

7. INDUSTRY SEGMENT AND GEOGRAPHIC AREA DATA - continued

Information concerning operations by industry segment follows:


Industry Segment	U-Haul Moving and			SACH Moving and						Property/						Adjustments
	Storage			Storage			Real			Casualty			Life			and
	Operations			Operations			Estate			Insurance			Insurance			Eliminations			Consolidated

	(in thousands)
Six months ended September 30, 2001




Revenues:




Outside	$	829,252			45,852			4,829			141,985			89,943			—			1,111,861




Intersegment		—			19,486			34,855			2,145			779			(57,265	)		—

Total revenues		829,252			65,338			39,684			144,130			90,722			(57,265	)		1,111,861




Depreciation/amortization		51,923			4,134			5,429			12,261			9,411			—			83,158




Interest expense		21,132			27,281			19,724			—			—			(15,620	)		52,517




Pretax Earnings (loss)		73,996			(1,590	)		22,693			(18,912	)		3,859			10,854			90,900




Income tax Benefit (expenses)		(30,912	)		(40	)		(7,943	)		6,687			(1,232	)		(821	)		(34,261	)




Net Earnings		42,122			(668	)		14,750			(12,225	)		2,627			10,033			56,639




Earnings Available Common Shareholders		35,640			(668	)		14,750			(12,225	)		2,627			10,033			50,157




Contribution to Earnings/Share	$	2.16			(0.03	)		0.70			(0.58	)		0.12			—		$	2.37




Identifiable assets		1,489,276			519,746			685,777			814,516			873,028			(778,673	)		3,603,670

AMERCO AND CONSOLIDATED SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED

SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements, Continued

(Unaudited)

7. INDUSTRY SEGMENT AND GEOGRAPHIC AREA DATA, continued


Industry Segment
		U-Haul Moving and			SACH Moving and						Property/						Adjustments
		Storage			Storage			Real			Casualty			Life			and
		Operations			Operations			Estate			Insurance			Insurance			Eliminations			Consolidated

		(in thousands)
Quarter ended September 30, 2002




Revenues:




	Outside	$	426,788			44,262			2,226			46,256			43,022			—			562,554




	Intersegment		—			13,309			14,325			1,142			455			(29,231	)		—

	Total revenues		426,788			57,571			16,551			47,398			43,477			(29,231	)		562,554




Depreciation/amortization			25,384			5,146			2,131			6,485			4,281			—			43,427




Interest expense			10,335			20,421			3,495			—			—			(6,296	)		27,955




Pretax Earnings (loss)			55,321			143			9,433			250			(2,874	)		1,245			63,518




Income tax Benefit (expenses)			(19,904	)		(810	)		(3,302	)		(45	)		1,003			94			(22,964	)




Net Earnings			35,417			(667	)		6,131			205			(1,871	)		1,339			40,554




Earnings Available Common Shareholders			32,176			(667	)		6,131			205			(1,871	)		1,339			37,313




Contribution to Earnings/Share			1.61			(0.03	)		0.30			0.01			(0.09	)		—			1.79




Identifiable assets			1,518,008			996,720			604,531			786,862			913,342			(1,155,834	)		3,663,269




Quarter ended September 30, 2001




Revenues:




	Outside	$	429,946			22,498			2,961			46,256			44,474			—			572,379




	Intersegment		—			10,354			16,979			1,036			407			(28,776	)		—

	Total revenues		429,946			32,852			19,940			73,536			44,881			(28,776	)		572,379




Depreciation/amortization			22,058			2,152			2,735			6,975			4,617			—			38,537




Interest expense			10,219			15,081			9,517			—			—			(8,375	)		26,442




Pretax Earnings (loss)			51,727			(1,589	)		18,085			(13,329	)		(5,740	)		16,250			65,404




Income tax Benefit (expenses)			(21,797	)		(40	)		(6,331	)		4,708			(272	)		(540	)		(24,272	)




Net Earnings			29,930			(1,629	)		11,754			(8,621	)		(6,012	)		15,710			41,132




Earnings Available Common Shareholders			26,689			(1,629	)		11,754			(8,621	)		(6,012	)		15,710			37,891




Contribution to Earnings/Share		$	1.99			(0.08	)		0.56			(0.41	)		(0.68	)		—			1.78




Identifiable assets		$	1,489,276			519,746			685,777			814,516			873,028			(778,673	)		3,603,670

AMERCO AND CONSOLIDATED SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED

SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements, Continued

(Unaudited)

7. INDUSTRY SEGMENT AND GEOGRAPHIC AREA DATA, continued


Geographic Area Data -	United								United
(All amounts are in U.S. $'s)	States			Canada		Consolidated			States			Canada		Consolidated

	Six months ended								Quarter ended

						(in thousands)
September 30, 2002




Total revenues	$	1,078,943		$	28,968	$	1,107,911		$	547,544		$	15,010	$	562,554




Depreciation/amortization		83,426			2,670		86,096			42,087			1,340		43,427




Interest expense		52,542			2,345		54,887			26,744			1,211		27,955




Pretax earnings		119,665			6,536		126,201			59,961			3,557		63,518




Income tax		(45,108	)		—		(45,108	)		(22,964	)		—		(22,964	)




Identifiable assets		3,614,557			49,072		3,663,629			3,614,557			49,072		3,663,629




September 30, 2001




Total revenues	$	1,087,234			27,699		1,114,933			531,500			14,635		546,135




Depreciation/amortization		81,024			2,134		83,158			37,613			924		38,537




Interest expense		50,445			2,094		52,539			25,317			1,125		26,442




Pretax earnings		97,228			6,985		104,213			61,456			3,948		65,404




Income tax		(37,757	)		—		(37,757	)		(24,272	)		—		(24,272	)




Identifiable assets		3,565,292			38,378		3,603,670			3,565,292			38,378		3,603,670

During September, 2001 the Company consummated a legal transfer of cash in the amount of $7.5 million and real estate properties in the amount of $65.5 million from Moving and Storage Operations and Real Estate to Oxford and RepWest. The transferred assets were recorded by RepWest and Oxford at their original book value; however, because the operating results and financial position of the Company’s insurance operations are reflected on a one quarter lag, the asset and related depreciation expense have not been reflected within the identifiable assets line of the Property/Casualty or Life Insurance segments above. Since the Moving and Storage and Real Estate operations are not reported on a one quarter lag, the assets have been removed from the Real Estate industry segment identifiable assets and are reflected as an adjustment and elimination within the above table for the inclusion within the consolidated company.

8. SUBSEQUENT EVENTS

On October 15, 2002 the Company failed to make a $100 million principal payment and a $3.6 million interest payment due to the Series 1997-C Bond Backed, Asset Trust. On that date, the Company also failed to pay $26.5 million in the aggregate to Citibank and Bank of America in connection with the Series 1997-C bonds. This expense will be recognized in the third fiscal quarter.

As a result of the foregoing, the Company is in default with respect to its other credit arrangements which contain cross-default provisions, including its 3-Year Credit Agreement dated June 28, 2002 (the “Credit Agreement”). In addition to the cross-default under the Credit Agreement, the Company is also in default under that agreement as a result of its failure to obtain incremental net cash proceeds and/or availability from additional financings in the aggregate amount of at least $150.0 million prior to October 15, 2002. The total amount of obligations currently in default (either directly or as a result of a cross-default) is approximately $1,175.4 million.

On November 11, 2002, AMERCO announced that it will not be making the dividend payment to the holders of its Series A 8 1/2% preferred stock due December 1, 2002.

9. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

During the quarter and six months ended September 30, 2002, the Company purchased $396,000 and $1.22 million, respectively of printing from Form Builders, Inc. Mark V. Shoen, his daughter and Edward J. Shoen’s sons are major stockholders of Form Builders, Inc.

10. AMERCO AND CONSOLIDATED SUBSIDIARIES ADDITIONAL INFORMATION

AMERCO AND CONSOLIDATED SUBSIDIARIES

Additional Information

Consolidating Balance Sheet

September 30, 2002


						AMERCO											ADJUST&
			U-Haul			Real Estate			AMERCO			Oxford			RepWest		ELIMIN			CONSOLIDATED

ASSETS




Cash			$	19,477			510			10,422			47,322			5,789		—			83,520




Receivables — Trade				33,171			4,336			16			33,162			233,827		—			304,512




Receivables — Notes & Mortgages				1,302			3,949			—			—			—		—			5,251




Inventories				65,491			4			—			—			—		—			65,495




Prepaid Expenses				42,282			11			93			—			—		—			42,386




Investments, fixed maturities				—			—			—			581,199			313,096		—			894,295




Investments, other				259,675			94,658			10,000			169,775			88,243		(49,500	)		572,851




DAC*				—			—			—			91,585			13,318		—			104,903




Investment in Subsidiary				—			—			1,173,140								(1,173,140	)		—




Other Assets (incl Trust Funds)				(30,274	)		5,026			39,823			1,606			5,181		—			10,174




Deferred tax asset				—			—			—			—			11,457		(11,457	)		—




Due from affiliates				—			—			740,541			(11,307	)		115,951		(845,185	)		—




Property, Plant, & Equipment




	Land			18,390			139,794			—			—			—		—			158,184




	Buildings & improvements			127,446			588,900			—			—			—		—			716,346




	Furniture & Equipment			271,287			18,022			396			—			—		—			289,705




	Rental Trailers & GRI			176,299			—			—			—			—		—			176,299




	Rental Trucks			1,119,666			—			—			—			—		—			1,119,666

				1,713,088			746,716			396			—			—		—			2,460,200
	Less accumulated depreciation			(957,979	)		(250,679	)		(308	)		—			—		—			(1,208,966	)

		Total PPE		755,109			496,037			88			—			—		—			1,251,234




TOTAL ASSETS			$	1,146,233			604,531			1,974,123			913,342			786,862		(488,122	)		3,334,621

* Deferred Policy Acquisition Cost

10. AMERCO AND CONSOLIDATED SUBSIDIARIES ADDITIONAL INFORMATION continued

AMERCO AND CONSOLIDATED SUBSIDIARIES

Additional Information

Consolidating Balance Sheet

September 30, 2002


					AMERCO										ADJUST&
		U-Haul			Real Estate		AMERCO			Oxford			RepWest		ELIMIN			CONSOLIDATED

LIABILITIES




Accounts payable & accrued liabilities		$	138,163			2,732		197,684			(1,142	)		—		(153,568	)		79,344




Notes & Loans			14,790			193		933,026			—			—		(39,500	)		908,509




Policy liabilities & accruals			—			—		—			178,415			524,889		—			703,304




Liabilities from premium deposits			—			—		—			610,248			—		—			610,248




Cash overdraft			26,861			—		—			—			—		—			26,861




	and Other liabilities		—			—		—			9,691			52,081		—			61,772




Due to affiliates			61,791			299,188		—			—			—		(360,979	)		—




Deferred credits			23,639			996		(9	)		—			—		—			24,626




Deferred income taxes			243,916			90,630		207,869			3,052			—		(362,834	)		182,633

			509,160			393,739		1,234,045			800,264			576,970		(916,881	)		2,597,297




STOCKHOLDERS EQUITY




Common stock			540			1		10,563			2,500			3,300		(6,341	)		10,563




Additional paid in capital			130,465			147,481		401,130			15,168			67,175		(360,289	)		401,130




AOCI — Foreign currency translation			(43,185	)		—		(43,185	)		—			—		—			(43,185	)




AOCI — Net unreal gain (loss)						—		(2,739	)		(9,483	)		6,744		2,739			(2,739	)




AOCI — Cash Flow Hedge			—			—		(2,494	)		—			—		—			(2,494	)




Retained earnings			563,131			63,310		806,085			104,893			132,673		(852,883	)		806,085

			650,951			210,792		1,158,236			113,078			209,892		(1,173,589	)		1,169,360




Less:




	Treasury shares		—			—		(418,178	)		—			—		—			(418,178	)




	Loan-leveraged ESOP		(13,878	)		—		20			—			—		—			(13,858	)

	TOTAL SHAREHOLDER EQUITY		637,073			210,792		740,078			113,078			209,892		(322,970	)		737,324

TOTAL LIABILITIES & SHAREHOLDER EQUITY		$	1,146,233			604,531		1,974,123			913,342			786,862		(2,090,470	)		3,334,621

10. AMERCO AND CONSOLIDATED SUBSIDIARIES ADDITIONAL INFORMATION, continued

AMERCO AND CONSOLIDATED SUBSIDIARIES

Additional Information

Consolidating Statement of Earnings

September 30, 2002


						AMERCO												ADJUST&
			U-Haul			Real Estate			AMERCO			Oxford			RepWest			ELIMIN			CONSOLIDATED

INCOME STATEMENT




Rental & other revenue			$	711,494			29,709			—			—			—			(30,345	)		710,858




Net sales				102,673			35			—						—			—			102,708




Equity in earnings of sub				—			—			134,849			—			—			(134,849	)		—




Premiums				—			—			0			80,693			86,319			(3,996	)		163,016




Net investment & interest income				15,963			4,984			10,214			7,773			15,257			(11,644	)		42,547

	Total Revenues			830,130			34,728			145,063			88,466			101,576			(180,835	)		1,019,128




Costs & expenses:




	Operating expense			503,428			(1,884	)		5,134			19,849			12,647			(36,786	)		502,388




	Cost of sales			53,065			16			—			—			—			—			53,081




	Benefits & Losses			—			—			—			60,488			79,945			—			140,433




	Amortization of DAC*			—			—			—			10,121			11,521			—			21,642




	Lease expense			80,037			4,732			463			—			—			—			85,232




	Depreciation Net			50,843			4,263			8			—			—			—			55,114

	Total Costs & Expenses			687,373			7,127			5,606			90,458			104,113			(36,786	)		857,890

Earnings from operations				142,757			27,601			139,458			(1,992	)		(2,537	)		(144,049	)		161,238




	Interest Expense			6,125			8,797			26,406			—			—			(9,199	)		32,132




Pretax earnings from continuing operations				136,632			18,804			113,049			(1,992	)		(2,537	)		(134,850	)		129,106

	Income tax benefit (expense)			(47,964	)		(6,581	)		(30,960	)		699			960			38,590			(45,256	)




Earnings from continuing operations				88,668			12,223			82,089			(1,293	)		(1,577	)		(96,260	)		83,850

		Net earnings		88,668			12,223			83,089			(1,293	)		(1,577	)		(96,260	)		83,850




Beginning Retained Earnings				474,463			51,087			719,354			106,186			134,250			(756,623	)		728,717




Dividends				—			—			(6,482	)		—			—			—			(6,482	)

Ending Retained Earnings			$	563,131			63,310			794,961			104,893			132,673			(852,883	)		806,085

* Deferred Policy Acquisition Cost

10. AMERCO AND CONSOLIDATED SUBSIDIARIES ADDITIONAL INFORMATION continued

AMERCO AND CONSOLIDATED SUBSIDIARIES

Additional Information

Consolidating Statement of Cash Flows

September 30, 2002


									Amerco									ADJUST &
			AMERCO			U-Haul			Real Estate			Oxford			RepWest			ELIM			Consolidated

OPERATING ACTIVITIES




Net income (loss)			$	82,089			88,668			12,223			(1,293	)		(1,577	)		(96,260	)		83,850




Depreciation & Amortization				(66	)		46,002			4,345			10,051			12,038			—			72,370




Provision for bad debt				—			1,105			—			—			—			—			1,105




Earnings in subsidiaries				(134,849	)					—			—			—			134,849			0




(Gain) loss on sale of PPE				—			3,674			(24	)		—			—			—			3,650




(Gain) loss-sale of investments				—			—			—			4,336			(479	)		—			3,857




		Total Changes-policy liabilities & accruals		—			—			—			635			(35,995	)		—			(35,360	)




Additions to DAC				—			—			—			(15,774	)		(8,493	)		—			(24,267	)




Net change in operating assets & liabilities				174,162			(78,843	)		(8,378	)		(26,689	)		(15,391	)		(38,589	)		6,272

Net cash provided (used) by operations				121,336			60,605			8,166			(28,734	)		(49,897	)					111,477




INVESTING ACTIVITIES




	Purchases of PPE			—			(111,445	)		(11,473	)		—			—			—			(122,918	)




	Purchases of Fixed Maturities			—			—			—			(134,993	)		—			—			(134,993	)




	Purchases of Other Asset Investment			—			—			—			(17,407	)					17,500			93




	Purchases of Real Estate			—			—			—			(21,759	)		(7,632	)					(29,391	)




	Purchases of Mortgage Loans			—			—			—			(22,000	)					22,000			0




	Proceeds sale of PPE			—			42,685			3,345			—			—			—			46,030




	Proceeds sale of Fixed Maturities			—			—			—			157,182			45,073			—			202,255




	Proceeds sale of Real Estate			—			—			—						399			—			399




	Proceeds sale of Preferred stock			—			—			—			2,578			—			—			2,578




	Proceeds sale of Mortgage Loans			—			—			—			9,889			561			—			10,450




Changes in Other Investments				—			5,309			587			12,412			11,373			—			29,681

Net cash provided (used) by investing activities			$	0			(63,451	)		(7,541	)		(14,098	)		49,774			39,500			4,184


								Amerco
		AMERCO			U-Haul			Real Estate			Oxford			RepWest			ELIM			Consolidated

FINANCING ACTIVITIES




Net changes in ST borrowings		$	5,000			—			—						—			—			(12,500	)




Principal payments on notes			(150,000	)		(3	)		(11	)					—			—			(150,014	)




Proceeds from notes			44,009			—			0									(39,500	)		22,009




Loan to leveraged ESOP			—			—			—						—			—			—




Paydown on ESOP			—			293			—						—			—			293




Dividends paid			(6,482	)		0			—						—			—			(6,482	)




Net Change — Cash Overdraft						(7,768	)		—						—			—			(7,768	)




Treasury Stock Purchase			(1,407	)					—						—			—			(1,407	)




Investment contract deposits			—			—			—			89,083			—			—			89,083




Investment contract withdrawals			—			—			—			(51,262	)		—			—			(51,262	)




Net cash provided (used)			—			—			—						—			—




	by financing activities		(110,985	)		(7,501	)		(691	)		37,821						(39,500	)		(120,856	)




Net cash provided (used)			10,351			(10,347	)		(66	)		(5,011	)		(123	)					(5,196	)




Cash at beginning of period			71			29,823			576			52,333			5,912						88,715

Cash at end of period		$	10,422			19,476			510			47,322			5,789			—			83,520

AMERCO AND CONSOLIDATED SUBSIDIARIES
Additional Information
Consolidating Balance Sheet
March 31, 2002


					AMERCO
			U-Haul		Real Estate		AMERCO		Oxford			RepWest		ELIM			CONS F/S		SACH		ELIM			CONSOLIDATED

ASSETS
Cash				29,823		576		71		61,280			5,912		—			97,662		10		—			97,672
Receivables — Trade				17,970		5,020		7		26,689			230,228		—			279,914		—		—			279,914
Receivables — Notes & Mortgages				28,688		686		—		—			—		—			29,374		—		(13,469	)		15,905
Inventories				72,323		4		—		—			—		—			72,327		4,192		—			76,519
Prepaid Expenses				44,461		11		112		—			—		—			44,584		—		(13,513	)		31,071
Investments, fixed maturies				—		—		—		632,306			362,569		—			994,875		—		—			994,875
Investments, other				264,984		95,245		10,000		122,260			95,918		(24,855	)		563,552		30,090		(393,206	)		200,436
Deferred pol acq costs				—		—		—		85,099			16,209		—			101,308		—		—			101,308
Investment in Subsidiary				—		—		1,121,630		—			—		(1,121,630	)		—		—		—			—
Other Assets (incd Trust Funds)				3,306		3,715		4,873		1,737			6,997		14,530			35,158		25,695		—			60,853
Deferred tax asset				—		—		—		—			12,048		(12,048	)		—		—		—			—
Due from affiliates				—		—		890,880		(10,660	)		89,939		(970,159	)		—		—		—			—
Property, Plant, & Equipment
	Land			18,358		142,540		—		—			—		—			160,898		264,409		—			425,307
	Buildings & improvements			124,059		579,782		—		—			—		—			703,841		713,107		(255,030	)		1,161,918
	Furniture & Equipment			270,071		18,241		395		—			—		—			288,707		1,763		—			290,470
	Rental Trailers & GRI			176,785		—		—		—			—		—			176,785		—		—			176,785
	Rental Trucks			1,071,604		—		—		—			—		—			1,071,604		—		—			1,071,604

				1,660,877		740,563		395		—			—		—			2,401,835		979,279		(255,030	)		3,126,084
	Less accum depr			923,685		248,525		299		—			—		—			1,172,509		37,541		(1,132	)		(1,211,182	)

		Total PPE		737,192		492,038		96		—			—		—			1,229,326		941,738		(256,162	)		1,914,902
Non-current deferred taxes				—		—		—		—			—		—			—		—		—			—
TOTAL ASSETS				1,198,747		597,295		2,027,669		918,711			819,820		(2,114,162	)		3,448,080		1,001,725		(676,350	)		3,773,455

AMERCO AND CONSOLIDATED SUBSIDIARIES
Additional Information
Consolidating Balance Sheet
March 31, 2002


					AMERCO
		U-Haul			Real Estate		AMERCO			Oxford		RepWest		ELIM			CONS F/S			SACH			ELIM			CONSOLIDATED

LIABILITIES
Accounts payable & accrued liabilities			92,858			7,848		124,951			7,873		—		(128,891	)		104,639			54,953			(13,467	)		146,125
Notes & Loans			14,793			204		1,034,018			—		—		—			1,049,015			957,378			(399,618	)		1,606,775
Fair Market Value – SWAP			—			—		—			—		—		—			—
Policy liabilities & accruals			—			—		—			177,751		551,592		—			729,343									729,343
Liabilities from premium deposits			—			—		—			572,793		—		—			572,793									572,793
Cash Overdraft			34,629			—		—			—		—		—			34,629									34,629
Other policyholders funds			—			—		—			19,845		54,203		—			74,048									74,048
	and Other liabilities		—			—		—			—		—		—			—
Due to affiliates			217,925			299,232		0			—		—		(517,157	)		—
Deferred credits			21,067			996		386			—		—		—			22,449						(15,089	)		7,360
Deferred income taxes			241,757			90,580		181,914			11,642		—		(333,951	)		191,942						(88,667	)		103,275
Minority Interest																					8,913			(8,913	)		0

STOCKHOLDERS EQUITY			—			—		—			—		—		—			—
Common stock			540			1		10,563			2,500		3,330		(6,341	)		10,563									10,563
Additional paid in capital			130,465			147,347		405,794			15,174		71,508		(364,494	)		405,794			28,281			(166,363	)		267,712
AOCI — Foreign currency translation			(39,804	)		—		(39,804	)		—		—		39,804			(39,804	)								(39,804	)
AOCI — Net unreal gains (loss) invest-						—		9,914			4,947		4,967		(9,914	)		9,914			(2,385	)		2,385			9,914
AOCI — Cash Flow Hedge			—			—		(2,494	)		—		—		—			(2,494	)								(2,494	)
Retained earnings			498,689			51,087		719,178			106,186		134,250		(793,218	)		716,172			(45,415	)		45,858			716,615

Less:
	Treasury shares		—			—		(416,771	)		—		—		—			(416,771	)					(32,476	)		(449,247	)
	Loan-leveraged ESOP		(14,172	)		—		20			—		—		—			(14,152	)								(14,152	)

	TOTAL S/H EQUITY		575,718			198,435		686,400			128,807		214,025		(1,134,163	)		669,222			(19,519	)		(150,596	)		499,107

TOTAL LIAB & S/H EQUITY			1,198,747			597,295		2,027,669			918,711		819,820		(2,114,162	)		3,448,080			1,001,725			(676,350	)		3,773,455

AMERCO AND CONSOLIDATED SUBSIDIARIES
Additional Information
Consolidating Statement of Earnings
March 31, 2002


						AMERCO
			U-Haul			Real Estate			AMERCO			Oxford			RepWest			ELIM			CONS F/S			SACH			ELIM			CONSOLIDATED

INCOME STATEMENT
Rental & other revenue				1,243,351			78,649			—			—			—			(74,935	)		1,247,065			111,116			(14,159	)		1,344,022
Net sales				198,312			55			—												198,367			24,448						222,815
Equity in earnings of sub				—			—			63,694			—			—			(63,694	)		0									0
Premiums				—			—			—			160,052			274,042			(501	)		433,593									433,593
Net investment & interest income				24,186			8,745			61,420			26,980			27,614			(75,403	)		73,542						(5,963	)		67,579

	Total Revenues			1,465,849			87,449			125,114			187,032			301,656			(214,533	)		1,952,567			135,564			(20,122	)		2,068,009

Costs & expenses:
	Operating expense			1,001,810			5,962			7,139			36,992			78,633			(75,436	)		1,055,100			62,225			(7,881	)		1,109,444
	Cost of Sales			111,515			24			—			—			—			—			111,539			11,321						122,860
	Benefits			—			—			—			120,407			269,115			—			389,522									389,522
	Amort of Def Pol Acq Cost			—			—			—			18,583			22,091			—			40,674									40,674
	Lease expense			170,839			11,221			919			—			—			—			182,979						(7,478	)		175,501
	Depreciation/G(L) on sale			97,325			(2,039	)		(500	)		—			—			—			94,786			14,219			(322	)		108,683

	Total Costs & Expenses			1,381,489			15,168			7,558			175,982			369,839			(75,436	)		1,874,600			87,765			(15,681	)		1,946,684

Earnings from operations				84,360			72,281			117,556			11,050			(68,183	)		(139,097	)		77,967			47,799			(4,441	)		121,325

	Interest Expense			11,675			34,299			90,644			—			—			(60,548	)		76,070			61,094			(20,818	)		116,346

Pretax earnings from cont oper				72,685			37,982			26,912			11,050			(68,183	)		(78,549	)		1,897			(13,295	)		16,377			4,979
	Income tax benefit (expense)			(25,728	)		(13,294	)		(25,717	)		(3,847	)		23,802			44,086			(698	)		(1,560	)		0			(2,258	)

Earnings from cont operations				46,957			24,688			1,195			7,203			(44,381	)		(34,463	)		1,199			(14,855	)		16,377			2,721

		Net earnings		46,957			24,688			1,195			7,203			(44,381	)		(34,463	)		1,199			(14,855	)		16,377			2,721

AMERCO AND CONSOLIDATED SUBSIDIARIES
Additional Information
Consolidating Financial Statements
March 31, 2002


											Amerco															SAC			Total						Adjust
		AMERCO			U-Haul			Real Estate			Total			Oxford			RepWest			ELIM			CONS			Losses			CONS			SAC			ELIM			CONS

OPERATING ACTIVITIES
Net income (loss)			10,558			52,453			24,688			87,699			7,203			(44,381	)		(39,963	)		10,558			(9,359	)		1,199			(14,855	)		16,377			2,721
Depreciation & Amortization			1,015			102,872			10,822			114,709			18,758			23,616						157,083						157,083			10,822						169,440
Provision for bad debt			—			4,729			—			4,729			—			—						4,729						4,729									4,727
Dist Of Treas Stk to ESOP						—						—			—			—						—						—
Earnings in subs			(63,694	)		—						(63,694	)								63,694			—						—									0
(Gain) loss on sale of PPE			(559	)		(5,896	)		(12,378	)		(18,833	)											(18,833	)					(18,833	)								(18,321	)
(Gain) loss-sale of investments															(1,302	)		4,143						2,841						2,841									2,841
Cumulative Effect Acctg Chg			—			—			—			—												—						—
Changes in policy liab & accrls																								—						—
	Total Chngs-policy liab & accrls														(5,153	)		12,735						7,582						7,582									7,582
Additions to DAC															(22,612	)		(16,640	)					(39,252	)					(39,252	)								(39,025	)
Net change in oper assets & liab			142,547			3,747			(251,008	)		(104,714	)		(34	)		(34,355	)		154,884			15,781						15,781			(98,803	)		12,743			(83,961	)

Net cash provided (used) by operations			89,867			157,905			(227,876	)		19,896			(3,140	)		(54,882	)		178,615			140,489			(9,359	)		131,130			(102,836	)		29,120			46,004
INVESTING ACTIVITIES																																							0
Purchases of investments
	Purchases of Common stock														(418	)								(418	)					(418	)
	Purchases of PPE		(7	)		(208,161	)		(43,018	)		(251,186	)											(251,186	)					(251,186	)		(259,610	)		303,534			(177,537	)
	Purchases of Fixed Maturities														(248,671	)		(8,888	)					(257,559	)					(257,559	)								(258,492	)
	Purchases of Preferred Stock														(2,072	)		—						(2,072	)					(2,072	)								(2,072	)
	Purchases of Other Asset Investment											—			(2,259	)		—						(2,259	)					(2,259	)								(2,259	)
	Purchases of Real Estate														(35	)		—						(35	)					(35	)								(36	)
	Purchases of Mortgage Loans		—			—			(561	)		(561	)		(790	)		—						(1,351	)					(1,351	)								(1,376	)
	Acquisition of Subsidiary																	—						—						—
	Proceeds – sale of investments														—			—						—						—
	Proceeds sale of PPE		94,265			146,882			268,523			509,670			—			—			(161,771	)		347,899						347,899			45,227			(303,534	)		89,371
	Proceeds – sale of Common Stock																							—						—
	Proceeds sale of Fixed Maturities														168,984			64,732						233,716						233,716									222,952
	Proceeds sale of Real Estate		—			—			—			—			1,038			297						1,335						1,335									1,334
	Proceeds sale of Preferred stock											—			4,400			—						4,400						4,400									4,400
	Proceeds sale of Mortgage Loans					268			510			778			17,910			2			—			18,690						18,690									17,104
Changes in Other Investments			—			(136,683	)		2,041			(134,642	)		(8,575	)		1,588						(141,629	)		9,359			(132,270	)					103,664			(4,014	)

Net cash provided (used) by investing activities			94,258			(197,694	)		227,495			124,059			(70,488	)		57,731			(161,771	)		(50,469	)		9,359			(41,110	)		(214,383	)		103,664			(110,625	)

Amerco and Consolidated Subsidiaries
Consolidating Financial Statements
For period ending March 31, 2002


										Amerco														SAC		Total						ADJUST.
	AMERCO			U-Haul			Real Estate			Total			Oxford			RepWest		ELIM			CONS			Losses		CONS			SAC			ELIM			CONS

FINANCING ACTIVITIES
Net changes in ST borrowings		(23,295	)		(5,564	)					(28,859	)										(28,859	)		—		(28,859	)								(2,500	)
Principal payments on notes		(102,513	)		—			(31	)		(102,544	)		—			—		—			(102,544	)		—		(102,544	)		317,219			92,622			288,102
Proceeds from notes		—			—			—			—			—			—		—			—			—		—									(10,182	)
Debt Issuance Costs		(390	)		—			—			(390	)		—			—		—			(390	)		—		(390	)
Loan to leveraged ESOP		—			—			—			—			—			—		—			—			—		—
Principle payment on notes																																	(225,406	)		(225,406	)
Paydown on ESOP		—			1,021			—			1,021			—			—		—			1,021			—		1,021									1,021
Dividends paid		(12,963	)		—			—			(12,963	)		—			—		—			(12,963	)		—		(12,963	)								(12,961	)
Net Change – Cash Overdraft		—			8,145			—			8,145			—			—		—			8,145			—		8,145									8,145
Treasury Stock Purchase		(10,154	)		—			—			(10,154	)		—			—		—			—			—		(10,154	)								(37,322	)
Dividends from subs		—			—			—			—			7,501			—		(7,501	)		—			—		—
Investment contract deposits		—			—			—			—			150,432			—		—			150,432			—		150,432									150,432
Investment contract withdrawals		—			—			—			—			(99,845	)		—		—			(99,845	)		—		(99,845	)		(99,845	)					(99,845	)

Net cash provided (used) by financing activities		(149,315	)		3,602			(31	)		(145,744	)		58,088			—		(7,501	)		(95,157	)		—		(95,157	)		217,374			(232,629	)		(140,206	)

Net cash provided (used)		34,810			(36,187	)		(412	)		(1,789	)		(15,540	)		2,849		9,343			(5,137	)		—		(5,137	)		(99,845	)		(99,845	)		(204,827	)
Cash at beg of period		114			21,814			988			22,916			26,799			3,063		—			52,778			—		52,778			10			—			52,788

Cash at end of period		24,301			(14,373	)		576			21,127			11,259			5,912		9,343			47,641			—		47,641			97,672			97,672			97,672

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. We may make additional written or oral forward-looking statements from time to time in filings with the Securities and Exchange Commission or otherwise. We believe such forward-looking statements are within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, projections of revenues, income or loss, estimates of capital expenditures, our plans and intentions regarding the recapitalization of our balance sheet and the payment of dividends arrearages, plans for future operations, products or services, financing needs and plans, our perceptions of our legal positions and anticipated outcomes of pending litigation against us, and liquidity as well as assumptions relating to the foregoing. The words “believe”, “expect”, “anticipate”, “estimate”, “project” and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by or underlying the forward-looking statements. Some of the important factors that could cause our actual results, performance or financial condition to differ materially from our expectations are: fluctuations in our costs to maintain and update our fleet and facilities; our inability to refinance our debt; our ability to successfully recapitalize our balance sheet and cure existing defaults of our debt agreements, our ability to continue as a going concern, changes in government regulations, particularly environmental regulations; our credit ratings; the availability of credit; changes in demand for our products; changes in the general domestic economy; the degree and nature of our competition; the resolution of pending litigation against the company; changes in accounting standards; and other factors described in this Quarterly Report on Form 10-Q or the other documents we file with the Securities and Exchange Commission. The above factors, the following disclosures, as well as other statements in this report and in the Notes to Consolidated Financial Statements, could contribute to or cause such differences, or could cause AMERCO’s stock and note prices to fluctuate dramatically.

GENERAL

Information on industry segments is incorporated by reference from — Notes 1, 3 and 8 of “Notes to Condensed Consolidated Financial Statements”. The notes discuss the principles of consolidation, summarized consolidated financial information and industry segment and geographical area data, respectively. In consolidation, all intersegment premiums are eliminated and the benefits, losses and expenses are retained by the insurance companies.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management’s discussion and analysis of financial condition and results of operations are based upon the consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of our financial statements requires the use of estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, estimates are reevaluated, including those related to areas that require a significant level of judgment or are otherwise subject to an inherent degree of uncertainty. These areas include allowances for doubtful accounts, revenue earning vehicles and buildings, self-insured liabilities, income taxes and commitments and contingencies. Our estimates are based on historical experience, observance of trends in particular areas, information and/or valuations available from outside sources and on various other assumptions that we believe to be reasonable under the circumstances and which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts may differ from these estimates under different assumptions and conditions.

Accounting policies are considered critical when they are significant and involve difficult, subjective or complex judgments or estimates. We considered the following to be critical accounting policies:

Principles of consolidation — The consolidated financial statements include the accounts of AMERCO and its wholly-owned subsidiaries and SAC Holdings and the wholly-owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. AMERCO does not have an equity ownership interest in SAC Holdings or any of SAC Holdings’ subsidiaries, except for investments made by Repwest and Oxford in a SAC Holdings-controlled limited partnership which holds Canadian self-storage properties. SAC Holdings are not legal subsidiaries of AMERCO. AMERCO is not liable for the debts of SAC Holding and there are no default provisions in AMERCO indebtedness that cross-default to SAC Holding’s obligations.

Revenue earning vehicles and buildings — Depreciation is recognized in amounts expected to result in the recovery of estimated residual values upon disposal (i.e. no gains or losses). In determining the depreciation rate, we review historical disposal experience and holding periods, and trends in the market. Due to longer holding periods on trucks and the resulting increased possibility of changes in the economic environment and market conditions, these estimates are subject to a greater degree of risk.

Long-lived assets and intangible assets — We review carrying value whenever events or circumstances indicate the carrying values may not be recoverable through projected undiscounted future cash flows. The events could include significant underperformance relative to expected, historical or projected future operating results, significant changes in the manner of using the assets, overall business strategy, significant negative industry or economic trends and non-compliance with significant debt agreements.

Investments — In determining if and when a decline in market value below amortized cost is other than temporary, we review quoted market prices, dealer quotes or a discounted cash flow analysis. Permanent declines in value are recognized in the current period operating results to the extent of the decline.

Insurance Revenue and Expense Recognition — Premiums are recognized as revenue as earned over the terms of the respective policies. Benefits and expenses are matched with recognized premiums to result in recognition over the life of the contracts. This match is accomplished by recording a provision for future policy benefits and unpaid claims and claim adjustment expenses and by amortizing deferred policy acquisition costs. Charges related to services to be performed are deferred until earned. The amounts received in excess of premiums and fees are included in other policyholder funds in the consolidated balance sheets.

Unearned premiums represent the portion of premiums written which relates to the unexpired term of policies. Liabilities for health and disability and other policy claims and benefits payable represent estimates of payments to be made on insurance claims for reported losses and estimates of losses incurred but not yet reported. These estimates are based on past claims experience and current claim trends as well as social and economic conditions such as changes in legal theories and inflation. Due to the nature of underlying risks and the high degree of uncertainty associated with the determination of the liability for future policy benefits and claims, the amounts to be ultimately paid to settle liabilities cannot be precisely determined and may vary significantly from the estimated liability.

Acquisition costs related to insurance contracts have been deferred to accomplish matching against future premium revenue. The costs are charged to current earnings to the extent it is determined that future premiums are not adequate to cover amounts deferred.

RESULTS OF OPERATIONS

SIX MONTHS ENDED SEPTEMBER 30, 2002 VERSUS SIX MONTHS ENDED SEPTEMBER 30, 2001

U-HAUL Moving and Storage Operations

Revenues consist of rental revenues and net sales. Total rental revenue are $711.5 million and $699.8 million for the six months ended September 30, 2002 and 2001, respectively.

Net sales revenues were $102.6 million and $118.2 million for the six months ended September 30, 2002 and 2001, respectively. The decrease reflects the sale of stores to SAC Holdings.

Cost of sales are $53.1 million and $65.1 million for the six months ended September 30, 2002 and 2001, respectively. The decrease is due to the sale of stores to SAC Holdings.

Operating expenses before intercompany eliminations were $503.4 million and $518.1 million for the six months ended September 30, 2002 and 2001, respectively. Operating expenses declined due to the sale of stores to SAC Holdings.

Lease expense was $80.0 million and $83.2 million for the six months ended September 30, 2002 and 2001, respectively. This decrease reflects a decline in the number of leased rental trucks.

Net depreciation expense was $50.8 million and $47.3 million for the six months ended September 30, 2002 and 2001, respectively.

Operating profit before intercompany eliminations was $136.6 million and $112.2 million for the six months ended September 30, 2002 and 2001, respectively. The increase is due to improved operations.

SAC Moving and Storage Operations

Revenues consist of rental revenues and net sales. Total rental revenue is $112.3 million and $65.3 million for the six months ended September 30, 2002 and 2001, respectively. Storage revenues increased $19.16 million due to increased facility capacity through the acquisition of new locations from U-Haul and increased storage rates. Sales increased $15 million due to the addition of stores.

Net sales revenues were $27.9 million and $12.3 million for the six months ended September 30, 2002 and 2001, respectively. This reflects the acquisition of additional stores.

Cost of sales are $12.4 million and $5.9 million for the six months ended Septemeber 30, 2002 and 2001, respectively.

Operating expenses before intercompany eliminations were $62.7 million and $34.6 million for the six months ended September 30, 2002 and 2001, respectively. The increase is due to more stores in operation.

Net depreciation expense was $9.8 million and $4.1 million for the six months ended September 30, 2002 and 2001, respectively. The increase is due to the addition of stores.

Operating profits were $39.9 million and $25.7 million for the six months ended September 30, 2002 and 2001, respectively.

AMERCO’s Real Estate Operations

Rental revenue before intercompany eliminations was $29.7 million and $34.9 million for the six months ended September 30, 2002 and 2001, respectively. Intercompany revenue was $28.3 and $33.6 million for the six months ended September 30, 2002 and 2001, respectively.

Net investment and interest income was $5.0 million and $4.8 million for the six months ended September 30, 2002 and 2001, respectively.

Lease expense was $4.7 million and $6.5 for the six months ended September 30, 2002 and 2001, respectively.

Net depreciation expense was $4.3 million and $(6.0) million for the six month ended September 30, 2002 and 2001, respectively.

Gains on asset sales during fiscal year 2001 resulted in the negative depreciation expense.

Operating profit before intercompany eliminations was $27.6 million and $42.4 million for the six months ended September 30, 2002 and 2001, respectively.

Property and Casualty

RepWest’s premiums were $86.3 million and $128.3 million for the six months ended June 30, 2002 and 2001, respectively. General agency premiums were $34.2 million and $62.8 million for the six months ended June 30, 2002 and 2001, respectively. The decrease from 2001 to 2002 was the result of the elimination of RepWest’s direct Non-Standard Auto and Homeowners business, as well as additional quota share reinsurance on transportation business. Assumed treaty reinsurance premium was $20.4 million and $31.7 million for the six months ended June 30,2002 and 2001, respectively. Rental industry premiums were $18.7 million and $17.8 million for the six months ended June 30, 2002 and 2001, respectively.

Net investment income was $15.3 million and $15.9 million for the six months ended June 30, 2002 and 2001, respectively. The decrease is attributable to lower annual average invested assets.

Benefits and losses incurred were $79.9 million and $122.6 million for the six months ended June 30, 2002 and 2001, respectively. This decrease is attributable to lowered premium writings resulting in less exposure primarily in the non-standard auto and home lines.

The amortization of deferred acquisition costs (DAC) was $11.5 million and $11.6 million for the six months ended June 30, 2002 and 2001, respectively.

Operating expenses were $12.6 million and $28.8 million for the six months ended June 30, 2002 and 2001, respectively. The decrease is a result of decreased commissions on decreased premium writings as well as decreased general and administrative expenses.

Operating loss before intercompany eliminations was $2.5 million and $18.9 million for the six

months ended June 30, 2002 and 2001, respectively. The decrease is the result of decreased expenses and the cancellation of multiple unprofitable lines of business.

Life Insurance

Net premiums were $80.7 million and $77.5 million for the six months ended June 30, 2002 and 2001, respectively. Oxford increased Medicare supplement premiums by $5.1 million through direct writings and rate management activity. Whole life sales increased $0.6 million from the same period in 2001. Credit insurance premiums decreased $1.7 million for the six months from the previous year. Other business segments had premium decreases totaling $0.8 million. Oxford experienced a ratings decline that will result in a reduction in annuity sales going forward.

Net investment income before intercompany eliminations decreased $5.4 million to $7.8 million due to realized losses on fixed maturities and write downs of fixed maturities whose decline in value is deemed to be other than a temporary decline in value.

Benefits incurred were $60.5 million and $58.1 million for the six months ended June 30, 2002 and 2001, respectively. Medicare supplement incurred benefits increased $3.1 million from a larger population. Credit life and disability benefits increased $0.3 million due to increased frequency. Other health segments had benefits decreases totaling $1.0 million.

Amortization of deferred acquisition costs (DAC) and the value of business acquired (VOBA) was $10.1 million and $9.3 million for the six months ended June 30, 2002 and 2001, respectively. The increase is from the Medicare supplement and annuity segments.

Operating expenses were $19.8 million and $19.4 million for the six months ended June 30, 2002 and 2001, respectively. General and administrative expenses net of fees collected increased $0.4 million.

Operating profit/(loss) before intercompany eliminations was $(2.0) million and $3.9 million for the six months ended June 30, 2002 and 2001, respectively.

QUARTER ENDED SEPTEMBER 30, 2002 VERSUS QUARTER ENDED SEPTEMBER 30, 2001

U-HAUL Moving and Storage Operations

Revenues consist of rental revenues and net sales. Total rental revenue was $370.5 million and $365.8 million for the quarters ended September 30, 2002 and 2001, respectively. Storage revenues decreased $3.3 million due to sale of stores to SAC Holdings. Improved pricing contributed to the increase.

Net sales revenues were $49.1 million and $55.8 million for the quarters ended September 30, 2002 and 2001, respectively. The decline in sales is the result of fewer stores operating during fiscal year 2002.

Cost of sales was $25.9 million and $31.3 million for the quarters ended September 30, 2002 and 2001, respectively. The decrease is the result of a reduction in the number of stores in operation.

Operating expenses before intercompany eliminations were $262.7 million and $266.6 million for the quarters ended September 30, 2002 and 2001, respectively.

Lease expense was $41.4 million and $40.7 million for the quarters ended September 30, 2002 and 2001, respectively.

Net depreciation expense was $25.5 million and $20.3 million for the quarters ended September 30, 2002 and 2001, respectively.

Operating profit before intercompany eliminations was $69.1 million and $67.9 million for the quarters ended September 30, 2002 and 2001, respectively.

SAC Moving and Storage Operations

Revenues consist of rental revenues and net sales. Total rental revenue was $33.6 million and $22.7 million for the quarters ended September 30, 2002 and 2001, respectively. Storage revenues increased $11.0 million due to increased facility capacity through the acquisition of locations and increased storage rates.

Net sales revenues were $13.4 million and $5.9 million for the quarters ended September 30, 2002 and 2001, respectively. The increase is due to the increase in the number of stores in operation.

Cost of sales was $6.4 million and $3.3 million for the quarters ended September 30, 2002 and 2001, respectively. The increase is attributable to the increased sales volume.

Net depreciation expense was $5.2 million and $2.1 million for the quarters ended September 30, 2002 and 2001, respectively. Depreciation expense has increased as a result of the addition of storage properties.

Operating profit/(loss) was $144,000 and ($1.6 million) for the quarters ended September 30, 2002 and 2001, respectively.

AMERCO’s Real Estate Operations

Rental revenue before intercompany eliminations was $16.6 million and $19.9 million for the quarters ended September 30, 2002 and 2001, respectively. Intercompany revenue was $14.3 and $16.9 million for the quarters ended September 30, 2002 and 2001, respectively.

Net investment and interest income was $2.2 million and $2.9 million for the quarters ended September 30, 2002 and 2001, respectively. This decrease correlates to a reduction in Real Estate’s average note and mortgage receivables balance outstanding.

Lease expense was $2.7 million and $3.0 million for the quarters ended September 30, 2002 and 2001, respectively.

Net depreciation expense was $2.1 million and $3.2 million for the quarters ended September 30, 2002 and 2001, respectively. The decrease from 2001 to 2002 reflected a loss on the disposition of assets for 2001 of $0.6 million.

Operating profit before intercompany eliminations was $12.9 million and $27.6 million for the quarters ended September 30, 2002 and 2001, respectively.

Property and Casualty

RepWest’s premiums were $39.7 million and $66.1 million for the quarters ended June 30, 2002 and 2001, respectively. General agency premiums were $14.0 million and $33.2 million for the quarters ended June 30, 2002 and 2001, respectively. The decrease from 2001 to 2002 was the result of the cancellation of RepWest’s direct Non-Standard Auto and Homeowners business, as well as additional quota share reinsurance on transportation business. Assumed treaty reinsurance premium was $11.1 millions and $15.9 million for the quarters ended June 30, 2002 and 2001, respectively. Rental industry premiums were $9.5 million and $9.3 million for the quarters ended June 30, 2002 and 2001, respectively.

Net investment income was $7.7 million and $7.4 million for the quarters ended June 30, 2002 and 2001, respectively.

Benefits and losses incurred were $34.3 million and $62.4 million for the quarters ended June 30, 2002 and 2001, respectively. This decrease is attributable to lowered premium writings resulting in less exposure primarily in the non-standard auto and home lines.

The amortization of deferred acquisition costs (DAC) was $6.2 million and $6.6 million for the quarters ended June 30, 2002 and 2001, respectively.

Operating expenses were $6.6 million and $17.9 million for the quarters ended June 30, 2002 and 2001, respectively. The decrease is a result of decreased commissions on decreased premium writings as well as decreased general and administrative expenses.

Operating profit / (loss) before intercompany elimination was $0.3 million and $(13.3) million for the quarters ended June 30, 2002 and 2001, respectively. The increase is the result of decreased benefits and losses resulting from the cancellation of unprofitable lines of business, and decreases in general and administrative expense.

Life Insurance

Net premiums were $41.0 million and $37.9 million for the quarters ended June 30, 2002 and 2001, respectively. Oxford increased Medicare supplement premiums by $4.0 million through direct writings and rate management activity. Credit insurance premiums decreased $0.4 million for the quarter from the previous year. Other business segments had premium decreases totaling $0.5 million. Oxford experienced a ratings decline that will result in a reduction in annuity sales going forward.

Net investment income before intercompany eliminations decreased to $2.4 million from $7.0 million primarily due to the write-downs of bonds in the investment portfolio whose decline in value is deemed to be other than a temporary decline in value.

Benefits incurred were $29.7 million and $27.0 million for the quarters ended June 30, 2002 and 2001, respectively. Medicare supplement incurred benefits increased $2.9 million from a larger population. Credit life and disability benefits increased $0.7 million due to increased frequency. Other business segments had benefits decreases totaling $0.9 million.

Amortization of deferred acquisition costs (DAC) and the value of business acquired (VOBA) was $5.1 million and $4.5 million for the quarters ended June 30, 2002 and 2001, respectively. The increase is from the Medicare supplement and annuity segments.

Operating expenses were $11.5 million and $12.2 million for the quarters ended June 30, 2002 and 2001, respectively. Commissions have decreased $0.5 million from 2001 primarily due to the decreases in credit and major medical lines. General and administrative expenses net of fees collected decreased $0.2 million.

Operating profit/(loss) before intercompany eliminations was $(2.9) million and $1.2 million for the quarters ended June 30, 2002 and 2001, respectively. The decrease from 2001 is due to the write-downs of bonds whose decline in value is deemed other than temporary.

CONSOLIDATED GROUP

Interest Expense

Interest expense was $54.9 million and $52.5 million for the six months ended September 30, 2002 and 2001, respectively. The increase can be attributed to a higher debt level outstanding for SAC Holdings due to the acquisition of additional storage properties.

Interest expense of SAC Holdings on third party debt was $22.8 million and $16.3 million for the six months ended September 30, 2002 and 2001, respectively. AMERCO’s interest expense on third party debt was $32.1 and $40.9 million for the six months ended September 30, 2001 and 2002, respectively.

Earnings

As a result of the foregoing, pretax earnings were $126.2 million and $90.9 million for the six months ended September 30, 2002 and 2001, respectively. After providing for income taxes, net earnings were $81.1 million and $56.6 million for the six months ended September 30, 2002 and 2001, respectively.

LIQUIDITY AND CAPITAL RESOURCES

U-HAUL Moving and Storage Operations

Cash provided by operating activities was $60.6 million and $41.0 million for the quarters ended September 30, 2002 and 2001, respectively. The increase resulted primarily from more profitable operations.

SAC Moving and Storage Operations

SAC Holdings’ operations are funded by various mortgage loans and unsecured notes, with interest rates ranging from 7.5% to 13.0%. SAC does not utilize revolving lines of credit to finance its operations or acquisitions. Certain of SAC’s agreements contain restrictive covenants including coverage ratios and restrictions on incurring additional subsidiary indebtedness. At September 30, 2002, SAC Holdings was in compliance with all of these covenants.

Property and Casualty

Cash used by operating activities was $49.9 million and $21.4 million for the six months ended June 30, 2002 and 2001, respectively. This change resulted from decreased unearned premiums, a decrease in the change in premiums receivable from period to period, along with an increase in due from affiliates.

RepWest’s cash and cash equivalents and short-term investment portfolio was $6.8 million and $8.9 million at June 30, 2002 and 2001, respectively.

RepWest maintains a diversified securities investment portfolio, primarily in bonds, at varying maturity levels with 86.0% of the fixed-income securities consisting of investment grade securities. The maturity distribution is designed to provide sufficient liquidity to meet future cash needs. Current liquidity remains stable with current invested assets equal to 70.6% of total liabilities.

Life Insurance

Oxford’s primary sources of cash are premiums, receipts from interest-sensitive products and investment income. The primary uses of cash are operating costs and benefit payments to policyholders. Matching the investment portfolio to the cash flow demands of the types of insurance being written is an important consideration. Benefit and claim statistics are continually monitored to provide projections of future cash requirements.

Cash provided/(used) by operating activities was $(28.7) million and 2.0 million for the six months ended June 30, 2002 and 2001, respectively. The decrease in cash flows from operating activities in 2002 relates to $9.5 million of federal income taxes paid, $8.1 million increase in receivables for securities pending settlement, $7.1 million of reinsurance receivables paid, and paid loss experience. Cash flows provided by financing activities were $37.8 million and $9.1 million for the six months ended June 30, 2002 and 2001, respectively. Cash flows from deferred annuity sales increase investment contract deposits, which are a component of financing activities. The increase from 2001 is due to increased annuity deposits and reduced annuity withdrawals

In addition to cash flows from operating and financing activities, a substantial amount of liquid funds is available through Oxford’s short-term portfolio. At June 30, 2002 and 2001, short-term investments were $58.6 million and $53.9 million, respectively. Management believes that the overall sources of liquidity will continue to meet foreseeable cash needs.

See the discussion of the Kocher case contained in Part II, Item I “Legal Proceedings.”

Consolidated group

On October 15, 2002 the Company failed to make a $100 million principal payment and a $3.6 million interest payment due to the Series 1997-C Bond Backed Asset Trust (“BBAT”) holders. On that date, the Company also failed to pay a $26.5 million obligation, in the aggregate to Citibank and Bank of America in connection with the BBAT’s. This expense will be recognized in the third quarter.

As a result of the foregoing, the Company is in default with respect to its other credit arrangements that contain cross-default provisions, including its 3-Year Credit Agreement dated June 28, 2002 (the “Revolver”) in the amount of $205.0 million. In addition to the cross-default under the Revolver, the Company is also in default under that agreement as a result of the Company’s failure to obtain incremental net cash proceeds and/or availability from additional financings in the aggregate amount of at least $150 million prior to October 15, 2002. The obligations of the Company currently in default (either directly or as a result of a cross-default) are approximately $1,175.4 million. In addition, the Company may be required to pay interest at default interest rates, which would increase interest expense going forward.

The Company has retained the financial restructuring firm Crossroads, LLC to assist with the negotiation of standstill agreements with holders of directly defaulted obligations and waivers from our lenders holding cross-default obligations. This will allow us to pursue financing alternatives and asset sales that will enable us to repay the above-referred amounts that are in direct default, meet fiscal 2004 maturities and restructure our balance sheet.

Although we are optimistic that we will successfully restructure our balance sheet and repay our obligations, there can be no assurance that we will be able to complete the asset sales, obtain financing on acceptable terms or secure the standstills and waivers necessary to do so.

Cash provided by operating activities was $111.4 million and $43.9 million for the six months ended September 30, 2002 and 2001, respectively. The increase resulted primarily from a decrease in notes and mortgage receivable partially offset by decreases in the accounts payable and intercompany payable balances along with increased earnings.

At September 30, 2002, total outstanding notes and mortgages payable for AMERCO and wholly owned subsidiaries was $908.5 million compared to $1,045.8 million at March 31, 2002. At September 30, 2002, total outstanding notes and mortgages payable for SAC Holdings and consolidated subsidiaries was $967.0 million compared to $957.8 million at March 31, 2002. SAC Holdings’ securitized loan agreements have no guarantees, or triggers that could create a guarantee, from AMERCO. There are no cross default provisions on indebtedness between AMERCO and SAC Holdings.

AMERCO does not have any ownership interest in SAC Holdings or its subsidiaries, except for investments made by RepWest and Oxford in a SAC Holdings – controlled limited partnership which holds Canadian self-storage properties. The presentation of the consolidated statements has no bearing on the credit agreements or the operations of either AMERCO or SAC Holdings. The accounts of AMERCO and SAC Holdings are presented as consolidated due to a revised interpretation of EITF 90-15 by the Company’s former independent public accountants during the year ended March 31, 2002, which concluded that SAC Holdings’ majority owner did not qualify as

an independent third party to AMERCO.

From time to time, Real Estate sells storage properties to SAC Holdings. These sales have in the past provided significant cash flows to the Company. The ability of the Company to engage in similar transactions in the future is dependent to a large degree on the ability of SAC Holdings to obtain third party financing for its acquisition of properties from Real Estate and, in general, its willingness to engage in such transactions.

Due to the defaults that exist with respect to certain obligations of the Company we suspended the dividend payment to the holders of our Series A 8 1/2% preferred stock that is due December 1, 2002.

Credit Agreements

Our operations are funded by various credit and financing arrangements, including unsecured long-term borrowings, unsecured medium-term notes, revolving lines of credit with banks and operating leases. The operating leases are primarily used to finance the Company’s fleet of trucks and trailers. As of September 30, 2002, we had $908.5 million in total notes and loans payable outstanding.

On June 28, 2002, AMERCO entered into an agreement replacing an existing five year $400.0 million revolving credit agreement with a three-year $205.0 million revolving credit facility.

Certain of our credit agreements contain restrictive financial and other covenants, including, among others, covenants with respect to incurring additional indebtedness, making third party guarantees, entering into contingent obligations, maintaining certain financial ratios, placing certain additional liens on our properties and assets, and restricting the issuance of certain types of preferred stock. Although AMERCO was in compliance with these covenants at September 30, 2002, we were in default as of October 15, 2002 as a result of our failure to make the principal payment due to the BBAT holders and a covenant contained in the Credit Agreement that required the completion of a $150 million financing. For additional discussion regarding these defaults, see Part II, Item III “Defaults Upon Senior Securities.”

Reference is made to Note 5 of Notes to Consolidated Financial Statements in AMERCO’s Annual Report on Form 10-K/A for the fiscal year ended March 31, 2002 for additional information about our credit agreements.

Disclosures about Contractual Obligations and Commercial Commitments


	Payments due by Period (as of September 30, 2002)

				Prior to		10-01-03		10-01-05		October 1, 2007
Financial Obligations	Total			09-30-03		09-30-05		09-30-07		and thereafter

AMERCO’s notes and loans Payable	$	908,509		$	276,981	$	224,864	$	237,072	$	169,592




AMERCO’s truck and trailer Lease obligations		491,503			91,597		221,177		138,903		39,826




SAC Holdings’ financed lease obligations		117,000			46,800		70,200		—		—




SAC Holdings’ notes and loans payable		850,137			7,174		14,273		14,971		813,719




Elimination of SAC Holdings’ Obligations to AMERCO		(387,652	)		—		—		—		(387,652	)

Total Contractual Obligations	$	1,979,497		$	422,552	$	530,514	$	390,946	$	635,485

The above disclosure is as of September 30, 2002. As discussed above and in Part II, Item III “Defaults Upon Senior Securities”, on October 15, 2002 we defaulted on our BBATs and related obligations. This default triggered cross-default provisions in most of AMERCO’s other debt agreements. As a result, approximately $1,175.4 million of AMERCO’s contractual obligations and commercial commitments listed below are classified as current.


Bank of Montreal synthetic lease	$	149.0




Citibank synthetic lease		101.7




3yr Credit Agreement		205.0




Royal Bank of Canada lease		3.0




Amerco Real Estate Notes		100.0




’03 Notes		175.0




’05 Notes		200.0




Medium Term Notes		109.5




BBAT		100.0




Bank of America Obligation (BBAT)		11.3




Citicorp Obligation (BBAT)		15.3




Bank of America Swap		2.1




JP Morgan Swap		3.5

	$	1,175.4

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Reference is made to Part II, Item 7A, Quantitative and Qualitative Disclosure About Market Risk, in AMERCO’s Annual Report on Form 10-K/A for the fiscal year ended March 31, 2002.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Controls and Procedures

We maintain disclosure controls procedures, which are designed to ensure that material information related to AMERCO and its subsidiaries and SAC Holdings and their subsidiaries, is disclosed in our public filings on a regular basis. In response to recent legislation and proposed regulations, we reviewed our internal control structure and our disclosure controls and procedures. We believe our pre-existing disclosure controls and procedures are adequate to enable us to comply with our disclosure obligations.

Within 90 days prior to filing this report, members of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based upon that evaluation, management concluded that the Company’s disclosure controls and procedures are effective in causing material information to be recorded, processed, summarized and reported by management of the Company on a timely basis and to ensure that the quality and timeliness of the Company’s public disclosures complies with its SEC disclosure obligations.

Changes in Controls and Procedures

There were significant changes in the Company’s internal controls and other factors that could significantly affect these internal controls after the date of our most recent evaluation. They include, but are not limited to, the following:

a. We limited access to the general ledger (posting ability) to specifically identified individuals;

b. We require documentation for all journal postings;

c. We have hired a system administrator to document and map all accounting imports and exports to the various subledgers maintained throughout the organization.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

On July 20, 2000, Charles Kocher (“Kocher”) filed suit in Wetzel County, West Virgina, Civil Action No. 00-C-51-K, entitled Charles Kocher v. Oxford Life Insurance Co. (“Oxford”) seeking compensatory and punitive damages for breach of contract, bad faith and unfair claims settlement practices arising from an alleged failure of Oxford to properly and timely pay a claim under a disability and dismemberment policy aquired in conjunction with the purchase of a $7,800 used pick-up truck. On March 22, 2002, the jury returned a verdict of $5 million in compensatory damages and $34 million in punitive damages. On November 5, 2002, the trial court entered an Order (“Order”) affirming the $39 million jury verdit and denying Oxford’s Motion for New Trial Or, in The Alternative, Remittitur. Oxford is in the process of perfecting its appeal to the West Virginia Supreme Court. Management does not believe that the Order is sustainable and expects the Order to be overturned by the West Virginia Supreme Court, in part because the jury award has no reasonable nexus to the actual harm suffered by Kocher.

On September 24, 2002, Paul F.Shoen filed a derivative action in the Second Judicial District Court of the State of Nevada, Washoe County, captioned Paul F. Shoen vs. SAC Holding Corporation et al, CV02-05602, seeking damages and equitable relief on behalf of AMERCO from SAC Holdings and certain current and former members of the AMERCO Board of Directors, including Edward J. Shoen, Mark V. Shoen and James P. Shoen as defendants. AMERCO is named a nominal defendant for purposes of the derivative action. The complaint alleges breach of fiduciary duty, self-dealing, usurpation of corporate opportunities, wrongful interference with prospective economic advantage and unjust enrichment and seeks the unwinding of sales of self-storage properties by subsidiaries of AMERCO to SAC Holdings over the last several years. The complaint seeks a declaration that such transfers are void as well as unspecified damages. On October 28, 2002, AMERCO, the Shoen directors, the non-Shoen directors and SAC Holdings filed Motions to Dismiss the complaint. On November 12, 2002 the plaintiff responded to the Motions to Dismiss. The reply in support of the Motion to Dismiss is due on November 25, 2002. Oral argument has not yet been set for these motions. In addition, on October 28, 2002, Ron Belec filed a derivative action in the Second Judicial District Court of the State of Nevada, Washoe County, captioned Ron Belec vs. William E. Carty, et al, CV 02-06331. This derivative suit is substantially similar to the Paul F. Shoen derivative action. The defendants’ responsive pleading is due on December 13, 2002. AMERCO believes that the allegations contained in both complaints are baseless and without merit and AMERCO will aggressively and vigorously respond to these claims. However, as with any litigation, no assurances can be given as to the outcome.

We are currently under IRS examination for the years 1996-1997. The IRS has proposed adjustments to our 1997 and 1996 tax returns in the amount of $233.1 million and $99.0 million, respectively. Nearly all of the adjustments relate to denials of deductions that we took for costs incurred in resolution of prior litigation with certain members of the Shoen family and their corporations. We believe these income tax deductions are appropriate and we are vigorously contesting the IRS adjustments. We estimate that if we are unsuccessful in our challenge in all respects, based on our current tax position, we could incur tax exposure totaling approximately $76.1 million plus interest.

PART II. OTHER INFORMATION, continued

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

(a) On October 15, 2002, the Company failed to make a $100 million principal payment and a $3.6 million interest payment due to the Series 1997-C Bond Backed Asset Trust. On that date, the Company also failed to pay $26.5 million in the aggregate to Citibank and Bank of America in connection with the the early extinguishment of the Series 1997-C bonds. As a result of the foregoing, the Company is in default with respect to its other credit arrangements which contain cross-default provisions, including its 3-Year Credit Agreement dated June 28, 2002 (the “Credit Agreement”). In addition to the cross-default under the Credit Agreement, the Company is also in default under that agreement as a result of its failure to obtain incremental net cash proceeds and/or availability from additional financings in an aggregate amount of at least $150.0 million prior to October 15, 2002. The total amount of indebtedness currently in default (either directly or as a result of a cross-default) is approximately $1,175.4 million.

(b) On November 5, 2002, the Company announced that it has suspended the December 1, 2002 dividend payment to holders of its Series A 8.5% Preferred Stock. The dividend amount is $3.5 million.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The 2002 Annual Meeting of Stockholders was held on August 30,2002.

At the 2002 Annual meeting of Stockholders William E. Carty and Charles J. Bayer were elected to serve until the 2006 Annual Meeting of Stockholders. M. Frank Lyons was elected to serve until the 2004 Annual Meeting of Stockholders. John P. Brogan and James J. Grogan continue as directors with terms that expire at the 2003 Annual Meeting of Stockholders; Edward J. Shoen continues as a director with a term that expires at the 2004 Annual Meeting of Stockholders; and John M. Dodds and James P. Shoen continue as directors with terms that expire at the 2005 Annual Meeting of Stockholders.

The following table sets forth the votes cast for, against or withheld, as well as the number of abstentions and broker non-votes with respect to each matter voted on at the 2002 Annual Meeting of Stockholders.


Matters
Submitted		Votes Cast		Votes Cast		Votes				Broker
To a Vote		For		Against		Withheld		Abstentions		Non-Votes

Election of directors




	William E. Carty		18,870,928		42,489		792,384		3,262		—




	Charles J. Bayer		18,870,291		41,358		791,412		6,003		—




	M. Frank Lyons		18,862,109		42,114		788,438		16,402		—

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits


Exhibit No.		Description

3.1		Restated Articles of Incorporation (1)









3.2		Restated By-Laws of AMERCO as of August 27, 1997 (2) Certificate of Edward J. Shoen, President of AMERCO pursuant









10.10A		Addendum to Promissory Note between SAC Holding Corporation and a subsidiary of AMERCO









10.11A		Amendment and Addendum to Promissory Note between Four SAC Self-Storage Corporation and Nationwide Commercial Co.









10.35		Management Agreement between Eighteen Self-Storage Corporation and U-Haul









10.36		Management Agreement between Nineteen SAC Self-Storage Limited Partnership and U-Haul









10.37		Management Agreement between Twenty SAC Self-Storage Corporation and U-Haul









10.38		Management Agreement between Twenty-One SAC Self-Storage Corporation and U-Haul









10.39		Management Agreement between Twenty-Two SAC Self-Storage Corporation and U-Haul









10.40		Management Agreement between Twenty-Three SAC Self-Storage Corporation and U-Haul









10.41		Management Agreement between Twenty-Four SAC Self Storage Limited Partnership and U-Haul









10.42		Management Agreement between Twenty-Five SAC Self-Storage Limited Partnership and U-Haul









10.43		Management Agreement between Twenty-Six SAC Self-Storage Limited Partnership and U-Haul









10.44		Management Agreement between Twenty-Seven SAC Self-Storage Limited Partnership and U-Haul









10.45		3-Year Credit Agreement with certain lenders named therein









10.46		Promissory Note between Four SAC Self-Storage Corporation and U-Haul International, Inc.









10.46A		Amendment and Addendum to Promissory Note between Four SAC Self-Storage Corporation and U-Haul International, Inc.









10.47		Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.48		Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.48A		Amendment and Addendum to Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.49		Promissory Note between Five SAC Self-Storage Corporation and Nationwide Commercial Co.









10.50		Promissory Note between Five SAC Self-Storage Corporation and Nationwide Commercial Co.









10.50A		Amendment and Addendum to Promissory Note between Five SAC Self- Storage Corporation and Nationwide Commercial Co.









10.51		Promissory Note between Five SAC Self-Storage Corporation and U-Haul International, Inc.









10.52		Promissory Note between SAC Holding Corporation and Oxford Life Insurance Company









10.53		Promissory Note between SAC Holding Corporation and Nationwide Commercial Company









10.53A		Amendment and Addendum to Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.54		Promissory Note between SAC Holding Corporation and U-Haul International, Inc.









10.54A		Amendment and Addendum to Promissory Note between SAC Holding Corporation and U-Haul International, Inc.









10.55		Promissory Note between SAC Holding Corporation and U-Haul International, Inc.









10.55A		Amendment and Addendum to Promissory Note between SAC Holding Corporation and U-Haul International, Inc.









10.56		Promissory Note between SAC Holding Corporation and U-Haul International, Inc.









10.56A		Amendment and Addendum to Promissory Note between SAC Holding Corporation and U-Haul International, Inc.









10.57		Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.57A		Amendment and Addendum to Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.58		Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.58A		Amendment and Addendum to Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.59		Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.60		Junior Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.61		Promissory Note between SAC Holding Corporation and U-Haul International, Inc.









10.62		Promissory Note between SAC Holding Corporation and U-Haul International, Inc.









10.63		Promissory Note between SAC Financial Corporation and U-Haul International, Inc.









99.1		Certificate of Edward J. Shoen, President of AMERCO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002









99.2		Certificate of Gary B. Horton, Treasurer of AMERCO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002









99.3		Certificate of Edward J. Shoen, President of U-Haul International, Inc. pursuant to Section 906 of the Sarbanes-Oxley Act of 2002









99.4		Certificate of Gary B. Horton, Assistant Treasurer of U-HAUL, International, Inc. pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(b) Reports on Form 8-K.

On September 27, 2002 and September 30, 2002, the Company filed reports on Form 8-K relating to the proposed offering of its Senior Notes due 2009. On October 16, 2002 and October 18, 2002, the Company filed reports on Form 8-K to disclose the Company’s retention of a financial advisor to assist it in restructuring certain of its debt.

(1)		Incorporated by reference to AMERCO’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2002, file no. 1-11255.




(2)		Incorporated by reference to AMERCO’s Quarterly Report on Form 10-Q for the quarter ended December 31, 1997, file no. 1-11255.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		AMERCO









		(Registrant)









Dated: November 18, 2002		By: /S/ GARY B. HORTON









		Gary B. Horton, Treasurer




		(Principal Financial Officer)

Certification of CFO Pursuant to
Securities Exchange Acts Rules 13a-14 and 15d-14
As Adopted Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002

CERTIFICATION OF THE TREASURER OF AMERCO

I, Gary B. Horton, certify that:

1. I have reviewed this quarterly report on Form 10-Q of AMERCO;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) Designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) Evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the “Evaluation Date”); and

c) Presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

a) All significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and

6. The registrant’s other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.


Date: November 18, 2002




		/s/ Gary B. Horton









		Gary B. Horton




		Treasurer of AMERCO

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		U-Haul International, Inc.









		(Registrant)









Dated: November 18, 2002		By: /S/ GARY B. HORTON









		Gary B. Horton, Assistant Treasurer




		(Principal Financial Officer)

Certification of CFO Pursuant to
Securities Exchange Acts Rules 13a-14 and 15d-14
As Adopted Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002

CERTIFICATION OF THE ASSISTANT TREASURER OF U-HAUL INTERNATIONAL, INC.

I, Gary B. Horton, certify that:

1. I have reviewed this quarterly report on Form 10-Q of U-Haul International, Inc.;

b) Evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the “Evaluation Date”); and

c) Presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and


Date: November 18, 2002




		/s/ Gary B. Horton




		Gary B. Horton




		Assistant Treasurer of U-Haul International, Inc.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		AMERCO









		(Registrant)









Dated: November 18, 2002		/s/ Edward J. Shoen









		Edward J. Shoen




		Chairman of the Board and President

Certification of CEO Pursuant to
Securities Exchange Acts Rules 13a-14 and 15d-14
As Adopted Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002

CERTIFICATIONS

CERTIFICATION OF THE PRESIDENT OF AMERCO

I, Edward J. Shoen, certify that:

1. I have reviewed this quarterly report on Form 10-Q of AMERCO;

b) Evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the “Evaluation Date”); and

c) Presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and


Date: November 18, 2002




		/s/ Edward J. Shoen





		Edward J. Shoen




		President of AMERCO

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		U-Haul International, Inc









		(Registrant)









Dated: November 18, 2002




		/s/ Edward J. Shoen





		Edward J. Shoen




		Chairman of the Board and President

Certification of CEO Pursuant to
Securities Exchange Acts Rules 13a-14 and 15d-14
As Adopted Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002

CERTIFICATION OF THE PRESIDENT OF U-HAUL INTERNATIONAL, INC.

I, Edward J. Shoen, certify that:

1. I have reviewed this quarterly report on Form 10-Q of U-Haul International, Inc.;

b) Evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the “Evaluation Date”); and

c) Presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and


Date: November 18, 2002









		/s/ Edward J. Shoen




		Edward J. Shoen




		President of U-Haul International, Inc.

INDEX OF EXHIBITS


Exhibit No.		Description

3.1		Restated Articles of Incorporation (1)









3.2		Restated By-Laws of AMERCO as of August 27, 1997 (2)









10.10A		Addendum to Promissory Note between SAC Holding Corporation and a subsidiary of AMERCO









10.11A		Amendment and Addendum to Promissory Note between Four SAC Self-Storage Corporation and Nationwide Commercial Co.









10.35		Management Agreement between Eighteen Self-Storage Corporation and U-Haul














10.36		Management Agreement between Nineteen SAC Self-Storage Limited Partnership and U-Haul









10.37		Management Agreement between Twenty SAC Self-Storage Corporation and U-Haul









10.38		Management Agreement between Twenty-One SAC Self-Storage Corporation and U-Haul









10.39		Management Agreement between Twenty-Two SAC Self-Storage Corporation and U-Haul









10.40		Management Agreement between Twenty-Three SAC Self-Storage Corporation and U-Haul









10.41		Management Agreement between Twenty-Four SAC Self Storage Limited Partnership and U-Haul









10.42		Management Agreement between Twenty-Five SAC Self-Storage Limited Partnership and U-Haul









10.43		Management Agreement between Twenty-Six SAC Self-Storage Limited Partnership and U-Haul









10.44		Management Agreement between Twenty-Seven SAC Self-Storage Limited Partnership and U-Haul









10.45		3-Year Credit Agreement with certain lenders named therein









10.46		Promissory Note between Four SAC Self-Storage Corporation and U-Haul International, Inc.









10.46A		Amendment and Addendum to Promissory Note between Four SAC Self-Storage Corporation and U-Haul International, Inc.









10.47		Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.48		Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.48A		Amendment and Addendum to Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.49		Promissory Note between Five SAC Self-Storage Corporation and Nationwide Commercial Co.









10.50		Promissory Note between Five SAC Self-Storage Corporation and Nationwide Commercial Co.









10.50A		Amendment and Addendum to Promissory Note between Five SAC Self-Storage Corporation and Nationwide Commercial Co.









10.51		Promissory Note between Five SAC Self-Storage Corporation and U-Haul International, Inc.









10.52		Promissory Note between SAC Holding Corporation and Oxford Life Insurance Company









10.53		Promissory Note between SAC Holding Corporation and Nationwide Commercial Company









10.53A		Amendment and Addendum to Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.54		Promissory Note between SAC Holding Corporation and U-Haul International, Inc.









10.54A		Amendment and Addendum to Promissory Note between SAC Holding Corporation and U-Haul International, Inc.









10.55		Promissory Note between SAC Holding Corporation and U-Haul International, Inc.









10.55A		Amendment and Addendum to Promissory Note between SAC Holding Corporation and U-Haul International, Inc.









10.56		Promissory Note between SAC Holding Corporation and U-Haul International, Inc.









10.56A		Amendment and Addendum to Promissory Note between SAC Holding Corporation and U-Haul International, Inc.









10.57		Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.57A		Amendment and Addendum to Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.58		Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.58A		Amendment and Addendum to Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.59		Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.60		Junior Promissory Note between SAC Holding Corporation and Nationwide Commercial Co.









10.61		Promissory Note between SAC Holding Corporation and U-Haul International, Inc.









10.62		Promissory Note between SAC Holding Corporation and U-Haul International, Inc.









10.63		Promissory Note between SAC Financial Corporation and U-Haul International, Inc.









99.1		Certificate of Edward J. Shoen, President of AMERCO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002









99.2		Certificate of Gary B. Horton, Treasurer of AMERCO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002









99.3		Certificate of Edward J. Shoen, President of U-Haul International, Inc. pursuant to Section 906 of the Sarbanes-Oxley Act of 2002









99.4		Certificate of Gary B. Horton, Assitant Treasurer of U-Haul International, Inc. pursuant to Section 906 of the Sarbanes-Oxley Act of 2002





(1)		Incorporated by reference to AMERCO’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2002, file no. 1-11255.




(2)		Incorporated by reference to AMERCO’s Quarterly Report on Form 10-Q for the quarter ended December 31, 1997, file no. 1-11255.

	a.		We limited access to the general ledger (posting ability) to specifically identified individuals;

	b.		We require documentation for all journal postings;

	c.		We have hired a system administrator to document and map all accounting imports and exports to the various subledgers maintained throughout the organization.